<PAGE>
As filed with the Securities and Exchange Commission on October , 1996
Registration No. 333-
____________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------
FORM S-6
Registration Statement Under
THE SECURITIES ACT OF 1933
-----------------
JOHN HANCOCK VARIABLE LIFE ACCOUNT S
(Exact name of trust)
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
(Name of depositor)
JOHN HANCOCK PLACE
BOSTON, MASSACHUSETTS 02117
(Complete address of depositor's principal executive offices)
-----------------
SANDRA M. DADALT, ESQ.
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY
JOHN HANCOCK PLACE, BOSTON, 02117
(Name and complete address of agent for service)
-----------------
Copy to:
THOMAS C. LAUERMAN, ESQ.
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036
-----------------
Approximate date of proposed public offering: as soon as practicable after the
effective date of this Registration Statement.
An indefinite amount of the Registrant's securities has been registered pursuant
to a declaration under Rule 24f-2, under the Investment Company Act of 1940, set
out in a previously filed Form S-6 Registration Statement of Registrant and
Registrant's Depositor (File No. 33-64366). Registrant filed its Rule 24f-2
Notice for the December 31, 1995 fiscal year on February 22, 1996.
Title and amount of securities being registered: interests under flexible
premium variable life policies.
The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
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CROSS-REFERENCE TABLE
Form N-8B-2 Item Caption in Prospectus
- ---------------- ---------------------
1, 2 Cover, The Account and The Series
Funds, JHVLICO and John Hancock
3 Inapplicable
4 Cover, Distribution of Policies
5, 6 The Account and The Series Funds
7, 8, 9 Inapplicable
10(a),(b),(c),(d),(e) Policy Provisions and Benefits
10(f) Voting Privileges
10(g),(h) Changes that JHVLICO
Can Make
10(i) Appendix--Other Policy
Provisions, The Account and
The Series Funds
11, 12 Summary, The Account and The Series
Funds, Distribution of Policies
13 Summary, Charges and Expenses,
Appendix--Illustration of Death
Benefits, Surrender Values
and Accumulated Premiums
14, 15 Summary, Distribution of
Policies, Premiums
16 The Account and The Series Funds
17 Summary, Policy
Provisions and Benefits
18 The Account and The Series Funds,
Tax Considerations
19 Reports
20 Changes that JHVLICO Can Make
21 Policy Provisions and Benefits
22 Policy Provisions and Benefits
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23 Distribution of Policies
24 Not Applicable
25 JHVLICO and John Hancock
26 Not Applicable
27,28,29,30 JHVLICO and John Hancock, Board
of Directors and Executive
Officers of JHVLICO
31,32,33,34 Not Applicable
35 JHVLICO and John Hancock
37 Not Applicable
38,39,40,41(a) Distribution of Policies,
JHVLICO and John Hancock,
Charges and Expenses
42, 43 Not Applicable
44 The Account and The Series Funds,
Policy Provisionsand Benefits
Appendix--Illustration of Death
Benefits, Surrender Values
and Accumulated Premiums
45 Not Applicable
46 The Account and The Series Funds,
Policy Provisions and Benefits,
Appendix--Illustration of Death
Benefits, Surrender Values
and Accumulated Values
47, 48, 49, 50 Not Applicable
51 Policy Provisions and Benefits,
Appendix--Other Policy Provisions
52 The Account and The Series Funds,
Changes that JHVLICO
Can Make
53,54,55 Not Applicable
56,57,58 Not Applicable
59 Financial Statements
<PAGE>
John Hancock Variable Life
Insurance Company
(JHVLICO)
LOGO
JOHN HANCOCK VARIABLE LIFE ACCOUNT S
LIFE AND ANNUITY SERVICES P.O. BOX 111 BOSTON, MASSACHUSETTS 02117
TELEPHONE 1-800-REAL LIFE (1-800-732-5543) FAX 617-572-5410
PROSPECTUS MAY 1, 1996
The flexible premium variable life policy ("Policy") described in this
Prospectus can be funded, at the discretion of the Owner, by any of the
variable subaccounts of John Hancock Variable Life Account S (the "Account"),
by a fixed subaccount (the "Fixed Account"), or by any combination of the
Fixed Account and the variable subaccounts (collectively, the "Subaccounts").
The assets of each variable Subaccount will be invested in a corresponding
investment portfolio ("Portfolio") of John Hancock Variable Series Trust I, a
mutual fund advised by John Hancock Mutual Life Insurance Company ("John
Hancock") or of M Fund, Inc., a mutual fund advised by M Financial Investment
Advisers, Inc. (collectively the "Funds"). The assets of the Fixed Account
will be invested in the general account of John Hancock Variable Life
Insurance Company ("JHVLICO").
The Prospectuses for the Funds, which are attached to this Prospectus,
describe the investment objectives, policies and risks of investing in the
Portfolios of the Funds: Growth and Income (formerly Stock), Large Cap Growth
(formerly Select Stock), Sovereign Bond (formerly Bond), Money Market,
Managed, Real Estate Equity, International Equities (formerly International),
Short-Term U.S. Government, Special Opportunities, Small Cap Growth, Small Cap
Value, Mid Cap Growth, Mid Cap Value, International Balanced, International
Opportunities, Large Cap Value, Strategic Bond and Equity Index and in the
Portfolios of M Funds, Inc.: Edinburgh Overseas Equity, Turner Core Growth and
Frontier Capital Appreciation. Other variable Subaccounts and Portfolios may
be added in the future.
Replacing existing insurance with a Policy described in this Prospectus may
not be to your advantage.
THIS PROSPECTUS SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
IT IS NOT VALID UNLESS ATTACHED TO CURRENT PROSPECTUSES FOR THE FUNDS.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
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TABLE OF CONTENTS
<TABLE>
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Page
<S> <C>
SUMMARY................................................................... 1
JHVLICO and JOHN HANCOCK.................................................. 6
THE ACCOUNT AND THE SERIES FUNDS.......................................... 7
The Account............................................................. 7
The Series Funds........................................................ 7
THE FIXED ACCOUNT......................................................... 10
POLICY PROVISIONS AND BENEFITS............................................ 10
Requirements for Issuance of Policy..................................... 10
Premiums................................................................ 11
Account Value and Surrender Value....................................... 13
Death Benefits.......................................................... 14
Transfers Among Subaccounts............................................. 16
Loan Provisions and Indebtedness........................................ 17
Default................................................................. 18
Exchange Privilege...................................................... 19
CHARGES AND EXPENSES...................................................... 19
Charges Deducted from Premiums.......................................... 19
Sales Charge............................................................ 20
Reduced Charges for Eligible Groups..................................... 20
Charges Deducted from Account Value or Assets........................... 21
Guarantee of Certain Charges............................................ 23
DISTRIBUTION OF POLICIES.................................................. 23
TAX CONSIDERATIONS........................................................ 24
Policy Proceeds......................................................... 24
Charge for JHVLICO's Taxes.............................................. 25
Corporate and H.R. 10 Plans............................................. 25
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS OF JHVLICO...................... 26
REPORTS................................................................... 26
VOTING PRIVILEGES......................................................... 27
CHANGES THAT JHVLICO CAN MAKE............................................. 27
STATE REGULATION.......................................................... 28
LEGAL MATTERS............................................................. 28
REGISTRATION STATEMENT.................................................... 28
EXPERTS................................................................... 28
FINANCIAL STATEMENTS...................................................... 28
APPENDIX--OTHER POLICY PROVISIONS......................................... A-1
Settlement Provisions................................................... A-1
Additional Insurance Benefits........................................... A-1
General Provisions...................................................... A-1
APPENDIX--ILLUSTRATION OF DEATH BENEFITS, SURRENDER VALUES AND ACCUMULATED
PREMIUMS................................................................. A-3
</TABLE>
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE. NO PERSON IS AUTHORIZED TO MAKE ANY
REPRESENTATIONS IN CONNECTION WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN
THIS PROSPECTUS.
<PAGE>
INDEX OF DEFINED WORDS AND PHRASES
Below are listed certain words and phrases used in this Prospectus, together
with identification of the page on which each is defined or explained:
<TABLE>
<CAPTION>
Page
<S> <C>
Account.............................................................. 7
Account Value........................................................ 1
Additional Sum Insured............................................... 15
Age.................................................................. A-2
Basic Sum Insured.................................................... 1
DAC Tax.............................................................. 19
Death Benefit........................................................ 14
Fixed Account........................................................ 10
Funds......................................................... Front Cover
Grace Period......................................................... 18
Guaranteed Minimum Death Benefit..................................... 15
Guaranteed Minimum Death Benefit Premium............................. 11
Home Office.......................................................... 6
Indebtedness......................................................... 17
Investment Rule...................................................... 12
Loan Account......................................................... 17
Minimum First Premium................................................ 11
Optional Extra Death Benefit......................................... 14
Planned Premium...................................................... 11
Policy Anniversary................................................... A-2
Portfolio..................................................... Front Cover
Subaccount.................................................... Front Cover
Total Sum Insured.................................................... 5
Surrender Value...................................................... 13
Target Premium....................................................... 20
Valuation Date....................................................... 10
Valuation Period..................................................... 10
Variable Subaccounts................................................. 2
7-Pay Limit.......................................................... 12
</TABLE>
<PAGE>
SUMMARY
WHAT IS THE VARIABLE LIFE POLICY BEING OFFERED?
John Hancock Variable Life Insurance Company ("JHVLICO") issues variable
life insurance policies. The Policies described in this Prospectus provide
life insurance coverage when the insured dies. The Policies also provide for
premium flexibility. JHVLICO issues other variable life insurance policies.
These other policies are offered by means of other Prospectuses.
As explained below, the death benefit and Surrender Value under the Policy
may increase or decrease daily. The Policies differ from ordinary fixed-
benefit life insurance in the way they work. However, the Policies are like
fixed-benefit life insurance in providing lifetime protection against economic
loss resulting from the death of the insured. The Policies are primarily
insurance and not investments.
The Policies work generally as follows: the Policy owner (the "Owner")
periodically gives JHVLICO a premium payment. JHVLICO takes from each premium
an amount for processing expenses, taxes, and sales expenses. JHVLICO then
places the rest of the premium into the Subaccounts as directed by the Owner.
The assets allocated to each variable Subaccount are invested in shares of the
corresponding Portfolio of the Funds. The currently available Portfolios are
identified on the cover of this Prospectus. The assets allocated to the Fixed
Account are invested in the general account of JHVLICO. During the year,
JHVLICO takes charges from each Subaccount and credits or charges each
Subaccount with its respective investment performance. The insurance charge,
which is deducted from the invested assets attributable to each Policy
("Account Value"), varies monthly with the then attained age of the insured
and with the amount of insurance provided at the start of each month.
The Policy provides for payment of death benefit proceeds when the insured
dies. The death benefit proceeds will equal the death benefit, plus any
additional benefit included by rider and then due, minus any Indebtedness. The
death benefit under Option A equals the Total Sum Insured less any withdrawals
that the Owner has made. The death benefit under Option B equals the Total Sum
Insured plus the Policy Account Value on the date of death of the insured. The
death benefit under Option M equals the Total Sum Insured, less any
withdrawals by the Owner, plus any optional Extra Death Benefit. The Policy
also increases the death benefit if necessary to ensure that the Policy will
continue to qualify as life insurance under the Federal tax laws.
Within limits prescribed by JHVLICO, the Owner may also elect whether to
purchase the coverage as part of the "Basic Sum Insured" or as an "Additional
Sum Insured". The Basic Sum Insured will not lapse during the first ten Policy
years, so long as specified Guaranteed Minimum Death Benefit Premiums have
been paid. The Owner may elect for this Guaranteed Minimum Death Benefit
feature to extend beyond ten years. The Additional Sum Insured is subject to
lapse, but has certain cost and other advantages. The Total Sum Insured equals
the sum of the "Basic Sum Insured" plus the amount of any "Additional Sum
Insured."
The initial Account Value is the amount of the premium that JHVLICO credits
to the Policy, after deduction of the initial charges. The Account Value
increases or decreases daily depending on the investment experience of the
Subaccounts to which the amounts are allocated at the direction of the Owner.
JHVLICO does not guarantee a minimum amount of Account Value. Therefore, the
Owner bears the investment risk for that portion of the Account Value
allocated to the variable Subaccounts. The Owner may surrender a Policy at any
time while the insured is living. The Surrender Value is the Account Value
less any Indebtedness. At issue, the Owner may elect to purchase an Enhanced
Cash Value Rider which will provide a benefit payable in addition to the
Surrender Value if the Policy is surrendered in the first nine Policy years.
The Owner may also make partial withdrawals from a Policy, subject to certain
restrictions and an administrative charge.
1
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If the Owner surrenders in the early Policy years, the amount of Surrender
Value would be low (as compared with other investments without sales charges)
and, consequently, the insurance protection provided prior to surrender would
be costly.
The minimum Total Sum Insured that may be bought at issue is $500,000. All
persons insured must meet specified age limits and certain health and other
criteria called "underwriting standards." The smoking status of the insured is
generally reflected in the insurance charges made. Policies issued under
certain circumstances will not directly reflect the sex of the insured in
either the premium rates or the charges and values under the Policy.
WHAT IS THE AMOUNT OF THE PREMIUMS?
Premiums are flexible, and the Owner may choose the amount and frequency of
premium payments, so long as each premium payment is at least $100 and meets
certain other requirements.
The minimum amount of premium required at the time of Policy issue is
determined by JHVLICO based on the characteristics of the insured, the
Policy's Basic Sum Insured at issue, and the Policy options selected by the
Owner. Unless the Guaranteed Minimum Death Benefit is in effect, if the Policy
Account Value at the beginning of any Policy month is insufficient to pay the
monthly Policy charges then due, JHVLICO will estimate the amount of
additional premiums necessary to keep the Policy in force for three months.
The Owner will have a 61 day grace period to pay at least that amount or the
Policy will lapse.
At the time of Policy issue, the Owner may designate the amount and
frequency of Planned Premium payments. The Owner may pay premiums other than
the Planned Premium payments, subject to certain limitations.
The Policy has a Guaranteed Minimum Death Benefit provision which guarantees
that the Basic Sum Insured will not lapse during the first ten Policy years if
prescribed amounts of premiums have been paid, based on the characteristics of
the insured and the amount of the Basic Sum Insured at issue. The Owner may at
the time of application for the Policy elect that this feature be extended
beyond the first ten Policy years at an additional charge.
WHAT IS JOHN HANCOCK VARIABLE LIFE ACCOUNT S?
The Account is a separate investment account of JHVLICO, operated as a unit
investment trust, which supports benefits payable under the Policies. There
are currently twelve variable Subaccounts within the Account. Each is invested
in a corresponding Portfolio of John Hancock Variable Series Trust I or of M
Fund, Inc., each of which is a "series" type of mutual fund. The Portfolios of
the Funds which are currently available are Growth and Income, Large Cap
Growth, Sovereign Bond, Money Market, Managed, Real Estate Equity,
International Equities, Short-Term U.S. Government, Special Opportunities,
Small Cap Growth, Small Cap Value, Mid Cap Growth, Mid Cap Value,
International Balanced, International Opportunities, Large Cap Value,
Strategic Bond, Equity Index, Edinburgh Overseas Equity, Turner Core Growth
and Frontier Capital Appreciation.
John Hancock receives a fee from John Hancock Variable Series Trust I for
providing investment management services with respect to the Growth and
Income, Sovereign Bond and Money Market Portfolios at an annual rate of .25%
of the average daily net assets; with respect to the Large Cap Growth and
Managed Portfolios, at an annual rate of .40% of the first $500 million of the
average daily net assets and at lesser percentages for amounts above $500
million; with respect to the Short-Term U.S. Government Portfolio, at an
annual rate of .50% of the first $250 million of the average daily net assets
and at lesser percentages for amounts above $250 million; with respect to the
Real Estate Equity Portfolio, at an annual rate of .60% of the first $300
2
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million of the average daily net assets and at lesser percentages for amounts
above $300 million; with respect to the International Equities Portfolio, at
an annual rate of .60% of the first $250 million of the average daily net
assets and at lesser percentages for amounts above $250 million; with respect
to the Special Opportunities Portfolio, at an annual rate of .75% of the first
$250 million of the average daily net assets and at lesser percentages for
amounts above $250 million; with respect to the Equity Index Portfolio at an
annual rate of 0.25% of the average daily net assets; with respect to the
Large Cap Value and Small Cap Growth Portfolios at an annual rate of 0.75% of
the average daily net assets; with respect to the Mid Cap Growth Portfolio at
an annual rate of 0.85% for the first $100,000,000 of average daily net assets
and at lesser percentages for amounts above $100,000,000; with respect to the
Mid Cap Value Portfolio at an annual rate of 0.80% of the first $250,000,000
of average daily net assets and at lesser percentages for amounts above
$250,000,000; with respect to the Small Cap Value Portfolio at an annual rate
of 0.80% of the first $100,000,000 of average daily net assets and at lesser
percentages for amounts above $100,000,000; with respect to the Strategic Bond
Portfolio at an annual rate of 0.75% of the first $25,000,000 of average daily
net assets and at lesser percentages for amounts above $25,000,000; with
respect to the International Opportunities Portfolio at an annual rate of 1%
of the first $20,000,000 of average daily net assets and at lesser percentages
for amounts above $20,000,000; and for the International Balanced Portfolio at
an annual rate of 0.85% of the first $100,000,000 of average daily net assets
and at a lesser percentage for amounts above $100,000,000.
M Financial Investment Advisers, Inc., receives a fee from M Fund, Inc. for
providing investment management services with respect to the International
Equity Portfolio at an annual rate of 1.05% of the first $10 million of the
average daily net assets and at an annual rate of .90% of the next $15 million
of the average daily net assets and at lesser percentages for amounts above
$25 million; with respect to the Core Growth Portfolio at an annual rate of
.45% of the average daily net assets; and with respect to the Capital
Appreciation Portfolio at an annual rate of .90% of the average daily net
assets.
For a full description of the Funds, see the Prospectuses for the Funds
attached to this Prospectus.
WHAT ARE THE CHARGES MADE BY JHVLICO?
Premium Processing Charge. A 1.25% charge deducted from each premium
payment.
State Premium Tax Charge and Federal DAC Tax Charge. Charges deducted from
each premium payment, currently 2.35% for state premium taxes and 1.25% as a
Federal deferred acquisition cost or "DAC Tax" charge.
Sales Charge. A charge deducted from each premium payment in the amount of
30% of premiums paid in the first Policy year up to the "target premium" and
3.5% of premiums paid during the first Policy year in excess of that target.
The sales charge in subsequent Policy years generally is 10% of premiums paid
up to the target premium in each of years 2 through 10; and 4% of premiums
paid up to the target premium thereafter. The sales charge for premiums paid
in excess of the target premium is 3.5% of such excess premiums paid in all
Policy years. These sales charges are guaranteed.
Issue Charge. A charge deducted monthly from Account Value for the first 10
Policy years in an amount set forth in the Policy per $1,000 of the Basic Sum
Insured at issue. Such amount varies by age at issue. For example, this
additional monthly amount for a 45 year old is 10c per $1,000 of Basic Sum
Insured at issue. This charge is guaranteed not to exceed $200 per month and
will be at least $5 per month.
Administrative Charge. A charge deducted monthly from Account Value
currently in an amount equal to $5 per Policy. This charge is guaranteed not
to exceed $10 per Policy per month.
3
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Insurance Charge. A charge based upon the amount for which JHVLICO is at
risk, considering the attained age and risk classification of the insured and
JHVLICO's then current monthly insurance rates (never to exceed rates set
forth in the Policy) deducted monthly from Account Value.
Guaranteed Minimum Death Benefit Charge. If the Guaranteed Minimum Death
Benefit option is elected beyond the first 10 Policy years, a maximum charge,
starting at the beginning of the eleventh Policy year, not to exceed 3c
(currently 1c) per $1,000 of the Basic Sum Insured at issue is deducted
monthly from Account Value.
Charge for Mortality and Expense Risks. A charge made daily at a maximum
effective annual rate of .60% of the assets of the Account. The current charge
is .35%.
Charge for Extra Mortality Risks. An additional charge, depending upon the
age of the insured and the degree of additional mortality risk, required if
the insured does not qualify for the standard underwriting class. This
additional charge is deducted monthly from Account Value.
Charge for Optional Enhanced Cash Value Rider. A charge equal to 2% of the
premium payment will be deducted from each premium payment received in the
first Policy year up to the annual target premium. This charge is assessed in
the first Policy year only.
Charge for Other Optional Rider Benefits. An additional charge required if
the Owner elects to purchase optional insurance benefits by rider (other than
the Enhanced Cash Value Rider). This additional charge is deducted monthly
from Account Value.
Charge for Partial Withdrawal. A charge of $20 made against Account Value at
the time of withdrawal.
See "Charges and Expenses" for a full description of the charges under the
Policy.
IS THERE A CHARGE AGAINST THE ACCOUNT FOR FEDERAL INCOME TAX?
Currently no charge is made against any Subaccount for Federal income taxes;
but if JHVLICO incurs, or expects to incur, income taxes attributable to any
Subaccount or this class of Policies in future years, it reserves the right to
make a charge. JHVLICO expects that it will continue to be taxed as a life
insurance company. See "Charge for JHVLICO's Taxes".
WHAT IS THE RELATIONSHIP BETWEEN THE PREMIUM AND THE AMOUNT ALLOCATED TO THE
SUBACCOUNTS?
The initial net premium is allocated by JHVLICO from its general account to
the Money Market Subaccount on the date of issue of the Policy. The initial
net premium is the gross Minimum First Premium, plus any additional amount of
premium that has been paid prior to the date of issue, less the premium
processing charge, and less the charges deducted for sales expenses, state
premium taxes and the Federal DAC Tax. These charges also apply to subsequent
premium payments. Twenty days after the date of issue, the amount in the Money
Market Subaccount is reallocated among the Subaccounts in accordance with the
Owner's election. Net premiums derived from payments received after this
reallocation date are allocated, generally on the date of receipt, to one or
more of the Subaccounts as elected by the Owner.
HOW ARE AMOUNTS ALLOCATED TO EACH SUBACCOUNT?
At issue and subsequently thereafter, the Owner will provide us with the
rule ("Investment Rule") we will follow to invest net premiums or other
amounts in any of the Subaccounts. The Owner may change the Investment Rule
under which JHVLICO will allocate amounts to Subaccounts. See "Premiums--
Billing, Allocation of Premium Payments (Investment Rule)".
4
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WHAT COMMISSIONS ARE PAID TO AGENTS?
The Policies are sold through agents who are licensed by state authorities
to sell JHVLICO's insurance policies. Commissions payable to agents are
described under "Distribution of Policies". Sales expenses in any year are not
equal to the deduction for sales expenses in that year. Rather, total sales
expenses under the Policies are intended to be recovered over the lifetimes of
the insureds covered by the Policies.
WHAT IS THE DEATH BENEFIT?
The death benefit proceeds will equal the death benefit of the Policy, plus
any additional rider benefits included and then due, minus any Indebtedness.
The death benefit payable depends on the Policy's Total Sum Insured (the Total
Sum Insured is the Basic Sum Insured plus the amount of any Additional Sum
Insured) and the death benefit option selected by the Owner at the time the
Policy is issued, as follows:
OPTION A: The death benefit equals the Policy's current Total Sum Insured
less any withdrawals of Account Value that the Owner has made.
OPTION B: The death benefit is the Policy's current Total Sum Insured
plus the Policy Account Value on the date of death of the insured, and
varies in amount based on investment results.
OPTION M: The death benefit equals the Policy's current Total Sum Insured
less any withdrawals of Account Value that the Owner has made plus any
Optional Extra Death Benefit.
The death benefit of the Policy under Options A, B, or M will be increased
if necessary to ensure that the Policy will continue to qualify as life
insurance under the Federal tax law. See "Death Benefits" and "Tax
Considerations".
Under the Guaranteed Minimum Death Benefit provision, the Policy is
guaranteed not to lapse during the first 10 Policy years, provided the amount
of premiums paid, accumulated at 4% interest, minus any withdrawals, also
accumulated at 4% interest, is at least equal to the Guaranteed Minimum Death
Benefit Premiums, accumulated at 4% interest. For an additional charge, the
Owner may elect this benefit to continue beyond the tenth Policy year.
HOW DOES THE ACCOUNT VALUE OF A POLICY VARY IN RELATION TO THE SUBACCOUNTS'
INVESTMENT EXPERIENCE?
In general, the Account Value for any day equals the Account Value for the
previous day, increased by any net premium placed in the Subaccounts for the
Policy, decreased by any charges made against the Account Value, and increased
or decreased by the investment experience of the Subaccounts. No minimum
Account Value for the Policy is guaranteed.
WHAT IS THE LOAN PROVISION AND HOW DOES A LOAN AFFECT THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE?
The Loan Value will be equal to (a) minus (b) minus (c) where: (a) is the
Account Value, (b) is twelve times the sum of all monthly charges deducted
from the Account Value for the Policy month in which the loan is obtained; and
(c) is (a) above minus (b) above multiplied by .75% in Policy years 1-20 and
.25% thereafter. Interest charged on any loan will accrue and compound daily
at an effective annual rate of 4.75% in the first 20 Policy years and 4.25%
thereafter. Interest charged on any loans will accrue and compound daily at an
effective annual rate of 4.75% in the first 20 Policy years and 4.25%
thereafter. A loan plus accrued interest ("Indebtedness") may be repaid at the
discretion of the Owner in whole or in part in accordance with the terms of
the Policy. The Owner may obtain a Policy loan in the maximum amount of the
Loan Value less any existing Indebtedness.
5
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While a loan is outstanding, the rate of interest credited to the Account
Value because of the loan will usually be different than the net investment
experience of the Subaccounts. Therefore, the Account Value, the Surrender
Value and any death benefit above the current Total Sum Insured are
permanently affected by any loan.
IS THERE A SHORT-TERM CANCELLATION RIGHT?
The Owner may surrender a Policy, for any reason, by delivering or mailing
it, within 10 days after receipt of the Policy by the Owner, to JHVLICO's Home
Office, or to the agent or agency office through which it was delivered.
Coverage under the Policy will be cancelled immediately as of the date of such
mailing or delivery. Any premium paid on it will be refunded. If required by
state law, the refund will equal the Account Value at the end of the Valuation
Period in which the Policy is received plus all charges or deductions made
against premiums plus an amount reflecting charges against the Subaccounts and
the investment management fee of the Funds.
WHAT INVESTMENT TRANSFERS ARE ALLOWED AN OWNER?
The Owner may transfer the Account Value among the variable Subaccounts or
into the Fixed Account at any time. Transfers out of the Fixed Account,
however, are subject to restrictions.
ARE THE BENEFITS UNDER A POLICY SUBJECT TO FEDERAL INCOME TAX?
The benefits under Policies described in this Prospectus are expected to
receive the same tax treatment under the Internal Revenue Code of 1986 as
benefits under traditional fixed-benefit life insurance policies. Thus, death
benefits payable under the Policies will not be included in the beneficiary's
gross income. Also, the Owner is not taxed on interest and gains under the
Policy unless and until values are actually received through withdrawal,
surrender, or other distributions.
Under Federal tax law, distributions from Policies on which premiums greater
than a "7-pay" premium limit (as defined in the law) have been paid, will be
subject to special taxation. See "Premiums--7-Pay Premium Limit" and "Policy
Proceeds" for a discussion of how the "7-pay" premium limit may be exceeded
under a Policy. A distribution on such a Policy (called a "modified
endowment") will be taxed to the extent there is any income (gain) to the
Owner and an additional penalty tax may be imposed on the taxable amount.
JHVLICO AND JOHN HANCOCK
JHVLICO, a stock life insurance company chartered in 1979 under
Massachusetts law, is authorized to transact a life insurance and annuity
business in Massachusetts and all other states, except New York. JHVLICO began
selling variable life insurance policies in 1980.
JHVLICO is a wholly-owned subsidiary of John Hancock, a company chartered in
Massachusetts in 1862. Its Home Office is at John Hancock Place, Boston,
Massachusetts 02117. John Hancock's assets are over $45 billion and it has
invested over $380 million in JHVLICO in connection with JHVLICO's
organization and operations. It is anticipated that John Hancock will from
time to time make additional capital contributions to JHVLICO to enable it to
meet its reserve requirements and expenses in connection with its business,
and John Hancock is committed to make additional capital contributions if
necessary to ensure that JHVLICO maintains a positive net worth.
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THE ACCOUNT AND THE SERIES FUNDS
THE ACCOUNT
The Account, a separate account established under Massachusetts law, meets
the definition of "separate account" under the Federal securities laws and is
registered as a unit investment trust under the Investment Company Act of 1940
("1940 Act").
The Account's assets are the property of JHVLICO. Each Policy provides that
the portion of the Account's assets equal to the reserves and other
liabilities under the Policy shall not be chargeable with liabilities arising
out of any other business JHVLICO may conduct. In addition to the assets
attributable to variable life policies, the Account's assets include assets
derived from charges made by JHVLICO. From time to time these additional
assets may be transferred in cash by JHVLICO to its general account. Before
making any such transfer, JHVLICO will consider any possible adverse impact
the transfer might have on any Subaccount. Additional premiums are charged for
Policies where the insured is classified as a substandard risk and a portion
of these premiums is allocated to the Account.
The Account is registered with the Securities and Exchange Commission (the
"Commission") under the 1940 Act. Such registration does not involve
supervision by the Commission of the management or policies of the Account,
JHVLICO or John Hancock.
The assets in each variable Subaccount are invested in corresponding
Portfolios of the Funds, but the assets of one variable Subaccount are not
necessarily legally insulated from liabilities associated with another
variable Subaccount. New variable Subaccounts may be added or existing
variable Subaccounts may be deleted as new Portfolios are added to or deleted
from the Funds and made available to Owners.
THE SERIES FUNDS
Each Fund is a "series" type of mutual fund registered with the Commission
under the 1940 Act as an open-end diversified management investment company.
Each Fund serves as the investment medium for the Account and other unit
investment trust separate accounts established for other variable life
insurance policies and variable annuity contracts. (See the attached Fund
Prospectuses for a description of a need to monitor for possible conflicts and
other consequences.) A very brief summary of the investment objectives of each
Portfolio is set forth below.
Growth and Income (formerly Stock) Portfolio. The investment objective of
this Portfolio is to achieve intermediate and long-term growth of capital,
with income as a secondary consideration. This objective will be pursued by
investments principally in common stocks (and in securities convertible into
or with rights to purchase common stocks) of companies believed by management
to offer growth potential over both the intermediate and long-term.
Large Cap Growth (formerly Select Stock) Portfolio. The investment objective
of this Portfolio is to achieve above-average capital appreciation through the
ownership of common stocks of companies believed by management to offer above-
average capital appreciation opportunities. Current income is not an objective
of the Portfolio.
Sovereign Bond (formerly Bond) Portfolio. The investment objective of this
Portfolio is to provide as high a level of long-term total rate of return as
is consistent with prudent investment risk, through investment in a
diversified portfolio of freely marketable debt securities. Total rate of
return consists of current income, including interest and discount accruals,
and capital appreciation.
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Money Market Portfolio. The investment objective of this Portfolio is to
provide maximum current income consistent with capital preservation and
liquidity. It seeks to achieve this objective by investing in a managed
portfolio of high quality money market instruments.
Managed Portfolio: to achieve maximum long-term total return consistent with
prudent investment risk. Investments will be made in common stocks,
convertibles and other fixed income securities and in money market
instruments.
Real Estate Equity Portfolio: to provide above-average income and long-term
growth of capital by investment principally in equity securities of companies
in the real estate and related industries.
International Equities (formerly International) Portfolio: to achieve long-
term growth of capital by investing primarily in foreign equity securities.
Special Opportunities Portfolio: to achieve long-term capital appreciation
by emphasizing investments in equity securities of issuers in various economic
sectors.
Short-Term U.S. Government Portfolio: to provide a high level of current
income consistent with the maintenance of principal, through investment in a
portfolio of short-term U.S. Treasury securities and U.S. Government agency
securities.
Equity Index Portfolio: to provide investment results that correspond to the
total return of the U.S. market as represented by the S&P 500 utilizing common
stocks that are publicly traded in the United States.
Large Cap Value Portfolio: to provide substantial dividend income, as well
as long-term capital appreciation, through investments in the common stocks of
established companies believed to offer favorable prospects for increasing
dividends and capital appreciation.
Mid Cap Growth Portfolio: to provide long-term growth of capital through a
non-diversified portfolio investing largely in common stocks of mid-sized
companies.
Mid Cap Value Portfolio: to provide long-term growth of capital primarily
through investment in the common stocks of medium capitalization companies
believed by management to sell at a discount to their intrinsic value.
Small Cap Growth Portfolio: to provide long-term growth of capital through a
diversified portfolio investing primarily in common stocks of small
capitalization emerging growth companies.
Small Cap Value Portfolio: to provide long-term growth of capital by
investing in a well diversified portfolio of equity securities of small
capitalization companies exhibiting value characteristics.
Strategic Bond Portfolio: to provide a high total return consistent with
moderate risk of capital and maintenance of liquidity, from a portfolio of
domestic and international fixed income securities.
International Opportunities Portfolio: to provide capital appreciation
through investments in common stocks of primarily well-established, non-United
States companies.
International Balanced Portfolio: to maximize total U.S. dollar return,
consisting of capital appreciation and current income, through investment in
non-U.S. equity and fixed income securities.
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John Hancock acts as the investment manager for the above Portfolios, and
John Hancock's indirectly owned subsidiary, Independence Investment
Associates, Inc., with its principal place of business at 53 State Street,
Boston, Massachusetts, provides sub-investment advice with respect to the
Growth and Income, Large Cap Stock, Equity Index, Managed, Real Estate Equity
and Short-Term U.S. Government Portfolios. Another indirectly owned
subsidiary, John Hancock Advisers, Inc., located at 101 Huntington Avenue,
Boston, Massachusetts, and its subsidiary, John Hancock Advisers
International, Limited, located at 34 Dover Street, London, England, provide
sub-investment advice with respect to the International Equities Portfolio,
and John Hancock Advisers, Inc. does likewise with respect to the Sovereign
Bond, Small Cap Growth and Special Opportunities Portfolios.
T. Rowe Price Associates, Inc., located at 100 East Pratt St., Baltimore, MD
21202, provides sub-investment advice with respect to the Large Cap Value
Portfolio and, together with its subsidiary, Rowe Price-Fleming International,
Inc., also located at 100 East Pratt St., Baltimore, MD 21202, provides sub-
investment advice with respect to the International Opportunities Portfolio.
Invesco Management and Research located at 101 Federal Street, Boston, MA
02110, is the sub-investment adviser to the Small Cap Value Portfolio. Janus,
with its principal place of business at 100 Filmore Street, Denver, CO 80206,
is the sub-investment adviser to the Mid Cap Growth Portfolio. Neuberger and
Berman Investment Management of 605 Third Avenue, New York, NY 10158, provides
sub-investment advice to the Mid Cap Value Portfolio. J.P. Morgan Investment
Management Inc., located at 522 Fifth Avenue, New York, NY 10036, provides
investment advice with respect to the Strategic Bond Portfolio and Brinson
Partners, Inc., of 209 S. LaSalle Street, Chicago, IL 60604, does likewise
with respect to the International Balanced Portfolio.
Edinburgh Overseas Equity Portfolio. Its investment objective is long-term
capital appreciation with reasonable investment risk through active management
and investment in common stock and common stock equivalents of foreign
issuers. Current income, if any, is incidental.
Turner Core Growth Portfolio. The investment objective of this Portfolio is
to seek long-term capital appreciation through a diversified portfolio of
common stocks that show strong earnings potential with reasonable market
prices.
Frontier Capital Appreciation Portfolio. This Portfolio seeks maximum
capital appreciation through investment in common stock of companies of all
sizes, with emphasis on stocks of small- to-medium-capitalization companies.
Importance is placed on growth and price appreciation, rather than income.
M Financial Investment Advisers, Inc., acts as the investment manager for
the three Portfolios described above. Edinburgh Fund Managers PLC, North
America provides sub-investment advice to the Edinburgh Overseas Equity
Portfolio; Turner Investment Partners, Inc. provides sub-investment advice to
the Turner Core Growth Portfolio; and Frontier Capital Management Company,
Inc., provides sub-investment advice to the Frontier Capital Appreciation
Portfolio.
JHVLICO will purchase and redeem Fund shares for the Account at their net
asset value without any sales or redemption charges. Shares of the Fund
represent an interest in one of the Portfolios which corresponds to a variable
Subaccount of the Account. Any dividend or capital gains distributions
received by the Account will be reinvested in Fund shares at their net asset
value as of the dates paid.
On each Valuation Date, shares of each Portfolio are purchased or redeemed
by JHVLICO for each variable Subaccount based on, among other things, the
amount of net premiums allocated to the variable Subaccount,
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distributions reinvested, transfers to, from and among variable Subaccounts,
all to be effected as of that date. Such purchases and redemptions are
effected at the net asset value per Fund share for each Portfolio determined
on that same Valuation Date. A Valuation Date is any date on which JHVLICO is
open for business, the New York Stock Exchange is open for trading and on
which the Fund values its shares. A Valuation Period is that period of time
from the beginning of the day following a Valuation Date to the end of the
next following Valuation Date.
A full description of each Fund, its investment objectives, policies and
restrictions, its charges, expenses and all other aspects of its operation is
contained in the attached Prospectuses and the statement of additional
information referred to therein, which should be read together with this
Prospectus.
THE FIXED ACCOUNT
An Owner may allocate premiums to the Fixed Account or transfer all or a
part of the Account Value under a Policy to the Fixed Account. The amount so
allocated or transferred will become a part of JHVLICO's general account
assets. JHVLICO's general account consists of assets owned by JHVLICO other
than those in the Account and in other separate accounts that have been or may
be established by JHVLICO. Subject to applicable law, JHVLICO has sole
discretion over the investment of assets of the general account, and Owners do
not share in the investment experience of those assets. Instead, JHVLICO
guarantees that the Account Value allocated to the Fixed Account will accrue
interest daily at an effective annual rate of at least 4% without regard to
the actual investment experience of the general account. Transfers from the
Fixed Account are subject to certain limitations. See "Transfers Among
Subaccounts".
The Account Value in the Fixed Account is equal to the portion of the net
premiums allocated to it, plus any amounts transferred to it and interest
credited to it, minus any charges deducted from it or partial withdrawals or
amounts transferred from it. JHVLICO guarantees that interest credited to the
Account Value in the Fixed Account will not be less than an effective annual
rate of 4%. JHVLICO may, in its sole discretion, credit higher rates although
it is not obligated to do so. The Owner assumes the risk that interest
credited will not exceed 4% per year. Upon request and in the annual
statement, JHVLICO will inform Owners of the then-applicable rates. The rate
of interest declared with respect to any amount in the Fixed Account may
depend on when that amount was first allocated to the Fixed Account.
Because of exemptive and exclusionary provisions, interests in JHVLICO's
general account have not been registered under the Securities Act of 1933 and
the general account has not been registered as an investment company under the
1940 Act. Accordingly, neither the general account nor any interests therein
are subject to the provisions of these Acts, and JHVLICO has been advised that
the staff of the Securities and Exchange Commission has not reviewed the
disclosure in this Prospectus relating to the Fixed Account. Disclosure
regarding the Fixed Account may, however, be subject to certain generally-
applicable provisions of the Federal securities laws relating to accuracy and
completeness of statements made in prospectuses.
POLICY PROVISIONS AND BENEFITS
REQUIREMENTS FOR ISSUANCE OF POLICY
The Policy is generally available with a minimum Total Sum Insured at issue
of $500,000 and a minimum Basic Sum Insured of $100,000. At the time of issue,
the insured must be age 20 through 85. All persons insured must meet certain
health and other criteria called "underwriting standards". The smoking status
of the insured is reflected in the insurance charges made. Policies issued in
certain jurisdictions or in connection with certain employee benefit plans
will not directly reflect the sex of the insured in either the premium rates
or the charges
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or values under the Policy. Accordingly, the illustrations set forth in this
Prospectus may differ for such Policies. Amounts of coverage that JHVLICO will
accept under the Policies may be limited by JHVLICO's underwriting and
reinsurance procedures as in effect from time to time.
PREMIUMS
Payment Flexibility. Premiums are flexible. The Owner may choose the amount
and frequency of premium payments, so long as each premium payment is at least
$100 and meets the other requirements described below.
Minimum First Premium. The amount of premium required at the time of issue
is determined by JHVLICO, and depends on the age, sex, smoking status, and
underwriting class of the insured at issue, the Policy's Basic Sum Insured at
issue, and any additional benefits selected. The Minimum First Premium must be
received by JHVLICO at its Home Office before the Policy is in full force and
effect. See "Death Benefits". There is no grace period for the payment of the
Minimum First Premium.
Minimum Premiums. If the Policy's Surrender Value at the beginning of any
Policy month is insufficient to pay the monthly Policy charges then due,
JHVLICO will notify the Owner and the Policy will enter a grace period, unless
the Guaranteed Minimum Death Benefit is in effect. If premiums sufficient to
pay at least three months' estimated charges are not paid by the end of the
grace period, the Policy will lapse. See "Default".
Planned Premium Schedule. At the time of issue, the Owner may designate a
Planned Premium schedule for the amount and frequency of premium payments.
JHVLICO will send billing statements for the amount chosen at the frequency
chosen. The Owner may change the Planned Premium after issue. The Owner may
also pay a premium in excess of the Planned Premium, subject to the
limitations described below. At the time of Policy issuance, JHVLICO will
determine whether the Planned Premium schedule will exceed the 7-Pay limit
discussed below. If so, JHVLICO will not issue the Policy unless the Owner
signs a form acknowledging that fact.
Other Premium Limitations. Federal tax law requires a minimum death benefit
in relation to Account Value. See "Death Benefits--Definition of Life
Insurance". The death benefit of the Policy will be increased if necessary to
ensure that the Policy will continue to satisfy this requirement. Also, as
described under "Death Benefits--Optional Extra Death Benefit Feature," the
Optional Extra Death Benefit feature may result in a death benefit under
Option M that is higher than the Total Sum Insured. If the payment of a given
premium will cause the Policy Account Value to increase to such an extent that
an increase in death benefit is necessary to satisfy federal tax law
requirements, or pursuant to the Optional Extra Death Benefit, JHVLICO has the
right to not accept the excess portion of that premium payment, or to require
evidence of insurability before that portion is accepted. In no event,
however, will JHVLICO refuse to accept any premium necessary to maintain the
Guaranteed Minimum Death Benefit in effect under a Policy.
Whether or not the Guaranteed Minimum Death Benefit is in effect, JHVLICO
also reserves the right to limit premium payments above the amount of the
cumulative Guaranteed Minimum Death Benefit premiums. JHVLICO will not,
however, refuse to accept any premium payment that is required to keep the
Policy from lapsing.
Guaranteed Minimum Death Benefit Premiums. A Guaranteed Minimum Death
Benefit feature may apply during the first ten Policy years and, if the Owner
has elected, thereafter. See "Death Benefits". The Guaranteed
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Minimum Death Benefit Premiums required to maintain this benefit in force
depend on the issue age, sex, smoking status, and underwriting class of the
insured at issue and the Basic Sum Insured at issue. If there is no Additional
Sum insured at issue, the Guaranteed Minimum Death Benefit Premium will be
equal to the Policy's target premium (discussed under "Sales Charge"). If
there is an Additional Sum Insured at issue, such Premium will be equal to the
greater of (i) the target premium for the Policy and (ii) 50% of what the
target premium would have been had the Policy been issued with the Basic Sum
Insured at issue being equal to the Total Sum Insured at issue. To keep the
Guaranteed Minimum Death Benefit in effect, the amount of actual premiums
paid, accumulated at 4% interest, minus any withdrawals, also accumulated at
4% interest, must on each Policy anniversary be at least equal to the
Guaranteed Minimum Death Benefit Premiums due to date accumulated at 4%
interest. If this test is not satisfied on any Policy anniversary, JHVLICO
will notify the Owner of the shortfall and a 61-day grace period will commence
as of that anniversary. This notice will be mailed to the Owner's last-known
address at least 31 days prior to the end of the grace period. If JHVLICO does
not receive payment for the amount of the deficiency by the end of the grace
period, the Guaranteed Minimum Death Benefit feature will lapse unless and
until restored as described under "Default--Reinstatement".
Billing, Allocation of Premium Payments (Investment Rule). The Owner may at
any time elect to be billed by JHVLICO for an amount of premium other than the
Guaranteed Minimum Death Benefit Premium. The Owner may also elect to be
billed for premiums on an annual, semi-annual, quarterly or monthly basis. All
premiums are payable at JHVLICO's Home Office.
Any premium payment will be processed by JHVLICO as of the end of the
Valuation Period in which it is received, unless one of the three exceptions
noted below is applicable. Each premium payment will be reduced by the premium
processing charge, the state premium tax charge, any applicable sales charge,
and the Federal DAC Tax charge. See "Charges and Expenses". The remainder is
the net premium.
The Owner at the time of application must elect an Investment Rule which
will allocate net premiums and any credits to any of the Subaccounts. The
Owner must select allocation percentages in whole numbers, and the total
allocated must equal 100%. The Owner may thereafter change the Investment Rule
prospectively at any time. The change will be effective as to any net premiums
and credits applied after receipt at JHVLICO's Home Office of notice
satisfactory to JHVLICO. Notwithstanding the Investment Rule, all net premiums
credited to Account Value as of a date prior to the end of the Valuation
Period that includes the 20th day following the date of issue will
automatically be allocated to the Money Market Subaccount. At the end of that
Valuation Period, the Policy's Account Value will be reallocated automatically
among the Subaccounts in accordance with the Investment Rule chosen by the
Owner.
There are three exceptions to the normal practice of processing a premium
payment as of the end of the Valuation Period in which it is received:
(1) A payment received prior to a Policy's date of issue will be
processed as if received on the Valuation Date immediately
preceding the date of issue.
(2) If the Minimum First Premium is not received prior to the date of
issue, each payment received thereafter will be processed as if
received on the Valuation Date immediately preceding the date of
issue until all of the Minimum First Premium is received.
(3) That portion of any premium that we delay accepting as described
under "Other Premium Limitations" above, or "7-Pay Premium Limit"
below, will be processed as of the end of the Valuation Period in
which we accept that amount.
7-Pay Premium Limit. Federal tax law modifies the tax treatment of certain
Policy distributions such as loans, surrenders, partial surrenders, and
withdrawals. The application of this modified treatment to any Owner depends
upon whether premiums have been paid at any time during the first 7 Policy
years that exceed a "7-pay"
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premium limit as defined in the law. The "7-pay" premium is greater than the
Guaranteed Minimum Death Benefit Premium . The 7-pay limit is the total of net
level premiums that would have been payable at any time for the Policy to be
fully paid-up after the payment of 7 level annual premiums. If the total
premiums paid exceed the 7-pay limit, the Policy will be treated as a
"modified endowment", which means that the Owner will be subject to tax to the
extent of any income (gain) on any distributions made from the Policy. A
material change in the Policy will result in a new 7-pay limit and test
period. A reduction in the Policy's benefits within the 7-year period
following issuance of, or a material change in, the Policy may also result in
the application of the modified endowment treatment. See "Policy Proceeds"
under "Tax Considerations". If JHVLICO receives any premium payment that will
cause a Policy to become a modified endowment, the excess portion of that
premium payment will not be accepted unless the Owner signs an acknowledgment
of that fact. When it identifies such an excess premium, JHVLICO sends the
Owner immediate notice and refunds the excess premium if it has not received
notice of the acknowledgment by the time the premium payment has had a
reasonable time to clear the banking system, but in no case longer than two
weeks.
ACCOUNT VALUE AND SURRENDER VALUE
Amount of Account Value. The Account Value increases or decreases depending
upon a number of factors, such as the applicable Subaccount's investment
experience, the proportion of the Account Value invested in each Subaccount
and the interest credited to any Loan Account established upon the making of a
Policy loan. In general the Account Value for any day equals the Account Value
for the previous day, decreased by charges against the Account Value,
increased or decreased by the investment experience of the Subaccounts and
increased by net premiums received. No minimum amount of Account Value is
guaranteed.
A Policy loan will not affect the total amount of Account Value at the time
the loan is made but will result in a different rate of return being credited
to the Loan Account portion of the Account Value.
Amount of Surrender Value. The Surrender Value will be the Account Value
less any Indebtedness.
When Policy May Be Surrendered. A Policy may be surrendered for its
Surrender Value at any time while the insured is living and the Policy is not
in a grace period. Surrender takes effect and the Surrender Value is
determined as of the end of the Valuation Period in which occurs the later of
receipt at JHVLICO's Home Office of a signed request or the surrendered
Policy.
Partial Withdrawal of Surrender Value. The Owner may request withdrawal of
part of the Surrender Value in accordance with JHVLICO's rules then in effect.
Any withdrawal must be at least $1,000 and is subject to an administrative
charge of $20.
An Owner may request a partial withdrawal of Surrender Value at any time
while the insured is living, provided that the Policy is not in a grace
period. This privilege, which reduces the Account Value by the amount of the
withdrawal and the associated charge, may not be used to reduce the Account
Value below the amount JHVLICO estimates will be required to pay three months'
charges under the Policy as they fall due. The withdrawal will be effective as
of the end of the Valuation Period in which JHVLICO receives written notice
satisfactory to it at its Home Office.
A withdrawal will reduce any Option A or Option M Sum Insured by the amount
withdrawn. JHVLICO reserves the right to refuse any withdrawal request that
would cause the Policy's Total Sum Insured to fall below $500,000.
An amount equal to the Account Value withdrawn will be removed from each
Subaccount in the same proportion as the Account Value is then allocated among
the Subaccounts. A withdrawal is not a loan and, once made, cannot be repaid.
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A surrender or withdrawal may have significant tax consequences. See "Tax
Considerations".
Optional Enhanced Cash Value Rider. The Owner may elect an Enhanced Cash
Value Rider to be attached to the Policy. This rider allows for the Owner to
receive an Enhanced Cash Value benefit (in addition to the Surrender Value) if
the Policy is surrendered within the first nine policy years. The Enhanced
Cash Value benefit is set forth in the specification pages of the Policy.
There is a charge for the rider equal to 2% of premium paid in the first
Policy year up to the annual target premium. This charge is assessed in the
first Policy year only.
The Enhanced Cash Value benefit is included in the Account Value when
calculating the death benefit and insurance charges associated with the
Policy. The amount available for Withdrawal and the Loan Value of the policy
is based on the Surrender Value, and neither will in any way be increased due
to the Enhanced Cash Value Rider.
DEATH BENEFITS
The death benefit proceeds are payable when the insured dies while the
Policy is in effect. The death benefit proceeds will equal the death benefit
of the Policy, plus any additional rider benefits then due, minus any
Indebtedness. If the insured dies during a grace period, JHVLICO will also
deduct any overdue monthly deductions.
The death benefit payable depends on the current Total Sum Insured and the
death benefit option selected by the Owner at the time the Policy is issued,
as follows:
OPTION A: The death benefit equals the current Total Sum Insured, subject
to any increases described below under "Definition of Life Insurance", and
reduced by the amount of any partial withdrawals that have been made over
the life of the Policy.
OPTION B: The death benefit is the current Total Sum Insured, plus the
Policy Account Value at the end of the Valuation Period in which the
insured dies. This death benefit is a varying amount and fluctuates with
the amount of the Account Value. This death benefit is also subject to any
increase described below under "Definition of Life Insurance".
OPTION M: The death benefit is the current Total Sum Insured, subject to
any increases described below under "Optional Extra Death Benefit Feature"
and "Definition of Life Insurance" and reduced by the amount of any partial
withdrawals that have been made over the life of the Policy.
The Total Sum Insured is the Basic Sum Insured, plus the amount of any
Additional Sum Insured (discussed below).
Owners who prefer to have favorable investment experience reflected in
increased insurance coverage should choose Option B or M. As between the two,
the anticipated increase in insurance coverage is likely to occur later under
Option M. Owners who prefer to have insurance coverage that generally does not
vary in amount and lower cost of insurance charges should choose Option A.
Optional Extra Death Benefit Feature. Pursuant to this feature the death
benefit under Option M will be no less than the amount of the Policy Account
Value multiplied by a factor specified in the Policy. The factor is based on
the insured's age. The optional Extra Death Benefit feature may result in an
Option M death benefit that is higher than the minimum death benefit required
under Federal tax law, as described below under "Definition of Life
Insurance." Although there is no special charge for the optional Extra Death
Benefit, the
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monthly cost of insurance deductions will be based on the amount of death
benefit then in effect, including any additional death benefit pursuant to
this option. An election of this option must be made at the time of
application for the Policy.
Definition of Life Insurance. Federal tax law requires a minimum death
benefit in relation to cash value for a policy to qualify as life insurance.
The death benefit of the Policy will be increased if necessary to ensure that
the Policy will continue to qualify as life insurance. One of two tests under
current Federal tax law can be used to determine if a policy complies with the
definition of life insurance in Section 7702 of the Code. The test which will
apply to the Policy is chosen in the application for the Policy.
The "guideline premium and cash value corridor" test limits the amount of
premiums payable under a policy to a certain amount for an insured of a
particular age and sex. The test also applies a prescribed "Corridor Factor"
to determine a minimum ratio of death benefit to Account Value. A complete
list of Corridor Factors is set forth in the Policy under the heading of
Required Additional Death Benefit Factors. The "guideline premium and cash
value corridor" test can be used with Option A and Option B policies.
The "cash value accumulation test" also limits the amount of premiums
payable under a policy to a prescribed amount, using a minimum ratio of death
benefit to a policy's Account Value, employing a standard "net single premium"
computed in compliance with the Code. If the Account Value under a policy is
at any time greater than the net single premium at the insured's age and sex
for the proposed death benefit, the death benefit will be increased
automatically by multiplying the Account Value by a "Death Benefit Factor"
computed in compliance with the Code. A complete list of Death Benefit Factors
is set forth in the Policy under the heading of Required Additional Death
Benefit Factors. The "cash value accumulation test" can be used with Option A,
Option B and Option M policies.
If the Account Value is reduced (e.g. by withdrawals, charges, or adverse
investment performance) at a time when a minimum death benefit under Section
7702 is in effect, such minimum death benefit will also be reduced.
Guaranteed Minimum Death Benefit. During the first 10 Policy years (and
thereafter if the Owner elects) the Basic Sum Insured is guaranteed not to
lapse, provided that the amount of premiums paid through each Policy
anniversary, accumulated at 4% interest, minus any withdrawals, also
accumulated at 4% interest, is at least equal to the Guaranteed Minimum Death
Benefit Premiums accumulated at 4% interest. At any time when this feature is
not in force, the death benefit of the Policy is not guaranteed. The election
to extend the Guaranteed Minimum Death Benefit beyond ten Policy years must be
made at the time of Policy issuance. The Owner may revoke the election at any
time. JHVLICO imposes a charge after the tenth Policy year if the Owner elects
to extend this Benefit.
Additional Sum Insured. The Owner may apply for an amount of Additional Sum
Insured under the Policy, pursuant to which an additional amount of death
benefit will be paid upon the death of the insured under the Policy.
Purchasers of a Policy should consider various factors in determining whether
to elect coverage in the form of Basic Sum Insured or in the form of
Additional Sum Insured.
The Basic Sum Insured generally cannot be increased or decreased after
issue, whereas the amount of Additional Sum Insured can be decreased, or, upon
application and submission of evidence of insurability, increased subsequent
to Policy issuance. JHVLICO may refuse to accept any request to reduce the
Additional Sum Insured (a) that would cause the Policy's current Total Sum
Insured to fall below $500,000 or (b) if immediately following the reduction,
the Policy's current death benefit would reflect an increase necessary for the
Policy to continue to qualify as life insurance (see "Death Benefits--
Definition of Life Insurance") or an increase pursuant to the optional Extra
Death Benefit feature. Any increase or decrease in Additional Sum Insured will
become
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effective at the beginning of the first Policy month after JHVLICO receives in
good order at its Home Office all information necessary to process the change,
and, in the case of an increase in coverage, approves the change.
Any decision by the Owner to modify the amount of Additional Sum Insured
coverage after issue can have significant tax consequences. See "Tax
Considerations--Policy Proceeds".
Also, the Owner may elect among several forms of Additional Sum Insured
coverage at the time the Owner applies for it: a level amount of coverage; an
amount of coverage that increases on each Policy anniversary up to a
prescribed limit; an amount of coverage that increases on each Policy
anniversary to the amount of premiums paid during prior years plus the Planned
Premium for the current year, subject to certain limits; or a combination of
those forms of coverage.
The amount of target premium under a Policy is not affected by the amount of
the Additional Sum Insured. Accordingly, the amount of sales charge paid by
the Owner and the amount of compensation paid to the selling insurance agent
may be less if coverage is included as Additional Sum Insured, rather than as
Basic Sum Insured.
The amount of any Additional Sum Insured is not included in any Guaranteed
Minimum Death Benefit. Therefore, if the Policy's Account Value is
insufficient to pay the monthly charges as they fall due (including the
charges for the Additional Sum Insured) the Additional Sum Insured coverage
will lapse, even if the Basic Sum Insured stays in effect pursuant to the
Guaranteed Minimum Death Benefit feature.
The Additional Sum Insured at issue is limited to 400% of the Basic Sum
Insured. Generally, an Owner will incur lower sales charges and have more
flexible coverage with respect to the Additional Sum Insured than with respect
to the Basic Sum Insured. On the other hand, for Owners that wish to take
advantage of the Guaranteed Mimimum Death Benefit, the proportion of the
Policy's Sum Insured that is guaranteed can be increased by taking out more
coverage as Basic Sum Insured at the time of Policy issue.
Temporary Coverage Prior to Policy Delivery. If a specified amount of
premium is paid with the application for a Policy, temporary term coverage may
be available prior to the time that coverage under the Policy takes effect.
Temporary term coverage is subject to the terms and conditions described in
the application for a Policy.
TRANSFERS AMONG SUBACCOUNTS
The Owner may reallocate the amounts held for the Policy in the Subaccounts
with no charge at any time, except as noted below. The Owner may either (1)
use percentages (in whole numbers) to be transferred among Subaccounts or (2)
designate the dollar amount of funds to be transferred among Subaccounts. The
reallocation must be such that the total in the Subaccounts after reallocation
equals 100% of Account Value. Transfers out of a variable Subaccount will be
effective at the end of the Valuation Period in which JHVLICO receives at its
Home Office notice satisfactory to JHVLICO.
Transfers out of the Fixed Account to the variable Subaccounts are permitted
only once each Policy year and only during the 31-day period beginning on the
Policy anniversary. Transfers out of the Fixed Account may be requested from
60 days before to 30 days after the Policy anniversary. If received on or
before the Policy
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anniversary, requests for transfer out of the Fixed Account will be processed
on the Policy anniversary (or the next Valuation Date if the Policy
anniversary does not occur on a Valuation Date); if received after the Policy
anniversary, they will be processed at the end of the Valuation Period in
which JHVLICO receives the request at its Home Office. (JHVLICO reserves the
right to defer such Fixed Account transfers for six months.) If an Owner
requests a transfer out of the Fixed Account 61 days or more prior to the
Policy anniversary, that portion of the reallocation will not be processed and
the Owner's confirmation statement will not reflect a transfer out of the
Fixed Account as to such request. Transfers among variable Subaccounts and
transfers into the Fixed Account may be requested at any time. A maximum of
20% of Fixed Account assets or, if greater, $500 may be transferred out of the
Fixed Account in any Policy year. Currently, there is no minimum amount limit
on transfers out of the Fixed Account, but JHVLICO reserves the right to
impose such a limit in the future.
No transfers may be made while the Policy is in a grace period.
Telephone Transfers and Policy Loans. Once a written authorization is
completed by the Owner, the Owner may request a transfer or policy loan by
telephoning 1-800-732-5543. During periods of heavy telephone usage,
implementing a telephone transfer or policy loan may be difficult. If an Owner
is unable to reach JHVLICO via the above number, the Owner should send a
written request via fax to 1-800-621-0448. (Any requests via fax are
considered telephone requests and are bound by the conditions in the Owner's
signed telephone authorization form.) Any fax request should include the
Owner's name, daytime telephone number, Policy number and, in the case of
transfers, the names of the subaccounts from which and to which money will be
transferred. The right to discontinue telephone transactions at any time
without notice to Owners is specifically reserved.
An Owner who authorizes telephone transactions will be liable for any loss,
expense or cost arising out of any unauthorized or fraudulent telephone
instructions which JHVLICO reasonably believes to be genuine, unless such
loss, expense or cost is the result of JHVLICO's mistake or negligence.
JHVLICO employs procedures which provide adequate safeguards against the
execution of unauthorized transactions, and which are reasonably designed to
confirm that instructions received by telephone are genuine. These procedures
include requiring personal identification, tape recording calls, and providing
written confirmation to the Owner. If JHVLICO does not employ reasonable
procedures to confirm that instructions communicated by telephone are genuine,
it may be liable for any loss due to unauthorized or fraudulent instructions.
LOAN PROVISIONS AND INDEBTEDNESS
Loan Provisions. Loans may be made at any time a Loan Value is available,
the insured is alive and the Policy is not in a grace period. The Owner may
borrow money, assigning the Policy as the only security for the loan, by
completion of a form satisfactory to JHVLICO or, if the telephone transaction
authorization form has been completed by telephone. The Loan Value will be
equal to (a) minus (b) minus (c) where: (a) is the Account Value, (b) is
twelve times the sum of all monthly charges deducted from the Account Value
for the Policy month in which the loan is obtained; and (c) is (a) above minus
(b) above multiplied by .75% in Policy years 1-20 and .25% thereafter.
Interest charged on any loan will accrue and compound daily at an effective
annual rate of 4.75% in the first 20 Policy years and 4.25% thereafter.
The amount of any outstanding loan plus accrued interest is called the
"Indebtedness". The amount of the loan available will be the Loan Value less
any existing Indebtedness. A loan will not be permitted unless it is at least
$1,000. A loan may be repaid in full or in part at any time before the
insured's death and while the Policy is not in a grace period. When a loan is
made, an amount equal to the loan proceeds will be transferred out of the
Account. This amount is allocated to a portion of JHVLICO's general account
called "Loan Assets". Each
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Subaccount will be reduced in the same proportion as the Account Value is then
allocated among the Subaccounts. Upon each loan repayment, the same
proportionate amount of the entire loan as was borrowed from the Fixed Account
will be repaid to the Fixed Account. The remainder of the loan repayment will
be allocated to the appropriate Subaccounts as stipulated in the then current
Investment Rule. For example, if the entire loan outstanding is $3000 of which
$1000 was borrowed from the Fixed Account, then upon a repayment of $1500,
$500 would be allocated to the Fixed Account and the remaining $1000 would be
allocated to the appropriate Subaccounts as stipulated in the then current
Investment Rule. If an Owner wishes any payment to constitute a loan repayment
(rather than a premium payment), the Owner must so specify.
Effect of Loan and Indebtedness. While the Indebtedness is outstanding, that
portion of the Account Value that is in Loan Assets is credited with interest
at a rate that is .75% less than the loan interest rate for the first 20
Policy years and .25% less than the loan interest rate for all Policy years
thereafter. The rate credited to Loan Assets will usually be different than
the net return for the Subaccounts. Since the Loan Assets and the remaining
portion of the Account Value will generally have different rates of investment
return, the Account Value, the Surrender Value, and any death benefit above
the Total Sum Insured are all permanently affected by any Indebtedness,
whether or not it is repaid in whole or in part. The amount of any
Indebtedness is subtracted from the amount otherwise payable when the Policy
proceeds become payable.
Whenever the Indebtedness equals or exceeds the Account Value, the Policy
terminates 31 days after notice has been mailed by JHVLICO to the Owner and
any assignee of record at their last known address specifying the minimum
amount which must be paid to keep the Policy inforce beyond that period,
unless a repayment of at least the amount specified in the notice is made
within that period.
Tax Considerations. If the Policy is a modified endowment at the time a loan
is made, that loan may have significant tax consequences. See "Tax
Considerations".
DEFAULT
Premium Grace Period, Default and Lapse. Unless the Guaranteed Minimum Death
Benefit is in force, at the beginning of each Policy month JHVLICO determines
whether the Account Value, net of any Indebtedness, is sufficient to pay all
monthly charges then due under the Policy. If not, the Policy is in default
and JHVLICO will notify the Owner of the amount estimated to be necessary to
pay three months' deductions, and a grace period will be in effect until 61
days after the date the notice was mailed. If JHVLICO does not receive payment
of at least this amount by the end of the grace period, the Policy will lapse,
and any remaining amount owed to the Owner as of the date of lapse will be
paid to the Owner.
If the Guaranteed Minimum Death Benefit is in effect and the Policy provides
for an Additional Sum Insured, the grace period and lapse procedures set forth
in the preceding paragraph will apply only to the Additional Sum Insured.
Lapse of the Additional Sum Insured can have significant tax consequences. See
"Tax Considerations--Policy Proceeds". If the Guaranteed Minimum Death Benefit
has been in effect and lapses at the end of a grace period (as described in
"Premiums--Guaranteed Minimum Death Benefit Premiums"), the usual default,
grace period and lapse procedures described in the preceding paragraph will be
applied commencing with the first day of the first Policy month following the
lapse of the Guaranteed Minimum Death Benefit.
The insurance under the Policy continues in full force during any grace
period but, if the insured dies during the grace period, the amount in default
is deducted from the death benefit otherwise payable.
Written notice will be furnished to the Owner at his or her last known
address, at least 31 days prior to the end of any grace period, specifying the
minimum amount which must be paid to continue the Policy in force on a premium
paying basis after the end of the grace period.
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Reinstatement. A lapsed Policy (or a lapsed Additional Sum Insured, if the
Basic Sum Insured remains in force or is reinstated) or the Guaranteed Minimum
Death Benefit may be reinstated in accordance with the Policy's terms.
Evidence of insurability satisfactory to JHVLICO will be required (except as
to a request to restore the Guaranteed Minimum Death Benefit within 1 year
after the beginning of its grace period) and payment of the required premium
and charges. The request must be received at JHVLICO's Home Office within 1
year after the beginning of the grace period (or 5 years if the request
relates only to the Guaranteed Minimum Death Benefit). JHVLICO reserves the
right to refuse Guaranteed Minimum Death Benefit restorations after the first
restoration. A reinstatement of the Basic Sum Insured or the Additional Sum
Insured may be deemed as a material change for Federal income tax purposes.
See "Premiums--7-Pay Premium Limit" and "Tax Considerations".
EXCHANGE PRIVILEGE
The Owner may transfer the entire Account Value under the Policy to the
Fixed Account at any time, creating a non-variable policy. The exchange will
be effective at the end of the Valuation Period in which JHVLICO receives at
its Home Office notice of the transfer satisfactory to JHVLICO.
----------------
The foregoing description of Policy provisions is qualified by reference to
the specimen Policy which has been filed as an exhibit to the Registration
Statement.
CHARGES AND EXPENSES
CHARGES DEDUCTED FROM PREMIUMS
In addition to the sales charge (see "Sales Charge" below), the following
charges are deducted from premiums:
Premium Processing Charge. 1.25% of each premium payment will be deducted
from each premium payment for collection and Policy processing costs.
State Premium Tax Charge. A charge currently equal to 2.35% of each premium
payment will be deducted from each premium payment. Premium taxes vary from
state to state, ranging from zero to 4% currently. A charge of 2.35% is made,
regardless of the premium tax imposed by any state. The 2.35% rate is the
average rate currently expected to be paid on premiums received in all states
over the lifetimes of the insureds covered by the Policies. JHVLICO will not
increase this charge under outstanding Policies, but reserves the right to
change this charge for Policies not yet issued in order to correspond with
changes in the state premium tax levels.
Federal DAC Tax Charge. A charge currently equal to 1.25% of each premium
payment will be deducted from each premium payment to cover the estimated cost
to JHVLICO of the Federal income tax treatment of the Policies' deferred
acquisition costs--commonly referred to as the "DAC Tax".
Charge for Optional Enhanced Cash Value Rider. A charge equal to 2% of the
premium payment will be deducted from each premium payment received in the
first Policy year up to the annual target premium. This charge is assessed in
the first Policy year only.
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SALES CHARGE
A charge is made to compensate JHVLICO for the cost of selling the Policy.
This cost includes agents' commissions, commission overrides, advertising, and
the printing of Prospectuses and sales literature. The amount of the charge in
any Policy year cannot be specifically related to sales expenses for that
year. JHVLICO expects to recover its total sales expenses over the period the
Policies are in effect. To the extent that sales charges are insufficient to
cover total sales expenses, the sales expenses may be recovered from other
sources, including gains from the charge for mortality and expense risks and
other gains with respect to the Policies, or from JHVLICO's general assets.
See "Distribution of Policies".
The sales charge in the first Policy year is equal to 30% of premiums paid
up to one "target premium" and 3.5% of all premiums in excess of the target
premium in that year. The target premium is established at issue and is the
amount of the level premium that would be necessary to support a whole life
insurance policy in the amount of the Basic Sum Insured at the maximum
guaranteed cost of insurance rates, assuming deductions or charges for the
other policy expenses at the maximum level guaranteed under the Policy and a
net interest rate of 5%. Target premiums will vary based on the issue age,
sex, smoking status and underwriting class of the insured.
The sales charge for premiums paid up to one target premium in subsequent
Policy years is 10% in years 2 through 10 and 4% thereafter. The sales charge
for premiums paid in excess of the target premium is 3.5% in all Policy years.
These sales charges are guaranteed.
An Owner may structure the timing and amount of premium payments to minimize
the sales charges deducted from premium payments, although doing so involves
certain risks. Paying less than one target premium in the first Policy year or
paying more than one target premium in any Policy year could reduce the
Owner's total sales charges over time. For example, an Owner, paying ten
target premiums of $10,000 each, would pay total sales charges of $12,000 if
he paid $10,000 in each of the first ten Policy years, but only $8,750 if he
paid $20,000 (i.e., two times the target premium amount) in every other Policy
year up to the ninth Policy year. However, delaying the payment of target
premiums to later Policy years could increase the risk that the Guaranteed
Minimum Death Benefit will lapse and that the Account Value will be
insufficient to pay monthly Policy charges as they come due. As a result, the
Policy or any Additional Sum Insured may lapse and eventually terminate. See
"Default". Conversely, accelerating the payment of target premiums to earlier
Policy years could cause aggregate premiums paid to exceed the Policy's 7-pay
premium limit and, as a result, cause the Policy to become a modified
endowment, with adverse tax consequences to the Owner upon receipt of Policy
distributions. See "Premiums--7-Pay Premium Limit".
REDUCED CHARGES FOR ELIGIBLE GROUPS
The sales charge and issue charge (described below) otherwise applicable may
be reduced with respect to Policies issued to a class of associated
individuals or to a trustee, employer or similar entity where JHVLICO
anticipates that the sales to the members of the class will result in lower
than normal sales or administrative expenses. The charge for mortality and
expense risks (described below) otherwise applicable may be reduced with
respect to Policies issued to a trustee, employer or similar entity where
JHVLICO anticipates that, because of the nature of the group on whose behalf
the Policies are purchased, there will be a lower than normal risk of the
mortality and expense charge not being sufficient to cover actual mortality
and expense costs. These reductions will be made in accordance with JHVLICO's
rules in effect at the time of the application for a Policy. The factors
considered by JHVLICO in determining the eligibility of a particular group for
reduced charges, and the level of the reduction, are as follows: the nature of
the association and its organizational framework; the method by which sales
will be made to the members of the class; the facility with which premiums
will be
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collected from the associated individuals and the association's capabilities
with respect to administrative tasks; the anticipated persistency of the
policies; the size of the class of associated individuals and the number of
years it has been in existence; the aggregate amount of premiums to be paid by
or for the class of associated individuals; and any other such circumstances
which justify a reduction in sales or administrative charges or mortality and
expense risk charges. Any reduction will be reasonable and will apply
uniformly to all prospective Policy purchasers in the class and will not be
unfairly discriminatory to the interests of any Policy Owner.
CHARGES DEDUCTED FROM ACCOUNT VALUE OR ASSETS
The following charges are deducted from Account Value or assets:
Issue Charge. Each month for the first 10 Policy years, JHVLICO will deduct
from Account Value an issue charge as set forth in the Policy per $1,000 of
Basic Sum Insured at issue. The charge varies by age at issue. For example,
this additional monthly amount for a 45 year old is 10c per $1,000 of Basic
Sum Insured at issue. This charge is guaranteed not to exceed $200 per month
and will be at least $5 per month.
The issue charge is to compensate JHVLICO for expenses incurred in
connection with the issuance of the Policy, other than sales expenses. Such
expenses include medical examinations, insurance underwriting costs and costs
incurred in processing applications and establishing permanent Policy records.
Administrative Charge. JHVLICO will deduct from Account Value a monthly
charge not to exceed $10 per Policy. The current monthly charge is $5 per
Policy.
This charge is to compensate JHVLICO for administrative expenses, including
recordkeeping, processing death claims and surrenders, making Policy changes,
reporting and other communications to Owners and other similar expense and
overhead costs.
Insurance Charge. The insurance charge deducted monthly from Account Value
is based on the attained age of the insured and the amount at risk. The amount
at risk is the difference between the current death benefit and the Account
Value (after reflecting all charges against Account Value). The amount at risk
would also be affected if the Owner purchases the Enhanced Cash Value Rider.
See "Optional Enhanced Cash Value Rider" in the Section entitled "Account
Value and Surrender Value". The amount of the insurance charge is determined
by multiplying JHVLICO's then current monthly rate for insurance by the amount
at risk.
Current monthly rates for insurance are based on the sex, age, smoking
status and underwriting class of the insureds and the length of time the
Policy has been in effect. JHVLICO will review these rates at least every 5
years, and may change these rates from time to time based on JHVLICO's
expectations of future experience. However, these rates will never be more
than the guaranteed maximum rates based on the 1980 Commissioners' Standard
Ordinary Mortality Tables, as set forth in the Policy.
Lower current insurance rates are offered at most ages for insureds who
qualify for the standard underwriting class and whose applications are fully
underwritten, i.e. subject to evidence of insurability on the part of the
insured, a process which may involve a medical examination. On the other hand,
higher current insurance rates are generally applicable if the Policies are
issued on a guaranteed issue basis, where evidence of insurability is not
required.
Policies issued to trustees, employers and similar entities are often issued
on a guaranteed issue basis. Because only limited underwriting information is
obtained in this alternative underwriting procedure, Policies in
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this class may present additional mortality expense to JHVLICO relative to
Policies which are fully underwritten. This additional insurance risk is
generally reflected in higher insurance rates, nevertheless guaranteed not to
exceed the 1980 Commissioners' Standard Ordinary Mortality Tables.
Guaranteed Minimum Death Benefit Charge. There is no charge for any
Guaranteed Minimum Death Benefit during the first 10 Policy years. If the
Guaranteed Minimum Death Benefit option is elected for a period beyond the
first 10 Policy years, JHVLICO deducts a charge from Account Value beginning
in the eleventh Policy year. The maximum monthly charge is 3c per $1000 of the
Basic Sum Insured at issue and the current monthly charge is 1c per $1,000 of
the Basic Sum Insured at issue. If the Guaranteed Minimum Death Benefit lapses
due to failure to pay sufficient premiums, the charge will be discontinued.
Because the Policies were first offered only in 1997, no Guaranteed Minimum
Death Benefit charge is yet applicable to any Policy at the current rate.
Charge for Mortality and Expense Risks. A daily charge is made for mortality
and expense risks assumed by JHVLICO at a maximum effective annual rate of
.60% of the value of the Account's assets attributable to the Policies. The
current charge is at an effective annual rate of .35%. This charge begins when
amounts under a Policy are first allocated to the Account. The mortality risk
assumed is that insureds may live for a shorter period of time than estimated
and, therefore, a greater amount of death benefit than expected will be
payable in relation to the amount of premiums received. The expense risk
assumed is that expenses incurred in issuing and administering the Policies
will be greater than estimated. JHVLICO will realize a gain from this charge
to the extent it is not needed to provide for benefits and expenses under the
Policies.
Charges for Extra Mortality Risks. An insured who does not qualify for the
standard underwriting class must pay an additional charge because of the extra
mortality risk. The level of the charge depends upon the age of the insured
and the degree of extra mortality risk. This additional charge is deducted
monthly from Account Value.
Charges for Other Optional Rider Benefits. An additional charge must be paid
if the Owner elects to purchase an optional insurance benefit by Policy rider
(other than the Enhanced Cash Value Rider). This additional charge is deducted
monthly from Account Value.
Charges for Taxes. Currently no charge is made against Account Value for
JHVLICO's Federal income taxes but if JHVLICO incurs, or expects to incur,
income taxes attributable to the Account or this class of Policies in future
years, it reserves the right to make a charge, and any charge would affect
what the Subaccounts earn. Charges for other taxes, if any, attributable to
the Subaccounts may also be made.
Charge for Partial Withdrawal. JHVLICO will deduct a charge in the amount of
$20 on a partial withdrawal of Surrender Value, as described under "Account
Value and Surrender Value". The charge will be deducted from Account Value.
The charge is to compensate JHVLICO for the administrative expenses of
effecting the withdrawal.
Fund Investment Management Fee. The Account purchases shares of the Funds at
net asset value, a value which reflects the deduction from the assets of each
Fund of its investment management fee, which is described briefly in the
Summary of this Prospectus, and of certain non-advisory operating expenses.
For a full description of these deductions, see the attached Prospectuses for
the Funds.
The monthly deductions from Account Value described above are deducted on
the date of issue and on the first day of each Policy month thereafter. These
deductions are made from the Subaccounts in proportion to the
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amount of Account Value in each. For each month that JHVLICO is unable to
deduct any charge because there is insufficient Account Value, the uncollected
charges will accumulate and be deducted when and if sufficient Account Value
is available.
GUARANTEE OF CERTAIN CHARGES
The premium processing charge, state premium tax charge, the Federal DAC Tax
charge, the issue charge and the charge for partial withdrawals are guaranteed
not to increase over the life of the Policy. The administrative charge, the
Guaranteed Minimum Death Benefit charge, the sales charge, the mortality and
expense risk charge, and the insurance charge are guaranteed not to exceed the
maximums set forth in the Policy.
DISTRIBUTION OF POLICIES
Applications are solicited by agents who are licensed by state insurance
authorities to sell JHVLICO's Policies and who are also registered
representatives ("representatives") of John Hancock or other broker-dealer
firms, as discussed below. John Hancock performs insurance underwriting,
determines whether to accept or reject the application for a Policy and each
insured's risk classification and, pursuant to a sales agreement among John
Hancock, JHVLICO, and the Account, acts as the principal underwriter of the
Policies. The sales agreement will remain in effect until terminated upon
sixty days' written notice by any party. JHVLICO will make the appropriate
refund if a Policy ultimately is not issued or is returned under the short-
term cancellation provision. Officers and employees of John Hancock and
JHVLICO are covered by a blanket bond by a commercial carrier in the amount of
$25 million.
John Hancock's representatives are compensated for sales of the Policies on
a commission and service fee basis by John Hancock, and JHVLICO reimburses
John Hancock for such compensation and for other direct and indirect expenses
(including agency expense allowances, general agent, district manager and
supervisor's compensation, agent's training allowances, deferred compensation
and insurance benefits of agents, general agents, district managers and
supervisors, agency office clerical expenses and advertising) actually
incurred in connection with the marketing and sale of the Policies.
The maximum commission payable to a John Hancock representative for selling
a Policy is 65% of the target premium paid in the first Policy year, 10% of
the target premium paid in Policy years 2 through 10, and 4% of the target
premium paid in each year thereafter. The maximum commission payable on any
premium paid in any Policy year in excess of the target premium is 4%.
Representatives with less than four years of service with John Hancock and
those compensated on salary plus bonus or level commission programs may be
paid on a different basis. Representatives who meet certain productivity and
persistency standards with respect to the sale of policies issued by JHVLICO
and John Hancock will be eligible for additional compensation.
John Hancock is registered with the Commission under the Securities Exchange
Act of 1934 as a broker-dealer and is a member of the National Association of
Securities Dealers, Inc. John Hancock is not a member of the Securities
Investor Protection Corporation because it is exempt from membership in that
organization. The Policies are also sold through other registered broker-
dealers that have entered into selling agreements with John Hancock and whose
representatives are authorized by applicable law to sell variable life
insurance policies. The commissions which will be paid by such broker-dealers
to their representatives will be in accordance with their established rules.
The commission rates may be more or less than those set forth above for John
Hancock's
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representatives. In addition, their qualified registered representatives may
be reimbursed by the broker-dealers under expense reimbursement allowance
programs in any year for approved voucherable expenses incurred. John Hancock
will compensate the broker-dealers as provided in the selling agreements, and
JHVLICO will reimburse John Hancock for such amounts and for certain other
direct expenses in connection with marketing the Policies through other
broker-dealers.
John Hancock serves as principal underwriter for other separate accounts
registered under the 1940 Act: John Hancock Variable Annuity Accounts U, I and
V, John Hancock Mutual Variable Life Insurance Account UV and John Hancock
Variable Life Accounts U and V. John Hancock is also the principal investment
manager and principal underwriter for John Hancock Variable Series Trust I.
TAX CONSIDERATIONS
The below description of Federal income tax consequences is only a brief
summary and is not intended as tax advice. For further information consult a
qualified tax advisor. Federal, state and local tax laws can change from time
to time and, as a result, the tax consequences to the Owner and beneficiary
may be altered.
POLICY PROCEEDS
Although the Policy contains provisions not found in fixed benefit life
insurance policies, JHVLICO believes the Policy will receive the same Federal
income and estate tax treatment. Section 7702 of the Internal Revenue Code
("Code") defines life insurance for Federal tax purposes. See "Death
Benefits--Definition of Life Insurance". If certain standards are met at issue
and over the life of the Policy, the Policy will come within that definition.
JHVLICO will monitor compliance with these standards. Furthermore, JHVLICO
reserves the right to make any changes in the Policy necessary to ensure the
Policy is within the definition of life insurance.
If the Policy complies with the definition of life insurance, JHVLICO
believes the death benefit under the Policy will be excludable from the
beneficiary's gross income under Section 101 of the Code. In addition,
increases in Account Value as a result of interest or investment experience
will not be subject to Federal income tax unless and until values are actually
received through withdrawal, surrender or other distributions.
A surrender, lapse or partial withdrawal may have tax consequences. For
example, the Owner will be taxed on a surrender to the extent that the Account
Value exceeds the premiums paid under the Policy, ignoring premiums paid for
riders. But under certain circumstances within the first 15 Policy years, the
Owner may be taxed on a withdrawal of Policy values even if total withdrawals
do not exceed total premiums paid.
JHVLICO also believes that, except as noted below, loans received under the
Policy will be treated as indebtedness of an Owner and that no part of any
loan will constitute income to the Owner. However, the amount of any loan
outstanding will be taxed to the Owner if a Policy lapses.
Distributions under Policies on which premiums greater than the "7-pay"
limit (see "Premiums--7-Pay Premium Limit") have been paid will be treated as
distributions from a "modified endowment," which are subject to special
taxation based on Federal tax law. The Owner of such a Policy will be taxed on
distributions such as loans, surrenders and partial withdrawals to the extent
of any income (gain) to the Owner (income-first basis). The distributions
affected will be those made on or after, and within the two year period prior
to, the time the Policy becomes a modified endowment. Additionally, a 10%
penalty tax may be imposed on affected income distributed before the Owner
attains age 59 1/2.
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Furthermore, any time there is a "material change" in a Policy (such as the
addition of certain other Policy benefits after issue, or reinstatement of a
lapsed Policy), the Policy will be subject to a new "7-pay" test, with the
possibility of a tax on distributions if it were subsequently to become a
modified endowment. Moreover, if benefits under a Policy are reduced (such as
a reduction in the Sum Insured or death benefit or the reduction or
cancellation of certain rider benefits, or Policy termination) during the 7
years in which the 7-pay test is being applied, the 7-pay limit will be
recalculated based on the reduced benefits. If the premiums paid to date are
greater than the recalculated 7-pay limit, the Policy will become a modified
endowment.
All modified endowments issued by the same insurer (or affiliates) to the
Owner during any calendar year generally will be treated as one contract for
the purpose of applying the modified endowment rules. Your tax advisor should
be consulted if you have questions regarding the possible impact of the 7-pay
limit on your Policy.
Federal estate and state and local estate, inheritance and other tax
consequences of ownership or receipt of Policy proceeds depend on the
circumstances of each Owner or beneficiary.
CHARGE FOR JHVLICO'S TAXES
Except for the DAC Tax charge, JHVLICO currently makes no charge for Federal
income taxes that may be attributable to this class of Policies. If JHVLICO
incurs, or expects to incur, income taxes attributable to this class of
Policies or any Subaccount in the future, it reserves the right to make a
charge for those taxes.
Under current laws, JHVLICO may incur state and local taxes (in addition to
premium taxes) in several states. At present, these taxes are not significant.
If there is a material change in applicable state or local tax laws, charges
for such taxes may be made.
CORPORATE AND H.R. 10 PLANS
The Policy may be acquired in connection with the funding of retirement
plans satisfying the qualification requirements of Section 401 of the Code. If
so, the Code provisions relating to such plans and life insurance benefits
thereunder should be carefully scrutinized.
25
<PAGE>
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS OF JHVLICO
The Directors and Executive Officers of JHVLICO and their principal
occupations during the past five years are as follows:
<TABLE>
<CAPTION>
Directors--Officers Principal Occupations
------------------- ---------------------
<S> <C>
David F. D'Alessandro Chairman of the Board and Chief Executive
Officer of JHVLICO; Senior Executive Vice
President and Director, John Hancock Mutual
Life Insurance Company.
Henry D. Shaw Vice Chairman of the Board and President of
JHVLICO; Senior Vice President, John
Hancock Mutual Life Insurance Company.
Thomas J. Lee Director of JHVLICO; Vice President, John
Hancock Mutual Life Insurance Company.
Michele G. Van Leer Director of JHVLICO; Vice President, John
Hancock Mutual Life Insurance Company.
Ronald J. Bocage Director and Counsel, JHVLICO; Vice
President and Counsel, John Hancock Mutual
Life Insurance Company.
Joseph A. Tomlinson Director and Vice President, JHVLICO; Vice
President, John Hancock Mutual Life
Insurance Company.
Robert R. Reitano Director of JHVLICO; Vice President, John
Hancock Mutual Life Insurance Company.
Robert S. Paster Director and Actuary, JHVLICO; Second Vice
President, John Hancock Mutual Life
Insurance Company.
Barbara L. Luddy Director of JHVLICO; Second Vice President,
John Hancock Mutual Life Insurance Company.
Daniel L. Ouellette Vice President, Marketing, JHVLICO; Vice
President, John Hancock Mutual Life
Insurance Company.
Patrick F. Smith Controller of JHVLICO; Assistant
Controller, John Hancock Mutual Life
Insurance Company.
</TABLE>
The business address of all Directors and officers of JHVLICO is John
Hancock Place, Boston, Massachusetts 02117.
REPORTS
At least once each Policy year a statement will be sent to the Owner setting
forth the amount of the death benefit, Basic Sum Insured, Additional Sum
Insured, Account Value, the portion of the Account Value in each Subaccount,
Surrender Value, premiums received and charges deducted from premiums since
the last report, and any outstanding Policy loan (and interest charged for the
preceding Policy year) as of the last day of such year. Moreover,
confirmations will be furnished to Owners of premium payments, transfers among
Subaccounts, Policy loans, partial withdrawals and certain other Policy
transactions.
26
<PAGE>
Owners will be sent semiannually a report containing the financial
statements of the Funds, including a list of securities held in each
Portfolio.
VOTING PRIVILEGES
All of the assets in the variable Subaccounts of the Account are invested in
shares of the corresponding Portfolios of the Funds. JHVLICO will vote the
shares of each of the Portfolios of the Funds which are deemed attributable to
policies at regular and special meetings of the Funds' shareholders in
accordance with instructions received from owners of such policies. Shares of
the Funds held in the Account which are not attributable to policies and
shares for which instructions from owners are not received will be represented
by JHVLICO at the meeting and will be voted for and against each matter in the
same proportions as the votes based upon the instructions received from the
owners of all policies funded through the Account's corresponding variable
Subaccounts.
The number of Fund shares held in each variable Subaccount deemed
attributable to each Owner is determined by dividing the amount of a Policy's
Account Value held in the variable Subaccount by the net asset value of one
share in the corresponding Fund Portfolio in which the assets of that variable
Subaccount are invested. Fractional votes will be counted. The number of
shares as to which the Owner may give instructions will be determined as of
the record date for the Funds' meetings.
Owners of Policies may give instructions regarding the election of the Board
of Trustees of each Fund, ratification of the selection of independent
auditors, approval of Fund investment advisory agreements and other matters
requiring a vote under the 1940 Act. Owners will be furnished information and
forms by JHVLICO in order that voting instructions may be given.
JHVLICO may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that the shares be
voted so as to change the investment objectives of the Portfolios or to
approve or disapprove an investment advisory or underwriting contract for the
Funds. JHVLICO also may disregard voting instructions in favor of changes
initiated by an Owner or Fund's Board of Trustees in the investment policy,
investment adviser or principal underwriter of the Fund, if JHVLICO (i)
reasonably disapproves of such changes and (ii) in the case of a change of
investment policy or investment adviser, makes a good-faith determination that
the proposed change is contrary to state law or prohibited by state regulatory
authorities or that the change would be inconsistent with a variable
Subaccount's investment objectives or would result in the purchase of
securities which vary from the general quality and nature of investments and
investment techniques utilized by other separate accounts of JHVLICO or of an
affiliated life insurance company, which separate accounts have investment
objectives similar to those of the variable Subaccount. In the event JHVLICO
does disregard voting instructions, a summary of that action and the reasons
for such action will be included in the next semi-annual report to Owners.
CHANGES THAT JHVLICO CAN MAKE
The voting privileges described in this Prospectus are afforded based on
JHVLICO's understanding of applicable Federal securities law requirements. To
the extent that applicable law, regulations or interpretations change to
eliminate or restrict the need for such voting privileges, JHVLICO reserves
the right to proceed in accordance with any such revised requirements. JHVLICO
also reserves the right, subject to compliance with applicable law, including
approval of Owners if so required, (1) to transfer assets determined by
JHVLICO to be
27
<PAGE>
associated with the class of policies to which the Policies belong from the
Account to another separate account or variable Subaccount by withdrawing the
same percentage of each investment in the Account with appropriate adjustments
to avoid odd lots and fractions, (2) to operate the Account as a "management-
type investment company" under the 1940 Act, or in any other form permitted by
law, the investment adviser of which would be JHVLICO, an affiliate or John
Hancock, (3) to deregister the Account under the 1940 Act, (4) to substitute
for the Portfolio shares held by a Subaccount any other investment permitted
by law, and (5) to take any action necessary to comply with or obtain any
exemptions from the 1940 Act. JHVLICO would notify Owners of any of the
foregoing changes and, to the extent legally required, obtain approval of
Owners and any regulatory body prior thereto. Such notice and approval,
however, may not be legally required in all cases.
STATE REGULATION
JHVLICO is subject to regulation and supervision by the Massachusetts
Commissioner of Insurance who periodically examines its affairs. It also is
subject to the applicable insurance laws and regulations of all jurisdictions
in which it is authorized to do business.
JHVLICO is required to submit annual statements of its operations, including
financial statements, to the insurance departments of the various
jurisdictions in which it does business for purposes of determining solvency
and compliance with local insurance laws and regulations.
LEGAL MATTERS
Legal matters in connection with the Policies described in this Prospectus
have been passed on by Francis C. Cleary, Jr., Counsel for JHVLICO. Messrs.
Freedman, Levy, Kroll & Simonds, Washington, D.C., have advised JHVLICO on
certain Federal securities law matters in connection with the Policies.
REGISTRATION STATEMENT
This Prospectus omits certain information contained in the Registration
Statement which has been filed with the Commission. More details may be
obtained from the Securities and Exchange Commission upon payment of the
prescribed fee.
EXPERTS
The financial statements of the Account and JHVLICO included in this
Prospectus have been audited by , independent auditors, for the periods
indicated in their reports thereon which appear elsewhere herein and have been
included in reliance on their reports given on their authority as experts in
accounting and auditing.
Actuarial matters included in this Prospectus have been examined by Deborah
A. Poppel, F.S.A., an Actuary of JHVLICO.
FINANCIAL STATEMENTS
[TO BE FILED BY AMENDMENT.]
28
<PAGE>
APPENDIX--OTHER POLICY PROVISIONS
SETTLEMENT PROVISIONS
In place of a single payment, an amount of $1,000 or more payable under the
Policy as a benefit or as the Surrender Value, if any, may be left with
JHVLICO under the terms of a supplementary agreement. The agreement will be
issued when the proceeds are applied through the election of any one of the
options below.
The following options are subject to the restrictions and limitations stated
in the Policy.
Option 1--Interest Income at the declared rate but not less than 3 1/2% a
year on proceeds held on deposit.
Option 2A--Income of a Specified Amount, with payments each year totaling
at least 1/12th of the proceeds, until the proceeds, with interest credited
at the declared rate but not less than 3 1/2% a year on unpaid balances,
are fully paid.
Option 2B--Income for a Fixed Period, with each payment as declared.
Option 3--Life Income with Payments for a Guaranteed Period.
Option 4--Life Income without Refund at the death of the Payee of any
part of the proceeds applied. Only one payment is made if the Payee dies
before the second payment is due.
Option 5--Life Income with Cash Refund at the death of the Payee of the
amount, if any, equal to the proceeds applied less the sum of all income
payments made.
No election of an option may provide for income payments of less than $50.
Other options may be arranged with JHVLICO's approval including optional
methods of settlement available from John Hancock.
ADDITIONAL INSURANCE BENEFITS
On payment of an additional premium or charge and subject to certain age and
insurance underwriting requirements, certain additional provisions, such as an
Accidental Death Benefit, which are subject to the restrictions and
limitations set forth therein, may be included in a Policy by rider.
GENERAL PROVISIONS
BENEFICIARY. The Beneficiary will be as shown in the application for the
Policy, unless thereafter changed by the Owner in accordance with the terms of
the Policy. If the insured dies and there is no surviving Beneficiary, the
Owner will be the Beneficiary, but if the insured was the Owner, the Owner's
estate will be the Beneficiary.
OWNER AND ASSIGNMENT. The Owner's interest in the Policy may be assigned
without the consent of any revocable Beneficiary. JHVLICO will not be on
notice of any assignment unless it is in writing and until a duplicate of the
original assignment has been filed at JHVLICO's Home Office. JHVLICO assumes
no responsibility for the validity or sufficiency of any assignment.
MISSTATEMENT OF AGE OR SEX. If the age or sex of the insured has been
misstated, JHVLICO will adjust the benefits payable to reflect the correct age
or sex.
A-1
<PAGE>
SUICIDE. If the insured commits suicide within 2 years (except where state
law requires a shorter period) from the date of issue shown in the Policy,
JHVLICO will pay in place of all other benefits an amount equal to the premium
paid less any Indebtedness on the date of death and any withdrawals. If the
suicide is within 2 years (except where state law requires a shorter period)
from the date of any Policy change that increases the death benefit, the death
benefit will be limited as set forth in the Policy.
AGE AND POLICY ANNIVERSARIES. For purpose of the Policy, an insured's "age"
is his or her age on his or her nearest birthday. Policy months and Policy
years are calculated from the date of issue.
AVIATION ACTIVITY EXCLUSION. If the insured dies in an aviation accident
while a crew member on other than a commercial aircraft and the Policy
provides at the request of the Owner for a limited benefit in such situation,
JHVLICO will pay in place of all other benefits an amount equal to the greater
of the premium paid or the Surrender Value, less any Indebtedness.
INCONTESTABILITY. The Policy shall be incontestable other than for
nonpayment of premiums after it has been in force during the lifetime of an
insured for 2 years from its issue date. If, however, evidence of insurability
is required with respect to any increase in death benefit, such increase shall
be incontestable after the increase has been in force for 2 years from the
increase date.
DEFERRAL OF DETERMINATIONS AND PAYMENTS. Payment of any death, surrender,
partial withdrawal or loan proceeds will ordinarily be made within seven days
after receipt at JHVLICO's Home Office of all documents required for any such
payment. Approximately two-thirds of the claims for death proceeds which are
made within two years after the date of issue of the Policy will be
investigated to determine whether the claim should be contested and payment of
these claims will therefore be delayed.
JHVLICO may defer any transaction requiring a determination of Account Value
in any variable Subaccount for any period during which: (1) the disposal or
valuation of the Account's assets is not reasonably practicable because the
New York Stock Exchange is closed or conditions are such that, under the
Commission's rules and regulations, trading is restricted or an emergency is
deemed to exist or (2) the Commission by order permits postponement of such
actions for the protection of Owners.
The foregoing description of Policy provisions is qualified by reference to
the specimen Policy which has been filed as an exhibit to the Registration
Statement.
A-2
<PAGE>
APPENDIX--ILLUSTRATION OF DEATH BENEFITS,
SURRENDER VALUES AND ACCUMULATED PREMIUMS
The following tables illustrate the changes in death benefit and Surrender
Value of the Policy, disregarding any Policy loans. Each table separately
illustrates the operation of a Policy for an identified issue age, Planned
Premium schedule and Total Sum Insured and shows how the death benefit and
Surrender Value may vary over an extended period of time assuming hypothetical
rates of investment return (i.e., investment income and capital gains and
losses, realized or unrealized) equivalent to constant gross annual rates of
0%, 6% and 12%. The tables are based on given annual Planned Premiums paid at
the beginning of each Policy year and will assist in a comparison of the death
benefit and Surrender Value figures set forth in the tables with those under
other variable life insurance policies which may be issued by JHVLICO or other
companies. Tables are provided for Options A, B and M for the Cash Value
Accumulation Test and Options A and B for the Guideline Premium and Cash Value
Corridor Test. The death benefit and Surrender Value for a Policy would be
different from those shown if premiums are paid in different amounts or at
different times or if the actual gross rates of investment return average 0%,
6% or 12% over a period of years, but nevertheless fluctuate above or below
the average for individual Policy years, or if the Policy were issued under
circumstances in which no distinctions are made based on the gender of the
insured.
The amounts shown for the death benefit and Surrender Value are as of the
end of each Policy year. The first five tables headed "Using Current Charges"
assume that the current rates for insurance, sales, risk, and expense charges
will apply in each year illustrated. The five tables headed "Using Maximum
Charges" assume that the maximum (guaranteed) insurance, sales, risk, and
expense charges will be made in each year illustrated. The amounts shown in
all tables reflect an average asset charge for the daily investment advisory
expense charges to the Portfolios of the Funds (equivalent to an effective
annual rate of .63%) and an assumed average asset charge for the annual
nonadvisory operating expenses of each Portfolio of the Funds (equivalent to
an effective annual rate of .20%). For a description of expenses charged to
the Portfolios, see the attached Prospectuses for the Funds. The charges for
the daily investment management fee and the annual non-advisory operating
expenses are based on the hypothetical assumption that Policy values are
allocated equally among the variable Subaccounts. The actual Portfolio charges
and expenses associated with any Policy will vary depending upon the actual
allocation of Policy values among Subaccounts.
The tables reflect that no charge is currently made to the Account for
Federal income taxes. However, JHVLICO reserves the right to make such a
charge in the future and any charge would require higher rates of investment
return in order to produce the same Policy values. All of the tables do,
however, reflect the imposition of a premium processing charge of 1.25% of all
premiums paid, a Federal DAC Tax charge in the amount of 1.25% of all premiums
paid and a state premium tax charge in the amount of 2.35% of all premiums
paid.
The tables assume that the Guaranteed Minimum Death Benefit has not been
elected beyond the tenth Policy year, that no Additional Sum Insured or
optional rider benefits have been elected, and that the application for the
Policy has been fully underwritten.
The second column of each table shows the amount to which the total premiums
paid to the end of a Policy year would accumulate if an amount equal to those
premiums were invested to earn interest, after taxes, at 5% compounded
annually.
JHVLICO will furnish upon request a comparable illustration reflecting the
proposed insured's age, sex, underwriting risk classification and the Total
Sum Insured at issue and Planned Premium amount requested, and assuming annual
Planned Premiums.
A-3
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION
A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
NO GUARANTEED MINIMUM DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $9,060*USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------------------------- ----------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at --------------------------------------------- ----------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- --------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $ 500,000 $500,000 $500,000 $ 4,599 $ 4,909 $ 5,220
2 19,502 500,000 500,000 500,000 10,791 11,803 12,853
3 29,990 500,000 500,000 500,000 16,775 18,887 21,162
4 41,002 500,000 500,000 500,000 22,615 26,234 30,286
5 52,565 500,000 500,000 500,000 28,336 33,882 40,340
6 64,707 500,000 500,000 500,000 33,950 41,859 51,440
7 77,455 500,000 500,000 500,000 39,520 50,243 63,761
8 90,841 500,000 500,000 500,000 45,045 59,054 77,437
9 104,896 500,000 500,000 500,000 50,518 68,303 92,607
10 119,653 500,000 500,000 500,000 55,924 77,999 109,421
11 135,149 500,000 500,000 500,000 62,330 89,285 129,234
12 151,420 500,000 500,000 500,000 68,518 100,983 151,076
13 168,504 500,000 500,000 500,000 74,461 113,091 175,159
14 186,442 500,000 500,000 500,000 80,152 125,630 201,743
15 205,277 500,000 500,000 500,000 85,591 138,626 231,127
16 225,054 500,000 500,000 500,000 90,790 152,119 263,657
17 245,819 500,000 500,000 547,312 95,723 166,123 299,585
18 267,623 500,000 500,000 604,197 100,377 180,663 339,094
19 290,518 500,000 500,000 665,096 104,736 195,768 382,525
20 314,556 500,000 500,000 730,389 108,777 211,466 430,248
25 454,028 500,000 500,000 1,137,576 123,356 300,319 748,849
30 632,033 500,000 565,635 1,727,486 124,690 410,446 1,253,527
35 859,217 500,000 689,387 2,607,041 104,453 541,248 2,046,825
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12%
OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR
INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
A-4
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION
A DEATH BENEFIT CASH VALUE ACCUMULATION TEST NO GUARANTEED MINIMUM
DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$9,060* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
---------------------------------------------- ---------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at ---------------------------------------------- ---------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- ---------------- ---------------------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $ 500,000 $ 500,000 $ 500,000 $ 2,869 $ 3,123 $ 3,380
2 19,502 500,000 500,000 500,000 7,323 8,118 8,947
3 29,990 500,000 500,000 500,000 11,542 13,162 14,919
4 41,002 500,000 500,000 500,000 15,521 18,254 21,335
5 52,565 500,000 500,000 500,000 19,242 23,374 28,224
6 64,707 500,000 500,000 500,000 22,695 28,516 35,631
7 77,455 500,000 500,000 500,000 25,845 33,642 43,578
8 90,841 500,000 500,000 500,000 28,662 38,724 52,102
9 104,896 500,000 500,000 500,000 31,113 43,724 61,238
10 119,653 500,000 500,000 500,000 33,154 48,599 71,023
11 135,149 500,000 500,000 500,000 35,904 54,514 82,767
12 151,420 500,000 500,000 500,000 38,187 60,310 95,439
13 168,504 500,000 500,000 500,000 39,990 65,974 109,159
14 186,442 500,000 500,000 500,000 41,286 71,478 124,050
15 205,277 500,000 500,000 500,000 42,039 76,789 140,257
16 225,054 500,000 500,000 500,000 42,192 81,852 157,929
17 245,819 500,000 500,000 500,000 41,672 86,600 177,243
18 267,623 500,000 500,000 500,000 40,389 90,945 198,397
19 290,518 500,000 500,000 500,000 38,229 94,782 221,629
20 314,556 500,000 500,000 500,000 35,077 98,001 247,239
25 454,028 500,000 500,000 637,703 196 100,684 419,790
30 632,033 ** 500,000 925,706 ** 59,398 671,726
35 859,217 ** ** 1,305,084 ** ** 1,024,640
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-5
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASS OPTION
B DEATH BENEFIT CASH VALUE ACCUMULATION TEST NO GUARANTEED MINIMUM
DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR PLANNED PREMIUM; $9,060*
USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------------------------- ---------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at --------------------------------------------- ---------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- --------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $504,592 $504,903 $505,213 $ 4,592 $ 4,903 $ 5,213
2 19,502 510,767 511,777 512,825 10,767 11,777 12,825
3 29,990 516,721 518,825 521,092 16,721 18,825 21,092
4 41,002 522,515 526,116 530,147 22,515 26,116 30,147
5 52,565 528,176 533,686 540,101 28,176 33,686 40,101
6 64,707 533,716 541,559 551,059 33,716 41,559 51,059
7 77,455 539,200 549,817 563,198 39,200 49,817 63,198
8 90,841 544,630 558,478 576,644 44,630 58,478 76,644
9 104,896 549,996 567,549 591,527 49,996 67,549 91,527
10 119,653 555,283 577,037 607,983 55,283 77,037 107,983
11 135,149 561,547 588,062 627,331 61,547 88,062 127,331
12 151,420 567,553 599,421 648,551 67,553 99,421 148,551
13 168,504 573,266 611,090 671,800 73,266 111,090 171,800
14 185,442 578,672 623,065 697,278 78,672 123,066 197,278
15 205,277 583,766 635,356 725,213 83,766 135,356 225,213
16 225,054 588,557 647,977 755,872 88,557 147,977 255,872
17 245,819 593,007 660,905 789,503 93,007 160,905 289,503
18 267,623 597,096 674,129 826,399 97,096 174,129 326,399
19 290,518 600,798 687,631 866,874 100,798 187,631 366,874
20 314,558 604,078 701,384 911,269 104,078 201,384 411,269
25 454,028 612,889 772,785 1,206,664 112,889 272,785 706,664
30 632,033 603,922 842,996 1,674,530 103,922 342,996 1,174,530
35 859,217 568,228 900,326 2,439,956 68,228 400,326 1,915,544
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-6
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASS OPTION
B DEATH BENEFIT CASH VALUE ACCUMULATION TEST NO GUARANTEED MINIMUM
DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR PLANNED PREMIUM: $9,060*
USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------------------------------------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at ------------------------------------------------------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- ----------------------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $502,849 $503,103 $503,358 $ 2,849 $ 3,103 $ 3,358
2 19,502 507,261 508,049 508,872 7,261 8,049 8,872
3 29,990 511,411 513,012 514,748 11,411 13,012 14,748
4 41,002 515,294 517,982 521,013 15,294 17,982 21,013
5 52,565 518,887 522,935 527,682 18,887 22,936 27,682
6 64,707 522,181 527,853 534,781 22,181 27,853 34,781
7 77,455 525,135 532,688 542,306 25,135 32,688 42,306
8 90,841 527,717 537,401 550,265 27,717 37,401 50,265
9 104,896 529,890 541,941 558,655 29,890 41,941 58,655
10 119,653 531,607 546,247 567,468 31,607 46,247 67,468
11 135,149 533,978 551,460 577,948 33,978 51,460 77,948
12 151,420 535,820 556,396 588,993 35,820 56,396 88,993
13 168,504 537,121 561,023 600,641 37,121 61,023 100,641
14 186,442 537,853 565,289 612,915 37,853 65,289 112,915
15 205,277 537,983 569,136 625,838 37,983 69,136 125,838
16 225,054 537,455 572,478 639,407 37,455 72,478 139,407
17 245,819 536,200 575,213 653,608 36,200 75,213 153,608
18 267,623 534,133 577,214 668,406 34,133 77,214 168,406
19 290,518 531,153 578,332 683,741 31,153 78,332 183,741
20 314,556 527,166 578,417 699,556 27,166 78,417 199,556
25 454,028 ** 558,168 783,957 ** 58,168 283,957
30 632,033 ** ** 864,460 ** ** 364,460
35 859,217 ** ** 897,958 ** ** 397,958
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-7
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION
M DEATH BENEFIT CASH VALUE ACCUMULATION TEST NO GUARANTEED MINIMUM
DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$9,060* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
---------------------------------------------- ----------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at ---------------------------------------------- ----------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- ---------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $500,000 $500,000 $ 500,000 $ 4,599 $ 4,909 $ 5,220
2 19,502 500,000 500,000 500,000 10,791 11,803 12,853
3 29,990 500,000 500,000 500,000 16,775 18,887 21,162
4 41,002 500,000 500,000 500,000 22,615 26,234 30,286
5 52,565 500,000 500,000 500,000 28,336 33,882 40,340
6 64,707 500,000 500,000 500,000 33,950 41,859 51,440
7 77,455 500,000 500,000 500,000 39,520 50,243 63,761
8 90,841 500,000 500,000 500,000 45,045 59,054 77,437
9 104,896 500,000 500,000 500,000 50,518 68,303 92,607
10 119,653 500,000 500,000 500,000 55,924 77,999 109,421
11 135,149 500,000 500,000 510,812 62,330 89,285 129,231
12 151,420 500,000 500,000 571,396 68,518 100,983 150,943
13 168,504 500,000 500,000 633,526 74,461 113,091 174,660
14 186,442 500,000 500,000 697,299 80,152 125,630 200,546
15 205,277 500,000 500,000 762,873 85,591 138,626 228,789
16 225,054 500,000 500,000 830,492 90,790 152,119 259,610
17 245,819 500,000 510,013 900,246 95,723 166,107 293,202
18 267,623 500,000 532,181 972,319 100,377 180,504 329,790
19 290,518 500,000 553,214 1,046,965 104,736 195,302 369,613
20 314,556 500,000 573,171 1,124,368 108,777 210,492 412,915
25 454,028 500,000 658,959 1,560,318 123,356 292,104 691,661
30 632,033 500,000 723,740 2,093,439 124,690 382,001 1,104,950
35 859,217 500,000 775,851 2,767,534 104,453 479,542 1,710,572
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-8
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE
$500,000 TOTAL SUM INSURED
MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASS
OPTION M DEATH BENEFIT
CASH VALUE ACCUMULATION TEST
NO GUARANTEED MINIMUM DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $9,060*
USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
---------------------------------------------- ----------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at ---------------------------------------------- ----------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- ---------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $ 500,000 $ 500,000 $ 500,000 $ 2,869 $ 3,123 $ 3,380
2 19,502 500,000 500,000 500,000 7,323 8,118 8,947
3 29,990 500,000 500,000 500,000 11,542 13,162 14,919
4 41,002 500,000 500,000 500,000 15,521 18,254 21,335
5 52,565 500,000 500,000 500,000 19,242 23,374 28,224
6 64,707 500,000 500,000 500,000 22,695 28,516 35,631
7 77,455 500,000 500,000 500,000 25,845 33,642 43,578
8 90,841 500,000 500,000 500,000 28,662 38,724 52,102
9 104,896 500,000 500,000 500,000 31,113 43,724 61,238
10 119,653 500,000 500,000 500,000 33,154 48,599 71,023
11 135,149 500,000 500,000 500,000 35,904 54,514 82,767
12 151,420 500,000 500,000 500,000 38,187 60,310 95,439
13 168,504 500,000 500,000 500,000 39,990 65,974 109,159
14 186,442 500,000 500,000 500,000 41,286 71,478 124,050
15 205,277 500,000 500,000 500,000 42,039 76,789 140,257
16 225,054 500,000 500,000 505,204 42,192 81,852 157,926
17 245,819 500,000 500,000 542,765 41,672 86,600 176,773
18 267,623 500,000 500,000 579,690 40,389 90,945 196,618
19 290,518 500,000 500,000 615,942 38,229 94,782 217,448
20 314,556 500,000 500,000 651,481 35,077 96,001 239,251
25 454,028 500,000 500,000 819,382 196 100,684 363,217
30 632,033 ** 500,000 967,938 ** 59,398 510,893
35 859,217 ** ** 1,093,716 ** ** 676,010
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12%
OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR
INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
A-9
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION
A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TESTNO
GUARANTEED MINIMUM DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $9,060*USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------------------------- ----------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at --------------------------------------------- ----------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- --------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $ 500,000 $ 500,000 $ 500,000 $ 4,599 $ 4,909 $ 5,220
2 19,502 500,000 500,000 500,000 10,791 11,803 12,853
3 29,990 500,000 500,000 500,000 16,775 18,887 21,162
4 41,002 500,000 500,000 500,000 22,615 26,234 30,286
5 52,565 500,000 500,000 500,000 28,336 33,882 40,340
6 64,707 500,000 500,000 500,000 33,950 41,859 51,440
7 77,455 500,000 500,000 500,000 39,520 50,243 63,761
8 90,841 500,000 500,000 500,000 45,045 59,054 77,437
9 104,896 500,000 500,000 500,000 50,518 68,303 92,607
10 119,653 500,000 500,000 500,000 55,924 77,999 109,421
11 135,149 500,000 500,000 500,000 62,330 89,285 129,234
12 151,420 500,000 500,000 500,000 68,518 100,983 151,076
13 168,504 500,000 500,000 500,000 74,461 113,091 175,159
14 186,442 500,000 500,000 500,000 80,152 125,630 201,743
15 205,277 500,000 500,000 500,000 85,591 138,626 231,127
16 225,054 500,000 500,000 500,000 90,790 152,119 263,657
17 245,819 500,000 500,000 500,000 95,723 166,123 299,700
18 267,623 500,000 500,000 500,000 100,377 180,663 339,687
19 290,518 500,000 500,000 500,000 104,736 195,768 384,108
20 314,556 500,000 500,000 528,831 108,777 211,466 433,468
25 454,028 500,000 500,000 892,358 123,356 300,319 769,274
30 632,033 500,000 500,000 1,414,405 124,690 412,559 1,321,873
35 859,217 500,000 589,777 2,347,567 104,453 561,693 2,235,778
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-10
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSUREDMALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION A
DEATH BENEFITGUIDELINE PREMIUM AND CASH VALUE CORRIDOR TESTNO
GUARANTEED MINIMUM DEATH BENEFIT OPTION AFTER TENTH POLICY
YEARPLANNED PREMIUM: $9,060*USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
---------------------------------------------- ---------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at ---------------------------------------------- ---------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- ---------------- ---------------------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $500,000 $500,000 $ 500,000 $ 2,869 $ 3,123 $ 3,380
2 19,502 500,000 500,000 500,000 7,323 8,118 8,947
3 29,990 500,000 500,000 500,000 11,542 13,162 14,919
4 41,002 500,000 500,000 500,000 15,521 18,254 21,335
5 52,565 500,000 500,000 500,000 19,242 23,374 28,224
6 64,707 500,000 500,000 500,000 22,695 28,516 35,631
7 77,455 500,000 500,000 500,000 25,845 33,642 43,578
8 90,841 500,000 500,000 500,000 28,662 38,724 52,102
9 104,896 500,000 500,000 500,000 31,113 43,724 61,238
10 119,653 500,000 500,000 500,000 33,154 48,599 71,023
11 135,149 500,000 500,000 500,000 35,904 54,514 82,767
12 151,420 500,000 500,000 500,000 38,187 60,310 95,439
13 168,504 500,000 500,000 500,000 39,990 65,974 109,159
14 186,442 500,000 500,000 500,000 41,286 71,478 124,050
15 205,277 500,000 500,000 500,000 42,039 76,789 140,257
16 225,054 500,000 500,000 500,000 42,192 81,852 157,929
17 245,819 500,000 500,000 500,000 41,672 86,600 177,243
18 267,623 500,000 500,000 500,000 40,389 90,945 198,397
19 290,518 500,000 500,000 500,000 38,229 94,782 221,629
20 314,556 500,000 500,000 500,000 35,077 98,001 247,239
25 454,028 500,000 500,000 500,000 196 100,684 427,694
30 632,033 ** 500,000 789,743 ** 59,398 738,078
35 859,217 ** ** 1,303,614 ** ** 1,241,537
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-11
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSURED MALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION
B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TESTNO
GUARANTEED MINIMUM DEATH BENEFIT OPTION AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $9,060*USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------------------------- ----------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at --------------------------------------------- ----------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- --------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $ 504,592 $ 504,903 $ 505,213 $ 4,592 $ 4,903 $ 5,213
2 19,502 510,767 511,777 512,825 10,767 11,777 12,825
3 29,990 516,721 518,825 521,092 16,721 18,825 21,092
4 41,002 522,515 526,116 530,147 22,515 26,116 30,147
5 52,565 528,176 533,686 540,101 28,176 33,686 40,101
6 64,707 533,716 541,559 551,059 33,716 41,559 51,059
7 77,455 539,200 549,817 563,198 39,200 49,817 63,198
8 90,841 544,630 558,478 576,644 44,630 58,478 76,644
9 104,896 549,996 567,549 591,527 49,996 67,549 91,527
10 119,653 555,283 577,037 607,983 55,283 77,037 107,983
11 135,149 561,547 588,062 627,331 61,547 88,062 127,331
12 151,420 567,553 599,421 648,551 67,553 99,421 148,551
13 168,504 573,266 611,090 671,800 73,266 111,090 171,800
14 186,442 578,672 623,066 697,278 78,672 123,066 197,278
15 205,277 583,766 635,356 725,213 83,766 135,356 225,213
16 225,054 588,557 647,977 755,872 88,557 147,977 255,872
17 245,819 593,007 660,905 789,503 93,007 160,905 289,503
18 267,623 597,096 674,129 826,399 97,096 174,129 326,399
19 290,518 600,798 687,631 866,874 100,798 187,631 366,874
20 314,556 604,078 701,384 911,269 104,078 201,384 411,269
25 454,028 612,889 772,785 1,206,664 112,889 272,785 706,664
30 632,033 603,922 842,996 1,674,530 103,922 342,996 1,174,530
35 859,217 568,228 900,326 2,415,878 68,228 400,326 1,915,878
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-12
<PAGE>
PLAN: FLEXIBLE PREMIUM VARIABLE LIFE $500,000 TOTAL SUM INSUREDMALE,
ISSUE AGE 45, FULLY UNDERWRITTEN NONSMOKER UNDERWRITING CLASSOPTION B
DEATH BENEFITGUIDELINE PREMIUM AND CASH VALUE CORRIDOR TESTNO
GUARANTEED MINIMUM DEATH BENEFIT OPTION AFTER TENTH POLICY
YEARPLANNED PREMIUM: $9,060*USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
-------------------------------------------------------------------------------------------
Planned Premiums Assuming hypothetical gross annual return of Assuming hypothetical gross annual return of
End of accumulated at -------------------------------------------------------------------------------------------
Policy Year 5% annual interest 0% 6% 12% 0% 6% 12%
- ----------- ------------------ -------------- -------------- ------------------------------ -------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 9,513 $502,849 $503,103 $ 503,358 $ 2,849 $ 3,103 $ 3,358
2 19,502 507,261 508,872 508,872 7,261 8,049 8,872
3 29,990 511,411 513,012 514,748 11,411 13,012 14,478
4 41,002 515,294 517,982 521,013 15,294 17,982 21,013
5 52,565 518,887 522,935 527,682 18,887 22,935 27,682
6 64,707 522,181 527,853 534,781 22,181 27,853 34,781
7 77,455 525,135 532,688 542,306 25,135 32,688 42,306
8 90,841 527,717 537,401 550,265 27,717 37,401 50,265
9 104,896 529,890 541,941 558,655 29,890 41,941 58,655
10 119,653 531,607 546,247 567,468 31,607 46,247 67,468
11 135,149 533,978 551,460 577,948 33,978 51,460 77,948
12 151,420 535,820 556,396 588,993 35,820 56,396 88,993
13 168,504 537,121 561,023 600,641 37,121 61,023 100,641
14 186,442 537,853 565,289 612,915 37,853 65,289 112,915
15 205,277 537,983 569,136 625,838 37,983 69,136 125,838
16 225,054 537,455 572,478 639,407 37,455 72,478 139,407
17 245,819 536,200 575,213 653,608 36,200 75,213 153,608
18 267,623 534,153 577,214 668,406 34,133 77,214 168,406
19 290,518 531,133 578,332 683,741 31,153 78,332 183,741
20 314,556 527,166 578,417 699,556 27,166 78,417 199,556
25 454,028 ** 558,168 783,957 ** 58,168 283,957
30 632,033 ** ** 864,460 ** ** 364,460
35 859,217 ** ** 897,958 ** ** 397,958
</TABLE>
- --------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies,
if Policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum
Death Benefit after the tenth Policy year, or optional rider benefits are
elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS 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 INVESTMENT ALLOCATIONS MADE BY
THE OWNER. THE DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE
DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN
AVERAGE 0%, 6%, OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR
BELOW THE AVERAGE FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE
THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
A-13
<PAGE>
LOGO
POLICIES ISSUED BY JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK PLACE, BOSTON, MASSACHUSETTS 02117
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned 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.
UNDERTAKING REGARDING INDEMNIFICATION
Pursuant to Section X of JHVLICO's Bylaws and Section 67 of the
Massachusetts Business Corporation Law, JHVLICO indemnifies each director,
former director, officer, and former officer, and his heirs and legal
representatives from liability incurred or imposed in connection with any legal
action in which he may be involved by reason of any alleged act or omission as
an officer or a director of JHVLICO.
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 against
such liabilities (other than the payment by the registrant of expenses 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.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following Papers and Documents:
The facing sheet.
Cross-Reference Table.
The prospectus consisting of 63 pages.
The undertaking regarding indemnification.
The undertaking to file reports.
The signatures.
The following exhibits:
<PAGE>
1.A. (1) JHVLICO Board Resolution establishing the separate account.
(2) Not Applicable.
(3) (a) Distribution Agreement and Amendment.
(b) Specimen Variable Contracts Selling Agreement between John
Hancock Mutual Life Insurance Company and selling broker-
dealers.
(c) Schedule of sales commissions included in the text under the
heading "Distribution of Policies" in the prospectus.
(4) Not Applicable.
(5) Form of flexible premium variable life insurance policy. (To be
added by amendment.)
(6) (a) JHVLICO Certificate of Incorporation.
(b) JHVLICO By-laws.
(7) Not Applicable.
(8) Not Applicable.
(9) Not Applicable.
(10) Forms of individual and master applications for Policy.
(18) Representation of Reasonableness. (To be added by amendment.)
<PAGE>
2. Included as exhibit 1.A(5) above.
3. Opinion and consent of counsel as to securities being registered. (To be
filed by amendment.)
4. Not Applicable
5. Not Applicable
6. Opinion and consent of actuary. (To be added by amendment.)
7. Consent of independent auditors. (To be added by amendment.)
8. Memorandum describing JHVLICO's issuance, transfer and redemption
procedures for the flexible premium policy pursuant to Rule
6e-3(T)(b)(12)(iii). (To be added by amendment.)
9. Powers of attorney for Tomlinson, D'Alessandro, Shaw, Luddy, Lee, Reitano,
Van Leer and Paster.
10. Not Applicable.
18. Representation of Reasonableness. (To be added by amendment.)
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the John
Hancock Variable Life Insurance Company has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunder duly
authorized, and its seal to be hereunto fixed and attested, all in the City of
Boston and Commonwealth of Massachusetts on the 28th day of October, 1996.
JOHN HANCOCK VARIABLE LIFE
INSURANCE COMPANY
(SEAL)
/s/ Henry D. Shaw
By ____________________________
Henry D. Shaw
President
/s/ Sandra M. DaDalt
Attest: _______________________________
Sandra M. DaDalt
Assistant Secretary
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities with John Hancock Variable Life Insurance Company and on the dates
indicated.
Signature Title Date
--------- ----- ----
/s/ Barbara L. Luddy
______________________
Barbara L. Luddy Director(Acting Principal
Accounting Officer) October 28, 1996
/s/ Patrick F. Smith
______________________ Controller (Principal
Patrick F. Smith Accounting Officer) October 28, 1996
/s/ Ronald J. Bocage
______________________ Director Ocbober 28, 1996
Ronald J. Bocage
/s/ Henry D. Shaw
______________________ Vice Chairman of the Board
Henry D. Shaw and President(Acting Principal
for himself and as Executive Officer) October 28, 1996
Attorney-In-Fact
FOR: David D. D'Alessandro Chairman of the Board
Robert R. Reitano Director
Thomas J. Lee Director
Michele G. Van Leer Director
Barbara L. Luddy Director
<PAGE>
-3-
Pursuant to the requirements of the Securities Act of 1933, the
Registrant, John Hancock Variable Life Account S, has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, and its seal to be hereunto fixed and attested, all in the City
of Boston and Commonwealth of Massachusetts on the 28th day of October, 1996.
JOHN HANCOCK VARIABLE LIFE ACCOUNT S
(Registrant)
By John Hancock Mutual Life Insurance Company
(Depositor)
(SEAL)
/s/ Henry D. Shaw
By ______________________________
Henry D. Shaw
President
/s/ Sandra M. DaDalt
Attest: _______________________________
Sandra M. DaDalt
Assistant Secretary
<PAGE>
EXHIBIT 1.A.(1)
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
Boston, Massachusetts
VOTE OF BOARD OF DIRECTORS
Meeting of May 27, 1993
VOTED, with respect to separate investment accounts:
(a) To establish one or more separate investment accounts (the
"Account"), pursuant to Section 132 G of Chapter 175 of the Massachusetts
General Laws, as amended, for the funds attributable to individual life policies
on a variable basis to be issued by the Company. The Officers of the Company
may determine the designation of each Account and may from time to time change
its designation as they deem necessary and appropriate.
(b) To allocate to the Account amounts to provide for life insurance
(including benefits incidental thereto) payable in fixed or variable amounts or
both and the income, gains and losses, realized or unrealized, attributable to
the Account shall be credited to or charged against the Account without regard
to the other income, gains or losses of the Company.
(c) To authorize the registration of the Account as an investment company
under the Investment Company Act of 1940 and the registration of the variable
life insurance policies issued in connection with the Account as securities
under the Securities Act of 1933, and to authorize and empower the Chairman of
the Board, the Vice Chairman, the President, or the Secretary of the Company
("Officers of the Company") to take all action necessary to comply with the
Acts, including but not limited to the execution and filing of registration
statements and amendments thereto, applications for exemptions from the
provisions of the Act as may be necessary or desirable and amendments thereto,
and agreements for the administration of the Account and for the distribution of
variable life insurance policies carrying an interest in the Account assets and
any other actions necessary under all other applicable federal and state laws
and regulations.
(d) To authorize the Officers of the Company to take all actions
necessary to register the Account as a unit investment trust under the
Investment Company Act of 1940, and to take such related actions as they deem
necessary and appropriate to carry out the foregoing, including, without
limitation, the following: determining that the fundamental investment policy
of the Account shall be to invest or reinvest the assets in securities issued by
such investment companies registered under
<PAGE>
-2-
the Investment Company Act of 1940 as the Officers may designate pursuant to the
provisions of the variable life insurance policies issued by the Company;
establishing one or more subaccounts within the Account to which net premiums
under the variable life insurance policies will be allocated in accordance with
instructions received from contractowners, reserving to the officers the
authority to increase or decrease the number of subaccounts in the Account as
they deem necessary or appropriate; and investing each subaccount only in the
shares of a single mutual fund or a single portfolio of an investment company
organized as a series fund pursuant to the Investment Company Act of 1940.
(e) To authorize the Officers of the Company to deposit such amount in
the Account or in each subaccount thereof as may be necessary or appropriate to
facilitate the Account's operations; to transfer funds from time to time between
the Company's general account and the Account as deemed appropriate and
consistent with the terms of the variable life insurance policies and applicable
laws; and to establish criteria by which the Company shall institute procedures
to provide for a pass-through of voting rights to the owners of variable life
insurance policies issued by the Company, as required by applicable laws, with
respect to the shares of any investment companies which are held in the Account.
(f) To appoint Francis C. Cleary, Jr., Counsel, as agent for service of
process or the like for the Company to receive notices and communications from
the Securities and Exchange Commission with respect to such Registration
Statements or exemptive applications and amendments thereto as may be filed on
behalf of the Company concerning the Account or the variable life insurance
policies, and to exercise the powers given to such agent in the rules and
regulations of the Securities and Exchange Commission under the Securities Act
of 1933, the Investment Company Act of 1940, or the Securities Exchange Act of
1934.
(g) To authorize the Officers of the Company to do or cause to be done
all things necessary or desirable, as may be advised by counsel, to comply with,
or obtain exemptions from, federal, state or local statutes or regulations that
may be applicable to the issuance and sale of variable life insurance products
by the Company.
(h) To authorize the Company to act as the depositor for the Account and
provide all administrative services in connection with the establishment and
maintenance of the Account and in connection with the issuance and sale of
variable life insurance policies, all on such terms and subject to such
modifications as the Officers deem necessary or appropriate to effectuate the
foregoing.
<PAGE>
-3-
(i) To authorize the Officers of the Company to contract with a suitable
investment company under the Investment Company Act of 1940, the shares of which
shall be purchased by the Company in order to serve as an investment vehicle for
the Account and, further, that the Officers are authorized to do all things as
they deem necessary and appropriate to carry out the foregoing.
(j) To empower the Executive Committee to authorize the execution and
delivery of such instruments and such other action as it may deem necessary or
desirable in order to carry out the purpose and intent of this vote and to
comply with applicable federal or state laws and regulations.
<PAGE>
Exhibit 1.A.(3) (a)
DISTRIBUTION AGREEMENT
AGREEMENT, made as of the 26th day of August, 1993, by and between John
Hancock Mutual Life Insurance Company ("John Hancock") and, on its own behalf
and on behalf of its several existing and future separate accounts registered
under the Investment Company Act of 1940 (the "Investment Company Act"),
including without limitation John Hancock Variable Life Accounts U, V and S, and
John Hancock Variable Life Insurance Company ("JHVLICO").
WHEREAS, John Hancock is the principal underwriter of John Hancock
Variable Series Trust I ("the Fund"), a series mutual fund whose shareholders
are separate accounts of insurance companies, including JHVLICO, pursuant to an
Underwriting and Administrative Services Agreement dated as of January 15, 1986
("Underwriting Agreement");
WHEREAS, insurance companies issue variable life insurance and annuity
products under which net premiums or considerations are allocated to such
separate accounts for investment in the Fund;
WHEREAS, the Fund is registered as an open-end investment company under
the Investment Company Act;
WHEREAS, John Hancock is registered as a broker-dealer under the
Securities Exchange Act of 1934 ("1934 Act") and is a member of the National
Association of Securities Dealers, Inc.;
WHEREAS, JHVLICO will issue variable life insurance policies ("Policies")
whose net premiums are or will be allocated to JHVLICO's registered separate
accounts; and
WHEREAS, John Hancock and JHVLICO wish to enter into this Agreement
defining the conditions under which John Hancock will distribute the Contracts;
NOW THEREFORE, John Hancock and JHVLICO hereby agree as follows:
1. John Hancock shall offer for sale and sell Policies on behalf of
JHVLICO in each state and other jurisdictions in which such policies may be
lawfully sold. Such offering or sale shall be on such terms and conditions and
shall provide for such lawful compensation to John Hancock as John Hancock and
JHVLICO shall determine, provided that such terms, conditions and compensation
shall be as set forth in or not inconsistent with a prospectus meeting the
requirements of Section 10(a) of the Securities Act of 1933, as amended, and
containing the required information for or forming a part of a registration
statement effective under said Act.
Applications for Policies shall be solicited by insurance agents of
JHVLICO who are duly and appropriately licensed for the sale of such Policies in
each such state or other jurisdiction. John Hancock shall have responsibility
for arranging for such licensing. John Hancock shall review completed
applications for Policies in terms of suitability (except to the extent that
responsibility for suitability determinations is assumed by other broker-dealers
pursuant to the selling agreements referred to in paragraph 10 below) and
insurance underwriting and shall determine whether to accept or reject any
application in accordance with underwriting rules established by JHVLICO. John
Hancock will determine an insured's risk classification pursuant to its own
underwriting rules. Initial and subsequent premium payments under Policies shall
be made by check payable to JHVLICO. JHVLICO will refund any premiums paid if a
Policy is not issued or is surrendered under the short-term cancellation
provision.
<PAGE>
2. John Hancock shall pay its registered representatives acting as
JHVLICO's agents commissions and service fees in accordance with its then
applicable compensation rules and procedures. The maximum commission payable to
an agent for selling a policy shall be as set forth in Exhibit A appended
hereto. JHVLICO will reimburse John Hancock for commissions, any service fees
and for other direct and indirect expenses (including agency expense allowances,
general agent, district manager and supervisor compensation, agent training
allowances, deferred compensation and insurance benefits of agents, general
agents, district managers and supervisors, agency office clerical expenses and
advertising) actually incurred in connection with the marketing and sale of
Policies.
3. The books, accounts and records of John Hancock and JHVLICO as to all
transactions hereunder shall be maintained so as to disclose clearly and
accurately the nature and details of the transactions, including particularly
such accounting information as is necessary to support the reasonableness of the
amounts to be paid by JHVLICO hereunder and to ensure compliance with applicable
regulatory and reporting requirements. To the extent that either of John Hancock
or JHVLICO maintains on behalf of the other any records required to be
maintained by the other pursuant to 1940 Act Rules 30a- or 30a-2 under the
Investment Company Act or pursuant to 1934 Act Rules 17a-3 and 17a-4, such
records are the property of the party so required to maintain them and will be
surrendered promptly to that party upon its request.
4. This Agreement shall terminate automatically if it shall be assigned or
if the Underwriting Agreement is terminated. This Agreement may be terminated at
any time on 60 days' written notice to the other party hereto, without the
payment of any penalty, by John Hancock or JHVLICO.
5. John Hancock will pay the expenses of preparing and printing
registration statements, prospectuses and sales literature, all fees and
expenses in connection with John Hancock's qualification as a broker-dealer and
all other expenses relating to the offering, sale or delivery of Policies.
JHVLICO will reimburse John Hancock for registration fees under the Securities
Act of 1933, the costs associated with the preparation and printing of
registration statements, prospectuses and sales literature and for like expenses
actually incurred in connection with the offering, sale and delivery of
Policies.
6. In offering, selling and delivering Policies, John Hancock will duly
conform in all respects with the laws of the United States and of each state in
which Policies may be offered for sale by it pursuant to this Agreement.
Applications will be solicited by registered representatives of John Hancock or
any other broker-dealer who have been duly licensed. In connection with the
offering, sale or delivery of Policies, John Hancock will not give any
information or make any representation other than information and
representations contained in or not inconsistent with a prospectus meeting the
requirement of Section 10(a) of the Securities Act of 1933 and containing the
required information for or forming a part of a registration statement which is
effective under said Act.
7. John Hancock agrees that, in the absence of a fixed account or if no
suitable fixed-dollar policy is available from JHVLICO, it will issue a policy
of fixed benefit insurance without evidence of insurability in exchange for any
Policy whenever the Owner of a Policy elects to exchange the Policy in
accordance with its provisions.
8. JHVLICO undertakes to guarantee the performance of all of John
Hancock's obligations, imposed by Section 27(f) of the Investment Company Act of
1940, as amended, and Rules 6e-2(b)(l4)(vi), 6e-3(T)(b)(l3)(vi) and 27d-2(b)
adopted by the Securities and Exchange Commission, to make refunds of charges
required of the principal underwriter of Policies issued in connection with the
registered separate account.
<PAGE>
9. No provision of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which enforcement of the change, waiver, discharge or termination is
sought.
10. John Hancock and JHVLICO may agree with one or more broker-dealers
registered under the Securities Exchange Act of 1934 for the sale of the
Policies funded by the registered separate account. Any broker-dealer offering,
selling or delivering Policies will agree with John Hancock and JHVLICO to
conform duly in all respects with the laws of the United States and of each
state in which Contracts may be offered for sale by it. No agent or
representative of any such broker-dealer shall solicit applications for Policies
until duly licensed and appointed by JHVLICO as a life insurance agent of
JHVLICO in the appropriate jurisdiction. John Hancock will compensate other
broker-dealers as provided in the selling agreements with such other broker-
dealers, and JHVLICO will reimburse John Hancock for such amounts.
11. This Agreement shall be subject to the applicable provisions of the
Federal securities laws and the rules, regulations, and rulings thereunder,
including such exemptions as the Securities and Exchange Commission may grant,
and the terms hereof shall be interpreted and construed in accordance therewith.
12. John Hancock shall, in connection with its obligations hereunder,
comply with all laws and regulations, whether Federal or state, and whether
relating to insurance or securities, including but not limited to the
recordkeeping and sales supervision requirements of such laws and regulations
and rules of the National Association of Securities Dealers, Inc.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year above written.
Date: August 26, l993
John Hancock Mutual Life Insurance Company
By: WILLIAM L. BOYAN
----------------
William L. Boyan
President
Date: August 26, 1993
John Hancock Variable Life Insurance Company
By: HENRY D. SHAW/
--------------
Henry D., Shaw
President
<PAGE>
AMENDMENT TO DISTRIBUTION AGREEMENT
BY AND BETWEEN
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY
AND
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
AGREEMENT made this 1st day of August, 1994, by and between John Hancock
Mutual Life Insurance Company ("John Hancock") and John Hancock Variable Life
Insurance Company ("JHVLICO"), on its own behalf and on behalf of its several
existing and future separate accounts registered under the Investment Company
Act of 1940 (the "Investment Company Act"), including without limitation John
Hancock Variable Life Accounts U, V and S and John Hancock Variable Annuity
Account I.
WHEREAS, John Hancock and JHVLICO are parties to a distribution agreement
dated August 26, 1993 (the "Distribution Agreement") governing the terms and
conditions under which John Hancock has undertaken to offer for sale and sell on
behalf of JHVLICO, in each state and other jurisdiction where lawfully
permitted, certain variable life insurance policies, issued by JHVLICO, whose
net premiums are or will be allocated to JHVLICO's registered separate accounts;
WHEREAS, JHVLICO will continue to issue such variable life insurance
policies and will begin to issue variable annuity contracts whose net premiums
are or will be allocated to certain JHVLICO registered separate accounts;
WHEREAS, John Hancock and JHVLICO wish to enter into this Amendment
redefining the conditions and terms of the Distribution Agreement and Exhibit A
thereto;
NOW THEREFORE, in consideration of the premises and covenants contained
herein, John Hancock and JHVLICO hereby amend the Distribution Agreement and
Exhibit A thereto and agree to the following terms:
1. Any reference to "variable life insurance policies" in the Distribution
Agreement shall be read "variable life insurance policies and variable annuity
contracts"; and
2. Except as otherwise specified in this Amendment, any reference to
"Policies" or "policies" in the Distribution Agreement shall include variable
life insurance policies, issued by JHVLICO, whose net premiums are or will be
allocated to certain JHVLICO registered separate accounts and variable annuity
contracts, issued by JHVLICO, whose net premiums are or will be allocated to
certain JHVLICO registered separate accounts; and
3. The phrase "With respect to life insurance policies only" should be added
to the beginning of provision seven in the Distribution Agreement; and
4. The commission schedule for John Hancock Variable Annuity Account I should
be included in
<PAGE>
Exhibit A, as shown in the attachment to this Amendment.
IN WITNESS WHEREOF, each of the parties has caused this instrument to be
executed in its name and on its behalf by its duly authorized representative as
of the day and year indicated.
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY
BY: STEPHEN L. BROWN AUGUST 2, 1994
----------------- --------------
Stephen L. Brown (date)
Chairman and Chief Executive Officer
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
on its own behalf and on behalf of its
several existing and future registered
separate accounts
BY: HENRY D. SHAW AUGUST 5, 1994
-------------- --------------
Henry D. Shaw (date)
President
<PAGE>
EXHIBIT A
SCHEDULED PREMIUM POLICY (FLEX V)
Maximum commission of 50% of premium paid under Modified Schedule of
premiums in Policy year 1, 10% of such premiums in Policy years 2-4, and 3% of
any other premiums.
ANNUAL PREMIUM POLICY (VLI)
Maximum commission of 55% of premium paid in Policy year 1, 15% of
premium paid in Policy year 2, 10% of premium paid in Policy years 3-5, 5% of
premium paid in Policy years 6-10, and 3% of any other premiums.
SINGLE PREMIUM POLICY
Maximum commission of 3%.
FLEXIBLE PREMIUM VARIABLE SURVIVORSHIP POLICY (VEP)
Maximum commission of 45% of Target Premium paid in Policy year 1, 5%
of Target Premium paid in Policy years 2-5, 3% of Target Premium paid in any
subsequent years, and 3% of any excess premium in any year.
INDIVIDUAL DEFERRED COMBINATION FIXED/VARIABLE ANNUITY CONTRACT (INDEPENDENCE
PREFERRED)
Maximum commission of 3% of premium on contracts issued to Annuitants
issue age 0-70, maximum commission of 2% of premium on contracts issued to
Annuitants issue ages 71 and above.
REVISED FLEXIBLE PREMIUM POLICY (NEW FLEX V)
Maximum Commission of 50% of premium paid up to Required Premium in
Policy year 1, 8% of such premiums in Policy years 2-4, and 3% of any other
premiums.
UNIVERSAL VARIABLE POLICY (MVL)
Maximum commission of 50% of premium paid up to Required Premium paid
in Policy year 1, 6% of the Target Premium for Policy years 2-4; 3% of the
Target Premium in each year thereafter, and 3% of excess premium in any year.
<PAGE>
VARIABLE COLI POLICY (VCOLI)
Maximum commission of 14% of Target Premium in Policy years 1-10; 3% of
Target Premium in Policy years 11 and thereafter; and 2% of any excess premium
paid.
UNIVERSAL VARIABLE POLICY (MEVL )
Maximum commission of 20% of Target Premium in Policy year 1, plus 6%
of the Target Premium for the first Policy year which will be payable in each of
Policy years 2-4; 6% of the Target Premium paid for Policy years 2-4; 3% of the
Target Premium paid in each year thereafter; and 3% of excess premium in any
year.
UNIVERSAL VARIABLE POLICY (MVUL)
Maximum commission of 30% of Target Premium in Policy year 1, plus 10%
of Target Premium in Policy years 2 through 10, 4% of Target Premium in each
year thereafter, and 3.5% of excess premium in any year.
(Exhibit A, as amended, October 15, 1996)
<PAGE>
EXHIBIT 1.A.(3)(b)
VARIABLE CONTRACTS
SELLING AGREEMENT
John Hancock Mutual Life Insurance Company ("JHMLICO"), as the distributor and
principal underwriter, and ("the Broker/Dealer"),
enter into this agreement effective with its execution by the Broker/Dealer for
the purpose of authorizing the Broker/Dealer to solicit applications for
variable life insurance and annuity contracts ("Contracts") distributed by
JHMLICO on its own behalf and on behalf of John Hancock Variable Life Insurance
Company ("JHVLICO"), a subsidiary of JHMLICO. The parties represent as follows:
1. JHMLICO is engaged in the issuance of variable annuity contracts and
JHVLICO is engaged in the issuance of variable life insurance contracts,
both in accordance with Federal securities laws and the applicable laws of
those states in which the Contracts have been qualified for sale. The
Contracts are considered securities under the Securities Act of 1933;
therefore, distribution of the Contracts is made through JHMLICO as a
registered broker/dealer under the Securities Act of 1934 and as a member
of the National Association of Securities Dealers, Inc. ("NASD").
2. The Broker/Dealer certifies that it is a registered Broker/Dealer under the
Securities Exchange Act of 1934 and a member of the NASD. The
Broker/Dealer agrees to abide by all rules and regulations of the NASD,
including its Rules of Fair Practice, and to comply with all applicable
state and Federal laws and the rules and regulations of authorized
regulatory agencies affecting the sale of the Contracts.
3. The Broker/Dealer will select persons to be registered and supervised by it
who will be trained and qualified to solicit applications for the Contracts
in conformance with applicable state and Federal laws and regulations.
Persons so trained and qualified will be registered representatives of the
Broker/Dealer in accordance with the rules of the NASD and they will be
properly licensed to represent JHMLICO or JHVLICO or both in accordance
with the state insurance laws of those jurisdictions in which the Contracts
may lawfully be distributed and in which they solicit applications for such
Contracts.
4. The Broker/Dealer will take reasonable steps to ensure that its registered
representatives shall not make recommendations to applicants to purchase
Contracts in the absence of reasonable grounds to believe the purchase of
each Contract is suitable for the applicant. The procedure will include
review of all proposals and applications for Contracts for suitability and
completeness and correctness as to form as well as review and endorsement
on an internal record of the Broker/Dealer of
<PAGE>
-2-
the transactions. The Broker/Dealer will promptly forward to JHMLICO all
applications found suitable, together with any payments received with the
applications, without deduction or reduction. JHMLICO reserves the right
to reject any Contract application and return any payment made in
connection with an application which is rejected. Contracts issued on
applications accepted by JHMLICO or JHVLICO will be forwarded to the
registered representative of the Broker/Dealer for delivery to the Contract
owner.
5. The Broker/Dealer will perform the selling functions required by this
agreement only in accordance with the terms and conditions of the then
current prospectus applicable to the Contracts and will make no
representations not included in the prospectus or in any authorized
supplemental material. Any material prepared or used by the Broker/Dealer
or its registered representatives, which describes or must describe the
Contracts, or uses the name of JHVLICO, JHMLICO or the logos or Service
Marks of either must be approved by JHMLICO in writing prior to any such
use.
6. JHMLICO will provide Broker/Dealer with prospectuses, and any supplements
or amendments thereto, describing the Contracts subject to this Agreement.
JHMLICO is responsible for maintaining in effect in accordance with the
requirements of the Securities and Exchange Commission each Registration
Statement of which the prospectus is part. JHMLICO will immediately notify
Broker/Dealer of the issuance of any stop order or any Federal or state
regulatory proceeding which would prevent the sale of Contracts in any
state or jurisdiction.
7. Compensation payable on sales of the Contracts solicited by the
Broker/Dealer will be paid to the Broker/Dealer by JHMLICO in accordance
with the compensation schedules defined under the John Hancock Mutual Life
Insurance Company/M Financial Group Master Agreement dated December 5, 1991
and the Producer Agreements related thereto, as in effect at the time the
contract premiums or considerations are received by JHMLICO or JHVLICO.
Compensation to the registered representative for contracts solicited by
the registered representative will be governed by an agreement between the
Broker/Dealer and its registered representative. To the extent requested by
Broker/Dealer, registered representative compensation may be paid directly
to such registered representative by JHMLICO or JHVLICO. A portion of the
compensation otherwise payable to Broker/Dealer pursuant to the
compensation schedules applicable to the Contracts shall be payable to
Mutual Service Corporation (MSC) in accordance with the agreement in effect
between M Financial Group and MSC (currently 2% of first year commissions,
1% of renewal commissions). To the extent requested by Broker/Dealer and
its registered representative, registered representative compensation shall
be paid to JH Networking Insurance Agency ("NIA") for allocation to The
John Hancock/M Financial Group Deferred Commission Plan, as in effect at
the time the compensation becomes payable.
8. In the event of any surrender of a Contract within the 10 day "free look"
period or, in the case of a variable life insurance policy, within 10 days
after the mailing of the Notice of Withdrawal Right, any compensation
payable to Broker/Dealer or its registered representatives will not be
payable or will be refunded if priorly paid, in accordance with the terms
of the M Producer's Contract appended as Exhibit A to the Master Agreement.
<PAGE>
-3-
9. This agreement may not be assigned except by mutual consent and will
continue for an indefinite term, subject to the termination by either party
by ten days advance written notice to the other party, except that in the
event JHMLICO or the Broker/Dealer ceases to be a registered broker/dealer
or a member of the NASD, this agreement will immediately terminate. Upon
its termination, all authorizations, rights and obligations shall cease,
except the agreement in Section 11, the indemnifications in Section 12 and
the payment of any accrued but unpaid compensation to the Broker/Dealer.
10. For the purpose of compliance with any applicable Federal or state
securities laws or regulations, the Broker/Dealer acknowledges and agrees
that in performing the services covered by this agreement, it is acting in
the capacity of an independent "broker" or "dealer" as defined by the By-
Laws of the NASD and not as an agent or employee of either JHMLICO or
JHVLICO or any registered investment company. In furtherance of its
responsibilities as a broker or dealer, the Broker/Dealer acknowledges that
it is responsible for statutory and regulatory compliance in securities
transactions involving any business produced by its registered
representatives concerning the Contracts.
For the purpose of compliance with any applicable state insurance laws or
regulations, the Broker/Dealer acknowledges and agrees that only while
performing the insurance selling functions reflected by this agreement are
the Broker/Dealer's registered representatives acting as the licensed
insurance agents of JHMLICO or JHVLICO or both and in that capacity are
authorized only to solicit applications for the Contracts which will not
become effective until acceptance by JHMLICO or JHVLICO.
11. The Broker/Dealer and JHMLICO jointly agree to cooperate fully in any
insurance or securities regulatory investigation or proceeding or judicial
proceeding arising in connection with any Contract. Without limiting the
foregoing:
a. Broker/Dealer will be notified promptly of any customer complaint or
notice of any regulatory authority investigation or proceeding or
judicial proceeding received by JHMLICO with respect to any
Contract.
b. Broker/Dealer will promptly notify JHMLICO of any customer complaint
or notice of any regulatory authority investigation or proceeding or
judicial proceeding received by Broker/Dealer with respect to any
Contract.
12. (1) JHMLICO agrees to indemnify and hold harmless Broker/Dealer and each
person who controls or is associated with Broker/Dealer against any
losses, claims, damages or liabilities, joint or several, to which
Broker/Dealer or such controlling or associated person may become
subject under the 1933 Act or otherwise insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a
material fact required to be stated therein or necessary to make the
statements therein not misleading contained (i) in any Registration
Statement, any Prospectus or any document executed by JHMLICO or
JHVLICO specifically for the purpose of qualifying a Contract for sale
under the laws of any jurisdiction or (ii) in any written information
or sales material authorized for and supplied or furnished to
Broker/Dealer and its agents or representatives by
<PAGE>
-4-
JHMLICO, its employees or agents, in connection with the sale of the
Contract and JHMLICO will reimburse Broker/Dealer and each such
controlling person for legal or other expenses reasonably incurred by
Broker/Dealer or such controlling person in connection with
investigating or defending any such loss, claim, damage, liability or
action.
(2) Broker/Dealer agrees to indemnify and hold harmless such director or
officer may become subject under the 1933 Act and state JHMLICO and
each of its directors and officers against any insurance losses,
claims, damages or liabilities to which JHMLICO and any laws or
otherwise insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon:
(a)any unauthorized use of sales materials or any verbal or written
misrepresentations or any unlawful sales practices concerning a
Contract by Broker/Dealer or
(b)claims by agents or representatives or employees of Broker/Dealer
for commissions or other compensation or remuneration of any type
or
(c)failure by agents, representatives or employees of Broker/Dealer
to comply with all applicable state insurance laws and
regulations including but not limited to state licensing
requirements, rebate statutes and replacement regulations, and
the provisions of this Agreement; and Broker will reimburse
JHMLICO and any director or officer for any legal or other
expenses reasonably incurred by JHMLICO or such director or
officer in connection with investigating or defending any such
loss, claim, damage, liability or action.
(3) After receipt by a party entitled to indemnification of notice of
the commencement of any action, if a claim in respect thereof is to
be made against any person obligated to provide indemnification,
such indemnified party will notify the indemnifying party in writing
of the commencement thereof as soon as practicable thereafter, and
the omission so to notify the indemnifying party will not relieve it
from any liability except to the extent that the omission results in
a failure of actual notice to the indemnifying party, and such
indemnifying party is damaged solely as a result of the failure to
give such notice.
13. All notices to JHMLICO should be mailed to:
Mr. Henry D. Shaw, Senior Vice President
John Hancock Mutual Life Insurance Company
John Hancock Place
P. O. Box 111
Boston, MA 02117
<PAGE>
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All notices to the Broker/Dealer will be duly given if mailed to the
address shown below.
14. This agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts.
In reliance on the representations set forth and in consideration of the
undertakings described, the parties represented below do hereby contract
and agree.
John Hancock Mutual Life Broker-Dealer
Insurance Company
By:_______________________ By:________________________
Title:____________________ Title: ____________________
Date of Execution_________ Date of Execution__________
<PAGE>
EXHIBIT 1.A. (6) (a)
NO. D-30612
THE COMMONWEALTH OF MASSACHUSETTS
DEPARTMENT OF BANKING AND INSURANCE
Division of Insurance
CERTIFICATE OF AUTHORITY DATE: March 5, 1979
- ------------------------
THIS IS TO CERTIFY THAT THE
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
BOSTON MASSACHUSETTS
is duly organized under the laws of this Commonwealth, has fully complied with
the requirements of said laws applicable to it and that it is authorized to
issue policies and transact the kinds of business authorized under the Sections
of Chapter 175 of the General Laws of Massachusetts and amendments thereto
described by the following designations: (See Reverse Side for Legend)
6B 16A
This Certificate shall remain in effect for an indefinite term unless said
authority is amended or revoked in accordance with Law.
SEAL
IN WITNESS WHEREOF, I have
hereunto set my hand and
affixed the official seal of
this Division, at the City
of Boston, the date appearing
above.
MICHAEL J. SABBAGH
------------------
Michael J. Sabbagh
Commissioner of Insurance
<PAGE>
THE COMMONWEALTH OF MASSACHUSETTS
DIVISION OF INSURANCE
100 Cambridge Street, Boston 02202
MICHAEL J. SABBAGH
COMMISSIONER OF INSURANCE
F 2975
TO WHOM IT MAY CONCERN:
I, Michael J. Sabbagh, Commissioner of Insurance for the Commonwealth
of Massachusetts, hereby certify that the
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
of Boston, in the Commonwealth of Massachusetts, having no liabilities, except
reasonable organization expenses and having complied with the requirements of
the Laws of this Commonwealth relating to insurance companies, adopted a
proper system of accounting, employed a competent accountant, a competent
claim manager, a competent and experienced underwriter, and a competent and
experienced actuary, and that its officers and directors are of good repute
and competent to manage said company, is fully authorized to insure upon the
stock plan the business of health and life insurance now or hereafter
described or permitted by Clauses Sixth and Sixteenth of Section Forty-Seven,
Chapter One Hundred and Seventy-Five of the General Laws of the Commonwealth
of Massachusetts and the acts in amendment thereof and in addition thereto.
IN WITNESS WHEREOF, I have here-unto set my hand and affixed the
official seal of this Division at the City of Boston, this Fifth Day of
March, A.D. 1979.
MICHAEL J. SABBAGH
------------------
Michael J. Sabbagh
Commissioner of Insurance
SEAL
<PAGE>
EXHIBIT 1. A. (6) (b)
BY-LAWS
OF
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
ARTICLE I
OFFICES
The principal office and principal place of business of the Company in
the Commonwealth of Massachusetts shall be located in the City of Boston,
Suffolk County.
ARTICLE II
SHAREHOLDERS
SECTION 1. ANNUAL MEETING. The annual meeting of the shareholders shall
be held on the 2nd Wednesday following the 2nd Monday in April in each year at
the hour of 2:00 P.M., for the purpose of electing directors and for the
transaction of such other business as may come before the meeting. If the day
fixed for the annual meeting shall be a legal holiday, such meeting shall be
held on the next succeeding business day. If the election of directors shall not
be held on the day designated herein for any annual meeting, or at any
adjournment thereof, the board of directors shall cause the election to be held
at a meeting of the shareholders as soon thereafter as conveniently may be.
SECTION 2. SPECIAL MEETINGS. Special meetings of the shareholders may
be called by the chairman of the board, the vice chairman of the board, the
president, a majority of the board of directors or by the holders of not less
than one-fifth of all the outstanding shares of the corporation.
SECTION 3. PLACE OF MEETING. The board of directors may designate any
place, either within or without the Commonwealth of Massachusetts as the place
of meeting for any annual meeting or for any special meeting. A waiver of notice
signed by all shareholders may designate any place, either within or without the
Commonwealth of Massachusetts, as the place for the holding of such meeting. If
no designation is made, or if a special meeting be otherwise called, the place
of meeting shall be the principal office of the corporation in the Commonwealth
of Massachusetts.
SECTION 4. NOTICE OF MEETINGS. Written or printed notice stating the
place, day and hour of the meeting, and in the case of a special meeting, the
purpose or purposes for which the meeting is called, shall be delivered not less
than ten nor more than forty days before the date of the meeting, or in the case
of a merger or consolidation not less than twenty nor more than forty days
before the meeting, either personally or by mail, to each shareholder of record
entitled to vote at such meeting. If mailed, such notice shall be deemed to be
delivered when deposited in the United States mail, addressed to the shareholder
at his address as it appears on the records of the corporation, with postage
thereon prepaid.
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SECTION 5. CLOSING OF TRANSFER BOOKS OR FIXING OF RECORD DATE. For the
purpose of determining shareholders entitled to notice of or to vote at any
meeting of shareholders, or shareholders entitled to receive payment of any
dividend, or in order to make determination of shareholders for any other proper
purpose, the board of directors of the corporation may provide that the stock
transfer books shall be closed for a stated period but not to exceed, in any
case, forty days. If the stock transfer books shall be closed for the purpose of
determining shareholders entitled to notice of or to vote at a meeting of
shareholders, such books shall be closed for at least ten days, or in the case
of a merger or consolidation, at least twenty days, immediately preceding such
meeting. In lieu of closing the stock transfer books, the board of directors may
fix in advance a date as the record date for any such determination of
shareholders, such date in any case to be not more than forty days and, for a
meeting of shareholders, not less than ten days, or in the case of a merger or
consolidation, not less than twenty days, immediately preceding such meeting. If
the stock transfer books are not closed and no record date is fixed for the
determination of shareholders entitled to notice of or to vote at a meeting of
shareholders, or shareholders entitled to receive payment of a dividend, the
date on which notice of the meeting is mailed or the date on which the
resolution of the board of directors declaring such dividend is adopted, as the
case may be, shall be the record date for such determination of shareholders.
SECTION 6. VOTING LISTS. The agent having charge of the transfer books
for shares of the corporation shall make, at least ten days before each meeting
of shareholders, a complete list of the shareholders entitled to vote at such
meeting, arranged in alphabetical order, with the address of and the number of
shares held by each, which list, for a period of ten days prior to such meeting,
shall be kept on file at the principal office of the corporation and shall be
subject to inspection by any shareholder at any time during usual business
hours. Such list shall also be produced and kept open at the time and place of
the meeting and shall be subject to the inspection of any shareholder during the
whole time of the meeting. The original share ledger or transfer book, or a
duplicate thereof kept in this Commonwealth, shall be prima facie evidence as to
who are the shareholders entitled to examine such list or share ledger or
transfer book or to vote at any meeting of shareholders.
SECTION 7. QUORUM. A majority of the outstanding shares of the
corporation, represented in person or by proxy, shall constitute a quorum at any
meeting of shareholders; provided, that if less than a majority of the
outstanding shares are represented at said meeting, a majority of the shares so
represented may adjourn the meeting from time to time without further notice. If
a quorum is present, the affirmative vote of the majority of the shares
represented at the meeting shall be the act of the shareholders.
SECTION 8. PROXIES. At all meetings of shareholders, a shareholder may
vote by proxy executed in writing by the shareholder or by his duly authorized
attorney-in-fact. Such proxy shall be filed with the corporation before or at
the time of the meeting. No proxy shall be valid after eleven months from the
date of its execution, unless otherwise provided in the proxy.
SECTION 9. VOTING OF SHARES. Each outstanding share shall be entitled
to one vote upon each matter submitted to vote at a meeting of shareholders.
SECTION 10. VOTING OF SHARES BY CERTAIN HOLDERS. Shares standing in the
name of another corporation, domestic or foreign, may be voted by such officer,
agent, or proxy as the by-laws of such corporation may prescribe, or, in the
absence of such provision, as the board of directors of such corporation may
determine.
Shares standing in the name of a deceased person, a minor ward or an
incompetent person, may be voted by his administrator, executor, court appointed
guardian or conservator,
2
<PAGE>
either in person or by proxy without a transfer of such
shares into the name of such administrator, executor, court appointed guardian
or conservator. Shares standing in the name of a trustee may be voted by him,
either in person or by proxy.
Shares standing in the name of a receiver may be voted by such
receiver, and shares held by or under the control of a receiver may be voted by
such receiver without the transfer thereof into his name if authority so to do
be contained in an appropriate order of the court by which such receiver was
appointed.
A shareholder whose shares are pledged shall be entitled to vote such
shares until the shares have been transferred into the name of the pledgee, and
thereafter the pledgee shall be entitled to vote the shares so transferred.
Shares of its own stock belonging to this corporation shall not be
voted, directly or indirectly, at any meeting and shall not be counted in
determining the total number of outstanding shares at any given time, but shares
of its own stock held by it in a fiduciary capacity may be voted and shall be
counted in determining the total number of outstanding shares at any given time.
SECTION 11. INSPECTORS. At any meeting of shareholders, the chairman of
the meeting may, or upon the request of any shareholder shall, appoint one or
more persons as inspectors for such meeting.
Such inspectors shall ascertain and report the number of shares
represented at the meeting, based upon their determination of the validity and
effect of proxies; count all votes and report the results; and do such other
acts as are proper to conduct the election and voting with impartiality and
fairness to all the shareholders.
Each report of an inspector shall be in writing and signed by him or by
a majority of them if there be more than one inspector acting at such meeting.
If there is more than one inspector, the report of a majority shall be the
report of the inspectors. The report of the inspector or inspectors on the
number of shares represented at the meeting and the results of the voting shall
be prima facie evidence thereof.
SECTION 12. VOTING BY BALLOT. Voting on any question or in any election
may be viva voce unless the presiding officer shall order or any shareholder
shall demand that voting be by ballot.
ARTICLE III
DIRECTORS
SECTION 1. GENERAL POWERS. The business and affairs of the corporation
shall be managed by its board of directors. The board of directors shall
annually elect a chairman of the board, a vice chairman of the board, a
president, a secretary, a treasurer and such other officers as these by-laws may
provide. The board of directors shall at each annual meeting of the corporation
submit a full statement of the transactions of the corporation during the
previous year and of its financial condition.
SECTION 2. NUMBER, TENURE AND QUALIFICATIONS. The number of directors
of the corporation shall be not less than five nor more than nine. Each director
shall hold office until the next annual meeting of shareholders or until his
successor shall have been elected and qualified.
3
<PAGE>
SECTION 3. REGULAR MEETINGS. A regular meeting of the board of
directors shall be held without other notice than this by-law, immediately
after, and at the same place as, the annual meeting of shareholders. The board
of directors may provide, by resolution, the time and place, either within or
without the Commonwealth of Massachusetts, for the holding of additional regular
meetings without other notice than such resolution.
SECTION 4. SPECIAL MEETINGS. Special meetings of the board of directors
may be called by or at the request of the chairman of the board, the vice
chairman of the board, the president or any two directors. The person or persons
authorized to call special meetings of the board of directors may fix any place,
either within or without the Commonwealth of Massachusetts, as the place for
holding any special meeting of the board of directors called by them.
SECTION 5. NOTICE. Notice of any special meeting shall be given at
least five days previous thereto by written notice delivered personally or
mailed to each director at his business address, or by telegram. If mailed, such
notice shall be deemed to be delivered when deposited in the United States mail
so addressed, with postage thereon prepaid. If notice be given by telegram, such
notice shall be deemed to be delivered when the telegram is delivered to the
telegram company. Any director may waive notice of any meeting. The attendance
of a director at any meeting shall constitute a waiver of notice of such
meeting, except where a director attends a meeting for the express purpose of
objecting to the transaction of any business because the meeting is not lawfully
called or convened. Neither the business to be transacted at, nor the purpose
of, any regular or special meeting of the board of directors need be specified
in the notice or waiver of notice of such meeting.
SECTION 6. QUORUM. A majority of the number of directors then in
office, but no less than four in number, shall constitute a quorum for
transaction of business at any meeting of the board of directors, provided, that
if less than majority of such number of directors is present at said meeting, a
majority of the directors present may adjourn the meeting from time to time
without further notice.
SECTION 7. MANNER OF ACTING. The act of the majority of the directors
present at a meeting at which a quorum is present shall be the act of the board
of directors.
SECTION 8. ACTION WITHOUT A MEETING. Any action required or permitted
to be taken at any meeting of the board of directors may be taken without a
meeting if written consents thereto are signed by all members of the board of
directors and such written consents are filed with the minutes of proceedings of
the board.
SECTION 9 VACANCIES. Any vacancy occurring in the board of directors
and any directorship to be filled by reason of an increase in the number of
directors, may be filled by the directors or by the shareholders at an annual
meeting or at a special meeting of shareholders called for that purpose.
SECTION 10. COMPENSATION. The board of directors, by the affirmative
vote of a majority of directors then in office, and irrespective of any personal
interest of any of its members, shall have authority to establish reasonable
compensation of all directors for service to the corporation as directors,
officers or otherwise. By resolution of the board of directors the directors may
be paid their expenses, if any, of attendance at each meeting of the board.
4
<PAGE>
ARTICLE IV
EXECUTIVE COMMITTEE AND OTHER COMMITTEES
SECTION 1. HOW CONSTITUTED. By resolution adopted by the board of
directors, the board may designate one or more committees, including an
executive committee, each consisting of at least three directors. Each member of
a committee shall be a director and shall hold office during the pleasure of the
board. The chairman of the board, the vice chairman of the board and the
president shall be members of the executive committee.
SECTION 2. POWERS OF THE EXECUTIVE COMMITTEE. Unless otherwise provided
by resolution of the board of directors, the executive committee shall, during
the intervals between meetings of the board of directors, have and may exercise
all of the powers of the board of directors in the management of the business
and affairs of the corporation except the power to declare a dividend, to
authorize the issuance of stock, or to recommend to shareholders any action
requiring shareholders' approval.
SECTION 3. OTHER COMMITTEES OF THE BOARD OF DIRECTORS. To the extent
provided by resolution of the board, other committees shall have and may
exercise any of the powers that may lawfully be granted to the executive
committee.
SECTION 4. PROCEEDINGS, QUORUM AND MANNER OF ACTING. In the absence of
appropriate resolution of the board of directors, each committee may adopt such
rules and regulations governing its proceedings, quorum and manner of acting as
it shall deem proper and desirable, provided that the quorum shall not be less
than two directors. In the absence of any member of any such committee, the
members thereof present at any meeting, whether or not they constitute a quorum,
may appoint a member of the board of directors to act in the place of such
absent member.
SECTION 5. OTHER COMMITTEES. The board of directors may appoint other
committees, each consisting of one or more persons, who need not be directors.
Each such committee shall have such powers and perform such duties as may be
assigned to it from time to time by the board of directors, but shall not
exercise any power which may lawfully be exercised only by the board of
directors or a committee thereof.
ARTICLE V
OFFICERS
SECTION 1. NUMBER. The officers of the corporation shall be a chairman
of the board, a vice chairman of the board, a president, one or more vice
presidents (the number thereof to be determined by the board of directors), a
controller, a treasurer, and a secretary, and such assistant controllers,
treasurers, secretaries or other officers as may be elected or appointed by the
board of directors. Any two or more offices may be held by the same person
except that the chairman, vice chairman and president cannot also serve
simultaneously as secretary of the corporation, but no person shall execute,
acknowledge or verify any instrument in more than one capacity if such
instrument is required by law, the Articles of Organization or these by-laws to
be executed, acknowledged or verified by two or more officers. The chairman of
the board, vice chairman and the president shall be selected from among the
directors and may hold such offices only so long as they continue to be
directors. No other officer need be a director.
5
<PAGE>
SECTION 2. ELECTION AND TERM OF OFFICE. The officers of the corporation
shall be elected annually by the board of directors at the first meeting of the
board of directors held after each annual meeting of shareholders. If the
election of officers shall not be held at such meeting, such election shall be
held as soon thereafter as conveniently may be. Vacancies may be filled or new
offices filled at any meeting of the board of directors. Each officer shall hold
office until his successor shall have been duly elected and shall have qualified
or until his death or until he shall resign or shall have been removed in the
manner hereinafter provided. Election or appointment of an officer or agent
shall not of itself create contract rights.
SECTION 3. REMOVAL. Any officer or agent elected or appointed by the
board of directors may be removed by the board of directors whenever in its
judgment the best interest of the corporation would be served thereby, but such
removal shall be without prejudice to the contract rights, if any, or the person
so removed.
SECTION 4. VACANCIES. A vacancy in any office because of death,
resignation, removal, disqualification or otherwise, may be filled by the board
of directors for the unexpired portion of the term.
SECTION 5. CHAIRMAN OF THE BOARD. The chairman of the board shall be
the chief executive officer of the corporation, shall preside at all
shareholders' meetings and at all meetings of the board of directors and shall
be ex officio a member of all committees of the board of directors, except the
----------
audit committee, if any. Subject to the supervision of the board of directors,
he shall have general charge of the business, affairs and property of the
corporation and its officers, employees and agents. He shall sign (unless the
vice chairman of the board, the president or a vice president shall have signed)
certificates representing the stock of the corporation authorized for issuance
by the board of directors and shall have such other powers and perform such
other duties as may be assigned to him from time to time by the board of
directors.
SECTION 6. VICE CHAIRMAN OF THE BOARD. The vice chairman of the board
shall assist the chief executive officer of the corporation in his duties and,
at the request of or in the absence or disability of the chairman of the board,
he shall preside at all shareholders' meetings and at all meetings of the board
of directors and shall in general exercise the powers and perform the duties of
the chairman of the board. He shall sign (unless the chairman of the board, the
president or a vice president shall have signed) certificates representing the
stock of the corporation authorized for issuance by the board of directors and
shall have such other powers and perform such other duties as may be assigned to
him from time to time by the chairman of the board or the board of directors.
SECTION 7. PRESIDENT. The president shall be the chief operating
officer of the corporation. In the event of the absence or disability of both
the chairman of the board and the vice chairman of the board, he shall preside
at all shareholders' meetings and at all meetings of the board of directors and
shall in general exercise the powers and perform the duties of both. Subject to
the supervision of the board of directors and such direction and control as the
chairman of the board and the vice chairman of the board may exercise, he shall
have general charge of the operations of the corporation and its officers,
employees and agents. He shall sign (unless the chairman or the vice chairman of
the board or a vice president shall have signed) certificates representing the
stock of the corporation authorized the board of directors may for issuance by
the board of directors. Except as otherwise order, he may sign in the name and
on behalf of the corporation all deeds, mortgages, bonds, contracts, instruments
or agreements. He shall exercise such other powers and perform such other duties
as from time to time may be assigned to him by the board of directors.
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<PAGE>
SECTION 8. VICE PRESIDENT. The board of directors shall, from time to
time, designate and elect one or more vice presidents who shall have such powers
and perform such duties as from time to time may be assigned to them by the
board of directors or the president. At the request or in the absence or
disability of the president, the vice president (or, if there are two or more
vice presidents, then the senior of the vice presidents present and able to act)
may perform all the duties of the president and, when so acting, shall have all
the powers of and be subject to all the restrictions upon the president. Any
vice president may sign (unless the president or another vice president shall
have signed) certificates representing stock of the corporation authorized for
issuance by the board of directors.
SECTION 9. CONTROLLER AND ASSISTANT CONTROLLERS. The controller shall
be the principal accounting officer of the corporation and shall have general
charge of the books of account of the corporation. He shall cause to be prepared
annually a full and correct statement of the affairs of the corporation,
including a balance sheet and a financial statement of operations for the
preceding fiscal year. He shall perform all the duties incident to the office of
controller and such other duties as from time to time may be assigned to him by
the chairman or by the board of directors.
Any assistant controller may perform such duties of the controller as
the controller or the board of directors may assign and, in the absence of the
controller, he may perform all of the duties of the controller.
SECTION 10. TREASURER AND ASSISTANT TREASURER. The treasurer shall be
the principal financial officer of the corporation and shall have general charge
of the finances of the corporation. Except as otherwise provided by the board of
directors, he shall have general supervision of the funds and property of the
corporation. He shall sign (unless an assistant treasurer or secretary or
assistant secretary shall have signed) all certificates of stock of the
corporation authorized for issuance by the board of directors. He shall render
to the board of directors, whenever directed by the board, a report relating to
his custody of the funds and property of the corporation and of all his
transactions as treasurer; and as soon as possible after the close of each
fiscal year he shall make and submit to the board of directors a like report for
such fiscal year. He shall perform all the duties incident to the office of
treasurer and such other duties as from time to time may be assigned to him by
the chairman or the board of directors.
Any assistant treasurer may perform such duties of the treasurer as the
treasurer or the board of directors may assign, and, in the absence of the
treasurer, he may perform all the duties of the treasurer.
SECTION 11. SECRETARY AND ASSISTANT SECRETARY. The secretary shall (a)
keep the minutes of the shareholders' and of the board of directors' meetings in
one or more books provided for that purpose; (b) see that all notices are duly
given in accordance with the provisions of these by-laws or as required by law;
(c) be custodian of the corporate records and of the seal of the corporation and
see the seal of the corporation is affixed to all certificates for shares prior
to the issue thereof and to all documents, the execution of which on behalf of
the corporation under its seal is duly authorized in accordance with the
provisions of these by-laws;(d) keep a register of the post-office address of
each shareholder which shall be furnished to the secretary by such shareholder;
(e) sign with the chairman, vice chairman, president, or a vice president,
certificates for shares of the corporation, the issue of which shall have been
authorized by resolution of the board of directors; (f) have general charge of
the stock transfer books of the corporation; (g) in general perform all duties
incident to the office of secretary and such other duties as from time to time
may be assigned to him by the chairman or by the board of directors.
7
<PAGE>
Any assistant secretary may perform such duties of the secretary as
the secretary or the board of directors may assign, and, in the absence of the
secretary, he may perform all the duties of the secretary.
SECTION 12. SUBORDINATE OFFICERS. The board of directors from time to
time may appoint such other officers or agents as it may deem advisable, each of
whom shall have such title, hold office for such period, have such authority and
perform such duties as the board of directors may determine. The board of
directors from time to time may delegate to one or more officers or agents the
power to appoint any such subordinate officers or agents and to prescribe their
respective rights, terms of office, authorities and duties.
SECTION 13. REMUNERATION. The salaries or other compensation of the
officers of the corporation shall be fixed from time to time by resolution of
the board of directors, except that the board of directors may by resolution
delegate to any person or group of persons the power to fix the salaries or
other compensation of any subordinate officers or agents appointed in accordance
with the provisions of Section 12 hereof. No officer shall be prevented from
receiving a salary by reason of the fact that he is also a director of the
corporation.
SECTION 14. The board of directors may require any officer or agent of
the corporation to execute a bond to the corporation in such sum and with such
surety or sureties as the board of directors may determine, conditioned upon the
faithful performance of his duties to the corporation, Any secretary, treasurer,
assistant secretary and assistant treasurer of the corporation shall, in
accordance with the applicable provisions of the Massachusetts General Laws,
give a bond, with surety, payable to the corporation conditioned upon the
faithful performance of his or her duties and that such bond be executed by such
officer before performing any duties of his or her office.
SECTION 15. COMMISSIONS. No person shall be eligible as an elective or
appointed officer who has any interest in commissions or other compensation
based on premiums or considerations paid to the corporation on any policy or
contract, or on any extension of conversion thereof, unless such policy,
contract, extension or conversion was written and effective prior to his
election or appointment.
ARTICLE VI
CONTRACTS, LOANS, CHECKS AND DEPOSITS
SECTION 1. CONTRACTS. The board of directors may authorize any officer
or officers, agent or agents, to enter into any contract or execute and deliver
and instrument in the name of and on behalf of the corporation, and such
authority may be general or confined to specific instances.
SECTION 2. LOANS. No loans shall be contracted on behalf of the
corporation and no evidences of indebtedness shall be issued in its name unless
authorized by a resolution of the board of directors. Such authority may be
general or confined to specific instances.
SECTION 3. CHECKS, DRAFTS, ETC. All checks, drafts or other orders for
the payment of money, notes or other evidences of indebtedness issued in the
name of the corporation, shall be signed by such officer or officers, agent or
agents of the corporation and in such manner as shall from time to time be
determined by resolution of the board of directors.
8
<PAGE>
SECTION 4. DEPOSITS. All funds of the corporation not otherwise
employed shall be deposited from time to time to the credit of the corporation
in such banks, trust companies or other depositories as the board of directors
may select.
ARTICLE VII
CERTIFICATES FOR SHARES AND THEIR TRANSFER
SECTION 1. CERTIFICATES FOR SHARES. Certificates representing shares of
the corporation shall be in such form as may be determined by the board of
directors. Such certificates shall be signed by the chairman of the board, the
vice chairman of the board, the president or a vice president and by the
secretary or an assistant secretary and shall be sealed with the seal of the
corporation. All certificates for shares shall be consecutively numbered or
otherwise identified. The name of the person to whom the shares represented
thereby are issued, with the number of shares and date of issue, shall be
entered on the books of the corporation. All certificates surrendered to the
corporation for transfer shall be cancelled and no new certificate shall be
issued until the former certificate for a like number of shares shall have been
surrendered and cancelled, except that in case of a lost, destroyed or mutilated
certificate, a new one may be issued therefor upon such terms and indemnity to
the corporation as the board of directors may prescribe.
SECTION 2. TRANSFERS OF SHARES. Transfers of shares of the corporation
shall be made only on the books of the corporation by the holder of record
thereof or by his legal representative, who shall furnish proper evidence of
authority to transfer, or by his attorney thereunto authorized by power of
attorney duly executed and filed with the secretary of the corporation, and on
surrender for cancellation of the certificate for such shares. The person in
whose name shares stand on the books of the corporation shall be deemed the
owner thereof for all purposes as regards the corporation.
ARTICLE VIII
FISCAL YEAR
The fiscal year of the corporation shall begin on the first day
of January in each year and end on the last day of December in each year.
ARTICLE IX
WAIVER OF NOTICE
Whenever any notice whatever is required to be given under the
provisions of these by-laws or under the provisions of the Articles of
Incorporation, a waiver thereof in writing, signed by the person or persons
entitled to such notice, whether before or after the time stated therein, shall
be deemed equivalent to the giving of such notice.
ARTICLE X
INDEMNIFICATION
The corporation shall, except as hereinafter provided and subject
to limitations of law, indemnify each director, former director, officer and
former officer, and his heirs and legal representatives, for and against all
loss, liability and expense, whether heretofore or hereafter imposed upon or
incurred by him in connection with any pending or future action, suit,
proceeding
9
<PAGE>
or claim in which he may be involved, or with which he may be threatened, by
reason of any alleged act or omission as a director or officer of the
corporation. Such loss, liability and expense shall include, but not be limited
to, judgments, fines, court costs, reasonable attorneys' fees and the cost of
reasonable settlements. Such indemnification shall not cover (a) loss, liability
or expense imposed or incurred in connection with any item or matter as to which
such director or officer shall be finally adjudicated not to have acted in good
faith in the reasonable belief that his action was in the best interest of the
corporation or (h) loss, liability or expense imposed or incurred in connection
with any item or matter which shall be settled without final adjudication unless
such settlement shall have been approved as in the best interests of the
corporation by vote of the board of directors at a meeting in which no director
participates against whom any suit, proceeding or claim on the same or similar
grounds is then pending or threatened, or in the event no such vote can be
taken, unless, in the opinion of independent counsel selected by or in a manner
determined by the board of directors, there is no reasonable ground not to
approve such settlement as being in the best interests of the corporation. As
part of such indemnification, the corporation may pay expenses incurred in
defending any such action, suit, proceeding or claim in advance of the final
disposition thereof upon receipt of an undertaking by the person indemnified to
repay such payment if he should be determined not to be entitled to
indemnification hereunder. The foregoing rights of indemnification shall be in
addition to any rights to which any director, former director, officer, or
former officer, heirs or legal representatives may otherwise be lawfully
entitled.
ARTICLE XI
AMENDMENTS
These by-laws may not be altered, amended or repealed prior to the
issuance of a certificate of authority to the company, except by written consent
of subscribers representing at least two-thirds of the shares subscribed, and
the approval of the Commissioner of Insurance of Massachusetts. After a
certificate of authority is issued, the power to make, amend or repeal these by-
laws shall be vested in the board of directors.
Adopted this 25th day of February, 1979.
Certified to be a true copy of the By-Laws of John Hancock Variable
Life Insurance Company as adopted at the Initial Meeting of Incorporators and as
amended from time to time, up to and including the date set forth below.
10
<PAGE>
- --------------------------------------------------------------------------------
Exhibit 1.A.(10)
This application for Life Insurance is to (check one):
[ ]John Hancock Mutual Life Insurance Company (MasterPlan Plus only) or
[ ]John Hancock Variable Life Insurance Company (all other products)
which will sometimes hereinafter be referred to as "the Company."
-----------------------------------------
M Proprietary Products
=========================================
[LOGO OF JOHN HANCOCK APPEARS HERE]
=========================================
Instructions
1. Please print all answers legibly in black ink.
2. Any change or deletion must be initialed by the Proposed Insured or
Applicant.
3. Required medical information must be completed on all people
proposed for coverage unless they are to be medically examined.
(Form 156-MAJI-96)
4. Please indicate below the plan applied for.
Notice:
Any person who, with intent to defraud or knowing that he is facilitating a
fraud against an insurer, submits an application or files a claim containing a
false or deceptive statement is guilty of insurance fraud.
================================================================================
A. PLAN
================================================================================
[ ] MasterPlan Plus [ ] Variable MasterPlan Plus
[ ] Majestic UL-COLI [ ] Majestic UL-Survivorship (guaranteed
issue not available)
[ ] Majestic Variable UL [ ] Majestic Variable Estate Protection
[ ] Majestic 5
================================================================================
STATE OF ISSUE __ __
Form 156-MAJM-96
- --------------------------------------------------------------------------------
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Master Application Number ________________
================================================================================
B. Corporation
================================================================================
4. Address of Corporation
1. Name of Corporation
__________________________________
________________________________ STREET ADDRESS
NAME
- ------------------------------------- __________________________________
2. Name and title of Company Officer STREET ADDRESS
________________________________ __________________________________
NAME CITY STATE ZIP
________________________________ __________________________________
TITLE PHONE FAX
- ------------------------------------- ------------------------------------
3. Tax ID Number 5. Type of Business
__ __ - __ __ __ __ __ __ __ ------------------------------------
6. Corporate Fiscal Date (Month/Day)
___ / ___
- --------------------------------------------------------------------------------
================================================================================
C. CASE INFORMATION 3. Office Address
================================================================================
1. Office submitting case
Name________________________ _______________________________
Office number/Agency Code _______________________________
____________________________ _______________________________
- ------------------------------------- ---------------------------------------
2. Contact Information 4. Requested policy date_______
Name _______________________ If none specified, our regular
dating rules will apply
Phone Number _______________ ---------------------------------------
5. What payment, if any, is included
Fax Number _________________ with this application? $ ________
Bulletin Board Number ______
- --------------------------------------------------------------------------------
6. Billing Information
Name/Address/Phone for mailing
of policy statements and Name/Address/Phone for mailing of
correspondence other than Premium Notices: (If same as
premium notices: address to left, state "same")
_____________________________ ______________________________
NAME NAME
_____________________________ ______________________________
STREET ADDRESS STREET ADDRESS
_____________________________ ______________________________
CITY STATE ZIP CITY STATE ZIP
_____________________________ ______________________________
PHONE FAX PHONE FAX
Billing Frequency [ ]Annual [ ]Semi-Annual [ ]Qtly [ ]Monthly
- --------------------------------------------------------------------------------
================================================================================
D. BENEFICIARY
================================================================================
(If beneficiary is not superseded by any individual application submitted as
part of this case)
- --------------------------------------------------------------------------------
Page 2
Form 156-MAJM-96
<PAGE>
================================================================================
E. OWNERSHIP INFORMATION (LEAVE BLANK IF INDIVIDUAL IS OWNER)
================================================================================
1. Owner 3. Social Security or Tax ID Number (no
dashes)
__________________________________ __ __ __ __ __ __ __ __ __
NAME
- --------------------------------------------------------------------------------
2. Name and title of Owner/Trustee
(Authorized Business Official)
____________________________________
NAME TITLE
- --------------------------------------------------------------------------------
================================================================================
F. SUBACCOUNT INVESTMENT OPTIONS (VARIABLE PRODUCTS ONLY)
================================================================================
Percentages must be Whole and Total 100%
(If Investment Option not superseded by any individual application submitted
with this case)
Domestic Equities
_____% Growth & Income _____% Mid Cap Growth
_____% Equity Index _____% Mid Cap Value
_____% Large Cap Growth _____% Small Cap Growth
_____% Large Cap Value _____% Small Cap Value
_____% Real Estate Equities _____% Managed
_____% Special Opportunities
Bond, Money Market, & Fixed Income
_____% Money Market _____% Fixed Account
_____% Sovereign Bond _____% Strategic Bond
_____% Short-Term U.S. Government Bond
International M Proprietary
_____% International Equities _____% Edinburgh Overseas Equity
_____% International Opportunties _____% Turner Core Growth
_____% International Balanced _____% Frontier Capital Appreciation
Other
_____% __________ ____% _______________
_____% __________ ____% _______________
Telephone Transfer Option (Phonetran)
I direct the Company to act upon telephone instructions from the owner (a
trustee, if the owner is a trust; or an authorized business official, if the
owner is a business entity) to change future payment allocations, transfer
existing funds among the subaccount investment options, and process policy
loans, subject to the provisions of the Contract.
Telephone Subaccount Transfer [_] Yes [_] No
Telephone Loan [_] Yes [_] No
- --------------------------------------------------------------------------------
================================================================================
G. SUITABILITY (VARIABLE PRODUCTS ONLY)
================================================================================
1. Have you received [ ] Yes [ ] No 3. Are the policies [ ] Yes [ ]No
for the polices applied for? If and allocation of subaccount in
YES, Prospectus Date________________, accord with your insurance
objectives and your anticipated
2. Do you understand [ ] Yes [ ] No overall financial needs?
that the amount above the Total Sum
Insured at Issue and the entire 4. Have you received [ ] Yes [ ] No
amount of the Account Value for illustrations of benefits based on
each policy may increase or the Planned Premium for each of
decrease depending on investment the policies?
experience?
- --------------------------------------------------------------------------------
Page 3 Form 156-MAJM-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
H. SPECIAL REQUESTS
================================================================================
- --------------------------------------------------------------------------------
================================================================================
I. AGREEMENTS
================================================================================
All statements in this application are, to the best of my knowledge and
belief, true, complete, and correctly recorded.
I assent to this application and also agree that:
1. The statements and answers in this application are representations and
not warranties and attachments hereto will be relied upon and form the
basis of any insurance.
2. No information will be considered as having been given to John Hancock
unless it is written in an application.
3. No agent or medical examiner or any other person, except an officer of
John Hancock, is authorized to make or discharge contracts or waive or
change any of the conditions or provisions of any application or policy,
or to accept risks or pass on insurability. Any such unauthorized action
is not notice to or knowledge of the company. A medical examiner is not
an agent of the Company. In order for any of the above events to take
effect they must be provided for in writing signed by an officer of the
Company.
4. Any policy issued on the basis of this application will take effect as
of the Date of Issue, but (i) only upon approval of the application by
John Hancock and delivery to and acceptance by the Applicant of the
policy and payment of the minimum initial premium (in accordance with
the billing frequency chosen) and (ii) only if, at the time of such
delivery and payment, the person proposed for insurance in Parts A and B
of this application, if applicable, is living and has not consulted or
been examined or treated by a physician or practitioner since the latest
Part B was completed.
Provisions 5 and 6 apply only if a Variable Product is applied for
5. All benefits, payments, and values, including the Death Benefit and
Account or Cash Value, under any policy issued which is based upon the
investment experience of a separate investment account may increase or
decrease in accordance with the investment experience of the separate
investment account and are not guaranteed as to fixed dollar amount. The
Account Value or Cash Value may even decrease to zero.
6. The registered representative's signature below certifies that a
prospectus for the policy applied for has been given to the Proposed
Insured and/or to the Applicant and that no written sales materials
other than those approved by JHVLICO have been used.
______________________________________
Applicant's Signature
__________________________________
on__________________, 19______________ Witness (Producer must witness
Date where required by law)
- --------------------------------------------------------------------------------
================================================================================
J. SALE INFORMATION
================================================================================
Producer(s) Earning Credit for Case
Producer Name/Number Firm Name/Number % Credit
-------------------- ---------------- --------
____________________ ________________ ________
____________________ ________________ ________
____________________ ________________ ________
____________________ ________________ ________
- --------------------------------------------------------------------------------
Form 156-MAJM-96 Page 4
<PAGE>
[LOGO OF JOHN This application for Life Insurance is to (check one):
HANCOCK APPEARS
HERE] [_] John Hancock Mutual Life Insurance Company
(MasterPlan Plus only) or
[_] John Hancock Variable Life Insurance Company (all
other products)
This application is part of the case applied for in Master Application Number
__________(if applicable)
-----------------------------------------
M PROPRIETARY PRODUCTS
=========================================
[LOGO OF JOHN HANCOCK APPEARS HERE]
=========================================
All references to "Life 2" are applicable for Survivorship applications only
Part A Statements to the Company's Agent
================================================================================
A. PROPOSED INSURED/LIFE 1
================================================================================
1. Name of Proposed Insured (please 10. Address_____________________________
print): Street Address
First__________________ MI _______ ____________________________________
City State Zip
Last______________________________
11. Home Phone (___)___-____
2. Sex [_] Male [_] Female
12. Work Phone (___)___-____
3. Date of Birth__/__/__
Fax Number (___)___-____
4. Place of Birth____________________
State Country, if 13. Best time and place for Underwriting
not U.S.A. to call (in Proposed Insured's
local time zone)___________________
5. Soc. Sec. Number ___-__-____
6. Height __ft.__in. 7. Weight___lbs. 14. Has the Proposed Insured smoked or
used any other tobacco product, i.e.
8. Occupation_________________________ cigars, pipes, snuff, chewing
tobacco, etc., in the past 12 months
9. Driver's License State__ Number____ [_] Yes [_] No
- --------------------------------------------------------------------------------
================================================================================
B. SECOND PROPOSED INSURED/LIFE 2 (COMPLETE ONLY IF SURVIVORSHIP)
================================================================================
1. Name of Proposed Insured (please
print): 11. Address____________________________
Street Address
First__________________ MI _______
___________________________________
Last______________________________ City State Zip
2. Sex [_] Male [_] Female
12. Home Phone (___)___-____
3. Date of Birth__/__/__
13. Work Phone (___)___-____
4. Place of Birth____________________
Fax Number (___)___-____
State Country, if
not U.S.A.
5. Soc. Sec. Number ___-__-____ 14. Best time and place for
Underwriting to call (in Proposed
6. Height __ft.__in. 7. Weight___lbs. Insured's local time zone)________
8. Occupation_________________________
15. Has the Proposed Insured smoked or
9. Driver's License State__ Number____ used any other tobacco product,
i.e., cigars, pipes, snuff, chewing
10. What is Life 2's relationship to tobacco, etc., in the past 12
Life 1?____________________________ months?
[_] Yes [_] No
- --------------------------------------------------------------------------------
State of Issue__ __
Form 156-MAJ-96 Page 1
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
Part A Statements to the Company's Agent
================================================================================
C. OWNER
================================================================================
1. Policy Owner
[_] Trust
[_] Life 1 [_] Life 2 [_] Life 1 and Life 2, jointly
(Choices that include Life 2 are only for survivorship applications)
[_] Other (Complete question 6.)
2. Tax ID or Soc. Sec. Number __ __ __ __ __ __ __ __ __
- --------------------------------------------------------------------------------
Complete questions 3-5 if Owner is a Trust
3. Name of Trust _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
4. Trustee(s) ________________________________________________________________
5. Date of Trust __ /__/__
COMPLETE VERIFICATION OF TRUST FORM ON PAGE 8 IF POLICY IS TO BE OWNED BY A
TRUST
- --------------------------------------------------------------------------------
6. Other Owners, if any
NAME OF RELATIONSHIP SOC. SEC. DATE OF BIRTH
OWNERS TO LIFE 1 AND LIFE 2 NUMBER
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
- --------------------------------------------------------------------------------
7. Name/Address/Phone for mailing of policy statements and correspondence other
than premium notices:
___________________________________________________________________________
NAME
___________________________________________________________________________
STREET ADDRESS
___________________________________________________________________________
CITY STATE ZIP
___________________________________________________________________________
PHONE FAX
- --------------------------------------------------------------------------------
8. Name/Address/Phone for mailing of Premium Notices: (If same as address to
left, state "same")
___________________________________________________________________________
NAME
___________________________________________________________________________
STREET ADDRESS
___________________________________________________________________________
CITY STATE ZIP
___________________________________________________________________________
PHONE FAX
- --------------------------------------------------------------------------------
================================================================================
D. UNDERWRITING INFORMATION
================================================================================
1. In the past 7 years, has the
Proposed Insured(s) done, or
does the Proposed Insured(s) Life 1 Life 2
or intend to do any: (if survivorship)
a. flying except as a passenger [_]Yes [_]No [_]Yes [_]No
on regularly scheduled airlines?
(If yes, please complete aviation
questionnaire.)
b. skin/scuba diving, parachuting, [_]Yes [_]No [_]Yes [_]No
motorized racing, or other
hazardous sports? (If yes, please
complete avocation questionnaire.)
2. In the past 7 years has the Proposed [_]Yes [_]No [_]Yes [_]No
Insured(s) been convicted of two or
more motor vehicle moving violations
or had a driving license suspended
or revoked?
3. In the past 7 years has the Proposed [_]Yes [_]No [_]Yes [_]No
Insured(s) been convicted of the
violation of any criminal law, or are
any criminal charges now pending against
the Proposed Insured(s)?
4. Does the Proposed Insured(s) intend [_]Yes [_]No [_]Yes [_]No
to reside or travel outside the U.S.
or Canada?
If any of questions 2 - 4 are answered "yes", please explain:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 2
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Part A Statements to the Company's Agent
================================================================================
E. OTHER INSURANCE/REPLACEMENT INFORMATION
================================================================================
1. Give information indicated as to all insurance in force on the Proposed
Insured(s), including term riders.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Life 1/2 Company Issue Year Plan Amount ADB Amount Business Insurance?
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
[_] Yes [_] No
- --------------------------------------------------------------------------------------------
[_] Yes [_] No
- --------------------------------------------------------------------------------------------
[_] Yes [_] No
- --------------------------------------------------------------------------------------------
[_] Yes [_] No
- --------------------------------------------------------------------------------------------
[_] Yes [_] No
- --------------------------------------------------------------------------------------------
</TABLE>
2. Is any other insurance application now pending [_] Yes [_] No
or contemplated on the life of the Proposed
Insured(s)? (Include any Life, Disability, or Long
Term Care)
If yes, which Insured(s)__________________________________________________
If yes, what company(ies)/amounts?___________________________________________
3. Is the insurance applied for intended to replace or [_] Yes [_] No
change any life insurance or annuity now in force
on the Proposed Insured(s)? (If yes, give writing
company of insurance being replaced, policy number,
and insurance amont.)
Life 1 Life 2(if surivorship)
------------------------------------------------------------------------------
Company Policy # Amount Company Policy # Amount
------------------------------------------------------------------------------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
4. Has any application for life, disability, or
health insurance on the Proposed Insured(s) Life 1 [_] Yes [_] No
ever been declined, postponed, or modified? Life 2 [_] Yes [_] No
(If "Yes," give most recent company, including
John Hancock.)_______________________________________________________________
COMPANY APPROXIMATE DATE
- --------------------------------------------------------------------------------
================================================================================
F. SPECIAL REQUESTS
================================================================================
- --------------------------------------------------------------------------------
================================================================================
G. BENEFICIARY
================================================================================
Please indicate full name and relationship to the Proposed Insured(s).(please
print)
The right to change the beneficiary as to any proceeds is reserved to the
Owner(s).
- --------------------------------------------------------------------------------
Notice:
Any person who, with intent to defraud or knowing that he is facilitating a
fraud against an insurer, submits an application or files a claim containing a
false or deceptive statement is guilty of insurance fraud.
Page 3 Form 156-MAJ-96
<PAGE>
Part A Statements to the Company's Agent
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
PLEASE COMPLETE THIS PAGE IF MASTER PLAN PLUS IS DESIRED
================================================================================
================================================================================
H. BENEFITS
================================================================================
1. Target Data
a. Total amount applied for (Issue Target)______________________
b. Target Increase Percentage _________%
c. Target Increase Years ______________
d. Target Offset Amount _______________
- --------------------------------------------------------------------------------
2. Premium Cost Recovery
[_] life of policy or [_]___ policy years
Optional Cost Recovery Increase Percentage _______%
Optional Cost Recovery Increase Years ____________
- --------------------------------------------------------------------------------
3. Base
Base Amount (minimum $1000) $_______________
- --------------------------------------------------------------------------------
4. Whole Life Rider
Whole Life Rider Amount $__________________
- --------------------------------------------------------------------------------
5. AIP
a. AIP Level Premium to be billed, if any
$_____________________
b. AIP Optional Lump sum, if any
$_____________________
- --------------------------------------------------------------------------------
6. Vanish
First Vanish Test Year _____________
- --------------------------------------------------------------------------------
7. Premium billing interval
[_] Annual [_] Semiannual [_] Quarterly [_] Monthly
- --------------------------------------------------------------------------------
Note: The AIP amount will equal the target, less the base amount, less the whole
life rider amount.
Form 156-MAJ-96 Page 4(MasterPlan Plus)
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Part A Statements to the Company's Agent
================================================================================
PLEASE COMPLETE THIS PAGE IF VARIABLE MASTERPLAN PLUS IS DESIRED
================================================================================
================================================================================
H. BENEFITS
================================================================================
1. Basic Sum Insured (BSI) $________________
2. Death Benefit Option (choose one)
[_] Option A - Sum Insured only
[_] Option B - Sum Insured plus Account Value
3. [_] Additional Sum Insured (ASI) (check if desired)
a. (Check no more than one of the following)
[_] ASI of $_______________
[_] for life of policy or [_]_______Policy Years.
[_] with Total Sum Insured ______ increasing by
[_] ___% or [_] $_____ per year for
[_] life of policy or [_]_______policy years.
[_] Customized Level or Increasing Schedule
(list by policy year or years, ASI amount may not decrease)
Policy Year(s) ASI Amount
-------------- ----------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach seperate schedule)
b. [_] Premium Cost Recovery
[_] life of policy or [_] _____ policy years
4. Additional Benefits
[_] Continuation of Guaranteed Minimum Death
Benefit Option after 10th Policy Year
(not available with Option B)
================================================================================
I. Premium
================================================================================
1. Premium Billing Interval
[_] Annual [_] Semiannual
[_] Quarterly [_] Monthly
2. Planned Premium (Check a or b, or Target Premium will be billed.)
a. [_] $__________ annually for _______ year(s)
Optional: Annual increase of _____% OR
$___________ annually for ______ year(s)
Additional first year Planned Premium $_________
b. [_] Customized Schedule (list by policy year or years):
Policy Year(s) Planned Premium Amount
-------------- ----------------------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach seperate schedule)
- --------------------------------------------------------------------------------
================================================================================
J. VARIABLE PRODUCTS INFORMATION
================================================================================
IF ELECTING VARIABLE MASTERPLAN PLUS, COMPLETE SECTIONS K, L, & M ON PAGE 4A OF
THIS APPLICATION
- --------------------------------------------------------------------------------
Page 4 (Variable MasterPlan Plus) Form 156-MAJ-96
<PAGE>
John Hancock Part A Statements to the Company's Agent
================================================================================
PLEASE COMPLETE THIS PAGE IF MAJESTIC UL-COLI IS DESIRED
================================================================================
================================================================================
H. BENEFITS
================================================================================
1. Basic Sum Insured (BSI) $________________
2. Death Benefit Option (choose one)
[_] Option A - Sum Insured only
[_] Option B - Sum Insured plus Account Value
3. [_] Additional Sum Insured (ASI) (check if desired)
a. (Check no more than one of the following)
[_] ASI of $_______________
[_] for life of policy or [_]_______policy years.
[_] with Total Sum Insured increasing by
[_] ___% or [_] $_____per year for
[_] life of policy or [_]_______policy years.
[_] Customized Level or Increasing Schedule
(list by policy year or years, ASI amount may not decrease)
Policy Year(s) ASI Amount
-------------- ----------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
b. [_] Premium Cost Recovery
[_] life of policy or [_] _____ policy years
================================================================================
I. Premium
================================================================================
1. Premium Billing interval
[_] Annual [_] Semiannual
[_] Quarterly [_] Monthly
2. Planned Premium (Check a or b, or Target Premium will be billed.)
a. [_] $__________ annually for _______ year(s)
Optional: Annual increase of _____% OR
$___________ annually for ______ year(s)
Additional first year Planned Premium $_________
b. [_] Customized Schedule (list by policy year or years):
Policy Year(s) Planned Premium Amount
-------------- ----------------------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
- --------------------------------------------------------------------------------
================================================================================
J. LIFE INSURANCE DEFINITION
================================================================================
[_] Cash Value Accumulation Test [_] Guideline Premium Test
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 4 (Majestic UL-COLI)
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Part A Statements to the Company's Agent
================================================================================
PLEASE COMPLETE THIS PAGE IF MAJESTIC UL-SURVIVORSHIP IS DESIRED
================================================================================
================================================================================
H. BENEFITS
================================================================================
1. Basic Sum Insured (BSI) $________________
2. Death Benefit Option (choose one)
[_] Option A - Sum Insured only
[_] Option B - Sum Insured plus Account Value
[_] Option M - Sum Insured plus Optional Extra Death
Benefit with calculation beginning at policy year ______
3. [_] Additional Sum Insured (ASI) (check if desired)
a. (Check no more than one of the following)
[_] ASI of $_______________
[_] for life of policy or [_]_______policy years.
[_] with Total Sum Insured increasing by
[_] ___% or [_] $_____ per year for
[_] life of policy or [_]_______policy years.
[_] Customized Level or Increasing Schedule
(list by policy year or years, ASI amount may not decrease)
Policy Year(s) ASI Amount
-------------- ----------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
b. [_] Premium Cost Recovery
[_] life of policy or [_] _____ policy years
4. Additional Benefits
[_] Policy Split Option
- --------------------------------------------------------------------------------
================================================================================
I. Premium
================================================================================
1. Premium Billing Interval
[_] Annual [_] Semiannual
[_] Quarterly [_] Monthly
2. Planned Premium (Check a or b, or Target Premium will be billed.)
a. [_] $__________ annually for _______ year(s)
Optional: Annual increase of _____% OR
$___________ annually for ______ year(s)
Additional first year Planned Premium $_________
b. [_] Customized Schedule (list by policy year or years):
Policy Year(s) Planned Premium Amount
-------------- ----------------------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
- --------------------------------------------------------------------------------
Page 4 (Majestic UL-Survivorship) Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
PLEASE COMPLETE THIS PAGE MAJESTIC VUL IS DESIRED
================================================================================
================================================================================
H. BENEFITS
================================================================================
1. Basic Sum Insured (BSI) $________________
2. Death Benefit Option (choose one)
[_] Option A - Sum Insured only
[_] Option B - Sum Insured plus Account Value
[_] Option M - Sum Insured plus Optional Extra Death
Benefit with calculation beginning at policy year ___
3. Life Insurance Definition (choose one)
[_] Cash Value Accumulation Test
[_] Guideline Premium Test (Option M not allowed)
4. [_] Additional Sum Insured (ASI) (check if desired)
a. (Check no more than one of the following)
[_] ASI of $_______________
[_] for life of policy or [_]_______Policy Years.
[_] with Total Sum Insured increasing by
[_] ___% or [_] $_____ per year for
[_] life of policy or [_]_______Policy Years.
[_] Customized Level or Increasing Schedule
(list by policy year or years, ASI amount may not decrease)
Policy Year(s) ASI Amount
-------------- ----------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
b. [_] Premium Cost Recovery
[_] life of policy or [_] _____ policy years
5. Additional Benefits
[_] Guaranteed Minimum Death Benefit Option
(not available with Option B)
[_] Living Care Benefit (Accelerated Death Benefit)
- --------------------------------------------------------------------------------
================================================================================
I. Premium
================================================================================
1. Premium billing interval
[_] Annual [_] Quarterly
[_] Semiannual [_] Monthly-(premiumatic)
2. Planned Premium (Check a or b, or Target Premium will be billed.)
a. [_] $__________ annually for _______ year(s)
Optional: Annual Increase of _____% OR
$___________ annually for ______ year(s)
Additional first year Planned Premium $_________
b. [_] Customized Schedule (list by policy year or years):
Policy Year(s) Planned Premium Amount
-------------- ----------------------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
- --------------------------------------------------------------------------------
================================================================================
J. VARIABLE PRODUCTS INFORMATION
================================================================================
IF ELECTING VARIABLE MAJESTIC VUL, COMPLETE SECTIONS K, L, & M ON PAGE 4A OF
THIS APPLICATION.
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 4 (Majestic VUL)
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Part A Statements to the Company's Agent
================================================================================
PLEASE COMPLETE THIS PAGE MAJESTIC VEP IS DESIRED
================================================================================
================================================================================
H. BENEFITS
================================================================================
1. Basic Sum Insured (BSI) $________________
2. Death Benefit Option (choose one)
[_] Option A - Sum Insured only
[_] Option B - Sum Insured plus Account Value
[_] Option M - Sum Insured plus Optional Extra Death
Benefit with calculation beginning at policy year ____
3. [_] Additional Sum Insured (ASI) (check if desired)
a. (Check no more than one of the following)
[_] ASI of $_______________
[_] for life of policy or [_]_______Policy Years.
[_] with Total Sum Insured increasing by
[_] ___% or [_] $_____ per year for
[_] life of policy or for [_]_______Policy Years.
[_] Customized Level or Increasing Schedule
(list by policy year or years, ASI amount may not decrease)
Policy Year(s) ASI Amount
-------------- ----------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
b. [_] Premium Cost Recovery
[_] life of policy or [_] _____ policy years
4. Additional Benefits
[_] Guaranteed Minimum Death Benefit Option
(not available with Option B)
[_] Policy Split Option
- --------------------------------------------------------------------------------
================================================================================
I. Premium
================================================================================
1. Premium billing interval
[_] Annual [_] Quarterly
[_] Semiannual [_] Monthly-(premiumatic)
2. Planned Premium (Check a or b, or Target Premium will be billed.)
a. [_] $__________ annually for _______ year(s)
Optional: Annual increase of _____% OR
$___________ annually for ______ year(s)
Additional first year Planned Premium $_________
b. [_] Customized Schedule (list by policy year or years):
Policy Year(s) Planned Premium Amount
-------------- ----------------------
______-_______ $_____________ (1)
______-_______ $_____________ (2)
______-_______ $_____________ (3)
______-_______ $_____________ (4)
______-_______ $_____________ (5)
______-_______ $_____________ (6)
______-_______ $_____________ (7)
______-_______ $_____________ (8)
______-_______ $_____________ (9)
______-_______ $_____________ (10)
(If more space needed, attach separate schedule)
- --------------------------------------------------------------------------------
================================================================================
J. VARIABLE PRODUCTS INFORMATION
================================================================================
IF ELECTING MAJESTIC VEP, COMPLETE SECTIONS K, L, & M ON PAGE 4A OF THIS
APPLICATION
- --------------------------------------------------------------------------------
Page 4 (Majestic VEP) Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Part A Statements to the Company's Agent
================================================================================
PLEASE COMPLETE THIS PAGE IF MAJESTIC #5 IS DESIRED
================================================================================
Form 156-MAJ-96 Page 4 (Majestic #5)
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
THIS PAGE MUST BE COMPLETED FOR ALL VARIABLE PRODUCTS
================================================================================
================================================================================
K. PLAN
================================================================================
Choose One:
[_] Variable Master Plan Plus [_] Majestic VUL
[_] Majestic VEP [_] Other ________
- --------------------------------------------------------------------------------
================================================================================
L. SUBACCOUNT INVESTMENT OPTIONS
================================================================================
Percentages must be Whole and Total 100%
<TABLE>
<CAPTION>
Domestic Equities Bond, Money Market, & Fixed M Proprietary
<S> <C> <C>
_____% Growth & Income _____% Money Market _____% Edinburgh Overseas Equity
_____% Equity Index _____% Sovereign Bond _____% Turner Core Growth
_____% Large Cap Growth _____% Fixed Account _____% Frontier Capital Appreciation
_____% Large Cap Value _____% Short-Term U.S. Government Bond
_____% Real Estate Equities _____% Strategic Bond International
_____% Special Oppertunities _____% International Equities
_____% Mid Cap Growth _____% International Opportunities
_____% Mid Cap Value Other (if available) _____% International Balanced
_____% Small Cap Value _____% _______________
_____% Small Cap Value _____% _______________
_____% Managed
</TABLE>
Telephone Transfer Option (Phonetran)
I direct the Company to act upon telephone instructions from the owner (a
trustee, if the owner is a trust; or an authorized business official, if the
owner is a business entity) to change future payment allocations, transfer
existing funds among the subaccount investment options, and process policy
loans, subject to the provisions of the Contract.
Telephone Subaccount Transfer [_] Yes [_] No
Telephone Loan [_] Yes [_] No
- --------------------------------------------------------------------------------
================================================================================
M. SUITABILITY
================================================================================
1. Have you received a prospectus for [_] Yes [_] No
the policy applied for? (If YES, Prospectus Date: _____
2. Do you understand that the amount of Death Benefit [_] Yes [_] No
above any Guaranteed Minimum Death Benefit
and the entire amount of the Account Value may increase
or decrease depending on investment experience?
3. Is the policy and allocation of subaccounts in accord [_] Yes [_] No
with your insurance objectives and your
anticipated financial needs?
4. Have you received an illustration of benefits [_] Yes [_] No
based on your Planned Premium?
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 4A (Subaccount Investment Options)
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
THIS PAGE IS INTENTIONALLY LEFT BLANK.
Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
NOTICE OF POTENTIAL INCOME TAX IMPLICATIONS FOR MODIFIED ENDOWMENT
================================================================================
On November 10, 1988, the Technical and Miscellaneous Revenue Act of 1988
(TAMRA) was signed by President Reagan. This law changes the income taxation
of cash withdrawn form certain affected life insurance policies, called
Modified Endowment Contracts, or MECs. Due to the amount of premium you plan
to pay into this policy, you will be affected by this law.
It is important for you to understand that all distributions made from your
policy as applied for, including policy loans, withdrawals, partial surrenders
and certain dividends (if applicable), will be considered to be a distribution
of any gain. This means that if your policy is in a gain position when the
withdrawal is made (i.e., the value of your policy exceeds the amount you've
paid into it), you will owe ordinary income tax on the amount you withdraw. In
addition, a 10% penalty tax is imposed by the IRS on any taxable distribution
made prior to age 59 1/2, except on disability or if taken in the form
of an annuity.
The insurance proceeds payable to your beneficiary upon the death of the
Proposed Insured(s) will continue to be income tax free under current
legislation.
This notice is designed to inform you of the income taxation of life insurance
based upon our understanding of the information currently available. It is not
intended to provide you with legal advice, which neither John Hancock nor its
Representatives can give. Therefore, if you have questions as to the
applicability of any provision of the law, you should seek the advice of your
own tax and legal counsel.
If you wish to modify your planned premium payments to avoid creating a
Modified Endowment Contract, your Marketing Representative will assist you.
Otherwise, please sign the Acknowledgment below. Policyowner Acknowledgment
and Signature
I have read the above Notice of Potential Income Tax Implications. I
understand that my premium payments will cause the proposed policy to become a
Modified Endowment. I also understand the potential income tax effects of a
distribution from a Modified Endowment.
Policyowner Signature___________________________ Date ____________________
- --------------------------------------------------------------------------------
================================================================================
TAXPAYERIDENTIFICATIONNUMBER
================================================================================
Enter the Owner's taxpayer identification number in
the appropriate box. For most individual taxpayers,
this is the social security number.
---------------------------------------------
Social Security number
-- --
---------------------------------------------
OR
---------------------------------------------
Employer identification number
--
---------------------------------------------
I submit that the information provided above is true, correct, and complete.
Signature______________________________________ Date______________________
- --------------------------------------------------------------------------------
Page 5 Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Part B Statements to the Company's Agent
================================================================================
COMPLETE FOR NON-MEDICAL APPLICATIONS ONLY
================================================================================
Please give full details below for every "Yes" answer to Questions 1-4 as to
each person proposed for insurance, who is referred to below as "any person."
Be sure to include the names/addresses of any treatment providers.
1. Within the past 7 years, has any person been treated for or [_] Yes [_] No
had any known indication of disease of the heart or blood
vessels, chest pain or high blood pressure, stroke or
paralysis, diabetes, tumor or cancer, convulsions, kidney
disease, gastro-intestinal disease, mental or psychiatric
disorder, lung or respiratory disease or blood disorder?
2. Within the past 7 years, has any person had or been diagnosed [_] Yes [_] No
or treated by a physician or other medical practioner for
Human Immunodeficiency Virus or Acquired Immune Deficiency
Syndrome (AIDS)?
3. Within the past 7 years, has any person received counseling [_] Yes [_] No
or treatment regarding the use of alcohol drugs, or used any
illegal drugs or controlled substance?
4. Other than the above, within the past 7 years has any person [_] Yes [_] No
a) been admitted to a hospital or other medical or
rehabilitation facility? [_] Yes [_] No
b) consulted or been treated by a physician, or had a
physical exam or checkup? [_] Yes [_] No
5. Is any person currently taking any prescription drug?
If yes, who? What drugs? How frequently? __________________________________
_____________________________________________________________________________
6. If the Prosposed Insured(s) has a personal physician, please enter name,
address, and details below. Otherwise leave blank.
Life 1 Life 2
______________________________________ ______________________________________
FIRST NAME MI LAST NAME FIRST NAME MI LAST NAME
______________________________________ ______________________________________
STREET ADDRESS CITY STATE ZIP STREET ADDRESS CITY STATE ZIP
Date/Reason(s) last seen______________ Date/Reason(s) last seen______________
- -------------------------------------------------------------------------------
Details to "yes" answers.
Question No./Name__________________________________________
Condition__________________________________________________
___________________________________________________________
Date of onset_____________ Last occurrence_________________
Treatment/medication, if any_______________________________
Names/addresses of physicians/hospitals providing treatment
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
- --------------------------------------------------------------------------------
Details to "yes" answers.
Question No./Name__________________________________________
Condition__________________________________________________
___________________________________________________________
Date of onset_____________ Last occurrence_________________
Treatment/medication, if any_______________________________
Names/addresses of physicians/hospitals providing treatment
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
- --------------------------------------------------------------------------------
Details to "yes" answers.
Question No./Name__________________________________________
Condition__________________________________________________
___________________________________________________________
Date of onset_____________ Last occurrence_________________
Treatment/medication, if any_______________________________
Names/addresses of physicians/hospitals providing treatment
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
- --------------------------------------------------------------------------------
Details to "yes" answers.
Question No./Name__________________________________________
Condition__________________________________________________
___________________________________________________________
Date of onset_____________ Last occurrence_________________
Treatment/medication, if any_______________________________
Names/addresses of physicians/hospitals providing treatment
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
Please record any additional details on a separate piece of paper.
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 6
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE] Statements to the Company's Agent
================================================================================
AGREEMENT AND SIGNATURES
================================================================================
A. The statements and answers on pages 1 through 4 of Part A and Part B of the
attached application are, to the best of my knowledge and belief, complete,
true, and correctly recorded. All statements and answers are representations
and not warranties, and with all Parts B of the attached application will
form the basis for and be a part of any new policy or additional benefit
provision issued on this application.
B. Coverage will take effect as provided in and subject to the terms and
conditions of Conditional Temporary Insurance Agreement Form 156-MTIA-96
bearing the same date and number of this Part A if: (1) an advance payment of
at least the Minimum Temporary Insurance Premium is made with this Part A
which satisfies the requirements of such Conditional Temporary Insurance
Agreement; and (2) the amount applied for in this and all other applications
now pending in John Hancock Mutual Life Insurance Company and the John
Hancock Variable Life Insurance Company does not exceed $1,000,000 life
insurance if an individual policy or $3,000,000 life insurance if
survivorship policy.
C. If the applicant has a right to have the new policy issued as requested
without completing any Part B, the new policy will take effect as of its Date
of Issue, provided the initial payment has been made with this application.
D. In cases other than those described in B and C above, any new policy or
Benefit provision will take effect as of the Date of Issue of the policy,
but: (1) only on delivery to and receipt by the Applicant of the policy and
payment of the minimum initial premium thereon and (2) only if at the time of
such delivery and payment each person proposed for insurance in parts A and B
of this application is living and has not consulted or been examined or
treated by a physician or practitioner since the latest Part B pertaining to
such person was completed.
E. No agent or medical examiner is authorized to make or discharge contracts or
waive or change any of the conditions or provisions of any application,
policy, or receipt, or to accept risks or pass on insurability. Any such
unauthorized action is not notice to or knowledge of the company. A medical
examiner is not an agent of the Company.
Provisions F and G apply only if a Variable Product is applied for
F. All benefits, payments, and values, including the Death Benefit and Account
or Cash Value, under any policy issued which is based upon the investment
experience of a separate investment account may increase or decrease in
accordance with the investment experience of the separate investment account
and are not guaranteed as to fixed dollar amount. The Account Value or Cash
Value may even decrease to zero.
G. The registered representative's signature below certifies that a prospectus
for the policy applied for has been given to the Proposed Insured(s) and/or
to the Applicant and that no written sales materials other than those
approved by JHVLICO have been used:
Provisions H,I,J,K, and L apply if the policy applied for is a term conversion
H. The new policy will be a new, separate contract. If the new policy is issued
in exchange for the original insurance, all liability of the Company under
the original insurance will cease when the new policy takes effect. Until the
new policy is issued, coverage will still be in force under the original
policy. Coverage under the new policy will take effect as indicated in
Paragraph C above.
I. The application for the original insurance, unless such insurance is now
incontestable, and the application for each additional benefit provision
which is to be retained as specified on page 4 of this Application, unless
such provision is now incontestable, will also form a basis for and be a part
of the new policy.
J. If the original policy or benefit provision is being exchanged and is subject
to an assignment, the new policy will be subject to the same assignment
unless it is discharged or, in the case of a policy loan assignment, unless
the indebtedness has been repaid.
K. If the new policy is issued in exchange for the original policy, any
nonforfeiture option election applicable to the original policy will be
applicable to the new policy, if available, unless otherwise requested in
writing.
L. Ownership and control of any policy issued on the attached application will
be determined by the terms of the new policy.
-----------------------------------------------------------------------------
All statements and answers in this application are to the best of my
knowledge and belief, true and complete. They are representations and not
warranties. I assent to this application.
<TABLE>
<S> <C> <C>
___________________________Dated At_______________________________on______________________, 19_______
APPLICANT'S SIGNATURE CITY OR TOWN STATE DATE
___________________________Dated At_______________________________on______________________, 19_______
APPLICANT'S SIGNATURE CITY OR TOWN STATE DATE
___________________________Dated At_______________________________on______________________, 19_______
APPLICANT'S SIGNATURE CITY OR TOWN STATE DATE
____________________________________________ __________________________________________________
SIGNATURE OF LIFE 1, IF OTHER THAN APPLICANT WITNESS (Agent must witness where required by law)
____________________________________________
SIGNATURE OF LIFE 2, IF OTHER THAN APPLICANT
</TABLE>
Page 7 Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
VERIFICATION OF TRUST
================================================================================
1. Names of Proposed Insured(s) (please print):
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
2. Name of Trust:
___________________________________________________________
___________________________________________________________
___________________________________________________________
3. Name of Trustee:
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
4. Address of Trustee:
___________________________________________________________
STREET ADDRESS
___________________________________________________________
CITY STATE ZIP
5. Names of Additional Trustees:
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
___________________________________________________________
FIRST NAME MIDDLE INITIAL LAST NAME
6. Date of Trust ____ / ____ / ____
7. Trust established in state of _____________________________
8. Taxpayer ID# (when available) _____________________________
9. Application Date ____ / ____ / ____
- --------------------------------------------------------------------------------
The undersigned Trustee(s) certify that the following statements are true:
The Trustee(s) has the authority, either by the terms of the trust or applicable
state law, to own and purchase life insurance on the life of the Insured(s).
The Trustee(s) signing this document and the application are sufficient in
number to act on behalf of the trust.
The trust document containing the names of the Trustee(s) and the date of the
trust is in full force and effect and existed prior to the date of the
application for life insurance.
The trust empowers the Trustee(s) to exercise any and all rights associated with
owning life insurance policies and the Trustee(s) can exercise these rights
without the consent of the Insured(s). These rights include but are not limited
to: surrendering the policy, withdrawing policy values, borrowing against the
policy values, assigning the policy, transferring ownership, and changing the
beneficiary.
The undersigned Trustee(s) agrees that John Hancock Mutual Life Insurance and
Variable Life Companies shall not be responsible for the application or
disposition of the proceeds of the said policy purchased by the Trustee(s), and
the payment to the Trustee(s) of the proceeds of the policy shall fully
discharge John Hancock Mutual Life Insurance and Variable Life Companies from
all liability under the said policy to the extent of such payment. By signing
this verification form, the Trustee(s) verify that all information contained
herein is true and complete. We agree jointly and severally to indemnify the
insurer and its agents, and hold them harmless from and against all liability as
a result of claims, demands, or judgments against them arising from effecting
any insurance transactions in reliance on this certification.
Dated At ____________________________________ on _______________, 19________
CITY OR TOWN STATE DATE
_________________________________ ______________________________
SIGNATURE OF WITNESS SIGNATURE OF TRUSTEE
______________________________
SIGNATURE OF TRUSTEE
______________________________
SIGNATURE OF TRUSTEE
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 8
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
SUPPLEMENTARY UNDERWRITING INFORMATION REQUIRED IN ALL NON-COLI CASES
================================================================================
1. Please provide the Proposed Insured'(s) addresses for the last two years.
<TABLE>
<CAPTION>
Time at Residence Street Address City/Town State ZIP
<S> <C> <C> <C> <C>
_______yrs.______mos. See Part A, Page 1, Section A
-----------------------------------------------------------------------------
_______yrs.______mos. _____________________________________________________________________________
Life 2 (if survivorship)
_______yrs.______mos. See Part A. Page 1. Section A
-----------------------------------------------------------------------------
_______yrs.______mos. _____________________________________________________________________________
</TABLE>
2. Please provide the Proposed Insured'(s) employment details for the last two
years.
<TABLE>
<CAPTION>
Time Employed Employer Name Street Address City/Town State Zip
<S> <C> <C> <C> <C> <C>
_______yrs.______mos. _____________________________________________________________________________
_______yrs.______mos. _____________________________________________________________________________
Life 2 (if survivorship)
_______yrs.______mos. _____________________________________________________________________________
_______yrs.______mos. _____________________________________________________________________________
</TABLE>
3. How long have you known the Proposed Insured(s)?
Life 1?_____________ Life 2?___________ (if survivorship)
4. Are you related to the Proposed Insured(s)?
[ ] Yes (relationship)___________________ [ ] No
5. Has the Proposed Insured(s) been known by and
other names within the last ten years?
[ ] Yes (what names)_____________________[ ] No
6. Approximate annual income of Proposed Insured(s) Life 1$________________
Life 2 (if survivorship)$_______________
7. Approximate net worth of Proposed Insured(s) Life 1$__________________
Life 2 (if survivorship)$________________
- --------------------------------------------------------------------------------
From my knowledge and investigation, the proposed insured(s) is of temperate
habits and good moral character, and I know nothing affecting the insurability
of the Proposed Insured(s) not stated hereon, and I recommend his/her acceptance
without qualification. Proposed Insured(s) interviewed by me on ____/____/____
The Federal Fair Credit Reporting Act notice has been delivered as required.
AGENT
Is the insurance applied for intended to replace or change [ ] Yes [ ] No
any life insurance or annuity now in force on the Proposed
Insured(s)?
This application and report have been reviewed by me, and I recommend risk.
___________________________________________________
Producer
================================================================================
AUTHORIZATION FOR PREMIUMATIC BILLING (VARIABLE PRODUCTS ONLY)
================================================================================
I authorize the John Hancock Company to deduct the monthly premiums for the
policy applied for on this application from the bank account listed below. I
understand that the deduction will take place on or about the third Friday of
each month.
Transit Routing Number___________________ PC Control Number (if an existing
account)__________________
Bank Account Number__________________ EFTS Transfer Code__________
Name(s) of Depositor(s)__________________________
Signature(s) of Depositor(s)_____________________
- --------------------------------------------------------------------------------
================================================================================
SALE INFORMATION
================================================================================
Producer(s) Earning Credit for Case
Producer Name/Number Firm Name/Number %Credit
-------------------- ---------------- -------
______________________________ _______________ _____________
______________________________ _______________ _____________
______________________________ _______________ _____________
______________________________ _______________ _____________
- --------------------------------------------------------------------------------
Page 9 Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
PLEASE COMPLETE ANY SECTION BELOW THAT PERTAINS TO THIS CASE
================================================================================
I. COMPLETE FOR 1035 EXCHANGE CASES
1. [_] Check this box if this case is a 1035 Exchange.
- --------------------------------------------------------------------------------
II. COMPLETE ONLY IF ADVANCE PAYMENT IS BEING MADE
1. How much advance payment is included with its Part A? $______________
Write check to John Hancock Mutual Life(Masterplan Plus only) or John Hancock
Variable Life. Accept advance payment only if able to issue Receipt and
Conditional TIA.
(1035 external replacements, individual policies with face amounts over
$1,000,000, and survivorship policies with face amounts over $3,000,000 may
not be prepaid)
- --------------------------------------------------------------------------------
III.COMPLETE IF THIS IS A CONVERSION OF TERM INSURANCE
1. [_] This is a [_] Full [_] Partial Term Conversion from:
---------------------------------------------------------------------------
a.Policy Number/ Conversion Amount Amount Remaining
Insured Type Converted In Force
---------------------------------------------------------------------------
Name Base Policy Amount
-----------------------------------------------------------
________________ ___________ Rider
-----------------------------------------------------------
# ___________ Rider
---------------------------------------------------------------------------
b.Policy Number/ Conversion Amount Amount Remaining
Insured Type Converted In Force
---------------------------------------------------------------------------
Name Base Policy Amount
-----------------------------------------------------------
________________ ___________ Rider
-----------------------------------------------------------
# ___________ Rider
---------------------------------------------------------------------------
2. Is Insured(s) now totally disabled, or is Insured(s) receiving any payments
for sickness or injury? [_] Yes [_] No
(If yes, give details in the Special Requests Box F)
- --------------------------------------------------------------------------------
IV.COMPLETE FOR MODIFIED ENDOWMENTS
1. Does the sales illustration show that the policy applied for is a Modified
Endowment Contract (MEC)? [_] Yes [_] No
2. If yes, has the Policyowner signed the MEC Acknowledgement Form on Page 5?
[_] Yes [_] No
- --------------------------------------------------------------------------------
V. COMPLETE FOR BUSINESS INSURANCE
1. Authorized officer signing the application
Name _____________________________ Title ________________________________
2. Amount of business insurance already in force on Proposed Insured $_______
3. Proposed Insured's total compensation from the business for each of the
last two years.
Year ____ Compensation $ _________ Year ____ Compensation $ ___________
4. Total book value of business 5. Total market value of business
$ _________________________________ $ _________________________________
6. Year founded or incorporated ______ 7. % of business owned by Proposed
_____ Insured _______%
- --------------------------------------------------------------------------------
================================================================================
TO BE COMPLETED IN EVERY CASE.
================================================================================
Authorization and Acknowledgement
I hereby authorize any licensed physician, medical practitioner, hospital,
clinic, or other medical or medically related facility, insurance company, the
Medical Information Bureau or other organization, institution, or person that
has any records or knowledge regarding each of the undersigned to give to the
John Hancock Company or its reinsurer(s) any such information, including
information concerning every condition for which each has been under obser-
vation or treatment, including if the information specified contains informa-
tion related to treatment for drug and/or alcohol abuse or for psychiatric
and/or mental conditions, the history obtained, physical and laboratory
findings, diagnosis and treatment.
I acknowledge receipt of the Federal Fair Credit Reporting Act notice
which contains a notice concerning the Medical Information Bureau.
A copy of this authorization is as valid as the original. This authori-
zation is valid for 24 months from the date of the Proposed Insured(s)
signature
_____________________________________ ______________________________________
Signature of Life 1 Signature of Life 2(survivorship only)
_____________________ 19____ ________________________ 19 ____
Date Date
- --------------------------------------------------------------------------------
Form 156-MAJ-96 Page 10
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
RECEIPT AND CONDITIONAL TEMPORARY INSURANCE AGREEMENT
================================================================================
PLEASE READ CAREFULLY
. This Receipt and Conditional Temporary Insurance Agreement is governed by
Agreement B of the application bearing the same number as this receipt.
. There is a total temporary insurance coverage limit of $250,000 (individual)
or $1,000,000 (survivorship) on all applications pending on each person
proposed for insurance with John Hancock Mutual Life Insurance Company, John
Hancock Variable Life Insurance Company, and John Hancock Life Insurance
Company of America, regardless of the number of applications, and the face
amounts of the policies applied for.
- --------------------------------------------------------------------------------
Life 1_________________________________ Application Number___________________
Total Sum Insured
Life 2 (if survivorship)_______________ as Issue $___________________________
Plan___________________________________ Date___________________________
Received from___________________________ the sum of $____________paid
with application to John Hancock Company with the same date and number as
this receipt. This receipt is issued on the condition that any check, draft,
or other order for the payment of money is good and can be collected.
Please make all premium checks payable to the company under which your
application is being made (John Hancock Mutual Life or John Hancock Variable
Life), at John Hancock Place, Boston, MA. Do not make check payable to the
agent or leave the payee blank.
- --------------------------------------------------------------------------------
Conditions of Temporary Insurance Coverage (1) The amount received must be at
least the Minimum Temporary Insurance Premium, 2) Parts A and B of the
application and any required medical examinations and tests must be completed,
and 3) The following questions are answered "NO."
a. Within the past 7 years, has any person proposed for insurance consulted a
physician for, been diagnosed with, or had treatment for heart disease,
stroke, or cancer?___________
b. Has any person proposed for insurance been hospitalized within the past 6
months or been advised by a physician that he or she needs hospitalization
for any reason (other than for normal pregnancy)?____________
c. Within the past 7 years has any person received counseling or treatment
regarding the use of alcohol, drugs, illegal drugs, or used any illegal drug
or controlled substance.
d. Within the past 7 years has any person had a driving license suspended or
revoked?___________
Commencement of Temporary Insurance Coverage. If the above Conditions of
Temporary Insurance Coverage are met, coverage in accordance with the terms and
conditions of the policy applied for will take effect on the latest "Completion
Date" of all persons proposed for insurance. Each person's "Completion Date"
will be the date of completion of the latest of the Parts A and B of the
application and any medical examinations and tests required by the Company's
published initial underwriting requirements, according to the age and amount
applied for.
Amount of Temporary Insurance Coverage. The amount of Coverage will be the
lesser of: 1) the amount applied for in the application; and 2) $250,000 if
individual life insurance or $1,000,000 if survivorship life insurance. However,
the amount of coverage will never exceed $250,000 (individual) or $1,000,000
(survivorship) less the total of all amounts payable under all conditional
temporary insurance agreements issued by John Hancock Mutual Life Insurance
Company, John Hancock Variable Life Insurance Company, and John Hancock Life
Insurance Company of America in connection with any insurance application
pending on the Proposed Insured(s) as of the date of this Receipt and
Conditional Temporary Insurance Agreement. No benefit will be paid under this
Agreement if the Proposed Insured'(s) death(s) results, directly or indirectly,
or wholly or partially, from intentionally self-inflicted injury while sane, or
self-inflicted injury while insane.
(continued on reverse)
- ------------------------------------------------------------------------------
Page 11 Form 156-MTIA-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
Receipt and Conditional Temporary Insurance Agreement (continued)
Fraud Warning. Any person who, with intent to defraud or knowing that he is
facilitating a fraud against an insurer, submits an application or files a claim
containing a false or deceptive statement is guilty of insurance fraud.
Termination of Temporary Insurance Coverage. The conditional temporary
insurance coverage provided by this Agreement will end on the earliest of :
1) The commence ment of coverage under the policy issued on the basis of the
application.
2) The date the Applicant refuses to accept the policy as offered for
delivery.
3) The date the application is declined or deemed declined (Policy is deemed
declined if not approved within 60 days of the latest Completion Date.).
Notice of any such declination will be furnished.
If termination occurs under 2) or 3) above, the amount paid will be returned on
surrender of this Receipt. In no event will coverage be in effect under both
this Conditional Temporary Insurance Agreement and any policy issued on the
basis of the application, and any amendment thereto, with the same date and
number as this Receipt and Conditional Temporary Insurance Agreement.
Commencement of Coverage Under the Policy. Coverage under any ploicy issued on
the basis of the application will replace the coverage provided by this
Agreement as of the policy Date of Issue but only if:
1) The policy is delivered to and accepted by the Applicant while all persons
proposed for insurance are living and within 60 days of the latest
"Completion Date," and
2) The balance of any premium required for the policy as delivered is paid
while all persons proposed for insurance are living and within 60 days
after the latest "Completion Date."
Minimum Temporary Insurance Premium. The Minimum Temporary Insurance Premium is
one month's proportionate part of the premium according to the Company's
published rates for the policy and premium interval applied for.
(check one)[_] John Hancock Mutual Life Insurance Company (MasterPlan Plus only)
[_] John Hancock Variable Life Insurance Company (all other products)
_____________________________ ---------------------------------------
LIFE 1 DATE Not Valid unless Advance Payment has
been made, the application is complete,
_____________________________ and the questions on the front are all
LIFE 2 (IF SURVIVORSHIP) DATE answered "No."
Confirm the coverage provided by this
_____________________________ Agreement with your agent.
PRODUCER DATE ---------------------------------------
================================================================================
- --------------------------------------------------------------------------------
(To be used in event of refund of payment)
Received of the John Hancock Company, Boston, Massachusetts, the sum of $_____
The amount mentioned in the receipt on the reverse side hereof.
Date_____________, 19____ _________________________________________________
- --------------------------------------------------------------------------------
Form 156-MTIA-96 Page 12
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
================================================================================
REQUEST FOR PREMIUMATIC BILLING: PLEASE SEND COPY TO M SERVICE
================================================================================
Please make sure that the Premiumatic Authorization on Page 9 is completed and
signed.
Name of insured ______________________________ Policy Number _________________
Please attach either 1) a copy of the Payor's check for the initial premium; or
2) a copy of a cancelled check. (Note: Do not send voided check until policy
is issued.)
1. Complete on if payment of initial premium accompanies this form.
Attached is a check, money order, or other (_______________) in the amount
of $________________________
2. Special Comments/Premiumatic Requests:
Firm _________________________________
Producer _____________________________ Date ___________________________
- --------------------------------------------------------------------------------
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
================================================================================
DETACH THIS SECTION AND GIVE TO CLIENT
================================================================================
JOHN HANCOCK MUTUAL LIFE JOHN HANCOCK VARIABLE LIFE
INSURANCE COMPANY INSURANCE COMPANY
Notice to Each Person Proposed for New or Changed Coverage
As required by the Federal Fair Credit Reporting Act, we wish to advise that
in connection with the insurance (or change in coverage) applied for, an
investigative consumer report may be requested by the Company with respect to
any person proposed for insurance or change in coverage. Such a report may
contain information as to character, general reputation, personal
characteristics and mode of living of such person, and is customarily obtained
through personal interviews with neighbors, friends, or associates of the
subject of the report. You have a right to make a written request for
information as to the nature and scope of any such report under the Act by
writing to:
John Hancock
P.O. Box 111 John Hancock Place
Underwriting and Issue - Federal Fair Credit Control C-5
Boston, Massachusetts 02117
For identification purposes, your request must include your full name,
birthdate, address, and any applicable policy number.
- --------------------------------------------------------------------------------
================================================================================
DETACH THIS SECTION AND GIVE TO CLIENT
================================================================================
Information obtained about your insurability will be treated as confidential.
The Company may, however, make a brief report thereon to the Medical Information
Bureau, a non-profit membership organization of the life insurance companies
which operates an information exchange on behalf of its members. If you apply
to another Bureau member company for life or health insurance coverage, or a
claim for benefits is submitted to such a company, the Bureau, upon request,
will supply such company with the information it may have in its file.
Upon receipt of a request from you, the Bureau will arrange disclosure of any
information it may have in your file. If you question the accuracy of
information in the Bureau's file, you may contact the Bureau and seek a
correction in accordance with procedures similar to those set forth in the
Federal Fair Credit Reporting Act. The address of the Bureau's information
office is:
Medical Information Bureau
Post Office Box 105, Essex Station
Boston, Massachusetts 02112
Telephone (617) 426-3660
The Company may also release limited information in its file to other
properly authorized life insurance companies to which you may apply for life or
health insurance, or to which a claim for benefits may be submitted.
Information may be released to proper regulatory agencies on request and to
insurance companies in connection with reinsurance.
Underwriting actions are not reported to the Bureau, nor is the Company
informed through the Bureau of the underwriting actions of other companies to
whom you may have applied for life or health insurance.
- --------------------------------------------------------------------------------
Page 13 Form 156-MAJ-96
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
-----------------------------------
M PROPRIETARY PRODUCTS
===================================
[LOGO OF JOHN HANCOCK APPEARS HERE]
===================================
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
[LOGO OF JOHN HANCOCK APPEARS HERE]
Form 156-MAJ-96
<PAGE>
EXHIBIT 9
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
John Hancock Variable Annuity and Variable Life Insurance Accounts
------------------------------------------------------------------
POWER OF ATTORNEY
The undersigned member of the Board of Directors of John Hancock Variable
Life Insurance Company does hereby constitute and appoint Henry D. Shaw, Francis
C. Cleary, Thomas J. Lee, Sandra M. DaDalt and Laura M. Mangan, and each of them
individually, with full power of substitution, his or her true and lawful
attorneys and agents to execute, in the name of, and on behalf of, the
undersigned as a member of said Board of Directors, the Registration Statements
under the Securities Act of 1933 and the Investment Company Act of 1940, and
each amendment to the Registration Statements, to be filed for John Hancock
Variable Life Account V, John Hancock Variable Annuity Account I and any other
variable annuity or variable life insurance account of John Hancock Variable
Life Insurance Company with the Securities and Exchange Commission and to take
any and all action and to execute in the name of, and on behalf of, the
undersigned as a member of said Board of Directors or otherwise any and all
instruments, including applications for exemptions from such Acts, which said
attorneys and agents deem necessary or advisable to enable any variable annuity
or variable life insurance account of John Hancock Variable Life Insurance
Company to comply with the Securities Act of 1933, as amended, the Investment
Company Act of 1940, as amended, and the rules, regulations and requirements of
the Securities and Exchange Commission in respect thereof; and the undersigned
hereby ratifies and confirms as his or her own act and deed all that each of
said attorneys and agents shall do or cause to have done by virtue hereof. Each
of said attorneys and agents shall have, and may exercise, all of the powers
hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand on
the date shown.
DATE DIRECTOR
---- --------
9-15-94 /s/ HENRY D. SHAW
9-15-94 /s/ JOSEPH A. TOMLINSON
9-15-94 /s/ ROBERT R. REITANO
9-15-94 /s/ THOMAS J. LEE
9-15-94 /s/ FRANCIS C. CLEARY, JR.
10-12-94 /s/ BARBARA L. LUDDY
10-13-94 /s/ MICHELE G. VAN LEER
3-9-95 /s/ ROBERT S. PASTER
4-5-95 /s/ DAVID F. D'ALESSANDRO
