<PAGE> 1
As filed with the Securities and Exchange Commission on October 11, 2000
Registration No. 333-_____
811-07798
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM S-6
------------------------------
FOR THE REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
------------------------------
A. Exact name of trust:
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
VARIABLE UNIVERSAL LIFE SEPARATE ACCOUNT - I
B. Name of depositor:
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
C. Complete address of depositor's principal executive office:
51 Madison Avenue
New York, New York 10010
D. Name and complete address of agent for service:
Marijo F. Murphy, Esq.
New York Life Insurance and
Annuity Corporation
51 Madison Avenue
New York, New York 10010
Copy to:
Jeffrey S. Puretz, Esq. Sheila K. Davidson, Esq.
Dechert Price & Rhoads Senior Vice President
1775 Eye Street, N. W. and General Counsel
Washington, D.C. 20006-2401 New York Life Insurance Company
51 Madison Avenue
New York, New York 10010
E. Title of securities being registered:
Units of interests in the Separate Account under Single Premium
Variable Universal Life Insurance Policies.
F. Approximate date of proposed public offering: As soon as practicable
after the effective date of the Registration Statement.
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
Securities and Exchange Commission, acting pursuant to Section 8(a), may
determine.
<PAGE> 2
CROSS REFERENCE SHEET
INFORMATION REQUIRED IN A PROSPECTUS
<TABLE>
<CAPTION>
Item of Form N-8B-2 Prospectus Caption
------------------- ------------------
<S> <C>
1 Glossary of Special Terms; Separate
Account
2 Who We Are
3 Not Applicable
4 Distribution of the Policies
5 Separate Account
6 Separate Account
7 Not Applicable
8 Not Applicable
9 Legal Proceedings
10 Policy Overview; Summary of Fees and
Charges; Who We Are; Death Benefit
Guarantee; Charges and Deductions; Your
Policy; Premiums; Separate Account; The
Eligible Portfolios; Transfers, Dollar Cost
Averaging and Account Rebalancing; Life
Insurance Benefits and Cash Values;
Death Benefit Guarantee; Making
Withdrawals from Your Policy; Loans;
Lapse and Reinstatement; Additional
Benefits through Riders and Options;
Distribution of the Policies
11 Premiums; Life Insurance Benefits and
Cash Values; Death Benefit Guarantee;
Separate Account
12 The Eligible Portfolios; Who We Are;
Distribution of the Policies
</TABLE>
<PAGE> 3
<TABLE>
<S> <C>
13 Policy Overview, Life Insurance Benefits
and Cash Value; Death Benefit Guarantee;
Making Withdrawals from Your Policy;
Loans; Premiums, Separate Account, The
Eligible Portfolios; Charges and
Deductions; Distribution of the Policies;
Your Policy; Separate Account; The Eligible
Portfolios; Transfers; Dollar Cost Averaging
and Account Rebalancing
14 Policy Overview; Premiums; Lapse and
Restatement; The Eligible Portfolios
15 Policy Overview; Premiums; Lapse and
Reinstatement; Your Policy
16 Policy Overview; Separate Account; Life
Insurance Benefits and Cash Value;
Premiums; The Eligible Portfolios; Transfers;
Dollar Cost Averaging and Account Rebalancing
17 Policy Overview; Life Insurance Benefits
and Cash Value; Death Benefit Guarantee;
Separate Account; Making Withdrawals
from Your Policy; Loans
18 Policy Overview; Life Insurance Benefits
and Cash Value; Death Benefit Guarantee;
Separate Account; Making Withdrawals
from Your Policies;
</TABLE>
2
<PAGE> 4
<TABLE>
<S> <C>
Loans; The Eligible Portfolios; Transfers;
Dollar Cost Averaging and Account
Rebalancing
19 Your Policy
20 Not Applicable
21 Making Withdrawals from Your Policy
22 Not Applicable
23 Not Applicable
24 Other Information
25 Who We Are
26 Charges and Deductions; Loans; Making
Withdrawals from Your Policy; Lapse &
Reinstatement; Other Information; Your
Policy
27 Who We Are
28 Directors and Officers of NYLIAC
29 Who We Are
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Not Applicable
36 Not Applicable
37 None
38 Distribution of the Policies
</TABLE>
3
<PAGE> 5
<TABLE>
<S> <C>
39 Distribution of the Policies
40 Distribution of the Policies
41 Distribution of the Policies
42 Not Applicable
43 Not Applicable
44 Life Insurance Benefits and Cash Values;
Death Benefit Guarantee; Premiums;
Your Policy; Federal Tax Considerations
45 Not Applicable
46 Life Insurance Benefits and Cash Values;
Death Benefit Guarantee; Premiums;
Loans, Making Withdrawals From Your
Policy; Charges and Deductions; Separate
Account; The Fixed Account; The Eligible
Portfolios; Transfers, Dollar Cost
Averaging and Account Rebalancing
47 None
48 None
49 None
50 Not Applicable
51 Not Applicable
</TABLE>
4
<PAGE> 6
<TABLE>
<S> <C>
52 Separate Account; The Fixed Account;
The Eligible Portfolios; Transfers;
Your Policy; Dollar Cost Averaging
and Account Rebalancing; Other
Information
53 Federal Tax Considerations
54 Not Applicable
55 Illustrations of Life Insurance Benefits,
Cash Values and Cash Surrender Values
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements
</TABLE>
5
<PAGE> 7
SINGLE PREMIUM VARIABLE LIFE INSURANCE POLICY
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
<TABLE>
<S> <C> <C>
Variable Products Service Center OR Variable Products Service Center
Madison Square Station 51 Madison Avenue
P.O. Box 922 Room 452
New York, New York 10159 New York, New York 10010
Telephone: 1-800-598-2019
</TABLE>
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
This Prospectus describes information you should know before you purchase a
Single Premium Variable Universal Life (SPVUL) policy. We encourage you to read
it carefully.
SPVUL is a modified single premium variable universal life insurance policy.
This means that:
You can make one single premium payment. This Prospectus contains a complete
explanation of when, under certain limited circumstances, you can make
additional premium payments.
Unless you invest only in the Fixed Account, the value of your life insurance
policy will depend upon the performance of the investment options in which you
invest. These investment options can rise or fall in value.
When you purchase an SPVUL policy, you pay an initial single premium. You select
whether you want the initial single premium to be based on 80% or 100% of the
Guideline Single Premium, the maximum amount that the federal tax laws generally
allow you to pay for a life insurance policy with a given face amount. If your
initial single premium is based on 100% of the Guideline Single Premium, a Death
Benefit Guarantee equal to the Policy's Face Amount at issue will apply to your
Policy. If your initial single premium is based on 80% of the Guideline Single
Premium, no Death Benefit Guarantee will apply to your Policy.
You have the option to choose from 22 Investment Divisions and a Fixed Account.
However, at any one time, you can invest in up to 21 investment options,
including the Fixed Account -- an account which is part of our General Account.
The Investment Divisions are part of our Separate Account, a segregated account
that holds SPVUL policy assets apart from our General Account. We use the money
that you have allocated to each Investment Division to invest in shares of an
individual Eligible Portfolio, a mutual fund portfolio. These Eligible
Portfolios are not sold directly to the general public, and their investment
results may differ from mutual fund portfolios sold directly to the general
public. You can also allocate some or all of your payments to the Fixed Account.
The following Eligible Portfolios are available:
ELIGIBLE PORTFOLIOS:
<TABLE>
<S> <C>
-- MainStay VP Capital Appreciation
-- MainStay VP Cash Management
-- MainStay VP Convertible
-- MainStay VP Government
-- MainStay VP High Yield Corporate Bond
-- MainStay VP International Equity
-- MainStay VP Total Return
-- MainStay VP Value
-- MainStay VP Bond
-- MainStay VP Growth Equity
-- MainStay VP Indexed Equity
-- Alger American Small Capitalization
-- Calvert Social Balanced
-- Fidelity VIP II Contrafund(R)
-- Fidelity VIP Equity-Income
-- Janus Aspen Series Balanced
-- Janus Aspen Series Worldwide Growth
-- Morgan Stanley UIF Emerging Markets Equity
-- American Century Income & Growth
-- Dreyfus Large Company Value
-- T. Rowe Price Equity Income
-- Eagle Asset Management Growth Equity
</TABLE>
If you decide to buy this life insurance policy, you should keep this Prospectus
for your records. This Prospectus is not valid unless it is attached to the
current Prospectuses for the MainStay VP Series Fund, Inc., The Alger American
Fund, Calvert Variable Series, Inc., the Fidelity Variable Insurance Products
Fund II, the Fidelity Variable Insurance Products Fund, the Janus Aspen Series,
The Universal Institutional Funds, Inc. and the T. Rowe Price Equity Series,
Inc. (we refer to them collectively as "Funds" and individually as a "Fund").
Although we file the Prospectus with the Securities and Exchange Commission
(SEC), the SEC does not approve or disapprove these securities or determine if
the information in this Prospectus is truthful or complete. It is a criminal
offense to state that the SEC has approved or disapproved these securities or
that it has determined whether the information in this Prospectus is truthful or
complete.
You can call us at 1-800-598-2019 to ask us questions.
We file other information with the SEC. You can read and copy any document we
file at the SEC's public reference room in Washington, DC 20549-6009. You can
call the SEC at 1-800-SEC-0330 for further information. Our SEC filings,
including this Prospectus, are also available to the public at the SEC's website
at (HTTP://WWW.SEC.GOV).
SUBJECT TO COMPLETION, DATED [XXXXXX], 2001
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE. IT MAY ALSO BE CHANGED.
WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE
SEC IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES IN
ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
The date of this Prospectus is [XXXXXX], 2001
<PAGE> 8
This life insurance policy IS NOT:
- a bank deposit or obligation
- federally insured
- endorsed by any bank or governmental agency
- [AVAILABLE FOR SALE IN ALL STATES]
--------------------------------------------------------------------------------
PROSPECTUS DATED: [ ], 2001
New York Life Insurance and Annuity Corporation
--------------------------------------------------------------------------------
2
<PAGE> 9
TABLE OF CONTENTS
<TABLE>
<S> <C>
Glossary of Special Terms.......... 4
Policy Overview.................... 5
Summary of Fees and Charges........ 8
Insurance Charges................ 8
Surrender Charge.............. 8
Monthly Deductions............ 9
Eligible Portfolio Fees and
Expenses...................... 9
Who We Are......................... 11
New York Life Insurance and
Annuity Corporation and New
York Life Insurance Company... 11
Separate Account................. 11
The Eligible Portfolios............ 12
The Fixed Account.................. 13
Assets In The Fixed Account...... 13
Interest Crediting............... 14
Death Benefit Guarantee............ 14
Charges and Deductions............. 15
Expense Allocation............... 15
Charges Under The Policy......... 16
Surrender Charge.............. 16
Monthly Deductions............ 17
Insurance Charges.......... 17
Investment Charges......... 17
Separate Account Charges......... 18
Mortality and Expense Risk
Charge..................... 18
Other Charges You Might
Incur...................... 18
Eligible Portfolio Charges.... 18
Your Policy........................ 19
Policy Limitations............... 19
Changes to Policy or Separate
Account....................... 19
Premiums........................... 20
Transfers, Dollar Cost Averaging,
and Account Rebalancing.......... 22
Transfers of Cash Value.......... 22
Dollar Cost Averaging............ 23
Automatic Asset Reallocation..... 24
Interest Sweep................... 24
Third Party Investment Advisory
Arrangements.................. 25
Life Insurance Benefits and Cash
Values........................... 25
Making Withdrawals From Your
Policy........................... 27
Loans.............................. 29
Lapse and Reinstatement............ 30
Additional Benefits Through Riders
And Options...................... 31
Living Benefits Rider............ 31
Spouse's Paid-up Insurance
Purchase Option Rider......... 31
Federal Tax Considerations......... 32
General.......................... 32
Taxation of NYLIAC and the
Separate Account.............. 32
Income Taxation of Policy
Benefits...................... 32
Modified Endowment Contracts
(MECs)........................ 33
Estate and Generation Skipping
Taxes......................... 33
Diversification Requirements..... 34
Ownership of the Assets in the
Separate Account.............. 34
Tax Deferral During Accumulation
Period........................ 35
Life Insurance Purchased for Use
in Split Dollar
Arrangements.................. 35
Federal Income Tax Withholding... 36
Non-Individual Ownership of
Policies...................... 36
Life Insurance Purchases by Non-
Resident Aliens and Foreign
Corporations.................. 36
Other............................ 36
Legal Proceedings.................. 36
Other Matters...................... 37
Additional Information About
Charges....................... 37
Experts.......................... 37
Directors and Officers of
NYLIAC........................ 38
Distribution of the Policies..... 40
Other Information................ 41
Illustrations of Life Insurance
Benefits, Cash Values and Cash
Surrender Values.............. 42
</TABLE>
3
<PAGE> 10
GLOSSARY OF SPECIAL TERMS
As used in this Prospectus, the following terms have the indicated meanings:
ACCUMULATION UNIT: A unit of measure we use to calculate the value of an
Investment Division.
BUSINESS DAY: Generally, any day on which NYLIAC is open and the New York Stock
Exchange is open for trading. Our Business Day ends at 4:00 p.m. Eastern Time or
the closing of regular trading on the New York Stock Exchange, if earlier.
CASH SURRENDER VALUE: The Cash Value minus the Surrender Charge (if
applicable), loan principal (if applicable) and loan interest accrued (if
applicable).
CASH VALUE: The current value of the Investment Divisions plus the value of the
Fixed Account under the Policy.
CODE: The Internal Revenue Code of 1986, as amended.
DEATH BENEFIT GUARANTEE: Prevents the Policy from lapsing if the Policy's Cash
Surrender Value is insufficient to cover Monthly Deductions. Only available if
100% Guideline Single Premium is selected at the time of Application and an
amount based on 100% of the Guideline Single Premium is paid as the initial
premium.
DEDUCTION AMOUNT: A charge on the Policy Date and on Monthly Deduction Dates
for the cost of insurance, deferred sales expense charge and an administrative
charge.
FACE AMOUNT: On the Policy Date, the Face Amount is the amount shown on the
Policy's Data page. Thereafter, the Face Amount may be reduced as a result of
any partial withdrawal.
FIXED ACCOUNT: The Fixed Account is supported by the assets in NYLIAC's General
Account. The amount in the Fixed Account earns interest on a daily basis.
Interest is credited on each Monthly Deduction Day.
GAIN: Cash Value minus total premiums paid.
GENERAL ACCOUNT: An account representing all of NYLIAC's assets, liabilities,
capital and surplus, income, gains or losses that are not included in the
Separate Account or any other separate account of NYLIAC. We allocate the
premium payment you make during the free look period to this account.
GUIDELINE SINGLE PREMIUM (GSP): The maximum amount of initial single premium
that can be paid for a specific Face Amount and allow the Policy to qualify as
life insurance for tax purposes under Section 7702 of the Code.
GUIDELINE ANNUAL PREMIUM (GAP): The maximum amount of premium that can be paid
annually for a specific Face Amount and allow the Policy to qualify as life
insurance for tax purposes under Section 7702 of the Code.
INSURED: The person on whose life the Policy is issued.
INVESTMENT DIVISION: A division of the Separate Account which invests
exclusively in shares of a specified Eligible Portfolio.
INVESTMENT DIVISION VALUE: The current value of the Investment Division.
ISSUE AGE: As of the Policy Date, the Insured's age on the Insured's nearest
birthday.
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<PAGE> 11
ISSUE DATE: The date your Policy is issued.
LIFE INSURANCE BENEFIT: The greater of (1) the Face Amount specified in the
Policy or (2) the Cash Value on the date of death multiplied by a stated
percentage as specified in the Policy. Also called DEATH BENEFIT.
LIFE INSURANCE BENEFIT PROCEEDS: The amount that we will pay on the death of
the Insured. It equals the Life Insurance Benefit minus the amount of any
outstanding loans, including accrued interest and any past due Monthly
Deductions.
MATURITY: The Policy Anniversary at which the Insured is age 100.
MONTHLY DEDUCTIONS: The charges associated with the Policy that are deducted on
a monthly basis which include a cost of insurance charge, a Deferred Sales
Expense Charge, and a Monthly Administrative Charge.
MONTHLY DEDUCTION DAY: The day of each month on which any Monthly Deductions
are subtracted from the Cash Value. Monthly Deduction Days occur on the same day
of the month as the Policy Anniversary.
NET AMOUNT AT RISK: The Life Insurance Benefit minus the Cash Value.
NYLIAC, WE OR US: New York Life Insurance and Annuity Corporation.
POLICY ANNIVERSARY: The yearly anniversary of the Policy Date.
POLICY DATE: The effective date of the Policy.
POLICY LOAN RATE: The interest rate charged on Policy loans.
POLICY OWNER OR YOU: The owner of the Policy.
POLICY YEAR: The twelve months between Policy Anniversaries.
SEPARATE ACCOUNT: NYLIAC Variable Universal Life (VUL) Separate Account-I, a
segregated asset account NYLIAC established to receive and invest premiums
allocated to the Eligible Portfolios.
SURRENDER CHARGE: A charge which may be assessed upon surrender of the Policy
or partial withdrawals in excess of the Surrender Charge Free Window.
SURRENDER CHARGE FREE WINDOW: The amount of a surrender or partial withdrawal
that is not subject to the Surrender Charge. In any Policy Year this amount is
the greater of 10% of the total premiums paid or 100% of your policy's Gain.
VALUATION DAY. The date on which the Investment Divisions are valued. The
Valuation Day is every day the New York Stock Exchange is open for trading. The
value of the Separate Account is determined at the close of the New York Stock
Exchange (generally 4:00 p.m. Eastern Time) on such days.
VALUATION PERIOD: The period between the close of business on successive
Valuation Days.
POLICY OVERVIEW
This Prospectus describes our SPVUL policy (Policy). This overview is
intended to explain key features of the Policy to you. It is not intended to
provide a complete
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<PAGE> 12
explanation of all aspects of the Policy. The Policy is not intended to be used
as a short-term savings vehicle or to permit frequent investments and
withdrawals.
The Policy must comply with certain requirements imposed by the Internal
Revenue Code of 1986 (Code) in order to maintain its tax status. This is why we
do not accept initial premiums over and above the Guideline Single Premium
(GSP) -- the maximum amount the Code allows you to pay at issue for a Policy
with a given Face Amount. The Code also requires that the Life Insurance Benefit
exceed the value that you have accumulated under the Policy by a specified
percentage, again depending upon the age of the Insured. Therefore, if the
investment options that you have chosen under the Policy perform well, we may
need to increase the amount of your Life Insurance Benefit above the Policy's
then current Face Amount.
When you purchase a Policy, you pay an initial single premium. You decide
whether the single premium will be based on 100% of the GSP or 80% of the GSP
applicable to your specific Policy coverage. If you decide that the single
premium will be based on 100% of GSP, we will guarantee the life insurance
benefit under the Policy in an amount equal to the initial Face Amount based on
age, gender and underwriting class. We call this the Death Benefit Guarantee.
The Guarantee protects the Policy from lapsing if your Cash Surrender Value is
insufficient to cover the monthly deductions. If your single premium is based on
80% of the GSP, your Face Amount will be higher than if your single premium is
based on 100% of the GSP, and you have more flexibility to pay subsequent
premiums, but we will not provide a Death Benefit Guarantee. For a limited time,
usually within 20 days after you receive your Policy, you can cancel the policy
without paying a surrender charge. For policies issued in North Carolina and the
District of Columbia, you can cancel your Policy without paying a surrender
charge up to the later of 20 days after you receive your Policy or 45 days after
you sign your application. In New York, you can cancel your Policy without
paying a surrender charge up to 10 days after you receive your Policy.
There are 23 investment options available under the Policy, including the
Fixed Account. You can invest in up to 21. Each Investment Division invests in
shares of an individual Eligible Portfolio. The Eligible Portfolios have
different investment objectives, strategies and techniques. If the Investment
Divisions perform well, you may be able to accumulate value in amounts greater
than what you can accumulate in the Fixed Account. However, investments in the
Investment Divisions also can lose value. If your Policy does not have a Death
Benefit Guarantee, your Policy may lapse as a result of poor investment
performance of the Investment Divisions in which you have invested. If your
Policy has a Death Benefit Guarantee, your Policy will not lapse due to the
investment performance of the Investment Divisions in which you have invested.
By contrast, if the Investment Divisions in which you have invested perform
well, the Life Insurance Benefit may increase above the Face Amount.
We deduct charges from your Policy. In addition, each Eligible Portfolio
deducts its own charges, which we do not set under your Policy. We deduct
charges on a monthly basis (Monthly Deductions), some over the life of your
Policy until Maturity. These charges include a cost of insurance charge, which
pays for your insurance benefit, and a monthly administrative charge, which
compensates us for the cost of administering your
6
<PAGE> 13
Policy. The deferred sales expense charge is a Monthly Deduction we deduct over
a 10-year period after a premium payment is made. We also deduct a charge on a
daily basis from assets held in the Investment Division, to compensate us for
the risk that Insureds will not live as long as we expected and that our
expenses in administering the policy will be higher than we anticipated. We
deduct a surrender charge if you make a partial withdrawal in excess of the
surrender charge free window amount or surrender your Policy in the first nine
years after you purchase your Policy.
You can access your Cash Surrender Value in several ways. You can surrender
your Policy, take a partial withdrawal or borrow against your Policy. You should
be aware that there may be adverse tax consequences when you access your Cash
Surrender Value. Surrenders, partial withdrawals and loans will generally be
taxed to the extent of any Gain (generally Cash Value less premium payments).
You may also be required to pay a 10% tax penalty on distributions.
If you surrender your Policy or take a partial withdrawal from your Policy
in excess of the Surrender Charge Free window within the first nine years after
you pay the initial single premium, we will assess a Surrender Charge. The
Surrender Charge is assessed as a percentage of the lesser of: (i) the Cash
Value minus any Surrender Charge Free Window; or (ii) the initial single premium
minus any partial withdrawals for which the Surrender Charge was assessed.
Surrenders and partial withdrawals made shortly after the payment of the initial
single premium are assessed a higher Surrender Charge percentage than surrenders
and partial withdrawals for the same dollar amount made after a longer period
has elapsed after the payment of the initial single premium. Partial withdrawals
can also reduce the Policy's Face Amount and Death Benefit Guarantee.
If you borrow against your Policy, we require that the Fixed Account
contain an amount equal to 106% of the loan requested plus 106% of any previous
loans. If the Fixed Account does not contain a sufficient amount when the loan
is requested, we will transfer a sufficient amount FROM the Investment Divisions
TO the Fixed Account. Transfers are made on a pro-rata basis from the Investment
Divisions. While there is an outstanding loan, we do not permit partial
withdrawals or transfers that would reduce the amount contained in the Fixed
Account below 106% of the total outstanding loan. Loan interest accrues each day
and is payable on the Policy Anniversary, on the date of death, surrender,
lapse, on the date of a new loan, loan increase, or loan repayment. If you do
not repay loan interest in cash (by 31 days following the Policy Anniversary),
it will be capitalized and increase the loan principal. If your Policy has a
Death Benefit Guarantee, you should be aware that if, at any time, the total
loan principal (including capitalized interest) exceeds 50% of the Cash Value,
then the Death Benefit Guarantee will terminate. You cannot reinstate the Death
Benefit Guarantee by repaying the loan or by reducing the total loan principal
below 50% of the Cash Value.
You can make transfers between the Investment Divisions, and between the
Investment Divisions and the Fixed Account. We reserve the right to charge up to
$30 for each transfer in excess of 12 in any given year. The maximum amount you
can transfer from the Fixed Account to the Investment Divisions during any
Policy Year is the greater of (i) 20% of the amount in the Fixed Account at the
beginning of the Policy Year or (ii) $5,000. There is no limit to the amount
that you may transfer into the Fixed Account, unless we are crediting interest
to the Fixed Account at the minimum interest crediting rate of 3%. In that case,
we limit transfers to the greater of: (i) 20% of the
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<PAGE> 14
total amount on the Investment Divisions at the beginning of the Policy Year; or
(ii) $5,000. If the Insured is age 65 or older, this limitation on transfers to
the Fixed Account does not apply.
You can also take advantage of our Dollar Cost Averaging, Automatic Asset
Reallocation, and Interest Sweep programs. Dollar Cost Averaging permits you to
automatically transfer assets from any Investment Division to any other
Investment Division or to the Fixed Account as you direct. Dollar Cost Averaging
transfers cannot be made from the Fixed Account. Automatic Asset Reallocation
permits you to automatically reallocate assets among the Investment Divisions to
maintain a proportion that you predetermine. Interest Sweep permits you to
transfer interest earned in the Fixed Account to Investment Division(s) as you
indicate. Dollar Cost Averaging and Automatic Asset Reallocation are available
if your Cash Value is $2,500 or more. Thereafter, you must maintain a Cash Value
of at least $2,000 to have subsequent reallocations. You cannot choose Dollar
Cost Averaging and Automatic Asset Reallocation simultaneously. Interest Sweep
is available if your Cash Value contained in the Fixed Account is $2,500 or
more. Thereafter, the Fixed Account must contain at least $2,000 to have
subsequent transfers.
The Life Insurance Benefit is payable upon the death of the Insured. The
Life Insurance Benefit payable is reduced by any outstanding loan principal and
accrued interest as of the date of death, and any past due Monthly Deductions.
SUMMARY OF FEES AND CHARGES
INSURANCE CHARGES
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the Policy. The first table describes the
charges that you will pay when you:
(i) surrender the Policy, or
(ii) make a partial withdrawal in excess of the Surrender Charge Free
Window.
SURRENDER CHARGE
<TABLE>
<CAPTION>
SURRENDER CHARGE
(AS PERCENTAGE OF
POLICY CASH VALUE LESS SURRENDER
AGE CHARGE FREE WINDOW)*
------ -------------------------
<S> <C>
1 or fewer years............................... 9%
2.............................................. 8%
3.............................................. 7%
4.............................................. 6%
5.............................................. 5%
6.............................................. 4%
7.............................................. 3%
8.............................................. 2%
9.............................................. 1%
More than 9.................................... 0%
</TABLE>
---------------
* The Maximum Surrender Charge will never exceed the applicable Surrender Charge
Percentage applied to the initial single premium less any partial withdrawals
for which the Surrender Charge was previously assessed.
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<PAGE> 15
The next table describes the Monthly Deductions:
MONTHLY DEDUCTIONS
<TABLE>
<S> <C> <C> <C>
CHARGE AMOUNT DEDUCTED DEDUCTED ON MONTHLY
(AS ANNUAL PERCENTAGE OF CASH VALUE) DEDUCTION DAY FOR
Cost of Insurance Individualized, depending upon age, Life of Policy until Maturity
gender, Net Amount at Risk,
underwriting risk class, and other
individual factors
------------------------------------------------------------------------------------------------------------------
Deferred Sales Expense: CURRENT GUARANTEED 10 year period after a premium
comprised of: payment is applied
Sales Expense Charge 0.40%
Premium Tax 0.30% *
Federal Tax (DAC) 0.20% *
Total Deferred Sales Expense 0.90% 1.00%
* Taxes change as tax laws change.
------------------------------------------------------------------------------------------------------------------
Monthly Administrative Charge Life of Policy until Maturity
Policy Years: 1-3 0.60% 0.70%
4 and after:
If Cash Value is:
Below $30,000 0.60% .70%
$ 30,000 -- $59,999.99 0.55% .70%
$ 60,000 -- $89,999.99 0.50% .70%
$ 90,000 -- $119,999.99 0.40% .70%
$120,000 -- $149,999.99 0.30% .70%
$150,000 -- $179,999.99 0.20% .70%
$180,000 -- $199,999.99 0.10% .70%
$200,000 or greater 0% .70%
</TABLE>
SEPARATE ACCOUNT CHARGES
<TABLE>
<S> <C> <C> <C>
CHARGE AMOUNT DEDUCTED DEDUCTED DAILY FOR
(AS ANNUAL PERCENTAGE OF
SEPARATE ACCOUNT ASSETS)
Mortality and Expense Risk CURRENT GUARANTEED Life of Policy
0.50% 0.80%
</TABLE>
ELIGIBLE PORTFOLIO FEES AND EXPENSES
The next table describes the Eligible Portfolio fees and expenses that you
will pay periodically during the time that you own the Policy. You can find a
more detailed description about each Eligible Portfolio's fees and expenses in
the prospectus for each Fund. Unlike the other charges listed above, the fees
and expenses of the Eligible Portfolios are not fixed or specified under the
terms of your Policy, and they may vary from year to year. The following chart
reflects 1999 fees and charges that are provided by the Funds or their agents,
which are based on 1999 expenses. The Funds have provided us with this
information; we have not independently verified it.
9
<PAGE> 16
ANNUAL OPERATING EXPENSES
AS OF THE ELIGIBLE PORTFOLIO'S YEAR END
(As a percentage of net assets)
<TABLE>
<CAPTION>
MAINSTAY VP MAINSTAY
MAINSTAY VP MAINSTAY VP HIGH YIELD VP MAINSTAY VP
CAPITAL CASH MAINSTAY VP MAINSTAY VP CORPORATE INTERNATIONAL TOTAL
APPRECIATION MANAGEMENT CONVERTIBLE GOVERNMENT BOND EQUITY RETURN
------------ ----------- ----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
FUND ANNUAL
EXPENSES AFTER
REIMBURSEMENT
(as a % of average net
assets for the fiscal
year ended December 31,
1999)
Advisory Fees............ 0.36% 0.25% 0.36% 0.30% 0.30% 0.60% 0.32%
Administration Fees...... 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Other Expenses........... 0.06% 0.06% 0.15% 0.09% 0.07% 0.27% 0.06%
Total Fund Annual
Expenses............... 0.62% 0.51% 0.71% 0.59% 0.57% 1.07% 0.58%
<CAPTION>
MAINSTAY VP MAINSTAY VP
MAINSTAY VP MAINSTAY VP GROWTH INDEXED
VALUE BOND EQUITY EQUITY
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
FUND ANNUAL
EXPENSES AFTER
REIMBURSEMENT
(as a % of average net
assets for the fiscal
year ended December 31,
1999)
Advisory Fees............ 0.36% 0.25% 0.25% 0.10%
Administration Fees...... 0.20% 0.20% 0.20% 0.20%
Other Expenses........... 0.07% 0.05% 0.04% 0.06%
Total Fund Annual
Expenses............... 0.63% 0.50% 0.49% 0.36%
</TABLE>
<TABLE>
<CAPTION>
MAINSTAY VP MAINSTAY VP MAINSTAY VP
AMERICAN DREYFUS EAGLE ASSET ALGER FIDELITY
CENTURY LARGE MANAGEMENT AMERICAN CALVERT FIDELITY VIP VIP
INCOME & COMPANY GROWTH SMALL SOCIAL II EQUITY
GROWTH VALUE EQUITY CAPITALIZATION BALANCED CONTRAFUND(R) INCOME
----------- ----------- ----------- -------------- -------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
FUND ANNUAL
EXPENSES AFTER
REIMBURSEMENT
(as a % of average net
assets for the fiscal year
ended December 31, 1999)
Advisory Fees............... 0.50% 0.60% 0.50% 0.85% 0.70% 0.58% 0.48%
Administration Fees......... 0.20% 0.20% 0.20% 0.00% 0.00% 0.00% 0.00%
Other Expenses.............. 0.15%(a) 0.15%(a) 0.15%(a) 0.05% 0.19%(b) 0.09% 0.09%
Total Fund Annual
Expenses.................. 0.85% 0.95% 0.85% 0.90% 0.89%(b) 0.67%(c) 0.56%(c)
<CAPTION>
MORGAN
JANUS ASPEN STANLEY UIF
JANUS ASPEN SERIES EMERGING T. ROWE
SERIES WORLDWIDE MARKETS PRICE EQUITY
BALANCED GROWTH EQUITY INCOME
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
FUND ANNUAL
EXPENSES AFTER
REIMBURSEMENT
(as a % of average net
assets for the fiscal year
ended December 31, 1999)
Advisory Fees............... 0.65% 0.65% 0.42% 0.85%(f)
Administration Fees......... 0.00% 0.00% 0.25% 0.00%
Other Expenses.............. 0.02% 0.05% 1.12% 0.00%
Total Fund Annual
Expenses.................. 0.67%(d) 0.70%(d) 1.79%(e) 0.85%(f)
</TABLE>
------------
(a) "Other Expenses" and "Total Fund Annual Expenses" for the MainStay VP
American Century Income & Growth, MainStay VP Dreyfus Large Company Value
and MainStay VP Eagle Asset Management Growth Equity Portfolios reflect an
expense reimbursement agreement that ended December 31, 1999 limiting
"Other Expenses" to 0.15% annually. In the absence of the expense
reimbursement arrangement, the "Total Fund Annual Expenses" would have been
0.92%, 1.00% and 0.87% for the MainStay VP American Century Income &
Growth, MainStay VP Dreyfus Large Company Value and MainStay VP Eagle Asset
Management Growth Equity Portfolios, respectively.
(b) "Other Expenses" reflect an indirect fee. Net fund operating expenses after
reductions for fees paid indirectly, would be 0.86%.
(c) Through arrangements with certain funds or Fidelity Management & Research
Company on behalf of certain funds' custodian, credits realized as a result
of uninvested cash balances were used to reduce a portion of each
applicable fund's expenses. Including these reductions, total expenses
presented in the table would have been 0.67% for the Fidelity VIP II
Contrafund Portfolio and 0.57% for the Fidelity VIP Equity-Income
Portfolio.
(d) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Janus Aspen
Series Worldwide Growth and Balanced Portfolios. All expenses are shown
before the effect of any expense offset arrangements.
(e) Morgan Stanley Asset Management has voluntarily waived receipt of its
"Advisory Fees" and agreed to reimburse the Portfolio; if necessary, to the
extent that the "Total Fund Annual Expenses" of the Portfolio exceed 1.75%
of average daily net assets. However, Morgan Stanley has reflected under
"Other expenses" the Portfolio's interest and foreign tax expenses incurred
in 1999 which were equal to 0.04% of the Portfolio's average daily net
assets. The fee waivers and reimbursements described above may be
terminated by Morgan Stanley at any time without notice. Absent such
reductions, it is estimated that "Advisory Fees", "Administration Fees" and
"Total Fund Annual Expenses" would be 1.25%, 0.25% and 2.62%, respectively.
(e) Management fees include operating expenses.
10
<PAGE> 17
WHO WE ARE
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
AND NEW YORK LIFE INSURANCE COMPANY
We are New York Life Insurance and Annuity Corporation (NYLIAC), a stock
life insurance company incorporated in Delaware in 1980. We are licensed to sell
life, accident and health insurance and annuities in the District of Columbia
and all states. In addition to the policies described in this Prospectus, we
offer other life insurance policies and annuities. You can find our financial
statements in this Prospectus.
We are a wholly-owned subsidiary of New York Life Insurance Company (New
York Life), a mutual life insurance company founded in New York in 1845. At the
end of 1999, we held assets of $29.669 billion. New York Life has invested in
us, and may, in order to maintain capital and surplus in accordance with state
requirements, occasionally make additional contributions to NYLIAC.
SEPARATE ACCOUNT
The Investment Divisions are subdivisions of our Separate Account, NYLIAC
Variable Universal Life Separate Account-I. The Separate Account is a segregated
asset account we created to receive and invest your premiums.
We established the Separate Account on June 4, 1993 under Delaware law. The
Separate Account is registered as a unit investment trust with the SEC under the
Investment Company Act of 1940 (1940 Act). This registration does not mean that
the SEC supervises the management or the investment practices or policies of the
Separate Account.
Although the assets of the Separate Account belong to us, we hold these
assets separately from our other assets. Under applicable insurance law,
Separate Account assets cannot be charged for liabilities incurred in any of our
other business operations (except to the extent that assets in the Separate
Account exceed the reserves and other liabilities of the Separate Account).
These assets are not subject to the claims of our general creditors. The income,
capital gains and capital losses incurred on the assets of the Separate Account
are credited to or are charged against the assets of the Separate Account,
without regard to the income, capital gains or capital losses arising out of any
other business we may conduct. Therefore, the investment performance of the
Separate Account is entirely independent of both the investment performance of
the Fixed Account and the performance of any other separate account.
The Separate Account currently consists of twenty-two Investment Divisions.
We may add more Investment Divisions in the future.
The Investment Divisions invest exclusively in the corresponding Eligible
Portfolios of the Funds. The income, capital gains, and capital losses
attributable to the assets of an Investment Division are credited to or are
charged against the assets of the Investment Division, without regard to the
income, capital gains or capital losses of any other Investment Division. The
Investment Divisions of the Separate Account are designed to provide money to
pay benefits under your Policy, but they do not guarantee a minimum rate of
return or protect against asset depreciation. They will fluctuate up and down
depending on performance of the Eligible Portfolios.
11
<PAGE> 18
THE ELIGIBLE PORTFOLIOS
The Eligible Portfolios of each Fund, along with their investment
objectives, are listed in the following table. The Funds' prospectuses contain
more information about each Eligible Portfolio, including its portfolio manager.
<TABLE>
<S> <C> <C>
------------------------------------------------------------------------------------------------------------------
FUND ELIGIBLE PORTFOLIOS INVESTMENT OBJECTIVES
------------------------------------------------------------------------------------------------------------------
MainStay VP Series Fund, Inc. MainStay VP Capital Appreciation long-term growth of capital
------------------------------------------------------------------------------------------------------------------
MainStay VP Cash Management as high a level of current income as is
considered consistent with the
preservation of capital and liquidity
------------------------------------------------------------------------------------------------------------------
MainStay VP Convertible capital appreciation together with
current income
------------------------------------------------------------------------------------------------------------------
MainStay VP Government a high level of current income,
consistent with safety of principal
------------------------------------------------------------------------------------------------------------------
MainStay VP High Yield Corporate maximum current income through investment
Bond in a diversified portfolio of high yield,
high risk debt securities
------------------------------------------------------------------------------------------------------------------
MainStay VP International Equity long-term growth of capital by investing
in a portfolio consisting primarily of
non-U.S. equity securities
------------------------------------------------------------------------------------------------------------------
MainStay VP Total Return current income consistent with reasonable
opportunity for future growth of capital
and income
------------------------------------------------------------------------------------------------------------------
MainStay VP Value maximum long-term total return from a
combination of capital growth and income
------------------------------------------------------------------------------------------------------------------
MainStay VP Bond highest income over the long term
consistent with preservation of principal
------------------------------------------------------------------------------------------------------------------
MainStay VP Growth Equity long-term growth of capital, with income
as a secondary consideration
------------------------------------------------------------------------------------------------------------------
MainStay VP Indexed Equity investment results that correspond to the
total return performance (and reflect
reinvestment of dividends) of publicly
traded common stocks represented by the
S&P 500(R) Index
------------------------------------------------------------------------------------------------------------------
MainStay VP American Century dividend growth, current income and
Income & Growth capital appreciation
------------------------------------------------------------------------------------------------------------------
MainStay VP Dreyfus Large Company capital appreciation
Value
------------------------------------------------------------------------------------------------------------------
MainStay VP Eagle Asset growth through long-term capital
Management Growth Equity appreciation
------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 19
<TABLE>
<S> <C> <C>
------------------------------------------------------------------------------------------------------------------
FUND ELIGIBLE PORTFOLIOS INVESTMENT OBJECTIVES
------------------------------------------------------------------------------------------------------------------
The Alger American Fund Alger American Small long-term capital appreciation
Capitalization
------------------------------------------------------------------------------------------------------------------
Calvert Variable Series, Inc. Calvert Social Balanced competitive total return through an
actively managed portfolio which offers
income and capital growth opportunity and
which satisfies investment and social
criteria
------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Fidelity VIP II Contrafund(R) long-term capital appreciation
Products Fund II
------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Fidelity VIP Equity-Income reasonable income by investing in
Products Fund income-producing equity securities
------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Janus Aspen Series Balanced long-term capital growth, consistent with
preservation of capital and balanced by
current income
------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Worldwide long-term growth of capital consistent
Growth with the preservation of capital by
investing in a diversified portfolio of
common stocks of foreign and domestic
issuers
------------------------------------------------------------------------------------------------------------------
The Universal Institutional Morgan Stanley UIF Emerging long-term capital appreciation by
Funds, Inc. Markets Equity investing primarily in equity securities
of issuers in emerging market countries
------------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. T. Rowe Price Equity Income substantial dividend income as well as
long-term growth of capital through
investments in the common stocks of
established companies, paying above
average dividends
------------------------------------------------------------------------------------------------------------------
</TABLE>
"Standard & Poor's," "S&P," "S&P 500(R)" "Standard & Poor's 500," and "500"
are trademarks of The McGraw-Hill Companies, Inc, and have been licensed for use
by NYLIAC. The Index Fund is not sponsored, endorsed, sold or promoted by
Standard & Poor's and Standard & Poor's makes no representation regarding the
advisability of investing in the MainStay VP Indexed Series Fund.
THE FIXED ACCOUNT
ASSETS IN THE FIXED ACCOUNT
The Fixed Account is supported by the assets in our General Account, which
includes all of our assets except those assets specifically allocated to
separate accounts. These assets are subject to the claims of our general
creditors. We may invest the assets of the Fixed Account however we choose,
within limits. Your interest in the Fixed Account is not registered under the
Securities Act of 1933, and the Fixed Account is not registered as an investment
company under the 1940 Act. Therefore, the Fixed Account and any interest earned
in the Fixed Account are generally not subject to these statutes. The staff of
the SEC has not reviewed the disclosures in this Prospectus relating to the
Fixed Account. These disclosures regarding the Fixed Account may,
13
<PAGE> 20
however, be subject to certain applicable provisions of the federal securities
laws relating to the accuracy and completeness of statements made in
prospectuses.
INTEREST CREDITING
We will credit any amounts in the Fixed Account with a fixed interest rate
which we declare periodically in advance, at our sole discretion. This rate will
never be less than an annual rate of 3%. We may credit different interest rates
to loaned and unloaned amounts in the Fixed Account. All premiums applied to,
and amounts transferred to, the Fixed Account receive the loaned amount rate or
the unloaned amount rate in effect at that time. Interest accrues daily and is
credited on each Monthly Deduction Day.
DEATH BENEFIT GUARANTEE
A Death Benefit Guarantee is provided automatically if you select an
initial single premium based on 100% of the GSP for the policy. It is not
available to Policy Owners who select an initial single premium based on 80% of
the GSP. At issue, the amount of the Death Benefit Guarantee equals the Face
Amount. The Death Benefit Guarantee prevents the Policy from lapsing if the
Policy's Cash Surrender Value is insufficient to cover the Monthly Deductions.
If the Insured dies after the Death Benefit Guarantee has been invoked, the
proceeds paid will equal the amount of the Death Benefit Guarantee. A partial
withdrawal may reduce the amount of the Death Benefit Guarantee.
The new Death Benefit Guarantee after a partial withdrawal is the lowest of
the following:
1. the Attained Age Face Amount (the face amount that the cash value
after the withdrawal would purchase as a new 100% GSP policy at the
insured's current attained age);
2. the Policy's Face Amount (which may have been reduced due to the
partial withdrawal);
3. the current Death Benefit Guarantee in effect before the partial
withdrawal.
EXAMPLE OF CHANGE IN DEATH BENEFIT GUARANTEE DUE TO PARTIAL WITHDRAWAL:
The owner of a Policy with a $58,068 Face Amount takes a partial withdrawal
of $1,000 in the 2nd year.
Issue Age of 35
Initial Single Premium at Issue = $10,000
Death Benefit Guarantee at Issue = $58,068 Face Amount
Cash Value before withdrawal = $11,025
Cash Value after withdrawal = $10,000
14
<PAGE> 21
Determination of new Death Benefit Guarantee is the lowest of the following
3 calculations:
1. CALCULATE THE ATTAINED AGE FACE AMOUNT:
$10,000/0.1797 = $55,648 (Where "0.1797" is the approximate GSP per
dollar at age 36)
2. THE POLICY'S REDUCED FACE AMOUNT:
The Face Amount at issue minus the $1,000 withdrawal.
Reduced Face Amount is $58,068 - $1,000 = $57,068
3. THE DEATH BENEFIT GUARANTEE IN EFFECT BEFORE THE PARTIAL WITHDRAWAL:
$58,068
The Death Benefit Guarantee Amount is now reduced to $55,648.
Any time the amount of the Death Benefit Guarantee is reduced, that amount
becomes the new Death Benefit Guarantee amount. The amount of the Death Benefit
Guarantee will never increase.
If, at any time, the loan principal including capitalized interest, exceeds
50% of the Cash Value, the Death Benefit Guarantee will terminate.
CHARGES AND DEDUCTIONS
The deductions or charges associated with this Policy are subtracted,
depending on the type of deduction or charge, on a monthly basis, on a daily
basis, or when you surrender or make a partial withdrawal from the Policy. We
call each date on which a Monthly Deduction is made a Monthly Deduction Day and
the amount we deduct a Monthly Deduction a Deduction Amount.
Deduction Amounts are subtracted on the Policy Date and on each Monthly
Deduction Day after the Policy Date to cover charges and expenses incurred in
connection with a Policy.
EXPENSE ALLOCATION
If you do not provide us with instructions on how you would like your
expenses allocated, each Deduction Amount will be subtracted pro rata from each
Investment Division so that the proportion of Cash Value attributable to each
Investment Division remains the same before and after the deduction.
You can instruct us to deduct Monthly Deductions from the Cash Value first
from the MainStay VP Cash Management Investment Division and/or the Fixed
Account. If the value in the MainStay VP Cash Management Investment Division
and/or Fixed Account you have chosen is insufficient to pay these charges, we
will deduct as much of the charges as possible from these investment options. We
will deduct the remainder from the amounts in all of the Investment Divisions
and the amount not held as collateral for a loan in the Fixed Account in
proportion to the amounts in these investment options.
The Deduction Amount will vary from month to month. If the Cash Surrender
Value (i.e., the Cash Value minus any applicable Surrender Charge, any
outstanding loan
15
<PAGE> 22
principal and any outstanding loan interest) is not sufficient to cover a
Deduction Amount due on any Monthly Deduction Day, the Policy may lapse. See
"Lapse and Reinstatement". If you have a Death Benefit Guarantee, the Policy
will not lapse even if the Cash Surrender Value is not sufficient to cover a
Deduction Amount due.
The deductions and charges associated with your Policy are listed below.
CHARGES UNDER THE POLICY
We deduct certain charges to compensate us for providing the insurance
benefits under the Policy, for administering the Policy, for assuming certain
risks, and for incurring certain expenses in distributing the Policy.
SURRENDER CHARGE
The Surrender Charge is equal to a percentage of the lesser of:
-- the Cash Value minus any Surrender Charge Free Window; or
-- the initial single premium less any partial withdrawals for which the
Surrender Charge was assessed.
The percentage applicable is based on the amount of time that has passed from
the date when the initial single premium was accepted to the effective date of
the surrender or partial withdrawal. The Surrender Charge percentage declines
each Policy Year, from 9% in the first Policy Year to 0% in years 10 and after.
The Surrender Charge Free Window in any Policy Year is the greater of:
-- 10% of the total premiums paid; or
-- 100% of the policy's Gain.
EXAMPLE OF SURRENDER CHARGE CALCULATION
BASED ON INITIAL SINGLE PREMIUM AND AFTER PARTIAL WITHDRAWAL TAKEN THAT
EXCEEDS THE SURRENDER CHARGE FREE WINDOW.
Total Premiums Paid = $50,000 Cash Value = $75,000 Policy Year: 1
Partial Withdrawal of $28,000 taken in 1st policy year
Surrender Charge Free Window in effect before Partial Withdrawal was taken:
The greater of:
10% of Total Premiums Paid = $5,000
or
100% of Gain = $25,000
Surrender Charge Free Window in effect when Partial Withdrawal was taken =
$25,000
16
<PAGE> 23
Partial Withdrawal subject to Surrender Charge:
$28,000 minus $25,000 = $3,000
Surrender Charge on the Partial Withdrawal:
$3,000 x 9% = $270
MONTHLY DEDUCTIONS
On each Monthly Deduction Day, we first deduct the Cost of Insurance from
the Cash Value. We then deduct the Deferred Sales Expense Charge and the Monthly
Administrative Charge.
INSURANCE CHARGES
COST OF INSURANCE CHARGE
We will deduct from your Cash Value a charge for the cost of insurance
protection on each Monthly Deduction Day. The charge is based on such factors as
the gender, attained age and underwriting class of the Insured, the Net Amount
at Risk and the Cash Value. The charge varies monthly and it is determined by
multiplying the applicable cost of insurance rate by our Net Amount at Risk each
Policy month. Any change in the cost of insurance rates will be in accordance
with the procedures and standards on file with all appropriate officials,
including the Superintendent of Insurance of the State of New York. The monthly
cost of insurance rates will be reviewed whenever the rates for new issues on
the same policy form or in the same policy series change, but in any event, at
least once every five years, and not more frequently than annually. The cost of
insurance rates will never exceed the guaranteed rates shown in the Policy.
INVESTMENT CHARGES
DEFERRED SALES EXPENSE CHARGE
We will deduct a Deferred Sales Expense Charge from the Cash Value on each
Monthly Deduction Date following each premium payment over a ten-year period. If
you make more than one premium payment, the amount is deducted from the pro rata
share of Cash Value attributable to that Premium Payment. This charge is
comprised of:
<TABLE>
<CAPTION>
GUARANTEED
CURRENT MAXIMUM
---------------- ----------------
<S> <C> <C>
-- Sales Expense Charge 0.40%
-- Premium Tax 0.30% *
-- Federal Tax (DAC) 0.20% *
TOTAL DEFERRED SALES EXPENSE 0.90% ANNUALLY 1.00% ANNUALLY
*Change as tax laws change
</TABLE>
MONTHLY ADMINISTRATIVE CHARGE
In the first three Policy Years, there is a charge currently equal to 0.60%
(0.70% guaranteed) of your Cash Value on an annual basis. This charge
compensates us for costs we incur in providing certain administrative services
including recordkeeping, processing claims and communicating with Policy owners.
In Policy Years 4 and subsequent, we will waive the Monthly Administrative
Charge if your Cash Value equals
17
<PAGE> 24
or exceeds $200,000. If not, your Monthly Administrative Charge will be
calculated as follows:
<TABLE>
<CAPTION>
CHARGE
(AS ANNUAL PERCENTAGE
CASH VALUE OF CASH VALUE)
---------- ---------------------
<S> <C>
Below $30,000 0.60%
Equal to or greater than $30,000 but below $60,000 0.55%
Equal to or greater than $60,000 but below $90,000 0.50%
Equal to or greater than $90,000 but below $120,000 0.40%
Equal to or greater than $120,000 but below $150,000 0.30%
Equal to or greater than $150,000 but below $180,000 0.20%
Equal to or greater than $180,000 but below $200,000 0.10%
Equal to or greater than $200,000 Zero - no charge
</TABLE>
SEPARATE ACCOUNT CHARGES
MORTALITY AND EXPENSE RISK CHARGE
We deduct a mortality and expense risk charge from each Investment Division
to cover our mortality and expense risk. The mortality risk we assume is that
the group of lives insured under our policies may, on average, live for shorter
periods of time than we estimated. The expense risk we assume is that our costs
of issuing and administering policies may be more than we estimated. If these
charges are insufficient to cover assumed risks, the loss will be deducted from
NYLIAC's surplus. Conversely, if the charge proves more than sufficient, any
excess will be added to the NYLIAC surplus.
Current Mortality and Expense Risk Charge - We deduct on a daily basis a
mortality and expense risk charge that is equal to an annual rate of 0.50% of
the average daily net assets of each Investment Division.
Guaranteed Mortality and Expense Risk Charge - While we may change the
level of the mortality and expense risk charge we deduct, we guarantee that this
charge will never be more than an annual rate of 0.80% of the average daily net
assets of each Investment Division.
OTHER CHARGES YOU MIGHT INCUR
We do not currently make any charge against the Investment Divisions for
federal income taxes attributable to them. However, we reserve the right to make
such a charge in order to provide for the future federal income tax liability of
the Investment Divisions. For more information on charges for federal income
taxes, see "Federal Tax Considerations".
ELIGIBLE PORTFOLIO CHARGES
Each Investment Division of the Separate Account purchases shares of the
corresponding Eligible Portfolio at net asset value. The net asset value
reflects the investment advisory fees and other expenses that are deducted from
the assets of the Eligible Portfolio. The advisory fees and other expenses are
not fixed or specified under the terms of the Policy, and they may vary from
year to year. These charges are described in the Funds' prospectuses
accompanying this Prospectus.
18
<PAGE> 25
YOUR POLICY
Policy Owner, or "you" -- As long as your Policy is in force, you can
exercise all rights under the Policy while the Insured is alive and a
beneficiary has not been irrevocably named.
Beneficiary -- You name the beneficiary in the application for the Policy.
You can change the beneficiary during the Insured's lifetime by written request
to us. If no beneficiary is living when the Insured dies, the Life Insurance
Benefit proceeds will be paid to the Policy Owner if living, otherwise to the
Policy Owner's estate.
Assignment -- You can assign your Policy as collateral for a loan or other
obligation. Until you provide us with a copy of the assignment, we are not
responsible for any payment made or action taken. We are not responsible for the
validity of any assignment.
Statements to Policy Owners -- We will send you a statement at least once
each year, showing:
-- the current Cash Value, Cash Surrender Value, Face Amount and Life
Insurance Benefit;
-- the premiums paid, Monthly Deduction amounts and any loans since your
last statement;
-- the principal amount of any loan, and loan interest;
-- any notifications required by the Insurance Department of the state
where your Policy was delivered.
Limit on Right to Contest -- During the Insured's lifetime, we may not
contest the validity of the Policy after it has been in force for two years from
the date we issue the Policy. If the Policy is reinstated, the two-year period
is measured from the date of reinstatement. In addition, if the Insured commits
suicide within two years from the date we issue the Policy, or such period as
specified in state law, the benefit payable will be limited to the Cash Value
minus any indebtedness (except in Missouri).
Misstatement of Age or Sex -- If the age or sex of the Insured is
incorrectly stated, the Life Insurance Benefit will be appropriately adjusted as
specified in the Policy.
POLICY LIMITATIONS
Dividends -- We will not pay any dividends under the Policy.
CHANGES TO POLICY OR SEPARATE ACCOUNT
Substitutions, Additions, or Deletions of Funds -- We reserve the right,
subject to any applicable law, to make certain changes to the Eligible
Portfolios offered under your Policy. We may, in our sole discretion, establish
new Eligible Portfolios. New Eligible Portfolios will be made available to
existing Policy Owners as appropriate.
We may also close one or more Eligible Portfolios to additional payments or
transfers from existing Investment Divisions. We reserve the right to eliminate
the shares of any of the Funds for any reason and to substitute shares of
another registered investment company for the shares of any Fund already
purchased or to be
19
<PAGE> 26
purchased in the future by the Separate Account. To the extent required by the
1940 Act, substitutions of shares attributable to your interest in a Fund will
not be made until we have the approval of the SEC and we have notified you of
the change.
If we decide that it is in the best interest of Policy Owners, the Separate
Account may be operated as a management company under the 1940 Act or any other
form permitted by law, may be de-registered under the 1940 Act in the event such
registration is no longer required, or may be combined with one or more other
Separate Accounts.
Separate Account Taxes -- Currently, there is no charge for federal income
taxes that may be attributable to the Separate Account. However, we reserve the
right to make such a charge in the future. Charges for other taxes, if any,
attributable to the Separate Account may also be made.
PREMIUMS
Application for a Policy -- To purchase a Policy, you must submit an
application to us. We will issue a Policy only on the lives of proposed Insureds
age 90 and under who supply evidence of insurability satisfactory to us.
Acceptance is subject to our underwriting rules and we reserve the right to
reject an application for any reason. Other than those described in this
Prospectus, no change in the terms or conditions of a Policy will be made
without your consent. The minimum initial premium we accept is $10,000 for
Insureds ages 18 and above, and $5,000 for Insureds ages 17 and below as of the
Issue Date.
Your Policy is effective after we receive all outstanding delivery
requirements and receive your initial single premium. You must pay your initial
single premium in a single payment. The date your Policy becomes effective is
called the Policy Date. This date is the date used to determine all future
monthly or annual transactions on your Policy, such as Monthly Deductions.
If your application for a Policy is rejected, we will return your initial
premium payment. In cases where we receive the initial payment with the
application, we will provide fixed conditional insurance during underwriting
according to the terms of conditional receipt you received when you completed
the application and if you die before we finish the underwriting process, we
will pay the Face Amount, up to a limit of $1,000,000. If no fixed conditional
insurance was in effect, then on Policy delivery we will require you to pay the
full initial single premium to place the insurance in force.
Premium Payments -- You pay a single premium and, subject to restrictions,
you can pay additional premiums. However, if payment of additional premiums will
cause the Life Insurance Benefit of your policy to increase more than the Cash
Value of your policy will increase, we may require proof of insurability before
accepting that payment and applying it to your policy. You can choose a single
initial premium based on 80% or 100% of the Guideline Single Premium (based on
the Face Amount). The GSP is shown on your Policy Data page.
The Death Benefit Guarantee is provided only if your initial single premium
is based on 100% of the GSP. It is not available if your initial single premium
is based on 80% of the GSP. If you select an initial single premium based on 80%
of the GSP, you can remit additional premiums up to the maximum limits set by
Section 7702 of the Code (as you can on the 100% GSP option) (Guideline Limits).
However, making these additional
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<PAGE> 27
payments will never result in a Death Benefit Guarantee. We will not accept
premiums that violate the Guideline Limits. Additional premiums may be remitted
up to Maturity. We require any additional premiums payments to be at least $500.
A 9-year surrender charge period will be applied only to the initial single
premium. Additional premiums will not have a separate surrender charge period.
The initial single premium effective date will start the 9-year surrender charge
period.
A 10-year Deferred Sales Expense Charge period will be applied to each
premium remitted. Each premium's effective date will start a 10-year Deferred
Sales Expense Charge period.
Loan repayments are not subject to surrender or Deferred Sales Expense
Charges.
Unplanned premiums, remitted on a Policy with an outstanding loan balance,
will automatically be applied as follows:
-- Loan repayment
-- Unplanned premiums up to the Guideline Limits.
Underwriting -- We have three underwriting categories: Preferred, Select,
and Special. In most states, our categories distinguish between male and female.
However, in Montana, the Policy is underwritten on a gender-neutral basis. Your
underwriting category will help to determine the cost of insurance charge we
assess.
Allocation of Premiums -- We allocate your entire initial premium payment
to the General Account as of the Issue Date. These premium payments remain in
the General Account until the end of the Free Look Period.
We will then allocate the Cash Value (premium payments plus interest
earned, less any partial withdrawals) in the General Account to the investment
options according to the premium allocations you specify in your Policy
application. The allocation is made upon the expiration of the free look period,
or the date we receive the final requirements to put the Policy in force,
whichever is later.
Accumulation Unit Values -- The accumulation unit value for each Investment
Division varies daily to reflect the investment experience of the applicable
underlying Eligible Portfolio. To determine the current accumulation unit value,
we take the prior Valuation Day's accumulation unit value and multiply it by the
Net Investment Factor for the Valuation Period then ended.
Accumulation Units -- The premiums you allocate to the Investment Divisions
are used to purchase Accumulation Units. We determine the number of Accumulation
Units of each Investment Division by dividing the amount of premium you have
allocated to an Investment Division by the accumulation unit value of that
Investment Division on the date the allocation is effective.
The Net Investment Factor is used to measure the investment performance of
an Investment Division from one Valuation Day to the next. The Net Investment
Factor for each Investment Division equals:
-- The net asset value per share of each Eligible Portfolio held in the
Investment Division at the end of the current Valuation Period;
divided by
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<PAGE> 28
-- The net asset value per share of each Eligible Portfolio held in the
Investment Division at the beginning of the Valuation Period.
You should refer to the Funds' prospectuses accompanying this Prospectus
for a description of how the assets of each Fund are valued, because these
determinations have a direct bearing on the Accumulation Unit Value of the
Investment Division and, therefore, your Cash Value.
All valuations in connection with your Policy will be made on the date that
we receive your request or payment at our Home Office before the close of the
New York Stock Exchange on any Valuation Day. Otherwise a valuation will be made
on the next date which is a Valuation Day.
Cash Value -- Each Policy has a Cash Value. There is no minimum guaranteed
Cash Value. The Cash Value equals the current value of the Investment Divisions,
plus the value of the Fixed Account under the policy.
Your Cash Value is related to the Accumulation Unit Value of each
Investment Division to which you have allocated your premiums and to the amounts
that you have allocated to the Fixed Account. The Cash Value on any Valuation
Day is calculated by multiplying the number of Accumulation Units by the
Accumulation Unit Value and then totaling the results for all the Investment
Divisions, and then adding the Cash Value attributable to the Fixed Account to
that total. The Cash Value can change on a daily basis and is computed on each
Valuation Day. Therefore, your Cash Value varies to reflect the investment
performance of the underlying Eligible Portfolios, the value of amounts you have
allocated to the Fixed Account and the Monthly Deduction Amounts.
Suspension of Valuation, Payments and Transfers -- We will suspend all
procedures requiring valuation (including transfers, surrenders and loans) when:
-- the New York Stock Exchange is closed;
-- trading on the New York Stock Exchange is restricted by the SEC;
-- the SEC permits and orders postponement; or
-- the SEC determines that an emergency exists to restrict valuation.
TRANSFERS, DOLLAR COST AVERAGING, AND ACCOUNT REBALANCING
TRANSFERS OF CASH VALUE
While the Policy remains in force, and subject to transfer rules then in
effect, you may request that part or all of the Cash Value of a particular
Investment Division be transferred to other Investment Divisions. We reserve the
right to apply a charge of up to $30 for each transfer (other than Dollar Cost
Averaging, Automatic Asset Allocation and Interest Sweep Transfers) after the
first 12 in a Policy Year. Transfers cannot be made on consecutive Business
Days. We will apply any transfer charge to the appropriate Investment Divisions,
and/or the Fixed Account, on the basis of the amount of the total transfer that
is allocated from each Investment Division and/or the Fixed Account. We also
reserve the right not to accept transfer instructions that are submitted on your
behalf by any person, asset allocation service, and/or market timing service.
Currently, we do not restrict the number of transfers or apply charges on
transfers.
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<PAGE> 29
We require that any transfer between Investment Divisions or from the Fixed
Account to any Investment Division be at least $500 or the balance of an
Investment Division or the Fixed Account. The maximum amount you can transfer
from the Fixed Account to the Investment Divisions during any Policy Year, is
the greater of (i) 20% of the amount in the Fixed Account at the beginning of
the Policy Year or (ii) $5,000. We will not limit the amount of money that can
be transferred into the Fixed Account unless we are crediting interest on
amounts allocated to the Fixed Account at the minimum interest crediting rate of
3%. In those circumstances, we limit transfers to the greater of: (i) 20% of the
total amount in the Investment Divisions at the beginning of the Policy Year; or
(ii) $5,000. This limitation on transfers into the Fixed Account does not apply
if the Insured's Attained age is 65 or greater.
Transfers can be made by written request or by calling us toll free at
1-800-598-2019. Transfers by telephone may be made by the agent of record or by
an attorney-in-fact pursuant to a power of attorney. We will use reasonable
procedures to make sure that the instructions we receive through the telephone
are genuine. Before a service representative accepts any request, he or she will
ask the caller for the caller's Social Security Number and address. We will also
record all calls.
You can use the Voice Response Unit (VRU) to transfer Cash Value among the
Investment Divisions and/or the Fixed Account and change the allocation of any
unplanned premium payments. You must complete a Telephone Authorization Form to
conduct telephone transfers through the VRU. We will assign a personal
identification number (PIN) to you. You must properly enter the PIN before we
allow any transactions through the VRU. We reserve the right to temporarily
discontinue the availability of the VRU.
We will confirm all telephone transactions in writing. We are not
responsible for any loss, cost or expense for any actions we take based on
telephone instructions we believe are genuine.
It is your responsibility to verify the accuracy of all confirmations and
to promptly advise us of any inaccuracies within 30 days of receipt.
Transfer requests received after 4:00 p.m. will be priced as of the next
Business Day. Transfers will be effected at the price next determined after
receipt of the transfer request.
DOLLAR COST AVERAGING
Our Dollar Cost Averaging program permits you to instruct us to make
periodic transfers automatically from any of the Investment Divisions to any of
the other Investment Divisions or to the Fixed Account. You cannot instruct us
to make transfers automatically FROM the Fixed Account to any of the Investment
Divisions. In addition, if we are crediting interest to the Fixed Account at the
minimum interest crediting rate of 3%, we will limit Dollar Cost Averaging
transfers to the Fixed Account to the greater of 20% of the Cash Value of the
Investment Divisions at the beginning of that Policy Year or $5,000.
If you want to participate in our Dollar Cost Averaging program, your Cash
Value must be at least $2,500. You must then continually maintain a minimum Cash
Value of at least $2,000 to continue to participate in our Dollar Cost Averaging
program.
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<PAGE> 30
You instruct us:
-- How much Cash Value to transfer (at least $100).
-- The accounts TO and FROM which Cash Value should be transferred.
-- How often you want us to transfer Cash Value -- monthly, quarterly,
semi-annually or annually.
-- What day of the month you want us to transfer Cash Value - you can
select any day of the month except the 29th, 30th or 31st.
-- The termination date, if applicable.
Confirmation statements are sent for each transfer as it occurs. Dollar
Cost Averaging cannot be used in conjunction with Automatic Asset Reallocation.
AUTOMATIC ASSET REALLOCATION
Our Automatic Asset Reallocation program permits you to instruct us to
automatically reallocate Cash Value among the Investment Divisions to maintain a
proportion that you pre-determine. To participate, your Cash Value allocated to
the Investment Divisions must be at least $2,500. You must then continually
maintain a minimum Cash Value allocated to the Investment Divisions of at least
$2,000 to continue to participate.
To participate, you instruct us:
-- How often you want us to transfer Cash Value -- monthly, quarterly,
semi-annually or annually.
-- What day of the month you want us to transfer Cash Value -- you can
select any day of the month except the 29th, 30th or 31st.
Confirmation statements are sent for each transfer as it occurs. Automatic
Asset Reallocation cannot be used in conjunction with Dollar Cost Averaging.
INTEREST SWEEP
Our Interest Sweep program permits you to instruct us to automatically
transfer interest earned in the Fixed Account to one or more Investment
Division(s). To participate in our Interest Sweep program, your Cash Value
allocated to the Fixed Account must be at least $2,500 and you must continually
maintain a minimum Cash Value of $2,000 in the Fixed Account to continue to
participate.
You instruct us:
-- When you want us to begin Interest Sweep.
-- How often you want us to transfer Cash Value -- monthly, quarterly,
semi-annually or annually.
-- How to allocate transfers among Investment Division(s).
The aggregate amount of funds transferred FROM the Fixed Account in any
given Policy year may not be greater than (i) 20% of the amount in the Fixed
Account at the beginning of the Policy Year or (ii) $5,000.
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<PAGE> 31
THIRD PARTY INVESTMENT ADVISORY ARRANGEMENTS
In some cases, the Policy may be sold to Policy Owners who independently
utilize the services of a third party adviser offering asset allocation and/or
market timing services. NYLIAC may honor transfer and withdrawal instructions
from such asset allocation and market timing services if it has received
authorization to do so from the Policy Owner participating in the service. We do
not endorse, approve or recommend such services in any way and you should be
aware that fees paid for such services are separate from and in addition to fees
paid under the Policy.
Because the amounts associated with some of these transactions may be
unusually large, the investment advisers may have difficulty processing the
transactions. In addition, execution of such transactions may possibly adversely
affect the accumulation values of Policy Owners who are not utilizing asset
allocation or market timing services. Accordingly, NYLIAC reserves the right to
not accept transfer instructions which are submitted by any person, asset
allocation and/or market timing services on behalf of Policy Owners. We will
exercise this right only in accordance with uniform procedures that we may
establish from time to time and that will not unfairly discriminate against
similarly situated Policy owners.
LIFE INSURANCE BENEFITS AND CASH VALUES
Life Insurance Benefit -- While the Policy is in force, we will pay the
Life Insurance Benefit proceeds to the beneficiary when the Insured dies. You
must notify us in writing as soon as possible after the death of the Insured.
The Life Insurance Benefit proceeds payable to the beneficiary equal the Life
Insurance Benefit less any unpaid loan principal and interest outstanding, and
any past due Monthly Deductions.
We will pay interest of at least 3% per year on the Life Insurance Benefit
proceeds from the date of the Insured's death to the date we pay the Life
Insurance Benefit proceeds in a lump sum or until a periodic payment option is
selected.
The Life Insurance Benefit equals the greater of:
-- the Face Amount; or
-- the Cash Value multiplied by a specified percentage.
The percentage varies according to the attained age of the Insured and is
specified in the Policy. Therefore, an increase in Cash Value may increase the
Life Insurance Benefit under certain circumstances. However, because the Life
Insurance Benefit will never be less than the Face Amount, a decrease in Cash
Value due to market performance may decrease the Life Insurance Benefit, but
never below the Face Amount. This is illustrated in the following example:
EXAMPLE
<TABLE>
<CAPTION>
A B
--------- ---------
<S> <C> <C>
Face Amount......................................... $100,000 $100,000
Insured's Age....................................... 40 40
Cash Value on Date of Death......................... $ 50,000 $ 25,000
Specified Percentage................................ 250% 250%
</TABLE>
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<PAGE> 32
In Example A, the Life Insurance Benefit equals $125,000, i.e., the greater
of $100,000 (the Face Amount) or $125,000 (the Cash Value at the Date of Death
of $50,000, multiplied by the specified percentage of 250%). This amount minus
any outstanding loan principal and interest and unpaid Monthly Deductions
constitutes the Life Insurance Benefit proceeds which we would pay to the
beneficiary. In Example B, the life insurance benefit is $100,000, i.e., the
greater of $100,000 (the Face Amount) or $62,500 (the Cash Value of $25,000,
multiplied by the specified percentage of 250%).
Life Insurance Benefit Policy Proceeds -- Proceeds from the Life Insurance
Benefit are placed in the General Account once we receive written notification
of the Insured's death. All or part of the Life Insurance Benefit proceeds can
be paid in cash or applied under a periodic payment option.
Periodic Payment Options -- The Life Insurance Benefit proceeds under your
Policy can be paid in a lump sum or can be applied to one of our periodic
payment options. If any payment under an option would be less than $100, we will
pay any unpaid amount in a lump sum. You can select a payment option before the
Insured dies. After the Insured dies, any beneficiary who would otherwise
receive Life Insurance Benefit proceeds in a lump sum can select a periodic
payment option. If a payment option is selected, the proceeds are not subject to
the investment experience of the Separate Account.
The following settlement options are available under your Policy:
OPTION 1A AND 1B -- INTEREST INCOME
You can keep Life Insurance Benefit proceeds with us and earn interest. We
will set an interest rate each year. The interest rate will never be less than
3% per year.
OPTION 1A -- INTEREST ACCUMULATION OPTION
We will credit interest each year on the Life Insurance Benefit proceeds we
still have. The beneficiary may withdraw Life Insurance Benefit proceeds in
increments of $100 or greater. We pay interest to the date of withdrawal on
amounts withdrawn.
OPTION 1B -- INTEREST PAYMENT OPTION
You can instruct us to pay interest: (i) once each month; (ii) once every
three months; (iii) once every six months; or (iv) once every year.
OPTION 2 -- LIFE INCOME OPTION
We will make equal payments every month during the lifetime of the
beneficiary or the beneficiaries. We determine the amount of the monthly payment
by applying the Life Insurance Benefit proceeds to purchase a corresponding
single premium life annuity policy which is being issued when the first payment
is due. We determine payment amounts by multiplying the amount applied to the
annuity by an annuity rate. The annuity rate is set by us and is not less than
the rate specified in the Option 2 Table in your Policy.
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<PAGE> 33
Benefits at Maturity -- If the Insured is living on the "Maturity Date"
(the anniversary of the Policy Date on which the Insured is age 100), you may
elect to:
1. continue the Policy with the Death Benefit Guarantee (if the Death
Benefit Guarantee is in effect);
2. continue the Policy without the Death Benefit Guarantee; or
3. surrender the Policy.
If you do not make an election, we will not distribute the Cash Surrender
Value to you. Instead, if the Death Benefit Guarantee is in effect, we will
automatically continue the Policy with the Death Benefit Guarantee. We will
transfer all amounts you have allocated to the Investment Divisions to a cash
management investment divisions. Your Face Amount and Death Benefit Guarantee
amount will be the greater of the Death Benefit Guarantee amount at Maturity or
the Cash Value at Maturity. We will not assess any further Monthly Deductions,
but we will continue to deduct Separate Account charges and the Eligible
Portfolio will continue to deduct its own fees and expenses. You will not be
permitted to make transfers into any other Investment Division, make additional
premium payments into any Investment Division other than the Cash Management
investment divisions, or make partial withdrawals.
If the Death Benefit Guarantee is not in effect, or if you affirmatively
elect to continue the Policy without the Death Benefit Guarantee, your Cash
Value will remain invested in the same investment options as before Maturity.
You will be paid the Cash Surrender Value upon the death of the insured. We will
not assess any further Monthly Deductions, but we will continue to deduct
Separate Account charges and the Eligible Portfolios will continue to deduct
their own fees and expenses.
If you surrender the Policy to us, we will pay you the Cash Surrender
Value, the Policy will terminate, and we will have no further obligations under
the Policy.
Charges and Cash Values -- Your Cash Value decreases due to the deduction
of Policy charges. Cash Value may increase or decrease depending on investment
performance. Fluctuations in your Cash Value may cause your Policy to lapse
unless you have a Death Benefit Guarantee. If your Policy lapses, your Policy
terminates and no Life Insurance Benefit will be paid.
MAKING WITHDRAWALS FROM YOUR POLICY
Surrenders -- While your Policy is in force, you can, without the consent
of any revocable beneficiary, fully surrender your Policy. Upon surrender, you
receive the Cash Surrender Value determined as of the day we receive your
request or the effective surrender date that you request, if later. We pay the
Cash Surrender Value of the Policy within seven days of our receipt of your
written request or on the effective surrender date that you request, whichever
is later. Your Policy will terminate on the date of our receipt of the written
request, or the date you request the surrender to be effective, whichever is
later. For a discussion of the tax consequences of surrendering your Policy, see
"Federal Tax Considerations".
Partial Withdrawals -- While your Policy is in force, you can elect, by
written request, to make partial withdrawals. The Cash Surrender Value after a
partial withdrawal cannot be reduced below the minimum initial single premium
required by issue age ($5,000 for
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<PAGE> 34
issue ages 17 and below; $10,000 for issue ages 18 and above); otherwise, the
request will be treated as a request for full surrender. We will deduct partial
withdrawals proportionally from each Investment Division, unless you instruct
otherwise. In any Policy Year, partial withdrawals in excess of the greater of
10% of premiums paid or 100% of Gain will be subject to the Surrender Charge.
For a discussion of the tax consequences of partial withdrawals, see "Federal
Tax Considerations".
If you make a partial withdrawal and your Policy's Life Insurance Benefit
equals the Face Amount, we will reduce the Face Amount. The Cash Value will also
be reduced, on a dollar-for-dollar basis, by the amount of your partial
withdrawal plus any applicable fees and charges. If your Policy's Life Insurance
Benefit exceeds the Face Amount, then
-- if, after the withdrawal, your Policy's Life Insurance Benefit would
continue to exceed the Face Amount, we will reduce your Life Insurance
Benefit by the amount of the Cash Value you withdrew plus any
applicable fees and charges, multiplied by an applicable percentage
that you will find in your Policy in the table captioned "Table Of
Percentages For Life Insurance Benefit For Compliance With IRC Section
7702", and we will reduce the Cash Value on a dollar-for-dollar basis
by the amount of your partial withdrawal plus any fees and charges; or
-- if, after the withdrawal, your Policy's Life Insurance Benefit would
not continue to exceed the Face Amount, we will first determine how
much of your withdrawal is attributable to a reduction of the Life
Insurance Benefit to the Face Amount. We then reduce your Policy's
Face Amount by an amount equal to the remainder of the withdrawal. We
will reduce the Cash Value on a dollar-for-dollar basis by the amount
of your partial withdrawal plus any applicable fees and charges.
Right to Examine -- You have a limited right to return your Policy for
cancellation. You can deliver or mail the Policy to us or to the registered
representative from whom it was purchased any time during your free look period.
Your free look period begins on the day you get your Policy and ends twenty days
after you get it (you should refer to Appendix for variations in the
District of Columbia, New York and North Carolina). In such event, the Policy
will be rescinded and we will pay an amount equal to the Cash Value or the
amount of premiums you paid, less any loans and partial withdrawals you have
previously taken, whichever is greater. If your Policy is replacing another
Policy, your free look period and the amount paid to you upon the return of your
Policy vary by state.
Right to Exchange -- Once the Policy is in effect, it may be exchanged,
during the first 24 months after issue, for a non-variable permanent life
insurance policy offered by us (or an affiliated company) on the life of the
Insured. No evidence of insurability will be required. The new policy will have
the same Net Amount at Risk as under the exchanged Policy on the date of
exchange or the same Death Benefit. The effective date, issue date and issue age
will be the same as existed under the exchanged Policy. If a Policy loan was
outstanding, the entire loan must be repaid. The exchange is subject to
adjustments in payments and Cash Values to reflect variances, if any, in the
payments and Cash Values under this Policy and the new policy.
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<PAGE> 35
LOANS
Availability of Loans -- At any time while the Policy is in force, you,
without the consent of any revocable beneficiary, can borrow against the Policy.
Any new loan taken together with any existing loans and accrued interest cannot
exceed 90% of the Cash Surrender Value. There is no minimum loan amount.
Because, under most circumstances, the Policy is deemed a modified endowment
contract under the Internal Revenue Code, there may be adverse tax consequences
if you take a loan. Loans will be taxed to the extent of any Gain. You may also
be required to pay a 10% tax penalty on distributions to the extent of any
Gains. For a discussion of tax consequences of loans, see "Federal Tax
Considerations -- Modified Endowment Contracts".
The proceeds of a loan will be delivered to you within seven business days
of our receipt of the loan request.
Unless you specify otherwise, all loan amounts will be transferred on a pro
rata basis from each Investment Division to the Fixed Account.
There must be an amount equal to 106% of any outstanding loan (including
interest) plus 106% of the new loan in the Fixed Account. If a sufficient amount
is not in the Fixed Account when the loan is requested, a sufficient amount will
be transferred FROM the Investment Divisions TO the Fixed Account. While there
is an outstanding loan, no Partial Withdrawal or Transfer that would reduce the
Cash Value in the Fixed Account below 106% of the total outstanding loan will be
permitted.
If the total amount of any unpaid loans (including any accrued loan
interest) is greater than the Cash Surrender Value on any Monthly Deduction Day
and the Death Benefit Guarantee is not in effect, we will give you written
notice that, unless we receive an additional payment within 62 days to reduce
the aggregate outstanding loan(s) secured by the Policy, the Policy may lapse.
See "Lapse and Reinstatement."
Loan Interest Due -- Loan interest accrues each day and is payable on the
Policy anniversary, on the date of death, surrender, lapse or on the date of a
new loan (loan increase) or loan repayment. Loan interest not paid in cash (by
31 days following the Policy Anniversary) will be capitalized and added to the
loan principal. This may cause additional amounts to be transferred from the
Investment Divisions to the Fixed Account.
Loan Repayments -- You can repay all or any part of a loan at any time
while your Policy is in force. The amount of your Policy loan repayment will be
deducted from the values held as collateral against the loan with the Fixed
Account. It will be allocated among the Investment Divisions in the same
percentage as premiums are allocated. If your Policy lapses any outstanding loan
plus interest must be repaid before the Policy will be reinstated.
Effect of Loans on Cash Value -- A loan, repaid or not, has a permanent
effect on your Cash Value. This effect occurs because the investment result of
each Investment Division applies only to the amount remaining in such Investment
Divisions. The longer a loan is outstanding, the greater the effect on your Cash
Value is likely to be. The effect could be favorable or unfavorable. If the
Investment Divisions earn more than the annual interest rate for loaned amounts
held in the Fixed Account, your Cash Value will not increase as rapidly as it
would have had no loan been made. If the Investment Divisions earn less than the
interest earned on loaned amounts held in the Fixed Account, then your Cash
Value may be greater than it would have been had no loan been made. If not
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<PAGE> 36
repaid, the aggregate amount of the outstanding loan principal and any accrued
interest will reduce the Policy Proceeds that might otherwise be payable.
In addition, because the Policy is deemed a modified endowment contract,
unpaid loan interest generally will be treated as a new loan under the Code.
Therefore, there may be adverse tax consequences. For a discussion of the tax
consequences of borrowing against the Policy, see "Federal Tax
Considerations -- Modified Endowment Contracts."
Effect of Loans on the Death Benefit Guarantee -- If, at any time, the
total amount of loan principal (including any capitalized interest outstanding)
exceeds 50% of the Cash Value, the Death Benefit Guarantee will terminate.
We will notify you if your requested loan activity will cause the total
amount of loan principal to exceed 50% of the Cash Value. Your loan principal
can exceed 50% of Cash Value if you make a loan request or if we capitalize
accrued and unpaid loan interest. You must cancel your loan request or pay
accrued interest before it is capitalized in order to prevent the Death Benefit
Guarantee from terminating.
Credited Interest -- The interest rate credited to amounts held in the
Fixed Account as collateral for a loan will be 5% until the 11th Policy Year and
then it will be 5.5%.
Policy Loan Rates -- The loan interest rate that we currently charge on all
loans is 6% per year, in arrears. The loan interest rate is guaranteed not to
exceed 8% per year for the life of the Policy.
LAPSE AND REINSTATEMENT
Lapse -- Your Policy will remain in force unless the Cash Surrender Value
is insufficient to cover the Deduction Amount due on a Monthly Deduction Date
and your Policy does not include the Death Benefit Guarantee. We will notify you
in writing, warning you that your Policy is in danger of terminating.
Grace Period -- Your Policy provides a 62-day grace period (31 days for
Policies issued in Florida) to pay an amount sufficient to cover the amount due.
The notice will indicate the amount that must be paid. Certain states have
special provisions. See Appendix for details.
The Policy will continue through the grace period, but if no additional
premium payment is made and the Cash Surrender Value remains insufficient to
cover the amounts due, it will terminate at the end of the grace period. If the
Insured dies during the grace period, the Life Insurance Benefit Proceeds
payable under the Policy will be reduced by the Deduction Amount(s) due. See
"Death Benefits and Cash Values".
Reinstatement -- If your Policy lapses, you can apply for reinstatement of
the Policy by payment of the reinstatement premium described in the Policy
including any charges due. A request for reinstatement can be made within five
years of lapse. If a loan is outstanding at the time of lapse, we require
repayment of the loan before you can reinstate. In addition, we reserve the
right to require evidence of insurability satisfactory to NYLIAC.
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<PAGE> 37
ADDITIONAL BENEFITS THROUGH RIDERS AND OPTIONS
You may apply for additional benefits by selecting the Living Benefits
Rider (also known as the Accelerated Benefits Rider) at no additional charge.
Subject to availability in each jurisdiction, we will include a Spouse's Paid-up
Insurance Purchase Option Rider with your Policy at no additional charge.
LIVING BENEFITS RIDER
Under this rider, if the insured has a life expectancy of twelve months or
less, in most states you may request a portion or all of the Life Insurance
Benefit proceeds as an accelerated death benefit.
You may elect to receive an accelerated death benefit of 25%, 50%, 75%, or
100% of certain eligible proceeds from your Life Insurance Benefit proceeds. We
will pay you an amount equal to:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Elected X Eligible X Interest - Administrative fee - Elected percentage of any
percentage proceeds factor (up to $150) unpaid Policy loan
</TABLE>
Minimum accelerated benefit amount: $25,000.
Maximum accelerated benefit amount: $250,000 (total for all of your NYLIAC
policies).
If you accelerate less than 100% of the eligible proceeds, the remaining
Face Amount of your Policy after we pay this benefit must be at least $50,000.
We do not permit any subsequent acceleration.
When we make a payment under this rider, we will reduce your Policy's Face
Amount, Monthly Deductions, Cash Value, and any unpaid Policy loan based on the
percentage you elected.
SPOUSE'S PAID-UP INSURANCE PURCHASE OPTION RIDER
This rider allows a spouse who is the Beneficiary under the Policy to
purchase a new paid-up whole life insurance policy on his or her own life
without evidence of insurability when the Insured dies. This rider is included
in the Policy at no additional cost.
The maximum face amount of the new paid-up whole life policy is the lesser
of:
(i) the Life Insurance Benefit payable under this Policy (before any unpaid
loan is deducted); or
(ii) $5,000,000.
If the Insured's spouse dies at the same time as the Insured or within 90
days after the Insured's death and does not exercise the option under this
rider, we will pay a benefit to the spouse's estate equal to the maximum amount
of insurance coverage that could have been purchased under this rider minus the
premium payment that would have been required for that insurance.
If someone other than the spouse (including a trust) is the owner and
beneficiary under the Policy, that person can also exercise the option and
purchase a paid-up whole life Policy on the life of the spouse. The owner must
have an insurable interest in
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<PAGE> 38
the life of the spouse and the spouse must consent to the issuance of the new
insurance in writing.
FEDERAL TAX CONSIDERATIONS
GENERAL
Since federal tax law is complex, the tax consequences of purchasing this
Policy will vary depending on your situation. You may need tax or legal advice
to help you determine whether purchasing this Policy is right for you.
Our general discussion of the tax treatment of this Policy is based on our
understanding of federal income tax laws as they are currently interpreted. A
detailed description of all federal income tax consequences regarding the
purchase of this Policy cannot be made in the Prospectus. We also do not discuss
state, municipal or other tax laws that may apply to this Policy. For detailed
information, you should consult with a qualified tax adviser familiar with your
situation.
TAXATION OF NYLIAC AND THE SEPARATE ACCOUNT
The Separate Account is taxed as a part of NYLIAC, which is taxed as a life
insurance company under Subchapter L of the Code. Accordingly, the Separate
Account will not be taxed as a "regulated investment company" under Subchapter M
of the Code. Investment income and realized capital gains on the assets of the
Separate Account (the Eligible Portfolios) are reinvested and are taken into
account in determining the value of the Accumulation Units. As a result, such
investment income and realized capital gains are automatically applied to
increase reserves under the Policy.
NYLIAC does not expect to incur any federal income tax on the earnings or
realized capital gains attributable to the Separate Account. Based upon this
expectation, no charge is currently being made to the Separate Account for
federal income taxes. If NYLIAC incurs income taxes attributable to the Separate
Account or determines that such taxes will be incurred, it may assess a charge
for such taxes against the Separate Account.
INCOME TAXATION OF POLICY BENEFITS
For federal income tax purposes, the Policy should be treated as a life
insurance contract under Section 7702 of the Code. The death benefit under a
life insurance contract is generally excluded from the gross income of the
beneficiary. Also, a life insurance policy owner is generally not taxed on
increments in the contract value until the policy is partially or completely
surrendered. Section 7702 limits the amount of premiums that can be invested in
the Policy in order for it to qualify as life insurance. NYLIAC intends to
monitor premium levels to assure compliance with the Section 7702 requirements.
During the first fifteen Policy Years, an "income first" rule generally
applies to distributions of cash value required to be made under Code Section
7702 because of a reduction in benefits under the Policy.
You should consult with a qualified tax adviser for specific information.
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<PAGE> 39
MODIFIED ENDOWMENT CONTRACTS (MECS)
A life insurance contract is treated as a "modified endowment contract"
under Section 7702A of the Code if it meets the definition of life insurance in
Section 7702 but fails the "seven pay" test of Section 7702A. The seven-pay test
provides that premiums cannot be paid at a rate more rapidly than that allowed
by the payment of seven annual premiums computed under rules set forth in
Section 7702A(c). The single premium permitted under the Policy does not meet
the specified computational rules for the "seven-pay test" under Section
7702A(c). Therefore, the Policy will generally be treated as a modified
endowment contract for federal income tax purposes. However, an exchange under
Section 1035 of the Code of a life insurance policy issued before June 21, 1988,
which is not classified as a modified endowment contract, will not cause the new
Policy to be treated as a modified endowment contract if no additional premiums
are paid.
A life insurance policy that is classified as a modified endowment contract
is eligible for certain aspects of the beneficial tax treatment accorded to life
insurance. That is, the death benefit is excluded from income and increases in
value are not subject to current taxation. However, loans, distributions or
other amounts received from a modified endowment contract during the life of the
insured will be taxed to the extent of any Gain in the Policy. Amounts that are
taxable withdrawals will be subject to a 10% additional tax, with certain
exceptions.
All modified endowment contracts that are issued within any calendar year
to the same policy owner by one company or its affiliates shall be treated as
one modified endowment contract in determining the taxable portion of any loan
or distributions.
You should consult with a qualified tax adviser for specific information.
ESTATE AND GENERATION SKIPPING TAXES
When the Insured dies, the death benefit proceeds will generally be
includable in your estate for purposes of federal estate tax if you are the
insured. If you were not the Insured, the fair market value of the Policy would
be included in your estate upon your death. Nothing would be includable in the
Insured's estate if he or she neither retained incidents of ownership at death
nor had given up ownership within three years before death.
The federal estate tax is integrated with the federal gift tax under a
unified rate schedule and unified credit which shelters up to $675,000 (2000)
from the estate and gift tax. The Taxpayer Relief Act of 1997 gradually raises
the credit over the next six years to $1,000,000. In addition, an unlimited
marital deduction may be available for federal estate and gift tax purposes. The
unlimited marital deduction permits the deferral of taxes until the death of the
surviving spouse (when the death benefit proceeds would be available to pay
taxes due and other expenses incurred).
If you (whether or not you are an Insured) transfer ownership of the Policy
to someone two or more generations younger, the transfer may be subject to the
generation-skipping transfer tax, the taxable amount being the value of the
Policy. The generation-skipping transfer tax provisions generally apply to
transfers which would be subject to the gift and estate tax rules. Individuals
are generally allowed an aggregate generation skipping transfer exemption of $1
million, as adjusted for inflation. Because
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<PAGE> 40
these rules are complex, you should consult with a qualified tax adviser for
specific information if ownership is passing to younger generations.
DIVERSIFICATION REQUIREMENTS
The Code requires that investments supporting your Policy be adequately
diversified. Code Section 817 provides that a variable life insurance contract
will not be treated as a life insurance contract for any period during which the
investments made by the separate account or underlying fund are not adequately
diversified. If a contract is not treated as a life insurance contract, the
Policy owner will be subject to income tax on annual increases in cash value.
The Treasury Department's diversification regulations require, among other
things, that:
-- no more than 55% of the value of the total assets of the segregated
asset account underlying a variable contract is represented by any one
investment,
-- no more than 70% is represented by any two investments,
-- no more than 80% is represented by any three investments and
-- no more than 90% is represented by any four investments.
In determining whether the diversification standards are met, all
securities of the same issuer, all interests in the same real property project,
and all interests in the same commodity are each treated as a single investment.
In the case of government securities, each government agency or instrumentality
is treated as a separate issuer.
A separate account must be in compliance with the diversification standards
on the last day of each calendar quarter or within 30 days after the quarter
ends. If an insurance company inadvertently fails to meet the diversification
requirements, the company may still comply within a reasonable period and avoid
the taxation of contract income on an ongoing basis. However, either the company
or you must agree to pay the tax due for the period during which the
diversification requirements were not met.
We monitor the diversification of investments in the separate accounts and
test for diversification as required by the Code. We intend to administer all
policies subject to the diversification requirements in a manner that will
maintain adequate diversification.
OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT
In order for a variable life insurance policy to qualify for tax deferral,
assets in the separate accounts supporting the contract must be considered to be
owned by the insurance company and not by you. It is unclear under what
circumstances an investor is considered to have enough control over the assets
in the separate account to be considered the owner of the assets for tax
purposes.
The IRS has issued several rulings discussing investor control. These
rulings say that certain incidents of ownership by an owner of a variable life
insurance policy, such as the ability to select and control investments in a
separate account, will cause the owner to be treated as the owner of the assets
for tax purposes.
In its explanation of the diversification regulations, the Treasury
Department recognized that the temporary regulations "do not provide guidance
concerning the
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<PAGE> 41
circumstances in which investor control of the investments of a segregated asset
account may cause the investor, rather than the insurance company, to be treated
as the owner of the assets in the account." The explanation further indicates
that "the temporary regulations provide that in appropriate cases a segregated
asset account may include multiple sub-accounts, but do not specify the extent
to which Policy Owners may direct their investments to particular sub-accounts
without being treated as the owners of the underlying assets. Guidance on this
and other issues will be provided in regulations or revenue rulings under
Section 817(d), relating to the definition of variable contract."
The final regulations issued under Section 817 did not provide guidance
regarding investor control, and as of the date of this Prospectus, guidance has
yet to be issued. We do not know if additional guidance will be issued. If
guidance is issued, we do not know if it will have a retroactive effect.
Due to the lack of specific guidance on investor control, there is some
uncertainty about when you are considered the owner of the assets for tax
purposes. We reserve the right to modify the Policy, as necessary to prevent you
from being considered the owner of assets in the separate account.
TAX DEFERRAL DURING ACCUMULATION PERIOD
Under existing provisions of the Code, except as described below, any
increase in your Cash Value is generally not taxable to you unless amounts are
received (or are deemed to be received) under the Policy prior to the Insured's
death. If the Policy is surrendered or matures, the amount received will be
includable in your income to the extent that it exceeds your "investment in the
contract." (If there is any debt at the time of a surrender, then such debt will
be treated as an amount distributed to you.) The "investment in the contract" is
the aggregate amount of premium payments and other consideration paid for the
Policy, less the aggregate amount received previously under the Policy to the
extent such amounts received were excluded from gross income. Because the Policy
is generally a modified endowment contract (unless it is the product of an
exchange under Section 1035 of the Code of a contract that is not a modified
endowment contract), partial withdrawals (or other such amounts deemed to be
distributed) from the Policy constitute income to you for Federal income tax
purposes to the extent of the Gain in the Policy.
You should consult with a qualified tax adviser for specific information.
LIFE INSURANCE PURCHASED FOR USE IN SPLIT DOLLAR ARRANGEMENTS
A technical advice memorandum ("TAM") issued by the National Office of the
IRS, provides advice as to the internal revenue laws, regulations, and related
statutes with respect to a specific set of facts and a specific taxpayer. On
January 26, 1996, the IRS released a TAM on the taxability of life insurance
policies used in certain split dollar arrangements. In the TAM, among other
things, the IRS concluded that an employee was subject to current taxation on
the excess of the cash surrender value of the policy over the premiums to be
returned to the employer. Purchasers of life insurance policies to be used in
split dollar arrangements are strongly advised to consult with a qualified tax
adviser to determine the tax treatment resulting from such an arrangement.
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FEDERAL INCOME TAX WITHHOLDING
If any amounts are deemed to be current taxable income to you, such amounts
will be subject to federal income tax withholding and reporting, pursuant to the
Code.
NON-INDIVIDUAL OWNERSHIP OF POLICIES
In certain circumstances, the Code limits the application of specific tax
advantages to individual owners of life insurance contracts. Prospective Policy
owners which are not individuals should consult a qualified tax adviser to
determine the potential impact on the purchaser.
OTHER
Federal estate tax, state and local estate, inheritance and other tax
consequences of ownership, or receipt of Policy proceeds depend on the
circumstances of each Policy owner or beneficiary. A tax adviser should be
consulted to determine the impact of these taxes.
LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
The discussion above provides general information regarding U.S. federal
income tax consequences to life insurance purchasers that are U.S. citizens or
residents. Purchasers that are not U.S. citizens or residents will generally be
subject to U.S. federal income tax and withholding on taxable distributions from
life insurance policies at a 30% rate, unless a lower treaty rate applies. In
addition, purchasers may be subject to state and/or municipal taxes and taxes
that may be imposed by the purchaser's country of citizenship or residence.
Prospective purchasers are advised to consult with a qualified tax adviser
regarding U.S. state, and foreign taxation with respect to a life insurance
Policy purchase.
LEGAL PROCEEDINGS
NYLIAC is a defendant in individual and/or alleged class action suits
arising from its agency sales force, insurance (including variable contracts
registered under the federal securities law), investment, retail securities,
employment and benefits and/or other operations, including actions involving
retail sales practices. Most of these actions also seek substantial or
unspecified compensatory and punitive damages. NYLIAC is also from time to time
involved in various governmental, administrative, and investigative proceedings
and inquiries.
Notwithstanding the uncertain nature of litigation and regulatory
inquiries, the outcome of which cannot be predicted, NYLIAC believes that, after
provisions made in the financial statements, the ultimate liability that could
result from litigation and proceedings would not have a material adverse effect
on NYLIAC's financial position; however, it is possible that settlements or
adverse determinations in one or more actions or other proceedings in the future
could have a material adverse effect on NYLIAC's operating results for a given
year.
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<PAGE> 43
OTHER MATTERS
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION ABOUT CHARGES
Cost of Insurance Charge -- The cost of insurance charge covers NYLIAC's
anticipated mortality costs for preferred, select and special risks. On each
Monthly Deduction Day, we will deduct a charge for cost of insurance protection
from the cash value of your Policy.
The cost of insurance charge is calculated by multiplying the Net Amount at
Risk on the Monthly Deduction Day by the monthly cost of insurance rate which
applies to the insured at that time. The net amount at risk is based on the
difference between the current Life Insurance Benefit of your Policy and the
Policy's Cash Value.
Your cost of insurance charge will vary from month to month with changes in
the net amount at risk. We base the monthly cost of insurance rate we apply to
your Policy on our current monthly cost of insurance rates. We may change these
rates from time to time. However, the current rates will never be more than the
guaranteed maximum rates shown on the Policy Data Page. We base the guaranteed
rates on the 1980 Commissioner's Standard Ordinary Mortality Tables appropriate
to each Insured's underwriting class if the insured is a preferred or select
underwriting class. We base the guaranteed rates for policies that insure
insureds in special underwriting classes on different scales. We base the
current monthly cost of insurance rates on such factors as the sex, underwriting
class and issue age of the Insured. Changes to the current monthly cost of
insurance rates will be based on changes in future expectations of such factors
as mortality, investment income, expenses and persistency.
EXPERTS
Independent Public Accountants -- The audited financial statements included
in this registration statement have been audited by PricewaterhouseCoopers, LLP,
independent public accountants as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in giving said reports. The principal business address of
PricewaterhouseCoopers, LLP is 1177 Avenue of the Americas, New York, New York
10036.
Actuarial Expert -- The hypothetical Policy illustrations included in this
registration statement with respect to the Separate Account have been approved
by Michael Fong, FSA, MAAA, Assistant Actuary, for NYLIAC, and are included in
reliance upon his opinion as to their reasonableness.
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DIRECTORS AND OFFICERS OF NYLIAC
The following table shows a brief description of the business experience of
officers and directors of New York Life Insurance and Annuity Corporation:
<TABLE>
<CAPTION>
DIRECTORS POSITIONS DURING LAST FIVE YEARS
<S> <C>
Seymour Sternberg......................... Chairman of the Board, Chief Executive Officer and
President of New York Life from April 1997 to date;
President and Chief Operating Officer of New York
Life from October 1995 to April 1997; Vice Chairman
and President Elect from February 1995 to October
1995; Executive Vice President prior thereto.
President of NYLIAC from November 1995 to May 1997.
Gary G. Benanav........................... Vice Chairman of New York Life from November 1999 to
date, Executive Vice President from 1997 to November
1999. Chairman and Chief Executive Officer of New
York Life International from December 1997 to date.
Executive Vice President and Chairman of Taiwan
Branch of NYLIAC from May 1998 to date. President of
Aeris Ventures, LLC from January to December, 1997.
Prior thereto, Executive Vice President of Aetna Life
and Casualty Company.
Frederick J. Sievert...................... Vice Chairman of New York Life from January 1997 to
date; Executive Vice President from February 1995 to
January 1997; Senior Vice President and Chief
Financial Officer--Individual Operations prior
thereto. President of NYLIAC from May 1997 to date;
Executive Vice President from November 1995 to May
1997; Senior Vice President prior thereto.
Howard I. Atkins.......................... Executive Vice President and Chief Financial Officer
of New York Life and NYLIAC from April 1996 to date;
Chief Financial Officer of Midlantic Corporation
prior thereto.
Phillip J. Hildebrand..................... Executive Vice President of New York Life from March
1999 to date; Senior Vice President in charge of the
Agency Department of New York Life from 1996 to March
1999. Managing Partner of Dallas General Office of
New York Life from 1994 to 1996.
</TABLE>
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<PAGE> 45
<TABLE>
<CAPTION>
DIRECTORS POSITIONS DURING LAST FIVE YEARS
<S> <C>
Richard M. Kernan, Jr..................... Executive Vice President and Chief Investment Officer
of New York Life from March 1991 to date.
George J. Trapp........................... Executive Vice President of New York Life from June
1995 to date and Corporate Secretary of New York Life
from November 1995 to date; Senior Vice President of
New York Life from 1991 until June 1995. Member of
the Executive Management Committee of New York Life
since 1994.
Frank M. Boccio........................... Senior Vice President in charge of Individual Policy
Services Department of New York Life since July 1995;
Vice President of New York Life from 1994 to July
1995.
Michael G. Gallo.......................... Senior Vice President in charge of the Individual
Life Department of New York Life from July 1995 to
date; Senior Vice President -- Northeastern Agencies
from February 1994 to July 1995; Vice President prior
thereto. Senior Vice President of NYLIAC from August
1995 to date.
Solomon Goldfinger........................ Senior Vice President, Chief Financial Officer in
charge of the Financial Management Department and
Chief of Staff, Life & Annuity of New York Life from
July 1995 to date; Senior Vice President in charge of
the Individual Life Department prior thereto. Senior
Vice President of NYLIAC from April 1992 to date.
Robert D. Rock............................ Senior Vice President in charge of the Individual
Annuity Department of New York Life from March 1992
to date; Vice President prior thereto. Senior Vice
President of NYLIAC from April 1992 to date.
<CAPTION>
OFFICERS POSITIONS DURING LAST FIVE YEARS
<S> <C>
Gary E. Wendlandt......................... Chairman and Chief Executive Officer of New York Life
Investment Management from December 1999 to date.
Executive Vice President of NYLIAC from March 2000 to
date. Executive Vice President and Chief Investment
Officer of MassMutual Life Insurance Company, June
1992 to April 1999.
</TABLE>
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<PAGE> 46
<TABLE>
<CAPTION>
OFFICERS POSITIONS DURING LAST FIVE YEARS
<S> <C>
Jay S. Calhoun, III....................... Senior Vice President and Treasurer of New York Life
from March 1997 to date; Vice President and Treasurer
from November 1992 to March 1997; Corporate Vice
President prior thereto. Senior Vice President and
Treasurer of NYLIAC from May 1997 to date; Vice
President and Treasurer of NYLIAC from January 1993
to May 1997.
Frank J. Ollari........................... Senior Vice President in charge of the Real Estate
Department of New York Life from October 1989 to
date. Senior Vice President of NYLIAC from April 1992
to date.
Richard C. Schwartz....................... Senior Vice President of New York Life from March
1998 to date. Senior Vice President of NYLIAC from
March 2000 to date. Vice President of New York Life
from 1993.
Stephen N. Steinig........................ Senior Vice President and Chief Actuary of New York
Life from February 1994 to date; Chief Actuary and
Controller prior thereto. Senior Vice President and
Chief Actuary of NYLIAC from May 1991 to date.
John A. Cullen............................ Vice President and Deputy Controller of New York Life
from November 1999 to date; Vice President prior
thereto. Vice President and Controller of NYLIAC from
December 1999 to date; Vice President and Assistant
Controller prior thereto.
Joel M. Steinberg......................... Vice President and Actuary of New York Life from
March 1998 to date; Corporate Vice President and
Actuary from March 1996 to March 1998. Actuary prior
to March 1996. Vice President and Actuary of NYLIAC
from December 1999 to date.
</TABLE>
DISTRIBUTION OF THE POLICIES
NYLIFE Distributors Inc. ("NYLIFE Distributors"), 51 Madison Avenue, New
York, New York 10010, is the principal underwriter and the distributor of the
policies. It is an indirect wholly-owned subsidiary of New York Life. The
maximum commission typically paid to broker-dealers who have entered into dealer
agreements with NYLIFE Distributors is 6.0%. A portion of this amount will be
paid as commissions to registered representatives. Any sales representative or
employee will have been qualified to sell variable life insurance Policies under
applicable federal and state laws. Each broker-dealer is registered with the SEC
under the Securities Exchange Act of 1934 and all are members of the National
Association of Securities Dealers, Inc.
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<PAGE> 47
The maximum sales commission payable to agents, independent registered
insurance brokers, and other registered broker-dealers is 6.0% of initial and
3.5% of subsequent premiums.
Broker-dealers or financial institutions are compensated according to a
schedule set forth by NYLIAC Distributors and any applicable rules or
regulations for variable insurance compensation. Compensation is generally based
on premium payments made by Policy Owners. This compensation is usually paid
from the sales charges described in the Prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. NYLIAC Distributors, its affiliates or NYLIAC may also make
compensation arrangements with certain broker-dealers or financial institutions
based on total sales by the broker-dealer or financial institution of insurance
products.
OTHER INFORMATION
Mixed and Shared Funding -- Shares of the Funds may be sold to our other
separate accounts, our insurance company affiliates, and (except for MainStay VP
Series Fund, Inc.) other unaffiliated insurance companies to serve as the
underlying investment for both variable annuity contracts and variable life
insurance policies, a practice known as "mixed and shared funding" ("shared
funding" in the case of MainStay VP Series Fund, Inc.). As a result, there is a
possibility that a material conflict may arise between the interests of Policy
owners, owners of other policies or owners of variable annuity contracts with
values allocated to one or more of these other separate accounts investing in
any one of the Funds. If a material conflict occurs, we will consider what
action may be appropriate, including removing the Fund from the Separate Account
or replacing the Fund with another underlying fund. There are certain risks
associated with mixed and shared funding, as disclosed in the Funds'
prospectuses.
Voting Rights -- We are the legal owners of all Fund shares held in the
Separate Account and we have the right to vote those shares at the Funds'
shareholder meetings. To the extent required by federal securities laws or
regulations, we will:
-- Notify you of any Fund shareholders' meeting if the shares held for
your Policy may be voted.
-- Send proxy materials and a form of instructions that you can use to
tell us how to vote the Fund shares held for your Policy.
-- Arrange for the handling and tallying of proxies received from Policy
Owners.
-- Vote all Fund shares attributable to your Policy according to
instructions received from you, and
-- Vote all Fund shares for which we have not received voting
instructions in the same proportion as shares for which we have
received voting instructions.
If any federal securities laws or regulations, or their present
interpretation, change to permit us to vote Fund shares on our own, we may
decide to do so. You can attend any Shareholder Meeting at which shares held for
your Policy may be voted.
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<PAGE> 48
Administrative Services -- We provide certain services to you in connection
with investment of premiums and commitment of cash values to the Investment
Divisions, which, in turn, invest in the Eligible Portfolios. These services
include, among others, providing information about the Eligible Portfolios. We
receive a service fee from the investment advisers or other service providers of
some of the Funds in return for providing services of this type. Currently, we
receive service fees at annual rates ranging from .10% to .21% of the aggregate
net asset value of the shares of some of the Eligible Portfolios held by the
Investment Divisions.
Underwriting Procedures -- To purchase a Policy you must submit an
application to us. A Policy will be issued only on the lives of insureds age 90
and under who supply evidence of insurability satisfactory to us. Acceptance is
subject to our underwriting rules and we reserve the right to reject an
application for any reason.
ILLUSTRATIONS OF LIFE INSURANCE BENEFITS, CASH VALUES AND CASH SURRENDER
VALUES
The following tables demonstrate how your Policy works. The tables are
based on the age, sex, underwriting class, initial Life Insurance Benefit and
premium as follows:
The tables are for a Policy issued to a male with preferred underwriting
class of issue age 55, with an initial single premium of $XXXX and an initial
Face Amount of $Y. It assumes that 100% of the GSP is allocated to purchase
accumulation units.
The tables show how the Death Benefit, cash value and cash surrender value
would vary over an extended period of time assuming hypothetical gross rates of
return equivalent to a constant annual rate of 0%, 6% or 12%. The tables will
assist in the comparison of the Death Benefit, cash value and cash surrender
value of the Policy with other variable life insurance plans.
The Death Benefit, cash value and cash surrender value for a Policy would
be different from the amounts shown if the actual gross rates of return averaged
0%, 6% or 12%, but varied above and below those averages for the period. They
would also be different depending on the allocation of the cash value among the
Investment Divisions of the Separate Account and the Fixed Account, if the
actual gross rate of return for all Investment Divisions averaged 0%, 6% or 12%,
but varied above or below that average for individual Investment Divisions. They
would also differ if any Policy loans or partial withdrawals were made.
The first table reflects all charges under the Policy and assumes that the
cost of insurance charges are based on our current cost of insurance rates and
reflects the deduction of all current charges from planned premium and the cash
value. It also reflects a daily mortality and expense risk charge assessed
against the Separate Account equal to an annual rate of 0.50% (on a current
basis) of the assets in the Separate Account and a daily asset based
administrative charge assessed against the Separate Account on the assets in
each Investment Division attributable to the Policies.
The second table reflects all charges under the Policy and assumes that the
cost of insurance charges are based on our guaranteed maximum cost of insurance
rates and reflects the deduction of all guaranteed maximum charges from planned
premium and the cash value. It also reflects a daily mortality and expense risk
charge assessed against the Separate Account equal to an annual rate of 0.80%
(on a guaranteed basis) of the assets in the Separate Account and a daily asset
based administrative charge
42
<PAGE> 49
assessed against the Separate Account on the assets in each Investment Division
attributable to the Policies.
The tables also reflect total assumed investment advisory fees together
with the expenses incurred by the Funds of 0.75% of the average daily net assets
of the Funds. This total is based upon (a) 0.46% of average daily net assets,
which is an average of the management fees of each Investment Division; (b)
0.14% of average daily net assets of the Funds which is an average of actual
administrative fees for each Investment Division; and (c) 0.15% of average daily
net assets of the Funds which is an average of the other expenses after expense
reimbursement for each Investment Division.
"Other Expenses" and "Total Fund Annual Expenses" for the MainStay VP
American Century Income & Growth, MainStay VP Dreyfus Large Company Value and
MainStay VP Eagle Asset Management Growth Equity Portfolios reflect an expense
reimbursement agreement that ended December 31, 1999 limiting "Other Expenses"
to 0.15% annually. In the absence of the expense reimbursement arrangement, the
"Total Fund Annual Expenses" would have been 0.92%, 1.00% and 0.87% for the
MainStay VP American Century Income & Growth, MainStay VP Dreyfus Large Company
Value and MainStay VP Eagle Asset Management Growth Equity Portfolios,
respectively.
For the Calvert Social Balanced Portfolio, "Other Expenses" reflect an
indirect fee. Net fund operating expenses after reductions for fees paid
indirectly would be 0.86%.
A portion of the brokerage commissions that the Fidelity VIP II Contrafund
and Fidelity VIP Equity Income Portfolios pay was used to reduce the Portfolios'
expenses. In addition, these Portfolios have entered into arrangements with
their custodian whereby credits realized as a result of uninvested cash balances
were used to reduce custodial expenses. Including these reductions, the "Total
Fund Annual Expenses" would have been 0.66% for the Fidelity VIP II Contrafund
Portfolio and 0.57% for the Fidelity VIP Equity-Income Portfolio.
Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for the Janus Aspen
Series Worldwide Growth and Janus Aspen Series Balanced Portfolios. All expenses
are shown without the effect of expense offset arrangements.
Morgan Stanley Asset Investment Management has voluntarily waived receipt
of its "Advisory Fees" and agreed to reimburse the Portfolio, if necessary, to
the extent that the "Total Fund Annual Expenses" of the Portfolio exceed 1.75%
of average daily net assets. However, Morgan Stanley has reflected under "Other
Expenses" the Portfolio's interest and foreign tax expenses incurred in 1999
which were equal to 0.04% of the Portfolio's average daily net assets. The fee
waivers and reimbursements described above may be terminated by Morgan Stanley
at any time without notice. Absent such reductions, it is estimated that
"Advisory Fees", "Administration Fees" and "Total Fund Annual Expenses" would be
1.25%, 0.25% and 2.62%, respectively.
Taking into account the assumed charges for mortality and expense risks and
administrative fees in the Separate Account and the average investment advisory
fees and expenses of the Funds, the gross rates of return of 0%, 6% and 12%
would correspond to illustrated net investment returns of: -1.25%, 4.68% and
10.60%, respectively, based on the current charge for mortality and expense
risks, and -1.54%,
43
<PAGE> 50
4.36% and 10.27%, respectively, based on the guaranteed maximum charge for
mortality and expense risks.
The actual investment advisory fees and expenses may be more or less than
the amounts illustrated and will depend on the allocations made by the Policy
owner.
The second column of each table shows the amount which would accumulate if
an amount equal to the planned premiums were invested and earned interest, after
taxes, at 5% per year, compounded annually.
NYLIAC will furnish upon request a comparable illustration using the age,
sex and underwriting class of the insured for any initial Life Insurance Benefit
and premium requested. We will furnish an illustration assuming current Policy
charges and current cost of insurance rates and maximum charges and rates.
44
<PAGE> 51
FINANCIAL STATEMENTS
[TO BE INSERTED]
45
<PAGE> 52
APPENDIX A
ILLUSTRATION
[TO BE INSERTED]
46
<PAGE> 53
APPENDIX B
VARIATIONS BY JURISDICTION
[TO BE INSERTED]
47
<PAGE> 54
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.
RULE 484 UNDERTAKING
Reference is made to Article VIII of the Depositor's By-Laws.
New York Life maintains Directors and Officers Liability/Company
Reimbursement ("D&O") insurance which covers directors, officers and trustees of
New York Life, its subsidiaries, and its subsidiaries and certain affiliates
including the Depositor while acting in their capacity as such. The total annual
aggregate of D&O coverage is $150 million applicable to all insureds under the
D&O policies. There is no assurance that such coverage will be maintained by New
York Life or for the Depositor in the future as, in the past, there have been
large variances in the availability of D&O insurance for financial institutions.
Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor
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 Depositor of expenses incurred
or paid by a director, officer or controlling person of the Depositor 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 Depositor 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.
REPRESENTATION AS TO THE REASONABLENESS OF AGGREGATE FEES AND CHARGES
New York Life Insurance and Annuity Corporation ("NYLIAC"), the
sponsoring insurance company of the NYLIAC Variable Universal Life Separate
Account-I, hereby represents that the fees and charges deducted under the
Single Premium Variable Universal Life Insurance Policies are reasonable in
relation to the services rendered, the expenses expected to be incurred and the
risks assumed by NYLIAC.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The prospectus consisting of 47 pages.
The undertaking to file reports.
The undertaking pursuant to Rule 484.
II-1
<PAGE> 55
The representation as to the reasonableness of aggregate fees and charges.
The signatures.
Written consents of the following persons (to be filed by amendment):
(a) Thomas F. English, Esq.
(b) Michael Fong, Associate Actuary
(c) PricewaterhouseCoopers LLP
The following exhibits:
1. The following exhibits correspond to those required by paragraph A of the
instructions as to exhibits in Form N-8B- 2:
(1) Resolution of the Board of Directors of NYLIAC establishing
the Separate Account - Previously filed as Exhibit (1) to
Registrant's initial Registration Statement on Form S-6,
re-filed in accordance with Regulation S-T, 17 CFR 232.102(e)
as Exhibit (1) to Registrant's Post-Effective Amendment No. 4
on Form S-6, (File No. 64410), filed 4/25/97 and incorporated
herein by reference.
(2) Not applicable.
(3)(a)(1) Distribution Agreement between NYLIFE Securities Inc. and
NYLIAC - Previously filed as Exhibit (3)(a) to Post-Effective
Amendment No. 1 to the registration statement on Form S-6 for
NYLIAC MFA Separate Account-I (File No. 2-86084), re-filed in
accordance with Regulation S-T, 17 CFR 232.102(e) as Exhibit
(3)(a)(1) to Registrant's Post-Effective Amendment No. 4 on
Form S-6, (File No. 64410), filed 4/25/97 and incorporated
herein by reference.
(3)(a)(2) Distribution Agreement between NYLIFE Distributors Inc. and
NYLIAC - Previously filed as Exhibit (3)(a)(2) to Registrant's
Post-Effective Amendment No. 3 on Form S-6 (File No. 64410),
filed 4/17/96 and incorporated herein by reference.
(3)(b) Not applicable.
(3)(c) Not applicable.
(4) Not applicable.
(5) Form of Policy for Single Premium Variable Universal Life
Insurance Policies - filed herewith.
(5)(a) Living Benefits Rider - Previously filed in accordance with
Regulation S-T, 17 CFR 232.102(e) as Exhibit (5)(h) to
Registrant's Pre-Effective Amendment No. 1 on Form S-6 (File
No. 333-79309), filed 7/23/99 and incorporated herein by
reference.
(5)(b) Spouse's Paid-Up Insurance Purchase Option Rider - Previously
filed in accordance with Regulation S-T, 17 CFR 232.102(e) as
Exhibit (5)(j) to Registrant's Pre-Effective Amendment No. 1
on Form S-6 (File No. 333-79309), filed 7/23/99 and
incorporated herein by reference.
(6)(a) Certificate of Incorporation of NYLIAC - Previously filed as
Exhibit (6)(a) to the registration statement on Form S-6 for
NYLIAC MFA Separate Account-I (File No. 2-86083), re-filed in
accordance with Regulation S-T, 17 CFR 232.102(e) as Exhibit
(6)(a) to the initial registration statement on Form S-6 for
NYLIAC Corporate Sponsored Variable Universal Life Separate
Account-I (File No. 333-07617), filed 7/3/96 and incorporated
herein by reference.
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<PAGE> 56
(6)(b)(1) By-Laws of NYLIAC - Previously filed as Exhibit (6)(b) to the
registration statement on Form S-6 for NYLIAC MFA Separate
Account-I (File No. 2-86083), re-filed in accordance with
Regulation S-T, 17 CFR 232.102(e) as Exhibit (6)(b) to the
initial registration statement on Form S-6 for NYLIAC
Corporate Sponsored Variable Universal Life Separate Account-I
(File No. 333-07617), filed 7/3/96 and incorporated herein by
reference.
(6)(b)(2) Amendments to By-Laws of NYLIAC - Previously filed in
accordance with Regulation S-T, 17 CFR 232.102(e) as
Exhibit (6)(b) to Pre-Effective Amendment No. 1 to the
registration statement on Form S-6 for NYLIAC Variable
Universal Life Separate Account-I (File No. 333-39157),
filed 4/3/98 and incorporated herein by reference.
(7) Not applicable.
(8) Not applicable.
(9)(a) Stock Sale Agreement between NYLIAC and MainStay VP Series
Fund, Inc. (formerly New York Life MFA Series Fund, Inc.) -
Previously filed as Exhibit (9) to Registrant's Pre-Effective
Amendment No. 1 on Form S-6, re-filed as Exhibit (9)(a) to
Pre-Effective Amendment No. 1 to the registration statement on
Form S-6 for NYLIAC Corporate Sponsored Variable Universal
Life Separate Account-I (File No. 333-07617), filed 1/2/97 and
incorporated herein by reference.
(9)(b) Powers of Attorney for the Directors and Officers of NYLIAC -
Previously filed in accordance with Regulation S-T, 17 CFR
232.102(e) as Exhibit (9)(c) to Pre-Effective Amendment No. 2
to the registration statement on Form S-6 for NYLIAC Corporate
Sponsored Variable Universal Life Separate Account-I (File No.
333-07617), filed 4/25/97 for the following, and incorporated
herein by reference:
Jay S. Calhoun, Vice President, Treasurer and Director
(Principal Financial Officer)
Richard M. Kernan, Jr., Director
Robert D. Rock, Senior Vice President and Director
Frederick J. Sievert, President and Director
(Principal Executive Officer)
Stephen N. Steinig, Senior Vice President, Chief
Actuary and Director
Seymour Sternberg, Director
(9)(c) Power of Attorney for Maryann L. Ingenito, Vice President and
Controller (Principal Accounting Officer) - Previously filed
in accordance with Regulation S-T, 17 CFR 232.102(e) as
Exhibit (9)(d) to Pre-Effective Amendment No. 1 to the
registration statement on Form S-6 for NYLIAC Corporate
Sponsored Variable Universal Life Separate Account-I (File No.
333-07617), filed 1/2/97 and incorporated herein by reference.
(9)(d) Power of Attorney for Howard I. Atkins, Executive Vice
President (Principal Financial Officer) - Previously filed as
Exhibit 8(d) to Registrant's Pre-Effective Amendment No. 1 on
Form S-6 (File No. 333-39157), filed 4/3/98 and incorporated
herein by reference.
(9)(e) Memorandum describing NYLIAC's issuance, transfer and
redemption procedures for the Policies - Previously filed as
Exhibit (11) to Registrant's Pre-Effective Amendment No. 1 on
Form S-6, refiled in accordance with Regulation S-T, 17 CFR
232.102(e) as Exhibit (9)(d) to Registrant's Post-Effective
Amendment No. 4 on Form S-6 (File No. 33-64410), filed 4/25/97
and incorporated herein by reference.
(9)(f) Participation Agreement among Acacia Capital Corporation,
Calvert Asset Management Company, Inc. and NYLIAC, as amended
- Previously filed in accordance with Regulation S-T, 17 CFR
232.102(e) as Exhibit (9)(b)(1) to Pre-Effective Amendment No.
1 to the registration statement on Form S-6 for NYLIAC
Corporate Sponsored Variable Universal Life Separate Account-I
(File No. 333-07617), filed 1/2/97 and incorporated herein by
reference.
II-3
<PAGE> 57
(9)(g) Participation Agreement among The Alger American Fund, Fred
Alger and Company, Incorporated and NYLIAC - Previously filed
in accordance with Regulation S-T, 17 CFR 232.102(e) as
Exhibit (9)(b)(2) to Pre-Effective Amendment No. 1 to the
registration statement on Form S-6 for NYLIAC Corporate
Sponsored Variable Universal Life Separate Account-I (File No.
333-07617), filed 1/2/97 and incorporated herein by reference.
(9)(h) Participation Agreement between Janus Aspen Series and NYLIAC
- Previously filed in accordance with Regulation S-T, 17 CFR
232.102(e) as Exhibit (9)(b)(3) to Pre-Effective Amendment No.
1 to the registration statement on Form S-6 for NYLIAC
Corporate Sponsored Variable Universal Life Separate Account-I
(File No. 333-07617), filed 1/2/97 and incorporated herein by
reference.
(9)(i) Participation Agreement among Morgan Stanley Universal Funds,
Inc., Morgan Stanley Asset Management Inc. and NYLIAC -
Previously filed in accordance with Regulation S-T, 17 CFR
232.102(e) as Exhibit (9)(b)(4) to Pre-Effective Amendment No.
1 to the registration statement on Form S-6 for NYLIAC
Corporate Sponsored Variable Universal Life Separate Account-I
(File No. 333-07617), filed 1/2/97 and incorporated herein by
reference.
(9)(j) Participation Agreement among Variable Insurance Products
Fund, Fidelity Distributors Corporation and NYLIAC -
Previously filed in accordance with Regulation S-T, 17 CFR
232.102(e) as Exhibit (9)(b)(5) to Pre-Effective Amendment No.
1 to the registration statement on Form S-6 for NYLIAC
Corporate Sponsored Variable Universal Life Separate Account-I
(File No. 333-07617), filed 1/2/97 and incorporated herein by
reference.
(9)(k) Participation Agreement among Variable Insurance Products Fund
II, Fidelity Distributors Corporation and NYLIAC - Previously
filed in accordance with Regulation S-T, 17 CFR 232.102(e) as
Exhibit (9)(b)(6) to Pre-Effective Amendment No. 1 to the
registration statement on Form S-6 for NYLIAC Corporate
Sponsored Variable Universal Life Separate Account-I (File No.
333-07617), filed 1/2/97 and incorporated herein by reference.
(9)(l) Power of Attorney for Certain Directors of NYLIAC -
Previously filed as Exhibit 10(e) to Post-Effective Amendment
No. 6 to the registration statement on Form N-4 for NYLIAC
Variable Annuity Separate Account - III (File No. 33-87382),
filed 2/18/99 and incorporated herein by reference for the
following:
George J. Trapp, Director
Frank M. Boccio, Director
Phillip J. Hildebrand, Director
Michael G. Gallo, Director
Solomon Goldfinger, Director
Howard I. Atkins, Director
(9)(m) Power of Attorney for John A. Cullen, Vice President and
Controller (Principal Accounting Officer) - Previously filed
in accordance with Regulation S-T, 17 CFR 232.102 (e) as
Exhibit (10)(f) to Post-Effective Amendment No. 21 to the
registration statement on Form N-4 for NYLIAC MFA Separate
Account - I (File No. 2-86083), filed 4/13/00 and incorporated
herein by reference.
(9)(n) Participation Agreement among T. Rowe Price Equity Series,
Inc., T. Rowe Price Associates, Inc. and NYLIAC - Previously
filed in accordance with Regulation S-T, 17 CFR 232.102(e)
as Exhibit (8)(h) to Post-Effective Amendment No. 7 to the
registration statement on Form N-4 for NYLIAC Variable
Annuity Separate Account - I (File No. 33-53342),
filed 4/16/98 and incorporated herein by reference.
(9)(o) Power of Attorney for Gary G. Benanav, Director and Executive
Vice President - Filed herewith.
(10) Form of Application - Filed herewith.
2. Opinion and Consent of Thomas F. English, Esq. - To be filed
by amendment.
3. Not applicable.
4. Not applicable.
5. Not applicable.
6. Opinion and Consent of Michael Fong, Associate
Actuary - To be filed by amendment.
7. Consent of PricewaterhouseCoopers LLP - To be filed by
amendment.
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<PAGE> 58
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
NYLIAC Variable Universal Life Separate Account-I, certifies that it has duly
caused this Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City and State of New York
on the 11th day of October, 2000.
NYLIAC VARIABLE UNIVERSAL LIFE
SEPARATE ACCOUNT-I
(Registrant)
By /s/ MELVIN J. FEINBERG
-------------------------------------
Melvin J. Feinberg
Vice President and Actuary
NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
(Depositor)
By /s/ MELVIN J. FEINBERG
-------------------------------------
Melvin J. Feinberg
Vice President and Actuary
As required by the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the date indicated.
Howard I. Atkins* Executive Vice President and Director
(Principal Financial Officer)
Gary G. Benanav** Executive Vice President and Director
Frank M. Boccio* Director
John A. Cullen* Vice President and Controller (Principal
Accounting Officer)
Michael G. Gallo* Director
Solomon Goldfinger* Director
Phillip J. Hildebrand* Director
Richard M. Kernan, Jr.* Director
Robert D. Rock* Senior Vice President and Director
Frederick J. Sievert* President and Director (Principal Executive
Officer)
Seymour Sternberg* Director
George J. Trapp* Director
*By /s/ MELVIN J. FEINBERG
-------------------------------------
Melvin J. Feinberg
Attorney-in-Fact
October 11, 2000
* Pursuant to Powers of Attorney previously filed.
** Pursuant to a Power of Attorney filed herewith.
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<PAGE> 59
EXHIBIT INDEX
Exhibit
Number Description
------ -----------
(5) Form of policy for Single Premium Variable Universal Life
Insurance Policies
(9)(o) Power of Attorney for Gary G. Benanav
(10) Form of Application for Single Premium Variable Universal
Life Insurance Policies
