As filed with the Securities and Exchange Commission on December 23 , 1998
Registration No. 33-89848
811-8190
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 o
Pre-Effective Amendment No. o
Post-Effective Amendment No. 5 x
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 x
Amendment No. 11
UNITED OF OMAHA SEPARATE ACCOUNT C
(Exact Name of Registrant)
UNITED OF OMAHA LIFE INSURANCE COMPANY
(Name of Depositor)
Mutual of Omaha Plaza, Omaha, Nebraska, 68175
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code
(402) 351-5087
Name and Address of Agent for Service:
Kenneth W. Reitz, Esquire
Mutual of Omaha Companies
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska, 68175-1008
Internet: [email protected]
It is proposed that this filing will become effective (check appropriate
box):
o immediately upon filing pursuant to paragraph (b)
o on ___________ pursuant to paragraph (b)
o 60 days after filing pursuant to paragraph (a)(i)
x on 80th day after filing pursuant to paragraph (a)(i)
If appropriate, check the following box:
o This Post-Effective Amendment designates a new effective date for
a previously filed Post-Effective Amendment.
<PAGE>
CROSS REFERENCE SHEET
Pursuant to Rule 495
Showing Location in Part A (Prospectus) and
Part B (Statement of Additional Information)
of Registration Statement of Information Required by Form N-4
PART A
Item of Form N-4 Prospectus Caption
- ------------------ -----------------
1. Cover Page................................ Cover Page
2. Definitions............................... Definitions
3. Synopsis.................................. Summary
4. Condensed Financial Information........... Financial Statements
5. General
(a) Depositor................................. About Us
(b) Registrant................................ Variable Investment Options
(c) Portfolio Company......................... Variable Investment Options
(d) Fund Prospectus........................... Variable Investment Options
(e) Voting Rights............................. Voting Rights
6. Deductions and Expenses
(a) General................................... Expenses
(b) Sales Load %.............................. Withdrawal Charge
(c) Special Purchase Plan..................... N/A
(d) Commissions............................... Distributor of the Policies
(e) Expenses - Registrant..................... N/A
(f) Fund Expenses............................. Other Expenses: Investment
Advisory Fees
(g) Organizational Expenses................... N/A
7. Policies
(a) Persons with Rights....................... Basic Policy Provisions;
Policy Distributions; Voting
Rights
(b) (i) Allocation of Premium
Payments............................ Summary: Purchase Payment
Flow Chart; Investment
Options; Dollar Cost
Averaging; Systematic
Transfer Enrollment Program
(ii) Transfers........................... Transfers
(iii) Exchanges........................... N/A
(c) Changes................................... Adding, Deleting or
Substituting Variable
Investments; Selecting an
Annuity Payout Option;
Annuity Starting Date
(d) Inquiries................................. Miscellaneous: Do You Have
Questions?
8. Annuity Period............................ Annuity Payout Options
9. Death Benefit............................. Death Benefits
10. Purchase and Policy Values
(a) Purchases................................. Policy Application and
Issuance
(b) Valuation................................. Accumulation Value
(c) Daily Calculation......................... Accumulation Value
(d) Underwriter............................... Distributor of the Policies
<PAGE>
11. Redemptions
(a) By Owners................................. Withdrawals
By Annuitant.............................. N/A
(b) Check Delay............................... Policy Application and
Issuance
(c) Lapse..................................... N/A
(d) Free Look................................. Summary
12. Taxes..................................... Federal Tax Matters
13. Legal Proceedings......................... Legal Proceedings
14. Table of Contents for the
Statement of Statement of Additional
Additional Information.................... Information
PART B
Item of Form N-4 Statement of Additional
Information Caption
15. Cover Page................................ Cover Page
16. Table of Contents......................... Table of Contents
17. General Information
and History.............................. (Prospectus) About Us
18. Services
(a) Fees and Expenses
of Registrant............................. N/A
(b) Management Policies....................... N/A
(c) Custodian................................. Custody of Assets
Independent
Auditors ................................ Financial Statements
(d) Assets of Registrant...................... Custody of Assets
(e) Affiliated Person......................... N/A
(f) Principal Underwriter..................... Distribution of the Policies
19. Purchase of Securities
Being Offered................................. Distribution of the Policies
Offering Sales Load........................... N/A
20. Underwriters.............................. Distribution of the Policies;
(Prospectus) Distributor of
the Policies
21. Calculation of Performance Data
Calculation of Yields and Total Returns; Other Performance Data
22. Annuity Payments.......................... (Prospectus) Annuity Payments
23. Financial Statements...................... Financial Statements
<PAGE>
PART C -- OTHER INFORMATION
Item of Form N-4 Part C Caption
24. Financial Statements
and Exhibits.............................. Financial Statements and
Exhibits
(a) Financial Statements...................... Financial Statements
(b) Exhibits.................................. Exhibits
25. Directors and Officers of................. Directors and Officers of the
the Depositor............................. Depositor
26. Persons Controlled By or Under Common Control Persons Controlled By or
with the Depositor or Registrant ......... Under Common
Control with the Depositor or
Registrant
27. Number of Policy Owners................... Number of Policy Owners
28. Indemnification........................... Indemnification
29. Principal Underwriters.................... Principal Underwriters
30. Location of Accounts
and Records................................... Location of Accounts and
Records
31. Management Services....................... Management Services
32. Undertakings.............................. Undertakings
Signature Page................................ Signatures
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] PROSPECTUS: Dated _______, 1999
United of Omaha SERIES V ULTRANNUITY
A Mutual of Omaha Company Flexible Payment
Variable Deferred Annuity Policy
- --------------------------------------------------------------------------------
The SERIES V ULTRANNUITY (the "Policy") is offered by United of Omaha Life
Insurance Company ("we, us, our, United of Omaha"). The Policy is designed to
aid you (the Owner, investor) in your long-term financial planning by providing
for the accumulation of capital on a tax-deferred basis.
To purchase a Policy, you must invest at least $5,000. Further investment
is optional, but must be at least $500 each time.
<TABLE>
<CAPTION>
<S> <C>
Investment options offered
through the Policy include
25 variable options (where
you have the investment
risk) from:
The investment portfolios offered through the Alger American Fund
Policy, while they may have the same or similar Federated's Insurance Management Series
names of retail mutual funds, are not the same Fidelity's VIP Fund and VIP Fund II
as those funds. By law, the Policy may not offer MFS Variable Insurance Trust
those retail mutual funds, so it offers funds Morgan Stanley Universal Funds
whose names and characteristics may be similar Pioneer Variable Contracts Trust
to them but whose performance is not necessarily Scudder Variable Life Investment Fund
related to the retail funds. The portfolios T.Rowe Price Equity Series, Fixed Income Series
are described in separate prospectuses that and Internation Series
accompany this Prospectus. and 2 fixed options (where we have the investment
risk) from:
United of Omaha
</TABLE>
The variable investment options are not direct investments in mutual fund
shares, but are purchases of Subaccount shares of UNITED OF OMAHA SEPARATE
ACCOUNT C (THE "VARIABLE ACCOUNT"), which in turn invests your Purchase Payments
in the investment options pursuant to your directions. You must be given copies
of the prospectus for each variable investment option when or before you receive
this Prospectus.
The Policy is an annuity, so unlike other kinds of investments (retail
mutual funds, certificates of deposit, stocks, etc.) you may have the Policy pay
your investment back to you in installments for your entire life or for some
other period. Prior to the Annuity Starting Date, you may transfer Policy value
among the investment options. Restrictions may apply, especially on transfers
out of fixed options. You may also withdraw all or part of the Policy's value at
any time; however, withdrawals may be taxable, subject to a Withdrawal Charge
and/or a tax penalty, and withdrawals from any fixed options may be delayed.
PLEASE READ THIS PROSPECTUS CAREFULLY.
IT PROVIDES INFORMATION YOU SHOULD
CONSIDER BEFORE INVESTING IN A POLICY.
KEEP THIS PROSPECTUS FOR FUTURE
REFERENCE. IT, AND THE STATEMENT OF
ADDITIONAL INFORMATION, GENERALLY DESCRIBE
ONLY THE POLICY AND VARIABLE INVESTMENT
OPTIONS, EXCEPT WHEN THE FIXED OPTIONS
ARE SPECIFICALLY MENTIONED.
A Statement of Additional Information about us and the Policy, with the
same date as the Prospectus, is on file with the Securities and Exchange
Commission ("SEC") and is incorporated into this Prospectus by reference. You
may obtain a copy by writing or calling us, or you may access it in our
registration on the SEC's Web site (http://www.sec.gov). The Table of Contents
for the Statement of Additional Information is at the end of this Prospectus.
The Policy is a security. Although we register this Prospectus with the SEC, the
SEC does not pass upon its accuracy or adequacy, nor does the SEC approve or
disapprove the Policy. This Prospectus may only be used to offer the Policy
where the Policy may lawfully be sold. No one is authorized to give information
or make representations about the Policy that isn't in the Prospectus; if anyone
does so, you should not rely upon it as being accurate or adequate.
AN INTEREST IN THE POLICY IS NOT A DEPOSIT OR OBLIGATION OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK. THE POLICY IS NOT
FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
THE POLICY INVOLVES RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
CONTENTS
Page(s)
----------
DEFINITIONS 3
---------------------------------------------------------- ----------
SUMMARY 4-9
Comparison to Other Policies and Investments
How the Policy Operates
Summary of Expense Charges
Examples of Expenses Effect on a Policy
---------------------------------------------------------- ----------
FINANCIAL STATEMENTS 9-12
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ABOUT US 12
---------------------------------------------------------- ----------
INVESTMENT OPTIONS 12-19
Variable Investment Options
Fixed Investment Options
Systematic Transfer Account
Fixed Account
Transfers
Dollar Cost Averaging
STEP Program
Asset Allocation Program
Rebalancing
---------------------------------------------------------- ----------
BASIC POLICY PROVISIONS 19-22
Policy Application and Issuance
Accumulation Value
Telephone Transactions
Death of Annuitant
Minor Owner or Beneficiary
Policy Termination
---------------------------------------------------------- ----------
EXPENSES 22-25
Withdrawal Charge and Waivers
Mortality and Expense Risk Charge
Administrative Charges
Enhanced Death Benefit Charges
Transfer Fee
Premium Tax Charge
Other Expenses
---------------------------------------------------------- ----------
POLICY DISTRIBUTIONS 25-29
Withdrawals
Annuity Payments
Death Benefits (Standard, Enhanced, Accidental, IRS
required)
---------------------------------------------------------- ----------
FEDERAL TAX MATTERS 29-32
Taxation of Annuities
Qualified Plan Uses of the Policy
---------------------------------------------------------- ----------
MISCELLANEOUS 32
Distributor of the Policies
Voting Rights
Year 2000 Issues
Legal Proceedings
Do You Have Questions?
---------------------------------------------------------- ----------
Statement of Additional Information Table of Contents 33
2
<PAGE>
- -----------------------------------------------------------
DEFINITIONS
Accumulation Units are an accounting unit of measure used to calculate the
Accumulation Value of the Variable Account.
Accumulation Value is the dollar value as of any Valuation Date of all amounts
accumulated under the Policy.
Anniversary Value is the Accumulation Value on a Policy anniversary.
Annuitant is the person on whose life annuity payments involving life
contingencies are based. The Annuitant only has rights under the Policy if the
Annuitant is also the Owner, and then has Ownership rights only.
Annuity Purchase Value is an amount equal to the Accumulation Value for the
Valuation Period which ends immediately preceding the Annuity Starting Date
reduced by any Withdrawal Charge, and any charge for applicable premium or
similar taxes.
Annuity Starting Date is the date when annuity payments are to begin. The latest
Annuity Starting Date permitted is the Annuitant's 95th birthday. (85th birthday
in Pennsylvania.)
Average Death Benefit Amount -- The mean of the death benefit amount on the most
recent Policy anniversary and the death benefit amount on the immediately
preceding Policy anniversary. The Average Death Benefit Amount is the basis used
to calculate the Enhanced Death Benefit Charge under Policies issued with the
Elective Death Benefit Amendment.
Beneficiary is the person(s) or other legal entity who receives Policy benefits,
if any, upon your death.
Cash Surrender Value is the Accumulation Value less any Withdrawal Charge, any
Policy Fee, and any premium tax charge not previously deducted, and, if the
Enhanced Death Benefit is elected, the Enhanced Death Benefit Charge.
Date of Issue is the date the Policy is issued, as shown on the Policy Data
Page.
Due Proof of Death is a certified copy of a death certificate, a certified copy
of a decree of a court of competent jurisdiction as to the finding of death, a
written statement by the attending physician, or any other proof satisfactory to
United of Omaha will constitute Due Proof of Death.
Fixed Account is an account consisting of general account assets of ours.
Payee is the person who receives annuity payments under the Policy.
Owner is the person(s) who may exercise all rights and privileges under the
Policy. If there are joint Owners, the signatures of both Owners are needed to
exercise rights under the Policy. The Owner may change the ownership of the
Policy or pledge it as collateral by assigning it.
Policy Year -- A Policy Year begins on the Date of Issue and each Policy
anniversary.
SEC is the Security Exchange Commission, the federal governmental agency
regulating securities.
Series Funds are diversified, open-end investment management companies in which
the Variable Account invests.
Subaccount is a segregated account within the Variable Account investing in a
specified portfolio of one of the Series Funds.
Telephone Transaction are transactions you may make by telephone based upon
prior Written Notice authorization.
Us, We, Our is United of Omaha Life Insurance Company. All communication to us
regarding your Policy should be sent to United of Omaha, Variable Product
Service, P.O. Box 8430, Omaha, Nebraska 68108-0430. Telephone: 1-800-238-9354.
Valuation Date is each day that the New York Stock Exchange is open for trading.
Valuation Period is the period commencing at the close of business of the New
York Stock Exchange on each Valuation Date and ending at the close of business
for the next succeeding Valuation Date.
Variable Account -- United of Omaha Separate Account C, a separate account
maintained by us in which a portion of our assets has been allocated for the
Policy and certain other policies.
Written Notice or Request -- Written notice, signed by you, that gives us the
information we require and is received at United of Omaha Variable Product
Service, P.O. Box 8430, Omaha, Nebraska 68108-0430.
3
<PAGE>
- -----------------------------------------------------------
SUMMARY
o COMPARISON TO OTHER POLICIES AND INVESTMENTS
COMPARED TO FIXED ANNUITIES. Like fixed-interest annuities, the Policy
offers the ability to accumulate capital on a tax-deferred basis, offers the
ability to have a guaranteed minimum return on your investment (if you choose a
fixed option), allows you to make partial or full withdrawals from your Policy,
and can provide annuity payments for the rest of your life or for some other
period. The Policy is different from fixed-interest annuities in that, to the
extent your capital is invested in variable investment options, the Accumulation
Value will reflect the investment experience of the selected variable investment
options, so you have the investment risk and opportunity, not us.
COMPARED TO MUTUAL FUNDS. The Policy is designed to provide insurance and
annuity protection. Although the underlying investment portfolios to which
Accumulation Value may be allocated invest in securities similar to those in
which mutual funds available directly to the public invest, in many ways the
Policy differs from mutual fund investments. The main differences are:
o The Policy provides a death benefit, a higher elective death benefit, and
an accidental death benefit based on our assumption of an actuarially
calculated risk.
o United of Omaha, not you, owns the investment portfolio's underlying series
fund shares. You own interests in our Subaccounts that invest in series
fund portfolios as directed by you.
o Insurance-related charges not associated with mutual fund investments are
deducted from values of the Policy.
o Federal income tax liability on any earnings is deferred until you receive
a distribution from the Policy. Transfers from one underlying series fund
portfolio to another are accomplished without tax liability under current
law.
o Dividends and capital gains distributed by the investment portfolio's
underlying series funds are automatically reinvested.
o Premature withdrawals are subject to a 10% federal tax penalty. Also,
Policy earnings that would be treated as capital gains in a mutual fund are
treated as ordinary income, although such earnings are exempt from
taxation if received as a death benefit or taxation is deferred until such
earnings are distributed.
o Most states grant you a time period to review your policy and cancel it.
The terms of this "right to examine" period varies by state, and is stated
on the cover of your Policy.
o HOW THE POLICY OPERATES
The following chart shows how the Policy operates. For more information,
refer to specific sections of this Prospectus.
------------------------------------------------------------
PURCHASE PAYMENT FLOW CHART
------------------------------------------------------------
PURCHASE PAYMENTS
o Minimum initial Purchase Payment is
$5,000 ($2,000 if you elect to make
electronic funds transfer payments of at
least $100 per month, or quarterly,
semi-annual or annual payment
equivalents).
o Minimum additional Purchase Payment is $500.
o No Purchase Payments after earlier of the Annuity
Starting Date or your 88th birthday.
------------------------------------------------------------
----------------------------------------------------------------------------
DEDUCTIONS BEFORE ALLOCATING PURCHASE PAYMENTS
None
----------------------------------------------------------------------------
---------------------------------------------------------------------
INVESTMENT OF PURCHASE PAYMENTS
o You direct the allocation of the initial Purchase
Payment and any additional Purchase Payments among 25
Subaccounts of the Variable Account, the Fixed Account
and the Systematic Transfer Account. The Subaccounts
invest in corresponding series funds.
---------------------------------------------------------------------
4
<PAGE>
--------------------------------------------------------------------------
DEDUCTIONS FROM ASSETS
o Daily charges deducted from the net assets in the Variable Account equal
to an annual rate of:
- 1% for our mortality and expense risk;
- 0.2% for our administrative expenses;
- (Optional) 0.35% if the Enhanced Death Benefit is elected
(for Policies issued after 5/1/98; see the Prospectus for Policies
issued before then).
o Annual Policy Fee of $30 Per Year. (Waived if Accumulation Value is more
than $50,000 on the Policy anniversary.)
o $10 transfer fee (first 12 transfers per Year are free).
o Investment advisory fees and fund expenses are deducted from the assets of
each Subaccount.
o Where a State levies premium taxes on the Policy, we will deduct those
taxes from Purchase payments, upon surrender, upon death of any Owner, or
at the Annuity Starting Date. The timing of the levy varies by State.
----------------------------------------------------------------------------
------------------------------------------------------------------------
ACCUMULATION VALUE
o Accumulation Value is equal to the initial Purchase Payment and any
additional Purchase Payments, as adjusted each day the New York
Stock Exchange is open to reflect Subaccounts' investment
experience, charges deducted and other Policy transactions (such as
transfers and partial withdrawals).
o Accumulation Value may vary daily. There is no minimum guaranteed
Accumulation Value.
o Accumulation Value can be transferred among the Subaccounts and the
Fixed Account.
o Dollar cost averaging and asset rebalancing programs are available.
o Accumulation Value is the starting point for calculating certain
values under a Policy, such as the Cash Surrender Value and the
Death Benefit.
------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ACCUMULATION VALUE BENEFITS DEATH BENEFITS
o All or part of the Accumulation Value o Available as a lump sum or
may be withdrawn. Each Policy Year, under a variety of payment
up to 15% of the Accumulation Value as options.
of the date of the first withdrawal
that year may be withdrawn without a o If you die by accident,
Withdrawal Charge. Thereafter, the you receive double the
Withdrawal Charge is calculated death benefit payable if
separately for each Purchase Payment death was not by accident.
withdrawn based on the number of years
elapsed since the Purchase Payment was
made; it is 7% in the first year after a
Purchase Payment is made and then
decreases by 1% in each successive year
to 0% after the seventh year.
o Fixed and variable annuity Payout Options are available.
- --------------------------------------------------------------------------------
5
<PAGE>
o SUMMARY OF EXPENSE CHARGES
Policy Owner Transaction Expenses
o Maximum Withdrawal Charge 7%
(% of each Purchase Payment Surrendered) 1
o Transfer Fee - First 12 Transfers Per Year: NO FEE
- Over 12 Transfers in One Year: $10 each
Variable Account Annual Expenses
(deducted daily to equal this annual % of account value)
o Mortality and Expense Risk Fees 1.00%
o Administrative Expense Charge 0.20%
-----
Total Variable Account Annual Expenses 1.20%
Other Annual Expenses
o Annual Policy Fee $30 Per
(waived if Accumulation Value is greater than Year
$50,000 on Policy Anniversary)
o Current Annual ENHANCED Death Benefit Charge (Optional)
(% of Average Death Benefit Amount) 2 0.35%
FOR MORE DETAILED INFORMATION ABOUT THE POLICY,
PLEASE READ THE REST OF THIS PROSPECTUS AND THE POLICY.
1/ Each Policy Year up to fifteen percent (15%) of the Accumulation Value
as of the date of the first withdrawal that year can be withdrawn
without a Withdrawal Charge. Thereafter, the Withdrawal Charge is
calculated separately for each Purchase Payment withdrawn based on the
number of years elapsed since the Purchase Payment was made; it is 7% in
the first year after a Purchase Payment is made and then decreases by 1%
in each successive year to 0% after the seventh year.
2/ If the Policy has been issued with the Enhanced Death Benefit Amendment,
the Death Benefit Charge will apply. This charge will never exceed 0.35%
of the Average Death Benefit Amount.
6
<PAGE>
Series Fund Annual Expenses(3) Management Other Total Series
(as a percentage of average net assets) Fees Expenses Fund Annual
Expenses
- ------------------------------------------------------------ ------- =========
Portfolio:
Alger American Growth 0.75% 0.04% 0.79%
Alger American Small Capitalization 0.85% 0.04% 0.89%
Federated Prime Money Fund II * 0.30% 0.50% 0.80%
Federated Fund for U.S. Government Securities II * 0.15% 0.65% 0.80%
Fidelity VIP II Asset Manager: Growth *** 0.65% 0.22% 0.87%
Fidelity VIP II Contrafund *** 0.61% 0.13% 0.74%
Fidelity VIP Equity Income *** 0.51% 0.07% 0.58%
Fidelity VIP II Index 500 ** 0.13% 0.15% 0.28%
MFS Emerging Growth 0.75% 0.25% 1.00%
MFS High Income Fund 0.75% 0.25% 1.00%
MFS Research 0.75% 0.25% 1.00%
MFS Value Series 0.75% 0.25% 1.00%
MFS World Government 0.75% 0.25% 1.00%
Morgan Stanley Emerging Markets Equity ** 0% 1.75% 1.75%
Morgan Stanley Fixed Income ** 0% 0.70% 0.70%
Pioneer Capital Growth 0.65% 0.14% 1.79%
Pioneer Real Estate ** .88% 0.37% 1.25%
Scudder Global Discovery **, ***** 0.67% 1.08% 1.75%
Scudder Growth & Income ***, ***** 0.48% 0.22% 0.80%
Scudder International 0.86% 0.17% 1.00%
T. Rowe Price Equity Income **** 0% 0.85% 0.85%
T. Rowe Price International **** 0% 1.05% 1.05%
T. Rowe Price Limited-Term Bond **** 0% 0.70% 0.70%
T. Rowe Price New America Growth **** 0% 0.85% 0.85%
T. Rowe Price Personal Strategy Balanced **** 0% 0.90% 0.90%
==============================================================================
* Both Federated Prime Money Fund II and Federated Fund for U.S. Government
Securities II currently bundle their fees and expenses and limit the total
charge. Absent any fee waiver or expense reimbursement, the total fees and
expenses for each fund would have been 1.00% and 1.25% respectively.
** Without fee waiver or expense reimbursement limits the following funds would
have had the charges set forth below:
Management Other Total
Fees Expenses Expenses
Fidelity VIP II Index 500 0.28% 0.15% 0.43%
Morgan Stanley Emerging
Markets Equity 1.25% 2.87% 4.12%
Morgan Stanley Fixed Income 0.40% 1.31% 1.71%
Pioneer Real Estate 0.88% 0.48% 1.36%
Scudder Global Discovery 0.98% 2.00%***** 2.98%
*** These funds have voluntarily agreed to limit their total annual expenses to
the limits shown below:
Fidelity VIP II Asset Manager: Growth and Fidelity VIP II Contrafund - 1.00%
Fidelity VIP Equity Income and Scudder Growth & Income - 1.50%
**** T. Rowe Price Funds do not itemize management fees and other expenses.
***** Includes .25% 12b-1 fee assessed for payment of distribution
administration expenses.
================================================================================
3/ The fee and expense data regarding each Series Fund, which are fees and
expenses for 1997, was provided to United of Omaha by the Series Fund.
The Series Funds are not affiliated with United of Omaha.
7
<PAGE>
<TABLE>
<CAPTION>
Examples(4) 1. Surrender Policy at 2. Annuitize Policy at 3. Policy is not
An Owner would pay the following end of the time period or the end of the time surrendered and is not
expenses on a $1,000 investment, annuitize an Annuity period and Annuity annuitized
assuming a 5% annual return on Option 4 (Lifetime Option 4 (Lifetime
assets (including the Enhanced Death Income) is NOT chosen Income) IS chosen
Benefit):
Portfolio 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr
- -------------------------------------------- ------ ------ ------ -------- ------ ------ ----- ------- ------ ------ ----- ========
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alger American Growth $83 115 148 260 $83 66 115 260 $21 66 115 260
Alger American Small Capitalization 84 118 153 273 84 69 120 273 22 69 120 273
Federated Prime Money Fund II 83 115 148 262 83 66 116 262 21 66 116 262
Federated Fund for U.S. Government
Securities II 83 115 148 262 83 66 116 262 21 66 116 262
Fidelity VIP II Asset Manager Growth 84 115 152 270 84 66 119 270 21 66 119 270
Fidelity VIP II Contrafund 83 113 148 254 83 64 115 254 20 64 115 254
Fidelity VIP Equity Income 82 109 138 234 82 60 105 234 19 60 105 234
Fidelity VIP II Index 500 78 99 120 197 78 50 87 197 16 50 87 197
MFS Emerging Growth 85 122 159 287 85 72 127 287 23 72 127 287
MFS High Income Fund 85 122 159 287 85 72 127 287 23 72 127 287
MFS Research 85 122 159 287 85 72 127 287 23 72 127 287
MFS Value Series 85 122 159 287 85 72 127 287 23 72 127 287
MFS World Government 85 122 159 287 85 72 127 287 23 72 127 287
Morgan Stanley Emerging Markets Equity 93 145 210 381 93 96 168 381 30 96 168 381
Morgan Stanley Fixed Income 82 112 142 249 82 63 110 249 20 63 110 249
Pioneer Capital Growth 83 115 148 260 83 66 115 260 21 66 115 260
Pioneer Real Estate 88 129 173 318 88 80 141 318 26 80 141 318
Scudder Global Discovery 93 145 201 381 93 93 168 381 31 93 168 381
Scudder Growth & Income 83 115 148 262 83 83 116 262 21 83 116 262
Scudder International 85 121 159 286 85 85 127 286 23 85 127 286
T. Rowe Price Equity Income 84 117 151 268 84 68 118 268 22 68 118 268
T. Rowe Price International 86 123 162 293 86 74 129 293 24 74 129 293
T. Rowe Price Limited-Term Bond 82 112 143 249 82 63 110 249 20 63 110 249
T. Rowe Price New America Growth 84 117 151 268 84 68 118 268 22 68 118 268
T. Rowe Price Personal Strategy Balanced 84 118 154 274 84 69 121 274 22 69 121 274
============================================ ====== ====== ====== ======== ====== ====== ===== ======= ====== ====== ===== ========
</TABLE>
These examples should not be considered representations of past or future
expenses. Actual expenses paid may be greater than or less than those shown,
subject to the guarantees in the Policy. The assumed 5% annual rate of return is
hypothetical and should not be considered a representation of past or future
annual returns, which may be greater or less than this assumed rate.
4/ The $30 annual Policy Fee is reflected as a daily 0.10% charge in these
Examples, based on an average Accumulation Value of $30,000.
8
<PAGE>
<TABLE>
<CAPTION>
Examples(5) 1. Surrender Policy at 2. Annuitize Policy at 3. Policy is not
An Owner would pay the following end of the time period or the end of the time surrendered and is not
expenses on a $1,000 investment, annuitize an Annuity period and Annuity annuitized
assuming a 5% annual return on Option 4 (Lifetime Option 4 (Lifetime
assets (including the Enhanced Death Income) is NOT chosen Income) IS chosen
Benefit):
Portfolio 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr
- -------------------------------------------- ------ ------ ------ -------- ------ ------ ----- ------- ------ ------ ----- ========
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alger American Growth $87 126 167 304 $87 77 134 304 $87 77 134 304
Alger American Small Capitalization 88 129 172 317 88 80 140 317 88 80 140 317
Federated Prime Money Fund II 87 126 167 306 87 77 135 306 87 77 135 306
Federated Fund for U.S. Government
Securities II 87 126 167 306 87 77 135 306 87 77 135 306
Fidelity VIP II Asset Manager Growth 89 133 178 331 89 83 146 331 89 83 146 331
Fidelity VIP II Contrafund 86 124 163 296 86 75 130 296 86 75 130 296
Fidelity VIP Equity Income 85 120 157 282 85 71 124 282 85 71 124 282
Fidelity VIP II Index 500 82 110 139 240 82 61 106 240 82 61 106 240
MFS Emerging Growth 89 133 178 331 89 83 146 331 89 83 146 331
MFS High Income Fund 89 133 178 331 89 83 146 331 89 83 146 331
MFS Research 89 133 178 331 89 83 146 331 89 83 146 331
MFS Value Series 89 133 178 331 89 83 146 331 89 83 146 331
MFS World Government 89 133 178 331 89 83 146 331 89 83 146 331
Morgan Stanley Emerging Markets Equity 96 156 220 425 96 107 187 425 96 107 187 425
Morgan Stanley Fixed Income 86 123 162 293 86 74 129 293 86 74 129 293
Pioneer Capital Growth 87 126 167 304 87 77 134 304 87 77 134 304
Pioneer Real Estate 91 140 192 362 91 91 160 362 91 91 160 362
Scudder Global Discovery 96 156 220 425 96 107 187 425 96 107 187 425
Scudder Growth & Income 87 126 167 306 87 77 135 306 87 77 135 306
Scudder International 89 133 178 331 89 83 146 331 89 83 146 331
T. Rowe Price Equity Income 87 128 170 312 87 79 128 312 87 79 128 312
T. Rowe Price International 89 134 181 337 89 85 149 337 89 85 149 337
T. Rowe Price Limited-Term Bond 86 123 162 293 86 74 129 293 86 74 129 293
T. Rowe Price New America Growth 87 128 170 312 87 79 128 312 87 79 128 312
T. Rowe Price Personal Strategy Balanced 88 129 173 318 88 80 140 318 88 80 140 318
============================================ ====== ====== ====== ======== ====== ====== ===== ======= ====== ====== ===== ========
</TABLE>
These examples should not be considered representations of past or future
expenses. Actual expenses paid may be greater than or less than those shown,
subject to the guarantees in the Policy. The assumed 5% annual rate of return is
hypothetical and should not be considered a representation of past or future
annual returns, which may be greater or less than this assumed rate.
- -----------------------------------------------------------
FINANCIAL STATEMENTS
The Financial Statements for United of Omaha, the Subaccounts and the related
independent auditor's report are contained in the Statement of Additional
Information. (See the cover page on how to get a copy.) At December 31, 1998,
net assets of the Subaccounts were represented by the following Accumulation
Unit Values and Accumulation Units. This information should be read in
conjunction with the Variable Account's financial statements and related notes
included in the Statement of Additional Information.
5/ The $30 annual Policy Fee is reflected as a daily 0.10% charge in these
Examples, based on an average Accumulation Value of $30,000.
9
<PAGE>
<TABLE>
<CAPTION>
Accumulation Unit Accumulation Unit Number of
Subaccount Value on Value at End of Year Accumulation Units at
(Date of Inception Commencement Date (December 31) End of Year
($) ($) December 31)
- ------------------------------------------- ------------------ --------------- ---------------------
<S> <C> <C> <C>
Alger American Growth (6/5/95) 10.
1995............................................... 11.673 140,897.
1996............................................... 13.071 1,358,882.
1997............................................... 16.240 1,918,481
1998...............................................
Alger American Small Capitalization (6/5/95) 10.
1995............................................... 12.094 148,670.
1996............................................... 12.448 1,474,107.
1997............................................... 13.690 2,021,476
1998...............................................
Federated Prime Money Fund II (6/5/95) 1.
1995............................................... 1.023 3,065,603.
1996............................................... 1.059 21,525,823.
1997............................................... 1.098 19,485,025
1998...............................................
Federated Fund for U.S. Government Securities II 10.
(6/5/95)
1995............................................... 10.570 122,440.
1996............................................... 10.882 1,128,539.
1997............................................... 11.674 1,824,790
1998...............................................
Fidelity VIP II Asset Manager: Growth (6/5/95) 10.
1995............................................... 11.269 199,570
1996............................................... 13.353 1,655,034
1997............................................... 16.500 2,748,520
1998...............................................
Fidelity VIP II Contrafund (6/5/95) 10.
1995............................................... 11.740 150,364
1996............................................... 14.070 1,785,274
1997............................................... 17.257 2,992,115
1998...............................................
Fidelity VIP Equity Income (6/5/95) 10.
1995............................................... 11.596 233,679
1996............................................... 13.090 2,256,678
1997............................................... 16.571 3,528,096
1998...............................................
Fidelity VIP II Index 500 (5/1/97) 10.
1997............................................... 12.166 829,118
1998...............................................
MFS Emerging Growth (6/5/95) 10.
1995............................................... 11.659 123,460
1996............................................... 13.480 1,854,145
1997............................................... 16.230 2,890,806
1998...............................................
MFS High Income Fund (6/5/95) 10.
1995............................................... 10.452 87,378.
1996............................................... 11.548 859,361
1997............................................... 12.960 1,729,635
1998...............................................
MFS Research (6/5/95) 10.
1995............................................... 10.986 117,165.
1996............................................... 13.277 1,381,316.
1997............................................... 15.775 2,608,735
1998...............................................
10
<PAGE>
MFS Value Series (5/1/97) 10.
1997............................................... 12.394 292,197
1998...............................................
MFS World Government (6/5/95) 10.
1995............................................... 10.243 56,393.
1996............................................... 10.527 819,686.
1997............................................... 10.283 1,302,843
1998...............................................
Morgan Stanley Emerging Markets Equity (5/1/98) 10.
1998
Morgan Stanley Fixed Income (5/1/98) 10.
1998
Pioneer Capital Growth (5/1/97) 10.
1997............................................... 11.756 383,956
1998...............................................
Pioneer Real Estate (5/1/97) 10.
1997............................................... 12.229 428,572
1998...............................................
Scudder Global Discovery (5/1/97) 10.
1997............................................... 11.478 194,110
1998...............................................
Scudder Growth & Income (5/1/97) 10.
1997............................................... 12.190 561,594
1998...............................................
Scudder International (6/5/95) 10.
1995............................................... 10.642 99,029.
1996............................................... 12.067 1,269,457.
1997............................................... 13.004 2,391,655
1998...............................................
T.Rowe Price Equity Income (6/5/95) 10.
1995............................................... 11.625 121,994.
1996............................................... 13.731 1,861,298.
1997............................................... 17.481 3,837,388
1998...............................................
T.Rowe Price International (6/5/95) 10.
1995............................................... 10.569 181,399.
1996............................................... 11.976 1,736,784.
1997............................................... 12.200 2,857,269.
1998...............................................
T.Rowe Price Limited-Term Bond (6/5/95) 10.
1995............................................... 10.373 56,018.
1996............................................... 10.582 631,437.
1997............................................... 11.160 1,302,580
1998...............................................
T.Rowe Price New America Growth (6/5/95) 10.
1995............................................... 13.061 58,555.
1996............................................... 15.496 917,255.
1997............................................... 18.543 1,599,824
1998...............................................
11
<PAGE>
T.Rowe Price Personal Strategy (6/5/95) 10.
1995............................................... 11.272 123,287.
1996............................................... 12.719 1,703,217.
1997............................................... 14.833 2,792,934
1998...............................................
* Accumulation Unit Values are rounded to the nearest hundredth of a cent.
** Accumulation Units are rounded to the nearest unit.
</TABLE>
- -----------------------------------------------------------
ABOUT US
We are United of Omaha Life Insurance Company, a stock life insurance
company organized under the laws of the State of Nebraska in 1926. We are a
wholly owned subsidiary of Mutual of Omaha Insurance Company. The Mutual of
Omaha family of companies provide life, health, disability, home and auto
insurance, mutual funds, trust services, and investment sales and brokerage
services. The Mutual of Omaha Companies have a proud tradition of supporting
environmental education, made popular through its long-running Mutual of Omaha's
Wild Kingdom television program, and continued through its Wildlife Heritage
Trust. United of Omaha is principally engaged in the business of issuing group
and individual life insurance and annuity policies, and group accident and
health insurance in all States of the United States (except New York), and the
District of Columbia. As of December 31, 1997, United of Omaha had assets of
over $9.2 billion.
We may from time to time publish (in advertisements, sales literature and
reports to Owners) the ratings and other information assigned to us by one or
more independent rating organizations such as A.M. Best Company, Moody's,
Standard & Poor's, and Duff & Phelps. The purpose of the ratings is to reflect
our financial strength and/or claims-paying ability, and the ratings should not
be considered as bearing on the investment performance of assets held in the
Variable Account or the degree of risk associated with an investment in the
Variable Account.
- -----------------------------------------------------------
INVESTMENT OPTIONS
We recognize you have very personal goals and investment strategies. The
Policy allows you to choose from a wide array of investment options - each
chosen for its potential to meet specific investment objectives. You may
allocate all or a part of your Policy Purchase Payments to one or a combination
of the variable investment options or the fixed investment options (allocations
to the Systematic Transfer Account are limited to initial purchase payment and
rollovers only). Allocations must be in whole percentages and total 100%.
THE INVESTMENT RESULTS OF EACH INVESTMENT OPTION, WHOSE INVESTMENT OBJECTIVES
ARE DESCRIBED BELOW, ARE LIKELY TO DIFFER SIGNIFICANTLY. YOU SHOULD CONSIDER
CAREFULLY, AND ON A CONTINUING BASIS, WHICH PORTFOLIO OR COMBINATION OF
INVESTMENT OPTIONS BEST SUITS YOU LONG-TERM INVESTMENT OBJECTIVES.
THE SERIES FUND PORTFOLIO, WHILE THEY MAY HAVE THE SAME OR SIMILAR NAMES OF
RETAIL MUTUAL FUNDS, ARE NOT THE SAME AS THOSE FUNDS. bY LAW, THE pOLICY CANNOT
OFFER THOSE RETAIL MUTUAL FUNDS, SO IT OFFERS INVESTMENT PORTFOLIOS WHOSE NAMES
AND CHARACTERISTICS MAY BE SIMILAR TO THEM BUT WHOSE PERFORMANCE IS NOT
NECESSARITY RELATED TO THE RETAIL FUNDS.
FOR DETAILED INFORMATION ABOUT ANY PORTFOLIO, INCLUDING ITS PERFORMANCE HISTORY,
REFER TO THE sERIES fUND PROSPECTUS FOR THAT PORTFOLIO.
VARIABLE INVESTMENT OPTIONS
With the Policy's variable investment options, you bear the investment
risk, not us. This means you, not we, control the amount of money you invest in
each of the variable investment portfolios, and you, not we, bear the risk those
portfolios will perform better or worse than you expect.
The Variable Account, United of Omaha Separate Account C, provides you
with variable investment options in the form of Series Fund portfolios to fund
the benefits provided by your Policy. Each Series Fund is an open-end investment
management company. When you allocate Policy funds to a Series Fund portfolio,
those funds are placed in a Variable Account Subaccount corresponding to that
portfolio, and the Subaccount in turn in invests in the Series Fund portfolio in
the amount of your allocation. Each portfolio operates as a separate investment
fund, and the income or losses of one portfolio generally have no effect on the
investment performance of any other portfolio. Complete descriptions of each
portfolio's investment objectives and restrictions and other material
information related to an investment in the portfolio are contained in the
prospectuses for each of the Series Funds which accompany this Prospectus.
12
<PAGE>
The Variable Account is registered with the SEC as a unit investment trust.
However, the SEC does not supervise the management or the investment practices
or policies of the Variable Account or United of Omaha. The Variable Account was
established as a separate investment account of United of Omaha under Nebraska
law on December 1, 1993. Under Nebraska law, we own Variable Account assets, but
they are held separately from our other assets and are not charged with any
liability or credited with any gain of other separate investment accounts or
other business unrelated to the Variable Account. These assets are held by us
for our variable annuity insurance policies. Any and all distributions made by
the Series Funds with respect to the shares held by the Variable Account will be
reinvested in additional shares at net asset value. Because we do not manage the
investments of the portfolios, we do not guarantee the Variable Account's
performance. We are, however, responsible for meeting the obligations of the
Policy to you.
<TABLE>
<CAPTION>
- ------------------- ---------------------------------------------------------------- --------------------------------------------
Variable Investment Options
Asset under United of Omaha Separate Account C Objective
Category* (Series Fund-Portfolio)
Investments
<S> <C> <C>
- ------------------- ---------------------------------------------------------------- --------------------------------------------
MFS Variable Insurance Trust -
MFS Emerging Growth Portfolio (5) Long-term capital appreciation.
Aggressive
Growth
Common stocks of small and medium-sized
companies with growth potential. May make
limited investments in lower rated bonds or
comparable unrated securities.
Alger American Fund -
Alger American Small Capitalization Portfolio (1) Long-term capital appreciation
Common stocks of companies with total market
capitalization of less than $1 billion.
Such securities may have limited marketability
and be subject to more abrupt or erratic
market movements than the general equity
market.
- ------------------- -------------------------------------------------------------------------------------------------------------
Pioneer Variable Contracts Trust - Long-term capital appreciation
Real Estate Pioneer Real Estate Growth Portfolio (8) with current income.
Real estate investment trusts (REITs) and
other real estate industry companies.
- ------------------- -------------------------------------------------------------------------------------------------------------
T. Rowe Price International Series, Inc. -
T. Rowe Price International Stock Portfolio (10) Long-term capital appreciation.
International
Common stock of foreign companies.
Scudder Variable Life Investment Fund -
Scudder VLIF International Portfolio (9) Long-term capital appreciation.
Common stock of foreign companies, diversified
among several countries and industries.
Scudder Variable Life Investment Fund - Long-term capital
appreciation Scudder VLIF Global Discovery Portfolio (9)
with current income.
Common stocks of small foreign and domestic
companies, including to a limited extent in
lower rated bonds or comparable unrated
securities.
Morgan Stanley Universal Funds, Inc. -
Morgan Stanley Emerging Markets Equity Portfolio (6) Long-term capital appreciation.
Securities of "emerging" foreign countries
(countries whose economies are developing
strongly and where equity markets are becoming
sophisticated). Such investments may not be
feasible or may involve unacceptable political
risks in some countries, and may involve
greater risk than securities in more developed
countries and markets.
- ------------------- -------------------------------------------------------------------------------------------------------------
MFS Variable Insurance Trust - High current income
Bond - MFS High Income Portfolio (5) and capital appreciation.
High Yield
Diversified bond portfolio, some of which may
involve equity features, including lower-rated
bonds or comparable unrated securities.
- ------------------- -------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. -
T. Rowe Price New American Growth Portfolio (11) Long-term capital appreciation.
Common stocks of companies in the service
sector of the economy.
MFS Variable Insurance Trust -
- ------------------- ---------------------------------------------------------------- --------------------------------------------
13
<PAGE>
Long-term capital appreciation.
Common stocks or securities convertible into
common stocks of companies expected to possess
better than average prospects for long-term
growth. May invest to a limited extent in
lower-rated securities or comparable unrated
securities.
Fidelity Variable Insurance Products Fund II -
Fidelity VIP II Contrafund Portfolio (3) Long-term capital appreciation.
Securities of companies, foreign and domestic,
that are currently undervalued, unpopular or
overlooked, but analysts believe show
potential for growth. May use techniques to
hedge risk.
Alger American Fund -
Alger American Growth Portfolio (1) Long-term capital appreciation.
Common stocks of companies with total market
capitalization of $1 billion or more.
Pioneer Variable Contracts Trust -
Pioneer Capital Growth Portfolio (8) Long-term capital appreciation.
Securities of companies, foreign and domestic,
that are currently undervalued, unpopular or
overlooked, but analysts believe show
potential for growth.
MFS Variable Insurance Trust -
MFS Value Series Portfolio (5) Long-term capital appreciation.
Common stocks of foreign and domestic
companies. May make limited investments in
lower rated bonds or comparable unrated
securities.
- ------------------- -------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund II - Long-term
capital appreciation Fidelity VIP II Index 500 Portfolio (3)
with current income.
Growth &
Income
Common stocks of companies that comprise the
Standard & Poor's 500 index.
Scudder Variable Life Investment Fund - Long-term capital
appreciation Scudder VLIF Growth & Income Portfolio (9) with
current income.
Common and preferred stocks, and securities
convertible into common stocks, of large
established companies.
- ------------------- -------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. -
T. Rowe Price Equity Income Portfolio (11) Dividend income and capital appreciation.
Equity
Income
Common stocks of established companies that
pay dividends.
Fidelity Variable Insurance Products Fund - Dividend income
and capital appreciation Fidelity VIP Equity Income
Portfolio (3) surpassing the S&P 500 average.
Securities of established companies that
produce income and capital appreciation.
- ------------------- ---------------------------------------------------------------- --------------------------------------------
T. Rowe Price Equity Series, Inc. - (11)
T. Rowe Price Personal Strategy Balanced Portfolio Dividend income and capital appreciation.
Balanced
Diversified portfolio of stocks, bond and
money market securities. Bond holdings are
primarily investment grade, but can include
more volatile unrated bonds.
Fidelity Variable Insurance Products Fund II -
Fideltiy VIP II Asset Manager Growth Portfolio (3,4) Long
term capital appreciation.
Diversified portfolio of domestic and foreign
stocks, bonds, money market securities, and
derivative transactions.
- ------------------- -------------------------------------------------------------------------------------------------------------
MFS Variable Insurance Trust - Capital appreciation and growth with
Bond - MFS World Government Portfolio (5) moderate current income.
International
Foreign and U.S. government bonds.
Insurance Management Series -
Federated Fund for U.S. Government Securities II Portfolio (2) Current income.
- ------------------- ---------------------------------------------------------------- --------------------------------------------
Bond -
Domestic
U.S. Government bonds.
T. Rowe Price Fixed Income Series, Inc. - High level of current income consistent
T. Rowe Price Limited Term Bond Portfolio (11) with modest price fluctuations.
Short- and intermediate-term investment grade
debt securities.
- ------------------- -------------------------------------------------------------------------------------------------------------
14
<PAGE>
Above average return from a diversified
Morgan Stanley Universal Funds, Inc. - portfolio of fixed income securities and
Morgan Stanley Fixed Income Portfolio (7) derivatives.
Medium to high quality fixed income
investments of intermediate maturity.
- ------------------- -------------------------------------------------------------------------------------------------------------
Insurance Management Series - Current income consistent with the
Money Market Federated Prime Money Fund II Portfolio (2) stability of principal.
Money market instruments maturing in 13 months or less. This portfolio is not insured by the
U.S. government, and there is no guarantee it will be able to maintain a stable net asset
value per share.
- ------------------- -------------------------------------------------------------------------------------------------------------
</TABLE>
Investment Advisers and Subadvisers of the Series Funds:
(1) Fred Alger Management, Inc.
(2) Federated Advisors.
(3) Fidelity Management & Research Company.
(4) Fidelity Investment Management and Research (U.K.) Inc., and Fidelity
Management and Research Far East Inc., regarding research and investment
recommendations with respect to companies based outside the United States.
(5) Massachusetts Financial Services Company.
(6) Morgan Stanley Asset Management, Inc.
(7) Miller Anderson & Sherrerd, LLP.
(8) Pioneer Investment Management.
(9) Scudder Kemper Investments, Inc.
(10)Rowe Price-Fleming International, Inc., a joint venture
between T. Rowe Price Associates, Inc. and Robert
Fleming Holdings Limited.
(11)T. Rowe Price Associates, Inc.
(*) Asset Category designations are our own to help you gain insight into each
portfolio's intended objectives, but do not assure any portfolio will perform
consistent with the categorization. INFORMATION CONTAINED IN THE SERIES FUNDS'
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING IN ANY PORTFOLIO OF THE
VARIABLE ACCOUNT.
WE DO NOT ASSURE THAT ANY PORTFOLIO WILL ACHIEVE ITS STATED OBJECTIVE. DETAILED
INFORMATION, INCLUDING A DESCRIPTION OF EACH PORTFOLIO'S INVESTMENT OBJECTIVE
AND POLICIES, A DESCRIPTION OF RISKS INVOLVED IN INFESTING IN EACH OF THE
PORTFOLIOS, AND EACH PORTFOLIO'S FEES AND EXPENSES, IS CONTAINED IN THE
PROSPECTUSES FOR THE SERIES FUNDS, CURRENT COPIES OF WHICH ACCOMPANY THIS
PROSPECTUS. NONE OF THESE PORTFOLIOS IS INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT.
The performance history of each Variable Account Subaccount, which gives
you an indication of how each Series Fund portfolio has performed and the effect
of Policy expenses on that performance, is discussed in the Statement of
Additional Information. You may obtain a copy from us. The performance history
of each portfolio is more fully described in the Series Fund prospectus for each
portfolio.
o Adding, Deleting, or Substituting Variable Investments
We do not control the Series Funds, so cannot guarantee that any of the
portfolios will always be available. We retain the right to change the Variable
Account and its investments. This means we may eliminate the shares of any
portfolio held in our Variable Account and to substitute shares of another
open-end management investment company for the shares of any portfolio, if the
shares of the portfolio are no longer available for investment or if, in our
judgment, investment in any portfolio would be inappropriate in view of the
purposes of the Variable Account. We will first notify you and receive the SEC's
and necessary State approval before making such a change.
New portfolios may be added, or existing portfolios eliminated, when, in
our sole discretion, conditions warrant such a change. If a portfolio is
eliminated, we will ask you to reallocate any amount allocated to the eliminated
portfolio. If you do not reallocate these amounts, we will automatically
reinvest them in the Money Market Portfolio.
If we make a portfolio substitution or change, we may change the Policy to
reflect the substitution or change. Our Variable Account may be (i) operated as
an investment management company or any other form permitted by law, (ii)
deregistered with the SEC if registration is no longer required or (iii)
combined with one or more other separate accounts. To the extent permitted by
law, we also may transfer Policy assets of the Variable Account to other
accounts.
15
<PAGE>
o FIXED INVESTMENT OPTIONS
With fixed investment options, we bear the investment risk, unlike variable
investment options where you bear that risk. This means that we will guarantee
you will earn a minimum interest rate of at least 3%, and each year may declare
a higher current interest rate that we guarantee for at least one year. We have
full control over how assets allocated to fixed investment options are invested,
and we bear the risk those assets will perform better or worse than the amount
of interest we guarantee to pay you. The focus of this Prospectus is to disclose
the Variable Account aspects of the Policy. For details regarding the fixed
investment options, see the Policy.
o Systematic Transfer Account
The Systematic Transfer Account is the fixed account option used if you
elect at the time of application to participate in the Systematic Transfer
Enrollment Program ("STEP program"). The STEP program is used to automatically
transfer a predetermined dollar amount on a monthly basis to any of the
Subaccounts you choose at the time of application. The allocation and the
predetermined dollar amount may not be changed. You must make a minimum
allocation of $5,000 to the Systematic Transfer Account in order to participate
in the STEP program. No additional funds (other than funds designated in the
application to be transferred into the Policy pursuant to an Internal Revenue
Code Section 1035 transfer) may be allocated to the Systematic Transfer Account
after the date of policy issue.
PURCHASE PAYMENTS ALLOCATED TO THE SYSTEMATIC TRANSFER ACCOUNT AND PREMIUM
ALLOCATED AND AMOUNTS TRANSFERRED TO THE FIXED ACCOUNT BECAME PART OF THE
GENERAL ACCOUNT ASSETS OF UNITED OF OMAHA. INTEREST IN THE GENERAL ACCOUNT HAVE
NOT BEEN REGISTERED WITH THE SEC AND ARE NOT SUBJECT TO THE SEC'S REGULATION,
NOR IS THE GENERAL ACCOUNT REGISTERED AS AN INVESTMENT COMPANY WITH THE SEC.
THEREFOR, SEC STAFF HAVE NOT REVIEWED THE FIXED ACCOUNT DISCLOSURES IN THIS
PROSPECTUS.
o Fixed Account and Systematic Transfer Account
The Fixed Account and the Systematic Transfer Account includes all our
assets except those segregated in the Variable Account or in any other separate
investment account. You may allocate Purchase Payments to the Fixed Account or
transfer amounts from the Variable Account to the Fixed Account. Instead of you
bearing the investment risk, as you do with investments allocated to the
Variable Account, we bear the full investment risk for investments in the Fixed
Account. We have sole discretion to invest the assets of our general account,
including the Fixed Account, subject to applicable law.
We guarantee that money invested in the Fixed Account and the Systematic
Transfer Account will earn an effective rate of at least 3% per year, and may
earn more than that. Once declared, we guarantee a current interest rate for at
least one year. Different amounts of interest may be credited to the Systematic
Transfer Account and the Fixed Account. One transfer out of the Fixed Account is
allowed each Policy Year. (This limit does not apply under the Dollar Cost
Averaging or Asset Allocation programs). The maximum amount that can be
transferred out of the Fixed Account during any Policy Year is 10% of Fixed
Account value on the date of the transfer. No charge is imposed on such
transfers. Funds allocated to the Systematic Transfer Account must be completely
transferred to the Variable Account or the Fixed Account within either 5 months
or 13 months of deposit. Such transfers from the Systematic Transfer Account do
not count toward the 12 free transfers between Variable Account Subaccounts or
to the Fixed Account allowed each Policy year. You may not transfer funds to the
Systematic Transfer Account. We reserve the right to modify transfer privileges
at any time. Partial withdrawals from the Fixed Account are limited to a pro
rata amount (with withdrawals from the Variable Account). Withdrawals and
transfers from the Fixed Account and the Systematic Transfer Account may be
delayed for up to six months, and withdrawals may be subject to a Withdrawal
Charge. For purposes of crediting interest, the most recent payment or transfer
into the Fixed Account, plus interest allocable to that payment or transfer, is
considered to be withdrawn or transferred out first; the next oldest payment
plus interest is considered to be transferred out next, and so on (a "first-in,
first-out" procedure).
WE HAVE SOLE DISCRETION TO SET CURRENT INTEREST RATES OF FIXED INVESTMENT
OPTIONS. THE INTEREST RATE CREDITED TO EACH DEPOSIT INTO THE SYSTEMATIC TRANSFER
ACCOUNT IS FIXED ON THE DATE OF EACH DEPOSIT. WE DO NOT GUARANTEE THE LEVEL OF
FUTURE CURRENT INTEREST RATES OF FIXED INVESTMENT OPTIONS, EXCEPT THAT THEY WILL
NOT BE LESS THAN AN EFFECTIVE RATE OF 3% PER YEAR COMPOUNDED ANNUALLY.
We guarantee that, at any time prior to the Annuity Starting Date, the
amount in your Fixed Account or Systematic Transfer Account will be not be less
than the amount of Purchase Payment allocated or Accumulation Value transferred
to the Fixed Account or Systematic Transfer Account, plus interest at an
effective rate of 3% per year, plus excess interest credited to amounts in the
Fixed Account or Systematic Transfer Account, less premium or other taxes
allocable to the Fixed Account or Systematic Transfer Account, less that part of
the Monthly Deduction allocable to the Fixed Account or Systematic Transfer
Account and less any amounts deducted from the Fixed Account or Systematic
Transfer Account in connection with partial withdrawals (including any
Withdrawal Charges) or transfers to the Variable Account.
16
<PAGE>
o TRANSFERS
The Policy is designed for long-term investment, not for active trading or
"market timing." Excessive transfers could harm other Owners by having a
detrimental effect on portfolio management. Prior to the Annuity Starting Date,
you may transfer Policy value from one Subaccount to another, from the Variable
Account to the Fixed Account, or from the Fixed Account to any Subaccount, as
often as you like, subject to these rules:
Our Rules:
o We must receive notice of the transfer - either Written Notice or an
authorized Telephone Transaction.
o The transferred amount must be at least $500, or the entire Subaccount
value if it is less. (If the Subaccount value remaining after a transfer
will be less than $500, we will include that amount as part of the
transfer.)
o We reserve the right to limit transfers from the Variable Account to the
Fixed Account of amounts previously transferred from the Fixed Account.
o The first 12 transfers from Variable Account Subaccounts are free. The rest
cost $10 each. This fee is deducted from the amount transferred.
o A transfer from the Fixed Account:
- currently may be made only once each Policy Year;
- is free;
- does not count toward the 12 free transfer limit; and
- is limited during any Policy Year to 10% of the Fixed Account value on
the date of the transfer.
o We reserve the right to limit transfers, or to modify transfer privileges,
for any permissible reason.
o If the Accumulation Value in any Subaccount falls below $500, we may
transfer the remaining balance, without charge, to the Money Market
Subaccount.
o Transfers made pursuant to participation in the Dollar Cost Averaging,
Asset Allocation or Rebalancing programs are not subject to the amount or
timing limitations of these rules, nor are they subject to a Transfer fee.
See sections describing those programs for the rules of each program.
Third-party Transfers. Where permitted and subject to our rules, we may
accept your authorization to have a third party exercise transfers on your
behalf. We can suspend or cancel our acceptance any time upon notice to you. An
example of a reason might be if the third party is practicing "market timing."
We can also limit the availability of Subaccounts and the Fixed Account for
transfers by the third party, upon notice to you. We would not impose such
restrictions where we have Written Notice that the third party has been duly
appointed by a court or by you to act on your behalf for all your financial
affairs.
o DOLLAR COST AVERAGING
Our Dollar Cost Averaging program allows you to automatically transfer, on
a periodic basis, a set amount or percentage from one Subaccount or the Fixed
Account to any Subaccount(s). You can begin Dollar Cost Averaging when you
purchase the Policy or later. You can increase or decrease the amount or
percentage of transfers or discontinue the program at any time. Rules of the
Dollar Cost Averaging program are:
Our Rules:
o The Dollar Cost Averaging program is free.
o We must receive notice of your election and any changed instruction -
either Written Notice or an authorized Telephone Transaction.
o Automatic transfers can occur monthly, quarterly, semi-annually, or
annually.
o There must be at least $5,000 of Accumulation Value in the applicable
Subaccount or Fixed Account.
o Amount of each transfer must be at least $100, and must be $50 per
Subaccount.
o If transfers are made from the Fixed Account, the maximum periodic transfer
amount is 10% of that account's value at the time of the first Dollar Cost
Averaging transfer. There is no maximum transfer amount requirement out of
the Subaccounts of the Variable Account.
o Dollar Cost Averaging program transfers cannot begin before the end of a
Policy's free look (a/k/a "right to examine") period.
o You may specify that transfers will begin on the 1st through the 28th day
(or, if not a Valuation Date, the next following Valuation Date) following
the Policy's free look period. If you do not select a date, the program
will begin on the next Policy monthly anniversary following the date the
Policy's free look period ends.
o You can limit the number of transfers to be made, in which case the program
will end when that number has been made. Otherwise, the program will
terminate when the amount remaining in the applicable Subaccount or the
Fixed Account is less than $500.
DOLLAR COST AVERAGING AND THE STEP PROGRAM RESULT IN THE PURCHASE OF MORE
ACCUMULATION UNITS WHEN THE ACCUMULATION UNIT VALUE IS LOW, AND FEWER UNITS WHEN
THE ACCUMULATION UNIT VALUE IS HIGH, REDUCING THE AVERAGE COST PER UNIT AND
HOPEFULLY THEREBY ACCUMULATING MORE UNITS. HOWEVER, THERE IS NO GUARANTEE THAT
EITHER PROGRAM WILL RESULT IN HIGHER POLICY VALUE OR OTHERWISE BE SUCCESSFUL.
17
<PAGE>
o SYSTEMATIC TRANSFER ENROLLMENT
PROGRAM ("STEP program")
The STEP program allows you to automatically transfer funds on a monthly
basis from the Systematic Transfer Account to any other Policy investment
option. It allows you to use a dollar cost averaging concept for your initial
Purchase Payment to move this payment from a fixed interest account into
variable investment options within either a 5 month or a 13 month period,
depending upon which time period you elect. If you want to move Policy funds
from a fixed interest account into variable investment options over a longer
timer period using the same concept, then you should use the Dollar Cost
Averaging program.
Our Rules:
o The STEP program is free.
o Can only be selected on the initial application.
o Must be at least $5,000 in Systematic Transfer Account to begin.
o Amount transferred each month must be at least an amount sufficient to
transfer the entire amount out of the Systematic Transfer Account in equal
payments within either 5 months or 13 months of deposit.
o Transfers must be at least $50 per Subaccount.
o Allocation and amount of each monthly transfer cannot be changed.
o No new Purchase Payments (other than funds designated in the application to
be transferred into the Policy pursuant to an Internal Revenue Code Section
1035 transfer) may be allocated to this account after the Policy Issue
Date.
o Upon receipt of funds by Section 1035 transfer, the 5 or 13 month period
requirement is restarted and the minimum monthly transfer amount is
recalculated
o Cannot begin before the end of the Policy's free look (a/k/a "right to
examine") period.
o Transfers will begin on the 1st through the 28th day (or, if not a
Valuation Date, the next following Valuation Date), as specified by you,
following the free look period. If you do not select a start date, the STEP
program will begin on the next Policy monthly anniversary following the
date the Policy's free look period ends.
o No transfers may be made into the Systematic Transfer Account.
o All funds remaining in the Systematic Transfer Account on the date of the
last (5th or 13th, depending upon your election) monthly transfer date will
be transferred to the Subaccounts in a pro rata amount consistent with your
allocation instructions.
o The STEP program ends the earlier of the date when all amounts in the
Systematic Transfer Account have been transferred or the date of the last
monthly STEP program transfer.
o ASSET ALLOCATION PROGRAM
The Asset Allocation program allows you to allocate Purchase Payments and
policy value among the variable investment options and the Fixed Account. We
will periodically rebalance your Policy investments consistent with your
allocation instructions. You can specify your own desired allocation
instructions, or you can choose to use one of the five Asset Allocation Models
outlined below.
Our Rules:
o The Asset Allocation program is free.
o You must request the Asset Allocation program and give us your rebalancing
instructions by Written Notice. Changed instructions, or a request to end
this program must also be by Written Notice.
o You must have at least $10,000 of Policy Accumulation Value to begin the
Asset Allocation program.
o You may have rebalancing occur quarterly, semi-annually or annually.
o Transfers made pursuant to this program do not count in determining whether
a Transfer Fee applies.
18
<PAGE>
<TABLE>
<CAPTION>
ASSET ALLOCATION MODES
ALLOCATIONS
Portfolio Principal Portfolio Income Capital Equity
(listed agressive Conserver Protector Builder Accumulator Maximizer
in conservative) (conservative) (moderately (moderate) (moderately (aggressive)
conservative) aggressive)
% % % % %
- ---------------------------------------- -------------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Alger American Small Capitalization 5 4 10 12
Pioneer Real Estate Growth 4 5 6
T.Rowe Price International 6 13 22 25
Scudder International 16
MFS High Income 4 5 5
T.Rowe Price New America Growth 10
MFS Value Series 5 10 15 10
Fidelity VIP II Index 500 5 10 15 12 16
T.Rowe Price Equity Income 10 20
Fidelity VIP Equity Income 8 16 16
MFS World Government 3 5 5
Federated Fund for U.S. Government
Securities 5
T.Rowe Price Limited-Term Bond 50 37 20 16
Morgan Stanley Fixed Income Bond 5
Federated Prime Money Fund II 19 10 5
- ---------------------------------------- --------------------------- --------------- -------------- ----------
</TABLE>
We use Ibbotson Associates to develop the Asset Allocation Model
allocations. They are an investment consulting firm specializing in applying
investment theories and empirical findings (such as historical return data
collected on the Subaccount portfolios) to quantify the benefits of
diversification for particular investment profiles.
o REBALANCING PROGRAM
The Rebalancing program allows you to rebalance your Policy Accumulation Value
amont the variable investment options and the Fixed Account pursuant to your
initial allocation percentage instructions on a quarterly, semi-annual, or
annual basis. Rebalancing utilizes your allocation instructions at the end of
any STEP program period (so never rebalances any assets to the Systematic
Transfer Account), or you may change your rebalancing allocation instructions at
any time. Any change will not be effective until the next rebalancing occurs.
Our Rules:
o The Rebalancing program is free.
o You must request the Rebalancing program and give us your rebalancing
instructions by Written Notice. Changed instructions, or a request to end
this program must also be by Written Notice.
o You must have at least $10,000 of Policy Accumulation Value to begin the
Rebalancing program.
o You may have rebalancing occur quarterly, semi-annually or annually.
o Transfers made pursuant to this program do not count in determining whether
a Transfer Fee applies.
- -----------------------------------------------------------
BASIC POLICY PROVISIONS
The Ultrannuity Series V Policy is a Flexible Payment Variable Deferred Annuity
Policy. The Policy allows you to save and invest your assets on a tax-deferred
basis. A feature of the Policy distinguishing it from other similar non-annuity
investments is its ability to make annuity payments to you or, upon your death,
to pay a death benefit to your Beneficiary. Some key rights and benefits under
the Policy are summarized in this Prospectus; however, you must refer to the
Policy for the actual terms of the Policy. You may obtain a copy of the Policy
from us. The Policy can be purchased as a tax qualified or nonqualified annuity.
The Policy remains in force until surrendered for its Cash Surrender Value, or
all proceeds have been paid under a Payout Option, or as a death benefit, or
upon termination.
19
<PAGE>
o POLICY APPLICATION AND ISSUANCE
To purchase a Policy, you must submit an application and a minimum initial
Purchase Payment. A tax-nonqualified Policy usually will be issued only if you
are age 0 through 85 (0 through 79 in Pennsylvania), and a tax-qualified Policy
if you are age 0 through 70 1/2. We may reject any applicant or Purchase
Payment.
If your application is in good order upon receipt, we will credit your
initial net Purchase Payment to the Accumulation Value within 2 business days
after the later of the date we receive your application or your payment. If the
application is incomplete or there are other reasons we cannot meet this two day
objective, we will contact you within 5 business days to explain the delay; at
that time we will refund your initial Purchase Payment unless you consent to our
retaining it to apply it to your Policy once all Policy issuance requirements
are met. The date we credit your initial net Purchase Payment to your Policy's
Accumulation Value is the Date of Issue.
o Application in Good Order. All questions must be answered, but particularly
note these requirements:
- Your full name, social security number, and date of birth must be
included.
- Your Purchase Payment allocations must be completed, be in whole
percentages, and total 100%.
- Initial Purchase Payment must meet minimum Purchase Payment requirements.
- Your signature and your agent's signature must be on the application.
- Identify the type of plan, whether it is nonqualified or qualified.
- City, state, and date application was signed must be completed.
o Purchase Payment Requirements
Your Purchase Payment checks should be made payable to "United of Omaha
Life Insurance Company" and sent to us. We may postpone crediting any payment
made by check to your Policy's Accumulation Value until it has been honored by
our and your bank. Payment by certified check, banker's draft, or cashier's
check will be promptly applied. Under our Electronic Fund Transfer program, you
may select a monthly payment schedule for us to automatically deduct Purchase
Payments from your bank account or other sources.
Initial Purchase Payment:
- - The only Purchase Payment required. All others are optional.
- - Must be at least $5,000; $2,000 if payment is made via our Electronic Fund
Transfer program. We have the right to change these payment requirements.
Additional Purchase Payments:
- - Must be at least $500; $100 if payments are made via our Electronic Fund
Transfer program. We have the right to change these payment requirements.
- - A separate Withdrawal Charge period applies to each Purchase Payment.
- - Will not be accepted beginning on the Policy anniversary following your
88th birthday.
o Allocating Your Purchase Payments
You must allocate your Purchase Payments to one or more of the variable or
fixed investment options. Initial allocations in your Policy application will be
used for additional Purchase Payments until you change your allocation. If you
do not specify any allocation, we will not accept your Purchase Payment.
- - Allocations must be in whole percentages, and total 100%.
- - The minimum allocation amount is $500 ($100 under the Electronic Fund
Transfer program).
- - Change your allocation by sending us Written Notice or through an
authorized Telephone Transaction. The change will apply to payments
received on or after the date we receive your Notice or authorization.
- - All Purchase Payments will be allocated pursuant to your instructions on
record with us, except your initial Purchase Payment and any additional
Purchase Payments received during your Policy's Free Look Period may be
subject to special requirements.
Right to Examine Period Allocations:
Return of Value States. In states that permit us to refund your
Accumulation Value upon your cancellation of the Policy during the Right to
Examine period, we will allocate your initial Purchase Payment to your
selected Subaccounts on the Date of Issue.
Return of Purchase Payment States. In states that require us to refund
at least your full Purchase Payment upon your cancellation of the Policy
during the Right to Examine period, we will hold the portion of your
initial Purchase Payment (and of any additional Purchase Payments made
during the Right to Examine period) allocated to the Variable Account in
the Money Market Subaccount for the applicable Right to Examine period
specified by the state of issue, plus 5 days from the date we mail the
Policy to you. (Since the Right to Examine period is measured from the date
you receive the Policy, the extra 5 days is to allow for estimated time
needed to deliver the Policy.) At the end of that period, if you decide to
keep your Policy, we will invest your initial Purchase Payment in the
Subaccounts pursuant to your application instructions.
20
<PAGE>
o ACCUMULATION VALUE
On your Policy's Date of Issue, the Accumulation Value equals the initial
Purchase Payment less any charge for applicable premium taxes. On any Valuation
Date thereafter, the Accumulation Value equals the sum of the values in the
Variable Account, the Fixed Account and the Systematic Transfer Account. The
Accumulation Value is expected to change from Valuation Period to Valuation
Period, reflecting the expenses and investment experience of (or interest
credited to) the selected Policy investment options as well as the Policy's
deductions for charges.
o Variable Account Value.
The Accumulation Value for each Subaccount equals:
(a) the current number of Accumulation Units in the Subaccount for
the Policy; multiplied by
(b) the current Accumulation Unit value.
A net Purchase Payment or transfer allocated to a Subaccount is converted
into Accumulation Units by dividing it by the Accumulation Unit value for the
Valuation Period during which the net Purchase Payment or transfer is allocated
to the Variable Account. The initial Accumulation Unit value for each Subaccount
was set at $10 when the Subaccount was established. The Accumulation Unit value
may increase or decrease from one Valuation Date to the next.
The Accumulation Unit value for a Subaccount on any Valuation Date is
calculated as follows:
(a) The net asset value per share of the Portfolio multiplied by the
number of shares held in the Subaccount, before the purchase or
redemption of any shares on that date; minus
(b) the cumulative unpaid charge for the Mortality and Expense Risk
Charge and Administrative Expense Charge; minus
(c) any applicable charge for federal and state income taxes, if
any; the result divided by
(d) the total number of Accumulation Units held in the Subaccount on
the Valuation Date, before the purchase or redemption of any
Accumulation Units on that day.
Positive investment experience of the applicable Portfolio will increase the
Accumulation Unit values and negative investment experience will decrease the
Unit values. Expenses and deductions will have a negative effect on Unit values.
o Fixed Account Value.
The Accumulation Value of the Fixed Account on any Valuation Date equals:
(a) the Accumulation Value at the end of the preceding Policy Month;
plus
(b) any net Purchase Payments credited since the end of the previous
Policy Month; plus
(c) any transfers from the Subaccounts credited to the Fixed Account
since the end of the previous Policy Month; minus
(d) any transfers from the Fixed Account to the Subaccounts since the
end of the previous Policy Month; minus
(e) any partial withdrawal and Withdrawal Charge taken from the Fixed
Account since the end of the previous Policy Month; plus
(f) interest credited on the Fixed Account balance.
o Systematic Transfer Account Value.
The Accumulation Value of the Systematic Transfer Account on any Valuation
Date equals:
(a) the value at the Issue Date; plus
(b) any transfers from the Systematic Transfer Account to the
Subaccounts since the end of the previous Policy Month; plus
(c) interest credited on the Systematic Account balance.
21
<PAGE>
o TELEPHONE TRANSACTIONS
<TABLE>
<CAPTION>
Transactions Permitted Our Rules:
<S> <C>
o Transfers. o Prior Written Notice authorization to us.
o Partial Withdrawals of $10,000 or less by o Must be received by close of the New York Stock Exchange
the Owner (may be restricted in ("NYSE")(usually 3 p.m. Central Time); if later, the transaction will
community property states). be processed the next day the NYSE is open.
o Purchase Payment Allocations. o Will be recorded for your protection.
o For security, you must
provide your social
security number and/or
other identification
information.
o May be discontinued at any time as to some or all Owners.
We are not liable for following authorized Telephone Transaction
instructions we reasonably believe to be genuine.
</TABLE>
o DEATH OF ANNUITANT
Upon the Annuitant's death, you may name a new Annuitant. If the Owner is
the Annuitant, upon the Owner's death, the Policy's applicable death benefit
becomes payable to the named Beneficiary(ies). If the Beneficiary is the Owner's
spouse, upon the Owner's death the spouse may be permitted under federal tax law
to become the Owner of the Policy and to name an Annuitant and different
Beneficiaries.
o MINOR OWNER OR BENEFICIARY
A minor may not own the Policy solely in the minor's name and cannot
receive payments directly as a Policy Beneficiary. Contrary to common belief, in
most states parental status does not automatically give parents the power to
provide an adequate release to us to make Beneficiary payments to the parent for
the minor's benefit. A minor can "own" a Policy through the Trustee of a Trust
established for the minor's benefit, or through the minor's named and court
appointed guardian who own the Policy in their capacity as Trustee or Guardian.
Where a minor is a named Beneficiary, we are able to pay the minor's beneficiary
share to a minor's Trustee or Guardian. Some states allow us to make such
payments up to a limited amount directly to parents. Parents seeking to have a
minor's interest made payable to them for the minor's benefit are encouraged to
check with their local court to determine the process to be appointed as the
minor's guardian; it is often a very simple process that can be accomplished
without the benefit of an attorney. If there is no adult representative able to
give us an adequate release for payment of the minor's Beneficiary interest, we
retain the minor's interest on deposit until the minor attains the age of
majority.
o POLICY TERMINATION
We may cancel your Policy upon 60 days' notice to you if the Accumulation
Value falls below $500. This cancellation would be a full surrender of the
Policy.
- -----------------------------------------------------------
EXPENSES
The charges and fees described below compensate us for our expenses in
distributing the Policy, bearing mortality and expense risks under the Policy,
and administering the investment options and the Policy. Except where stated
otherwise, charges and fees shown are the maximum we will charge, and some
actual expenses may be less. Each Series Fund also deducts expenses from each
Portfolio; those expenses are described in each Series Fund prospectus.
o WITHDRAWAL CHARGE
--------------------------------------------------------------------------
Years Since Receipt of Purchase Payment 1 2 3 4 5 6 7 8+
--------------------------------------------------------------------------
Applicable Withdrawal Charge Percentage 7% 6% 5% 4% 3% 2% 1% 0%
--------------------------------------------------------------------------
22
<PAGE>
We will apply a Withdrawal Charge, expressed as a percentage of any
Purchase Payment surrendered or withdrawn, upon a full surrender or partial
withdrawal. This charge partially covers our distribution expenses, including
commissions and other promotional expenses. A Withdrawal Charge may also be
deducted from amounts applied to provide annuity payments. The Withdrawal Charge
Percentage varies depending upon the number of years elapsed since the date the
Purchase Payment was made. The amount of a partial withdrawal plus the
Withdrawal Charge is deducted from the Accumulation Value on the date we receive
your withdrawal request. Partial withdrawals (including any charge) are deducted
from the Subaccounts and the Fixed Account or the Systematic Transfer Account on
a pro-rata basis, unless you instruct us otherwise.
DETERMINE THE AMOUNT OF THE WITHDRAWAL CHARGE BY MULTIPLYING THE AMOUNT OF EACH
PURCHASE PAYMENT WITHDRAWN BY THE APPLICABLE WITHDRAWAL CHARGE PERCENTAGES. THE
OLDEST PURCHASE PAYMENT IS CONSIDERED TO BE WITHDRAWN FIRST; THE NEXT OLDEST
PURCHASE PAYMENT IS CONSIDERED TO BE WITHDRAWN NEXT, AND SO ON (THIS IS A
"FIRST-IN, FIRST-OUT" PROCEDURE). ALL PURCHASE PAYMENTS ARE DEEMED TO BE
WITHDRAWN BEFORE ANY EARNINGS.
The Withdrawal Charge will not cover our cost of distributing the Policies.
Any deficiency is met from our general funds, including amounts derived from the
Mortality and Expense Risk Charge (described below).
o Free Withdrawals
Each Policy Year, subject to limits on transfers from the Fixed Account,
you can withdraw up to 15% of Accumulation Value at the time of the first
withdrawal each year without incurring a Withdrawal Charge. A Withdrawal Charge
is not applied on the Annuity Starting Date if you apply the Accumulation Value
after the second Policy anniversary to provide lifetime annuity payments under
Payout Option 4 (but does apply to Proceeds placed under other Payout Options.)
No Withdrawal Charge is charged upon death benefit payments or, under
tax-qualified Plans, any refund of contributions paid in excess of your
deductible amounts.
o Withdrawal Charge Waivers
We will waive the Withdrawal Charge upon partial withdrawals and surrenders
in the following situations. Each waiver may not be available in all states.
Nursing Home Waiver. Any withdrawal made pursuant to your confinement, upon
the recommendation of a licensed physician, to the following facilities for 30
or more consecutive days: (a) a hospital licensed or recognized as a general
hospital by the state in which it is located; (b) a hospital recognized as a
general hospital by the Joint Commission on the Accreditation of Hospitals; (c)
a Medicare certified hospital; (d) a state licensed nursing home with a
registered nurse on duty 24 hours a day; and (e) a Medicare certified long term
care facility. This waiver only applies to partial withdrawals and surrenders
requested no later than 91 days of the last day of confinement to such facility.
Proof of confinement must be provided. The Nursing Home Waiver is not available
if any Owner is confined to a nursing home or hospital facility on the Date of
Issue.
We will not accept any additional Purchase Payments under your Policy once
this Waiver is elected.
Disability Waiver. Any withdrawal where you are physically disabled. We may
require proof of such disability, including written confirmation of receipt and
approval of any claim for Social Security Disability Benefits. Proof of
continued disability may be required through the date of any partial withdrawal
or surrender. We reserve the right to have any Owner claiming such disability
examined by a licensed physician.
We will not accept any additional Purchase Payments under a Policy once
this Waiver has been elected. The Disability Waiver is not available if any
Owner is receiving Social Security Disability Benefits on the Date of Issue or
is age 65 or older.
Terminal Illness Waiver. Any withdrawal where you are diagnosed with a
terminal illness. A terminal illness is a medical condition that, with a
reasonable degree of medical certainty, will result in your death within 12
months or less. We may require proof of such illness including written
confirmation from a licensed physician. We reserve the right to have an Owner
diagnosed with such illness examined by a licensed physician.
We will not accept any additional purchase payments under a Policy once
this Waiver has been elected. The Terminal Illness Waiver is not available if
any Owner is diagnosed with a terminal illness prior to or on the Date of Issue.
Unemployment Waiver. Any withdrawal in the event you become unemployed. The
Unemployment Waiver is available upon submission of a determination letter from
a state Department of Labor indicating you received unemployment benefits for at
least 60 consecutive days prior to the election of such waiver. The Unemployment
Waiver may be exercised only once and is not available if any Owner or Annuitant
is receiving unemployment benefits on the Date of Issue.
Transplant Waiver. Any withdrawal if you undergo transplant surgery as an
organ donor or recipient for the following body organs: heart, liver, lung,
kidney, pancreas; or as a recipient of a bone marrow transplant. Within 91 days
of surgery, you must submit a letter from a licensed physician (who is not the
Owner of this policy) stating that you underwent transplant surgery for any of
these organs. We reserve the right to have you examined by a physician of our
choice and at our expense. This waiver may be exercised only once per transplant
surgery.
23
<PAGE>
Residence Damage Waiver. Any withdrawal if your primary residence suffers
physical damage in the amount of $50,000 or more. To claim this waiver, send us
a certified copy of a licensed appraiser's report stating the amount of the
damage. This certified copy must be submitted with 91 days of the date of the
appraiser's report. We reserve the right to obtain a second opinion by having
the affected residence inspected by a licensed appraiser of our choice and at
our expense, and to rely upon our appraiser's opinion.
This waiver may be exercised only once per occurrence.
Death of Spouse or Minor Dependent Waiver. Withdrawals of the following
percentage of Accumulation Value made within six months of your spouse's or
minor dependent(s)' death: death of spouse, 50%; death of minor dependent(s),
25%. We must receive proof of death. This waiver may be exercised once for a
spouse and once for each minor dependent, subject to no more than 50% of the
Accumulation Value being withdrawn pursuant to this waiver each year. Subsequent
withdrawals, or withdrawals above the waiver limit, are subject to the
Withdrawal Charge.
1% ANNUAL RATE, DEDUCTED DAILY FROM NET ASSETS IN THE VARIABLE ACCOUNT.
o MORTALITY and EXPENSE RISK CHARGE
We impose a daily charge to compensate us for the mortality and expense
risks we have under the Policy. This charge is equal to an annual rate of 1%
(.0027535% daily) of the value of the net assets in the Variable Account, and
will not increase. This charge is reflected in the accumulation unit values for
each Subaccount.
<PAGE>
Our mortality risk arises from our obligation to make annuity payments and
to pay death benefits prior to the Annuity Starting Date. The mortality risk we
assume is that annuitants will live longer than we project, so our cost in
making annuity payments will be higher than projected. However, an Annuitant's
own longevity, or improvement in general life expectancy, will not affect the
periodic annuity payments the Payee receives under your Policy.
Our expense risk is that our costs to administer your Policy will exceed
the amount we collect through Administrative Charges.
If the Mortality and Expense Risk Charge does not cover our costs, we bear
the loss, not you. If the charge exceeds our costs, the excess is profit to us.
We expect a profit from this charge, but the amount of our charge is sensitive
to competitive market pressures. If the Withdrawal Charge does not cover our
Policy distribution costs, the deficiency is met from our general corporate
assets, which may include amounts, if any, derived from this Mortality and
Expense Risk Charge.
o ADMINISTRATIVE CHARGES POLICY FEE $30 ANNUALLY
------------- -------------------------------
ADMINISTRATIVE 0.20% ANNUAL RATE (0.0005485%
EXPENSE CHARGE DAILY), DEDUCTED DAILY FROM NET
ASSETS OF EACH SUBACCOUNT
These charges help cover our cost to administer your Policy and will not
increase. The Administrative Expense Charge is deducted from each Subaccount in
the same proportion that the value in each Subaccount bears to the total value
in the Variable Account.
We deduct the Policy Fee from the your Policy's Accumulation Value on the
last Valuation Date of each Policy Year prior to the Annuity Starting Date (and
upon a complete surrender). This fee is levied by canceling Accumulation Units.
This fee is waived if your Policy's Accumulation Value exceeds $50,000 on the
last Valuation Date of the applicable Policy Year, and is waived for employees
of ours or our affiliated Mutual of Omaha Companies.
o ENHANCED DEATH BENEFIT CHARGES 0.35% ANNUAL RATE, OR LESS,
OF THE AVERGE DEATH BENEFIT AMOUNT.
This charge compensates us for expenses and increased risks associated with
providing the Enhanced Death Benefit. If you elect the Enhanced Death Benefit
Amendment, we deduct a daily charge equivalent to the 0.35% annual rate from
your Variable Account assets. (If you elected this benefit prior to May 1, 1998,
we deduct this charge by canceling Accumulation Units at each Policy anniversary
and at surrender.)
o TRANSFER FEE $10 PER SUBACCOUNT TRANSFER AFTER 12 FREE
TRANSFERS EACH POLICY YEAR.
The first 12 transfers from Subaccounts, and all transfers from the Fixed
Account or the Systematic Transfer Account are free. The Transfer Fee is
deducted from the amount transferred. Simultaneous requests are treated as a
single request. We will not impose the fee for transfers that are not the result
of your request. Dollar Cost Averaging, Asset Allocation and Rebalancing program
transfers do not count toward the 12 free transfers.
24
<PAGE>
o PREMIUM TAX CHARGE VARIES, UP TO 3.5%.
Some states and municipalities levy a tax on annuity contracts issued by
insurance companies, ranging up to 3.5% of your premium. These tax rates, and
the timing of the tax, vary and may change. Depending upon when the tax is paid
by us in the state governing your Policy, if any, we deduct a charge for the tax
(except in Oregon) either (a) from Purchase Payments as they are received, (b)
upon surrender of the Policy, (c) upon your death, or (d) upon applying the
Policy proceeds to a Payout Option.
o OTHER TAXES CURRENTLY, NONE
No charges are currently made for taxes other than premium taxes. We
reserve the right to levy charges in the future for taxes or other economic
burdens resulting from taxes that we determine are properly attributable to the
Variable Account.
o OTHER EXPENSES; SEE EACH SERIES FUND'S
INVESTMENT ADVISORY FEES PROSPECTUS.
Each Series Fund Portfolio is responsible for its own expenses. The net
assets of each Portfolio reflects deductions for investment advisory fees and
other expenses. These charges are disclosed in each Series Fund's prospectus
which accompany this Prospectus.
- -----------------------------------------------------------
POLICY DISTRIBUTIONS
There are several ways to take all or part of your investment out of your
Policy, both before and after the Annuity Starting Date. Tax penalties and
Withdrawal Charges may apply to amounts taken out of your Policy before the
Annuity Starting Date. Your Policy also provides several kinds of death benefits
to be paid upon your death prior to the Annuity Starting Date.
o WITHDRAWALS
You may withdraw all or part of your Policy's Cash Surrender Value prior to
the Annuity Starting Date. Amounts withdrawn, except for "Free" Withdrawals
described below, are subject to a Withdrawal Charge. Following a full surrender
of the Policy, or at any time the Accumulation Value is zero, all your rights in
the Policy end.
"Free" Withdrawals
Each Policy Year, subject to limits on transfers from the Fixed Account,
you may withdraw up to 15% of your Policy's Accumulation Value, as of the date
of the first withdrawal that year, without deduction of a Withdrawal Charge. The
15% amount is determined when the first withdrawal is made; additional Purchase
Payments contributed later in that Policy Year or on the date of your request
are not included in determining that 15% amount.
Systematic Withdrawal Plan
The Systematic Withdrawal Plan allows you to automatically withdraw
payments of a predetermined dollar amount or fixed percentage of Accumulation
Value from a specified investment option monthly, quarterly, semi-annually or
annually. Although this Plan mimics annuity payments, each distribution is a
withdrawal that may be taxable and subject to Charges; you may wish to consult a
tax adviser before requesting this Plan.
Our Rules
o Withdrawals must be by Written Notice. Total surrender requires you to
also return your Policy to us. The request for "Systematic Withdrawal
Plan" form must specify a date for the first payment, which must be at
least 30 but not more than 90 days after the form is received by us.
o Minimum withdrawal is $500 from any investment option. ($100 for the
Systematic Withdrawal Plan.)
o Any partial withdrawal must leave Accumulation Value of at least $500.
If less than $500 remains in an investment option, we will treat your
withdrawal request as a full surrender of that investment option.
o No more than a pro rata amount (or 10% of the Fixed Account, whichever
is less) may be withdrawn from the Fixed Account or Systematic
Transfer Account for any partial withdrawal. (Withdrawals from the
Systematic Transfer Account will not affect the minimum monthly
transfer amount from that Account, so will cause the total amount to
be transferred to be complete in less time than originally
anticipated.) Only one withdrawal per year is allowed out of the Fixed
Account.
o Withdrawals result in cancellation of Accumulation Units from each
applicable Subaccount and deduction of Accumulation Value from the
Fixed Account or Systematic Transfer Account in the ratio that the
value of each such investment option bears to the Policy's total
Accumulation Value (i.e., pro rata from each applicable investment
option). If you do not specify which investment option(s) to take the
withdrawal from, it will be taken from each investment option in the
proportion that the Accumulation Value in each investment option bears
to the Policy's total Accumulation Value.
o Because a Withdrawal Charge and a Premium Tax Charge may apply to
withdrawals, the total amount paid to you upon total surrender of the
Policy (taking any prior partial withdrawals into account) may be less
than the total Purchase Payments made.
WITHDRAWALS MAY BE SUBJECT TO:
- INCOME TAX
- PENALTY TAX
- PREMIUM TAX CHARGE
- WITHDRAWAL CHARGE
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o ANNUITY PAYMENTS
A primary function of an annuity contract, like this Policy, is to provide
annuity payments to the Payee(s). The level of annuity payments is determined by
your Policy Accumulation Value, the Annuitant's sex (except where prohibited by
law) and age, and the annuity Payout Option selected.
Annuity payments may be subject to a Withdrawal Charge.
ANNUITY PAYMENTS:
- MAY BE FIXED OR VARIABLE:
- MAY BE SUBJECT TO WITHDRAWAL
CHARGE IF MADE BEFORE THE 2ND
YEAR OF THE LAST PURCHASE PAYMENT.
- MAY BE TAXABLE, AND IF
PREMATURE, SUBJECT TO A TAX
PENALTY.
A Withdrawal Charge
is not applied on the Annuity Starting Date if you apply the Accumulation Value
after the second Policy anniversary to provide lifetime annuity payments under
Payout Option 4 (but does apply to Proceeds placed under other Payout Options.)
Annuity payment Payees must be individuals receiving payments in their own
behalf, unless otherwise agreed to by us. Any annuity Payout Option is only
effective once we acknowledge it. We may require initial and ongoing proof of
the Owner's or Annuitant's age or survival. Unless you specify otherwise, the
Payee is the Annuitant.
Fixed Annuity Payments. Fixed annuity payments pay a fixed rate of
interest at or higher than a guaranteed effective annual rate of 3%.
Annuity Purchase Value is transferred to our general account to fund fixed
annuity payments. We have sole discretion whether or not to pay a higher
rate for Payout Options 1,2,3, or 6. Current immediate annuity rates for
the same class of annuities are used if higher than the guaranteed amounts
(guaranteed amounts are based upon the tables contained in the Policy). The
guaranteed amounts are based on the 1983 Table "a" mortality table, and 3%
guaranteed interest rate. Current amounts, and further information, may be
obtained from us.
Fixed annuity payments are available under all six annuity Payout
Options. The amount of each fixed annuity payment is set and begins on the
Annuity Starting Date, and does not change.
Variable Annuity Payments. To obtain variable annuity payments, you
allocate Annuity Purchase Value to variable investment options. Variable
annuity payments, other than the first, vary in amount depending upon the
investment performance of the applicable Subaccounts.
The first annuity payment amount is determined by applying the
Annuity Purchase Value allocated to variable annuity payments to the
annuity table applicable to the Payout Option chosen. The tables are
determined from the 1983 Table "a" mortality table with an assumed
investment rate of 4%. If more than one subaccount has been selected, the
Annuity Purchase Value of each Subaccount is applied separately to the
annuity table to determine the amount of the first annuity payment
attributable to that particular Subaccount.
Subsequent annuity payment amounts (after the first) is the sum of:
the number of Variable Annuity Units for each Subaccount as determined for
the first annuity payment multiplied by the value of a Variable Annuity
Unit for that Subaccount 10 days prior to the date the variable annuity
payment is due. This amount may increase or decrease from month to month.
If the net investment return of a Subaccount for a payment period is
equal to the pro-rated portion of the 4% annual assumed investment rate,
the variable annuity payment attributable to that Subaccount for that
period will equal the payment for the prior period. To the extent that such
net investment return exceeds an annualized rate of 4% for a payment
period, the payment for that period will be greater than the payment for
the prior period and to the extent that such return for a period falls
short of an annualized rate of 4%, the payment for that period will be less
than the payment for the prior period.
Only Payout Options 2,4 and 6 are available for variable annuity
payments.
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o Annuity Starting Date
You select the Annuity Starting Date on the Policy application. This is the
date annuity payments begin. This date may be as late as the Annuitant's 95th
birthday (85th in Pennsylvania). Tax qualified Policies may require an earlier
Annuity Starting Date. You may change this date be sending Written Notice for
our receipt at least 30 days before the then current Annuity Starting Date.
4 TRANSFERS ARE ALLOWED
EACH POLICY YEAR
o Transfers between fixed and variable investment options
After the Annuity Starting Date, you may transfer amounts applied to
variable annuity payments from one Subaccount to another or to the Fixed
Account. Transfers use the Variable Annuity Unit values for the Valuation Period
during which we receive your transfer request. A designated number of Variable
Annuity Units of the designated Subaccount(s) is exchanged for another
Subaccount(s) Variable Annuity Units, the value of which is such that the dollar
amount of an annuity payment made on the date of the exchange would be
unaffected by the exchange.
THE LONGER THE GUARANTEED OR PROJECTED
ANNUITY PAYOUT OPTION PERIOD, THE
LOWER THE AMOUNT OF EACH ANNUITY PAYMENT.
o Selecting an annuity Payout Option
You choose the annuity Payout Option on your Policy application. You may
change your selection during your life by sending Written Notice for our receipt
at least 30 days before the Annuity Starting Date. If no selection is made by
then, we will apply Accumulation Value in the Variable Account to provide
variable annuity payments, and Accumulation Value in the Fixed Account to
provide fixed annuity payments, and annuity payments will be made under Option 4
providing lifetime income with payments guaranteed for 10 years. We may pay your
Policy proceeds in one sum if they are less than $2,000, or when the Payout
Option chosen would result in periodic payments of less than $20.
If you die before the Annuity Starting Date (and the Policy is in force),
your Beneficiary may elect to receive the death benefit under one of the Payout
Options (unless applicable law or a settlement agreement dictate otherwise).
o Annuity Payout Options
If variable annuity payments are being made under Option 2 or 6 and do not
involve life contingencies, you may surrender your Policy and receive the
commuted value of any unpaid annuity payments.
When the Owner dies, we will pay any unpaid guaranteed payments to your
Beneficiary. Upon the last Payee's death, we will pay any unpaid guaranteed
payments to that Payee's estate.
NOTE: UNLESS YOU ELECT A PAYOUT OPTION WITH A GUARANTEED PERIOD OR OPTION
1, IT IS POSSIBLE ONLY ONE ANNUITY PAYMENT WOULD BE MADE UNDER THIS ANNUITY
PAYMENT OPTION IF THE ANNUITANT DIED BEFORE THE DUE DATE OF THE SECOND ANNUITY
PAYMENT, ONLY TWO ANNUITY PAYMENTS WOULD BE MADE IF THE ANNUITANT DIED BEFORE
THE DUE DATE OF THE THIRD ANNUITY PAYMENT, ETC.
Part or all of an annuity payment may be taxable as ordinary income. If, at
the time annuity payments begin, you have not given us Written Notice to not
withhold federal income taxes, we must be law withhold such taxes from the
taxable portion of each annuity payment and remit it to the Internal Revenue
Service. (Withholding is mandatory for tax qualified Policies.)
1) Proceeds Held on Deposit at Interest. While Proceeds remain on deposit, we
annually credit interest to the Proceeds. The interest may be paid to the
Payee or added to the amount on deposit.
2) Income of a Specified Amount. Proceeds are paid in monthly installments of
a specified amount over at least a 5 year period until Proceeds, with
interest, have been fully paid.
3) Income for a Specified Period. Periodic payments of Proceeds are paid for
the number of years chosen. If no other frequency is selected, payments
will be made monthly. Monthly incomes for each $1,000 of Proceeds, which
include interest, are shown in a table in the Policy.
4) Lifetime Income. Proceeds are paid as monthly income during the Annuitant's
life. The amount of the monthly income annuity payment will be the amount
computed using either the Lifetime Monthly Income Table set forth in the
Policy (based on the 1983 Table "a" mortality table and interest at 3%,
adjusted to age last birthday) or, if more favorable to the Annuitant, our
then current lifetime monthly income rates for payment of Proceeds. If a
variable Payout Option is chosen, all variable annuity payments, other than
the first variable annuity payment, will vary in amount according to the
investment performance of the applicable variable investment options.
Guarantees available:
Guaranteed Period - An amount of monthly income annuity payments is
determined that we guarantee to pay for at least 10 years, and
thereafter during the Annuitant's life.
Guaranteed Amount - An amount of monthly income annuity payment is
determined that we guarantee to pay for the rest of the Annuitant's
life.
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5) Lump Sum. Proceeds are paid in one sum.
6) Alternative Schedule. We may be able to accommodate making annuity payments
under other options, including joint and survivor periods. Contact us for
more information.
A DEATH BENEFIT IS PAYABLE UPON:
- PURCHASE PAYMENT CHECK OR
DRAFT BEING HONORED (I.E.,
YOUR POLICY IS IN FORCE)
- RECEIPT OF DUE PROOF OF DEATH
OF THE FIRST OWNER TO DIE;
- ELECTION OF AN ANNUITY PAYOUT
OPTION; AND
- PROOF THAT SUCH OWNER DIED BEFORE
ANNUITY PAYMENTS BEGIN.
o DEATH BENEFITS
We will pay the death benefit within 7 days after we receive necessary
documentation of your death, or as soon thereafter as we have sufficient
information about the Beneficiary to make the payment. Death Benefits may be
paid pursuant to an annuity Payout Option (including a lump sum payment) to the
extent allowed by applicable law and any settlement agreement in effect at your
death. If the Beneficiary does not make an annuity Payout Option election within
60 days of our receipt of Due Proof of your death, we will issue a lump sum
payment to the Beneficiary.
If an Owner of the Policy is a corporation, trust or other nonindividual,
we treat the primary Annuitant as an Owner for purposes of the death benefit.
The "primary Annuitant" is that individual whose life affects the timing or the
amount of the death benefit payout under the Policy. A change in the primary
Annuitant will be treated as the death of an Owner.
If the Annuitant is an Owner or joint Owner, the Annuitant's death is
treated as the Owner's death.
(If the Annuitant is not an Owner and the Annuitant dies before the Annuity
Starting Date, the Owner may name a new Annuitant if such Owner(s) is not a
corporation or other non-individual or if such Owner is the trustee of an
Internal Revenue Code Section 401(a) retirement plan. If the Owner does not name
a new Annuitant, the Owner will become the Annuitant.)
We will deduct any applicable premium tax not previously deducted from the
death benefit payable.
o Standard Death Benefit
If you or a joint Owner dies before the Annuity Starting Date (and the
Policy is in force), the Policy will terminate, and we will pay a death benefit
to your Beneficiary. The death benefit equals the largest of:
1) your Policy's Accumulation Value (without deduction of the Withdrawal
Charge) on the later of the date we receive Due Proof of Death and an
annuity Payout Option election less any charge for applicable premium
taxes; or
2) the sum of net Purchase Payments, less partial withdrawals. (If you or a
joint Owner dies on or after the Annuity Starting Date and before all
Proceeds have been paid, no death benefit is payable, but any remaining
Proceeds will be paid at least as rapidly as under the annuity Payout
Option then in effect.)
o Enhanced Death Benefit
The Enhanced Death Benefit is only available to Owners under age 80, and
not available for non-person owners. There is a charge for the Enhanced Death
Benefit which will never exceed an annual rate of 0.35% of the Average Death
benefit Amount. Once elected, the Enhanced Death Benefit cannot be revoked.
If you elect the Enhanced Death Benefit Amendment to the Policy and you or
any joint Owner dies before attaining age 81 and a such death qualifies for a
Standard Death Benefit, we will pay an Enhanced Death Benefit equal to the
greatest of:
1) the Accumulation Value as of the end of the Valuation Period during
which we receive due proof of death and an election of an annuity Payout
Option;
2) the greatest Anniversary Value6/ plus subsequent Purchase Payments, less
any subsequent partial withdrawals; and
3) the sum of all net Purchase Payments, less any partial withdrawals,
accumulated at a 4.5% annual rate of interest up to a maximum of two
times each Purchase Payment.
If you elect the Enhanced Death Benefit Amendment to the Policy and you or
any Joint Owner dies after attaining age 81 and such death qualifies for a
Standard Death Benefit, we will pay an Enhanced Death Benefit equal to the
greatest of:
1) the Accumulation Value as of the end of the Valuation Period during
which we receive due proof of death and an election of an annuity Payout
Option;
2) the greatest Anniversary Value prior to the last Policy anniversary
before the Owner attained age 81, plus any subsequent Purchase Payments
and less any subsequent partial withdrawals; and
3) the sum of all net Purchase Payments paid prior to the last Policy
anniversary before the Owner attained age 81, less any partial
withdrawals accumulated at a 4.5% annual rate of interest up to a
maximum of two times each purchase payment. If the Enhanced Death
Benefit payable equals (3), we will add to the death benefit amount any
Purchase Payments paid after the last Policy anniversary before the
Owner attained age 81.
6/ The Anniversary Value equals the Accumulation Value on a Policy
anniversary and any subsequent Purchase payments less partial
withdrawals and undeducted premium tax.
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o Accidental Death Benefit
If you or any Joint Owner die from bodily injury sustained in a common
carrier accident, we will pay double the Standard Death Benefit or the Enhanced
Death Benefit, as applicable, instead of the amount otherwise payable.
For the Accidental Death Benefit to be payable, bodily injury must be
sustained by the Owner while a passenger in a common carrier. Death must be
independent of any sickness or other causes and must occur within 90 days of the
date of the accident. We will pay only the Standard Death Benefit or the
Enhanced Death Benefit, if applicable, instead of the Accidental Death Benefit,
if the Owner's death results from the following: (a) suicide; (b) an act of
declared or undeclared war; (c) an injury received while intoxicated; (d) an
injury received while the owner is under the influence of a controlled
substance, unless administered on the advice of a physician; or (e) an injury
received while committing a felony or engaged in an illegal occupation. The
Accidental Death Benefit may not be available in all states.
o Beneficiary
You may change your Beneficiary by sending Written Notice to us, unless the
named Beneficiary is irrevocable. Once we record and acknowledge the change, it
is effective as of the date you signed the Written Notice. The change will not
apply to any payments made or other action taken by us before recording. If the
named Beneficiary is irrevocable, you may change the named Beneficiary only by
Written Notice signed by both you and the Beneficiary. If more than one named
Beneficiary is designated, and you fail to specify their interests, they will
share equally.
If there are joint Owners, the surviving joint Owner will be deemed the
Beneficiary, and the Beneficiary named in the Policy application or as
subsequently changed will be deemed the contingent Beneficiary. If both joint
Owners die simultaneously, the death benefit will be paid to the contingent
Beneficiary.
If the Beneficiary is the your surviving spouse, the spouse may elect
either to receive the death benefit, in which case the Policy will terminate, or
to continue the Policy in force with the spouse as Owner.
If the named Beneficiary dies before you, then your estate is the
Beneficiary until you name a new Beneficiary.
o IRS Required Distribution
Federal law requires that if your Policy is tax non-qualified and you die
before the Annuity Starting Date, then the entire value of your Policy must be
distributed within 5 years of your death. Therefore, any death benefit must be
paid within 5 years after your death. The 5-year rule does not apply to that
portion of the Proceeds which (a) is for the benefit of an individual
Beneficiary; and (b) will be paid over the lifetime or the life expectancy of
that Beneficiary as long as payments begin not later than one year after the
date of your death. Special rules may apply to your surviving spouse. The
Statement of Additional Information has a more detailed description of these
rules. Other required distribution rules apply to tax qualified Policies.
- -----------------------------------------------------------
FEDERAL TAX MATTERS
- - We only provide general information about certain current federal tax
issues affecting Policies owned by United States natural persons
(except where otherwise stated) and tax-qualified plans. Tax laws and
their application may change. ("Code" refers to the Internal Revenue
Code.)
- - This discussion assumes the Policy qualifies as an annuity under
federal tax law, and assumes any tax-qualified Policy is purchased
with proceeds from and/or contributions under retirement plans that
qualify for the intended Federal income tax treatment.
- - The Statement of Additional Information discusses in greater detail
the requirements for the Policy qualifying as an annuity. Neither this
Prospectus nor the Statement of Additional Information is exhaustive
on the tax laws and regulations that may affect the Policy.
PLEASE CONSULT YOUR OWN LEGAL AND TAX ADVISER FOR ADVICE REGARDING THE
SUITABILITY OF A POLICY FOR YOUR SITUATION, THE APPLICABLE REQUIREMENTS FOR
TAX-QUALIFIED PLANS, ANY TAX LAW CHANGES, AND THE TAX TREATMENT OF THE RIGHTS
AND BENEFITS OF THE POLICY.
A Policy may be purchased on a non-tax qualified basis ("Nonqualified
Policy") or in connection with plans qualifying for favorable tax treatment
("Qualified Policy"). The ultimate effect of Federal income taxes on the amounts
held under a Policy, on annuity payments, and on the economic benefit to you,
the Annuitant, or the Beneficiary depends, among other things, on the type of
retirement plan, on the tax and employment status of the individual concerned
and on the employer's tax status. In addition, certain requirements must be
satisfied in purchasing a Qualified Policy with proceeds from a tax qualified
plan and receiving distributions from a Qualified Policy in order to continue
receiving favorable tax treatment.
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<PAGE>
o TAXATION OF ANNUITIES
We believe that an Owner who is a natural person is generally not taxed on
increases in Policy value until distribution occurs by withdrawing all or part
of the Accumulation Value. Assignment, pledge, or agreement to assign or pledge
any portion of the Accumulation Value (and in the case of a Qualified Policy,
any portion of an interest in the qualified plan) generally is treated as a
distribution. The taxable portion of a distribution is taxed as ordinary income.
An Owner who is not a natural person generally must include in income any
increase in the excess of the Policy's Accumulation Value over the "investment
in the contract" during the taxable year.
"INVESTMENT IN THE CONTRACT" GENERALLY EQUALS
THE AMOUNT OF ANY PURCHASE PAYMENTS PAID BY
OR ON YOUR BEHALF. FOR A TAX-QUALIFIED POLICY,
THIS CAN BE ZERO.
o Surrenders and Partial Withdrawals
With surrenders or partial withdrawals (including systematic withdrawals)
under a Qualified Policy, a ratable portion of the amount received is taxable,
generally based on the ratio of the "investment in the contract" to your total
accrued benefit for balance under the retirement plan. Special tax rules may be
available for certain distributions from a Qualified Policy.
For Nonqualified Policies, partial withdrawals are generally treated as
taxable income to the extent that the Accumulation Value immediately before the
partial withdrawal exceeds the "investment in the contract" at that time. Full
surrenders are treated as taxable income to the extent that the amount received
exceeds the "investment in the contract."
o Annuity Payments
Although tax consequences may vary depending on the Payout Option elected
under the Policy, in general, only the portion of the payout representing the
amount by which the Accumulation Value exceeds the "investment in the contract"
will be taxed; after the "investment in the contract" is recovered, the full
amount of any additional payments is taxable. In general there is no tax on the
portion of each annuity payment representing the same ratio that the "investment
in the contract" bears to the total expected value of the annuity payments for
the term of the payments; however, the remainder of each annuity payment is
taxable. Once the "investment in the contract" is fully recovered, the full
amount of any additional annuity payments is taxable. If annuity payments cease
by reason of the Annuitant's death, any excess of the "investment in the
contract" as of the Annuity Starting Date over the aggregate amount of annuity
payments received on or after the Annuity Starting Date that was excluded from
gross income is allowable as a deduction for the last taxable year of the
Annuitant.
o Penalty Tax
Nonqualified Policy distributions may incur a Federal penalty tax equal to
10% of the amount treated as taxable income. In general, however, there is no
penalty tax on distributions: (a) made on or after the date you attain age 59
1/2; (b) made as a result of your death or disability; (c) received in
substantially equal periodic payments as a life annuity or a joint and survivor
annuity for the lives or life expectancies of you and a "designated
beneficiary"; (d) from a qualified plan; (e) allocable to investment in the
Policy before August 14, 1982; (f) under a qualified funding asset (as defined
in Internal Revenue Code section 130(d)); (g) under an immediate annuity (as
defined in Code Section 72(u)(4)); or (h) which are purchased by an employer on
termination of certain types of qualified plans and which are held by the
employer until the employee separates from service. Other tax penalties may
apply to certain distributions under a Qualified Policy.
o Death Benefits
Generally, Death Benefits are included in the income of the recipient as
follows: (1) if distributed in a lump sum, they are taxed in the same manner as
a full surrender as described above; or (2) if distributed under an annuity
Payout Option, they are taxed in the same manner as annuity payments, as
described above.
o Transfers, Assignments and Exchanges of the Policy
A transfer of ownership of the Policy, the designation of an Annuitant or
Beneficiary other than you, the selection of certain Annuity Starting Dates, or
the exchange of the Policy may result in certain tax consequences to you that
are not discussed here.
o Multiple Policies
All nonqualified deferred annuity contracts we or our affiliates issue you
during any calendar year are treated as one annuity contract for purposes of
determining the amount included in gross income under section 72(e) of the Code.
In addition, the Treasury Department has authority to issue regulations
preventing avoidance of section 72(e) through the serial purchase of annuity
contracts or otherwise. Congress has also indicated that the Treasury Department
may have authority to treat the combination purchase of an immediate annuity
contract and separate deferred annuity contract as a single annuity contract
under its general authority to prescribe rules as may be necessary to enforce
the income tax laws.
o Tax Withholding
Pension and annuity distributions generally are subject to withholding for
the recipient's federal income tax liability at rates that vary according to the
type of distribution and the recipient's tax status. However, recipients
generally may elect to not to have tax withheld from distributions. Effective
January 1, 1994, distributions from certain qualified plans are generally
subject to mandatory withholding. Certain states also require withholding of
state income taxes whenever federal income taxes are withheld.
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o Tax Law Changes
The likelihood of there being any changes in tax law affecting the Policy
is uncertain. Moreover, any change could be retroactive (that is, effective
prior to the date of the change).
o QUALIFIED PLAN USES OF THE POLICY
This Policy may be used with certain qualified plans, as described below.
The rights of any person to qualified plan benefits may be subject to plan terms
and conditions themselves, regardless of the provisions of the Policy. For
instance, some retirement plans are subject to distribution and other
requirements that are not incorporated in the Policy provisions or our
administrative procedures. Determining what those requirements are is your
responsibility, not ours. When issued in connection with the following qualified
plans, we amend the Policy to conform with Internal Revenue Code and State
Insurance Department requirements. The Policy may not be available in all States
for all types of qualified plans.
o Required Distributions
Section 401(a) and 403(b) Distributions generally must begin no later
plans than April 1 of the calendar year following
the calendar year you (the plan
participant) (a) attain age 70 1/2 or (b) retire.
Distributions must be made in a specified form or
manner. If you are a "5 percent owner"(as defined
in the Code), distributions generally must begin
no later than (a) above.
- ------------------------------ -------------------------------------------------
Standard IRAs (Section 408) Distributions generally must
begin no later than April 1 of the calendar year
following the calendar year you (the plan
participant) attain age 70 1/2.
- ------------------------------ -------------------------------------------------
Roth IRAs (Section 408a) Do not require distributions prior to your death.
o Qualified Pension or Profit Sharing Plans
Code Section 401(a) permits employers to establish retirement plans for
employees and also permits self-employed individuals to establish retirement
plans for themselves and their employees.
- - Plan Trustee must be the Policy Owner and Beneficiary
- - We generally do not provide Plan administration; those must be obtained
from another party.
- - If each Plan participant directs investments under the Plan, individual
Policies must be issued for each participant. - Assignments and transfers
of the Policy to any individual are usually limited and would cause
adverse tax consequences to the Plan and/or participant.
- - The Enhanced Death Benefit could be characterized as an incidental benefit,
the amount of which is limited in any pension or profit-sharing plan.
o Individual Retirement Annuities
Code Section 408 permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity ("IRA").
Distributions from certain other types of qualified plans may be "rolled over"
on a tax-deferred basis to an IRA. The Taxpayer Relief Act of 1997 added several
features to the IRA permitting withdrawals prior to age 59 1/2 without federal
tax penalty for such uses as purchase of a first residence and education. This
Act also created a new kind of IRA, known as a "Roth IRA." Unlike the
traditional IRA, deposits in a Roth IRA are not deductible, but if certain
specified conditions are met, distributions from Roth IRA's can be tax free.
Assets in a Roth IRA accumulate on a tax-deferred, and potentially tax-free,
basis.
- - We will provide you with supplemental information required by the
Internal Revenue Service.
- - You may revoke your purchase within 7 days of the earlier of the date you
established your IRA/Roth IRA or the date you purchase the Policy.
- - An IRA or Roth IRA cannot be assigned.
o Tax Sheltered Annuities
Code Section 403(b) permits public school employees and employees of
certain types of religious, charitable, educational and scientific organizations
specified in Code Section 501(c)(3) to direct the purchase of annuity contracts
and, subject to certain limitations, exclude the amount of purchase payments
from gross income for income tax purposes. This Section 403(b) annuity contract
is commonly referred to as a "Tax Sheltered Annuity" or "TSA". - We only issue
the Policy as a TSA if each purchase payment is a direct transfer from another
Tax Sheltered Annuity Policy. We don't issue the Policy as a TSA to accept
direct purchase payments from an employer's payroll office.
- - The Policy as a TSA prohibits withdrawals or distributions except upon
the Annuitant's death, attainment of age 59 1/2, separation from
service or disability; and the Policy does not provide for hardship
withdrawals.
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- - A Tax Sheltered Annuity cannot be assigned.
- - The Policy Enhanced Death Benefit could be characterized as an
incidental benefit, the amount of which is limited in any Tax
Sheltered Annuity. Because the Enhanced Death Benefit may exceed this
limitation, employers using the Policy in connection with such plans
should consult their tax adviser.
- -----------------------------------------------------------
MISCELLANEOUS
o DISTRIBUTOR OF THE POLICIES
Mutual of Omaha Investor Services, Inc. ("MOIS"), Mutual of Omaha Plaza,
Omaha Nebraska 68175, is the principal underwriter of the Policies. Like us,
MOIS is an affiliate of Mutual of Omaha Insurance Company. MOIS enters into
contracts with various broker-dealers to distribute Policies. MOIS is registered
with the Securities and Exchange Commission as a broker-dealer and is a member
of the National Association of Securities Dealers, Inc. Commissions paid to a
broker-dealer are up to 7 1/2% of Purchase Payments.
o
VOTING RIGHTS
As required by law, we will vote Series Fund shares held by the Variable
Account at regular and special shareholder meetings of the Series Funds pursuant
to instructions received from persons having voting interests in the portfolios.
If, however, applicable law or regulation or interpretation of them is amended,
and as a result we may vote Series Fund shares in its own right, we may do so.
The Series Funds may not hold routine annual Shareholder meetings.
As a Policy Owner, you have a voting interest in the Portfolios you are
invested in. The number of votes that you may instruct for a particular
Subaccount is determined by dividing your Accumulation Value in the Subaccount
by the net asset value per share of the corresponding Series Fund Portfolio.
Fractional shares are counted. You will receive proxy material, reports, and
other materials relating to the appropriate Portfolio in which you have voting
interests.
o YEAR 2000 ISSUES
Like all financial services providers, we use systems affected by Year 2000
transition issues and rely upon service providers, including investment
managers, whose own systems may also be affected. We are implementing a Year
2000 transition plan, and are confirming that our service providers are also
doing so. The resources that are being devoted to this effort are substantial.
It is difficult to predict with precision whether the amount of resources
ultimately devoted, or the outcome of these efforts, will have any negative
impact on us. However, as of the date of this prospectus, we do not believe Year
2000 transition implementation will harm purchaser of Policies, or our Policy
administration efforts.
o LEGAL PROCEEDINGS
As of the date of this Prospectus, there are no legal proceedings affecting
the Variable Account, or that is material in relation to our total assets.
o DO YOU HAVE QUESTIONS?
If you have questions about your Policy or this prospectus, you may contact
your agent or broker who gave this prospectus to you, or you may contact us at:
United of Omaha, Variable Product Service, P.O. Box 8430, Omaha, Nebraska
68108-0430. Telephone 1-800-238-9354.
32
<PAGE>
o STATEMENT OF ADDITIONAL INFORMATION
You may obtain, at no cost, a Statement of Additional Information which
contains more details concerning the disclosures in this Prospectus by
contacting us. Here is the Statement's Table of Contents:
Contents Page(s)
---------------------------------------------- ----------
The Policy - general provisions 2-3
Owner and Joint Owner
Death of Annuitant
Entire Contract
Deferment of Payment and Transfers
Incontestability
Misstatement of Age or Sex
Nonparticipating
Assignment
Evidence of Age or Survival
---------------------------------------------- ----------
Federal Tax Matters 3-4
Tax Status of the Policy
Taxation of United of Omaha
---------------------------------------------- ----------
State Regulation of United of Omaha 4
---------------------------------------------- ----------
Administration 4-5
Records and Reports
Distribution of the Policies
Custody of Assets
---------------------------------------------- ----------
Historical Performance Data 5-14
Money Market Yields
Other Subaccount Yields
Total Returns
Other Performance Data
---------------------------------------------- ----------
Legal Matters 14
---------------------------------------------- ----------
Other Information 14
---------------------------------------------- ----------
Financial Statements 14
33
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
THE ULTRANNUITY SERIES V VARIABLE ANNUITY
Issued through: UNITED OF OMAHA SEPARATE ACCOUNT C
Offered by: UNITED OF OMAHA LIFE INSURANCE COMPANY ("We, us, our")
Mutual of Omaha Plaza
Omaha, Nebraska 68175
This Statement of Additional information expands upon subjects discussed in
the current Prospectus for the Ultrannuity Series V Variable Annuity Policy (the
"Policy"). You may obtain a copy of the Prospectus dated _____, 1999 by calling
1-800-238-9354 or by writing to us at: United of Omaha, Variable Product
Service, P.O. Box 8430, Omaha, Nebraska 68108-0430. Terms used in the current
Prospectus for the Policy have the same meaning in this Statement.
This Statement of Additional Information is not a
prospectus. You should read it only in conjunction with the prospectuses for
the Policy and the Series Funds.
Dated: ___________, 1999
TABLE OF CONTENTS
Page
The Policy-General Provisions ............................. 2
Owner and Joint Owner................................... 2
Death of Annuitant...................................... 2
Entire Contract ........................................... 2
Deferment of Payment and Transfers.................... 2
Incontestability ..................................... 2
Misstatement of Age or Sex............................ 2
Nonparticipating...................................... 3
Assignment............................................ 3
Evidence of Age or Survival........................... 3
Federal Tax Matters ....................................... 3
Tax Status of the Policy.............................. 3
Taxation of United of Omaha........................... 4
State Regulation of United of Omaha........................ 4
Administration ............................................ 4
Records and Reports........................................ 4
Distribution of the Policies .............................. 5
Custody of Assets.......................................... 5
Historical Performance Data ............................... 5
Money Market Yields................................... 5
Other Subaccount Yields............................... 6
Total Returns......................................... 6
Other Performance Data............................... 13
Legal Matters.............................................. 14
Other Information.......................................... 14
Financial Statements ...................................... 14
(Numbers in parentheses indicate corresponding sections of the Prospectus).
1
<PAGE>
The following provides additional information about us and the Policy which
may be of interest to you and is not addressed in the Prospectus.
THE POLICY - GENERAL PROVISIONS
Owner and Joint Owner
While you are alive, only you may exercise the rights under the Policy. You
may change the Owner of the Policy as described below under "Assignment." If
there are joint Owners, the signatures of both Owners are needed to exercise
rights under the Policy. If the Annuitant is other than the Owner, the Annuitant
has no rights under the Policy.
Entire Contract
The entire contract is the Policy, data page, any riders and the signed
application, a copy of which will be attached to the Policy. All statements made
in the application are deemed representations and not warranties. No statement,
unless it is in the application, will be used by us to contest the Policy or
deny a claim.
Any change of the Policy and any riders requires the consent of our
authorized officer. No agent or Registered Representative has authority to
change or waive any provision of the Policy.
We reserve the right to amend the Policy to meet the requirements of, or
take advantage of, the Internal Revenue Code, regulations or published rulings.
You can refuse such a change by giving Written Notice, but a refusal may result
in adverse tax consequences.
Deferment of Payment and Transfers
We will usually pay any amounts payable from the Variable Account as a
result of a partial withdrawal or cash surrender within seven days after
receiving Written Notice. We can postpone such payments or any transfers of
amounts between Subaccounts or into the Fixed Account if:
(a) the New York Stock Exchange is closed for other than customary weekend
and holiday closings;
(b) trading on the New York Stock Exchange is restricted;
(c) an emergency exists as determined by the Securities Exchange
Commission, as a result of which it is not reasonably practical to
dispose of securities, or not reasonably practical to determine the
value of the net assets of the Variable Account; or
(d) the Securities Exchange Commission permits delay for the protection of
security holders. The applicable rules of the Securities Exchange
Commission will govern as to whether the conditions in (c) or (d)
exist.
We may defer transfers, payment of partial withdrawals or a surrender
from the Fixed Account for up to six months from the date we receive Written
Notice.
Incontestability
We will not contest the validity of the Policy after its Date of Issue.
Misstatement of Age or Sex
We may require proof of the Annuitant's age before making any life
annuity payment. If the Annuitant's age or sex has been misstated, the Annuity
Starting Date and Annuity Payments will be determined using the correct age and
sex. If misstatement of age or sex results in Annuity Payments that are too
large, the overpayments will be deducted from future Annuity Payments. If We
have made payments that are too small, the underpayments will be added to the
next payment. Adjustments for overpayments or underpayments will include 6%
interest.
Nonparticipating
No dividends will be paid. Neither you nor the Beneficiary shares in our
surplus earnings or profits.
Assignment
You may change the Owner of the Policy or pledge it as collateral by
assigning it. No assignment is binding on us until we record and acknowledge it.
The rights of any Payee will be subject to a collateral assignment.
If the Beneficiary designation is irrevocable, the Owner may be changed
or the Policy assigned only upon Written Notice signed by both you and the
Beneficiary. On the Annuity Starting Date, you may select another Payee, but you
retain all rights of ownership unless you sign an absolute assignment of the
Policy.
Evidence of Age or Survival
We may require proof of the age or survival of any Owner, Annuitant or
Payee. No payment will be made until we receive such proof.
2
<PAGE>
Variable Annuity Units. All variable annuity payments other than the
first are determined by means of Variable Annuity Units credited to
the Policy with respect to the particular Payee. The number of
Variable Annuity Units for each subaccount is the amount of the first
annuity payment attributable to that subaccount divided by the Annuity
Unit Value for that subaccount as of the Annuity Starting Date. The
number of Variable Annuity Units of each particular subaccount
credited with respect to the Payee or Annuitant then remains fixed
unless a transfer of Variable Annuity Units is made as described
below. The number of Variable Annuity Units will not change as a
result of investment experience. For any Valuation Period, the value
of a Variable Annuity Unit of a particular subaccount is the Variable
Annuity Unit value during the last Valuation Period for that
particular Subaccount, multiplied by the Net Investment Factor for
that subaccount for the current Valuation Period. The value of a
subaccount may increase or decrease from one Valuation Period to the
next. The Net Investment Factor for any subaccount for any Valuation
Period is determined by dividing (a) by (b) and then subtracting (c)
from the result where:
(a) is the net result of:
(1) the net asset value of a Portfolio share held in the subaccount
determined as of the end of the current Valuation Period, plus
(2) the per share amount of any declared and unpaid dividends or
capital gains accruing to that Portfolio, plus or minus
(3) a per share credit or charge with respect to any taxes paid or
reserved for by United of Omaha during the Valuation Period which
is determined by United of Omaha to be attributable to the
operations of the subaccount;
(b)is the net asset value per share of the Fund held in the subaccount
determined as of the end of the preceding Valuation Period plus or
minus the per share credit or charge with respect to any taxes paid or
reserved for the preceding Valuation Period; and
(c) is the asset charge factor determined by us for the Valuation Period
to reflect the Mortality and Expense Risk Charge and the
Administrative Expense Charge deducted from the Variable Account.
This factor is equal, on an annual basis, to 1.20% of the net asset
value of the Variable Account, or 1.55% of the net asset value of
the Variable Account if the Enhanced Death Benefit is chosen.
The result is then multiplied by a factor that offsets the Assumed Investment
Rate used to establish the Annuity Payment Rates found in the applicable
Contract, which allows the actual investment rate to be credited. For a one day
Valuation Period the factor is 0.99989255 using an Assumed Investment Rate of 4%
per year.
FEDERAL TAX MATTERS
Tax Status of the Policy
Diversification Requirements. Section 817(h) of the Internal Revenue
Code provides that in order for a variable contract based on a segregated asset
account to qualify as an annuity contract under the Code, the investments made
by such account must be "adequately diversified." The Treasury regulations
issued under Section 817(h) (Treas. Reg. ss. 1.817-5) apply a diversification
requirement to each of the Subaccounts of the Variable Account. The Variable
Account, through the Series Funds and their Portfolios, intends to comply with
those diversification requirements. We and the Series Funds have entered into
agreements regarding participation in the Series Funds that requires the Series
Funds and their Portfolios to comply with the Treasury regulations.
Owner Control. In certain circumstances, owners of variable annuity
contracts may be considered the owners, for federal income tax purposes, of the
assets of the separate account used to support their contracts. In those
circumstances, income and gains from the separate account assets would be
includible in the variable contract owner's gross income. The IRS has stated in
published rulings that a variable contract owner will be considered the owner of
separate account assets if the contract owner possesses incidents of ownership
in those assets, such as the ability to exercise investment control over the
assets. The Treasury Department also announced, in connection with the issuance
of regulations concerning diversification, that those regulations "do not
provide guidance concerning the circumstances in which investor control of the
investments of a segregated asset account may cause the investor (i.e., the
Owner), rather than the insurance company, to be treated as the owner of the
assets in the account." This announcement also stated that guidance would be
issued by way of regulations or rulings on the "extent to which policyholders
may direct their investments to particular subaccounts without being treated as
owners of the underlying assets." As of the date of this prospectus, no such
guidance has been issued.
The ownership rights under the Policy are similar to, but different in
certain respects from, those described by the IRS in rulings in which it was
determined that policy owners were not owners of separate account assets. For
example, you have additional flexibility in allocating premium payments and
policy values. These differences could result in you being treated as the owner
of a pro-rata portion of the assets of the Separate Account. In addition, we do
not know what standards will be set forth, if any, in future regulations or
rulings issued by the Treasury Department. We therefore reserve the right to
modify the Policy as necessary to attempt to prevent you from being considered
the owner of a pro-rata share of the assets of the Variable Account or to
otherwise qualify the Policy for favorable tax treatment.
3
<PAGE>
Distribution Requirements. The Code also requires that Nonqualified
Policies contain specific provisions for distribution of Policy Proceeds upon
your death. In order to be treated as an annuity contract for federal income tax
purposes, the Code requires that such Policies provide that if you die on or
after the Annuity Starting Date and before the entire interest in the Policy has
been distributed, the remaining portion must be distributed at least as rapidly
as under the method in effect on your death. If you die before the Annuity
Starting Date, the entire interest in your Policy must generally be distributed
within five years after your death. This requirement can be satisfied if the
entire interest in your Policy is used to purchase an immediate annuity under
which payments will begin within one year of your death and will be made for the
life of the Beneficiary or for a period not extending beyond the life expectancy
of the Beneficiary. If the Beneficiary is your surviving spouse, the Policy may
be continued with your surviving spouse as the new Owner. The Policy contains
provisions intended to comply with these requirements of the Code. No
regulations interpreting these requirements of the Code have yet been issued and
thus no assurance can be given that the provisions contained in the Policy
satisfies all such Code requirements. The provisions contained in the Policy
will be reviewed and modified if necessary to assure that they comply with the
Code requirements when clarified by regulation or otherwise.
Taxation of United of Omaha
We at present are taxed as a life insurance company under part I of
Subchapter L of the Code. The Variable Account is treated as part of us and,
accordingly, is not taxed separately as a "regulated investment company" under
Subchapter M of the Code. We do not expect to incur any federal income tax
liability with respect to investment income and net capital gains arising from
the activities of the Variable Account retained as part of the reserves under
the Policy. Based on this expectation, it is anticipated that no charges will be
made against the Variable Account for federal income taxes. If, in future years,
any federal income taxes or related economic burdens are incurred by us with
respect to the Variable Account, we may make a charge to the Variable Account.
STATE REGULATION OF UNITED OF OMAHA
We are subject to Nebraska law and to regulation by the Nebraska
Division of Insurance. We file an annual statement with the Nebraska Department
of Insurance covering our operation for the preceding year and our financial
condition as of the end of such year. Regulation by the Department of Insurance
includes periodic examination to determine our contract liabilities and reserves
so that the Department may certify the items are correct. Our books and accounts
are subject to review by the Department of Insurance at all times and a full
examination of our operations is conducted periodically by the National
Association of Insurance Commissioners. In addition, we are subject to
regulation under the insurance laws of other jurisdictions in which we operate.
ADMINISTRATION
Effective on or about March 3, 1997, we perform all administration for
your Policy. Before then, we had an administrative services agreement with The
Continuum Company, Inc. (a/k/a Vantage Computer Systems), ("Vantage"), P.O. Box
419472, Kansas City, Missouri 64141-6472. The services provided by Vantage under
the agreement included issuance and redemption of the Policies, maintenance of
records concerning the Policies, and certain valuation services. We have not
paid any fees to Vantage in 1998. For the fiscal year ended December 31, 1997,
United of Omaha paid $ 200,000 total compensation to Vantage, and in fiscal year
ended December 31, 1996 the amount was $ 650,000.
RECORDS AND REPORTS
All our records and accounts relating to the Variable Account are
maintained by us. As presently required by the Investment Company Act of 1940
and regulations promulgated thereunder, we will mail to all Policy Owners at
their last known address of record, at least annually, financial statements of
the Variable Account and such other information as may be required under that
Act or by any other applicable law or regulation. Policy Owners will also
receive confirmation of each financial transaction and any other reports
required by applicable state and federal laws, rules, and regulations.
4
<PAGE>
DISTRIBUTION OF THE POLICIES
The Policies are offered to the public through brokers licensed under
the federal securities laws and state insurance laws. The offering of the
Policies is continuous and we do not anticipate discontinuing the offering of
the Policies. However, we reserve the right to discontinue the offering of the
Policies.
Mutual of Omaha Investor Services, Inc. ("MOIS") will be the principal
underwriter of the Policies. The Policies will be distributed by MOIS through
retail broker-dealers. Commissions payable to a broker-dealer will be up to 7.5%
of Purchase Payments. For the fiscal year ended December 31, 1997, we paid
$17,318,698 in total compensation to MOIS; of this amount MOIS retained $
3,235,557 as concessions for its services as Principal Underwriter and for
distribution concessions, with the remaining amount paid to other
broker-dealers. In 1996, these amounts were $ 18,853,282 and $ 1,626,399
respectively. In 1995, these amounts were $ 2,096,354 and $ 137,803
respectively.
CUSTODY OF ASSETS
We hold the assets of each of the Subaccounts of the Variable Account.
The assets of the Variable Account are segregated and held separate and apart
from our general account assets. We maintain records of all purchases and
redemptions of shares of the Series Funds held by each of the Subaccounts.
Additional protection for the assets of the Variable Account is afforded by our
fidelity bond, presently in the amount of $10 million, covering the acts of our
officers and employees.
HISTORICAL PERFORMANCE DATA
From time to time, we may disclose yields, total returns, and other
performance data pertaining to the Policies for a Subaccount. Such performance
data will be computed, or accompanied by performance data computed, in
accordance with the standards defined by the Securities and Exchange Commission.
The yields and total returns of the Subaccounts of the Variable Account
normally will fluctuate over time. Therefore, the disclosed yields and total
returns for any given past period are not an indication or representation of
future yields or rates of return. A Subaccount's actual yield and total return
is affected by the types and quality of portfolio securities held by the
Portfolio and its operating expenses.
Because of the charges and deductions imposed under a Policy, the yields
and total returns for the Subaccounts will be lower than the yields and total
returns for their respective Portfolios. The yield figures will not reflect the
Withdrawal Charge. The calculations of yields, total returns, and other
performance data do not reflect the effect of any premium tax charge that may be
applicable to a particular Policy. Premium taxes currently range for 0% to 3.5%
of Purchase Payments based on the state in which the Policy is sold. For the
class of Policies issued with the Elective Death Benefit Amendment, the Death
Benefit Charge is reflected.
Money Market Yields
From time to time, advertisements and sales literature may quote the
current annualized yield of the Money Market Subaccount for a seven-day period
in a manner which does not take into consideration any realized or unrealized
gains or losses on shares of the Money Market Portfolio or on its portfolio
securities. As of 12/31/98, this current annualized yield is _____%.
This current annualized yield is computed by determining the net change
(exclusive of realized gains and losses on the sale of securities, unrealized
appreciation and depreciation, and excluding income other than investment
income) at the end of the seven-day period in the value of a hypothetical
account under a Policy having a balance of one Accumulation Unit of the Money
Market Subaccount at the beginning of the period to determine the base period
return, and annualizing this quotient on a 365-day basis. The net change in
account value reflects: (1) net income from the Portfolio attributable to the
hypothetical account; and (2) charges and deductions imposed under the Policy
which are attributable to the hypothetical account. The charges and deductions
include the per Unit charges for the hypothetical account for: (1) the annual
Policy Fee; (2) the Administrative Expense Charge; and (3) the Mortality and
Expense Risk Charge. The $30 annual Policy Fee is reflected as an annual 0.10%
charged daily, based on an average Accumulation Value of $30,000.
Yield figures will not reflect the Withdrawal Charge.
Because of the charges and deductions imposed under the Policy, the
yield for the Money Market Subaccount will be lower than the yield for the Money
Market Portfolio.
The Securities and Exchange Commission also permits United of Omaha to
disclose the effective yield of the Money Market Subaccount for the same
seven-day period, determined on a compounded basis. The effective yield is
calculated by compounding the unannualized base period return by adding one to
the base period return, raising the sum to a power equal to 365 divided by 7,
and subtracting one from the result.
The current and effective yields on amounts held in the Money Market
Subaccount normally will fluctuate on a daily basis. THEREFORE, THE DISCLOSED
YIELD FOR ANY GIVEN PAST PERIOD IS NOT AN INDICATION OR REPRESENTATION OF FUTURE
YIELDS OR RATES OF RETURN. The Money Market Subaccount's actual yield is
affected by changes in interest rates on money market securities, average
portfolio maturity of the Money Market Portfolio, the types of quality of
portfolio securities held by the Money Market Portfolio and the Money Market
Portfolio's operating expenses. Yields figures do not reflect the effect of any
Withdrawal Charge that may be applicable to a Policy. For the class of Policies
issued with the Elective Death Benefit Amendment, the Death Benefit Charge is
included.
5
<PAGE>
Other Subaccount Yields
From time to time, sales literature or advertisements may quote the
current annualized yield of one or more of the Subaccounts (except the Money
Market Subaccount) for a Policy for 30-day or one-month periods. The annualized
yield of a Subaccount refers to income generated by the Subaccount over a
specific 30-day or one-month period. Because the yield is annualized, the yield
generated by a Subaccount during a 30-day or one-month period is assumed to be
generated each period over a 12-month period.
The yield is computed by: (a) dividing the net investment income of the
Portfolio attributable to the Subaccount Accumulation Units less Subaccount
expenses for the period by the maximum offering price per Accumulation Unit on
the last day of the period times the daily average number of units outstanding
for the period; (b) compounding that yield for a six-month period; and (c)
multiplying that result by 2. Expenses attributable to the Subaccount include:
(a) the annual Policy Fee; (b) the Administrative Expense Charge; and (c) the
Mortality and Expense Risk Charge. The $30 annual Policy Fee is reflected as an
annual 0.10% charged daily in the yield calculation, based on an average
Accumulation Value of $30,000. For the class of Policies issued with the
Elective Death Benefit Amendment, the Death Benefit Charge is included. The
30-day or one-month yield is calculated according to the following formula:
Yield = [2 {a-b + 1} 6 - 1]
[ cd ]
Where:
a =-- net income of the Portfolio for the 30-day or one-month period
attributable to the Subaccount's Accumulation Units.
b =-- expenses of the Subaccount for the 30-day or one-month period.
c =-- the average number of Accumulation Units outstanding.
d =-- the Accumulation Unit value at the close of the last day in
the 30-day or one-month period.
Because of the charges and deductions imposed under the Policies, the
yield for a Subaccount will be lower than the yield for the corresponding Series
Fund Portfolio.
Yield calculations do not take into account the Withdrawal Charge under
the Policy (a maximum of 7% of the Purchase Payments surrendered or withdrawn).
Average Annual Total Returns
From time to time, sales literature or advertisements may also quote
average annual total returns for one or more of the Subaccounts for various
periods of time.
When a Subaccount has been in operation for 1, 5, and 10 years,
respectively, the average annual total return for these periods will be
provided. Until a Subaccount has been in operation for 10 years, we will always
include quotes of average annual total return for the period measured from the
date the Policies were first offered for sale. Average annual total returns for
other periods of time may, from time to time, also be disclosed.
Average annual total returns represent the average annual compounded
rates of return that would equate an initial investment of $1,000 under a Policy
to the redemption value of that investment as of the last day of each of the
periods. Average annual total returns will be calculated using Subaccount
Accumulation Unit values which we calculate at the end of each Valuation Period
based on the performance of the Subaccount's underlying Portfolio, the
deductions for (a) the annual Policy Fee; (b) the Administrative Expense Charge;
and (c) the Mortality and Expense Risk Charge. The $30 annual Policy Fee is
reflected as an annual 0.10% charged daily in the calculation of average annual
total returns, based on an anticipated average Accumulation Value of $30,000.
The calculation also assumes surrender of the Policy at the end of the period
for the return quotation. Standard total returns will therefore reflect a
deduction of any applicable Withdrawal Charge. For the class of Policies issued
with the Elective Death Benefit Amendment, the deduction for the Death Benefit
Charge is also reflected. The total return will then be calculated according to
the following formula:
P(1+TR) n = ERV
Where:
P =-- a hypothetical initial Purchase Payment of $1,000.
TR = -- the average annual total return.
ERV = -- the ending redeemable value (net of any applicable
Withdrawal Charge) of the hypothetical account at the end
of the period.
n =-- the number of years in the period.
6
<PAGE>
Performance Data. Effective yields and total returns for the Subaccounts are
based on the investment performance of the corresponding Portfolios of the
Series Funds. The Series Funds' performance in part reflects the Series Funds'
expenses. See the Prospectuses for the Series Funds.
The yield of a Subaccount (except the Money Market Subaccount) refers to
the annualized income generated by an investment in the Subaccount over a
specified 30-day or one-month period. The yield is calculated by assuming that
the income generated by the investment during that 30-day or one-month period is
generated each period over a 12-month period and is shown as a percentage of the
investment.
Such average annual total return information for the Subaccounts of
Policies is as follows:
7
<PAGE>
- ---------------------------------------------- ------------ ---------
SUBACCOUNT 1 Year From
AVERAGE ANNUAL TOTAL RETURN (reflects Ended Inception
Withdrawal Charges) 12/31/98 to
Subaccount (date of inception) % 12/31/98
(Policy issued without Enhanced Death %
Benefit)
- ---------------------------------------------- ------------ ----------
Alger American Growth (6/5/95)
Alger American Small Capitalization (6/5/95)
Federated Prime Money Fund II (6/5/95)
Federated Fund for U.S. Government Securities (6/5/95)
Fidelity VIP II Asset Manager: Growth (6/5/95)
Fidelity VIP II Contrafund (6/5/95)
Fidelity VIP Equity Income (6/5/95)
Fidelity VIP II Index 500 (5/1/97)
MFS Emerging Growth (6/5/95)
MFS High Income (6/5/95)
MFS Research (6/5/95)
MFS Value Series (5/1/97)
MFS World Government (6/5/95)
Morgan Stanley Emerging Markets Equity (5/1/98)
Morgan Stanley Fixed Income (5/1/98)
Pioneer Capital Growth (5/1/97)
Pioneer Real Estate (5/1/97)
Scudder Global Discovery (5/1/97)
Scudder Growth & Income (5/1/97)
Scudder International (6/5/95)
T. Rowe Price International (6/5/95)
T. Rowe Price New America Growth (6/5/95)
T. Rowe Price Equity Income (6/5/95)
T. Rowe Price Limited-Term Bond (6/5/95)
T. Rowe Price Personal Strategy Balanced (6/5/95)
============================================== ============ ===========
1 Year From
Subaccount (date of inception ) Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/98 to
12/31/98
============================================== ============ ===========
Alger American Growth (6/5/95)
Alger American Small Capitalization (6/5/95)
Federated Prime Money Fund II (6/5/95)
Federated Fund for U.S. Government Securities (6/5/95)
Fidelity VIP II Asset Manager: Growth (6/5/95)
Fidelity VIP II Contrafund (6/5/95)
Fidelity VIP Equity Income (6/5/95)
Fidelity VIP II Index 500 (5/1/97)
MFS Emerging Growth (6/5/95)
MFS High Income (6/5/95)
MFS Research (6/5/95)
MFS Value Series (5/1/97)
MFS World Government (6/5/95)
Morgan Stanley Emerging Markets Equity (5/2/98)
Morgan Stanley Fixed Income (5/1/98)
Pioneer Capital Growth (5/1/97)
Pioneer Real Estate (5/1/97)
Scudder Global Discovery (5/1/97)
Scudder Growth & Income (5/1/97)
Scudder International (6/5/95)
T. Rowe Price International (6/5/95)
T. Rowe Price New America Growth (6/5/95)
T. Rowe Price Equity Income (6/5/95)
T. Rowe Price Limited-Term Bond (6/5/95)
T. Rowe Price Personal Strategy Balanced (6/5/95)
============================================== ============ ===========
8
<PAGE>
Non-Standardized Performance Data. In addition to the version described above,
total return performance information computed on different non-standard bases
may be used in advertisements. Average annual total return information may be
presented, computed on the same basis as described above, except deductions will
not include the Withdrawal Charge. Such non-standardized average annual total
return information for the Subaccounts of Policies is as follows:
- ---------------------------------------------- ------------ ===========
SUBACCOUNT NON-STANDARDIZED 1 Year From
AVERAGE ANNUAL TOTAL RETURN Ended Inception
(does not reflect Withdrawal Charges) 12/31/98 to
Subaccount (date of inception) % 12/31/98
(Policy issued without Enhanced Death %
Benefit)
- ---------------------------------------------- ------------ ===========
Alger American Growth (6/5/95)
Alger American Small Capitalization (6/5/95)
Federated Prime Money Fund II (6/5/95)
Federated Fund for U.S. Government Securities (6/5/95)
Fidelity VIP II Asset Manager: Growth (6/5/95)
Fidelity VIP II Contrafund (6/5/95)
Fidelity VIP Equity Income (6/5/95)
Fidelity VIP II Index 500 (5/1/97)
MFS Emerging Growth (6/5/95)
MFS High Income (6/5/95)
MFS Research (6/5/95)
MFSValue Series (5/1/97)
MFS World Government (6/5/95)
Morgan Stanley Emerging Markets Equity (5/1/98)
Morgan Stanley Fixed Income (5/1/98)
Pioneer Capital Growth (5/1/97)
Pioneer Real Estate (5/1/97)
Scudder Global Discovery (5/1/97)
Scudder Growth & Income (5/1/97)
Scudder International (6/5/95)
T. Rowe Price International (6/5/95)
T. Rowe Price New America Growth (6/5/95)
T. Rowe Price Equity Income (6/5/95)
T. Rowe Price Limited-Term Bond (6/5/95)
T. Rowe Price Personal Strategy Balanced (6/5/95)
============================================== ============ ===========
9
<PAGE>
Subaccount (date of inception) 1 Year From
(Policy issued with Enhanced Death Benefit) Ended Inception
12/31/98 to
12/31/98
============================================== ============ ===========
Alger American Growth (6/5/95)
Alger American Small Capitalization (6/5/95)
Federated Prime Money Fund II (6/5/95)
Federated Fund for U.S. Government Securities (6/5/95)
Fidelity VIP II Asset Manager: Growth (6/5/95)
Fidelity VIP II Contrafund (6/5/95)
Fidelity VIP Equity Income (6/5/95)
Fidelity VIP II Index 500 (5/1/97)
MFS Emerging Growth (6/5/95)
MFS High Income (6/5/95)
MFS Research (6/5/95)
MFS Value Series (5/1/97)
MFS World Government (6/5/95)
Morgan Stanley Emerging Markets Equity (5/1/98)
Morgan Stanley Fixed Income (5/1/98)
Pioneer Capital Growth (5/1/97)
Pioneer Real Estate (5/1/97)
Scudder Global Discovery (5/1/97)
Scudder Growth & Income (5/1/97)
Scudder International (6/5/95)
T. Rowe Price International (6/5/95)
T. Rowe Price New America Growth (6/5/95)
T. Rowe Price Equity Income (6/5/95)
T. Rowe Price Limited-Term Bond (6/5/95)
T. Rowe Price Personal Strategy Balanced (6/5/95)
- ---------------------------------------------- ------------ ===========
In addition, we may from time to time disclose average annual total return in
non-standard formats and cumulative total return for Policies funded by the
Subaccounts.
THE FIGURES ABOVE ARE AN INDICATION OF PAST, BUT NOT FUTURE, PERFORMANCE OF THE
APPLICABLE SUBACCOUNTS AVAILABLE UNDER THE POLICY.
Adjusted Historical Performance Data. We may, from time to time, also
disclose yield, standard total returns, and non-standard total returns for the
Portfolios of the Series Funds, including such disclosure for periods prior to
the dates the Subaccounts commenced operations. For periods prior to the date
the Subaccount commenced operations, performance information for Policies will
be calculated based on the performance of the Series Fund Portfolios and the
assumption that the Subaccounts were in existence for the same periods as those
indicated for the Series Fund Portfolios, with the level of Policy charges that
were in effect at the inception of the Subaccounts (this is referred to as
"adjusted historical" performance data). Such standardized but "adjusted
historical" average annual total return information for the Subaccounts of
Policies is as follows:
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------- --------- --------- ------------ ============
SUBACCOUNT 1 Year 5 Years 10 Years Since
"ADJUSTED HISTORICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/98 12/31/98 12/31/98 to 12/31/98
(Reflects Withdrawal Charges) % % % %
Subaccount (date of inception of corresponding
Portfolio)
(Policy issued without Enhanced Death Benefit)
- ------------------------------------------------- --------- --------- ---------
<S> <C> <C> <C>
Alger American Growth (1/9/89) N/A
Alger American Small Capitalization (9/21/88)
Federated Prime Money Fund II (11/21/94) N/A N/A
Federated Fund for U.S. Government Securities (3/28/94) N/A N/A
Fidelity VIP II Asset Manager: Growth (1/3/95) N/A N/A
Fidelity VIP II Contrafund (1/3/95) N/A N/A
Fidelity VIP Equity Income (10/9/86)
Fidelity VIP II Index 500 (8/27/92) N/A
MFS Emerging Growth (7/24/95) N/A N/A
MFS High Income (7/26/95) N/A N/A
MFS Research (7/26/95) N/A N/A
MFS Value Series (8/14/96) N/A N/A
MFS World Government (6/14/94) N/A N/A
Morgan Stanley Emerging Markets Equity (10/1/96) N/A N/A
Morgan Stanley Fixed Income (1/2/97) N/A N/A
Pioneer Capital Growth (3/1/95) N/A N/A
Pioneer Real Estate (3/1/95) N/A N/A
Scudder Global Discovery (5/2/97) N/A N/A
Scudder Growth & Income (5/1/97) N/A N/A
Scudder International (5/1/87)
T. Rowe Price International (3/31/94) N/A N/A
T. Rowe Price New America Growth (3/31/94) N/A N/A
T. Rowe Price Equity Income (3/31/94) N/A N/A
T. Rowe Price Limited-Term Bond (5/13/94) N/A N/A
T. Rowe Price Personal Strategy Balanced(12/31/94) N/A N/A
================================================= ========= ========= ============ ============
Subaccount (date of inception of corresponding 1 Year 5 Years 10 Years Since
Portfolio) Ended Ended Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/98 12/31/98 12/31/98 to 12/31/98
================================================= ========= ========= ============ ============
================================================= ========= ========= ============ ============
Alger American Growth (1/9/89) N/A
Alger American Small Capitalization (9/21/88)
Federated Prime Money Fund II (11/21/94) N/A N/A
Federated Fund for U.S. Government Securities (3/28/94) N/A N/A
Fidelity VIP II Asset Manager: Growth (1/3/95) N/A N/A
Fidelity VIP II Contrafund (1/3/95) N/A N/A
Fidelity VIP Equity Income (10/9/86)
Fidelity VIP II Index 500 (8/27/92) N/A
MFS Emerging Growth (7/24/95) N/A N/A
MFS High Income (7/26/95) N/A N/A
MFS Research (7/26/95) N/A N/A
MFS Value Series (8/14/96) N/A N/A
MFS World Government (6/14/94) N/A N/A
Morgan Stanley Emerging Markets Equity (10/1/96) N/A N/A
Morgan Stanley Fixed Income (1/2/97) N/A N/A
Pioneer Capital Growth (3/1/95) N/A N/A
Pioneer Real Estate (3/1/95) N/A N/A
Scudder Global Discovery (5/2/97) N/A N/A
Scudder Growth & Income (5/1/97) N/A N/A
Scudder International (5/1/87)
T. Rowe Price International (3/31/94) N/A N/A
T. Rowe Price New America Growth (3/31/94) N/A N/A
T. Rowe Price Equity Income (3/31/94) N/A N/A
T. Rowe Price Limited-Term Bond (5/13/94) N/A N/A
T. Rowe Price Personal Strategy Balanced (12/31/94) N/A N/A
11
<PAGE>
</TABLE>
================================================= ========= ========= ==========
Such non-standardized (i.e., assuming no Withdrawal Charge) but adjusted
historical average annual total return information for the Subaccounts is as
follows:
<TABLE>
<CAPTION>
- ------------------------------------------------- --------- --------- ------------ ============
SUBACCOUNT NON-STANDARDIZED 1 Year 5 Years 10 Years Since
"ADJUSTED HISTORICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/98 12/31/98 12/31/98 to 12/31/98
(Does not reflect Surrender Charges) % % % %
Subaccount (date of inception of corresponding
Portfolio)
(Policy issued without Enhanced Death Benefit)
- ------------------------------------------------- --------- --------- ------------ ============
<S> <C> <C> <C> <C>
Alger American Growth (1/9/89) N/A
Alger American Small Capitalization (9/21/88)
Federated Prime Money Fund II (11/21/94) N/A N/A
Federated Fund for U.S. Government Securities (3/28/94) N/A N/A
Fidelity VIP II Asset Manager: Growth (1/3/95) N/A N/A
Fidelity VIP II Contrafund (1/3/95) N/A N/A
Fidelity VIP Equity Income (10/9/86)
Fidelity VIP II Index 500 (8/27/92) N/A
MFS Emerging Growth (7/24/95) N/A N/A
MFS High Income (7/26/95) N/A N/A
MFS Research (7/26/95) N/A N/A
MFS Value Series (8/14/96) N/A N/A
MFS World Government (6/14/94) N/A N/A
Morgan Stanley Emerging Markets Equity (10/1/96) N/A N/A
Morgan Stanley Fixed Income (1/2/97) N/A N/A
Pioneer Capital Growth (3/1/95) N/A N/A
Pioneer Real Estate (3/1/95) N/A N/A
Scudder Global Discovery (5/2/97) N/A N/A
Scudder Growth & Income (5/1/97) N/A N/A
Scudder International (5/1/87)
T. Rowe Price International (3/31/94) N/A N/A
T. Rowe Price New America Growth (3/31/94) N/A N/A
T. Rowe Price Equity Income (3/31/94) N/A N/A
T. Rowe Price Limited-Term Bond (5/13/94) N/A N/A
T. Rowe Price Personal Strategy Balanced (12/31/94) N/A N/A
12
<PAGE>
================================================= ========= ========= ============ ============
Subaccount (date of inception of corresponding 1 Year 5 Years 10 Years Since
Portfolio) Ended Ended Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/98 12/31/98 12/31/98 to 12/31/98
================================================= ========= ========= ============ ============
================================================= ========= ========= ============ ============
Alger American Growth (1/9/89) N/A
Alger American Small Capitalization (9/21/88)
Federated Prime Money Fund II (11/21/94) N/A N/A
Federated Fund for U.S. Government Securities (3/28/94) N/A N/A
Fidelity VIP II Asset Manager: Growth (1/3/95) N/A N/A
Fidelity VIP II Contrafund (1/3/95) N/A N/A
Fidelity VIP Equity Income (10/9/86)
Fidelity VIP II Index 500 (8/27/92) N/A
MFS Emerging Growth (7/24/95) N/A N/A
MFS High Income (7/26/95) N/A N/A
MFS Research (7/26/95) N/A N/A
MFS Value Series (8/14/96) N/A N/A
MFS World Government (6/14/94) N/A N/A
Morgan Stanley Emerging Markets Equity (10/1/96) N/A N/A
Morgan Stanley Fixed Income (1/2/97) N/A N/A
Pioneer Capital Growth (3/1/95) N/A N/A
Pioneer Real Estate (3/1/95) N/A N/A
Scudder Global Discovery (5/2/97) N/A N/A
Scudder Growth & Income (5/1/97) N/A N/A
Scudder International (5/1/87)
T. Rowe Price International (3/31/94) N/A N/A
T. Rowe Price New America Growth (3/31/94) N/A N/A
T. Rowe Price Equity Income (3/31/94) N/A N/A
T. Rowe Price Limited-Term Bond (5/13/94) N/A N/A
T. Rowe Price Personal Strategy Balanced (12/31/94) N/A N/A
================================================= ========= ========= ============ ============
</TABLE>
THE FIGURES ABOVE ARE NOT AN INDICATION OF PRESENT, PAST, OR FUTURE PERFORMANCE
OF THE APPLICABLE SUBACCOUNTS OR OF THE ACTUAL PORTFOLIOS AVAILABLE UNDER THE
POLICY.
We may disclose Cumulative Total Returns in conjunction with the
standard formats described above. The Cumulative Total Returns will be
calculated using the following formula:
CTR = (ERV/P) - 1
Where:
CTR = -- The Cumulative Total Return net of Subaccount recurring
charges for the period.
ERV = -- The ending redeemable value of the hypothetical investment
at the end of the period.
P = -- A hypothetical initial Purchase Payment of $1,000.
Other Information
The following is a partial list of those publications which may be cited
in the Series Funds' advertising shareholder materials which contain articles
describing investment results or other data relative to one or more of the
Subaccounts. Other publications may also be cited.
Across the Board
Advertising Age
American Banker
Barron's
Best's Review
Broker World
Business Insurance
Business Month
Business Week
Changing Times
Consumer Reports
Economist
Financial Planning
Financial World
Forbes
Fortune
Inc.
Institutional Investor
Insurance Forum
Insurance Sales
Insurance Week
Journal of Accountancy
Journal of the American Society of CLU & ChFC
Journal of Commerce
Life Association News
Life Insurance Selling
Manager's Magazine
Market Facts
Money
13
<PAGE>
LEGAL MATTERS
We know of no material legal proceedings pending to which the Variable
Account is a party or which would materially affect the Variable Account. We are
not involved in any litigation of material importance to our total assets or to
the Variable Account. Legal matters in connection with the Policy have been
passed upon by our Law Staff.
OTHER INFORMATION
A Registration Statement has been filed with the Securities and Exchange
Commission ("SEC"), under the Securities Act of 1933 as amended, with respect to
the Policies discussed in this Statement of Additional Information. Not all of
the information set forth in the Registration Statement, amendments and exhibits
thereto has been included in the Prospectus or this Statement of Additional
Information. Statements contained in the Prospectus and this Statement of
Additional Information concerning the content of the Policies and other legal
instruments are intended to be summaries. For a complete statement of the terms
of these documents, refer to the instruments filed with the SEC. They may be
accessed on the SEC's Web site:
http://www.sec.gov.
FINANCIAL STATEMENTS
This Statement of Additional Information contains financial statements
for the Variable Account as of December 31, 1998 and for the years ended
December 31, 1997 and 1996 which have been audited by Deloitte & Touche, LLP,
independent auditors, Omaha, Nebraska, as stated in their report appearing
herein.
The Financial Statements of United of Omaha Life Insurance Company as of
and for the years ended December 31, 1998, 1997 and 1996 included in this
Statement of Additional Information have been audited by Deloitte & Touche LLP,
independent auditors, Omaha, Nebraska, as stated in their report appearing
herein. The financial statements of United of Omaha Life Insurance Company
should be considered only as bearing on our ability to meet its obligations
under the Policies. They should not be considered as bearing on the investment
performance of the assets held in the Variable Account.
14
<PAGE>
(AUDITED FINANCIAL STATEMENTS OF UNITED OF OMAHA and THE UNITED SEPARATE ACCOUNT
C WILL BE INSERTED HERE BY SUBSEQUENT POST-EFFECTIVE AMENDMENT BEFORE THIS
AMENDED REGISTRATION BECOMES EFFECTIVE.)
<PAGE>
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
All required financial statements are included in Part B of this
Registration Statement.
(b) Exhibits: The following exhibits are filed herewith:
Exhibit No. Description of Exhibit
- ------------ -----------------------
(1) (a) Resolution of the Board of Directors establishing the Variable
Account. *
(2)
Not applicable.
(3) (a) Principal Underwriter Agreement by and between United, on
its own behalf and on behalf of the Variable Account, and
Mutual of Omaha Investor Services. *
(b) Form of Broker/Dealer Supervision and Sales Agreement by and
between Mutual of Omaha Investor Services, Inc. and the Broker/
Dealer.*
(4) (a) Form of Policy for the SERIES V variable annuity Policy.*
(b) Form of Riders to the Policy.*
(c) Systematic Transfer Enrollment Program Endorsement to the
Policy. ***
(5) Form of Application to the Policy. ****
(6) (a) Articles of Incorporation of United of Omaha Life Insurance
Company.*
(b) Bylaws of United of Omaha Life Insurance Company.*
(7) Not applicable.
(8) (a) Participation Agreement with the Alger American Fund*
(b) Participation Agreement with the Insurance Management Series*
(c) Participation Agreement with the Fidelity VIP Fund and Fidelity
VIP Fund II.*
(d) Participation Agreement with the MFS Variable Insurance Trust.*
(e) Participation Agreement with the Pioneer Variable Contracts
Trust.*
(f) Participation Agreement with the Scudder Variable Life
Investment Fund.*
(g) Participation Agreement with T. Rowe Price International
Series, T. Rowe Price Fixed Income Series, and T. Rowe Price
Equity Series.*
(h) Administrative Services Agreement with Vantage Computer
Systems.*
(i) Participation Agreement with Morgan Stanley Universal Funds,
et. al. ***
(9) Opinion and Consent of Counsel. #####
(10) Consents of Independent Auditors #####
(11) Not applicable.
(12) Not applicable.
(13) Schedules of Computation of Performance Data. #####
(14) Powers of Attorney.**
C-1
<PAGE>
* Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account C filed on April 24, 1997 (File No. 33-89848).
** Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account B filed on June 20, 1997 (File No. 333-18881).
*** Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account B filed on April 7, 1998 (File No. 333-18881).
**** Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account C filed on April 16, 1998 (File No. 33-89848).
##### To be filed by Pre-Effective Amendment to this Registration Statement.
Item 25. Directors and Officers of the Depositor
Our Directors and senior officers* are:
<TABLE>
<CAPTION>
Directors*
<S> <C>
Foggie, Samuel L. Banking and Finance Industry Executive
Hallett, Carol B. President, Chief Executive Officer; Air Transport Association of America
Heller, Jeffrey M. President, Chief Operating Officer; Electronic Data Systems
Osborne, Thomas W. Former Head Football Coach, University of Nebraska - Lincoln
Plunkett III, Hugh V. Attorney (Plunkett, Schwartz & Petersen)
Sampson, Richard J. Retired Group Insurance Executive (United of Omaha Life Insurance Company)
Straus, Oscar S. Investments; President, The Daniel and Florence Guggenheim Foundation
Sturgeon, John A. President, Chief Operation Officer (United of Omaha Life Insurance Company)
Wayne, Michael A. Foundation and Cancer Institute Executive
Weekly, John W. Chairman of the Board and Chief Executive Officer (United of Omaha Life Insurance Company) Officers*
John W. Weekly Chairman of the Board, Chief Executive Officer
John A. Sturgeon President, Chief Operation Officer
G. Ronald Ames Executive Vice President (Small Group and Information Services)
Robert B. Bogart Executive Vice President (Human Resources)
Stephen R. Booma Executive Vice President (Managed Care)
Cecil D. Bykerk Executive Vice President (Chief Actuary)
James L. Hanson Executive Vice President (Information Services)
Kim Harm Executive Vice President (Customer Services)
Lawrence F. Harr Executive Vice President (Executive Counsel)
Randall C. Horn Executive Vice President (Group Insurance)
M. Jane Huerter Executive Vice President (Corporate Secretary; Corporate Administration)
John L. Maginn Executive Vice President (Treasurer; Chief Investment Officer)
William C. Mattox Executive Vice President (Federal Affairs)
Thomas J. McCusker Executive Vice President (General Counsel)
James N. Plato Executive Vice President (Individual Insurance)
Tommie D. Thompson Executive Vice President (Corporate Comptroller)
</TABLE>
*Business address for all directors and officers is Mutual of Omaha
Plaza, Omaha, Nebraska 68175.
C-2
<PAGE>
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
<TABLE>
<CAPTION>
Name of Corporation (where organized) Type of Corporation
<S> <C>
Mutual of Omaha Insurance Company (NE) Accident & Health Insurance
KFS Corporation (NE) Holding corporation
Kirkpatrick, Pettis, Smith, Polian Inc. (NE) Registered broker-dealer & investment advisor
KPM Investment Management, Inc. (NE) Investment advisor
Kirkpatrick Pettis Trust Company (NE) Trust company
Mutual of Omaha Health Plans, Inc. (NE) Holding corporation
Exclusive Healthcare, Inc. (NE) HMO
Mutual of Omaha of Colorado, Inc. (CO) (50%) HMO
Mutual of Omaha Health Plans of Lincoln, Inc. (NE) Staff Model HMO
Preferred Health Alliance, Inc. (NE) (51%) Joint venture w/physician & hospital organization
Mutual of Omaha Dental Plans of Nebraska, Inc. (NE) Limited pre-paid DHMO
Mutual of Omaha Health Plans of Indiana, Inc. (IN) HMO
Mutual of Omaha Health Plans of Ohio, Inc. (OH) HMO
Mutual of Omaha of South Dakota & Community Health
Plus HMO, Inc. (SD) HMO
Mutual of Omaha Tri-State Health Plans, Inc. (TN) HMO
Mutual of Omaha Holdings, Inc. (NE) Holding corporation
innowave incorporated (NE) Markets water distillation products
Mutual Asset Management Co. (NE) Asset management services
Mutual of Omaha Investor Services, Inc. (NE) Registered securities Broker-Dealer
Mutual of Omaha Marketing Corporation (NE) Markets health insurance
Omex Realty, Inc. (NE) Real estate investments
Mutual of Omaha U.K. Limited (U.K.) Insurance in United Kingdom (inactive)
The Omaha Indemnity Company (WI) Property & casualty insurance (no new business since 1986)
Omaha Property and Casualty Insurance Company (NE) Property & casualty insurance
Adjustment Services, Inc. (NE) Claims adjusting services
Tele-Trip Company, Inc. (DE) Markets travel/flight insurance in airports
United of Omaha Life Insurance Company (NE) Life, H&A insurance/annuities
Companion Life Insurance Company (NY) Life insurance/annuities
Mutual of Omaha Structured Settlement Company, Inc. (CT) Structured settlements
Mutual of Omaha Structure Settlement Company of
New York, Inc. (NY) Structured settlements
United World Life Insurance Company (NE) Accident & health and life insurance
United Properties Co. (CA) (50%) Real estate general partnership
</TABLE>
*Subsidiaries of subsidiaries are indicated by indentations.
Item 27. Number of Policyowners
As of December 31, 1998, there were ________ Owners of the Policies.
Item 28. Indemnification
The Nebraska Business Corporation Act (Section 21-2004(15)) provides for
permissive indemnification in certain situations, mandatory indemnification in
other situations, and prohibits indemnification in certain situations. The
Nevada Business Corporation Act also specifies procedures for determining when
indemnification payments can be made.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of
United of Omaha pursuant to the foregoing provisions, or otherwise, United of
Omaha 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 United of Omaha of expenses
incurred or paid by a director, officer or controlling person in connection with
the securities being registered), United of Omaha 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. With respect to indemnification, Section XI of
United of Omaha's Articles of Incorporation provides as follows:
An outside director of the Company shall not be personally liable
in the Company on its Stockholders for monetary damages for breach of
fiduciary duty as a director, except for liability for: (i) any act or
omission not in good faith which involves intentional misconduct or a
knowing violation of the law; (ii) any transaction from which the outside
director derived an improper direct or indirect financial benefit; (iii)
paying or approving a dividend which is in violation of Nebraska law; (v)
any act or omission which violates a declaratory or injunctive order
obtained by the Company or its Stockholders; and (v) any act or omission
occurring prior to the effective date of the amendments to the Articles of
Incorporation of the Company incorporating this ARTICLE XI.
C-3
<PAGE>
For purposes of this ARTICLE XI, an outside director shall mean a
member of the Board of Directors who is not an officer or a person who may
control the conduct of the Company through management agreements, voting
trusts, directorships in related corporations, or any other device or
relationship.
<PAGE>
If the Nebraska Business Corporation Act is amended after
approval by the Stockholders of this ARTICLE XI to authorize corporate
action further eliminating or limiting the personal liability of
directors, then the liability of a director of the Company shall be
eliminated or limited to the fullest extent permitted by the Nebraska
Business Corporation Act as so amended.
Any repeal or modification of the foregoing ARTICLE XI by the
Stockholders of the Company shall not adversely affect any right or
protection of a director of the Company existing at the time of such
repeal or modification.
Article VII of United of Omaha's Bylaws provides as follows:
Any person made or threatened to be made a party to any action or
proceeding, whether civil or criminal, by reason of the fact that such
person then is or was a director, officer, employee, or agent of the
Company (or is or was serving at the request of the Company in any such
capacity for an other legal entity or enterprise, shall be indemnified by
the Company against expense, judgements, fines, and amounts paid in
settlement to the full extent that such persons are permitted to be
indemnified by the laws of the State of Nebraska as in effect as of any
date of determination. The provisions of this Article shall not adversely
affect any right to indemnification which any person may have apart from
the provisions of this Article.
Item 29. Principal Underwriter
(a) In addition to Registrant, Mutual of Omaha Investor Services is
the Principal Underwriter for policies offered by United of Omaha Life Insurance
Company through United of Omaha Separate Account B and offered by Companion Life
Insurance Company through Companion Life Separate Account C and Companion Life
Separate Account B.
(b) The directors and officers of Mutual of Omaha Investor Services,
Inc. (principal address: Mutual of Omaha Plaza, Omaha, Nebraska 68175) are as
follows:
NAME TITLE
John W. Weekly Chairman, Director
Richard A. Witt President, Director
William J. Bluvas Vice President, Finance and Treasurer
M. Jane Huerter Secretary and Director
Kimberly S. Harm Director
Lawrence F. Harr Director
Ronald W. Leach Director
John L. Maginn Director
(c) Mutual of Omaha Investor Services, Inc. ("MOIS") is the
principal underwriter of the Policies. Commissions payable to a broker-dealer
will be up to 7.5% of Purchase Payments. For the fiscal year ended December 31,
1998, United of Omaha paid $____________ in total compensation to MOIS; of this
amount MOIS retained $___________ as concessions for its services as Principal
Underwriter and for distribution concessions, with the remaining amount paid to
other broker-dealers.
C-4
<PAGE>
Item 30. Location of Accounts and Records
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder,
are maintained by United of Omaha Life Insurance Company at Mutual of Omaha
Plaza, Omaha, Nebraska 68175.
Item 31. Management Services.
All management policies are discussed in Part A or Part B of this
registration statement.
Item 32. Undertakings
(a)Registrant undertakes that it will file a post-effective
amendment to this registration statement as frequently as necessary to ensure
that the audited financial statements in the registration statement are never
more than 16 months old for so long as Purchase Payments under the Policy may be
accepted.
(b)Registrant undertakes that it will include either (i) a postcard
or similar written communication affixed to or included in the Prospectus that
the applicant can remove to send for a Statement of Additional Information or
(ii) a space in the Policy application that an applicant can check to request a
Statement of Additional Information.
(c)Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form promptly upon written or oral request to United of Omaha at the
address or phone number listed in the Prospectus.
(d) Registrant represents that the fees and charges under the
Policy, in the aggregate, are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by United of Omaha.
Section 403(b) Representations
United of Omaha represents that it is relying on a no-action letter
dated November 28, 1988, to the American Council of Life Insurance (Ref. No.
IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment
Company Act of 1940, in connection with redeemability restrictions on Section
403(b) Policies, and that paragraphs numbered (1) through (4) of that letter
will be complied with.
Statement Pursuant to Rule 6c-7: Texas Optional Retirement Program
United of Omaha and the Variable Account rely on 17 C.F.R. ss. 270.6c-7,
and represent that the provisions of that Rule have been or will be complied
with.
C-5
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant certifies that it meets all of the requirements for the
effectiveness of this Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1993 and has caused this Posteffective Amendment No. 4 to the
Registration Statement to be signed on its behalf, in the City of Omaha and
State of Nebraska, on this 23rd day of December, 1998.
UNITED OF OMAHA SEPARATE ACCOUNT C
UNITED OF OMAHA LIFE INSURANCE COMPANY
Depositor
/s/ Kenneth W. Reitz
---------------------------------------
By: Kenneth W. Reitz
First Vice President & Counsel
As required by the Securities Act of 1933, this Post-effective Amendment
No. 4 to the Registration Statement has been signed by the following persons in
the capacities and on the duties indicated.
Signatures Title Date
/s/ John W. Weekly
by__________________________* Chairman of the Board, 12/23/1998
John W. Weekly Chief Executive Officer
/s/ John A. Sturgeon
by__________________________* President, Chief Operation Officer 12/23/1998
John A. Sturgeon
/s/ Tommie D. Thompson
By__________________________* Executive V.P., Corporate Comptroller 12/23/1998
(Principal Financial Officer and
Principal Accounting Officer)
/s/ Samuel L. Foggie
by__________________________* Director 12/23/1998
Samuel L. Foggie
/s/ Hugh V. Plunkett, III
by__________________________ Director 12/23/1998
Hugh V. Plunkett, III
/s/ Richard J. Sampson
by__________________________* Director 12/23/1998
Richard J. Sampson
/s/ Oscar S. Straus
by__________________________* Director 12/23/1998
Oscar S. Straus
/s/Michael A. Wayne
by__________________________* Director 12/23/1998
Michael A. Wayne
* Signed by Kenneth W. Reitz under Powers of Attorney executed on May 20, 1997.
