<PAGE>
As filed with the Securities and Exchange Commission on March 15, 1996
FILE NO. 33-01781
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
PRE-EFFECTIVE AMENDMENT NO. 1
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
------------
A. Exact name of trust:
CHUBB SEPARATE ACCOUNT C
B. Name of depositor:
CHUBB LIFE INSURANCE COMPANY OF AMERICA
C. Complete address of depositor's principal executive offices:
One Granite Place
Concord, NH 03301
D. Name and complete address of agent for service:
Ronald R. Angarella
President
Chubb Securities Corporation
One Granite Place
Concord, NH 03301
Copies to:
Charlene Grant, Esq. Joan E. Boros, Esq.
Chubb Life Insurance Katten Muchin & Zavis
Company of America 1025 Thomas Jefferson Street, N.W.
One Granite Place East Lobby, Suite 700
Concord, NH 03301 Washington, D.C. 20007
------------
E. Title and amount of securities being registered:
Units of Interest in the Separate Account under Individual and Survivorship
Flexible Premium Variable Life Insurance Policies.
F. Proposed maximum offering price to the public of the securities being
registered:
Registration of Indefinite Amount of Securities under the Securities Act of
1933 pursuant to Rule 24f-2 under the Investment Company Act of 1940.
G. Amount of filing fee:
An indefinite amount of the Registrant's Securities has been registered
pursuant to a declaration, under Rule 24f-2 under the Investment Company
Act of 1940, set out in the Form S-6 Registration Statement. Pursuant to
paragraph (b)(2) the issuer need not file a Rule 24f-2 Notice because it
has not sold any securities pursuant to such declaration.
H. Approximate date of proposed public offering:
As soon as practicable after the effective date.
Registrant hereby amends this Registration Statement under the Securities Act
of 1933 on such date or dates as may be necessary to delay its effective date
until Registrant shall file a further amendment which specifically states that
this Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the Registration Statement
shall become effective on such date as the Commission, acting pursuant to
Section 8(a), may determine.
Registrant elects to be governed by Rule 6e-3(T)(b)(13)(i)(B) under the
Investment Company Act of 1940, with respect to the policies described in the
Prospectus.
<PAGE>
RECONCILIATION AND TIE BETWEEN ITEMS IN FORM N-80-2 AND THE PROSPECTUS
<TABLE>
<CAPTION>
Item No. of
Form N-8B-2 Caption of Prospectus
- ----------- -----------------------------------------------------
<S> <C>
1......... Cover Page
2......... Cover Page
3......... Not Applicable
4......... Distribution of the Policy
5......... Chubb Life Insurance Company of America; The Funds
6......... Chubb Separate Account C
7......... Not Required
8......... Not Required
9......... Legal Proceedings
10......... Summary, The Funds; The Policies; Policy Benefits and Rights;
Calculation of Accumulation Value; Cash Value Benefits; Other
Matters; Federal Tax Matters
11......... Chubb Separate Account C, The Funds
12......... The Funds; Distribution of the Policy The Funds; General; Charges
and Deductions; Optional
13......... Insurance Benefits; Distribution of the Policy
14......... The Policies
15......... The Policies
16......... Chubb Separate Account C, The Funds
17......... Transfers; Telephone Transfers and Reallocations; Policy Lapse;
Reinstatement; Policy "Free Look", Optional Insurance Benefits;
Cash Value Benefits
18......... Separate Account C
19......... Annual Report; Confirmation
20......... Not Applicable
21......... Policy Loans
22......... Chubb Separate Account C, Telephone Transfers and Reallocations
23......... Management of Chubb Life
24......... Not Applicable
</TABLE>
<PAGE>
<TABLE>
<S> <C>
25......... Chubb Life Insurance Company of America
26......... Not Applicable
27......... Chubb Life Insurance Company of America
28......... Chubb Life Insurance Company of America; Management of Chubb Life
29......... Chubb Life Insurance Company of America
30......... Not Applicable
31......... Not Applicable
32......... Not Applicable
33......... Not Applicable
34......... Not Applicable
35......... Chubb Life Insurance Company of America
36......... Not Applicable
37......... Not Applicable
38-41...... Distribution of the Policy
42......... Not Applicable
43......... Not Applicable
44......... The Funds; The Policies; Charges and Deductions; Calculation of
Accumulation Value; Cash Value Benefits; Distribution of the
Policy
45......... Not Applicable
46......... The Funds; The Policies; Charges and Deductions; Calculation of
Accumulation Value; Cash Value Benefits
47......... Not Applicable
48......... Not Applicable
49......... Not Applicable
50......... Chubb Separate Account C
51......... Cover Page; The Policies; Charges and Deductions; Policy Benefits
and Rights; Calculation of Accumulation Value; Cash Value
Benefits; Other Matters
52......... The Funds; Other Matters
53......... Federal Tax Matters
54......... Not Applicable
55......... Not Applicable
56......... Not Applicable
57......... Not Applicable
58......... Not Applicable
59......... Financial Statements
</TABLE>
<PAGE>
THE CHUBB ADVISOR SERIES
CHUBB SEPARATE ACCOUNT C
INDIVIDUAL AND SURVIVORSHIP FLEXIBLE
PREMIUM VARIABLE LIFE INSURANCE POLICIES
Issued by
Chubb Life Insurance Company of America
One Granite Place
Concord, New Hampshire 03301
(603) 226-5000
This Prospectus describes two forms of a flexible premium variable life
insurance policy issued by Chubb Life Insurance Company of America ("Chubb
Life"): an individual flexible premium variable life insurance policy form
("Chubb Advisor I") and a survivorship flexible premium variable life insurance
policy form ("Chubb Advisor II") (collectively the "Policy" or "Policies"). The
Policies are designed to provide a Policyowner with both lifetime insurance
protection and maximum flexibility in connection with premium payments and death
benefits, together with the opportunity to participate in the investment
experience of Chubb Separate Account C ("Separate Account C"). Although each
Policy contains a schedule of intended premium payments ("Planned Periodic
Premiums"), and an intended frequency of premium payments ("Premium Frequency"),
a Policyowner may, subject to certain restrictions, vary the frequency and
amount of the premium payments and increase or decrease the level of life
insurance benefits payable under the Policy. The flexibility allows a
Policyowner to provide for changing insurance needs within the framework of a
single insurance policy. Unlike traditional insurance protection providing fixed
benefits, Accumulation Value under the Policies will increase with positive
investment experience and decrease with negative investment experience of
Separate Account C. Accumulation Value in Separate Account C is not guaranteed.
Chubb Advisor I provides life insurance coverage on one Insured, with the
Death Benefit payable at the Insured's death. Chubb Advisor II provides life
insurance coverage on two Insureds, with the Death Benefit payable upon the
death of the last surviving Insured. If Net Premiums are allocated to Separate
Account C, the amount of the Death Benefit may reflect the investment experience
of the chosen Divisions, as well as the frequency and amount of premiums, any
withdrawals of Cash Value ("withdrawals"), and applicable fees and charges. As
long as the Policy remains in force, the Death Benefit will not be less than the
current Specified Amount, reduced by any outstanding indebtedness and any due
and unpaid fees and charges. The minimum initial Specified Amount is $250,000.
After a withdrawal, the Specified Amount may not be reduced to less than
$125,000.
The Death Benefit is payable under two options. The Policyowner will make two
elections to determine the Death Benefit under the Policy. First, the
Policyowner will choose one of two Death Benefit options offered under the
Policy. Second, the Policyowner will choose the Death Benefit qualification
test, which is the method for qualifying the Policy as a life insurance contract
for purposes of Federal tax law. In general, under Death Benefit Option I, the
Death Benefit payable under the Policy is equal to the current Specified Amount;
under Death Benefit Option II, the Death Benefit is equal to the current
Specified Amount plus the Accumulation Value of the Policy on the date of death.
The Policy will also increase the Death Benefit if necessary to ensure that the
Policy will continue to qualify as life insurance under Federal tax laws. The
Policyowner may not change the Death
<PAGE>
Benefit qualification test once selected but may, subject to certain
restrictions, change from Death Benefit Option I to Option II, and vice versa,
after the Policy has been issued.
There is an initial premium, based on Issue Age, underwriting class and
Specified Amount, that must be paid at issue. If a Policyowner chooses the
Guaranteed Death Benefit Rider, the Death Benefit will be guaranteed to never be
less than the Specified Amount. No premium payment may be less than $250.
The Policy will remain in force so long as Cash Value exceeds indebtedness and
Cash Value less indebtedness is sufficient to pay certain monthly charges. The
Cash Value equals the Accumulation Value less any Surrender Charge. Accumulation
Value in Separate Account C will reflect the investment experience of the chosen
Divisions, the amount and frequency of premium payments, any withdrawals, and
applicable fees and charges. Adherence to the schedule of Planned Periodic
Premiums will not assure the Policy will remain in force.
The Policyowner bears the entire investment risk for all amounts allocated to
Separate Account C; no minimum Accumulation Value is guaranteed and the
Accumulation Value could decline to zero. So long as Cash Value exceeds
indebtedness and subject to certain conditions described in this Prospectus, a
Policyowner may obtain policy loans at any time after the first Policy
anniversary and may make withdrawals at any time. Both withdrawals and policy
loans must be made prior to the Policy's Maturity Date.
The Policyowner may allocate Net Premiums to one or more of the Divisions or
to Chubb Life's General Account on the Allocation Date. Each Division will
invest solely in a corresponding series (a "Portfolio") of a registered
management investment company (a "Fund"). Prior to the Allocation Date, the Net
Premiums paid will be deposited in Chubb Life's General Account. There is a
"free look" period during which the Policyowner may cancel the Policy. If the
Policyowner elects during this "free look" period to cancel the Policy, Chubb
Life will reimburse, within seven days from the date the Policy is surrendered
to Chubb Life, the full amount of premium paid. The accompanying Prospectuses
for the Funds and the Statements of Additional Information, available on
request, describe the investment objectives and risks of the Portfolios. The
Policies described in this Prospectus are not available in all States.
Chubb Life believes the Policy will in general receive favorable tax treatment
under the Internal Revenue Code of 1986, as amended ("the Code"). However,
because there are issues as to which the law is developing or changing, there
can be no guarantees. Information in this Prospectus is not intended as tax
advice and Chubb Life recommends that prospective purchasers rely only on the
advice of a qualified tax adviser.
Prospective purchasers of this Policy are advised that replacement of existing
insurance coverage may not be financially advantageous and should consult with
their financial advisers with respect to the Policy. It may also not be
advantageous to purchase this Policy if the prospective purchaser already owns a
flexible premium variable life insurance policy.
This Prospectus generally describes only the portion of the Policy involving
Separate Account C. For a brief summary of Chubb Life's General Account, see
"THE GENERAL ACCOUNT."
This Prospectus Is Valid Only If Accompanied Or Preceded By Current Prospectuses
For The Funds.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
2
<PAGE>
EXCHANGE COMMISSION OR ANY STATE SECURITIES DIVISION, NOR HAS THE COMMISSION OR
ANY STATE SECURITIES DIVISION, PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Please Read This Prospectus Carefully and Retain It For Future Reference.
The Date of This Prospectus is November 20, 1996.
3
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
DEFINITIONS.......................................................... 7
SUMMARY.............................................................. 9
CHUBB LIFE INSURANCE COMPANY OF AMERICA.............................. 15
CHUBB SEPARATE ACCOUNT C............................................. 15
Divisions............................................................ 15
THE FUNDS............................................................ 16
General.............................................................. 16
Chubb American Fund, Inc. ........................................... 17
Chubb Series Trust................................................... 17
Investment Objectives................................................ 18
THE POLICIES......................................................... 18
General.............................................................. 18
Payment of Premiums.................................................. 19
Guaranteed Death Benefit Premiums.................................... 19
Premium Limitations.................................................. 19
Allocation of Premiums............................................... 19
Transfers............................................................ 20
Telephone Transfers, Loans and Reallocations......................... 22
Policy Lapse......................................................... 22
Reinstatement........................................................ 23
Policy "Free Look"................................................... 23
CHARGES AND DEDUCTIONS............................................... 23
Premium Charges...................................................... 23
Monthly Deduction.................................................... 24
Mortality Risk Charge................................................ 26
Surrender Charge..................................................... 26
Administrative Fees.................................................. 26
Other Charges........................................................ 26
POLICY BENEFITS AND RIGHTS........................................... 27
</TABLE>
4
<PAGE>
Death Benefits....................................................... 27
Guaranteed Death Benefit............................................. 31
Combined Requests.................................................... 31
Maturity of the Policy............................................... 31
Optional Insurance Benefits.......................................... 31
Settlement Options................................................... 33
CALCULATION OF ACCUMULATION VALUE.................................... 34
Unit Values.......................................................... 34
Net Investment Factor................................................ 35
CASH VALUE BENEFITS.................................................. 35
Surrender Privileges................................................. 36
Policy Loans......................................................... 37
OTHER MATTERS........................................................ 38
Voting Privileges.................................................... 38
Additions, Deletions or Substitutions of Investments................. 39
Annual Report........................................................ 39
Confirmation......................................................... 40
Limitation on Right to Contest....................................... 40
Misstatements........................................................ 40
Suicide.............................................................. 40
Beneficiaries........................................................ 41
Postponement of Payments............................................. 41
Assignment........................................................... 41
Illustration of Benefits and Values.................................. 41
Non-Participating Policy............................................. 41
THE GENERAL ACCOUNT.................................................. 41
5
<PAGE>
General Description.................................................. 42
General Account Accumulation Value................................... 42
Determination of Charges............................................. 43
Premium Deposit Fund.................................................
DISTRIBUTION OF THE POLICY........................................... 43
Group or Sponsored Arrangements...................................... 43
MANAGEMENT OF CHUBB LIFE............................................. 44
Executive Officers and Directors of Chubb Life....................... 44
Executive Officers (Other Than Directors)............................ 45
STATE REGULATION OF CHUBB LIFE....................................... 46
FEDERAL TAX MATTERS.................................................. 46
Tax Considerations................................................... 46
Policy Proceeds...................................................... 46
Charge for Chubb Life Income Taxes................................... 50
EMPLOYEE BENEFIT PLANS............................................... 51
LEGAL PROCEEDINGS.................................................... 51
EXPERTS.............................................................. 51
REGISTRATION STATEMENT............................................... 51
ILLUSTRATIONS........................................................ 51
[THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH SUCH
OFFERING MAY NOT LAWFULLY BE MADE. CHUBB LIFE DOES NOT AUTHORIZE ANY INFORMATION
OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER
THAN AS CONTAINED IN THIS PROSPECTUS, THE PROSPECTUSES OF THE FUNDS OR THE
STATEMENTS OF ADDITIONAL INFORMATION OF THE FUNDS.]
6
<PAGE>
DEFINITIONS
In addition to terms which are defined elsewhere in this Prospectus, the
following words and phrases shall have the indicated meanings:
ACCUMULATION VALUE-The total amount that a Policy provides for investment at
any time plus the amount held as collateral for Policy Debt.
AGE-The Insured's age at his or her nearest birthday.
ALLOCATION DATE-The date when the initial Net Premium is placed in the
Divisions and the General Account in accordance with the Policyowner's
allocation instructions in the application. The Allocation Date is 20 days from
the date the Policy is issued.
ATTAINED AGE-The age of the Insured at the last Policy anniversary.
BENEFICIARY-The person designated by the Policyowner in the application to
receive the Death Benefit proceeds. If changed, the Beneficiary is as shown in
the latest change filed with Chubb Life. If no Beneficiary survives the Insured,
the Policyowner or the Policyowner's estate will be the Beneficiary. The
interest of a Beneficiary may be subject to that of any assignee.
CASH VALUE-The Accumulation Value less any applicable Surrender Charge. This
amount less the amount of Policy Debt is payable to the Policyowner on the
earlier of surrender of the Policy or the Maturity Date.
CODE-The Internal Revenue Code of 1986, as amended.
DATE OF RECEIPT-Any business day of Chubb Life prior to 4:00 P.M. Eastern
time, on which a notice or premium payment is received at Chubb Life's home
office.
DEATH BENEFIT-The amount, less the amount of Policy Debt, which is payable to
the Beneficiary under the Policy upon the death of the Insured under Chubb
Advisor I and the death of the last surviving Insured under Chubb Advisor II.
DIVISION-A separate division of Separate Account C which invests exclusively
in the shares of a specified Portfolio of a Fund.
FUNDS-The registered management investment companies whose shares of select
separate series (the "Portfolios") are offered to corresponding Divisions.
GENERAL ACCOUNT-The assets of Chubb Life other than those allocated to
Separate Account C or any other separate account.
INSURED(S)-The person(s) upon whose life the Policy is issued.
ISSUE AGE-The Insured's age at his or her nearest birthday on the Policy Date.
JOINT EQUAL AGE-Chubb Advisor II provides for a calculation pursuant to a
formula which converts the specific age, gender and underwriting classifications
of the two Insureds into one age. The Joint Equal Age is used in determining
issue age limitations and guaranteed death benefit premiums.
LOAN VALUE-Generally, 90% of a Policy's Cash Value on the date of a loan.
MATURITY DATE-Unless otherwise specified, the Maturity Date will be the Policy
anniversary nearest to the Insured's 100th birthday for Chubb Advisor I and the
younger Insured's 100th birthday for Chubb Advisor II.
MONTHLY ANNIVERSARY DATE-The same day in each month as the Policy Date.
7
<PAGE>
NET PREMIUM-The gross premium less a 2.5% State Premium Tax Charge, a 1.25%
Federal DAC Tax Charge and a 3% Sales Charge.
OWNER (POLICYOWNER)-The person or entity so designated in the application or
as subsequently changed who may exercise all rights under the Policy.
POLICY DATE-The date set forth in the Policy, which is the date requested by
the Owner. If no date is requested, it is the date the Policy is issued. The
Policy Date is the date from which policy years, policy months, and policy
anniversaries will be determined. If the Policy Date should fall on the 29th,
30th, or 31st of a month, the Policy Date will be the 1st of the following
month.
POLICY DEBT-The sum of all unpaid policy loans and accrued interest thereon.
PORTFOLIO-A separate investment series of one of the Funds.
PROOF OF DEATH-One or more of the following:
(a) A copy of a certified death certificate.
(b) A copy of a certified decree of a court of competent jurisdiction as to
the finding of death.
(c) A written statement by a medical doctor who attended the Insured.
(d) Any other proof satisfactory to Chubb Life.
SEC-The United States Securities and Exchange Commission.
SEPARATE ACCOUNT C-Chubb Separate Account C, a separate investment account
created by Chubb Life to receive and invest Net Premiums paid under the Policy
and other flexible premium variable life insurance policies offered by Chubb
Life.
SPECIFIED AMOUNT-The face amount of the Policy which is the minimum death
benefit payable under the Policy.
STATE-"State" means any State of the United States, the District of Columbia,
Puerto Rico, the Virgin Islands, or any other possession of the United
States.
SURRENDER CHARGE-A contingent deferred sales charge assessed only upon
surrender or withdrawal.
VALUATION DATE-Each day, as of the close of regular trading on the New York
Stock Exchange, which is currently 4:00 P.M. Eastern time, or any other days as
may be required.
VALUATION PERIOD-The period between two successive Valuation Dates, commencing
at the close of regular trading on the New York Stock Exchange on each Valuation
Date and ending at the close of regular trading on the New York Stock Exchange
on the next succeeding Valuation Date.
8
<PAGE>
SUMMARY
The discussion in this Prospectus assumes that there is no policy loan
outstanding and that State variations will be covered by prospectus supplement
or policy endorsement, as appropriate. The terms under which the Policies are
issued may also vary from those described in this Prospectus based on particular
circumstances. The description of the Policies in this Prospectus is subject to
the terms of the Policy purchased by a Policyowner and any supplement or
endorsement to it. An applicant may review a copy of the Policy and any
supplement or endorsement to it on request.
WHAT ARE THE VARIABLE LIFE POLICIES BEING OFFERED?
This Prospectus describes two forms of a flexible premium variable life
insurance policy issued by Chubb Life Insurance Company of America ("Chubb
Life"). Chubb Advisor I provides life insurance coverage on one Insured, with
the Death Benefit payable upon the death of such Insured. Chubb Advisor II
provides life insurance coverage on two Insureds, with a Death Benefit payable
only when the last surviving Insured dies. The Policyowner may, subject to
certain limitations, make premium payments in any amount at any frequency. The
Policies are life insurance contracts with death benefits, cash values, and
other features traditionally associated with life insurance. They are called
"flexible premium" because, unlike many insurance contracts, there are no fixed
schedules for premium payments, although each Policyowner may establish a
schedule of premium payments ("Planned Periodic Premiums"). This flexibility
permits a Policyowner to provide for evolving insurance needs within a single
insurance product. The minimum initial Specified Amount is $250,000. A
Policyowner may increase or decrease coverage. Increasing coverage under the
Policy, rather than purchasing another policy, may save additional
administrative costs. Increasing coverage under the Policy or purchasing another
policy may require new evidence of insurability. Increasing or decreasing
coverage may have certain tax consequences. See "FEDERAL TAX MATTERS".
The Policies generally work as follows: a Policyowner periodically pays a
premium to Chubb Life. Chubb Life subtracts an amount for the State Premium Tax
Charge, the Federal DAC Tax Charge and the Sales Charge from each premium. Chubb
Life then places the Net Premium into one or more of the six Divisions and/or
Chubb Life's General Account as directed by the Policyowner. Each Division
invests its assets in a corresponding Portfolio of one of the Funds. During the
year, Chubb Life takes charges from each Division and credits or charges each
Division with its respective investment experience. The Cost of Insurance
Charge, which is deducted from each Policy's Accumulation Value, varies monthly
based on the sex, Issue Age, policy year, rating class of the Insured(s),
Specified Amount of the Policy, Death Benefit option and applicable corridor
percentage. A Policyowner will incur a Surrender Charge for a surrender or
withdrawal during the first five policy years. See "CHARGES AND DEDUCTIONS-
Surrender Charge".
The Death Benefit is payable under two options. The Policyowner will make two
elections to determine the Death Benefit under the Policy. First, the
Policyowner will choose one of two Death Benefit options offered under the
Policy. Second, the Policyowner will choose the Death Benefit qualification
test, which is the method for qualifying the Policy as a life insurance contract
for purposes of Federal tax law. In general, under Death Benefit Option I, the
Death Benefit payable under the Policy is equal to the current Specified Amount;
under Death Benefit Option II, the Death Benefit is equal to the current
Specified Amount plus the Accumulation Value of the Policy on the date of death.
The Policy will also increase the Death Benefit if necessary to ensure that the
Policy will continue to qualify as life insurance under Federal tax laws. The
Policyowner may not change the Death Benefit qualification test once selected
but may, subject to certain restrictions, change from Death Benefit Option I to
Option II, and vice versa, after the Policy has been issued. See "POLICY
BENEFITS AND RIGHTS-Death Benefits".
All persons insured must meet specified age limits and certain health and
9
<PAGE>
other standards called "Underwriting Standards". The smoking status of the
Insureds is generally reflected in the cost of insurance rates. However, for
Chubb Advisor I, distinctions between smokers and nonsmokers are only made for
Insureds age 15 and over. Policies issued in certain jurisdictions will not
directly reflect the sexes of the Insureds in either the premium rates or the
charges and values under the Policy.
WHAT IS THE AMOUNT OF THE PREMIUMS?
Premiums are flexible and the Policyowner may choose the amount and frequency
of premium payments provided each premium is at least $250.
The first premium is due on the Policy Date. Premiums are paid in advance,
generally one year at a time; however, Chubb Life permits semi-annual, quarterly
and monthly premium payments. Changes in Premium Frequency and increases or
decreases in the amount of Planned Periodic Premiums may be made by the
Policyowner. Chubb Life will notify Policyowners annually if any premiums would
cause their Policies to be deemed to be modified endowment contracts and allow
for a refund of the excess premium. See "FEDERAL TAX MATTERS -Policy Proceeds".
Failure to pay premiums in accordance with the schedule of Planned Periodic
Premiums will not automatically cause the Policy to lapse. Unless the Guaranteed
Death Benefit Rider is in force and the conditions under the Rider satisfied, it
will lapse when the Cash Value less outstanding Policy Debt is insufficient to
pay the monthly deduction for certain charges ("monthly deduction") and a grace
period expires without a sufficient payment by the Policyowner. Conversely,
payment of premiums in accordance with the schedule of Planned Periodic Premiums
does not necessarily mean that the Policy will remain in force. See "THE
POLICIES-Policy Lapse".
The Guaranteed Death Benefit Rider guarantees that the Death Benefit will
never be less than the Specified Amount provided that a cumulative minimum
premium requirement is met.
WHAT IS CHUBB SEPARATE ACCOUNT C?
Separate Account C is a separate account established by Chubb Life pursuant
to the insurance laws of the State of New Hampshire and organized as a
registered unit investment trust under the Investment Company Act of 1940 (the
"1940 Act"). Such registration does not involve any supervision by the
Securities and Exchange Commission (the "SEC") of the management or
investment practices or policies of Separate Account C.
WHAT ARE THE FUNDS?
The Policies currently offer six Divisions, each of which buys shares at
net asset value of the corresponding series (a "Portfolio") of a registered
investment company (a "Fund"). The current Funds and Portfolios are as
follows:
Chubb America Fund, Inc.
- Money Market Portfolio
- Bond Portfolio
10
<PAGE>
- Growth and Income Portfolio
Chubb Series Trust
- Resolute International Equity Portfolio
- Resolute Small Company Portfolio
- Resolute Equity Portfolio
See "THE FUNDS".
WHAT ARE THE CHARGES MADE BY CHUBB LIFE?
STATE PREMIUM TAX CHARGE AND FEDERAL DAC TAX CHARGE. These charges are
deducted from each premium payment, currently 2.5% for state premium taxes
and 1.25% as a Federal Deferred Acquisition Cost ("DAC") Tax Charge.
SALES CHARGE. A sales charge up to a maximum of 3% is deducted from each
premium payment. Also see below "Surrender or Withdrawal Charges".
MONTHLY EXPENSE RISK AND ADMINISTRATION CHARGES. These charges are calculated
each Monthly Anniversary Date and deducted from each Policy's Accumulation Value
in the Separate Account. The amount of the Expense Risk Charge varies based on
the Policy's Accumulation Value and will not exceed 0.20% of the Policy's
Accumulation Value on an annual basis. Chubb Life will realize income from this
charge to the extent it is not needed to pay expenses under the Policies. The
amount of the Administration Charge is 0.10% on an annual basis for the first
twenty policy years only.
COST OF INSURANCE CHARGE. This charge is calculated on each Monthly
Anniversary Date and deducted from each Policy's Accumulation Value. The charge
is based on the sex, Issue Age, policy year, rating class of the Insured(s),
Specified Amount, Death Benefit option and applicable corridor percentage.
Monthly cost of insurance rates will be determined by Chubb Life based upon its
expectations as to future mortality experience. Cost of insurance rates are
guaranteed not to exceed or be increased above the maximum charge based upon the
Commissioner's 1980 Standard Ordinary Mortality Table.
MORTALITY RISK CHARGE. This charge is imposed daily at an annual rate of .50%
on the assets of each Division. (This charge is not imposed on amounts held in
the General Account.) Chubb Life will realize income from this charge to the
extent it is not needed to provide benefits under the Policies.
SURRENDER OR WITHDRAWAL CHARGES. This contingent deferred sales charge is
imposed at the time of surrender or withdrawal during the first five policy
years. It declines annually from 5% to 0% of premiums paid in the first policy
year.
ADMINISTRATIVE CHARGE FOR WITHDRAWAL OR TRANSFER. Chubb Life charges $50 for
each withdrawal and for certain transfers between Divisions or between the
Divisions and the General Account. See "THE POLICIES -Transfers" for a
description of situations in which the Transfer Charge will be imposed.
GUARANTEED DEATH BENEFIT CHARGE. If the Guaranteed Death Benefit Rider is
11
<PAGE>
added to the Policy, a monthly charge of $.01 per $1,000 of Specified Amount
will be deducted each month from the Accumulation Value of the Policy.
CHARGE FOR OPTIONAL RIDER BENEFITS. An additional charge is required if the
Policyowner elects to purchase certain optional insurance benefits by rider.
Charges are deducted monthly from a Policy's Accumulation Value. See "POLICY
BENEFITS AND RIGHTS-Optional Insurance Benefits".
See "CHARGES AND EXPENSES" for a fuller description of charges under the
Policies.
UNDERLYING FUND FEES. An investment advisory fee is charged monthly against
each Portfolio of Chubb America Fund, Inc. at annual rates ranging from .40 to
.75 percent of each Portfolio's average daily net asset value. Compensation of
the subinvestment adviser of Chubb America Fund, Inc. is at annual rates ranging
from .25 to .50 percent of each Portfolio's average daily net asset value and is
paid by the investment adviser from the investment advisory fees described
above.
An investment advisory fee is changed monthly against each Portfolio of Chubb
Series Trust at annual rates ranging from .60 to .80 percent of each Portfolio's
average daily net asset value. Compensation of the sub-investment adviser of
Chubb Series Trust is at annual rates ranging from .40 to .60 percent of each
Portfolio's average daily net asset value and is paid by the investment adviser
from the investment advisory fees described above.
For more detailed information on the fees of the underlying funds, see "THE
FUNDS."
IS THERE A CHARGE AGAINST SEPARATE ACCOUNT C FOR FEDERAL INCOME TAX?
Currently no charge is made against any Division for Federal income taxes.
However, if Chubb Life incurs, or expects to incur, income taxes attributable
to any Division of this class of Policies in future years, it reserves the
right to make a charge. See the discussion of the Federal DAC Tax Charge under
"CHARGES AND DEDUCTIONS-Premium Charges".
HOW ARE AMOUNTS ALLOCATED TO EACH DIVISION OR THE GENERAL ACCOUNT?
The Policyowner indicates in the application the allocation of Net Premium
payments among the Divisions and the General Account. The initial Net Premium
is allocated on the Allocation Date and Net Premiums received after the
Allocation Date are allocated generally on the Date of Receipt. The minimum
percentage of any Net Premium payment allocated to any Division or the General
Account is 1%. The Policyowner may change his or her allocation of future
premium payments by written notice to Chubb Life or by telephone, if the proper
telephone authorization is on file, without payment of any fee or penalty.
WHAT IS THE RELATIONSHIP BETWEEN THE PREMIUM AND THE AMOUNT ALLOCATED TO THE
DIVISIONS?
The initial Net Premium is allocated by Chubb Life on the Allocation Date
among the Divisions and the General Account as directed by the Policyowner.
Prior to the Allocation Date the initial Net Premium is held in Chubb Life's
General Account. The initial Net Premium is the initial gross premium, plus any
additional premium paid prior to the Allocation Date, less the State Premium
Tax Charge, the Federal DAC Tax Charge and the Sales Charge. These charges also
apply to subsequent premium payments.
WHAT COMMISSIONS ARE PAID TO AGENTS?
The Policies are sold by agents who represent Chubb Life and are registered
representatives of Chubb Securities Corporation or other registered
broker-dealers. Commissions payable to agents are described under "DISTRIBUTION
OF THE POLICY".
WHAT IS THE DEATH BENEFIT?
The Death Benefit under Chubb Advisor I is the amount payable to the named
Beneficiary when the person insured under the Policy dies. The Death Benefit
under Chubb Advisor II is the amount payable to the named Beneficiary when the
last surviving Insured dies. The Death Benefit proceeds will equal the Death
12
<PAGE>
Benefit, plus any additional rider benefits included and then due, minus any
outstanding Policy Debt or unpaid cost of insurance charges or charges for
riders.
In the initial application, the Policyowner will make two elections to
determine the Death Benefit under the Policy. First, the Policyowner will choose
one of two Death Benefit options offered under the Policy. Second, the
Policyowner will choose the Death Benefit qualification test, which is the
method for qualifying the Policy as a life insurance contract for purposes of
Federal tax law. The available Death Benefit qualification tests available under
the Policy are the cash value accumulation test and the guideline premium
test.
ONCE ELECTED, THE DEATH BENEFIT QUALIFICATION TEST CANNOT BE CHANGED FOR THE
DURATION OF THE POLICY. If no Death Benefit qualification test or option is
designated, the guideline premium test under Option I will be assumed by Chubb
Life to have been selected.
The amount of life insurance proceeds payable under a Policy will depend upon
which of the two Death Benefit options available under a Policy is in effect, as
follows:
OPTION I: For Policies issued pursuant to the cash value accumulation test,
the Death Benefit equals the greater of the current Specified Amount or the
Accumulation Value of the Policy at the date of death multiplied by the corridor
percentage, as described below. For Policies issued pursuant to the guideline
premium test, the Death Benefit equals the greater of the current Specified
Amount or the Accumulation Value of the Policy at the date of death multiplied
by the corridor percentage, as described below.
OPTION II: The Death Benefit equals the current Specified Amount plus the
Accumulation Value of the Policy on the date of death. For Policies issued
pursuant to the cash value accumulation test, the Death Benefit will not be less
than the Accumulation Value on the date of death multiplied by the corridor
percentage. For Policies issued pursuant to the guideline premium test, the
Death Benefit will not be less than the Accumulation Value multiplied by the
corridor percentage. See "POLICY BENEFITS AND RIGHTS-Death Benefits".
Under the Guaranteed Death Benefit Rider the Death Benefit is guaranteed to
never be less than the Specified Amount provided that a cumulative minimum
premium requirement is met.
HOW DOES THE ACCUMULATION VALUE OF A POLICY VARY IN RELATION TO THE DIVISIONS'
INVESTMENT EXPERIENCE?
The Policy provides for Accumulation Value equal to the total of the Policy's
Accumulation Value in the Divisions and Accumulation Value in the General
Account. The Policy's Accumulation Value will reflect the amount and frequency
of premium payments, the investment experience of the Divisions, the value of
Net Premiums (Net Premiums plus credited interest), if any, allocated to the
General Account, policy loans, any withdrawals, and any charges imposed in
connection with the Policy. There is no minimum guaranteed Accumulation Value.
WHAT IS THE LOAN PROVISION AND HOW DOES A LOAN AFFECT THE DEATH BENEFIT,
ACCUMULATION VALUE AND CASH VALUE?
After the first policy anniversary, a Policyowner may borrow against the Cash
Value of his or her Policy. Generally, the maximum loan amount is 90% of the
Cash Value of the Policy on the date of the loan. Loan interest is payable at
13
<PAGE>
the end of each policy year and all Policy Debt outstanding will be deducted
from proceeds payable at the Insured's death for Chubb Advisor I and at the
death of the last surviving Insured for Chubb Advisor II, upon maturity, or
upon surrender.
When a policy loan is made, a portion of the Policy's Accumulation Value
sufficient to secure the loan will be transferred to the General Account. A
policy loan removes the proceeds from the investment experience of Separate
Account C which will have a permanent effect on the Accumulation Value, the
Cash Value and the Death Benefit even if the loan is repaid.
There are two types of loans available. See "CASH VALUE BENEFITS-Policy
Loans" for a description of the two types of loans and their applicable
interest rates.
IS THERE A SHORT-TERM CANCELLATION RIGHT?
The Policyowner has the limited right to return a Policy for cancellation and
full refund of all premiums paid. Chubb Life will cancel the Policy if it is
returned by mail or personal delivery to Chubb Life, or to the agent who sold
the Policy, within 20 days after the delivery of the Policy to the Policyowner.
Chubb Life will return to the Policyowner, within seven days, all payments
received on the Policy.
WHAT TRANSFERS ARE A POLICYOWNER ALLOWED?
A Policyowner may transfer Accumulation Value among the Divisions and between
the Divisions and the General Account. However, transfers out of the General
Account are subject to restrictions. Chubb Life currently permits up to 24
transfers per policy year, twelve of which will not incur the $50 Transfer
Charge. See "THE POLICIES-Transfers" for a more complete description of the
terms and conditions of the transfer privileges under the Policies.
ARE THE BENEFITS UNDER THE POLICIES SUBJECT TO FEDERAL INCOME TAX?
Under current interpretations of the tax laws, all Death Benefits paid under
the Policies will generally be fully excludable from the gross income of the
Beneficiary for Federal income tax purposes. Treasury regulations require that
investments underlying the Policies be adequately diversified. Chubb Life
believes it is presently in compliance with the regulations and intends to
remain in compliance with such regulations and other Federal tax law
requirements.
If a Policyowner elects to make certain transactions, including a withdrawal,
surrender or exchange of the Policy, the Policyowner may be taxed on a portion
of any amounts paid to the Policyowner (which may include any prior policy
loans cancelled in the transaction). Also, if premiums paid by a Policyowner
exceed certain limits and the Policy is deemed a modified endowment contract,
then any pre-death distributions, including loans, surrenders and partial
withdrawals, may be treated as income taxable to the Policyowner and may also
cause the Policyowner to incur a penalty tax of 10%. Policyowners are advised
to consult with their own tax advisers with regard to the tax consequences of
the Policy. See "FEDERAL TAX MATTERS".
14
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Life is a stock life insurance company originally chartered in
Tennessee and redomesticated to the State of New Hampshire in 1991. It has been
continuously engaged in the insurance business since 1903. It is licensed to do
life insurance business in forty-nine states of the United States, Puerto Rico,
the U.S. Virgin Islands, Guam and in the District of Columbia. Chubb Life is a
wholly-owned subsidiary of The Chubb Corporation, a New Jersey corporation. The
principal offices of The Chubb Corporation are located at 15 Mountain View
Road, Warren, New Jersey. Its telephone number is 908/903-2000. Chubb Life's
home office is located at One Granite Place, Concord, New Hampshire 03301,
telephone number 603/226-5000.
Chubb Life and its subsidiaries had total assets, at December 31, 1995, of
$4,275,365,000 and had over $66 billion of insurance in force, while total
assets of The Chubb Corporation and its subsidiaries (including Chubb Life), as
of the same date, were $22,996,525,000.
Chubb Life writes individual life insurance and annuities. It is subject to
New Hampshire law governing insurance, and is regulated and supervised by the
New Hampshire Insurance Commissioner. Chubb Life is currently rated AAA
(Superior) by Standard & Poors's Corporation and A+ (Superior) by A.M. Best and
Company. These ratings do not apply to Separate Account C, but reflect the
opinion of the rating company as to Chubb Life's ability to meet its contractual
obligations to its policyowners and its relative financial strength. Even though
assets in Separate Account C are held separately from Chubb Life's other assets,
ratings of Chubb Life may still be relevant to Policyowners since not all of
Chubb Life's contractual obligations relate to payments based on those
segregated assets.
CHUBB SEPARATE ACCOUNT C
Separate Account C is a separate account of Chubb Life established under New
Hampshire law on August 4, 1993. Separate Account C is registered as a unit
investment trust with the SEC under the Investment Company Act of 1940 (the
"1940 Act") and is subject to the 1940 Act's requirements. Such registration
does not involve supervision of the management or investment policies of
Separate Account C or Chubb Life by the SEC. Chubb Life is the depositor of
Separate Account C. Under New Hampshire law, the assets of Separate Account C
are held exclusively for the benefit of Policyowners and persons entitled to
payments under this Policy and other variable life insurance policies funded by
Separate Account C. The income, realized or unrealized capital gains, or capital
losses of Separate Account C are credited to or charged against the assets held
in Separate Account C in accordance with the terms of the Policy, without regard
to other income or capital gains or losses of any other account arising out of
any other business Chubb Life conducts. Separate Account C is administered and
accounted for as a part of the general business of Chubb Life, but the assets of
Separate Account C are not chargeable with liabilities arising out of any other
business which Chubb Life may conduct.
Chubb Life holds the assets of Separate Account C physically segregated and
separate and apart from the General Account. Chubb Life maintains records of all
purchases and redemptions of Portfolio shares by each of the Divisions.
DIVISIONS. The Policies presently offer six Divisions but may, in the future,
add or delete Divisions. Each Division will invest exclusively in shares
representing an interest in a Portfolio.
Investment income and other distributions to each Division arising from the
applicable underlying Portfolio increase the assets of the corresponding
Division. The income and both realized and unrealized gains or losses on the
assets of each Division are credited to or charged against that Division without
regard to income, gains or losses from any other Division.
15
<PAGE>
THE FUNDS
GENERAL. Separate Account C invests in shares of open-end, management
investment companies (the "Funds") or their separate investment series (the
"Portfolios") registered with the SEC under the 1940 Act. The Portfolios are
maintained separately from the assets of the other Portfolios and each Portfolio
has investment objectives and policies which are different from those of the
other Portfolios. Thus, each Portfolio operates as a separate investment fund,
and the income, gains or losses of one Portfolio has no effect on the investment
performance of any other Portfolio.
The Funds were organized primarily as investment vehicles for use in
connection with variable annuity contracts and variable life insurance policies
offered by one or more life insurance companies which may or may not be
affiliated with Chubb Life.
Although Chubb Life does not currently foresee any disadvantages to
Policyowners arising out of variable life insurance separate accounts and
variable annuity separate accounts investing in the Funds simultaneously, there
is a possibility that a material conflict may arise between the interest of
Separate Account C and one or more of the other separate accounts investing in
the Funds. The Directors or Trustees of the Funds intend to monitor events in
order to identify any material conflicts and to determine what action, if any,
should be taken in response thereto. Material conflicts could result from, for
example, (i) changes in state insurance laws, (ii) changes in Federal income tax
laws, (iii) changes in the investment management of any Portfolio or (iv)
differences in voting instructions between those given by variable life
insurance policyowners and those given by variable annuity owners.
There can be no assurance that any of the Portfolios will achieve its stated
objectives. The specialized nature of each Portfolio gives rise to significant
differences in the relative investment potential and market and financial risks
of each Portfolio. Policyowners should consider the unique features of each
Portfolio before investing in any Portfolio. For more detailed information
concerning each Portfolio, including a description of the investment risks,
reference is made to the prospectuses for the Funds that accompany this
Prospectus, or the Statements of Additional Information for the Funds, available
on request.
In some states, insurance regulations may restrict the availability of
particular Portfolios.
In the event of a material change in the investment policy of a Division or
the Portfolio in which it invests, the Policyowners will be notified of the
change. If the Policyowners have values in that Division, Chubb Life will
transfer it without charge on request by the Policyowner to another Division or
the General Account. Chubb Life must receive written request from the
Policyowner within sixty (60) days of the later of: (a) the effective date of
such change in the investment policy, or (b) the receipt of the notice of the
Policyowner's right to transfer.
Separate Account C will purchase shares of the Funds at net asset value in
connection with Net Premiums allocated to the Divisions in accordance with the
16
<PAGE>
Policyowner's directions and will redeem shares of the Funds to process
transfers, surrenders, partial withdrawals and generally to meet Policy
obligations or make adjustments in reserves. The Funds will sell and redeem
their shares at net asset value as of the date of receipt by Separate Account C
of Net Premiums or notification by a Policyowner.
CHUBB AMERICA FUND, INC. Chubb America Fund, Inc. is organized as a Maryland
corporation and is registered as an open-end diversified management company
under the 1940 Act. Chubb America Fund, Inc. currently has nine separate series
each of which has different objectives; however, only three of these series are
offered through the Policies. These series are the Money Market Portfolio, Bond
Portfolio and Growth and Income Portfolio.
The investment adviser to Chubb America Fund, Inc. is Chubb Investment
Advisory Corporation ("Chubb Investment Advisory") which is a subsidiary of
Chubb Life. Chubb Investment Advisory has in turn retained Chubb Asset Managers,
Inc. ("Chubb Asset"), an affiliate of Chubb Life, to provide sub-investment
advisory services for the Money Market Portfolio, Bond Portfolio and Growth and
Income Portfolio.
An investment advisory fee is charged monthly against each Portfolio by Chubb
Investment Advisory at the annual rate of .75 percent of the average daily net
asset value of the Growth and Income Portfolio and .50 percent of the average
daily net asset value of the Money Market Portfolio and Bond Portfolio. These
fees are reduced to .70 and .45 percent, respectively, of the average daily net
asset value exceeding $200,000,000 and are further reduced to .65 and .40
percent, respectively, of the average daily net asset value exceeding
$1,300,000,000. The compensation of Chubb Asset is at the annual rate of .35
percent of the average daily net asset value of the Money Market and Bond
Portfolios and at the annual rate of .50 percent of the average daily net asset
value of the Growth and Income Portfolio. These fees are reduced to .30 and .45,
respectively, of the average daily net asset value exceeding $200,000,000 and
are further reduced to .25 and .40 percent respectively, of the average daily
net asset value exceeding $1,300,000,000. Chubb Investment Advisory is wholly
responsible for paying such sub-investment management fees out of its investment
advisory fees described above.
CHUBB SERIES TRUST. Chubb Series Trust is organized as a Delaware business
trust and is registered as an open-end diversified management company under the
1940 Act. Chubb Series Trust currently has five series each of which has
different objectives; however, only three of these series are offered through
the Policies. These series are the Resolute Equity Portfolio, Resolute Small
Company Portfolio and Resolute International Equity Portfolio.
The investment manager to the Chubb Series Trust is Chubb Investment Advisory.
Chubb Investment Advisory has in turn retained Morgan Guaranty Trust Company of
New York ("Morgan") to provide sub-investment advisory services to each
Portfolio.
An investment management fee is charged monthly against each Portfolio by
Chubb Investment Advisory at the annual rate of .60 percent of the average daily
net asset value of the Resolute Equity Portfolio, and .80 percent of the average
daily net asset value of the Resolute Small Company Portfolio and the Resolute
International Equity Portfolio. The compensation of Morgan is set at
17
<PAGE>
the annual rate of .40 percent of the average daily net asset value of the
Resolute Equity Portfolio, and .60 percent of the average daily net asset value
of the Resolute Small Company Portfolio and the Resolute International Equity
Portfolio. Chubb Investment Advisory is solely responsible for paying such sub-
investment advisory fees out of its investment management fee described
above.
INVESTMENT OBJECTIVES. The investment objectives of each Portfolio offered
through the Policies are set forth below.
CHUBB AMERICA FUND, INC.
MONEY MARKET PORTFOLIO: to achieve the highest possible current income,
consistent with preservation of capital and maintenance of liquidity, by
investing primarily in short-term money market instruments other than commercial
paper. AN INVESTMENT IN THE MONEY MARKET PORTFOLIO IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT.
BOND PORTFOLIO: to provide a stable level of income, consistent with limiting
risk to principal, by investing primarily in high quality corporate debt
securities and U.S. Government debt obligations.
GROWTH AND INCOME PORTFOLIO: to seek long-term growth of capital by investing
primarily in a wide range of equity issues that may offer capital appreciation
and, secondarily, to seek a reasonable level of current income.
CHUBB SERIES TRUST
RESOLUTE EQUITY PORTFOLIO: to provide a high total return from a portfolio
comprised of selected equity securities.
RESOLUTE SMALL COMPANY PORTFOLIO: to provide a high total return from a
portfolio of equity securities of small companies.
RESOLUTE INTERNATIONAL EQUITY PORTFOLIO: to provide a high total return from a
portfolio of equity securities of foreign corporations.
THE POLICIES
GENERAL. Each form of the Policy is designed to provide the Policyowner with
lifetime insurance protection and flexibility in connection with the amount and
frequency of premium payments and the level of life insurance proceeds payable
under the Policy. Chubb Advisor I is an individual flexible premium variable
life insurance policy which provides life insurance coverage on one Insured,
with the Death Benefit payable upon the death of such Insured. Chubb Advisor II
is a flexible premium survivorship variable life insurance policy which provides
life insurance coverage on two Insureds, with a Death Benefit payable only when
the last surviving Insured dies. The Policyowner is not required to pay
scheduled premiums to keep a Policy in force but may, subject to certain
limitations, vary the frequency and amount of premium payments. Moreover,
subject to certain limitations, a Policy allows a Policyowner to adjust the
level of life insurance payable under the Policy without having to purchase a
new Policy by increasing or decreasing the Specified Amount. Thus, as insurance
18
<PAGE>
needs or financial conditions change, the Policyowner has the flexibility to
adjust coverage and vary the premium payments. Death Benefits are payable under
two options as described in "POLICY BENEFITS AND RIGHTS-Death Benefits".
To purchase a Policy, a completed application must be submitted to Chubb Life
through the agent selling the Policy. Applicants for insurance must furnish
satisfactory evidence of insurability. An Insured under Chubb Advisor I must
generally be between the ages of 0 and 80 and the Insureds under Chubb Advisor
II must generally be between 40 and 85 with only one Insured over the age of 80.
The Joint Equal Age of the Insureds under Chubb Advisor II cannot be over age
80. The smoking status of each Insured is reflected in the cost of insurance
rates; provided, however, that under Chubb Advisor I distinctions between
smokers and nonsmokers are only made for Insureds age 15 and over. Policies
issued in certain States will not directly reflect the sex of the Insured in
either the premium rates or the charges or values under the Policy. Accordingly,
illustrations set forth in this Prospectus may differ for such Policies.
The minimum Specified Amount at issue is $250,000. Chubb Life reserves the
right to revise its rules from time to time to specify different minimum
Specified Amounts at issue. If the Specified Amount applied for plus all other
insurance in force which is underwritten by Chubb Life or its affiliates exceeds
an amount which varies between $300,000 and $2,000,000 based on various factors,
Chubb Life will reinsure all or a portion of the Policy. Acceptance of an
application or revocation of a Policy during the contestable period is subject
to Chubb Life's insurance underwriting rules and Chubb Life may, in its sole
discretion, reject any application or related premium for any reason or contest
a Policy.
PAYMENT OF PREMIUMS. Premiums must be paid to Chubb Life at its home office or
through an authorized agent of Chubb Life for forwarding to Chubb Life's home
office. The initial premium may be wired to Chubb Life's bank upon notification
that the application has been approved by Chubb Life. Subsequent premium
payments may also be wired to Chubb Life's bank. The financial institution
transmitting the wired funds may impose a charge for this service. In addition,
Chubb Life has administrative procedures whereby premium payments in response to
billing notices are sent directly to Chubb Life's bank. Unlike traditional
insurance contracts, there is no fixed schedule of premium payments on a Policy
either as to the amount or the timing of the payment. A Policyowner may
determine within specified limits his or her own premium payment schedule. These
limits will be set forth by Chubb Life and will include a minimum initial
premium payment sufficient to keep the Policy in force for three months and may
also include limits on the total amount and frequency of payments in each Policy
year. No payment may be less than $250. In order to help the Policyowner obtain
the insurance benefits desired, a Planned Periodic Premium and Premium Frequency
will be stated in each Policy. This premium will usually be based upon the
Policyowner's insurance needs and financial abilities, the current financial
climate, the Specified Amount of the Policy, and the Insured's age, sex and risk
class, as discussed with the agent. The Policyowner is not required to pay such
premiums and failure to make any premium payment will not necessarily result in
lapse of the Policy, provided the Policy's Cash Value, less Policy Debt, if any,
is sufficient to pay monthly deductions. Conversely, adherence to the schedule
of Planned Periodic Premiums will not assure that the Policy will remain in
force. See "THE POLICIES -Policy Lapse".
19
<PAGE>
the next succeeding day which is a Valuation Date. The Date of Receipt of a
premium payment sent directly to Chubb Life's bank pursuant to a billing notice
will be the date the payment is received at the bank and the value of any
Division to which the payment is allocated will be determined as of such date
provided such date is a Valuation Date; otherwise, such determination will be
made on the next succeeding day which is a Valuation Date.
TRANSFERS. Accumulation Value may be transferred among the Divisions and
between the Divisions and the General Account. In addition to individual
transfer requests, Policyowners may elect either a Dollar Cost Averaging
feature or an Automatic Portfolio Re-Balancing feature which provides for
systematic transfers as described below. Transfer requests may be made in
writing or by telephone, assuming the proper telephone authorization form
is on file with Chubb Life. The total amount transferred each time must be at
least $250 unless a lesser amount constitutes the entire Accumulation Value
in a Division or in the General Account. Accumulation Value transferred from
one Division or from the General Account into more than one Division, and/or
into the General Account, counts as one transfer. Similarly, transferring
Accumulation Value from more than one Division, and/or the General Account,
into one other Division or the General Account, counts as one transfer.
Chubb Life currently permits 12 transfers per policy year without imposing a
Transfer Charge. For transfers in excess of 12 in any policy year, a Transfer
Charge of $50 to cover administrative costs will be imposed each time amounts
are transferred and, unless otherwise specified by the Policyowner, will be
deducted on a pro-rata basis from the Division or Divisions or the General
Account into which the amount is transferred. However, no Transfer Charge will
be imposed on the transfer of the initial Net Premium payments, plus interest
earned, from the General Account to the Divisions on the Allocation Date or on
loan repayments. No Transfer Charge will be imposed for transfers pursuant to
the Dollar Cost Averaging or Automatic Portfolio Re-Balancing features.
Currently, a Policyowner may make up to 24 transfers per policy year. Chubb Life
reserves the right to revoke or modify transfer privileges and charges.
At any time the Policyowner may transfer 100% of the Policy's Accumulation
Value to the General Account and elect to have all future premium payments
allocated to the General Account. While 100% of the Policy's Accumulation Value
and all future premium payments are allocated to the General Account, the
minimum period the Policy will be in force will be fixed and guaranteed. The
minimum period will depend on the amount of Accumulation Value, the Specified
Amount, the sex, the Attained Age, and rating class of the Insured at the time
of transfer. The minimum period will decrease if the Policyowner subsequently
elects to increase the Specified Amount, elects to surrender the Policy, or
elects to make a withdrawal. The minimum period will increase if the Policyowner
elects to decrease the Specified Amount, additional premium payments are
received, or Chubb Life credits a higher interest rate or charges a lower cost
of insurance rate than those guaranteed for the General Account.
Except for transfers in connection with Dollar Cost Averaging, Automatic
Portfolio Re-Balancing and loan repayments, transfers out of the General Account
to the Divisions are permitted only once every 180 days and are limited in
amount to the lesser of (a) 25% of the Accumulation Value in the General Account
not being held as loan collateral or (b) $100,000. In addition, any other
transfer rules, including minimum transfer amounts, also apply. Chubb
20
<PAGE>
Life reserves the right to modify these restrictions.
No Transfer Charge will be imposed for a transfer of all Accumulation Value in
Separate Account C to the General Account. However, any transfer from the
General Account to the Division(s) will be subject to the Transfer Charge,
unless it is one of the first 12 transfers in a policy year and except for the
transfer of the initial Net Premium payments, plus interest earned, from the
General Account, loan repayments, and transfers pursuant to the Dollar Cost
Averaging or Automatic Portfolio Re-Balancing features.
Chubb Life reserves the right to refuse to accept or to place certain
restrictions on transfers made by third-party agents acting on behalf of
multiple Policyowners or made pursuant to market timing services when Chubb Life
determines, in its sole discretion, that such transfers will be detrimental to
the Portfolios and the Policyowners as a whole. Such transfers may cause
increased trading and transaction costs, disruption of planned investment
strategies, forced and unplanned portfolio turnover, and lost opportunity costs,
and may subject the Portfolio to large asset swings that diminishes the
Portfolio's ability to provide maximum investment return to all
Policyowners.
A feature called Dollar Cost Averaging is available to Policyowners under
which a Policyowner deposits an amount, subject to a minimum of $3,000, in the
Division investing in the Money Market Portfolio and elects to have a specified
dollar amount (the "Periodic Transfer Amount") automatically transferred to one
or more of the Divisions on a monthly, quarterly, or semi-annual basis. This
feature allows Policyowners to systematically invest in the Divisions at various
prices which may be higher or lower than the price a Policyowner would pay when
investing the entire amount at one time and at one price. Each Periodic Transfer
Amount is subject to a minimum amount of $250. A minimum of 1% of the Periodic
Transfer Amount must be transferred to any specified Division. These amounts are
subject to change at Chubb Life's discretion. If a transfer would reduce
Accumulation Value in the Division investing in the Money Market Portfolio to
less than the Periodic Transfer Amount, Chubb Life reserves the right to include
such remaining Accumulation Value in the amount transferred. At the time a
policyowner elects the Dollar Cost Averaging feature, an election is made
between Fixed Amount Dollar Cost Averaging or Continuous Mode Dollar Cost
Averaging. Under Fixed Amount Dollar Cost Averaging, the feature will continue
until the Designated Amount has been transferred or the policyowner gives
notification of cancellation of the feature prior to transfer of the entire
Designated Amount. Once the Designated Amount has been transferred, the
policyowner must complete a new Dollar Cost Averaging election form. Under
Continuous Mode Dollar Cost Averaging, any amounts deposited into the Repository
Account, and not just the Designated Amount, will be transferred. Dollar Cost
Averaging is currently available at no charge to Policyowners. Although Chubb
Life reserves the right to assess a charge, no greater than cost and with 30
days advance notice to Policyowners, it has no present intention to do so.
An Automatic Portfolio Re-Balancing feature is also available to Policyowners.
This feature provides a method for re-establishing fixed proportions between
various types of investments on a systematic basis. Under this feature, the
allocation between Divisions and the General Account will be automatically re-
adjusted to the desired allocation, subject to a minimum of 1% per Division or
General Account, on a quarterly, semi-annual or annual basis.
21
<PAGE>
A Policyowner may choose only one of the two features. Transfers and
adjustments pursuant to each feature will occur on a Policy's Monthly
Anniversary Date in the month in which the transaction is to take place or the
next succeeding business day if the Monthly Anniversary Date falls on a holiday
or a weekend. The applicable authorization form must be on file at Chubb Life
before either feature may begin. Neither feature guarantees profits nor protects
against losses. Transfers under these features do not count toward the 12 free
transfers or the 24 transfers currently allowed per year. Chubb Life reserves
the right to modify the terms and conditions of these features upon 30 days
advance notice to Policyowners.
TELEPHONE TRANSFERS, LOANS AND REALLOCATIONS. Policyowners may request by
telephone transfers of Accumulation Value or reallocation of premiums (including
allocation changes pursuant to existing Dollar Cost Averaging and Automatic
Portfolio Re-Balancing programs), provided that the appropriate authorization
form is on file with Chubb Life. Chubb Life may also, in its discretion, permit
loans to be made by telephone, provided that the proper authorization form is on
file with Chubb Life. During periods of heavy telephone transfers, implementing
a telephone transfer may be difficult. If a Policyowner is unable to reach Chubb
Life via telephone, the Policyowner should send a written request to Chubb Life
via an express mailing service or via the Chubb Life telecopier machine at (603)
226-5155. (Any transfer requests received via telecopier are considered
telephone transfers and are bound by the conditions outlined in the signed
authorization form.) Chubb Life reserves the right to discontinue telephone
transfers at any time without notice to the Policyowners. Procedures have been
established that are reasonably designed to reduce the risk of unauthorized
telephone transfers, loan requests or allocation changes. These procedures
include requiring personal identification information, tape recording calls and
providing written confirmations to Policyowners. However, there still exists
some risk. Neither Chubb Life, Chubb Securities Corporation, nor any of their
affiliates are liable for any loss resulting from unauthorized telephone
transfers, loan requests or premium allocation changes if its procedures have
been followed, and a Policyowner bears the risk of loss in such situation.
POLICY LAPSE. Failure to make a premium payment on a Policy will not
necessarily cause the Policy to lapse. The duration of a Policy depends upon its
Cash Value. The Policy will remain in force so long as the Cash Value, less any
outstanding Policy Debt, is sufficient to cover cost of insurance and any rider
charges. In the event the Cash Value, less any outstanding Policy Debt, is
insufficient to pay these monthly cost of insurance and rider charges ("monthly
deduction") the Policyowner will be given a sixty-one day period ("grace
period") within which to make a premium payment to avoid lapse. The premium
required to avoid lapse must be sufficient in amount, after the deduction of the
State Premium Tax Charge, the Federal DAC Tax Charge and the Sales Charge, to
cover the monthly deduction for at least three policy months. This required
premium will be set forth in a written notice which Chubb Life will send to the
Policyowner thirty-one days prior to the end of the grace period. The Policy
will continue in force through the grace period, but if no payment is
forthcoming, the Policy will terminate without value at the end of the grace
period. If the Insured under Chubb Advisor I or the last surviving Insured under
Chubb Advisor II dies during the grace period, the Death Benefit payable under
the Policy will be reduced by the amount of the monthly deduction
22
<PAGE>
due and unpaid and the amount of any outstanding Policy Debt. In addition, if
the Cash Value of the Policy at any time should decrease so the aggregate
amount of outstanding Policy Debt secured by the Policy exceeds the Cash Value
shown in the Policy and an additional payment is not made within sixty-one days
the Policy will lapse.
REINSTATEMENT. If the Policy lapses, the Policyowner may reinstate the Policy.
The terms of the original contract will apply upon reinstatement. The
Accumulation Value, before payment of the required reinstatement premium, will
equal the Accumulation Value on the date of termination. The policy year on
reinstatement will be measured from the Policy Date. An application for
reinstatement may be made any time within five years of lapse and before the
Maturity Date, but satisfactory proof of insurability of the Insured under Chubb
Advisor I or the Insureds or surviving Insured under Chubb Advisor II and
payment of a reinstatement premium is required. The reinstatement premium, after
deduction of the State Premium Tax Charge, the Federal DAC Tax Charge and the
Sales Charge, must be sufficient to cover the monthly deduction for three policy
months following the effective date of reinstatement. If a loan was outstanding
at the time of lapse, Chubb Life will require, at the election of the
Policyowner, repayment or reinstatement of the loan before permitting
reinstatement of the Policy. The effective date will be the date of approval of
the reinstatement application, which will be as of a Monthly Anniversary Date.
POLICY "FREE LOOK". The Policyowner has a limited right to return a Policy for
cancellation and a full refund of all premiums paid. Chubb Life will cancel the
Policy if it is returned by mail or personal delivery to Chubb Life, or to the
agent who sold the Policy, within 20 days after the delivery of the Policy to
the Policyowner. Chubb Life will return to the Policyowner within seven days all
payments received on the Policy. Prior to the Allocation Date the initial Net
Premium will be held in Chubb Life's General Account; Chubb Life will retain any
interest earned if the "free look" right is exercised.
CHARGES AND DEDUCTIONS
PREMIUM CHARGES. Upon receipt of each premium payment and before allocation of
payment among the Divisions and the General Account, Chubb Life will deduct a
State Premium Tax Charge of 2.5% (which represents an average of actual premium
taxes imposed), unless otherwise required by state law. Currently, the taxes
imposed by States on premiums range up to 4% of premiums paid, while some States
do not impose a premium tax. The 2.5% state premium tax charge may therefore be
higher or lower than the actual premium tax imposed by states in which a
particular Policyholder resides. Chubb Life will not increase this charge under
outstanding Policies, but reserves the right to change this charge for Policies
not yet issued in order to correspond with changes in the state premium tax
levels. Chubb Life does not expect to derive a profit from this charge.
Chubb Life will also deduct from each premium a charge currently equal to
1.25% to cover the estimated cost to Chubb Life of the Federal income tax
treatment of the Policies' deferred acquisition costs ("Federal DAC Tax
Charge"). Chubb Life has determined that this charge is reasonable in relation
to Chubb Life's increased Federal income tax burden under the Code resulting
from the receipt of premiums. Chubb Life will not increase this charge under
outstanding Policies, but reserves the right, subject to any required
regulatory approval, to change this charge for Policies not yet issued in order
23
<PAGE>
to correspond with changes in the DAC tax.
Chubb Life will also deduct a Sales Charge of 3% from each premium payment to
compensate Chubb Life for the cost of selling the Policy. The cost of selling
the Policy includes, among other things, agents' commissions, commission
overrides, advertising and the printing of prospectuses and sales literature.
Under normal circumstances, the amount of this charge, plus the Surrender Charge
discussed below, are expected to compensate Chubb Life for total sales expenses
for that year. To the extent sales expenses in any one policy year are not
recovered by this Sales Charge and the Surrender Charge imposed upon surrenders
or withdrawals during the first five policy years, the sales expenses may be
recovered from other sources, including surplus, which may include profits, if
any, from the Mortality Risk Charge and the Expense Risk Charge.
MONTHLY DEDUCTION. On each Monthly Anniversary Date and on the Policy Date,
Chubb Life will deduct an Expense Risk Charge and an Administration Charge. The
Administration Charge is deducted during the first twenty policy years only.
These charges are calculated by taking the Accumulation Value as of each Monthly
Anniversary Date and on the Policy Date and multiplying such Accumulation Value
by a monthly factor equal on an annual basis to the following percentages:
<TABLE>
<CAPTION>
Expense Risk Administration
Accumulation Value Charge Charge
- ------------------ ------ ------
<S> <C> <C>
Less Than $250,000............................... 0.20% 0.10%
$250,000 But Less Than $1,000,000................ 0.10% 0.10%
$1,000,000 or Greater............................ 0.00% 0.10%
</TABLE>
The Expense Risk Charge is assessed to cover Chubb Life's expense risk under
the Policies. Specifically, Chubb Life bears the risk that the actual cost
incurred by it to administer the Policy will not be covered by charges assessed
under the Policy.
The Administration Charge is assessed to help defray administrative and
related expenses actually incurred in the administration of the Policies and
Separate Account C, and is not expected to be a source of profit. However, there
is no direct relationship between the amount of the Administration Charge
imposed on a given Policy and the amount of expenses directly attributable to
that Policy. The administrative functions and expenses assumed by Chubb Life in
connection with Separate Account C and the Policies include, but are not limited
to, clerical, accounting, actuarial and legal services, rent, postage,
telephone, office equipment and supplies, expenses of preparing and printing
registration statements, expense of preparing and typesetting prospectuses and
the cost of pricing prospectuses and sales literature not allocable to sales
expense, filing and other fees.
On each Monthly Anniversary Date and on the Policy Date, Chubb Life will also
deduct from the Accumulation Value of a Policy an amount to cover certain
charges and expenses incurred in connection with the Policy. In addition to
expense risk and administration charges, the amount of the cost of insurance
portion of the monthly deduction is equal to the cost of insurance for the
Policy as described below, and the cost of any optional benefits added by rider.
This amount will be allocated to one Division according to the Policyowner's
instructions, or, if no Division has been
24
<PAGE>
specified, Chubb Life will deduct the amount pro rata from each of the Divisions
and the General Account, excluding the amount held in the General Account as
loan collateral, in which the Policyowner is invested. If the Division specified
by the Policyowner does not have sufficient funds to cover the deduction amount,
Chubb Life will deduct the charge for that month as if no specification were
made.
The cost of insurance is determined on a monthly basis, and is determined
separately for the initial Specified Amount and each subsequent increase in the
Specified Amount. The monthly current cost of insurance rate is based on the
sex, Issue Age, including the joint equal age, policy year, smoking status and
rating class of the Insured(s), Specified Amount, Death Benefit option and
applicable corridor percentage.
The cost of insurance is calculated as (i) multiplied by the result of (ii)
minus (iii) where:
(i) is the cost of insurance rate as described in the Cost of Insurance Rates
provision contained in the Policy.
(ii) is the Death Benefit at the beginning of the policy month divided by
1.00327374, to arrive at the proper values for the beginning of the month
assuming the guaranteed interest rate of 4% that is applicable to the General
Account portion of the Policy; and
(iii) is the Accumulation Value at the beginning of the policy month.
If the corridor percentage is applicable, the Death Benefit used in the
foregoing calculation will reflect the corridor percentage. The Cost of
Insurance Charge is not affected by the death of the first Insured to die under
Chubb Advisor II.
The monthly cost of insurance rate will be determined by Chubb Life based
upon expectations as to future mortality experience, but can never exceed the
rates shown in the table of Monthly Guaranteed Cost of Insurance Rates set
forth in the Policy. Such guaranteed maximum rates are based on the
Commissioner's 1980 Standard Ordinary Mortality Table.
A guaranteed monthly accumulation value deduction adjustment will be
calculated on the first policy anniversary for the second policy year, and on
each policy anniversary thereafter for each respective policy year that follows.
The monthly deduction adjustment will not apply to the first policy year. The
adjustment will be an amount that is added to the accumulation value for each
month of the policy year during which the adjustment is in effect. The
adjustment results from a reduction in Chubb's margin for profit and expenses.
The adjustment will be allocated among the general account and divisions of
Separate Account C using the same percentages used to allocate net premiums.
The adjustment is calculated as (i) multiplied by the result of (ii) plus (iii)
minus (iv), but not less than zero, where:
(i) is .000333;
(ii) is the amount held in Separate Account C at the beginning of the policy
year;
(iii) is the Type B loan balance at the beginning of the policy year; and
(iv) is the Guideline Single Premium at issue under Section 7702 of the Code,
increased on a pro-rata basis for any increase in Specified Amount. See "CASH
VALUE BENEFITS - Policy Loans" for a description of Type B loans.
25
<PAGE>
The monthly deduction adjustment results from a reduction in Chubb Life's
margin for profit and expenses. The adjustment is used to reduce these margins
in situations where Chubb Life's risk is relatively less. The mortality risk is
lessened when the Accumulation Value grows in size relative to the Death
Benefit. The net amount at risk declines while the base on which the Mortality
Risk Charge and the Expense Risk Charge are levied increases. This is the reason
why the adjustment is applied to amounts in the Accumulation Value in excess of
the threshold of item (iv) above.
MORTALITY RISK CHARGE. Chubb Life will also assess a charge on a daily basis
against each Division at an annual rate of .50% of the value of the Divisions to
compensate Chubb Life for its assumption of certain mortality risks in
connection with the Policy. (This charge is not imposed on amounts held in the
General Account.) Specifically, Chubb Life bears the risk that the total amount
of Death Benefit payable under the Policy will be greater than anticipated.
SURRENDER CHARGE. Upon surrender during the first five policy years, Chubb
Life will assess a contingent deferred sales charge.
The Surrender Charges are as follows:
- -------------------------------------
<TABLE>
<CAPTION>
Surrender Charge as
-------------------
Policy Year Percentage of First Year Premiums
- ----------- ---------------------------------
<S> <C>
0 - 1 .......................................................5.0%
1+ - 2 .......................................................4.0%
2+ - 3 .......................................................3.0%
3+ - 4 .......................................................2.0%
4+ - 5 .......................................................1.0%
5+ .......................................................0.0%
</TABLE>
There is no Surrender Charge assessed for surrender after the fifth policy year.
A pro rata portion of any Surrender Charge will be assessed upon a withdrawal.
The Policy's Accumulation Value will be reduced by the amount of any withdrawal
plus any applicable pro-rata Surrender Charge.
The Surrender Charge helps to compensate Chubb Life for the cost of selling
the Policy, including the cost of advertising and the printing of the Prospectus
and sales literature.
ADMINISTRATIVE FEES. An administrative fee equal to $50 is imposed for each
transfer among the Divisions or the General Account, after the first 12
transfers in a policy year and except for the transfer of the initial Net
Premium payments, plus interest, from the General Account on the Allocation
Date, loan repayments and transfers pursuant to the Dollar Cost Averaging and
Automatic Portfolio Re-Balancing features. For withdrawals, an administrative
fee equal to $50 will be charged. All administrative fees are no greater than
the anticipated expenses of providing such services.
OTHER CHARGES. Chubb Life also reserves the right to charge the assets of each
Division to provide for any income taxes or other taxes payable by Chubb Life on
the assets attributable to that Division. An investment advisory fee
26
<PAGE>
for services provided by the Funds' investment managers and sub-investment
managers and certain other operating expenses are deducted from the assets of
each Portfolio of the Funds. See "THE FUNDS". Chubb Life also reserves the
right to charge an administrative fee, not to exceed $25, to cover the cost of
preparing any illustrations of Death Benefits, Accumulation Values and Cash
Values which may be requested by the Policyowner after the Policy Date.
POLICY BENEFITS AND RIGHTS
DEATH BENEFITS. So long as it remains in force, Chubb Advisor I provides for
the payment of life insurance proceeds upon the death of the Insured and Chubb
Advisor II provides for a Death Benefit payable upon the death of the last
surviving Insured. Proceeds will be paid to a named Beneficiary or contingent
Beneficiary. One or more Beneficiaries or contingent Beneficiaries may be named.
Life insurance proceeds may be paid in a lump sum or under an optional payment
plan. (See "SETTLEMENT OPTIONS" below.) Proceeds of the Policy will be reduced
by any outstanding Policy Debt and any due and unpaid charges and increased by
any benefits added by rider. Proceeds that are payable in a lump sum will be
increased to include interest as required by applicable state law. Proceeds will
ordinarily be paid within seven days after Chubb Life receives due Proof of
Death. Under Chubb Advisor II, due Proof of Death must also be submitted at the
time of the first death.
A Policyowner will make in the initial application two elections to determine
the Death Benefit under the Policy. First, the Policyowner will choose one of
two Death Benefit options offered under the Policy. Second, the Policyowner will
choose the Death Benefit qualification test, which is the method for qualifying
the Policy as a life insurance contract for purposes of Federal tax law. If no
Death Benefit qualification test or option is designated, the guideline premium
test under Option I, as described below, will be assumed by Chubb Life to have
been selected.
The amount of life insurance proceeds payable under a Policy will depend upon
which of the two Death Benefit options offered under the Policy, as
follows:
OPTION I: For Policies issued pursuant to the cash value accumulation test,
the Death Benefit equals the greater of the current Specified Amount or the
Accumulation Value of the Policy at the date of death multiplied by the corridor
percentage, as described below. For Policies issued pursuant to the guideline
premium test, the Death Benefit equals the greater of the current Specified
Amount or the Accumulation Value of the Policy at the date of death multiplied
by the corridor percentage, as described below.
OPTION II: The Death Benefit equals the current Specified Amount plus the
Accumulation Value of the Policy on the date of death. For Policies issued
pursuant to the cash value accumulation test, the Death Benefit will not be less
than the Accumulation Value on the date of death multiplied by the corridor
percentage. For Policies issued pursuant to the guideline premium test, the
Death Benefit will not be less than the Accumulation Value multiplied by the
corridor percentage.
The Policyowner will also choose from two Death Benefit qualification tests
are available under a Policy. ONCE ELECTED, THE DEATH BENEFIT QUALIFICATION TEST
CANNOT BE CHANGED FOR THE DURATION OF THE POLICY. The available Death Benefit
qualification tests are the cash value accumulation test and the guideline
premium test.
27
<PAGE>
Generally, the cash value accumulation test requires that under the terms of a
Policy, the Death Benefit must be sufficient so that the cash surrender value,
as defined in Section 7702 of the Code, does not at any time exceed the net
single premium required to fund the future benefits under the Policy. If the
Accumulation Value under a Policy is at any time greater than the net single
premium at the Insured's age and sex for the proposed Death Benefit, the Death
Benefit will be increased automatically by multiplying the Accumulation Value by
a "corridor percentage" computed in compliance with the Code. A list of
representative corridor percentages is set forth in Appendix A to this
Prospectus. The corridor percentages under the Policy vary according to the Age,
sex, and underwriting classification of the Insured(s), and the resulting Death
Benefit determined by using the corridor percentage will be at least equal to
the amount required for the Policy to be deemed life insurance under Section
7702. The corridor percentage is calculated using a four percent interest rate
or, if higher, the contractually guaranteed interest rate and using mortality
charges specified in the prevailing Commissioner's standard table as of the time
the Policy is issued.
The guideline premium test limits the amount of premiums payable under a
Policy to a certain amount for an Insured of a particular age and sex. The test
also applies a prescribed "corridor percentage" to determine a minimum ratio of
Death Benefit to Accumulation Value. A complete list of corridor percentages is
set forth in Appendix B to this Prospectus.
There are two main differences between the guideline premium test and the cash
value accumulation test. First, the guideline premium test limits the amount of
premium that may be paid into a Policy. No such limits apply under the cash
value accumulation test. (However, any premium that would increase the net
amount at risk is subject to evidence of insurability satisfactory to Chubb
Life.) Second, the factors that determine the minimum Death Benefit relative to
the Policy's Accumulation Value are different. Required increases in the minimum
Death Benefit due to growth in Accumulation Value will generally be greater
under the cash value accumulation test than under the guideline premium test.
Policyowners who desire to pay premiums in excess of the guideline premium test
limitations should elect the cash value accumulation test. Policyowners who do
not desire to pay premiums in excess of the guideline premium test limitations
should consider the guideline premium test. APPLICANTS FOR A POLICY SHOULD
CONSULT A QUALIFIED TAX ADVISER IN CHOOSING A DEATH BENEFIT ELECTION.
The following examples demonstrate the determination of Death Benefits under
Options I and II for the cash value accumulation test and the guideline premium
test. The examples show a Chubb Advisor I policy and a Chubb Advisor II policy,
with the same Specified Amounts and Accumulation Values. The Chubb Advisor I
example assumes a Policy was issued to a male, non-smoker Insured, Age 45 at the
time of calculation of the Death Benefit and that there is no outstanding Policy
Debt. The Chubb Advisor II example considers a Policy issued to one male and one
female, both non-smokers, and both Age 45. The Policy is in its tenth policy
year without any outstanding Policy Debt and with both insureds having attained
age 55.
<TABLE>
<CAPTION>
Chubb Advisor I
Cash Value Accumulation Guideline Premium
----------------------- -----------------
Test Test
---- -----
<S> <C> <C>
Specified Amount $1,000,000 $1,000,000
Accumulation Value $ 500,000 $ 500,000
Corridor Percentage 314% 215%
Death Benefit Under Option I $1,570,000 $1,075,000
Death Benefit Under Option II $1,570,000 $1,500,000
</TABLE>
28
<PAGE>
Chubb Advisor II
----------------
<TABLE>
<CAPTION>
Cash Value Accumulation Guideline Premium
------------------------------------------------------------------
Test Test
---------------------------------------------------
<S> <C> <C>
Specified Amount $1,000,000 $1,000,000
Accumulation Value $ 500,000 $ 500,000
Corridor Percentage 306% 150%
Death Benefit Under Option I $1,530,000 $1,000,000
Death Benefit Under Option II $1,530,000 $1,500,000
</TABLE>
After issue of the Policy, the Policyowner may change the Death Benefit
selection from Option I to Option II or vice versa, by sending Chubb Life a
written request for change. THE DEATH BENEFIT QUALIFICATION TEST, HOWEVER, MUST
BE SELECTED AT THE TIME OF INITIAL APPLICATION, AND ONCE SELECTED, MAY NOT BE
SUBSEQUENTLY CHANGED. The effective date of the change will be the first Monthly
Anniversary Date that coincides with or next follows the Date of Receipt of such
request. If the Death Benefit option is changed from Option II to Option I, the
Specified Amount will be increased by the Policy's Accumulation Value on the
effective date of the change. Conversely, if the Death Benefit option is changed
from Option I to Option II, the Specified Amount will be decreased by the
Policy's Accumulation Value on the effective date of the change. Evidence of
insurability satisfactory to Chubb Life will be required on a change from Option
I to Option II. A change in the Death Benefit option may not be made if it would
result in a Specified Amount which is less than a minimum Specified Amount of
$125,000. A change in Death Benefit options will affect the cost of
insurance.
After a Policy has been in force for one year, the Policyowner may adjust the
existing insurance coverage by increasing or decreasing the Specified Amount.
The increase or decrease must be at least $125,000. To make a change, the
Policyowner must send a written request and the Policy to Chubb's home office.
Any change in the Specified Amount will affect a Policyowner's cost of insurance
charge. An increase in the Specified Amount will affect the determination of the
amount available for a Type A loan, as explained below, and will affect the
monthly deduction adjustment if any. Decreases in the Specified Amount may
affect the monthly deduction adjustment but will have no effect on the
determination of the amount available for a Type A loan. Any decrease in the
Specified Amount will become effective on the Monthly Anniversary Date after the
Date of Receipt of the request. Any decrease in Specified Amount will first
apply to coverage provided by the most recent Specified Amount increase, then to
the next most recent increases successively and finally to the coverage under
the original application. By applying decreases in this manner, savings,
generally, may be realized by a Policyowner since additional costs and
limitations associated with increases in Specified Amounts would be eliminated
first. To apply for an increase in the Specified Amount, a supplemental
application must be completed and evidence satisfactory to Chubb Life that each
Insured is insurable must be submitted. Any approved increase in the Specified
Amount will become effective on the date shown in the Supplemental Policy
Specifications Page. Such increase will not become effective, however, if the
Policy's Cash Value is insufficient to cover the deduction for the cost of the
increased insurance for the policy month following the increase. Such an
increase may require a payment or recommended increased future Planned Periodic
Premiums.
29
<PAGE>
Under Chubb Advisor II, if the first death is by suicide and the surviving
Insured is classified by Chubb Life as insurable on the Policy Date, Chubb Life
will issue, upon request of the Policyowner and without evidence of
insurability, an individual policy providing coverage on the life of the
surviving Insured equal to the coverage on the Insureds for which premiums or
cost of insurance was refunded.
BENEFICIARIES. The original Beneficiaries and contingent Beneficiaries are
designated by the Policyowner on the application. If changed, the primary
Beneficiary or contingent Beneficiary is as shown in the latest change filed
with Chubb Life. One or more primary or contingent Beneficiaries may be named in
the application. In such case, the proceeds of the Policy will be paid in equal
shares to the survivors in the appropriate beneficiary class unless requested
otherwise by the Policyowner.
POSTPONEMENT OF PAYMENTS. Payment of any amount upon surrender, withdrawal,
policy loan, or benefits payable at death or maturity may be postponed whenever:
(i) the New York Stock Exchange is closed other than customary week-end and
holiday closings, or trading on the New York Stock Exchange is restricted as
determined by the SEC; (ii) the SEC by order permits postponement for the
protection of Policyowners; or (iii) an emergency exists, as determined by the
SEC, as a result of which disposal of securities is not reasonably practical or
it is not reasonably practicable to determine the value of net assets in
Separate Account C.
ASSIGNMENT. Ownership of the Policy can be assigned or the Policy can be
assigned as collateral security. Chubb Life must be notified in writing if the
Policy has been assigned. Each assignment will be subject to any payments made
or action taken by Chubb Life prior to its notification of such assignment.
Chubb Life is not responsible for the validity of an assignment. A Policyowner's
rights and the rights of the Beneficiary may be affected by an assignment.
ILLUSTRATION OF BENEFITS AND VALUES. The Policyowner may request illustrations
of Death Benefits, Accumulation Values and Cash Values at any time after the
Policy Date. Illustrations will be based on the existing Accumulation Value and
Cash Value at the time of the request and both the maximum and the then current
costs of insurance rates. Although Chubb Life does not currently charge a fee
for such illustrations, it reserves the right to charge an administrative fee,
not to exceed $25, to cover the cost of preparing the illustrations.
NON-PARTICIPATING POLICY. The Policy does not share in any surplus
distributions of Chubb Life. No dividends are payable with respect to the
Policy.
30
<PAGE>
GUARANTEED DEATH BENEFIT. The Policyowner may add a Guaranteed Death Benefit
Rider to the Policy under which the Death Benefit is guaranteed to never be less
than the Specified Amount provided that a cumulative minimum premium requirement
is met. The premium requirement is based on Issue Age, sex, smoking status,
underwriting class, Specified Amount and Death Benefit Option. If the Specified
Amount is increased, an additional premium, based on Attained Age, will be
required for such increase. There is a monthly charge for this Death Benefit
Rider. See "Optional Insurance Benefits".
COMBINED REQUESTS. Policyowners may combine requests for changes in the
Specified Amount and the Death Benefit option and requests for withdrawals. The
requirements and limitations that apply to each change will apply to the
combined transactions, including any required evidence of insurability,
Specified Amount and premium limitations, effectiveness on the Monthly
Anniversary Date following the Date of Receipt of the request, and the
sufficiency of Cash Value to keep the Policy in force for the month following
the transaction.
The effect of a combined transaction on the cost of insurance, the amount of
the Death Benefit proceeds and the premium limitations will be the net result of
such effects for each such transaction considered separately. Policyowners
should consider the net result of a combined transaction in light of insurance
needs, financial circumstances and tax consequences.
MATURITY OF THE POLICY. As long as the Policy remains in force, Chubb Life
will pay the Policy's Cash Value, less outstanding Policy Debt, if any, on the
Maturity Date. Benefits at maturity may be paid in a lump sum or under an
optional payment plan. The Maturity Date is the date shown in the Policy. To
change the Maturity Date, a written request and the Policy must be sent to
Chubb Life. The Date of Receipt for any request must be before the Maturity
Date then in effect. The requested Maturity Date must be (i) on a policy
anniversary, (ii) at least one year from the Date of Receipt of the request,
(iii) after the tenth policy year and (iv) on or before the policy anniversary
nearest to the Insured's 100th birthday for Chubb Advisor I and the younger
Insured's 100th birthday for Chubb Advisor II.
OPTIONAL INSURANCE BENEFITS. Subject to certain requirements, one or more of
the following optional insurance benefits may be added to a Policy by rider.
More detailed information concerning such riders may be obtained from the agent
selling the Policy. Additional riders, developed after the effective date of
this Prospectus, may also be available as optional insurance benefits to the
Policy. The agent selling the Policy should be consulted regarding the
availability of any such additional riders. The cost of any optional insurance
benefits will be deducted as part of the monthly deduction. See "CHARGES AND
DEDUCTIONS."
(a) GUARANTEED DEATH BENEFIT RIDER. This rider guarantees that the Policy
will stay in force with a Death Benefit equal to the Specified Amount, even if
the Cash Value less Policy Debt is not sufficient to pay the monthly deduction,
provided that cumulative premiums paid, less loans and withdrawals, are greater
than or equal to the guaranteed death benefit premium multiplied by the number
of months the Policy has been in force. This cumulative premium requirement
must be met at all times for the rider to stay in force. A monthly charge of
31
<PAGE>
$.01 per $1,000 of Specified Amount will be deducted from the Policy's
Accumulation Value.
(b) AUTOMATIC INCREASE RIDER. This rider allows for scheduled annual increases
in Specified Amount of from 1% to 7%, subject to certain limitations set forth
in the rider. There is an annual charge per unit of Specified Amount which
varies by Issue Age on Chubb Advisor I and by Joint Equal Age at issue on Chubb
Advisor II.
(c) POLICY EXCHANGE OPTION RIDER. This rider is available on Chubb Advisor II
provided both Insureds are insurable. It allows Chubb Advisor II to be exchanged
for two individual Chubb Advisor I policies, without evidence of insurability,
each with a face amount equal to one half of the Death Benefit under Chubb
Advisor II at the time of exchange, upon the Insureds' divorce or the occurrence
of certain Federal tax law changes as specified in the rider. There is no charge
for this rider.
(d) EXTENSION OF MATURITY DATE RIDER. This rider allows the Policyowner to
extend the original Maturity Date of the Policy under the terms set forth in the
rider.
(e) EXCHANGE OF INSURED RIDER. This benefit provides that the Policy may be
exchanged for a reissued policy on the life of a substitute insured, subject to
the conditions stated in the rider. See "FEDERAL TAX MATTERS."
(f) TERMINAL ILLNESS ACCELERATED BENEFIT RIDER (AVAILABLE ONLY FOR CHUBB
ADVISOR I). This benefit advances up to 50% of a Policy's eligible death
benefit, subject to a $250,000 maximum per insured, if it is medically
determined that the insured is terminally ill and has a life expectancy of six
months or less, as defined in the rider. Upon the payment of the accelerated
benefit payment, the amount of the Death Benefit, the Specified Amount, the Cash
Value and the Accumulation Value are reduced by the same ratio as the requested
portion of the Death Benefit bears to the original Death Benefit. Such reduction
will be allocated among the General Account and the Divisions on a pro rata
basis. While this benefit is offered at no additional premium cost or surrender
charge, an actuarial discount as described in the rider, which reflects the
early payment of amounts held under the Policy, will be deducted from the
requested portion of the Death Benefit. In addition, Chubb Life imposes an
administrative expense charge not to exceed the lesser of the actual cost of
administering the exercise of the rider or $300. Chubb Life will deduct from the
requested portion of the Death Benefit a prorated portion of any outstanding
policy loans and any premiums which are unpaid within the grace period. Cost of
insurance charges are adjusted to reflect the reduction in the Death Benefit.
Future charges under the Policy will depend on whether a Waiver of Premium
Disability Rider is in force. The addition of this Rider, or receipt of benefits
under it, may result in certain tax consequences to a Policyowner. See "FEDERAL
TAX MATTERS."
(g) WAIVER OF SPECIFIED PREMIUM RIDER. This benefit provides for the payment
by Chubb Life of a specified monthly premium into the Policy while the Insured
is totally disabled, as defined in the rider.
(h) WAIVER OF PREMIUM DISABILITY RIDER. This benefit provides for the waiver
of monthly deductions while the Insured is totally disabled, as defined in the
rider.
32
<PAGE>
SETTLEMENT OPTIONS. In addition to a lump sum payment of benefits under the
Policy, any proceeds to be paid under the Policy may be paid in any of four
methods. A settlement option may be designated by notifying Chubb Life in
writing. A lump sum payment of proceeds under the Policy will be made if a
settlement option is not designated. Any amount left with Chubb Life for payment
under an optional payment plan will be transferred to the account of the
Beneficiary in the General Account on the date Chubb Life receives written
instructions. During the life of the Insured, the Policyowner may select a plan.
If a payment plan has not been chosen at the time the Death Benefit becomes
payable, a Beneficiary can choose a plan. If a Beneficiary is changed, the
payment plan selection will no longer be in effect unless the Policyowner
requests that it continue. An option may be elected only if the amount of the
proceeds is $2,000 or more. Chubb Life reserves the right to change the interval
of payments to 3, 6 or 12 months, if necessary, to increase the guaranteed
payments to at least $20 each.
OPTION A.
INSTALLMENTS OF A SPECIFIED AMOUNT. Payments of an agreed amount to be made
each month until the proceeds and interest are exhausted.
OPTION B.
INSTALLMENTS FOR A SPECIFIED PERIOD. Payments to be made each month for an
agreed number of years.
OPTION C.
LIFE INCOME. Payments to be made each month for the lifetime of the payee. It
is guaranteed that payments will be made for a minimum of 10, 15, or 20 years,
as agreed upon.
OPTION D.
INTEREST. Payment of interest on the proceeds held by Chubb Life calculated
at the compound rate of 3% per year. Interest payments will be made at 12, 6, 3
or 1 month intervals, as agreed upon.
The interest rate for Options A, B, and D will not be less than 3% per year.
The interest rate for Option C will not be less than 2 1/2% per year. Interest
in addition to that stated may be paid or credited from time to time under any
option, but only in the sole discretion of Chubb Life.
Unless otherwise stated in the election of an option, the payee of policy
benefits shall have the right to receive the withdrawal value under that option.
For Options A and D, the withdrawal value shall be any unpaid balance of
proceeds plus accrued interest. For Options B and C, the withdrawal value shall
be the commuted value of the remaining payments. Such value will be calculated
on the same basis as the original payments. To receive this value under Option
C, the payee must submit evidence of insurability acceptable to Chubb Life.
Otherwise, the withdrawal value shall be the commuted value of any remaining
guaranteed payments. If the payee should be alive at the end of the guaranteed
period, the payment will be resumed on that date. The payment will then continue
for the lifetime of the payee.
33
<PAGE>
If a payee of policy benefits dies before the proceeds are exhausted or the
prescribed payments made, a final payment will be made in one sum to the estate
of the last surviving payee. The amount to be paid will be calculated as
described for the applicable option in the Withdrawal Value provision of the
Policy.
CALCULATION OF ACCUMULATION VALUE
The Policy provides for an Accumulation Value, which will be determined on a
daily basis. Accumulation Value is the sum of the values in the Divisions plus
the value in the General Account. The Policy's Accumulation Value in the
Divisions is calculated by units and unit values under the Policies, as
described below. The Policy's Accumulation Value will reflect a number of
factors, including the investment experience of the Divisions that are invested
in the Portfolios, any additional net premiums paid, any withdrawals, any
policy loans, and any charges assessed in connection with the Policy.
Accumulation Values in Separate Account C are not guaranteed as to dollar
amount.
On the Allocation Date, the Accumulation Value in Separate Account C is the
initial premium payments, reduced by the State Premium Tax Charge, the
Federal DAC Tax Charge and the Sales Charge, plus interest earned prior to the
Allocation Date, and less the monthly deduction for the first policy month. On
the Allocation Date, the initial number of units credited to Separate Account C
for the Policy will be established. At the end of each Valuation Period
thereafter, the Accumulation Value in a Division is (i) plus (ii) plus (iii)
minus (iv) minus (v) where:
(i) is the Accumulation Value in the Division on the preceding Valuation Date
multiplied by the net investment factor, as described below, for the current
Valuation Period,
(ii) is any Net Premium received during the current Valuation Period which is
allocated to the Division,
(iii) is all Accumulation Values transferred to the Division from another
Division or the General Account during the current Valuation Period,
(iv) is the Accumulation Values transferred from the Division to another
Division or the General Account and Accumulation Values transferred to secure a
Policy Debt during the current Valuation Period, and
(v) is all withdrawals from the Division during the current Valuation Period.
In addition, whenever a Valuation Period includes the Monthly Anniversary
Date, the Accumulation Value at the end of such period is reduced by the
portion of the monthly deduction allocated to the Division.
The Policy's total Accumulation Value in Separate Account C equals the sum of
the Policy's Accumulation Value in each Division thereof.
UNIT VALUES. Units are credited to a Policyowner upon allocation of Net
Premiums to a Division. Each Net Premium payment allocated to a Division will
34
<PAGE>
increase the number of units in that Division. Both full and fractional units
are credited. The number of units and fractional units is determined by
dividing the Net Premium payment by the unit value of the Division to which the
payment has been allocated. The unit value of each Division is determined on
each Valuation Date. The number of units credited will not change because of
subsequent changes in unit value. The dollar value of each Division's units
will vary depending upon the investment performance of the corresponding
Portfolio.
Certain transactions affect the number of units in a Division under a Policy.
Loans, surrenders and withdrawals, withdrawal and transfer fees and charges,
the Surrender Charge, and monthly deductions involve the redemption of units
and will decrease the number of units. Transfers of Accumulation Value among
Divisions will reduce or increase the number of units in a Division, as
appropriate.
The unit value of each Division's units initially under the Policies was
$10.00. Thereafter, the unit value of a Division on any Valuation Date is
calculated by multiplying (1) by (2) where:
(1) is the Division's unit value on the previous Valuation Date; and
(2) is the net investment factor for the Valuation Period then ended.
The unit value of each Division's units on any day other than a Valuation
Date is the unit value as of the next Valuation Date and is used for the
purpose of processing transactions.
NET INVESTMENT FACTOR. The net investment factor measures the investment
experience of each Division and is used to determine changes in unit value from
one Valuation Period to the next Valuation Period. The net investment factor
for a Valuation Period is (i) divided by (ii) minus (iii) where:
(i) is (a) the value of the assets of the Division at the end of the
preceding Valuation Period, plus (b) the investment income and capital gains,
realized or unrealized, credited to the assets of the Division during the
Valuation Period for which the net investment factor is being determined, minus
(c) capital losses, realized or unrealized, charged against those assets during
the Valuation Period, minus (d) any amount charged against the Division for
taxes or any amount set aside during the Valuation Period by Chubb Life to
provide for taxes attributable to the operation or maintenance of that
Division, and
(ii) is the value of the assets of the Division at the end of the preceding
Valuation Period, and
(iii) is a charge no greater than .00136 99 % on a daily basis. This
corresponds to .50% on an annual basis for the Mortality Risk Charge.
CASH VALUE BENEFITS
So long as it remains in force, the Policy provides for certain benefits
prior to the Maturity Date. Subject to certain limitations, the Policyowner may
at any time obtain Cash Value by surrendering the Policy or making withdrawals
35
<PAGE>
from the Policy. The Cash Value equals the Accumulation Value less any
Surrender Charge. In addition, the Policyowner has certain policy loan
privileges under the Policy.
SURRENDER PRIVILEGES. As long as the Policy is in force, a Policyowner may
surrender the Policy at any time by sending a written request along with the
Policy to Chubb Life, or make a withdrawal from the Policy at any time by
sending a written request to Chubb Life. See "FEDERAL TAX MATTERS-Policy
Proceeds."
The surrender value of the Policy equals the Cash Value less any outstanding
Policy Debt. The amount payable upon surrender of the Policy is the surrender
value at the end of the Valuation Period during which the request is received.
The surrender value may be paid in a lump sum or under one of the optional
payment plans specified in the Policy. Proceeds will generally be paid within
seven days of the Date of Receipt of a request for surrender or withdrawal. See
"POLICY BENEFITS AND RIGHTS-Settlement Options."
A Policyowner can obtain a portion of the Policy's Cash Value by withdrawal
of Cash Value from the Policy. A withdrawal from a Policy is subject to the
following conditions:
A. The amount withdrawn may not exceed the Cash Value less any outstanding
debt.
B. The minimum amount that may be withdrawn is $1,000.
C. A charge equal to $50 will be deducted from the amount of each withdrawal.
Withdrawals generally will affect the Policy's Accumulation Value, Cash Value
and the life insurance proceeds payable under the Policy. The Policy's Cash
Value will be reduced by the amount of the withdrawal. The Policy's Accumulation
Value will be reduced by the amount of the withdrawal plus any applicable pro-
rata Surrender Charge. Life insurance proceeds payable under the Policy will
generally be reduced by the amount of the withdrawal plus any applicable pro-
rata Surrender Charge, unless the withdrawal is combined with a request to
maintain or increase the Specified Amount. See "POLICY BENEFITS AND RIGHTS-
Combined Requests".
Under Option I, which provides for life insurance proceeds equal to the
greater of the Specified Amount or the Accumulation Value of the Policy at the
date of death multiplied by the corridor percentage, the Specified Amount will
be reduced by the amount of the withdrawal plus any applicable pro-rata
Surrender Charge. The Specified Amount remaining after a withdrawal may not
be less than $125,000. As a result, Chubb Life will not effectuate any
withdrawal that would reduce the Specified Amount below these minimums. If
increases in Specified Amount previously have occurred, a withdrawal will first
reduce the Specified Amount of the most recent increase, then the most recent
increases successively, then the coverage under the original application. If the
life insurance proceeds payable under either Death Benefit option, both before
and after the withdrawal, is the Accumulation Value multiplied by the corridor
percentage, a withdrawal generally will result in a reduction in life insurance
proceeds equal to the amount paid upon withdrawal, multiplied by the applicable
corridor percentage then in effect.
Under Option II, which provides for life insurance proceeds equal to the
Specified Amount plus Accumulation Value, a reduction in Accumulation Value as
36
<PAGE>
a result of a withdrawal will typically result in a dollar per dollar reduction
in the life insurance proceeds payable under the Policy.
A Policyowner may allocate a withdrawal among the Divisions and the General
Account. If no such allocation is made, a withdrawal will be allocated among
the Divisions and the General Account in the same proportion that the
Accumulation Value in each Division and the Accumulation Value in the General
Account, less any Policy Debt bears to the total Accumulation Value of the
Policy, less any Policy Debt, on the date of withdrawal. See "FEDERAL TAX
MATTERS-Policy Proceeds".
POLICY LOANS. So long as the Policy remains in force, a Policyowner may
borrow money from Chubb Life at any time after the first policy anniversary
using the Policy as the only security for the loan. Loans have priority over
the claims of any assignee or any other person. Generally, the maximum loan
amount is 90% of the Cash Value at the end of the Valuation Period during which
the loan request is received. The maximum amount which may be borrowed at any
given time is the maximum loan amount reduced by any outstanding Policy Debt.
Proceeds of policy loans ordinarily will be disbursed within seven days from
the Date of Receipt of a request for a loan by Chubb Life, although payments
may be postponed under certain circumstances. See "OTHER MATTERS-Postponement
of Payments". Chubb Life may, in its discretion, permit loans to be made by
telephone if the proper authorization form is on file with Chubb Life. So long
as the Policy remains in force, the loan may be repaid in whole or in part
without penalty at any time while an Insured is living.
When a policy loan is made, a portion of the Policy's Accumulation Value
sufficient to secure the loan will be transferred to the General Account. A
policy loan removes the proceeds from the investment experience of Separate
Account C which will have a permanent effect on the Accumulation Value and
Death Benefit even if the loan is repaid. Any loan interest that is due and
unpaid will also be so transferred. Accumulation Value equal to Policy Debt in
the General Account will accrue interest daily at an annual rate of 6%. The
Policyowner may allocate a policy loan among the Divisions and the General
Account. If no such allocation is made the loan will be allocated among the
Divisions and the General Account in the same proportion that the Accumulation
Value in each Division and the Accumulation Value in the General Account less
Policy Debt bears to the total Accumulation Value of the Policy, less Policy
Debt, on the date of the loan.
Chubb Life will charge interest on any outstanding policy loan with such
interest compounded annually. There are two types of loans available. A Type A
loan is charged the same interest rate as the interest credited to the amount of
Accumulation Value held in the General Account to secure loans, which is an
effective rate of 6% per annum. The amount available at any time for a Type A
loan equals the maximum loan amount less the Guideline Single Premium at issue,
as set forth in the Code, less any outstanding Type A loans. Any other loans are
Type B loans. A Type B loan is charged an interest rate of 7.0%. It is possible
for one loan request to result in both a Type A and a Type B loan. A request for
a loan will be granted first as a Type A loan, to the extent available, and then
as a Type B loan. Once a policy loan is granted, it remains a Type A or Type B
until it is repaid. Increases in the Specified Amount will affect the
determination of the amount available for a Type A loan; however, decreases in
the Specified Amount
37
<PAGE>
will not have any such effect. Interest is due and payable at the end of each
policy year, and any interest not paid when due becomes loan principal .
Where applicable, loans are subject to conditions and requirements of the
Employee Retirement Income Security Act of 1974 ("ERISA"), as well as the terms
of any retirement plan in connection with which the Policy has been purchased.
The ERISA rules relating to loans are complex and vary depending on the
individual circumstances of each Policy. Employers and Policyowners should
consult with qualified advisers before exercising the loan privileges.
Policy Debt equals the total of all outstanding policy loans and accrued
interest on policy loans. If Policy Debt exceeds Cash Value, Chubb Life will
notify the Policyowner and any assignee of record. A payment at least equal to
the amount of excess Policy Debt above the Cash Value must be made to Chubb Life
within 61 days from the date Policy Debt exceeds Cash Value, otherwise, the
Policy will lapse and terminate without value. In such event, the Policyowner
may be taxed on the total appreciation under the Policy. The Policy may,
however, later be reinstated, subject to satisfactory proof of insurability and
the payment of a reinstatement premium. See "THE POLICIES-Reinstatement".
So long as the Policy remains in force, Policy Debt may be repaid in whole or
in part at any time during an Insured's life. If there is any existing Policy
Debt, premium payments in the amount of the Planned Periodic Premium, received
at the Premium Frequency, will be applied as premium. Premium payments in excess
of the Planned Periodic Premium or premium payments received other than at the
Premium Frequency, will first be applied as policy loan repayments, then as
premium when the Policy Debt is repaid. For Policyowners with both Type A and
Type B loans, repayments of the loan will be applied first to Type B loans and
then to Type A loans. Upon repayment, the Policy's Accumulation Value securing
the repaid portion of the debt in the General Account will be transferred to the
Divisions and the General Account using the same percentages used to allocate
Net Premiums. Any outstanding Policy Debt is subtracted from life insurance
proceeds payable at the Insured's or last surviving Insured's death, from
Accumulation Value upon surrender, and from Cash Value payable at maturity.
OTHER MATTERS
VOTING PRIVILEGES. To the extent required by law, Chubb Life will vote the
Portfolio shares held in the various Divisions at regular and special
shareholder meetings of the Funds in accordance with instructions received from
persons having voting interests in Separate Account C. If, however, the 1940 Act
or any regulation thereunder should be amended or if the present interpretation
thereof should change and, as a result, Chubb Life determines that it is
permissible to vote the Portfolio shares in its own right, it may elect to do
so. The number of votes on which each Policyowner has the right to instruct will
be determined by dividing the Policy's Accumulation Value in a Division by the
net asset value per share of the corresponding Portfolio in which the Division
invests, or as otherwise required by law. Fractional shares will be counted. The
number of votes on which the Policyowner has the right to instruct will be
determined as of the date coincident with the date established by the Fund for
determining shareholders eligible to vote at the meeting of the Fund. Voting
instructions will be solicited by written communications prior to such meeting
in accordance with procedures established by the Fund. Chubb Life
38
<PAGE>
will vote Fund shares as to which no instructions are received in proportion to
the voting instructions which are received with respect to all Policies
participating in the Fund in accordance with applicable law. Each person having
a voting interest will receive proxy material, reports and other materials
relating to the Fund. The shares held by Chubb Life, including shares for which
no voting instructions have been received, shares held in Separate Account C
representing charges imposed by Chubb Life against Separate Account C under the
Policies and shares held by Chubb Life that are not otherwise attributable to
Policies, will also be voted by Chubb Life in proportion to instructions
received from the owners of variable life insurance policies funded through
Separate Account C. Chubb Life reserves the right to vote any or all such shares
at its discretion to the extent consistent with then current interpretations of
the 1940 Act and rules thereunder.
Chubb Life may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that shares be voted
so as to cause a change in subclassification or investment objective of the Fund
or disapprove an investment advisory contract of the Fund. In addition, Chubb
Life may disregard voting instructions in favor of changes initiated by a
Policyowner in the investment policy or the investment adviser of the Fund if
Chubb Life reasonably disapproves of such changes. A change would be disapproved
only if the proposed change is contrary to state law or prohibited by state
regulatory authorities or Chubb Life determined that the change would be
inconsistent with the investment objectives of Separate Account C or would
result in the purchase of securities for Separate Account C which vary from the
general quality and nature of investments and investment techniques utilized by
other separate accounts created by Chubb Life or any affiliate of Chubb Life
which have similar investment objectives. In the event that Chubb Life does
disregard voting instructions, a summary of that action and the reason for such
actions will be included in the next semi-annual report to the Policyowner.
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS. Chubb Life reserves the
right, subject to compliance with applicable law, to make additions to,
deletions from, or substitutions for the shares held by any Division or which
any Division may purchase. If shares of a Portfolio should no longer be
available for investment or if, in the judgment of Chubb Life's management,
further investment in shares of a Portfolio should become inappropriate in view
of the purposes of the Policy, Chubb Life may substitute shares of any other
investment company for shares already purchased, or to be purchased in the
future under the Policies. No substitution of securities will take place without
notice to and consent of Policyowners and without prior approval of the SEC, all
to the extent required by the 1940 Act. Any surrender by a Policyowner due to a
change in a Portfolio's investment policy will incur any applicable Surrender
Charges.
Portfolio shares are subject to certain investment restrictions which may not
be changed without the approval of the majority of the holders of such
Portfolio. See the accompanying Prospectuses for the Funds.
ANNUAL REPORT. At least once each policy year, Chubb Life will send a report
to the Policyowner which shows the current Accumulation Value, Cash Value,
premiums paid and all charges incurred as well as the balance of outstanding
policy loans for the entire 12 months of the previous calendar year. The first
annual report sent to Policyowners will only reflect those months of the
previous calendar year
39
<PAGE>
during which the Policy was in effect. Chubb Life will also send to the
Policyowner the reports required by the 1940 Act.
CONFIRMATION. Confirmation notices (or other appropriate notification) will be
mailed promptly at the time of the following transactions:
(1) policy issue;
(2) receipt of premium payments;
(3) initial allocation among Divisions on the Allocation Date;
(4) transfers among Divisions;
(5) change of premium allocation;
(6) change between Death Benefit Option I and Option II;
(7) increases or decreases in Specified Amount;
(8) withdrawals, surrenders or loans;
(9) receipt of loan repayments;
(10) reinstatements; and
(11) redemptions due to insufficient funds.
LIMITATION ON RIGHT TO CONTEST. Chubb Life will not contest or revoke the
insurance coverage provided under the Policy, except for any subsequent increase
in Specified Amount, after the Policy has been in force during the lifetime of
each Insured for a period of two years from the date it is issued or reinstated.
Any increase in the Specified Amount will not be contested after such increase
has been in force during the lifetime of each Insured for two years following
the effective date of the increase. Any increase will be contestable within the
two year period only with regard to statements concerning this increase.
MISSTATEMENTS. If the age or sex of an Insured has been misstated in an
application, including a reinstatement application, Chubb Life will adjust the
benefits payable to reflect the correct age or sex.
SUICIDE. The Policy does not cover the risk of suicide within two years from
the date the Policy is issued or two years from the date of any increase in
Specified Amount with respect to such increase, whether the Insured is sane or
insane, unless otherwise specified by state law. In the event of suicide of any
Insured within two years of the date the Policy is issued, the only liability of
Chubb Life will be a refund of premiums paid, without interest, less any Policy
Debt and less any withdrawal. In the event of suicide by any Insured within two
years of an increase in Specified Amount, the only liability of Chubb Life with
respect to the increase will be a refund of the cost of insurance for such
increase.
40
<PAGE>
Under Chubb Advisor II, if the first death is by suicide and the surviving
Insured is classified by Chubb Life as insurable on the Policy Date, Chubb Life
will issue, upon request of the Policyowner and without evidence of
insurability, an individual policy providing coverage on the life of the
surviving Insured equal to the coverage on the Insureds for which premiums or
cost of insurance was refunded.
Beneficiaries. The original Beneficiaries and contingent Beneficiaries are
designated by the Policyowner on the application. If changed, the primary
Beneficiary or contingent Beneficiary is as shown in the latest change filed
with Chubb LIfe. One or more primary or contingent Beneficiaries may be named
in the application. In such case, the proceeds of the Policy will be paid in
equal shares to the survivors in the appropriate beneficiary class unless
requested otherwise by the Policyowner.
Postponement of Payments. Payment of any amount upon surrender,
withdrawal, policy loan, or benefits payable at death or maturity may be
postponed whenever: (i) the New York Stock Exchange is closed other than
customary week-end and holiday closings, or trading on the New York Stock
Exchange is restricted as determined by the SEC; (ii) the SEC by order permits
postponement for the protection of Policyowners; or (iii) an emergency exists,
as determined by the SEC, as a result of which disposal of securities is not
reasonably practical or it is not reasonably practicable to determine the value
of net assets in Separate Account C.
Assignment. Ownership of the Policy can be assigned or the Policy can be
assigned as collateral security. Chubb Life must be notified in writing if the
Policy has been assigned. Each assignment will be subject to any payments made
or action taken by Chubb Life prior to its notification of such assignment.
Chubb Life is not responsible for the validity of an assignment. A Policyowner's
rights and the rights of the Beneficiary may be affected by an assignment.
Illustration of Benefits and Values. The Policyowner may request
illustrations of Death Benefits, Accumulation Values and Cash Values at any time
after the Policy Date. Illustrations will be based on the existing Accumulation
Value and Cash Value at the time of the request and both the maximum and then
current costs of insurance rates. Although Chubb Life does not currently charge
a fee for such illustrations, it reserves the right to charge an administrative
fee, not to exceed $25, to cover the cost of preparing the illustrations.
Non-Participating Policy. The policy does not share in any surplus
distributions of Chubb Life. No dividends are payable with respect to the
Policy.
THE GENERAL ACCOUNT
POLICYOWNERS MAY ALLOCATE NET PREMIUMS AND TRANSFER ACCUMULATION VALUE TO THE
GENERAL ACCOUNT. BECAUSE OF EXEMPTIVE AND EXCLUSIONARY PROVISIONS, INTERESTS
IN THE GENERAL ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
AND THE GENERAL ACCOUNT HAS NOT BEEN REGISTERED AS AN INVESTMENT COMPANY UNDER
THE 1940 ACT. ACCORDINGLY, NEITHER THE GENERAL ACCOUNT NOR ANY INTERESTS THEREIN
ARE SUBJECT TO THE PROVISIONS OF THESE ACTS, AND CHUBB LIFE HAS BEEN
41
<PAGE>
ADVISED THAT THE STAFF OF THE SEC HAS NOT REVIEWED THE DISCLOSURES IN THIS
PROSPECTUS RELATING TO THE GENERAL ACCOUNT. DISCLOSURES REGARDING THE GENERAL
ACCOUNT MAY, HOWEVER, BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF
TEH FEDERAL SECURITIES LAWS RELATING TO THE ACCURACY AND COMPLETENESS OF
STATEMENTS MADE IN PROSPECTUSES.
GENERAL DESCRIPTION. The General Account consists of all assets owned by Chubb
Life other than those in Separate Account C and other separate accounts which
have been or may be established by Chubb Life. Subject to applicable law, Chubb
Life has sole discretion over the investment of the assets of the General
Account.
A Policyowner may elect to allocate Net Premiums to the General Account or to
transfer Accumulation Value to or from the Divisions and the General Account.
The allocation or transfer of funds to the General Account does not entitle a
Policyowner to share in the investment experience of the General Account.
Instead, Chubb Life guarantees that Accumulation Value in the General Account
will accrue interest daily at an effective annual rate of at least 4%,
independent of the actual investment experience of the General Account. Chubb
Life is not obligated to credit interest at any higher rate, although Chubb Life
may, in its sole discretion, do so.
If the Policy issued as applied for is not accepted or the "free look" is
exercised, no interest will be credited and Chubb Life will retain any interest
earned on the initial Net Premium.
GENERAL ACCOUNT ACCUMULATION VALUE. The Accumulation Value in the General
Account on the Allocation Date is equal to the portion of the Net Premium
payments, plus interest earned, which have been paid and allocated to the
General Account, less the portion of the first monthly deduction allocated to
the General Account.
Chubb Life guarantees that interest credited to each Policyowner's
Accumulation Value in the General Account will not be less than an effective
annual rate of at least 4%. Chubb Life may, IN ITS SOLE DISCRETION, credit a
higher rate of interest, although it is not obligated to credit interest in
excess of 4% per year, and might not do so. ANY INTEREST CREDITED ON THE
POLICY'S ACCUMULATION VALUE IN THE GENERAL ACCOUNT IN EXCESS OF THE GUARANTEED
RATE OF 4% PER YEAR WILL BE DETERMINED IN THE SOLE DISCRETION OF CHUBB LIFE. THE
POLICYOWNER ASSUMES THE RISK THAT INTEREST CREDITED MAY NOT EXCEED THE
GUARANTEED MINIMUM RATE OF 4% PER YEAR. Accumulation Value in the General
Account that equals indebtedness will be credited interest daily at an effective
annual rate of 6%. The Accumulation Value in the General Account will be
calculated on each Monthly Anniversary Date of the Policy, or on any other date
with consistent adjustments.
Chubb Life guarantees that, at any time prior to the Maturity Date, the
Accumulation Value in the General Account will not be less than the amount of
the Net Premiums allocated or Accumulation Value transferred to the General
Account, plus interest at the rate of 4% per year, plus any excess interest
which Chubb Life credits and any amounts transferred into the General Account,
less the sum of all charges allocable to the General Account and any amounts
deducted from the General Account in connection with withdrawals or transfers to
Separate Account C.
42
<PAGE>
DETERMINATION OF CHARGES. The portion of the monthly deduction attributable to
the General Account will be determined as of the actual Monthly Anniversary
Date, even if the Monthly Anniversary Date does not fall on a Valuation
Date.
DISTRIBUTION OF THE POLICY
The Policy will be sold by individuals who, in addition to being licensed as
life insurance agents for Chubb Life, are also registered representatives of
Chubb Securities Corporation, the principal underwriter of the Policies, or of
broker-dealers who have entered into written sales agreements with the principal
underwriter. Chubb Securities Corporation is a New Hampshire corporation
organized in 1969. Chubb Securities Corporation is registered with the SEC under
the Securities and Exchange Act of 1934 as a broker-dealer and is a member of
the National Association of Securities Dealers, Inc. Each broker-dealer with
whom Chubb Securities Corporation has executed a selling agreement will receive
as a commission the full charge of 3% imposed on premiums. Compensation to
selling broker-dealers may also include a trail commission of up to a maximum of
.25% of Accumulation Value. Any such broker-dealers will be registered under the
Securities Exchange Act of 1934 and their representatives selling the Policies
will be authorized under applicable insurance laws and regulations to sell
insurance products of this type. It is not expected that the compensation paid
by Chubb Life in connection with such sales will exceed that described above for
sales by Chubb Securities Corporation's registered representatives.
Chubb Life and Separate Account C have entered into a Distribution Agreement
with Chubb Securities Corporation which continues until terminated by any party
on 60 days notice. Chubb Securities Corporation is not obligated to sell any
specified amount of Policies and may not assign its responsibilities under the
Distribution Agreement. Chubb Life reimburses Chubb Securities Corporation for
its expenses under the Distribution Agreement.
Chubb Securities Corporation is engaged in the sale and distribution of
various other securities, including other flexible premium variable life
policies. It acts as principal underwriter for other flexible premium variable
life policies and variable annuity contracts issued by Chubb Life (and its
affiliated insurance companies) and for the Chubb America Fund, Inc., and the
Chubb Investment Funds, Inc. mutual funds. It sells a number of mutual fund
shares as well as shares of other securities and limited partnership interests
in both public and private limited partnerships. Mutual fund shares available
for sale by Chubb Securities Corporation are sold pursuant to non-exclusive
selling agreements with the distributors of the mutual funds.
GROUP OR SPONSORED ARRANGEMENTS. Policies may be purchased under group or
sponsored arrangements, as well as on an individual basis. A "group arrangement"
includes a program under which a trustee, employer or similar entity purchases
individual Policies covering a group of individuals on a group basis. Examples
of such arrangements are employer-sponsored benefit plans and deferred
compensation plans. A "sponsored arrangement" includes a program under which an
employer permits group solicitation of its employees or an association permits
group solicitation of its members for the purchase of Policies on an individual
basis.
Chubb Life may reduce the following types of charges for Policies issued in
connection with group or sponsored arrangements: the Sales Charge, the cost of
insurance charge, surrender or withdrawal charges, administrative charges for
withdrawal or transfer, the Administration Charge, the guaranteed death benefit
charge and charges for optional rider benefits.
Chubb Life may also issue Policies in connection with group or sponsored
arrangements on a "non-medical" or guaranteed issue basis. Due to the
underwriting criteria established for Policies issued on a non-medical,
guaranteed issue basis, actual monthly cost of insurance charges may be higher
than the current cost of insurance charges under otherwise identical Policies
that are medically underwritten. In addition, Chubb Life may also specify
different minimum Specified Amounts at issue for Policies issued in connection
with group or sponsored arrangements.
Certain charges or underwriting requirements set forth in this Prospectus may
also be reduced or eliminated for Policies issued in connection with an exchange
of another Chubb Life policy or contract or policies or contracts of any
affiliates of Chubb Life.
The amounts of any reduction, the charges to be reduced, the elimination or
modification of underwriting requirements, and the criteria for applying a
reduction or modification will generally reflect the reduced sales and
administrative effort, costs and differing mortality experience appropriate to
the circumstances giving rise to the reduction or modification. The charges will
be reduced in accordance with Chubb Life's company practice in effect when the
Policy is issued. The elimination or modification of underwriting requirements
will be done in accordance with Chubb Life's administrative procedures with
respect to underwriting when the Policy is issued. Reductions and modifications
will not be made where prohibited by applicable law and will not be unfairly
discriminatory against any person including the purchasers to whom the reduction
or modification applies and all other Owners of the Policy.
43
<PAGE>
MANAGEMENT OF CHUBB LIFE
Executive Officers and Directors of Chubb Life
Directors
Principal Occupation and
Name Business Address
- --------------------------------------------------------------------------------
John C. Beck............... Managing Partner
Beck, Mack and Oliver
330 Madison Avenue, 31st Floor
New York, New York 10017-5001
James I. Cash.............. Professor
Harvard Business School
Soldiers Field Road
Boston, Massachussetts 02163
*Percy Chubb, III........... Vice Chairman
The Chubb Corporation
(also serves as Vice Chairman of
Chubb Life Insurance Company of America)
15 Mountain View Road
P.O. Box 1615
Warren, New Jersey 07061-1615
Joel J. Cohen.............. Managing Director
Donaldson, Lufkin & Jenrette Securities
Corporation
140 Broadway, 49th Floor
New York, NY 10005
David H. Hoag.............. Chairman, President & CEO
The LTV Corporation
25 West Prospect Avenue
Cleveland, OH 44115
Robert V. Lindsay.......... Former President
J.P. Morgan & Co., Inc.
Altamont Road
Millbrook, NY 12545
Thomas C. MacAvoy.......... Professor
Darden Graduate School of Business
Administration
University of Virginia
Box 6550
Charlottesville, VA 22906-6550
Gertrude G. Michelson..... Senior Vice President
R.H. Macy & Co., Inc.
Herald Square-13th Floor
New York, NY 10001
*Dean R. O'Hare............. Chairman and President
The Chubb Corporation
(also serves as Chairman of Chubb Life
Insurance Company of America)
15 Mountain View Road
P.O. Box 1615
Warren, NJ 07061-1615
Warren B. Rudman........... Partner
Paul, Weiss, Rifkind, Wharton & Garrison
1615 L Street, N.W.,
Suite 1300
Washington, D.C. 20036
Sir David G. Scholey, CBE.. Chairman
S.G. Warburg Group plc
One Finsbury Avenue
London EC2M 2PA England
Raymond G.H. Seitz......... Former Ambassador of the United States of
America
10 Trevor Square
44
<PAGE>
London SW7 IDT, England
Lawrence M. Small.......... President and Chief Operating Officer
Federal National Mortgage Association
3900 Wisconsin Avenue, N.W.
Washington, DC 20016
Richard D. Wood............ Former Chairman
Eli Lilly and Company
Lilly Corporate Center
Indianapolis, IN 46285
- ------
* Executive Officer of Chubb Life
Executive Officers (Other Than Directors)
Name
-----------------------
Theresa M. Stone....... President and Chief Executive Officer
David S. Fowler........ Vice Chairman
Charles C. Cornelio.... Executive Vice President, Chief Administrative
Officer, Assistant Secretary
Richard V. Werner...... Executive Vice President and Chief Financial Officer
Ronald R. Angarella.... Senior Vice President
Frederick H. Condon.... Senior Vice President, General Counsel and Secretary
Vincent G. Mace, Jr. .. Senior Vice President and Group Actuary
Michael O'Reilly....... Senior Vice President
Warren L. Reynolds..... Senior Vice President
Paul Strong............ Senior Vice President
Arthur V. Anderson........... Vice President
***Thomas M. Bodrogi............ Vice President
Mark Connolly................ Vice President
Ronald H. Emery.............. Vice President
J. Michael Gannon............ Vice President and Counsel
*Ned I. Gerstman.............. Vice President
Donald M. Kane............... Vice President
Patrick A. Lang.............. Vice President
Deborah A. Leitch............ Vice President
Sandra M. MacIntyre.......... Vice President
**Edward C. MacKenzie.......... Vice President
*Justin J. Manjorin........... Vice President
Donna L. Metcalf............. Vice President
Thomas E. Murphy, Jr. M.D. .. Vice President and Associate Medical Director
Kenneth L. Robinson, Jr...... Vice President
James M. Sandelli............ Vice President
Russell C. Simpson........... Vice President and Treasurer
James S. Smith............... Vice President
William A. Spencer........... Vice President
William H. Tate.............. Vice President
John A. Thomas............... Vice President
Ernest J. Tsouros............ Vice President
David G. Underwood, MD....... Vice President and Medical Director
John W. Wells................ Vice President
Addresses for the Executive Officers (other than Directors) are as follows:
* The Chubb Corportation, 15 Mountain View Road, Warren, New Jersey 07061
** Chubb Life Insurance Company of America, 832 Georgia Avenue, Post Office Box
1369, Chattanooga, Tennessee 37401
*** Chubb Life Insurance Company of America, Eight Sylvan Way, Post Office Box
216, Parsippany, New Jersey 07054
All Others: Chubb Life Insurance Company of America, One Granite Place, Post
Office Box 515, Concord, New Hampshire 03301-0515
45
<PAGE>
The officers and employees of Chubb Life who have access to the assets of
Separate Account C are covered by a fidelity bond issued by Aetna Casualty and
Surety Company in the amount of $35,000,000.
STATE REGULATION OF CHUBB LIFE
Chubb Life Insurance Company of America is governed under the laws of the
state of New Hampshire and is subject to regulation by the Insurance
Commissioner of New Hampshire. An annual statement is filed with the New
Hampshire Insurance Commissioner on or before March 1 of each year covering the
operations and reporting on the financial condition of Chubb Life as of December
31 of the preceding year. Periodically, the Commissioner examines the assets and
liabilities of Chubb Life and Separate Account C and verifies their adequacy and
a full examination of Chubb Life's operations is conducted by the Commissioner
at least every five years.
In addition, Chubb Life is subject to the insurance laws and regulations of
other states within which it is licensed to operate. Generally, the insurance
department of any other state applies the laws of the state of domicile in
determining permissible investments.
FEDERAL TAX MATTERS
TAX CONSIDERATIONS. The following description is a brief summary of some of
the tax rules, primarily related to Federal income taxes under the Code, which,
in the opinion of Chubb Life, are currently in effect and is not intended as tax
advice. Chubb Life believes that, as discussed below, the Policy will in general
receive favorable tax treatment under the Code. Because there are issues as to
which the law is still developing or may change, however, and because this
information is not intended as tax advice, Chubb Life recommends that the
Policyowner or prospective Policyowner rely only on the advice of a qualified
tax adviser.
POLICY PROCEEDS. The Policy contains provisions not found in traditional life
insurance policies providing only for fixed benefits. However, under the Code,
the Policy should qualify as a life insurance contract for Federal income tax
purposes, with the result that all Death Benefits paid under the Policy will
generally be fully excludable from the gross income of the Policy's Beneficiary
for Federal income tax purposes and, as long as the Policy remains in force,
income earned on the Policy will not be subject to Federal income tax unless and
until there is a distribution from the Policy. Policyowners should consult with
their own tax advisers in this regard.
The Federal income tax treatment of a distribution from the Policy will depend
on whether a Policy is a life insurance policy and also if it is determined to
be a "modified endowment contract," as defined by the Code. Chubb Life will
notify a Policyowner if the amount of premiums paid in would cause a Policy to
be a modified endowment contract and will allow a refund of the excess premium.
Thus, the Policyowner may choose to have the Policy treated as a modified
endowment contract.
A modified endowment contract is a life insurance policy which fails to meet a
"seven-pay" test. In general, a policy will fail the seven-pay test if the
cumulative amount of premiums paid under the policy at any time during the first
seven policy years exceeds a calculated premium level. The calculated seven-pay
premium level is based on a hypothetical policy issued on the same insured
persons and for the same initial death benefit which, under specified conditions
(which include the absence of expense and administrative charges), would be
fully paid for after seven years. Your policy will be treated as a modified
endowment unless the cumulative premiums paid under your policy, at all times
during the first seven policy years, are less than or equal to the cumulative
seven-pay premiums which would have been paid under the hypothetical policy on
or before such times.
46
<PAGE>
seven-pay premium level is based on a hypothetical policy issued on the same
insured persons and eath benefit which, under specified conditions (which
include the absence of expense and admini be fully paid for after seven years.
Your policy will be treated as a modified endowment unless paid under your
policy, at all times during the first seven policy years, are less than or equal
pay premiums which would have been paid under the hypothetical policy on or
before such times.
Whenever there is a "material change" under a policy, it will generally be
treated as a new contract for purposes of determining whether the policy is a
modified endowment, and subject to a new seven-pay premium period and a new
seven-pay limit. The new seven-pay limit would be determined taking into
account, under a downward adjustment formula, the Policy Account Value of the
policy at the time of such change. A materially changed policy would be
considered a modified endowment if it failed to satisfy the new seven-pay limit.
A material change could occur as a result of a change in death benefit option,
the selection of additional benefits, the restoration of a terminated policy and
certain other changes.
If the benefits under your policy are reduced, for example, by requesting a
decrease in Face Amount, or in some cases by making partial withdrawals,
terminating additional benefits under a rider, changing the death benefit
option, or as a result of policy termination, the calculated seven-pay premium
level will be redetermined based on the reduced level of benefits and applied
retoractively for purposes of the seven-pay test. If the premiums previously
paid are greater than the recalculated seven-pay premium level limit, the policy
will become a modified endowment. Generally, a life insurance policy which is
received in exchange for a modified endowment or a modified endowment which
terminates and is restored, will also be considered a modified endowment.
If a Policy is deemed to be a modified endowment contract, any
distribution from the Policy will be taxed in a manner comparable to
distributions from annuities (i.e., on an "income-first" basis);
distributions for this purpose include a loan or partial withdrawal.
Any such distributions will be considered taxable income to the
extent Accumulation Value under the Policy exceeds investment in the
Policy.
A 10% penalty tax will apply to the taxable portion of such a
distribution. No penalty will apply to distributions (i) to
taxpayers 59 1/2 years of age or older, (ii) in the case of a
disability which can be expected to result in death or to be of
indefinite duration or (iii) received as part of a series of
substantially equal periodic annuity payments for the life (or life
expectancy) of the taxpayer or the joint lives (or joint life
expectancies) of the taxpayer and his beneficiary.
To the extent a Policy becomes a modified endowment contract, any
distribution, including any loan, which occurs in the policy year it
becomes a modified endowment contract and in any year thereafter,
will be taxable income to the policyowner. Also, any distributions
within two years before a Policy becomes a modified endowment
contract will also be income taxable to the policyowner. The
Secretary of the Treasury has been authorized to prescribe rules
which would similarly treat other distributions made in anticipation
of a policy becoming a modified endowment contract. For purposes of
determining the amount of any distribution includable in income, all
modified endowment contract policies that fail the above-described
tests which are issued by the same insurer, or its affiliates, to
the same policyowner during any calendar year are treated as one
contract. The Secretary of the Treasury is also authorized to issue
regulations in this connection.
In addition to the distribution rules for modified endowment
contracts, the Code and proposed regulations thereunder require that
reasonable mortality and other charges be used in satisfying the
definition of life insurance. The death benefit under a policy which
meets this definition will continue to be excluded
47
<PAGE>
from the beneficiary's gross income. Chubb Life believes that the Policies meet
this definition. However, there is uncertainty as to the meaning of "reasonable
mortality charges" and resultant uncertainties as to Chubb Advisor II's
qualification if a different definition is adopted by the Treasury Department.
As long as a policy does not violate the tests described above, it will not fail
to meet the tests of the Code and the general tax provisions described herein
still apply.
The foregoing summary does not purport to be complete or to cover all
situations, and, as always, there is some degree of uncertainty with respect to
the application of the current tax laws. In particular, prior to the issuance of
final regulations or other clarifications under certain sections of the Code,
there may be some uncertainties about the tax treatment of the Policy with
respect to the mortality charges, substandard risks and any extension of the
Maturity Date. In addition to the provisions discussed above, the United States
Congress may consider other legislation which, if enacted, could adversely
affect the tax treatment of life insurance policies. Also, the Treasury
Department may amend current regulations or adopt new regulations with respect
to this and other Code provisions. Therefore, Policyowners are advised to
consult a tax adviser or attorney for more complete tax information,
specifically regarding the applicability of the Code provisions to an individual
Policyowner's situation.
Under normal circumstances, the Policy is not a modified endowment contract
and loans received under the Policy will be construed as indebtedness of the
Policyowner in the same manner as loans under a fixed benefit life insurance
policy and no part of any loan under the Policy is expected to constitute income
to the Policyowner. Policyholders are advised to consult a tax adviser or
attorney regarding the deduction of interest paid on loans.
Even if the Policy is not a modified endowment contract, a partial withdrawal
together with a reduction in death benefits during the first 15 policy years may
create taxable income for the Policyowner. The amount of that taxable income is
determined under a complex formula and it may be equal to part or all of, but
not greater than, the income on the Policy. A partial withdrawal made after the
first 15 policy years will be taxed on a recovery of premium-first basis, and
will only be subject to Federal income tax to the extent such proceeds exceed
the total amount of premiums the Policyowner has paid that have not been
previously withdrawn.
If a Policyowner makes a partial withdrawal, surrender, loan or exchange of
the Policy, Chubb Life may be required to withhold Federal income tax from the
portion of the money received by the Policyowner that is includable in the
Policyowner's Federal gross income. A Policyowner who is not a corporation may
elect not to have such tax withheld; however, such election must be made before
Chubb Life makes the payment. In addition, if a Policyowner fails to provide
Chubb Life with a correct taxpayer identification number (usually a social
security number) or if the Treasury notifies Chubb Life that the taxpayer
identification number which has been provided is not correct, the election not
to have such taxes withheld will not be effective. In any case, a Policyowner is
liable for payment of the Federal income tax on the taxable portion of money
received, whether or not an election to have Federal income tax withheld is
made. If a Policyowner elects not to have Federal income tax withheld, or if the
amount withheld is insufficient, then the Policyowner may be responsible
48
<PAGE>
for payment of estimated tax. A Policyowner may also incur penalties under the
estimated tax rules if the withholding and estimated tax payments are
insufficient. Chubb Life suggests that Policyowners consult with a tax adviser
or attorney as to the tax implications of these matters.
In the event that a Policy is owned by the trustee under a pension or profit
sharing plan, or similar deferred compensation arrangement, the tax consequences
of ownership or receipt of proceeds under the Policy could differ from those
stated herein. However, if ownership of such a Policy is transferred from the
plan to a plan participant (upon termination of employment, for example), the
Policy will be subject to all of the Federal tax rules described above. A Policy
owned by a trustee under such a plan may be subject to restrictions under ERISA
and a tax adviser should be consulted regarding any applicable ERISA
requirements.
The Policy may also be used in various arrangements, including nonqualified
deferred compensation or salary continuation plans, split dollar insurance
plans, executive bonus plans and others, where the tax consequences may vary
depending on the particular facts and circumstances of each individual
arrangement. A tax adviser should be consulted regarding the tax attributes of
any particular arrangement where the value of it depends in part on its tax
consequences.
Federal estate and local estate, inheritance and other tax consequences of
ownership or receipt of policy proceeds depend upon the circumstances of each
Policyowner and Beneficiary.
Current Treasury regulations set standards for diversification of the
investments underlying variable life insurance policies in order for such
policies to be treated as life insurance. Chubb Life believes it presently is in
compliance with the diversification requirements as set forth in the regulations
and intends to remain in compliance with such diversification requirements. If
the diversification requirements are not satisfied, the Policy would not be
treated as a life insurance contract. As a consequence to the Policyowner,
income earned on a Policy would be taxable to the Policyowner in the calendar
quarter in which the diversification requirements were not satisfied, and for
all subsequent calendar quarters.
The Secretary of the Treasury may issue a regulation or a ruling which will
prescribe the circumstances in which a policyowner's control of the investments
of a segregated asset account may cause the policyowner, rather than the
insurance company, to be treated as the owner of the assets of the account. The
regulation or ruling could impose requirements that are not reflected in the
Policy, relating, for example, to such elements of policyowner control as
premium allocation, investment selection, transfer privileges and investments in
a division focusing on a particular investment sector. It has also been
suggested that, in certain circumstances, control over the investment adviser
might constitute prohibited policyowner control. Chubb Life believes that
policyowner control will not exist under the Policy. Because failure to comply
with any such regulation or ruling presumably would cause earnings on a
Policyowner's interest in Separate Account C to be includable in the
Policyowner's gross income in the year earned, Chubb Life has reserved certain
rights to alter the Policy and investment alternatives so as to comply with such
regulation or ruling. Chubb Life believes that any such regulation or
49
<PAGE>
ruling would apply prospectively. Since the regulation or ruling has not been
issued, there can be no assurance as to the content of such regulation or ruling
or even whether application of the regulation or ruling will be prospective. For
these reasons, Policyowners are urged to consult with their own tax advisers.
A Policyowner may elect to exchange Chubb Advisor II for two individual Chubb
Advisor I policies provided the conditions under the Policy Exchange Option
Rider are met. This could have adverse tax consequences including, but not
limited to, the recognition of taxable income in an amount up to any taxable
gain in the Policy at the time of the exchange.
Policyowners are advised that the exercise of an Exchange of Insured Rider
will give rise to tax consequences and are urged to consult with a tax adviser
prior to exercising such rider.
Policyowners are advised that the Federal income tax status of the Terminal
Illness Accelerated Benefit Rider is uncertain at this time. Benefit proceeds
are not specifically excluded from taxable income under Section 101 of the Code.
Under regulations proposed by the Internal Revenue Service on December 14, 1992,
terminal illness benefit proceeds will be treated as excludable from taxable
income under Section 101 of the Code. As currently proposed, tax-free treatments
will only be accorded to benefit proceeds received on or after the date that
these regulations become final. In addition, while only important for a premium
paid rider, rider benefits are not expressly included as "Qualified Additional
Benefits" in Section 7702(f)(5) of the Code. Also, there is a question as to
whether or not the addition of an accelerated benefit rider constitutes a
Section 7702A(c)(3)(A) "material change" in benefit, thereby causing the Policy
to be treated as a new Policy and subject to a new seven-pay test, with
appropriate adjustments to take into account the cash surrender values under the
contract. It is likely, but not entirely certain, that the final regulations,
when adopted, will not produce a different tax result.
The foregoing summary does not purport to be complete or to cover all
situations, including the possible tax consequences of changes in ownership.
Counsel and other competent advisers should be consulted for more complete
information.
CHARGE FOR CHUBB LIFE INCOME TAXES. Chubb Life is presently taxed as a life
insurance company under the provisions of the Code. The Code specifically
provides for adjustments in reserves for variable policies, and Chubb Life will
include flexible premium life insurance operations in its tax return in
accordance with these rules.
Currently no charge is made against Separate Account C for Chubb Life's
Federal income taxes, or provisions for such taxes, that may be attributable to
Separate Account C. Chubb Life may charge each Division for its portion of any
income tax charged to Chubb Life on the Division or its assets. See "CHARGES AND
DEDUCTIONS-Premium Charges" for a description of the Federal DAC tax charge
deducted from premium payments. Under present laws, Chubb Life may incur state
and local taxes (in addition to premium taxes) in several states. At present,
these taxes are not significant. If they increase, however, Chubb Life may
decide to make charges for such taxes or provisions for such taxes against
Separate Account C. Chubb Life would retain any investment earnings on any tax
charges accumulated in a Division. Any such charges against Separate Account C
50
<PAGE>
or its Divisions could have an adverse effect on the investment experience of
such Division.
EMPLOYMENT BENEFIT PLANS
Employers and employee organizations should consider, in consultation with
counsel, the impact of Title VII of the Civil Rights Act of 1964 on the purchase
of a Policy in connection with an employment-related insurance or benefit plan.
The United States Supreme Court held, in a 1983 decision, that, under Title VII,
optional annuity benefits under a deferred compensation plan could not vary on
the basis of sex.
LEGAL PROCEEDINGS
There are no legal proceedings to which Separate Account C is a party or to
which the assets of any of the Divisions are subject. Chubb Life is not involved
in any litigation that is of material importance in relation to its total assets
or that relate to Separate Account C.
EXPERTS
The financial statements of Chubb Life as of December 31, 1994 and for the
year then ended, appearing in this Prospectus and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth in their
report thereon appearing elsewhere herein and in the Registration Statement, and
are included in reliance upon such report given upon the authority of such firm
as experts in accounting and auditing.
Actuarial matters included in this Prospectus have been examined by Michael J.
LeBoeuf, FSA, MAAA as stated in the opinion filed as an exhibit to the
Registration Statement.
REGISTRATION STATEMENT
A Registration Statement has been filed with the SEC under the Securities Act
of 1933, as amended, with respect to the Policies offered hereby. This
Prospectus does not contain all the information set forth in the Registration
Statement and the amendments and exhibits to the Registration Statement to all
of which reference is made for further information concerning Separate Account
C, Chubb Life and the Policies offered hereby. Statements contained in this
Prospectus as to the contents of the Policy and other legal instruments are
summaries. For a complete statement of the terms thereof reference is made to
such instruments as filed.
FINANCIAL STATEMENTS
The financial statements of Chubb Life which are included in the Prospectus
should be considered only as bearing on the ability of Chubb Life to meet its
obligations under the Policy. They should not be considered as bearing on the
investment experience of the assets held in Separate Account C.
51
<PAGE>
APPENDIX A
CASH VALUE ACCUMULATION TEST
CORRIDOR PERCENTAGES
CHUBB ADVISOR I
<TABLE>
<CAPTION>
Attained Non-Smoker Attained Smoker
Age Male Female Age Male Female
--- ---- ------ --- ---- ------
<S> <C> <C> <C> <C> <C>
0 1,257% 1,469% 0 n/a n/a
1 1,268 1,468 1 n/a n/a
2 1,234 1,428 2 n/a n/a
3 1,200 1,387 3 n/a n/a
4 1,165 1,347 4 n/a n/a
5 1,132 1,307 5 n/a n/a
6 1,098 1,268 6 n/a n/a
7 1,064 1,229 7 n/a n/a
8 1,031 1,191 8 n/a n/a
9 998 1,154 9 n/a n/a
10 966 1,117 10 n/a n/a
11 934 1,082 11 n/a n/a
12 904 1,047 12 n/a n/a
13 875 1,013 13 n/a n/a
14 848 981 14 n/a n/a
15 822 949 15 665% 835%
16 797 919 16 646 808
17 774 890 17 627 783
18 752 862 18 609 758
19 730 834 19 592 734
20 709 808 20 575 710
21 689 782 21 559 688
22 668 757 22 543 665
23 648 733 23 527 644
24 629 709 24 512 623
25 609 686 25 496 603
26 590 664 26 481 584
27 572 642 27 466 565
28 553 621 28 451 546
29 535 601 29 437 528
30 518 581 30 423 511
31 501 562 31 409 495
32 484 543 32 396 478
33 468 525 33 383 463
34 453 508 34 371 448
35 438 491 35 359 433
36 423 475 36 347 419
37 409 459 37 336 406
38 395 444 38 326 393
</TABLE>
A-1
<PAGE>
<TABLE>
<CAPTION>
Attained Non-Smoker Attained Smoker
Age Male Female Age Male Female
--- ---- ------ --- ---- ------
<S> <C> <C> <C> <C> <C>
39 382% 429% 39 315% 380%
40 370 415 40 305 368
41 358 402 41 296 357
42 346 389 42 287 346
43 335 376 43 278 335
44 324 364 44 270 325
45 314 353 45 262 316
46 304 342 46 254 306
47 294 331 47 247 298
48 285 321 48 240 289
49 276 311 49 233 281
50 267 301 50 227 273
51 259 292 51 220 265
52 251 283 52 214 258
53 243 274 53 209 251
54 236 266 54 203 244
55 229 258 55 198 237
56 222 251 56 193 231
57 216 243 57 189 225
58 210 236 58 184 219
59 204 229 59 180 213
60 198 223 60 176 208
61 193 216 61 172 202
62 188 210 62 168 197
63 183 204 63 164 192
64 178 198 64 161 187
65 174 193 65 158 182
66 169 188 66 155 178
67 165 183 67 152 174
68 161 178 68 149 170
69 158 173 69 146 166
70 154 169 70 144 162
71 151 164 71 141 158
72 148 160 72 139 155
73 145 156 73 137 151
74 142 153 74 135 148
75 140 149 75 133 145
76 137 146 76 131 142
77 135 143 77 129 140
78 133 140 78 128 137
79 131 137 79 126 135
80 129 135 80 125 132
81 127 132 81 124 130
82 125 130 82 122 128
83 124 128 83 121 126
84 122 126 84 120 125
85 121 124 85 119 123
86 119 122 86 118 121
87 118 120 87 117 120
88 117 119 88 116 119
89 116 118 89 115 117
90 115 116 90 115 116
</TABLE>
A-2
<PAGE>
<TABLE>
<CAPTION>
Attained Non-Smoker Attained Smoker
Age Male Female Age Male Female
--- ---- ------ --- ---- ------
<S> <C> <C> <C> <C> <C>
91 114% 115% 91 114% 115%
92 113 114 92 113 114
93 112 112 93 112 112
94 111 111 94 111 111
95 110 110 95 110 110
96 108 108 96 108 108
97 107 107 97 107 107
98 105 105 98 105 105
99+ 104 104 99+ 104 104
</TABLE>
A-3
<PAGE>
CASH VALUE ACCUMULATION TEST
CORRIDOR PERCENTAGES
CHUBB ADVISOR II
(ASSUME EQUAL AGE MALE AND FEMALE NONSMOKERS)
<TABLE>
<CAPTION>
Policy Issue Issue Issue Issue
Year Ages - 35 Ages - 45 Ages - 55 Ages - 65
<S> <C> <C> <C> <C>
0 656% 451% 313% 233%
1 631 443 301 214
2 607 417 290 206
3 584 401 279 199
4 561 386 268 191
5 540 371 258 185
6 519 357 249 178
7 499 343 240 172
8 480 330 231 167
9 462 318 222 162
10 444 306 215 157
11 427 295 207 152
12 411 284 200 148
13 396 273 193 144
14 381 263 187 141
15 366 254 181 137
16 353 244 175 134
17 339 236 169 131
18 327 227 164 129
19 314 219 159 127
20 303 212 155 124
21 292 205 151 122
22 281 198 147 121
23 271 191 143 119
24 261 185 140 118
25 252 179 137 116
26 243 174 134 115
27 234 168 131 114
28 226 163 129 112
29 218 159 126 111
30 211 154 124 110
31 203 150 122 108
32 197 146 121 107
33 190 143 119 105
34 184 140 118 104
35 178 136 116 100
36 173 134 115
37 168 131 114
38 163 128 112
39 158 126 111
40 154 124 110
41 150 122 108
42 146 121 107
43 143 119 105
</TABLE>
A-4
<PAGE>
<TABLE>
<CAPTION>
Policy Issue Issue Issue Issue
Year Ages - 35 Ages - 45 Ages - 55 Ages - 65
<S> <C> <C> <C> <C>
44 139% 118% 104%
45 136 116 100
46 133 115
47 131 114
48 128 112
49 126 111
50 124 110
51 122 108
52 121 107
53 119 105
54 118 104
55 116 100
56 115
57 114
58 112
59 111
60 110
61 108
62 107
63 105
64 104
65 100
</TABLE>
A-5
<PAGE>
APPENDIX B
GUIDELINE PREMIUM TEST
DEATH BENEFIT PERCENTAGES
<TABLE>
<CAPTION>
Age Percentage Age Percentage Age Percentage Age Percentage
--- ---------- --- ---------- --- ---------- --- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
0-40 250% 50 185% 60 130% 70 115%
41 243 51 178 61 128 71 113
42 236 52 171 62 126 72 111
43 229 53 164 63 124 73 109
44 222 54 157 64 122 74 107
45 215 55 150 65 120 75-90 105
46 209 56 146 66 119 91 104
47 203 57 142 67 118 92 103
48 197 58 138 68 117 93 102
49 191 59 134 69 116 94 or older 101
</TABLE>
B-1
<PAGE>
APPENDIX C
ILLUSTRATIONS OF ACCUMULATION VALUES
CASH VALUES AND DEATH BENEFITS
Following are a series of tables that illustrate how the Accumulation Values,
Cash Values and Death Benefits of a Policy change with the investment
performance of the Portfolios. The tables show how the Accumulation Values, Cash
Values and Death Benefits of a Policy issued to an Insured(s) of a given age(s)
and given premium would vary over time if the return on the assets held in each
Portfolio of the Funds were a constant gross annual rate of 0%, 6%, and 12%.
The tables on pages C- through C- illustrate a Chubb Advisor I Policy issued
to a male, age 45, under a standard rate non-smoker underwriting risk
classification. The tables on pages C- through C- illustrate a Chubb Advisor
II Policy issued to a male, age 45, under a standard rate non-smoker
underwriting risk classification and a female, age 45, under a standard rate
non-smoker underwriting risk classification. The Accumulation Values, Cash
Values and Death Benefits would be different from those shown if the returns
averaged 0%, 6%, and 12% over a period of years, but fluctuated above and below
those averages for individual policy years.
The amount of the Accumulation Value exceeds the Cash Value during the first
five policy years due to the Surrender Charge. For policy years six and after,
the Accumulation Value and Cash Value are equal, since the Surrender Charge has
been reduced to zero.
The second column shows the Accumulation Value of the premiums paid at the
stated interest rate. The third and sixth columns illustrate the Accumulation
Values and the fourth and seventh columns illustrate the Cash Values of the
Policy over the designated period. The Accumulation Values shown in the third
column and the Cash Values shown in the fourth column assume the monthly charge
for cost of insurance is based upon the current cost of insurance rates and
assume a monthly deduction adjustment. The current cost of insurance rates,
which may be modified at any time, are based on the sex, issue age, policy year,
and rating class of the Insured(s). The Accumulation Values shown in the sixth
column and the Cash Values shown in the seventh column assume the monthly charge
for cost of insurance is based upon the maximum cost of insurance rates
allowable, which are based on the Commissioner's 1980 Standard Ordinary
Mortality Table. The fifth and eighth columns illustrate the death benefit of a
Policy over the designated period. The illustrations of Death Benefits reflect
the same assumptions as the Accumulation Values and Cash Values. The Death
Benefit values also vary between tables, depending upon which death benefit
option and death benefit qualification test are illustrated .
C-1
<PAGE>
The amounts shown for the Death Benefit, Accumulation Values, and Cash Values
reflect the fact that the net investment return of the Divisions of Separate
Account C is lower than the gross rates of return on the assets in the
Portfolios, as a result of expenses paid by the Portfolios and charges levied
against the Divisions of Separate Account C.
The policy values shown take into account a daily investment advisory fee
equivalent to the maximum annual rate of .72% of the aggregate average daily net
assets of the Portfolios plus an assumed charge of .35% of the aggregate average
daily net assets to cover expenses incurred by the Portfolios. The .72%
investment advisory fee is an average of the individual investment advisory fees
of the six Portfolios. The policy values also take into account a daily
charge to each Division of Separate Account C for the Mortality Risk Charge,
which is equivalent to a charge at an annual rate of .50% of the average net
assets of the Divisions of Separate Account C. After deduction of these amounts,
the illustrated gross investment rates of 0%, 6%, and 12% correspond to
approximate net annual rates of -1.57%, 4.43%, and 10.43%, respectively.
The hypothetical values shown in the tables do not reflect any charges for
Federal income taxes or other taxes other than the DAC tax and the consideration
of premium tax (at 2.5% of premium). However, if, in the future, any additional
charges are made, the gross annual investment rate of return would have to
exceed the stated investment amount to cover the tax charges in order to produce
the Accumulation Values, Cash Values and Death Benefits illustrated.
The tables illustrate the policy values that would result based on
hypothetical investment rates of return if premiums are paid in full at the
beginning of each year, if all net premiums are allocated to Separate Account
C, and if no policy loans have been made. The values would vary from those
shown if the assumed annual premium payments were paid in installments during a
year. The values would also vary if the Policyowner varied the amount or
frequency of premium payments. The tables also assume that the Policyowner has
not requested an increase or decrease in Specified Amount, that no withdrawals
have been made and no Surrender Charges imposed, and that no transfers have
been made and no Transfer Charges imposed.
Upon request, Chubb Life will provide, without charge, a comparable
illustration based upon the proposed Insured's age, sex and rating class, the
Specified Amount requested, the proposed frequency and amount of premium
payments and any available riders requested. Existing Policyowners may request
illustrations based on existing Cash Value at the time of request. Chubb Life
has reserved the right to charge an administrative fee of up to $25 for such
illustrations.
C-2
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUM Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------- --------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 14,319 13,469 1,000,000 12,370 11,520 1,000,000
2 36,593 28,048 27,368 1,000,000 24,325 23,645 1,000,000
3 56,272 41,234 40,724 1,000,000 35,860 35,350 1,000,000
4 76,936 53,979 53,639 1,000,000 46,965 46,625 1,000,000
5 98,633 66,351 66,181 1,000,000 57,617 57,447 1,000,000
6 121,414 78,360 78,360 1,000,000 67,809 67,809 1,000,000
7 145,335 90,025 90,025 1,000,000 77,489 77,489 1,000,000
8 170,452 101,409 101,409 1,000,000 86,609 86,609 1,000,000
9 196,824 112,448 112,448 1,000,000 95,131 95,131 1,000,000
10 224,515 123,057 123,057 1,000,000 102,988 102,988 1,000,000
11 253,591 133,163 133,163 1,000,000 110,137 110,137 1,000,000
12 284,121 142,526 142,526 1,000,000 116,524 116,524 1,000,000
13 316,177 151,110 151,110 1,000,000 122,121 122,121 1,000,000
14 349,836 158,986 158,986 1,000,000 126,883 126,883 1,000,000
15 385,177 166,157 166,157 1,000,000 130,719 130,719 1,000,000
16 422,286 173,079 173,079 1,000,000 133,541 133,541 1,000,000
17 461,251 179,193 179,193 1,000,000 135,247 135,247 1,000,000
18 502,163 184,426 184,426 1,000,000 135,690 135,690 1,000,000
19 545,121 188,707 188,707 1,000,000 134,694 134,694 1,000,000
20 590,227 191,957 191,957 1,000,000 132,066 132,066 1,000,000
25 851,929 188,733 188,733 1,000,000 87,734 87,734 1,000,000
30 1,185,933 136,635 136,635 1,000,000 0 0 0
35 0 0 0 0 0 0 0
40 0 0 0 0 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
__________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-3
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------- -------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 14,319 13,469 1,000,000 12,370 11,520 1,000,000
2 36,593 28,048 27,368 1,000,000 24,325 23,645 1,000,000
3 56,272 41,234 40,724 1,000,000 35,860 35,350 1,000,000
4 76,936 53,979 53,639 1,000,000 46,965 46,625 1,000,000
5 98,633 66,351 66,181 1,000,000 57,617 57,447 1,000,000
6 121,414 78,360 78,360 1,000,000 67,809 67,809 1,000,000
7 145,335 90,025 90,025 1,000,000 77,489 77,489 1,000,000
8 170,452 101,409 101,409 1,000,000 86,609 86,609 1,000,000
9 196,824 112,448 112,448 1,000,000 95,131 95,131 1,000,000
10 224,515 123,057 123,057 1,000,000 102,988 102,988 1,000,000
11 253,591 133,163 133,163 1,000,000 110,137 110,137 1,000,000
12 284,121 142,526 142,526 1,000,000 116,524 116,524 1,000,000
13 316,177 151,110 151,110 1,000,000 122,121 122,121 1,000,000
14 349,836 158,986 158,986 1,000,000 126,883 126,883 1,000,000
15 385,177 166,157 166,157 1,000,000 130,719 130,719 1,000,000
16 422,286 173,079 173,079 1,000,000 133,541 133,541 1,000,000
17 461,251 179,193 179,193 1,000,000 135,247 135,247 1,000,000
18 502,163 184,426 184,426 1,000,000 135,690 135,690 1,000,000
19 545,121 188,707 188,707 1,000,000 134,694 134,694 1,000,000
20 590,227 191,957 191,957 1,000,000 132,066 132,066 1,000,000
25 851,929 188,733 188,733 1,000,000 87,734 87,734 0
30 1,185,933 136,635 136,635 1,000,000 0 0 0
35 0 0 0 0 0 0 0
40 0 0 0 0 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
__________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-4
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
------------------------------------- --------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 15,229 14,379 1,000,000 13,217 12,367 1,000,000
2 36,593 30,758 30,078 1,000,000 26,796 26,116 1,000,000
3 56,272 46,642 46,132 1,000,000 40,745 40,235 1,000,000
4 76,936 62,997 62,657 1,000,000 55,069 54,729 1,000,000
5 98,633 79,910 79,740 1,000,000 69,758 69,588 1,000,000
6 121,414 97,415 97,415 1,000,000 84,821 84,821 1,000,000
7 145,335 115,557 115,557 1,000,000 100,224 100,224 1,000,000
8 170,452 134,428 134,428 1,000,000 115,936 115,936 1,000,000
9 196,824 153,998 153,998 1,000,000 131,933 131,933 1,000,000
10 224,515 174,217 174,217 1,000,000 148,172 148,172 1,000,000
11 253,591 195,047 195,047 1,000,000 164,626 164,626 1,000,000
12 284,121 216,297 216,297 1,000,000 181,266 181,266 1,000,000
13 316,177 238,030 238,030 1,000,000 198,086 198,086 1,000,000
14 349,836 260,376 260,376 1,000,000 215,071 215,071 1,000,000
15 385,177 283,388 283,388 1,000,000 232,229 232,229 1,000,000
16 422,286 307,525 307,525 1,000,000 249,522 249,522 1,000,000
17 461,251 332,380 332,380 1,000,000 266,905 266,905 1,000,000
18 502,163 357,968 357,968 1,000,000 284,296 284,296 1,000,000
19 545,121 384,318 384,318 1,000,000 301,598 301,598 1,000,000
20 590,227 411,465 411,465 1,000,000 318,713 318,713 1,000,000
25 851,929 560,904 560,904 1,000,000 399,003 399,003 1,000,000
30 1,185,933 743,216 743,216 1,000,000 457,613 457,613 1,000,000
35 1,612,217 993,919 993,919 1,043,615 (3) 455,454 455,454 1,000,000
40 2,156,276 1,322,821 1,322,821 1,388,963 (3) 285,043 285,043 1,000,000
45 2,850,648 1,715,142 1,715,142 1,800,899 (3) 0 0 0
50 3,736,862 2,210,976 2,210,976 2,233,086 (3) 0 0 0
55 4,867,920 2,887,000 2,887,000 2,887,000 (3) 0 0 0
</TABLE>
__________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-5
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------- -------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 15,229 14,379 1,000,000 13,217 12,367 1,000,000
2 36,593 30,758 30,078 1,000,000 26,796 26,116 1,000,000
3 56,272 46,642 46,132 1,000,000 40,745 40,235 1,000,000
4 76,936 62,997 62,657 1,000,000 55,069 54,729 1,000,000
5 98,633 79,910 79,740 1,000,000 69,758 69,588 1,000,000
6 121,414 97,415 97,415 1,000,000 84,821 84,821 1,000,000
7 145,335 115,557 115,557 1,000,000 100,224 100,224 1,000,000
8 170,452 134,428 134,428 1,000,000 115,936 115,936 1,000,000
9 196,824 153,998 153,998 1,000,000 131,933 131,933 1,000,000
10 224,515 174,217 174,217 1,000,000 148,172 148,172 1,000,000
11 253,591 195,047 195,047 1,000,000 164,626 164,626 1,000,000
12 284,121 216,297 216,297 1,000,000 181,266 181,266 1,000,000
13 316,177 238,030 238,030 1,000,000 198,086 198,086 1,000,000
14 349,836 260,376 260,376 1,000,000 215,071 215,071 1,000,000
15 385,177 283,388 283,388 1,000,000 232,229 232,229 1,000,000
16 422,286 307,525 307,525 1,000,000 249,522 249,522 1,000,000
17 461,251 332,380 332,380 1,000,000 266,905 266,905 1,000,000
18 502,163 357,968 357,968 1,000,000 284,296 284,296 1,000,000
19 545,121 384,318 384,318 1,000,000 301,598 301,598 1,000,000
20 590,227 411,465 411,465 1,000,000 318,713 318,713 1,000,000
25 851,929 560,904 560,904 1,000,000 399,003 399,003 1,000,000
30 1,185,933 741,842 741,842 1,053,416 (3) 457,613 457,613 1,000,000
35 1,612,217 949,094 949,094 1,243,314 (3) 455,454 455,454 1,000,000
40 2,156,276 1,175,777 1,175,777 1,434,448 (3) 285,043 285,043 1,000,000
45 2,850,648 1,421,454 1,421,454 1,648,886 (3) 0 0 0
50 3,736,862 1,692,567 1,692,567 1,878,749 (3) 0 0 0
55 4,867,920 2,069,670 2,069,670 2,152,457 (3) 0 0 0
</TABLE>
__________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits."
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-6
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------- ----------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 16,139 15,289 1,000,000 14,065 13,215 1,000,000
2 36,593 33,578 32,898 1,000,000 29,373 28,693 1,000,000
3 56,272 52,499 51,989 1,000,000 46,047 45,537 1,000,000
4 76,936 73,163 72,823 1,000,000 64,225 63,885 1,000,000
5 98,633 95,826 95,656 1,000,000 84,045 83,875 1,000,000
6 121,414 120,713 120,713 1,000,000 105,682 105,682 1,000,000
7 145,335 148,083 148,083 1,000,000 129,286 129,286 1,000,000
8 170,452 178,269 178,269 1,000,000 155,036 155,036 1,000,000
9 196,824 211,515 211,515 1,000,000 183,143 183,143 1,000,000
10 224,515 248,127 248,127 1,000,000 213,828 213,828 1,000,000
11 253,591 288,528 288,528 1,000,000 247,426 247,426 1,000,000
12 284,121 332,969 332,969 1,000,000 284,339 284,339 1,000,000
13 316,177 381,932 381,932 1,000,000 324,988 324,988 1,000,000
14 349,836 436,057 436,057 1,000,000 369,841 369,841 1,000,000
15 385,177 496,017 496,017 1,000,000 419,417 419,417 1,000,000
16 422,286 562,853 562,853 1,000,000 474,330 474,330 1,000,000
17 461,251 637,111 637,111 1,000,000 535,303 535,303 1,000,000
18 502,163 719,774 719,774 1,000,000 603,173 603,173 1,000,000
19 545,121 811,998 811,998 1,006,877 (3) 678,943 678,943 1,000,000
20 590,227 914,441 914,441 1,115,618 (3) 763,829 763,829 1,000,000
25 851,929 1,611,144 1,611,144 1,868,927 (3) 1,351,171 1,351,171 1,567,358 (3)
30 1,185,933 2,760,514 2,760,514 2,953,750 (3) 2,314,713 2,314,713 2,476,743 (3)
35 1,612,217 4,673,165 4,673,165 4,906,824 (3) 3,913,145 3,913,145 4,108,803 (3)
40 2,156,276 7,786,513 7,786,513 8,175,839 (3) 6,481,727 6,481,727 6,805,813 (3)
45 2,850,648 12,775,662 12,775,662 13,414,445 (3) 10,514,204 10,514,204 11,039,914 (3)
50 3,736,862 21,011,783 21,011,783 21,221,901 (3) 17,147,493 17,147,493 17,318,968 (3)
55 4,867,920 35,273,678 35,273,678 35,273,678 (3) 28,805,501 28,805,501 28,805,501 (3)
</TABLE>
__________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-7
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Mon-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
------------------------------------- --------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 16,139 15,289 1,000,000 14,065 13,215 1,000,000
2 36,593 33,578 32,898 1,000,000 29,373 28,693 1,000,000
3 56,272 52,499 51,989 1,000,000 46,047 45,537 1,000,000
4 76,936 73,163 72,823 1,000,000 64,225 63,885 1,000,000
5 98,633 95,826 95,656 1,000,000 84,045 83,875 1,000,000
6 121,414 120,713 120,713 1,000,000 105,682 105,682 1,000,000
7 145,335 148,083 148,083 1,000,000 129,286 129,286 1,000,000
8 170,452 178,269 178,269 1,000,000 155,036 155,036 1,000,000
9 196,824 211,515 211,515 1,000,000 183,143 183,143 1,000,000
10 224,515 248,127 248,127 1,000,000 213,828 213,828 1,000,000
11 253,591 288,528 288,528 1,000,000 247,426 247,426 1,000,000
12 284,121 332,969 332,969 1,000,000 284,339 284,339 1,000,000
13 316,177 381,932 381,932 1,000,000 324,988 324,988 1,000,000
14 349,836 436,057 436,057 1,000,000 369,841 369,841 1,000,000
15 385,177 496,015 496,015 1,011,870 (3) 419,417 419,417 1,000,000
16 422,286 562,404 562,404 1,113,560 (3) 474,330 474,330 1,000,000
17 461,251 635,170 635,170 1,225,879 (3) 535,236 535,236 1,033,005 (3)
18 502,163 714,862 714,862 1,343,941 (3) 601,862 601,862 1,131,500 (3)
19 545,121 802,097 802,097 1,467,838 (3) 674,313 674,313 1,233,993 (3)
20 590,227 897,553 897,553 1,597,644 (3) 753,036 753,036 1,340,404 (3)
25 851,929 1,524,126 1,524,126 2,408,120 (3) 1,257,936 1,257,936 1,987,539 (3)
30 1,185,933 2,485,235 2,485,235 3,529,033 (3) 1,999,871 1,999,871 2,839,817 (3)
35 1,612,217 3,934,139 3,934,139 5,153,722 (3) 3,054,998 3,054,998 4,002,048 (3)
40 2,156,276 6,088,015 6,088,015 7,427,379 (3) 4,540,285 4,540,285 5,539,148 (3)
45 2,850,648 9,262,796 9,262,796 10,744,843 (3) 6,598,139 6,598,139 7,653,841 (3)
50 3,736,862 13,965,042 13,965,042 15,501,196 (3) 9,514,504 9,514,504 10,561,100 (3)
55 4,867,920 21,742,231 21,742,231 22,611,920 (3) 13,664,894 13,664,894 14,211,940 (3)
</TABLE>
__________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
C-8
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Guideline Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
---------------------------------------- ---------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 14,301 13,451 1,014,301 12,327 11,477 1,012,327
2 36,593 27,983 27,303 1,027,983 24,194 23,514 1,024,194
3 56,272 41,084 40,574 1,041,084 35,589 35,079 1,035,589
4 76,936 53,704 53,364 1,053,704 46,500 46,160 1,046,500
5 98,633 65,909 65,739 1,065,909 56,893 56,723 1,056,893
6 121,414 77,706 77,706 1,077,706 66,759 66,759 1,066,759
7 145,335 89,110 89,110 1,089,110 76,036 76,036 1,076,036
8 170,452 100,187 100,187 1,100,187 84,664 84,664 1,084,664
9 196,824 110,863 110,863 1,110,863 92,594 92,594 1,092,594
10 224,515 121,036 121,036 1,121,036 99,749 99,749 1,099,749
11 253,591 130,616 130,616 1,130,616 106,071 106,071 1,106,071
12 284,121 139,315 139,315 1,139,315 111,496 111,496 1,111,496
13 316,177 147,079 147,079 1,147,079 115,986 115,986 1,115,986
14 349,836 153,982 153,982 1,153,982 119,489 119,489 1,119,489
15 385,177 160,016 160,016 1,160,016 121,901 121,901 1,121,901
16 422,286 165,730 165,730 1,165,730 123,122 123,122 1,123,122
17 461,251 170,436 170,436 1,170,436 123,040 123,040 1,123,040
18 502,163 174,043 174,043 1,174,043 121,500 121,500 1,121,500
19 545,121 176,458 176,458 1,176,458 118,316 118,316 1,118,316
20 590,227 177,584 177,584 1,177,584 113,298 113,298 1,113,298
25 851,929 159,310 159,310 1,159,310 55,342 55,342 1,055,342
30 1,185,933 85,663 85,663 1,085,663 0 0 0
35 0 0 0 0 0 0 0
40 0 0 0 0 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
___________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-9
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------- ---------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 14,301 13,451 1,014,301 12,327 11,477 1,012,327
2 36,593 27,983 27,303 1,027,983 24,194 23,514 1,024,194
3 56,272 41,084 40,574 1,041,084 35,589 35,079 1,035,589
4 76,936 53,704 53,364 1,053,704 46,500 46,160 1,046,500
5 98,633 65,909 65,739 1,065,909 56,893 56,723 1,056,893
6 121,414 77,706 77,706 1,077,706 66,759 66,759 1,066,759
7 145,335 89,110 89,110 1,089,110 76,036 76,036 1,076,036
8 170,452 100,187 100,187 1,100,187 84,664 84,664 1,084,664
9 196,824 110,863 110,863 1,110,863 92,594 92,594 1,092,594
10 224,515 121,036 121,036 1,121,036 99,749 99,749 1,099,749
11 253,591 130,616 130,616 1,130,616 106,071 106,071 1,106,071
12 284,121 139,315 139,315 1,139,315 111,496 111,496 1,111,496
13 316,177 147,079 147,079 1,147,079 115,986 115,986 1,115,986
14 349,836 153,982 153,982 1,153,982 119,489 119,489 1,119,489
15 385,177 160,016 160,016 1,160,016 121,901 121,901 1,121,901
16 422,286 165,730 165,730 1,165,730 123,122 123,122 1,123,122
17 461,251 170,436 170,436 1,170,436 123,040 123,040 1,123,040
18 502,163 174,043 174,043 1,174,043 121,500 121,500 1,121,500
19 545,121 176,458 176,458 1,176,458 118,316 118,316 1,118,316
20 590,227 177,584 177,584 1,177,584 113,298 113,298 1,113,298
25 851,929 159,310 159,310 1,159,310 55,342 55,342 1,055,342
30 1,185,933 85,663 85,663 1,085,663 0 0 0
35 0 0 0 0 0 0 0
40 0 0 0 0 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
____________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have to be made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-10
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of REturn: 6%(4.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
----------------------------------- -------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 15,210 14,360 1,015,210 13,172 12,322 1,013,172
2 36,593 30,686 30,006 1,030,686 26,652 25,972 1,026,652
3 56,272 46,470 45,960 1,046,470 40,434 39,924 1,040,434
4 76,936 62,669 62,329 1,062,669 54,510 54,170 1,054,510
5 98,633 79,362 79,192 1,079,36 68,854 68,684 1,068,854
6 121,414 96,570 96,570 1,096,570 83,457 83,457 1,083,457
7 145,335 114,326 114,326 1,114,326 98,259 98,259 1,098,259
8 170,452 132,717 132,717 1,132,717 113,197 113,197 1,113,197
9 196,824 151,688 151,688 1,151,688 128,217 128,217 1,128,217
10 224,515 171,154 171,154 1,171,154 143,230 143,230 1,143,230
11 253,591 191,035 191,035 1,191,035 158,165 158,165 1,158,165
12 284,121 211,042 211,042 1,211,042 172,938 172,938 1,172,938
13 316,177 231,156 231,156 1,231,156 187,489 187,489 1,187,489
14 349,836 251,479 251,479 1,251,479 201,738 201,738 1,201,738
15 385,177 272,003 272,003 1,272,003 215,555 215,555 1,215,555
16 422,286 293,286 293,286 1,293,286 228,850 228,850 1,228,850
17 461,251 314,653 314,653 1,314,653 241,466 241,466 1,241,466
18 502,163 335,996 335,996 1,335,996 253,185 253,185 1,253,185
19 545,121 357,201 357,201 1,357,201 263,751 263,751 1,263,751
20 590,227 378,141 378,141 1,378,141 272,884 272,884 1,272,884
25 851,929 472,645 472,645 1,472,645 287,539 287,539 1,287,539
30 1,185,933 526,600 526,600 1,526,600 210,442 210,442 1,210,442
35 1,612,217 490,713 490,713 1,490,713 0 0 0
40 2,156,276 281,070 281,070 1,281,070 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
____________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-11
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
------------------------------------- --------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 15,210 14,360 1,015,210 13,172 12,322 1,013,172
2 36,593 30,686 30,006 1,030,686 26,652 25,972 1,026,652
3 56,272 46,470 45,960 1,046,470 40,434 39,924 1,040,434
4 76,936 62,669 62,329 1,062,669 54,510 54,170 1,054,510
5 98,633 79,362 79,192 1,079,362 68,854 68,684 1,068,854
6 121,414 96,570 96,570 1,096,570 83,457 83,457 1,083,457
7 145,335 114,326 114,326 1,114,326 98,259 98,259 1,098,259
8 170,452 132,717 132,717 1,132,717 113,197 113,197 1,113,197
9 196,824 151,688 151,688 1,151,688 128,217 128,217 1,128,217
10 224,515 171,154 171,154 1,171,154 143,230 143,230 1,143,230
11 253,591 191,035 191,035 1,191,035 158,165 158,165 1,158,165
12 284,121 211,042 211,042 1,211,042 172,938 172,938 1,172,938
13 316,177 231,156 231,156 1,231,156 187,489 187,489 1,187,489
14 349,836 251,479 251,479 1,251,479 201,738 201,738 1,201,738
15 385,177 272,003 272,003 1,272,003 215,555 215,555 1,215,555
16 422,286 293,286 293,286 1,293,286 228,850 228,850 1,228,850
17 461,251 314,653 314,653 1,314,653 241,466 241,466 1,241,466
18 502,163 335,996 335,996 1,335,996 253,185 253,185 1,253,185
19 545,121 357,201 357,201 1,357,201 263,751 263,751 1,263,751
20 590,227 378,141 378,141 1,378,141 272,884 272,884 1,272,884
25 851,929 472,645 472,645 1,472,645 287,539 287,539 1,287,539
30 1,185,933 526,600 526,600 1,526,600 210,442 210,442 1,210,442
35 1,612,217 490,713 490,713 1,490,713 0 0 0
40 2,156,276 281,070 281,070 1,281,070 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
____________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-12
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43% net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
--------------------------------------- ---------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 16,119 15,269 1,016,119 14,018 13,168 1,014,018
2 36,593 33,499 32,819 1,033,499 29,214 28,534 1,029,214
3 56,272 52,303 51,793 1,052,303 45,690 45,180 1,045,690
4 76,936 72,775 72,435 1,072,775 63,560 63,220 1,063,560
5 98,633 95,150 94,980 1,095,150 82,926 82,756 1,082,926
6 121,414 119,629 119,629 1,119,629 103,924 103,942 1,103,924
7 145,335 146,440 146,440 1,146,440 126,649 126,649 1,126,649
8 170,452 175,890 175,890 1,175,890 151,210 151,210 1,151,210
9 196,824 208,171 208,171 1,208,171 177,735 177,735 1,177,735
10 224,515 243,495 243,495 1,243,495 206,333 206,333 1,206,333
11 253,591 282,191 282,191 1,282,191 237,174 237,174 1,237,174
12 284,121 324,310 324,310 1,324,310 270,512 270,512 1,270,512
13 316,177 370,151 370,151 1,370,151 306,567 306,567 1,306,567
14 349,836 420,179 420,179 1,420,179 345,558 345,558 1,345,558
15 385,177 474,830 474,830 1,474,830 387,681 387,681 1,387,681
16 422,286 535,172 535,172 1,535,172 433,149 433,149 1,433,149
17 461,251 601,088 601,088 1,601,088 482,189 482,189 1,482,189
18 502,163 673,069 673,069 1,673,069 535,000 535,000 1,535,000
19 545,121 751,657 751,657 1,751,657 591,773 591,773 1,591,773
20 590,227 837,446 837,446 1,837,446 652,707 652,707 1,652,707
25 851,929 1,398,697 1,398,697 2,398,697 1,029,860 1,029,860 2,029,860
30 1,185,933 2,263,045 2,263,045 3,263,045 1,551,982 1,551,982 2,551,982
35 1,612,217 3,591,534 3,591,534 4,591,534 2,243,675 2,243,675 3,243,675
40 2,156,276 5,630,336 5,630,336 6,630,336 3,137,529 3,137,529 4,137,529
45 2,850,648 8,772,754 8,772,754 9,772,754 4,232,718 4,232,718 5,232,718
50 3,736,862 13,678,424 13,678,424 14,678,424 5,574,181 5,574,181 6,574,181
55 4,867,920 21,502,508 21,502,508 22,502,508 5,993,013 5,993,013 6,993,013
</TABLE>
____________________
(1) Assumes a $17,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-13
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor I Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43%net)
$1,000,000 Initial Specified Amount Assumed Annual Premium (1): $17,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
--------------------------------------- ---------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 17,850 16,119 15,269 1,016,119 14,018 13,168 1,014,018
2 36,593 33,499 32,819 1,033,499 29,214 28,534 1,029,214
3 56,272 52,303 51,793 1,052,303 45,690 45,180 1,045,690
4 76,936 72,775 72,435 1,072,775 63,560 63,220 1,063,560
5 98,633 95,150 94,980 1,095,150 82,926 82,756 1,082,926
6 121,414 119,629 119,629 1,119,629 103,924 103,924 1,103,924
7 145,335 146,440 146,440 1,146,440 126,649 126,649 1,126,649
8 170,452 175,890 175,890 1,175,890 151,210 151,210 1,151,210
9 196,824 208,171 208,171 1,208,171 177,735 177,735 1,177,735
10 224,515 243,495 243,495 1,243,495 206,333 206,333 1,206,333
11 253,591 282,191 282,191 1,282,191 237,174 237,174 1,237,174
12 284,121 324,310 324,310 1,324,310 270,512 270,512 1,270,512
13 316,177 370,151 370,151 1,370,151 306,567 306,567 1,306,567
14 349,836 420,179 420,179 1,420,179 345,558 345,558 1,345,558
15 385,177 474,830 474,830 1,474,830 387,681 387,681 1,387,681
16 422,286 535,172 535,172 1,535,172 433,149 433,149 1,433,149
17 461,251 601,088 601,088 1,601,088 482,189 482,189 1,482,189
18 502,163 673,069 673,069 1,673,069 535,000 535,000 1,535,000
19 545,121 751,657 751,657 1,751,657 591,773 591,773 1,591,773
20 590,227 837,446 837,446 1,837,446 652,707 652,707 1,652,707
25 851,929 1,398,697 1,398,697 2,398,697 1,029,860 1,029,860 2,029,860
30 1,185,933 2,263,045 2,263,045 3,263,045 1,551,982 1,551,982 2,551,982
35 1,612,217 3,585,309 3,585,309 4,696,755 (3) 2,243,675 2,243,675 3,243,675
40 2,156,276 5,556,902 5,556,902 6,779,420 (3) 3,137,529 3,137,529 4,137,529
45 2,850,648 8,463,245 8,463,245 9,817,364 (3) 4,232,718 4,232,718 5,232,718
50 3,736,862 12,768,059 12,768,059 14,172,546 (3) 5,574,181 5,574,181 6,574,181
55 4,867,920 19,774,796 19,774,796 20,774,796 5,993,013 5,993,013 6,993,013
</TABLE>
____________________
(1) Assumes a $17,000 premium is paid at the begining of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawls have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. see "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-14
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57%net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
--------------------------------------- ----------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 23,845 22,545 2,000,000 23,845 22,545 2,000,000
2 55,965 47,272 46,232 2,000,000 47,272 46,232 2,000,000
3 86,063 70,279 69,499 2,000,000 70,279 69,499 2,000,000
4 117,666 92,864 92,344 2,000,000 92,864 92,344 2,000,000
5 150,850 115,022 114,762 2,000,000 115,022 114,762 2,000,000
6 185,692 136,747 136,747 2,000,000 136,747 136,747 2,000,000
7 222,277 158,028 158,028 2,000,000 158,028 158,028 2,000,000
8 260,691 178,851 178,851 2,000,000 178,851 178,851 2,000,000
9 301,025 199,199 199,199 2,000,000 199,199 199,199 2,000,000
10 343,376 219,049 219,049 2,000,000 219,049 219,049 2,000,000
11 387,845 238,378 238,378 2,000,000 238,378 238,378 2,000,000
12 434,538 257,233 257,233 2,000,000 257,233 257,233 2,000,000
13 483,564 275,582 275,582 2,000,000 275,582 275,582 2,000,000
14 535,043 293,393 293,393 2,000,000 293,393 293,393 2,000,000
15 589,095 310,618 310,618 2,000,000 310,618 310,618 2,000,000
16 645,850 328,201 328,201 2,000,000 327,196 327,196 2,000,000
17 705,442 345,310 345,310 2,000,000 343,052 343,052 2,000,000
18 768,014 361,887 361,887 2,000,000 358,078 358,078 2,000,000
19 833,715 377,864 377,864 2,000,000 372,133 372,133 2,000,000
20 902,701 393,162 393,162 2,000,000 385,052 385,052 2,000,000
25 1,302,950 457,161 457,161 2,000,000 426,414 426,414 2,000,000
30 1,813,781 485,805 485,805 2,000,000 399,505 399,505 2,000,000
35 2,465,744 435,742 435,742 2,000,000 202,856 202,856 2,000,000
40 3,297,834 194,360 194,360 2,000,000 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
____________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-15
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57%net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
---------------------------------- ---------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- --------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 23,845 22,545 2,000,000 23,854 22,545 2,000,000
2 55,965 47,272 46,232 2,000,000 47,272 46,232 2,000,000
3 86,063 70,279 69,499 2,000,000 70,279 69,499 2,000,000
4 117,666 92,864 92,344 2,000,000 92,864 92,344 2,000,000
5 150,850 115,022 114,762 2,000,000 115,022 114,762 2,000,000
6 185,692 136,747 136,747 2,000,000 136,747 136,747 2,000,000
7 222,277 158,028 158,028 2,000,000 158,028 158,028 2,000,000
8 260,691 178,851 178,851 2,000,000 178,851 178,851 2,000,000
9 301,025 199,199 199,199 2,000,000 199,199 199,199 2,000,000
10 343,376 219,049 219,049 2,000,000 219,049 219,049 2,000,000
11 387,845 238,378 238,378 2,000,000 238,378 238,378 2,000,000
12 434,538 257,233 257,233 2,000,000 257,233 257,233 2,000,000
13 483,564 275,582 275,582 2,000,000 275,582 257,582 2,000,000
14 535,043 293,393 293,393 2,000,000 293,393 293,393 2,000,000
15 589,095 310,618 310,618 2,000,000 310,618 310,618 2,000,000
16 645,850 328,201 328,201 2,000,000 327,196 327,196 2,000,000
17 705,442 345,310 345,310 2,000,000 343,052 343,052 2,000,000
18 768,014 361,887 361,887 2,000,000 358,078 358,078 2,000,000
19 833,715 377,864 377,864 2,000,000 372,133 372,133 2,000,000
20 902,701 393,162 393,162 2,000,000 385,052 385,052 2,000,000
25 1,302,905 457,161 457,161 2,000,000 426,414 426,414 2,000,000
30 1,813,781 485,805 485,805 2,000,000 399,505 399,505 2,000,000
35 2,465,744 435,742 435,742 2,000,000 202,856 202,856 2,000,000
40 3,297,834 194,360 194,360 2,000,000 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
____________________
(1) Assumes a $26,000 premium is paid at the begining of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawls have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-16
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------- ----------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 25,299 23,999 2,000,000 25,299 23,999 2,000,000
2 55,965 51,674 50,634 2,000,000 51,674 50,634 2,000,000
3 86,063 79,165 78,385 2,000,000 79,165 78,385 2,000,000
4 117,666 107,810 107,290 2,000,000 107,810 107,290 2,000,000
5 150,850 137,652 137,392 2,000,000 137,652 137,392 2,000,000
6 185,692 168,730 168,730 2,000,000 168,730 168,730 2,000,000
7 222,277 201,083 201,083 2,000,000 201,083 201,083 2,000,000
8 260,691 234,748 234,748 2,000,000 234,748 234,748 2,000,000
9 301,025 269,828 269,828 2,000,000 269,828 269,828 2,000,000
10 343,376 306,436 306,436 2,000,000 306,436 306,436 2,000,000
11 387,845 344,619 344,619 2,000,000 344,619 344,619 2,000,000
12 434,538 384,425 384,425 2,000,000 384,425 384,425 2,000,000
13 483,564 425,906 425,906 2,000,000 425,906 425,906 2,000,000
14 535,043 469,119 469,119 2,000,000 469,119 469,119 2,000,000
15 589,095 514,111 514,111 2,000,000 514,111 514,111 2,000,000
16 645,850 561,829 561,829 2,000,000 560,927 560,927 2,000,000
17 705,442 611,658 611,658 2,000,000 609,604 609,604 2,000,000
18 768,014 663,663 663,663 2,000,000 660,163 660,163 2,000,000
19 833,715 717,909 717,909 2,000,000 712,609 712,609 2,000,000
20 902,701 774,464 774,464 2,000,000 766,945 766,945 2,000,000
25 1,302,950 1,095,678 1,095,678 2,000,000 1,068,410 1,068,410 2,000,000
30 1,813,781 1,492,671 1,492,671 2,000,000 1,427,079 1,427,079 2,000,000
35 2,465,744 2,000,991 2,000,991 2,101,040 (3) 1,878,677 1,878,677 2,000,000
40 3,297,834 2,644,574 2,644,574 2,776,803 (3) 2,472,854 2,472,854 2,596,496 (3)
45 4,359,814 3,421,166 3,421,166 3,592,224 (3) 3,164,860 3,164,860 3,323,103 (3)
50 5,715,200 4,395,342 4,395,342 4,439,295 (3) 4,030,413 4,030,413 4,070,717 (3)
55 7,445,054 5,701,491 5,701,491 5,701,491 (3) 5,239,288 5,239,288 5,239,288 (3)
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-17
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
-------------------------------------------- --------------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFITS(2)
- ---- -------- -------- -------- ----------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 25,299 23,999 2,000,000 25,299 23,999 2,000,000
2 55,965 51,674 50,643 2,000,000 51,674 50,634 2,000,000
3 86,063 79,165 78,385 2,000,000 79,165 78,385 2,000,000
4 117,666 107,810 107,290 2,000,000 107,810 107,290 2,000,000
5 150,850 137,652 137,392 2,000,000 137,652 137,392 2,000,000
6 185,692 168,730 168,730 2,000,000 168,730 168,730 2,000,000
7 222,277 201,083 201,083 2,000,000 201,083 201,083 2,000,000
8 260,691 234,748 234,748 2,000,000 234,748 234,748 2,000,000
9 301,025 269,828 269,828 2,000,000 269,828 269,828 2,000,000
10 343,376 306,436 306,436 2,000,000 306,436 306,436 2,000,000
11 387,845 344,619 344,619 2,000,000 344,619 344,619 2,000,000
12 434,538 384,425 384,425 2,000,000 384,425 384,425 2,000,000
13 483,564 425,906 425,906 2,000,000 425,906 425,906 2,000,000
14 535,043 469,119 469,119 2,000,000 469,119 469,119 2,000,000
15 589,095 514,111 514,111 2,000,000 514,111 514,111 2,000,000
16 645,850 561,829 561,829 2,000,000 560,927 560,927 2,000,000
17 705,442 611,658 611,658 2,000,000 609,604 609,604 2,000,000
18 768,014 663,663 663,663 2,000,000 660,163 660,163 2,000,000
19 833,715 717,909 717,909 2,000,000 712,609 712,609 2,000,000
20 902,701 774,464 774,464 2,000,000 766,945 766,945 2,000,000
25 1,302,950 1,095,663 1,095,663 2,026,977 (3) 1,068,410 1,068,410 2,000,000
30 1,813,781 1,484,403 1,484,403 2,360,201 (3) 1,417,316 1,417,316 2,253,532 (3)
35 2,465,744 1,935,732 1,935,732 2,710,025 (3) 1,786,666 1,786,666 2,501,332 (3)
40 3,297,834 2,437,074 2,437,074 3,070,714 (3) 2,154,572 2,154,572 2,714,761 (3)
45 4,359,814 2,976,367 2,976,367 3,512,113 (3) 2,495,840 2,495,840 2,945,092 (3)
50 5,715,200 3,578,953 3,578,953 3,972,638 (3) 2,844,133 2,844,133 3,156,987 (3)
55 7,445,054 4,388,201 4,388,201 4,563,729 (3) 3,203,522 3,203,522 3,331,663 (3)
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increases is due to adjustments by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-18
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
------------------------------------------ --------------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ----------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 26,753 25,453 2,000,000 26,753 25,453 2,000,000
2 55,965 56,250 55,210 2,000,000 56,250 55,210 2,000,000
3 86,063 88,770 87,990 2,000,000 88,770 87,990 2,000,000
4 117,666 124,617 124,097 2,000,000 124,617 124,097 2,000,000
5 150,850 164,129 163,869 2,000,000 164,129 163,869 2,000,000
6 185,692 207,677 207,677 2,000,000 207,677 207,677 2,000,000
7 222,277 255,667 255,667 2,000,000 255,667 255,667 2,000,000
8 260,691 308,704 308,704 2,000,000 308,704 308,704 2,000,000
9 301,025 367,363 367,363 2,000,000 367,363 367,363 2,000,000
10 343,376 432,236 432,236 2,000,000 432,236 432,236 2,000,000
11 387,845 503,981 503,981 2,000,000 503,981 503,981 2,000,000
12 434,538 583,333 583,333 2,000,000 583,333 583,333 2,000,000
13 483,564 671,112 671,112 2,000,000 671,112 671,112 2,000,000
14 535,043 768,239 768,239 2,000,000 768,239 768,239 2,000,000
15 589,095 875,739 875,739 2,000,000 875,739 875,739 2,000,000
16 645,850 995,432 995,432 2,000,000 994,755 994,755 2,000,000
17 705,442 1,128,083 1,128,083 2,000,000 1,126,575 1,126,575 2,000,000
18 768,014 1,275,133 1,275,133 2,000,000 1,272,647 1,272,647 2,000,000
19 833,715 1,438,198 1,438,198 2,000,000 1,434,617 1,434,617 2,000,000
20 902,701 1,619,113 1,619,113 2,000,000 1,614,381 1,614,381 2,000,000
25 1,302,950 2,862,362 2,862,362 3,320,339 (3) 2,847,282 2,847,282 3,302,847 (3)
30 1,813,781 4,932,632 4,932,632 5,277,917 (3) 4,890,204 4,890,204 5,232,519 (3)
35 2,465,744 8,381,689 8,381,689 8,800,773 (3) 8,278,723 8,278,723 8,692,659 (3)
40 3,297,834 14,056,990 14,056,990 14,759,839 (3) 13,782,111 13,782,111 14,471,216 (3)
45 4,359,814 23,252,002 23,252,002 24,414,602 (3) 22,487,947 22,487,947 23,612,344 (3)
50 5,715,200 38,427,397 38,427,397 38,811,671 (3) 36,737,613 36,737,613 37,104,989 (3)
55 7,445,054 64,481,585 64,481,585 64,481,585 (3) 61,653,169 61,653,169 61,653,169 (3)
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-19
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option I; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
------------------------------------------ --------------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 26,753 25,453 2,000,000 26,753 25,453 2,000,000
2 55,965 56,250 55,210 2,000,000 56,250 55,210 2,000,000
3 86,063 88,770 87,990 2,000,000 88,770 87,990 2,000,000
4 117,666 124,617 124,097 2,000,000 124,617 124,097 2,000,000
5 150,850 164,129 163,869 2,000,000 164,129 163,869 2,000,000
6 185,692 207,677 207,677 2,000,000 207,677 207,677 2,000,000
7 222,277 255,667 255,667 2,000,000 255,667 255,667 2,000,000
8 260,691 308,704 308,704 2,000,000 308,704 308,704 2,000,000
9 301,025 367,363 367,363 2,000,000 367,363 367,363 2,000,000
10 343,376 432,236 432,236 2,000,000 432,236 432,236 2,000,000
11 387,845 503,981 503,981 2,000,000 503,981 503,981 2,000,000
12 434,538 583,333 583,333 2,000,000 583,333 583,333 2,000,000
13 483,564 671,112 671,112 2,000,000 671,112 671,112 2,000,000
14 535,043 768,217 768,217 2,097,232 (3) 768,217 768,217 2,097,232 (3)
15 589,095 875,456 875,456 2,302,449 (3) 875,456 875,456 2,302,449 (3)
16 645,850 994,681 994,681 2,526,490 (3) 993,757 993,757 2,524,143 (3)
17 705,442 1,126,464 1,126,464 2,748,573 (3) 1,124,202 1,124,202 2,743,054 (3)
18 768,014 1,272,042 1,272,042 3,002,018 (3) 1,267,877 1,267,877 2,992,189 (3)
19 833,715 1,432,801 1,432,801 3,252,458 (3) 1,426,000 1,426,000 3,237,021 (3)
20 902,701 1,610,216 1,610,216 3,526,374 (3) 1,599,808 1,599,808 3,503,579 (3)
25 1,302,950 2,810,509 2,810,509 5,199,441 (3) 2,754,828 2,754,828 5,096,431 (3)
30 1,813,781 4,741,214 4,741,214 7,538,530 (3) 4,541,445 4,541,445 7,220,897 (3)
35 2,465,744 7,773,350 7,773,350 10,882,690 (3) 7,175,286 7,175,286 10,045,401 (3)
40 3,297,834 12,398,778 12,398,778 15,622,460 (3) 10,914,576 10,914,576 13,752,366 (3)
45 4,359,814 19,298,808 19,298,808 22,772,593 (3) 16,021,458 16,021,458 18,905,320 (3)
50 5,715,200 29,715,602 29,715,602 32,984,318 (3) 23,213,160 23,213,160 25,766,608 (3)
55 7,445,054 46,856,204 46,856,204 48,730,452 (3) 33,325,613 33,325,613 34,658,637 (3)
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-20
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<CAPTION>
Death Benefit Option II; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 0% (-1.57% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
---------------------------------------- -----------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 23,845 22,545 2,023,845 23,845 22,545 2,023,845
2 55,965 47,270 46,230 2,047,270 47,270 46,230 2,047,270
3 86,063 70,274 69,494 2,070,274 70,274 69,494 2,070,274
4 117,666 92,850 92,330 2,092,850 92,850 92,330 2,092,850
5 150,850 114,993 114,733 2,114,993 114,993 114,733 2,114,993
6 185,692 136,694 136,694 2,136,694 136,694 136,694 2,136,694
7 222,277 157,938 157,938 2,157,938 157,938 157,938 2,157,938
8 260,691 178,708 178,708 2,178,708 178,708 178,708 2,178,708
9 301,025 198,979 198,979 2,198,979 198,979 198,979 2,198,979
10 343,376 218,724 218,724 2,218,724 218,724 218,724 2,218,724
11 387,845 237,908 237,908 2,237,908 237,908 237,908 2,237,908
12 434,538 256,568 256,568 2,256,568 256,568 256,568 2,256,568
13 483,564 274,663 274,663 2,274,663 274,663 274,663 2,274,663
14 535,043 292,146 292,146 2,292,146 292,146 292,146 2,292,146
15 589,095 308,953 308,953 2,308,953 308,953 308,953 2,308,953
16 645,850 326,207 326,207 2,326,207 325,004 325,004 2,325,004
17 705,442 342,910 342,910 2,342,910 340,195 340,195 2,340,195
18 768,014 358,987 358,987 2,358,987 354,383 354,383 2,354,383
19 833,715 374,345 374,345 2,374,345 367,383 367,383 2,367,383
20 902,701 388,877 388,877 2,388,877 378,975 378,975 2,378,975
25 1,302,950 445,789 445,789 2,445,789 407,539 407,539 2,407,539
30 1,813,781 456,472 456,472 2,456,472 350,148 350,148 2,350,148
35 2,465,744 365,708 365,708 2,365,708 101,666 101,666 2,101,666
40 3,297,834 62,112 62,112 2,062,112 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-21
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return 0% (-1.57% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1) $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
----------------------------------------- -----------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 23,845 22,545 2,023,845 23,845 22,545 2,023,845
2 55,965 47,270 46,230 2,047,270 47,270 46,230 2,047,270
3 86,063 70,274 69,494 2,070,274 70,274 69,494 2,070,274
4 117,666 92,850 92,330 2,092,850 92,850 92,330 2,092,850
5 150,850 114,993 114,733 2,114,993 114,993 114,733 2,114,993
6 185,692 136,694 136,694 2,136,694 136,694 136,694 2,136,694
7 222,277 157,938 157,938 2,157,938 157,938 157,938 2,157,938
8 260,691 178,708 178,708 2,178,708 178,708 178,708 2,178,708
9 301,025 198,979 198,979 2,198,979 198,979 198,979 2,198,979
10 343,376 218,724 218,724 2,218,724 218,724 218,724 2,218,724
11 387,845 237,908 237,908 2,237,908 237,908 237,908 2,237,908
12 434,538 256,568 256,568 2,256,568 256,568 256,568 2,256,568
13 483,564 274,663 274,663 2,274,663 274,663 274,663 2,274,663
14 535,043 292,146 292,146 2,292,146 292,146 292,146 2,292,146
15 589,095 308,953 308,953 2,308,953 308,953 308,953 2,308,953
16 645,850 326,207 326,207 2,326,207 325,004 325,004 2,325,004
17 705,442 342,910 342,910 2,342,910 340,195 340,195 2,340,195
18 768,014 358,987 358,987 2,358,987 354,383 354,383 2,354,383
19 833,715 374,345 374,345 2,374,345 367,383 367,383 2,367,383
20 902,701 388,877 388,877 2,388,877 378,975 378,975 2,378,975
25 1,302,950 445,789 445,789 2,445,789 407,539 407,539 2,407,539
30 1,813,781 456,472 456,472 2,456,472 350,148 350,148 2,350,148
35 2,465,744 365,708 365,708 2,365,708 101,666 101,666 2,101,666
40 3,297,834 62,112 62,112 2,062,112 0 0 0
45 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-22
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<CAPTION>
Death Benefit Option II; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1) $26,000
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
------------------------------------------- ----------------------------------------
END ACCUMULATED
0F AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- ------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 25,299 23,999 2,025,299 25,299 23,999 2,025,299
2 55,965 51,672 50,632 2,051,672 51,672 50,632 2,051,672
3 86,063 79,158 78,378 2,079,158 79,158 78,378 2,079,158
4 117,666 107,794 107,274 2,107,794 107,794 107,274 2,107,794
5 150,850 137,616 137,356 2,137,616 137,616 137,356 2,137,616
6 185,692 168,662 168,662 2,168,662 168,662 168,662 2,168,662
7 222,277 200,965 200,965 2,200,965 200,965 200,965 2,200,965
8 260,691 234,553 234,553 2,234,553 234,553 234,553 2,234,553
9 301,025 269,516 269,516 2,269,516 269,516 269,516 2,269,516
10 343,376 305,956 305,956 2,305,956 305,956 305,956 2,305,956
11 387,845 343,900 343,900 2,343,900 343,900 343,900 2,343,900
12 434,538 383,373 383,373 2,383,373 383,373 383,373 2,383,373
13 483,564 424,398 424,398 2,424,398 424,398 424,398 2,424,398
14 535,043 466,996 466,996 2,466,996 466,996 466,996 2,466,996
15 589,095 511,171 511,171 2,511,171 511,171 511,171 2,511,171
16 645,850 558,147 558,147 2,558,147 556,905 556,905 2,556,905
17 705,442 607,038 607,038 2,607,038 604,161 604,161 2,604,161
18 768,014 657,851 657,851 2,657,851 652,853 652,853 2,652,853
19 833,715 710,577 710,577 2,710,577 702,846 702,846 2,702,846
20 902,701 765,187 765,187 2,765,187 753,965 753,965 2,753,965
25 1,302,950 1,065,875 1,065,875 3,065,875 1,018,746 1,018,746 3,018,746
30 1,813,781 1,397,752 1,397,752 3,397,752 1,258,066 1,258,066 3,258,066
35 2,465,744 1,703,264 1,703,264 3,703,264 1,338,877 1,338,877 3,338,877
40 3,297,834 1,840,765 1,840,765 3,840,765 1,017,466 1,017,466 3,017,466
45 4,359,814 1,573,886 1,573,886 3,573,886 0 0 0
50 5,715,200 609,277 609,277 2,609,277 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
_____________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-23
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<CAPTION>
Death Benefit Option II; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 6% (4.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1) $26,000
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
----------------------------------------- -------------------------------------------
END ACCUMULATED
0F AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ---------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 25,299 23,999 2,025,299 25,299 23,999 2,025,299
2 55,965 51,672 50,632 2,051,672 51,672 50,632 2,051,672
3 86,063 79,158 78,378 2,079,158 79,158 78,378 2,079,158
4 117,666 107,794 107,274 2,107,794 107,794 107,274 2,107,794
5 150,850 137,616 137,356 2,137,616 137,616 137,356 2,137,616
6 185,692 168,662 168,662 2,168,662 168,662 168,662 2,168,662
7 222,277 200,965 200,965 2,200,965 200,965 200,965 2,200,965
8 260,691 234,553 234,553 2,234,553 234,553 234,553 2,234,553
9 301,025 269,516 269,516 2,269,516 269,516 269,516 2,269,516
10 343,376 305,956 305,956 2,305,956 305,956 305,956 2,305,956
11 387,845 343,900 343,900 2,343,900 343,900 343,900 2,343,900
12 434,538 383,373 383,373 2,383,373 383,373 383,373 2,383,373
13 483,564 424,398 424,398 2,424,398 424,398 424,398 2,424,398
14 535,043 466,996 466,996 2,466,996 466,996 466,996 2,466,996
15 589,095 511,171 511,171 2,511,171 511,171 511,171 2,511,171
16 645,850 558,147 558,147 2,558,147 556,905 556,905 2,556,905
17 705,442 607,038 607,038 2,607,038 604,161 604,161 2,604,161
18 768,014 657,851 657,851 2,657,851 652,853 652,853 2,652,853
19 833,715 710,577 710,577 2,710,577 702,846 702,846 2,702,846
20 902,701 765,187 765,187 2,765,187 753,965 753,965 2,753,965
25 1,302,950 1,065,875 1,065,875 3,065,875 1,018,746 1,018,746 3,018,746
30 1,813,781 1,397,752 1,397,752 3,397,752 1,258,066 1,258,066 3,258,066
35 2,465,744 1,703,264 1,703,264 3,703,264 1,338,877 1,338,877 3,338,877
40 3,297,834 1,840,765 1,840,765 3,840,765 1,017,466 1,017,466 3,017,466
45 4,359,814 1,573,886 1,573,886 3,573,886 0 0 0
50 5,715,200 609,277 609,277 2,609,277 0 0 0
55 0 0 0 0 0 0 0
</TABLE>
_____________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-24
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C>
Death Benefit Option II; Guideline Premium Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.34% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
---------------------------------------- ---------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- --------- -------- -------- ---------- ------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 26,753 25,453 2,026,753 26,753 25,453 2,026,753
2 55,965 56,248 55,208 2,056,248 56,248 55,208 2,056,248
3 86,063 88,762 87,982 2,088,762 88,762 87,982 2,088,762
4 117,666 124,597 124,077 2,124,597 124,597 124,077 2,124,597
5 150,850 164,086 163,826 2,164,086 164,086 163,826 2,164,086
6 185,692 207,592 207,592 2,207,592 207,592 207,592 2,207,592
7 222,277 255,513 255,513 2,255,513 255,513 255,513 2,255,513
8 260,691 308,438 308,438 2,308,438 308,438 308,438 2,308,438
9 301,025 366,922 366,922 2,366,922 366,922 366,922 2,366,922
10 343,376 431,531 431,531 2,431,531 431,531 431,531 2,431,531
11 387,845 502,884 502,884 2,502,884 502,884 502,884 2,502,884
12 434,538 581,663 581,663 2,581,663 581,663 581,663 2,581,663
13 483,564 668,622 668,622 2,668,622 668,622 668,622 2,668,622
14 535,043 764,593 764,593 2,764,593 764,593 764,593 2,764,593
15 589,095 870,478 870,478 2,870,478 870,478 870,478 2,870,478
16 645,850 988,539 988,539 2,988,539 987,359 987,259 2,987,259
17 705,442 1,119,041 1,119,041 3,119,041 1,116,000 1,116,000 3,116,000
18 768,014 1,623,249 1,263,249 3,263,249 1,257,836 1,257,836 3,257,836
19 833,715 1,422,543 1,422,543 3,422,543 1,413,977 1,413,977 3,413,977
20 902,701 1,598,437 1,598,437 3,598,437 1,585,731 1,585,731 3,585,731
25 1,302,950 2,792,963 2,792,963 4,792,963 2,734,309 2,734,309 4,734,309
30 1,813,781 4,736,891 4,736,881 6,736,881 4,547,956 4,547,956 6,547,956
35 2,465,744 7,861,073 7,861,073 9,861,073 7,331,978 7,331,978 9,331,978
40 3,297,834 12,810,199 12,810,199 14,810,199 11,515,490 11,515,490 13,515,490
45 4,359,814 20,604,450 20,604,450 22,604,450 17,689,409 17,689,409 19,689,409
50 5,715,200 32,973,206 32,973,206 34,973,206 26,900,908 26,900,908 28,900,908
55 7,445,054 52,927,477 52,927,477 54,927,477 38,626,447 38,626,447 40,626,447
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OR RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FORM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-25
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Chubb Advisor II Joint And Last Survivor
Flexible Premium Variable Life Insurance Policy
<TABLE>
<S> <C> <C>
Death Benefit Option II; Cash Value Accumulation Test Assumed Hypothetical Gross
Male Non-Smoker Issue Age 45 Annual Rate of Return: 12% (10.43% net)
Female Non-Smoker Issue Age 45
$2,000,000 Initial Specified Amount Assumed Annual Premium (1): $26,000
</TABLE>
<TABLE>
<CAPTION>
PREMIUMS Assuming Current Costs Assuming Guaranteed Costs
----------------------------------------- ----------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ----------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 27,300 26,753 25,453 2,026,753 26,753 25,453 2,026,753
2 55,965 56,248 55,208 2,056,248 56,248 55,208 2,056,248
3 86,063 88,762 87,982 2,088,762 88,762 87,982 2,088,762
4 117,666 124,567 124,077 2,124,597 124,597 124,077 2,124,597
5 150,850 164,086 163,826 2,164,086 164,086 163,826 2,164,086
6 185,692 207,592 207,592 2,207,592 207,592 207,592 2,207,592
7 222,277 255,513 255,513 2,255,513 255,513 255,513 2,255,513
8 260,691 308,438 308,438 2,308,438 308,438 308,438 2,308,438
9 301,025 366,922 366,922 2,366,922 366,922 366,922 2,366,922
10 343,376 431,531 431,531 2,431,531 431,531 431,531 2,431,531
11 387,845 502,884 502,884 2,502,884 502,884 502,884 2,502,884
12 434,538 581,663 581,663 2,581,663 581,663 581,663 2,581,663
13 483,564 668,622 668,622 2,668,622 668,622 668,622 2,668,622
14 535,043 764,593 764,593 2,764,593 764,593 764,593 2,764,593
15 589,095 870,478 870,478 2,870,478 870,478 870,478 2,870,479
16 645,850 988,539 988,539 2,988,539 987,259 987,259 2,987,259
17 705,442 1,119,041 1,119,041 3,119,041 1,116,000 1,116,000 3,116,000
18 768,014 1,263,249 1,263,249 3,263,249 1,257,836 1,257,836 3,257,836
19 833,715 1,422,543 1,422,543 3,422,543 1,413,977 1,413,977 3,413,977
20 902,701 1,598,437 1,598,437 3,598,437 1,585,731 1,585,731 3,585,731
25 1,302,950 2,790,601 2,790,601 5,162,612 (3) 2,730,826 2,730,826 5,052,028 (3)
30 1,813,781 4,708,749 4,708,749 7,486,910 (3) 4,503,231 4,503,231 7,160,138 (3)
35 2,465,744 7,721,194 7,721,194 10,809,672 (3) 7,116,197 7,116,197 9,962,676 (3)
40 3,297,834 12,316,626 12,316,626 15,518,949 (3) 10,825,932 10,825,932 13,640,675 (3)
45 4,359.814 19,171,955 19,171,955 22,622,907 (3) 15,892,544 15,892,544 18,753,202 (3)
50 5,715,200 29,521,289 29,521,289 32,768,630 (3) 23,027,579 23,027,579 25,560,613 (3)
55 7,445,054 46,490,264 46,490,264 48,490,264 31,859,148 31,859,148 33,859,148
</TABLE>
__________________
(1) Assumes a $26,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(3) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATIVE OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR CHUBB SERIES TRUST. THE ACCUMULATION VALUE, CASH VALUE AND
DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY CHUBB LIFE, SEPARATE ACCOUNT C, OR CHUBB SERIES TRUST THAT THIS
ASSUMED INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C-26
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the SEC such supplementary and periodic information, documents, and reports as
may be prescribed by any rule or regulation of the Securities and Exchange
Commission heretofore, or hereafter duly adopted pursuant to authority conferred
in that section.
UNDERTAKING REGARDING INDEMNIFICATION
Pursuant to Rule 484(b)(1) of the Securities Act of 1933, insofar as
indemnification for liability arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the Registrant, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
REPRESENTATIONS REGARDING FEES AND CHARGES
The fees and charges deducted under the contract, in the aggregate, are
reasonable in relation to the services rendered, the expenses expected to be
incurred, and the risks assumed by Chubb Life Insurance Company of America.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following pages and documents:
The facing sheet
The prospectus consisting of 51 pages
The undertaking to file reports
The undertaking pursuant to Rule 484(b)(1) under the Securities Act of 1993
regarding indemnification
The signatures
Written consents of the following persons:
II-1
<PAGE>
Michael J. LeBoeuf, FSA MAAA, contained in Exhibit 6 below
The following exhibits:
1. The following exhibits correspond to those required by paragraph A of
the instructions as to exhibits in Form N-8B-2:
(a)(i) Certified Copy of Resolution of the Executive Committee of the
Board of Directors of Chubb Life Insurance Company of America establishing Chubb
Separate Account C. (Incorporated by reference to Exhibit 1(a) to Registrant's
Post-Effective Amendment No. 2 to the Registration Statement on Form S-6, filed
on December 10, 1993, File No. 33-72830.)
(ii) Certified Copy of Resolution of the Board of Directors of Chubb
Life Insurance Company of America authorizing the registration of a new policy
offered through the Chubb Separate Account C. (Incorporated by reference to
Exhibit 1(a) to Registrant's Post-Effective Amendment No.2 to the Registration
Statement on Form S-6, filed on December 10, 1993, File No. 33-72830.)
(b) Not applicable
(c)(i) Form of Distribution Agreement among Chubb Life Insurance Company
of America, Chubb Separate Account C, and Chubb Securities Corporation.
(Incorporated by reference to Exhibit 1(c)i to Registrant's Post-Effective
Amendment No. 2 to the Registration Statement on Form S-6, filed on December 10,
1993, File No. 33-72830.)
(ii) Specimen Variable Contracts Selling Agreement between Chubb
Securities Corporation and Selling Broker-Dealers. (Incorporated by reference to
Exhibit 1(c)ii to Registrant's Post-Effective Amendment No. 2 to the
Registration Statement on Form S-6, filed on December 10, 1993, File
No. 33-72830.)
(d) Not applicable
(e)(i) Specimen flexible premium variable life insurance policy. (To be
filed by Amendment)
(ii) Specimen joint and last survivor flexible premium variable life
insurance policy. (To be filed by Amendment)
(iii) Forms of Riders. (Incorporated by reference to Exhibit 1(e)iii
to Registrant's Post-Effective Amendment No. 2 to the Registration Statement
on Form S-6, filed on December 10, 1993, File No. 33-72830.)
(f)(i) Amended and Restated Charter, with all amendments, of Chubb Life
Insurance Company of America. (Incorporated by
II-2
<PAGE>
reference to Exhibit 1(f)i to Registrant's Post-Effective Amendment No. 2 to the
Registration Statement on Form S-6, filed on December 10, 1993, File No.
33-72830.)
(ii) By-Laws of Chubb Life Insurance Company of America. (Incorporated
by reference to Exhibit 1(f)ii to Registrant's Post-Effective Amendment No. 2 to
the Registration Statement on Form S-6, filed on December 10, 1993, File No.
33-72830.)
(g) Not Applicable
(h)(i) Fund Distribution Agreement between Chubb America Fund, Inc., and
Chubb Securities Corporation. (Incorporated by reference to Exhibit 6(b) of
Chubb America Fund's Post-Effective Amendment No. 7 to the Registration
Statement on Form N-1A, filed on April 11, 1990, File No. 2-94479.)
(ii) Amendment to Fund Distribution Agreement between Chubb America
Fund, Inc. and Chubb Securities Corporation. (Incorporated by reference to
Exhibit 6(a) of Chubb America Fund Inc.'s Post-Effective Amendment No. 7 to the
Registration Statement on Form N-1A, filed April 11, 1990, File No. 2-94479.)
(iii) Amended and Restated Investment Management Agreement between Chubb
America Fund, Inc. and Chubb Investment Advisory Corporation. (Incorporated by
reference to Exhibit 5(a) of Chubb America Fund, Inc.'s Post-Effective Amendment
No. 7 to the Registration Statement on Form N-1A, filed April 11, 1990, File No.
2-94479.)
(iv) Sub-Investment Management Agreement among Chubb America Fund,
Inc., Chubb Investment Advisory Corporation and Chubb Asset Managers, Inc.
(Incorporated by reference to Exhibit 5(e) of Chubb America Fund, Inc.'s
Post-Effective Amendment No. 7 to the Registration Statement on Form N-1A, filed
April 11, 1990, File No. 2-94479.)
(v) Sub-Investment Management Agreement among Chubb Investment
Advisory Corporation and Chubb Asset Managers, Inc. (Incorporated by reference
to Exhibit 5(h) of Chubb America Fund, Inc.'s Post-Effective Amendment No. 9 to
the Registration Statement on Form N-1A, filed February 28, 1992, File No.
2-94479.)
(vi) Investment Management Agreement among Chubb America Fund, Inc.,
and Chubb Investment Advisory Corporation for the Capital Growth Portfolio.
(Incorporated by reference to Exhibit 5(g) of Chubb America Fund, Inc.'s
Post-Effective Amendment No. 9 to the Refistration Statement on Form N-1A, filed
February 28, 1992, File No. 2-94479.)
(vii) Custodian Agreement between Chubb America Fund,
II-3
<PAGE>
Inc. and Citibank N.A. (Incorporated by reference to Exhibit 8 of Chubb America
Fund, Inc.'s Post-Effective Amendment No. 8 to the Registration Statement on
Form N-1A, filed February 21, 1991, File No. 2-94479.)
(viii) Amendment No. 1 to Custodian Agreement between Chubb America
Fund, Inc. and Citibank N.A. (Incorporated by reference to Exhibit 8(b) of Chubb
America Fund, Inc.'s Post-Effective Amendment No. 11 to the Registration
Statement on Form N-1A, filed April 14, 1993, File No. 2-94479.)
(ix) Amendment No. 2 to Custodian Agreement between Chubb America
Fund, Inc. and Citibank N.A. (Incorporated by reference to Exhibit 8(b) of Chubb
America Fund, Inc.'s Post-Effective Amendment No. 11 to the Registration
Statement on Form N-1A, filed April 14, 1993, File No. 2-94479.)
(x) Investment Management Agreement between Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute Equity
Portfolio. (Incorporated by reference to Pre-Effective Amendment No. 2 to the
Registration Statement on Form N-1A, of Chubb Series Trust filed on July 22,
1994, File No. 33-72834.)
(xi) Investment Management Agreement between Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute Small
Company Portfolio. (Incorporated by reference to Pre-Effective Amendment No.2 to
the Registration Statement on Form N-1A, of Chubb Series Trust filed on July 22,
1994, File No. 33-72834.)
(xii) Investment Management Agreement between Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute International
Equity Portfolio. (Incorporated by reference to Pre-Effective Amendment No. 2 to
the Registration Statement on Form N-1A of Chubb Series Trust file on July 22,
1994, File No. 33-72834.)
(xiii) Sub-Investment Management Agreement among Chubb Series Trust,
Chubb Investment Advisory Corporation and Morgan Guaranty Trust Company of New
York with respect to the Resolute Equity Portfolio. (Incorporated by reference
to Pre-Effective Amendment No. 2 to the Registration Statement on Form N-1A, of
Chubb Series Trust filed on July 22, 1994, File No. 33-72834.)
(xiv) Sub-Investment Management Agreement among Chubb Series Trust,
Chubb Investment Advisory Corporation and Morgan Guaranty Trust Company of New
York with respect to the Resolute Small Company Portfolio. (Incorporated by
reference to Pre-Effective Amendment No.2 to the Registration Statement on Form
N-1A of Chubb Series Trust filed on July 22, 1994, File No. 33-72834.)
II-4
<PAGE>
(xv) Sub-Investment Management Agreement among Chubb Series Trust,
Chubb Investment Advisory Corporation and Morgan Guaranty Trust Company of New
York with respect to the Resolute International Equity Portfolio. (Incorporated
by reference to Pre-Effective Amendment No. 2 to the Registration Statement on
Form N-1A of Chubb Series Trust filed on July 22, 1994, File No. 33-72834.)
(xvi) Custodial Services Agreement between Chubb Series Trust, Chubb
Investment Advisory Corporation and Morgan Guaranty Trust Company of New York.
(Incorporated by reference to the Registration Statement on Form N-1A, of Chubb
Series Trust filed on December 10, 1993, File No. 33-72834.)
(i) Not applicable.
(j) Application (To be filed by Amendment).
2. Specimen Policy (Same as 1(e)).
3. Opinion of counsel as to securities being registered.
4. Not applicable.
5. Not applicable.
6. Actuarial opinions and consents of Michael J. LeBoeuf, FSA, MAAA.
7. Consent of Ernst & Young LLP (To be filed by Amendment).
8. Procedures Memorandum pursuant to Rule 6e-3(T)(b)(12)(iii) under the
1940 Act (To be filed by Amendment).
9. Representations, description and undertakings regarding mortality and
expense risk charge, pursuant to Rule 6e-3(T)(b)(13)(iii)(F).
10. Form of Reinsurance Agreement (Incorporated by reference to Exhibit 10
of Registrant's Post-Effective Amendment No. 2 to the Registration Statement on
Form S-6, filed December 10, 1993, File No. 33-72830).
11. Memorandum regarding reliance on Order of the Commission to deduct the
DAC Tax Charge (Incorporated by reference to Exhibit 12 to Registrant's Post-
Effective Amendment No. 2 to the Registration Statement on Form S-6, filed on
December 10, 1993, File No. 33-72830.
12. Financial Data Schedule. Not applicable.
II-5
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Chubb Separate Account C, has caused this Registration Statement to be signed on
its behalf by the undersigned thereunto duly authorized, and its seal to be
hereunto affixed and attested, all in Concord, New Hampshire, on the 30th day of
June, 1995.
(Seal) Chubb Separate Account C
(Registrant)
Chubb Life Insurance Company of
America (Depositor)
By: /s/ Theresa M. Stone
---------------------------------
Theresa M. Stone
President and
Chief Executive Officer
Attest:
/s/ Charles C. Cornelio
--------------------------------
Charles C. Cornelio
Assistant Secretary
<PAGE>
Robert V. Lindsay
Signatures Title Date
---------- ----- ----
/s/
- ------------------------- Director June 30, 1995
Thomas C. MacAvoy
/s/
- ------------------------- Director June 30, 1995
Gertrude G. Michelson
/s/
- ------------------------- Director, Chairman June 30, 1995
Dean R. O'Hare
/s/
- ------------------------- Director June 30, 1995
Warren B. Rudman
/s/
- ------------------------- Director June 30, 1995
Sir David G. Scholey, COE
/s/
- ------------------------- Director June 30, 1995
Raymond G. H. Seitz
/s/
- ------------------------- Vice President and June 30, 1995
Russell C. Simpson Treasurer
/s/
- ------------------------- Director June 30, 1995
Lawrence M. Small
/s/
- ------------------------- President and Chief June 30, 1995
Theresa M. Stone Executive Officer
/s/
- ------------------------- Executive Vice President June 30, 1995
Richard V. Werner and Chief Financial Officer
/s/
- ------------------------- Director June 30, 1995
Richard D. Wood
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Chubb Life
Insurance Company of America has caused this Registration Statement to be signed
on its behalf by the undersigned thereunto duly authorized, and its seal to be
hereunto affixed and attested, all in Concord, New Hampshire on the 30th day of
June, 1995.
(SEAL) CHUBB LIFE INSURANCE COMPANY OF AMERICA
By: /s/
----------------------------------------
Theresa M. Stone
Title: President and Chief Executive Officer
-------------------------------------
ATTEST:
/s/
- ----------------------------------------
Charles C. Cornelio, Assistant Secretary
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
Signatures Title Date
---------- ----- ----
/s/
- ---------------------- Director June 30, 1995
John C. Beck
/s/
- ---------------------- Director, Vice Chairman June 30, 1995
Percy Chubb, III
/s/
- ---------------------- Director June 30, 1995
Joel J. Cohen
/s/
- ---------------------- Director June 30, 1995
Henry U. Harder
/s/
- ---------------------- Director June 30, 1995
David H. Hoag
/s/
- ---------------------- Director June 30, 1995
<PAGE>
EXHIBIT INDEX
Sequentially
Numbered
Pages*
3. Opinion of counsel as to securities
being registered.............................
6. Actuarial opinions and consents of
Michael J. LeBoeuf, FSA, MAAA................
9. Representations, description and undertakings
regarding mortality and expense risk charge,
pursuant to Rule 6e-3(T)(b)(13)(iii)(F)......
<PAGE>
EXHIBIT 3
Opinion of Counsel
as to Securities Being Registered
<PAGE>
[LETTERHEAD OF CHUBB LIFE AMERICA APPEARS HERE]
March 12, 1996
Chubb Life Insurance Company of America
One Granite Place
Concord, New Hampshire 03301
Gentlemen:
This opinion is furnished in connection with the filing by Chubb Life Insurance
Company of America ("Chubb Life") of a Registration Statement on Form S-6 under
the Securities Act of 1933 (the "Act") of interests in the Chubb Separate
Account C (the "Separate Account") under its individual variable life insurance
policies (collectively, the "Policies"). This opinion covers both the
individual flexible premium variable life insurance policy ("Chubb Advisor I")
and the survivorship flexible premium variable life insurance policy ("Chubb
Advisor II").
I am familiar with the terms of the Policies and the Registration Statement and
the Exhibits hereto. I have also examined all such corporate records of Chubb
Life and such other documents and laws as I considered appropriate as a basis
for the opinion hereinafter expressed. On the basis of such examination, it is
my opinion that:
1. Chubb Life is a corporation duly organized and validly existing under the
laws of the State of New Hampshire.
2. The Separate Account is a separate account of Chubb Life validly existing
pursuant to the New Hampshire Revised Statutes Annotated and the regulations
issued thereunder, under which income, gains and losses, whether or not
realized, from assets allocated to the Separate Account, are, in accordance
with the Policies, credited to or charged against the Separate Account
without regard to other income, gains or losses of Chubb Life.
3. Assets allocated to the Separate Account will be owned by Chubb Life; Chubb
Life is not a trustee with respect thereto. The Policies provide that the
portion of the assets of the Separate Account equal to the reserves and
other Policy liabilities with respect to the Separate Account will not be
chargeable with liabilities arising out of any other business Chubb Life may
conduct. Chubb
<PAGE>
March 12, 1996
Page Two
Life reserves the right to transfer assets of the Separate Account in
excess of such reserves and other Policy liabilities to the general account
of Chubb Life.
4. The Policies (including any units duly credited thereunder) have been duly
authorized by Chubb Life and when issued and sold in jurisdictions that have
approved the policy form for sale in accordance with the insurance law of
that jurisdiction, each of the Policies (including any such units) will
constitute validly issued and binding obligations of Chubb Life in
accordance with its terms. Purchasers of the Policies are subject only to
the deductions, charges and fees set forth in the Prospectus.
I hereby consent to the filing of this opinion as an Exhibit to the Registration
Statement of the Separate Account filed under the Act.
Sincerely,
/s/ Shari J. Lease
Shari J. Lease
Assistant Vice President
and Counsel
<PAGE>
Exhibit 6
Actuarial Opinions and Consents
of
Michael J. LeBoeuf, FSA, MAAA
<PAGE>
[LETTERHEAD OF CHUBB LIFE AMERICA APPEARS HERE]
March 12, 1996
Chubb Life Insurance Company of America
Post Office Box 515
Concord, New Hampshire 03301
Gentlemen:
This opinion is furnished in connection with the filing of the registration
statement of Chubb Life Insurance Company of America ("Chubb") on Form S-6,
("Registration Statement") of interests in Chubb Separate Account C ("Separate
Account C") under its variable life insurance policies (the "Policies"). This
opinion covers both the individual flexible premium variable life insurance
policy ("Chubb Advisor I") and the survivorship flexible premium variable life
insurance policy ("Chubb Advisor II").
I am familiar with the terms of the Policies and the Registration Statement and
the Exhibits thereto. In my opinion:
1. The illustrations of death benefits, accumulation value, and cash value
for the Policies in Appendix A of the prospectus, based on the
assumptions stated in the illustrations, are consistent with the
provisions of the Policies.
The Policies have not been designed so as to make the relationship
between premiums and benefits, as shown in the illustrations, appear
disproportionately more favorable to prospective purchasers of Policies
for the age(s), gender(s), smoking status(es), and underwriting
class(es) illustrated in Appendix A than to prospective purchasers of
Policies for other age(s), gender(s), smoking status(es), and
underwriting class(es). The particular illustrations shown were not
selected for the purpose of making this relationship appear more
favorable. Generally, the rates for non-smokers are lower than for
smokers and the rates for females are lower than for males.
<PAGE>
March 12, 1996
Page Two
2. The illustrations of death benefits, accumulation value and cash value
for the Policies, set forth in Appendix A of the prospectus, based on
the net return of the five divisions of Separate Account C and the
assumptions stated within the examples, are consistent with the
provisions of the Policies.
The illustrations in Appendix A have not been designed so as to make
the relationships between premiums and benefits appear
disproportionately more favorable to prospective purchasers of Policies
for age(s), gender(s), smoking status(es), and underwriting class(es)
illustrated in Appendix A than to prospective purchasers of Policies
for other age(s), gender(s), smoking status(es), and underwriting
class(es). Generally, the rates for non-smokers are lower than for
smokers and the rates for females are lower than for males.
3. The illustrations set forth in Appendix A of the prospectus contain
both the current and guaranteed rates of cost of insurance charges to
be used for those Policies.
These rates have not been designed so as to make the relationships
between current and guaranteed rates appear disproportionately more
favorable to prospective purchasers of Policies for the age(s),
gender(s), smoking status(es) and underwriting class(es) illustrated in
Appendix A than to prospective purchasers of policies for other age(s),
gender(s), smoking status(es), and underwriting class(es). The
particular illustrations shown were not selected for the purpose of
making this relationship appear more favorable. Generally, the rates
for non-smokers are lower than for smokers and the rates for females
are lower than for males.
I hereby consent to the use of this opinion as an Exhibit to the Registration
Statement and to the reference to my name under the heading "Experts" in the
prospectus.
Sincerely,
/s/ Michael J. LeBoeuf
Michael J. LeBoeuf, FA, MALA
Assistant Vice President
and Product Actuary
MAL/jlf
<PAGE>
Exhibit 9
Representations, Descriptions and Undertakings
Regarding Mortality and Expense Risk Charge,
Pursuant to
Rule 6e-3(T)(b)(13)(iii)(F)
<PAGE>
REPRESENTATIONS, DESCRIPTION AND
UNDERTAKINGS PURSUANT TO
RULE 6e-3(T)(b)(13)(iii)(F) UNDER
THE INVESTMENT COMPANY ACT OF 1940
The Chubb Life Insurance Company of America ("Chubb"), on behalf of its Chubb
Separate Account C, makes the following representations:
1. Section 6e3(T)(b)(13)(iii)(F) is being relied upon.
2. The level of mortality and expense risk charge is reasonable in relation to
the risks assumed and is within the range of industry practice for
comparable contracts.
3. The methodology used to support the representation made in paragraph (2)
above is based on analysis of the mortality and expense risk charges being
made in relation to the risks assumed, as well as those in comparable
flexible premium contracts filed with the Commission- both single life
policies and survivorship policies, Chubb undertakes to keep and make
available to the Commission or request the documents used to support the
representation in paragraph (2) above.
4. It is expected that the proceeds from explicit sales loads will be
sufficient to cover the expected costs of distributing the flexible
contracts. If this is ever not the case, Chubb has concluded that there is a
reasonable likelihood that the distribution financing arrangement will
benefit Chubb Separate Account C and policy and certificate owners. Chubb
undertakes to keep and make available to the Commission on request the
memorandum setting forth the basis for this representation.
5. Chubb represents that Chubb Separate Account C will invest only in
management investment companies which have undertaken to have a board of
directors, a majority of whom are not interested persons of the company,
formulate and approve any plan under Rule 12b-1 to finance distribution
expenses.
/s/ Michael J. LeBoeuf
Michael J. LeBoeuf, FSA, MAAA
Assistant Vice President
and Product Actuary
