<PAGE>
As filed with the Securities and Exchange Commission on February 28, 1996
FILE NO. 33-72830
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 2
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT
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.
Chubb Life Insurance
Company of America
One Granite Place
Concord, NH 03301
Joan E. Boros, Esq.
Katten Muchin & Zavis
1025 Thomas Jefferson Street, N.W.
East Lobby, Suite 700
Washington, D.C. 20007
----------------------------
It is proposed that this filing will become effective (check appropriate box)
. immediately upon filing pursuant to paragraph (b)
. on May 1, 1996 pursuant to paragraph (b)
. 60 days after filing pursuant to paragraph (a)(i)
. on May 1, 1996 pursuant to paragraph (a)(i) of rule (485)
. this post-effective amendment designates a
new effective date for a previously filed post-effective amendment."
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. Registrant filed a Rule 24f-2 Notice
for the fiscal year ending December 31, 1995 on February 27, 1996.
H. Approximate date of proposed public offering:
As soon as practicable after the effective date.
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>
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 Heritage I") and a survivorship flexible premium variable life
insurance policy form ("Chubb Heritage 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, the Policyowner participates in the investment experience of Separate
Account C. Accumulation Value under the Policies will increase with positive
investment experience and decrease with negative investment experience.
Accumulation Value in Separate Account C is not guaranteed and could decline to
zero.
Chubb Heritage I provides life insurance coverage on one Insured, with
the Death Benefit payable at the Insured's death. Chubb Heritage 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 ("withdrawal"), and the charges assessed in
connection with the Policy. As long as the Policy remains in force, the Death
Benefit will not be less than the current Specified Amount of the Policy,
reduced by any outstanding indebtedness and any due and unpaid fees and charges.
The minimum initial Specified Amount is $500,000 for Chubb Heritage I and
$2,000,000 for Chubb Heritage II. After a withdrawal, the Specified Amount may
not be reduced to less than $250,000 for Chubb Heritage I and $500,000 for Chubb
Heritage II Policy.
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 equals 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 one death benefit option
to the other after the Policy has been issued.
The initial premium payment must be sufficient to keep the Policy in
force for at least three months. If a Policyowner chooses the Guaranteed Death
Benefit Rider, the Death Benefit will be guaranteed to never be less than the
Specified Amount, provided that a cumulative minimum premium requirement is met.
No premium payment may be less than $500.
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 imposed in connection with the Policy. 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 charges imposed
in connection with the Policy. 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 portfolio (a "Portfolio") of
Chubb Series Trust (the "Trust"). 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
<PAGE>
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 Prospectus for the Trust and the Statement of Additional
Information, available on request, describe the investment objectives and risks
of the five Portfolios of the Trust. 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 ("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 A Current Prospectus For
Chubb Series Trust
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
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 May 1, 1996
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
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<S> <C>
DEFINITIONS....................................................... 3
SUMMARY........................................................... 4
CHUBB LIFE INSURANCE COMPANY OF
AMERICA.......................................................... 9
CHUBB SEPARATE ACCOUNT C.......................................... 9
Divisions..................................................... 9
CHUBB SERIES TRUST................................................ 9
THE POLICIES...................................................... 11
General....................................................... 11
Payment of Premiums........................................... 11
Guaranteed Death Benefit Premiums............................. 11
Premium Limitations........................................... 11
Allocation of Premiums........................................ 12
Transfers..................................................... 12
Telephone Transfers, Loans and
Reallocations............................................... 13
Policy Lapse.................................................. 14
Reinstatement................................................. 14
Policy "Free Look"............................................ 14
CHARGES AND DEDUCTIONS............................................ 14
Premium Charges............................................... 14
</TABLE>
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<TABLE>
<S> <C>
Monthly Deduction............................................... 15
Risk Charge..................................................... 16
Surrender Charge................................................ 16
Administrative Fees............................................. 16
Other Charges................................................... 16
POLICY BENEFITS AND RIGHTS.......................................... 16
Death Benefits.................................................. 16
Guaranteed Death Benefit........................................ 18
Combined Requests............................................... 18
Maturity of the Policy.......................................... 18
Optional Insurance Benefits..................................... 18
Settlement Options.............................................. 19
CALCULATION OF ACCUMULATION
VALUE........................................................... 19
Unit Values..................................................... 20
Net Investment Factor........................................... 20
CASH VALUE BENEFITS................................................. 21
Surrender Privileges............................................ 21
Policy Loans.................................................... 21
<CAPTION>
Page
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<S> <C>
OTHER MATTERS....................................................... 23
Voting Rights................................................... 23
Additions, Deletions or Substitutions of
Investments................................................... 23
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Annual Report................................................... 23
Confirmation.................................................... 23
Limitation on Right to Contest.................................. 24
Misstatements................................................... 24
Suicide......................................................... 24
Beneficiaries................................................... 24
Postponement of Payments........................................ 24
Assignment...................................................... 24
Illustration of Benefits and Values............................. 24
Non-Participating Policy........................................ 24
THE GENERAL ACCOUNT................................................. 25
General Description............................................. 25
General Account Accumulation Value.............................. 25
Determination of Charges........................................ 25
Premium Deposit Fund............................................ 25
DISTRIBUTION OF THE POLICY.......................................... 26
Group or Sponsored Arrangements................................. 26
MANAGEMENT OF CHUBB LIFE............................................ 27
Executive Officers and Directors of Chubb
Life.......................................................... 27
Executive Officers (Other Than Directors)....................... 28
STATE REGULATION OF CHUBB LIFE...................................... 29
</TABLE>
<PAGE>
<TABLE>
<S> <C>
FEDERAL TAX MATTERS................................................. 29
Tax Considerations.............................................. 29
Policy Proceeds................................................. 29
Charge for Chubb Life Income Taxes.............................. 32
EMPLOYEE BENEFIT PLANS.............................................. 32
LEGAL PROCEEDINGS................................................... 32
EXPERTS............................................................. 32
REGISTRATION STATEMENT.............................................. 32
FINANCIAL STATEMENTS................................................ 33
ILLUSTRATIONS.......................................................A-1
</TABLE>
[THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION
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 PROSPECTUS OF THE
TRUST OR THE STATEMENT OF ADDITIONAL INFORMATION OF THE TRUST.]
<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 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 any Beneficiary is 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.
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
service center or 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 Heritage I and the death of the last surviving Insured under Chubb
Heritage II.
Division--A separate division of Separate Account C which invests
exclusively in the shares of a specified Portfolio of the Trust.
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--On Chubb Heritage II, this will be calculated
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, minimum premiums 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
Heritage I and the younger Insured's 100th birthday for Chubb Heritage II.
Monthly Anniversary Date--The same day in each month as the Policy
Date.
Net Premium--The gross premium less a 2.5% state premium tax charge, a
1.25% Federal deferred acquisition cost tax charge and a 3% sales charge.
Owner (Policyowner)--The person or entity so designated in the
application or as subsequently changed.
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 Portfolio of the Trust.
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.
<PAGE>
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.
Surrender Charge--A sales charge assessed only upon surrender or
withdrawal.
Trust--Chubb Series Trust, a series mutual fund.
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.
<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 Heritage I provides life insurance coverage on one Insured, with
the Death Benefit payable upon the death of such Insured. Chubb Heritage 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 $500,000 for Chubb
Heritage I and $2,000,000 for Chubb Heritage II. 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 state premium
taxes, the Federal deferred acquisition cost tax charge and the sales charge
from each premium. Chubb Life then places the Net Premium into one or more of
the five Divisions and/or Chubb Life's General Account as directed by the
Policyowner. Each Division invests its assets in a corresponding Portfolio of
the Trust. 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 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. Prospective
Policyowners should be aware that there is no guarantee of Accumulation Value in
Separate Account C. See "POLICY BENEFITS AND RIGHTS--Death Benefits".
All persons insured must meet specified age limits and certain health
and other standards called "Underwriting Standards". The smoking status of the
Insureds is generally reflected in the cost of insurance rates. However, for
Chubb Heritage 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 $500. Chubb Life
reserves the right to limit the amount of any increase in premium payment.
The first premium is due on the Policy Date. The amount of the first
premium must be sufficient to keep the policy in force for three months.
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
<PAGE>
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
"Commission") of the management or investment practices or policies of
Separate Account C. Separate Account C is presently comprised of five Divisions,
each of which buys shares at net asset value of the corresponding portfolio (a
"Portfolio") of Chubb Series Trust (the "Trust").
What is Chubb Series Trust?
The Trust is registered as an open-end diversified management company
under the 1940 Act. Its shares are offered only to the Divisions, whether now in
existence or to be established by Chubb Life. The Trust's shares may also be
offered to other separate accounts which may be established by Chubb Life or its
affiliated insurance companies to fund variable life insurance policies and
variable annuity contracts.
The Trust presently has five classes of shares, each representing a
Portfolio having a specific investment objective. The present Portfolios of the
Trust are the Resolute Treasury Money Market Portfolio, the Resolute Bond
Portfolio, the Resolute Equity Portfolio, the Resolute Small Company Portfolio
and the Resolute International Equity Portfolio.
The investment manager to the Trust is Chubb Investment Advisory
Corporation ("Chubb Investment Advisory"), a subsidiary of Chubb Life. Chubb
Investment receives fees from the Trust for providing investment management
services. The fees range from .40 percent to .80 percent of average daily net
assets of the Portfolios. Morgan Guaranty Trust Company of New York ("Morgan")
provides sub-investment advisory services to the Trust. Morgan receives an
annual percentage fee from Chubb Investment for its services which in no way
increases the costs borne by the Trust, Separate Account C or the Policyowner.
See "CHUBB SERIES TRUST".
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 3% sales charge is deducted from each premium
payment. Also see below "Surrender or Withdrawal Charges".
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.
Charge for Mortality and Expense Risks. This charge is imposed daily
at an annual rate of .65% on the assets of each Division. Chubb Life will
realize income from this charge to the extent it is not needed to provide
benefits and pay expenses under the Policies.
Surrender or Withdrawal Charges. This 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.
<PAGE>
Administrative Charge for Withdrawal or Transfer. Chubb Life charges
$100 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 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.
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 Heritage I is the amount payable to the
named Beneficiary when the person
<PAGE>
insured under the Policy dies. The Death Benefit under Chubb Heritage II is the
amount payable to the named Beneficiary when the last surviving Insured dies.
The Death Benefit proceeds will equal the Death Benefit of the Policy, plus any
additional rider benefits included and then due, minus any outstanding Policy
Debt or unpaid cost of insurance charges or charges for riders.
Under Option I, the Death Benefit will be equal to the greater of the
Specified Amount or the Accumulation Value of the Policy on the date of death
multiplied by the corridor percentage. Under Option II, the Death Benefit is
equal to the Specified Amount plus the Accumulation Value of the Policy on the
date of death; provided, however, that under Option II, the Death Benefit can
never be less than the Accumulation Value on the date of death 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 the end of each policy year and all Policy Debt outstanding will be
deducted from proceeds payable at the Insured's death for Chubb Heritage I and
at the death of the last surviving Insured for Chubb Heritage 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.
<PAGE>
What transfers is a Policyowner allowed?
A Policyowner may transfer Accumulation Value among the Divisions and
among 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 a 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".
<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 insurance. 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 Commission under the 1940 Act and is subject to
that Act's requirements. Such registration does not involve supervision of the
management or investment policies of Separate Account C or Chubb Life by the
Commission. 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 Trust shares by each of the
Divisions.
Divisions. Separate Account C presently has five Divisions but may,
in the future, add or delete Divisions. Each Division will invest exclusively in
shares representing an interest in a Portfolio of the Trust.
Investment income and other distributions to each Division arising
from the applicable underlying Portfolio of the Trust 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.
CHUBB SERIES TRUST
Separate Account C invests in shares of the Trust which is organized
as a Delaware business trust and is registered as an open-end diversified
management company under the 1940 Act. The Trust currently has five Portfolios
each of which has different objectives. The shares of each Portfolio are
presently offered only to the Divisions, but may also be offered to other
separate accounts that may be established by Chubb Life or any of its affiliated
insurance companies. The assets of each Portfolio 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 investment manager to the Trust is Chubb Investment Advisory
Corporation ("Chubb Investment Advisory") which is a subsidiary of Chubb Life.
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 .40 percent of the average
daily net asset value of the Resolute Treasury Money Market Portfolio, .50
percent of the average daily net asset value of the Resolute Bond Portfolio, .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 the annual rate of .20 percent of the average
daily net asset value of the Resolute Treasury Money Market Portfolio, .30
percent of the average daily net asset value of the Resolute Bond Portfolio, .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.
<PAGE>
The investment objectives of each Portfolio are set forth below. 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 corresponding Division. For more detailed
information concerning each Portfolio, including a description of the investment
risks, reference is made to the Prospectus for the Trust which accompanies this
Prospectus, or the Statement of Additional Information for the Trust, available
upon request.
The Resolute Treasury Money Market Portfolio seeks to provide current
income, maintain a high level of liquidity and preserve capital.
The Resolute Bond Portfolio seeks to provide a high total return
consistent with moderate risk of capital and maintenance of liquidity.
The Resolute Equity Portfolio seeks to provide a high total return
from a portfolio comprised of selected equity securities.
The Resolute Small Company Portfolio seeks to provide a high total
return from a portfolio of equity securities of small companies.
The Resolute International Equity Portfolio seeks to provide a high
total return from a portfolio of equity securities of foreign corporations.
The Trust may find it necessary to take action to assure that the
Policy continues to qualify as a life insurance policy under federal tax laws.
The Trust, for example, may alter the investment objectives of any Portfolio or
take other appropriate actions. See "OTHER MATTERS--Additions, Deletions or
Substitutions of Investments" and "FEDERAL TAX MATTERS".
Separate Account C will purchase shares of the Trust at net asset
value in connection with premium payments, transfers and loan repayments
allocated to the Divisions in accordance with the Policyowner's directions and
will redeem shares of the Trust to process transfers, policy loans, surrenders
or withdrawals and generally to meet contract obligations or make adjustments in
reserves. The Trust will sell and redeem its shares at net asset value as of the
Date of Receipt by Separate Account C of premium payments or notifications by a
Policyowner.
<PAGE>
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 Heritage 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 Heritage 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 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 Heritage I
must generally be between the ages of 0 and 80 and the Insureds under Chubb
Heritage II must generally be between 20 and 85 with only one Insured over the
age of 80. The Joint Equal Age of the Insureds under Chubb Heritage 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 Heritage 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 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 $500,000 for Chubb Heritage I
and $2,000,000 for Chubb Heritage II. 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 good 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 an initial premium
payment sufficient to keep the Policy in force for at least three months, and
may also include limits on the total amount and frequency of payments in each
policy year. No premium payment may be less than $500. 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
<PAGE>
Lapse".
Guaranteed Death Benefit Premiums. If the Guaranteed Death Benefit
Rider is added to the Policy, the Death Benefit is guaranteed to never be less
than the Specified Amount, provided the Policyowner pays a cumulative minimum
premium. This cumulative minimum premium is based on Issue Age, sex, smoking
status and underwriting class of the Insured(s) as well as the Specified Amount
and Death Benefit option. The premium is increased for increases in the
Specified Amount. See "POLICY BENEFITS AND RIGHTS--Optional Insurance
Benefits".
Premium Limitations. If, at any time during the year, a premium has
been paid which would result in a Policy being deemed a modified endowment
contract, Chubb Life will so notify the Policyowner on the Policy's anniversary
date and allow the Policyowner to request a refund of the excess premium, or
other action, in order to avoid having the Policy be deemed to be a modified
endowment contract. A Policyowner, however, may choose to have the Policy be
deemed a modified endowment contract, and, in that case, Chubb Life will not
refund the premiums. See "FEDERAL TAX MATTERS--Policy Proceeds". Premium
payments less than the minimum amount of $500 will be returned to the
Policyowner.
Allocation of Premiums. Premium payments, net of the state premium
tax charge, the Federal DAC tax charge and the sales charge plus interest earned
prior to the Allocation Date, will be allocated on the Allocation Date among the
Divisions and the General Account in accordance with the directions of the
Policyowner, as contained in the application. Prior to the Allocation Date the
initial Net Premium will be held in Chubb Life's General Account. Any other
premiums received prior to the Allocation Date will also be held in the General
Account. 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. 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 among
the Divisions and the General Account by written notice to Chubb Life or by
telephone without payment of any fee or penalty.
The allocation of each Net Premium payment to a Division will be
determined first by multiplying the Net Premium payment by the fraction to be
allocated to each Division as the Policyowner directs to determine the portion
to be invested in the Division. Each portion to be invested in each Division is
then divided by the unit value of that particular Division to determine the
number of units to be credited to a Policyowner. The unit value of each Division
will vary to reflect the investment experience of the corresponding underlying
Portfolio shares. For a description of the method of determining unit values see
"CALCULATION OF ACCUMULATION VALUE--Unit Values". Applicants should refer to
the Prospectus for the Trust which accompanies this Prospectus for a description
of how the assets of each Portfolio are valued.
All valuations in connection with the Policy, e.g., with respect to
determining Cash Value in connection with policy loans or withdrawals, with
respect to determining Accumulation Value in connection with transfers or
payment of Death Benefits, and with respect to determining a Division's unit
value at the time of each Net Premium payment, will be made on the Date of
Receipt of the premium or the request for payment, loan, withdrawal or transfer
if such date is a Valuation Date; otherwise, such determination will be made on
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. The total amount transferred each time must be at least $1,000 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
<PAGE>
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 $100 to cover administrative costs will be imposed each time
amounts are transferred and 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
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.
A feature called Dollar Cost Averaging is available to Policyowners
under which a Policyowner deposits or designates an amount, subject to a minimum
of $6,000, in the Resolute Treasury Money Market Division or the General Account
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 $500. 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
Resolute Treasury Money Market Division or the General Account 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, a new
Dollar Cost Averaging election form must be completed if the Policyowner wishes
to have additional money dollar cost averaged. 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 to policyowners at no charge. Although Chubb Life reserves the right
to
<PAGE>
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.
A Policyowner may choose one of the two features. Transfers and
adjustments pursuant to these features 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 Heritage I or the last surviving Insured
under Chubb Heritage II dies during the grace period, the Death Benefit payable
under the Policy will be reduced by the amount of the monthly deduction 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
<PAGE>
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 Heritage I or the Insureds or
surviving Insured under Chubb Heritage 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 to
correspond with changes in the DAC tax.
Chubb Life will 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 3% sales charge and the sales 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 and expense risk charge.
Monthly Deduction. On each Monthly Anniversary Date and on the
Policy Date, Chubb Life will deduct from the Accumulation Value of a Policy an
amount to cover certain charges and expenses incurred in connection with the
Policy. The amount 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. The amount deducted will be deducted 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.
<PAGE>
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, 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 Heritage 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 Deduction Adjustment will be calculated at the
beginning of each policy year and subtracted from the cost of insurance for each
month of that policy year during which the discount is in effect. The discount
will be allocated between the Divisions and the General Account in the same
proportion as premium payments. The discount is calculated as (i) multiplied by
the result of (ii) minus (iii) minus (iv), but not less than zero, where:
(i) is a factor that varies by Specified Amount as follows :
Under $5,000,000 .0001250
$5,000,000 to $9,999,999 .0002500
$10,000,000 to $14,999,999 .0003750
$15,000,000 and Above .0004583
(ii) is an amount no greater than the Accumulation Value at the
beginning of the policy year, and guaranteed to be at least the Accumulation
Value at the beginning of the policy year less any unloaned funds in the General
Account;
(iii) 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;
and
(iv) is the outstanding Type A loan balance at the beginning of the
policy year. See "CASH VALUE BENEFITS--Policy Loans" for a description of Type A
loans.
The Monthly Deduction Adjustment is the mechanism whereby Chubb Life
annually evaluates its mortality risk exposure on individual Policies based on,
among other factors, the proceeds from all mortality charges, including the cost
of insurance charge and the mortality risk portion of the Risk Charge. The
insurance charges are set at rates designed to cover total anticipated mortality
experience, i.e., Death Benefit payments, taking into consideration the risk
that actual experience may exceed Chubb Life's expectation. Of course, as the
amount at risk under any one
<PAGE>
Policy decreases, i.e., Accumulation Value increases, Chubb Life's exposure on
such Policy will be reduced. Moreover, Chubb Life's risk decreases as the
Specified Amount increases. The Monthly Deduction Adjustment formula factors in
Accumulation Value and Specified Amount. Thus, the Monthly Deduction Adjustment
may be translated into a net reduction of the Risk Charge which is applied to
the Accumulation Value. As shown in the following table, the Monthly Deduction
Adjustment may be expressed as a reduction in the mortality portion of the Risk
Charge.
<TABLE>
<CAPTION>
Mortality Mortality
--------- ---------
Monthly Risk Risk
------- ---- ----
Mortality Deduction Charge Charge Effective
--------- --------- ------ ------ ---------
Risk Adjust- Below Above Mortality
---- ------- ----- ----- ---------
-------- Charge ment GSP GSP Risk Charge*
Specified Amount ------ ----- --- --- ------------
----------------
<S> <C> <C> <C> <C> <C>
$ 500,000--$ 4,999,999 .55% .15% .55% .40% .475%
$ 5,000,000--$ 9,999,999 .55% .30% .55% .25% .40%
$10,000,000--$14,999,999 .55% .45% .55% .10% .325%
$15,000,000 and Above . .55% .55% .55% .0% .275%
- -------------
</TABLE>
* Assumes that Accumulation Value, less any Type A loans, at the beginning of
the policy year is twice the Guideline Single Premium ("GSP").
Risk Charge. Chubb Life will also assess a charge on a daily basis
against each Division at an annual rate of .65% of the value of the Division to
compensate Chubb Life for its assumption of certain mortality and expense risks
in connection with the Policy. Specifically, Chubb Life bears the risk that the
total amount of Death Benefit payable under the Policy will be greater than
anticipated and Chubb Life also assumes the risk that the actual cost incurred
by it to administer the Policy will not be covered by charges assessed under the
Policy.
Surrender Charge. Upon surrender during the first five policy years,
Chubb Life will assess a contingent deferred sales charge. This contingent
deferred sales charge will be 5% of first year premiums for surrender during the
first policy year, 4% of first year premiums for surrender during the second
policy year, 3% of first year premiums for surrender during the third policy
year, 2% of first year premiums for surrender during the fourth policy year and
1% of first year premiums for surrender during the fifth policy year. 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 $100 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 $100 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 for
services provided by the Trust's investment manager and sub-investment adviser
and certain other operating expenses are deducted from the assets of each
Portfolio of the Trust. See "CHUBB SERIES TRUST".
<PAGE>
POLICY BENEFITS AND RIGHTS
Death Benefits. So long as it remains in force, Chubb Heritage I
provides for the payment of life insurance proceeds upon the death of the
Insured and Chubb Heritage 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 Heritage 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 Policies. 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 the option 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, as described below. 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, as described below.
Option I emphasizes the impact of investment experience on
Accumulation Value rather than insurance coverage because the Specified Amount
and the Death Benefit, generally, remain stable. Under Option I, as
Accumulation Value increases and Death Benefit does not increase, the amount at
risk decreases. Thus, the cost of insurance charges are imposed on a decreasing
amount. Option II emphasizes insurance coverage because favorable investment
experience adds to the Accumulation Value that provides an addition to the total
Death Benefit. Under Option II, favorable investment experience does not reduce
the amount at risk upon which cost of insurance charges are based.
The corridor percentage is a minimum ratio of Death Benefit to
Accumulation Value required pursuant to the cash value corridor test under
Section 7702 of the Code. The Policyowner has the option to select this minimum
corridor percentage under the Code or an alternative corridor percentage that
produces a higher corridor percentage beginning in policy year 25 which grades
back to the minimum corridor percentage at the Maturity Date. Use of the
alternative corridor percentage results in a higher ratio of Death Benefit to
Accumulation Value than that resulting from the use of the minimum corridor
percentage beginning in policy year 25. This higher ratio then gradually reduces
until, by the Maturity Date, it is equal to the ratio produced by use of the
minimum corridor percentage. Although use of the alternative corridor percentage
results in a higher Death Benefit than the minimum corridor percentage beginning
in policy year 25, this higher Death Benefit results in higher cost of insurance
charges which has the effect of reducing Accumulation Value and consequently
future Death Benefits.
The Policyowner will also choose from two Death Benefit qualification
tests available under a Policy. Once
<PAGE>
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.
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 Internal Revenue 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 the 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 Heritage I policy and a Chubb Heritage
II policy, with the same Specified Amounts and Accumulations Values. The Chubb
Heritage 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 Heritage 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.
Chubb Heritage I
<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 314% 215%
Death Benefit Option I 1,570,000 1,075,000
Death Benefit Option II 1,570,000 1,500,000
</TABLE>
<PAGE>
Chubb Heritage II
<TABLE>
<CAPTION>
Cash Value Guideline
Accumulation Test Premium Test
<S> <C> <C>
Specified Amount 2,000,000 2,000,000
Accumulation Value 1,000,000 1,000,000
Corridor Percentage 306% 150%
Death Benefit Option I 3,060,000 2,000,000
Death Benefit Option II 3,060,000 3,000,000
</TABLE>
The Death Benefit option in effect may be changed by sending Chubb
Life a written request for change. 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 $250,000 on Chubb Heritage I and $500,000 on Chubb
Heritage II. 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 $250,000 on Chubb Heritage I
and $500,000 on Chubb Heritage II. 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 discount, 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 future increased Planned Periodic Premiums.
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
<PAGE>
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 Heritage I and the
younger Insured's 100th birthday for Chubb Heritage 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 $.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 Heritage I and by Joint Equal Age at issue on
Chubb Heritage II.
(c) Policy Exchange Option Rider. This rider is available on Chubb
Heritage II provided both Insureds are insurable. It allows Chubb Heritage II to
be exchanged for two individual Chubb Heritage I policies, without evidence of
insurability, each with a face amount equal to one half of the Death Benefit
under Chubb Heritage 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. See "FEDERAL TAX MATTERS."
(e) Exchange of Insured Rider. This benefit is available under Chubb
Heritage I, and 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. A charge of $150 will be assessed for exercising the option. See
"FEDERAL TAX MATTERS."
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
<PAGE>
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 Option B, 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. For Option C, the withdrawal value will 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, 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.
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
<PAGE>
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 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 of
the Trust.
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
<PAGE>
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 .0017808% on a daily basis. This
corresponds to .65% on an annual basis for mortality and expense risks.
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 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 or make a withdrawal from the Policy at any
time by sending a written request along with the Policy 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 $5,000.
C. A charge equal to $100 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
<PAGE>
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 $250,000 for Chubb Heritage I and $500,000 for Chubb Heritage II. 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 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 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 Policy's 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. The
unloaned Type A balance is the Cash Value, less the threshold, and less the sum
of any outstanding Type A loans. The threshold is the Guideline Single Premium
for this policy at issue as defined in Section 7702 of the Internal Revenue Code
of 1986 entitled "Life Insurance Contract Defined." Any other loans are Type B
loans. A Type B loan is charged an interest rate of 6.85%. 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 will not have any such effect.
<PAGE>
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 Rights. To the extent required by law, Chubb Life will vote
the Trust shares held in the various Divisions at regular and special
shareholder meetings of the Trust 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 Trust 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 Trust for
determining shareholders eligible to vote at the meeting of the Trust. Voting
instructions will be solicited by written communications prior to such meeting
in accordance with procedures established by the Trust. Chubb Life will vote
Trust 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 Trust in accordance with applicable law. Each person having
a voting interest will receive proxy material, reports and other materials
relating to the Trust. 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
<PAGE>
instructions require that shares be voted so as to cause a change in
subclassification or investment objective of the Trust or disapprove an
investment advisory contract of the Trust. 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 Trust 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 the Trust should no longer be
available for investment or if, in the judgment of Chubb Life's management,
further investment in shares of the Trust 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
Commission, all to the extent required by the 1940 Act. Any surrender due to a
change in a Portfolio's investment policy will incur any applicable Surrender
Charges.
Each class of Trust shares is subject to certain investment
restrictions which may not be changed without the approval of the majority of
the holders of such class. See the accompanying Prospectus for the Trust.
Annual Report. Each year a report will be sent to the Policyowner
which shows the current Accumulation Value, Cash Value, premiums paid and all
charges since the last annual report as well as the balance of outstanding
policy loans. 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 Option I and Option II;
(7) increases or decreases in Specified Amount;
(8) withdrawals, surrenders or loans;
(9) receipt of loan repayments; and
(10) reinstatements; and
(11) redemptions due to insufficient funds.
<PAGE>
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. 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.
Under Chubb Heritage 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 Commission; (ii) the Commission by
order permits postponement for the protection of Policyowners; or (iii) an
emergency exists, as determined by the Commission, 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.
<PAGE>
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 advised
that the staff of the Securities and Exchange Commission 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 the 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.
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.
Premium Deposit Fund. As a convenience to Policyowners, Chubb Life
permits Policyowners to deposit
<PAGE>
funds in a premium deposit fund ("PDF"), subject to the terms and conditions of
the appropriate agreement. Funds deposited in the PDF earn interest at a minimum
annual rates of 4%, with interest credited on each monthly anniversary date.
Interest on these funds is not tax deferred and will be annually reported on
Form 1099 to the Policyowner. An amount equal to the Planned Periodic Premium
will be transferred on the Policy date to pay premiums on the Policy.
Policyowners may withdraw all or part of the funds from the PDF at any time. No
commissions are earned or paid until premium payments are made pursuant to
transfers from the PDF.
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 Securities and Exchange Commission 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. 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 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.
<PAGE>
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.
<PAGE>
MANAGEMENT OF CHUBB LIFE
Executive Officers and Directors of Chubb Life
Directors
<TABLE>
<CAPTION>
Principal Occupation and
------------------------
Name Business Address
- ---- ----------------
<C> <S>
John C. Beck.......... Managing Partner
Beck, Mack & Oliver
330 Madison Avenue-31st Floor
New York, NY 10017-5001
*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
Henry U. Harder....... Retired, Former Chairman
The Chubb Corporation
15 Mountain View Road
P.O. Box 1615
Warren, New Jersey 07061-1615
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 R.H. Macy & Co., Inc.
Herald Square--13th Floor
</TABLE>
<PAGE>
<TABLE>
<C> <S>
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
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
</TABLE>
<PAGE>
-------------
*Executive Officer of Chubb Life
Executive Officers (Other Than Directors)
<TABLE>
<CAPTION>
Name
- ----
<S> <C>
Theresa M. Stone........... President and Chief Executive Officer
David S. Fowler............ Vice Chairman
Randell G. Craig........... Executive Vice President and Chief Operating
Officer
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
Charles C. Cornelio........ Senior Vice President, Assistant Secretary and
Chief Administrative Officer
Ronald H. Emery............ Vice President
Gregory W. Johnson......... Senior Vice President
Vincent G. Mace, Jr........ Senior Vice President, Group Actuary
Warren L. Reynolds......... Senior Vice President
Arthur V. Anderson......... Vice President and Corporate Actuary
Douglas H. Blampied........ Vice President
Thomas M. Bodrogi.......... Vice President
Mark Connolly.............. Vice President
Edwin E. Creter............ Vice President
Ned I. Gerstman............ Vice President
Glenn Hilsinger............ Vice President
Donald M. Kane............. Vice President
Patrick A. Lang............ Vice President
Deborah A. Leitch.......... Vice President
Justin J. Manjorin......... Vice President
Donna L. Metcalf........... Vice President
Christopher J. Moakley.......... Vice President
Thomas E. Murphy, Jr. M.D....... Vice President, Associate Medical Director
Herbert B. Olson................ Vice President and Group Actuary
Robert R. Rodgers............... Vice President
Russell C. Simpson.............. Vice President and Treasurer
James S. Smith.................. Vice President
William A. Spencer.............. 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
</TABLE>
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.
<PAGE>
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. The Policyowner may also 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.
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
<PAGE>
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 retroactively 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 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 Heritage 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.
<PAGE>
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 contract. 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 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
<PAGE>
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 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 Heritage II for two
individual Chubb Heritage 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.
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 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.
<PAGE>
EXPERTS
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 Securities and
Exchange Commission under the Securities Act of 1933, as amended, with respect
to the Policy 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 Policy
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.
<PAGE>
(Financial Statements of Chubb Life Insurance Company
of America to be supplied here)
<PAGE>
Financial Statements of Chubb Separate Account C to be supplied here)
<PAGE>
PART II
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following pages and documents:
The facing sheet
The prospectus consisting of _______ pages
The undertaking to file reports
The undertaking pursuant to Rule 484(b)(1) under the Securities Act of 1933
regarding indemnification/2/
The signatures
Written consents of the following persons:
(a) Michael J. LeBoeuf, FSA, MAAA, contained in Exhibit 6 below.
(b) Ernst & Young LLP (to be filed by amendment)
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) 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.
(b) Not Applicable
(c) (i) Form of Distribution Agreement among Chubb Life Insurance Company
of America, Chubb Separate Account C, and Chubb Securities Corporation.
(ii) Specimen Variable Contracts Selling Agreement between Chubb
Securities Corporation and Selling Broker-Dealers.
(iii) Specimen District Manager's Agreement of Chubb Securities
Corporation.
(iv) Specimen Registered Representative's Agreement of Chubb Securities
Corporation.
(v) Schedule of Commissions.
(d) Not Applicable
(e) (i) Specimen flexible premium variable life insurance policy.
(ii) Specimen joint and last survivor flexible premium variable life
insurance policy.
(iii) Forms of Riders
<PAGE>
(f) (i) Amended and Restated Charter, with all amendments, of Chubb Life
Insurance Company of America (incorporated by reference to Exhibit 1(f)(i) of
Chubb Separate Account A's Post Effective Amendment No. 6 to the Registration
Statement on Form S-6, filed February 28, 1992, Registration No. 33-7734).
(ii) By-Laws of Chubb Life Insurance Company of America (incorporated
by reference to Exhibit 1(f)(ii) of Chubb Separate Account A's Post Effective
Amendment No. 6 to the Registration Statement on Form S-6, filed February 28,
1992, Registration No. 33-7734).
(g) Not Applicable
(h)
(i) Investment Management Agreement between Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute Treasury
Money Market Portfolio./1/
(ii) Investment Management Agreement tetween Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute Bond
Portfolio./1/
(iii) Investment Management Agreement between Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute Equity
Portfolio./1/
(iv) Investment Management Agreement tetween Chubb Series Trust and
Chubb Investment Advisory Corporation with respect to the Resolute Small Company
Portfolio./1/
(v) Form of Investment Management Agreement between Chubb Series Trust
and Chubb Investment Advisory Corporation with respect to the Resolute
International Equity Portfolio./1/
(vi) 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 Treasury Money Market Portfolio./1/
(vii) 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 Bond Portfolio./1/
(viii) 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./1/
(ix) 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./1/
(x) Sub-Investment Management Agreement among Chubb Series Trust,
Chubb Investment Advisory Corporation and Morgan Guaranty Trust Company of New
Yoerk with respect to the Resolute International Equity Portfolio./1/
(xi) Custodial Services Agreement between Chubb Series Trust, and
Morgan Guaranty Trust Company of New York./2/
(i) Not applicable
(j) Application
2. Specimen Policy (Same as 1(e)).
<PAGE>
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.
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.
11. Powers of Attorney.
12. Memorandum regarding reliance on Order of the Commission.
- -------------
/1/ Incorporated by reference to Registrant's 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.
/2/ Incorporated by reference to the Registration Statement on Form N-1A of
Chubb Series Trust, filed on December 10, 1993, File No. 33-72834.
<PAGE>
APPENDIX A
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 Trust. 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 Trust were a constant gross annual rate of 0%, 6%, and 12%. The
tables on pages A-2 through A-7 illustrate a Chubb Heritage I Policy issued to a
male, age 35, under a standard rate non-smoker underwriting risk classification.
The tables on pages A-8 through A-13 illustrate a Chubb Heritage II Policy
issued to a male, age 40, under a standard rate non-smoker underwriting risk
classification and a female, age 35, 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 which varies based on the
Specified Amount of the Policy. 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 whether Option I or
Option II death benefits are illustrated.
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
Trust, as a result of expenses paid by the Trust 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 .62% of the aggregate average daily
net assets of the Portfolios of the Trust plus an assumed charge of .30% of the
aggregate average daily net assets to cover expenses incurred by the Trust. The
.62% investment advisory fee is an average of the individual investment advisory
fees of the five Portfolios. See the attached Prospectus for the Trust for a
description of the assumption of expenses of the Trust in excess of specified
annual rates averaging .92%. The policy values also take into account a daily
charge to each Division of Separate Account C for assuming mortality and expense
risks which is equivalent to a charge at an annual rate of .65% 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. However, if, in
the future, any additional charges are made, the gross annual investment
<PAGE>
rate of return would have to exceed the stated investment rates by a sufficient
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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.43% net)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ----------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,889 11,289 1,000,000 10,598 9,998 1,000,000
2 25,830 24,942 24,462 1,000,000 22,240 21,760 1,000,000
3 39,721 39,222 38,862 1,000,000 35,006 34,646 1,000,000
4 54,308 54,902 54,662 1,000,000 49,010 48,770 1,000,000
5 69,623 72,153 72,033 1,000,000 64,367 64,247 1,000,000
6 85,704 91,142 91,142 1,000,000 81,217 81,217 1,000,000
7 102,589 112,047 112,047 1,000,000 99,695 99,695 1,000,000
8 120,319 135,064 135,064 1,000,000 119,983 119,983 1,000,000
9 138,935 160,437 160,437 1,000,000 142,256 142,256 1,000,000
10 158,481 188,428 188,428 1,000,000 166,765 166,765 1,000,000
11 179,006 219,332 219,332 1,000,000 193,737 193,737 1,000,000
12 200,556 253,431 253,431 1,000,000 223,440 223,440 1,000,000
13 223,184 291,071 291,071 1,000,000 256,176 256,176 1,000,000
14 246,943 332,626 332,626 1,000,000 292,283 292,283 1,000,000
15 271,890 378,525 378,525 1,000,000 332,129 332,129 1,000,000
16 298,084 429,258 429,258 1,000,000 376,143 376,143 1,000,000
17 325,589 485,339 485,339 1,000,000 424,782 424,782 1,000,000
18 354,468 547,360 547,360 1,000,000 478,566 478,566 1,000,000
19 384,791 616,006 616,006 1,010,250 (3) 538,101 538,101 1,000,000
20 416,631 691,909 691,909 1,086,297 (3) 604,069 604,069 1,000,000
25 601,361 1,206,747 1,206,747 1,617,041 (3) 1,053,653 1,053,653 1,411,895 (3)
30 837,129 2,046,775 2,046,775 2,497,066 (3) 1,783,123 1,783,123 2,175,410 (3)
35 1,138,036 3,410,991 3,410,991 3,956,750 (3) 2,957,401 2,957,401 3,430,585 (3)
40 1,522,077 5,634,671 5,634,671 6,029,098 (3) 4,859,059 4,859,059 5,199,193 (3)
45 2,012,222 9,292,629 9,292,629 9,757,260 (3) 7,978,349 7,978,349 8,377,266 (3)
50 2,637,785 15,172,546 15,172,546 15,931,173 (3) 12,926,274 12,926,274 13,572,588 (3)
55 3,436,179 24,475,817 24,475,817 25,699,608 (3) 20,591,742 20,591,742 21,621,329 (3)
60 4,455,155 39,656,182 39,656,192 40,052,744 (3) 33,058,411 33,058,411 33,388,995 (3)
65 5,755,655 65,667,815 65,667,815 65,667,815 (3) 54,754,873 54,754,873 54,754,873 (3)
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.43% net)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ---------------------------------------- -------------------------------------------
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 12,600 11,889 11,289 1,000,000 10,598 9,998 1,000,000
2 25,830 24,942 24,462 1,000,000 22,240 21,760 1,000,000
3 39,721 39,222 38,862 1,000,000 35,006 34,646 1,000,000
4 54,308 54,902 54,662 1,000,000 49,010 48,770 1,000,000
5 69,623 72,153 72,033 1,000,000 64,367 64,247 1,000,000
6 85,704 91,142 91,142 1,000,000 81,217 81,217 1,000,000
7 102,589 112,047 112,047 1,000,000 99,695 99,695 1,000,000
8 120,319 135,064 135,064 1,000,000 119,983 119,983 1,000,000
9 138,935 160,437 160,437 1,000,000 142,256 142,256 1,000,000
10 158,481 188,428 188,428 1,000,000 166,765 166,765 1,000,000
11 179,006 219,332 219,332 1,000,000 193,737 193,737 1,000,000
12 200,556 253,431 253,431 1,000,000 223,440 223,440 1,000,000
13 223,184 291,071 291,071 1,000,000 256,176 256,176 1,000,000
14 246,943 332,626 332,626 1,000,000 292,283 292,283 1,000,000
15 271,890 378,506 378,506 1,044,677 (3) 332,129 332,129 1,000,000
16 298,084 429,002 429,022 1,145,489 (3) 376,143 376,143 1,004,302 (3)
17 325,589 484,542 484,542 1,254,964 (3) 424,525 424,525 1,099,520 (3)
18 354,468 545,527 545,527 1,369,273 (3) 477,430 477,430 1,198,349 (3)
19 384,791 612,516 612,516 1,488,414 (3) 535,242 535,242 1,300,638 (3)
20 416,631 686,035 686,035 1,619,043 (3) 589,328 598,328 1,412,054 (3)
25 601,361 1,174,415 1,174,415 2,395,807 (3) 1,009,602 1,009,602 2,059,588 (3)
30 837,129 1,937,285 1,937,285 3,448,367 (3) 1,633,000 1,633,000 2,906,740 (3)
35 1,138,036 3,109,777 3,109,777 4,913,448 (3) 2,556,116 2,556,116 4,038,663 (3)
40 1,522,077 4,882,236 4,882,236 6,932,775 (3) 3,890,439 3,890,439 5,524,423 (3)
45 2,012,222 7,516,590 7,516,590 9,846,733 (3) 5,756,724 5,756,724 7,541,308 (3)
50 2,637,785 11,378,911 11,378,911 13,882,271 (3) 8,344,277 8,344,277 10,180,018 (3)
55 3,436,179 16,996,152 16,996,152 19,715,536 (3) 11,876,652 11,876,652 13,776,916 (3)
60 4,455,155 25,210,983 25,210,983 27,984,191 (3) 16,819,264 16,819,264 18,669,383 (3)
65 5,755,655 38,675,910 38,675,910 40,222,946 (3) 23,765,496 23,765,496 24,716,116 (3)
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.43% net)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ---------------------------------------- -------------------------------------------
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 12,600 11,232 10,632 1,000,000 9,980 9,380 1,000,000
2 25,830 22,886 22,406 1,000,000 20,339 19,859 1,000,000
3 39,721 34,926 34,566 1,000,000 31,067 30,707 1,000,000
4 54,308 47,410 47,170 1,000,000 42,175 41,935 1,000,000
5 69,623 60,381 60,261 1,000,000 53,663 53,543 1,000,000
6 85,704 73,862 73,862 1,000,000 65,542 65,542 1,000,000
7 102,589 87,869 87,869 1,000,000 77,806 77,806 1,000,000
8 120,319 102,420 102,420 1,000,000 90,478 90,478 1,000,000
9 138,935 117,543 117,543 1,000,000 103,554 103,554 1,000,000
10 158,481 133,248 133,248 1,000,000 117,058 117,058 1,000,000
11 179,006 149,589 149,589 1,000,000 130,982 130,982 1,000,000
12 200,556 166,567 166,567 1,000,000 145,345 145,345 1,000,000
13 223,184 184,209 184,209 1,000,000 160,171 160,171 1,000,000
14 246,943 202,530 202,530 1,000,000 175,475 175,475 1,000,000
15 271,890 221,553 221,553 1,000,000 191,258 191,258 1,000,000
16 298,084 241,320 241,320 1,000,000 207,538 207,538 1,000,000
17 325,589 261,831 261,831 1,000,000 224,298 224,298 1,000,000
18 354,468 283,096 283,096 1,000,000 241,523 241,523 1,000,000
19 384,791 305,161 305,161 1,000,000 259,210 259,210 1,000,000
20 416,631 328,038 328,038 1,000,000 277,337 277,337 1,000,000
25 601,361 455,706 455,706 1,000,000 374,631 374,631 1,000,000
30 837,129 608,857 608,857 1,000,000 482,974 482,974 1,000,000
35 1,138,036 798,003 798,003 1,000,000 602,430 602,430 1,000,000
40 1,522,077 1,044,509 1,044,509 1,117,625 (3) 732,862 739,862 1,000,000
45 2,012,222 1,355,354 1,355,354 1,423,122 (3) 923,168 923,168 1,000,000
50 2,637,785 1,728,429 1,728,429 1,814,850 (3) 1,186,691 1,186,691 1,246,026 (3)
55 3,436,179 2,165,255 2,165,255 2,273,518 (3) 1,487,141 1,487,141 1,561,498 (3)
60 4,455,155 2,711,988 2,711,988 2,739,108 (3) 1,865,265 1,865,265 1,883,918 (3)
65 5,755,655 3,456,221 3,456,221 3,456,221 (3) 2,396,803 2,396,803 2,396,803 (3)
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.43% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 11,232 10,632 1,000,000 9,980 9,380 1,000,000
2 25,830 22,886 22,406 1,000,000 20,339 19,859 1,000,000
3 39,721 34,926 34,566 1,000,000 31,067 30,707 1,000,000
4 54,308 47,410 47,170 1,000,000 42,175 41,935 1,000,000
5 69,623 60,381 60,261 1,000,000 53,663 53,543 1,000,000
6 85,704 73,862 73,862 1,000,000 65,542 65,542 1,000,000
7 102,589 87,869 87,869 1,000,000 77,806 77,806 1,000,000
8 120,319 102,420 102,420 1,000,000 90,478 90,478 1,000,000
9 138,935 117,543 117,543 1,000,000 103,554 103,554 1,000,000
10 158,481 133,248 133,248 1,000,000 117,058 117,058 1,000,000
11 179,006 149,589 149,589 1,000,000 130,982 130,982 1,000,000
12 200,556 166,567 166,567 1,000,000 145,345 145,345 1,000,000
13 223,184 184,209 184,209 1,000,000 160,171 160,171 1,000,000
14 246,943 202,530 202,530 1,000,000 175,475 175,475 1,000,000
15 271,890 221,553 221,553 1,000,000 191,258 191,258 1,000,000
16 298,084 241,320 241,320 1,000,000 207,538 207,538 1,000,000
17 325,589 261,831 261,831 1,000,000 224,298 224,298 1,000,000
18 354,468 283,096 283,096 1,000,000 241,523 241,523 1,000,000
19 384,791 305,161 305,161 1,000,000 259,210 259,210 1,000,000
20 416,631 328,038 328,038 1,000,000 277,337 277,337 1,000,000
25 601,361 455,706 455,706 1,000,000 374,631 374,631 1,000,000
30 837,129 607,707 607,707 1,081,718 (3) 482,974 482,974 1,000,000
35 1,138,036 781,696 781,696 1,235,080 (3) 602,430 602,430 1,000,000
40 1,522,077 975,214 975,214 1,384,804 (3) 737,165 737,165 1,046,774 (3)
45 2,012,222 1,185,093 1,185,093 1,552,472 (3) 873,884 873,884 1,144,788 (3)
50 2,637,785 1,408,456 1,408,456 1,718,316 (3) 1,008,611 1,008,611 1,230,505 (3)
55 3,436,179 1,644,401 1,644,401 1,907,505 (3) 1,137,833 1,137,833 1,319,886 (3)
60 4,455,155 1,899,760 1,899,760 2,108,734 (3) 1,272,413 1,272,413 1,412,378 (3)
65 5,755,655 2,262,145 2,262,145 2,352,631 (3) 1,415,829 1,415,829 1,472,462 (3)
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.57% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 10,574 9,974 1,000,000 9,362 8,762 1,000,000
2 25,830 20,910 20,430 1,000,000 18,514 18,034 1,000,000
3 39,721 30,955 30,595 1,000,000 27,433 27,073 1,000,000
4 54,308 40,754 40,514 1,000,000 36,115 35,875 1,000,000
5 69,623 50,332 50,212 1,000,000 44,545 44,425 1,000,000
6 85,704 59,693 59,693 1,000,000 52,720 52,720 1,000,000
7 102,589 68,833 68,833 1,000,000 60,619 60,619 1,000,000
8 120,319 77,747 77,747 1,000,000 68,247 68,247 1,000,000
9 138,935 86,441 86,441 1,000,000 75,583 75,583 1,000,000
10 158,481 94,902 94,902 1,000,000 82,636 82,636 1,000,000
11 179,006 103,144 103,144 1,000,000 89,374 89,374 1,000,000
12 200,556 111,128 111,128 1,000,000 95,787 95,787 1,000,000
13 223,184 118,852 118,852 1,000,000 101,866 101,866 1,000,000
14 246,943 126,295 126,295 1,000,000 107,599 107,599 1,000,000
15 271,890 133,451 133,451 1,000,000 112,960 112,960 1,000,000
16 298,084 140,334 140,334 1,000,000 117,939 117,939 1,000,000
17 325,589 146,901 146,901 1,000,000 122,484 122,484 1,000,000
18 354,468 153,116 153,116 1,000,000 126,541 126,541 1,000,000
19 384,791 158,979 158,979 1,000,000 130,073 130,073 1,000,000
20 416,631 164,449 164,449 1,000,000 133,013 133,013 1,000,000
25 601,361 184,725 184,725 1,000,000 136,983 136,983 1,000,000
30 837,129 187,488 187,488 1,000,000 115,002 115,002 1,000,000
35 1,138,036 161,198 161,198 1,000,000 45,616 45,616 1,000,000
40 1,522,077 83,045 83,045 1,000,000 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
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.57% net)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 10,574 9,974 1,000,000 9,362 8,762 1,000,000
2 25,830 20,910 20,430 1,000,000 18,514 18,034 1,000,000
3 39,721 30,955 30,595 1,000,000 27,433 27,073 1,000,000
4 54,308 40,754 40,514 1,000,000 36,115 35,875 1,000,000
5 69,623 50,332 50,212 1,000,000 44,545 44,425 1,000,000
6 85,704 59,693 59,693 1,000,000 52,720 52,720 1,000,000
7 102,589 68,833 68,833 1,000,000 60,619 60,619 1,000,000
8 120,319 77,747 77,747 1,000,000 68,247 68,247 1,000,000
9 138,935 86,441 86,441 1,000,000 75,583 75,583 1,000,000
10 158,481 94,902 94,902 1,000,000 82,636 82,636 1,000,000
11 179,006 103,144 103,144 1,000,000 89,374 89,374 1,000,000
12 200,556 111,128 111,128 1,000,000 95,787 95,787 1,000,000
13 223,184 118,852 118,852 1,000,000 101,866 101,866 1,000,000
14 246,943 126,295 126,295 1,000,000 107,599 107,599 1,000,000
15 271,890 133,451 133,451 1,000,000 112,960 112,960 1,000,000
16 298,084 140,334 140,334 1,000,000 117,939 117,939 1,000,000
17 325,589 146,901 146,901 1,000,000 122,484 122,484 1,000,000
18 354,468 153,116 153,116 1,000,000 126,541 126,541 1,000,000
19 384,791 158,979 158,979 1,000,000 130,073 130,073 1,000,000
20 416,631 164,449 164,449 1,000,000 133,013 133,013 1,000,000
25 601,361 184,725 184,725 1,000,000 136,983 136,983 1,000,000
30 837,129 187,488 187,488 1,000,000 115,002 115,002 1,000,000
35 1,138,036 161,198 161,198 1,000,000 45,616 54,616 1,000,000
40 1,522,077 83,045 83,045 1,000,000 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
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.43% net)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 11,884 11,284 1,011,884 10,581 9,981 1,010,581
2 25,830 24,924 24,444 1,024,924 22,181 21,701 1,022,181
3 39,721 39,176 38,816 1,039,176 34,875 34,515 1,034,875
4 54,308 54,810 54,570 1,054,810 48,768 48,528 1,048,768
5 69,623 71,990 71,870 1,071,990 63,963 63,843 1,063,963
6 85,704 90,879 90,879 1,090,879 80,584 80,584 1,080,584
7 102,589 111,642 111,642 1,111,642 98,751 98,751 1,098,751
8 120,319 134,467 134,467 1,134,467 118,623 118,623 1,118,623
9 138,935 159,583 159,583 1,159,583 140,347 140,347 1,140,347
10 158,481 187,232 187,232 1,187,232 164,142 164,142 1,164,142
11 179,006 217,693 217,693 1,217,693 190,194 190,194 1,190,194
12 200,556 251,212 251,212 1,251,212 218,721 218,721 1,218,721
13 223,184 288,101 288,101 1,288,101 249,964 249,964 1,249,946
14 246,943 328,687 328,687 1,328,687 284,190 284,190 1,284,190
15 271,890 373,339 373,339 1,373,339 321,673 321,673 1,321,673
16 298,084 422,488 422,488 1,422,488 362,737 362,737 1,362,737
17 325,589 476,548 476,548 1,476,548 407,688 407,688 1,407,688
18 354,468 535,987 535,987 1,535,987 456,864 456,864 1,456,864
19 384,791 601,362 601,362 1,601,362 510,649 510,649 1,510,649
20 416,631 673,241 673,241 1,673,241 569,439 569,439 1,569,439
25 601,361 1,154,925 1,154,925 2,154,925 956,199 956,199 1,956,199
30 837,129 1,925,035 1,925,035 2,925,035 1,557,704 1,557,704 2,557,704
35 1,138,036 3,153,626 3,153,626 4,153,626 2,486,839 2,486,839 3,486,839
40 1,522,077 5,111,847 5,111,847 6,111,847 3,916,015 3,916,015 4,916,015
45 2,012,222 8,235,316 8,235,316 9,235,316 6,101,350 6,101,350 7,101,350
50 2,637,785 13,223,549 13,223,549 14,223,549 9,460,416 9,460,416 10,460,416
55 3,436,179 21,217,875 21,217,875 22,278,769 (3) 14,635,597 14,635,597 15,635,597
60 4,455,155 34,099,224 34,099,224 35,099,224 22,747,472 22,747,472 23,747,472
65 5,755,655 55,121,888 55,121,888 56,121,888 34,536,114 34,536,114 35,536,114
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.43% net)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 11,884 11,284 1,011,884 10,581 9,981 1,010,581
2 25,830 24,924 24,444 1,024,924 22,181 21,701 1,022,181
3 39,721 39,176 38,816 1,039,176 34,875 34,515 1,034,875
4 54,308 54,810 54,570 1,054,810 48,768 48,528 1,048,768
5 69,623 71,990 71,870 1,071,990 63,963 63,843 1,063,963
6 85,704 90,879 90,879 1,090,879 80,584 80,584 1,080,584
7 102,589 111,642 111,642 1,111,642 98,751 98,751 1,098,751
8 120,319 134,467 134,467 1,134,467 118,623 118,623 1,118,623
9 138,935 159,583 159,583 1,159,583 140,347 140,347 1,140,347
10 158,481 187,232 187,232 1,187,232 164,142 164,142 1,164,142
11 179,006 217,693 217,693 1,217,693 190,194 190,194 1,190,194
12 200,556 251,212 251,212 1,251,212 218,721 218,721 1,218,721
13 223,184 288,101 288,101 1,288,101 249,964 249,964 1,249,964
14 246,943 328,687 328,687 1,328,687 284,190 284,190 1,284,190
15 271,890 373,339 373,339 1,373,339 321,673 321,673 1,321,673
16 298,084 422,488 422,488 1,422,488 362,737 362,737 1,362,737
17 325,589 476,548 476,548 1,476,548 407,688 407,688 1,407,688
18 354,468 535,987 535,987 1,535,987 456,864 456,864 1,456,864
19 384,791 601,362 601,362 1,601,362 510,649 510,649 1,510,649
20 416,631 673,241 673,241 1,673,241 569,439 569,439 1,569,439
25 601,361 1,153,156 1,153,156 2,352,438 (3) 956,199 956,199 1,956,199
30 837,129 1,903,542 1,903,542 3,388,305 (3) 1,550,039 1,550,039 2,759,069 (3)
35 1,138,036 3,056,878 3,056,878 4,829,867 (3) 2,429,884 2,429,884 3,839,217 (3)
40 1,522,077 4,800,413 4,800,413 6,816,586 (3) 3,701,802 3,701,802 5,256,559 (3)
45 2,012,222 7,391,817 7,391,817 9,683,280 (3) 5,480,985 5,480,985 7,180,090 (3)
50 2,637,785 11,191,207 11,191,207 13,653,273 (3) 7,947,921 7,947,921 9,696,464 (3)
55 3,436,179 16,716,957 16,716,957 19,391,670 (3) 11,315,793 11,315,793 13,126,320 (3)
60 4,455,155 24,798,012 24,798,012 27,525,793 (3) 16,028,280 16,028,280 17,791,391 (3)
65 5,755,655 38,043,579 38,043,579 39,565,322 (3) 22,518,295 22,518,295 23,518,295
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.43% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------- -------- -------- ----------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,227 10,627 1,011,227 9,963 9,363 1,009,963
2 25,830 22,870 22,390 1,022,870 20,286 19,806 1,020,286
3 39,721 34,886 34,526 1,034,886 30,954 30,594 1,030,954
4 54,308 47,332 47,092 1,047,332 41,972 41,732 1,041,972
5 69,623 60,249 60,129 1,060,249 53,336 53,216 1,053,336
6 85,704 73,656 73,656 1,073,656 65,050 65,050 1,065,050
7 102,589 87,565 87,565 1,087,565 77,100 77,100 1,077,100
8 120,319 101,989 101,989 1,101,989 89,501 89,501 1,089,501
9 138,935 116,950 116,950 1,116,950 102,237 102,237 1,102,237
10 158,481 132,451 132,451 1,132,451 115,324 115,324 1,115,324
11 179,006 148,540 148,540 1,148,540 128,735 128,735 1,128,735
12 200,556 165,203 165,203 1,165,203 142,473 142,473 1,142,473
13 223,184 182,456 182,456 1,182,456 156,544 156,544 1,156,544
14 246,943 200,297 200,297 1,200,297 170,945 170,945 1,170,945
15 271,890 218,732 218,732 1,218,732 185,650 185,650 1,185,650
16 298,084 237,788 237,788 1,237,788 200,652 200,652 1,200,652
17 325,589 257,432 257,432 1,257,432 215,894 215,894 1,215,894
18 354,468 277,641 277,641 1,277,641 231,315 231,315 1,231,315
19 384,791 298,430 298,430 1,298,430 246,863 246,863 1,246,863
20 416,631 319,765 319,765 1,319,765 262,451 262,451 1,262,451
25 601,361 433,616 433,616 1,433,616 338,430 338,430 1,338,430
30 837,129 552,741 552,741 1,552,741 400,033 400,033 1,400,033
35 1,138,036 662,057 662,057 1,662,057 419,427 419,427 1,419,427
40 1,522,077 733,419 733,419 1,733,419 348,473 348,473 1,348,473
45 2,012,222 719,005 719,005 1,719,005 100,770 100,770 1,100,770
50 2,637,785 537,640 537,640 1,537,640 0 0 0
55 3,436,179 67,926 67,926 1,067,926 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
</TABLE>
- -----------
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.43% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 11,227 10,627 1,011,227 9,963 9,363 1,009,963
2 25,830 22,870 22,390 1,022,870 20,286 19,806 1,020,286
3 39,721 34,886 34,526 1,034,886 30,954 30,594 1,030,954
4 54,308 47,332 47,092 1,047,332 41,972 41,732 1,041,972
5 69,623 60,249 60,129 1,060,249 53,336 53,216 1,053,336
6 85,704 73,656 73,656 1,073,656 65,050 65,050 1,065,050
7 102,589 87,565 87,565 1,087,565 77,100 77,100 1,077,100
8 120,319 101,989 101,989 1,101,989 89,501 89,501 1,089,501
9 138,935 116,950 116,950 1,116,950 102,237 102,237 1,102,237
10 158,481 132,451 132,451 1,132,451 115,324 115,324 1,115,324
11 179,006 148,540 148,540 1,148,540 128,735 128,735 1,128,735
12 200,556 165,203 165,203 1,165,203 142,473 142,473 1,142,473
13 223,184 182,456 182,456 1,182,456 156,544 156,544 1,156,544
14 246,943 200,297 200,297 1,200,297 170,945 170,945 1,170,945
15 271,890 218,732 218,732 1,218,732 185,650 185,650 1,185,650
16 298,084 237,788 237,788 1,237,788 200,652 200,652 1,200,652
17 325,589 257,432 257,432 1,257,432 215,894 215,894 1,215,894
18 354,468 277,641 277,641 1,277,641 231,315 231,315 1,231,315
19 384,791 298,430 298,430 1,298,430 246,863 246,863 1,246,863
20 416,631 319,765 319,765 1,319,765 262,451 262,451 1,262,451
25 601,361 433,616 433,616 1,433,616 338,430 338,430 1,338,430
30 837,129 552,741 552,741 1,552,741 400,033 400,033 1,400,033
35 1,138,036 662,057 662,057 1,662,057 419,427 419,427 1,419,427
40 1,522,077 733,419 733,419 1,733,419 348,473 348,473 1,348,473
45 2,012,222 719,005 719,005 1,719,005 100,770 100,770 1,100,770
50 2,637,785 537,640 537,640 1,537,640 0 0 0
55 3,436,179 67,925 67,925 1,067,925 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
</TABLE>
- -----------
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.57% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 10,570 9,970 1,010,570 9,346 8,746 1,009,346
2 25,830 20,895 20,415 1,020,895 18,466 17,986 1,018,466
3 39,721 30,920 30,560 1,030,920 27,334 26,974 1,027,334
4 54,308 40,689 40,449 1,040,689 35,945 35,705 1,035,945
5 69,623 50,225 50,105 1,050,225 44,283 44,163 1,044,283
6 85,704 59,533 59,533 1,059,533 52,341 52,341 1,052,341
7 102,589 68,606 68,606 1,068,606 60,095 60,095 1,060,095
8 120,319 77,437 77,437 1,077,437 67,550 67,550 1,067,550
9 138,935 86,032 86,032 1,086,032 74,681 74,681 1,074,681
10 158,481 94,373 94,373 1,094,373 81,493 81,493 1,081,493
11 179,006 102,474 102,474 1,102,474 87,951 87,951 1,087,951
12 200,556 110,291 110,291 1,110,291 94,041 94,041 1,094,041
13 223,184 117,817 117,817 1,117,817 99,749 99,749 1,099,749
14 246,943 125,027 125,027 1,125,027 105,062 105,062 1,105,062
15 271,890 131,908 131,908 1,131,908 109,946 109,946 1,109,946
16 298,084 138,474 138,474 1,138,474 114,388 114,388 1,114,388
17 325,589 144,671 144,671 1,144,671 118,327 118,327 1,118,327
18 354,468 150,454 150,454 1,150,454 121,700 121,700 1,121,700
19 384,791 155,819 155,819 1,155,819 124,458 124,458 1,124,458
20 416,631 160,713 160,713 1,160,713 126,521 126,521 1,126,521
25 601,361 176,578 176,578 1,176,578 124,405 124,405 1,124,405
30 837,129 171,005 171,005 1,171,005 93,342 93,342 1,093,342
35 1,138,036 131,201 131,201 1,131,201 14,605 14,605 1,014,605
40 1,522,077 37,393 37,393 1,037,393 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
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.57% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $12,000
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 12,600 10,570 9,970 1,010,570 9,346 8,746 1,009,346
2 25,830 20,895 20,415 1,020,895 18,466 17,986 1,018,466
3 39,721 30,920 30,560 1,030,920 27,334 26,974 1,027,334
4 54,308 40,689 40,449 1,040,689 35,945 35,705 1,035,945
5 69,623 50,225 50,105 1,050,225 44,283 44,163 1,044,283
6 85,704 59,533 59,533 1,059,533 52,341 52,341 1,052,341
7 102,589 68,606 68,606 1,068,606 60,095 60,095 1,060,095
8 120,319 77,437 77,437 1,077,437 67,550 67,550 1,067,550
9 138,935 86,032 86,032 1,086,032 74.681 74,681 1,074,681
10 158,481 94,373 94,373 1,094,373 81,493 81,493 1,081,493
11 179,006 102,474 102,474 1,102,474 87,951 87,951 1,087,951
12 200,556 110,291 110,291 1,110,291 94,041 94,041 1,094,041
13 223,184 117,817 117,817 1,117,817 99,749 99,749 1,099,749
14 246,943 125,027 125,027 1,125,027 105,062 105,062 1,105,062
15 271,890 131,908 131,908 1,131,908 109,946 109,946 1,109,946
16 298,084 138,474 138,474 1,138,474 114,388 114,388 1,114,388
17 325,589 144,671 144,671 1,144,671 118,327 118,327 1,118,327
18 354,468 150,454 150,454 1,150,454 121,700 121,700 1,121,700
19 384,791 155,819 155,819 1,155,819 124,458 124,458 1,124,458
20 416,631 160,713 160,713 1,160,713 126,521 126,521 1,126,521
25 601,361 176,578 176,578 1,176,578 124,405 124,405 1,124,405
30 837,129 171,005 171,005 1,171,005 93,342 93,342 1,093,342
35 1,138,036 131,201 131,201 1,131,201 14,605 14,605 1,014,605
40 1,522,077 37,393 37,393 1,037,393 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
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $12,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.43% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 16,473 15,673 2,000,000 16,469 15,669 2,000,000
2 34,440 34,658 34,018 2,000,000 34,640 34,000 2,000,000
3 52,962 54,731 54,251 2,000,000 54,688 54,208 2,000,000
4 72,410 76,888 76,568 2,000,000 76,804 76,484 2,000,000
5 92,831 101,346 101,186 2,000,000 101,200 101,040 2,000,000
6 114,272 128,340 128,340 2,000,000 128,109 128,109 2,000,000
7 136,786 158,134 158,134 2,000,000 157,788 157,788 2,000,000
8 160,425 191,044 191,044 2,000,000 190,544 190,544 2,000,000
9 185,246 227,417 227,417 2,000,000 226,720 226,720 2,000,000
10 211,309 267,617 267,617 2,000,000 266,671 266,671 2,000,000
11 238,674 312,047 321,047 2,000,000 310,789 310,789 2,000,000
12 267,408 361,151 361,151 2,000,000 359,508 359,508 2,000,000
13 297,578 415,418 415,418 2,000,000 413,305 413,305 2,000,000
14 329,257 475,393 475,393 2,000,000 472,708 472,708 2,000,000
15 362,520 541,675 541,675 2,000,000 538,301 538,301 2,000,000
16 397,446 614,927 614,927 2,000,000 610,731 610,731 2,000,000
17 434,118 695,884 695,884 2,000,000 690,714 690,714 2,000,000
18 472,624 785,361 785,361 2,000,000 779,048 779,048 2,000,000
19 513,055 884,260 884,260 2,000,000 876,617 876,617 2,000,000
20 555,508 993,584 993,584 2,000,000 984,410 984,410 2,000,000
25 801,815 1,739,992 1,739,992 2,331,589 (3) 1,719,966 1,719,966 2,304,754 (3)
30 1,116,173 2,970,855 2,970,855 3,624,443 (3) 2,929,025 2,929,025 3,573,411 (3)
35 1,517,381 4,993,425 4,993,425 5,792,373 (3) 4,901,565 4,901,565 5,685,815 (3)
40 2,029,436 8,313,895 8,313,895 8,895,868 (3) 8,117,110 8,117,110 8,685,308 (3)
45 2,682,963 13,772,855 13,772,855 14,461,498 (3) 13,381,804 13,381,804 14,050,894 (3)
50 3,517,046 22,609,479 22,609,479 23,739,953 (3) 21,785,629 21,785,629 22,874,910 (3)
55 4,581,572 36,699,450 36,699,450 38,534,423 (3) 34,882,959 34,882,959 36,627,107 (3)
60 5,940,206 59,721,351 59,721,351 60,318,565 (3) 56,073,587 56,073,587 56,634,323 (3)
65 7,674,207 98,881,578 98,881,578 98,881,578 (3) 92,848,050 92,848,050 92,848,050 (3)
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 12% (10.43% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 16,473 15,673 2,000,000 16,469 15,669 2,000,000
2 34,440 34,658 34,018 2,000,000 34,640 34,000 2,000,000
3 52,962 54,731 54,251 2,000,000 54,688 54,208 2,000,000
4 72,410 76,888 76,568 2,000,000 76,804 76,484 2,000,000
5 92,831 101,346 101,186 2,000,000 101,200 101,040 2,000,000
6 114,272 128,340 128,340 2,000,000 128,109 128,109 2,000,000
7 136,786 158,134 158,134 2,000,000 157,788 157,788 2,000,000
8 160,425 191,044 191,044 2,000,000 190,544 190,544 2,000,000
9 185,246 227,417 227,417 2,000,000 226,720 226,720 2,000,000
10 211,309 267,617 267,617 2,000,000 266,671 266,671 2,000,000
11 238,674 312,047 321,047 2,000,000 310,789 310,789 2,000,000
12 267,408 361,151 361,151 2,000,000 359,508 359,508 2,000,000
13 297,578 415,418 415,418 2,000,000 413,305 413,305 2,000,000
14 329,257 475,393 475,393 2,000,000 472,708 472,708 2,000,000
15 362,520 541,675 541,675 2,000,000 538,301 538,301 2,000,000
16 397,446 614,922 614,922 2,096,884 (3) 610,723 610,723 2,082,565 (3)
17 434,118 695,831 695,831 2,282,326 (3) 690,607 690,607 2,265,191 (3)
18 472,624 785,177 785,177 2,481,159 (3) 778,655 778,655 2,460,550 (3)
19 513,055 883,816 883,816 2,695,639 (3) 875,653 875,653 2,670,742 (3)
20 555,508 992,696 992,696 2,908,599 (3) 982,473 982,473 2,878,646 (3)
25 801,815 1,730,519 1,730,519 4,222,466 (3) 1,699,234 1,699,234 4,146,131 (3)
30 1,116,173 2,927,639 2,927,639 6,001,660 (3) 2,836,290 2,836,290 5,814,395 (3)
35 1,517,381 4,843,476 4,843,476 8,476,083 (3) 4,589,733 4,589,733 8,032,033 (3)
40 2,029,436 7,853,035 7,853,035 11,936,613 (3) 7,205,453 7,205,453 10,952,289 (3)
45 2,682,963 12,449,228 12,449,228 16,930,950 (3) 10,934,736 10,934,736 14,871,241 (3)
50 3,517,046 19,253,818 19,253,818 24,067,273 (3) 16,078,362 16,078,362 20,097,953 (3)
55 4,581,572 29,246,484 29,246,484 34,218,386 (3) 23,095,161 23,095,161 27,021,338 (3)
60 5,940,206 44,283,787 44,283,787 49,155,004 (3) 32,812,245 32,812,245 36,421,592 (3)
65 7,674,207 68,888,970 68,888,970 71,644,529 (3) 46,428,308 46,428,308 48,285,440 (3)
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 6% (4.43% NET)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 15,578 14,778 2,000,000 15,574 14,774 2,000,000
2 34,440 31,840 31,200 2,000,000 31,823 31,183 2,000,000
3 52,962 48,814 48,334 2,000,000 48,774 48,294 2,000,000
4 72,410 66,532 66,212 2,000,000 66,453 66,133 2,000,000
5 92,831 85,023 84,863 2,000,000 84,890 84,873 2,000,000
6 114,272 104,320 104,320 2,000,000 104,113 104,113 2,000,000
7 136,786 124,456 124,456 2,000,000 124,149 124,149 2,000,000
8 160,425 145,466 145,466 2,000,000 145,030 145,030 2,000,000
9 185,246 167,390 167,390 2,000,000 166,791 166,791 2,000,000
10 211,309 190,295 190,295 2,000,000 189,491 189,491 2,000,000
11 238,674 214,221 214,221 2,000,000 213,164 213,164 2,000,000
12 267,408 239,209 239,209 2,000,000 237,844 237,844 2,000,000
13 297,578 265,303 265,303 2,000,000 263,564 263,564 2,000,000
14 329,257 292,546 292,546 2,000,000 290,354 290,354 2,000,000
15 362,520 320,983 320,983 2,000,000 318,246 318,246 2,000,000
16 397,446 350,659 350,659 2,000,000 347,270 347,270 2,000,000
17 434,118 381,620 381,620 2,000,000 377,453 377,453 2,000,000
18 472,624 413,914 413,914 2,000,000 408,823 408,823 2,000,000
19 513,055 447,588 447,588 2,000,000 441,402 441,402 2,000,000
20 555,508 482,689 482,689 2,000,000 475,215 475,215 2,000,000
25 801,815 681,368 681,368 2,000,000 663,443 663,443 2,000,000
30 1,116,173 923,291 923,291 2,000,000 884,280 884,280 2,000,000
35 1,517,381 1,214,945 1,214,945 2,000,000 1,135,296 1,135,296 2,000,000
40 2,029,436 1,568,431 1,568,431 2,000,000 1,418,024 1,418,024 2,000,000
45 2,682,963 2,018,818 2,018,818 2,119,759 (3) 1,756,557 1,756,557 2,000,000
50 3,517,046 2,579,752 2,579,752 2,708,740 (3) 2,226,128 2,226,128 2,337,434 (3)
55 4,581,572 3,242,659 3,242,659 3,404,792 (3) 2,772,023 2,772,023 2,910,624 (3)
60 5,940,206 4,069,400 4,069,400 4,110,094 (3) 3,449,339 3,449,339 3,483,832 (3)
65 7,674,207 5,175,815 5,175,815 5,175,815 (3) 4,399,996 4,399,996 4,399,996 (3)
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 6% (4.43% NET)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 15,578 14,778 2,000,000 15,574 14,774 2,000,000
2 34,440 31,840 31,200 2,000,000 31,823 31,183 2,000,000
3 52,962 48,814 48,334 2,000,000 48,774 48,294 2,000,000
4 72,410 66,532 66,212 2,000,000 66,453 66,133 2,000,000
5 92,831 85,023 84,863 2,000,000 84,890 84,730 2,000,000
6 114,272 104,320 104,320 2,000,000 104,113 104,113 2,000,000
7 136,786 124,456 124,456 2,000,000 124,149 124,149 2,000,000
8 160,425 145,466 145,466 2,000,000 145,030 145,030 2,000,000
9 185,246 167,390 167,390 2,000,000 166,791 166,791 2,000,000
10 211,309 190,295 190,295 2,000,000 189,491 189,491 2,000,000
11 238,674 214,221 214,221 2,000,000 213,164 213,164 2,000,000
12 267,408 239,209 239,209 2,000,000 237,844 237,844 2,000,000
13 297,578 265,303 265,303 2,000,000 263,564 263,564 2,000,000
14 329,257 292,546 292,546 2,000,000 290,354 290,354 2,000,000
15 362,520 320,983 320,983 2,000,000 318,246 318,246 2,000,000
16 397,446 350,659 350.659 2,000,000 347,270 347,270 2,000,000
17 434,118 381,620 381,620 2,000,000 377,453 377,453 2,000,000
18 472,624 413,914 413,914 2,000,000 408,823 408,823 2,000,000
19 513,055 447,588 447,588 2,000,000 441,402 441,402 2,000,000
20 555,508 482,689 482,689 2,000,000 475,215 475,215 2,000,000
25 801,815 681,368 681,368 2,000,000 663,443 663,443 2,000,000
30 1,116,173 923,291 923,291 2,000,000 884,280 884,280 2,000,000
35 1,517,381 1,214,945 1,214,945 2,124,778 (3) 1,135,296 1,135,296 2,000,000
40 2,029,436 1,553,039 1,553,039 2,360,619 (3) 1,410,685 1,410,685 2,144,241 (3)
45 2,682,963 1,929,545 1,929,545 2,624,181 (3) 1,685,049 1,685,049 2,291,667 (3)
50 3,517,046 2,326,957 2,326,957 2,908,696 (3) 1,941,947 1,941,947 2,427,434 (3)
55 4,581,572 2,745,442 2,745,442 3,212,167 (3) 2,179,698 2,179,698 2,550,247 (3)
60 5,940,206 3,218,536 3,218,536 3,572,575 (3) 2,414,268 2,414,268 2,679,837 (3)
65 7,674,207 3,864,822 3,864,822 4,019,415 (3) 2,658,873 2,658,873 2,765,228 (3)
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 0% (-1.57% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 14,683 13,883 2,000,000 14,679 13,879 2,000,000
2 34,440 29,129 28,489 2,000,000 29,113 28,473 2,000,000
3 52,962 43,341 42,861 2,000,000 43,302 42,822 2,000,000
4 72,410 57,321 57,001 2,000,000 57,248 56,928 2,000,000
5 92,831 71,070 70,910 2,000,000 70,949 70,789 2,000,000
6 114,272 84,590 84,590 2,000,000 84,404 84,404 2,000,000
7 136,786 97,883 97,883 2,000,000 97,611 97,611 2,000,000
8 160,425 110,947 110,947 2,000,000 110,567 110,567 2,000,000
9 185,246 123,786 123,786 2,000,000 123,268 123,268 2,000,000
10 211,309 136,396 136,396 2,000,000 135,711 135,711 2,000,000
11 238,674 148,780 148,780 2,000,000 147,890 147,890 2,000,000
12 267,408 160,944 160,944 2,000,000 159,805 159,805 2,000,000
13 297,578 172,893 172,893 2,000,000 171,453 171,453 2,000,000
14 329,257 184,622 184,622 2,000,000 182,820 182,820 2,000,000
15 362,520 196,124 196,124 2,000,000 193,889 193,889 2,000,000
16 397,446 207,392 207,392 2,000,000 204,637 204,637 2,000,000
17 434,118 218,415 218,415 2,000,000 215,040 215,040 2,000,000
18 472,624 229,181 229,181 2,000,000 225,068 225,068 2,000,000
19 513,055 239,675 239,675 2,000,000 234,685 234,685 2,000,000
20 555,508 249,880 249,880 2,000,000 243,850 243,850 2,000,000
25 801,815 295,726 295,726 2,000,000 280,989 280,989 2,000,000
30 1,116,173 328,950 328,950 2,000,000 294,995 294,995 2,000,000
35 1,517,381 337,708 337,708 2,000,000 259,825 259,825 2,000,000
40 2,029,436 295,464 295,464 2,000,000 118,963 118,963 2,000,000
45 2,682,963 134,309 134,309 2,000,000 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I; CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 0% (-1.57% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 14,683 13,883 2,000,000 14,679 13,879 2,000,000
2 34,440 29,129 28,489 2,000,000 29,113 28,473 2,000,000
3 52,962 43,341 42,861 2,000,000 43,302 42,822 2,000,000
4 72,410 57,321 57,001 2,000,000 57,248 56,928 2,000,000
5 92,831 71,070 70,910 2,000,000 70,949 70,789 2,000,000
6 114,272 84,590 84,590 2,000,000 84,404 84,404 2,000,000
7 136,786 97,883 97,883 2,000,000 97,611 97,611 2,000,000
8 160,425 110,947 110,947 2,000,000 110,567 110,567 2,000,000
9 185,246 123,786 123,786 2,000,000 123,268 123,268 2,000,000
10 211,309 136,396 136,396 2,000,000 135,711 135,711 2,000,000
11 238,674 148,780 148,780 2,000,000 147,890 147,890 2,000,000
12 267,408 160,944 160,944 2,000,000 159,805 159,805 2,000,000
13 297,578 172,893 172,893 2,000,000 171,453 171,453 2,000,000
14 329,257 184,622 184,622 2,000,000 182,820 182,820 2,000,000
15 362,520 196,124 196,124 2,000,000 193,889 193,889 2,000,000
16 397,446 207,392 207,392 2,000,000 204,637 204,637 2,000,000
17 434,118 218,415 218,415 2,000,000 215,040 215,040 2,000,000
18 472,624 229,181 229,181 2,000,000 225,068 225,068 2,000,000
19 513,055 239,675 239,675 2,000,000 234,685 234,685 2,000,000
20 555,508 249,880 249,880 2,000,000 243,850 243,850 2,000,000
25 801,815 295,726 295,726 2,000,000 280,989 280,989 2,000,000
30 1,116,173 328,950 328,950 2,000,000 294,995 294,995 2,000,000
35 1,517,381 337,708 337,708 2,000,000 259,825 259,825 2,000,000
40 2,029,436 295,464 295,464 2,000,000 118,963 118,963 2,000,000
45 2,682,963 134,309 134,309 2,000,000 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE 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 40 ANNUAL RATE OF RETURN: 12% (10.43% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 16,473 15,673 2,016,473 16,469 15,669 2,016,469
2 34,440 34,658 34,018 2,034,658 34,640 34,000 2,034,640
3 52,962 54,730 54,250 2,054,730 54,686 54,206 2,054,686
4 72,410 76,887 76,567 2,076,887 76,800 76,480 2,076,800
5 92,831 101,342 101,182 2,101,342 101,191 101,031 2,101,191
6 114,272 128,333 128,333 2,128,333 128,092 128,092 2,128,092
7 136,786 158,121 158,121 2,158,121 157,756 157,756 2,157,756
8 160,425 191,020 191,020 2,191,020 190,489 190,489 2,190,489
9 185,246 227,378 227,378 2,227,378 226,628 226,628 2,226,628
10 211,309 267,555 267,555 2,267,555 266,525 266,525 2,266,525
11 238,674 311,951 311,951 2,311,951 310,564 310,564 2,310,564
12 267,408 361,006 361,006 2,361,006 359,169 359,169 2,359,169
13 297,578 415,203 415,203 2,415,203 412,804 412,804 2,412,804
14 329,257 475,079 475,079 2,475,079 471,978 471,978 2,471,978
15 362,520 541,222 541,222 2,541,222 537,252 537,252 2,537,252
16 397,446 614,281 614,281 2,614,281 609,237 609,237 2,609,237
17 434,118 694,971 694,971 2,694,971 688,608 688,608 2,688,608
18 472,624 784,081 784,081 2,784,081 776,103 776,103 2,776,103
19 513,055 882,478 882,478 2,882,478 872,528 872,528 2,872,528
20 555,508 991,118 991,118 2,991,118 978,770 978,770 2,978,770
25 801,815 1,728,773 1,728,773 3,728,773 1,694,666 1,694,666 3,694,666
30 1,116,173 2,934,024 2,934,024 4,934,024 2,847,055 2,847,055 4,847,055
35 1,517,381 4,892,595 4,892,595 6,892,595 4,680,476 4,680,476 6,680,476
40 2,029,436 8,055,160 8,055,160 10,055,160 7,563,957 7,563,957 9,563,957
45 2,682,963 13,118,305 13,118,305 15,118,305 12,034,416 12,034,416 14,034,416
50 3,517,046 21,165,673 21,165,673 23,165,673 18,919,143 18,919,143 20,919,143
55 4,581,572 33,982,866 33,982,866 35,982,866 29,536,050 29,536,050 31,536,050
60 5,940,206 54,607,230 54,607,230 56,607,230 46,013,703 46,013,703 48,013,703
65 7,674,207 88,144,085 88,144,085 90,144,085 69,962,597 69,962,597 71,962,597
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE 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 40 ANNUAL RATE OF RETURN: 12% (10.43% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 16,473 15,673 2,016,473 16,469 15,669 2,016,469
2 34,440 34,658 34,018 2,034,658 34,640 34,000 2,034,640
3 52,962 54,730 54,250 2,054,730 54,686 54,206 2,054,686
4 72,410 76,887 76,567 2,076,887 76,800 76,480 2,076,800
5 92,831 101,342 101,182 2,101,342 101,191 101,031 2,101,191
6 114,272 128,333 128,333 2,128,333 128,092 128,092 2,128,092
7 136,786 158,121 158,121 2,158,121 157,756 157,756 2,157,756
8 160,425 191,020 191,020 2,191,020 190,489 190,489 2,190,489
9 185,246 227,378 227,378 2,227,378 226,628 226,628 2,226,628
10 211,309 267,555 267,555 2,267,555 266,525 266,525 2,266,525
11 238,674 311,951 311,951 2,311,951 310,564 310,564 2,310,564
12 267,408 361,006 361,006 2,361,006 359,169 359,169 2,359,169
13 297,578 415,203 415,203 2,415,203 412,804 412,804 2,412,804
14 329,257 475,079 475,079 2,475,079 471,978 471,978 2,471,978
15 362,520 541,222 541,222 2,541,222 537,252 537,252 2,537,252
16 397,446 614,281 614,281 2,614,281 609,237 609,237 2,609,237
17 434,118 694,971 694,971 2,694,971 688,608 688,608 2,688,608
18 472,624 784,081 784,081 2,784,081 776,103 776,103 2,776,103
19 513,055 882,478 882,478 2,882,478 872,528 872,528 2,872,528
20 555,508 991,118 991,118 2,991,118 978,770 978,770 2,978,770
25 801,815 1,727,838 1,727,838 4,215,925 (3) 1,692,926 1,692,926 4,130,739 (3)
30 1,116,173 2,923,257 2,923,257 5,992,677 (3) 2,826,126 2,826,126 5,793,558 (3)
35 1,517,381 4,836,375 4,836,375 8,463,656 (3) 4,573,637 4,573,637 8,003,865 (3)
40 2,029,436 7,841,666 7,841,666 11,919,332 (3) 7,180,521 7,180,521 10,914,392 (3)
45 2,682,963 12,431,345 12,431,345 16,906,629 (3) 10,897,228 10,897,228 14,820,230 (3)
50 3,517,046 19,226,299 19,226,299 24,032,874 (3) 16,023,531 16,023,531 20,029,414 (3)
55 4,581,572 29,204,819 29,204,819 34,169,638 (3) 23,016,718 23,016,718 26,929,560 (3)
60 5,940,206 44,220,836 44,220,836 49,085,128 (3) 32,701,113 32,701,113 36,298,235 (3)
65 7,674,207 68,791,182 68,791,182 71,542,829 (3) 46,047,005 46,047,005 48,047,005
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE 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 40 ANNUAL RATE OF RETURN: 6% (4.43% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 15,578 14,778 2,015,578 15,574 14,774 2,015,574
2 34,440 31,840 31,200 2,031,840 31,823 31,183 2,031,823
3 52,962 48,814 48,334 2,048,814 48,772 48,292 2,048,772
4 72,410 66,530 66,210 2,066,530 66,450 66,130 2,066,450
5 92,831 85,020 84,860 2,085,020 84,883 84,723 2,084,883
6 114,272 104,314 104,314 2,104,314 104,099 104,099 2,104,099
7 136,786 124,446 124,446 2,124,446 124,125 124,125 2,124,125
8 160,425 145,448 145,448 2,145,448 144,989 144,989 2,144,989
9 185,246 167,363 167,363 2,167,363 166,726 166,726 2,166,726
10 211,309 190,253 190,253 2,190,253 189,392 189,392 2,189,392
11 238,674 214,158 214,158 2,214,158 213,017 213,017 2,213,017
12 267,408 239,118 239,118 2,239,118 237,631 237,631 2,237,631
13 297,578 265,172 265,172 2,265,172 263,260 263,260 2,263,260
14 329,257 292,363 292,363 2,292,363 289,928 289,928 2,289,928
15 362,520 320,729 320,729 2,320,729 317,658 317,658 2,317,658
16 397,446 350,311 350,311 2,350,311 346,465 346,465 2,346,465
17 434,118 381,147 381,147 2,381,147 376,363 376,363 2,376,363
18 472,624 413,277 413,277 2,413,277 407,360 407,360 2,407,360
19 513,055 446,735 446,735 2,446,735 439,453 439,453 2,439,453
20 555,508 481,557 481,557 2,481,557 472,637 472,637 2,472,637
25 801,815 677,090 677,090 2,677,090 653,924 653,924 2,653,924
30 1,116,173 908,661 908,661 2,908,661 852,846 852,846 2,852,846
35 1,517,381 1,167,582 1,167,582 3,167,582 1,037,732 1,037,732 3,037,732
40 2,029,436 1,423,356 1,423,356 3,423,356 1,137,238 1,137,238 3,137,238
45 2,682,963 1,593,526 1,593,526 3,593,526 995,684 995,684 2,995,684
50 3,517,046 1,510,956 1,510,956 3,510,956 359,382 359,382 2,359,382
55 4,581,572 951,419 951,419 2,951,419 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE 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 40 ANNUAL RATE OF RETURN: 6% (4.43% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 15,578 14,778 2,015,578 15,574 14,774 2,015,574
2 34,440 31,840 31,200 2,031,840 31,823 31,183 2,031,823
3 52,962 48,814 48,334 2,048,814 48,772 48,292 2,048,772
4 72,410 66,530 66,210 2,066,530 66,450 66,130 2,066,450
5 92,831 85,020 84,860 2,085,020 84,883 84,723 2,084,883
6 114,272 104,314 104,314 2,104,314 104,099 104,099 2,104,099
7 136,786 124,446 124,446 2,124,446 124,125 124,125 2,124,125
8 160,425 145,448 145,448 2,145,448 144,989 144,989 2,144,989
9 185,246 167,363 167,363 2,167,363 166,726 166,726 2,166,726
10 211,309 190,253 190,253 2,190,253 189,392 189,392 2,189,392
11 238,674 214,158 214,158 2,214,158 213,017 213,017 2,213,017
12 267,408 239,118 239,118 2,239,118 237,631 237,631 2,237,631
13 297,578 265,172 265,172 2,265,172 263,260 263,260 2,263,260
14 329,257 292,363 292,363 2,292,363 289,928 289,928 2,289,928
15 362,520 320,729 320,729 2,320,729 317,658 317,658 2,317,658
16 397,446 350,311 350,311 2,350,311 346,465 346,465 2,346,465
17 434,118 381,147 381,147 2,381,147 376,363 376,363 2,376,363
18 472,624 413,277 413,277 2,413,277 407,360 407,360 2,407,360
19 513,055 446,735 446,735 2,446,735 439,453 439,453 2,439,453
20 555,508 481,557 481,557 2,481,557 472,637 472,637 2,472,637
25 801,815 677,090 677,090 2,677,090 653,924 653,924 2,653,924
30 1,116,173 908,661 908,661 2,908,661 852,846 852,846 2,852,846
35 1,517,381 1,167,582 1,167,582 3,167,582 1,037,732 1,037,732 3,037,732
40 2,029,436 1,423,356 1,423,356 3,423,356 1,137,238 1,137,238 3,137,238
45 2,682,963 1,593,526 1,593,526 3,593,526 995,684 995,684 2,995,684
50 3,517,046 1,510,956 1,510,956 3,510,956 359,382 359,382 2,359,382
55 4,581,572 951,419 951,419 2,951,419 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE 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 40 ANNUAL RATE OF RETURN: 0% (-1.57% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 14,683 13,883 2,014,683 14,679 13,879 2,014,679
2 34,440 29,129 28,489 2,029,129 29,113 28,473 2,029,113
3 52,962 43,340 42,860 2,043,340 43,301 42,821 2,043,301
4 72,410 57,319 56,999 2,057,319 57,245 56,925 2,057,245
5 92,831 71,067 70,907 2,071,067 70,943 70,783 2,070,943
6 114,272 84,586 84,586 2,084,586 84,393 84,393 2,084,393
7 136,786 97,875 97,875 2,097,875 97,592 97,592 2,097,592
8 160,425 110,935 110,935 2,110,935 110,537 110,537 2,110,537
9 185,246 123,766 123,766 2,123,766 123,223 123,223 2,123,223
10 211,309 136,368 136,368 2,136,368 135,644 135,644 2,135,644
11 238,674 148,738 148,738 2,148,738 147,793 147,793 2,147,793
12 267,408 160,886 160,886 2,160,886 159,670 159,670 2,159,670
13 297,578 172,813 172,813 2,172,813 171,267 171,267 2,171,267
14 329,257 184,514 184,514 2,184,514 182,569 182,569 2,182,569
15 362,520 195,979 195,979 2,195,979 193,555 193,555 2,193,555
16 397,446 207,201 207,201 2,207,201 204,196 204,196 2,204,196
17 434,118 218,163 218,163 2,218,163 214,464 214,464 2,214,464
18 472,624 228,855 228,855 2,228,855 224,323 224,323 2,224,323
19 513,055 239,254 239,254 2,239,254 233,727 233,727 2,233,727
20 555,508 249,341 249,341 2,249,341 242,629 242,629 2,242,629
25 801,815 294,027 294,027 2,294,027 277,263 277,263 2,277,263
30 1,116,173 324,151 324,151 2,324,151 285,044 285,044 2,285,044
35 1,517,381 325,171 325,171 2,325,171 236,238 236,238 2,236,238
40 2,029,436 266,337 266,237 2,266,337 75,451 75,451 2,075,451
45 2,682,963 80,210 80,210 2,080,210 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE 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 40 ANNUAL RATE OF RETURN: 0% (-1.57% net)
FEMALE NON-SMOKER ISSUE AGE 35
$2,000,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM (1): $16,000
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 16,800 14,683 13,883 2,014,683 14,679 13,879 2,014,679
2 34,440 29,129 28,489 2,029,129 29,113 28,473 2,029,113
3 52,962 43,340 42,860 2,043,340 43,301 42,821 2,043,301
4 72,410 57,319 56,999 2,057,319 57,245 56,925 2,057,245
5 92,831 71,067 70,907 2,071,067 70,943 70,783 2,070,943
6 114,272 84,586 84,586 2,084,586 84,393 84,393 2,084,393
7 136,786 97,875 97,875 2,097,875 97,592 97,592 2,097,592
8 160,425 110,935 110,935 2,110,935 110,537 110,537 2,110,537
9 185,246 123,766 123,766 2,123,766 123,223 123,223 2,123,223
10 211,309 136,368 136,368 2,136,368 135,644 135,644 2,135,644
11 238,674 148,738 148,738 2,148,738 147,793 147,793 2,147,793
12 267,408 160,886 160,886 2,160,886 159,670 159,670 2,159,670
13 297,578 172,813 172,813 2,172,813 171,267 171,267 2,171,267
14 329,257 184,514 184,514 2,184,514 182,569 182,569 2,182,569
15 362,520 195,979 195,979 2,195,979 193,555 193,555 2,193,555
16 397,446 207,201 207,201 2,207,201 204,196 204,196 2,204,196
17 434,118 218,163 218,163 2,218,163 214,464 214,464 2,214,464
18 472,624 228,855 228,855 2,228,855 224,323 224,323 2,224,323
19 513,055 239,254 239,254 2,239,254 233,727 233,727 2,233,727
20 555,508 249,341 249,341 2,249,341 242,629 242,629 2,242,629
25 801,815 294,027 294,027 2,294,027 277,263 277,263 2,277,263
30 1,116,173 324,151 324,151 2,324,151 285,044 285,044 2,285,044
35 1,517,381 325,171 325,171 2,325,171 236,238 236,238 2,236,238
40 2,029,436 266,337 266,337 2,266,337 75,451 75,451 2,075,451
45 2,682,963 80,210 80,210 2,080,210 0 0 0
50 0 0 0 0 0 0 0
55 0 0 0 0 0 0 0
60 0 0 0 0 0 0 0
65 0 0 0 0 0 0 0
- -----------
</TABLE>
(1) Assumes a $16,000 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.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant,
Chubb Separate Account C, certifies that is meets the requirements of Securities
Act Rule 485(b) for effectiveness of this Post-Effective Amendment No. 1 to the
Registration Statement and has duly caused this Post-Effective Amendment No. 1
to the 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 day of April, 1995.
(Seal)
Chubb Separate Account C
(Registrant)
Chubb Life Insurance Company of America
(Depositor)
By: /s/ Frederick H. Condon
---------------------------------
Frederick H. Condon
Title: Senior Vice President,
General Counsel and Secretary
------------------------------
Attest:
/s/ Charles C. Cornelio
----------------------------------------
Charles C. Cornelio, Assistant Secretary
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Chubb Life
Insurance Company of America has duly caused this Post-Effective Amendment No. 2
to the 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 21st day of February, 1996.
CHUBB LIFE INSURANCE COMPANY OF AMERICA
By: /s/ Frederick H. Condon
-----------------------------------------
Frederick H. Condon
Title: Senior Vice President, General Counsel
and Secretary
--------------------------------------
ATTEST:
/s/ Charles C. Cornelio
- ----------------------------------------
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
---------- -----
*
- ------------------------------------ Director
John C. Beck
*
- ------------------------------------ Director, Vice Chairman
Percy Chubb, III
*
- ------------------------------------ Director
Joel J. Cohen
*
- ------------------------------------ Director
Henry U. Harder
*
- ------------------------------------ Director
David H. Hoag
*
- ------------------------------------ Director
Robert V. Lindsay
<PAGE>
Signatures Title
---------- -----
* Director
- ----------------------------------------
Thomas C. MacAvoy
* Director
- ----------------------------------------
Gertrude G. Michelson
* Director, Chairman
- ----------------------------------------
Dean R. O'Hare
* Director
- ----------------------------------------
Warren B. Rudman
* Director
- ----------------------------------------
Sir David G. Scholey, COE
* Director
- ----------------------------------------
Raymond G. H. Seitz
* Vice President and
- ---------------------------------------- Treasurer
Russell C. Simpson
* Director
- ----------------------------------------
Lawrence M. Small
* President and Chief
- ---------------------------------------- Executive Officer
Theresa M. Stone
* Executive Vice President
- ---------------------------------------- Chief Financial Officer
Richard V. Werner
* Director
- ----------------------------------------
Richard D. Wood
*By: /s/ Frederick H. Condon
------------------------------------------
Frederick H. Condon, Attorney-in-Fact,
the 21st day of February, 1996, pursuant
to Powers of Attorney filed as Exhibit
11 hereto.
<PAGE>
EXHIBIT INDEX
Sequentially
Numbered
Pages
------------
Exhibit 1(a) - Resolution of Executive Committee of
The Board of Directors of Chubb Life
Insurance Company of America
Exhibit 1(c) (i) - Form of Distribution Agreement Among
Chubb Life Insurance Company of America,
Chubb Separate Account C and Chubb
Securities Corporation
Exhibit 1(c) (ii) - Specimen Variable Contracts Selling
Agreement Between Chubb Securities
Corporation and Selling Broker-Dealers
Exhibit 1(c) (iii) - Specimen District Manager's Agreement
of Chubb Securities Corporation
Exhibit 1(c) (iv) - Specimen Registered Representative's
Agreement of Chubb Securities Corporation
Exhibit 1(c) (v) - Schedule of Commissions
Exhibit 1(e) (i) - Specimen Flexible Premium Variable Life
Insurance Policy
Exhibit 1(e) (ii) - Specimen Joint and Last Survivor Flexible
Premium Variable Life Insurance Policy
Exhibit 1(e) (iii) - Form of Riders
Exhibit 1(f) (i) - Amended and Restated Charter of Chubb
Life Insurance Company of America
Exhibit 1(f) (ii) - By-Laws of Chubb Life Insurance Company of
America
Exhibit 3 - Opinion of Counsel as to Securities Being
Registered
Exhibit 6 - Actuarial Opinions and Consents of
Michael J. LeBoeuf, FSA, MAAA
<PAGE>
EXHIBIT INDEX
Sequentially
Numbered
Pages
------------
Exhibit 9 - Representations, Descriptions and
Undertakings Regarding Mortality and
Expense Risk Charge, Pursuant to Rule
6e-3(T) (b) (13) (iii) (F)
Exhibit 10 - Reinsurance Agreement between Chubb Life
Insurance Company of America, of Concord
New Hampshire, hereinafter referred to as
the "Ceding Company,"
Exhibit 11 - Powers of Attorney
Exhibit 12 - Memorandum regarding reliance on Order
of the Commission
<PAGE>
Exhibit 1(a)
RESOLUTION
OF
EXECUTIVE COMMITTEE
OF
THE BOARD OF DIRECTORS
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
<PAGE>
I, Charles C. Cornelio, Assistant Secretary of Chubb Life Insurance Company of
America, do hereby certify that the following resolutions were adopted at a
meeting of the Executive Committee of the Board of Directors on August 4, 1993:
RESOLVED: That pursuant to the provision of Sections 408:23-26 of the New
Hampshire Revised Statutes Annotated, and any regulations promulgated
thereunder by the New Hampshire Commissioner of Insurance, the Board of
Directors of Chubb Life Insurance Company of America ("the Company") does hereby
establish a separate account to be known as "Chubb Separate Account C" for the
purpose of allocating thereto any amounts paid to or held by the Company in
connection with the issuance of variable life insurance policies (the
"Policies"), including but not limited to, amounts held under optional
settlement modes;
FURTHER RESOLVED: That the Chairman, the Vice Chairman, the President, any
Senior Vice President and the Treasurer, or any of them, (herein "Officers") be,
and they each hereby are, severally authorized and directed, in conjunction with
the Company's independent certified public accountants, legal counsel,
independent consultants and/or such others as they may deem appropriate, to take
such actions as they deem necessary or appropriate to receive approval of the
operation of Chubb Separate Account C by the New Hampshire Commissioner of
Insurance.
FURTHER RESOLVED: That the income, gains and losses, realized or unrealized, in
Chubb Separate Account C shall be credited to or charged against the amounts
allocated to the Chubb Separate Account C in accordance with the terms of the
Policies, without regard to other income, gains or losses of the Company;
FURTHER RESOLVED: That Separate Account C shall be legally segregated and the
assets and contract liabilities shall not be chargeable with liabilities arising
out of any other business which the Company may conduct and such assets shall
not be available to general creditors of the Company in the event of insolvency
of the Company to the full extent permitted by applicable law;
FURTHER RESOLVED: That Chubb Separate Account C shall be divided into divisions
and subdivisions so that each division or subdivision may invest in the shares
of designated investment companies with the net premiums received under the
policies as directed by the owners of said Policies;
FURTHER RESOLVED: That the Executive Committee of the Board of Directors be, and
it hereby is, expressly authorized in its discretion and as it may deem
appropriate from time to time in accordance with applicable laws and regulations
(a)
<PAGE>
-2-
to divide Chubb Separate Account C into one or more divisions or subdivisions,
(b) to modify, consolidate, or eliminate any such divisions or subdivisions, (c)
to change the designation of Chubb Separate Account C to another designation (d)
to further designate any divisions or subdivisions thereof, and (e) to take such
other action as may be required to further Chubb Separate Account C's compliance
with applicable state and federal laws;
FURTHER RESOLVED: That amounts allocated to Chubb Separate Account C and any
accumulations thereon, or to any division of Chubb Separate Account C, may be
invested or reinvested in any class of investments which may be authorized in
the Policies, including, but not limited to, shares of an investment company or
companies established pursuant to the Investment Company Act of 1940 and
regulations promulgated thereunder, without regard to any requirements or
limitations prescribed by the laws of the State of New Hampshire governing the
investments of life insurance companies; provided, that except with the approval
of the New Hampshire Commissioner, no reserves for:
(a) Benefits guaranteed as to amount and duration; and
(b) Funds guaranteed as to principal amounts or stated rate of interest
shall be maintained in Chubb Separate Account C;
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized and
directed to:
(a) Take all actions, or render all assistance, necessary or appropriate
to establish one or more investment companies to serve as the
underlying investment medium for Chubb Separate Account C, its
divisions or subdivisions, and to register such investment companies
under applicable state and federal laws and regulations;
(b) Execute such agreement or agreements as they deem necessary or
appropriate with one or more investment companies established pursuant
to the Investment Company Act of 1940 and regulations promulgated
thereunder;
FURTHER RESOLVED: That the Officers of the Company be, and they each hereby are,
severally authorized to invest cash in Chubb Separate Account C or in any
division thereof as may be deemed necessary or appropriate to facilitate the
commencement of Chubb Separate Account C's operations, including but not limited
to compliance with applicable tax laws, or to meet any minimum capital
requirements under the Investment Company Act of 1940 and to transfer cash or
<PAGE>
-3-
securities from time to time between the Company's general account and Chubb
Separate Account C as deemed necessary or appropriate so long as such transfers
are not prohibited by law and are consistent with the terms of the Policies;
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized
and directed, in conjunction with the Company's independent certified public
accountants, legal counsel, independent consultants or such others as they
deem appropriate to take such action as they deem necessary or appropriate to:
(a) Register Chubb Separate Account C as a unit investment trust under the
Investment Company Act of 1940, as amended;
(b) Register the Policies and such amounts, which may be indefinite
amounts, as the Officers shall from time to time deem appropriate
under the Securities Act of 1933; and
(c) Take all other action on behalf of Chubb Separate Account C and on
behalf of the Company as sponsor and depositor which in their judgment
may be necessary or appropriate in connection with the offering of
said Policies for sale and the operation of Chubb Separate Account C
in order to comply with the Investment Company Act of 1940, the
Securities Exchange Act of 1934, the Securities Act of 1933 and all
other applicable federal laws and regulations, including the filing of
any registration statements, amendments to registration statements,
notification of registration statements, any undertakings, and any
applications for exemptions from the Investment Company Act of 1940,
and amendments thereto, the Securities Act of 1933 or other applicable
federal laws and regulations;
FURTHER RESOLVED: That the President of the Company, and any Senior Vice
President of the Company, are duly appointed as agents for service of process
under such registration statements and duly authorized to receive communications
and notices from the Securities and Exchange Commission with respect thereto and
exercise any powers given to such agents by the rules and regulations under the
Securities Act of 1933 and applicable state law;
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized and
directed on behalf of Chubb Separate Account C and on behalf of the Company to
take any and all actions that any of them may deem necessary or advisable in
order to offer and sell the Policies, including any registrations, filings and
qualifications of the Company, its
<PAGE>
-4-
officers, agents and employees, Chubb Separate Account C and of the Policies,
under the insurance and securities laws of any state or any other jurisdiction,
and in connection therewith to prepare, execute, deliver and file all such
applications, reports, covenants, resolutions, applications for exemptions,
consents to service of process and other papers and instruments as may be
required under such laws, and to take any and all further actions which said
Officers or legal counsel for the Company may deem necessary or desirable in
order to maintain such registrations or qualifications for as long as said
Officers or legal counsel deem it to be in the best interest of Chubb Separate
Account C and the Company;
FURTHER RESOLVED: That any form of corporate resolution required by any State or
other jurisdiction in connection with any filing, registration, or approval as
contemplated in these resolutions is hereby adopted and the Officers be, and
they each hereby are, authorized to certify to the adoption thereof by this
Board;
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized in
the names and on behalf of Chubb Separate Account C and the Company to execute
and file irrevocable written consents to be used in such States and other
jurisdictions wherein such consents to service of process may be requisite under
the insurance or securities laws thereof in connection with such registration or
qualification of the Policies or Chubb Separate Account C and to appoint the
appropriate State or public official, or such other person that may be specified
by said insurance or securities laws, as agents of Chubb Separate Account C and
of the Company for the purpose of receiving and accepting process;
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized to
establish procedures to the extent required, or deemed appropriate, and subject
to the limitations of applicable law, for providing a pass-through of voting
rights for owners of the Policies with respect to the shares of an investment
company or companies, attributable to them, owned by Chubb Separate Account C;
FURTHER RESOLVED: That the following general Standard of Suitability, which
expresses the policy of the Company with respect to determining the suitability
for applicants be adopted: No recommendations shall be made to a potential
applicant to purchase a variable life insurance product and no variable life
insurance product shall be issued in the absence of reasonable grounds to
believe that the purchase of same is not unsuitable for such applicant on the
basis of information furnished after reasonable inquiry of such applicant
concerning the applicant's insurance and investment objective, financial
situation and needs, and any other information known to the Company or to the
sales
<PAGE>
-5-
representative making the recommendations;
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized and
directed to execute such agreement or agreements as they deem necessary or
appropriate:
(a) With Chubb Securities Corporation, or any other qualified entity,
under which Chubb Securities Corporation or such other entity will be
appointed principal underwriter and distributor for the Policies; and
(b) With one or more qualified banks or other qualified entities including
the Company or any of its affiliates to provide administrative and/or
custodial service in connection with the establishment and maintenance
of Chubb Separate Account C and the design, issuance and
administration of the Policies;
FURTHER RESOLVED: That the following binding Standards of Conduct applicable to
the Company, its officers, directors, employees, and affiliates ("Persons") with
respect to the purchase and sale of investments of Chubb Separate Account C be
adopted:
(1) No person shall engage in any action or activity which the Person has
reason to believe could in any way conflict with Chubb Separate
Account C's interest.
(2) No person, directly or indirectly, shall, in connection with any
transaction, (a) employ any device, scheme or artifice to defraud
Chubb Separate Account C (b) make to Chubb Separate Account C any
untrue statement of a material fact or omit to state to Chubb Separate
Account C a material fact necessary in order to make the statements
made, in light of the circumstances under which they are made, not
misleading; (c) engage in any act, practice or course of business
which operates or would operate as a fraud or deceit upon Chubb
Separate Account C, or (d) engage in any manipulative practice with
respect to the Chubb Separate Account C.
(3) No person shall accept, directly or indirectly, any gift, favor,
service, or anything of value from any broker, dealer or other person
which could be construed as being compensation for causing Chubb
Separate Account C to engage in any transaction with such broker,
dealer or other person.
(4) Each Person shall keep confidential all information
<PAGE>
-6-
regarding past or future transactions, investment programs and studies
of Chubb Separate Account C, except as may be required by applicable
law or as approved by the Company's Board of Directors.
FURTHER RESOLVED: That the Officers be, and they each hereby are, authorized
and directed on behalf of the Company to execute and deliver such agreements and
other documents and to do such acts and things as each of them may in their sole
discretion deem necessary or desirable to carry out the foregoing resolutions
and the intent and purposes thereof.
Date: November 30, 1993 /s/ Charles C. Cornelio
---------------------------- --------------------------------
Charles C. Cornelio
Assistant Secretary
<PAGE>
Exhibit 1(c) (i)
FORM
OF
DISTRIBUTION AGREEMENT
AMONG
CHUBB LIFE INSURANCE COMPANY OF AMERICA,
CHUBB SEPARATE ACCOUNT C
AND
CHUBB SECURITIES CORPORATION
<PAGE>
SEPARATE ACCOUNT DISTRIBUTION AGREEMENT
---------------------------------------
AMONG
-----
CHUBB SECURITIES CORPORATION,
-----------------------------
CHUBB LIFE INSURANCE COMPANY OF AMERICA
---------------------------------------
AND
---
CHUBB SEPARATE ACCOUNT C
------------------------
<PAGE>
SEPARATE ACCOUNT
----------------
DISTRIBUTION AGREEMENT
----------------------
AGREEMENT made this ______ day of _________, 1993, by and between CHUBB
SECURITIES CORPORATION, a corporation organized and existing under the laws of
the State of New Hampshire with its principal place of business in Concord, New
Hampshire (herein the "DISTRIBUTOR"), CHUBB LIFE INSURANCE COMPANY OF AMERICA,
an insurance company organized and existing under the laws of the State of New
Hampshire with its principal place of business in Concord, New Hampshire (herein
the "COMPANY"), and CHUBB SEPARATE ACCOUNT C, a separate account established
pursuant to the provisions of Section 408:23 et seq. of the New Hampshire
Revised Statutes Annotated and a registered investment company under the
Investment Company Act of 1940 (the "1940 Act") (herein the "Separate Account").
W I T N E S S E T H:
WHEREAS, the Company and the Separate Account propose to offer for sale
certain variable life insurance policies (together with any riders, the
"Policies") which may be deemed to be securities under the Securities Act of
1933 (the "1933 Act") and the laws of some states; and
WHEREAS, the Distributor, a wholly-owned subsidiary of Chubb Life Insurance
Company of America, is registered as a broker-dealer with the Securities and
Exchange Commission (the "SEC") under the Securities Exchange Act of 1934 (the
"1934 Act") and is a member of the National Association of
<PAGE>
Securities Dealers, Inc. (the "NASD"); and
WHEREAS, the parties desire to have the Distributor act as principal
underwriter for the Separate Account and assume full responsibility for the
securities activities of any "person associated" (as that term is defined in
Section 3(a)(18) of the 1934 Act) with the Distributor and engaged directly or
indirectly in the variable life insurance operation (the "Associated Persons");
and
WHEREAS, the parties desire to have the Company perform certain services in
connection with the sale of the Policies;
NOW, THEREFORE, in consideration of the covenants and mutual promises
herein contained and of other good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, the Distributor and the
Company agree as follows:
1. The Distributor will act as the exclusive principal underwriter during
the term of this Agreement in each state or other jurisdiction where the
Policies may legally be sold. The Distributor shall at all times function as and
be deemed to be an independent contractor and will be under no obligation to
effectuate any particular amount of sales of Policies or to promote or make
sales, except to the extent the Distributor deems advisable. Anything in this
Agreement to the contrary notwithstanding, the Company retains the ultimate
right to control the sale of the Policies, including the right to suspend sales
in any jurisdiction or jurisdictions, to appoint and discharge agents of the
-2-
<PAGE>
Company, or to refuse to sell a Policy to any applicant for any reason
whatsoever.
2. The Distributor will assume full responsibility for the securities
activities of, and for securities law compliance by, the Associated Persons,
including, as applicable, compliance with the NASD Rules of Fair Practice and
Federal and state laws and regulations. The Distributor, directly or through
the Company as its agent, will (a) make timely filings with the SEC, NASD, and
any other securities regulatory authorities of any sales literature or materials
relating to the Separate Account, as required by law to be filed, (b) make
available to the Company copies of any agreements or plans intended for use in
connection with the sale of the Policies in sufficient number and in adequate
time for clearance by the appropriate regulatory authorities before they are
used, and (c) train the Associated Persons, use its best efforts to prepare them
to complete satisfactorily any and all applicable NASD and state qualification
examinations, register the Associated Persons as its registered representatives
before they engage in securities activities, and supervise and control them in
the performance of such activities. In connection with the clearance by
appropriate regulatory authorities the parties agree to use their best efforts
to obtain such clearance by the appropriate regulatory authorities as
expeditiously as reasonably possible and shall not use any materials, plan or
agreement in any jurisdiction unless all filings have been
-3-
<PAGE>
made and approvals obtained that are necessary to make said use proper and legal
therein.
3. The Company shall undertake to appoint the Distributor's qualified
representatives as life insurance agents of the Company, and shall be
responsible for ensuring that only agents properly qualified under the insurance
laws of all relevant jurisdictions will engage in the offer and sale of
Policies. Completed applications for the Policy shall be transmitted directly
to the Company for acceptance or rejection in accordance with insurance
underwriting and selection rules established by the Company. Initial and
subsequent premium payments under the Policies shall be made payable to the
Company and shall be held in a fiduciary capacity for and forwarded to the
Company promptly (and, in any event, within not more than 30 days).
4. The Distributor shall take reasonable steps to ensure that the various
representatives appointed by it shall not make recommendations to an applicant
to purchase a Policy in the absence of reasonable grounds to believe that the
purchase of the Policy is suitable for said applicant. While not limited to the
following, a determination of suitability shall be based on information
furnished to a representative after reasonable inquiry of such applicant (and
any other information known about the applicant) concerning the applicant's
insurance and investment objectives and financial situation and needs, including
the likelihood that the applicant will make sufficient premium payments to
derive the
-4-
<PAGE>
benefits thereof.
No person shall use any sales aids, promotional material, or sales
literature which has not been specifically approved in advance by the Company,
and the Company will be responsible for filing such items, as necessary, with
any insurance regulatory authorities and, where necessary, obtaining approvals
of said authorities. No person shall, in connection with the offer or sale of
the Policies, make any representations or communicate any information regarding
the Policies or the Company, which are not contained in materials approved by
the Company as aforesaid or in the then-effective Registration Statement of the
Separate Account under the Securities Act of 1933.
5. As between the Company and the Distributor, the Company will, except as
otherwise provided in this Agreement, bear and/or reimburse the Distributor for
the cost of all services and expenses, including direct legal services and
expenses and registration, filing and other fees, in connection with (a)
registering and qualifying the Separate Account, the Policies, and (to the
extent requested by the Distributor) the Associated Persons with Federal and
state regulatory authorities and the NASD (including the training of Associated
Persons for this purpose), (b) printing, filing and distributing all
registration statements and prospectuses (including amendments), Policies,
notices, periodic reports, proxy solicitation material, sales literature and
advertising filed or distributed in connection with the sale of the
-5-
<PAGE>
Policies, (c) complying with the requirements of Section 7 below, and (d)
performing its obligations under its Distribution Agreement with Chubb Series
Trust, including, without limitation, the Distributor's obligations thereunder
to pay said trust's distribution expenses.
6. The Company will, in connection with the sale of the Policies,
reimburse the Distributor for all amounts (including the sales commissions and
managers' overrides described in the prospectus for the Policies) paid to the
sales representatives, managers, or to other broker-dealers who have entered
into selling agreements with the Distributor.
7. The Distributor, directly or through the Company as its agent, will (a)
maintain and preserve in accordance with Rules 17a-3 and 17a-4 under the 1934
Act all books and records required to be maintained in connection with the offer
and sale of the Policies being distributed pursuant to this Agreement, which
books and records shall remain the property of the Distributor and shall be
subject to inspection by the Securities and Exchange Commission in accordance
with Section 17(a) of the Act, and (b) upon or prior to completion of each
transaction for which a confirmation is legally required, send a written
confirmation for each such transaction reflecting the facts of the transaction.
All records maintained hereunder will be available to properly-constituted
governmental authorities, should the same be required to be filed with or
reviewed by
-6-
<PAGE>
said authorities. The Company shall have access to all records maintained
hereunder and, upon reasonable request, copies shall be furnished to the
Company.
8. The Distributor will execute such papers and do such acts and things as
shall from time to time be reasonably requested by the Company for the purpose
of (a) maintaining the registration of the Policies under the 1933 Act and the
Separate Account under the 1940 Act, and (b) qualifying and maintaining
qualification of the Policies for sale under the applicable laws of any state.
9. Each party hereto shall advise the other promptly of (a) any action of
the SEC or any authorities of any state or territory, of which it has knowledge,
affecting registration or qualification of the Separate Account or the Policies,
or the right to offer the Policies for sale, and (b) the happening of any event
which makes untrue any statement or which requires the making of any change, in
the registration statement or prospectus in order to make the statements therein
not misleading.
10. Neither party hereto shall be liable to the other for any action taken
or omitted by it, or any of its officers, agents or employees, in performing
their responsibilities under this Agreement in good faith and without
negligence, willful misfeasance or reckless disregard of such responsibilities.
11. As compensation for the Distributor's assuming the expenses and
performing the services to be assumed and
-7-
<PAGE>
performed by it pursuant to this Agreement, the Distributor shall receive from
the Company such amounts and at such times as may from time to time be agreed
upon by the Distributor and the Company.
12. As compensation for its services performed and expenses incurred under
this Agreement, the Company will receive all amounts charged as "Sales Charges"
under the Policies. It is understood that the Company assumes the risk that the
above compensation for its services may not prove sufficient to cover its actual
expenses in connection therewith.
13. It is understood that any Policyholder or agent of the Separate
Account may be a policyholder, shareholder, director, officer, employee or agent
of, or be otherwise interested in, the Distributor, any affiliated person of the
Distributor, any organization in which the Distributor may have an interest or
any organization which may have an interest in the Distributor; that the
Distributor, any such affiliated person or any such organization may have an
interest in the Separate Account; and that the existence of any such dual
interest shall not affect the validity hereof or of any transaction hereunder
except as may otherwise be provided in the articles of organization or by-laws
of the Distributor or by specific provisions of applicable law. For the purpose
of this Agreement, the term "affiliated persons" shall have its respective
meaning defined in the 1940 Act subject, however, to such exemptions as may be
granted by or
-8-
<PAGE>
pursuant to that Act.
14. This Agreement shall become effective as of the date of its execution,
shall continue in full force and effect until terminated, may be amended at any
time by mutual agreement of the parties hereto, and may be terminated at any
time without penalty on sixty days' written notice by any party to the others.
15. The Distributor will not assign or delegate its responsibilities under
this Agreement, except with the written consent of the Company.
16. This Agreement shall be construed in accordance with the laws of the
State of New Hampshire.
17. The Distributor shall keep confidential any information obtained
pursuant to this Agreement, and shall disclose such information only if the
Company has authorized such disclosure, or if such disclosure is expressly
required by applicable Federal or state authorities.
18. The Distributor, the Company and the Separate Account agree to
cooperate fully in any insurance regulatory examination, investigation, or
proceeding or any juridical proceeding arising in connection with the Policies.
The Distributor, the Company and the Separate Account further agree to cooperate
fully in any securities regulatory examination, investigation or proceeding or
any judicial proceeding with respect to the Company, the Separate Account, the
Distributor, their affiliates and their agents or representatives, to the extent
that such examination,
-9-
<PAGE>
investigation or proceeding is in connection with Policies distributed under
this Agreement. The Distributor shall furnish applicable Federal and state
regulatory authorities with any information or reports in connection with its
services under this Agreement, which authorities may request in order to
ascertain whether the Company's operations are being conducted in a manner
consistent with any applicable law or regulations.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.
CHUBB SECURITIES CORPORATION
BY:
----------------------------
TITLE:
-------------------------
CHUBB LIFE INSURANCE COMPANY OF AMERICA
BY:
----------------------------
TITLE:
-------------------------
CHUBB SEPARATE ACCOUNT C
BY:
----------------------------
TITLE:
-------------------------
-10-
<PAGE>
Exhibit 1(c) (ii)
SPECIMEN
VARIABLE CONTRACTS SELLING AGREEMENT
BETWEEN
CHUBB SECURITIES CORPORATION
AND
SELLING BROKER-DEALERS
<PAGE>
[LOGO OF CHUBB SECURITIES CORPORATION APPEARS HERE]
Chubb Securities Corporation
BROKER-DEALER AGREEMENT
THIS AGREEMENT is made by and between CHUBB SECURITIES CORPORATION, a
corporation organized and existing under the laws of the State of New Hampshire
with its principal place of business in Concord, New Hampshire (hereinafter
called "Chubb") and _________________________________________, a corporation
organized and existing under the laws of the State of
________________________________ (the "State") with its principal place of
business in _______________________________________ (hereinafter called
"Broker").
In consideration of the premises and the mutual agreements herein made, it is
agreed as follows:
EFFECTIVE DATE:
This agreement shall be effective as of _____________________, 19___.
BACKGROUND:
Chubb, pursuant to the provisions of that certain Distribution Agreement
dated as of February 27, 1985 between Chubb and Chubb Life Insurance Company of
America ("Chubb Life"), acts as distributor of certain flexible premium variable
life insurance policies issued by Chubb Life. Chubb desires that Broker
distribute such policies in _________________________________, and Broker
desires to sell such policies, through its agents in such states, on the terms
and conditions set forth hereinafter.
CONDITIONS:
1. Broker represents, warrants and covenants that:
a) It is and will remain at all times during the term of this Agreement a
member in good standing of the National Association of Securities Dealers, Inc.
("NASD") and a broker-dealer duly registered with the Securities and Exchange
Commission ("SEC") and licensed as a broker-dealer under applicable state
securities laws;
b) It is a corporation organized and existing in good standing under the
laws of the State and the execution and performance of this Agreement has been
duly authorized and will not violate any document or instrument to which it is a
party or by which it is bound;
-1-
<PAGE>
c) It is in compliance with the applicable net capital requirements of the
SEC, the NASD and applicable securities exchanges and that it will, if so
requested, provide to persons designated by Chubb copies of each Statement of
Financial Condition contained in Financial and Operational Combined Uniformed
Single ("FOCUS") report filed with the SEC and any other applicable regulatory
authority:
d) It will immediately notify Chubb should the capital percentage, capital
ratio, or dollar amount of required net capital exceed or fall below the
percentages or amounts required under any applicable net capital rule or
regulations;
e) It is in compliance, and at all times during the term of this Agreement
will remain in compliance, with the capital and financial requirements of every
state in which it is licensed as a broker-dealer;
f) It will notify Chubb immediately in the event a determination is made
to cancel, terminate or substantially modify its blanket bond insurance
coverage;
g) It will keep confidential any confidential information it may acquire
as a result of this Agreement regarding Chubb, its affiliates' and subsidiaries'
affairs, which requirement shall survive the termination of this Agreement;
h) Only representatives of Broker who are agents of Chubb Life, and duly
registered as such with states having jurisdiction over such representatives,
may sell such policies.
2. Chubb represents, warrants and covenants that:
a) It is and will remain at all times during the term of this Agreement a
member in good standing of the NASD and a broker-dealer duly registered with the
SEC and licensed as a broker-dealer under applicable state securities laws;
b) It is a New Hampshire corporation, and that the execution and
performance of this Agreement has been duly authorized;
c) It is in compliance, and during the term of this Agreement will remain
in compliance, with the capital and financial reporting requirements of the NASD
and the capital requirements of every state in which it is licensed as a broker-
dealer; and
d) It shall keep confidential any confidential information it may acquire
as a result of this Agreement regarding Broker's business and affairs, which
requirement shall survive termination of this Agreement.
3. Broker shall, except as hereinafter specifically provided, cause its
representatives to sell such policies in the state(s) designated in the preamble
to this Agreement and in which both Chubb and the policies are duly registered.
Chubb, in its sole discretion, may reject any applications for a policy
submitted to it by the Broker or any of its representatives.
-2-
<PAGE>
4. Chubb, subject to the terms and conditions contained herein, hereby
authorizes Broker as an independent contractor, to make sales of such policies
for which Chubb acts as a distributor. Broker agrees to direct the sales
activities of its Registered Representatives and to enforce written supervisory
procedures to assure strict compliance with applicable rules and regulations of
NASD, and any applicable state securities laws and regulations.
a) Broker shall have sole responsibility for maintaining an organized
program of supervision and compliance, consistent with the rules and regulations
of the SEC, the NASD, any applicable national securities exchanges and any state
securities regulatory agency having jurisdiction, with respect to the sale of
such policies. Such program shall include, but not be limited to, the following
types of procedures:
(i) Review, verification and approval of all new accounts and
applications for the purpose of establishing the identity, capacity to contract,
reputability, financial condition, creditworthiness, investment objectives and
needs of each customer (and if applicable, essential information concerning such
customer's agent); and obtaining and providing all documents and agreements
required in opening, operating and maintaining such a policy, including, but not
limited to, delivery of the current prospectus;
(ii) Review of all statements relating to each customer's policy;
(iii) Investigation and analysis of all bona fide customer complaints and
regulatory or customer inquiries relating to policies sold through Broker, with
prompt notification thereof to Chubb;
(iv) Registration of the firm as a broker-dealer and of sales personnel
in all states in which business is conducted and such registration is required.
5. Broker agrees to use its best efforts on behalf of Chubb while performing
the functions set forth herein. Broker agrees to promptly report and remit to
Chubb all checks, drafts or funds of any kind received from clients and in the
event of failure to do so, all rights hereunder, including all accrued and
accruing commissions, shall immediately terminate.
6. Broker shall be free to exercise its own judgment as to whom to solicit
and the time, place and manner of solicitation. Broker shall pay all expenses
incurred by it hereunder and shall comply with all federal and state laws,
ordinances and regulations relating thereto.
7. Broker hereby assigns to Chubb any and all commissions or other monies
now or hereafter owed to it, arising from the sale of such policies by its
authorized representatives or from any other business which Broker may do with
Chubb Life Insurance Company of America, or any subsidiary or affiliate thereof,
or their lawful successors, as security for repayment for any advance or other
extension of credit by Chubb to Broker.
- 3 -
<PAGE>
Broker hereby authorizes Chubb Life Insurance Company of America, or any of its
subsidiaries or affiliates, upon receipt of written demand by Chubb, to pay such
monies to Chubb, to the extent of Chubb's interest therein or, in the
alternative, Broker hereby grants to Chubb and its affiliates a right of offset
against such commissions or other monies due Broker, which right shall survive
the termination of this Agreement.
8. Except as otherwise stated herein, Broker shall be entitled to commissions
with respect to all sales of such policies it shall make in accordance with the
Commission Schedule attached hereto, which schedule may be modified at any time
by Chubb. All commissions are payable only upon receipt of full payment of
premiums due on such policies and are not paid until such premiums are earned.
Payments, if any, made to Broker's account in excess of commissions earned by it
in accordance with said Commission Schedule, as amended or supplemented, shall
be deemed an advance against future commissions and the amount of any such
excess shall be refunded to Chubb in the event of termination of this Agreement,
to the extent that such commissions have not been earned prior to such
termination.
In the event this Agreement is terminated by Chubb for cause, or Broker is
dissolved or liquidated, no further commissions will be payable to Broker
pursuant to this Agreement.
9. Chubb will, each month, furnish to Broker a statement of Broker's account
showing all earnings and payments made to its account allocated by
representative registered with Broker and the balance due from Chubb. Broker
agrees to notify Chubb, in writing, within 30 days, of any discrepancy or
disagreement with such statement in any respect, and in the absence of such
notice, such statement shall be conclusively presumed to be correct unless the
parties mutually agree to an adjustment in writing.
Notwithstanding anything to the contrary herein, Chubb shall have no
obligation hereunder to any registered representative of Broker.
10. Broker shall be responsible and liable for any damages arising out of the
acts or omissions of Broker, its registered representatives and/or its employees
and does hereby agree to indemnify and hold Chubb harmless against any loss or
expense arising out of or resulting from any failure by the indemnifying party
or any of its registered representatives and/or employees to carry out fully and
without negligence the duties and responsibilities assigned to it herein.
Chubb shall be responsible and liable for any damages arising out of the acts
or omissions of Chubb and/or its employees and does hereby agree to indemnify
and hold Broker harmless against any loss or expense arising out of or resulting
from any failure by the indemnifying party or any of its employees to carry out
fully and without negligence the duties and responsibilities assigned to it
herein.
-4-
<PAGE>
If any action or proceeding shall be brought against Chubb or Broker relating
to a policy sold pursuant to this Agreement, the party against whom such action
or proceeding is brought shall give prompt written notice to the other party to
this Agreement if a claim is intended to be asserted against such other party
with respect to indemnity against any loss or expense and such other party shall
be entitled to participate in the defense thereof at its own expense.
In the event of any dispute with a policyholder, Chubb shall have the right
to take such action as Chubb may in its sole discretion deem necessary to
promptly effect a mitigation of damages or limitation of losses without
obtaining the prior consent of Broker.
Chubb shall have the right to settle with any policyholder engaged in a
dispute with Chubb or Broker without the prior consent of Broker and without
waiving or electing to relinquish any rights or remedies Chubb may have against
Broker.
Without limiting the foregoing indemnities, Chubb and Broker each agree to
indemnify and hold harmless the other against any breach of representation,
warranty or covenant herein by the indemnifying party.
The indemnification provisions of this Agreement shall remain operative and
in full force and effect, regardless of the termination of this Agreement and
shall survive any such termination.
11. Broker shall submit to Chubb, for written approval in advance of use, all
advertising, signs and sales promotion material involving the use of Chubb's
name and/or the sale of such policies.
12. No relationship of principal and agent or partnership or joint venture
between the parties hereto is intended to be established and neither party shall
hold itself out as the agent, partner or joint ventures of or with the other
party in any respect whatsoever. Except for this Agreement, no other legal
relationship is intended between the parties.
13. This Agreement may be terminated at any time by either party upon thirty
(30) days written notice to the other, and may be terminated immediately by
Chubb for cause. For purposes of this Section 13, "cause" shall mean failure to
return money to clients where appropriate, failure to account for any money
received from or on behalf of Chubb, any fraud, misrepresentation or dishonesty
in any relationship with Chubb, its affiliates, or any past, present or proposed
client, violation of any federal or state law or regulation, or violation of any
of the terms of this contract.
Notice of such termination shall be deemed to be given on the day mailed or
delivered in hand to an officer of either party. If mailed to Chubb, such notice
shall be addressed to the principal office of Chubb, currently One Granite
Place, Concord, New Hampshire 03301, and if mailed to the Broker, shall be
addressed to the last known address as shown on the records of Chubb.
-5-
<PAGE>
14. Broker may not assign this Agreement without the prior written approval
of Chubb.
15. This Agreement is exclusively for and shall inure to the benefit of the
parties hereto, their respective heirs, legal representatives, successors and
assigns and shall not be deemed to create any rights for the benefit of third
parties.
16. This Agreement is made in the State of New Hampshire, and all questions
concerning its validity, construction or otherwise shall be determined under the
laws of New Hampshire.
IN WITNESS WHEREOF, the parties hereto have executed this agreement in
duplicate.
CHUBB SECURITIES CORPORATION
By
------------------------------
Date
----------------------------
BROKER
--------------------------------
By
------------------------------
Print Name
----------------------
Title
---------------------------
Date
----------------------------
R1D1A0282
-6-
<PAGE>
Exhibit 1(c)(iii)
SPECIMEN
DISTRICT MANAGER'S AGREEMENT
OF
CHUBB SECURITIES CORPORATION
<PAGE>
[LOGO OF CHUBB SECURITIES CORPORATION APPEARS HERE]
Chubb Securities Corporation
One Granite Place, P0 Box 2005
Concord, New Hampshire 03302
(603) 226-5000
DISTRICT MANAGER'S
AGREEMENT
This AGREEMENT is made by and between CHUBB SECURITIES CORPORATION, a
corporation organized and existing under the laws of the State of New Hampshire
with its principal place of business in Concord, New Hampshire (hereinafter
called the Company) and
--------------------------------------------------------
of (hereinafter called the District
- --------------------- -------------------------
Manager).
In consideration of the premises and the mutual agreements herein made, it is
agreed as follows:
Effective Date
The agreement shall be effective as of -----------------------------,19 .
------
Territory
It is agreed that the District Manager will represent the Company in the
State(s) of
---------------------------------------------------------------------
and any other state in which the District Manager becomes registered hereafter.
Terms
1. The Company, subject to the terms and conditions contained herein, hereby
authorizes the District Manager, as an independent contractor, to represent it
in the sale of securities for which the Company may now or hereafter act as
principal, dealer, wholesaler or underwriter. The District Manager agrees to
direct the sales activities of each Sales Representative assigned to the
District Manager's agency and further to enforce the Supervisory Procedures (and
any amendments thereto) issued by the Company from time to time in regard to
such Sales Representatives. The District Manager shall at all times act in
strict compliance with all state and federal securities laws, including but not
limited to the Federal Securities Act of 1933, as amended, and with the rules
and regulations of the National Association of Securities Dealers, Inc.
2. The Company reserves the right to accept or reject any or all business
submitted to it by the District Manager. In all cases in which the question of
credit for business, confirmation of orders, or compensation is not definitely
stipulated herein, the decision of the Company shall be final.
3. The District Manager agrees to use his/her best efforts on behalf of the
Company while so representing it, and will not engage in any employment by, or
representation of, any issuer of or dealer in securities other than those
offered by the Company without the written consent of the Company. The District
Manager agrees to promptly report and remit to the Company all checks, drafts or
funds of any kind received from customers without commingling same with the
District Manager's own funds, and in the event of failure to do so, all rights
hereunder, including all accrued and accruing commissions, shall immediately
terminate. If and when requested by the Company, the District Manager shall
furnish a surety bond satisfactory to the Company. This Agreement shall be
immediately and automatically cancelled upon cancellation of coverage by the
surety under said bond.
4. The District Manager shall be free to exercise his/her own judgment as to
whom to solicit and the time, place and manner of solicitation. The District
Manager shall pay all expenses in connection with conducting business as a Sales
Representative and shall comply with all federal and state laws,
ordinances and regulations relating thereto.
1
Form 3-0826 Ed. 12/89
<PAGE>
The District Manager shall make no solicitation for any securities until he/she
has been duly registered under the applicable state and federal laws, and until
any license or permit required by law has been obtained, and unless such
registration is then in effect.
5. The District Manager agrees that, in connection with all solicitations,
he/she will not take or recommend any action which they may have reason to
believe is not in the best interests of each client or customer. The District
Manager agrees not to make any untrue statement or misrepresentations, or omit
any material facts concerning the securities involved. The District Manager also
agrees to comply in all respects with the Rules of Fair Practice, and other
applicable rules of the National Association of Securities Dealers, Inc. and all
applicable federal and state laws.
6. The District Manager hereby assigns to the Company any and all commissions or
other monies owed to the District Manager under any contracts he/she may have
with the Chubb Life Insurance Company of America or any subsidiary or affiliate
thereof, as security for the repayment of any loan or extensions of credit made
to the customers of the District Manager at the District Manager's request or
for any losses incurred by the Company in any transaction. The District Manager
hereby authorizes Chubb Life Insurance Company of America, or any of its
subsidiaries or affiliates to pay such monies to the Company to the extent of
the Company's interest therein upon receipt of written demand by the Company.
7. If the District Manager's contract with Chubb Securities Corporation has not
been terminated, the District Manager shall be entitled to commissions with
respect to all sales the District Manager shall make in accordance with the
Commission Schedules issued from time to time by the Company and incorporated by
reference herein. All commissions are payable subject to receipt of full payment
for the securities sold. The District Manager hereby expressly waives all rights
to such earned commissions or other payments until such time as the Company is
in actual receipt of the concession due in respect to such sale. The amount of
any such excess shall be refunded to the Company in the event of termination of
this Agreement, to the extent that such commissions have not been earned prior
to such termination. Any indebtedness from the District Manager to the Company
shall be a first lien upon any amount due the District Manager hereunder.
8. The Company agrees that, if any Sales Representative assigned to the
District Manager's agency is terminated under any conditions or circumstances
which preclude the payment of commissions thereafter, then pursuant to Paragraph
8 of such Sales Representative's Agreement with the Company, the Company shall
pay to the District Manager the Sales Representative's commissions which become
due thereafter as personal production. The Company shall, then treat such
commissions as business personally produced by the District Manager.
9. If the District Manager either dies or retires after attaining the age of 55
or is permanently and totally disabled and terminates his license with the
National Association of Securities Dealers, Inc., the Company will continue to
pay commissions subject to the following conditions and limitations. If this
Agreement is terminated for any reason other than death, retirement or permanent
and total disability, then no commissions or other compensation shall be paid;
provided however, that if this Agreement is terminated for any reason other than
the National Association of Securities Dealers, Inc. disqualification, then
commissions will continue to be paid in accordance with the Supplemental
Commission Schedule (or any replacement thereof) on all premium payments
received by the Company on variable life insurance products.
Other than in the event of death, the District Manager must agree to the
continuance of this Agreement and must agree in writing not to solicit any new
securities business or to attempt to obtain a securities license through any
other entity.
If the District Manager so agrees, or in the event of death, the Company will
continue to pay to the District Manager or his/her estate, all commissions due
the District Manager totalling in excess of $100 per annum on business
personally produced by the District Manager. Commissions payable will be
determined based on New Customer Account forms executed prior to the termination
of his license. Commissions will be payable for a period not to exceed 10 years
from the date of termination or death. Commissions will be paid for the balance
of the calendar year at the rate currently in effect at the time of
termination. Thereafter, commissions will be paid at the appropriate
commission level as determined pursuant to the terms of the District Manager's
Commission Schedule.
The Company will not pay commissions to any District Manager who is
disqualified from association with any member of the National Association of
Securities Dealers, Inc. because of revocation, expulsion, suspension, or any
other reason, nor will the Company pay commissions in violation of any
applicable laws or regulations.
10. The Company will, each month, furnish to the District Manager a statement
of the District Manager's account showing all earnings and payments made to
his/her account and the balance due from the Company and the amount of any
indebtedness due from the District Manager to the Company. The District Manager
agrees to notify the Company, in writing,
2
<PAGE>
within 30 days, of any discrepancy or disagreement with such statement in any
respect. In the absence of such notice, such statement shall be conclusively
presumed to be correct unless the parties mutually agree to an adjustment in
writing.
11. The Company may offset against any commissions or other monies accruing to
the account of the District Manager under the terms of this Agreement any debts,
liabilities, or other obligations of the District Manager due to the Company or
any affiliate of the Company. This right of offset shall apply both during the
existence of this Agreement and upon its termination.
12. Any commissions or other compensation due to a Sales Representative
assigned to the District Manager's agency will be included in the commission
paid to the District Manager for payment to the Sales Representative, unless the
District Manager informs the Company in writing to pay commissions or other
compensation directly to the Sales Representative. The District Manager agrees
to pay commissions or other compensation to the Sales Representative in
accordance with the Commission Schedules issued by the Company.
13. The District Manager shall obtain and maintain for the term of this
Agreement errors and omissions insurance, satisfactory to the Company, and shall
provide proof of such coverage to the Company.
14. This Agreement may be terminated at any time by either party upon thirty
(30) days written notice to the other, and may be terminated immediately by the
Company for cause or breach of this Agreement by the District Manager. Notice of
such termination shall be deemed to be given on the day mailed or delivered. If
mailed to the Company, such notice shall be addressed to the principal office
of the Company at One Granite Place, Concord, New Hampshire 03301. If mailed to
the District Manager, notice shall be addressed to the last known address as
shown on the records of the Company.
15. With respect to any concession which the Company may receive as a
residual concession at the termination of a direct participation program, it
being understood that any such residual concession to the Company is contingent
in nature and there is no guarantee that the Company will ever actually receive
such payment, the Company will, upon receipt of such residual concession, pay
out a commission to the District Manager in accordance with the vesting schedule
as follows:
(i) If the District Manager has been under agreement with the Company for no
less than one nor more than five years, then he/she shall be vested to receive
any residual concession three years or more after the program sale is made;
(ii) If the District Manager has been under agreement with the Company for no
less than five nor more than ten years, he/she shall be vested to receive any
residual concession two years or more after the program sale is made; and
(iii) If the District Manager has been under agreement with the Company for more
than ten years, then he/she shall be vested to receive any residual concession
one year or more after the program sale is made; provided, however, that the
District Manager must continue to be under agreement with the Company for the
number of years set forth in the applicable portion of the above vesting
schedule after a program sale is made. If the District Manager does not remain
under agreement for the applicable number of years after a program sale is made,
then no residual concession shall be paid. The amount of the residual concession
commission paid shall be as set forth in the Commission Schedule in effect at
the time of the payment, but in no event will the commission be less than 75% of
the concession which the Company actually receives.
Payment of a commission to the District Manager out of any residual concessions
received by the Company will be considered as any other commission and all
provisions of this Agreement which relate to commissions will also apply to
these commissions, specifically including but not limited to the terms of
paragraphs 8 and 9.
16. This Agreement is made in the State of New Hampshire and all questions
concerning its validity, construction or otherwise shall be determined under the
laws of New Hampshire.
IN WITNESS WHEREOF, the parties hereto have executed this agreement in duplicate
as of the date first written below.
Chubb Securities Corporation District Manager
-------------------------
by:
---------------------------------- -----------------------------------------
Date: Date:
-------------------------------- ------------------------------------
Date:
-----------------------------
3
<PAGE>
[LOGO OF CHUBB SECURITIES CORPORATION APPEARS HERE]
Chubb Securities Corporation
One Granite Place, PO Box 2005
Concord, New Hampshire 03302
(603) 226-5000
DISTRICT MANAGER COMMISSION SCHEDULE
This Commission Schedule is a part of the District Manager's Agreement entered
into by the District Manager and the Company, is incorporated by reference
therein, and supersedes any prior schedule.
Commissions will be a percentage of total dealer concession actually paid to the
Company on all business produced personally by the District Manager or by any
and all Sales Representatives assigned to the District Manager for supervision.
Commissions will be paid on the following transactions:
1. Variable or Fixed Annuity and Mutual Fund Contractual Sales - Commissions
will be paid on first year and subsequent payments.
2. Private Placements - Commissions will be paid for all staged-in payments
as well as any residual benefits available to the District Manager. For the
purposes of computing commissions on private placements, the Company shall
retain one-third of any marketing or due diligence expense allowance (or
other terminology generally accepted to mean such a concept) paid on a per
unit basis in excess of 9%, and will pay commissions out of the balance.
3. General Securities Sales of Any Other Type - No commissions are payable on
the Execution fee collected from the customer. The company will pay
commissions in accordance with the schedule below, based on 80% of the dealer
concession generated from the general securities transactions, net of ticket
and administrative charges.
4. Mutual Funds, Public Limited Partnerships, Unit Investment Trusts.
5. Any Other Sales Made Available Through the Company's Facilities - In
accordance with Supplemental Commission Schedules.
During the first contract year (12 months following the date of full
registration with the Company), the District Manager will receive 40% of
Dealer Concession. A level in excess of 40% can be established during the first
contract year if the District Manager provides the Company with proof of
earnings from Securities Sales for a period immediately preceding registration
with the Company. This higher level of commission must be authorized in writing
by a Principal of the Company.
After the first contract year, a commission level will be established for future
commission payments on the basis of the Dealer Concession achieved by the
District Manager during the first contract year. The commission level for each
subsequent year will be established thereafter in January, based on the previous
calendar year's Dealer Concession.
Overriding commission has been incorporated in the below commission levels. Any
reference to overriding commissions in the District Manager's Agreement is
superseded by this Commission Schedule.
The Dealer Concession levels to establish commission rates are as follows:
Dealer Concession Commission Level
----------------- ----------------
Up to $10,000 40%
$10,000 to $24,999 60%
$25,000 to $49,999 75%
$50,000 to $74,999 77%
$75,000 to $124,999 80%
$125,000 to $199,999 82%
$200,000 to $499,999 85%
$500,000 to $749,999 87%
$750,000 and above 90%
The above commission levels are retroactive to all Dealer Concession earned
after January 1 of the then current year if a new commission level is attained
during any given calendar year.
4
Form 3-0826 Ed. 10/92
<PAGE>
Dealer Concession earned will be monitored to effect the change in commission
level as the District Manager becomes eligible for it. Once a higher commission
level has been achieved, it will be credited and paid on the following
commission statement.
Each District Manager's Dealer Concession production will be subject to review
on June 30th of each year. If the District Manager has not produced dealer
concession above 80% of the prorated minimum for the attained commission level,
the commission rate will be reduced on subsequent commissions earned to the
appropriate level. If the District Manager is still in the first contract year,
no reduction will take effect.
The District Manager shall be responsible for the payment of the Sales
Representative's commission from the commission paid to the District Manager.
Payment to the Sales Representative in excess of the standard commission set
forth in the Sales Representative's contract shall be permissible. Factors such
as sales ability, potential, and other factors may be taken into account in
making such payments to Sales Representatives assigned to the District Manager.
This Commission Schedule rescinds and replaces all prior commission Schedules
issued by the Company as of its effective date and will continue in effect until
such time as a new Schedule is issued by the Company.
Effective date of this Schedule: February 1, 1991.
5
Form 3-0826 Ed. 1/91
<PAGE>
Exhibit 1(c)(iv)
SPECIMEN
REGISTERED REPRESENTATIVE'S AGREEMENT
OF
CHUBB SECURITIES CORPORATION
<PAGE>
[LOGO OF CHUBB SECURITIES CORPORATION APPEARS HERE]
Chubb Securities Corporation
One Granite Place, PO Box 2005
Concord, New Hampshire 03302
(603) 226-5000
SALES REPRESENTATIVE'S
AGREEMENT
This AGREEMENT is made by and between CHUBB SECURITIES CORPORATION, a
corporation organized and existing under the laws of the State of New Hampshire
with its principal place of business in Concord, New Hampshire (hereinafter
called the Company) and
-----------------------------------------------------
of (hereinafter called the Sales
- -------------------- ---------------------
Representative).
In consideration of the premises and the mutual agreements herein made, it is
agreed as follows:
Effective Date
The agreement shall be effective as of
-------------------------------------,
19 .
--------
Territory
It is agreed that the Sales Representative will represent the Company in the
State(s) of and any other state in which the Sales
--------------------
Representative becomes registered hereafter.
Terms
1. The Company, subject to the terms and conditions contained herein, hereby
authorizes the Sales Representative, as an independent contractor, to represent
it in the sale of securities for which the Company may now or hereafter act as
principal, dealer, wholesaler or underwriter. The Sales Representative shall at
all times act in strict compliance with the state and federal securities laws,
including but not limited to the Federal Securities Act of 1933, as amended, and
with the rules and regulations of the National Association of Securities
Dealers, Inc.
2. The Company reserves the right to accept or reject any or all business
submitted to it by the Sales Representative. In all cases in which the question
of credit for business, confirmation of orders, or compensation is not
definitely stipulated herein, the decision of the Company shall be final.
3. The Sales Representatives agrees to use his/her best efforts on behalf of the
Company while so representing it, and will not engage in any employment by, or
representation of, any issuer of or dealer in securities other than those
offered by the Company without the written consent of the Company. The Sales
Representative agrees to promptly report and remit to the Company all checks,
drafts or funds of any kind received from customers without commingling same
with the Sales Representative's own funds and, in the event of failure to do so,
all rights hereunder, including all accrued and accruing commissions, shall
immediately terminate. If and when requested by the Company, the Sales
Representative shall furnish a surety bond satisfactory to the Company. This
Agreement shall be immediately and automatically cancelled upon cancellation of
coverage by the surety under said bond.
4. The Sales Representative shall be free to exercise his/her own judgment as to
whom to solicit and the time, place and manner of solicitation, subject to the
vesting provisions of this Agreement. The Sales Representative shall pay all
expenses in connection with conducting business as a Sales Representative and
shall comply with all federal and state laws, ordinances and regulations
relating thereto. The Sales Representative shall make no solicitation for any
securities until he/she have been duly registered under the applicable state and
federal laws, and until any license or permit required by law have been
obtained, and unless such registration is then in effect.
5. The Sales Representative agrees that, in connection with all solicitations,
he/she will not take or recommend any action which they may have reason to
believe is not in the best interest of each client or customer. The Sales
Representative agrees not to make any untrue statement or misrepresentations, or
omit any material facts concerning the securities involved, and will also comply
in all respects with the Rules of Fair Practice, and other applicable rules of
the National Association of Securities Dealers, Inc. and all applicable federal
and state laws.
6. The Sales Representative hereby assigns to the Company any and all
commissions or other monies owed to the Sales Representative or which hereafter
accrue to the Sales Representative under any contracts he/she may have with the
Chubb Life Insurance Company of America or any subsidiary or affiliate thereof,
as security for the repayment of any loan or extensions of credit made to the
customers of
Form 3-0825 Ed. 12/89 Page 1
<PAGE>
<PAGE>
the Sales Representative at the Representative's request by the Company or for
any losses incurred by the Company in such transaction. The Sales Representative
hereby authorizes Chubb Life Insurance Company of America, or applicable
subsidiary or affiliate, upon receipt of written demand by the Company, to pay
such monies to the Company to the extent of the Company's interest therein.
7. The Sales Representative shall be entitled to commissions with respect to all
sales the Sales Representative shall make in accordance with the Commission
Schedules issued from time to time by the Company and incorporated by reference
herein. Any commission will be paid by the Company to the Sales Representative's
District Manager, who will then pay the commission over to the Sales
Representative, unless the District Manager specifies in writing to the Company
that commissions shall be paid directly to the Sales Representative or as
otherwise required by law. All commissions are payable subject to receipt of
full payment for the securities sold and the Sales Representative hereby
expressly waives all rights to such earned commissions or other payments until
such time as the Company is in actual receipt of the concession due in respect
to such sale. Payments, if any, made to the Sales Representative or for the
Sales Representative's account in excess of commissions earned by the Sales
Representative in accordance with said Commission Schedules as amended or
supplemented shall be deemed advances against future commissions and the amount
of any such excess shall be refunded to the Company in the event of termination
of this Agreement, to the extent that such commissions have not been earned
prior to such termination. Any indebtedness from the Sales Representative to
the Company shall be a first lien upon any amount due the Sales Representative
hereunder.
8. If the Sales Representative's license with the National Association of
Securities Dealers, Inc. is terminated as a result of retirement, after
attaining the age of 55, or as a result of sustaining a total and permanent
disability, and if the Sales Representative agrees in the case of such
retirement or disability to the continuance of this Agreement and executes a
form agreeing not to solicit any new securities business or attempt to obtain
licensing with the National Association of Securities Dealers, Inc. through any
other entity, or if this Agreement is terminated as a result of the death of the
Sales Representative then, in any such case, the Company will continue to pay to
the Sales Representative, successors or assigns, all commissions totalling in
excess of $100 per annum, on business which was personally produced by the Sales
Representative, which would otherwise be due the Sales Representative under the
applicable Commissions Schedules, on all accounts which continue to be credited
to the Sales Representative as personal production pursuant to the New Customer
Account forms executed under this Agreement prior to such termination or death
and not resulting from any solicitation after termination, for a period not to
exceed five (5) years from the date of such termination or death. All vested
payments, as detailed above, shall relate solely to business of the Sales
Representative which remains credited to the Sales Representative pursuant to
New Customer Account forms executed prior to such termination or death and which
remain in force during the term of such vesting. The Company reserves the right
not to pay any commissions after termination if the Sales Representative refuses
to execute written acknowledgment of the continuance of this Agreement, or if
the Company receives proof of further securities solicitation or licensing with
the National Association of Securities Dealers, Inc. by the former Sales
Representative.
If this Agreement is terminated for any reason other than death, retirement or
permanent and total disability, then no commissions or other compensation shall
be paid; provided, however, that if this Agreement is terminated for any reason
other than the National Association of Securities Dealers, Inc.
disqualification, then commissions will continue to be paid in accordance with
the Supplemental Commission Schedule (or any replacement thereof) on all premium
payments received by the Company on variable life insurance products.
The Company will not pay commissions to any Sales Representative who is
disqualified from association with any member of the National Association of
Securities Dealers, Inc. because of revocation, expulsion, suspension, or any
other reason, nor will the Company pay commissions in violation of any
applicable laws or regulations.
9. The Company will, each month, furnish to the Sales Representative a statement
of the Sales Representative's account showing all earnings and payments made to
his/her account and the balance due from the Company and the amount of any
indebtedness due from the Sales Representative to the Company. The Sales
Representative agrees to notify the Company, in writing, within 30 days, of any
discrepancy or disagreement with such statement in any respect, and in the
absence of such notice, the statement shall be conclusively presumed to be
correct unless the parties mutually agree to an adjustment in writing.
10. The Company may offset against any commissions or other monies accruing to
the account of the Sales Representative any debts, liabilities, or other
obligations of the Sales Representative due to the Company or any affiliate of
the Company. The Company may also in its sole discretion offset against any
commissions or other monies accruing to the account of the Sales Representative
any debts or liabilities of the Sales Representative due to his/her District
Manager.
11. Should the Sales Representative transfer to a new District Manager's agency,
any override commissions shall then be paid to the new District Manager. Should
<PAGE>
the Sales Representative become a District Manager, the Sales Representative
shall then be entitled to both commissions and override commissions due under
the terms of this Agreement and the District Manager's Agreement.
12. The Sales Representative shall obtain and maintain for the term of this
Agreement errors and omissions insurance satisfactory to the Company, and shall
provide proof of such coverage to the Company.
13. With respect to any concession which the Company may receive as a
residual concession at the termination of a direct participation program, it
being understood that any such residual concession to the Company is contingent
in nature and there is no guarantee that the Company will ever actually receive
such payment, the Company will, upon receipt of such residual concession, pay
out a commission to the Sales Representative in accordance with the vesting
schedule as follows: (i) If the Sales Representative has been under agreement
with the Company for no less than one nor more than five years, then he/she
shall be vested to receive any residual concession three years or more after the
program sale is made;
(ii) If the Sales Representative has been under agreement with the Company for
no less than six nor more than ten years, he/she shall be vested to receive any
residual concession two years or more after the program sale is made; and
(iii) If the Sales Representative has been under agreement with the Company for
more than ten years, then he/she shall be vested to receive any residual
concession one year or more after the program sale is made;
provided, however, that the Sales Representative must continue to be under
agreement with the Company for the number of years set forth in applicable
portion of the above vesting schedule after a program sale is made. If the Sales
Representative does not remain under agreement for the applicable number of
years after a program sale is made, then no residual concession shall be paid.
The amount of the residual concession commission paid shall be as set forth in
the Commission Schedule in effect at the time of the payment.
Payment of a commission to the Sales Representative out of any residual
concessions received by the Company will be considered as any other commission
and all provisions of this Agreement which relate to commissions will also apply
to these commissions, specifically including but not limited to the terms of
paragraphs 8 and 9.
14. This Agreement may be terminated at any time by either party upon thirty
(30) days written notice to the other, and may be terminated immediately by the
Company for cause. Notice of such termination shall be deemed to be given on the
day mailed or delivered. If mailed to the Company, it shall be addressed to the
principal office of the Company at One Granite Place, Concord, New Hampshire and
if mailed to the Representative shall be addressed to their last known address
as shown on the records of the Company. If this Agreement is terminated for any
reason other than those set forth in Paragraph 8, above, then pay commissions
generated by the Sales Representative and not paid prior to the termination date
shall be paid to the Sales Representative's District Manager.
15. This Agreement is made in the State of New Hampshire and all questions
concerning its validity, construction or otherwise shall be determined under the
laws of New Hampshire.
IN WITNESS WHEREOF, the parties hereto have executed this agreement in duplicate
as of the date first written below.
CHUBB Securities Corporation District Manager
-------------------------
by: Date:
--------------------------------- ------------------------------
Date: Sales Representative:
------------------------------- --------------------
Date:
------------------------------
<PAGE>
[LOGO OF CHUBB SECURITIES CORPORATION APPEARS HERE]
Chubb Securities Corporation
One Granite Place, P0 Box 2005
Concord, New Hampshire 03302
(603) 226-5000
CHUBB SECURITIES CORPORATION
COMMISSION SCHEDULE
This Commission Schedule is a part of the Sales Representative Agreement entered
into by the Sales Representative and the Company and is incorporated by
reference therein.
Commissions on sales made and concession received by the Company will be paid in
accordance with the Agreement and the following schedule:
% of dealer concession for: (40% unless otherwise indicated and not to
- ----- exceed percentage paid to District Manager)
1. Mutual Fund Cash Sales.
2. Variable or Fixed Annuity and Mutual Fund Contractual Sales on first year
and subsequent payments.
3. Private Placements - as received for all staged-in payments. For the
purposes of computing commissions on private placements, the Company shall
retain one-third of any marketing or due diligence expense allowance (or
other terminology generally accepted to mean such a concept) paid on a per
unit basis in excess of 9%, and will pay commissions out of the balance.
4. General Securities Sales of any other type based on 80% of the dealer
concession generated from the general securities transactions, net of
ticket and administrative charges.
5. Public Limited Partnerships, Unit Investment Trusts.
Any other securities made available through the Company's facilities - in
accordance with Supplemental Commission Schedules.
This Commission Schedule rescinds and replaces all prior commission schedules
issued by the Company as of its effective date and will continue in effect until
such time as a new Schedule of Commissions may be established by the Company.
District/Branch Manager Name
----------------------------------------
Signature
----------------------------------------
Sales Representative Name
----------------------------------------
Signature
----------------------------------------
Date
----------------------------------------
<PAGE>
Exhibit 1(c) (v)
SCHEDULE OF COMMISSIONS
<PAGE>
SCHEDULE OF SALES COMMISSIONS
-----------------------------
Selling Broker-Dealers
----------------------
Commissions are 3% of all premiums paid.
Writing Agents of Chubb Securities Corporation
----------------------------------------------
Commissions are 2 % of all premiums paid.
-
District Managers of Chubb Securities Corporation
-------------------------------------------------
Commissions are 1 % of all premiums paid.
_
<PAGE>
Exhibit 1(e) (i)
SPECIMEN
FLEXIBLE PREMIUM
VARIABLE LIFE INSURANCE POLICY
<PAGE>
[LOGO OF CHUBB LIFEAMERICA APPEARS HERE]
Chubb Life Insurance Company of America
One Granite Place. P.O. Box 515. Concord. New Hampshire 03302 (603) 226-5000
Chubb Life Insurance Companya of America, a stock company. will pay the Death
Benefit specified herein to the Beneficiary on the death of the Insured on
receipt of due proof of the Insured's death while this policy was in force.
This is a Flexible Premium Variable Life Insurance Policy. The Specified Amount
may be increased or decreased by the Owner. Net Premiums will be allocated to
the General Account or to one or more divisions of Chubb Separate Account C
(herein called Separate Account C) as determined by the Owner.
THE POLICY'S ACCUMULATION VALUE IN EACH DIVISION OF SEPARATE ACCOUNT C IS BASED
ON THE INVESTMENT EXPERIENCE OF THAT DIVISION AND MAY INCREASE OR DECREASE
DAILY. THE ACCUMULATION VALUE IS NOT GUARANTEED AS TO DOLLAR AMOUNT.
The policy's Accumulation Value in the General Account will earn interest daily
at a minimum guaranteed effective annual rate of 4%. Interest in excess of the
guaranteed rate may be applied in the calculation of the Accumulation Value at
such increased rates as the Company may determine.
THE AMOUNT OF DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY VARY UNDER
THE CONDITIONS DESCRIBED HEREIN.
This policy is a legal contract between the Owner and Chubb Life Insurance
Company of America.
READ YOUR POLICY CAREFULLY
TWENTY DAY RIGHT TO CANCEL - Please examine this policy carefully. You may
cancel this policy by returning it to our Home Office or to the agent through
whom it was purchased within 20 days after the date you receive the policy or
any longer period as may be required by the Securities and Exchange Commission.
If the policy is returned. it will be deemed void from the beginning and any
premium paid for it will be refunded within 7 days.
[SIGNATURE APPEARS HERE] /s/ Frederick G. Condon
President Secretary
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
Insured: ***************************
Policy Number: ##############
Adjustable Death Benefit Payable On The Death Of The Insured.
Premium Payments May be Made At Any Time And. Within Limits. In Any Amount.
The Specified Amount May Be Increased Or Decreased And
Death Benefit Option May Be Changed.
The Maturity Date May Be Changed Subject To Limitations In The Policy.
Surrender Value. If Any, Payable On Maturity Date.
Additional Benefits. If Any, As Indicated On Page 3.
Some Benefits Reflect Investment Results.
Non-participating - No Dividends.
<PAGE>
GUIDE TO POLICY PROVISIONS
<TABLE>
<S> <C>
Corridor Percentage Table ................................... 3B
Data Page:
Age at Issue ............................................. 3
Death Benefit Option ..................................... 3
Initial Specified Amount ................................. 3
Maturity Date ............................................ 3
Owner .................................................... 3
Policy Expense Charges ................................... 3
Death Benefit:
Changes in Existing Coverage ............................. 11
Death Benefit ............................................ 11
Definitions ................................................. 5
General Provisions:
Annual Report ............................................ 9
Assignment ............................................... 8
Changing the Beneficiary ................................. 8
Illustration of Benefits and Values ...................... 9
Incontestability ......................................... 7
Misstatement of Age or Sex ............................... 7
Non-Participating ........................................ 9
Payment of Proceeds ...................................... 8
Postponement of Payment .................................. 9
Proceeds ................................................. 8
Reserves ................................................. 9
Suicide .................................................. 7
Payment Options:
Death of Payee ........................................... 18
Election of an Option .................................... 18
Interest ................................................. 18
Limitation on Rights of Payee and Claims of Creditors .... 18
Option A - Installments of a Specified Amount ............ 18
Option B - Installments for a Specified Period ........... 18
Option C - Life Income ................................... 18
Option D - Interest ...................................... 18
Supplementary Contract ................................... 18
Tables of Monthly Installments Under Option B or C ....... 19
Withdrawal Value ......................................... 18
Policy Loans:
Policy Loan Interest ..................................... 17
Policy Loan Repayment .................................... 17
Policy Loans ............................................. 17
Types of Policy Loans (Type A and Type B) ................ 17
Policy Values:
Accumulation Value ....................................... 11
Basis of Computations .................................... 15
Cash Value ............................................... 14
Continuation of Insurance ................................ 14
Cost of Insurance ........................................ 13
Cost of Insurance Discounts .............................. 14
Cost of Insurance Rates .................................. 13
General Account Accumulation Value ....................... 12
General Account Interest Rate ............................ 12
Insufficient Cash Value .................................. 14
Minimum Values ........................................... 15
Monthly Deduction ........................................ 13
Net Investment Factor .................................... 13
Separate Account Accumulation Values ..................... 12
Surrender ................................................ 15
Surrender Charge ......................................... 15
Withdrawal of Cash Value (Withdrawal) .................... 14
Premiums:
Allocation of Net Premiums ............................... 10
Grace Period ............................................. 10
Net Premium .............................................. 10
Planned Periodic Premium and Premium Frequency ........... 9
Policy Lapse ............................................. 10
Premium Payments ......................................... 9
Reinstatement ............................................ 10
Unscheduled Premiums ..................................... 10
Separate Account Provisions:
Addition. Deletion. or Substitution of Investments ....... 16
Divisions ................................................ 16
Separate Account ......................................... 15
Transfers ................................................ 16
Schedule of Surrender Charges ............................... 3A
Table of Monthly Guaranteed Cost of Insurance Rates ......... 4
Your Contract:
Change of Maturity Date .................................. 6
Change or Modification ................................... 6
Entire Contract .......................................... 6
Maturity Date ............................................ 6
Owner Death .............................................. 6
Termination .............................................. 6
This Policy is a Legal Contract .......................... 6
Your Rights Under This Policy ............................ 6
When Coverage Begins ..................................... 6
</TABLE>
A copy of the application will be found after the last page of this policy. Any
other benefit or agreements will also be found after the last page.
Page 2
<PAGE>
INSURED: JOHN DOE MATURITY DATE: 10/01/2058
OWNER: INSURED POLICY NUMBER: 0000000
ISSUE DATE: 10/01/1993 PREMIUM FREQUENCY: ANNUAL
POLICY DATE: 10/01/1993 DEATH BENEFIT: OPTION 1
AGE AT ISSUE: 35 MALE CORRIDOR PERCENTAGE TABLE: STANDARD
RATING CLASS: NON-SMOKER
BENEFICIARY: AS STATED IN APPLICATION OR ENDORSEMENT ATTACKED.
INITIAL PLANNED
MINIMUM PERIODIC
LIFE INSURANCE PREMIUM PREMIUM
$500,000 INITIAL SPECIFIED AMOUNT $6,110.00 $6,110.00
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
IT IS POSSIBLE THAT COVERAGE WILL EXPIRE PRIOR TO THE MATURITY DATE CHOSEN WHEN
EITHER NO PREMIUMS ARE PAID FOLLOWING PAYMENT OF THE INITIAL PREMIUM OR
SUBSEQUENT PREMIUMS ARE INSUFFICIENT TO CONTINUE COVERAGE TO SUCH DATE. IF
CURRENT VALUES CHANGE, THIS WILL ALSO AFFECT COVERAGE.
THE POLICY' S ACCUMULATED VALUE IN THE GENERAL ACCOUNT WILL EARN INTEREST DAILY
AT A MINIMUM GUARANTEED EFFECTIVE ANNUAL RATE OF 4%. THE POLICY'S ACCUMULATED
VALUE HELD IN THE GENERAL ACCOUNT FOR POLICY LOAN COLLATERAL WILL EARN INTEREST
DAILY AT AN EFFECTIVE ANNUAL RATE OF 6%.
ALLOCATIONS OF NET PREMIUMS: 20.0% INTERNATIONAL EQUITY DIVISION
20.0% SMALL COMPANY DIVISION
20.0% EQUITY DIVISION
20.0% BOND DIVISION
20.0% TREASURY MONEY MARKET DIVISION
POLICY EXPENSE CHARGES:
(1) STATE PREMIUM TAX LOAD: 2.5% OF EACH PREMIUM PAID.
(2) FEDERAL DEFERRED ACQUISITION COST (DAC TAX) LOAD: 1.25% OF EACH
PREMIUM PAID.
(3) SALES LOAD: 3.0% OF EACH PREMIUM PAID.
(4) COST OF INSURANCE AS DEFINED ON PAGE 13.
(5) MORTALITY AND EXPENSE RISK CHARGE AS DEFINED ON PAGE 13.
(6) SURRENDER CHARGE ON WITHDRAWAL OR SURRENDER AS DEFINED ON PAGE 15.
Page 3
<PAGE>
POLICY YEAR SURRENDER FACTOR
1 5%
2 4%
3 3%
4 2%
5 1%
6+ 0
SURRENDER CHARGE IS CALCULATED BY MULTIPLYING THE APPROPRIATE SURRENDER FACTOR
BY THE TOTAL PREMIUMS PAID IN THE FIRST POLICY YEAR.
3A
<PAGE>
CORRIDOR PERCENTAGE TABLE
<TABLE>
<CAPTION>
Policy Corridor Policy Corridor Policy Corridor
Year Percentage Year Percentage Year Percentage
<S> <C> <C> <C> <C> <C>
01 438% 26 198% 51 121%
02 423 27 193 52 119
03 409 28 188 53 118
04 395 29 183 54 117
05 382 30 178 55 116
06 370 31 174 56 115
07 358 32 169 57 114
08 346 33 165 58 113
09 335 34 161 59 112
10 324 35 158 60 111
11 314 36 154 61 110
12 304 37 151 62 108
13 294 38 148 63 107
14 285 39 145 64 105
15 276 40 142 65 104
16 267 41 140
17 259 42 137
18 251 43 135
19 243 44 133
20 236 45 131
21 229 46 129
22 222 47 127
23 216 48 125
24 210 49 124
25 204 50 122
M-NS
</TABLE>
Page 3B
<PAGE>
TABLE OF MONTHLY GUARANTEED COST OF
INSURANCE RATES PER $1,000
POLICY NUMBER 000000
<TABLE>
<CAPTION>
Policy Monthly Policy Monthly Policy Monthly
Year Rate Year Rate Year Rate
<S> <C> <C> <C> <C> <C>
01 0.14085 26 1.05444 51 12.58987
02 0.14752 27 1.16302 52 13.75325
03 0.15669 28 1.28665 53 14.95279
04 0.16669 29 1.42787 54 16.16464
05 0.17837 30 1.58752 55 17.40526
06 0.19087 31 1.76394 56 18.69215
07 0.20588 32 1.95381 57 20.04733
08 0.22088 33 2.15965 58 21.51567
09 0.23839 34 2.38065 59 23.16008
10 0.25590 35 2.62186 60 25.25984
11 0.27674 36 2.89419 61 28.27411
12 0.29926 37 3.25305 62 33.10677
13 0.32344 38 3.55929 63 41.68475
14 0.34929 39 3.96902 64 58.01259
15 0.37848 40 4.42953 65 83.33266
16 0.40933 41 4.92413
17 0.44603 42 5.45122
18 0.48857 43 6.00585
19 0.53612 44 6.58221
20 0.59118 45 7.19473
21 0.65209 46 7.86724
22 0.71968 47 8.61695
23 0.79146 48 9.46542
24 0.86909 49 10.42336
25 0.95675 50 11.47263
M-NS
</TABLE>
Page 4
<PAGE>
DEFINITIONS
Terms or Definitions we identify or define here are some of the terms used
throughout the contract. There are other terms which are explained or defined in
other parts of the text.
Accumulation Value - The Accumulation Value of the policy is equal to the total
of the policy's Accumulation Value in the General Account and the policy's
Accumulation Value in divisions of Separate Account C.
Attained Age - Refers to the age nearest birthday on the Policy Date of each
Insured plus the number of completed policy years.
Beneficiary - The person named to receive the Death Benefit proceeds upon the
death of the Insured. The Beneficiary is as named in the application unless
later changed. There can be one or more Beneficiaries.
Cash Value - The Accumulation Value less any applicable Surrender Charge.
Death Benefit - The amount payable on the death of the Insured while this policy
is in force. It is explained in the Death Benefit section.
Debt - Means the principal of any loan outstanding against this policy, plus any
accrued loan interest which has not been paid.
Initial Minimum Premium - The minimal first year premium amount due and payable
on the Policy Date as shown on Page 3.
Insured - The person named as the Insured on Page 3. The Insured may be other
than the Owner.
Issue Date - This is the date this policy is issued at the Home Office and is
stated on Page 3. The contestable and suicide periods are measured from the
Issue Date.
Policy Date - The date as shown on Page 3, which is the date requested by the
Owner. If no date is requested, it shall be the Issue Date. The Policy Date is
the date from which policy years, policy months, policy anniversaries and
monthly anniversary days 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 Year - The first policy year is the twelve month period following the
Policy Date. Each twelve month period thereafter makes up the next policy year.
Specified Amount - The face amount of the policy as selected by the Owner. This
amount may increase or decrease subject to the terms of this policy. The Death
Benefit is based on the Specified Amount as described in the Death Benefit
section.
Surrender Charge - A charge to the Accumulation Value in the event of surrender
or withdrawal. It is further explained in the Policy Values section.
Surrender Value - The Cash Value less any debt.
We, Us, Our - Chubb Life Insurance Company of America.
Withdrawal - A payment to you of some portion of the Cash Value accompanied by
a reduction to the Accumulation Value, Specified Amount, and Death Benefit. It
is explained in the Policy Values section.
Written Request - A request in writing signed by you and received by us.
You, Your - The Owner of this policy as shown in the application. unless later
changed following written request. The Owner may be someone other than the
Insured.
Page 5
<PAGE>
YOUR CONTRACT
This Policy is a Legal Contract - This policy is a legal contract that you have
entered into with us. We promise to provide the insurance benefits described in
this policy. In return, you have submitted a completed application, a copy of
which is attached. You also promise to pay the Initial Minimum Premium. There
is no insurance until the Initial Minimum Premium is paid.
Entire Contract - The entire contract consists of:
(1) this policy form; and
(2) riders, if any, which add benefits to the basic policy; and
(3) endorsements, if any: and
(4) your application, and any amendments or supplemental applications all
of which are added to and made a part of the policy.
When Coverage Begins - The coverage begins on the Policy Date, provided that
the Initial Minimum Premium has been paid, and the policy has been delivered
while there has been no change since the date of the application in the health
of the Insured or to the answers to the health questions contained in the
application. Any requested increase or addition to coverage will be shown on a
Supplemental Policy Specifications Page. The effective date for such requested
coverage shall begin on the monthly anniversary day that coincides with or next
follows our approval of such increase or addition.
Termination - This policy terminates when any of the following occur:
(1) you request the full surrender of this policy;
(2) the death of the Insured;
(3) the Grace Period ends; or
(4) the policy reaches its Maturity Date.
Maturity Date - The Maturity Date is shown on Page 3 and is the date when
coverage is scheduled to end. If this policy is in force on the Maturity Date:
(1) all insurance benefits end; and
(2) the Accumulation Value less any debt will be paid as you direct in a
lump sum or under a payment option.
The policy may end prior to the Maturity Date if premium payments are
insufficient to continue coverage to such date. Details are provided in the
Policy Lapse provision of the Premiums section.
Change of Maturity Date - The Maturity Date may be changed, upon written request
by you. The new Maturity Date may be any policy anniversary after the end of
the tenth policy year and before the Insured's 100th birthday. However, the new
Maturity Date must be at least twelve months from the date we receive such
written request from you.
Change or Modification - Only one of our officers can change or modify this
policy or waive any of our rights or requirements. Any such changes must be in
writing. No agent has the authority to make any changes or waive any of the
terms of your policy.
To the extent permitted by applicable laws and regulations, we may make changes
without your consent to the provisions of this policy to comply with any
applicable federal or state laws including, but not limited to, requirements for
life insurance contracts under the Internal Revenue Code. You have the right to
refuse any such changes. However, we cannot accept responsibility for the tax
treatment of this policy. You should consult your tax advisor regarding taxation
of this policy.
Your Rights Under This Policy - As the Owner, you can exercise every right,
receive every benefit and enjoy every privilege granted by this policy.
Owner Death - Upon death of the Owner, the Insured will assume ownership, unless
otherwise provided. If such ownership goes to joint owners, they will be joint
tenants with right of survivorship and not tenants in common.
9402 Page 6
<PAGE>
GENERAL PROVISIONS
Incontestability - We rely on the statements made in the application for this
policy and any supplemental applications. These statements, in the absence of
fraud, are considered representations and not warranties. No statement may be
used in defense of a claim under this policy unless it is in an application.
We will not contest this policy, except for any increase in the Specified
Amount, after it has been in force during the lifetime of the Insured for a
period of two years from its Issue Date.
Any increase in the Specified Amount will not be contested after such increase
has been in force during the lifetime of the Insured for two years following the
effective date of such increase. Any increase will be contestable, within the
two year period, only with regard to statements concerning the increase.
If we cancel coverage for the Initial Specified Amount, we will refund to you
all premiums paid less any policy loans and withdrawals paid out, or if we are
canceling coverage for an additional Specified Amount or Amounts only, we will
refund to you, the cost of insurance for the additional Specified Amount or
Amounts, charged for the applicable period.
If this policy is reinstated, the incontestability period will start over again
beginning on the reinstatement date, but only for statements made in the
application for reinstatement.
Suicide - If the Insured commits suicide, while sane or insane, within two years
from the Issue Date, our only liability will be a refund of premiums paid
without interest less any policy loans and withdrawals. If the Insured commits
suicide, while sane or insane, after such two year period, but within two years
of the effective date of any increase in the Specified Amount, our only
liability with respect to the increase in the Specified Amount will be a refund
of the total cost of insurance for such increase.
Misstatement of Age or Sex - If the Insured's age or sex has been misstated in
the application, we will adjust the proceeds to reflect the correct age or sex.
In such event, the Death Benefit we will pay will be equal to:
(1) The Accumulation Value on the date of death of the Insured less any
outstanding debt; plus
(2) The Death Benefit, less the Accumulation Value on the date of death of
the Insured, multiplied by the ratio of (a) the cost of insurance
actually deducted at the beginning of the policy month in which death
occurs, to (b) the cost of insurance that should have been deducted
based on the correct age or sex.
If the Insured's age or sex has been misstated in the application, the amount
payable under any rider by reason of death of the Insured shall be that amount
of insurance which the rider cost, for the policy month during which such death
occurred, would have purchased had the cost of the benefits provided under the
rider been calculated using the correct cost of insurance rates for the correct
age or sex.
If prior to the death of the Insured, it is found that the Insured's age or sex
has been misstated in the application for the policy or a rider, the policy cash
value will be recalculated from issue, using mortality charges based on the
correct age or sex.
9403 Page 7
<PAGE>
GENERAL PROVISIONS (CONTINUED)
Assignment - While the Insured is alive you can:
(1) assign policy ownership to someone else: or
(2) assign this policy as security for an obligation. (This does not assign
ownership).
A signed copy of the assignment must be sent to our Home Office on a form we
accept. The assignment will go into effect when it is signed subject to any
payments we make or other actions we take before we record it. We are not
responsible for the validity of any assignment.
Changing the Beneficiary - You can change the Beneficiary at any time during the
lifetime of the Insured. To do so, send a written request to our Home Office.
The request must be on a form we accept. The change will go into effect when
signed subject to any payments we make or other actions we take before we record
the change. A change cancels all prior beneficiary designations.
Proceeds - By proceeds, we mean the amount payable:
(1) on the Maturity Date: or
(2) on surrender; or
(3) on the death of the Insured.
The proceeds on the Maturity Date, as well as on surrender, will be the Cash
Value less any debt. The proceeds on the death of the Insured will be the Death
Benefit less any debt and less any monthly deductions due.
All proceeds are subject to the adjustments provided in the lncontestability,
Suicide, and Misstatement of Age or Sex provisions of this policy and the
restrictions below.
Payment of Proceeds - Death Benefit proceeds or Cash Value proceeds may be paid
in one sum or under our payment options. Before proceeds are paid, they will be
used to pay the interest of anyone to whom this policy has been assigned (see
the Assignment provision). Loans and assignments will be paid in one sum.
If there is no Beneficiary at the time of the death of the Insured, we will pay
the proceeds to you or your estate.
If the death benefit proceeds are not paid in one sum or applied under a payment
option within 30 days after we receive due proof of the death of the Insured, we
will pay interest. Interest will be paid at the rate of 4% a year from the date
we receive such proof until paid. If state law requires payment of a greater
amount, we will pay that amount.
To the extent allowed by law, all payments under this policy will be free from
creditor claims or legal process.
9403 Page 8
<PAGE>
GENERAL PROVISIONS (CONTINUED)
Postponement of Payment - We will usually pay any amounts payable on surrender,
withdrawal, or policy loan allocated to Separate Account C within seven days
after written notice is received. We will usually pay any Death Benefit proceeds
within seven days after we receive due proof of the death of the Insured.
Payment of any amount payable on surrender, withdrawal, policy loan, or death
may be postponed whenever:
(1) 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 Securities and Exchange Commission;
(2) The Securities and Exchange Commission, by order, permits postponement for
the protection of policyowners; or
(3) An emergency exists as determined by the Securities and Exchange
Commission, as a result of which disposal of securities is not reasonably
practicable or it is not reasonably practicable to determine the value of
the net assets of Separate Account C.
Transfers may also be postponed under the above circumstances.
We may defer the portion of any transfer, amount payable on surrender,
withdrawal or policy loan from the General Account for not more than six months.
However, no payment from the General Account to pay premiums on policies with us
will be deferred.
Annual Report - Following each December 31st, we will send you an annual report
which shows the current Cash Value, premiums paid, incurred charges and any
outstanding policy loans for the entire 12 months of the previous calendar year.
The first annual report forwarded to you will only reflect those months of the
previous calendar year during which this policy was in effect.
Illustration of Benefits and Values - We will provide illustrations of Death
Benefits and Cash Values at any time after the Policy Date upon your written
request. This illustration will be based on the existing Cash Value at the time
of request and maximum cost of insurance rates. Additional illustrations will be
made based on the existing Cash Value and current mortality assumptions.
Reserves - Reserves are the amount we hold to pay future benefits. They are not
less than the minimum required by applicable state law. When required, we file
with the state regulatory authorities a statement showing how Reserves are
calculated.
Non-Participating - This policy is a non-participating contract, which means the
following:
(1) Premiums are determined and predetermined on a prospective basis only;
(2) We will not recoup any prior losses by means of a premium change; and
(3) You are not entitled to participate in our profits.
PREMIUMS
Premium Payments - An initial premium is due and payable on the Policy Date. The
initial premium may not be less than the Initial Minimum Premium. All premiums
are payable at our Home Office or to our authorized agent in exchange for a
receipt. This receipt must be signed by an elected officer of the Company and
countersigned by such agent.
Planned Periodic Premium and Premium Frequency - The Planned Periodic Premium
and Premium Frequency, as shown on Page 3, are selected by you. The Planned
Periodic Premium is the amount of premium you intend to pay. The Premium
Frequency is how often you intend to pay the Planned Periodic Premium. Payment
of the Planned Periodic Premium is your option.
We will send you Planned Periodic Premium payment reminder notices. If the mode
of premium payment is preauthorized check, government allotment or payroll
deduction, notice of any Planned Periodic Premium due will not be sent.
Changes in Premium Frequency and increases or decreases in the Planned Periodic
Premium may be made by you by providing us with written notification. We reserve
the right to limit the amount of any increase. No premium payment may be less
than $500.00.
Payment of a Planned Periodic Premium may not prevent this policy from
terminating. Failure to pay a Planned Periodic Premium will not, in itself,
cause this policy to terminate. The policy will terminate only if the conditions
occur as described in the Grace Period provision.
9404 Page 9
<PAGE>
PREMIUMS (CONTINUED)
Net Premium - The Net Premium is equal to the premium paid less the Policy
Expense Charges shown on Page 3.
Allocation of Net Premiums - You will determine the allocation of the net
premiums among the General Account and the divisions of Separate Account C. The
minimum percentage that may be allocated to any of these accounts is 1%.
Unscheduled Premiums - Premium payments in addition to the Planned Periodic
Premium may be made at any time prior to the Maturity Date. We reserve the right
to limit the number and amount of additional premium payments.
If there is an existing policy loan, 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.
Grace Period - We will allow a Grace Period of 61 days. Such Grace Period will
begin on the day that the Cash Value less any policy debt on a monthly
anniversary day is not enough to cover the monthly deduction for the month
following such monthly anniversary day. The Cash Value and monthly deduction are
defined in the Policy Values section.
If the Insured dies during the Grace Period, we will deduct any overdue monthly
deduction, which is applicable to the Grace Period, from the proceeds of the
policy.
Policy Lapse - The policy will terminate without value at the end of the Grace
Period unless a premium large enough, after the deduction of the Policy Expense
Charges, to cover monthly deductions for at least three months is paid by the
end of the Grace Period. However, Coverage will not end until 31 days after we
have mailed a premium notice to you, and any assignee of record at the last
known address.
Reinstatement - Reinstatement is the restoration of the policy after it has
lapsed. Following reinstatement, the policy is placed back in force as if it had
never lapsed.
If this policy lapses or terminates as provided in the Grace Period provision,
we will reinstate the policy if we receive:
(1) your written request for reinstatement within five years after the end of
the Grace Period and before the Maturity Date:
(2) satisfactory proof the Insured is living and insurable at the original
rating class:
(3) payment of a premium large enough, after the deduction of the Policy
Expense Charges, to cover monthly deductions for at least three policy
months following the effective date of reinstatement: and
(4) payment or reinstatement of any debt against the policy which existed on
the date of termination.
The effective date of a reinstated policy or Reinstatement Date is the date we
approve the application for reinstatement. The Accumulation Value of the policy
on the Reinstatement Date shall be the Accumulation Value on the date of
termination plus the premium received to reinstate the policy. Any Surrender
Charges in effect on reinstatement shall be as defined in the Surrender Charge
provision based on the original Policy Date and duration.
9404 Page 10
<PAGE>
DEATH BENEFIT
Death Benefit - If the Insured dies while this policy is in force, we will pay
the Death Benefit upon receipt of due proof of the death of the Insured. The
Death Benefit is also subject to all other terms and conditions of this policy.
The Death Benefit provided by this policy depends on the Death Benefit Option in
effect on the date of death. The Death Benefit Option for this policy is shown
on Page 3.
Option I - Under Option I, the Death Benefit shall be the greater of:
(1) The Specified Amount: or
(2) The Accumulation Value on the date of death multiplied by the corridor
percentage.
Option II - Under Option II, the Death Benefit shall be equal to the Specified
Amount plus the Accumulation Value on the date of death. However, the Death
Benefit can never be less than the Accumulation Value on the date of death
multiplied by the corridor percentage.
The corridor percentage varies by policy duration and is indicated in the
Corridor Percentage Table as shown on Page 3B.
Changes in Existing Coverage - The Initial Specified Amount is shown on Page
3. At any time after the first policy anniversary, you may, by written request,
increase or decrease the Specified Amount. Any change is subject to the
following conditions:
(1) Any decrease will become effective on the monthly anniversary day that
coincides with or next follows our receipt of the request. At least twelve
months must elapse between decreases. Any such decrease will be deducted in
the following order:
(a) from the most recent Specified Amount increase, if any:
(b) successively from the next most recent Specified Amount increase, if
any;
(c) from the Initial Specified Amount.
(2) Any request for an increase must be applied for on a supplemental
application and shall be subject to evidence satisfactory to us that the
Insured is living and insurable. At least twelve months must elapse between
requested increases.
(3) Any change approved by us will become effective on the effective date shown
in the Supplemental Policy Data Page, subject to deduction of the first
month's cost of insurance from the Accumulation Value of this policy.
(4) The minimum Specified Amount. after a change, which must be in effect at any
time is $250,000.
(5) Any increase or decrease in the Specified Amount must be for at least
$250,000.
(6) You may request in writing to change the Death Benefit Option. If your
request is to change from Option I to Option II, the Specified Amount will
be decreased by the amount of the Accumulation Value. Evidence of
insurability satisfactory to us will be required on a change from Option I
to Option II. If the request is to change from Option II to Option I, the
Specified Amount will be increased by the amount of Accumulation Value. The
effective date of change shall be the monthly anniversary day that coincides
with or next follows the day the request for change is received.
POLICY VALUES
Accumulation Value - The Accumulation Value of the policy is equal to the total
of the policy's Accumulation Value in the General Account and the policy's
Accumulation Value in divisions of Separate Account C.
9405 Page 11
<PAGE>
POLICY VALUES (CONTINUED)
General Account Accumulation Value - The Accumulation Value in the General
Account on the Policy Date is equal to the portion of the net premium which has
been paid and allocated to the General Account, less the portion of the first
monthly deduction allocated to the General Account.
On each monthly anniversary day, the Accumulation Value in the General Account
is equal to (1) plus (2) plus (3) plus (4) minus (5) minus (6) minus (7) where:
(1) is the Accumulation Value in the General Account on the preceding monthly
anniversary day.
(2) is one month's interest on item (1).
(3) is any net premium received since the preceding monthly anniversary day plus
interest from the date the net premium is received to the monthly
anniversary day.
(4) is the sum of all Accumulation Values transferred to the General Account
from a division of Separate Account C since the preceding monthly
anniversary day and interest from the date the Accumulation Value is
transferred to the monthly anniversary day.
(5) is the sum of all Accumulation Values transferred from the General Account
to a division of Separate Account C since the preceding monthly
anniversary day and interest from the date the Accumulation Value is
transferred to the monthly anniversary day.
(6) is all withdrawals from the General Account since the preceding monthly
anniversary day plus interest from the date of the withdrawal to the monthly
anniversary day.
(7) is the portion of the monthly deduction allocated to the Accumulation
Value in the General Account to cover the policy month following the monthly
anniversary day.
On any date other than a monthly anniversary day, the Accumulation Value will be
calculated on a consistent basis.
General Account Interest Rate - The policy's Accumulation Value in the General
Account will earn interest daily at a minimum guaranteed effective annual rate
of 4%. Interest in excess of the guaranteed rate may be applied in the
calculation of the Accumulation Value at such increased rates as we may
determine. The policy's Accumulation Value held in the General Account for
policy loan collateral will earn interest daily at the lesser of an effective
annual rate of 6% or the interest rate currently credited.
Separate Account Accumulation Values - The Accumulation Value in each division
on the Policy Date is equal to the portion of the net premium which has been
paid and allocated to that division, less the portion of the first monthly
deduction allocated to the policy's Accumulation Value in that division.
At the end of each valuation period after the Policy Date, the policy's
Accumulation Value in a division is equal to (1) plus (2) plus (3) minus (4)
minus (5) where:
(1) is the Accumulation Value in the division on the preceding valuation date
multiplied by the Net Investment Factor for the current valuation period.
(2) is any net premium received during the current valuation period which is
allocated to the division.
(3) is all Accumulation Values transferred to the division from another division
or the General Account during the current valuation period.
(4) is all 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.
(5) is all withdrawals from the division during the current valuation period.
In addition, whenever a valuation period includes the monthly anniversary day,
the Accumulation Value at the end of such period is reduced by the portion of
the monthly deduction allocated to the division.
9405 Page 12
<PAGE>
POLICY VALUES (CONTINUED)
Net Investment Factor - The Net Investment Factor measures the investment
performance of a division during a valuation period. The Net Investment Factor
for each division for a valuation period is calculated as (1) divided by (2),
minus (3) where:
(1) is (a) the value of the assets in 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 in the valuation period for which the
Net Investment Factor is being determined, minus (c) the capital losses,
realized or unrealized, charged against those assets during the valuation
period, minus (d) any amount charged against each division for taxes, or any
amount we set aside during the valuation period as a reserve for taxes
attributable to the operation or maintenance of each division.
(2) is the value of the assets in the division at the end of the preceding
valuation period.
(3) is a charge not to exceed .00178083% for each day in the valuation period.
This corresponds to .65% per year for mortality and expense risks.
Monthly Deduction - The monthly deduction for a policy month shall be equal to
the cost of insurance (as described below) and the cost of additional benefits
provided by rider for the policy month.
The monthly deduction for a policy month will be allocated among the General
Account and the divisions of Separate Account C in the same proportion that the
Accumulation Value in the General Account less any debt and the Accumulation
Value in each division bears to the total Accumulation Value of the policy, less
any debt, at the beginning of the policy month.
Cost of Insurance - The cost of insurance for the Insured is determined on a
monthly basis. The cost of insurance is determined separately for the Initial
Specified Amount and each subsequent increase in
Specified Amount. The cost of insurance is calculated as (1), multiplied by the
result of (2) minus (3), where:
(1) is the cost of insurance rate as described in the Cost of Insurance Rates
provision.
(2) is the Death Benefit at the beginning of the policy month, divided by
1.00327374.
(3) is the Accumulation Value at the beginning of the policy month, prior to the
monthly deduction for the cost of insurance.
If the Death Benefit Option is Option I and there have been increases in the
Specified Amount then the Accumulation Value shall be first considered a part of
the Initial Specified Amount. If the Accumulation Value exceeds the Initial
Specified Amount, it shall then be considered a part of the additional Specified
Amounts resulting from increases in the order of such increases.
Cost of Insurance Rates - The monthly cost of insurance rate is based on the
policy year and the sex and rating class of the Insured. Monthly cost of
insurance rates will be determined by us based upon expectations as to future
mortality experience. Any changes in cost of insurance rates will apply to all
individuals of the same class as the Insured. The rating class will be
determined separately forthe Initial Specified Amount and for any increase in
Specified Amount that requires evidence of insurability. We will consider
changes in the cost of insurance rates at least every five years and when cost
of insurance rates for new issues change. However, the cost of insurance rates
can never be greater than those shown in the Table of Monthly Guaranteed Cost of
Insurance Rates on Page 4.
For attained ages 15 and above, such guaranteed maximum rates are based on
the 1980) CSO Male/Female. Smoker/Nonsmoker Mortality Tables with appropriate
increases for rated risks. For attained ages 14 and below, such guaranteed
maximum rates are based on the 1980 CSO Male/Female Mortality Tables with
appropriate increases for rated risks.
9406 Page 13
<PAGE>
POLICY VALUES (CONTINUED)
Cost of Insurance Discounts - There will be a non-guaranteed cost of insurance
discount that will be calculated at the beginning of each policy year. The
discount will be a monthly amount that is subtracted from the monthly cost of
insurance charge that is normally calculated. This discount may be suspended at
any time. You will be notified if the discount is suspended. The discount is
calculated as (1) multiplied by the result of (2) minus (3) minus (4), but not
less than zero, where:
(1) is a factor that varies by Specified Amount as follows:
<TABLE>
<CAPTION>
Specified Amount Factor
<S> <C>
Under $5 Million .0001250
$5 Million - $9.999 Million .0002500
$10 Million - $14.999 Million .0003750
Over $15 Million .0004583
</TABLE>
(2) is the Accumulation Value at the beginning of the policy year.
(3) is the Guideline Single Premium at issue, under Section 7702 of the
Internal Revenue Code, increased on a pro-rata basis for any increase in
Specified Amount.
(4) is the outstanding Type A loan balance at the beginning of the policy year.
The discount will be allocated among the General Account and divisions of
Separate Account C using the same percentages used to allocate net premiums.
Cash Value - The Cash Value is equal to the Accumulation Value less a Surrender
Charge.
Continuation of Insurance - In the event Planned Periodic Premium payments are
not continued or if there are changes of Death Benefit Options. mortality
deduction, deductions for additional benefit riders, withdrawals, or policy
loans, as well as varying investment results, insurance coverage under this
policy and any benefits provided by rider will be continued until the Cash
Value, less any debt, is insufficient to cover the monthly deduction, as
provided in the Grace Period provision. This provision shall not continue the
policy beyond the Maturity Date nor continue any rider beyond the date of its
termination, as provided in the rider. If the Cash Value is sufficient to
continue this policy to the Maturity Date, then any remaining Cash Value will be
paid to you if the insured is then living.
Insufficient Cash Value - If the Cash Value less any debt on a monthly
anniversary day is insufficient to cover the monthly deduction for the month
following such monthly anniversary day, the policy shall terminate as provided
in the Grace Period provision. Any deduction for the cost of insurance after
termination of insurance shall not be considered a reinstatement of the policy
nor a waiver by us of the termination. Any such deduction shall be credited to
the Cash Value as of the date of the deduction.
Withdrawal of Cash Value (Withdrawal) - Upon written request you may make a
withdrawal from this policy. Any withdrawal is subject to the following
conditions:
(1) The amount withdrawn may not exceed the Cash Value less any outstanding
debt.
(2) The minimum amount that may be withdrawn is $5000.
(3) A charge equal to $100 will be deducted from the amount of each withdrawal.
(4) The Accumulation Value will be reduced by the sum of the withdrawal and a
pro-rata portion of the Surrender Charge in effect on the date of the
withdrawal. The remaining Accumulation Value and schedule of surrender
charges will be determined by multiplying each of these values by a
numerical factor. This numerical factor is equal to
** Amount of Withdrawal **
1- * ---------------------------------------- *
** Cash Value Immediately Before Withdrawal **
(5) The Death Benefit will be reduced by an amount equal to the reduction in
the Accumulation Value. This will result in a reduction of the Specified
Amount if the Death Benefit is Option I by an amount equal to the reduction
in the Accumulation Value. The Specified Amount remaining in force after any
withdrawal must be at least $250,000.
You may allocate the withdrawal among the General Account and the divisions of
Separate Account C. If you do not specify the allocation, then the withdrawal
will be allocated among the General Account and the divisions of Separate
Account C in the same proportion that the Accumulation Value in the General
Account, less any debt, and the Accumulation Value in each division bears to the
total Accumulation Value of the policy, less any debt, on the date of the
withdrawal.
9406 Page 14
<PAGE>
Surrender - Upon written request you may surrender this policy at any time
during the lifetime of the Insured and before the Maturity Date. The amount
payable on surrender of this policy shall be the Surrender Value. If this policy
is surrendered, all insurance in force under this policy shall terminate on the
monthly anniversary day next following our receipt of the surrender request.
If surrender is requested under this section within 30 days after a policy
anniversary, the Cash Value shall not be less than the Cash Value on that
anniversary, less any policy loans or withdrawals made on or after such
anniversary.
Surrender Charge - The Surrender Charge is calculated by multiplying the
surrender factor by the total premiums paid in the first policy year.
The surrender factor will vary by policy year according to the table shown on
Page 3A.
Basis of Computations - For attained ages 15 and above, minimum Cash Values and
Reserves in the General Account are based on the 1980 CSO Male/Female,
Smoker/Nonsmoker Mortality Tables with interest at 4% per year. For attained
ages 14 and below, minimum Cash Values and Reserves in the General Account are
based on the 1980 CSO Male/Female Mortality Tables with interest at 4% per year.
The method used in computing Cash Values and Reserves in Separate Account C is
in accordance with actuarial procedures that recognize the variable nature of
Separate Account C. The method used is such that if the Net Investment Factor,
less one, for all divisions of Separate Account C, at all times from the Policy
Date, is equal to an effective annual interest rate of 4%, then the Cash Values
and Reserves in Separate Account C will be at least equal to the minimum Cash
Values and Reserves, which would have been required by the law of the state in
which this policy is delivered, of an equivalent policy in which all net
premiums have been allocated to the General Account.
Minimum Values - All values under this policy are not less than the values
required by the state in which this policy was delivered. A detailed statement
of the method of computation of Cash Values under this policy has been filed
with the insurance department of the state in which this policy was delivered.
SEPARATE ACCOUNT PROVISIONS
Separate Account - The variable benefits under this policy are provided through
investments in Separate Account C. We established Separate Account C as a
separate investment account to support variable life insurance contracts. We
will not allocate assets to Separate Account C to support the operation of any
contracts or policies that are not variable life insurance.
The assets of Separate Account C are owned by us. However, these assets are not
part of our General Account. Income, gains and losses, whether or not realized,
from assets allocated to Separate Account C will be credited to or charged
against the account without regard to our other income, gains or losses.
Assets equal to the reserves and other liabilities of Separate Account C will
not be charged with liabilities that arise from any other business we may
conduct. Such assets shall not be available to general creditors of ours in the
event of our insolvency to the full extent permitted by applicable law. We shall
have the right to transfer to our General Account any assets of Separate Account
C which are in excess of such reserves and other policy liabilities.
Separate Account C is registered with the Securities and Exchange Commission as
a unit investment trust under the Investment Company Act of 1940. Separate
Account C is also subject to the laws of the State of New Hampshire which
regulate the operations of insurance companies incorporated in New Hampshire.
The investment policy of Separate Account C will not be changed without the
approval of the Insurance Commissioner of New Hampshire. The approval process
is on file with the Insurance Commissioner of the state in which this policy was
delivered.
9407 page 15
<PAGE>
SEPARATE ACCOUNT PROVISIONS (CONTINUED)
Divisions - Separate Account C has several divisions. Each division will buy
shares of a separate series of Chubb Series Trust. Each series represents a
separate investment portfolio of Chubb Series Trust. All divisions of Separate
Account C are shown on page 3. You will determine the percentage of net premiums
which will be allocated to each division.
Income, gains and losses, whether or not realized, from the assets of Separate
Account C are credited to or charged against that division without regard to
income, gains or losses in other divisions of Separate Account C or in the
General Account.
We will value the assets of each division of Separate Account C at the end of
each valuation period. A valuation period is the period between two successive
valuation dates. A valuation date is each day that the New York Stock Exchange
is open for business or any other day in which there is material change in the
value of the assets in Separate Account C.
Transfers - You may transfer amounts between the General Account and the
divisions of Separate Account C by sending a written request to us. The total
amount transferred must be at least $1,000. No amounts under $1,000 may be
transferred out of any division of Separate Account C or the General Account
unless such lesser amount constitutes the entire balance. A transfer charge
equal to $100 will be imposed each time amounts are transferred, except with
respect to policy loans. The transfer charge will be deducted from the amount
that is transferred. We will make transfers so that the Accumulation Value on
the date of transfer will not be affected by the transfer except to the extent
of the transfer charge. We may revoke or modify the transfer privilege at any
time, including the minimum amount transferable and the transfer charge.
As long as any portion of the policy's Accumulation Value is allocated to a
division of Separate Account C, the policy's Accumulation Value and Cash Value
will reflect the investment performance of the chosen division(s) of Separate
Account C. The Death Benefit may also reflect the performance of the chosen
division(s) of Separate Account C.
At any time, you may transfer 100% of the policy's Accumulation Value to the
General Account. While 100% of the policy's Accumulation Value is allocated to
the General Account, minimum benefits for the policy will be fixed and
guaranteed.
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) of Separate Account C will be subject to the
transfer charge.
Addition, Deletion, or Substitution of Investments - We reserve the right,
subject to compliance with applicable law, to make additions to, deletions
from, or substitutions for the shares of a series that are held by Separate
Account C or that Separate Account C may purchase. We reserve the right to
eliminate the shares of any series of Chubb Series Trust and to substitute
shares of another series of Chubb Series Trust or of another open-end,
registered investment company, if the shares or series are no longer available
for investment or if in our judgement, further investment in any eligible series
should become inappropriate in view of the purposes of the policy. We will not
substitute any shares attributable to your interest in a division of Separate
Account C without notice to you and prior approval of the Securities and
Exchange Commission, to the extent required by the Investment Company Act of
1940. This shall not prevent Separate Account C from purchasing other
securities for other series or classes of policies, or from permitting
conversion between series or classes of policies or contracts on the basis of
requests made by policyowners.
We reserve the right to establish additional divisions of Separate Account C,
each of which would invest in a new series of Chubb Series Trust or in shares of
another open-end, registered investment company. We also reserve the right to
eliminate existing divisions of Separate Account C.
If we consider it to be in the best interest of persons having voting privileges
under the policies, Separate Account C may be operated as a management company
under the Investment Company Act of 1940; or it may be deregistered under that
Act in the event registration is no longer required or it may be combined with
other separate accounts.
94D7 Page 16
<PAGE>
POLICY LOANS
Policy Loans - After the first policy anniversary, a loan will be granted upon
the sole security of the portion of the Cash Value required to repay the loan.
The maximum loan amount is 90% of this policy's Cash Value on the date of loan.
Any prior debts to us against this policy will be deducted from the amount
available for loan.
You may allocate the policy loan among the General Account and the divisions of
Separate Account C. If you do not specify the allocation, then the policy loan
will be allocated among the General Account and the divisions of Separate
Account C in the same proportion that the Accumulation Value in the General
Account, less any debt, and the Accumulation Value in each division bears to the
total Accumulation Value of the policy, less any debt, on the date of the policy
loan. Accumulation Value in each division equal to the policy loan allocated to
each division will be transferred to the General Account and reduce the
Accumulation Value in that division. If loan interest is not paid when due, an
amount of Accumulation Value equal to the loan interest will also be
transferred.
If the policy debt exceeds the policy's Accumulation Value in the General
Account, we will transfer Accumulation Value equal to the excess debt from the
divisions of Separate Account C to the General Account as security for the
excess debt. The amount transferred will be allocated among the divisions in the
same proportion that the Accumulation Value in each division bears to the
policy's total Accumulation Value in all divisions of Separate Account C.
Types of Policy Loans (Type A and Type B) - There are two (2) types of policy
loans which we will grant to you - Type A and Type B. The type of loan which we
will grant depends upon the amount of unloaned Type A balance available at the
time the loan is taken. The unloaned Type A balance is the Cash Value, less the
threshold, and less the sum of any outstanding Type A loans as defined below.
The threshold is the Guideline Single Premium for this policy at issue as
defined in Section 7702 of the Internal Revenue Code of 1986 entitled "Life
Insurance Contract Defined". If the Specified Amount increases, the threshold
will be increased to the threshold at issue times the ratio of the largest
Specified Amount ever existing on the policy to the Initial Specified Amount. If
the Specified Amount decreases, the threshold will not change.
A Type A loan is a policy loan granted by us when the unloaned Type A balance
before the loan is taken exceeds the loan requested.
A Type B loan is a policy loan granted by us when the unloaned Type A balance
before the loan is taken is less than or equal to zero.
When the unloaned Type A balance before the loan is taken exceeds zero, but is
less than the loan requested, a Type A loan equal to the unloaned Type A balance
will be granted by us. The remainder of the requested loan will be a Type B
loan.
We will grant a Type A loan first before a Type B loan. Once a policy loan is
granted, it remains a Type A or a Type B until it is repaid.
Policy Loan interest - The interest charged by us on a policy loan depends upon
the type of loan granted.
On a Type A loan we will charge interest at an effective annual rate of 6.0%.
On a Type B loan we will charge interest at an effective annual rate of 6.85%.
Interest accrues on a daily basis from the date of the loan and is compounded
annually. Interest unpaid on a loan anniversary is added to and becomes part of
the loan principal and bears interest on the same rate.
Policy Loan Repayment - Any debt may be repaid, in whole or in part, at any time
while this policy is in force. Repayments will be used to reduce policy loans
until fully paid in the following order:
(1) Any or all Type B loans; then
(2) Any or all Type A loans.
When a loan repayment is made, Accumulation Value securing the debt in the
General Account equal to the loan repayment will be allocated among the General
Account and divisions of Separate Account C using the same percentages used to
allocate net premiums.
If the total debt equals or exceeds the Cash Value at any time, this policy will
terminate. The policy will not terminate until 31 days after notice has been
mailed to you and to the assignee, if any, at the address last reported to us.
9408 Page 17
<PAGE>
PAYMENT OPTIONS
Election of an Option - Any proceeds to be paid under this policy may be paid as
an income under any one of the options stated below. The election of an option
or change of prior election must be made in writing to us at our Home Office. If
an option is not chosen by you prior to the death of the Insured, the primary
Beneficiary may make such election.
Unless we agree otherwise, any such payments will be made only to a natural
person taking in his own right. An option may be elected only if the amount of
the proceeds is $2,000 or more. We may change the interval of payments to 3, 6,
or 12 months, if necessary to increase the guaranteed payments to at least
$20.00 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 us. The amount
of interest payment is calculated at the compound rate of 3% per year.
Interest payments will be made in 12-, 6-, 3-, or 1-month intervals as agreed
upon.
Supplementary Contract - When the proceeds of this policy become payable, a
supplementary contract setting forth the terms of the option chosen will be
issued to the Payee. The first payment under Option A, B, or C shall be payable
on the effective date of such option. The first payment under Option D shall be
payable at the end of the first agreed payment interval.
Interest - 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 at our sole discretion.
Withdrawal Value - Unless otherwise stated in the election of an option, the
Payee 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 interest.
For Option B 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.
For Option 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, the Payee must submit evidence of insurability.
Such evidence must be satisfactory to us. Otherwise, the Withdrawal Value shall
be the commuted value of any remaining guaranteed payments. In this event the
payments will be resumed at the end of the guaranteed period if the Payee should
be alive on that date. The payments will then continue for the lifetime of the
Payee.
Under any of these options, the Payee shall have the right to receive the
Withdrawal Value in partial amounts. However, the partial amounts shall not be
less than the smaller of the Withdrawal Value or $100.
Death of Payee - If the Payee 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.
Limitation on Rights of Payee and Claims of Creditors - Neither the amount
retained under an option nor any payment made under an option can be assigned or
pledged. To the extent permitted by law such amounts or payments shall not be
subject to claims of creditors or legal process.
9408 Page 18
<PAGE>
SETTLEMENT OPTIONS
TABLES OF MONTHLY INSTALLMENTS UNDER OPTION B OR C
Monthly installments are shown for each $1,000 of net proceeds applied. The ages
shown are ages nearest birthday when the first monthly installment is payable.
OPTION B TABLE
INSTALLMENTS FOR A SPECIFIED PERIOD
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Years Monthly Years Monthly Years Monthly Years Monthly Years Monthly
Installment Installment Installment Installment Installment
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $84.47 7 $13.16 13 $7.71 19 $5.73 25 $4.71
2 42.86 8 11.68 14 7.26 20 5.51 26 4.59
3 28.99 9 10.53 15 6.87 21 5.32 27 4.48
4 22.06 10 9.61 16 6.53 22 5.15 28 4.37
5 17.91 11 8.86 17 6.23 23 4.99 29 4.27
6 15.14 12 8.24 18 5.96 24 4.84 30 4.18
Multiply the monthly installment by 11.84 for annual, by 5.96 for semi-annual or by 2.99 for quarterly installments.
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OPTION C TABLE
LIFE INCOME
- --------------------------------------------------------------------------------------------------------------------
Attained Attained
Age of Payee MONTHLY INSTALLMENTS Age of Payee MONTHLY INSTALLMENTS
- --------------------------------------------------------------------------------------------------------------------
GUARANTEED GUARANTEED
Male Female 10 Years 15 Years 20 Years Male Female 10 Years 15 Years 20 Years
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
l6 or 2l or
Under Under $2.83 $2.82 $2.81 51 56 $4.60 $4.44 $4.24
17 22 2.85 2.84 2.84 52 57 4.69 4.52 4.30
18 23 2.88 2.87 2.86 53 58 4.79 4.60 4.36
19 24 2.90 2.89 2.88 54 59 4.90 4.69 4.41
20 25 2.93 2.92 2.91 55 60 5.01 4.77 4.47
21 26 2.95 2.95 2.93 56 61 5.12 4.86 4.53
22 27 2.98 2.97 2.96 57 62 5.23 4.94 4.59
23 28 3.01 3.00 2.99 58 63 5.35 5.03 4.64
24 29 3.04 3.03 3.02 59 64 5.48 5.12 4.70
25 30 3.08 3.07 3.05 60 65 5.61 5.21 4.75
26 31 3.11 3.10 3.08 61 68 5.74 5.30 4.80
27 32 3.14 3.13 3.11 62 67 5.87 5.39 4.85
28 33 3.18 3.17 3.15 63 68 6.01 5.48 4.90
29 34 3.22 3.20 3.18 64 69 6.16 5.56 4.94
30 35 3.26 3.24 3.22 65 70 6.30 5.65 4.98
31 36 3.30 3.28 3.25 66 71 6.45 5.73 5.02
32 37 3.34 3.32 3.29 67 72 6.60 5.82 5.05
33 38 3.39 3.36 3.33 68 73 6.76 5.90 5.09
34 39 3.43 3.41 3.37 69 74 6.91 5.97 5.12
35 40 3.48 3.45 3.41 70 75 7.07 6.05 5.14
36 41 3.53 3.50 3.45 71 76 7.23 6.12 5.17
37 42 3.59 3.55 3.50 72 77 7.38 6.18 5.19
38 43 3.64 3.60 3.54 73 78 7.54 6.24 5.20
39 44 3.70 3.65 3.59 74 79 7.69 6.30 5.22
40 45 3.76 3.71 3.64 75 80 7.84 6.35 5.23
41 46 3.82 3.77 3.69 76 81 7.98 6.39 5.24
42 47 3.88 3.82 3.74 77 82 8.13 6.43 5.25
43 48 3.95 3.88 3.79 78 83 8.26 6.47 5.26
44 49 4.02 3.95 3.84 79 84 8.39 6.50 5.26
45 50 4.09 4.01 3.90 80 or 85 or 8.51 6.53 5.27
46 51 4.17 4.08 3.95 Over Over
47 52 4.25 4.15 4.01
48 53 4.33 4.22 4.07
49 54 4.42 4.29 4.12
50 55 4.50 4.37 4.18
Multiply the monthly installment by 11.80 for annual, by 5.93 for semi-annual or by 2.98 for quarterly installments.
</TABLE>
9409 Page 19
<PAGE>
ENDORSEMENTS:
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
Adjustable Death Benefit Payable On The Death Of The Insured.
Premium Payments May be Made At Any Time And, Within Limits, In Any Amount.
The Specified Amount May Be Increased Or Decreased And
Death Benefit Option May Be Changed.
The Maturity Date May Be Changed Subject To Limitations In The Policy.
Surrender Value, If Any, Payable On Maturity Date.
Additional Benefits, If Any, As Indicated On Page 3.
Some Benefits Reflect Investment Results.
Non-participating - No Dividends.
9409
<PAGE>
Exhibit 1(e) (ii)
SPECIMEN
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM
VARIABLE LIFE INSURANCE POLICY
<PAGE>
[LOGO OF CHUBB LIFEAMERICA APPEARS HERE]
Chubb Life Insurance Company of America
One Granite Place. P.O. Box 515, Concord, New Hampshire 03302 (603)226-5000
Chubb Life Insurance Company of America, a stock company, will pay the Death
Benefit specified herein to the Beneficiary on the death of the Survivor of the
Insureds on receipt of due proof of both Insureds' deaths while this policy was
in force.
This is a Flexible Premium Variable Life Insurance Policy. The Specified Amount
may be increased or decreased by the Owner. Net Premiums will be allocated to
the General Account or to one or more divisions of Chubb Separate Account C
(herein called Separate Account C) as determined by the Owner.
THE POLICY'S ACCUMULATION VALUE IN EACH DIVISION OF SEPARATE ACCOUNT C IS BASED
ON THE INVESTMENT EXPERIENCE OF THAT DIVISION AND MAY INCREASE OR DECREASE
DAILY. THE ACCUMULATION VALUE IS NOT GUARANTEED AS TO DOLLAR AMOUNT.
The policy's Accumulation Value in the General Account will earn interest daily
at a minimum guaranteed effective annual rate of 4%. Interest in excess of the
guaranteed rate may be applied in the calculation of the Accumulation Value at
such increased rates as the Company may determine.
THE AMOUNT OF DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY VARY UNDER
THE CONDITIONS DESCRIBED HEREIN.
This policy is a legal contract between the Owner and Chubb Life Insurance
Company of America.
READ YOUR POLICY CAREFULLY
TWENTY DAY RIGHT TO CANCEL - Please examine this policy carefully. You may
cancel this policy by returning it to our Home Office or to the agent through
whom it was purchased within 20 days after the date you receive the policy or
any longer period as may be required by the Securities and Exchange Commission.
If the policy is returned, it will be deemed void from the beginning and any
premium paid for it will be refunded within 7 days.
[SIGNATURE APPEARS HERE] /s/ Frederick G. Condon
President Secretary
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
Joint Insureds: ***************
***************
Policy Number: ###########
Adjustable Death Benefit Payable On The Death Of The
Survivor Of The Insureds.
Premium Payments May be Made At Any Time And, Within Limits, In Any Amount.
The Specified Amount May Be Increased Or Decreased And
Death Benefit Option May Be Changed.
The Maturity Date May Be Changed Subject To Limitations In The Policy.
Surrender Value, If Any, Payable On Maturity Date.
Additional Benefits, If Any, As Indicated On Page 3.
Some Benefits Reflect Investment Results.
Non-participating - No Dividends.
Form 93-61
<PAGE>
GUIDE TO POLICY PROVISIONS
<TABLE>
<S> <C>
Corridor Percentage Table ............................. 3B
Data Page:
Age at Issue ....................................... 3
Death Benefit Option ............................... 3
Initial Specified Amount ........................... 3
Maturity Date ...................................... 3
Owner .............................................. 3
Policy Expense Charges ............................. 3
Death Benefit:
Changes in Existing Coverage ....................... 11
Death Benefit ...................................... 11
Definitions ........................................... 5
General Provisions:
Annual Report ...................................... 9
Assignment ......................................... 8
Changing the Beneficiary ........................... 8
Illustration of Benefits and Values ................ 9
Incontestability ................................... 7
Misstatement of Age or Sex ......................... 7
Non-Participating .................................. 9
Notice of First Death .............................. 8
Payment of Proceeds ................................ 8
Postponement of Payment ............................ 9
Proceeds ........................................... 8
Reserves ........................................... 9
Simultaneous Death of Insureds ..................... 8
Suicide ............................................ 7
Payment Options:
Death of Payee ..................................... 18
Election of an Option .............................. 18
Interest ........................................... 18
Limitation on Rights of Payee and Claims
of Creditors ................................ 18
Option A - Installments of a Specified Amount ...... 18
Option B - Installments for a Specified Period ..... 18
Option C - Life income ............................. 18
Option D - Interest ................................ 18
Supplementary Contract ............................. 18
Tables of Monthly Installments Under Option B or C . 19
Withdrawal Value ................................... 18
Policy Loans:
Policy Loan Interest ............................... 17
Policy Loan Repayment .............................. 17
Policy Loans ....................................... 17
Types of Policy Loans (Type A and Type B) .......... 17
Policy Values:
Accumulation Value ................................. 11
Basis of Computations .............................. 15
Cash Value ......................................... 14
Continuation of Insurance .......................... 14
Cost of Insurance .................................. 13
Cost of Insurance Discounts ........................ 14
Cost of Insurance Rates ............................ 13
General Account Accumulation Value ................. 12
General Account Interest Rate ...................... 12
Insufficient Cash Value ............................ 14
Minimum Values ..................................... 15
Monthly Deduction .................................. 13
Net Investment Factor .............................. 13
Separate Account Accumulation Values ............... 12
Surrender .......................................... 15
Surrender Charge ................................... 15
Withdrawal of Cash Value (Withdrawal) ............... 14
Premiums:
Allocation of Net Premiums ......................... 10
Grace Period ....................................... 10
Net Premium ........................................ 10
Planned Periodic Premium and Premium Frequency ..... 9
Policy Lapse ....................................... 10
Premium Payments ................................... 9
Reinstatement ...................................... 10
Unscheduled Premiums ............................... 10
Separate Account Provisions:
Addition, Deletion, or Substitution of Investments . 16
Divisions .......................................... 16
Separate Account ................................... 15
Transfers .......................................... 16
Schedule of Surrender Charges ......................... 3A
Table of Monthly Guaranteed Cost of Insurance Rates ... 4
Your Contract:
Change of Maturity Date ............................ 6
Change or Modification ............................. 6
Entire Contract .................................... 6
Maturity Date ...................................... 6
Owner Death ........................................ 6
Termination ........................................ 6
This Policy is a Legal Contract .................... 6
Your Rights Under This Policy ...................... 6
When Coverage Begins ............................... 6
</TABLE>
A copy of the application will be found after the last page of this policy. Any
other benefit or agreements will also be found after the last page.
9361 Page 2
<PAGE>
INSURED: A - JOHN DOE MATURITY DATE: 10/01/2058
INSURED: B - JANE DOE POLICY NUMBER: 0000000
OWNER: JOHN DOE PREMIUM FREQUENCY: ANNUAL
ISSUE DATE: 10/01/1993 DEATH BENEFIT: OPTION 1
POLICY DATE: 10/01/1993 CORRIDOR PERCENTAGE TABLE: STANDARD
AGE AT ISSUE: A - 35 MALE
AGE AT ISSUE: B - 35 FEMALE
RATING CLASS: A - NON-SMOKER
RATING CLASS: B - NON-SMOKER
BENEFICIARY: AS STATED IN APPLICATION OR ENDORSEMENT ATTACHED.
INITIAL PLANNED
MINIMUM PERIODIC
LIFE INSURANCE PREMIUM PREMIUM
$2,000,000 INITIAL SPECIFIED AMOUNT $14,280.00 $14,280.00
JOINT AND LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
IT IS POSSIBLE THAT COVERAGE WILL EXPIRE PRIOR TO THE MATURITY DATE CHOSEN WHEN
EITHER NO PREMIUMS ARE PAID FOLLOWING PAYMENT OF THE INITIAL PREMIUM OR
SUBSEQUENT PREMIUMS ARE INSUFFICIENT TO CONTINUE COVERAGE TO SUCH DATE. IF
CURRENT VALUES CHANGE, THIS WILL ALSO AFFECT COVERAGE.
THE POLICY'S ACCUMULATED VALUE IN THE GENERAL ACCOUNT WILL EARN INTEREST DAILY
AT A MINIMUM GUARANTEED EFFECTIVE ANNUAL RATE OF 4%. THE POLICY'S ACCUMULATED
VALUE HELD IN THE GENERAL ACCOUNT FOR POLICY LOAN COLLATERAL WILL EARN INTEREST
DAILY AT AN EFFECTIVE ANNUAL RATE OF 6%.
ALLOCATIONS OF NET PREMIUMS: 20.0% INTERNATIONAL EQUITY DIVISION
20.0% SMALL COMPANY DIVISION
20.0% EQUITY DIVISION
20.0% BOND DIVISION
20.0% TREASURY MONEY MARKET DIVISION
POLICY EXPENSE CHARGES:
(1) STATE PREMIUM TAX LOAD: 2.5% OF EACH PREMIUM PAID.
(2) FEDERAL DEFERRED ACQUISITION COST (DAC TAX) LOAD: 1.25% OF EACH PREMIUM
PAID.
(3) SALES LOAD: 3.0% OF EACH PREMIUM PAID.
(4) COST OF INSURANCE AS DEFINED ON PAGE 13.
(5) MORTALITY AND EXPENSE RISK CHARGE AS DEFINED ON PAGE 13.
(6) SURRENDER CHARGE ON WITHDRAWAL OR SURRENDER AS DEFINED ON PAGE 15.
Page 3
<PAGE>
POLICY YEAR SURRENDER FACTOR
1 5%
2 4%
3 3%
4 2%
5 1%
6+ 0
SURRENDER CHARGE IS CALCULATED BY MULTIPLYING THE APPROPRIATE SURRENDER FACTOR
BY THE TOTAL PREMIUMS PAID IN THE FIRST POLICY YEAR.
Page 3A
<PAGE>
CORRIDOR PERCENTAGE TABLE
<TABLE>
<CAPTION>
Policy Corridor Policy Corridor Policy Corridor
Year Percentage Year Percentage Year Percentage
<S> <C> <C> <C> <C> <C>
01 656% 26 252% 51 124%
02 631 27 243 52 122
03 607 28 234 53 121
04 584 29 226 54 119
05 561 30 218 55 118
06 540 31 211 56 116
07 519 32 203 57 115
08 499 33 197 58 114
09 480 34 190 59 112
10 462 35 184 60 111
11 444 36 178 6l 110
12 427 37 173 62 108
13 411 38 168 63 107
14 396 39 163 64 105
15 381 40 158 65 104
16 366 41 154
17 353 42 150
18 339 43 146
19 327 44 143
20 314 45 139
21 303 46 136
22 292 47 133
23 281 48 131
24 271 49 128
25 261 50 126
M-NS
</TABLE>
Page 3B
<PAGE>
TABLE OF MONTHLY GUARANTEED COST OF
INSURANCE RATES PER $1,000
POLICY NUMBER 000000
<TABLE>
<CAPTION>
Policy Monthly Policy Monthly Policy Monthly
Year Rate Year Rate Year Rate
<S> <C> <C> <C> <C> <C>
01 0.00021 26 0.16877 51 9.14987
02 0.00067 27 0.19882 52 10.36448
03 0.00121 28 0.23560 53 11.65487
04 0.00186 29 0.28104 54 13.00037
05 0.00266 30 0.33649 55 14.41268
06 0.00360 31 0.40202 56 15.89204
07 0.00476 32 0.47841 57 17.45991
08 0.00613 33 0.56575 58 19.15687
09 0.00775 34 0.66447 59 21.05478
10 0.00962 35 0.77774 60 23.36818
11 0.01184 36 0.91157 61 26.51705
12 0.01443 37 1.08075 62 31.35472
13 0.01748 38 1.26820 63 39.59522
14 0.02104 39 1.50766 64 54.65267
15 0.02522 40 1.79530 65 83.33333
16 0.03014 41 2.13054
17 0.03602 42 2.51400
18 0.04311 43 2.94442
19 0.05167 44 3.42118
20 0.06184 45 3.95359
21 0.07386 46 4.55879
22 0.08791 47 5.25323
23 0.10398 48 6.05602
24 0.12221 49 6.98106
25 0.14352 50 8.01516
M-NS
</TABLE>
Page 4
<PAGE>
DEFINITIONS
Terms or Definitions we identify or define here are some of the terms used
throughout the contract. There are other terms which are explained or defined in
other parts of the text.
Accumulation Value - The Accumulation Value of the policy is equal to the total
of the policy's Accumulation Value in the General Account and the policy's
Accumulation Value in divisions of Separate Account C.
Attained Age - Refers to the age nearest birthday on the Policy Date of each
Insured plus the number of completed policy years.
Beneficiary - The person named to receive the Death Benefit proceeds upon the
death of the surviving Insured. The Beneficiary is as named in the application
unless later changed. There can be one or more Beneficiaries.
Cash Value - The Accumulation Value less any applicable Surrender Charge.
Death Benefit - The amount payable on the death of the surviving Insured while
this policy is in force. It is explained in the Death Benefit section.
Debt - Means the principal of any loan outstanding against this policy, plus any
accrued loan interest which has not been paid.
Initial Minimum Premium - The minimal first year premium amount due and payable
on the Policy Date as shown on Page 3.
Insureds - The persons named as the Insureds on Page 3. The Insureds may be
other than the Owner.
Issue Date - This is the date this policy is issued at the Home Office and is
stated on Page 3. The contestable and suicide periods are measured from the
Issue Date.
Policy Date - The date as shown on Page 3, which is the date requested by the
Owner. If no date is requested, it shall be the Issue Date. The Policy Date is
the date from which policy years, policy months, policy anniversaries and
monthly anniversary days 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 Year - The first policy year is the twelve month period following the
Policy Date. Each twelve month period thereafter makes up the next policy year.
Specified Amount - The face amount of the policy as selected by the Owner. This
amount may increase or decrease subject to the terms of this policy. The Death
Benefit is based on the Specified Amount as described in the Death Benefit
section.
Surrender Charge - A charge to the Accumulation Value in the event of surrender
or withdrawal. It is further explained in the Policy Values section.
Surrender Value - The Cash Value less any debt.
We, Us, Our - Chubb Life Insurance Company of America.
Withdrawal - A payment to you of some portion of the Cash Value accompanied by a
reduction to the Accumulation Value, Specified Amount, and Death Benefit. It is
explained in the Policy Values section.
Written Request - A request in writing signed by you and received by us.
You, Your - The Owner of this policy as shown in the application, unless later
changed following written request. The Owner may be someone other than the
Insureds.
9362 Page 5
<PAGE>
YOUR CONTRACT
This Policy is a Legal Contract - This policy is a legal contract that you have
entered into with us. We promise to provide the insurance benefits described in
this policy. In return, you have submitted a completed application, a copy of
which is attached. You also promise to pay the Initial Minimum Premium. There
is no insurance until the Initial Minimum Premium is paid.
Entire Contract - The entire contract consists of:
(1) this policy form; and
(2) riders, if any, which add benefits to the basic policy; and
(3) endorsements, if any; and
(4) your application, and any amendments or supplemental applications all
of which are added to and made a part of the policy.
When Coverage Begins - The coverage begins on the Policy Date, provided that
the Initial Minimum Premium has been paid, and the policy has been delivered
while there has been no change since the date of the application in the health
of the Insureds or to the answers to the health questions contained in the
application. Any requested increase or addition to coverage will be shown on a
Supplemental Policy Specifications Page. The effective date for such requested
coverage shall begin on the monthly anniversary day that coincides with or next
follows our approval of such increase or addition.
Termination - This policy terminates when any of the following occur:
(1) you request the full surrender of this policy;
(2) the death of the surviving Insured;
(3) the Grace Period ends; or
(4) the policy reaches its Maturity Date.
Maturity Date - The Maturity Date is shown on Page 3 and is the date when
coverage is scheduled to end. If this policy is in force on the Maturity Date:
(1) all insurance benefits end; and
(2) the Accumulation Value less any debt will be paid as you direct in a
lump sum or under a payment option.
The policy may end prior to the Maturity Date if premium payments are
insufficient to continue coverage to such date. Details are provided in the
Policy Lapse provision of the Premiums section.
Change of Maturity Date - The Maturity Date may be changed, upon written request
by you. The new Maturity Date may be any policy anniversary after the end of
the tenth policy year and before the younger Insured's 100th birthday. However,
the new Maturity Date must be at least twelve months from the date we receive
such written request from you.
Change or Modification - Only one of our officers can change or modify this
policy or waive any of our rights or requirements. Any such changes must be in
writing. No agent has the authority to make any changes or waive any of the
terms of your policy.
To the extent permitted by applicable laws and regulations. we may make changes
without your consent to the provisions of this policy to comply with any
applicable federal or state laws including, but not limited to, requirements for
life insurance contracts under the Internal Revenue Code. You have the right to
refuse any such changes. However, we cannot accept responsibility for the tax
treatment of this policy. You should consult your tax advisor regarding taxation
of this policy.
Your Rights Under This Policy - As the Owner, you can exercise every right,
receive every benefit and enjoy every privilege granted by this policy.
Owner Death - Upon death of the Owner. the surviving Insured(s) will assume
ownership, unless otherwise provided. If such ownership goes to joint owners,
they will be joint tenants with right of survivorship and not tenants in common.
9362 Page 6
<PAGE>
GENERAL PROVISIONS
Incontestability - We rely on the statements made in the application for this
policy and any supplemental applications. These statements, in the absence of
fraud, are considered representations and not warranties. No statement may be
used in defense of a claim under this policy unless it is in an application.
We will not contest this policy, except for any increase in the Specified
Amount, after it has been in force during the lifetime of each Insured for a
period of two years from its Issue Date.
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 such increase. Any increase will be contestable, within
the two year period, only with regard to statements concerning the increase.
If we cancel coverage for the Initial Specified Amount, we will refund to you
all premiums paid less any policy loans and withdrawals paid out, or if we are
canceling coverage for an additional Specified Amount or Amounts only, we will
refund to you, the cost of insurance for the additional Specified Amount or
Amounts, charged for the applicable period.
If this policy is reinstated, the incontestability period will start over again
beginning on the reinstatement date, but only for statements made in the
application for reinstatement.
Suicide - If either Insured commits suicide, while sane or insane, within two
years from the Issue Date, our only liability will be a refund of premiums paid
without interest less any policy loans and/or withdrawals. If either Insured
commits suicide, while sane or insane, after such two year period, but within
two years of the effective date of any increase in the Specified Amount, our
only liability with respect to the increase in the Specified Amount will be a
refund of the total cost of insurance for such increase.
If the first death of either Insured is by suicide within any such two year
period, and the surviving Insured was classified by us as insurable on the
Policy Date, at your request, we will issue, 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 the premiums or costs of
insurance was refunded. The Policy Date of the new policy and, the dates of any
increases in the Specified Amount will be the effective dates of the refunded
coverage. The new policy will be on the most similar policy form available at
the time. The premiums for the new policy will depend on the Initial Specified
Amount, rating class, and the attained age and sex of the surviving Insured for
this policy. The rating class for the new policy will be the individual rating
class assigned to the surviving Insured when this policy was underwritten and
may differ from the rating class for this policy.
Misstatement of Age or Sex - If either lnsured's age or sex has been misstated
in the application, we will adjust the proceeds to reflect the correct age or
sex, In such event, the Death Benefit we will pay will be equal to:
(1) The Accumulation Value on the date of death of the surviving Insured less
any outstanding debt; plus
(2) The Death Benefit, less the Accumulation Value on the date of death of
the surviving Insured, multiplied by the ratio of (a) the cost of insurance
actually deducted at the beginning of the policy month in which death
occurs, to (b) the cost of insurance that should have been deducted based
on the correct age or sex.
If either Insured's age or sex has been misstated in the application, the amount
payable under any rider by reason of death of the surviving Insured shall be
that amount of insurance which the rider cost, for the policy month during which
such death occurred, would have purchased had the cost of the benefits provided
under the rider been calculated using the correct cost of insurance rates for
the correct age or sex.
If prior to the death of the surviving Insured, it is found that either
Insured's age or sex has been misstated in the application for the policy or a
rider, the policy cash value will be recalculated from issue, using mortality
charges based on the correct age or sex.
9363 Page 7
<PAGE>
GENERAL PROVISIONS (CONTINUED)
Assignment - While at least one insured is alive you can:
(1) assign policy ownership to someone else; or
(2) assign this policy as security for an obligation. (This does not assign
ownership).
A signed copy of the assignment must be sent to our Home Office on a form we
accept. The assignment will go into effect when it is signed subject to any
payments we make or other actions we take before we record it. We are not
responsible for the validity of any assignment.
Notice of First Death - Due proof of the death of the first of the Insureds to
die must be given to us as soon after the death occurs as is reasonably
possible.
Simultaneous Death of Insureds - When two or more Beneficiaries are designated
to take on the alternative based on the order of the Insureds' death and there
is not sufficient evidence that the Insureds died other than simultaneously; one
half of the death benefit proceeds shall be paid as if Insured A had survived
Insured B; and one half shall be paid as if Insured B had survived Insured A.
This shall not apply if you have provided for a different payment.
Changing the Beneficiary - You can change the Beneficiary at any time during
the lifetime of either Insured. To do so, send a written request to our Home
Office. The request must be on a form we accept. The change will go into effect
when signed subject to any payments we make or other actions we take before we
record the change. A change cancels all prior beneficiary designations.
Proceeds - By proceeds, we mean the amount payable:
(1) on the Maturity Date; or
(2) on surrender; or
(3) on the death of the surviving Insured.
The proceeds on the Maturity Date, as well as on surrender, will be the Cash
Value less any debt. The proceeds on the death of the surviving Insured will be
the Death Benefit less any debt and less any monthly deductions due.
All proceeds are subject to the adjustments provided in the Incontestability,
Suicide, and Misstatement of Age or Sex provisions of this policy and the
restrictions below.
Payment of Proceeds - Death Benefit proceeds or Cash Value proceeds may be paid
in one sum or under our payment options. Before proceeds are paid, they will be
used to pay the interest of anyone to whom this policy has been assigned (see
the Assignment provision). Loans and assignments will be paid in one sum.
If there is no Beneficiary at the time of the death of the surviving Insured,
we will pay the proceeds to you or your estate.
If the death benefit proceeds are not paid in one sum or applied under a payment
option within 30 days after we receive due proof of the death of the surviving
Insured, we will pay interest. Interest will be paid at the rate of 4% a year
from the date we receive such proof until paid. If state law requires payment
of a greater amount, we will pay that amount.
To the extent allowed by law, all payments under this policy will be free from
creditor claims or legal process.
9363 Page 8
<PAGE>
GENERAL PROVISIONS (CONTINUED)
Postponement of Payment - We will usually pay any amounts payable on surrender,
withdrawal, or policy loan allocated to Separate Account C within seven days
after written notice is received. We will usually pay any Death Benefit proceeds
within seven days after we receive due proof of the death of the surviving
Insured. Payment of any amount payable on surrender, withdrawal, policy loan,
or death may be postponed whenever:
(1) 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 Securities and Exchange Commission;
(2) The Securities and Exchange Commission, by order, permits postponement
for the protection of policyowners; or
(3) An emergency exists as determined by the Securities and Exchange
Commission, as a result of which disposal of securities is not reasonably
practicable or it is not reasonably practicable to determine the value of
the net assets of Separate Account C.
Transfers may also be postponed under the above circumstances.
We may defer the portion of any transfer, amount payable on surrender,
withdrawal or policy loan from the General Account for not more than six months.
However, no payment from the General Account to pay premiums on policies with us
will be deferred.
Annual Report - Following each December 31st, we will send you an annual report
which shows the current Cash Value, premiums paid, incurred charges and any
outstanding policy loans for the entire 12 months of the previous calendar year.
The first annual report forwarded to you will only reflect those months of the
previous calendar year during which this policy was in effect.
Illustration of Benefits and Values - We will provide illustrations of Death
Benefits and Cash Values at any time after the Policy Date upon your written
request. This illustration will be based on the existing Cash Value at the time
of request and maximum cost of insurance rates. Additional illustrations will be
made based on the existing Cash Value and current mortality assumptions.
Reserves - Reserves are the amount we hold to pay future benefits. They are not
less than the minimum required by applicable state law. When required, we file
with the state regulatory authorities a statement showing how Reserves are
calculated.
Non-Participating - This policy is a non-participating contract, which means
the following:
(1) Premiums are determined and predetermined on a prospective basis only;
(2) We will not recoup any prior losses by means of a premium change; and
(3) You are not entitled to participate in our profits.
PREMIUMS
Premium Payments - An initial premium is due and payable on the Policy Date. The
initial premium may not be less than the Initial Minimum Premium. All premiums
are payable at our Home Office or to our authorized agent in exchange for a
receipt. This receipt must be signed by an elected officer of the Company and
countersigned by such agent.
Planned Periodic Premium and Premium Frequency - The Planned Periodic Premium
and Premium Frequency, as shown on Page 3, are selected by you. The Planned
Periodic Premium is the amount of premium you intend to pay. The Premium
Frequency is how often you intend to pay the Planned Periodic Premium. Payment
of the Planned Periodic Premium is your option.
We will send you Planned Periodic Premium payment reminder notices. If the mode
of premium payment is preauthorized check, government allotment or payroll
deduction, notice of any Planned Periodic Premium due will not be sent.
Changes in Premium Frequency and increases or decreases in the Planned Periodic
Premium may be made by you by providing us with written notification. We reserve
the right to limit the amount of any increase. No premium payment may be less
than $500.00.
Payment of a Planned Periodic Premium may not prevent this policy from
terminating. Failure to pay a Planned Periodic Premium will not, in itself,
cause this policy to terminate. The policy will terminate only if the conditions
occur as described in the Grace Period provision.
9364 Page 9
<PAGE>
PREMIUMS (CONTINUED)
Net Premium - The Net Premium is equal to the premium paid less the Policy
Expense Charges shown on Page 3.
Allocation of Net Premiums - You will determine the allocation of the net
premiums among the General Account and the divisions of Separate Account C. The
minimum percentage that may be allocated to any of these accounts is 1%.
Unscheduled Premiums - Premium payments in addition to the Planned Periodic
Premium may be made at any time prior to the Maturity Date. We reserve the
right to limit the number and amount of additional premium payments.
If there is an existing policy loan, 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.
Grace Period - We will allow a Grace Period of 61 days. Such Grace Period will
begin on the day the Cash Value less any policy debt on a monthly anniversary
day is not enough to cover the monthly deduction for the month following such
monthly anniversary day. The Cash Value and monthly deduction are defined in the
Policy Values section.
If the surviving Insured dies during the Grace Period, we will deduct any
overdue monthly deduction, which is applicable to the Grace Period, from the
proceeds of the policy.
Policy Lapse - The policy will terminate without value at the end of the Grace
Period unless a premium large enough, after the deduction of the Policy Expense
Charges, to cover monthly deductions for at least three months is paid by the
end of the Grace Period. However, coverage will not end until 31 days after we
have mailed a premium notice to you, and any assignee of record, at the last
known address.
Reinstatement - Reinstatement is the restoration of the policy after it has
lapsed. Following reinstatement, the policy is placed back in force as if it had
never lapsed.
If this policy lapses or terminates as provided in the Grace Period provision,
we will reinstate the policy if we receive:
(1) your written request for reinstatement within five years after the end of
the Grace Period and before the Maturity Date;
(2) satisfactory proof the Insureds, or the surviving Insured, are living and
insurable at the original rating classes or class;
(3) payment of a premium large enough, after the deduction of the Policy
Expense Charges, to cover monthly deductions for at least three policy
months following the effective date of reinstatement; and
(4) payment or reinstatement of any debt against the policy which existed on
the date of termination.
The effective date of a reinstated policy or Reinstatement Date is the date we
approve the application for reinstatement. The Accumulation Value of the policy
on the Reinstatement Date shall be the Accumulation Value on the date of
termination plus the premium received to reinstate the policy. Any Surrender
Charges in effect on reinstatement shall be as defined in the Surrender Charge
provision based on the original Policy Date and duration.
9364 Page 10
<PAGE>
DEATH BENEFIT
Death Benefit - If the Survivor of the Insureds dies while this policy is in
force, we will pay the Death Benefit upon receipt of due proof of the death of
both Insureds. No Death Benefit is paid on the death of the first Insured to
die. The Death Benefit is also subject to all other terms and conditions of this
policy.
The Death Benefit provided by this policy depends on the Death Benefit Option in
effect on the date of death. The Death Benefit Option for this policy is shown
on Page 3.
Option I - Under Option I, the Death Benefit shall be the greater of:
(1) The Specified Amount; or
(2) The Accumulation Value on the date of death multiplied by the corridor
percentage.
Option II - Under Option II, the Death Benefit shall be equal to the Specified
Amount plus the Accumulation Value on the date of death. However. the Death
Benefit can never be less than the Accumulation Value on the date of death
multiplied by the corridor percentage.
The corridor percentage varies by policy duration and is indicated in the
Corridor Percentage Table as shown on Page 3B.
Changes in Existing Coverage - The Initial Specified Amount is shown on Page 3.
At any time after the first policy anniversary, you may, by written request,
increase or decrease the Specified Amount. Any change is subject to the
following conditions:
(1) Any decrease will become effective on the monthly anniversary day that
coincides with or next follows our receipt of the request. At least twelve
months must elapse between decreases. Any such decrease will be deducted in
the following order:
(a) from the most recent Specified Amount increase, if any;
(b) successively from the next most recent Specified Amount increase, if
any;
(c) from the Initial Specified Amount.
(2) Any request for an increase must be applied for on a supplemental
application and shall be subject to evidence satisfactory to us that both
Insureds are living and insurable. At least twelve months must elapse
between requested increases.
(3) Any change approved by us will become effective on the effective date
shown in the Supplemental Policy Data Page, subject to deduction of the
first month's cost of insurance from the Accumulation Value of this policy.
(4) The minimum Specified Amount, after a change, which must be in effect at
any time is $1,000,000.
(5) Any increase or decrease in the Specified Amount must be for at least
$500,000.
(6) You may request in writing to change the Death Benefit Option. if your
request is to change from Option I to Option II, the Specified Amount will
be decreased by the amount of the Accumulation Value. Evidence of
insurability satisfactory to us will be required on a change from Option I
to Option II. If the request is to change from Option II to Option I, the
Specified Amount will be increased by the amount of Accumulation Value. The
effective date of change shall be the monthly anniversary day that
coincides with or next follows the day the request for change is received.
POLICY VALUES
Accumulation Value - The Accumulation Value of the policy is equal to the total
of the policy's Accumulation Value in the General Account and the policy's
Accumulation Value in divisions of Separate Account C.
9365 Page 11
<PAGE>
POLICY VALUES (CONTINUED)
General Account Accumulation Value - The Accumulation Value in the General
Account on the Policy Date is equal to the portion of the net premium which has
been paid and allocated to the General Account, less the portion of the first
monthly deduction allocated to the General Account.
On each monthly anniversary day, the Accumulation Value in the General Account
is equal to (1) plus (2) plus (3) plus (4) minus (5) minus (6) minus (7) where:
(1) is the Accumulation Value in the General Account on the preceding monthly
anniversary day.
(2) is one month's interest on item (1).
(3) is any net premium received since the preceding monthly anniversary day
plus interest from the date the net premium is received to the monthly
anniversary day.
(4) is the sum of all Accumulation Values transferred to the General Account
from a division of Separate Account C since the preceding monthly
anniversary day and interest from the date the Accumulation Value is
transferred to the monthly anniversary day.
(5) is the sum of all Accumulation Values transferred from the General
Account to a division of Separate Account C since the preceding monthly
anniversary day and interest from the date the Accumulation Value is
transferred to the monthly anniversary day.
(6) is all withdrawals from the General Account since the preceding monthly
anniversary day plus interest from the date of the withdrawal to the
monthly anniversary day.
(7) is the portion of the monthly deduction allocated to the Accumulation
Value in the General Account to cover the policy month following the
monthly anniversary day.
On any date other than a monthly anniversary day, the Accumulation Value will be
calculated on a consistent basis.
General Account Interest Rate - The policy's Accumulation Value in the General
Account will earn interest daily at a minimum guaranteed effective annual rate
of 4%. Interest in excess of the guaranteed rate may be applied in the
calculation of the Accumulation Value at such increased rates as we may
determine. The policy's Accumulation Value held in the General Account for
policy loan collateral will earn interest daily at the lesser of an effective
annual rate of 5% or the interest rate currently credited.
Separate Account Accumulation Values - The Accumulation Value in each division
on the Policy Date is equal to the portion of the net premium which has been
paid and allocated to that division, less the portion of the first monthly
deduction allocated to the policy's Accumulation Value in that division.
At the end of each valuation period after the Policy Date, the policy's
Accumulation Value in a division is equal to (1) plus (2) plus (3) minus (4)
minus (5) where:
(1) is the Accumulation Value in the division on the preceding valuation date
multiplied by the Net Investment Factor for the current valuation period.
(2) is any net premium received during the current valuation period which is
allocated to the division.
(3) is all Accumulation Values transferred to the division from another
division or the General Account during the current valuation period.
(4) is all 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.
(5) is all withdrawals from the division during the current valuation period.
In addition, whenever a valuation period includes the monthly anniversary day,
the Accumulation Value at the end of such period is reduced by the portion of
the monthly deduction allocated to the division.
9365 Page 12
<PAGE>
POLICY VALUES (CONTINUED)
Net Investment Factor - The Net Investment Factor measures the investment
performance of a division during a valuation period. The Net Investment Factor
for each division for a valuation period is calculated as (1) divided by (2),
minus (3) where:
(1) is (a) the value of the assets in 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 in the valuation period for
which the Net Investment Factor is being determined, minus (c) the capital
losses, realized or unrealized, charged against those assets during the
valuation period, minus (d) any amount charged against each division for
taxes, or any amount we set aside during the valuation period as a reserve
for taxes attributable to the operation or maintenance of each division.
(2) is the value of the assets in the division at the end of the preceding
valuation period.
(3) is a charge not to exceed .00178083% for each day in the valuation
period. This corresponds to .65% per year for mortality and expense risks.
Monthly Deduction - The monthly deduction for a policy month shall be equal to
the cost of insurance (as described below) and the cost of additional benefits
provided by rider for the policy month.
The monthly deduction for a policy month will be allocated among the General
Account and the divisions of Separate Account C in the same proportion that the
Accumulation Value in the General Account less any debt and the Accumulation
Value in each division bears to the total Accumulation Value of the policy, less
any debt, at the beginning of the policy month.
Cost of Insurance - The cost of insurance for the Insureds is determined on
a monthly basis. The cost of insurance is determined separately for the Initial
Specified Amount and each subsequent increase in Specified Amount. The cost of
insurance is calculated as (1), multiplied by the result of (2) minus (3),
where:
(1) is the cost of insurance rate as described in the Cost of insurance Rates
provision.
(2) is the Death Benefit at the beginning of the policy month, divided by
1.00327374.
(3) is the Accumulation Value at the beginning of the policy month, prior to
the monthly deduction for the cost of insurance.
If the Death Benefit Option is Option I and there have been increases in the
Specified Amount then the Accumulation Value shall be first considered a part of
the Initial Specified Amount. If the Accumulation Value exceeds the Initial
Specified Amount, it shall then be considered a part of the additional Specified
Amounts resulting from increases in the order of such increases.
Cost of Insurance Rates - The monthly cost of insurance rate is based on the
policy year and the sex and rating classes of the Insureds. Monthly cost of
insurance rates will be determined by us based upon expectations as to future
mortality experience. Any changes in cost of insurance rates will apply to all
individuals of the same classes as the Insureds. The rating classes will be
determined separately for the Initial Specified Amount and for any increase in
Specified Amount that requires evidence of insurability. We will consider
changes in the cost of insurance rates at least every five years and when cost
of insurance rates for new issues change. However, the cost of insurance rates
can never be greater than those shown in the Table of Monthly Guaranteed Cost of
Insurance Rates on Page 4.
Such guaranteed maximum rates are based on the 1980 CSO Male/ Female Mortality
Tables with appropriate increases for rated risks.
9366 Page 13
<PAGE>
POLICY VALUES (CONTINUED)
Cost of Insurance Discounts - There will be a non-guaranteed cost of insurance
discount that will be calculated at the beginning of each policy year. The
discount will be a monthly amount that is subtracted from the monthly cost of
insurance charge that is normally calculated. This discount may be suspended at
any time. You will be notified if the discount is suspended. The discount is
calculated as (1) multiplied by the result of (2) minus 13) minus 14), but not
less than zero, where:
(1) is a factor that varies by Specified Amount as follows:
<TABLE>
<CAPTION>
Specified Amount Factor
<S> <C>
Under $5 Million .0001250
$5 Million - $9.999 Million .0002500
$10 Million - $14.999 Million .0003750
Over $15 Million .0004583
</TABLE>
(2) is the Accumulation Value at the beginning of the policy year.
(3) is the Guideline Single Premium at issue, under Section 7702 of the Internal
Revenue Code, increased on a pro-rata basis for any increase in Specified
Amount.
(4) is the outstanding Type A loan balance at the beginning of the policy year.
The discount will be allocated among the General Account and divisions of
Separate Account C using the same percentages used to allocate net premiums.
Cash Value - The Cash Value is equal to the Accumulation Value less a Surrender
Charge.
Continuation of Insurance - In the event Planned Periodic Premium payments are
not continued or if there are changes of Death Benefit Options, mortality
deduction, deductions for additional benefit riders, withdrawals, or policy
loans, as well as varying investment results, insurance coverage under this
policy and any benefits provided by rider will be continued until the Cash
Value, less any debt, is insufficient to cover the monthly deduction, as
provided in the Grace Period provision. This provision shall not continue the
policy beyond the Maturity Date nor continue any rider beyond the date of its
termination, as provided in the rider. If the Cash Value is sufficient to
continue this policy to the Maturity Date, then any remaining Cash Value will be
paid to you if either Insured is then living.
Insufficient Cash Value - If the Cash Value less any debt on a monthly
anniversary day is insufficient to cover the monthly deduction for the month
following such monthly anniversary day, the policy shall terminate as provided
in the Grace Period provision. Any deduction for the cost of insurance after
termination' of insurance shall not be considered a reinstatement of the policy
nor a waiver by us of the termination. Any such deduction shall be credited to
the Cash Value as of the date of the deduction.
Withdrawal of Cash Value (Withdrawal) - Upon written request you may make a
withdrawal from this policy. Any withdrawal is subject to the following
conditions:
(1) The amount withdrawn may not exceed the Cash
(2) The minimum amount that may be withdrawn is $5000.
(3) A charge equal to $100 will be deducted from the amount of each withdrawal.
(4) The Accumulation Value will be reduced by the sum of the withdrawal and a
pro-rata portion of the Surrender Charge in effect on the date of the
withdrawal. The remaining Accumulation Value and schedule of surrender
charges will be determined by multiplying each of these values by a
numerical factor. This numerical factor is equal to
** Amount of Withdrawal **
1- * ---------------------------------------- *
** Cash Value Immediately Before Withdrawal **
(5) The Death Benefit will be reduced by an amount equal to the reduction in
the Accumulation Value. This will result in a reduction of the Specified
Amount if the Death Benefit is Option I by an amount equal to the reduction
in the Accumulation Value. The Specified Amount remaining in force after any
withdrawal must be at least $500.000.
You may allocate the withdrawal among the General Account and the divisions of
Separate Account C. If you do not specify the allocation, then the withdrawal
will be allocated among the General Account and the divisions of Separate
Account C in the same proportion that the Accumulation Value in the General
Account, less any debt, and the Accumulation Value in each division bears to the
total Accumulation Value of the policy, less any debt, on the date of the
withdrawal.
9366 Page 14
<PAGE>
Surrender - Upon written request you may surrender this policy at any time
during the lifetime of either Insured and before the Maturity Date. The amount
payable on surrender of this policy shall be the Surrender Value. If this policy
is surrendered, all insurance in force under this policy shall terminate on the
monthly anniversary day next following our receipt of the surrender request.
If surrender is requested under this section within 30 days after a policy
anniversary, the Cash Value shall not be less than the Cash Value on that
anniversary, less any policy loans or withdrawals made on or after such
anniversary.
Surrender Charge - The Surrender Charge is calculated by multiplying the
surrender factor by the total premiums paid in the first policy year.
The surrender factor will vary by policy year according to the table shown on
Page 3A.
Basis of Computations - Minimum Cash Values and Reserves in the General Account
are based on the 1980 CSO Male/Female Mortality Tables with interest at 40/0 per
year.
The method used in computing Cash Values and Reserves in Separate Account C is
in accordance with actuarial procedures that recognize the variable nature of
Separate Account C. The method used is such that if the Net Investment Factor,
less one, for all divisions of Separate Account C, at all times from the Policy
Date, is equal to an effective annual interest rate of 4%, then the Cash Values
and Reserves in Separate Account C will be at least equal to the minimum Cash
Values and Reserves, which would have been required by the law of the state in
which this policy is delivered, of an equivalent policy in which all net
premiums have been allocated to the General Account.
Minimum Values - All values under this policy are not less than the values
required by the state in which this policy was delivered. A detailed statement
of the method of computation of Cash Values under this policy has been filed
with the insurance department of the state in which this policy was delivered.
SEPARATE ACCOUNT PROVISIONS
Separate Account - The variable benefits under this policy are provided through
investments in Separate Account C. We established Separate Account C as a
separate investment account to support variable life insurance contracts. We
will not allocate assets to Separate Account C to support the operation of any
contracts or policies that are not variable life insurance.
The assets of Separate Account C are owned by us. However. these assets are not
part of our General Account. Income, gains and losses, whether or not realized,
from assets allocated to Separate Account C will be credited to or charged
against the account without regard to our other income, gains or losses.
Assets equal to the reserves and other liabilities of Separate Account C will
not be charged with liabilities that arise from any other business we may
conduct. Such assets shall not be available to general creditors of ours in the
event of our insolvency to the full extent permitted by applicable law. We shall
have the right to transfer to our General Account any assets of Separate Account
C which are in excess of such reserves and other policy liabilities.
Separate Account C is registered with the Securities and Exchange Commission as
a unit investment trust under the Investment Company Act of 1940. Separate
Account C is also subject to the laws of the State of New Hampshire which
regulate the operations of insurance companies incorporated in New Hampshire.
The investment policy of Separate Account C will not be changed without the
approval of the insurance Commissioner of New Hampshire. The approval process
is on file with the Insurance Commissioner of the state in which this policy was
delivered.
9367 Page 15
<PAGE>
SEPARATE ACCOUNT PROVISIONS (CONTINUED)
Divisions - Separate Account C has several divisions. Each division will buy
shares of a separate series of Chubb Series Trust. Each series represents a
separate investment portfolio of Chubb Series Trust. All divisions of Separate
Account C are shown on page 3. You will determine the percentage of net premiums
which will be allocated to each division.
Income, gains and losses, whether or not realized, from the assets of Separate
Account C are credited to or charged against that division without regard to
income, gains or losses in other divisions of Separate Account C or in the
General Account.
We will value the assets of each division of Separate Account C at the end of
each valuation period. A valuation period is the period between two successive
valuation dates. A valuation date is each day that the New York Stock Exchange
is open for business or any other day in which there is material change in the
value of the assets in Separate Account C.
Transfers - You may transfer amounts between the General Account and the
divisions of Separate Account C by sending a written request to us. The total
amount transferred must be at least $1,000. No amounts under $1,000 may be
transferred out of any division of Separate Account C or the General Account
unless such lesser amount constitutes the entire balance. A transfer charge
equal to $100 will be imposed each time amounts are transferred, except with
respect to policy loans. The transfer charge will be deducted from the amount
that is transferred. We will make transfers so that the Accumulation Value on
the date of transfer will not be affected by the transfer except to the extent
of the transfer charge. We may revoke or modify the transfer privilege at any
time, including the minimum amount transferable and the transfer charge.
As long as any portion of the policy's Accumulation Value is allocated to a
division of Separate Account C, the policy's Accumulation Value and Cash Value
will reflect the investment performance of the chosen division(s) of Separate
Account C. The Death Benefit may also reflect the performance of the chosen
division(s) of Separate Account C.
At any time, you may transfer 100% of the policy's Accumulation Value to the
General Account. While 100% of the policy's Accumulation Value is allocated to
the General Account, minimum benefits for the policy will be fixed and
guaranteed.
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) of Separate Account C will be subject to the
transfer charge.
Addition, Deletion, or Substitution of Investments - We reserve the right,
subject to compliance with applicable law, to make additions to, deletions from,
or substitutions for the shares of a series that are held by Separate Account C
or that Separate Account C may purchase. We reserve the right to eliminate the
shares of any series of Chubb Series Trust and to substitute shares of another
series of Chubb Series Trust or of another open-end, registered investment
company, if the shares or series are no longer available for investment or if in
our judgement, further investment in any eligible series should become
inappropriate in view of the purposes of the policy. We will not substitute any
shares attributable to your interest in a division of Separate Account C without
notice to you and prior approval of the Securities and Exchange Commission, to
the extent required by the Investment Company Act of 1940. This shall not
prevent Separate Account C from purchasing other securities for other series or
classes of policies, or from permitting conversion between series or classes of
policies or contracts on the basis of requests made by policyowners.
We reserve the right to establish additional divisions of Separate Account C,
each of which would invest in a new series of Chubb Series Trust or in shares of
another open-end, registered investment company. We also reserve the right to
eliminate existing divisions of Separate Account C.
If we consider it to be in the best interest of persons having voting privileges
under the policies. Separate Account C may be operated as a management company
under the Investment Company Act of 1940; or it may be deregistered under that
Act in the event registration is no longer required or it may be combined with
other separate accounts.
9367 Page 16
<PAGE>
POLICY LOANS
Policy Loans - After the first policy anniversary, a loan will be granted upon
the sole security of the portion of the Cash Value required to repay the loan.
The maximum loan amount is 90% of this policy's Cash Value on the date of loan.
Any prior debts to us against this policy will be deducted from the amount
available for loan.
You may allocate the policy loan among the General Account and the divisions of
Separate Account C. If you do not specify the allocation, then the policy loan
will be allocated among the General Account and the divisions of Separate
Account C in the same proportion that the Accumulation Value in the General
Account, less any debt, and the Accumulation Value in each division bears to the
total Accumulation Value of the policy, less any debt, on the date of the policy
loan. Accumulation Value in each division equal to the policy loan allocated to
each division will be transferred to the General Account and reduce the
Accumulation Value in that division. If loan interest is not paid when due, an
amount of Accumulation Value equal to the loan interest will also be
transferred.
If the policy debt exceeds the policy's Accumulation Value in the General
Account, we will transfer Accumulation Value equal to the excess debt from the
divisions of Separate Account C to the General Account as security for the
excess debt. The amount transferred will be allocated among the divisions in the
same proportion that the Accumulation Value in each division bears to the
policy's total Accumulation Value in all divisions of Separate Account C.
Types of Policy Loans (Type A and Type B) - There are two (2) types of policy
loans which we will grant to you- Type A and Type B. The type of loan which we
will grant depends upon the amount of unloaned Type A balance available at the
time the loan is taken. The unloaned Type A balance is the Cash Value, less the
threshold, and less the sum of any outstanding Type A loans as defined below.
The threshold is the Guideline Single Premium for this policy at issue as
defined in Section 7702 of the Internal Revenue Code of 1986 entitled "Life
Insurance Contract Defined". If the Specified Amount increases, the threshold
will be increased to the threshold at issue times the ratio of the largest
Specified Amount ever existing on the policy to the Initial Specified Amount. If
the Specified Amount decreases, the threshold will not change.
A Type A loan is a policy loan granted by us when the unloaned Type A balance
before the loan is taken exceeds the loan requested.
A Type B loan is a policy loan granted by us when the unloaned Type A balance
before the loan is taken is less than or equal to zero.
When the unloaned Type A balance before the loan is taken exceeds zero, but is
less than the loan requested, a Type A loan equal to the unloaned Type A balance
will be granted by us. The remainder of the requested loan will be a Type B
loan.
We will grant a Type A loan first before a Type B loan. Once a policy loan is
granted, it remains a Type A or a Type B until it is repaid.
Policy Loan Interest - The interest charged by us on a policy loan depends upon
the type of loan granted.
On a Type A loan we will charge interest at an effective annual rate of 6.0%.
On a Type B loan we will charge interest at an effective annual rate of 6.85%.
Interest accrues on a daily basis from the date of the loan and is compounded
annually. Interest unpaid on a loan anniversary is added to and becomes part of
the loan principal and bears interest on the same rate.
Policy Loan Repayment - Any debt may be repaid, in whole or in part, at any time
while this policy is in force. Repayments will be used to reduce policy loans
until fully paid in the following order:
(1) Any or all Type B loans; then
(2) Any or all Type A loans.
When a loan repayment is made, Accumulation Value securing the debt in the
General Account equal to the loan repayment will be allocated among the General
Account and divisions of Separate Account C using the same percentages used to
allocate net premiums.
If the total debt equals or exceeds the Cash Value at any time, this policy will
terminate. The policy will not terminate until 31 days after notice has been
mailed to you and to the assignee, if any, at the address last reported to us.
9368 Page 17
<PAGE>
PAYMENT OPTIONS
Election of an Option - Any proceeds to be paid under this policy may be paid as
an income under any one of the options stated below. The election of an option
or change of prior election must be made in writing to us at our Home Office. If
an option is not chosen by you prior to the death of the surviving Insured, the
primary Beneficiary may make such election.
Unless we agree otherwise, any such payments will be made only to a natural
person taking in his own right. An option may be elected only if the amount of
the proceeds is $2,000 or more. We may change the interval of payments to 3.6,
or 12 months, if necessary to increase the guaranteed payments to at least
$20.00 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 us. The amount
of interest payment is calculated at the compound rate of 3% per year. Interest
payments will be made in 12-, 6-, 3-, or 1-month intervals as agreed upon.
Supplementary Contract - When the proceeds of this policy become payable, a
supplementary contract setting forth the terms of the option chosen will be
issued to the Payee. The first payment under Option A, B, or C shall be payable
on the effective date of such option. The first payment under Option D shall be
payable at the end of the first agreed payment interval.
Interest - 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 at our sole discretion.
Withdrawal Value - Unless otherwise stated in the election of an option, the
Payee 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 interest.
For Option B 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.
For Option 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, the Payee must submit evidence of insurability.
Such evidence must be satisfactory to us. Otherwise, the Withdrawal Value shall
be the commuted value of any remaining guaranteed payments. In this event the
payments will be resumed at the end of the guaranteed period if the Payee should
be alive on that date. The payments will then continue for the lifetime of the
Payee.
Under any of these options. the Payee shall have the right to receive the
Withdrawal Value in partial amounts. However, the partial amounts shall not be
less than the smaller of the Withdrawal Value or $100.
Death of Payee - If the Payee 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.
Limitation on Rights of Payee and Claims of Creditors - Neither the amount
retained under an option nor any payment made under an option can be assigned or
pledged. To the extent permitted by law such amounts or payments shall not be
subject to claims of creditors or legal process.
9368 Page 18
<PAGE>
SETTLEMENT OPTIONS
TABLES OF MONTHLY INSTALLMENTS UNDER OPTION B OR C
Monthly installments are shown for each $1,000 of net proceeds applied. The ages
shown are ages nearest birthday when the first monthly installment is payable.
OPTION B TABLE
INSTALLMENTS FOR A SPECIFIED PERIOD
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Years Monthly Years Monthly Years Monthly Years Monthly Years Monthly
Installment Installment Installment Installment Installment
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $84.47 7 $13.16 13 $7.71 19 $5.73 25 $4.71
2 42.86 8 11.68 14 7.26 20 5.51 26 4.59
3 28.99 9 10.53 15 6.87 21 5.32 27 4.48
4 22.05 10 9.61 16 6.53 22 5.15 28 4.37
5 17.91 11 8.86 17 6.23 23 4.99 29 4.27
6 15.14 12 8.24 18 5.96 24 4.84 30 4.18
Multiply the monthly installment by 11.84 for annual, by 5.96 for semi-annual or by 2.99 for quarterly installments.
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
OPTION C TABLE
LIFE INCOME
- ------------------------------------------------------------------------------------------------
Attained Attained
Age of Payee MONTHLY INSTALLMENTS Age of Payee MONTHLY INSTALLMENTS
- ------------------------------------------------------------------------------------------------
GUARANTEED GUARANTEED
Male Female 10 Years 15 Years 20 Years Male Female 10 Years 15 Years 20 Years
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
16 or 21 or
Under Under $2.83 $2.82 $2.81 51 56 $4.60 $4.44 $4.24
17 22 2.85 2.84 2.84 52 57 4.69 4.52 4.30
18 23 2.88 2.87 2.86 53 58 4.79 4.60 4.36
19 24 2.90 2.89 2.88 54 59 4.90 4.69 4.41
20 25 2.93 2.92 2.91 55 60 5.01 4.77 4.47
21 26 2.95 2.95 2.93 56 61 5.12 4.86 4.53
22 27 2.98 2.97 2.96 57 62 5.23 4.94 4.59
23 28 3.01 3.00 2.99 58 63 5.35 5.03 4.64
24 29 3.04 3.03 3.02 59 64 5.48 5.12 4.70
25 30 3.08 3.07 3.05 60 65 5.61 5.21 4.75
26 31 3.11 3.10 3.08 61 56 5.74 5.30 4.80
27 32 3.14 3.13 3.11 62 67 5.87 5.39 4.85
28 33 3.18 3.17 3.15 63 68 6.01 5.48 4.90
29 34 3.22 3.20 3.18 64 69 6.16 5.56 4.94
30 35 3.26 3.24 3.22 65 70 6.30 5.65 4.98
31 36 3.30 3.28 3.25 66 71 6.45 5.73 5.02
32 37 3.34 3.32 3.29 67 72 6.60 5.82 5.05
33 38 3.39 3.36 3.33 68 73 6.76 5.90 5.09
34 39 3.43 3.41 3.37 69 74 6.91 5.97 5.12
35 40 3.48 3.45 3.41 70 75 7.07 6.05 5.14
36 41 3.53 3.50 3.45 71 76 7.23 6.12 5.17
37 42 3.59 3.55 3.50 72 77 7.38 6.18 5.19
38 43 3.64 3.60 3.54 73 78 7.54 6.24 5.20
39 44 3.70 3.65 3.59 74 79 7.69 6.30 5.22
40 45 3.76 3.71 3.64 75 80 7.84 6.35 5.23
41 46 3.82 3.77 3.69 76 81 7.98 6.39 5.24
42 47 3.88 3.82 3.74 77 82 8.13 6.43 5.25
43 48 3.95 3.88 3.79 78 83 8.26 6.47 5.26
44 49 4.02 3.95 3.84 79 84 8.39 6.50 5.26
45 50 4.09 4.01 3.90 80 or 85 or 8.51 6.53 5.27
46 51 4.17 4.08 3.95 Over Over
47 52 4.25 4.15 4.01
48 53 4.33 4.22 4.07
49 54 4.42 4.29 4.12
50 55 4.50 4.37 4.18
</TABLE>
Multiply the monthly installment by 11.80 for annual, by 5.93 for semi-annual or
by 2.98 for quarterly installments.
9369 Page 19
<PAGE>
ENDORSEMENTS:
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
Adjustable Death Benefit Payable On The Death Of The
Survivor Of The Insureds.
Premium Payments May be Made At Any Time And, Within Limits. In Any Amount.
The Specified Amount May Be Increased Or Decreased And
Death Benefit Option May Be Changed.
The Maturity Date May Be Changed Subject To Limitations In The Policy.
Surrender Value, If Any, Payable On Maturity Date.
Additional Benefits, If Any, As Indicated On Page 3.
Some Benefits Reflect Investment Results.
Non-participating - No Dividends.
9369
<PAGE>
Exhibit 1(e)(iii)
FORM OF RIDERS
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
- --------------------------------------------------------------------------------
Chubb Life Insurance Company of America
One Granite Place, P.O. Box 515, Concord, New Hampshire 03302 (603) 226-5000
GUARANTEED DEATH BENEFIT RIDER
Effective Date -
This Rider is part of the policy to which it is attached. It takes effect on the
Policy Date of the policy unless a later effective date is shown above. In this
rider, "we", "us", or "our" means the Chubb Life Insurance Company of America;
"you" means the Owner of the policy; and "insured" means the person named on
Page 3 of the policy.
Consideration - In return for the payment of the monthly deductions and receipt
of any application for this rider, we will provide the benefit described in this
rider.
Benefit - We guarantee that the death benefit of the policy will be no less than
the Specified Amount, regardless of the investment experience of the divisions
within the Separate Account, provided that the cumulative minimum premium
requirements have been satisfied.
This Rider has no loan value and no surrender value.
Cumulative Minimum Premium Requirement - On each monthly anniversary day, we
will determine if the cumulative minimum premium requirement for this rider has
been met. The cumulative minimum premium requirement is met provided that (a)
is greater than or equal to (b), where:
(a) is the sum of all previous premium payments under the policy less any policy
loans or withdrawals; and
(b) is the minimum premium, as shown on Page 3 of the policy, divided by twelve,
multiplied by the number of completed policy months.
If this requirement has been met, the policy is guaranteed to remain in force
during the next policy
month. If this requirement is not met, we will notify you of the premium
payments required in order to continue benefits under this rider. A grace period
of 61 days will be provided. If the necessary premiums are not received during
this grace period, this rider will terminate without value.
Any increase in the Specified Amount will require an increase in the minimum
premium. The cumulative minimum premium requirement will be the sum of the
minimum premium requirements for the Initial Specified Amount and each
respective increase to the Specified Amount. The portion of the minimum premium
associated with any increase in the Specified Amount will be based on the
attained age of the Insured as of the date of increase.
Monthly Deduction - The monthly deduction for this rider will be (a), multiplied
by (b), divided by $1,000, where:
(a) is the Specified Amount of the policy; and
(b) is $0.01.
Termination - This Rider will cease as soon as one of the following occurs:
(1) The cumulative minimum premium requirement remains unsatisfied at the end of
the Grace Period.
(2) The policy is surrendered, exchanged, or lapsed.
(3) The Maturity Date of the policy is attained.
(4) We receive a proper written request to terminate this rider.
[SIGNATURE APPEARS HERE] [SIGNATURE APPEARS HERE]
President Secretary
P94-64
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
- --------------------------------------------------------------------------------
Chubb Life Insurance Company of America
One Granite Place, P.O. Box 515, Concord, New Hampshire 03302 (603) 226-5000
JOINT AND LAST SURVIVOR
GUARANTEED DEATH BENEFIT RIDER
Effective Date -
This Rider is part of the policy to which it is attached. It takes effect on the
Policy Date of the policy unless a later effective date is shown above. In this
rider, "we", "us", or "our" means the Chubb Life Insurance Company of America;
"you" means the Owner of the policy; and "Insureds" means the persons named on
Page 3 of the policy.
Consideration - In return for the payment of the monthly deductions and receipt
of any application for this rider, we will provide the benefit described in this
rider.
Benefit - We guarantee that the death benefit of the policy will be no less than
the Specified Amount, regardless of the investment experience of the divisions
within the Separate Account, provided that the cumulative minimum premium
requirements have been satisfied.
This Rider has no loan value and no surrender value.
Cumulative Minimum Premium Requirement - On each monthly anniversary day, we
will determine if the cumulative minimum premium requirement for this rider has
been met. The cumulative minimum premium requirement is met provided that (a)
is greater than or equal to (b), where:
(a) is the sum of all previous premium payments under the policy less any policy
loans or withdrawals; and
(b) is the minimum premium, as shown on Page 3 of the policy, divided by twelve,
multiplied by the number of completed policy months.
If this requirement has been met, the policy is guaranteed to remain in force
during the next policy
month. If this requirement is not met, we will notify you of the premium
payments required in order to continue benefits under this rider. A grace period
of 61 days will be provided. If the necessary premiums are not received during
this grace period, this rider will terminate without value.
Any increase in the Specified Amount will require an increase in the minimum
premium. The cumulative minimum premium requirement will be the sum of the
minimum premium requirements for the Initial Specified Amount and each
respective increase to the Specified Amount. The portion of the minimum premium
associated with any increase in the Specified Amount will be based on the
attained joint equal age of the Insureds as of the date of increase.
Monthly Deduction - The monthly deduction for this rider will be (a), multiplied
by (b), divided by $1,000, where:
(a) is the Specified Amount of the policy; and
(b) is $0.01.
Termination - This Rider will cease as soon as one of the following occurs:
(1) The cumulative minimum premium requirement remains unsatisfied at the end of
the Grace Period.
(2) The policy is surrendered, exchanged, or lapsed.
(3) The Maturity Date of the policy is attained.
(4) We receive a proper written request to terminate this rider.
[SIGNATURE APPEARS HERE] [SIGNATURE APPEARS HERE]
President Secretary
P94-65
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
- --------------------------------------------------------------------------------
Chubb Life Insurance Company of America
One Granite Place. P.O. Box 515, Concord, New Hampshire 03302 (603) 226-5000
AUTOMATIC INCREASE RIDER
Effective Date -
This Rider is part of the policy to which it is attached. It takes effect on the
Policy Date of the policy unless a later effective date is shown above. In this
rider, "we", "us", or "our" means Chubb Life Insurance Company of America; "you"
means the Owner of the policy; and "Insured" means the person named on Page 3 of
the policy.
Consideration - In return for the payment of the monthly deductions and receipt
of any application for this rider, we will provide the benefit described in this
rider.
Benefit - We will increase the Specified Amount of the policy on the first day
of each new policy year by an amount equal to a percentage of the Specified
Amount for the past policy year.
Increase Percentage Factor - The increase percentage factor has been selected by
you and is shown on Page 3 of the policy.
Expiry Date - The Expiry Date of this rider is shown on Page 3.
Monthly Deduction - The monthly deduction for this rider will be (a), multiplied
by (b), divided by $1,000, where:
(a) is the monthly rate for this rider, based on the age at issue. shown on
Page 3 of the policy; and
(b) is the policy's Specified Amount.
Maximum Amount of Increase - The maximum amount of all increases from the
operation of this rider will be equal to the smaller of (a) or (b), where:
(a) is three (3) times the sum of the Initial Specified Amount of the policy;
and
(b) is $10,000,000.
Termination - This Rider will cease as soon as one of the following occurs:
(1) The monthly deduction for this rider remains unpaid at the end of the Grace
Period.
(2) The policy is surrendered, exchanged, or lapsed.
(3) The maturity date of the policy is attained.
(4) We receive a proper written request to terminate this Rider.
(5) The amount of any increase in the Specified Amount of the policy as a result
of the operation of this rider is less than $10,000.
(6) The maximum amount of increases permitted under this rider has been
attained.
(7) The Expiry Date for this Rider shown on Page 3 is attained.
[SIGNATURE APPEARS HERE] [SIGNATURE APPEARS HERE]
President Secretary
P94-59
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
- --------------------------------------------------------------------------------
Chubb Life Insurance Company of America
One Granite Place, P.O. Box 515, Concord, New Hampshire 03302 (603) 226-5000
JOINT AND LAST SURVIVOR
AUTOMATIC INCREASE RIDER
Effective Date -
This Rider is part of the policy to which it is attached. It takes effect on the
Policy Date of the policy unless a later effective date is shown above. In this
rider, "we", "us", or "our" means Chubb Life Insurance Company of America;
"you" means the Owner of the policy; and "Insureds" means the persons named on
Page 3 of the policy.
Consideration - In return for the payment of the monthly deductions and receipt
of any application for this rider, we will provide the benefit described in this
rider.
Benefit - We will increase the Specified Amount of the policy on the first day
of each new policy year by an amount equal to a percentage of the Specified
Amount for the past policy year.
Increase Percentage Factor - The increase percentage
factor has been selected by you and is shown on Page 3 of the policy.
Expiry Date - The Expire Date of this rider is shown on Page 3.
Monthly Deduction - The monthly deduction for this
rider will be (a), multiplied by (b), divided by $1,000, where:
(a) is the monthly rate for this rider, based on the joint equal age at issue
shown on Page 3 of the policy; and
(b) is the policy's Specified Amount.
Maximum Amount of Increase- The maximum amount
of all increases from the operation of this rider will be equal to the smaller
of (a) or (b), where:
(a) is three (3) times the sum of the Initial Specified Amount of the policy;
and
(b) is $10,000,000.
Termination - This Rider will cease as soon as one of the following occurs:
(1) The monthly deduction for this rider remains unpaid at the end of the Grace
Period.
(2) The policy is surrendered, exchanged, or lapsed.
(3) The maturity date of the policy is attained.
(4) We receive a proper written request to terminate this Rider.
(5) The amount of any increase in the Specified Amount of the policy as a result
of the operation of this rider is less than $10,000.
(6) The maximum amount of increases permitted under this rider has been
attained.
(7) The Expiry Date for this Rider shown on Page 3 is attained.
[SIGNATURE APPEARS HERE] [SIGNATURE APPEARS HERE]
President Secretary
P94-60
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
- --------------------------------------------------------------------------------
Chubb Life Insurance Company of America
One Granite Place, P.O. Box 515, Concord, New Hampshire 03302 (603) 226-5000
JOINT AND LAST SURVIVOR
POLICY EXCHANGE OPTION RIDER
Effective Date -
This Rider is part of the policy to which it is attached. It takes effect on the
Policy Date of the policy unless a later effective date is shown above. In this
rider, "we", "us", or "our" means Chubb Life Insurance Company of America; "you"
means the Owner of the policy; and "Insureds" means the persons named on Page 3
of the policy.
Consideration - In receipt of any application for this rider, we will provide
the benefit described in this rider.
Benefit - We will exchange the policy for two individual policies, one on the
life of each of the Insureds, subject to the conditions stated in this rider.
Exchange Option Events - This option may be exercised only if one of the
following events occurs:
(1) A final divorce decree on the Insureds' marriage must be in effect for at
least 180 days but not more than one year, before an exchange takes place.
(2) The Federal Tax Law is changed, resulting in:
(a) the repeal of the unlimited marital deduction provision; or
(b) a reduction of at least 50% in the maximum federal estate tax bracket.
This option may be exercised on or within 180 days after:
(1) A final divorce decree on the Insureds' marriage has been in effect for 180
days; or
(2) The effective date of the Federal Tax Law change as described above.
In addition, the Conditions for Exchange listed below must be met.
Conditions for Exchange -
(1) The policy and this rider must be in force and not within the Grace Period.
(2) The Owner of each new policy must have an insurable interest in the
Insured's life.
(3) The Owner for each new policy and the Insured must sign the application for
the new policy.
(4) Your written request satisfactory to us must be received at the Home Office
on or within 180 days after the date an exchange option event occurs.
(5) Evidence of the exchange option event satisfactory to us must be received at
the Home Office on or within 180 days after the date an exchange option
event occurs.
(6) This policy must be returned to us before the exchange date.
(7) This policy, including any attached riders, will terminate on the day before
the exchange date. This date is the termination date.
(8) Both of the Insureds under this policy must be living on the exchange date.
(9) Any assignee must agree in writing to the exchange.
P94-61
<PAGE>
New Policies -
(1) Each new policy will be for one half of this policy's Specified Amount.
(2) The exchange date will be this policy's Monthly Anniversary Day following
receipt of your request for exchange. The Issue Date and Policy Date for
each new policy will be the exchange date.
(3) Each new policy will be a whole life plan being issued by us on the Policy
Date of the new policy.
(4) Premiums for each new policy will be based on our published rates on the
Policy Date of the new policy. The premiums will depend on each new policy's
plan, initial specified amount, rating class, and the Insured's attained
age.
(5) The rating class for each new policy will be the individual rating class
assigned to each Insured when this policy was underwritten.
(6) Each new policy will be subject to one half the amount of any outstanding
loans on this policy. However, the outstanding loans on a new policy cannot
exceed its loan value.
(7) The time periods in the Suicide and incontestability provisions of
each new policy will be measured from the Issue Date of this policy.
(8) Each new policy will be subject to any existing assignment of this policy.
Additional benefit riders will be available with each new policy only with our
consent. Evidence of insurability at the Insured's attained age will be
required if additional benefit riders are requested. All riders on each new
policy will be subject to our rules on the Policy Date of the new policy.
Exchange Values - One half of the Accumulation Value of this policy will be
allocated to each new policy on the exchange date. This Rider has no cash or
loan value.
Termination - This Rider will cease as soon as one of the following occurs:
(1) One of the Insureds under this policy dies.
(2) This policy is surrendered, exchanged, or lapsed.
(3) We receive a proper written request to terminate this Rider.
[SIGNATURE APPEARS HERE] [SIGNATURE APPEARS HERE]
President Secretary
P94-61
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
- --------------------------------------------------------------------------------
Chubb Life Insurance Company of America
One Granite Place, P.O. Box 515, Concord, New Hampshire 03302 (603) 226-5000
EXTENSION OF MATURITY DATE RIDER
Effective Date -
This rider is part of the policy to which it is attached. It takes effect on the
effective date of the policy unless a later effective date is shown above. In
this rider, "we", "us" or "our" means the Chubb Life Insurance Company of
America; "you" means the Owner of the policy; and "Insured(s)" means the
person(s) named on the Data Page.
The Maturity Date may be extended beyond that date otherwise defined in the
policy by written request. The new Maturity Date will be that requested by you.
If you elect to extend the original Maturity Date, you may revoke this election
in writing at any time prior to the original Maturity Date.
After the original Maturity Date:
(1) No new premiums will be accepted by us:
(2) We will continue to credit interest to the policy's Accumulation Value of
the General Account in the same manner;
(3) The Accumulation Value in each division of Separate Account C will continue
to be calculated in the same manner;
(4) The Death Benefit will always be equal to the Accumulation Value of the
policy;
(5) Interest on any policy loans will continue to accrue and become part of any
debt;
(6) We will deduct no more cost of insurance charges.
[SIGNATURE APPEARS HERE] [SIGNATURE APPEARS HERE]
President Secretary
P94-66
<PAGE>
Exhibit 1(f) (i)
AMENDED AND RESTATED
CHARTER
OF
CHUBB LIFE INSURANCE COMPANY
OF AMERICA
<PAGE>
STATE OF NEW HAMPSHIRE
Filing fee: $35.00 Form No. 16-A
+ License Fee: $ 0 RSA 293-A:59
------ (See Section 136 II 61 and 64
Total fees: $35.00 & IV and Note 7)
Use black print or type.
Leave 1" margins both sides.
RESTATED
ARTICLES OF INCORPORATION
INCLUDING DESIGNATED AMENDMENT(S)
OF
THE VOLUNTEER STATE LIFE INSURANCE COMPANY
------------------------------------------
Now Known as
CHUBB LIFE INSURANCE COMPANY OF AMERICA
PURSUANT TO THE PROVISIONS OF SECTIONS 59, 61 AND 64 OF THE NEW HAMPSHIRE
BUSINESS CORPORATION ACT, THE UNDERSIGNED CORPORATION, PURSUANT TO A RESOLUTION
DULY ADOPTED BY ITS BOARD OF DIRECTORS, HEREBY ADOPTS THE FOLLOWING RESTATED
ARTICLES OF INCORPORATION, INCLUDING DESIGNATED AMENDMENT(S) ADOPTED BY ITS
SHAREHOLDERS:
(Here insert the Restated Articles of Incorporation, as amended including the
Designated Amendments.)
See Attached Exhibit A
[Attach additional sheet(s) for more space.
Insert corporate name at top of each page.]
Page 1 of 3
<PAGE>
RESTATED ARTICLES OF INCORPORATION Form No. 16-A
INCLUDING DESIGNATED AMENDMENT(S) (Cont.)
OF THE VOLUNTEER STATE LIFE INSURANCE COMPANY
------------------------------------------
Now Known as
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Except for the Designated Amendment(s) to Article(s) (Note 1)
1, 2, 4, 5, 6 and 7
- ------------------------------------------------------------
the Restated Articles of Incorporation correctly set forth without change the
corresponding provisions of the Articles of Incorporation as previously amended,
and the Restated Articles of Incorporation together with the Amendment(s)
designated herein supersede the original Articles of Incorporation and all
amendments to the Articles.
ARTICLES PURSUANT TO SECTION 61 OF THE NEW HAMPSHIRE BUSINESS CORPORATION ACT
RELATIVE TO AMENDMENT TO ARTICLES OF INCORPORATION:
FIRST: The designated amendments to the Articles of Incorporation above set
forth were adopted by the shareholders (Note 2) of the corporation on May 24,
------
1991, in the manner prescribed by the New Hampshire Business Corporation Act.
--
SECOND: The number of shares of the corporation outstanding at the time of
such adoption was 600,000; and the number of shares entitled to vote thereon
-------
was 600,000.
-------
THIRD: The designation and number of outstanding shares of each class
entitled to vote thereon as a class were as follows: (Note 3)
Number of
Class Shares
----- -------
Not Applicable
FOURTH: The number of shares voted for such amendment was 600,000; and the
-------
number of shares voted against such amendment was -0-. (Note 3)
---
Page 2 of 3
<PAGE>
RESTATED ARTICLES OF INCORPORATION Form No. 16-A
INCLUDING DESIGNATED AMENDMENT(S) (Cont.)
OF THE VOLUNTEER STATE LIFE INSURANCE COMPANY
------------------------------------------
Now Known as
CHUBB LIFE INSURANCE COMPANY OF AMERICA
FIFTH: The number of shares of each class entitled to vote thereon as a
class voted for and against such amendment, respectively, was: (Note 3)
Number of Shares voted
----------------------
Class For Against
----- --- -------
Not Applicable
SIXTH: The manner in which any exchange, reclassification, or cancellation
of issued shares provided for in the amendment shall be effected is as follows:
(Note 4)
Not Applicable
SEVENTH: The manner in which such amendment effects a change in the amount
of stated capital, and the amount of stated capital, expressed in dollars, as
changed by such amendment, are as follows: (Note 3)
Not Applicable
Dated as of July 1, 1991
------------- --
THE VOLUNTEER STATE LIFE INSURANCE COMPANY
Now Known as CHUBB LIFE INSURANCE COMPANY
OF AMERICA (Note 5)
----------------------------------
By /s/ John F. Swope (Note 6)
----------------------------------
Signature of its ------ President
John F. Swope
-----------------------------------------
Print or type name
and /s/ Charles C. Cornelio (Note 6)
------------------------------------
Signature of its Asst. Secretary
------
Charles C. Cornelio
-----------------------------------------
Print or type name
Mail fee and DUPLICATE ORIGINALS (ORIGINAL SIGNATURES ON
-------------------------------------------
BOTH) to: Secretary of State, Rm. 204, State House,
-----
Concord, NH 03301-4989
Approved by
/s/ Louis E. Bergeron
- ----------------------------
Louis E. Bergeron
Commissioner
Effective July 1, 1991
Page 3 of 3
<PAGE>
EXHIBIT A
AMENDED AND RESTATED CHARTER
----------------------------
CHUBB LIFE INSURANCE COMPANY OF AMERICA
formerly
THE VOLUNTEER STATE LIFE INSURANCE COMPANY
1. Name. The name of the corporation is Chubb Life Insurance Company of
-----
America.
2. Principal Purpose. The principal purpose or purposes for which this
------------------
corporation is established are to insure persons against loss of life,
illness, or personal injury resulting from cause, to make contracts for
endowments, to grant and purchase annuities, to insure persons and
corporations against loss on account of liability to others for personal
injuries, fatal or otherwise, to issue and become surety upon official,
indemnity and other bonds, and in general to conduct the business of life,
health, casualty, liability and indemnity insurance, in any or all its
branches, to invest its funds in real estate, personal property and
securities, subject to such limitations as may be provided by law, and to
manage, convey, mortgage, and pledge the same or any part thereof as
required in the transaction of its business, and to purchase, take, receive,
lease, or otherwise acquire, own, hold, improve, use and otherwise deal in
and with, real and personal property, wherever situated; and the corporation
may engage in any other business for which a corporation may now or
hereafter be organized under and may exercise all general powers conferred
by applicable law."
3. Shares. The aggregate number of shares which the corporation shall have
-------
authority to issue is Six Hundred Thousand (600,000) shares of stock, of
five dollar ($5.00) par value, all of the same class.
4. Amendment. The corporation reserves the right to amend, alter, change or
----------
repeal any provision contained in this Amended and Restated Charter, in the
manner now or hereafter prescribed by statute, and all rights conferred upon
stockholders herein are granted subject to this reservation.
5. Directors Liability. A director or officer of the corporation shall not be
--------------------
personally liable to the corporation or its stockholders for monetary
damages for breach of fiduciary duty as a director or officer, or both,
except with respect to (a) any breach of the director's or officer's duty of
loyalty to the corporation or its stockholders, (b) acts or omissions which
are not in good faith or which involve intentional misconduct or a knowing
violation of law, (c) actions for
Page 1 of 2
<PAGE>
which a director may be liable under RSA 293-A:48, and (d) any transaction
from which the director, officer or both derived an improper personal
benefit.
6. Indemnification. The corporation shall have the power to indemnify its
----------------
directors to the fullest extent permitted by law.
7. Re-Domestication. This Amended and Restated Charter is meant to be the
-----------------
Amended and Restated Charter of the same company incorporated in the State
of Tennessee on October 9, 1903, under the name "Volunteer State Life
Insurance Company," as, re-domesticated to the State of New Hampshire, with
all of the corporate incidents continuing, including, but not limited to,
assets, liabilities and other obligations, licenses, contracts, rates,
policy forms and agent appointments.
Page 2 of 2
<PAGE>
Exhibit 1(f)(ii)
BY-LAWS
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
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As Adopted Effective July 1, 1991
BY-LAWS
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Incorporated under the laws of the State of New Hampshire
ARTICLE I
Offices
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The corporation shall maintain a registered office in the State of New Hampshire
as required by law. The corporation may also have offices in such other places
as the Board of Directors may from time to time appoint or as the business of
the corporation may require.
ARTICLE II
Corporate Seal
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The seal of the corporation shall consist of a flat-faced circular die with the
words and figures, "Chubb Life Insurance Company of America, Incorporated, New
Hampshire" cut or engraved thereon.
ARTICLE III
Meetings of Stockholders
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Section 1. Place of Meeting. All meetings of the stockholders shall be held at
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the office of the corporation in Concord, New Hampshire, unless some other
place, which may be either within or outside of the State of New Hampshire, is
stated in the call thereof.
Section 2. Annual Meeting. An annual meeting of the stockholders shall be held
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on the first Monday in May each year if not a legal holiday, and if a legal
holiday then on the next secular day following, at which meeting the
stockholders shall elect by a requisite vote as hereinafter provided, a Board of
Directors and transact such other business as may properly be brought before the
meeting. In the event that such annual meeting be omitted by oversight or
otherwise on the date herein provided, a subsequent meeting may be held in place
thereof, and any business transacted, votes had, or elections held at such
meeting shall be of the same force and effect as if transacted, had, or held at
such annual meeting.
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Section 3. Special Meetings. Special meetings of the stockholders for any
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purpose or purposes shall be called by the Secretary upon the request of the
Chairman, of a majority of the Board of Directors or holders of two-fifths or
more of the issued and outstanding stock having voting rights. All such requests
to the Secretary for the calling of stockholders' meetings shall state the time,
place and purpose of the meeting which is requested.
Section 4. Notice of Meetings of Stockholders. Written notice of all meetings,
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annual and special, of the stockholders stating the place, day and hour thereof
and in case of special meetings, the purpose or purposes for which the meeting
is called, shall be delivered not less than ten (10) nor more than fifty (50)
days before the date of the meeting, either personally or by mail to each
stockholder of record entitled to vote at said meeting. If mailed, such notice
shall be deemed to be delivered when deposited in the United States mail
addressed to the stockholder at his address as it appears on the stock transfer
books of the corporation, first class postage prepaid. Meetings may be held
without notice provided all stockholders entitled to vote shall sign, either
before or after the time stated in the notice, a written waiver of notice.
Section 5. Matters Considered at Special Meetings. Business transacted at such
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special meetings shall be confined to the objects stated in the call and matters
reasonably incident thereto unless all stockholders entitled to vote thereat are
present in person or by proxy and vote in favor of the action taken, or, if not
present, sign a written consent to the action taken.
Section 6. Quorum. The holders of a majority of the outstanding stock entitled
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to vote at any meeting who are present in person or represented by proxy shall
be requisite to and shall constitute a quorum at all meetings of the
stockholders for the transaction of business, except as otherwise provided for
by statute, by the charter documents or by these By-laws. If, however, such
quorum shall not be present at any meeting of the stockholders, the stockholders
entitled to vote thereat present in person or represented by proxy shall have
power to adjourn the meeting from time to time without notice, other than
announcement at the meeting, until a quorum shall be present or represented. At
such adjourned meeting at which a quorum shall be present or represented all
business may be transacted which might have been transacted at the meeting as
originally notified.
Section 7. Vote Necessary to Take Action. When a quorum is present at any
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meeting, a vote of the holders of a majority of the stock, present at the
meeting in person or represented by proxy and having voting power, shall decide
any question
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brought before such meeting unless the question is one on which by statute or
the charter documents or these By-laws a different vote is required, in which
case such express provision will govern the decision of such question.
Section 8. Vote by Proxy. Stockholders of record when entitled to vote may vote
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at any meeting either in person or by written proxy filed with the Secretary
before voted. Proxies to be valid must be dated not more than eleven months
before the meeting named therein and executed in writing by the stockholder or
his attorney-in-fact. No such proxy shall be valid after the final adjournment
of such meeting.
Section 9. Action by Consent. Any action required or permitted to be taken at
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any meeting of the stockholders may be taken without a meeting and without
notice or waiver thereof if a consent in writing, which may be contained in a
single document or may be contained in more than one document so long as the
documents in the aggregate contain the required signatures, setting forth the
action so taken, is signed by all the stockholders entitled to vote with respect
to the subject matter thereof, and is filed with the Secretary of the
corporation as part of the corporate records. Such written consent shall have
the same effect as a unanimous vote of the stockholders and may be stated as
such in any certificate or document prepared or certified by any officer of the
corporation for any purposes.
ARTICLE IV
Directors
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Section 1. Constitution and Election of the Board. The number of directors, none
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of whom need be a stockholder, which shall constitute the whole Board shall be
such number, not less than three nor more than twenty-five, as shall be fixed
from time to time by the Board of Directors. At each annual meeting the
stockholders shall elect the number of directors as fixed by the Board of
Directors and such directors shall hold office until the next annual meeting,
and until their successors are elected and qualify.
Section 2. Vacancies. Whenever any vacancy shall occur in the Board of
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Directors, by reason of death, resignation or increase in the number of
directors or otherwise, it may be filled by a majority of the remaining
directors, though less than a quorum, for the balance of the term.
Section 3. Resignation; Removal. Any director may resign at any time. The Board
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of Directors may, by majority vote of all directors then in office, remove a
director for cause. The stockholders may, by majority vote, remove any director
or directors, with or without cause.
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Section 4. Powers and Duties of Directors. The Board of Directors shall have
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general charge and supervision of all the business and affairs of the
corporation and shall have and exercise all such powers possessed by the
corporation and do all such lawful acts and things on behalf of the corporation
except those which are by statute, the charter documents or these By-laws,
directed or required to be exercised or done by the stockholders.
Section 5. Regular Meetings. Regular meetings of the Board of Directors may be
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held at such times and at such places as the Board may from time to time
determine and if so determined no notice thereof need be given.
Section 6. Special Meetings. Special meetings of the Board of Directors shall be
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held at any time or place whenever called by the Secretary upon request of the
Chairman or of two directors at the time in office.
Section 7. Notice of Special Meetings. The Secretary shall give notice of each
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special meeting by mailing the same at least two days before the meeting or by
telephoning or telegraphing the same at least one day before the meeting to each
Director.
Any such special meeting of the Board of Directors may be held without such
notice providing all of the directors are present or those not present have
waived notice thereof.
Such special meetings shall be held at the time and place specified in the
notice and business transacted thereat shall be confined to the specific purpose
or purposes stated in the notice of the meeting and matters reasonably incident
thereto unless all directors are present and vote in favor of the action taken,
or, if not present, sign a written Consent to the action taken.
The attendance of a Director at a meeting shall constitute a waiver of notice of
such meeting, except a Director who attends a meeting for the express purpose of
objecting to the transaction of any business because the meeting is not lawfully
called for or convened.
Section 8. Quorum. At any meetings of the Board of Directors a majority of the
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directors shall be necessary to constitute a quorum for the transaction of
business, but a lesser number may adjourn any meeting from time to time without
notice, other than announcement at the meeting, until a quorum shall be present;
and such quorum shall then be able to vote on all matters that could have been
voted on at the original meeting.
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Section 9. Votes. Each director shall have one vote on all matters to be
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considered by the Board of Directors, and the vote of a majority of the
directors present at any properly constituted meeting shall be necessary to
adopt proposals except as provided by statute, the charter documents, or these
By-laws.
Section 10. Removal of Officers. The Board of Directors may, by a vote of the
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majority of directors present in person at any meeting thereof called for the
purpose, or by action by consent as hereinafter provided, remove from office any
officer or agent, whether elected or appointed by the Board of Directors or not,
whenever in its judgment the best interests of the corporation will be served
thereby, but such removal shall be without prejudice to the contract rights, if
any, of the person so removed.
Section 11. Action by Consent. Any action required or permitted to be taken at a
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meeting of the Directors of this corporation may be taken without a meeting and
without notice or waiver thereof if a consent in writing, which may be contained
in a single document or may be contained in more than one document so long as
the documents in the aggregate contain the required signatures, setting forth
the action taken or to be taken, shall be signed by all of the Directors' at any
time before or after the intended effective date of such action. Such consent
shall be filed with the minutes of Directors meetings and shall have the same
effect as a unanimous vote of the Directors and may be stated as such in any
document required or permitted to be filed with the Secretary of State and in
any certificate or document prepared or certified by any officer of the
corporation for any purposes.
Section 12. Director Assent. A Director of the corporation who is present at a
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meeting of the Board of Directors at which action on any corporate matter is
taken shall be presumed to have assented to the action taken unless his dissent
shall be entered in the minutes of the meeting or unless he shall file his
written dissent to such action with the person acting as the secretary of the
meeting before the adjournment thereof or shall forward such dissent by
registered mail to the Secretary of the corporation immediately after the
adjournment of the meeting. Such right to dissent shall not apply to a Director
who voted in favor of such action.
ARTICLE V
Committees
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Section 1. There shall be an Executive Committee consisting of the Chairman and
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not less than three, nor more than seven
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other directors, to be appointed annually by the Board of Directors who shall
appoint one of the members of such committee as Chairman.
The Executive Committee shall meet at the call of its Chairman or of any member
thereof and shall have authority to exercise, so far as may be permitted by law,
all the powers of the Board of Directors in the management of the business,
property and affairs of the corporation during the intervals between the
meetings of the Board of Directors. A majority of the members of such committee
shall constitute a quorum. The Executive Committee or a quorum thereof may act
from time to time on the basis of written approval of proposals without formal
meeting.
Section 2. There shall be a Finance Committee consisting of the Chairman and not
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less than three, nor more than seven other directors, to be appointed annually
by the Board of Directors who shall appoint one of the members of such committee
as Chairman.
The Finance Committee shall have authority to direct and control the investment
of funds and the purchase and sale of securities by the corporation. A majority
of the members of such committee shall constitute a quorum. The Finance
Committee or a quorum thereof may act from time to time on the basis of written
approval of proposals without formal meeting. Regular meetings of the committee
shall be held quarterly at dates set by vote of the committee. Special meetings
may be called at any time at the request of any member.
Section 3. There shall be an Audit Committee consisting of not less than three,
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nor more than seven directors, to be appointed annually by the Board of
Directors who shall appoint one of the members of such committee as Chairman.
The Committee shall review the accounting principles and practices employed by
the corporation, and, to the extent it deems appropriate, of its subsidiaries.
It shall have authority or order interim and surprise audits and to perform such
other duties as may from time to time be assigned to it by the Board.
The Committee shall meet with the corporation's independent public accountants
to review their report on their examination of the corporation's accounts, their
comments on the internal accounting controls and audit procedures of the
corporation, and the action taken by management with regard to such comments.
The committee shall also, to the extent it deems appropriate, review the
independent and internal audits and the accounting procedures and controls of
the corporation's subsidiaries. The committee shall report to
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the Board of Directors the results of its review and such recommendations as it
may deem appropriate.
Meetings may be held at the call of the Chairman, and may be initiated by any
member of the committee or by the independent public accountants or an
appropriate officer of the corporation, to deal with additional matters as they
may arise.
The committee shall recommend annually to the Board of Directors the appointment
of the corporation's independent public accountants, which appointment shall be
submitted to the stockholders for ratification.
The committee shall have authority to confer with the appropriate officers of
the corporation, or its subsidiaries, regarding the accounting principles and
practices employed by the corporation and its subsidiaries. Any reports issued
by the independent public accountants of the corporation, or by the corporation,
or any of its subsidiaries, shall, at its request, be made available to the
committee. The committee may request the attendance of appropriate officers of
the corporation, or its subsidiaries, at its meetings.
No officer of the corporation, or any of its affiliates, may serve on the Audit
Committee.
A majority of the members of such committee shall constitute a quorum.
Section 4. The Board of Directors may appoint other committees which shall have
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such powers and perform such duties as from time to time may be prescribed by
the Board.
Section 5. The Board shall have the power to fill vacancies in, to change the
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membership of, or to dissolve any committees, and to appoint alternate members
of any committee, but in no event may an officer of the Company or any of its
affiliates serve as a member or as an alternate member of the Audit Committee or
of any committee which has powers or duties with respect to compensation of the
Company's officers. Directors appointed as alternate members of a committee
shall act in the absence or disability of members of that committee with all of
the powers of such absent or disabled members and shall serve on such committee
in the order established by resolution adopted by a majority of the Board of
Directors. Action taken by any committee shall be reported at the meeting of the
Board next succeeding such action, except that, when such meeting of the Board
is held within two days after such action, such report, if not made at the first
meeting, shall be made to the Board at its second meeting following such
committee action.
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ARTICLE VI
Officers
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Section 1. Elected Officers. The elected officers of the corporation shall be a
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Chairman, a President, one or more Vice Presidents, a Treasurer and a Secretary.
The Board of Directors may also elect one or more Vice Chairmen and may
designate Vice Presidents as Executive or Senior Vice Presidents and may elect
from time to time, such other officers as it considers necessary, each of whom
shall hold office for such period, have such authority, and perform such duties
as the Board may from time to time determine. The aforementioned officers of the
corporation shall be elected by the Board of Directors at the first meeting of
the Board following the stockholders annual meeting, or as soon thereafter as is
conveniently possible, to hold office for one year, or until their respective
successors are duly elected and qualify. Any elected officer may be removed,
with or without cause, at any time by the Board. Any vacancy may be filled for
the unexpired portion of the term by the Board of Directors. The Board may elect
new officers, officers to replace any officer who has retired, resigned, died,
become disabled or has been removed from office. Two or more offices may be held
by the same person. The Chairman shall be chosen from among the Directors.
Section 2. Appointed Officers. The Chairman or the President may appoint as
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officers of the corporation for an indeterminate term such assistant, associate
and other subordinate officers as he may deem proper, and shall specify the
authority of and the duties to be performed by such officers, and may remove
them at any time with or without cause.
Section 3. Resignations. Any officer may resign his office at any time by
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delivering his resignation in writing to the corporation, and the acceptance of
such resignation, unless required by the terms thereof, shall not be necessary
to make such resignation effective.
Section 4. The Chairman. The Chairman, who shall be the Chief Executive Officer
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of the corporation, shall, when present, preside at all meetings of the
stockholders and the Board of Directors. He shall perform such other duties and
have such other powers as the Board of Directors may from time to time
designate.
Section 5. The Vice Chairmen. The Vice Chairmen, if any, shall perform such
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duties and have such powers as the Chairman or the Board of Directors may from
time to time designate.
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Section 6. The President. The President shall be the Chief Operating Officer of
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the corporation. He shall perform such other duties and have such other powers
as the Board of Directors or the Chairman may from time to time designate, and
in the absence of the Chairman, shall exercise the functions and duties of the
Chairman.
Section 7. Vice Presidents. The Vice Presidents, some of whom may be designated
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Senior Vice Presidents or Executive Vice Presidents, shall perform such duties
and have such powers as the Board of Directors or the Chairman may from time to
time prescribe. The Vice Presidents, in the order of priority designated by the
Chairman or the Board of Directors, shall exercise the functions of the
President in his absence.
Section 8. The Treasurer. The Treasurer shall be the principal fiscal officer of
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the corporation. He shall have the care and custody of funds and securities of
the corporation and shall have and exercise under the supervision of the Board
of Directors all the powers and duties commonly incident to his office. He may
be required by the Board of Directors to give bond for the faithful discharge of
his duties in such sum and with such sureties as may be satisfactory to the
Board. He shall deposit or cause to be deposited all the funds of the
corporation in such bank or banks trust company or companies, or with such
other firm or firms doing a banking business as the Board of Directors may from
time to time designate. He shall keep or cause to be kept accurate books of
account of all corporation transactions, which books shall be the property of
the corporation and together with all other of its property in his possession
shall be subject at all times to the inspection and control of the Board of
Directors. The Treasurer shall perform such other duties and have such other
powers as the Board of Directors or the Chairman may from time to time
designate.
Section 9. The Secretary. The Secretary, who shall be the registered agent,
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shall be and continue to be a resident of the State of New Hampshire and shall
keep his residence or office therein, which shall be the registered office of
the corporation. The Secretary shall: (a) keep the minutes of the proceedings of
the stockholders and of the Board of Directors in one or more books provided for
that purpose; (b) see that all notices are duly given in accordance with the
provisions of these By-laws or as required by law; (c) be custodian of the
corporate minutes and of the seal of the corporation and see that the seal of
the corporation is affixed to all documents, the execution of which on behalf of
the corporation under its seal is duly authorized; (d) sign certificates for
shares of the corporation, the issuance of which shall have been authorized by
resolution of the Board of Directors; and (e) in general perform all duties
incident
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to the office of Secretary and such other duties as from time to time may be
assigned to him by the Chairman or by the Board of Directors. He shall have
custody of the stock registers and transfer books of the corporation.
In the absence of the Secretary from any meeting, a Secretary pro tempore may be
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appointed.
Section 10. Execution of Documents. All written contracts and all conveyances of
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real and personal property made by the corporation shall be executed by the
Chairman, Vice Chairman, President or any Vice President, unless the Board of
Directors shall by vote specifically authorize the execution of a specific
contract or conveyance by a specific officer of the corporation.
Any person holding more than one office in the corporation shall sign any such
contract or conveyance in only one capacity.
All checks, drafts, bills of exchange, notes or other obligations or orders for
payment of money shall be executed by such officer or officers of the
corporation as the Board of Directors shall designate.
ARTICLE VII
Certificate of Stock
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Every stockholder shall be entitled to a certificate or certificates of the
capital stock of the corporation, which shall be numbered and registered as
issued. Such certificate or certificates shall exhibit the holder's name and the
number of shares, and shall be signed by the President or a Vice President and
attested by the Secretary or an Assistant Secretary, and bear the corporate
seal.
ARTICLE VIII
Transfer of Stock
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Subject to the provisions of the charter documents as from time to time amended,
shares of stock may be transferred in the manner provided by law; and the
corporation by its officers or agents appointed for that purpose shall record
upon the books of the corporation a transfer of such shares upon surrender of
the certificate therefor accompanied either by a written assignment thereof
or by a written power of attorney to sell, assign, and transfer the same, or the
shares represented thereby, signed by the record holder of such certificate, or
by his legal representative. No transfer shall affect the right of the
corporation to treat
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such holder as the owner thereof until such transfer shall have been recorded
upon the books of the corporation or until a new certificate shall have been so
transferred. The corporation shall not be bound to take notice of or recognize
any trust, expressed, implied or constructive, or any charge or equity affecting
any of the shares of its capital stock or to ascertain or inquire whether any
sale or transfer of any such shares by any stockholder or his personal
representative is authorized by such trust, charge or equity, or to recognize
any persons as having an interest therein except the person or persons in whom
the legal title to such share or shares is vested for the time being.
ARTICLE IX
Transfer Books and Record Dates
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For the purpose of determining stockholders entitled to notice or to vote at any
meeting of stockholders or any adjournment thereof, or stockholders entitled to
receive payment of any dividend or in order to make a determination of
stockholders for any other proper purpose, the Board of Directors of the
corporation may provide that the stock transfer books shall be closed for a
stated period not to exceed fifty (50) days. If the stock transfer books shall
be closed for the purpose of determining stockholders entitled to notice of or
to vote at a meeting of stockholders such books shall be closed for at least
ten (10) days immediately preceding such meeting. In lieu of closing the stock
transfer books, the Board of Directors may fix in advance a date as the record
date for any such determination of stockholders, such date in any case to be not
more than fifty days and, in case of a meeting of stockholders, not less than
ten days prior to the date on which the particular action requiring such
determination of stockholders is to be taken. If the stock transfer books are
not closed and no record date is fixed for the determination of stockholders
entitled to notice of or to vote at a meeting of stockholders, or stockholders
entitled to receive payment of a dividend, the date on which notice of the
meeting is mailed or the date on which the resolution of the Board of Directors
declaring such dividend is adopted, as the case may be, shall be the record date
for such determination of stockholders. When a determination of stockholders
entitled to vote at any meeting of stockholders has been made as provided in
this section, such determination shall apply to any adjournment thereof.
ARTICLE X
Fiscal Year
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Except as from time to time otherwise provided by the Board of Directors, the
fiscal year of the corporation shall begin
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on the first day of January and end on the last day of December in each year.
ARTICLE XI
Indemnification of Directors and Officers
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The corporation shall indemnify and reimburse any person who is or was a
Director, officer, employee or agent of the corporation, or is or was serving at
the request of the corporation as a Director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise to
the fullest extent authorized by RSA 293-A:5, as amended. This power shall be
exercised in accordance with RSA 293-A:5,IV(a) and (b), as amended.
ARTICLE XII
Amendments
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Except as otherwise provided by law, these By-laws may be amended, added to,
altered, or repealed in whole or in part by the Board of Directors at any annual
or regular meeting or at any special meeting thereof called therefor. Any By-
laws approved by the Board of Directors under this Article may be altered,
amended or repealed by the stockholders.
Certified to be a true Copy.
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Secretary
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Date
/cc
<PAGE>
Exhibit 3
OPINION OF COUNSEL
AS TO
SECURITIES BEING REGISTERED
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
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One Granite Place, P.O. Box 51.5, Concord, NH 03302. (603) 226-5000
May 18, 1994
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 Pre-Effective Amendment No. 1 to its
Registration Statement on Form 5-6 under the Securities Act of 1933 (the "Act")
of interests in Chubb Separate Account C (the "Separate Account") under its
variable life insurance policies (the "Policies"). This opinion covers both the
individual flexible premium variable life insurance policy and the survivorship
flexible premium variable life insurance policy.
I am familiar with the terms of the Policies and the Pre-Effective Amendment No.
1 to the Registration Statement and the Exhibits thereto. 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 Insurance Code 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 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.
Chubb LifeAmerica Is the servicemark of
Chubb Life Insurance Company of America - The Colonial Life Insurance Company of
America
Sovereign Life Insurance Company of California
<PAGE>
Chubb Life Insurance Company of America
May 18, 1994
Page Two
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 Pre-
Effective Amendment No. 1 to the Registration Statement of the Separate Account
filed under the Act.
Sincerely,
/s/ Shari J. Lease
Shari J. Lease
Assistant Vice President
and Associate Counsel
<PAGE>
Exhibit 6
ACTUARIAL OPINIONS AND CONSENTS OF
MICHAEL J. LEBOEUF, FSA, MAAA
<PAGE>
[LOGO OF CHUBB LIFE AMERICA APPEARS HERE]
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One Granite Place, P.O. Box 515, Concord, NH 03302-0515. (603) 226-5000
February 20, 1996
Chubb Life Insurance Company of America
P.O. Box 515
Concord, New Hampshire 03301
Gentlemen:
This opinion is furnished in connection with the filing of post-effective
amendment no. 2 to 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 ("Individual Policy") and the
survivorship flexible premium variable life insurance policy ("Survivorship
Policy").
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.
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.
Chubb LifeAmerica is the servicemark of
Chubb Life Insurance Company of America - The Colonial Life Insurance Company Of
America
Chubb Sovereign Life Insurance Company
<PAGE>
February 20, 1996
Page Two
The illustrations in Appendix A have not been designed so as to make the
relationship 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
nonsmokers 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 relationship 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, FSA, MAAA
Assistant Vice President
and Product Actuary
MJL/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
Chubb Life Insurance Company of America ("Chubb"), on behalf
of Separate Account C, makes the following representations:
1. Section 6e-3(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 an 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 on 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 Separate
Account C and policy 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 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-l to finance distribution expenses.
/s/ Richard Dielensnyder
Richard Dielensnyder, FSA, MAAA
Assistant Vice President and
Product Actuary
<PAGE>
Exhibit 10
REINSURANCE AGREEMENT
between
CHUBB LIFE INSURANCE COMPANY OF AMERICA
of Concord, New Hampshire
hereinafter referred to as the "Ceding Company," and
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TABLE OF CONTENTS
-----------------
<TABLE>
<CAPTION>
ARTICLE TITLE PAGE
- ------- ----- ----
<S> <C> <C>
1 Effective Date 1.0
2 Automatic Reinsurance Coverage 2.0
3 Facultative Reinsurance Coverage 3.0
4 Procedure 4.0
5 Liability 5.0
6 Plans of Reinsurance 6.0
7 Premiums 7.0
8 Reinsurance Conditions 8.0
9 Premium Tax Reimbursement and DAC Tax 9.0
10 Adjustments 10.0
11 Reinstatement 11.0
12 Payments 12.0
13 Recapture 13.0
14 Administrative Oversights 14.0
15 Claims 15.0
16 Misstatement of Age or Sex 16.0
17 Insolvency 17.0
18 Inspection of Records 18.0
19 Arbitration 19.0
20 Parties to the Agreement 20.0
21 Duration of Agreement 21.0
22 Experience Refund 22.0
23 Reserves 23.0
24 Entire Agreement 24.0
25 Reports 25.0
26 Execution of the Agreement 26.0
</TABLE>
<PAGE>
ARTICLE 1: EFFECTIVE DATE
- --------------------------
This Treaty is an Agreement, effective September 7, 1993, by and between the
Ceding Company and the Reinsurer. In consideration of the mutual promises
contained herein the parties hereto agree to act in accordance with the
provisions of this Agreement.
<PAGE>
ARTICLE 2: AUTOMATIC REINSURANCE COVERAGE
- ------------------------------------------
1. The Ceding Company agrees to submit for reinsurance with the Reinsurer and
the Reinsurer agrees to accept for reinsurance 25% of the excess over the
Ceding Company's limits of retention, as shown in Exhibit A, attached hereto
and made a part hereof, of any and all standard and substandard individually
underwritten ordinary life insurance, as set forth in Exhibit B, attached
hereto and made a part hereof, which is written by the Ceding Company on any
resident of the United States, in accordance with the Ceding Company's
normal individual ordinary underwriting rules and practices. Minimum
cessions will be $10,000, and maximum total amounts on one life will be
equal to 25% of the amounts as set forth in Exhibit A.
For the purposes of this Agreement and in accordance with the Ceding
Company's ordinary underwriting rules, "resident" shall be defined as a
person whose primary domicile is the United States for at least 9 months in
a 12 consecutive month period, and who is either a U.S. citizen or has been
lawfully admitted for permanent residence in the United States. The phrase
"lawfully admitted for permanent residence" means the status of having been
lawfully accorded the privilege of residing permanently in the United States
and having been issued an alien registration receipt card by the United
States Immigration and Naturalization Service of the United States
Department of Justice.
Should the Ceding Company desire to change its issue limits or underwriting
guidelines, such changes shall be subject to approval by the Reinsurer.
Should the Ceding Company elect to participate in another arrangement or
other arrangements to secure additional automatic binding capacity, the
Reinsurer shall be notified thirty (30) days in advance of such action and
reserves the right to modify the binding limits currently set forth in this
Agreement.
It is further provided and agreed that life insurance amounts submitted in
accordance with this Article shall not include those constituting a "Jumbo
Risk". A "Jumbo Risk" for the purpose of this Agreement is defined as one
where the papers of the Ceding Company indicate that the proposed insured's
total life insurance inforce and applied for in all companies exceeds the
amounts shown in Exhibit A.
2. Automatic reinsurance coverage shall not apply to those situations where the
policy has been submitted on a facultative basis.
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3. Automatic reinsurance under this Agreement will include, if mutually agreed
upon in writing between the parties and referenced in Exhibit B or elsewhere
in this document, any supplementary benefits.
4. The Ceding Company shall at any time have the right to modify its retention
limits affecting reinsurance by advance notice in writing mailed to the
Reinsurer. The automatic binding limits specified in Exhibit A and referred
to in paragraph 1 of this Article shall be amended in writing by the Ceding
Company and the Reinsurer.
5. Automatic reinsurance shall not cover special programs, experimental or
limited retention programs, or replacement and conversion situations of the
Ceding Company unless prior approval has been received from the Reinsurer.
For the purposes of this Agreement, these situations are not intended to
mean contractual conversions or exchanges or continuations of the original
policy for reinsurance purposes.
2.1
<PAGE>
ARTICLE 3: FACULTATIVE REINSURANCE COVERAGE
- --------------------------------------------
1. Whenever the Ceding Company desires reinsurance on a standard or substandard
risk not covered by the automatic provisions of this Agreement as specified
in Article 2, or on any application on which the Ceding Company wishes the
advice of the Reinsurer, it must submit, and the Reinsurer agrees to
consider, such reinsurance on a facultative basis.
2. Facultative reinsurance under this Agreement may include supplementary
benefits as mutually agreed upon in writing by the Ceding Company and the
Reinsurer.
3. Any and all offers made by the Reinsurer to accept a risk as submitted or to
accept a risk under terms and conditions other than as submitted shall,
unless otherwise terminated by the Reinsurer, terminate automatically on the
earliest of:
a. The date the Reinsurer receives notice from the Ceding Company of its
withdrawal of its application, or
b. Ninety (90) days from the date the Reinsurer communicates its offer to
the Ceding Company.
The Reinsurer's offer may remain open beyond the ninety day period provided
the Ceding Company submits a written request to the Reinsurer for an
extension of the offer and the Reinsurer approves such request. If an
extension is granted, the Reinsurer's offer shall terminate automatically on
the date the extension expires.
3.0
<PAGE>
ARTICLE 4: PROCEDURE
- ---------------------
1. Automatic Reinsurance
The plans covered under this Agreement shall be Self-Administered. Each
month, the Ceding Company shall submit to the Reinsurer a statement
containing the following information for each policy for which premium
payments or adjustments are due, along with the applicable premium payment
or adjustment:
1. Policy number
2. Issue Date
3. Insured's Name
4. Age and date of birth
5. Sex
6. Underwriting classification, smoking code, and table rating
7. Amount of risk for following year, less retention
8. Premiums due the Reinsurer
9. Policy Exhibit
10. Treaty code
11. Life or health indicator
12. Coinsurance or YRT indicator
13. Reinsurer's cession number
14. Valuation code
15. Premium duration
16. Automatic or facultative indicator
17. State code
18. Reinsurance premium paid-to date
19. Face amount of policy
20. Original amount of reinsurance
21. Commissions due Chubb
2. Facultative Reinsurance
When the Ceding Company desires to apply for facultative reinsurance, the
Ceding Company shall send to the Reinsurer copies of the original
application, medical examiners' reports, inspection reports, and all other
information bearing on the insurability of the risk. Upon receipt of such
application, the Reinsurer shall examine the papers and promptly notify the
Ceding Company of its decision to either make an offer or reject the risk as
submitted, or advise the Ceding Company of additional evidence necessary to
underwrite the risk.
When a policy has been issued and paid for on which reinsurance has been
obtained from the Reinsurer, the Ceding Company shall promptly pay
reinsurance premiums on such policy on the next monthly statement. Payment
of said premium shall constitute acceptance of the Reinsurer's
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<PAGE>
facultative offer.
If the reinsurance application on which the Reinsurer has made an offer is
not to be placed with the Reinsurer because the original policy has not been
paid for or because of some other reason, such offer shall expire in
accordance with the terms and conditions specified under Article 3,
paragraph 3.
The reporting of facultative business shall be made in the same accord as
automatic reinsurance.
4.1
<PAGE>
ARTICLE 5: LIABILITY
- ---------------------
1. The liability of the Reinsurer on any reinsurance under this
Agreement shall commence simultaneously with the liability of the
Ceding Company, except that no liability shall attach to the Reinsurer
hereunder with respect to facultative reinsurance prior to acceptance
during the lifetime of the insured by the Ceding Company of the
Reinsurer's offer. In no event shall the liability of the Reinsurer
commence prior to the liability of the Ceding Company. The Reinsurer's
liability thereunder shall continue as long as the Ceding Company is
liable under the policy, subject to all provisions contained in this
agreement, and shall cease when the liability of the Ceding Company
ceases.
2. Whenever the Ceding Company becomes liable for a loss under the terms
of a Conditional Receipt or Temporary Insurance Receipt, the Reinsurer
shall be liable to the Ceding Company for the amount over the Ceding
Company's standard retention as specified in the retention schedule in
Exhibit A, but not in excess of the automatic reinsurance limits
hereunder, and only if the policy would have qualified for automatic
reinsurance hereunder. In order for the Reinsurer to be liable in
accordance with the preceding qualifications on any Conditional Receipt
or Temporary Insurance Receipt, the Ceding Company must have submitted
to the Reinsurer a copy of the application and receipt it intends to
use with regard to risks reinsured hereunder and must have received
written acknowledgment from the Reinsurer that it intends to be bound
on such receipt as herein stated. The Ceding Company shall notify the
Reinsurer of proposed changes to its Conditional Receipt or Temporary
Insurance Receipt or in its practices in issuing Conditional Receipts
or Temporary Insurance Receipts. The Reinsurer shall not be liable for
such revised Conditional Receipt, Temporary Insurance Receipt or
practices unless the Ceding Company has received written acknowledgment
from the Reinsurer that it intends to be bound on such revision.
3. The Reinsurer shall not be liable for a loss incurred by the Ceding
Company under the terms of a Conditional Receipt or Temporary Insurance
Receipt where the Ceding Company has submitted the policy facultatively
to any reinsurer.
5.0
<PAGE>
ARTICLE 6: PLANS OF REINSURANCE
- --------------------------------
1. Life Reinsurance
Life Reinsurance under this Agreement shall be on the Yearly Renewable Term
plan for the amount at risk on the proportion of the original policy
reinsured in the Reinsurer. For the purpose of this Agreement the reinsured
net amount at risk will be calculated as (a) the number of $1000 units of
reinsurance, less (b) the reserve per unit, if any, times (c) the number of
units reinsured.
For purposes of the preceding paragraph, reserve will mean accumulated fund
value for interest sensitive or universal life type products, and will mean
statutory reserves (excluding deficiency reserves) for all other products.
2. Supplemental Benefits
All Supplemental Benefits reinsurance shall be on the Coinsurance plan.
3. Any Supplemental Benefits reinsured hereunder shall be independent of the
life reinsurance amount at risk.
6.0
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ARTICLE 7: PREMIUMS
- --------------------
1. Premiums for Life Reinsurance
The annual premiums for standard and substandard life reinsurance shall be
computed on the basis of the amount at risk at the rates shown in Exhibit C
attached hereto and made a part hereof. These rates are guaranteed for one
year. The Reinsurer guarantees that premium rates shall not exceed the rate
determined using the applicable 1980 CSO table at the maximum statutory
valuation rate approved in the Reinsurer's state of domicile.
2. Flat Extra Premiums
For reinsurance of substandard risks for which a flat extra premium is
charged, the Ceding Company shall pay to the Reinsurer the sum of:
a. The premiums for the amount at risk as determined in item 1. above, and
b. The flat extra premium collected by the Ceding Company on the portion
of the face amount reinsured in the Reinsurer, less allowances as
described in Exhibit C.
3. Supplemental Benefits
Premiums for reinsurance of Supplemental Benefits shall be paid during the
period that such coverage is inforce at the annual rates as are charged by
the Ceding Company under the policy or policies on which reinsurance in the
Reinsurer is based, less allowances as described in Exhibit D. If the Ceding
Company decreases the Supplemental Benefits rates subsequent to the
effective date of this Agreement, the Reinsurer reserves the right to review
the allowances.
7.0
<PAGE>
ARTICLE 8: REINSURANCE CONDITIONS
- ----------------------------------
1. Upon request, the Ceding Company shall furnish the Reinsurer with any and
all specimen copies of its applications, rate books, underwriting
requirements, policy and rider forms and any tables of rates and values
which may be required for the proper administration of the business
reinsured under this Agreement.
2. Each reinsurance cession shall be subject to all applicable general
conditions, limitations, exceptions or restrictions contained in the
respective policies of the Ceding Company, except, however, that the
reinsurance shall provide no loan or cash surrender values.
3. The Ceding Company shall bear the expense of all medical examinations,
inspection fees and other charges incurred in connection with the policy,
including but not limited to issue, reinstatement, or reentry.
8.0
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ARTICLE 9: PREMIUM TAX REIMBURSEMENT AND DAC TAX
- -------------------------------------------------
1. Premium Taxes
The Reinsurer is not required to reimburse the Ceding Company for premium
taxes the latter may be required to pay with respect to that part of the
premiums received under the Ceding Company's policies which is remitted to
the Reinsurer as reinsurance premiums.
2. DAC Tax
The Ceding Company and the Reinsurer hereby enter into an election under
Treasury Regulations Section 1.848-2(g)(8) whereby:
a. For each taxable year under this Agreement, the party with net positive
consideration, as defined in the regulations promulgated under Treasury
Code Section 848, will capitalize specified policy acquisition expenses
with respect to this Agreement without regard to the general deductions
limitation of Section 848(c)(1);
b. The Ceding Company and the Reinsurer agree to exchange information
pertaining to the amount of net consideration under this Agreement each
year to ensure consistency or as otherwise required by the Internal
Revenue Service;
c. The Ceding Company will submit a schedule to the Reinsurer by May 1 of
each year of its calculation of the net consideration for the preceding
calendar year. This schedule of calculations will be accompanied by a
statement signed by an officer of the Ceding Company stating that the
Ceding Company will report such net consideration in its tax return for
the preceding calendar year;
d. The Reinsurer may contest such calculation by providing an alternative
calculation to the Ceding Company in writing by June 1st of the same
year. If the Reinsurer does not so notify the Ceding Company, the
Reinsurer will report the net consideration as determined by the Ceding
Company in the Reinsurer's tax return for the previous calendar year;
e. If the Reinsurer contests the Ceding Company's calculation of the net
consideration, the parties will act in good faith to reach an agreement
as to the correct amount by July 1st of the same year. If the
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<PAGE>
Ceding company and the Reinsurer reach agreement on an amount of net
consideration, each party shall report such amount in their respective
tax returns for the previous calendar year.
9.1
<PAGE>
ARTICLE 10: ADJUSTMENTS
- ------------------------
1. Changes
If any change is made in the plan of the original policy reinsured in the
Reinsurer, including but not limited to any change in status caused by the
application of a nonforfeiture provision, a corresponding change shall be
made in the reinsurance. The Ceding Company shall promptly notify the
Reinsurer of any such change with the next monthly statement that is
completed. Increases in the face amount of the original policy reinsured
hereunder and changes in the underwriting classification of substandard
policies for facultative policies shall be subject to prior approval of the
Reinsurer.
2. Reductions and Terminations
If all or any part of any insurance coverage under any policy upon which
reinsurance is based shall be reduced or terminated, the amount of
reinsurance carried by the Reinsurer with respect to that coverage, shall
be:
a. in the case of a policy terminating, the reinsurance related to that
policy shall be terminated.
b. in the case of a policy reduction, the Ceding Company will maintain the
retention it possessed prior to the reduction and reduce or terminate
the reinsurance depending on the amount of the policy remaining after
the reduction.
3. Conversions or Continuations
Conversions or continuations will be reinsured by the Reinsurer only if the
original policy was reinsured by the Reinsurer. The amount of reinsurance
will not exceed the amount of the reinsurance on the original policy with
the Reinsurer immediately prior to the conversion or continuation. Premiums
and allowances will be determined at the rates covering the new plan at
point in scale based on the original policy that is being converted or
continued.
A continuation is defined as a policy not meeting all of the following
conditions:
1) complete new underwriting
2) new suicide clause and incontestable period
3) full first year commissions paid.
10.0
<PAGE>
ARTICLE 11: REINSTATEMENT
- --------------------------
1. If a policy reinsured automatically under the provisions of Article 2
hereunder lapses and is later approved for reinstatement by the Ceding
Company in accordance with its usual and ordinary underwriting standards,
reinsurance for the amount reinsured with the Reinsurer at the time of lapse
shall be reinstated automatically. The notice of reinstatement shall appear
on the monthly statement. Reinsurance shall be effective as of the date of
reinstatement.
2. If a policy reinsured facultatively under the provisions of Article 3
lapses, reinstatement of the amount reinsured with the Reinsurer at the time
of the lapse shall require prior approval by the Reinsurer. Notice in
writing of such reinstatement shall be given promptly to the Reinsurer
together with copies of the reinstatement papers that are required. Such
reinsurance shall become effective as of the date of reinstatement.
3. In the event of a reinstatement in accordance with this Article, the Ceding
Company shall pay to the Reinsurer all reinsurance premiums and policy fees
in arrears from the reinstatement date. Thereafter, reinsurance premiums
shall be payable in accordance with Article 7 and 12.
11.0
<PAGE>
ARTICLE 12: PAYMENTS
- ---------------------
1. Reinsurance premiums shall be paid on an annual basis. Within thirty days
after the close of each calendar month, the Ceding Company shall forward to
the Reinsurer its statement of account along with its remittance for the new
amount due as shown therein. If the statement shows a balance due the Ceding
Company, the Reinsurer shall remit that amount to the Ceding Company within
30 days of receipt of the statement of account.
2. For the purposes of this Agreement, the due date for the Reinsurer's receipt
of the statement of account and premiums due is the thirty-first day
following the close of any calendar month. The payment of reinsurance
premiums in accordance with the provisions herein shall be a condition
precedent to the liability of the Reinsurer for reinsurance covered by this
Agreement. In the event that reinsurance premiums are not paid as of the
thirty-first day following the close of the calendar month in which they
fall due, the Reinsurer shall have the right to give the Ceding Company
thirty days notice of the Reinsurer's intention to terminate reinsurance on
those policies for which reinsurance premiums have not been paid. At the
expiration of this thirty-day period the reinsurance shall terminate
automatically. Whether or not the Reinsurer exercises its right to terminate
the reinsurance as specified in the preceding paragraph, all such
outstanding premiums shall be subject to an annual interest charge on the
unpaid balance from the due date as specified in this Article to the date of
payment, at a rate coincident with the current rate of interest charged by
the Reinsurer for delinquent premiums in connection with its individual life
insurance policies.
3. If reinsurance is terminated as provided in paragraph 2, and if all
reinsurance premiums in default and any additional charge due in accordance
with paragraph 2, including such premiums and charges which may become in
default during the thirty-day notice period are not paid before the
expiration of such period, the Reinsurer shall thereupon be relieved
automatically of future liability under all reinsurance on those policies
for which premiums and other charges remain unpaid. Reinsurance under
cessions for which premiums subsequently fall due will terminate
automatically if reinsurance premiums are not paid when due as provided in
paragraph 2 of this Article. The reinsurance so terminated may be reinstated
at any time within sixty days of the date of termination upon payment of all
reinsurance premiums and other charges in arrears; but in the event of such
reinstatement, the Reinsurer shall have no liability in connection with any
claims incurred between the date of
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termination and the date of reinstatement of the reinsurance.
4. The Ceding Company shall continue to be liable to the Reinsurer for all
unpaid reinsurance premiums earned by the Reinsurer during the time period
reinsurance coverage remains in effect under this Agreement. Such premiums
are subject to an annual interest charge as specified in paragraph 2 above.
12.1
<PAGE>
ARTICLE 13: RECAPTURE
- ----------------------
1. The limits of retention of the Ceding Company are shown in Exhibit A,
attached hereto and made a part hereof. The Ceding Company shall at any time
have the right to increase its retention limits affecting new reinsurance by
advance notice in writing exiled to the Reinsurer. If the Ceding Company
reduces its retention limits, such reduction shall not take effect for
reinsurance purposes until written approval has been received from the
Reinsurer.
2. If the Ceding Company increases its limits of retention as specified in
Exhibit A, a corresponding reduction may be made at the option of the Ceding
Company in the reinsurance inforce under this Agreement on all lives on which
the Ceding Company has maintained its maximum limit of retention for age and
mortality rating in effect at the time of issue. A reduction shall not be
made in the reinsurance of any policy until such reinsurance has been inforce
hereunder at least ten (10) full years.
3. If such reduction in reinsurance is elected and written notice thereof is
given to the Reinsurer within ninety days from the effective date of such
increase in retention for new issues, then:
a. All policies or reinsurance issued hereunder and eligible for
recapture, as provided in this Article, shall be similarly reduced;
b. Such reinsurance shall be reduced by an amount in each case as will
increase the total insurance to be retained by the Ceding Company to
its maximum limit of retention for the age and mortality rating in
effect at the time the reinsurance was ceded to the Reinsurer;
c. If there is reinsurance in other companies on any such life, the
reduction of the reinsurance in the Reinsurer shall be that proportion
of the total indicated reduction which the reinsurance in the Reinsurer
bears to the total reinsurance on that life;
d. The reduction of reinsurance shall be effective upon the anniversary
date next following or the tenth (10th) policy anniversary for those
policies which have not been inforce at least ten (10) full years;
e. If, at the time of recapture, the reinsured is disabled and premiums
are being waived under a waiver of monthly deductions benefit, the life
reinsurance shall be considered eligible for recapture. However, the
waiver
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<PAGE>
of monthly deductions benefit reinsurance shall remain inforce until
such time as the policy is returned to a premium paying status, at
which time the waiver of monthly deductions benefit reinsurance shall
be eligible for recapture.
4. In the event the Ceding Company overlooks any reduction in the amount of
reinsurance which should have been made because of an increase in the Ceding
Company's limits of retention, the acceptance by the Reinsurer of
reinsurance premiums under such circumstances after the effective date of
the reduction shall not constitute or determine a liability on the part of
the Reinsurer for such reinsurance. The Reinsurer shall be liable only for a
refund of premiums so received without interest.
13.1
<PAGE>
ARTICLE 14: ADMINISTRATIVE OVERSIGHTS
- --------------------------------------
1. Should either party to this Agreement fail to comply with any of the terms
of this Agreement, and if said failure can be shown to be unintentional and
a result of an administrative oversight or misunderstanding on the part of
either party, then this Agreement shall not be deemed abrogated thereby, but
both parties shall be restored to the position they would have occupied had
no such administrative oversight occurred.
2. If the Ceding Company does discover that it did not cede reinsurance on a
policy it should have reinsured automatically under this Agreement, the
Ceding Company is required to do an audit of its records sufficient to
determine if automatic reinsurance was unreported on any other policies.
14.0
<PAGE>
ARTICLE 15: CLAIMS
- -------------------
1. Notice of Claim.
Immediate notice of any claim submitted on a policy reinsured hereunder
shall be given to the Reinsurer after receipt of first information by the
Ceding Company. Copies of documents bearing on such claim and coverage shall
be furnished to the Reinsurer as requested. In addition, on any claim
occurring during the contestable period, the Ceding Company shall furnish
copies of the application and underwriting papers. Whenever the amount
reinsured by the Reinsurer exceeds the amount retained by the Ceding
Company, the Ceding Company shall consult with the Reinsurer prior to
conceding any liability or making any settlement with the claimant.
2. Settlement of Claims.
Except as otherwise hereinafter provided, the Reinsurer shall accept the
good faith decision of the Ceding Company in settling any claim. Upon
receipt of the proper proofs and, if requested by the Reinsurer, evidence of
the Ceding Company having settled with the claimant, the Reinsurer shall
make one lump sum payment of its net reinsurance liability regardless of the
method of settlement used by the Ceding Company under its policy or
policies. In settlement of reinsurance liability for waiver of monthly
deductions benefits, the Reinsurer shall pay the Ceding Company its
proportionate share of the gross premium waived annually.
3. Contested Claims.
The Ceding Company shall immediately notify the Reinsurer of its intention
to contest, compromise or litigate a claim involving the insurance. The
Reinsurer shall notify the Ceding Company of its decision to decline to be a
party to such contest within fifteen (15) days of the Reinsurer's receipt of
all documents requested by the Reinsurer in accordance with this Article. In
such case, the Reinsurer shall pay the full amount of the reinsurance due
the Ceding Company and shall not be liable for future costs of legal and/or
investigative expenses incurred subsequent to the date of the Reinsurer's
notice of declination.
When the Reinsurer agrees to participate in a contest, compromise or
litigation involving the insurance, the Ceding Company shall give prompt
notice of the commencement, or proposed commencement, of any legal
proceedings in connection therewith. Copies of all documents in connection
with a lawsuit or notice of intent
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<PAGE>
to file a lawsuit shall be furnished promptly to the Reinsurer. The Reinsurer
shall accept the Ceding Company's good faith decisions in litigation,
compromises, or contests.
The Reinsurer shall share in legal or investigative expenses related to such
proceedings in the same proportion as its reinsurance liability bears to the
Ceding Company's liability.
If the Ceding Company's contest, compromise or litigation results in a
reduction of its liability, the Reinsurer shall share in the reduction in the
proportion that the liability of the Reinsurer bore to the amount payable
under the terms of the policy on the date of death of the insured.
4. Claim Expense.
The Reinsurer shall pay its proportionate share of the following expenses
connected with the litigation or settlement of a claim, provided that such
expenses are reasonable:
a. Investigative expenses such as investigatory reports, attending
physician's statements, police reports;
b. Attorney's fees;
C. Penalties and interest imposed automatically by statute against the
Ceding Company and rising solely out of a judgement rendered against the
Ceding Company in a suit for policy benefits reinsured hereunder;
d. Interest paid to the claimant on death benefit proceeds in accordance
with the Ceding Company's practices. Reimbursement of interest in excess
of 9%, unless otherwise dictated by local legislation, shall require
approval by the Reinsurer.
The Reinsurer's share of such expenses shall be determined in accordance
with the same proportions described in paragraph 3 of this Article.
The following claim expenses shall not be considered items of "net
reinsurance liability", as referenced in paragraph 2 of this Article, and
such expenses shall be paid by the Ceding Company:
a. Routine administrative expenses, home office or elsewhere,
including salaries of employees of the Company.
15.1
<PAGE>
b. Expenses incurred in connection with any dispute or contest arising out
of conflict in claims of entitlement to policy proceeds or benefits
which the Ceding Company admits are payable.
5. Extra Contractual Damages.
The Reinsurer shall not be liable, nor shall any amounts be paid under this
Agreement or otherwise, for any extra-contractual damages, including but
not limited to consequential, compensatory, exemplary or punitive damages
awarded against the Ceding Company or the Ceding Company voluntarily pays in
settlement of a dispute or claim, where the damages actually awarded are the
direct or indirect result of any act, omission or course of conduct
undertaken by the Ceding Company, its agents or representatives in
connection with any aspect of the insurance reinsured under the Agreement.
The Reinsurer recognizes that special circumstances may arise under which
the Reinsurer, in equity, should participate to the extent permitted by law
in certain assessed damages. These circumstances are difficult to define in
advance but could include those situations in which the Reinsurer was an
active party in the act, omission or course of conduct which directly
results in the assessment of such damages. The extent of such participation
is dependent upon a good-faith assessment of the relative culpability in
each case; but all factors being equal, the division of any such assessment
would generally be in the proportion of the net liability accepted by each
party.
15.2
<PAGE>
ARTICLE 16: MISSTATEMENT OF AGE OR SEX
- ---------------------------------------
In the event of an increase or reduction in the amount of original insurance
under any policy reinsured hereunder because of an overstatement or
understatement of age or misstatement of sex established after the death of the
insured, the Ceding Company and the Reinsurer shall share in such increase or
reduction in proportion to their respective liabilities under such policy.
16.0
<PAGE>
ARTICLE 17: INSOLVENCY
- -----------------------
1. All reinsurance under this Agreement shall be payable by the Reinsurer
directly to the Ceding Company, its liquidator, receiver or statutory
successor on the basis of the liability of the Ceding Company under the
policy or policies reinsured without diminution because of the insolvency of
the Ceding Company. It is understood, however, that in the event of such
insolvency the liquidator or receiver or statutory successor of the Ceding
Company shall give written notice of the pendency of a claim against the
insolvent Ceding Company on the policy reinsured within a reasonable time
after such claim is filed in the insolvency proceeding. During the pendency
of such claim, the Reinsurer may investigate such claim and interpose, at
its own expense, in the proceeding where such claim is to be adjudicated any
defense which it may deem available to the Ceding Company or its liquidator
or receiver or statutory successor.
2. It is further understood that the expense thus incurred by the Reinsurer
shall be chargeable, subject to court approval, against the insolvent Ceding
Company as part of the expense of liquidation to the extent of a
proportionate share of the benefit which may accrue to the Ceding Company
solely as a result of the defense undertaken by the Reinsurer. Where two or
more reinsurers are involved in the same claim and a majority in interest
elect to interpose defense to such claim, the expenses shall be apportioned
in accordance with the terms of the reinsurance agreement as though such
expense had been incurred by the Ceding Company.
3. Any debts or credits, matured or unmatured, liquidated or unliquidated, in
favor of or against either the Reinsurers or the Ceding Company with
respect to this agreement or with respect to any other claim of one party
against the other are deemed mutual debts or credits, as the case may be,
and will be offset, and only the balance will be allowed or paid.
17.0
<PAGE>
ARTICLE 18: INSPECTION OF RECORDS
- ----------------------------------
The Reinsurer shall have the right at any reasonable time to inspect at the
office of the Ceding Company the original papers, records, books, files and
other documents relating directly or indirectly to the insurance coverage
reinsured under this Agreement.
18.0
<PAGE>
ARTICLE 19: ARBITRATION
- ------------------------
It is understood by both parties hereunder that the wording and interpretation
of this Agreement is based on the usual customs and practices of the insurance
and reinsurance industry. While both parties agree to act in good faith in their
dealings with each other, it is understood and recognized that situations arise
in which an agreement cannot be reached.
In the event that any dispute cannot be resolved to the satisfaction of both
parties, such dispute shall first be subject to good-faith negotiation as
described below in an attempt to resolve such dispute without the need to
institute a formal arbitration proceeding.
1. Negotiation. Within ten days after the first written notification of the
specific dispute has been given to the other party, each party shall appoint
a designated officer to represent that party with the objective of resolving
the dispute. The parties shall meet at a mutually agreeable location as
early as practicable and as often as deemed necessary, in order to gather
and furnish to the other party all appropriate and relevant information with
respect to the matter at issue. The officers shall discuss the problem
and/or negotiate in good faith in an effort to resolve the dispute without
the necessity of any formal arbitration proceeding. During the course of the
negotiation, all reasonable requests made by one party to the other for
information shall be honored in order that each of the parties may be fully
advised. The specific format for such discussions shall be left to the
discretion of the designated officers.
The parties agree that they will submit the dispute to formal arbitration in
the event that such officers cannot resolve the dispute within thirty days
of their first meeting. The parties may agree in writing to extend this
period for an additional thirty days.
2. Arbitration. No later than fifteen days after the final meeting, in
accordance with the negotiation period above, the parties to the negotiation
process shall give written confirmation to the Ceding Company and the
Reinsurer of their inability to resolve the dispute and their recommendation
for establishment of formal arbitration.
An arbitration panel, consisting of three arbitrators, who must be past or
present officers of life insurance companies not affiliated in any way with
the Ceding Company or the Reinsurer, shall settle the dispute.
19.0
<PAGE>
Selection of the panel shall be as follows: within thirty days of the written
recommendation of the establishment of formal arbitration procedures, the Ceding
Company and the Reinsurer shall each submit in writing to the other a list of
three candidates for the arbitration panel. The Ceding Company and the Reinsurer
shall each choose one candidate from the other party's list. Should any chosen
candidate decline to participate in the arbitration proceedings, the party which
had named such candidate shall add another name to the list, and the other party
shall again choose an arbitrator from the list. This procedure shall continue
until two arbitrators have been chosen and have agreed to serve.
The two chosen arbitrators shall choose a third from the remaining candidates
set forth on the lists described above. If the two arbitrators cannot agree on
the choice of a third, such choice shall be made by the Chairman of the American
Arbitration Association.
The date and location of the arbitration shall be set by the arbitration panel,
and shall be communicated in writing to the Ceding Company and to the Reinsurer.
In no event will the date of the arbitration occur later than six months after
the choice of the third arbitrator.
No later than thirty days before the date of the arbitration, the Ceding Company
and the Reinsurer shall supply the arbitration panel with a written statement
containing the facts of the dispute, along with any and all applicable evidence
pertaining to the case. The arbitrators shall consider all evidence which they
consider relevant and shall have the authority to request additional evidence or
statements from either party.
Within sixty days after the beginning of the arbitration proceedings, the
arbitrators shall issue a written decision regarding the dispute and a statement
of any award to be paid as a result of that decision. Their decision shall be
based on the terms and conditions of this Agreement as well as the usual customs
and practices of the insurance and reinsurance industry, rather than on strict
interpretation of the law. Their decision shall be final and binding on both
parties and there shall be no further appeal, except that either party may
petition any court having jurisdiction over the parties and the subject matter
as respects the award rendered by the arbitrators.
Unless otherwise decided by the arbitrators, all expenses resulting from the
arbitration, including the fees and expenses of the arbitrators, will be borne
jointly by
19.1
<PAGE>
each respective party to this Agreement, except that each party will be
responsible for its own attorneys' fees.
19.2
<PAGE>
ARTICLE 20: PARTIES TO THE AGREEMENT
- -------------------------------------
This is an Agreement for indemnity reinsurance solely between the Ceding
Company and the Reinsurer. The acceptance of reinsurance hereunder shall not
create any right or legal relationship whatever between the Reinsurer and the
insured or any beneficiary under any policies of the Ceding Company which may be
reinsured hereunder.
20.0
<PAGE>
ARTICLE 21: DURATION OF AGREEMENT
- ----------------------------------
The Agreement shall be unlimited in duration, but may be amended at any time by
the written agreement of the two (2) parties and may be terminated as to further
new reinsurance at any time by either party upon ninety (90) days notice in
writing. The Reinsurer shall continue to accept reinsurance during the ninety-
day period aforesaid subject to the payment of reinsurance premiums in
accordance with Article 12. Such termination as to new reinsurance shall not
affect existing reinsurance which shall remain inforce until the termination or
expiry of each reinsurance cession in accordance with the terms and conditions
of this Agreement. The Reinsurer shall not be liable under this Agreement for
any claims or premium refunds which are not reported to the Reinsurer within 180
days following the termination or expiry of all inforce individual cessions
reinsured hereunder.
21.0
<PAGE>
ARTICLE 22: EXPERIENCE REFUND
- ------------------------------
Reinsurance ceded under this Agreement shall not be eligible for an Experience
Refund.
22.0
<PAGE>
ARTICLE 23: RESERVES
- ---------------------
The Reinsurer shall maintain its proportionate share of reserves, excluding
deficiency reserves, if any, held by the Ceding Company which may be required by
state or other regulatory authority for the insurance reinsured under this
Agreement.
23.0
<PAGE>
ARTICLE 24: ENTIRE AGREEMENT
- -----------------------------
This Agreement represents the entire agreement between the Ceding Company and
the Reinsurer and supersedes, with respect to its subject matter, any prior oral
or written agreements between the parties.
No modification or waiver of any provision of this Agreement shall be effective
unless set forth in a written amendment to this Agreement which is executed by
both parties. A waiver shall constitute a waiver only with respect to the
particular circumstances for which it is given and not a waiver of any future
circumstance.
24.0
<PAGE>
ARTICLE 25: REPORTS
- --------------------
1. Quarterly Policy Reserve Report. The Ceding Company shall provide the
Reinsurer with a listing of the mean reserves attributable to the reinsured
portion of each policy reinsured.
2. Annual Tax Reserve Report. Shortly after the close of the year, the Ceding
Company shall report to the Reinsurer the amount by which the Ceding Company
will reduce its tax reserve because of the reinsurance ceded under this
Agreement. The details of the report should conform to the current
requirements of Internal Revenue Code Section 807.
3. Annual Inforce Listing. Shortly after the close of the year, the Ceding
Company shall furnish the Reinsurer with a listing of all inverse reinsured
policies, similar in form to the listing shown in Article 4.
25.0
<PAGE>
ARTICLE 26: EXECUTION OF THE AGREEMENT
- ---------------------------------------
In witness whereof the Ceding Company and the Reinsurer have caused this
Agreement to be executed in duplicate by their respective officers duly
authorized to do so.
CHUBB LIFE INSURANCE COMPANY OF AMERICA
- --------------------------- ----------------------------
Officer Signature Witness
- --------------------------- ----------------------------
Title Title
- --------------------------- ----------------------------
Date Date
<PAGE>
Exhibit 11
POWERS OF ATTORNEY
<PAGE>
POWER OF ATTORNEY
The undersigned directors and/or officers of Chubb Life Insurance Company of
America, a New Hampshire corporation (the "Company"), hereby constitute and
appoint Theresa M. Stone, Richard V. Werner and Frederick H. Condon, and each of
them (with full power to each of them to act alone), his or her true and lawful
attorney-in-fact and agent, with full power of substitution to each, for him or
her and on his or her behalf and in his or her name, place and stead, to execute
and file any of the documents referred to below relating to registrations under
the Securities Act of 1933 or the Investment Company Act of 1940 (the "Acts"):
registration statements on any form or forms under the Acts, and any and all
amendments and supplements thereto (including post-effective amendments), with
all exhibits and all agreements, consents, exemptive applications and other
documents and instruments necessary or appropriate in connection therewith, each
of said attorneys-in-fact and agents being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue thereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand, this 8th
day of December, 1995.
John C. Beck Gertrude G. Michelson
- ------------------------------- --------------------------------
John C. Beck, Director Gertrude G. Michelson, Director
Percy Chubb, III Dean R. O'Hare
- ------------------------------- --------------------------------
Percy Chubb, III, Vice Chairman Dean R. O'Hare, Chairman
and Director and Director
Joel J. Cohen Warren B. Rudman
- ------------------------------- --------------------------------
Joel J. Cohen, Director Warren B. Rudman, Director
Henry U. Harder David G. Scholey
- ------------------------------- --------------------------------
Henry U. Harder, Director David G. Scholey, Director
David H. Hoag Raymond G. Seitz
- ------------------------------- --------------------------------
David H. Hoag, Director Raymond G. Seitz, Director
Robert V. Lindsay Lawrence M. Small
- ------------------------------- --------------------------------
Robert V. Lindsay, Director Lawrence M. Small, Director
Thomas C. MacAvoy Richard D. Wood
- ------------------------------- --------------------------------
Thomas C. MacAvoy, Director Richard D. Wood, Director
<PAGE>
POWER OF ATTORNEY
The undersigned directors and/or officers of Chubb Life Insurance Company of
America, a New Hampshire corporation (the "Company"), hereby constitute and
appoint Theresa M. Stone, Richard V. Werner and Frederick H. Condon, and each of
them (with full power to each of them to act alone), his or her true and lawful
attorney-in-fact and agent, with full power of substitution to each, for him or
her and on his or her behalf and in his or her name, place and stead, to execute
and file any of the documents referred to below relating to registrations under
the Securities Act of 1933 or the Investment Company Act of 1940 (the "Acts"):
registration statements on any form or forms under the Acts, and any and all
amendments and supplements thereto (including post-effective amendments), with
all exhibits and all agreements, consents, exemptive applications and other
documents and instruments necessary or appropriate in connection therewith, each
of said attorneys-in-fact and agents being empowered to act with or without the
others or other, and to have full power and authority to do or cause to be done
in the name and on behalf of the undersigned each and every act and thing
requisite and necessary or appropriate with respect thereto to be done in and
about the premises in order to effectuate the same, as fully to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may do or
cause to be done by virtue thereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand, this 8th
day of December, 1995.
/s/ John C. Beck /s/ Gertrude G. Michelson
- ------------------------------- --------------------------------
John C. Beck, Director Gertrude G. Michelson, Director
/s/ Percy Chubb, III /s/ Dean R. O'Hare
- ------------------------------- --------------------------------
Percy Chubb, III, Vice Chairman Dean R. O'Hare, Chairman
and Director and Director
/s/ Joel J. Cohen /s/ Warren B. Rudman
- ------------------------------- --------------------------------
Joel J. Cohen, Director Warren B. Rudman, Director
/s/ Henry U. Harder /s/ David G. Scholey
- ------------------------------- --------------------------------
Henry U. Harder, Director David G. Scholey, Director
/s/ David H. Hoag /s/ Raymond G. Seitz
- ------------------------------- --------------------------------
David H. Hoag, Director Raymond G. Seitz, Director
/s/ Robert V. Lindsay /s/ Lawrence M. Small
- ------------------------------- --------------------------------
Robert V. Lindsay, Director Lawrence M. Small, Director
/s/ Thomas C. MacAvoy /s/ Richard D. Wood
- ------------------------------- --------------------------------
Thomas C. MacAvoy, Director Richard D. Wood, Director
<PAGE>
POWER OF ATTORNEY
The undersigned directors and/or officers of Chubb Life Insurance Company of
America, a New Hampshire corporation (the "Company"), hereby constitute and
appoint Theresa M. Stone, Richard V. Werner and Frederick H. Condon, and each
of them (with full power for each of them to act alone), his or her true and
lawful attorney-in-fact and agent, with full power of substitution to each, for
him or her and on his or her behalf and in his or her name, place and stead, to
execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933 or the Investment Company Act of
1940 (the "Acts"): registration statements on any form or forms under the Acts,
and any and all amendments and supplements thereto (including post-effective
amendments), with all exhibits and all agreements, consents, exemptive
applications and other documents and instruments necessary or appropriate in
connection therewith, each of said attorneys-in-fact and agents being empowered
to act with or without the others or other, and to have full power and authority
to do or cause to be done in the name and on behalf of the undersigned each and
every act and thing requisite and necessary or appropriate with respect thereto
to be done in and about the premises in order to effectuate the same, as fully
to all intents and purposes as the undersigned might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents, or
any of them, may do or cause to be done by virtue thereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand, this 8th
day of December, 1995.
/s/ John C. Beck /s/ Gertrude G. Michelson
- ------------------------------- --------------------------------
John C. Beck, Director Gertrude G. Michelson, Director
/s/ Percy Chubb, III /s/ Dean R. O'Hare
- ------------------------------- --------------------------------
Percy Chubb, III, Vice Chairman Dean R. O'Hare, Chairman
and Director and Director
/s/ Joel J. Cohen /s/ Warren B. Rudman
- ------------------------------- --------------------------------
Joel J. Cohen, Director Warren B. Rudman, Director
/s/ Henry U. Harder /s/ David G. Scholey
- ------------------------------- --------------------------------
Henry U. Harder, Director David G. Scholey, Director
/s/ David H. Hoag /s/ Raymond G. Seitz
- ------------------------------- --------------------------------
David H. Hoag, Director Raymond G. Seitz, Director
/s/ Robert V. Lindsay /s/ Lawrence M. Small
- ------------------------------- --------------------------------
Robert V. Lindsay, Director Lawrence M. Small, Director
/s/ Thomas C. MacAvoy /s/ Richard D. Wood
- ------------------------------- --------------------------------
Thomas C. MacAvoy, Director Richard D. Wood, Director
<PAGE>
POWER OF ATTORNEY
The undersigned directors and/or officers of Chubb Life Insurance Company of
America, a New Hampshire corporation (the "Company"), hereby constitute and
appoint Theresa M. Stone, Richard V. Werner and Frederick H. Condon, and each
of them (with full power to each of them to act alone), his or her true and
lawful attorney-in-fact and agent, with full power of substitution to each, for
him or her and on his or her behalf and in his or her name, place and stead, to
execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933 or the Investment Company Act of
1940 (the "Acts"): registration statements on any form or forms under the Acts,
and any and all amendments and supplements thereto (including post-effective
amendments), with all exhibits and all agreements, consents, exemptive
applications and other documents and instruments necessary or appropriate in
connection therewith, each of said attorneys-in-fact and agents being empowered
to act with or without the others or other, and to have full power and authority
to do or cause to be done in the name and on behalf of the undersigned each and
every act and thing requisite and necessary or appropriate with respect thereto
to be done in and about the premises in order to effectuate the same, as fully
to all intents and purposes as the undersigned might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents, or
any of them, may do or cause to be done by virtue thereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand, this 8th
day of December, 1995.
/s/ John C. Beck /s/ Gertrude G. Michelson
- ------------------------------- --------------------------------
John C. Beck, Director Gertrude G. Michelson, Director
/s/ Percy Chubb, III /s/ Dean R. O'Hare
- ------------------------------- --------------------------------
Percy Chubb, III, Vice Chairman Dean R. O'Hare, Chairman
and Director and Director
/s/ Joel J. Cohen /s/ Warren B. Rudman
- ------------------------------- --------------------------------
Joel J. Cohen, Director Warren B. Rudman, Director
/s/ Henry U. Harder /s/ David G. Scholey
- ------------------------------- --------------------------------
Henry U. Harder, Director David G. Scholey, Director
/s/ David H. Hoag /s/ Raymond G. Seitz
- ------------------------------- --------------------------------
David H. Hoag, Director Raymond G. Seitz, Director
/s/ Robert V. Lindsay /s/ Lawrence M. Small
- ------------------------------- --------------------------------
Robert V. Lindsay, Director Lawrence M. Small, Director
/s/ Thomas C. MacAvoy /s/ Richard D. Wood
- ------------------------------- --------------------------------
Thomas C. MacAvoy, Director Richard D. Wood, Director
<PAGE>
POWER OF ATTORNEY
The undersigned directors and/or officers of Chubb Life Insurance Company of
America, a New Hampshire corporation (the "Company"), hereby constitute and
appoint Theresa M. Stone, Richard V. Werner and Frederick H. Condon, and each
of them (with full power for each of them to act alone), his or her true and
lawful attorney-in-fact and agent, with full power of substitution to each, for
him or her and on his or her behalf and in his or her name, place and stead, to
execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933 or the Investment Company Act of
1940 (the "Acts"): registration statements on any form or forms under the Acts,
and any and all amendments and supplements thereto (including post-effective
amendments), with all exhibits and all agreements, consents, exemptive
applications and other documents and instruments necessary or appropriate in
connection therewith, each of said attorneys-in-fact and agents being empowered
to act with or without the others or other, and to have full power and authority
to do or cause to be done in the name and on behalf of the undersigned each and
every act and thing requisite and necessary or appropriate with respect thereto
to be done in and about the premises in order to effectuate the same, as fully
to all intents and purposes as the undersigned might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents, or
any of them, may do or cause to be done by virtue thereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand, this 8th
day of December, 1995.
/s/ John C. Beck /s/ Gertrude G. Michelson
- ------------------------------- --------------------------------
John C. Beck, Director Gertrude G. Michelson, Director
/s/ Percy Chubb, III /s/ Dean R. O'Hare
- ------------------------------- --------------------------------
Percy Chubb, III, Vice Chairman Dean R. O'Hare, Chairman
and Director and Director
/s/ Joel J. Cohen /s/ Warren B. Rudman
- ------------------------------- --------------------------------
Joel J. Cohen, Director Warren B. Rudman, Director
/s/ Henry U. Harder /s/ David G. Scholey
- ------------------------------- --------------------------------
Henry U. Harder, Director David G. Scholey, Director
/s/ David H. Hoag /s/ Raymond G. Seitz
- ------------------------------- --------------------------------
David H. Hoag, Director Raymond G. Seitz, Director
/s/ Robert V. Lindsay /s/ Lawrence M. Small
- ------------------------------- --------------------------------
Robert V. Lindsay, Director Lawrence M. Small, Director
/s/ Thomas C. MacAvoy /s/ Richard D. Wood
- ------------------------------- --------------------------------
Thomas C. MacAvoy, Director Richard D. Wood, Director
<PAGE>
Exhibit 12
MEMORANDUM REGARDING RELIANCE ON
ORDER OF THE COMMISSION
<PAGE>
[LETTERHEAD OF CHUBB LIFE AMERICA LOGO APPEARS HERE]
MEMORANDUM REGARDING RELIANCE ON ORDER OF THE
SECURITIES AND EXCHANGE COMMISSION
Registrant, in deducting from premium payments what is commonly referred to as a
"DAC tax" charge, will rely on the order of exemption from Section 27(c)(2) of
the 1940 Act, and Rule 6e-3(T)(b)(13) and (c)(4) thereunder, granted on
August 10, 1994 to Chubb Life Insurance Company of America ("Chubb Life") and
its Chubb Separate Account C; which order also granted relief to certain future
policies and separate accounts, including those established by life insurance
companies affiliated with Chubb Life. (See Investment Company Act Release No.
20471; File No. 812-8720.)
/s/ Kurt W. Bernlohr
Kurt W. Bernlohr
Assistant Counsel
