<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 29, 1997
FILE NO. 33-72830
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 5
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF SECURITIES OF UNIT
INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
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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
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IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE
BOX)
[_] IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (B)
[X] ON MAY 1, 1997 PURSUANT TO PARAGRAPH (B)
[_] 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (A)(I)
[_] ON MAY 1, 1997 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 SURVIVOR-
SHIP 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, 1996
ON FEBRUARY 27, 1997.
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 In-
vestment Company Act of 1940, with respect to the policy described in the Pro-
spectus.
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<PAGE>
THE CHUBB HERITAGE SERIES
CHUBB SEPARATE ACCOUNT C
INDIVIDUAL AND SURVIVORSHIP FLEXIBLE
PREMIUM VARIABLE LIFE INSURANCE POLICIES
ISSUED BY
CHUBB LIFE INSURANCE COMPANY OF AMERICA
ONE GRANITE PLACE
CONCORD, NEW HAMPSHIRE 03301
(603) 226-5000
This Prospectus describes two forms of a flexible premium variable life
insurance policy issued by Chubb Life Insurance Company of America ("Chubb
Life"): an individual flexible premium variable life insurance policy form
("Chubb 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 JPM Series Trust
II (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 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 JPM SERIES TRUST II
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 JANUARY 1, 1997
<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
JPM SERIES TRUST II...................... 9
THE POLICIES............................. 10
General................................ 10
Payment of Premiums.................... 11
Guaranteed Death Benefit Premiums...... 11
Premium Limitations.................... 11
Allocation of Premiums................. 11
Transfers.............................. 12
Telephone Transfers, Loans and
Reallocations......................... 13
Policy Lapse........................... 13
Reinstatement.......................... 14
Policy "Free Look"..................... 14
CHARGES AND DEDUCTIONS................... 14
Premium Charges........................ 14
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............... 19
Combined Requests...................... 19
Maturity of the Policy................. 19
Optional Insurance Benefits............ 19
Settlement Options..................... 20
CALCULATION OF ACCUMULATION VALUE........ 20
Unit Values............................ 21
Net Investment Factor.................. 21
CASH VALUE BENEFITS...................... 22
Surrender Privileges................... 22
Policy Loans........................... 22
</TABLE>
<TABLE>
<CAPTION>
PAGE
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<S> <C>
OTHER MATTERS.................................. 23
Voting Rights................................ 23
Additions, Deletions or Substitutions of
Investments................................. 24
Annual Report................................ 24
Confirmation................................. 24
Limitation on Right to Contest............... 25
Misstatements................................ 25
Suicide...................................... 25
Beneficiaries................................ 25
Postponement of Payments..................... 25
Assignment................................... 25
Illustration of Benefits and Values.......... 25
Non-Participating Policy..................... 25
THE GENERAL ACCOUNT............................ 25
General Description.......................... 26
General Account Accumulation Value........... 26
Determination of Charges..................... 26
Premium Deposit Fund......................... 26
DISTRIBUTION OF THE POLICY..................... 26
Group or Sponsored Arrangements.............. 27
MANAGEMENT OF CHUBB LIFE....................... 28
Executive Officers and Directors of Chubb
Life........................................ 28
Executive Officers (Other Than Directors).... 29
STATE REGULATION OF CHUBB LIFE................. 30
FEDERAL TAX MATTERS............................ 30
Tax Considerations........................... 30
Policy Proceeds.............................. 30
Charge for Chubb Life Income Taxes........... 32
EMPLOYEE BENEFIT PLANS......................... 33
LEGAL PROCEEDINGS.............................. 33
EXPERTS........................................ 33
REGISTRATION STATEMENT......................... 33
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.]
2
<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.
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--JPM Series Trust II, 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.
3
<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.
4
<PAGE>
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 if any
premiums, scheduled or unscheduled would cause their Policies to be deemed to
be modified endowment contracts and allow for a refund of the excess premium.
See "FEDERAL TAX MATTERS--Policy Proceeds".
Failure to pay premiums in accordance with the schedule of Planned Periodic
Premiums will not automatically cause the Policy to lapse. Unless the
Guaranteed Death Benefit Rider is in force and the conditions under the Rider
satisfied, it will lapse when the Cash Value less outstanding Policy Debt is
insufficient to pay the monthly deduction for certain charges ("monthly
deduction") and a grace period expires without a sufficient payment by the
Policyowner. Conversely, payment of premiums in accordance with the schedule of
Planned Periodic Premiums does not necessarily mean that the Policy will remain
in force. See "THE POLICIES--Policy Lapse".
The Guaranteed Death Benefit Rider guarantees that the Death Benefit will
never be less than the Specified Amount provided that a cumulative minimum
premium requirement is met.
WHAT IS CHUBB SEPARATE ACCOUNT C?
Separate Account C is a separate account established by Chubb Life pursuant
to the insurance laws of the State of New Hampshire and organized as a
registered unit investment trust under the Investment Company Act of 1940 (the
"1940 Act"). Such registration does not involve any supervision by the
Securities and Exchange Commission (the "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 JPM Series Trust II
(the "Trust").
WHAT IS JPM SERIES TRUST II?
The Trust is registered as an open-end diversified management company under
the 1940 Act. Its shares are offered 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, its affiliated
insurance companies, or other insurance companies and to qualified pension and
retirement plans outside of the separate account contest.
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 JPM Treasury Money Market Portfolio, the JPM Bond Portfolio, the JPM Equity
Portfolio, the JPM Small Company Portfolio and the JPM International Equity
Portfolio.
The investment manager to the Trust is J.P. Morgan Investment Management,
Inc. ("JPMIM"), an affiliate of Morgan Guaranty Trust Company of New York
("Morgan Guaranty"). JPMIM receives fees from the Trust for providing
investment management services. The fees range from .20 percent to .60 percent
of average daily net assets of the Portfolios. See "JPM SERIES TRUST II".
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".
5
<PAGE>
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.
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".
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WHAT IS THE DEATH BENEFIT?
The Death Benefit under Chubb Heritage I is the amount payable to the named
Beneficiary when the person 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.
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.
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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".
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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.
Effective April 30, 1997, Chubb Life, formerly a wholly-owned subsidiary of
the Chubb Corporation became a wholly-owned subsidiary of Jefferson-Pilot
Corporation, a North Carolina corporation. The principal offices of Jefferson-
Pilot Corporation are located at 100 North Greene Street, Greensboro, North
Carolina 27401. Its telephone number is 910-691-3000. 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, 1996, of
$4,731,819,000 and had over $68 billion of insurance in force, while total
assets of Jefferson-Pilot Corporation, as of the same date, were approximately
$17.5 billion.
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. Contemporaneous with its sale to Jefferson-Pilot
Corporation, Chubb Life is currently rated AA (Excellent) 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.
JPM SERIES TRUST II
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 to the Divisions, and may also be offered to
other separate accounts that fund variable life policies or variable annuities
which are established by Chubb Life or other insurance companies and to
qualified pension and retirement plans outside of the separate account
context. The assets of each Portfolio are maintained separately from the
assets of the other Portfolios and each Portfolio has investment objectives
and policies
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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 J.P. Morgan Investment Management,
Inc. ("JPMIM"), which is an affiliate of Morgan Guaranty Trust Company of New
York ("Morgan Guaranty").
An investment management fee is charged monthly against each Portfolio by
JPMIM at the annual rate of .20 percent of the average daily net asset value
of the JPM Treasury Money Market Portfolio, .30 percent of the average daily
net asset value of the JPM Bond Portfolio, .40 percent of the average daily
net asset value of the JPM Equity Portfolio, .60 percent of the average daily
net asset value of the JPM Small Company Portfolio and the JPM International
Equity Portfolio.
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.
JPM TREASURY MONEY MARKET PORTFOLIO seeks to provide current income,
maintain a high level of liquidity and preserve capital.
JPM BOND PORTFOLIO seeks to provide a high total return consistent with
moderate risk of capital and maintenance of liquidity.
JPM EQUITY PORTFOLIO seeks to provide a high total return from a portfolio
comprised of selected equity securities.
JPM SMALL COMPANY PORTFOLIO seeks to provide a high total return from a
portfolio of equity securities of small companies.
JPM 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.
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".
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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. The Specified Amounts for multiple trusts owning policies covering the
same insureds may be combined in order to reach the minimum Specified Amount.
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 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 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
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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
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
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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 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.
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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 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.
14
<PAGE>
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.
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. The Monthly Deduction Adjustment 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:
<TABLE>
<S> <C>
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
</TABLE>
(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 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.
15
<PAGE>
<TABLE>
<CAPTION>
MORTALITY MORTALITY
MONTHLY RISK RISK
MORTALITY DEDUCTION CHARGE CHARGE EFFECTIVE
SPECIFIED RISK ADJUST- BELOW ABOVE MORTALITY
AMOUNT CHARGE MENT GSP GSP RISK CHARGE*
--------- --------- --------- --------- --------- ------------
<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 "JPM SERIES TRUST II".
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.
16
<PAGE>
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 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
17
<PAGE>
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>
CHUBB HERITAGE II
<TABLE>
<CAPTION>
CASH VALUE ACCUMULATION GUIDELINE PREMIUM
TEST 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.
18
<PAGE>
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
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."
19
<PAGE>
(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 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 assessed in connection with the Policy.
Accumulation Values in Separate Account C are not guaranteed as to dollar
amount.
20
<PAGE>
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 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.
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<PAGE>
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 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.
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<PAGE>
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. 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
23
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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 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
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(10) reinstatements; and
(11) redemptions due to insufficient funds.
LIMITATION ON RIGHT TO CONTEST. Chubb Life will not contest or revoke the
insurance coverage provided under the Policy, except for any subsequent
increase in Specified Amount, after the Policy has been in force during the
lifetime of each Insured for a period of two years from the date it is issued.
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.
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
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<PAGE>
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 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
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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.
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.
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MANAGEMENT OF CHUBB LIFE
Executive Officers and Directors of Chubb Life
DIRECTORS
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION AND
NAME BUSINESS ADDRESS
- ---- ------------------------
<S> <C>
John C. Beck..................... Managing Partner
Beck, Mack & Oliver
330 Madison Avenue-31st Floor
New York, NY 10017-5001
James I. Cash.................... Professor
Harvard Business School
Soldiers Field Road
Boston, Massachusetts 02163
*Percy Chubb, III................ Vice Chairman
The Chubb Corporation
(also serves as Vice Chairman of Chubb Life Insurance Company of America)
15 Mountain View Road
P.O. Box 1615
Warren, New Jersey 07061-1615
Joel J. Cohen.................... Managing Director
Donaldson, Lufkin & Jenrette Securities Corporation
140 Broadway, 49th Floor
New York, NY 10005
David H. Hoag.................... Chairman, President & CEO
The LTV Corporation
25 West Prospect Avenue
Cleveland, OH 44115
Robert V. Lindsay................ Former President
J.P. Morgan & Co., Inc.
Altamont Road
Millbrook, NY 12545
Thomas C. MacAvoy................ Professor
Darden Graduate School of Business Administration
University of Virginia
Box 6550
Charlottesville, VA 22906-6550
Gertrude G. Michelson............ R.H. Macy & Co., Inc.
Herald Square--13th Floor
New York, NY 10001
*Dean R. O'Hare.................. Chairman and President
The Chubb Corporation
(also serves as Chairman of Chubb Life Insurance Company of America)
15 Mountain View Road
P.O. Box 1615
Warren, NJ 07061-1615
Warren B. Rudman................. Partner
Paul, Weiss, Rifkind, Wharton & Garrison
1615 L Street, N.W.,
Suite 1300
Washington, D.C. 20036
Sir David G. Scholey, CBE........ Chairman
S.G. Warburg Group plc
One Finsbury Avenue
London EC2M 2PA England
Raymond G.H. Seitz............... Former Ambassador of the United States of America
10 Trevor Square
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>
- -------
* Executive Officer of Chubb Life
28
<PAGE>
EXECUTIVE OFFICERS (OTHER THAN DIRECTORS)
<TABLE>
<CAPTION>
NAME
- ----
<S> <C>
Theresa M. Stone........ President and Chief Executive Officer
David S. Fowler......... Vice Chairman
Charles C. Cornelio..... Executive Vice President, Assistant Secretary and Chief Administrative 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
Vincent G. Mace, Jr..... Senior Vice President, Group Actuary
Michael O'Reilly........ Senior Vice President
Warren L. Reynolds...... Senior Vice President
Paul Strong............. Senior Vice President
John W. Wells........... Senior Vice President
Thomas M. Bodrogi....... Vice President
Margaret Cain........... Vice President
Rebecca M. Clark........ Vice President
Mark Connolly........... Vice President
Ronald B. Emery......... Vice President
J. Michael Gannon....... Vice President
Ned I. Gerstman......... Vice President
Donald M. Kane.......... Vice President
Patrick A. Lang......... Vice President
Deborah A. Leitch....... Vice President
Sandra MacIntyre........ Vice President
Edward C. MacKenzie..... Vice President
Donna L. Metcalf........ Vice President
Thomas E. Murphy, Jr. Vice President, Associate Medical Director
M.D. ..................
Kenneth L. Robinson, Vice President
Jr.....................
James M. Sandelli....... Vice President
Russell C. Simpson...... Vice President and Treasurer
William A. Spencer...... Vice President
William H. Tate......... Vice President
John A. Thomas.......... Vice President
Ernest J. Tsouros....... Vice President
David G. Underwood II, Vice President and Medical Director
M.D. ..................
</TABLE>
29
<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 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
30
<PAGE>
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 unless the policyowner requests a refund of the
excess premium, as outlined above. 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, pledge, assignment 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 to the extent accumulation value exceeds investment as
described above. Also, any distributions within two years before a policy
becomes a modified endowment contract will also be income taxable to the
policyowner, as described above. 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. 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
31
<PAGE>
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 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
32
<PAGE>
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.
EXPERTS
The financial statements of Chubb Life and the financial statements of
Separate Account C at December 31, 1996 and for the related periods then
ended, appearing in this Prospectus and Registration Statement have been
audited by Ernst & Young LLP, independent auditors, as set forth in their
reports thereon appearing elsewhere herein and in the Registration Statement,
and are included in reliance upon such reports given upon the authority of
such firm as experts in accounting and auditing.
Actuarial matters included in this Prospectus have been examined by Michael
J. LeBoeuf, FSA, MAAA as stated in the opinion filed as an exhibit to the
Registration Statement.
REGISTRATION STATEMENT
A Registration Statement has been filed with the 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.
In the second quarter of 1996, the Company announced a plan to exit the
group health insurance business. A definitive agreement was reached May 31,
1996 with Healthsource Inc. under which Healthsource acquired the Company's
85% interest in Chubb Health, Inc. The sale was completed on December 31,
1996. The Company also discontinued the marketing of traditional group health
indemnity business. During the fourth quarter of 1996, the Company's former
Parent, The Chubb Corporation, announced its intention to evaluate its
strategic alternatives with respect to the life insurance companies, including
the possible sale or spin-off of the business. The Chubb Corporation entered
into a definitive agreement dated February 23, 1997, to sell the Company to
Jefferson-Pilot Corporation for $875,000,000. The sale was effective April 30,
1997.
33
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors
Chubb Life Insurance Company of America
We have audited the accompanying consolidated balance sheet of Chubb Life
Insurance Company of America and subsidiaries as of December 31, 1996 and the
related consolidated statements of income, shareholder's equity, and cash
flows for the year then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Chubb Life
Insurance Company of America and subsidiaries at December 31, 1996 and the
consolidated results of their operations and their cash flows for the year
then ended, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Boston, Massachusetts
March 5, 1997
F-1
<PAGE>
CONSOLIDATED BALANCE SHEET
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
DECEMBER 31, 1996
(IN THOUSANDS)
<TABLE>
<S> <C>
ASSETS
Invested assets (Note 4)
Fixed maturities, held-to-maturity, at amortized cost............. $ 381,230
Fixed maturities, available-for-sale, at market................... 2,498,281
Equity securities, at market...................................... 30,681
Short term investments, at cost................................... 48,333
Policy loans...................................................... 217,857
Mortgage loans on real estate..................................... 8,945
----------
Total invested assets............................................... 3,185,327
----------
Accrued investment income........................................... 52,473
Uncollected premiums................................................ 5,782
Reinsurance recoverable on life and health policy liabilities....... 190,505
Deferred policy acquisition costs (Note 5).......................... 644,653
Value assigned purchased insurance in force (Note 5)................ 34,460
Goodwill, net of accumulated amortization of $24,253................ 63,196
Property and equipment, net of accumulated depreciation of $50,609.. 37,835
Receivable--sale of subsidiary (Note 3)............................. 25,647
Separate account assets............................................. 401,430
Other assets........................................................ 90,511
----------
1,546,492
----------
Total assets........................................................ $4,731,819
==========
LIABILITIES
Policy liabilities
Policy fund balances.............................................. $2,415,001
Future policy benefits............................................ 636,283
Policy and contract claims........................................ 72,422
Premiums paid in advance.......................................... 1,628
Other policyholders' funds........................................ 105,322
----------
3,230,656
Mortgage loan payable (Note 13)..................................... 4,369
Loans payable (Note 13)............................................. 50,500
Federal income taxes payable (Note 6)............................... 10,364
Deferred federal income taxes (Note 6).............................. 53,583
Separate account liabilities........................................ 401,430
Net liabilities of discontinued operations.......................... 18,499
Accrued expenses and other liabilities (Note 7,8)................... 96,388
----------
Total liabilities................................................... 3,865,789
Commitments and contingent liabilities (Note 10,14)
SHAREHOLDER'S EQUITY
Common stock--$5 par value, 600,000 shares authorized, issued and
outstanding...................................................... 3,000
Paid-in capital................................................... 249,872
Unrealized appreciation of investments, net (Note 4).............. 17,622
Retained earnings................................................. 595,536
----------
Total shareholder's equity.......................................... 866,030
----------
Total liabilities and shareholder's equity.......................... $4,731,819
==========
</TABLE>
See accompanying notes.
F-2
<PAGE>
CONSOLIDATED STATEMENT OF INCOME
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
YEAR ENDED DECEMBER 31, 1996
(IN THOUSANDS)
<TABLE>
<S> <C>
REVENUES
Premiums and policy charges (Note 11)............................... $337,782
Net investment income (Note 4)...................................... 236,482
Realized investment gains (Note 4).................................. 12,587
Other income........................................................ 2,945
--------
Total revenues........................................................ 589,796
BENEFITS, CLAIMS AND EXPENSES
Policy benefits and claims.......................................... 304,780
Change in reserves for future policy benefits....................... 16,034
--------
320,814
EXPENSES
Commissions and other operating expenses............................ 95,034
Amortization........................................................ 99,313
--------
194,347
--------
Total benefits, claims and expenses................................... 515,161
--------
Income from continuing operations before federal income tax........... 74,635
Federal income tax (benefit) (Note 6)
Current............................................................. 31,100
Deferred............................................................ (6,001)
--------
25,099
--------
Income from continuing operations..................................... 49,536
Discontinued operations (Note 3):
Loss from operations, net of tax.................................... (1,045)
--------
Net income............................................................ $ 48,491
========
</TABLE>
See accompanying notes.
F-3
<PAGE>
CONSOLIDATED STATEMENT OF SHAREHOLDER'S EQUITY
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
YEAR ENDED DECEMBER 31, 1996
(IN THOUSANDS)
<TABLE>
<S> <C>
Common stock
Balance, beginning and end of year.................................. $ 3,000
--------
Paid-in capital
Balance, beginning and end of year.................................. 249,872
--------
Unrealized appreciation (depreciation) of investments, net
Balance, beginning of year.......................................... 40,720
Change, net (Note 4)................................................ (23,098)
--------
Balance, end of year................................................ 17,622
--------
Retained earnings
Balance, beginning of year.......................................... 551,053
Net income.......................................................... 48,491
Dividends to parent................................................. (4,008)
--------
Balance, end of year................................................ 595,536
--------
Total shareholder's equity............................................ $866,030
========
</TABLE>
See accompanying notes.
F-4
<PAGE>
CONSOLIDATED STATEMENT OF CASH FLOWS
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
YEAR ENDED DECEMBER 31, 1996
(IN THOUSANDS)
<TABLE>
<S> <C>
OPERATING ACTIVITIES
Net income.......................................................... $ 48,491
Adjustments to reconcile net income to net cash used in operating
activities:
Increase in future policy benefits, policy and contract claims and
premiums paid in advance, net.................................... 1,299
Decrease in uncollected premiums.................................. 5,234
Increase in policy acquisition costs deferred, net of amortiza-
tion............................................................. (56,603)
Net amortization of value assigned purchased insurance in force... 4,249
Increase in accrued investment income............................. (6,473)
Realized investment gains......................................... (12,587)
Accretion of investment discounts................................. (3,264)
Provision for depreciation........................................ 7,442
Provision for deferred income tax................................. (6,001)
Increase in federal income tax payable............................ 1,531
Other, net........................................................ (15,445)
---------
Net cash used in operating activities............................... (32,127)
INVESTING ACTIVITIES
Proceeds from sales of fixed maturities............................. 360,570
Proceeds from maturities of fixed maturities........................ 184,065
Proceeds from sales of equity securities............................ 56,355
Purchases of fixed maturities....................................... (815,231)
Purchases of equity securities...................................... (44,327)
Decrease in short term investments, net............................. 4,505
Policy loans issued, net of repayments.............................. (15,152)
Mortgage loans, net................................................. 711
Other, net.......................................................... (1,147)
---------
Net cash used for investing activities.............................. (269,651)
FINANCING ACTIVITIES
Deposits credited to policyholders' funds........................... 460,687
Withdrawals from policyholders' funds............................... (165,283)
Mortgage debt principal payments.................................... (843)
Dividends to Parent................................................. (4,008)
Increase in loans payable........................................... 14,500
Decrease in cash overdraft.......................................... (3,275)
---------
Net cash provided by financing activities........................... 301,778
Increase in cash.................................................... 0
---------
Cash, beginning and end of year (Note 1)............................ $ 0
=========
</TABLE>
See accompanying notes.
F-5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
DECEMBER 31, 1996
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles (GAAP) and include
the accounts of Chubb Life Insurance Company of America (the Company) and its
subsidiaries. Principal subsidiaries include Chubb Colonial Life Insurance
Company (Colonial), Chubb Sovereign Life Insurance Company (Sovereign), Chubb
America Service Corporation and Chubb Investment Advisory Corporation.
Significant intercompany transactions have been eliminated in consolidation.
Chubb Life Insurance Company of America is wholly-owned by The Chubb
Corporation (the Parent). On February 23, 1997, The Chubb Corporation entered
into a definitive agreement to sell its life and health subsidiaries to
Jefferson-Pilot Corporation. (see Note 15).
The consolidated financial statements reflect estimates and judgments made
by management which affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
The Company is principally engaged in the sale of individual life insurance
and investment products. These products are marketed primarily through
personal producing general agents throughout the United States.
In the second quarter of 1996, the Company adopted a plan to exit the group
insurance business. Accordingly, the group insurance business has been
classified as discontinued operations in the consolidated financial
statements. (see Note 3).
RECOGNITION OF REVENUES, BENEFITS, CLAIMS AND EXPENSES:
UNIVERSAL LIFE PRODUCTS
Universal life products include universal life insurance, variable universal
life insurance, and other interest-sensitive life insurance policies. Revenues
for universal life products consist of policy charges for the cost of
insurance, policy administration and surrenders that have been assessed
against policy account balances during the period.
Policy fund liabilities for universal life and other interest-sensitive life
insurance policies are computed in accordance with the retrospective deposit
method and represent policy account balances before surrender charges. Policy
fund assets and liabilities for variable universal life insurance are
segregated and recorded as separate account assets and liabilities. Separate
account assets are carried at market values as of the balance sheet date and
are invested by the Company at the direction of the policyholder. Investments
are made in one or more of eighteen portfolios in a series fund. Each of the
portfolios has specific investment objectives and the investment income and
investment gains and losses accrue directly to, and investment risk is borne
by, the policyholders. Accordingly, operating results of the separate account
are not included in the consolidated statement of income.
Policy claims that are charged to expense include claims incurred in the
period in excess of related policy account balances. Other policy benefits
include interest credited to universal life and other interest-sensitive life
insurance policies. Interest crediting rates ranged from 4% to 6 7/8%.
INVESTMENT PRODUCTS
Investment products include flexible premium annuities, structured
settlement annuities and other supplementary contracts without life
contingencies. Revenues for investment products consist of policy charges for
the cost of insurance, policy administration and surrenders that have been
assessed against policy account balances during the period. Deposits for these
products are recorded as policy fund liabilities, which are increased by
interest credited to the liabilities and decreased by withdrawals and
administrative charges assessed against the contract holders. Interest
crediting rates ranged from 3 1/2% to 6 3/4%.
F-6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
TRADITIONAL LIFE INSURANCE PRODUCTS
Traditional life insurance products include those products with fixed and
guaranteed premiums and benefits. Premium revenues for traditional life
insurance are recognized as revenues when due. The liabilities for future
policy benefits are computed by the net level premium method based on
estimated future investment yield, mortality and withdrawal experience.
Interest rate assumptions ranged from 3% to 9%. Mortality is calculated
principally on an experience multiple applied to select and ultimate tables in
common usage in the industry. Estimated withdrawals are determined principally
based on industry tables. Policy benefits and claims are charged to expense as
incurred.
ACCIDENT AND HEALTH INSURANCE
Accident and health insurance premiums are earned on a monthly pro rata
basis over the terms of the policies. Benefits include paid claims plus an
estimate for known claims and claims incurred but not reported as of the
balance sheet date.
REINSURANCE
In the ordinary course of business, the Company and its insurance
subsidiaries assume and cede reinsurance with other insurance companies. These
arrangements minimize the maximum net loss potential arising from large risks.
Ceded reinsurance contracts do not relieve the Company and its insurance
subsidiaries from their obligation to policyholders. The Company evaluates the
financial condition of its reinsurers and monitors concentrations of credit
risk arising from similar activities or economic characteristics of the
reinsurers to minimize its exposure to significant losses from reinsurer
insolvencies.
Reinsurance recoverable on life and health policy liabilities represent
estimates of the portion of such liabilities that will be recovered from
reinsurers, determined in a manner consistent with the liabilities associated
with the reinsured policies.
DEFERRED POLICY ACQUISITION COSTS
Certain costs of acquiring insurance contracts, principally commissions,
underwriting costs and certain variable field office expenses, are deferred.
Deferred policy acquisition costs for universal life and investment contracts
are amortized over the lives of the contracts in relation to the present value
of estimated gross profits expected to be realized. Deferred policy
acquisition costs related to universal life and investment contracts are also
adjusted to reflect the effects that the unrealized gains or losses on
investments classified as available-for-sale would have had on the present
value of estimated gross profits had such gains or losses actually been
realized. This adjustment is excluded from income and charged or credited
directly to the unrealized appreciation or depreciation of the investments
component of shareholder's equity, net of applicable deferred income tax.
Traditional life insurance deferred policy acquisition costs are being
amortized over the premium-payment period of the related policies using
assumptions consistent with those used in computing policy benefit reserves.
VALUE ASSIGNED PURCHASED INSURANCE IN FORCE
The value assigned purchased insurance in force is amortized principally
over the estimated life of the insurance in force at the date of acquisition
in proportion to the emergence of profit using assumptions consistent with
those used in the amortization of the deferred policy acquisition costs.
Interest accrues on the unamortized balance at rates ranging from 6 1/4% to 9
1/2%. Value assigned purchased insurance in force related to universal life
and investment contracts also is adjusted to reflect the effects that the
unrealized gains or losses on investments classified as available-for-sale
would have had on the present value of estimated gross profits had such gains
or losses actually been realized. This adjustment is excluded from income and
charged or credited directly to the unrealized appreciation or depreciation of
the investments component of shareholder's equity, net of applicable deferred
income tax.
F-7
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INVESTED ASSETS
Short term investments, which have an original maturity of one year or less,
are carried at amortized cost.
Fixed maturities, which include bonds and redeemable preferred stocks, are
purchased to support the investment strategies of the Company. These
strategies are developed based on many factors including rate of return,
maturity, credit risk, tax considerations and regulatory requirements. Those
fixed maturities which the Company has the ability and intent to hold to
maturity are considered held-to-maturity and carried at amortized cost. Fixed
maturities which may be sold prior to maturity to support the investment
strategies of the Company are considered available-for-sale and carried at
market value as of the balance sheet date.
Equity securities, which include common stocks and non-redeemable preferred
stocks, are carried at market values as of the balance sheet date.
Policy loans are carried at the unpaid balances. Mortgage loans on real
estate are carried at the unpaid balances, adjusted for amortization of
premium or discount.
Realized gains and losses on the sale of investments are determined on the
basis of the cost of the specific investments sold and are credited or charged
to income. Unrealized appreciation or depreciation of investments classified
as available-for-sale, net of the deferred policy aquisition costs adjustment
discussed above and the applicable deferred income tax, is excluded from
income and credited or charged directly to a separate component of
shareholder's equity.
GOODWILL
Goodwill, which represents the excess of the purchase price over the fair
value of net assets of subsidiaries acquired, is amortized using the straight-
line method over 40 years.
PROPERTY AND EQUIPMENT
Property and equipment used in operations are carried at cost less
accumulated depreciation. Depreciation is calculated using the straight-line
method over the estimated useful lives of the assets.
FEDERAL INCOME TAXES
The Company files a consolidated federal income tax return with its parent.
Federal income tax is allocated as if the Company and its subsidiaries filed a
separate consolidated income tax return.
Deferred income tax assets and liabilities are recognized for the expected
future tax effects attributable to temporary differences between the financial
reporting and tax bases of assets and liabilities, based on enacted tax rates
and other provisions of tax law. Deferred income taxes related to unrealized
appreciation or depreciation of investments classified as available-for-sale
are charged or credited directly to a separate component of shareholder's
equity.
FAIR VALUES OF FINANCIAL INSTRUMENTS
Fair values of financial instruments are based on quoted market prices where
available. Fair values of financial instruments for which quoted market prices
are not available are based on estimates using present value or other
valuation techniques. Those techniques are significantly affected by the
assumptions used, including the discount rates and the estimates of future
cash flows. Accordingly, the derived fair value estimates cannot be
substantiated by comparison to independent markets and are not necessarily
indicative of the amounts that could be realized in immediate settlement of
the instrument. Certain financial instruments, particularly insurance
contracts, are excluded from fair value disclosure requirements.
F-8
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The methods and assumptions used to estimate the fair value of financial
instruments are as follows:
. Fair values of fixed maturities with active markets are based on quoted
market prices. For fixed maturities that trade in less active markets,
fair values are obtained from independent pricing services. Fair values
of fixed maturities are principally a function of current interest rates.
Care should be used in evaluating the significance of these estimated
market values.
. Fair values of equity securities are based on quoted market prices.
. The carrying value of short term investments approximates fair value due
to the short maturities of these investments.
. Fair values of policy loans and mortgage loans are estimated using
discounted cash flow analyses and approximate carrying values.
. The carrying value of short term debt approximates fair value due to the
short maturities of the debt.
The carrying value and fair value of financial instruments at December 31,
1996 were as follows:
<TABLE>
<CAPTION>
CARRYING FAIR
VALUE VALUE
---------- ----------
(IN THOUSANDS)
<S> <C> <C>
ASSETS
Invested assets
Fixed maturities
Held-to-maturity................................ $ 381,230 $ 398,909
Available-for-sale.............................. 2,498,281 2,498,281
Equity securities................................ 30,681 30,681
Short term investments........................... 48,333 48,333
Policy loans..................................... 217,857 217,857
Mortgage loans on real estate.................... 8,945 8,945
LIABILITIES
Loans payable..................................... 50,500 50,500
</TABLE>
CASH FLOW INFORMATION
In the statement of cash flows, short term investments are not considered to
be cash equivalents. Cash overdrafts are included in accrued expenses and
other liabilities. The overdrafts at December 31, 1996 were $19,530,000.
2. CHANGES IN ACCOUNTING PRINCIPLES
Effective January 1, 1996, the Company adopted SFAS No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of. The Statement establishes accounting standards for the impairment of long-
lived assets, certain identifiable intangibles, and goodwill related to those
assets. Under SFAS No. 121, an impairment loss is recognized if the sum of the
undiscounted expected future cash flows is less than the carrying amount of
the asset. Measurement of impairment should be based on the fair value of the
asset. The adoption of SFAS 121 did not have an impact on net income.
3. DISCONTINUED OPERATIONS
In the second quarter of 1996, the Company adopted a plan to exit the group
health insurance business. Formerly, this business was the Company's group
insurance business segment.
Marketing of traditional group health business was discontinued. Due to
various contractual and regulatory requirements, traditional group coverages
will be renewed in certain jurisdictions until an orderly transition to
another carrier or termination of coverage can occur. It is expected that the
exit from this business will be completed by the end of 1998.
F-9
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
3. DISCONTINUED OPERATIONS (CONTINUED)
Managed care products were sold through ChubbHealth, Inc. (CHI), a health
maintenance organization (HMO). CHI commenced operations in the New York City
metropolitan area on June 1, 1994. ChubbHealth Holdings, Inc. (Holdings) owned
100% of CHI and was jointly owned by the Company and Healthsource Metropolitan
New York Holding Company, Inc., formerly known as Healthsource New York, Inc.
(Healthsource). The Company owned 85% of the outstanding Stock of Holdings at
December 31, 1995.
On May 31, 1996 the Company entered into a definitive agreement to sell its
interest in CHI to Healthsource for $25,647,000 in cash. The sale was
completed effective December 31, 1996 and the cash settlement was received on
January 6, 1997.
The sale resulted in an after tax gain of approximately $15,000,000 which
was substantially offset by estimated costs relating to the exit from the
remaining group insurance business. The discontinued group insurance business
had no effect on net income after April 1, 1996. It is expected that the
discontinued group insurance business will not affect the Company's net income
significantly in the future.
The identifiable assets and liabilities of the group insurance business
included in the accompanying consolidated balance sheet at December 31, 1996,
by the respective category, were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
ASSETS
<S> <C>
Uncollected premium..................................... $ 3,742
Reinsurance recoverable on life and health policy lia-
bilities............................................... 1,753
Other assets............................................ 8,414
-------
$13,909
=======
LIABILITIES
Future policy benefits.................................. $ 9,294
Policy and contract claims.............................. 50,311
Premiums paid in advance................................ 1,047
Accrued expenses and other liabilities.................. 5,660
-------
$66,312
=======
</TABLE>
In addition to the assets and liabilities above, sufficient invested assets
were held for the payment of group insurance liabilities. It is not
practicable to segregate the specific invested assets associated with those
liabilities.
The results of discontinued operations for the three months ended March 31,
1996 included in the Consolidated Statement of Income were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Revenues.................................................. $58,902
Benefits, claims and expenses............................. 60,816
-------
Loss from operations before income tax benefit............ (1,914)
Income tax benefit........................................ (656)
-------
Loss from discontinued operations before minority interest
in subsidiary............................................ (1,258)
Minority interest in net loss of consolidated subsidiary.. (213)
-------
Loss from discontinued operations......................... $(1,045)
=======
</TABLE>
Loss before income tax benefits for discontinued operations reflect
allocations of investment income and expenses using allocation methods deemed
to be reasonable. Other acceptable allocation methods could produce different
results.
F-10
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
4. INVESTED ASSETS
The sources of net investment income from continuing operations for the year
ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Fixed maturities........................................... $215,117
Equity securities.......................................... 3,505
Short term investments..................................... 3,444
Policy loans............................................... 15,275
Mortgage loans............................................. 914
Other...................................................... 515
--------
Gross investment income.................................. 238,770
Investment expenses........................................ 2,288
--------
Net investment income.................................... $236,482
========
</TABLE>
Realized investment gains and losses for the year ended December 31, 1996
were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Gross realized investment gains
Fixed maturities......................................... $ 9,455
Equity securities........................................ 6,898
-------
$16,353
=======
Gross realized investment losses
Fixed maturities......................................... $ 1,774
Equity securities........................................ 1,992
-------
$ 3,766
=======
Net realized investment gains
Fixed maturities......................................... $ 7,681
Equity securities........................................ 4,906
-------
$12,587
=======
</TABLE>
Proceeds from the sales of fixed maturities considered available-for-sale
were $360,570,000. Gross gains of $9,455,000 and gross losses of $1,774,000
were realized on such sales in 1996.
F-11
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
4. INVESTED ASSETS (CONTINUED)
The components of unrealized appreciation (depreciation) of investments
classified as available-for-sale at December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Equity securities
Gross unrealized appreciation............................ $ 3,797
Gross unrealized depreciation............................ 323
--------
3,474
--------
Fixed maturities
Gross unrealized appreciation............................ 71,332
Gross unrealized depreciation............................ 16,499
--------
54,833
--------
58,307
--------
Deferred policy acquisition costs adjustment............... (29,414)
Value assigned purchased insurance in force adjustment..... (1,783)
--------
(31,197)
--------
27,110
Deferred tax liability, net................................ 9,488
--------
$ 17,622
========
</TABLE>
The changes in unrealized appreciation or depreciation of investments
classified as available-for-sale for the year ended December 31, 1996 were as
follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Change in unrealized appreciation of equity securities.... $ (2,405)
Change in unrealized appreciation of fixed maturities..... (47,181)
Change in deferred policy acquisition costs adjustment.... 12,436
Change in value assigned purchased insurance in force ad-
justment................................................. 1,614
--------
(35,536)
Deferred income tax credit................................ (12,438)
--------
$(23,098)
========
</TABLE>
F-12
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
4. INVESTED ASSETS (CONTINUED)
The cost of equity securities was $27,207,000 at December 31, 1996.
The amortized costs and estimated market value of fixed maturities at
December 31, 1996 were as follows:
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED MARKET
COST GAINS LOSSES VALUE
---------- ---------- ---------- ----------
(IN THOUSANDS)
<S> <C> <C> <C> <C>
HELD-TO-MATURITY
Tax exempt bonds................... $ 967 $ 27 $ $ 994
---------- ------- ------- ----------
Taxable
U.S. Government and government
agency and authority
obligations..................... 17,426 1,339 7 18,758
Corporate bonds.................. 174,817 14,339 189,156
Foreign bonds.................... 15,000 2,109 17,109
Mortgage-backed securities....... 173,020 2,208 2,336 172,892
---------- ------- ------- ----------
Total taxable...................... 380,263 19,995 2,343 397,915
---------- ------- ------- ----------
Total held-to-maturity............. 381,230 20,022 2,343 398,909
---------- ------- ------- ----------
AVAILABLE-FOR-SALE
Taxable
U.S. Government and government
agency and authority
obligations..................... 205,577 1,711 658 206,630
Corporate bonds.................. 1,170,611 34,332 10,974 1,193,969
Foreign bonds.................... 153,757 8,310 883 161,184
Mortgage-backed securities....... 911,248 26,791 3,887 934,152
Redeemable preferred stocks...... 2,255 188 97 2,346
---------- ------- ------- ----------
Total available-for-sale........... 2,443,448 71,332 16,499 2,498,281
---------- ------- ------- ----------
Total fixed maturities............. $2,824,678 $91,354 $18,842 $2,897,190
========== ======= ======= ==========
</TABLE>
The unrealized appreciation or depreciation of fixed maturities classified as
held-to-maturity are not reflected in the financial statements. The change in
net unrealized appreciation of such fixed maturities was depreciation of
$13,754,000 for the year ended December 31, 1996.
The amortized cost and estimated market value of fixed maturities at December
31, 1996 by contractual maturity were as follows:
<TABLE>
<CAPTION>
HELD-TO-MATURITY AVAILABLE-FOR-SALE
------------------- ---------------------
ESTIMATED ESTIMATED
AMORTIZED MARKET AMORTIZED MARKET
COST VALUE COST VALUE
--------- --------- ---------- ----------
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Due in one year or less.............. $ 10,026 $ 10,207 $ 10,240 $ 10,266
Due after one year through five
years............................... 63,785 68,892 257,205 266,921
Due after five years through ten
years............................... 75,743 81,875 445,479 456,299
Due after ten years.................. 58,656 65,043 819,276 830,643
-------- -------- ---------- ----------
Subtotal........................... 208,210 226,017 1,532,200 1,564,129
Mortgage-backed securities........... 173,020 172,892 911,248 934,152
-------- -------- ---------- ----------
$381,230 $398,909 $2,443,448 $2,498,281
======== ======== ========== ==========
</TABLE>
Actual maturities could differ from contractual maturities because borrowers
may have the right to call or prepay obligations with or without call or
prepayment penalties.
F-13
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
5. DEFERRED POLICY ACQUISITION COSTS AND VALUE ASSIGNED PURCHASED INSURANCE IN
FORCE
Policy acquisition costs deferred and the related amortization charged to
income for the year ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Balance, beginning of year................................ $575,614
Cost deferred during year................................. 149,481
Amortization during year.................................. (92,878)
Change in adjustment to reflect the effects of unrealized
depreciation of investments.............................. 12,436
--------
Balance, end of year...................................... $644,653
========
</TABLE>
Changes in the value assigned purchased insurance in force for the year
ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Balance, beginning of year................................ $37,095
Accrued interest.......................................... 3,094
Amortization.............................................. (7,343)
Change in adjustment to reflect the effects of unrealized
depreciation of investments.............................. 1,614
-------
Balance, end of year...................................... $34,460
=======
</TABLE>
The estimated net amortization of the value assigned purchased insurance in
force is as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Year Ending December 31:
1997..................................................... $ 3,670
1998..................................................... 3,227
1999..................................................... 2,764
2000..................................................... 2,462
2001..................................................... 2,347
Subsequent to 2001......................................... 19,990
-------
$34,460
=======
</TABLE>
6. FEDERAL INCOME TAXES
Federal income tax provisions for the year ended December 31, 1996 have been
computed using the tax rates and regulations in effect during the year. The
provision for federal income tax gives effect to permanent differences between
financial and taxable income. Accordingly, the effective tax rate is less than
the statutory federal corporate tax rate. The reasons for the lower effective
tax rate were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Tax at statutory federal income tax rate (35%)............. $26,122
Dividends received deduction and tax exempt income......... (1,441)
Amortization of goodwill................................... 394
Foreign taxes.............................................. (451)
Other...................................................... 475
-------
Federal income tax expense............................... $25,099
=======
</TABLE>
F-14
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
6. FEDERAL INCOME TAXES (CONTINUED)
The tax effects of temporary differences that gave rise to deferred income
tax liabilities and assets at December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Deferred income tax liabilities:
Deferred policy acquisition costs........................ $167,655
Value assigned purchased insurance in force.............. 19,753
Unrealized appreciation in investments................... 20,407
Other.................................................... 10,323
--------
Total.................................................. 218,138
Deferred income tax assets:
Future policy benefits and policy fund balances.......... 156,427
Postretirement benefits.................................. 8,128
--------
Total.................................................. 164,555
--------
Net deferred income tax liabilities........................ $ 53,583
========
</TABLE>
Prior to 1984, life insurance companies were allowed certain special
deductions for federal income tax purposes which could become subject to tax
at normal rates under certain circumstances, including distribution to
shareholders. These special deductions were set aside in a Policyholders'
Surplus Account. Under the 1984 Act, no further additions to this account are
permitted. At December 31, 1996, approximately $13,464,000 of untaxed retained
earnings remained. No income taxes have been provided since management does
not anticipate any transaction that would cause this remaining amount to
become taxable. The unrecognized deferred tax related to the Policyholders'
Surplus Account is $4,712,000.
Federal income taxes paid in 1996 were $29,569,000.
7. PENSIONS
In 1996, the Company's pension plans were merged into the pension plan of
the Parent. The Parent's plan covers substantially all employees. Pension
costs allocated to the Company for the year ended December 31, 1996, were
$1,500,000. The costs were offset by a net curtailment gain of $1,322,000,
resulting from workforce reductions. This gain was primarily due to the
reduction of the projected benefit obligation associated with severed
employees' pension benefits offset by the recognition of the prior service
costs related to those employees.
8. OTHER POSTRETIREMENT BENEFITS
The Company provides certain other postretirement benefits, principally
health care and life insurance, to retired employees and their beneficiaries
and covered dependents. Substantially all employees may become eligible for
these benefits upon retirement if they meet minimum age and years of service
requirements.
The Company does not fund these benefits in advance. Benefits are paid as
covered expenses are incurred. Health care coverage is contributory. Retiree
contributions vary based upon a retiree's age, type of coverage and years of
service with the Company. Life insurance coverage is noncontributory.
The components of net postretirement benefit cost for the year ended
December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Service cost of current period............................. $1,076
Interest cost on accumulated benefit obligation............ 1,613
------
Net postretirement benefit cost............................ $2,689
======
</TABLE>
F-15
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
8. OTHER POSTRETIREMENT BENEFITS (CONTINUED)
During 1996, the Company recognized a net curtailment gain of $648,000
resulting from workforce reductions. This gain is primarily due to the
reduction of the accumulated postretirement benefit obligation associated with
severed employees' other postretirement benefits.
The components of the accumulated postretirement benefit obligation at
December 31, 1996 were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Retirees.................................................. $ 9,399
Fully eligible active plan participants................... 1,001
Other active plan participants............................ 10,160
-------
Accumulated postretirement benefit obligation............. 20,560
Unrecognized net gain from past experience different from
that assumed............................................. 3,609
-------
Postretirement benefit liability included in other liabil-
ities.................................................... $24,169
=======
</TABLE>
The weighted average discount rate used in determining the actuarial present
value of the accumulated postretirement benefit obligation at December 31,
1996 was 7 3/4%. The health care cost trend rate used to measure the
accumulated postretirement cost for medical benefits is 11 3/4% for 1997. The
rate is assumed to decrease gradually to 6% for the year 2008 and remain at
that level thereafter. The health care cost trend rate assumption has a
significant effect on the amount of the accumulated postretirement benefit
obligation and the net postretirement benefit cost reported. To illustrate, a
one percent increase in the trend rate for each year would increase the
accumulated postretirement benefit obligation at December 31, 1996 by
$3,445,000 and the aggregate of the service and interest cost components of
net postretirement benefit cost for the year ended December 31, 1996 by
$451,000.
9. STOCK OWNERSHIP AND INCENTIVE PLANS
Substantially all of the Company's employees are eligible to participate in
the stock ownership and incentive plans of the Parent. The aggregate costs
associated with the plans were approximately $3,414,000 for the year ended
December 31, 1996.
10. RENT EXPENSES AND COMMITMENTS
The Company occupies office facilities under lease agreements which expire
at various dates through 2009; such leases generally are renewed or replaced
by other leases. In addition, the Company leases office and transportation
equipment.
Total rent expense charged to operations amounted to approximately
$4,708,000 for 1996. All leases are operating leases and generally contain
renewal options. At December 31, 1996, future minimum rental payments required
under noncancellable operating leases were as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Year Ending December 31:
1997..................................................... $ 3,341
1998..................................................... 2,560
1999..................................................... 1,916
2000..................................................... 1,449
2001..................................................... 1,334
Subsequent to 2001......................................... 5,715
-------
$16,315
=======
</TABLE>
F-16
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
11. REINSURANCE
The Company is involved in both the cession and assumption of reinsurance
with other insurance companies. Risks are reinsured with other companies to
permit the recovery of a portion of the direct losses. Sovereign had a
reinsurance recoverable resulting from a reinsurance agreement with a single
reinsurer of $98,716,000 at December 31, 1996. Sovereign coinsured fifty
percent of a block of single premium whole life policies under this agreement.
Sovereign and the reinsurer are joint and equal owners in securities and
short-term investments of $191,878,000 at December 31, 1996. The remaining
reinsurance recoverables were associated with numerous other reinsurers. The
maximum amount of individual life insurance retained on any one life,
including accidental death benefits, is $1,400,000.
The effect of reinsurance on the premiums and policy charges in the
consolidated statement of income for the year ended December 31, 1996 was as
follows:
<TABLE>
<CAPTION>
CEDED TO ASSUMED
DIRECT OTHER FROM OTHER NET
AMOUNT COMPANIES COMPANIES AMOUNT
-------- --------- ---------- --------
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Premiums Earned and Policy Charges for
the year:
Life Insurance....................... $335,376 $18,818 $1,607 $318,165
Accident and Health Insurance........ 28,824 9,207 19,617
-------- ------- ------ --------
Total Premiums and Policy Charges.... $364,200 $28,025 $1,607 $337,782
======== ======= ====== ========
</TABLE>
Reinsurance recoveries which have been deducted from benefits, claims and
expenses in the consolidated statement of income was $46,093,000 in 1996.
12. DIVIDEND RESTRICTIONS
The Company and its insurance subsidiaries are required to file annual
statements with state insurance regulatory authorities prepared on an
accounting basis prescribed or permitted by such authorities (statutory
basis). For such subsidiaries, GAAP differs in certain respects from statutory
accounting practices.
A comparison of shareholder's equity on a GAAP basis and policyholders'
surplus on a statutory basis at December 31, 1996 is as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
GAAP....................................................... $866,030
Statutory.................................................. 328,327
</TABLE>
A comparison of GAAP and statutory net income for the year ended December
31, 1996 is as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
GAAP....................................................... $48,491
Statutory.................................................. 33,988
</TABLE>
The amount of GAAP surplus in excess of statutory surplus is unavailable for
distribution. In addition, various state insurance laws restrict the Company
and its insurance subsidiaries as to the amount of dividends from statutory
surplus they may pay without the prior approval of regulatory authorities. The
restrictions generally are based on net gains from operations and on certain
levels of policyholders' surplus as determined in accordance with statutory
accounting practices. Dividends in excess of such thresholds are considered
"extraordinary" and require prior regulatory approval. The maximum ordinary
dividend distribution that may be made by the Company to the Parent during
1997 is approximately $32,800,000.
13. DEBT AND CREDIT ARRANGEMENTS
The Company has a loan agreement with a bank providing for a revolving line
of credit of $60,000,000 at a variable interest rate. There were $50,500,000
in borrowings against this line of credit at December 31, 1996. Interest paid
on these borrowings was $968,000 in 1996.
F-17
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
CHUBB LIFE INSURANCE COMPANY OF AMERICA AND SUBSIDIARIES
13. DEBT AND CREDIT ARRANGEMENTS (CONTINUED)
During 1996, the Company borrowed in the short term commercial paper market.
These notes were issued by Chubb Capital Corporation, a subsidiary of the
Parent. The interest rate was variable and was based on Chubb Capital
Corporation's cost of funds. The outstanding balance of commercial paper was
repaid in the fourth quarter of 1996. The agreement remains in effect at
December 31, 1996. Interest paid on the borrowings in 1996 was $1,206,000.
A mortgage loan payable, which is secured by a portion of the Company's home
office property in Concord, New Hampshire, bears interest at 11 3/8% and is
payable monthly through December 2000.
Debt maturities of the mortgage loan payable are as follows:
<TABLE>
<CAPTION>
(IN THOUSANDS)
<S> <C>
Year Ending December 31:
1997..................................................... $ 944
1998..................................................... 1,057
1999..................................................... 1,184
2000..................................................... 1,184
------
$4,369
======
</TABLE>
Interest paid on the mortgage loan in 1996 was $550,000.
14. LITIGATION
The Company is involved in pending or threatened lawsuits arising from the
normal conduct of its insurance business. Several suits have been brought
against the Company seeking both punitive and compensatory damages. Management
is of the opinion that these suits are substantially without merit, that valid
defenses exist, and that such litigation will not have a material effect on
the consolidated financial statements.
15. SUBSEQUENT EVENT RELATING TO CHANGE IN OWNERSHIP
The Company's Parent, The Chubb Corporation, entered into a definitive
agreement, dated February 23, 1997, to sell the Company to Jefferson-Pilot
Corporation for $875,000,000 in cash, subject to various closing adjustments
and other customary conditions. The sale is subject to regulatory approvals
and is expected to be completed by the end of the second quarter of 1997.
F-18
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Contractholders
Chubb Separate Account C
We have audited the accompanying statement of assets and liabilities of Chubb
Separate Account C (the "Separate Account", comprising respectively, the JPM
Treasury Money Market Division, JPM Bond Division, JPM Equity Division, JPM
Small Company Division, and JPM International Equity Division) as of December
31, 1996, and the related statements of operations and changes in net assets
for the year ended December 31, 1996 and for the period from January 3, 1995
(Commencement of Operations) to December 31, 1995. These financial statements
are the responsibility of the Separate Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of investments owned as of December 31, 1996
by correspondence with JPM Series Trust II. An audit also includes assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
divisions constituting the Chubb Separate Account C at December 31, 1996, the
results of their operations and the changes in their net assets for each of
the periods indicated above, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Boston, Massachusetts
March 14, 1997
F-19
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
CHUBB SEPARATE ACCOUNT C
DECEMBER 31, 1996
<TABLE>
<CAPTION>
JPM JPM
TREASURY JPM JPM JPM INTERNATIONAL
MONEY MARKET BOND EQUITY SMALL COMPANY EQUITY
DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C>
A S S E T S
Investments in JPM Se-
ries Trust II at cost.. $341,627 $1,640,623 $3,496,728 $1,798,085 $3,543,074
======== ========== ========== ========== ==========
Investments in JPM Se-
ries Trust II at market
value.................. $332,488 $1,639,615 $3,867,682 $1,884,131 $3,823,016
Accrued investment in-
come................... 14,545 72,416 396,054 204,000 182,187
Amounts due from (to)
JPM Series Trust II.... 15,818 130 405 (764) 365
-------- ---------- ---------- ---------- ----------
362,851 1,712,161 4,264,141 2,087,367 4,005,568
Expenses payable........ (12) (57) (138) (67) (136)
Amounts due (to) from
Chubb Life Insurance
Company of America..... (15,818) (130) (405) 764 (365)
-------- ---------- ---------- ---------- ----------
TOTAL NET ASSETS.... $347,021 $1,711,974 $4,263,598 $2,088,064 $4,005,067
======== ========== ========== ========== ==========
UNITS OUTSTANDING....... 31,902 145,282 266,050 130,645 318,930
NET ASSET VALUE PER
UNIT................... $ 10.878 $ 11.784 $ 16.026 $ 15.983 $ 12.558
</TABLE>
See notes to financial statements.
F-20
<PAGE>
STATEMENTS OF OPERATIONS
CHUBB SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
JPM
TREASURY JPM JPM
MONEY MARKET BOND EQUITY
DIVISION DIVISION DIVISION
-------------------------- -------------------------- --------------------------
PERIOD FROM PERIOD FROM PERIOD FROM
YEAR JANUARY 3,(A) YEAR JANUARY 3,(A) YEAR JANUARY 3,(A)
ENDED TO ENDED TO ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996 1995
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividend income....... $14,528 $11,800 $72,416 $17,294 $ 55,925 $ 28,445
Distributions of
realized gains....... 16 16 531 6,011 392,202 144,358
------- ------- ------- ------- -------- --------
14,544 11,816 72,947 23,305 448,127 172,803
Expenses:
Mortality and expense
risk charge.......... 1,603 746 6,172 1,070 24,143 9,552
------- ------- ------- ------- -------- --------
Net Investment
Income............. 12,941 11,070 66,775 22,235 423,984 163,251
------- ------- ------- ------- -------- --------
Gain (loss) on
investments:
Net realized gain
(loss) on
investments.......... (1,817) 1,747 (870) 1,371 67,265 1,177
Net unrealized gain
(loss) on
investments.......... (1,756) (7,383) (4,624) 3,616 176,276 194,679
------- ------- ------- ------- -------- --------
Net gain (loss) on
investments.......... (3,573) (5,636) (5,494) 4,987 243,541 195,856
------- ------- ------- ------- -------- --------
Increase in Net
Assets from
Operations......... $ 9,368 $ 5,434 $61,281 $27,222 $667,525 $359,107
======= ======= ======= ======= ======== ========
</TABLE>
- -------
(a) Commencement of operations.
See notes to financial statements.
F-21
<PAGE>
STATEMENTS OF OPERATIONS--(CONTINUED)
CHUBB SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
JPM
JPM INTERNATIONAL
SMALL COMPANY EQUITY
DIVISION DIVISION
-------------------------- --------------------------
PERIOD FROM PERIOD FROM
YEAR JANUARY 3,(A) YEAR JANUARY 3,(A)
ENDED TO ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Investment Income:
Dividend income........ $ 9,360 $ 1,591 $ 29,908 $ 32,329
Distributions of
realized gains........ 211,193 19,285 152,279 30,752
-------- ------- -------- --------
220,553 20,876 182,187 63,081
Expenses:
Mortality and expense
risk charge........... 6,703 566 18,798 6,145
-------- ------- -------- --------
Net Investment
Income.............. 213,850 20,310 163,389 56,936
-------- ------- -------- --------
Gain (loss) on
investments:
Net realized gain
(loss) on investments. 3,521 1,039 15,389 (448)
Net unrealized gain on
investments........... 82,854 3,191 206,175 73,767
-------- ------- -------- --------
Net gain on
investments........... 86,375 4,230 221,564 73,319
-------- ------- -------- --------
Increase in Net
Assets from
Operations.......... $300,225 $24,540 $384,953 $130,255
======== ======= ======== ========
</TABLE>
- -------
(a) Commencement of operations.
See notes to financial statements.
F-22
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
CHUBB SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
JPM
TREASURY JPM JPM
MONEY MARKET BOND EQUITY
DIVISION DIVISION DIVISION
-------------------------- -------------------------- --------------------------
PERIOD FROM PERIOD FROM PERIOD FROM
YEAR JANUARY 3,(A) YEAR JANUARY 3,(A) YEAR JANUARY 3,(A)
ENDED TO ENDED TO ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996 1995
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income. $ 12,941 $ 11,070 $ 66,775 $ 22,235 $ 423,984 $ 163,251
Net realized gain
(loss) on
investments.......... (1,817) 1,747 (870) 1,371 67,265 1,177
Net unrealized gain
(loss) on
investments.......... (1,756) (7,383) (4,624) 3,616 176,276 194,679
--------- -------- ---------- -------- ---------- ----------
Increase in net assets
from operations........ 9,368 5,434 61,281 27,222 667,525 359,107
Contractholder
transactions--Note D:
Transfers of net
premiums............. 277,045 (37,059) 251,428 19,429 387,274 99,189
Transfers from/to
General Account and
within Separate
Account, net......... (208,924) 310,772 1,057,013 305,525 172,368 2,596,988
Transfers of cost of
insurance............ (1,590) (661) (9,537) (2,770) (13,001) (5,338)
Transfers on account
of other
terminations......... (7,323) (41) 2,425 (42) (834) 320
--------- -------- ---------- -------- ---------- ----------
Net increase in net
assets derived from
contractholder
transactions........... 59,208 273,011 1,301,329 322,142 545,807 2,691,159
--------- -------- ---------- -------- ---------- ----------
Net increase in net
assets................. 68,576 278,445 1,362,610 349,364 1,213,332 3,050,266
Balance at beginning of
period................. 278,445 0 349,364 0 3,050,266 0
--------- -------- ---------- -------- ---------- ----------
Balance at end of
period................. $ 347,021 $278,445 $1,711,974 $349,364 $4,263,598 $3,050,266
========= ======== ========== ======== ========== ==========
</TABLE>
- -------
(a) Commencement of operations.
See notes to financial statements.
F-23
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS--(CONTINUED)
CHUBB SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
JPM
JPM INTERNATIONAL
SMALL COMPANY EQUITY
DIVISION DIVISION
-------------------------- --------------------------
PERIOD FROM PERIOD FROM
YEAR JANUARY 3,(A) YEAR JANUARY 3,(A)
ENDED TO ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income.. $ 213,850 $ 20,310 $ 163,389 $ 56,936
Net realized gain
(loss) on investments. 3,521 1,039 15,389 (448)
Net unrealized gain
(loss) on investments. 82,854 3,191 206,175 73,767
---------- -------- ---------- ----------
Increase in net assets
from operations......... 300,225 24,540 384,953 130,255
Contractholder
transactions--Note D:
Transfers of net
premiums.............. 193,946 16,998 365,133 12,554
Transfers from/to
General Account and
within Separate
Account, net.......... 1,403,000 150,812 1,380,915 1,744,480
Transfers of cost of
insurance............. (5,933) (1,986) (11,500) (4,478)
Transfers on account of
other terminations.... 6,464 (2) 2,685 70
---------- -------- ---------- ----------
Net increase in net
assets derived from
contractholder
transactions............ 1,597,477 165,822 1,737,233 1,752,626
---------- -------- ---------- ----------
Net increase in net
assets.................. 1,897,702 190,362 2,122,186 1,882,881
Balance at beginning of
period.................. 190,362 0 1,882,881 0
---------- -------- ---------- ----------
Balance at end of period. $2,088,064 $190,362 $4,005,067 $1,882,881
========== ======== ========== ==========
</TABLE>
- -------
(a) Commencement of operations.
See notes to financial statements.
F-24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CHUBB SEPARATE ACCOUNT C
DECEMBER 31, 1996
NOTE A--ORGANIZATION OF ACCOUNT
Chubb Separate Account C (the "Separate Account") is a separate account of
Chubb Life Insurance Company of America ("Chubb Life"). The Separate Account is
organized as a unit investment trust registered under the Investment Company
Act of 1940 as amended. It was established for the purpose of funding flexible
premium variable life insurance policies issued by Chubb Life and is presently
comprised of five investment divisions, each of which invests exclusively in
the corresponding portfolio of the JPM Series Trust II (the "Trust"), formerly
known as Chubb Series Trust, effective January 1, 1997, an open-end diversified
Series Management Investment Company.
NOTE B--SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investment: Investments in shares of the Trust are valued at the
net asset value per share which is calculated each day the New York Stock
Exchange is open for trading.
Investment Income: Dividend income and distributions of realized gains are
recorded on the ex-dividend date.
Investment Transactions: Purchases and sales of shares of the Trust are
recorded as of the trade date, the date the transaction is executed.
Federal Income Taxes: The operations of the Separate Account are included in
the federal income tax return of Chubb Life, which is taxed as a life insurance
company under the Internal Revenue Code. Under current law, no federal income
taxes are payable with respect to the Separate Account.
Expenses: A mortality and expense risk charge is accrued daily which will not
exceed .65% of the average net asset value of each division of the Separate
Account on an annual basis.
NOTE C--INVESTMENTS
In determining the net realized gain or loss on sales of shares of the Trust,
the cost of shares sold has been determined on an average cost basis. For
federal income tax purposes, the cost of shares owned at December 31, 1996 is
the same as for financial reporting purposes.
Following is a summary of shares of each portfolio of the Trust owned by the
respective divisions of the Separate Account and the related net asset values
at December 31, 1996.
<TABLE>
<CAPTION>
NET ASSET
VALUE
SHARES PER SHARE
------- ----------
<S> <C> <C>
JPM Treasury Money Market Portfolio......................... 32,943 $10.092941
JPM Bond Portfolio.......................................... 153,979 10.648320
JPM Equity Portfolio........................................ 282,739 13.679357
JPM Small Company Portfolio................................. 150,395 12.527895
JPM International Equity Portfolio.......................... 325,973 11.727980
</TABLE>
F-25
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
CHUBB SEPARATE ACCOUNT C
DECEMBER 31, 1996
NOTE D--CONTRACTHOLDER TRANSACTIONS
<TABLE>
<CAPTION>
FOR THE PERIOD
YEAR ENDED FROM JANUARY 3, 1995(A)
DECEMBER 31, 1996 TO DECEMBER 31, 1995
------------------ ------------------------
UNITS AMOUNT UNITS AMOUNT
------- ---------- ------------------------
<S> <C> <C> <C> <C>
JPM Treasury Money Market Division
Issuance of units................ 231,052 $2,480,672 56,145 $ 578,342
Redemptions of units............. 225,769 2,421,464 29,526 305,331
------- ---------- ---------- -------------
Net Increase................... 5,283 $ 59,208 26,619 $ 273,011
======= ========== ========== =============
JPM Bond Division
Issuance of units................ 170,414 $1,931,269 35,064 $ 376,748
Redemptions of units............. 55,202 629,940 4,994 54,606
------- ---------- ---------- -------------
Net Increase................... 115,212 $1,301,329 30,070 $ 322,142
======= ========== ========== =============
JPM Equity Division
Issuance of units................ 182,200 $2,590,095 237,990 $ 2,797,257
Redemptions of units............. 145,517 2,044,287 8,623 106,098
------- ---------- ---------- -------------
Net Increase................... 36,683 $ 545,808 229,367 $ 2,691,159
======= ========== ========== =============
JPM Small Company Division
Issuance of units................ 158,843 $2,217,721 17,337 $ 201,457
Redemptions of units............. 42,603 620,244 2,932 35,635
------- ---------- ---------- -------------
Net Increase................... 116,240 $1,597,477 14,405 $ 165,822
======= ========== ========== =============
JPM International Equity Division
Issuance of units................ 251,694 $2,918,223 175,045 $ 1,819,776
Redemptions of units............. 101,276 1,180,990 6,533 67,150
------- ---------- ---------- -------------
Net Increase................... 150,418 $1,737,233 168,512 $ 1,752,626
======= ========== ========== =============
</TABLE>
NOTE E--SUBSEQUENT EVENT
The Company's Parent, The Chubb Corporation, entered into a definitive
agreement, dated February 23, 1997, to sell the Company to Jefferson-Pilot
Corporation for $875,000,000 in cash, subject to various closing adjustments
and other customary conditions. The sale is subject to regulatory approvals and
is exported to be completed by the end of the second quarter of 1997.
(a) Commencement of operations.
F-26
<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 .42% of the aggregate average daily
net assets of the Portfolios of the Trust plus an assumed charge of .53% of
the aggregate average daily net assets to cover expenses incurred by the
Trust. The .42% 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 .95%. 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 -1.60%,
4.40%, and 10.40%, 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 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
A-1
<PAGE>
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.
A-2
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,886 11,286 1,000,000 10,595 9,995 1,000,000
2 25,830 24,931 24,451 1,000,000 22,230 21,750 1,000,000
3 39,721 39,200 38,840 1,000,000 34,985 34,625 1,000,000
4 54,308 54,863 54,623 1,000,000 48,974 48,734 1,000,000
5 69,623 72,090 71,970 1,000,000 64,309 64,189 1,000,000
6 85,704 91,047 91,047 1,000,000 81,131 81,131 1,000,000
7 102,589 111,912 111,912 1,000,000 99,573 99,573 1,000,000
8 120,319 134,878 134,848 1,000,000 119,815 119,815 1,000,000
9 138,935 160,171 160,171 1,000,000 142,031 142,031 1,000,000
10 158,481 188,065 188,065 1,000,000 166,452 166,452 1,000,000
11 179,006 218,853 218,853 1,000,000 193,319 193,319 1,000,000
12 200,556 252,813 252,813 1,000,000 222,898 222,898 1,000,000
13 223,184 290,290 290,290 1,000,000 255,486 255,486 1,000,000
14 246,943 331,653 331,653 1,000,000 291,420 291,420 1,000,000
15 271,890 377,326 377,326 1,000,000 331,062 331,062 1,000,000
16 298,084 427,795 427,795 1,000,000 374,838 374,838 1,000,000
17 325,589 483,568 483,568 1,000,000 423,197 423,197 1,000,000
18 354,468 545,229 545,229 1,000,000 476,656 476,656 1,000,000
19 384,791 613,459 613,459 1,006,072(3) 535,811 535,811 1,000,000
20 416,631 688,889 688,889 1,081,556(3) 601,337 601,337 1,000,000
25 601,361 1,200,062 1,200,062 1,608,084(3) 1,047,628 1,047,628 1,403,821(3)
30 837,129 2,032,952 2,032,952 2,480,201(3) 1,770,761 1,770,761 2,160,328(3)
35 1,138,036 3,383,683 3,383,683 3,925,073(3) 2,933,181 2,933,181 3,402,491(3)
40 1,522,077 5,582,333 5,582,333 5,973,097(3) 4,812,992 4,812,992 5,149,902(3)
45 2,012,222 9,194,185 9,194,185 9,653,894(3) 7,892,220 7,892,220 8,286,831(3)
50 2,637,785 14,991,743 14,991,743 15,741,330(3) 12,769,449 12,769,449 13,407,921(3)
55 3,436,179 24,151,501 24,151,501 25,359,076(3) 20,314,120 20,314,120 21,329,826(3)
60 4,455,155 39,077,612 39,077,612 39,468,388(3) 32,567,955 32,567,955 32,893,635(3)
65 5,755,655 64,623,297 64,623,297 64,623,297(3) 53,870,652 53,870,652 53,870,652(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.
A-3
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,886 11,286 1,000,000 10,595 9,995 1,000,000
2 25,830 24,931 24,451 1,000,000 22,230 21,750 1,000,000
3 39,721 39,200 38,840 1,000,000 34,985 34,625 1,000,000
4 54,308 54,863 54,623 1,000,000 48,974 48,734 1,000,000
5 69,623 72,090 71,970 1,000,000 64,309 64,189 1,000,000
6 85,704 91,047 91,047 1,000,000 81,131 81,131 1,000,000
7 102,589 111,912 111,912 1,000,000 99,573 99,573 1,000,000
8 120,319 134,878 134,848 1,000,000 119,815 119,815 1,000,000
9 138,935 160,171 160,171 1,000,000 142,031 142,031 1,000,000
10 158,481 188,065 188,065 1,000,000 166,452 166,452 1,000,000
11 179,006 218,853 218,853 1,000,000 193,319 193,319 1,000,000
12 200,556 252,813 252,813 1,000,000 222,898 222,898 1,000,000
13 223,184 290,290 290,290 1,000,000 255,486 255,486 1,000,000
14 246,943 331,653 331,653 1,000,000 291,420 291,420 1,000,000
15 271,890 377,310 377,310 1,041,376(3) 331,062 331,062 1,000,000
16 298,084 427,565 427,565 1,141,598(3) 374,838 374,838 1,000,816(3)
17 325,589 482,782 482,782 1,250,405(3) 422,959 422,959 1,095,465(3)
18 354,468 543,417 543,417 1,363,976(3) 475,553 475,553 1,193,637(3)
19 384,791 610,002 610,002 1,482,305(3) 533,006 533,006 1,295,206(3)
20 416,631 683,057 683,057 1,612,014(3) 595,684 595,684 1,405,814(3)
25 601,361 1,167,914 1,167,914 2,382,544(3) 1,003,906 1,003,906 2,047,968(3)
30 837,129 1,924,182 1,924,182 3,425,044(3) 1,621,754 1,621,754 2,886,721(3)
35 1,138,036 3,084,822 3,084,822 4,874,019(3) 2,535,247 2,535,247 4,005,691(3)
40 1,522,077 4,836,767 4,836,767 6,868,209(3) 3,853,594 3,853,594 5,472,104(3)
45 2,012,222 7,436,738 7,436,738 9,742,127(3) 5,694,652 5,694,652 7,459,995(3)
50 2,637,785 11,242,932 11,242,932 13,716,377(3) 8,243,012 8,243,012 10,056,475(3)
55 3,436,179 16,770,292 16,770,292 19,453,539(3) 11,716,244 11,716,244 13,590,842(3)
60 4,455,155 24,842,026 24,842,026 27,574,649(3) 16,568,904 16,568,904 18,391,484(3)
65 5,755,655 38,057,808 38,057,808 39,580,120(3) 23,377,751 23,377,751 24,312,861(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.
A-4
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETRUN: 6% (4.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ---------------------------------- ---------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ --------- ----------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,228 10,628 1,000,000 9,976 9,376 1,000,000
2 25,830 22,876 22,396 1,000,000 20,329 19,849 1,000,000
3 39,721 34,905 34,545 1,000,000 31,048 30,688 1,000,000
4 54,308 47,374 47,134 1,000,000 42,142 41,902 1,000,000
5 69,623 60,326 60,206 1,000,000 53,613 53,493 1,000,000
6 85,704 73,783 73,783 1,000,000 65,470 65,470 1,000,000
7 102,589 87,761 87,761 1,000,000 77,708 77,708 1,000,000
8 120,319 102,277 102,277 1,000,000 90,349 90,349 1,000,000
9 138,935 117,358 117,358 1,000,000 103,388 103,388 1,000,000
10 158,481 133,016 133,016 1,000,000 116,850 116,850 1,000,000
11 179,006 149,290 149,290 1,000,000 130,726 130,726 1,000,000
12 200,556 166,187 166,187 1,000,000 145,024 145,024 1,000,000
13 223,184 183,741 183,741 1,000,000 159,769 159,769 1,000,000
14 246,943 201,963 201,963 1,000,000 174,984 174,984 1,000,000
15 271,890 220,876 220,876 1,000,000 190,668 190,668 1,000,000
16 298,084 240,523 240,523 1,000,000 206,840 206,840 1,000,000
17 325,589 260,901 260,901 1,000,000 223,481 223,481 1,000,000
18 354,468 282,022 282,022 1,000,000 240,576 240,576 1,000,000
19 384,791 303,927 303,927 1,000,000 258,120 258,120 1,000,000
20 416,631 326,630 326,630 1,000,000 276,090 276,090 1,000,000
25 601,361 453,154 453,154 1,000,000 372,351 372,351 1,000,000
30 837,129 604,525 604,525 1,000,000 479,062 479,062 1,000,000
35 1,138,036 790,823 790,823 1,000,000 595,811 595,811 1,000,000
40 1,522,077 1,033,445 1,033,445 1,105,786(3) 728,262 728,262 1,000,000
45 2,012,222 1,339,393 1,339,393 1,406,362(3) 900,696 900,696 1,000,000
50 2,637,785 1,705,848 1,705,848 1,791,140(3) 1,154,733 1,154,733 1,212,470(3)
55 3,436,179 2,133,960 2,133,960 2,240,658(3) 1,445,649 1,445,649 1,517,931(3)
60 4,455,155 2,668,795 2,668,795 2,695,483(3) 1,810,926 1,810,926 1,829,035(3)
65 5,755,655 3,397,172 3,397,172 3,397,172(3) 2,325,369 2,325,369 2,325,369(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.
A-5
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ---------------------------------- ---------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ --------- ----------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,228 10,628 1,000,000 9,976 9,376 1,000,000
2 25,830 22,876 22,396 1,000,000 20,329 19,849 1,000,000
3 39,721 34,905 34,545 1,000,000 31,048 30,688 1,000,000
4 54,308 47,374 47,134 1,000,000 42,142 41,902 1,000,000
5 69,623 60,326 60,206 1,000,000 53,613 53,493 1,000,000
6 85,704 73,783 73,783 1,000,000 65,470 65,470 1,000,000
7 102,589 87,761 87,761 1,000,000 77,708 77,708 1,000,000
8 120,319 102,277 102,277 1,000,000 90,349 90,349 1,000,000
9 138,935 117,358 117,358 1,000,000 103,388 103,388 1,000,000
10 158,481 133,016 133,016 1,000,000 116,850 116,850 1,000,000
11 179,006 149,290 149,290 1,000,000 130,726 130,726 1,000,000
12 200,556 166,187 166,187 1,000,000 145,024 145,024 1,000,000
13 223,184 183,741 183,741 1,000,000 159,769 159,769 1,000,000
14 246,943 201,963 201,963 1,000,000 174,984 174,984 1,000,000
15 271,890 220,876 220,876 1,000,000 190,668 190,668 1,000,000
16 298,084 240,523 240,523 1,000,000 206,840 206,840 1,000,000
17 325,589 260,901 260,901 1,000,000 223,481 223,481 1,000,000
18 354,468 282,022 282,022 1,000,000 240,576 240,576 1,000,000
19 384,791 303,927 303,927 1,000,000 258,120 258,120 1,000,000
20 416,631 326,630 326,630 1,000,000 276,090 276,090 1,000,000
25 601,361 453,154 453,154 1,000,000 372,351 372,351 1,000,000
30 837,129 603,535 603,535 1,074,293(3) 479,062 479,062 1,000,000
35 1,138,036 775,420 775,420 1,225,163(3) 595,811 595,811 1,000,000
40 1,522,077 966,192 966,192 1,371,993(3) 726,955 726,955 1,032,276(3)
45 2,012,222 1,172,600 1,172,600 1,536,106(3) 860,826 860,826 1,127,683(3)
50 2,637,785 1,391,676 1,391,676 1,697,845(3) 992,220 992,220 1,210,508(3)
55 3,436,179 1,622,394 1,622,394 1,881,977(3) 1,117,595 1,117,595 1,296,411(3)
60 4,455,155 1,871,353 1,871,353 2,077,201(3) 1,247,560 1,247,560 1,384,792(3)
65 5,755,655 2,224,610 2,224,610 2,313,594(3) 1,384,379 1,384,379 1,439,754(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.
A-6
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 10,571 9,971 1,000,000 9,358 8,758 1,000,000
2 25,830 20,901 20,421 1,000,000 18,505 18,025 1,000,000
3 39,721 30,936 30,576 1,000,000 27,416 27,056 1,000,000
4 54,308 40,723 40,483 1,000,000 36,086 35,846 1,000,000
5 69,623 50,286 50,166 1,000,000 44,503 44,383 1,000,000
6 85,704 59,629 59,629 1,000,000 52,662 52,662 1,000,000
7 102,589 68,749 68,749 1,000,000 60,543 60,543 1,000,000
8 120,319 77,641 77,641 1,000,000 68,151 68,151 1,000,000
9 138,935 86,310 86,310 1,000,000 75,465 75,465 1,000,000
10 158,481 94,744 94,744 1,000,000 82,493 82,493 1,000,000
11 179,006 102,956 102,956 1,000,000 89,206 89,206 1,000,000
12 200,556 110,909 110,909 1,000,000 95,591 95,591 1,000,000
13 223,184 118,599 118,599 1,000,000 101,641 101,641 1,000,000
14 246,943 126,007 126,007 1,000,000 107,344 107,344 1,000,000
15 271,890 133,124 133,124 1,000,000 112,673 112,673 1,000,000
16 298,084 139,955 139,955 1,000,000 117,618 117,618 1,000,000
17 325,589 146,464 146,464 1,000,000 122,128 122,128 1,000,000
18 354,468 152,620 152,620 1,000,000 126,150 126,150 1,000,000
19 384,791 158,423 158,423 1,000,000 129,642 129,642 1,000,000
20 416,631 163,832 163,832 1,000,000 132,536 132,536 1,000,000
25 601,361 183,783 183,783 1,000,000 136,228 136,228 1,000,000
30 837,129 186,196 186,196 1,000,000 113,994 113,994 1,000,000
35 1,138,036 159,528 159,528 1,000,000 44,415 44,415 1,000,000
40 1,522,077 80,997 80,997 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.
A-7
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 10,571 9,971 1,000,000 9,358 8,758 1,000,000
2 25,830 20,901 20,421 1,000,000 18,505 18,025 1,000,000
3 39,721 30,936 30,576 1,000,000 27,416 27,056 1,000,000
4 54,308 40,723 40,483 1,000,000 36,086 35,846 1,000,000
5 69,623 50,286 50,166 1,000,000 44,503 44,383 1,000,000
6 85,704 59,629 59,629 1,000,000 52,662 52,662 1,000,000
7 102,589 68,749 68,749 1,000,000 60,543 60,543 1,000,000
8 120,319 77,641 77,641 1,000,000 68,151 68,151 1,000,000
9 138,935 86,310 86,310 1,000,000 75,465 75,465 1,000,000
10 158,481 94,744 94,744 1,000,000 82,493 82,493 1,000,000
11 179,006 102,956 102,956 1,000,000 89,206 89,206 1,000,000
12 200,556 110,909 110,909 1,000,000 95,591 95,591 1,000,000
13 223,184 118,599 118,599 1,000,000 101,641 101,641 1,000,000
14 246,943 126,007 126,007 1,000,000 107,344 107,344 1,000,000
15 271,890 133,124 133,124 1,000,000 112,673 112,673 1,000,000
16 298,084 139,955 139,955 1,000,000 117,618 117,618 1,000,000
17 325,589 146,464 146,464 1,000,000 122,128 122,128 1,000,000
18 354,468 152,620 152,620 1,000,000 126,150 126,150 1,000,000
19 384,791 158,423 158,423 1,000,000 129,642 129,642 1,000,000
20 416,631 163,832 163,832 1,000,000 132,536 132,536 1,000,000
25 601,361 183,783 183,783 1,000,000 136,228 136,228 1,000,000
30 837,129 186,196 186,196 1,000,000 113,994 113,994 1,000,000
35 1,138,036 159,528 159,528 1,000,000 44,415 44,415 1,000,000
40 1,522,077 80,997 80,997 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.
A-8
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,880 11,280 1,011,880 10,576 9,976 1,010,576
2 25,830 24,912 24,432 1,024,912 22,168 21,688 1,022,168
3 39,721 39,152 38,792 1,039,152 34,849 34,489 1,034,849
4 54,308 54,768 54,528 1,054,768 48,723 48,483 1,048,723
5 69,623 71,923 71,803 1,071,923 63,894 63,774 1,063,894
6 85,704 90,779 90,779 1,090,779 80,484 80,484 1,080,484
7 102,589 111,501 111,501 1,111,501 98,610 98,610 1,098,610
8 120,319 134,273 134,273 1,134,273 118,432 118,432 1,118,432
9 138,935 159,308 159,308 1,159,308 140,096 140,096 1,140,096
10 158,481 186,858 186,858 1,186,858 163,798 163,798 1,163,798
11 179,006 217,202 217,202 1,217,202 189,741 189,741 1,189,741
12 200,556 250,581 250,581 1,250,581 218,139 218,139 1,218,139
13 223,184 287,306 287,306 1,287,306 249,231 249,231 1,249,231
14 246,943 327,699 327,699 1,327,699 283,280 283,280 1,283,280
15 271,890 372,125 372,125 1,372,125 320,557 320,557 1,320,557
16 298,084 421,011 421,011 1,421,011 361,381 361,381 1,361,381
17 325,589 474,766 474,766 1,474,766 406,054 406,054 1,406,054
18 354,468 533,849 533,849 1,533,849 454,910 454,910 1,454,910
19 384,791 598,815 598,815 1,598,815 508,325 508,325 1,508,325
20 416,631 670,221 670,221 1,670,221 566,689 566,689 1,566,689
25 601,361 1,148,245 1,148,245 2,148,245 950,191 950,191 1,950,191
30 837,129 1,911,224 1,911,224 2,911,224 1,545,436 1,545,436 2,545,436
35 1,138,036 3,126,295 3,126,295 4,126,295 2,462,859 2,462,859 3,462,859
40 1,522,077 5,059,400 5,059,400 6,059,400 3,870,559 3,870,559 4,870,559
45 2,012,222 8,136,917 8,136,917 9,136,917 6,017,191 6,017,191 7,017,191
50 2,637,785 13,042,062 13,042,062 14,042,062 9,307,098 9,307,098 10,307,098
55 3,436,179 20,888,665 20,888,665 21,933,098(3) 14,359,916 14,359,916 15,359,916
60 4,455,155 33,510,513 33,510,513 34,510,513 22,256,727 22,256,727 23,256,727
65 5,755,655 54,068,415 54,068,415 55,068,415 33,665,063 33,665,063 34,665,063
</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.
A-9
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 12% (10.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- --------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,880 11,280 1,011,880 10,576 9,976 1,010,576
2 25,830 24,912 24,432 1,024,912 22,168 21,688 1,022,168
3 39,721 39,152 38,792 1,039,152 34,849 34,489 1,034,849
4 54,308 54,768 54,528 1,054,768 48,723 48,483 1,048,723
5 69,623 71,923 71,803 1,071,923 63,894 63,774 1,063,894
6 85,704 90,779 90,779 1,090,779 80,484 80,484 1,080,484
7 102,589 111,501 111,501 1,111,501 98,610 98,610 1,098,610
8 120,319 134,273 134,273 1,134,273 118,432 118,432 1,118,432
9 138,935 159,308 159,308 1,159,308 140,096 140,096 1,140,096
10 158,481 186,858 186,858 1,186,858 163,798 163,798 1,163,798
11 179,006 217,202 217,202 1,217,202 189,741 189,741 1,189,741
12 200,556 250,581 250,581 1,250,581 218,139 218,139 1,218,139
13 223,184 287,306 287,306 1,287,306 249,231 249,231 1,249,231
14 246,943 327,699 327,699 1,327,699 283,280 283,280 1,283,280
15 271,890 372,125 372,125 1,372,125 320,557 320,557 1,320,557
16 298,084 421,011 421,011 1,421,011 361,381 361,381 1,361,381
17 325,589 474,766 474,766 1,474,766 406,054 406,054 1,406,054
18 354,468 533,849 533,849 1,533,849 454,910 454,910 1,454,910
19 384,791 598,815 598,815 1,598,815 508,325 508,325 1,508,325
20 416,631 670,221 670,221 1,670,221 566,689 566,689 1,566,689
25 601,361 1,146,578 1,146,578 2,339,020(3) 950,191 950,191 1,950,191
30 837,129 1,890,363 1,890,363 3,364,847(3) 1,538,356 1,538,356 2,738,273(3)
35 1,138,036 3,031,876 3,031,876 4,790,364(3) 2,408,523 2,408,523 3,805,466(3)
40 1,522,077 4,754,982 4,754,982 6,752,075(3) 3,664,477 3,664,477 5,203,557(3)
45 2,012,222 7,312,192 7,312,192 9,578,972(3) 5,418,579 5,418,579 7,098,338(3)
50 2,637,785 11,055,822 11,055,822 13,488,103(3) 7,846,713 7,846,713 9,572,990(3)
55 3,436,179 16,492,359 16,492,359 19,131,136(3) 11,156,222 11,156,222 12,941,217(3)
60 4,455,155 24,431,476 24,431,476 27,118,939(3) 15,780,170 15,780,170 17,515,988(3)
65 5,755,655 37,430,034 37,430,034 38,927,236(3) 22,115,986 22,115,986 23,115,986
</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.
A-10
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,223 10,623 1,011,223 9,958 9,358 1,009,958
2 25,830 22,859 22,379 1,022,859 20,273 19,793 1,020,273
3 39,721 34,863 34,503 1,034,863 30,929 30,569 1,030,929
4 54,308 47,294 57,054 1,047,294 41,932 41,692 1,041,932
5 69,623 60,190 60,070 1,060,190 53,276 53,156 1,053,276
6 85,704 73,572 73,572 1,073,572 64,967 64,967 1,064,967
7 102,589 87,451 87,451 1,087,451 76,988 76,988 1,076,988
8 120,319 101,839 101,839 1,101,839 89,355 89,355 1,089,355
9 138,935 116,758 116,758 1,116,758 102,051 102,051 1,102,051
10 158,481 132,211 132,211 1,132,211 115,093 115,093 1,115,093
11 179,006 148,232 148,232 1,148,232 128,453 128,453 1,128,453
12 200,556 164,814 164,814 1,164,814 142,126 142,126 1,142,126
13 223,184 181,977 181,977 1,181,977 156,115 156,115 1,156,115
14 246,943 199,719 199,719 1,199,719 170,425 170,425 1,170,425
15 271,890 218,044 218,044 1,218,044 185,029 185,029 1,185,029
16 298,084 236,979 236,979 1,236,979 199,922 199,922 1,199,922
17 325,589 256,491 256,491 1,256,491 215,044 215,044 1,215,044
18 354,468 276,556 276,556 1,276,556 230,336 230,336 1,230,336
19 384,791 297,188 297,188 1,297,188 245,743 245,743 1,245,743
20 416,631 318,351 318,351 1,318,351 261,179 261,179 1,261,179
25 601,361 431,110 431,110 1,431,110 336,198 336,198 1,336,198
30 837,129 548,655 548,655 1,548,655 396,456 396,456 1,396,456
35 1,138,036 655,770 655,770 1,655,770 414,041 414,041 1,414,041
40 1,522,077 724,166 724,166 1,724,166 340,766 340,766 1,340,766
45 2,012,222 705,886 705,886 1,705,886 90,318 90,318 1,090,318
50 2,637,785 519,665 519,665 1,519,665 0 0 0
55 3,436,179 44,135 44,135 1,044,135 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.
A-11
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 6% (4.40% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED -------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFIT(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- ---------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 11,223 10,623 1,011,223 9,958 9,358 1,009,958
2 25,830 22,859 22,379 1,022,859 20,273 19,793 1,020,273
3 39,721 34,863 34,503 1,034,863 30,929 30,569 1,030,929
4 54,308 47,294 47,054 1,047,294 41,932 41,692 1,041,932
5 69,623 60,190 60,070 1,060,190 53,276 53,156 1,053,276
6 85,704 73,572 73,572 1,073,572 64,967 64,967 1,064,967
7 102,589 87,451 87,451 1,087,451 76,988 76,988 1,076,988
8 120,319 101,839 101,839 1,101,839 89,355 89,355 1,089,355
9 138,935 116,758 116,758 1,116,758 102,051 102,051 1,102,051
10 158,481 132,211 132,211 1,132,211 115,093 115,093 1,115,093
11 179,006 148,232 148,232 1,148,232 128,453 128,453 1,128,453
12 200,556 164,814 164,814 1,164,814 142,126 142,126 1,142,126
13 223,184 181,977 181,977 1,181,977 156,115 156,115 1,156,115
14 246,943 199,719 199,719 1,199,719 170,425 170,425 1,170,425
15 271,890 218,044 218,044 1,218,044 185,029 185,029 1,185,029
16 298,084 236,979 236,979 1,236,979 199,922 199,922 1,199,922
17 325,589 256,491 256,491 1,256,491 215,044 215,044 1,215,044
18 354,468 276,556 276,556 1,276,556 230,336 230,336 1,230,336
19 384,791 297,188 297,188 1,297,188 245,743 245,743 1,245,743
20 416,631 318,351 318,351 1,318,351 261,179 261,179 1,261,179
25 601,361 431,110 431,110 1,431,110 336,198 336,198 1,336,198
30 837,129 548,655 548,655 1,548,655 396,456 396,456 1,396,456
35 1,138,036 655,770 655,770 1,655,770 414,041 414,041 1,414,041
40 1,522,077 724,166 724,166 1,724,166 340,766 340,766 1,340,766
45 2,012,222 705,886 705,886 1,705,886 90,318 90,318 1,090,318
50 2,637,785 519,665 519,665 1,519,665 0 0 0
55 3,436,179 44,135 44,135 1,044,135 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.
A-12
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 10,566 9,966 1,010,566 9,341 8,741 1,009,341
2 25,830 20,885 20,405 1,020,885 18,454 17,974 1,018,454
3 39,721 30,899 30,539 1,030,899 27,312 26,952 1,027,312
4 54,308 40,655 40,415 1,040,655 35,910 35,670 1,035,910
5 69,623 50,176 50,056 1,050,176 44,232 44,112 1,044,232
6 85,704 59,465 59,465 1,059,465 52,273 52,273 1,052,273
7 102,589 68,517 68,517 1,068,517 60,008 60,008 1,060,008
8 120,319 77,326 77,326 1,077,326 67,441 67,441 1,067,441
9 138,935 85,894 85,894 1,085,894 74,548 74,548 1,074,548
10 158,481 94,207 94,207 1,094,207 81,333 81,333 1,081,333
11 179,006 102,279 102,279 1,102,279 87,764 87,764 1,087,764
12 200,556 110,063 110,063 1,110,063 93,824 93,824 1,093,824
13 223,184 117,555 117,555 1,117,555 99,502 99,502 1,099,502
14 246,943 124,729 124,729 1,124,729 104,782 104,782 1,104,782
15 271,890 131,572 131,572 1,131,572 109,632 109,632 1,109,632
16 298,084 138,088 138,088 1,138,088 114,039 114,039 1,114,039
17 325,589 144,226 144,226 1,144,226 117,942 117,942 1,117,942
18 354,468 149,950 149,950 1,149,950 121,278 121,278 1,121,278
19 384,791 155,254 155,254 1,155,254 123,998 123,998 1,123,998
20 416,631 160,087 160,087 1,160,087 126,022 126,022 1,126,022
25 601,361 175,634 175,634 1,175,634 123,687 123,687 1,123,687
30 837,129 169,737 169,737 1,169,737 92,440 92,440 1,092,440
35 1,138,036 129,633 129,633 1,129,633 13,565 13,565 1,013,565
40 1,522,077 35,673 35,673 1,035,673 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.
A-13
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 35 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
$1,000,000 INITIAL SPECIFIED AMOUNT
ASSUMED ANNUAL PREMIUM (1): $12,000
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 10,566 9,966 1,010,566 9,341 8,741 1,009,341
2 25,830 20,885 20,405 1,020,885 18,454 17,974 1,018,454
3 39,721 30,899 30,539 1,030,899 27,312 26,952 1,027,312
4 54,308 40,655 40,415 1,040,655 35,910 35,670 1,035,910
5 69,623 50,176 50,056 1,050,176 44,232 44,112 1,044,232
6 85,704 59,465 59,465 1,059,465 52,273 52,273 1,052,273
7 102,589 68,517 68,517 1,068,517 60,008 60,008 1,060,008
8 120,319 77,326 77,326 1,077,326 67,441 67,441 1,067,441
9 138,935 85,894 85,894 1,085,894 74,548 74,548 1,074,548
10 158,481 94,207 94,207 1,094,207 81,333 81,333 1,081,333
11 179,006 102,279 102,279 1,102,279 87,764 87,764 1,087,764
12 200,556 110,063 110,063 1,110,063 93,824 93,824 1,093,824
13 223,184 117,555 117,555 1,117,555 99,502 99,502 1,099,502
14 246,943 124,729 124,729 1,124,729 104,782 104,782 1,104,782
15 271,890 131,572 131,572 1,131,572 109,632 109,632 1,109,632
16 298,084 138,088 138,088 1,138,088 114,039 114,039 1,114,039
17 325,589 144,226 144,226 1,144,226 117,942 117,942 1,117,942
18 354,468 149,950 149,950 1,149,950 121,278 121,278 1,121,278
19 384,791 155,254 155,254 1,155,254 123,998 123,998 1,123,998
20 416,631 160,087 160,087 1,160,087 126,022 126,022 1,126,022
25 601,361 175,634 175,634 1,175,634 123,687 123,687 1,123,687
30 837,129 169,737 169,737 1,169,737 92,440 92,440 1,092,440
35 1,138,036 129,633 129,633 1,129,633 13,565 13,565 1,013,565
40 1,522,077 35,673 35,673 1,035,673 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.
A-14
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 12% (10.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 16,469 15,669 2,000,000 16,465 15,665 2,000,000
2 34,400 34,643 34,003 2,000,000 34,626 33,986 2,000,000
3 52,962 54,700 54,220 2,000,000 54,657 54,177 2,000,000
4 72,410 76,834 76,514 2,000,000 76,749 76,429 2,000,000
5 92,831 101,258 101,098 2,000,000 101,112 100,952 2,000,000
6 114,272 128,209 128,209 2,000,000 127,978 127,978 2,000,000
7 136,786 157,946 157,946 2,000,000 157,600 157,600 2,000,000
8 160,425 190,760 190,760 2,000,000 190,261 190,261 2,000,000
9 185,246 227,018 227,018 2,000,000 226,321 226,321 2,000,000
10 211,309 267,079 267,079 2,000,000 266,133 266,133 2,000,000
11 238,674 311,344 311,344 2,000,000 310,087 310,087 2,000,000
12 267,408 360,252 360,252 2,000,000 358,610 358,610 2,000,000
13 297,578 414,288 414,288 2,000,000 412,176 412,176 2,000,000
14 329,257 473,991 473,991 2,000,000 471,307 471,307 2,000,000
15 362,520 539,953 539,953 2,000,000 536,582 536,582 2,000,000
16 397,446 612,832 612,832 2,000,000 608,640 608,640 2,000,000
17 434,118 693,355 693,355 2,000,000 688,189 688,189 2,000,000
18 472,624 782,328 782,328 2,000,000 776,019 776,019 2,000,000
19 513,055 880,642 880,642 2,000,000 873,004 873,004 2,000,000
20 555,508 989,288 989,288 2,000,000 980,120 980,120 2,000,000
25 801,815 1,730,426 1,730,426 2,318,771(3) 1,710,410 1,710,410 2,291,949(3)
30 1,116,173 2,950,957 2,950,957 3,600,167(3) 2,909,217 2,909,217 3,549,245(3)
35 1,517,381 4,953,791 4,953,791 5,746,398(3) 4,862,276 4,862,276 5,640,240(3)
40 2,029,436 8,237,310 8,237,310 8,813,922(3) 8,041,506 8,041,506 8,604,411(3)
45 2,682,963 13,627,980 13,627,980 14,309,379(3) 13,239,104 13,239,104 13,901,059(3)
50 3,517,046 22,340,730 22,340,730 23,457,766(3) 21,521,053 21,521,053 22,597,105(3)
55 4,581,572 36,208,307 36,208,307 38,018,722(3) 34,396,691 34,396,691 36,116,525(3)
60 5,940,206 58,830,352 58,830,352 59,418,655(3) 55,184,137 55,184,137 55,735,979(3)
65 7,674,207 97,276,069 97,276,069 97,276,069(3) 91,253,256 91,253,256 91,253,256(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.
A-15
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVORFLEXIBLE PREMIUM VARIABLE LIFE
INSURANCE POLICY
DEATH BENEFIT OPTION I;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 12% (10.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 16,469 15,669 2,000,000 16,465 15,665 2,000,000
2 34,400 34,643 34,003 2,000,000 34,626 33,986 2,000,000
3 52,962 54,700 54,220 2,000,000 54,657 54,177 2,000,000
4 72,410 76,834 76,514 2,000,000 76,749 76,429 2,000,000
5 92,831 101,258 101,098 2,000,000 101,112 100,952 2,000,000
6 114,272 128,209 128,209 2,000,000 127,978 127,978 2,000,000
7 136,786 157,946 157,946 2,000,000 157,600 157,600 2,000,000
8 160,425 190,760 190,760 2,000,000 190,261 190,261 2,000,000
9 185,246 227,018 227,018 2,000,000 226,321 226,321 2,000,000
10 211,309 267,079 267,079 2,000,000 266,133 266,133 2,000,000
11 238,674 311,344 311,344 2,000,000 310,087 310,087 2,000,000
12 267,408 360,252 360,252 2,000,000 358,610 358,610 2,000,000
13 297,578 414,288 414,288 2,000,000 412,176 412,176 2,000,000
14 329,257 473,991 473,991 2,000,000 471,307 471,307 2,000,000
15 362,520 539,953 539,953 2,000,000 536,582 536,582 2,000,000
16 397,446 612,828 612,828 2,089,745(3) 608,634 608,634 2,075,441(3)
17 434,118 693,304 693,304 2,274,038(3) 688,086 688,086 2,256,922(3)
18 472,624 782,147 782,147 2,471,585(3) 775,635 775,635 2,451,007(3)
19 513,055 880,204 880,204 2,684,622(3) 872,056 872,056 2,659,769(3)
20 555,508 988,412 988,412 2,896,048(3) 978,209 978,209 2,866,153(3)
25 801,815 1,721,034 1,721,034 4,199,323(3) 1,689,859 1,689,859 4,123,255(3)
30 1,116,173 2,908,061 2,908,061 5,961,524(3) 2,817,166 2,817,166 5,775,190(3)
35 1,517,381 4,805,031 4,805,031 8,408,804(3) 4,552,858 4,552,858 7,967,502(3)
40 2,029,436 7,780,471 7,780,471 11,826,316(3) 7,137,450 7,137,450 10,848,924(3)
45 2,682,963 12,316,737 12,316,737 16,750,763(3) 10,813,142 10,813,142 14,705,873(3)
50 3,517,046 19,017,552 19,017,552 23,771,940(3) 15,863,525 15,863,525 19,829,407(3)
55 4,581,572 28,828,828 28,828,828 33,729,729(3) 22,713,082 22,713,082 26,574,306(3)
60 5,940,206 43,544,889 43,544,889 48,334,827(3) 32,126,761 32,126,761 35,660,705(3)
65 7,674,207 67,577,307 67,577,307 70,280,399(3) 45,168,488 45,168,488 46,975,228(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 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.
A-16
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE
INSURANCE POLICY
DEATH BENEFIT OPTION I;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 6% (4.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ---------------------------------- ---------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ --------- ----------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 15,574 14,774 2,000,000 15,570 14,770 2,000,000
2 34,400 31,826 31,186 2,000,000 31,809 31,169 2,000,000
3 52,962 48,785 48,305 2,000,000 48,745 48,265 2,000,000
4 72,410 66,482 66,162 2,000,000 66,404 66,084 2,000,000
5 92,831 84,947 84,787 2,000,000 84,814 84,654 2,000,000
6 114,272 104,210 104,210 2,000,000 104,002 104,002 2,000,000
7 136,786 124,305 124,305 2,000,000 123,998 123,998 2,000,000
8 160,425 145,266 145,266 2,000,000 144,830 144,830 2,000,000
9 185,246 167,127 167,127 2,000,000 166,528 166,528 2,000,000
10 211,309 189,941 189,941 2,000,000 189,137 189,137 2,000,000
11 238,674 213,765 213,765 2,000,000 212,709 212,709 2,000,000
12 267,408 238,639 238,639 2,000,000 237,276 237,276 2,000,000
13 297,578 264,606 264,606 2,000,000 262,869 262,869 2,000,000
14 329,257 291,709 291,709 2,000,000 289,519 289,519 2,000,000
15 362,520 319,991 319,991 2,000,000 317,258 317,258 2,000,000
16 397,446 349,496 349,496 2,000,000 346,111 346,111 2,000,000
17 434,118 380,269 380,269 2,000,000 376,107 376,107 2,000,000
18 472,624 412,357 412,357 2,000,000 407,272 407,272 2,000,000
19 513,055 445,805 445,805 2,000,000 439,627 439,627 2,000,000
20 555,508 480,660 480,660 2,000,000 473,194 473,194 2,000,000
25 801,815 677,743 677,743 2,000,000 659,827 659,827 2,000,000
30 1,116,173 917,270 917,270 2,000,000 878,241 878,241 2,000,000
35 1,517,381 1,205,336 1,205,336 2,000,000 1,125,477 1,125,477 2,000,000
40 2,029,436 1,553,246 1,553,246 2,000,000 1,401,799 1,401,799 2,000,000
45 2,682,963 1,994,847 1,994,847 2,094,590(3) 1,727,469 1,727,469 2,000,000
50 3,517,046 2,545,818 2,545,818 2,673,109(3) 2,180,716 2,180,716 2,289,752(3)
55 4,581,572 3,195,155 3,195,155 3,354,913(3) 2,710,811 2,710,811 2,846,351(3)
60 5,940,206 4,003,263 4,003,263 4,043,296(3) 3,366,353 3,366,353 3,400,017(3)
65 7,674,207 5,085,578 5,085,578 5,085,578(3) 4,289,836 4,289,836 4,289,836(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.
A-17
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 6% (4.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ---------------------------------- ---------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ --------- ----------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 15,574 14,774 2,000,000 15,570 14,770 2,000,000
2 34,400 31,826 31,186 2,000,000 31,809 31,169 2,000,000
3 52,962 48,785 48,305 2,000,000 48,745 48,265 2,000,000
4 72,410 66,482 66,162 2,000,000 66,404 66,084 2,000,000
5 92,831 84,947 84,787 2,000,000 84,814 84,654 2,000,000
6 114,272 104,210 104,210 2,000,000 104,002 104,002 2,000,000
7 136,786 124,305 124,305 2,000,000 123,998 123,998 2,000,000
8 160,425 145,266 145,266 2,000,000 144,830 144,830 2,000,000
9 185,246 167,127 167,127 2,000,000 166,528 166,528 2,000,000
10 211,309 189,941 189,941 2,000,000 189,137 189,137 2,000,000
11 238,674 213,765 213,765 2,000,000 212,709 212,709 2,000,000
12 267,408 238,639 238,639 2,000,000 237,276 237,276 2,000,000
13 297,578 264,606 264,606 2,000,000 262,869 262,869 2,000,000
14 329,257 291,709 291,709 2,000,000 289,519 289,519 2,000,000
15 362,520 319,991 319,991 2,000,000 317,258 317,258 2,000,000
16 397,446 349,496 349,496 2,000,000 346,111 346,111 2,000,000
17 434,118 380,269 380,269 2,000,000 376,107 376,107 2,000,000
18 472,624 412,357 412,357 2,000,000 407,272 407,272 2,000,000
19 513,055 445,805 445,805 2,000,000 439,627 439,627 2,000,000
20 555,508 480,660 480,660 2,000,000 473,194 473,194 2,000,000
25 801,815 677,743 677,743 2,000,000 659,827 659,827 2,000,000
30 1,116,173 917,270 917,270 2,000,000 878,241 878,241 2,000,000
35 1,517,381 1,204,740 1,204,740 2,108,295(3) 1,125,477 1,125,477 2,000,000
40 2,029,436 1,539,143 1,539,143 2,339,497(3) 1,396,323 1,396,323 2,122,411(3)
45 2,682,963 1,909,714 1,909,714 2,597,211(3) 1,665,151 1,665,151 2,264,605(3)
50 3,517,046 2,299,279 2,299,279 2,874,098(3) 1,914,593 1,914,593 2,393,241(3)
55 4,581,572 2,707,126 2,707,126 3,167,337(3) 2,141,762 2,141,762 2,505,862(3)
60 5,940,206 3,165,545 3,165,545 3,513,755(3) 2,361,150 2,361,150 2,620,876(3)
65 7,674,207 3,791,568 3,791,568 3,943,231(3) 2,581,702 2,581,702 2,684,970(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.
A-18
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION I;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 14,678 13,878 2,000,000 14,675 13,875 2,000,000
2 34,400 29,116 28,476 2,000,000 29,100 28,460 2,000,000
3 52,962 43,314 42,834 2,000,000 43,276 42,796 2,000,000
4 72,410 57,277 56,957 2,000,000 57,204 56,884 2,000,000
5 92,831 71,006 70,846 2,000,000 70,885 70,725 2,000,000
6 114,272 84,501 84,501 2,000,000 84,315 84,315 2,000,000
7 136,786 97,765 97,765 2,000,000 97,493 97,493 2,000,000
8 160,425 110,798 110,798 2,000,000 110,417 110,417 2,000,000
9 185,246 123,601 123,601 2,000,000 123,084 123,084 2,000,000
10 211,309 136,173 136,173 2,000,000 135,488 135,488 2,000,000
11 238,674 148,515 148,515 2,000,000 147,625 147,625 2,000,000
12 267,408 160,623 160,623 2,000,000 159,486 159,486 2,000,000
13 297,578 172,501 172,501 2,000,000 171,064 171,064 2,000,000
14 329,257 184,157 184,157 2,000,000 182,358 182,358 2,000,000
15 362,520 195,584 195,584 2,000,000 193,352 193,352 2,000,000
16 397,446 206,774 206,774 2,000,000 204,023 204,023 2,000,000
17 434,118 217,715 217,715 2,000,000 214,345 214,345 2,000,000
18 472,624 228,399 228,399 2,000,000 224,292 224,292 2,000,000
19 513,055 238,809 238,809 2,000,000 233,824 233,824 2,000,000
20 555,508 248,927 248,927 2,000,000 242,903 242,903 2,000,000
25 801,815 294,312 294,312 2,000,000 279,587 279,587 2,000,000
30 1,116,173 327,034 327,034 2,000,000 293,094 293,094 2,000,000
35 1,517,381 335,245 335,245 2,000,000 257,334 257,334 2,000,000
40 2,029,436 292,343 292,343 2,000,000 115,553 115,553 2,000,000
45 2,682,963 130,054 130,054 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.
A-19
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE
INSURANCE POLICY
DEATH BENEFIT OPTION I;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 14,678 13,878 2,000,000 14,675 13,875 2,000,000
2 34,400 29,116 28,476 2,000,000 29,100 28,460 2,000,000
3 52,962 43,314 42,834 2,000,000 43,276 42,796 2,000,000
4 72,410 57,277 56,957 2,000,000 57,204 56,884 2,000,000
5 92,831 71,006 70,846 2,000,000 70,885 70,725 2,000,000
6 114,272 84,501 84,501 2,000,000 84,315 84,315 2,000,000
7 136,786 97,765 97,765 2,000,000 97,493 97,493 2,000,000
8 160,425 110,798 110,798 2,000,000 110,417 110,417 2,000,000
9 185,246 123,601 123,601 2,000,000 123,084 123,084 2,000,000
10 211,309 136,173 136,173 2,000,000 135,488 135,488 2,000,000
11 238,674 148,515 148,515 2,000,000 147,625 147,625 2,000,000
12 267,408 160,623 160,623 2,000,000 159,486 159,486 2,000,000
13 297,578 172,501 172,501 2,000,000 171,064 171,064 2,000,000
14 329,257 184,157 184,157 2,000,000 182,358 182,358 2,000,000
15 362,520 195,584 195,584 2,000,000 193,352 193,352 2,000,000
16 397,446 206,774 206,774 2,000,000 204,023 204,023 2,000,000
17 434,118 217,715 217,715 2,000,000 214,345 214,345 2,000,000
18 472,624 228,399 228,399 2,000,000 224,292 224,292 2,000,000
19 513,055 238,809 238,809 2,000,000 233,824 233,824 2,000,000
20 555,508 248,927 248,927 2,000,000 242,903 242,903 2,000,000
25 801,815 294,312 294,312 2,000,000 279,587 279,587 2,000,000
30 1,116,173 327,034 327,034 2,000,000 293,094 293,094 2,000,000
35 1,517,381 335,245 335,245 2,000,000 257,334 257,334 2,000,000
40 2,029,436 292,343 292,343 2,000,000 115,553 115,553 2,000,000
45 2,682,963 130,054 130,054 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.
A-20
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 12% (10.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 16,469 15,669 2,016,469 16,465 15,665 2,016,465
2 34,400 34,643 34,003 2,034,643 34,625 33,985 2,034,625
3 52,962 54,700 54,220 2,054,700 54,655 54,175 2,054,655
4 72,410 76,832 76,512 2,076,832 76,745 76,425 2,076,745
5 92,831 101,254 101,094 2,101,254 101,103 100,943 2,101,103
6 114,272 128,201 128,201 2,128,201 127,960 127,960 2,127,960
7 136,786 157,933 157,933 2,157,933 157,567 157,567 2,157,567
8 160,425 190,736 190,736 2,190,736 190,204 190,204 2,190,204
9 185,246 226,978 226,978 2,226,978 226,229 226,229 2,226,229
10 211,309 267,017 267,017 2,267,017 265,987 265,987 2,265,987
11 238,674 311,248 311,248 2,311,248 309,861 309,861 2,309,861
12 267,408 360,106 360,106 2,360,106 358,270 358,270 2,358,270
13 297,578 414,072 414,072 2,414,072 411,674 411,674 2,411,674
14 329,257 473,676 473,676 2,473,676 470,576 470,576 2,470,576
15 362,520 539,500 539,500 2,539,500 535,531 535,531 2,535,531
16 397,446 612,186 612,186 2,612,186 607,145 607,145 2,607,145
17 434,118 692,442 692,442 2,692,442 686,084 686,084 2,686,084
18 472,624 781,049 781,049 2,781,049 773,077 773,077 2,773,077
19 513,055 878,862 878,862 2,878,862 868,921 868,921 2,868,921
20 555,508 986,827 986,827 2,986,827 974,491 974,491 2,974,491
25 801,815 1,719,233 1,719,233 3,719,233 1,685,170 1,685,170 3,685,170
30 1,116,173 2,914,160 2,914,160 4,914,160 2,827,322 2,827,322 4,827,322
35 1,517,381 4,852,961 4,852,961 6,852,961 4,641,162 4,641,162 6,641,162
40 2,029,436 7,978,376 7,978,376 9,978,376 7,487,794 7,487,794 9,487,794
45 2,682,963 12,972,531 12,972,531 14,972,531 11,889,102 11,889,102 13,889,102
50 3,517,046 20,892,352 20,892,352 22,892,352 18,643,560 18,643,560 20,643,560
55 4,581,572 33,474,364 33,474,364 35,474,364 29,013,332 29,013,332 31,013,332
60 5,940,206 53,668,533 53,668,533 55,668,533 45,022,236 45,022,236 47,022,236
65 7,674,207 86,427,333 86,427,333 88,427,333 68,017,463 68,017,463 70,017,463
</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.
A-21
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 12% (10.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ----------------------------------- ----------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ ---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 16,469 15,669 2,016,469 16,465 15,665 2,016,465
2 34,400 34,643 34,003 2,034,643 34,625 33,985 2,034,625
3 52,962 54,700 54,220 2,054,700 54,655 54,175 2,054,655
4 72,410 76,832 76,512 2,076,832 76,745 76,425 2,076,745
5 92,831 101,254 101,094 2,101,254 101,103 100,943 2,101,103
6 114,272 128,201 128,201 2,128,201 127,960 127,960 2,127,960
7 136,786 157,933 157,933 2,157,933 157,567 157,567 2,157,567
8 160,425 190,736 190,736 2,190,736 190,204 190,204 2,190,204
9 185,246 226,978 226,978 2,226,978 226,229 226,229 2,226,229
10 211,309 267,017 267,017 2,267,017 265,987 265,987 2,265,987
11 238,674 311,248 311,248 2,311,248 309,861 309,861 2,309,861
12 267,408 360,106 360,106 2,360,106 358,270 358,270 2,358,270
13 297,578 414,072 414,072 2,414,072 411,674 411,674 2,411,674
14 329,257 473,676 473,676 2,473,676 470,576 470,576 2,470,576
15 362,520 539,500 539,500 2,539,500 535,531 535,531 2,535,531
16 397,446 612,186 612,186 2,612,186 607,145 607,145 2,607,145
17 434,118 692,442 692,442 2,692,442 686,084 686,084 2,686,084
18 472,624 781,049 781,049 2,781,049 773,077 773,077 2,773,077
19 513,055 878,862 878,862 2,878,862 868,921 868,921 2,868,921
20 555,508 986,827 986,827 2,986,827 974,491 974,491 2,974,491
25 801,815 1,718,338 1,718,338 4,192,746(3) 1,683,516 1,683,516 4,107,778(3)
30 1,116,173 2,903,661 2,903,661 5,952,506(3) 2,806,961 2,806,961 5,754,270(3)
35 1,517,381 4,797,912 4,797,912 8,396,346(3) 4,536,719 4,536,719 7,939,258(3)
40 2,029,436 7,769,088 7,769,088 11,809,014(3) 7,112,488 7,112,488 10,810,981(3)
45 2,682,963 12,298,859 12,298,859 16,726,449(3) 10,775,654 10,775,654 14,654,889(3)
50 3,517,046 18,990,086 18,990,086 23,737,608(3) 15,808,847 15,808,847 19,761,059(3)
55 4,581,572 28,787,330 28,787,330 33,681,176(3) 22,635,110 22,635,110 26,483,078(3)
60 5,940,206 43,482,343 43,482,343 48,265,401(3) 32,016,783 32,016,783 35,538,629(3)
65 7,674,207 67,480,381 67,480,381 70,179,596(3) 44,735,584 44,735,584 46,735,584
</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.
A-22
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 6% (4.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ---------------------------------- ---------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ --------- ----------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 15,574 14,774 2,015,574 15,570 14,770 2,015,570
2 34,400 31,826 31,186 2,031,826 31,809 31,169 2,031,809
3 52,962 48,785 48,305 2,048,785 48,743 48,263 2,048,743
4 72,410 66,481 66,161 2,066,481 66,400 66,080 2,066,400
5 92,831 84,943 84,783 2,084,943 84,806 84,646 2,084,806
6 114,272 104,204 104,204 2,104,204 103,988 103,988 2,103,988
7 136,786 124,294 124,294 2,124,294 123,973 123,973 2,123,973
8 160,425 145,248 145,248 2,145,248 144,789 144,789 2,144,789
9 185,246 167,099 167,099 2,167,099 166,463 166,463 2,166,463
10 211,309 189,898 189,898 2,189,898 189,037 189,037 2,189,037
11 238,674 213,701 213,701 2,213,701 212,561 212,561 2,212,561
12 267,408 238,547 238,547 2,238,547 237,061 237,061 2,237,061
13 297,578 264,475 264,475 2,264,475 262,564 262,564 2,262,564
14 329,257 291,525 291,525 2,291,525 289,092 289,092 2,289,092
15 362,520 319,736 319,736 2,319,736 316,667 316,667 2,316,667
16 397,446 349,147 349,147 2,349,147 345,304 345,304 2,345,304
17 434,118 379,795 379,795 2,379,795 375,015 375,015 2,375,015
18 472,624 411,719 411,719 2,411,719 405,808 405,808 2,405,808
19 513,055 444,953 444,953 2,444,953 437,678 437,678 2,437,678
20 555,508 479,529 479,529 2,479,529 470,618 470,618 2,470,618
25 801,815 673,476 673,476 2,673,476 650,334 650,334 2,650,334
30 1,116,173 902,708 902,708 2,902,708 846,950 846,950 2,846,950
35 1,517,381 1,158,266 1,158,266 3,158,266 1,028,513 1,028,513 3,028,513
40 2,029,436 1,409,274 1,409,274 3,409,274 1,123,184 1,123,184 3,123,184
45 2,682,963 1,572,562 1,572,562 3,572,562 973,827 973,827 2,973,827
50 3,517,046 1,479,164 1,479,164 3,479,164 322,779 322,779 2,322,779
55 4,581,572 900,701 900,701 2,900,701 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.
A-23
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 6% (4.40% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ---------------------------------- ---------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ --------- ----------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 15,574 14,774 2,015,574 15,570 14,770 2,015,570
2 34,400 31,826 31,186 2,031,826 31,809 31,169 2,031,809
3 52,962 48,785 48,305 2,048,785 48,743 48,263 2,048,743
4 72,410 66,481 66,161 2,066,481 66,400 66,080 2,066,400
5 92,831 84,943 84,783 2,084,943 84,806 84,646 2,084,806
6 114,272 104,204 104,204 2,104,204 103,988 103,988 2,103,988
7 136,786 124,294 124,294 2,124,294 123,973 123,973 2,123,973
8 160,425 145,248 145,248 2,145,248 144,789 144,789 2,144,789
9 185,246 167,099 167,099 2,167,099 166,463 166,463 2,166,463
10 211,309 189,898 189,898 2,189,898 189,037 189,037 2,189,037
11 238,674 213,701 213,701 2,213,701 212,561 212,561 2,212,561
12 267,408 238,547 238,547 2,238,547 237,061 237,061 2,237,061
13 297,578 264,475 264,475 2,264,475 262,564 262,564 2,262,564
14 329,257 291,525 291,525 2,291,525 289,092 289,092 2,289,092
15 362,520 319,736 319,736 2,319,736 316,667 316,667 2,316,667
16 397,446 349,147 349,147 2,349,147 345,304 345,304 2,345,304
17 434,118 379,795 379,795 2,379,795 375,015 375,015 2,375,015
18 472,624 411,719 411,719 2,411,719 405,808 405,808 2,405,808
19 513,055 444,953 444,953 2,444,953 437,678 437,678 2,437,678
20 555,508 479,529 479,529 2,479,529 470,618 470,618 2,470,618
25 801,815 673,476 673,476 2,673,476 650,334 650,334 2,650,334
30 1,116,173 902,708 902,708 2,902,708 846,950 846,950 2,846,950
35 1,517,381 1,158,266 1,158,266 3,158,266 1,028,513 1,028,513 3,028,513
40 2,029,436 1,409,274 1,409,274 3,409,274 1,123,184 1,123,184 3,123,184
45 2,682,963 1,572,562 1,572,562 3,572,562 973,827 973,827 2,973,827
50 3,517,046 1,479,164 1,479,164 3,479,164 322,779 322,779 2,322,779
55 4,581,572 900,701 900,701 2,900,701 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.
A-24
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED --------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 14,678 13,878 2,014,678 14,675 13,875 2,014,675
2 34,400 29,116 28,476 2,029,116 29,099 28,459 2,029,099
3 52,962 43,314 42,834 2,043,314 43,275 42,795 2,043,275
4 72,410 57,276 56,956 2,057,276 57,201 56,881 2,057,201
5 92,831 71,003 70,843 2,071,003 70,878 70,718 2,070,878
6 114,272 84,497 84,497 2,084,497 84,304 84,304 2,084,304
7 136,786 97,757 97,757 2,097,757 97,474 97,474 2,097,474
8 160,425 110,785 110,785 2,110,785 110,387 110,387 2,110,387
9 185,246 123,581 123,581 2,123,581 123,037 123,037 2,123,037
10 211,309 136,144 136,144 2,136,144 135,420 135,420 2,135,420
11 238,674 148,473 148,473 2,148,473 147,528 147,528 2,147,528
12 267,408 160,565 160,565 2,160,565 159,350 159,350 2,159,350
13 297,578 172,421 172,421 2,172,421 170,877 170,877 2,170,877
14 329,257 184,049 184,049 2,184,049 182,106 182,106 2,182,106
15 362,520 195,438 195,438 2,195,438 193,016 193,016 2,193,016
16 397,446 206,581 206,581 2,206,581 203,580 203,580 2,203,580
17 434,118 217,463 217,463 2,217,463 213,767 213,767 2,213,767
18 472,624 228,072 228,072 2,228,072 223,544 223,544 2,223,544
19 513,055 238,387 238,387 2,238,387 232,864 232,864 2,232,864
20 555,508 248,387 248,387 2,248,387 241,680 241,680 2,241,680
25 801,815 292,614 292,614 2,292,614 275,861 275,861 2,275,861
30 1,116,173 322,244 322,244 2,322,244 283,159 283,159 2,283,159
35 1,517,381 322,748 322,748 2,322,748 233,824 233,824 2,233,824
40 2,029,436 263,350 263,350 2,263,350 72,335 72,335 2,072,335
45 2,682,963 76,406 76,406 2,076,406 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.
A-25
<PAGE>
CHUBB LIFE INSURANCE COMPANY OF AMERICA
CHUBB HERITAGE II JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
DEATH BENEFIT OPTION II;
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS
MALE NON-SMOKER ISSUE AGE 40 ANNUAL RATE OF RETURN: 0% (-1.60% NET)
FEMALE NON-SMOKER ISSUE AGE 35 ASSUMED ANNUAL PREMIUM (1): $16,000
$2,000,000 INITIAL SPECIFIED AMOUNT
<TABLE>
<CAPTION>
PREMIUMS ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
END ACCUMULATED ------------------------------- --------------------------------
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE(2) VALUE(2) VALUE(2) BENEFITS(2) VALUE(2) BENEFIT(2)
- ---- -------------- ------------ -------- --------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,800 14,678 13,878 2,014,678 14,675 13,875 2,014,675
2 34,400 29,116 28,476 2,029,116 29,099 28,459 2,029,099
3 52,962 43,314 42,834 2,043,314 43,275 42,795 2,043,275
4 72,410 57,276 56,956 2,057,276 57,201 56,881 2,057,201
5 92,831 71,003 70,843 2,071,003 70,878 70,718 2,070,878
6 114,272 84,497 84,497 2,084,497 84,304 84,304 2,084,304
7 136,786 97,757 97,757 2,097,757 97,474 97,474 2,097,474
8 160,425 110,785 110,785 2,110,785 110,387 110,387 2,110,387
9 185,246 123,581 123,581 2,123,581 123,037 123,037 2,123,037
10 211,309 136,144 136,144 2,136,144 135,420 135,420 2,135,420
11 238,674 148,473 148,473 2,148,473 147,528 147,528 2,147,528
12 267,408 160,565 160,565 2,160,565 159,350 159,350 2,159,350
13 297,578 172,421 172,421 2,172,421 170,877 170,877 2,170,877
14 329,257 184,049 184,049 2,184,049 182,106 182,106 2,182,106
15 362,520 195,438 195,438 2,195,438 193,016 193,016 2,193,016
16 397,446 206,581 206,581 2,206,581 203,580 203,580 2,203,580
17 434,118 217,463 217,463 2,217,463 213,767 213,767 2,213,767
18 472,624 228,072 228,072 2,228,072 223,544 223,544 2,223,544
19 513,055 238,387 238,387 2,238,387 232,864 232,864 2,232,864
20 555,508 248,387 248,387 2,248,387 241,680 241,680 2,241,680
25 801,815 292,614 292,614 2,292,614 275,861 275,861 2,275,861
30 1,116,173 322,244 322,244 2,322,244 283,159 283,159 2,283,159
35 1,517,381 322,748 322,748 2,322,748 233,824 233,824 2,233,824
40 2,029,436 263,350 263,350 2,263,350 72,335 72,335 2,072,335
45 2,682,963 76,406 76,406 2,076,406 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.
A-26
<PAGE>
Form 3-00474 Ed. 5/97
FOR USE IN ARKANSAS ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Postponement of Payments on
page 25 of the Prospectus is deleted and amended to read
as follows:
Postponement of Payments. Payments 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 practicable or it is not reasonably practicable
to determine the value of net assets in Separate Account C.
If payment of any death benefit is delayed for over 30
days, after Chubb Life receives due proof of death,
proceeds that are payable in one sum will be increased
to include interest at a yearly rate of 8%.
<PAGE>
Form 3-00480 Ed. 5/97
FOR USE IN MISSOURI ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Limitation on Right to Contest
on page 25 of the Prospectus is deleted and amended to read
as follows:
Limitation on Right to Contest. Chubb Life will not contest or
revoke the insurance coverage provided under
the Policy, except for any subsequent increase in Specified
Amount, after the Policy has been in force during the
lifetime of each Insured for a period of two years from the
date it is issued or the Policy Date, whichever is earlier.
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.
The section Suicide on page 25 of the Prospectus is amended by
adding the following:
Suicide is no defense to payment of life insurance
benefits nor is suicide, while sane or insane, a
defense to payment of the accidental death benefits,
if any, under this Policy where the Policy is issued
to a Missouri citizen unless Chubb Life can show
that the Insured intended suicide when he applied for
the policy, regardless of any language to the contrary
in this Policy.
<PAGE>
Form 3-00482 Ed. 5/97
FOR USE IN NORTH CAROLINA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
A new section Conversion is added to the Prospectus under
"POLICY BENEFITS AND RIGHTS" on page 16, and reads as follows:
Conversion - During the first eighteen months while
this Policy is in force, the Policyowner may convert this Policy
to a substantially comparable plan of permanent fixed benefit
insurance offered by Chubb Life, provided: (i) no required premium
for this Policy is unpaid beyond the grace period; (ii)
Chubb Life is not waiving premiums under a waiver of premium rider,
if any; (iii) written request for the conversion is received
by Chubb Life prior to the end of the conversion period; and (iv)
the Policyowner surrender this Policy to Chubb Life.
The new policy will be non-participating and issued: (i)
using the same issue date as this Policy; (ii) using the
same age at issue as this Policy; (iii) without proof of
insurability; (iv) for an amount equal to or lesser than the
initial Specified Amount of this Policy, but not less than
the lowest amount that is issued by Chubb Life on the new policy as
of the issue date; (v) using premium rates, which were in
effect as of the issue date, for the same class ratings
as this Policy; (vi) with such riders and incidental
insurance benefits as are included with this policy if
such riders and incidental insurance benefits are issued with
the new policy; and (vii) subject to an equitable premium
or cash value adjustment that takes appropriate account
of the premiums and cash values under this Policy and the
new policy.
<PAGE>
Form 3-00486 Ed. 5/97
FOR USE IN COLORADO ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The first paragraph of the Section
Suicide
on page 25 of the Prospectus is deleted and
replaced by the following:
Suicide.
The Policy does not cover the risk of suicide within one
year from the date the Policy is issued or one year
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 one year 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 one year 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.
<PAGE>
Form 3-00488 Ed. 5/97
FOR USE IN WISCONSIN ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The Section
Limitation on Right to Contest
on page 25 of the Prospectus is deleted
and replaced by the following:
Limitation on Right to Contest.
With respect to each Insured, we cannot contest the
validity of this policy, except for any increase in
the Specified Amount, after this Policy has been in force
during the lifetime of that Insured for two years from
its Issue Date, except for the failure to pay premiums.
With respect to each Insured, we cannot contest the
validity of any increase in the Specified Amount after the
increase has been in force during the lifetime of such Insured
for two years from the effective date of such increase, except for
the failure to pay premiums. Any increase will be contestable,
within the two year period, only with regard to statements
concerning the increase.
<PAGE>
Form 3-00485 Ed. 5/97
FOR USE IN RHODE ISLAND ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
A Section
Automatic Premium Loan
is added to the Prospectus under "The Policies" on
page 14 before the Section "The Policies-Reinstatement"
and provides as follows:
Automatic Premium Loan.
If a premium becomes due and it is not paid at the end
of the Grace Period, it will be paid by Chubb Life and
charged as a policy loan. The full premium due will be paid
if the available cash value less any debt is great enough.
If not enough is available, premium will be paid each day
by loan. In this way, the policy will remain in force
until the end of the day on which the total indebtedness
first equals or exceeds the cash value.
This provision may be cancelled by written request received
at the Home Office before the end of the Grace Period.
A loan made under this provision will be reversed on the
Owner's written request. Such request must be received
within two months of the due date of the premium paid by
the loan. At that time the policy may be surrendered for cash.
<PAGE>
Form 3-00483 Ed. 5/97
FOR USE IN SOUTH CAROLINA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Limitation on Right to Contest on page 25 of the
Prospectus is deleted and replaced by the following:
Limitation on Right to Contest. After two years
from its Issue Date, this Policy shall be incontestable
as to statements made in the application. If an increase
in the Specified Amount becomes effective after the
effective date, such increase will be incontestable as to
statements made in the application for increase after two
years from its effective date.
<PAGE>
Form 3-00487 Ed. 5/97
FOR USE IN MASSACHUSETTS ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
A paragraph is added to the end of the Section
Transfers
on page 12 of the Prospectus and reads as follows:
The shareholders of each Portfolio may change the investment
policy of that Portfolio in accordance with regulations set
by the Securities and Exchange Commission. If that occurs,
the Policyowner may transfer 100% of the Policy's Accumulation
Value to the General Account without charge or may transfer
100% of the Accumulation Value of Separate Account C's Division
relating to that underlying Portfolio subject to the transfer
charges and limitations as explained above.
The sixth paragraph under the Section
Policy Loans
on page 23 of the Prospectus is deleted and
replaced with the following:
If the total debt equals or exceeds the Cash Value at any
time, a report indicating the minimum premium required to
keep the Policy in force will be sent to the Policyowner. If the
required premium is not received by the next monthly anniversary day
this Policy will enter the Grace Period as described in the
Policy Lapse
section on page 13.
<PAGE>
Form 3-00481 Ed. 5/97
FOR USE IN CONNECTICUT ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
A new section Conversion is added to the Prospectus under "POLICY
BENEFITS AND RIGHTS" on page 16, and reads as follows:
Conversion - During the first eighteen months
while this Policy is in force, the Policyowner may convert this Policy
to a policy of permanent, fixed benefit insurance offered
by Chubb Life, provided: (i) no required premium for this Policy
is unpaid beyond the grace period; (ii) Chubb Life is not waiving
premiums under a waiver of premium rider, if any; (iii)
written request for the conversion is received by Chubb Life
prior to the end of the conversion period; and (iv) the Policyowner
has surrendered this Policy to Chubb Life.
The new policy will be non-participating and issued: (i)
using the same issue date as this Policy; (ii) using the
same age at issue as this Policy; (iii) without proof of
insurability; (iv) for an amount equal to or lesser than
the Initial Specified Amount of this Policy, but not
less than the lowest amount that is issued by Chubb Life on
the new policy as of the issue date; (v) using premium
rates, which were in effect as of the issue date, for
the same class ratings as this Policy; (vi) with such
riders and incidental insurance benefits as are included
with this Policy if such riders and incidental insurance
benefits are issued with the new policy. If the
conversion results in an increase or decrease in Cash
Value, such increase or decrease will be payable to the
Policyowner or Chubb Life as the case may be; and (vii) with any excess
of accrued premium on this Policy, from the issue date to the
date of request for conversion, applied as an advance
premium over the corresponding accrued premium on the new
policy, except that any portion of such excess which is
less than a regular mode premium on the new policy may
either be applied as an advance premium or refunded in
cash at the Policyowner's option.
<PAGE>
Form 3-00790 Ed. 5/97
FOR USE IN CALIFORNIA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
This supplement updates certain information contained in your
Prospectus. Please read this supplement and keep
it with your Prospectus for future reference.
The definition of Net Premium on page 3 of the Prospectus is hereby
deleted and amended to read as follows:
Net Premium - The gross premium less a 2.35% state premium tax charge,
a 1.25% Federal deferred acquisition cost tax charge and a 3% sales
charge.
The section State Premium Tax Charge and Federal DAC Tax Charge on page
5 of the Prospectus is hereby deleted and amended to read as follows:
These charges are deducted from each premium payment, currently
2.35% for state premium taxes and 1.25% as a Federal deferred
acquisition cost ("DAC") tax charge.
The first paragraph of the section Premium Charges on page 14 of the
Prospectus is hereby deleted and amended to read as follows:
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 2.35% Chubb Life does not expect to
profit from this charge.
FOR POLICYOWNERS AGE 60 AND OVER ONLY, the sections Is there a short-
term cancellation right? on page 7 of the Prospectus and Policy "Free
Look" on page 14 are hereby deleted and amended to read as follows:
The Policyowner has the limited right to return a Policy
for cancellation and refund. 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
30 days after the delivery of the Policy to the Policyowner.
Chubb Life will return to the Policyowner, within seven
days of the notice to return the Policy, the Accumulation
Value of the Policy, plus any amounts deducted as a
premium charge, as of the day the Policy is returned. Prior
to the Allocation Date the initial Net Premium will be
held in Chubb Life's General Account.
<PAGE>
Form 3-00479 Ed. 5/97
FOR USE IN IDAHO ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Reinstatement on page 14
of the Prospectus is deleted and replaced with the
following:
Reinstatement. If the Policy lapses, the
Policyowner may reinstate the Policy. The terms of the
original contract will apply upon reinstatement. The
Accumulation Value, before payment of the required
reinstatement premium, will equal the Accumulation Value
on the date of termination. The policy year on
reinstatement will be measured from the Policy Date.
An application for reinstatement may be made any time
within five years of lapse and before the Maturity
Date, but satisfactory proof of insurability of the
Insured under Chubb 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 with interest
at a rate of 6% 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.
In the section Surrender Privileges on
page 22 of the Prospectus a paragraph is added after
the second paragraph, which reads as follows:
If Chubb Life defers payment of a surrender value
under the provision of this section, Chubb Life shall
pay interest to the policyowner at the rate specified
in Section 28-22-104(2), Idaho Code as established and in
existence at the time of the surrender demand.
<PAGE>
Form 3-00665 Ed. 5/97
FOR USE IN MONTANA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Definitions on page 3
of the Prospectus is amended by deleting the definition
of "Joint Equal Age" and replacing it with the
following new definition:
Joint Equal Age - On Chubb Heritage II, this
will be calculated pursuant to a formula which converts
the specific age and underwriting classifications of
the two Insured into one age. The Joint Equal Age is used
in determining issue age limitations, minimum premiums
and guaranteed death benefit premiums.
The section Cost of Insurance Charge on page 6 of the Prospectus
is deleted and amended to read
as follows:
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
Issue Age, policy year, smoking status, 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 1980 CSO-A
Smoker or Nonsmoker Mortality Table.
The section Payment of Premiums on page
11 of the Prospectus is amended by deleting the fourth
sentence from the bottom and replacing it with the following
new sentence:
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 and risk class, as discussed with the
agent.
The second sentence in the section Guaranteed Death Benefit
Premiums on page 11 of the Prospectus is
amended by deleting the second sentence and replacing it
with the following new sentence:
This cumulative minimum premium is based on Issue Age,
smoking status and underwriting class of the Insured(s)
as well as the Specified Amount and Death Benefit Option.
The third paragraph of the Transfers section on page 12 of the
Prospectus is amended by deleting the third sentence of that paragraph
and replacing it with the following new sentence:
The minimum period will depend on the amount of the
Accumulation Value, the Specified Amount, the Attained
Age, and rating class of the Insured at the time of transfer.
The second paragraph of the section Monthly Deduction on page 15 of
the Prospectus is deleted and amended to read as follows:
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 cost of insurance rate is based on
the Issue Age, policy year, smoking status, rating
class of the Insured(s), Specified Amount, Death Benefit
Option and applicable corridor percentage.
The fourth paragraph of the section Monthly Deduction on page 15 of
the Prospectus is deleted and amended to read as follows:
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 1980
CSO-A Smoker or Non-smoker Mortality Table.
The section Misstatements on page 25 of the Prospectus is deleted and
amended to read as follows:
Misstatements. If the age 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.
The Guaranteed Death Benefit section on page 19 is amended by deleting
the second sentence of that section and replacing it with the
following new sentence:
The premium requirement is based on Issue Age, smoking
status, underwriting class, Specified Amount and Death
Benefit Option.
<PAGE>
Form 3-00478 Ed. 5/97
FOR USE IN NEBRASKA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Limitation on Right to Contest
on page 25 of the Prospectus is deleted and replaced by
the following:
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 Policy Date or effective date of
reinstatement. 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.
The section Suicide on page 25 is
deleted and replaced by the following:
Suicide. The Policy does not cover the risk of
suicide within two years from the Policy Date 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
Policy Date, 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.
<PAGE>
Form 3-00664 Ed. 5/97
FOR USE IN MARYLAND ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The section Policy "Free Look" on page 14 of the Prospectus is
deleted and amended to read as follows:
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, whichever is later, (i) 10 days after the Policyowner
receives the Policy, (ii) 45 days of the date of the execution of the
application for insurance or (iii) such longer period as may be
required by the Securities and Exchange Commission. 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.
The section Exchange is added to the Prospectus under POLICY BENEFITS
AND RIGHTS" on page 16 and reads as follows:
Exchange - During the first eighteen months while
this Policy is in force, the Policyowner may exchange this
Policy for a substantially comparable policy of permanent,
fixed benefit insurance offered by Chubb Life, provided:
(1) no required premium for this Policy is unpaid beyond
the grace period;
(2) written request for the exchange is received by Chubb
Life prior to the end of the exchange
period; and
(3) the Policyowner surrenders this Policy to Chubb Life.
The new policy will be non-participating and issued:
(1) using the same date of issue and age at issue as this Policy;
(2) for an amount equal to or lesser than the Initial Specified
Amount of this Policy, but not less
than the lowest amount that is issued by us on the new
Policy as of Issue Date;
(3) using premium rates, which were in effect as of the
Issue Date, for the same class ratings
as this Policy;
(4) with such riders and incidental insurance benefits
as are included with this Policy if such
riders and
incidental insurance benefits are issued with the new policy;
(5) subject to an equitable premium or cash value adjustments
that takes appropriate account
of the premiums
and cash values under this Policy and the new policy: and
(6) without proof of insurability.
The section (a) Guaranteed Death Benefit on page 19 of the Prospectus
is deleted and amended to read as follows:
Guaranteed Continuation Benefit. The Policyowner
may add a Guaranteed Continuation 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 rider. See "Optional Insurance Benefits."
The section Optional Insurance Benefits on page 19 of the Prospectus is
amended by deleting the title (a) Guaranteed Death Benefit Rider and
replacing it with the following title: (a) Guaranteed Continuation
Benefit Rider.
<PAGE>
Form 3-00700 Ed. 5/97
FOR USE IN TEXAS ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The first paragraph of the question and answer regarding
Policy Loans on page 7 of the Prospectus is deleted and
amended to read as follows:
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. The maximum
loan amount is 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.
The section Transfers on page 12 of the Prospectus is amended by
deleting the last sentence in the second paragraph of that section and
replacing it with the following:
Chubb Life reserves the right to revoke or modify
transfer privileges and charges upon 30 days' advance
notice to Policyowners.
The section Reinstatement on page 14
of the Prospectus is amended by adding the following
as the second paragraph of that section:
If the 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.
Any contest of the reinstatement may be for a material and
fraudulent misrepresentation only and the reinstatement
may not be contested more than two years from the effective
date of the reinstatement.
The first paragraph of the section Policy Loans on page 22 of the
Prospectus is deleted and amended to read as follows:
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. The maximum loan amount
is the Cash Value at the end of the Valuation Period during
which the loan request is received. The maximum amount which
may be borrowed at any given time is the maximum loan amount
reduced by any outstanding Policy debt.
<PAGE>
Form 3-00484 Ed. 5/97
FOR USE IN WEST VIRGINIA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The first paragraph of the section Transfer on page 12 of the
Prospectus is deleted and amended to read as follows:
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. Chubb Life may defer a potion
of any transfer for up to 30 days. 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 on Division, and/or into the
General Account, counts as one transfer. Similarly,
transferring Accumulation Value from more than one
Division, and/or the General Account, into one other
Division or the General Account, counts as on transfer.
The second paragraph of the section Surrender Privileges on page
22 of the Prospectus is deleted and amended to read as follows:
The surrender value of the Policy equals the Cash Value
less any outstanding Policy Debt. The amount payable
upon surrender of the Policy is surrender value at the
end of Valuation Period during which the requests 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. Chubb Life may defer payment of the cash
surrender value for up to 30 days. See :POLICY BENEFITS
AND RIGHTS - Settlement Options".
A sentence is added to the fourth paragraph of the section
Surrender Privileges on page 22 of the Prospectus which reads as
follows:
Chubb Life may defer requests to withdraw for up to 30
days.
The second paragraph of the section Policy Loans on page 23 of
the Prospectus is deleted and amended to read as follows:
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 defer the granting
of a policy loan for a period of not more than six
months, unless such policy loan is to be applied to the payment
of premiums on policies with Chubb Life. 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.
The section Postponement of Payments on page 25 of the Prospectus
is deleted and amended to read
as follows:
Postponement of Payments. Chubb Life may defer
requests to withdraw and payment of the cash surrender
value for up to 30 days. Additionally, 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.
<PAGE>
Form 3-00477 Ed. 5/97
FOR USE IN THE US VIRGIN ISLANDS ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The fourth paragraph of the section Policy Loans on page 23 of the
Prospectus is deleted and replaced by the following:
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 amount available at any time for a Type A loan
equals the maximum loan amount less the Guideline Single
Premium at issue, as set forth in the Code, less any
outstanding Type A loans. Any other loans are Type B
loans. A Type B loan is charged an interest rate of
5.85%. 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. Interest is due and payable at the end of each
policy year, and any interest not paid when due becomes
loan principal.
The second to last sentence in the second paragraph of the section
General Account Accumulation Value on page 26 of the Prospectus is
deleted and replaced with the following:
Accumulation Value in the General Account that equals
indebtedness will be credited interest daily at an
effective annual rate of 5%.
<PAGE>
Form 3-00489 Ed. 5/97
FOR USE IN VIRGINIA ONLY
Supplement Dated May 1, 1997 to Prospectus Dated May 1, 1997
CHUBB SEPARATE ACCOUNT C
OF
CHUBB LIFE INSURANCE COMPANY OF AMERICA
The seventh sentence of the section
Payment of Premiums
on page 11 of the Prospectus is deleted and
replaced by the following two sentences:
These limits will be set forth by Chubb Life and will include
a minimum initial premium payment and may also include limits
on the total amount and frequency of payments in each policy
year as outlined under the Cumulative Premium Limit Provision
below. The total of all premiums may never exceed the
current maximum premium limitations set forth in the Internal
Revenue Code.
The following new section
Cumulative Premium Limit
is added to the Prospectus on page 11 after the section
Payment of Premiums.
Cumulative Premium Limit.
The Internal Revenue Code limits the amount of
premiums which may be paid under this Policy for the
Death Benefit to qualify for exclusion from gross income.
Chubb Life will calculate this limit and any amount of premium
paid in excess of such limit will be returned to the Policyowner.
The amount of additional payments allowed is provided each year
in the Policyowner's annual statement.
The third sentence in the section
Policy Lapse
on page 13 of the Prospectus is amended to read
as follows:
In the second policy year and thereafter, 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.
The sixth sentence in the first paragraph of the section
Death Benefits
of page 16 of the Prospectus is deleted and
replaced by the following two sentences:
Form 3-00489 Ed. 5/97 Page 2
Interest will be paid on the Death Benefit Proceeds at a
rate of 4% or the rate currently being credited under
Settlement Option D, if greater, from the date of death
to the date of payment. If State Law requires payment of
a greater amount, Chubb Life will pay that amount.
The section
Limitation on Right to Contest
on page 25 of the Prospectus is deleted and replaced
by the following:
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. Except
for any increase in the Specified Amount, Chubb Life will not
contest this Policy, 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.
The Last Sentence in the Section
Suicide
on page 25 of the Prospectus is amended to read as follows:
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 premiums
paid with any associated expense charges, without interest,
for such increase.
<PAGE>
PART II
UNDERTAKINGS TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore, or hereafter duly adopted pursuant to
authority conferred in that section.
UNDERTAKING REGARDING INDEMNIFICATION
Pursuant to Rule 484(b)(1) of the Securities Act of 1933, insofar as
indemnification for liability arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the Registrant, the
Registrant has been advised that in the option of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer of controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATIONS REGARDING FEES AND CHARGES
The fees and charges deducted under the contract, in the aggregate, are
reasonable in relation to the services rendered, the expenses expected to be
incurred and the risks assumed by Chubb Life Insurance Company of America.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following pages and documents:
The facing sheet
The prospectus consisting of 84 pages
The undertaking to file reports
The undertaking pursuant to Rule 484(b)(1) under the Securities Act of 1933
regarding indemnification/2/
The representaitons regarding fees and charges
The signatures
Written consents of the following persons:
(a) Michael J. LeBoeuf, FSA, MAAA, contained in Exhibit 6 below.
(b) Ernst & Young LLP
The following exhibits:
1. The following exhibits correspond to those required by paragraph A of
the instructions as to exhibits in Form N-8B-2:
(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./3/ (Incorporated by reference to Exhibit 1(a) of Post-Effective
Amendment No. 2 to the Registration Statement on Form S-6 for Chubb Separate
Account C, filed February 23, 1996, Registation No. 33-72830).
(b) Not Applicable
(c) (i) Form of Distribution Agreement among Chubb Life Insurance Company
of America, Chubb Separate Account C, and Chubb Securities Corporation./3/
(Incorporated by reference to Exhibit 1(c)(i) of Post-Effective Amendment No. 2
to the Registration Statement on Form S-6 for Chubb Separate Account C, filed
February 23, 1996, Registation No. 33-72830).
(ii) Specimen Variable Contracts Selling Agreement between Chubb
Securities Corporation and Selling Broker-Dealers./3/ (Incorporated by reference
to Exhibit 1(c)(ii) of Post-Effective Amendment No. 2 to the Registration
Statement on Form S-6 for Chubb Separate Account C, filed February 23, 1996,
Registation No. 33-72830).
(iii) Specimen District Manager's Agreement of Chubb Securities
Corporation./3/ (Incorporated by reference to Exhibit 1(c)(iii) of Post-
Effective Amendment No. 2 to the Registration Statement on Form S-6 for Chubb
Separate Account C, filed February 23, 1996, Registation No. 33-72830).
(iv) Specimen Registered Representative's Agreement of Chubb Securities
Corporation./3/ (Incorporated by reference to Exhibit 1(c)(iv) of Post-Effective
Amendment No. 2 to the Registration Statement on Form S-6 for Chubb Separate
Account C, filed February 23, 1996, Registation No. 33-72830).
(v) Schedule of Commissions./3/ (Incorporated by reference to Exhibit
1(c)(v) of Post-Effective Amendment No. 2 to the Registration Statement on Form
S-6 for Chubb Separate Account C, filed February 23, 1996, Registation No. 33-
72830).
(d) Not Applicable
(e) (i) Specimen flexible premium variable life insurance policy./3/
(Incorporated by reference to Exhibit 1(e)(i) of Post-Effective Amendment No. 2
to the Registration Statement on Form S-6 for Chubb Separate Account C, filed
February 23, 1996, Registation No. 33-72830).
(ii) Specimen joint and last survivor flexible premium variable life
insurance policy./3/ (Incorporated by reference to Exhibit 1(e)(ii) of Post-
Effective Amendment No. 2 to the Registration Statement on Form S-6 for Chubb
Separate Account C, filed February 23, 1996, Registation No. 33-72830).
(iii) Forms of Riders/3/ (Incorporated by reference to Exhibit
1(e)(iii) of Post-Effective Amendment No. 2 to the Registration Statement on
Form S-6 for Chubb Separate Account C, filed February 23, 1996, Registation No.
33-72830).
<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/
2. Specimen Policy (Same as 1(e))./3/
<PAGE>
3. Opinion of counsel as to securities being registered./3/
4. Not applicable.
5. Not applicable.
6. Actuarial opinions and consents of Michael J. LeBoeuf, FSA, MAAA./3/
7. Consent of Ernst & Young LLP
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)./3/
10. Form of Reinsurance Agreement./3/
11. Powers of Attorney./3/
12. Memorandum regarding reliance on Order of the Commission./3/
- -------------
/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.
/3/ Incorporated by reference to Post-Effective Amendment No. 3 to the
Registration Statement on form S-6 of Chubb Separate Account C, filed
February 28, 1996, File No. 33-72830.
<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. 5 to the
Registration Statement and has duly caused this Post-Effective Amendment No. 5
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 April, 1997.
(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. 5
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 April, 1997.
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
James I. Cash
*
- ------------------------------------ Director, Vice Chairman
Percy Chubb, III
*
- ------------------------------------ Director
Joel J. Cohen
*
- ------------------------------------ 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 April, 1997, pursuant
to Powers of Attorney filed as Exhibit
11 hereto.
<PAGE>
EXHIBIT INDEX
7. Consent of Ernst & Young LLP
Independent Auditors.......................................
8. Procedures Memorandum, as
amended May 1, 1997........................................
11. Powers of Attorney.........................................
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> JPM TREASURY MONEY MARKET DIVISION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 341,627
<INVESTMENTS-AT-VALUE> 332,488
<RECEIVABLES> 30,363
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 362,851
<PAYABLE-FOR-SECURITIES> 15,830
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 15,830
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 356,160
<SHARES-COMMON-STOCK> 31,902
<SHARES-COMMON-PRIOR> 26,619
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (9,139)
<NET-ASSETS> 347,021
<DIVIDEND-INCOME> 14,544
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,603
<NET-INVESTMENT-INCOME> 12,941
<REALIZED-GAINS-CURRENT> (1,817)
<APPREC-INCREASE-CURRENT> (1,756)
<NET-CHANGE-FROM-OPS> 9,368
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 231,052
<NUMBER-OF-SHARES-REDEEMED> 225,769
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 68,576
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 312,733
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> JPM BOND DIVISION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 1,640,623
<INVESTMENTS-AT-VALUE> 1,639,615
<RECEIVABLES> 72,546
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,712,161
<PAYABLE-FOR-SECURITIES> 187
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 187
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,712,982
<SHARES-COMMON-STOCK> 145,282
<SHARES-COMMON-PRIOR> 30,070
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,008)
<NET-ASSETS> 1,711,974
<DIVIDEND-INCOME> 72,947
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 6,172
<NET-INVESTMENT-INCOME> 66,775
<REALIZED-GAINS-CURRENT> (870)
<APPREC-INCREASE-CURRENT> (4,624)
<NET-CHANGE-FROM-OPS> 61,281
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 170,414
<NUMBER-OF-SHARES-REDEEMED> 55,202
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,362,610
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 1,030,669
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> JPM EQUITY DIVISION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 3,496,728
<INVESTMENTS-AT-VALUE> 3,867,682
<RECEIVABLES> 396,459
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,264,141
<PAYABLE-FOR-SECURITIES> 543
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 543
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,892,644
<SHARES-COMMON-STOCK> 266,050
<SHARES-COMMON-PRIOR> 229,367
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 370,954
<NET-ASSETS> 4,263,598
<DIVIDEND-INCOME> 448,127
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 24,143
<NET-INVESTMENT-INCOME> 423,984
<REALIZED-GAINS-CURRENT> 67,265
<APPREC-INCREASE-CURRENT> 176,276
<NET-CHANGE-FROM-OPS> 667,525
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 182,200
<NUMBER-OF-SHARES-REDEEMED> 145,517
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,213,332
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 3,656,932
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> JPM SMALL COMPANY DIVISION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 1,798,085
<INVESTMENTS-AT-VALUE> 1,884,131
<RECEIVABLES> 203,236
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,087,367
<PAYABLE-FOR-SECURITIES> (697)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> (697)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,002,018
<SHARES-COMMON-STOCK> 130,645
<SHARES-COMMON-PRIOR> 14,405
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 86,046
<NET-ASSETS> 2,088,064
<DIVIDEND-INCOME> 220,553
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 6,703
<NET-INVESTMENT-INCOME> 213,850
<REALIZED-GAINS-CURRENT> 3,521
<APPREC-INCREASE-CURRENT> 82,854
<NET-CHANGE-FROM-OPS> 300,225
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 158,843
<NUMBER-OF-SHARES-REDEEMED> 42,603
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,897,702
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 1,139,213
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> JPM INTERNATIONAL EQUITY DIVISION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 3,543,074
<INVESTMENTS-AT-VALUE> 3,823,016
<RECEIVABLES> 182,552
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,005,568
<PAYABLE-FOR-SECURITIES> 501
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 501
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,725,125
<SHARES-COMMON-STOCK> 318,930
<SHARES-COMMON-PRIOR> 168,512
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 279,942
<NET-ASSETS> 4,005,067
<DIVIDEND-INCOME> 182,187
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 18,798
<NET-INVESTMENT-INCOME> 163,389
<REALIZED-GAINS-CURRENT> 15,389
<APPREC-INCREASE-CURRENT> 206,175
<NET-CHANGE-FROM-OPS> 384,953
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 251,694
<NUMBER-OF-SHARES-REDEEMED> 101,276
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,122,186
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 2,943,974
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<PAGE>
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts" and to the
use of our reports dated March 5, 1997 for Chubb Life Insurance Company of
America and Subsidiaries and March 14, 1997 for Chubb Separate Account C in
Post-Effective Amendment No. 5 to the Registration Statement (Form S-6 No.
33-72830) and related Prospectus for the registration of units of interest in
the Chubb Separate Account C under individual and survivorship flexible premium
variable life insurance policies offered by Chubb Life Insurance Company of
America.
ERNST & YOUNG LLP
Boston, Massachusetts
April 28, 1997
<PAGE>
EXHIBIT 14
POWERS OF ATTORNEY
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby Constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/22/96 /s/ John C. Beck
- ------------------------ ------------------------------------
(Date) (Signature)
John C. Beck
------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/20/96 /s/ Percy Chubb V
- ----------------------------- ------------------------------------
(Date) (Signature)
Percy Chubb V
------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/22/96 /s/ Joel J. Cohen
- ----------------------------- -----------------------------------
(Date) (Signature)
Joel J. Cohen
-----------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/25/96 /s/ James I. Cash, Jr.
- ----------------------------- --------------------------------------
(Date) (Signature)
James I. Cash, Jr.
--------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/25/96 /s/ David H. Hoag
- ----------------------------- ------------------------------------
(Date) (Signature)
David H. Hoag
------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
12/2/96 /s/ Robert V. Lindsay
- ----------------------------- -------------------------------------
(Date) (Signature)
Robert V. Lindsay
-------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
12/2/96 /s/ Thomas C. MacAvoy
- ----------------------------- -----------------------------------
(Date) (Signature)
Thomas C. MacAvoy
-----------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/25/96 /s/ Gertrude G. Michelson
- ----------------------------- -----------------------------------
(Date) (Signature)
Gertrude G. Michelson
-----------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/20/96 /s/ Dean R. O'Hare
- ----------------------------- -------------------------------------
(Date) (Signature)
Dean R. O'Hare
-------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
12/2/96 /s/ Warren B. Rudman
- ----------------------------- -----------------------------------
(Date) (Signature)
Warren B. Rudman
-----------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/25/96 /s/ Sir David Gerald Scholey
- ----------------------------- ------------------------------------
(Date) (Signature)
Sir David Gerald Scholey
------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/24/96 /s/ Raymond G.H. Seitz
- ----------------------------- --------------------------------------
(Date) (Signature)
Raymond G.H. Seitz
---------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
11/26/96 /s/ Lawrence M. Small
- ----------------------------- ------------------------------------
(Date) (Signature)
Lawrence M. Small
------------------------------------
(Please Print or Type Name)
<PAGE>
POWER OF ATTORNEY
-----------------
I, the undersigned, hereby constitute and appoint Frederick H. Condon,
Theresa M. Stone and Richard V. Werner, each of them, my true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for me and in my name, place and stead, in any and all
capacities to sign registration statements, pre-effective amendments and post-
effective amendments to registration statements on Form S-6 under the Securities
Act of 1933 and to file the same, or cause the same to be filed, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission. I further grant unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in the exercise of
the powers herein granted, as fully as I could do if personally present, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or any of their substitutes, may lawfully do or cause to be done by the
powers herein granted.
12/2/96 /s/ Richard D. Wood
- ----------------------------- ----------------------------------
(Date) (Signature)
Richard D. Wood
----------------------------------
(Please Print or Type Name)
