As Filed with the Securities and Exchange Commission on May 3, 1999
File Nos. 33-79170, 811-8524
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 10 [X]
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 11 [X]
(Check appropriate box or boxes.)
EQUITABLE LIFE INSURANCE COMPANY OF IOWA SEPARATE ACCOUNT A
___________________________________________________________
(Exact Name of Registrant)
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
________________________________________
(Name of Depositor)
909 Locust Street, Des Moines, Iowa 50309
____________________________________________________ __________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (800) 344-6860
NAME AND ADDRESS OF AGENT FOR SERVICE
James Mumford, Secretary
Equitable Life Insurance Company of Iowa
909 Locust Street
Des Moines, IA 50309
COPIES TO:
Marilyn Talman, Esq. COPY TO:
Golden American Life Insurance Company Stephen E. Roth, Esq.
1475 Dunwoody Drive Sutherland Asbill & Brennan LLP
West Chester, PA 19380-1478 1275 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2404
It is proposed that this filing will become effective:
_X_ immediately upon filing pursuant to paragraph (b) of Rule 485
___ on ______________ pursuant to paragraph (b) of Rule 485
___ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
___ on (date) pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following:
___ This Post-Effective Amendment designates a new effective date for
a previously filed Post-Effective Amendment.
TITLE OF SECURITIES BEING REGISTERED:
Individual Flexible Purchase Payment Deferred Variable and Fixed
Annuity Contracts
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PART A
EXPLANATORY NOTE
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This Registration Statement contains two Prospectuses for the Contract. The
distribution system for each version of the Prospectus is different. One
version (Version A) of the Prospectus contains twenty portfolios of The GCG
Trust, two portfolios of PIMCO Variable Insurance Trust and one portfolio
of Warburg Pincus Trust. The other version (Version B) of the Prospectus
contains three portfolios of The GCG Trust, four Portfolios of Travelers Series
Fund Inc, one Portfolio of Greenwich Street Series Fund and five Portfolios of
Smith Barney Concert Allocation Series Inc. These Prospectuses and any
applicable Supplements will be filed with the Commission pursuant to Rule 497.
The Registrant undertakes to update this Explanatory Note each time a Post-
Effective Amendment is filed.
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EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
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PROFILE OF
EQUI-SELECT
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACT
MAY 1, 1999
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This Profile is a summary of some of the more important points
that you should know and consider before purchasing the Contract.
The Contract is more fully described in the full prospectus which
accompanies this Profile. Please read the prospectus carefully.
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1. THE ANNUITY CONTRACT
The Contract offered in this prospectus is an individual flexible
premium deferred variable annuity contract between you and Equitable
Life Insurance Company of Iowa ("Equitable Life", "we", "us" or the
"Company"). The Contract provides a means for you to invest on a tax-
deferred basis in one or more of 21 mutual fund investment portfolios
through our Separate Account A listed under Item 4. Keep in mind
that you can loose or not make any money.
The Contract, like all deferred variable annuity contracts, has two
phases: the accumulation phase and the income phase. The accumulation
phase is the period between the contract date and the date on which
you start receiving the annuity payments under your Contract. The
amounts you accumulate during the accumulation phase will determine
the amount of annuity payments you will receive. The income phase
begins when you start receiving regular annuity payments from your
Contract on the annuity start date.
You determine (1) the amount and frequency of premium payments, (2)
the investments, (3) transfers between investments, (4) the type of
annuity to be paid after the accumulation phase, (5) the beneficiary
who will receive the death benefits, and (6) the amount and frequency
of withdrawals.
2. YOUR ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity payments are the periodic payments you will begin receiving on
the annuity start date. You may choose one of the following fixed
annuity payment options:
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[Table with Shaded Heading]
Annuity Options
|------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The contract value, less any applicable taxes |
| not previously deducted, may be left on |
| deposit with the Company for five (5) years. |
| We will make fixed payments monthly, |
| quarterly, semi-annually, or annually. We do |
| not make monthly payments if the contract |
| value applied to this option is less than |
| $100,000. You may |
| not withdraw the proceeds until the end of |
| the five (5) year period. |
| |
| Option 2 The cash surrender value may be left on |
| deposit with us for a specified period. |
| Interest will be paid annually. All or part |
| of the proceeds may be withdrawn at any time. |
|------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The contract value, less any applicable taxes |
| not previously deducted, will be paid until |
| the proceeds, plus interest, are paid in |
| full. Payments may be paid annually or |
| monthly for a period of not more than thirty |
| (30) years nor less than five (5) years. The |
| Contract provides for a table of minimum |
| annual payments. They are based on the age |
| of the annuitant or the beneficiary. |
|------------------------------------------------------------------------|
| PLAN C. LIFE INCOME |
| The contract value less any applicable taxes |
| not previously deducted will be paid in |
| monthly or annual payments for as long as the |
| annuitant or beneficiary, whichever is |
| appropriate, lives. We have the right to |
| require proof satisfactory to it of the age |
| and sex of such person and proof of |
| continuing survival of such person. A |
| minimum number of payments may be guaranteed, |
| if desired. The Contract provides for a |
| table of minimum annual payments. They are |
| based on the age of the annuitant or the |
| beneficiary. |
|------------------------------------------------------------------------|
3. PURCHASE (BEGINNING OF THE ACCUMULATION PHASE)
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may make
the minimum payments of $100 per month if payroll deduction is used;
otherwise it is an aggregate of $2,000 per year. Prior approval must
be obtained from us for subsequent payments in excess of $500,000 or
for total payments in excess of $1,000,000. We reserve the right to
accept or decline any application or payment. In certain states we
also accept initial and additional premium payments by wire order.
Wire transmittals must be accompanied by sufficient electronically
transmitted data.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
Who may purchase this Contract? The Contract may be purchased by
individuals as part of a personal retirement plan (a "non-qualified
Contract"), or as a Contract that qualifies for special tax treatment
when purchased as either an Individual Retirement Annuity (IRA) or in
connection with a qualified retirement plan (each a "qualified
Contract").
The Contract is designed for people seeking long-term tax-deferred
accumulation of assets, generally for retirement or other long-term
purposes. The tax-deferred feature is more attractive to people in
high federal and state tax brackets. You should not buy this Contract
if you are looking for a short-term investment or if you cannot risk
getting back less money than you put in.
4. THE INVESTMENT PORTFOLIOS
You can direct your money into any one or more of the following 21
mutual fund investment portfolios through our Separate Account A. The
investment portfolios are described in the prospectuses for the GCG
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Trust, PIMCO Insurance Trust, and the Warburg Pincus Trust. If you
invest in any of the following investment portfolios, depending on
market conditions, you may make or lose money:
<TABLE>
<C> <C>
THE GCG TRUST
Liquid Asset Series Value Equity Series
Limited Maturity Bond Series Research Series
Global Fixed Income Series Strategic Equity Series
Total Return Series Capital Appreciation Series
Equity Income Series Mid-Cap Growth Series
Fully Managed Series Small Cap Series
Rising Dividends Series Real Estate Series
Growth & Income Series Hard Asset Series
Growth Series Developing World Series
THE WARBURG PINCUS TRUST
International Equity Portfolio
PIMCO VARIABLE INSURANCE TRUST
PIMCO High Yield Bond Portfolio
PIMCO StocksPLUS Growth and Income Portfolio
5. EXPENSES
The Contract has insurance features and investment features, and there
are costs related to each. The Company deducts an annual contract
administrative charge of $30. We also collect a mortality and expense
risk charge and an asset-based administrative charge. These 2 charges
are deducted daily directly from the amounts in the investment
portfolios. The annual rate of the asset-based administrative charge
and the mortality and expense risk charge is as
follows:
Mortality & Expense Risk Charge................. 1.25%
Asset-Based Administrative Charge............... 0.15%
Total....................................... 1.40%
Each investment portfolio has charges for investment management fees
and other expenses. These charges, which vary by investment
portfolio, currently range from 0.59% to 1.83% annually (see table
below) of the portfolio's average daily net asset balance.
You may make 12 free transfers each contract year. We will assess a
transfer equal to the lesser of 2% of the Contract Value transferred
or an amount not greater than $25 for each transfer after the twelfth
transfer in a contract year.
If you withdraw money from your Contract, or if you begin receiving
annuity payments, we may deduct a premium tax of 0%-3.5% to pay to
your state.
We deduct a surrender charge if you surrender your Contract or
withdraw an amount exceeding earnings plus the free withdrawal amount.
We also deduct a surrender charge if you annuitize under Plan
A-Option 1.
At any time you may make a withdrawal, without the imposition of a
surrender charge, of an amount equal to the sum of:
(1) earnings (Contract value less unliquidated premium payments not
withdrawn);
(2) payments in the Contract for more than eight years; and
(3) an amount which is equal to 10% of the payments in the Contract
for less than eight years, fixed at the time of the first
withdrawal in the contract year, plus 10% of the payments made
after the first withdrawal in the contract year but before the
next contract anniversary, less any withdrawals in the same
Contract year of payments less than eight years old.
The following table shows the schedule of the surrender charge that
will apply. The surrender charge is a percent of each premium
payment.
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COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 |7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
SURRENDER CHARGE 8% | 7% | 6% | 5% | 4% | 3% |2% |1% | 0%
The following table is designed to help you understand the Contract
charges. The "Total Annual Insurance Charges" column includes the
maximum mortality and expense risk charge, the asset-based
administrative charge, and reflects the annual contract administrative
charge as 0.10% (based on an average contract value of $31,000). The
"Total Annual Investment Portfolio Charges" column reflects the
portfolio charges for each portfolio and are based on actual expenses
as of December 31, 1998, except for portfolios that commenced
operations during 1998 where the charges have been annualized. The
column "Total Annual Charges" reflects the sum of the previous two
columns. The columns under the heading "Examples" show you how much
you would pay under the Contract for a 1-year period and for a 10-year
period.
As required by the Securities and Exchange Commission, the examples
assume that you invested $1,000 in a Contract that earns 5% annually
and that you withdraw your money at the end of Year 1 or at the end of
Year 10. For Years 1 and 10, the examples show the total annual
charges assessed during that time. For these examples, the premium
tax is assumed to be 0%.
[Table with shaded heading and shaded lines for readability]
TOTAL ANNUAL EXAMPLES:
TOTAL ANNUAL INVESTMENT TOTAL TOTAL CHARGES AT THE END OF:
INSURANCE PORTFOLIO ANNUAL
INVESTMENT PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
THE GCG TRUST
Liquid Asset 1.50% 0.59% 2.09% $101.17 $240.39
Limited Maturity Bond 1.50% 0.60% 2.10% $101.27 $241.44
Global Fixed Income 1.50% 1.60% 3.10% $111.27 $340.06
Total Return 1.50% 0.97% 2.47% $104.98 $279.18
Equity Income 1.50% 0.98% 2.48% $105.08 $280.18
Fully Managed 1.50% 0.98% 2.48% $105.08 $280.18
Rising Dividends 1.50% 0.98% 2.48% $105.08 $280.18
Growth & Income 1.50% 1.08% 2.58% $106.08 $290.11
Growth 1.50% 1.09% 2.59% $106.18 $291.10
Value Equity 1.50% 0.98% 2.48% $105.08 $280.18
Research 1.50% 0.94% 2.44% $104.68 $276.17
Strategic Equity 1.50% 0.99% 2.49% $105.18 $280.17
Capital Appreciation 1.50% 0.98% 2.48% $105.08 $280.18
Mid-Cap Growth 1.50% 0.95% 2.45% $104.78 $277.18
Small Cap 1.50% 0.99% 2.49% $105.18 $281.17
Real Estate 1.50% 0.99% 2.49% $105.18 $281.17
Hard Assets 1.50% 1.00% 2.50% $105.28 $282.17
Developing World 1.50% 1.83% 3.33% $113.55 $361.27
THE WARBURG PINCUS TRUST
International Equity
Portfolio 1.50% 1.33% 2.83% $108.58 $314.48
PIMCO VARIABLE INSURANCE TRUST
PIMCO StocksPLUS Growth
Income Portfolio 1.50% 0.65% 2.15% $101.77 $246.62
PIMCO High Yield Bond
Portfolio 1.50% 0.75% 2.25% $102.77 $256.92
The "Total Annual Investment Portfolio Charges" reflect current
expense reimbursements for the Total Return and Global Fixed Income
portfolios. The Year 1 examples above include a 8% surrender charge.
For more detailed information, see the fee table in the prospectus for
the Contract.
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6. TAXES
Under a qualified Contract, your premiums are pre-tax contributions
and accumulate on a tax-deferred basis. Premiums and earnings are
generally taxed as income when you make a withdrawal or begin
receiving annuity payments, presumably when you are in a lower tax
bracket.
Under a non-qualified Contract, premiums are paid with after-tax
dollars, and any earnings will accumulate tax-deferred. You will be
taxed on these earnings, but not on premiums, when you withdraw them
from the Contract.
For owners of most qualified Contracts, when you reach age 70 1/2 (or
in some cases, retire), you will be required by federal tax laws to
begin receiving payments from your annuity or risk paying a penalty
tax. In those cases, we can calculate and pay you the minimum
required distribution amounts. If you are younger than 59 1/2 when
you take money out, in most cases, you will be charged a 10% federal
penalty tax on the amount withdrawn.
7. WITHDRAWALS
You can withdraw your money at any time during the accumulation phase.
You may elect in advance to take systematic withdrawals which are
described on page 8. Withdrawals above the free withdrawal amount may
be subject to a surrender charge. Income taxes and a penalty tax may
apply to amount withdrawn.
8. PERFORMANCE
The value of your Contract will fluctuate depending on the investment
performance of the portfolio(s) you choose. The following chart shows
average annual total return for each portfolio for the time periods
shown. These numbers reflect the deduction of the mortality and
expense risk charge, the asset-based administrative charge and the
annual contract fee, but do not reflect deductions for any surrender
charges. Please keep in mind that past performance is not a guarantee
of future results.
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[Table with shaded heading and shaded lines for readability]
CALENDAR YEAR
INVESTMENT PORTFOLIO 1998 1997 1996 1995
Managed by A I M Capital Management, Inc.
Capital Appreciation(1) 11.01 27.06 18.47 28.42
Strategic Equity(2) (0.67) 21.34 17.61 --
Managed by T. Rowe Price Associates, Inc.
Fully Managed 4.32 13.64 14.64 19.09
Equity Income(2) 6.65 15.70 7.14 17.33
Managed by Kayne Anderson Investment Management, LLC
Rising Dividends 12.44 27.91 18.85 29.31
Managed by EII Realty Securities, Inc.
Real Estate (14.76) 20.97 33.30 15.02
Managed by Eagle Asset Management, Inc.
Value Equity (0.04) 25.41 8.97 (33.47)
Managed by Fred Alger Management, Inc.
Small Cap 19.19 8.69 18.33 --
Managed by ING Investment Management, LLC
Limited Maturity Bond 5.27 5.08 2.75 10.21
Liquid Asset 3.48 3.53 3.41 4.09
Managed by Pacific Investment Management Company
PIMCO High Yield Bond -- -- -- --
PIMCO StocksPLUS Growth and Income -- -- -- --
Managed by Alliance Capital Management L.P.
Growth & Income(2) 10.31 23.30 -- --
Managed by Janus Capital Corporation
Growth(2) 24.96 14.05 -- --
Managed by Massachusetts Financial Services Company
Mid-Cap Growth 21.00 17.89 18.69 27.57
Total Return 9.93 19.08 12.00 22.72
Research 21.23 18.35 21.52 34.61
Managed by Baring International Investment Limited
Global Fixed Income 10.19 (0.84) 3.43 14.69
Hard Assets(2) (30.66) 4.58 31.27 9.19
Developing World(2) -- -- -- --
Managed by Warburg Pincus Asset Management, Inc.
International Equity Portfolio 3.78 (3.72) -- --
________________________
(1)Prior to April 1, 1999, a different firm managed the Portfolio.
(2)Prior to March 1, 1999, a different firm managed the Portfolio.
9. DEATH BENEFIT
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are the annuitant, if you die during
the accumulation phase, your beneficiary will receive a death benefit
unless the beneficiary is your surviving spouse and elects to continue
the Contract. The death benefit value is calculated at the close of
the business day on which we receive proof of death at our Customer
Service Center and the beneficiary's election regarding payment.
If the beneficiary elects not to take the death
benefit at the time of death, the death benefit in the future may be
affected. The proceeds may be received in a single sum or applied to
any of the annuity options within one year of death. If we do not
receive a request to apply the death benefit proceeds to an annuity
option, we will make a single sum distribution. We will generally pay
death benefit proceeds within 7 days after
our Customer Service Center has received sufficient information to
make the payment.
The death benefit may be subject to certain mandatory distribution
rules.
DEATH PROCEEDS
If the annuitant is less than AGE 67 at the time of purchase, the
death benefit is the greatest of:
(1) the contract value;
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(2) the total premium payments made under the Contract after
subtracting any withdrawals; or
(3) the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to
attained age 76.
If the annuitant is BETWEEN THE AGES OF 67 AND 75 at the time of
purchase, the death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals; or
(3) The contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the death
benefit is the contract value.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplemental agreement
in effect.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
Please refer to the Contract for more details.
10. OTHER INFORMATION
FREE LOOK. If you cancel your Contract within 10 days after you
receive it, you will receive a full refund of your contract value.
For purposes of the refund during the free look period, your contract
value includes a refund of any charges deducted from your contract
value. Because of the market risks associated with investing in the
portfolios, the contract value returned may be greater or less than
the premium payment you paid. Some states require us to return to you
the amount of the paid premium (rather than the contract value) in
which case you will not be subject to investment risk during the free
look period. Also, in some states, you may be entitled to a longer
free look period. We determine your contract value at the close of
the business on the day we receive your written refund request.
TRANSFERS AMONG INVESTMENT PORTFOLIOS. Prior to the annuity start
date, you may transfer your contract value among the subaccounts in
which you are invested at the end of the free look period. We
currently do not charge you for transfers made during a contract year,
but reserve the right to charge the lesser of 2% of the Contract value
transferred or $25 for each transfer after the twelfth transfer in a
contract year. We also reserve the right to limit the number of
transfers you may make and may otherwise modify or terminate transfer
privileges if required by our business judgement or in accordance with
applicable law. The transfer fee will be deducted from the amount
which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service Center.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for
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following instructions communicated by telephone that we reasonably
believe to be genuine. We require personal identifying information
to process a request for transfer made over the telephone.
NO PROBATE. In most cases, when you die, the person you choose as
your beneficiary will receive the death benefit without going through
probate.
ADDITIONAL FEATURES. This Contract has other features you may be
interested in. These include:
Dollar Cost Averaging. This is a program that allows you to
invest a fixed amount of money in the investment portfolios each
month, which may give you a lower average cost per unit over time
than a single one-time purchase. Dollar cost averaging requires
regular investments regardless of fluctuating price levels, and
does not guarantee profits or prevent losses in a declining
market. The minimum amount which may be transferred is $100.
You must participate for at least five (5) months and have a
minimum of $500 in the subaccount from which dollar cost
averaging payments will be taken.
Systematic Withdrawals. During the accumulation phase, you
can arrange to have money sent to you at regular intervals
throughout the year. Within limits, these withdrawals will not
result in any withdrawal charge. Of course, any applicable
income and penalty taxes will apply on amounts withdrawn.
Automatic Rebalancing. If your contract value is $25,000 or
more, you may elect to have the Company automatically readjust
the money between your investment portfolios periodically to keep
the blend you select. However, we reserve the right to offer the
program on contracts with a lesser amount.
11.INQUIRIES
If you need more information after reading this prospectus, please
contact us at:
CUSTOMER SERVICE CENTER
P.O. BOX 2700
WEST CHESTER, PENNSYLVANIA 19380
(800) 366-0066
or your registered representative.
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[begin shaded block]
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
MAY 1, 1999
INDIVIDUAL FLEXIBLE PREMIUM
DEFERRED VARIABLE ANNUITY
EQUI-SELECT
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This prospectus describes an individual flexible premium deferred
variable Contract (the "Contract") offered by Equitable Life Insurance
Company of Iowa (the "Company," "we" or "our"). The Contract is
available in connection with certain retirement plans that qualify for
special federal income tax treatment ("qualified Contracts") as well
as those that do not qualify for such treatment ("non-qualified
Contracts").
The Contract provides a means for you to invest your premium payments
in one or more of 21 mutual fund investment portfolios. Your contract
value will vary daily to reflect the investment performance of the
investment portfolio(s) you select. The investment portfolios
available under your Contract and the portfolio managers are:
</TABLE>
<TABLE>
<C> <C>
T. ROWE PRICE ASSOCIATES, INC. ALLIANCE CAPITAL MANAGEMENT L. P.
Fully Managed Series Growth & Income Series
Equity Income Series JANUS CAPITAL CORPORATION
A I M CAPITAL MANAGEMENT, INC. Growth Series
Capital Appreciation Series MASSACHUSETTS FINANCIAL
Strategic Equity Series SERVICES COMPANY
KAYNE ANDERSON INVESTMENT Mid-Cap Growth Series
MANAGEMENT, LLC Total Return Series
Rising Dividends Series Research Series
EII REALTY SECURITIES, INC. ING INVESTMENT MANAGEMENT, LLC
Real Estate Series (AN AFFILIATE)
BARING INTERNATIONAL INVESTMENT Limited Maturity Bond Series
LIMITED (AN AFFILIATE) Liquid Asset Series
Hard Assets Series PACIFIC INVESTMENT MANAGEMENT
Developing World Series COMPANY
Global Fixed Income Series PIMCO High Yield Bond
EAGLE ASSET MANAGEMENT, INC. Portfolio
Value Equity Series PIMCO StocksPLUS Growth and
FRED ALGER MANAGEMENT, INC. Income Portfolio
Small Cap Series WARBURG PINCUS ASSET
MANAGEMENT, INC.
International Equity Portfolio
</TABLE>
The above mutual fund investment portfolios are purchased and held by
corresponding divisions of our Separate Account A. We refer to the
divisions as "subaccounts".
For Contracts sold in some states, not all subaccounts are available.
The prospectuses of the GCG Trust, Pimco Variable Insurance Trust and
Warburg Pincus Trust may contain portfolios not currently available in
connection with your Contract. If you cancel your Contract within 10
days after you receive it and under the following circumstances, you
will receive a full refund of the greater of premium payments, less
withdrawals, or contract value: if your state requires a 10 day free
look period; or if you purchase your Contract pursuant to an
Individual Retirement Annuity. You have the right to return the Contract
within 10 days after you receive it for a full refund of the contract
value (which may be more or less than the premium payments you paid),
or if required by your state, the original amount of your premium
payment. Longer free look periods apply in some states.
This prospectus provides information that you should know before
investing and should be kept for future reference. A Statement of
Additional Information, dated May 1, 1999, has been filed with the
Securities and Exchange Commission. It is available without charge
upon request. To obtain a copy of this document, write to our
Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania
19380 or call (800) 366-0066, or access the SEC's website
(http://www.sec.gov). The table of contents of the Statement of
Additional Information ("SAI") is on the last page of this prospectus
and the SAI is made part of this prospectus by reference.
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THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
AN INVESTMENT IN THE GCG TRUST, PIMCO VARIABLE INSURANCE TRUST OR THE
WARBURG PINCUS TRUST IS NOT A BANK DEPOSIT AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY.
THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE
GCG TRUST, PIMCO VARIABLE INSURANCE TRUST AND THE WARBURG PINCUS
TRUST.
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[Shaded Section Header]
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TABLE OF CONTENTS
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PAGE
Index of Special Terms 1
Fees and Expenses 2
Performance Information 5
Accumulation Unit 5
Net Investment Factor 6
Condensed Financial Information 6
Financial Statements 6
Performance Information 6
Equitable Insurance Company of Iowa 7
The Trusts 7
Equitable of Iowa Separate Account A 8
The Investment Portfolios 8
Investment Objectives 8
Investment Portfolio Management Fees 10
The Annuity Contract 11
Contract Date and Contract Year 11
Annuity Start Date 11
Contract Owner 11
Annuitant 11
Beneficiary 12
Purchase and Availability of the Contract 12
Crediting of Premium Payments 12
Contract Value 13
Cash Surrender Value 13
Surrendering to Receive the Cash Surrender Value 14
Addition, Deletion or Substitution
of Subaccounts and Other Changes 14
Other Important Provisions 14
Withdrawals 14
Regular Withdrawals 15
Systematic Withdrawals 15
IRA Withdrawals 15
Transfers Among Your Investments 17
Dollar Cost Averaging 17
Automatic Rebalancing 18
Death Benefit 18
Death Benefit During the Accumulation Period 18
Death Benefit 18
Death Proceeds 18
Death of Annuitant 19
Death of the Owner 19
Trust Beneficiary 20
Charges and Fees 20
Charges Deducted from the Contract value 20
Surrender Charge 21
Free Withdrawal Amount 21
Surrender Charge for Excess Withdrawals 21
Premium Taxes 21
Administrative Charge 21
i
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[Shaded Section Header]
- ----------------------------------------------------------------------
TABLE OF CONTENTS (CONTINUED)
- ----------------------------------------------------------------------
PAGE
Charges and Fees (continued)
Transfer Charge 21
Charges Deducted from the Subaccounts 22
Mortality and Expense Risk Charge 22
Asset-Based Administrative Charge 22
Trust Expenses 22
The Annuity Options 22
Selecting the Annuity Start Date 22
Fixed Payment Plans 23
The Annuity Options 24
Other Contract Provisions 24
Reports to Contract Owners 24
Suspension of Payments 24
In Case of Errors in Your Application 25
Assigning the Contract as Collateral 25
Contract Changes-Applicable Tax Law 25
Free Look 25
Group or Sponsored Arrangements 25
Selling the Contract 25
Other Information 26
Voting Rights 26
Year 2000 Problem 26
State Regulation 26
Legal Proceedings 27
Legal Matters 27
Experts 27
Federal Tax Considerations 27
More Information About Equitable
Insurance Company of Iowa 34
Financial Statements of Equitable
Insurance Company of Iowa 56
Statement of Additional Information
Table of Contents 91
Appendix A
Condensed Financial Information A1
Appendix B
Surrender Charge for Excess Withdrawals Example B1
ii
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[Shaded Section Header]
- ----------------------------------------------------------------------
INDEX OF SPECIAL TERMS
- ----------------------------------------------------------------------
The following special terms are used throughout this prospectus.
Refer to the page(s) listed for an explanation of each term:
SPECIAL TERM PAGE
Accumulation Unit 5
Annuitant 11
Annuity Options 22
Annuity Start Date 11
Cash Surrender Value 13
Contract Date 11
Contract Owner 11
Contract Value 13
Contract Year 11
Free Withdrawal Amount 21
Net Investment Factor 6
Death Benefit 18
The following terms as used in this prospectus have the same or
substituted meanings as the corresponding terms currently used in the
Contract:
TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN
THE CONTRACT
Surrender Charge Withdrawal Charge
Automatic Rebalancing Automatic Portfolio Rebalancing
Systematic Withdrawals Automatic Withdrawals
Annuity Start Date Maturity Date
Premium Payment Purchase Payment
Annual Contract Administrative Charge Annual Contract Maintenance Charge
Business Day Valuation Date
Asset-Based Administrative Charge Administrative Charge
Contract Date Issue Date
Contract Year Contract Anniversary Date
Accumulation Phase Accumulation Period
Annuity Options Payment Plans
Cash Surrender Value Contract Withdrawal Value
1
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[Shaded Section Header]
- ----------------------------------------------------------------------
FEES AND EXPENSES
- ----------------------------------------------------------------------
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 |7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
SURRENDER CHARGE 8% | 7% | 6% | 5% | 4% | 3% |2% |1% | 0%
TRANSFER CHARGE
There is no charge for the first 12 transfers in a Contract Year;
thereafter the fee is the lesser of 2% of the Contract value
transferred or $25.
ANNUAL CONTRACT ADMINISTRATIVE CHARGE
Administrative Charge......................... $ 30
SEPARATE ACCOUNT ANNUAL CHARGES***
Mortality and Expense Risk Charge............. 1.25%
Asset-Based Administrative Charge............. 0.15%
Total Separate Account Charges................ 1.40%
***As a percentage of average assets in each subaccount.
THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of an investment portfolio or on the combined average daily
net assets of the indicated groups of portfolios):
[Table with Shaded Heading and Shaded lines for readability]
|---------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(3) |
|---------------------------------------------------------------------------|
| Liquid Asset 0.59% 0.00% 0.59% |
| Limited Maturity Bond 0.60% 0.00% 0.60% |
| Global Fixed Income 1.60% 0.00% 1.60%(3) |
| Total Return 0.94% 0.03% 0.97%(3) |
| Equity Income 0.98% 0.00% 0.98% |
| Fully Managed 0.98% 0.00% 0.98% |
| Rising Dividends 0.98% 0.00% 0.98% |
| Growth & Income 1.08% 0.00% 1.08% |
| Growth 1.08% 0.01% 1.09% |
| Value Equity 0.98% 0.01% 0.99% |
| Research 0.94% 0.00% 0.94% |
| Strategic Equity 0.98% 0.01% 0.99% |
| Capital Appreciation 0.98% 0.00% 0.98% |
| Mid-Cap Growth 0.94% 0.01% 0.95% |
| Small Cap 0.98% 0.01% 0.99% |
| Real Estate 0.98% 0.01% 0.99% |
| Hard Assets 0.98% 0.02% 1.00% |
| Developing World 1.75% 0.08% 1.83% |
| All-Growth(4) 0.98% 0.01% 0.99% |
| Growth Opportunities(4) 1.10% 0.05% 1.15% |
|---------------------------------------------------------------------------|
(1) Fees decline as combined assets increase. See the prospectus
for the GCG Trust for more information.
(2) Other expenses generally consist of independent trustees fees
and certain expenses associated with investing in international
markets. Other expenses are based on actual expenses for the year
ended December 31, 1998, except for portfolios that commenced
operations in 1998 where the charges have been annualized.
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(3) Directed Services, Inc. is currently reimbursing expenses to
maintain total expenses at 0.97% for the Research portfolio and
1.60% for the Global Fixed Income portfolio as shown. Without this
reimbursement, and based on current estimates, total expenses
would be 0.98% for the Research portfolio and 1.74% for the Global
Fixed Income portfolio. This agreement will remain in place
through December 31, 1999.
(4) As of May 1, 1999, we no longer offer the All-Growth and
Growth Opportunities portfolios.
THE WARBURG PINCUS TRUST ANNUAL EXPENSES (as a percentage of the
average daily net assets of a portfolio):
[Table with Shaded Heading]
|---------------------------------------------------------------------------|
| ADVISORY OTHER TOTAL |
| PORTFOLIO FEES EXPENSES EXPENSES |
|---------------------------------------------------------------------------|
| International Equity Portfolio 1.00% 0.33% 1.33% |
|---------------------------------------------------------------------------|
(1) Total expenses are based on actual expenses for the fiscal
year ended December 31, 1998.
THE PIMCO TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of a portfolio):
[Table with Shaded Heading]
|---------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT(1) REIMBURSEMENT(1) |
|---------------------------------------------------------------------------|
| PIMCO High Yield Bond 0.50% 0.25%(2) 0.75% |
| PIMCO StocksPLUS Growth |
| and Income 0.40% 0.25% 0.65% |
|---------------------------------------------------------------------------|
(1) PIMCO has agreed to waive some or all of its other expenses,
subject to potential future reimbursement, to the extent that
total expenses for the PIMCO High Yield Bond portfolio and PIMCO
StocksPLUS portfolio would exceed 0.75% and 0.65%, respectively
due to payment by the portfolios of their pro rata portion of
Trustees' fees. Without this agreement, and based on current
estimates, total expenses would be 0.81% for the PIMCO High Yield
Bond portfolio and 0.72% for the PIMCO StocksPLUS Growth and
Income portfolio.
(2) Since the PIMCO High Yield Bond portfolio commenced
operations on April 30, 1998, other expenses as shown have been
annualized for the year ended December 31, 1998.
The purpose of the foregoing tables is to help you understand the
various costs and expenses that you will bear directly and indirectly.
See the prospectuses of the GCG Trust, the PIMCO Trust and the Warburg
Pincus Trust for additional information on portfolio expenses.
Premium taxes (which currently range from 0% to 3.5% of premium
payments) may apply, but are not reflected in the table above or the
examples below.
4
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EXAMPLES:
The following examples are based on an assumed 5% annual return.
If you surrender your contract at the end of the applicable time
period, or if you choose Payment plan A - Option 2, you would pay the
following expenses for each $1,000 invested:
------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset $101.17 $128.28 $156.90 $240.39
Limited Maturity Bond $101.27 $128.59 $157.41 $241.44
Global Fixed Income $111.27 $158.54 $207.22 $340.06
Total Return $104.98 $139.78 $176.14 $279.18
Equity Income $105.08 $140.08 $176.64 $280.18
Fully Managed $105.08 $140.08 $176.64 $280.18
Growth Opportunities(1) $106.78 $145.18 $185.93 $297.00
Rising Dividends $105.08 $140.08 $176.64 $280.18
Growth & Income $106.08 $143.08 $181.64 $290.11
Growth $106.18 $143.38 $182.14 $291.10
Value Equity $105.08 $140.08 $176.64 $280.18
Research $104.68 $138.88 $174.64 $276.17
All-Growth(1) $105.18 $140.38 $177.14 $281.17
Strategic Equity $105.18 $140.38 $177.14 $281.17
Capital Appreciation $105.08 $140.08 $176.64 $280.18
Mid-Cap Growth $104.78 $139.18 $175.14 $277.18
Small Cap $105.18 $140.38 $177.14 $281.17
Real Estate $105.18 $140.38 $177.14 $281.17
Hard Assets $105.28 $140.68 $177.64 $282.17
Developing World $113.55 $165.31 $218.32 $361.27
THE WARBURG PINCUS TRUST
International Equity
Portfolio $108.58 $150.55 $194.03 $314.48
THE PIMCO VARIABLE INSURANCE TRUST
PIMCO StocksPLUS
Growth & Income $101.77 $130.11 $159.96 $246.62
PIMCO High Yield Bond $102.77 $133.14 $165.05 $256.92
___________________
(1)As of May 1, 1999, we no longer offer the All-Growth or
Growth Opportunities portfolios.
4
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If you do not surrender your Contract or if you annuitize on the
annuity start date under a payment plan other than Plan A, Option 2,
you would pay the following expenses for each $1,000 invested:
------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset $21.17 $ 65.28 $111.90 $240.39
Limited Maturity Bond $21.27 $ 65.59 $112.41 $241.44
Global Fixed Income $31.27 $ 95.54 $162.22 $340.06
Total Return $24.98 $ 76.78 $131.14 $279.18
Equity Income $25.08 $ 77.08 $131.64 $280.18
Fully Managed $25.08 $ 77.08 $131.64 $280.18
Growth Opportunities(1) $26.78 $ 82.18 $140.93 $297.00
Rising Dividends $25.08 $ 77.08 $131.64 $280.18
Growth & Income $26.08 $ 80.08 $136.64 $290.11
Growth $26.18 $ 80.38 $137.14 $291.10
Value Equity $25.08 $ 77.08 $131.64 $280.18
Research $24.68 $ 75.88 $129.64 $276.17
All-Growth(1) $25.18 $ 77.38 $132.14 $281.17
Strategic Equity $25.18 $ 77.38 $132.14 $281.17
Capital Appreciation $25.08 $ 77.08 $131.64 $280.18
Mid-Cap Growth $24.78 $ 76.18 $130.14 $277.18
Small Cap $25.18 $ 77.38 $132.14 $281.17
Real Estate $25.18 $ 77.38 $132.14 $281.17
Hard Assets $25.28 $ 77.68 $132.64 $282.17
Developing World $33.55 $102.31 $173.32 $361.27
THE WARBURG PINCUS TRUST
International Equity
Portfolio $28.58 $ 87.55 $149.03 $314.48
THE PIMCO VARIABLE INSURANCE TRUST
PIMCO StocksPLUS
Growth & Income $21.77 $ 67.11 $114.96 $246.62
PIMCO High Yield Bond $22.77 $ 70.14 $120.05 $256.92
__________________________________
(1) As of May 1, 1999, we no longer offer the All-Growth and
Growth Opportunities portfolios.
The example above reflects the annual administrative charge as an
annual charge of 0.10% of assets (based on an average contract value
of $31,000). Your charge would be higher for smaller Contract values
and lower for higher Contract values. Premium taxes may apply and are
not reflected in the example.
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT.
[Shaded Section Header]
- ----------------------------------------------------------------------
PERFORMANCE INFORMATION
- ----------------------------------------------------------------------
ACCUMULATION UNIT
We use accumulation units to calculate the value of a Contract. Each
subaccount of Separate Account A has its own accumulation unit value.
The accumulation units are valued each business day that the New York
Stock Exchange is open for trading. Their values may increase or
decrease from day to day according to a Net Investment Factor, which
is primarily based on the investment performance of the applicable
investment portfolio. Shares in the investment portfolios are valued
at their net asset value.
5
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NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance of the subaccount.
The Net Investment Factor is calculated as follows:
(1) We take the net asset value of the subaccount at the end of
each business day.
(2) We add to (1) the amount of any dividend or capital gains
distribution declared for the subaccount and reinvested in such
subaccount. We subtract from that amount a charge for our
taxes, if any.
(3) We divide (2) by the net asset value of the investment
portfolio at the end of the preceding business day.
(4) We then subtract the daily mortality and expense risk charge
and the daily asset-based administrative charge from each
subaccount.
Calculations for the investment portfolios are made on a per share
basis.
CONDENSED FINANCIAL INFORMATION
Tables containing (i) the accumulation unit value history of each
subaccount of Equitable Life Insurance Company of Iowa Separate
Account A available through the Contract, offered in this prospectus
and (ii) the total investment value history of each subaccount are
presented in Appendix A - Condensed Financial Information.
FINANCIAL STATEMENTS
The audited financial statements of Equitable Life Insurance Company
of Iowa Separate Account A for the years ended December 31, 1998 and
1997 and Equitable Life Insurance Company of Iowa for the years ended
December 31, 1998, 1997 and 1996 are included in the Statement of
Additional Information.
PERFORMANCE INFORMATION
From time to time, we may advertise or include in reports to contract
owners performance information for the subaccounts of Separate Account
A, including the average annual total return performance, yields and
other nonstandard measures of performance. Such performance data will
be computed, or accompanied by performance data computed, in
accordance with standards defined by the SEC.
Except for the Liquid Asset subaccount, quotations of yield for the
subaccounts will be based on all investment income per unit (contract
value divided by the accumulation unit) earned during a given 30-day
period, less expenses accrued during such period. Information on
standard total average annual return performance will include average
annual rates of total return for 1, 5 and 10 year periods, or lesser
periods depending on how long the subaccount of Separate Account A has
been in existence. We may show other total returns for periods less
than one year. Total return figures will be based on the actual
historic performance of the subaccounts of Separate Account A,
assuming an investment at the beginning of the period, withdrawal of
the investment at the end of the period, and the deduction of all
applicable portfolio and contract charges. We may also show rates of
total return on amounts invested at the beginning of the period with
no withdrawal at the end of the period. Total return figures which
assume no withdrawals at the end of the period will reflect all
recurring charges, but will not reflect the surrender charge. In
addition, we may present historic performance data for the mutual fund
investment portfolios since their inception reduced by some or all of
the fees and charges under the Contract. Such adjusted historic
performance includes data that precedes the inception dates of the
subaccounts of Separate Account A. This data is designed to show the
performance that would have resulted if the Contract had been in
existence during that time.
Current yield for the Liquid Asset subaccount is based on income
received by a hypothetical investment over a given 7-day period, less
expenses accrued, and then "annualized" (i.e., assuming that the 7-day
yield would be received for 52 weeks). We calculate "effective yield"
for the Liquid Asset subaccount in a manner similar
6
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to that used to calculate yield, but when annualized, the income
earned by the investment is assumed to be reinvested. The
"effective yield" will thus be slightly higher than the "yield"
because of the compounding effect of earnings. We calculate
quotations of yield for the remaining subaccounts on all investment
income per accumulation unit earned during a given 30-day period,
after subtracting fees and expenses accrued during the period.
We may compare performance information for a subaccount to: (i) the
Standard & Poor's 500 Stock Index, Dow Jones Industrial Average,
Donoghue Money Market Institutional Averages, or any other applicable
market indices, (ii) other variable annuity separate accounts or other
investment products tracked by Lipper Analytical Services (a widely
used independent research firm which ranks mutual funds and other
investment companies), or any other rating service, and (iii) the
Consumer Price Index (measure for inflation) to assess the real rate
of return from an investment in the Contract. Our reports and
promotional literature may also contain other information including
the ranking of any subaccount based on rankings of variable annuity
separate accounts or other investment products tracked by Lipper
Analytical Services or by similar rating services.
Performance information reflects only the performance of a
hypothetical contract and should be considered in light of other
factors, including the investment objective of the investment
portfolio and market conditions. Please keep in mind that past
performance is not a guarantee of future results.
[Shaded Section Header]
- ----------------------------------------------------------------------
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
- ----------------------------------------------------------------------
Equitable Life Insurance Company of Iowa ("Equitable Life") was
founded in Iowa in 1867 and is the oldest life insurance company west
of the Mississippi. The Company is currently licensed to do business
in the District of Columbia and all states except New Hampshire and
New York. The Company is a wholly owned subsidiary of Equitable of
Iowa Companies, Inc. ("Equitable of Iowa"), a Delaware corporation,
which in turn is an indirect wholly owned subsidiary of ING Groep N.V.
("ING"). On October 24, 1997, ING acquired all interest in Equitable
of Iowa and its subsidiaries. ING, based in The Netherlands, is a
global financial services holding company with approximately $461.8
billion in assets as of December 31, 1998.
Equitable of Iowa is the holding company for Golden American Life
Insurance Company, Directed Services, Inc., the investment manager of
the GCG Trust, and other interests. Equitable of Iowa and another ING
affiliate own ING Investment Management, LLC, a portfolio manager of
the GCG Trust. ING also owns Baring International Investment Limited,
another portfolio manager of the GCG Trust.
Our principal office is located at 909 Locust Street, Des Moines, Iowa
50309.
[Shaded Section Header]
- ----------------------------------------------------------------------
THE TRUSTS
- ----------------------------------------------------------------------
The GCG Trust is a mutual fund whose shares are available to separate
accounts funding variable annuity and variable life insurance policies
offered by Equitable Life. The GCG Trust also sells its shares to
separate accounts of other insurance companies, both affiliated and
not affiliated with Equitable Life. Pending SEC approval, shares of
the GCG Trust may also be sold to certain qualified pension and
retirement plans.
The Warburg Pincus Trust is also a mutual fund whose shares are
available to separate accounts of insurance companies, including
Equitable Life, for both variable annuity contracts and variable life
insurance policies and by qualified pension and retirement plans. The
principal address of the Warburg Pincus Trust is 466 Lexington Avenue,
New York, New York 10017-3147.
The PIMCO Insurance Trust is also a mutual fund whose shares are
available to separate accounts of insurance companies, including
Golden American, for both variable annuity contracts and variable life
7
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insurance policies and by qualified pension and retirement plans. The
principal address of the PIMCO Insurance Trust is 840 Newport Center
Drive, Suite 300, Newport Beach, CA 92660.
In the event that, due to differences in tax treatment or other
considerations, the interests of contract owners of various contracts
participating in the Trusts conflict, we, the Boards of Trustees of
the GCG Trust, PIMCO Insurance Trust, Warburg Pincus Trust, Directed
Services, Inc., Warburg Pincus Asset Management, Inc., Pacific
Investment Management Company and any other insurance companies
participating in the Trusts will monitor events to identify and
resolve any material conflicts that may arise.
YOU WILL FIND COMPLETE INFORMATION ABOUT THE GCG TRUST, PIMCO
INSURANCE TRUST AND THE WARBURG PINCUS TRUST IN THE ACCOMPANYING
TRUSTS' PROSPECTUSES. YOU SHOULD READ THEM CAREFULLY BEFORE
INVESTING.
[Shaded Section Header]
- ----------------------------------------------------------------------
EQUITABLE OF IOWA SEPARATE ACCOUNT A
- ----------------------------------------------------------------------
Equitable Life Insurance Company of Iowa Separate Account A ("Account
A") was established as a separate account of the Company on July 14,
1988. It is registered with the Securities and Exchange Commission as
a unit investment trust under the Investment Company Act of 1940.
Account A is a separate investment account used for our variable
annuity contracts. We own all the assets in Account A but such assets
are kept separate from our other accounts.
Account A is divided in subaccounts. Each subaccount invests
exclusively in shares of one mutual fund investment portfolio of the
GCG Trust, PIMCO Insurance Trust and the Warburg Pincus Trust. Each
investment portfolio has its own distinct investment objectives and
policies. Income, gains and losses, realized or unrealized, of a
portfolio are credited to or charged against the corresponding
subaccount of Account A without regard to any other income, gains or
losses of the Company. Assets equal to the reserves and other
contract liabilities with respect to each are not chargeable with
liabilities arising out of any other business of the Company. They
may, however, be subject to liabilities arising from subaccounts whose
assets we attribute to other variable annuity contracts supported by
Account A. If the assets in Account A exceed the required reserves
and other liabilities, we may transfer the excess to our general
account. We are obligated to pay all benefits and make all payments
provided under the Contracts.
We currently offer other variable annuity contracts that invest in
Account A but are not discussed in this prospectus. Account A may
also invest in other investment portfolios which are not available
under your Contract.
[Shaded Section Header]
- ----------------------------------------------------------------------
THE INVESTMENT PORTFOLIOS
- ----------------------------------------------------------------------
During the accumulation phase, you may allocate your purchase payments
and contract value to any of the investment portfolios listed below.
YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE TO THE
INVESTMENT PORTFOLIOS AND MAY LOSE YOUR PRINCIPAL.
INVESTMENT OBJECTIVES
The investment objective of each investment portfolio is set forth
below. You should understand that there is no guarantee that any
portfolio will meet its investment objectives. Meeting objectives
depends on various factors, including, in certain cases, how well the
portfolio managers anticipate changing economic and market conditions.
MORE DETAILED INFORMATION ABOUT THE INVESTMENT PORTFOLIOS CAN BE FOUND
IN THE PROSPECTUSES FOR THE GCG TRUST, PIMCO INSURANCE TRUST AND THE
WARBURG PINCUS TRUST. YOU SHOULD READ THESE PROSPECTUSES BEFORE
INVESTING.
8
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[Shaded Table Header]
INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE
- ------------------------------------------------------------------------
Liquid Asset Seeks high level of current income consistent with
the preservation of capital and liquidity.
Invests primarily in obligations of the U.S.
Government and its agencies and
instrumentalities, bank obligations,
commercial paper and short-term corporate debt
securities. All securities will mature in
less than one year.
----------------------------------------------------
Limited Maturity Seeks highest current income consistent with
Bond low risk to principal and liquidity.
Also seeks to enhance its total return through
capital appreciation when market factors, such as
falling interest rates and rising bond prices,
indicate that capital appreciation may be
available without significant risk to
principal.
Invests primarily in diversified limited maturity
debt securities with average maturity dates of
five years or shorter and in no cases more than
seven years.
----------------------------------------------------
Global Fixed Seeks high total return.
Income Invests primarily in high-grade fixed income
securities, both foreign and domestic.
----------------------------------------------------
Total Return Seeks above-average income (compared to a portfolio
entirely invested in equity securities)
consistent with the prudent employment of
capital.
Invests primarily in a combination of equity
and fixed income securities.
----------------------------------------------------
Equity Income Seeks substantial dividend income as well as long-
term growth of capital.
Invests primarily in common stocks of well-
established companies paying above-average
dividends.
----------------------------------------------------
Fully Managed Seeks, over the long term, a high total investment
return consistent with the preservation of
capital and with prudent investment risk.
Invests primarily in the common stocks of
established companies believed by the
portfolio manager to have above-average
potential for capital growth.
----------------------------------------------------
Rising Dividends Seeks capital appreciation. A secondary
objective is dividend income.
Invests in equity securities that meet the
following quality criteria: regular dividend
increases; 35% of earnings reinvested
annually; and a credit rating of "A" to "AAA".
----------------------------------------------------
Growth & Income Seeks long-term total return.
Invests primarily in common stocks of
companies where the potential for change
(earnings acceleration) is significant.
----------------------------------------------------
Growth Seeks capital appreciation.
Invests primarily in common stocks of growth
companies that have favorable relationships between
price/earnings ratios and growth rates in sectors
offering the potential for above-average returns.
----------------------------------------------------
Value Equity Seeks capital appreciation. Dividend income
is a secondary objective.
Invests primarily in common stocks of domestic
and foreign issuers which meet quantitative
standards relating to financial soundness and
high intrinsic value relative to price.
----------------------------------------------------
Research Seeks long-term growth of capital and future income.
Invests primarily in common stocks or
securities convertible into common stocks of
companies believed to have better than average
prospects for long-term growth.
----------------------------------------------------
Strategic Equity Seeks capital appreciation.
Invests primarily in common stocks of medium-
and small-sized companies.
----------------------------------------------------
Capital Seeks long-term capital growth.
Appreciation Invests primarily in equity securities
believed by the portfolio manager to be
undervalued.
----------------------------------------------------
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Mid-Cap Growth Seeks long-term growth of capital.
Invests primarily in equity securities of
companies with medium market capitalization
which the portfolio manager believes have
above-average growth potential.
----------------------------------------------------
Small Cap Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies that have a total market
capitalization within the range of companies
in the Russell 2000 Growth Index or the
Standard & Poor's Small-Cap 600 Index.
----------------------------------------------------
Real Estate Seeks capital appreciation. Current income is a
secondary objective.
Invests primarily in publicly-traded real
estate equity securities.
----------------------------------------------------
Hard Assets Seeks long-term capital appreciation.
Invests primarily in hard asset securities.
Hard asset companies produce a commodity which
the portfolio manager is able to price on a
daily or weekly basis.
----------------------------------------------------
Managed Global Seeks capital appreciation. Current income is
only an incidental consideration.
Invests primarily in common stocks traded in
securities markets throughout the world.
----------------------------------------------------
Developing World Seeks capital appreciation.
Invests primarily in equity securities of
companies in developing or emerging countries.
----------------------------------------------------
Emerging Markets Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies in at least six different emerging
market countries.
----------------------------------------------------
PIMCO High Yield Seeks to maximize total return, consistent with
Bond preservation of capital and prudent investment
management.
Invests in at least 65% of its assets in a
diversified portfolio of junk bonds rated at least
B by Moody's Investor Services, Inc. or Standard &
Poor's or, if unrated, determined by the portfolio
manager to be of comparable quality.
----------------------------------------------------
PIMCO StocksPLUS Seeks to achieve a total return which exceeds
Growth and the total return performance of the S&P 500.
Income Invests primarily in common stocks, options,
futures, options on futures and swaps.
----------------------------------------------------
As of May 1, 1999, we no longer offer the following two portfolios:
All-Growth Seeks capital appreciation.
Invests primarily in growth securities of
middle-range capitalization companies.
----------------------------------------------------
Growth
Opportunities Seeks capital appreciation.
Invests primarily in equity securities of
domestic companies emphasizing companies with
market capitalizations of $1 billion or more.
----------------------------------------------------
INVESTMENT PORTFOLIO MANAGEMENT FEES
Directed Services, Inc. serves as the overall manager of the GCG
Trust. Warburg Pincus Management, Inc. serves as the overall adviser
of the Warburg Pincus Trust and Pacific Investment Management Company
serves as the overall advisor to the PIMCO Insurance Trust. Directed
Services, Inc., Pacific Investment Management Company and Warburg
Pincus Asset Management, Inc. provide or procure, at their own
expense, the services necessary for the operation of the portfolios.
See the cover page of this prospectus for the names of the
corresponding portfolio managers. Directed Services, Inc., Pacific
Investment Management Company and Warburg Pincus Asset Management,
Inc. do not bear the expense of brokerage fees and other transactional
expenses for securities, taxes (if any) paid by a portfolio, interest
on borrowing, fees and
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expenses of the independent trustees, and extraordinary expenses,
such as litigation or indemnification expenses.
The GCG Trust pays Directed Services, Inc. for its services a monthly
fee based on the annual rates of the average daily net assets of the
investment portfolios. Directed Services, Inc. (and not the GCG
Trust) in turn pays each portfolio manager a monthly fee for managing
the assets of the portfolios.
The Warburg Pincus Trust pays Warburg Pincus Asset Management, Inc. a
monthly advisory fee and a monthly administrative fee of 1.00% based
on the average daily net assets of each of the investment portfolios
for managing the assets of the portfolios and for administering the
Warburg Pincus Trust.
The PIMCO Insurance Trust pays PIMCO a monthly advisory fee and a
monthly administrative fee of 0.25% based on the average daily net
assets of each of the investment portfolios for managing the assets of
the portfolios and for administering the PIMCO Insurance Trust.
More detailed information about each portfolio's management fees can
be found in the prospectuses for each Trust. You should read these
prospectuses before investing.
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THE ANNUITY CONTRACT
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The Contract described in this prospectus is an individual flexible
premium deferred variable annuity Contract. The Contract provides a
means for you to invest in one or more of the available mutual fund
portfolios of the GCG Trust, PIMCO Insurance Trust and the Warburg
Pincus Trust in which the subaccounts funded by Account A invest.
CONTRACT DATE AND CONTRACT YEAR
The date the Contract became effective is the contract date. Each 12-
month period following the contract date is a contract year.
ANNUITY START DATE
The annuity start date is the date you start receiving annuity
payments under your Contract. The Contract, like all deferred
variable annuity contracts, has two phases: the accumulation phase and
the income phase. The accumulation phase is the period between the
contract date and the annuity start date. The income phase begins
when you start receiving regular annuity payments from your Contract
on the annuity start date.
CONTRACT OWNER
You are the contract owner. You are also the annuitant unless another
annuitant is named in the application. You have the rights and
options described in the Contract. One or more persons may own the
Contract.
JOINT OWNER. For non-qualified Contracts only, joint owners may be
named in a written request before the Contract is in effect. Joint
owners may independently exercise transfers and other transactions
allowed under the Contract. All other rights of ownership must be
exercised by both owners. Joint owners own equal shares of any
benefits accruing or payments made to them. All rights of a joint
owner end at death of that owner if the other joint owner survives.
The entire interest of the deceased joint owner in the Contract will
pass to the surviving joint owner.
ANNUITANT
The annuitant is the person designated by you to be the measuring life
in determining annuity payments. The annuitant also determines the
death benefit. The annuitant's age determines when the income phase
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must begin and the amount of the annuity payments to be paid. You are
the annuitant unless you choose to name another person. The annuitant
may not be changed after the Contract is in effect.
The contract owner will receive the annuity benefits of the Contract
if the annuitant is living on the annuity start date.
BENEFICIARY
The beneficiary is named by you in a written request. The beneficiary
is the person who receives any death benefit proceeds. We pay death
benefits to the primary beneficiary (unless there are joint owners, in
which case death proceeds are payable to the surviving owner(s)).
You have the right to change beneficiaries during the annuitant's
lifetime unless you have designated an irrevocable beneficiary. When
an irrevocable beneficiary has been designated, you and the
irrevocable beneficiary may have to act together to exercise some of
the rights and options under the Contract.
Unless you, as the owner, state otherwise, all rights of a
beneficiary, including an irrevocable beneficiary, will end if he or
she dies before the annuitant. If any beneficiary dies before the
annuitant, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests. If all
beneficiaries die before the annuitant, upon the annuitant's death we
will pay the death proceeds to the owner, if living, otherwise to the
owner's estate or legal successors.
CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's
lifetime, you may transfer ownership of a non-qualified Contract. A
change in ownership may affect the amount of the death benefit and the
guaranteed death benefit. You may also change the beneficiary. All
requests for changes must be in writing and submitted to our Customer
Service Center in good order. The change will be effective as of the
day you sign the request. The change will not affect any payment made
or action taken by us before recording the change.
PURCHASE AND AVAILABILITY OF THE CONTRACT
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may make
the minimum payments of $100 per month if payroll deduction is used;
otherwise it is an aggregate of $2,000 per year. Prior approval must
be obtained from us for subsequent payments in excess of $500,000 or
for total payments in excess of $1,000,000. We reserve the right to
accept or decline any application or payment.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
CREDITING OF PREMIUM PAYMENTS
We will allocate your premium payments within 2 business days after
receipt, if the application and all information necessary for
processing the Contract are complete. In certain states we also
accept initial and additional premium payments by wire order. Wire
transmittals must be accompanied by sufficient electronically
transmitted data. We may retain premium payments for up to 5 business
days while attempting to complete an incomplete application. If the
application cannot be completed within this period, we will inform you
of the reasons for the delay. We will also return the premium payment
immediately unless you direct us to hold it until the application is
completed. Once the completed application is received, we will
allocate the payment within 2 business days. We will make inquiry to
discover any missing information related to subsequent payments. For
any subsequent premium payments, the payment will be credited at the
accumulation unit value next determined after receipt of your premium
payment.
We will allocate your initial premium payment to the subaccount(s) of
the Separate Account A selected by you. Unless otherwise changed by
you, subsequent premium payments are allocated in the same manner as
the initial premium payment.
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Once we allocate your premium payment to the subaccount(s) selected by
you, we convert the premium payment into accumulation units. We
divide the amount of the premium payment allocated to a particular
subaccount by the value of an accumulation unit for the subaccount to
determine the number of accumulation units of the subaccount to be
held in Account A with respect to the Contract. The net investment
results of each subaccount vary with its investment performance.
If your Contract is issued in a state that requires us to return your
premium payment during the free look period, then the portion of the
first premium payment that you have directed to the subaccounts will be
placed in a subaccount specifically designated by us (currently the Liquid
Asset subaccout) for the duration of the free look period. After the free
look period, we will convert your
contract value (your initial premium, plus any earnings less any
expenses) into accumulation units of the subaccounts you previously
selected. The accumulation units will be allocated based on the
accumulation unit value next computed for each subaccount.
If your premium payment was transmitted by wire order from your
broker-dealer, we will follow one of the following two procedures
after we receive and accept the wire order and investment
instructions. The procedure we follow depends on state approved
and the procedures of your broker-dealer.
(1) If either your state or broker-dealer do not permit us to issue
a Contract without an application, we reserve the right to
rescind the Contract if we do not receive and accept a properly
completed application or enrollment form within 15 days of the
premium payment. If we do not receive the application or form
within 15 days of the premium payment, we will refund the
contract value plus any charges we deducted, and the Contract
will be voided. Some states require that we return the premium
paid, in which case we will comply.
(2) If your state and broker dealer allow us to issue a Contract
without an application, we will issue and mail the Contract to
you, together with an Application Acknowledgement Statement for
your execution. Until our Customer Service Center receives the
executed Application Acknowledgement Statement, neither you nor
the broker-dealer may execute any financial transactions on
your Contract unless they are requested in writing by you.
CONTRACT VALUE
We determine your contract value on a daily basis beginning on the
contract date. Your contract value is the sum of the contract value
in each subaccount in which you are invested.
CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the contract
value in the subaccount in which you are invested is equal to the
initial premium paid and designated to be allocated to the subaccount.
On the contract date, we allocate your contract value to each
subaccount specified by you, unless the Contract is issued in a state
that requires the return of premium payments during the free look
period, in which case, the portion of your initial premium will be
allocated to a subaccount specially designated by the Company during
the free look period for this purpose (currently, the Liquid Asset
subaccount).
On each business day after the contract date, we calculate the amount
of contract value in each subaccount as follows:
(1) We take the contract value in the subaccount at the end of the
preceding business day.
(2) We multiply (1) by the subaccount's Net Investment Factor since
the preceding business day.
(3) We add (1) and (2).
(4) We add to (3) any additional premium payments, and then add or
subtract transfers to or from that subaccount.
(5) We subtract from (4) any withdrawals and any related charges,
and then subtract any contract fees, and distribution fee
(annual sales load) and premium taxes.
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CASH SURRENDER VALUE
The cash surrender value is the amount you receive when you surrender
the Contract. The cash surrender value will fluctuate daily based on
the investment results of the subaccounts in which you are invested.
We do not guarantee any minimum cash surrender value. On any date
during the accumulation phase, we calculate the cash surrender value
as follows: we start with your contract value, then we deduct any
surrender charge, any charge for premium taxes, and any other charges
incurred but not yet deducted.
SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE
You may surrender the Contract at any time while the annuitant is
living and before the annuity start date. A surrender will be
effective on the date your written request and the Contract are
received at our Customer Service Center. We will determine and pay
the cash surrender value at the price next determined after receipt of
your request. Once paid, all benefits under the Contract will be
terminated. For administrative purposes, we will transfer your money
to a specially designated subaccount (currently the Liquid Asset
subaccount) prior to processing the surrender. This transfer will
have no effect on your cash surrender value. You may receive the cash
surrender value in a single sum payment or apply it under one or more
annuity options. We will usually pay the cash surrender value within
7 days.
Consult your tax advisor regarding the tax consequences associated
with surrendering your Contract. A surrender made before you reach
age 59 1/2 may result in a 10% tax penalty. See "Federal Tax
Considerations" for more details.
ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES
We may make additional subaccounts available to you under the
Contract. These subaccounts will invest in investment portfolios we
find suitable for your Contract.
We may amend the Contract to conform to applicable laws or
governmental regulations. If we feel that investment in any of the
investment portfolios has become inappropriate to the purposes of the
Contract, we may, with approval of the SEC (and any other regulatory
agency, if required) substitute another portfolio for existing and
future investments.
We also reserve the right to: (i) deregister Account A under the 1940
Act; (ii) operate Account A as a management company under the 1940 Act
if it is operating as a unit investment trust; (iii) operate Account A
as a unit investment trust under the 1940 Act if it is operating as a
managed separate account; (iv) restrict or eliminate any voting rights
as to Account A; and (v) combine Account A with other accounts.
We will of course provide you with written notice before any of these
changes are effected.
We offer other variable annuity contracts that also invest in the same
portfolios of the Trusts. These contracts have different charges that
could effect their performance, and may offer different benefits more
suitable to your needs. To obtain more information about these other
contracts, contact our Customer Service Center or your registered
representative.
OTHER IMPORTANT PROVISIONS
See "Withdrawals," "Transfers Among Your Investments," "Death Benefit
Choices," "Charges and Fees," "The Annuity Options" and "Other
Contract Provisions" in this prospectus for information on other
important provisions in your Contract.
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WITHDRAWALS
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Any time prior to the annuity start date and before the death of the
annuitant, you may withdraw all or part of your money. Keep in mind
that if at least $100 does not remain in a subaccount, we will treat
it as a request to surrender the Contract. For Contracts issued in
Idaho, no withdrawal may be made for 30 days
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after the date of
purchase. We will terminate the Contract if a total withdrawal is
made. If any single withdrawal or the sum of withdrawals exceeds the
Free Withdrawal Amount, you will incur a surrender charge. See
"Charges and Fees-Surrender Charge for Excess Withdrawals." You
need to submit to us a written request specifying accounts from which
amounts are to be withdrawn, otherwise the withdrawal will be made on
a pro rata basis from all of the subaccounts in which you are
invested. We will pay the amount of any withdrawal from the
subaccounts within (7) calendar days of receipt of a request, unless
the "Suspension of Payments or Transfers" provision is in effect. We
will determine the contract value as of the close of business on the
day we receive your withdrawal request at our Customer Service Center.
The Contract value may be more or less than the premium payments made.
Keep in mind that a withdrawal will result in the cancellation of
Accumulation Units for each applicable subaccount of the Account A.
For administrative purposes, we will transfer your money to a
specially designated subaccount (currently, the Liquid Asset
subaccount) prior to processing the withdrawal. This transfer will
not effect the withdrawal amount you receive.
We offer the following three withdrawal options:
REGULAR WITHDRAWALS
After the free look period, you may make regular withdrawals. Each
withdrawal must be a minimum of $100 or your entire interest in
the subaccount.
SYSTEMATIC WITHDRAWALS
You may choose to receive automatically systematic withdrawals on the
15th of each month, or any other monthly date mutually agreed upon,
from your contract value in the subaccount(s). Each withdrawal
payment must be at least $100 (or the owner's entire interest in the
subaccount, if less) and is taken pro rata from the subaccount(s). We
reserve the right to charge a fee for systematic withdrawals.
Currently, however, there are no charges for systematic withdrawals.
The minimum Contract value which must remain in a subaccount after any
partial withdrawal is $100.00 or the withdrawal transaction will be
deemed a request to surrender the contract.
You may change the amount of your systematic withdrawal once each
contract year or cancel this option at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date. You may elect to have this
option begin in a contract year where a regular withdrawal has been
taken but you may not change the amount of your withdrawals in any
contract year during which you had previously taken a regular
withdrawal. You may not elect this if you are taking IRA withdrawals.
IRA WITHDRAWALS
If you have a non-Roth IRA Contract and will be at least age 70 1/2
during the current calendar year, you may elect to have distributions
made to you to satisfy requirements imposed by federal tax law. IRA
withdrawals provide payout of amounts required to be distributed by
the Internal Revenue Service rules governing mandatory distributions
under qualified plans. We will send you a notice before your
distributions commence. You may elect to take IRA withdrawals at that
time, or at a later date. You may not elect IRA withdrawals and
participate in systematic withdrawals at the same time. If you do not
elect to take IRA withdrawals, and distributions are required by
federal tax law, distributions adequate to satisfy the requirements
imposed by federal tax law may be made. Thus, if you are
participating in systematic withdrawals, distributions under that
option must be adequate to satisfy the mandatory distribution rules
imposed by federal tax law.
You may choose to receive IRA withdrawals on a monthly, quarterly or
annual basis. Under this option, you may elect payments to start as
early as 28 days after the contract date. You select the day of the
month when the withdrawals will be made, but it cannot be later than
the 28th day of the month. If no date is selected, we will make the
withdrawals on the same calendar day of the month as the contract
date.
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You may request that we calculate for you the amount that is required
to be withdrawn from your Contract each year based on the information
you give us and various choices you make. For information regarding
the calculation and choices you have to make, see the Statement of
Additional Information. The minimum dollar amount you can withdraw is
$100. When we determine the required IRA withdrawal amount for a
taxable year based on the frequency you select, if that amount is less
than $100, we will pay $100. At any time where the IRA withdrawal
amount is greater than the contract value, we will cancel the Contract
and send you the amount of the cash surrender value.
You may change the payment frequency of your IRA withdrawals once each
contract year or cancel this option at any time by sending us
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date.
CONSULT YOUR TAX ADVISOR REGARDING THE TAX CONSEQUENCES ASSOCIATED
WITH TAKING WITHDRAWALS. You are responsible for determining that
withdrawals comply with applicable law. A withdrawal made before the
taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See
"Federal Tax Considerations" for more details.
TEXAS OPTIONAL RETIREMENT PROGRAM
A Contract issued to a participant in the Texas Optional Retirement
Program ("ORP") will contain an ORP endorsement that will amend the
Contract as follows:
A) If for any reason a second year of ORP participation is not
begun, the total amount of the State of Texas' first-year
contribution will be returned to the appropriate institute of
higher education upon its request.
B) We will not pay any benefits if the participant surrenders
the Contract
or otherwise, until the participant dies, accepts retirement,
terminates employment in all Texas institutions of higher
education or attains the age of 70 1/2. The value of the
Contract may, however, be transferred to other contracts or
carriers during the period of ORP participation. A participant
in the ORP is required to obtain a certificate of termination
from the participant's employer before the value of a Contract
can be withdrawn.
REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE
The amount of the withdrawal charge on the Contracts may be reduced or
eliminated when sales of the Contracts are made to individuals or to a
group of individuals in a manner that results in savings of sales
expenses. We will determine whether we will reduce withdrawal charges will
be determined by the Company after examination of all the relevant
factors such as:
(1) The size and type of group to which sales are to be made.
Generally, the sales expenses for a larger group
are less than for a smaller group because of the ability to
implement large numbers of Contracts with fewer sales contacts.
(2) The total amount of premium payments to be received.
Per Contract sales expenses are likely to be less
on larger premium payments than on smaller ones.
(3) Any prior or existing relationship with the Company.
Per Contract sales expenses are likely to be less
when there is a prior existing relationship because of the
likelihood of implementing the Contract with fewer sales
contacts.
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The withdrawal charge may be eliminated when the Contracts are issued
to an officer, director or employee of the Company or any of its
affiliates. In no event will reductions or elimination of the
withdrawal charge be permitted where reductions or elimination will be
unfairly discriminatory to any person.
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TRANSFERS AMONG YOUR INVESTMENTS
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Prior to the annuity start date and after the free look period, you
may transfer your contract value among the subaccounts in which you
are invested at the end of the free look period until the annuity
start date. If more than 12 transfers are made in any contract year,
charge a transfer fee equal to the lesser of 2% of
the Contract value transferred or $25 for each transfer after the
twelfth transfer in a contract year. We also reserve the right to
limit the number of transfers you may make and may otherwise modify or
terminate transfer privileges if required by our business judgement or
in accordance with applicable law. The transfer fee will be deducted
from the amount which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service Center.
Any transfer fee will be deducted from the amount which is
transferred.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
DOLLAR COST AVERAGING
You may elect to participate in our dollar cost averaging program
if you have at least $500 of contract value in any subaccount. That
subaccount will serve as the source account from which we will, on a
monthly basis, automatically transfer a set dollar amount of money to
other subaccount(s) you select.
which is designed to lessen the impact of market fluctuation on your
investment. Since we transfer the same dollar amount to other
subaccounts each month, more units of a subaccount are purchased if
the value of its unit is low and less units are purchased if the value
of its unit is high. Therefore, a lower than average value per unit
may be achieved over the long term. However, we cannot guarantee
this. When you elect the dollar cost averaging program, you are
continuously investing in securities regardless of fluctuating price
levels. You should consider your tolerance for investing through
periods of fluctuating price levels.
You elect the dollar amount you want transferred under this program.
Each monthly transfer must be at least $100. You must
participate in any dollar cost averaging program for at least
five (5) months.
All dollar cost averaging transfers will be made on the 15th of each
month or another monthly date mutually agreed upon (or the next
business day if the 15th of the month is not a business day). Such
transfers currently are not taken into account in determining any
transfer fees. We reserve the right to treat dollar cost averaging
transfers as standard transfers when determining the number of
transfers in a year and imposing any applicable transfer fees. If
you, as an owner, participate in the dollar cost averaging program you
may not make automatic withdrawals of your contract value or
participate in the automatic rebalancing program.
If you do not specify the subaccounts to which the dollar amount of
the source account is to be transferred, we will transfer the money to
the subaccounts in which you are invested on a proportional basis.
If, on any transfer date, your contract value in a source account is
equal or less than the amount you have elected to have transferred,
the entire amount will be transferred and the program will end. You
may terminate the
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dollar cost averaging program at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next transfer date.
We may in the future offer additional subaccounts or withdraw any
subaccount to or from the dollar cost averaging program, or otherwise
modify, suspend or terminate this program. Of course, such change
will not affect any dollar cost averaging programs in operation at the
time.
AUTOMATIC REBALANCING
If you have at least $25,000 of contract value invested in the
subaccounts of Account A, you may elect to have your investments in
the subaccounts automatically rebalanced. We will transfer funds
under your Contract on a quarterly, semi-annual, or annual calendar
basis among the subaccounts to maintain the investment blend of your
selected subaccounts. The minimum size of any allocation must be in
full percentage points. Rebalancing does not affect any amounts that
you have allocated. The program may be used in conjunction with the
systematic withdrawal option only if withdrawals are taken pro rata.
Automatic rebalancing is not available if you participate in dollar
cost averaging. Automatic rebalancing will not take place during the
free look period. All automatic rebalancing transfers will be made on
the 15th of the month that rebalancing is requested or another monthly
date mutually agreed upon (or the next valuation date, if the 15th of
the month is not a business day).
To participate in automatic rebalancing, send satisfactory notice to
our Customer Service Center. We will begin the program on the last
business day of the period in which we receive the notice. You may
cancel the program at any time. The program will automatically
terminate if you choose to reallocate your contract value among the
subaccounts or if you make an additional premium payment or partial
withdrawal on other than a pro rata basis. Additional premium
payments and partial withdrawals effected on a pro rata basis will not
cause the automatic rebalancing program to terminate.
If you, as the Contract owner, are participating in automatic
rebalancing, such transfers currently are not taken into account in
determining any transfer fee. We reserve the right to treat automatic
rebalancing transfers as standard transfers when determining the
number of transfers in a year and imposing any applicable transfer
fees.
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DEATH BENEFIT
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DEATH BENEFIT DURING THE ACCUMULATION PERIOD
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are also the contract owner, your
beneficiary will receive a death benefit unless the beneficiary is
your surviving spouse and elects to continue the Contract. The death
benefit value is calculated at the close of the business day on which
we receive proof of death at our Customer Service Center and the
beneficiary's election regarding payment. If the
beneficiary elects not to take the death benefit at the time of death,
the death benefit in the future may be affected. If the deceased
annuitant was not an owner the proceeds may be received in a single sum
or applied to any of the annuity options within one year of death.
If the deceased annuitant not an owner then proceeds must be distributed
in accordance with the death of owner provisions below. The proceeds
may be received in a single sum or applied to any of the annuity options
within one year of death. If we do not receive a request to apply the
death benefit proceeds to an annuity option, we will make a single sum
distribution. We will generally pay death single lump sum payments
benefit proceeds within 7 days after our Customer Service Center has
received sufficient information to make the payment.
DEATH PROCEEDS
If the annuitant is less than AGE 67 at the time of purchase, the
death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals;
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(3) the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to
attained age 76.
If the annuitant is BETWEEN THE AGES OF 67 AND 75 at the time of
purchase, the death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals;
(3) The contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the death
benefit is the greatest of:
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
Please refer to the Contract for more details.
The beneficiary may choose an annuity payment option only during the
60-day period beginning with the date we receive acceptable due proof
of death.
The beneficiary may elect to have a single lump payment or choose one
of the annuity options.
The entire death proceeds must be paid within five (5) years of the
date of death unless:
(1) the beneficiary elects to have the death proceeds:
(a) payable under a payment plan over the life of the
beneficiary or over a period not extending beyond the life
expectancy of the beneficiary; and
(b) payable beginning within one year of the date of death; or
(2) if the beneficiary is the deceased owner's Spouse, the
beneficiary may elect to become the owner of the Contract and
the Contract will continue in effect.
DEATH OF THE ANNUITANT
(1) If the annuitant dies prior to the annuity start date, we will
pay the death proceeds as provided above.
(2) If the annuitant dies after the annuity start date but before
all of the proceeds payable under the Contract have been
distributed, the Company will pay the remaining proceeds to the
beneficiary(ies) according to the terms of the supplementary
contract.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplement agreement
in effect.
DEATH OF OWNER
(1) If any owner of this Contract dies before the annuity start
date, the following applies:
(a) If the new owner is the deceased owner's spouse, this
Contract will continue and, if the deceased owner was also
the annuitant, the deceased owner's spouse will also be the
annuitant.
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(b) If the new owner is someone other than the deceased owner's
spouse, the entire interest in the Contract must be
distributed to the new owner:
(i) within 5 years of the deceased owner's death
or
(ii) over the life of the new owner or over a period not
extending beyond the life expectancy of the new owner, as
long as payments begin within one year of the deceased
owner's death.
If the deceased owner was the annuitant, the new owner will be the
joint owner, if any, or if there is no joint owner, the beneficiary.
If the deceased owner was not the annuitant, the new owner will be the
joint owner, if any, or if there is no joint owner, the contingent
owner named under the Contract. If there is no surviving joint or
contingent owner, the new owner will be the deceased owner's estate.
If the new owner under (b) above dies after the deceased owner but
before the entire interest has been distributed, any remaining
distributions will be to the new owner's estate.
(2) If the deceased owner was also the annuitant, the death of
owner provision shall apply in lieu of any provision providing
payment under the Contract when the annuitant dies before the
annuity start date.
(3) If any owner dies on or after the annuity start date, but
before all proceeds payable under this Contract have been
distributed, the Company will continue payments to the
annuitant (or, if the deceased owner was the annuitant, to the
beneficiary) under the payment method in effect at the time of
the deceased owner's death.
(4) For purposes of this section, if any owner of this Contract is
not an individual, the death or change of any annuitant shall
be treated as the death of an owner.
TRUST BENEFICIARY
If a trust is named as a beneficiary but we lack proof of the
existence of the trust at the time proceeds are to be paid to the
beneficiary, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests (or to the
annuitant's estate or the annuitant's legal successors, if there are
no other beneficiaries) unless proof of the existence of such trust is
provided within six months of the annuitant's death.
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CHARGES AND FEES
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We deduct the charges described below to cover our cost and expenses,
services provided and risks assumed under the Contracts. We incur
certain costs and expenses for distributing and administrating the
Contracts, for paying the benefits payable under the Contracts and for
bearing various risks associated with the Contracts. The amount of a
charge will not always correspond to the actual costs associated. For
example, the surrender charge collected may not fully cover all of the
distribution expenses incurred by us with the service or benefits
provided. In the event there are any profits from fees and charges
deducted under the Contract, we may use such profits to finance the
distribution of contracts.
SURRENDER CHARGES DEDUCTED FROM THE CONTRACT VALUE
For purposes of determining any applicable surrender charges under
the Contract, Contract value is removed in the following order:
1) earnings
(Contract value less premium payments not withdrawn); 2) premium
payments in the Contract for more than eight years (these premium
payments are liquidated on a first in, first out
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basis); 3) additional
free amount (which is equal to 10% of the premium payments in the
Contract for less than eight years, fixed at the time of the first
withdrawal in the Contract year, plus 10% of the premium payments made
after the first withdrawal in the Contract year but before the next
Contract anniversary, less any withdrawals in the same Contract year
of premium payments less than eight years old); and 4) premium
payments in the Contract for less than eight years (these premium
payments are removed on a first in, first out basis).
SURRENDER CHARGE. We will deduct a contingent deferred sales
charge (a "surrender charge") if you surrender your Contract or if you
take a withdrawal in excess of the Free Withdrawal Amount during the
8-year period from the date we receive and accept a premium payment.
The surrender charge is based on a percentage of each premium payment.
This charge is intended to cover sales expenses that we have incurred.
We may in the future reduce or waive the surrender charge in certain
situations and will never charge more than the maximum surrender
charges. The percentage of premium payments deducted at the time of
surrender or excess withdrawal depends on the number of complete years
that have elapsed since that premium payment was made. We determine
the surrender charge as a percentage of each premium payment as
follows:
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 |7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
SURRENDER CHARGE 8% | 7% | 6% | 5% | 4% | 3% |2% |1% | 0%
FREE WITHDRAWAL AMOUNT. At any time, you may make a withdrawal
without the imposition of a surrender charge, of an amount equal to
the sum of:
o earnings (contract value less unliquidated purchase payments);
o premium payments in the contract for more than eight years, and
o an amount which is equal to 10% of the premium payments in the
Contract for less than eight years, fixed at the time of the
first withdrawal in the Contract year, plus 10% of the premium
payment made after the first withdrawal in the Contract year
(but before the next Contract anniversary, less any withdrawals
in the same Contract year of premium payments less than eight
years old).
SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a
surrender charge for excess withdrawals. We consider a withdrawal to
be an "excess withdrawal" when the amount you withdraw in any contract
year exceeds the free withdrawal amount. Where you are receiving
systematic withdrawals, any combination of regular withdrawals taken
and any systematic withdrawals expected to be received in a contract
year will be included in determining the amount of the excess
withdrawal. Such a withdrawal will be considered a partial surrender
of the Contract and we will impose a surrender charge and any
associated premium tax.
PREMIUM TAXES. We may make a charge for state and local premium
taxes depending on the contract owner's state of residence. The tax
can range from 0% to 3.5% of the premium. We have the right to change
this amount to conform with changes in the law or if the contract
owner changes state of residence.
We deduct the premium tax from your contract value on the annuity
start date. However, some jurisdictions impose a premium tax at the
time that initial and additional premiums are paid, regardless of when
the
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annuity payments begin. In those states we may defer collection
of the premium taxes from your contract value and deduct it on
surrender of the Contract, on excess withdrawals or on the annuity
start date.
ADMINISTRATIVE CHARGE. We deduct an annual administrative charge
on each Contract anniversary, or if you surrender your Contract prior
to a Contract anniversary, at the time we determine the cash surrender
value payable to you. The amount deducted is $30 per Contract. We
deduct the annual administrative charge proportionately from all
subacounts in which you are invested
TRANSFER CHARGE. You may make 12 free transfers each contract year.
We will assess a transfer equal to the lesser of 2% of the Contract value
transferred or an amount
not greater than $25 for each transfer after the twelfth transfer in a
contract year. If such a charge is assessed, we would deduct the
charge as noted in "Charges Deducted from the Contract Value" above.
The charge will not apply to any transfers due to the election of
dollar cost averaging, automatic rebalancing and transfers we make to
and from any subaccount specially designated by the Company for such
purpose. However, we reserve the right to treat multiple transfers in
a single day, auto rebalancing and dollar cost averaging as standard
transfers when determining annual transfers and imposing the Transfer
Charge.
CHARGES DEDUCTED FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE. We deducts on each
business day a Mortality and Expense Risk Charge which is equal, on an
annual basis, to 1.25% of the average daily net asset value of the
Separate Account. you have in the subaccounts. The charge is deducted
on each business day at the rate of .003446% for each day since the
previous business day.
If the Mortality and Expense Risk Charge is insufficient to cover
the actual costs, the loss will be borne by the Company. Conversely,
if the amount deducted proves more than sufficient, the excess will be
a profit to the Company.
The Mortality and Expense Risk Charge is guaranteed by the Company
and cannot be increased.
ASSET-BASED ADMINISTRATIVE CHARGE. We will deduct a daily charge
from the assets in each subaccount, to compensate us for a portion of
the administrative expenses under the Contract. The daily charge is
at a rate of .000411% (equivalent to an annual rate of 0.15%) on the
assets in each subaccount.
TRUST EXPENSES
There are fees and charges deducted from each investment portfolio of
the Trusts. Please read the respective Trust prospectus for details.
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THE ANNUITY OPTIONS
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SELECTING THE ANNUITY START DATE
You, as the owner, select an annuity start date at the date of
purchase and may elect a new annuity start date at any time by making
a written request to the Company at its Customer Service Center at
least seven days prior to the annuity start date.
The annuity start date must be at least 1 year from the contract date
but before the month immediately following the annuitant's 90th
birthday, or 10 years from the contract date, if later. If, on the
annuity start date, a surrender charge remains, the elected annuity
option must include a period certain of at least 5 years.
If you do not select an annuity start date, it will automatically
begin in the month following the annuitant's 90th birthday, or 10
years from the contract date, if later.
SELECTING A PAYMENT PLAN
On the annuity start date, we will begin making payments to the contract
owner under a payment plan. We will make these payments under the
payment plan you choose. The amount of the payments will be determined
by applying the maturity proceeds to the payment plan. pay the maturity
proceeds of the Contract to the annuitant, if living, If payment plan A,
Option 1; plan B; or plan C are elected, the maturity
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proceeds will be the Contract value less any applicable
taxes not previously deducted. If
the maturity proceeds are paid in cash or by any other method not
listed above, the maturity proceeds equal the Contract value less:
(1) any applicable taxes not previously deducted; less
(2) the withdrawal charge, if any; less
(3) the annual contract administrative charge, if any.
You must elect a payment plan in writing at least seven
(7) days before the annuity start date. If no election is made, an
automatic option of monthly income for a minimum of 120 months and as
long thereafter as the annuitant lives will be applied.
The owner chooses a plan by sending a written request to the Customer
Service Center. The Company will send the owner the proper forms to
complete. The request, when recorded at the Company's Customer
Service Center, will be in effect from the date it was signed, subject
to any payments or actions taken by the Company before the recording.
If, for any reason, the person named to receive
payments (the payee) is changed, the change will go into effect when
the request is recorded at the Company's Customer Service Center,
subject to any payments or actions taken by the Company before the
recording.
If the annuity start date occurs when the annuitant is at an advanced
age, such as over age 85, it is possible that the Contract will not be
considered an annuity for federal tax purposes. See "Federal Tax
Considerations" and the Statement of Additional Information. For a
Contract purchased in connection with a qualified plan, other than a
Roth IRA, distributions must commence not later than April 1st of the
calendar year following the calendar year in which you attain age 70
1/2, or, in some cases, retire. Distributions may be made through
annuitization or withdrawals. Consult your tax advisor.
FIXED PAYMENT PLANS
After the first Contract year, the maturity proceeds may be applied
under one or more of the payment plans described below. Payment plans not
specified below may be available only if they are approved both
by the Company and the owner.
No withdrawal charge is deducted if Plan A-Option 1; Plan B or Plan C
is elected.
A plan is available only if the periodic payment is $100 or more. If
the payee is other than a natural person (such as a corporation), a
plan will be available only with our consent.
A supplementary contract will be issued in exchange for the Contract
when payment is made under a payment plan. The effective date of a
payment plan shall be a date upon which the we and the owner mutually
agree.
The minimum interest rate for plans A and B is 3.0% a year, compounded
yearly. The minimum rates for Plan C were based on the 1983a Annuity
Table at 3.0% interest, compounded yearly. The Company may pay a
higher rate at its discretion.
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[Table with Shaded Heading]
Annuity Payment Plans
|------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The Contract value less any applicable taxes |
| not previously deducted may be left on |
| deposit with us for five (5) years. Fixed |
| payments will be made monthly, quarterly, |
| semi-annually, or annually. We do not allow |
| a monthly payment if the Contract value |
| applied under this option is less than |
| $100,000. The proceeds may not be withdrawn |
| until the end of the five (5) year period. |
| |
| Option 2 The cash surrender value may be left on |
| deposit with the Company for a specified |
| period. Interest will be paid annually. All |
| or part of the Proceeds may be withdrawn at |
| any time. |
|------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The Contract value less any applicable taxes |
| not previously deducted will be paid until |
| the proceeds, plus interest, are paid in |
| full. Payments may be paid annually or |
| monthly. The payment period cannot be more |
| than thirty (30) years nor less than five (5) |
| years. The Contract provides for a table of |
| minimum annual payments. They are based on |
| the age of the annuitant or the beneficiary. |
|------------------------------------------------------------------------|
| PLAN C. LIFE INCOME |
| The Contract value less any applicable taxes |
| not previously deducted will be paid in |
| monthly or annual payments for as long as the |
| annuitant or beneficiary, whichever is |
| appropriate, lives. The Company has the |
| right to require proof satisfactory to it of |
| the age and sex of such person and proof of |
| continuing survival of such person. A |
| minimum number of payments may be guaranteed, |
| if desired. The Contract provides for a |
| table of minimum annual payments. They are |
| based on the age of the annuitant or the |
| beneficiary. |
|------------------------------------------------------------------------|
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OTHER CONTRACT PROVISIONS
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REPORTS TO CONTRACT OWNERS
We will send you a quarterly report within 31 days after the end of
each calendar quarter. The report will show the contract value, cash
surrender value, and the death benefit as of the end of the calendar
quarter. The report will also show the allocation of your contract
value and reflects the amounts deducted from or added to the contract
value since the last report. We will also send you copies of any
shareholder reports of the investment portfolios in which Account A
invests, as well as any other reports, notices or documents we are
required by law to furnish to you.
SUSPENSION OF PAYMENTS OR TRANSFERS
The Company reserves the right to suspend or postpone payments (in
Illinois, for a period not exceeding six months) for withdrawals or
transfers for any period when:
(1) the New York Stock Exchange is closed (other than customary
weekend and holiday closings);
(2) trading on the New York Stock Exchange is restricted;
(3) an emergency exists as a result of which disposal of securities
held in the Separate Account is not reasonably practicable or
it is not reasonably practicable to determine the value of the
Separate Account's net assets;
(4) when the Company's Customer Service Center is closed; or
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(5) during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of owners;
provided that applicable rules and regulations of the
Securities and Exchange Commission will govern as to whether
the conditions described in (2) and (3) exist.
IN CASE OF ERRORS IN YOUR APPLICATION
If an age or sex given in the application or enrollment form is
misstated, the amounts payable or benefits provided by the Contract
shall be those that the premium payment would have bought at the
correct age or sex.
ASSIGNING THE CONTRACT AS COLLATERAL
You may assign a non-qualified Contract as collateral security for a
loan but understand that your rights and any beneficiary's rights may
be subject to the terms of the assignment. An assignment may have
federal tax consequences. You must give us satisfactory written
notice at our Customer Service Center in order to make or release an
assignment. We are not responsible for the validity of any
assignment.
CONTRACT CHANGES -- APPLICABLE TAX LAW
We have the right to make changes in the Contract to continue to
qualify the Contract as an annuity. You will be given advance notice
of such changes.
FREE LOOK
In most cases, you may cancel your Contract within your 10-day free
look period. We deem the free look period to expire 15 days after we
mail the Contract to you. Some states may require a longer free look
period. To cancel, you need to send your Contract to our Customer
Service Center or to the agent from whom you purchased it. We will
refund the contract value plus any charges deducted. Because of the
market risks
associated with investing in the portfolios, the contract value
returned may be greater or less than the premium payment you paid.
Some states require us to return to you the amount of the paid premium
(rather than the contract value) in which case you will not be subject
to investment risk during the free look period. In these states, your
premiums designated for investment in the subaccounts will be
allocated during the free look period to a subaccount specially
designated by the Company for this purpose (currently, the Liquid
Asset subaccount). We may, in our discretion, require that premiums
designated for investment in the subaccounts from all other states be
allocated to the specially designated subaccount during the free look
period. Your Contract is void as of the day we receive your Contract
and your request. We determine your contract value at the close of
business on the day we receive your written refund request. If you
keep your Contract after the free look period, we will put your money
in the subaccount(s) chosen by you, based on the accumulation unit
value next computed for each subaccount.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce any
surrender, administration, and mortality and expense risk charges. We
may also change the minimum initial and additional premium
requirements, or offer an alternative or reduced death benefit. See
"Reduction or Elimination of the Withdrawal Charge" for more details.
SELLING THE CONTRACT
SELLING THE CONTRACT
Directed Services, Inc. ("DSI") is distributor of the Contract issued
through Account A. The principal address of DSI is 1745 Dunwoody Drive,
West Chester, PA 19380. DSI enters into sales agreements with
broker-dealers to sell the Contracts through registered representatives
who are licensed to sell securities and variable insurance products.
These broker-dealers are registered with the SEC and are members of
the National Association of Securities Dealers, Inc. The selling
broker-dealer whose registered representative sold the contract
receives a maximum of 7.75% commission. Certain sales agreements may
provide for a combination of a certain percentage of commission at
the time of sale and an annual trail commission (which when combined
could exceed 7.75% of total premium payments).
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[Shaded Section Header]
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OTHER INFORMATION
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VOTING RIGHTS
We will vote the shares of a Trust owned by Account A according to
your instructions. However, if the Investment Company Act of 1940 or
any related regulations should change, or if interpretations of it or
related regulations should change, and we decide that we are permitted
to vote the shares of a Trust in our own right, we may decide to do
so.
We determine the number of shares that you have in a subaccount by
dividing the Contract's contract value in that subaccount by the net
asset value of one share of the portfolio in which a subaccount
invests. We count fractional votes. We will determine the number of
shares you can instruct us to vote 180 days or less before a Trust's
meeting. We will ask you for voting instructions by mail at least 10
days before the meeting. If we do not receive your instructions in
time, we will vote the shares in the same proportion as the
instructions received from all Contracts in that subaccount. We will
also vote shares we hold in Account A which are not attributable to
contract owners in the same proportion.
YEAR 2000 PROBLEM
Like other business organizations and individuals around the world,
Equitable Life and Account A could be adversely affected if the
computer systems doing the accounts processing or on which Equitable
Life and/or Account A relies do not properly process and calculate
date-related information related to the end of the year 1999. This is
commonly known as the Year 2000 (or Y2K) Problem. Equitable Life is
taking steps that it believes are reasonably designed to address the
Year 2000 Problem with respect to the computer systems that it uses
and to obtain satisfactory assurances that comparable steps are being
taken by its and Account A's major service providers. At this time,
however, we cannot guarantee that these steps will be sufficient to
avoid any adverse impact on Equitable Life and Account A.
STATE REGULATION
We are regulated by the Insurance Department of the State of Iowa. We
are also subject to the insurance laws and regulations of all
jurisdictions where we do business. The variable Contract offered by
this prospectus has been approved where required by those
jurisdictions. We are required to submit annual statements of our
operations, including financial statements, to the Insurance
Departments of the various jurisdictions in which we do business to
determine solvency and compliance with state insurance laws and
regulations.
LEGAL PROCEEDINGS
We, like other insurance companies, may be involved in lawsuits,
including class action lawsuits. In some class action and other
lawsuits involving insurers, substantial damages have been sought
and/or material settlement payments have been made. We believe that
currently there are no pending or threatened lawsuits that are
reasonably likely to have a material adverse impact on the Company or
Account A.
LEGAL MATTERS
The legal validity of the Contracts was passed on by James Mumford,
Esquire, Executive Vice President, General Counsel and Secretary of
Equitable Life Insurance Company of Iowa. Sutherland Asbill & Brennan
LLP of Washington, D.C. has provided advice on certain matters
relating to federal securities laws.
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EXPERTS
The audited financial statements of Equitable Life Insurance Company
of Iowa and Account A appearing or incorporated by reference in the
Statement of Additional Information and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth
in their reports thereon appearing or incorporated by reference in the
Statement of Additional Information and in the Registration Statement
and are included or incorporated by reference in reliance upon such
reports given upon the authority of such firm as experts in accounting
and auditing.
[Shaded Section Header]
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FEDERAL TAX CONSIDERATIONS
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The following summary provides a general description of the federal
income tax considerations associated with this Contract and does not
purport to be complete or to cover all tax situations. This
discussion is not intended as tax advice. You should consult your
counsel or other competent tax advisers for more complete information.
This discussion is based upon our understanding of the present federal
income tax laws. We do not make any representations as to the
likelihood of continuation of the present federal income tax laws or
as to how they may be interpreted by the IRS.
TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED
The Contract may be purchased on a non-tax-qualified basis or
purchased on a tax-qualified basis. Qualified Contracts are designed
for use by individuals whom premium payments are comprised solely of
proceeds from and/or contributions under retirement plans that are
intended to qualify as plans entitled to special income tax treatment
under Sections 401(a), 403(b), 408, or 408A of the Code. The ultimate
effect of federal income taxes on the amounts held under a Contract,
or annuity payments, depends on the type of retirement plan, on the
tax and employment status of the individual concerned, and on our tax
status. In addition, certain requirements must be satisfied in
purchasing a qualified Contract with proceeds from a tax-qualified
plan and receiving distributions from a qualified Contract in order to
continue receiving favorable tax treatment. Some retirement plans are
subject to distribution and other requirements that are not
incorporated into our Contract administration procedures. Contract
owners, participants and beneficiaries are responsible for determining
that contributions, distributions and other transactions with respect
to the Contract comply with applicable law. Therefore, you should
seek competent legal and tax advice regarding the suitability of a
Contract for your particular situation. The following discussion
assumes that qualified Contracts are purchased with proceeds from
and/or contributions under retirement plans that qualify for the
intended special federal income tax treatment.
TAX STATUS OF THE CONTRACTS
DIVERSIFICATION REQUIREMENTS. The Code requires that the
investments of a variable account be "adequately diversified" in order
for the Contracts to be treated as annuity contracts for federal
income tax purposes. It is intended that Account A, through the
subaccounts, will satisfy these diversification requirements.
In certain circumstances, owners of variable annuity contracts have
been considered for federal income tax purposes to be the owners of
the assets of the separate account supporting their contracts due to
their ability to exercise investment control over those assets. When
this is the case, the contract owners have been currently taxed on
income and gains attributable to the separate account assets. There
is little guidance in this area, and some features of the Contracts,
such as the flexibility of a contract owner to allocate premium
payments and transfer contract values, have not been explicitly
addressed in published rulings. While we believe that the Contracts
do not give contract owners investment control over Account A assets,
we reserve the right to modify the Contracts as necessary to prevent a
contract owner from being treated as the owner of the Account B assets
supporting the Contract.
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REQUIRED DISTRIBUTIONS. In order to be treated as an annuity
contract for federal income tax purposes, the Code requires any non-
qualified Contract to contain certain provisions specifying how your
interest in the Contract will be distributed in the event of your
death. The non-qualified Contracts contain provisions that are
intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. We
intend to review such provisions and modify them if necessary to
assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.
Other rules may apply to Qualified Contracts.
The following discussion assumes that the Contracts will qualify as
annuity contracts for federal income tax purposes.
TAX TREATMENT OF ANNUITIES
IN GENERAL. We believe that if you are a natural person you will
generally not be taxed on increases in the value of a Contract until a
distribution occurs or until annuity payments begin. (For these
purposes, the agreement to assign or pledge any portion of the
contract value, and, in the case of a qualified Contract, any portion
of an interest in the qualified plan, generally will be treated as a
distribution.)
TAXATION OF NON-QUALIFIED CONTRACTS
NON-NATURAL PERSON. The owner of any annuity contract who is not a
natural person generally must include in income any increase in the
excess of the contract value over the "investment in the contract"
(generally, the premiums or other consideration paid for the contract)
during the taxable year. There are some exceptions to this rule and a
prospective contract owner that is not a natural person may wish to
discuss these with a tax adviser. The following discussion generally
applies to Contracts owned by natural persons.
WITHDRAWALS. When a withdrawal from a non-qualified Contract
occurs, the amount received will be treated as ordinary income subject
to tax up to an amount equal to the excess (if any) of the contract
value (unreduced by the amount of any surrender charge) immediately
before the distribution over the contract owner's investment in the
Contract at that time.
In the case of a surrender under a non-qualified Contract, the amount
received generally will be taxable only to the extent it exceeds the
contract owner's investment in the Contract.
PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution
from a non-qualified Contract, there may be imposed a federal tax
penalty equal to 10% of the amount treated as income. In general,
however, there is no penalty on distributions:
O made on or after the taxpayer reaches age 59 1/2;
O made on or after the death of a contract owner;
O attributable to the taxpayer's becoming disabled; or
O made as part of a series of substantially equal periodic
payments for the life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and
special rules may be applicable in connection with the exceptions
enumerated above. A tax adviser should be consulted with regard to
exceptions from the penalty tax.
ANNUITY PAYMENTS. Although tax consequences may vary depending on
the payment option elected under an annuity contract, a portion of
each annuity payment is generally not taxed and the remainder is taxed
as ordinary income. The non-taxable portion of an annuity payment is
generally determined in a manner that is designed to allow you to
recover your investment in the Contract ratably on a tax-free basis
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over the expected stream of annuity payments, as determined when
annuity payments start. Once your investment in the Contract has been
fully recovered, however, the full amount of each annuity payment is
subject to tax as ordinary income.
TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed
from a Contract because of your death or the death of the annuitant.
Generally, such amounts are includible in the income of recipient as
follows: (i) if distributed in a lump sum, they are taxed in the same
manner as a surrender of the Contract, or (ii) if distributed under a
payment option, they are taxed in the same way as annuity payments.
TRANSFERS, ASSIGNMENTS, OR EXCHANGES, AND ANNUITY DATES OF A
CONTRACT. A transfer or assignment of ownership of a Contract, the
designation of an annuitant, the selection of certain dates for
commencement of the annuity phase, or the exchange of a Contract may
result in certain tax consequences to you that are not discussed
herein. A contract owner contemplating any such transfer, assignment
or exchange, should consult a tax advisor as to the tax consequences.
WITHHOLDING. Annuity distributions are generally subject to
withholding for the recipient's federal income tax liability.
Recipients can generally elect, however, not to have tax withheld from
distributions.
MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts
that are issued by us (or our affiliates) to the same contract owner
during any calendar year are treated as one annuity contract for
purposes of determining the amount includible in such contract owner's
income when a taxable distribution occurs.
TAXATION OF QUALIFIED CONTRACTS
The Contracts are designed for use with several types of qualified
plans. The tax rules applicable to participants in these qualified
plans vary according to the type of plan and the terms and
contributions of the plan itself. Special favorable tax treatment may
be available for certain types of contributions and distributions.
Adverse tax consequences may result from: contributions in excess of
specified limits; distributions before age 59 1/2 (subject to certain
exceptions); distributions that do not conform to specified
commencement and minimum distribution rules; and in other specified
circumstances. Therefore, no attempt is made to provide more than
general information about the use of the Contracts with the various
types of qualified retirement plans. Contract owners, annuitants, and
beneficiaries are cautioned that the rights of any person to any
benefits under these qualified retirement plans may be subject to the
terms and conditions of the plans themselves, regardless of the terms
and conditions of the Contract, but we shall not be bound by the terms
and conditions of such plans to the extent such terms contradict the
Contract, unless the Company consents.
DISTRIBUTIONS. Annuity payments are generally taxed in the same
manner as under a non-qualified Contract. When a withdrawal from a
qualified Contract occurs, a pro rata portion of the amount received
is taxable, generally based on the ratio of the contract owner's
investment in the Contract (generally, the premiums or other
consideration paid for the Contract) to the participant's total
accrued benefit balance under the retirement plan. For Qualified
Contracts, the investment in the Contract can be zero. For Roth IRAs,
distributions are generally not taxed, except as described below.
For qualified plans under Section 401(a) and 403(b), the Code requires
that distributions generally must commence no later than the later of
April 1 of the calendar year following the calendar year in which the
contract owner (or plan participant) (i) reaches age 70 1/2 or (ii)
retires, and must be made in a specified form or manner. If the plan
participant is a "5 percent owner" (as defined in the Code),
distributions generally must begin no later than April 1 of the
calendar year following the calendar year in which the contract owner
(or plan participant) reaches age 70 1/2. For IRAs described in
Section 408, distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) reaches age 70 1/2.
Roth IRAs under Section 408A do not require distributions at any time
before the contract owner's death.
29
<PAGE>
<PAGE>
WITHHOLDING. Distributions from certain qualified plans generally
are subject to withholding for the contract owner's federal income tax
liability. The withholding rates vary according to the type of
distribution and the contract owner's tax status. The contract owner
may be provided the opportunity to elect not to have tax withheld from
distributions. "Eligible rollover distributions" from section 401(a)
plans and section 403(b) tax-sheltered annuities are subject to a
mandatory federal income tax withholding of 20%. An eligible rollover
distribution is the taxable portion of any distribution from such a
plan, except certain distributions that are required by the Code or
distributions in a specified annuity form. The 20% withholding does
not apply, however, if the contract owner chooses a "direct rollover"
from the plan to another tax-qualified plan or IRA.
Brief descriptions of the various types of qualified retirement plans
in connection with a Contract follow. We will endorse the Contract as
necessary to conform it to the requirements of such plan.
REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH
We will not allow any payment of benefits provided under the Contract
which do not satisfy the requirements of Section 72(s) of the Code.
If an owner of a Non-Qualified Contract dies before the annuity start
date, the death benefit payable to the beneficiary will be distributed
as follows: (a) the death benefit must be completely distributed
within 5 years of the contract owner's date of death; or (b) the
beneficiary may elect, within the 1-year period after the contract
owner's date of death, to receive the death benefit in the form of an
annuity from us, provided that (i) such annuity is distributed in
substantially equal installments over the life of such beneficiary or
over a period not extending beyond the life expectancy of such
beneficiary; and (ii) such distributions begin not later than 1 year
after the contract owner's date of death.
Notwithstanding (a) and (b) above, if the sole contract owner's
beneficiary is the deceased owner's surviving spouse, then such spouse
may elect, to continue the Contract under the same terms as before the
contract owner's death. Upon receipt of such election from the spouse
at our Customer Service Center: (1) all rights of the spouse as
contract owner's beneficiary under the Contract in effect prior to
such election will cease; (2) the spouse will become the owner of the
Contract and will also be treated as the contingent annuitant, if none
has been named and only if the deceased owner was the annuitant; and
(3) all rights and privileges granted by the Contract or allowed by
Golden American will belong to the spouse as contract owner of the
Contract. This election will be deemed to have been made by the
spouse if such spouse makes a premium payment to the Contract or fails
to make a timely election as described in this paragraph. If the
owner's beneficiary is a nonspouse, the distribution provisions
described in subparagraphs (a) and (b) above, will apply even if the
annuitant and/or contingent annuitant are alive at the time of the
contract owner's death.
If we do not receive an election from a nonspouse owner's beneficiary
within the 1-year period after the contract owner's date of death,
then we will pay the death benefit to the owner's beneficiary in a
cash payment within five years from date of death. We will determine
the death benefit as of the date we receive proof of death. We will
make payment of the proceeds on or before the end of the 5-year period
starting on the owner's date of death. Such cash payment will be in
full settlement of all our liability under the Contract.
If the annuitant dies after the annuity start date, we will continue
to distribute any benefit payable at least as rapidly as under the
annuity option then in effect.
If the contract owner dies after the annuity start date, we will
continue to distribute any benefit payable at least as rapidly as
under the annuity option then in effect. All of the contract owner's
rights granted under the Contract or allowed by us will pass to the
contract owner's beneficiary.
If the Contract has joint owners we will consider the date of death of
the first joint owner as the death of the contract owner and the
surviving joint owner will become the contract owner of the Contract.
30
<PAGE>
<PAGE>
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits corporate employers to establish
various types of retirement plans for employees, and permits self-
employed individuals to establish these plans for themselves and their
employees. These retirement plans may permit the purchase of the
Contracts to accumulate retirement savings under the plans. Adverse
tax or other legal consequences to the plan, to the participant, or to
both may result if this Contract is assigned or transferred to any
individual as a means to provide benefit payments, unless the plan
complies with all legal requirements applicable to such benefits
before transfer of the Contract. Employers intending to use the
Contract with such plans should seek competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" or "IRA." These IRAs are subject to limits on the amount
that can be contributed, the deductible amount of the contribution,
the persons who may be eligible, and the time when distributions
commence. Also, distributions from certain other types of qualified
retirement plans may be "rolled over" or transferred on a tax-deferred
basis into an IRA. There are significant restrictions on rollover or
transfer contributions from Savings Incentive Match Plans (SIMPLE),
under which certain employers may provide contributions to IRAs on
behalf of their employees, subject to special restrictions. Employers
may establish Simplified Employee Pension (SEP) Plans to provide IRA
contributions on behalf of their employees. Sales of the Contract for
use with IRAs may be subject to special requirements of the IRS.
ROTH IRAS
Section 408A of the Code permits certain eligible individuals to
contribute to a Roth IRA. Contributions to a Roth IRA, which are
subject to certain limitations, are not deductible, and must be made
in cash or as a rollover or transfer from another Roth IRA or other
IRA. A rollover from or conversion of an IRA to a Roth IRA may be
subject to tax, and other special rules may apply. Distributions from
a Roth IRA generally are not taxed, except that, once aggregate
distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 1/2
(subject to certain exceptions) or (2) during the five taxable years
starting with the year in which the first contribution is made to the
Roth IRA.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their gross
income the premium payments made, within certain limits, on a Contract
that will provide an annuity for the employee's retirement. These
premium payments may be subject to FICA (social security) tax.
Distributions of (1) salary reduction contributions made in years
beginning after December 31, 1988; (2) earnings on those
contributions; and (3) earnings on amounts held as of the last year
beginning before January 1, 1989, are not allowed prior to age 59 1/2,
separation from service, death or disability. Salary reduction
contributions may also be distributed upon hardship, but would
generally be subject to penalties.
ENHANCED DEATH BENEFIT
The Contract includes an Enhanced Death Benefit that in some cases may
exceed the greater of the premium payments or the account value. The
Enhanced Death Benefit could be characterized as an incidental benefit,
the amount of which is limited in any Code section 401(a) pension or
profit-sharing plan or Code section 403(b) tax-sheltered annuity.
Because the Enhanced Death Benefit may exceed this limitation,
employers using the Contract in connection with such plans should
consult their tax adviser. Further, the Internal Revenue Service has
not reviewed the Contract for qualification as an IRA or Roth IRA, and
has not addressed in a ruling of general applicability whether a death
benefit provision such as the Enhanced Death Benefit provision in the
Contract comports with IRA qualification requirements.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the federal tax
consequences under the Contracts are not exhaustive, and special rules
are provided with respect to other tax situations not discussed in
this prospectus. Further, the federal income tax consequences
discussed herein reflect our understanding of current law, and the law
may change. Federal estate and state and local estate, inheritance
and other tax consequences of ownership or receipt of distributions
under a Contract depend on the individual circumstances of each
contract owner or recipient of the distribution. A competent tax
adviser should be consulted for further information.
31
<PAGE>
<PAGE>
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative change is uncertain, there is
always the possibility that the tax treatment of the Contracts could
change by legislation or other means. It is also possible that any
change could be retroactive (that is, effective before the date of the
change). A tax adviser should be consulted with respect to
legislative developments and their effect on the Contract.
32
<PAGE>
<PAGE>
{More Information Section}
<PAGE>
<PAGE>
{Financial Statements Section}
<PAGE>
<PAGE>
[Shaded Section Header]
- ----------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
- ----------------------------------------------------------------------
TABLE OF CONTENTS
ITEM PAGE
Company 1
Experts 1
Legal Opinions 1
Distributor 1
Yield Calculations for the Liquid Asset Subaccounts 1
Performance Information 2
Annuity Provisions 5
Financial Statements 5
- ----------------------------------------------------------------------
PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE
STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER
THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER; THE
ADDRESS IS SHOWN ON THE PROSPECTUS COVER.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
FOR SEPARATE ACCOUNT A.
Please Print or Type:
__________________________________________________
NAME
__________________________________________________
SOCIAL SECURITY NUMBER
__________________________________________________
STREET ADDRESS
__________________________________________________
CITY, STATE, ZIP
EQUI-SELECT 5/99
{xx}
<PAGE>
<PAGE>
This page intentionally left blank.
<PAGE>
<PAGE>
APPENDIX A
CONDENSED FINANCIAL INFORMATION
The following tables give (1) the accumulation unit value ("AUV"), (2)
the total number of accumulation units, and (3) the total accumulation
unit value, for each subaccount of Equitable of Iowa Separate Account
A available under the Contract for the indicated periods. The date on
which the subaccount became available to investors and the starting
accumulation unit value are indicated on the last row of each table.
LIQUID ASSET
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.33 [ ] $ 33,498 |
| 8/17/98 [ ] -- -- |
|-------------------------------------------------------------|
LIMITED MATURITY BOND
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.77 [ ] $ 44,067 |
| 8/17/98 [ ] -- -- |
|-------------------------------------------------------------|
GLOBAL FIXED INCOME
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $13.09 [ ] $ 12,391 |
| 1997 11.97 1,003,152 [ ] |
| 1996 11.96 705,870 [ ] |
| 1995 11.55 311,689 [ ] |
| 1994 10.06 5,098 [ ] |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
A1
<PAGE>
<PAGE>
TOTAL RETURN
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.72 [ ] $170,738 |
| 1997 16.10 9,244,077 [ ] |
| 1996 13.51 4,354,338 [ ] |
| 1995 12.05 1,312,565 [ ] |
| 1994 9.81 33,106 [ ] |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
EQUITY INCOME
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $21.94 [ ] $ 958 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
FULLY MANAGED
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $20.53 [ ] $ 16,015 |
| 1997 19.66 430,012 [ ] |
| 2/3/97 17.40 -- -- |
|-------------------------------------------------------------|
RISING DIVIDENDS
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.61 [ ] $ 66,477 |
| 1997 20.09 1,561,703 [ ] |
| 2/3/97 16.36 -- -- |
|-------------------------------------------------------------|
A2
<PAGE>
<PAGE>
GROWTH & INCOME
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.01 [ ] $ 116,862 |
| 1997 15.41 5,699,245 [ ] |
| 1996 12.49 2,228,888 [ ] |
| 4/1/96 10.00 -- -- |
|-------------------------------------------------------------|
GROWTH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.29 [ ] $ 85,976 |
| 1997 13.03 4,326,368 [ ] |
| 1996 11.42 1,238,349 [ ] |
| 4/1/96 10.00 -- -- |
|-------------------------------------------------------------|
VALUE EQUITY
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $18.31 [ ] $ 247 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
RESEARCH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.89 [ ] $180,484 |
| 1997 18.87 10,840,733 [ ] |
| 1996 15.93 4,845,240 [ ] |
| 1995 13.10 1,255,752 [ ] |
| 1994 9.72 69,177 [ ] |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
A3
<PAGE>
<PAGE>
STRATEGIC EQUITY
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.23 [ ] $ 173 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
CAPITAL APPRECIATION
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $24.50 [ ] $ 1,674 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
MID-CAP GROWTH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.43 5,924,179 $132,179 |
| 1997 18.52 4,824,991 89,359 |
| 1996 15.70 2,602,724 40,863 |
| 1995 13.21 759,597 10,034 |
| 1994 10.35 63,781 660 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
SMALL CAP
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.37 [ ] $ 20,139 |
| 1997 12.88 885,024 [ ] |
| 2/3/97 11.98 -- -- |
|-------------------------------------------------------------|
A4
<PAGE>
<PAGE>
REAL ESTATE
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $21.74 [ ] $ 251 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
HARD ASSETS
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.28 [ ] $ 341 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
DEVELOPING WORLD
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 7.28 [ ] $ [ ] |
| 6/1/98 10.00 -- -- |
|-------------------------------------------------------------|
WARBURG PINCUS INTERNATIONAL
EQUITY PORTFOLIO
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ [ ] [ ] $ 42,902 |
| 1997 9.90 3,908,832 [ ] |
| 1996 10.28 2,026,704 [ ] |
| 4/1/96 10.00 -- -- |
|-------------------------------------------------------------|
A5
<PAGE>
<PAGE>
PIMCO HIGH YIELD
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $10.08 [ ] $ 2,025 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
PIMCO STOCKSPLUS
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $11.11 [ ] $ 6,377 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
ALL-GROWTH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.43 [ ] $ 392 |
| 6/1/98 [ ] -- -- |
|-------------------------------------------------------------|
GROWTH OPPORTUNITIES
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 9.65 [ ] $ 73 |
| 6/1/98 10.00 -- -- |
|-------------------------------------------------------------|
A6
<PAGE>
<PAGE>
APPENDIX B
SURRENDER CHARGE FOR EXCESS WITHDRAWALS EXAMPLE
The following assumes you made an initial premium payment of $25,000 and
additional premium payments of $25,000 in each of the second and third
contract years, for total premium payments under the Contract of $75,000.
It also assumes a withdrawal at the beginning of the fifth contract year
of 30% of the contract year of 30% of the contract value of $90,000.
In this example, $22,500 (sum of $15,000 earnings and $75,000 * .10) is
the maximum free withdrawal amount that you may withdraw during the contract
year without a surrender charge. The total withdrawal would be $27,000
($90,000 * .30). Therefore, $4,500 ($27,000 - $22,500) is considered an
excess withdrawal of a part of the initial premium payment of $25,000 and
would be subject to a 4% surrender charge of $180 ($4,500 * .04).
B1
<PAGE>
<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
Equitable Life Insurance Company of Iowa is a stock company domiciled in Iowa
EQUI-SELECT 5/99
<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
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PROFILE OF
PRIMEELITE
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACT
MAY 1, 1999
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This Profile is a summary of some of the more important points that
you should know and consider before purchasing the Contract. The
Contract is more fully described in the full prospectus which
accompanies this Profile. Please read the prospectus carefully.
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1. THE ANNUITY CONTRACT
The Contract offered in this prospectus is an individual flexible
premium deferred variable annuity contract between you and Equitable
Life Insurance Company of Iowa ("Equitable Life", "we", "us" or the
"Company"). The Contract provides a means for you to invest on a tax-
deferred basis in one or more of 13 mutual fund investment portfolios
through our Separate Account A listed on the next page. Keep in mind
that you can lose or not make any money.
The Contract, like all deferred variable annuity contracts, has two
phases: the accumulation phase and the income phase. The
accumulation phase is the period between the contract date and the
date on which you start receiving the annuity payments under your
Contract. The amounts you accumulate during the accumulation phase
will determine the amount of annuity payments you will receive. The
income phase begins when you start receiving regular annuity payments
from your Contract on the annuity start date.
You determine (1) the amount and frequency of premium payments, (2)
the investments, (3) transfers between investments, (4) the type of
annuity to be paid after the accumulation phase, (5) the beneficiary
who will receive the death benefits, and (6) the amount and frequency
of withdrawals.
2.YOUR ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity payments are the periodic payments you will begin receiving
on the annuity start date. You may choose one of the following
annuity payment options:
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[Table with Shaded Heading]
Annuity Options
|------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The contract value, less any applicable taxes |
| not previously deducted, may be left on dep- |
| osit with the Company for five (5) years. We |
| will make fixed payments monthly, quarterly, |
| semi-annually, or annually. We do not make |
| monthly payments if the contract value |
| option is less than $100,000. You may not |
| withdraw the proceeds until the end of the |
| five (5) year period. |
| Option 2 The contract surrender value may be left on |
| deposit with us for a specified period. |
| Interest will be paid annually. All or part |
| of the proceeds may be withdrawn at any |
| time. |
|------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The contract value,less any applicable taxes |
| not previously deducted,will be paid until |
| the proceeds, plus interest, are paid in |
| full. Payments may be paid annually or |
| monthly for a period of not more than thirty |
| (30) years nor less than five (5) years. The |
| Contract provides for a table of minimum |
| annual payments.They are based on the age of |
| the annuitant or the beneficiary. |
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| PLAN C. LIFE INCOME |
| The contract value less any applicable taxes |
| not previously deducted will be paid in |
| monthly or annual payments for as long as |
| the annuitant or beneficiary, whichever is |
| appropriate, lives. We have the right to |
| require proof satisfactory to it of the age |
| and sex of such person and proof of |
| continuing survival of such person. A |
| minimum number of payments may be |
| guaranteed, if desired. The Contract |
| provides for a table of minimum annual |
| payments. They are based on the age of the |
| annuitant or the beneficiary. |
|------------------------------------------------------------------------|
3.PURCHASE (BEGINNING OF THE ACCUMULATION PHASE)
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may
make the minimum payments of $100 per month if payroll deduction is
used; otherwise it is an aggregate of $2,000 per year. Prior approval
must be obtained from us for subsequent payments in excess of
$500,000 or for total payments in excess of $1,000,000. We reserve
the right to accept or decline any application or payment. In
certain states we also accept initial and additional premium payments
by wire order. Wire transmittals must be accompanied by sufficient
electronically transmitted data.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
Who may purchase this Contract? The Contract may be purchased by
individuals as part of a personal retirement plan (a "non-qualified
Contract"), or as a Contract that qualifies for special tax treatment
when purchased as either an Individual Retirement Annuity (IRA) or in
connection with a qualified retirement plan (each a "qualified
Contract").
The Contract is designed for people seeking long-term tax-deferred
accumulation of assets, generally for retirement or other long-term
purposes. The tax-deferred feature is more attractive to people in
high federal and state tax brackets. You should not buy this
Contract if you are looking for a short-term investment or if you
cannot risk getting back less money than you put in.
4.THE INVESTMENT PORTFOLIOS
You can direct your money into any one or more of the following 13
mutual fund investment portfolios through our Separate Account A.
The investment portfolios are described in the prospectuses for the
GCG Trust, Travelers Series Fund Inc., Greenwich Street Series Fund
Inc. and Smith Barney Concert Allocation Series Inc. If you invest
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in any of the following investment portfolios, depending on market
conditions, you may make or lose money:
THE GCG TRUST
Total Return Series
Research Series
Mid-Cap Growth Series
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value Portfolio
Smith Barney International Equity Portfolio
Smith Barney High Income Portfolio
Smith Barney Money Market Portfolio
GREENWICH STREET SERIES FUND INC.
Appreciation Portfolio
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select High Growth Portfolio
Select Growth Portfolio
Select Balanced Portfolio
Select Conservative Portfolio
Select Income Portfolio
5.EXPENSES
The Contract has insurance features and investment features, and
there are costs related to each. The Company deducts an annual
contract administrative charge of $30. We also collect a mortality
and expense risk charge and an asset-based administrative charge.
These 2 charges are deducted daily directly from the amounts in the
investment portfolios. The asset-based administrative charge is
0.15% annually. The annual rate of the mortality and expense risk
charge is as follows:
Mortality & Expense Risk Charge ........... 1.25%
Asset-Based Administrative Charge.......... 0.15%
----
Total.................................... 1.40%
Each investment portfolio has charges for investment management fees
and other expenses. These charges, which vary by investment
portfolio, currently range from 0.64% to 1.24% annually (see table
below) of the portfolio's average daily net asset balance.
If you withdraw money from your Contract, or if you begin receiving
annuity payments, we may deduct a premium tax of 0%-3.5% to pay to
your state.
At any time you may make a withdrawal, without the imposition of a
withdrawal charge, of an amount equal to the sum of:
(1)earnings (Contract value less unliquidated premium payments
not withdrawn);
(2)payments in the Contract for more than eight years; and
(3)an amount which is equal to 10% of the payments in the
Contract for less than eight years, fixed at the time of the
first withdrawal in the contract year, plus 10% of the
payments made after the first withdrawal in the contract year
but before the next contract anniversary, less any withdrawals
in the same Contract year of payments less than eight years
old.
The following table shows the schedule of the surrender charge that
will apply. The surrender charge is a percent of each premium
payment.
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COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
| | | | | | | |
SURRENDER CHARGE 8%| 7%| 6%| 5%| 4%| 3%| 2%| 1%| 0%
The following table is designed to help you understand the Contract
charges. The "Total Annual Insurance Charges" column includes the
maximum mortality and expense risk charge, the asset-based
administrative charge, and reflects the annual contract
administrative charge as 0.075% (based on an average contract value
of $40,000). The "Total Annual Investment Portfolio Charges" column
reflects the portfolio charges for each portfolio and are based on
actual expenses as of December 31, 1998 for the Greenwich Street Series
Fund; as of January 31, 1999 for teh Concert Allocation Series, Inc.;
and as of October 31, 1998 for the Travelers Series Fund Inc. The GCG
Trust portfolios commenced operations during 1998 and therefore
charges have been annualized. The column "Total Annual Charges"
reflects the sum of the previous two columns. The columns under the
heading "Examples" show you how much you would pay under the Contract
for a 1-year period and for a 10-year period.
As required by the Securities and Exchange Commission, the examples
assume that you invested $1,000 in a Contract that earns 5% annually
and that you withdraw your money at the end of Year 1 or at the end
of Year 10. For Years 1 and 10, the examples show the total annual
charges assessed during that time. For these examples, the premium
tax is assumed to be 0%.
[Table with shaded heading adn shaded lines for readability]
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TOTAL ANNUAL EXAMPLES:
TOTAL ANNUAL INVESTMENT TOTAL TOTAL CHARGES AT THE END OF:
INSURANCE PORTFOLIO ANNUAL
INVESTMENT PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
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THE GCG TRUST
Total Return 1.48% 0.97% 2.45% $104.76 $277.25
Research 1.48% 0.94% 2.42% $104.46 $274.24
Mid-Cap Growth 1.48% 0.95% 2.43% $104.56 $275.25
TRAVELERS SERIES
FUND INC.
Smith Barney Large Cap
Value 1.48% 0.68% 2.16% $101.85 $247.77
Smith Barney
International Equity 1.48% 1.00% 2.48% $105.06 $280.25
Smith Barney High Income 1.48% 0.67% 2.15% $101.75 $246.74
Smith Barney Money Market 1.48% 0.64% 2.12% $101.45 $243.63
GREENWICH STREET SERIES
FUND INC.
Appreciation 1.48% 0.80% 2.28% $103.06 $260.08
SMITH BARNEY CONCERT
ALLOCATION SERIES INC.
Select High Growth 1.48% 1.25% 2.73% $107.56 $304.85
Select Growth 1.48% 1.16% 2.64% $106.66 $296.07
Select Balanced 1.48% 1.05% 2.53% $105.56 $285.22
Select Conservative 1.48% 1.07% 2.55% $105.76 $287.21
Select Income 1.48% 1.02% 2.50% $105.26 $282.24
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The "Total Annual Investment Portfolio Charges" reflect a current
expense reimbursement for the Total Return portfolio. The Year 1
examples above include a 8% surrender charge. For more detailed
information, see the fee table in the prospectus for the Contract.
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6.TAXES
Under a qualified Contract, your premiums are generally pre-tax
contributions and accumulate on a tax-deferred basis. Premiums and
earnings are generally taxed as income when you make a withdrawal or
begin receiving annuity payments, presumably when you are in a lower
tax bracket.
Under a non-qualified Contract, premiums are paid with after-tax
dollars, and any earnings will accumulate tax-deferred. You will be
taxed on these earnings, but not on premiums, when you withdraw them
from the Contract.
For owners of most qualified Contracts, when you reach age 70 1/2 (or
in some cases, retire), you will be required by federal tax laws to
begin receiving payments from your annuity or risk paying a penalty
tax. In those cases, we can calculate and pay you the minimum
required distribution amounts. If you are younger than 59 1/2 when
you take money out, in most cases, you will be charged a 10% federal
penalty tax on the amount withdrawn.
7.WITHDRAWALS
You can withdraw your money at any time during the accumulation
phase. You may elect in advance to take systematic withdrawals which
are described on page 8. Withdrawals above earnings and the free
withdrawal amount may be subject to a surrender charge. Income tax
and a penalty tax may apply to amounts withdrawn.
8.PERFORMANCE
The value of your Contract will fluctuate depending on the investment
performance of the portfolio(s) you choose. The following chart
shows average annual total return for each portfolio for the time
periods shown. These numbers reflect the deduction of the mortality
and expense risk charge, the asset-based administrative charge and
the annual contract fee, but do not reflect deductions for any
surrender charges. Please keep in mind that past performance is not
a guarantee of future results.
[Table with shaded heading adn shaded lines for readability]
YEAR YEAR YEAR
INVESTMENT PORTFOLIO 1998 1997 1996 1995
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***Managed by Massachusetts Financial
Services Company
Total Return 9.96% 19.10% 12.02% 22.74%
Research 21.26% 18.37% 21.54% 34.63%
Mid-Cap Growth 21.02% 17.91% 18.72% 27.59%
**Managed by SSBC Fund Management Inc.
Smith Barney Large Cap Value 8.22% 24.78% 17.98% --
Smith Barney International Equity 4.95% 1.20% 15.05% --
Smith Barney High Income (1.04%) 12.19% 11.50% --
Smith Barney Money Market 3.52% 3.56% 3.38% --
Appreciation 17.41% 24.55% 12.38% --
*Managed by Travelers Investment
Adviser, Inc.
Select High Growth % -- -- --
Select Growth % -- -- --
Select Balanced % -- -- --
Select Conservative % -- -- --
Select Income % -- -- --
*Year Ended January 31, 1999
**Year Ended October 31, 1999
***Year Ended December 31, 1999
9.DEATH BENEFIT
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are the contract owner, your beneficiary
will receive a death benefit unless the beneficiary is your surviving
spouse and elects to continue the Contract. The death benefit value
is calculated at the close of the business day on which we receive
proof of death at our Customer Service Center. If the beneficiary
elects not to take the death benefit at the time of death, the death
benefit in the future may be affected. The proceeds may be received
in a single sum or applied to any of the annuity options within one
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year of death. If we do not receive a request to apply the death
benefit proceeds to an annuity option, we will make a single sum
distribution. We will generally pay death single lump sum payments
benefit proceeds within 7 days after our Customer Service Center has
received sufficient information to make the payment.
The death benefit may be subject to certain mandatory distribution
rules.
DEATH PROCEEDS
If the annuitant is AGE 67 OR YOUNGER at the time of purchase, the
death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the cash surrender value; or
(4)the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to you
attaining age 76.
If the annuitant is BETWEEN THE AGES OF 68 AND 75 at the time of
purchase, the death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the cash surrender value; or
(4)The contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the
death benefit is the greatest of:
(1)the contract value; or
(2)the cash surrender value.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplemental
agreement in effect.
10.OTHER INFORMATION
FREE LOOK. If you cancel the Contract within 10 days after you
receive it, you will receive a full refund of your contract value.
For purposes of the refund during the free look period, your contract
value includes a refund of any charges deducted from your contract
value. Because of the market risks associated with investing in the
portfolios, the contract value returned may be greater or less than
the premium payment you paid. Some states require us to return to
you the amount of the paid premium (rather than the contract value)
in which case you will not be subject to investment risk during the
free look period. Also, in some states, you may be entitled to a
longer free look period. We determine your contract value at the
close of business on the day we receive your written refund request.
TRANSFERS AMONG INVESTMENT PORTFOLIOS. Prior to the annuity start
date, you may transfer your contract value among the subaccounts in
which you are invested at the end of the free look period. We
currently do not charge you for transfers made during a contract
year, but reserve the right to charge the lesser of 2% of the
Contract value transferred or $25 for each transfer after the twelfth
transfer in a contract year. We also reserve the right to limit the
number of transfers you may make and may otherwise modify or
terminate transfer privileges if required by our business judgement
or in accordance with applicable law. The transfer fee will be
deducted from the amount which is transferred.
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Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service
Center.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
NO PROBATE. In most cases, when you die, the person you choose as
your beneficiary will receive the death benefit without going through
probate.
ADDITIONAL FEATURES. This Contract has other features you may be
interested in. These include:
Dollar Cost Averaging. This is a program that allows you to
invest a fixed amount of money in the investment portfolios each
month, which may give you a lower average cost per unit over
time than a single one-time purchase. Dollar cost averaging
requires regular investments regardless of fluctuating price
levels, and does not guarantee profits or prevent losses in a
declining market. The minimum amount which may be transferred
is $100. The minimum duration of participation in any dollar
cost averaging program is currently five (5) months. An owner
must have a minimum of the amount required in the subaccount to
complete the owner's designated program in order to participate
in the dollar cost averaging program.
Systematic Withdrawals. During the accumulation phase, you
can arrange to have money sent to you at regular intervals
throughout the year. Within limits, these withdrawals will not
result in any withdrawal charge. Of course, any applicable
income and penalty taxes will apply on amounts withdrawn.
Automatic Rebalancing. If your contract value is $25,000 or
more, you may elect to have the Company automatically readjust
the money between your investment portfolios periodically to
keep the blend you select. Investments in the fixed account are
not eligible for automatic rebalancing. However, we reserve the
right to offer the program on contracts with a lesser amount.
11.INQUIRIES
If you need more information after reading this prospectus, please
contact us at:
CUSTOMER SERVICE CENTER
P.O. BOX 2700
WEST CHESTER, PENNSYLVANIA 19380
(800) 366-0066
or your registered representative.
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EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
MAY 1, 1999
INDIVIDUAL FLEXIBLE PREMIUM
DEFERRED VARIABLE ANNUITY
PRIMELITE
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This prospectus describes an Individual Flexible Premium Deferred
Variable Contract (the "Contract") offered by Equitable Life
Insurance Company of Iowa (the "Company," "we" or "our"). The
Contract is available in connection with certain retirement plans
that qualify for special federal income tax treatment ("qualified
Contracts") as well as those that do not qualify for such treatment
("non-qualified Contracts").
The Contract provides a means for you to invest your premium payments
in one or more of 13 mutual fund investment portfolios. Your contract
value will vary daily to reflect the investment performance of the
investment portfolio(s) you select. The investment portfolios
available under your Contract are:
<TABLE>
<C> <C>
MASSACHUSETTS FINANCIAL SERVICES SSBC FUND MANAGEMENT INC.
COMPANY Smith Barney Large Cap Value Portfolio
Total Return Series Smith Barney International Equity Portfolio
Research Series Smith Barney High Income Portfolio
Mid-Cap Growth Series Smith Barney Money Market Portfolio
TRAVELERS INVESTMENT ADVISER, INC. Appreciation Portfolio
Select High Growth Portfolio
Select Growth Portfolio
Select Balanced Portfolio
Select Conservative Portfolio
Select Income Portfolio
</TABLE>
The above mutual fund investment portfolios are purchased and held by
corresponding divisions of our Separate Account A. We refer to the
divisions as "subaccounts".
For Contracts sold in some states, not all subaccounts are available.
The prospectuses of the GCG Trust, Travelers Series Fund, Greenwich
Street Series Fund and Smith Barney Concert Allocation Series Inc.
may contain portfolios not currently available in connection with
your contract. If you cancel your Contract within 10 days after you
receive it and under the following circumstances, you will receive a
full refund of the greater of premium payments, less withdrawals, or
contract value: if your state requires a 10 day free look period; or
if you purchase your Contract pursuant to an Individual Retirement
Annuity. If you cancel your Contract within 10 days and your state
requires a refund of premium payments, less withdrawals, the Company
will comply. If applicable state law requires a longer free look
period, the Company will comply. In all other cases, if you cancel
the Contract within 20 days after you receive it, you will receive a
full refund of the Contract value (including charges).
This prospectus provides information that you should know before
investing and should be kept for future reference. A Statement of
Additional Information, dated May 1, 1999, has been filed with the
Securities and Exchange Commission. It is available without charge
upon request. To obtain a copy of this document, write to our
Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania
19380 or call (800) 366-0066, or access the SEC's website
(http://www.sec.gov). The table of contents of the Statement of
Additional Information ("SAI") is on the last page of this prospectus
and the SAI is made part of this prospectus by reference.
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THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
AN INVESTMENT IN THE GCG TRUST, TRAVELERS SERIES FUND INC., GREENWICH
STREET SERIES FUND AND SMITH BARNEY CONCERT ALLOCATION SERIES INC. IS
NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE
GCG TRUST, TRAVELERS SERIES FUND INC., GREENWICH STREET SERIES FUND
AND SMITH BARNEY CONCERT ALLOCATION SERIES INC.
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[Shaded Section Header]
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TABLE OF CONTENTS
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PAGE
Index of Special Terms .................................. 1
Fees and Expenses ....................................... 2
Performance Information ................................. 5
Accumulation Unit..................................... 5
Net Investment Factor................................. 5
Condensed Financial Information....................... 5
Financial Statements ................................. 5
Performance Information............................... 5
Equitable Insurance Company of Iowa...................... 6
The Trusts............................................... 7
Equitable Insurance Company of Iowa Separate Account A .. 8
The Investment Portfolios ............................... 8
Investment Objectives ................................ 8
Investment Portfolio Management Fees.................. 9
The Annuity Contract..................................... 9
Contract Date and Contract Year....................... 10
Annuity Start Date.................................... 10
Contract owner........................................ 10
Annuitant............................................. 10
Beneficiary .......................................... 10
Purchase and Availability of the Contract............. 11
Crediting of Premium Payments......................... 11
Contract value........................................ 11
Cash Surrender Value.................................. 12
Surrendering to Receive the Cash Surrender Value...... 12
Addition, Deletion or Substitution of Subaccounts
and Other Changes................................... 12
Other Important Provisions............................ 13
Withdrawals.............................................. 13
Regular Withdrawals................................... 13
Systematic Withdrawals................................ 13
IRA Withdrawals....................................... 13
Texas Optional Retirement Program .................... 14
Reduction or Elimination of the Withdrawal Charge..... 14
Transfers Among Your Investments......................... 15
Dollar Cost Averaging................................. 15
Automatic Rebalancing................................. 16
Death Benefit............................................ 16
Death Benefit During the Accumulation Phase........... 16
Death Proceeds...................................... 17
Death of the Annuitant.............................. 17
Death of Owner...................................... 18
Trust Beneficiary................................... 18
Charges and Fees......................................... 18
Charges Deducted from the Contract value.............. 19
Surrender Charge.................................... 19
Free Withdrawal Amount.............................. 19
Surrender Charge for Excess Withdrawals............. 19
Premium Taxes ...................................... 20
Administrative Charge............................... 20
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[Shaded Section Header]
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TABLE OF CONTENTS (CONTINUED)
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PAGE
Charges and Fees (continued)
Transfer Charge.................................... 20
Charges Deducted from the Subaccounts ............... 20
Mortality and Expense Risk Charge.................. 20
Asset-Based Administrative Charge.................. 20
Trust Expenses....................................... 20
The Annuity Options..................................... 21
Selecting the Annuity Start Date..................... 21
Fixed Payment Plans.................................. 21
Other Contract Provisions............................... 22
Reports to Contract Owners........................... 22
Suspension of Payments............................... 22
In Case of Errors in Your Application................ 23
Assigning the Contract as Collateral................. 23
Contract Changes-Applicable Tax Law.................. 23
Free Look............................................ 23
Group or Sponsored Arrangements...................... 23
Selling the Contract................................. 24
Other Information ...................................... 24
Voting Rights........................................ 24
Year 2000 Problem.................................... 24
State Regulation..................................... 25
Legal Proceedings.................................... 25
Legal Matters........................................ 25
Experts.............................................. 25
Federal Tax Considerations.............................. 25
More Information About Equitable Insurance Company
of Iowa............................................... 25
Financial Statements of Equitable Insurance Company
of Iowa............................................... 25
Statement of Additional Information
Table of Contents.................................... 91
Appendix A
Condensed Financial Information...................... A1
Appendix B
Surrender Charges for Excess Withdrawals Example..... B1
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[Shaded Section Header]
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INDEX OF SPECIAL TERMS
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The following special terms are used throughout this prospectus.
Refer to the page(s) listed for an explanation of each term:
SPECIAL TERM PAGE
Accumulation Unit 5
Annuitant 10
Annuity Options 4
Annuity Start Date 10
Cash Surrender Value 12
Contract Date 10
Contract owner 10
Contract value 11
Contract Year 10
Free Withdrawal Amount 19
Net Investment Factor 5
Death Benefit 21
The following terms as used in this prospectus have the same or
substituted meanings as the corresponding terms currently used in the
Contract:
TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT
Surrender Charge Withdrawal Charge
Automatic Rebalancing Automatic Portfolio Rebalancing
Systematic Withdrawals Automatic Withdrawals
Annuity Start Date Maturity Date
Premium Payment Purchase Payment
Annual Contract Administrative Charge Annual Contract Maintenance
Charge
Business Day Valuation Date
Asset-Based Administrative Charge Administrative Charge
Contract Date Issue Date
Contract Year Contract Anniversary Date
Accumulation Phase Accumulation Period
Annuity Options Payment Plans
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[Shaded Section Header]
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FEES AND EXPENSES
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CONTRACT OWNER TRANSACTION EXPENSES
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+|
SINCE PREMIUM PAYMENT | | | | | | | | |
| | | | | | | | |
SURRENDER CHARGE 8%| 7%| 6%| 5%| 4%| 3%| 2%| 1%| 0%|
TRANSFER CHARGE
There is no charge for the first 12 tranfers in a Contract Year;
thereafter the fee is the lesser of 2% of the Contract value
transferred or $25.
ANNUAL CONTRACT ADMINISTRATIVE CHARGE
Administrative Charge...................... $30
SEPARATE ACCOUNT ANNUAL CHARGES***
Mortality and Expense Risk Charge......... 1.25%
Asset-Based Administrative Charge ........ 0.15%
----
Total Separate Account Charges ........... 1.40%
***As a percentage of average assets in each subaccount.
THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of an investment portfolio or on the combined average
daily net assets of the indicated groups of portfolios):
[Shaded Sectin Header]
|---------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(3) |
|---------------------------------------------------------------------------|
| Research 0.94% 0.00% 0.94% |
| Mid-Cap Growth 0.94% 0.01% 0.95% |
| Total Return 0.94% 0.03% 0.97%(3) |
|---------------------------------------------------------------------------|
(1)Fees decline as combined assets increase. See the prospectus for
the GCG Trust for more information.
(2)Other expenses generally consist of independent trustees fees and
certain expenses associated with investing in international
markets. Other expenses are based on actual expenses for the year
ended December 31, 1998, except for portfolios that commenced
operations in 1998 where the charges have been annualized.
(3)Directed Services, Inc. is currently reimbursing expenses and
waiving management fees to maintain Total Expenses at 0.97% for
the Total Return portfolio as shown. This reimbursement will
remain in place through December 31, 1999. Without this
Agreement, and based on current estimates, Total Expenses for the
Total Return portfolio would be 0.98%.
TRAVELERS SERIES FUND INC. ANNUAL EXPENSES (as a percentage of the
average daily net assets of a portfolio):
[Shaded Sectin Header]
|--------------------------------------------------------------------------|
| MANAGEMENT OTHER TOTAL |
| PORTFOLIO FEES EXPENSES(1) EXPENSES |
|--------------------------------------------------------------------------|
| Smith Barney Large Cap Value 0.65% 0.03% 0.68% |
| Smith Barney International |
| Equity 0.90% 0.10% 1.00% |
| Smith Barney High Income 0.60% 0.07% 0.67% |
| Smith Barney Money Market 0.50% 0.14% 0.64% |
|--------------------------------------------------------------------------|
(1)Other expenses are based on actual expenses for the year
ended October 31, 1998.
2
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GREENWICH STREET SERIES FUND ANNUAL EXPENSES (as a percentage of the
average daily net assets of a portfolio):
[Shaded Sectin Header]
|--------------------------------------------------------------------------|
| MANAGEMENT OTHER TOTAL |
| PORTFOLIO FEES EXPENSES(1) EXPENSES |
|--------------------------------------------------------------------------|
| Appreciation 0.55% 0.25% 0.80% |
|--------------------------------------------------------------------------|
(1)Other expenses are based on actual expenses for the year
ended December 31, 1998.
SMITH BARNEY CONCERT ALLOCATION SERIES INC. ANNUAL EXPENSES (as a
percentage of the average daily net assets of a portfolio):
[Shaded Sectin Header]
|--------------------------------------------------------------------------|
| MANAGEMENT OTHER TOTAL |
| PORTFOLIO FEES EXPENSES(1) EXPENSES |
|--------------------------------------------------------------------------|
| Select High Growth 0.35% 0.90% 1.25% |
| Select Growth 0.35% 0.81% 1.16% |
| Select Balanced 0.35% 0.70% 1.05% |
| Select Conservative 0.35% 0.72% 1.07% |
| Select Income 0.35% 0.67% 1.02% |
|--------------------------------------------------------------------------|
(1)Other expenses are based on a weighted average of the expense
ratios of the underlying fund in which a particular portfolio was
invested on January 31, 1999. The expense ratios for the underlying
funds are based on actual expenses for each Portfolio's Class Y
shares as of the end of such funds most recent fiscal year.
The purpose of the foregoing tables is to help you understand the
various costs and expenses that you will bear directly and
indirectly. See the prospectuses of the GCG Trust, Travelers Series
Fund, Greenwich Street Series Fund and Smith Barney Concert
Allocation Series Inc. for additional information on portfolio
expenses.
Premium taxes (which currently range from 0% to 3.5% of premium
payments) may apply, but are not reflected in the tables above or in
the examples below.
3
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EXAMPLES:
In the following examples, surrender charges may apply if you choose
to annuitize within the first 8 contract years. The examples are
based on an assumed 5% annual return.
If you surrender your contract at the end of the applicable time
period, or if you choose Payment plan A - Option 2, you would pay the
following expenses for each $1,000 invested:
- --------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Total Return ................$104.76 $139.14 $175.11 $277.25
Research ....................$104.46 $138.24 $173.60 $274.24
Mid-Cap Growth...............$104.56 $138.54 $174.10 $275.25
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value.$101.85 $130.38 $160.45 $247.77
Smith Barney International
Equity.....................$105.06 $140.04 $176.61 $280.25
Smith Barney High Income.....$101.75 $130.08 $159.94 $246.74
Smith Barney Money Market....$101.45 $129.17 $158.41 $243.63
GREENWICH STREET SERIES FUND
Appreciation.................$103.06 $134.01 $166.54 $260.08
SMITH BARNEY CONCERT
ALLOCATION SERIES INC.
Select High Growth...........$107.56 $138.53 $180.05 $304.85
Select Growth................$106.66 $135.84 $175.59 $296.07
Select Balanced .............$105.56 $132.55 $170.11 $285.22
Select Conservative..........$105.76 $133.15 $171.11 $287.21
Select Income................$105.26 $131.64 $168.61 $282.24
If you do not surrender your Contract or if you annuitize on the
annuity start date under a payment plan other than Plan A, Option 2,
you would pay the following expenses for each $1,000 invested:
- --------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Total Return.................$24.76 $76.14 $130.11 $277.25
Research.....................$24.46 $75.24 $128.60 $274.24
Mid-Cap Growth...............$24.56 $75.54 $129.10 $275.65
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value.$21.85 $67.38 $115.45 $247.77
Smith Barney International
Equity.....................$25.06 $77.04 $131.61 $280.25
Smith Barney High Income.....$21.75 $67.08 $114.94 $246.74
Smith Barney Money Market....$21.45 $66.17 $113.41 $243.63
GREENWICH STREET SERIES FUND
Appreciation................$23.06 $71.01 $121.54 $260.08
SMITH BARNEY CONCERT
ALLOCATION SERIES INC.
Select High Growth...........$27.56 $75.53 $135.05 $304.85
Select Growth................$26.66 $72.84 $130.59 $296.07
Select Balanced..............$25.56 $69.55 $125.11 $285.22
Select Conservative..........$25.76 $70.15 $126.11 $287.21
Select Income................$25.26 $68.64 $123.61 $282.24
4
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The example above reflects the annual administrative charge as an
annual charge of 0.075% of assets (based on an average contract value
of $40,000). Your charge would be higher for smaller Contract values
and lower for higher Contract values. Premium taxes may apply and
are not reflected in the example.
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT.
[Shaded Sectin Header]
- --------------------------------------------------------------------------
PERFORMANCE INFORMATION
- --------------------------------------------------------------------------
ACCUMULATION UNIT
We use accumulation units to calculate the value of a Contract. Each
subaccount of Separate Account A has its own accumulation unit value.
The accumulation units are valued each business day that the New York
Stock Exchange is open for trading. Their values may increase or
decrease from day to day according to a Net Investment Factor, which
is primarily based on the investment performance of the applicable
investment portfolio. Shares in the investment portfolios are valued
at their net asset value.
THE NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance of the subaccount.
The Net Investment Factor is calculated as follows:
(1)We take the net asset value of the subaccount at the end of
each business day.
(2)We add to (1) the amount of any dividend or capital gains
distribution declared for the subaccount and reinvested in
such subaccount. We subtract from that amount a charge for
our taxes, if any.
(3)We divide (2) by the net asset value of the subaccount
at the end of the preceding business day.
(4)We then subtract the daily mortality and expense risk charge
and the daily asset-based administrative charge from each
subaccount.
Calculations for the subaccount are made on a per share basis.
CONDENSED FINANCIAL INFORMATION
Tables containing (i) the accumulation unit value history of each
subaccount of Equitable Life Insurance Company of Iowa Separate
Account A available through the Contract, offered in this prospectus
and (ii) the total investment value history of each subaccount are
presented in Appendix A - Condensed Financial Information.
FINANCIAL STATEMENTS
The audited financial statements of Equitable Life Insurance Company
of Iowa Separate Account A for the years ended December 31, 1998 and
1997 and Equitable Life Insurance Company of Iowa for the years ended
December 31, 1998, 1997 and 1996 are included in the Statement of
Additional Information.
PERFORMANCE INFORMATION
From time to time, we may advertise or include in reports to contract
owners performance information for the subaccounts of Separate
Account A, including the average annual total return performance,
yields and other nonstandard measures of performance. Such
performance data will be computed, or accompanied by performance data
computed, in accordance with standards defined by the SEC.
Except for the Smith Barney Money Market subaccount, quotations of
yield for the subaccounts will be based on all investment income per
unit (contract value divided by the accumulation unit) earned during
a given 30-day period, less expenses accrued during such period.
5
<PAGE>
<PAGE>
Information on standard total average annual return performance will
include average annual rates of total return for 1, 5 and 10 year
periods, or lesser periods depending on how long the subaccount of
Separate Account A has been in existence. We may show other total
returns for periods less than one year. Total return figures will be
based on the actual historic performance of the subaccounts of
Separate Account A, assuming an investment at the beginning of the
period, withdrawal of the investment at the end of the period, and
the deduction of all applicable portfolio and contract charges. We
may also show rates of total return on amounts invested at the
beginning of the period with no withdrawal at the end of the period.
Total return figures which assume no withdrawals at the end of the
period will reflect all recurring charges, but will not reflect the
surrender charge. In addition, we may present historic performance
data for the mutual fund investment portfolios since their inception
reduced by some or all of the fees and charges under the Contract.
Such adjusted historic performance includes data that precedes the
inception dates of the subaccounts of Separate Account A. This data
is designed to show the performance that would have resulted if the
Contract had been in existence during that time.
Current yield for the Smith Barney Money Market subaccount is based
on income received by a hypothetical investment over a given 7-day
period, less expenses accrued, and then "annualized" (i.e., assuming
that the 7-day yield would be received for 52 weeks). We calculate
"effective yield" for the Smith Barney Money Market subaccount in a
manner similar to that used to calculate yield, but when annualized,
the income earned by the investment is assumed to be reinvested. The
"effective yield" will thus be slightly higher than the "yield"
because of the compounding effect of earnings. We calculate
quotations of yield for the remaining subaccounts on all investment
income per accumulation unit earned during a given 30-day period,
after subtracting fees and expenses accrued during the period.
We may compare performance information for a subaccount to: (i) the
Standard & Poor's 500 Stock Index, Dow Jones Industrial Average,
Donoghue Money Market Institutional Averages, or any other applicable
market indices, (ii) other variable annuity separate accounts or
other investment products tracked by Lipper Analytical Services (a
widely used independent research firm which ranks mutual funds and
other investment companies), or any other rating service, and (iii)
the Consumer Price Index (measure for inflation) to assess the real
rate of return from an investment in the Contract. Our reports and
promotional literature may also contain other information including
the ranking of any subaccount based on rankings of variable annuity
separate accounts or other investment products tracked by Lipper
Analytical Services or by similar rating services.
Performance information reflects only the performance of a
hypothetical contract and should be considered in light of other
factors, including the investment objective of the investment
portfolio and market conditions. Please keep in mind that past
performance is not a guarantee of future results.
[Shaded Sectin Header]
- --------------------------------------------------------------------------
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
- --------------------------------------------------------------------------
Equitable Life Insurance Company of Iowa ("Equitable Life") was
founded in Iowa in 1867 and is the oldest life insurance company west
of the Mississippi. The Company is currently licensed to do business
in the District of Columbia and all states except New Hampshire and
New York. The Company is a wholly owned subsidiary of Equitable of
Iowa Companies, Inc. ("Equitable of Iowa"), a Delaware corporation,
which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING").
On October 24, 1997, ING acquired all interest in Equitable of Iowa
and its subsidiaries. ING, based in The Netherlands, is a global
financial services holding company with approximately $461.8 billion
in assets as of December 31, 1998.
Equitable of Iowa is the holding company for Golden American Life
Insurance Company, Directed Services, Inc., the investment manager of
the GCG Trust, and other interests. Equitable of Iowa and another ING
affiliate own ING Investment Management, LLC, a portfolio manager of
the GCG Trust. ING also owns Baring International Investment
Limited, another portfolio manager of the GCG Trust.
Our principal office is located at 909 Locust Street, Des Moines,
Iowa 50309.
6
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[Shaded Sectin Header]
- --------------------------------------------------------------------------
THE TRUSTS
- --------------------------------------------------------------------------
The GCG Trust is a mutual fund whose shares are available to separate
accounts funding variable annuity and variable life insurance
policies offered by Equitable Life. The GCG Trust also sells its
shares to separate accounts of other insurance companies, both
affiliated and not affiliated with Equitable Life. Pending SEC
approval, shares of the GCG Trust may also be sold to certain
qualified pension and retirement plans.
The Travelers Series Fund, Greenwich Street Series Fund and Smith
Barney Concert Allocation Series Inc. are also mutual funds whose
shares are available to Separate Account A which funds variable
insurance products offered by Equitable Life. The Travelers Series
Fund and Greenwich Street Series Fund shares may also be available to
other separate accounts funding variable insurance products offered
by Equitable Life. The Travelers Series Fund, Greenwich Street
Series Fund and Smith Barney Concert Allocation Series Inc. may also
sell their shares to separate accounts of other insurance companies,
both affiliated and not affiliated with Equitable Life. The
principal address of Travelers Series Fund, Greenwich Street Series
Fund and Smith Barney Concert Allocation Series is 388 Greenwich
Street, New York, New York 10013.
In the event that, due to differences in tax treatment or other
considerations, the interests of contract owners of various contracts
participating in the Trusts conflict, we, the Boards of Trustees of
the GCG Trust, Travelers Series Fund, Greenwich Street Series Fund
and Smith Barney Concert Allocation Series Inc., Directed Services,
Inc., and any other insurance companies participating in the Trusts
will monitor events to identify and resolve any material conflicts
that may arise.
YOU WILL FIND COMPLETE INFORMATION ABOUT THE GCG TRUST, TRAVELERS
SERIES FUND, GREENWICH STREET SERIES FUND AND SMITH BARNEY CONCERT
ALLOCATION SERIES IN THE ACCOMPANYING TRUSTS' PROSPECTUSES. YOU
SHOULD READ THEM CAREFULLY BEFORE INVESTING.
[Shaded Sectin Header]
- --------------------------------------------------------------------------
EQUITABLE OF IOWA SEPARATE ACCOUNT A
- --------------------------------------------------------------------------
Equitable Life Insurance Company of Iowa Separate Account A ("Account
A") was established as a separate account of the Company on July 14,
1988. It is registered with the Securities and Exchange Commission
as a unit investment trust under the Investment Company Act of 1940.
Account A is a separate investment account used for our variable
annuity contracts. We own all the assets in Account A but such
assets are kept separate from our other accounts.
Account A is divided in subaccounts. Each subaccount invests
exclusively in shares of one mutual fund investment portfolio of the
GCG Trust, Travelers Series Fund, Greenwich Street Series Fund and
Smith Barney Concert Allocation Series Inc. Each investment
portfolio has its own distinct investment objectives and policies.
Income, gains and losses, realized or unrealized, of a portfolio are
credited to or charged against the corresponding subaccount of
Account A without regard to any other income, gains or losses of the
Company. Assets equal to the reserves and other contract liabilities
with respect to each are not chargeable with liabilities arising out
of any other business of the Company. They may, however, be subject
to liabilities arising from subaccounts whose assets we attribute to
other variable annuity contracts supported by Account A. If the
assets in Account A exceed the required reserves and other
liabilities, we may transfer the excess to our general account. We
are obligated to pay all benefits and make all payments provided
under the Contracts.
We currently offer other variable annuity contracts that invest in
Account A but are not discussed in this prospectus. Account A may
also invest in other investment portfolios which are not available
under your Contract.
7
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<PAGE>
[Shaded Sectin Header]
- --------------------------------------------------------------------------
THE INVESTMENT PORTFOLIOS
- --------------------------------------------------------------------------
During the accumulation phase, you may allocate your premium payments
and contract value to any of the investment portfolios listed below.
YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE TO THE
INVESTMENT PORTFOLIOS AND MAY LOSE YOUR PRINCIPAL.
INVESTMENT OBJECTIVES
The investment objective of each investment portfolio is set forth
below. You should understand that there is no guarantee that any
portfolio will meet its investment objectives. Meeting objectives
depends on various factors, including, in certain cases, how well the
portfolio managers anticipate changing economic and market
conditions. MORE DETAILED INFORMATION ABOUT THE INVESTMENT
PORTFOLIOS CAN BE FOUND IN THE PROSPECTUSES FOR THE GCG TRUST,
TRAVELERS SERIES FUND, GREENWICH STREET SERIES FUND AND SMITH BARNEY
CONCERT ALLOCATION SERIES. YOU SHOULD READ THESE PROSPECTUSES BEFORE
INVESTING.
[Shaded Section Header]
- --------------------------------------------------------------------------
INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------
Total Return Seeks above-average income (compared to a portfolio
entirely invested in equity securities)
consistent with the prudent employment of
capital.
Invests primarily in a combination of equity
and fixed income securities.
------------------------------------------------------
Research Seeks long-term growth of capital and future income.
Invests primarily in common stocks or
securities convertible into common stocks of
companies believed to have better than average
prospects for long-term growth.
------------------------------------------------------
Mid-Cap Growth Seeks long-term growth of capital.
Invests primarily in equity securities of
companies with medium market capitalization
which the portfolio manager believes have
above-average growth potential.
------------------------------------------------------
Smith Barney
Large Cap
Value Seeks current income and long-term growth of income
and capital.
Invests primarily in common stocks of U. S.
companies having a market capitalization of
at least $5 billion at the time of investment.
------------------------------------------------------
Smith Barney
International
Equity Seeks total return on its assets from growth of capital and
income.
Invests primarily in a diversified portfolio
of equity securities of established non-U.S.
issuers.
------------------------------------------------------
Smith Barney High
Income Seeks high current income. Secondary objective:
capital appreciation.
Invests in high-yielding corporate debt
obligations and preferred stock of foreign
issuers. In addition,
the portfolio may invest up to 20% of its
assets in the securities of foreign issuers
that are denominated in currencies other than
U.S. dollars.
------------------------------------------------------
Smith Barney
MoneyMarket Seeks maximum current income and preservation of capital.
Invests in bank obligations and high quality
commercial paper, corporate obligations and
municipal obligations in addition to U.S.
government securities and related repurchase
agreements.
------------------------------------------------------
Appreciation Seeks long-term appreciation of capital.
Invests primarily in equity and equity-related
securities that are believed to afford
attractive opportunities for appreciation.
------------------------------------------------------
8
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Select High
Growth Seeks capital appreciation.
Invests a large portion of its assets in
aggressive equity mutual funds that focus on
smaller, more speculative companies as well as
mid-sized (or larger) companies with the
potential for rapid growth. A significant
portion of the portfolio may be invested in
international or emerging markets funds in
order to achieve a greater level of
diversification.
------------------------------------------------------
Select Growth Seeks long-term growth of capital.
Invests primarily in mutual funds that focus on
large-capitalization equity securities, to
provide growth. The portfolio also
invests in mutual funds that focus on small-
and middle-capitalization equity securities and
international securities. In addition, a significant
portion of the portfolio is also allocated to
funds that invest in fixed income securities,
to help reduce volatility.
------------------------------------------------------
Select Balanced Seeks long-term growth of capital and income,
placing equal emphasis on current income and
capital appreciation.
The portfolio divides its assets roughly
between equity and fixed-income mutual funds.
The equity funds are primarily large-
capitalization, dividend-paying stock funds.
The fixed-income portion of the portfolio is
mainly invested in funds that invest in U.S.
government and agency securities, as well as
mortgage-backed securities.
------------------------------------------------------
Select
Conservative Seeks income, and secondarily, long-term capital growth.
The portfolio consists primarily of taxable
fixed income funds, with a significant portion
invested in equity funds that invest primarily
in large-capitalization U.S. stocks.
------------------------------------------------------
Select Income Seeks high current income.
The portfolio allocates most of its assets to
taxable fixed-income funds designed to
generate a high level of income consistent
with safety and relative stability of
principal. A small portion of the portfolio
is invested in equity funds that invest primarily
in large-capitalization U.S. stocks.
------------------------------------------------------
INVESTMENT PORTFOLIO MANAGEMENT FEES
Directed Services, Inc. serves as the overall manager of the GCG
Trust Travelers Investment Advisor, Inc. serves as the overall
manager of the Smith Barney Concert Allocation Series and SSBC Fund
Management Inc. serves as the overall manager of Travelers Series
Fund and Greenwich Street Series Fund. Directed Services, Inc. has
retained a portfolio manager to manage the assets of the portfolios
of the GCG Trust.
Directed Services, Inc., Travelers Investment Adviser, Inc. and SSBC
Fund Management Inc. provide or procure, at their own expense, the
services necessary for the operation of the portfolios. The GCG
Trust pays Directed Services for its services a monthly fee based on
the annual rates of the average daily net assets of the investment
portfolios. Each portfolio pays its portfolio manager, for its
services a fee, payable monthly, based on the annual rates of the
average daily net assets of the portfolio. Directed Services, Inc.
(and not the GCG Trust) in turn pays each portfolio manager a monthly
fee for managing the assets of the portfolios.
Directed Services, Inc., Travelers Investment Adviser, Inc. and SSBC
Fund Management Inc. do not bear the expense of brokerage fees and
other transactional expenses for securities, taxes (if any) paid by a
portfolio, interest on borrowing, fees and expenses of the
independent trustees, and extraordinary expenses, such as litigation
or indemnification expenses.
More detailed information about each portfolio's management fees can
be found in the prospectuses for each Trust. You should read these
prospectuses before investing.
[Shaded Section Header]
- --------------------------------------------------------------------------
THE ANNUITY CONTRACT
- --------------------------------------------------------------------------
The Contract described in this prospectus is an individual flexible
premium deferred variable annuity Contract. The Contract provides a
means for you to invest in one or more of the available mutual fund
portfolios of the GCG Trust, Travelers Series Fund, Greenwich Street
Series Fund and Smith Barney Concert Allocation Series in which the
subaccounts funded by Account A invest.
9
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CONTRACT DATE AND CONTRACT YEAR
The date the Contract became effective is the contract date. Each 12-
month period following the contract date is a contract year.
ANNUITY START DATE
The annuity start date is the date you start receiving annuity
payments under your Contract. The Contract, like all deferred
variable annuity contracts, has two phases: the accumulation phase
and the income phase. The accumulation phase is the period between
the contract date and the annuity start date. The income phase
begins when you start receiving regular annuity payments from your
Contract on the annuity start date.
CONTRACT OWNER
You are the contract owner. You are also the annuitant unless
another annuitant is named in the application. You have the rights
and options described in the Contract. One or more persons may own
the Contract.
JOINT OWNER. For non-qualified Contracts only, joint owners may
be named in a written request before the Contract is in effect.
Joint owners may independently exercise transfers and other
transactions allowed under the Contract. All other rights of
ownership must be exercised by both owners. Joint owners own equal
shares of any benefits accruing or payments made to them. All rights
of a joint owner end at death of that owner if the other joint owner
survives. The entire interest of the deceased joint owner in the
Contract will pass to the surviving joint owner.
ANNUITANT
The annuitant is the person designated by you to be the measuring
life in determining annuity payments. The annuitant also determines
the death benefit. The annuitant's age determines when the income
phase must begin and the amount of the annuity payments to be paid.
You are the annuitant unless you choose to name another person. The
annuitant may not be changed after the Contract is in effect.
The contract owner will receive the annuity benefits of the Contract
if the annuitant is living on the annuity start date.
BENEFICIARY
The beneficiary is named by you in a written request. The
beneficiary is the person who receives any death benefit proceeds.
We pay death benefits to the primary beneficiary (unless there are
joint owners, in which case death proceeds are payable to the
surviving owner(s)).
You have the right to change beneficiaries during the annuitant's
lifetime unless you have designated an irrevocable beneficiary. When
an irrevocable beneficiary has been designated, you and the
irrevocable beneficiary may have to act together to exercise some of
the rights and options under the Contract.
Unless you, as the owner, state otherwise, all rights of a
beneficiary, including an irrevocable beneficiary, will end if he or
she dies before the annuitant. If any beneficiary dies before the
annuitant, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests. If all
beneficiaries die before the annuitant, upon the annuitant's death we
will pay the death proceeds to the owner, if living, otherwise to the
owner's estate or legal successors.
CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's
lifetime, you may transfer ownership of a non-qualified Contract. A
change in ownership may affect the amount of the death benefit and
the guaranteed death benefit. You may also change the beneficiary.
All requests for changes must be in writing and submitted to our
Customer Service Center in good order. The change will be effective
as of the day you sign the request. The change will not affect any
payment made or action taken by us before recording the change.
10
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PURCHASE AND AVAILABILITY OF THE CONTRACT
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may
make the minimum payments of $100 per month if payroll deduction is
used; otherwise it is an aggregate of $2,000 per year. Prior approval
must be obtained from us for subsequent payments in excess of
$500,000 or for total payments in excess of $1,000,000. We reserve
the right to accept or decline any application or payment.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
CREDITING OF PREMIUM PAYMENTS
We will allocate your premium payments within 2 business days after
receipt, if the application and all information necessary for
processing the Contract are complete. In certain states we also
accept initial and additional premium payments by wire order. Wire
transmittals must be accompanied by sufficient electronically
transmitted data. We may retain premium payments for up to 5
business days while attempting to complete an incomplete application.
If the application cannot be completed within this period, we will
inform you of the reasons for the delay. We will also return the
premium payment immediately unless you direct us to hold it until the
application is completed. Once the completed application is
received, we will allocate the payment within 2 business days. We
will make inquiry to discover any missing information related to
subsequent payments. For any subsequent premium payments, the
payment will be credited at the accumulation unit value next
determined after receipt of your premium payment.
We will allocate your initial premium payment to the subaccount(s) of
the Separate Account A as elected by you. Unless otherwise changed
by you, subsequent premium payments are allocated in the same manner
as the initial premium payment.
Once we allocate your premium payment to the subaccount(s) selected
by you, we convert the premium payment into accumulation units. We
divide the amount of the premium payment allocated to a particular
subaccount by the value of an accumulation unit for the subaccount to
determine the number of accumulation units of the subaccount to be
held in Account A with respect to the Contract. The net investment
results of each subaccount vary with its investment performance.
If your Contract is issued in a state that requires the return of
premium payments during the free look period, the initial premium
payment, which has been designated by prospective purchases to be
allocated to a subaccount other than the Smith Barney Money Market
subaccount, may initially be allocated to a subaccount specifically
designated by us during the free look period for this purpose
(currently the Smith Barney Money Market subaccount). After the free
look period, we will convert your contract value (your initial
premium, plus any earnings less any expenses) into accumulation units
of the subaccounts you previously selected. The accumulation units
will be allocated based on the accumulation unit value next computed
for each subaccount.
CONTRACT VALUE
We determine your contract value on a daily basis beginning on the
contract date. Your contract value is the sum of the contract value
in each subaccount in which you are invested.
CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the
contract value in the subaccount in which you are invested is equal
to the initial premium paid and designated to be allocated to the
subaccount. On the contract date, we allocate your contract value to
each subaccount specified by you, unless the Contract is issued in a
state that requires the return of premium payments during the free
look period, in which case, the portion of your initial premium will
be allocated to a subaccount specially designated by the Company
during the free look period for this purpose (currently, the Smith
Barney Money Market subaccount).
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On each business day after the contract date, we calculate the amount
of contract value in each subaccount as follows:
(1)We take the contract value in the subaccount at the end of the
preceding business day.
(2)We multiply (1) by the subaccount's Net Investment Factor
since the preceding business day.
(3)We add (1) and (2).
(4)We add to (3) any additional premium payments, and then add or
subtract transfers to or from that subaccount.
(5)We subtract from (4) any withdrawals and any related charges,
and then subtract any contract fees, and distribution fee
(annual sales load) and premium taxes.
CASH SURRENDER VALUE
The cash surrender value is the amount you receive when you surrender
the Contract. The cash surrender value will fluctuate daily based on
the investment results of the subaccounts in which you are invested.
We do not guarantee any minimum cash surrender value. On any date
during the accumulation phase, we calculate the cash surrender value
as follows: we start with your contract value, then we deduct any
surrender charge, any charge for premium taxes, and any other charges
incurred but not yet deducted.
SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE
You may surrender the Contract at any time while the annuitant is
living and before the annuity start date. A surrender will be
effective on the date your written request and the Contract are
received at our Customer Service Center. We will determine and pay
the cash surrender value at the price next determined after receipt
of your request. Once paid, all benefits under the Contract will be
terminated. For administrative purposes, we will transfer your money
to a specially designated subaccount (currently the Smith Barney
Money Market subaccount) prior to processing the surrender. This
transfer will have no effect on your cash surrender value. You may
receive the cash surrender value in a single sum payment or apply it
under one or more annuity options. We will usually pay the cash
surrender value within 7 days.
Consult your tax advisor regarding the tax consequences associated
with surrendering your Contract. A surrender made before you reach
age 59 1/2 may result in a 10% tax penalty. See "Federal Tax
Considerations" for more details.
ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES
We may make additional subaccounts available to you under the
Contract. These subaccounts will invest in investment portfolios we
find suitable for your Contract.
We may amend the Contract to conform to applicable laws or
governmental regulations. If we feel that investment in any of the
investment portfolios has become inappropriate to the purposes of the
Contract, we may, with approval of the SEC (and any other regulatory
agency, if required) substitute another portfolio for existing and
future investments.
We also reserve the right to: (i) deregister Account A under the 1940
Act; (ii) operate Account A as a management company under the 1940
Act if it is operating as a unit investment trust; (iii) operate
Account A as a unit investment trust under the 1940 Act if it is
operating as a managed separate account; (iv) restrict or eliminate
any voting rights as to Account A; and (v) combine Account A with
other accounts.
We will, of course, provide you with written notice before any of these
changes are effected.
We offer other variable annuity contracts that also invest in the
same portfolios of the Trusts. These contracts have different charges
that could effect their performance, and may offer different benefits
more suitable to your needs. To obtain more information about these
other contracts, contact our Customer Service Center or your
registered representative.
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OTHER IMPORTANT PROVISIONS
See "Withdrawals," "Transfers Among Your Investments," "Death Benefit,"
"Charges and Fees," "The Annuity Options" and "Other
Contract Provisions" in this prospectus for information on other
important provisions in your Contract.
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WITHDRAWALS
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Any time prior to the annuity start date and before the death of the
annuitant, you may withdraw all or part of your money. Keep in mind
that if at least $100 does not remain in a subaccount, we will treat
it as a request to surrender the Contract (for Contracts issued in
Idaho, no withdrawal may be made for 30 days after the date of
purchase). We will terminate the Contract if a total withdrawal is
made. If any single withdrawal or the sum of withdrawals exceeds the
Free Withdrawal Amount, you will incur a surrender charge. See
"Charges and Fees Surrender Charge for Excess Withdrawals." You
need to submit to us a written request specifying from which accounts
amounts are to be withdrawn, otherwise the withdrawal will be made on
a pro rata basis from all of the subaccounts in which you are
invested. We will pay the amount of any withdrawal from the
subaccounts within (7) calendar days of receipt of a request, unless
the "Suspension of Payments or Transfers" provision is in effect. We
will determine the contract value as of the close of business on the
day we receive your withdrawal request at our Customer Service
Center. The Contract value may be more or less than the premium
payments made. Keep in mind that a withdrawal will result in the
cancellation of Accumulation Units for each applicable subaccount of
the Account A.
For administrative purposes, we will transfer your money to a
specially designated subaccount (currently, the Smith Barney Money
Market subaccount) prior to processing the withdrawal. This transfer
will not effect the withdrawal amount you receive.
We offer the following three withdrawal options:
REGULAR WITHDRAWALS
After the free look period, you may make regular withdrawals. Each
withdrawal must be a minimum of $100 or the owner's entire interest
in the subaccount.
SYSTEMATIC WITHDRAWALS
You may choose to receive automatic systematic withdrawals on the
15th of each month, or any other monthly date mutually agreed upon,
from your contract value in the subaccount(s). Each withdrawal
payment must be at least $100 (or the owner's entire interest in the
subaccount, if less) and is taken pro rata from the subaccount(s).
We reserve the right to charge a fee for systematic withdrawals.
Currently, however, there are no charges for systematic withdrawals.
You must keep $100 in the subaccount or the withdrawal transaction
will be deemed a request to surrender the Contract.
You may change the amount of your systematic withdrawal once each
contract year or cancel this option at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date. You may elect to have
this option commence in a contract year where a regular withdrawal
has been taken but you may not change the amount of your withdrawals
in any contract year during which you have previously taken a regular
withdrawal. You may not elect this if you are taking IRA
withdrawals.
IRA WITHDRAWALS
If you have a non-Roth IRA Contract and will be at least age 70 1/2
during the current calendar year, you may elect to have distributions
made to you to satisfy requirements imposed by federal tax law. IRA
withdrawals provide payout of amounts required to be distributed by
the Internal Revenue Service rules governing mandatory distributions
under qualified plans. We will send you a notice before your
distributions commence. You may elect to take IRA withdrawals at
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that time, or at a later date. You may not elect IRA withdrawals and
participate in systematic withdrawals at the same time. If you do
not elect to take IRA withdrawals, and distributions are required by
federal tax law, distributions adequate to satisfy the requirements
imposed by federal tax law may be made. Thus, if you are
participating in systematic withdrawals, distributions under that
option must be adequate to satisfy the mandatory distribution rules
imposed by federal tax law.
You may choose to receive IRA withdrawals on a monthly, quarterly or
annual basis. Under this option, you may elect payments to start as
early as 28 days after the contract date. You select the day of the
month when the withdrawals will be made, but it cannot be later than
the 28th day of the month. If no date is selected, we will make the
withdrawals on the same calendar day of the month as the contract
date.
You may request that we calculate for you the amount that is required
to be withdrawn from your Contract each year based on the information
you give us and various choices you make. For information regarding
the calculation and choices you have to make, see the Statement of
Additional Information. The minimum dollar amount you can withdraw
is $100. When we determine the required IRA withdrawal amount for a
taxable year based on the frequency you select, if that amount is
less than $100, we will pay $100. At any time where the IRA
withdrawal amount is greater than the contract value, we will cancel
the Contract and send you the amount of the cash surrender value.
You may change the payment frequency of your IRA withdrawals once
each contract year or cancel this option at any time by sending us
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date.
CONSULT YOUR TAX ADVISOR REGARDING THE TAX CONSEQUENCES ASSOCIATED
WITH TAKING WITHDRAWALS. You are responsible for determining that
withdrawals comply with applicable law. A withdrawal made before the
taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See
"Federal Tax Considerations" for more details.
TEXAS OPTIONAL RETIREMENT PROGRAM
A Contract issued to a participant in the Texas Optional Retirement
Program ("ORP") will contain an ORP endorsement that will amend the
Contract as follows:
A)If for any reason a second year of ORP participation is not
begun, the total amount of the State of Texas' first-year
contribution will be returned to the appropriate institute of
higher education upon its request.
B)No benefits will be payable, through surrender of the Contract
or otherwise, until the participant dies, accepts retirement,
terminates employment in all Texas institutions of higher
education or attains the age of 70 1/2. The value of the
Contract may, however, be transferred to other contracts or
carriers during the period of ORP participation. A
participant in the ORP is required to obtain a certificate of
termination from the participant's employer before the value
of a Contract can be withdrawn.
REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE
The amount of the withdrawal charge on the Contracts may be reduced
or eliminated when sales of the Contracts are made to individuals or
to a group of individuals in a manner that results in savings of
sales expenses. The entitlement to reduction of the withdrawal charge
will be determined by the Company after examination of all the
relevant factors such as:
(1)The size and type of group to which sales are to be made will
be considered. Generally, the sales expenses for a larger
group are less than for a smaller group because of the ability
to implement large numbers of Contracts with fewer sales
contacts.
(2)The total amount of premium payments to be received will be
considered. Per Contract sales expenses are likely to be less
on larger premium payments than on smaller ones.
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(3)Any prior or existing relationship with the Company will be
considered. Per Contract sales expenses are likely to be less
when there is a prior existing relationship because of the
likelihood of implementing the Contract with fewer sales
contacts.
(4)There may be other circumstances, of which the Company is not
presently aware, which could result in reduced sales expenses.
If, after consideration of the foregoing factors, the Company
determines that there will be a reduction in sales expenses, the
Company may provide for a reduction or elimination of the withdrawal
charge.
The withdrawal charge may be eliminated when the Contracts are issued
to an officer, director or employee of the Company or any of its
affiliates. In no event will reductions or elimination of the
withdrawal charge be permitted where reductions or elimination will
be unfairly discriminatory to any person.
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TRANSFERS AMONG YOUR INVESTMENTS
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Prior to the annuity start date and after the free look period, you
may transfer your contract value among the subaccounts in which you
are invested at the end of the free look period until the annuity
start date. We currently do not charge you for transfers made during
a contract year, but reserve the right to charge the lesser of 2% of
the Contract value transferred or $25 for each transfer after the
twelfth transfer in a contract year. We also reserve the right to
limit the number of transfers you may make and may otherwise modify
or terminate transfer privileges if required by our business
judgement or in accordance with applicable law. The transfer fee
will be deducted from the amount which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service
Center. Any transfer fee will be deducted from the amount which is
transferred.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
DOLLAR COST AVERAGING
You may elect to participate in our dollar cost averaging program
which is designed to lessen the impact of market fluctuation on your
investment. Since we transfer the same dollar amount to other
subaccounts each month, more units of a subaccount are purchased if
the value of its unit is low and less units are purchased if the
value of its unit is high. Therefore, a lower than average value per
unit may be achieved over the long term. However, we cannot
guarantee this. When you elect the dollar cost averaging program,
you are continuously investing in securities regardless of
fluctuating price levels. You should consider your tolerance for
investing through periods of fluctuating price levels.
You elect the dollar amount you want transferred under this program.
Each monthly transfer must be at least $100. The minimum duration of
participating in any dollar cost averaging programs is currently five
(5) months.
If dollar cost averaging is elected, you may systematically transfer
each month amounts from any one subaccount to any subaccount.
All dollar cost averaging transfers will be made on the 15th of each
month or another monthly date mutually agreed upon (or the next
business day if the 15th of the month is not a business day). Such
transfers currently are not taken into account in determining any
transfer fees. We reserve the right to treat dollar cost averaging
transfers as standard transfers when determining the number of
transfers in a year and imposing any applicable transfer fees. If
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you, as an owner, participate in the dollar cost averaging program
you may not make automatic withdrawals of your contract value or
participate in the automatic rebalancing program.
If you do not specify the subaccounts to which the dollar amount of
the source account is to be transferred, we will transfer the money
to the subaccounts in which you are invested on a proportional basis.
If, on any transfer date, your contract value in a source account is
equal or less than the amount you have elected to have transferred,
the entire amount will be transferred and the program will end. You
may terminate the dollar cost averaging program at any time by
sending satisfactory notice to our Customer Service Center at least 7
days before the next transfer date.
We may in the future offer additional subaccounts or withdraw any
subaccount to or from the dollar cost averaging program, or otherwise
modify, suspend or terminate this program. Of course, such change
will not affect any dollar cost averaging programs in operation at
the time.
AUTOMATIC REBALANCING
If you have at least $25,000 of contract value invested in the
subaccounts of Account A, you may elect to have your investments in
the subaccounts automatically rebalanced. We will transfer funds
under your Contract on a quarterly, semi-annual, or annual calendar
basis among the subaccounts to maintain the investment blend of your
selected subaccounts. The minimum size of any allocation must be in
full percentage points. Rebalancing does not affect any amounts that
you have allocated. The program may be used in conjunction with the
systematic withdrawal option only if withdrawals are taken pro rata.
Automatic rebalancing is not available if you participate in dollar
cost averaging. Automatic rebalancing will not take place during the
free look period. All automatic rebalancing transfers will be made
on the 15th of the month that rebalancing is requested or another
monthly date mutually agreed upon (or the next valuation date, if the
15th of the month is not a business day).
To participate in automatic rebalancing, send satisfactory notice to
our Customer Service Center. We will begin the program on the last
business day of the period in which we receive the notice. You may
cancel the program at any time. The program will automatically
terminate if you choose to reallocate your contract value among the
subaccounts or if you make an additional premium payment or partial
withdrawal on other than a pro rata basis. Additional premium
payments and partial withdrawals effected on a pro rata basis will
not cause the automatic rebalancing program to terminate.
If you, as the Contract owner, are participating in automatic
rebalancing, such transfers currently are not taken into account in
determining any transfer fee. We reserve the right to treat
automatic rebalancing transfers as standard transfers when
determining the number of transfers in a year and imposing any
applicable transfer fees.
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DEATH BENEFIT
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DEATH BENEFIT DURING THE ACCUMULATION PERIOD
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are also the contract owner, your
beneficiary will receive a death benefit unless the beneficiary is
your surviving spouse and elects to continue the Contract. The death
benefit value is calculated at the close of the business day on which
we receive proof of death at our Customer Service Center. If the
beneficiary elects not to take the death benefit at the time of
death, the death benefit in the future may be affected. The proceeds
may be received in a single sum or applied to any of the annuity
options within one year of death. If we do not receive a request to
apply the death benefit proceeds to an annuity option, we will make a
single sum distribution. We will generally pay death single lump sum
payments benefit proceeds within 7 days after our Customer Service
Center has received sufficient information to make the payment.
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DEATH PROCEEDS
If the annuitant is less than AGE 67 at the time of purchase, the
death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the cash surrender value; or
(4)the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to you
attaining age 76.
If the annuitant is BETWEEN THE AGES OF 67 THROUGH 75 at the time of
purchase, the death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the cash surrender value; or
(4)The contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the
death benefit is the greatest of:
(1)the contract value; or
(2)the cash surrender value.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplement agreement
in effect.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
The beneficiary may elect to receive payment, other than in a single
sum, only during the 60-day period beginning with the date of receipt
of due proof of death on a form acceptable to the Company.
The beneficiary may elect to have a single lump payment or choose one
of the annuity options.
The entire death proceeds must be paid within five (5) years of the
date of death unless:
(1)the beneficiary elects to have the death proceeds:
(a)payable under a payment plan over the life of the
beneficiary or over a period not extending beyond the life
expectancy of the beneficiary; and
(b)payable beginning within one year of the date of death; or
(2)if the beneficiary is the deceased owner's Spouse, the
beneficiary may elect to become the owner of the Contract and
the Contract will continue in effect.
DEATH OF THE ANNUITANT
(1)If the annuitant dies prior to the annuity start date, we will
pay the death proceeds as provided above.
(2)If the annuitant dies after the annuity start date but before
all of the proceeds payable under the Contract have been
distributed, the Company will pay the remaining proceeds to
the beneficiary(ies) according to the terms of the
supplementary contract.
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DEATH OF OWNER
(1)If any owner of this Contract dies before the annuity start
date, the following applies:
(a)If the new owner is the deceased owner's spouse, this
Contract will continue and, if the deceased owner was also
the annuitant, the deceased owner's spouse will also be
the annuitant.
(b)If the new owner is someone other than the deceased owner's
spouse, the entire interest in the Contract must be
distributed to the new owner:
(i)within 5 years of the deceased owner's death
or
(ii)over the life of the new owner or over a period not extending
beyond the life expectancy of the new owner, as long as payments
begin within one year of the deceased owner's death.
If the deceased owner was the annuitant, the new owner will be the
joint owner, if any, or if there is no joint owner, the beneficiary.
If the deceased owner was not the annuitant, the new owner will be
the joint owner, if any, or if there is no joint owner, the
contingent owner named under the Contract. If there is no surviving
joint or contingent owner, the new owner will be the deceased owner's
estate.
If the new owner under (b) above dies after the deceased owner but
before the entire interest has been distributed, any remaining
distributions will be to the new owner's estate.
(2)If the deceased owner was also the annuitant, the death of
owner provision shall apply in lieu of any provision providing
payment under the Contract when the annuitant dies before the
annuity start date.
(3)If any owner dies on or after the annuity start date, but
before all proceeds payable under this Contract have been
distributed, the Company will continue payments to the
annuitant (or, if the deceased owner was the annuitant, to the
beneficiary) under the payment method in effect at the time of
the deceased owner's death.
(4)For purposes of this section, if any owner of this Contract is
not an individual, the death or change of any annuitant shall
be treated as the death of an owner.
TRUST BENEFICIARY
If a trust is named as a beneficiary but we lack proof of the
existence of the trust at the time proceeds are to be paid to the
beneficiary, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests (or to the
annuitant's estate or the annuitant's legal successors, if there are
no other beneficiaries) unless proof of the existence of such trust
is provided within six months of the annuitant's death.
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CHARGES AND FEES
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We deduct the charges described below to cover our cost and expenses,
services provided and risks assumed under the Contracts. We incur
certain costs and expenses for distributing and administrating the
Contracts, for paying the benefits payable under the Contracts and
for bearing various risks associated with the Contracts. The amount
of a charge will not always correspond to the actual costs
associated. For example, the surrender charge collected may not
fully cover all of the distribution expenses incurred by us with the
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service or benefits provided. In the event there are any profits
from fees and charges deducted under the Contract, we may use such
profits to finance the distribution of contracts.
CHARGES DEDUCTED FROM THE CONTRACT VALUE
For purposes of determining any applicable charges under the
Contract, Contract value is removed in the following order: 1)
earnings (Contract value less premium payments not withdrawn); 2)
premium payments in the Contract for more than eight years (these
premium payments are liquidated on a first in, first out basis); 3)
additional free amount (which is equal to 10% of the premium payments
in the Contract for less than eight years, fixed at the time of the
first withdrawal in the Contract year, plus 10% of the premium
payments made after the first withdrawal in the Contract year but
before the next Contract anniversary, less any withdrawals in the
same Contract year of premium payments less than eight years old);
and 4) premium payments in the Contract for less than eight years
(these premium payments are removed on a first in, first out basis).
The charges we deduct are:
SURRENDER CHARGE. We will deduct a contingent deferred sales
charge (a "surrender charge") if you surrender your Contract or if
you take a withdrawal in excess of the Free Withdrawal Amount during
the 8-year period from the date we receive and accept a premium
payment. The surrender charge is based on a percentage of each
premium payment. This charge is intended to cover sales expenses
that we have incurred. We may in the future reduce or waive the
surrender charge in certain situations and will never charge more
than the maximum surrender charges. The percentage of premium
payments deducted at the time of surrender or excess withdrawal
depends on the number of complete years that have elapsed since that
premium payment was made. We determine the surrender charge as a
percentage of each premium payment as follows:
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
| | | | | | | |
SURRENDER CHARGE 8%| 7%| 6%| 5%| 4%| 3%| 2%| 1%| 0%
FREE WITHDRAWAL AMOUNT. At any time, you may make a withdrawal
without the imposition of a surrender charge, of an amount equal to
the sum of:
o earnings (contract value less unliquidated purchase payments);
o premium payments in the contract for more than nine years, and
o an amount which is equal to 10% of the premium payments in the
Contract for less than nine years, fixed at the time of the
first withdrawal in the Contract year, plus 10% of the premium
payment made after the first withdrawal in the Contract year
(but before the next Contract anniversary, less any
withdrawals in the same Contract year of premium payments less
than eight years old).
For purposes of determining surrender charges or any other
charges under the Contract, Contract value is also removed in
the above order with any premium payments in the Contract for
less than eight years removed last.
SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a
surrender charge for excess withdrawals. We consider a withdrawal to
be an "excess withdrawal" when the amount you withdraw in any
contract year exceeds the free withdrawal amount. Where you are
receiving systematic withdrawals, any combination of regular
withdrawals taken and any systematic withdrawals expected to be
received in a contract year will be included in determining the
amount of the excess withdrawal. Such a withdrawal will be
considered a partial surrender of the Contract and we will impose a
surrender charge and any associated premium tax.
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PREMIUM TAXES. We may make a charge for state and local premium
taxes depending on the contract owner's state of residence. The tax
can range from 0% to 3.5% of the premium. We have the right to change
this amount to conform with changes in the law or if the contract
owner changes state of residence.
We deduct the premium tax from your contract value on the annuity
start date. However, some jurisdictions impose a premium tax at the
time that initial and additional premiums are paid, regardless of
when the annuity payments begin. In those states we may defer
collection of the premium taxes from your contract value and deduct
it on surrender of the Contract, on excess withdrawals or on the
annuity start date.
ADMINISTRATIVE CHARGE. We deduct an annual administrative charge
on each Contract anniversary, or if you surrender your Contract prior
to a Contract anniversary, at the time we determine the cash
surrender value payable to you. The amount deducted is $30 per
Contract. We deduct the annual administrative charge proportionately
from all subaccounts in which you are invested.
TRANSFER CHARGE. We currently do not deduct any charges for
transfers made during a contract year. We have the right, however,
to assess the lesser of 2% of the Contract value transferred or an
amount not greater than $25 for each transfer after the twelfth
transfer in a contract year. If such a charge is assessed, we would
deduct the charge as noted in "Charges Deducted from the Contract
Value" above. The charge will not apply to any transfers due to the
election of dollar cost averaging, automatic rebalancing and
transfers we make to and from any subaccount specially designated by
the Company for such purpose. However, we reserve the right to treat
multiple transfers in a single day, auto rebalancing and dollar cost
averaging as standard transfers when determining annual transfers and
imposing the Transfer Charge.
CHARGES DEDUCTED FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE. The Company deducts on each
business day a Mortality and Expense Risk Charge which is equal, on
an annual basis, to 1.25% of the average daily net asset value of the
Separate Account. The mortality risks assumed by the Company arise
from its contractual obligation to make annuity payments after the
annuity date for the life of the annuitant and to waive the
withdrawal charge in the event of the death of the annuitant. Also,
there is a mortality risk borne by the Company with respect to the
guaranteed death benefit (see "Contract Proceeds Death Proceeds").
The expense risk assumed by the Company is that all actual expenses
involved in administering the Contracts, including Contract
maintenance costs, administrative costs, mailing costs, data
processing costs, legal fees, accounting fees, filing fees and the
costs of other services may exceed the amount recovered from the
annual administrative charge.
If the Mortality and Expense Risk Charge is insufficient to cover
the actual costs, the loss will be borne by the Company. Conversely,
if the amount deducted proves more than sufficient, the excess will
be a profit to the Company.
The Mortality and Expense Risk Charge is guaranteed by the Company
and cannot be increased.
ASSET-BASED ADMINISTRATIVE CHARGE. We will deduct a daily charge
from the assets in each subaccount, to compensate us for a portion of
the administrative expenses under the Contract. The daily charge is
at a rate of .000411% (equivalent to an annual rate of 0.15%) on the
assets in each subaccount.
TRUST EXPENSES
There are fees and charges deducted from each investment portfolio of
the Trusts. Please read the respective Trust prospectus for details.
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THE ANNUITY OPTIONS
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SELECTING THE ANNUITY START DATE
You, as the owner, select an annuity start date at the date of
purchase and may elect a new annuity start date at any time by making
a written request to the Company at its Customer Service Center at
least seven days prior to the annuity start date.
On the annuity start date, we will pay the maturity proceeds of the
Contract to the annuitant, if living, subject to the terms of the
Contract. If payment plan A, Option 1; plan B; or plan C are
elected, the maturity proceeds will be the Contract value less any
applicable taxes not previously deducted. (See "Fixed Payment plans"
below.) If the maturity proceeds are paid in cash or by any other
method not listed above, the maturity proceeds equal the Contract
value less:
(1)any applicable taxes not previously deducted; less
(2)the withdrawal charge, if any; less
(3)the annual contract administrative charge, if any.
The election of a payment plan must be made in writing at least seven
(7) days prior to the annuity start date. If no election is made, an
automatic option of monthly income for a minimum of 120 months and as
long thereafter as the annuitant lives will be applied.
The annuity start date must be at least 1 year from the contract date
but before the month immediately following the annuitant's 90th
birthday, or 10 years from the contract date, if later. If, on the
annuity start date, a surrender charge remains, the elected annuity
option must include a period certain of at least 5 years.
If you do not select an annuity start date, it will automatically
begin in the month following the annuitant's 90th birthday, or 10
years from the contract date, if later.
If the annuity start date occurs when the annuitant is at an advanced
age, such as over age 85, it is possible that the Contract will not
be considered an annuity for federal tax purposes. See "Federal Tax
Considerations" and the Statement of Additional Information. For a
Contract purchased in connection with a qualified plan, other than a
Roth IRA, distributions must commence not later than April 1st of the
calendar year following the calendar year in which you attain age 70
1/2, or, in some cases, retire. Distributions may be made through
annuitization or withdrawals. Consult your tax advisor.
FIXED PAYMENT PLANS
After the first Contract year, the proceeds may be applied under one
or more of the payment plans described below. payment plans not
specified in the Contract are available only if they are approved
both by the Company and the owner. The owner chooses a payment plan
during the annuitant's lifetime. This choice can be changed during
the life of the annuitant prior to the annuity start date. If the
owner has not chosen a plan prior to the annuitant's death, the
automatic option of monthly income for a minimum of 120 months and as
long thereafter as the payee lives will be applied.
The owner chooses a plan by sending a written request to the Customer
Service Center. The Company will send the owner the proper forms to
complete. The request, when recorded at the Company's Customer
Service Center, will be in effect from the date it was signed,
subject to any payments or actions taken by the Company before the
recording. Any change must be requested at least seven (7) days
prior to the annuity start date. If, for any reason, the person
named to receive payments (the payee) is changed, the change will go
into effect when the request is recorded at the Company's Customer
Service Center, subject to any payments or actions taken by the
Company before the recording.
No withdrawal charge is deducted if Plan A-Option 1; Plan B or Plan C
is elected.
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A plan is available only if the periodic payment is $100 or more. If
the payee is other than a natural person (such as a corporation), a
plan will be available only with our consent.
A supplementary contract will be issued in exchange for the Contract
when payment is made under a payment plan. The effective date of a
payment plan shall be a date upon which the we and the owner mutually
agree.
The minimum interest rate for plans A and B is 3.0% a year,
compounded yearly. The minimum rates for Plan C were based on the
1983a Annuity Table at 3.0% interest, compounded yearly. The Company
may pay a higher rate at its discretion.
|-------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The Contract value less any applicable taxes |
| not previously deducted may be left on deposit |
| with us for five (5) years. Fixed payments |
| will be made monthly, quarterly, semi- |
| annually, or annually. We do not allow a |
| monthly payment if the Contract value |
| applied under this option is less than |
| $100,000. The proceeds may not be withdrawn |
| until the end of the five (5) year period. |
| |
| Option 2 The cash surrender value may be left on deposit |
| with the Company for a specified period. |
| Interest will be paid annually. All or part of |
| the Proceeds may be withdrawn at any time. |
|-------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The Contract value less any applicable taxes |
| not previously deducted will be paid until the |
| proceeds, plus interest, are paid in full. |
| Payments may be paid annually or monthly. |
| The payment period cannot be more than |
| thirty (30) years nor less than five (5) |
| years. The Contract provides for a table of |
| minimum annual payments. They are based on |
| the age of the annuitant or the beneficiary. |
|-------------------------------------------------------------------------|
| PLAN C. LIFE INCOME |
| The Contract value less any applicable taxes |
| not previously deducted will be paid in monthly |
| or annual payments for as long as the |
| annuitant or beneficiary, whichever is |
| appropriate, lives. The Company has the |
| right to require proof satisfactory to it of |
| the age and sex of such person and proof of |
| continuing survival of such erson. A minimum |
| number of payments may be guaranteed, |
| if desired. The Contract provides for a table |
| of minimum annual payments. They are based on |
| the age of the annuitant or the beneficiary. |
|-------------------------------------------------------------------------|
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OTHER CONTRACT PROVISIONS
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REPORTS TO CONTRACT OWNERS
We will send you a quarterly report within 31 days after the end of
each calendar quarter. The report will show the contract value, cash
surrender value, and the death benefit as of the end of the calendar
quarter. The report will also show the allocation of your contract
value and reflects the amounts deducted from or added to the contract
value since the last report. We will also send you copies of any
shareholder reports of the investment portfolios in which Account A
invests, as well as any other reports, notices or documents we are
required by law to furnish to you.
SUSPENSION OF PAYMENTS OR TRANSFERS
The Company reserves the right to suspend or postpone payments (in
Illinois, for a period not exceeding six months) for withdrawals or
transfers for any period when:
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(1)the New York Stock Exchange is closed (other than customary
weekend and holiday closings);
(2)trading on the New York Stock Exchange is restricted;
(3)an emergency exists as a result of which disposal of
securities held in the Separate Account is not reasonably
practicable or it is not reasonably practicable to determine
the value of the Separate Account's net assets;
(4)when the Company's Customer Service Center is closed; or
(5)during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of owners;
provided that applicable rules and regulations of the
Securities and Exchange Commission will govern as to whether
the conditions described in (2) and (3) exist.
IN CASE OF ERRORS IN YOUR APPLICATION
If an age or sex given in the application or enrollment form is
misstated, the amounts payable or benefits provided by the Contract
shall be those that the premium payment would have bought at the
correct age or sex.
ASSIGNING THE CONTRACT AS COLLATERAL
You may assign a non-qualified Contract as collateral security for a
loan but understand that your rights and any beneficiary's rights may
be subject to the terms of the assignment. An assignment may have
federal tax consequences. You must give us satisfactory written
notice at our Customer Service Center in order to make or release an
assignment. We are not responsible for the validity of any
assignment.
CONTRACT CHANGES APPLICABLE TAX LAW
We have the right to make changes in the Contract to continue to
qualify the Contract as an annuity. You will be given advance notice
of such changes.
FREE LOOK
In most cases, you may cancel your Contract within your 10-day free
look period. We deem the free look period to expire 15 days after we
mail the Contract to you. Some states may require a longer free look
period. To cancel, you need to send your Contract to our Customer
Service Center or to the agent from whom you purchased it. We will
refund the contract value. For purposes of the refund during the
free look period, your contract value includes a refund of any
charges deducted from your contract value. Because of the market
risks associated with investing in the portfolios, the contract value
returned may be greater or less than the premium payment you paid.
Some states require us to return to you the amount of the paid
premium (rather than the contract value) in which case you will not
be subject to investment risk during the free look period. In these
states, your premiums designated for investment in the subaccounts
will be allocated during the free look period to a subaccount
specially designated by the Company for this purpose (currently, the
Smith Barney Money Market subaccount). We may, in our discretion,
require that premiums designated for investment in the subaccounts
from all other states be allocated to the specially designated
subaccount during the free look period. Your Contract is void as of
the day we receive your Contract and your request. We determine your
contract value at the close of business on the day we receive your
written refund request. If you keep your Contract after the free
look period, we will put your money in the subaccount(s) chosen by
you, based on the accumulation unit value next computed for each
subaccount.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce any
surrender, administration, and mortality and expense risk charges.
We may also change the minimum initial and additional premium
requirements, or offer an alternative or reduced death benefit. See
"Reduction or Elimination of the Withdrawal Charge" for more details.
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SELLING THE CONTRACT
Directed Services, Inc. ("DSI") is distributor of the Contract issued
through Account A. The principal address of DSI is 1745 Dunwoody Drive,
West Chester, PA 19380. DSI enters into sales agreements with
broker-dealers to sell the Contracts through registered representatives
who are licensed to sell securities and variable insurance products.
These broker-dealers are registered with the SEC and are members of
the National Association of Securities Dealers, Inc. The selling
broker-dealer whose registered representative sold the contract
receives a maximum of 7.75% commission. Certain sales agreements may
provide for a combination of a certain percentage of commission at
the time of sale and an annual trail commission (which when combined
could exceed 7.75% of total premium payments).
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OTHER INFORMATION
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VOTING RIGHTS
We will vote the shares of a Trust owned by Account A according to
your instructions. However, if the Investment Company Act of 1940 or
any related regulations should change, or if interpretations of it or
related regulations should change, and we decide that we are
permitted to vote the shares of a Trust in our own right, we may
decide to do so.
We determine the number of shares that you have in a subaccount by
dividing the Contract's contract value in that subaccount by the net
asset value of one share of the portfolio in which a subaccount
invests. We count fractional votes. We will determine the number of
shares you can instruct us to vote 180 days or less before a Trust's
meeting. We will ask you for voting instructions by mail at least 10
days before the meeting. If we do not receive your instructions in
time, we will vote the shares in the same proportion as the
instructions received from all Contracts in that subaccount. We will
also vote shares we hold in Account A which are not attributable to
contract owners in the same proportion.
YEAR 2000 PROBLEM
Like other business organizations and individuals around the world,
Equitable Life and Account A could be adversely affected if the
computer systems doing the accounts processing or on which Equitable
Life and/or Account A relies do not properly process and calculate
date-related information related to the end of the year 1999. This
is commonly known as the Year 2000 (or Y2K) Problem. Equitable Life
is taking steps that it believes are reasonably designed to address
the Year 2000 Problem with respect to the computer systems that it
uses and to obtain satisfactory assurances that comparable steps are
being taken by its and Account A's major service providers. At this
time, however, we cannot guarantee that these steps will be
sufficient to avoid any adverse impact on Equitable Life and Account
A.
STATE REGULATION
We are regulated by the Insurance Department of the State of Iowa.
We are also subject to the insurance laws and regulations of all
jurisdictions where we do business. The variable Contract offered by
this prospectus has been approved where required by those
jurisdictions. We are required to submit annual statements of our
operations, including financial statements, to the Insurance
Departments of the various jurisdictions in which we do business to
determine solvency and compliance with state insurance laws and
regulations.
LEGAL PROCEEDINGS
We, like other insurance companies, may be involved in lawsuits,
including class action lawsuits. In some class action and other
lawsuits involving insurers, substantial damages have been sought
and/or material settlement payments have been made. We believe that
currently there are no pending or threatened lawsuits that are
reasonably likely to have a material adverse impact on the Company or
Account A.
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LEGAL MATTERS
The legal validity of the Contracts was passed on by James Mumford,
Esquire, Executive Vice President, General Counsel and Secretary of
Equitable Life Insurance Company of Iowa. Sutherland Asbill &
Brennan LLP of Washington, D.C. has provided advice on certain
matters relating to federal securities laws.
EXPERTS
The audited financial statements of Equitable Life Insurance Company
of Iowa and Account A appearing or incorporated by reference in the
Statement of Additional Information and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth
in their reports thereon appearing or incorporated by reference in
the Statement of Additional Information and in the Registration
Statement and are included or incorporated by reference in reliance
upon such reports given upon the authority of such firm as experts in
accounting and auditing.
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FEDERAL TAX CONSIDERATIONS
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The following summary provides a general description of the federal
income tax considerations associated with this Contract and does not
purport to be complete or to cover all tax situations. This
discussion is not intended as tax advice. You should consult your
counsel or other competent tax advisers for more complete
information. This discussion is based upon our understanding of the
present federal income tax laws. We do not make any representations
as to the likelihood of continuation of the present federal income
tax laws or as to how they may be interpreted by the IRS.
TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED
The Contract may be purchased on a non-tax-qualified basis or
purchased on a tax-qualified basis. Qualified Contracts are designed
for use by individuals whom premium payments are comprised solely of
proceeds from and/or contributions under retirement plans that are
intended to qualify as plans entitled to special income tax treatment
under Sections 401(a), 403(b), 408, or 408A of the Code. The
ultimate effect of federal income taxes on the amounts held under a
Contract, or annuity payments, depends on the type of retirement
plan, on the tax and employment status of the individual concerned,
and on our tax status. In addition, certain requirements must be
satisfied in purchasing a qualified Contract with proceeds from a tax-
qualified plan and receiving distributions from a qualified Contract
in order to continue receiving favorable tax treatment. Some
retirement plans are subject to distribution and other requirements
that are not incorporated into our Contract administration
procedures. Contract owners, participants and beneficiaries are
responsible for determining that contributions, distributions and
other transactions with respect to the Contract comply with
applicable law. Therefore, you should seek competent legal and tax
advice regarding the suitability of a Contract for your particular
situation. The following discussion assumes that qualified Contracts
are purchased with proceeds from and/or contributions under
retirement plans that qualify for the intended special federal income
tax treatment.
TAX STATUS OF THE CONTRACTS
DIVERSIFICATION REQUIREMENTS. The Code requires that the
investments of a variable account be "adequately diversified" in
order for the Contracts to be treated as annuity contracts for
federal income tax purposes. It is intended that Account A, through
the subaccounts, will satisfy these diversification requirements.
In certain circumstances, owners of variable annuity contracts have
been considered for federal income tax purposes to be the owners of
the assets of the separate account supporting their contracts due to
their ability to exercise investment control over those assets. When
this is the case, the contract owners have been currently taxed on
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income and gains attributable to the separate account assets. There
is little guidance in this area, and some features of the Contracts,
such as the flexibility of a contract owner to allocate premium
payments and transfer contract values, have not been explicitly
addressed in published rulings. While we believe that the Contracts
do not give contract owners investment control over Account A assets,
we reserve the right to modify the Contracts as necessary to prevent
a contract owner from being treated as the owner of the Account B
assets supporting the Contract.
REQUIRED DISTRIBUTIONS. In order to be treated as an annuity
contract for federal income tax purposes, the Code requires any non-
qualified Contract to contain certain provisions specifying how your
interest in the Contract will be distributed in the event of your
death. The non-qualified Contracts contain provisions that are
intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. We
intend to review such provisions and modify them if necessary to
assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.
Other rules may apply to Qualified Contracts.
The following discussion assumes that the Contracts will qualify as
annuity contracts for federal income tax purposes.
TAX TREATMENT OF ANNUITIES
IN GENERAL. We believe that if you are a natural person you will
generally not be taxed on increases in the value of a Contract until
a distribution occurs or until annuity payments begin. (For these
purposes, the agreement to assign or pledge any portion of the
contract value, and, in the case of a qualified Contract, any portion
of an interest in the qualified plan, generally will be treated as a
distribution.)
TAXATION OF NON-QUALIFIED CONTRACTS
NON-NATURAL PERSON. The owner of any annuity contract who is not
a natural person generally must include in income any increase in the
excess of the contract value over the "investment in the contract"
(generally, the premiums or other consideration paid for the
contract) during the taxable year. There are some exceptions to this
rule and a prospective contract owner that is not a natural person
may wish to discuss these with a tax adviser. The following
discussion generally applies to Contracts owned by natural persons.
WITHDRAWALS. When a withdrawal from a non-qualified Contract
occurs, the amount received will be treated as ordinary income
subject to tax up to an amount equal to the excess (if any) of the
contract value (unreduced by the amount of any surrender charge)
immediately before the distribution over the contract owner's
investment in the Contract at that time.
In the case of a surrender under a non-qualified Contract, the amount
received generally will be taxable only to the extent it exceeds the
contract owner's investment in the Contract.
PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution
from a non-qualified Contract, there may be imposed a federal tax
penalty equal to 10% of the amount treated as income. In general,
however, there is no penalty on distributions:
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o made on or after the taxpayer reaches age 59 1/2;
o made on or after the death of a contract owner;
o attributable to the taxpayer's becoming disabled; or
o made as part of a series of substantially equal periodic
payments for the life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and
special rules may be applicable in connection with the exceptions
enumerated above. A tax adviser should be consulted with regard to
exceptions from the penalty tax.
ANNUITY PAYMENTS. Although tax consequences may vary depending on
the payment option elected under an annuity contract, a portion of
each annuity payment is generally not taxed and the remainder is
taxed as ordinary income. The non-taxable portion of an annuity
payment is generally determined in a manner that is designed to allow
you to recover your investment in the Contract ratably on a tax-free
basis over the expected stream of annuity payments, as determined
when annuity payments start. Once your investment in the Contract
has been fully recovered, however, the full amount of each annuity
payment is subject to tax as ordinary income.
TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed
from a Contract because of your death or the death of the annuitant.
Generally, such amounts are includible in the income of recipient as
follows: (i) if distributed in a lump sum, they are taxed in the
same manner as a surrender of the Contract, or (ii) if distributed
under a payment option, they are taxed in the same way as annuity
payments.
TRANSFERS, ASSIGNMENTS, OR EXCHANGES, AND ANNUITY DATES OF A
CONTRACT. A transfer or assignment of ownership of a Contract, the
designation of an annuitant, the selection of certain dates for
commencement of the annuity phase, or the exchange of a Contract may
result in certain tax consequences to you that are not discussed
herein. A contract owner contemplating any such transfer, assignment
or exchange, should consult a tax advisor as to the tax consequences.
WITHHOLDING. Annuity distributions are generally subject to
withholding for the recipient's federal income tax liability.
Recipients can generally elect, however, not to have tax withheld
from distributions.
MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts
that are issued by us (or our affiliates) to the same contract owner
during any calendar year are treated as one annuity contract for
purposes of determining the amount includible in such contract
owner's income when a taxable distribution occurs.
TAXATION OF QUALIFIED CONTRACTS
The Contracts are designed for use with several types of qualified
plans. The tax rules applicable to participants in these qualified
plans vary according to the type of plan and the terms and
contributions of the plan itself. Special favorable tax treatment
may be available for certain types of contributions and
distributions. Adverse tax consequences may result from:
contributions in excess of specified limits; distributions before age
59 1/2 (subject to certain exceptions); distributions that do not
conform to specified commencement and minimum distribution rules; and
in other specified circumstances. Therefore, no attempt is made to
provide more than general information about the use of the Contracts
with the various types of qualified retirement plans. Contract
owners, annuitants, and beneficiaries are cautioned that the rights
of any person to any benefits under these qualified retirement plans
may be subject to the terms and conditions of the plans themselves,
regardless of the terms and conditions of the Contract, but we shall
not be bound by the terms and conditions of such plans to the extent
such terms contradict the Contract, unless the Company consents.
DISTRIBUTIONS. Annuity payments are generally taxed in the same
manner as under a non-qualified Contract. When a withdrawal from a
qualified Contract occurs, a pro rata portion of the amount received
is taxable, generally based on the ratio of the contract owner's
investment in the Contract (generally, the premiums or other
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consideration paid for the Contract) to the participant's total
accrued benefit balance under the retirement plan. For Qualified
Contracts, the investment in the Contract can be zero. For Roth
IRAs, distributions are generally not taxed, except as described
below.
For qualified plans under Section 401(a) and 403(b), the Code
requires that distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) (i) reaches age 70 1/2
or (ii) retires, and must be made in a specified form or manner. If
the plan participant is a "5 percent owner" (as defined in the Code),
distributions generally must begin no later than April 1 of the
calendar year following the calendar year in which the contract owner
(or plan participant) reaches age 70 1/2. For IRAs described in
Section 408, distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) reaches age 70 1/2.
Roth IRAs under Section 408A do not require distributions at any time
before the contract owner's death.
WITHHOLDING. Distributions from certain qualified plans generally
are subject to withholding for the contract owner's federal income
tax liability. The withholding rates vary according to the type of
distribution and the contract owner's tax status. The contract owner
may be provided the opportunity to elect not to have tax withheld
from distributions. "Eligible rollover distributions" from section
401(a) plans and section 403(b) tax-sheltered annuities are subject
to a mandatory federal income tax withholding of 20%. An eligible
rollover distribution is the taxable portion of any distribution from
such a plan, except certain distributions that are required by the
Code or distributions in a specified annuity form. The 20%
withholding does not apply, however, if the contract owner chooses a
"direct rollover" from the plan to another tax-qualified plan or IRA.
Brief descriptions of the various types of qualified retirement plans
in connection with a Contract follow. We will endorse the Contract
as necessary to conform it to the requirements of such plan.
REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH
We will not allow any payment of benefits provided under the Contract
which do not satisfy the requirements of Section 72(s) of the Code.
If an owner of a Non-Qualified Contract dies before the annuity start
date, the death benefit payable to the beneficiary will be
distributed as follows: (a) the death benefit must be completely
distributed within 5 years of the contract owner's date of death; or
(b) the beneficiary may elect, within the 1-year period after the
contract owner's date of death, to receive the death benefit in the
form of an annuity from us, provided that (i) such annuity is
distributed in substantially equal installments over the life of such
beneficiary or over a period not extending beyond the life expectancy
of such beneficiary; and (ii) such distributions begin not later than
1 year after the contract owner's date of death.
Notwithstanding (a) and (b) above, if the sole contract owner's
beneficiary is the deceased owner's surviving spouse, then such
spouse may elect, to continue the Contract under the same terms as
before the contract owner's death. Upon receipt of such election
from the spouse at our Customer Service Center: (1) all rights of
the spouse as contract owner's beneficiary under the Contract in
effect prior to such election will cease; (2) the spouse will become
the owner of the Contract and will also be treated as the contingent
annuitant, if none has been named and only if the deceased owner was
the annuitant; and (3) all rights and privileges granted by the
Contract or allowed by Golden American will belong to the spouse as
contract owner of the Contract. This election will be deemed to have
been made by the spouse if such spouse makes a premium payment to the
Contract or fails to make a timely election as described in this
paragraph. If the owner's beneficiary is a nonspouse, the
distribution provisions described in subparagraphs (a) and (b) above,
will apply even if the annuitant and/or contingent annuitant are
alive at the time of the contract owner's death.
If we do not receive an election from a nonspouse owner's beneficiary
within the 1-year period after the contract owner's date of death,
then we will pay the death benefit to the owner's beneficiary in a
cash payment within five years from date of death. We will determine
the death benefit as of the date we receive proof of death. We will
make payment of the proceeds on or before the end of the 5-year
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period starting on the owner's date of death. Such cash payment will
be in full settlement of all our liability under the Contract.
If the annuitant dies after the annuity start date, we will continue
to distribute any benefit payable at least as rapidly as under the
annuity option then in effect.
If the contract owner dies after the annuity start date, we will
continue to distribute any benefit payable at least as rapidly as
under the annuity option then in effect. All of the contract owner's
rights granted under the Contract or allowed by us will pass to the
contract owner's beneficiary.
If the Contract has joint owners we will consider the date of death
of the first joint owner as the death of the contract owner and the
surviving joint owner will become the contract owner of the Contract.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits corporate employers to establish
various types of retirement plans for employees, and permits self-
employed individuals to establish these plans for themselves and
their employees. These retirement plans may permit the purchase of
the Contracts to accumulate retirement savings under the plans.
Adverse tax or other legal consequences to the plan, to the
participant, or to both may result if this Contract is assigned or
transferred to any individual as a means to provide benefit payments,
unless the plan complies with all legal requirements applicable to
such benefits before transfer of the Contract. Employers intending
to use the Contract with such plans should seek competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" or "IRA." These IRAs are subject to limits on the amount
that can be contributed, the deductible amount of the contribution,
the persons who may be eligible, and the time when distributions
commence. Also, distributions from certain other types of qualified
retirement plans may be "rolled over" or transferred on a tax-
deferred basis into an IRA. There are significant restrictions on
rollover or transfer contributions from Savings Incentive Match Plans
(SIMPLE), under which certain employers may provide contributions to
IRAs on behalf of their employees, subject to special restrictions.
Employers may establish Simplified Employee Pension (SEP) Plans to
provide IRA contributions on behalf of their employees. Sales of the
Contract for use with IRAs may be subject to special requirements of
the IRS.
ROTH IRAS
Section 408A of the Code permits certain eligible individuals to
contribute to a Roth IRA. Contributions to a Roth IRA, which are
subject to certain limitations, are not deductible, and must be made
in cash or as a rollover or transfer from another Roth IRA or other
IRA. A rollover from or conversion of an IRA to a Roth IRA may be
subject to tax, and other special rules may apply. Distributions
from a Roth IRA generally are not taxed, except that, once aggregate
distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 1/2
(subject to certain exceptions) or (2) during the five taxable years
starting with the year in which the first contribution is made to the
Roth IRA.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their
gross income the premium payments made, within certain limits, on a
Contract that will provide an annuity for the employee's retirement.
These premium payments may be subject to FICA (social security) tax.
Distributions of (1) salary reduction contributions made in years
beginning after December 31, 1988; (2) earnings on those
contributions; and (3) earnings on amounts held as of the last year
beginning before January 1, 1989, are not allowed prior to age 59
1/2, separation from service, death or disability. Salary reduction
contributions may also be distributed upon hardship, but would
generally be subject to penalties.
29
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<PAGE>
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the federal tax
consequences under the Contracts are not exhaustive, and special
rules are provided with respect to other tax situations not discussed
in this prospectus. Further, the federal income tax consequences
discussed herein reflect our understanding of current law, and the
law may change. Federal estate and state and local estate,
inheritance and other tax consequences of ownership or receipt of
distributions under a Contract depend on the individual circumstances
of each contract owner or recipient of the distribution. A competent
tax adviser should be consulted for further information.
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative change is uncertain, there is
always the possibility that the tax treatment of the Contracts could
change by legislation or other means. It is also possible that any
change could be retroactive (that is, effective before the date of
the change). A tax adviser should be consulted with respect to
legislative developments and their effect on the Contract.
30
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[Shaded Section Header]
- --------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------------------------------------------------
TABLE OF CONTENTS
ITEM PAGE
Company................................................1
Experts................................................1
Legal Opinions.........................................1
Distributor............................................1
Yield Calculations for the Liquid Asset Subaccounts....1
Performance Information................................2
Annuity Provisions.....................................5
Financial Statements of Separate Account A.............5
- --------------------------------------------------------------------------
PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE
STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER
THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER;
THE ADDRESS IS SHOWN ON THE COVER.
- --------------------------------------------------------------------------
PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
FOR SEPARATE ACCOUNT A.
Please Print or Type:
--------------------------------------------------
NAME
--------------------------------------------------
SOCIAL SECURITY NUMBER
--------------------------------------------------
STREET ADDRESS
--------------------------------------------------
CITY, STATE, ZIP
PrimElite 5/9
91
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92
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APPENDIX A
CONDENSED FINANCIAL INFORMATION
The following tables give (1) the accumulation unit value ("AUV"),
(2) the total number of accumulation units, and (3) the total
accumulation unit value, for each subaccount of Equitable of Iowa
Separate Account A available under the Contract for the indicated
periods. The date on which the subaccount became available to
investors and the starting accumulation unit value are indicated on
the last row of each table.
MID-CAP GROWTH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.43 5,924,179 $132,179 |
| 1997 18.52 4,824,991 89,359 |
| 1996 15.70 2,602,724 40,863 |
| 1995 13.21 759,597 10,034 |
| 1994 10.35 63,781 660 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
RESEARCH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.89 180,483,646 $180,484 |
| 1997 18.87 10,840,733 [ ] |
| 1996 15.93 4,845,240 [ ] |
| 1995 13.10 1,255,752 [ ] |
| 1994 9.72 69,177 [ ] |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
A1
<PAGE>
<PAGE>
TOTAL RETURN
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.72 [ ] $170,738 |
| 1997 16.10 9,244,077 [ ] |
| 1996 13.51 4,354,328 [ ] |
| 1995 12.05 1,312,565 [ ] |
| 1994 9.81 33,106 [ ] |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
SMITH BARNEY LARGE CAP VALUE
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $19.24 6,212,301 $[ ] |
| 1997 17.17 4,211,810 [ ] |
| 1996 14.23 1,579,649 [ ] |
| 1995 12.05 295,134 [ ] |
| 4/5/95 10.00 -- -- |
|-------------------------------------------------------------|
SMITH BARNEY INTERNATIONAL EQUITY
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.28 2,094,604 $[ ] |
| 1997 13.59 1,734,132 $[ ] |
| 1996 13.42 804,975 $[ ] |
| 1995 11.56 154,388 $[ ] |
| 3/27/95 10.00 -- -- |
|-------------------------------------------------------------|
A2
<PAGE>
<PAGE>
SMITH BARNEY HIGH INCOME
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $13.58 1,927,034 $[ ] |
| 1997 13.72 1,544,897 $[ ] |
| 1996 12.22 670,736 $[ ] |
| 1995 10.94 72,283 $[ ] |
| 4/28/95 10.00 -- -- |
|-------------------------------------------------------------|
SMITH BARNEY MONEY MARKET
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $11.37 770,256 $[ ] |
| 1997 11.97 1,142,815 $[ ] |
| 1996 10.59 348,906 $[ ] |
| 1995 10.23 125,048 $[ ] |
| 5/24/95 10.00 -- -- |
|-------------------------------------------------------------|
APPRECIATION
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.47 4,865,719 $[ ] |
| 1997 14.01 2,177,729 $[ ] |
| 1996 11.24 497,034 $[ ] |
| 3/25/96 10.00 -- -- |
|-------------------------------------------------------------|
SELECT HIGH GROWTH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $12.33 [ ] $[ ] |
| 1997 10.87 1,866,333 $[ ] |
| [ ] 10.00 -- -- |
|-------------------------------------------------------------|
A3
<PAGE>
<PAGE>
SELECT GROWTH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $12.29 [ ] $[ ] |
| 1997 11.05 2,767,613 $[ ] |
| [ ] 10.00 -- -- |
|-------------------------------------------------------------|
SELECT BALANCED
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
|1998 $11.79 [ ] $[ ] |
|1997 11.06 2,668,341 $[ ] |
|[ ] 10.00 -- -- |
|-------------------------------------------------------------|
SELECT CONSERVATIVE
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
|1998 $11.52 [ ] $[ ] |
|1997 11.07 671,234 [ ] |
|[ ] 10.00 -- -- |
|-------------------------------------------------------------|
SELECT INCOME
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
|1998 $11.45 [ ] $[ ] |
|1997 11.03 250,841 [ ] |
|[ ] 10.00 -- -- |
|-------------------------------------------------------------|
A4
<PAGE>
<PAGE>
APPENDIX B
SURRENDER CHARGE FOR EXCESS WITHDRAWALS EXAMPLE
The following assumes you made an initial premium payment of $25,000 and
additional premium payments of $25,000 in each of the second and third
contract years, for total premium payments under the Contract of $75,000.
It also assumes a withdrawal at the beginning of the fifth contract year
of 30% of the contract year of 30% of the contract value of $90,000.
In this example, $22,500 (sum of $15,000 earnings and $75,000 * .10) is
the maximum free withdrawal amount that you may withdraw during the contract
year without a surrender charge. The total withdrawal would be $27,000
($90,000 * .30). Therefore, $4,500 ($27,000 - $22,500) is considered an
excess withdrawal of a part of the initial premium payment of $25,000 and
would be subject to a 4% surrender charge of $180 ($4,500 * .04).
B1
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<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
Equitable Life Insurance Company of Iowa is a stock company domiciled
in Iowa
[Shaded Line]
PE-1 5/9
<PAGE>
PART B
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
INDIVIDUAL FLEXIBLE PURCHASE PAYMENT DEFERRED
VARIABLE AND FIXED ANNUITY CONTRACTS
ISSUED BY
EQUITABLE LIFE INSURANCE COMPANY OF IOWA SEPARATE ACCOUNT A
AND
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
This is not a prospectus. This Statement of Additional Information
should be read in conjunction with the Prospectus dated May 1, 1999,
for the Individual Flexible Purchase Payment Deferred Variable and
Fixed Annuity Contracts which are referred to herein.
The Prospectus concisely sets forth information that a prospective
investor ought to know before investing. For a copy of the
Prospectus call or write the Company at: P.O. Box 2700, West
Chester, Pennsylvania 19380, (800) 344-6864.
DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION:
MAY 1, 1999.
<PAGE>
<PAGE>
TABLE OF CONTENTS
ITEM PAGE
Company.................................................. 1
Experts.................................................. 1
Legal Opinions........................................... 1
Distributor.............................................. 1
Yield Calculations For Money Market Subaccounts.......... 1
Performance Information.................................. 2
Annuity Provisions....................................... 5
Financial Statements..................................... 5
i
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<PAGE>
COMPANY
Information regarding Equitable Life Insurance Company of Iowa (the
"Company") and its ownership is contained in the Prospectus.
EXPERTS
The financial statements and schedules of the Company as of December
31, 1998 and for each of the three years in the period ended December
31, 1998, and the Statement of Assets and Liabilities of Equitable
Life Insurance Company of Iowa Separate Account A as of December 31,
1998, and the related statements of operations for the year then
ended and changes in net assets for each of the two years for the
period then ended have been audited by Ernst & Young LLP, independent
auditors, as set forth in their reports appearing elsewhere herein,
and are included in reliance upon such reports given upon the
authority of such firm as experts in accounting and auditing.
LEGAL OPINIONS
The legal validity of the Contract described in the prospectus and
herein has been passed upon by James R. Mumford, Esquire, General
Counsel and Secretary of the Company. The law firm of Sutherland
Asbill & Brennan LLP, of Washington, D.C. has provided advice on
certain matters relating to Federal Securities laws.
DISTRIBUTOR
The offering of contracts under the prospectus associated with this
Statement of Additional Information is continuous. Directed Services,
Inc., an affiliate of the Company, acts as the principal underwriter
(as defined in the Securities Act of 1933 and the Investment Company
Act of 1940, as amended) of the variable insurance products issued by
Company. Prior to Directed Services, Inc. becoming distributor, the
variable insurance products were distributed by ING Funds
Distributors, Inc. (formerly, Equitable Securities Network, Inc.),
which is also an affiliate of the company. For the years ended 1998,
1997 and 1996 commissions paid by the Company to the broker/dealers
who sold contracts aggregated $36,579,786, $45,601,541 and
$25,432,693, respectively. Directed Services, Inc. is located at
1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478.
YIELD CALCULATION FOR MONEY MARKET SUBACCOUNTS
The Money Market Subaccounts of the Separate Account will calculate
their current yield based upon the seven days ended on the date of
calculation. For the seven calendar days ended December 31, 1998,
the annualized yield and effective yield for the Money Market
Subaccounts were 3.25% and 3.30%, respectively. For the seven
calendar days ended December 31, 1998, the annualized yield and
effective yield for the Smith Barney Money Market Subaccount were
3.25% and 3.30%, respectively.
The current yields of the Money Market Subaccounts are computed by
determining the net change (exclusive of capital changes) in the
value of a hypothetical pre-existing Owner account having a balance
of one Accumulation Unit of the Subaccount at the beginning of the
period, subtracting the Mortality and Expense Risk Charge, the
Administrative Charge and the Annual Contract Maintenance Charge,
dividing the difference by the value of the account at the beginning
of the same period to obtain the base period return and multiplying
the result by (365/7).
The Money Market Subaccounts compute their effective compound yield
according to the method prescribed by the Securities and Exchange
Commission. The effective yield reflects the reinvestment of net
income earned daily on Money Market Subaccounts assets.
Net investment income for yield quotation purposes will not include
either realized capital gains and losses or unrealized appreciation
and depreciation, whether reinvested or not.
The yields quoted should not be considered a representation of the
yield of the Money Market Subaccounts in the future since the yield
is not fixed. Actual yields will depend not only on the type,
quality and maturities of the investments held by the Money Market
Subaccounts and changes in the interest rates on such investments,
but also on changes in the Money Market Subaccounts' expenses during
the period.
Yield information may be useful in reviewing the performance of the
Money Market Subaccounts and for providing a basis for comparison
with other investment alternatives. However, the Money Market
Subaccounts' yield fluctuates, unlike bank deposits or other
investments which typically pay a fixed yield for a stated period of
time. The yield information does not reflect the deduction of any
applicable Withdrawal Charge at the time of the surrender. (See
"Charges and Deductions - Deduction for Withdrawal Charge (Sales
Load)" in the Prospectus.)
PERFORMANCE INFORMATION
From time to time, the Company may advertise performance data as
described in the Prospectus. Any such advertisement will include
average annual total return figures for the time periods indicated in
the advertisement. Such total return figures will reflect the
deduction of a 1.25% Mortality and Expense Risk Charge, a 0.15%
Administrative Charge, the expenses for the underlying Portfolio
being advertised and any applicable Annual Contract Maintenance
Charge and Withdrawal Charges.
SEC STANDARD AVERAGE ANNUAL TOTAL RETURN
The hypothetical value of a Contract purchased for the time periods
described in the advertisement will be determined by using the actual
Accumulation Unit values for an initial $1,000 purchase payment, and
deducting any applicable Annual Contract Maintenance Charge and any
applicable Withdrawal Charge to arrive at the ending hypothetical
value. The average annual total return is then determined by
computing the fixed interest rate that a $1,000 purchase payment
would have to earn annually, compounded annually, to grow to the
hypothetical value at the end of the time periods described. The
formula used in these calculations is
P(1+T)^(n)=ERV
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value at the end of the time periods
used (or fractional portion thereof) of a hypothetical
$1,000 payment made at the beginning of the time periods
used.
SEC STANDARD 30-DAY YIELD FOR NON-MONEY MARKET SUBACCOUNTS
Quotations of yield for the remaining subaccounts will be based on
all investment income a subaccount earned during a particular 30-day
period, less expenses accrued during the period ("net investment
income"), and will be computed by dividing net investment income by
the value of an accumulation unit on the last day of the period,
according to the following formula:
YIELD = 2 [ ( a - b +1)^6 - 1]
-----
cd
Where: [a] equals the net investment income earned during the
period by the investment portfolio attributable to
shares owned by a subaccount
[b] equals the expenses accrued for the period (net of
reimbursements)
[c] equals the average daily number of units
outstanding during the period based on the index of
investment experience
[d] equals the value (maximum offering price) per
accumulatio0n unit value on the last day of the period
Yield on subaccounts of Account B is earned from the increase in net
asset value of shares of the Series in which the Subaccount invests
and from dividends declared and paid by the investment portfolio,
which are automatically reinvested in shares of the investment
portfolio.
SEC STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of average annual total return for any subaccount will be
expressed in terms of the average annual compounded rate of return of
a hypothetical investment in a contract over a period of one, five
and 10 years (or, if less, up to the life of the subaccount),
calculated pursuant to the formula:
P(1+T)^(n)=ERV
Where: (1) [P] equals a hypothetical initial premium payment
of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a
hypothetical $1,000 initial premium payment made at the
beginning of the period (or fractional portion thereof)
All total return figures reflect the deduction of the maximum sales
load, the administrative charges, and the mortality and expense risk
charges. The Securities and Exchange Commission (the "SEC") requires
that an assumption be made that the contract owner surrenders the
entire contract at the end of the one, five and 10 year periods (or,
if less, up to the life of the security) for which performance is
required to be calculated. This assumption may not be
2
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<PAGE>
consistent with
the typical contract owner's intentions in purchasing a contract and
may adversely affect returns. Quotations of total return may
simultaneously be shown for other periods, as well as quotations of
total return that do not take into account certain contractual
charges such as sales load.
Average Annual Total Return for the subaccounts presented on a
standardized basis, which includes deductions for the mortality and
expense risk charge, administrative charge and surrender charge for
the year ending December 31, 1998 were as follows:
Returns for Equi-Select Product:
Subaccounts Investing in:
One Year Five Year Inception Inception
Period Ending Period Ending to Ending Date
12/31/98 12/31/98 12/31/98
THE GCG TRUST
Equity Income -1.35% 7.64% 8.18%* 1/25/89
Fully Managed -3.68% 7.19% 7.46%* 1/25/89
Capital Appreciation 3.00% 14.57% 14.12%* 5/4/92
Rising Dividends 4.44% 16.58% 16.39% 10/4/93
All-Growth -0.11% 2.36% 4.40%* 1/25/89
Real Estate -22.76% 9.60% 7.83%* 1/25/89
Hard Assets -38.66% 0.19% 3.59%* 1/25/89
Value Equity -7.96% n/a 15.33% 1/1/95
Limited Maturity n/a n/a -14.69% 8/14/98
Liquid Asset -4.52% n/a 2.18%* 10/7/94
Small Cap 11.19% n/a 13.60% 1/2/96
Global Fixed Income 2.19%* n/a 5.51%* 10/7/94
Growth Opportunities n/a n/a -4.10% 2/18/98
Developing World n/a n/a -30.76% 2/18/98
Research 13.23% n/a 20.91%* 10/7/94
Total Return 1.94%* n/a 13.63%* 10/7/94
Mid-Cap Growth 13.00% n/a 20.31%* 10/7/94
Growth & Income 2.31% n/a 19.47% 4/1/96
Growth 16.95% n/a 17.53%* 4/1/96
Strategic Equity -8.66% n/a 9.92% 10/2/95
WARBURG PINCUS TRUST
International Equity 3.88% n/a 1.04%* 4/1/96
PIMCO VARIABLE INSURANCE TRUST
High Yield Portfolio n/a n/a 1.06%* 5/1/98
StocksPLUS Growth and n/a n/a 16.92%* 5/1/98
Income Portfolio
Returns for PrimElite Product:
Subaccounts Investing in:
Subaccounts Investing in:
One Year Inception Inception
Period Ending to Ending Date
12/31/98 12/31/98
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value Portfolio 0.22% 18.07% 04/05/95
Smith Barney International Equity Portfolio -3.05% 8.62% 03/27/95
Smith Barney High Income Portfolio -9.04% 7.30% 04/28/95
Smith Barney Money Market Portfolio -4.48% 2.01% 05/24/95
GREENWICH SERIES FUND
Appreciation Portfolio 9.41% 17.77% 03/22/96
THE GCG TRUST
Mid-Cap Growth Series 13.02% 20.33% 10/07/94
Research Portfolio 13.26% 20.92% 10/07/94
Total Return Portfolio 1.96%* 13.64%* 10/07/94
3
<PAGE>
<PAGE>
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select High Growth 5.69% 15.61% 02/05/97
Select Growth 4.29% 16.08% 02/05/97
Select Balanced -0.07% 11.36% 02/05/97
Select Conservative -3.39% 7.80% 02/05/97
Select Income -3.97% 6.75% 02/05/97
_________________________
* Total return calculation reflects partial waiver of fees and
expenses.
NON-STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of non-standard average annual total return for any
subaccount will be expressed in terms of the average annual
compounded rate of return of a hypothetical investment in a contract
over a period of one, five and 10 years (or, if less, up to the life
of the subaccount), calculated pursuant to the formula:
[P(1+T)^(n)]=ERV
Where: (1) [P] equals a hypothetical initial premium payment
of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a hypothetical
$1,000 initial premium payment made at the beginning of the
period (or fractional portion thereof) assuming certain
loading and charges are zero.
All total return figures reflect the deduction of the mortality and
expense risk charge and the administrative charges, but not the
deduction of the maximum sales load and the annual contract fee.
Average Annual Total Return for the subaccounts presented on a
standardized basis, which includes deductions for the mortality and
expense risk charge, administrative charge and surrender charge for
the year ending December 31, 1998 were as follows:
Returns for Equi-Select Product:
Subaccounts Investing in:
One Year Five Year Inception Inception
Period Ending Period Ending to Ending Date
12/31/98 12/31/98 12/31/98
THE GCG TRUST
Equity Income 6.75% 8.25% 8.23%* 1/25/89
Fully Managed 4.41% 7.81% 7.51%* 1/25/89
Capital Appreciation 11.10% 15.05% 14.38%* 5/4/92
Rising Dividends 12.54% 17.07% 16.83% 10/4/93
All-Growth 7.99% 3.12% 4.46%* 1/25/89
Real Estate -14.66% 10.17% 8.13%* 1/25/89
Hard Assets -30.57% 1.02% 3.65%* 1/25/89
Value Equity 0.13% n/a 16.34% 1/1/95
Limited Maturity n/a n/a 5.95% 8/14/98
Liquid Asset 3.58% n/a 3.56%* 10/7/94
Small Cap 19.29% n/a 15.43% 1/2/96
Global Fixed Income 10.29% n/a 6.56%* 10/7/94
Growth Opportunities n/a n/a -3.99% 2/18/98
Developing World n/a n/a -30.66% 2/18/98
Research 21.33% n/a 21.59%* 10/7/94
Total Return 2.03% n/a 14.46%* 10/7/94
Mid-Cap Growth 21.09% n/a 21.01%* 10/7/94
Growth & Income 10.41% n/a 21.37% 4/1/96
Growth 25.05% n/a 19.48%* 4/1/96
Strategic Equity -0.57% n/a 11.47% 10/2/95
WARBURG PINCUS TRUST
International Equity 3.88% n/a 0.67%* 4/1/96
4
<PAGE>
<PAGE>
PIMCO VARIABLE INSURANCE TRUST
High Yield Portfolio n/a n/a 1.20%* 5/1/98
StocksPLUS Growth and n/a n/a 17.08%* 5/1/98
Income Portfolio
Returns for PrimElite Product:
Subaccounts Investing in:
One Year Inception Inception
Period Ending to Ending Date
12/31/98 12/31/98
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value Portfolio 8.29% 19.11% 04/05/95
Smith Barney International Equity Portfolio 5.02% 9.91% 03/27/95
Smith Barney High Income Portfolio -0.97% 8.68% 04/28/95
Smith Barney Money Market Portfolio 3.60% 3.61% 05/24/95
GREENWICH SERIES FUND
Appreciation Portfolio 17.49% 19.66% 03/22/96
THE GCG TRUST
Mid-Cap Growth Series 21.09% 21.01% 10/07/94
Research Portfolio 21.33% 20.96% 10/07/94
Total Return Portfolio 10.03% 14.46% 10/07/94
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select High Growth 13.77% 11.83% 02/05/97
Select Growth 12.97% 12.05% 02/05/97
Select Balanced 8.00% 9.79% 02/05/97
Select Conservative 4.69% 8.06% 02/05/97
Select Income 4.11% 7.54% 02/05/97
_________________________
* Total return calculation reflects partial waiver of fees and
expenses.
Owners should note that the investment results of each Subaccount
will fluctuate over time, and any presentation of the Subaccount's
total return or yield for any period should not be considered as a
representation of what an investment may earn or what an Owner's
total return or yield may be in any future period.
ANNUITY PROVISIONS
Currently, the Company makes available payment plans on a fixed basis
only. (See the Prospectus - "Contract Proceeds - Fixed Payment Plans"
for a description of the Payment Plans.)
FINANCIAL STATEMENTS
The financial statements of the Company included herein should be
considered only as bearing upon the ability of the Company to meet
its obligations under the Contracts.
5
<PAGE>
<PAGE>
FINANCIAL STATEMENTS
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
YEARS ENDED DECEMBER 31, 1998 AND 1997
WITH REPORT OF INDEPENDENT AUDITORS
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
TABLE OF CONTENTS
Report of Independent Auditors
Audited Financial Statements
Statement of Net Assets
Statement of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Report of Independent Auditors
The Board of Directors
Equitable Life Insurance Company of Iowa
We have audited the accompanying statement of net assets of Equitable Life
Insurance Company of Iowa Separate Account A as of December 31, 1998, and the
related statements of operations for the year then ended and the changes in
net assets for each of the two years in the period then ended. These
financial statements are the responsibility of the 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 securities owned as of December 31,
1998, by correspondence with the transfer agent. 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 Equitable Life Insurance
Company of Iowa Separate Account A at December 31, 1998, and the results of
its operations for the year then ended and the changes in its net assets for
each of the two years in the period then ended in conformity with generally
accepted accounting principles.
/S/ Ernst & Young LLP
Des Moines, Iowa
February 25, 1999
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS
Investments at net asset value:
The GCG Trust:
Fully Managed Series,
1,051,573 shares (cost - $16,956) $16,015
Rising Dividends Series,
3,016,188 shares (cost - $64,197) 66,385
Small Cap Series,
1,256,316 shares (cost - $17,009) 20,138
Multiple Allocation Series,
75,584 shares (cost - $1,014) 958
Hard Assets Series,
35,479 shares (cost - $403) 341
Real Estate Series,
18,485 shares (cost - $288) 252
All-Growth Series,
26,129 shares (cost - $300) 392
Capital Appreciation Series,
92,558 shares (cost - $1,686) 1,674
Value Equity Series,
15,551 shares (cost - $244) 247
Strategic Equity Series,
13,458 shares (cost - $172) 173
Growth Opportunities Series,
7,551 shares (cost - $70) 73
Developing World Series,
80,879 shares (cost - $672) 596
Mid-Cap Growth Series,
7,340,178 shares (cost - $114,976) 132,856
Research Series,
15,990,914 shares (cost - $283,550) 324,775
Total Return Series,
14,013,106 shares (cost - $201,124) 221,408
Growth & Income Series,
7,477,054 shares (cost - $104,869) 116,791
Value + Growth Series,
5,504,333 shares (cost - $75,544) 85,977
Global Fixed Income Series,
1,109,322 shares (cost - $12,244) 12,391
Limited Maturity Bond Series,
4,126,175 shares (cost - $44,395) 44,068
Liquid Asset Series,
33,498,376 shares (cost - $33,498) 33,498
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS
Investments at net asset value:
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Series,
209,444 shares (cost - $2,007) $2,026
PIMCO StocksPLUS Growth and Income Series,
506,644 shares (cost - $5,694) 6,374
Warburg Pincus Trust:
International Equity Portfolio,
3,903,717 shares (cost - $45,895) 42,903
Travelers Series Fund Inc.:
Smith Barney Large Cap Value Portfolio,
5,914,225 shares (cost - $105,411) 119,526
Smith Barney International Equity Portfolio,
2,176,378 shares (cost - $28,446) 29,904
Smith Barney High Income Portfolio,
2,067,682 shares (cost - $26,392) 26,177
Smith Barney Money Market Portfolio,
8,755,176 shares (cost - $8,755) 8,755
Greenwich Street Series Fund Inc.:
Appreciation Portfolio,
3,786,243 shares (cost - $73,041) 80,117
Smith Barney Concert Allocation Series Inc.:
Select High Growth Portfolio,
3,281,618 shares (cost - $37,637) 41,316
Select Growth Portfolio,
5,272,212 shares (cost - $60,300) 65,955
Select Balanced Portfolio,
5,135,268 shares (cost - $57,947) 61,265
Select Conservative Portfolio,
1,403,939 shares (cost - $15,857) 16,327
Select Income Portfolio,
637,815 shares (cost - $7,263) 7,387
____________
TOTAL NET ASSETS (cost - $1,447,856) $1,587,040
============
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully Rising Small
Managed Dividends Cap
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $470 $298 --
Capital gains distributions 873 2,210 --
______________________________________
TOTAL INVESTMENT INCOME 1,343 2,508 --
Expenses:
Mortality and expense risk charges 186 764 $205
Annual contract charges 8 28 11
Transfer charges -- 1 --
______________________________________
TOTAL EXPENSES 194 793 216
______________________________________
NET INVESTMENT INCOME (LOSS) 1,149 1,715 (216)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 112 2,850 670
Net unrealized appreciation
(depreciation) of investments (822) 586 2,477
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $439 $5,151 $2,931
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple Hard
Allocation Assets Real Estate
Account(f) Account(e) Account(g)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $46 $19 $12
Capital gains distributions 50 12 22
______________________________________
TOTAL INVESTMENT INCOME 96 31 34
Expenses:
Mortality and expense risk charges 4 2 1
Annual contract charges -- -- --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 4 2 1
______________________________________
NET INVESTMENT INCOME (LOSS) 92 29 33
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (4) (3) (15)
Net unrealized appreciation
(depreciation) of investments (56) (62) (36)
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $32 ($36) ($18)
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital Value
All-Growth Appreciation Equity
Account(d) Account(c) Account(c)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $21 $4
Capital gains distributions $2 123 1
______________________________________
TOTAL INVESTMENT INCOME 2 144 5
Expenses:
Mortality and expense risk charges 2 4 1
Annual contract charges -- -- --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 2 4 1
______________________________________
NET INVESTMENT INCOME (LOSS) -- 140 4
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (93) (9) --
Net unrealized appreciation
(depreciation) of investments 92 (12) 3
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($1) $119 $7
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic Growth Developing
Equity Opportunities World
Account(c) Account(a) Account(a)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $5 -- --
Capital gains distributions 6 -- --
______________________________________
TOTAL INVESTMENT INCOME 11 -- --
Expenses:
Mortality and expense risk charges 1 $13 $5
Annual contract charges -- -- --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 1 13 5
______________________________________
NET INVESTMENT INCOME (LOSS) 10 (13) (5)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (6) (121) (58)
Net unrealized appreciation
(depreciation) of investments 1 3 (76)
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5 ($131) ($139)
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap Total
Growth Research Return
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $7,724 $21,722 $15,826
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 7,724 21,722 15,826
Expenses:
Mortality and expense risk charges 1,560 3,751 2,688
Annual contract charges 91 197 129
Transfer charges 1 8 --
______________________________________
TOTAL EXPENSES 1,652 3,956 2,817
______________________________________
NET INVESTMENT INCOME (LOSS) 6,072 17,766 13,009
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2,477 10,709 1,329
Net unrealized appreciation
(depreciation) of investments 11,890 21,352 3,006
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $20,439 $49,827 $17,344
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Growth & Value + Fixed
Income Growth Income
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $3,776 $4,880 $472
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 3,776 4,880 472
Expenses:
Mortality and expense risk charges 1,436 971 170
Annual contract charges 75 51 8
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 1,511 1,022 178
______________________________________
NET INVESTMENT INCOME (LOSS) 2,265 3,858 294
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2,020 2,697 (123)
Net unrealized appreciation
(depreciation) of investments 5,110 9,110 967
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $9,395 $15,665 $1,138
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity Liquid Money
Bond Asset Market
Account(h) Account(h) Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,328 $785 $1,195
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 1,328 785 1,195
Expenses:
Mortality and expense risk charges 234 228 336
Annual contract charges 9 8 9
Transfer charges -- 2 14
______________________________________
TOTAL EXPENSES 243 238 359
______________________________________
NET INVESTMENT INCOME (LOSS) 1,085 547 836
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 144 -- --
Net unrealized appreciation
(depreciation) of investments (327) -- --
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $902 $547 $836
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mortgage- PIMCO
Backed High Yield
Securities Advantage Bond
Account Account Account(b)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,067 $887 $60
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 1,067 887 60
Expenses:
Mortality and expense risk charges 179 177 11
Annual contract charges 7 7 --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 186 184 11
______________________________________
NET INVESTMENT INCOME (LOSS) 881 703 49
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (393) (504) (83)
Net unrealized appreciation
(depreciation) of investments (57) 281 19
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $431 $480 ($15)
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS Smith Barney
Growth and International Large Cap
Income Equity Value
Account(a) Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $132 $227 $1,168
Capital gains distributions -- -- 2,920
______________________________________
TOTAL INVESTMENT INCOME 132 227 4,088
Expenses:
Mortality and expense risk charges 22 597 1,469
Annual contract charges 1 34 58
Transfer charges -- 4 --
______________________________________
TOTAL EXPENSES 23 635 1,527
______________________________________
NET INVESTMENT INCOME (LOSS) 109 (408) 2,561
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (275) (163) 1,156
Net unrealized appreciation
(depreciation) of investments 680 1,958 2,545
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $514 $1,387 $6,262
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney Smith Barney Smith Barney
International High Money
Equity Income Market
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $1,449 $668
Capital gains distributions -- 333 --
______________________________________
TOTAL INVESTMENT INCOME -- 1,782 668
Expenses:
Mortality and expense risk charges $397 360 190
Annual contract charges 20 14 3
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 417 374 193
______________________________________
NET INVESTMENT INCOME (LOSS) (417) 1,408 475
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 311 262 --
Net unrealized appreciation
(depreciation) of investments 854 (2,115) --
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $748 ($445) $475
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select Select
Appreciation High Growth Growth
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $707 $211 $540
Capital gains distributions 2,761 -- --
______________________________________
TOTAL INVESTMENT INCOME 3,468 211 540
Expenses:
Mortality and expense risk charges 841 458 733
Annual contract charges 29 22 30
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 870 480 763
______________________________________
NET INVESTMENT INCOME (LOSS) 2,598 (269) (223)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 174 178 176
Net unrealized appreciation
(depreciation) of investments 5,958 3,569 4,753
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,730 $3,478 $4,706
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select Select Select
Balanced Conservative Income
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $868 $260 $111
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 868 260 111
Expenses:
Mortality and expense risk charges 699 181 81
Annual contract charges 22 5 2
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 721 186 83
______________________________________
NET INVESTMENT INCOME (LOSS) 147 74 28
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 222 107 118
Net unrealized appreciation
(depreciation) of investments 2,200 224 23
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $2,569 $405 $169
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $66,938
Capital gains distributions 9,313
____________
TOTAL INVESTMENT INCOME 76,251
Expenses:
Mortality and expense risk charges 18,957
Annual contract charges 878
Transfer charges 30
____________
TOTAL EXPENSES 19,865
____________
NET INVESTMENT INCOME (LOSS) 56,386
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 23,862
Net unrealized appreciation
(depreciation) of investments 74,098
____________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $154,346
============
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully
Managed
Account(a)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $568
Net realized gain (loss) on investments 13
Net unrealized appreciation (depreciation) of investments (119)
____________
Net increase (decrease)in net assets resulting from operations 462
Changes from principal transactions:
Purchase payments 3,480
Contract distributions and terminations (76)
Transfer payments from (to) other Accounts and Fixed Account 4,590
____________
Increase in net assets derived from principal transactions 7,994
____________
Total increase 8,456
____________
NET ASSETS AT DECEMBER 31, 1997 8,456
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION> Fully
Managed
Account(a)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,149
Net realized gain (loss) on investments 112
Net unrealized appreciation (depreciation) of investments (822)
____________
Net increase (decrease) in net assets resulting from operations 439
Changes from principal transactions:
Purchase payments 3,805
Contract distributions and terminations (793)
Transfer payments from (to) other Accounts and Fixed Account 4,108
____________
Increase (decrease) in net assets derived from
principal transactions 7,120
____________
Total increase (decrease) 7,559
____________
NET ASSETS AT DECEMBER 31, 1998 $16,015
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Account(b)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $534
Net realized gain (loss) on investments 689
Net unrealized appreciation (depreciation) of investments 1,602
____________
Net increase (decrease)in net assets resulting from operations 2,825
Changes from principal transactions:
Purchase payments 10,120
Contract distributions and terminations (592)
Transfer payments from (to) other Accounts and Fixed Account 19,021
____________
Increase in net assets derived from principal transactions 28,549
____________
Total increase 31,374
____________
NET ASSETS AT DECEMBER 31, 1997 31,374
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Account(b)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,715
Net realized gain (loss) on investments 2,850
Net unrealized appreciation (depreciation) of investments 586
____________
Net increase (decrease) in net assets resulting from operations 5,151
Changes from principal transactions:
Purchase payments 12,608
Contract distributions and terminations (2,631)
Transfer payments from (to) other Accounts and Fixed Account 19,883
____________
Increase (decrease) in net assets derived from
principal transactions 29,860
____________
Total increase (decrease) 35,011
____________
NET ASSETS AT DECEMBER 31, 1998 $66,385
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Account(a)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($72)
Net realized gain (loss) on investments 250
Net unrealized appreciation (depreciation) of investments 652
____________
Net increase (decrease)in net assets resulting from operations 830
Changes from principal transactions:
Purchase payments 4,227
Contract distributions and terminations (467)
Transfer payments from (to) other Accounts and Fixed Account 6,811
____________
Increase in net assets derived from principal transactions 10,571
____________
Total increase 11,401
____________
NET ASSETS AT DECEMBER 31, 1997 11,401
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Account(a)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($216)
Net realized gain (loss) on investments 670
Net unrealized appreciation (depreciation) of investments 2,477
____________
Net increase (decrease) in net assets resulting from operations 2,931
Changes from principal transactions:
Purchase payments 3,110
Contract distributions and terminations (902)
Transfer payments from (to) other Accounts and Fixed Account 3,598
____________
Increase (decrease) in net assets derived from
principal transactions 5,806
____________
Total increase (decrease) 8,737
____________
NET ASSETS AT DECEMBER 31, 1998 $20,138
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Account(l)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Account(l)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $92
Net realized gain (loss) on investments (4)
Net unrealized appreciation (depreciation) of investments (56)
____________
Net increase (decrease) in net assets resulting from operations 32
Changes from principal transactions:
Purchase payments 139
Contract distributions and terminations (12)
Transfer payments from (to) other Accounts and Fixed Account 799
____________
Increase (decrease) in net assets derived from
principal transactions 926
____________
Total increase (decrease) 958
____________
NET ASSETS AT DECEMBER 31, 1998 $958
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Account(k)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Account(k)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $29
Net realized gain (loss) on investments (3)
Net unrealized appreciation (depreciation) of investments (62)
____________
Net increase (decrease) in net assets resulting from operations (36)
Changes from principal transactions:
Purchase payments 7
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account 370
____________
Increase (decrease) in net assets derived from
principal transactions 377
____________
Total increase (decrease) 341
____________
NET ASSETS AT DECEMBER 31, 1998 $341
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Account(m)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Account(m)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $33
Net realized gain (loss) on investments (15)
Net unrealized appreciation (depreciation) of investments (36)
____________
Net increase (decrease) in net assets resulting from operations (18)
Changes from principal transactions:
Purchase payments 89
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account 181
____________
Increase (decrease) in net assets derived from
principal transactions 270
____________
Total increase (decrease) 252
____________
NET ASSETS AT DECEMBER 31, 1998 $252
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Account(j)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Account(j)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments ($93)
Net unrealized appreciation (depreciation) of investments 92
____________
Net increase (decrease) in net assets resulting from operations (1)
Changes from principal transactions:
Purchase payments 19
Contract distributions and terminations (2)
Transfer payments from (to) other Accounts and Fixed Account 376
____________
Increase (decrease) in net assets derived from
principal transactions 393
____________
Total increase (decrease) 392
____________
NET ASSETS AT DECEMBER 31, 1998 $392
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Account(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Account(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $140
Net realized gain (loss) on investments (9)
Net unrealized appreciation (depreciation) of investments (12)
____________
Net increase (decrease) in net assets resulting from operations 119
Changes from principal transactions:
Purchase payments 120
Contract distributions and terminations (10)
Transfer payments from (to) other Accounts and Fixed Account 1,445
____________
Increase (decrease) in net assets derived from
principal transactions 1,555
____________
Total increase (decrease) 1,674
____________
NET ASSETS AT DECEMBER 31, 1998 $1,674
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Account(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Account(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $4
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations 7
Changes from principal transactions:
Purchase payments 18
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account 222
____________
Increase (decrease) in net assets derived from
principal transactions 240
____________
Total increase (decrease) 247
____________
NET ASSETS AT DECEMBER 31, 1998 $247
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Account(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Account(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $10
Net realized gain (loss) on investments (6)
Net unrealized appreciation (depreciation) of investments 1
____________
Net increase (decrease) in net assets resulting from operations 5
Changes from principal transactions:
Purchase payments 27
Contract distributions and terminations (2)
Transfer payments from (to) other Accounts and Fixed Account 143
____________
Increase (decrease) in net assets derived from
principal transactions 168
____________
Total increase (decrease) 173
____________
NET ASSETS AT DECEMBER 31, 1998 $173
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Opportun-
ities
Account(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Opportun-
ities
Account(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($13)
Net realized gain (loss) on investments (121)
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations (131)
Changes from principal transactions:
Purchase payments 23
Contract distributions and terminations (18)
Transfer payments from (to) other Accounts and Fixed Account 199
____________
Increase (decrease) in net assets derived from
principal transactions 204
____________
Total increase (decrease) 73
____________
NET ASSETS AT DECEMBER 31, 1998 $73
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Developing
World
Account(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Developing
World
Account(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($5)
Net realized gain (loss) on investments (58)
Net unrealized appreciation (depreciation) of investments (76)
____________
Net increase (decrease) in net assets resulting from operations (139)
Changes from principal transactions:
Purchase payments 22
Contract distributions and terminations (9)
Transfer payments from (to) other Accounts and Fixed Account 722
____________
Increase (decrease) in net assets derived from
principal transactions 735
____________
Total increase (decrease) 596
____________
NET ASSETS AT DECEMBER 31, 1998 $596
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $40,853
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 2,791
Net realized gain (loss) on investments 3,086
Net unrealized appreciation (depreciation) of investments 4,758
____________
Net increase (decrease)in net assets resulting from operations 10,635
Changes from principal transactions:
Purchase payments 25,661
Contract distributions and terminations (2,959)
Transfer payments from (to) other Accounts and Fixed Account 15,167
____________
Increase in net assets derived from principal transactions 37,869
____________
Total increase 48,504
____________
NET ASSETS AT DECEMBER 31, 1997 89,357
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $6,072
Net realized gain (loss) on investments 2,477
Net unrealized appreciation (depreciation) of investments 11,890
____________
Net increase (decrease) in net assets resulting from operations 20,439
Changes from principal transactions:
Purchase payments 21,460
Contract distributions and terminations (6,410)
Transfer payments from (to) other Accounts and Fixed Account 8,010
____________
Increase (decrease) in net assets derived from
principal transactions 23,060
____________
Total increase (decrease) 43,499
____________
NET ASSETS AT DECEMBER 31, 1998 $132,856
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $77,175
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 4,344
Net realized gain (loss) on investments 3,990
Net unrealized appreciation (depreciation) of investments 12,925
____________
Net increase (decrease)in net assets resulting from operations 21,259
Changes from principal transactions:
Purchase payments 67,832
Contract distributions and terminations (5,189)
Transfer payments from (to) other Accounts and Fixed Account 43,443
____________
Increase in net assets derived from principal transactions 106,086
____________
Total increase 127,345
____________
NET ASSETS AT DECEMBER 31, 1997 204,520
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $17,766
Net realized gain (loss) on investments 10,709
Net unrealized appreciation (depreciation) of investments 21,352
____________
Net increase (decrease) in net assets resulting from operations 49,827
Changes from principal transactions:
Purchase payments 53,892
Contract distributions and terminations (15,480)
Transfer payments from (to) other Accounts and Fixed Account 32,016
____________
Increase (decrease) in net assets derived from
principal transactions 70,428
____________
Total increase (decrease) 120,255
____________
NET ASSETS AT DECEMBER 31, 1998 $324,775
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $58,835
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 3,478
Net realized gain (loss) on investments 638
Net unrealized appreciation (depreciation) of investments 13,099
____________
Net increase (decrease)in net assets resulting from operations 17,215
Changes from principal transactions:
Purchase payments 46,890
Contract distributions and terminations (5,976)
Transfer payments from (to) other Accounts and Fixed Account 31,888
____________
Increase in net assets derived from principal transactions 72,802
____________
Total increase 90,017
____________
NET ASSETS AT DECEMBER 31, 1997 148,852
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $13,009
Net realized gain (loss) on investments 1,329
Net unrealized appreciation (depreciation) of investments 3,006
____________
Net increase (decrease) in net assets resulting from operations 17,344
Changes from principal transactions:
Purchase payments 41,331
Contract distributions and terminations (10,918)
Transfer payments from (to) other Accounts and Fixed Account 24,799
____________
Increase (decrease) in net assets derived from
principal transactions 55,212
____________
Total increase (decrease) 72,556
____________
NET ASSETS AT DECEMBER 31, 1998 $221,408
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $27,830
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 6,214
Net realized gain (loss) on investments 1,222
Net unrealized appreciation (depreciation) of investments 4,340
____________
Net increase (decrease)in net assets resulting from operations 11,776
Changes from principal transactions:
Purchase payments 26,757
Contract distributions and terminations (2,887)
Transfer payments from (to) other Accounts and Fixed Account 24,333
____________
Increase in net assets derived from principal transactions 48,203
____________
Total increase 59,979
____________
NET ASSETS AT DECEMBER 31, 1997 87,809
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,265
Net realized gain (loss) on investments 2,020
Net unrealized appreciation (depreciation) of investments 5,110
____________
Net increase (decrease) in net assets resulting from operations 9,395
Changes from principal transactions:
Purchase payments 14,922
Contract distributions and terminations (5,781)
Transfer payments from (to) other Accounts and Fixed Account 10,446
____________
Increase (decrease) in net assets derived from
principal transactions 19,587
____________
Total increase (decrease) 28,982
____________
NET ASSETS AT DECEMBER 31, 1998 $116,791
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $14,136
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (507)
Net realized gain (loss) on investments 1,030
Net unrealized appreciation (depreciation) of investments 347
____________
Net increase (decrease)in net assets resulting from operations 870
Changes from principal transactions:
Purchase payments 18,436
Contract distributions and terminations (1,779)
Transfer payments from (to) other Accounts and Fixed Account 24,710
____________
Increase in net assets derived from principal transactions 41,367
____________
Total increase 42,237
____________
NET ASSETS AT DECEMBER 31, 1997 56,373
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,858
Net realized gain (loss) on investments 2,697
Net unrealized appreciation (depreciation) of investments 9,110
____________
Net increase (decrease) in net assets resulting from operations 15,665
Changes from principal transactions:
Purchase payments 11,209
Contract distributions and terminations (3,821)
Transfer payments from (to) other Accounts and Fixed Account 6,551
____________
Increase (decrease) in net assets derived from
principal transactions 13,939
____________
Total increase (decrease) 29,604
____________
NET ASSETS AT DECEMBER 31, 1998 $85,977
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $8,440
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 447
Net realized gain (loss) on investments 125
Net unrealized appreciation (depreciation) of investments (614)
____________
Net increase (decrease)in net assets resulting from operations (42)
Changes from principal transactions:
Purchase payments 2,503
Contract distributions and terminations (603)
Transfer payments from (to) other Accounts and Fixed Account 1,607
____________
Increase in net assets derived from principal transactions 3,507
____________
Total increase 3,465
____________
NET ASSETS AT DECEMBER 31, 1997 11,905
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $294
Net realized gain (loss) on investments (123)
Net unrealized appreciation (depreciation) of investments 967
____________
Net increase (decrease) in net assets resulting from operations 1,138
Changes from principal transactions:
Purchase payments 1,025
Contract distributions and terminations (938)
Transfer payments from (to) other Accounts and Fixed Account (739)
____________
Increase (decrease) in net assets derived from
principal transactions (652)
____________
Total increase (decrease) 486
____________
NET ASSETS AT DECEMBER 31, 1998 $12,391
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Account(n)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Account(n)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,085
Net realized gain (loss) on investments 144
Net unrealized appreciation (depreciation) of investments (327)
____________
Net increase (decrease) in net assets resulting from operations 902
Changes from principal transactions:
Purchase payments 2,329
Contract distributions and terminations (868)
Transfer payments from (to) other Accounts and Fixed Account 41,705
____________
Increase (decrease) in net assets derived from
principal transactions 43,166
____________
Total increase (decrease) 44,068
____________
NET ASSETS AT DECEMBER 31, 1998 $44,068
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Account(n)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Account(n)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $547
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 547
Changes from principal transactions:
Purchase payments 25,410
Contract distributions and terminations (3,992)
Transfer payments from (to) other Accounts and Fixed Account 11,533
____________
Increase (decrease) in net assets derived from
principal transactions 32,951
____________
Total increase (decrease) 33,498
____________
NET ASSETS AT DECEMBER 31, 1998 $33,498
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Money
Market
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $19,138
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 1,163
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations 1,163
Changes from principal transactions:
Purchase payments 180,384
Contract distributions and terminations (3,652)
Transfer payments from (to) other Accounts and Fixed Account (161,449)
____________
Increase in net assets derived from principal transactions 15,283
____________
Total increase 16,446
____________
NET ASSETS AT DECEMBER 31, 1997 35,584
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Money
Market
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $836
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 836
Changes from principal transactions:
Purchase payments 76,038
Contract distributions and terminations (3,609)
Transfer payments from (to) other Accounts and Fixed Account (108,849)
____________
Increase (decrease) in net assets derived from
principal transactions (36,420)
____________
Total increase (decrease) (35,584)
____________
NET ASSETS AT DECEMBER 31, 1998 --
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mortgage-
Backed
Securities
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $10,833
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 581
Net realized gain (loss) on investments (50)
Net unrealized appreciation (depreciation) of investments 373
____________
Net increase (decrease)in net assets resulting from operations 904
Changes from principal transactions:
Purchase payments 3,919
Contract distributions and terminations (720)
Transfer payments from (to) other Accounts and Fixed Account 2,737
____________
Increase in net assets derived from principal transactions 5,936
____________
Total increase 6,840
____________
NET ASSETS AT DECEMBER 31, 1997 17,673
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mortgage-
Backed
Securities
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $881
Net realized gain (loss) on investments (393)
Net unrealized appreciation (depreciation) of investments (57)
____________
Net increase (decrease) in net assets resulting from operations 431
Changes from principal transactions:
Purchase payments 2,518
Contract distributions and terminations (1,175)
Transfer payments from (to) other Accounts and Fixed Account (19,447)
____________
Increase (decrease) in net assets derived from
principal transactions (18,104)
____________
Total increase (decrease) (17,673)
____________
NET ASSETS AT DECEMBER 31, 1998 --
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Advantage
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $15,019
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 531
Net realized gain (loss) on investments 256
Net unrealized appreciation (depreciation) of investments (69)
____________
Net increase (decrease)in net assets resulting from operations 718
Changes from principal transactions:
Purchase payments 8,222
Contract distributions and terminations (1,616)
Transfer payments from (to) other Accounts and Fixed Account (4,515)
____________
Increase in net assets derived from principal transactions 2,091
____________
Total increase 2,809
____________
NET ASSETS AT DECEMBER 31, 1997 17,828
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Advantage
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $703
Net realized gain (loss) on investments (504)
Net unrealized appreciation (depreciation) of investments 281
____________
Net increase (decrease) in net assets resulting from operations 480
Changes from principal transactions:
Purchase payments 2,759
Contract distributions and terminations (1,057)
Transfer payments from (to) other Accounts and Fixed Account (20,010)
____________
Increase (decrease) in net assets derived from
principal transactions (18,308)
____________
Total increase (decrease) (17,828)
____________
NET ASSETS AT DECEMBER 31, 1998 --
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield Bond
Account(h)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield Bond
Account(h)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $49
Net realized gain (loss) on investments (83)
Net unrealized appreciation (depreciation) of investments 19
____________
Net increase (decrease) in net assets resulting from operations (15)
Changes from principal transactions:
Purchase payments 344
Contract distributions and terminations (79)
Transfer payments from (to) other Accounts and Fixed Account 1,776
____________
Increase (decrease) in net assets derived from
principal transactions 2,041
____________
Total increase (decrease) 2,026
____________
NET ASSETS AT DECEMBER 31, 1998 $2,026
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth &
Income
Account(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth &
Income
Account(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $109
Net realized gain (loss) on investments (275)
Net unrealized appreciation (depreciation) of investments 680
____________
Net increase (decrease) in net assets resulting from operations 514
Changes from principal transactions:
Purchase payments 197
Contract distributions and terminations (43)
Transfer payments from (to) other Accounts and Fixed Account 5,706
____________
Increase (decrease) in net assets derived from
principal transactions 5,860
____________
Total increase (decrease) 6,374
____________
NET ASSETS AT DECEMBER 31, 1998 $6,374
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $20,824
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 1,981
Net realized gain (loss) on investments 175
Net unrealized appreciation (depreciation) of investments (5,059)
____________
Net increase (decrease)in net assets resulting from operations (2,903)
Changes from principal transactions:
Purchase payments 11,101
Contract distributions and terminations (2,232)
Transfer payments from (to) other Accounts and Fixed Account 11,923
____________
Increase in net assets derived from principal transactions 20,792
____________
Total increase 17,889
____________
NET ASSETS AT DECEMBER 31, 1997 38,713
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($408)
Net realized gain (loss) on investments (163)
Net unrealized appreciation (depreciation) of investments 1,958
____________
Net increase (decrease) in net assets resulting from operations 1,387
Changes from principal transactions:
Purchase payments 4,921
Contract distributions and terminations (2,836)
Transfer payments from (to) other Accounts and Fixed Account 718
____________
Increase (decrease) in net assets derived from
principal transactions 2,803
____________
Total increase (decrease) 4,190
____________
NET ASSETS AT DECEMBER 31, 1998 $42,903
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Large Cap
Value
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $22,471
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (668)
Net realized gain (loss) on investments 173
Net unrealized appreciation (depreciation) of investments 9,764
____________
Net increase (decrease)in net assets resulting from operations 9,269
Changes from principal transactions:
Purchase payments 32,707
Contract distributions and terminations (1,296)
Transfer payments from (to) other Accounts and Fixed Account 11,679
____________
Increase in net assets derived from principal transactions 43,090
____________
Total increase 52,359
____________
NET ASSETS AT DECEMBER 31, 1997 74,830
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Large Cap
Value
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,561
Net realized gain (loss) on investments 1,156
Net unrealized appreciation (depreciation) of investments 2,545
____________
Net increase (decrease) in net assets resulting from operations 6,262
Changes from principal transactions:
Purchase payments 31,229
Contract distributions and terminations (5,874)
Transfer payments from (to) other Accounts and Fixed Account 13,079
____________
Increase (decrease) in net assets derived from
principal transactions 38,434
____________
Total increase (decrease) 44,696
____________
NET ASSETS AT DECEMBER 31, 1998 $119,526
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Inter-
national
Equity
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $10,805
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (263)
Net realized gain (loss) on investments 63
Net unrealized appreciation (depreciation) of investments (159)
____________
Net increase (decrease)in net assets resulting from operations (359)
Changes from principal transactions:
Purchase payments 10,522
Contract distributions and terminations (391)
Transfer payments from (to) other Accounts and Fixed Account 2,996
____________
Increase in net assets derived from principal transactions 13,127
____________
Total increase 12,768
____________
NET ASSETS AT DECEMBER 31, 1997 23,573
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Inter-
national
Equity
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($417)
Net realized gain (loss) on investments 311
Net unrealized appreciation (depreciation) of investments 854
____________
Net increase (decrease) in net assets resulting from operations 748
Changes from principal transactions:
Purchase payments 5,760
Contract distributions and terminations (1,469)
Transfer payments from (to) other Accounts and Fixed Account 1,292
____________
Increase (decrease) in net assets derived from
principal transactions 5,583
____________
Total increase (decrease) 6,331
____________
NET ASSETS AT DECEMBER 31, 1998 $29,904
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
High
Income
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $8,195
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (213)
Net realized gain (loss) on investments 109
Net unrealized appreciation (depreciation) of investments 1,805
____________
Net increase (decrease)in net assets resulting from operations 1,701
Changes from principal transactions:
Purchase payments 9,444
Contract distributions and terminations (349)
Transfer payments from (to) other Accounts and Fixed Account 2,199
____________
Increase in net assets derived from principal transactions 11,294
____________
Total increase 12,995
____________
NET ASSETS AT DECEMBER 31, 1997 21,190
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
High
Income
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,408
Net realized gain (loss) on investments 262
Net unrealized appreciation (depreciation) of investments (2,115)
____________
Net increase (decrease) in net assets resulting from operations (445)
Changes from principal transactions:
Purchase payments 6,314
Contract distributions and terminations (1,655)
Transfer payments from (to) other Accounts and Fixed Account 773
____________
Increase (decrease) in net assets derived from
principal transactions 5,432
____________
Total increase (decrease) 4,987
____________
NET ASSETS AT DECEMBER 31, 1998 $26,177
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Money
Market
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $3,694
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 294
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations 294
Changes from principal transactions:
Purchase payments 72,870
Contract distributions and terminations (272)
Transfer payments from (to) other Accounts and Fixed Account (64,047)
____________
Increase in net assets derived from principal transactions 8,551
____________
Total increase 8,845
____________
NET ASSETS AT DECEMBER 31, 1997 12,539
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Money
Market
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $475
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 475
Changes from principal transactions:
Purchase payments 89,101
Contract distributions and terminations (1,272)
Transfer payments from (to) other Accounts and Fixed Account (92,088)
____________
Increase (decrease) in net assets derived from
principal transactions (4,259)
____________
Total increase (decrease) (3,784)
____________
NET ASSETS AT DECEMBER 31, 1998 $8,755
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appreciation
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $5,586
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 1,683
Net realized gain (loss) on investments 8
Net unrealized appreciation (depreciation) of investments 1,159
____________
Net increase (decrease)in net assets resulting from operations 2,850
Changes from principal transactions:
Purchase payments 17,039
Contract distributions and terminations (366)
Transfer payments from (to) other Accounts and Fixed Account 5,412
____________
Increase in net assets derived from principal transactions 22,085
____________
Total increase 24,935
____________
NET ASSETS AT DECEMBER 31, 1997 30,521
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appreciation
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,598
Net realized gain (loss) on investments 174
Net unrealized appreciation (depreciation) of investments 5,958
____________
Net increase (decrease) in net assets resulting from operations 8,730
Changes from principal transactions:
Purchase payments 27,017
Contract distributions and terminations (2,431)
Transfer payments from (to) other Accounts and Fixed Account 16,280
____________
Increase (decrease) in net assets derived from
principal transactions 40,866
____________
Total increase (decrease) 49,596
____________
NET ASSETS AT DECEMBER 31, 1998 $80,117
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
High
Growth
Account(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($96)
Net realized gain (loss) on investments 36
Net unrealized appreciation (depreciation) of investments 110
____________
Net increase (decrease)in net assets resulting from operations 50
Changes from principal transactions:
Purchase payments 15,566
Contract distributions and terminations (244)
Transfer payments from (to) other Accounts and Fixed Account 4,916
____________
Increase in net assets derived from principal transactions 20,238
____________
Total increase 20,288
____________
NET ASSETS AT DECEMBER 31, 1997 20,288
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
High
Growth
Account(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($269)
Net realized gain (loss) on investments 178
Net unrealized appreciation (depreciation) of investments 3,569
____________
Net increase (decrease) in net assets resulting from operations 3,478
Changes from principal transactions:
Purchase payments 13,012
Contract distributions and terminations (1,833)
Transfer payments from (to) other Accounts and Fixed Account 6,371
____________
Increase (decrease) in net assets derived from
principal transactions 17,550
____________
Total increase (decrease) 21,028
____________
NET ASSETS AT DECEMBER 31, 1998 $41,316
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Growth
Account(d)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($143)
Net realized gain (loss) on investments 4
Net unrealized appreciation (depreciation) of investments 902
____________
Net increase (decrease)in net assets resulting from operations 763
Changes from principal transactions:
Purchase payments 22,740
Contract distributions and terminations (162)
Transfer payments from (to) other Accounts and Fixed Account 7,236
____________
Increase in net assets derived from principal transactions 29,814
____________
Total increase 30,577
____________
NET ASSETS AT DECEMBER 31, 1997 30,577
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Growth
Account(d)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($223)
Net realized gain (loss) on investments 176
Net unrealized appreciation (depreciation) of investments 4,753
____________
Net increase (decrease) in net assets resulting from operations 4,706
Changes from principal transactions:
Purchase payments 21,314
Contract distributions and terminations (2,023)
Transfer payments from (to) other Accounts and Fixed Account 11,381
____________
Increase (decrease) in net assets derived from
principal transactions 30,672
____________
Total increase (decrease) 35,378
____________
NET ASSETS AT DECEMBER 31, 1998 $65,955
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Balanced
Account(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($150)
Net realized gain (loss) on investments 4
Net unrealized appreciation (depreciation) of investments 1,118
____________
Net increase (decrease)in net assets resulting from operations 972
Changes from principal transactions:
Purchase payments 20,980
Contract distributions and terminations (142)
Transfer payments from (to) other Accounts and Fixed Account 7,697
____________
Increase in net assets derived from principal transactions 28,535
____________
Total increase 29,507
____________
NET ASSETS AT DECEMBER 31, 1997 29,507
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Balanced
Account(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $147
Net realized gain (loss) on investments 222
Net unrealized appreciation (depreciation) of investments 2,200
____________
Net increase (decrease) in net assets resulting from operations 2,569
Changes from principal transactions:
Purchase payments 21,186
Contract distributions and terminations (2,310)
Transfer payments from (to) other Accounts and Fixed Account 10,313
____________
Increase (decrease) in net assets derived from
principal transactions 29,189
____________
Total increase (decrease) 31,758
____________
NET ASSETS AT DECEMBER 31, 1998 $61,265
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Conservative
Account(f)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($34)
Net realized gain (loss) on investments 22
Net unrealized appreciation (depreciation) of investments 246
____________
Net increase (decrease)in net assets resulting from operations 234
Changes from principal transactions:
Purchase payments 5,637
Contract distributions and terminations (78)
Transfer payments from (to) other Accounts and Fixed Account 1,637
____________
Increase in net assets derived from principal transactions 7,196
____________
Total increase 7,430
____________
NET ASSETS AT DECEMBER 31, 1997 7,430
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Conservative
Account(f)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $74
Net realized gain (loss) on investments 107
Net unrealized appreciation (depreciation) of investments 224
____________
Net increase (decrease) in net assets resulting from operations 405
Changes from principal transactions:
Purchase payments 5,520
Contract distributions and terminations (727)
Transfer payments from (to) other Accounts and Fixed Account 3,699
____________
Increase (decrease) in net assets derived from
principal transactions 8,492
____________
Total increase (decrease) 8,897
____________
NET ASSETS AT DECEMBER 31, 1998 $16,327
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Income
Account(e)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($14)
Net realized gain (loss) on investments 20
Net unrealized appreciation (depreciation) of investments 101
____________
Net increase (decrease)in net assets resulting from operations 107
Changes from principal transactions:
Purchase payments 2,218
Contract distributions and terminations (56)
Transfer payments from (to) other Accounts and Fixed Account 498
____________
Increase in net assets derived from principal transactions 2,660
____________
Total increase 2,767
____________
NET ASSETS AT DECEMBER 31, 1997 2,767
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Income
Account(e)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $28
Net realized gain (loss) on investments 118
Net unrealized appreciation (depreciation) of investments 23
____________
Net increase (decrease) in net assets resulting from operations 169
Changes from principal transactions:
Purchase payments 2,142
Contract distributions and terminations (300)
Transfer payments from (to) other Accounts and Fixed Account 2,609
____________
Increase (decrease) in net assets derived from
principal transactions 4,451
____________
Total increase (decrease) 4,620
____________
NET ASSETS AT DECEMBER 31, 1998 $7,387
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $343,834
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 22,449
Net realized gain (loss) on investments 11,863
Net unrealized appreciation (depreciation) of investments 47,281
____________
Net increase (decrease)in net assets resulting from operations 81,593
Changes from principal transactions:
Purchase payments 619,255
Contract distributions and terminations (32,104)
Transfer payments from (to) other Accounts and Fixed Account 489
____________
Increase in net assets derived from principal transactions 587,640
____________
Total increase 669,233
____________
NET ASSETS AT DECEMBER 31, 1997 1,013,067
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $56,386
Net realized gain (loss) on investments 23,862
Net unrealized appreciation (depreciation) of investments 74,098
____________
Net increase (decrease) in net assets resulting from operations 154,346
Changes from principal transactions:
Purchase payments 500,937
Contract distributions and terminations (81,280)
Transfer payments from (to) other Accounts and Fixed Account (30)
____________
Increase (decrease) in net assets derived from
principal transactions 419,627
____________
Total increase (decrease) 573,973
____________
NET ASSETS AT DECEMBER 31, 1998 $1,587,040
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 1 - ORGANIZATION
Equitable Life Insurance Company of Iowa Separate Account A (the "Separate
Account") was established by Equitable Life Insurance Company of Iowa (the
"Company") in accordance with the provisions of Iowa Insurance laws and is a
part of the total operations of the Company. The assets and liabilities of
the Separate Account are clearly identified and distinguished from the other
assets and liabilities of the Company. Commencement of operations is defined
as the date of initial sale of contract units to Contractowners. Investments
are stated at the closing net asset values per share on December 31, 1998.
The Separate Account is a unit investment trust, registered with the
Securities and Exchange Commission under the Investment Company Act of 1940,
as amended. As of December 31, 1998, the Separate Account consisted of
thirty-three investment accounts. The assets in each account are invested in
shares of a designated Series ("Series," which may also be referred to as a
"Portfolio") of mutual funds of The GCG Trust, PIMCO Variable Insurance
Trust, Travelers Series Fund Inc., Greenwich Street Series Fund Inc.
(formerly Smith Barney Series Fund, Inc.), Smith Barney Concert Allocation
Series Inc. or Warburg Pincus Trust (the "Trusts"). The Trusts are open
ended management investment companies. Twenty of the accounts (Fully
Managed, Rising Dividends, Small Cap, Multiple Allocation, Hard Assets, Real
Estate, All-Growth, Capital Appreciation, Value Equity, Strategic Equity,
Growth Opportunities, Developing World, Mid-Cap Growth, Research, Total
Return, Growth & Income, Value + Growth, Global Fixed Income, Limited
Maturity Bond and Liquid Asset) are invested in specific series of The GCG
Trust, two of which (PIMCO High Yield Bond and PIMCO StocksPLUS Growth and
Income) are invested in specific series of the PIMCO Variable Insurance Trust
and one of which (International Equity) is invested in the International
Equity Portfolio of the Warburg Pincus Trust as directed by eligible
Contractowners. Activity in these twenty-three investment accounts is
available to Contractowners of the Equi-Select Variable Annuity product.
Prior to August 14, 1998, the Separate Account also had certain investment
divisions available from the Equi-Select Series Trust. In an effort to
consolidate operations, the Company requested permission from the Securities
and Exchange Commission ("SEC") to substitute shares of each Portfolio of the
Equi-Select Series Trust with shares of a similar Series of The GCG Trust. On
August 14, 1998, after approval from the SEC, shares of each Portfolio of the
Equi-Select Series Trust were substituted with shares of a similar Series of
The GCG Trust. The consolidation resulted in the following Series being
substituted from The GCG Trust:
<TABLE>
<CAPTION>
Equi-Select Series Trust The GCG Trust
Investment Division Investment Division
___________________________ ___________________________
<S> <S>
International Fixed Income Global Fixed Income
OTC Mid-Cap Growth
Research Research
Total Return Total Return
Value + Growth Value + Growth
Growth & Income Growth & Income
Money Market Liquid Asset
Advantage Limited Maturity Bond
Morgage-Backed Securities Limited Maturity Bond
</TABLE>
The remaining ten investment accounts are invested in specific portfolios,
four of which (Smith Barney Large Cap Value (formerly Smith Barney Income and
Growth), Smith Barney International Equity, Smith Barney High Income, and
Smith Barney Money Market) are invested in the Travelers Series Fund Inc.,
one of which (Appreciation) is invested in the Greenwich Street Series Fund
Inc. and five of which (Select High Growth, Select Growth, Select Balanced,
Select Conservative and Select Income) are invested in the Smith Barney
Concert Allocation Series Inc. These ten investment accounts and the Research,
Mid-Cap Growth and Total Return Accounts, which invest in The GCG Trust, are
available to Contractowners of the PrimElite Variable Annuity product.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the
Separate Account:
USE OF ESTIMATES: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
INVESTMENTS: Investments are made in shares of a Series or Portfolio of the
Trusts and are valued at the net asset value per share of the respective
Series or Portfolio of the Trusts. Investment transactions in each Series or
Portfolio of the Trusts are recorded on the trade date. Distributions of net
investment income and capital gains from each Series or Portfolio of the
Trusts are recognized on the ex-distribution date. Realized gains and losses
on redemptions of the shares of the Series or Portfolio of the Trusts are
determined on the specific identification basis.
FEDERAL INCOME TAXES: Operations of the Separate Account form a part of, and
are taxed with, the total operations of the Company which is taxed as a life
insurance company under the Internal Revenue Code. Earnings and realized
capital gains of the Separate Account attributable to the Contractowners are
excluded in the determination of the federal income tax liability of the
Company.
NOTE 3 - CHARGES AND FEES
Under the terms of the Contracts, certain charges are allocated to the
Contracts to cover the Company's expenses in connection with the issuance and
administration of the Contracts. Following is a summary of these charges:
MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGES: The Company is
compensated for mortality and expense risks and administrative costs by a
charge equivalent to an annual rate of 1.25% and 0.15%, respectively, of the
total net assets of each account.
ANNUAL CONTRACT CHARGES: An annual contract charge of $30 is deducted on
each Contract anniversary prior to the maturity date, upon full withdrawal of
a Contract's value or upon commencement of annuity payments if such
withdrawal is made or annuity payments commence on a date other than the
Contract anniversary.
OTHER CHARGES: A transfer charge computed as the lesser of 2% of the
Contract value transferred or $25 will be imposed on each transfer between
accounts in excess of twelve in any one calendar year. A withdrawal charge
may be imposed in the event of withdrawal of any portion of the contract
value or upon annuitization. The withdrawal charge is 8% of the amount
withdrawn prior to the first anniversary of any purchase payment and reduces
by 1% at each subsequent purchase payment anniversary.
PREMIUM TAXES: Premium taxes are deductible, where applicable, from the
purchase payment or Contract value. The amount and timing of the deduction
depend on the annuitant's state of residence and currently ranges up to 4% of
premiums.
NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were
as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998
____________________________
PURCHASES SALES
____________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Fully Managed Series $9,624 $1,355
Rising Dividends Series 51,527 19,952
Small Cap Series 8,246 2,656
Multiple Allocation Series 1,182 164
Hard Assets Series 425 19
Real Estate Series 385 82
All-Growth Series 781 388
Capital Appreciation Series 2,002 307
Value Equity Series 286 42
Strategic Equity Series 309 131
Growth Opportunities Series 2,664 2,473
Developing World Series 946 216
Mid-Cap Growth Series 44,788 15,656
Research Series 127,660 39,466
Total Return Series 72,857 4,635
Growth & Income Series 30,641 8,788
Value + Growth Series 29,385 11,589
Global Fixed Income Series 5,424 5,781
Limited Maturity Bond Series 51,261 7,010
Liquid Asset Series 87,725 54,227
Equi-Select Series Trust:
Money Market Portfolio 86,796 122,381
Mortgage-Backed Securities Portfolio 8,562 25,785
Advantage Portfolio 8,835 26,440
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Series 3,596 1,506
PIMCO StocksPLUS Growth and Income Series 12,759 6,790
Warburg Pincus Trust:
International Equity Portfolio 17,162 14,768
Travelers Series Fund Inc.:
Smith Barney Large Cap Value Portfolio 44,353 3,358
Smith Barney International Equity Portfolio 6,693 1,528
Smith Barney High Income Portfolio 9,275 2,435
Smith Barney Money Market Portfolio 30,717 34,501
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 44,307 843
Smith Barney Concert
Allocation Series Inc.:
Select High Growth Portfolio 18,596 1,315
Select Growth Portfolio 31,845 1,396
Select Balanced Portfolio 30,984 1,648
Select Conservative Portfolio 9,676 1,109
Select Income Portfolio 6,263 1,784
____________________________
COMBINED $898,537 $422,524
============================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1997
____________________________
PURCHASES SALES
____________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Fully Managed Series $8,852 $290
Rising Dividends Series 33,452 4,369
Small Cap Series 12,148 1,650
Multiple Allocation Series -- --
Hard Assets Series -- --
Real Estate Series -- --
All-Growth Series -- --
Capital Appreciation Series -- --
Value Equity Series -- --
Strategic Equity Series -- --
Growth Opportunities Series -- --
Developing World Series -- --
Mid-Cap Growth Series 55,386 12,742
Research Series 124,116 11,674
Total Return Series 79,757 1,933
Growth & Income Series 60,425 5,941
Value + Growth Series 45,481 4,478
Global Fixed Income Series 7,088 2,620
Limited Maturity Bond Series -- --
Liquid Asset Series -- --
Equi-Select Series Trust:
Money Market Portfolio 104,149 87,621
Mortgage-Backed Securities Portfolio 8,725 1,629
Advantage Portfolio 12,290 9,124
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Series -- --
PIMCO StocksPLUS Growth and Income Series -- --
Warburg Pincus Trust:
International Equity Portfolio 27,123 4,349
Travelers Series Fund Inc.:
Smith Barney Large Cap Value Portfolio 42,878 456
Smith Barney International Equity Portfolio 13,045 181
Smith Barney High Income Portfolio 11,885 804
Smith Barney Money Market Portfolio 32,473 23,622
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 23,837 69
Smith Barney Concert
Allocation Series Inc.:
Select High Growth Portfolio 20,498 356
Select Growth Portfolio 29,749 78
Select Balanced Portfolio 28,437 52
Select Conservative Portfolio 7,504 342
Select Income Portfolio 2,914 268
____________________________
COMBINED $792,212 $174,648
============================
</TABLE>
NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
Contractowners' transactions shown in the following table reflect gross
inflows ("Purchases") and outflows ("Sales") in units for each Account.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998
____________________________
PURCHASES SALES
____________________________
<S> <C> <C>
Fully Managed Account 415,506 65,524
Rising Dividends Account 2,298,686 924,156
Small Cap Account 618,642 193,209
Multiple Allocation Account 51,481 7,827
Hard Assets Account 25,039 1,191
Real Estate Account 15,745 4,199
All-Growth Account 60,683 35,292
Capital Appreciation Account 82,324 13,981
Value Equity Account 15,786 2,297
Strategic Equity Account 21,564 9,439
Growth Opportunities Account 270,682 263,087
Developing World Account 111,903 30,064
Mid-Cap Growth Account 1,879,776 780,588
Research Account 5,268,372 1,920,639
Total Return Account 3,511,941 259,576
Growth & Income Account 1,734,756 568,098
Value + Growth Account 1,765,516 815,520
Global Fixed Income Account 395,321 451,759
Limited Maturity Bond Account 3,039,891 411,898
Liquid Asset Account 6,141,878 3,803,497
Money Market Account 7,569,194 10,747,917
Mortgage-Backed Securities Account 611,798 2,038,976
Advantage Account 670,856 2,176,599
PIMCO High Yield Bond Account 355,691 154,763
PIMCO StocksPLUS Growth and Income Account 1,297,234 723,512
International Equity Account 1,634,599 1,373,413
Smith Barney Large Cap Value Account 2,168,737 168,260
Smith Barney International Equity Account 464,869 104,400
Smith Barney High Income Account 550,700 168,562
Smith Barney Money Market Account 2,711,312 3,083,869
Appreciation Account 2,735,366 47,380
Select High Growth Account 1,597,345 111,607
Select Growth Account 2,714,011 114,641
Select Balanced Account 2,654,996 128,467
Select Conservative Account 839,363 93,236
Select Income Account 549,282 155,185
____________________________
COMBINED 56,850,845 31,952,628
============================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1997
____________________________
PURCHASES SALES
____________________________
<S> <C> <C>
Fully Managed Account 445,585 15,573
Rising Dividends Account 1,786,818 225,115
Small Cap Account 1,013,794 128,770
Multiple Allocation Account -- --
Hard Assets Account -- --
Real Estate Account -- --
All-Growth Account -- --
Capital Appreciation Account -- --
Value Equity Account -- --
Stategic Equity Account -- --
Growth Opportunities Account -- --
Developing World Account -- --
Mid-Cap Growth Account 2,986,261 763,994
Research Account 6,629,166 633,673
Total Return Account 5,022,503 132,764
Growth & Income Account 3,939,022 468,665
Value + Growth Account 3,422,916 334,897
Global Fixed Income Account 511,014 213,732
Limited Maturity Bond Account -- --
Liquid Asset Account -- --
Money Market Account 9,788,350 8,382,113
Mortgage-Backed Securities Account 637,610 141,260
Advantage Account 988,376 805,145
PIMCO High Yield Bond Account -- --
PIMCO StocksPLUS Growth and Income Account -- --
International Equity Account 2,309,409 427,281
Smith Barney Large Cap Value Account 2,652,067 19,906
Smith Barney International Equity Account 939,196 10,039
Smith Barney High Income Account 935,447 61,286
Smith Barney Money Market Account 3,064,438 2,270,529
Appreciation Account 1,684,041 3,346
Select High Growth Account 1,899,205 32,872
Select Growth Account 2,774,943 7,330
Select Balanced Account 2,672,747 4,406
Select Conservative Account 702,940 31,706
Select Income Account 275,346 24,505
____________________________
COMBINED 57,081,194 15,138,907
============================
</TABLE>
NOTE 6 - NET ASSETS
Investments at net asset value at December 31, 1998 consisted of the
following:
<TABLE>
<CAPTION>
Fully Rising Small Multiple
Managed Dividends Cap Allocation
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $15,114 $58,409 $16,377 $926
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 1,842 5,788 632 88
Net unrealized appre-
ciation (depreciation)
of investments (941) 2,188 3,129 (56)
_______________________________________________________
$16,015 $66,385 $20,138 $958
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Hard Real All- Capital
Assets Estate Growth Appreciation
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $377 $270 $393 $1,555
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 26 18 (93) 131
Net unrealized appre-
ciation (depreciation)
of investments (62) (36) 92 (12)
_______________________________________________________
$341 $252 $392 $1,674
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Value Strategic Growth Developing
Equity Equity Opportunities World
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $240 $168 $204 $735
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 4 4 (134) (63)
Net unrealized appre-
ciation (depreciation)
of investments 3 1 3 (76)
_______________________________________________________
$247 $173 $73 $596
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap Total Growth &
Growth Research Return Income
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $97,913 $245,021 $181,334 $93,197
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 17,063 38,529 19,790 11,672
Net unrealized appre-
ciation (depreciation)
of investments 17,880 41,225 20,284 11,922
_______________________________________________________
$132,856 $324,775 $221,408 $116,791
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Global Limited
Value + Fixed Maturity Liquid
Growth Income Bond Asset
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $68,388 $10,906 $43,166 $32,951
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 7,156 1,338 1,229 547
Net unrealized appre-
ciation (depreciation)
of investments 10,433 147 (327) --
_______________________________________________________
$85,977 $12,391 $44,068 $33,498
=======================================================
</TABLE>
<TABLE>
<CAPTION>
PIMCO
PIMCO StocksPLUS Smith Barney
High Yield Growth and International Large Cap
Bond Income Equity Value
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $2,041 $5,860 $43,994 $101,814
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (34) (166) 1,901 3,597
Net unrealized appre-
ciation (depreciation)
of investments 19 680 (2,992) 14,115
_______________________________________________________
$2,026 $6,374 $42,903 $119,526
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Smith Barney Smith Barney Smith Barney
International High Money
Equity Income Market Appreciation
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $28,828 $24,396 $7,968 $68,170
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (382) 1,996 787 4,871
Net unrealized appre-
ciation (depreciation)
of investments 1,458 (215) -- 7,076
_______________________________________________________
$29,904 $26,177 $8,755 $80,117
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Select
High Select Select Select
Growth Growth Balanced Conservative
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $37,788 $60,486 $57,724 $15,688
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (151) (186) 223 169
Net unrealized appre-
ciation (depreciation)
of investments 3,679 5,655 3,318 470
_______________________________________________________
$41,316 $65,955 $61,265 $16,327
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Select
Income
Account Combined
_________________________
(Dollars in thousands)
<S> <C> <C>
Unit transactions $7,111 $1,329,512
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 152 118,344
Net unrealized appre-
ciation (depreciation)
of investments 124 139,184
_________________________
$7,387 $1,587,040
=========================
</TABLE>
NOTE 7 - UNIT VALUES
Accumulation unit value information for units outstanding as of December 31,
1998 was as follows:
<TABLE>
<CAPTION>
TOTAL UNIT
ACCOUNT UNITS UNIT VALUE VALUE
____________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
Fully Managed 779,994 $20.53 $16,015
Rising Dividends 2,936,233 22.61 66,385
Small Cap 1,310,457 15.37 20,138
Multiple Allocation 43,654 21.94 958
Hard Assets 23,848 14.28 341
Real Estate 11,546 21.74 252
All-Growth 25,391 15.43 392
Capital Appreciation 68,343 24.50 1,674
Value Equity 13,489 18.31 247
Strategic Equity 12,125 14.23 173
Growth Opportunities 7,595 9.65 73
Developing World 81,839 7.28 596
Mid-Cap Growth 5,924,179 22.43 132,856
Research 14,188,466 22.89 324,775
Total Return 12,496,442 17.72 221,408
Growth & Income 6,865,903 17.01 116,791
Value + Growth 5,276,364 16.29 85,977
Global Fixed Income 946,714 13.09 12,391
Limited Maturity Bond 2,627,993 16.77 44,068
Liquid Asset 2,338,381 14.33 33,498
PIMCO High Yield Bond 200,928 10.08 2,026
PIMCO StocksPLUS Growth and Income 573,722 11.11 6,374
International Equity 4,170,018 10.29 42,903
Smith Barney Large Cap Value 6,212,287 19.24 119,526
Smith Barney International Equity 2,094,601 14.28 29,904
Smith Barney High Income 1,927,035 13.58 26,177
Smith Barney Money Market 770,258 11.37 8,755
Appreciation 4,865,715 16.47 80,117
Select High Growth 3,352,071 12.33 41,316
Select Growth 5,366,983 12.29 65,955
Select Balanced 5,194,870 11.79 61,265
Select Conservative 1,417,361 11.52 16,327
Select Income 644,938 11.45 7,387
_____________ ______________
COMBINED 92,769,743 $1,587,040
============= ==============
</TABLE>
<PAGE>
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
A. FINANCIAL STATEMENTS
The following audited financial statements of the Company prepared in
accordance with statutory accounting practices for the years ended
December 31, 1998, 1997 and 1996 (as well as the auditors' report thereon)
are included in Part B hereof:
Audited Financial Statements:
1. Report of Independent Auditors
2. Balance Sheets - Statutory Basis - as of December 31, 1998 and 1997.
3. Statements of Operations - Statutory Basis - for the years ended
December 31, 1998, 1997, and 1996.
4. Statements of Changes in Capital and Surplus - Statutory Basis - for
the years ended December 31, 1998, 1997, and 1996.
5. Statements of Cash Flows - Statutory Basis - for the years ended
December 31, 1998, 1997, and 1996.
6. Notes to Financial Statements.
Schedules to Financial Statements - December 31, 1998:
Schedule I - Summary of Investments Other Than Investment in
Related Parties
Schedule III - Supplementary Insurance Information
Schedule IV - Reinsurance
All other schedules for which provision is made in the applicable accounting
regulations of the Securities and Exchange Commission are not required under
the related instructions or are inapplicable and therefore have been omitted.
The following financial statements of the Separate Account are included in
Part B hereof:
Audited Financial Statements:
1. Statements of Net Assets December 31, 1998.
2. Statement of Operations for the year ended December 31, 1998.
3. Statements of Changes in Net Assets for the years ended
December 31, 1998 and 1997.
4. Notes to Financial Statements.
B. EXHIBITS
1. Resolution of Board of Directors of the Company authorizing the
establishment of the Separate Account.**
2. Not Applicable.
3. Principal Underwriter's Agreement dated October 1, 1994 between
Equitable Life Insurance Company of Iowa on behalf of the Registrant
and Equitable of Iowa Securities Network, Inc.**
4. Individual Flexible Purchase Payment Deferred Variable Annuity
Contract.
5. Application Form.
6. (i) Copy of Restated Articles of Incorporation of the Company.*
(ii) Copy of the Restated Bylaws of the Company.*
7. Not Applicable.
8. (i) Form of Fund Participation Agreement between the Company and
Smith Barney/Travelers Series Fund, Inc.*
(ii) Form of Fund Participation Agreement between the Company
and Warburg Pincus Trust.***
(iii)Fund Participation Agreement between the Company and
Smith Barney Concert Allocation Series Inc.
(iv) Fund Participation Agreement between the Company and PIMCO
Variable Insurance Trust.
9. Opinion and Consent of Counsel.
10. Consent of Independent Auditors.
11. Not Applicable.
12. (i) Agreement Governing Initial Contribution to Equi-Select Series
Trust by Equitable Life Insurance Company of Iowa dated
September 15, 1994.**
(ii) Agreement Governing Contribution of Working Capital to
Equi-Select Series Trust by Equitable Life Insurance Company of
Iowa dated October 4, 1994.**
(iii) Agreement Governing Initial Contribution to Equi-Select Series
Trust by Equitable Life Insurance Company of Iowa dated March
20, 1996.**
(iv) Agreement Governing Contribution of Working Capital to
Equi-Select Series Trust by Equitable Life Insurance Company of
Iowa dated April 1, 1996.**
13. Performance Calculation Information
(i) SEC Standard Total Return Calculations for Money Market
SubAccounts****
(ii) Nonstandard Total Return Calculations****
(iii) SEC Standard Total Return Calculations for Non Money Market
SubAccounts and Yield Calculations for Money Market
SubAccounts***
* Incorporated by reference to Registrant's Post-Effective Amendment No. 3 as
filed electronically on February 9, 1996.
**Incorporated by reference to Registrant's Post-Effective Amendment No. 4 as
filed electronically on March 29, 1996.
***Incorporated by reference to Registrant's Post-Effective Amendment No. 5 as
filed electronically on January 31, 1997.
****Incorporated by reference to Registrant's Post-Effective Amendment No. 7 as
filed electronically on May 6, 1997.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
The following are the Executive Officers and Directors of the Company:
Name and Principal Position and Offices
Business Address with Depositor
- ------------------------ ----------------------------------------
R. Brock Armstong President
5780 Powers Ferry Road
Atlanta, GA 30327-4390
Thomas L. May Director, Executive Vice President, Chief
909 Locust Street Marketing Officer
Des Moines, Iowa 50309
James R. Mumford Director, General Counsel, Secretary,
909 Locust Street Assistant Treasurer
Des Moines, Iowa 50309
Christopher R. Welp Director and Senior Vice President
909 Locust Street
Des Moines, Iowa 50309
Jerome L. Sychowski Director, Senior Vice President and Chief
909 Locust Street Information Officer
Des Moines, Iowa 50309
Gary J. Walljasper Director and Vice President
909 Locust Street
Des Moines, Iowa 50309
Marvin W. Alexander Director and Vice President
909 Locust Street
Des Moines, Iowa 50309
Randy Von Fumetti Director, Senior Vice President and
909 Locust Street Chief Financial Officer
Des Moines, Iowa 50309
Devin L. Reimer Director and Vice President
909 Locust Street
Des Moines, Iowa 50309
Michael R. McCoy Director and Executive Vice President
909 Locust Street
Des Moines, Iowa 50309
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
All of the Company's outstanding stock is owned and controlled by ING. Various
companies and other entities controlled by ING may therefore be considered to
be under common control with the registrant or the Company. Such other companies
and entities, together with the identity of their controlling persons (where
applicable), are set forth on the following organizational chart.
The subsidiaries of ING Groep N.V. are included as Exhibit 16.
ITEM 27. NUMBER OF CONTRACT OWNERS
There are 19,061 qualified contract owners and 24,382 non-qualified contract
owners as of March 31, 1999.
ITEM 28. INDEMNIFICATION
The Restated Articles of Incorporation of the Company (Article VII)
provide, in part, that:
Section 1. In the manner and to the fullest extent permitted by the Iowa
Business Corporation Act as the same now exists or may hereafter be amended,
the Corporation shall indemnify directors, officers, employees and agents and
shall pay or reimburse them for reasonable expenses in any proceeding to which
said person is or was a party.
Section 2. A director of this Corporation shall not be personally liable to
the Corporation or its shareholders for monetary damages for breach of
fiduciary duty as a Director, except for liability (i) for any breach of any
duty of the Director of loyalty to the Corporation or its shareholders, (ii)
for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, (iii) for any transaction from which
the Director derived an improper personal benefit, or (iv) under Section
490.833 of the Iowa Business Corporation Act for assenting to or voting for an
unlawful distribution. If Chapter 490 of the Code of Iowa, is subsequently
amended to authorize corporate action further eliminating or limiting personal
liability of directors, then the liability of a director to the Corporation
shall be eliminated or limited to the fullest extent permitted by Chapter 490
of the Code of Iowa, as so amended. Any repeal or modification of the
provisions of this Article shall not adversely affect any right or protection
of a director of the Corporation existing at the time of such repeal or
modification.
The Restated Bylaws of the Company (Article VI, Section 2) provide that:
Any person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceedings, whether civil,
criminal, administrative or investigative (other than an action by or in the
right of the Corporation) by reason of the fact that he is or was a director,
officer, employee or agent of the Corporation, or is or was serving at the
request of the Corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or enterprise, shall be
indemnified to the following extent and under the following circumstances:
(a) In an action, suit or proceeding other than an action by or in the
right of the Corporation, such person shall be indemnified against expenses
(including attorney's fees), judgments, fines, and amounts paid in settlement
actually and reasonably incurred by him in connection with such action, suit
or proceeding if he acted in good faith and in a manner he reasonably believed
to be in the best interests of the Corporation, in the case of conduct in his
official capacity with the Corporation, or, in all other cases, at least not
opposed to the best interests of the Corporation, and, with respect to any
criminal action or proceeding, if he had no reasonable cause to believe his
conduct was unlawful. The termination of any action, suit or proceeding
judgment, order, settlement, conviction or upon a plea of nolo contendere or
its equivalent shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which he reasonably believed to be in or
not opposed to the best interests of the Corporation, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that his
conduct was unlawful.
(b) In an action, suit or proceedings by or in the right of the
Corporation, notwithstanding any provision precluding liability in the
Articles of Incorporation, such person shall nonetheless be indemnified
against expenses (including attorney's fees) actually and reasonably incurred
by him in connection with the defense or settlement of such action or suit if
he acted in good faith and in a manner he reasonably believed to be in the
best interests of the Corporation, in the case of conduct in his official
capacity with the Corporation, or, in all other cases, at least not opposed to
the best interests of the Corporation, except that no indemnification shall be
made in respect of any claim, issue or matter as to which such person shall
have been adjudged to be liable for negligence or misconduct in the
performance of his duty to the Corporation unless and only to the extent that
the court in which such action or suit was brought shall determine upon
application that, despite the adjudication of liability, but in view of all
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted directors and officers or controlling persons of the
Company pursuant to the foregoing, or otherwise, the Company has been advised
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Company of expenses
incurred or paid by a director, officer or controlling person of the Company
in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities
being registered, the Company 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.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) At present, Directed Services, Inc. ("DSI"), the Registrant's Distributor,
serves as principal underwriter for all contracts issued by Equitable Life
Insurance Company of Iowa. DSI is also the principal underwriter for Golden
American Life Insurance Company Separate Account A and Separate Account B,
First Golden American Life Insurance Company of New York Separate Account NY-B,
Alger Separate Account A of Golden American Life Insurance Company and The
GCG Trust.
(b) Directed Services, Inc. is the principal underwriter for the Contracts.
The following persons are the officers and directors of Directed Services, Inc.
The principal business address for each officer and director following is
1475 Dunwoody Drive, West Chester, PA 19380-1478, unless otherwise noted.
Name and Principal Positions and Offices
Business Address with Underwriter
- ------------------- ---------------------
James R. McInnis President
Barnett Chernow Director and Executive Vice President
Myle R. Tashman Director, Executive Vice President,
Secretary and General Coundel
R. Lawrence Roth Director
VESTAX Capital Corporation
1931 Georgetown Road
Hudeson, OH 44236
Stephen J. Preston Executive Vice President
Jodie Schult Treasurer
Equitable of Iowa Companies
909 Locust Street
Des Moines, IA 50309
David L. Jacobson Senior Vice President
(c)
1998 Net
Name of Underwriting Compensation
Principal Discounts and on Brokerage
Underwriter Commissions Redemption Commissions Compensation
----------- ----------- ---------- ----------- ------------
DSI $ 36,579,786 $0 $0 $0
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
Equitable Life Insurance Company of Iowa, under agreement with Golden American
Life Insurance Company, maintains physical possession of the accounts, books
or documents of the Separate Account required to be maintained by Section
31(a) of the Investment Company Act of 1940 and the rules promulgated
thereunder at 909 Locust Street, Des Moines, Iowa 50309 and 1475 Dunwoody
Drive, West Chester, PA 19380.
ITEM 31. MANAGEMENT SERVICES
Not Applicable.
ITEM 32. UNDERTAKINGS
a. Registrant hereby undertakes to file a post-effective amendment to
this registration statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement are never more than
sixteen (16) months old for so long as payment under the variable annuity
contracts may be accepted.
b. Registrant hereby undertakes to include either (1) as part of any
application to purchase a contract offered by the Prospectus, a space that an
applicant can check to request a Statement of Additional Information, or (2) a
postcard or similar written communication affixed to or included in the
Prospectus that the applicant can remove to send for a Statement of Additional
Information.
c. Registrant hereby undertakes to deliver any Statement of Additional
Information and any financial statement required to be made available under
this Form promptly upon written or oral request.
d. Equitable Life Insurance Company of Iowa ("Company") hereby
represents that the fees and charges deducted under the Contract described in
the Prospectus, in the aggregate, are reasonable in relation to the services
rendered, the expenses to be incurred and the risks assumed by the Company.
REPRESENTATIONS
The Company hereby represents that it is relying upon a No-Action Letter
issued to the American Council of Life Insurance dated November 28, 1988
(Commission ref. IP-6-88) and that the following provisions have been complied
with:
1. Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in each registration statement, including the
prospectus, used in connection with the offer of the contract;
2. Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in any sales literature used in connection with
the offer of the contract;
3. Instruct sales representatives who solicit participants to purchase
the contract specifically to bring the redemption restrictions imposed by
Section 403(b)(11) to the attention of the potential participants;
4. Obtain from each plan participant who purchases a Section 403(b)
annuity contract, prior to or at the time of such purchase, a signed statement
acknowledging the participant's understanding of (1) the restrictions on
redemption imposed by Section 403(b)(11), and (2) other investment
alternatives available under the employer's Section 403(b) arrangement to
which the participant may elect to transfer his contract value.
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant certifies that it meets the requirements of Securities
Act Rule 485(b) for effectiveness of this Registration Statement and has
caused this Registration Statement to be signed on its behalf in the City of
West Chester and Commonwealth of Pennsylvania on this 3rd day of May,
1999.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
Registrant
By: EQUITABLE LIFE INSURANCE COMPANY OF IOWA
By:
___________________________________________
R. Brock Armstrong, President*
By: EQUITABLE LIFE INSURANCE COMPANY OF IOWA
Depositor
By:
___________________________________________
R. Brock Armstrong, President*
By: /s/ Marilyn Talman
-----------------------
Marilyn Talman, Attorney-in-Fact
_______________________
* Executed by Marilyn Talman on behalf of those indicated pursuant
to Power of Attorney.
As required by the Securities Act of 1933, this Registration Statement has
been signed by the following persons in the capacities and on the dates
indicated.
Signature Title
- --------- -----
- ----------------------------
R. Brock Armstrong* President
- ----------------------------
Thomas L. May* Executive Vice President, Chief
Marketing Officer and Director
- ----------------------------
Christopher R. Welp* Director and Senior Vice President
- ----------------------------
Randy Von Fumetti* Director, Senior Vice President
and Chief Financial Officer
- ----------------------------
Gary Walljasper* Director and Vice President
- ----------------------------
James R. Mumford* Director, General Counsel, Secretary,
and Assistant Treasurer
- ----------------------------
Marvin W. Alexander* Director and Vice President
- ----------------------------
Jerome L. Sychowski* Director, Senior Vice President and
Chief Information Officer
- ----------------------------
Devin L. Reimer* Director and Vice President
- ----------------------------
Michael R. McCoy* Director and Executive Vice President
*By: /s/ Marilyn Talman
-------------------------------------
Marilyn Talman, Attorney-in-Fact
_______________________
* Executed by Marilyn Talman on behalf of those indicated pursuant
to Power of Attorney.
EXHIBITS
TO
POST-EFFECTIVE AMENDMENT NO. 10
TO
FORM N-4
FOR
EQUITABLE LIFE INSURANCE COMPANY OF IOWA SEPARATE ACCOUNT A
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
INDEX TO EXHIBITS
EXHIBIT PAGE
99.B4 Individual Flexible Purchase Payment Deferred Variable
Annuity Contract
99.B5 Application Form.
99.B8(iii) Fund Participation Agreement between the Company and
Smith Barney Concert Allocation Series Inc.
99.B8(iv) Fund Participation Agreement between the Company and PIMCO
Variable Insurance Trust.
99.B9 Opinion and Consent of Counsel
99.B10 Consent of Independent Auditors
99.B15 Powers of Attorney
99.B16 Subsidiaries of ING Groep N.V.
<PAGE> EXHIBIT 4
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
Annuity Service Center
P. O. Box 9271
Des Moines, Iowa 50306-9271
(800)344-6860
AMENDMENT TO COMPLY WITH SECTION 403(B) OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED
This Amendment is made at the request of the applicant for, or the Owner of,
the Contract. The intent of this Amendment is to qualify the Contract under
IRC Section 403(b).
The following provisions amend your Contract and take precedence over any
contrary provisions in the Contract to which this Amendment is attached.
(1) DEFINITIONS. Words and phrases used in the Contract have the same meaning
when used in this Amendment. The words shown below have the meanings stated.
(a) "IRC" means the United States Internal Revenue Code of 1986, as
amended from time to time.
(b) "EMPLOYEE OR ANNUITANT" means the person covered by the Contract.
(2) This Contract is nontransferable. Other than to us, it may not be sold,
assigned, discounted or pledged as collateral for a loan or as security for
the performance of an obligation or for any other purpose.
(3) This Contract is valid only if it is purchased:
(a) For an employee by an employer as described in IRC Section 501 (c)(3)
which is exempt from income tax under IRC Section 501(a); or
(b) For an employee who performs services for an educational organization
described in IRC Section 170(b)(1)(A)(ii) by an employer which is a state, a
political subdivision of a state or an agency or instrumentality of a state or
political subdivision thereof; or
(c) By an employee in a rollover or a direct transfer as permitted by IRC
Sections 403(b)(8), 403(b)(10), and 408(d)(3).
(4) The Purchase Payments applicable to this Contract must be attributable to
the employee's salary reduction agreement, or to permitted employer
contributions, except in the case of a rollover contribution or a direct
transfer by an employee [as permitted by IRC Section 403(b)(8), 403(b)(10),
and 408(d)(3).] The Purchase Payment must be in cash. The total of such
Purchase Payments cannot exceed the lesser of:
(a) $9,500; or
(b) the exclusion allowance described in IRC Section 403(b)(2), as
amended, for any taxable year and in no event, exceeding any limits set forth
in IRC Sections 401 (a)(30), 402(g), 403(b)(2), and 415. Premiums may be
refunded when necessary to comply with IRC Section 403(b).
(5) Distribution of the assets of this Contract may not be made before the
Annuitant:
(a) Attains age 59 1/2; or
(b) Separates from service; or
(c) Dies; or
(d) Becomes disabled.
In the case of financial hardship, distributions of premiums paid (not
earnings) may be made before (a), (b), (c), or (d) above.
(6) Notwithstanding any provision of this Amendment to the contrary, the
distribution of an individual's interest shall be made under the minimum
distribution requirements of IRC Section 403(b)(10) including:
(a) Any regulations under that Section; and
(b) The incidental death benefit provisions of IRC Section 401(a)(9) and
any regulations under that Section.
The above Sections and regulations are incorporated by reference.
(7) The Annuitant's entire interest in the account must be distributed, or
begin to be distributed, by the Annuitant's required beginning date. The
Annuitant's required beginning date is the April 1st following the calendar
year in which the Annuitant reaches age 70 1/2. (For Annuitants covered by the
governmental or church plans, the required beginning date is the later of: (a)
April 1st of the calendar year after the attainment of age 70 1/2; or (b)
April 1st following the calendar year of retirement.) For each succeeding
year, a distribution must be made on or before December 31st. By the required
beginning date the Annuitant may elect to have the balance in the account
distributed in one of the following forms:
(a) To the Annuitant of this Contract in one sum; or
(b) To the Annuitant as a life annuity (which may provide for a minimum
term certain period not extending beyond the life expectancy of the
Annuitant); or
(c) To the Annuitant and the Annuitant's designated beneficiary, as a
joint and survivor annuity (which may provide for a minimum term certain
period not extending beyond the life expectancy of the Annuitant and his or
her designated beneficiary) in equal or substantially equal amounts: or
(d) To the Annuitant as an annuity certain not extending beyond the life
expectancy of the Annuitant: or
(e) If the Annuitant has a living designated beneficiary, to the
Annuitant as an annuity certain not extending beyond the joint life expectancy
of the Annuitant and the Annuitant's designated beneficiary in equal or
substantially equal amounts.
If the Annuitant's entire interest is to be distributed in a manner other than
that set forth in (a) above, then the minimum distribution that must be made
each year will be determined by dividing the Annuitant's entire interest by
his or her life expectancy. In the case of (c) above, the entire interest will
be divided by the joint and last survivor expectancy of the Annuitant and his
or her designated beneficiary.
If the Annuitant's designated beneficiary is someone other than his or her
spouse, then the minimum distribution which must be made each year will be not
less than the amount obtained by dividing his or her entire interest by the
joint and last survivor expectancy of the Annuitant and the Annuitant's
designated beneficiary, whose life expectancy in making the calculation shall
not be more than 10 years less than the Annuitant.
Life expectancy and joint and last survivor expectancy are computed by use of
the return multiples contained in Section 1.72-9 of the IRC Regulations. For
this computation, the Annuitant's life expectancy (and the life expectancy of
his or her spouse) may be recalculated, but no more frequently than annually.
The life expectancy of a non-spouse designated beneficiary may not be
recalculated.
(8) With respect to any amount, which upon the death of the Annuitant, becomes
payable under any supplementary contract issued in exchange for this Contract,
no provision of this Contract or such supplementary contract shall be
applicable to the extent that it permits or provides for settlement of such
amount in any manner other than as set forth in (a) or (b) below:
(a) If the Annuitant dies after distribution of his or her interest has
commenced, the remaining portion of such interest will continue to be
distributed at least as rapidly as under the method of distribution being used
prior to the Annuitant's death.
(b) If the Annuitant dies before distribution of his or her interest
commences, the Annuitant's entire interest will be distributed in accordance
with one of the following provisions:
(i) The Annuitant's entire interest will be paid in one sum by
December 31 of the fifth (5th) year after the date of his or her death; or in
a series of payments which will be completed by December 31 of the fifth (5th)
Year after the date of his or her death.
(ii) If the Annuitant's interest is payable to a beneficiary
designated by the Annuitant, and the Annuitant has not elected (i) above, then
the entire interest will be distributed in substantially equal installments
over the life or life expectancy of the designated beneficiary. Distribution
must begin no later than December 31 of the year following the year the
Annuitant dies.
(iii) If the designated beneficiary of the Annuitant is his or her
surviving spouse, distribution must begin by December 31 of the later of:
(a) The year immediately following the year the Annuitant dies; or
(b) The year in which the Annuitant would have attained age 70 1/2.
Payments can be received over the life or life expectancy of the
surviving spouse.
For purposes of the above, payments will be calculated by use of the return
multiples specified in Section 1.72-9 of the IRC Regulations. Life expectancy
of a surviving spouse may be recalculated annually. In the case of any other
designated beneficiary, life expectancy will be recalculated at the time
payment first commences. Payments for each subsequent 12-consecutive month
period will be based on such life expectancy minus the number of whole years
passed since distribution first commenced.
For purposes of this requirement, any amount paid to a child of the Annuitant
will be treated as if it had been paid to the surviving spouse if the
remainder of the interest becomes payable to the surviving spouse when the
child reaches the age of majority.
(9) This paragraph applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of this Contract to the contrary that would
otherwise limit an Annuitant's election under this Contract, an Annuitant may
elect, at any time and in the manner prescribed by us, but subject to the
distribution restrictions of paragraph 5, to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan specified
by the Annuitant in a direct rollover.
For the purpose of this paragraph, the following definitions apply:
(a) Eligible Rollover Distribution is any distribution of all or any
portion of the balance to the credit of the Annuitant, not including:
(i) Any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life or
life expectancy of the Annuitant or the joint lives or joint life expectancies
of the Annuitant and the Annuitant's designated beneficiary, or for a
specified period of ten years or more: or
(ii) Any distribution to the extent such distribution is required
under IRC Sections 401 (a)(9) or 403(b)(10); and
(iii) The portion of any distribution that cannot be included in
gross income.
(b) Eligible Retirement Plan is:
(i) An annuity described in IRC Section 403(b);
(ii) An individual retirement account described in IRC Section 408(a);
or
(iii) An individual retirement annuity described in IRC Section
408(b).
However, in the case of an Eligible Rollover Distribution to the surviving
spouse, an eligible retirement plan is (ii) or (iii) above.
(c) Direct Rollover is payment by us to the Eligible Retirement Plan
specified by the Annuitant.
(d) Annuitant, for the purposes of this paragraph, includes the
Annuitant's surviving spouse and the Annuitant's spouse or former spouse who
is an alternate payee under a qualified domestic relations order, as defined
in IRC Section 414(p).
(10) This Contract shall be for the exclusive benefit of the Annuitant or his
or her beneficiary. The Annuitant's rights under this Contract shall be
nonforfeitable.
(11) We may amend this Contract to conform to the provisions of the IRC,
Internal Revenue Regulations or published Internal Revenue Rulings. We will
send a copy of such amendment to you. It will be mailed to the last post
office address known to us.
(12) Effective for years beginning after December 31, 1988, except in the
case of a Contract purchased by a church, no premium payments applicable to
this contract can be made unless all employees of the employer may elect to
have the employer make contributions of more than $200 under a salary
reduction agreement.
For purposes of this paragraph any employee who is a participant in (a),
(b) or (c) below may be excluded.
(a) An eligible deferred compensation plan under IRC Section 457;
(b) A qualified cash or deferred arrangement; or
(c) Another IRC Section 403(b) annuity contract.
In addition, any nonresident aliens and students who normally work less
than twenty (20) hours per week may be excluded.
The issue date (effective date) of this amendment is the Contract Issue Date
unless another date is shown.
Signed for EQUITABLE LIFE INSURANCE COMPANY OF IOWA
_______________________
President
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
Annuity Service Center
P.O. Box 9271
Des Moines, Iowa 50306-9271
(800) 344-6860
WAIVER OF WITHDRAWAL CHARGE
This Rider is made a part of the Contract when listed on the Data Page.
If, after the Effective Date of this Rider, the Annuitant is hospitalized
and/or confined to an Eligible Nursing Home for 30 consecutive days, you may
make a total or partial withdrawal without incurring a Withdrawal Charge.
Such withdrawal must be made no later than the sixtieth (60) day following the
last day of a qualifying period of confinement. We will require proof of
confinement in a form satisfactory to us. Part of the proof may be
certification by a licensed physician.
DEFINITIONS
An ELIGIBLE NURSING HOME is an institution or special nursing unit of a
hospital. It must meet at least one of the following requirements:
(1) Be Medicare approved as a provider of skilled nursing care services; or
(2) Be licensed and operated to provide skilled nursing care, intermediate
nursing care, or custodial nursing care by the state in which it is located:
or
(3) Meet all the requirements listed below:
(a) Be licensed to operate as a nursing home by the state in which it is
located;
(b) Have as a main function, the provision of skilled, intermediate, or
custodial nursing care;
(c) Be engaged in providing continuous room and board accommodations to 3
or more persons;
(d) Be under the supervision of a Licensed Vocational Nurse (LVN) or a
nurse of comparable qualifications: and
(e) Maintain a daily medical record of each patient.
QUALIFYING PERIOD OF CONFINEMENT is confinement in a hospital and/or an
Eligible Nursing Home for 30 consecutive days.
NOTICE OF CLAIM
Written notice of claim must be given to us within 30 days following the last
day of a qualifying period of confinement. If notice cannot be given to us
within 30 days, it must be given as soon as reasonably possible. Notice will
be sufficient if it identifies the Annuitant and is sent to our Annuity
Service Center.
CLAIM FORMS
We will supply claim forms within 15 days after receiving notice of claim. If
such forms are not supplied within that time, written proof of claim may be
made without using our forms.
TIME PAYMENT OF CLAIMS
Benefits payable under this Rider will be paid as soon as we receive proper
written proof of claim.
PAYMENT OF CLAIMS
The portion of the Contract Value that is surrendered will be paid in a lump
sum to you.
LEGAL ACTIONS
No legal action may be brought to recover on this benefit until 60 days after
written proof of claim has been given as required by this Rider.
TAX IMPLICATIONS
Receipt of any portion of the Contract Value may be taxable. You should
consult with your personal tax advisor.
GENERAL PROVISIONS
There is no cost associated with this Rider. The provisions of the Contract
are made a part of this Rider except as changed by this Rider. All other
terms, provisions, and conditions of the Contract remain unchanged except as
provided by this Rider. In the event of a conflict between this Rider and the
Contract, the provisions of this Rider will control.
EFFECTIVE DATE
The Effective Date of this Rider is the Effective Date of the Contract shown
on the Contract Data Page unless a later date is shown on the Contract Data
Page.
Signed for EQUITABLE LIFE INSURANCE COMPANY OF IOWA.
_____________________
President
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
EXECUTIVE OFFICE
P.O. Box 9271
Des Moines, Iowa 50306-9271
(800)344-6860
UNISEX AMENDMENT RIDER
The policy to which this amendment is attached is amended by deleting all
reference to "sex" and by amending the Table which shows the Minimum Amount of
Each Installment Per $1,000 of Proceeds for Plan C as shown below.
MINIMUM AMOUNT OF EACH INSTALLMENT PER $1,000 OF PROCEEDS FOR PLAN C
ANNUAL INSTALLMENT GUARANTEED PERIOD
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
AGE OF AGE OF
PAYEE LIFE 10 YRS 20 YRS PAYEE LIFE 10 YRS 20 YRS
45 4.08 4.06 4.00 63 5.69 5.53 5.04
46 4.14 4.11 4.05 64 5.85 5.66 5.10
47 4.19 4.17 4.09 65 6.01 5.79 5.16
48 4.25 4.23 4.14 66 6.19 5.93 5.22
49 4.32 4.29 4.19 67 6.37 6.07 5.28
50 4.38 4.35 4.24 68 6.57 6.23 5.34
51 4.45 4.41 4.30 69 6.79 6.38 5.39
52 4.52 4.48 4.35 70 7.02 6.54 5.44
53 4.60 4.55 4.41 71 7.26 6.71 5.48
54 4.68 4.63 4.47 72 7.52 6.88 5.52
55 4.77 4.71 4.53 73 7.80 7.05 5.56
56 4.86 4.80 4.59 74 8.10 7.22 5.59
57 4.96 4.88 4.65 75 8.41 7.40 5.62
58 5.06 4.98 4.71 76 8.76 7.58 5.65
59 5.17 5.08 4.78 77 9.12 7.76 5.67
60 5.29 5.18 4.84 78 9.52 7.93 5.69
61 5.41 5.29 4.91 79 9.94 8.11 5.70
62 5.55 5.41 4.97 80 10.40 8.28 5.71
</TABLE>
This amendment is a part of your policy. Its issue date (effective date) is
the policy date.
Signed for EQUITABLE LIFE INSURANCE COMPANY OF IOWA
_____________________
President
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
ANNUITY SERVICE CENTER
P.O. Box 9271
Des Moines, Iowa 50306-9271
(800)344-6860
INDIVIDUAL RETIREMENT ANNUITY AMENDMENT
The following language amends and takes precedence over contrary language in
the Contract to which it is attached.
(1) DEFINITIONS. Words and phrases used in the Contract have the same meaning
when used in this Amendment. The words shown below have the meanings stated.
(a) IRC or CODE means the Internal Revenue Code of 1986 as amended and
all rules and regulations thereunder.
(b) CONTRACT means the policy or contract to which this amendment is
attached.
(c) OWNER means the person ("insured" or "annuitant") covered by the
contract.
(2) This Contract is nontransferable. Other than to us, it may not be sold,
assigned, discounted or pledged as collateral for a loan, or as security for
the performance of an obligation or for any other purpose.
(3) The premiums applicable to this Contract will be applied to accumulate a
retirement saving fund for the annuitant/owner.
(4) Except in the case of a rollover contribution (as permitted by IRC Section
402(c), 403(a)(4), 403(b)(8) or 408(d)(3), or a contribution made in
accordance with the terms of a Simplified Employee Pension Program (SEP) as
described in IRC Section 408(k):
(a) All contributions should be in cash; and
(b) The total of all contributions will not exceed $2,000 for any taxable
year.
Any refund of premiums (other than those attributable to excess
contributions) will be applied before the close of the calendar year following
the year of the refund towards the payment of future premiums or the purchase
of additional benefits.
(5) All distributions made under this Contract shall be made in accordance
with the requirements of IRC Section 401 (a)(9), including the incidental
death benefit requirements of IRC Section 401 (a)(9)(G), and the regulations
thereunder, including the minimum distribution incidental benefit requirement
of Section 1.401 (a)(9)-2 of the Proposed Treasury Regulations.
(6) The Owner's entire interest in the account must be distributed, or begin
to be distributed, by the Owner's required beginning date. The Owner's
required beginning date is the April 1 following the calendar year in which
the Owner reaches age 70 1/2. For each succeeding year, a distribution must be
made on or before December 31. By the required beginning date the Owner may
elect to have the balance in the Contract distributed in one of the following
forms:
(a) A single sum payment;
(b) Equal or substantially equal payments over the life of the Owner;
(c) Equal or substantially equal payments over the lives of the Owner and
his or her designated beneficiary:
(d) Equal or substantially equal payments over a specified period that
may not be longer than the Owner's life expectancy:
(e) Equal or substantially equal payments over a specified period that may
not be longer than the joint life and last survivor life expectancy of the
Owner and his or her designated beneficiary.
If the Owner's entire interest is to be distributed in a manner other than
6(a), the required annual minimum distribution will be (a) divided by (b)
where:
(a) Is the Owner's entire interest; and
(b) is his or her life expectancy.
If the Owner's entire interest is to be distributed under 6(c), that interest
will be divided by the joint and last survivor expectancy of the Owner and his
or her designated beneficiary.
If the Owner's beneficiary is someone other than his or her spouse, then the
minimum distribution which must be made each year will be not less than (a)
divided by (b) where:
(a) Is the Owner's entire interest; and
(b) Is the joint and last survivor expectancy of the Owner and the
designated beneficiary. If the designated beneficiary is more than ten years
younger than the Owner, the age to use for the designated beneficiary in
making the calculation shall be the Owner's age less 10 years.
Payments must be made in periodic payments at intervals of no longer than one
year.
Life expectancy is computed by use of the expected return multiples in Tables
V and Vl of Treasury Regulations Section 1.72-9. Unless otherwise elected by
the Owner by the time distributions are required to begin, life expectancies
shall be recalculated annually. Such election shall be irrevocable by the
Owner and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will
be calculated using the attained age of such beneficiary during the calendar
year in which the beneficiary attains age 70 1/2, and payments for subsequent
years shall be calculated based on such life expectancy reduced by one for
each calendar year which has elapsed since the calendar year life expectancy
was first calculated.
If the Owner's spouse is not the designated beneficiary, the method of
distribution selected must assure that at least 50% of the present value of
the amount available for distribution is paid within the life expectancy of
the Owner.
(7) No provision of this Contract or any supplementary contract issued upon
the death of the Owner in exchange for this Contract will apply where it
permits or provides for settlement of such amount in any manner other than as
noted in "a" or "b" below:
(a) If the Owner dies on or after distributions have begun under Section
6, the entire remaining interest must be distributed at least as rapidly as
provided under the method of distribution being used before the Owner's death.
(b) If the Owner dies before distributions have begun under Section 6,
the entire remaining interest must be distributed as elected by the Owner. If
the Owner has not made an election, the beneficiary or beneficiaries may elect
a method of distribution as follows:
(1) By December 31 of the year containing the fifth anniversary of the
Owner's death; or
(2) In equal or substantially equal payments over the life or life
expectancy of the designated beneficiary or beneficiaries starting by December
31st of the year following the year of the Owner's death. If the beneficiary
is the Owner's surviving spouse, distribution is not required to begin before
December 31st of the year in which the Owner would have turned 70 1/2 .
(3) If the designated beneficiary is the Owner's surviving spouse, the
spouse may treat the Contract as his or her own individual retirement
arrangement (IRA). This election will be deemed to have been made if the
spouse:
(i) Makes a regular IRA contribution to the Contract;
(ii) Makes rollover to or from such Contract; or
(iii) Fails to elect any of the above provisions.
Life expectancy is computed by use of the expected return multiples in Tables
V and Vl of Section 1.72-9 of the Treasury Regulations. For purposes of
distributions beginning after the Owner's death, unless otherwise elected by
the surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be
irrevocable by the surviving spouse and shall apply to all subsequent years.
In the case of any other designated beneficiary, life expectancies shall be
calculated using the attained age of such beneficiary during the calendar year
in which distributions are required to begin pursuant to this section, and
payments for any subsequent calendar year shall be calculated based on such
life expectancy reduced by one for each calendar year which has elapsed since
the calendar year life expectancy was first calculated.
Distributions under this section are considered to have begun if distributions
are made on account of the individual reaching his or her required beginning
date or if prior to the required beginning date distributions irrevocably
commence to an individual over a period permitted and in an annuity form
acceptable under Section 1.401 (a)(9) of the Treasury Regulations.
(8) This Contract will be for the exclusive benefit of the Owner or his or her
beneficiary. The entire interest of the annuitant in this Contract will be
nonforfeitable.
(9) We will furnish annual calendar year reports concerning the status of this
Contract.
(10) We may amend this Contract to conform to the provisions of the IRC,
Internal Revenue Regulation or published Internal Revenue Rulings.
(11) Termination of the Contract may occur if:
(a) No premiums have been received for two full consecutive policy years;
and
(b) the paid up annuity benefit at maturity would be less than $20 per
month.
(12) The 20 Day Right To Examine And Return This Contract provision on the
cover of this Contract is modified by substituting the words "initial premium"
for the words "Contract Value."
The Issue Date of this amendment is the Contract Issue Date unless another
date is shown.
Signed for EQUITABLE LIFE INSURANCE COMPANY OF IOWA.
____________________
President
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
DES MOINES, IOWA
Annuity Service Center
P.O. Box 9271
Des Moines, IA 50306-9271
(800)344-6860
In this Contract, "you" or "your" will refer to the Owner, and "we," "our,"
and "us" will refer to Equitable Life Insurance Company of Iowa.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA (THE "COMPANY") WILL PAY THE BENEFITS
OF THIS CONTRACT ACCORDING TO THE TERMS OF THIS CONTRACT.
This Contract is issued in return for the payment of the initial Purchase
Payment.
20 DAY RIGHT TO EXAMINE AND RETURN THIS CONTRACT
READ YOUR CONTRACT CAREFULLY. THE CONTRACT IS A LEGAL CONTRACT BETWEEN YOU,
THE OWNER, AND US, THE COMPANY.
WITHIN 20 DAYS OF THE DATE OF RECEIPT OF THIS CONTRACT BY THE OWNER, IT MAY BE
RETURNED BY DELIVERING OR MAILING IT TO THE COMPANY AT ITS ANNUITY SERVICE
CENTER. WHEN THE CONTRACT IS RECEIVED AT OUR ANNUITY SERVICE CENTER, WE WILL
REFUND THE CONTRACT VALUE TO THE OWNER, AS OF THE DATE OF CANCELLATION, WITH
ANY ADJUSTMENT REQUIRED BY APPLICABLE LAW OR REGULATION. THEREAFTER, THE
CONTRACT WILL BE DEEMED VOID AS OF ITS ISSUE DATE.
The Contract is signed for the Company as of its Issue Date (Effective Date).
___________________ _____________________
Secretary President
MATURITY PROCEEDS, WITHDRAWAL VALUES, AND THE DEATH PROCEEDS PROVIDED BY THIS
CONTRACT, WHEN BASED ON INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT, ARE
VARIABLE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
THE VARIABLE PROVISIONS OF THIS CONTRACT CAN BE FOUND IN SECTIONS 3 AND 4.
FLEXIBLE PREMIUM VARIABLE DEFERRED ANNUITY CONTRACT
NONPARTICIPATING
MATURITY PROCEEDS PAYABLE AT MATURITY DATE.
DEATH PROCEEDS PAYABLE IN EVENT OF ANNUITANT'S DEATH PRIOR TO MATURITY DATE.
TABLE OF CONTENTS
1. GENERAL DEFINITIONS
2. PURCHASE PAYMENTS
3. CONTRACT VALUE PROVISION
3.1 CONTRACT VALUE
3.2 ANNUAL CONTRACT
MAINTENANCE CHARGE
4. SEPARATE ACCOUNT PROVISIONS
4.1 THE SEPARATE ACCOUNT
4.2 INVESTMENTS OF THE
SEPARATE ACCOUNT
4.3 VALUATION OF ASSETS
4.4 ACCUMULATION UNIT
4.5 MORTALITY AND EXPENSE
RISK CHARGE
4.6 ADMINISTRATIVE CHARGE
4.7 SEPARATE ACCOUNT VALUE
5. FIXED ACCOUNT VALUE
6. TRANSFER PROVISION
7. WITHDRAWAL PROVISIONS
7.1 WITHDRAWAL
7.2 WITHDRAWALS WITHOUT
CHARGE
8. CONTRACT PROCEEDS
8.1 MATURITY PROCEEDS
8.2 DEATH PROCEEDS
8.3 DEATH OF ANNUITANT
8.4 DEATH OF OWNER
9. FIXED PAYMENT PLANS
9.1 PLAN A. INTEREST
9.2 PLAN B. FIXED PERIOD
9.3 PLAN C. LIFE INCOME
10. SUSPENSION OR DEFERRAL OF
PAYMENTS
11. OWNER, ASSIGNMENT,
BENEFICIARY, PROVISIONS
11.1 OWNER
11.2 ASSIGNMENT
11.3 BENEFICIARY
11.4 SIMULTANEOUS DEATH OF
BENEFICIARY AND
ANNUITANT
12. GENERAL TERMS
12.1 YOUR CONTRACT
12.2 LIMITS ON CONTESTING
THIS CONTRACT
12.3 VALID RELEASE FOR
PAYMENT
12.4 OPTION TO CHANGE
MATURITY DATE
12.5 REPORTS
12.6 MISTAKE OF AGE OR SEX
12.7 NONPARTICIPATING
12.8 PROTECTION OF PROCEEDS
12.9 TAXES
12.10 MODIFICATION
DATA PAGE
ANNUITANT: [John Doe] AGE AT ISSUE: [35]
OWNER: [John Doe]
CONTRACT NUMBER: [12345] ISSUE DATE: [4/1/93]
MATURITY DATE: [4/01/2023]
PURCHASE PAYMENTS:
[INITIAL PURCHASE PAYMENT: $10,000]
[MINIMUM SUBSEQUENT PURCHASE PAYMENT: $2,000]
[MAXIMUM SUBSEQUENT PURCHASE PAYMENT: $500,000]
[MAXIMUM TOTAL PURCHASE PAYMENT: $ 1 Million]
ANNUAL CONTRACT MAINTENANCE CHARGE:
[$30.00 each Contract Year prior to Maturity Date.]
MORTALITY AND EXPENSE RISK CHARGE:
[Equal on an annual basis to 1.25% of the average daily net asset value of the
Separate Account.]
ADMINISTRATIVE CHARGE:
[Equal on an annual basis to .15% of the average daily net asset value of the
Separate Account.]
TRANSFERS:
FREE TRANSFERS:
[12 per Contract Year]
TRANSFER FEE: [Lesser of: (1 ) 2% of Contract Value transferred; or (2) an
amount not greater than $25.]
MINIMUM CONTRACT VALUE TO BE TRANSFERRED:
[$100 or the Owner's entire interest in the Subaccount or the Fixed Account,
if less.]
MINIMUM CONTRACT VALUE WHICH MUST REMAIN IN A SUBACCOUNT OR FIXED ACCOUNT
AFTER A TRANSFER:
[$100]
WITHDRAWALS:
WITHDRAWAL CHARGE: [A withdrawal charge may be deducted in the event of a
withdrawal of all or a portion of the Contract Value. The Withdrawal Charge
Percentages are based upon the number of Purchase Payment Anniversaries that
Purchase Payments have remained in the Contract before being withdrawn.]
TABLE OF WITHDRAWAL CHARGES:
<TABLE>
<CAPTION>
<S> <C>
PURCHASE PAYMENT
ANNIVERSARY WITHDRAWAL CHARGE
- - ---------------- -------------------------------------
[1 8% of the Purchase Payment withdrawn]
[2 7% of the Purchase Payment withdrawn]
[3 6% of the Purchase Payment withdrawn]
[4 5% of the Purchase Payment withdrawn]
[5 4% of the Purchase Payment withdrawn]
[6 3% of the Purchase Payment withdrawn]
[7 2% of the Purchase Payment withdrawn]
[8 1% of the Purchase Payment withdrawn]
[9 and after 0%]
</TABLE>
MINIMUM PARTIAL WITHDRAWAL: [$100 or the Owner's entire interest in the
subaccount or the Fixed Account, if less.]
MINIMUM CONTRACT VALUE WHICH MUST REMAIN IN A SUBACCOUNT OR THE FIXED ACCOUNT
AFTER A PARTIAL WITHDRAWAL: [$100]
INVESTMENT OPTIONS:
[CAPITAL APPRECIATION]
[DEVELOPING WORLD]
[EQUITY INCOME]
[FULLY MANAGED]
[GLOBAL FIXED INCOME]
[GROWTH & INCOME]
[GROWTH]
[HARD ASSET]
[LIMITED MATURITY BOND]
[LIQUID ASSETS]
[MID-CAP GROWTH]
[REAL ESTATE]
[RESEARCH]
[SMALL CAP]
[STRATEGIC EQUITY]
[TOTAL RETURN]
[VALUE EQUITY]
[HIGH YIELD BOND]
[STOCKSPLUS GROWTH AND INCOME]
[INTERNATIONAL EQUITY]
SEPARATE ACCOUNT: [Separate Account A]
1. GENERAL DEFINITIONS
ACCUMULATION PERIOD - The period during which Purchase Payments may be made
prior to the Maturity Date.
ACCUMULATION UNIT - A unit of measure used to calculate the Contract Value in
a Subaccount of the Separate Account prior to the Maturity Date.
AGE - The Annuitant's age on his or her last birthday.
ANNUITANT - The natural person on whose life Annuity Payments are based. The
Annuitant is shown on the Data Page.
ANNUITY PAYMENTS - The series of payments after the Maturity Date under the
Payment Plan selected.
BENEFICIARY - The person you, as Owner, have chosen to receive the Proceeds on
the Annuitant's death, as shown in our records. There may be different classes
of Beneficiaries, such as primary and contingent. These classes set the order
of payment. There may be more than one Beneficiary in a class.
COMPANY - Equitable Life Insurance Company of Iowa.
CONTRACT ANNIVERSARY - An anniversary of the Issue Date of the Contract.
CONTRACT YEAR - One year from the Issue Date and from each Contract
Anniversary.
FIXED ACCOUNT - The Company's general investment account which contains all
the assets of the Company with the exception of the Separate Account and other
segregated asset accounts.
INVESTMENT OPTION - An investment entity the Company may make available from
time to time.
ISSUE DATE/DATE OF ISSUE - The effective date of the Contract. The Issue Date
is shown on the Data Page.
MATURITY DATE - The date on which Annuity Payments begin. The Maturity Date is
shown on the Data Page unless changed as provided under Section 12.4.
OWNER - The person who owns the Contract, as shown in our records. The Owner
may be someone other than the Annuitant.
PORTFOLIO - A segment of an Investment Option which constitutes a separate and
distinct class of shares.
PROCEEDS - Proceeds are the amounts payable under this Contract.
PURCHASE PAYMENT - An amount paid to the Company to provide benefits under
this Contract. A Purchase Payment does not include transfers between the
Separate Account and the Fixed Account or among Subaccounts.
PURCHASE PAYMENT ANNIVERSARY - The anniversary of a Purchase Payment.
SEPARATE ACCOUNT - A separate investment account of the Company designated on
the Data Page.
SUBACCOUNT - A segment of the Separate Account representing an investment in
an Investment Option.
VALUATION DATE - The Separate Account will be valued each day that the New
York Stock Exchange and our Annuity Service Center both are open for business.
VALUATION PERIOD - The period beginning at the close of business of the New
York Stock Exchange on each Valuation Date and ending at the close of business
for the next succeeding Valuation Date.
2. PURCHASE PAYMENTS
The initial Purchase Payment is due on the Issue Date. There is no Contract
until the initial Purchase Payment is paid. If any check presented as payment
of any part of the initial Purchase Payment for this Contract is not honored,
this Contract is void.
The allocation of the initial Purchase Payment is made in accordance with the
selection made by the Owner. Unless otherwise changed by the Owner, subsequent
Purchase Payments are allocated in the same manner as the initial Purchase
Payment. Allocation of the Purchase Payments is subject to the terms and
conditions imposed by the Company.
The minimum and maximum subsequent Purchase Payments are shown on the Data
Page. The total amount of purchase payments is subject to the Maximum Total
Purchase Payment shown on the Data Page. The Company reserves the right to
reject any Purchase Payment.
3. CONTRACT VALUE PROVISION
3.1 CONTRACT VALUE - The Contract Value, at any time, is the sum of:
(1) The Fixed Account Value; and
(2) The Separate Account Value.
The Separate Account Value will vary daily with the performance of the
Subaccounts of the Separate Account, any Purchase Payments paid, partial
withdrawals, and charges assessed. There is no guaranteed minimum Separate
Account Value.
3.2 ANNUAL CONTRACT MAINTENANCE CHARGE - The Contract Maintenance Charge is
deducted from the Fixed Account Value and the Separate Account Value by
subtracting values from the Fixed Account Value and/or canceling Accumulation
Units from each applicable Subaccount in the ratio that the value of each
account bears to the total Contract Value. The deduction of the Contract
Maintenance Charge from within each Subaccount or Fixed Account is on a first
in, first out basis. The Annual Contract Maintenance Charge is shown on the
Data Page. The Annual Contract Maintenance Charge will be deducted from the
Contract Value on each Contract Anniversary while this Contract is in force.
If a total withdrawal is made on other than a Contract Anniversary, the Annual
Contract Maintenance Charge will be deducted at the time of withdrawal.
4. SEPARATE ACCOUNT PROVISIONS
4.1 THE SEPARATE ACCOUNT - The Separate Account is a separate investment
account of the Company. It is shown on the Data Page. The Company has
allocated a part of its assets for this and certain other contracts to the
Separate Account. The assets of the Separate Account are the property of the
Company. However, they will not be charged with the liabilities that arise out
of any other business the Company may conduct.
4.2 INVESTMENTS OF THE SEPARATE ACCOUNT - The Separate Account is segmented
into Subaccounts. Purchase Payments applied to the Separate Account are
allocated to a Subaccount of the Separate Account. The assets of the
Subaccount are allocated to the Investment Option(s) shown on the Data Page.
The Company may, from time to time, add additional Investment Options or
Portfolios to those shown on the Data Page. The Owner may be permitted to
transfer Contract Values to the additional Investment Options or Portfolios.
However, the right to make any transfer will be limited by the terms and
conditions imposed by the Company.
The Company may substitute shares of another Investment Option or Portfolio
for shares already under this Contract if:
(1) Any Investment Option is a separate legal entity issuing shares or
other evidence of ownership and should the shares of any such Investment
Options) or any Portfolio(s) within the Investment Option became unavailable
for investment by the Separate Account; or
(2) The Board of Directors deems further investment in these shares
inappropriate.
4.3 VALUATION OF ASSETS - Assets of the Separate Account are valued at their
fair market value in accordance with procedures of the Company.
4.4 ACCUMULATION UNIT - A Purchase Payment when allocated to the Separate
Account is converted into Accumulation Units for the selected Subaccount. The
number of Accumulation Units in a Subaccount credited to this Contract is
determined by dividing the Purchase Payment allocated to that Subaccount by
the Accumulation Unit Value for that Subaccount as of the Valuation Period
during which the Purchase Payment is allocated to the Subaccount. The
Accumulation Unit Value for each Subaccount was arbitrarily set initially at
$10. Subsequent Accumulation Unit Values are determined by subtracting (2)
from (1) and dividing the result by (3) where:
(1) Is the net result of:
(a) The assets of the Subaccount attributable to Accumulation
Units; plus or minus
(b) The cumulative charge or credit for taxes reserved, as stated in
Section 12.9, which resulted from the operation or maintenance of that
Subaccount.
(2) Is the cumulative unpaid charge for the Mortality and Expense Risk
Charge and for the Administrative Charge, which are shown on the Contract Data
Page; and
(3) Is the number of Accumulation Units outstanding at the end of the
Valuation Period.
The Accumulation Unit Value may increase or decrease from Valuation Period to
Valuation Period.
4.5 MORTALITY AND EXPENSE RISK CHARGE - The Company deducts a Mortality and
Expense Risk Charge from the Separate Account which is equal, on an annual
basis, to the amount shown on the Data Page. The Mortality and Expense Risk
Charge compensates the Company for assuming the mortality and expense risks
under this Contract.
4.6 ADMINISTRATIVE CHARGE - The Company deducts an Administrative Charge from
the Separate Account which is equal, on an annual basis, to the amount shown
on the Data Page. The Administrative Charge compensates the Company for the
costs associated with the administration of this Contract and the Separate
Account.
4.7 SEPARATE ACCOUNT VALUE - The Separate Account Value on any Valuation Date
shall mean the sum of the Owner's interests in the Subaccounts of the Separate
Account. The value of the Owner's interest in a Subaccount is determined by
multiplying the number of Accumulation Units attributable to that Subaccount
by the Accumulation Unit Value for that Subaccount. Any withdrawals or
transfers will result in the cancellation of Accumulation Units in a
Subaccount.
5. FIXED ACCOUNT VALUE
The Fixed Account Value at any time is the sum of all Purchase Payments
allocated to the Fixed Account:
(l) Less any amount withdrawn; and
(2) Plus any interest credited.
The Company will credit interest to the Fixed Account Value at rates as the
Company declares. The guaranteed minimum interest rate is equal to an
effective rate of 3% per year. We may credit excess interest while this
Contract is in force and before the proceeds are paid. Excess interest will be
declared in advance.
6. TRANSFER PROVISION
Prior to the Maturity Date, the Owner may transfer all or part of the Owner's
interest in a Subaccount or the Fixed Account without the imposition of any
fee or charge if there have been no more than the number of free transfers
shown on the Data Page for the Contract Year. All transfers are subject to the
following:
(1) If more than the number of free transfers have been made in any
Contract Year, the Company will deduct a Transfer Fee for each subsequent
transfer. The Transfer Fee will be deducted from the amount which is
transferred.
(2) The minimum amount which can be transferred is shown on the Data
Page. The minimum amount which must remain is shown on the Data Page.
(3) Any transfer direction must clearly specify:
(a) The amount which is to be transferred; and
(b) The Fixed Account or Subaccounts which are to be affected.
(4) Transfers will be made as of the Valuation Period next following the
Valuation Period during which a written request for a transfer is received at
the Company.
(5) The Company reserves the right, at any time and without prior notice
to any party, to terminate, suspend, or modify the transfer privilege
described above.
Purchase Payments and any earnings attributable to such Purchase Payments are
transferred from the Fixed Account or Subaccount on a first in, first out
basis. For any Contract Year, transfers of Purchase Payments and any
attributable earnings from the Fixed Account to a Subaccount are limited to
10% of the Purchase Payment and 10% of its attributable earnings. If a
Purchase Payment was received at least eight (8) years prior to the request
for transfer, 100% of that Purchase Payment and its attributable earnings may
be transferred to a Subaccount or Subaccounts. If the Owner elects to use the
transfer privilege, the Company will not be liable for transfers made
according to the Owner's instructions.
7. WITHDRAWAL PROVISIONS
7.1 WITHDRAWAL - Prior to the Maturity Date, the Owner may, upon written
request received by the Company, make a total or partial withdrawal of the
Contract Withdrawal Value. This Contract terminates if a total withdrawal is
made. The Contract Withdrawal Value is:
(1) The Contract Value for the Valuation Period next following the
Valuation Period during which a written request for a withdrawal is received
at the Company; less
(2) Any applicable taxes not previously deducted; less
(3) The Withdrawal Charge, if any; less
(4) The Annual Contract Maintenance Charge, if any.
A withdrawal will result in the cancellation of Accumulation Units for each
applicable Subaccount of the Separate Account or a reduction in the Fixed
Account Value. Unless otherwise instructed, a partial withdrawal will be
applied pro rata among each Subaccount and the Fixed Account based on the
ratio of the value of each Subaccount or Fixed Account to the Contract Value.
For purposes of determining any applicable withdrawal charges or any other
charges under this Contract, the distribution of Purchase Payments from within
a Subaccount or the Fixed Account are on a first in, first out basis with
earnings attributable to such Purchase Payments considered only after the
Purchase Payment is considered.
Each partial withdrawal must be for an amount which is not less than the
amount shown on the Data Page. The remaining Contract Value which must remain
in a Subaccount or in the Fixed Account after a partial withdrawal is shown on
the Data Page.
7.2 WITHDRAWALS WITHOUT CHARGE - For each Contract Year after the first, the
Owner may withdraw without a withdrawal charge an amount equal to 10% of the
total of all Purchase Payments at the beginning of the Contract Year less any
Purchase Payments previously withdrawn. Any withdrawals without a withdrawal
charge not used in a Contract Year may not be used in any subsequent Contract
Year.
8. CONTRACT PROCEEDS
8.1 MATURITY PROCEEDS - On the Maturity Date, the Company will pay the
Maturity Proceeds of the Contract to the Annuitant, if living, subject to the
terms of this Contract. If Payment Plan A, Option 1; Plan B; or Plan C are
elected, the Maturity Proceeds will be the Contract Value less any applicable
taxes not previously deducted. If the Maturity Proceeds are paid in cash or by
any other method not listed above, the Maturity Proceeds equal the Contract
Value less:
(1) Any applicable taxes not previously deducted; less
(2) The Withdrawal Charge, if any; less
(3) The Annual Contract Maintenance Charge, if any.
The election of a Payment Plan must be made in writing at least seven (7) days
prior to the Maturity Date. If no election is made, an automatic option of
monthly income for a minimum of 120 months and as long thereafter as the
Annuitant lives will be applied.
8.2 DEATH PROCEEDS - If death occurs prior to the end of the eighth Contract
Year, the Death Proceeds will be the greater of:
(1) The sum of the Purchase Payments less any Withdrawals including any
applicable Withdrawal Charge and any applicable taxes not previously deducted:
or
(2) The Contract Value less any applicable taxes not previously deducted.
If death occurs after the end of the eighth Contract Year, the Death Proceeds
will be the greatest of:
(1) The sum of the Purchase Payments less any Withdrawals including any
applicable Withdrawal Charge and less any applicable taxes not previously
deducted; or
(2) The Contract Value less any applicable taxes not previously
deducted; or
(3) The Contract Value at the end of the eighth Contract Year less any
Withdrawals including any applicable Withdrawal Charge incurred since the end
of the eighth Contract Year and any applicable taxes not previously deducted.
The Death Proceeds will be determined and paid as of the Valuation Period next
following the Valuation Period during which both due proof of death
satisfactory to the Company and an election for the payment method are
received at the Company.
The Beneficiary can elect to have a single lump sum payment or choose one of
the Payment Plans. If a single sum payment is requested, the amount will be
paid within seven (7) days, unless the Suspension or Deferral of Payments
provision is in effect.
Payment to the Beneficiary, other than in a single sum, may only be elected
during the 60-day period beginning with the date of receipt of due proof of
death on a form acceptable to the Company.
The entire Death Proceeds must be paid within five (5) years of the date of
death unless:
(1) The Beneficiary elects to have the Death Proceeds:
(a) Payable under a Payment Plan over the life of the Beneficiary or
over a period not extending beyond the life expectancy of the Beneficiary; and
(b) Payable beginning within one year of the date of death; or
(2) If the Beneficiary is the Owner's Spouse, the Beneficiary may elect
to become the Owner of the Contract and this Contract will continue in effect.
8.3 DEATH OF ANNUITANT
(1) If the Annuitant dies prior to the Maturity Date, we will pay the
Death Proceeds as provided in Section 8.2 except as provided in number (2) of
this Section.
(2) If the Annuitant dies prior to the Maturity Date and if the Annuitant
was age 76 or greater on the Issue Date of this Contract, we will pay the
Death Proceeds as provided in Section 8.2 except that the Death Proceeds will
equal the Contract Value less any applicable taxes not previously deducted.
(3) If the Annuitant dies after the Maturity Date but before all of the
Proceeds payable under this Contract have been distributed, we pay the
remaining Proceeds to your Beneficiary according to the terms of the
supplementary contract.
8.4 DEATH OF OWNER
(1) If you, as Owner of this Contract, die before the Maturity Date,
Ownership of this Contract will be transferred as follows:
(a) If you are also the Annuitant, Section 8.3 applies; or
(b) If you are not also the Annuitant and if the new Owner is your
spouse, this Contract may be continued; or
(c) If you are not also the Annuitant and it the new Owner is someone
other than your spouse, the Contract Withdrawal value must be distributed
under Section 8.2.
(2) If you, as Owner, die on or after the Maturity Date, but before all
Proceeds payable under this Contract have been distributed, we will continue
payments according to the terms of the Supplementary Contract.
The Owner's spouse is the Owner's surviving spouse at the time of the Owner's
death.
If the Owner is not a natural person, the death of the Annuitant will be
treated as the death of the Owner.
If there are Joint Owners, any references to the death of the Owner shall mean
the first death of an Owner.
9. FIXED PAYMENT PLANS
After the first Contract Year, the Proceeds may be applied under one or more
of the Payment Plans described below. Payment Plans not specified in this
Contract are available only if they are approved both by the Company and the
Owner. You can choose a Payment Plan during the Annuitant's lifetime. This
choice can be changed during the life of the Annuitant prior to the Maturity
Date. If you have not chosen a plan prior to the Annuitant's death, the
automatic option of monthly income for a minimum of 120 months and as long
thereafter as the Payee lives will be applied.
To choose a plan, send a written request to our Annuity Service Center. We
will send you the proper forms to complete. Your request, when recorded at our
Annuity Service Center, will be in effect from the date it was signed, subject
to any payments or actions taken by us before the recording. Any change must
be requested at least seven (7) days prior to the Maturity Date.
If, for any reason, the person named to receive payments (the Payee) is
changed, the change will go into effect when the request is recorded at our
Annuity Service Center, subject to any payments or actions taken by us before
the recording.
A plan is available only if the periodic payment is $100 or more. If the Payee
is other than a natural person (such as a corporation), a plan will be
available only with our consent.
A supplementary contract will be issued in exchange for this Contract when
payment is made under a Payment Plan. The effective date of a Payment Plan
shall be a date upon which we mutually agree.
The minimum interest rate for plans A and B is 3.0% a year, compounded yearly.
The minimum rates for Plan C were based on the 1983a Annuity Table at 3.0%
interest, compounded yearly. We may pay a higher rate at our discretion.
9.1 PLAN A. INTEREST
OPTION 1 - The Contract Value less any applicable taxes not previously
deducted may be left on deposit with us for five (5) years. Fixed payments
will be made monthly, quarterly, semi-annually, or annually. We will not allow
a monthly payment if the Contract Value applied under this option is less than
$100,000. The Proceeds may not be withdrawn until the end of the five (5) year
period.
OPTION 2 - The Contract Withdrawal Value may be left on deposit with us
for a specified period. Interest will be paid annually. All or part of the
Proceeds may be withdrawn at any time.
9.2 PLAN B. FIXED PERIOD - The Contract Value less any applicable taxes not
previously deducted will be paid until the Proceeds, plus interest, are paid
in full. Payments may be paid annually or monthly. The payment period cannot
be more than 30 years nor less than five (5) years. The table below shows the
minimum annual payment for each $1,000 of Proceeds applied. It is based on the
age of the Annuitant or the Beneficiary.
MINIMUM AMOUNT OF EACH INSTALLMENT PER $1,000 FOR PLAN B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years Annual Years Annual Years Annual
Payable Installment Payable Installment Payable Installment
5 $ 218.35 14 $ 88.53 23 $ 60.81
6 184.60 15 83.77 24 59.05
7 160.51 16 79.61 25 57.43
8 142.46 17 75.95 26 55.94
9 128.43 18 72.71 27 54.56
10 117.23 19 69.81 28 53.29
11 108.08 20 67.22 29 52.11
12 100.46 21 64.87 30 51.02
13 94.03 22 62.75
</TABLE>
9.3 PLAN C. LIFE INCOME - The Contract Value less any applicable taxes not
previously deducted will be paid in monthly or annual payments for as long as
the Annuitant or Beneficiary, whichever is appropriate, lives. The Company has
the right to require proof satisfactory to us of the age and sex of such
person and proof of continuing survival of such person. A minimum number of
payments may be guaranteed, if desired.
The table below shows the minimum annual payment for each $ 1,000 of Proceeds
applied. It is based on the age of the Annuitant or Beneficiary.
MINIMUM AMOUNT OF EACH INSTALLMENT PER $1,000 OF PROCEEDS FOR PLAN C
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Male Female
Annual Installment Annual Installment
Guaranteed Period Guaranteed Period
Age of Age of
Payee Life 10 Yrs 20 Yrs Payee Life 10 Yrs 20 Yrs
45 48.35 47.69 46.41 45 44.67 44.26 43.60
46 49.13 48.41 47.01 46 45.28 44.85 44.13
47 49.95 49.17 47.63 47 45.92 45.46 44.68
48 50.80 49.96 48.27 48 46.60 46.11 45.25
49 51.70 50.78 48.93 49 47.31 46.79 45.84
50 52.64 51.64 49.60 50 48.06 47.50 46.45
51 53.63 52.55 50.30 51 48.85 48.25 47.09
52 54.67 53.50 51.01 52 49.69 49.03 47.75
53 55.77 54.49 51.73 53 50.56 49.86 48.43
54 56.93 55.54 52.48 54 51.49 50.73 49.14
55 58.16 56.64 53.23 55 52.48 51.65 49.87
56 59.47 57.80 54.00 56 53.52 52.61 50.63
57 60.85 59.02 54.77 57 54.63 53.63 51.41
58 62.34 60.30 55.55 58 55.81 54.71 52.21
59 63.92 61.65 56.33 59 57.06 55.84 53.03
60 65.61 63.08 57.10 60 58.39 57.04 53.86
61 67.43 64.57 57.87 61 59.81 58.30 54.70
62 69.38 66.14 58.62 62 61.33 59.64 55.56
63 71.47 67.78 59.36 63 62.95 61.04 56.41
64 73.71 69.50 60.07 64 64.68 62.53 57.26
65 76.12 71.28 60.74 65 66.53 64.10 58.11
66 78.69 73.13 61.38 66 68.51 65.75 58.93
67 81.45 75.04 61.99 67 70.64 67.49 59.73
68 84.40 77.01 62.54 68 72.93 69.32 60.50
69 87.57 79.03 63.05 69 75.40 71.24 61.23
70 90.96 81.09 63.52 70 78.08 73.25 61.91
71 94.60 83.19 63.93 71 80.99 75.36 62.54
72 98.50 85.32 64.30 72 84.14 77.54 63.12
73 102.70 87.45 64.63 73 87.57 79.81 63.63
74 107.22 89.58 64.91 74 91.30 82.14 64.08
75 112.08 91.69 65.14 75 95.36 84.52 64.47
76 117.32 93.77 65.34 76 99.77 86.93 64.80
77 122.97 95.79 65.51 77 104.57 89.35 65.08
78 129.06 97.74 65.64 78 109.79 91.75 65.30
79 135.61 99.60 65.75 79 115.49 94.12 65.49
80 142.65 101.36 65.83 80 121.71 96.42 65.64
</TABLE>
Factors for ages not shown will be supplied upon request.
10. SUSPENSION OR DEFERRAL OF PAYMENTS
The Company reserves the right to suspend or postpone payments for a
withdrawal or transfer for any period when:
(1) The New York Stock Exchange is restricted;
(2) Trading on the New York Stock Exchange is restricted;
(3) An emergency exists as a result of which disposal of securities held
in the Separate Account is not reasonably practicable or it is not reasonably
practicable to determine the value of the Separate Account's net assets;
(4) During any other period when the Securities and Exchange Commission,
by order, so permits for the protection of the Owners; or
(5) Our Annuity Service Center is closed for business.
The applicable rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions described in (2) and (3) exist.
11. OWNER, ASSIGNMENT, BENEFICIARY PROVISIONS
11.1 OWNER - As Owner, you can exercise the rights given by this Contract. You
can name a new Owner. Any change in Ownership must be sent to our Annuity
Service Center on a form we accept. The change will go into effect when it is
signed, subject to any payments or actions taken by us before we record it.
11.2 ASSIGNMENT - During the Annuitant's life, you can assign some or all of
your rights under this Contract to someone else.
A signed copy of the assignment must be sent to our Annuity Service Center on
a form we accept. An assignment of your Contract is not binding on us until
the assignment, or a copy, is recorded at our Annuity Service Center, subject
to any payments or actions taken by us before the recording. We are not
responsible for the validity or effect of any assignment, including any tax
consequences. A general assignment is not a change of owner.
Consent of any Irrevocable Beneficiaries is required before assignment of
Proceeds.
11.3 BENEFICIARY - The Owner can name any Beneficiary to be an Irrevocable
Beneficiary. The interest of an Irrevocable Beneficiary cannot be changed
without his or her consent. Otherwise, you can change Beneficiaries as
explained below.
Unless you state otherwise, all rights of a Beneficiary, including an
Irrevocable Beneficiary, will end if he or she dies before the Annuitant dies.
If any Beneficiary dies before the Annuitant, that Beneficiary's interest will
pass to any other Beneficiaries according to their respective interests. If
all Beneficiaries die before the Annuitant, upon the Annuitant's death the
Company will pay the Death Proceeds to the Owner, if living, otherwise to the
Owner's estate or legal successors.
The Owner can change the Beneficiary at any time during the Annuitant's life.
To do so, send a written request to our Annuity Service Center. The request
must be on a form we accept. The change will go into effect when signed,
subject to any payments or actions taken by us before we record the change.
A change cancels all prior Beneficiaries; except, however, a change will not
cancel any Irrevocable Beneficiary without his or her consent. The interest of
the Beneficiary will be subject to:
(1) Any assignment of this Contract, accepted and recorded by the Company
prior to the Annuitant's death: and
(2) Any Payment Plan in effect on the date of the Annuitant's death.
11.4 SIMULTANEOUS DEATH OF BENEFICIARY AND ANNUITANT - Death Proceeds will be
paid as though the Beneficiary died before the Annuitant if:
(1) The Beneficiary dies at the same time as the Annuitant; or
(2) The Beneficiary dies within 24 hours of the Annuitant's death.
12. GENERAL TERMS
12.1 YOUR CONTRACT - This Contract is a legal Contract with us. The Contract
is issued in consideration of any Application you completed and the payment of
the initial Purchase Payment. A copy of any Application is attached to and
made a part of this Contract.
This Contract is the entire Contract between you and us. Only our President or
Vice President can change, modify or waive the provisions of this Contract.
12.2 LIMITS ON CONTESTING THIS CONTRACT - The Company relies on the statements
made in any Application for the Contract. These statements, in the absence of
fraud, are considered representations and not warranties.
The Company will not contest payment of the Proceeds after this Contract has
been in force during the Annuitant's life for two (2) years from the Issue
Date.
12.3 VALID RELEASE FOR PAYMENT - If Proceeds are payable to a person not
legally competent to give a valid release, we may pay the Proceeds in monthly
installments, not exceeding $100, to the person or persons, who, in our
opinion, have assumed custody and principal support of the person. The person
to receive the Proceeds must be judged by us to be entitled to payment. Any
payment made under this clause will be made in good faith. It will satisfy our
responsibility to the extent of any payments made.
12.4 OPTION TO CHANGE MATURITY DATE - The Owner may elect a new Maturity Date
at any time by making a written request to us at our Annuity Service Center at
least seven (7) days prior to the Maturity Date. We may require that the
Contract be submitted for endorsement to show the change. The Maturity Date
may not be in the first Contract Year.
12.5 REPORTS - The Company will send you at least once each year a report
which shows the current Contract Value and any other information which may be
required by law. The Company will also send you an annual report of the
Separate Account. Reports will be sent to the Owner at the post office address
last known to us.
12.6 MISTAKE OF AGE OR SEX - If the age or sex of the Annuitant, or the age or
sex of any designated second person, is misstated in any Application, we will
adjust the Proceeds. The Proceeds of this Contract will be those the Purchase
Payment would have bought at the correct age and sex. Any underpayment made by
the Company will be made up immediately. Any overpayment made by the Company
will be deducted from the succeeding payments as necessary.
12.7 NONPARTICIPATING - This Contract does not share in our divisible surplus.
12.8 PROTECTION OF PROCEEDS - To the extent permitted by law, Proceeds will be
free from legal process and the claim of any creditor if the person is
entitled to them under this Contract. No payment and no amount under this
Contract can be taken or assigned in advance of its payment date unless the
Company receives the Owner's written consent.
12.9 TAXES - Any taxes paid to any government entity relating to this Contract
will be deducted from the Purchase Payment or Contract Value when incurred.
The Company will, in its sole discretion, determine when taxes have resulted
from:
(1) The investment experience of the Separate Account;
(2) Receipt by the Company of the Purchase Payments; or
(3) Commencement of Annuity Payments.
The Company may, at its sole discretion, pay taxes when due and deduct that
amount from the Contract Value at a later date. Payment at an earlier date
does not waive any right the Company may have to deduct amounts at a later
date. The Company will deduct any withholding taxes required by applicable
law.
12.10 MODIFICATION - This Contract may be modified in order to maintain
compliance with applicable state or federal laws.
MATURITY PROCEEDS, WITHDRAWAL VALUES, AND DEATH PROCEEDS PROVIDED BY THIS
CONTRACT, WHEN BASED ON INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT, ARE
VARIABLE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
THE VARIABLE PROVISIONS OF THIS CONTRACT CAN BE FOUND IN SECTIONS 3 and 4.
FLEXIBLE PREMIUM VARIABLE DEFERRED ANNUITY CONTRACT
NONPARTICIPATING
MATURITY PROCEEDS PAYABLE AT MATURITY DATE.
DEATH PROCEEDS PAYABLE IN EVENT OF ANNUITANT'S DEATH PRIOR TO MATURITY DATE.
<PAGE>
<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
P.O. Box 9271, Des Moines, Iowa 50306-9271
WITHDRAWAL PROVISIONS ENDORSEMENT
This Endorsement is a part of the Contract to which it is
attached. The Effective Date of this Endorsement is the
Effective Date shown on the Contract Data Page.
The "WITHDRAWAL PROVISIONS" section of your Contract is replaced
by the following Section:
7. WITHDRAWAL PROVISIONS
7.1 WITHDRAWAL - Prior to the Maturity Date, the Owner may,
upon written request recieved by the Company, make a
total partial withdrawal of the Contract Withdrawal
Value. This Contract terminates if a total withdrawal is
made. The Contract Withdrawal Value is:
(1) The Contract Value for the Valuation Period next
following the Valuation Period during which a
written request for a withdrawal is received at the
Company; less
(2) Any applicable taxes not previously deducted; less
(3) The Withdrawal Charge, if any; less
(4) The Annual Contract Maintenance Charge, if any.
A withdrawal will result in the cancellation of
Accumulation Units for each applicable Subaccount of the
Separate Account or a reduction in the Fixed Account
Value. Unless otherwise instructed, a partial withdrawal
will be applied pro rata among each Subaccount and the
Fixed Account based on the ratio of the value of each
Subaccount or Fixed Account to the Contract Value.
For purposes of determining any applicable withdrawal
charges or any other charges under this Contract, Contract
Value is removed in the follwoing order:
(1) Earnings. Contract Value less unliquidated Purchase
Payments;
(2) Purchase Payments in the Contract for greater than
eight years. These Purchase Payments are liquidated
on a first in, first out basis;
(3) Additiional Free Amount (see WITHDRAWALS WITHOUT
CHARGE on reverse);
(4) Purchase Payments in the Contract for less than eight
years. These Purchase Payments are removed on a first
in, first out basis.
Each partial withdrawal must be for an amount which is not
less than the amount shown on the Data Page. The remaining
Contract Value which must remain in a Subaccount or in the
Fixed Account after a partial withdrawal is shown on the
Data Page.
VA1003
<PAGE>
<PAGE>
7.2 WITHDRAWALS WITHOUT CHARGE - At any time the Owner may
withdraw without a charge an amount equal to the sum of the
following:
(1) Earning. Earning are equal to Contract Value less
unliquidated Purchase Payments;
(2) Purchase Payments in the Contract for greater than
eight years;
(3) Additional Free Amount.
The additional Free Amount is equal to 10% of the Purchase
Payments in the Contract for less than eight years, fixed
at the time of the first withdrawal in the Contract Year,
plus 10% of the Purchase Payments made after the first
withdrawal in the Contract year but before the next
Contract Anniversary, less any withdrawals in the same
Contract Year of Purchase Paymetns less than eight years
old. If there is a loss on the Contract, the amount
without a Withdrawal Charge is the sum of (2) and (3).
All other terms, provisions and conditions of the Contract
remain unchanged.
Signed for us by:
____________________________
President
<PAGE>
<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
P.O. Box 9271, Des Moines, Iowa 50306-9271
DEATH PROCEEDS PROVISIONS ENDORSEMENT
The Endorsement is a part of the Contract to which it is attached.
The Effective Date of this Endorsement is the Effective Date
shown on the Contract Data Page.
In the "CONTRACT PROCEEDS" sectioin of your Contract, the "DEATH
PROCEEDS" sub-section is replaced by the following sub-section:
8.2 DEATH PROCEEDS - For issue ages less than 67, the minimum
guaranteed death beneift equals the greater of:
(1) Purchae Payments (less any Withdrawals and taxes);
(2) Contract Value on the date of settlement (less taxes); or
(3) The Highest Contract Value (less subsequent withdrawals
and taxes) on any contract anniversary beginning with the
8th anniversary and continuing through to the last
anniversary prior to attained age 76.
For issue ages 67 through 75, the minimum guaranteed death
benefit equals the greater of:
(1) Purchase Payments (less withdrawals and taxes);
(2) Contract Value (represents the value of the Owner's
invested assets) on the date of settlement (less taxes); or
(3) The Contract Value (less subsequent withdrawals and taxes)
on 8th anniversary.
For issue ages 76 and above, the minimum guaranteed death benefit
is equal to the Contract Value on the date of settlement.
The Death Proceeds will be determined and paid as of the Valuation
Period next following the Valuation Period during which both due
proof of death satisfactory to the Company and an election for
the payment method are received at the Company.
The Beneficiary can elect to have a single lump sum payment or
choose one of the Payment Plans. If a single sum payment is
requested, the amount will be paid within seven (7) days, unless
the Suspension or Deferral of Payments provision is in effect.
Payment to the Beneficiary, other than in a single sum, may only
be elected during the 60-day period beginning with the date of
receipt of due proof of death on a form acceptable to the Company.
(1) The Benficiary elects to have the Death Proceeds:
(a) Payable under a Payment Plan over the life of the
Beneficiary or over a period not extending beond the
life expectancy of the Beneficiary; and
(b) Payable beginning within one year of the date of death;
or
(2) If the Beneficiary is the Owner's Spouse, the Beneficiary may
elect to become the Owner of the Contract and this Contract will
continue in effect.
All other terms, provisions and conditions of the Contract remain unchanged.
Signed for us by:
____________________________
President
<PAGE> EXHIBIT 5
EQUITABLE LIFE INSURANCE VARIABLE ANNUITY APPLICATION
COMPANY OF IOWA
[Column Format, Left Column]
_____________________________________________________________________________
Annuity plan applied for: ___________________________________________________
Maturity Date (Date on which benefit payments are to begin.) __/__/__
______________________________________________________________________________
ANNUITANT INFORMATION
______________________________________________________________________________
Full Name__________________________________________________________[ ] M [ ] F
Address_______________________________________________________________________
City________________________________________ State____ Zip___________________
Date of Birth __/__/__ Social Security #_____________________________________
______________________________________________________________________________
OWNER INFORMATION (If different from Annuitant)
______________________________________________________________________________
Full Name__________________________________________________________[ ] M [ ] F
Address_______________________________________________________________________
City________________________________________ State____ Zip___________________
Date of Birth __/__/__ Social Security #_____________________________________
______________________________________________________________________________
JOINT OWNER INFORMATION
______________________________________________________________________________
Full Name__________________________________________________________[ ] M [ ] F
Address_______________________________________________________________________
City________________________________________ State____ Zip___________________
Date of Birth __/__/__ Social Security #_____________________________________
______________________________________________________________________________
PRIMARY BENEFICIARY INFORMATION
______________________________________________________________________________
Name % To Receive Relationship Soc. Sec. #
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
CONTINGENT BENEFICIARY INFORMATION
______________________________________________________________________________
Name % To Receive Relationship Soc. Sec. #
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
PURCHASE PAYMENT INFORMATION
______________________________________________________________________________
A. Initial Purchase Payment $________________________________________________
B. Modal Payment Amount $____________________________________________________
[ ] Monthly [ ] Qrtly [ ] Semi-Annl [ ] Annual
______________________________________________________________________________
TYPE OF PLAN
______________________________________________________________________________
A. [ ] Non-Qualified [ ] IRA [ ] SEP-IRA [ ] 403(b)
[ ] OTHER ____________________
B. [ ] 1035 Exchange [ ] Rollover [ ] Transfer
I acknowledge that I understand the withdrawal restrictions under Internal
Revenue Code Section 403(b)(11) on contributions and earnings and have
received a prospectus explaining the restrictions. I understand the other
investment alternatives available under the employer's 403(b) arrangement to
which I may elect to transfer my contract value.
C. Is the policy applied for to replace or change any existing life insurance
or annuity contract? [ ] Yes [ ] No
______________________________________________________________________________
PURCHASE PAYMENT ALLOCATION
______________________________________________________________________________
Enter desired Subaccount code and indicate percent of Purchase Payment
allocation. Use whole percentages only. If more room is needed, use back
of application.
Subaccount Percent(%) Subaccount Percent(%)
_____________ _____________ _____________ _____________
_____________ _____________ _____________ _____________
_____________ _____________ _____________ _____________
_____________ _____________ Fixed Account _____________
Total Percent 100%
Under certain circumstances, as described in the accompanying Prospectus, the
initial purchase payment will be allocated to the Money Market Portfolio
until the expiration of the right to examine period. Thereafter, the purchase
payments will be allocated as directed in this section.
______________________________________________________________________________
[RIGHT COLUMN]
______________________________________________________________________________
TELEPHONE TRANSFER AUTHORIZATION
______________________________________________________________________________
THE OWNER AND REGISTERED REPRESENTATIVE WILL AUTOMATICALLY BE ABLE TO TRANSFER
ACCOUNT VALUES AND CHANGE THE PURCHASE PAYMENT ALLOCATION BY TELEPHONE UNLESS
INDICATED BELOW.
[ ] Do not accept telephone transfers on this annuity.
[ ] Accept telephone transfers from the owner only.
The following individuals may also make telephone on this annuity.
Name Social Security Number
___________________________________ ______________________________________
___________________________________ ______________________________________
Equitabke Life of Iowa reserves teh right to restrict the frequency of
transfers and to otherwise modify conditions or terminate this telephone
privilege at any time without prior notice. The owner agrees to indeminfy
Equitable Life of Iowa, the fund involved, and their agents, and hold them
harmless for any such transfer made by telephone relying on this authorization.
______________________________________________________________________________
SIGNATURES
______________________________________________________________________________
Tt is understood and agreed that:
(1) The statements made shall form the exclusive basis of any Annuity Contract
or Certificate issued hereon;
(2) Only the President or Secretary can make, modify, discharge, or waive any
of the Company's rights;
(3) The Annuity Contracts or Certificates are not effective until the initial
purchase payment is received by the Company;
(4) CHECKS MUST BE MADE PAYABLE TO THE COMPANY. CHECKS ARE NOT TO BE MADE
PAYABLE TO THE AGENT. THE CANCELLED CHECK IS YOUR RECEIPT;
(5) THERE IS A SUBSTANTIAL PENALTY FOR EARLY SURRENDER.
I agree that the above information contained in the application is true and
correct to the best of my knowledge and belief and is made as the basis for my
application. I UNDERSTAND THAT ANNUITY PAYMENTS AND TOTAL WITHDRAWAL VALUES
(IF ANY) PROVIDED BY THIS CONTRACT WHEN BASED ON THE INVESTMENT EXPERIENCE OF
A SEPARATE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO A FIXED DOLLAR
AMOUNT. HOWEVER, FIXED ACCOUNT VALUES ARE GUARANTEED AS TO A FIXED DOLLAR
AMOUNT. RECEIPT OF A CURRENT VARIABLE ANNUITY PROSPECTUS IS HEREBY
ACKNOWLEDGED. Under penalty of perjury, I certify that my social security
number listed above is correct and that I am not currently subject to backup
withholding. Application made at:
City_________________________________ State_____________ Date _____/_____/_____
Owner's Signature _____________________________________________________________
Telephone (____)__________________________
______________________________________________________________________________
REGISTERED REPRESENTATIVE REPORT
______________________________________________________________________________
To the best of your knowledge, does the policy applied for involve replacement
or modification of any existing Life Insurance or Annuity contract? [ ]Yes [ ]No
If Yes, complet the followingand submit required replacement forms.
[ ] Life Insurance [ ] Annuity [ ] Cost Basis $_____________
FOR COMMISSION SPLITS, ATTACH A SEPARATE SHEET AND INCLUDE ALL OF THE
INFORMATION BELOW INCLUDING SIGNATURE.
THE
Agent Name____________________________________ Agent No. ____________________
Address_______________________________________________________________________
City___________________________________ State___________________ Zip__________
Telephone (____)__________________________
Broker/Dealer ________________________________________________________________
Agent's Signature ____________________________________________________________
Date Signed __________________________________________________________________
EQUITABLE LIFE OF IOWA o P.O. BOX 9271, DES MOINES, IA 50306-9271
<PAGE>
<PAGE>
EXHIBIT (8)(iii)
PARTICIPATION AGREEMENT
Among
SMITH BARNEY CONCERT SERIES INC.,
TRAVELERS INVESTMENT ADVISER, INC.
and
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
THIS AGREEMENT, made as of the 3rd day of February, 1997,
by and among the EQUITABLE LIFE INSURANCE COMPANY OF IOWA
(hereinafter the "Company"), on its own behalf and on behalf of each
segregated asset account of the Company set forth on Schedule A
hereto as may be amended from time to time (each such account
hereinafter referred to as the "Account"), the SMITH BARNEY CONCERT
SERIES INC., a Maryland corporation (hereinafter the "Fund"), and
TRAVELERS INVESTMENT ADVISER, INC. (hereinafter the "Adviser"), a
Delaware corporation.
WHEREAS, the Fund engages in business as an open-end management
investment company and is available to act as the investment vehicle
for separate accounts established for variable annuity contracts and,
subject to an order obtained from the Securities and Exchange
Commission (the "SEC"), expects to be available to act as the
investment vehicle for certain qualified pension and retirement plans
("Qualified Plans") and for separate accounts established for
variable life insurance policies (such variable life insurance
policies and variable annuity contracts are herein, collectively, the
"Variable Insurance Products") to be offered by insurance companies
which have entered into participation agreements with the Fund and
the Adviser (hereinafter "Participating Insurance Companies"); and
WHEREAS, the beneficial interests in the Fund are divided into
several series of shares, each representing the interest in a
particular managed portfolio of securities and other assets; and
WHEREAS, the Fund desires to make shares of such managed
portfolios as are listed on Schedule B attached hereto, as such
Schedule B may be amended from time to time hereafter by mutual
written agreement of all the parties hereto, available to the
Company for purchase (each such listed portfolio, a "Portfolio"); and
WHEREAS, the Fund has obtained an order from the SEC, granting
Participating Insurance Companies and variable annuity and variable
insurance separate accounts exemptions from the provisions of
Sections 9(a), 13(a), 15(a), and 15(b) of the Investment Company Act
of 1940, as amended, (hereinafter the "l940 Act") and Rules
6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent necessary to
permit shares of the Fund to be sold to and held by variable annuity
and variable life insurance separate accounts of both affiliated and
unaffiliated life insurance companies (hereinafter the "Mixed and
Shared Funding Exemptive Order"); and
WHEREAS, the Fund is registered as an open-end management
investment company under the l940 Act and its shares are registered
under the Securities Act of 1933, as amended (hereinafter the "1933
Act"); and
WHEREAS, the Adviser is duly registered as an Investment Adviser
under the Federal Investment Advisers Act of 1940 and any applicable
state securities law; and
WHEREAS, the Company has registered or will register certain
variable life and variable annuity contracts under the 1933 Act; and
<PAGE>
<PAGE>
WHEREAS, each Account is a duly organized, validly existing
segregated asset account, established by resolution of the Board of
Directors of the Company, on the date shown for such Account on
Schedule A hereto, to set aside and invest assets attributable to one
or more variable life and annuity contracts; and
WHEREAS, the Company, to the extent required under federal law,
has registered or will register each Account as a unit investment
trust under the l940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws
and regulations, the Company intends to purchase shares in the
Portfolios on behalf of each Account to fund certain of the aforesaid
variable life and variable annuity contracts,
NOW, THEREFORE, in consideration of their mutual promises the
Company, the Fund and the Adviser agree as follows:
ARTICLE I. Sale of Fund Shares
-------------------
1.1. The Fund agrees to sell to the Company those shares of the
Fund which each Account orders, executing such orders on a daily
basis at the net asset value next computed after receipt by the Fund
or its designee of the order for the shares of the Fund. For
purposes of this Section l.l, the Company shall be the designee of
the Fund for receipt of such orders from each Account and receipt by
such designee shall constitute receipt by the Fund; provided that the
Fund receives notice of such order by 10:00 a.m. Eastern time on the
next following Business Day. "Business Day" shall mean any day on
which the New York Stock Exchange is open for trading and on which
the Fund calculates its net asset value pursuant to the rules of the
Securities and Exchange Commission.
1.2. The Fund agrees to make its shares available indefinitely
for purchase at the applicable net asset value per share by the
Company and its Accounts on those days on which the Fund calculates
its net asset value pursuant to rules of the SEC and the Fund shall
use reasonable efforts to calculate such net asset value on each day
which the New York Stock Exchange is open for trading.
Notwithstanding the foregoing, the Board of Directors of the Fund
(hereinafter the "Board") may refuse to sell shares of any Portfolio
to any person, or suspend or terminate the offering of shares of any
Portfolio if such action is required by law or by regulatory
authorities having jurisdiction or is, in the sole discretion of the
Board acting in good faith and in light of their fiduciary duties
under federal and any applicable state laws, necessary in the best
interest of the shareholders of such Portfolio.
1.3. The Fund and the Adviser agree that shares of the Fund
will be sold only to Participating Insurance Companies and their
separate accounts and, in accordance with the terms of the Mixed and
Shared Funding Exemptive Order, certain Qualified Plans. No shares
of any Portfolio will be sold to the general public.
1.4. The Fund will not sell Fund shares to any insurance
company or separate account unless an agreement containing provisions
substantially the same as Articles I and VII, Section 2.5 of Article
II and Sections 3.4 and 3.5 of Article III of this Agreement is in
effect to govern such sales.
1.5. The Fund agrees to redeem for cash, on the Company's
request, any full or fractional shares of the Fund held by the
Company, executing such requests on a daily basis at the net asset
value next computed after receipt by the Fund or its designee of the
request for redemption. For purposes of Sections 2.10 and 2.11, upon
the payment by the Fund to the Company of the proceeds of such
redemptions, such
2
<PAGE>
<PAGE>
proceeds shall cease to be the responsibility of
the Fund and shall become the responsibility of the Company. For
purposes of this Section 1.5, the Company shall be the designee of
the Fund for receipt of requests for redemption from each Account and
receipt by such designee shall constitute receipt by the Fund;
provided that the Fund receives notice of such request for redemption
by 10:00 a.m. Eastern time on the next following Business Day.
1.6. The Company agrees to purchase and redeem the shares of
each Portfolio offered by the then current prospectus of the Fund in
accordance with the provisions of such prospectus. The Company
agrees that all net amounts available under the variable life and
variable annuity contracts with the form number(s) which are listed
on Schedule C attached hereto and incorporated herein by this
reference, as such Schedule C may be amended from time to time
hereafter by mutual written agreement of all the parties hereto and
which such contracts have been sold pursuant to an Annuity Selling
Agreement dated February 10, 1995, by and between the Company, PFS
Investments Inc. and Primerica Financial Services, Inc. (the
"Contracts"), shall be invested in the Portfolios, in such other
funds advised by the Adviser as may be mutually agreed to in writing
by the parties hereto, or in the Company's general account, provided
that such amounts may also be invested in an investment company other
than the Fund if (a) such other investment company, or series
thereof, has investment objectives or policies that are substantially
different from the investment objectives and policies of the
Portfolios of the Fund; or (b) the Company gives the Fund and the
Adviser 60 days written notice of its intention to make such other
investment company available as a funding vehicle for the Contracts;
or (c) such other investment company was available as a funding
vehicle for the Contracts prior to the date of this Agreement and the
Company so informs the Fund and Adviser prior to their signing this
Agreement; or (d) the Fund or Adviser consents to the use of such
other investment company.
1.7. The Company shall pay for Fund shares on the next Business
Day after an order to purchase Fund shares is made in accordance with
the provisions of Section 1.1 hereof. Payment shall be in federal
funds transmitted by wire. For purposes of Section 2.9 and 2.10,
upon receipt by the Fund of the federal funds so wired, such funds
shall cease to be the responsibility of the Company and shall become
the responsibility of the Fund.
1.8. Issuance and transfer of the Fund's shares will be by book
entry only. Stock certificates will not be issued to the Company or
any Account. Shares ordered from the Fund will be recorded in an
appropriate title for each Account or the appropriate subaccount of
each Account.
1.9. The Fund shall furnish notice (by wire or telephone,
followed by written confirmation) as soon as is reasonably
practicable to the Company of any income, dividends or capital gain
distributions payable on the Fund's shares. The Company hereby
elects to receive all such income dividends and capital gain
distributions as are payable on the Portfolio shares in additional
shares of that Portfolio. The Company reserves the right to revoke
this election and to receive all such income dividends and capital
gain distributions in cash. The Fund shall notify the Company of the
number of shares so issued as payment of such dividends and
distributions.
1.10. The Fund shall make the net asset value per share for
each Portfolio available to the Company on a daily basis as soon as
reasonably practical after the net asset value per share is
calculated (normally 6:30 p.m. Eastern time) and shall use its best
efforts to make such net asset value per share available by 7:00 p.m.
Eastern time. If the Fund provides the Company with the incorrect
share net asset value information, the Company on behalf of the
Account shall be entitled to a prompt adjustment to the number of
shares purchased or redeemed to reflect the correct share net asset
value. Upon a final
3
<PAGE>
<PAGE>
determination that there has been an error in
the calculation of net asset value, dividend or capital gain, the
Fund shall report such error to the Company.
ARTICLE II. Representations and Warranties
------------------------------
2.1. The Company represents and warrants that the Contracts are
or will be registered under the 1933 Act, or qualify for an exemption
therefrom; that the Contracts will be issued and sold in compliance
in all material respects with all applicable Federal and State laws
and that the sale of the Contracts shall comply in all material
respects with state insurance suitability requirements. The Company
further represents and warrants that it is an insurance company duly
organized and in good standing under applicable law and that it has
legally and validly established each Account prior to any issuance or
sale thereof as a segregated asset account under Iowa Code Section
508A.1 and has registered or, prior to any issuance or sale of the
Contracts, will register each Account as a unit investment trust in
accordance with the provisions of the 1940 Act, unless exempt
therefrom, to serve as a segregated investment account for the
Contracts.
2.2. The Fund represents and warrants that Fund shares sold
pursuant to this Agreement shall be registered under the 1933 Act,
shall be duly authorized for issuance and sold in compliance with the
laws of the State of Maryland and all applicable federal and state
securities laws and that the Fund is and shall remain registered
under the 1940 Act. The Fund shall amend the Registration Statement
for its shares under the 1933 Act and the 1940 Act from time to time
as required in order to effect the continuous offering of its shares.
The Fund shall register and qualify the shares for sale where
necessary as determined by the Fund or the Adviser in accordance with
the laws of the various states.
2.3. The Fund represents that it is currently qualified as a
Regulated Investment Company under Subchapter M of the Internal
Revenue Code of 1986, as amended, (the "Code") and that it will make
every effort to maintain such qualification (under Subchapter M or
any successor or similar provision) and that it will notify the
Company immediately upon having a reasonable basis for believing that
it has ceased to so qualify or that it might not so qualify in the
future.
2.4. The Company represents that the Contracts are currently
treated as endowment, annuity or life insurance contracts, under
applicable provisions of the Code and that it will make every effort
to maintain such treatment and that it will notify the Fund and the
Adviser immediately upon having a reasonable basis for believing that
the Contracts have ceased to be so treated or that they might not be
so treated in the future.
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2.5. The Fund currently does not intend to make any payments to
finance distribution expenses pursuant to Rule 12b-1 under the 1940
Act or otherwise, although it may make such payments in the future.
To the extent that it decides to finance distribution expenses
pursuant to Rule 12b-1, the Fund undertakes to have a board of
directors, a majority of whom are not interested persons of the Fund,
formulate and approve any plan under Rule 12b-1 to finance
distribution expenses.
2.6. The Fund makes no representation as to whether any aspect
of its operations (including, but not limited to, fees and expenses
and investment policies) complies with the insurance laws or
regulations of the various states except that the Fund and the
Adviser represent that their respective operations are and shall at
all times remain in material compliance with the laws of the State of
Maryland to the extent required to perform this Agreement.
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2.7. The Fund represents that it is lawfully organized and
validly existing under the laws of the State of Maryland and that it
does and will comply in all material respects with the 1940 Act.
2.8. The Adviser represents and warrants that the Adviser is
and shall remain duly registered in all material respects under all
applicable federal and state securities laws and that the Adviser
shall perform its obligations for the Fund in compliance in all
material respects with the laws of the State of Maryland and any
applicable state and federal securities laws.
2.9. The Fund and Adviser represent and warrant that all of
their directors, officers, employees, investment advisers, and other
individuals/entities dealing with the money and/or securities of the
Fund are and shall continue to be at all times covered by a blanket
fidelity bond or similar coverage for the benefit of the Fund in an
amount not less than the minimal coverage as required currently by
Rule 17g-1 of the 1940 Act or related provisions as may be
promulgated from time to time. The aforesaid Bond shall include
coverage for larceny and embezzlement and shall be issued by a
reputable bonding company.
2.10. The Company represents and warrants that all if any of
its directors, officers, employees, investment advisers, and other
individuals/entities deal with the money and/or securities of the
Fund they will at all such times be covered by a blanket fidelity
bond or similar coverage for the benefit of the Fund, in an amount
not less than the minimal coverage as required by Rule 17g-1 of the
1940 Act or related provisions as may be promulgated from time to
time. The aforesaid Bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
ARTICLE III. Prospectuses and Proxy Statements; Voting
-----------------------------------------
3.1. The Adviser and the Fund shall provide to the Company such
documentation (including a final copy of the Fund's most current
prospectus as set in type at the Fund's expense) and other assistance
as is reasonably necessary in order for the Company once each year
(or more frequently if the prospectus for the Fund is amended) to
have the prospectus for the Contracts and the Portfolios' prospectus
printed in a combined document with the prospectuses of other funds
invested in by the Account (such printing to be at the Company's
expense except as provided in Section 5.3 hereof).
3.2. The Fund's prospectus shall state that the Statement of
Additional Information ("SAI") for the Fund is available from the
Adviser (or in the Fund's discretion, the Prospectus shall state that
such SAI is available from the Fund), and the Adviser (or the Fund),
at its expense, shall print and provide one copy of such SAI free of
charge to the Company and to any owner of a Contract or prospective
owner who requests such Statement. The Company may make additional
copies of the SAI at its expense.
3.3. The Fund, at its expense, shall provide the Company with
copies of its proxy material, reports to shareholders, and other
communications to shareholders in such quantity as the Company shall
reasonably require for distributing to Contract owners; provided,
however, that the Company shall bear the expenses for the costs of
printing and distributing any proxy material, reports to shareholders
and other communications to shareholders that are prepared at the
request of the Company.
3.4. If and to the extent required by law the Company shall:
(i) solicit voting instructions from Contract owners;
(ii) vote the Fund shares in accordance with instructions
received from Contract owners; and
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(iii) vote Fund shares for which no instructions have been
received in the same proportion as Fund shares of such
Portfolio for which instructions have been received;
so long as and to the extent that the SEC continues to interpret the
1940 Act to require pass-through voting privileges for owners of
Variable Insurance Products. The Company reserves the right to vote
Fund shares held in any segregated asset account in its own right, to
the extent permitted by law. Participating Insurance Companies shall
be responsible for assuring that each of their separate accounts
participating in the Fund calculates voting privileges in a manner
consistent with this Section.
3.5. The Fund will comply with all provisions of the 1940 Act
requiring voting by shareholders.
ARTICLE IV. Sales Material and Information
------------------------------
4.1. The Company shall furnish, or shall cause to be furnished,
to the Fund or its designee, each piece of sales literature or other
promotional material in which the Fund, the Adviser, or the Fund's
underwriter is named, at least ten Business Days prior to its use.
No such material shall be used if the Fund or its designee object to
such use within ten Business Days after receipt of such material.
4.2. The Company shall not give any information or make any
representations or statements on behalf of the Fund or concerning the
Fund in connection with the sale of the Contracts other than the
information or representations contained in the registration
statement or prospectus for the Fund shares, as such registration
statement and prospectus may be amended or supplemented from time to
time, or in reports or proxy statements for the Fund, or in sales
literature or other promotional material approved by the Fund or its
designee or by the Adviser, except with the permission of the Fund or
the Adviser or the designee of either.
4.3. The Fund, and the Adviser, or its designee shall furnish,
or shall cause to be furnished, to the Company or its designee, each
piece of sales literature or other promotional material in which the
Company and/or its separate account(s), is named at least ten
Business Days prior to its use. No such material shall be used if
the Company or its designee object to such use within ten Business
Days after receipt of such material.
4.4. The Fund and the Adviser shall not give any information or
make any representations on behalf of the Company or concerning the
Company, each Account, or the Contracts other than the information or
representations contained in a registration statement or prospectus
for the Contracts, as such registration statement and prospectus may
be amended or supplemented from time to time, or in published reports
for each Account which are in the public domain or approved by the
Company for distribution to Contract owners, or in sales literature
or other promotional material approved by the Company or its
designee, except with the permission of the Company.
4.5. The Fund will provide to the Company at least one complete
copy of all registration statements, prospectuses, Statements of
Additional Information, reports, proxy statements, sales literature
and other promotional materials, applications for exemptions,
requests for no-action letters, and all amendments to any of the
above, that relate to the Fund or its shares, as soon as is
reasonably practicable after the filing of such document with the SEC
or other regulatory authorities.
4.6. The Company will provide to the Fund at least one complete
copy of all registration statements, prospectuses, Statements of
Additional Information, annual and semi-annual reports,
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solicitations
for voting instructions, applications for exemptions, requests for no
action letters, and all amendments to any of the above, that relate
to the Contracts or each Account, as soon as is reasonably
practicable after the filing of such document with the SEC or other
regulatory authorities.
4.7. For purposes of this Article IV, the phrase "sales
literature or other promotional material" includes, but is not
limited to, advertisements (such as materials published, or designed
for use in, in a newspaper, magazine, or other periodical, radio,
television, telephone or tape recording, videotape display, signs or
billboards, motion pictures, or other public media), sales literature
(i.e., any written communication distributed or made generally
available to customers or the public, including brochures, circulars,
research reports, market letters, form letters, seminar texts,
reprints or excerpts of any other advertisement, sales literature, or
published article), educational or training materials or other
communications distributed or made generally available to some or all
agents or employees, and registration statements, prospectuses,
Statements of Additional Information, shareholder reports, and proxy
materials.
ARTICLE V. Fees and Expenses
-----------------
5.1. The Fund and Adviser shall pay no fee or other
compensation to the Company under this Agreement, except that if the
Fund or any Portfolio adopts and implements a plan pursuant to Rule
12b-1 to finance distribution expenses, then the underwriter may make
payments to the Company for the Contracts if and in amounts agreed to
by the Adviser in writing and such payments will be made out of
existing fees otherwise payable to the Adviser, past profits of the
Adviser or other resources available to the Adviser, or by the Fund,
to the extent permitted. Currently, no such payments are
contemplated.
5.2. All expenses incident to performance by the Fund under
this Agreement shall be paid by the Fund. Except as provided in
sections 3.1, 3.2, 3.3 and 5.3 hereof, the Fund shall bear the
expenses for the cost of registration and qualification of the Fund's
shares, preparation and filing of the Fund's prospectus and
registration statement, proxy materials and reports, setting the
prospectus in type, setting in type and printing the proxy materials
and reports to shareholders (including, if so elected, the costs of
printing a prospectus that constitutes an annual report), the
preparation of all statements and notices required by any federal or
state law, all taxes on the issuance or transfer of the Fund's
shares.
5.3. The printing and distributing of the prospectus for the
Portfolios (or that portion of a prospectus relating to the
Portfolios should the Company determine to print a combined
prospectus) to existing owners of Contracts shall be at the expense
of the Fund.
ARTICLE VI. Diversification
---------------
6.1. Subject to the following sentence, the Fund will at all
times comply with Section 817(h) of the Code and Treasury Regulation
1.817-5, relating to the diversification requirements for variable
annuity, endowment, or life insurance contracts and any amendments or
other modifications to such Section or Regulations. In the event of
any changes to such Section or Regulations relating to the treatment
of variable contracts, the Company will advise the Fund of such
changes.
ARTICLE VII. Potential Conflicts
-------------------
7.1 The parties to this Agreement acknowledge that the Fund has
filed an application with the SEC to request an order (the "Exemptive
Order") granting relief from various provisions of the 1940 Act and
the rules thereunder to the extent necessary to permit Fund shares to
be sold to and held by variable
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annuity and variable life insurance
separate accounts of both affiliated and unaffiliated Participating
Insurance Companies and Qualified Plans. It is anticipated that the
Exemptive Order, when and if issued, shall require the Fund and each
Participating Insurance Company to comply with conditions and
undertakings substantially as provided in this Article VII. If the
Exemptive Order imposes conditions on the Company materially
different from those provided for in this Article VII, the conditions
and undertakings imposed by the Exemptive Order shall govern this
Agreement. The Fund will not enter into a participation agreement
with any other Participating Insurance Company unless it imposes the
same conditions and undertakings as are imposed on the Company
hereby.
7.2 The Company will report any potential or existing conflicts
promptly to the Board, and in particular whenever contract owner
voting instructions are disregarded, and recognizes that it shall be
responsible for assisting the Board in carrying out its
responsibilities in connection with the Exemptive Order. The Company
agrees to carry out such responsibilities with a view to the
interests of contract owners.
7.3. If it is determined by a majority of the Board, or a
majority of its disinterested directors that a material
irreconcilable conflict exists, the Company and other Participating
Insurance Companies shall, at their expense and to the extent
reasonably practicable (as determined by a majority of the
disinterested trustees), take whatever steps are necessary to remedy
or eliminate the irreconcilable material conflict, including but not
limited to: (1) withdrawing the assets allocable to some or all of
the separate accounts from the Fund or any Portfolio and reinvesting
such assets in a different investment medium, including (but not
limited to) another Portfolio of the Fund, or submitting the question
whether such segregation should be implemented, to a vote of all
affected Contract owners and, as appropriate, segregating the assets
of any appropriate group (i.e., annuity contract owners, life
insurance contract owners, or variable contract owners of one or more
Participating Insurance Companies) that votes in favor of such
segregation, or offering to the affected contract owners the option
of making such a change; and (2) establishing a new registered
management investment company or managed separate account.
7.4 If a material irreconcilable conflict arises as a result of
a decision by the Company to disregard contract owner voting
instructions and said decision represents a minority position or
would preclude a majority vote by all contract owners having an
interest in the Fund, the Company may be required, at the Board's
election, to withdraw the Account's investment in the Fund.
7.5 For purposes of this Article VII, a majority of the
disinterested directors shall determine whether or not any proposed
action adequately remedies any irreconcilable material conflict, but
in no event shall the Fund be required to bear the expense of
establishing a new funding medium for any Contract. The Company
shall not be required by this Article VII to establish a new funding
medium for any Contract if an offer to do so has been declined by
vote of a majority of the contract owners materially adversely
affected by the irreconcilable material conflict. In the event that
the Board determines that any proposed action does not adequately
remedy any irreconcilable material conflict, then the Company will
withdraw the Account's investment in the Fund and terminate this
Agreement within six (6) months after the Board informs the Company
in writing of the foregoing determination, provided, however, that
such withdrawal and termination shall be limited to the extent
required by any such material irreconcilable conflict as determined
by a majority of the disinterested members of the Board.
7.6. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are
amended, or Rule 6e-3 is adopted, to provide exemptive relief from
any provision of the Act or the rules promulgated thereunder with
respect to mixed or shared funding (as defined in the Mixed and
Shared Funding Exemptive Order) on terms and conditions materially
different from those contained in the Shared Funding Exemptive Order,
then (a) the
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Fund and/or the Participating Insurance Companies, as
appropriate, shall take such steps as may be necessary to comply with
Rules 6e-2 and 6e-3(T) as amended, and Rule 6e-3, as adopted, to the
extent such rules are applicable; and (b) Sections 3.4, 3.5, 7.1,
7.2, 7.3, 7.4 and 7.5 of this Agreement shall continue in effect only
to the extent that terms and conditions substantially identical to
such Sections are contained in such Rule(s) as so amended or adopted.
ARTICLE VIII. Indemnification
---------------
8.1. Indemnification By The Company
------------------------------
8.1(a). The Company agrees to indemnify and hold harmless
the Fund and each of its directors and officers and each person,
if any, who controls the Fund within the meaning of Section 15
of the 1933 Act (collectively, the "Indemnified Parties" for
purposes of this Section 8.1) against any and all losses,
claims, damages, liabilities (including amounts paid in
settlement with the written consent of the Company) or
litigation (including legal and other expenses), to which the
Indemnified Parties may become subject under any statute,
regulation, at common law or otherwise, insofar as such losses,
claims, damages, liabilities or expenses (or actions in respect
thereof) or settlements are related to the sale or acquisition
of the Fund's shares or the Contracts and:
(i) arise out of or are based upon any untrue
statements or alleged untrue statements of any material
fact contained in the Registration Statement or prospectus
for the Contract or contained in the Contracts or sales
literature for the Contracts (or any amendment or
supplement to any of the foregoing), or arise out of or are
based upon the omission or the alleged omission to state
therein a material fact required to be stated therein or
necessary to make the statements therein not misleading,
provided that this agreement to indemnify shall not apply
as to any Indemnified Party if such statement or omission
or such alleged statement or omission was made in reliance
upon and in conformity with information furnished to the
Company by or on behalf of the Fund for use in the
Registration Statement or prospectus for the Contracts or
in the Contracts or sales literature (or any amendment or
supplement) or otherwise for use in connection with the
sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or
representations (other than statements or representations
contained in the Registration Statement, prospectus or
sales literature of the Fund not supplied by the Company,
or persons under its control) or wrongful conduct of the
Company or persons under its control, with respect to the
sale or distribution of the Contracts or Fund shares; or
(iii) arise out of any untrue statement or
alleged untrue statement of a material fact contained in a
Registration Statement, prospectus, or sales literature of
the Fund or any amendment thereof or supplement thereto or
the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to
make the statements therein not misleading if such a
statement or omission was made in reliance upon information
furnished to the Fund by or on behalf of the Company; or
(iv) arise as a result of any failure by the
Company to provide the services and furnish the materials
under the terms of this Agreement; or
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(v) arise out of or result from any material
breach of any representation and/or warranty made by
the Company in this Agreement or arise out of or result from
any other material breach of this Agreement by the Company.
8.1(b). The Company shall not be liable under this
indemnification provision with respect to any losses, claims,
damages, liabilities or litigation incurred or assessed against
an Indemnified Party as such may arise from such Indemnified
Party's willful misfeasance, bad faith, or gross negligence in
the performance of such Indemnified Party's duties or by reason
of such Indemnified Party's reckless disregard of obligations or
duties under this Agreement or to the Fund, whichever is
applicable.
8.1(c). The Company shall not be liable under this
indemnification provision with respect to any claim made against
an Indemnified Party unless such Indemnified Party shall have
notified the Company in writing within a reasonable time after
the summons or other first legal process giving information of
the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have
received notice of such service on any designated agent), but
failure to notify the Company of any such claim shall not
relieve the Company from any liability which it may have to the
Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision. In case any
such action is brought against the Indemnified Parties, the
Company shall be entitled to participate, at its own expense, in
the defense of such action. The Company also shall be entitled
to assume the defense thereof, with counsel satisfactory to the
party named in the action. After notice from the Company to
such party of the Company's election to assume the defense
thereof, the Indemnified Party shall bear the fees and expenses
of any additional counsel retained by it, and the Company will
not be liable to such party under this Agreement for any legal
or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than
reasonable costs of investigation.
8.1(d). The indemnification provided by this Section 8.1
shall survive the termination of this Agreement and shall be in
addition to any other liability the Company may have.
8.2. Indemnification by the Adviser
------------------------------
8.2(a). The Adviser agrees to indemnify and hold harmless
the Company and each of its directors and officers and each
person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act (collectively, the "Indemnified
Parties" for purposes of this Section 8.2) against any and all
losses, claims, damages, liabilities (including amounts paid in
settlement with the written consent of the Adviser) or
litigation (including legal and other expenses) to which the
Indemnified Parties may become subject under any statute, at
common law or otherwise, insofar as such losses, claims,
damages, liabilities or expenses (or actions in respect thereof)
or settlements:
(i) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact
contained in the Registration Statement or prospectus or
sales literature of the Fund (or any amendment or
supplement to any of the foregoing), or arise out of or are
based upon the omission or the alleged omission to state
therein a material fact required to be stated therein or
necessary to make the statements therein not misleading,
provided that this agreement to indemnify shall not apply
as to any Indemnified Party if such statement or omission
or such alleged statement or omission was made in reliance
upon and in conformity with information furnished to the
Adviser or Fund by or on behalf
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of the Company for use in
the Registration Statement or prospectus for the Fund or in
sales literature (or any amendment or supplement) or
otherwise for use in connection with the sale of the
Contracts or Fund shares; or
(ii) arise out of or as a result of statements or
representations (other than statements or representations
contained in the Registration Statement, prospectus or
sales literature for the Contracts not supplied by the
Adviser or persons under its control) or wrongful conduct
of the Fund or Adviser or persons under their control; or
(iii) arise out of any untrue statement or alleged
untrue statement of a material fact contained in a
Registration Statement, prospectus or sales literature
covering the Contracts, or any amendment thereof or
supplement thereto, or the omission or alleged omission to
state therein a material fact required to be stated therein
or necessary to make the statement or statements therein
not misleading, if such statement or omission was made in
reliance upon information furnished to the Company by or on
behalf of the Fund; or
(iv) arise as a result of (a) any failure by the Fund
to provide the services and furnish the material under the
terms of this Agreement; or (b) a failure to comply with
Article VI of this Agreement with respect to
diversification requirements; or (c) failure to qualify as
a regulated investment company under Subchapter M of the
Code; or
(v) arise out of or result from any material breach
of any representation and/or warranty made by the Adviser
or the Fund in this Agreement or arise out of or result
from any other material breach of this Agreement by the
Adviser or the Fund.
8.2(b). The Adviser shall not be liable under this
indemnification provision with respect to any losses, claims,
damages, liabilities or litigation to which an Indemnified Party
would otherwise be subject by reason of such Indemnified Party's
willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of
such Indemnified Party's reckless disregard of obligations and
duties under this Agreement or to the Company or Account,
whichever, is applicable.
8.2(c). The Adviser shall not be liable under this
indemnification provision with respect to any claim made against
an Indemnified Party unless such Indemnified Party shall have
notified the Adviser in writing within a reasonable time after
the summons or other first legal process giving information of
the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have
received notice of such service on any designated agent), but
failure to notify the Adviser of any such claim shall not
relieve the Adviser from any liability which it may have to the
Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision. In case any
such action is brought against the Indemnified Parties, the
Adviser will be entitled to participate, at its own expense, in
the defense thereof. The Adviser also shall be entitled to
assume the defense thereof with counsel satisfactory to the
party named in the action. After notice from the Adviser to
such party of the Adviser's election to assume the defense
thereof, the Indemnified Party shall bear the fees and expenses
of any additional counsel retained by it, and the Adviser will
not be liable to such party under this Agreement for any legal
or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than
reasonable costs of investigation.
8.2(d). The indemnification provided by this Section 8.2
shall survive the termination of this Agreement and shall be in
addition to any other liability the Fund or Adviser may have.
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ARTICLE IX. Applicable Law
--------------
9.1. This Agreement shall be construed and the provisions
hereof interpreted under and in accordance with the laws of the State
of New York.
9.2. This Agreement shall be subject to the provisions of the
1933, 1934 and 1940 acts, and the rules and regulations and rulings
thereunder, including such exemptions from those statutes, rules and
regulations as the SEC may grant (including, but not limited to, the
Shared Funding Exemptive Order) and the terms hereof shall be
interpreted and construed in accordance therewith.
ARTICLE X. Term and Termination
--------------------
10.1. The Agreement is effective as of the date hereof and will
remain in effect until terminated in accordance with the provisions
herein.
10.2. This Agreement shall terminate:
(a) at the option of any party upon 180 days advance
written notice to the other parties unless otherwise agreed in a
separate written agreement among the parties; or
(b) at the option of the Company if shares of the
Portfolios delineated in Schedule 2 are not reasonably available to
meet the requirements of the Contracts as determined by the Company;
provided, however, that such termination shall only apply to the
Portfolio(s) not reasonably available. Prompt notice of the election
to terminate for such cause shall be furnished by the Company; or
(c) at the option of the Fund upon institution of formal
proceedings against the Company by the NASD, the SEC, the insurance
commission of any state or any other regulatory body regarding the
Company's duties under this Agreement or related to the sale of the
Contracts, the administration of the Contracts, the operation of the
Account, or the purchase of the Fund shares, the expected or
anticipated ruling, judgment or outcome of which would, in the Fund's
reasonable judgment, materially impair the Company's ability to
perform its obligation and duties hereunder; or
(d) at the option of the Company upon institution of
formal proceedings against the Fund by the NASD, the SEC, or any
state securities or insurance department or any other regulatory
body, the expected or anticipated ruling, judgment or outcome of
which would, in the Company's reasonable judgment, materially impair
the Fund's ability to perform its obligation and duties hereunder; or
(e) at the option of the Company or the Fund upon receipt
of any necessary regulatory approvals and/or the vote of the contract
owners having an interest in the Account (or any subaccount) to
substitute the shares of another investment company for the
corresponding Portfolio shares of the Fund in accordance with the
terms of the Contracts for which those Portfolio shares had been
selected to serve as the underlying investment media. The Company
will give 30 days' prior written notice to the Fund of the date of
any proposed vote or other action taken to replace the Fund's shares;
or
(f) at the option of the Company or the Fund upon a
determination by a majority of the Fund Board, or a majority of the
disinterested Fund Board members, that an irreconcilable material
conflict exists among the interests of (i) all contractowners of
variable insurance products of all separate accounts or (ii) the
interests of the Participating Insurance Companies investing in the
Fund as delineated in Article VII of this Agreement; or
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(g) at the option of the Company if the Fund ceases to
qualify as a Regulated Investment Company under Subchapter M of the
Code, or under any successor or similar provision, or if the Company
reasonably believes that the Fund may fail to so qualify; or
(h) at the option of the Company if the Fund fails to
meet the diversification requirements specified in Article VI hereof;
or
(i) at the option of any party to this Agreement, upon
another party's material breach of any provision of this Agreement;
or
(j) at the option of the Company, if the Company
determines in its sole judgment exercised in good faith, that either
the Fund or the Adviser has suffered a material adverse change in its
business, operations or financial condition since the date of this
Agreement or is the subject of material adverse publicity and such
material adverse change or material adverse publicity is likely to
have a material adverse impact upon the business and operations of
the Company; or
(k) at the option of the Fund or Adviser, if the Fund or
Adviser respectively, shall determine in its sole judgment exercised
in good faith, that the Company has suffered a material adverse
change in its business, operations or financial condition since the
date of this Agreement or is the subject of material adverse
publicity and such material adverse change or material adverse
publicity is likely to have a material adverse impact upon the
business and operations of the Fund or Adviser; or
(l) at the option of the Fund in the event any of the
Contracts are not issued or sold in accordance with applicable
federal and/or state law. Termination shall be effective immediately
upon such occurrence without notice, or
(m) automatically upon its assignment by any party without
the other parties' prior written consent; or
(n) in the event the Fund's shares are not registered,
issued or sold in accordance with applicable state or federal law, or
such law precludes the use of such shares for the underlying
investment medium of variable contracts issued or to be issued by the
Company. Termination shall be effective immediately upon such
occurrence without notice.
10.3. Notice Requirement
------------------
(a) In the event that any termination of this Agreement
is based upon the provisions of Article VII such prior written notice
shall be given in advance of the effective date of termination as
required by such provisions.
(b) In the event that any termination of this Agreement
is based upon the provisions of Sections 10.2(b)- (d) or 10.2(g) -
(i), prior written notice of the election to terminate this Agreement
for cause shall be furnished by the party terminating the Agreement
to the non-terminating parties, with said termination to be effective
upon receipt of such notice by the non-terminating parties.
(c) In the event that any termination of this Agreement
is based upon the provisions of Sections 10.2(j) or 10.2(k), prior
written notice of the election to terminate this Agreement for cause
shall
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be furnished by the party terminating this Agreement to the non-
terminating parties. Such prior written notice shall be given by the
party terminating this Agreement to the non-terminating parties at
least 30 days before the effective date of termination.
10.4. It is understood and agreed that the right to terminate
this Agreement pursuant to Section 10.2(a) may be exercised for any
reason or for no reason.
10.5. Effect of Termination
---------------------
(a) Notwithstanding any termination of this Agreement
pursuant to Section 10.2 of this Agreement, the Fund may, at its
option, or in the event of termination of this Agreement by the Fund
or the Adviser pursuant to Section 10.2(a) of this Agreement, the
Company may require the Fund and the Adviser to, continue to make
available additional shares of the Fund for so long after the
termination of this Agreement as the Fund or the Company, if the
Company is so requiring, desires pursuant to the terms and conditions
of this Agreement as provided in paragraph (b) below for all
Contracts in effect on the effective date of termination of this
Agreement (hereinafter referred to as "Existing Contracts").
Specifically, without limitation, if the Fund so elects to make
available additional shares of the Fund or if the Company is so
requiring, the owners of the Existing Contracts shall be permitted to
reallocate investments in the Fund, redeem investments in the Fund
and/or invest in the Fund upon the making of additional purchase
payments under the Existing Contracts. The parties agree that this
Section 10.5 shall not apply to any terminations under Article VII
and the effect of such Article VII terminations shall be governed by
Article VII of this Agreement.
(b) In the event of a termination of this Agreement
pursuant to Section 10.2 of this Agreement, the Fund shall promptly
notify the Company whether the Fund will continue to make available
shares of the Fund after such termination, except that, with respect
to a termination by the Fund or the Adviser pursuant to
Section 10.2(a) of this Agreement, the Company shall promptly notify
the Fund whether it wishes the Fund to continue to make available
additional shares of the Fund. If shares of the Fund continue to be
made available after such termination, the provisions of this
Agreement shall remain in effect except for Section 10.2(a) and
thereafter the Fund or the Company may terminate the Agreement, as so
continued pursuant to this Section 10.5 upon written notice to the
other party, such notice to be for a period that is reasonable under
the circumstances.
(c) In determining whether to make available additional
Fund shares, the Fund shall act in good faith, giving due
consideration to the interest of the existing shareholders, including
holders of the existing Contracts.
10.6. Except (a) as necessary to implement contractowner
initiated or approved transactions, or (b) as required by state
insurance laws or regulations (a "Legally Required Redemption"), the
Company shall not redeem Fund shares attributable to the Contracts
(as opposed to Fund shares attributable to the Company's assets held
in the Account), and the Company shall not prevent contractowners
from allocating payments to a Portfolio that was otherwise available
under the Contracts, until 90 days after the Company shall have
notified the Fund or Adviser of its intention to do so. Upon
request, the Company will promptly furnish to the Fund and Adviser
the opinion of counsel for the Company (which counsel shall be
reasonably satisfactory to the Fund and the Adviser) to the effect
that a particular redemption is a Legally Required Redemption.
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ARTICLE XI. Notices
-------
Any notice shall be sufficiently given when sent by registered
or certified mail to the other party at the address of such party set
forth below or at such other address as such party may from time to
time specify in writing to the other party.
If to the Fund:
Smith Barney Concert Series Inc.
388 Greenwich Street, 22nd Floor
New York, NY 10013
Attn: Christina T. Sydor, Secretary
If to the Company:
Equitable Life Insurance Company of Iowa
604 Locust Street
Des Moines, Iowa 50309
Attn: John A. Merriman, Secretary
If to the Adviser:
Travelers Investment Adviser, Inc.
388 Greenwich Street, 22nd Floor
New York, NY 10013
Attn: Christina T. Sydor, General Counsel
ARTICLE XII. Miscellaneous
-------------
12.1. All persons dealing with the Fund must look solely to
the property of the Fund for the enforcement of any claims against
the Fund as neither the Board, officers, agents or shareholders
assume any personal liability for obligations entered into on behalf
of the Fund.
12.2. Subject to the requirement of legal process and
regulatory authority, each party hereto shall treat as if
confidential the names and addresses of the owners of the Contracts
and all information reasonably identified as confidential in writing
by any other party hereto and, except as permitted by this Agreement
shall not disclose, disseminate or utilize such names and addresses
and other confidential information until such time as it may come
into the public domain without the express written consent of the
affected party.
12.3. The captions in this Agreement are included for
convenience of reference only and in no way define or delineate any
of the provisions hereof or otherwise affect their construction or
effect.
12.4. This Agreement may be executed simultaneously in two or
more counterparts, each of which taken together shall constitute one
and the same instrument.
12.5. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the
remainder of the Agreement shall not be affected thereby.
12.6. Each party hereto shall cooperate with each other party
and all appropriate governmental authorities (including without
limitation the SEC, the NASD and state insurance regulators) and
shall
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permit such authorities reasonable access to its books and
records in connection with any investigation or inquiry relating to
this Agreement or the transactions contemplated hereby.
12.7. The rights, remedies and obligations contained in this
Agreement are cumulative and are in addition to any and all rights,
remedies and obligations, at law or in equity, which the parties
hereto are entitled to under state and federal laws.
IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed in its name and on its behalf by its duly
authorized representative and its seal to be hereunder affixed hereto
as of the date specified below.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
By its authorized officer
By: /s/Thomas L. May
-----------------------
Title: Senior Vice President
--------------------
Date:
---------------------
SMITH BARNEY CONCERT SERIES INC.
By its authorized officer
By: /s/Heath B. McLendon
-----------------------
Title: Chairman of the Board
--------------------
Date:
---------------------
TRAVELERS INVESTMENT ADVISER, INC.
By its authorized officer
By: /s/Lewis E. Daidone
-----------------------
Title: Senior Vice President
--------------------
Date:
---------------------
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Schedule A
Asset Accounts of the Company Date Estab.
Equitable Life Insurance Company 1/24/94
of Iowa Separate Account A
17
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Schedule B
Select High Growth Portfolio
Select Growth Portfolio
Select Balanced Portfolio
Select Conservative Portfolio
Select Income Portfolio
18
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Schedule C
Accounts Form No.
Equitable Life Insurance Company of Iowa VA100-1/94
Individual Flexible Purchase Payment
Deferred Variable Fixed Annuity Contract
19
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EXHIBIT (8)(iv)
PARTICIPATION AGREEMENT
AMONG
EQUITABLE LIFE INSURANCE COMPANY OF IOWA,
PIMCO VARIABLE INSURANCE TRUST,
AND
PIMCO FUNDS DISTRIBUTORS LLC
THIS AGREEMENT, dated as of the 1st day of May, 1998 by
and among Equitable Life Insurance Company of Iowa,
(the "Company"), an Iowa life insurance company, on its own
behalf and on behalf of each segregated asset account of the
Company set forth on Schedule A hereto as may be amended from time
to time (each account hereinafter referred to as the "Account"),
PIMCO Variable Insurance Trust (the "Fund"), a Delaware business
trust, and PIMCO Funds Distributors LLC (the "Underwriter"), a
Delaware limited liability company.
WHEREAS, the Fund engages in business as an open-end
management investment company and is available to act as the
investment vehicle for separate accounts established for variable
life insurance and variable annuity contracts (the "Variable
Insurance Products") to be offered by insurance companies which
have entered into participation agreements with the Fund and
Underwriter ("Participating Insurance Companies");
WHEREAS, the shares of beneficial interest of the Fund are
divided into several series of shares, each designated a
"Portfolio" and representing the interest in a particular managed
portfolio of securities and other assets;
WHEREAS, the Fund has obtained an order from the Securities
and Exchange Commission (the "SEC") granting Participating
Insurance Companies and variable annuity and variable life
insurance separate accounts exemptions from the provisions of
sections 9(a), 13(a), 15(a), and 15(b) of the Investment Company
Act of 1940, as amended, (the "1940 Act") and Rules 6e-2(b)(15)
and 6e-3(T)(b)(15) thereunder, if and to the extent necessary to
permit shares of the Fund to be sold to and held by variable
annuity and variable life insurance separate accounts of both
affiliated and unaffiliated life insurance companies (the "Mixed
and Shared Funding Exemptive Order");
WHEREAS, the Fund is registered as an open-end management
investment company under the 1940 Act and shares of the
Portfolios are registered under the Securities Act of 1933, as
amended (the "1933 Act");
WHEREAS, Pacific Investment Management Company (the
"Adviser"), which serves as investment adviser to the Fund, is
duly registered as an investment adviser under the federal
Investment Advisers Act of 1940, as amended;
WHEREAS, the Company has issued or will issue certain
variable life insurance and/or variable annuity contracts
supported wholly or partially by the Account (the "Contracts"),
and said Contracts are listed in Schedule A hereto, as it may be
amended from time to time by mutual written agreement;
WHEREAS, the Account is duly established and maintained as a
segregated asset account, duly established by the Company, on the
date shown for such Account on Schedule A hereto, to set aside
and invest assets attributable to the aforesaid Contracts;
WHEREAS, the Underwriter, which serves as distributor to the
Fund, is registered as a broker dealer with the SEC under the
Securities Exchange Act of 1934, as amended (the "1934 Act"), and
is a member in good standing of the National Association of
Securities Dealers, Inc. (the "NASD"); and
WHEREAS, to the extent permitted by applicable insurance
laws and regulations, the Company intends to purchase shares in
the Portfolios listed in Schedule A hereto, as it may be amended
from time to time by mutual written agreement (the "Designated
Portfolios") on behalf of the Account to fund the aforesaid
Contracts, and the Underwriter is authorized to sell such shares
to the Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises,
the Company, the Fund and the Underwriter agree as follows:
ARTICLE I. Sale of Fund Shares
1. This text is hidden, do not remove.
1.1. The Fund has granted to the Underwriter exclusive authority
to distribute the Fund's shares, and has agreed to instruct, and
has so instructed, the Underwriter to make available to the
Company for purchase on behalf of the Account Fund shares of
those Designated Portfolios selected by the Underwriter.
Pursuant to such authority and instructions, and subject to
Article X hereof, the Underwriter agrees to make available to the
Company for purchase on behalf of the Account, shares of those
Designated Portfolios listed on Schedule A to this Agreement,
such purchases to be effected at net asset value in accordance
with Section 1.3 of this Agreement. Notwithstanding the
foregoing, (i) Fund series (other than those listed on Schedule
A) in existence now or that may be established in the future will
be made available to the Company only as the Underwriter may so
provide, and (ii) the Board of Trustees of the Fund (the "Board")
may suspend or terminate the offering of Fund shares of any
Designated Portfolio or class thereof, if such action is required
by law or by regulatory authorities having jurisdiction or if, in
the sole discretion of the Board acting in good faith and in
light of its fiduciary duties under federal and any applicable
state laws, suspension or termination is necessary in the best
interests of the shareholders of such Designated Portfolio.
1.2. The Fund shall redeem, at the Company's request, any full or
fractional Designated Portfolio shares held by the Company on
behalf of the Account, such redemptions to be effected at net
asset value in accordance with Section 1.3 of this Agreement.
Notwithstanding the foregoing, (i) the Company shall not redeem
Fund shares attributable to Contract owners except in the
circumstances permitted in Section 10.3 of this Agreement, and
(ii) the Fund may delay redemption of Fund shares of any
Designated Portfolio to the extent permitted by the 1940 Act, and
any rules, regulations or orders thereunder.
1.3. Purchase and Redemption Procedures
(a) The Fund hereby appoints the Company as an agent of the Fund
for the limited purpose of receiving purchase and redemption
requests on behalf of the Account (but not with respect to any
Fund shares that may be held in the general account of the
Company) for shares of those Designated Portfolios made available
hereunder, based on allocations of amounts to the Account or
subaccounts thereof under the Contracts and other transactions
relating to the Contracts or the Account. Receipt of any such
request (or relevant transactional information therefor) on any
day the New York Stock Exchange is open for trading and on which
the Fund calculates it net asset value pursuant to the rules of
the SEC (a "Business Day") by the Company as such limited agent
of the Fund prior to the time that the Fund ordinarily calculates
its net asset value as described from time to time in the Fund
Prospectus (which as of the date of execution of this Agreement
is 4:00 p.m. Eastern Time) shall constitute receipt by the Fund
on that same Business Day, provided that the Fund receives notice
of such request by 9:30 a.m. Eastern Time on the next following
Business Day.
(b) The Company shall pay for shares of each Designated
Portfolio on the same day that it notifies the Fund of a purchase
request for such shares. Payment for Designated Portfolio shares
shall be made in federal funds transmitted to the Fund by wire to
be received by the Fund by 4:00 p.m. Eastern Time on the day the
Fund is notified of the purchase request for Designated Portfolio
shares (unless the Fund determines and so advises the Company
that sufficient proceeds are available from redemption of shares
of other Designated Portfolios effected pursuant to redemption
requests tendered by the Company on behalf of the Account). If
federal funds are not received on time, such funds will be
invested, and Designated Portfolio shares purchased thereby will
be issued, as soon as practicable and the Company shall promptly,
upon the Fund's request, reimburse the Fund for any charges,
costs, fees, interest or other expenses incurred by the Fund in
connection with any advances to, or borrowing or overdrafts by,
the Fund, or any similar expenses incurred by the Fund, as a
result of portfolio transactions effected by the Fund based upon
such purchase request. Upon receipt of federal funds so wired,
such funds shall cease to be the responsibility of the Company
and shall become the responsibility of the Fund.
(c) Payment for Designated Portfolio shares redeemed by the
Account or the Company shall be made in federal funds transmitted
by wire to the Company or any other designated person on the next
Business Day after the Fund is properly notified of the
redemption order of such shares (unless redemption proceeds are
to be applied to the purchase of shares of other Designated
Portfolio in accordance with Section 1.3(b) of this Agreement),
except that the Fund reserves the right to redeem Designated
Portfolio shares in assets other than cash and to delay payment
of redemption proceeds to the extent permitted under Section
22(e) of the 1940 Act and any Rules thereunder, and in accordance
with the procedures and policies of the Fund as described in the
then current prospectus. The Fund shall not bear any
responsibility whatsoever for the proper disbursement or
crediting of redemption proceeds by the Company, the Company
alone shall be responsible for such action.
(d) Any purchase or redemption request for Designated Portfolio
shares held or to be held in the Company's general account shall
be effected at the net asset value per share next determined
after the Fund's receipt of such request, provided that, in the
case of a purchase request, payment for Fund shares so requested
is received by the Fund in federal funds prior to close of
business for determination of such value, as defined from time to
time in the Fund Prospectus.
1.4. The Fund shall use its best efforts to make the net asset
value per share for each Designated Portfolio available to the
Company by 6:30 p.m. Eastern Time each Business Day, and in any
event, as soon as reasonably practicable after the net asset
value per share for such Designated Portfolio is calculated, and
shall calculate such net asset value in accordance with the
Fund's Prospectus. Neither the Fund, any Designated Portfolio,
the Underwriter, nor any of their affiliates shall be liable for
any information provided to the Company pursuant to this
Agreement which information is based on incorrect information
supplied by the Company or any other Participating Insurance
Company to the Fund or the Underwriter.
1.5. The Fund shall furnish notice (by wire or telephone followed
by written confirmation) to the Company as soon as reasonably
practicable of any income dividends or capital gain distributions
payable on any Designated Portfolio shares. The Company, on its
behalf and on behalf of the Account, hereby elects to receive all
such dividends and distributions as are payable on any Designated
Portfolio shares in the form of additional shares of that
Designated Portfolio. The Company reserves the right, on its
behalf and on behalf of the Account, to revoke this election and
to receive all such dividends and capital gain distributions in
cash. The Fund shall notify the Company promptly of the number
of Designated Portfolio shares so issued as payment of such
dividends and distributions.
1.6. Issuance and transfer of Fund shares shall be by book entry
only. Stock certificates will not be issued to the Company or
the Account. Purchase and redemption orders for Fund shares
shall be recorded in an appropriate ledger for the Account or the
appropriate subaccount of the Account.
1.7. (a) The parties hereto acknowledge that the arrangement
contemplated by this Agreement is not exclusive; the Fund's
shares may be sold to other insurance companies (subject to
Section 1.8 hereof) and the cash value of the Contracts may be
invested in other investment companies, provided, however, that
until this Agreement is terminated pursuant to Article X, the
Company shall promote the Designated Portfolios on the same basis
as other funding vehicles available under the Contracts. Funding
vehicles other than those listed on Schedule A to this Agreement
may be available for the investment of the cash value of the
Contracts, provided, however, (i) any such vehicle or series
thereof, has investment objectives or policies that are
substantially different from the investment objectives and
policies of the Designated Portfolios available hereunder; (ii)
the Company gives the Fund and the Underwriter 45 days written
notice of its intention to make such other investment vehicle
available as a funding vehicle for the Contracts; and (iii)
unless such other investment company was available as a Funding
vehicle for the Contracts prior to the date of this Agreement and
the Company has so informed the Fund and the Underwriter prior to
their signing this Agreement, the Fund or Underwriter consents in
writing to the use of such other vehicle, such consent not to be
unreasonably withheld.
(a) This text is hidden, do not remove.
(b) The Company shall not, without prior notice to the
Underwriter (unless otherwise required by applicable law), take
any action to operate the Account as a management investment
company under the 1940 Act.
(c) The Company shall not, without prior notice to the
Underwriter (unless otherwise required by applicable law), induce
Contract owners to change or modify the Fund or change the Fund's
distributor or investment adviser.
(d) The Company shall not, without prior notice
to the Fund, induce Contract owners to vote on any matter
submitted for consideration by the shareholders of the Fund in a
manner other than as recommended by the Board of Trustees of the
Fund.
1.8. The Underwriter and the Fund shall sell Fund shares only to
Participating Insurance Companies and their separate accounts and
to persons or plans ("Qualified Persons") that communicate to the
Underwriter and the Fund that they qualify to purchase shares of
the Fund under Section 817(h) of the Internal Revenue Code of
1986, as amended (the "Code") and the regulations thereunder
without impairing the ability of the Account to consider the
portfolio investments of the Fund as constituting investments of
the Account for the purpose of satisfying the diversification
requirements of Section 817(h). The Underwriter and the Fund
shall not sell Fund shares to any insurance company or separate
account unless an agreement complying with Article VI of this
Agreement is in effect to govern such sales, to the extent
required. The Company hereby represents and warrants that it and
the Account are Qualified Persons. The Fund reserves the right
to cease offering shares of any Designated Portfolio in the
discretion of the Fund.
ARTICLE II. Representations and Warranties
2. This text is hidden, do not remove.
2.1. The Company represents and warrants that the Contracts (a)
are, or prior to issuance will be, registered under the 1933 Act,
or (b) are not registered because they are properly exempt from
registration under the 1933 Act or will be offered exclusively in
transactions that are properly exempt from registration under the
1933 Act. The Company further represents and warrants that the
Contracts will be issued and sold in compliance in all material
respects with all applicable federal securities and state
securities and insurance laws and that the sale of the Contracts
shall comply in all material respects with state insurance
suitability requirements. The Company further represents and
warrants that it is an insurance company duly organized and in
good standing under applicable law, that it has legally and
validly established the Account prior to any issuance or sale
thereof as a segregated asset account under [insert state]
insurance laws, and that it (a) has registered or, prior to any
issuance or sale of the Contracts, will register the Account as a
unit investment trust in accordance with the provisions of the
1940 Act to serve as a segregated investment account for the
Contracts, or alternatively (b) has not registered the Account in
proper reliance upon an exclusion from registration under the
1940 Act. The Company shall register and qualify the Contracts
or interests therein as securities in accordance with the laws of
the various states only if and to the extent deemed advisable by
the Company.
2.2. The Fund represents and warrants that Fund shares sold
pursuant to this Agreement shall be registered under the 1933
Act, duly authorized for issuance and sold in compliance with
applicable state and federal securities laws and that the Fund is
and shall remain registered under the 1940 Act. The Fund shall
amend the registration statement for its shares under the 1933
Act and the 1940 Act from time to time as required in order to
effect the continuous offering of its shares. The Fund shall
register and qualify the shares for sale in accordance with the
laws of the various states only if and to the extent deemed
advisable by the Fund or the Underwriter.
2.3. The Fund may make payments to finance distribution expenses
pursuant to Rule 12b-1 under the 1940 Act. Prior to financing
distribution expenses pursuant to Rule 12b-1, the Fund will have
the Board, a majority of whom are not interested persons of the
Fund, formulate and approve a plan pursuant to Rule 12b-1 under
the 1940 Act to finance distribution expenses.
2.4. The Fund makes no representations as to whether any aspect
of its operations, including, but not limited to, investment
policies, fees and expenses, complies with the insurance and
other applicable laws of the various states.
2.5. The Fund represents that it is lawfully organized and
validly existing under the laws of the State of Delaware and that
it does and will comply in all material respects with the 1940
Act.
2.6. The Underwriter represents and warrants that it is a member
in good standing of the NASD and is registered as a broker-dealer
with the SEC. The Underwriter further represents that it will
sell and distribute the Fund shares in accordance with any
applicable state and federal securities laws.
2.7. The Fund and the Underwriter represent and warrant that all
of their trustees/directors, officers, employees, investment
advisers, and other individuals or entities dealing with the
money and/or securities of the Fund are and shall continue to be
at all times covered by a blanket fidelity bond or similar
coverage for the benefit of the Fund in an amount not less than
the minimum coverage as required currently by Rule 17g-1 of the
1940 Act or related provisions as may be promulgated from time to
time. The aforesaid bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
2.8. The Company represents and warrants that all of its
directors, officers, employees, and other individuals/entities
employed or controlled by the Company dealing with the money
and/or securities of the Account are covered by a blanket
fidelity bond or similar coverage for the benefit of the Account,
in an amount not less than $5 million. The aforesaid bond
includes coverage for larceny and embezzlement and is issued by a
reputable bonding company. The Company agrees to hold for the
benefit of the Fund and to pay to the Fund any amounts lost from
larceny, embezzlement or other events covered by the aforesaid
bond to the extent such amounts properly belong to the Fund
pursuant to the terms of this Agreement. The Company agrees to
make all reasonable efforts to see that this bond or another bond
containing these provisions is always in effect, and agrees to
notify the Fund and the Underwriter in the event that such
coverage no longer applies.
ARTICLE III. Prospectuses and Proxy Statements; Voting
3. This text is hidden, do not remove.
3.1. The Underwriter shall provide the Company with as many
copies of the Fund's current prospectus (describing only the
Designated Portfolios listed on Schedule A) or, to the extent
permitted, the Fund's profiles as the Company may reasonably
request. The Company shall bear the expense of printing copies
of the current prospectus and profiles for the Contracts that
will be distributed to existing Contract owners, and the Company
shall bear the expense of printing copies of the Fund's
prospectus and profiles that are used in connection with offering
the Contracts issued by the Company. If requested by the Company
in lieu thereof, the Fund shall provide such documentation
(including a final copy of the new prospectus on diskette at the
Fund's expense) and other assistance as is reasonably necessary
in order for the Company once each year (or more frequently if
the prospectus for the Fund is amended) to have the prospectus
for the Contracts and the Fund's prospectus or profile printed
together in one document (such printing to be at the Company's
expense).
3.2. The Fund's prospectus shall state that the current Statement
of Additional Information ("SAI") for the Fund is available, and
the Underwriter (or the Fund), at its expense, shall provide a
reasonable number of copies of such SAI free of charge to the
Company for itself and for any owner of a Contract who requests
such SAI.
3.3. The Fund shall provide the Company with information
regarding the Fund's expenses, which information may include a
table of fees and related narrative disclosure. for use in any
prospectus or other descriptive document relating to a Contract.
The Company agrees that it will use such information in the form
provided. The Company shall provide prior written notice of any
proposed modification of such information, which notice will
describe in detail the manner in which the Company proposes to
modify the information, and agrees that it may not modify such
information in any way without the prior consent of the Fund.
3.4. The Fund, at its expense, shall provide the Company with
copies of its proxy material, reports to shareholders, and other
communications to shareholders in such quantity as the Company
shall reasonably require for distributing to Contract owners.
3.5. The Company shall:
(i) solicit voting instructions from Contract owners;
(ii) vote the Fund shares in accordance with instructions
received from Contract owners; and
(iii) vote Fund shares for which no instructions have been
received in the same proportion as Fund shares of such portfolio
for which instructions have been received,
so long as and to the extent that the SEC continues to interpret
the 1940 Act to require pass-through voting privileges for
variable contract owners or to the extent otherwise required by
law. The Company will vote Fund shares held in any segregated
asset account in the same proportion as Fund shares of such
portfolio for which voting instructions have been received from
Contract owners, to the extent permitted by law.
3.6. Participating Insurance Companies shall be responsible for
assuring that each of their separate accounts participating in a
Designated Portfolio calculates voting privileges as required by
the Shared Funding Exemptive Order and consistent with any
reasonable standards that the Fund may adopt and provide in
writing.
ARTICLE IV. Sales Material and Information
4. This text is hidden, do not remove.
4.1. The Company shall furnish, or shall cause to be furnished,
to the Fund or its designee, each piece of sales literature or
other promotional material that the Company develops and in which
the Fund (or a Designated Portfolio thereof) or the Adviser or
the Underwriter is named. No such material shall be used until
approved by the Fund or its designee, and the Fund will use its
best efforts for it or its designee to review such sales
literature or promotional material within ten Business Days after
receipt of such material. The Fund or its designee reserves the
right to reasonably object to the continued use of any such sales
literature or other promotional material in which the Fund (or a
Designated Portfolio thereof) or the Adviser or the Underwriter
is named, and no such material shall be used if the Fund or its
designee so object.
4.2. The Company shall not give any information or make any
representations or statements on behalf of the Fund or concerning
the Fund or the Adviser or the Underwriter in connection with the
sale of the Contracts other than the information or
representations contained in the registration statement or
prospectus or SAI for the Fund shares, as such registration
statement and prospectus or SAI may be amended or supplemented
from time to time, or in reports or proxy statements for the
Fund, or in sales literature or other promotional material
approved by the Fund or its designee or by the Underwriter,
except with the permission of the Fund or the Underwriter or the
designee of either.
4.3. The Fund and the Underwriter, or their designee, shall
furnish, or cause to be furnished, to the Company, each piece of
sales literature or other promotional material that it develops
and in which the Company, and/or its Account, is named. No such
material shall be used until approved by the Company, and the
Company will use its best efforts to review such sales literature
or promotional material within ten Business Days after receipt of
such material. The Company reserves the right to reasonably
object to the continued use of any such sales literature or other
promotional material in which the Company and/or its Account is
named, and no such material shall be used if the Company so
objects.
4.4. The Fund and the Underwriter shall not give any information
or make any representations on behalf of the Company or
concerning the Company, the Account, or the Contracts other than
the information or representations contained in a registration
statement, prospectus (which shall include an offering
memorandum, if any, if the Contracts issued by the Company or
interests therein are not registered under the 1933 Act), or SAI
for the Contracts, as such registration statement, prospectus, or
SAI may be amended or supplemented from time to time, or in
published reports for the Account which are in the public domain
or approved by the Company for distribution to Contract owners,
or in sales literature or other promotional material approved by
the Company or its designee, except with the permission of the
Company.
4.5. The Fund will provide to the Company at least one complete
copy of all registration statements, prospectuses, SAIs, reports,
proxy statements, sales literature and other promotional
materials, applications for exemptions, requests for no-action
letters, and all amendments to any of the above, that relate to
the Fund or its shares, promptly after the filing of such
document(s) with the SEC or other regulatory authorities.
4.6. The Company will provide to the Fund at least one complete
copy of all registration statements, prospectuses (which shall
include an offering memorandum, if any, if the Contracts issued
by the Company or interests therein are not registered under the
1933 Act), SAIs, reports, solicitations for voting instructions,
sales literature and other promotional materials, applications
for exemptions, requests for no-action letters, and all
amendments to any of the above, that relate to the Contracts or
the Account, promptly after the filing of such document(s) with
the SEC or other regulatory authorities. The Company shall
provide to the Fund and the Underwriter any complaints received
from the Contract owners pertaining to the Fund or the Designated
Portfolio.
4.7. The Fund will provide the Company with as much notice as is
reasonably practicable of any proxy solicitation for any
Designated Portfolio, and of any material change in the Fund's
registration statement, particularly any change resulting in a
change to the registration statement or prospectus for any
Account. The Fund will work with the Company so as to enable the
Company to solicit proxies from Contract owners, or to make
changes to its prospectus or registration statement, in an
orderly manner. The Fund will make reasonable efforts to attempt
to have changes affecting Contract prospectuses become effective
simultaneously with the annual updates for such prospectuses.
4.8. For purposes of this Article IV, the phrase "sales
literature and other promotional materials" includes, but is not
limited to, any of the following that refer to the Fund or any
affiliate of the Fund: advertisements (such as material
published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording,
videotape display, signs or billboards, motion pictures, or other
public media), sales literature (i.e., any written communication
distributed or made generally available to customers or the
public, including brochures, circulars, reports, market letters,
form letters, seminar texts, reprints or excerpts of any other
advertisement, sales literature, or published article),
educational or training materials or other communications
distributed or made generally available to some or all agents or
employees, and registration statements, prospectuses, SAIs,
shareholder reports, proxy materials, and any other
communications distributed or made generally available with
regard to the Fund.
ARTICLE V. Fees and Expenses
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5.1. The Fund and the Underwriter shall pay no fee or other
compensation to the Company under this Agreement, except that if
the Fund or any Portfolio adopts and implements a plan pursuant
to Rule 12b-1 to finance distribution expenses, then the Fund or
Underwriter may make payments to the Company or to the
underwriter for the Contracts if and in amounts agreed to by the
Underwriter in writing, and such payments will be made out of
existing fees otherwise payable to the Underwriter, past profits
of the Underwriter, or other resources available to the
Underwriter. Currently, no such payments are contemplated.
5.2. All expenses incident to performance by the Fund under this
Agreement shall be paid by the Fund. The Fund shall see to it
that all its shares are registered and authorized for issuance in
accordance with applicable federal law and, if and to the extent
deemed advisable by the Fund, in accordance with applicable state
laws prior to their sale. The Fund shall bear the expenses for
the cost of registration and qualification of the Fund's shares,
preparation and filing of the Fund's prospectus and registration
statement, proxy materials and reports, setting the prospectus in
type, setting in type and printing the proxy materials and
reports to shareholders (including the costs of printing a
prospectus that constitutes an annual report), the preparation of
all statements and notices required by any federal or state law,
and all taxes on the issuance or transfer of the Fund's shares.
5.3. The Company shall bear the expenses of distributing the
Fund's prospectus to owners of Contracts issued by the Company
and of distributing the Fund's proxy materials and reports to
such Contract owners.
ARTICLE VI. Diversification and Qualification
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6.1. The Fund will invest its assets in such a manner as to
ensure that the Contracts will be treated as annuity or life
insurance contracts, whichever is appropriate, under the Code and
the regulations issued thereunder (or any successor provisions).
Without limiting the scope of the foregoing, each Designated
Portfolio has complied and will continue to comply with Section
817(h) of the Code and Treasury Regulation 1.817-5, and any
Treasury interpretations thereof, relating to the diversification
requirements for variable annuity, endowment, or life insurance
contracts, and any amendments or other modifications or successor
provisions to such Section or Regulations. In the event of a
breach of this Article VI by the Fund, it will take all
reasonable steps (a) to notify the Company of such breach and (b)
to adequately diversify the Fund so as to achieve compliance
within the grace period afforded by Regulation 1.817-5.
6.2. The Fund represents that it is or will be qualified as a
Regulated Investment Company under Subchapter M of the Code, and
that it will make every effort to maintain such qualification
(under Subchapter M or any successor or similar provisions) and
that it will notify the Company immediately upon having a
reasonable basis for believing that it has ceased to so qualify
or that it might not so qualify in the future.
6.3. The Company represents that the Contracts are currently, and
at the time of issuance shall be, treated as life insurance or
annuity insurance contracts, under applicable provisions of the
Code, and that it will make every effort to maintain such
treatment, and that it will notify the Fund and the Underwriter
immediately upon having a reasonable basis for believing the
Contracts have ceased to be so treated or that they might not be
so treated in the future. The Company agrees that any prospectus
offering a contract that is a "modified endowment contract" as
that term is defined in Section 7702A of the Code (or any
successor or similar provision), shall identify such contract as
a modified endowment contract.
ARTICLE VII. Potential Conflicts
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The following provisions shall apply only upon issuance of the
Mixed and Shared Funding Order and the sale of shares of the Fund
to variable life insurance separate accounts, and then only to
the extent required under the 1940 Act.
7.1. The Board will monitor the Fund for the existence of any
material irreconcilable conflict between the interests of the
Contract owners of all separate accounts investing in the Fund.
An irreconcilable material conflict may arise for a variety of
reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state
insurance, tax, or securities laws or regulations, or a public
ruling, private letter ruling, no-action or interpretative
letter, or any similar action by insurance, tax, or securities
regulatory authorities; (c) an administrative or judicial
decision in any relevant proceeding; (d) the manner in which the
investments of any Portfolio are being managed; (e) a difference
in voting instructions given by variable annuity contract and
variable life insurance contract owners; or (f) a decision by an
insurer to disregard the voting instructions of contract owners.
The Board shall promptly inform the Company if it determines that
an irreconcilable material conflict exists and the implications
thereof.
7.2. The Company will report any potential or existing conflicts
of which it is aware to the Board. The Company will assist the
Board in carrying out its responsibilities under the Mixed and
Shared Funding Exemptive Order, by providing the Board with all
information reasonably necessary for the Board to consider any
issues raised. This includes, but is not limited to, an
obligation by the Company to inform the Board whenever Contract
owner voting instructions are disregarded.
7.3. If it is determined by a majority of the Board, or a
majority of its disinterested members, that a material
irreconcilable conflict exists, the Company and other
Participating Insurance Companies shall, at their expense and to
the extent reasonably practicable (as determined by a majority of
the disinterested Board members), take whatever steps are
necessary to remedy or eliminate the irreconcilable material
conflict, up to and including: (1) withdrawing the assets
allocable to some or all of the separate accounts from the Fund
or any Portfolio and reinvesting such assets in a different
investment medium, including (but not limited to) another
Portfolio of the Fund, or submitting the question whether such
segregation should be implemented to a vote of all affected
contract owners and, as appropriate, segregating the assets of
any appropriate group (i.e., annuity contract owners, life
insurance contract owners, or variable contract owners of one or
more Participating Insurance Companies) that votes in favor of
such segregation, or offering to the affected contract owners the
option of making such a change; and (2) establishing a new
registered management investment company or managed separate
account.
7.4. If a material irreconcilable conflict arises because of a
decision by the Company to disregard Contract owner voting
instructions and that decision represents a minority position or
would preclude a majority vote, the Company may be required, at
the Fund's election, to withdraw the Account's investment in the
Fund and terminate this Agreement with respect to each Account;
provided, however, that such withdrawal and termination shall be
limited to the extent required by the foregoing material
irreconcilable conflict as determined by a majority of the
disinterested members of the Board. Any such withdrawal and
termination must take place within six (6) months after the Fund
gives written notice that this provision is being implemented,
and until the end of that six month period the Fund shall
continue to accept and implement orders by the Company for the
purchase (and redemption) of shares of the Fund.
7.5. If a material irreconcilable conflict arises because a
particular state insurance regulator's decision applicable to the
Company conflicts with the majority of other state regulators,
then the Company will withdraw the affected Account's investment
in the Fund and terminate this Agreement with respect to such
Account within six months after the Board informs the Company in
writing that it has determined that such decision has created an
irreconcilable material conflict; provided, however, that such
withdrawal and termination shall be limited to the extent
required by the foregoing material irreconcilable conflict as
determined by a majority of the disinterested members of the
Board. Until the end of the foregoing six month period, the Fund
shall continue to accept and implement orders by the Company for
the purchase (and redemption) of shares of the Fund.
7.6. For purposes of Section 7.3 through 7.6 of this Agreement, a
majority of the disinterested members of the Board shall
determine whether any proposed action adequately remedies any
irreconcilable material conflict, but in no event will the Fund
be required to establish a new funding medium for the Contracts.
The Company shall not be required by Section 7.3 to establish a
new funding medium for the Contract if an offer to do so has been
declined by vote of a majority of Contract owners materially
adversely affected by the irreconcilable material conflict. In
the event that the Board determines that any proposed action does
not adequately remedy any irreconcilable material conflict, then
the Company will withdraw the Account's investment in the Fund
and terminate this Agreement within six (6) months after the
Board informs the Company in writing of the foregoing
determination; provided, however, that such withdrawal and
termination shall be limited to the extent required by any such
material irreconcilable conflict as determined by a majority of
the disinterested members of the Board.
7.7. If and to the extent the Mixed and Shared Funding Exemption
Order or any amendment thereto contains terms and conditions
different from Sections 3.4, 3.5, 3.6, 7.1, 7.2, 7.3, 7.4, and
7.5 of this Agreement, then the Fund and/or the Participating
Insurance Companies, as appropriate, shall take such steps as may
be necessary to comply with the Mixed and Shared Funding
Exemptive Order, and Sections 3.4, 3.5, 3.6, 7.1, 7.2, 7.3, 7.4
and 7.5 of this Agreement shall continue in effect only to the
extent that terms and conditions substantially identical to such
Sections are contained in the Mixed and Shared Funding Exemptive
Order or any amendment thereto. If and to the extent that Rule
6e-2 and Rule 6e-3(T) are amended, or Rule 6e-3 is adopted, to
provide exemptive relief from any provision of the 1940 Act or
the rules promulgated thereunder with respect to mixed or shared
funding (as defined in the Mixed and Shared Funding Exemptive
Order) on terms and conditions materially different from those
contained in the Mixed and Shared Funding Exemptive Order, then
(a) the Fund and/or the Participating Insurance Companies, as
appropriate, shall take such steps as may be necessary to comply
with Rules 6e-2 and 6e-3(T), as amended, and Rule 6e-3, as
adopted, to the extent such rules are applicable; and
(b) Sections 3.5, 3.6, 7.1., 7.2, 7.3, 7.4, and 7.5 of this
Agreement shall continue in effect only to the extent that terms
and conditions substantially identical to such Sections are
contained in such Rule(s) as so amended or adopted.
ARTICLE VIII. Indemnification
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8.1. Indemnification By the Company
8.1(a). The Company agrees to indemnify and hold
harmless the Fund and the Underwriter and each of its
trustees/directors and officers, and each person, if any, who
controls the Fund or Underwriter within the meaning of Section 15
of the 1933 Act or who is under common control with the
Underwriter (collectively, the "Indemnified Parties" for purposes
of this Section 8.1) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the
written consent of the Company) or litigation (including legal
and other expenses), to which the Indemnified Parties may become
subject under any statute or regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions in respect thereof) or settlements:
(i) arise out of or are based upon any untrue statement or
alleged untrue statements of any material fact contained in the
registration statement, prospectus (which shall include a written
description of a Contract that is not registered under the 1933
Act), or SAI for the Contracts or contained in the Contracts or
sales literature for the Contracts (or any amendment or
supplement to any of the foregoing), or arise out of or are based
upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make
the statements therein not misleading, provided that this
agreement to indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged statement or
omission was made in reliance upon and in conformity with
information furnished to the Company by or on behalf of the Fund
for use in the registration statement, prospectus or SAI for the
Contracts or in the Contracts or sales literature (or any
amendment or supplement) or otherwise for use in connection with
the sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
registration statement, prospectus, SAI, or sales literature of
the Fund not supplied by the Company or persons under its
control) or wrongful conduct of the Company or its agents or
persons under the Company's authorization or control, with
respect to the sale or distribution of the Contracts or Fund
Shares; or
(iii) arise out of any untrue statement or alleged untrue
statement of a material fact contained in a registration
statement, prospectus, SAI, or sales literature of the Fund or
any amendment thereof or supplement thereto or the omission or
alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not
misleading if such a statement or omission was made in reliance
upon information furnished to the Fund by or on behalf of the
Company; or
(iv) arise as a result of any material failure by the Company to
provide the services and furnish the materials under the terms of
this Agreement (including a failure, whether unintentional or in
good faith or otherwise, to comply with the qualification
requirements specified in Article VI of this Agreement); or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Company;
(vi) as limited by and in accordance with the provisions of
Sections 8.1(b) and 8.1(c) hereof.
8.1(b). The Company shall not be liable under
this indemnification provision with respect to any losses,
claims, damages, liabilities or litigation to which an
Indemnified Party would otherwise be subject by reason of such
Indemnified Party's willful misfeasance, bad faith, or gross
negligence in the performance of such Indemnified Party's duties
or by reason of such Indemnified Party's reckless disregard of
its obligations or duties under this Agreement.
8.1(c). The Company shall not be liable under
this indemnification provision with respect to any claim made
against an Indemnified Party unless such Indemnified Party shall
have notified the Company in writing within a reasonable time
after the summons or other first legal process giving information
of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have
received notice of such service on any designated agent), but
failure to notify the Company of any such claim shall not relieve
the Company from any liability which it may have to the
Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision. In case any
such action is brought against an Indemnified Party, the Company
shall be entitled to participate, at its own expense, in the
defense of such action. The Company also shall be entitled to
assume the defense thereof, with counsel satisfactory to the
party named in the action. After notice from the Company to such
party of the Company's election to assume the defense thereof,
the Indemnified Party shall bear the fees and expenses of any
additional counsel retained by it, and the Company will not be
liable to such party under this Agreement for any legal or other
expenses subsequently incurred by such party independently in
connection with the defense thereof other than reasonable costs
of investigation.
8.1(d). The Indemnified Parties will promptly
notify the Company of the commencement of any litigation or
proceedings against them in connection with the issuance or sale
of the Fund shares or the Contracts or the operation of the Fund.
8.2. Indemnification by the Underwriter
8.2(a). The Underwriter agrees to indemnify and
hold harmless the Company and each of its directors and officers
and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act (collectively, the
"Indemnified Parties" for purposes of this Section 8.2) against
any and all losses, claims, damages, liabilities (including
amounts paid in settlement with the written consent of the
Underwriter) or litigation (including legal and other expenses)
to which the Indemnified Parties may become subject under any
statute or regulation, at common law or otherwise, insofar as
such losses, claims, damages, liabilities or expenses (or actions
in respect thereof) or settlements:
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the
registration statement or prospectus or SAI or sales literature
of the Fund (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the omission or the
alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not
misleading, provided that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission
or such alleged statement or omission was made in reliance upon
and in conformity with information furnished to the Underwriter
or Fund by or on behalf of the Company for use in the
registration statement, prospectus or SAI for the Fund or in
sales literature (or any amendment or supplement) or otherwise
for use in connection with the sale of the Contracts or Fund
shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
registration statement, prospectus, SAI or sales literature for
the Contracts not supplied by the Underwriter or persons under
its control) or wrongful conduct of the Fund or Underwriter or
persons under their control, with respect to the sale or
distribution of the Contracts or Fund shares; or
(iii) arise out of any untrue statement or alleged untrue
statement of a material fact contained in a registration
statement, prospectus, SAI or sales literature covering the
Contracts, or any amendment thereof or supplement thereto, or the
omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statement
or statements therein not misleading, if such statement or
omission was made in reliance upon information furnished to the
Company by or on behalf of the Fund or the Underwriter; or
(iv) arise as a result of any failure by the Fund or the
Underwriter to provide the services and furnish the materials
under the terms of this Agreement (including a failure of the
Fund, whether unintentional or in good faith or otherwise, to
comply with the diversification and other qualification
requirements specified in Article VI of this Agreement); or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Underwriter in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Underwriter;
as limited by and in accordance with the provisions of Sections
8.2(b) and 8.2(c) hereof.
8.2(b). The Underwriter shall not be liable
under this indemnification provision with respect to any losses,
claims, damages, liabilities or litigation to which an
Indemnified Party would otherwise be subject by reason of such
Indemnified Party's willful misfeasance, bad faith, or gross
negligence in the performance or such Indemnified Party's duties
or by reason of such Indemnified Party's reckless disregard of
obligations and duties under this Agreement or to the Company or
the Account, whichever is applicable.
8.2(c). The Underwriter shall not be liable
under this indemnification provision with respect to any claim
made against an Indemnified Party unless such Indemnified Party
shall have notified the Underwriter in writing within a
reasonable time after the summons or other first legal process
giving information of the nature of the claim shall have been
served upon such Indemnified Party (or after such Indemnified
Party shall have received notice of such service on any
designated agent), but failure to notify the Underwriter of any
such claim shall not relieve the Underwriter from any liability
which it may have to the Indemnified Party against whom such
action is brought otherwise than on account of this
indemnification provision. In case any such action is brought
against the Indemnified Party, the Underwriter will be entitled
to participate, at its own expense, in the defense thereof. The
Underwriter also shall be entitled to assume the defense thereof,
with counsel satisfactory to the party named in the action.
After notice from the Underwriter to such party of the
Underwriter's election to assume the defense thereof, the
Indemnified Party shall bear the fees and expenses of any
additional counsel retained by it, and the Underwriter will not
be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently
in connection with the defense thereof other than reasonable
costs of investigation.
The Company agrees promptly to notify the
Underwriter of the commencement of any litigation or proceedings
against it or any of its officers or directors in connection with
the issuance or sale of the Contracts or the operation of the
Account.
8.3. Indemnification By the Fund
8.3(a). The Fund agrees to indemnify and hold
harmless the Company and each of its directors and officers and
each person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act (collectively, the "Indemnified
Parties" for purposes of this Section 8.3) against any and all
losses, claims, expenses, damages, liabilities (including amounts
paid in settlement with the written consent of the Fund) or
litigation (including legal and other expenses) to which the
Indemnified Parties may be required to pay or may become subject
under any statute or regulation, at common law or otherwise,
insofar as such losses, claims, expenses, damages, liabilities or
expenses (or actions in respect thereof) or settlements, are
related to the operations of the Fund and:
(i) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this
Agreement (including a failure, whether unintentional or in good
faith or otherwise, to comply with the diversification and other
qualification requirements specified in Article VI of this
Agreement); or
(ii) arise out of or result from any material breach of any
representation and/or warranty made by the Fund in this Agreement
or arise out of or result from any other material breach of this
Agreement by the Fund;
as limited by and in accordance with the provisions of Sections
8.3(b) and 8.3(c) hereof.
8.3(b). The Fund shall not be liable under this
indemnification provision with respect to any losses, claims,
damages, liabilities or litigation to which an Indemnified Party
would otherwise be subject by reason of such Indemnified Party's
willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of
such Indemnified Party's reckless disregard of obligations and
duties under this Agreement or to the Company, the Fund, the
Underwriter or the Account, whichever is applicable.
8.3(c). The Fund shall not be liable under this
indemnification provision with respect to any claim made against
an Indemnified Party unless such Indemnified Party shall have
notified the Fund in writing within a reasonable time after the
summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified
Party (or after such Indemnified Party shall have received notice
of such service on any designated agent), but failure to notify
the Fund of any such claim shall not relieve the Fund from any
liability which it may have to the Indemnified Party against whom
such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought
against the Indemnified Parties, the Fund will be entitled to
participate, at its own expense, in the defense thereof. The
Fund also shall be entitled to assume the defense thereof, with
counsel satisfactory to the party named in the action. After
notice from the Fund to such party of the Fund's election to
assume the defense thereof, the Indemnified Party shall bear the
fees and expenses of any additional counsel retained by it, and
the Fund will not be liable to such party under this Agreement
for any legal or other expenses subsequently incurred by such
party independently in connection with the defense thereof other
than reasonable costs of investigation.
8.3(d). The Company and the Underwriter agree
promptly to notify the Fund of the commencement of any litigation
or proceeding against it or any of its respective officers or
directors in connection with the Agreement, the issuance or sale
of the Contracts, the operation of the Account, or the sale or
acquisition of shares of the Fund.
ARTICLE IX. Applicable Law
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9.1. This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of
California.
9.2. This Agreement shall be subject to the provisions of the
1933, 1934 and 1940 Acts, and the rules and regulations and
rulings thereunder, including such exemptions from those
statutes, rules and regulations as the SEC may grant (including,
but not limited to, any Mixed and Shared Funding Exemptive Order)
and the terms hereof shall be interpreted and construed in
accordance therewith. If, in the future, the Mixed and Shared
Funding Exemptive Order should no longer be necessary under
applicable law, then Article VII shall no longer apply.
ARTICLE X. Termination
10. This text is hidden, do not remove.
10.1. This Agreement shall continue in full force and effect
until the first to occur of:
(a) termination by any party, for any reason with respect to
some or all Designated Portfolios, by three (3) months advance
written notice delivered to the other parties; or
(b) termination by the Company by written notice to the Fund and
the Underwriter based upon the Company's determination that
shares of the Fund are not reasonably available to meet the
requirements of the Contracts; or
(c) termination by the Company by written notice to the Fund and
the Underwriter in the event any of the Designated Portfolio's
shares are not registered, issued or sold in accordance with
applicable state and/or federal law or such law precludes the use
of such shares as the underlying investment media of the
Contracts issued or to be issued by the Company; or
(d) termination by the Fund or Underwriter in the event that
formal administrative proceedings are instituted against the
Company by the NASD, the SEC, the Insurance Commissioner or like
official of any state or any other regulatory body regarding the
Company's duties under this Agreement or related to the sale of
the Contracts, the operation of any Account, or the purchase of
the Fund's shares; provided, however, that the Fund or
Underwriter determines in its sole judgment exercised in good
faith, that any such administrative proceedings will have a
material adverse effect upon the ability of the Company to
perform its obligations under this Agreement; or
(e) termination by the Company in the event that formal
administrative proceedings are instituted against the Fund or
Underwriter by the NASD, the SEC, or any state securities or
insurance department or any other regulatory body; provided,
however, that the Company determines in its sole judgment
exercised in good faith, that any such administrative proceedings
will have a material adverse effect upon the ability of the Fund
or Underwriter to perform its obligations under this Agreement;
or
(f) termination by the Company by written notice to the Fund and
the Underwriter with respect to any Designated Portfolio in the
event that such Portfolio ceases to qualify as a Regulated
Investment Company under Subchapter M or fails to comply with the
Section 817(h) diversification requirements specified in Article
VI hereof, or if the Company reasonably believes that such
Portfolio may fail to so qualify or comply; or
(g) termination by the Fund or Underwriter by written notice to
the Company in the event that the Contracts fail to meet the
qualifications specified in Article VI hereof; or
(h) termination by either the Fund or the Underwriter by written
notice to the Company, if either one or both of the Fund or the
Underwriter respectively, shall determine, in their sole judgment
exercised in good faith, that the Company has suffered a material
adverse change in its business, operations, financial condition,
or prospects since the date of this Agreement or is the subject
of material adverse publicity; or
(i) termination by the Company by written notice to the Fund and
the Underwriter, if the Company shall determine, in its sole
judgment exercised in good faith, that the Fund, Adviser, or the
Underwriter has suffered a material adverse change in its
business, operations, financial condition or prospects since the
date of this Agreement or is the subject of material adverse
publicity; or
(j) termination by the Fund or the Underwriter by written notice
to the Company, if the Company gives the Fund and the Underwriter
the written notice specified in Section 1.7(a)(ii) hereof and at
the time such notice was given there was no notice of termination
outstanding under any other provision of this Agreement;
provided, however, any termination under this Section 10.1(j)
shall be effective forty-five days after the notice specified in
Section 1.7(a)(ii) was given; or
(k) termination by the Company upon any substitution of the
shares of another investment company or series thereof for shares
of a Designated Portfolio of the Fund in accordance with the
terms of the Contracts, provided that the Company has given at
least 45 days prior written notice to the Fund and Underwriter of
the date of substitution; or
(l) termination by any party in the event that the Fund's Board
of Trustees determines that a material irreconcilable conflict
exists as provided in Article VII.
10.2. Notwithstanding any termination of this Agreement, the
Fund and the Underwriter shall, at the option of the Company,
continue to make available additional shares of the Fund pursuant
to the terms and conditions of this Agreement, for all Contracts
in effect on the effective date of termination of this Agreement
(hereinafter referred to as "Existing Contracts"), unless the
Underwriter requests that the Company seek an order pursuant to
Section 26(b) of the 1940 Act to permit the substitution of other
securities for the shares of the Designated Portfolios. The
Underwriter agrees to split the cost of seeking such an order,
and the Company agrees that it shall reasonably cooperate with
the Underwriter and seek such an order upon request.
Specifically, the owners of the Existing Contracts may be
permitted to reallocate investments in the Fund, redeem
investments in the Fund and/or invest in the Fund upon the making
of additional purchase payments under the Existing Contracts
(subject to any such election by the Underwriter). The parties
agree that this Section 10.2 shall not apply to any terminations
under Article VII and the effect of such Article VII terminations
shall be governed by Article VII of this Agreement. The parties
further agree that this Section 10.2 shall not apply to any
terminations under Section 10.1(g) of this Agreement.
10.3. The Company shall not redeem Fund shares attributable
to the Contracts (as opposed to Fund shares attributable to the
Company's assets held in the Account) except (i) as necessary to
implement Contract owner initiated or approved transactions, (ii)
as required by state and/or federal laws or regulations or
judicial or other legal precedent of general application
(hereinafter referred to as a "Legally Required Redemption"),
(iii) upon 45 days prior written notice to the Fund and
Underwriter, as permitted by an order of the SEC pursuant to
Section 26(b) of the 1940 Act, but only if a substitution of
other securities for the shares of the Designated Portfolios is
consistent with the terms of the Contracts, or (iv) as permitted
under the terms of the Contract. Upon request, the Company will
promptly furnish to the Fund and the Underwriter reasonable
assurance that any redemption pursuant to clause (ii) above is a
Legally Required Redemption. Furthermore, except in cases where
permitted under the terms of the Contacts, the Company shall not
prevent Contract owners from allocating payments to a Portfolio
that was otherwise available under the Contracts without first
giving the Fund or the Underwriter 45 days notice of its
intention to do so.
10.4. Notwithstanding any termination of this Agreement, each
party's obligation under Article VIII to indemnify the other
parties shall survive.
ARTICLE XI. Notices
11. This text is hidden, do not remove.
Any notice shall be sufficiently given when sent
by registered or certified mail to the other party at the address
of such party set forth below or at such other address as such
party may from time to time specify in writing to the other
party.
If to the Fund: PIMCO Variable Insurance
Trust
840 Newport Center Drive, Suite 360
Newport Beach, CA 92660
If to the Company:
If to Underwriter: PIMCO Funds Distributors LLC
2187 Atlantic Street
Stamford, CT 06902
ARTICLE XII. Miscellaneous
12. This text is hidden, do not remove.
12.1. All persons dealing with the Fund must look solely to
the property of the Fund, and in the case of a series company,
the respective Designated Portfolios listed on Schedule A hereto
as though each such Designated Portfolio had separately
contracted with the Company and the Underwriter for the
enforcement of any claims against the Fund. The parties agree
that neither the Board, officers, agents or shareholders of the
Fund assume any personal liability or responsibility for
obligations entered into by or on behalf of the Fund.
12.2. Subject to the requirements of legal process and
regulatory authority, each party hereto shall treat as
confidential the names and addresses of the owners of the
Contracts and all information reasonably identified as
confidential in writing by any other party hereto and, except as
permitted by this Agreement, shall not disclose, disseminate or
utilize such names and addresses and other confidential
information without the express written consent of the affected
party until such time as such information has come into the
public domain.
12.3. The captions in this Agreement are included for
convenience of reference only and in no way define or delineate
any of the provisions hereof or otherwise affect their
construction or effect.
12.4. This Agreement may be executed simultaneously in two or
more counterparts, each of which taken together shall constitute
one and the same instrument.
12.5. If any provision of this Agreement shall be held or
made invalid by a court decision, statute, rule or otherwise, the
remainder of the Agreement shall not be affected thereby.
12.6. Each party hereto shall cooperate with each other party
and all appropriate governmental authorities (including without
limitation the SEC, the NASD, and state insurance regulators) and
shall permit such authorities reasonable access to its books and
records in connection with any investigation or inquiry relating
to this Agreement or the transactions contemplated hereby.
Notwithstanding the generality of the foregoing, each party
hereto further agrees to furnish the [insert state] Insurance
Commissioner with any information or reports in connection with
services provided under this Agreement which such Commissioner
may request in order to ascertain whether the variable annuity
operations of the Company are being conducted in a manner
consistent with the [insert state] variable annuity laws and
regulations and any other applicable law or regulations.
12.7. The rights, remedies and obligations contained in this
Agreement are cumulative and are in addition to any and all
rights, remedies, and obligations, at law or in equity, which the
parties hereto are entitled to under state and federal laws.
12.8. This Agreement or any of the rights and obligations
hereunder may not be assigned by any party without the prior
written consent of all parties hereto.
12.9. The Company shall furnish, or shall cause to be
furnished, to the Fund or its designee copies of the following
reports:
(a) the Company's annual statement (prepared under statutory
accounting principles) and annual report (prepared under
generally accepted accounting principles) filed with any state or
federal regulatory body or otherwise made available to the
public, as soon as practicable and in any event within 90 days
after the end of each fiscal year; and
(b) any registration statement (without exhibits) and financial
reports of the Company filed with the Securities and Exchange
Commission or any state insurance regulatory, as soon as
practicable after the filing thereof.
IN WITNESS WHEREOF, each of the parties hereto has caused
this Agreement to be executed in its name and on its behalf by
its duly authorized representative and its seal to be hereunder
affixed hereto as of the date specified below.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
By its authorized officer
By:/s/Barnett Chernow
---------------------------
Title: Barnett Chernow, Vice President
------------------------
Date: May 1, 1998
------------------------
PIMCO VARIABLE INSURANCE TRUST
By its authorized officer
By:/s/ Brent R. Harris
---------------------------
Title: Chairman
------------------------
Date: May 1, 1998
------------------------
PIMCO FUNDS DISTRIBUTORS LLC
By its authorized officer
By:/s/ Newton Schott
---------------------------
Title: Executive Vice President
------------------------
Date: May 1, 1998
------------------------
8194921.doc
<PAGE>
Equitable Life Insurance Company of Iowa
USG Annuity & Life Company/r/
Golden American Life Insurance Company
Equitable Investment Services, Inc.
Locust Street Securities, Inc.
April 14, 1999
Board of Directors
Equitable Life Insurance Company of Iowa
909 Locust Street
Des Moines, Iowa 50309
RE: Opinion and Consent of Counsel, Equitable Life
Insurance Company of Iowa Separate Account A
Gentlemen:
You have requested my Opinion of Counsel in connection with the filing with
the Securities and Exchange Commission of a Registration Statement on Form
N-4 for the Individual Flexible Purchase Payment Deferred Variable and Fixed
Annuity Contracts (the "Contracts") to be issued by Equitable Life Insurance
Company of Iowa and its separate account, Equitable Life Insurance Company
of Iowa Separate Account A.
I have made such examination of the law and have examined such records and
documents as in my judgment are necessary or appropriate to enable me to
render the opinions expressed below.
I am of the opinion that:
1. Equitable Life Insurance Company of Iowa Separate Account A is a Unit
Investment Trust as that term is defined in Section 4(2) of the Investment
Company Act of 1940 (the "Act"), and is currently registered with the
Securities and Exchange Commission, pursuant to Section 8(a) of the Act.
2. Upon the acceptance of purchase payments made by an Owner pursuant to
a Contract issued in accordance with the Prospectus contained in the
Registration Statement and upon compliance with applicable law, such an
Owner will have a legally-issued, fully paid, non-assessable contractual
interest under such Contract.
You may use this opinion letter, or a copy thereof, as an exhibit to the
Registration Statement.
I consent to the reference to my name under the caption "Legal Opinions"
contained in the Statement of Additional Information which forms a part of
the Registration Statement.
Sincerely,
/s/ James R. Mumford
----------------------
James R. Mumford
General Counsel and Secretary
Equitable Life Insurance Company of Iowa
USG Annuity & Life Company/r/
909 Locust Street, Des Moines, Iowa 50309-2899
EXHIBIT 10 - CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the captions "Experts" and
"Financial Statements" and to the use of our reports dated February 12,
1999, with respect to the financial statements of Equitable Life Insurance
Company of Iowa, and February 25, 1999, with respect to the financial
statements of Equitable Life Insurance Company of Iowa Separate Account A
in Post-Effective Amendment No. 10 to the Registration Statement (Form N-4
No. 33-79170) and related Prospectuses of Equitable Life Insurance Company
of Iowa Separate Account A.
/s/ ERNST & YOUNG LLP
Des Moines, Iowa
April 23, 1999
Exhibit 15
<PAGE>
EXHIBIT 15
Equitable Life Insurance Company of Iowa
909 Locust Street, Des Moines, Iowa 50309 Phone: (515) 698-7001
Fax: (515) 698-7615
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, being duly elected
Directors and officers of Equitable Life Insurance Company of Iowa
("Equitable Life"), constitute and appoint Myles R. Tashman, and Marilyn
Talman, and each of them, his or her true and lawful attorneys-in-fact and
agents with full power of substitution and resubstitution for him or her in
his or her name, place and stead, in any and all capacities, to sign the
following Equitable Life registration statements, and current amendments to
registration statements, and to file the same, with all exhibits thereto, on
or before May 3, 1999, with the Securities and Exchange Commission, granting
unto said attorneys-in-fact and agents full power and authority to do and
perform each and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he or she might or could do in person,
hereby ratifying and affirming all that said attorneys-in-fact and agents, or
any of them, or his or her substitute or substitutes, may lawfully do or cause
to be done by virtue thereof:
o Post-Effective Amendment currently designated #10 to Separate Account A of
Equitable Life's Registration Statement on Form N-4 (Nos. 33-79170; 811-8524)
SIGNATURE TITLE DATE
- --------- ----- ----
/s/R. Brock Armstrong President April 12, 1999
- ---------------------
R. Brock Armstrong
/s/Thomas L. May Director, Executive Vice April 12, 1999
- --------------------- President and Chief
Thomas L. May Marketing Officer
/s/Christopher R. Welp Director and Senior Vice April 12, 1999
- --------------------- President
Christopher R. Welp
/s/Randy Von Fumetti Director, Senior Vice April 9, 1999
- --------------------- President and Chief
Randy Von Fumetti Financial Officer
/s/Gary J. Walljasper Director and Vice President April 9, 1999
- ---------------------
Gary J. Walljasper
/s/James R. Mumford Director, General Counsel, April 12, 1999
- --------------------- Secretary and Assistant
James R. Mumford Treasurer
/s/Michael R. McCoy Director and Executive Vice April 12, 1999
- --------------------- President
Michael R. McCoy
/s/Jerome L. Sychowski Director, Senior Vice April 9, 1999
- --------------------- President and Chief
Jerome L. Sychowski Information Officer
/s/Marvin W. Alexander Director and Vice President April 12, 1999
- ---------------------
Marvin W. Alexander
/s/Devin L. Reimer Director and Vice President April 12, 1999
- ---------------------
Devin L. Reimer
<PAGE> EXHIBIT (16)
ING Bank N.V.
Alegron Belegging B.V.
ING Bank Ukraine
ING Baring Securities (Romania) S.A.
Amsterdam Exchanges N.V.
Argencontrol
Artolis B.V.
Assurantiebedrijf ING Bank N.V.
Assurantiekantdoor Honig & Hageman BV
Noordster V.O.F.
Volmachtbedrijf ING Bank B.V.
Atlas Investeringsgroep N.V.
Atlas Investors Partnership III C.V.
B.V. Gemeenschappelijk Bezit Aandelen Necigef
Bank Brussels Lambert S.A.
ING Bank (Belgium) N.V./S.A.
Bancard Company S.A.
Cooperation Liquidation Terme Bourse S.C.
Europay Belgium S.C.
Institut De Reescompte S.C.
Societe Belge D' Investissement International S.C.
Society for Worldwide Interbank Financial Telecommunication S.C.
Visa Belgium SC
Bank Mendes Gans NV
B.V. Deelnemings En Financieringsmaatschappij "Nova Zembla"
B.V. Trust En Administratiekantoor Van Bank Mendes Gans N.V.
Bank Mendes Gans Effectenbewaarbedrijf N.V.
Brenko B.V.
Cabel B.V.
Handamar N.V.
Handamar Corporation
Intervest B.V.
Intervest PPM B.V.
Bank Slaski S.A. W Katowicach
*Rodkowoeropejskie Centrum Ratingu I Analiz S.A.
Bankowe Przedsi*Biorstwo Telekom. Telebank S.A.
BSK Konsulting SP Z.O.O.
BSK Leasing S.A.
Centralna Tabela Ofert S.A.
Dom Maklerski BSK S.A.
Gie*Da Papierow Warto*Clowych S.A.
ING BSK Asset Management S.A.
Krajowa Izba Rozliczeniowa S.A.
Biuro Informacji Kredytowe S.A.
Mi*Dzvnarodowa Szko*A Bankowo*Ci I Finansow SP Z.O.O.
Society for Worldwide Interbank Financial Telecommunication S.C.
Banque Baring Brothers (Suisse) S.A.
Benelux Investment Fund B.V.
Berliner Handels - Und Frankfurter Bank A.G.
Buenos Aires Equity Investments N.V.
Emprendimiento Recoleta S.A. (ERSA)
BPEP Holdings Limited
Baring Asia (GP) Limited
Baring European Fund Managers Limited
Baring Latin America GP Limited
Baring Latin America Partners Limited
Baring Private Equity Partners (Asia) PTE. Limited
Baring Private Equity Partners (China) Limited
ING Barings Private Equity (China) Limited
ING BPE (China) Advisers Limited
Baring Private Equity Partners (India) Limited
Baring Private Equity Partners GMBH
Baring Private Equity Partners Limited
Baring Venture Partners GMBH
Baring Venture Partners S.A
BHB Management Limited
BPEP General Partner I Limited
BPEP General Partner II Limited
BPEP Management (UK) Limited
BPEP Nominees Limited
Quartz Capital Partners Limited
Transtech Limited
BCEE Advisers Limited
BCEF Advisers Limited
BHR Management Limited
BI Advisers Limited
Blac Holdings Inc.
Blac Corp. Incorperated
BPEP Management Limited
Baring Mexico (GP) Limited
Baring Private Equity Partners Espana S.A.
Baring Private Equity Partners Mexico S.C.
BVP Mexico S.A.
Cavendish Nominees Limited
BPEP Participations Limited
Baring Vostok Capital Partners Limited
Baring Vostok Fund Managers Limited
ESD Managers Limited
Easdaq S.A.
International Private Equity Services Limited
Polytechnos Venture Partners GMBH
BVP Holdings Limited
Baring Capricorn Ventures Limited
Baring Communications Equity Limited
BCEA Advisers Limited
BCEA Management PTE. Limited
Capricorn Venture Fund N.V.
Procuritas Partners KB
PAB Partner AB
BVP Management Limited
Capricorn Venture Partners N.V.
Czech Venture Partners S.R.O.
CI European Limited
SCGF Advisers Limited
BV Maatschappij Van Onroerende Goederen 'Het Middenstandshuis B'
BV Maatschappij Van Onroerende Goederen 'Het Middenstandshuis'
Amsterdamse Poort III B.V.
Bijlmerplein Leasing BV
Foppingadreef Leasing B.V.
BV Maatschappij Van Onroerende Goederen 'Het Middenstandshuis A'
BV Maatschappij Van Onroerende Goederen 'Het Middenstandshuis C'
Grondpoort III B.V.
C.V. Exploitatiemaatschappij Tunnel Onder De Noord
Cardona B.V.
Cedel International S.A.
Centrum Cocarde B.V.
Cene Bankiers N.V.
Administratie & Trustkantoor Beleggingsfonds Protestants Nederland BV
Amsterdam Exchanges N.V.
Arma Beheer B.V.
Beheer Administratie en Beleggingsmaatschappij Kant B.V.
Bewaarbedrijf Cene Bankiers B.V.
BV Algemene Beleggingsmaatschappij Cene Bankiers N.V.
Beheermaatschappij Jansen Groenekan B.V.
Copar B.V.
Fidele Management B.V.
Flexibel Beheer Utrecht B.V.
Hercules Beheer B.V.
Langosta B.V.
Mercurius Beheer B.V.
Nivo Investments B.V.
Remazon B.V.
Cene Bankiers Holdings N.V.
Cene Asset Management N.V.
Cene Management N.V.
Tawny Owl Investment Company N.V.
Cene Verzekeringen B.V.
N.V. Instituut Voor Ziekenhuisfinanciering
Utrechtse Participatiemaatschappij B.V.
Cofiton B.V.
Sterling Developments B.V.
Brooks Equities Inc.
Location 3 Ltd.
SDC Properties Inc.
Tripolis Vastgoed B.V.
Tripolis A C.V.
Tripolis B C.V.
Tripolis C C.V.
Combdring B.V.
Compensadora Electronica S.A.
Computer Centrum Twente B.V.
Corporacion Financiera ING (Colombia) S.A.
Credit Commercial De France S.A.
Depositary Company ING Bank B.V.
Destara B.V.
ING Bank Ukraine
ING Baring Securities (Romania) S.A.
Effectenbeursvennootschap Van Brussel C.V.
Effectenbewaarbedrijf ING Bank N.V.
Euroclear Clearance System Public Limited Company
European Investment Fund (Center 757)
European Investment Fund (Center 920)
Extra Clearing B.V.
Amsterdam Exchanges N.V.
Extra Clearing GMBH
YVOF Floorbrokers B.V.
Easdaq S.A.
Financial Advisory & Consultancy Services B.V.
Owen Stanley Financial S.A.
Financial Facilities Management B.V.
Finemij B.V.
Gabela Belegging B.V.
Hamgia Beheer B.V.
ING Bank Urkraine
ING Baring Securities (Romania)S.A.
Ingvest III B.V.
Institucion Financiera Externa Middenbank Curacao N.V. (Uruguay)
Interbank On-Line System Limited
International Bankers S.A.
Interpay Nederland B.V.
Interunion Bank (Antilles) N.V.
Interadvies N.V.
Administratiekantoor De Leuve BV
Crediet Service Bank B.V.
Incassobureau Fiditon BV
NV Nationale Volksbank
Arenda B.V.
Spaarfondsen Beheer B.V.
Spaarfondsen Bewaar B.V.
Welvaert Financieringen NV
Welstand B.V.
Internationale Nederlanden (U.S.) Funding Corporation
ING (U.S.) Financial Holdings Corporation
ING (U.S.) Capital Financial Holdings LLC
ING (U.S.) Capital LLC
ING (U.S.) Capital Management Company LLC
ING (U.S.) Investment Corporation
Alliance Precision Plastics Corporation
Nitrogen Products, Inc.
ING Furman Selz Asset Management LLC
FSIP LLC
Taurus Partners, L.P.
The Corner Fund, L.P.
Fairway Capital Partners, L.P.
Anvers, L.P.
Anvers II, L.P.
Artemis Partners, L.P.
Furman Selz Capital Management LLC
Delta Asset Management
NorthStar Asset Management
ING Capital Advisors, LLC
ING Capital Advisors Portfolio Management Corp.
ING Capital Senior Secured High Income Fund, L.P.
ING Emerging Markets Investors LLC
ING Emerging Partners L.P.
ING Equity Holdings, Inc.
ING Equity Partners L.P.
ING Realty Services, Inc.
ING (U.S.) Financial Services Corporation
ING Baring Grupo Financiero (Mexico) S.A. De C.V.
ING Inmobiliaria (Mexico) S.A. de C.V.
ING Bank (Mexico) S.A.
ING Baring (Mexico), S.A. de C.V., Casa de Bolsa
ING Baring (U.S.) Financial Holdings LLC
ING Baring (U.S.) Capital Markets, LLC
ING Baring (U.S.) Capital LLC
ING (U.S.) Latin American Capital LLC
Internationale Nederlanden (U.S.) Real Estate Finance, Inc.
1996 Olympic Corporation
California Acquisition Partners I
Coast Atlantic, Inc.
Highridge ING Atlantic L.P.
Apache Investments, Inc.
Kokopelli Associates, Ltd.
Blue Sky Properties Inc.
Montague Court, LLC
Calprop Portfolio, Inc.
The Center at San Marcos Corporation
Crow's Nest Corporation
Genesee Corporation
Algerine Inc.
Genreo Corporation
Northern Springs Portfolio, Inc
Laketon Corporation
Lucre Lake Corporation
ING Real Estate Investors, Inc.
Little Muddy Creek Corporation
FN Realty Advisors, Inc.
Mountain AMD L.P.
First Ohio Service Corporation
5850 Corporation
Colrad Development Corp.
Evergreen Valley Development
LFS Capital Corporation
Lisle Center, Inc.
Spectrum Holdings, Inc.
Cardinal Mortgage Corporation
E.N. One, Inc.
Fairfield Village Mortgage Corporation
Lincoln Ventures Corporation
Pathway Lands Incorporated
Amarak II Investments Corporation
Pimco Corporation
Baloo Corporation
Can II, LLC
Cap II Foreclosure Corporation
Penn Mar Associates, LLC
Calprop II Portfolio, Inc.
Clear River Associates, Inc.
Amarak Investments Corporation
Great Lakes Management, Inc.
Canadian Ventures I L.P.
Falcon Gate, Inc.
Long Ears Corporation
Pleasantlake Corporation
S G Investors Corporation
Southgate Plaza, LLC
Ventura Ridge Associates, Inc.
Triangle Development Corporation
39 Vestry LLC
Tech Air Corporation
ING Barings Real Estate Acquisition Company
Pentagon Parkway Corporation
Artis Realty Advisors, Inc.
Coconut Corp.
Promontory Point, Inc.
Promontory Point Partnership
Seagate Development Corporation
Able Gateway Plaza, LLC
Mountain Creek Investors, Inc.
Mountain Creek Company, LLC
Telluride Mountain Village Ventures, LLC
Nashpike Corporation
Velocity One Inc.
B&I Associates, LLC
Brookhollow Associates, L.P.
Courtyard Plaza Associates, L.P.
Glen Harbor Associates, LLC
Hightree Associates, LLC
Lakebridge Partners, L.P.
Kent Hospitality Associates, L.P.
Northern Springs Limited Partnership
Ventura Hospitality Partners, L.P.
40 East Associates, L.P.
Springfield Corporate Center, LLC
Fountain Park Partners, L.P.
Westmoreland Associates, L.P.
Green Neck, LLC
Mallard Cove Investors, LLC
Calshops, LLC
BHI-Dover VII, L.P.
BHI-Dover VIII, L.P.
BHI-Dover X, L.P.
BHI-Dover XI, L.P.
Brickyard Investors, L.P.
Eastgate Hospitality Partners, L.P.
Festival Pasadena Associates, L.P.
Golden Bear Homes I, L.P.
Golden Bear Homes II, L.P.
Golden Bear Homes III, L.P.
Golden Bear Homes IV, L.P.
SPA Partners, L.P.
Miami Bay Hospitality Associates, L.P.
Royal River Partners, L.P.
Wildewood Holdings, LLC
Madramp, LLC
201 Madison, LLC
RTC Commercial Assets Trust, NP3-3
Boulders Phoenician Limited Partnership
CPR Investments, Inc.
Phoenician Investments, L.P.
Wisconsin Option Inc.
Hammer & Nails, Inc.
RIB Residential LLC
RBG Residential Investors, LLC
RBG XXXV Corp.
Centerline/RBG XXXV, L.P.
RB Florida Partners, L.P.
Center VII Corporation
Center VIII Corporation
Center X Corporation
Fountain Park Corporation
Royal Falls Corporation
Woodward Investors Corporation
Woodward First National LLC
Qualco, Inc.
Quality Fifth Avenue Hotel Associates, LLc
Fifth Avenue Hospitality Associates, LLC
Baldco, Inc.
Sleepy Lake Corporation
High Flyer Corporation
Airport One Investors, LLC
Lower Westside Development Corp.
359 West 11th Street, LLC
Velocity Two, Inc.
Baldwin Hospitality, LLC
Sleepy Lake Partners, L.P.
ING Merger Inc.
Furman Selz Trust Company
Furman Selz (Ireland) LLC
Furman Selz Financial Services Unlimited
Furman Selz Advisors LLC
Furman Selz Capital LLC
Furman Selz Management (BVI) Ltd.
Furman Selz Investments LLC
Furman Selz Investors, L.P.
Furman Selz SBIC Investments LLC
Furman Selz SBIC, L.P.
ING Baring Furman Selz LLC
Furman Selz Investment II
Furman Selz Investors II, L.P.
Furman Selz Parallel Fund
Artisan Investment Management LLC
Michelangelo Partners, L.P.
Total Resources LLC
Furman Selz Resources LLC
Furman Selz Financial Services LLC
Furman Selz Merchant Capital LLC
Furman Selz Ventures, L.P.
Karnak Partners, L.P.
Saugatuck Partners, L.P.
Crestwood Capital Partners, L.P.
Crestwood Capital Partners II, L.P.
Bridgewood Capital Partners, L.P.
ING TT&S (U.S.) Holdings Corporation
ING TT&S (U.S.) Securities, Inc.
ING (U.S.) Securities, Futures & Options Inc.
ING TT&S (U.S.) Capital Corporation
Furman Selz Proprietary, Inc.
ING (U.S.) Capital Investors Holdings, Inc.
ING (U.S.) Capital Securities, Inc.
Brecco, Inc.
FSIC LLC
Mutual Fund Funding 1994-1
Pacifica Funds Distributor, Inc.
Furman Selz Residential Funding LLC
FS Trust Company
ING Bank (Chile) S.A.
Edibank S.A.
Sociedad Interbancaria De Depositos De Valores S.A.
ING Bank (Eurasia)
ING Bank (Hungary) Rt.
Giro Elszamolasforgalmi Rt.
ING Duna Ingatlanhasznositc KFT
ING Bank (Luxembourg) S.A.
CMF Advisory S.A.H.
Euromix Advisory S.A.H.
ING Bank Luxfund Management S.A.
ING International Advisory S.A.H.
ING International II Advisory S.A.H.
ING Bank (Schweiz) A.G.
Kredietbank S.A. Luxembourgeoise
ING Bank (Uruguay) S.A.
Bolsa Electronica De Valores Del Uruguay S.A.
Compania Uruguaya De Medios De Procesamiento S.A.
Red. De Intercomunicacion De Alta Seguridad S.R.L.
ING Bank of Canada
ING Bank Corporate Investments B.V.
Entero B.V.
Eruca Belegging B.V.
ING Bank Mezzaninefonds B.V.
ING Bank Participatie PPM B.V.
MKB Beleggingen B.V.
MKB Vliehors II B.V.
Wijkertunnel Beheer II B.V.
Wijkertunnel Beheer II Management B.V.
MKB Vliehors III B.V.
Small Business Publishing B.V.
N&M Holding N.V.
ING Bank Dutch Fund N.V.
ING Bank Fondsen Beheer B.V.
ING Bank Geldmarkt Fonds N.V.
ING Bank Global Custody UK Nominees Limited
ING Bank Global Fund N.V.
ING Bank Guldem Fonds N.V.
ING Bank I.T. Fund N.V.
ING Bank Luxfund Management S.A.
ING Bank Middutch Fund N.V.
ING Bank Obligatie Fonds N.V.
ING Bank Rentegroei Fonds N.V.
ING Bank Spaardividend Fonds N.V.
ING Bank Vastgoed Fonds B.V.
ING Bank Verre Oosten Fonds N.V.
ING Baring Capital Markets (C.R.), A.S.
ING Baring Financial Products
ING Baring Holding Nederland B.V.
Atlas Capital (Thailand) Limited ("Atlas")
ING Baring Securities (Thailand) Limited
ING Baring Holdings Limited
Baring Asset Management Holdings Ltd.
Baring Asset Management Ltd.
Baring International Investment Limited
Baring International Investment Management Holdings Ltd.
Baring Asset Management Inc.
Baring International Investment (Canada) Limited
Baring International Investment Management Limited
Baring Asset Management Holdings Inc.
Baring Asset Management UK Holdings Limited
Baring Asset Management (Asia) Holdings Limited
Austin Assets Limited
Baring Asset Management (Asia) Limited
Baring Asset Management (Australia) Limited
Baring Asset Management (Japan) Limited
Baring International Fund Managers (Bermuda) Limited
Baring International Fund Managers Limited
Baring International Investment (Far East) Limited
Baring Pacific Investments Limited
Baring Asset Management (C.I.) Limited
Baring International Fund Managers (Ireland) Ltd.
Baring Investment Services Inc.
Baring Mutual Fund Management S.A.
European and Asian Fund Management S.A.
Baring Investment Management Ltd.
Baring Quantative Management Ltd.
Baring Global Fund Managers Limited
Baring Private Asset Management Ltd.
Baring Fund Managers Limited
Baring Managed Funds Services Ltd.
Baring Private Investment Management Ltd.
Baring Trust Company Ltd.
Baring Trustees (Guernsey) Limited
Arnold Limited
International Metal Trading Limited
Barings (Isle of Man) Limited
Control Management Limited
Doyle Administration Limited
International Metal Trading Limited
ING Trust (Jersey) Ltd
Saline Nominees Limited
Truchot Limited
Vivian Limited
Barings (Guernsey) Limited
Barfield Nominees Limited
Barings Ireland Limited
Guernsey International Fund Managers Limited
Arnold Limited
International Metal Trading Limited
Control Management Limited
Doyle Administration Limited
International Metal Trading Limited
International Fund Managers (Ireland) Ltd.
International Securitisation Managers (Ireland) Ltd
Saline Nominees Limited
Truchot Limited
Vivian Limited
International Fund Managers UK Ltd.
Ravensbourne Registration Services Ltd.
Barings Investment Services Limited
Baring Brothers Holdings Limited
Baring (U.S.) Holdings Limited
Abbotstone Investment Company Limited
Baring Brothers Limited
Baring Brothers (Finance) Limited
Baring Brothers Argentina S.A.
Baring Brothers International Limited
Barings C.F. Holdings Limited
B.B.A.H. Pty Limited
Baring Brothers Burrows & Co. Limited
Baring Brothers Burrows Securities Limited
SAIPH Pty Limited
BBHP Pty Limited
Baring Brothers (Deutschland) GMBH
Baring Brothers International GMBH
Baring Brothers (Espana) S.A.
Barings Brothers (Italia) SRL
Baring Properties (London Wall) Limited
Baring Properties Limited
Outwich Finance Limited
Outwich Limited
Baring Warrants PLC
Barings France S.A.
Barings Nominees Limited
Bishopscourt Holdings Limited
Bishipscourt Leasing (Holdings) Limited
Bishopscourt Asset Leasing Limited
Bishopscourt Equipment Leasing Limited
Bishopscourt Industrial Finance Limited
Bishopscourt Limited
Bishopscourt Securities Limited
BVC Nominees Limited
Cotton Nominees Limited
ING Baring International Advisers Limited
ING Baring Services (Eastern Europe) Limited
ING Baring Services Limited
The Mortgage Acceptance Corporation (Holdings) Limited
The Mortgage Acceptance Corporation Limited
Yealme Securities Limited
ING Baring Financial Products
ING Baring Securities Holdings Limited
ING Baring Securities Limited
ING Baring Securities (Andean Pact) Ltda
ING Barings Peru S.A.
ING Baring Securities Services Limited
Baring Securities (Property Services) Ltd
BS Property Services (Japan) Limited
ING Baring Data Limited
INGB Dormant Holding Company Limited
Baring Securities (London) Limited
Baring Securities (OTC Options) Limited
ING Baring Management Services PTE Ltd
ING Baring Research Limited
ING Baring Securities (Overseas) Ltd.
ING Baring Securities Management Services (Hong Kong) Ltd
Maketravel Limited
INGB Securities (International) Holdings Limited
Baring Securities (Financial Services) Limited
Barsec (International) Limited
Baring Nominees (Australia) Pty Ltd
Baring Research S.A. De C.V.
Baring Securities (Australia) Limited
Baring Securities (France) S.A.
Baring Securities Pakistan (Private) Limited
Barings Mauritius Limited
ING Barings India Private Limited
ING Baring Securities (India) Pvt. Ltd.
Celtec Holdings S.A.
ING Baring Corretora De Valores Mobiliarios S.A.
Corinvest Limited
Epcorp Limited
Galax Limited
Dropny B.V.
ING Baring Chile Limitada
ING Baring International PTE Ltd
ING Baring Operational Services (Taiwan) Limited
ING Baring Securities (Andean Pact) Ltda
ING Baring Securities (Hong Kong) Ltd
ING Baring Far East Nominees Limited
ING Baring Securities (Philippines) Inc.
ING Baring Securities (Singapore) PTE Ltd
ING Baring Nominees (Singapore) PTE Ltd
ING Baring Research (Malaysia) SDN. Bhd.
ING Baring Securities (Taiwan) Limited (SICE)
ING Baring Securities, Argentina S.A.
ING Baring South Africa Limited
ING Barings Southern Africa (Proprietary) Ltd
Anodyne Nominees (Proprietary) Limited
ING Barings Peru S.A.
ING Futures & Options (Hong Kong) Limited
ING UK Capital Limited
Lokmaipattana Co. Limited
PT ING Baring Securities Indonesia
INGB Securities Client Services Limited
Aliwall Limited
Barings Securities Nominees Limited
Brunera Limited
Cereus Limited
Dianthus Limited
Eranthis Limited
Francoa Limited
Grassmere Limited
Leacroft Limited
Mountbatten Limited
ING Baring Securities (Japan) Limited
ING Baring Securities (Thailand) Limited
ING Baring Investment (Eurasia) Zao
ING Baring Securities (Hungary) Rt.
ING Baring Securities (Poland) Holding B.V.
ING Baring Securities (Romania) S.A.
ING Baring Securities (Slovakia), S.R.O.
Proctor & Gamble S.R.O.
ING Barings Ecuador Casa De Valores S.A.
ING BSK Asset Management S.A.
ING Capital Markets (Hong Kong) Limited
ING Compania De Inversiones Y Servicios Limitada
Bolsa Electronica De Chile, Bolsa De Valores S.A.
CISL Aruba A.E.C.
ING Consultants Co., Ltd.
ING Derivatives (London) Limited
Belgian Futures & Options Exchange
London Clearing House Limited
Liffe (Holdings) PLC
The International Petroleum Exchange of London Limited
ING Empreendimentos E Participacaos Ltda.
Guilder Corretora De Valores Mobiliarios S/A
ING Guilder Distribuidora De Titulos E Valores Mobiliarios S/A
ING Investment Management Ltda.
ING Servicos Ltda.
ING Finance (Ireland) Ltd
ING Forex Corporation
ING Futures & Options (Singapore) PTE Ltd
ING Inversiones, Ltda.
Corporacion Financiera ING (Colombia) S.A.
ING Investment Management Holdings (Antilles) N.V.
ING Lease Holding N.V.
CW Lease Belgium NV
CW Finance N.V.
CW Lease Luxembourg S.A.
Dealer Lease Service Belgium N.V.
CW Lease Nederland BV
Autolease OSS B.V.
CW Finance N.V.
CW Lease Belgium NV
CW Finance N.V.
CW Lease Luxembourg S.A.
Dealer Lease Service Belgium N.V.
CW Lease France S.N.C.
CW Lease Luxembourg S.A.
Dealer Lease Service Belgium N.V.
Gothia Estate II B.V.
Westment II B.V.
International Driver Service B.V.
Schade Herstel Bedrijf B.V.
ING Aircraft Lease B.V.
Fokker Brasil B.V.
ING Lease (Belgium) N.V.
Real Estate Lease SPC 1 N.V.
Savin Lease N.V.
ING Lease (Espana) EFC, SA
ING Lease (France) S.A.
ING Lease (France) S.N.C.
ING Lease (Italia) SPA
ING Lease (Nederland) B.V.
Blauwe IRM B.V.
Graphic Lease B.V.
Groen Lease B.V.
GIL 1997 (Windkracht) B.V.
ING Lease Vastgoed B.V.
Newco-One Corp.
Ship Lease International B.V.
ZIL '96 B.V.
ING Lease (Polska)
ING Lease Holding (Deutschland) GMBH
CW Lease Deutschland GMBH
CW Lease Berlin GMBH
ING Lease Deutschland GMBH
IFSC Beteiligungsgesellschaft GMBH
ING Lease (Berlin) GMBH
ING Lease Kran und Schwertransport GMBH
ING Leasing Besitzgesellschaft MBH
ING Leasing Geschaeftsfuhrungsgesellschaft MBH
ING Leasing Gesellschaft Fur Beteiligungen MBH
ING Leasing GMBH & Co. Golf KG
ING Leasing GMBH & Co. Juliett KG
ING Leasing Treuhandsgeselschaft GMBH
ING Leasing Verwaltungsgesellschaft GMBH
Uta Finanz und Leasing GMBH
ING Lease Holdings (UK) Limited
CW Lease UK Ltd
CW Finance Ltd.
Leasing Principals Limited
ING Lease (UK) Limited
ING Farm Finance Limited
ING Farm Finance (June) Limited
ING Farm Finance (March) Limited
ING Farm Finance (September) Limited
ING Lease (UK) Nine Limited
ING Lease (UK) Six Limited
ING Lease (UK) Three Limited
MKL Rentals Limited
ING Lease Interfinance B.V.
CW Lease France S.N.C.
ING Lease (Italia) SPA
Real Estate Lease SPC 1 N.V.
Runoto Belgium N.V.
Diamond Lease
ING Lease International Equipment Finance B.V.
ING Aviation Lease B.V.
Air Finance Holland B.V.
Aviation Service Holland B.V.
ING Lease (Far East 2) B.V.
ING Lease (Far East) N.V.
ING Lease (Ireland) B.V.
ING Lease (France) S.N.C.
ING Lease Structured Finance B.V.
Esbelto B.V.
Green Assets B.V.
Hirando B.V.
Hokabe Lease B.V.
ING Bank Geldmarkt Fonds Beheer B.V.
ING Lease Milieu B.V.
Quadralock 2 B.V.
SFING Europe B.V.
Tropelia B.V.
Virgula B.V.
ING Lease International Equipment Management B.V.
Air Finance Amsterdam B.V.
Air Holland Leasing II B.V.
ING (Holland Aircraft Lease) B.V.
ING Lease Aircraft B.V.
ING Lease Delaware, Inc.
Noord Lease B.V.
Postbank-Lease B.V.
Renting De Equipos E Inmuebles SA
Runoto Leasing BV
Runoto Belgium N.V.
Diamond Lease
ING Mercantile Mutual Bank Limited
ING Merchant Bank (Singapore) Limited
Export Credit Insurance Corporation of Singapore Ltd
ING Asset Management (Singapore) Ltd
ING Nominees (Singapore) PTE Ltd
ING Participation Dalrybbank B.V.
ING Private Banking Beheer B.V.
ING Bank Vastgoed Management B.V.
ING Securities (Eurasia) Zao
ING Servicios, C.A.
ING Sociedad De Bolsa (Argentina), S.A.
Mercado De Valores De Buenos Aires S.A.
ING Sviluppo Sim S.P.A.
ING Trust B.V.
Ingress N.V.
ING Management (Hong Kong) Ltd
ING Nominees (Hong Kong) Ltd
ING Trust (Antilles) NV
Formid Management N.V.
ING (Antilles) Portfolio Management N.V.
Monna NV
Jet NV
Simbad N.V.
ING Trust (Aruba) N.V.
ING Trust (BVI) Ltd.
ING Trust (Luxembourg) S.A.
ING Trust (Nederland) B.V.
ING Bank (Eurasia)
ING Bank (Luxembourg) S.A.
CMF Advisory S.A.H.
Euromix Advisory S.A.H.
ING Bank Luxfund Management S.A.
ING International Advisory S.A.H.
ING International II Advisory S.A.H.
ING Baring Securities (Romania) S.A.
ING Holdings Empreendimentos Participacao Ltda.
Guilder Corretora De Valores Mobiliarios S/A
Management Services ING Bank B.V.
ING Bank (Eurasia)
ING Baring Investment (Eurasia) Zao
ING Securities (Eurasia) Zao
Muteka BV
ING Trust (Suisse) AG
Trust Maatschappij ING Bank B.V.
Anorga B.V.
Corpovea B.V.
N.V. Balmore Vastgoed U.S.A.
Den Hamer Beheer B.V.
Diagonac B.V.
Henry F. Holding B.V.
ING Aconto N.V.
N.V. Balmore Vastgoed U.S.A.
Mijcene B.V.
Vitigudino B.V.
N.V. Balmore Vastgoed U.S.A.
N.V. Balmore Vastgoed U.S.A.
Paramito B.V.
Rescit I BV
Storeria B.V.
Tuvor B.V.
Vitigudino B.V.
N.V. Balmore Vastgoed U.S.A.
Vitigudino B.V.
N.V. Balmore Vastgoed U.S.A.
Westward Capital II B.V.
ING Valores (Venezuela) C.A.
ING Vastgoed B B.V.
ING Real Estate (BHS) B.V.
ING Real Estate International Development B.V.
Holland Park Sp. Zoo
ING Real Estate Iberica SL
ING Real Estate International Development (Liege) B.V.
ING Real Estate Sp. Zoo
ING Real Estate Vasco Da Gama B.V.
London & Amsterdam Properties Ltd
London and Amsterdam Development Ltd.
London & Amsterdam Properties Ltd
MBO Camargo SA
Inmolor SA
MBO La Farga SA
Hospitalet Center, SL
MBO Morisson Ltd
Warsaw I B.V.
1300 Connecticut Avenue Joint Venture Ltd
ING Real Estate International Investment II B.V.
ING Real Estate International Investment III B.V.
ING Vastgoed Financiering N.V.
Bedrijfsgebouw MBO - Riho C.V.
Groeneveld MBO C.V.
M.B.O. Vastgoed Lease B.V.
Lindenburgh C.V.
Maria Hove C.V.
MBO Brova C.V.
MBO North America Finance B.V.
Residential Financial Development LLC
ING Vastgoed Fondsen B.V.
Winkelfonds Nederland Management B.V.
ING Vastgoed Ontwikkeling B.V.
Amsterdamse Poort Holding IV B.V.
Amsterdamse Poort IV B.V.
Grondpoort IV B.V.
Amsterdamse Poort II B.V.
BV Bedrijvenpark G.P.
CV Bedrijvenpark G.P.
Grondpoort II B.V.
Gulogulo B.V.
Antibes Holding B.V.
ING Vastgoed Arena B.V.
Muller Bouwparticipatie B.V.
V.O.F. Winkelcentrum Markt Noorderpromenade Drachten
MBO - Ruijters B.V.
Holding 'T Loon B.V.
Vastgoed 'T Loon B.V.
Wolfstreet Holding B.V.
Wolfstreet B.V.
Wolfstreet Grond B.V.
MBO Brinkstraat Holding B.V.
MBO Brinkstraat B.V.
MBO Brinkstraat Grond B.V.
MBO Catharijnesingel Holding B.V.
MBO Catharijnesingel B.V.
MBO Catharijnesingel Grond B.V.
MBO De Centrale Holding B.V.
MBO De Centrale B.V.
MBO De Centrale Grond B.V.
MBO Dommelstaete Holding B.V.
MBO Dommestaete B.V.
MBO Emmasingel Holding B.V.
MBO Emmasingel B.V.
MBO Emmasingel Grond B.V.
MBO Guyotplein Holding B.V.
MBO Guyotplein B.V.
MBO Guyotplein Grond B.V.
MBO Kousteensedijk Holding B.V.
MBO Kousteensedijk B.V.
MBO Kousteensedijk Grond B.V.
MBO Kruseman Van Eltenweg Holding B.V.
MBO Kruseman Van Eltenweg B.V.
MBO Kruseman Van Eltenweg Grond B.V.
MBO Marienburg B.V.
Marienburg V.O.F.
MBO Martinetsingel Holding B.V.
MBO Martinetsingel B.V.
MBO Martinetsingel Grond B.V.
MBO Oranjerie Holding B.V.
MBO Oranjerie B.V.
MBO Oranjerie Grond B.V.
MBO Pleintoren Holding b.V.
MBO Pleintoren BV
MBO Pleintoren Grond BV
MBO Via Catarina B.V.
Via Catarina "Empredimentos Imobiliarios" SA
MBO Walburg Holding B.V.
MBO Walburg B.V.
MBO Walburg Grond B.V.
MBO Willem II Singel Holding B.V.
MBO Willem II Singel B.V.
MBO Willem II Singel Grond B.V.
Q-Park Bovenmaas I B.V.
Q-Park N.V.
Q-Park Nederland B.V.
Q-Park Exploitatie B.V.
Q-Park De Bijenkorf B.V.
Q-Park Beheer B.V.
Q-Park Brabant B.V.
Q-Park Reserve I B.V.
Q-Park Byzantium B.V.
Q-Park City Holding B.V.
Q-Park City B.V.
Q-Park Schouwburg B.V.
Q-Park De Klomp B.V.
Q-Park Raadhuis B.V.
Q-Park Reserve II B.V.
Stadsherstel Historisch Rotterdam N.V.
Supermarkt Krouwel B.V.
V.O.F. Winkelcentrum Markt Noorderpromenade Drachten
Vastgoed De Brink Holding B.V.
Vastgoed De Brink B.V.
Wilhelminahof MBO B.V.
Zuidplein Beheer BV
ING Verwaltung (Deutschland) GMBH A.G.
Allgemeine Deutsche Direktbank AG
BNL Beteiligungsgeselschaft Neue Laender GMBH & Co. KG
Liquiditats-Konsortialbank GMBH
ING-North East Asia Bank
INIB N.V.
Locura Belegging B.V.
Luteola B.V.
Melifluo B.V.
Middenbank Curacao N.V.
Advisory Company Luxembourg
Altasec N.V.
Corporacion Financiera ING (Colombia) S.A.
Aralco N.V.
Atlas Venture Fund I, L.P.
Banco Latino-Americano De Exportaciones S.A.
Cayman Islands Funds N.V.
Corporacion Financiera ING (Colombia) S.A.
Datasegur S.R.L.
Fiseco N.V.
Granity Shipping N.V.
Institucion Financiera Externa Middenbank Curacao N.V. (Uruguay)
ING Bank (Chile) S.A.
Edibank S.A.
Sociedad Interbancaria De Depositor De Valores S.A.
ING Barings Ecuador Casa De Valores S.A.
ING Compania De Inversiones Y Servicios Limitada
Bolsa Electronica De Chile, Bolsa De Valores S.A.
CISL Aruba A.E.C.
ING Inversiones, Ltda.
Corporacion Financiera ING (Colombia) S.A.
ING Sociedad De Bolsa (Argentina), S.A.
Mercado De Valores De Buenos Aires S.A.
Kamadora Investments N.V.
Corporacion Financiera ING (Colombia) S.A.
Lerac Investment S.A.
Red Rose Investments N.V.
Unilarse
Zermatt N.V.
Miopia B.V.
Multiaccess B.V.
MKB Adviseurs B.V.
MKB Card B.V.
MKB Investments BV
De Springelberg B.V.
Het Dijkhuis B.V.
Palino B.V.
Tiberia B.V.
MKB Punt B.V.
Business Compass Holding B.V.
N.V. Instituut Voor Ziekenhuisfinanciering
Nationale-Nederlanden Financiele Diensten B.V.
B.V. Financieringsmaatschappij Vola
B.V. Kredietmaatschappij Vola
Dealer Cash Plan B.V.
Cash Plan B.V.
Finantel B.V.
Sentax Assurantie B.V.
G. J. Van Geet Beheer B.V.
Alegro Krediet B.V.
Gelderse Discount Maatschappij B.V.
Sentax Beheer B.V.
Finam Krediet B.V.
Sentax Lease B.V.
Vola Geldleningen B.V.
Nederlandse Bouwbank N.V.
Nederlandse Financieringsmaatschappij Voor Ontwikkelingslanden N.V.
Nedermex Limited N.V.
Netherlands Caribbean Bank N.V.
Nethworks Integrated Project Consultancy B.V.
Nofegol Beheer B.V.
NCM Holding N.V.
NMB Equity Participaitons N.V.
NMB-Heller Holding N.V.
Handlowy-Heller SA
Heller GMBH
Heller Bank A.G.
International Credit Service S.A.S.
Heller Finanz GMBH
Info-Und Beratungsunternehmen GMBH
NMB-Heller Ltd.
NMB-Heller N.V.
Agpo Participatiemaatschappij B.V.
Felix Tigris B.V.
Inter Credit B.V.
International Credit Service S.A.S.
International Credit Service S.A.S.
NMB-Heller Zweigniederlassung Neuss
Zamenbrink B.V.
Zamenterp B.V.
OB Heller AS
Okalia N.V.
Olivacea B.V.
Ontwikkelingsmaatschappij Noordrand B.V.
Orcinus B.V.
Oscar Smit's Bank N.V.
Bouwmaatschappij Mecklenburgplein B.V.
Kenau B.V.
P.T. ING Indonesia Bank
Parmola B.V.
Paronyme B.V.
Pendola B.V.
Perotis B.V.
Policy Extra Holdings Limited
Postbank N.V.
Amsterdam Exchanges N.V.
Interpartes Incasso B.V.
Postbank Aandelenfonds N.V.
Postbank Beleggingsfonds N.V.
Postbank Beleggingsfondsen Beheer B.V..
Postbank Beleggingsfondsen Bewaar B.V.
Postbank Chipper Beheer B.V.
Postbank Euro Aandelen Fonds N.V.
Postbank Groen N.V.
Postbank I.T. Fonds N.V.
Postbank Interfinance B.V.
Postbank Nederlandfonds N.V.
Postbank Obligatie Fonds N.V.
Postbank Obligatiefonds Beheer B.V.
Postbank Vastgoedfonds N.V.
Postbank Vermogensgroeifonds N.V.
Postbank Wereldmerkenfonds N.V.
Postkantoren B.V.
Prena Belegging B.V.
T Oye Deventer B.V.
A. Van Der Molen Herenmode B.V.
A. Van Der Pol Beleggingsmaatschappij Amsterdam B.V.
A. Van Venrooy Beleggingen B.V.
A. Van Weringh Beleggingen B.V.
A.C.M. Nienhuis Houdstermaatschappij B.V.
B.V. Raadgevend Bureau Nienhuis Consultans
A.H. Blok Holding B.V.
A.H.M. Habets Beheer B.V.
A.J. Vos Makelaardij Onroerende Goederen B.V.
Abades B.V.
Abrocoma B.V.
Ad Barnhard Holding B.V.
Albranis B.V.
Almenzor B.V.
Altimira B.V.
Ambito N.V.
Aralar B.V.
Atitlan B.V.
B.V. Beheersmaatschappij Nuyt En Heikens
B.V. Odripi
B.V. Varen ABC
B.V. Vulca Beleggingsmaatschappij
Barbatus B.V.
Barbuda B.V.
Bebida B.V.
Beheermaatschappij Van Der Reijnst B.V.
Beheermaatschappij Van Het Beleggingsfonds Van De 7 B.V.
Beheermaatschappij Darius B.V.
Beheermaatschappij Stouwe B.V.
Beheermaatschappij Van Putten B.V.
Beheersmaatschappij Elma Schrijen B.V.
Beheersmaatschappij K.G. Tjia B.V.
Beheersmaatschappij Luco Zuidlaren B.V.
Beheersmij A.J. Konst B.V.
Belagua B.V.
Bergara B.V.
Bermillio B.V.
Betulina B.V.
Bidasoa B.V.
Biporus B.V.
Blarina B.V.
Brasas B.V.
Bravura B.V.
Bremer-Van Mierlo Belegginsgmaatschappij B.V.
Bustia B.V.
C. J. Buyzen Beheer B.V.
C. J. H. - En J. J. Heimeriks Holding B.V.
Calando Belegging B.V.
Camilo B.V.
Castroverde B.V.
Catoneria B.V.
Cermanita B.V.
Cicania B.V.
Clacri B.V.
Colocar B.V.
OCB Beheer B.V.
Concolor B.V.
Cortada B.V.
Cotranco B.V.
Crescentes Prins B.V.
Cumbras B.V.
Cupula B.V.
D'Eijk B.V.
De Groninger Lederwaren Industrie B.V.
Delta Nederland Beheer B.V.
Dorsalis B.V.
Dr. De Grood Beheer B.V.
DKP Beheer B.V.
Dick Kooiman Publication/Productions B.V.
DSBV-Enserink B.V.
DSBV-Ploeger B.V.
E. Romar Beheer B.V.
Omnium B.V.
Empluma B.V.
Entorno B.V.
Epic Investments B.V.
Ernsatus B.V.
Esvice B.V.
Exel Beheer B.V.
Exploitatie En Beleggingsmaatschappij Alja Eindhoven B.V.
F. R. Hoffschlag Beleggingen B.V.
Familiale Investerings Maatschappij F.I.M.
Farlita B.V.
Flantua Beheer B.V.
Fregenda B.V.
Funjob Investments B.V.
G. Laterveer Beheer B.V.
Garlito B.V.
Gebrema Beheer B.V.
Gekrabeheer B.V.
Germs Beleggingen B.V.
Glabana B.V.
Golpejas B.V.
H. Van Duinen Beheer B.V.
H. Mekenkamp Holding B.V.
Mekenkamp Beheer B.V.
H. Weterings Holding B.V.
H. D. En L.B. Meijer Beheer B.V.
H. G. Van Der Most Beheer B.V.
Handelsonderneming E. Spee B.V.
Hepec Beheer B.V.
Hilschip BV
Hispidus B.V.
Hof En Frieling Beheer B.V.
Hof & Frieling Onroerend Goed B.V.
Holding Hoveling Beheer B.v.
Holding J.W.G. Huijbregts B.V.
Holding Schildersbedrijf West-Friesland B.V.
Holding Schuiling B.V.
Holding Th. A. Wellink B.V.
Hotel-Restaurant Boerhave B.V.
Huaco B.V.
Humada B.V.
Ignaro B.V.
Imbricata B.V.
Incoloro B.V.
Indonea B.V.
Allshoes Schoengroothandel B.V.
ING Bank Spaardividend Fonds Beheer B.V.
J & A Holding B.V.
J. B. Van Den Brink Beleggingsmaatschappij B.V.
J. G. Mekenkamp Holding B.V.
Mekenkamp Beheer B.V.
J. H. Moes Holding B.V.
J. P. Korenwinder Beheer B.V.
J. W. Th. M. Kohlen Beheer B.V.
Jemaas Beheer B.V.
Jongert Beheer B.V.
K & M Beheer B.V.
Kalliope B.V.
Bacolac B.V.
Kapellenberg B.V.
Kijkgroep B.V.
Koehorst Promotion Beheer B.V.
KBM Maarssen B.V.
L. Martens Beheer B.V.
La Douce Vie Network B.V.
Lagotis B.V.
Larino B.V.
Latourette B.V.
Leaver B.V.
Ledanca B.V.
Lektura Tiel Beheer B.V.
Licorera B.V.
Liecene B.V.
Lin Beheer B.V.
Lomajoma Holdings B.V.
Lorkendreef Beheer N.V.
Lustroso B.V.
M. B. Van Der Vlerk B.V.
Madrigal B.V.
Marres B.V.
Masegoso B.V.
Matthew Holding B.V.
Mazairac Belegging B.V.
Minnaar Holding B.V.
Mirabilis B.V.
Molenwiede B.V.
Muguet B.V.
Multicover B.V.
Pulido B.V.
Mustang B.V.
Olseria B.V.
Arend Broekhuis B.V.
P. Nienhuis Houdstermaatschappij
P. J. Heinrici Beheer B.V.
Pastrana B.V.
Pedralva B.V.
Pemac B.V.
Penuria B.V.
Perola Belegging B.V.
Pertusa B.V.
Peter Trompalphen Aan Den Rijn Beheer B.V.
Phobos Beleggingen
Pinicola B.V.
Pluijmen Holding B.V.
Portelas B.V.
Postigo B.V.
Prestamo B.V.
Pruis Elburg Beheer B.V.
Puebla B.V.
Pulido B.V.
Rayhold Management En Deelneming B.V.
Rescoldo B.V.
Ressel B.v.
Retrasos B.V.
Rodeba Deurne B.v.
Roelcene B.V.
Rowanda B.V.
Rudlolf & Peter Herenmode En Confectie B.V.
Sabra Holding B.V.
Valpacos B.V.
Sacobel Beheer B.V.
Schnieders Beheer B.V.
Simonis Beheer B.V.
Simonis Beleggingsmaatschappij B.V.
Sipororo B.V.
Spaleta B.V.
Spatgens Beheer B.V.
Stampida B.V.
Stamveld B.V.
Steendam Beleggingsmaatschappij Drachten B.V.
Storm Beheer B.V.
Beheermaatschappij Baarlo B.V.
Strokkur B.V.
Sunrise Investments B.V.
Sustento B.V.
Svalbard Beheer B.V.
T. A. Lie Beheer B.V.
T. M. D. Beheer B.V.
Beheermaatschappij Baarlo B.V.
Tadavia B.V.
Beleggings - En Beheer Maatschappij Solina B.V.
Refina B.V.
Talboom Beheer B.V.
Tapirus B.V.
Tarsius B.V.
Technisch Advies Bureau Jaba B.V.
Ter Linden En Heijer Holding B.V.
Tessara Zaanlandia B.V.
Thecoar B.V.
Theo Kentie Holding B.V.
Theo Kentie Design B.V.
Traslado B.V.
Trasgo B.V.
Treetop B.V.
Trituris B.V.
Truckstar Holding B.V.
Tucupido B.V.
Tricor B.V.
U. Ringsma Beheer B.V.
Unitres Holding B.V.
Vaanhold & Van Zon Holding B.V.
Van Den Heuvel Beheer B.V.
Van Loon Beheer B.V.
Van Roij Holding B.V.
Van Zwamen Holding B.V.
Vebe Olst B.V.
Vegem Beheer B.V.
Venidero B.V.
Vette Consultants B.V.
Vicar B.V.
Vidriales B.V.
W. Van Den Berg B.V.
W. N. Van Twist Holding B.V.
Wabemij B.V.
Wiancini B.V.
Rentista B.V.
Reoco Limited
Rutilus B.V.
RL & T (International) N.V.
Securo De Depositos S.A.
Siam City Asset Management Co., Ltd
Slivast B.V.
Societe Financiere Du Libans. A.L.
Society for Worldwide Interbank Financial Telecommunication S.C.
Stichting Administratiekantoor ING Bank Global Custody
Tablero B.V.
Tolinea B.V.
Tripudio B.V.
Tunnel Onder De Noord B.V.
C. V. Exploitatiemaatschappij Tunnel Onder De Noord
Unidanmark A/S
Verenigde Bankbedrijven N. V.
Westland Utrecht Hypotheekbank N.V.
Amstgeld Management AG
Amstgeld N.V.
Amstgeld Trust AG
Bouw En Exploitatiemaatschappij Deska XXIII B.V.
Charterhouse Vermogensbeheer B.V.
Hypothecair Belang Gaasperdam I N.V.
Assorti Beheer Amsterdam B.V.
Muidergracht Onroerend Goed B.V.
Amstel Gaasperdam B. V.
Bouw-, Exploitatie En Administratie Maatschappij Amer IV B.V.
N.V. Zeker Vast Gaasperdam
Rijn Gaasperdam B.V.
Juza Onroerend Goed B.V.
Hazo Immobilia B.V.
Kort Ambacht Maatschappij Tot Exploitatie Van Onroerende Goederen B.V.
Utrechtse Financierings Bank N.V.
Utrechtse Hypotheekbank N.V.
Algemeene Waarborgmaatschappij N.V.
Hypotheekbank Voor Nederland II N.V.
Hypotheekbank Voor Nederland N.V.
Standard Hypotheekbank N.V.
ING Bank Hypotheken N.V.
Nationale Hypotheekbank N.V.
Hollandsche Hypotheekbank N.V.
Zuid Nederlandsche Hypotheekbank N.V.
Vermogensplanning N.B.I. B.V.
W.U.H. Finanz A.G.
Westland/Utrecht Leasing B.V.
Berchem Onroerend Goed B.V.
Berkelse Poort B.V.
Beuke Poort B.V.
Brasemer Poort B.V.
Bruine Poort B.V.
Denne Poort B.V.
Doetichem Immobilia B.V.
Dommelse Poort B.V.
Drechtse Poort B.V.
Eike Poort B.V.
Esse Poort B.V.
Frabu Immobilia B.V.
Friese Poort B.V.
Gelderse Poort B.V.
Gele Poort B.V.
Grijze Poort B.V.
Groninger Poort B.V.
Helo Immobilia B.V.
Holendrecht Gemeenschappelijk Beheer B.V.
Holendrecht Parking B.V.
Hollandse Poort B.V.
Iepe Poort B.V.
Kager Poort B.V.
Kilse Poort B.V.
Lekse Poort B.V.
Limburgse Waterpoort B.V.
Lingese Poort B.V.
Markse Poort B.V.
Oranje Poort B.V.
Paarse Poort B.V.
Reggese Poort B.V.
Roerse Poort B.V.
Schepa Immobilia B.V.
Sparre Poort B.V.
Spoolde B.V.
Spuise Poort B.V.
Thames Poort B.V.
Utrechtse Poort B.V.
Vechtse Poort B.V.
Vliestse Poort B.V.
Westland/Utrecht Bouwonderneming Wubo VI B.V.
Westland/Utrecht Bouwonderonderneming Wubo IV B.V.
Wilge Poort B.V.
Zeeuwse Poort B.V.
Westland/Utrecht Verzekeringen B.V.
Westlandsche Hypotheekbank N.V.
Algemeene Hypotheekbank N.V.
Hypotheekbank Maatschappij Voor Hypothecaire Crediet N.V.
Groningsche Hypotheekbank N.V.
Vaderlandsche Hypotheekbank N.V.
Zeeuwsche Hypotheekbank N.V.
Zuid-Hollandsche Hypotheekbank N.V.
Zugut B.V.
ING Verzekeringen N.V.
ING Insurance International B.V.
Nationale-Nederlanden Intervest II B.V.
ING North America Real Estate Holdings Inc.
ING Financial Services International (Asia) Ltd.
Nationale-Nederlanden Intervest XIII B.V.
Nationale-Nederlanden Intertrust B.V.
N.N. US Realty Corp
B.V. Nederlandsche Flatbouwmaatschappij
NN Korea
ING Continental Europe Holdings B.V.
De Vaderlandsche N.V.
Nationale Omnium N.V.
De Vaderlandsche Spaarbank N.V.
RVS Financial Services N.V.
Fiducre N.V.
Sodefina S.A.
SA De Vaderlandsche Luxemburg
Immo "De Hertoghe" NV
Westland/Utrecht Hypotheekmaatschappij N.V.
Intermediair Services N.V.
RVS Verzekeringen N.V.
Gefinac N.V.
Proodos General Insurances S.A.
NN Mutual Fund Management Co.
The Seven Provinces International B.V.
Nationale-Nederlanden Magyarorszagi Biztosito Rt
NN Mutual Fund Services and Consulting Ltd.
ING Management Services s.r.o.
Prumy Penzijni fond a.s.
Nationale-Nederlanden Polska S.A.
Nationale-Nederlanden Poist'ovna S.A.
ING Management Services Slovensko spol s.r.o.
Nationale-Nederlanden Agencia de Valores S.A.
NN Romania Asigurari de Viata S.A.
Sviluppo Finanziaria
ING Investment Management Italy
NN Vida Compania de Seguros y Raeseguros S.A.
NN Generales Compania e Seguros y Raeseguros
Nationale-Nederlanden Pojistovna
ING Latin American Holdings
ING Insurance Chile Holdings Limitada
ING Seguros de Vida S.A.
NNOFIC
Nationale-Nederlanden (UK) Ltd.
NN (UK General) Ltd.
The Orion Insurance
ING Australia Limited
Mercantile Mutual Holdings Ltd.
Mercantile Mutual Funds Management
Mercantile Mutual Global Ltd.
Athelas
Mercantile Mutual Insurance (Australia) Ltd.
M.A.F.G. Ltd.
Mercantile Equities Ltd.
Greater Pacific (Leasing) Ltd.
Amfas Australia Pty Ltd.
Australian General Insurance Co. Ltd.
"The Seven Provinces" Insurance Underwriters
MM Investment Management Ltd.
The Mercantile Mutual Life Insurance Co. Ltd.
MML Properties Pty Ltd.
Mercantile Mutual Deposits Ltd.
Union Investment Co. Ltd.
Mercantile Mutual Securities Ltd.
Tazak Pty Ltd.
Mercantile Mutual Custodians Pty. Ltd.
Mercantile Mutual Casualty Insurance Ltd.
Australian Brokers Holdings Ltd.
Australian Brokers Ltd.
Australian Community Insurance Ltd.
Mercantile Mutual Insurance (Workers Compensation) Ltd.
Mercantile Mutual Insurance (N.S.W. Workers Compensation) Ltd.
Prosafe Investments Ltd.
Dinafore Pty Ltd.
Tongkang Pty Ltd.
MM Investment Management
ING Canada Holdings Inc.
AFP Financial Services
ING Canada Inc.
The Halifax Insurance Company
Western Union Insurance Company
Wellington Insurance Company
La Compagnie d'Assurances Belair
The Commerce Group Insurance La Compagnie d'Assurances
NN Life Insurance Company of Canada
NN Funds Limited
NN Capital Management
NN Maple Leaf
ING America Insurance Holdings Inc.
Equitable of Iowa Companies
Directed Services, Inc.
Equitable Investment Services, Inc.
Equitable Life Insurance Company of Iowa
Equitable American Insurance Company
Equitable Creative Services, Ltd.
Equitable Companies
CLC, Ltd.
Equitable American Marketing Services, Inc.
Equitable Marketing Services, Inc.
Younkers Insurance & Investments, Ltd.
USG Annuity & Life Company
USGL Service Corporation
Equitable of Iowa Companies Capital Trust
Equitable of Iowa Companies Capital Trust II
Equitable of Iowa Securities Network, Inc.
Golden American Life Insurance Company
First Golden American Life Insurance Company of New York
Locust Street Securities, Inc.
IFG Network Securities
Shiloh Farming Company
Tower Locust, Ltd.
ING America Life Corporation
Georgia US Capital Inc.
Life Insurance Company of Georgia
Springstreet Associates, Inc.
Southland Life Insurance Co.
Security Life of Denver Insurance Company
First ING Life of New York
First Secured Mortgage Deposit Corp.
ING American Equities, Inc.
Midwestern United Life Insurance Company
Wilderness Associates
Afore Bital ING, S.A. de C.V.
Columbine Life Insurance Co.
ING Fund Services Co., Inc.
ING Investment Management, Inc.
ING Investment Management LLC
ING Mutual Funds Management LLC
ING Funds Distributor Inc.
ING Funds Services LLC
ING North America Insurance Corporation
ING Seguros Sociedad Anonima de Capital Variable
Lion Custom Investments Inc.
Lion Custom Investments II Inc.
MIA Office Americas, Inc.
Multi-Financial Group, Inc.
Multi-Financial Securities Corporation
Multi-Financial Securities Corporation Massachusetts
Multi-Financial Securities Corporation of Ohio
Multi-Financial Securities Corporation of Texas
Orange Investment Enterprises Inc.
Security Life Assignment Corp.
ING Seguros S.A. de C.V.
United Protective Company
Security Life of Denver International Ltd.
SLR Management (Bermuda) Ltd.
VESTAX Capital Corporation, Inc.
VESTAX Securities Corp.
VTX Agency Inc.
PMG Agency, Inc.
VTX Agency of Michigan, Inc.
ING US P&C Corporation
Diversified Settlements, Inc.
Peerless Insurance Company
The Netherlands Insurance Company
America First Insurance Company
Alabama First Insurance Company
Excelsior Insurance Company
Indiana Insurance
Consolidated Insurance Company
Cooling-Grumme-Mumford Company, Inc.
Blue Cross Medical Consultancy (Singapore) Pte. Ltd.
ING Indonesia Insurance P.T.
ING Life Insurance Japan
Nederlandse Reassurantie Groep Holding N.V.
Nederlandse Reassurantie Groep N.V.
NRG London Levensherverzekering
Algemene Levensherverzekering Maatschappij N.V.
Vereenigde Assurantie Bedrijven "Nederland" N.V.
Reassurantie Holding Nederland N.V.
Internationale Reassurantie Maatschappij Nederland N.V.
Reassurantie Maatschappij Nederland N.V.
Ruckversicherungs-Clearing A.G.
Reinsurers Marketing B.V.
N.V. Beleggingsmaatschappij NRG
Reassurantie Beleggingen N.V.
NRG Woningbouw B.V.
BMA Beleggingsmaatschappij "Alliance" B.V.
"Traviata" Onroerend Goed B.V.
The Victory Reinsurance Corporation of the Netherlands N.V.
NRG Victory Holdings Ltd.
NRG London Reinsurance Company Ltd.
NRG Fenchurch Insurance Company Ltd.
NRG Victory Australia Holdings Ltd.
NRG Victory Australia Ltd.
NRG Victory Reinsurance Corporation Ltd.
The Victory Health Reinsurance Corporation Ltd.
NRG Victory Management Ltd.
European Life Marketing & Actuarial Consultancy Ltd.
European Life Marketing & Actuarial Consultancy 92 Ltd.
Medical Expenses Development and Insurance Consultancy Services Ltd.
NRG Victory Management Services Ltd.
General Reinsurance Syndicate Ltd.
General Reinsurance Syndicate Ltd. (Trustee)
London Reinsurance Comp. Ltd.
NRG Victory Life and Health Services Ltd.
NRG Victory Canada Management Ltd.
NRG Victory Management (Hong Kong) Ltd.
NRG America Holding Company
Philadelphia Reinsurance Corporation
NRG America Life Reassurance Corporation
NRG American Management Corporation
Market Run Off Services Ltd.
NRG Antillean Holding N.V.
NRG Antillean Reinsurance Company N.V.
NRG Victory International Ltd.
NRG Victory Management (Bermuda) Ltd.
SRO Run-Off Ltd. Bermuda
ING Life Insurance Co. (Phillippines)
ING Penta Life Insurance Indonesia P.T.
ING Insurance Consultants (HK) Ltd.
ING Reinsurance International Holding Co. Ltd.
ING Reinsurance International
Nationale-Nederlanden Nederland B.V.
Nationale-Nederlanden Schadeverzekering Maatschappij N.V.
H. van Veeren B.V.
Nationale-Nederlanden Greek General Insurance Company S.A.
Nationale-Nederlanden Levensverzekering Maatschappij N.V.
B.V. Beleggingsmaatschappij Berendaal
Consortium Scheveninggen B.V.
RVS Beroeps-en Bedrijfsfinanciering B.V.
De Bossche Poort B.V.
ING Vastgoed V B.V.
ING Vastgoed Belegging B.V.
B.V. Beleggingsmaatschappij Vinkendaal
Muggenburg Beheer B.V.
Muggenburg C.V.
ING REI Investment U.K. B.V.
Nationale-Nederlanden Real Estate Ltd.
ING Vastgoed Beheer Maatschappij I B.V.
ING Vastgoed Bewaar Maatschappij I B.V.
Nationale-Nederlanden Intervest 52 B.V.
Bouwfonds Nationale-Nederlanden B.V.
Nationale-Nederlanden Bouwfonds 1975 B.V.
Bouwfonds AVG B.V.
Bouwfonds Nemavo B.V.
Bouwfonds Anklaar-Apeldoorn 1967 B.V.
Bouwfonds Bilthoven 1969 B.V.
Bouwfonds Roveso B.V.
RVS Bouwfonds B.V.
Bouwfonds Utrecht 1967 B.V.
Amersfoort Premiewoningen B.V.
Bouwfonds Valken Staete B.V.
Nationale-Nederlanden Bouwfonds 1976 B.V.
ING Real Estate International Investment I B.V.
ING REI Investment U.K. B.V.
ING Vastgoed Fondsbelegging BV
Jetta Vastgoed B.V.
B.V. Algemene Beleggingsmaatschappij "Lapeg"
ING Insurance Argentina
Nationale-Nederlanden Greek Life Insurance Company S.A.
RVS Levensverzekering N.V.
RVS Schadeverzekering N.V.
Tiel Utrecht Levensverzekering N.V.
Tiel Utrecht Schadeverzekering N.V.
Utrechtsche Algemeene Brandverzekering Maatschappij N.V.
Assurantiekantoor A Brugmans B.V.
Algemene Zeeuwse Verzekering Maatschappij N.V.
Apollonia Levensverzekering N.V.
N.V. Nationale Borg-Maatschappij
N.V. Belegging- en Beheer Maatschappij Keizersgracht
Antilliaanse Borg-Maatschappij N.V.
Amfas Exploitatie Maatschappij B.V.
AVG Exploitatie en Beheer B.V.
Amfas Hypotheken N.V.
Noordwester Hypotheken N.V.
Amfinex II B.V.
Westermij B.V.
Amfico B.V.
AVG Exploitatie I B.V.
ING Bewaar Maatschappij IV B.V.
S.C.P. AVG Investissement
Assurantiemaatschappij "De Zeven Provincien" N.V.
"Transatlantica" Herverzekering Maatschappij N.V.
"The Seven Provinces" Insurance Underwriters Ltd.
Ramus Insurance Ltd.
Tiel Utrecht Verzekerd Sparen N.V.
B.V. Algemene Beleggings Maatschappij Reigerdaal
Oostermij B.V.
Nationale-Nederlanden Pensioendiensten B.V.
Nationale-Nederlanden Zorgvezekering N.V.
B.V. Algemene Beleggingsmaatschappij "Kievietsdaal"
NeSBIC-Postbank B.V.
Nitido B.V.
Podocarpus Beheer B.V.
Parcom Ventures B.V.
Parcom Beheer BV
Parcom CV
Parcom Services BV
Postbank Schadeverzekering N.V.
Maatschappij tot Exploitatie van Onroerende Goederen "Gevers Deynootplein" BV
Maatschappij tot Exploitatie van Onroerende Goederen "Kurhaus" B.V.
Postbank Levensverzekering N.V.
RVS Beleggingen N.V.
Netherlands Life Insurance Company Ltd.
AO Artsen-Verzekeringen N.V.
Grabenstrasse Staete B.V.
ING Life Insurance International N.V.
Nationale-Nederlanden Internationale Schadeverzekering N.V.
Fatum Vermogensbeheer
N.V. Surinaamse Verzekeringsagenturen Maatschappij
Seguros Norman Moron N.V.
N.V. Arubaanse Verzekeringsagenturen Maatschappij
Nationale-Nederlanden Herverzekering Maatschappij N.V.
AVG Exploitatie IX B.V.
Jahnstrasze Gebaude B.V.
Maatschappij tot Exploitatie van Onroerende Goederen "Palace" B.V.
Nationale-Nederlanden Interfinance B.V.
Maatschappij tot Exploitatie van Onroerende Goederen "Grand Hotel" B.V.
N.V. Haagsche Herverzekering Maatschappij van 1836
Baring Central European Investments B.V.
Baring Asian Flagship Investments B.V.
ING Fund Management B.V.
Wijkertunnel Beheer I B.V.
Nationale-Nederlanden Beleggingsrekening N.V.
Nationale-Nederlanden CSFR Real Estate v.o.s.
ING Bewaar Maattschappij I B.V
ING Vastgoed B.V.
ING Real Estate (Asia) PTE Ltd.
ING Real Estate North America Corporation
Nationale-Nederlanden Intervest XII B.V.
B.V. Algemene Beleggingsmaatschappij Van Markenlaan
Kantoorgebouw Johan de Wittlaan B.V.
Nationale-Nederlanden Holdinvest B.V.
Nationale-Nederlanden International Investment Advisors B.V.
B.V. Algemene Beleggingsmaatschappij Fazantendaal
Maatschappij Stadhouderslaan B.V.
DESKA LII B.V.
J.H. Alta en Co. B.V.
Westland/Utrecht Projektontwikkeling B.V.
Bouwonderneming Amer LII B.V.
ING Real Estate Colombo B.V.
Loeffpleingarage B.V.
B.V. Maatschappij tot Exploitatie van Onroerende Goederen Smeetsland
B.V. Vastgoedmaatschappij "Combuta"
B.V. Vastgoed Maatschappij "Promes"
Beheer- en Exploitatiemaatschappij "De Vestingwachter" B.V.
Nationale-Nederlanden Hypotheekbank N.V.
N.V. Arnhemsche Hypotheekbank voor Nederland
Nationale-Nederlanden Financiering Maatschappij B.V.
B.V. Betaalzegelbedrijf "De Voorzorg" J. van Ouwel
Nationale-Nederlanden Finance Corporation (Curacao) I.L.
Nationale-Nederlanden Vermogensbeheer B.V.
NeSBIC Nationale-Nederlanden B.V.
BOZ B.V.
ABV Staete B.V.
B.V. "De Administratie" Maatschappij tot Exploitatie van Onroerende Goederen
Amersfoort-Staete B.V.
Arnhem Staete B.V.
Belart Staete B.V.
Belart S.A.
N.V. Square Montgomery
Steenstaete S.A.
Berkel-Staete I B.V.
Berkel-Staete II B.V.
Blijenhoek Staete B.V.
S.N.C. Blijenhoek Staete et Cie
SNC Peau Bearn
Brussel Staete B.V.
Grote Markt Staete B.V.
Hoogoorddreef I B.V.
SNC Haven
Trompenburg Parking B.V.
Lena Vastgoed B.V.
S.A. du 59 Avenue d'lena
SNC le Murier
Kleber Vastgoed B.V.
S.A. du 42 Avenue Kleber
B.V. De Oude Aa-Stroom
Portefeuille Staete B.V.
S.C.I. 1e Portefeuille
S.C.I. le Michelet
S.C.I. Roissy Bureaux International
S.C.I. Square d'Asnieres
SNC Le Dome
B.V. Amiloh
ING Vastgoed N.V.
Immo Management Service S.A.
S.A. Regent-Bruxelles
Nationale-Nederlanden/Immobilier S.A.R.L.
Immogerance S.A.R.L.
Nationale-Nederlanden Intervest IV B.V.
SAS Espace Daumesnil
Nationale-Nederlanden V B.V.
Nationale-Nederlanden VII B.V.
ING Real Estate Espace Daumesnil B.V.
ING Real Estate Parking Daumesnil Viaduc B.V.
SAS Parking Daumesnil Viaduc
Cadran Invest S.A.
ING Bewaar Maatschappij II B.V.
ING Bewaar Maatschappij III B.V.
ING REI Investment Spain B.V.
ING Inmeubles S.A.
ING Bewaar Maatschappij V B.V.
ING Asset Management B.V.
Postbank Verzekeringen Beheer Maatschappij B.V.
Postbank Verzekeringen Bewaar Maatschappij B.V.
ING Vastergoed B.V.
Nationale-Nederlanden Intervest IX B.V.
Nationale-Nederlanden CSFR Intervest S.R.O.
ING Real Estate Praha Housing a.s.
Nationale-Nederlanden Praha Real Estate V.O.S.
Nationale-Nederlanden Intervest XI B.V.
Nationale-Nederlanden Hungary Real Estate KFT
ING Investment Management (Hungary) Rt.
ING Investment Management (Asia Pacific) Limited
ING Investment Management (Czech Republic) S.A.
IIM India (India) Private Ltd.
