<PAGE> 1
File No. 33-81784
811-8642
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 2 /X/
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 2 /X/
--------------
(Exact Name of Registrant)
OHIO NATIONAL VARIABLE ACCOUNT D
(Name of Depositor)
THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Address of Depositor's Principal Executive Offices)
237 William Howard Taft Road
Cincinnati, Ohio 45219
(Depositor's Telephone Number)
(513) 861-3600
--------------
(Name and Address of Agent for Service)
Ronald L. Benedict, Second Vice President and Counsel
The Ohio National Life Insurance Company
P.O. Box 237
Cincinnati, Ohio 45201
Notice to:
W. Randolph Thompson, Esq.
Of Counsel
Jones & Blouch L.L.P.
Suite 405 West
1025 Thomas Jefferson Street, N.W.
Washington, D.C. 20007
Approximate Date of Proposed Public Offering: As soon after the effective date
of this amendment as is practicable.
Registrant has heretofore registered an indefinite amount of securities under
the Securities Act of 1933 pursuant to Rule 24f-2 and on February 23, 1996 filed
its Rule 24f-2 Notice for its most recent fiscal year.
It is proposed that this filing will become effective (check appropriate space):
immediately upon filing pursuant to paragraph (b)
---
on (date) pursuant to paragraph (b)
---
60 days after filing pursuant to paragraph (a)(i)
---
X on May 1, 1996, pursuant to paragraph (a)(i)
---
75 days after filing pursuant to paragraph (a)(ii)
---
on (date) pursuant to paragraph (a)(ii) of Rule 485.
---
If appropriate, check the following box:
this post-effective amendment designates a new effective date for a
--- previously filed post-effective amendment.
<PAGE> 2
OHIO NATIONAL VARIABLE ACCOUNT D
<TABLE>
<CAPTION>
N-4 Item Caption in Prospectus
- -------- ---------------------
<S> <C>
1 Cover Page
2 Glossary of Special Terms
3 Not applicable
4 Not applicable
5 The Ohio National Companies
6 Deductions and Expenses
7 Description of the Contracts
8 Annuity Benefits
9 Death Benefit
10 Accumulation
11 Surrender and Withdrawal
12 Federal Tax Status
13 Not applicable
14 Table of Contents
Caption in Statement of Additional Information
----------------------------------------------
15 Cover Page
16 Table of Contents
17 Not applicable
18 Custodian
Independent Certified Public Accountants
19 See Prospectus (Distribution of the Contracts)
20 Underwriter
21 Calculation of Money Market Subaccount Yield
Total Return
22 See Prospectus (Annuity Benefits)
23 Financial Statements
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
<S> <C>
Caption in Part C
-----------------
24 Financial Statements and Exhibits
25 Directors and Officers of the Depositor
26 Persons Controlled by or Under Common Control with the
Depositor or Registrant
27 Number of Contractowners
28 Indemnification
29 Principal Underwriter
30 Location of Accounts and Records
31 Not applicable
32 Undertakings
</TABLE>
<PAGE> 4
PART A
PROSPECTUS
<PAGE> 5
PROSPECTUS
OHIO NATIONAL VARIABLE ACCOUNT D
OF
THE OHIO NATIONAL LIFE INSURANCE COMPANY
237 WILLIAM HOWARD TAFT ROAD
CINCINNATI, OHIO 45219
TELEPHONE (513) 559-6514
FOR
TAX QUALIFIED GROUP VARIABLE ANNUITY CONTRACTS
This prospectus offers a multiple funded group variable annuity contract,
designed for tax qualified retirement plans, that provides for the accumulation
of values and the payment of annuity benefits on a variable and/or fixed basis.
Unless specifically stated otherwise, only provisions relating to the variable
portion of the contracts are described in this prospectus. The fixed portion
("Fixed Accumulation Account") is briefly described in an appendix to this
prospectus.
Variable annuities are designed to provide lifetime annuity payments
which will vary with the investment results of the investment vehicle chosen.
The contract value and the value of each participant's variable accumulation
account will vary with the investment performance of Ohio National Fund, Inc.
(the "Fund"), and the amount of each participant's annuity payments will vary
with the Fund's investment performance subsequent to the commencement of annuity
payments. There can be no assurance that account values prior to the purchase of
an annuity or the aggregate amount of annuity payments received after such date
will equal or exceed the contributions made therefor.
The contracts offered by this prospectus are designed for (1) annuity purchase
plans adopted by public school systems and certain tax-exempt organizations
described in Section 501(c)(3) of the Internal Revenue Code (the "Code"),
qualifying for tax-deferred treatment pursuant to Section 403(b) of the Code,
(2) other employee pension or profit-sharing trusts or plans qualifying for
tax-deferred treatment under Section 401(a), 401(k) or 403(a) of the Code, and
(3) state and municipal deferred compensation plans.
The minimum contribution amount is $25 per participant. Additional contributions
may be made at any time, but not more often than biweekly. Generally, maximum
contributions equal the maximums permitted under the plan.
Contributions are allocated to one or more subaccounts of Ohio National Variable
Account D ("VAD") in such portion as the contract owner may choose. VAD is a
separate account established by The Ohio National Life Insurance Company ("Ohio
National Life"). The assets of VAD are invested in shares of the Fund, a mutual
fund having nine investment portfolios: Equity Portfolio, Money Market
Portfolio, Bond Portfolio, Omni Portfolio, International Portfolio, Capital
Appreciation Portfolio, Small Cap Portfolio, Global Contrarian Portfolio and
Aggressive Growth Portfolio (see the accompanying prospectus of the Fund).
All or part of the contract value may be withdrawn for purposes of paying
benefits provided by the plan at no charge. Amounts withdrawn for any other
reason may be subject to federal income tax penalties, and a withdrawal charge
may be assessed up to 7% of the amount withdrawn (up to a maximum of 9% of all
contributions). Exercise of contract rights may be subject to the terms of the
qualified employee trust or annuity plan under which a contract is purchased.
This prospectus contains no information concerning such trusts or plans.
THIS PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE. IT SETS FORTH THE
INFORMATION ABOUT VAD AND THE VARIABLE ANNUITY CONTRACTS OFFERED BY THIS
PROSPECTUS THAT YOU SHOULD KNOW BEFORE INVESTING. ADDITIONAL INFORMATION ABOUT
VAD HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN A STATEMENT OF
ADDITIONAL INFORMATION DATED MAY 1, 1996. THE STATEMENT OF ADDITIONAL
INFORMATION IS INCORPORATED HEREIN BY REFERENCE AND IS AVAILABLE UPON REQUEST
AND WITHOUT CHARGE BY WRITING OR CALLING OHIO NATIONAL LIFE AT THE ABOVE
ADDRESS. THE TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION IS ON
PAGE 2.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS SHOULD BE ACCOMPANIED BY THE CURRENT PROSPECTUS OF OHIO NATIONAL
FUND, INC.
MAY 1, 1996
<PAGE> 6
TABLE OF CONTENTS
<TABLE>
<S> <C>
Fee Table ............................................................. 3
Accumulation Unit Values .............................................. 4
Financial Statements ............................................... 4
The Ohio National Companies ........................................... 5
Ohio National Life ................................................. 5
Ohio National Variable Account D ................................... 5
Ohio National Fund, Inc. ........................................... 5
Distribution of the Contracts ......................................... 6
Deductions and Expenses ............................................... 6
Withdrawal Charge .................................................. 6
Deduction For Administrative Expenses .............................. 7
Deduction For Risk Undertakings .................................... 7
Limitations On Deductions .......................................... 7
Transfer Fee ....................................................... 7
Deduction For State Premium Tax .................................... 7
Fund Expenses ...................................................... 7
Description of the Contracts .......................................... 8
Accumulation ....................................................... 8
Annuity Benefits ................................................... 10
Other Contract Provisions .......................................... 12
Performance Data ................................................... 12
Federal Tax Status .................................................... 13
Appendix: Fixed Accumulation Account .................................. 15
</TABLE>
STATEMENT OF ADDITIONAL INFORMATION
Custodian
Independent Certified Public Accountants
Underwriter
Calculation of Money Market Subaccount Yield
Transfer Limitations
Total Return
Financial Statements for VAD and Ohio National Life
GLOSSARY OF SPECIAL TERMS
Accumulation Unit -A unit of measure used to determine the contract values.
Annuitant -Any natural person who is to receive or is receiving annuity payments
and upon whose continuation of life annuity payments with life
contingencies depend.
Annuity Payments -Periodic payments made to an annuitant pursuant to an annuity
purchased with contract values.
Annuity Purchase -The application of a participant's account values to purchase
an annuity under the contract's retirement income provisions.
Annuity Unit -A unit of measure used to determine the second and subsequent
variable annuity payments and reflecting the investment performance of the
Fund.
Contributions -The amount of payments made by the owner, on behalf of
participants, under the contract.
Fund Shares -Shares of Ohio National Fund, Inc., or shares of another registered
open-end investment company substituted therefor.
Owner -The contract holder.
Participant -An individual participating in the benefits of the plan for which
the contract is purchased.
Participant Account -The account established under the contract on behalf of
each participant.
Subaccount -The Equity subaccount, Money Market subaccount, Bond subaccount,
Omni subaccount, International subaccount, Capital Appreciation subaccount,
Small Cap subaccount, Global Contrarian subaccount, Aggressive Growth
subaccount, or such other subaccounts as may be established under VAD.
Valuation Period -The period of time from one determination of accumulation unit
and annuity unit values to their next determination. Such determination is
made at the same time that the net asset value of Fund Shares is
determined. See page 17 of the accompanying Fund prospectus.
1940 Act -The Investment Company Act of 1940, as amended, or any similar
successor federal legislation.
2
<PAGE> 7
FEE TABLE
<TABLE>
<CAPTION>
CONTRACTOWNER TRANSACTION EXPENSES
Deferred Sales Load (as a percentage CONTRACT YEAR
of amount withdrawn) (Percentage OF SURRENDER PERCENTAGE
varies by number of years from the OR WITHDRAWAL CHARGED
------------- ----------
<S> <C> <C>
establishment of each participant's account.) 1 7%
(No charge for withdrawals for plan payments.) 2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
8 and later 0%
Exchange (transfer) Fee $3 (currently no charge for the first 4 transfers per year)
</TABLE>
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL SMALL
EQUITY MARKET BOND OMNI NATIONAL APPRECIATION CAP
------ ------ ---- ---- -------- ------------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
VADANNUAL EXPENSES (as a percentage
of average account value)
Mortality and Expense Risk Fees 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Account Fees and Expenses 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
----- ----- ----- ----- ----- ----- -----
Total VAD Annual Expenses 1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35%
FUND ANNUAL EXPENSES (as a percentage
of the Fund's average net assets)
Management Fees 0.54% 0.25%* 0.60% 0.57% 0.90% 0.80% 0.80%
Other Expenses 0.19% 0.19% 0.15% 0.18% 0.22% 0.16% 0.16%
----- ----- ----- ----- ----- ----- -----
Total Fund Annual Expenses 0.73% 0.44%* 0.75% 0.75% 1.12% 0.96% 0.96%
EXAMPLE
If you surrendered your 1 Year $ 93 $ 90* $ 93 $ 93 $ 97 $ 95 $ 95
contract at the end of the
applicable time period, you 3 Years 120 111* 120 120 131 126 126
would pay the following
aggregate expenses on a $1,000 5 Years 147 132 147 147 166 158 158
investment, assuming 5%
annual return: 10 Year 241 211* 243 243 281 265 265
EXAMPLE
If you do not surrender your 1 Year 21 18* 21 21 25 23 23
contract or you annuitize at
the end of the applicable 3 Years 65 56* 66 66 77 72 72
time period, you would
pay the following 5 Years 112 97* 113 113 132 124 124
aggregate expenses
on the same investment: 10 Years 241 211* 243 243 281 265 265
<CAPTION>
GLOBAL AGGRESSIVE
CONTRARIAN GROWTH
---------- ----------
<S> <C> <C> <C>
VADANNUAL EXPENSES (as a percentage
of average account value)
Mortality and Expense Risk Fees 1.00% 1.00%
Account Fees and Expenses 0.35% 0.35%
----- -----
Total VAD Annual Expenses 1.35% 1.35%
FUND ANNUAL EXPENSES (as a percentage
of the Fund's average net assets)
Management Fees 0.90% 0.80%
Other Expenses 0.68% 0.22%
----- -----
Total Fund Annual Expenses 1.58% 1.02%
EXAMPLE
If you surrendered your 1 Year $ 101 $ 96
contract at the end of the
applicable time period, you 3 Years 144 128
would pay the following
aggregate expenses on a $1,000 5 Years 188 161
investment, assuming 5%
annual return: 10 Year 325 271
EXAMPLE
If you do not surrender your 1 Year 30 24
contract or you annuitize at
the end of the applicable 3 Years 91 74
time period, you would
pay the following 5 Years 154 127
aggregate expenses
on the same investment: 10 Years 325 271
</TABLE>
The purpose of the above table is to help you to understand the costs and
expenses that a variable annuity contractowner will bear directly or indirectly.
THE EXAMPLE INCLUDED IN THE ABOVE TABLE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSE, AND ACTUAL EXPENSES MAY BE GREATER OR
LESS THAN THOSE SHOWN. Note that the expense amounts shown in the example are
aggregate amounts for the total number of years indicated. Neither the table nor
the example reflect any premium taxes that may be applicable to a contract,
which currently range from 0% to 2.25%. The above table and example reflect only
the charges for contracts currently offered by this prospectus and not other
contracts that may be offered by Ohio National Life. For further details, see
Deductions and Expenses, page 6.
* For the Money Market Porfolio, management fees in excess of 0.25% are
presently being waived by the Fund's investment adviser. Without the waiver, the
Money Market Portfolio's Management Fee would be 0.30%, its Total Fund Annual
Expenses would be 0.49%, and its expenses would total $91 for a $1,000 contract
surrendered at the end of 1 year, $113 if surrendered at the end of 3 years,
$135 if surrendered at the end of 5 years or $216 if surrendered at the end of
10 years. For a $1,000 contract annuitized or not surrendered, the expenses
without the waiver would be $19 for 1 year, $58 for 3 years, $100 for 5 years or
$216 for 10 years.
3
<PAGE> 8
ACCUMULATION UNIT VALUES
EQUITY SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $12.198167 13,287
</TABLE>
MONEY MARKET SUBACCOUNT**
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $10.346422 1,732
</TABLE>
BOND SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $11,207694 1,139
</TABLE>
OMNI SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $11,742940 13,547
</TABLE>
INTERNATIONAL SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $11,256284 20,393
</TABLE>
CAPITAL APPRECIATION SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $11.663489 39,782
</TABLE>
SMALL CAP SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $12.909669 24,533
</TABLE>
GLOBAL CONTRARIAN SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $10.780072 8,523
</TABLE>
AGGRESSIVE GROWTH SUBACCOUNT
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C>
1995* $10.000000 $12.568155 3,057
</TABLE>
* Series of variable annuity contracts commenced on January 25, 1995. Global
Contrarian and Aggressive Growth subaccounts commenced on October 2, 1995.
** The curent annualized yield for the Money Market subaccount for the seven
days ended December 31, 1995, was 4.08%.
FINANCIAL STATEMENTS
The complete financial statements of VAD and Ohio National Life, and the
Independent Auditors' Report thereon, may be found in the Statement of
Additional Information.
4
<PAGE> 9
THE OHIO NATIONAL COMPANIES
OHIO NATIONAL LIFE
Ohio National Life was organized under the laws of Ohio in 1909 as a stock life
insurance company and became a mutual life insurance company in 1959. It writes
life, accident and health insurance and annuities in 46 states and the District
of Columbia. Currently it has assets in excess of $5.5 billion and equity in
excess of $500 million. Its home office is located at 237 William Howard Taft
Road, Cincinnati, Ohio.
OHIO NATIONAL VARIABLE ACCOUNT D
The establishment of VAD was authorized by Ohio National Life in 1969 as a
separate account under Ohio law for the purpose of funding variable annuity
contracts. (Until 1993, VAD was used to fund group variable annuity contracts
unrelated to the contracts offered in this prospectus. Those unrelated group
variable annuity contracts are now funded through another separate account of
Ohio National Life.) Contributions for the contracts are allocated to one or
more subaccounts of VAD. Income, gains and losses, whether or not realized, from
assets allocated to VAD are, as provided in the contracts, credited to or
charged against VAD without regard to other income, gains or losses of Ohio
National Life. The assets maintained in VAD will not be charged with any
liabilities arising out of any other business conducted by Ohio National Life.
Nevertheless, all obligations arising under the contracts, including the
commitment to make annuity payments, are general corporate obligations of Ohio
National Life. Accordingly, all of Ohio National Life's assets are available to
meet its obligations under the contracts. VAD is registered as a unit investment
trust under the 1940 Act.
OHIO NATIONAL FUND, INC.
The assets of each subaccount of VAD are invested at net asset value (without an
initial sales charge) in shares of a corresponding portfolio of the Fund: the
Equity Portfolio, Money Market Portfolio, Bond Portfolio, Omni Portfolio (a
flexible portfolio fund), International Portfolio, Capital Appreciation
Portfolio, Small Cap Portfolio, Global Contrarian Portfolio or Aggressive Growth
Portfolio. The Fund is a diversified, open-end, management investment company
registered under the 1940 Act. The value of the Fund's investments fluctuates
daily and is subject to the risk of changing economic conditions as well as the
risk inherent in the ability of management to anticipate changes necessary in
such investments to meet changes in economic conditions. The Fund receives
investment advice, for a fee, from its investment adviser, Ohio National
Investments Inc., and from Societe Generale Asset Management Corp. (sub-adviser
to the International and Global Contrarian Portfolios), T. Rowe Price
Associates, Inc. (sub-adviser to the Capital Appreciation Portfolio), Founders
Asset Management, Inc. (sub-adviser to the Small Cap Portfolio), and Strong
Capital Management Inc. (sub-adviser to the Aggressive Growth Portfolio). For
additional information concerning the Fund, including the investment objectives
of each of its portfolios, see the attached Fund prospectus. Read the Fund
prospectus carefully before investing.
In addition to being offered to VAD, Fund shares are currently offered to other
separate accounts of Ohio National Life in connection with variable annuity
contracts and a separate account of Ohio National Life Assurance Corporation in
connection with variable life insurance contracts. In the future, Fund shares
may be offered to other insurance company separate accounts. It is conceivable
that in the future it may become disadvantageous for both variable life and
variable annuity separate accounts to invest in the Fund. Although neither Ohio
National Life nor the Fund currently foresees any such disadvantage, the Board
of Directors of the Fund will monitor events in order to identify any material
conflict between variable life and variable annuity contractowners and to
determine what action, if any, should be taken in response thereto, including
the possible withdrawal of VAD`s participation in the Fund. Material conflicts
could result from such things as (1) changes in state insurance law; (2) changes
in federal income tax law; (3) changes in the investment management of any
portfolio of the Fund; or (4) differences between voting instructions given by
variable life and variable annuity contractowners.
5
<PAGE> 10
VOTING RIGHTS
Ohio National Life shall vote Fund shares held in VAD at meetings of Fund
shareholders in accordance with voting instructions received from contract
owners. The number of Fund shares for which an owner is entitled to give
instructions will be determined by Ohio National Life in the manner described
below, not more than 90 days prior to the meeting of the Fund. Fund proxy
material will be distributed to each owner together with appropriate forms for
giving voting instructions. Fund shares held in VAD, for which no timely
instructions are received, will be voted by Ohio National Life in proportion to
the instructions which are received with respect to all contracts participating
in VAD.
The number of Fund shares for which instructions may be given to Ohio National
Life is determined by dividing the value of a subaccount of the contract by the
net asset value of a share of the corresponding Fund portfolio as of the same
date. For variable annuities purchased for participants, the number of Fund
portfolio shares for which such instructions may be given is determined by
dividing the actuarial liability for variable annuities in the course of payment
by the net asset value of a Fund portfolio share as of the same date. Generally,
the number of votes tends to decrease as annuity payments progress.
DISTRIBUTION OF THE CONTRACTS
The contracts are sold by Ohio National Life insurance agents who are also
registered representatives of (a) The O. N. Equity Sales Company ("ONESCO"), a
wholly-owned subsidiary of Ohio National Life, registered under the Securities
Exchange Act of 1934, and a member of the National Association of Securities
Dealers, Inc. or (b) of other broker-dealers that have entered into distribution
agreements with the principal underwriter of the contracts. At the date of this
prospectus, ONESCO was the principal underwriter of the contracts. However,
pending receipt of necessary regulatory approvals, Ohio National Equities, Inc.,
a new wholly-owned subsidiary of Ohio National Life, will become the principal
underwriter. As compensation for their sales efforts, ONESCO and the other
broker-dealers will receive a fee from Ohio National Life equal to no more than
5% of contributions. ONESCO and the other broker-dealers will remunerate their
registered representatives from their own funds. Contributions on which no
compensation is paid to registered representatives will not be included in
amounts on which the 5% sales compensation will be paid to ONESCO and the other
broker-dealers. To the extent that the amount of the withdrawal charge received
by Ohio National Life is not sufficient to recover the fee paid to ONESCO and
the other broker-dealers, any deficiency will be made up from Ohio National
Life's general account assets which include, among other things, any profit from
the mortality and expense risk charges.
DEDUCTIONS AND EXPENSES
WITHDRAWAL CHARGE
No deduction for sales expense is made from contributions. A withdrawal charge
may be assessed by Ohio National Life when a contract is surrendered or a
withdrawal of a participant's account value is made for any reason other than to
make a plan payment to a participant. The purpose of the withdrawal charge is to
defray expenses relating to the sale of the contract, including compensation to
sales personnel, cost of sales literature and prospectuses, and other expenses
related to sales activity. Such charge equals a percentage of the contract value
withdrawn. This percentage will vary by the number of years from the date the
participant's account was established under the contract until the day the
withdrawal occurs as follows:
<TABLE>
<CAPTION>
YEAR OF
WITHDRAWAL PERCENTAGE
---------- ----------
<S> <C>
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
8 and later 0%
</TABLE>
6
<PAGE> 11
The total of all withdrawal charges together with any distribution expense risk
charges made against any participant account will never exceed 9% of the total
contributions made to that participant account. (See Deduction for Risk
Undertakings, below.)
DEDUCTION FOR ADMINISTRATIVE EXPENSES
A deduction is made at the end of each valuation period, presently equal to
0.35% on an annual basis, of the contract value for administrative expenses.
This deduction is not designed to produce a profit but to reimburse Ohio
National Life for expenses incurred for accounting, auditing, legal, contract
owner services, reports to regulatory authorities and contract owners, contract
issue, etc. Because the administrative expense deduction is a percentage of
assets, it is possible that larger contracts may bear a portion of the cost of
administering smaller contracts.
DEDUCTION FOR RISK UNDERTAKINGS
Ohio National Life guarantees that the contract value will not be affected by
any excess of sales and administrative expenses over the deductions provided
therefor. Ohio National Life also guarantees that variable annuity payments will
not be affected by adverse mortality experience or expenses.
For assuming these risks, Ohio National Life, in determining the accumulation
unit values and the annuity unit values for each subaccount, makes a deduction
from the applicable investment results equal to 1.00% of the contract value on
an annual basis. Although Ohio National Life views the risk charge as an
indivisible whole, of the amount currently being deducted, it has estimated that
a reasonable allocation would be 0.40% for mortality risk, and 0.60% for expense
risk. Although Ohio National Life hopes to realize a profit from this charge, if
the deduction is insufficient to cover the actual risk involved, the loss will
fall on Ohio National Life; conversely, if the deduction proves more than
sufficient, the excess will be a gain to Ohio National Life.
The contracts also provide for a distribution expense risk charge of no more
than 0.40%. Ohio National Life is presently not deducting that charge.
LIMITATIONS ON DEDUCTIONS
The contracts provide that the total of the deductions for administrative
expense, mortality and expense risks, and distribution expense risk may be
decreased by Ohio National Life at any time. Each of these deductions may be
increased, not more frequently than annually, provided that the total of all
these deductions shall not exceed 2.00% on an annual basis.
TRANSFER FEE
A transfer fee of $3 (which may be increased to $5) may be made for each
transfer of a participant's account values from one subaccount to another. The
fee is charged against the subaccount from which the transfer is effected.
Currently, no fee is charged for the first four transfers to a participant's
account each year.
DEDUCTION FOR STATE PREMIUM TAX
Most states do not presently charge a premium tax for these contracts. Where a
tax applies, the rates are presently 0.5% in California, 1.0% in Puerto Rico and
West Virginia, 2.0% in Kentucky and 2.25% in the District of Columbia. Normally,
any such applicable taxes will not be deducted until annuity payments begin
rather than being deducted from contributions.
FUND EXPENSES
There are deductions from, and expenses paid out of, the assets of the Fund.
These are described in the attached Fund prospectus.
7
<PAGE> 12
DESCRIPTION OF THE CONTRACTS
ACCUMULATION
CONTRIBUTION PROVISIONS
The contracts provide for minimum contributions of $25 per participant and
maximum contributions equal to the maximums permitted under the plan.
Contributions after the first may be made at any time but not more often than
biweekly. Ohio National Life may agree to modify any of these limits.
ACCUMULATION UNITS
The contract value is measured by accumulation units. Each contribution results
in the crediting of accumulation units to the contract (see Crediting
Accumulation Units, below). The number of accumulation units so credited remains
constant but the dollar value of accumulation units will vary depending upon the
investment results of the particular subaccount to which contributions are
allocated.
CREDITING ACCUMULATION UNITS
Completed application forms, together with a check for the first contribution,
are forwarded to the home office of Ohio National Life for acceptance. Upon
acceptance, a contract is issued to the contract owner, and the first
contribution is then credited to the contract in the form of accumulation units.
Initial contributions are credited not later than two business days after
receipt if the application and all information necessary for processing the
contribution are complete. If an application is not accepted within five
business days, the contribution will be returned immediately to the applicant
unless the applicant specifically consents to having Ohio National Life retain
the contribution until the application is completed. After that, the
contribution will be credited within two business days. Subsequent contributions
are sent directly to the home office of Ohio National Life and are applied to
provide that number of accumulation units (for each subaccount) determined by
dividing the amount of the contribution by the value of the appropriate
accumulation unit next computed after the payment is received at the home
office.
ALLOCATION OF CONTRIBUTIONS
In the contract application, the contract owner may direct the allocation of
contributions among the subaccounts of VAD and the general account of Ohio
National Life. The amount allocated to any subaccount or the general account
must equal a whole percentage. The allocation of future contributions may be
changed at any time upon written notice to the home office of Ohio National
Life.
ACCUMULATION UNIT VALUE AND CONTRACT VALUE
The accumulation unit value of each subaccount of VAD was set at $10 when the
first contribution was allocated to each such subaccount. The accumulation unit
value for any subsequent valuation period is determined by multiplying the
accumulation unit value for the immediately preceding valuation period by the
net investment factor (described below) for such subsequent valuation period.
The contract value is determined by multiplying the total number of accumulation
units (for each subaccount) credited to the contract by the accumulation unit
value (for such subaccount) for the valuation period for which the contract
value is being determined.
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<PAGE> 13
NET INVESTMENT FACTOR
The net investment factor is a quantitative measure of the investment results of
each subaccount of VAD. The net investment factor for each subaccount for any
valuation period is determined by dividing (a) by (b), then subtracting (c) from
the result, where:
(a) is
(1) the net asset value of a share in the appropriate portfolio of the Fund
determined as of the end of a valuation period, plus
(2) The per share amount of any dividends or other distributions declared
for that portfolio by the Fund if the "ex-dividend" date occurs during
the valuation period, plus or minus
(3) per share charge or credit for any taxes paid or reserved for, which is
determined by Ohio National Life to result from the maintenance or
operation of that subaccount of VAD (No federal income taxes are
applicable under present law.);
(b) is the net asset value of a share in the appropriate portfolio of the Fund
determined as the end of the preceding valuation period; and
(c) is the deduction for administrative expenses and risk undertakings. (See
Deduction for Administrative Expenses, page 7, and Deduction for Risk
Undertakings, page 7.)
SURRENDER AND WITHDRAWAL
The contract owner may surrender (totally withdraw the value of) the contract
for its contract value or make withdrawals therefrom. These transactions may be
subject to the withdrawal charge described on page 6. The withdrawal will be
made from the values of each subaccount in accordance with the contract owner's
instructions. The amount available for withdrawal is the sum of the subaccount
values less the withdrawal charge, if applicable. Payment by Ohio National Life
shall be made within seven days from the date of receipt of the request for such
payment except as it may be deferred under the circumstances described below.
Withdrawals are limited or not permitted in connection with certain retirement
plans. See Texas Optional Retirement Program, page 10, and Tax Deferred
Annuities, page 14. For tax consequences of a withdrawal, see Federal Tax
Status, page 13.
Occasionally, the contract owner may request a withdrawal which includes
contract values derived from contributions which have not cleared the banking
system. Ohio National Life may delay mailing that portion which relates to such
contributions until the check for the contribution has cleared.
The right to withdraw may be suspended or the date of payment postponed (1) for
any period during which the New York Stock Exchange is closed (other than
customary weekend and holiday closings) or during which trading on the Exchange,
as determined by the Securities and Exchange Commission, is restricted; (2) for
any period during which an emergency, as determined by the Commission, exists as
a result of which disposal of securities held in the Fund is not reasonably
practical, or it is not reasonably practical to determine the value of the
Fund's net assets; or (3) or such other periods as the Commission may by order
permit for the protection of security holders.
TRANSFERS AMONG SUBACCOUNTS
Contract values may be transferred at any time from one subaccount to another
upon the request of the owner. The amount of any such transfer within a
participant's account must be at least $500 (or the entire value of the
participant's interest in a subaccount, if less). Ohio National Life reserves
the right to limit the number, frequency, method or amount of transfers.
Transfers from any portfolio of the Fund on any one day may be limited to 1% of
the previous day's total net assets of that portfolio if Ohio National Life or
the Fund, in its or their discretion, believes that the portfolio might
otherwise be damaged. After the purchase of an annuity, transfers of the
participant's annuity values among subaccounts can only be made once each
calendar quarter. Such transfers may then be made without a transfer fee. (See
Transfer Fee, page 7, and Transfers After Annuity Purchase, page 12).
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<PAGE> 14
TELEPHONE TRANSFERS
If a participant first submits a pre-authorized form to Ohio National Life,
transfers may be made by telephoning Ohio National Life at 1-800-788-2420. Ohio
National Life will honor pre-authorized telephone transfer instructions from
anyone who is able to provide the personal identifying information requested,
but reserves the right to refuse to honor any such request if that seems
prudent. Ohio National Life will use reasonable procedures to confirm that
telephone instructions are genuine. (Otherwise, Ohio National Life may be liable
for any losses due to unauthorized or fraudulent instructions.) A written
confirmation will be sent following each telephone transfer.
PAYMENT OF PLAN BENEFITS
At the contract owner's request, and upon receipt of due proof, Ohio National
Life will apply a participant's account value to provide a benefit prescribed by
the plan in the event of the participant's death, disability, retirement or
termination of employment. No withdrawal charge will be made in connection with
the payment of such plan benefits.
TEXAS STATE OPTIONAL RETIREMENT PROGRAM
Under the Texas State Optional Retirement Program (the "Program"), contributions
may be excluded from the gross income of state employees for federal tax
purposes to the extent that such contributions do not exceed the exclusion
allowance provided by the Code. The Attorney General of Texas has interpreted
the Program as prohibiting any participating state employee from receiving the
surrender value of a contract funding benefits under the Program prior to
termination of employment or the state employee's retirement, death or total
disability. Therefore, no withdrawal by a participant in the Program will be
allowed until the first of these events occurs.
ANNUITY BENEFITS
PURCHASING AN ANNUITY
Upon written request by the contract owner, Ohio National Life will apply a
participant's account value to purchase an annuity. The contract owner must
specify the purpose, effective date, option, amount and frequency of payments,
and the payees (including the annuitant and any contingent annuitant and
beneficiary), and give evidence of the annuitant's age. Payments will be made to
the annuitant during the annuitant's lifetime. The contracts include Ohio
National Life's assurance that annuity payments will be paid for the lifetime of
the annuitant in accordance with the annuity rates contained in the contract,
regardless of actual mortality experience.
Once an annuity is purchased, the annuity cannot be surrendered for cash except
that, upon the death of the annuitant, the beneficiary shall be entitled to
surrender the annuity for the commuted value of any remaining period-certain
payments.
ANNUITY OPTIONS
The contract owner may elect one or more of the following annuity options upon
the purchase of an annuity for a participant (annuitant):
Option (a): Life Annuity with installment payments for the lifetime of the
annuitant (under this option it is possible for the annuitant to
receive only one payment; this could happen if the annuitant should
die before receiving the second payment; there is no residual value
of the contract after the annuitant's death).
Option (b): Life Annuity with installment payments guaranteed for five or
ten years and continuing thereafter during the remaining lifetime
of the annuitant.
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<PAGE> 15
Option (c): Joint & Survivor Life Annuity with installment payments during
the lifetime of an annuitant and all or a portion (e.g., 1/2 or
2/3) of the payments continuing during the lifetime of a designated
contingent annuitant (under this option it is possible for the
annuitant and contingent annuitant to receive only one payment;
this could happen if both were to die before receiving the second
payment).
Option (d): Installment Refund Life Annuity with payments guaranteed for a
period certain and continuing thereafter during the remaining
lifetime of the annuitant. The number of period-certain payments is
equal to the amount applied under this option divided by the amount
of the first payment.
Other settlement options are available as agreed to by Ohio National Life.
Unless the contract owner directs otherwise, when an annuity is purchased, the
participant's account values will be applied to provide annuity payments
pro-rata from each subaccount in the same proportion as the participant's
account values immediately prior to the purchase of the annuity.
DETERMINATION OF AMOUNT OF THE FIRST VARIABLE ANNUITY PAYMENT
The first payment under a variable annuity is determined by applying the value
of the participant's account for each subaccount in accordance with the purchase
rate tables contained in the contract. The rates contained in those tables
depend upon the annuitant's (and any contingent annuitant's) age and sex and the
option selected. Contracts issued to plans sponsored by employers subject to
Title VII of the Civil Rights Act of 1964 or similar state statutes use annuity
tables which do not vary with annuitant's sex. The accumulation value to be
applied is determined at the end of a valuation period (selected by Ohio
National Life and uniformly applied) not more than a month and a day before the
date of the participant's first annuity payment.
If the amount to be applied under an option is less than $5,000, the option
shall not be available and the participant's account value shall be paid in a
single sum. If the first periodic payment under any option would be less than
$50, Ohio National Life reserves the right to change the frequency of payments
so that the first such payment is at least $50.
ANNUITY UNIT AND THE DETERMINATION OF SUBSEQUENT PAYMENTS
Subsequent variable annuity payments will vary to reflect the investment
performance of each applicable subaccount. The amount of each subsequent payment
is determined by annuity units. The number of annuity units for each subaccount
is determined by dividing the dollar amount of the first annuity payment from
each subaccount by the value of the subaccount annuity unit for the same
valuation period used to determine the participant's account value applied to
provide annuity payments. This number of annuity units remains fixed for any
annuity unless changed as provided below.
The annuity unit value for each subaccount was set at $10 for the valuation
period as of which the first variable annuity payable from each subaccount of
VAD was calculated. The annuity unit value for each subsequent valuation period
equals the annuity unit value for the immediately preceding valuation period
multiplied by the net investment factor (see page 9) for such subsequent
valuation period and by a factor (0.9998925 for a one-day valuation period) to
neutralize the assumed interest rate discussed below.
The dollar amount of each subsequent variable annuity payment is equal to the
fixed number of annuity units for each subaccount multiplied by the value of the
annuity unit for the valuation period.
The annuity purchase rate tables contained in the contract are based on a
blended 1983(a) Annuity Mortality Table with compound interest at the effective
rate of 4% per year. A higher interest assumption would mean a higher initial
annuity payment but a more slowly rising series of subsequent annuity payments
if annuity unit values were increasing (or a more rapidly falling series of
subsequent annuity payments if annuity unit values were decreasing). A lower
interest assumption would have the opposite effect. If the actual net investment
rate were equal to the assumed interest rate, annuity payments would be level.
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<PAGE> 16
TRANSFERS AFTER ANNUITY PURCHASE
After annuity payments have been made for at least 12 months, the annuitant can,
once each 12 months, change the subaccount(s) on which variable annuity payments
are based. On at least 60 days written notice to Ohio National Life at its home
office, that portion of the periodic variable annuity payment directed by the
annuitant will be changed to reflect the investment results of a different
subaccount. The annuity payment immediately after such change will be the amount
that would have been paid without such change. Subsequent payments will reflect
the new mix of subaccount allocation.
OTHER CONTRACT PROVISIONS
ASSIGNMENT
Any amount payable in settlement of the contracts may not be commuted,
anticipated, assigned or otherwise encumbered, or pledged as loan collateral to
any person other than Ohio National Life. To the extent permitted by law, no
such amounts shall be subject in any way to any legal process to subject them to
payment of any claims against an annuitant before the annuity payments commence.
PERIODIC REPORTS
Ohio National Life will furnish the contract owner, at least annually, a
statement showing the number of accumulation units credited to the contract by
subaccount and the value of each such unit as of a date not more than four
months from the date of furnishing of the report. In addition, as long as the
contract remains in effect, Ohio National Life will forward such periodic
reports as may be furnished it by the Fund.
SUBSTITUTION FOR FUND SHARES
If investment in the Fund is no longer possible or in Ohio National Life's
judgment becomes inappropriate to the purposes of the contract, Ohio National
Life may substitute another mutual fund. Substitution may be made with respect
to both existing investments and the investment of future contributions.
However, no such substitution will be made without any necessary approval of the
Securities and Exchange Commission. We may also add other investment portfolios
of the Fund as eligible investments of VAD.
CONTRACT OWNER INQUIRIES
Any questions from contract owners should be directed to Ohio National Life,
Group Annuity Administration, P.O. Box 2669, Cincinnati, Ohio 45201; telephone
(513) 559-6514.
PERFORMANCE DATA
Ohio National Life may advertise performance data for the various Fund
portfolios showing the percentage change in the value of an accumulation unit
based on the performance of the applicable portfolio over a period of time
(usually a calendar year). Such percentage change is determined by dividing the
increase (or decrease) in value for the unit by the accumulation unit value at
the beginning of the period. This percentage figure will reflect the deduction
of any asset-based charges under the contract but will not reflect the deduction
of any applicable withdrawal charge. The deduction of any applicable withdrawal
charge would reduce any percentage increase or make greater any percentage
decrease.
Any such advertising will also include average annual total return figures
calculated as shown in the Statement of Additional Information. The average
annual total return figures will reflect the deduction of applicable withdrawal
charges as well as applicable asset-based charges.
Ohio National Life may also distribute sales literature comparing separate
account performance to the Consumer Price Index or to such established market
indexes as the Dow Jones Industrial Average, the Standard & Poor's 500 Stock
Index, IBC's Money Fund Reports, Lehman Brothers Bond Indices, Morgan Stanley
Europe Australia Far East Index, Morgan Stanley World Index, Russell 2000 Index,
or other variable annuity separate accounts.
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<PAGE> 17
FEDERAL TAX STATUS
The following discussion of federal income tax treatment of amounts received
under a variable annuity contract is not exhaustive, does not purport to cover
all situations, and is not intended as tax advice. A qualified tax adviser
should always be consulted with regard to the application of law to individual
circumstances. Tax laws can change, even with respect to contracts that have
already been issued. Tax law revisions, with unfavorable consequences to
contracts offered by this prospectus, could have retroactive effect on
previously issued contracts or on subsequent voluntary transactions in
previously issued contracts.
Ohio National Life is taxed as a life insurance company under Subchapter L of
the Internal Revenue Code (the "Code"). Since the operations of VAD are a part
of, and are taxed with, the operations of Ohio National Life, VAD is not
separately taxed as a "regulated investment company" under Subchapter M of the
Code.
No federal income tax is payable under present law on dividend income or capital
gains distribution from Fund shares held in VAD or upon capital gains realized
by VAD on redemption of Fund shares.
The contracts described in this prospectus are considered annuity contracts
under Section 72 of the Code, which generally provides for taxation of
annuities. Under existing provisions of the Code, any increase in the
accumulation value of the contract is not taxable to the owner or annuitant
until received, either in the form of annuity payments, as contemplated by the
contract, or in some other form of distribution.
When annuity payments commence under a participant's annuity, each payment is
taxable under Section 72 of the Code as ordinary income in the year of receipt
if the annuitant has neither paid any portion of the contributions nor has
previously been taxed on any portion of the contributions. If any portion of the
contributions has been paid from or included in the annuitant's taxable income,
this aggregate amount will be considered the annuitant's "investment in the
contract." The annuitant will be entitled to exclude from taxable income a
portion of each annuity payment equal to the annuitant's "investment in the
contract" divided by the period of expected annuity payments, determined by the
annuitant's life expectancy and the form of annuity benefit. Once the
annuitant's "investment in the contract" is recovered, the entire portion of
each annuity payment will be included in the annuitant's taxable income.
If an election is made to receive a participant's value in a single sum in lieu
of annuity payments, any amount received or withdrawn in excess of the
participant's "investment in the contract" will normally be taxed as ordinary
income in the year received. A withdrawal of a participant's account values is
taxable as income to the extent that the participant's accumulated account value
immediately before the payment exceeds the "investment in the contract." Such a
withdrawal is treated as a distribution of earnings first and only second as a
recovery of the participant's "investment in the contract."
There is a penalty tax equal to 10% of any amount that must be included in gross
income for tax purposes. The penalty will not apply to a redemption that is (1)
received on or after the taxpayer reaches age 59 1/2; (2) made to a beneficiary
on or after the death of the annuitant; (3) attributable to the taxpayer's
becoming disabled; (4) made as a series of substantially equal periodic payments
for the life of the annuitant (or joint lives of the annuitant and beneficiary);
(5) from a contract that is a qualified funding asset for purposes of a
structured settlement; or (6) made under an annuity contract that is purchased
with a single premium and with annuity payments that commence not later than a
year from the purchase of the annuity. If an election is made not to have
withholding apply to the early withdrawal or if an insufficient amount is
withheld, the participant may be responsible for payment of estimated tax. The
participant may also incur penalties under the estimated tax rules if the
withholding and estimated tax payments are not sufficient. Failure by a
participant to provide his or her taxpayer identification number will
automatically subject any payments under the contract to withholding.
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<PAGE> 18
TAX-DEFERRED ANNUITIES
Under the provisions of Section 403(b) of the Code, contributions made for
annuity contracts purchased for employees by public educational institutions and
certain tax-exempt organizations which are described in Section 501(c)(3) of the
Code are excludable from the gross income of such employees to the extent that
the aggregate contributions plus any other amounts contributed to the purchase
of a contract and toward benefits under qualified retirement plans do not exceed
the exclusion allowance determined for the employee as set forth in Sections
403(b) and 415 of the Code. Employee contributions are, however, subject to
social security (FICA) tax withholding. All amounts received by an employee
under a contract, either in the form of annuity payments or cash withdrawal,
will be taxed under Section 72 of the Code as ordinary income for the year
received, except for exclusion of any amounts representing "investment in the
contract." Under certain circumstances, amounts received may be used to make a
"tax-free rollover" into one of the types of individual retirement arrangements
permitted under the Code. Amounts received that are eligible for "tax-free
rollover" will be subject to an automatic 20% withholding unless such amounts
are directly rolled over from the tax-deferred annuity to the individual
retirement arrangement.
With respect to earnings accrued and contributions made after December 31, 1988,
pursuant to a salary reduction agreement under Section 403(b) of the Code,
distributions may be paid only when the employee (a) attains age 59 1/2, (b)
separates from the employer's service, (c) dies, (d) becomes disabled as defined
in the Code, or (e) incurs a financial hardship as defined in the Code. In the
case of hardship, cash distributions may not exceed the amount of such
contributions. These restrictions do not affect rights to transfer investments
among the subaccounts and do not limit the availability of exchanges.
QUALIFIED PENSION OR PROFIT-SHARING PLANS
Under present law, contributions made by an employer or trustee, pursuant to a
plan or trust qualified under Section 401(a) or 403(a) of the Code, are
generally excludable from gross income of the employee. The portion, if any, of
the contributions made by the employee, or which is considered taxable income to
the employee in the year such payments are made, constitutes an "investment in
the contract" under Section 72 of the Code for the employee's annuity benefits.
Employer or employee payments to a profit sharing plan qualifying under Section
401(k) of the Code are generally excludable from gross income of the employee.
Distributions must commence no later than April 1 of the calendar year following
the year in which the participant reaches age 70 1/2. Premature distribution of
benefits (prior to age 59 1/2) or contributions in excess of those permitted by
the Code may result in certain penalties under the Code.
If an employee, or one or more of the beneficiaries, receives the total amounts
payable with respect to an employee within one taxable year after age 59 1/2 on
account of the employee's death or separation from service of the employer, any
amount received in excess of the employee's "investment in the contract" may be
taxed under special 5-year forward averaging rules. The taxpayer can elect to
have that portion of a lump-sum distribution attributable to years of
participation prior to January 1, 1974 given capital gains treatment. The
percentage of pre-1974 distribution subject to capital gains treatment decreases
as follows: 100%, 1987; 95%, 1988; 75%, 1989; 50%, 1990; and 25%, 1991. For tax
years 1992 and thereafter no capital gains treatment is available. The employee
receiving such a distribution may be able to make a "tax-free rollover" of the
distribution less the employee's "investment in the contract" into another
employee's qualified plan or into one of the types of individual retirement
arrangements permitted under the Code. Amounts received that are eligible for
"tax-free rollover" will be subject to an automatic 20% withholding unless such
amounts are directly rolled over to another qualified plan or individual
retirement arrangement.
WITHHOLDING ON DISTRIBUTIONS
Distributions from tax-deferred annuities or qualified pension or profit sharing
plans that are eligible for "tax-free rollover" will be subject to an automatic
20% withholding unless such amounts are directly rolled over to an individual
retirement arrangement or another qualified plan. Federal income tax withholding
on annuity payments is required. However, recipients of annuity payments are
allowed to elect not to have the tax withheld. Such an election may be revoked
at any time with respect to annuity payments and thereafter withholding would
commence. Failure to provide your taxpayer identification number will
automatically subject any payments under the contract to withholding.
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<PAGE> 19
APPENDIX
FIXED ACCUMULATION ACCOUNT
The Fixed Accumulation Account guarantees a fixed return for a specified period
of time and guarantees the principal against loss. Any portion of a contract
relating to the Fixed Accumulation Account is not registered under the
Securities Act of 1933. The Fixed Accumulation Account is not registered as an
investment company under the 1940 Act. Accordingly, neither the Fixed
Accumulation Account nor any interests in it are subject to the provisions or
restrictions of either such Act, and the disclosures in this appendix have not
been reviewed by the staff of the Securities and Exchange Commission.
The Fixed Accumulation Account consists of all of Ohio National Life's general
assets other than those allocated to a separate account. Accumulation values
under a contract will be allocated between the Fixed Accumulation Account and
VAD. The allocation will be as elected by the contract owner or participant at
the time of purchase or as subsequently changed.
Ohio National will invest its general assets in its discretion as allowed by
applicable state law. Investment income from Ohio National Life's general assets
will be allocated to those contracts having guaranteed accumulation values in
accordance with the terms of such contracts
The amount of investment income allocated to the contracts will vary from year
to year in Ohio National Life's sole discretion. However, Ohio National Life
guarantees that it will credit interest at a rate of not less than 3% per year,
compounded annually, to contract values allocated to the Fixed Accumulation
Account. Ohio National Life may credit interest at a rate in excess of 3%, but
any such excess interest credit will be in Ohio National Life's sole discretion.
Ohio National Life guarantees that the fixed accumulation value of a contract
will never be less than (a) the amount of deposits allocated to, and transfers
into, the Fixed Accumulation Account, plus (b) interest credited at the rate of
3% per year compounded annually, plus (c) any additional excess interest Ohio
National Life may credit to fixed accumulation values, and less (d) any
withdrawals and transfers from the fixed accumulation values, and less (e) any
withdrawal charges, state premium taxes and transfer fees. No deductions are
made from the Fixed Accumulation Account for administrative expenses or risk
undertakings. (See Deductions and Expenses, page 6.) However, in addition to any
applicable withdrawal charge, Ohio National Life may assess a liquidation charge
as described below.
Contract values credited to the Fixed Accumulation Account will be allocated to
an investment cell of the Fixed Accumulation Account (a "Cell"). A Cell is a
partition of the Fixed Accumulation Account by the time period in which the
contract value is credited to the Fixed Accumulation Account (either by means of
a contract contribution or a transfer into the Fixed Accumulation Account).
Earlier Cells may be aggregated into a single Cell. Each Cell is credited with
interest at an associated rate declared by Ohio National Life. Such rate will
not be reduced more than once a year. Amounts withdrawn from or charged against
a participant's contribution account decrease the balances in the Cells
established within that participant's account on a last-in first-out basis. Only
when the most recently established Cell's balance is exhausted will the next
previously established Cell's balance be reduced.
Withdrawals made from a participant's portion of the Fixed Accumulation Account
are assessed a liquidation charge which is a percentage of the balance withdrawn
from a Cell. The percentage equals ten times x minus y (but never less than 0%),
where:
x is the annual effective interest rate declared by Ohio National Life
applicable to the Cell for new contract contributions as of the date of
withdrawal, and
y is the annual effective interest rate at the time of withdrawal that is
applicable to the Cell from which a withdrawal is being made.
In no event will the liquidation charge exceed the difference between the amount
of the participant's contract value allocated to the Fixed Accumulation Account
and the participant's minimum Fixed Accumulation Account value.
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<PAGE> 20
The participant's minimum Fixed Accumulation Account value equals the
participant's net purchase payments and transfers allocated to the Fixed
Accumulation Account, less withdrawals and transfers from the Fixed Accumulation
Account, accumulated at an annual effective interest rate of 3%. The liquidation
charge does not apply when the contract is discontinued because of termination
of the plan.
Upon discontinuance of the contract by the contract owner, the liquidation
charge will not be assessed if the contract owner elects to receive the balance
in the Fixed Accumulation Account in six payments over a five year period. The
first payment will be made within 30 days of discontinuance, equal to 1/6 of the
balance, and subsequent payments will be made at the end of each of the next
five years equal to 1/6 of the original balance plus interest credited to the
date of payment.
Not more than 20% of a participant's Fixed Accumulation Account value (or
$1,000, if greater), as of the beginning of any contract year, may be
transferred to one or more variable subaccounts during that contract year. As
provided by applicable state law, Ohio National Life reserves the right to defer
the payment of amounts withdrawn from the Fixed Accumulation Account for a
period not to exceed six months from the date written request for such
withdrawal is received by Ohio National Life.
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<PAGE> 21
PART B
STATEMENT OF ADDITIONAL INFORMATION
<PAGE> 22
OHIO NATIONAL VARIABLE ACCOUNT D
OF
THE OHIO NATIONAL LIFE INSURANCE COMPANY
237 William Howard Taft Road
Cincinnati, Ohio 45219
Telephone (513) 559-6514
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
This Statement of Additional Information is not a prospectus. It should be read
in conjunction with the prospectus for Ohio National Variable Account D ("VAD")
tax qualified group variable annuity contracts dated May 1, 1996. To obtain a
free copy of the VAD prospectus, write or call The Ohio National Life Insurance
Company ("Ohio National Life") at the above address.
Table of Contents
<TABLE>
<S> <C>
Custodian .................................... 2
Independent Certified Public Accountants ..... 2
Underwriter .................................. 2
Calculation of Money Market Subaccount Yield.. 3
Total Return ................................. 3
Transfer Limitations ......................... 4
Financial Statements ......................... 5
</TABLE>
GROUP RETIREMENT ADVANTAGE
<PAGE> 23
CUSTODIAN
Ohio National Life has executed an agreement with The Provident Bank ("the
Bank"), Cincinnati, Ohio, pursuant to which the shares of Ohio National Fund,
Inc. ("Fund") and other assets credited to VAD will be held in the custody of
the Bank. The agreement provides that the Bank will purchase Fund shares at
their net asset value determined as of the end of the valuation period of VAD
during which the deposit is received by Ohio National Life. The Bank effects
redemptions of Fund shares held by VAD upon instructions from Ohio National Life
at net asset value determined as of the end of the valuation period of VAD
during which a redemption request is received or made by Ohio National Life. In
addition, the Bank maintains appropriate records with respect to all
transactions in Fund shares relative to VAD.
The agreement requires the Bank to have at all times an aggregate capital,
surplus and undivided profit of not less than $2 million and prohibits
resignation by the Bank until (a) a successor custodian bank having the
qualifications enumerated above shall have agreed to serve as custodian, or (b)
VAD has been completely liquidated and the proceeds of such liquidation properly
distributed. Subject to these conditions the agreement of custodianship may be
terminated by either party upon sixty days written notice. For its services as
custodian, the Bank will be paid a fee to be agreed upon from time to time by
the Bank and Ohio National Life.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The financial statements of VAD as of December 31, 1995 and for the periods
indicated herein and of The Ohio National Life Insurance Company's
consolidated financial statements as of December 31, 1995 and 1994 and for the
periods indicated herein have been included herein in reliance upon the report
of KPMG Peat Marwick LLP, independent certified public accountants, appearing
elsewhere herein, and upon the authority of said firm as experts in accounting
and auditing.
UNDERWRITER
The offering of the contracts is continuous. At the date of this Statement of
Additional Information, The O. N. Equity Sales Company ("ONESCO"), a
wholly-owned subsidiary of Ohio National Life, was the principal underwriter of
the contracts. The aggregate amount of commissions paid to ONESCO with respect
to contracts issued by VAD, and the amounts retained by ONESCO have been:
<TABLE>
<CAPTION>
Aggregate Retained
Year Commissions Commissions
---- ----------- -----------
<S> <C> <C>
1995 $79,218 $None
</TABLE>
-2-
<PAGE> 24
Pending receipt of necessary regulatory approvals, Ohio National Equities, Inc.,
a new wholly-owned subsidiary of Ohio National Life, will become the principal
underwriter of the contracts.
CALCULATION OF MONEY MARKET SUBACCOUNT YIELD
The current yield of the Money Market subaccount for the seven days ended on
December 31, 1995, was 4.08%. This was calculated by determining the net change,
exclusive of capital changes, in the value of a hypothetical pre-existing
account having a balance of one accumulation unit of the subaccount at the
beginning of the seven-day period, dividing the net change in subaccount value
by the value of the subaccount at the beginning of the base period to obtain the
base period return, and multiplying the difference by 365/7. The resulting
figure is carried to the nearest hundredth of one percent.
TOTAL RETURN
The average annual compounded rate of return for a contract with respect to a
particular subaccount over a given period is found by equating the initial
amount invested to the ending redeemable value using the following formula:
P((1 + T)(To the Nth power)) = ERV
where: P = a hypothetical initial payment of $1,000,
T = the average annual total return,
n = the number of years, and
ERV = the ending redeemable value of a hypothetical $1,000
beginning-of-period payment at the end of the period (or
fractional portion thereof).
For this purpose, it should be noted that the current series of contracts were
initially offered on January 25, 1995. Hypothetical results based upon
performance of the portfolio underlying each subaccount prior to that date
assume that the same charges and deductions applicable to the current contracts
were in effect from the inception of each corresponding portfolio. Based on
those assumptions, the average total returns for contracts in each of the
subaccounts from the inception of the subaccount and for the one-, five- and
ten-year periods ending on December 31, 1995, and assuming surrender of the
contract on the latter date, are as follows:
<TABLE>
<CAPTION>
One Five Ten From Inception
Year Years Years Inception Date
---- ----- ----- --------- ---------
<S> <C> <C> <C> <C> <C>
Equity 25.51% 11.94% 11.83% 8.70% 10-06-69
Money Market 4.21% 2.82% 4.33% 6.13% 03-20-80
Bond 17.31 7.53% 6.86% 7.59% 11-02-82
Omni 21.12% 10.58% 8.66% 9.20% 09-10-84
International 10.61% N/A N/A 15.29% 04-30-93
Capital Appreciation 20.98% N/A N/A 14.46% 05-01-94
Small Cap 31.24% N/A N/A 31.34% 05-01-94
Global Contrarian N/A N/A N/A 7.80% 03-31-95
Aggressive Growth N/A N/A N/A 25.68% 03-31-95
</TABLE>
-3-
<PAGE> 25
TRANSFER LIMITATIONS
To the extent that transfers, surrenders, partial withdrawals and annuity
payments from a subaccount exceed net purchase payments and transfers into that
subaccount, securities of the corresponding portfolio of the Fund may have to be
sold. Excessive sales of a portfolio's securities on short notice could be
detrimental to that portfolio and to contractowners with values allocated to the
corresponding subaccount. To protect the interests of all contractowners, Ohio
National Life reserves the right to limit the number, frequency, method or
amount of transfers. Transfers from any portfolio of the Fund on any one day may
be limited to 1% of the previous day's total net assets of that portfolio if
Ohio National Life or the Fund, in its or their discretion, believes that the
portfolio might otherwise be damaged.
If and when transfers must be so limited, some transfer requests will not be
made. In determining which requests will be made, scheduled transfers (that is,
those pursuant to a pre-existing dollar cost averaging program) will be made
first, followed by mailed written requests in the order postmarked and, lastly,
telephone and facsimile requests in the order received. Contractowners whose
transfer requests are not made will be no notified. Current SEC rules preclude
Ohio National Life from processing at a later date those requests that were not
made. Accordingly, a new transfer request would have to be submitted in order to
make a transfer that was not made because of these limitations.
-4-
<PAGE> 26
OHIO NATIONAL VARIABLE ACCOUNT D
INDEPENDENT AUDITORS' REPORT
The Board of Directors
The Ohio National Life Insurance Company
The Contract Owners
Ohio National Variable Account D
We have audited the accompanying statements of assets and contract owners'
equity of Ohio National Variable Account D as of December 31, 1995, and the
related statements of operations, changes in contract owners' equity and
schedules of changes in unit values for each of the periods indicated herein.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our 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, 1995, by examination of the
underlying mutual fund. 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 Ohio National Variable Account
D at December 31, 1995, and the results of its operations, changes in contract
owners' equity and changes in unit values for each of the periods indicated
herein, in conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Cincinnati, Ohio
January 26, 1996
================================================================================
OHIO NATIONAL VARIABLE ACCOUNT D
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL SMALL GLOBAL AGGRESS.
EQUITY MARKET BOND OMNI NATIONAL APPREC. CAP CONTR. GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets - Investments
at market value
(note 2) $162,073 $17,915 $12,766 $159,079 $229,548 $463,995 $316,710 $91,883 $38,424
======== ======= ======= ======== ======== ======== ======== ======= =======
Contract owners'
equity:
Contracts in
accumulation
period (note 3) $162,073 $17,915 $12,766 $159,079 $229,548 $463,995 $316,710 $91,883 $38,424
======== ======= ======= ======== ======== ======== ======== ======= =======
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 27
OHIO NATIONAL VARIABLE ACCOUNT D
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY (a) MONEY MARKET (a) BOND (a) OMNI (a) INTERNATIONAL (a)
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
1995 1995 1995 1995 1995
---------- --------------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends ...................................... $ 321 $ 1,857 $ 89 $ 242 $ 2,327
-------- -------- -------- -------- --------
Realized and Unrealized gain (loss) on investments:
Realized gain (loss) ............................. 16 295 82 501 1,799
Unrealized gain .................................. 6,414 0 462 2,973 9,439
-------- -------- -------- -------- --------
Net gain on
investments ................................... 6,430 295 544 3,474 11,238
-------- -------- -------- -------- --------
Net investment activity ..................... 6,751 2,152 633 3,716 13,565
-------- -------- -------- -------- --------
Equity transactions:
Sales:
Contract purchase payments ......................... 129,711 166,168 8,173 158,758 189,060
Transfers from fixed and
other subaccounts ................................ 26,104 0 3,932 0 31,106
-------- -------- -------- -------- --------
155,815 166,168 12,105 158,758 220,166
-------- -------- -------- -------- --------
Redemptions:
Withdrawals and surrenders ......................... 0 0 0 3,181 2,707
Transfers to fixed and
other subaccounts ................................ 0 149,948 0 0 0
-------- -------- -------- -------- --------
0 149,948 0 3,181 2,707
-------- -------- -------- -------- --------
Net equity transactions ........................ 155,815 16,220 12,105 155,577 217,459
-------- -------- -------- -------- --------
Risk and administrative
expense (note 4) ..................................... 493 457 (28) 214 1,476
-------- -------- -------- -------- --------
Net change in contract
owners' equity ................................... 162,073 17,915 12,766 159,079 229,548
Contract owners' equity:
Beginning of period .................................. 0 0 0 0 0
-------- -------- -------- -------- --------
End of period ........................................ $162,073 $ 17,915 $ 12,766 $159,079 $229,548
======== ======== ======== ======== ========
<CAPTION>
CAPITAL GLOBAL AGGRESSIVE
APPRECIATION (a) SMALL CAP (a) CONTRAR. (b) GROWTH (b)
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
1995 1995 1995 1995
--------------- ------------- ------------ ----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends ...................................... $ 3,674 $ 153 $ 351 $ 340
-------- -------- -------- --------
Realized and Unrealized gain (loss) on investments:
Realized gain (loss) ............................. 3,926 (1,006) 603 0
Unrealized gain .................................. 28,623 34,872 4,252 998
-------- -------- -------- --------
Net gain on
investments ................................... 32,549 33,866 4,855 998
-------- -------- -------- --------
Net investment activity ..................... 36,223 34,019 5,206 1,338
-------- -------- -------- --------
Equity transactions:
Sales:
Contract purchase payments ......................... 408,147 244,607 86,552 22,077
Transfers from fixed and
other subaccounts ................................ 27,869 42,455 745 15,115
-------- -------- -------- --------
436,016 287,062 87,297 37,192
-------- -------- -------- --------
Redemptions:
Withdrawals and surrenders ......................... 5,431 2,523 0 0
Transfers to fixed and
other subaccounts ................................ 0 0 0 0
-------- -------- -------- --------
5,431 2,523 0 0
-------- -------- -------- --------
Net equity transactions ........................ 430,585 284,539 87,297 37,192
-------- -------- -------- --------
Risk and administrative
expense (note 4) ..................................... 2,813 1,848 620 106
-------- -------- -------- --------
Net change in contract
owners' equity ................................... 463,995 316,710 91,883 38,424
Contract owners' equity:
Beginning of period .................................. 0 0 0 0
-------- -------- -------- --------
End of period ........................................ $463,995 $316,710 $ 91,883 $ 38,424
======== ======== ======== ========
</TABLE>
(a) Commenced operations February 27, 1995.
(b) Commenced operations March 31, 1995.
The accompanying notes are an integral part of these financial statements.
<PAGE> 28
OHIO NATIONAL VARIABLE ACCOUNT D
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ohio National Variable Account D (the Account) is a separate account of
The Ohio National Life Insurance Company (ONLIC) and all obligations
arising under variable annuity contracts are general corporate obligations
of ONLIC. The account has been registered as a unit investment trust under
the Investment Company Act of 1940.
Assets of the Account are invested in shares of Ohio National Fund, Inc.
(the Fund), a diversified open-end management investment company. The
Fund's investments are subject to varying degrees of market, interest and
financial risks; the issuers' abilities to meet certain obligations may be
affected by economic developments in their respective industries.
Investments are valued at the net asset value of fund shares held at
December 31, 1995. Share transactions are recorded on the trade date.
Income and capital gain distributions are recorded on the ex-dividend date.
Net realized capital gain or loss is determined on the basis of average
cost.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
(2) INVESTMENTS
At December 31, 1995 the aggregate cost and number of shares of Ohio
National Fund, Inc. owned by the respective subaccounts were:
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL SMALL GLOBAL AGGRESS.
EQUITY MARKET BOND OMNI NATIONAL APPREC. CAP CONTR. GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost $155,660 $17,915 $12,304 $156,106 $220,109 $435,372 $281,838 $87,631 $37,426
Number of shares 5,670 1,792 1,168 9,039 15,959 38,705 19,979 8,505 3,244
</TABLE>
(3) CONTRACTS IN ACCUMULATION PERIOD
At December 31, 1995 the accumulation units and value per unit of the
respective subaccounts and products were:
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT
------------------ --------------
<S> <C> <C>
Equity Subaccount ................................ 13,286.668 $12.198167
Money Market Subaccount .......................... 1,731.516 10.346422
Bond Subaccount .................................. 1,139.039 11.207694
Omni Subaccount .................................. 13,546.778 11.742940
International Subaccount ......................... 20,392.876 11.256284
Capital Appreciation Subaccount .................. 39,781.835 11.663489
Small Cap Subaccount ............................. 24,532.775 12.909669
Global Contrarian Subaccount ..................... 8,523.412 10.780072
Aggressive Growth Subaccount ..................... 3,057.251 12.568155
</TABLE>
<PAGE> 29
OHIO NATIONAL VARIABLE ACCOUNT D
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(4) RISK AND ADMINISTRATIVE EXPENSE
A deduction is made at the end of each valuation period, presently equal to
0.35% on an annual basis, of the contract value for administrative
expenses, based on premiums established at the time the contracts are
issued.
Although variable annuity payments will differ according to the investment
performance of the Accounts, they will not be affected by mortality or
expense experience because ONLIC assumes the expense risk and the mortality
risk under the contracts. ONLIC charges the Accounts' assets for assuming
those risks, based on the contract value at a rate of 0.40% for mortality
expense and 0.60% for expense risk.
The expense risk assumed by ONLIC is the risk that the deductions for sales
and administrative expenses provided for in the variable annuity contract
may prove insufficient to cover the cost of those terms.
The mortality risk results from a provision in the contract in which ONLIC
agrees to make annuity payments regardless of how long a particular
annuitant or other payee lives and how long all annuitants or other payees
as a class live if payment options involving life contingencies are chosen.
Those annuity payments are determined in accordance with annuity purchase
rate provisions established at the time the contracts are issued.
(5) CONTRACT CHARGES
No deduction for a sales charge is made from purchase payments. A
withdrawal charge ranging from 0% to 7% may be assessed by ONLIC when a
contract is surrendered or a partial withdrawal of a participant's account
value is made for any other reason than to make a plan payment to a
participant.
A transfer fee is charged for each transfer from one subaccount to another.
The fee is charged against the contract owner's equity in the subaccount
from which the transfer is effected.
State premium taxes presently range from 0% to 2 1/2% for these contracts.
In those jurisdictions permitting, such taxes will be deducted when annuity
payments begin. Elsewhere, they will be deducted from purchase payments.
(6) FEDERAL INCOME TAXES
Operations of the Account form part of, and are taxed with, operations of
ONLIC which is taxed as a life insurance company under the Internal Revenue
Code. Taxes are the responsibility of the contract owner upon termination
or withdrawal. No Federal income taxes are payable under present law on
dividend income or capital gains distribution from the Fund shares held in
the Account or on capital gains realized by the Account on redemption of
the Fund shares.
(7) NOTE TO SCHEDULE 1
Schedule 1 presents the components of the change in the unit values, which
are the basis for determining contract owners' equity. This schedule is
presented for each series, as applicable, in the following format:
- Beginning unit value
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to capital
gain and dividend distributions from the underlying mutual fund.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the fund.)
- Contract charges
(This amount reflects the decrease in the unit value due to Risk and
Administrative Expenses discussed in note 4 to the financial
statements.)
- Ending unit value
- Percentage increase (decrease) in unit value.
<PAGE> 30
SCHEDULE 1
OHIO NATIONAL VARIABLE ACCOUNT D
SCHEDULES OF CHANGES IN UNIT VALUES
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
EQUITY MONEY BOND OMNI INTERNATIONAL
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
1995
Beginning unit value ........................... 10.000000 ** 10.000000 ** 10.000000 ** 10.000000 ** 10.000000 **
Reinvested capital gains and dividends.......... 0.069452 0.483949 0.193081 0.078451 0.169825
Realized and unrealized gain.................... 2.289034 0.000000 1.162672 1.819895 1.234435
Contract charges................................ -0.160319 -0.137527 -0.148059 -0.155406 -0.147976
Ending unit value............................... 12.198167 10.346422 11.207694 11.742940 11.256284
Percentage increase in unit value*.............. 22.0% 3.5% 12.1% 17.4% 12.6%
</TABLE>
<TABLE>
<CAPTION>
CAPITAL AGGRESSIVE SMALL GLOBAL
APPRECIATION GROWTH CAP CONTRARIAN
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
1995
<S> <C> <C> <C> <C>
Beginning unit value............................ 10.000000 ** 10.000000 ** 10.000000 *** 10.000000 ***
Reinvested capital gains and dividends.......... 0.141706 0.010067 0.052740 0.329411
Realized and unrealized gain.................... 1.673584 3.067547 0.870110 2.405839
Contract charges................................ -0.151801 -0.167945 -0.142778 -0.167095
Ending unit value............................... 11.663489 12.909669 10.780072 12.568155
Percentage increase in unit value* ............. 16.6% 29.1% 7.8% 25.7%
</TABLE>
* An annualized rate or return cannot be determined as contract charges do not
include the contract charges discussed in note (5).
** Commenced operations February 27, 1995.
*** Commenced operations March 31, 1995.
See accompanying notes to the financial statements.
<PAGE> 31
OHIO NATIONAL VARIABLE ACCOUNT D
FORM N-4
PART C
OTHER INFORMATION
<PAGE> 32
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
The following financial statements of the Registrant are included in Part B of
this Registration Statement:
Independent Auditors' Report of KPMG Peat Marwick LLP dated January 19,
1996
Statement of Assets and Contract Owners' Equity dated December 31, 1995
Statement of Operations and Changes in Contract Owners' Equity for the Year
Ended December 31, 1995
Notes to Financial Statements dated December 31, 1995
Schedule of Changes in Unit Values for the Year Ended December 31, 1995
The following consolidated financial statements of The Depositor and its
subsidiaries are also included in Part B of this Registration Statement and will
be furnished by a subsequent Post-effective Amendment hereto:
Independent Auditors' Report of KPMG Peat Marwick LLP dated February 9,
1996
Consolidated Balance Sheets dated December 31, 1995 and 1994
Consolidated Statements of Operations for the Years Ended December 31,
1995, 1994 and 1993
Consolidated Statements of Surplus for the Years Ended December 31, 1995,
1994 and 1993
Consolidated Statements of Cash Flow for the Years Ended December 31, 1995,
1994 and 1993
Notes to Consolidated Financial Statements dated December 31, 1995, 1994
and 1993
The following financial information is included in Part A of this Registration
Statement:
Accumulation Unit Values
Consents of the Following Persons:
KPMG Peat Marwick LLP
Exhibits:
(13) Computation of Performance Data
All other relevant exhibits, which have previously been filed with the
Commission and are incorporated herein by reference, are as follows:
(1) Resolution of Board of Directors of the Depositor authorizing
establishment of the Registrant was filed as Exhibit A(1) of the
registration statement of Ohio National Variable Account A ("VAA") on
Form S-6 on August 3, 1982 (File no. 2-78652).
(2) Agreement of Custodianship between the Depositor and The Provident
Bank was filed as Exhibit 3 of the VAA's Form N-4, Post-effective
Amendment no. 5 on April 27, 1988 (File no. 2-91213).
-1-
<PAGE> 33
(3)(a) Distribution Agreement between the Depositor and The O.N. Equity
Sales Company was filed as Exhibit A(3)(a) of the Registrant's
registration statement on July 20, 1994.
(3)(b) Registered Representative's Sales Contract with Variable Annuity
Supplement was filed as Exhibit (3)(b) of VAA's Form N-4,
Post-effective Amendment no. 9 on February 27, 1991 (File no.
2-91213).
(3)(c) Variable Annuity Sales Commission Schedule was filed as Exhibit
A(3)(c) of VAA's registration statement on Form S-6 on May 18,
1984 (File no. 2-91213).
(4) Group Annuity, Form GA-93-VF-1, was filed as Exhibit (4) of the
Registrant's registration statement on Form N-4 on July 20, 1994.
(4)(a) Group Annuity Certificate, Form GA-93-VF-1C, was filed as Exhibit
(4)(a) of the Registrant's registration statement on July 20,
1994.
(5) Group Annuity Application, Form 3762-R, was filed as Exhibit (5)
of the Registrant's registration statement on July 20, 1994.
(6)(a) Articles of Incorporation of the Depositor were filed as Exhibit
A(6)(a) of Ohio National Variable Interest Account registration
statement on Form N-8B-2 on July 11, 1980 (File no. 811-3060).
(6)(b) Code of Regulations (by-laws) of the Depositor were filed as
Exhibit A(6)(b) of Ohio National Variable Interest Account
registration statement on Form N-8B-2 on July 11, 1980 (File no.
811-3060).
(8) Powers of Attorney by certain Directors of the Depositor were
filed as Exhibit (8) of the Registrant's Form N-4, Post-effective
Amendment no. 1 on March 27, 1995
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
- ------------------ ---------------------
<S> <C>
Trudy K. Backus* Vice President, Individual Insurance Services
Howard C. Becker* Vice President, Corporate and Human Resources
Paul L. Bergmann* Vice President, Financial Control (Treasurer)
Michael A. Boedeker* Vice President, Fixed Income Securities
Tom D. Bowman* Sales Vice President, Pensions
Joseph P. Brom* Senior Vice President & Chief Investment Officer
Dale P. Brown Director
36 East Seventh Street
Cincinnati, Ohio 45202
Jack E. Brown Director
50 E. Rivercenter Blvd.
Covington, Kentucky 41011
</TABLE>
-2-
<PAGE> 34
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
- ------------------ ---------------------
<S> <C>
William R. Burleigh Director
One West Fourth Street
Suite 1100
Cincinnati, Ohio 45202
Victoria B. Buyniski Director
2343 Auburn Avenue
Cincinnati, Ohio 45219
Raymond R. Clark Director
201 East Fourth Street
Cincinnati, Ohio 45202
David W. Cook* Senior Vice President and Actuary
Dr. Alvin H. Crawford Director
Children's Hospital Medical Center
Department of Orthopedics
Elland and Bethesda Avenues
Cincinnati, Ohio 45229
Robert M. DiTommaso* Vice President, Career Marketing
Ronald J. Dolan* Senior Vice President and Chief Financial Officer
Michal J. Ferry* Information Systems Vice President
Bannus B. Hudson Director
One Eastwood Drive
Cincinnati, Ohio 45227
Daniel W. LeBlond Director
7680 Innovation Way
Mason, Ohio 45040
David G. McClure* Vice President, Variable Product Sales
Hamilton F. McGregor* Senior Vice President,Group & Pension Operations
Charles S. Mechem, Jr. Director
One East Fourth Street
Cincinnati, Ohio 45202
Joan E. Mettey* Vice President, Claims
James I. Miller, II* Vice President, Marketing Support
James W. Nethercott Director
8431 Concord Hills Circle
Cincinnati, Ohio 45243
Thomas O. Olson* Vice President, Underwriting
</TABLE>
-3-
<PAGE> 35
<TABLE>
<S> <C>
David B. O'Maley* Director, Chairman, President and Chief Executive Officer
George B. Pearson, Jr.* Vice President, PGA Marketing
Dallas L. Pennington* Vice President, Information Systems
J. Donald Richardson* Senior Regional Vice President
D. Gates Smith* Senior Vice President, Sales
Michael D. Stohler* Vice President, Mortgages and Real Estate
Stuart G. Summers* Senior Vice President and General Counsel
Oliver W. Waddell Director
425 Walnut Street
Cincinnati, Ohio 45202
Bradley L. Warnemunde Director and Chairman Emeritus
250 William Howard Taft Road
Cincinnati, Ohio 45219
Dr. David S. Williams* Vice President and Medical Director
Donald J. Zimmerman* Director and Senior Vice President, Insurance Operations
and Secretary
</TABLE>
* The principal business address for these individuals is 237 William Howard
Taft Road, Cincinnati, Ohio 452l9
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
The Organization Chart showing the relationships among the Depositor, the
Registrant and their affiliated entities is on page 4A hereof.
ITEM 27. NUMBER OF CONTRACTOWNERS
As of February 1, 1996, the Registrant's contracts were owned by 29 owners.
ITEM 28. INDEMNIFICATION
The sixth article of the Depositor's Articles of Incorporation, as amended,
provides as follows:
Each former, present and future Director, Officer or Employee of the
Corporation (and his heirs, executors or administrators), or any such
person (and his heirs, executors or administrators) who serves at the
Corporation's request as a director, officer, partner, member or employee
of another corporation, partnership or business organization or
association of any type whatsoever shall be indemnified by the Corporation
against reasonable expenses, including attorneys' fees, judgments, fine
and amounts paid in settlement actually and reasonably incurred by him in
connection with the defense of any contemplated, pending or threatened
action, suit or proceeding, civil, criminal, administrative or
investigative, other than an action by or in the right of the corporation,
to which he is or may be made a party by reason of being or having been
such Director, Officer, or Employee of the Corporation or having served at
the Corporation's request as such director, officer, partner, member or
employee of any other business organization or association, or in
connection with any appeal therein, provided a
-4-
<PAGE> 36
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
THE OHIO NATIONAL LIFE INSURANCE COMPANY/CINCINNATI
A MUTUAL LIFE INSURANCE COMPANY INCORPORATED UNDER THE LAWS OF OHIO
- --------------------------------------------------------------------------------
| |
| |
| |
| |
| |
| |
- ------------------------------- -----------------------------
ENTERPRISE PARK, INC. OHIO NATIONAL EQUITIES INC.
A GEORGIA CORPORATION A BROKER/DEALER
REAL ESTATE DEVELOPMENT COMPANY CAPITALIZED BY ONLI @ $30,000
CAPITALIZED BY ONLI $50,000
- ------------------------------- --------------------------------
Pres. & Dir. M. Stohler Chm. & Dir. D. O'Maley
V.P. & Dir. J. Brom Pres. & Dir. D. Zimmerman
Secy. & Dir. T. Tews VP/COO/Dir. D. McClure
Treas. & Dir. P. Bergmann VP & Dir. T. Backus
Director T. Bowman
Secretary R. Benedict
Treasurer K. Jaeger
Compliance Officer A. Starkey
Asst. Secy. B. Hopewell
- ------------------------------- --------------------------------
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------------------------------------------
THE OHIO NATIONAL LIFE INSURANCE COMPANY/CINCINNATI
A MUTUAL LIFE INSURANCE COMPANY INCORPORATED UNDER THE LAWS OF OHIO
- -------------------------------------------------------------------------------------------------------------------
| | S E P A R A T E A C C O U N T S |
| | -------------------------------- |
| | A B C D E F |
| | -------------------------------- |
| | | |
| | | |
- ------------------------------- ------------------------------ | -------------------------------------
OHIO NATIONAL INVESTMENTS, INC. THE O.N. EQUITY SALES COMPANY | OHIO NATIONAL LIFE
| ASSURANCE CORPORATION
AN INVESTMENT ADVISER AN OHIO CORPORATION | AN OHIO CORPORATION
CAPITALIZED BY ONLI @ $10,000 A BROKER/DEALER | A STOCK LIFE INSURANCE COMPANY
CAPITALIZED BY ONLI @ $790,000 | CAPITALIZED BY ONLI @ $32,000,000
| INCORPORATED UNDER THE LAWS OF OHIO
- ------------------------------- ------------------------------ | ------------------------------------
Chm. & Dir. D. O'Maley | Chm./Pres/.CEO & Dir. D. O'Maley
Pres. & Dir. J. Brom | Sr. VP & Dir. R. Dolan
Pres. & Dir. D. Zimmerman | Sr. VP/Secy. & Dir. D. Zimmerman
VP & Dir. M. Boedeker | Sr. VP & Dir. S. Summers
V.P. & Dir. T. Bowman | Sr. VP & Dir. J. Brom
VP & Dir. D. McClure | Sr. Vice Pres. D. Cook
V.P., COO & Dir. D. McClure | Sr. Vice Pres. G. Smith
VP & Dir. S. Williams | Vice President P. Bergmann
Secy. & Dir. R. Benedict | Vice President M. Boedeker
Treasurer D. Taney | Vice President R. DiTommaso
Director S. Summers | Vice President J. Mettey
Secretary R. Benedict | Vice President G. Pearson
Treasurer K. Jaeger | Vice President D. Pennington
Asst. Secy. B. Hopewell | Vice President M. Stohler
Asst. Secretary B. Hopewell | Second Vice Pres. J. Houser
| Asst. Secy. R. Benedict
Compliance Director A. Starkey | Asst. Secy. T. Tews
| Asst. Actuary K. Flischel
- ------------------------------- ------------------------------ | ------------------------------------
| | SEPARATE ACCOUNT
| |-------------------------------------
| | R
| | ---
<= Advisor to | Advisor to => |
-------------------------------------------------------- |
| | |
- ----------------------------- -------------------------------- | | --------------------------------
ONE FUND, INC. O.N. INVESTMENT MANAGEMENT CO. | | OHIO NATIONAL FUND
| |
A MARYLAND CORPORATION AN OHIO CORPORATION | | A MARYLAND CORPORATION
AN OPEN END DIVISIFIED A FINANCIAL ADVISORY SERVICE | | AN OPEN END DIVERSIFIED
MANAGEMENT INVESTMENT COMPANY CAPITALIZED BY ONESCO @ $145,000 | | MANAGEMENT INVESTMENT COMPANY
- ----------------------------- -------------------------------- | | --------------------------------
Pres. & Dir. D. Zimmerman Pres. & Dir. J. Brom | | Pres. & Dir. D. Zimmerman
Vice. Pres. M. Boedeker | ----- Vice President M. Boedeker
Vice Pres. J. Brom VP & Dir. M. Boedeker | Vice President J.Brom
Vice Pres. D. McClure | Vice President S. Williams
Vice Pres. S. Williams VP & Dir. D. McClure | Treasurer D. Taney
Treasurer D. Taney -------- Secy. & Dir. R. Benedict
Secy. & Dir. R. Benedict VP & Dir. S. Willams Asst. Secy. B. Hopewell
Asst. Secy. B. Hopewell Director J. Baker
Asst. Secy. A. Starkey Treasurer D. Taney Director G. Castrucci
Director J. Baker Director M. Kirby
Director G. Castrucci Secretary R. Benedict
Director M. Kirby
Asst. Secy. B. Hopewell
- --------------------------------- -------------------------------- ---------------------------------
</TABLE>
<PAGE> 37
determination is made by majority vote of a disinterested quorum of the
Board of Directors (a) that such a person acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best
interests of the Corporation, and (b) that, in any matter the subject of
criminal action, suit or proceeding, such person had no reasonable cause
to believe his conduct was unlawful. The termination of any action, suit
or proceeding by 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 in any 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, he
had reasonable cause to believe that his conduct was unlawful. Such right
of indemnification shall not be deemed exclusive of any other rights to
which such person may be entitled. The manner by which the right to
indemnification shall be determined in the absence of a disinterested
quorum of the Board of Directors shall be set forth in the Code of
Regulations or in such other manner as permitted by law. Each former,
present, and future Director, Officer or Employee of the Corporation (and
his heirs, executors or administrators) who serves at the Corporation's
request as a director, officer, partner, member or employee of another
corporation, partnership or business organization or association of any
type whatsoever shall be indemnified by the Corporation against reasonable
expenses, including attorneys' fees, actually and reasonably incurred by
him in connection with the defense or settlement of any contemplated,
pending or threatened action, suit or proceeding, by or in the right of
the Corporation to procure a judgment in its favor, to which he is or may
be a party by reason of being or having been such Director, Officer or
Employee of the Corporation or having served at the Corporation's request
as such director, officer, partner, member or employee of any other
business organization or association, or in connection with any appeal
therein, provided a determination is made by majority vote of a
disinterested quorum of the Board of Directors (a) that such person was
not, and has not been adjudicated to have been negligent or guilty of
misconduct in the performance of his duty to the Corporation or to such
other business organization or association, and (b) that such person acted
in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Corporation. Such right of
indemnification shall not be deemed exclusive of any other rights to which
such person may be entitled. The manner by which the right of
indemnification shall be determined in the absence of a disinterested
quorum of the Board of Directors shall be as set forth in the Code of
Regulations or in such other manner as permitted by law.
In addition, Article XII of the Depositor's Code of Regulations states as
follows:
If any director, officer or employee of the Corporation may be entitled to
indemnification by reason of Article Sixth of the Amended Articles of
Corporation, indemnification shall be made upon either (a) a determination
in writing of the majority of disinterested directors present, at a
meeting of the Board at which all disinterested directors present
constitute a quorum, that the director, officer or employee in question
was acting in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of this Corporation or of such other
business organization or association in which he served at the
Corporation's request, and that, in any matter which is the subject of a
criminal action, suit or proceeding, he had no reasonable cause to believe
that his conduct was unlawful and in an action by or in the right of the
Corporation to procure a judgment in its favor that such person was not
and has not been adjudicated to have been negligent or guilty of
misconduct in the performance of his duty to the Corporation or to such
other business organization or association; or (b) if the number of all
disinterested directors would not be sufficient at any time to constitute
a quorum, or if the number of disinterested directors present at two
consecutive meetings of the Board has not been sufficient to constitute a
quorum, a determination to the same effect as set forth in the foregoing
clause (a) shall be made in a written opinion by independent legal counsel
other than an attorney, or a firm having association with it an attorney,
who has been retained by or who has performed services for this
Corporation, or any person to be indemnified within the past five years,
or by the majority vote of the policyholders, or by the Court of Common
Pleas or the court in which such action, suit or proceeding was brought.
Prior to making any such
-5-
<PAGE> 38
determination, the Board of Directors shall first have received the
written opinion of General Counsel that a number of directors sufficient
to constitute a quorum, as named therein, are disinterested directors. Any
director who is a party to or threatened with the action, suit or
proceeding in question, or any related action, suit or proceeding, or has
had or has an interest therein adverse to that of the Corporation, or who
for any other reason has been or would be affected thereby, shall not be
deemed a disinterested director and shall not be qualified to vote on the
question of indemnification. Anything in this Article to the contrary
notwithstanding, if a judicial or administrative body determines as part
of the settlement of any action, suit or proceeding that the Corporation
should indemnify a director, officer or employee for the amount of the
settlement, the Corporation shall so indemnify such person in accordance
with such determination. Expenses incurred with respect to any action,
suit or proceeding which may qualify for indemnification may be advanced
by the Corporation prior to final disposition thereof upon receipt of an
undertaking by or on behalf of the director, officer or employee to repay
such amount if it is ultimately determined hereunder that he is not
entitled to indemnification or to the extent that the amount so advanced
exceeds the indemnification to which he is ultimately determined to be
entitled.
ITEM 29. PRINCIPAL UNDERWRITERS
The principal underwriter of the Registrant's securities is presently The O.N.
Equity Sales Company ("ONESCO"). ONESCO is a wholly-owned subsidiary of the
Depositor. ONESCO also serves as the principal underwriter of securities issued
by Ohio National Variable Accounts A and B, other separate accounts of the
Depositor which are registered as unit investment trusts; and Ohio National
Variable Account R, a separate account of the Depositor's subsidiary, Ohio
National Life Assurance Corporation, which separate account is also registered
as a unit investment trust; and ONE Fund, Inc., an open-end investment company
of the management type.
The directors and officers of ONESCO are:
<TABLE>
<CAPTION>
Name Positions with Underwriter
---- --------------------------
<S> <C>
David B. O'Maley Chairman and Director
Donald J. Zimmerman President and Director
David G. McClure Vice President, Chief Operating Officer and Director
James I. Miller II Vice President and Director
Ronald L. Benedict Secretary and Director
Robert M. DiTommaso Vice President
Thomas MacDonald Vice President
Kenneth M. Jaeger Treasurer
Amy D. Starkey Compliance Officer
Barbara A. Hopewell Assistant Secretary
</TABLE>
Pending receipt of necessary regulatory approvals, Ohio National Equities, Inc.
("ONE,Inc."), a new wholly-owned subsidiary of the Depositor, will become the
principal underwriter of the Registrant's securities as well as those of the
other entities listed above. The directors and officers of ONE, Inc. are:
<TABLE>
<CAPTION>
Name Position with ONE, Inc.
---- -----------------------
<S> <C>
David B. O'Maley Chairman and Director
Donald J. Zimmerman President and Director
David G. McClure Vice President, Chief Operating Officer and Director
Trudy K. Backus Vice President and Director
Tom D. Bowman Director
Ronald L. Benedict Secretary
Kenneth M. Jaeger Treasurer
</TABLE>
-6-
<PAGE> 39
<TABLE>
<S> <C>
Amy D. Starkey Compliance Officer
Barbara A. Hopewell Assistant Secretary
</TABLE>
The principal business address of each of the foregoing is 237 William Howard
Taft Road, Cincinnati, Ohio 45219.
During the last fiscal year, ONESCO received the following commissions and other
compensation, directly or indirectly, from the Registrant:
<TABLE>
<CAPTION>
Net Underwriting Compensation
Discounts and on Redemption Brokerage
Commissions or Annuitization Commissions Compensation
- ----------- ---------------- ----------- ------------
<S> <C> <C> <C> <C>
$79,218 None None None
</TABLE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The books and records of the Registrant which are required under Section 31(a)
of the 1940 Act and Rules thereunder are maintained in the possession of the
following persons:
(1) Journals and other records of original entry:
The Ohio National Life Insurance Company ("Depositor")
237 William Howard Taft Road
Cincinnati, Ohio 45219
The Provident Bank ("Custodian")
One East Fourth Street
Cincinnati, Ohio 45269
(2) General and auxiliary ledgers:
Depositor and Custodian
(3) Securities records for portfolio securities:
Custodian
(4) Corporate charter, by-laws and minute books:
Registrant has no such documents.
(5) Records of brokerage orders:
Not applicable.
(6) Records of other portfolio transactions:
Custodian
(7) Records of options:
Not applicable
(8) Records of trial balances:
-7-
<PAGE> 40
Custodian
(9) Quarterly records of allocation of brokerage orders and commissions:
Not applicable
(10) Records identifying persons or group authorizing portfolio
transactions:
Depositor
(11) Files of advisory materials:
Not applicable
(12) Other records
Custodian and Depositor
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
Not applicable.
-8-
<PAGE> 41
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
l940, the registrant, Ohio National Variable Account D, certifies that it has
caused this post-effective amendment to the registration statement to be signed
on its behalf in the City of Cincinnati and the State of Ohio on this 28th day
of February, 1996.
OHIO NATIONAL VARIABLE ACCOUNT D
(Registrant)
By THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Depositor)
By /s/Donald J. Zimmerman
---------------------------------------------
Donald J. Zimmerman, Senior Vice President,
Insurance Operations
Attest:
/s/Ronald L. Benedict
- ------------------------------------
Ronald L. Benedict
Second Vice President and Counsel
and Assistant Secretary
As required by the Securities Act of 1933 and the Investment Company Act of
l940, the depositor, The Ohio National Life Insurance Company, has caused this
post-effective amendment to the registration statement to be signed on its
behalf in the City of Cincinnati and the State of Ohio on the 28th day of
February, 1996.
THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Depositor)
By /s/Donald J. Zimmerman
---------------------------------------------
Donald J. Zimmerman, Senior Vice President,
Insurance Operations
Attest:
/s/Ronald L. Benedict
- ------------------------------------
Ronald L. Benedict
Second Vice President and Counsel
and Assistant Secretary
<PAGE> 42
As required by the Securities Act of 1933, this post-effective amendment to the
registration statement has been signed below by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
/s/David B. O'Maley Chairman, President, February 28, 1996
- -------------------------- Chief Executive Officer
David B. O'Maley and Director
*/s/Dale P. Brown Director February 28, 1996
- --------------------------
Dale P. Brown
*/s/Jack E. Brown Director February 28, 1996
- --------------------------
Jack E. Brown
*/s/William R. Burleigh Director February 28, 1996
- --------------------------
William R. Burleigh
*/s/Victoria B. Buyniski Director February 28, 1996
- --------------------------
Victoria B. Buyniski
*/s/Raymond R. Clark Director February 28, 1996
- --------------------------
Raymond R. Clark
*/s/Alvin H. Crawford Director February 28, 1996
- --------------------------
Alvin H. Crawford
*/s/Bannus B. Hudson Director February 28, 1996
- --------------------------
Bannus B. Hudson
*/s/Daniel W. LeBlond Director February 28, 1996
- --------------------------
Daniel W. LeBlond
*/s/Charles S. Mechem, Jr. Director February 28, 1996
- --------------------------
Charles S. Mechem, Jr.
*/s/James W. Nethercott Director February 28, 1996
- --------------------------
James W. Nethercott
*/s/Oliver W. Waddell Director February 28, 1996
- --------------------------
Oliver W. Waddell
*/s/Bradley L. Warnemunde Chairman Emeritus and February 28, 1996
- -------------------------- Director
Bradley L. Warnemunde
</TABLE>
<PAGE> 43
<TABLE>
<S> <C> <C>
/s/Donald J. Zimmerman Senior Vice President, February 28, 1996
- -------------------------- Insurance Operations &
Donald J. Zimmerman Secretary and Director
*By /s/Donald J. Zimmerman
-----------------------
Donald J. Zimmerman, Attorney in Fact pursuant to Powers of Attorney, copies
of which are filed as exhibits to the Registrant's registration statement.
</TABLE>
<PAGE> 44
INDEX OF CONSENTS AND EXHIBITS
<TABLE>
<CAPTION>
Page Number in
Exhibit Sequential
Number Description Numbering System
- ------ ----------- ----------------
<S> <C> <C>
Consent of KPMG Peat Marwick LLP
(13) Computation of Performance Data
</TABLE>
<PAGE> 45
CONSENTS
<PAGE> 46
INDEPENDENT AUDITORS' CONSENT
-----------------------------
The Board of Directors
The Ohio National Life Insurance Company:
We consent to the inclusion of our report included herein and to the reference
to our firm under the heading "Independent Certified Public Accountants"
in the Statement of Additional Information.
KPMG Peat Marwick LLP
February 29, 1996
<PAGE> 1
EXHIBIT (13)
COMPUTATION OF PERFORMANCE DATA
<PAGE> 2
Annual Report Calculations
Equity
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/68 10.000000 8.82% 8.88% 9.18% 8.70% 1267.64% 10.17%
12/31/69 1.0090 10.090000
12/31/70 1.0763 10.859867
12/31/71 1.0766 11.691733
12/31/72 1.1340 13.258425
12/31/73 0.8989 11.917998
12/31/74 0.8047 9.590413
12/31/75 1.1985 11.494110
12/31/76 1.1680 13.425121
12/31/77 0.9116 12.238340
12/31/78 1.0726 13.126844
12/31/79 1.1587 15.210074
12/31/80 1.4147 21.517691
12/31/81 0.9707 20.887223
12/31/82 1.2874 26.890211
12/31/83 1.1849 31.862211
12/31/84 0.9912 31.581823
12/31/85 1.2369 39.063557 11.96% 12.02% 12.33% 11.83% 250.11% 13.35%
12/31/86 1.2331 48.169272
12/31/87 1.1082 53.381187
12/31/88 1.1503 61.404380
12/31/89 1.2321 75.656336
12/31/90 0.9614 72.736002 12.07% 12.13% 12.44% 11.94% 88.03% 13.46%
12/31/91 1.2018 87.414127
12/31/92 1.0754 94.005152
12/31/93 1.1409 107.250478
12/31/94 1.0025 107.518604 25.65% 25.71% 26.07% 25.51% 27.20% 27.20%
12/31/95 1.2720 136.763665
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
Money Market
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
7/31/80 10.000000 6.25% 6.31% 6.89% 6.13% 208.04% 7.57%
12/31/80 1.0483 10.483000
12/31/81 1.1625 12.186488
12/31/82 1.1227 13.681770
12/31/83 1.0861 14.859770
12/31/84 1.1011 16.362093
12/31/85 1.0775 17.630155 4.44% 4.50% 5.23% 4.33% 74.72% 5.74%
12/31/86 1.0630 18.740855
12/31/87 1.0628 19.917780
12/31/88 1.0713 21.337918
12/31/89 1.0889 23.234859
12/31/90 1.0789 25.068089 2.93% 2.99% 3.28% 2.82% 22.88% 4.21%
12/31/91 1.0554 26.456861
12/31/92 1.0317 27.295544
12/31/93 1.0274 28.043442
12/31/94 1.0400 29.165179 4.32% 4.38% 4.67% 4.21% 5.62% 5.62%
12/31/95 1.0562 30.804262
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
Bond
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/02/82 10.000000 7.70% 7.77% 8.07% 7.59% 212.58% 9.05%
12/31/82 1.0060 10.060000
12/31/83 1.0263 10.324578
12/31/84 1.1215 11.579014
12/31/85 1.2153 14.071976 6.98% 7.04% 7.34% 6.86% 122.13% 8.31%
12/31/86 1.1249 15.829566
12/31/87 1.0081 15.957785
12/31/88 1.0674 17.033340
12/31/89 1.1071 18.857611
12/31/90 1.0782 20.332276 7.64% 7.70% 8.00% 7.53% 53.74% 8.98%
12/31/91 1.1296 22.967339
12/31/92 1.0754 24.699076
12/31/93 1.1069 27.339407
12/31/94 0.9616 26.289574 17.44% 17.50% 17.83% 17.31% 18.90% 18.90%
12/31/95 1.1890 31.258304
- ------------------------------------------------------------------------------------------
</TABLE>
Omni
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9/10/84 10.000000 9.31% 9.38% 10.22% 9.20% 232.74% 11.22%
12/31/84 1.0374 10.374000
12/31/85 1.1559 11.991307
12/31/86 1.1794 14.142547 8.78% 8.84% 9.75% 8.66% 135.28% 10.75%
12/31/87 0.9832 13.904952
12/31/88 1.1503 15.994867
12/31/89 1.1546 18.467673
12/31/90 1.0191 18.820405 10.69% 10.75% 11.07% 10.58% 76.80% 12.07%
12/31/91 1.1815 22.236309
12/31/92 1.0860 24.148632
12/31/93 1.1285 27.251731
12/31/94 0.9947 27.107297 21.25% 21.31% 21.66% 21.12% 22.75% 22.75%
12/31/95 1.2275 33.274207
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
International
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5/03/93 10.000000 15.41% 15.48% 15.80% 15.29% 51.38% 16.87%
12/31/93 1.2496 12.496000
12/31/94 1.0807 13.504427 10.73% 10.79% 11.10% 10.61% 12.10% 12.10%
12/31/95 1.1210 15.138463
- ------------------------------------------------------------------------------------------
</TABLE>
Small Cap
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4/30/94 10.000000 31.48% 31.56% 31.92% 31.34% 61.29% 33.18%
12/31/94 1.2126 12.126000 31.38% 31.44% 31.82% 31.24% 33.01% 33.01%
12/31/95 1.3301 16.128793
- ------------------------------------------------------------------------------------------
</TABLE>
Capital Appreciation
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4/30/94 10.000000 14.59% 14.67% 14.97% 14.46% 28.17% 16.04%
12/31/94 1.0453 10.453000 21.12% 21.18% 21.52% 20.98% 22.62% 22.62%
12/31/95 1.2262 12.817469
- ------------------------------------------------------------------------------------------
</TABLE>
Aggressive Growth
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 10.000000 25.78% 25.84% 26.10% 25.68% 26.95% 37.53%
12/31/95 1.2695 12.695000
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
Global Contrarian
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP+ Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 10.000000 7.89% 7.95% 8.16% 7.80% 8.89% 12.05%
12/31/95 1.0889 10.889000
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000927140
<NAME> OHIO NATIONAL VARIABLE ACCOUNT
<SERIES>
<NUMBER> 1
<NAME> EQUITY
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 155,660
<INVESTMENTS-AT-VALUE> 162,073
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 162,073
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 13,287
<SHARES-COMMON-PRIOR> 0
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT D
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT D
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<NAME> OHIO NATIONAL VARIABLE ACCOUNT D
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