<PAGE>
Registration No. 33- 83604
811-8746
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM
N-8B-2
Post-Effective Amendment No. 4
ALLMERICA SELECT SEPARATE ACCOUNT II
OF ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(Exact Name of Registrant)
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
440 Lincoln Street
Worcester MA 01653
(Address of Principal Executive Office)
Abigail M. Armstrong, Esq.
440 Lincoln Street
Worcester MA 01653
(Name and Address of Agent for Service of Process)
It is proposed that this filing will become effective:
X immediately upon filing pursuant to paragraph (b)
---
on (date) pursuant to paragraph (b)
---
60 days after filing pursuant to paragraph (a)(1)
---
on (date) pursuant to paragraph (a)(1)
---
on (date) pursuant to paragraph (a)(2) of Rule 485.
---
this post-effective amendment designates a new effective
--- date for a previously filed post-effective amendment.
FLEXIBLE PREMIUM VARIABLE LIFE
Pursuant to Reg. Section 270.24f-2 of the Investment Company Act of 1940 ("the
1940 Act"), Registrant hereby declares that an indefinite amount of its
securities is being registered under the Securities Act of 1933 ("the 1933
Act"). The 24f-2 Notice for the issuer's fiscal year ended December 31, 1997
will be filed on or before February 27, 1998.
<PAGE>
<TABLE>
<CAPTION>
RECONCILIATION AND TIE BETWEEN ITEMS
IN FORM N-8b-2 AND THE PROSPECTUS
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
- ----------- ---------------------
<S> <C>
1. . . . . . . . Cover Page
2. . . . . . . . Cover Page
3. . . . . . . . Not Applicable
4. . . . . . . . Distribution
5. . . . . . . . Allmerica Financial; The Variable Account
6. . . . . . . . The Variable Account
7. . . . . . . . Not Applicable
8. . . . . . . . Not Applicable
9. . . . . . . . Legal Proceedings
10 . . . . . . . Summary; Description of the Company, The Variable Account, the
Trust, VIP and T. Rowe Price; The Policy; Policy Termination
and Reinstatement; Other Policy Provisions
11 . . . . . . . Summary; The Trust; VIP; T. Rowe Price; Investment Objectives
and Policies
12 . . . . . . . Summary; The Trust; VIP; T. Rowe Price
13 . . . . . . . Summary; The Trust; VIP; T. Rowe Price; Investment Advisory
Services to the Trust; Investment Advisory Services to VIP;
Investment Advisory Services to T. Rowe Price; Charges and
Deductions
14 . . . . . . . Summary; Application for a Policy
15 . . . . . . . Summary; Application for a Policy; Payments; Allocation of
Net Payments
16 . . . . . . . The Variable Account; The Trust; VIP; T. Rowe Price;
Payments; Allocation of Net Payments
17 . . . . . . . Summary; Surrender; Partial Withdrawal; Charges and
Deductions; Policy Termination and Reinstatement
18 . . . . . . . The Variable Account; The Trust; VIP; T. Rowe Price; Payments
19 . . . . . . . Reports; Voting Rights
20 . . . . . . . Not Applicable
21 . . . . . . . Summary; Policy Loans; Other Policy Provisions
22 . . . . . . . Other Policy Provisions
23 . . . . . . . Not Required
24 . . . . . . . Other Policy Provisions
25 . . . . . . . Allmerica Financial
26 . . . . . . . Not Applicable
27 . . . . . . . Allmerica Financial
28 . . . . . . . Directors and Principal Officers of the Company
29 . . . . . . . Allmerica Financial
30 . . . . . . . Not Applicable
31 . . . . . . . Not Applicable
32 . . . . . . . Not Applicable
33 . . . . . . . Not Applicable
34 . . . . . . . Not Applicable
<PAGE>
<CAPTION>
<S> <C>
35 . . . . . . . Distribution
36 . . . . . . . Not Applicable
37 . . . . . . . Not Applicable
38 . . . . . . . Summary; Distribution
39 . . . . . . . Summary; Distribution
40 . . . . . . . Not Applicable
41 . . . . . . . Allmerica Financial, Distribution
42 . . . . . . . Not Applicable
43 . . . . . . . Not Applicable
44 . . . . . . . Payments; Policy Value and Cash Surrender Value
45 . . . . . . . Not Applicable
46 . . . . . . . Policy Value and Cash Surrender Value; Federal Tax
Considerations
47 . . . . . . . Allmerica Financial
48 . . . . . . . Not Applicable
49 . . . . . . . Not Applicable
50 . . . . . . . The Variable Account
51 . . . . . . . Cover Page; Summary; Charges and Deductions; The Policy;
Policy Termination and Reinstatement; Other Policy Provisions
52 . . . . . . . Addition, Deletion or Substitution of Investments
53 . . . . . . . Federal Tax Considerations
54 . . . . . . . Not Applicable
55 . . . . . . . Not Applicable
56 . . . . . . . Not Applicable
57 . . . . . . . Not Applicable
58 . . . . . . . Not Applicable
59 . . . . . . . Not Applicable
</TABLE>
<PAGE>
This Post-Effective Amendment No. 4 under the Securities Act of 1933 is being
filed for the purposes of adding a supplement to the Allmerica Select
Separate Account II of Allmerica Financial Life Insurance and Annuity
Company dated May 1, 1997 and to generally update corporate information for
the Company and the Registrant. All other pertinent information regarding
this Registration Statement, including the Prospectus was previously filed in
Registrant's Post-Effective Amendment No. 3 on April 30, 1997 and is
incorporated by reference herein.
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED FEBRUARY 10, 1998 TO PROSPECTUS DATED MAY 1, 1997
***
Effective February 10, 1998, three additional Sub-Accounts will be available
under the Contract. The Sub-Accounts will invest exclusively in shares of
the Select Emerging Markets Fund, the Select Value Opportunity Fund and the
Select Strategic Growth Fund of the Allmerica Investment Trust. As such, the
following information supplements the corresponding sections of the
Prospectus. Please consult the Prospectus for the full text of each
supplemented section, and the prospectus for Allmerica Investment Trust for
more information about the new Funds.
***
The number "eleven" is changed to "fourteen" in the first sentence under
"What are my Investment Choices" on page 8 of the Prospectus and the
following are added as the first, sixth, and eighth funds:
- - Select Emerging Markets Fund
Managed by Schroder Capital Management International Inc.
- - Select Value Opportunity Fund
Managed by Cramer Rosenthal McGlynn, LLC
- - Select Strategic Growth Fund
Managed by Cambiar Investors, Inc.
***
The listing of funds on pages 1 and 9 of the prospectus is amended by adding
the following:
Fund Investment Adviser
---- ------------------
Select Emerging Markets Fund Schroder Capital Management International Inc.
Select Value Opportunity Fund Cramer Rosenthal McGlynn, LLC
Select Strategic Growth Fund Cambiar Investors, Inc.
<PAGE>
***
The second paragraph under "WHO ARE THE INVESTMENT ADVISERS AND HOW ARE THEY
SELECTED?" on page 9 and the third paragraph under "THE TRUST" on page 18 are
amended to read in their entirety as follows:
Allmerica Investment Management Company, Inc. ("Manager"),
an affiliate of the Company is the investment manager of the
Trust. The Manager has entered into agreements with investment
advisors ("Sub-Advisers") selected by the Manager and Trustees
in consultation with RogersCasey. The Sub-Advisers (other
than Allmerica Asset Management, Inc.) are not affiliated with
the Company or the Trust. In addition, Rogers, Casey Sponsor
Services, Inc. a wholly owned subsidiary of RogersCasey,
provides asset allocation recommendations that may be utilized
at no cost by registered representatives who are assisting
clients in developing diversified portfolios.
***
The Fund Expenses table on page 11 of the Prospectus is deleted and the
following inserted in its place:
FUND EXPENSES: The following table shows the expenses (unaudited) of the
Underlying Funds as a percentage of average net assets for the year ended
December 31, 1997.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Other Fund
Management Expenses (After Any Total Fund
Fund Fee Applicable Reimbursements) Expenses
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Select Emerging Markets Fund+++ . . . . . . . . . 1.35% 0.65%(1) 2.00%
Select International Equity Fund . . . . . . . . 0.92%* 0.20%(1) 1.12%(3)
T. Rowe Price International Stock Portfolio . . . 1.05% 0.00% 1.05%
Select Aggressive Growth Fund . . . . . . . . . . 0.89%* 0.09%(1) 0.98%(3)
Select Capital Appreciation Fund. . . . . . . . . 0.95%* 0.15%(1) 1.10%
Select Value Opportunity Fund . . . . . . . . . . 0.90%** 0.14%(1) 1.04%(3)
Select Growth Fund . . . . . . . . . . . . . . . 0.85% 0.08%(1) 0.93%(3)
Select Strategic Growth Fund+++ . . . . . . . . . 0.85% 0.13%(1) 0.98%
Fidelity VIP Growth Portfolio . . . . . . . . . . 0.60% 0.09% 0.69%(2)
Select Growth and Income Fund . . . . . . . . . . 0.70%* 0.07%(1) 0.77%(3)
Fidelity VIP Equity-Income Portfolio . . . . . . 0.50% 0.08% 0.58%(2)
Fidelity VIP High Income Portfolio . . . . . . . 0.59% 0.12% 0.71%
Select Income Fund . . . . . . . . . . . . . . . 0.58%* 0.13%(1) 0.71%
Money Market Fund . . . . . . . . . . . . . . . . 0.27% 0.08%(1) 0.35%
- ------------------------------------------------------------------------------------------------------
</TABLE>
+++ These Portfolios commenced operations in February 1998. Expenses shown
are annualized and are based on estimated amounts for the current fiscal
year. Actual expenses may be greater or less than shown.
* Effective September 1, 1997, the management fee rates for these funds were
revised. The management fees ratios shown in the table above have been
adjusted to assume that the revised rates took effect on January 1, 1997.
2
<PAGE>
** The Select Value Opportunity Fund was formerly known as the "Small-Mid Cap
Value Fund." Effective April 1, 1997, the management fee rate of the former
Small-Mid Cap Value Fund was revised. In addition, effective April 1, 1997
and until further notice, the management fee for this fund has been
voluntarily limited to an annual rate of 0.90% of average daily net assets.
The management fee ratio shown above for the Select Value Opportunity Fund
has been adjusted to assume that the revised rate and the voluntary
limitation took effect on January 1, 1997. Had the voluntary limitation of
0.90% not been effective on January 1, 1997 and had the management fee rate
revision discussed above been effective on January 1, 1997, the management
fee ratio and the total fund expense ratio would have been 0.95% and 1.09%,
respectively.
(1) Until further notice, Allmerica Investment Management Company, Inc.
("Manager"), under the Management Agreement with Allmerica Investment Trust,
has declared a voluntary expense limitation of 1.50% of average net assets
for Select International Equity Fund, 1.35% for Select Aggressive Growth Fund
and Select Capital Appreciation Fund, 1.25% for Select Value Opportunity
Fund, 1.20% for Select Strategic Growth and Select Growth Fund, 1.10% for
Select Growth and Income Fund, 1.00% for Select Income Fund and 0.60% for
Money Market Fund. In addition, the Manager has agreed to waive voluntarily
its management fee to the extent that expenses of the Select Emerging Markets
Fund exceed 2.00% of the Fund's average daily assets, except that such waiver
shall not exceed the net amount of management fees earned by the Manager from
the fund after subtracting fees paid by the Manager to Schroder Capital
Management International Inc. for sub-advisory fees. The total operating
expenses of the funds of the Trust were less than their respective expense
limitations throughout 1997. The declaration of a voluntary expense
limitation in any year does not bind Allmerica Investments to declare future
expense limitations with respect to these funds.
(2) A portion of the brokerage commissions the Portfolio paid was used to
reduce Fund expenses. Including these reductions, total operating expenses
would have been 0.57% for the Fidelity VIP Equity-Income Portfolio and 0.67%
for the Fidelity VIP Growth Portfolio.
(3) These Funds have entered into agreements with brokers whereby the brokers
rebate a portion of commissions. Had these amounts been treated as
reductions of expenses, the total operating expenses would have been 1.10%
for Select International Equity Fund, 0.91% for Select Growth Fund, 0.74% for
Select Growth and Income Fund, 0.93% for Select Aggressive Growth, and 0.98%
for Select Value Opportunity Fund.
***
3
<PAGE>
***
The following summaries of investment objectives and policies are added as
the first, sixth and eighth summaries respectively under "INVESTMENT
OBJECTIVES AND POLICIES" beginning on page 19 of the Prospectus:
SELECT EMERGING MARKETS FUND -- seeks long-term growth of capital by
investing in the world's emerging markets.
SELECT VALUE OPPORTUNITY FUND -- seeks long-term growth of capital
by investing primarily in a diversified portfolio of common stocks
of small and mid-size companies, whose securities at the time of
purchase are considered by the Sub-Adviser to be undervalued.
SELECT STRATEGIC GROWTH FUND -- seeks long-term growth of capital by
investing primarily in common stocks of established companies.
The following information is added to the next-to-last paragraph under
"INVESTMENT ADVISORY SERVICES" on page 21 of the Prospectus:
The Manager's fee, computed daily at an annual rate based on the
average daily net asset value of the Fund, will be 1.35% for Select
Emerging Markets Fund and 0.85% for Select Strategic Growth Fund.
For the Select Value Opportunity Fund, the fee will be 1.00% for net
asset value up to $100,000,000; 0.85% on the next $150,000,000;
0.80% on the next $250,000,000; 0.75% on the next $250,000,000 and
0.70% on the remainder.
***
Footnote 14. SUBSEQUENT EVENT (UNAUDITED) under "Notes to Financial
Statements" on page F-17 is deleted and replaced in its entirety with the
following:
On April 14, 1997, the Company entered into an agreement in principle to
transfer the Company's individual disability income business under a 100%
coinsurance agreement to Metropolitan Life Insurance Company. The coinsurance
agreement became effective October 1, 1997. The transaction has resulted in
the recognition of a $53.9 million pre-tax loss in the first quarter of 1997.
In late July 1997, a lawsuit was instituted in Louisiana against Allmerica
Financial Corporation and certain of its subsidiaries, including the Company,
by individual plaintiffs alleging fraud, unfair or deceptive acts, breach of
contracts, misrepresentations and related claims in the sale of life
insurance policies. In October 1997, plaintiffs voluntarily dismissed the
Louisiana suit and refiled the action in Federal District Court in Worcester,
Massachusetts. The plaintiffs seek to be certified as a class. The case is in
the early stages of discovery and the Company is evaluating the claims.
Although the Company believes it has meritorious defenses to plaintiff's
claims, there can be no assurance that the claim will be resolved on a basis
which is satisfactory to the Company.
***
Following are unaudited financial statements for the Select VEL Separate
Account and the Company for the nine-month period ended September 30, 1997.
Supplement Dated February 10, 1998
4
<PAGE>
premium = $2,000
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
SELECT VARIABLE LIFE POLICY
<TABLE>
<CAPTION>
MALE NON-SMOKER AGE 30
SPECIFIED FACE AMOUNT = $100,000
SUM INSURED OPTION 2
BASED ON CURRENT MONTHLY INSURANCE PROTECTION
CHARGES WITHOUT RIDERS
Premiums Hypothetical 0% Hypothetical 6% Hypothetical 12%
Paid Plus Gross Investment Return Gross Investment Return Gross Investment Return
Interest ----------------------- ----------------------- -----------------------
Policy At 5% Surrender Policy Death Surrender Policy Death Surrender Policy Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,100 667 1,744 101,744 777 1,854 101,854 888 1,965 101,965
2 4,305 2,380 3,457 103,457 2,710 3,788 103,788 3,054 4,131 104,131
3 6,620 4,198 5,140 105,140 4,860 5,803 105,803 5,577 6,520 106,520
4 9,051 5,986 6,794 106,794 7,096 7,904 107,904 8,345 9,153 109,153
5 11,604 7,734 8,407 108,407 9,408 10,082 110,082 11,370 12,043 112,043
6 14,284 9,441 9,980 109,980 11,801 12,340 112,340 14,679 15,217 115,217
7 17,098 11,121 11,525 111,525 14,290 14,694 114,694 18,313 18,717 118,717
8 20,053 12,763 13,032 113,032 16,867 17,136 117,136 22,293 22,562 122,562
9 23,156 14,365 14,500 114,500 19,535 19,670 119,670 26,655 26,789 126,789
10 26,414 15,931 15,931 115,931 22,298 22,298 122,298 31,437 31,437 131,437
11 29,834 17,345 17,345 117,345 25,057 25,057 125,057 36,592 36,592 136,592
12 33,426 18,720 18,720 118,720 27,920 27,920 127,920 42,265 42,265 142,265
13 37,197 20,056 20,056 120,056 30,890 30,890 130,890 48,510 48,510 148,510
14 41,157 21,351 21,351 121,351 33,971 33,971 133,971 55,383 55,383 155,383
15 45,315 22,604 22,604 122,604 37,166 37,166 137,166 62,949 62,949 162,949
16 49,681 23,820 23,820 123,820 40,485 40,485 140,485 71,284 71,284 171,284
17 54,265 24,991 24,991 124,991 43,922 43,922 143,922 80,458 80,458 180,458
18 59,078 26,125 26,125 126,125 47,492 47,492 147,492 90,567 90,567 190,567
19 64,132 27,221 27,221 127,221 51,199 51,199 151,199 101,706 101,706 201,706
20 69,439 28,278 28,278 128,278 55,046 55,046 155,046 113,978 113,978 217,698
Age 60 139,522 36,259 36,259 136,259 102,102 102,102 202,102 331,018 331,018 443,564
Age 65 189,673 38,090 38,090 138,090 132,367 132,367 232,367 549,309 549,309 670,157
Age 70 253,680 38,113 38,113 138,113 167,967 167,967 267,967 903,529 903,529 1,048,094
Age 75 335,370 35,266 35,266 135,266 208,864 208,864 308,864 1,480,061 1,480,061 1,583,665
</TABLE>
A-1
<PAGE>
premium = $2,000
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
SELECT VARIABLE LIFE POLICY
<TABLE>
<CAPTION>
MALE NON-SMOKER AGE 30
SPECIFIED FACE AMOUNT = $100,000
SUM INSURED OPTION 2
BASED ON GUARANTEED MONTHLY INSURANCE PROTECTION
CHARGES WITHOUT RIDERS
Premiums Hypothetical 0% Hypothetical 6% Hypothetical 12%
Paid Plus Gross Investment Return Gross Investment Return Gross Investment Return
Interest ----------------------- ----------------------- -----------------------
Policy At 5% Surrender Policy Death Surrender Policy Death Surrender Policy Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,100 664 1,741 101,741 774 1,852 101,852 885 1,962 101,962
2 4,305 2,372 3,449 103,449 2,702 3,779 103,779 3,045 4,122 104,122
3 6,620 4,182 5,124 105,124 4,843 5,785 105,785 5,558 6,501 106,501
4 9,051 5,960 6,768 106,768 7,066 7,874 107,874 8,312 9,120 109,120
5 11,604 7,695 8,369 108,369 9,363 10,036 110,036 11,317 11,990 111,990
6 14,284 9,388 9,927 109,927 11,736 12,275 112,275 14,600 15,138 115,138
7 17,098 11,052 11,455 111,455 14,201 14,605 114,605 18,200 18,604 118,604
8 20,053 12,674 12,943 112,943 16,749 17,019 117,019 22,138 22,407 122,407
9 23,156 14,256 14,391 114,391 19,384 19,519 119,519 26,447 26,582 126,582
10 26,414 15,799 15,799 115,799 22,109 22,109 122,109 31,166 31,166 131,166
11 29,834 17,183 17,183 117,183 24,817 24,817 124,817 36,237 36,237 136,237
12 33,426 18,531 18,531 118,531 27,628 27,628 127,628 41,815 41,815 141,815
13 37,197 19,832 19,832 119,832 30,534 30,534 130,534 47,939 47,939 147,939
14 41,157 21,098 21,098 121,098 33,551 33,551 133,551 54,678 54,678 154,678
15 45,315 22,318 22,318 122,318 36,672 36,672 136,672 62,083 62,083 162,083
16 49,681 23,493 23,493 123,493 39,900 39,900 139,900 70,222 70,222 170,222
17 54,265 24,623 24,623 124,623 43,242 43,242 143,242 79,169 79,169 179,169
18 59,078 25,698 25,698 125,698 46,688 46,688 146,688 88,996 88,996 188,996
19 64,132 26,731 26,731 126,731 50,257 50,257 150,257 99,805 99,805 199,805
20 69,439 27,710 27,710 127,710 53,940 53,940 153,940 111,683 111,683 213,314
Age 60 139,522 33,493 33,493 133,493 96,807 96,807 196,807 317,909 317,909 425,998
Age 65 189,673 32,226 32,226 132,226 121,420 121,420 221,420 520,322 520,322 634,793
Age 70 253,680 25,942 25,942 125,942 145,829 145,829 245,829 840,654 840,654 975,158
Age 75 335,370 11,579 11,579 111,579 165,998 165,998 265,998 1,349,832 1,349,832 1,449,832
</TABLE>
A-2
<PAGE>
premium = $4,200
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
SELECT VARIABLE LIFE POLICY
<TABLE>
<CAPTION>
MALE NONSMOKER, AGE 45
SPECIFIED FACE AMOUNT = $250,000
SUM INSURED OPTION 1
BASED ON GUARANTEED MONTHLY INSURANCE PROTECTION
CHARGES WITHOUT RIDERS
Premiums Hypothetical 0% Hypothetical 6% Hypothetical 12%
Paid Plus Gross Investment Return Gross Investment Return Gross Investment Return
Interest ----------------------- ----------------------- -----------------------
Policy At 5% Surrender Policy Death Surrender Policy Death Surrender Policy Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,410 0 3,171 250,000 65 3,387 250,000 282 3,604 250,000
2 9,041 2,911 6,238 250,000 3,543 6,870 250,000 4,202 7,529 250,000
3 13,903 6,274 9,185 250,000 7,523 10,434 250,000 8,878 11,789 250,000
4 19,008 9,531 12,027 250,000 11,602 14,097 250,000 13,941 16,437 250,000
5 24,368 12,667 14,746 250,000 15,767 17,846 250,000 19,415 21,494 250,000
6 29,996 15,679 17,343 250,000 20,020 21,683 250,000 25,341 27,005 250,000
7 35,906 18,560 19,808 250,000 24,355 25,603 250,000 31,763 33,010 250,000
8 42,112 21,297 22,129 250,000 28,766 29,597 250,000 38,722 39,553 250,000
9 48,627 23,882 24,298 250,000 33,245 33,661 250,000 46,271 46,687 250,000
10 55,469 26,298 26,298 250,000 37,782 37,782 250,000 54,466 54,466 250,000
11 62,652 28,582 28,582 250,000 42,424 42,424 250,000 63,427 63,427 250,000
12 70,195 30,751 30,751 250,000 47,211 47,211 250,000 73,298 73,298 250,000
13 78,114 32,809 32,809 250,000 52,155 52,155 250,000 84,187 84,187 250,000
14 86,430 34,757 34,757 250,000 57,265 57,265 250,000 96,217 96,217 250,000
15 95,161 36,587 36,587 250,000 62,546 62,546 250,000 109,520 109,520 250,000
16 104,330 38,297 38,297 250,000 68,008 68,008 250,000 124,247 124,247 250,000
17 113,956 39,882 39,882 250,000 73,659 73,659 250,000 140,571 140,571 250,000
18 124,064 41,335 41,335 250,000 79,506 79,506 250,000 158,685 158,685 250,000
19 134,677 42,646 42,646 250,000 85,557 85,557 250,000 178,812 178,812 250,000
20 145,821 43,808 43,808 250,000 91,823 91,823 250,000 201,208 201,208 250,000
Age 60 95,161 36,587 36,587 250,000 62,546 62,546 250,000 109,520 109,520 250,000
Age 65 145,821 43,808 43,808 250,000 91,823 91,823 250,000 201,208 201,208 250,000
Age 70 210,477 47,405 47,405 250,000 127,125 127,125 250,000 353,475 353,475 410,031
Age 75 292,995 45,138 45,138 250,000 170,558 170,558 250,000 601,316 601,316 643,408
</TABLE>
A-3
<PAGE>
premium = $4,200
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
SELECT VARIABLE LIFE POLICY
<TABLE>
<CAPTION>
MALE NON-SMOKER AGE 45
SPECIFIED FACE AMOUNT = $250,000
SUM INSURED OPTION 1
BASED ON GUARANTEED MONTHLY INSURANCE PROTECTION
CHARGES WITHOUT RIDERS
Premiums Hypothetical 0% Hypothetical 6% Hypothetical 12%
Paid Plus Gross Investment Return Gross Investment Return Gross Investment Return
Interest ----------------------- ----------------------- -----------------------
Policy At 5% Surrender Policy Death Surrender Policy Death Surrender Policy Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,410 0 3,165 250,000 60 3,382 250,000 277 3,599 250,000
2 9,041 2,896 6,223 250,000 3,527 6,854 250,000 4,185 7,512 250,000
3 13,903 6,236 9,147 250,000 7,482 10,393 250,000 8,835 11,746 250,000
4 19,008 9,475 11,970 250,000 11,538 14,033 250,000 13,870 16,365 250,000
5 24,368 12,588 14,667 250,000 15,674 17,753 250,000 19,306 21,385 250,000
6 29,996 15,551 17,214 250,000 19,866 21,530 250,000 25,159 26,823 250,000
7 35,906 18,396 19,643 250,000 24,151 25,398 250,000 31,509 32,756 250,000
8 42,112 21,099 21,931 250,000 28,507 29,338 250,000 38,384 39,216 250,000
9 48,627 23,638 24,054 250,000 32,914 33,330 250,000 45,823 46,239 250,000
10 55,469 25,990 25,990 250,000 37,355 37,355 250,000 53,870 53,870 250,000
11 62,652 27,790 27,790 250,000 41,482 41,482 250,000 62,273 62,273 250,000
12 70,195 29,388 29,388 250,000 45,642 45,642 250,000 71,448 71,448 250,000
13 78,114 30,790 30,790 250,000 49,843 49,843 250,000 81,498 81,498 250,000
14 86,430 31,974 31,974 250,000 54,071 54,071 250,000 92,520 92,520 250,000
15 95,161 32,918 32,918 250,000 58,313 58,313 250,000 104,627 104,627 250,000
16 104,330 33,600 33,600 250,000 62,554 62,554 250,000 117,955 117,955 250,000
17 113,956 33,996 33,996 250,000 66,783 66,783 250,000 132,665 132,665 250,000
18 124,064 34,085 34,085 250,000 70,989 70,989 250,000 148,947 148,947 250,000
19 134,677 33,815 33,815 250,000 75,139 75,139 250,000 167,016 167,016 250,000
20 145,821 33,109 33,109 250,000 79,181 79,181 250,000 187,125 187,125 250,000
Age 60 95,161 32,918 32,918 250,000 58,313 58,313 250,000 104,627 104,627 250,000
Age 65 145,821 33,109 33,109 250,000 79,181 79,181 250,000 187,125 187,125 250,000
Age 70 210,477 21,602 21,602 250,000 97,202 97,202 250,000 324,231 324,231 376,108
Age 75 292,995 0 (12,603) 250,000 107,255 107,255 250,000 542,791 542,791 580,786
</TABLE>
A-4
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
NOTE 1 -- ORGANIZATION
The Allmerica Select Separate Account II (Allmerica Select II) is a
separate investment account of Allmerica Financial Life Insurance and Annuity
Company (the Company), established on May 1, 1995 for the purpose of separating
from the general assets of the Company those assets used to fund the variable
portion of certain flexible premium variable life policies issued by the
Company. The Company is a wholly-owned subsidiary of First Allmerica Financial
Life Insurance Company (First Allmerica). First Allmerica is a wholly owned
subsidiary of Allmerica Financial Corporation (AFC). Under applicable insurance
law, the assets and liabilities of Allmerica Select II are clearly identified
and distinguished from the other assets and liabilities of the Company.
Allmerica Select II cannot be charged with liabilities arising out of any other
business of the Company.
Allmerica Select II is registered as a unit investment trust under the
Investment Company Act of 1940, as amended (the 1940 Act). Allmerica Select II
currently offers eleven Sub-Accounts. Each Sub-Account invests exclusively in a
corresponding investment portfolio of the Allmerica Investment Trust (the Trust)
managed by Allmerica Investment Management Company, Inc., a wholly-owned
subsidiary of First Allmerica or of the Variable Insurance Products Fund
(Fidelity VIP), managed by Fidelity Management & Research Company (FMR), or of
the T. Rowe Price International Series, Inc. (T. Rowe Price) managed by Rowe
Price-Fleming International, Inc.. The Trust, Fidelity VIP and T. Rowe Price
(the Funds) are open-end, diversified management investment companies registered
under the 1940 Act.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS -- Security transactions are recorded on the trade date.
Investments held by the Sub-Accounts are stated at the net asset value per share
of the respective investment portfolio of the Trust, Fidelity VIP, or T. Rowe
Price. Net realized gains and losses on securities sold are determined on the
average cost method. Dividends and capital gain distributions are recorded on
the ex-dividend date and are reinvested in additional shares of the respective
investment portfolio of the Trust, Fidelity VIP, or T. Rowe Price at net asset
value.
FEDERAL INCOME TAXES -- The Company is taxed as a "life insurance company"
under Subchapter L of the Internal Revenue Code and files a consolidated federal
income tax return with First Allmerica. The Company anticipates no tax liability
resulting from the operations of Allmerica Select II. Therefore, no provision
for income taxes has been charged against Allmerica Select II.
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SELECT SELECT SELECT
AGGRESSIVE GROWTH SELECT INTERNATIONAL
MONEY MARKET GROWTH SELECT GROWTH AND INCOME INCOME EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
30 6 7 8 10 11
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of Allmerica
Investment Trust . . . . . . . . . . . $ 2,552,281 $ 4,226,265 $ 3,270,247 $ 3,540,667 $ 1,216,716 $ 3,211,684
Investments in shares of Fidelity
Variable Insurance Products Funds . . - - - - - -
Investment in shares of T. Rowe Price
International Series, Inc. . . . . . . - - - - - -
- - - - - -
------------ ------------ ------------ ------------ ------------ ------------
Total assets . . . . . . . . . . . . . . 2,552,281 4,226,265 3,270,247 3,540,667 1,216,716 3,211,684
LIABILITIES:
Payable to Allmerica Financial Life
Insurance and Annuity Company . . . . . 494,004 - - - - -
------------ ------------ ------------ ------------ ------------ ------------
Net assets . . . . . . . . . . . . . . . $ 2,058,277 $ 4,226,265 $ 3,270,247 $ 3,540,667 $ 1,216,716 $ 3,211,684
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Net asset distribution by category:
Variable life policies . . . . . . . . . $2,058,277 $4,226,265 $3,270,247 $3,540,667 $1,216,716 $3,211,684
Value of investment by Allmerica
Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . - - - - - -
------------ ------------ ------------ ------------ ------------ ------------
$2,058,277 $4,226,265 $3,270,247 $3,540,667 $1,216,716 $3,211,684
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Units outstanding,
September 30, 1997 . . . . . . . . . . 2,288,594 2,222,088 1,784,961 2,037,537 1,022,224 2,167,942
Net asset value per unit,
September 30, 1997 . . . . . . . . . . $1.114402 $1.901934 $1.832111 $1.737719 $1.190264 $1.481444
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 1
<PAGE>
<TABLE>
<CAPTION>
SELECT FIDELITY FIDELITY FIDELITY T. ROWE PRICE
CAPITAL VIP VIP VIP INTERNATIONAL
APPRECIATION HIGH INCOME EQUITY-INCOME GROWTH STOCK
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
12 102 103 104 150
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of Allmerica
Investment Trust . . . . . . . . . . . $ 2,281,287
Investments in shares of Fidelity
Variable Insurance Products Funds . . . - $ 1,616,640 $ 2,753,132 $ 2,525,128
Investment in shares of T. Rowe Price
International Series, Inc. . . . . . . - - - - $ 2,162,240
- - - - -
------------ ------------ ------------ ------------ ------------
Total assets . . . . . . . . . . . . . . 2,281,287 1,616,640 2,753,132 2,525,128 2,162,240
LIABILITIES:
Payable to Allmerica Financial Life
Insurance and Annuity Company - - - - -
------------ ------------ ------------ ------------ ------------
Net assets . . . . . . . . . . . . . . . $ 2,281,287 $ 1,616,640 $ 2,753,132 $ 2,525,128 $ 2,162,240
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Net asset distribution by category:
Variable life policies . . . . . . . . . $2,281,287 $1,616,640 $2,753,132 $2,525,128 $2,162,240
Value of investment by Allmerica
Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . - - - - -
------------ ------------ ------------ ------------ ------------
$2,281,287 $1,616,640 $2,753,132 $2,525,128 $2,162,240
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Units outstanding,
September 30, 1997 . . . . . . . . . . 1,371,913 1,120,775 1,626,851 1,446,439 1,679,898
Net asset value per unit,
September 30, 1997 . . . . . . . . . . $1.662851 $1.442431 $1.692305 $1.745755 $1.287126
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 2
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF OPERATIONS
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY MARKET
SUB-ACCOUNT 30
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 110,161 $ 42,306 $ 3,310
EXPENSES :
Mortality and expense risk fee . . 13,453 5,083 543
Administrative expenses . . . . . 3,155 1,192 125
------------------- ------------------- -------------------
Total expenses . . . . . . . . 16,608 6,275 668
------------------- ------------------- -------------------
Net investment income (loss) . . . 93,553 36,031 2,642
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . - - -
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . - - -
Net unrealized gain (loss) . . . . - - -
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments . . - - -
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations . . . $ 93,553 $ 36,031 $ 2,642
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
SELECT AGGRESSIVE GROWTH
SUB-ACCOUNT 6
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 34,927 $ 90,988 $ -
EXPENSES:
Mortality and expense risk fee . . 11,832 4,965 104
Administrative expenses . . . . . 2,775 1,165 24
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 14,607 6,130 128
------------------- ------------------- -------------------
Net investment income (loss) . . . 20,320 84,858 (128)
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . (4,658) 13,851 4
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . (4,658) 13,851 4
Net unrealized gain (loss) . . . . 816,220 26,999 417
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 811,562 40,850 421
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 831,882 $ 125,708 $ 293
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
SELECT GROWTH
SUB-ACCOUNT 7
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 13,877 $ 160,313 $ 14
EXPENSES:
Mortality and expense risk fee . . 9,862 3,176 38
Administrative expenses . . . . . 2,313 745 9
------------------- ------------------- -------------------
Total expenses . . . . . . . . 12,175 3,921 47
------------------- ------------------- -------------------
Net investment income (loss) . . . 1,702 156,392 (33)
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . 1,026 13,278 11
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . 1,026 13,278 11
Net unrealized gain (loss) . . . . 499,871 (87,178) (892)
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 500,897 (73,900) (881)
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations . . . . $ 502,599 $ 82,492 $ (914)
------------------- ------------------- -------------------
------------------- ------------------- -------------------
</TABLE>
**Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 1
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF OPERATIONS (CONTINUED)
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SELECT
GROWTH AND INCOME
-----------------------------------------------------------------
SUB-ACCOUNT 8
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 54,885 $ 86,561 $ 6,087
EXPENSES:
Mortality and expense risk fee . . 11,420 3,438 115
Administrative expenses . . . . . 2,679 807 27
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 14,099 4,245 142
------------------- ------------------- -------------------
Net investment income (loss) . . . 40,786 82,316 5,945
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . . - - -
Net realized gain (loss) from
sales of investments. . . . . . . 12,658 886 783
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . 12,658 886 783
Net unrealized gain (loss) . . . . 370,122 24,966 (1,200)
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 382,780 25,852 (417)
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 423,566 $ 108,168 $ 5,528
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
SELECT
INCOME
SUB-ACCOUNT 10
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 50,836 $ 27,253 $ 1,445
EXPENSES:
Mortality and expense risk fee . . 4,960 2,513 63
Administrative expenses . . . . . 1,163 589 15
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 6,123 3,102 78
------------------- ------------------- -------------------
Net investment income (loss) . . . 44,713 24,151 1,367
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . . - - -
Net realized gain (loss) from
sales of investments. . . . . . . 1,725 (472) 140
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . 1,725 (472) 140
Net unrealized gain (loss) . . . . 15,558 (4,696) 187
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 17,283 (5,168) 327
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 61,996 $ 18,983 $ 1,694
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
SELECT
INTERNATIONAL EQUITY
SUB-ACCOUNT 11
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 17,959 $ 25,948 $ 621
EXPENSES:
Mortality and expense risk fee . . 10,391 3,547 67
Administrative expenses . . . . . 2,437 832 15
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 12,828 4,379 82
------------------- ------------------- -------------------
Net investment income (loss) . . . 5,131 21,569 539
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . . - - -
Net realized gain (loss) from
sales of investments. . . . . . . 14,584 654 537
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . 14,584 654 537
Net unrealized gain (loss) . . . . 155,655 116,537 533
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 170,239 117,191 1,070
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 175,370 $ 138,760 $ 1,609
------------------- ------------------- -------------------
------------------- ------------------- -------------------
</TABLE>
**Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 2
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF OPERATIONS (CONTINUED)
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SELECT CAPITAL
APPRECIATION
SUB-ACCOUNT 12
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ - $ 869 $ 1,079
EXPENSES:
Mortality and expense risk fee . . 6,831 2,261 95
Administrative expenses . . . . . 1,603 530 22
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 8,434 2,791 117
------------------- ------------------- -------------------
Net investment income (loss) . . . (8,434) (1,922) 962
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . (529) 577 2,120
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments . . . . . . . . (529) 577 2,120
Net unrealized gain (loss) . . . . 244,158 (1,192) 1,002
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 243,629 (615) 3,122
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 235,195 $ (2,537) $ 4,084
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
FIDELITY VIP HIGH INCOME
SUB-ACCOUNT 102
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 37,774 $ 12,398 $ -
EXPENSES:
Mortality and expense risk fee . . 4,482 1,532 58
Administrative expenses . . . . . 1,051 359 13
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 5,533 1,891 71
------------------- ------------------- -------------------
Net investment income (loss) . . . 32,241 10,507 (71)
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . 1,050 3,133 48
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments . . . . . . . . 1,050 3,133 48
Net unrealized gain (loss) . . . . 125,629 14,684 805
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 126,679 17,817 853
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 158,920 $ 28,324 $ 782
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
FIDELITY VIP EQUITY-INCOME
SUB-ACCOUNT 103
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 105,657 $ 6,708 $ 638
EXPENSES:
Mortality and expense risk fee . . 7,865 2,681 101
Administrative expenses . . . . . 1,844 629 23
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 9,709 3,310 124
------------------- ------------------- -------------------
Net investment income (loss) . . . 95,948 3,398 514
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . 10,060 1,871 453
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments . . . . . . . . 10,060 1,871 453
Net unrealized gain (loss) . . . . 244,166 59,082 5,154
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 254,226 60,953 5,607
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations . . . . $ 350,174 $ 64,351 $ 6,121
------------------- ------------------- -------------------
------------------- ------------------- -------------------
</TABLE>
**Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 3
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF OPERATIONS (CONTINUED)
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
FIDELITY VIP GROWTH
SUB-ACCOUNT 104
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ 45,423 $ 18,619 $ -
EXPENSES:
Mortality and expense risk fee . . 8,108 3,400 146
Administrative expenses . . . . . 1,902 797 34
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 10,010 4,197 180
------------------- ------------------- -------------------
Net investment income (loss) . . . 35,413 14,422 (180)
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . 6,173 (232) (4,864)
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . 6,173 (232) (4,864)
Net unrealized gain (loss) . . . . 331,657 45,024 (5,909)
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 337,830 44,791 (10,773)
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations. . . . . $ 373,243 $ 59,213 $ (10,953)
------------------- ------------------- -------------------
------------------- ------------------- -------------------
<CAPTION>
T. ROWE PRICE INTERNATIONAL STOCK
SUB-ACCOUNT 150
-----------------------------------------------------------------
FOR THE NINE FOR THE
MONTHS ENDED YEAR ENDED FOR THE PERIOD
9/30/97 (UNAUDITED) 12/31/96 5/1/95* TO 12/31/95
------------------- ------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . $ - $ 9,135 $ -
EXPENSES:
Mortality and expense risk fee . . 6,698 1,629 2
Administrative expenses . . . . . 1,572 382 -
------------------- ------------------- -------------------
Total expenses . . . . . . . . . 8,270 2,011 2
------------------- ------------------- -------------------
Net investment income (loss) . . . (8,270) 7,124 (2)
------------------- ------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain distributions from
portfolio sponsors . . . . . . . - - -
Net realized gain (loss) from
sales of investments . . . . . . 113,177 1,101 1
------------------- ------------------- -------------------
Net realized gain (loss) from
gain distributions and sales
of investments. . . . . . . . . 113,177 1,101 1
Net unrealized gain (loss) . . . . 58,135 30,684 47
------------------- ------------------- -------------------
Net realized and unrealized
gain (loss) on investments. . . 171,312 31,785 48
------------------- ------------------- -------------------
Net increase (decrease) in net
assets from operations . . . . $ 163,042 $ 38,909 $ 46
------------------- ------------------- -------------------
------------------- ------------------- -------------------
</TABLE>
**Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 4
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY MARKET
SUB-ACCOUNT 30
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 93,553 $ 36,031 $ 2,642
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . $ - - -
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . $ - - -
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 93,553 36,031 2,642
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,803,538 4,471,372 575,190
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,064) - -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . (175,499) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . (7,917,944) (2,298,619) (521,908)
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (215) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . (299,969) 2,172,538 53,482
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . (206,416) 2,208,569 56,124
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,264,693 56,124 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,058,277 $ 2,264,693 $ 56,124
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
SELECTAGGRESSIVE GROWTH
SUB-ACCOUNT 6
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 20,320 $ 84,858 $ (128)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . (4,658) 13,851 4
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . 816,220 26,999 417
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 831,882 125,708 293
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 957,573 824,503 127,557
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,791) (621) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . (128,973) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 1,126,770 301,449 75,007
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (292) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,940,579 1,125,039 202,764
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 2,772,461 1,250,747 203,057
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,453,804 203,057 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,226,265 $ 1,453,804 $ 203,057
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
SELECT GROWTH
SUB-ACCOUNT 7
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 1,702 $ 156,392 $ (33)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 1,026 13,278 11
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . 499,871 (87,178) (892)
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 502,599 82,492 (914)
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 955,059 618,908 126,681
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,100) (609) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . (121,690) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 820,437 287,047 3,418
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (281) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,650,706 905,065 130,299
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 2,153,305 987,557 129,385
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,116,942 129,385 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,270,247 $ 1,116,942 $ 129,385
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
*Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 1
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SELECT
GROWTH AND INCOME
SUB-ACCOUNT 8
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 40,786 $ 82,316 $ 5,945
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 12,658 886 783
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . 370,122 24,966 (1,200)
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . . 423,566 108,168 5,528
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804,934 759,907 37,091
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,491) 1 -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (138,776) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 1,235,674 203,435 104,713
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (283) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,898,341 963,060 142,004
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 2,321,907 1,071,228 147,532
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,218,760 147,532 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,540,667 $ 1,218,760 $ 147,532
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
SELECT
INCOME
SUB-ACCOUNT 10
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 44,713 $ 24,151 $ 1,367
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 1,725 (472) 140
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . 15,558 (4,696) 187
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . . 61,996 18,983 1,694
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466,584 321,729 32,948
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,649) (548) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (65,081) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 111,354 211,921 56,810
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (225) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 511,208 532,877 89,958
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 573,204 551,860 91,652
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643,512 91,652 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,216,716 $ 643,512 $ 91,652
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
SELECT
INTERNATIONAL EQUITY
SUB-ACCOUNT 11
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 5,131 $ 21,569 $ 539
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 14,584 654 537
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . 155,655 116,537 533
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . . 175,370 138,760 1,609
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,009,122 680,979 40,124
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,859) (636) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (124,731) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 888,435 399,355 8,218
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (262) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,767,967 1,079,436 48,542
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 1,943,337 1,218,196 50,151
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,347 50,151 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,211,684 $ 1,268,347 $ 50,151
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
*Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 2
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SELECT CAPITAL
APPRECIATION
SUB-ACCOUNT 12
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ (8,434) $ (1,922) $ 962
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . (529) 577 2,120
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . . 244,158 (1,192) 1,002
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 235,195 (2,537) 4,084
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 912,661 652,549 114,192
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,540) - -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (135,981) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 446,039 52,678 5,042
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (295) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,220,179 704,932 119,434
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 1,455,374 702,395 123,518
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825,913 123,518 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,281,287 $ 825,913 $ 123,518
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
VIP HIGH INCOME
SUB-ACCOUNT 102
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 32,241 $ 10,507 $ (71)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 1,050 3,133 48
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . . 125,629 14,684 805
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 158,920 28,324 782
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466,975 325,210 20,148
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,841) (578) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61,040) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 698,628 (54,018) 47,177
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (247) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,090,722 270,367 67,525
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 1,249,642 298,691 68,307
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366,998 68,307 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,616,640 $ 366,998 $ 68,307
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
FIDELITY VIP EQUITY-INCOME
SUB-ACCOUNT 103
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 95,948 $ 3,398 $ 514
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 10,060 1,871 453
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . . 244,166 59,082 5,154
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 350,174 64,351 6,121
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 857,890 530,169 21,784
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,467) (704) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102,243) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . . 740,689 193,606 94,830
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (268) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,492,869 722,803 116,814
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 1,843,043 787,154 122,935
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 910,089 122,935 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,753,132 $ 910,089 $ 122,935
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
*Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 3
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VIP GROWTH
SUB-ACCOUNT 104
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 35,413 $ 14,422 $ (180)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 6,173 (232) (4,864)
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . . 331,657 45,024 (5,909)
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 373,243 59,214 (10,953)
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776,853 673,958 105,504
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,740) (105) -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (134,261) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . 582,990 (2,435) 120,941
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - (281) 200
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,205,842 671,137 226,645
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 1,579,085 730,351 215,692
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 946,043 215,692 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,525,128 $ 946,043 $ 215,692
-------------- -------------- --------------
-------------- -------------- --------------
<CAPTION>
T. ROWE PRICE INTERNATIONAL STOCK
SUB-ACCOUNT 150
--------------------------------------------------
NINE
MONTHS ENDED PERIOD
9/30/97 YEAR ENDED 5/1/95* TO
(UNAUDITED) 12/31/96 12/31/95
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . $ (8,270) $ 7,124 $ (2)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . 113,177 1,101 1
Net unrealized gain (loss) on investments . . . . . . . . . . . . . . . . 58,135 30,684 47
-------------- -------------- --------------
Net increase (decrease) in net assets from operations . . . . . . . . . 163,042 38,909 46
-------------- -------------- --------------
FROM CAPITAL TRANSACTIONS:
Net premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581,666 520,547 1,590
Terminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,075) - -
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . (77,417) - -
Other transfers from (to) the General Account of Allmerica
Financial Life Insurance and Annuity Company (Sponsor) . . . . . . . 783,117 152,993 (178)
Net increase (decrease) in investment by Allmerica Financial
Life Insurance and Annuity Company (Sponsor) . . . . . . . . . . . . . - - -
-------------- -------------- --------------
Net increase (decrease) in net assets from capital transactions . . . . . 1,285,291 673,540 1,412
-------------- -------------- --------------
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . 1,448,333 712,449 1,458
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713,907 1,458 -
-------------- -------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,162,240 $ 713,907 $ 1,458
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
*Date of initial investment
The accompanying notes are an integral part of these financial statements.
Page 4
<PAGE>
FINANCIAL STATEMENTS
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30,
(In millions) 1997 1996
- -------------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Premiums. . . . . . . . . . . . . . . . . . . . . . $ 23.3 $ 25.2
Universal life and investment product policy fees . 156.4 129.5
Net investment income . . . . . . . . . . . . . . . 125.8 129.3
Net realized investment losses. . . . . . . . . . . (2.9) (5.7)
Other income. . . . . . . . . . . . . . . . . . . . 0.6 0.3
-------- --------
Total revenues. . . . . . . . . . . . . . . . . . 303.2 278.6
-------- --------
BENEFITS, LOSSES AND EXPENSES
Policy benefits, claims, losses and loss adjustment
expenses . . . . . . . . . . . . . . . . . . . . . 147.2 143.5
Policy acquisition expenses . . . . . . . . . . . . 38.0 36.7
Loss from cession of disability income business . . 53.9 -
Other operating expenses. . . . . . . . . . . . . . 71.6 63.6
-------- --------
Total benefits, losses and expenses. . . . . . . 310.7 243.8
-------- --------
(Loss) income before federal income taxes. . . . . . . (7.5) 34.8
-------- --------
FEDERAL INCOME TAX EXPENSE (BENEFIT)
Current.. . . . . . . . . . . . . . . . . . . . . . 5.9 18.3
Deferred. . . . . . . . . . . . . . . . . . . . . . (8.1) (8.6)
-------- --------
Total federal income tax (benefit) expense . . . . . . (2.2) 9.7
-------- --------
Net (loss) income. . . . . . . . . . . . . . . . . . . $ (5.3) $ 25.1
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30,
(In millions) 1997 1996
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
Balance at beginning and end of period . . . . . . . $ 2.5 $ 2.5
-------- --------
ADDITIONAL PAID-IN CAPITAL
Balance at beginning and end of period . . . . . . . 346.3 324.3
-------- --------
RETAINED EARNINGS
Balance at beginning of period . . . . . . . . . . . 176.4 144.7
Net (loss) income. . . . . . . . . . . . . . . . . . ( 5.3) 25.1
-------- --------
Balance at end of period . . . . . . . . . . . . . . 171.1 169.8
-------- --------
NET UNREALIZED APPRECIATION ON INVESTMENTS
Balance at beginning of period . . . . . . . . . . . 20.5 23.8
Net appreciation (depreciation) on available-for-sale
securities. . . . . . . . . . . . . . . . . . 21.7 ( 20.4)
(Provision) benefit for deferred federal income taxes (7.6) 7.2
-------- --------
Balance at end of period . . . . . . . . . . . . . . 34.6 10.6
-------- --------
Total shareholders' equity. . . . . . . . . . . $ 554.5 $ 507.2
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
BALANCE SHEETS
<TABLE>
<CAPTION>
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
(In millions) 1997 1996
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments:
Fixed maturities-at fair value (amortized cost of $1,425.0 and $1,660.2) $ 1,486.6 $ 1,698.0
Equity securities-at fair value (cost of $33.4 and $33.0) . . . . . . . 51.9 41.5
Mortgage loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.7 221.6
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.8 26.1
Policy loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138.1 131.7
Other long-term investments . . . . . . . . . . . . . . . . . . . . . . 0.1 7.9
---------- ----------
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . 1,905.22 2,126.8
---------- ----------
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . 18.3 18.8
Accrued investment income . . . . . . . . . . . . . . . . . . . . . . . 34.8 37.7
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . 676.0 632.7
Reinsurance receivable on paid and unpaid losses,
benefits and unearned premiums. . . . . . . . . . . . . . . . . . 75.0 72.5
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210.1 8.2
Separate account assets . . . . . . . . . . . . . . . . . . . . . . . . 7,040.6 4,524.0
---------- ----------
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,960.0 $ 7,420.7
---------- ----------
---------- ----------
LIABILITIES
Policy liabilities and accruals:
Future policy benefits. . . . . . . . . . . . . . . . . . . . . . . . . $ 2,136.8 $ 2,163.0
Outstanding claims, losses and loss adjustment expenses . . . . . . . . 16.5 15.4
Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 2.7
Contractholder deposit funds and other policy liabilities . . . . . . . 36.4 32.8
---------- ----------
Total policy liabilities and accruals. . . . . . . . . . . . . . . 2,192.3 2,213.9
---------- ----------
Expenses and taxes payable. . . . . . . . . . . . . . . . . . . . . . . 117.9 77.3
Deferred federal income taxes . . . . . . . . . . . . . . . . . . . . . 54.7 60.2
Separate account liabilities. . . . . . . . . . . . . . . . . . . . . . 7,040.6 4,523.6
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 9,405.5 6,873.0
---------- ----------
Commitments and contingencies
SHAREHOLDERS' EQUITY
Common stock, $1,000 par value, 10,000 shares authorized, 2,518 shares
issued and outstanding. . . . . . . . . . . . . . . . . . . . . . . . . 2.5 2.5
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . 346.3 346.3
Unrealized appreciation on investments, net. . . . . . . . . . . . . . . 34.6 20.5
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 171.1 176.4
---------- ----------
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . 554.5 545.7
---------- ----------
Total liabilities and shareholders' equity. . . . . . . . . . . . . $ 9,960.0 $ 7,420.7
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
(In millions) 1997 1996
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income. . . . . . . . . . . . . . . . . . . . . . . $ (5.3) $ 25.1
Adjustments to reconcile net (loss) income to net cash from
operating activities:
Net realized losses. . . . . . . . . . . . . . . . . . . . . . . . 2.9 5.7
Net amortization and depreciation. . . . . . . . . . . . . . . . . 0.2 2.9
Deferred federal income taxes. . . . . . . . . . . . . . . . (8.1) (8.6)
Change in deferred acquisition costs . . . . . . . . . . . . . . . (58.7) (36.8)
Change in accrued investment income. . . . . . . . . . . . . . . . 2.9 (2.0)
Change in policy liabilities and accruals, net . . . . . . . . . . (20.8) (38.4)
Change in reinsurance receivable . . . . . . . . . . . . . . . . . (2.6) (3.7)
Change in expenses and taxes payable . . . . . . . . . . . . . . . 29.6 46.5
Separate account activity, net . . . . . . . . . . . . . . . . . . 0.4 10.8
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 (4.0)
-------- -------
Net cash used in operating activities . . . . . . . . . . . . . (59.1) (2.5)
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposals and maturities of available-for-sale fixed
maturities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 602.2 643.1
Proceeds from disposals of equity securities . . . . . . . . . . . . 2.1 1.2
Proceeds from disposals of other investments . . . . . . . . . . . . 19.4 10.7
Proceeds from mortgages matured or collected . . . . . . . . . . . . 40.5 16.4
Purchase of available-for-sale fixed maturities. . . . . . . . . . . (562.6) (698.7)
Purchase of equity securities. . . . . . . . . . . . . . . . . . . . (1.9) (12.8)
Purchase of other investments. . . . . . . . . . . . . . . . . . . . (41.1) (21.9)
-------- -------
Net cash provided by (used in) investing activities . . . . . . 58.6 (62.0)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Change in short term debt. . . . . . . . . . . . . . . . . . . . . . -- 63.2
-------- -------
Net cash provided by financing activities. . . . . . . . . . . . . -- 63.2
-------- -------
Net change in cash and cash equivalents . . . . . . . . . . . . . . . (0.5) (1.3)
Cash and cash equivalents, beginning of period. . . . . . . . . . . . 18.8 17.3
-------- -------
Cash and cash equivalents, end of period. . . . . . . . . . . . . . . $ 18.3 $ 16.0
-------- -------
-------- -------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
NOTES TO INTERIM FINANCIAL STATEMENTS
1. Organization and Basis of Presentation
Allmerica Financial Life Insurance and Annuity Company ("Allmerica Financial"
or the "Company") is a wholly owned subsidiary of SMA Financial Corp., which
is wholly owned by First Allmerica Financial Life Insurance Company ("First
Allmerica"), a stock life insurance company. First Allmerica is a wholly
owned subsidiary of Allmerica Financial Corporation ("AFC"). The
stockholder's equity of the Company is being maintained at a minimum level of
5% of general account assets by First Allmerica in accordance with a policy
established by vote of First Allmerica's Board of Directors.
The accompanying unaudited financial statements of Allmerica Financial have
been prepared in accordance with generally accepted accounting principles for
stock life insurance companies for interim financial information. The
Company began preparing financial statements in accordance with generally
accepted accounting principles for the nine months ended September 31, 1996.
Adjustments to conform with generally accepted accounting principles are not
available on a quarterly basis prior to September 30, 1996. Accordingly,
quarterly comparative amounts for the quarters ended September 30, 1996 and
1997 are not presented.
The accompanying interim financial statements reflect, in the opinion of the
Company's management, all adjustments, consisting of only normal and
recurring adjustments, necessary for a fair presentation of the financial
position and results of operations. The results of operations for the nine
months ended September 30, 1997 are not necessarily indicative of the results
to be expected for the full year. These financial statements should be read
in conjunction with the Company's 1996 annual audited financial statements.
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
130, "Reporting Comprehensive Income" (FAS No. 130). FAS No. 130 established
standards for the reporting and display of comprehensive income and its
components in a full set of general-purpose financial statements. All items
that are required to be recognized under accounting standards as components
of comprehensive income are to be reported in a financial statement that is
displayed with the same prominence as other financial statements. This
statement stipulates that comprehensive income reflect the change in equity
of an enterprise during a period from transactions and other events and
circumstances from non-owner sources. Comprehensive income will thus
represent the sum of net income and other comprehensive income, although FAS
No. 130 does not require the use of the terms comprehensive income or other
comprehensive income. The accumulated balance of other comprehensive income
shall be displayed separately from retained earnings and additional paid-in
capital in the statement of financial position. This statement is effective
for fiscal years beginning after December 15, 1997. The Company anticipates
that the adoption of FAS No. 130 will result primarily in reporting
unrealized gains and losses on investments in debt and equity securities in
comprehensive income.
2. Significant Transactions
On April 14, 1997, the Company entered into an agreement in principle to
transfer the Company's individual disability income business under a 100%
coinsurance agreement to Metropolitan Life Insurance Company. The
coinsurance agreement became effective October 1, 1997. The transaction has
resulted in the recognition of a $53.9 million pre-tax loss in the first
quarter of 1997.
3. Federal Income Taxes
Federal income tax expense for the nine months ended September 30, 1997 and
1996, have been computed using estimated effective tax rates. These rates
are revised, if necessary, at the end of each successive interim period to
reflect the current estimates of the annual effective tax rates.
4. Commitments and Contingencies
In late July 1997, a lawsuit was instituted in Louisiana against AFC and
certain of its subsidiaries, by individual plaintiffs alleging fraud, unfair
or deceptive acts, breach of contract, misrepresentation and related claims
in the sale of life insurance policies. In October 1997, plaintiffs
voluntarily dismissed the Louisiana suit and refiled the action in Federal
District Court in Worcester, Massachusetts. The plaintiffs seek to be
certified as a class. The case is in the early stages of discovery and the
Company is evaluating the claims. Although the Company believes it has
meritorious defenses to plaintiffs' claims, there can be no assurance that
the claims will be resolved on a basis which is satisfactory to the Company.
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned Registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
RULE 484 UNDERTAKING
Article VIII of Registrant's Bylaws provides: Each Director and each Officer of
the Corporation, whether or not in office, (and his executors or
administrators), shall be indemnified or reimbursed by the Corporation against
all expenses actually and necessarily incurred by him in the defense or
reasonable settlement of any action, suit, or proceeding in which he is made a
party by reason of his being or having been a Director or Officer of the
Corporation, including any sums paid in settlement or to discharge judgment,
except in relation to matters as to which he shall be finally adjudged in such
action, suit, or proceeding to be liable for negligence or misconduct in the
performance of his duties as such Director or Officer; and the foregoing right
of indemnification or reimbursement shall not affect any other rights to which
he may be entitled under the Articles of Incorporation, any statute, bylaw,
agreement, vote of stockholders, or otherwise.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATIONS PURSUANT TO SECTION 26(e) OF THE INVESTMENT COMPANY ACT OF 1940
The Company hereby represents that the aggregate fees and charges under the
Policy are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the Company.
REPRESENTATIONS CONCERNING WITHDRAWAL RESTRICTIONS ON SECTION 403(B) PLANS UNDER
THE TEXAS OPTIONAL RETIREMENT PROGRAM.
The Company and its registered separate accounts which fund annuity contracts
issued in connection with Section 403(b) plans have relied (a) on Rule 6c-7
under the 1940 Act with respect to withdrawal restrictions under the Texas
Optional Retirement Program ("Program") and (b) on the "no-action" letter (Ref.
No. IP-6-88) issued on November 28, 1988 to the American Council of Life
Insurance, in applying the withdrawal restrictions of Internal Revenue Code
Section 403(b)(11). The variable life insurance Policies issued by the
Registrant may be issued in connection with Section 403(b) plans ("Plans"), and
would be subject to the same restrictions on redeemability which are applicable
to annuity contracts issued to such Plans. The Company and the Registrant
represent that they will take the following steps in connection with the
issuance of the policies to Section 403(b) plans:
1. Appropriate disclosures regarding the redemption restrictions imposed by
the Program and by Section 403(b)(11) have been included in the prospectus
of each registration statement issued in connection with the offer of the
Company's variable contracts.
2. Appropriate disclosure regarding the redemption restrictions imposed by the
Program and by section 403(b)(11) have been included in sales literature
used in connection with the offer of the Company's variable contracts.
<PAGE>
3. Sales Representatives who solicit participants to purchase the variable
contracts have been instructed to specifically bring the redemption
restrictions imposed by the Program and by Section 403(b) (11) to the
attention of potential participants.
4. A signed statement acknowledging the participant's understanding of (i) the
restrictions on redemption imposed by the Program and by Section 403(b)(11)
and (ii) the investment alternatives available under the employer's
arrangement will be obtained from each participant who purchases a variable
contract prior to or at the time of purchase.
Registrant hereby represents that it will not act to deny or limit a transfer
request except to the extent that a Service-Ruling or written opinion of
counsel, specifically addressing the fact pattern involved and taking into
account the terms of the applicable employer plan, determines that denial or
limitation is necessary for the variable contracts to meet the requirements of
the Program or of Section 403(b). Any transfer request not so denied or limited
will be effected as expeditiously as possible.
<PAGE>
CONTENTS OF THE REGISTRATION STATEMENT
This registration statement comprises the following papers and documents:
The facing sheet.
Cross-reference to items required by Form N-8B-2.
The prospectus consists of ____ pages.
The undertaking to file reports.
The undertaking pursuant to Rule 484 under the Securities Act of 1933.
Representations Pursuant to Section 26(e) of the Investment Company Act of 1940
The signatures.
Written consents of the following persons:
1. Price Waterhouse
2. Opinion of Counsel
3. Actuarial Opinion
The following exhibits:
EXHIBITS
1. Exhibit 1 (Exhibits required by paragraph A of the instructions to
Form N-8B-2)
(1) Certified copy of Resolutions of the Board of Directors of the
Company of October 12, 1993 establishing the Allmerica Select
Separate Account II was previously filed with Registrant's
initial Registration Statement and are herein incorporated by
reference.
(2) Not Applicable.
(3) (a) Form of Sales and Administrative Services Agreement between
the Company and Allmerica Investments, Inc. was previously
filed on February 1, 1993 and is herein incorporated by
reference.
(b) Registered Representative Agreement and Resident Sponsor
Agreement of Allmerica Investment Inc. (formerly "SMA
Equities, Inc.") were previously filed by the Company on
June 3, 1987, Registration No. 33-14672, and are
incorporated herein by reference.
(4) Not Applicable.
(5) Forms of Policy and Policy riders were previously filed with
Registrant's initial Registration Statement and are herein
incorporated by reference. 403(b) Life Insurance Policy
Endorsement and Riders were previously filed in Post-Effective
Amendment No. 3 on May 1, 1997 and are incorporated by reference
herein.
(6) Organizational documents of the Company were previously filed by
the Company in Post-Effective Amendment No. 1, Registration
No. 33-83604 and are incorporated by reference herein.
(7) Not Applicable.
(8) (a) Form of Participation Agreement with Allmerica Investment
Trust was previously filed by the Company on June 3, 1987 in
Registration Statement No. 33-14672, and is incorporated
herein by reference.
(b) Form of Participation Agreement with T. Rowe Price
International Series, Inc. was previously filed with
Registrant's Pre-effective amendment No. 1 and is herein
incorporated by reference.
<PAGE>
(c) Form of Participation Agreement with Variable Insurance
Products Fund was previously filed on May 1, 1995 and is
incorporated by reference.
(d) Fidelity Service Agreement as of November 1, 1995 was
previously filed on April 30, 1996 in Post-Effective
Amendment No. 2 and is incorporated by reference herein. An
Amendment to the Fidelity Service Agreement, effective as of
January 1, 1997 was previously filed on May 1, 1997 in
Post-Effective Amendment No. 3 and is incorporated by
reference herein. A proposed form of Fidelity Service
Contract was previously filed in Post-Effective Amendment
No. 3 on May 1, 1997 and is incorporated by reference
herein.
(9) Not Applicable.
(10) Form of Application was previously filed with Registrant's
initial registration statement and is herein incorporated by
reference.
2. Form of Policy and Policy riders are included in Exhibit 1 above.
3. Opinion of Counsel is filed herewith.
4. Not Applicable.
5. Not Applicable.
6. Actuarial consent is filed herewith
7. Procedures Memorandum pursuant to Rule 6e-3(T)(b)(12)(iii) under
the 1940 Act which includes conversion procedures pursuant to
Rule 6e-3(T)(b)(13)(v)(B) was previously filed with Registrant's
initial Registration Statement and is herein incorporated by
reference.
8. Consent of Independent Accountants is filed herewith.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 the Registrant certifies that it meets all the requirements
for effectiveness of this Registration Statement pursuant to Rule 485(b) under
the Securities Act of 1933 and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereto duly authorized, in the City of
Worcester, and Commonwealth of Massachusetts, on the 2nd day of February, 1998.
ALLMERICA SELECT SEPARATE ACCOUNT II
OF ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Abigail M. Armstrong
-------------------------------
Abigail M. Armstrong, Secretary
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated.
Signatures Title Date
- ---------- ----- ----
/s/ John F. O'Brien Director and Chairman of February 2, 1998
- ----------------------------- the Board
John F. O'Brien
/s/ Bruce C. Anderson Director
- -----------------------------
Bruce C. Anderson
/s/ Robert E. Bruce Director
- -----------------------------
Robert E. Bruce
/s/ John P. Kavanaugh Director, Vice President and
- ----------------------------- Chief Investment Officer
John P. Kavanaugh
/s/ John F. Kelly Director, Vice President and
- ----------------------------- General Counsel
John F. Kelly
/s/ J. Barry May Director
- -----------------------------
J. Barry May
/s/ James R. McAuliffe Director
- -----------------------------
James R. McAuliffe
/s/ Edward J. Parry III Director, Vice President and
- ----------------------------- Chief Financial Officer
Edward J. Parry III
/s/ Richard M. Reilly Director, President and
- ----------------------------- Chief Executive Officer
Richard M. Reilly
/s/ Eric A. Simonsen Director and Vice President
- -----------------------------
Eric A. Simonsen
/s/ Phillip E. Soule Director
- -----------------------------
Phillip E. Soule
<PAGE>
FORM S-6 EXHIBIT TABLE
Exhibit 3 Opinion of Counsel
Exhibit 6 Actuarial Consent
Exhibit 8 Consent of Independent Accountants
<PAGE>
February 2, 1998
Allmerica Financial Life Insurance and Annuity Company
440 Lincoln Street
Worcester MA 01653
RE: ALLMERICA SELECT SEPARATE ACCOUNT II OF ALLMERICA FINANCIAL LIFE INSURANCE
AND ANNUITY COMPANY FILE NOS. 33-83604 AND 811-8746
Gentlemen:
In my capacity as Counsel of Allmerica Financial Life Insurance and Annuity
Company (the "Company"), I have participated in the preparation of this
Post-Effective Amendment to the Registration Statement for the Allmerica
Select Separate Account II on Form S-6 under the Securities Act of 1933 with
respect to the Company's individual flexible premium variable life insurance
policies.
I am of the following opinion:
1. The Allmerica Select Separate Account II is a separate account of the
Company validly existing pursuant to the Delaware Insurance Code and the
regulations issued thereunder.
2. The assets held in the Allmerica Select Separate Account II equal to the
reserves and other Policy liabilities of the Policies which are supported
by the Allmerica Select Separate Account II are not chargeable with
liabilities arising out of any other business the Company may conduct.
3. The individual flexible premium variable life insurance policies, when
issued in accordance with the Prospectus contained in the Registration
Statement and upon compliance with applicable local law, will be legal and
binding obligations of the Company in accordance with their terms and when
sold will be legally issued, fully paid and non-assessable.
In arriving at the foregoing opinion, I have made such examination of law and
examined such records and other documents as in my judgment are necessary or
appropriate.
I hereby consent to the filing of this opinion as an exhibit to this
Post-Effective Amendment to the Registration Statement of the Allmerica
Select Separate Account II on Form S-6 filed under the Securities Act of
1933.
Very truly yours,
/s/ Sheila B. St. Hilaire
Sheila B. St. Hilaire
Assistant Vice President and Counsel
<PAGE>
February 2, 1998
Allmerica Financial Life Insurance and Annuity Company
440 Lincoln Street
Worcester MA 01653
RE: ALLMERICA SELECT SEPARATE ACCOUNT II OF ALLMERICA FINANCIAL LIFE INSURANCE
AND ANNUITY COMPANY FILE NOS. 33-83604 AND 811-8746
Gentlemen:
This opinion is furnished in connection with the filing by Allmerica Financial
Life Insurance and Annuity Company of a Post-Effective Amendment to the
Registration Statement on Form S-6 of its flexible premium variable life
insurance policies ("Policies") allocated to the Allmerica Select Separate
Account II under the Securities Act of 1933. The prospectus included in the
Post-Effective Amendment to the Registration Statement describes the Policies.
I am familiar with and have provided actuarial advice concerning the preparation
of the Post-Effective Amendment to the Registration Statement, including
exhibits.
In my professional opinion, the illustration of death benefits and cash values
included in Appendix C of the prospectus, based on the assumptions stated in the
illustrations, are consistent with the provisions of the Policy. The rate
structure of the Policies has not been designed so as to make the relationship
between premiums and benefits, as shown in the illustrations, appear more
favorable to a prospective purchaser of a Policy for a person age 30 or a person
age 45 than to prospective purchasers of Policies for people at other ages or
underwriting classes. I am also of the opinion that the aggregate fees and
charges under the Policy are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by the Company.
I hereby consent to the use of this opinion as an exhibit to the Post-Effective
Amendment to the Registration Statement.
Sincerely,
/s/ William H. Mawdsley
William H. Mawdsley, FSA, MAAA
Vice President and Actuary
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Prospectus constituting part of this
Post-Effective Amendment No. 4 to the Registration Statement on Form S-6 of
our report dated February 3, 1997, relating to the financial statements of
Allmerica Financial Life Insurance and Annuity Company, our report dated
February 5, 1996 relating to the statutory basis financial statements of
Allmerica Financial Life Insurance and Annuity Company, and our report dated
March 26, 1997 relating to the financial statements of the Allmerica Select
Separate Account II of Allmerica Financial Life Insurance and Annuity
Company, all of which appear in such Prospectus. We also consent to the
reference to us under the heading "Independent Accountants" in such
Prospectus.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Boston, Massachusetts
February 9, 1998
