As filed with the Securities and Exchange Commission on April 24, 1997
Registration No. 33-98062
811-8814
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 o
Pre-Effective Amendment No. ___ o
Post-Effective Amendment No. 1 x
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 o
Amendment No. 5 x
COMPANION LIFE SEPARATE ACCOUNT C
(Exact Name of Registrant)
COMPANION LIFE INSURANCE COMPANY
(Name of Depositor)
401 Theodore Fremd Avenue, Rye, New York 10580-1493
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code
(402) 351-5087
Name and Address of
Agent for Service:
Kenneth W. Reitz, Esquire
Mutual of Omaha Companies
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska 68175-1008
It is proposed that this filing will become effective (check appropriate
box):
o immediately upon filing pursuant to paragraph (b)
x on May 1, 1997 pursuant to paragraph (b)
o 60 days after filing pursuant to paragraph (a)(i)
o on __________ pursuant to paragraph (a)(i)
o 75 days after filing pursuant to paragraph (a)(ii)
o on ________pursuant to paragraph (a)(ii) or Rule 485
If appropriate, check the following box:
o This Post-Effective Amendment designates a new effective date
for a previously filed Post-Effective Amendment.
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, the
Registrant previously registered an indefinite amount of Ultrannuity Series V
Variable Annuity Policies under the Securities Act of 1933. The Registrant filed
a Rule 24f-2 notice on February 26, 1997 for its most recent fiscal year ended
December 31, 1996.
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<TABLE>
<CAPTION>
CROSS REFERENCE SHEET
Pursuant to Rule 495
Showing Location in Part A (Prospectus) and
Part B (Statement of Additional Information)
of Registration Statement of Information Required by Form N-4
PART A
<S> <C>
Item of Form N-4 Prospectus Caption
1. Cover Page................................ Cover Page
2. Definitions............................... Definitions
3. Synopsis.................................. Summary; Historical Performance Data
4. Condensed Financial Information........... Financial Statements
5. General
(a) Depositor................................. Companion Life Insurance Company
(b) Registrant................................ The Variable Account
(c) Portfolio Company......................... The Series Funds
(d) Fund Prospectus........................... The Series Funds
(e) Voting Rights............................. Voting Rights
6. Deductions and Expenses
(a) General................................... Charges and Deductions
(b) Sales Load %.............................. Withdrawal Charge
(c) Special Purchase Plan..................... N/A
(d) Commissions............................... Distributor of the Policies
(e) Expenses - Registrant..................... N/A
(f) Fund Expenses............................. Expenses Including Investment
Advisory Fees
(g) Organizational Expenses................... N/A
7. Policies
(a) Persons with Rights....................... The Policy; Election of Annuity Option;
Determination of Annuity Payments; Annuity
Starting Date; Ownership of the Policy;
Voting Rights
(b) (i) Allocation of Premium
Payments............................ Allocation of Purchase Payments
(ii) Transfers........................... Transfers
(iii) Exchanges........................... N/A
(c) Changes................................... Addition, Deletion or Substitution of
Investments; Election of Annuity Option;
Annuity Starting Date; Beneficiary; Ownership
of the Policy
(d) Inquiries................................. Summary
8. Annuity Period............................ Payout Options
9. Death Benefit............................. Death of Annuitant or Owner Prior to Annuity
Starting Date
10. Purchase and Policy Values
(a) Purchases................................. Policy Application and Issuance of Policies;
Purchase Payments
(b) Valuation................................. Accumulation Value; The Variable Account Value
(c) Daily Calculation......................... The Variable Account Value
(d) Underwriter............................... Distributor of the Policies
11. Redemptions
(a) By Owners................................. Withdrawals
By Annuitant.............................. N/A
(b) Check Delay............................... Payment not Honored by Bank
(c) Lapse..................................... N/A
(d) Free Look................................. Summary
12. Taxes..................................... Certain Federal Income Tax Consequences
13. Legal Proceedings......................... Legal Proceedings
14. Table of Contents for the
Statement of Statement of Additional
Additional Information........................ Information
PART B
Item of Form N-4 Statement of Additional
Information Caption
15. Cover Page................................ Cover Page
16. Table of Contents......................... Table of Contents
17. General Information
and History................................... (Prospectus) Companion Life Insurance Company
18. Services
(a) Fees and Expenses
of Registrant............................. N/A
(b) Management Policies....................... N/A
(c) Custodian................................. Custody of Assets
Independent
Auditors ................................ Independent Auditors
(d) Assets of Registrant...................... Custody of Assets
(e) Affiliated Person......................... N/A
(f) Principal Underwriter..................... Distribution of the Policies
19. Purchase of Securities
Being Offered................................. Distribution of the Policies
Offering Sales Load........................... N/A
20. Underwriters.............................. Distribution of the Policies; (Prospectus)
Distributor of the Policies
21. Calculation of Performance
Data.......................................... Calculation of Yields and Total Returns;
Other Performance Data
22. Annuity Payments.......................... (Prospectus) Election of Payout Option;
(Prospectus) Determination of Annuity Payments
23. Financial Statements...................... Financial Statements
PART C -- OTHER INFORMATION
Item of Form N-4 Part C Caption
24. Financial Statements
and Exhibits.................................. Financial Statements and Exhibits
(a) Financial Statements...................... Financial Statements
(b) Exhibits.................................. Exhibits
25. Directors and Officers of................. Directors and Officers of the
the Depositor................................. Depositor
26. Persons Controlled By or Under Common Control Persons Controlled By or Under Common
with the Depositor or Registrant ............. Control with the Depositor or Registrant
27. Number of Policyowners.................... Number of Policyowners
28. Indemnification........................... Indemnification
29. Principal Underwriters.................... Principal Underwriters
30. Location of Accounts
and Records................................... Location of Accounts and Records
31. Management Services....................... Management Services
32. Undertakings.............................. Undertakings
Signature Page................................ Signatures
</TABLE>
<PAGE>
Prospectus May 1, 1997
THE ULTRANNUITY SERIES V VARIABLE ANNUITY
Issued Through
COMPANION LIFE SEPARATE ACCOUNT C
by
COMPANION LIFE INSURANCE COMPANY
This Prospectus describes the Ultrannuity Series V Variable Annuity Policy (the
"Policy"), a Flexible Payment Variable Deferred Annuity offered by Companion
Life Insurance Company. The Policy is designed to aid in long-term financial
planning and provides for the accumulation of capital by individuals on a
tax-deferred basis for retirement or other long-term purposes.
The Owner may allocate Purchase Payments to one or more of the 24 Eligible
investments, which are the 23 Subaccounts of the Companion Life Separate Account
C (the "Variable Account") and the Fixed Account. Assets of each Subaccount of
the Variable Account are invested in a corresponding mutual fund Portfolio. The
Portfolios are described in separate prospectuses that accompany this
Prospectus. The Policy's available investment options are:
Alger American Growth Portfolio
Alger American Small Capitalization Portfolio
Federated Prime Money Fund II("Money Market") Portfolio
Federated Fund for U.S. Government Securities Portfolio
Fidelity Asset Manager: Growth Portfolio
Fidelity Equity Income Portfolio
Fidelity Contrafund Portfolio
Fidelity Index 500 Portfolio
MFS Emerging Growth Portfolio
MFS High Income Fund Portfolio
MFS Research Portfolio
MFS World Government Portfolio
MFS Value Series Portfolio
Pioneer Capital Growth Portfolio
Pioneer Real Estate Portfolio
Scudder Global Discovery Portfolio
Scudder Growth & Income Portfolio
Scudder International Portfolio
T. Rowe Price Equity Income Portfolio
T. Rowe Price International Portfolio
T. Rowe Price Limited Term Bond Portfolio
T. Rowe Price New America Growth Portfolio
T. Rowe Price Personal Strategy Balanced Portfolio
Fixed Account
The Accumulation Value in the Variable Account will vary in accordance with
the investment performance of the Subaccounts selected by the Owner. Therefore,
the Owner bears the entire investment risk under this Policy for all amounts
allocated to the Variable Account. Amounts allocated to the Fixed Account are
guaranteed by Companion Life Insurance Company ("Companion") and will earn a
specified rate of interest declared periodically.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
AN INTEREST IN THE POLICY IS NOT A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR
ENDORSED BY ANY BANK, NOR IS THE POLICY FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
This Prospectus sets forth the information that a prospective investor should
consider before investing in a Policy. A Statement of Additional Information
about the Policy and the Variable Account, which has the same date as this
Prospectus, has been filed with the Securities and Exchange Commission and is
incorporated herein by reference. The Statement of Additional Information is
available at no cost to any person requesting a copy by writing Companion at its
Service Office (Companion Life Variable Product Service, P.O. Box 3664, Omaha,
Nebraska 68103-0664) or by calling 1-800-494-0067. The table of contents of the
Statement of Additional Information is included at the end of this Prospectus.
The Policy may be purchased with an initial Purchase Payment of at least
$5,000, and an Owner generally may pay additional Purchase Payments of at least
$500 each (but no additional Purchase Payments are required).
The Policy provides for periodic annuity payments to be made by Companion to
the Owner, if living, for the life of the Annuitant or for some other period,
beginning on the Annuity Starting Date selected by the Owner. Prior to the
Annuity Starting Date, the Owner can transfer Accumulation Value among the
Eligible Investments, that is, among the Fixed Account and the 24 Subaccounts of
the Variable Account (some prohibitions and restrictions apply, especially on
transfers out of the Fixed Account). The Owner can also elect to withdraw all or
a portion of the Cash Surrender Value; however, withdrawals may be taxable,
subject to a Withdrawal Charge and/or a tax penalty, and withdrawals from the
Fixed Account may be delayed.
THIS PROSPECTUS AND THE STATEMENT OF ADDITIONAL INFORMATION GENERALLY DESCRIBE
ONLY THE POLICIES AND THE VARIABLE ACCOUNT, EXCEPT WHEN THE FIXED ACCOUNT IS
SPECIFICALLY MENTIONED.
PLEASE READ THIS PROSPECTUS CAREFULLY
AND RETAIN IT FOR FUTURE REFERENCE.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE. NO DEALER, SALESPERSON OR OTHER PERSON
IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION
WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN
OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.
THIS PROSPECTUS MUST BE ACCOMPANIED OR PRECEDED
BY A CURRENT PROSPECTUS FOR EACH PORTFOLIO
<PAGE>
TABLE OF CONTENTS
Page
DEFINITIONS ........................................................... 4
SUMMARY .............................................................. 6
FINANCIAL STATEMENTS................................................... 10
COMPANION LIFE INSURANCE COMPANY....................................... 10
THE ELIGIBLE INVESTMENTS............................................... 10
The Variable Account.......................................... 10
Historical Performance Data................................... 15
Standardized Performance Data............................. 15
Non-Standardized Performance Data......................... 16
The Fixed Account............................................. 18
Transfers..................................................... 18
Dollar Cost Averaging......................................... 19
Asset Allocation Program...................................... 19
THE POLICY............................................................. 20
Policy Application and Issuance of Policies................... 20
Purchase Payments............................................. 20
Accumulation Value............................................ 21
DISTRIBUTIONS UNDER THE POLICY......................................... 21
Withdrawals................................................... 21
Systematic Withdrawal Plan.................................... 22
Annuity Payments.............................................. 22
Annuity Starting Date..................................... 22
Election of Payout Option................................. 22
Payout Options............................................ 23
Death Benefit................................................. 24
Death of Owner Prior to Annuity Starting Date............. 24
Death of Owner On or After Annuity Starting Date.......... 25
Beneficiary............................................... 25
IRS Required Distributions.................................... 25
CHARGES AND DEDUCTIONS................................................. 25
Withdrawal Charge............................................. 25
Mortality and Expense Risk Charge ............................ 26
Administrative Charges........................................ 26
Transfer Fee.................................................. 26
Federal, State and Local Taxes......................................... 27
Other Expenses Including Investment Advisory Fees...................... 27
CERTAIN FEDERAL INCOME TAX CONSEQUENCES................................ 27
Tax Status of the Policy...................................... 27
Taxation of Annuities......................................... 27
DISTRIBUTOR OF THE POLICIES............................................ 30
VOTING RIGHTS.......................................................... 30
LEGAL PROCEEDINGS...................................................... 30
STATEMENT OF ADDITIONAL INFORMATION.................................... 31
<PAGE>
DEFINITIONS
Accumulation Unit -- An accounting unit of measure used in calculating the
Accumulation Value in the Variable Account prior to the Annuity Starting Date.
Accumulation Value -- The dollar value as of any Valuation Date prior to the
Annuity Starting Date of all amounts in the Variable Account, plus the value in
the Fixed Account.
Anniversary Value -- An amount equal to the Accumulation Value on a Policy
Anniversary.
Annuitant -- The person on whose life Annuity Payments involving life
contingencies are based. If the Annuitant is other than the Owner, the Annuitant
has no rights under the Policy.
Annuity Payment -- A payment made by Companion under an annuity Payout Option.
Annuity Starting Date -- The date upon which Annuity Payments are to begin. The
latest Annuity Starting Date permitted is when the Annuitant attains age 90.
Beneficiary -- The person(s) or other legal entity listed by the Owner in the
Policy application and referred to in the Policy as the named beneficiary. In
the case of joint Owners, the surviving joint Owner is the primary Beneficiary
and the named Beneficiary is the contingent Beneficiary. If the named
Beneficiary does not survive the Owner, the estate of the Owner is the
Beneficiary.
Cash Surrender Value -- The Accumulation Value less any applicable Withdrawal
Charge and any applicable Policy Fee.
Companion -- Companion Life Insurance Company, the issuer of the Policies.
Current Interest Rate Guarantee -- Companion's guarantee to pay a declared
current interest rate on amounts under a Policy allocated to the Fixed Account.
A particular Current Interest Rate Guarantee will be in effect for at least one
year.
Date of Issue -- The date the Policy is issued, as shown on the Policy Data
Page.
Due Proof of Death -- A certified copy of a death certificate, a certified copy
of a decree of a court of competent jurisdiction as to the finding of death, a
written statement by the attending physician, or any other proof satisfactory to
Companion will constitute Due Proof of Death.
Eligible Investments -- The Fixed Account and any of the Subaccounts of the
Variable Account.
Fixed Account -- The account which consists of general account assets of
Companion Life Insurance Company.
Nonqualified Policy -- A Policy other than a Qualified Policy.
Payee -- The person who receives Annuity Payments under the Policy.
Payout Option -- Any method of payment of Policy Proceeds under the Policy.
Policy -- The variable annuity policy offered by this Prospectus.
Policy Anniversary -- The same month and day as the Date of Issue in each
calendar year after the calendar year in which the Date of Issue occurs.
Policy Owner or Owner(s) -- The person(s) who may exercise all rights and
privileges under the Policy. If there are joint Owners, the signatures of both
Owners are needed to exercise rights under the Policy. The Policy Owner may
change the ownership of the Policy or pledge it as collateral by assigning it.
Policy Year -- A Policy Year begins on the Date of Issue and each Policy
Anniversary.
Portfolio -- A Series Fund's separate investment series that is available under
the Policy.
Purchase Payment -- An amount paid to Companion by the Policy Owner or on the
Policy Owner's behalf as consideration for the benefits provided by, and in
accordance with the provisions of, the Policy.
Proceeds -- The death benefit or the Accumulation Value reduced by any
Withdrawal Charge.
Qualified Policy -- A Policy that receives favorable tax treatment under Section
401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended.
Series Funds -- Alger American Fund, Federated's Insurance Management Series,
Fidelity's Variable Insurance Products Fund, Fidelity's Variable Insurance
Products Fund II, MFS Variable Insurance Trust, Pioneer Variable Contracts Trust
Scudder Variable Life Investment Fund, T. Rowe Price International Series, Inc.,
T. Rowe Price Fixed Income Series, Inc., and T. Rowe Price Equity Series, Inc.,
each of which is a diversified, open-end management company in which the
Variable Account invests.
Service Office - Companion Life Variable Product Service, P.O. Box 3664, Omaha,
Nebraska 68103-0664. Telephone: 1-800-494-0067.
Subaccount -- A segregated account within the Variable Account which invests in
a specified Portfolio of one of the Series Funds.
Valuation Date -- Each day that the New York Stock Exchange is open for trading.
Valuation Period -- The period commencing at the close of business of the New
York Stock Exchange on each Valuation Date and ending at the close of business
for the next succeeding Valuation Date.
Variable Account -- Companion Life Separate Account C, a separate account
maintained by Companion in which a portion of Companion's assets has been
allocated for the Policy and certain other policies.
Written Notice or Request -- Written notice, signed by the Policy Owner, that
gives Companion the information it requires and is received at the Service
Office.
<PAGE>
THE ULTRANNUITY SERIES V VARIABLE ANNUITY
SUMMARY
The Policy
The Ultrannuity Series V Variable Annuity is a Flexible Payment Variable
Deferred Annuity Policy. The Policy can be purchased on a non-tax qualified
basis ("Nonqualified Policy") or in connection with certain plans qualifying for
favorable federal income tax treatment ("Qualified Policy"). The Owner allocates
the Purchase Payments among the Eligible Investments offered under the Policy by
Companion Life Insurance Company ("Companion"). These Eligible Investments are
the 23 Subaccounts of Companion Life Separate Account C (the "Variable Account")
and the Fixed Account.
The Eligible Investments
The Variable Account. The Variable Account is a segregated investment
account of Companion. It is divided into Subaccounts, each of which invests
exclusively in shares of a corresponding mutual fund Portfolio. The available
Portfolios are: the Alger American Growth Portfolio and the Alger American Small
Capitalization Portfolio of the Alger American Fund ("Alger Fund"); the
Federated Prime Money Fund II Portfolio and the Federated Fund for U.S.
Government Securities II Portfolio of the Insurance Management Series Trust
("Insurance Management Series"); the Fidelity VIP Equity-Income Portfolio of the
Variable Insurance Products Fund ("Fidelity VIP Fund"); the Fidelity VIP II
Asset Manager: Growth Portfolio and the Fidelity Contrafund Portfolio and
Fidelity Index 500 of the Variable Insurance Products Fund II ("Fidelity VIP
Fund II"); the MFS Emerging Growth Portfolio, the MFS High Income Fund
Portfolio, the MFS Research Portfolio, MFS Value Series and the MFS World
Government Portfolio of the MFS Variable Insurance Trust ("MFS Trust"); the
Pioneer Capital Growth Portfolio of the Pioneer Capital Growth Fund and the
Pioneer Real Estate Portfolio of the Pioneer Real Estate Fund, (collectively
"Pioneer Funds"), the Scudder International Portfolio of the Scudder Variable
Life Investment Fund ("Scudder Fund"); the T. Rowe Price International Stock
Portfolio of T. Rowe Price International Series, Inc. ("T. Rowe Price
International Series"); the T. Rowe Price Limited-Term Bond Portfolio of T. Rowe
Price Fixed Income Series, Inc. ("T. Rowe Price Fixed Income Series"); the T.
Rowe Price Personal Strategy Balanced Portfolio, the T. Rowe Price New America
Growth Portfolio and T. Rowe Price Equity Income Portfolio of T. Rowe Price
Equity Series, Inc. ("T. Rowe Price Equity Series") (each of the Alger Fund,
Insurance Management Series, Fidelity VIP Fund, Fidelity VIP Fund II, MFS Trust,
Scudder Fund, T. Rowe Price International Series, T. Rowe Price Fixed Income
Series, and T. Rowe Price Equity Series are referred to as the "Series Funds").
Because the Accumulation Value will increase or decrease in accordance with the
investment experience of the selected Subaccounts, the Owner bears the entire
investment risk with respect to Purchase Payments allocated to, and amounts
transferred to, the Variable Account. (See "The Variable Account," p.11.)
The Fixed Account. The Fixed Account guarantees safety of principal and a
minimum 3% effective annual return on Purchase Payments allocated to, and
amounts transferred to, the Fixed Account. Companion may, in its sole
discretion, declare a higher current interest rate. A current interest rate is
guaranteed for at least one year. (See "The Fixed Account," p.18.)
Purchase Payments
A Policy may be purchased with an Initial Purchase Payment of at least
$5,000 either on a non-tax qualified basis ("Nonqualified Policy") or in
connection with retirement plans or individual retirement accounts that qualify
for favorable federal income tax treatment ("Qualified Policy"). An Owner may
pay additional Purchase Payments of at least $500 each at any time prior to the
Annuity Starting Date and up to the Policy Anniversary next following such
Owner's 83rd birthday. There is no deduction from Purchase Payments for sales or
administrative expenses, although there is a Withdrawal Charge. (See "Withdrawal
Charge," p. 25.)
Purchase Payments will be allocated among the Eligible Investments (that
is, among the Fixed Account and/or the Subaccounts of the Variable Account) in
accordance with the allocation percentages specified by the Owner in the Policy
application. Any allocation must be in whole percentages, and the total
allocation must equal 100%. (The Policy provides for a "Free Look Period" during
which the Owner can return the Policy for a full refund of the Accumulation
Value.) Allocations for additional Purchase Payments may be changed by sending
Written Notice to Companion's Service Office.
Transfers
An Owner can transfer Accumulation Value from one Subaccount to another
Subaccount or to the Fixed Account with certain limitations. The minimum amount
which may be transferred is the lesser of $500 or the entire Subaccount Value.
However, following a transfer out of a particular Subaccount, at least $500 must
remain in that Subaccount. Transfers out of the Variable Account currently may
be made as often as the Owner wishes by sending Written Notice to the Service
Office.
There is no charge for the first 12 transfers during any Policy Year.
However, a charge of $10 may be imposed for any transfers from Subaccounts in
excess of 12 per Policy Year. No such charge will be imposed on transfers out of
the Fixed Account.
Transfers from the Fixed Account to one or more Subaccounts of the Variable
Account may be made only once each Policy Year. The maximum amount that can be
transferred out of the Fixed Account during any Policy Year will be determined
periodically by Companion. Such amount will not be less than 10% of the Fixed
Account Value on the date of the transfer. (See "Transfers," p. 18.)
Transfers from the Fixed Account may be delayed up to 6 months.
Withdrawals
The Owner may elect to surrender the Policy for its Cash Surrender Value,
or to withdraw a portion of the Cash Surrender Value ($500 minimum) at any time
prior to the earlier of the Owner's death or the Annuity Starting Date and after
the Annuity Starting Date if Payout Option 2 is elected as a variable annuity
payout option. The Cash Surrender Value equals the Accumulation Value less any
applicable Withdrawal Charge and any applicable Policy Fee. A surrender or
withdrawal request must be made by Written Request, and a request for a partial
withdrawal may specify the Eligible Investment(s) from which the withdrawal is
to be made, but no more than a pro-rata amount can be deducted from the Fixed
Account. If the Owner does not provide specific withdrawal instructions, the
withdrawal will be made pro-rata from each Eligible Investment. There is
currently no limit on the frequency or timing of withdrawals from the Variable
Account, but surrenders and partial withdrawals from the Fixed Account may be
delayed for up to six months. Withdrawals may be taxable, and subject to a
Withdrawal Charge and/or a tax penalty.(See "Federal, State and Local Taxes," p.
27.) If the Contract is issued pursuant to a Qualified Plan, withdrawals may be
restricted by applicable law or the terms of the Qualified Plan.
Charges and Deductions
Withdrawal Charge. In order to permit maximum investment of Purchase
Payments, Companion does not deduct sales or other charges at the time of
investment. However, Purchase Payments surrendered or withdrawn within seven
years after they were made will be subject to a Withdrawal Charge to partially
cover sales expenses, but each Policy Year up to 15% of the Accumulation Value
may be withdrawn as of the date of the first withdrawal that Policy Year without
imposition of the Withdrawal Charge. In addition, amounts applied to provide a
death benefit or applied after the second Policy Year to the Payout Option that
provides a Lifetime Income (Option 4) will not be subject to a Withdrawal
Charge. The applicable Withdrawal Charge is calculated separately as to each
Purchase Payment based on the period of time elapsed since the Purchase Payment
was made. There will be no Charge imposed on any Purchase Payments in connection
with a withdrawal or surrender that occurs more than seven years after the
Purchase Payment was made. The Withdrawal Charge is 7% of any Purchase Payment
withdrawn within one year after the Purchase Payment is made, and the percentage
declines by 1% each year to zero after the seventh year following the date of
the Purchase Payment. For purposes of calculating the Withdrawal Charge, the
oldest Purchase Payment is deemed to be withdrawn first (a first-in, first-out
arrangement), and all Purchase Payments are deemed to be withdrawn before any
earnings. (See "Withdrawal Charge," p. 25.)
Account Charges. Companion deducts a daily charge equal to a percentage of
the net assets in the Variable Account for the mortality and expense risks
assumed by Companion. The annual rate of this charge is 1.00% of the value of
each Subaccount's net assets. (See "Mortality and Expense Risk Charge," p. 26.)
Companion also deducts a daily Administrative Expense Charge from the net
assets of the Variable Account to partially cover expenses incurred by Companion
in connection with the administration of the Variable Account and the Policies.
The annual rate of this charge is .20% of the value of each Subaccount's net
assets. (See "Administrative Charges," p. 26.)
The account charges for mortality and expense risks and administrative
expenses are guaranteed not to increase.
Annual Policy Fee. There is also an annual Policy Fee for Policy
maintenance and related administrative expenses. This fee is $30 per year and is
deducted from the Accumulation Value on the last Valuation Date of each Policy
Year (and upon complete surrender of the Policy). This fee will be waived if the
Accumulation Value is greater than $50,000 on the last Valuation Date of the
applicable Policy Year. This fee will not be increased in the future. (See
"Administrative Charges," p. 26.)
Transfer Fee. No fee is imposed for transfers from the Fixed Account or for
the first 12 transfers from Subaccounts of the Variable Account in each Policy
Year. However, a $10 Transfer Fee may be imposed for the thirteenth and each
subsequent request to transfer Accumulation Value from a Subaccount during a
single Policy Year. This fee will not be increased in the future.
(See "Transfer Fee," p. 26.)
Taxes. No deductions are currently made for federal, state, or local income
taxes. Should Companion determine that charges for any such taxes should be
imposed with respect to any of the Accounts, Companion may deduct such taxes or
the economic burden thereof from Purchase Payments or from amounts held in the
relevant Account. (See "Federal, State and Local Taxes," p. 27.)
Charges Against the Series Funds. The value of the net assets of the
Subaccounts of the Variable Account will reflect the investment advisory fee and
other expenses incurred by the Portfolios of the Series Funds. (See "Other
Expenses Including Investment Advisory Fees," p. 27.)
Expense Data. The charges and deductions are summarized in the following
table. The purpose of this table is to help the Owner understand the costs and
expenses that the Owner will bear directly and indirectly. This table and the
examples that follow should be considered only in conjunction with the detailed
descriptions under the heading "Charges and Deductions" of this prospectus. This
tabular information regarding expenses assumes that the entire Accumulation
Value is in the Variable Account and reflects expenses of the Variable Account
as well as of the Portfolios.
Policy Owner Transaction Expenses
========================================== =====================================
Maximum Withdrawal Charge (as a % of each 7%
Purchase Payment Surrendered)1
========================================== =====================================
Transfer Fee First 12 Transfers Per Year: NO FEE
More Than 12 in One Year: $10 each
========================================== =====================================
Variable Account Annual Expenses (as a percentage of account value)
- ------------------------------------------------- ------------------------------
Mortality and Expense Risk Fees 1.00%
- ------------------------------------------------- ------------------------------
Administrative Expense Charge 0.20%
================================================= ------------------------------
Total Variable Account Annual Expenses 1.20%
================================================= ------------------------------
Other Annual Expenses
================================================================ ---------------
Annual Policy Fee $30 Per Year
================================================================ ---------------
Series Fund Annual Expenses Management Other Total Series
(as a percentage of average net assets)2 Fees Expenses Fund Annual
Expenses
- ------------------------------------------- ---------------------- =============
Portfolio:
Alger American Growth 0.75% 0.10% 0.85%
Alger American Small Capitalization 0.85% 0.07% 0.92%
Federated Prime Money Fund II 0.50% 0.30% 0.80%
Federated Fund for U.S. Government
Securities II 0.00% 0.80% 0.80%
Fidelity VIP II Asset Manager: Growth 0.71% 0.29% 1.00%
Fidelity VIP Equity Income 0.51% 0.10% 0.61%
Fidelity VIP II Contrafund 0.61% 0.11% 0.72%
MFS Emerging Growth 0.75% 0.25% 1.00%
MFS High Income Fund 0.75% 0.25% 1.00%
MFS Research 0.75% 0.25% 1.00%
MFS World Government 0.75% 0.25% 1.00%
Scudder International 0.88% 0.21% 1.09%
T. Rowe Price Equity-Income * 0.00% 0.85% 0.85%
T. Rowe Price International * 0.00% 1.05% 1.05%
T. Rowe Price Limited-Term Bond * 0.00% 0.70% 0.70%
T. Rowe Price New America Growth * 0.00% 0.85% 0.85%
T. Rowe Price Personal Strategy Balanced * 0.00% 0.90% 0.90%
- ------------------------------------------- ----------------------==============
================================================================================
*.T. Rowe Price Funds do not itemize management fees and other expenses.
================================================================================
1 Each Policy Year up to 15% of the Accumulation Value as of the date of
the first withdrawal that year can be withdrawn without a Withdrawal Charge.
Thereafter, the Withdrawal Charge is calculated separately for each Purchase
Payment withdrawn based on the number of years elapsed since the Purchase
Payment was made; it is 7% in the first year after a Purchase Payment is made
and then decreases by 1% in each successive year to 0% after the seventh year.
2 The $30 annual Policy Fee is reflected as a daily 0.10% charge in the
Examples, based on an average Accumulation Value of $30,000.
<TABLE>
<CAPTION>
======================== ====================== =======================
Examples.3 1. Surrender Policy 2. Annuitize Policy 3. Policy is not
An Owner would pay the following at end of the time at the end of the surrendered and is
expenses on a $1,000 investment, period or annuitize time period and not annuitized
assuming a 5% annual return on and Annuity Option 4 Annuity Option 4
assets if: (Lifetime Income) is (Lifetime Income) IS
NOT chosen chosen
================================== ----- ----- ----- ------ ----- ---- ----- ----- ----- ---- ----- ======
Portfolio 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr
================================== ===== ===== ===== ====== ===== ==== ===== ===== ===== ==== ===== ======
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alger American Growth $84 117 151 268 $84 68 118 268 $22 $68 118 268
Alger American Small 85 119 155 277 85 70 122 277 22 70 122 277
Capitalization 83 115 148 262 83 66 116 262 21 66 116 262
Federated Prime Money Fund II
Federated Fund for U.S. 83 115 148 262 83 66 116 262 21 66 116 262
Government
Securities II 85 122 159 287 85 72 127 287 23 72 127 287
Fidelity VIP II Asset Manager: 83 113 144 251 83 64 111 251 20 64 111 251
Growth 82 109 138 238 82 60 105 238 19 60 105 238
Fidelity VIP II Contrafund 79 99 120 197 79 50 88 197 16 50 88 197
Fidelity VIP Equity Income 85 122 159 287 85 72 127 287 23 72 127 287
Fidelity VIP II Index 500 85 122 159 287 85 72 127 287 23 72 127 287
MFS Emerging Growth 85 122 159 287 85 72 127 287 23 72 127 287
MFS High Income Fund 85 122 159 287 85 72 127 287 23 72 127 287
MFS Research 85 122 159 287 85 72 127 287 23 72 127 287
MFS Value Series 88 129 173 318 88 80 141 318 26 80 141 318
MFS World Government 88 129 173 318 88 80 141 318 26 80 141 318
Pioneer Capital Growth 90 137 182 337 90 88 149 337 28 88 149 337
Pioneer Real Estate 83 111 141 244 83 62 108 244 20 62 108 244
Scudder Global Discovery 86 124 164 297 86 75 131 297 24 75 131 297
Scudder Growth & Income 84 117 151 268 84 68 118 268 22 68 118 268
Scudder International 86 123 162 293 86 74 129 293 24 74 129 293
T. Rowe Price Equity Income 82 112 143 249 82 63 110 249 20 63 110 249
T. Rowe Price International 84 117 151 268 84 68 118 268 22 68 118 268
T. Rowe Price Limited-Term Bond
T. Rowe Price New America Growth 84 118 154 274 84 69 121 274 22 69 121 268
T. Rowe Price Personal Strategy
Balanced
================================== ===== ===== ===== ====== ===== ==== ===== ===== ===== ==== ===== ======
</TABLE>
3 The $30 annual Policy Fee is reflected as a daily 0.10% charge in these
Examples, based on an average Accumulation Value of $30,000.
The assumed 5% annual return is hypothetical and should not be considered a
representation or indication of past or future expenses (in either the Variable
or Fixed Account), which could be greater or lesser than the 5% rate assumed
solely for purposes of these examples.
Death Benefit
In the event that any Owner dies prior to the Annuity Starting Date (and the
Policy is in force), the death benefit payable to the Beneficiary is calculated
and is payable upon Companion's receipt of Due Proof of Death of any Owner, as
well as an election of the method of settlement. If any Owner dies, the death
benefit will equal the greater of (a) the Accumulation Value (without deduction
of the Withdrawal Charge) on the later of the date on which Due Proof of Death
or an election of Payout Option is received by Companion's Service Office; or
(b) the sum of Purchase Payments less partial withdrawals. No Withdrawal Charge
is imposed upon amounts paid as a death benefit. Subject to any limitations of
state or federal law, the death benefit may be paid as either a lump sum cash
benefit or as an Annuity. (See "Death Benefit," p. 24.)
Free Look Right
The Policy Owner may, within 10 days after receipt, examine the Policy and
return it to Companion's Service Office or the agent from whom it was purchased
for a refund. Return of the Policy is effective upon being postmarked, properly
addressed, and postage pre-paid. Companion will pay the refund within seven (7)
days after it receives written notice of cancellation and the returned Policy.
Companion will promptly refund the Accumulation Value calculated on the date
Companion receives the Policy and refund request. This amount may be more or
less than the Purchase Payments made.
Federal Income Tax Consequences of Investment in the Policy
With respect to Owners who are natural persons under existing tax law, there
should be no federal income tax on increases (if any) in the Accumulation Value
until a distribution under the Policy occurs (e.g., a withdrawal or Annuity
Payment) or is deemed to occur (e.g., a pledge or assignment of a Policy).
Generally, a portion of any distribution or deemed distribution will be taxable
as ordinary income. The taxable portion of certain distributions will be subject
to withholding unless the recipient (if permitted) elects otherwise. In
addition, a penalty tax of 10% of the amount withdrawn may apply to certain
distributions or deemed distributions under the Policy made prior to the Owner's
attaining age 59 1/2. (See "Certain Federal Income Tax Consequences," p. 27.)
Inquiries and Written Notices and Requests
Any questions about procedures or the Policy, or any Written Notice or
Written Request required to be sent to Companion, should be sent to Companion's
Service Office: Companion Variable Product Service, P.O. Box 3664, Omaha,
Nebraska 68103-0664. Telephone requests and inquiries may be made by calling
1-800-494-0067. All inquiries, Notices and Requests should include the Policy
number, the Owner's name and the Annuitant's name.
NOTE: THE FOREGOING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY THE DETAILED
INFORMATION IN THE REMAINDER OF THIS PROSPECTUS AND IN THE STATEMENT OF
ADDITIONAL INFORMATION AND IN THE PROSPECTUSES FOR THE SERIES FUNDS AND IN THE
POLICY, ALL OF WHICH SHOULD BE REFERRED TO FOR MORE DETAILED INFORMATION. THIS
PROSPECTUS GENERALLY DESCRIBES ONLY THE POLICY AND THE VARIABLE ACCOUNT.
SEPARATE PROSPECTUSES DESCRIBE THE SERIES FUNDS. (THERE IS NO PROSPECTUS FOR THE
FIXED ACCOUNT SINCE INTERESTS IN THE FIXED ACCOUNT ARE NOT SECURITIES. SEE "THE
FIXED ACCOUNT," P. 18.)
FINANCIAL STATEMENTS
The Financial Statements for Companion and the related independent auditor's
report are contained in the Statement of Additional Information, which is
available free upon request.
As of the effective date of this prospectus, the Variable Account had less
than one year of sales of the Ultrannuity Series V Variable Annuity.
Accordingly, no condensed financial information is presented for such Contracts.
COMPANION LIFE INSURANCE COMPANY
Companion Life Insurance Company, 401 Theodore Fremd Avenue, Rye, New York
10580, is a stock life insurance company. It was incorporated under the laws of
the State of New York on June 3, 1949. It is principally engaged in the sale of
life insurance and annuity policies in the State of New York. As of December 31,
1996, Companion had assets of over $413 million. Companion is a wholly-owned
subsidiary of United of Omaha Life Insurance Company. Both Companion and United
of Omaha are Mutual of Omaha Companies.
Companion may from time to time publish (in advertisements, sales literature
and reports to Owners) the ratings and other information assigned to it by one
or more independent rating organizations such as A.M. Best Company, and Duff &
Phelps. The purpose of the ratings is to reflect the financial strength and/or
claims-paying ability of Companion, and the ratings should not be considered as
bearing on the investment performance of assets held in the Variable Account.
Each year the A.M. Best Company reviews the financial status of thousands of
insurers, culminating in the assignment of Best's Ratings. These ratings reflect
A.M. Best Company's current opinion of the relative financial strength and
operating performance of an insurance company in comparison to the norms of the
life/health insurance industry. In addition, the claims-paying ability of
Companion, as measured by Duff & Phelps may be referred to in such
advertisements, sales literature, or reports. These ratings are opinions
regarding an operating insurance company's financial capacity to meet the
obligations of its insurance and annuity policies in accordance with their
terms. Such ratings do not reflect the investment performance of the Variable
Account or the degree of risk associated with an investment in the Variable
Account.
THE ELIGIBLE INVESTMENTS
Purchase Payments made under a Policy may be allocated to one of the 23
Subaccounts of the Variable Account, to the Fixed Account, or to a combination
of these Eligible Investment(s).
The Variable Account
The Companion Life Separate Account C of Companion Life Insurance Company
(the "Variable Account") was established as a separate investment account under
the laws of the State of New York on February 18, 1994. The Variable Account
will receive and invest the Purchase Payments under the Policies that are
allocated to it for investment in shares of a Series Fund.
The Variable Account currently is divided into 23 Subaccounts. Each
Subaccount invests exclusively in shares of a Portfolio of one of the Series
Funds. Under New York law, the assets of the Variable Account are owned by
Companion, but they are held separately from the other assets of Companion and
are not chargeable with any liabilities arising out of any other separate
investment account or any other business of Companion which has no specific and
determinable relation to or dependence upon the Variable Account. The income,
gains and losses, realized or unrealized, from assets allocated to the Variable
Account are credited to or charged against the Variable Account, without regard
to other income, gains, or losses of Companion. The investment performance of
any Subaccount should be entirely independent of the investment performance of
Companion's general account assets or any other accounts maintained by
Companion.
The Variable Account is registered with the Securities and Exchange
Commission (the "SEC") under the Investment Company Act of 1940 as a unit
investment trust. However, the SEC does not supervise the management or the
investment practices or policies of the Variable Account or Companion.
The Series Funds. Each Subaccount of the Variable Account will invest
exclusively in shares of a specific Portfolio of one of the Series Funds, each
of which is a mutual fund registered with the SEC under the Investment Company
Act of 1940 (the "1940 Act") as an open-end, diversified management investment
company. 4/ The assets of each Portfolio of each Series Fund are held separate
from the assets of that Series Fund's other Portfolios, and each Portfolio has
its own distinct investment objectives and policies. Each Portfolio operates as
a separate investment fund, and the income or losses of one Portfolio generally
have no effect on the investment performance of any other Portfolio.
Each of the Series Funds is managed by an investment adviser registered with
the SEC under the Investment Advisers Act of 1940, as amended. Each investment
manager is responsible for selecting Portfolio investments consistent with the
investment objectives and policies of the Portfolio, and conducts securities
trading for the Portfolio. Alger Management is responsible for the overall
administration of the Alger American Fund, subject to the supervision of the
Alger Fund Board of Trustees; Federated Advisers is responsible for the
portfolio investment decisions of the Insurance Management Series, subject to
direction by the Insurance Management Series Trustees; Fidelity Management &
Research Company ("FMR") is the manager of the Fidelity VIP Fund and Fidelity
VIP Fund II. On behalf of the Asset Manager: Growth Portfolio of the Fidelity
VIP Fund II, FMR has entered into sub-advisory agreements with Fidelity
Investment Management and Research (U.K.) Inc. ("FMR (U.K.)") and Fidelity
Management and Research (Far East) Inc. ("FMR Far East") pursuant to which those
entities provide research and investment recommendations with respect to
companies based outside of the United States. FMR (U.K.) primarily focuses on
companies based in Europe, and FMR Far East focuses primarily on companies based
in Asia and the Pacific Basin. Massachusetts Financial Services Company is
responsible for the management of the assets of the MFS Variable Insurance
Trust. Pioneer Fund Group is responsible for the management of the assets of the
Pioneer Variable Contracts Trust, subject to direction by the Trust's own
Trustees. The investment advisor for each Pioneer Variable Contract's Trust
portfolio is Pioneer Management Corporation. Scudder, Stevens & Clark, Inc.
manages the daily business and affairs of the Scudder Fund, subject to policies
established by the Trustees of Scudder Variable Life Investment Fund. T. Rowe
Price Associates, Inc. is responsible for selection and management of the
portfolio investments of T. Rowe Price Equity Series and T. Rowe Price Fixed
Income Series. Rowe Price-Fleming International, Inc., incorporated in 1979 as a
joint venture between T. Rowe Price Associates, Inc. and Robert Fleming Holdings
Limited, is responsible for selection and management of the portfolio
investments of T. Rowe Price International Series.
4/ THE REGISTRATION OF THE SERIES FUNDS DOES NOT INVOLVE SUPERVISION OF THE
MANAGEMENT OR INVESTMENT PRACTICES OR POLICIES OF THE SERIES FUNDS BY THE
SEC.
The investment objectives of each Portfolio are summarized as follows:
Alger American Fund
Alger American Growth Portfolio -- seeks long-term capital appreciation by
investing in a diversified portfolio of equity securities, primarily of
companies with total market capitalization of $1 billion or greater.
Alger American Small Capitalization Portfolio -- seeks long-term capital
appreciation by investing in a diversified portfolio of equity securities,
primarily of smaller, newer companies with total market capitalization of
less than $1 billion. The securities in such companies may have limited
marketability and may be subject to more abrupt or erratic market movements
than securities of larger, more established companies or the market
averages in general.(*)
Insurance Management Series
Federated Prime Money Fund II Portfolio -- invests in money market
instruments maturing in thirteen months or less to achieve current income
consistent with stability of principal and liquidity. The Portfolio
attempts to maintain a stable net asset value of $1.00 per share, but there
can be no assurance the Portfolio will be able to do so.
Federated Fund for U.S. Government Securities II Portfolio -- seeks current
income by investing in a diversified portfolio limited to U.S. government
securities.
Fidelity Variable Insurance Products Fund
Fidelity VIP Equity-Income Portfolio -- seeks reasonable income by investing
mainly in income-producing equity securities. In selecting investments, the
Portfolio also considers the potential for capital appreciation. The
Portfolio seeks to achieve a yield that beats that of the S&P 500. The
Portfolio does not expect to invest in debt securities of companies that do
not have proven earnings or credit.(*)
Fidelity Variable Insurance Products Fund II
Fidelity VIP II Asset Manager: Growth Portfolio -- seeks to obtain high total
return with reduced risk over the long-term by allocating its assets among
stocks, bonds, and short-term fixed-income instruments. Although the
Portfolio seeks to reduce its overall risk by diversifying among different
types of investments, the fund aggressively invests in a wide variety of
security types, including stocks and bonds issued in developing countries
and derivative transactions. The Portfolio spreads investment risk by
limiting its holdings in any one company or industry.(*)
Fidelity Contrafund Portfolio -- seeks to increase the value of the
Portfolio's return over the long term by investing in securities of
companies that are undervalued or out-of-favor. This strategy can lead to
investments in domestic or foreign companies, many of which may not be well
known. The stocks of small companies often involve more risk than those of
larger companies. The Portfolio may use various investment techniques to
hedge the Portfolio's risk, but there is no guarantee that these strategies
will work as intended.(*)
Fidelity Index 500 Portfolio -- seeks to match the total return of the S&P
500 while keeping expenses low. The Portfolio utilizes a "passive" or
"indexing" approach and tries to allocate its assets similarly to those of
the index. Normally 80% (65% if fund assets are below $20 million) of the
fund's assets are invested in equity securities of companies that compose
the S&P 500. The Standard & Poor's Corporation is neither an affiliate nor
a sponsor of the fund.
MFS Variable Insurance Trust
MFS Emerging Growth Portfolio -- seeks to provide long-term growth of capital
through investing primarily in common stocks of emerging growth companies,
which involves greater risk than is customarily associated with investments
in more established companies. The Portfolio may invest in a limited extent
in lower rated fixed income securities or comparable unrated securities.(*)
MFS High Income Portfolio -- seeks high current income by investing primarily
in a diversified portfolio of fixed income securities, some of which may
involve equity features. The Portfolio may invest in lower rated fixed
income securities or comparable unrated securities.(*)
MFS Research Portfolio -- seeks to provide long-term growth of capital and
future income by investing a substantial proportion of its assets in the
common stocks or securities convertible into common stocks of companies
believed to possess better than average prospects for long-term growth. No
more than 5% of the Portfolio's convertible securities, if any, will
consist of securities in lower rated categories or securities believed to
be of similar quality to lower rated securities. The Portfolio may invest
in a limited extent in lower rated fixed income securities or comparable
unrated securities.(*)
MFS Value Series Portfolio -- seeks capital appreciation by investing
primarily in common stocks, including to a limited extent foreign
securities which are not traded on a U.S. exchange. The Portfolio may
invest to a limited extent in lower rated fixed income securities or
comparable unrated securities. (*)
MFS World Government Portfolio -- seeks preservation and growth of capital,
together with moderate current income by investing its assets in an
internationally diversified portfolio consisting primarily of debt
securities and to a lesser extent equity securities. The Portfolio
investments are expected to consist primarily of securities which are of
relatively high quality and minimal credit risk. However, an error of
judgment in selecting a currency or an interest rate environment could
result in a loss of capital, and a held security whose quality deteriorates
significantly will be sold only if the Portfolio investment adviser
believes it is advantageous to do so.
Pioneer Variable Contracts Trust
Pioneer Capital Growth Portfolio - seeks capital appreciation by investing in
a diversified portfolio of securities consisting primarily of common
stocks.
Pioneer Real Estate Portfolio - seeks long-term growth of capital by
investing primarily in securities of real estate investment trusts (REITs)
and other real estate industry companies.
Current income is the Portfolio's secondary investment objective.
Scudder Variable Life Investment Fund
Scudder Global Discovery Portfolio -- seeks above-average capital
appreciation over the long term by investing primarily in the equity
securities of small companies located throughout the world, including to a
limited extent in lower rated fixed income securities or comparable unrated
securities. Since the Portfolio normally will invest in both U.S. and
foreign securities markets, changes in the Portfolio's unit value may have
a low correlation with movements in the U.S. markets. (*)
Scudder Growth & Income Portfolio -- seeks long term growth of capital,
current income and growth of income by investing primarily in common
stocks, preferred stocks, and securities convertible into common stocks of
companies which offer the prospect for growth of earnings while paying
higher than average current dividends.
Scudder International Portfolio -- seeks long-term growth of capital
primarily through diversified holdings of marketable foreign equity
investments. The Portfolio invests in companies, wherever organized, which
do business primarily outside the United States. The Portfolio intends to
diversify investments among several countries, and does not intend to
concentrate investments in any particular industry.
T. Rowe Price International Series, Inc.
T.Rowe Price International Stock Portfolio -- seeks a total return on its
assets from long-term growth of capital and income, by investing
substantially all of its assets in common stocks of established non-U.S.
companies. The Portfolio will not purchase any debt security which at the
time of purchase is rated below investment grade. This would not prevent
the Portfolio from retaining a security downgraded to below investment
grade after purchase.
T. Rowe Price Equity Series, Inc.
T.Rowe Price New America Growth Portfolio -- seeks long-term growth of
capital through investments primarily in common stocks of U.S. growth
companies which operate in service industries believed to be above-average
performers in their fields. Total return will consist primarily of capital
appreciation or depreciation.
T.Rowe Price Equity-Income Portfolio -- Seeks to provide substantial dividend
income and also capital appreciation by investing primarily in
dividend-paying common stocks of established companies.(*)
T.Rowe Price Personal Strategy Balanced Portfolio -- seeks the highest total
return over time consistent with an emphasis on both capital appreciation
and income. There are no limitations on market capitalization or types of
stock the Portfolio can hold. While bond holdings are primarily investment
grade, the Portfolio can also invest in more volatile below-investment
grade bonds.(*)
T. Rowe Price Fixed Income Series, Inc.
T.Rowe Price Limited-Term Bond Portfolio -- seeks a high level of income
consistent with modest price fluctuation by investing primarily in
investment grade debt securities.
(*) THE PORTFOLIOS' INVESTMENT STRATEGIES MAY PROVIDE THE OPPORTUNITY OF HIGHER
THAN AVERAGE YIELDS BY INVESTING IN SECURITIES WITH HIGHER THAN AVERAGE
RISK, SUCH AS LOWER AND UNRATED DEBT AND COMPARABLE EQUITY INSTRUMENTS.
PLEASE CONSULT EACH PORTFOLIO'S SERIES FUND PROSPECTUS ACCOMPANYING THIS
PROSPECTUS FOR MORE INFORMATION ABOUT THE RISK ASSOCIATED WITH SUCH
INVESTMENTS.
THERE IS NO ASSURANCE THAT ANY PORTFOLIO WILL ACHIEVE ITS STATED OBJECTIVE.
MORE DETAILED INFORMATION, INCLUDING A DESCRIPTION OF EACH PORTFOLIO'S
INVESTMENT OBJECTIVE AND POLICIES AND A DESCRIPTION OF RISKS INVOLVED IN
INVESTING IN EACH OF THE PORTFOLIOS AND OF EACH PORTFOLIO'S FEES AND EXPENSES,
IS CONTAINED IN THE PROSPECTUSES FOR THE SERIES FUNDS, CURRENT COPIES OF WHICH
ACCOMPANY THIS PROSPECTUS. INFORMATION CONTAINED IN THE SERIES FUNDS'
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING IN A SUBACCOUNT OF THE
VARIABLE ACCOUNT.
An investment in the Variable Account, or in any Portfolio, including the
Money Market Portfolio, is not insured or guaranteed by the U.S. Government and
there can be no assurance that the Money Market Portfolio will be able to
maintain a stable net asset value per share.
Addition, Deletion, or Substitution of Investments. Companion does not
control the Series Funds and cannot and does not guarantee that any of the
Portfolios will always be available for Purchase Payments, allocations, or
transfers. Companion retains the right, subject to any applicable law, to make
certain changes in the Variable Account and its investments. Companion reserves
the right to eliminate the shares of any Portfolio held by a Subaccount and to
substitute shares of another Portfolio of a Series Fund, or of another
registered open-end management investment company for the shares of any
Portfolio, if the shares of the Portfolio are no longer available for investment
or if, in Companion's judgment, investment in any Portfolio would be
inappropriate in view of the purposes of the Variable Account. To the extent
required by the 1940 Act, substitutions of shares attributable to an Owner's
interest in a Subaccount will not be made without prior notice to the Owner and
the prior approval of the SEC. If required, approval of or change of any
investment policy will be filed with the Insurance Department of any state in
which the Policy is sold. Nothing contained herein shall prevent the Variable
Account from purchasing other securities for other series or classes of variable
annuity policies, or from effecting an exchange between series or classes of
variable annuity policies on the basis of requests made by Owners.
New Subaccounts may be established when, in the sole discretion of Companion,
marketing, tax, investment or other conditions warrant. Any new Subaccounts may
be made available to existing Owners on a basis to be determined by Companion.
Each additional Subaccount will purchase shares in a Portfolio of a Series Fund
or in another mutual fund or investment vehicle. Companion may also eliminate
one or more Subaccounts if, in its sole discretion, marketing, tax, investment
or other conditions warrant such change. In the event any Subaccount is
eliminated, Companion will notify Owners and request a reallocation of the
amounts invested in the eliminated Subaccount. If no such reallocation is
provided by the Owner, Companion will reinvest the amounts invested in the
eliminated Subaccount in the Subaccount that invests in the Money Market
Portfolio (or in a similar portfolio of money market instruments).
In the event of any such substitution or change, Companion may, by
appropriate endorsement, make such changes in the Policies as may be necessary
or appropriate to reflect such substitution or change. Furthermore, the Variable
Account may be (i) operated as a management company under the 1940 Act or any
other form permitted by law, (ii) deregistered under the 1940 Act in the event
such registration is no longer required or (iii) combined with one or more other
separate accounts. To the extent permitted by applicable law, Companion also may
transfer the assets of the Variable Account associated with the Policies to
another account or accounts.
Historical Performance Data
From time to time, Companion may advertise or include in sales literature
yields, effective yields, and total returns for the Subaccounts of the Variable
Account. THESE FIGURES ARE BASED ON HISTORICAL PERFORMANCE AND DO NOT INDICATE
OR PROJECT FUTURE PERFORMANCE. Performance relative to certain performance
rankings and indices compiled by independent organizations may also be
advertised or included in sales literature. More detailed information as to the
calculation of performance information, as well as comparisons with unmanaged
market indices, appears in the Statement of Additional Information.
Standardized Performance Data. Effective yields and total returns for the
Subaccounts are based on the investment performance of the corresponding
Portfolios of the Series Funds. The Series Funds' performance in part reflects
the Series Funds' expenses. See the Prospectuses for the Series Funds.
The yield of the Money Market Subaccount refers to the annualized income
generated by an investment in the Subaccount over a specified seven-day period.
The yield is calculated by assuming that the income generated for that seven-day
period is generated each seven-day period over a 52-week period and is shown as
a percentage of the investment. The effective yield is calculated similarly but,
when annualized, the income earned by an investment in the Subaccount is assumed
to be reinvested. The effective yield will be slightly higher than the yield
because of the compounding effect of this assumed reinvestment.
The yield of a Subaccount (except the Money Market Subaccount) refers to
the annualized income generated by an investment in the Subaccount over a
specified 30-day or one-month period. The yield is calculated by assuming that
the income generated by the investment during that 30-day or one-month period is
generated each period over a 12-month period and is shown as a percentage of the
investment.
Yield quotations do not reflect the Withdrawal Charge.
The total return of a Subaccount refers to return quotations assuming
Accumulation Value has been held in the Subaccount for various periods of time
including, but not limited to, a period measured from the date the Subaccount
commenced operations. When a Subaccount has been in operation for one, five, and
ten years, respectively, the total return for these periods will be provided.
The average annual total return quotations represent the average annual
compounded rates of return that would equate an initial investment of $1,000
under a Policy to the redemption value of that investment as of the last day of
each of the periods for which total return quotations are provided. Average
annual total return information shows the average percentage change in the value
of an investment in the Subaccount from the beginning date of the measuring
period to the end of that period. This standardized version of average annual
total return reflects all historical investment results, less all charges and
deductions applied against the Subaccount (including any Withdrawal Charge that
would apply if an Owner terminated the Policy at the end of each period
indicated).
Non-Standardized Performance Data. In addition to the standard version
described above, total return performance information computed on different
non-standard bases may be used in advertisements. Average annual total return
information may be presented, computed on the same basis as described above,
except deductions will not include the Withdrawal Charge. In addition, Companion
may from time to time disclose average annual total return in non-standard
formats and cumulative total return for Policies funded by the Subaccounts.
Companion may, from time to time, also disclose yield, standard total
returns, and non-standard total returns for the Portfolios of the Series Funds,
including such disclosure for periods prior to the dates the Subaccounts
commenced operations. For periods prior to the date the Subaccount commenced
operations, performance information for Policies will be calculated based on the
performance of the Series Fund Portfolios and the assumption that the
Subaccounts were in existence for the same periods as those indicated for the
Series Fund Portfolios, with the level of Policy charges that were in effect at
the inception of the Subaccounts (this is referred to as "hypothetical"
performance data). Such standardized but "hypothetical" average annual total
return information for the Subaccounts of Policies is as follows:
<TABLE>
<CAPTION>
================================================ ========= ========= ============ ===========
SUBACCOUNT STANDARDIZED 1 Year 5 Years 10 Years Since
"HYPOTHETICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/96 12/31/96 12/31/96 to
Subaccount (date of inception of corresponding % % % 12/31/96
Portfolio) %
================================================ ========= ========= ============ ===========
<S> <C> <C> <C> <C>
Alger American Growth (1/9/87) 5.24 14.55 N/A 17.15
Alger American Small Capitalization (9/21/88) -3.28 9.03 N/A 18.67
Federated Prime Money Fund II (11/21/94) -2.79 N/A N/A 1.44
Federated Fund for U.S. Government Securities
(3/28/94) -3.26 N/A N/A 2.62
Fidelity VIP II Asset Manager: Growth (1/3/95) 11.36 N/A N/A 16.95
Fidelity VIP II Contrafund (1/3/95) 12.64 N/A N/A 25.29
Fidelity VIP Equity Income (10/9/86) 6.11 15.87 12.28 11.98
Fidelity VIP II Index 500 (8/27/92) 14.05 N/A N/A 14.90
MFS Emerging Growth (7/24/95) 8.66 N/A N/A 18.67
MFS High Income (7/26/95) 3.81 N/A N/A 6.56
MFS Research (7/26/95) 13.59 N/A N/A 17.49
MFS Value Series (8/14/96) N/A N/A N/A 3.21
MFS World Government (6/14/94) -3.42 N/A N/A 4.20
Pioneer Capital Growth (7/15/90) 3.67 18.94 N/A 17.20
Pioneer Real Estate (10/25/93) 26.72 N/A N/A 10.78
Scudder Global Discovery (5/1/96) N/A N/A N/A -1.63
Scudder Growth & Income (5/2/94) 13.44 N/A N/A 18.22
Scudder International (5/1/87) 6.57 9.06 N/A 8.53
T. Rowe Price International (3/31/94) 6.50 N/A N/A 6.83
T. Rowe Price New America Growth (3/31/94) 11.51 N/A N/A 21.10
T. Rowe Price Equity Income (3/31/94) 11.01 N/A N/A 18.50
T. Rowe Price Limited-Term Bond (5/17/94) -4.14 N/A N/A 2.85
T. Rowe Price Personal Strategy Balanced
(12/31/94 ) 6.04 N/A N/A 16.59
================================================ ========= ========= ============ ===========
Such non-standardized (i.e., assuming no withdrawal charge) but hypothetical
average annual total return information for the Subaccounts is as follows:
================================================ --------- --------- ------------ ===========
SUBACCOUNT NON-STANDARDIZED 1 Year 5 Years 10 Years Since
"HYPOTHETICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/96 12/31/96 12/31/96 to
Subaccount (date of inception of corresponding % % % 12/31/96
Portfolio) %
================================================ ========= ========= ============ ===========
Alger American Growth (1/9/87) 11.90 15.14 N/A 17.15
Alger American Small Capitalization (9/21/88) 2.84 9.59 N/A 18.67
Federated Prime Money Fund II (11/21/94) 3.36 N/A N/A 3.55
Federated Fund for U.S. Government Securities
(3/28/94) 2.86 N/A N/A 4.26
Fidelity VIP II Asset Manager: Growth (1/3/95) 18.41 N/A N/A 20.07
Fidelity VIP II Contrafund (1/3/95) 19.76 N/A N/A 28.63
Fidelity VIP Equity Income (10/9/86) 12.82 16.73 12.28 11.98
Fidelity VIP II Index 500 (8/27/92) 21.26 N/A N/A 15.59
MFS Emerging Growth (7/24/95) 15.53 N/A N/A 23.07
MFS High Income (7/26/95) 10.37 N/A N/A 10.53
MFS Research (7/26/95) 20.78 N/A N/A 21.87
MFS Value Series (8/14/96) N/A N/A N/A 8.09
MFS World Government (6/14/94) 2.69 N/A N/A 5.99
Pioneer Capital Growth (7/25/90) 10.23 19.55 N/A 17.44
Pioneer Real Estate (10/25/93) 24.74 N/A N/A 11.99
Scudder Global Discovery (5/1/96) N/A N/A N/A 4.59
Scudder Growth & Income (5/2/94) 20.61 N/A N/A 20.16
Scudder International (5/1/87) 13.32 9.63 N/A 8.53
T. Rowe Price International (3/31/94) 13.24 N/A N/A 8.53
T. Rowe Price New America Growth (3/31/94) 18.56 N/A N/A 23.03
T. Rowe Price Equity Income (3/31/94) 18.04 N/A N/A 20.38
T. Rowe Price Limited-Term Bond (5/17/94) 1.93 N/A N/A 4.56
T. Rowe Price Personal Strategy Balanced
(12/31/94 ) 12.75 N/A N/A 19.68
================================================ ========= ========= ============ ===========
</TABLE>
THE FIGURES ABOVE ARE NOT AN INDICATION OF PRESENT, PAST, OR FUTURE PERFORMANCE
OF THE APPLICABLE SUBACCOUNTS OR OF THE ACTUAL PORTFOLIOS AVAILABLE UNDER THE
POLICY.
Companion may also disclose average annual total returns for Series Fund
Portfolios since their inception, including such disclosure for periods prior to
the date the Variable Account commenced operations. These figures do not reflect
the Variable Account or Policy expenses. Such average annual total return
information is as follows:
<TABLE>
<CAPTION>
================================================== ========= ======== ========== ==========
1 Year 5 Years 10 Years Since
Ended Ended Ended Inception
Series Fund 12/31/96 12/31/96 12/31/96 to
(date of inception) % % % 12/31/96
%
================================================== ========= ======== ========== ==========
<S> <C> <C> <C> <C>
Alger American Growth (1/9/89) 13.35 16.63 N/A 18.65
Alger American Small Capitalization (9/21/88) 4.18 11.02 N/A 20.21
Federated Prime Money Fund II (11/21/94) 4.75 N/A N/A 4.95
Federated Fund for U.S. Government Securities
(3/28/94) 4.20 N/A N/A 5.62
Fidelity VIP II Asset Manager: Growth (1/3/95) 20.04 N/A N/A 21.56
Fidelity VIP II Contrafund (1/3/95) 21.22 N/A N/A 30.19
Fidelity VIP Equity Income (10/9/86) 14.28 17.98 13.74 13.43
Fidelity VIP II Index 500 (8/27/92) 22.82 N/A N/A 17.08
MFS Emerging Growth (7/24/95) 17.02 N/A N/A 24.76
MFS High Income (7/26/95) 11.80 N/A N/A 12.00
MFS Research (7/26/95) 22.33 N/A N/A 23.46
MFS Value Series (8/14/96) N/A N/A N/A 8.78
MFS World Government (6/14/94) 4.03 N/A N/A 7.39
Pioneer Capital Growth (7/25/90) 11.66 20.34 N/A 17.48
Pioneer Real Estate (10/25/93) 36.46 N/A N/A 12.95
Scudder Global Discovery (5/1/96) N/A N/A N/A 5.50
Scudder Growth & Income (5/2/94) 22.17 N/A N/A 21.69
Scudder International (5/1/87) 14.78 11.05 N/A 9.93
T. Rowe Price International (3/31/94) 14.70 N/A N/A 9.94
T. Rowe Price New America Growth (3/31/94) 20.09 N/A N/A 24.60
T. Rowe Price Equity Income (3/31/94) 19.56 N/A N/A 21.93
T. Rowe Price Limited-Term Bond (5/17/94) 3.26 N/A N/A 5.97
T. Rowe Price Personal Strategy Balanced (12/31/94) 14.21 N/A N/A 21.22
================================================== ========= ======== ========== ==========
</TABLE>
Non-standard performance data will only be disclosed if the standard
performance data for the required periods is also disclosed. For additional
information regarding the calculation of other performance data, please refer to
the Statement of Additional Information.
In advertising and sales literature, the performance of each Subaccount
may be compared to the performance of other variable annuity issuers in general
or to the performance of particular types of variable annuities investing in
mutual funds, or mutual fund portfolios with investment objectives similar to
each of the Subaccounts. Lipper Analytical Services, Inc. ("Lipper") and the
Variable Annuity Research Data Service ("VARDS") are independent services which
monitor and rank the performance of variable annuity issuers in each of the
major categories of investment objectives on an industry-wide basis.
Lipper's rankings include variable life insurance issuers as well as
variable annuity issuers. VARDS rankings compare only variable annuity issuers.
The performance analyses prepared by Lipper and VARDS each rank such issuers on
the basis of total return, assuming reinvestment of distributions, but do not
take sales charges, redemption fees, or certain expense deductions at the
separate account level into consideration. In addition, VARDS prepares risk
adjusted rankings, which consider the effects of market risk on total return
performance. This type of ranking provides data as to which funds provide the
highest total return within various categories of funds defined by the degree of
risk inherent in their investment objectives.
Advertising and sales literature may also compare the performance of each
Subaccount to the Standard & Poor's Index of 500 Common Stocks, a widely used
measure of stock performance. This unmanaged index assumes the reinvestment of
dividends but does not reflect any "deduction" for the expense of operating or
managing an investment portfolio. Other independent ranking services and indices
may also be used as a source of performance comparison.
Companion may also report other information including the effect of
tax-deferred compounding on a Subaccount's investment returns, or returns in
general, which may be illustrated by tables, graphs, or charts. All income and
capital gains derived from Subaccount investments are reinvested and can lead to
substantial long-term accumulation of assets, provided that the underlying
portfolio's investment experience is positive.
The Fixed Account
This Prospectus is generally intended to serve as a disclosure document only
for the Policy and the Variable Account. For complete details regarding the
Fixed Account, see the Policy itself.
PURCHASE PAYMENTS ALLOCATED AND AMOUNTS TRANSFERRED TO THE FIXED ACCOUNT
BECOME PART OF THE GENERAL ACCOUNT ASSETS OF COMPANION. INTERESTS IN THE GENERAL
ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "1933
ACT"), NOR IS THE GENERAL ACCOUNT REGISTERED AS AN INVESTMENT COMPANY UNDER THE
1940 ACT. ACCORDINGLY, NEITHER THE GENERAL ACCOUNT NOR ANY INTERESTS THEREIN ARE
GENERALLY SUBJECT TO THE PROVISIONS OF THE 1933 OR 1940 ACTS, AND COMPANION HAS
BEEN ADVISED THAT THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION HAS NOT
REVIEWED THE DISCLOSURES IN THIS PROSPECTUS WHICH RELATE TO THE FIXED ACCOUNT.
The Fixed Account includes all the assets of Companion except those
segregated in the Variable Account or in any other separate investment account.
The Policy Owner may allocate Purchase Payments to the Fixed Account at the time
of a Purchase Payment or transfer amounts from the Variable Account to the Fixed
Account. Instead of the Policy Owner bearing the investment risk, as is the case
for Accumulation Value in the Variable Account, Companion bears the full
investment risk for all Accumulation Value in the Fixed Account. Companion has
sole discretion to invest the assets of its general account, including the Fixed
Account, subject to applicable law.
Companion guarantees that it will credit interest to amounts in the Fixed
Account at an effective rate of at least 3% per year. Companion may, in its sole
discretion, credit amounts in the Fixed Account with interest at a current
interest rate in excess of 3%. Once declared, a current interest rate will be
guaranteed for at least one year. One transfer out of the Fixed Account is
allowed each Policy Year. Moreover, the maximum amount that can be transferred
out of the Fixed Account during any Policy Year will be determined by Companion
in its sole discretion, but will not be less than 10% of Fixed Account Value on
the date of the transfer. No charge is imposed on such transfers. Companion
reserves the right to modify transfer privileges at any time. (See "Transfers,"
p. 18.) Partial withdrawals from the Fixed Account are limited to a pro rata
amount (with withdrawals from the Variable Account). Withdrawals and transfers
from the Fixed Account may be delayed for up to six months, and withdrawals may
be subject to a Withdrawal Charge. (See "Withdrawals," p. 21.) For purposes of
crediting interest, the oldest payment or transfer into the Fixed Account, plus
interest allocable to that payment or transfer, is considered to be withdrawn or
transferred out first; the next oldest payment plus interest is considered to be
transferred out next, and so on (this is a "first-in, first-out" procedure).
Companion guarantees that, at any time prior to the Annuity Starting Date,
the amount in the Fixed Account allocable to a particular Policy will be not be
less than the amount of the Purchase Payments allocated or transferred to the
Fixed Account, plus interest at an effective rate of 3% per year, plus any
excess interest credited to amounts in the Fixed Account, less any amounts
deducted from the Fixed Account in connection with partial withdrawals
(including any Withdrawal Charges) or transfers to the Variable Account.
The current interest rates will be determined by Companion in its sole
discretion.
COMPANION'S MANAGEMENT HAS COMPLETE AND SOLE DISCRETION TO DETERMINE THE
CURRENT INTEREST RATES. COMPANION CANNOT PREDICT OR GUARANTEE THE LEVEL OF
FUTURE CURRENT INTEREST RATES, EXCEPT THAT COMPANION GUARANTEES THAT FUTURE
CURRENT INTEREST RATES WILL NOT BE BELOW AN EFFECTIVE RATE OF 3% PER YEAR
COMPOUNDED ANNUALLY. THE POLICY OWNER BEARS THE RISK THAT CURRENT INTEREST RATES
WILL NOT EXCEED AN EFFECTIVE RATE OF 3% PER YEAR.
Transfers
Subject to the limitations and restrictions described below, transfers out of
a Subaccount of the Variable Account may be made any time prior to the Annuity
Starting Date, by sending Written Notice, signed by the Policy Owner, to the
Service Office. Companion reserves the right, at any time and without notice to
any party, to modify the transfer privileges under the Policy.
An Owner can transfer Accumulation Value from one Subaccount of the Variable
Account to another, or from the Variable Account to the Fixed Account within
certain limits. The minimum amount which may be transferred is the lesser of
$500 or the entire Subaccount Value. If the Subaccount Value remaining after a
transfer is less than $500, Companion will include that amount as part of the
transfer. Transfers out of a Subaccount currently may be made as often as the
Owner wishes, subject to the minimum amount specified above (Companion reserves
the right to otherwise limit or restrict transfers in the future or to eliminate
the transfer privilege). Companion reserves the right to restrict transfers from
the Variable Account to the Fixed Account of amounts previously transferred from
the Fixed Account, for a period of time determined by Companion.
A transfer fee of $10 may be imposed for any transfer in excess of 12 per
Policy Year. The transfer fee is deducted from the amount transferred. (See
"Charges and Deductions," p. 25.)
Transfers from the Fixed Account currently may be made once each Policy Year.
Transfers from the Fixed Account do not count toward the 12 free transfer limit
described above, and no transfer charge will be imposed on transfers from the
Fixed Account. Moreover, the maximum amount that can be transferred out of the
Fixed Account during any Policy Year will be determined by Companion, at its
sole discretion, but will not be less than 10% of the Fixed Account Value on the
date of the transfer.
The Policy is designed as a long-term investment, for retirement or other
financial planning. The Policy is not intended for active trading or "market
timing." Excessive transfers could harm other Policy Owners by having a
detrimental effect on portfolio management (which could occur, for example, if
it caused excessive commission expense or caused the manager to keep higher cash
reserves than otherwise). Therefore, Companion reserves the right to limit the
number of Transfers from the Subaccounts of the Variable Account and the Fixed
Account if Companion believes that: (a) excessive trading by the Policy Owner or
a specific Transfer request would have a detrimental effect on Accumulation Unit
values or the share prices of the Portfolios; or (b) Companion is informed by
one or more of the Series Funds or the Variable Account that the purchase or
redemption of shares is to be restricted because of excessive trading or a
Transfer or group of Transfers is deemed to have a detrimental effect on share
prices of one or more Portfolios or the Variable Account.
Where permitted by law, Companion may accept a Policy Owner's authorization
of third party reallocation on such Owner's behalf, subject to Companion's
rules. Companion may suspend or cancel such acceptance at any time. For example,
third party reallocation by "market timers" could be suspended if they cause
harm to other Policy Owners. Companion will notify the Policy Owner of any such
suspension or cancellation. Companion may restrict the availability of
Subaccounts and the Fixed Account for Transfers during any period in which the
Policy Owner authorizes such third party to act on his behalf. Companion will
give Owners prior notification of any such restrictions. However, Companion will
not enforce such restrictions if it is provided with satisfactory evidence that:
(a) such third party has been appointed by a court of competent jurisdiction to
act on the Policy Owner's behalf; or (b) such third party has been appointed by
the Policy Owner to act on his behalf for all his financial affairs.
Dollar Cost Averaging
Under the Dollar Cost Averaging program, the Policy Owner can instruct
Companion to automatically transfer, on a periodic basis, a predetermined amount
or percentage specified by the Policy Owner from any one Subaccount or the Fixed
Account to any Subaccount(s) of the Variable Account. The automatic transfers
can occur monthly, quarterly, semi-annually, or annually, and the amount
transferred each time must be at least $100 and must be $50 per Subaccount. At
the time the program begins, there must be at least $5,000 of Accumulation Value
in the applicable Subaccount or the Fixed Account. If transfers are made from
the Fixed Account, the maximum periodic transfer amount is 10% of that account's
value at the time of election, or a sufficient amount to provide transfers for
10 months. There is no maximum transfer amount requirement out of the
Subaccounts of the Variable Account.
Dollar Cost Averaging results in the purchase of more Accumulation Units when
the Accumulation Unit value is low, and fewer units when the Accumulation Unit
value is high. However, there is no guarantee that the Dollar Cost Averaging
program will result in higher Accumulation Value or otherwise be successful.
The Policy Owner can request participation in the Dollar Cost Averaging
program when purchasing the Policy or at a later date. Transfers will begin on
the first or 15th day (or, if not a Valuation Date, the next following Valuation
Date) of the month, as specified by the Owner, during which the request is
processed. The Owner can specify that only a certain number of transfers will be
made, in which case the program will terminate when that number of transfers has
been made. Otherwise, the program will terminate when the amount remaining in
the applicable Subaccount or, if applicable, the Fixed Account is less than
$500.
The Owner can increase or decrease the amount or percentage of the transfers
or discontinue the program by sending Written Notice to the Service Office or by
telephone, if telephone transactions are authorized. There is no charge for
participation in this program.
Asset Allocation Program
Under the Asset Allocation Program, the Policy Owner can instruct Companion
to allocate purchase payments and Accumulation Value among the Subaccounts of
the Variable Account and the Fixed Account in accordance with allocation
instructions specified by the Policy Owner or allocation instructions
recommended by Companion and approved by the Policy Owner. Companion will
rebalance a Policy Owner's investment by allocating purchase payments and
transferring Accumulation Value among the Subaccounts and the Fixed Account to
ensure conformity with current allocation instructions. Rebalancing will be
performed on a quarterly, semi-annual or annual basis as specified by the Policy
Owner. Transfers of Accumulation Value made pursuant this program will not be
counted in determining whether the Transfer Fee applies. At the time the program
begins, there must be at least $10,000 of Accumulation Value under the Policy.
The Policy Owner can request participation in the Asset Allocation Program
when purchasing the Policy or at a later date. The Owner can change his
allocation percentage or discontinue the program by sending Written Notice to
the Service Office. There is no charge for participation in this program.
THE POLICY
The Ultrannuity Series V Variable Annuity Policy is a Flexible Payment
Variable Deferred Annuity Policy. The rights and benefits under the Policy are
summarized below; however, the description of the Policy contained in this
Prospectus is qualified in its entirety by the Policy itself, a copy of which is
available upon request from Companion. The Policy may be purchased on a non-tax
qualified basis ("Nonqualified Policy") or in connection with retirement plans
or individual retirement accounts that qualify for favorable income tax
treatment ("Qualified Policy"). The Policy will remain in force until
surrendered for its Cash Surrender Value, or all Proceeds have been paid under a
Payout Option or as a death benefit or upon termination.
Policy Application and Issuance of Policies
Before it will issue a Policy, Companion must receive a completed Policy
application and a minimum initial Purchase Payment of $5,000. A Nonqualified
Policy ordinarily will be issued only in respect of Owners Age 0 through 83, and
a Qualified Policy ordinarily will be issued only in respect of Owners Age 0
through 70 1/2. Companion reserves the right to reject any application or
Purchase Payment.
Under Companion's Electronic Funds Transfer program, the Owner can select a
monthly payment schedule pursuant to which purchase payments will be
automatically deducted from a bank or credit union account or other sources. The
minimum size of an initial Purchase Payment must be at least $2,000. Each
subsequent monthly payment must be at least $100.
If the application can be accepted in the form received, the initial Purchase
Payment will be credited to the Accumulation Value within two business days
after the later of receipt of the application or receipt of the initial Purchase
Payment. If the initial Purchase Payment cannot be credited because the
application or other issuing requirements are incomplete, the applicant will be
contacted within five business days of receipt and given an explanation for the
delay, and the initial Purchase Payment will be returned at that time unless the
applicant consents to Companion's retaining the initial Purchase Payment and
crediting it as soon as the necessary requirements are completed.
The date on which the initial Purchase Payment is credited to the
Accumulation Value is the Date of Issue. The Date of Issue is the date used to
determine Policy Years and Policy anniversaries.
Purchase Payments
All initial Purchase Payment checks or drafts should be made payable to
Companion Life Insurance Company and sent to the Service Office. Additional
Purchase Payments should be sent to the Service Office. The death benefit will
not take effect until the check or draft for the Purchase Payment is honored.
Initial Purchase Payment. The minimum initial Purchase Payment that Companion
currently will accept under both a Nonqualified Policy and a Qualified Policy is
$5,000 except under the Electronic Funds Transfer Program where the minimum
initial Purchase Payment is $2,000. Companion reserves the right to increase or
decrease this amount. The initial Purchase Payment is the only Purchase Payment
required to be paid under a Policy.
Additional Purchase Payments. The Owner may pay additional Purchase Payments.
The minimum additional Purchase Payment under both a Nonqualified Policy and a
Qualified Policy is $500 except under the Electronic Funds Transfer Program
where the minimum additional Purchase Payment is $100. Additional Purchase
Payments will be credited to the Policy and added to the Accumulation Value as
of the Valuation Date when they are received at the Service Office. Companion
will not accept any additional Purchase Payments beginning on the Policy
Anniversary following the Owner's 83rd birthday.
Allocation of Purchase Payments. An Owner must allocate Purchase Payments to
one or more of the Eligible Investments. The Owner must specify the initial
allocation in the Policy application. This allocation will be used for
additional Purchase Payments unless the Owner requests a change of allocation.
All allocations must be made in whole percentages and must total 100%. The
minimum allocation amount is $500. If the Owner fails to specify how Purchase
Payments are to be allocated, the Purchase Payment(s) cannot be accepted. The
initial Purchase Payment will be allocated to the Owner's selected Subaccounts
on the Date of Issue. All additional Purchase Payments received after the end of
the free look period will be allocated and credited to the Owner's Policy as of
the Valuation Period during which they are received.
The Owner may change the allocation instructions for future additional
Purchase Payments by sending Written Notice, signed by the Owner, to Companion's
Service Office. The allocation change will apply to payments received on or
after the date the Written Notice is received.
Payment Not Honored by Bank. Any payment due under the Policy which is
derived, all or in part, from any amount paid to Companion by check or draft may
be postponed until such time as Companion determines that such instrument has
been honored. Payment by certified check, banker's draft, or cashier's check
will be promptly applied.
Accumulation Value
On the Date of Issue, the Accumulation Value equals the initial Purchase
Payment. On any Valuation Date thereafter, the Accumulation Value equals the sum
of the values in the Variable Account and the Fixed Account.
The Accumulation Value is expected to change from Valuation Period to
Valuation Period, reflecting the expenses and investment experience of the
selected Eligible Investments as well as the Variable Account deductions for
charges.
The Variable Account Value. The Accumulation Value for each Subaccount is
equal to:
(a) the current number of Accumulation Units in the Subaccount for the
Policy; multiplied by
(b) the current Accumulation Unit value.
A Purchase Payment or transfer allocated to a Subaccount is converted into
Accumulation Units by dividing it by the Accumulation Unit value for the
Valuation Period during which the Purchase Payment or transfer is allocated to
the Variable Account. The initial Accumulation Unit value for each Subaccount
was set at $10 when the Subaccount was established. The Accumulation Unit value
may increase or decrease from one Valuation Date to the next.
The Accumulation Unit value for a Subaccount on any Valuation Date is
calculated as follows:
(a) The net asset value per share of the Portfolio multiplied by
the number of shares held in the Subaccount, before the purchase
or redemption of any shares on that date; minus
(b) the cumulative unpaid charge for the Mortality and Expense Risk
Charge and Administrative Expense Charge; minus
(c) any applicable charge for federal and state income taxes, if any;
the result divided by
(d) the total number of Accumulation Units held in the Subaccount on
the Valuation Date, before the purchase or redemption of any
Accumulation Units on that day.
Positive investment experience of the applicable Portfolio will increase the
Accumulation Unit values and negative investment experience will decrease the
Unit values. Expenses and deductions will have a negative effect on Unit values.
The Fixed Account Value. The Accumulation Value of the Fixed Account on
any Valuation Date is equal to:
(a) the Accumulation Value at the end of the preceding Policy Month;
plus
(b) any Purchase Payments credited since the end of the previous
Policy Month; plus
(c) any transfers from the Subaccounts credited to the Fixed Account
since the end of the previous Policy Month; minus
(d) any transfers from the Fixed Account to the Subaccounts since the
end of the previous Policy Month; minus
(e) any partial withdrawal and Withdrawal Charge taken from the Fixed
Account since the end of the previous Policy Month; plus
(f) interest credited on the Fixed Account balance.
Companion guarantees that the Accumulation Value in the Fixed Account will be
credited with an effective annual interest rate of at least 3%.
Non-participating Policy
The Policy does not participate or share in the profits or surplus earnings
of Companion. No dividends are payable on the Policy.
Termination
If the Accumulation Value is less than $500, Companion may cancel the
Policy upon 60 days' notice to the Owner. This cancellation will be considered a
full surrender of the Policy. If the Accumulation Value in any Subaccount falls
below $500, Companion reserves the right to transfer the remaining balance,
without charge, to the Money Market Subaccount.
DISTRIBUTIONS UNDER THE POLICY
Withdrawals
The Owner may withdraw all or a portion of the Cash Surrender Value in
exchange for a cash payment from Companion. The Cash Surrender Value is the
Accumulation Value less any applicable Withdrawal Charge and any applicable
Policy Fee. (See "Charges and Deductions," p. 25).
The Owner may withdraw Cash Surrender Value from the Variable Account at
any time prior to the Annuity Starting Date, and after the Annuity Starting Date
if Payout Option 2 is elected as a variable annuity payout option, by sending a
Written Request to Companion's Service Office. The minimum amount that can be
withdrawn from any Eligible Investment is $500. After a partial withdrawal, the
remaining Accumulation Value must be at least $500. In the absence of written
instructions from the Owner, withdrawals will result in cancellation of
Accumulation Units from each applicable Subaccount and the deduction of
Accumulation Value from the Fixed Account in the ratio that the value of each
such Eligible Investment bears to the total Accumulation Value of the Policy
(i.e., pro rata from each Eligible Investment). No more than a pro-rata amount
may be withdrawn from the Fixed Account for any partial withdrawal. If the Owner
requests a surrender, the Policy must be returned to the Service Office.
Withdrawals from the Fixed Account may be delayed for up to six months.
Each Policy Year the Owner may withdraw up to 15% of Accumulation Value as
of the date of the first withdrawal that year without deduction of a Withdrawal
Charge. Amounts withdrawn in excess of this free withdrawal amount may be
subject to the Withdrawal Charge of up to 7%. For a discussion of the Withdrawal
Charge, see "Withdrawal Charge," p. 25.
Withdrawals may be taxable and subject to a penalty tax. (See "Certain
Federal Income Tax Consequences," p. 27.)
Since the Owner assumes the investment risk with respect to Purchase
Payments allocated to the Variable Account, and because surrenders and
withdrawals are subject to a Withdrawal Charge, and possibly a charge for
premium taxes, the total amount paid upon total surrender of the Policy (taking
any prior partial withdrawals into account) may be more or less than the total
Purchase Payments made. Following a surrender of the Policy, or at any time the
Accumulation Value is zero, all rights of the Owner will terminate.
Systematic Withdrawal Plan
Under the Systematic Withdrawal Plan, the Policy Owner can instruct
Companion to make automatic payments of a predetermined dollar amount or fixed
percentage of Accumulation Value to them monthly, quarterly, semi-annually or
annually from a specified Eligible Investment. The minimum systematic withdrawal
payment is $100. The "Request for Systematic Withdrawal" form must specify a
date for the first payment, which must be at least 30 but not more than 90 days
after the form is submitted. The Owner may specify the Eligible Investments from
which Systematic Withdrawals will be made, but no more than a pro-rata amount
can be withdrawn from the Fixed Account. If the Owner does not specify the
Eligible Investments from which Systematic Withdrawals are to be taken,
Systematic Withdrawals will be taken from each Eligible Investment in the
proportion that the Accumulation Value in each Eligible Investment bears to the
total Accumulation Value of the Policy.
The Withdrawal Charge will apply in accordance with its terms.
A qualified tax adviser should be consulted before a Systematic Withdrawal
Plan is requested since distributions under such a Plan may be taxable and
subject to a penalty tax. (See "Certain Federal Income Tax Consequences," p.
27.)
Annuity Payments
Payees receiving Annuity Payments under the Policy must be individuals who
receive payments in their own behalf unless otherwise agreed to by Companion.
Any Payout Option chosen will be effective when Companion acknowledges it.
Companion may require proof of the Owner's or the Annuitant's age or survival.
The level of Annuity Payments is determined by the Accumulation Value, the age
and sex of the Annuitant, and the Payout Option elected.
Annuity Starting Date. Unless the Annuity Starting Date is changed, Annuity
Payments under a Policy will begin on the Annuity Starting Date which is
selected by the Policy Owner at the time the Policy is applied for. The latest
Annuity Starting Date permitted is when the Annuitant attains age 90. An earlier
Annuity Starting Date is required for Qualified Contracts. The Annuity Starting
Date may be changed from time to time by the Policy Owner by Written Notice to
Companion, provided that notice of each change is received by Companion at its
Service Office at least thirty (30) days prior to the then current Annuity
Starting Date.
Election of Payout Option. The Policy Owner will choose a Payout Option,
under which the Policy Proceeds will be paid to the Payee(s), in the Policy
application. However, during the lifetime of the Owner and prior to the Annuity
Starting Date, the Policy Owner may change the election, but Written Notice of
any election or change of election must be received by Companion at its Service
Office at least thirty (30) days prior to the Annuity Starting Date. If no
election is made prior to the Annuity Starting Date, Annuity Payments will be
made under Option 4 providing lifetime income with guaranteed payments for 10
years. Companion reserves the right to pay the Proceeds in one sum when the
Proceeds are less than $2,000, or when the Payout Option chosen would result in
periodic payments of less than $20.
If the Owner dies prior to the Annuity Starting Date (and the Policy is in
force), the Beneficiary may elect to receive the death benefit under one of the
Payout Options, to the extent allowed by law and subject to the terms of any
settlement agreement. (See "Death Benefit," p. 24.)
The longer the guaranteed or projected Payout Option period, the lower the
amount of each payment.
Unless the Policy Owner specifies otherwise, the Payee shall be the
Annuitant.
Fixed Annuity Payments. Fixed annuity payments are available under all six
Payout Options below. Under each fixed Payout Option the amount of each payment
will be set on the Annuity Starting Date and will not change. Annuity Payments
will begin on that date. The Accumulation Value reduced by any Withdrawal Charge
will be transferred to the general account of Companion, and the Annuity
Payments will be fixed in amount by the fixed annuity provisions selected and
the age and sex (if consideration of sex is allowed) of the Annuitant. The
guaranteed effective annual interest rate used in the Payout Options is 3%.
Using a procedure approved by its Board of Directors, Companion may, at its sole
discretion, declare additional interest to be paid or credited annually for
Payout Options 1, 2, 3, or 6. Current immediate annuity rates for the same class
of annuities will be used if higher than the guaranteed amounts (guaranteed
amounts are based upon the tables contained in the Policy). The guaranteed
amounts are based on the 1983 Table "a" mortality table, and 3.0% guaranteed
interest rate. Current amounts may be obtained from Companion. For further
information, contact Companion at its Service Office.
Variable Annuity Payments. Only Payout Options 2, 4, and 6 are available
for variable annuity payments. The dollar amount of the first monthly annuity
payment will be determined by applying the Accumulation Value reduced by any
Withdrawal Charge allocated to variable annuity payments to the annuity table
applicable to the Payout Option chosen. The tables are determined from the 1983
Table "a" mortality table with an assumed investment rate of 4%. If more than
one subaccount has been selected, the Accumulation Value reduced by any
Withdrawal Charge of each subaccount is applied separately to the annuity table
to determine the amount of the first annuity payment attributable to that
particular subaccount.
All variable annuity payments other than the first will vary in
amount according to the investment performance of the applicable subaccounts.
The amount of each subsequent payment is the sum of: the number of Variable
Annuity Units for each subaccount as determined for the first annuity payment
multiplied by the value of a Variable Annuity Unit for that subaccount 10 days
prior to the date the variable annuity payment is due. This amount may increase
or decrease from month to month.
If the net investment return of a subaccount for a payment period
is equal to the pro-rated portion of the 4% annual assumed investment rate, the
variable annuity payment attributable to that subaccount for that period will
equal the payment for the prior period. To the extent that such net investment
return exceeds an annualized rate of 4% for a payment period, the payment for
that period will be greater than the payment for the prior period and to the
extent that such return for a period falls short of an annualized rate of 4%,
the payment for that period will be less than the payment for the prior period.
Transfers between fixed and variable subaccounts. After the Annuity
Commencement Date the annuitant may exchange the value of a designated number of
Variable Annuity Units of a particular subaccount into other Variable Annuity
Units, the value of which would be such that the dollar amount of an annuity
payment made on the date of the exchange would be unaffected by the fact of the
exchange. No more than four (4) exchanges may be made within each account year.
Transfers may be made between subaccounts and from a subaccount to the
fixed account. No exchanges may be made from the fixed account to the variable
subaccounts. Transfers will be made using the Variable Annuity Unit values for
the Valuation Period during which any request is received by Companion.
Payout Options. The Policy provides six Payout Options which are described
below.
The guaranteed effective annual interest rate used in the Payout Options
is 3%. Using a procedure approved by its Board of Directors, Companion
may, at its sole discretion, declare additional interest to be paid or
credited annually for Payout Options 1, 2, 3, or 6.
Under each Payout Option the amount of each payment will be set on the
Annuity Starting Date and will not change. Annuity Payments will begin on that
date. The Accumulation Value will be transferred to the general account of
Companion, and the Annuity Payments will be fixed in amount by the fixed annuity
provisions selected and the age and sex (if consideration of sex is allowed) of
the Annuitant. For further information, contact Companion at its Service Office.
There are six Payout Options. All Payout Options or earnings thereon
are available for fixed annuity payments. Only Payout Options 2, 4 and 6 are
available for variable annuity payments.
Option 1 -- Proceeds Held on Deposit at Interest. While the Proceeds
are held by Companion, Companion will annually:
(a) pay interest to the Payee; or
(b) add interest to the Proceeds.
Option 2 -- Income of a Specified Amount. The Proceeds will be paid in
monthly installments of a specified amount over at least a five year period
until the Proceeds, with interest or earnings thereon, have been fully paid.
Option 3 -- Income for a Specified Period. The Proceeds will be paid in
installments for the number of years chosen. The monthly incomes for each $1,000
of Proceeds, shown in the table set forth in the Policy, include interest.
Companion will provide the income amounts for payments other than monthly upon
request.
Option 4 -- Lifetime Income. The Proceeds will be paid as monthly
income for as long as the Annuitant lives. The following guarantees are
available:
Guaranteed Period - The monthly income will be paid for a minimum of
10 years and as long thereafter as the Annuitant lives; or
Guaranteed Amount - The monthly income will be paid until the sum of
all payments equals the Proceeds placed under this option and as
long thereafter as the Annuitant lives.
If a fixed annuity Payment Option is chosen, the monthly income will be the
amount computed using either the Lifetime Monthly Income Table set forth in the
Policy (which is based on the 1983 Table "a" mortality table and interest at 3%,
adjusted to age last birthday) or, if more favorable to the Annuitant,
Companion's then current lifetime monthly income rates for payment of Proceeds.
If a variable Payout Option is chosen, all variable annuity payments, other than
the first variable annuity payment, will vary in amount according to the
investment performance of the applicable Subaccounts (see "Variable Annuity
Payments," p. 24).
Note Carefully: If no guarantee is elected, then IT WOULD BE POSSIBLE FOR
ONLY ONE ANNUITY PAYMENT TO BE MADE if the Annuitant(s) were to die before the
due date of the second annuity payment; only two Annuity Payments if the
Annuitant(s) were to die before the due date of the third annuity payment; and
so forth.
When the Annuitant dies, any remaining guaranteed Annuity Payments will be
paid to the Beneficiary. When the last Payee dies, Companion will pay to the
estate of that Payee any remaining guaranteed Annuity Payments.
Option 5 -- Lump Sum. The Proceeds will be paid in one sum.
Option 6 -- Alternative Schedule. Upon request and if available,
Companion will provide payments for other options, including joint and survivor
periods. Certain options may not be available in some states.
Additional information about any Payout Option may be obtained by
contacting the Service Office.
* * *
A portion or the entire amount of the Annuity Payments may be taxable as
ordinary income. If, at the time the Annuity Payments begin, the Policy Owner
has not provided Companion with a written election not to have federal income
taxes withheld, Companion must by law withhold such taxes from the taxable
portion of such annuity payments and remit that amount to the federal
government. Withholding is mandatory for certain Qualified Policies. (See
"Certain Federal Income Tax Consequences," p. 28.)
Death Benefit
Death of Owner Prior to Annuity Starting Date. If any Owner or joint Owner
dies prior to the Annuity Starting Date (and the Policy is in force), the Policy
will terminate, and a death benefit will be paid to the Beneficiary. The death
benefit will equal the largest of (i) the Accumulation Value (without deduction
of the Withdrawal Charge), on the later of the date on which Due Proof of Death
or an election of Payout Option is received by Companion's Service Office; or
(ii) the sum of Purchase Payments, less partial withdrawals.
The death benefit is payable upon receipt of Due Proof of Death of the
first Owner to die, election of a Payout Option, and proof that such Owner died
prior to the commencement of Annuity Payments. The death benefit generally will
be paid within seven days, or as soon thereafter as Companion has sufficient
information about the Beneficiary to make the payment. The Beneficiary may
receive the amount payable in a lump sum cash benefit, or, subject to any
limitation under any state or federal law, rule, or regulation, under one of the
Payout Options described above, unless a settlement agreement is effective at
the death of the Owner that prevents such election. The Beneficiary must make
such election within sixty days of the date Companion receives Due Proof of
Death; otherwise a lump sum payment will be made.
If an Owner of the Policy is a corporation or other nonindividual, the
primary Annuitant will be treated as an Owner of the Policy for purposes of the
death benefit. The "primary Annuitant" is that individual whose life affects the
timing or the amount of the payout under the Policy. A change in the primary
Annuitant will be treated as the death of an Owner.
If the Annuitant is an Owner or joint Owner, the death of the Annuitant
will be treated as the death of an Owner rather than of the Annuitant.
(If the Annuitant is not an Owner and the Annuitant dies before the Annuity
Starting Date, the Owner may name a new Annuitant if such Owner(s) is not a
corporation or other non-individual. If the Owner does not name a new Annuitant,
the Owner will become the Annuitant.)
Death of Owner On or After Annuity Starting Date. If any Owner or joint
Owner dies on or after the Annuity Starting Date and before all the Proceeds
have been paid, any remaining Proceeds will be paid at least as rapidly as under
the Payout Option in effect at the time of the death.
Beneficiary. The Owner may change the named Beneficiary by sending Written
Notice to the Service Office unless the named Beneficiary is irrevocable. When
recorded and acknowledged by Companion, the change will be effective as of the
date the Owner signed the request. The change will not apply to any payments
made or other action taken by Companion before recording. If the named
Beneficiary is irrevocable, the Owner may change the named Beneficiary only by
joint written request from the Owner and the Beneficiary. If more than one named
Beneficiary is designated, and the Policy Owner fails to specify their
interests, they will share equally.
If there are joint Owners, the surviving joint Owner will be deemed the
Beneficiary, and the Beneficiary named in the Policy application or as
subsequently changed will be deemed the contingent Beneficiary. If both joint
Owners die simultaneously, the death benefit will be paid to the contingent
Beneficiary.
If the Beneficiary is the deceased Owner's surviving spouse, the spouse may
elect either to receive the death benefit, in which case the Policy will
terminate, or to continue the Policy in force with the spouse as Owner.
If the named Beneficiary does not survive the Owner, then the estate of the
Owner is the Beneficiary.
IRS Required Distribution
Federal tax law requires that if a Policy Owner of a nonqualified Policy
dies before the Annuity Starting Date, then the entire value of the Policy must
generally be distributed within five years of the date of death of such Policy
Owner. Therefore, generally, any death benefit must be paid within five years
after the date of death. The five-year rule does not apply to that portion of
the Proceeds which (a) is payable to or for the benefit of an individual
Beneficiary; and (b) will be paid over the lifetime or the life expectancy of
that Beneficiary as long as payments begin not later than one year after the
date of the Owner's death. Special rules may apply to the spouse of the deceased
Owner. See "Federal Tax Matters" in the Statement of Additional Information for
a detailed description of these rules. Other required distribution rules apply
to Qualified Contracts. (See "Certain Federal Income Tax Consequences," p. 27.)
The Policy contains provisions designed to comply with these requirements.
CHARGES AND DEDUCTIONS
Companion will make certain charges and deductions in connection with the
Policy in order to compensate it for incurring expenses in distributing the
Policy, bearing mortality and expense risks under the Policy, and administering
the Accounts and the Policies. Charges may also be made for federal, state or
local taxes (or the economic burden thereof), or for certain transfers.
Charges and expenses are also deducted from each Portfolio.
Withdrawal Charge
Companion will incur expenses relating to the sale of Policies, including
commissions to registered representatives and other promotional expenses.
Companion will apply a Withdrawal Charge, expressed as a percentage of any
Purchase Payment surrendered or withdrawn, in connection with a full surrender
or partial withdrawal, in order to partially cover distribution expenses. The
Withdrawal Charge Percentage will vary depending upon the number of years that
have elapsed since the date the Purchase Payment was made. The amount of the
Withdrawal Charge is determined by multiplying the amount of each Purchase
Payment withdrawn by the applicable Withdrawal Charge Percentages. For purposes
of determining the Withdrawal Charge, the oldest Purchase Payment is considered
to be withdrawn first; the next oldest Purchase Payment is considered to be
withdrawn next, and so on (this is a "first-in, first-out" procedure), and all
Purchase Payments are deemed to be withdrawn before any earnings. The amount of
the partial withdrawal requested plus any Withdrawal Charge will be deducted
from the Accumulation Value on the date an Owner's Written Request is received
at the Service Office. In the absence of other instructions, partial withdrawals
(including any charge) will be deducted from the Subaccounts and the Fixed
Account on a pro-rata basis. No more than a pro-rata amount can be withdrawn
from the Fixed Account. The following is the table of Withdrawal Charge
Percentages:
========================================== --- ---- ---- ---- ---- ---- ---- ===
Years Since Receipt of Purchase Payment 1 2 3 4 5 6 7 8+
========================================== === ==== ==== ==== ==== ==== ==== ===
Applicable Withdrawal Charge Percentage 7% 6% 5% 4% 3% 2% 1% 0%
========================================== === ==== ==== ==== ==== ==== ==== ===
Companion anticipates that the Withdrawal Charge will not generate
sufficient funds to pay the cost of distributing the Policies. If this charge is
insufficient to cover the distribution expenses, the deficiency will be met from
Companion's general funds, which will include amounts derived from the charge
for mortality and expense risks (described below).
Each Policy year, the Owner can withdraw up to 15% of Accumulation Value,
without imposition of the Withdrawal Charge. A Withdrawal Charge will also not
be applied on the Annuity Starting Date if the Accumulation Value is applied
after the second Policy Anniversary to provide lifetime Annuity Payments under
Payout Option 4. (The Withdrawal Charge will apply to Proceeds placed under
Payout Options 1, 2, 3, 5, and 6.) No Withdrawal Charge will be imposed as a
result of any death benefit payment or, under Qualified Plans, any refund of
contributions paid in excess of the Owner's deductible amounts. Companion will
not increase the withdrawal charge.
Mortality and Expense Risk Charge
Companion imposes a daily charge as compensation for bearing certain
mortality and expense risks in connection with the Policies. This charge is
equal to an annual rate of 1.00% (.0027535% daily) of the value of the net
assets in the Variable Account and it will not increase. The Mortality and
Expense Risk Charge is reflected in the accumulation unit values for each
Subaccount.
Accumulation Values and Annuity Payments are not affected by changes in
actual mortality experience or by actual expenses incurred by Companion. The
mortality risks assumed by Companion arise from its contractual obligations to
make Annuity Payments (determined in accordance with the Annuity tables and
other provisions contained in the Policy) and to pay death benefits prior to the
Annuity Starting Date. Thus, Owners are assured that neither an Annuitant's own
longevity nor an unanticipated improvement in general life expectancy will
adversely affect the periodic Annuity Payments that the Payee will receive under
the Policy.
The expense risk assumed by Companion is the risk that Companion's actual
expenses in administering the Policy will exceed the amount recovered through
the Administrative Charges.
If the Mortality and Expense Risk Charge is insufficient to cover
Companion's actual costs, Companion will bear the loss; conversely, if the
charge is more than sufficient to cover costs, the excess will be profit to
Companion. Companion expects a profit from this charge. To the extent that the
proceeds of the Withdrawal Charge are insufficient to cover the actual cost of
Policy distribution, the deficiency will be met from Companion's general
corporate assets, which may include amounts, if any, derived from the Mortality
and Expense Risk Charge.
Administrative Charges
In order to cover the costs of administering the Policies, Companion
deducts an annual Policy Fee from the Accumulation Value of the Variable Account
and also deducts a daily Administrative Expense Charge from the assets of each
Subaccount.
The annual Policy Fee is deducted from the Accumulation Value of the
Variable Account of each Policy on the last Valuation Date of each Policy Year
prior to the Annuity Starting Date (and upon a complete surrender). This annual
Policy Fee is $30, and it will not be increased. The annual Policy Fee will be
deducted from each Subaccount in the same proportion that the Variable Account
Subaccount Accumulation Value in each such Eligible Investment bears to the
total Variable Account Accumulation Value of the Policy. The portion of the
annual Policy Fee deducted from the Variable Account Subaccounts will be
deducted by canceling Accumulation Units. This fee is waived if the Accumulation
Value exceeds $50,000 on the last Valuation Date of the applicable Policy Year
and if the Variable Account Accumulation Value is insufficient to pay the Policy
Fee. The fee is also waived for sales of the Policy to employees of Companion
Life or its affiliates.
Companion also deducts a daily Administrative Expense Charge from the
assets of each Subaccount of the Variable Account. This charge is equal to an
annual rate of .20% (.0005485% daily) of the net assets of each Subaccount of
the Variable Account. The Administrative Expense Charge will not be increased in
the future.
Transfer Fee
There is no charge for transfers from the Fixed Account or for the first 12
transfers from Subaccounts of the Variable Account in each Policy Year. However,
there is a $10 fee for the thirteenth and each subsequent request made by the
Owner to transfer Accumulation Value from a Subaccount during a single Policy
Year. Any applicable Transfer Fee is deducted from the amount transferred. All
transfer requests made simultaneously will be treated as a single request. No
transfer fee will be imposed for any transfer which is not at the Owner's
request. The Transfer Fee will not increase.
Federal, State and Local Taxes
No charges are currently made for federal, state, or local taxes. However,
Companion reserves the right to deduct amounts from the Subaccounts for such
taxes or any other economic burden resulting from imposition of the tax laws
that Companion determines to be properly attributable to the Variable Account in
the future.
Other Expenses Including Investment Advisory Fees
Each Portfolio of the Series Funds is responsible for all of its expenses.
The net assets of each Portfolio of the Series Funds will reflect deductions in
connection with the investment advisory fee and other expenses.
For more information concerning the investment advisory fee and other
charges against the Portfolios, see the prospectuses for the Series Funds,
current copies of which accompany this Prospectus.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
THE FOLLOWING DISCUSSION IS A GENERAL DESCRIPTION OF FEDERAL TAX
CONSIDERATIONS RELATING TO THE POLICY AND IS NOT INTENDED AS TAX ADVICE. THIS
DISCUSSION IS NOT INTENDED TO ADDRESS THE TAX CONSEQUENCES RESULTING FROM ALL OF
THE SITUATIONS IN WHICH A PERSON MAY BE ENTITLED TO OR MAY RECEIVE A
DISTRIBUTION UNDER THE POLICY. ANY PERSON CONCERNED ABOUT THESE TAX IMPLICATIONS
SHOULD CONSULT A COMPETENT TAX ADVISOR BEFORE INITIATING ANY TRANSACTION. THIS
DISCUSSION IS BASED UPON COMPANION'S UNDERSTANDING OF THE PRESENT FEDERAL INCOME
TAX LAWS AS THEY ARE CURRENTLY INTERPRETED BY THE INTERNAL REVENUE SERVICE. NO
REPRESENTATION IS MADE AS TO THE LIKELIHOOD OF THE CONTINUATION OF THE PRESENT
FEDERAL INCOME TAX LAWS OR OF THE CURRENT INTERPRETATION BY THE INTERNAL REVENUE
SERVICE. MOREOVER, THIS SUMMARY DISCUSSES ONLY CERTAIN FEDERAL INCOME TAX
CONSEQUENCES TO "UNITED STATES PERSONS," AND NO ATTEMPT HAS BEEN MADE TO
CONSIDER ANY APPLICABLE STATE OR OTHER TAX LAWS. UNITED STATES PERSONS MEANS
CITIZENS OR RESIDENTS OF THE UNITED STATES, DOMESTIC CORPORATIONS, DOMESTIC
PARTNERSHIPS AND TRUSTS OR ESTATES THAT ARE SUBJECT TO UNITED STATES FEDERAL
INCOME TAX REGARDLESS OF THE SOURCE OF THEIR INCOME.
The Policy may be purchased on a non-tax qualified basis ("Nonqualified
Policy") or purchased and used in connection with plans qualifying for favorable
tax treatment ("Qualified Policy"). Qualified Policies are designed for use by
individuals whose Purchase Payments are comprised solely of proceeds from and/or
contributions under retirement plans which are intended to qualify as plans
entitled to special income tax treatment under Sections 401(a), 403(b), 408, or
457 of the Internal Revenue Code of 1986, as amended (the "Code"). The ultimate
effect of Federal income taxes on the amounts held under a Policy, on Annuity
Payments, and on the economic benefit to the Policy Owner, the Annuitant, or the
Beneficiary depends, among other things, on the type of retirement plan, on the
tax and employment status of the individual concerned and on the employer's tax
status. In addition, certain requirements must be satisfied in purchasing a
Qualified Policy with proceeds from a tax qualified plan and receiving
distributions from a Qualified Policy in order to continue receiving favorable
tax treatment. Therefore, purchasers of Qualified Policies should seek competent
legal and tax advice regarding the suitability of the Policy for their
situation, the applicable requirements, and the tax treatment of the rights and
benefits of the Policy. The following discussion assumes that a Qualified Policy
is purchased with proceeds from and/or contributions under retirement plans that
qualify for the intended special Federal income tax treatment.
Tax Status of the Policy
The following discussion is based on the assumption that the Policy
qualifies as an annuity contract for federal income tax purposes. The Statement
of Additional Information discusses the requirements for qualifying as an
annuity.
Taxation of Annuities
In General. Section 72 of the Code governs taxation of annuities in
general. Companion believes that the Policy Owner who is a natural person
generally is not taxed on increases (if any) in the value of a Policy until
distribution occurs by withdrawing all or part of the Accumulation Value (e.g.,
partial withdrawals, full surrenders or Annuity Payments under the Payout Option
elected). For this purpose, the assignment, pledge, or agreement to assign or
pledge any portion of the Accumulation Value (and in the case of a Qualified
Policy, any portion of an interest in the qualified plan) generally will be
treated as a distribution. The taxable portion of a distribution (in the form of
a single sum payment or an annuity) is taxable as ordinary income.
The owner of any annuity contract who is not a natural person generally
must include in income any increase in the excess of the Policy's Accumulation
Value over the "investment in the contract" (discussed below) during the taxable
year. There are some exceptions to this rule, and a prospective Policy Owner
that is not a natural person may wish to discuss these with a competent tax
adviser.
The following discussion generally applies to a Policy owned by a natural
person.
Surrenders and Partial Withdrawals. In the case of a surrender or partial
withdrawal (including systematic withdrawals) under a Qualified Policy, under
Section 72(e) of the Code a ratable portion of the amount received is taxable,
generally based on the ratio of the "investment in the contract" to the
individual's total accrued benefit for balance under the retirement plan. The
"investment in the contract" generally equals the amount of any purchase
payments paid by or on behalf of any individual. For a Policy issued in
connection with qualified plans, the "investment in the contract" can be zero.
Special tax rules may be available for certain distributions from a Qualified
Policy.
With respect to Nonqualified Policies, partial withdrawals (including
systematic withdrawals) are generally treated as taxable income to the extent
that the Accumulation Value immediately before the partial withdrawal exceeds
the "investment in the contract" at that time.
Full surrenders are treated as taxable income to the extent that the amount
received exceeds the "investment in the contract."
Annuity Payments. Although tax consequences may vary depending on the
Payout Option elected under the Policy, in general, only the portion of the
payout that represents the amount by which the Accumulation Value exceeds the
"investment in the contract" will be taxed; after the "investment in the
contract" is recovered, the full amount of any additional payments is taxable.
For Variable Annuity Payments, the taxable portion is generally determined by an
equation that establishes a specific dollar amount of each payment that is not
taxed. The dollar amount is determined by dividing the "investment in the
contract" by the total number of expected periodic payments. However, the entire
distribution will be taxable once the recipient has recovered the dollar amount
of his or her "investment in the contract." For Fixed Annuity Payments, in
general there is no tax on the portion of each Annuity Payment which represents
the same ratio that the "investment in the contract" bears to the total expected
value of the Annuity Payments for the term of the payments; however, the
remainder of each Annuity Payment is taxable. Once the "investment in the
contract" has been fully recovered, the full amount of any additional Annuity
Payments is taxable. If Annuity Payments cease by reason of the death of the
Annuitant, the excess (if any) of the "investment in the contract" as of the
Annuity Starting Date over the aggregate amount of Annuity Payments received on
or after the Annuity Starting Date that was excluded from gross income is
allowable as a deduction for the last taxable year of the Annuitant.
Penalty Tax. In the case of a distribution pursuant to a Nonqualified
Policy, there may be imposed a Federal penalty tax equal to 10% of the amount
treated as taxable income. In general, however, there is no penalty tax on
distributions: (a) made on or after the date on which the Policy Owner attains
age 59 1/2; (b) made as a result of death or disability of a Policy Owner; (c)
received in substantially equal periodic payments as a life annuity or a joint
and survivor annuity for the lives or life expectancies of the Policy Owner and
a "designated beneficiary"; (d) from a qualified plan; (e) allocable to
investment in the Policy before August 14, 1982; (f) under a qualified funding
asset (as defined in Code section 130(d)); (g) under an immediate annuity (as
defined in Code Section 72(u)(4)); or (h) which are purchased by an employer on
termination of certain types of qualified plans and which are held by the
employer until the employee separates from service. Other tax penalties may
apply to certain distributions under a Qualified Policy.
Death Benefit Proceeds. Amounts may be distributed from the Account because
of the death of a Policy Owner. Generally, such amounts are includible in the
income of the recipient as follows: (1) if distributed in a lump sum, they are
taxed in the same manner as a full surrender as described above; or (2) if
distributed under an Annuity Payout Option, they are taxed in the same manner as
Annuity Payments, as described above.
Transfers, Assignments, or Exchanges of the Policy. A transfer of ownership
of a Policy, the designation of an Annuitant or Beneficiary who is not also the
Policy Owner, the selection of certain annuity starting dates, or the exchange
of a Policy may result in certain tax consequences to the Policy Owner that are
not discussed herein. Policy Owners contemplating any such transfer, assignment,
or exchange of a Policy should contact a competent tax adviser with respect to
the potential tax effects of such a transaction.
Multiple Policies. All nonqualified deferred annuity contracts that are
issued by Companion (or its affiliates) to the same Policy Owner during any
calendar year are treated as one annuity contract for purposes of determining
the amount includible in gross income under section 72(e) of the Code. In
addition, the Treasury Department has specific authority to issue regulations
that prevent the avoidance of section 72(e) through the serial purchase of
annuity contracts or otherwise. Congress has also indicated that the Treasury
Department may have authority to treat the combination purchase of an immediate
annuity contract and separate deferred annuity contract as a single annuity
contract under its general authority to prescribe rules as may be necessary to
enforce the income tax laws. Any Policy Owner or prospective Policy Owner
contemplating the purchase of more than one annuity in a calendar year should
consult a tax advisor.
Withholding. Pension and annuity distributions generally are subject to
withholding for the recipient's federal income tax liability at rates that vary
according to the type of distribution and the recipient's tax status.
Recipients, however, generally are provided the opportunity to elect not to have
tax withheld from distributions. Effective January 1, 1994, distributions from
certain qualified plans are generally subject to mandatory withholding. Certain
states also require withholding of state income taxes whenever federal income
taxes are withheld.
Possible Changes in Taxation. In past years, legislation has been proposed
that would have adversely modified the federal taxation of certain annuities.
For example, one such proposal would have changed the tax treatment of
nonqualified annuities that did not have "substantial life contingencies" by
taxing income as it is credited to the annuity. Although as of the date of this
prospectus Congress is not actively considering any legislation regarding the
taxation of annuities, there is always the possibility that the tax treatment of
annuities could change by legislation or other means (such as IRS regulations,
revenue rulings, judicial decisions, etc.). Moreover, it is also possible that
any change could be retroactive (that is, effective prior to the date of the
change).
Other Tax Consequences. As noted above, the foregoing discussion of the
Federal income tax consequences under the Policy is not exhaustive and special
rules are provided with respect to other tax situations not discussed in this
Prospectus. Further, the Federal income tax consequences discussed herein
reflect Companion's understanding of current law and the law may change. Federal
estate and state and local estate, inheritance, and other tax consequences of
ownership or receipt of distributions under the Policy depend on the individual
circumstances of each Policy Owner or recipient of the distribution. A competent
tax adviser should be consulted for further information.
Qualified Plans
The Policy may be used with certain qualified plans as described in the
following paragraphs. The tax rules applicable to Policy Owners in qualified
plans, including restrictions on contributions and benefits, taxation of
distributions and any tax penalties, vary according to the type of plan and the
terms and condition of the plan itself. Various tax penalties may apply to
contributions in excess of specified limits, aggregate distributions in excess
of $155,000 annually, distribution that do not satisfy specified requirements
and certain other transactions with respect to qualified plans. Therefore, no
attempt is made to provide more than general information about the use of the
Policy with qualified plans. Policy Owners, Annuitants and Beneficiaries are
cautioned that the rights of any person to any benefits under qualified plans
may be subject to the terms and conditions of the plans themselves, regardless
of the provisions of the Policy. Some retirement plans are subject to
distribution and other requirements that are not incorporated in Companion Life
Insurance Company's Policy provisions or administration procedures. Policy
Owners, participants and beneficiaries are responsible for determining that
contributions, distributions and other transactions with respect to the Policy
comply with applicable law. Following are brief descriptions of the
circumstances in which Companion Life Insurance Company will issue the Policy in
connection with qualified plans. When issued in connection with a qualified
plan, the Policy will be amended to conform with certain requirements of the
Code, and this amendment must be approved by the applicable State Insurance
Department before the Policy is available for use with a qualified plan. The
Policy may not be available in all States for all types of qualified plans.
Qualified Pension or Profit Sharing Plans. Section 401(a) of the Code
permits employers to establish retirement plans for employees and also permits
self-employed individuals to establish retirement plans for themselves and their
employees. Subject to the Policy's purchase payment limits, the Policy may be
issued to the trustee of such plan if the trustee is the Owner and Beneficiary
of the Policy, if the trustee or the employer selects the Policy as a plan
investment, and if the trustee arranges for plan services from a party other
than Companion Life Insurance Company (unless an officer of Companion Life
Insurance Company agrees in writing to perform services before the Policy is
issued). Purchasers of a Policy for use with such plans should seek competent
advice regarding the suitability of the Policy to their specific needs. The
Policy may not be assigned except to a successor plan trustee.
Individual Retirement Annuities. Section 408 of the Code permits eligible
individuals to contribute to an individual retirement program known as an
Individual Retirement Annuity (each hereinafter referred to as "IRA"). Also,
distributions from certain other types of qualified plans may be "rolled over"
on a tax-deferred basis into an IRA. Subject to the Policy's purchase payment
limits, the Policy may be issued as an IRA. Purchasers of a Policy for use with
IRAs will be provided with supplemental information required by the Internal
Revenue Service. Such purchasers will have the right to revoke their purchase
within seven days of the earlier of the establishment of the IRA or their
purchase. Purchasers should seek competent advice as to the suitability of the
Policy to their specific needs. An IRA cannot be assigned. Subject to the
Policy's purchase payment limits, the Policy (with unisex settlement option
rates) may be issued as an IRA in connection with a simplified employee pension
under Section 408(k) of the Code, but Companion is not responsible for providing
a plan document or administrative services for the simplified employee pension.
Tax-Sheltered Annuities. Section 403(b) of the Code permits public school
employees and employees of certain types of religious, charitable, educational,
and scientific organizations specified in Section 501(c)(3) of the Code to
direct the purchase of annuity contracts and, subject to certain limitations,
exclude the amount of purchase payments from gross income for tax purposes.
These annuity contracts are commonly referred to as "Tax-Sheltered Annuities."
Subject to the Policy's purchase payment limits, the Policy may be issued as a
Tax-Sheltered Annuity if each purchase payment is a direct transfer or rollover
from another Tax-Sheltered Annuity that is either offered through a government
employer such as a public school or funded only with salary reduction
contributions. Unlike some other Tax-Sheltered Annuities, the Policy does not
accept salary reduction contributions directly from an employer's payroll office
and it does not offer loans or hardship withdrawals. Except in the case of a
direct transfer to another Tax-Sheltered Annuity, withdrawals under the Policy
are prohibited unless made after the Policy Owner attains age 59 1/2, upon the
Policy Owner's separation from service or upon the Policy Owner's death or
disability. Purchasers should seek competent advice as to the suitability of the
Policy for their specific needs.
SIMPLE RETIREMENT ACCOUNTS
Beginning January 1, 1997, certain small employers may establish Simple
Retirement Accounts as provided by Section 408(p) of the Code, under which
employees may elect to defer up to $6,000 (as increased for cost of living
adjustments) as a percentage of compensation. The sponsoring employer is
required to make a matching contribution on behalf of contributing employees.
Distributions from a Simple Retirement Account are subject to the same
restrictions that apply to IRA distributions and are taxed as ordinary income.
Subject to certain exceptions, premature distributions prior to age 59 1/2 are
subject to a 10% penalty tax, which is increased to 25% if the distribution
occurs within the first two years after the commencement of the employee's
participation in the plan. The failure of the Simple Retirement Account to meet
Code requirements may result in adverse tax consequences.
DISTRIBUTIONS FROM QUALIFIED PLANS
For qualified plans under Section 401 (a), 401(k), 403(a), and 403(b), the Code
requires that distributions generally must commence no later than the later of
April 1 of the calendar year following the calendar year in which the owner (or
plan participant) (i) attains age 70 1/2 or (ii) retires, and must by made in a
specified form or manner. If the plan participant is a "5 percent owner "( as
defined in the Code), distributions generally must begin no later than the date
described in (i).
DISTRIBUTOR OF THE POLICIES
Mutual of Omaha Investor Services ("MOIS"), Mutual of Omaha Plaza, Omaha
Nebraska 68175, is the principal underwriter of the Policies. MOIS is a 100%
owned subsidiary of Mutual of Omaha Insurance Company, which is the ultimate
parent company of Registrant, Companion Life Insurance Company. MOIS has entered
or will enter into one or more contracts with various broker-dealers for the
distribution of the Policies. MOIS is registered with the Securities and
Exchange Commission as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc. Commission paid to a broker-dealer will
be up to 7% of Purchase Payments.
VOTING RIGHTS
To the extent required by law, Companion will vote Series Fund shares held
by the Variable Account at regular and special shareholder meetings of the
Series Funds in accordance with instructions received from persons having voting
interests in the portfolios. If, however, the 1940 Act or any regulation
thereunder should be amended or if the present interpretation thereof should be
amended or if the present interpretation thereof should change, and as a result
Companion determines that it is permitted to vote Series Fund shares in its own
right, it may elect to do so. The Series Funds may not hold routine annual
Shareholder meetings.
The Policy Owner holds the voting interest in the selected Portfolios. The
number of votes that an Owner has the right to instruct will be calculated
separately for each Subaccount. The number of votes that an Owner has the right
to instruct for a particular Subaccount will be determined by dividing his or
her Accumulation Value in the Subaccount by the net asset value per share of the
corresponding Portfolio in which the Subaccount invests. Fractional shares will
be counted. Each Owner having a voting interest in a Subaccount will receive
proxy material, reports, and other materials relating to the appropriate
Portfolio.
LEGAL PROCEEDINGS
There are no legal proceedings to which the Variable Account is a party or
to which the assets of the Variable Account are subject. Companion is not
involved in any litigation that is of material importance in relation to its
total assets or that relates to the Variable Account.
STATEMENT OF ADDITIONAL INFORMATION
A Statement of Additional Information is available (at no cost) which
contains more details concerning the subjects discussed in this Prospectus. The
following is the Table of Contents for that Statement:
TABLE OF CONTENTS
Page
The Policy-General Provisions.............................................. 2
Owner and Joint Owner................................................. 2
Death of Annuitant.................................................... 2
Entire Contract...................................................... 2
Deferment of Payment and Transfers.................................... 2
Incontestability ..................................................... 2
Misstatement of Age or Sex............................................ 2
Nonparticipating...................................................... 2
Assignment ........................................................ 3
Evidence of Age or Survival........................................... 3
Federal Tax Matters . . . . ............................................... 3
Tax Status of the Policy.............................................. 3
Taxation of Companion................................................. 4
State Regulation of Companion ............................................. 4
Administration . . . . . . . . ............................................ 4
Records and Reports ....................................................... 5
Distribution of the Policies .............................................. 5
Custody of Assets . . . . . . . ........................................... 5
Historical Performance Data................................................ 5
Money Market Yields .................................................. 5
Other Subaccount Yields .............................................. 6
Average Annual Total Returns . . . . . . ............................ 6
Legal Matters . . . ...................................................... 7
Other Information . . . . . . ............................................. 7
Financial Statements . . . . . ........................................... 7
<PAGE>
================================================================================
STATEMENT OF ADDITIONAL INFORMATION
THE ULTRANNUITY SERIES V VARIABLE ANNUITY
Issued through: COMPANION LIFE SEPARATE ACCOUNT C
Offered by: COMPANION LIFE INSURANCE COMPANY
401 Theodore Fremd Avenue
Rye, New York 10580-1493
This Statement of Additional information expands upon subjects discussed in
the current Prospectus for the Ultrannuity Series V Variable Annuity Policy (the
"Policy") offered by Companion Life Insurance Company. You may obtain a copy of
the Prospectus dated May 1, 1997 by calling 1-800-494-0067 or by writing to the
Service Office: Companion Life Variable Product Service, P.O. Box 3664, Omaha,
Nebraska 68103-0664. Terms used in the current Prospectus for the Policy are
incorporated in this Statement.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND SHOULD BE
READ ONLY IN CONJUNCTION WITH THE PROSPECTUSES FOR THE POLICY AND THE SERIES
FUNDS
Dated: May 1, 1997
TABLE OF CONTENTS
Page
The Policy-General Provisions ............................................... 2
Owner and Joint Owner....................................................2
Death of Annuitant.......................................................2
Entire Contract .........................................................2
Deferment of Payment and Transfers.......................................2
Incontestability ........................................................2
Misstatement of Age or Sex...............................................2
Nonparticipating.........................................................2
Assignment...............................................................3
Evidence of Age or Survival..............................................3
Federal Tax Matters (33)......................................................3
Tax Status of the Policy.................................................3
Taxation of Companion....................................................4
State Regulation of Companion.................................................4
Administration ...............................................................4
Records and Reports...........................................................4
Distribution of the Policies (26).............................................4
Custody of Assets.............................................................5
Historical Performance Data (17)..............................................5
Money Market Yields......................................................5
Other Subaccount Yields..................................................6
Average Annual Total Returns.............................................6
Legal Matters.................................................................7
Other Information.............................................................7
Financial Statements (13).....................................................7
(Numbers in parentheses indicate corresponding sections of the Prospectus.)
<PAGE>
In order to supplement the description in the Prospectus, the following
provides additional information about Companion and the Policy which may be of
interest to an Owner.
THE POLICY - GENERAL PROVISIONS
Owner and Joint Owner
While the Owner is alive, only the Owner may exercise the rights under the
Policy. Ownership may be changed as described below under "Assignment." If there
are joint Owners, the signatures of both Owners are needed to exercise rights
under the Policy. If the Annuitant is other than the Owner, the Annuitant has no
rights under the Policy.
Death of Annuitant
If the Annuitant is an Owner or joint Owner, the death of the Annuitant
will be treated as the death of the Owner rather than of the Annuitant.
If the Annuitant is not an Owner and the Annuitant dies before the Annuity
Starting Date, the Owner may name a new Annuitant if such Owner(s) is not a
corporation or other non-individual. If the Owner does not name a new Annuitant,
the Owner will become the Annuitant.
Entire Contract
The entire contract is the Policy, data page, any riders and the signed
application, a copy of which will be attached to the Policy. All statements made
in the application will be deemed representations and not warranties. No
statement, unless it is in the application, will be used by Companion to contest
the Policy or deny a claim.
Any change of the Policy and any riders requires the consent of the
president, vice president, assistant vice president, the secretary or assistant
secretary of Companion. No agent or Registered Representative has authority to
change or waive any provision of the Policy.
Companion reserves the right to amend the Policies to meet the requirements
of, or take advantage of, the Internal Revenue Code, regulations or published
rulings. A Policy Owner can refuse such a change by giving Written Notice, but a
refusal may result in adverse tax consequences.
Deferment of Payment and Transfers
Companion will usually pay any amounts payable from the Variable Account as
a result of a partial withdrawal or cash surrender within seven days after
receiving written request at the Service Office in a form satisfactory to
Companion. Companion can postpone such payments or any transfers of amounts
between Subaccounts or into the Fixed Account if:
(a) the New York Stock Exchange is closed for other than customary
weekend and holiday closings;
(b) trading on the New York Stock Exchange is restricted;
(c) an emergency exists as determined by the Securities Exchange
Commission, as a result of which it is not reasonably practical to
dispose of securities, or not reasonably practical to determine the
value of the net assets of the Variable Account; or
(d) the Securities Exchange Commission permits delay for the protection
of security holders.
The applicable rules of the Securities Exchange Commission will govern as to
whether the conditions in (c) or (d) exist.
Companion may defer payment of partial withdrawals or a surrender from
the Fixed Account for up to six months from the date written request is received
at the Service Office.
Incontestability
Companion will not contest the validity of the Policy after the Date of
Issue.
Misstatement of Age or Sex
Companion may require proof of the age of the Annuitant before making
any life annuity payment. If the age or sex of the Annuitant has been misstated,
the Annuity Starting Date and Annuity Payments will be determined using the
correct age and sex. If misstatement of age or sex results in Annuity Payments
that are too large, the overpayments will be deducted from future Annuity
Payments. If Companion has made payments that are too small, the underpayments
will be added to the next payment. Adjustments for overpayments or underpayments
will include 6% interest.
Nonparticipating
No dividends will be paid. Neither the Owner nor the Beneficiary will
have the right to share in Companion's surplus earnings or profits.
Assignment
The Owner may change the ownership of the Policy or pledge it as collateral
by assigning it. No assignment will be binding on Companion until Companion
records and acknowledges it. The rights of any Payee will be subject to a
collateral assignment.
If the named Beneficiary is irrevocable, a change of ownership or a
collateral assignment may be made only by joint written request from the Owner
and the named Beneficiary. On the Annuity Starting Date, the Owner may select
another Payee, but the Owner retains all rights of ownership unless the Owner
signs an absolute assignment.
Evidence of Age or Survival
Companion reserves the right to require proof of the age or survival of
any Owner, Annuitant or Payee. No payment will be made until Companion receives
such proof.
Variable Annuity Units. All variable annuity payments other than the
first are determined by means of Variable Annuity Units credited to the Policy
with respect to the particular Payee. The number of Variable Annuity Units for
each applicable Subaccount is the amount of the first annuity payment
attributable to that Subaccount divided by the Annuity Unit Value for that
Subaccount as of the Annuity Starting Date. The number of Variable Annuity Units
of each particular Subaccount credited with respect to the Payee or Annuitant
then remains fixed unless a transfer of Variable Annuity Units is made as
described below. The number of Variable Annuity Units will not change as a
result of investment experience.
For any Valuation Period, the value of a Variable Annuity Unit of
a particular Subaccount is the Variable Annuity Unit value during the last
Valuation Period for that particular Subaccount, multiplied by the Net
Investment Factor for that Subaccount for the current Valuation Period. The
value of a Subaccount may increase or decrease from one Valuation Period to the
next.
The Net Investment Factor for any Subaccount for any Valuation
Period is determined by dividing (a) by (b) and then subtracting (c) from the
result where:
(a) is the net result of:
(1)the net asset value of a Portfolio share held in the subaccount
determined as of the end of the current Valuation Period, plus
(2)the per share amount of any declared and unpaid dividends or
capital gains accruing to that Portfolio, plus or minus
(3)a per share credit or charge with respect to any taxes paid or
reserved for by Companion during the Valuation Period which is
determined by Companion to be attributable to the operations of
the Subaccount;
(b) is the net asset value per share of the Fund held in the Subaccount
determined as of the end of the preceding Valuation Period plus or
minus the per share credit or charge with respect to any taxes paid
or reserved for the preceding Valuation Period; and
(c) is the asset charge factor determined by Companion for the Valuation
Period to reflect the Mortality and Expense Risk Charge and the
Administrative Expense Charge deducted from the Variable Account.
This factor is equal, on an annual basis, to 1.20% of the net asset
value of the Variable Account.
The result is then multiplied by a factor that offsets the Assumed Investment
Rate used to establish the Annuity Payment Rates found in the applicable
Contract, which allows the actual investment rate to be credited. For a one day
Valuation Period the factor is 0.99989255 using an Assumed Investment Rate of 4%
per year.
FEDERAL TAX MATTERS
Tax Status of the Policy
Diversification Requirements. Section 817(h) of the Internal Revenue
Code provides that in order for a variable contract which is based on a
segregated asset account to qualify as an annuity contract under the Code, the
investments made by such account must be "adequately diversified" in accordance
with Treasury regulations. The Treasury regulations issued under Section 817(h)
(Treas. Reg. ss. 1.817-5) apply a diversification requirement to each of the
Subaccounts of the Variable Account. The Variable Account, through the Series
Funds and their Portfolios, intends to comply with those diversification
requirements. Companion and the Series Funds have entered into agreements
regarding participation in the Series Funds that requires the Series Funds and
their Portfolios to be operated in compliance with the Treasury regulations.
Owner Control. In certain circumstances, owners of variable annuity
contracts may be considered the owners, for federal income tax purposes, of the
assets of the separate account used to support their contracts. In those
circumstances, income and gains from the separate account assets would be
includible in the variable contract owner's gross income. The IRS has stated in
published rulings that a variable contract owner will be considered the owner of
separate account assets if the contract owner possesses incidents of ownership
in those assets, such as the ability to exercise investment control over the
assets. The Treasury Department also announced, in connection with the issuance
of regulations concerning diversification, that those regulations "do not
provide guidance concerning the circumstances in which investor control of the
investments of a segregated asset account may cause the investor (i.e., the
Owner), rather than the insurance company, to be treated as the owner of the
assets in the account." This announcement also stated that guidance would be
issued by way of regulations or rulings on the "extent to which policyholders
may direct their investments to particular subaccounts without being treated as
owners of the underlying assets."
The ownership rights under the Policy are similar to, but different in
certain respects from, those described by the IRS in rulings in which it was
determined that policy owners were not owners of separate account assets. For
example, the Owner has additional flexibility in allocating premium payments and
policy values. These differences could result in an Owner being treated as the
owner of a pro-rata portion of the assets of the Separate Account. In addition,
Companion does not know what standards will be set forth, if any, in the
regulations or rulings which the Treasury Department has stated it expects to
issue. Companion therefore reserves the right to modify the Policy as necessary
to attempt to prevent an Owner from being considered the owner of a pro-rata
share of the assets of the Variable Account or to otherwise qualify the Policy
for favorable tax treatment.
Distribution Requirements. The Code also requires that Nonqualified
Policies contain specific provisions for distribution of Policy Proceeds upon
the death of an Owner. In order to be treated as an annuity contract for federal
income tax purposes, the Code requires that such Policies provide that if an
Owner dies on or after the Annuity Starting Date and before the entire interest
in the Policy has been distributed, the remaining portion must be distributed at
least as rapidly as under the method in effect on the Owner's death. If an Owner
dies before the Annuity Starting Date, the entire interest in the Policy must
generally be distributed within five years after the Owner's date of death,
these requirements are considered to be satisfied if the entire interest in the
Policy is used to purchase an immediate annuity under which payments will begin
within one year of the Owner's death and will be made for the life of the
Beneficiary or for a period not extending beyond the life expectancy of the
Beneficiary. If the Beneficiary is the deceased Owner's surviving spouse, the
Policy may be continued with the Owner's surviving spouse as the new Owner. The
Policy contains provisions intended to comply with these requirements of the
Code. No regulations interpreting these requirements of the Code have yet been
issued and thus no assurance can be given that the provisions contained in the
Policies satisfy all such Code requirements. The provisions contained in the
Policies will be reviewed and modified if necessary to assure that they comply
with the Code requirements when clarified by regulation or otherwise.
Taxation of Companion
Companion at present is taxed as a life insurance company under part I
of Subchapter L of the Code. The Variable Account is treated as part of
Companion and, accordingly, will not be taxed separately as a "regulated
investment company" under Subchapter M of the Code. Companion does not expect to
incur any federal income tax liability with respect to investment income and net
capital gains arising from the activities of the Variable Account retained as
part of the reserves under the Policy. Based on this expectation, it is
anticipated that no charges will be made against the Variable Account for
federal income taxes. If, in future years, any federal income taxes or related
economic burdens are incurred by Companion with respect to the Variable Account,
Companion may make a charge to the Variable Account.
STATE REGULATION OF COMPANION
Companion is subject to the laws of New York governing insurance
companies and to regulation by the New York Division of Insurance. An annual
statement in a prescribed form is filed with the Department of Insurance each
year covering the operation of Companion for the preceding year and its
financial condition as of the end of such year. Regulation by the Department of
Insurance includes periodic examination to determine Companion's contract
liabilities and reserves so that the Department may certify the items are
correct. Companion's books and accounts are subject to review by the Department
of Insurance at all times and a full examination of its operations is conducted
periodically by the National Association of Insurance Commissioners. In
addition, Companion is subject to regulation under the insurance laws of other
jurisdictions in which it may operate.
ADMINISTRATION
Effective March 3, 1997, Companion Life Insurance Company performs all
administration for the Policies. Prior to then, Companion had an administrative
services agreement with The Continuum Company, Inc. (a/k/a Vantage Computer
Systems), ("Vantage"), P.O. Box 419472, Kansas City, Missouri 64141-6472. The
services provided by Vantage under the agreement included issuance and
redemption of the Policies, maintenance of records concerning the Policies, and
certain valuation services. Since sales of the Policies did not commence until
January 1997, Companion paid no compensation to Vantage for any prior years.
RECORDS AND REPORTS
All records and accounts relating to the Variable Account will be
maintained by Companion or by its Administrator. As presently required by the
Investment Company Act of 1940 and regulations promulgated thereunder, Companion
will mail to all Policy Owners at their last known address of record, at least
annually, financial statements of the Variable Account and such other
information as may be required under that Act or by any other applicable law or
regulation. Policy Owners will also receive confirmation of each financial
transaction and any other reports required by applicable state and federal laws,
rules, and regulations.
DISTRIBUTION OF THE POLICIES
The Policies are offered to the public through brokers licensed under
the federal securities laws and state insurance laws. The offering of the
Policies is continuous and Companion does not anticipate discontinuing the
offering of the Policies. However, Companion reserves the right to discontinue
the offering of the Policies.
Mutual of Omaha Investor Services, Inc. ("MOIS") will be the principal
underwriter of the Policies. The Policies will be distributed by MOIS through
retail broker-dealers. Commissions payable to a broker-dealer will be up to 7.0%
of Purchase Payments.
CUSTODY OF ASSETS
The assets of each of the Subaccounts of the Variable Account are held
by Companion. The assets of the Variable Account are segregated and held
separate and apart from Companion's general account assets. Companion or the
Administrator maintains records of all purchases and redemptions of shares of
the Series Funds held by each of the Subaccounts. Additional protection for the
assets of the Variable Account is afforded by Companion's fidelity bond,
presently in the amount of $10 million, covering the acts of officers and
employees of Companion.
HISTORICAL PERFORMANCE DATA
From time to time, Companion may disclose yields, total returns, and
other performance data pertaining to the Policies for a Subaccount. Such
performance data will be computed, or accompanied by performance data computed,
in accordance with the standards defined by the Securities and Exchange
Commission.
The yields and total returns of the Subaccounts of the Variable Account
normally will fluctuate over time. THEREFORE, THE DISCLOSED YIELDS AND TOTAL
RETURNS FOR ANY GIVEN PAST PERIOD ARE NOT AN INDICATION OR REPRESENTATION OF
FUTURE YIELDS OR RATES OF RETURN. A Subaccount's actual yield and total return
is affected by the types and quality of portfolio securities held by the
Portfolio and its operating expenses.
Because of the charges and deductions imposed under a Policy, the yields
and total returns for the Subaccounts will be lower than the yields and total
returns for their respective Portfolios. The yield figures will not reflect the
Withdrawal Charge.
Money Market Yields
From time to time, advertisements and sales literature may quote the
current annualized yield of the Money Market Subaccount for a seven-day period
in a manner which does not take into consideration any realized or unrealized
gains or losses on shares of the Money Market Portfolio or on its portfolio
securities.
This current annualized yield is computed by determining the net change
(exclusive of realized gains and losses on the sale of securities and unrealized
appreciation and depreciation) at the end of the seven-day period in the value
of a hypothetical account under a Policy having a balance of one Accumulation
Unit of the Money Market Subaccount at the beginning of the period to determine
the base period return, and annualizing this quotient on a 365-day basis. The
net change in account value reflects: (1) net income from the Portfolio
attributable to the hypothetical account; and (2) charges and deductions imposed
under the Policy which are attributable to the hypothetical account. The charges
and deductions include the per Unit charges for the hypothetical account for:
(1) the annual Policy Fee; (2) the Administrative Expense Charge; and (3) the
Mortality and Expense Risk Charge. The $30 annual Policy Fee is reflected as an
annual 0.10% charged daily, based on an anticipated average Accumulation Value
of $30,000. Yield figures will not reflect the Withdrawal Charge.
Because of the charges and deductions imposed under the Policy, the
yield for the Money Market Subaccount will be lower than the yield for the Money
Market Portfolio.
The Securities and Exchange Commission also permits Companion to
disclose the effective yield of the Money Market Subaccount for the same
seven-day period, determined on a compounded basis. The effective yield is
calculated by compounding the unannualized base period return by adding one to
the base period return, raising the sum to a power equal to 365 divided by 7,
and subtracting one from the result.
The current and effective yields on amounts held in the Money Market
Subaccount normally will fluctuate on a daily basis. THEREFORE, THE DISCLOSED
YIELD FOR ANY GIVEN PAST PERIOD IS NOT AN INDICATION OR REPRESENTATION OF FUTURE
YIELDS OR RATES OF RETURN. The Money Market Subaccount's actual yield is
affected by changes in interest rates on money market securities, average
portfolio maturity of the Money Market Portfolio, the types of quality of
portfolio securities held by the Money Market Portfolio and the Money Market
Portfolio's operating expenses. Yields figures do not reflect the effect of any
Withdrawal Charge that may be applicable to a Policy.
Other Subaccount Yields
From time to time, sales literature or advertisements may quote the
current annualized yield of one or more of the Subaccounts (except the Money
Market Subaccount) for a Policy for 30-day or one-month periods. The annualized
yield of a Subaccount refers to income generated by the Subaccount over a
specific 30-day or one-month period. Because the yield is annualized, the yield
generated by a Subaccount during a 30-day or one-month period is assumed to be
generated each period over a 12-month period.
The yield is computed by: (a) dividing the net investment income of the
Portfolio attributable to the Subaccount Accumulation Units less Subaccount
expenses for the period by the maximum offering price per Accumulation Unit on
the last day of the period times the daily average number of units outstanding
for the period; (b) compounding that yield for a six-month period; and (c)
multiplying that result by 2. Expenses attributable to the Subaccount include:
(a) the annual Policy Fee; (b) the Administrative Expense Charge; and (c) the
Mortality and Expense Risk Charge. The $30 annual Policy Fee is reflected as an
annual 0.10% charged daily in the yield calculation, based on an anticipated
average Accumulation Value of $30,000. The 30-day or one-month yield is
calculated according to the following formula:
Yield = [2 {a-b + 1} 6 - 1]
[ cd ]
Where:
a =-- net income of the Portfolio for the 30-day or
one-month period attributable to the Subaccount's
Accumulation Units.
b =-- expenses of the Subaccount for the 30-day or one-month period.
c =-- the average number of Accumulation Units outstanding.
d =-- the Accumulation Unit value at the close of the last day in
the 30-day or one-month period.
Because of the charges and deductions imposed under the Policies, the
yield for a Subaccount will be lower than the yield for the corresponding Series
Fund Portfolio.
Yield calculations do not take into account the Withdrawal Charge under
the Policy (a maximum of 7% of the Purchase Payments surrendered or withdrawn).
Average Annual Total Returns
From time to time, sales literature or advertisements may also quote
average annual total returns for one or more of the Subaccounts for various
periods of time.
When a Subaccount has been in operation for 1, 5, and 10 years,
respectively, the average annual total return for these periods will be
provided. Until a Subaccount has been in operation for 10 years, Companion will
always include quotes of average annual total return for the period measured
from the date the Policies were first offered for sale. Average annual total
returns for other periods of time may, from time to time, also be disclosed.
Average annual total returns represent the average annual compounded
rates of return that would equate an initial investment of $1,000 under a Policy
to the redemption value of that investment as of the last day of each of the
periods. Average annual total returns will be calculated using Subaccount
Accumulation Unit values which Companion calculates at the end of each Valuation
Period based on the performance of the Subaccount's underlying Portfolio, the
deductions for (a) the annual Policy Fee; (b) the Administrative Expense Charge;
and (c) the Mortality and Expense Risk Charge. The $30 annual Policy Fee is
reflected as an annual 0.10% charged daily in the calculation of average annual
total returns, based on an anticipated average Accumulation Value of $30,000.
The calculation also assumes surrender of the Policy at the end of the period
for the return quotation. Standard total returns will therefore reflect a
deduction of any applicable Withdrawal Charge. The total return will then be
calculated according to the following formula:
P(1+TR) n = ERV
Where:
P =-- a hypothetical initial Purchase Payment of $1,000.
TR = -- the average annual total return.
ERV = -- the ending redeemable value (net of any applicable
Withdrawal Charge) of the hypothetical account at the end
of the period.
n =-- the number of years in the period.
Companion may disclose Cumulative Total Returns in conjunction with the
standard formats described above. The Cumulative Total Returns will be
calculated using the following formula:
CTR = (ERV/P) - 1
Where:
CTR = -- The Cumulative Total Return net of Subaccount
recurring charges for the period.
ERV = -- The ending redeemable value of the hypothetical
investment at the end of the period.
P = -- A hypothetical initial Purchase Payment of $1,000.
Other Information
The following is a partial list of those publications which may be cited
in the Series Funds' advertising shareholder materials which contain articles
describing investment results or other data relative to one or more of the
Subaccounts. Other publications may also be cited.
Across the Board
Advertising Age
American Banker
Barron's
Best's Review
Broker World
Business Insurance
Business Month
Business Week
Changing Times
Consumer Reports
Economist
Financial Planning
Financial World
Forbes
Fortune
Inc.
Institutional Investor
Insurance Forum
Insurance Sales
Insurance Week
Journal of Accountancy
Journal of the American Society of CLU & ChFC
Journal of Commerce
Life Association News
Life Insurance Selling
Manager's Magazine
Market Facts
Money
LEGAL MATTERS
We know of no material legal proceedings pending to which the Variable
Account is a party or which would materially affect the Variable Account. We are
not involved in any litigation of material importance to our total assets or to
the Variable Account. Legal matters in connection with the Policy have been
passed upon by our Law Staff.
OTHER INFORMATION
A Registration Statement has been filed with the Securities and Exchange
Commission, under the Securities Act of 1933 as amended, with respect to the
Policies discussed in this Statement of Additional Information. Not all of the
information set forth in the Registration Statement, amendments and exhibits
thereto has been included in the Prospectus or this Statement of Additional
Information. Statements contained in the Prospectus and this Statement of
Additional Information concerning the content of the Policies and other legal
instruments are intended to be summaries. For a complete statement of the terms
of these documents, reference should be made to the instruments filed with the
Securities and Exchange Commission.
FINANCIAL STATEMENTS
This Statement of Additional Information contains financial statements for
the Variable Account as of and for the year ended December 31, 1996 which have
been audited by Deloitte & Touche, LLP, independent auditors, as stated in their
report appearing herein. The statement of changes in net assets of the Variable
Account for the year ended December 31, 1995 contained in this Statement of
Additional Information was audited by Coopers & Lybrand, Omaha, Nebraska,
independent auditors, as stated in their report appearing herein.
The Financial Statements of Companion Life Insurance Company as of and for
the year ended December 31, 1996 included in this Statement of Additional
Information have been audited by independent auditors Deloitte & Touche LLP,
Omaha, Nebraska, as stated in their report appearing herein. The financial
statements of Companion Life Insurance Company as of December 31, 1995 and for
the two years then ended was audited by independent auditors Coopers & Lybrand,
New York, New York, as stated in their report appearing herein. The financial
statements of Companion Life Insurance Company should be considered only as
bearing on the ability of Companion Life to meet its obligations under the
Policies. They should not be considered as bearing on the investment performance
of the assets held in the Variable Account.
<PAGE>
COMPANION LIFE
INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF
UNITED OF OMAHA LIFE INSURANCE COMPANY)
STATUTORY FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 1996, 1995 AND 1994
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Companion Life Insurance Company
Rye, New York
We have audited the accompanying statutory statement of admitted assets,
liabilities, and surplus of Companion Life Insurance Company as of December 31,
1996, and the related statutory statements of income and changes in surplus, and
cash flows for the year then ended. Our responsibility is to express an opinion
on these financial statements based on our audit. The financial statements of
Companion Life Insurance Company for the years ended December 31, 1995 and 1994
were audited by other auditors whose report, dated April 9, 1997, expressed an
unqualified opinion on the presentation of those financial statements in
conformity with accounting practices prescribed or permitted by the Insurance
Department of the State of New York and also expressed an opinion that the
financial statements were not presented in conformity with generally accepted
accounting principles. The financial statements are the responsibility of the
Company's management.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
As more fully described in Note 1 to the financial statements, the Company has
prepared these financial statements in conformity with accounting practices
prescribed or permitted by the Insurance Department of the State of New York.
Those practices differ from generally accepted accounting principles. The
effects on the financial statements of the differences between the statutory
basis of accounting and generally accepted accounting principles are not
reasonably determinable, but are presumed to be material.
In our opinion, because of the effects of the matter discussed in the preceding
paragraph, the 1996 financial statements referred to above do not present fairly
the financial position of Companion Life Insurance Company as of December 31,
1996, and the results of its operations and its cash flows for the year then
ended, in conformity with generally accepted accounting principles.
However, in our opinion, the statutory financial statements referred to above
present fairly, in all material respects, the admitted assets, liabilities, and
surplus of Companion Life Insurance Company as of December 31, 1996, and the
results of its operations and its cash flows for the year then ended, on the
basis of accounting described in Note 1 to the financial statements.
DELOITTE & TOUCHE LLP
New York, New York
April 21, 1997
<PAGE>
Report of Independent Accountants
To the Board of Directors and Stockholder of
Companion Life Insurance Company
We have audited the accompanying balance sheet of Companion Life Insurance
Company (a New York corporation and wholly-owned subsidiary of United of Omaha
Life Insurance Company), as of December 31, 1995, and the related statements of
operations, capital and surplus, and cash flows for each of the two years in the
period ended December 31, 1995. These financial statements are the
responsibility of the Company's management. Our responsibility is to report on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our originally issued report dated February 23, 1996, we expressed an opinion
that the 1995 financial statements, prepared using accounting practices
prescribed or permitted by the Insurance Department of the State of New York,
presented fairly, in all material respects, the financial position of Companion
Life Insurance Company as of December 31, 1995, and the results of its
operations and its cash flows for each of the two years in the period ended
December 31, 1995 in conformity with generally accepted accounting principles.
As described in Note 1 to the financial statements, pursuant to the provisions
of Statement of Financial Accounting Standards Board Interpretation 40,
Applicability of Generally Accepted Accounting Principles to Mutual Life
Insurance and Other Enterprises, as amended ("FIN 40"), financial statements of
mutual life insurance enterprises for periods ending on or before December 15,
1996, prepared using accounting practices prescribed or permitted by insurance
regulators (statutory financial statements) are no longer considered
presentations in conformity with generally accepted accounting principles.
Accordingly, our present opinion on the presentation of the 1995 financial
statements in accordance with generally accepted accounting principles, as
presented herein, is different from that expressed in our previous report.
In our opinion, because of the effects of the matter discussed in the preceding
paragraph, the financial statements referred to above do not present fairly, in
conformity with generally accepted accounting principles, the financial position
of Companion Life Insurance Company as of December 31, 1995, or the results of
its operations and its cash flows for each of the two years in the period ended
December 31, 1995.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Companion Life Insurance
Company as of December 31, 1995, and the results of its operations and its cash
flows for the each of the two years in the period ended December 31, 1995, in
conformity with accounting practices prescribed or permitted by the Insurance
Department of the State of New York.
Coopers & Lybrand L.L.P.
New York, New York
February 23, 1996 [except for the change in our opinion as required by FIN 40,
for which the date is April 9, 1997]
<PAGE>
COMPANION LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF UNITED OF OMAHA LIFE INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND SURPLUS
AS OF DECEMBER 31, 1996 AND 1995
- -------------------------------------------------------------------------------------------
ADMITTED ASSETS 1996 1995
<S> <C> <C>
Cash and invested assets (Note 2):
Bonds $ 370,927,491 $ 299,274,340
Mortgage loans 16,489,046 21,596,144
Policy loans 11,586,845 12,096,063
Cash and short-term investments 3,662,460 3,661,177
Other invested assets 61,197 -
------------ -----------
Total cash and invested assets 402,727,039 336,627,724
Premiums deferred and uncollected 4,051,720 3,758,690
Investment income due and accrued 3,736,086 3,435,558
Other assets 475,433 777,328
Separate accounts assets 2,110,579 597,883
------------ ------------
Total admitted assets $ 413,100,857 $ 345,197,183
============= ===============
LIABILITIES
Policy reserves (Notes 5 and 7):
Aggregate reserve for policies and contracts $ 337,786,345 $ 274,395,967
Policy and contract claims 4,569,530 2,818,717
Other reserves 408,523 357,769
------------ ------------
Total policy reserves 342,764,398 277,572,453
Interest maintenance reserve 665,315 453,991
Asset valuation reserve 3,178,271 2,827,596
General expenses and taxes due or accrued (Note 4) 926,323 570,704
Funds held under reinsurance treaties 7,488,832 8,348,218
Reinsurance in unauthorized companies 34,128 47,177
Amounts due reinsurers 79,885 52,552
Federal income taxes due or accrued (Note 3) 700,000 389,000
Other liabilities 3,439,757 3,484,167
Separate accounts liabilities 2,098,801 584,527
------------ ------------
Total liabilities 361,375,710 294,330,385
------------ ------------
SURPLUS
Capital stock, $400 par value; 5,000 shares
authorized and outstanding 2,000,000 2,000,000
Gross paid-in and contributed surplus 45,650,000 45,650,000
Special surplus and contingency reserve 400,297 359,960
Unassigned surplus (Note 9) 3,674,850 2,856,838
------------ ------------
Total surplus 51,725,147 50,866,798
------------ ------------
Total liabilities and surplus $ 413,100,857 $ 345,197,183
============ ============
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
COMPANION LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF UNITED OF OMAHA LIFE INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
- -----------------------------------------------------------------------------------------------------------------
1996 1995 1994
<S> <C> <C> <C>
Income:
Net premiums and annuity considerations (Notes 5 and 6) $ 90,179,915 $ 72,097,554 $ 48,161,445
Other considerations and fund deposits 2,048,423 668,323 15,152
Net investment income (Note 2) 27,824,853 23,605,272 19,640,976
Other income 179,622 380,099 488,529
------------- ----------- -----------
Total income 120,232,813 96,751,248 68,306,102
------------- ----------- -----------
Benefits and expenses:
Policyholder and beneficiary benefits (Note 5) 32,338,175 22,458,731 19,514,839
Increase in reserves for policyholder and
beneficiary benefits 63,390,378 54,205,859 31,906,878
Commissions 4,839,995 3,978,746 2,558,764
Operating expenses (Notes 4 and 5) 14,298,328 13,378,018 11,475,056
Net transfers to separate accounts 1,219,275 545,430 -
------------- ----------- -----------
Total benefits and expenses 116,086,151 94,566,784 65,455,537
------------- ----------- -----------
Net gain from operations before federal income
taxes and net realized capital losses 4,146,662 2,184,464 2,850,565
Federal income taxes (Note 3) 2,544,690 1,445,927 2,052,319
------------- ----------- -----------
Net gain from operations before net
realized capital losses 1,601,972 738,537 798,246
Net realized capital losses (Note 2) - (691) -
------------- ----------- -----------
Net income $ 1,601,972 $ 737,846 $ 798,246
============== ============ ===========
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
COMPANION LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF UNITED OF OMAHA LIFE INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF CHANGES IN SURPLUS
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
- -----------------------------------------------------------------------------------------------------------------------
1996 1995 1994
<S> <C> <C> <C>
Capital stock:
Balance at beginning and end of year $ 2,000,000 $ 2,000,000 $ 2,000,000
------------ ------------ ---------------
Gross paid-in and contributed:
Balance at beginning of year 45,650,000 45,650,000 25,650,000
Paid-in by United of Omaha Life Insurance Company - - 20,000,000
------------ ------------ ---------------
Balance at end of year 45,650,000 45,650,000 45,650,000
------------ ------------ ---------------
Special surplus and contingency reserve:
Balance at beginning of year 359,960 298,105 222,560
Increase in group contingency life reserve 40,337 61,855 75,545
------------ ------------ ---------------
Balance at end of year 400,297 359,960 298,105
------------ ------------ ---------------
Unassigned surplus:
Balance at beginning of year 2,856,838 2,761,491 2,338,424
Net income 1,601,972 737,846 798,246
Change in separate accounts surplus (1,578) 13,356 -
Change in net unrealized capital losses (Note 2) (217,103) (382,026) -
(Increase) decrease in:
Non-admitted assets (126,840) (78,228) 56,754
Liability for reinsurance in unauthorized companies 13,049 (221) (1,724)
Asset valuation reserve (350,675) (133,525) (354,664)
Contingency reserve (40,337) (61,855) (75,545)
Pension plan contribution (Note 4) (60,476) - -
------------ ------------ ---------------
Balance at end of year 3,674,850 2,856,838 2,761,491
------------ ------------ ---------------
Total surplus $ 51,725,147 $ 50,866,798 $ 50,709,596
============= ============ ===============
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
COMPANION LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF UNITED OF OMAHA LIFE INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
- ---------------------------------------------------------------------------------------------------------------
1996 1995 1994
<S> <C> <C> <C>
Cash from operations:
Premiums, annuity considerations and fund deposits $ 92,070,411 $ 71,904,608 $ 47,200,645
Net investment income 27,379,305 23,188,680 18,742,752
Other income 249,692 426,796 309,949
Benefits (30,290,432) (21,974,648) (20,017,495)
Commissions and general expenses (18,543,667) (17,477,981) (12,807,114)
Federal income taxes paid (2,346,798) (1,665,994) (2,122,134)
Other operating expenses (1,670,344) (786,187) (217,918)
------------- ------------- -------------
Net cash from operations 66,848,167 53,615,274 31,088,685
------------- ------------- -------------
Cash from investments:
Proceeds from investments sold, redeemed or matured:
Bonds 32,351,850 16,456,527 15,047,578
Mortgage loans 5,134,099 6,273,360 7,946,922
Taxes on capital (gains) losses (48,286) 3,153 (67,353)
Cost of investments acquired:
Bonds (103,666,996) (78,529,680) (75,613,066)
Other invested assets (61,197) - (2,769)
Net (increase) decrease in policy loans 509,218 (436,744) 519,633
------------- ------------- -------------
Net cash from investments (65,781,312) (56,233,384) (52,169,055)
------------- ------------- -------------
Cash from financing and other sources:
Other cash provided 260,521 2,204,401 1,453,722
Other cash used (1,326,093) (139,002) (205,276)
Capital and surplus paid-in - - 20,000,000
------------- ------------- -------------
Net cash from financing and other sources (1,065,572) 2,065,399 21,248,446
------------- ------------- -------------
Net change in cash and short-term investments 1,283 (552,711) 168,076
Cash and short-term investments:
Beginning of year 3,661,177 4,213,888 4,045,812
------------- ------------- -------------
End of year $ 3,662,460 $ 3,661,177 $ 4,213,888
============= ============= =============
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
COMPANION LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF UNITED OF OMAHA LIFE INSURANCE COMPANY)
NOTES TO STATUTORY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations - Companion Life Insurance Company (the Company),
domiciled in the State of New York, is a wholly-owned subsidiary of United
of Omaha Life Insurance Company (United of Omaha), which is a wholly owned
subsidiary of Mutual of Omaha Insurance Company (Mutual of Omaha), a
mutual life and health and accident insurance company, domiciled in the
State of Nebraska. The Company has insurance licenses to operate in three
states, New York, New Jersey and Connecticut. Individual annuity and life
insurance products are sold primarily through a network of Mutual of Omaha
career agents, direct mail, stockbrokers, financial planners and banks.
Basis of Presentation - The accompanying financial statements have been
prepared in conformity with accounting practices prescribed or permitted
by the Insurance Department of the State of New York. Prescribed statutory
accounting practices are contained in a variety of publications of the
National Association of Insurance Commissioners (NAIC), as well as state
laws, regulations, and general administrative rules. Permitted statutory
accounting practices encompass all accounting practices which may not
necessarily be prescribed but are not prohibited.
The 1995 and 1994 financial statements, presented for comparative
purposes, were previously described as also being prepared in accordance
with generally accepted accounting principles (GAAP) for mutual life
insurance companies and their wholly-owned life insurance company
subsidiaries. Pursuant to Financial Accounting Standards Board
Interpretation 40, Applicability of Generally Accepted Accounting
Principles to Mutual Life Insurance and Other Enterprises ("FIN 40"), as
amended, which is effective for 1996 annual financial statements,
financial statements based on statutory accounting practices can no longer
be described as prepared in conformity with GAAP. Furthermore, financial
statements prepared in conformity with statutory accounting practices for
periods prior to the effective date of FIN 40 are no longer considered
GAAP presentations when presented in comparative form with financial
statements for periods subsequent to the effective date. Accordingly, the
prior independent auditors' reports have been reissued in accordance with
FIN 40.
The accompanying statutory financial statements vary in some respects from
those that would be presented in conformity with GAAP. The most
significant differences include: (a) bonds are generally carried at
amortized cost rather than being valued at either amortized cost or fair
value based on their classification according to the Company's ability and
intent to hold or trade the securities; (b) acquisition costs, such as
commissions and other costs related to acquiring new business, are charged
to operations as incurred and not deferred, whereas premiums are taken
into income on a pro rata basis over the respective term of the policies;
(c) deferred federal income taxes are not provided for temporary
differences between tax and financial reporting; (d) no provision has been
made for federal income taxes on unrealized appreciation of investments
which are carried at market value; (e) asset valuation reserves (AVR) and
interest maintenance reserves (IMR) are established; (f) different
actuarial assumptions are used for calculating certain policy reserves;
and (g) changes in certain assets designated as "non-admitted" assets have
been charged to unassigned surplus. The aggregate effect of the foregoing
differences on the accompanying statutory financial statements has not
been determined, but was presumed to be material.
Management is required to make estimates and assumptions that affect the
reported amounts in the statutory financial statements. Actual results
could differ significantly from those estimates.
Investments - Bonds are generally stated at amortized cost. Bonds not
backed by other loans are amortized using the scientific method.
Loan-backed bonds and structured securities are amortized using the
interest method based on anticipated prepayments at the date of purchase.
Changes in estimated cash flows from the original purchase assumptions are
accounted for using the retrospective method.
Mortgage loans and policy loans are stated at the aggregate unpaid
balance. In accordance with statutory accounting practices, the Company
records a general reserve for losses on mortgage loans as part of the
asset valuation reserve.
Short-term investments include all investments whose maturities, at the
time of acquisition, are one year or less, and are stated at cost, which
approximates market.
Investment income is recorded when earned. Realized gains and losses on
sale or maturity of investments are determined on the specific
identification basis. Any portion of invested assets designated as
"non-admitted" was excluded from the statutory statements of admitted
assets, liabilities and surplus and recorded as a change in unrealized
capital gains (losses).
Asset Valuation and Interest Maintenance Reserves - The Company
establishes certain reserves as promulgated by the NAIC. The AVR is
established for the specific risk characteristics of invested assets of
the Company. The IMR is established for the realized gains and losses on
the redemption of fixed income securities resulting from changes in
interest rates, net of tax. Gains and losses pertaining to the IMR are
subsequently amortized into investment income over the expected remaining
period to maturity of the investments sold or called.
Policy Reserves - Policy reserves provide amounts adequate to discharge
estimated future obligations in excess of estimated future premiums on
policies in force. Reserves for life policies are computed principally by
using the Commissioners' Reserve Valuation Method basis or the net level
premium basis with assumed interest rates (2.5% to 6.0%) and mortality
(1941, 1958 and 1980 CSO tables) as prescribed by regulatory authorities.
Annuity reserves are based primarily upon the 1937 Standardized Annuity
Table with interest rates ranging from 2.5% to 3.5%, the 1971 Individual
Annuity Mortality Table with interest rates ranging from 4.0% to 7.5%, or
the 1983a Individual Annuity Mortality Table with interest rates ranging
from 5.25% to 9.25%. Policy and contract claim liabilities include
provisions for reported claims and estimates for claims incurred but not
reported. To the extent the ultimate liability differs from the amounts
recorded, such differences are reflected in operations when additional
information becomes available.
Premiums and Related Commissions - Premiums are recognized as income over
the premium paying period. Commissions and other expenses related to the
acquisition of policies are charged to operations as incurred.
Federal Income Taxes - The Company files a consolidated federal income tax
return with Mutual of Omaha and other eligible subsidiaries. The method of
allocating taxes among the companies is subject to a written agreement
approved by the Board of Directors. Each company's provision for federal
income taxes is based on a separate return calculation with each company
recognizing tax benefits of net operating loss carryforwards and tax
credits on a separate return basis.
The provision for federal income taxes is based on income which is
currently taxable. Deferred federal income taxes are not provided for
temporary differences between income tax and statutory reporting. The
Company recognizes the benefits of investment tax carryforwards when
realized.
Non-Admitted Assets - Certain assets designated as "non-admitted" assets,
principally receivables and office furniture and equipment, are excluded
from the statutory statements of admitted assets, liabilities and surplus.
The net change in such assets is charged or credited directly to
unassigned surplus.
Fair Values of Financial Instruments - The following methods and
assumptions were used by the Company in estimating its fair value
disclosures for financial instruments:
Cash, Short-Term Investments and Other Invested Assets - The carrying
amounts reported in the statutory statements of admitted assets,
liabilities and surplus approximate their fair values.
Bonds - The fair values for bonds are based on quoted market prices,
where available. For bonds not actively traded, fair values are
estimated using values obtained from independent pricing services or
based on expected future cash flows using a current market rate
applicable to the yield, credit quality, and maturity of the
investments.
Mortgage Loans - The fair values for mortgage loans are estimated using
discounted cash flow analyses, using interest rates currently being
offered for similar loans to borrowers with similar credit ratings,
credit quality, and maturity of the investments.
Policy Loans - The Company does not believe an estimate of the fair
value of policy loans can be made without incurring excessive cost.
Policy loans have no stated maturities and are usually repaid by
reductions to benefits and surrenders. Because of the numerous
assumptions which would have to be made to estimate fair value, the
Company believes that such information would not be meaningful.
Separate Accounts - The assets of the separate accounts shown in the
statutory statements of admitted assets, liabilities and surplus are
carried at fair value and consist primarily of mutual funds held by the
Company for the benefit of policyholders under specific individual annuity
contracts. Benefits paid to separate account policyholders are reflected
in the statutory statements of income, but are offset by transfers from
the separate accounts. The payment of such benefits and the earning of
investment income constitute the only significant activities in the
separate accounts.
Reclassifications - Certain reclassifications have been made to prior
years amounts to conform with current year presentation with no changes to
unassigned surplus or net income.
2. INVESTMENTS
The amortized cost, gross unrealized gains, gross unrealized losses, and
estimated fair value of the Company's investments in debt securities were
as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
At December 31, 1996:
<S> <C> <C> <C> <C>
Governments $ 883,638 $ 39,602 $ - $ 923,240
Special revenue 72,232,442 636,111 635,746 72,232,807
Political subdivisions 756,220 18,867 - 775,087
Public utilities 25,163,593 784,702 46,436 25,901,859
Industrials and miscellaneous 273,637,930 6,675,045 1,275,579 279,037,396
Credit-tenant loans 1,778,668 85,048 - 1,863,716
------------ ----------- ---------- ------------
$374,452,491 $ 8,239,375 $1,957,761 $ 380,734,105
============ =========== ========== ============
Bonds $370,927,491
Short-term investments 3,525,000
-----------
$374,452,491
=============
At December 31, 1995:
Governments $ 1,050,289$ 78,434$ - $ 1,128,723
States, territories
and possesssions 137,775 2,225 - 140,000
Special revenue 72,353,983 1,268,317 144,958 73,477,342
Political subdivisions 994,205 25,795 - 1,020,000
Public utilities 25,947,182 1,484,545 33,525 27,398,202
Industrials and miscellaneous 200,911,451 10,920,076 324,828 211,506,699
Credit-tenant loans 1,879,455 139,904 - 2,019,359
------------ ----------- ---------- ------------
$303,274,340 $13,919,296 $ 503,311 $316,690,325
============ =========== ========== ============
Bonds $299,274,340
Short-term investments 4,000,000
-----------
$303,274,340
</TABLE>
The amortized cost and estimated fair value of debt securities at December
31, 1996, by contractual maturity, are shown below. Expected maturities
will differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
Amortized Estimated
Cost Fair Value
Due in one year or less $ 7,053,359 $ 7,078,695
Due after one year through five years 84,438,500 86,474,784
Due after five years through ten years 110,733,859 113,342,995
Due after ten years 172,226,773 173,837,631
----------- --------------
$374,452,491 $ 380,734,105
============ ==============
The sources of net investment income were as follows:
1996 1995 1994
Bonds $ 25,415,169 $ 20,708,759 $ 15,963,937
Mortgage loans 1,751,301 2,264,264 3,017,737
Policy loans 569,200 583,981 585,934
Short-term investments 442,382 406,836 316,928
Other 40,513 42,117 24,517
------------- -------------- -------------
28,218,565 24,005,957 19,909,053
Investment expense (542,595) (484,211) (341,989)
Amortization of IMR 148,883 83,526 73,912
------------- -------------- -------------
$ 27,824,853 $ 23,605,272 $ 19,640,976
================ ================ =============
Realized capital gains and losses on invested assets consist of the
following:
Net
Gross Gross Realized
Realized Realized Gains
Gains Losses (Losses)
Year ended December 31, 1996:
Bonds $ 527,165 $ 2 $ 527,163
Mortgage loans 27,001 - 27,001
---------- --------------- ----------
$ 554,166 $ 2 554,164
========== ===============
Less capital gains tax (193,958)
Transfer to IMR (360,206)
Net realized capital gains (losses) $ -
===========
Year ended December 31, 1995:
Bonds $ 83,705 $ 1,063 $ 82,642
Mortgage loans 54,256 - 54,256
---------- --------------- ----------
$ 137,961 $ 1,063 136,898
============= ==============
Less capital gains tax (47,914)
Transfer to IMR (89,675)
-----------
Net realized capital gains (losses) $ (691)
===========
Year ended December 31, 1994:
Bonds $ 96,149 $ 48,306 $ 47,843
Mortgage loans 9,781 - 9,781
---------- --------------- ----------
$ 105,930 $ 48,306 57,624
============= =============
Less capital gains tax (20,168)
Transfer to IMR (37,456)
Net realized capital gains (losses) $ -
===========
At December 31, 1996, securities with an amortized cost of $274,028 were
on deposit with the New York State Insurance Department.
The Company invests in mortgage loans collateralized principally by
commercial real estate. The maximum percentage of any one loan to the
value of the security at the time of the loan was 75%. The Company did not
invest in any new mortgage loans during 1996 or 1995. The estimated fair
value of the mortgage loan portfolio totaled $16,960,455 and $22,745,530
at December 31, 1996 and 1995.
3. FEDERAL INCOME TAXES
The provision for federal income taxes reflects an effective income tax
rate which differs from the prevailing federal income tax rate primarily
as a result of income and expense recognition differences between
statutory and income tax reporting. The major differences include
capitalization and amortization of certain acquisition amounts for tax
purposes, different methods for determining statutory and tax insurance
reserves, timing of the recognition of market discount on bonds and
certain accrued expenses, and the acceleration of depreciation for tax
purposes.
The Company's tax returns have been examined by the Internal Revenue
Service (IRS) through 1992. The tax returns for 1993 through 1995 are
currently under examination. Management believes the results of these
examinations will have no material impact on the Company's statutory
financial statements.
Under federal income tax law prior to 1984, the Company accumulated
approximately $2,623,000 of deferred taxable income which could become
subject to income taxes in the future under certain conditions. Management
believes the chance that those conditions will exist is remote.
4. RETIREMENT BENEFITS
The Company participates with affiliated companies in a noncontributory
defined benefit plan covering all United States employees meeting certain
minimum requirements. Mutual of Omaha and certain subsidiaries
(collectively referred to as the Companies) generally make annual
contributions to the plan in an amount between the minimum ERISA required
contribution and the maximum tax deductible contribution. Companion was
not required to make a contribution in 1996, 1995 and 1994. Funds for the
plan are held in the general and separate accounts of United of Omaha
under a group annuity contract.
Information regarding accrued benefits and net assets has not been
determined on an individual company basis. The Company's employees
comprise less than 1% of the total employee group in 1996, 1995 and 1994.
The Companies expensed contributions of $12,152,156, $9,114,637 and
$8,745,945 in 1996, 1995 and 1994, respectively. During 1996, the
Companies changed mortality tables from the 1971 GAM to the 1983 GAM. As a
result of the table change, the actuarial present value of accrued
benefits as of January 1, 1996, increased by $21,637,154. The Companies
made an additional contribution of $21,637,154 and recorded it as a direct
charge to surplus, net of federal income taxes of $7,573,004. A comparison
of accrued benefits and net assets for the entire plan as of January 1,
1996 and 1995 follows:
1996 1995
Actuarial present value of accrued benefits:
Vested $ 352,736,411 $ 280,516,363
Nonvested 4,036,059 1,263,379
---- ------------------- ---------
$ 356,772,470 $ 281,779,742
================= ==============
Net assets available for benefits $ 324,925,491 $ 301,773,000
================= ==============
Assumptions:
Annual investment return 9.00 % 9.16 %
Mortality table 1983 GAM 1971 GAM
Discount rate 7.62 % 7.93 %
The Companies also have the Mutual of Omaha 401(k) Long-Term Savings Plan
covering all United States employees who have completed one year of
service and have reached their 21st birthday. Participants may elect to
contribute 1% to 16% of their salary annually subject to plan and IRS
limitations. The Companies match at least 25% of the first 6% of the
contributions made by each participant. The Companies match up to an
additional 75% of the first 6% of the contributions made by each
participant if certain company-wide performance measures are met.
Contributions by the Companies were $5,600,402, $5,774,963 and $5,476,901
in 1996, 1995 and 1994, respectively.
The Companies provide certain postretirement medical and life insurance
benefits. The Companies subsidize these benefits with certain limitations
to retirees and eligible employee groups. Associates retiring on or before
December 31, 1997, are eligible for the full subsidy if they are at least
age 55 with at least 10 years of service and continuously covered by one
of the Companies' health plans for 10 years prior to retirement.
Associates retiring after December 31, 1997, must be at least age 60 with
at least 15 years of service and continuously covered for 15 years by one
of the Companies' health plans prior to retirement to be eligible for a
subsidy. Associates hired on or after January 1, 1995, are not eligible
for a Company subsidy. The cost of these postretirement benefits is
allocated to the Companies in accordance with an intercompany cost-sharing
arrangement. The Companies use the accrual method of accounting for
postretirement benefits and elected to amortize the original transition
obligation over 20 years.
The following table sets forth the Plan's funded status at December 31,
1996 and 1995:
1996 1995
Accumulated postretirement benefits obligation:
Fully eligible actives $ 8,008,428 $ 9,071,511
Retirees 76,135,759 72,687,982
----------- ----------
84,144,187 81,759,493
Unrecognized transition obligation (64,293,839) (69,716,631)
Unrecognized gain 7,928,001 9,951,187
----------- ----------
Total accrued $ 27,778,349 $ 21,994,049
============== =============
Assumptions:
Discount rate 7.50 % 7.25 %
Health care cost trend rate:
First year 8.50 % 8.50 %
Ultimate 5.00 % 5.00 %
Grading period 8 years 10 years
The Companies' net periodic postretirement benefit costs include the
following components at December 31, 1996, 1995 and 1994:
1996 1995 1994
Eligibility costs $ 1,384,687 $ 1,654,470 $ 1,839,420
Interest costs 5,908,779 5,567,144 5,760,689
Net amortization and deferral - (683,259) -
Amortization of transition obligation 4,018,365 4,100,979 4,100,979
------------ ---------- ---------
$11,311,831 $10,639,334 $ 11,701,088
=========== ============ ==========
The health care cost trend rate assumption has a significant effect on the
amounts reported. To illustrate, increasing the assumed health care cost
trend rate by one percentage point in each year would increase the
Companies' accumulated postretirement benefits obligation as of December
31, 1996 by approximately $6,130,000 and the estimated eligibility cost
and interest components of the net periodic postretirement benefit costs
for 1996 by approximately $799,000.
5. RELATED PARTY TRANSACTIONS
At December 31, 1996 and 1995, approximately $14,879,000 and $15,299,000
of the Company's investments in mortgage loans were held through joint
participants with United of Omaha. In 1995, United of Omaha purchased
approximately $3,287,000 of participating mortgage loans from the Company.
United of Omaha provides actuarial, data processing, consulting and
various other services to the Company. Charges for these services amounted
to approximately $7,164,000, $6,320,000 and $5,640,000 for 1996, 1995 and
1994, respectively. Included in other liabilities are unsettled balances
related to these services of approximately $555,000 and $885,000 as of
December 31, 1996 and 1995, respectively.
The Company also leases its principal office space from an affiliated
company under an operating lease. The lease, whose original term ran from
January 1, 1993 to December 1, 1995 has been renewed for an additional
five-year period commencing on January 1, 1996 and terminating December
31, 2000. The 1996, 1995 and 1994 rental expense under this lease was
approximately $420,000, $380,000 and $381,000, respectively.
In 1994, the Company received a $20,000,000 surplus contribution from
United of Omaha.
The Company also cedes group and individual life insurance to United of
Omaha. The amounts ceded by the Company and included in the statutory
statements of admitted assets, liabilities and surplus were as follows:
1996 1995
Amounts recoverable from reinsurance $ 28,945 $ 142,596
================ =============
Policy and contract claims $ 1,828,874 $ 2,272,546
=============== ============
Aggregate reserve for policies and contracts $ 3,749,310 $ 3,726,083
=============== ============
Funds held under reinsurance treaties $ 7,488,832 $ 7,848,218
=============== ============
The amounts ceded by the Company and included in the statutory statements
of income were as follows:
1996 1995 1994
Premium considerations $ 2,644,523 $ 4,369,203 $ 5,072,349
============= ============= ============
Policyholder and beneficiary benefits $ 1,306,703 $ 2,807,917 $ 2,747,245
============= ============= ============
The Company also ceded group and individual accident and health insurance
to Mutual of Omaha. The amounts ceded by the Company and included in the
statutory statements of admitted assets, liabilities and surplus were as
follows:
1996 1995
Amounts recoverable from reinsurance $ 2,556 $ 4,328
============ =========
Policy and contract claims $ 403 $ 1,560
============ ==========
Aggregate reserves for policies and contracts $ 127,823 $ 135,395
============= ==========
The amounts ceded by the Company and included in the statutory statements
of income were as follows:
1996 1995 1994
Premium considerations $ 19,029 $ 25,034 $33,657
========= ======== ========
Policyholder and beneficiary benefits $ 36,964 $ (3,386) $51,454
========= ======== ========
United World Life Insurance Company, an affiliate domiciled in the State
of Nebraska, had reinsurance funds withheld of $500,000 on deposit with
the Company at December 31, 1995.
6. REINSURANCE
In the normal course of business, the Company assumes and cedes
reinsurance. The ceding of reinsurance does not discharge an insurer from
its primary legal liability to a policyholder. The Company remains liable
to the extent that a reinsurer is unable to meet its obligations.
The reconciliation of total premiums to net premiums is as follows:
1996 1995 1994
Direct $ 93,379,787 $ 76,428,002 $ 53,458,412
Assumed 646,451 598,903 591,132
Ceded (3,846,323) (4,929,351) (5,888,099)
-------------- ----------- -----------
Net $ 90,179,915 $ 72,097,554 $ 48,161,445
============== ============ =============
7. DEPOSIT FUNDS
At December 31, 1996 and 1995, the Company held annuity reserves and
deposit fund liabilities of $92,914,171 and $93,259,277, respectively,
that were subject to discretionary withdrawal at book value with a
surrender charge of less than 5%.
8. CONTINGENT LIABILITIES
Various lawsuits have arisen in the ordinary course of the Company's
business. The Company believes that its defenses are meritorious and the
eventual outcome of those lawsuits will not have a material effect on the
Company's financial position.
9. STOCKHOLDER DIVIDENDS
Dividends to the Company's stockholder are subject to prior approval by
the Superintendent of Insurance of the State of New York.
10. BUSINESS RISKS
The Company is subject to regulation by state insurance departments and it
undergoes periodic examinations by those departments. The following is a
description of the most significant risks facing life and health insurers
and how the Company manages those risks:
Legal/Regulatory Risk is the risk that changes in the legal or
regulatory environment in which an insurer operates will occur and
create additional costs or expenses not anticipated by the insurer in
pricing its products. The Company mitigates this risk by diversifying
its line of products.
Credit Risk is the risk that issuers of securities owned by the Company
will default, or that other parties, including reinsurers which owe the
Company money, will not pay. The Company minimizes this risk by adhering
to a conservative investment strategy and by maintaining sound
reinsurance, credit and collection policies.
Interest-Rate Risk is the risk that interest rates will change and cause
a decrease in the value of an insurer's investments. The Company
mitigates this risk by attempting to match the maturity schedule of its
assets with the expected payouts of its liabilities. To the extent that
liabilities come due more quickly than assets mature, the Company may
have to sell assets prior to maturity and recognize a gain or loss.
<PAGE>
COMPANION LIFE
SEPARATE ACCOUNT C
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 1996 AND 1995
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Companion Life Insurance Company
We have audited the accompanying statement of net assets of Companion Life
Separate Account C as of December 31, 1996, and the related statements of
operations and changes in net assets for the year then ended. Our responsibility
is to express an opinion on these financial statements based on our audit. The
statement of changes in net assets of Companion Life Separate Account C for the
year ended December 31, 1995 was audited by other auditors whose report, dated
March 20, 1996, expressed an unqualified opinion. The financial statements are
the responsibility of the Company's management.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Companion Life Separate Account
C as of December 31, 1996, and the results of its operations and changes in its
net assets for the year then ended in conformity with generally accepted
accounting principles.
New York, New York
March 18, 1997
<PAGE>
<TABLE>
<CAPTION>
COMPANION LIFE SEPARATE ACCOUNT C
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Series I
--------------------------------------------------------------------------------------------
Fidelity T. Rowe Price Scudder
----------------------------- ---------------------------------------- -------------------
New Limited-
Asset Index International America Equity Term Money
ASSETS Growth Manager 500 Stock Growth Income Bond Market Bond
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments in portfolio shares,
at cost $299,799 $318,212 $62,925 $216,142 $363,586 $365,251 $46,403 $38,728 $222,951
======= ======== ======= ======== ======== ======== ======= ======= ========
Investments in portfolio shares,
at market value $324,142 $354,616 $72,545 $234,079 $399,771 $415,992 $45,640 $38,728 $225,068
------- -------- ------- -------- -------- -------- ------- ------- --------
Net assets $324,142 $354,616 $72,545 $234,079 $399,771 $415,992 $45,640 $38,728 $225,068
======= ======== ======= ======== ======== ======== ======= ======= ========
Accumulation units 20,611 28,071 4,368 19,124 22,591 25,860 4,069 35,328 19,091
======= ======== ======= ======== ======== ======== ======= ======= ========
Net asset value per unit $ 15.73 $ 12.63 $ 16.61$ $ 12.24 $ 17.70 $ 16.09 $11.22 $1.10 $ 11.79
======= ======== ======= ======== ======== ======== ======= ======= ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPANION LIFE SEPARATE ACCOUNT C
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Series I
----------------------------------------------------------------------------------------
Fidelity T. Rowe Price Scudder
----------------------------- -------------------------------------- -----------------
New Limited-
Asset Index Internationl America Equity Term Money
Growth Manager 500 Stock Growth Income Bond Market Bond
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Reinvested dividends and
capital gain distributions $5,345 $8,267 $931 $3,369 $5,455 $10,423 $2,272 $4,858 $9,292
Mortalilty risk charges and expenses
(Note 2) (3,263) (3,945) (640) (2,003) (3,444) (3,735) (551) (1,380) (1,947)
------- ------- ------ ------- ------- ------ ------ ------- ------
Net investment income 2,082 4,322 291 1,366 2,011 6,688 1,721 3,478 7,345
------- ------- ------ ------- ------- ------ ------ ------- ------
Gains (losses) on investments:
Net realized gains (losses) 1,757 995 1,006 224 2,647 2,943 (5) - (5,185)
Net unrealized gains (losses) 22,517 29,382 9,167 16,382 34,229 42,450 (971) - (38)
------- ------- ------ ------- ------- ------ ------ ------- ------
Net gains (losses)
on investments 24,274 30,377 10,173 16,606 36,876 45,393 (976) - (5,223)
------- ------- ------ ------- ------- ------ ------ ------- ------
Changes in net assets resulting
from operations $26,356 $34,699 $10,464 $17,972 $38,887 $52,081 $ 745 $ 3,478 $2,122
======= ======= ======= ======= ======= ======= ===== ======= =====
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPANION LIFE SEPARATE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
- ---------------------------------------------------------------------------------------------------------------------------------
Series I
--------------------------------------------------------------------------------------------
Fidelity T. Rowe Price Scudder
---------------------------- --------------------------------------- --------------------
New Limited-
Asset Index Internationl America Equity Term Money
1996 Growth Manager 500 Stock Growth Income Bond Market Bond
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (expense) $2,082 $4,322 $291 $1,366 $2,011 $6,688 $1,721 $3,478 $7,345
Net realized gains (losses) 1,757 995 1,006 224 2,647 2,943 (5) - (5,185)
Net change in unrealized gains
(losses) 22,517 29,382 9,167 16,382 34,229 42,450 (971) - (38)
------ ------- ------ ------ ------ ------ ------- ----- -------
26,356 34,699 10,464 17,972 38,887 52,081 745 3,478 2,122
------ ------- ------ ------ ------ ------ ------- ----- -------
From policyowner transactions:
Policy purchases 257,088 202,957 66,722 166,755 321,426 217,616 11,608 181,500 265,960
Policy withdrawals (17,123) (9,025) (10,063) (179) (38,560) (15,916) (3) (148,621) (123,284)
-------- ------- ------- -------- -------- ------- -------- --------- --------
239,965 193,932 56,659 166,576 282,866 201,700 11,605 32,879 142,676
-------- ------- ------- -------- -------- ------- -------- --------- --------
Increase in net assets 266,321 228,631 67,123 184,548 321,753 253,781 12,350 36,357 144,798
Net assets, beginning of year 57,821 125,985 5,422 49,531 78,018 162,211 33,290 2,371 80,270
-------- ------- ------- -------- -------- ------- -------- --------- --------
Net assets, end of year $324,142 $354,616 $72,545 $234,079 $399,771 $415,992 $ 45,640 $ 38,728 $225,068
======= ======== ======= ======== ======== ======== ======== ========= ========
Accumulation unit purchases 17,666 17,636 4,681 14,566 19,524 15,044 1,047 169,328 22,895
Accumulation unit withdrawals (1,213) (833) (708) (15) (2,164) (1,071) - (136,260) (10,706)
-------- ------- ------- -------- -------- ------- -------- --------- --------
Net increase in units outstanding 16,453 16,803 3,973 14,551 17,360 13,973 1,047 33,068 12,189
Units outstanding, beginning of year 4,158 11,268 395 4,573 5,231 11,887 3,022 2,260 6,902
-------- ------- ------- -------- -------- ------- -------- --------- --------
Units outstanding, end of year 20,611 28,071 4,368 19,124 22,591 25,860 4,069 35,328 19,091
======= ======== ======= ======== ======== ======== ======== ========= ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPANION LIFE SEPARATE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995 (Continued)
- -------------------------------------------------------------------------------------------------------------------------------
Series I
------------------------------------------------------------------------------------------
Fidelity T. Rowe Price Scudder
---------------------------- -------------------------------------- --------------------
New Limited-
Asset Index Internationl America Equity Term Money
1995 Growth Manager 500 Stock Growth Income Bond Market Bond
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (expense) $(169) $(483) $(24) $(202) $(202) $1,223 $176 $1,353 $511
Net realized gains (losses) 36 249 5 612 3,781 150 1 - 317
Net change in unrealized gains
(losses) 1,826 7,022 453 1,555 1,956 8,291 208 - 2,155
----- ------ ---- ----- ----- ----- ---- ----- ------
1,693 6,788 434 1,965 5,535 9,664 385 1,353 2,983
----- ------ ---- ----- ----- ----- ---- ----- ------
From policyowner transactions:
Policy purchases 56,128 128,308 4,988 78,188 125,644 156,068 32,905 102,360 120,902
Policy withdrawals - (9,111) - (30,622) (53,161) (3,521) - (101,342) (43,615)
----- ------ ---- ----- ----- ----- ---- ----- ------
56,128 119,197 4,988 47,566 72,483 152,547 32,905 1,018 77,287
----- ------ ---- ----- ----- ----- ---- ----- ------
Increase in net assets 57,821 125,985 5,422 49,531 78,018 162,211 33,290 2,371 80,270
Net assets, beginning of year - - - - - - - - -
----- ------ ---- ----- ----- ----- ---- ----- ------
Net assets, end of year $57,821 $125,985 $ 5,422 $49,531 $78,018 $162,211 $33,290 $ 2,371 $80,270
======= ======== ======= ======= ======= ======== ======= ======= =======
Accumulation unit purchases 4,158 12,146 395 7,493 8,880 12,180 3,022 98,650 10,788
Accumulation unit withdrawals - (878) - (2,920) (3,649) (293) - (96,390) (3,886)
----- ------ ---- ----- ----- ----- ---- ----- ------
Net increase in units outstanding 4,158 11,268 395 4,573 5,231 11,887 3,022 2,260 6,902
Units outstanding, beginning of year - - - - - - - - -
----- ------ ---- ----- ----- ----- ---- ----- ------
Units outstanding, end of year 4,158 11,268 395 4,573 5,231 11,887 3,022 2,260 6,902
======= ======== ======= ======= ======= ======== ======= ======= =======
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
COMPANION LIFE SEPARATE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
- -------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Companion Life Separate Account C (the Separate Account) was established by
Companion Life Insurance Company (Companion) on February 18, 1994, under
the laws of the State of New York, and is registered as a unit investment
trust under the Investment Company Act of 1940, as amended. The Separate
Account is a segregated investment account of Companion. It is divided into
subaccounts, each of which invests exclusively in shares of a corresponding
mutual fund portfolio. The available portfolios are:
SERIES I
FIDELITY T. ROWE PRICE
VIP Growth International Stock
VIP II Asset Manager New America Growth
VIP II Index 500 Equity Income
Limited-Term Bond
SCUDDER
Money Market
Bond
Companion received the proper approvals and began selling a Series V
product in January, 1997.
SECURITY VALUATION AND RELATED INVESTMENT INCOME - The market value of
investments is based on year end closing bid prices. Investment
transactions are accounted for on the trade date (date the order to buy or
sell is executed) and dividend income is recorded on the ex-dividend date.
FEDERAL INCOME TAXES - Operations of the Separate Account are part of, and
are taxed with, the operations of Companion, which is taxed as a "life
insurance company" under the Internal Revenue Code.
RECLASSIFICATIONS - Certain reclassifications have been made to prior year
amounts to conform with current year presentation.
2. ACCOUNT CHARGES
Companion deducts a daily charge as compensation for the mortality and
expense risks assumed by Companion. The charge is equal on an annual basis
to 1.25% of the average daily net assets of each subaccount. Companion
guarantees that the mortality and expense charges shall not increase.
Companion may incur premium taxes relating to the policies. Companion will
deduct a charge for any premium taxes related to a particular policy at the
time of purchase payments, upon surrender, upon death of any owner, or at
the annuity start date.
No charges are currently deducted from the Separate Account for federal or
state income taxes, since none are currently imposed. Should such taxes be
imposed in the future, Companion may make deductions from the Separate
Account to pay such taxes.
Companion deducts a daily administrative expense charge from the net assets
of the Separate Account. The nominal annual rate is .15% of the net asset
value of each subaccount. There is also an annual policy fee of $30 that is
deducted from the accumulation value on the last valuation date of each
policy year or at complete surrender. The annual policy fee is waived if
the accumulation value is greater than $50,000 on the last valuation date
of the applicable policy year. Neither expense charge shall increase.
A withdrawal charge will be assessed on withdrawals in excess of 10% of the
participant's accumulation value as of the last contract anniversary
preceding the request for the withdrawal. The amount of the charge will
depend upon the period of time elapsed since the purchase payment
(first-in, first-out arrangement) was made, as follows:
CHARGE ON WITHDRAWAL
EXCEEDING
PURCHASE PAYMENT YEAR ALLOWABLE AMOUNT
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
There is no charge for the first 12 transfers between subaccounts of the
Separate Account in each policy year. However, there is a $10 fee for the
13th and each subsequent request during a single policy year. Any
applicable transfer fee is deducted from the amount transferred. All
transfer requests made simultaneously will be treated as a single request.
No transfer fee will be imposed for any transfer which is not at the
policyowner's request. The transfer fee will not increase.
3. NET ASSETS
Total net assets (policyowners' cumulative investment accounts) consist
of the following at December 31, 1996:
<TABLE>
<CAPTION>
Series I
---------------------------------------------------------------------------------------------------
Fidelity T. Rowe Price Scudder
------------------------------- -------------------------------------------- ---------------------
New Limited-
Asset Index International America Equity Term Money
Growth Manager 500 Stock Growth Income Bond Market Bond
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased $313,216 $331,265 $71,710 $244,943 $447,070 $373,684 $44,513 $283,860 $386,862
Shares sold (20,555) (22,564) (10,727) (33,006) (95,367) (23,595) (602) (251,828) (169,114)
Reinvested dividends and
capital gain distributions 5,345 8,267 931 3,369 5,455 12,069 2,496 6,696 10,071
Net realized gains (losses) 1,793 1,244 1,011 836 6,428 3,093 (4) - (4,868)
Change in unrealized gains (losses)24,343 36,404 9,620 17,937 36,185 50,741 (763) - 2,117
------ ------- ------- ------- ------- ------- ------ -------- --------
Net assets $324,142 $354,616 $72,545 $234,079 $399,771 $415,992 $45,640 $38,728 $225,068
======== ======== ======= ========= ======== ======== ======= ======== =========
</TABLE>
Gross unrealized gains on investments aggregated $177,347 and $23,466 at
December 31, 1996 and 1995, respectively, and gross unrealized losses on
investments aggregated $763 at December 31, 1996.
<PAGE>
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
All required financial statements are included in Part B of this
Registration Statement.
(b) Exhibits: The following exhibits are filed herewith:
Exhibit No. Description of Exhibit
- ------------ ----------------------
(1) (a) Resolution of the Board of Directors establishing the Variable
Account.
(2) Not applicable.
(3) (a) Principal Underwriter Agreement by and between United, on
its own behalf and on behalf of the Variable Account, and Mutual
of Omaha Investor Services.
(b) Form of Broker/Dealer Supervision and Sales Agreement by and
between Mutual of Omaha Investor Services, Inc. and the Broker
/Dealer. Note 1
(4) (a) Form of Policy for the SERIES V variable annuity Policy. Note 2
(b) Form of Riders to the Policy. Note 2
(5) Form of Application to the Policy. Note 2
(6) (a) Articles of Incorporation of United of Omaha Life Insurance
Company.
(b) Bylaws of United of Omaha Life Insurance Company.
(7) Not applicable.
(8) (a) Participation Agreement with the Alger American Fund. Note 1
(b) Participation Agreement with the Insurance Management Series.
Note 1
(c) Participation Agreement with the Fidelity VIP Fund and Fidelity
VIP Fund II. Note 1
(d) Participation Agreement with the MFS Variable Insurance Trust.
Note 1
(e) Participation Agreement with the Pioneer Variable Contracts
Trust. Note 1
(f) Participation Agreement with the Scudder Variable Life Investment
Fund. Note 1
(g) Participation Agreement with T. Rowe Price International Series,
T.Rowe Price Fixed Income Series, and T.Rowe Price Equity Series.
Note 1
(h) Administrative Services Agreement with Vantage Computer Systems.
Note 1
(9) Opinion and Consent of Counsel.
(10) Consents of Independent Auditors
(11) Not applicable.
(12) Not applicable.
(13) Schedules of Computation of Performance Data.
(14) Powers of Attorney.
Note 1: Incorporated by Reference to the Post-Effective Amendment to the
Registration Statement for United of Omaha Separate Account C filed on April 24,
1997 (File No. 33-89848).
Note 2: Incorporated by Reference to the Pre-Effective Amendment to the
Registration Statement for Companion Life Separate Account C filed on November
1, 1996 (File No. 33-98062).
Item 25. Directors and Officers of the Depositor
Principal Positions
Name and and Offices with
Business Address5/ Depositor
- ------------------ ----------------------
Thomas J. Skutt Chairman
Ernest B. Johnston Vice-Chairman, President & Chief Executive Officer
John W. Weekly Vice-Chairman
William G. Campbell Director
Samuel L. Foggie Director
M. Jane Huerter Director, Vice President & Assistant Secretary
Charles T. Locke III Director
John L. Maginn Director, Vice President & Assistant Treasurer
Thomas T. Sawicz Director
Oscar S. Straus Director
John A. Sturgeon Director
Daniel R. Varona Director
Fred C. Boddy Vice President & Treasurer
Item 26. Persons Controlled by or Under Common Control with the Depositor
or Registrant
<TABLE>
<CAPTION>
Name of Corporation (where organized) Type of Corporation
<S> <C>
Mutual of Omaha Insurance Company (NE) Accident & Health Insurance
KFS Corporation (NE) Holding corporation
Kirkpatrick, Pettis, Smith, Polian Inc. (NE) Registered broker-dealer & investment advisor
KPM Investment Management, Inc. (NE) Investment advisor
Kirkpatrick Pettis Trust Company (NE) Trust company
Mutual of Omaha Health Plans, Inc. (NE) Holding corporation
Exclusive Healthcare, Inc. (NE) HMO
Mutual of Omaha of Colorado, Inc. (CO) (50%) HMO
Mutual of Omaha Health Plans of Lincoln, Inc.(NE) Staff Model HMO
Preferred Health Alliance, Inc. (NE) (51%) Joint venture w/physician & hospital
organization
Mutual of Omaha Dental Plans of Nebraska, Inc. (NE) Limited pre-paid DHMO
Mutual of Omaha Dental Plans of Nevada, Inc. (NV) Limited pre-paid DHMO
Mutual of Omaha Health Plans of Indiana, Inc. (IN) HMO
Mutual of Omaha Health Plans of Ohio, Inc. (OH) HMO
Mutual of Omaha of South Dakota & Community Health
Plus HMO, Inc. (SD) HMO
Mutual of Omaha Tri-State Health Plans, Inc. (TN) HMO
Mutual of Omaha Holdings, Inc. (NE) Holding corporation
Mutual Asset Management Co. (NE) Asset management services
Mutual of Omaha Investor Services, Inc. (NE) Registered securities Broker-Dealer
Mutual of Omaha Marketing Corporation (NE) Markets health insurance
Omex Realty, Inc. (NE) Real estate investments
TWCO, Inc. (NE) Markets water purification products
UB Realty, Inc. (NE) Real estate investments
Mutual of Omaha U.K. Limited (U.K.) Insurance in United Kingdom (inactive)
The Omaha Indemnity Company (WI) Property & casualty insurance (no new business
since 1986)
Omaha Property and Casualty Insurance Company (NE) Property & casualty insurance
Adjustment Services, Inc. (NE) Claims adjusting services
Tele-Trip Company, Inc. (DE) Markets travel/flight insurance in airports
United of Omaha Life Insurance Company (NE) Life, H&A insurance/annuities
Companion Life Insurance Company (NY) Life insurance/annuities
Mutual of Omaha Structured Settlement Company, Inc. (CT) Structured settlements
Mutual of Omaha Structure Settlement Company of
New York, Inc. (NY) Structured settlements
United World Life Insurance Company (NE) Accident & health and life insurance
United Properties Co. (CA) (50%) Real estate general partnership
*Subsidiaries of subsidiaries are indicated by indentations.
</TABLE>
Item 27. Number of Policyowners
As of December 31, 1996, there were 628 Owners of the Policies.
Item 28. Indemnification
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of Companion pursuant to the foregoing provisions, or otherwise,
Companion 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 Companion of expenses
incurred or paid by a director, officer or controlling person in connection with
the securities being registered), Companion 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. With respect to indemnification, Article V, Section
8 of Companion's Bylaws provides as follows:
The Corporation shall indemnify any person, made, or threatened
to be made, a party to any action or proceeding other than one by or in the
right of the Corporation to procure a judgment in its favor, whether civil or
criminal, which any officer of the Corporation served in any capacity at the
request of the Corporation, by reason of the fact that he, his testator or
intestate, was an officer of the Corporation, against judgments, fines, amounts
paid in settlement and reasonable expenses, including attorneys' fees actually
and necessarily incurred as a result of such action or proceeding, or any appeal
therein, if such officer acted, in good faith, for a purpose which he is
reasonably believed to be in the best interests of the Corporation and, in
criminal actions or proceedings, in addition, had no reasonable cause to believe
that his conduct was unlawful.. The termination of any such civil or criminal
action proceeding by judgment, settlement, conviction or upon a plea of nolo
contendere, or its equivalent, shall not in itself create a presumption that any
such officer did not act, in good faith, for a purpose which he is reasonably
believed to be in the best interests of the Corporation or that he had
reasonable cause to believe that his conduct was unlawful.
Item 29. Principal Underwriter
(a) In addition to Registrant, Mutual of Omaha Investor Services, Inc. is
the Principal Underwriter for policies offered by Companion Life Insurance
Company through Companion Life Separate Account C.
(b) The directors and officers of Mutual of Omaha Investor Services, Inc.
(principal address: Mutual of Omaha Plaza, Omaha, Nebraska 68175) are as
follows:
NAME TITLE
Richard A. Witt President, Director
William J. Bluvas Vice President, Finance and Treasurer
M. Jane Huerter Secretary and Director
Scott C. Hoyt Assistant Secretary
Michael F. Gentile Vice President, Operations
Linda K. Augustyn Vice President, Investor Relations and Communications
Lawrence F. Harr Director
John L. Maginn Director
Thomas T. Sawicz Director
John W. Weekly Chairman, Director
(c) Mutual of Omaha Investor Services, Inc. ("MOIS") is the
principal underwriter of the Policies. Commissions payable to a broker-dealer
will be up to 7% of Purchase Payments. For the fiscal year ended December 31,
1996, United of Omaha paid $0 in total compensation to MOIS; of this amount MOIS
retained $0 as concessions for its services as Principal Underwriter and for
distribution concessions, with the remaining amount paid to other
broker-dealers. (Sales did not begin until 1997.)
Item 30. Location of Accounts and Records
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder,
are maintained by Companion Life Insurance Company at Mutual of Omaha Plaza,
Omaha, Nebraska 68175.
Item 31. Management Services.
All management policies are discussed in Part A or Part B of this
registration statement.
Item 32. Undertakings
(a)Registrant undertakes that it will file a post-effective
amendment to this registration statement as frequently as necessary to ensure
that the audited financial statements in the registration statement are never
more than 16 months old for so long as Purchase Payments under the Policy may be
accepted.
(b)Registrant undertakes that it will include either (i) a postcard
or similar written communication affixed to or included in the Prospectus that
the applicant can remove to send for a Statement of Additional Information or
(ii) a space in the Policy application that an applicant can check to request a
Statement of Additional Information.
(c)Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form promptly upon written or oral request to Companion at the address or
phone number listed in the Prospectus.
(d)Companion Life Insurance Company hereby represents that the fees
and charges deducted under the Policy, in the aggregate, are reasonable in
relation to the services rendered, the expenses expected to be incurred, and the
risks assumed by Companion Life Insurance Company.
5/ Business address is Mutual of Omaha Insurance Company, Mutual of Omaha Plaza,
Omaha, Nebraska 68175.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant certifies that it meets all of the requirements for the
effectiveness of this Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1993 and has caused this Post-effective Amendment No. 1 to the
Registration Statement to be signed on its behalf, in the City of Omaha and
State of Nebraska, on this 23rd day of April, 1997.
COMPANION SEPARATE ACCOUNT C
COMPANION LIFE INSURANCE COMPANY
Depositor
/s/Kenneth W. Reitz
---------------------------------------
By: Kenneth W. Reitz
Assistant Secretary
As required by the Securities Act of 1933, this Post-effective amendment
No. Registration Statement has been signed by the following persons on April 23,
1997 in the capacities and on the duties indicated.
Signatures Title
/s/ Ernest B. Johnston by Kenneth W. Reitz*
- -----------------------
Ernest B. Johnston Vice-Chairman, President and Chief Executive Officer
/s/ Fred C. Boddy by Kenneth W. Reitz*
- ------------------------
Fred C. Boddy Vice President and Treasurer (Principal Financial Officer)
/s/ John C. Gribbon by Kenneth W. Reitz*
- ------------------------
John C. Gribbon Assistant Vice President (Principal Accounting Officer)
/s/ Kenneth W. Reitz
by __________________________________, for and on behalf of:
Kenneth W. Reitz
Thomas J. Skutt* Chairman
John W. Weekly* Vice-Chairman
William G. Campbell* Director
Samuel L. Foggie* Director
M. Jane Huerter* Director
Charles T. Locke* Director
John L. Maginn* Director
Oscar S. Straus* Director
John A. Sturgeon* Director
Daniel R. Varona Director
* All individuals have granted Powers of Attorney executed on and between July
13 and August 1, 1995 whereby Kenneth W. Reitz is authorized to execute this
Registration Statement on their behalf.
- --------------------------------------------------------------------------------
EXHIBIT (1) (A): RESOLUTION OF THE BOARD OF DIRECTORS ESTABLISHING THE VARIABLE
ACCOUNT
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS' RESOLUTIONS
COMPANION LIFE INSURANCE COMPANY
BE IT RESOLVED, That the Board of Directors of Companion Life Insurance
Company (the "Company") hereby establishes separate accounts, pursuant
to New York Insurance Laws, Chapter 28, Section 4240, and any other
applicable statute and the regulations thereunder, designated "Companion
Separate Account B" and "Companion Separate Account C" (hereinafter
"Variable Accounts") for the following use and purposes, and subject to
such conditions as hereinafter set forth: and
FURTHER RESOLVED, That the Variable Accounts are established for the
purpose of providing for the issuance by the Company of certain variable
annuity insurance contracts ("Contracts"), and shall constitute a
funding medium to support reserves under such Contracts; and
FURTHER RESOLVED, That the Variable Accounts shall not be chargeable
with any liabilities arising out of any other separate investment
account or any other business of the Company which has no specific and
determinable relation to or dependence upon the Variable Accounts, and
FURTHER RESOLVED, That any surplus or deficit which may arise in the
Variable Accounts by virtue of mortality experience guaranteed by the
Company or by expense costs shall be adjusted by withdrawals from or
additions to the Variable Accounts so that the assets of the Variable
Accounts equal the liabilities; and
FURTHER RESOLVED, That the income, gains and losses, realized or
unrealized, from assets allocated to the Variable Accounts shall be
credited to or charged against the Variable Accounts without regard to
other income, gains, or losses of the Company; and
FURTHER RESOLVED, That the Variable Accounts shall be divided into
investment subaccounts, each investment subaccount in the Variable
Accounts shall invest in the shares of a mutual fund portfolio or other
investment medium designated on the schedule page of the Contract, and
net premiums under the Contracts shall be allocated to the eligible
portfolios in accordance with instructions received from owners of the
Contracts; and
FURTHER RESOLVED, That the income, gains and losses, realized or
unrealized, from assets allocated to an investment subaccount shall be
credited to or charged against that investment subaccount, without
regard to other income, gains, or losses of any other investment
subaccount; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized to add or remove any investment
subaccount of the Variable Accounts and to substitute a designated
mutual fund or other investment medium for another as they may hereafter
deem necessary, advisable, or appropriate; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized to invest such amounts of the
Company's cash in the Variable Accounts or in any investment subaccount
thereof as may be deemed necessary, advisable, or appropriate to
facilitate the commencement of the Variable Account's operations and/or
to meet any minimum capital requirements under the Investment Company
Act of 1940 (the "1940 Act"); and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized to transfer cash from time to time
between the Company's general account and the Variable Accounts as
deemed necessary, advisable, or appropriate and consistent with the
terms of the Contracts; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, authorized to change the designation of the Variable
Accounts hereafter to such other designation as they may deem necessary,
advisable, or appropriate; and
FURTHER RESOLVED, That the appropriate officers of the Company, with
such assistance from the Company's independent certified public
accountants, legal counsel and independent consultants or others as they
may require or deem appropriate, be, and they hereby are, severally
authorized and directed to take all action necessary, advisable, or
appropriate to: (a) register the Variable Accounts as unit investment
trusts under the 1940 Act; (b) register the Contracts in such amounts,
which may be indefinite amounts, as such officers of the Company shall
from time to time deem appropriate under the Securities Act of 1933 (the
"1933 Act"); and (c) take all other actions which are necessary,
advisable, or appropriate in connection with the offering of the
Contracts for sale and the operation of the Variable Accounts in order
to comply with the 1940 Act, the Securities Exchange Act of 1934, the
1933 Act, and other applicable federal laws, including the filing of any
amendments to registration statements, any periodic reports, any
undertakings, any no-action requests, and any applications (and any
amendments thereto) for exemptions from the 1940 Act or other applicable
federal laws as the appropriate officers of the Company shall deem
necessary, advisable, or appropriate; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized and empowered to prepare, execute
and cause to be filed with the Securities and Exchange Commission
("SEC") on behalf of the Variable Accounts, and by the Company as
sponsor and depositor, Registration Statements on Form N-4 registering
the Variable Accounts as investment companies under the 1940 Act and the
Contracts under the 1933 Act, and any and all amendments to the
foregoing on behalf of the Variable Accounts and the Company and on
behalf of and as attorneys-in-fact for the principal executive officer
and/or the principal financial officer and/or the principal accounting
officer and/or any other officer or director of the Company; and
FURTHER RESOLVED, That Daniel Varona is the Secretary and General
Counsel of the Company, is duly appointed as agent for service under any
such registration statement, duly authorized to receive communications
and notices from the SEC with respect thereto; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized on behalf of the Variable Accounts
and on behalf of the Company to take any and all action that each of
them may deem necessary, advisable, or appropriate in order to offer and
sell the Contracts, including any registrations, filings and
qualifications both of the Company, its officers, agents and employers,
and of the Contracts, under the insurance and securities laws of any of
the states of the United States of America or other jurisdictions, and
in connection therewith to prepare, execute, deliver and file all such
applications, reports, covenants, resolutions, applications for
exemptions (and amendments thereto), consents to service of process and
other papers and instruments as may be required under such laws, and to
take any and all further action which such officers or legal counsel of
the Company may deem necessary, desirable, or appropriate (including
entering into whatever agreements and contracts may be necessary,
desirable, or appropriate) in order to maintain such registrations or
qualifications for as long as the appropriate officers or legal counsel
deem it to be in the best interests of the Variable Accounts and the
Company; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized to expend such monies as may be
advisable or appropriate with respect to the following:
(a) for the procurement of banking, custodial, consulting,
administrative, actuarial, accounting, legal or other such
services as the appropriate officers of the Company may
deem necessary, desirable or appropriate to carry out the
purposes of these Resolutions; (b) for the marketing and
distribution of Contracts; and (c) to provide whatever
capital is deemed necessary, advisable, or appropriate to
establish and maintain the Variable Accounts during its
initial period of operation; and
FURTHER RESOLVED, That the form of any resolutions required by any state
authority to be filed in connection with any of the documents or
instruments referred to in any of the preceding resolutions be, and the
same hereby are, adopted as if fully set forth herein if; (i) in the
opinion of the appropriate officers of the Company, the adoption of the
resolutions is advisable; and (ii) the Secretary or any Assistant
Secretary of the Company evidences such adoption by inserting into these
minutes copies of such resolutions; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized in the names and on behalf of the
Variable Accounts and the Company to execute and file irrevocable
written consents to service of process on the part of the Variable
Accounts and of the Company to be used in such jurisdictions wherein
such consents may be required under the insurance or securities laws
therein in connection with the registration or qualification of the
Variable Accounts and/or the Contracts and to appoint the appropriate
jurisdiction official, or such other person as may be allowed by
insurance or securities laws, agent of the Variable Accounts and of the
Company for the purpose of receiving and accepting process; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized to establish procedures under
which the Company will provide voting rights for owners of the Contracts
with respect to securities owned by the Variable Accounts, and
FURTHER RESOLVED, That the appropriate officers of the Company be, and
they hereby are, severally authorized to execute such agreement or
agreements as deemed necessary, advisable, or appropriate (i) with one
or more broker dealers or other qualified entities under which such
entities will act as distributor(s) for the Contracts, (ii) with one or
more qualified banks or other qualified entities to provide
administrative and/or custody services in connection with the
establishment and maintenance of the Variable Accounts and the design,
issuance, and administration of the Contracts, and (iii) with the
designated mutual funds or other investment media and/or the principal
underwriter and distributor of those funds or media for the purchase and
redemption of shares; and
FURTHER RESOLVED, That the appropriate officers of the Company be, and they
hereby are, severally authorized to execute and deliver such agreements and
other documents and do such acts and things as each of them may deem necessary,
desirable or appropriate to carry out the foregoing resolutions and the intent
and purposes thereof.
EXHIBIT (3) (A): PRINCIPAL UNDERWRITER AGREEMENT
PRINCIPAL UNDERWRITING AGREEMENT
COMPANION SEPARATE ACCOUNT C
PRINCIPAL UNDERWRITING AGREEMENT effective _______, 1995, by and between
COMPANION LIFE INSURANCE COMPANY ("COMPANION") on its own behalf and on behalf
of COMPANION SEPARATE ACCOUNT C ("ACCOUNT") and MUTUAL OF OMAHA INVESTOR
SERVICES, INC. ("UNDERWRITER").
WHEREAS:
o The ACCOUNT was established under authority of a resolution of COMPANION's
Board of Directors on February 18, 1994, in order to set aside and invest
assets attributable to certain variable annuity contracts ("Contracts")
issued by COMPANION;
o COMPANION has registered the ACCOUNT as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act") and has registered the
Contracts under the Securities Act of 1933;
o UNDERWRITER is registered as a broker-dealer with the Securities and the
Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as
amended (the "1934 Act"), and is a member in good standing of the National
Association of Securities Dealers, Inc. ("NASD");
o COMPANION and the ACCOUNT desire to have the Contract sold and distributed
through UNDERWRITER and UNDERWRITER is willing to sell and distribute such
Contracts under the terms stated herein; and
o UNDERWRITER desires to have COMPANION perform certain services in
connection with the sale of the Contracts;
NOW, THEREFORE, the parties agree as follows:
A. UNDERWRITER APPOINTMENT. COMPANION appoints UNDERWRITER, and UNDERWRITER
agrees to serve as, distributor and principal underwriter of the Contracts
during the term of this Agreement. UNDERWRITER will be under no obligation
to effectuate any particular amount of sales of Contracts or to promote or
to make sales, except to the extent that COMPANION deems advisable.
UNDERWRITER shall be responsible for carrying out its sales and
underwriting obligations hereunder in continued compliance with the NASD
Rules of Fair Practice and federal and state securities laws.
B. RETAIL BROKER-DEALER AGREEMENTS
B.1. COMPANION authorizes UNDERWRITER to enter into separate written
agreements, on terms and conditions UNDERWRITER determines are not
inconsistent with this Agreement, with independent broker-dealers who
are registered as such under the 1934 Act and are members of the NASD,
and who agree to participate in the distribution of the Contracts and
to use their best efforts to solicit applications for the Contracts.
UNDERWRITER and COMPANION may also enter into consulting and/or
wholesale agreements with other distributors to obtain assistance in
locating independent broker-dealers who are willing to enter into
retail broker-dealer agreements for the sale of Contracts.
B.2. Each retail broker-dealer agreement shall require that each retail
broker-dealer shall be responsible for carrying out its sales
obligations hereunder in compliance with the NASD Rules of Fair
Practice and federal and state securities laws, and specifically shall
be fully responsible for:
(a) ensuring that no person shall offer or sell the Contracts on the
retail broker-dealer's behalf until such person is duly
registered as a representative of such retail broker-dealer, duly
appointed by COMPANION, and appropriately licensed, registered or
otherwise qualified to offer and sell such Contracts under the
federal securities laws and any applicable securities laws of
each state or other jurisdiction in which such Contracts may be
lawfully sold, in which COMPANION is licensed to sell the
Contracts and in which such person shall offer or sell the
Contracts (such persons hereinafter referred to as
"Representatives"); and
(b) training, supervising, and controlling of all such persons for
purposes of complying on a continuous basis with the NASD Rules
of Fair Practice and with federal and state securities law
requirements applicable in connection with the offering and sale
of the Contracts. In this connection, the retail broker-dealer
shall:
(1) conducts its training (including the preparation and
utilization of training materials) as in the opinion of
UNDERWRITER is necessary to accomplish the purposes of this
Agreement;
(2) establish and implement reasonable written procedures for
supervision of sales practices of agents, representatives or
brokers selling the Contracts; and
(3) take reasonable steps to ensure that its associated persons
shall not make recommendations to an applicant to purchase a
contract and shall not sell a Contract in the absence of
reasonable grounds to believe that the purchase of the
Contract is suitable for such applicant. Without limiting
any of the following, a determination of suitability shall
be based upon information furnished after reasonable inquiry
of the applicant concerning the applicant's insurance and
investment objectives, financial situation and needs, and
the likelihood of whether the applicant will persist with
the Contact for such a period of time that COMPANION's
acquisition costs are amortized over a reasonable period of
time. COMPANION and UNDERWRITER will rely on the signature
of a principal of the retail broker-dealer as evidence that
the broker-dealer has made a reasonable determination of
suitability.
B.3. Each retail broker-dealer shall provide that the only information or
representations made concerning the Contracts are those contained in
the Registration Statement and prospectus filed with the SEC or are
contained in sales or promotional material approved by COMPANION and
UNDERWRITER.
B.4. Applications for Contracts solicited by retail broker-dealers through
their Representatives shall be forwarded to COMPANION. All payment for
Contracts shall be remitted promptly to COMPANION as agent for
UNDERWRITER.
B.5. Each broker-dealer who agrees to participate in the distribution of
the Contracts shall act as an independent contractor and nothing
herein shall constitute such broker-dealer or its agents or employees
as employees of UNDERWRITER or COMPANION in connection with the sale
of Contracts.
B.6. COMPANION shall apply for the proper insurance licenses in the
appropriate states or jurisdictions for the Representatives associated
with UNDERWRITER or with other independent retail broker-dealers which
have entered into agreements with UNDERWRITER for the sale of
Contracts, provided that COMPANION reserves the right to refuse to
appoint any proposed Representative as an agent or broker, or to
terminate a Representative once appointed.
C. PROSPECTUSES AND PROMOTIONAL MATERIAL.
C.1. COMPANION shall furnish UNDERWRITER with copies of all prospectuses,
financial statements and other documents and materials which
UNDERWRITER reasonably requests for use in connection with the
distribution of Contracts. COMPANION shall have responsibility for the
preparation, filing and printing of all required prospectuses and/or
registration statements in connection with the marketing or sales of
the Contracts, and the payment of all related expenses. UNDERWRITER
will, at COMPANION's sole expense, execute such papers and do such
acts and things that shall from time to time be reasonably requested
by COMPANION for the purpose of maintaining the registration of the
Contracts under the 1933 Act and the Account under the 1940 Act, and
qualifying and maintaining qualification of the Contracts for sale
under the applicable laws of any state.
C.2. UNDERWRITER and COMPANION shall cooperate fully in designing, drafting
and reviewing of sales promotion materials. UNDERWRITER shall only use
such materials that have been provided or approved by COMPANION.
UNDERWRITER will make timely filings with the SEC, NASD and any other
securities regulatory authorities of any sales literature or materials
relating to the Account as required by law to be filed.
C.3. COMPANION, on behalf of UNDERWRITER, will make timely filings with
those state securities regulatory authorities of any information
related to the Contracts as required by such state's Blue Sky laws in
order to qualify and maintain qualification of the Contracts for sale
in such state.
D. REPRESENTATIVES RECORDS. COMPANION, on behalf of UNDERWRITER, shall have
the responsibility for maintaining the records of Representatives licensed,
registered or otherwise qualified to sell the Contracts.
E. OTHER RECORDS. COMPANION agrees to maintain all required books of account
and related financial records on behalf of UNDERWRITER. All such books of
account and records shall be maintained and preserved pursuant to 1934 Act
Rules 17a-3 and 17a-4 (or the corresponding provisions of any future
federal securities laws or regulations). All such books and records shall
be maintained by COMPANION on behalf of and as agent for UNDERWRITER whose
property they are and shall remain for all purposes and shall at all times
be subject to reasonable periodic, special or other examination by the SEC
and all other regulatory bodies having jurisdiction. COMPANION also agrees
to send to UNDERWRITER's customers all required confirmations of customer
transactions.
F. COMPENSATION.
F.1. As compensation for UNDERWRITER's assuming its distribution expenses
and performing the services to be assumed and performed by it pursuant
to this Agreement, UNDERWRITER shall receive from COMPANION such
amounts and at such times as may from time to time be agreed upon in
writing by UNDERWRITER and COMPANION.
F.2. COMPANION will, on behalf of UNDERWRITER and on its account, in
connection with the sale of the Contracts, pay all amounts (including
the sales commissions described in the Prospectus for the Contracts)
due to Representatives or to those broker-dealers who have entered
into a standard form Retail Broker-Dealer Agreement with UNDERWRITER
and COMPANION, and UNDERWRITER shall have no interest whatsoever in,
nor any obligation, to pay such accounts.
F.3. As compensation for its services performed and expenses incurred under
this Agreement, COMPANION will receive all amounts charged as sales
charges under the Contracts. It is understood that COMPANION assumes
the risk that the above compensation for its services may not prove
sufficient to cover its actual expenses in connection therewith.
G. INVESTIGATION AND PROCEEDINGS. UNDERWRITER and COMPANION agree to cooperate
fully in any customer complaint, insurance regulatory investigation or
proceeding or judicial proceeding arising in connection with the Contracts
distributed under this Agreement. UNDERWRITER and COMPANION further agree
to cooperate fully in any securities regulatory inspection, inquiry,
investigation or proceeding or any judicial proceeding with respect to
UNDERWRITER, COMPANION, their affiliates and their Representatives to the
extent that such inspection, inquiry, investigation or proceeding is in
connection with Contracts distributed under this Agreement. Such
cooperation shall include prompt notification to the other party of any
customer complaint or notice of any regulatory inspection, inquiry,
investigation or proceeding received in connection with any activity in
connection with any such Contract.
H. INDEMNIFICATION.
H.1. COMPANION and UNDERWRITER each, as the indemnifying party, agree to
indemnify and hold harmless, as the indemnified party, the other and
the other's directors and officers against any and all losses, claims,
damages, liabilities (including amounts paid in settlement by the
indemnified party with the written consent of the indemnifying party)
or litigation (including reasonable legal expenses and expenses of
counsel chosen by the indemnified party and consented to by the
indemnifying party which consent shall not be unreasonably withheld
and other reasonable expenses), to which the indemnified party may
become subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements are related
directly or indirectly to the sale or distribution of the Contracts
and:
(a) arise out of or are based upon any untrue statements or alleged
untrue statements of any material fact contained in the
Registration Statement, Prospectus, Contracts or sales literature
for the Contracts (or any amendment or supplement to any of the
foregoing), for which the indemnifying party is responsible or
arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated
therein, or necessary to make the statements therein not
misleading, provided that this agreement to indemnify shall not
apply if such statement or omission or such alleged statement or
omission was made in reliance upon and in conformity with
information furnished to the indemnifying party by the
indemnified party for use in the Registration Statement,
Prospectus, Contracts or sales literature for the Contracts (or
any amendment or supplement) or otherwise for use in connection
with the sale of the Contracts; or
(b) arise as the result of any failure by the indemnifying party to
provide the services and furnish the materials under the terms of
this Agreement; or
(c) arise out of or result from any material breach or representation
and/or warranty made by the indemnifying party in this Agreement
or arise out of or result from any other material breach of this
Agreement by the indemnifying party, as limited by and in
accordance with the provisions of Sections H.1(a) and H.1(b)
hereof; or
(d) arise out of wrongful conduct of the indemnifying party or
persons under its control with respect to the Registration
Statement, Prospectus, materials furnished, or this Agreement.
H.2. The indemnifying party shall not be liable under this Indemnification
Provision with respect to any losses, claims, damages, liabilities or
litigation incurred or assessed against the indemnified party as such
may arise from the indemnified party's wilful misfeasance, bad faith,
or gross negligence in the performance of its duties or by reasons of
its reckless disregard, obligations or duties under this Agreement.
H.3. The indemnifying party shall not be liable under this Indemnification
Provision with respect to any claim made against the indemnified party
unless the indemnified party shall have notified the indemnifying
party in writing within a reasonable time after the summons or other
first legal process giving information of the nature of the claim
shall have been served upon the indemnified party (or after the
indemnified party shall have received notice of such service on any
designated agent), but failure to notify the indemnifying party of any
such claim shall not relieve the indemnifying party from any liability
which it may have to the indemnified party otherwise than on account
of this Indemnification Provision. In case any such action is brought
against the indemnified party, the indemnifying party shall be
entitled to participate at the indemnifying party's own expense, in
the defense of such action. The indemnifying party shall be entitled
to assume the defense thereof, at the indemnifying party's own cost
and expense, with counsel satisfactory to the indemnified party. After
notice from the indemnifying party to the indemnified party of the
election by the indemnifying party to assume the defense thereof, the
indemnified party shall bear the fees and expenses of any additional
counsel retained by it, and the indemnifying party will not be liable
to the indemnified party under this Agreement for any legal or other
expenses subsequently incurred by the indemnified party independently
in connection with the defense thereof other than reasonable costs of
investigation.
H.4. The indemnified party will promptly notify the indemnifying party of
the commencement of any litigation or proceedings against it in
connection with the issuance for sale of the Contracts.
I. TERMINATION. This Agreement may be terminated at any time by either party
upon 60 days written notice to the other party, without the payment of any
penalty. This Agreement shall terminate automatically if it shall be
assigned. Upon termination of this Agreement, all authorizations, rights
and obligations shall cease except the obligation to settle accounts
hereunder, including commissions on premiums subsequently received for
Contracts in effect at the time of termination or issued pursuant to
obligations received by COMPANION prior to termination, and the agreements
contained in Section G, above.
J. REGULATION. This Agreement shall be subject to the provisions to the 1940
Act and the 1934 Act and the rules, regulations and rulings thereunder and
of the NASD, from time-to-time in effect, including such exemptions from
the 1940 Act as the SEC may grant, and the terms hereof shall be
interpreted and construed in accordance therewith. Without limiting the
generality of the foregoing, the term "assigned" shall not include any
transaction exempted from Section 15(b)(2) of the 1940 Act.
UNDERWRITER shall submit to all regulatory and administrative bodies having
jurisdiction over the operations of the Accounts, present or future, any
information, reports or other material which such body by reason of this
Agreement may request or require pursuant to applicable laws or
regulations.
K. SEVERABILITY. If any provisions of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
L. APPLICABLE LAW. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of Nebraska.
Signed by the parties.
COMPANION LIFE INSURANCE COMPANY
By:
Print Name:
Title:
Date:
MUTUAL OF OMAHA INVESTOR SERVICES, INC.
By:
Print Name:
Title:
Date:
<PAGE>
COMPENSATION SCHEDULE to the
PRINCIPLE UNDERWRITING AGREEMENT between
COMPANION LIFE INSURANCE COMPANY
("COMPANION")
and
MUTUAL OF OMAHA INVESTOR SERVICES, INC.
("UNDERWRITER")
Compensation Schedule Effective Date: , 1995
For Services Rendered by UNDERWRITER to COMPANION on COMPANION'S own behalf and
on behalf of COMPANION SEPARATE ACCOUNT C, COMPANION shall pay to UNDERWRITER:
1.
2. .
This compensation schedule shall remain in effect for at least one year from the
effective date stated above. Either party may initiate subsequent compensation
schedule terms upon 45 days advance notice to the other party.
EXHIBIT (6) (A): ARTICLES OF INCORPORATION OF COMPANION LIFE INSURANCE COMPANY
DECLARATION AND CHARTER
of
COMPANION LIFE INSURANCE COMPANY
(Pursuant to Section 1102 of the New York Insurance Law)
D E C L A R A T I O N
We, the undersigned, all being natural persons of full age, and at least
two-thirds of us citizens of the Untied States, and at least one of us a
resident of the State of New York, do hereby declare our intention to form a
stock corporation for the purpose of doing the kinds of insurance business
authorized by Paragraphs "1", "2" and "3", respectively, of Subsection (a) of
Section 1113 of the Insurance Law of the State of New York to the extent
permitted by the Charter, and for that purpose do hereby adopt the following:
C H A R T E R
ARTICLE 1.
The name of this corporation shall be COMPANION LIFE INSURANCE COMPANY.
ARTICLE 2.
The principal office of this Corporation shall be located in the City of
Rye, County of Westchester, State of New York.
ARTICLE 3.
The kinds of insurance to be transacted by this Corporation shall be
those specified in Paragraphs "1" and "2" of Subsection (a) of Section 1113 of
the Insurance Law, as follows:
1. "Life Insurance", meaning every insurance upon the lives of human beings
permanent disability of the insured; and optional modes of settlement of
proceeds and every insurance appertaining thereto. The business of life
insurance shall be deemed to include the granting of endowment benefits;
additional benefits in the event of death by accident of accidental means;
additional benefits operating to safeguard the contract from lapse, or to
provide a special surrender value, in the event of total and;
2. "Annuities", meaning all agreements to make periodical payments where the
making or continuance of all or of some of a series of such payments, or
the amount of any such payments, or the amount of any such payment, is
dependent upon the continuance of human life, except payments made under
the authority of paragraph one;
and also
3. "Accident and health insurance", means (i) insurance against death or
personal injury by accident or by any specific kind or kinds of accident
and insurance against sickness, ailment or bodily injury, including
insurance providing disability benefits pursuant to article nine of the
workers' compensation law, except as specified in item (ii) hereof; and
(ii) non-cancelable disability insurance, meaning insurance against
disability resulting from sickness, ailment or bodily injury (but excluding
insurance solely against accidental injury) under any contract which does
not give the insurer the option to cancel or otherwise terminate the
contract at or after one year from its effective date or renewal date.
and to do such other insurance or other business as a stock life insurance
company now is or hereafter may be permitted to do under the Insurance Law, and
for which the Corporation shall have the required capital and surplus, except,
however, the writing of individual and separate accident and health insurance
policies.
ARTICLE 4.
The mode and manner in which the corporate powers of this Corporation
shall be exercised are through a Board of Directors and through such officers as
such Board shall empower.
ARTICLE 5.
The number of the directors of this Corporation shall in no case be less
than thirteen, nor more than seventeen, and the directors need not be
stockholders.
However, if the Corporation shall have admitted assets of less than Five
Hundred Million Dollars, the minimum number of the directors instead shall in no
case be less than nine; shall have at least four who are not officers or
employees of the Corporation or any entity controlling, controlled by, or under
common control with the Corporation and who are not beneficial owners of a
controlling interest in the voting stock of the Corporation or any such entity;
and must be increased to not less than thirteen within one year following the
end of the calendar year in which the Corporation exceeded Five Hundred Million
Dollars in admitted assets.
ARTICLE 6.
(a) The directors of the Corporation shall be elected at the Annual Meeting of
Stockholders of the Corporation. The annual Meeting of the Stockholders of the
Corporation shall be held in the month of December, not later than the fourth
Wednesday of the month in each and every year, or, if the fourth Wednesday of
December is a legal holiday, then on the next succeeding business day. At such
annual Meeting at least the minimum number of directors, as alternatively
provided in Article 5, shall be elected for the ensuing year, the directors to
take office immediately upon election and hold such office until the next Annual
meeting and until their successors are elected. At each Annual Meeting each
stockholder of record on the books of the Corporation, who shall have held his
share in his own name for at least thirty days prior to the meeting, shall be
entitled to one vote in person or by proxy for each share of stock held by him.
Directors shall be chosen and elected by plurality of the whole number of shares
voted at the meeting.
(b) Whenever any vacancies shall occur in the Board of Directors by death,
resignation, removal or otherwise, the remaining members of the Board, at a
meeting called for that purpose, or at any regular meeting shall elect a
director or directors to fill the vacancy or vacancies thus occasioned and each
director so elected shall hold office for the unexpired term of the director
whose place he has taken.
(c) At all times each director of this Corporation shall be at least eighteen
years of age, and a majority of the directors of this Corporation shall be
citizens and residents of the United States, and that not less than three
thereof shall be residents of the State of New York.
ARTICLE 7.
The names and post office addresses of the directors who shall serve
until the first annual meeting of this Corporation are:
Emerson S. Adams 3722 Pacific Street, Omaha, NE
William F. Bleakley 69 Abbey Place, Yonkers, NY
Neil L. Criss 216 Fairacres Road, Omaha, NE
Howard S. Cullman 480 Park Avenue, New York, NY
Russell J. Hopley 5219 Chicago Street, Omaha, NE
Moses G. Hubbard 139 Proctor Boulevard, Utica, NY
William H. Kearns 430 East 57th Street, New York, NY
Orie R. Kelly North Street, White Plains, NY
Dr. Basil MacLean 70 Dartmuth Street, Rochester, NY
E. Clark Mauchly 60 Melrose Drive, New Rochelle, NY
Edward P. Prezzano 251 Bradley Avenue, Mt. Vernon, NY
Carl A. Swanson 651 North 57th Street, Omaha, NE
Vestor Joseph Skutt 681 North 57th Avenue, Omaha, NE
Oscar M. Taylor 520 East 86th Street, New York, NY
ARTICLE 8.
The duration of the corporate existence of this Corporation shall be
perpetual.
ARTICLE 9.
The amount of the capital of this Corporation shall be Two Million
Dollars ($2,000,000) to consist of Five Thousand (5,000) shares of stock of the
par value of $400 each.
IN WITNESS WHEREOF, I have set my hand and seal and affixed the seal of
the Corporation this _____ day of ___________________, 19____.
-----------------------------------
Secretary
(Corporate Seal)
* * * * *
EXHIBIT (6) (B): BYLAWS OF COMPANION LIFE INSURANCE COMPANY
COMPANION LIFE INSURANCE COMPANY
BYLAWS
ARTICLE I
OFFICES - The principal office of the Corporation shall be located in the City
of Rye, County of Westchester, State of New York. The Corporation may have such
other offices, agencies or branches within or without the State of New York, and
in every part of the world, as the Board of Directors may from time to time
determine, and may carry on its business wherever it is duly licensed so to do.
ARTICLE II
MEETINGS OF STOCKHOLDERS
SECTION 1. ANNUAL MEETING. The annual meeting of the Stockholders of the
Corporation, for the election of directors and the transaction of such other
business as may properly come before the meeting, shall be held at the principal
office of the Corporation in the State of New York in the month of December, not
later than the fourth Wednesday of that month in each and every year, or, if a
legal holiday, then on the next succeeding business day. The Chairman of the
Board, or in his absence, the President, or in his absence, an Executive Vice
President shall preside at any meeting of the stockholders.
SECTION 2. NOTICE OF ANNUAL MEETING. Written notice of the annual meeting of the
stockholders shall be signed by the Chairman of the Board or the President, or
the Secretary. It shall state the purpose or purposes for which the meeting is
called and the time when and the place within the State of New York where it is
to be held, and a copy thereof shall be served, either personally or by mail,
upon each stockholder of record entitled to vote at such meeting, not less than
ten nor more than forty days before the meeting. If mailed, it shall be directed
to a stockholder at his address as it appears on the stock book of the
Corporation unless he shall have filed with the Secretary of the Corporation a
written request that notices intended for him be mailed to some other address,
in which case, it shall be mailed to the address designated in such request. A
copy of the notice of the annual meeting for the election of Directors shall be
filed in the office of the Superintendent of Insurance of the State of New York
at least ten days before the day of such election, in addition to the service
thereof, as made in accordance with the provisions of this section.
SECTION 3. INSPECTORS OF ELECTION. The election of Directors shall be conducted
by two inspectors of election, neither of whom shall be a candidate for the
office of Director. The inspectors shall be chosen at each meeting of
stockholders to serve for that meeting. The inspectors, before entering upon the
discharge of their duties, shall be sworn to execute faithfully the duties of
inspectors at such meeting with strict impartiality, and according to the best
of their ability, and the oath so taken shall be subscribed by them. They shall
make a written certificate of the result of the election.
SECTION 4. SPECIAL MEETINGS. Special meetings of the stockholders for any
purpose or purposes other than those regulated by statute may be held at the
principal office of the Corporation or at any other convenient place in the
State of New York. Such special meetings may be called by a majority of the
Board of Directors or by the Chairman of the Board or by the President. Business
transacted at all special meetings shall be confined to the objects stated in
the call and matters germane thereto.
SECTION 5. NOTICE OF SPECIAL MEETINGS. Written notice of a special meeting of
stockholders, stating the time, place and object thereof, shall be given to each
stockholder entitled thereto, in the same manner and within the same time as
provided herein for the service of notice of an annual meeting.
SECTION 6. QUORUM: MAJORITY VOTE. The presence of the holders of a majority of
the stock issued and outstanding entitled to vote, present in person or
represented by proxy, shall be requisite for and shall constitute a quorum at
all meetings of the stockholders for the transaction of business except as
otherwise provided by law. If such majority shall not be present or represented,
those present in person or by proxy shall have power to adjourn the meeting from
time to time, without notice other than announcement at the meeting, until the
requisite amount of stock shall be present, when any business may be transacted
which might have been transacted at the meeting as originally called. A majority
vote of the quorum present in person or by proxy at any meeting shall govern all
proceedings not herein or by law requiring a different vote.
SECTION 7. NUMBER OF VOTES. At all stockholders' meetings, each stockholder
entitled to vote shall be entitled to one vote for every full share of voting
stock standing in his name on the books of the Corporation on the date for the
determination of stockholders entitled to vote at such meeting.
ARTICLE III.
DIRECTORS
SECTION 1. BOARD OF DIRECTORS. The property and business of the Corporation
shall be managed by a Board of Directors, each of whom shall be at least
eighteen years of age, of not fewer than thirteen and not more than seventeen
members.
At all times, a majority of the Directors shall be citizens and residents of the
United States and not less than three thereof shall be residents of this State.
Not less than one-third of the Directors shall be persons who are not officers
or employees of the Corporation or of any entity controlling, controlled by, or
under common control with the Corporation and who are not beneficial owners of a
controlling interest in the voting stock of the Corporation or any such entity.
At least one such person must be included in any quorum for the transaction of
business at any meeting of the Board. Policyholders of the Corporation shall be
eligible for election as Directors or Officers, whether or not they be
stockholders. The Board of Directors shall have all the powers in the management
of the Corporation's affairs which are not inconsistent with law.
However, if the Corporation shall have admitted assets of less than Five Hundred
Million Dollars, the minimum number of the Directors instead shall in no case be
less than nine of which at least four must not be officers or employees of the
Corporation or any entity controlling, controlled by, or under common control
with the Corporation an who are not beneficial owners of a controlling interest
in the voting stock of the Corporation or any such entity. SECTION 2. TERM. At
each annual meeting of stockholders, Directors shall be elected to hold office
until the next annual meeting. Each Director shall hold office until the
expiration of the term for which he is elected, and until his successor has been
elected and qualified.
SECTION 3. ELECTION. The Directors shall be elected at each annual meeting of
the stockholders or at any adjourned meeting thereof, and the number of persons
requisite to constitute said Board of Directors receiving a plurality of votes
cast at the election shall be directors until the next annual meeting, and until
his successor has been elected and qualified. If at any annual meeting less than
seventeen Directors are elected, an additional Director or Directors may be
elected at a special meeting of the stockholders and said Director or Directors
shall serve until the next annual meeting and until his successor has been
elected and qualified. No election of Directors shall be valid unless a copy of
the Notice of Election shall have been filed in the Office of the Superintendent
of Insurance at least ten days before the day of such election.
SECTION 4. VACANCIES. In case of any vacancy in the Board of Directors, through
death, resignation, or other cause, the remaining Directors, by the affirmative
vote of a majority of the Board of Directors, may elect a successor to hold
office for the unexpired portion of the term of the Director whose place shall
have become vacant, and until the election of a successor. Such successor shall
not take office, nor exercise the duties thereof, until ten days after written
notice of his election shall have been filed in the Office of the Superintendent
of Insurance of the State of New York.
SECTION 5. REGULAR MEETINGS Regular Meetings of the Board of Directors shall be
held each year, upon notice, on any day of any month in the first, second, and
third quarters of said year, except for the meeting (in the fourth quarter) in
December, which shall be held on any day during that month subsequent to the
Annual Meeting of Stockholders.
SECTION 6. SPECIAL MEETINGS. Special Meetings of the Board may be called by the
Chairman of the Board, or by the President, or by any two Directors on two days'
notice to each Director, either personally, or by mail or wire.
SECTION 7. PLACE OF MEETING. Directors may hold their meetings in such place or
places, both within and without the State of New York, as the Board of Directors
from time to time may determine.
SECTION 8. QUORUM AND VOTE. A majority of the Board of Directors shall
constitute a quorum for the transaction of business at any meeting. An
affirmative vote of a majority of the Directors present at any meeting shall
govern all proceedings provided at least one Director in the quorum is a person
who is not an officer or employee of the Corporation or of any entity
controlling, controlled by, or under common control with the Corporation and who
is not a beneficial owner of a controlling interest in the voting stock of the
Corporation or any such entity and provided a different vote is not required
herein or by law.
SECTION 9. ADJOURNMENT OF MEETINGS. A majority of the Directors present, whether
or not a quorum is present, may adjourn any meeting to another time and place.
Notice of any adjournment of a meeting shall be given to the Directors who were
not present at the time of the adjournment and, unless such time and place are
announced at the meeting, to the other Directors.
SECTION 10. CONDUCT OF MEETINGS. At any meeting of the Board of Directors, the
Chairman of the Board, or in his absence, the President, or in his absence, any
Director elected by the Directors present thereat, shall preside, and the
Secretary, or in his absence, any person appointed by the presiding officer,
shall act as Secretary thereof and shall keep a record of the proceedings.
SECTION 11. COMPENSATION. Directors as such shall not receive any salary for
their services but by resolution of the Board, meeting fees and expenses of
attendance, if any, may be allowed, except that no such fee or allowance shall
be paid to a Director who is a salaried employee of the Corporation. Nothing
herein contained shall be construed to preclude any Directors, other than
salaried employees of the Corporation, from serving the Corporation in any other
capacity and receiving compensation therefor.
SECTION 12. INDEMNIFICATION. The Corporation shall indemnify any person, made,
or threatened to be made, a party to any action or proceeding other than one by
or in the right of the Corporation to procure a judgment in its favor, whether
civil or criminal, which any Director of the Corporation served in any capacity
at the request of the Corporation, by reason of the fact that he, his testator
or intestate, was a Director of the Corporation, against judgments, fines,
amounts paid in settlement and reasonable expenses, including attorneys' fees
actually and necessarily incurred as a result of such action or proceeding, or
any appeal therein, if such Director acted, in good faith, for a purpose which
he reasonably believed to be in the best interests of the Corporation and, in
criminal actions or proceedings, in addition, had no reasonable cause to believe
that his conduct was unlawful. The termination of any such civil or criminal
action proceeding by judgment, settlement, conviction or upon a plea of nolo
contendere, or its equivalent, shall not in itself create a presumption that any
such Director did not act, in good faith, for a purpose which he reasonably
believed to be in the best interests of the Corporation or that he had
reasonable cause to believe that his conduct was unlawful.
ARTICLE IV
STANDING COMMITTEES
SECTION 1. The standing committees of the Board of Directors shall consist of an
Executive Committee, an Investment Committee, an Audit Committee and a Committee
of Planning, Operations and Personnel, the members of which shall be elected by
the Board of Directors. No Director shall be a chairman of both the Investment
Committee and the Audit Committee. Members of the respective committees shall be
chosen by resolution adopted by a majority of the entire Board. At least
one-third of the members of the Executive Committee and the Investment Committee
shall be persons who are not officers or employees of the Corporation or of any
entity controlling, controlled by, or under common control with the Corporation
and who are not beneficial owners of a controlling interest in the voting stock
of the Corporation or any such entity. The Audit Committee and the Planning,
Operations and Personnel Committee shall be comprised solely of Directors who
are not officers or employees of the Corporation or of any entity controlling,
controlled by, or under common control with the Corporation and who are not
beneficial owners of a controlling interest in the voting stock of the
Corporation or any such entity.
SECTION 2. EXECUTIVE COMMITTEE The Executive Committee shall consist of three or
more Directors and be vested with the power of the Board of Directors during
intervals when the Board is not in session, so far as permitted by law and not
otherwise prescribed by these By-laws.
SECTION 3. INVESTMENT COMMITTEE The Investment Committee shall consist of three
or more Directors and shall exercise general control and supervision of the
financial affairs of the Company, including the purchase and sale of securities
and the management of the assets of the Company, and shall adopt rules
regulating their custody and safekeeping. It may authorize expenditures in
connection with the investments of the Company. Every purchase, sale, exchange
or conversion of real estate, stock, bonds, or other securities, and the making
or purchase of every collateral or mortgage loan or other investment must be
authorized or approved by the Investment Committee in accordance with
requirements of the Insurance Law of the State of New York. No purchase or sale
shall be made without the consent of all the members of the Committee present.
The Treasurer, or in his absence, one of his assistants designated by the
Investment Committee, shall act as its Secretary.
SECTION 4. AUDIT COMMITTEE. The Audit Committee shall consist of three or more
Directors and shall have responsibility for recommending the selection of
independent certified public accountants and for reviewing the scope and results
of the independent audit and any internal audit.
SECTION 5. PLANNING, OPERATIONS and PERSONNEL COMMITTEE. The Planning,
Operations and Personnel Committee shall consist of three or more Directors and
shall have responsibility for reviewing the Corporation's financial condition,
nominating candidates for Director for election by the shareholders, and
evaluating the performance of officers deemed to be principal officers of the
Corporation and recommending to the Board of Directors the selection and
compensation of such principal officers.
SECTION 6. RULES FOR COMMITTEES. Each Standing Committee shall elect its own
Chairman and Secretary and shall hold regular meetings which shall be convened
on the call of the President, or of the Executive Vice President, or of the
Chairman of the Boards, or of the Chairman of the Committee and shall submit a
report to the Board of Directors at its next meeting. All Standing Committees
shall keep minutes of their meetings and shall have the power to make Rules and
Regulations not inconsistent or in conflict with the Charter and By-laws
concerning the conduct of the business entrusted to them. A majority of the
members of the Standing Committees shall constitute a quorum provided such
majority includes at least one person who it not an officer or employee of the
Corporation or of any entity controlling, controlled by, or under common control
with the Corporation and who is not a beneficial owner of a controlling interest
in the voting stock of the Corporation or any such entity. An affirmative vote
of a majority of the Standing Committee members present at any meeting shall
govern all proceedings except those proceedings herein or by law requiring a
different vote.
SECTION 7. MEETINGS BY MAIL. Where time is of the essence, but not in lieu of a
regularly scheduled meeting of the Board of Directors or any Committee thereof,
any action required or permitted to be taken by a Committee may be taken without
a meeting if all Members of the Committee consent in writing to the adoption of
a resolution authorizing the action. Any resolution adopted pursuant to this
paragraph shall be ratified by the Board at the next regular meeting thereof. If
the Board fails to ratify such resolution it shall be of no further force or
effect.
SECTION 8. COMPENSATION. Directors who hereafter serve on the Standing
Committees of this Corporation shall be paid meeting fees and expenses, if any,
for attendance at any committee meeting as shall be established by resolution of
the Board. No such fee or allowance shall be paid to a Director who is a
salaried employee of the Corporation.
ARTICLE V
OFFICERS
SECTION 1. OFFICERS. The Officers of the Corporation shall be a Chairman of the
Board, a President, one or more Executive Vice Presidents, a Secretary and a
Treasurer, and may include, at the sole discretion of the Board of Directors,
one or more Vice Chairmen of the Board. Policyholders shall be eligible to
election as officers, whether or not they be stockholders. Any two or more
offices may be held by the same person, except the office of President and
Secretary.
SECTION 2. ELECTION AND TERM OF OFFICERS. The Board of Directors, at the meeting
immediately following the annual stockholders' meeting, shall elect, by a
majority vote of the Directors present: a Chairman of the Board, a President,
one or more Executive Vice Presidents, a Secretary and a Treasurer, all of whom
shall hold office until he shall resign or shall be removed or otherwise
disqualified to serve, or his successor shall be elected and qualified. The
Board of Directors, at the aforesaid meeting, may elect, at their sole
discretion, by a majority vote of Directors present, one or more Vice Chairmen
of the Board, who shall hold office for one year.
SECTION 3. OTHER OFFICERS. The Board may appoint such other officers, agents,
and employees as it shall deem necessary, who shall have such authority and
shall perform such duties as from time to time shall be prescribed by the Board.
SECTION 4. REMOVAL OF OFFICERS. Any officer may be removed either with or
without cause by a vote of a majority of the Board of Directors.
SECTION 5. POWERS AND DUTIES OF OFFICERS.
(a) THE CHAIRMAN OF THE BOARD. The Chairman of the Board shall preside
at all meetings of the Stockholder and the Board of Directors.
(b) THE PRESIDENT. The President shall be the chief executive officer
and the chief operating officer of the Corporation. He shall have general charge
and control of the business and affairs of the Corporation, and shall perform
all duties commonly incident to his office and such other duties as the Board
may prescribe.
(c) THE VICE CHAIRMAN OF THE BOARD. There may be one or more Vice
Chairmen of the Board, who shall have such authority and perform such duties as
from time to time shall be prescribed by the Board.
(d) THE EXECUTIVE VICE PRESIDENT. There shall be one or more Executive
Vice Presidents appointed by the Board, who shall have such authority and
perform such duties as from time to time shall be prescribed by the Board.
(e) THE SECRETARY. The Secretary shall attend all meetings of the Board
and of the stockholders and shall record all votes and minutes of all
proceedings in a book to be kept for that purpose. He shall cause to be given
notice of all meetings of stockholders and directors and shall perform such
other duties as pertain to his office. He shall have charge of the corporate
seal.
(f) THE TREASURER. The Treasurer shall have the custody of all the
corporate funds and securities and shall keep full and accurate accounts of
receipts and disbursements in books belonging to the Corporation and shall
deposit all moneys and other valuable effects in the name and to the credit of
the Corporation in such depositories as may be designated by the Board of
Directors. He shall disburse the funds of the Corporation as may be ordered by
the Board, taking proper vouchers for such disbursements, and shall render to
the President and Directors at a regular meeting of the Board, or whenever they
may require it, an account of all transactions as Treasurer and of the financial
condition of this Corporation.
SECTION 6. VACANCIES. In the event of a vacancy in any office for any reason
whatsoever, the Board of Directors at any regular meeting or special meeting may
elect any person to fill the balance of the term.
SECTION 7. COMPENSATION OF OFFICERS. The compensation of officers shall be fixed
by the Board of Directors.
SECTION 8. INDEMNIFICATION. The Corporation shall indemnify any person, made, or
threatened to be made, a party to any action or proceeding other than one by or
in the right of the Corporation to procure a judgment in its favor, whether
civil or criminal, which any officer of the Corporation served in any capacity
at the request of the Corporation, by reason of the fact that he, his testator
or intestate, was an officer of the Corporation, against judgments, fines,
amounts paid in settlement and reasonable expenses, including attorneys' fees
actually and necessarily incurred as a result of such action or proceeding, or
any appeal therein, if such officer acted, in good faith, for a purpose which he
reasonably believed to be in the best interests of the Corporation and, in
criminal actions or proceedings, in addition, had no reasonable cause to believe
that his conduct was unlawful. The termination of any such civil or criminal
action proceeding by judgment, settlement, conviction or upon a plea of nolo
contendere, or its equivalent, shall not in itself create a presumption that any
such officer did not act, in good faith, for a purpose which he reasonably
believed to be in the best interests of the Corporation or that he had
reasonable cause to believe that his conduct was unlawful.
ARTICLE VI
EXPENDITURES
No salary, compensation or emolument shall be paid to any officer,
trustee, or director of the Corporation, nor shall any salary, compensation or
emolument amounting in any year to more than sixty-thousand dollars be paid to
any person, firm or corporation, unless such payment be first authorized by the
Board of Directors.
ARTICLE VII
STOCK CERTIFICATES
SECTION 1. ISSUE AND REGISTRATION. The certificates of stock of the Corporation
shall be numbered and registered as they are issued. They shall bear the
holder's name and number of shares and shall be signed by the President and the
Treasurer or Secretary, and shall bear the corporate seal.
SECTION 2. TRANSFERS. Transfers of stock shall be made on the books of the
Corporation by the person named in the certificate or by his attorney lawfully
constituted and upon surrender of such certificate. Every such transfer of stock
shall be entered on the stock book of the Corporation. The Corporation shall be
entitled to treat the holder of record any share or shares of stock as the
holder in fact thereof, and accordingly, shall not be bound to recognize any
equitable or other claim to or interest in such share on the part of any other
person, whether or not it shall have express or other notice thereof, save as
expressly provided by the laws of New York.
SECTION 3. CLOSING OF TRANSFER BOOKS. The transfer books by resolution of the
Board of Directors, may be closed for a period not exceeding thirty days prior
to any meeting of stockholders or the day designated for the payment of a
dividend.
ARTICLE VIII
DIVIDENDS
The Directors may from time to time manifest an intention to declare cash
dividends out of any funds of the Corporation available therefor at such times
and in such amounts as the Board of Directors may from time to time designate,
but no such cash dividends shall be paid to stockholders of the Corporation
unless a notice of such intention to declare such dividend and the amount
thereof shall have been filed with the Superintendent of Insurance of the State
of New York not less that thirty days in advance of such proposed declaration,
nor if the Superintendent, within thirty days after such filing, gives written
notice to the Corporation of his disapproval of such payment.
ARTICLE IX
INDEMNIFICATION
Any person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, other than an action by or in the right of the
Company, by reason of the fact that he is or was a supervisory employee of the
Company, shall be and hereby is indemnified, without need of affirmative act on
his part, or on the part of the Company's Board of Directors, against all
expenses, including attorneys' fees, judgements, fines and amounts paid in
settlement, actually and reasonably incurred by such employee in connection with
such action, suit or proceeding if said employee acted in good faith, and in a
manner he reasonably believed to be in or not opposed to the best interests of
the Company, and, with respect to any criminal action or proceedings, had no
reasonable cause to believe his conduct was unlawful. The Company shall have the
power to make other additional indemnifications that may be authorized by the
Articles of Incorporation, or Stockholders Resolutions, or duly enacted By-laws.
The termination of any action, suit or proceeding by judgment, order settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.
ARTICLE X
SEAL
The seal of the Corporation shall be circular in form and contain the name of
the Corporation, the year of its organization, and the words "Corporate Seal,
New York."
ARTICLE XI
WAIVERS
The giving of notice to any stockholder or Director, required to be given under
these By-laws or the laws of the State of New York, may be waived by an
instrument in writing, signed by the person or persons entitled to said notice,
whether before or after the time or event referred to in said notice, which
waiver shall be deemed equivalent to such notice.
ARTICLE XII
AMENDMENTS
These By-laws may be altered, amended or repealed by the affirmative vote of the
holders of a majority of the number of shares of the stock of the Corporation
issued and outstanding and entitled to vote at any annual or special meeting of
the Stockholders.
ARTICLE XIII
CONSTRUCTION
The masculine gender, where appearing in the By-laws, shall be deemed to
included the feminine gender.
COMPANION LIFE INSURANCE COMPANY
BY-LAWS
Adopted At Special Meeting
of Stockholder on
November 9, 1971
As Amended
Through
December 13, 1996
Amended March 28, 1973
Amended March 26, 1975
Amended June 26, 1975
Amended August 23, 1976
Amended March 23, 1977
Amended March 26, 1980
Amended November 29, 1984
Amended June 9, 1986
Amended June 17, 1987
Amended March 21, 1991
Amended December 8, 1993
Amended December 13, 1996
401 Theodore Fremd Avenue
Rye, New York
.
*****
EXHIBIT (9): OPINION AND CONSENT OF COUNSEL
- ------------------------------------------------------------------------------
COMPANION LIFE INSURANCE COMPANY
- ------------------------------------------------------------------------------
Mutual of Omaha Plaza
Omaha, Nebraska 68175
April 23, 1997
Companion Life Insurance Company
Mutual of Omaha Plaza
Omaha, NE 68175-1008
Re: Registration Statement
To Whom It May Concern:
With reference to the Registration Statement on Form N-4 as amended, filed by
Companion Life Insurance Company and Companion Life Separate Account C with the
Securities and Exchange Commission covering individual variable annuity
contracts, I have examined such documents and such laws I considered necessary
and appropriate and on the basis of such examination, it is my opinion that:
1. Companion Life Insurance Company is duly organized and validly existing
under the laws of the State of New York and has been duly authorized to
issue individual variable annuity contracts by the Insurance Department
of the State of New York.
2. Companion Separate Account C is a duly authorized and existing separate
account to establish pursuant to the provision of New York Insurance
Laws Chapter 29, Sectin 4240 and other applicable statutes and
regulations thereunder.
3. The individual variable annuity contracts, when issued as contemplated
by said Form N-4 Registration Statement, will constitute legal, validly
issued and binding obligations of Companion Life Insurance Company.
I hereby consent to the filing of this opinion as an Exhibit to said Form N-4
Registration Statement and to the use of my name under the caption "Legal
Matters" in the Registration Statement.
Sincerely,
/s/ Kenneth W. Reitz
Assistant Secretary
Companion Life Insurance Company consent.lfh
EXHIBIT (10): CONSENTS OF INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
1200 Landmark Center
1299 Farnam, Suite 1000
Omaha, Nebraska 68102-1842
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in Part B of the Statement of Additional
Information filed as part of the Post-Effective Amendment No. 1 to the
registration statement of the Companion Life Separate Account C (the "Variable
Account") on Form N-4 (File No. 33-98062) of our report, dated March 20, 1996,
on our audits of the financial statements of Companion Life Separate Account C.
We also consent to the reference to our Firm as the independent accountants
for the "Variable Account."
/s/ Coopers & Lybrand L.L.P.
Omaha, Nebraska
April 21, 1997
<PAGE>
Coopers & Lybrand L.L.P.
1200 Landmark Center
1299 Farnam, Suite 1000
Omaha, Nebraska 68102-1842
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in Part B of the Statement of Additional
Information filed as part of the Post-Effective Amendment No. 1 to the
registration statement of the Companion Life Separate Account C (the "Variable
Account") on Form N-4 (File No. 33-98062) of our report, which includes an
explanatory paragraph regarding the change in opinion as required by Financial
Accounting Standards Board Interpretation 40, Applicability of Generally
Accepted Accounting Principles to Mutual Life Insurance and Other Enterprises,
as amended (FIN 40), dated February 23, 1996, on our audits of the financial
statements of Companion Life Insurance Company (Companion).
We also consent to the reference to our Firm as the independent accountants
for Companion.
/s/ Coopers & Lybrand L.L.P.
New York, New York
April 21, 1997
<PAGE>
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 1 to
Registration Statement No. 33-98062 of Companion Life Separate Account C of our
report dated March 18 1997 on the financial statements of Companion Life
Separate Account C and our report dated February 14, 1997 on the financial
statements of Companion Life Insurance Company appearing in the Statement of
Additional Information, which is a part of such Registration Statement, and to
the related reference to us under the heading "Financial Statements."
DELOITTE & TOUCHE LLP
New York, New York
April 21, 1997
EXHIBIT (13): SCHEDULES OF COMPUTATION OF PERFORMANCE DATA
Alger American Growth
12/1996
Assume ($10000 @ $10.00 on 1/ 9/1989)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
4/90 0.0600000000 12.18 0.493 100.492611
4/91 0.0470000000 15.77 0.300 100.792113
4/92 0.0490000000 16.96 0.291 101.083317
4/93 0.0250000000 19.63 0.129 101.212053
5/94 1.7590000000 21.45 8.300 109.511913
5/95 0.3180000000 25.96 1.341 110.853392
5/96 0.9520000000 33.02 3.196 114.049407
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 31.16 110.8533915 3454.19168 1000.00000 1000.00000
1 1996 32.17 110.8533915 3566.15361 1.08333 1031.33002 1.37503 1031.03832
2 1996 33.26 110.8533915 3686.98380 1.11727 1065.15678 1.41771 1064.55476
3 1996 32.70 110.8533915 3624.90590 1.15392 1046.06877 1.46380 1045.16701
4 1996 33.53 110.8533915 3716.91422 1.13324 1071.48712 1.43714 1070.25857
5 1996 33.06 114.0494069 3770.47339 1.16078 1085.76603 1.47164 1084.20891
6 1996 32.25 114.0494069 3678.09337 1.17625 1057.98753 1.49082 1056.15398
7 1996 29.89 114.0494069 3408.93677 1.14615 979.41965 1.45225 977.41419
8 1996 31.14 114.0494069 3551.49853 1.06104 1019.31795 1.34398 1016.94568
9 1996 33.15 114.0494069 3780.73784 1.10426 1084.00781 1.39833 1081.18835
10 1996 33.47 114.0494069 3817.23365 1.17434 1093.29750 1.48667 1090.13849
11 1996 35.37 114.0494069 4033.92752 1.18441 1154.17659 1.49898 1150.52368
12 1996 34.33 114.0494069 3915.31614 1.25036 1118.98946 1.58201 1115.11231
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 13.35%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1118.99 1052.41
TOTAL RETURN 11.90% 5.24%
WITH DEATH BENEFIT CHARGE
ERV 1115.11 1048.76
TOTAL RETURN 11.51% 4.88%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 31.16 110.8533915 3454.19168 1000.00000 1000.00000
1 1996 32.17 110.8533915 3566.15361 1.08333 1031.33002 1.37503 1031.03832
2 1996 33.26 110.8533915 3686.98380 1.11727 1065.15678 1.41771 1064.55476
3 1996 32.70 110.8533915 3624.90590 1.15392 1046.06877 1.46380 1045.16701
4 1996 33.53 110.8533915 3716.91422 1.13324 1071.48712 1.43714 1070.25857
5 1996 33.06 114.0494069 3770.47339 1.16078 1085.76603 1.47164 1084.20891
6 1996 32.25 114.0494069 3678.09337 1.17625 1057.98753 1.49082 1056.15398
7 1996 29.89 114.0494069 3408.93677 1.14615 979.41965 1.45225 977.41419
8 1996 31.14 114.0494069 3551.49853 1.06104 1019.31795 1.34398 1016.94568
9 1996 33.15 114.0494069 3780.73784 1.10426 1084.00781 1.39833 1081.18835
10 1996 33.47 114.0494069 3817.23365 1.17434 1093.29750 1.48667 1090.13849
11 1996 35.37 114.0494069 4033.92752 1.18441 1154.17659 1.49898 1150.52368
12 1996 34.33 114.0494069 3915.31614 1.25036 1118.98946 1.58201 1115.11231
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 13.35%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1118.99 1052.41
TOTAL RETURN 11.90% 5.24%
WITH DEATH BENEFIT CHARGE
ERV 1115.11 1048.76
TOTAL RETURN 11.51% 4.88%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 24.67 101.2120526 2496.90134 1000.00000 1000.00000
1 1994 25.75 101.2120526 2606.21035 1.08333 1042.69453 1.37503 1042.40283
2 1994 25.50 101.2120526 2580.90734 1.12959 1031.44170 1.43334 1030.84908
3 1994 23.64 101.2120526 2392.65292 1.11740 955.08973 1.41745 954.24028
4 1994 23.94 101.2120526 2423.01654 1.03468 966.17548 1.31211 965.03782
5 1994 21.72 109.5119128 2378.59875 1.04669 947.41724 1.32696 946.02016
6 1994 20.68 109.5119128 2264.70636 1.02637 901.02651 1.30081 899.42189
7 1994 21.42 109.5119128 2345.74517 0.97611 932.29216 1.23674 930.36950
8 1994 23.15 109.5119128 2535.20078 1.00998 1006.57935 1.27929 1004.23209
9 1994 22.44 109.5119128 2457.44732 1.09046 974.61756 1.38085 972.05190
10 1994 23.48 109.5119128 2571.33971 1.05584 1018.73116 1.33660 1015.76583
11 1994 22.58 109.5119128 2472.77899 1.10363 978.57907 1.39671 975.43431
12 1994 23.13 109.5119128 2533.01054 1.06013 1001.35501 1.34125 997.85253
1 1995 23.07 109.5119128 2526.43983 1.08480 997.67266 1.37208 993.89198
2 1995 24.14 109.5119128 2643.61757 1.08081 1042.86449 1.36663 1038.62264
3 1995 24.71 109.5119128 2706.03936 1.12977 1066.35911 1.42814 1061.71873
4 1995 26.05 109.5119128 2852.78533 1.15522 1123.03153 1.45990 1117.83483
5 1995 26.27 110.8533915 2912.11860 1.21662 1145.17213 1.53706 1139.54691
6 1995 28.60 110.8533915 3170.40700 1.24060 1245.50180 1.56691 1239.05134
7 1995 30.91 110.8533915 3426.47833 1.34929 1344.75073 1.70374 1337.42483
8 1995 31.52 110.8533915 3494.09890 1.45681 1369.83219 1.83900 1361.97952
9 1995 32.73 110.8533915 3628.23150 1.48398 1420.93377 1.87277 1412.39086
10 1995 31.63 110.8533915 3506.29277 1.53934 1371.63924 1.94208 1362.98071
11 1995 31.59 110.8533915 3501.85864 1.48594 1368.41869 1.87414 1359.38291
12 1995 31.16 110.8533915 3454.19168 1.48245 1348.30946 1.86920 1339.00993
1 1996 32.17 110.8533915 3566.15361 1.46067 1390.55201 1.84118 1380.57054
2 1996 33.26 110.8533915 3686.98380 1.50643 1436.16096 1.89833 1425.44939
3 1996 32.70 110.8533915 3624.90590 1.55584 1410.42442 1.96004 1399.48900
4 1996 33.53 110.8533915 3716.91422 1.52796 1444.69622 1.92434 1433.08685
5 1996 33.06 114.0494069 3770.47339 1.56509 1463.94860 1.97054 1451.76649
6 1996 32.25 114.0494069 3678.09337 1.58594 1426.49459 1.99623 1414.20067
7 1996 29.89 114.0494069 3408.93677 1.54537 1320.56078 1.94457 1308.76730
8 1996 31.14 114.0494069 3551.49853 1.43061 1374.35603 1.79960 1361.70036
9 1996 33.15 114.0494069 3780.73784 1.48889 1461.57799 1.87238 1447.72193
10 1996 33.47 114.0494069 3817.23365 1.58338 1474.10336 1.99067 1459.70626
11 1996 35.37 114.0494069 4033.92752 1.59695 1556.18721 2.00714 1540.56263
12 1996 34.33 114.0494069 3915.31614 1.68587 1508.74407 2.11832 1493.14645
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 56.81%
GROSS ANNUAL RETURN = 16.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1508.74 1444.62
TOTAL RETURN 50.87% 44.46%
AVERAGE ANNUAL RETURN 14.69% 13.05%
WITH DEATH BENEFIT CHARGE
ERV 1493.15 1429.69
TOTAL RETURN 49.31% 42.97%
AVERAGE ANNUAL RETURN 14.30% 12.65%
<TABLE>
<CAPTION>
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1991 18.00 100.7921132 1814.25804 1000.00000 1000.00000
1 1992 18.60 100.7921132 1874.73331 1.08333 1032.25000 1.37503 1031.95830
2 1992 18.73 100.7921132 1887.83628 1.11827 1038.34638 1.41898 1037.75193
3 1992 17.57 100.7921132 1770.91743 1.12488 972.91388 1.42694 972.05418
4 1992 17.10 101.0833169 1728.52472 1.05399 948.57001 1.33661 947.44827
5 1992 17.04 101.0833169 1722.45972 1.02762 944.21408 1.30277 942.82112
6 1992 16.54 101.0833169 1671.91806 1.02290 915.48536 1.29641 913.85977
7 1992 17.36 101.0833169 1754.80638 0.99178 959.88041 1.25659 957.90941
8 1992 17.03 101.0833169 1721.44889 1.03987 940.59396 1.31716 938.38315
9 1992 17.66 101.0833169 1785.13138 1.01898 974.37089 1.29031 971.80695
10 1992 18.31 101.0833169 1850.83553 1.05557 1009.17835 1.33627 1006.23935
11 1992 19.38 101.0833169 1958.99468 1.09328 1067.05945 1.38361 1063.65836
12 1992 20.17 101.0833169 2038.85050 1.15598 1109.40073 1.46257 1105.55442
1 1993 20.90 101.0833169 2112.64132 1.20185 1148.35072 1.52017 1144.04687
2 1993 19.96 101.0833169 2017.62300 1.24405 1095.45836 1.57310 1091.01903
3 1993 20.59 101.0833169 2081.30549 1.18675 1128.84770 1.50019 1123.95481
4 1993 19.70 101.2120526 1993.87744 1.22292 1080.20601 1.54548 1075.19609
5 1993 20.98 101.2120526 2123.42886 1.17022 1149.22176 1.47843 1143.57812
6 1993 21.20 101.2120526 2145.69552 1.24499 1160.02771 1.57246 1153.99743
7 1993 21.32 101.2120526 2157.84096 1.25670 1165.33721 1.58678 1158.94270
8 1993 22.50 101.2120526 2277.27118 1.26245 1228.57279 1.59358 1221.49323
9 1993 23.30 101.2120526 2358.24083 1.33095 1270.92442 1.67959 1263.24450
10 1993 23.68 101.2120526 2396.70141 1.37683 1290.27511 1.73700 1282.10977
11 1993 23.29 101.2120526 2357.22871 1.39780 1267.62700 1.76294 1259.23100
12 1993 24.67 101.2120526 2496.90134 1.37326 1341.36431 1.73148 1332.11260
1 1994 25.75 101.2120526 2606.21035 1.45314 1398.63324 1.83170 1388.59795
2 1994 25.50 101.2120526 2580.90734 1.51519 1383.53909 1.90937 1373.20705
3 1994 23.64 101.2120526 2392.65292 1.49883 1281.12329 1.88821 1271.15550
4 1994 23.94 101.2120526 2423.01654 1.38788 1295.99331 1.74788 1285.53904
5 1994 21.72 109.5119128 2378.59875 1.40399 1270.83168 1.76766 1260.20538
6 1994 20.68 109.5119128 2264.70636 1.37673 1208.60481 1.73282 1198.13123
7 1994 21.42 109.5119128 2345.74517 1.30932 1250.54343 1.64747 1239.35693
8 1994 23.15 109.5119128 2535.20078 1.35476 1350.18962 1.70416 1337.75022
9 1994 22.44 109.5119128 2457.44732 1.46271 1307.31721 1.83945 1294.88258
10 1994 23.48 109.5119128 2571.33971 1.41626 1366.48962 1.78051 1353.11446
11 1994 22.58 109.5119128 2472.77899 1.48036 1312.63104 1.86058 1299.38833
12 1994 23.13 109.5119128 2533.01054 1.42202 1343.18188 1.78670 1329.25192
1 1995 23.07 109.5119128 2526.43983 1.45511 1338.24250 1.82777 1323.97603
2 1995 24.14 109.5119128 2643.61757 1.44976 1398.86121 1.82051 1383.56230
3 1995 24.71 109.5119128 2706.03936 1.51543 1430.37605 1.90244 1414.32889
4 1995 26.05 109.5119128 2852.78533 1.54957 1506.39442 1.94475 1489.08186
5 1995 26.27 110.8533915 2912.11860 1.63193 1536.09303 2.04754 1518.00479
6 1995 28.60 110.8533915 3170.40700 1.66410 1670.67167 2.08731 1650.55590
7 1995 30.91 110.8533915 3426.47833 1.80989 1803.80064 2.26957 1781.60046
8 1995 31.52 110.8533915 3494.09890 1.95412 1837.44402 2.44976 1814.31008
9 1995 32.73 110.8533915 3628.23150 1.99056 1905.98985 2.49474 1881.46366
10 1995 31.63 110.8533915 3506.29277 2.06482 1839.86793 2.58708 1815.64377
11 1995 31.59 110.8533915 3501.85864 1.99319 1835.54800 2.49657 1810.85110
12 1995 31.16 110.8533915 3454.19168 1.98851 1808.57419 2.48998 1783.71199
1 1996 32.17 110.8533915 3566.15361 1.95929 1865.23685 2.45266 1839.07541
2 1996 33.26 110.8533915 3686.98380 2.02067 1926.41506 2.52879 1898.85909
3 1996 32.70 110.8533915 3624.90590 2.08695 1891.89298 2.61099 1864.27693
4 1996 33.53 110.8533915 3716.91422 2.04955 1937.86396 2.56344 1909.03305
5 1996 33.06 114.0494069 3770.47339 2.09935 1963.68841 2.62498 1933.91643
6 1996 32.25 114.0494069 3678.09337 2.12733 1913.44893 2.65920 1883.87453
7 1996 29.89 114.0494069 3408.93677 2.07290 1771.35310 2.59039 1743.42541
8 1996 31.14 114.0494069 3551.49853 1.91897 1843.51213 2.39727 1813.93821
9 1996 33.15 114.0494069 3780.73784 1.99714 1960.50855 2.49423 1928.52862
10 1996 33.47 114.0494069 3817.23365 2.12388 1977.30964 2.65179 1944.49310
11 1996 35.37 114.0494069 4033.92752 2.14209 2087.41399 2.67374 2052.20289
12 1996 34.33 114.0494069 3915.31614 2.26137 2023.77546 2.82185 1989.03920
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 115.81%
GROSS ANNUAL RETURN = 16.63%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2023.78 1972.17
TOTAL RETURN 102.38% 97.22%
AVERAGE ANNUAL RETURN 15.14% 14.55%
WITH DEATH BENEFIT CHARGE
ERV 1989.04 1938.32
TOTAL RETURN 98.90% 93.83%
AVERAGE ANNUAL RETURN 14.74% 14.15%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1988 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1989 10.31 100.0000000 1031.00000 1.08333 1029.91667 1.37503 1029.62497
2 1989 10.07 100.0000000 1007.00000 1.11574 1004.82614 1.41577 1004.24121
3 1989 10.25 100.0000000 1025.00000 1.08856 1021.69872 1.38087 1020.81103
4 1989 10.92 100.0000000 1092.00000 1.10684 1087.37609 1.40365 1086.13356
5 1989 11.40 100.0000000 1140.00000 1.17799 1133.99485 1.49347 1132.38223
6 1989 11.15 100.0000000 1115.00000 1.22849 1107.89805 1.55706 1105.99222
7 1989 11.98 100.0000000 1198.00000 1.20022 1189.16916 1.52078 1186.80091
8 1989 12.47 100.0000000 1247.00000 1.28827 1236.51970 1.63189 1233.71096
9 1989 12.59 100.0000000 1259.00000 1.33956 1247.07928 1.69639 1243.88669
10 1989 12.12 100.0000000 1212.00000 1.35100 1199.17330 1.71039 1195.74050
11 1989 12.41 100.0000000 1241.00000 1.29910 1226.56728 1.64418 1222.70727
12 1989 12.41 100.0000000 1241.00000 1.32878 1225.23850 1.68126 1221.02600
1 1990 11.27 100.0000000 1127.00000 1.32734 1111.35903 1.67895 1107.18189
2 1990 11.24 100.0000000 1124.00000 1.20397 1107.19670 1.52241 1102.71223
3 1990 11.74 100.0000000 1174.00000 1.19946 1155.24976 1.51627 1150.24900
4 1990 11.75 100.4926108 1180.78818 1.25152 1160.67800 1.58163 1155.31822
5 1990 13.27 100.4926108 1333.53695 1.25740 1309.56788 1.58860 1303.18355
6 1990 13.63 100.4926108 1369.71429 1.41870 1343.67626 1.79192 1336.74552
7 1990 13.12 100.4926108 1318.46305 1.45565 1291.94366 1.83807 1284.88982
8 1990 11.93 100.4926108 1198.87685 1.39961 1173.36319 1.76677 1166.58198
9 1990 11.42 100.4926108 1147.62562 1.27114 1121.93151 1.60409 1115.10725
10 1990 11.74 100.4926108 1179.78325 1.21543 1152.15374 1.53331 1144.82038
11 1990 12.43 100.4926108 1249.12315 1.24817 1218.62160 1.57417 1210.53122
12 1990 12.86 100.4926108 1292.33498 1.32017 1259.45808 1.66452 1250.74349
1 1991 13.73 100.4926108 1379.76355 1.36441 1343.29807 1.71981 1333.63851
2 1991 14.76 100.4926108 1483.27094 1.45524 1442.61464 1.83380 1431.85189
3 1991 15.33 100.4926108 1540.55172 1.56283 1496.76254 1.96884 1485.17814
4 1991 14.98 100.7921132 1509.86586 1.62149 1465.32740 2.04217 1453.55307
5 1991 15.50 100.7921132 1562.27776 1.58744 1514.60580 1.99868 1502.01150
6 1991 14.67 100.7921132 1478.62030 1.64082 1431.86028 2.06532 1419.51589
7 1991 15.81 100.7921132 1593.52331 1.55118 1541.57840 1.95188 1527.87404
8 1991 16.43 100.7921132 1656.01442 1.67004 1600.36242 2.10088 1585.68979
9 1991 16.59 100.7921132 1672.14116 1.73373 1614.21347 2.18038 1598.95131
10 1991 16.30 100.7921132 1642.91145 1.74873 1584.24763 2.19861 1568.80238
11 1991 16.00 100.7921132 1612.67381 1.71627 1553.37343 2.15716 1537.77156
12 1991 18.00 100.7921132 1814.25804 1.68282 1745.86229 2.11449 1727.87852
1 1992 18.60 100.7921132 1874.73331 1.89135 1802.16635 2.37589 1783.09858
2 1992 18.73 100.7921132 1887.83628 1.95235 1812.80978 2.45182 1793.10927
3 1992 17.57 100.7921132 1770.91743 1.96388 1698.57365 2.46558 1679.59154
4 1992 17.10 101.0833169 1728.52472 1.84012 1656.07260 2.30949 1637.07552
5 1992 17.04 101.0833169 1722.45972 1.79408 1648.46775 2.25103 1629.08036
6 1992 16.54 101.0833169 1671.91806 1.78584 1598.31137 2.24004 1579.03867
7 1992 17.36 101.0833169 1754.80638 1.73150 1675.81901 2.17123 1655.15109
8 1992 17.03 101.0833169 1721.44889 1.81547 1642.14753 2.27589 1621.41208
9 1992 17.66 101.0833169 1785.13138 1.77899 1701.11739 2.22950 1679.16436
10 1992 18.31 101.0833169 1850.83553 1.84288 1761.88642 2.30891 1738.65935
11 1992 19.38 101.0833169 1958.99468 1.90871 1862.93885 2.39071 1837.87243
12 1992 20.17 101.0833169 2038.85050 2.01818 1936.86090 2.52714 1910.26373
1 1993 20.90 101.0833169 2112.64132 2.09827 2004.86221 2.62668 1976.77401
2 1993 19.96 101.0833169 2017.62300 2.17193 1912.51944 2.71813 1885.14834
3 1993 20.59 101.0833169 2081.30549 2.07190 1970.81263 2.59214 1942.05738
4 1993 19.70 101.2120526 1993.87744 2.13505 1885.89093 2.67039 1857.80823
5 1993 20.98 101.2120526 2123.42886 2.04305 2006.38293 2.55455 1975.96407
6 1993 21.20 101.2120526 2145.69552 2.17358 2025.24863 2.71702 1993.96736
7 1993 21.32 101.2120526 2157.84096 2.19402 2034.51829 2.74177 2002.51220
8 1993 22.50 101.2120526 2277.27118 2.20406 2144.91889 2.75352 2110.59190
9 1993 23.30 101.2120526 2358.24083 2.32366 2218.85902 2.90213 2182.73303
10 1993 23.68 101.2120526 2396.70141 2.40376 2252.64265 3.00133 2215.32993
11 1993 23.29 101.2120526 2357.22871 2.44036 2213.10218 3.04615 2175.79819
12 1993 24.67 101.2120526 2496.90134 2.39753 2341.83737 2.99179 2301.72874
1 1994 25.75 101.2120526 2606.21035 2.53699 2441.82102 3.16495 2399.32856
2 1994 25.50 101.2120526 2580.90734 2.64531 2415.46872 3.29916 2372.73495
3 1994 23.64 101.2120526 2392.65292 2.61676 2236.66483 3.26259 2196.40229
4 1994 23.94 101.2120526 2423.01654 2.42305 2262.62585 3.02013 2221.25529
5 1994 21.72 109.5119128 2378.59875 2.45118 2218.69710 3.05430 2177.48180
6 1994 20.68 109.5119128 2264.70636 2.40359 2110.05755 2.99411 2070.22521
7 1994 21.42 109.5119128 2345.74517 2.28590 2183.27662 2.84663 2141.45821
8 1994 23.15 109.5119128 2535.20078 2.36522 2357.24513 2.94458 2311.46987
9 1994 22.44 109.5119128 2457.44732 2.55368 2282.39581 3.17835 2237.39979
10 1994 23.48 109.5119128 2571.33971 2.47260 2385.70270 3.07650 2338.01740
11 1994 22.58 109.5119128 2472.77899 2.58451 2291.67303 3.21485 2245.18519
12 1994 23.13 109.5119128 2533.01054 2.48265 2345.01058 3.08720 2296.78584
1 1995 23.07 109.5119128 2526.43983 2.54043 2336.38712 3.15816 2287.66974
2 1995 24.14 109.5119128 2643.61757 2.53109 2442.21902 3.14562 2390.62757
3 1995 24.71 109.5119128 2706.03936 2.64574 2497.23960 3.28719 2443.78850
4 1995 26.05 109.5119128 2852.78533 2.70534 2629.95721 3.36029 2572.95256
5 1995 26.27 110.8533915 2912.11860 2.84912 2681.80689 3.53790 2622.92787
6 1995 28.60 110.8533915 3170.40700 2.90529 2916.76266 3.60661 2851.96008
7 1995 30.91 110.8533915 3426.47833 3.15983 3149.18752 3.92154 3078.38916
8 1995 31.52 110.8533915 3494.09890 3.41162 3207.92421 4.23289 3134.90740
9 1995 32.73 110.8533915 3628.23150 3.47525 3327.59580 4.31060 3250.94065
10 1995 31.63 110.8533915 3506.29277 3.60490 3212.15603 4.47015 3137.21187
11 1995 31.59 110.8533915 3501.85864 3.47984 3204.61403 4.31377 3128.93071
12 1995 31.16 110.8533915 3454.19168 3.47167 3157.52147 4.30238 3082.03763
1 1996 32.17 110.8533915 3566.15361 3.42065 3256.44667 4.23790 3177.69889
2 1996 33.26 110.8533915 3686.98380 3.52782 3363.25541 4.36944 3280.99783
3 1996 32.70 110.8533915 3624.90590 3.64353 3302.98461 4.51148 3221.24405
4 1996 33.53 110.8533915 3716.91422 3.57823 3383.24360 4.42932 3298.57720
5 1996 33.06 114.0494069 3770.47339 3.66518 3428.32954 4.53565 3341.57266
6 1996 32.25 114.0494069 3678.09337 3.71402 3340.61833 4.59477 3255.10632
7 1996 29.89 114.0494069 3408.93677 3.61900 3092.53858 4.47588 3012.42731
8 1996 31.14 114.0494069 3551.49853 3.35025 3218.51831 4.14219 3134.26486
9 1996 33.15 114.0494069 3780.73784 3.48673 3422.77795 4.30972 3332.26318
10 1996 33.47 114.0494069 3817.23365 3.70801 3452.11033 4.58197 3359.84785
11 1996 35.37 114.0494069 4033.92752 3.73979 3644.33737 4.61990 3545.95728
12 1996 34.33 114.0494069 3915.31614 3.94803 3533.23325 4.87581 3436.81810
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 291.53%
GROSS ANNUAL RETURN = 18.67%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 3533.23 3533.23
TOTAL RETURN 253.32% 253.32%
AVERAGE ANNUAL RETURN 17.15% 17.15%
WITH DEATH BENEFIT CHARGE
ERV 3436.82 3436.82
TOTAL RETURN 243.68% 243.68%
AVERAGE ANNUAL RETURN 16.74% 16.74%
<PAGE>
Alger American Small Capitalization
12/1996
Assume ($10000 @ $10.00 on 9/21/1988)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/88 0.0650000000 9.60 0.677 100.677083
4/90 0.1400000000 16.33 0.863 101.540206
4/91 0.0200000000 22.07 0.092 101.632222
4/92 0.3810000000 21.55 1.797 103.429061
5/94 2.0910000000 25.74 8.402 111.831166
5/96 0.1640000000 45.19 0.406 112.237015
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 39.41 111.8311656 4407.26624 1000.00000 1000.00000
1 1996 39.55 111.8311656 4422.92260 1.08333 1002.46906 1.37503 1002.17736
2 1996 41.24 111.8311656 4611.91727 1.08601 1044.21928 1.37803 1043.62310
3 1996 40.87 111.8311656 4570.53974 1.13124 1033.71944 1.43502 1032.82483
4 1996 44.02 111.8311656 4922.80791 1.11986 1112.27211 1.42017 1111.00824
5 1996 45.10 112.2370145 5061.88935 1.20496 1142.49157 1.52767 1140.86928
6 1996 42.33 112.2370145 4750.99282 1.23770 1071.08311 1.56873 1069.22942
7 1996 37.34 112.2370145 4190.93012 1.16034 943.65996 1.47023 941.71490
8 1996 39.67 112.2370145 4452.44237 1.02230 1001.52164 1.29489 999.18262
9 1996 42.45 112.2370145 4764.46127 1.08498 1070.62143 1.37391 1067.82958
10 1996 40.49 112.2370145 4544.47672 1.15984 1020.02889 1.46830 1017.05748
11 1996 41.18 112.2370145 4621.92026 1.10503 1036.30642 1.39849 1032.99092
12 1996 40.91 112.2370145 4591.61626 1.12267 1028.38913 1.42040 1024.79764
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1028.39 967.20
TOTAL RETURN 2.84% -3.28%
WITH DEATH BENEFIT CHARGE
ERV 1024.80 963.82
TOTAL RETURN 2.48% -3.62%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 39.41 111.8311656 4407.26624 1000.00000 1000.00000
1 1996 39.55 111.8311656 4422.92260 1.08333 1002.46906 1.37503 1002.17736
2 1996 41.24 111.8311656 4611.91727 1.08601 1044.21928 1.37803 1043.62310
3 1996 40.87 111.8311656 4570.53974 1.13124 1033.71944 1.43502 1032.82483
4 1996 44.02 111.8311656 4922.80791 1.11986 1112.27211 1.42017 1111.00824
5 1996 45.10 112.2370145 5061.88935 1.20496 1142.49157 1.52767 1140.86928
6 1996 42.33 112.2370145 4750.99282 1.23770 1071.08311 1.56873 1069.22942
7 1996 37.34 112.2370145 4190.93012 1.16034 943.65996 1.47023 941.71490
8 1996 39.67 112.2370145 4452.44237 1.02230 1001.52164 1.29489 999.18262
9 1996 42.45 112.2370145 4764.46127 1.08498 1070.62143 1.37391 1067.82958
10 1996 40.49 112.2370145 4544.47672 1.15984 1020.02889 1.46830 1017.05748
11 1996 41.18 112.2370145 4621.92026 1.10503 1036.30642 1.39849 1032.99092
12 1996 40.91 112.2370145 4591.61626 1.12267 1028.38913 1.42040 1024.79764
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1028.39 967.20
TOTAL RETURN 2.84% -3.28%
WITH DEATH BENEFIT CHARGE
ERV 1024.80 963.82
TOTAL RETURN 2.48% -3.62%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 30.88 103.4290612 3193.88941 1000.00000 1000.00000
1 1994 30.54 103.4290612 3158.72353 1.08333 987.90630 1.37503 987.61460
2 1994 30.23 103.4290612 3126.66052 1.07023 976.80821 1.35800 976.23170
3 1994 28.11 103.4290612 2907.39091 1.05821 907.24741 1.34235 906.42718
4 1994 28.37 103.4290612 2934.28247 0.98285 914.65603 1.24637 913.56470
5 1994 25.48 111.8311656 2849.45810 0.99088 887.22423 1.25618 885.89915
6 1994 24.29 111.8311656 2716.37901 0.96116 844.82678 1.21814 843.30660
7 1994 24.74 111.8311656 2766.70304 0.91523 859.56293 1.15957 857.77024
8 1994 26.69 111.8311656 2984.77381 0.93119 926.38225 1.17946 924.20000
9 1994 26.52 111.8311656 2965.76251 1.00358 919.47815 1.27081 917.04257
10 1994 27.76 111.8311656 3104.43316 0.99610 961.47424 1.26096 958.65991
11 1994 26.40 111.8311656 2952.34277 1.04160 913.32871 1.31819 910.37568
12 1994 27.31 111.8311656 3054.10913 0.98944 943.82144 1.25180 940.50425
1 1995 26.84 111.8311656 3001.54849 1.02247 926.55597 1.29322 923.02513
2 1995 28.76 111.8311656 3216.26432 1.00377 991.83341 1.26919 987.78456
3 1995 29.59 111.8311656 3309.08419 1.07449 1019.38277 1.35824 1014.93332
4 1995 30.89 111.8311656 3454.46471 1.10433 1063.06375 1.39557 1058.12759
5 1995 32.07 111.8311656 3586.42548 1.15165 1102.52120 1.45496 1097.09317
6 1995 36.02 111.8311656 4028.15859 1.19440 1237.12222 1.50854 1230.71148
7 1995 41.18 111.8311656 4605.20740 1.34022 1413.00439 1.69227 1405.32324
8 1995 41.72 111.8311656 4665.59623 1.53075 1430.00259 1.93237 1421.81911
9 1995 42.83 111.8311656 4789.72882 1.54917 1466.49999 1.95505 1457.69290
10 1995 40.83 111.8311656 4566.06649 1.58871 1396.43125 2.00438 1387.61974
11 1995 40.76 111.8311656 4558.23831 1.51280 1392.52437 1.90802 1383.33275
12 1995 39.41 111.8311656 4407.26624 1.50857 1344.89441 1.90213 1335.61366
1 1996 39.55 111.8311656 4422.92260 1.45697 1348.21504 1.83651 1338.52178
2 1996 41.24 111.8311656 4611.91727 1.46057 1404.36468 1.84051 1393.87727
3 1996 40.87 111.8311656 4570.53974 1.52140 1390.24350 1.91663 1379.45495
4 1996 44.02 111.8311656 4922.80791 1.50610 1495.88854 1.89680 1483.87778
5 1996 45.10 112.2370145 5061.88935 1.62055 1536.53053 2.04038 1523.76060
6 1996 42.33 112.2370145 4750.99282 1.66457 1440.49368 2.09522 1428.07742
7 1996 37.34 112.2370145 4190.93012 1.56053 1269.12300 1.96365 1257.76729
8 1996 39.67 112.2370145 4452.44237 1.37488 1346.94085 1.72947 1334.52196
9 1996 42.45 112.2370145 4764.46127 1.45919 1439.87278 1.83501 1426.20777
10 1996 40.49 112.2370145 4544.47672 1.55986 1371.83116 1.96108 1358.39587
11 1996 41.18 112.2370145 4621.92026 1.48615 1393.72272 1.86784 1379.67679
12 1996 40.91 112.2370145 4591.61626 1.50987 1383.07480 1.89710 1368.73372
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 43.76%
GROSS ANNUAL RETURN = 12.86%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1383.07 1324.29
TOTAL RETURN 38.31% 32.43%
AVERAGE ANNUAL RETURN 11.42% 9.81%
WITH DEATH BENEFIT CHARGE
ERV 1368.73 1310.56
TOTAL RETURN 36.87% 31.06%
AVERAGE ANNUAL RETURN 11.03% 9.43%
<TABLE>
<CAPTION>
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1991 26.79 101.6322224 2722.72724 1000.00000 1000.00000
1 1992 27.52 101.6322224 2796.91876 1.08333 1026.16564 1.37503 1025.87394
2 1992 27.27 101.6322224 2771.51071 1.11168 1015.73196 1.41061 1015.14398
3 1992 24.23 101.6322224 2462.54875 1.10038 901.40001 1.39586 900.58209
4 1992 22.15 103.4290612 2290.95371 0.97652 837.61224 1.23833 836.58950
5 1992 22.15 103.4290612 2290.95371 0.90741 836.70482 1.15034 835.43916
6 1992 21.21 103.4290612 2193.73039 0.90643 800.29038 1.14876 798.83610
7 1992 22.06 103.4290612 2281.64509 0.86698 831.49538 1.09843 829.75138
8 1992 21.67 103.4290612 2241.30776 0.90079 815.89454 1.14094 813.94122
9 1992 22.87 103.4290612 2365.42263 0.88389 860.19171 1.11920 857.89492
10 1992 23.93 103.4290612 2475.05744 0.93187 899.12880 1.17963 896.47779
11 1992 25.96 103.4290612 2685.01843 0.97406 974.42852 1.23269 971.29399
12 1992 27.26 103.4290612 2819.47621 1.05563 1022.16939 1.33556 1018.59796
1 1993 26.52 103.4290612 2742.93870 1.10735 993.31423 1.40061 989.54649
2 1993 24.38 103.4290612 2521.60051 1.07609 912.08382 1.36066 908.33555
3 1993 24.96 103.4290612 2581.58937 0.98809 932.79420 1.24899 928.69586
4 1993 24.29 103.4290612 2512.29190 1.01053 906.74472 1.27699 902.48993
5 1993 26.36 103.4290612 2726.39005 0.98231 983.03543 1.24095 978.15940
6 1993 26.72 103.4290612 2763.62452 1.06496 995.39585 1.34500 990.17318
7 1993 26.72 103.4290612 2763.62452 1.07835 994.31750 1.36152 988.81166
8 1993 28.89 103.4290612 2988.06558 1.07718 1073.99141 1.35965 1067.75595
9 1993 30.17 103.4290612 3120.45478 1.16349 1120.41217 1.46820 1113.59573
10 1993 30.16 103.4290612 3119.42049 1.21378 1118.82702 1.53123 1111.69539
11 1993 29.06 103.4290612 3005.64852 1.21206 1076.80893 1.52862 1069.62086
12 1993 30.88 103.4290612 3193.88941 1.16654 1143.08191 1.47076 1135.13942
1 1994 30.54 103.4290612 3158.72353 1.23834 1129.25782 1.56085 1121.08027
2 1994 30.23 103.4290612 3126.66052 1.22336 1116.57179 1.54152 1108.15909
3 1994 28.11 103.4290612 2907.39091 1.20962 1037.05809 1.52376 1028.92123
4 1994 28.37 103.4290612 2934.28247 1.12348 1045.52676 1.41480 1037.02331
5 1994 25.48 111.8311656 2849.45810 1.13265 1014.16997 1.42594 1005.61905
6 1994 24.29 111.8311656 2716.37901 1.09868 965.70620 1.38276 957.27057
7 1994 24.74 111.8311656 2766.70304 1.04618 982.55083 1.31628 973.68882
8 1994 26.69 111.8311656 2984.77381 1.06443 1058.93079 1.33885 1049.09585
9 1994 26.52 111.8311656 2965.76251 1.14717 1051.03883 1.44254 1040.97117
10 1994 27.76 111.8311656 3104.43316 1.13863 1099.04380 1.43137 1088.21266
11 1994 26.40 111.8311656 2952.34277 1.19063 1044.00953 1.49633 1033.40332
12 1994 27.31 111.8311656 3054.10913 1.13101 1078.86521 1.42096 1067.60345
1 1995 26.84 111.8311656 3001.54849 1.16877 1059.12937 1.46799 1047.76221
2 1995 28.76 111.8311656 3216.26432 1.14739 1133.74682 1.44071 1121.27319
3 1995 29.59 111.8311656 3309.08419 1.22823 1165.23799 1.54179 1152.09082
4 1995 30.89 111.8311656 3454.46471 1.26234 1215.16894 1.58416 1201.12234
5 1995 32.07 111.8311656 3586.42548 1.31643 1260.27204 1.65158 1245.35371
6 1995 36.02 111.8311656 4028.15859 1.36529 1414.13202 1.71240 1397.02912
7 1995 41.18 111.8311656 4605.20740 1.53198 1615.17975 1.92096 1595.23781
8 1995 41.72 111.8311656 4665.59623 1.74978 1634.61009 2.19351 1613.96292
9 1995 42.83 111.8311656 4789.72882 1.77083 1676.32961 2.21925 1654.68467
10 1995 40.83 111.8311656 4566.06649 1.81602 1596.23529 2.27525 1575.14187
11 1995 40.76 111.8311656 4558.23831 1.72925 1591.76941 2.16587 1570.27554
12 1995 39.41 111.8311656 4407.26624 1.72442 1537.32447 2.15918 1516.10772
1 1996 39.55 111.8311656 4422.92260 1.66543 1541.12022 2.08470 1519.40884
2 1996 41.24 111.8311656 4611.91727 1.66955 1605.30385 2.08924 1582.24504
3 1996 40.87 111.8311656 4570.53974 1.73908 1589.16219 2.17564 1565.87370
4 1996 44.02 111.8311656 4922.80791 1.72159 1709.92313 2.15313 1684.40817
5 1996 45.10 112.2370145 5061.88935 1.85242 1756.38025 2.31612 1729.68073
6 1996 42.33 112.2370145 4750.99282 1.90275 1646.60226 2.37837 1621.06698
7 1996 37.34 112.2370145 4190.93012 1.78382 1450.71154 2.22902 1427.74124
8 1996 39.67 112.2370145 4452.44237 1.57160 1539.66371 1.96319 1514.86848
9 1996 42.45 112.2370145 4764.46127 1.66797 1645.89252 2.08299 1618.94466
10 1996 40.49 112.2370145 4544.47672 1.78305 1568.11538 2.22610 1541.96870
11 1996 41.18 112.2370145 4621.92026 1.69879 1593.13922 2.12026 1566.12551
12 1996 40.91 112.2370145 4591.61626 1.72590 1580.96778 2.15347 1553.70361
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.64%
GROSS ANNUAL RETURN = 11.02%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1580.97 1540.65
TOTAL RETURN 58.10% 54.07%
AVERAGE ANNUAL RETURN 9.59% 9.03%
WITH DEATH BENEFIT CHARGE
ERV 1553.70 1514.08
TOTAL RETURN 55.37% 51.41%
AVERAGE ANNUAL RETURN 9.21% 8.65%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8 1988 10.00 100.0000000 1000.00000 1000.00000 1000.00000
9 1988 10.10 100.0000000 1010.00000 1.08333 1008.91667 1.37503 1008.62497
10 1988 9.95 100.0000000 995.00000 1.09299 992.83976 1.38689 992.25850
11 1988 9.69 100.0000000 969.00000 1.07558 965.82063 1.36439 964.96574
12 1988 9.60 100.6770833 966.50000 1.04631 962.28253 1.32686 961.14929
1 1989 10.69 100.6770833 1076.23802 1.04247 1070.49922 1.32161 1068.95817
2 1989 10.90 100.6770833 1097.38021 1.15971 1090.36897 1.46985 1088.48750
3 1989 11.72 100.6770833 1179.93542 1.18123 1171.21549 1.49671 1168.87701
4 1989 12.64 100.6770833 1272.55833 1.26882 1261.88509 1.60724 1259.02461
5 1989 13.31 100.6770833 1340.01198 1.36704 1327.40594 1.73120 1324.02968
6 1989 13.12 100.6770833 1320.88333 1.43802 1307.01923 1.82058 1303.30860
7 1989 14.48 100.6770833 1457.80417 1.41594 1441.08699 1.79209 1436.61557
8 1989 15.59 100.6770833 1569.55573 1.56118 1549.99588 1.97539 1544.76747
9 1989 16.25 100.6770833 1636.00260 1.67916 1613.93553 2.12411 1608.04084
10 1989 15.32 100.6770833 1542.37292 1.74843 1519.82033 2.21111 1513.80031
11 1989 15.71 100.6770833 1581.63698 1.64647 1556.86380 2.08153 1550.25548
12 1989 15.79 100.6770833 1589.69115 1.68660 1563.10521 2.13165 1556.01819
1 1990 14.39 100.6770833 1448.74323 1.69336 1422.82114 2.13958 1415.91626
2 1990 15.15 100.6770833 1525.25781 1.54139 1496.42527 1.94693 1488.75018
3 1990 16.04 100.6770833 1614.86042 1.62113 1582.71295 2.04708 1574.16103
4 1990 15.85 101.5402059 1609.41226 1.71461 1575.65865 2.16452 1566.68566
5 1990 18.05 101.5402059 1832.80072 1.70696 1792.65510 2.15424 1781.98936
6 1990 18.24 101.5402059 1852.09336 1.94204 1809.58311 2.45029 1798.29685
7 1990 17.23 101.5402059 1749.53775 1.96038 1707.42103 2.47272 1696.24739
8 1990 15.63 101.5402059 1587.07342 1.84971 1547.01801 2.33240 1536.39927
9 1990 14.46 101.5402059 1468.27138 1.67594 1429.53842 2.11260 1419.27790
10 1990 14.22 101.5402059 1443.90173 1.54867 1404.26297 1.95155 1393.76986
11 1990 15.75 101.5402059 1599.25824 1.52128 1553.83328 1.91648 1541.81596
12 1990 17.02 101.5402059 1728.21430 1.68332 1677.44318 2.12005 1664.02012
1 1991 18.25 101.5402059 1853.10876 1.81723 1796.85128 2.28808 1781.98731
2 1991 19.58 101.5402059 1988.15723 1.94659 1925.85330 2.45029 1909.40240
3 1991 21.40 101.5402059 2172.96041 2.08634 2102.77886 2.62549 2084.25966
4 1991 20.56 101.6322224 2089.55849 2.27801 2019.79263 2.86593 2001.39631
5 1991 21.70 101.6322224 2205.41923 2.18811 2129.59691 2.75199 2109.61669
6 1991 20.17 101.6322224 2049.92193 2.30706 1977.13854 2.90079 1957.97333
7 1991 21.85 101.6322224 2220.66406 2.14190 2139.67650 2.69228 2118.36460
8 1991 22.01 101.6322224 2236.92522 2.31798 2153.02663 2.91282 2130.96384
9 1991 22.65 101.6322224 2301.96984 2.33245 2213.29923 2.93015 2189.99720
10 1991 23.75 101.6322224 2413.76528 2.39774 2318.39064 3.01132 2293.34336
11 1991 22.82 101.6322224 2319.24732 2.51159 2225.09575 3.15342 2200.38744
12 1991 26.79 101.6322224 2722.72724 2.41052 2609.78559 3.02561 2580.16368
1 1992 27.52 101.6322224 2796.91876 2.82727 2678.07230 3.54781 2646.92268
2 1992 27.27 101.6322224 2771.51071 2.90124 2650.84263 3.63961 2619.23763
3 1992 24.23 101.6322224 2462.54875 2.87175 2352.46074 3.60154 2323.64920
4 1992 22.15 103.4290612 2290.95371 2.54850 2185.98834 3.19510 2158.53785
5 1992 22.15 103.4290612 2290.95371 2.36815 2183.62019 2.96806 2155.56978
6 1992 21.21 103.4290612 2193.73039 2.36559 2088.58629 2.96398 2061.12790
7 1992 22.06 103.4290612 2281.64509 2.26264 2170.02467 2.83412 2140.89438
8 1992 21.67 103.4290612 2241.30776 2.35086 2129.30982 2.94380 2100.10158
9 1992 22.87 103.4290612 2365.42263 2.30675 2244.91593 2.88771 2213.50930
10 1992 23.93 103.4290612 2475.05744 2.43199 2346.53338 3.04365 2313.05944
11 1992 25.96 103.4290612 2685.01843 2.54208 2543.04951 3.18053 2506.09749
12 1992 27.26 103.4290612 2819.47621 2.75497 2667.64293 3.44597 2628.14947
1 1993 26.52 103.4290612 2742.93870 2.88995 2592.33715 3.61379 2553.19192
2 1993 24.38 103.4290612 2521.60051 2.80837 2380.34321 3.51072 2343.65440
3 1993 24.96 103.4290612 2581.58937 2.57871 2434.39285 3.22260 2396.18732
4 1993 24.29 103.4290612 2512.29190 2.63726 2366.40931 3.29484 2328.57175
5 1993 26.36 103.4290612 2726.39005 2.56361 2565.51170 3.20186 2523.81136
6 1993 26.72 103.4290612 2763.62452 2.77930 2597.76973 3.47032 2554.80887
7 1993 26.72 103.4290612 2763.62452 2.81425 2594.95548 3.51295 2551.29592
8 1993 28.89 103.4290612 2988.06558 2.81120 2802.88730 3.50812 2754.98512
9 1993 30.17 103.4290612 3120.45478 3.03646 2924.03553 3.78820 2873.25926
10 1993 30.16 103.4290612 3119.42049 3.16771 2919.89864 3.95083 2868.35607
11 1993 29.06 103.4290612 3005.64852 3.16322 2810.24044 3.94409 2759.79688
12 1993 30.88 103.4290612 3193.88941 3.04443 2983.19868 3.79481 2928.84551
1 1994 30.54 103.4290612 3158.72353 3.23180 2947.12078 4.02726 2892.57060
2 1994 30.23 103.4290612 3126.66052 3.19271 2914.01296 3.97738 2859.23182
3 1994 28.11 103.4290612 2907.39091 3.15685 2706.49927 3.93154 2654.78518
4 1994 28.37 103.4290612 2934.28247 2.93204 2728.60066 3.65042 2675.68988
5 1994 25.48 111.8311656 2849.45810 2.95598 2646.76617 3.67916 2594.66175
6 1994 24.29 111.8311656 2716.37901 2.86733 2520.28613 3.56775 2469.91475
7 1994 24.74 111.8311656 2766.70304 2.73031 2564.24700 3.39622 2512.27653
8 1994 26.69 111.8311656 2984.77381 2.77793 2763.58231 3.45446 2706.83901
9 1994 26.52 111.8311656 2965.76251 2.99388 2742.98599 3.72199 2685.87600
10 1994 27.76 111.8311656 3104.43316 2.97157 2868.26867 3.69317 2807.76678
11 1994 26.40 111.8311656 2952.34277 3.10729 2724.64101 3.86077 2666.34971
12 1994 27.31 111.8311656 3054.10913 2.95169 2815.60687 3.66632 2754.59165
1 1995 26.84 111.8311656 3001.54849 3.05024 2764.10056 3.78766 2703.39799
2 1995 28.76 111.8311656 3216.26432 2.99444 2958.83611 3.71726 2893.06837
3 1995 29.59 111.8311656 3309.08419 3.20541 3041.02132 3.97807 2972.58288
4 1995 30.89 111.8311656 3454.46471 3.29444 3171.33039 4.08740 3099.09223
5 1995 32.07 111.8311656 3586.42548 3.43561 3289.03980 4.26136 3213.21640
6 1995 36.02 111.8311656 4028.15859 3.56313 3690.58136 4.41828 3604.56378
7 1995 41.18 111.8311656 4605.20740 3.99813 4215.27284 4.95640 4115.97466
8 1995 41.72 111.8311656 4665.59623 4.56655 4265.98185 5.65960 4164.28850
9 1995 42.83 111.8311656 4789.72882 4.62148 4374.86085 5.72604 4269.35729
10 1995 40.83 111.8311656 4566.06649 4.73943 4165.83186 5.87051 4064.12385
11 1995 40.76 111.8311656 4558.23831 4.51298 4154.17687 5.58831 4051.56790
12 1995 39.41 111.8311656 4407.26624 4.50036 4012.08723 5.57104 3911.80607
1 1996 39.55 111.8311656 4422.92260 4.34643 4021.99334 5.37886 3920.32350
2 1996 41.24 111.8311656 4611.91727 4.35716 4189.49885 5.39058 4082.45117
3 1996 40.87 111.8311656 4570.53974 4.53862 4147.37258 5.61351 4040.21043
4 1996 44.02 111.8311656 4922.80791 4.49299 4462.53273 5.55542 4346.04877
5 1996 45.10 112.2370145 5061.88935 4.83441 4583.77586 5.97596 4462.85938
6 1996 42.33 112.2370145 4750.99282 4.96576 4297.27885 6.13658 4182.61814
7 1996 37.34 112.2370145 4190.93012 4.65539 3786.04607 5.75124 3683.80608
8 1996 39.67 112.2370145 4452.44237 4.10155 4018.19217 5.06536 3908.60864
9 1996 42.45 112.2370145 4764.46127 4.35304 4295.42658 5.37447 4177.14222
10 1996 40.49 112.2370145 4544.47672 4.65338 4092.44491 5.74371 3978.53164
11 1996 41.18 112.2370145 4621.92026 4.43348 4157.75178 5.47061 4040.86015
12 1996 40.91 112.2370145 4591.61626 4.50423 4125.98691 5.55632 4008.80961
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 359.16%
GROSS ANNUAL RETURN = 20.22%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 4125.99 4125.99
TOTAL RETURN 312.60% 312.60%
AVERAGE ANNUAL RETURN 18.68% 18.68%
WITH DEATH BENEFIT CHARGE
ERV 4008.81 4008.81
TOTAL RETURN 300.88% 300.88%
AVERAGE ANNUAL RETURN 18.27% 18.27%
<PAGE>
Federated Government Bond
12/1996
Assume ($10000 @ $10.00 on 3/28/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
3/94 0.0000000000 10.00 0.000 100.000000
4/94 0.0240000000 9.99 0.240 100.240240
5/94 0.0190000000 9.97 0.191 100.431270
6/94 0.0290000000 9.98 0.292 100.723104
7/94 0.0320000000 9.96 0.324 101.046713
8/94 0.0310000000 9.97 0.314 101.360900
9/94 0.0290000000 9.97 0.295 101.655731
10/94 0.0300000000 9.98 0.306 101.961309
11/94 0.0360000000 9.97 0.368 102.329475
12/94 0.0380000000 9.97 0.390 102.719497
1/95 0.0350000000 9.97 0.361 103.080097
2/95 0.0390000000 9.98 0.403 103.482915
3/95 0.0420000000 9.97 0.436 103.918851
4/95 0.0400000000 9.98 0.417 104.335359
5/95 0.0400000000 9.98 0.418 104.753537
6/95 0.0400000000 9.98 0.420 105.173391
7/95 0.0400000000 9.99 0.421 105.594505
8/95 0.0520000000 9.96 0.551 106.145802
9/95 0.0520000000 10.07 0.548 106.693923
10/95 0.0520000000 10.12 0.548 107.242153
11/95 0.0530000000 10.17 0.559 107.801035
12/95 0.0530000000 10.22 0.559 108.360082
1/96 0.0490000000 10.28 0.517 108.876584
2/96 0.0490000000 10.21 0.523 109.399107
3/96 0.0893000000 10.04 0.973 110.372148
4/96 0.0480000000 9.98 0.531 110.902996
5/96 0.0480000000 9.94 0.536 111.438544
6/96 0.0480000000 9.83 0.544 111.982700
7/96 0.0440000000 9.87 0.499 112.481913
8/96 0.0440000000 9.98 0.496 112.977826
9/96 0.0480000000 9.89 0.548 113.526151
10/96 0.0480000000 10.02 0.544 114.069989
11/96 0.0480000000 10.21 0.536 114.606263
12/96 0.0480000000 10.11 0.544 115.150387
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.29 108.3600819 1115.02524 1000.00000 1000.00000
1 1996 10.32 108.8765842 1123.60635 1.08333 1006.61255 1.37503 1006.32085
2 1996 10.17 109.3991065 1112.58891 1.09050 995.65179 1.38372 995.06973
3 1996 10.03 110.3721484 1107.03265 1.07862 989.60089 1.36825 988.73210
4 1996 9.94 110.9029964 1102.37578 1.07207 984.36595 1.35954 983.21334
5 1996 9.87 111.4385441 1099.89843 1.06640 981.08740 1.35195 979.65183
6 1996 9.94 111.9826997 1113.10804 1.06284 991.80726 1.34705 990.07023
7 1996 9.92 112.4819134 1115.82058 1.07446 993.14975 1.36138 991.12157
8 1996 9.85 112.9778256 1112.83158 1.07591 989.41344 1.36283 987.10378
9 1996 9.96 113.5261508 1130.72046 1.07186 1004.24650 1.35730 1001.61427
10 1996 10.11 114.0699886 1153.24758 1.08793 1023.16597 1.37725 1020.19199
11 1996 10.21 114.6062628 1170.12994 1.10843 1037.03564 1.40280 1033.72375
12 1996 10.09 115.1503875 1161.86741 1.12346 1028.58945 1.42140 1025.00300
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.20%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1028.59 967.39
TOTAL RETURN 2.86% -3.26%
WITH DEATH BENEFIT CHARGE
ERV 1025.00 964.02
TOTAL RETURN 2.50% -3.60%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.29 108.3600819 1115.02524 1000.00000 1000.00000
1 1996 10.32 108.8765842 1123.60635 1.08333 1006.61255 1.37503 1006.32085
2 1996 10.17 109.3991065 1112.58891 1.09050 995.65179 1.38372 995.06973
3 1996 10.03 110.3721484 1107.03265 1.07862 989.60089 1.36825 988.73210
4 1996 9.94 110.9029964 1102.37578 1.07207 984.36595 1.35954 983.21334
5 1996 9.87 111.4385441 1099.89843 1.06640 981.08740 1.35195 979.65183
6 1996 9.94 111.9826997 1113.10804 1.06284 991.80726 1.34705 990.07023
7 1996 9.92 112.4819134 1115.82058 1.07446 993.14975 1.36138 991.12157
8 1996 9.85 112.9778256 1112.83158 1.07591 989.41344 1.36283 987.10378
9 1996 9.96 113.5261508 1130.72046 1.07186 1004.24650 1.35730 1001.61427
10 1996 10.11 114.0699886 1153.24758 1.08793 1023.16597 1.37725 1020.19199
11 1996 10.21 114.6062628 1170.12994 1.10843 1037.03564 1.40280 1033.72375
12 1996 10.09 115.1503875 1161.86741 1.12346 1028.58945 1.42140 1025.00300
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.20%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1028.59 967.39
TOTAL RETURN 2.86% -3.26%
WITH DEATH BENEFIT CHARGE
ERV 1025.00 964.02
TOTAL RETURN 2.50% -3.60%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 9.97 100.2402402 999.39520 1.08333 998.31186 1.37503 998.02016
5 1994 9.98 100.4312698 1002.30407 1.08150 1000.13608 1.37231 999.55273
6 1994 9.99 100.7231041 1006.22381 1.08348 1002.96386 1.37442 1002.08729
7 1994 9.97 101.0467125 1007.43572 1.08654 1003.08530 1.37790 1001.91631
8 1994 9.98 101.3608999 1011.58178 1.08668 1006.12678 1.37767 1004.66199
9 1994 9.97 101.6557310 1013.50764 1.08997 1006.95228 1.38144 1005.19323
10 1994 9.99 101.9613093 1018.59348 1.09086 1010.91436 1.38217 1008.85517
11 1994 9.98 102.3294745 1021.24816 1.09516 1012.45387 1.38721 1010.09726
12 1994 9.98 102.7194966 1025.14058 1.09682 1015.21595 1.38892 1012.55826
1 1995 9.99 103.0800966 1029.77017 1.09982 1018.70090 1.39230 1015.73873
2 1995 9.99 103.4829147 1033.79432 1.10359 1021.57820 1.39667 1018.31137
3 1995 9.99 103.9188507 1038.14932 1.10671 1024.77503 1.40021 1021.20094
4 1995 9.99 104.3353591 1042.31024 1.11017 1027.77217 1.40419 1023.88974
5 1995 9.99 104.7535369 1046.48783 1.11342 1030.77808 1.40788 1026.58563
6 1995 9.99 105.1733908 1050.68217 1.11668 1033.79278 1.41159 1029.28861
7 1995 10.01 105.5945055 1057.00100 1.11994 1038.89009 1.41531 1034.06347
8 1995 10.07 106.1458021 1068.88823 1.12546 1049.44817 1.42187 1044.27086
9 1995 10.11 106.6939234 1078.67557 1.13690 1057.92060 1.43591 1052.39688
10 1995 10.16 107.2421530 1089.58027 1.14608 1067.46941 1.44708 1061.58885
11 1995 10.23 107.8010354 1102.80459 1.15643 1079.26895 1.45972 1073.01371
12 1995 10.29 108.3600819 1115.02524 1.16921 1090.05958 1.47543 1083.42881
1 1996 10.32 108.8765842 1123.60635 1.18090 1097.26766 1.48975 1090.27700
2 1996 10.17 109.3991065 1112.58891 1.18871 1085.31977 1.49917 1078.08721
3 1996 10.03 110.3721484 1107.03265 1.17576 1078.72393 1.48241 1071.22084
4 1996 9.94 110.9029964 1102.37578 1.16862 1073.01753 1.47296 1065.24166
5 1996 9.87 111.4385441 1099.89843 1.16244 1069.44372 1.46474 1061.38301
6 1996 9.94 111.9826997 1113.10804 1.15856 1081.12900 1.45944 1072.67062
7 1996 9.92 112.4819134 1115.82058 1.17122 1082.59239 1.47496 1073.80966
8 1996 9.85 112.9778256 1112.83158 1.17281 1078.51960 1.47652 1069.45667
9 1996 9.96 113.5261508 1130.72046 1.16840 1094.68851 1.47054 1085.17776
10 1996 10.11 114.0699886 1153.24758 1.18591 1115.31187 1.49216 1105.30539
11 1996 10.21 114.6062628 1170.12994 1.20825 1130.43063 1.51983 1119.96609
12 1996 10.09 115.1503875 1161.86741 1.22463 1121.22379 1.53999 1110.51778
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 16.19%
GROSS ANNUAL RETURN = 5.58%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1121.22 1073.57
TOTAL RETURN 12.12% 7.36%
AVERAGE ANNUAL RETURN 4.23% 2.60%
WITH DEATH BENEFIT CHARGE
ERV 1110.52 1063.32
TOTAL RETURN 11.05% 6.33%
AVERAGE ANNUAL RETURN 3.87% 2.25%
<PAGE>
Federated Prime Money
12/1996
Assume ($10000 @ $10.00 on 11/21/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
10/94 0.0000000000 1.00 0.000 100.000000
11/94 0.0012659720 1.00 0.127 100.126597
12/94 0.0037707980 1.00 0.378 100.504154
1/95 0.0037829400 1.00 0.380 100.884356
2/95 0.0038735110 1.00 0.391 101.275132
3/95 0.0044113260 1.00 0.447 101.721890
4/95 0.0042677160 1.00 0.434 102.156010
5/95 0.0045457280 1.00 0.464 102.620383
6/95 0.0043985090 1.00 0.451 103.071760
7/95 0.0043850150 1.00 0.452 103.523731
8/95 0.0043262630 1.00 0.448 103.971602
9/95 0.0041606740 1.00 0.433 104.404194
10/95 0.0042481520 1.00 0.444 104.847719
11/95 0.0041265140 1.00 0.433 105.280375
12/95 0.0042405070 1.00 0.446 105.726817
1/96 0.0039644280 1.00 0.419 106.145963
2/96 0.0036463730 1.00 0.387 106.533011
3/96 0.0038803070 1.00 0.413 106.946392
4/96 0.0037531920 1.00 0.401 107.347782
5/96 0.0038792420 1.00 0.416 107.764210
6/96 0.0037639920 1.00 0.406 108.169834
7/96 0.0039246140 1.00 0.425 108.594359
8/96 0.0039447460 1.00 0.428 109.022736
9/96 0.0035630470 1.00 0.388 109.411189
10/96 0.0039363050 1.00 0.431 109.841865
11/96 0.0038677480 1.00 0.425 110.266705
12/96 0.0039950720 1.00 0.441 110.707229
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 1.00 105.7268168 105.72682 1000.00000 1000.00000
1 1996 1.00 106.1459631 106.14596 1.08333 1002.88109 1.37503 1002.58939
2 1996 1.00 106.5330109 106.53301 1.08645 1005.45152 1.37859 1004.86662
3 1996 1.00 106.9463917 106.94639 1.08924 1008.26374 1.38173 1007.38408
4 1996 1.00 107.3477820 107.34778 1.09229 1010.95566 1.38519 1009.77980
5 1996 1.00 107.7642101 107.76421 1.09520 1013.78220 1.38848 1012.30850
6 1996 1.00 108.1698337 108.16983 1.09826 1016.49981 1.39196 1014.72686
7 1996 1.00 108.5943585 108.59436 1.10121 1019.38797 1.39528 1017.31399
8 1996 1.00 109.0227357 109.02274 1.10434 1022.30486 1.39884 1019.92820
9 1996 1.00 109.4111888 109.41119 1.10750 1024.83988 1.40244 1022.15981
10 1996 1.00 109.8418646 109.84186 1.11024 1027.76372 1.40550 1024.77784
11 1996 1.00 110.2667053 110.26671 1.11341 1030.62544 1.40910 1027.33232
12 1996 1.00 110.7072287 110.70723 1.11651 1033.62635 1.41262 1030.02397
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.71%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1033.63 972.13
TOTAL RETURN 3.36% -2.79%
WITH DEATH BENEFIT CHARGE
ERV 1030.02 968.74
TOTAL RETURN 3.00% -3.13%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 1.00 105.7268168 105.72682 1000.00000 1000.00000
1 1996 1.00 106.1459631 106.14596 1.08333 1002.88109 1.37503 1002.58939
2 1996 1.00 106.5330109 106.53301 1.08645 1005.45152 1.37859 1004.86662
3 1996 1.00 106.9463917 106.94639 1.08924 1008.26374 1.38173 1007.38408
4 1996 1.00 107.3477820 107.34778 1.09229 1010.95566 1.38519 1009.77980
5 1996 1.00 107.7642101 107.76421 1.09520 1013.78220 1.38848 1012.30850
6 1996 1.00 108.1698337 108.16983 1.09826 1016.49981 1.39196 1014.72686
7 1996 1.00 108.5943585 108.59436 1.10121 1019.38797 1.39528 1017.31399
8 1996 1.00 109.0227357 109.02274 1.10434 1022.30486 1.39884 1019.92820
9 1996 1.00 109.4111888 109.41119 1.10750 1024.83988 1.40244 1022.15981
10 1996 1.00 109.8418646 109.84186 1.11024 1027.76372 1.40550 1024.77784
11 1996 1.00 110.2667053 110.26671 1.11341 1030.62544 1.40910 1027.33232
12 1996 1.00 110.7072287 110.70723 1.11651 1033.62635 1.41262 1030.02397
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.71%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1033.63 972.13
TOTAL RETURN 3.36% -2.79%
WITH DEATH BENEFIT CHARGE
ERV 1030.02 968.74
TOTAL RETURN 3.00% -3.13%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10 1994 1.00 100.0000000 100.00000 1000.00000 1000.00000
11 1994 1.00 100.1265972 100.12660 1.08333 1000.18264 1.37503 999.89094
12 1994 1.00 100.5041544 100.50415 1.08353 1002.87059 1.37488 1002.28644
1 1995 1.00 100.8843556 100.88436 1.08644 1005.57795 1.37818 1004.69985
2 1995 1.00 101.2751322 101.27513 1.08938 1008.38369 1.38150 1007.21007
3 1995 1.00 101.7218898 101.72189 1.09242 1011.73959 1.38495 1010.26826
4 1995 1.00 102.1560100 102.15601 1.09605 1014.96135 1.38915 1013.19064
5 1995 1.00 102.6203834 102.62038 1.09954 1018.47555 1.39317 1016.40316
6 1995 1.00 103.0717601 103.07176 1.10335 1021.85197 1.39759 1019.47623
7 1995 1.00 103.5237313 103.52373 1.10701 1025.22580 1.40181 1022.54484
8 1995 1.00 103.9716022 103.97160 1.11066 1028.55054 1.40603 1025.56260
9 1995 1.00 104.4041941 104.40419 1.11426 1031.71574 1.41018 1028.41945
10 1995 1.00 104.8477190 104.84772 1.11769 1034.98093 1.41411 1031.37422
11 1995 1.00 105.2803746 105.28037 1.12123 1038.13057 1.41817 1034.21203
12 1995 1.00 105.7268168 105.72682 1.12464 1041.40812 1.42208 1037.17554
1 1996 1.00 106.1459631 106.14596 1.12819 1044.40852 1.42615 1039.86119
2 1996 1.00 106.5330109 106.53301 1.13144 1047.08538 1.42984 1042.22307
3 1996 1.00 106.9463917 106.94639 1.13434 1050.01405 1.43309 1044.83413
4 1996 1.00 107.3477820 107.34778 1.13752 1052.81744 1.43668 1047.31891
5 1996 1.00 107.7642101 107.76421 1.14055 1055.76102 1.44010 1049.94161
6 1996 1.00 108.1698337 108.16983 1.14374 1058.59116 1.44370 1052.44988
7 1996 1.00 108.5943585 108.59436 1.14681 1061.59891 1.44715 1055.13318
8 1996 1.00 109.0227357 109.02274 1.15007 1064.63658 1.45084 1057.84457
9 1996 1.00 109.4111888 109.41119 1.15336 1067.27658 1.45457 1060.15915
10 1996 1.00 109.8418646 109.84186 1.15622 1070.32149 1.45775 1062.87451
11 1996 1.00 110.2667053 110.26671 1.15951 1073.30171 1.46149 1065.52395
12 1996 1.00 110.7072287 110.70723 1.16274 1076.42688 1.46513 1068.31566
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 10.71%
GROSS ANNUAL RETURN = 4.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1076.43 1030.68
TOTAL RETURN 7.64% 3.07%
AVERAGE ANNUAL RETURN 3.55% 1.44%
WITH DEATH BENEFIT CHARGE
ERV 1068.32 1022.91
TOTAL RETURN 6.83% 2.29%
AVERAGE ANNUAL RETURN 3.18% 1.08%
<PAGE>
Fidelity Asset Manager Growth
12/1996
Assume ($10000 @ $10.00 on 1/ 3/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.5300000000 11.72 4.522 104.522184
2/96 0.4200000000 11.62 3.778 108.300095
12/96 0.5400000000 13.21 4.427 112.727199
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.78 104.5221843 1231.27133 1000.00000 1000.00000
1 1996 12.05 104.5221843 1259.49232 1.08333 1021.83687 1.37503 1021.54517
2 1996 11.67 108.3000946 1263.86210 1.10699 1024.27512 1.40466 1023.68474
3 1996 11.88 108.3000946 1286.60512 1.10963 1041.59718 1.40760 1040.69820
4 1996 12.16 108.3000946 1316.92915 1.12840 1065.01821 1.43099 1063.79545
5 1996 12.35 108.3000946 1337.50617 1.15377 1080.50535 1.46275 1078.95450
6 1996 12.40 108.3000946 1342.92117 1.17055 1083.70932 1.48360 1081.83914
7 1996 12.09 108.3000946 1309.34814 1.17402 1055.44257 1.48756 1053.30559
8 1996 12.18 108.3000946 1319.09515 1.14340 1062.15606 1.44833 1059.69825
9 1996 12.68 108.3000946 1373.24520 1.15067 1104.60786 1.45712 1101.74270
10 1996 13.05 108.3000946 1413.31623 1.19666 1135.64345 1.51493 1132.37641
11 1996 13.90 108.3000946 1505.37131 1.23028 1208.38228 1.55706 1204.57567
12 1996 13.10 112.7271991 1476.72631 1.30908 1184.07946 1.65633 1179.99803
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 19.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1184.08 1113.63
TOTAL RETURN 18.41% 11.36%
WITH DEATH BENEFIT CHARGE
ERV 1180.00 1109.79
TOTAL RETURN 18.00% 10.98%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.78 104.5221843 1231.27133 1000.00000 1000.00000
1 1996 12.05 104.5221843 1259.49232 1.08333 1021.83687 1.37503 1021.54517
2 1996 11.67 108.3000946 1263.86210 1.10699 1024.27512 1.40466 1023.68474
3 1996 11.88 108.3000946 1286.60512 1.10963 1041.59718 1.40760 1040.69820
4 1996 12.16 108.3000946 1316.92915 1.12840 1065.01821 1.43099 1063.79545
5 1996 12.35 108.3000946 1337.50617 1.15377 1080.50535 1.46275 1078.95450
6 1996 12.40 108.3000946 1342.92117 1.17055 1083.70932 1.48360 1081.83914
7 1996 12.09 108.3000946 1309.34814 1.17402 1055.44257 1.48756 1053.30559
8 1996 12.18 108.3000946 1319.09515 1.14340 1062.15606 1.44833 1059.69825
9 1996 12.68 108.3000946 1373.24520 1.15067 1104.60786 1.45712 1101.74270
10 1996 13.05 108.3000946 1413.31623 1.19666 1135.64345 1.51493 1132.37641
11 1996 13.90 108.3000946 1505.37131 1.23028 1208.38228 1.55706 1204.57567
12 1996 13.10 112.7271991 1476.72631 1.30908 1184.07946 1.65633 1179.99803
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 19.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1184.08 1113.63
TOTAL RETURN 18.41% 11.36%
WITH DEATH BENEFIT CHARGE
ERV 1180.00 1109.79
TOTAL RETURN 18.00% 10.98%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 10.02 100.0000000 1002.00000 1.08333 1000.91667 1.37503 1000.62497
2 1995 10.17 100.0000000 1017.00000 1.08433 1014.81612 1.37589 1014.22849
3 1995 10.31 100.0000000 1031.00000 1.09938 1027.68668 1.39460 1026.79574
4 1995 10.58 100.0000000 1058.00000 1.11333 1053.48658 1.41188 1052.27376
5 1995 10.73 100.0000000 1073.00000 1.14128 1067.28131 1.44691 1065.74566
6 1995 11.16 100.0000000 1116.00000 1.15622 1108.89592 1.46544 1106.98951
7 1995 11.57 100.0000000 1157.00000 1.20130 1148.43362 1.52215 1146.13633
8 1995 12.09 100.0000000 1209.00000 1.24414 1198.80448 1.57598 1196.07210
9 1995 12.27 100.0000000 1227.00000 1.29870 1215.35398 1.64464 1212.23499
10 1995 11.80 100.0000000 1180.00000 1.31663 1167.48344 1.66686 1164.13370
11 1995 12.01 100.0000000 1201.00000 1.26477 1186.99592 1.60072 1183.25061
12 1995 11.78 104.5221843 1231.27133 1.28591 1215.62836 1.62701 1211.44756
1 1996 12.05 104.5221843 1259.49232 1.31693 1242.17388 1.66578 1237.54840
2 1996 11.67 108.3000946 1263.86210 1.34569 1245.13789 1.70167 1240.14038
3 1996 11.88 108.3000946 1286.60512 1.34890 1266.19507 1.70523 1260.75129
4 1996 12.16 108.3000946 1316.92915 1.37171 1294.66634 1.73358 1288.73240
5 1996 12.35 108.3000946 1337.50617 1.40256 1313.49295 1.77205 1307.09679
6 1996 12.40 108.3000946 1342.92117 1.42295 1317.38778 1.79730 1310.59138
7 1996 12.09 108.3000946 1309.34814 1.42717 1283.02592 1.80211 1276.02449
8 1996 12.18 108.3000946 1319.09515 1.38994 1291.18703 1.75458 1283.76885
9 1996 12.68 108.3000946 1373.24520 1.39879 1342.79264 1.76522 1334.70350
10 1996 13.05 108.3000946 1413.31623 1.45469 1380.52039 1.83526 1371.81463
11 1996 13.90 108.3000946 1505.37131 1.49556 1468.94377 1.88629 1459.28025
12 1996 13.10 112.7271991 1476.72631 1.59136 1439.40057 2.00656 1429.50573
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 47.67%
GROSS ANNUAL RETURN = 21.62%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1439.40 1365.99
TOTAL RETURN 43.94% 36.60%
AVERAGE ANNUAL RETURN 20.07% 16.95%
WITH DEATH BENEFIT CHARGE
ERV 1429.51 1356.60
TOTAL RETURN 42.95% 35.66%
AVERAGE ANNUAL RETURN 19.65% 16.55%
<PAGE>
Fidelity Contrafund
12/1996
Assume ($10000 @ $10.00 on 1/ 3/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.1800000000 13.64 1.320 101.319648
2/96 0.1300000000 13.78 0.956 102.275494
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 13.78 101.3196481 1396.18475 1000.00000 1000.00000
1 1996 13.89 101.3196481 1407.32991 1.08333 1006.89925 1.37503 1006.60755
2 1996 13.81 102.2754938 1412.42457 1.09081 1009.45351 1.38412 1008.86744
3 1996 14.26 102.2754938 1458.44854 1.09357 1041.25306 1.38723 1040.35424
4 1996 14.73 102.2754938 1506.51802 1.12802 1074.44403 1.43052 1073.21310
5 1996 14.90 102.2754938 1523.90486 1.16398 1085.68029 1.47570 1084.12342
6 1996 14.78 102.2754938 1511.63180 1.17615 1075.76040 1.49071 1073.90152
7 1996 14.09 102.2754938 1441.06171 1.16541 1024.37343 1.47665 1022.29009
8 1996 14.63 102.2754938 1496.29047 1.10974 1062.52286 1.40568 1060.06373
9 1996 15.25 102.2754938 1559.70128 1.15107 1106.40011 1.45762 1103.53020
10 1996 15.72 102.2754938 1607.77076 1.19860 1139.30039 1.51739 1136.02325
11 1996 16.66 102.2754938 1703.90973 1.23424 1206.19226 1.56207 1202.39132
12 1996 16.56 102.2754938 1693.68218 1.30671 1197.64550 1.65333 1193.52076
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.31%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1197.65 1126.39
TOTAL RETURN 19.76% 12.64%
WITH DEATH BENEFIT CHARGE
ERV 1193.52 1122.51
TOTAL RETURN 19.35% 12.25%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 13.78 101.3196481 1396.18475 1000.00000 1000.00000
1 1996 13.89 101.3196481 1407.32991 1.08333 1006.89925 1.37503 1006.60755
2 1996 13.81 102.2754938 1412.42457 1.09081 1009.45351 1.38412 1008.86744
3 1996 14.26 102.2754938 1458.44854 1.09357 1041.25306 1.38723 1040.35424
4 1996 14.73 102.2754938 1506.51802 1.12802 1074.44403 1.43052 1073.21310
5 1996 14.90 102.2754938 1523.90486 1.16398 1085.68029 1.47570 1084.12342
6 1996 14.78 102.2754938 1511.63180 1.17615 1075.76040 1.49071 1073.90152
7 1996 14.09 102.2754938 1441.06171 1.16541 1024.37343 1.47665 1022.29009
8 1996 14.63 102.2754938 1496.29047 1.10974 1062.52286 1.40568 1060.06373
9 1996 15.25 102.2754938 1559.70128 1.15107 1106.40011 1.45762 1103.53020
10 1996 15.72 102.2754938 1607.77076 1.19860 1139.30039 1.51739 1136.02325
11 1996 16.66 102.2754938 1703.90973 1.23424 1206.19226 1.56207 1202.39132
12 1996 16.56 102.2754938 1693.68218 1.30671 1197.64550 1.65333 1193.52076
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.31%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1197.65 1126.39
TOTAL RETURN 19.76% 12.64%
WITH DEATH BENEFIT CHARGE
ERV 1193.52 1122.51
TOTAL RETURN 19.35% 12.25%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 9.87 100.0000000 987.00000 1.08333 985.91667 1.37503 985.62497
2 1995 10.37 100.0000000 1037.00000 1.06808 1034.79371 1.35527 1034.20004
3 1995 10.89 100.0000000 1089.00000 1.12103 1085.56205 1.42206 1084.63758
4 1995 11.48 100.0000000 1148.00000 1.17603 1143.19976 1.49141 1141.90982
5 1995 11.73 100.0000000 1173.00000 1.23847 1166.85676 1.57016 1165.20703
6 1995 12.50 100.0000000 1250.00000 1.26409 1242.18940 1.60220 1240.09327
7 1995 13.47 100.0000000 1347.00000 1.34571 1337.23759 1.70517 1334.61934
8 1995 13.64 100.0000000 1364.00000 1.44867 1352.66571 1.83515 1349.62794
9 1995 13.94 100.0000000 1394.00000 1.46539 1380.95104 1.85578 1377.45606
10 1995 13.65 100.0000000 1365.00000 1.49603 1350.72647 1.89405 1346.90618
11 1995 13.90 100.0000000 1390.00000 1.46329 1374.00176 1.85204 1369.72275
12 1995 13.78 101.3196481 1396.18475 1.48850 1378.62683 1.88341 1373.93387
1 1996 13.89 101.3196481 1407.32991 1.49351 1388.13832 1.88920 1383.01220
2 1996 13.81 102.2754938 1412.42457 1.50382 1391.65969 1.90169 1386.11714
3 1996 14.26 102.2754938 1458.44854 1.50763 1435.49940 1.90596 1429.37792
4 1996 14.73 102.2754938 1506.51802 1.55512 1481.25737 1.96544 1474.52382
5 1996 14.90 102.2754938 1523.90486 1.60470 1496.74797 2.02752 1489.51388
6 1996 14.78 102.2754938 1511.63180 1.62148 1483.07215 2.04813 1475.46967
7 1996 14.09 102.2754938 1441.06171 1.60666 1412.22870 2.02882 1404.55898
8 1996 14.63 102.2754938 1496.29047 1.52991 1464.82252 1.93132 1456.45746
9 1996 15.25 102.2754938 1559.70128 1.58689 1525.31287 2.00268 1516.17752
10 1996 15.72 102.2754938 1607.77076 1.65242 1570.67009 2.08479 1560.82082
11 1996 16.66 102.2754938 1703.90973 1.70156 1662.88901 2.14618 1652.00616
12 1996 16.56 102.2754938 1693.68218 1.80146 1651.10622 2.27156 1639.81859
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 69.37%
GROSS ANNUAL RETURN = 30.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1651.11 1566.90
TOTAL RETURN 65.11% 56.69%
AVERAGE ANNUAL RETURN 28.63% 25.29%
WITH DEATH BENEFIT CHARGE
ERV 1639.82 1556.19
TOTAL RETURN 63.98% 55.62%
AVERAGE ANNUAL RETURN 28.19% 24.86%
<PAGE>
Fidelity Equity Income Fund
12/1996
Assume ($10000 @ $10.00 on 10/ 9/1986)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
3/87 0.0700000000 11.62 0.602 100.602410
6/87 0.1200000000 11.72 1.030 101.632468
9/87 0.1200000000 11.80 1.034 102.666019
12/87 0.2300000000 9.45 2.499 105.164769
3/88 0.1400000000 10.60 1.389 106.553737
6/88 0.1400000000 10.89 1.370 107.923574
9/88 0.1400000000 10.87 1.390 109.313574
12/88 0.1100000000 10.95 1.098 110.411701
3/89 0.2200000000 11.56 2.101 112.512962
6/89 0.1300000000 12.49 1.171 113.684034
9/89 0.1300000000 12.93 1.143 114.827029
12/89 0.1300000000 12.03 1.241 116.067886
2/90 0.3900000000 11.20 4.042 120.109536
3/90 0.2000000000 11.05 2.174 122.283464
6/90 0.1300000000 11.24 1.414 123.697774
9/90 0.1300000000 9.67 1.663 125.360723
12/90 0.1300000000 9.57 1.703 127.063638
3/91 0.2300000000 10.60 2.757 129.820679
6/91 0.1200000000 11.10 1.403 131.224146
9/91 0.1200000000 11.38 1.384 132.607880
12/91 0.1200000000 11.18 1.423 134.031220
3/92 0.1200000000 12.33 1.304 135.335660
6/92 0.1000000000 12.45 1.087 136.422694
9/92 0.1000000000 12.56 1.086 137.508862
12/92 0.1000000000 13.29 1.035 138.543541
3/93 0.1000000000 14.36 0.965 139.508329
6/93 0.1000000000 14.40 0.969 140.477137
9/93 0.1000000000 15.18 0.925 141.402546
12/93 0.0900000000 15.29 0.832 142.234870
2/94 0.7700000000 15.04 7.282 149.516841
3/94 0.1000000000 14.97 0.999 150.515618
6/94 0.0900000000 14.96 0.906 151.421126
9/94 0.0900000000 15.79 0.863 152.284198
12/94 0.0900000000 15.34 0.893 153.177651
2/95 0.7800000000 15.11 7.907 161.084903
3/95 0.1000000000 15.60 1.033 162.117498
6/95 0.1000000000 16.78 0.966 163.083633
9/95 0.1000000000 18.32 0.890 163.973828
12/95 0.1000000000 19.01 0.863 164.836394
2/96 0.8900000000 18.86 7.779 172.614994
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 19.27 164.8363940 3176.39731 1000.00000 1000.00000
1 1996 19.83 164.8363940 3268.70569 1.08333 1027.97738 1.37503 1027.68568
2 1996 19.00 172.6149937 3279.68488 1.11364 1030.31659 1.41310 1029.72445
3 1996 19.20 172.6149937 3314.20788 1.11618 1040.04585 1.41591 1039.14775
4 1996 19.45 172.6149937 3357.36163 1.12672 1052.46140 1.42886 1051.24946
5 1996 19.66 172.6149937 3393.61078 1.14017 1062.68457 1.44550 1061.15421
6 1996 19.48 172.6149937 3362.54008 1.15124 1051.80377 1.45912 1049.97953
7 1996 18.53 172.6149937 3198.55583 1.13945 999.36998 1.44376 997.33041
8 1996 18.91 172.6149937 3264.14953 1.08265 1018.78170 1.37136 1016.41159
9 1996 19.72 172.6149937 3403.96768 1.10368 1061.31700 1.39760 1058.55145
10 1996 20.04 172.6149937 3459.20447 1.14976 1077.38942 1.45554 1074.27321
11 1996 21.38 172.6149937 3690.50857 1.16717 1148.26326 1.47716 1144.62869
12 1996 21.03 172.6149937 3630.09332 1.24395 1128.22173 1.57390 1124.31671
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1128.22 1061.09
TOTAL RETURN 12.82% 6.11%
WITH DEATH BENEFIT CHARGE
ERV 1124.32 1057.42
TOTAL RETURN 12.43% 5.74%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 19.27 164.8363940 3176.39731 1000.00000 1000.00000
1 1996 19.83 164.8363940 3268.70569 1.08333 1027.97738 1.37503 1027.68568
2 1996 19.00 172.6149937 3279.68488 1.11364 1030.31659 1.41310 1029.72445
3 1996 19.20 172.6149937 3314.20788 1.11618 1040.04585 1.41591 1039.14775
4 1996 19.45 172.6149937 3357.36163 1.12672 1052.46140 1.42886 1051.24946
5 1996 19.66 172.6149937 3393.61078 1.14017 1062.68457 1.44550 1061.15421
6 1996 19.48 172.6149937 3362.54008 1.15124 1051.80377 1.45912 1049.97953
7 1996 18.53 172.6149937 3198.55583 1.13945 999.36998 1.44376 997.33041
8 1996 18.91 172.6149937 3264.14953 1.08265 1018.78170 1.37136 1016.41159
9 1996 19.72 172.6149937 3403.96768 1.10368 1061.31700 1.39760 1058.55145
10 1996 20.04 172.6149937 3459.20447 1.14976 1077.38942 1.45554 1074.27321
11 1996 21.38 172.6149937 3690.50857 1.16717 1148.26326 1.47716 1144.62869
12 1996 21.03 172.6149937 3630.09332 1.24395 1128.22173 1.57390 1124.31671
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1128.22 1061.09
TOTAL RETURN 12.82% 6.11%
WITH DEATH BENEFIT CHARGE
ERV 1124.32 1057.42
TOTAL RETURN 12.43% 5.74%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 15.44 142.2348697 2196.10639 1000.00000 1000.00000
1 1994 16.12 142.2348697 2292.82610 1.08333 1042.95812 1.37503 1042.66642
2 1994 14.94 149.5168411 2233.78161 1.12987 1014.97015 1.43370 1014.38214
3 1994 14.22 150.5156176 2140.33208 1.09955 971.40966 1.39481 970.55098
4 1994 14.71 150.5156176 2214.08473 1.05236 1003.83063 1.33454 1002.66018
5 1994 14.85 150.5156176 2235.15692 1.08748 1012.29694 1.37869 1010.82414
6 1994 14.67 151.4211260 2221.34792 1.09665 1004.94622 1.38992 1003.18926
7 1994 15.16 151.4211260 2295.54427 1.08869 1037.42424 1.37942 1035.31787
8 1994 15.94 151.4211260 2413.65275 1.12388 1089.67707 1.42360 1087.16261
9 1994 15.59 152.2841976 2374.11064 1.18048 1070.64475 1.49488 1067.85708
10 1994 15.91 152.2841976 2422.84158 1.15987 1091.46092 1.46834 1088.30755
11 1994 15.39 152.2841976 2343.65380 1.18242 1054.60536 1.49646 1051.24102
12 1994 15.35 153.1776512 2351.27695 1.14249 1056.89316 1.44549 1053.21487
1 1995 15.59 153.1776512 2388.03958 1.14497 1072.27291 1.44821 1068.23387
2 1995 15.39 161.0849025 2479.09665 1.16163 1111.99755 1.46886 1107.49727
3 1995 15.82 162.1174981 2564.69882 1.20466 1149.18969 1.52285 1144.21584
4 1995 16.26 162.1174981 2636.03052 1.24496 1179.90703 1.57333 1174.46646
5 1995 16.75 162.1174981 2715.46809 1.27823 1214.18565 1.61493 1208.24443
6 1995 16.89 163.0836333 2754.48257 1.31537 1230.31509 1.66138 1223.94250
7 1995 17.54 163.0836333 2860.48693 1.33284 1276.33008 1.68296 1269.36212
8 1995 17.76 163.0836333 2896.36533 1.38269 1290.95609 1.74542 1283.53801
9 1995 18.25 163.9738278 2992.52236 1.39854 1332.41627 1.76491 1324.38555
10 1995 18.04 163.9738278 2958.08785 1.44345 1315.64090 1.82107 1307.32497
11 1995 18.82 163.9738278 3085.98744 1.42528 1371.10032 1.79762 1362.05249
12 1995 19.27 164.8363940 3176.39731 1.48536 1409.78395 1.87287 1400.08354
1 1996 19.83 164.8363940 3268.70569 1.52727 1449.22602 1.92516 1438.84581
2 1996 19.00 172.6149937 3279.68488 1.56999 1452.52380 1.97846 1441.70026
3 1996 19.20 172.6149937 3314.20788 1.57357 1466.23996 1.98239 1454.89367
4 1996 19.45 172.6149937 3357.36163 1.58843 1483.74320 2.00053 1471.83707
5 1996 19.66 172.6149937 3393.61078 1.60739 1498.15566 2.02382 1485.70454
6 1996 19.48 172.6149937 3362.54008 1.62300 1482.81607 2.04289 1470.05906
7 1996 18.53 172.6149937 3198.55583 1.60638 1408.89576 2.02138 1396.34589
8 1996 18.91 172.6149937 3264.14953 1.52630 1436.26209 1.92002 1423.06113
9 1996 19.72 172.6149937 3403.96768 1.55595 1496.22768 1.95676 1482.06046
10 1996 20.04 172.6149937 3459.20447 1.62091 1518.88632 2.03788 1504.07224
11 1996 21.38 172.6149937 3690.50857 1.64546 1618.80312 2.06815 1602.57579
12 1996 21.03 172.6149937 3630.09332 1.75370 1590.54890 2.20360 1574.13732
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 65.30%
GROSS ANNUAL RETURN = 18.24%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1590.55 1522.95
TOTAL RETURN 59.05% 52.30%
AVERAGE ANNUAL RETURN 16.73% 15.05%
WITH DEATH BENEFIT CHARGE
ERV 1574.14 1507.24
TOTAL RETURN 57.41% 50.72%
AVERAGE ANNUAL RETURN 16.33% 14.66%
<TABLE>
<CAPTION>
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1991 11.85 134.0312203 1588.26996 1000.00000 1000.00000
1 1992 12.01 134.0312203 1609.71496 1.08333 1012.41878 1.37503 1012.12708
2 1992 12.40 134.0312203 1661.98713 1.09679 1044.19820 1.39171 1043.60211
3 1992 12.13 135.3356604 1641.62156 1.13121 1030.27165 1.43499 1029.37908
4 1992 12.51 135.3356604 1693.04911 1.11613 1061.43114 1.41543 1060.21131
5 1992 12.61 135.3356604 1706.58268 1.14988 1068.76591 1.45783 1067.22839
6 1992 12.40 136.4226938 1691.64140 1.15783 1058.25095 1.46747 1056.41724
7 1992 12.78 136.4226938 1743.48203 1.14644 1089.53478 1.45261 1087.33871
8 1992 12.50 136.4226938 1705.28367 1.18033 1064.48358 1.49513 1062.02083
9 1992 12.53 137.5088618 1722.98604 1.15319 1074.38068 1.46031 1071.58524
10 1992 12.68 137.5088618 1743.61237 1.16391 1086.07847 1.47347 1082.94001
11 1992 13.14 137.5088618 1806.86644 1.17658 1124.30220 1.48908 1120.73740
12 1992 13.40 138.5435409 1856.48345 1.21799 1153.95783 1.54105 1149.97207
1 1993 13.80 138.5435409 1911.90087 1.25012 1187.15421 1.58125 1182.71835
2 1993 14.11 138.5435409 1954.84936 1.28608 1212.53608 1.62628 1207.66038
3 1993 14.43 139.5083288 2013.10519 1.31358 1247.35689 1.66057 1241.98890
4 1993 14.37 139.5083288 2004.73469 1.35130 1240.81907 1.70778 1235.11693
5 1993 14.63 139.5083288 2041.00685 1.34422 1261.92530 1.69833 1255.76588
6 1993 14.70 140.4771367 2065.01391 1.36709 1275.40144 1.72672 1268.80993
7 1993 14.90 140.4771367 2093.10934 1.38168 1291.37215 1.74466 1284.32800
8 1993 15.47 140.4771367 2173.18130 1.39899 1339.37465 1.76599 1331.69401
9 1993 15.31 141.4025460 2164.87298 1.45099 1332.80308 1.83112 1324.77167
10 1993 15.45 141.4025460 2184.66934 1.44387 1343.54683 1.82161 1335.06424
11 1993 15.18 141.4025460 2146.49065 1.45551 1318.61186 1.83576 1309.89726
12 1993 15.44 142.2348697 2196.10639 1.42850 1347.66283 1.80115 1338.37414
1 1994 16.12 142.2348697 2292.82610 1.45997 1405.55589 1.84031 1395.47777
2 1994 14.94 149.5168411 2233.78161 1.52269 1367.83755 1.91883 1357.62282
3 1994 14.22 150.5156176 2140.33208 1.48182 1309.13269 1.86678 1298.96034
4 1994 14.71 150.5156176 2214.08473 1.41823 1352.82523 1.78611 1341.93446
5 1994 14.85 150.5156176 2235.15692 1.46556 1364.23496 1.84520 1352.86090
6 1994 14.67 151.4211260 2221.34792 1.47792 1354.32867 1.86023 1342.64257
7 1994 15.16 151.4211260 2295.54427 1.46719 1398.09809 1.84618 1385.64267
8 1994 15.94 151.4211260 2413.65275 1.51461 1468.51729 1.90530 1455.03032
9 1994 15.59 152.2841976 2374.11064 1.59089 1442.86814 2.00072 1429.19231
10 1994 15.91 152.2841976 2422.84158 1.56311 1470.92131 1.96519 1456.56269
11 1994 15.39 152.2841976 2343.65380 1.59350 1421.25245 2.00282 1406.95380
12 1994 15.35 153.1776512 2351.27695 1.53969 1424.33563 1.93461 1409.59555
1 1995 15.59 153.1776512 2388.03958 1.54303 1445.06234 1.93824 1429.69659
2 1995 15.39 161.0849025 2479.09665 1.56548 1498.59776 1.96588 1482.24571
3 1995 15.82 162.1174981 2564.69882 1.62348 1548.72024 2.03814 1531.38890
4 1995 16.26 162.1174981 2636.03052 1.67778 1590.11685 2.10571 1571.87555
5 1995 16.75 162.1174981 2715.46809 1.72263 1636.31287 2.16138 1617.08311
6 1995 16.89 163.0836333 2754.48257 1.77267 1658.04992 2.22354 1638.09300
7 1995 17.54 163.0836333 2860.48693 1.79622 1720.06261 2.25243 1698.88145
8 1995 17.76 163.0836333 2896.36533 1.86340 1739.77354 2.33602 1717.85409
9 1995 18.25 163.9738278 2992.52236 1.88475 1795.64788 2.36211 1772.52337
10 1995 18.04 163.9738278 2958.08785 1.94529 1773.04035 2.43728 1749.68994
11 1995 18.82 163.9738278 3085.98744 1.92079 1847.78094 2.40588 1822.93584
12 1995 19.27 164.8363940 3176.39731 2.00176 1899.91344 2.50660 1873.83561
1 1996 19.83 164.8363940 3268.70569 2.05824 1953.06804 2.57659 1925.71403
2 1996 19.00 172.6149937 3279.68488 2.11582 1957.51234 2.64792 1929.53435
3 1996 19.20 172.6149937 3314.20788 2.12064 1975.99710 2.65317 1947.19206
4 1996 19.45 172.6149937 3357.36163 2.14066 1999.58556 2.67745 1969.86867
5 1996 19.66 172.6149937 3393.61078 2.16622 2019.00870 2.70864 1988.42854
6 1996 19.48 172.6149937 3362.54008 2.18726 1998.33611 2.73416 1967.48904
7 1996 18.53 172.6149937 3198.55583 2.16486 1898.71646 2.70536 1868.83324
8 1996 18.91 172.6149937 3264.14953 2.05694 1935.59703 2.56971 1904.58823
9 1996 19.72 172.6149937 3403.96768 2.09690 2016.41043 2.61887 1983.55140
10 1996 20.04 172.6149937 3459.20447 2.18444 2046.94664 2.72745 2013.01140
11 1996 21.38 172.6149937 3690.50857 2.21753 2181.60080 2.76796 2144.84600
12 1996 21.03 172.6149937 3630.09332 2.36340 2143.52363 2.94923 2106.78469
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 128.56%
GROSS ANNUAL RETURN = 17.98%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2143.52 2088.86
TOTAL RETURN 114.35% 108.89%
AVERAGE ANNUAL RETURN 16.47% 15.87%
WITH DEATH BENEFIT CHARGE
ERV 2106.78 2053.06
TOTAL RETURN 110.68% 105.31%
AVERAGE ANNUAL RETURN 16.07% 15.47%
<TABLE>
<CAPTION>
Return for 10 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1986 10.02 100.0000000 1002.00000 1000.00000 1000.00000
1 1987 11.17 100.0000000 1117.00000 1.08333 1113.68713 1.37503 1113.39543
2 1987 11.43 100.0000000 1143.00000 1.20649 1138.40352 1.53096 1137.78057
3 1987 11.65 100.6024096 1172.01807 1.23327 1166.07163 1.56449 1165.10164
4 1987 11.36 100.6024096 1142.84337 1.26324 1135.78171 1.60205 1134.49706
5 1987 11.43 100.6024096 1149.88554 1.23043 1141.54993 1.55997 1139.92783
6 1987 11.55 101.6324684 1173.85501 1.23668 1164.10896 1.56744 1162.12229
7 1987 11.99 101.6324684 1218.57330 1.26112 1207.19485 1.59796 1204.79566
8 1987 12.32 101.6324684 1252.11201 1.30779 1239.11261 1.65663 1236.29854
9 1987 11.94 102.6660190 1225.83227 1.34237 1211.76333 1.69995 1208.65074
10 1987 9.61 102.6660190 986.62044 1.31274 973.98420 1.66194 971.12982
11 1987 9.18 102.6660190 942.47405 1.05515 929.34808 1.33534 926.34123
12 1987 9.42 105.1647686 990.65212 1.00679 975.84837 1.27375 972.42086
1 1988 10.09 105.1647686 1061.11252 1.05717 1044.19867 1.33711 1040.24744
2 1988 10.59 105.1647686 1113.69490 1.13122 1094.81169 1.43037 1090.36550
3 1988 10.27 106.5537373 1094.30688 1.18605 1074.56636 1.49929 1069.88433
4 1988 10.44 106.5537373 1112.42102 1.16411 1091.18962 1.47113 1086.12307
5 1988 10.58 106.5537373 1127.33854 1.18212 1104.64030 1.49346 1099.19448
6 1988 11.04 107.9235741 1191.47626 1.19669 1166.28996 1.51143 1160.21957
7 1988 11.02 107.9235741 1189.31779 1.26348 1162.91363 1.59534 1156.52238
8 1988 10.88 107.9235741 1174.20849 1.25982 1146.87995 1.59026 1140.23946
9 1988 11.01 109.3135742 1203.54245 1.24245 1174.28874 1.56787 1167.15695
10 1988 11.20 109.3135742 1224.31203 1.27215 1193.28134 1.60488 1185.69374
11 1988 11.02 109.3135742 1204.63559 1.29272 1172.81089 1.63037 1165.00758
12 1988 11.01 110.4117014 1215.63283 1.27055 1182.24706 1.60192 1174.04113
1 1989 11.69 110.4117014 1290.71279 1.28077 1253.98427 1.61435 1244.93796
2 1989 11.68 110.4117014 1289.60867 1.35848 1251.55309 1.71183 1242.16116
3 1989 11.66 112.5129621 1311.90114 1.35585 1271.83187 1.70801 1261.92543
4 1989 12.11 112.5129621 1362.53197 1.37782 1319.53847 1.73519 1308.89234
5 1989 12.47 112.5129621 1403.03664 1.42950 1357.33555 1.79977 1346.00266
6 1989 12.35 113.6840338 1403.99782 1.47045 1356.79498 1.85080 1345.07397
7 1989 13.07 113.6840338 1485.85032 1.46986 1434.42571 1.84952 1421.64172
8 1989 13.28 113.6840338 1509.72397 1.55396 1455.91914 1.95480 1442.52890
9 1989 13.00 114.8270287 1492.75137 1.57725 1437.97418 1.98353 1424.32820
10 1989 12.25 114.8270287 1406.63110 1.55781 1353.45633 1.95850 1340.19692
11 1989 12.32 114.8270287 1414.66899 1.46624 1359.72412 1.84282 1346.01237
12 1989 12.29 116.0678861 1426.47432 1.47303 1369.59790 1.85081 1355.39395
1 1990 11.46 116.0678861 1330.13797 1.48373 1275.61895 1.86371 1261.99427
2 1990 11.14 120.1095357 1338.02023 1.38192 1281.79621 1.73528 1267.73743
3 1990 10.96 122.2834639 1340.22676 1.38861 1282.52141 1.74318 1268.08488
4 1990 10.58 122.2834639 1293.75905 1.38940 1236.66503 1.74366 1222.37478
5 1990 11.28 122.2834639 1379.35747 1.33972 1317.14625 1.68081 1301.56943
6 1990 11.04 123.6977744 1365.62343 1.42691 1302.60473 1.78970 1286.82021
7 1990 10.77 123.6977744 1332.22503 1.41116 1269.33639 1.76942 1253.57964
8 1990 9.91 123.6977744 1225.84494 1.37511 1166.60294 1.72371 1151.75579
9 1990 9.02 125.3607228 1130.75372 1.26382 1074.84341 1.58370 1060.82810
10 1990 8.79 125.3607228 1101.92075 1.16441 1046.27168 1.45867 1032.31949
11 1990 9.42 125.3607228 1180.89801 1.13346 1120.12698 1.41947 1104.88878
12 1990 9.51 127.0636375 1208.37519 1.21347 1144.97667 1.51926 1129.07812
1 1991 10.02 127.0636375 1273.17765 1.24039 1205.13881 1.55252 1188.07553
2 1991 10.71 127.0636375 1360.85156 1.30557 1286.82185 1.63364 1268.25548
3 1991 10.70 129.8206787 1389.08126 1.39406 1312.12181 1.74389 1292.82046
4 1991 10.75 129.8206787 1395.57230 1.42147 1316.83176 1.77767 1297.08401
5 1991 11.34 129.8206787 1472.16650 1.42657 1387.67781 1.78353 1366.48927
6 1991 10.76 131.2241455 1411.97181 1.50332 1329.43442 1.87897 1308.73659
7 1991 11.37 131.2241455 1492.01853 1.44022 1403.36177 1.79956 1381.13121
8 1991 11.61 131.2241455 1523.51233 1.52031 1431.46387 1.89910 1408.38528
9 1991 11.41 132.6078799 1513.05591 1.55075 1420.08846 1.93658 1396.78244
10 1991 11.60 132.6078799 1538.25141 1.53843 1442.19743 1.92062 1418.12112
11 1991 11.10 132.6078799 1471.94747 1.56238 1378.47137 1.94996 1355.04525
12 1991 11.85 134.0312203 1588.26996 1.49334 1485.91345 1.86323 1460.26616
1 1992 12.01 134.0312203 1609.71496 1.60974 1504.36668 2.00791 1477.97492
2 1992 12.40 134.0312203 1661.98713 1.62973 1551.58815 2.03226 1523.93685
3 1992 12.13 135.3356604 1641.62156 1.68089 1530.89450 2.09546 1503.16745
4 1992 12.51 135.3356604 1693.04911 1.65847 1577.19480 2.06691 1548.19070
5 1992 12.61 135.3356604 1706.58268 1.70863 1588.09364 2.12881 1558.43751
6 1992 12.40 136.4226938 1691.64140 1.72043 1572.46932 2.14290 1542.65036
7 1992 12.78 136.4226938 1743.48203 1.70351 1618.95438 2.12120 1587.80393
8 1992 12.50 136.4226938 1705.28367 1.75387 1581.73047 2.18328 1550.83308
9 1992 12.53 137.5088618 1722.98604 1.71354 1596.43670 2.13245 1564.79966
10 1992 12.68 137.5088618 1743.61237 1.72947 1613.81860 2.15165 1581.38065
11 1992 13.14 137.5088618 1806.86644 1.74830 1670.61577 2.17445 1636.57490
12 1992 13.40 138.5435409 1856.48345 1.80983 1714.68146 2.25034 1679.26531
1 1993 13.80 138.5435409 1911.90087 1.85757 1764.00841 2.30905 1727.08359
2 1993 14.11 138.5435409 1954.84936 1.91101 1801.72368 2.37480 1763.50559
3 1993 14.43 139.5083288 2013.10519 1.95187 1853.46438 2.42488 1813.63436
4 1993 14.37 139.5083288 2004.73469 2.00792 1843.74975 2.49381 1803.59946
5 1993 14.63 139.5083288 2041.00685 1.99740 1875.11178 2.48001 1833.75242
6 1993 14.70 140.4771367 2065.01391 2.03137 1895.13615 2.52147 1852.80021
7 1993 14.90 140.4771367 2093.10934 2.05306 1918.86725 2.54766 1875.46071
8 1993 15.47 140.4771367 2173.18130 2.07877 1990.19481 2.57882 1944.62771
9 1993 15.31 141.4025460 2164.87298 2.15604 1980.43002 2.67393 1934.51924
10 1993 15.45 141.4025460 2184.66934 2.14547 1996.39430 2.66003 1949.54913
11 1993 15.18 141.4025460 2146.49065 2.16276 1959.34309 2.68069 1912.79865
12 1993 15.44 142.2348697 2196.10639 2.12262 2002.51033 2.63016 1954.38248
1 1994 16.12 142.2348697 2292.82610 2.16939 2088.53440 2.68734 2037.76898
2 1994 14.94 149.5168411 2233.78161 2.26258 2032.48822 2.80200 1982.49067
3 1994 14.22 150.5156176 2140.33208 2.20186 1945.25787 2.72599 1896.82783
4 1994 14.71 150.5156176 2214.08473 2.10736 2010.18120 2.60820 1959.58149
5 1994 14.85 150.5156176 2235.15692 2.17770 2027.13507 2.69449 1975.53699
6 1994 14.67 151.4211260 2221.34792 2.19606 2012.41518 2.71643 1960.61552
7 1994 15.16 151.4211260 2295.54427 2.18012 2077.45275 2.69591 2023.40710
8 1994 15.94 151.4211260 2413.65275 2.25057 2182.08959 2.78225 2124.73155
9 1994 15.59 152.2841976 2374.11064 2.36393 2143.97718 2.92158 2087.00117
10 1994 15.91 152.2841976 2422.84158 2.32264 2185.66176 2.86970 2126.96922
11 1994 15.39 152.2841976 2343.65380 2.36780 2111.85813 2.92465 2054.52703
12 1994 15.35 153.1776512 2351.27695 2.28785 2116.43947 2.82504 2058.38469
1 1995 15.59 153.1776512 2388.03958 2.29281 2147.23757 2.83035 2087.73756
2 1995 15.39 161.0849025 2479.09665 2.32617 2226.78657 2.87071 2164.47326
3 1995 15.82 162.1174981 2564.69882 2.41235 2301.26423 2.97622 2236.23539
4 1995 16.26 162.1174981 2636.03052 2.49304 2362.77601 3.07490 2295.35668
5 1995 16.75 162.1174981 2715.46809 2.55967 2431.41931 3.15619 2361.37175
6 1995 16.89 163.0836333 2754.48257 2.63404 2463.71867 3.24696 2392.05178
7 1995 17.54 163.0836333 2860.48693 2.66903 2555.86416 3.28915 2480.81909
8 1995 17.76 163.0836333 2896.36533 2.76885 2585.15290 3.41121 2508.52420
9 1995 18.25 163.9738278 2992.52236 2.80058 2668.17734 3.44930 2588.35591
10 1995 18.04 163.9738278 2958.08785 2.89053 2634.58450 3.55908 2555.01301
11 1995 18.82 163.9738278 3085.98744 2.85413 2745.64255 3.51323 2661.97152
12 1995 19.27 164.8363940 3176.39731 2.97445 2823.10693 3.66030 2736.29874
1 1996 19.83 164.8363940 3268.70569 3.05837 2902.09007 3.76250 2812.05504
2 1996 19.00 172.6149937 3279.68488 3.14393 2908.69391 3.86667 2817.63373
3 1996 19.20 172.6149937 3314.20788 3.15108 2936.16066 3.87434 2843.41869
4 1996 19.45 172.6149937 3357.36163 3.18084 2971.21108 3.90980 2876.53257
5 1996 19.66 172.6149937 3393.61078 3.21881 3000.07218 3.95533 2903.63492
6 1996 19.48 172.6149937 3362.54008 3.25008 2969.35450 3.99259 2873.05767
7 1996 18.53 172.6149937 3198.55583 3.21680 2821.32832 3.95055 2728.99394
8 1996 18.91 172.6149937 3264.14953 3.05644 2876.12966 3.75246 2781.20574
9 1996 19.72 172.6149937 3403.96768 3.11581 2996.21137 3.82425 2896.51299
10 1996 20.04 172.6149937 3459.20447 3.24590 3041.58554 3.98280 2939.53243
11 1996 21.38 172.6149937 3690.50857 3.29505 3241.66996 4.04195 3132.04604
12 1996 21.03 172.6149937 3630.09332 3.51181 3185.09059 4.30667 3076.46640
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 262.28%
GROSS ANNUAL RETURN = 13.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 3185.09 3185.09
TOTAL RETURN 218.51% 218.51%
AVERAGE ANNUAL RETURN 12.28% 12.28%
WITH DEATH BENEFIT CHARGE
ERV 3076.47 3076.47
TOTAL RETURN 207.65% 207.65%
AVERAGE ANNUAL RETURN 11.89% 11.89%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9 1986 10.00 100.0000000 1000.00000 1000.00000 1000.00000
10 1986 10.11 100.0000000 1011.00000 1.08333 1009.91667 1.37503 1009.62497
11 1986 10.33 100.0000000 1033.00000 1.09408 1030.79902 1.38827 1030.20678
12 1986 10.02 100.0000000 1002.00000 1.11670 998.74837 1.41657 997.87403
1 1987 11.17 100.0000000 1117.00000 1.08198 1112.29320 1.37211 1111.02838
2 1987 11.43 100.0000000 1143.00000 1.20498 1136.97866 1.52770 1135.36168
3 1987 11.65 100.6024096 1172.01807 1.23173 1164.61213 1.56116 1162.62468
4 1987 11.36 100.6024096 1142.84337 1.26166 1134.36013 1.59865 1132.08516
5 1987 11.43 100.6024096 1149.88554 1.22889 1140.12113 1.55665 1137.50438
6 1987 11.55 101.6324684 1173.85501 1.23513 1162.65193 1.56411 1159.65165
7 1987 11.99 101.6324684 1218.57330 1.25954 1205.68389 1.59456 1202.23430
8 1987 12.32 101.6324684 1252.11201 1.30616 1237.56169 1.65311 1233.67021
9 1987 11.94 102.6660190 1225.83227 1.34069 1210.24664 1.69634 1206.08119
10 1987 9.61 102.6660190 986.62044 1.31110 972.76514 1.65840 969.06523
11 1987 9.18 102.6660190 942.47405 1.05383 928.18487 1.33250 924.37186
12 1987 9.42 105.1647686 990.65212 1.00553 974.62696 1.27104 970.35352
1 1988 10.09 105.1647686 1061.11252 1.05585 1042.89172 1.33427 1038.03590
2 1988 10.59 105.1647686 1113.69490 1.12980 1093.44139 1.42733 1088.04741
3 1988 10.27 106.5537373 1094.30688 1.18456 1073.22140 1.49610 1067.60979
4 1988 10.44 106.5537373 1112.42102 1.16266 1089.82385 1.46800 1083.81400
5 1988 10.58 106.5537373 1127.33854 1.18064 1103.25770 1.49028 1096.85763
6 1988 11.04 107.9235741 1191.47626 1.19520 1164.83019 1.50822 1157.75298
7 1988 11.02 107.9235741 1189.31779 1.26190 1161.45809 1.59195 1154.06365
8 1988 10.88 107.9235741 1174.20849 1.25825 1145.44448 1.58688 1137.81535
9 1988 11.01 109.3135742 1203.54245 1.24090 1172.81897 1.56453 1164.67561
10 1988 11.20 109.3135742 1224.31203 1.27055 1191.78780 1.60147 1183.17299
11 1988 11.02 109.3135742 1204.63559 1.29110 1171.34296 1.62690 1162.53081
12 1988 11.01 110.4117014 1215.63283 1.26895 1180.76732 1.59852 1171.54516
1 1989 11.69 110.4117014 1290.71279 1.27916 1252.41475 1.61091 1242.29126
2 1989 11.68 110.4117014 1289.60867 1.35678 1249.98661 1.70819 1239.52037
3 1989 11.66 112.5129621 1311.90114 1.35415 1270.24001 1.70438 1259.24262
4 1989 12.11 112.5129621 1362.53197 1.37609 1317.88690 1.73150 1306.10967
5 1989 12.47 112.5129621 1403.03664 1.42771 1355.63667 1.79594 1343.14110
6 1989 12.35 113.6840338 1403.99782 1.46861 1355.09677 1.84686 1342.21439
7 1989 13.07 113.6840338 1485.85032 1.46802 1432.63034 1.84559 1418.61935
8 1989 13.28 113.6840338 1509.72397 1.55202 1454.09687 1.95065 1439.46213
9 1989 13.00 114.8270287 1492.75137 1.57527 1436.17437 1.97931 1421.30012
10 1989 12.25 114.8270287 1406.63110 1.55586 1351.76230 1.95433 1337.34770
11 1989 12.32 114.8270287 1414.66899 1.46441 1358.02225 1.83890 1343.15079
12 1989 12.29 116.0678861 1426.47432 1.47119 1367.88367 1.84688 1352.51242
1 1990 11.46 116.0678861 1330.13797 1.48187 1274.02234 1.85975 1259.31131
2 1990 11.14 120.1095357 1338.02023 1.38019 1280.19187 1.73159 1265.04226
3 1990 10.96 122.2834639 1340.22676 1.38687 1280.91617 1.73948 1265.38898
4 1990 10.58 122.2834639 1293.75905 1.38766 1235.11718 1.73995 1219.77605
5 1990 11.28 122.2834639 1379.35747 1.33804 1315.49767 1.67723 1298.80233
6 1990 11.04 123.6977744 1365.62343 1.42512 1300.97434 1.78590 1284.08447
7 1990 10.77 123.6977744 1332.22503 1.40939 1267.74765 1.76566 1250.91457
8 1990 9.91 123.6977744 1225.84494 1.37339 1165.14278 1.72005 1149.30719
9 1990 9.02 125.3607228 1130.75372 1.26224 1073.49811 1.58034 1058.57282
10 1990 8.79 125.3607228 1101.92075 1.16296 1044.96214 1.45557 1030.12481
11 1990 9.42 125.3607228 1180.89801 1.13204 1118.72499 1.41646 1102.53983
12 1990 9.51 127.0636375 1208.37519 1.21195 1143.54358 1.51603 1126.67774
1 1991 10.02 127.0636375 1273.17765 1.23884 1203.63042 1.54922 1185.54972
2 1991 10.71 127.0636375 1360.85156 1.30393 1285.21122 1.63017 1265.55921
3 1991 10.70 129.8206787 1389.08126 1.39231 1310.47952 1.74019 1290.07197
4 1991 10.75 129.8206787 1395.57230 1.41969 1315.18357 1.77389 1294.32645
5 1991 11.34 129.8206787 1472.16650 1.42478 1385.94095 1.77974 1363.58416
6 1991 10.76 131.2241455 1411.97181 1.50144 1327.77046 1.87497 1305.95426
7 1991 11.37 131.2241455 1492.01853 1.43842 1401.60527 1.79573 1378.19497
8 1991 11.61 131.2241455 1523.51233 1.51841 1429.67220 1.89506 1405.39110
9 1991 11.41 132.6078799 1513.05591 1.54881 1418.31103 1.93246 1393.81292
10 1991 11.60 132.6078799 1538.25141 1.53650 1440.39233 1.91654 1415.10624
11 1991 11.10 132.6078799 1471.94747 1.56042 1376.74603 1.94582 1352.16446
12 1991 11.85 134.0312203 1588.26996 1.49147 1484.05363 1.85927 1457.16169
1 1992 12.01 134.0312203 1609.71496 1.60772 1502.48376 2.00365 1474.83280
2 1992 12.40 134.0312203 1661.98713 1.62769 1549.64614 2.02794 1520.69701
3 1992 12.13 135.3356604 1641.62156 1.67878 1528.97838 2.09101 1499.97176
4 1992 12.51 135.3356604 1693.04911 1.65639 1575.22073 2.06251 1544.89930
5 1992 12.61 135.3356604 1706.58268 1.70649 1586.10594 2.12429 1555.12432
6 1992 12.40 136.4226938 1691.64140 1.71828 1570.50116 2.13835 1539.37073
7 1992 12.78 136.4226938 1743.48203 1.70138 1616.92805 2.11669 1584.42831
8 1992 12.50 136.4226938 1705.28367 1.75167 1579.75072 2.17864 1547.53606
9 1992 12.53 137.5088618 1722.98604 1.71140 1594.43855 2.12791 1561.47295
10 1992 12.68 137.5088618 1743.61237 1.72731 1611.79869 2.14708 1578.01869
11 1992 13.14 137.5088618 1806.86644 1.74612 1668.52477 2.16983 1633.09559
12 1992 13.40 138.5435409 1856.48345 1.80757 1712.53531 2.24556 1675.69525
1 1993 13.80 138.5435409 1911.90087 1.85525 1761.80052 2.30414 1723.41186
2 1993 14.11 138.5435409 1954.84936 1.90862 1799.46858 2.36975 1759.75644
3 1993 14.43 139.5083288 2013.10519 1.94942 1851.14453 2.41972 1809.77864
4 1993 14.37 139.5083288 2004.73469 2.00541 1841.44205 2.48851 1799.76506
5 1993 14.63 139.5083288 2041.00685 1.99490 1872.76483 2.47474 1829.85393
6 1993 14.70 140.4771367 2065.01391 2.02883 1892.76414 2.51611 1848.86122
7 1993 14.90 140.4771367 2093.10934 2.05049 1916.46553 2.54225 1871.47355
8 1993 15.47 140.4771367 2173.18130 2.07617 1987.70382 2.57334 1940.49349
9 1993 15.31 141.4025460 2164.87298 2.15335 1977.95125 2.66824 1930.40652
10 1993 15.45 141.4025460 2184.66934 2.14278 1993.89555 2.65437 1945.40445
11 1993 15.18 141.4025460 2146.49065 2.16005 1956.89072 2.67500 1908.73210
12 1993 15.44 142.2348697 2196.10639 2.11996 2000.00392 2.62457 1950.22752
1 1994 16.12 142.2348697 2292.82610 2.16667 2085.92033 2.68163 2033.43675
2 1994 14.94 149.5168411 2233.78161 2.25975 2029.94429 2.79604 1978.27596
3 1994 14.22 150.5156176 2140.33208 2.19911 1942.82313 2.72020 1892.79524
4 1994 14.71 150.5156176 2214.08473 2.10472 2007.66519 2.60266 1955.41548
5 1994 14.85 150.5156176 2235.15692 2.17497 2024.59784 2.68876 1971.33707
6 1994 14.67 151.4211260 2221.34792 2.19331 2009.89638 2.71065 1956.44731
7 1994 15.16 151.4211260 2295.54427 2.17739 2074.85255 2.69018 2019.10541
8 1994 15.94 151.4211260 2413.65275 2.24776 2179.35842 2.77634 2120.21444
9 1994 15.59 152.2841976 2374.11064 2.36097 2141.29371 2.91537 2082.56427
10 1994 15.91 152.2841976 2422.84158 2.31973 2182.92612 2.86360 2122.44735
11 1994 15.39 152.2841976 2343.65380 2.36484 2109.21486 2.91844 2050.15917
12 1994 15.35 153.1776512 2351.27695 2.28498 2113.79047 2.81904 2054.00863
1 1995 15.59 153.1776512 2388.03958 2.28994 2144.55002 2.82433 2083.29910
2 1995 15.39 161.0849025 2479.09665 2.32326 2223.99946 2.86461 2159.87166
3 1995 15.82 162.1174981 2564.69882 2.40933 2298.38389 2.96990 2231.48123
4 1995 16.26 162.1174981 2636.03052 2.48992 2359.81869 3.06836 2290.47682
5 1995 16.75 162.1174981 2715.46809 2.55647 2428.37607 3.14948 2356.35155
6 1995 16.89 163.0836333 2754.48257 2.63074 2460.63501 3.24006 2386.96636
7 1995 17.54 163.0836333 2860.48693 2.66569 2552.66516 3.28216 2475.54495
8 1995 17.76 163.0836333 2896.36533 2.76539 2581.91724 3.40396 2503.19116
9 1995 18.25 163.9738278 2992.52236 2.79708 2664.83776 3.44197 2582.85315
10 1995 18.04 163.9738278 2958.08785 2.88691 2631.28697 3.55151 2549.58114
11 1995 18.82 163.9738278 3085.98744 2.85056 2742.20602 3.50576 2656.31226
12 1995 19.27 164.8363940 3176.39731 2.97072 2819.57344 3.65252 2730.48146
1 1996 19.83 164.8363940 3268.70569 3.05454 2898.45773 3.75450 2806.07670
2 1996 19.00 172.6149937 3279.68488 3.14000 2905.05330 3.85845 2811.64353
3 1996 19.20 172.6149937 3314.20788 3.14714 2932.48567 3.86610 2837.37367
4 1996 19.45 172.6149937 3357.36163 3.17686 2967.49221 3.90148 2870.41716
5 1996 19.66 172.6149937 3393.61078 3.21478 2996.31719 3.94692 2897.46189
6 1996 19.48 172.6149937 3362.54008 3.24601 2965.63796 3.98411 2866.94965
7 1996 18.53 172.6149937 3198.55583 3.21277 2817.79705 3.94215 2723.19219
8 1996 18.91 172.6149937 3264.14953 3.05261 2872.52981 3.74448 2775.29299
9 1996 19.72 172.6149937 3403.96768 3.11191 2992.46122 3.81612 2890.35510
10 1996 20.04 172.6149937 3459.20447 3.24183 3037.77860 3.97433 2933.28308
11 1996 21.38 172.6149937 3690.50857 3.29093 3237.61259 4.03336 3125.38741
12 1996 21.03 172.6149937 3630.09332 3.50741 3181.10403 4.29751 3069.92593
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 263.01%
GROSS ANNUAL RETURN = 13.43%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 3181.10 3181.10
TOTAL RETURN 218.11% 218.11%
AVERAGE ANNUAL RETURN 11.98% 11.98%
WITH DEATH BENEFIT CHARGE
ERV 3069.93 3069.93
TOTAL RETURN 206.99% 206.99%
AVERAGE ANNUAL RETURN 11.59% 11.59%
<PAGE>
MFS Emerging Growth
12/1996
Assume ($10000 @ $10.00 on 7/24/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.3276700000 11.30 2.900 102.899735
12/96 0.1128000000 13.27 0.875 103.774421
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.41 102.8997345 1174.08597 1000.00000 1000.00000
1 1996 11.61 102.8997345 1194.66592 1.08333 1016.44515 1.37503 1016.15345
2 1996 12.07 102.8997345 1241.99980 1.10115 1055.61659 1.39724 1055.01724
3 1996 12.19 102.8997345 1254.34776 1.14358 1064.96795 1.45068 1064.05554
4 1996 13.05 102.8997345 1342.84154 1.15372 1138.94733 1.46311 1137.66115
5 1996 13.42 102.8997345 1380.91444 1.23386 1170.00547 1.56432 1168.35236
6 1996 13.13 102.8997345 1351.07351 1.26751 1143.45468 1.60652 1141.49828
7 1996 12.18 102.8997345 1253.31877 1.23874 1059.48312 1.56960 1057.33741
8 1996 12.51 102.8997345 1287.27568 1.14777 1087.04055 1.45387 1084.53061
9 1996 13.58 102.8997345 1397.37839 1.17763 1178.83922 1.49127 1175.80096
10 1996 13.38 102.8997345 1376.79845 1.27708 1160.20074 1.61677 1156.86754
11 1996 13.97 102.8997345 1437.50929 1.25688 1210.10368 1.59073 1206.28965
12 1996 13.24 103.7744210 1373.97333 1.31095 1155.30779 1.65869 1151.31460
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 17.02%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1155.31 1086.57
TOTAL RETURN 15.53% 8.66%
WITH DEATH BENEFIT CHARGE
ERV 1151.31 1082.81
TOTAL RETURN 15.13% 8.28%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.41 102.8997345 1174.08597 1000.00000 1000.00000
1 1996 11.61 102.8997345 1194.66592 1.08333 1016.44515 1.37503 1016.15345
2 1996 12.07 102.8997345 1241.99980 1.10115 1055.61659 1.39724 1055.01724
3 1996 12.19 102.8997345 1254.34776 1.14358 1064.96795 1.45068 1064.05554
4 1996 13.05 102.8997345 1342.84154 1.15372 1138.94733 1.46311 1137.66115
5 1996 13.42 102.8997345 1380.91444 1.23386 1170.00547 1.56432 1168.35236
6 1996 13.13 102.8997345 1351.07351 1.26751 1143.45468 1.60652 1141.49828
7 1996 12.18 102.8997345 1253.31877 1.23874 1059.48312 1.56960 1057.33741
8 1996 12.51 102.8997345 1287.27568 1.14777 1087.04055 1.45387 1084.53061
9 1996 13.58 102.8997345 1397.37839 1.17763 1178.83922 1.49127 1175.80096
10 1996 13.38 102.8997345 1376.79845 1.27708 1160.20074 1.61677 1156.86754
11 1996 13.97 102.8997345 1437.50929 1.25688 1210.10368 1.59073 1206.28965
12 1996 13.24 103.7744210 1373.97333 1.31095 1155.30779 1.65869 1151.31460
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 17.02%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1155.31 1086.57
TOTAL RETURN 15.53% 8.66%
WITH DEATH BENEFIT CHARGE
ERV 1151.31 1082.81
TOTAL RETURN 15.13% 8.28%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 10.07 100.0000000 1007.00000 1.08333 1005.91667 1.37503 1005.62497
8 1995 10.37 100.0000000 1037.00000 1.08974 1034.79465 1.38277 1034.20123
9 1995 10.87 100.0000000 1087.00000 1.12103 1083.56729 1.42206 1082.64423
10 1995 11.06 100.0000000 1106.00000 1.17386 1101.33342 1.48867 1100.07942
11 1995 11.69 100.0000000 1169.00000 1.19311 1162.87449 1.51265 1161.22953
12 1995 11.41 102.8997345 1174.08597 1.25978 1166.67403 1.59673 1164.68496
1 1996 11.61 102.8997345 1194.66592 1.26390 1185.86016 1.60148 1183.49864
2 1996 12.07 102.8997345 1241.99980 1.28468 1231.56047 1.62735 1228.76271
3 1996 12.19 102.8997345 1254.34776 1.33419 1242.47046 1.68959 1239.28949
4 1996 13.05 102.8997345 1342.84154 1.34601 1328.78028 1.70406 1325.01684
5 1996 13.42 102.8997345 1380.91444 1.43951 1365.01500 1.82194 1360.76242
6 1996 13.13 102.8997345 1351.07351 1.47877 1334.03889 1.87109 1329.48588
7 1996 12.18 102.8997345 1253.31877 1.44521 1236.07144 1.82809 1231.46498
8 1996 12.51 102.8997345 1287.27568 1.33908 1268.22199 1.69331 1263.13649
9 1996 13.58 102.8997345 1397.37839 1.37391 1375.32110 1.73685 1369.43769
10 1996 13.38 102.8997345 1376.79845 1.48993 1353.57608 1.88302 1347.38622
11 1996 13.97 102.8997345 1437.50929 1.46637 1411.79654 1.85270 1404.94741
12 1996 13.24 103.7744210 1373.97333 1.52945 1347.86760 1.93185 1340.91880
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 37.40%
GROSS ANNUAL RETURN = 24.72%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1347.87 1279.13
TOTAL RETURN 34.79% 27.91%
AVERAGE ANNUAL RETURN 23.07% 18.67%
WITH DEATH BENEFIT CHARGE
ERV 1340.92 1272.53
TOTAL RETURN 34.09% 27.25%
AVERAGE ANNUAL RETURN 22.62% 18.24%
<PAGE>
MFS High Income
12/1996
Assume ($10000 @ $10.00 on 7/26/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.2343800000 10.26 2.284 102.284405
12/96 0.6346600000 10.87 5.972 108.256422
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.29 102.2844055 1052.50653 1000.00000 1000.00000
1 1996 10.48 102.2844055 1071.94057 1.08333 1017.38120 1.37503 1017.08950
2 1996 10.51 102.2844055 1075.00910 1.10216 1019.19138 1.39853 1018.60248
3 1996 10.42 102.2844055 1065.80350 1.10412 1009.35965 1.40061 1008.47930
4 1996 10.51 102.2844055 1075.00910 1.09347 1016.98425 1.38669 1015.80308
5 1996 10.57 102.2844055 1081.14617 1.10173 1021.68833 1.39676 1020.20538
6 1996 10.59 102.2844055 1083.19185 1.10683 1022.51468 1.40282 1020.73294
7 1996 10.71 102.2844055 1095.46598 1.10772 1032.99353 1.40354 1030.89578
8 1996 10.90 102.2844055 1114.90002 1.11908 1050.20020 1.41752 1047.76680
9 1996 11.18 102.2844055 1143.53965 1.13772 1076.04010 1.44071 1073.24119
10 1996 11.19 102.2844055 1144.56250 1.16571 1075.83686 1.47574 1072.72542
11 1996 11.41 102.2844055 1167.06507 1.16549 1095.82277 1.47503 1092.34061
12 1996 10.87 108.2564221 1176.74731 1.18714 1103.72682 1.50200 1099.90091
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1103.73 1038.06
TOTAL RETURN 10.37% 3.81%
WITH DEATH BENEFIT CHARGE
ERV 1099.90 1034.46
TOTAL RETURN 9.99% 3.45%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.29 102.2844055 1052.50653 1000.00000 1000.00000
1 1996 10.48 102.2844055 1071.94057 1.08333 1017.38120 1.37503 1017.08950
2 1996 10.51 102.2844055 1075.00910 1.10216 1019.19138 1.39853 1018.60248
3 1996 10.42 102.2844055 1065.80350 1.10412 1009.35965 1.40061 1008.47930
4 1996 10.51 102.2844055 1075.00910 1.09347 1016.98425 1.38669 1015.80308
5 1996 10.57 102.2844055 1081.14617 1.10173 1021.68833 1.39676 1020.20538
6 1996 10.59 102.2844055 1083.19185 1.10683 1022.51468 1.40282 1020.73294
7 1996 10.71 102.2844055 1095.46598 1.10772 1032.99353 1.40354 1030.89578
8 1996 10.90 102.2844055 1114.90002 1.11908 1050.20020 1.41752 1047.76680
9 1996 11.18 102.2844055 1143.53965 1.13772 1076.04010 1.44071 1073.24119
10 1996 11.19 102.2844055 1144.56250 1.16571 1075.83686 1.47574 1072.72542
11 1996 11.41 102.2844055 1167.06507 1.16549 1095.82277 1.47503 1092.34061
12 1996 10.87 108.2564221 1176.74731 1.18714 1103.72682 1.50200 1099.90091
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1103.73 1038.06
TOTAL RETURN 10.37% 3.81%
WITH DEATH BENEFIT CHARGE
ERV 1099.90 1034.46
TOTAL RETURN 9.99% 3.45%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 9.97 100.0000000 997.00000 1.08333 995.91667 1.37503 995.62497
8 1995 9.93 100.0000000 993.00000 1.07891 990.84210 1.36902 990.26147
9 1995 10.08 100.0000000 1008.00000 1.07341 1004.73609 1.36164 1003.85846
10 1995 10.30 100.0000000 1030.00000 1.08846 1025.57639 1.38034 1024.38773
11 1995 10.35 100.0000000 1035.00000 1.11104 1029.44388 1.40857 1027.95191
12 1995 10.29 102.2844055 1052.50653 1.11523 1045.74120 1.41347 1043.92576
1 1996 10.48 102.2844055 1071.94057 1.13289 1063.91743 1.43543 1061.76593
2 1996 10.51 102.2844055 1075.00910 1.15258 1065.81042 1.45996 1063.34537
3 1996 10.42 102.2844055 1065.80350 1.15463 1055.52897 1.46214 1052.77752
4 1996 10.51 102.2844055 1075.00910 1.14349 1063.50233 1.44760 1060.42300
5 1996 10.57 102.2844055 1081.14617 1.15213 1068.42158 1.45812 1065.01868
6 1996 10.59 102.2844055 1083.19185 1.15746 1069.28573 1.46444 1065.56942
7 1996 10.71 102.2844055 1095.46598 1.15839 1080.24389 1.46519 1076.17866
8 1996 10.90 102.2844055 1114.90002 1.17026 1098.23762 1.47978 1093.79075
9 1996 11.18 102.2844055 1143.53965 1.18976 1125.25947 1.50400 1120.38413
10 1996 11.19 102.2844055 1144.56250 1.21903 1125.04693 1.54057 1119.84570
11 1996 11.41 102.2844055 1167.06507 1.21880 1145.94702 1.53983 1140.32250
12 1996 10.87 108.2564221 1176.74731 1.24144 1154.21262 1.56798 1148.21490
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 17.67%
GROSS ANNUAL RETURN = 12.03%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1154.21 1095.35
TOTAL RETURN 15.42% 9.53%
AVERAGE ANNUAL RETURN 10.53% 6.56%
WITH DEATH BENEFIT CHARGE
ERV 1148.21 1089.66
TOTAL RETURN 14.82% 8.97%
AVERAGE ANNUAL RETURN 10.13% 6.18%
<PAGE>
MFS Research
12/1996
Assume ($10000 @ $10.00 on 7/26/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.1712900000 10.82 1.583 101.583087
12/96 0.1927500000 13.18 1.486 103.068682
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.89 101.5830869 1106.23982 1000.00000 1000.00000
1 1996 11.12 101.5830869 1129.60393 1.08333 1020.03696 1.37503 1019.74526
2 1996 11.54 101.5830869 1172.26882 1.10504 1057.45850 1.40218 1056.85864
3 1996 11.52 101.5830869 1170.23716 1.14558 1054.48023 1.45322 1053.57378
4 1996 11.98 101.5830869 1216.96538 1.14235 1095.44386 1.44870 1094.19486
5 1996 12.37 101.5830869 1256.58278 1.18673 1129.91849 1.50455 1128.31101
6 1996 12.21 101.5830869 1240.32949 1.22408 1114.07946 1.55147 1112.16538
7 1996 11.60 101.5830869 1178.36381 1.20692 1057.21419 1.52926 1055.07339
8 1996 11.96 101.5830869 1214.93372 1.14532 1088.87897 1.45076 1086.36629
9 1996 12.68 101.5830869 1288.07354 1.17962 1153.25059 1.49379 1150.27248
10 1996 12.79 101.5830869 1299.24768 1.24935 1162.00578 1.58166 1158.66952
11 1996 13.55 101.5830869 1376.45083 1.25884 1229.79498 1.59321 1225.92610
12 1996 13.13 103.0686817 1353.29179 1.33228 1207.77117 1.68569 1203.61398
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.33%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1207.77 1135.91
TOTAL RETURN 20.78% 13.59%
WITH DEATH BENEFIT CHARGE
ERV 1203.61 1132.00
TOTAL RETURN 20.36% 13.20%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.89 101.5830869 1106.23982 1000.00000 1000.00000
1 1996 11.12 101.5830869 1129.60393 1.08333 1020.03696 1.37503 1019.74526
2 1996 11.54 101.5830869 1172.26882 1.10504 1057.45850 1.40218 1056.85864
3 1996 11.52 101.5830869 1170.23716 1.14558 1054.48023 1.45322 1053.57378
4 1996 11.98 101.5830869 1216.96538 1.14235 1095.44386 1.44870 1094.19486
5 1996 12.37 101.5830869 1256.58278 1.18673 1129.91849 1.50455 1128.31101
6 1996 12.21 101.5830869 1240.32949 1.22408 1114.07946 1.55147 1112.16538
7 1996 11.60 101.5830869 1178.36381 1.20692 1057.21419 1.52926 1055.07339
8 1996 11.96 101.5830869 1214.93372 1.14532 1088.87897 1.45076 1086.36629
9 1996 12.68 101.5830869 1288.07354 1.17962 1153.25059 1.49379 1150.27248
10 1996 12.79 101.5830869 1299.24768 1.24935 1162.00578 1.58166 1158.66952
11 1996 13.55 101.5830869 1376.45083 1.25884 1229.79498 1.59321 1225.92610
12 1996 13.13 103.0686817 1353.29179 1.33228 1207.77117 1.68569 1203.61398
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.33%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1207.77 1135.91
TOTAL RETURN 20.78% 13.59%
WITH DEATH BENEFIT CHARGE
ERV 1203.61 1132.00
TOTAL RETURN 20.36% 13.20%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 10.00 100.0000000 1000.00000 1.08333 998.91667 1.37503 998.62497
8 1995 10.10 100.0000000 1010.00000 1.08216 1007.82367 1.37314 1007.23807
9 1995 10.40 100.0000000 1040.00000 1.09181 1036.66722 1.38499 1035.77105
10 1995 10.47 100.0000000 1047.00000 1.12306 1042.52173 1.42422 1041.31837
11 1995 10.81 100.0000000 1081.00000 1.12940 1075.24691 1.43185 1073.70202
12 1995 10.89 101.5830869 1106.23982 1.16485 1099.18755 1.47638 1097.29506
1 1996 11.12 101.5830869 1129.60393 1.19079 1121.21192 1.50882 1118.96143
2 1996 11.54 101.5830869 1172.26882 1.21465 1162.34521 1.53861 1159.68576
3 1996 11.52 101.5830869 1170.23716 1.25921 1159.07154 1.59461 1156.08130
4 1996 11.98 101.5830869 1216.96538 1.25566 1204.09825 1.58965 1200.65462
5 1996 12.37 101.5830869 1256.58278 1.30444 1241.99233 1.65094 1238.09009
6 1996 12.21 101.5830869 1240.32949 1.34549 1224.58227 1.70242 1220.37358
7 1996 11.60 101.5830869 1178.36381 1.32663 1162.07667 1.67805 1157.72682
8 1996 11.96 101.5830869 1214.93372 1.25892 1196.88220 1.59191 1192.06436
9 1996 12.68 101.5830869 1288.07354 1.29662 1267.63869 1.63913 1262.18830
10 1996 12.79 101.5830869 1299.24768 1.37328 1277.26228 1.73555 1271.40234
11 1996 13.55 101.5830869 1376.45083 1.38370 1351.77532 1.74822 1345.20265
12 1996 13.13 103.0686817 1353.29179 1.46442 1327.56703 1.84970 1320.71967
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 35.33%
GROSS ANNUAL RETURN = 23.51%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1327.57 1259.86
TOTAL RETURN 32.76% 25.99%
AVERAGE ANNUAL RETURN 21.87% 17.49%
WITH DEATH BENEFIT CHARGE
ERV 1320.72 1253.36
TOTAL RETURN 32.07% 25.34%
AVERAGE ANNUAL RETURN 21.43% 17.07%
<PAGE>
MFS World Government
12/1996
Assume ($10000 @ $10.00 on 6/14/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/94 0.2600000000 9.86 2.637 102.636917
12/95 1.0600000000 10.15 10.719 113.355649
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.17 113.3556490 1152.82695 1000.00000 1000.00000
1 1996 10.13 113.3556490 1148.29272 1.08333 994.98353 1.37503 994.69183
2 1996 9.95 113.3556490 1127.88871 1.07790 976.22577 1.36773 975.64941
3 1996 9.94 113.3556490 1126.75515 1.05758 974.18706 1.34155 973.32731
4 1996 10.01 113.3556490 1134.69005 1.05537 979.99216 1.33836 978.84337
5 1996 10.04 113.3556490 1138.09072 1.06166 981.86754 1.34594 980.43103
6 1996 10.10 113.3556490 1144.89206 1.06369 986.67159 1.34813 984.94205
7 1996 10.27 113.3556490 1164.16252 1.06889 1002.21003 1.35433 1000.16595
8 1996 10.29 113.3556490 1166.42963 1.08573 1003.07603 1.37526 1000.73844
9 1996 10.34 113.3556490 1172.09741 1.08667 1006.86340 1.37605 1004.22506
10 1996 10.52 113.3556490 1192.50143 1.09077 1023.30023 1.38084 1020.32589
11 1996 10.66 113.3556490 1208.37122 1.10858 1035.80972 1.40298 1032.50139
12 1996 10.58 113.3556490 1199.30277 1.12213 1026.91416 1.41972 1023.33306
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.03%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1026.91 965.81
TOTAL RETURN 2.69% -3.42%
WITH DEATH BENEFIT CHARGE
ERV 1023.33 962.44
TOTAL RETURN 2.33% -3.76%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 10.17 113.3556490 1152.82695 1000.00000 1000.00000
1 1996 10.13 113.3556490 1148.29272 1.08333 994.98353 1.37503 994.69183
2 1996 9.95 113.3556490 1127.88871 1.07790 976.22577 1.36773 975.64941
3 1996 9.94 113.3556490 1126.75515 1.05758 974.18706 1.34155 973.32731
4 1996 10.01 113.3556490 1134.69005 1.05537 979.99216 1.33836 978.84337
5 1996 10.04 113.3556490 1138.09072 1.06166 981.86754 1.34594 980.43103
6 1996 10.10 113.3556490 1144.89206 1.06369 986.67159 1.34813 984.94205
7 1996 10.27 113.3556490 1164.16252 1.06889 1002.21003 1.35433 1000.16595
8 1996 10.29 113.3556490 1166.42963 1.08573 1003.07603 1.37526 1000.73844
9 1996 10.34 113.3556490 1172.09741 1.08667 1006.86340 1.37605 1004.22506
10 1996 10.52 113.3556490 1192.50143 1.09077 1023.30023 1.38084 1020.32589
11 1996 10.66 113.3556490 1208.37122 1.10858 1035.80972 1.40298 1032.50139
12 1996 10.58 113.3556490 1199.30277 1.12213 1026.91416 1.41972 1023.33306
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.03%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1026.91 965.81
TOTAL RETURN 2.69% -3.42%
WITH DEATH BENEFIT CHARGE
ERV 1023.33 962.44
TOTAL RETURN 2.33% -3.76%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
6 1994 10.02 100.0000000 1002.00000 1.08333 1000.91667 1.37503 1000.62497
7 1994 9.92 100.0000000 992.00000 1.08433 989.84315 1.37589 989.26280
8 1994 9.90 100.0000000 990.00000 1.07233 986.77517 1.36027 985.90805
9 1994 9.94 100.0000000 994.00000 1.06901 989.69313 1.35566 988.53586
10 1994 10.16 100.0000000 1016.00000 1.07217 1010.52564 1.35927 1009.05565
11 1994 10.06 100.0000000 1006.00000 1.09474 999.48479 1.38749 997.73651
12 1994 9.82 102.6369168 1007.89452 1.08278 1000.28427 1.37192 998.24356
1 1995 9.91 102.6369168 1017.13185 1.08364 1008.36820 1.37262 1006.01981
2 1995 10.12 102.6369168 1038.68560 1.09240 1028.64385 1.38331 1025.95478
3 1995 10.64 102.6369168 1092.05680 1.11436 1080.38470 1.41072 1077.26110
4 1995 10.69 102.6369168 1097.18864 1.17042 1084.29128 1.48127 1080.84215
5 1995 10.88 102.6369168 1116.68966 1.17465 1102.38841 1.48619 1098.56643
6 1995 10.91 102.6369168 1119.76876 1.19425 1104.23383 1.51057 1100.08500
7 1995 10.89 102.6369168 1117.71602 1.19625 1101.01332 1.51265 1096.55569
8 1995 10.73 102.6369168 1101.29412 1.19276 1083.64405 1.50780 1078.93688
9 1995 10.86 102.6369168 1114.63692 1.17395 1095.59906 1.48357 1090.52524
10 1995 11.02 102.6369168 1131.05882 1.18690 1110.55358 1.49951 1105.09240
11 1995 11.21 102.6369168 1150.55984 1.20310 1128.49796 1.51954 1122.62618
12 1995 10.17 113.3556490 1152.82695 1.22254 1129.49906 1.54365 1123.29460
1 1996 10.13 113.3556490 1148.29272 1.22362 1123.83296 1.54457 1117.33196
2 1996 9.95 113.3556490 1127.88871 1.21749 1102.64609 1.53637 1095.94172
3 1996 9.94 113.3556490 1126.75515 1.19453 1100.34337 1.50696 1093.33331
4 1996 10.01 113.3556490 1134.69005 1.19204 1106.90023 1.50337 1099.52947
5 1996 10.04 113.3556490 1138.09072 1.19914 1109.01847 1.51189 1101.31288
6 1996 10.10 113.3556490 1144.89206 1.20144 1114.44463 1.51434 1106.38009
7 1996 10.27 113.3556490 1164.16252 1.20731 1131.99529 1.52131 1123.48101
8 1996 10.29 113.3556490 1166.42963 1.22633 1132.97344 1.54482 1124.12408
9 1996 10.34 113.3556490 1172.09741 1.22739 1137.25126 1.54571 1128.04059
10 1996 10.52 113.3556490 1192.50143 1.23202 1155.81665 1.55109 1146.12657
11 1996 10.66 113.3556490 1208.37122 1.25213 1169.94611 1.57596 1159.80324
12 1996 10.58 113.3556490 1199.30277 1.26744 1159.89858 1.59477 1149.50451
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 19.93%
GROSS ANNUAL RETURN = 7.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1159.90 1110.60
TOTAL RETURN 15.99% 11.06%
AVERAGE ANNUAL RETURN 5.99% 4.20%
WITH DEATH BENEFIT CHARGE
ERV 1149.50 1100.65
TOTAL RETURN 14.95% 10.07%
AVERAGE ANNUAL RETURN 5.62% 3.84%
<PAGE>
Scudder International
12/1996
Assume ($10000 @ $10.00 on 5/ 1/1987)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/87 0.1020000000 5.26 1.939 101.939163
1/90 0.0350000000 8.34 0.428 102.366966
2/91 0.2000000000 8.44 2.426 104.792723
2/92 0.0900000000 8.23 1.146 105.938695
2/93 0.2550000000 8.12 3.327 109.265587
2/94 0.0700000000 11.01 0.695 109.960282
2/95 0.0500000000 10.18 0.540 110.500362
2/96 0.2750000000 11.89 2.556 113.056090
4/96 0.0100000000 12.52 0.090 113.146390
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.82 110.5003621 1306.11428 1000.00000 1000.00000
1 1996 12.04 110.5003621 1330.42436 1.08333 1017.52919 1.37503 1017.23749
2 1996 11.84 113.0560895 1338.58410 1.10232 1022.66756 1.39874 1022.07766
3 1996 12.09 113.0560895 1366.84812 1.10789 1043.15316 1.40539 1042.25330
4 1996 12.48 113.1463899 1412.06695 1.13008 1076.53324 1.43313 1075.30057
5 1996 12.48 113.1463899 1412.06695 1.16624 1075.36700 1.47857 1073.82199
6 1996 12.61 113.1463899 1426.77598 1.16498 1085.40376 1.47654 1083.53110
7 1996 12.14 113.1463899 1373.59717 1.17585 1043.77273 1.48989 1041.65583
8 1996 12.33 113.1463899 1395.09499 1.13075 1058.97779 1.43231 1056.52620
9 1996 12.61 113.1463899 1426.77598 1.14723 1081.87872 1.45276 1079.06593
10 1996 12.55 113.1463899 1419.98719 1.17204 1075.55897 1.48375 1072.44784
11 1996 13.11 113.1463899 1483.34917 1.16519 1122.38685 1.47465 1118.82744
12 1996 13.25 113.1463899 1499.18967 1.21592 1133.15676 1.53842 1129.23683
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.78%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1133.16 1065.73
TOTAL RETURN 13.32% 6.57%
WITH DEATH BENEFIT CHARGE
ERV 1129.24 1062.05
TOTAL RETURN 12.92% 6.20%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.82 110.5003621 1306.11428 1000.00000 1000.00000
1 1996 12.04 110.5003621 1330.42436 1.08333 1017.52919 1.37503 1017.23749
2 1996 11.84 113.0560895 1338.58410 1.10232 1022.66756 1.39874 1022.07766
3 1996 12.09 113.0560895 1366.84812 1.10789 1043.15316 1.40539 1042.25330
4 1996 12.48 113.1463899 1412.06695 1.13008 1076.53324 1.43313 1075.30057
5 1996 12.48 113.1463899 1412.06695 1.16624 1075.36700 1.47857 1073.82199
6 1996 12.61 113.1463899 1426.77598 1.16498 1085.40376 1.47654 1083.53110
7 1996 12.14 113.1463899 1373.59717 1.17585 1043.77273 1.48989 1041.65583
8 1996 12.33 113.1463899 1395.09499 1.13075 1058.97779 1.43231 1056.52620
9 1996 12.61 113.1463899 1426.77598 1.14723 1081.87872 1.45276 1079.06593
10 1996 12.55 113.1463899 1419.98719 1.17204 1075.55897 1.48375 1072.44784
11 1996 13.11 113.1463899 1483.34917 1.16519 1122.38685 1.47465 1118.82744
12 1996 13.25 113.1463899 1499.18967 1.21592 1133.15676 1.53842 1129.23683
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.78%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1133.16 1065.73
TOTAL RETURN 13.32% 6.57%
WITH DEATH BENEFIT CHARGE
ERV 1129.24 1062.05
TOTAL RETURN 12.92% 6.20%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 10.85 109.2655872 1185.53162 1000.00000 1000.00000
1 1994 11.31 109.2655872 1235.79379 1.08333 1041.31298 1.37503 1041.02128
2 1994 11.08 109.9602821 1218.35993 1.12809 1025.49465 1.43144 1024.90371
3 1994 10.72 109.9602821 1178.77422 1.11095 991.06438 1.40928 990.19432
4 1994 10.95 109.9602821 1204.06509 1.07365 1011.25423 1.36155 1010.07761
5 1994 10.86 109.9602821 1194.16866 1.09553 1001.84703 1.38889 1000.38671
6 1994 10.86 109.9602821 1194.16866 1.08533 1000.76169 1.37557 999.01114
7 1994 11.12 109.9602821 1222.75834 1.08416 1023.63684 1.37367 1021.55486
8 1994 11.42 109.9602821 1255.74642 1.10894 1050.14400 1.40467 1047.71013
9 1994 11.12 109.9602821 1222.75834 1.13766 1021.41937 1.44064 1018.74646
10 1994 11.37 109.9602821 1250.24841 1.10654 1043.27640 1.40081 1040.24912
11 1994 10.76 109.9602821 1183.17264 1.13022 986.17445 1.43038 983.00942
12 1994 10.69 109.9602821 1175.47542 1.06836 978.69046 1.35167 975.26271
1 1995 10.18 109.9602821 1119.39567 1.06025 930.93871 1.34102 927.39372
2 1995 10.14 110.5003621 1120.47367 1.00852 930.82671 1.27520 927.01162
3 1995 10.39 110.5003621 1148.09876 1.00840 952.76769 1.27467 948.59227
4 1995 10.93 110.5003621 1207.76896 1.03216 1001.25377 1.30435 996.58915
5 1995 10.94 110.5003621 1208.87396 1.08469 1001.08514 1.37034 996.13060
6 1995 11.09 110.5003621 1225.44902 1.08451 1013.72666 1.36971 1008.41899
7 1995 11.75 110.5003621 1298.37925 1.09820 1072.95845 1.38661 1067.04649
8 1995 11.53 110.5003621 1274.06917 1.16237 1051.70664 1.46722 1045.60053
9 1995 11.82 110.5003621 1306.11428 1.13935 1077.01958 1.43774 1070.46150
10 1995 11.55 110.5003621 1276.27918 1.16677 1051.25084 1.47192 1044.53742
11 1995 11.66 110.5003621 1288.43422 1.13886 1060.12390 1.43627 1053.04912
12 1995 11.82 110.5003621 1306.11428 1.14847 1073.52259 1.44798 1066.05121
1 1996 12.04 110.5003621 1330.42436 1.16298 1092.34057 1.46586 1084.42726
2 1996 11.84 113.0560895 1338.58410 1.18337 1097.85673 1.49112 1089.58713
3 1996 12.09 113.0560895 1366.84812 1.18934 1119.84848 1.49822 1111.09540
4 1996 12.48 113.1463899 1412.06695 1.21317 1155.68275 1.52779 1146.32548
5 1996 12.48 113.1463899 1412.06695 1.25199 1154.43076 1.57624 1144.74924
6 1996 12.61 113.1463899 1426.77598 1.25063 1165.20545 1.57407 1155.09964
7 1996 12.14 113.1463899 1373.59717 1.26231 1120.51360 1.58830 1110.45846
8 1996 12.33 113.1463899 1395.09499 1.21389 1136.83658 1.52692 1126.31104
9 1996 12.61 113.1463899 1426.77598 1.23157 1161.42125 1.54872 1150.33954
10 1996 12.55 113.1463899 1419.98719 1.25821 1154.63685 1.58176 1143.28433
11 1996 13.11 113.1463899 1483.34917 1.25086 1204.90764 1.57205 1192.72735
12 1996 13.25 113.1463899 1499.18967 1.30532 1216.46937 1.64004 1203.82429
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.46%
GROSS ANNUAL RETURN = 8.14%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1216.47 1164.77
TOTAL RETURN 21.65% 16.48%
AVERAGE ANNUAL RETURN 6.75% 5.22%
WITH DEATH BENEFIT CHARGE
ERV 1203.82 1152.66
TOTAL RETURN 20.38% 15.27%
AVERAGE ANNUAL RETURN 6.38% 4.85%
<TABLE>
<CAPTION>
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1991 8.47 104.7927232 887.59437 1000.00000 1000.00000
1 1992 8.54 104.7927232 894.92986 1.08333 1007.18113 1.37503 1006.88943
2 1992 8.38 105.9386947 887.76626 1.09111 998.02789 1.38451 997.44513
3 1992 8.04 105.9386947 851.74711 1.08120 956.45392 1.37152 955.60448
4 1992 8.15 105.9386947 863.61224 1.03616 968.74149 1.31399 967.60239
5 1992 8.55 105.9386947 905.77584 1.04947 1014.98828 1.33049 1013.51255
6 1992 8.53 105.9386947 903.65707 1.09957 1011.51447 1.39361 1009.74815
7 1992 8.26 105.9386947 875.05362 1.09581 978.40121 1.38844 976.39817
8 1992 8.53 105.9386947 903.65707 1.05993 1009.32291 1.34258 1006.97175
9 1992 8.40 105.9386947 889.88504 1.09343 992.84706 1.38462 990.24055
10 1992 8.13 105.9386947 861.28159 1.07558 959.85854 1.36161 957.04977
11 1992 8.10 105.9386947 858.10343 1.03985 955.27678 1.31598 952.20225
12 1992 8.12 105.9386947 860.22220 1.03488 956.60060 1.30931 953.24406
1 1993 8.14 105.9386947 862.34097 1.03632 957.92045 1.31074 954.28121
2 1993 8.15 109.2655872 890.51454 1.03775 988.17894 1.31217 984.14638
3 1993 8.62 109.2655872 941.86936 1.07053 1044.09542 1.35323 1039.54760
4 1993 9.00 109.2655872 983.39028 1.13110 1088.99172 1.42941 1083.94511
5 1993 9.17 109.2655872 1001.96543 1.17974 1108.38182 1.49046 1102.92917
6 1993 9.02 109.2655872 985.57560 1.20075 1089.05051 1.51656 1083.37123
7 1993 9.24 109.2655872 1009.61403 1.17980 1114.43292 1.48967 1108.30525
8 1993 9.86 109.2655872 1077.35869 1.20730 1188.00358 1.52396 1181.14810
9 1993 10.03 109.2655872 1095.93384 1.28700 1207.19940 1.62412 1199.88860
10 1993 10.34 109.2655872 1129.80617 1.30780 1243.20284 1.64989 1235.32401
11 1993 9.93 109.2655872 1085.00728 1.34680 1192.56076 1.69861 1184.64253
12 1993 10.85 109.2655872 1185.53162 1.29194 1301.75784 1.62892 1292.76900
1 1994 11.31 109.2655872 1235.79379 1.41024 1355.53733 1.77760 1345.80004
2 1994 11.08 109.9602821 1218.35993 1.46850 1334.94570 1.85052 1324.96375
3 1994 10.72 109.9602821 1178.77422 1.44619 1290.12582 1.82187 1280.09252
4 1994 10.95 109.9602821 1204.06509 1.39764 1316.40812 1.76017 1305.79702
5 1994 10.86 109.9602821 1194.16866 1.42611 1304.16222 1.79551 1293.26893
6 1994 10.86 109.9602821 1194.16866 1.41284 1302.74938 1.77829 1291.49064
7 1994 11.12 109.9602821 1222.75834 1.41131 1332.52728 1.77584 1320.63447
8 1994 11.42 109.9602821 1255.74642 1.44357 1367.03318 1.81592 1354.44718
9 1994 11.12 109.9602821 1222.75834 1.48095 1329.64067 1.86241 1317.00384
10 1994 11.37 109.9602821 1250.24841 1.44044 1358.09323 1.81092 1344.80182
11 1994 10.76 109.9602821 1183.17264 1.47127 1283.76032 1.84915 1270.80411
12 1994 10.69 109.9602821 1175.47542 1.39074 1274.01798 1.74740 1260.78940
1 1995 10.18 109.9602821 1119.39567 1.38019 1211.85677 1.73363 1198.90586
2 1995 10.14 110.5003621 1120.47367 1.31284 1211.71096 1.64854 1198.41189
3 1995 10.39 110.5003621 1148.09876 1.31269 1240.27281 1.64786 1226.31068
4 1995 10.93 110.5003621 1207.76896 1.34363 1303.38994 1.68622 1288.35957
5 1995 10.94 110.5003621 1208.87396 1.41201 1303.17042 1.77154 1287.76677
6 1995 11.09 110.5003621 1225.44902 1.41177 1319.62662 1.77072 1303.65281
7 1995 11.75 110.5003621 1298.37925 1.42960 1396.73207 1.79257 1379.44463
8 1995 11.53 110.5003621 1274.06917 1.51313 1369.06736 1.89678 1351.71995
9 1995 11.82 110.5003621 1306.11428 1.48316 1402.01868 1.85866 1383.85945
10 1995 11.55 110.5003621 1276.27918 1.51885 1368.47402 1.90285 1350.34560
11 1995 11.66 110.5003621 1288.43422 1.48251 1380.02459 1.85677 1361.34926
12 1995 11.82 110.5003621 1306.11428 1.49503 1397.46644 1.87190 1378.15797
1 1996 12.04 110.5003621 1330.42436 1.51392 1421.96289 1.89501 1401.91395
2 1996 11.84 113.0560895 1338.58410 1.54046 1429.14360 1.92768 1408.58447
3 1996 12.09 113.0560895 1366.84812 1.54824 1457.77153 1.93685 1436.38969
4 1996 12.48 113.1463899 1412.06695 1.57925 1504.41908 1.97508 1481.93404
5 1996 12.48 113.1463899 1412.06695 1.62979 1502.78929 2.03771 1479.89633
6 1996 12.61 113.1463899 1426.77598 1.62802 1516.81533 2.03491 1493.27701
7 1996 12.14 113.1463899 1373.59717 1.64322 1458.63736 2.05331 1435.56628
8 1996 12.33 113.1463899 1395.09499 1.58019 1479.88593 1.97395 1456.06000
9 1996 12.61 113.1463899 1426.77598 1.60321 1511.88921 2.00213 1487.12331
10 1996 12.55 113.1463899 1419.98719 1.63788 1503.05757 2.04484 1478.00254
11 1996 13.11 113.1463899 1483.34917 1.62831 1568.49796 2.03230 1541.92095
12 1996 13.25 113.1463899 1499.18967 1.69921 1583.54854 2.12019 1556.26673
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.90%
GROSS ANNUAL RETURN = 11.05%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1583.55 1543.17
TOTAL RETURN 58.35% 54.32%
AVERAGE ANNUAL RETURN 9.63% 9.06%
WITH DEATH BENEFIT CHARGE
ERV 1556.27 1516.58
TOTAL RETURN 55.63% 51.66%
AVERAGE ANNUAL RETURN 9.25% 8.69%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4 1987 6.00 100.0000000 600.00000 1000.00000 1000.00000
5 1987 5.96 100.0000000 596.00000 1.08333 992.25000 1.37503 991.95830
6 1987 6.37 100.0000000 637.00000 1.07494 1059.43387 1.36398 1058.83307
7 1987 6.75 100.0000000 675.00000 1.14772 1121.48629 1.45593 1120.54143
8 1987 7.17 100.0000000 717.00000 1.21494 1190.05271 1.54078 1188.72323
9 1987 7.23 100.0000000 723.00000 1.28922 1198.72209 1.63453 1197.03617
10 1987 5.31 100.0000000 531.00000 1.29862 879.09064 1.64596 877.50508
11 1987 5.04 100.0000000 504.00000 0.95235 833.43877 1.20660 831.67958
12 1987 5.26 101.9391635 536.20000 0.90289 885.78335 1.14359 883.67108
1 1988 5.16 101.9391635 526.00608 0.95960 867.98376 1.21508 865.65617
2 1988 5.46 101.9391635 556.58783 0.94032 917.50762 1.19031 914.79471
3 1988 5.71 101.9391635 582.07262 0.99397 958.52408 1.25787 955.42304
4 1988 5.94 101.9391635 605.51863 1.03840 996.09523 1.31374 992.59394
5 1988 5.89 101.9391635 600.42167 1.07910 986.63148 1.36485 982.87393
6 1988 5.83 101.9391635 594.30532 1.06885 975.51206 1.35148 971.51014
7 1988 5.82 101.9391635 593.28593 1.05680 972.78199 1.33586 968.50789
8 1988 5.49 101.9391635 559.64601 1.05385 916.57040 1.33173 912.26076
9 1988 5.57 101.9391635 567.80114 0.99295 928.93367 1.25439 924.29979
10 1988 5.86 101.9391635 597.36350 1.00634 976.29191 1.27094 971.15217
11 1988 6.10 101.9391635 621.82890 1.05765 1015.21891 1.33537 1009.59096
12 1988 6.14 101.9391635 625.90646 1.09982 1020.77627 1.38822 1014.82301
1 1989 6.49 101.9391635 661.58517 1.10584 1077.85800 1.39542 1071.27581
2 1989 6.68 101.9391635 680.95361 1.16768 1108.24548 1.47304 1101.16523
3 1989 6.72 101.9391635 685.03118 1.20060 1113.68108 1.51414 1106.24490
4 1989 7.00 101.9391635 713.57414 1.20649 1158.87797 1.52112 1150.81731
5 1989 7.02 101.9391635 715.61293 1.25545 1160.93360 1.58241 1152.52295
6 1989 6.97 101.9391635 710.51597 1.25768 1151.40717 1.58476 1142.72934
7 1989 7.60 101.9391635 774.73764 1.24736 1254.23248 1.57129 1244.44635
8 1989 7.64 101.9391635 778.81521 1.35875 1259.47495 1.71116 1249.28491
9 1989 7.94 101.9391635 809.39696 1.36443 1307.56634 1.71781 1296.62280
10 1989 7.54 101.9391635 768.62129 1.41653 1240.27745 1.78290 1229.51885
11 1989 7.93 101.9391635 808.37757 1.34363 1303.08610 1.69063 1291.42402
12 1989 8.46 101.9391635 862.40532 1.41168 1388.76593 1.77575 1375.96034
1 1990 8.43 102.3669657 862.95352 1.50450 1388.14422 1.89199 1374.94300
2 1990 8.32 102.3669657 851.69315 1.50382 1368.52701 1.89059 1355.11128
3 1990 8.53 102.3669657 873.19022 1.48257 1401.58659 1.86332 1387.45148
4 1990 8.43 102.3669657 862.95352 1.51839 1383.63694 1.90779 1369.27814
5 1990 8.87 102.3669657 907.99499 1.49894 1454.35630 1.88280 1438.86418
6 1990 9.02 102.3669657 923.35003 1.57555 1477.37527 1.97849 1461.21824
7 1990 9.27 102.3669657 948.94177 1.60049 1516.72199 2.00922 1499.70841
8 1990 8.40 102.3669657 859.88251 1.64312 1372.73280 2.06215 1356.89693
9 1990 7.46 102.3669657 763.65756 1.48713 1217.63033 1.86578 1203.18792
10 1990 8.03 102.3669657 822.00673 1.31910 1309.34733 1.65442 1293.46609
11 1990 7.82 102.3669657 800.50967 1.41846 1273.68691 1.77856 1257.86089
12 1990 7.78 102.3669657 796.41499 1.37983 1265.79206 1.72960 1249.69722
1 1991 7.99 102.3669657 817.91206 1.37127 1298.58741 1.71838 1281.71103
2 1991 8.45 104.7927232 885.49851 1.40680 1404.48667 1.76240 1385.86015
3 1991 8.23 104.7927232 862.44411 1.52153 1366.39862 1.90560 1347.87298
4 1991 8.25 104.7927232 864.53997 1.48027 1368.23889 1.85337 1349.29512
5 1991 8.44 104.7927232 884.45058 1.48226 1398.26759 1.85533 1378.51447
6 1991 7.92 104.7927232 829.95837 1.51479 1310.60361 1.89550 1291.68680
7 1991 8.23 104.7927232 862.44411 1.41982 1360.48267 1.77611 1340.46914
8 1991 8.08 104.7927232 846.72520 1.47386 1334.21265 1.84319 1314.19455
9 1991 8.41 104.7927232 881.30680 1.44540 1387.25861 1.80706 1366.06128
10 1991 8.26 104.7927232 865.58789 1.50286 1361.01273 1.87838 1339.81795
11 1991 8.05 104.7927232 843.58142 1.47443 1324.93628 1.84229 1303.91249
12 1991 8.47 104.7927232 887.59437 1.43535 1392.62804 1.79292 1370.14978
1 1992 8.54 104.7927232 894.92986 1.50868 1402.62868 1.88400 1379.58933
2 1992 8.38 105.9386947 887.76626 1.51951 1389.88163 1.89698 1366.64923
3 1992 8.04 105.9386947 851.74711 1.50571 1331.98454 1.87919 1309.32127
4 1992 8.15 105.9386947 863.61224 1.44298 1349.09657 1.80036 1325.76021
5 1992 8.55 105.9386947 905.77584 1.46152 1413.50115 1.82296 1388.66401
6 1992 8.53 105.9386947 903.65707 1.53129 1408.66342 1.90946 1383.50621
7 1992 8.26 105.9386947 875.05362 1.52605 1362.54896 1.90237 1337.81174
8 1992 8.53 105.9386947 903.65707 1.47609 1405.61139 1.83954 1379.70212
9 1992 8.40 105.9386947 889.88504 1.52275 1382.66666 1.89714 1356.77787
10 1992 8.13 105.9386947 861.28159 1.49789 1336.72592 1.86561 1311.30154
11 1992 8.10 105.9386947 858.10343 1.44812 1330.34523 1.80308 1304.65971
12 1992 8.12 105.9386947 860.22220 1.44121 1332.18883 1.79395 1306.08714
1 1993 8.14 105.9386947 862.34097 1.44320 1334.02687 1.79591 1307.50819
2 1993 8.15 109.2655872 890.51454 1.44520 1376.16570 1.79787 1348.42795
3 1993 8.62 109.2655872 941.86936 1.49085 1454.03656 1.85413 1424.33592
4 1993 9.00 109.2655872 983.39028 1.57521 1516.56041 1.95851 1485.16716
5 1993 9.17 109.2655872 1001.96543 1.64294 1543.56361 2.04215 1511.17816
6 1993 9.02 109.2655872 985.57560 1.67219 1516.64228 2.07792 1484.38086
7 1993 9.24 109.2655872 1009.61403 1.64303 1551.99053 2.04107 1518.54420
8 1993 9.86 109.2655872 1077.35869 1.68132 1654.44710 2.08805 1618.34981
9 1993 10.03 109.2655872 1095.93384 1.79232 1681.17973 2.22528 1644.02711
10 1993 10.34 109.2655872 1129.80617 1.82128 1731.31914 2.26059 1692.57892
11 1993 9.93 109.2655872 1085.00728 1.87560 1660.79356 2.32735 1623.13770
12 1993 10.85 109.2655872 1185.53162 1.79919 1812.86447 2.23187 1771.28717
1 1994 11.31 109.2655872 1235.79379 1.96394 1887.75930 2.43558 1843.94764
2 1994 11.08 109.9602821 1218.35993 2.04507 1859.08281 2.53549 1815.39880
3 1994 10.72 109.9602821 1178.77422 2.01401 1796.66539 2.49623 1753.91849
4 1994 10.95 109.9602821 1204.06509 1.94639 1833.26686 2.41170 1789.13751
5 1994 10.86 109.9602821 1194.16866 1.98604 1816.21288 2.46012 1771.97215
6 1994 10.86 109.9602821 1194.16866 1.96756 1814.24531 2.43652 1769.53562
7 1994 11.12 109.9602821 1222.75834 1.96543 1855.71485 2.43317 1809.46703
8 1994 11.42 109.9602821 1255.74642 2.01036 1903.76874 2.48808 1855.79551
9 1994 11.12 109.9602821 1222.75834 2.06242 1851.69489 2.55178 1804.49253
10 1994 11.37 109.9602821 1250.24841 2.00600 1891.31872 2.48124 1842.57992
11 1994 10.76 109.9602821 1183.17264 2.04893 1787.80062 2.53361 1741.19198
12 1994 10.69 109.9602821 1175.47542 1.93678 1774.23317 2.39420 1727.47033
1 1995 10.18 109.9602821 1119.39567 1.92209 1687.66572 2.37533 1642.68060
2 1995 10.14 110.5003621 1120.47367 1.82830 1687.46267 2.25874 1642.00380
3 1995 10.39 110.5003621 1148.09876 1.82808 1727.23869 2.25781 1680.22931
4 1995 10.93 110.5003621 1207.76896 1.87118 1815.13738 2.31037 1765.24559
5 1995 10.94 110.5003621 1208.87396 1.96640 1814.83168 2.42727 1764.43336
6 1995 11.09 110.5003621 1225.44902 1.96607 1837.74904 2.42615 1786.19962
7 1995 11.75 110.5003621 1298.37925 1.99089 1945.12824 2.45608 1890.04577
8 1995 11.53 110.5003621 1274.06917 2.10722 1906.60160 2.59888 1852.05880
9 1995 11.82 110.5003621 1306.11428 2.06549 1952.49053 2.54664 1896.09473
10 1995 11.55 110.5003621 1276.27918 2.11520 1905.77530 2.60719 1850.17573
11 1995 11.66 110.5003621 1288.43422 2.06459 1921.86095 2.54405 1865.25240
12 1995 11.82 110.5003621 1306.11428 2.08202 1946.15095 2.56478 1888.28284
1 1996 12.04 110.5003621 1330.42436 2.10833 1980.26540 2.59645 1920.83209
2 1996 11.84 113.0560895 1338.58410 2.14529 1990.26545 2.64121 1929.97171
3 1996 12.09 113.0560895 1366.84812 2.15612 2030.13351 2.65378 1968.06902
4 1996 12.48 113.1463899 1412.06695 2.19931 2095.09620 2.70616 2030.47161
5 1996 12.48 113.1463899 1412.06695 2.26969 2092.82651 2.79197 2027.67964
6 1996 12.61 113.1463899 1426.77598 2.26723 2112.35956 2.78813 2046.01318
7 1996 12.14 113.1463899 1373.59717 2.28839 2031.33929 2.81334 1966.94083
8 1996 12.33 113.1463899 1395.09499 2.20062 2060.93064 2.70461 1995.02030
9 1996 12.61 113.1463899 1426.77598 2.23267 2105.49931 2.74322 2037.58168
10 1996 12.55 113.1463899 1419.98719 2.28096 2093.20012 2.80174 2025.08486
11 1996 13.11 113.1463899 1483.34917 2.26763 2184.33424 2.78456 2112.66265
12 1996 13.25 113.1463899 1499.18967 2.36636 2205.29410 2.90498 2132.31852
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 149.86%
GROSS ANNUAL RETURN = 9.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2205.29 2205.29
TOTAL RETURN 120.53% 120.53%
AVERAGE ANNUAL RETURN 8.52% 8.52%
WITH DEATH BENEFIT CHARGE
ERV 2132.32 2132.32
TOTAL RETURN 113.23% 113.23%
AVERAGE ANNUAL RETURN 8.15% 8.15%
<PAGE>
T. Rowe Price Personal Strategy Bal
12/1996
Assume ($10000 @ $10.00 on 12/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
3/95 0.0900000000 10.70 0.841 100.841121
6/95 0.1000000000 11.39 0.885 101.726469
9/95 0.1100000000 11.76 0.952 102.677992
12/95 0.1000000000 12.39 0.829 103.506709
1/96 0.0800000000 12.47 0.664 104.170746
3/96 0.0800000000 12.56 0.664 104.834254
6/96 0.1100000000 12.59 0.916 105.750200
9/96 0.1100000000 12.96 0.898 106.647771
12/96 0.3400000000 13.51 2.684 109.331727
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 12.43 103.5067091 1286.58839 1000.00000 1000.00000
1 1996 12.62 104.1707457 1314.63481 1.08333 1020.71573 1.37503 1020.42403
2 1996 12.59 104.1707457 1311.50969 1.10578 1017.18353 1.40312 1016.59518
3 1996 12.55 104.8342537 1315.66988 1.10195 1019.30815 1.39785 1018.42203
4 1996 12.62 104.8342537 1323.00828 1.10425 1023.88928 1.40036 1022.70211
5 1996 12.72 104.8342537 1333.49171 1.10921 1030.89330 1.40625 1029.39968
6 1996 12.67 105.7502003 1339.85504 1.11680 1034.69585 1.41546 1032.89645
7 1996 12.42 105.7502003 1313.41749 1.12092 1013.15867 1.42027 1011.09543
8 1996 12.59 105.7502003 1331.39502 1.09759 1025.92880 1.39029 1023.54461
9 1996 12.97 106.6477714 1383.22160 1.11142 1064.75321 1.40741 1061.98023
10 1996 13.19 106.6477714 1406.68411 1.15348 1081.66031 1.46026 1078.53352
11 1996 13.85 106.6477714 1477.07163 1.17180 1134.61253 1.48302 1131.01806
12 1996 13.44 109.3317272 1469.41841 1.22916 1127.50454 1.55519 1123.60267
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.21%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1127.50 1060.42
TOTAL RETURN 12.75% 6.04%
WITH DEATH BENEFIT CHARGE
ERV 1123.60 1056.75
TOTAL RETURN 12.36% 5.67%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 12.43 103.5067091 1286.58839 1000.00000 1000.00000
1 1996 12.62 104.1707457 1314.63481 1.08333 1020.71573 1.37503 1020.42403
2 1996 12.59 104.1707457 1311.50969 1.10578 1017.18353 1.40312 1016.59518
3 1996 12.55 104.8342537 1315.66988 1.10195 1019.30815 1.39785 1018.42203
4 1996 12.62 104.8342537 1323.00828 1.10425 1023.88928 1.40036 1022.70211
5 1996 12.72 104.8342537 1333.49171 1.10921 1030.89330 1.40625 1029.39968
6 1996 12.67 105.7502003 1339.85504 1.11680 1034.69585 1.41546 1032.89645
7 1996 12.42 105.7502003 1313.41749 1.12092 1013.15867 1.42027 1011.09543
8 1996 12.59 105.7502003 1331.39502 1.09759 1025.92880 1.39029 1023.54461
9 1996 12.97 106.6477714 1383.22160 1.11142 1064.75321 1.40741 1061.98023
10 1996 13.19 106.6477714 1406.68411 1.15348 1081.66031 1.46026 1078.53352
11 1996 13.85 106.6477714 1477.07163 1.17180 1134.61253 1.48302 1131.01806
12 1996 13.44 109.3317272 1469.41841 1.22916 1127.50454 1.55519 1123.60267
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.21%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1127.50 1060.42
TOTAL RETURN 12.75% 6.04%
WITH DEATH BENEFIT CHARGE
ERV 1123.60 1056.75
TOTAL RETURN 12.36% 5.67%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 10.17 100.0000000 1017.00000 1.08333 1015.91667 1.37503 1015.62497
2 1995 10.49 100.0000000 1049.00000 1.10058 1046.78200 1.39652 1046.18518
3 1995 10.65 100.8411215 1073.95794 1.13401 1070.55316 1.43854 1069.63762
4 1995 10.86 100.8411215 1095.13458 1.15977 1090.50290 1.47079 1089.25828
5 1995 11.23 100.8411215 1132.44579 1.18138 1126.47493 1.49777 1124.87152
6 1995 11.39 101.7264694 1158.66449 1.22035 1151.33504 1.54674 1149.36811
7 1995 11.61 101.7264694 1181.04431 1.24728 1172.32601 1.58042 1169.98796
8 1995 11.63 101.7264694 1183.07884 1.27002 1173.07550 1.60877 1170.39467
9 1995 11.82 102.6779925 1213.65387 1.27083 1202.12118 1.60933 1199.03256
10 1995 11.90 102.6779925 1221.86811 1.30230 1208.95506 1.64871 1205.49913
11 1995 12.27 102.6779925 1259.85897 1.30970 1245.23472 1.65760 1241.32344
12 1995 12.43 103.5067091 1286.58839 1.34900 1270.30487 1.70686 1265.95275
1 1996 12.62 104.1707457 1314.63481 1.37616 1296.62016 1.74073 1291.80860
2 1996 12.59 104.1707457 1311.50969 1.40467 1292.13319 1.77628 1286.96146
3 1996 12.55 104.8342537 1315.66988 1.39981 1294.83211 1.76961 1289.27417
4 1996 12.62 104.8342537 1323.00828 1.40273 1300.65155 1.77279 1294.69255
5 1996 12.72 104.8342537 1333.49171 1.40904 1309.54878 1.78025 1303.17135
6 1996 12.67 105.7502003 1339.85504 1.41868 1314.37918 1.79190 1307.59810
7 1996 12.42 105.7502003 1313.41749 1.42391 1287.02040 1.79799 1279.99904
8 1996 12.59 105.7502003 1331.39502 1.39427 1303.24235 1.76004 1295.75911
9 1996 12.97 106.6477714 1383.22160 1.41185 1352.56119 1.78171 1344.41679
10 1996 13.19 106.6477714 1406.68411 1.46527 1374.03836 1.84862 1365.37247
11 1996 13.85 106.6477714 1477.07163 1.48854 1441.30382 1.87743 1431.81542
12 1996 13.44 109.3317272 1469.41841 1.56141 1432.27451 1.96879 1422.42789
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 46.94%
GROSS ANNUAL RETURN = 21.22%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1432.27 1359.23
TOTAL RETURN 43.23% 35.92%
AVERAGE ANNUAL RETURN 19.68% 16.59%
WITH DEATH BENEFIT CHARGE
ERV 1422.43 1349.88
TOTAL RETURN 42.24% 34.99%
AVERAGE ANNUAL RETURN 19.27% 16.18%
<PAGE>
T. Rowe Price Equity Income Fund
12/1996
Assume ($10000 @ $10.00 on 3/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
6/94 0.0900000000 10.10 0.891 100.891089
9/94 0.1000000000 10.52 0.959 101.850130
12/94 0.1000000000 10.43 0.977 102.826641
1/95 0.2600000000 10.54 2.537 105.363162
3/95 0.1100000000 10.95 1.058 106.421604
6/95 0.1100000000 11.57 1.012 107.433392
9/95 0.1100000000 12.27 0.963 108.396527
12/95 0.1100000000 13.15 0.907 109.303266
1/96 0.0100000000 13.39 0.082 109.384897
3/96 0.1000000000 13.76 0.795 110.179845
6/96 0.1100000000 13.92 0.871 111.050519
9/96 0.1000000000 14.32 0.775 111.826012
12/96 0.1800000000 15.46 1.302 113.127996
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 13.21 109.3032661 1443.89615 1000.00000 1000.00000
1 1996 13.57 109.3848966 1484.35305 1.08333 1026.93593 1.37503 1026.64423
2 1996 13.62 109.3848966 1489.82229 1.11251 1029.60726 1.41167 1029.01533
3 1996 13.70 110.1798450 1509.46388 1.11541 1042.06603 1.41493 1041.16678
4 1996 13.78 110.1798450 1518.27826 1.12890 1047.02219 1.43164 1045.81494
5 1996 14.01 110.1798450 1543.61963 1.13427 1063.36361 1.43803 1061.83246
6 1996 13.99 111.0505191 1553.59676 1.15198 1069.08465 1.46005 1067.23552
7 1996 13.59 111.0505191 1509.17655 1.15817 1037.35936 1.46748 1035.25380
8 1996 13.88 111.0505191 1541.38120 1.12381 1058.37200 1.42351 1055.92180
9 1996 14.37 111.8260115 1606.93979 1.14657 1102.24048 1.45193 1099.38072
10 1996 14.70 111.8260115 1643.84237 1.19409 1126.35880 1.51169 1123.11577
11 1996 15.55 111.8260115 1738.89448 1.22022 1190.26817 1.54432 1186.51352
12 1996 15.26 113.1279961 1726.33322 1.28946 1180.38057 1.63150 1176.31100
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 19.56%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1180.38 1110.15
TOTAL RETURN 18.04% 11.01%
WITH DEATH BENEFIT CHARGE
ERV 1176.31 1106.32
TOTAL RETURN 17.63% 10.63%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 13.21 109.3032661 1443.89615 1000.00000 1000.00000
1 1996 13.57 109.3848966 1484.35305 1.08333 1026.93593 1.37503 1026.64423
2 1996 13.62 109.3848966 1489.82229 1.11251 1029.60726 1.41167 1029.01533
3 1996 13.70 110.1798450 1509.46388 1.11541 1042.06603 1.41493 1041.16678
4 1996 13.78 110.1798450 1518.27826 1.12890 1047.02219 1.43164 1045.81494
5 1996 14.01 110.1798450 1543.61963 1.13427 1063.36361 1.43803 1061.83246
6 1996 13.99 111.0505191 1553.59676 1.15198 1069.08465 1.46005 1067.23552
7 1996 13.59 111.0505191 1509.17655 1.15817 1037.35936 1.46748 1035.25380
8 1996 13.88 111.0505191 1541.38120 1.12381 1058.37200 1.42351 1055.92180
9 1996 14.37 111.8260115 1606.93979 1.14657 1102.24048 1.45193 1099.38072
10 1996 14.70 111.8260115 1643.84237 1.19409 1126.35880 1.51169 1123.11577
11 1996 15.55 111.8260115 1738.89448 1.22022 1190.26817 1.54432 1186.51352
12 1996 15.26 113.1279961 1726.33322 1.28946 1180.38057 1.63150 1176.31100
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 19.56%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1180.38 1110.15
TOTAL RETURN 18.04% 11.01%
WITH DEATH BENEFIT CHARGE
ERV 1176.31 1106.32
TOTAL RETURN 17.63% 10.63%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 10.16 100.0000000 1016.00000 1.08333 1014.91667 1.37503 1014.62497
5 1994 10.35 100.0000000 1035.00000 1.09949 1032.79691 1.39514 1032.20411
6 1994 10.08 100.8910891 1016.98218 1.11886 1013.69858 1.41932 1012.81564
7 1994 10.36 100.8910891 1045.23168 1.09817 1040.75870 1.39266 1039.55676
8 1994 10.82 100.8910891 1091.64158 1.12749 1085.84251 1.42943 1084.28526
9 1994 10.50 101.8501299 1069.42636 1.17633 1062.56897 1.49093 1060.72881
10 1994 10.65 101.8501299 1084.70388 1.15112 1076.59741 1.45854 1074.42354
11 1994 10.41 101.8501299 1060.25985 1.16631 1051.16975 1.47737 1048.73381
12 1994 10.42 102.8266412 1071.45360 1.13877 1061.12876 1.44204 1058.36383
1 1995 10.57 105.3631618 1113.68862 1.14956 1101.80723 1.45529 1098.62759
2 1995 10.87 105.3631618 1145.29757 1.19362 1131.88534 1.51065 1128.29842
3 1995 10.90 106.4216045 1159.99549 1.22621 1145.18493 1.55145 1141.22674
4 1995 11.18 106.4216045 1189.79354 1.24062 1173.36190 1.56922 1168.97343
5 1995 11.58 106.4216045 1232.36218 1.27114 1214.07151 1.60738 1209.18979
6 1995 11.55 107.4333916 1240.85567 1.31524 1221.12370 1.66268 1215.86090
7 1995 11.80 107.4333916 1267.71402 1.32288 1246.23206 1.67185 1240.50639
8 1995 11.99 107.4333916 1288.12636 1.35008 1264.94843 1.70574 1258.77490
9 1995 12.33 108.3965271 1336.52918 1.37036 1311.10994 1.73086 1304.34395
10 1995 12.40 108.3965271 1344.11694 1.42037 1317.13302 1.79352 1309.95547
11 1995 12.90 108.3965271 1398.31520 1.42689 1368.81633 1.80123 1360.97502
12 1995 13.21 109.3032661 1443.89615 1.48288 1411.95281 1.87139 1403.46740
1 1996 13.57 109.3848966 1484.35305 1.52962 1449.98507 1.92981 1440.86170
2 1996 13.62 109.3848966 1489.82229 1.57082 1453.75687 1.98123 1444.18947
3 1996 13.70 110.1798450 1509.46388 1.57490 1471.34807 1.98581 1461.24363
4 1996 13.78 110.1798450 1518.27826 1.59396 1478.34592 2.00926 1467.76718
5 1996 14.01 110.1798450 1543.61963 1.60154 1501.41924 2.01823 1490.24724
6 1996 13.99 111.0505191 1553.59676 1.62654 1509.49707 2.04914 1497.83026
7 1996 13.59 111.0505191 1509.17655 1.63529 1464.70247 2.05957 1452.94496
8 1996 13.88 111.0505191 1541.38120 1.58676 1494.37132 1.99785 1481.95182
9 1996 14.37 111.8260115 1606.93979 1.61890 1556.31155 2.03773 1542.94500
10 1996 14.70 111.8260115 1643.84237 1.68600 1590.36548 2.12160 1576.25637
11 1996 15.55 111.8260115 1738.89448 1.72290 1680.60249 2.16740 1665.23304
12 1996 15.26 113.1279961 1726.33322 1.82065 1666.64167 2.28975 1650.91414
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 72.63%
GROSS ANNUAL RETURN = 21.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1666.64 1595.81
TOTAL RETURN 66.66% 59.58%
AVERAGE ANNUAL RETURN 20.38% 18.50%
WITH DEATH BENEFIT CHARGE
ERV 1650.91 1580.75
TOTAL RETURN 65.09% 58.08%
AVERAGE ANNUAL RETURN 19.97% 18.09%
<PAGE>
T. Rowe Price Internat. Stock Fund
12/1996
Assume ($10000 @ $10.00 on 3/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
1/95 0.0500000000 9.73 0.514 100.513875
1/96 0.1000000000 11.31 0.889 101.402591
12/96 0.1600000000 12.47 1.301 102.703667
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.26 100.5138746 1131.78623 1000.00000 1000.00000
1 1996 11.45 101.4025915 1161.05967 1.08333 1024.78148 1.37503 1024.48978
2 1996 11.52 101.4025915 1168.15785 1.11018 1029.93634 1.40871 1029.34433
3 1996 11.72 101.4025915 1188.43837 1.11576 1046.70142 1.41538 1045.79951
4 1996 12.06 101.4025915 1222.91525 1.13393 1075.93255 1.43801 1074.70040
5 1996 12.02 101.4025915 1218.85915 1.16559 1071.19836 1.47775 1069.65813
6 1996 12.17 101.4025915 1234.06954 1.16046 1083.40559 1.47082 1081.53580
7 1996 11.78 101.4025915 1194.52253 1.17369 1047.51307 1.48715 1045.38974
8 1996 11.96 101.4025915 1212.77499 1.13481 1062.38441 1.43745 1059.92599
9 1996 12.23 101.4025915 1240.15369 1.15092 1085.21709 1.45743 1082.39665
10 1996 12.17 101.4025915 1234.06954 1.17565 1078.71739 1.48833 1075.59812
11 1996 12.71 101.4025915 1288.82694 1.16861 1125.41299 1.47898 1121.84493
12 1996 12.64 102.7036672 1298.17435 1.21920 1132.35602 1.54257 1128.43871
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.70%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1132.36 1064.98
TOTAL RETURN 13.24% 6.50%
WITH DEATH BENEFIT CHARGE
ERV 1128.44 1061.30
TOTAL RETURN 12.84% 6.13%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 11.26 100.5138746 1131.78623 1000.00000 1000.00000
1 1996 11.45 101.4025915 1161.05967 1.08333 1024.78148 1.37503 1024.48978
2 1996 11.52 101.4025915 1168.15785 1.11018 1029.93634 1.40871 1029.34433
3 1996 11.72 101.4025915 1188.43837 1.11576 1046.70142 1.41538 1045.79951
4 1996 12.06 101.4025915 1222.91525 1.13393 1075.93255 1.43801 1074.70040
5 1996 12.02 101.4025915 1218.85915 1.16559 1071.19836 1.47775 1069.65813
6 1996 12.17 101.4025915 1234.06954 1.16046 1083.40559 1.47082 1081.53580
7 1996 11.78 101.4025915 1194.52253 1.17369 1047.51307 1.48715 1045.38974
8 1996 11.96 101.4025915 1212.77499 1.13481 1062.38441 1.43745 1059.92599
9 1996 12.23 101.4025915 1240.15369 1.15092 1085.21709 1.45743 1082.39665
10 1996 12.17 101.4025915 1234.06954 1.17565 1078.71739 1.48833 1075.59812
11 1996 12.71 101.4025915 1288.82694 1.16861 1125.41299 1.47898 1121.84493
12 1996 12.64 102.7036672 1298.17435 1.21920 1132.35602 1.54257 1128.43871
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.70%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1132.36 1064.98
TOTAL RETURN 13.24% 6.50%
WITH DEATH BENEFIT CHARGE
ERV 1128.44 1061.30
TOTAL RETURN 12.84% 6.13%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 10.23 100.0000000 1023.00000 1.08333 1021.91667 1.37503 1021.62497
5 1994 10.23 100.0000000 1023.00000 1.10708 1020.80959 1.40477 1020.22020
6 1994 10.10 100.0000000 1010.00000 1.10588 1006.73155 1.40284 1005.85269
7 1994 10.41 100.0000000 1041.00000 1.09063 1036.54060 1.38308 1035.34231
8 1994 10.79 100.0000000 1079.00000 1.12292 1073.25490 1.42363 1071.71216
9 1994 10.52 100.0000000 1052.00000 1.16269 1045.23597 1.47364 1043.42088
10 1994 10.73 100.0000000 1073.00000 1.13234 1064.96861 1.43474 1062.81489
11 1994 10.32 100.0000000 1032.00000 1.15372 1023.12178 1.46141 1020.74266
12 1994 10.18 100.0000000 1018.00000 1.10838 1008.13384 1.40356 1005.49182
1 1995 9.66 100.5138746 970.96403 1.09214 960.46158 1.38258 957.65120
2 1995 9.72 100.5138746 976.99486 1.04050 965.38668 1.31680 962.28254
3 1995 10.10 100.5138746 1015.19013 1.04584 1002.08230 1.32317 998.57947
4 1995 10.46 100.5138746 1051.37513 1.08559 1036.71449 1.37308 1032.79932
5 1995 10.52 100.5138746 1057.40596 1.12311 1041.53812 1.42013 1037.30347
6 1995 10.52 100.5138746 1057.40596 1.12833 1040.40979 1.42633 1035.87714
7 1995 11.05 100.5138746 1110.67831 1.12711 1091.69876 1.42437 1086.64050
8 1995 10.84 100.5138746 1089.57040 1.18267 1069.76887 1.49417 1064.49525
9 1995 10.97 100.5138746 1102.63720 1.15892 1081.43929 1.46372 1075.79762
10 1995 10.82 100.5138746 1087.56012 1.17156 1065.48050 1.47926 1059.60827
11 1995 10.90 100.5138746 1095.60123 1.15427 1072.20409 1.45700 1065.98572
12 1995 11.26 100.5138746 1131.78623 1.16155 1106.45478 1.46577 1099.72682
1 1996 11.45 101.4025915 1161.05967 1.19866 1133.87437 1.51216 1126.65889
2 1996 11.52 101.4025915 1168.15785 1.22836 1139.57799 1.54919 1131.99757
3 1996 11.72 101.4025915 1188.43837 1.23454 1158.12779 1.55653 1150.09377
4 1996 12.06 101.4025915 1222.91525 1.25464 1190.47071 1.58142 1181.87685
5 1996 12.02 101.4025915 1218.85915 1.28968 1185.23254 1.62512 1176.33174
6 1996 12.17 101.4025915 1234.06954 1.28400 1198.73930 1.61750 1189.39392
7 1996 11.78 101.4025915 1194.52253 1.29863 1159.02584 1.63546 1149.64313
8 1996 11.96 101.4025915 1212.77499 1.25561 1175.48031 1.58080 1165.62904
9 1996 12.23 101.4025915 1240.15369 1.27344 1200.74363 1.60278 1190.34063
10 1996 12.17 101.4025915 1234.06954 1.30081 1193.55202 1.63676 1182.86410
11 1996 12.71 101.4025915 1288.82694 1.29301 1245.21858 1.62648 1233.72296
12 1996 12.64 102.7036672 1298.17435 1.34899 1252.90073 1.69641 1240.97432
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 29.82%
GROSS ANNUAL RETURN = 9.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1252.90 1199.65
TOTAL RETURN 25.29% 19.97%
AVERAGE ANNUAL RETURN 8.53% 6.83%
WITH DEATH BENEFIT CHARGE
ERV 1240.97 1188.23
TOTAL RETURN 24.10% 18.82%
AVERAGE ANNUAL RETURN 8.16% 6.46%
<PAGE>
T. Rowe Price Limited Term Bond
12/1996
Assume ($10000 @ $10.00 on 5/13/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
5/94 0.0101080000 5.00 0.202 100.202160
6/94 0.0227390860 4.99 0.457 100.658774
7/94 0.0254802850 5.04 0.509 101.167666
8/94 0.0310070990 5.04 0.622 101.790070
9/94 0.0333695090 5.01 0.678 102.468051
10/94 0.0289283280 4.98 0.595 103.063278
11/94 0.0311052550 4.93 0.650 103.713543
12/94 0.0273000000 4.92 0.575 104.289027
1/95 0.0280000000 4.94 0.591 104.880139
2/95 0.0287000000 4.96 0.607 105.487006
3/95 0.0301000000 4.97 0.639 106.125871
4/95 0.0262000000 4.98 0.558 106.684204
5/95 0.0283000000 5.02 0.601 107.285631
6/95 0.0295000000 5.01 0.632 107.917352
7/95 0.0254251330 5.00 0.549 108.466115
8/95 0.0274278140 5.00 0.595 109.061113
9/95 0.0286146590 5.00 0.624 109.685262
10/95 0.0264917600 5.01 0.580 110.265253
11/95 0.0261262300 5.04 0.572 110.836844
12/95 0.0265365700 5.06 0.581 111.418114
1/96 0.0242378560 5.07 0.533 111.950764
2/96 0.0235427380 4.99 0.528 112.478946
3/96 0.0239636480 4.94 0.546 113.024575
4/96 0.0235631940 4.90 0.544 113.568089
5/96 0.0250830810 4.87 0.585 114.153025
6/96 0.0220828540 4.89 0.516 114.668531
7/96 0.0238193190 4.88 0.560 115.228229
8/96 0.0255629680 4.86 0.606 115.834315
9/96 0.0221304100 4.89 0.524 116.358540
10/96 0.0240874040 4.94 0.567 116.925903
11/96 0.0247578130 4.97 0.582 117.508364
12/96 0.0241618420 4.93 0.576 118.084270
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 5.06 111.4181142 563.77566 1000.00000 1000.00000
1 1996 5.07 111.9507643 567.59038 1.08333 1005.68304 1.37503 1005.39134
2 1996 4.99 112.4789462 561.26994 1.08949 993.39471 1.38245 992.81330
3 1996 4.94 113.0245749 558.34140 1.07618 987.13529 1.36515 986.26795
4 1996 4.90 113.5680892 556.48364 1.06940 982.78141 1.35615 981.63020
5 1996 4.87 114.1530250 555.92523 1.06468 980.73056 1.34977 979.29540
6 1996 4.89 114.6685311 560.72912 1.06246 988.14283 1.34656 986.41117
7 1996 4.88 115.2282291 562.31376 1.07049 989.86487 1.35635 987.84245
8 1996 4.86 115.8343146 562.95477 1.07235 989.92092 1.35832 987.61023
9 1996 4.89 116.3585397 568.99326 1.07241 999.46681 1.35800 996.84576
10 1996 4.94 116.9259031 577.61396 1.08276 1013.52678 1.37070 1010.57807
11 1996 4.97 117.5083638 584.01657 1.09799 1023.66331 1.38958 1020.39032
12 1996 4.93 118.0842702 582.15545 1.10897 1019.29218 1.40307 1015.73552
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 3.26%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1019.29 958.64
TOTAL RETURN 1.93% -4.14%
WITH DEATH BENEFIT CHARGE
ERV 1015.74 955.30
TOTAL RETURN 1.57% -4.47%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 5.06 111.4181142 563.77566 1000.00000 1000.00000
1 1996 5.07 111.9507643 567.59038 1.08333 1005.68304 1.37503 1005.39134
2 1996 4.99 112.4789462 561.26994 1.08949 993.39471 1.38245 992.81330
3 1996 4.94 113.0245749 558.34140 1.07618 987.13529 1.36515 986.26795
4 1996 4.90 113.5680892 556.48364 1.06940 982.78141 1.35615 981.63020
5 1996 4.87 114.1530250 555.92523 1.06468 980.73056 1.34977 979.29540
6 1996 4.89 114.6685311 560.72912 1.06246 988.14283 1.34656 986.41117
7 1996 4.88 115.2282291 562.31376 1.07049 989.86487 1.35635 987.84245
8 1996 4.86 115.8343146 562.95477 1.07235 989.92092 1.35832 987.61023
9 1996 4.89 116.3585397 568.99326 1.07241 999.46681 1.35800 996.84576
10 1996 4.94 116.9259031 577.61396 1.08276 1013.52678 1.37070 1010.57807
11 1996 4.97 117.5083638 584.01657 1.09799 1023.66331 1.38958 1020.39032
12 1996 4.93 118.0842702 582.15545 1.10897 1019.29218 1.40307 1015.73552
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 3.26%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1019.29 958.64
TOTAL RETURN 1.93% -4.14%
WITH DEATH BENEFIT CHARGE
ERV 1015.74 955.30
TOTAL RETURN 1.57% -4.47%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4 1994 5.00 100.0000000 500.00000 1000.00000 1000.00000
5 1994 5.00 100.2021600 501.01080 1.08333 1000.93827 1.37503 1000.64657
6 1994 4.99 100.6587743 502.28728 1.08435 1002.40412 1.37592 1001.82011
7 1994 5.04 101.1676661 509.88504 1.08594 1016.48086 1.37754 1015.59641
8 1994 5.04 101.7900700 513.02195 1.10119 1021.63327 1.39648 1020.44809
9 1994 5.01 102.4680510 513.36494 1.10677 1021.20952 1.40315 1019.72716
10 1994 4.98 103.0632777 513.25512 1.10631 1019.88476 1.40216 1018.10688
11 1994 4.93 103.7135434 511.30777 1.10488 1014.91032 1.39993 1012.84412
12 1994 4.92 104.2890271 513.10201 1.09949 1017.37228 1.39269 1015.00563
1 1995 4.94 104.8801389 518.10789 1.10215 1026.19571 1.39567 1023.51245
2 1995 4.96 105.4870059 523.21555 1.11171 1035.20054 1.40736 1032.19518
3 1995 4.97 106.1258708 527.44558 1.12147 1042.44834 1.41930 1039.12085
4 1995 4.98 106.6842037 531.28733 1.12932 1048.91190 1.42883 1045.26067
5 1995 5.02 107.2856306 538.57387 1.13632 1062.16126 1.43727 1058.15900
6 1995 5.01 107.9173524 540.66594 1.15067 1065.13651 1.45500 1060.81438
7 1995 5.00 108.4661150 542.33058 1.15390 1067.26203 1.45866 1062.62183
8 1995 5.00 109.0611127 545.30556 1.15620 1071.96036 1.46114 1066.98977
9 1995 5.00 109.6852620 548.42631 1.16129 1076.93383 1.46715 1071.62893
10 1995 5.01 110.2652532 552.42892 1.16668 1083.62699 1.47353 1077.97653
11 1995 5.04 110.8368435 558.61769 1.17393 1094.59276 1.48225 1088.57068
12 1995 5.06 111.4181142 563.77566 1.18581 1103.51382 1.49682 1097.12511
1 1996 5.07 111.9507643 567.59038 1.19547 1109.78513 1.50858 1103.04009
2 1996 4.99 112.4789462 561.26994 1.20227 1096.22479 1.51672 1089.24041
3 1996 4.94 113.0245749 558.34140 1.18758 1089.31744 1.49774 1082.05933
4 1996 4.90 113.5680892 556.48364 1.18009 1084.51287 1.48787 1076.97114
5 1996 4.87 114.1530250 555.92523 1.17489 1082.24972 1.48087 1074.40958
6 1996 4.89 114.6685311 560.72912 1.17244 1090.42927 1.47735 1082.21647
7 1996 4.88 115.2282291 562.31376 1.18130 1092.32956 1.48808 1083.78677
8 1996 4.86 115.8343146 562.95477 1.18336 1092.39141 1.49024 1083.53199
9 1996 4.89 116.3585397 568.99326 1.18342 1102.92544 1.48989 1093.66452
10 1996 4.94 116.9259031 577.61396 1.19484 1118.44080 1.50383 1108.73058
11 1996 4.97 117.5083638 584.01657 1.21164 1129.62660 1.52454 1119.49585
12 1996 4.93 118.0842702 582.15545 1.22376 1124.80300 1.53934 1114.38895
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 16.43%
GROSS ANNUAL RETURN = 5.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1124.80 1077.00
TOTAL RETURN 12.48% 7.70%
AVERAGE ANNUAL RETURN 4.56% 2.85%
WITH DEATH BENEFIT CHARGE
ERV 1114.39 1067.03
TOTAL RETURN 11.44% 6.70%
AVERAGE ANNUAL RETURN 4.19% 2.49%
<PAGE>
T. Rowe Price New American Growth
12/1996
Assume ($10000 @ $10.00 on 3/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
1/95 0.0200000000 10.31 0.194 100.193986
1/96 0.4000000000 14.88 2.693 102.887373
12/96 0.1400000000 17.53 0.822 103.709064
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 15.23 100.1939864 1525.95441 1000.00000 1000.00000
1 1996 15.14 102.8873732 1557.71483 1.08333 1019.73014 1.37503 1019.43844
2 1996 15.59 102.8873732 1604.01415 1.10471 1048.93446 1.40176 1048.33703
3 1996 16.19 102.8873732 1665.74657 1.13635 1088.16762 1.44150 1087.24205
4 1996 16.47 102.8873732 1694.55504 1.17885 1105.80823 1.49499 1104.55050
5 1996 16.82 102.8873732 1730.56562 1.19796 1128.10953 1.51879 1126.50425
6 1996 16.84 102.8873732 1732.62336 1.22212 1128.22880 1.54898 1126.29475
7 1996 15.65 102.8873732 1610.18739 1.22225 1047.28017 1.54869 1045.15634
8 1996 16.45 102.8873732 1692.49729 1.13455 1099.68071 1.43712 1097.14574
9 1996 17.38 102.8873732 1788.18255 1.19132 1160.65979 1.50861 1157.66421
10 1996 17.27 102.8873732 1776.86493 1.25738 1152.05646 1.59183 1148.74540
11 1996 17.98 102.8873732 1849.91497 1.24806 1198.17146 1.57956 1194.39277
12 1996 17.67 103.7090635 1832.53915 1.29802 1185.61929 1.64233 1181.53179
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 20.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1185.62 1115.07
TOTAL RETURN 18.56% 11.51%
WITH DEATH BENEFIT CHARGE
ERV 1181.53 1111.23
TOTAL RETURN 18.15% 11.12%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 15.23 100.1939864 1525.95441 1000.00000 1000.00000
1 1996 15.14 102.8873732 1557.71483 1.08333 1019.73014 1.37503 1019.43844
2 1996 15.59 102.8873732 1604.01415 1.10471 1048.93446 1.40176 1048.33703
3 1996 16.19 102.8873732 1665.74657 1.13635 1088.16762 1.44150 1087.24205
4 1996 16.47 102.8873732 1694.55504 1.17885 1105.80823 1.49499 1104.55050
5 1996 16.82 102.8873732 1730.56562 1.19796 1128.10953 1.51879 1126.50425
6 1996 16.84 102.8873732 1732.62336 1.22212 1128.22880 1.54898 1126.29475
7 1996 15.65 102.8873732 1610.18739 1.22225 1047.28017 1.54869 1045.15634
8 1996 16.45 102.8873732 1692.49729 1.13455 1099.68071 1.43712 1097.14574
9 1996 17.38 102.8873732 1788.18255 1.19132 1160.65979 1.50861 1157.66421
10 1996 17.27 102.8873732 1776.86493 1.25738 1152.05646 1.59183 1148.74540
11 1996 17.98 102.8873732 1849.91497 1.24806 1198.17146 1.57956 1194.39277
12 1996 17.67 103.7090635 1832.53915 1.29802 1185.61929 1.64233 1181.53179
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 20.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1185.62 1115.07
TOTAL RETURN 18.56% 11.51%
WITH DEATH BENEFIT CHARGE
ERV 1181.53 1111.23
TOTAL RETURN 18.15% 11.12%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 10.12 100.0000000 1012.00000 1.08333 1010.91667 1.37503 1010.62497
5 1994 9.98 100.0000000 998.00000 1.09516 995.83649 1.38964 995.25435
6 1994 9.67 100.0000000 967.00000 1.07882 963.82487 1.36851 962.97112
7 1994 9.79 100.0000000 979.00000 1.04414 974.74133 1.32412 973.59701
8 1994 10.45 100.0000000 1045.00000 1.05597 1039.39826 1.33873 1037.89404
9 1994 10.22 100.0000000 1022.00000 1.12601 1015.39553 1.42714 1013.62330
10 1994 10.37 100.0000000 1037.00000 1.10001 1029.19859 1.39377 1027.10658
11 1994 9.95 100.0000000 995.00000 1.11497 986.39959 1.41231 984.09498
12 1994 10.10 100.0000000 1010.00000 1.06860 1000.20134 1.35316 997.57742
1 1995 10.37 100.1939864 1039.01164 1.08355 1027.84797 1.37170 1024.86052
2 1995 10.66 100.1939864 1068.06790 1.11350 1055.47852 1.40922 1052.11182
3 1995 11.37 100.1939864 1139.20563 1.14344 1124.63432 1.44669 1120.74012
4 1995 11.23 100.1939864 1125.17847 1.21835 1109.56822 1.54105 1105.39928
5 1995 11.55 100.1939864 1157.24054 1.20203 1139.98345 1.51996 1135.37778
6 1995 12.48 100.1939864 1250.42095 1.23498 1230.53934 1.56118 1225.23663
7 1995 13.43 100.1939864 1345.60524 1.33308 1322.87712 1.68474 1316.81910
8 1995 13.76 100.1939864 1378.66925 1.43312 1353.94955 1.81067 1347.36511
9 1995 14.36 100.1939864 1438.78565 1.46678 1411.52127 1.85267 1404.26383
10 1995 14.58 100.1939864 1460.82832 1.52915 1431.61710 1.93091 1423.84671
11 1995 15.05 100.1939864 1507.91950 1.55092 1476.21570 1.95784 1467.78791
12 1995 15.23 100.1939864 1525.95441 1.59923 1492.27220 2.01826 1483.32459
1 1996 15.14 102.8873732 1557.71483 1.61663 1521.71495 2.03962 1512.15811
2 1996 15.59 102.8873732 1604.01415 1.64852 1565.29573 2.07927 1555.02410
3 1996 16.19 102.8873732 1665.74657 1.69574 1623.84229 2.13821 1612.73287
4 1996 16.47 102.8873732 1694.55504 1.75916 1650.16688 2.21756 1638.40692
5 1996 16.82 102.8873732 1730.56562 1.78768 1683.44649 2.25286 1670.97145
6 1996 16.84 102.8873732 1732.62336 1.82373 1683.62448 2.29764 1670.66069
7 1996 15.65 102.8873732 1610.18739 1.82393 1562.82709 2.29721 1550.30610
8 1996 16.45 102.8873732 1692.49729 1.69306 1641.02295 2.13172 1627.42325
9 1996 17.38 102.8873732 1788.18255 1.77777 1732.02034 2.23776 1717.19179
10 1996 17.27 102.8873732 1776.86493 1.87636 1719.18183 2.36120 1703.96229
11 1996 17.98 102.8873732 1849.91497 1.86245 1787.99796 2.34300 1771.67217
12 1996 17.67 103.7090635 1832.53915 1.93700 1769.26672 2.43611 1752.59516
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 83.25%
GROSS ANNUAL RETURN = 24.61%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1769.27 1694.07
TOTAL RETURN 76.93% 69.41%
AVERAGE ANNUAL RETURN 23.03% 21.10%
WITH DEATH BENEFIT CHARGE
ERV 1752.60 1678.11
TOTAL RETURN 75.26% 67.81%
AVERAGE ANNUAL RETURN 22.60% 20.68%
<PAGE>
Fidelity Index 500
12/1996
Assume ($10000 @ $10.00 on 8/27/1992)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/92 0.5500000000 52.28 1.052 101.052028
2/93 0.1500000000 54.16 0.280 101.331898
12/93 1.8200000000 55.63 3.315 104.647089
2/94 0.1000000000 56.17 0.186 104.833393
2/95 1.0800000000 57.65 1.964 106.797315
2/96 3.2500000000 75.06 4.624 111.421499
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 75.71 106.7973146 8085.62469 1000.00000 1000.00000
1 1996 78.30 106.7973146 8362.22973 1.08333 1033.12615 1.37503 1032.83445
2 1996 75.75 111.4214989 8440.17854 1.11922 1041.63725 1.42018 1041.04187
3 1996 76.53 111.4214989 8527.08731 1.12844 1051.23458 1.43147 1050.33004
4 1996 77.60 111.4214989 8646.30831 1.13884 1064.79352 1.44424 1063.57093
5 1996 79.58 111.4214989 8866.92288 1.15353 1090.80870 1.46245 1089.24600
6 1996 79.92 111.4214989 8904.80619 1.18171 1094.28739 1.49775 1092.40197
7 1996 76.38 111.4214989 8510.37408 1.18548 1044.63122 1.50209 1042.51271
8 1996 77.95 111.4214989 8685.30584 1.13168 1064.97206 1.43349 1062.50819
9 1996 82.31 111.4214989 9171.10357 1.15372 1123.38573 1.46098 1120.47679
10 1996 84.58 111.4214989 9424.03037 1.21700 1153.15021 1.54069 1149.83735
11 1996 90.92 111.4214989 10130.44268 1.24925 1238.33951 1.58106 1234.44651
12 1996 89.13 111.4214989 9930.99819 1.34153 1212.61800 1.69741 1208.44577
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.82%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1212.62 1140.47
TOTAL RETURN 21.26% 14.05%
WITH DEATH BENEFIT CHARGE
ERV 1208.45 1136.54
TOTAL RETURN 20.84% 13.65%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 75.71 106.7973146 8085.62469 1000.00000 1000.00000
1 1996 78.30 106.7973146 8362.22973 1.08333 1033.12615 1.37503 1032.83445
2 1996 75.75 111.4214989 8440.17854 1.11922 1041.63725 1.42018 1041.04187
3 1996 76.53 111.4214989 8527.08731 1.12844 1051.23458 1.43147 1050.33004
4 1996 77.60 111.4214989 8646.30831 1.13884 1064.79352 1.44424 1063.57093
5 1996 79.58 111.4214989 8866.92288 1.15353 1090.80870 1.46245 1089.24600
6 1996 79.92 111.4214989 8904.80619 1.18171 1094.28739 1.49775 1092.40197
7 1996 76.38 111.4214989 8510.37408 1.18548 1044.63122 1.50209 1042.51271
8 1996 77.95 111.4214989 8685.30584 1.13168 1064.97206 1.43349 1062.50819
9 1996 82.31 111.4214989 9171.10357 1.15372 1123.38573 1.46098 1120.47679
10 1996 84.58 111.4214989 9424.03037 1.21700 1153.15021 1.54069 1149.83735
11 1996 90.92 111.4214989 10130.44268 1.24925 1238.33951 1.58106 1234.44651
12 1996 89.13 111.4214989 9930.99819 1.34153 1212.61800 1.69741 1208.44577
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.82%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1212.62 1140.47
TOTAL RETURN 21.26% 14.05%
WITH DEATH BENEFIT CHARGE
ERV 1208.45 1136.54
TOTAL RETURN 20.84% 13.65%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 55.74 104.6470890 5833.02874 1000.00000 1000.00000
1 1994 57.62 104.6470890 6029.76527 1.08333 1032.64469 1.37503 1032.35299
2 1994 55.96 104.8333932 5866.47669 1.11870 1003.56154 1.41952 1002.97692
3 1994 53.53 104.8333932 5611.73154 1.08719 958.89582 1.37913 958.04465
4 1994 54.17 104.8333932 5678.82491 1.03880 969.32149 1.31734 968.18160
5 1994 55.01 104.8333932 5766.88496 1.05010 983.30240 1.33128 981.86366
6 1994 53.67 104.8333932 5626.40822 1.06524 958.28469 1.35010 956.59614
7 1994 55.44 104.8333932 5811.96332 1.03814 988.85013 1.31535 986.82868
8 1994 57.65 104.8333932 6043.64512 1.07125 1027.19732 1.35692 1024.80962
9 1994 56.25 104.8333932 5896.87837 1.11280 1001.13958 1.40915 998.51351
10 1994 57.50 104.8333932 6027.92011 1.08457 1022.30255 1.37299 1019.32971
11 1994 55.41 104.8333932 5808.81832 1.10749 984.03658 1.40161 980.87768
12 1994 56.22 104.8333932 5893.73337 1.06604 997.35549 1.34874 993.86771
1 1995 57.71 104.8333932 6049.93512 1.08047 1022.70795 1.36660 1018.84160
2 1995 58.82 106.7973146 6281.81804 1.10793 1060.79854 1.40094 1056.49099
3 1995 60.54 106.7973146 6465.50942 1.14920 1090.66895 1.45271 1085.93193
4 1995 62.32 106.7973146 6655.60864 1.18156 1121.55530 1.49319 1116.36736
5 1995 64.77 106.7973146 6917.26207 1.21502 1164.43223 1.53504 1158.72032
6 1995 66.24 106.7973146 7074.25412 1.26147 1189.59836 1.59328 1183.42500
7 1995 68.45 106.7973146 7310.27618 1.28873 1227.99882 1.62725 1221.28098
8 1995 68.62 106.7973146 7328.43173 1.33033 1229.71831 1.67930 1222.63481
9 1995 71.49 106.7973146 7634.94002 1.33219 1279.81851 1.68116 1272.08979
10 1995 71.25 106.7973146 7609.30866 1.38647 1274.13555 1.74917 1266.07007
11 1995 74.35 106.7973146 7940.38034 1.38031 1328.19131 1.74089 1319.41434
12 1995 75.71 106.7973146 8085.62469 1.43887 1351.04753 1.81424 1341.73465
1 1996 78.30 106.7973146 8362.22973 1.46363 1395.80253 1.84493 1385.78977
2 1996 75.75 111.4214989 8440.17854 1.51212 1407.30143 1.90551 1396.80194
3 1996 76.53 111.4214989 8527.08731 1.52458 1420.26788 1.92065 1409.26421
4 1996 77.60 111.4214989 8646.30831 1.53862 1438.58665 1.93779 1427.02997
5 1996 79.58 111.4214989 8866.92288 1.55847 1473.73439 1.96221 1461.47909
6 1996 79.92 111.4214989 8904.80619 1.59655 1478.43427 2.00958 1465.71357
7 1996 76.38 111.4214989 8510.37408 1.60164 1411.34643 2.01540 1398.77542
8 1996 77.95 111.4214989 8685.30584 1.52896 1438.82787 1.92336 1425.60405
9 1996 82.31 111.4214989 9171.10357 1.55873 1517.74752 1.96025 1503.38253
10 1996 84.58 111.4214989 9424.03037 1.64423 1557.96074 2.06720 1542.77661
11 1996 90.92 111.4214989 10130.44268 1.68779 1673.05554 2.12137 1656.29964
12 1996 89.13 111.4214989 9930.99819 1.81248 1638.30455 2.27747 1621.41355
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 70.25%
GROSS ANNUAL RETURN = 19.41%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1638.30 1568.68
TOTAL RETURN 63.83% 56.87%
AVERAGE ANNUAL RETURN 17.89% 16.19%
WITH DEATH BENEFIT CHARGE
ERV 1621.41 1552.50
TOTAL RETURN 62.14% 55.25%
AVERAGE ANNUAL RETURN 17.48% 15.79%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
7 1992 50.00 100.0000000 5000.00000 1000.00000 1000.00000
8 1992 50.07 100.0000000 5007.00000 1.08333 1000.31667 1.37503 1000.02497
9 1992 50.65 100.0000000 5065.00000 1.08368 1010.82044 1.37507 1010.23397
10 1992 50.76 100.0000000 5076.00000 1.09506 1011.92065 1.38911 1011.03886
11 1992 52.49 100.0000000 5249.00000 1.09625 1045.31264 1.39021 1044.10683
12 1992 52.60 101.0520275 5315.33665 1.13242 1057.39084 1.43568 1055.86652
1 1993 52.98 101.0520275 5353.73642 1.14551 1063.88427 1.45185 1062.04261
2 1993 53.57 101.3318984 5428.34980 1.15254 1077.55876 1.46034 1075.38362
3 1993 54.75 101.3318984 5547.92144 1.16736 1100.12707 1.47869 1097.59268
4 1993 53.40 101.3318984 5411.12337 1.19180 1071.80884 1.50923 1069.01953
5 1993 54.79 101.3318984 5551.97471 1.16113 1098.54686 1.46994 1095.37613
6 1993 54.93 101.3318984 5566.16118 1.19009 1100.16378 1.50618 1096.66887
7 1993 54.68 101.3318984 5540.82820 1.19184 1093.96482 1.50796 1090.16970
8 1993 56.75 101.3318984 5750.58523 1.18513 1134.19351 1.49902 1129.94082
9 1993 56.29 101.3318984 5703.97256 1.22871 1123.77133 1.55371 1119.22812
10 1993 57.44 101.3318984 5820.50424 1.21742 1145.51247 1.53898 1140.55488
11 1993 56.88 101.3318984 5763.75838 1.24097 1133.10355 1.56830 1127.86697
12 1993 55.74 104.6470890 5833.02874 1.22753 1145.49396 1.55085 1139.87111
1 1994 57.62 104.6470890 6029.76527 1.24095 1182.88825 1.56736 1176.74935
2 1994 55.96 104.8333932 5866.47669 1.28146 1149.57368 1.61807 1143.26441
3 1994 53.53 104.8333932 5611.73154 1.24537 1098.40936 1.57203 1092.04742
4 1994 54.17 104.8333932 5678.82491 1.18994 1110.35190 1.50160 1103.60224
5 1994 55.01 104.8333932 5766.88496 1.20288 1126.36696 1.51749 1119.19802
6 1994 53.67 104.8333932 5626.40822 1.22023 1097.70932 1.53893 1090.39631
7 1994 55.44 104.8333932 5811.96332 1.18919 1132.72184 1.49933 1124.85750
8 1994 57.65 104.8333932 6043.64512 1.22712 1176.64832 1.54672 1168.15089
9 1994 56.25 104.8333932 5896.87837 1.27470 1146.79933 1.60625 1138.17671
10 1994 57.50 104.8333932 6027.92011 1.24237 1171.04140 1.56503 1161.90449
11 1994 55.41 104.8333932 5808.81832 1.26863 1127.20796 1.59766 1118.07413
12 1994 56.22 104.8333932 5893.73337 1.22114 1142.46468 1.53739 1132.88109
1 1995 57.71 104.8333932 6049.93512 1.23767 1171.50578 1.55775 1161.34811
2 1995 58.82 106.7973146 6281.81804 1.26913 1215.13832 1.59689 1204.26356
3 1995 60.54 106.7973146 6465.50942 1.31640 1249.35469 1.65590 1237.82244
4 1995 62.32 106.7973146 6655.60864 1.35347 1284.73481 1.70205 1272.51491
5 1995 64.77 106.7973146 6917.26207 1.39180 1333.85008 1.74975 1320.79182
6 1995 66.24 106.7973146 7074.25412 1.44500 1362.67773 1.81613 1348.95197
7 1995 68.45 106.7973146 7310.27618 1.47623 1406.66523 1.85485 1392.10291
8 1995 68.62 106.7973146 7328.43173 1.52389 1408.63489 1.91419 1393.64610
9 1995 71.49 106.7973146 7634.94002 1.52602 1466.02437 1.91631 1450.01840
10 1995 71.25 106.7973146 7609.30866 1.58819 1459.51457 1.99382 1443.15670
11 1995 74.35 106.7973146 7940.38034 1.58114 1521.43511 1.98439 1503.96229
12 1995 75.71 106.7973146 8085.62469 1.64822 1547.61678 2.06800 1529.40456
1 1996 78.30 106.7973146 8362.22973 1.67658 1598.88336 2.10298 1579.62172
2 1996 75.75 111.4214989 8440.17854 1.73212 1612.05528 2.17203 1592.17419
3 1996 76.53 111.4214989 8527.08731 1.74639 1626.90827 2.18929 1606.37956
4 1996 77.60 111.4214989 8646.30831 1.76248 1647.89232 2.20883 1626.63024
5 1996 79.58 111.4214989 8866.92288 1.78522 1688.15384 2.23667 1665.89780
6 1996 79.92 111.4214989 8904.80619 1.82883 1693.53752 2.29066 1670.72456
7 1996 76.38 111.4214989 8510.37408 1.83467 1616.68881 2.29730 1594.42370
8 1996 77.95 111.4214989 8685.30584 1.75141 1648.16863 2.19239 1625.00488
9 1996 82.31 111.4214989 9171.10357 1.78552 1738.57061 2.23444 1713.66231
10 1996 84.58 111.4214989 9424.03037 1.88345 1784.63461 2.35634 1758.56649
11 1996 90.92 111.4214989 10130.44268 1.93335 1916.47500 2.41809 1887.96812
12 1996 89.13 111.4214989 9930.99819 2.07618 1876.66796 2.59602 1848.20247
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 98.62%
GROSS ANNUAL RETURN = 17.11%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1876.67 1828.81
TOTAL RETURN 87.67% 82.88%
AVERAGE ANNUAL RETURN 15.59% 14.90%
WITH DEATH BENEFIT CHARGE
ERV 1848.20 1801.07
TOTAL RETURN 84.82% 80.11%
AVERAGE ANNUAL RETURN 15.18% 14.50%
<PAGE>
Scudder Discovery
12/1996
Assume ($10000 @ $10.00 on 5/ 1/1996)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4 1996 6.00 100.0000000 600.00000 1000.00000 1000.00000
5 1996 6.12 100.0000000 612.00000 1.08333 1018.91667 1.37503 1018.62497
6 1996 6.10 100.0000000 610.00000 1.10383 1014.48305 1.40064 1013.89548
7 1996 5.87 100.0000000 587.00000 1.09902 975.13302 1.39414 974.27250
8 1996 6.05 100.0000000 605.00000 1.05639 1003.97849 1.33966 1002.80832
9 1996 6.23 100.0000000 623.00000 1.08764 1032.76129 1.37889 1031.26504
10 1996 6.21 100.0000000 621.00000 1.11882 1028.32702 1.41802 1026.53638
11 1996 6.33 100.0000000 633.00000 1.11402 1047.08405 1.41152 1044.96131
12 1996 6.33 100.0000000 633.00000 1.13434 1045.94971 1.43686 1043.52445
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 5.50%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1045.95 983.72
TOTAL RETURN 4.59% -1.63%
WITH DEATH BENEFIT CHARGE
ERV 1043.52 981.43
TOTAL RETURN 4.35% -1.86%
<PAGE>
Scudder Growth & Income
12/1996
Assume ($10000 @ $10.00 on 5/ 2/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
10/94 0.0350000000 6.35 0.551 100.551181
1/95 0.0450000000 6.29 0.719 101.270546
2/95 0.0400000000 6.43 0.630 101.900534
4/95 0.0400000000 6.75 0.604 102.504389
7/95 0.0500000000 7.24 0.708 103.212292
10/95 0.0500000000 7.40 0.697 103.909672
1/96 0.0550000000 8.04 0.711 104.620497
2/96 0.1050000000 8.25 1.332 105.952031
4/96 0.0500000000 8.36 0.634 106.585715
7/96 0.0550000000 8.02 0.731 107.316664
10/96 0.0650000000 8.78 0.794 108.111150
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 7.98 103.9096721 829.19918 1000.00000 1000.00000
1 1996 8.17 104.6204970 854.74946 1.08333 1029.72986 1.37503 1029.43816
2 1996 8.18 105.9520306 866.68761 1.11554 1042.99640 1.41551 1042.40065
3 1996 8.30 105.9520306 879.40185 1.12991 1057.16716 1.43334 1056.25926
4 1996 8.36 106.5857150 891.05658 1.14526 1070.03255 1.45239 1068.80548
5 1996 8.45 106.5857150 900.64929 1.15920 1080.39284 1.46964 1078.84212
6 1996 8.45 106.5857150 900.64929 1.17043 1079.22241 1.48344 1077.35867
7 1996 8.11 107.3166644 870.33815 1.16916 1041.73227 1.48140 1039.61901
8 1996 8.33 107.3166644 893.94781 1.12854 1068.86280 1.42951 1066.39125
9 1996 8.71 107.3166644 934.72815 1.15793 1116.46452 1.46632 1113.57183
10 1996 8.81 108.1111500 952.45923 1.20950 1136.43350 1.53120 1133.16424
11 1996 9.38 108.1111500 1014.08259 1.23114 1208.72871 1.55814 1204.92093
12 1996 9.37 108.1111500 1013.00148 1.30946 1206.13063 1.65681 1201.97956
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.17%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1206.13 1134.37
TOTAL RETURN 20.61% 13.44%
WITH DEATH BENEFIT CHARGE
ERV 1201.98 1130.46
TOTAL RETURN 20.20% 13.05%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 7.98 103.9096721 829.19918 1000.00000 1000.00000
1 1996 8.17 104.6204970 854.74946 1.08333 1029.72986 1.37503 1029.43816
2 1996 8.18 105.9520306 866.68761 1.11554 1042.99640 1.41551 1042.40065
3 1996 8.30 105.9520306 879.40185 1.12991 1057.16716 1.43334 1056.25926
4 1996 8.36 106.5857150 891.05658 1.14526 1070.03255 1.45239 1068.80548
5 1996 8.45 106.5857150 900.64929 1.15920 1080.39284 1.46964 1078.84212
6 1996 8.45 106.5857150 900.64929 1.17043 1079.22241 1.48344 1077.35867
7 1996 8.11 107.3166644 870.33815 1.16916 1041.73227 1.48140 1039.61901
8 1996 8.33 107.3166644 893.94781 1.12854 1068.86280 1.42951 1066.39125
9 1996 8.71 107.3166644 934.72815 1.15793 1116.46452 1.46632 1113.57183
10 1996 8.81 108.1111500 952.45923 1.20950 1136.43350 1.53120 1133.16424
11 1996 9.38 108.1111500 1014.08259 1.23114 1208.72871 1.55814 1204.92093
12 1996 9.37 108.1111500 1013.00148 1.30946 1206.13063 1.65681 1201.97956
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.17%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1206.13 1134.37
TOTAL RETURN 20.61% 13.44%
WITH DEATH BENEFIT CHARGE
ERV 1201.98 1130.46
TOTAL RETURN 20.20% 13.05%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4 1994 6.00 100.0000000 600.00000 1000.00000 1000.00000
5 1994 6.15 100.0000000 615.00000 1.08333 1023.91667 1.37503 1023.62497
6 1994 6.06 100.0000000 606.00000 1.10924 1007.82328 1.40752 1007.23757
7 1994 6.19 100.0000000 619.00000 1.09181 1028.35144 1.38499 1027.45999
8 1994 6.53 100.0000000 653.00000 1.11405 1083.72196 1.41279 1082.48281
9 1994 6.45 100.0000000 645.00000 1.17403 1069.27109 1.48845 1067.73270
10 1994 6.43 100.5511811 646.54409 1.15838 1070.67249 1.46817 1068.82062
11 1994 6.17 100.5511811 620.40079 1.15990 1026.21946 1.46966 1024.13271
12 1994 6.26 100.5511811 629.45039 1.11174 1040.07689 1.40822 1037.66322
1 1995 6.30 101.2705457 638.00444 1.12675 1053.08448 1.42682 1050.33793
2 1995 6.43 101.9005335 655.22043 1.14084 1080.36020 1.44425 1077.23613
3 1995 6.58 101.9005335 670.50551 1.17039 1104.39261 1.48124 1100.88482
4 1995 6.72 102.5043885 688.82949 1.19643 1133.37770 1.51375 1129.45672
5 1995 6.97 102.5043885 714.45559 1.22783 1174.31422 1.55304 1169.92216
6 1995 7.09 102.5043885 726.75611 1.27217 1193.25980 1.60868 1188.45561
7 1995 7.20 103.2122918 743.12850 1.29270 1218.84890 1.63417 1213.59501
8 1995 7.28 103.2122918 751.38548 1.32042 1231.07124 1.66873 1225.41066
9 1995 7.56 103.2122918 780.28493 1.33366 1277.08647 1.68498 1270.85686
10 1995 7.38 103.9096721 766.85338 1.38351 1253.71965 1.74747 1247.23332
11 1995 7.73 103.9096721 803.22177 1.35820 1311.81971 1.71499 1304.66896
12 1995 7.98 103.9096721 829.19918 1.42114 1352.82482 1.79396 1345.06998
1 1996 8.17 104.6204970 854.74946 1.46556 1393.04412 1.84952 1384.66637
2 1996 8.18 105.9520306 866.68761 1.50913 1410.99141 1.90396 1402.10182
3 1996 8.30 105.9520306 879.40185 1.52857 1430.16198 1.92794 1420.74262
4 1996 8.36 106.5857150 891.05658 1.54934 1447.56659 1.95357 1437.61817
5 1996 8.45 106.5857150 900.64929 1.56820 1461.58224 1.97677 1451.11815
6 1996 8.45 106.5857150 900.64929 1.58338 1459.99886 1.99534 1449.12281
7 1996 8.11 107.3166644 870.33815 1.58167 1409.28127 1.99259 1398.36033
8 1996 8.33 107.3166644 893.94781 1.52672 1445.98413 1.92279 1434.37086
9 1996 8.71 107.3166644 934.72815 1.56648 1510.38091 1.97231 1497.83204
10 1996 8.81 108.1111500 952.45923 1.63625 1537.39545 2.05957 1524.18521
11 1996 9.38 108.1111500 1014.08259 1.66551 1635.19820 2.09581 1620.70297
12 1996 9.37 108.1111500 1013.00148 1.77146 1631.68345 2.22852 1616.74662
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.83%
GROSS ANNUAL RETURN = 21.71%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1631.68 1562.34
TOTAL RETURN 63.17% 56.23%
AVERAGE ANNUAL RETURN 20.16% 18.22%
WITH DEATH BENEFIT CHARGE
ERV 1616.75 1548.03
TOTAL RETURN 61.67% 54.80%
AVERAGE ANNUAL RETURN 19.75% 17.81%
<PAGE>
Pioneer Capital Growth
12/1996
Assume ($10000 @ $10.00 on 7/25/1990)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/91 0.3600000000 10.65 3.380 103.380282
12/92 0.6600000000 13.44 5.077 108.456992
2/93 0.2550000000 8.12 3.406 111.862969
12/93 1.6600000000 14.42 12.877 124.740398
12/94 0.9470000000 15.56 7.592 132.332246
12/95 1.9626000000 18.40 14.115 146.447206
12/96 0.9472000000 19.64 7.063 153.510078
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 18.70 146.4472063 2738.56276 1000.00000 1000.00000
1 1996 18.88 146.4472063 2764.92326 1.08333 1008.54234 1.37503 1008.25064
2 1996 18.99 146.4472063 2781.03245 1.09259 1013.32579 1.38638 1012.73860
3 1996 19.18 146.4472063 2808.85742 1.09777 1022.36661 1.39255 1021.47877
4 1996 20.70 146.4472063 3031.45717 1.10756 1102.28080 1.40457 1101.02559
5 1996 21.46 146.4472063 3142.75705 1.19414 1141.55688 1.51395 1139.93578
6 1996 20.57 146.4472063 3012.41903 1.23669 1092.97697 1.56745 1091.09233
7 1996 19.06 146.4472063 2791.28375 1.18406 1011.55979 1.50029 1009.49727
8 1996 19.66 146.4472063 2879.15208 1.09586 1042.30737 1.38809 1039.88769
9 1996 20.11 146.4472063 2945.05332 1.12917 1065.03570 1.42988 1062.25992
10 1996 19.85 146.4472063 2906.97705 1.15379 1050.11218 1.46064 1047.06543
11 1996 20.49 146.4472063 3000.70326 1.13762 1082.83208 1.43975 1079.38497
12 1996 19.92 153.5100777 3057.92075 1.17307 1102.30648 1.48419 1098.48252
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.66%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1102.31 1036.72
TOTAL RETURN 10.23% 3.67%
WITH DEATH BENEFIT CHARGE
ERV 1098.48 1033.12
TOTAL RETURN 9.85% 3.31%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 18.70 146.4472063 2738.56276 1000.00000 1000.00000
1 1996 18.88 146.4472063 2764.92326 1.08333 1008.54234 1.37503 1008.25064
2 1996 18.99 146.4472063 2781.03245 1.09259 1013.32579 1.38638 1012.73860
3 1996 19.18 146.4472063 2808.85742 1.09777 1022.36661 1.39255 1021.47877
4 1996 20.70 146.4472063 3031.45717 1.10756 1102.28080 1.40457 1101.02559
5 1996 21.46 146.4472063 3142.75705 1.19414 1141.55688 1.51395 1139.93578
6 1996 20.57 146.4472063 3012.41903 1.23669 1092.97697 1.56745 1091.09233
7 1996 19.06 146.4472063 2791.28375 1.18406 1011.55979 1.50029 1009.49727
8 1996 19.66 146.4472063 2879.15208 1.09586 1042.30737 1.38809 1039.88769
9 1996 20.11 146.4472063 2945.05332 1.12917 1065.03570 1.42988 1062.25992
10 1996 19.85 146.4472063 2906.97705 1.15379 1050.11218 1.46064 1047.06543
11 1996 20.49 146.4472063 3000.70326 1.13762 1082.83208 1.43975 1079.38497
12 1996 19.92 153.5100777 3057.92075 1.17307 1102.30648 1.48419 1098.48252
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.66%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1102.31 1036.72
TOTAL RETURN 10.23% 3.67%
WITH DEATH BENEFIT CHARGE
ERV 1098.48 1033.12
TOTAL RETURN 9.85% 3.31%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 14.62 124.7403981 1823.70462 1000.00000 1000.00000
1 1994 15.94 124.7403981 1988.36195 1.08333 1089.20394 1.37503 1088.91224
2 1994 15.97 124.7403981 1992.10416 1.17997 1090.07392 1.49729 1089.46435
3 1994 15.28 124.7403981 1906.03328 1.18091 1041.79526 1.49805 1040.89489
4 1994 15.43 124.7403981 1924.74434 1.12861 1050.89370 1.43127 1049.68183
5 1994 15.50 124.7403981 1933.47617 1.13847 1054.52273 1.44335 1053.00049
6 1994 15.41 124.7403981 1922.24953 1.14240 1047.25729 1.44791 1045.43838
7 1994 15.70 124.7403981 1958.42425 1.13453 1065.83105 1.43751 1063.67492
8 1994 16.40 124.7403981 2045.74253 1.15465 1112.19753 1.46259 1109.63733
9 1994 16.76 124.7403981 2090.64907 1.20488 1135.40674 1.52579 1132.46944
10 1994 17.26 124.7403981 2153.01927 1.23002 1168.04923 1.55718 1164.69714
11 1994 16.74 124.7403981 2088.15426 1.26539 1131.59348 1.60150 1128.00627
12 1994 15.83 132.3322462 2094.81946 1.22589 1133.97953 1.55105 1130.05572
1 1995 16.15 132.3322462 2137.16578 1.22848 1155.67420 1.55386 1151.34568
2 1995 16.54 132.3322462 2188.77535 1.25198 1182.33014 1.58314 1177.56594
3 1995 17.08 132.3322462 2260.23477 1.28086 1219.65015 1.61919 1214.39207
4 1995 17.87 132.3322462 2364.77724 1.32129 1274.74125 1.66983 1268.89143
5 1995 18.31 132.3322462 2423.00343 1.38097 1304.74731 1.74477 1298.38965
6 1995 18.81 132.3322462 2489.16955 1.41348 1338.96320 1.78533 1332.06007
7 1995 19.61 132.3322462 2595.03535 1.45054 1394.45952 1.83163 1386.88172
8 1995 20.04 132.3322462 2651.93821 1.51066 1423.52599 1.90701 1415.38568
9 1995 20.50 132.3322462 2712.81105 1.54215 1454.65958 1.94620 1445.92837
10 1995 19.41 132.3322462 2568.56890 1.57588 1375.73839 1.98820 1367.05910
11 1995 20.27 132.3322462 2682.37463 1.49038 1435.20292 1.87975 1425.74972
12 1995 18.70 146.4472063 2738.56276 1.55480 1463.71154 1.96045 1453.65467
1 1996 18.88 146.4472063 2764.92326 1.58569 1476.21506 1.99882 1465.64824
2 1996 18.99 146.4472063 2781.03245 1.59923 1483.21666 2.01532 1472.17219
3 1996 19.18 146.4472063 2808.85742 1.60682 1496.44981 2.02429 1484.87738
4 1996 20.70 146.4472063 3031.45717 1.62115 1613.42114 2.04176 1600.51100
5 1996 21.46 146.4472063 3142.75705 1.74787 1670.90998 2.20076 1657.07296
6 1996 20.57 146.4472063 3012.41903 1.81015 1599.80301 2.27853 1586.07146
7 1996 19.06 146.4472063 2791.28375 1.73312 1480.63175 2.18090 1467.46042
8 1996 19.66 146.4472063 2879.15208 1.60402 1525.63733 2.01781 1511.63759
9 1996 20.11 146.4472063 2945.05332 1.65277 1558.90505 2.07855 1544.15909
10 1996 19.85 146.4472063 2906.97705 1.68881 1537.06132 2.12327 1522.07155
11 1996 20.49 146.4472063 3000.70326 1.66515 1584.95381 2.09290 1569.05300
12 1996 19.92 153.5100777 3057.92075 1.71703 1613.45872 2.15750 1596.81425
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 67.68%
GROSS ANNUAL RETURN = 18.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1613.46 1544.89
TOTAL RETURN 61.35% 54.49%
AVERAGE ANNUAL RETURN 17.29% 15.60%
WITH DEATH BENEFIT CHARGE
ERV 1596.81 1528.95
TOTAL RETURN 59.68% 52.89%
AVERAGE ANNUAL RETURN 16.88% 15.20%
<TABLE>
<CAPTION>
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1991 11.36 103.3802817 1174.40000 1000.00000 1000.00000
1 1992 12.80 103.3802817 1323.26761 1.08333 1125.67723 1.37503 1125.38553
2 1992 13.45 103.3802817 1390.46479 1.21948 1181.62104 1.54744 1180.98657
3 1992 13.45 103.3802817 1390.46479 1.28009 1180.34095 1.62390 1179.36268
4 1992 13.27 103.3802817 1371.85634 1.27870 1163.26587 1.62166 1161.95772
5 1992 13.18 103.3802817 1362.55211 1.26020 1154.11614 1.59773 1152.47934
6 1992 12.37 103.3802817 1278.81408 1.25029 1081.93762 1.58470 1080.06701
7 1992 12.53 103.3802817 1295.35493 1.17210 1094.75986 1.48513 1092.55203
8 1992 12.19 103.3802817 1260.20563 1.18599 1063.86770 1.50230 1061.40347
9 1992 12.07 103.3802817 1247.80000 1.15252 1052.24232 1.45947 1049.49540
10 1992 12.42 103.3802817 1283.98310 1.13993 1081.61480 1.44309 1078.48507
11 1992 13.68 103.3802817 1414.24225 1.17175 1190.17209 1.48295 1186.41365
12 1992 13.97 108.4569920 1515.14418 1.28935 1273.79793 1.63136 1269.42933
1 1993 14.67 108.4569920 1591.06407 1.37995 1336.24465 1.74551 1331.29159
2 1993 14.61 111.8629689 1634.31798 1.44760 1371.12356 1.83057 1365.65287
3 1993 14.96 111.8629689 1673.47001 1.48538 1402.48508 1.87782 1396.49090
4 1993 14.73 111.8629689 1647.74153 1.51936 1379.40345 1.92022 1373.10056
5 1993 15.07 111.8629689 1685.77494 1.49435 1409.74869 1.88806 1402.90661
6 1993 15.09 111.8629689 1688.01220 1.52723 1410.09239 1.92904 1402.83942
7 1993 14.95 111.8629689 1672.35139 1.52760 1395.48242 1.92895 1387.89539
8 1993 15.38 111.8629689 1720.45246 1.51177 1434.10827 1.90840 1425.90639
9 1993 15.75 111.8629689 1761.84176 1.55362 1467.05531 1.96067 1458.24906
10 1993 16.17 111.8629689 1808.82421 1.58931 1504.58747 2.00514 1495.13056
11 1993 16.08 111.8629689 1798.75654 1.62997 1494.58318 2.05585 1484.75302
12 1993 14.62 124.7403981 1823.70462 1.61913 1513.69335 2.04158 1503.30440
1 1994 15.94 124.7403981 1988.36195 1.63983 1648.72077 2.06709 1636.96657
2 1994 15.97 124.7403981 1992.10416 1.78611 1650.03765 2.25088 1637.79655
3 1994 15.28 124.7403981 1906.03328 1.78754 1576.95856 2.25202 1564.78187
4 1994 15.43 124.7403981 1924.74434 1.70837 1590.73080 2.15163 1577.99132
5 1994 15.50 124.7403981 1933.47617 1.72329 1596.22405 2.16979 1582.98027
6 1994 15.41 124.7403981 1922.24953 1.72924 1585.22641 2.17665 1571.61212
7 1994 15.70 124.7403981 1958.42425 1.71733 1613.34137 2.16102 1599.02719
8 1994 16.40 124.7403981 2045.74253 1.74779 1683.52600 2.19872 1668.12268
9 1994 16.76 124.7403981 2090.64907 1.82382 1718.65763 2.29372 1702.44628
10 1994 17.26 124.7403981 2153.01927 1.86188 1768.06836 2.34092 1750.89433
11 1994 16.74 124.7403981 2088.15426 1.91541 1712.88554 2.40754 1695.73679
12 1994 15.83 132.3322462 2094.81946 1.85563 1716.49728 2.33169 1698.81773
1 1995 16.15 132.3322462 2137.16578 1.85954 1749.33636 2.33593 1730.82303
2 1995 16.54 132.3322462 2188.77535 1.89511 1789.68528 2.37994 1770.24006
3 1995 17.08 132.3322462 2260.23477 1.93883 1846.17633 2.43414 1825.60094
4 1995 17.87 132.3322462 2364.77724 2.00002 1929.56736 2.51026 1907.53006
5 1995 18.31 132.3322462 2423.00343 2.09036 1974.98733 2.62292 1951.87487
6 1995 18.81 132.3322462 2489.16955 2.13957 2026.77969 2.68389 2002.49177
7 1995 19.61 132.3322462 2595.03535 2.19568 2110.78411 2.75349 2084.90539
8 1995 20.04 132.3322462 2651.93821 2.28668 2154.78183 2.86681 2127.75552
9 1995 20.50 132.3322462 2712.81105 2.33435 2201.90854 2.92573 2173.67048
10 1995 19.41 132.3322462 2568.56890 2.38540 2082.44605 2.98887 2055.10596
11 1995 20.27 132.3322462 2682.37463 2.25598 2172.45713 2.82584 2143.33582
12 1995 18.70 146.4472063 2738.56276 2.35350 2215.61044 2.94716 2185.28546
1 1996 18.88 146.4472063 2764.92326 2.40024 2234.53692 3.00484 2203.31545
2 1996 18.99 146.4472063 2781.03245 2.42075 2245.13519 3.02963 2213.12293
3 1996 19.18 146.4472063 2808.85742 2.43223 2265.16614 3.04312 2232.22270
4 1996 20.70 146.4472063 3031.45717 2.45393 2442.22485 3.06938 2406.05522
5 1996 21.46 146.4472063 3142.75705 2.64574 2529.24534 3.30841 2491.08507
6 1996 20.57 146.4472063 3012.41903 2.74002 2421.61118 3.42532 2384.34821
7 1996 19.06 146.4472063 2791.28375 2.62341 2241.22243 3.27856 2206.03971
8 1996 19.66 146.4472063 2879.15208 2.42799 2309.34709 3.03338 2272.45145
9 1996 20.11 146.4472063 2945.05332 2.50179 2359.70421 3.12470 2321.34115
10 1996 19.85 146.4472063 2906.97705 2.55635 2326.63950 3.19192 2288.13686
11 1996 20.49 146.4472063 3000.70326 2.52053 2399.13405 3.14626 2358.76428
12 1996 19.92 153.5100777 3057.92075 2.59906 2442.28174 3.24338 2400.49788
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 160.38%
GROSS ANNUAL RETURN = 21.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2442.28 2380.00
TOTAL RETURN 144.23% 138.00%
AVERAGE ANNUAL RETURN 19.55% 18.94%
WITH DEATH BENEFIT CHARGE
ERV 2400.50 2339.29
TOTAL RETURN 140.05% 133.93%
AVERAGE ANNUAL RETURN 19.14% 18.53%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 1990 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1990 10.50 100.0000000 1050.00000 1.08333 1048.91667 1.37503 1048.62497
8 1990 9.16 100.0000000 916.00000 1.13633 913.91859 1.44189 913.35855
9 1990 8.30 100.0000000 830.00000 0.99008 827.12393 1.25590 826.35065
10 1990 7.50 100.0000000 750.00000 0.89605 746.50509 1.13626 745.56614
11 1990 8.17 100.0000000 817.00000 0.80871 812.38417 1.02518 811.14487
12 1990 8.57 100.0000000 857.00000 0.88008 851.27809 1.11535 849.74285
1 1991 9.18 100.0000000 918.00000 0.92222 910.94860 1.16842 909.05787
2 1991 10.07 100.0000000 1007.00000 0.98686 998.27811 1.24998 995.94095
3 1991 10.53 100.0000000 1053.00000 1.08147 1042.79822 1.36945 1040.06632
4 1991 10.55 100.0000000 1055.00000 1.12970 1043.64915 1.43013 1040.61162
5 1991 11.23 100.0000000 1123.00000 1.13062 1109.78691 1.43088 1106.25335
6 1991 10.76 100.0000000 1076.00000 1.20227 1062.13763 1.52114 1058.43310
7 1991 11.10 100.0000000 1110.00000 1.15065 1094.54895 1.45538 1090.42263
8 1991 11.37 100.0000000 1137.00000 1.18576 1119.98736 1.49937 1115.44705
9 1991 11.43 100.0000000 1143.00000 1.21332 1124.68426 1.53378 1119.79954
10 1991 11.58 100.0000000 1158.00000 1.21841 1138.22549 1.53976 1132.95531
11 1991 11.19 100.0000000 1119.00000 1.23308 1098.65839 1.55785 1093.24093
12 1991 11.36 103.3802817 1174.40000 1.19021 1151.86110 1.50324 1145.86240
1 1992 12.80 103.3802817 1323.26761 1.24785 1296.62381 1.57560 1289.53696
2 1992 13.45 103.3802817 1390.46479 1.40468 1361.06331 1.77316 1353.24810
3 1992 13.45 103.3802817 1390.46479 1.47449 1359.58883 1.86076 1351.38734
4 1992 13.27 103.3802817 1371.85634 1.47289 1339.92070 1.85820 1331.44366
5 1992 13.18 103.3802817 1362.55211 1.45158 1329.38149 1.83078 1320.58274
6 1992 12.37 103.3802817 1278.81408 1.44016 1246.24185 1.81585 1237.60817
7 1992 12.53 103.3802817 1295.35493 1.35010 1261.01130 1.70175 1251.91428
8 1992 12.19 103.3802817 1260.20563 1.36610 1225.42782 1.72142 1216.22232
9 1992 12.07 103.3802817 1247.80000 1.32755 1212.03699 1.67235 1202.57732
10 1992 12.42 103.3802817 1283.98310 1.31304 1245.87001 1.65358 1235.79549
11 1992 13.68 103.3802817 1414.24225 1.34969 1370.91293 1.69926 1359.46678
12 1992 13.97 108.4569920 1515.14418 1.48516 1467.23828 1.86931 1454.59133
1 1993 14.67 108.4569920 1591.06407 1.58951 1539.16823 2.00011 1525.47697
2 1993 14.61 111.8629689 1634.31798 1.66743 1579.34389 2.09758 1564.85027
3 1993 14.96 111.8629689 1673.47001 1.71096 1615.46800 2.15172 1600.18641
4 1993 14.73 111.8629689 1647.74153 1.75009 1588.88117 2.20031 1573.38430
5 1993 15.07 111.8629689 1685.77494 1.72129 1623.83467 2.16346 1607.53793
6 1993 15.09 111.8629689 1688.01220 1.75915 1624.23057 2.21042 1607.46094
7 1993 14.95 111.8629689 1672.35139 1.75958 1607.40192 2.21031 1590.33714
8 1993 15.38 111.8629689 1720.45246 1.74135 1651.89353 2.18677 1633.89251
9 1993 15.75 111.8629689 1761.84176 1.78955 1689.84394 2.24666 1670.95276
10 1993 16.17 111.8629689 1808.82421 1.83066 1733.07578 2.29762 1713.21389
11 1993 16.08 111.8629689 1798.75654 1.87750 1721.55222 2.35573 1701.32265
12 1993 14.62 124.7403981 1823.70462 1.86501 1743.56449 2.33938 1722.57998
1 1994 15.94 124.7403981 1988.36195 1.88886 1899.09732 2.36860 1875.73844
2 1994 15.97 124.7403981 1992.10416 2.05736 1900.61417 2.57920 1876.68948
3 1994 15.28 124.7403981 1906.03328 2.05900 1816.43722 2.58051 1793.02470
4 1994 15.43 124.7403981 1924.74434 1.96781 1832.30093 2.46547 1808.16092
5 1994 15.50 124.7403981 1933.47617 1.98499 1838.62838 2.48628 1813.87757
6 1994 15.41 124.7403981 1922.24953 1.99185 1825.96063 2.49414 1800.85123
7 1994 15.70 124.7403981 1958.42425 1.97812 1858.34516 2.47623 1832.26513
8 1994 16.40 124.7403981 2045.74253 2.01321 1939.18811 2.51943 1911.43906
9 1994 16.76 124.7403981 2090.64907 2.10079 1979.65487 2.62829 1950.76918
10 1994 17.26 124.7403981 2153.01927 2.14463 2036.56916 2.68237 2006.28398
11 1994 16.74 124.7403981 2088.15426 2.20628 1973.00621 2.75871 1943.08103
12 1994 15.83 132.3322462 2094.81946 2.13742 1977.16644 2.67180 1946.61136
1 1995 16.15 132.3322462 2137.16578 2.14193 2014.99250 2.67666 1983.28503
2 1995 16.54 132.3322462 2188.77535 2.18291 2061.46885 2.72708 2028.45152
3 1995 17.08 132.3322462 2260.23477 2.23326 2126.53869 2.78919 2091.88747
4 1995 17.87 132.3322462 2364.77724 2.30375 2222.59358 2.87641 2185.76697
5 1995 18.31 132.3322462 2423.00343 2.40781 2274.91107 3.00550 2236.58002
6 1995 18.81 132.3322462 2489.16955 2.46449 2334.56868 3.07537 2294.58002
7 1995 19.61 132.3322462 2595.03535 2.52912 2431.33010 3.15512 2389.01469
8 1995 20.04 132.3322462 2651.93821 2.63394 2482.00936 3.28497 2438.11504
9 1995 20.50 132.3322462 2712.81105 2.68884 2536.29279 3.35249 2490.72727
10 1995 19.41 132.3322462 2568.56890 2.74765 2398.68860 3.42483 2354.86864
11 1995 20.27 132.3322462 2682.37463 2.59858 2502.36885 3.23802 2455.96792
12 1995 18.70 146.4472063 2738.56276 2.71090 2552.07547 3.37704 2504.03644
1 1996 18.88 146.4472063 2764.92326 2.76475 2573.87615 3.44313 2524.69633
2 1996 18.99 146.4472063 2781.03245 2.78837 2586.08389 3.47154 2535.93435
3 1996 19.18 146.4472063 2808.85742 2.80159 2609.15675 3.48699 2557.82005
4 1996 20.70 146.4472063 3031.45717 2.82659 2813.10380 3.51709 2757.00820
5 1996 21.46 146.4472063 3142.75705 3.04753 2913.33931 3.79098 2854.44072
6 1996 20.57 146.4472063 3012.41903 3.15612 2789.35971 3.92495 2732.13495
7 1996 19.06 146.4472063 2791.28375 3.02181 2581.57693 3.75678 2527.81795
8 1996 19.66 146.4472063 2879.15208 2.79671 2660.04707 3.47583 2603.91666
9 1996 20.11 146.4472063 2945.05332 2.88172 2718.05148 3.58047 2659.93754
10 1996 19.85 146.4472063 2906.97705 2.94456 2679.96553 3.65750 2621.88999
11 1996 20.49 146.4472063 3000.70326 2.90330 2763.46918 3.60519 2702.81929
12 1996 19.92 153.5100777 3057.92075 2.99376 2813.16933 3.71647 2750.64026
</TABLE>
SURRENDER CHARGE = 1.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 205.79%
GROSS ANNUAL RETURN = 18.97%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2813.17 2789.26
TOTAL RETURN 181.32% 178.93%
AVERAGE ANNUAL RETURN 17.44% 17.28%
WITH DEATH BENEFIT CHARGE
ERV 2750.64 2727.26
TOTAL RETURN 175.06% 172.73%
AVERAGE ANNUAL RETURN 17.03% 16.87%
<PAGE>
Pioneer Real Estate
12/1996
Assume ($10000 @ $10.00 on 10/25/1993)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/93 0.0700000000 11.55 0.606 100.606061
3/94 0.1200000000 12.56 0.961 101.567265
6/94 0.1100000000 12.43 0.899 102.466090
9/94 0.1800000000 11.70 1.576 104.042492
12/94 0.1950000000 10.96 1.851 105.893613
3/95 0.1600000000 10.85 1.562 107.455178
6/95 0.1718000000 11.37 1.624 109.078819
9/95 0.1800000000 12.07 1.627 110.705512
12/95 0.1787000000 11.72 1.688 112.393488
3/96 0.1500000000 12.03 1.401 113.794903
6/96 0.1600000000 12.30 1.480 115.275162
9/96 0.1400000000 13.37 1.207 116.482231
12/96 0.2893000000 14.67 2.297 118.779321
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 12.02 112.3934876 1350.96972 1000.00000 1000.00000
1 1996 12.09 112.3934876 1358.83726 1.08333 1004.74029 1.37503 1004.44859
2 1996 12.20 112.3934876 1371.20055 1.08847 1012.79338 1.38115 1012.20635
3 1996 12.09 113.7949026 1375.78037 1.09719 1015.07893 1.39182 1014.19531
4 1996 12.14 113.7949026 1381.47012 1.09967 1018.17727 1.39455 1016.99511
5 1996 12.51 113.7949026 1423.57423 1.10303 1048.10601 1.39840 1046.59244
6 1996 12.33 115.2751615 1421.34274 1.13545 1045.32763 1.43910 1043.51278
7 1996 12.60 115.2751615 1452.46703 1.13244 1067.08557 1.43486 1064.92856
8 1996 13.30 115.2751615 1533.15965 1.15601 1125.21210 1.46431 1122.62695
9 1996 13.54 116.4822313 1577.16941 1.21898 1156.29264 1.54365 1153.30861
10 1996 13.80 116.4822313 1607.45479 1.25265 1177.24354 1.58584 1173.86902
11 1996 14.30 116.4822313 1665.69591 1.27535 1218.62194 1.61411 1214.78640
12 1996 15.52 118.7793212 1843.45507 1.32017 1347.35024 1.67037 1342.75518
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 36.45%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1347.35 1267.18
TOTAL RETURN 34.74% 26.72%
WITH DEATH BENEFIT CHARGE
ERV 1342.76 1262.86
TOTAL RETURN 34.28% 26.29%
<TABLE>
<CAPTION>
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1995 12.02 112.3934876 1350.96972 1000.00000 1000.00000
1 1996 12.09 112.3934876 1358.83726 1.08333 1004.74029 1.37503 1004.44859
2 1996 12.20 112.3934876 1371.20055 1.08847 1012.79338 1.38115 1012.20635
3 1996 12.09 113.7949026 1375.78037 1.09719 1015.07893 1.39182 1014.19531
4 1996 12.14 113.7949026 1381.47012 1.09967 1018.17727 1.39455 1016.99511
5 1996 12.51 113.7949026 1423.57423 1.10303 1048.10601 1.39840 1046.59244
6 1996 12.33 115.2751615 1421.34274 1.13545 1045.32763 1.43910 1043.51278
7 1996 12.60 115.2751615 1452.46703 1.13244 1067.08557 1.43486 1064.92856
8 1996 13.30 115.2751615 1533.15965 1.15601 1125.21210 1.46431 1122.62695
9 1996 13.54 116.4822313 1577.16941 1.21898 1156.29264 1.54365 1153.30861
10 1996 13.80 116.4822313 1607.45479 1.25265 1177.24354 1.58584 1173.86902
11 1996 14.30 116.4822313 1665.69591 1.27535 1218.62194 1.61411 1214.78640
12 1996 15.52 118.7793212 1843.45507 1.32017 1347.35024 1.67037 1342.75518
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 36.45%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1347.35 1267.18
TOTAL RETURN 34.74% 26.72%
WITH DEATH BENEFIT CHARGE
ERV 1342.76 1262.86
TOTAL RETURN 34.28% 26.29%
<TABLE>
<CAPTION>
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1993 11.95 100.6060606 1202.24242 1000.00000 1000.00000
1 1994 11.99 100.6060606 1206.26667 1.08333 1002.26395 1.37503 1001.97225
2 1994 12.66 100.6060606 1273.67273 1.08579 1057.18457 1.37775 1056.58461
3 1994 12.27 101.5672650 1246.23034 1.14528 1033.26133 1.45284 1032.36674
4 1994 12.35 101.5672650 1254.35572 1.11937 1038.87879 1.41954 1037.67820
5 1994 12.53 101.5672650 1272.63783 1.12545 1052.89489 1.42684 1051.37541
6 1994 12.02 102.4660904 1231.64241 1.14064 1017.83740 1.44568 1016.06183
7 1994 11.74 102.4660904 1202.95190 1.10266 993.02472 1.39712 990.99604
8 1994 12.01 102.4660904 1230.61775 1.07578 1014.78682 1.36265 1012.42461
9 1994 11.46 104.0424918 1192.32696 1.09935 982.11228 1.39212 979.53081
10 1994 10.95 104.0424918 1139.26528 1.06395 937.34176 1.34689 934.59223
11 1994 10.38 104.0424918 1079.96106 1.01545 887.53317 1.28510 884.65713
12 1994 11.38 105.8936127 1205.06931 0.96149 989.38809 1.21643 985.92393
1 1995 10.93 105.8936127 1157.41719 1.07184 949.19282 1.35568 945.58181
2 1995 11.05 105.8936127 1170.12442 1.02829 958.58567 1.30021 954.66310
3 1995 10.84 107.4551775 1164.81412 1.03847 953.19692 1.31269 949.01793
4 1995 10.64 107.4551775 1143.32309 1.03263 934.57763 1.30493 930.20344
5 1995 11.25 107.4551775 1208.87075 1.01246 987.14528 1.27906 982.25371
6 1995 11.47 109.0788186 1251.13405 1.06941 1020.58744 1.35063 1015.24363
7 1995 11.84 109.0788186 1291.49321 1.10564 1052.40398 1.39599 1046.59743
8 1995 11.91 109.0788186 1299.12873 1.14010 1057.48586 1.43911 1051.34598
9 1995 12.02 110.7055119 1330.68025 1.14561 1082.02307 1.44564 1075.43405
10 1995 11.53 110.7055119 1276.43455 1.17219 1036.74178 1.47876 1030.11480
11 1995 11.56 110.7055119 1279.75572 1.12314 1038.31615 1.41644 1031.37862
12 1995 12.02 112.3934876 1350.96972 1.12484 1094.97003 1.41818 1087.35311
1 1996 12.09 112.3934876 1358.83726 1.18622 1100.16051 1.49515 1092.19031
2 1996 12.20 112.3934876 1371.20055 1.19184 1108.97840 1.50180 1100.62572
3 1996 12.09 113.7949026 1375.78037 1.20139 1111.48101 1.51340 1102.78843
4 1996 12.14 113.7949026 1381.47012 1.20410 1114.87360 1.51637 1105.83280
5 1996 12.51 113.7949026 1423.57423 1.20778 1147.64467 1.52056 1138.01555
6 1996 12.33 115.2751615 1421.34274 1.24328 1144.60242 1.56481 1134.66687
7 1996 12.60 115.2751615 1452.46703 1.23999 1168.42673 1.56020 1157.95339
8 1996 13.30 115.2751615 1533.15965 1.26580 1232.07353 1.59222 1220.69191
9 1996 13.54 116.4822313 1577.16941 1.33475 1266.10578 1.67849 1254.05371
10 1996 13.80 116.4822313 1607.45479 1.37161 1289.04639 1.72437 1276.41014
11 1996 14.30 116.4822313 1665.69591 1.39647 1334.35451 1.75511 1320.90177
12 1996 15.52 118.7793212 1843.45507 1.44555 1475.30814 1.81628 1460.04903
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 53.33%
GROSS ANNUAL RETURN = 15.31%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1475.31 1412.61
TOTAL RETURN 47.53% 41.26%
AVERAGE ANNUAL RETURN 13.84% 12.20%
WITH DEATH BENEFIT CHARGE
ERV 1460.05 1398.00
TOTAL RETURN 46.00% 39.80%
AVERAGE ANNUAL RETURN 13.45% 11.82%
<TABLE>
<CAPTION>
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10 1993 12.34 100.0000000 1234.00000 1000.00000 1000.00000
11 1993 11.81 100.0000000 1181.00000 1.08333 955.96691 1.37503 955.67521
12 1993 11.95 100.6060606 1202.24242 1.03563 972.12608 1.31409 971.55067
1 1994 11.99 100.6060606 1206.26667 1.05314 974.32692 1.33591 973.46681
2 1994 12.66 100.6060606 1273.67273 1.05552 1027.71669 1.33855 1026.52549
3 1994 12.27 101.5672650 1246.23034 1.11336 1004.46028 1.41151 1002.99660
4 1994 12.35 101.5672650 1254.35572 1.08817 1009.92116 1.37915 1008.15695
5 1994 12.53 101.5672650 1272.63783 1.09408 1023.54658 1.38625 1021.46449
6 1994 12.02 102.4660904 1231.64241 1.10884 989.46628 1.40455 987.15555
7 1994 11.74 102.4660904 1202.95190 1.07192 965.34522 1.35737 962.80288
8 1994 12.01 102.4660904 1230.61775 1.04579 986.50073 1.32389 983.62182
9 1994 11.46 104.0424918 1192.32696 1.06871 954.73696 1.35251 951.66382
10 1994 10.95 104.0424918 1139.26528 1.03430 911.21436 1.30857 908.00371
11 1994 10.38 104.0424918 1079.96106 0.98715 862.79414 1.24854 859.48923
12 1994 11.38 105.8936127 1205.06931 0.93469 961.80996 1.18183 957.87506
1 1995 10.93 105.8936127 1157.41719 1.04196 922.73509 1.31711 918.68064
2 1995 11.05 105.8936127 1170.12442 0.99963 931.86613 1.26322 927.50358
3 1995 10.84 107.4551775 1164.81412 1.00952 926.62758 1.27535 922.01901
4 1995 10.64 107.4551775 1143.32309 1.00385 908.52729 1.26781 903.73978
5 1995 11.25 107.4551775 1208.87075 0.98424 959.62967 1.24267 954.30926
6 1995 11.47 109.0788186 1251.13405 1.03960 992.13966 1.31221 986.36063
7 1995 11.84 109.0788186 1291.49321 1.07482 1023.06935 1.35628 1016.82244
8 1995 11.91 109.0788186 1299.12873 1.10833 1028.00958 1.39816 1021.43589
9 1995 12.02 110.7055119 1330.68025 1.11368 1051.86284 1.40451 1044.83867
10 1995 11.53 110.7055119 1276.43455 1.13952 1007.84372 1.43669 1000.80873
11 1995 11.56 110.7055119 1279.75572 1.09183 1009.37421 1.37615 1002.03659
12 1995 12.02 112.3934876 1350.96972 1.09349 1064.44892 1.37783 1056.41865
1 1996 12.09 112.3934876 1358.83726 1.15315 1069.49472 1.45261 1061.11823
2 1996 12.20 112.3934876 1371.20055 1.15862 1078.06682 1.45907 1069.31366
3 1996 12.09 113.7949026 1375.78037 1.16791 1080.49967 1.47034 1071.41484
4 1996 12.14 113.7949026 1381.47012 1.17054 1083.79770 1.47323 1074.37260
5 1996 12.51 113.7949026 1423.57423 1.17411 1115.65531 1.47730 1105.63978
6 1996 12.33 115.2751615 1421.34274 1.20863 1112.69786 1.52029 1102.38637
7 1996 12.60 115.2751615 1452.46703 1.20542 1135.85809 1.51582 1125.01039
8 1996 13.30 115.2751615 1533.15965 1.23051 1197.73080 1.54693 1185.96405
9 1996 13.54 116.4822313 1577.16941 1.29754 1230.81445 1.63074 1218.37672
10 1996 13.80 116.4822313 1607.45479 1.33338 1253.11561 1.67531 1240.09713
11 1996 14.30 116.4822313 1665.69591 1.35754 1297.16081 1.70517 1283.32301
12 1996 15.52 118.7793212 1843.45507 1.40526 1434.18551 1.76461 1418.51162
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 49.39%
GROSS ANNUAL RETURN = 13.44%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1434.19 1385.42
TOTAL RETURN 43.42% 38.54%
AVERAGE ANNUAL RETURN 11.99% 10.78%
WITH DEATH BENEFIT CHARGE
ERV 1418.51 1370.28
TOTAL RETURN 41.85% 37.03%
AVERAGE ANNUAL RETURN 11.61% 10.40%
EXHIBIT (14): POWERS OF ATTORNEY
MEMORANDUM
- --------------------------------------------------------------------------------
TO: Dan Varona
General Counsel, Secretary,
and Chief Administrative Officer
COMPANION LIFE INSURANCE COMPANY
FROM: Tom McCusker
Larry Harr
DATE: September 20, 1995
RE: POWER OF ATTORNEY DESIGNATION
Between July 13 and August 1, 1995, Messrs. Skutt, Weekly and Johnson, together
with members of Companion's Board of Directors each executed limited Power of
Attorney in favor of Tom McCusker or Larry Harr or "such person(s) as they may
designate in writing directed to the Corporate Secretary...." The Power is
limited to signing registration statements and amendments thereto and similar
documents for variable products.
We hereby designate the following person to have and exercise on our behalf all
power granted us under these limited Powers of Attorney.
Kenneth R. Reitz
A copy of each Power of Attorney and this memo will accompany each SEC
registration filing signed by our designee.
/S/ THOMAS J. MCCUSKER /S/ LAWRENCE F. HARR
Thomas J. McCusker Lawrence F. Harr
Senior Executive Vice President Executive Vice President
and General Counsel and Executive Counsel
United of Omaha Insurance Company United of Omaha Insurance Company
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that THOMAS J. SKUTT, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ THOMAS J. SKUTT
THOMAS J. SKUTT
DIRECTOR
JULY 17, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that JOHN W. WEEKLY, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ JOHN W. WEEKLY
JOHN W. WEEKLY
DIRECTOR
JULY 20, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that SAMUEL L. FOGGIE, whose signature
appears below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr
and such person(s) as they may designate in writing directed to the Corporate
Secretary of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ SAMUEL L. FOGGIE
SAMUEL L. FOGGIE
DIRECTOR
JULY 17, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that ERNEST B. JOHNSTON whose signature
appears below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr
and such person(s) as they may designate in writing directed to the Corporate
Secretary of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ ERNEST B. JOHNSTON
ERNEST B. JOHNSTON
DIRECTOR, VICE-CHAIRMAN OF THE
BOARD & CHIEF EXECUTIVE OFFICER
JULY 21, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that FRED C. BODDY, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ FRED C. BODDY
FRED C. BODDY
VICE PRESIDENT, TREASURER &
CHIEF FINANCIAL OFFICER
JULY 26, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that WILLIAM G. CAMPBELL, whose signature
appears below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr
and such person(s) as they may designate in writing directed to the Corporate
Secretary of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ WILLIAM G. CAMPBELL
WILLIAM G. CAMPBELL
DIRECTOR
JULY 18, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that M. JANE HUERTER, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ M. JANE HUERTER
M. JANE HUERTER
DIRECTOR
JULY 18, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that CHARLES T. LOCKE, whose signature
appears below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr
and such person(s) as they may designate in writing directed to the Corporate
Secretary of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ CHARLES T. LOCKE
CHARLES T. LOCKE
DIRECTOR
JULY 17, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that JOHN L. MAGINN, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ JOHN L. MAGINN
JOHN L. MAGINN
DIRECTOR
JULY 17, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that OSCAR S. STRAUS, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ OSCAR S. STRAUS
OSCAR S. STRAUS
DIRECTOR
AUGUST 1, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that JOHN A. STURGEON, whose signature
appears below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr
and such person(s) as they may designate in writing directed to the Corporate
Secretary of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ JOHN A. STURGEON
JOHN A. STURGEON
DIRECTOR
JULY 19, 1995
Date
<PAGE>
POWER OF ATTORNEY
WITH RESPECT TO
COMPANION LIFE INSURANCE COMPANY
VARIABLE ANNUITY AND VARIABLE LIFE INSURANCE PRODUCTS
Know all persons by these presents that JOHN J. GRIBBON, whose signature appears
below, constitutes and appoints Thomas J. McCusker and Lawrence F. Harr and such
person(s) as they may designate in writing directed to the Corporate Secretary
of Companion Life Insurance Company, and each of them, as his/her
attorney-in-fact, each with the power of substitution, for him/her in any and
all capacities, to sign any registration statements and amendments thereto and
similar documents for Companion Life Insurance Company variable annuity and
variable life insurance products, and to file the same, with exhibits thereto
and other documents in connection therewith, with the Securities and Exchange
Commission and necessary regulatory authorities of any State, hereby ratifying
and confirming all that each of said attorneys-in-fact may do or cause to be
done by virtue hereof.
/S/ JOHN J. GRIBBON
JOHN J. GRIBBON
ASSISTANT VICE PRESIDENT,
CHIEF ACCOUNTING OFFICER
JULY 13, 1995
Date
