<PAGE>
Registration No. ______________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
INITIAL FILING TO
FORM S-6
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
A. Exact name of Trust: C.M. Life Variable Life Separate Account I
B. Name of Depositor: C.M. Life Insurance Company
C. Complete address of 140 Garden Street
Depositor's Hartford, CT 06154
principal executive
offices:
D. Name and address of Ann Lomeli
Agent Corporate Secretary
For Service of Process: 1295 State Street
Springfield, MA 01111
E. Title of Securities Survivorship Flexible Premium Adjustable Variable
being registered: Life Insurance Policy
F. Approximate date of as soon as practicable after the effective date
proposed Public of this Registration Statement.
offering:
Pursuant to Rule 24-F-2 of the Investment Company Act of 1940, Registrant
registers an indefinite number or amount of its variable life insurance
contracts under the Securities Act of 1933 pursuant to Rule 24F-2 under the
Investment Company Act of 1940. The Rule 24F-2 notice for Registrant's fiscal
year ending December 31, 1998 was filed on February 20, 1999.
Registrant hereby amends this Registration Statement on such date or dates as
may be necessary to delay its effective date until Registrant shall file a
further amendment which specifically states that this Registration Statement
shall become effective in accordance with Section 8(a) of the Securities Act of
1933 or until this Registration Statement shall become effective on such date as
the Commission, acting pursuant to said section, may determine.
1
<PAGE>
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
Item No. Of
Form N-8B-2 Caption
- ----------- -------
1 Cover Page; The Separate Account.
2 Cover Page.
3 Cover Page.
4 Sales and Other Agreements.
5 The Separate Account.
6 Not Applicable.
7 Not Applicable.
8 Appendix F. Financial Statement.
9 Legal Proceedings.
10 Detailed Description of Policy Features; Investment Options;
Other Policy Information.
11 Investment Options.
12 Investment Options; Sales and Other Agreements.
13 Introduction; Detailed Description of Policy Features.
14 Detailed description of Policy Features.
15 Premiums; Exhibit 99(11).
16 Introduction; The Separate Account.
17 Detailed description of Policy Features; Exhibit 99(11).
18 The Separate Account.
19 Other Information.
20 Not Applicable.
21 Policy Loan Privilege.
22 Not Applicable.
23 Bonding Arrangement.
24 Detailed Description of Policy Features; Other Information;
Investment Options.
25 Other Information.
26 Other Information; The Investment Options.
27 Other Information.
28 Appendix E: Directors and Executive Officers.
29 Other Information.
30 Other Information.
2
<PAGE>
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
Item No. of
Form N-8B-2 Caption
- ----------- -------
31 Not Applicable.
32 Not Applicable.
33 Not Applicable.
34 Not Applicable.
35 Sales and Other Agreements.
36 Not Applicable.
37 Not Applicable.
38 Sales and Other Agreements.
39 Sales and Other Agreements.
40 Sales and Other Agreements.
41 Sales and Other Agreements.
42 Not Applicable.
43 Sales and Other Agreements.
44 The Separate Account.
45 Not Applicable.
46 Account Value and Net Surrender Value; The Separate Account.
47 The Separate Account.
48 Not Applicable.
49 Not Applicable.
50 Not Applicable.
51 Detailed Description of Policy Features; Other Policy Information.
52 Investment Options.
53 Federal Income Tax Considerations.
54 Not Applicable.
55 Not Applicable.
56 Not Applicable.
57 Not Applicable.
58 Not Applicable.
59 Appendix F. (to be filed)
3
<PAGE>
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy*
Issued by C.M. Life Insurance Company
This prospectus describes a survivorship life insurance policy (the "policy")
offered by C.M. Life Insurance Company ("C.M. Life"). While the policy is in
force, it provides lifetime insurance protection on the two Insureds named in
the policy. It pays a death benefit at the death of the surviving Insured (the
"second death").
In this prospectus, "you" and "your" refer to the Owner of the policy. "We,"
"us," and "our" refer to C.M. Life. "MassMutual" refers to Massachusetts Mutual
Life Insurance Company. C.M. Life is a wholly owned subsidiary of MassMutual.
The policy provides premium-payment and death-benefit flexibility. It permits
you to vary the frequency and amount of premium payments and to increase or
decrease the death benefit. This flexibility allows you to meet changing
insurance needs under a single insurance policy.
You may allocate net premiums and account value among the divisions of the
Separate Account offered under this policy and a Guaranteed Principal Account
(the "GPA"). Each division invests in shares of a designated investment fund.
Currently, the funds shown at right are available under this policy.
You bear the investment risk of any account value allocated to the investment
funds. The death benefit may vary, and the net surrender value will vary,
depending on the investment performance of the funds.
This Policy is not a deposit or obligation of, or guaranteed or endorsed by, any
financial institution. It is not insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other federal agency. It is also
subject to investment risks, including loss of the principal amount invested.
We service the policy at our Administrative Office located at 1295 State Street,
Springfield, Massachusetts 01111-0001. Our telephone number is (413) 788-8411.
Our Home Office is located in Hartford, Connecticut.
This prospectus is not an offer to sell the policy in any jurisdiction where it
is illegal to offer the policy or to anyone to whom it is illegal to offer the
policy.
This policy provides insurance protection. It is not a way to invest in mutual
funds. Replacing an existing life insurance policy with this policy may not be
to your advantage.
Please read this prospectus and keep it for further reference.
MML Series Investment Fund
- --------------------------
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
MML Equity Index Fund
MML Small Cap Value Equity Fund
MML Growth Equity Fund
MML Small Cap Growth Equity Fund
Oppenheimer Variable Account Funds
- ----------------------------------
Oppenheimer Aggressive Growth Fund/VA
Oppenheimer Global Securities Fund/VA
Oppenheimer Capital Appreciation Fund/VA
Oppenheimer Strategic Bond Fund/VA
Oppenheimer Main Street Growth & Income Fund/VA
Oppenheimer High Income Fund/VA
Oppenheimer Bond Fund/VA
Variable Insurance Products Fund II
- -----------------------------------
Fidelity's VIP II Contrafund(R) Portfolio
T. Rowe Price Equity Series, Inc.
- ---------------------------------
T. Rowe Price Mid-Cap Growth Portfolio
American Century Variable Portfolios, Inc.
- ------------------------------------------
American Century's VP Income & Growth Fund
BT Insurance Funds Trust
- ------------------------
Bankers Trust's Small Cap Index Fund
Goldman Sachs Variable Insurance Trust
- --------------------------------------
Goldman Sachs Capital Growth Fund
Janus Aspen Series
- ------------------
Janus Aspen Capital Appreciation Portfolio
Janus Aspen Worldwide Growth Portfolio
Templeton Variable Product Series Fund
- --------------------------------------
Templeton International Fund
Neither the United States Securities and Exchange Commission nor any state
securities commission has approved this prospectus or determined that it is
accurate or complete. Any representation to the contrary is a criminal offense.
This prospectus is valid only when accompanied by the prospectuses for the
investment funds. The Securities and Exchange Commission maintains a Web site
(http://www.sec.gov) that contains material incorporated by reference and other
information regarding registrants that is filed with the Commission.
*Title may vary in some jurisdictions.
EFFECTIVE FEBRUARY, 2000
<PAGE>
Table of Contents
I. INTRODUCTION ............................................................3
II. DETAILED DESCRIPTION OF POLICY FEATURES
Purchasing the Policy ..............................................6
Death Benefit ......................................................6
Premiums ...........................................................8
Transfers ..........................................................9
Policy Termination and Reinstatement ..............................10
Charges and Deductions ............................................11
Deductions from Premiums ..........................................11
Monthly Charges Against the Account Value .........................11
Daily Charges Against the Separate Account ........................12
Surrender Charges .................................................12
Other Charges .....................................................12
Special Circumstances .............................................13
Account Value and Net Surrender Value .............................13
Policy Loan Privilege .............................................14
III. INVESTMENT OPTIONS
The Guaranteed Principal Account ..................................16
The Separate Account ............................................16
The Funds .........................................................17
Fund Profiles .....................................................20
The Investment Advisers ..........................................22
IV. OTHER POLICY INFORMATION
When We Pay Proceeds ..............................................24
Payment Options ...................................................24
Beneficiary .......................................................25
Assignment ........................................................25
Limits on Our Right to Challenge the Policy .......................25
Error of Age or Gender ............................................26
Suicide ...........................................................26
Additional Benefits You Can Get by Rider ..........................26
Sales and Other Agreements ........................................27
V. OTHER INFORMATION
C.M. Life and MassMutual ..........................................29
Annual Reports ....................................................29
Federal Income Tax Considerations .................................29
Your Voting Rights ................................................32
Reservation of Rights .............................................32
Service Agreement .................................................32
Bonding Arrangement ...............................................32
Legal Proceedings .................................................32
Experts ...........................................................32
Appendix A
Definition of Terms ...............................................33
Appendix B
Examples of Death Benefit Option Changes ..........................35
Appendix C
Rates of Return ...................................................37
Appendix D
Illustration of Death Benefits, Net Surrender Values, and
Accumulated Premiums ...........................................41
Appendix E
Directors of C.M. Life ............................................54
Principal Officers ................................................55
Appendix F
Financial Statements ............................................FF-1
2 Table of Contents
<PAGE>
I. Introduction
Please refer to Appendix A, Glossary, for definitions of the terms contained in
this prospectus.
You should consult your policy for more information about its terms and
conditions, and for any state-specific variations that may apply to your policy.
These variations will depend on the "contract state" of your policy; it is
usually the state or other jurisdiction in which you live.
The policy is a life insurance contract providing a death benefit, an account
value, surrender rights, policy loan privileges, and other features
traditionally associated with life insurance. The policy is a "survivorship"
policy because it provides life insurance on two insured lives and pays a death
benefit at the time of the second death.
There is no fixed schedule of premium payments. You may establish a schedule of
premium payments ("planned premium payments"); but if a planned premium payment
is not made the policy will not necessarily terminate. If planned premium
payments are made, they do not guarantee that the policy will remain in force.
The policy allows you to vary premium payments with your income flows or other
financial decisions.
You may increase or decrease the death benefit and change the Death Benefit
Option under the policy. Further, the death benefit may vary, and the net
surrender value will vary, with the investment experience of the investment
funds in which an Owner has account value. The GPA interest rate is declared and
guaranteed each calendar year. This guaranteed calendar-year rate will not be
less than 3%; it may be greater than 3%. We may credit interest periodically at
rates that exceed the guaranteed rate.
The following diagram summarizes how the policy works.
<TABLE>
<S> <C> <C>
HOW THE POLICY WORKS
Premium Payment
We deduct a premium expense
charge from each premium
payment (graphic arrow to "Net
Premium")
Net Premium
We allocate the net premium and
account value among the
divisions of the Separate Account
and the GPA based on the
percentages you have chosen
(graphic arrow to "Account
Investment Earnings Value") Account Value Charges
Each day we credit or debit the --------------------------------------- Each month we deduct charges
investment earnings or losses of the for administrative, insurance, and
divisions of the Separate Account less Account Value rider expenses.
fund investment management fees
and Separate Account fees. Owner Access to
(graphic arrow to "Account Value") You determine how the account Account Value
value is allocated among the You may access account values
available investment options. through loans and withdrawals
We also credit interest on values (graphic arrows to "Account after the first Policy Year.
in the GPA. Value Charges", "Owner Access
to Account Value", "Death
Benefit", "Policy Surrender") Policy Surrender
Death Benefit --------------------------------------- During the first 14 years of coverage, if
You have a choice of three Death you surrender all of your coverage or
Benefit Options. You can change the decrease your policy Face Amount, we
Option at a later date. deduct a surrender charge from any
amount we pay you.
</TABLE>
Introduction 3
<PAGE>
All expense charges and deductions are described in Charges and Deductions in
Part II. A summary of the product and Separate Account charges follows.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
CURRENT RATE GUARANTEED RATE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Premium Expense Charge All Coverage Years: 8.5% of All Coverage Years: 10.0% of
premium up to Premium Expense premium up to Premium Expense
Factor; 5.0% of premium over Factor; 7.5% of premium over
Premium Expense Factor. Premium Expense Factor.
- ---------------------------------------------------------------------------------------------------------------------
Administrative Charge Policy Years 1-10: $12 per month per All Policy Years: $12 per month per
policy. policy.
Policy Years 11+: $8 per month per
policy.
- ---------------------------------------------------------------------------------------------------------------------
Face Amount Charge A rate that varies by the Issue Ages, A rate that varies by the Issue Ages,
genders, and risk classifications of the genders, and risk classifications of the
Insureds, and the year of coverage. Insureds, and the year of coverage.
The monthly rate, per $1,000 of Face The monthly rate, per $1,000 of Face
Amount, ranges from: Amount, ranges from:
Coverage Years 1-10: $0.05 to $0.17 Coverage Years 1-10: $0.08to $0.20
Coverage Years 11+: $0.00 Coverage Years 11+: $0.00
- ---------------------------------------------------------------------------------------------------------------------
Insurance Charges A per-thousand rate applied to the For standard risks, the guaranteed cost
insurance risk each month. The rate of insurance rates are based on the
varies by the Issue Ages, genders, and Commissioners 1980 Standard
risk classifications of the Insureds, Ordinary (CSO) Mortality Tables.
and the year of coverage.
- ---------------------------------------------------------------------------------------------------------------------
Mortality and Expense All Policy Years: 0.25%, on an annual All Policy Years: 0.60%, on an annual
Risk Charge basis, of daily net asset value of the basis, of daily net asset value of the
Separate Account. Separate Account.
- ---------------------------------------------------------------------------------------------------------------------
Investment Management (See separate table on next page.)
Fees and Other Expenses
- ---------------------------------------------------------------------------------------------------------------------
Loan Rate Expense Policy Years 1-10: 0.50% of loaned All Policy Years: 0.80% of loaned
Charge amount. amount.
Policy Years 11+: 0.25% of loaned
amount.
- ---------------------------------------------------------------------------------------------------------------------
Withdrawal Fee $25 $25
- ---------------------------------------------------------------------------------------------------------------------
Surrender Charges Coverage Years 1-5: Based on the Coverage Years 1-5: Based on the
Target Premium (but not to exceed Target Premium (but not to exceed
$45 per thousand of Face Amount). $45 per thousand of Face Amount).
Coverage Years 6-14: The preceding Coverage Years 6-14: The preceding
year surrender charge reduced by 10% year surrender charge reduced by 10%
of the first-year surrender charge. of the first-year surrender charge.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
The Premium Expense Factor referenced above is used to determine the premium
expense charge and sales compensation. The Premium Expense Factor is shown in
the policy; it can be quoted upon request before the policy is issued. Examples
of current Premium Expense Factors per $1,000 of Face Amount, for a Male and
Female, both Non-Tobacco risk class, are: Both Age 25 - $2.48; Both Age 55 -
$11.45; Both Age 85 - $58.32. The Premium Expense Factor for your policy will be
based on the Issue Ages, genders, and risk classes of the Insureds, and on the
Face Amount.
The Target Premium referenced above is used to determine surrender charges.
Although the Target Premium is not shown in the policy, the surrender charges
are listed in the policy; they can be quoted upon request before the policy is
issued. Examples of current Target Premiums per $1,000 of Face Amount, for a
Male and Female, both Non-Tobacco risk class, are: Both Age 25 - $2.48; Both Age
55 - $11.45; Both Age 85 - $58.32. The Target Premium for your policy will be
based on the Issue Ages, genders, and risk classes of the Insureds, and on the
Face Amount.
4 Introduction
<PAGE>
INVESTMENT MANAGEMENT FEES
AND OTHER EXPENSES
Total fund operating expenses expressed as a percentage of average net assets
for the year ended December 31, 1998.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Total Fund
Management Other Operating
Fund Name Fees Expenses Expenses
- ----------------------------------- ---------- -------- ----------
<S> <C> <C> <C>
MML Equity Fund 0.37% 0.00% 0.37%
MML Money Market Fund 0.46% 0.03% 0.49%
MML Managed Bond Fund 0.45% 0.03% 0.48%
MML Blend Fund 0.37% 0.00% 0.37%
MML Equity Index Fund 0.30% 0.20% 0.50%
MML Small Cap Value Equity Fund 0.39% 0.05% 0.44%
MML Growth Equity
MML Small Cap Growth Equity
Oppenheimer Aggressive Growth Fund/VA 0.69% 0.02% 0.71%
Oppenheimer Global Securities Fund/VA 0.68% 0.06% 0.74%
Oppenheimer Capital Appreciation Fund/VA 0.72% 0.03% 0.75%
Oppenheimer Strategic Bond Fund/VA 0.74% 0.06% 0.80%
Oppenheimer Main Street Growth & Income
Fund/VA
Oppenheimer High Income Fund/VA
Oppenheimer Bond Fund/VA
VIP II Contrafund(R) Portfolio* 0.59% 0.07% 0.66%
T. Rowe Price Mid-Cap Growth Portfolio 0.85% 0.00% 0.85%
American Century's VP Income & Growth Fund N/A N/A 0.70%
Bankers Trust's Small Cap Index
Goldman Sachs Capital Growth
Janus Aspen Worldwide Growth Portfolio
Janus Aspen Capital Appreciation Portfolio
Templeton International
- -----------------------------------------------------------------------------------------------------
</TABLE>
*A portion of the brokerage commissions that Contrafund pays was used to reduce
the Other Expenses for the fund. In addition, Contrafund, or the investment
manager on behalf of the fund, entered into an arrangement with a fund custodian
whereby credits realized as a result of non-invested cash balances were used to
reduce custodian expenses. Without such reductions, the Other Expenses would
have been 0.11%, increasing the Total Fund Operating Expenses to 0.70%.
Introduction 5
<PAGE>
II. Detailed Description of Policy Features
Purchasing the Policy
To purchase a policy, you must send a completed application to our
Administrative Office. The minimum Initial Face Amount of a policy is currently
$100,000. The policy can be issued for two Insureds where the older Insured is
between the ages of 18 and 90 inclusive, and the younger Insured is between the
ages of 18 and 85 inclusive. Before issuing a policy, we will require evidence
of insurability. This usually will require a medical examination.
We determine whether to accept or reject the application for the policy and the
Insureds' risk classifications. If we do not accept the application, we will
refund any premium paid.
Coverage under the policy becomes effective on the Issue Date of the policy or,
if later, the date the first premium is paid. See Premiums for more about the
first premium. For the first premium to be paid, we must receive it in good
order.
Unisex Policy. Policies generally are issued with values that vary based on the
genders of the Insureds. Policies purchased in Montana are "unisex"; that is,
the policy values do not vary by the genders of the Insureds. Policies purchased
elsewhere as part of an employee benefit plan also may have policy values that
do not vary by gender. References in the prospectus to sex-distinct policy
values are not applicable to unisex policies. Upon request we will provide you
illustrations showing the effect of unisex rates on premiums, net surrender
values, and death benefits.
Right to Return the Policy. Once you receive your policy, you should review it
carefully. If you are not satisfied with your policy, you may cancel it within
10 days after you receive it. (This period of time may vary by state.)
To cancel the policy, return it to us at our Administrative Office, to the agent
who sold the policy, or to one of our agency offices. If you cancel your policy,
we will give you a refund.
In most states, this refund is the sum of:
(i) any premium paid for the policy; plus
(ii) any interest credited to the policy under the GPA; plus or minus
(iii) an amount reflecting the investment experience of the divisions of the
Separate Account under this policy to the date we receive the policy;
minus
(iv) any amounts withdrawn and any policy debt.
In other states, this refund is equal to any premium paid for the policy,
reduced by any amounts withdrawn and any policy debt.
Consult your policy to determine which refund applies under your policy. A few
states have variations of these two refund types.
Death Benefit
While the policy is in force, we will pay the death benefit to the named
Beneficiary at the second death. Although we normally will pay the death benefit
within seven days of receiving satisfactory proof of the Insureds' deaths, we
may delay payments under certain circumstances. All or part of the death benefit
can be paid in cash or under one or more of the payment options described in the
policy.
Minimum Death Benefit. In order to qualify as life insurance under Internal
Revenue Code ("IRC") Section 7702, the policy has a minimum death benefit
determined by one of two compliance tests. You choose the test when you apply
for the policy. You cannot change your choice of test after the policy is
issued.
Under one test, the Cash Value Test, the minimum death benefit is equal to a
percentage of the account value. The percentage depends on the genders (male,
female, unisex), tobacco classifications, and Attained Ages of both Insureds.
Under the other test, the Guideline Premium Test, the minimum death benefit also
is equal to a percentage of the account value, but the percentage
6 Detailed Description of Policy Features
<PAGE>
varies only by the Attained Age of the younger Insured. The percentages are
shown in the policy.
Your choice of the Guideline Premium Test or the Cash Value Test will depend on
how you intend to pay premiums. In general, if you intend to pay premiums in
early policy years only, the Cash Value Test may be more appropriate. If you
intend to pay level premiums over a long period of years, the Guideline Premium
Test may be more appropriate. You should see policy illustrations of both
approaches to determine how the policy works under each approach, and which is
better for you.
Death Benefit Options. The death benefit is the benefit provided under the Death
Benefit Option in effect on the date of the second death. This benefit is
reduced by any outstanding policy debt and any due but unpaid premium needed to
avoid policy termination. You may choose one of three Death Benefit Options:
(a) Option 1 (a level amount option) or
(b) Options 2 or 3 (variable amount options).
You choose the Death Benefit Option in the application and you may change the
option at a later date subject to certain restrictions described in Changes in
Death Benefit Option.
The death benefit provided by Options 1, 2, and 3 is as follows.
Option 1 - The benefit is the greater of:
(a) the Face Amount on the date of the second death; and
(b) the minimum death benefit on the date of the second death.
Option 2 - The benefit is the greater of:
(a) the Face Amount plus the account value on the date of the second death; and
(b) the minimum death benefit on the date of the second death.
Option 3 - The benefit is the greater of:
(a) the Face Amount plus the premiums paid less any premiums refunded under the
policy to the date of the second death; and
(b) the minimum death benefit on the date of the second death.
See Appendix B for examples of how changes in account value and the amount of
premiums paid may affect the death benefit of a policy.
Changes in Death Benefit Option. After the first Policy Year, you may change the
Death Benefit Option. You must provide a written application and you may have to
provide evidence that the Insureds still are insurable. The effective date of a
change will be the Monthly Charge Date on or preceding the date we approve the
change. A change in the Death Benefit Option will result in a change of the
policy Face Amount. The death benefit under the new Death Benefit Option will be
the same as the death benefit under the old Death Benefit Option at the time of
the change.
You cannot change the Death Benefit Option if:
1. the Face Amount is reduced to less than $100,000 as a result of the change;
2. the Attained Age of the younger Insured has reached 85, or of the older
has reached 90, or
3. only one of the Insureds is alive.
When the policy Face Amount changes as a result of a change in the Death Benefit
Option, the monthly charges also will change. The change in Face Amount also may
change the charges for certain additional benefits. The change in Face Amount
will not change the policy surrender charge.
For examples of Death Benefit Option changes and how they impact the contract,
see Appendix B.
Changes in Face Amount. You may request an increase or decrease in the Face
Amount by submitting a written request for a change of Face Amount to our
Administrative Office. The Face Amount change will be effective on the Monthly
Charge Date on or preceding our approval of the request.
Increases in Face Amount. You must provide us with a written application and
evidence the Insureds still are insurable to increase your Face Amount. An
increase may not be less than $50,000. You may not increase the Face Amount of
the policy after the younger Insured reaches Attained Age 85 or, if earlier,
after the older Insured reaches Attained Age 90.
If you increase the policy Face Amount, the monthly charges will increase.
Decrease in Face Amount. After the first Policy Year, you may decrease the
policy Face.
Detailed Description of Policy Features 7
<PAGE>
If you increase the policy Face Amount, the monthly charges will increase.
Decreases in Face Amount. After the first Policy Year, you may decrease the
policy Face Amount at any time (except during the 12-month period following a
Face Amount increase). You must send a written request to us. You may not
decrease the Face Amount if the decrease would result in a Face Amount of less
than $100,000.
If you decrease the Face Amount, a surrender charge may apply. We
will deduct surrender charges from the division(s) of the Separate Account and
from the GPA in proportion to the non-loaned values in each.
A decrease will reduce the Face Amount in the following order:
(a) the Face Amount of the most recent increase; then
(b) the Face Amounts of the next most recent increases successively; and last
(c) the Initial Face Amount.
If you decrease the Face Amount, the monthly charges deducted from the account
value will decrease.
If you decrease the Face Amount, the policy may become a "modified endowment
contract" under federal tax law. Consult your tax adviser. (See also Modified
Endowment Contracts in Part V.)
Premiums
The first premium must be paid before the policy can become effective.
Thereafter, within limits you may make premium payments at any time and in any
amount. Net premiums are allocated to the account value as you choose.
First Premium. Generally, you determine the first premium you want to pay for
the policy; but it must be at least equal to the minimum initial premium. The
minimum initial premium depends on your chosen premium frequency, Initial Face
Amount and Death Benefit Option, and on the Issue Age, gender, and risk
classification of each Insured.
Planned Premiums. When applying for the policy, you select the planned premium
amount and the payment frequency (annual, semiannual, quarterly, or monthly
check service). The planned premium must be at least $20. The amount of the
planned premium and the payment frequency you select are shown in the policy. We
will send you premium notices based on your selections. To change the amount and
frequency of planned premiums, send a written notice to us at our Administrative
Office.
If a planned premium payment is not made, the policy will not necessarily
terminate. Conversely, making planned premium payments does not guarantee that
the policy will remain in force. To keep the policy in force, you must either
have a sufficient account value or meet the safety test. See Grace Period and
Termination.
Premium Payments and Flexibility. After you have paid the first premium, within
limits you may pay any amount at any time while at least one Insured is living.
Send all premium payments to us either at our Administrative Office or at the
address shown on the premium notice.
You may elect to pay premiums by pre-authorized check. Under this procedure, we
automatically deduct premium payments each month from a bank account you
designate. We will not send a bill for these automatic payments.
Premium Limitations. The minimum premium payment is $20.
If you choose the Cash Value Test to qualify your policy as life insurance, the
maximum premium each Policy Year is the greatest of:
(a) an amount equal to $100 plus double the Premium Expense Factor for the
policy;
(b) the amount of premium paid in the preceding Policy Year; and
(c) the highest premium payment amount that would not increase the insurance
risk (see Insurance Charges).
We may refund any amount of premium payment that exceeds the Cash Value Test
limit.
If you choose the Guideline Premium Test, the maximum premium for each Policy
Year is the lesser of:
(a) the maximum premium for the Cash Value Test; and
(b) the Guideline Premium Test amount which will be stated in the policy.
8 Detailed Description of Policy Features
<PAGE>
If you choose the Guideline Premium Test, we will refund any amount of premium
payment that exceeds the Guideline Premium Test limit. In this case, you may
instead increase the Face Amount, by meeting the requirements for the increase,
so that the premium payment is within the increased premium limit. Otherwise,
the policy would no longer qualify as life insurance under federal tax law.
Allocating Net Premiums. A net premium is a premium payment we receive in good
order, minus the premium expense charge.
Net Premiums Received through Issue Date. We will allocate any net premiums
received through the Issue Date of the policy to our general investment account.
Any net premiums received before the Policy Date will be allocated as of that
Date. We will credit interest at the rate(s) we use for the GPA during that
time.
Register Date and Valuation Date. Net premiums credited to the policy on and
after the Register Date will be allocated among the divisions and the GPA
according to your net premium allocation. Also, any values in the policy held
before the Register Date will be allocated on that Date among the divisions and
the GPA according to your net premium allocation on that Date.
The Register Date must be a Valuation Date. A Valuation Date is any date on
which the New York Stock Exchange is open for trading.
We set the Register Date for the policy. It depends on the type of refund
offered under the Right To Return provision in your policy. Refer back to
Purchasing the Policy for information about this provision.
If the refund includes interest and investment experience, the Register Date is
the Valuation Date that is on, or next follows, the later of:
(a) the day after the Issue Date of the policy; and
(b) the day we receive the first premium payment in good order.
If the refund does not include interest or investment experience:
1. The Register Date is the first Valuation Date after the end of the Right
To Return period;
2. Any net premiums received after the Issue Date but before the Register Date
will be allocated to the Money Market division; and
3. Any values in the policy held as of the Issue Date will be allocated to the
Money Market division on the first Valuation Date after the Issue Date.
Net Premium Allocation. When applying for the policy, you indicate how you want
net premiums allocated among the divisions and the GPA. You may change your net
premium allocation at any time. Just send a written notice to us at our
Administrative Office.
You may set your net premium allocation in terms of whole-number percentages
that add to 100%. (Also see Overall Limitation on Net Premium Allocations and
Transfers.)
Transfers
You may transfer all or part of the account value invested in a division of the
Separate Account to any other division or to the GPA. Simply send us a written
request. Although currently there is no limit on the number of transfers you may
make, we reserve the right to limit the number to no more than one every 90
days. If we impose a limit, it would not apply to a transfer of all funds in the
Separate Account divisions to the GPA or to transfers made in connection with
any automated-transfer program we offer.
We limit transfers from the GPA to the Separate Account divisions to one each
Policy Year. You may not transfer more than 25% of the fixed account value (less
any policy debt) at the time of the transfer. There is one exception to this
rule. If you:
. have transferred 25% of the fixed account value each year for three
consecutive Policy Years; and have neither
. allocated net premiums to the GPA , nor
. transferred any money into the GPA during these three Years; then
you may transfer the remainder of the fixed account value (less any policy debt)
out of the
Detailed Description of Policy Features 9
<PAGE>
GPA in the succeeding Policy Year. In this case, you must transfer the full
amount out of the GPA in one transaction.
Any transfer is effective on the Valuation Date at the price next determined
after we receive the request in good order at our Administrative Office. We do
not charge for transfers.
Overall Limitation on Net Premium Allocations and Transfers. You may allocate
net premiums and transfer amounts to up to 16 divisions over the life of the
policy. We reserve the right to increase this limit.
In addition, we may need to further limit access to divisions of the Separate
Account, so the policy will continue to qualify as life insurance. See Investor
Control, under Federal Income Tax Considerations, in Section V. Other
Information, for more information.
Policy Termination and Reinstatement
The policy will not terminate simply because you do not make planned premium
payments. Conversely, making planned premium payments does not guarantee that
the policy will remain in force.
The policy may terminate if its account value cannot cover the monthly charges
and the safety test is not met.
If the policy does terminate, you may be permitted to reinstate it.
Grace Period and Termination. The policy may terminate without value if:
. its account value, less any outstanding policy debt, on a Monthly Charge
Date cannot cover the monthly charges due; and
. the safety test is not met on that Date.
However, we allow a grace period for payment of the premium amount (not less
than $20) needed to avoid termination. We will mail you a notice stating this
amount.
The policy will terminate without value if we do not receive the required
payment by the end of the grace period.
Grace Period. The grace period begins on the date the monthly charges are due.
It ends 61 days after that date or, if later, 31 days after the date we mail the
notice stating the amount needed.
During the grace period, the policy will stay in force. If the second death
occurs during the grace period, the death benefit will be payable. In this case,
any due but unpaid premium amount needed to avoid termination will be deducted
from the death benefit.
Safety Test. The safety test allows you to keep the policy in force, regardless
of the account value of the policy, by making minimum premium payments. But the
safety test can be met only during the Guarantee Period(s) stated in the policy.
Each Guarantee Period has an associated monthly Guarantee Premium. The amount of
each Guarantee Premium depends on the Issue Age, gender, and risk classification
of each Insured, and on the Face Amount and Death Benefit Option.
For each Guarantee Period, the safety test is met if (A) equals or exceeds (B),
defined as:
(A) premiums paid less any amounts withdrawn, accumulated at an effective
annual interest rate of 3%;
(B) monthly Guarantee Premiums paid on each Monthly Charge Date beginning on
the Policy Date, accumulated at an effective annual interest rate of 3%.
In (A) above, we exclude any premiums refunded (see Premium Limitations).
Example:
The policy is in the First Guarantee Period. The monthly First Guarantee
Premium is $25. You have made premium payments of $35 on each Monthly
Charge Date beginning on the Policy Date. In this case, the safety test is
met. Even if the account value cannot cover the monthly charges, the policy
will stay in force.
Generally, the policy has two Guarantee Periods. The First Guarantee Period is
the first 20 Policy Years or, if less, to Attained Age 90 of the younger
Insured. The Second Guarantee Period is to
10 Detailed Description of Policy Features
<PAGE>
Attained Age 100 of the younger Insured. Both Guarantee Periods begin on the
Policy Date.
The Guarantee Periods for your policy are shown in the policy. If the "contract
state" of your policy is Massachusetts, only one Guarantee Period is available;
it will not exceed the first five Policy Years. The Guarantee Periods available
may vary in other states as well. Consult your policy for the Guarantee Periods
available to you.
Reinstating Your Policy. If your policy terminates, you may reinstate it--that
is, put it back in force. But you may not reinstate your policy if:
. you surrendered it; or
. five years have passed since it terminated; or
. the younger Insured's Attained Age exceeds 99; or
. an Insured has died since the policy terminated.
Requirements to Reinstate Your Policy. To reinstate your policy, we will need:
1. a written application to reinstate;
2. evidence, satisfactory to us, that each Insured living when the policy
terminated still is insurable; and
3. a premium payment sufficient to keep the policy in force for three months
after reinstatement. The minimum amount of this premium payment will be
quoted on request.
Policy after You Reinstate. If you reinstate your policy, the Face Amount will
be the same as it was when it terminated. Your account value at reinstatement
will be the premium paid at that time, reduced by the premium expense charge and
any monthly charges then due. (Monthly charges for the period before
reinstatement are not recovered.) Surrender charges after reinstatement will
apply as if the policy had not terminated. However, if the surrender charge was
taken when the policy terminated, then the applicable surrender charges will not
be reinstated.
If you reinstate your policy, it may become a "modified endowment contract"
under current federal tax law. Consult your tax adviser.
Charges and Deductions
We will deduct charges from the policy to compensate us for:
(a) providing the insurance benefits under the policy (including any riders);
(b) administering the policy;
(c) assuming certain risks in connection with the policy (including any
riders); and
(d) selling and distributing the policy.
In addition, the fund managers deduct expenses from the funds. For more
information about these expenses, see the individual fund prospectuses.
Deductions from Premiums
We deduct a premium expense charge from each premium payment you make. The
premium expense charge rate is higher for premium payments up to Premium Expense
Factor than for premium payments over Premium Expense Factor. The Premium
Expense Factor is based on the Issue Ages, genders, and risk classifications of
the Insureds.
If you have increased the policy Face Amount, we allocate premium payments to
the Initial Face Amount and to all increases based on the relative size of the
Premium Expense Factor for each.
Monthly Charges Against the Account Value
We deduct charges from the account value on each Monthly Charge Date. The
monthly charges are:
(a) an administrative charge;
(b) a face amount charge;
(c) an insurance charge; and
(d) a rider charge for any additional benefits provided by rider.
We deduct the monthly charges from the division(s) and the GPA in proportion to
the non-loaned values of the policy in the division(s) and the GPA.
Monthly charges beyond Attained Age 99 of the younger Insured are zero.
Detailed Description of Policy Features 11
<PAGE>
Administrative Charge and Face Amount Charge. The monthly administrative charge
and face amount charge reimburse us for issuing and administering the policy,
and for such activities as processing claims, maintaining records, and
communicating with you.
Insurance Charges. The monthly insurance charge for a policy is equal to the
insurance risk under the policy, multiplied by the monthly insurance charge rate
for that policy month. We determine the insurance risk on the first day of each
policy month. It is the amount by which the death benefit (discounted at the
monthly equivalent of 3% per year) exceeds the account value.
Insurance rates are based on the Issue Ages, genders, and risk classes of the
Insureds, and the year of coverage. We currently place Insureds into the
following five standard rate classes: Ultra Preferred Non-Tobacco, Select
Preferred Non-Tobacco, Non-Tobacco, Select Preferred Tobacco, and Tobacco. We
also have rate classes for less-favorable mortality risks. In otherwise
identical policies, the monthly insurance rate is higher for tobacco users than
for those who do not use tobacco and higher for Non-Tobacco Insureds than for
Ultra Preferred Non-Tobacco Insureds.
Rider Charge. You can obtain additional benefits by requesting riders on your
policy. The monthly rider charges include any charges for benefits you add by
rider.
Daily Charges Against the Separate Account
Mortality and Expense Risk Charge. Each day we deduct a charge from the Separate
Account for mortality and expense risks. We do not deduct this charge from the
assets in the GPA.
The mortality risk is a risk that the group of lives we insure may, on average,
live for shorter periods of time than we estimated. The expense risk is a risk
that our costs of issuing and administering policies may be more than we
estimated.
If we do not need all the money we collect in mortality and risk charges to
cover death benefits and expenses, the amount we do not need will be our gain.
However, even if the money we collect is not enough to cover death benefits and
expenses, we will pay all death benefits and expenses.
Investment Management Fee and Other Expenses. Each fund incurs investment
management fees and other expenses. These are deducted from the fund.
Surrender Charges
If you fully surrender the policy or decrease the Face Amount during the
first 14 Policy Years, we will take a surrender charge against the account
value. This also applies during the first 14 years after an increase in Face
Amount.
We calculate surrender charges separately for the Initial Face Amount and for
each increase in the Face Amount. The surrender charge in the first five years
of coverage is based on the Target Premium. Then, the surrender charge is
decreased by 10% of the first-year surrender charge in each of the next nine
years of coverage, and is zero in the fifteenth and later years.
Decrease in Face Amount. If you decrease your policy Face Amount, we cancel all
or a part of your Face Amount segments. We take a partial surrender charge from
the account value. The partial surrender charge is equal to the surrender charge
associated with each decreased or canceled Face Amount segment. If the partial
surrender charge for a decreased or canceled Face Amount segment would be
greater than the account value of the policy, we set the partial surrender
charge equal to the account value on the date of the surrender.
After a Face Amount decrease, we reduce the surrender charge for the remaining
segments by the amount of the partial surrender charge taken.
Other Charges
Withdrawal Fee. If you make a withdrawal from your policy, we deduct $25 from
the amount you withdraw. This fee is guaranteed not to exceed $25.
Loan Interest Rate Expense Charge. This charge reimburses us for administering
policy loans.
12 Detailed Description of Policy Features
<PAGE>
Special Circumstances
We may vary the charges and other terms of policies where special circumstances
result in sales or administrative expenses or insurance risks that are different
from those normally associated with these policies. We will make these
variations only in accordance with uniform rules we establish.
Account Value and Net Surrender Value
The account value of the policy has two components: the variable account value
and the fixed account value.
Variable Account Value. The variable account value is the sum of your values in
each of the divisions of the Separate Account. It reflects:
. net premiums allocated to the Separate Account;
. transfers to the Separate Account from the Guaranteed Principal Account;
. transfers and withdrawals from the Separate Account;
. monthly charges and surrender charges deducted from the Separate Account;
and
. the net investment experience of the Separate Account.
These transactions are all reflected in the variable account value through the
purchase and sale of accumulation units.
Net Investment Experience and Accumulation Units. The net investment experience
of the variable account value is reflected in the value of the accumulation
units. The value of your accumulation units in a division is equal to:
. the accumulation unit value in that division; multiplied by
. the number of accumulation units in that division credited to your policy.
We purchase and sell accumulation units at the unit value as of the closing time
of the New York Stock Exchange on the Valuation Date processed.
If we receive a premium or a transaction request in good order before the
closing time on a Valuation Date, units will be purchased or sold as of that
Valuation Date. If we receive it in good order after that time, units will be
purchased or sold as of the next Valuation Date.
The variable account value of the policy is the total of the values of the
accumulation units in each division credited to policy.
Fixed Account Value. The fixed account value is the accumulation at interest of:
. net premiums allocated to the Guaranteed Principal Account; plus
. amounts transferred into the GPA from the Separate Account; less
. amounts transferred or withdrawn from the GPA; and less
. monthly charges and surrender charges deducted from the GPA.
Interest on the Fixed Account Value. The fixed account value earns interest at
an effective annual rate, credited daily.
For the part of the fixed account value equal to any policy loan, the daily rate
we use is the daily equivalent of:
. the annual loan interest rate minus the loan interest rate expense charge;
or
. 3% if greater.
For the part of the fixed account in excess of any policy loan, the daily rate
we use is the daily equivalent of:
. the current interest rate we declare; or
. the guaranteed calendar-year interest rate we declare for the year if
greater.
This guaranteed calendar-year rate for each year will be at least 3%.
Net Surrender Value. The net surrender value of the policy is equal to:
. the account value; less
. any surrender charges that apply; and less
. any policy debt.
You may surrender your policy by written request. We will determine the net
surrender
Detailed Description of Policy Features 13
<PAGE>
value at the end of the Valuation Date on which we receive the request in good
order.
Withdrawals. After the first Policy Year, you may withdraw up to 75% of the net
surrender value. We deduct a fee of $25 from the amount withdrawn. We do not
charge a surrender charge for a withdrawal. The minimum amount you can withdraw
is $100 (including the withdrawal fee). We may not allow a withdrawal if it
would result in a reduction of the Face Amount to less than $100,000.
You must state in the withdrawal request from which divisions or the GPA you
want the withdrawal made. You can state the amount as a dollar amount or a
percentage. The withdrawal will be effective on the date we receive the written
request in good order. We will process it within seven days. The withdrawal
amount you wish taken from each division of the Separate Account and from the
GPA may not exceed the non-loaned account value in each of these. If you have
chosen Death Benefit Option 1 or 3, we will reduce the Face Amount by the amount
of the withdrawal unless you provide evidence satisfactory to us that the
Insureds or Insured alive still is insurable.
Policy Loan Privilege
General. After the first Policy Year, you may take a loan from the policy as
long as the account value exceeds the total of any surrender charges. You must
assign the policy to us as collateral for the loan. The maximum amount you can
borrow at any time is 90% of the policy's account value less any surrender
charge. If there is any outstanding policy debt (which includes accrued
interest), it reduces the maximum amount available.
Source of Loan. We take the policy loan amount from the divisions and the GPA in
proportion to the amount of account value in each division and the GPA
(excluding any outstanding loans) on the date of the loan. We reduce the amount
of units in the divisions of the Separate Account from which the loan is taken.
We transfer the resulting dollar amounts to the loaned portion of the GPA.
We may delay granting any loan you want taken from the GPA for up to six months.
We may delay granting any loan from the divisions during any period that:
(i) the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
(ii) trading is restricted;
(iii) the SEC determines a state of emergency exists; or
(iv) the SEC permits us to delay payment for the protection of our Owners.
Whenever total policy debt equals or exceeds the account value
less surrender charges, we will send a notice to you. This notice will state the
amount needed to bring the policy debt back within the limit. If we do not
receive this amount within 31 days after the date we mailed the notice, the
policy terminates without value.
Loan Interest Charged. At the time of application for the policy, you may select
a fixed loan interest rate of 4% or (in all jurisdictions except Arkansas) an
adjustable loan rate.
Each year we will set the adjustable rate that will apply for the next Policy
Year. The maximum loan rate is based on the Monthly Average Corporate yield on
seasoned corporate bonds as published by Moody's Investors Service, Inc. If this
Average is no longer published, we will use a similar average as approved by the
insurance department of your "contract state." The maximum rate is the greater
of:
(i) the published monthly average for the calendar month ending two months
before the Policy Year begins; and
(ii) 4%.
If the maximum rate is less than 1/2% higher than the rate in effect for the
preceding year, we will not increase the rate. If the maximum rate is at least
1/2% lower than the rate in effect for the preceding year, we will decrease the
rate.
Interest on policy loans accrues daily and becomes part of the policy debt as it
accrues. It is due on each Policy Anniversary Date. If you do not pay it when it
is due, the interest is added to the loan. As part of the loan, it will bear
interest at the loan rate. We will treat capitalized interest the same as a new
loan. We will take an amount equal to the interest due from the divisions and
14 Detailed Description of Policy Features
<PAGE>
the GPA in proportion to the non-loaned account value in each.
Repayment. You may repay all or part of any policy debt at any time while at
least one of the Insureds is living and while the policy is in force. Any loan
repayment you make within 30 days of a Policy Anniversary Date first pays policy
loan interest due. We will allocate any other loan repayment to the GPA until
you have repaid all loan amounts that were deducted from the GPA. We will
allocate additional loan repayments based on the net premium allocation then in
effect. You must clearly identify loan repayments as such, or we will consider
the payments premium payments.
We will deduct any outstanding policy debt from the proceeds payable at the
second death or upon the surrender of the policy.
Interest on Loaned Value. We deposit an amount equal to the loaned amount in the
GPA. This amount earns interest at a rate equal to the greater of 3% and a rate
equal to the policy loan rate less the loan interest rate expense charge rate.
We guarantee this charge rate will not exceed 0.80%. Currently, the charge rate
is 0.50% in Policy Years one through 10 and 0.25% in Policy Years 11 and later.
Effect of Loan. A policy loan affects the policy since we reduce the death
benefit and net surrender value by the amount of the loan. If you repay the
loan, we increase the death benefit and net surrender value under the policy by
the amount of the repayment. Taking a policy loan could have adverse tax
consequences if your policy is a "modified endowment contract" under current
federal tax law. Consult your tax adviser.
As long as a loan is outstanding, a portion of the policy account value equal to
the loan is invested in the GPA. This amount does not participate in the
Separate Account investment performance.
Detailed Description of Policy Features 15
<PAGE>
III. Investment Options
The Guaranteed Principal Account
You may allocate some or all of the net premiums to the Guaranteed Principal
Account ("GPA"). You also may transfer some or all of the account value in the
divisions of the Separate Account to the GPA. Neither our general investment
account nor the GPA is registered under federal or state securities laws.
Amounts allocated to the GPA become part of our general investment account. Our
general investment account consists of all assets owned by us other than those
in the Separate Account and in our other separate accounts. Subject to
applicable law, we have sole discretion over the investment of the assets of our
general investment account.
We guarantee amounts allocated to the GPA in excess of any policy loan will
accrue interest daily at an effective annual rate at least equal to 3%. For
amounts in the GPA equal to any policy loan, the guaranteed minimum interest
rate is an effective annual rate of 3% or, if greater, the policy loan rate less
the loan interest rate expense charge. This charge will not be greater than
0.80% per year. Interest will be credited at this rate regardless of the actual
investment experience of the GPA. In addition to the guaranteed minimum interest
rate, we will declare a guaranteed minimum calendar-year rate each December for
the upcoming calendar year. Interest we credit during any calendar year will not
be less than would be credited using this guaranteed minimum calendar-year rate.
Although we are not obligated to credit interest at a rate higher than the
guaranteed minimum, we may declare a higher rate.
The Separate Account
Our Board of Directors established the Separate Account on February 2, 1995, as
a separate investment account of C.M. Life. The Board established the Separate
Account based on the laws of the State of Connecticut. The Separate Account is
registered with the Securities and Exchange Commission as a unit investment
trust under the provisions of the Investment Company Act of 1940. We have
established a segment within the Separate Account to receive and invest premium
payments for the policies. We have since divided this segment into 23 divisions.
Each division invests in shares of a designated investment fund as follows:
Division Fund
- ---------------------------------------------------------------------
MML Equity MML Equity Fund
- ---------------------------------------------------------------------
MML Money Market MML Money Market Fund
- ---------------------------------------------------------------------
MML Managed Bond MML Managed Bond Fund
- ---------------------------------------------------------------------
MML Blend MML Blend Fund
- ---------------------------------------------------------------------
MML Equity Index MML Equity Index Fund
- ---------------------------------------------------------------------
MML Small Cap Value MML Small Cap Value Equity
Equity Fund
- ---------------------------------------------------------------------
MML Growth Equity MML Growth Equity Fund
- ---------------------------------------------------------------------
MML Small Cap Growth MML Small Cap Growth Equity
Equity Fund
- ---------------------------------------------------------------------
Oppenheimer Aggressive Oppenheimer Aggressive
Growth Growth Fund/VA
- ---------------------------------------------------------------------
Oppenheimer Global Oppenheimer Global
Securities Securities Fund/VA
- ---------------------------------------------------------------------
Oppenheimer Capital Oppenheimer Capital
Appreciation Appreciation Fund/VA
- ---------------------------------------------------------------------
Oppenheimer Strategic Oppenheimer Strategic Bond
Bond Fund/VA
- ---------------------------------------------------------------------
Oppenheimer Main Street Oppenheimer Main Street
Growth & Income Growth & Income Fund/VA
- ---------------------------------------------------------------------
Oppenheimer High Income Oppenheimer High Income
Fund/VA
- ---------------------------------------------------------------------
Oppenheimer Bond Oppenheimer Bond Fund/VA
- ---------------------------------------------------------------------
Fidelity VIP II Fidelity's VIP II Contrafund
Contrafund Portfolio
- ---------------------------------------------------------------------
T. Rowe Price Mid-Cap T. Rowe Price Mid-Cap Growth
Growth Portfolio
- ---------------------------------------------------------------------
American Century VP American Century's VP Income
Income & Growth & Growth Fund
- ---------------------------------------------------------------------
Bankers Trust Small Cap Bankers Trust's Small Cap
Index Index Fund
- ---------------------------------------------------------------------
Goldman Sachs Capital Goldman Sachs Capital Growth
Growth Fund
- ---------------------------------------------------------------------
Janus Aspen Capital Janus Aspen Capital
Appreciation Appreciation Portfolio
- ---------------------------------------------------------------------
Janus Aspen Worldwide Janus Aspen Worldwide Growth
Growth Portfolio
- ---------------------------------------------------------------------
Templeton International Templeton International Fund
- ---------------------------------------------------------------------
16 Investment Options
<PAGE>
We may establish additional divisions within the Segment in the future.
We own the assets in the Separate Account. We are required to maintain
sufficient assets in the Separate Account to meet anticipated obligations of the
policies funded by the Separate Account. We credit or charge the income, gains,
or losses, realized or unrealized, of the Separate Account against the assets
held in the Separate Account. We do not take any regard of the other income,
gains, or losses of C.M. Life. Assets in the Separate Account attributable to
the reserves and other liabilities under the policies cannot be charged with
liabilities from any other business conducted by C.M. Life. We may transfer to
our general investment account any assets that exceed anticipated obligations of
the Separate Account.
Some of the funds offered are generally identical to, or are "clones" of, mutual
funds offered in the retail marketplace. These "clone" funds have the same
investment objectives, policies, and portfolio managers as the retail funds and
usually were formed after the retail funds. While the clone funds generally have
identical investment objectives, policies and portfolio managers, they are
separate and distinct from the retail funds. In fact, the performance of the
clone funds may be dramatically different from the performance of the retail
funds due to differences in the funds' sizes, dates shares of stock are
purchased and sold, cash flows, and expenses. Thus, while the performance of the
retail funds may be informative, you should remember that such performance is
not the performance of the funds that support the policy. It is not an
indication of future performance of the policy funds.
The Funds
The investment funds available through the policy are offered by nine investment
companies and trusts. They each provide an investment vehicle for the separate
investment accounts of variable life and variable annuity contracts offered by
companies such as C.M. Life. Shares of these organizations are not offered to
the general public.
The assets of certain variable annuity separate accounts offered by C.M. Life,
an affiliate, or other life insurers are invested in shares of these funds.
Because these separate accounts are invested in the same underlying funds, it is
possible that conflicts could arise between policy owners and owners of the
variable annuity contracts.
The Boards of Trustees or Boards of Directors of the funds will follow
procedures developed to determine whether conflicts have arisen. If a conflict
exists, the Boards will notify the insurers and they will take appropriate
action to eliminate the conflicts.
We purchase the shares of each fund for the division at net asset value. All
dividends and capital gain distributions received from a fund are automatically
reinvested in that fund at net asset value, unless C.M. Life, on behalf of the
Separate Account, elects otherwise. We redeem shares of the funds at their net
asset values as needed to make payments under the policies.
MML Series Investment Fund ("MML Trust").
The MML Trust, managed by MassMutual, was organized as a Massachusetts business
trust on December 19, 1984. All eight of the diversified investment portfolios
of the Trust are available under this policy.
MML Equity Fund
Sub-adviser: David L. Babson & Company, Inc.
MML Equity Fund seeks to achieve a superior rate of return over time from both
capital appreciation and current income and to preserve capital by investing in
equity securities.
MML Money Market Fund
MML Money Market Fund seeks to maximize current income, to preserve capital, and
to maintain liquidity by investing in money market instruments.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund.
MML Managed Bond Fund
MML Managed Bond Fund seeks a high rate of return, consistent with capital
preservation, by investing primarily in investment grade, publicly traded, fixed
income securities.
MML Blend Fund
Sub-adviser: David L. Babson & Company, Inc. (equity segment of the fund)
MML Blend Fund seeks a high total rate of return over time, consistent with
prudent investment risk and capital preservation, by investing in equity, fixed
income and money market securities.
Investment Options 17
<PAGE>
MML Equity Index Fund
Sub-adviser: Mellon Equity Associates, LLP
MML Equity Index Fund seeks investment results that correspond to the price and
yield performance of publicly traded common stocks in the aggregate, as
represented by the Standard & Poor's 500 Composite Stock Price Index. ("Standard
& Poor's 500" and "S&P 500" are trademarks of The McGraw-Hill Companies, Inc.
and have been licensed for use by the Fund. The Fund is not sponsored, endorsed,
sold or promoted by Standard & Poor's, a division of The McGraw-Hill Companies
("S&P"), or The McGraw Hill Companies, Inc. Standard & Poor's makes no
representation regarding the advisability of investing in the Fund.)
MML Small Cap Value Equity Fund
Sub-adviser: David L. Babson & Company, Inc
The MML Small Cap Value Equity Fund seeks long-term growth of capital and income
by investing primarily in small company stocks.
MML Growth Equity Fund
Sub-adviser: Massachusetts Financial Services Company
The MML Growth Equity Fund seeks growth of capital and income over time by
investing primarily in equity securities of large companies with long-term
growth potential.
MML Small Cap Growth Equity Fund
Sub-advisers: J. P. Morgan Investment Management, Inc. (50%), and Waddell & Reed
Investment Management Company (50%)
The MML Small Cap Growth Equity Fund seeks growth of capital over time by
investing primarily in equity securities of smaller and medium-size companies
with long-term growth potential.
Oppenheimer Variable Account Funds ("Oppenheimer Trust").
The Oppenheimer Trust is managed by OppenheimerFunds, Inc. The Trust consists of
10 separate funds, seven of which are offered under this policy.
Oppenheimer Aggressive Growth Fund/VA
Oppenheimer Aggressive Growth Fund/VA is a mutual fund that seeks long-term
capital appreciation by investing in "growth-type" companies. Prior to May 1,
1998, the Fund was named Oppenheimer Capital Appreciation Fund.
Oppenheimer Global Securities Fund/VA
Oppenheimer Global Securities Fund/VA is a mutual fund that seeks long-term
capital appreciation by investing mainly in common stocks, and can also buy
other equity securities, including preferred stocks and securities convertible
into common stock.
Oppenheimer Capital Appreciation Fund/VA
Oppenheimer Capital Appreciation Fund/VA is a mutual fund that seeks long-term
capital appreciation by investing in securities of well-known established
companies. It invests mainly in equity securities.
Oppenheimer Strategic Bond Fund/VA
Oppenheimer Strategic Bond Fund/VA is a mutual fund that seeks a high level of
current income principally derived from interest on debt securities and seeks to
enhance such income by writing covered call options on debt securities. The Fund
invests in three market sectors: debt securities of foreign government and
companies, U.S. Government securities, and lower-rated, high-yield securities of
U.S. companies.
Oppenheimer Main Street Growth & Income Fund/VA
The Oppenheimer Main Street Growth & Income Fund/VA seeks total return (which
includes growth in the value of its shares as well as current income) from
equity and debt securities.
Oppenheimer High Income Fund/VA
The Oppenheimer High Income Fund/VA seeks a high level of current income. The
Fund invests in unrated securities or high risk securities in the lower rating
categories, commonly known as "junk bonds," which are subject to a greater risk
of loss of principal and non payment of interest than higher-rated securities.
Oppenheimer Bond Fund/VA
The Oppenheimer Bond Fund/VA seeks a high level of current income. The Fund
seeks capital
18 Investment Options
<PAGE>
growth when consistent with its primary objective. The Fund will, under normal
market conditions, invest at least 65% of its total assets in investment grade
securities.
Variable Insurance Products Fund II.
Variable Insurance Products Fund II ("Fidelity's VIP II"), managed by Fidelity
Management & Research Company ("FMR"), was organized as a Massachusetts business
trust on March 21, 1988. One of its investment portfolios, the VIP II Contrafund
Portfolio, is available under this policy.
Fidelity's VIP II Contrafund Portfolio
This Fund seeks long-term capital appreciation. It invests primarily in common
stocks. It also invests in the securities of companies whose value FMR believes
is not fully recognized by the public, in domestic and foreign issuers, and in
either "growth" stocks or "value" stocks or both.
T. Rowe Price Equity Series, Inc.
The T. Rowe Price Equity Series, Inc., wasincorporated in Maryland in 1994.
Currently, it consists of four series, each representing a separate class of
shares having different objectives and investment policies. One of the series,
the Mid-Cap Growth Portfolio, is available under this policy.
T. Rowe Price Mid-Cap Growth Portfolio
The T. Rowe Price Mid-Cap Growth Portfolio seeks to provide long-term capital
appreciation by investing in mid-cap stocks with potential for above-average
earnings growth. T. Rowe Price defines mid-cap companies as those with market
capitalizations within the range of companies in the S&P 400 Mid-Cap Index.
American Century Variable Portfolios, Inc.
American Century Variable Portfolios,Inc., is part of American Century
Investments, a family of funds that includes nearly 70 no-load mutual funds
covering a variety of investment opportunities. One of the funds, VP Income &
Growth Fund, is offered under this policy.
American Century's VP Income & Growth Fund
American Century's VP Income & Growth Fund seeks long-term growth of capital as
well as current income. The fund pursues a total return and dividend yield that
exceed those of the S&P 500 by investing in stocks of companies with strong
dividend growth potential.
BT Insurance Funds Trust.
BT Insurance Funds Trust ("BT Insurance Funds") was organized asa Massachusetts
business trust in 1996. The BT Small Cap Index Fund is a separate series of the
BT Insurance Funds Trust.
Bankers Trust Company is the investment adviser to the BT Small Cap Index Fund.
Bankers Trust Company is located at 130 Liberty Street, New York, NY 10006.
Bankers Trust's Small Cap Index Fund
The Bankers Trust's Small Cap Index Fund seeks to match, before expenses, the
risk and return characteristics of the Russell 2000 Index. The Fund will invest
primarily in common stocks of companies that comprise the Russell 2000 Index, in
approximately the same weightings as the Russell 2000 Index. The Fund may also
use stock index futures and options.
(The Russell 2000 index is a widely accepted benchmark of small company stock
performance. It is a model, not an actual portfolio and is a subset of the
Russell 3000 Index. The Russell 2000 tracks the 2000 smallest companies in the
Russell 3000. As of December 31, 1998, the weighted average market
capitalization of the companies in the Russell 2000 was $0.88 billion. That
compares to $72 billion for the companies in the Russell 3000.)
Goldman Sachs Variable Insurance Trust.
The Goldman Sachs VIT Trust is an open-end, management investment company,
organized in Delaware in September, 1997. The Goldman Sachs Capital Growth Fund
is a separate series of shares of the Trust.
Investment Options 19
<PAGE>
Goldman Sachs Capital Growth
The Goldman Sachs Capital Growth Fund seeks long-term growth of capital through
diversified investments in equity securities of companies that are considered to
have long-term capital appreciation potential.
Janus Aspen Series
Janus Aspen is an open-end management investment company. Janus Aspen Worldwide
Growth Portfolio and Janus Aspen Capital Appreciation Portfolio are each
separate portfolios of The Janus Aspen Series.
Janus Aspen Capital Growth Portfolio
The Janus Aspen Capital Appreciation Portfolio seeks long-term growth of
capital. The Portfolio invests primarily in common stocks selected for their
growth potential. The Portfolio may invest in companies of any size, from
larger, well-established companies to smaller, emerging growth companies.
Janus Aspen Worldwide Growth Portfolio
The Janus Aspen Worldwide Growth Portfolio seeks long-term growth of capital in
a manner consistent with the preservation of capital. The Portfolio invests
primarily in common stocks of companies of any size throughout the world.
Templeton Variable Products Series Fund ("Templeton Fund"). The ("Templeton
Fund is an open-end management investment company organized as a Massachusetts
business trust on February 25, 1988. The Templeton International Fund is a
separate series of the Templeton Fund.
Templeton International Fund - Class 2 Shares.*
The Templeton International Fund seeks long-term capital growth. The Fund
invests primarily in a diversified portfolio of non-U.S. common stocks.
*Subject to state availability.
Fund Profiles
Following Investment Options is a chart illustrating the risk profiles of the
investment options available under this policy, and a summary of the investment
objectives of each fund. Please note there can be no assurance any fund will
achieve its objectives. More detailed information concerning these investment
objectives and the funds is contained in the accompanying prospectuses,
including information on the risks associated with the investments, the
investment techniques of each of the funds, and the deduction of expenses
applicable to each of the funds.
20 Investment Options
<PAGE>
Equity Funds
<TABLE>
<CAPTION>
Value Blend Growth
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Large MML Equity Fund MML Equity Index Fund Fidelity's VIP II Contrafund(R)
Cap MML Blend Fund Oppenheimer Main St. Growth & Portfolio
Income Fund/VA Oppenheimer Capital
Goldman Sachs Capital Growth Appreciation Fund/VA
Fund MML Growth Equity Fund
Janus Aspen Capital
Appreciation Portfolio
- -----------------------------------------------------------------------------------------------------------------------
Medium American Century's VP Oppenheimer Aggressive Growth
Cap Income & Growth Fund Fund
T. Rowe Price Mid-Cap Growth
Portfolio
- -----------------------------------------------------------------------------------------------------------------------
Small MML Small Cap Value Equity Fund Bankers Trust's Small Cap MML Small Cap Growth Fund
Cap Index Fund
- -----------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund/VA
Global Janus Aspen Worldwide Growth Portfolio
- -----------------------------------------------------------------------------------------------------------------------
Inter- Templeton International Fund
national
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Bond Funds
<TABLE>
<CAPTION>
Short Term Medium Term Long Term
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
High MML Money Market Fund MML Managed Bond Fund
Quality
- -----------------------------------------------------------------------------------------------
Medium Oppenheimer Strategic Bond Oppenheimer Bond Fund/VA
Quality Fund/VA
- -----------------------------------------------------------------------------------------------
Low Quality Oppenheimer High Income Fund/VA
- ------------------------------------------------------------------------------------------------
</TABLE>
Investment Options 21
<PAGE>
The Investment Advisers
MassMutual serves as investment manager of each of the MML Trust funds under
investment management agreements. David L. Babson & Company, Inc. ("Babson"),
which is a controlled subsidiary of MassMutual, is the investment sub-adviser to
the MML Equity Fund, the equity sector of the MML Blend Fund, and the MML Small
Cap Value Equity Fund. Both MassMutual and Babson are registered investment
advisers under the Investment Advisers Act of 1940.
MassMutual entered into a sub-advisory agreement with Mellon Equity Associates,
LLP ("Mellon Equity"). Mellon Equity manages the investment and reinvestment of
the assets of the MML Equity Index Fund.
MassMutual has entered into a sub-advisory agreement with Massachusetts
Financial Services Company ("MFS"). MFS manages the investment of the MML Growth
Equity Fund.
MassMutual has entered into a sub-advisory agreement with J. P. Morgan
Investment Management, Inc. ("J.P. Morgan") and Waddell & Reed Investment
Management Company ("Waddell & Reed"). J. P. Morgan and Waddell & Reed each
manage 50% of the portfolio of MML Small Cap Growth Equity Fund.
OppenheimerFunds, Inc. ("OFI") is an investment adviser organized under the laws
of Colorado as a corporation; it was originally organized in 1959. It (including
a subsidiary) currently manages investment companies, including other
Oppenheimer funds, with assets of more than $95 billion as of December 31, 1998,
and with more than four million shareholder accounts. OFI is located at Two
World Trade Center, 34th Floor, New York, New York 10048-0203. OFI is owned by
Oppenheimer Acquisition Corporation, a holding company owned in part by senior
management of OFI and ultimately controlled by MassMutual. OFI serves as
investment adviser to the Oppenheimer Trust. OFI is registered as an investment
adviser under the Investment Advisers Act of 1940. OFI serves as Investment
Adviser to the Oppenheimer Funds.
Citibank N.A., with its home office located at 111 Wall Street, New York, NY
10005, acts as custodian for the MML Trust. Bank of New York, with its home
office at One Wall Street, New York, NY 10015, acts as custodian for the
Oppenheimer Trust.
MassMutual is also the investment adviser to MassMutual Corporate Investors and
MassMutual Participation Investors, closed-end investment companies, certain
wholly owned subsidiaries of MassMutual, and various employee benefit plans.
Fidelity Management & Research Company ("FMR") is the investment adviser to the
VIP II Contrafund Portfolio. FMR is the management arm of Fidelity
Investments(R), which was established in 1946. Fidelity Investments(R) has its
principal business address at 82 Devonshire Street, Boston, Massachusetts. FMR
handles the VIP II Contrafund(R) business affairs and, with the assistance of
affiliates, chooses the fund's investments. Fidelity Management & Research
(U.K.) Inc., in London, England, and Fidelity Management & Research (Far East),
Inc., serve as sub-advisers for the VIP II Contrafund(R) Portfolio.
T. Rowe Price Associates, Inc. ("T. Rowe Price"), is the investment adviser to
the T. Rowe Price Mid-Cap Growth Portfolio. T. Rowe Price was founded in 1937.
The T. Rowe Price Equity Series, Inc. (the "Corporation"), was incorporated in
Maryland in 1994, and is a diversified, open-end investment company. The
Corporation is governed by a Board of Directors that meets regularly to review
the fund's investments, performance, expenses, and other business affairs. The
policy of the Corporation is that a majority of Board members will be
independent of T. Rowe Price.
American Century Investment Management, Inc., is the investment adviser to the
American Century's VP Income & Growth Fund. Under the laws of the state of
Maryland, the Board of Directors is responsible for managing the business and
affairs of the fund. Acting under an investment management agreement entered
into with the fund, American Century Investment Management, Inc., serves as the
manager of the fund. Its principal place of business is American Century Tower,
4500 Main Street, Kansas City, Missouri. The manager has been providing
investment advisory services to
22 Investment Options
<PAGE>
investment companies and institutional investors since it was founded in 1958.
Bankers Trust Company, with headquarters at 130 Liberty Street, New York, NY
10006, acts as the investment adviser of BT Insurance Funds Trust.
Bankers Trust is a wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank
AG is a major global banking institution that is engaged in a wide range of
financial services, including investment management, mutual funds, retail and
commercial banking, investment banking and insurance. Deutsche Bank AG, as
Bankers Trust's parent company, controls its operations as investment adviser.
Goldman Sachs Asset Management ("GSAM"), a separate operating division of
Goldman, Sachs & Co. ("Goldman Sachs"), serves as investment adviser to the
Goldman Sachs Capital Growth Fund. Goldman Sachs registered as an investment
adviser in 1991. GSAM is located at One New York Plaza, New York, NY 10004.
Janus Aspen Series is an open-end management investment company.
The custodian for each fund of the Goldman Sachs VIT Trust is State Street Bank
and Trust Company. It is located at 1776 Heritage Drive, North Quincy, MA 02110.
Janus Aspen Capital Appreciation Portfolio and Janus Aspen Worldwide Growth
Portfolio are each separate portfolios of The Janus Aspen Series.
Janus Capital is the investment adviser to the Janus Aspen Capital Appreciation
Portfolio and the Janus Aspen Worldwide Growth Portfolio. Janus Capital is
located at 100 Fillmore Street, Denver, CO 80206-4928.
The Templeton Fund ("Templeton Fund") is an open-end management investment
company organized as a Massachusetts business trust on February 25, 1988. The
Templeton International Fund is a separate series of the Templeton Fund.
Templeton Investment Counsel, Inc. ("TIC") is the investment manager of the
Templeton International Fund. TIC is located at 500 East Broward Boulevard, Fort
Lauderdale, FL 33394-3091.
Investment Options 23
<PAGE>
IV. Other Policy Information
When We Pay Proceeds
If the policy has not terminated, we normally pay surrender, withdrawal, or loan
proceeds or the death benefit within seven days after we receive all required
documents in a form satisfactory to us at our Administrative Office.
We can delay payment of the death benefit, the net surrender value, or any
withdrawal or loan from the Separate Account during any period when:
(i) it is not reasonably practical to determine the amount because the New
York Stock Exchange is closed (other than customary week-end and holiday
closings); or
(ii) trading is restricted by the SEC; or
(iii) the SEC declares an emergency exists; or
(iv) the SEC, by order, permits us to delay payment in order to protect our
Owners.
We may delay paying any net surrender value, any withdrawal, or any loan
proceeds based on the GPA for up to six months from the date the request is
received at our Administrative Office.
We can delay payment of the entire death benefit if we contest the payment. We
investigate all death claims occurring within the two-year contestable period.
We may investigate death claims occurring beyond the two-year contestable
period. When we receive the information from a completed investigation, we
generally determine within five days whether we will authorize payment of the
claim. We make all payments promptly after authorization.
If we delay payment of a surrender or withdrawal for 30 days or more, we add
interest to the date of payment at the same rate it is paid under the interest
payment option. We pay interest on the death benefit from the date of death to
the date of payment.
Payment Options
We will pay the policy proceeds (the death benefit or the net surrender value)
in cash. Or if you wish, we will pay all or part of these under one or more of
the following payment options. The minimum amount that can be applied under a
payment option is $5,000. If the periodic payment under any option is less than
$50, we reserve the right to make payments at less-frequent intervals. None of
these benefits depends on the performance of the Separate Account or the GPA.
For additional information concerning these options, see the policy. The
following payment options are currently available.
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------------------------------
Installments for a Equal monthly payments for any period selected, up to 30 years. The amount
Specified Period of each payment depends on the total amount applied, the period selected,
and the monthly income rates we are using when the first payment is due.
- ------------------------------------------------------------------------------------------------------
Life Income Equal monthly payments based on the life of a named person. Payments will
continue for the lifetime of that person. You can elect income with or
without a minimum payment period.
- ------------------------------------------------------------------------------------------------------
Interest We will hold any amount applied under this option. We will pay interest on
the amount at an effective annual rate determined by us. This rate will
not be less than 3%.
- ------------------------------------------------------------------------------------------------------
</TABLE>
24 Other Information
<PAGE>
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------------------------------
Installments of Fixed amount payments. The total amount paid during the first year must be
Specified Amount at least 6% of the total amount applied. We will credit interest each
month on the unpaid balance and add this interest to the unpaid balance.
This interest will be an effective annual rate determined by us, but not
less than 3%. Payments continue until the balance we hold is reduced to
less than the agreed fixed amount. The last payment will be for the
balance only.
- ------------------------------------------------------------------------------------------------------
Life Income with Equal monthly payments based on the life of a named person. We will make
Payments Guaranteed for payments until the total amount paid equals the amount applied, whether
Amount Applied the named person lives until all payments have been made or not. If the
named person lives beyond the payment of the total amount applied, we will
continue to make monthly payments as long as the named person lives.
- ------------------------------------------------------------------------------------------------------
Joint Lifetime Income Monthly payments based on the lives of two named persons. We will make
with Reduced Payments payments at the initial level while both are living, or for 10 years if
to Survivor longer. When one dies (but not before the 10 years has elapsed), we will
reduce the payments by one-third. Payments will continue at that level for
the lifetime of the other. After the 10 years has elapsed, payments stop
when both named persons have died.
- ------------------------------------------------------------------------------------------------------
</TABLE>
Withdrawal Rights Under Payment Options. If provided in the payment option
election, you may withdraw or apply under any other option all or part of the
unpaid balance under the Fixed Amount or Interest Payment Option. You may not
withdraw any part of the payments under the Specified Period Payment Option or
payments that are based on a named person's life.
Beneficiary
A Beneficiary is any person named on our records to receive insurance proceeds
at the second death. The Applicant names the Beneficiary in the application for
the policy. You may name different classes of beneficiaries, such as primary and
secondary. These classes set the order of payment. There may be more than one
Beneficiary in a class.
You may change the Beneficiary during either Insured's lifetime by writing to
our Administrative Office. Generally, the change will take effect as of the date
of the request. If no Beneficiary is living at the second death, unless provided
otherwise, the death benefit is paid to you or, if deceased, to your estate.
Assignment
You may assign the policy as collateral for a loan or other obligation. For any
assignment to be binding on C.M. Life, however, we must receive a signed copy of
it at our Administrative Office. We are not responsible for the validity of any
assignment.
Limits on Our Right to Challenge the Policy
Except for any policy change or reinstatement requiring evidence of
insurability, we cannot contest the validity of the policy with respect to any
material misrepresentation in the application:
. regarding the insurability of Insured No. 1, once the policy has been in
force during the lifetime of Insured No. 1 for two years after the its Issue
Date; or
. regarding the insurability of Insured No. 2, once the policy has been in
force during the lifetime of Insured No. 2 for two years after the Issue
Date.
For any policy change or reinstatement requiring evidence the Insured(s) are
insurable, we cannot contest the validity of the change or reinstatement with
respect to each Insured after the change has been in effect for two years during
the lifetime of that Insured.
Other Policy Information 25
<PAGE>
Error of Age or Gender
If either Insured's age or gender is misstated in the policy application, we
will adjust the death benefit we pay under the policy based on what the policy
would provide based on the most recent monthly charge for the correct date of
birth and correct gender.
Suicide
Suicide within two years of the Policy Date is not covered by the policy. If
either Insured dies by suicide, while sane or insane, within two years from the
Issue Date or reinstatement date, the policy will terminate. We will refund the
amount of all premiums paid, less any withdrawals and policy debt. If either
Insured, while sane or insane, dies by suicide within two years after the
effective date of any increase in the Face Amount, the increase will terminate
and we will refund the monthly charges for that increase. However, if a refund
was payable as the result of suicide during the first two years following the
Issue Date or the reinstatement date of the policy, there is no additional
refund for any Face Amount increase.
Additional Benefits You Can Get by Rider
You can obtain additional benefits if you request them and qualify for them. We
provide additional benefits by riders. Additional benefits are subject to the
terms of both the rider and the policy. The cost of any rider is deducted as
part of the monthly charges. Subject to state availability, the following riders
are available.
Survivorship Term Rider. This rider provides level survivorship insurance on
the lives of the policy Insureds. The insurance is convertible for a limited
period of time. The Rider Face Amount must be at least $100,000 and must not
exceed two times the Face Amount under the base policy.
The Rider Face Amount may be increased or decreased. An increase requires
evidence of insurability and the increase must not raise the Rider Face Amount
to more than two times the policy Face Amount. The minimum increase amount is
$50,000. A decrease may not bring the Rider Face Amount below $100,000. If the
policy Face Amount decreases to an amount below one-half the Rider Face Amount,
the Rider Face Amount will be decreased to an amount equal to two times the
reduced policy Face Amount.
While both Insureds are living, coverage under the rider can be fully or
partially converted until the earlier of Attained Age 70 of the younger Insured
or Attained Age 80 of the older Insured. Conversion can be either to an
increase in Face Amount under the policy, or to a new survivorship life policy
we are offering for conversion at that time. Evidence of insurability will not
be required.
The rider terminates when the policy terminates or when the policy is changed to
another policy under which this rider is not available.
The monthly charge for this rider is the sum of the risk charge for the Rider
Face Amount and the rider face amount charge.
Policy Split Option Rider. This rider allows you to exchange the policy for two
new policies, one on the life of each Insured. Both Insureds must be living when
the exchange is made. We do not require evidence that the Insureds are
insurable. Each new policy may be a fixed premium permanent life policy or a
flexible premium adjustable life policy. This right will be available for the
six-month period beginning on:
. The date six months after the effective date of a final court decree of
divorce. The decree must first become effective at least one year after the
policy Issue Date, and it must remain in effect during the entire six-month
period after it first becomes effective.
. The date IRC Section 2056:
- is nullified;
- is amended to eliminate or reduce by at least 50% the Insureds' federal
estate tax marital deduction;
. The date the maximum federal estate tax rate given in IRC Section 2001 is
reduced to half the rate in effect on the policy Issue Date of this policy.
. The effective date of the dissolution of the corporation or partnership that
owns the policy.
26 Other Policy Information
<PAGE>
The new policies must meet the policy requirements in effect at the time of the
exchange.
. The face amount of each new policy will be one-half the Face Amount of this
policy at the time of the split. (If the policy also has the Survivorship
Term Rider, the amount of that rider is added to the policy Face Amount for
the split.)
. The policy date of each new policy will be the date of exchange.
. The issue age of each Insured will be the age of each Insured on the birthday
nearest the policy date of the new policies.
We attach this rider to the policy only at the time of policy issue, and only if
the younger Insured is younger than age 80 and the insurance risk class of
neither Insured is uninsurable.
There is no charge for this rider.
Estate Protection Rider. You may attach this rider to the policy only at the
time the policy is issued. It provides an additional death benefit during the
first four Policy Years if both Insureds die during this period. You select the
Face Amount of the rider. The minimum amount is $25,000 and the maximum amount
is 125% of the Initial Face Amount.
We will deduct a monthly charge from the account value for this rider. It will
equal the rider charge rate multiplied by the Face Amount of the rider, divided
by $1,000.
Accelerated Death Benefit Rider. This rider advances to the Owner a portion of
the policy death benefit, after the death of the first Insured to die, when we
receive proof, satisfactory to us, that the surviving Insured is terminally ill
and is not expected to live more than 12 months. In return for the advance
payment, a lien is placed on the policy, equal to the amount of benefit
accelerated. Interest is not charged on the lien.
Where this rider is available, we will include it with all policies. There is
no charge for this rider.
Sales and Other Agreements
MML Distributors, LLC ("MML Distributors"), 1414 Main Street, Springfield,
Massachusetts 01144-1013, is the principal underwriter of the policy. MML
Investors Services, Inc. ("MMLISI"), at the same address serves as the co-
underwriter of the policy. Both MML Distributors and MMLISI are registered with
the SEC as broker-dealers and are members of the National Association of
Securities Dealers, Inc. ("NASD").
MML Distributors may have selling agreements with other broker-dealers that are
registered with the SEC and are members of the NASD ("selling brokers"). We sell
the policy through agents who are licensed by state insurance officials to sell
the policy. These agents also are registered representatives of selling brokers
or of MMLISI. We intend to offer the policy in all states except California and
New York.
We also may contract with independent third party broker-dealers who may assist
us in finding broker-dealers to offer and sell the policies. These third parties
also may provide training, marketing and other sales related functions for us
and other broker-dealers. And they may provide certain administrative services
to us in connection with the policies.
MML Distributors does business under different variations of its name; including
the name MML Distributors, L.L.C., in the states of Illinois, Michigan,
Oklahoma, South Dakota, and Washington; and the name MML Distributors, Limited
Liability Company, in the states of Maine, Ohio, and West Virginia.
Both MML Distributors and MMLISI receive compensation for their activities as
underwriters of the policy.
Agents who sell these policies will receive commissions based on certain
commission schedules and rules. We pay some commissions as a percentage of the
premium paid in each year of coverage. These commissions distinguish between
premiums up to the Premium Expense Factor and premiums paid in excess of the
Premium Expense Factor. The Premium Expense Factor is based on the Issue Ages,
genders, and risk classifications of the Insureds. We also pay commissions as a
percentage of the average monthly account value in each Policy Year. The maximum
commission percentages are as follow.
Other Policy Information 27
<PAGE>
For coverage year 1, 50% of premium paid up to the Premium Expense Factor and 3%
of premium paid in excess of the Factor; for coverage years 2 through 5, 5% of
premium paid up to the Premium Expense Factor and 3% of premium paid in excess
of the Factor; for coverage years 6 through 10, 3% of all premium paid; and for
coverage years 11 and beyond, 1% of all premium paid. Also, for Policy Years 2
and beyond, 0.15% of the average monthly account value during the Year.
We may compensate agents who have financing agreements with general agents of
MassMutual differently. Agents who meet certain productivity and persistency
standards in selling C.M. Life and MassMutual policies are eligible for
additional compensation. General agents and district managers who are registered
representatives of MMLISI also may receive commission overrides, allowances and
other compensation.
We may pay independent, third-party broker-dealers who assist us in finding
broker-dealers to offer and sell the policies compensation based on premium
payments for the policies. In addition, some sales personnel may receive various
types of non-cash compensation as special sales incentives, including trips and
educational and/or business seminars.
While the compensation we pay to broker-dealers for sales of policies may vary
with the sales agreement and level of production, the compensation generally is
expected to be comparable to the aggregate compensation we pay to agents and
general agents.
28 Other Policy Information
<PAGE>
V. Other Information
C.M. Life and MassMutual
C.M. Life is a stock life insurance company located at 140 Garden Street,
Hartford, CT 06154. A Special Act of the Connecticut General Assembly chartered
the company on April 25, 1980. C.M. Life is engaged principally in the sale of
life insurance policies and annuity contracts, and is licensed to sell such
products in all states except New York. C.M. Life is a wholly owned subsidiary
of MassMutual. C.M. Life is licensed to transact variable life insurance
business in all states in the United States other than New York and California,
and in Puerto Rico and the District of Columbia.
MassMutual is a mutual life insurance company chartered in 1851 under the laws
of Massachusetts. Its Home Office is located in Springfield, Massachusetts.
MassMutual is licensed to transact life, accident, and health business in all
fifty states of the United States, the District of Columbia, Puerto Rico, and
certain provinces of Canada. As of December 31, 1998, MassMutual had
consolidated statutory assets in excess of $67 billion and estimated total
assets under management of $176.8 billion.
C.M. Life's Tax Status. C.M. Life is taxed as a life insurance company under
Subchapter L of the Internal Revenue Code of 1986 (the "Code"). The Segment and
the Separate Account are part of C.M. Life.
Due to C.M. Life's current tax status, we do not charge the Segment for C.M.
Life's federal income taxes that may be a result of activity of the Segment.
Periodically, C.M. Life reviews the question of a charge to the Segment for C.M.
Life's federal income taxes. In the future, we may impose a charge for any
federal income taxes paid by C.M. Life resulting from activity of the Segment.
Depending on the method of calculating interest on policy values allocated to
the Guaranteed Principal Account, we may charge for the policy's share of C.M.
Life's federal income taxes that are a result of activity of the GPA.
Under current laws, C.M. Life may have to pay state or local taxes (in addition
to premium taxes). At present, these taxes are not significant. C.M. Life
reserves the right to charge the Separate Account for such taxes, if any,
resulting from activity of the Separate Account.
Annual Reports
MassMutual or C.M. Life maintains the records and accounts relating to the
Separate Account, the Segment and the divisions. Each year within the 30 days
following the Policy Anniversary Date, we will mail you a report showing:
(i) the account value at the beginning of the previous Policy Year,
(ii) all premiums paid during that Year,
(iii) all additions to and deductions from the account value during the Year,
and
(iv) the account value, death benefit, net surrender value and policy debt as
of the last Policy Anniversary Date.
This report may contain additional information if required by any applicable law
or regulation.
Federal Income Tax Considerations
The information in this prospectus is general. It is not an exhaustive
discussion of all tax questions that might arise under the policy. It also is
not intended as tax advice. In addition, we do not know the likelihood that the
current federal income tax laws and Treasury Regulations or the current
interpretations of the Internal Revenue Service ("IRS") will continue. We cannot
make any guarantee regarding the future tax treatment of any policy. But we
reserve the right to make changes to the policy that we determine are needed for
it to continue to qualify as life insurance for tax purposes.
For complete information on any tax issue, we urge you to consult a qualified
tax adviser. No attempt is made in this prospectus to consider any applicable
state or other tax laws.
Other Information 29
<PAGE>
Policy Proceeds, Premiums and Loans. We believe the policy meets the Internal
Revenue Code ("IRC") definition of life insurance. Therefore, the death benefit
under the policy generally is excludible from the Beneficiary's gross income
under the IRC.
Decreases in Face Amount and withdrawals may be taxable depending on the
circumstances. The IRC states that if:
. there is a reduction of future benefits during the first 15 years after a
policy is issued and
. there is a cash distribution as a result of the reduction,
you may be taxed on all or a part of the amount distributed.
If these conditions do not apply, a withdrawal is taxable only to the extent it
exceeds your unrecovered premiums unless the policy is a modified endowment
contract. After 15 years, cash distributions are not subject to federal income
tax, except to the extent they exceed the total amount of premiums paid and not
previously recovered.
If you surrender the policy for its net surrender value, the distribution may be
considered ordinary income for tax purposes. The distribution is ordinary income
to the extent the value received exceeds the premiums paid (or any other amounts
paid for the policy) but not previously recovered. In making this calculation,
the value received is equal to the account value, reduced by any surrender
charges, but not reduced by any outstanding policy debt.
A change of the Owner or the Insured(s), or an exchange or assignment of the
policy, may result in immediate taxable income.
We believe that, under current tax law, any loan received under the policy will
be treated as policy debt of the Owner. The loan will not be considered income
to you unless the policy has become a "modified endowment contract" ("MEC"). If
the policy is a MEC, loans will be fully taxable to the extent of any income in
the policy, and could be subject to a 10% penalty tax.
Interest on policy loans used for personal purposes generally is not tax-
deductible. However, you may deduct this interest if the loan proceeds are used
for "trade or business" or "investment" purposes if you meet certain tax rules.
If the Owner is a business or corporation, additional restrictions may apply.
For example, there are limits on interest deductions available for loans against
a business-owned policy. The corporate alternative minimum tax may apply to any
gain in the policy. This tax also may apply to a portion of the amount by which
death benefits received exceed the policy's net surrender value on the date of
the second death.
The impact of federal income taxes on values under the policy and on the benefit
to you or your Beneficiary depends on C.M. Life's tax status and on the tax
status of the individual concerned. We currently do not make any charge against
the Separate Account for federal income taxes. We may make such a charge
eventually in order to recover the future federal income tax liability of the
Separate Account.
Federal estate and gift taxes, state and local estate taxes, and other taxes
depend on the circumstances of each Owner or Beneficiary.
Investor Control. There are a number of tax benefits associated with variable
life insurance policies. Gains on the net investment experience of the Separate
Account are deferred until accessed or withdrawn, and gains from transfers also
are not taxed. For these benefits to continue, the policy must continue to
qualify as life insurance. In part, federal tax law requires that we, the
insurer, be treated as controlling the investments of the divisions and not you,
the policy Owner.
You may make transfers among divisions of the Separate Account, but you may not
direct the investments each division makes. If the IRS were to conclude that
you, as the investor, have control over these investments, then the policy would
no longer qualify as life insurance and you could be taxed on all the gain
accumulated in the policy.
The IRS has provided some guidance on investor control, but many issues remain
unclear. One such issue is whether a policy Owner can have too much investor
control if the variable life policy offers a large number of investment funds in
which to invest account values. We do not know if the IRS will provide any
further guidance
30 Other Information
<PAGE>
on this issue. We do not know if any such guidance would apply retroactively to
policies already in force.
Consequently, we reserve the right to further limit net premium allocations and
transfers under the policy, so that it will not lose its qualification as life
insurance due to investor control.
Modified Endowment Contracts. If a policy is a modified endowment contract
("MEC"), loans, withdrawals, and other amounts distributed under the policy are
taxable to the extent of any accumulated income in the policy. The collateral
assignment of a MEC is also treated as a taxable distribution.
In general, the amount subject to taxation is the excess of the account value
(both loaned and unloaned), less applicable surrender charges, over the
previously unrecovered premiums paid. Death benefits paid under a MEC, however,
are not taxed any differently than death benefits payable under other life
insurance contracts.
A policy is a MEC if it satisfies the IRC definition of life insurance but fails
the "7-pay test." A policy fails this test if:
. the accumulated amount paid under the contract at any time during the first
seven contract years
exceeds
. the total premiums that would have been payable for a policy providing
guaranteed benefits and requiring the payment of only seven level annual
premiums.
A policy may pass the 7-pay test and still be taxed as a MEC if it is received
in exchange for a MEC.
If certain changes are made to a policy, we will re-test it to determine if it
has become a MEC. For example, if you reduce the death benefit during the first
seven contract years we will retest the policy. If the test shows the policy has
become a MEC, this classification change is effective retroactively to the
Policy Year in which the actual premiums paid exceed the new 7-pay limits.
We will retest whenever there is a "material change" to the policy while it is
in force. If there is a material change, a new 7-pay test period begins at that
time. The term "material change" includes any increases in death benefits.
Since the policy provides for flexible premium payments, we have procedures for
determining whether increases in death benefits or additional premium payments
cause the start of a new seven-year test period or the taxation of distributions
and loans.
If any amount is taxable as a distribution of income under a MEC, it also will
be subject to a 10% penalty tax. There are a few exceptions to the additional
penalty tax for individual Owners. The penalty tax will not apply to
distributions:
(i) made on or after the date the taxpayer attains age 59 1/2; or
(ii) made because the taxpayer became disabled; or
(iii) made as part of a series of substantially equal periodic payments paid
for the life or life expectancy of the taxpayer. These payments must be
made at least annually.
Once a policy fails the 7-pay test, loans and distributions in the year of
failure and in future years are subject to the rules for MECs. In addition,
loans and distributions received in anticipation of failing the 7-pay test are
defined as any loans and distributions made within two years prior to failing
the 7-pay test and are subject to taxation.
Under certain circumstances, a loan, collateral assignment, or other
distribution under a MEC may be taxable even though it exceeds the amount of
income accumulated in the policy. For purposes of determining the amount of
income received from a MEC, the law considers the total of all income in all the
MECs issued within the same calendar year to the same Owner by an insurer and
its affiliates. Loans, collateral assignments, and distributions from any one
MEC are taxable to the extent of this total income.
Qualified Plans. The policy may be used as part of certain tax-qualified and/or
ERISA employee benefit plans. Since the rules concerning the use of a policy
with such plans are complex, you should not use the policy in this way until you
have consulted a competent tax adviser. You may not use the policy as part of an
Individual Retirement Account (IRA).
Your Voting Rights
Other Information 31
<PAGE>
You have the right to instruct us how to vote on questions submitted to the
shareholders of the funds supporting the policy to the extent you have invested
in these divisions.
Your right to instruct us is based on the number of shares of the funds
attributable to your policy. The policy's number of shares of the funds is
determined by dividing the policy's account value held in each division of the
Separate Account by $100. Fractional votes are counted.
You receive proxy material and a form to complete giving us voting instructions.
Shares of the funds held by the Separate Account for which we do not receive
instructions are voted for or against any proposition in the same proportion as
the shares for which we do receive instructions.
Reservation of Rights
We reserve the right to take certain actions. Specifically, we reserve the right
to:
. Create new divisions of the Separate Account;
. Rename divisions;
. Combine any two or more Separate Accounts, Segments or divisions;
. Close divisions to future investments;
. Operate the Separate Account as a unit investment trust under the 1940 Act or
in any other form permitted by law;
. De-register the Separate Account under the 1940 Act in the event such
registration is no longer required; and
. Substitute one or more funds for other funds with similar investment
objectives.
We have reserved all rights to the name C.M. Life Insurance Company or any part
of it. We may allow the Separate Account and other entities to use our name or
part of it, but we also may withdraw this right.
Service Agreement
In addition to acting as an investment manager for the funds underlying the
divisions of the Separate Account, MassMutual performs certain investment and
administrative duties for C.M. Life. MassMutual does this according to a written
agreement. The agreement is renewed automatically each year, unless either party
terminates it. Under this agreement, we pay MassMutual for salary costs and
other services and an amount for indirect costs incurred through C.M. Life's use
of MassMutual's personnel and facilities.
Bonding Arrangement
An insurance company blanket bond is maintained providing $75,000,000 coverage
for officers, employees, general agents, and agents of MassMutual and C.M. Life
(subject to a $350,000 deductible).
Legal Proceedings
We are not currently involved in any legal proceedings that would have a
material impact on the policy.
Experts
We have included the financial statements of C.M. Life, and the Survivorship
Variable Uni-versal Life Segment of C.M. Life Variable Life Separate Account I,
in this prospectus in reliance on the reports of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of that firm as experts in
accounting and auditing.
PricewaterhouseCoopers LLP's report on the statutory financial statements of
C.M. Life includes explanatory paragraphs relating to the use of statutory
accounting practices rather than generally accepted accounting principles.
Effective July 22, 1999, C.M. Life dismissed PricewaterhouseCoopers LLP as its
independent certified public accountants and appointed Deloitte & Touche LLP,
City Place, 185 Asylum Street, Hartford, Conn. 06103, as its independent
certified public accountants. Deloitte & Touche LLP has not audited or reviewed
the financial statements of C.M. Life.
Craig Waddington, FSA, MAAA, Vice President and Actuary for MassMutual, has
examined the illustrations in Appendix D of this prospectus. We filed his
opinion on the illustrations as an exhibit to the registration statement filed
with the SEC.
32 Other Information
<PAGE>
Appendix A
Definition of Terms
Account Value: The sum of the variable account value and the fixed account value
of the policy.
Administrative Office: Our Administrative Office is located at 1295 State
Street, Springfield, Massachusetts 01111-0001.
Attained Age: The Issue Age of an Insured plus the number of completed Policy
Years.
Beneficiary(ies): The person or persons specified by you to receive some or all
of the death benefit at the second death.
Death Benefit: The amount paid following receipt of due proof of the death of
both Insureds. The amount is equal to the benefit provided by the Death Benefit
Option in effect on the date of the second death less any policy debt
outstanding and any due but unpaid premium needed to avoid policy termination.
Death Benefit Option: The policy offers three Death Benefit Options for
determination of the amount of the death benefit. The Death Benefit Option is
elected at time of application and, subject to certain requirements, may be
changed at a later date.
Fixed Account Value: The current account value that is allocated to the
Guaranteed Principal Account.
Good Order: Generally, "in good order" means that we have received everything we
need to process the transaction. For example, we may need certain forms
completed and signed before we can process a transaction. Likewise, we cannot
process certain financial transactions until we have received funds with proper
instructions and authorizations.
Guaranteed Principal Account ("GPA"): Part of our general investment account,
the GPA is a fixed account to and from which you may make allocations and
transfers.
Initial Face Amount: The amount of insurance coverage issued under the policy.
Subject to certain limitations, you may change the Face Amount after issue.
Insureds: The two persons whose lives this policy insures.
Issue Age: The age of an Insured at his or her birthday nearest the Policy Date.
Issue Date: The date on which the policy is actually issued; it is also the date
the suicide and contestability periods begin.
Minimum Death Benefit: The death benefit determined in accordance with the
applicable death benefit compliance test. The applicable test is either the Cash
Value Test or the Guideline Premium Test, as chosen at the time of application.
Monthly Charge Date: The monthly date on which the monthly charges for the
policy are due. The first Monthly Charge Date is the Policy Date, and subsequent
Monthly Charge Dates are on the same day of each succeeding calendar month.
Monthly Charges: The charges assessed against the policy account value each
month.
Net Premium: The premium payment we receive in good order, minus the premium
expense charge.
Net Surrender Value: The amount payable to an Owner upon surrender of the
policy. It is equal to the account value less any surrender charges that apply
and less any policy debt.
Owner: The person or entity that owns the policy.
Policy: The survivorship flexible premium adjustable variable life insurance
policy offered by C.M. Life and described in this prospectus.
Appendix A 33
<PAGE>
Policy Anniversary Date: An anniversary of the Policy Date.
Policy Date: The date shown on the policy that is the starting point for
determining Policy Anniversary Dates, Policy Years, and Monthly Charge Dates.
Policy Debt: All outstanding policy loans plus accrued loan interest.
Policy Year: A twelve-month period commencing with the Policy Date or a Policy
Anniversary Date.
Premium Expense Factor: An amount used to determine the premium expense charges
and sales compensation. For the Initial Face Amount, the Premium Expense Factor
is based on the Issue Ages, genders, and risk classifications of the Insureds.
For each increase in Face Amount, the Premium Expense Factor is based on the
ages, genders and risk classifications of the Insureds on the effective date of
the increase.
Second Death: The death of the surviving Insured.
Separate Account: The policies' designated segment of the "C.M. Life Variable
Life Separate Account I" established by C.M. Life under the laws of Connecticut
and registered as a unit investment trust with the Securities and Exchange
Commission under 1940 Act. The Separate Account is used to receive and invest
net premiums for this policy.
Target Premium: An amount used to determine surrender charges. The Target
Premium is based on the Issue Ages, genders, and risk classifications of the
Insureds. It is lower than or equal to the Premium Expense Factor. Valuation
Date: A date on which the net asset value of the shares of each division of the
Separate Account is determined. Generally, this will be any date on which the
New York Stock Exchange (or its successor) is open for trading.
Variable Account Value: The total of the values of the accumulation units
credited to the policy in each division of the Separate Account multiplied by
your number of units in that division.
We, us, our: Refer to C.M. Life.
Year of Coverage: For the Initial Face Amount, each Policy Year is a year of
coverage. For any increase in the Face Amount, each year of coverage is measured
from the effective date of the increase.
You, your: Refer to the Owner of the policy.
34 Appendix A
<PAGE>
Appendix B
Examples of the Impact of the Account Value and Premiums on the Policy Death
Benefit
Example I - Death Benefit Option 1
================================================================================
Assume the following:
- --------------------------------------------------------------------------------
. Face Amount is $1,000,000
. Account value is $50,000
. Minimum death benefit is $219,000
. No policy debt
- --------------------------------------------------------------------------------
Based on these assumptions,
. the death benefit is $1,000,000.
If the account value increases to $80,000 and the minimum death benefit
increases to $350,400,
. the death benefit remains at $1,000,000.
If the account value decreases to $30,000 and the minimum death benefit
decreases to $131,400,
. the death benefit still remains at $1,000,000.
Example II ~ Death Benefit Option 2
================================================================================
Assume the following:
- --------------------------------------------------------------------------------
. Face Amount is $1,000,000
. Account value is $50,000
. Minimum death benefit is $219,000
. No policy debt
Based on these assumptions,
. the death benefit is $1,050,000 (Face Amount plus account value).
If the account value increases to $80,000 and the minimum death benefit
increases to $350,400,
. the death benefit will increase to $1,080,000.
If the account value decreases to $30,000 and the minimum death benefit
decreases to $131,400,
. the death benefit will decrease to $1,030,000.
Example III ~ Death Benefit Option 3
================================================================================
Assume the following:
- --------------------------------------------------------------------------------
. Face Amount is $1,000,000
. Account value is $50,000
. Minimum death benefit is $219,000
. No policy debt
. Premiums paid under the policy to-date total $40,000
- --------------------------------------------------------------------------------
Based on these assumptions,
. the death benefit is $1,040,000 (Face Amount plus Premiums paid).
If you pay an additional $30,000 of premium and the account value increases to
$80,000 and the minimum death benefit increases to $350,400,
. the death benefit will increase to $1,070,000.
Examples of Death Benefit Option Changes
Example I ~ Change from Option 2 to Option 1
================================================================================
For a change from Option 2 to Option 1, the Face Amount is increased by the
amount of the account value on the effective date of the change.
For example, if the policy has a Face Amount of $500,000 and an account value
of $25,000, the death benefit under Option 2 is equal to the Face Amount plus
the account value, or $525,000. If you change from Option 2 to Option 1, the
death benefit under Option 1 is equal to the Policy Face Amount. Since the
death benefit under the policy does not change as the result of a Death
Benefit Option change, the Face Amount will be increased from $500,000 under
Option 2 to $525,000 under Option 1 and the death benefit after the change
will remain at $525,000.
Appendix B 35
<PAGE>
Example II ~ Change from Option 3 to Option 1
================================================================================
For a change from Option 3 to Option 1, the Face Amount is increased by the
amount of the premiums paid to the effective date of the change.
For example, if a policy has a Face Amount of $500,000, and premium payments
of $12,000 have been made to-date, the death benefit under Option 3 is equal
to the Face Amount plus the premiums paid, or $512,000. If you change from
Option 3 to Option 1, the death benefit under Option 1 is equal to the Face
Amount. Since the death benefit under the policy does not change as the
result of a Death Benefit Option change, the Face Amount will be increased
from $500,000 under Option 3 to $512,000 under Option 1 and the death benefit
after the change will remain at $512,000.
Example III ~ Change from Option 1 to Option 2
================================================================================
For a change from Option 1 to Option 2, the Face Amount will be decreased by the
amount of the account value on the effective date of the change.
For example, if the policy has a Face Amount of $700,000 and an account value
of $25,000, under Option 1 the death benefit is equal to the Face Amount, or
$700,000. If you change from Option 1 to Option 2, the death benefit under
Option 2 is equal to the Face Amount plus the account value. Since the death
benefit does not change as the result of a Death Benefit Option change, the
Face Amount will be decreased by $25,000 to $675,000, and the death benefit
under Option 2 after the change will remain $700,000.
Example IV ~ Change from Option 1 to Option 3
================================================================================
For a change from Option 1 to Option 3, the Face Amount will be decreased by the
amount of the premiums paid to the effective date of the change.
For example, if the policy has a Face Amount of $700,000 and premiums paid
to-date are $30,000, the death benefit under Option 1 is equal to the Face
Amount, or $700,000. If you change from Option 1 to Option 3, the death
benefit under Option 3 is equal to the Face Amount plus the premiums paid to-
date. Since the death benefit under the policy does not change as the result
of a Death Benefit Option change, the Face Amount will be decreased from
$700,000 under Option 1 to $670,000 under Option 3 and the death benefit
after the change will remain at $700,000.
Example V ~ Change from Option 2 to Option 3, or from Option 3 to Option 2
================================================================================
For a change from Option 2 to Option 3 or from Option 3 to Option 2, the Face
Amount is changed (increased or decreased) by the difference between the account
value and the premiums paid to-date.
For example, if the policy has a Face Amount of $1,000,000 and an account
value of $70,000 and premiums paid of $25,000, the death benefit under Option
2 is equal to the Face Amount plus the account value, or $1,070,000. If you
change from Option 2 to Option 3, the death benefit under Option 3 is equal
to the Face Amount plus the premiums paid to-date. Since the death benefit
under the policy does not change as the result of a Death Benefit Option
change, the Face Amount will be increased by the difference between the
account value and the premiums paid, or $45,000, to $1,045,000 under Option
3, maintaining a death benefit of $1,070,000.
A similar type of change would be made for a change from Option 3 to Option 2.
36 Appendix B
<PAGE>
Appendix C
Rates of Return
From time to time, we may report different types of historical performance for
the divisions of the Separate Account available under the policy. We may report
the average annual total returns of the funds over various time periods. These
returns will reflect deductions for investment management fees and fund expenses
and an annual deduction for the mortality and expense risk charge. The returns
do not reflect any policy charges, which, if included, would reduce performance.
On request, we will provide an illustration of account values and net surrender
values for hypothetical Insureds of given ages, genders, risk classifications,
premium levels and Initial Face Amounts. We will base the illustration either on
actual historic fund performance or on a hypothetical investment return. The
hypothetical return will be between 0% and 12%. The net surrender value figures
will assume all fund charges, the mortality and expense risk charge, and all
other policy charges are deducted. The account value figures will assume all
charges except the surrender charge are deducted.
We also may distribute sales literature comparing the divisions of the Separate
Account to established market indices, such as the Standard & Poor's 500 Stock
Index and the Dow Jones Industrial Average. These comparisons may show the
percentage change in the net asset values of the funds or in the accumulation
unit values. We also may make comparisons to the percentage change in values of
other mutual funds with investment objectives similar to those of the divisions
of the Separate Account being compared.
Tables 1 and 2 show the effective annual rates of return and one-year total
returns, respectively, of the funds based on the actual investment performance
(after deduction of investment management fees and direct operating expenses)
underlying each division of the Separate Account. Table 1 shows figures for
periods ended December 31, 1998, while Table 2 shows December 31 one-year total
returns for each year shown. These rates do not reflect:
. the mortality and expense risk charges assessed against the Separate Account
. deductions from premiums or monthly charges assessed against the account
value of the policies
. the policy's surrender charges
Therefore, these rates are not illustrative of how actual investment performance
will affect the benefits under the policy (see, however, Illustration of Death
Benefits, Net Surrender Values, and Accumulated Premiums, Appendix D). The rates
of return shown are not necessarily indicative of future performance. You may
consider these rates of return, however, in assessing the competence and
performance of the investment advisers.
Appendix C 37
<PAGE>
TABLE 1
EFFECTIVE ANNUAL RATES OF RETURN
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Since
Fund Inception 15 Years 10 Years 5 Years 1 Year
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MML Equity 14.84% 15.76% 16.39% 19.66% 16.20%
MML Money Market 6.66% 6.16% 5.41% 4.95% 5.16%
MML Managed Bond 10.24% 10.16% 9.19% 7.07% 8.14%
MML Blend 13.67% -- 13.70% 14.60% 13.56%
MML Equity Index 31.03% -- -- -- 28.22%
MML Small Cap Value Equity (23.88%) -- -- -- (23.88%)*
MML Growth Equity -- -- -- -- --
MML Small Cap Growth Equity -- -- -- -- --
Oppenheimer Aggressive Growth++ 15.07% -- 16.12% 13.06% 12.36%
Oppenheimer Global Securities 12.49% -- -- 9.67% 14.11%
Oppenheimer Capital Appreciation+ 16.03% -- 16.85% 22.10% 24.00%
Oppenheimer Strategic Bond 6.79% -- -- 6.83% 2.90%
Oppenheimer Main Street Growth & Income 27.00% -- -- -- 4.70%
Oppenheimer High Income 12.26% -- 12.71% 8.62% 0.31%
Oppenheimer Bond 9.66% -- -- -- 6.80%
VIP II ContrafundO Portfolio 28.62% -- -- -- 29.98%
T. Rowe Price Mid-Cap Growth Portfolio 20.43% -- -- -- 22.08%
American Century's VP Income & Growth Fund 30.68% -- -- -- 26.87%
Bankers Trust's Small Cap Index Fund 2.07% -- -- -- (2.18%)
Goldman Sachs Capital Growth Fund 13.40% -- -- -- --
Janus Aspen Capital Appreciation Portfolio 51.65% -- -- -- 58.11%
Janus Aspen Worldwide Growth Portfolio 24.06% -- -- 21.32% 28.92%
Templeton International 14.10% -- -- 11.74% 9.08%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
The figures in this Table do not reflect any charges at the Separate Account or
Policy level.
*Since inception.
Dates of inception:
MML Equity Fund - 9/15/71
MML Money Market Fund - 12/16/81
MML Managed Bond Fund - 12/16/81
MML Blend Fund - 2/3/84
MML Equity Index Fund - 5/1/97
MML Small Cap Value Equity Fund - 6/1/98
MML Growth Equity Fund - 5/3/99
MML Small Cap Growth Equity Fund - 5/3/99
Oppenheimer Capital Appreciation Fund/VA - 4/3/85
Oppenheimer Aggressive Growth Fund/VA - 8/15/86
Oppenheimer Global Securities Fund/VA - 11/12/90
Oppenheimer Strategic Bond Fund/VA - 5/3/93
Oppenheimer Main Street Growth and Income - 7/5/95
Oppenheimer High Income Fund/VA - 4/30/86
Oppenheimer Bond Fund/VA - 4/3/85
VIP II Contrafund(R) Portfolio - 1/3/95
T. Rowe Price Mid-Cap Growth Portfolio - 12/31/96
American Century's VP Income & Growth Fund - 10/30/97
Bankers Trust's Small Cap Index Fund - 8/25/97
Goldman Sachs Capital Growth Fund - 5/1/98
Janus Aspen Capital Appreciation Portfolio - 5/1/97
Janus Aspen Worldwide Growth Portfolio - 9/13/93
Templeton International Fund - 5/1/92
+ Prior to May 1, 1999, this fund was named Oppenheimer Growth Fund
++ Prior to May 1, 1998, this fund was named Oppenheimer Capital Appreciation
Fund.
38 Appendix C
<PAGE>
TABLE 2
ONE YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
MML MML
MML MML MML Small Cap MML Small Cap
Year MML Managed MML Money Equity Value Growth Growth
Ended Equity** Bond Blend Market Index Equity Equity Equity
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 16.20% 8.14% 13.56% 5.16% 28.22% (23.88%)* -- --
1997 28.59% 9.91% 20.89% 5.18% 21.93%* -- -- --
1996 20.25% 3.25% 13.95% 5.01% -- -- -- --
1995 31.13% 19.14% 23.28% 5.58% -- -- -- --
1994 4.10% (3.76%) 2.48% 3.84% -- -- -- --
1993 9.52% 11.81% 9.70% 2.75% -- -- -- --
1992 10.48% 7.31% 9.36% 3.48% -- -- -- --
1991 25.56% 16.66% 24.00% 6.01% -- -- -- --
1990 (0.51%) 8.38% 2.37% 8.12% -- -- -- --
1989 23.04% 12.83% 19.96% 9.16% -- -- -- --
1988 16.68% 7.13% 13.40% 7.39% -- -- -- --
1987 2.10% 2.60% 3.12% 6.49% -- -- -- --
1986 20.15% 14.46% 18.30% 6.60% -- -- -- --
1985 30.54% 19.94% 24.88% 8.03% -- -- -- --
1984 5.40% 11.69% 8.24%* 10.39% -- -- -- --
1983 22.85% 7.26% -- 8.97% -- -- -- --
1982 25.67% 22.79%* -- 11.12%* -- -- -- --
- ------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Oppenheimer
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Main Street
Year Capital Aggressive Global Strategic Growth Oppenheimer Oppenheimer
Ended Appreciation+ Growth++ Securities Bond Income High Income Bond
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 24.00% 12.36% 14.11% 2.90% 4.70% 0.31% 6.80%
1997 26.69% 11.67% 22.42% 8.71% 32.48% 12.22% 9.26%
1996 25.20% 20.23% 17.80% 12.07% 32.51% 15.25% 4.80%
1995 36.66% 32.52% 2.24% 15.33% -- 20.37% 17.00%
1994 0.97% (7.59%) (5.72%) (3.78%) -- (3.18%) (1.94%)
1993 7.25% 27.32% 70.32% 4.25%* -- 26.34% 13.04%
1992 14.53% 15.42% (7.11%) -- -- 17.92% 6.50%
1991 25.54% 54.72% 3.39% -- -- 33.91% 17.63%
1990 (8.21%) (16.82%) 0.40%* -- -- 4.65% 7.92%
1989 23.59% 27.57% -- -- -- 4.84% 13.32%
1988 22.09% 13.41% -- -- -- -- --
1987 3.31% 14.34% -- -- -- -- --
1986 17.76% (1.65%)* -- -- -- -- --
1985 9.50%* -- -- -- -- -- --
1984 -- -- -- -- -- -- --
1983 -- -- -- -- -- -- --
1982 -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
The figures in this Table do not reflect any charges at the Separate Account or
Policy level.
*Since inception.
** Performance for the MML Equity Fund for years 1981 through 1974: 6.67%,
27.62%, 19.54%, 3.71%, (0.52%), 24.77%, 32.85%, (17.61%). Performance for the
MML Equity Fund prior to 1974 is not available.
+ Prior to May 1, 1999, this fund was named Oppenheimer Growth Fund
++ Prior to May 1, 1998, this fund was named Oppenheimer Capital Appreciation
Fund.
Appendix C 39
<PAGE>
TABLE 2 (continued)
ONE YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
T. Rowe Bankers Goldman Janus
Year Price Mid VP Income Trust Sachs Janus Aspen Aspen
Ended VIP II Cap & Growth Small Cap Capital Capital Worldwide Templeton
Contrafund Growth Fund Index Fund Growth Appreciation Growth International
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 29.98% 22.08% 26.87% (2.18%) 13.40% 38.11% 28.92% 9.08%
1997 24.14% 18.80%* 7.8%* -- -- -- 22.15% 13.73%
1996 21.22% -- -- -- -- -- 29.04% 24.04%
1995 39.72%* -- -- -- -- -- 27.37% 15.78%
1994 -- -- -- -- -- -- 1.53% (2.22%)
1993 -- -- -- -- -- -- -- 47.28%
1992 -- -- -- -- -- -- -- --
1991 -- -- -- -- -- -- -- --
1990 -- -- -- -- -- -- -- --
1989 -- -- -- -- -- -- -- --
1988 -- -- -- -- -- -- -- --
1987 -- -- -- -- -- -- -- --
1986 -- -- -- -- -- -- -- --
1985 -- -- -- -- -- -- -- --
1984 -- -- -- -- -- -- -- --
1983 -- -- -- -- -- -- -- --
1982 -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
The figures in this Table do not reflect any charges at the Separate Account or
Policy level.
*Since inception.
Dates of inception:
MML Equity Fund - 9/15/71
MML Money Market Fund - 12/16/81
MML Managed Bond Fund - 12/16/81
MML Blend Fund - 2/3/84
MML Equity Index Fund - 5/1/97
MML Small Cap Value Equity Fund - 6/1/98
MML Growth Equity Fund - 5/3/99
MML Small Cap Growth Equity Fund - 5/3/99
Oppenheimer Capital Appreciation Fund/VA - 4/3/85
Oppenheimer Aggressive Growth Fund/VA - 8/15/86
Oppenheimer Global Securities Fund/VA - 11/12/90
Oppenheimer Strategic Bond Fund/VA - 5/3/93
Oppenheimer Main Street Growth and Income - 7/5/95
Oppenheimer High Income Fund/VA - 4/30/86
Oppenheimer Bond Fund/VA - 4/3/85
VIP II Contrafund(R) Portfolio - 1/3/95
T. Rowe Price Mid-Cap Growth Portfolio - 12/31/96
American Century's VP Income & Growth Fund - 10/30/97
Bankers Trust's Small Cap Index Fund - 8/25/97
Goldman Sachs Capital Growth Fund - 5/1/98
Janus Aspen Capital Appreciation Portfolio - 5/1/97 Janus Aspen
Worldwide Growth Portfolio - 9/13/93
Templeton International Fund - 5/1/92
40 Appendix C
<PAGE>
Appendix D
Illustration of Death Benefits, Net Surrender Values, and Accumulated
Premiums
The following tables illustrate the way in which a policy operates. They show
how the death benefit and net surrender value could vary over an extended period
of time assuming the funds experience hypothetical gross rates of investment
return (i.e., investment income and capital gains and losses, realized or
unrealized), equal to constant gross annual rates of 0%, 6%, and 12%. The tables
are based on annual premium payments of $7,500 for a combination of an Ultra
Preferred Non-Tobacco Male age 35 and an Ultra Preferred Non-Tobacco Female age
35. Ultra Preferred Non-Tobacco is currently our best risk classification.
Separate tables are shown for the current and guaranteed schedules of charges.
These tables will assist in the comparison of death benefits and net surrender
values for the policy with those of other variable life policies.
The death benefits and net surrender values for a policy would be different from
the amounts shown if:
. the rates of return averaged 0%, 6%, and 12% over a period of years, but
varied above and below that average in individual Policy Years
. any policy loan were made during the period of time illustrated
. the rates of return for all funds averaged 0%, 6%, and 12% but varied above
or below that average for particular funds.
The death benefits and net surrender values shown in Tables 1, 2, 3, 7, 8, and 9
reflect the following current charges:
. administrative charges of $12 per month per policy in Policy Years 1-10,
and $8 per month in Policy Years 11 and beyond.
. face amount charges of $0.07 per month per $1,000 of Face Amount in
coverage years 1-10.
. insurance charges based on the current rates we are charging for Ultra
Preferred Non-Tobacco, fully underwritten risks.
. mortality and expense risk charges of 0.25% on an annual basis of the daily
net asset value of the Separate Account in all Policy Years.
. fund level expenses of 0.73% on an annual basis of the net asset value of
the Separate Account. These expenses represent the unweighted average of
all fund expenses.
The death benefits and net surrender values shown in Tables 4, 5, 6, 10, 11, and
12 reflect the following guaranteed maximum charges as well as the current fund
level expenses.
. administrative charges equal to $12 per month per policy in all years.
. face amount charge of $0.08 per month per $1,000 of Face Amount in coverage
years 1-10.
. insurance charges based on the Commissioners 1980 Standard Ordinary
Nonsmoker Mortality Table.
. mortality and expense risk charges equal to 0.60% on an annual basis of the
daily net asset value of the Separate Account in all years.
Net surrender values shown in the tables reflect the deduction of surrender
charges in the first 14 Policy Years. The surrender charge in the first five
Years is the Target Premium or $45 per $1,000 of Face Amount if less. In each of
Years six through 14, the surrender charge is equal to the surrender charge in
the preceding year reduced by 10% of the surrender charge in the first year.
Taking the current mortality and expense risk charge and the fund level expenses
into account, the gross rates of 0%, 6%, and 12% are (0.97%), 4.97%, and 10.91%,
respectively, on a net basis.
Appendix D 41
<PAGE>
TABLE 1
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 1 $1 million Initial Face Amount
Current Schedule of Charges Guideline Premium Test
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
- --------------------------- ------------------------------------------- ------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- --------------------------- ------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $7,875 $1,000,000 $1,000,000 $1,000,000 $2,042 $2,425 $2,810
2 $16,144 $1,000,000 $1,000,000 $1,000,000 $7,925 $9,065 $10,251
3 $24,826 $1,000,000 $1,000,000 $1,000,000 $13,750 $16,033 $18,503
4 $33,942 $1,000,000 $1,000,000 $1,000,000 $19,518 $23,346 $27,654
5 $43,514 $1,000,000 $1,000,000 $1,000,000 $25,227 $31,021 $37,802
6 $53,565 $1,000,000 $1,000,000 $1,000,000 $31,270 $39,466 $49,446
7 $64,118 $1,000,000 $1,000,000 $1,000,000 $37,257 $48,310 $62,317
8 $75,199 $1,000,000 $1,000,000 $1,000,000 $43,187 $57,571 $76,546
9 $86,834 $1,000,000 $1,000,000 $1,000,000 $49,061 $67,271 $92,284
10 $99,051 $1,000,000 $1,000,000 $1,000,000 $54,878 $77,430 $109,692
15 $169,931 $1,000,000 $1,000,000 $1,000,000 $87,447 $140,972 $234,751
20 $260,394 $1,000,000 $1,000,000 $1,000,000 $116,404 $219,256 $441,179
25 $375,851 $1,000,000 $1,000,000 $1,055,017 $143,302 $318,396 $787,326
30 $523,206 $1,000,000 $1,000,000 $1,668,633 $167,363 $443,564 $1,367,732
35 $711,272 $1,000,000 $1,000,000 $2,714,028 $186,702 $601,170 $2,339,679
40 $951,298 $1,000,000 $1,000,000 $4,244,209 $196,881 $800,097 $3,966,551
45 $1,257,639 $1,000,000 $1,108,022 $7,024,435 $186,339 $1,055,260 $6,689,938
50 $1,648,615 $1,000,000 $1,446,886 $11,780,554 $127,241 $1,377,986 $11,219,575
- --------------------------- ------------------------------------------- ------------------------------------------
<CAPTION>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
--------------------------------------------------------------
End of
Policy Year 0% 6% 12%
--------------------------------------------------------------
<S> <C> <C> <C>
1 $5,942 $6,325 $6,710
2 $11,825 $12,965 $14,151
3 $17,650 $19,933 $22,403
4 $23,418 $27,246 $31,554
5 $29,127 $34,921 $41,702
6 $34,780 $42,976 $52,956
7 $40,377 $51,430 $65,437
8 $45,917 $60,301 $79,276
9 $51,401 $69,611 $94,624
10 $56,828 $79,380 $111,642
15 $87,447 $140,972 $234,751
--------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
42 Appendix D
<PAGE>
TABLE 2
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 2 $1 million Initial Face Amount
Current Schedule of Charges Guideline Premium Test
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
------------------------------------------- -------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ------------------------------ ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $7,875 $1,005,942 $1,006,325 $1,006,710 $2,042 $2,425 $2,810
2 $16,144 $1,011,825 $1,012,965 $1,014,151 $7,925 $9,065 $10,251
3 $24,826 $1,017,650 $1,019,933 $1,022,403 $13,750 $16,033 $18,503
4 $33,942 $1,023,417 $1,027,246 $1,031,554 $19,517 $23,346 $27,654
5 $43,514 $1,029,127 $1,034,920 $1,041,702 $25,227 $31,020 $37,802
6 $53,565 $1,034,780 $1,042,975 $1,052,956 $31,270 $39,465 $49,446
7 $64,118 $1,040,377 $1,051,429 $1,065,436 $37,257 $48,309 $62,316
8 $75,199 $1,045,916 $1,060,300 $1,079,275 $43,186 $57,570 $76,545
9 $86,834 $1,051,399 $1,069,609 $1,094,620 $49,059 $67,269 $92,280
10 $99,051 $1,056,826 $1,079,377 $1,111,637 $54,876 $77,427 $109,687
15 $169,931 $1,087,434 $1,140,949 $1,234,711 $87,434 $140,949 $234,711
20 $260,394 $1,116,352 $1,219,149 $1,440,951 $116,352 $219,149 $440,951
25 $375,851 $1,143,094 $1,317,896 $1,786,029 $143,094 $317,896 $786,029
30 $523,206 $1,166,675 $1,441,582 $2,362,680 $166,675 $441,582 $1,362,680
35 $711,272 $1,184,678 $1,594,121 $3,324,626 $184,678 $594,121 $2,324,626
40 $951,298 $1,191,423 $1,776,662 $4,925,526 $191,423 $776,662 $3,925,526
45 $1,257,639 $1,172,639 $1,980,625 $7,579,912 $172,639 $980,625 $6,579,912
50 $1,648,615 $1,097,917 $2,175,754 $11,962,190 $ 97,917 $1,175,754 $10,962,190
- ------------------------------ ------------------------------------------- -------------------------------------------
<CAPTION>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
------------------------------------------------------------------
End of
Policy Year 0% 6% 12%
------------------------------------------------------------------
<S> <C> <C> <C>
1 $5,942 $6,325 $6,710
2 $11,825 $12,965 $14,151
3 $17,650 $19,933 $22,403
4 $23,417 $27,246 $31,554
5 $29,127 $34,920 $41,702
6 $34,780 $42,975 $52,956
7 $40,377 $51,429 $65,436
8 $45,916 $60,300 $79,275
9 $51,399 $69,609 $94,620
10 $56,826 $79,377 $111,637
15 $87,434 $140,949 $234,711
------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
Appendix D 43
<PAGE>
TABLE 3
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 3 $1 million Initial Face Amount
Current Schedule of Charges Guideline Premium Test
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
- ----------------------------- -------------------------------------------- -------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ----------------------------- -------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $7,875 $1,007,500 $1,007,500 $1,007,500 $2,042 $2,425 $2,810
2 $16,144 $1,015,000 $1,015,000 $1,015,000 $7,925 $9,065 $10,251
3 $24,826 $1,022,500 $1,022,500 $1,022,500 $13,750 $16,033 $18,503
4 $33,942 $1,030,000 $1,030,000 $1,030,000 $19,517 $23,346 $27,654
5 $43,514 $1,037,500 $1,037,500 $1,037,500 $25,227 $31,020 $37,802
6 $53,565 $1,045,000 $1,045,000 $1,045,000 $31,270 $39,465 $49,446
7 $64,118 $1,052,500 $1,052,500 $1,052,500 $37,256 $48,309 $62,316
8 $75,199 $1,060,000 $1,060,000 $1,060,000 $43,186 $57,570 $76,545
9 $86,834 $1,067,500 $1,067,500 $1,067,500 $49,059 $67,269 $92,281
10 $99,051 $1,075,000 $1,075,000 $1,075,000 $54,875 $77,427 $109,688
15 $169,931 $1,112,500 $1,112,500 $1,112,500 $87,430 $140,952 $234,727
20 $260,394 $1,150,000 $1,150,000 $1,150,000 $116,337 $219,173 $441,073
25 $375,851 $1,187,500 $1,187,500 $1,187,500 $143,034 $318,060 $786,891
30 $523,206 $1,225,000 $1,225,000 $1,667,635 $166,457 $442,397 $1,366,914
35 $711,272 $1,262,500 $1,262,500 $2,712,446 $183,951 $597,534 $2,338,315
40 $951,298 $1,300,000 $1,300,000 $4,241,782 $189,017 $789,473 $3,964,282
45 $1,257,639 $1,337,500 $1,337,500 $7,020,484 $164,188 $1,026,063 $6,686,175
50 $1,648,615 $1,375,000 $1,393,802 $11,774,041 $ 65,801 $1,327,430 $11,213,372
- ----------------------------- -------------------------------------------- -------------------------------------------
<CAPTION>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
-----------------------------------------------------------------
End of
Policy Year 0% 6% 12%
-----------------------------------------------------------------
<S> <C> <C> <C>
1 $5,942 $6,325 $6,710
2 $11,825 $12,965 $14,151
3 $17,650 $19,933 $22,403
4 $23,417 $27,246 $31,554
5 $29,127 $34,920 $41,702
6 $34,780 $42,975 $52,956
7 $40,376 $51,429 $65,436
8 $45,916 $60,300 $79,275
9 $51,399 $69,609 $94,621
10 $56,825 $79,377 $111,638
15 $87,430 $140,952 $234,727
-----------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
44 Appendix D
<PAGE>
TABLE 4
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 1 $1 million Initial Face Amount
Guaranteed Schedule of Mortality and Expense Charges and Guideline Premium Test
Current Fund Level Charges
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
--------------------------------------------- --------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ---------------------------- --------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $7,875 $1,000,000 $1,000,000 $1,000,000 $1,751 $2,121 $2,491
2 $16,144 $1,000,000 $1,000,000 $1,000,000 $7,323 $8,414 $9,550
3 $24,826 $1,000,000 $1,000,000 $1,000,000 $12,815 $14,990 $17,344
4 $33,942 $1,000,000 $1,000,000 $1,000,000 $18,227 $21,861 $25,952
5 $43,514 $1,000,000 $1,000,000 $1,000,000 $23,559 $29,039 $35,455
6 $53,565 $1,000,000 $1,000,000 $1,000,000 $29,200 $36,927 $46,338
7 $64,118 $1,000,000 $1,000,000 $1,000,000 $34,758 $45,146 $58,311
8 $75,199 $1,000,000 $1,000,000 $1,000,000 $40,233 $53,710 $71,487
9 $86,834 $1,000,000 $1,000,000 $1,000,000 $45,623 $62,632 $85,992
10 $99,051 $1,000,000 $1,000,000 $1,000,000 $50,925 $71,925 $101,961
15 $169,931 $1,000,000 $1,000,000 $1,000,000 $80,683 $129,862 $215,932
20 $260,394 $1,000,000 $1,000,000 $1,000,000 $105,339 $198,586 $399,484
25 $375,851 $1,000,000 $1,000,000 $1,000,000 $125,315 $281,785 $700,876
30 $523,206 $1,000,000 $1,000,000 $1,460,439 $137,189 $380,585 $1,197,081
35 $711,272 $1,000,000 $1,000,000 $2,329,056 $131,673 $493,759 $2,007,807
40 $951,298 $1,000,000 $1,000,000 $3,563,630 $ 87,906 $618,955 $3,330,495
45 $1,257,639 $0 $1,000,000 $5,765,882 $0 $752,923 $5,491,317
50 $1,648,615 $0 $1,000,000 $9,390,604 $0 $915,774 $8,943,432
- ---------------------------- --------------------------------------------- --------------------------------------------
<CAPTION>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
--------------------------------------------------------------
End of
Policy Year 0% 6% 12%
--------------------------------------------------------------
<S> <C> <C> <C>
1 $5,651 $6,021 $6,391
2 $11,223 $12,314 $13,450
3 $16,715 $18,890 $21,244
4 $22,127 $25,761 $29,852
5 $27,459 $32,939 $39,355
6 $32,710 $40,437 $49,848
7 $37,878 $48,266 $61,431
8 $42,963 $56,440 $74,217
9 $47,963 $64,972 $88,332
10 $52,875 $73,875 $103,911
15 $80,683 $129,862 $215,932
--------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
Appendix D 45
<PAGE>
TABLE 5
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 2 $1 million Initial Face Amount
Guaranteed Schedule of Mortality and Expense Charges and Guideline Premium Test
Current Fund Level Charges
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
---------------------------------------------- ----------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ---------------------------- ---------------------------------------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $7,875 $1,005,651 $1,006,021 $1,006,391 $1,751 $2,121 $2,491
2 $16,144 $1,011,223 $1,012,314 $1,013,450 $7,323 $8,414 $9,550
3 $24,826 $1,016,715 $1,018,889 $1,021,244 $12,815 $14,989 $17,344
4 $33,942 $1,022,126 $1,025,760 $1,029,850 $18,226 $21,860 $25,950
5 $43,514 $1,027,457 $1,032,937 $1,039,352 $23,557 $29,037 $35,452
6 $53,565 $1,032,707 $1,040,433 $1,049,843 $29,197 $36,923 $46,333
7 $64,118 $1,037,873 $1,048,259 $1,061,422 $34,753 $45,139 $58,302
8 $75,199 $1,042,955 $1,056,428 $1,074,202 $40,225 $53,698 $71,472
9 $86,834 $1,047,950 $1,064,954 $1,088,307 $45,610 $62,614 $85,967
10 $99,051 $1,052,857 $1,073,848 $1,103,871 $50,907 $71,898 $101,921
15 $169,931 $1,080,590 $1,129,701 $1,215,648 $80,590 $129,701 $215,648
20 $260,394 $1,104,997 $1,197,884 $1,397,984 $104,997 $197,884 $397,984
25 $375,851 $1,124,249 $1,279,174 $1,694,021 $124,249 $279,174 $694,021
30 $523,206 $1,134,252 $1,371,856 $2,171,886 $134,252 $371,856 $1,171,886
35 $711,272 $1,124,234 $1,465,828 $2,934,869 $124,234 $465,828 $1,934,869
40 $951,298 $1,072,136 $1,534,907 $4,138,201 $ 72,136 $534,907 $3,138,201
45 $1,257,639 $0 $1,510,014 $5,996,932 $0 $510,014 $4,996,932
50 $1,648,615 $0 $1,267,615 $8,825,609 $0 $267,615 $7,825,609
- ---------------------------- ---------------------------------------------- ----------------------------------------------
<CAPTION>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
--------------------------------------------------------------
End of
Policy Year 0% 6% 12%
--------------------------------------------------------------
1 $5,651 $6,021 $6,391
2 $11,223 $12,314 $13,450
3 $16,715 $18,889 $21,244
4 $22,126 $25,760 $29,850
5 $27,457 $32,937 $39,352
6 $32,707 $40,433 $49,843
7 $37,873 $48,259 $61,422
8 $42,955 $56,428 $74,202
9 $47,950 $64,954 $88,307
10 $52,857 $73,848 $103,871
15 $80,590 $129,701 $215,648
--------------------------------------------------------------
</TABLE>
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
46 Appendix D
<PAGE>
TABLE 6
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 3 $1 million Initial Face Amount
Guaranteed Schedule of Mortality and Expense Charges and Guideline Premium Test
Current Fund Level Charges
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
- ----------------------------- --------------------------------------------- ---------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ----------------------------- --------------------------------------------- ---------------------------------------------
1 $7,875 $1,007,500 $1,007,500 $1,007,500 $1,751 $2,121 $2,491
2 $16,144 $1,015,000 $1,015,000 $1,015,000 $7,323 $8,414 $9,550
3 $24,826 $1,022,500 $1,022,500 $1,022,500 $12,814 $14,989 $17,344
4 $33,942 $1,030,000 $1,030,000 $1,030,000 $18,226 $21,860 $25,950
5 $43,514 $1,037,500 $1,037,500 $1,037,500 $23,557 $29,036 $35,452
6 $53,565 $1,045,000 $1,045,000 $1,045,000 $29,196 $36,922 $46,333
7 $64,118 $1,052,500 $1,052,500 $1,052,500 $34,751 $45,138 $58,303
8 $75,199 $1,060,000 $1,060,000 $1,060,000 $40,222 $53,697 $71,473
9 $86,834 $1,067,500 $1,067,500 $1,067,500 $45,605 $62,612 $85,970
10 $99,051 $1,075,000 $1,075,000 $1,075,000 $50,900 $71,896 $101,928
15 $169,931 $1,112,500 $1,112,500 $1,112,500 $80,554 $129,707 $215,743
20 $260,394 $1,150,000 $1,150,000 $1,150,000 $104,861 $197,988 $398,715
25 $375,851 $1,187,500 $1,187,500 $1,187,500 $123,780 $279,799 $698,204
30 $523,206 $1,225,000 $1,225,000 $1,453,424 $132,690 $374,612 $1,191,331
35 $711,272 $1,262,500 $1,262,500 $2,318,157 $118,778 $476,307 $1,998,411
40 $951,298 $1,300,000 $1,300,000 $3,547,250 $52,054 $569,365 $3,315,187
45 $1,257,639 $0 $1,337,500 $5,739,745 $0 $608,158 $5,466,424
50 $1,648,615 $0 $1,375,000 $9,348,548 $0 $474,240 $8,903,379
- ----------------------------- --------------------------------------------- ---------------------------------------------
<CAPTION>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
---------------------------------------------------------------
End of
Policy Year 0% 6% 12%
---------------------------------------------------------------
<S> <C> <C> <C>
1 $5,651 $6,021 $6,391
2 $11,223 $12,314 $13,450
3 $16,714 $18,889 $21,244
4 $22,126 $25,760 $29,850
5 $27,457 $32,936 $39,352
6 $32,706 $40,432 $49,843
7 $37,871 $48,258 $61,423
8 $42,952 $56,427 $74,203
9 $47,945 $64,952 $88,310
10 $52,850 $73,846 $103,878
15 $80,554 $129,707 $215,743
---------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
Appendix D 47
<PAGE>
TABLE 7
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 1 $1 million Initial Face Amount
Current Schedule of Charges Cash Value Test
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
--------------------------------------- ---------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ----------------------------- --------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 7,875 $1,000,000 $1,000,000 $ 1,000,000 $ 2,042 $ 2,425 $ 2,810
2 $ 16,144 $1,000,000 $1,000,000 $ 1,000,000 $ 7,925 $ 9,065 $ 10,251
3 $ 24,826 $1,000,000 $1,000,000 $ 1,000,000 $ 13,750 $ 16,033 $ 18,503
4 $ 33,942 $1,000,000 $1,000,000 $ 1,000,000 $ 19,518 $ 23,346 $ 27,654
5 $ 43,514 $1,000,000 $1,000,000 $ 1,000,000 $ 25,227 $ 31,021 $ 37,802
6 $ 53,565 $1,000,000 $1,000,000 $ 1,000,000 $ 31,270 $ 39,466 $ 49,446
7 $ 64,118 $1,000,000 $1,000,000 $ 1,000,000 $ 37,257 $ 48,310 $ 62,317
8 $ 75,199 $1,000,000 $1,000,000 $ 1,000,000 $ 43,187 $ 57,571 $ 76,546
9 $ 86,834 $1,000,000 $1,000,000 $ 1,000,000 $ 49,061 $ 67,271 $ 92,284
10 $ 99,051 $1,000,000 $1,000,000 $ 1,000,000 $ 54,878 $ 77,430 $ 109,692
15 $ 169,931 $1,000,000 $1,000,000 $ 1,000,000 $ 87,447 $ 140,972 $ 234,751
20 $ 260,394 $1,000,000 $1,000,000 $ 1,389,498 $116,404 $ 219,256 $ 441,111
25 $ 375,851 $1,000,000 $1,000,000 $ 2,051,892 $143,302 $ 318,396 $ 786,166
30 $ 523,206 $1,000,000 $1,000,000 $ 2,981,266 $167,363 $ 443,564 $ 1,361,308
35 $ 711,272 $1,000,000 $1,111,542 $ 4,283,086 $186,702 $ 600,834 $ 2,315,182
40 $ 951,298 $1,000,000 $1,265,653 $ 6,177,763 $196,881 $ 796,008 $ 3,885,385
45 $1,257,639 $1,000,000 $1,447,175 $ 9,013,378 $186,339 $1,033,696 $ 6,438,127
50 $1,648,615 $1,000,000 $1,671,110 $13,358,159 $127,241 $1,315,835 $10,518,235
- ----------------------------- --------------------------------------------- --------------------------------------------
</TABLE>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
- ----------------------------------------------------------------
End of
Policy Year 0% 6% 12%
- ----------------------------------------------------------------
1 $ 5,942 $ 6,325 $ 6,710
2 $11,825 $ 12,965 $ 14,151
3 $17,650 $ 19,933 $ 22,403
4 $23,418 $ 27,246 $ 31,554
5 $29,127 $ 34,921 $ 41,702
6 $34,780 $ 42,976 $ 52,956
7 $40,377 $ 51,430 $ 65,437
8 $45,917 $ 60,301 $ 79,276
9 $51,401 $ 69,611 $ 94,624
10 $56,828 $ 79,380 $111,642
15 $87,447 $140,972 $234,751
- ----------------------------------------------------------------
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
48 |Appendix D
<PAGE>
TABLE 8
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 2 $1 million Initial Face Amount
Current Schedule of Charges Cash Value Test
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
--------------------------------------- ---------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ---------------------------- --------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 7,875 $1,005,942 $1,006,325 $ 1,006,710 $ 2,042 $ 2,425 $ 2,810
2 $ 16,144 $1,011,825 $1,012,965 $ 1,014,151 $ 7,925 $ 9,065 $ 10,251
3 $ 24,826 $1,017,650 $1,019,933 $ 1,022,403 $ 13,750 $ 16,033 $ 18,503
4 $ 33,942 $1,023,417 $1,027,246 $ 1,031,554 $ 19,517 $ 23,346 $ 27,654
5 $ 43,514 $1,029,127 $1,034,920 $ 1,041,702 $ 25,227 $ 31,020 $ 37,802
6 $ 53,565 $1,034,780 $1,042,975 $ 1,052,956 $ 31,270 $ 39,465 $ 49,446
7 $ 64,118 $1,040,377 $1,051,429 $ 1,065,436 $ 37,257 $ 48,309 $ 62,316
8 $ 75,199 $1,045,916 $1,060,300 $ 1,079,275 $ 43,186 $ 57,570 $ 76,545
9 $ 86,834 $1,051,399 $1,069,609 $ 1,094,620 $ 49,059 $ 67,269 $ 92,280
10 $ 99,051 $1,056,826 $1,079,377 $ 1,111,637 $ 54,876 $ 77,427 $ 109,687
15 $ 169,931 $1,087,434 $1,140,949 $ 1,234,711 $ 87,434 $ 140,949 $ 234,711
20 $ 260,394 $1,116,352 $1,219,149 $ 1,440,951 $116,352 $ 219,149 $ 440,951
25 $ 375,851 $1,143,094 $1,317,896 $ 2,051,162 $143,094 $ 317,896 $ 785,886
30 $ 523,206 $1,166,675 $1,441,582 $ 2,980,241 $166,675 $ 441,582 $ 1,360,841
35 $ 711,272 $1,184,678 $1,594,121 $ 4,281,644 $184,678 $ 594,121 $ 2,314,402
40 $ 951,298 $1,191,423 $1,776,662 $ 6,175,708 $191,423 $ 776,662 $ 3,884,093
45 $1,257,639 $1,172,639 $1,980,625 $ 9,010,401 $172,639 $ 980,625 $ 6,436,001
50 $1,648,615 $1,097,917 $2,175,754 $13,353,767 $ 97,917 $1,175,754 $10,514,777
- ---------------------------- --------------------------------------------- -------------------------------------------
</TABLE>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
- ----------------------------------------------------------------
End of
Policy Year 0% 6% 12%
- ----------------------------------------------------------------
1 $ 5,942 $ 6,325 $ 6,710
2 $11,825 $ 12,965 $ 14,151
3 $17,650 $ 19,933 $ 22,403
4 $23,417 $ 27,246 $ 31,554
5 $29,127 $ 34,920 $ 41,702
6 $34,780 $ 42,975 $ 52,956
7 $40,377 $ 51,429 $ 65,436
8 $45,916 $ 60,300 $ 79,275
9 $51,399 $ 69,609 $ 94,620
10 $56,826 $ 79,377 $111,637
15 $87,434 $140,949 $234,711
- ----------------------------------------------------------------
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
Appendix D| 49
<PAGE>
TABLE 9
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 3 $1 million Initial Face Amount
Current Schedule of Charges Cash Value Test
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
--------------------------------------- ---------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ---------------------------- --------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 7,875 $1,007,500 $1,007,500 $ 1,007,500 $ 2,042 $ 2,425 $ 2,810
2 $ 16,144 $1,015,000 $1,015,000 $ 1,015,000 $ 7,925 $ 9,065 $ 10,251
3 $ 24,826 $1,022,500 $1,022,500 $ 1,022,500 $ 13,750 $ 16,033 $ 18,503
4 $ 33,942 $1,030,000 $1,030,000 $ 1,030,000 $ 19,517 $ 23,346 $ 27,654
5 $ 43,514 $1,037,500 $1,037,500 $ 1,037,500 $ 25,227 $ 31,020 $ 37,802
6 $ 53,565 $1,045,000 $1,045,000 $ 1,045,000 $ 31,270 $ 39,465 $ 49,446
7 $ 64,118 $1,052,500 $1,052,500 $ 1,052,500 $ 37,256 $ 48,309 $ 62,316
8 $ 75,199 $1,060,000 $1,060,000 $ 1,060,000 $ 43,186 $ 57,570 $ 76,545
9 $ 86,834 $1,067,500 $1,067,500 $ 1,067,500 $ 49,059 $ 67,269 $ 92,281
10 $ 99,051 $1,075,000 $1,075,000 $ 1,075,000 $ 54,875 $ 77,427 $ 109,688
15 $ 169,931 $1,112,500 $1,112,500 $ 1,112,500 $ 87,430 $ 140,952 $ 234,727
20 $ 260,394 $1,150,000 $1,150,000 $ 1,389,302 $116,337 $ 219,173 $ 441,048
25 $ 375,851 $1,187,500 $1,187,500 $ 2,051,627 $143,034 $ 318,060 $ 786,064
30 $ 523,206 $1,225,000 $1,225,000 $ 2,980,906 $166,457 $ 442,397 $ 1,361,144
35 $ 711,272 $1,262,500 $1,262,500 $ 4,282,601 $183,951 $ 597,534 $ 2,314,919
40 $ 951,298 $1,300,000 $1,300,000 $ 6,177,109 $189,017 $ 789,473 $ 3,884,974
45 $1,257,639 $1,337,500 $1,434,780 $ 9,012,498 $164,188 $1,024,843 $ 6,437,499
50 $1,648,615 $1,375,000 $1,657,332 $13,356,990 $ 65,801 $1,304,986 $10,517,315
- ---------------------------- --------------------------------------------- -------------------------------------------
</TABLE>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
- ---------------------------------------------------------------
End of
Policy Year 0% 6% 12%
- ---------------------------------------------------------------
1 $ 5,942 $ 6,325 $ 6,710
2 $11,825 $ 12,965 $ 14,151
3 $17,650 $ 19,933 $ 22,403
4 $23,417 $ 27,246 $ 31,554
5 $29,127 $ 34,920 $ 41,702
6 $34,780 $ 42,975 $ 52,956
7 $40,376 $ 51,429 $ 65,436
8 $45,916 $ 60,300 $ 79,275
9 $51,399 $ 69,609 $ 94,621
10 $56,825 $ 79,377 $111,638
15 $87,430 $140,952 $234,727
- ---------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
50 |Appendix D
<PAGE>
TABLE 10
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 1 $1 million Initial Face Amount
Guaranteed Schedule of Mortality and Expense Charges and Cash Value Test
Current Fund Level Charges
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
----------------------------------- -----------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ------------------------------ ------------------------------------------------ --------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 7,875 $1,000,000 $1,000,000 $1,000,000 $ 1,751 $ 2,121 $ 2,491
2 $ 16,144 $1,000,000 $1,000,000 $1,000,000 $ 7,323 $ 8,414 $ 9,550
3 $ 24,826 $1,000,000 $1,000,000 $1,000,000 $ 12,815 $ 14,990 $ 17,344
4 $ 33,942 $1,000,000 $1,000,000 $1,000,000 $ 18,227 $ 21,861 $ 25,952
5 $ 43,514 $1,000,000 $1,000,000 $1,000,000 $ 23,559 $ 29,039 $ 35,455
6 $ 53,565 $1,000,000 $1,000,000 $1,000,000 $ 29,200 $ 36,927 $ 46,338
7 $ 64,118 $1,000,000 $1,000,000 $1,000,000 $ 34,758 $ 45,146 $ 58,311
8 $ 75,199 $1,000,000 $1,000,000 $1,000,000 $ 40,233 $ 53,710 $ 71,487
9 $ 86,834 $1,000,000 $1,000,000 $1,000,000 $ 45,623 $ 62,632 $ 85,992
10 $ 99,051 $1,000,000 $1,000,000 $1,000,000 $ 50,925 $ 71,925 $ 101,961
15 $ 169,931 $1,000,000 $1,000,000 $1,000,000 $ 80,683 $129,862 $ 215,932
20 $ 260,394 $1,000,000 $1,000,000 $1,257,628 $105,339 $198,586 $ 399,247
25 $ 375,851 $1,000,000 $1,000,000 $1,817,457 $125,315 $281,785 $ 696,344
30 $ 523,206 $1,000,000 $1,000,000 $2,565,682 $137,189 $380,585 $1,171,544
35 $ 711,272 $1,000,000 $1,000,000 $3,541,135 $131,673 $493,759 $1,914,127
40 $ 951,298 $1,000,000 $1,000,000 $4,833,658 $ 87,906 $618,955 $3,040,036
45 $1,257,639 $ 0 $1,049,748 $6,529,825 $ 0 $749,820 $4,664,161
50 $1,648,615 $ 0 $1,110,024 $8,775,423 $ 0 $874,035 $6,909,782
- ------------------------------ ------------------------------------------------ --------------------------------------------
</TABLE>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
- --------------------------------------------------------------------
End of
Policy Year 0% 6% 12%
- --------------------------------------------------------------------
1 $ 5,651 $ 6,021 $ 6,391
2 $11,223 $ 12,314 $ 13,450
3 $16,715 $ 18,890 $ 21,244
4 $22,127 $ 25,761 $ 29,852
5 $27,459 $ 32,939 $ 39,355
6 $32,710 $ 40,437 $ 49,848
7 $37,878 $ 48,266 $ 61,431
8 $42,963 $ 56,440 $ 74,217
9 $47,963 $ 64,972 $ 88,332
10 $52,875 $ 73,875 $103,911
15 $80,683 $129,862 $215,932
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
Appendix D| 51
<PAGE>
TABLE 11
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 2 $1 million Initial Face Amount
Guaranteed Schedule of Mortality and Expense Charges and Cash Value Test
Current Fund Level Charges
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
---------------------------------------------- ------------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ------------------------------ ---------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 7,875 $1,005,651 $1,006,021 $1,006,391 $ 1,751 $ 2,121 $ 2,491
2 $ 16,144 $1,011,223 $1,012,314 $1,013,450 $ 7,323 $ 8,414 $ 9,550
3 $ 24,826 $1,016,715 $1,018,889 $1,021,244 $ 12,815 $ 14,989 $ 17,344
4 $ 33,942 $1,022,126 $1,025,760 $1,029,850 $ 18,226 $ 21,860 $ 25,950
5 $ 43,514 $1,027,457 $1,032,937 $1,039,352 $ 23,557 $ 29,037 $ 35,452
6 $ 53,565 $1,032,707 $1,040,433 $1,049,843 $ 29,197 $ 36,923 $ 46,333
7 $ 64,118 $1,037,873 $1,048,259 $1,061,422 $ 34,753 $ 45,139 $ 58,302
8 $ 75,199 $1,042,955 $1,056,428 $1,074,202 $ 40,225 $ 53,698 $ 71,472
9 $ 86,834 $1,047,950 $1,064,954 $1,088,307 $ 45,610 $ 62,614 $ 85,967
10 $ 99,051 $1,052,857 $1,073,848 $1,103,871 $ 50,907 $ 71,898 $ 101,921
15 $ 169,931 $1,080,590 $1,129,701 $1,215,648 $ 80,590 $129,701 $ 215,648
20 $ 260,394 $1,104,997 $1,197,884 $1,397,984 $104,997 $197,884 $ 397,984
25 $ 375,851 $1,124,249 $1,279,174 $1,811,032 $124,249 $279,174 $ 693,882
30 $ 523,206 $1,134,252 $1,371,856 $2,556,961 $134,252 $371,856 $1,167,562
35 $ 711,272 $1,124,234 $1,465,828 $3,529,381 $124,234 $465,828 $1,907,773
40 $ 951,298 $1,072,136 $1,534,907 $4,817,846 $ 72,136 $534,907 $3,030,092
45 $1,257,639 $ 0 $1,510,014 $6,508,662 $ 0 $510,014 $4,649,044
50 $1,648,615 $ 0 $1,267,615 $8,747,157 $ 0 $267,615 $6,887,525
- ------------------------------ ---------------------------------------------- ------------------------------------------
</TABLE>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
- -----------------------------------------------------------------
End of
Policy Year 0% 6% 12%
- -----------------------------------------------------------------
1 $ 5,651 $ 6,021 $ 6,391
2 $11,223 $ 12,314 $ 13,450
3 $16,715 $ 18,889 $ 21,244
4 $22,126 $ 25,760 $ 29,850
5 $27,457 $ 32,937 $ 39,352
6 $32,707 $ 40,433 $ 49,843
7 $37,873 $ 48,259 $ 61,422
8 $42,955 $ 56,428 $ 74,202
9 $47,950 $ 64,954 $ 88,307
10 $52,857 $ 73,848 $103,871
15 $80,590 $129,701 $215,648
- -----------------------------------------------------------------
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
52 |Appendix D
<PAGE>
TABLE 12
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
<TABLE>
<CAPTION>
Male and Female Each Issue Age 35, Ultra Preferred Non-Tobacco $7,500 Annual Premium
Death Benefit Option 3 $1 million Initial Face Amount
Guaranteed Schedule of Mortality and Expense Charges and Cash Value Test
Current Fund Level Charges
Death Benefit Assuming Hypothetical Net Surrender Value Assuming Hypothetical
Gross Annual Investment Return of: Gross Annual Investment Return of:
----------------------------------- -----------------------------------------
Premiums
End of Accumulated at
Policy 5% Interest
Year Per Year 0% 6% 12% 0% 6% 12%
- ------------------------------ ---------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 7,875 $1,007,500 $1,007,500 $1,007,500 $ 1,751 $ 2,121 $ 2,491
2 $ 16,144 $1,015,000 $1,015,000 $1,015,000 $ 7,323 $ 8,414 $ 9,550
3 $ 24,826 $1,022,500 $1,022,500 $1,022,500 $ 12,814 $ 14,989 $ 17,344
4 $ 33,942 $1,030,000 $1,030,000 $1,030,000 $ 18,226 $ 21,860 $ 25,950
5 $ 43,514 $1,037,500 $1,037,500 $1,037,500 $ 23,557 $ 29,036 $ 35,452
6 $ 53,565 $1,045,000 $1,045,000 $1,045,000 $ 29,196 $ 36,922 $ 46,333
7 $ 64,118 $1,052,500 $1,052,500 $1,052,500 $ 34,751 $ 45,138 $ 58,303
8 $ 75,199 $1,060,000 $1,060,000 $1,060,000 $ 40,222 $ 53,697 $ 71,473
9 $ 86,834 $1,067,500 $1,067,500 $1,067,500 $ 45,605 $ 62,612 $ 85,970
10 $ 99,051 $1,075,000 $1,075,000 $1,075,000 $ 50,900 $ 71,896 $ 101,928
15 $ 169,931 $1,112,500 $1,112,500 $1,112,500 $ 80,554 $129,707 $ 215,743
20 $ 260,394 $1,150,000 $1,150,000 $1,255,848 $104,861 $197,988 $ 398,682
25 $ 375,851 $1,187,500 $1,187,500 $1,815,086 $123,780 $279,799 $ 695,435
30 $ 523,206 $1,225,000 $1,225,000 $2,562,518 $132,690 $374,612 $1,170,100
35 $ 711,272 $1,262,500 $1,262,500 $3,536,962 $118,778 $476,307 $1,911,871
40 $ 951,298 $1,300,000 $1,300,000 $4,828,193 $ 52,054 $569,365 $3,036,599
45 $1,257,639 $ 0 $1,337,500 $6,522,769 $ 0 $608,158 $4,659,121
50 $1,648,615 $ 0 $1,375,000 $8,766,426 $ 0 $474,240 $6,902,697
- ------------------------------ ---------------------------------------------- ------------------------------------------
</TABLE>
Account Value Assuming Hypothetical
Gross Annual Investment Return of:
- ----------------------------------------------------------------
End of
Policy Year 0% 6% 12%
- ----------------------------------------------------------------
1 $ 5,651 $ 6,021 $ 6,391
2 $11,223 $ 12,314 $ 13,450
3 $16,714 $ 18,889 $ 21,244
4 $22,126 $ 25,760 $ 29,850
5 $27,457 $ 32,936 $ 39,352
6 $32,706 $ 40,432 $ 49,843
7 $37,871 $ 48,258 $ 61,423
8 $42,952 $ 56,427 $ 74,203
9 $47,945 $ 64,952 $ 88,310
10 $52,850 $ 73,846 $103,878
15 $80,554 $129,707 $215,743
- ----------------------------------------------------------------
- --------------------------------------------------------------------------------
Please remember that the hypothetical investment rates of return shown above and
elsewhere in this prospectus are illustrative only and are not a representation
of past or future investment rates of return. Actual rates of return may be more
or less than those shown.
Appendix D| 53
<PAGE>
Appendix E
<TABLE>
<CAPTION>
Directors of C.M. Life Insurance Company
Name, Position, Business Address Principal Occupation(s) During Past Five Years
<S> <C>
Lawrence V. Burkett, Jr., Director, C.M. Life
President and Chief Executive Officer Director, President and Chief Executive Officer (since 1996)
1295 State Street MassMutual
Springfield, MA 01111 Executive Vice President and General Counsel (since 1993)
Senior Vice President and Deputy General Counsel (1992-1993)
Isadore Jermyn, Director and Senior Vice C.M. Life
President and Actuary Director (since 1998); Senior Vice President and Actuary (since 1996)
1295 State Street MassMutual
Springfield, MA 01111 Senior Vice President and Actuary (since 1999 and 1995-1998)
Senior Vice President and Chief Actuary (1998-1999)
Vice President and Actuary (1980-1995)
James E. Miller, Director and Senior C.M. Life
Vice President-Life Operations Director and Senior Vice President-Life Operations (since 1998)
140 Garden Street MassMutual
Hartford, CT 06154 Executive Vice President (since 1997 and 1987-1996)
Unicare Life & Health
Senior Vice President (1996-1997)
Robert J. O'Connell, Director C.M. Life
1295 State Street Director (since 1999)
Springfield, MA 01111 MassMutual
President and Chief Executive Officer (since 1999)
American International Group, Inc.
Senior Vice President (1991-1998)
AIG Life Companies
President and Chief Executive Officer (1991-1998)
Efrem Marder C.M. Life
1295 State Street Director
Springfield, MA 01111 MassMutual
Executive Managing Director (since 1998)
Senior Managing Director (1996-1998)
Vice President and Managing Director (1989-1996)
</TABLE>
54 |Appendix E
<PAGE>
<TABLE>
<CAPTION>
Principal Officers (other than those who are also Directors):
<S> <C>
Anne Melissa Dowling, Senior Vice C.M. Life
President-Large Corporate Marketing Senior Vice President-Large Corporate Marketing (since 1996)
140 Garden Street MassMutual
Hartford, CT 06154 Senior Vice President (since 1996)
Connecticut Mutual Life Insurance Company
Chief Investment Officer (1994-1996)
Travelers Insurance Co.
Senior Vice President-International (1987-1993)
Edward M. Kline, Treasurer C.M. Life
1295 State Street Treasurer (since 1997)
Springfield, MA 01111 MassMutual
Vice President (since 1989) and Treasurer (since 1997)
Ann F. Lomeli, Secretary C.M. Life
1295 State Street Secretary (since 1988)
Springfield, MA 01111 MassMutual
Vice President, Secretary and Deputy General Counsel (since 1999)
Vice President, Secretary and Associate General Counsel (1998-1999)
Vice President, Associate Secretary and Associate General Counsel
(1996-1998)
Connecticut Mutual Life Insurance Company
Corporate Secretary and Counsel (1988-1996)
</TABLE>
Appedix E| 55
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission (the "Commission") such supplementary and
periodic information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.
RULE 484 UNDERTAKING
The Bylaws of C.M. Life provide for indemnification of directors and officers as
follows:
C.M. Life directors and officers are indemnified under its by-laws. No
indemnification is provided with respect to any liability to any entity which is
registered as an investment company under the Investment Company Act of 1940 or
to the security holders thereof, where the basis for such liability is willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of office.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of C.M.
Life pursuant to the foregoing provisions, or otherwise, C.M. Life has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act of
1933, and is, therefore unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by C.M. Life of
expenses incurred or paid by a director, officer or controlling person of C.M.
Life in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities
being registered, C.M. Life 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 Securities Act of 1933 and will be
governed by the final adjudication of such issue.
REPRESENTATION UNDER SECTION 26(e)(2)(A) OF
THE INVESTMENT COMPANY ACT OF 1940
C.M. Life hereby represents that the fees and charges deducted under the
flexible premium adjustable variable life insurance policies described in this
Registration Statement in the aggregate, are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the risks assumed
by C.M. Life.
<PAGE>
CONTENTS OF FILING
This Registration Statement is comprised of the following documents:
The Facing Sheet.
Cross-Reference to items required by Form N-8B-2.
The Prospectus consisting of 55 pages.
The Undertaking to File Reports.
The Undertaking pursuant to Rule 484 under the Securities Act of
1933.
Representation under Section 26(e)(2)(a) of the Investment Company
Act of 1940.
The Signatures.
Written Consents of the Following Persons:
1. To be filed: Deloitte & Touche LLP and
PricewaterhouseCoopers LLP as its independent accountants;
2. Form of Counsel opining as to the legality of securities
being registered;
3. Form of Opinion and consent of Craig Waddington, FSA, MAAA,
opining as to actuarial matters contained in the
Registration Statement.
99.A The following Exhibits correspond to those required by Paragraph A of
the instructions as to Exhibits in Form N-8B-2:
1.a. Resolution of Board of Directors of CM Life establishing the
Separate Account: /1/
1.b. To be filed: Certificate from C.M. Life's Secretary attesting to
the establishment of the SVUL II Segment.
2. Not Applicable.
3.a. Form of Distribution Servicing Agreement between MML
Distributors, LLC and C.M. Life./3/
3.b. Form of Co-Underwriting Agreement between MML Investors
Services, Inc. and C.M. Life./4/
4. Not Applicable.
5.a. Form of Survivorship Flexible Premium Adjustable Variable Life
Policy
b. Form of Survivorship Term Rider
c. Form of Estate Protection Rider
d. Form of Accelerated Death Benefit Rider
e. Form of Policy Split Option Rider
6a. Certificate of Incorporation of C.M. Life./5/
6b. By-Laws of C.M. Life./5/
7. Not Applicable.
8. Form of Participation Agreements.
a. Oppenheimer Variable Account Fund/6/
b. Variable Insurance Products Fund II/7/
c. T. Rowe Price Equity Series, Inc./8/
<PAGE>
d. American Century Variable Portfolios, Inc./7/
e. Janus Aspen Series/13/
f. BT Insurance Funds/13/
g. Goldman Sachs Variable Insurance Trust/8/
h. Templeton Variable Product Series Fund Trust/13/
9. Not Applicable.
10. To be Filed: Form of Application for a Survivorship Flexible
Premium Adjustable Variable Life insurance policy.
11. Form of Memorandum describing C.M. Life's issuance, transfer, and
redemption procedures for the Policy./10/
99.B. Form of Opinion and Consent of Counsel as to the legality of the
securities being registered.
99.C. No financial statement will be omitted from the Prospectus pursuant
to Instruction 1(b) or (c) of Part I.
99.D. Not Applicable.
99.E. To be Filed: Consent of Deloitte & Touche LLP and
PricewaterhouseCoopers LLP as independent accountants.
99.F. Form of Opinion and consent of Craig Waddington, FSA, MAAA, as to
actuarial matters pertaining to the securities being registered.
99.G. Powers of Attorney/3/
1. Powers of Attorney for John Miller, Jr., James Miller and
Isadore Jermyn/11/
2. Power of Attorney for Robert J. O'Connell/12/
27. Not Applicable
_________
/1/ Incorporated by reference to Initial Registration Statement No. 33-49457
filed with the Commission as an exhibit on April 6, 1999.
/2/ Incorporated by reference to this Initial Registration Statement filed with
the Commission as an exhibit on December 5, 1997.
/3/ Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement No. 33-91072 dated August 11, 1995.
/4/ Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement No. 33-91072 dated May 1, 1996.
/5/ Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement No. 33-91072 filed with the Commission as an exhibit
effective May 1, 1998.
/6/ Incorporated by reference to Initial Registration Statement No. 333-22557
filed with the Commission as an exhibit on February 28, 1997.
/7/ Incorporated by reference to Pre-Effective Amendment No. 2 to Registration
Statement No. 333-41657 filed with the Commission as an exhibit on May 26,
1998.
/8/ Incorporated by reference to the Initial Registration Statement No. 333-
65887 filed with the Commission as an exhibit on October 20, 1998.
/9/ Incorporated by reference to Pre-Effective Amendment No. 1 to this
Registration Statement No. 333-41667 filed with the Commission as an
exhibit on March 19, 1998.
/10/ Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement No. 333-49475 filed with the Commission as an exhibit on April
26, 1998.
/11/ Incorporated by reference to Post-Effective Amendment to Registration
Statement No. 333-61679 filed with the Commission as an exhibit on December
21, 1998.
/12/ Filed herewith.
/13/ Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement No. 333-80991 filed with the Commission on September 20, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant has
caused this Registration Statement to be signed on its behalf by the undersigned
thereunto duly authorized, all in the city of Hartford and the state of
Connecticut, on the 4th day of October, 1999.
C.M. LIFE VARIABLE LIFE SEPARATE ACCOUNT I
C.M. LIFE INSURANCE COMPANY
(Depositor)
By: /s/ Lawrence V. Burkett, Jr.*
-------------------------------------------
Lawrence V. Burkett, Jr.,
President and Chief Executive Officer
C.M. Life Insurance Company
/s/ Richard M. Howe On October 4, 1999, as Attorney-in-Fact pursuant to
- -------------------- powers of attorney filed herewith.
*Richard M. Howe
As required by the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the duties indicated.
Signature Title Date
--------- ----- ----
/s/ Lawrence V. Burkett, Jr.* Director, President and Chief October 4, 1999
- ------------------------------- Executive Officer
Lawrence V. Burkett, Jr.
/s/ John Miller, Jr.* Vice President and Comptroller October 4, 1999
- ------------------------------- (Principal Accounting Officer)
John Miller, Jr.
/s/Robert J. O'Connell Director and Chairman of the October 4, 1999
- ------------------------------- Board
Robert J. O'Connell
/s/ James E. Miller Director October 4, 1999
- --------------------------------
James E. Miller
/s/ Isadore Jermyn Director October 4, 1999
- --------------------------------
Isadore Jermyn
/s/ Richard M. Howe On October 4, 1999, as Attorney-in-Fact
- -------------------------------- pursuant to powers of attorney filed herewith.
*Richard M. Howe
<PAGE>
EXHIBIT LIST
99.A.5.a. Form of Survivorship Flexible Premium Adjustable Variable Life
Policy.
b. Form of Survivorship Term Rider
c. Form of Estate Protection Rider
d. Form of Accelerated Death Benefit Rider
e. Form of Policy Split Option Rider
99.B. Form of Opinion and Consent of Counsel as to the legality of the
securities being registered.
99.F Form of Opinion and consent of Craig Waddington, FSA, MAAA, as to
actuarial matters pertaining to the securities being registered.
<PAGE>
Exhibit 99.A.5
C.M. Life Insurance Company C.M. Life Insurance Company
A STOCK COMPANY Home Office: Hartford, Connecticut
Administrative Office: Springfield,
Massachusetts
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
- --------------------------------------------------------------------------------
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000 INITIAL FACE AMOUNT $500,000
- --------------------------------------------------------------------------------
Dear Policy Owner:
READ YOUR POLICY CAREFULLY. It has been written in readable language to help you
understand its terms. We have used examples to explain some of its provisions.
These examples do not reflect the actual amounts or status of this policy. As
you read through the policy, remember the words "we," "us," and "our" refer to
C.M. Life Insurance Company.
We will, subject to the terms of this policy, pay the death benefit to the
Beneficiary when due proof of the death of both Insureds has been received at
our Administrative Office. However, due proof of the first death must be
furnished when it occurs.
The terms of this policy are contained on this and the following pages. For
service and information on this policy, contact the agent who sold the policy,
any of our agency offices, or our Administrative Office.
YOU HAVE THE RIGHT TO RETURN THIS POLICY. If you decide not to keep this policy,
return it within 10 days after you receive it. It may be returned by delivering
or mailing it to our Administrative Office, to any of our agency offices, or to
the agent who sold the policy. Then, the policy will be as though it had never
been issued. We will promptly refund (a) any premium paid for this policy, plus
(b) interest credited to this policy under the Guaranteed Principal Account,
plus or minus (c) an amount that reflects the investment experience of the
investment divisions of the Separate Account under this policy to the date the
policy is received by us, minus (d) any amounts withdrawn and any policy debt.
Signed for C.M. Life Insurance Company.
Sincerely yours,
/s/ ABC /s/ ABC
PRESIDENT SECRETARY
This Policy provides that: A death benefit is payable when both Insureds have
died.
Within specified limits, flexible premiums may be
paid while either Insured is living.
No dividends will be paid.
The amount of death benefit and the duration of insurance coverage may be fixed
or variable as described in Parts 3 and 5.
The variable account value of the policy may increase or decrease in accordance
with the experience of the Separate Account. There are no minimum guarantees as
to the variable account value. The fixed account value of the policy earns
interest at a rate not less than the minimum described in the Interest On Fixed
Account Value provision.
P5-99
<PAGE>
Policy Summary
This Summary briefly describes some of the major policy provisions. Since it
does not go into detail, the actual provisions will prevail. See the provisions
for full information and any limits that may apply. The "Table Of Contents"
shows where the provisions may be found.
This is a variable universal life insurance policy on the lives of two Insureds.
We will pay a death benefit if both Insureds die while the policy is in force.
"In force" means that the insurance has not terminated. "Variable" means that
values depend on the investment performance of the Separate Account shown in the
Policy Specifications and are not guaranteed as to dollar amount. "Universal
life" means that, subject to the limits and conditions stated in the policy, the
amount of insurance may be adjusted and flexible premium payments may be made.
Premiums for this policy are flexible. After the first premium has been paid,
there is no requirement that any specific amount of premium be paid on any date.
Instead, within the limits stated in the policy, any amount may be paid on any
date during the lifetime of either Insured.
Premiums are applied to increase the value of this policy. Monthly charges are
due, and deducted from the value of this policy, each month. If the value cannot
cover the monthly charges for a month and premiums paid do not meet certain
requirements, the policy may terminate 61 days after the due date. There is,
however, a right to reinstate the policy.
Other rights available under this policy include the rights to:
. Change the Owner or any Beneficiary;
. Assign this policy;
. Change the Face Amount;
. Change the Death Benefit Option;
. Make loans;
. Make withdrawals;
. Surrender this policy;
. Allocate net premiums among the Guaranteed Principal Account and the
divisions of the Separate Account; and
. Transfer values between the Guaranteed Principal Account and the
divisions of the Separate Account.
This policy also includes a number of Payment Options. They provide alternate
ways for us to pay the death benefit or the amount payable upon surrender of the
policy.
P5-99
<PAGE>
TABLE OF CONTENTS
Policy Specifications
Page No
-------
Part 1. - The Basics Of This Policy................................
The Parties Involved - Owner, Insureds,
Beneficiary, Irrevocable Beneficiary............................
Dates - Policy Date, Policy Anniversary
Date, Policy Year, Monthly Charge Date,
Issue Date, Valuation Date, Valuation
Period, Valuation Time, Register Date...........................
Policy A Legal Contract..........................................
Policy Is Not Participating......................................
Representations And Contestability...............................
Misstatement Of Age Or Gender....................................
Death By Suicide.................................................
Meaning Of In Force..............................................
Meaning Of Second Death..........................................
Simultaneous Deaths..............................................
Face Amount......................................................
Year Of Coverage.................................................
Ages - Issue Age, Attained Age...................................
Written Request..................................................
Currency.........................................................
Administrative Office............................................
Part 2. - Premium Payments.........................................
The First Premium................................................
Planned Premiums.................................................
Premium Flexibility And Premium Notices..........................
Where To Pay Premiums............................................
Right To Refund Premiums.........................................
Net Premium......................................................
Allocation Of Net Premiums.......................................
Part 3. - Accounts, Values, And Charges............................
The Separate Account And The
Guaranteed Principal Account....................................
The Separate Account............................................
Changes In The Separate Account.................................
Accumulation Units..............................................
Purchase And Sale Of Accumulation Units.........................
The Guaranteed Principal Account................................
Values Of This Policy............................................
Account Value Of Policy.........................................
Variable Account Value Of Policy................................
Fixed Account Value Of Policy...................................
Interest On Fixed Account Value.................................
Monthly Policy Charges...........................................
Monthly Charges.................................................
Administrative Charge...........................................
Face Amount Charge..............................................
Insurance Charge................................................
Rider Charge....................................................
Grace Period And Termination....................................
Safety Test.....................................................
Part 4. - Life Benefits............................................
Policy Ownership................................................
Rights Of Owner................................................
Changing The Owner Or Beneficiary..............................
Transfers Of Values............................................
Assigning This Policy..........................................
Annual Report..................................................
Right To Change The Face Amount..................................
Increases In The Face Amount...................................
Decreases In The Face Amount...................................
Evidence Of Changes............................................
Borrowing Against This Policy....................................
Right To Make Loans............................................
Effect Of Loan.................................................
Maximum Loan Available.........................................
Interest On Loans..............................................
Policy Debt Limit..............................................
Repayment Of Policy Debt.......................................
Other Borrowing Rules..........................................
Surrendering This Policy And Making
Withdrawals...................................................
Right To Surrender.............................................
Net Surrender Value............................................
Making Withdrawals.............................................
How We Pay.....................................................
Reinstating This Policy..........................................
When Policy May Be Reinstated..................................
Requirements To Reinstate......................................
Policy After Reinstatement.....................................
Part 5. - The Death Benefit........................................
Amount Of Death Benefit........................................
Death Benefit Options..........................................
Minimum Death Benefit..........................................
Changes In The Death Benefit Option............................
When We Pay....................................................
Interest On Death Benefit......................................
Part 6. - Payment Options..........................................
Availability Of Options........................................
Minimum Amounts................................................
Description Of Options.........................................
Options 1, 2, 3, 4, 5, 6.......................................
P5-99
<PAGE>
TABLE OF CONTENTS (continued)
Alternate Life Income............................................
Electing A Payment Option........................................
Effective Date And Payment Dates.................................
Withdrawals And Changes..........................................
Income Protection................................................
Other Payment Option Rules.......................................
Part 7. - Notes On Our Computations................................
Net Investment Factor............................................
Accumulation Unit Value..........................................
Adjustment Of Units And Values...................................
Basis Of Computation.............................................
Method Of Computing Values.......................................
Payment Option Rates Tables........................................
Any riders and endorsements, and a copy of the application for the policy,
follow page XX.
- --------------------------------------------------------------------------------
For additional important terms used in this policy, see the following
provisions:
<TABLE>
<CAPTION>
Term Provision Page No.
- ---- --------- --------
<S> <C> <C>
Death Benefit Factor Minimum Death Benefit
Guarantee Periods Safety Test
Guarantee Premiums Safety Test
Insurance Risk Insurance Charge
Loan Interest Rate Expense Charge Interest On Fixed Account Value
Minimum Annual Interest Rate For The Interest On Fixed Account Value
Guaranteed Principal Account
Policy Debt Right To Make Loans
Premium Expense Charge, Factor Net Premium
Separate Account Charge For Mortality And Net Investment Factor
Expense Risk
Surrender Charges Net Surrender Value
Withdrawal Fee Making Withdrawals
</TABLE>
P5-99
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
ISSUE AGE GENDER
INSURED NO. 1 JANE C. DOE 35 FEMALE
INSURED NO. 2 JOHN A. DOE 35 MALE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000 INITIAL FACE AMOUNT $100,000
RISK CLASSES SEE THE TABLE(S) OF MAXIMUM MONTHLY INSURANCE CHARGES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Subject to the terms of this policy, the Face Amount is adjustable. If the Face
Amount is adjusted, then revised and additional Policy Specifications will be
sent.
<S> <C>
DEATH BENEFIT OPTION (See Part 5 of this policy.) 1
MONTHLY CHARGE DATES 1st day of each month
FIRST PREMIUM $1,000.00
PLANNED PREMIUM $1,000.00
PLANNED PREMIUM FREQUENCY Annual
FIRST GUARANTEE PERIOD First 20 Policy Years
FIRST GUARANTEE PREMIUM $206.20
SECOND GUARANTEE PERIOD First 65 Policy Years
SECOND GUARANTEE PREMIUM $773.60
POLICY CHARGES AND FEES:
MAXIMUM PREMIUM EXPENSE CHARGE 10.0% of premium payments up to Premium
DURING EACH YEAR OF COVERAGE (See Net Expense Factor; 7.5% of excess premium
Premium provision in Part 2.) payments
MAXIMUM MONTHLY ADMINISTRATIVE CHARGE* $12.00 through Attained Age 99 of younger
Insured; $0.00 thereafter
MAXIMUM MONTHLY FACE AMOUNT CHARGE*
BY YEAR OF COVERAGE
Years 1 - 10 $0.08
Years 11 and later $0.00
MAXIMUM MONTHLY INSURANCE CHARGE* See the Table(s) Of Maximum Monthly
Insurance Charges
RIDER CHARGES* See the Policy Specifications for the
Rider(s), if any
MAXIMUM LOAN INTEREST RATE EXPENSE CHARGE 0.80%
MAXIMUM WITHDRAWAL FEE $25.00 per withdrawal
SURRENDER CHARGE See the Table(s) Of Surrender Charges
MAXIMUM SEPARATE ACCOUNT CHARGE FOR 0.60% effective annual rate (decimal daily
MORTALITY AND EXPENSE RISK** equivalent 0.00001639)
</TABLE>
*For more information, see the "Monthly Policy Charges" section in Part 3 of
this policy. Monthly charges beyond Attained Age 99 of the younger Insured
are zero.
**For more information, see the Net Investment Factor provision in
Part 7 of this policy.
NOTE: Timely payment of planned premiums does not guarantee that this policy
will stay in force until both Insureds have died.
POLICY SPECIFICATIONS PAGE 1 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
LIMIT ON PREMIUM PAYMENTS IN ANY POLICY YEAR:
The maximum limit for premium payments in any Policy Year is the largest premium
that would not exceed the LIMIT ON TOTAL PREMIUM PAYMENTS stated below or, if
less, the greatest of:
. $912.00;
. The amount of premiums paid in the preceding Policy Year; and
. The largest premium that would not increase the Insurance Risk.
LIMIT ON TOTAL PREMIUM PAYMENTS:
As of any date, the maximum limit on the sum of the premiums paid under this
policy is the greater of items A and B below. This limit may be revised if the
policy is changed. These changes include, but are not limited to, withdrawals,
changing the Face Amount or Death Benefit Option, and adding or deleting benefit
riders. If the limit is revised, new Policy Specifications will be sent.
A. $ 8,006.40;
B. $ 773.60 multiplied by the result of one (1) plus the number
of full Policy Years elapsed.
LIMITATIONS ON NET PREMIUM ALLOCATIONS AND TRANSFERS:
While this policy is in force, the cumulative limit on the number of distinct
Separate Account divisions to which net premiums are allocated and transfers are
made is 16. We reserve the right to increase this limit.
Further limits on access to Separate Account divisions may be added in order for
this policy to continue to qualify as life insurance under federal tax law.
ADDITIONAL LIMITATIONS ON TRANSFERS (See Transfers Of Values provision in Part
4.)
Transfers must be in whole-number percentages or in dollar-and-cent amounts.
Transfers of values from the Guaranteed Principal Account to the Separate
Account (excluding any transfer on the day after the Issue Date) are limited to
one each Policy Year. After that day, any transfer from the Guaranteed Principal
Account cannot exceed 25% of the fixed account value of this policy (less any
policy debt) on the date of transfer.
We reserve the right to limit transfers such that no transfers may be made for
at least 90 days after the preceding transfer. Any such limitation would not
apply to a transfer of all funds in the Separate Account to the Guaranteed
Principal Account, to transfers resulting from a policy loan, or to automated
transfers in connection with any program the Company has in place.
POLICY SPECIFICATIONS PAGE 2 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT INFORMATION (See The Separate Account provision in Part 3.)
- ----------------------------
The Separate Account referred to in this policy is C.M. Life Variable Life
Separate Account I.
The divisions of the Separate Account are:
MML Equity Oppenheimer Main Street Growth & Income
MML Money Market Oppenheimer High Income
MML Managed Bond Oppenheimer Bond
MML Blend Fidelity VIP II Contrafund
MML Equity Index T. Rowe Price Mid-Cap Growth
MML Small Cap Value Equity American Century VP Income & Growth
MML Growth Equity Bankers Trust Small Cap Index
MML Small Cap Growth Equity Goldman Sachs Capital Growth
Oppenheimer Aggressive Growth Janus Aspen Capital Appreciation
Oppenheimer Global Securities Janus Aspen Worldwide Growth
Oppenheimer Capital Appreciation Templeton International
Oppenheimer Strategic Bond
The types of investments and the objectives for each division are given in the
Prospectus.
MINIMUM ANNUAL INTEREST RATE FOR THE 3.00% (decimal monthly
GUARANTEED PRINCIPAL ACCOUNT equivalent 0.00246627)
LOAN INTEREST RATE (See Interest On Loans in Part 4.) Variable
MINIMUM FACE AMOUNT $100,000
MINIMUM FACE AMOUNT INCREASE $50,000
RIDER(S) ATTACHED TO THIS POLICY:
- ---------------------------------
None
POLICY SPECIFICATIONS PAGE 3 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
PREMIUM EXPENSE FACTOR: 773.00
TABLE OF MAXIMUM MONTHLY INSURANCE CHARGES
RATES PER THOUSAND OF INSURANCE RISK
RISK CLASSES: INSURED NO. 1: NON-TOBACCO
INSURED NO. 2: NON-TOBACCO
ATTAINED ATTAINED ATTAINED
AGE OF THE AGE OF THE AGE OF THE
YOUNGER MONTHLY YOUNGER MONTHLY YOUNGER MONTHLY
INSURED RATE INSURED RATE INSURED RATE
------- ---- ------- ---- ------- ----
35 0.00002 57 0.00964 79 0.63554
36 0.00006 58 0.01144 80 0.76934
37 0.00010 59 0.01358 81 0.93261
38 0.00016 60 0.01616 82 1.13343
39 0.00022 61 0.01928 83 1.38047
40 0.00030 62 0.02316 84 1.67843
41 0.00040 63 0.02804 85 2.03303
42 0.00052 64 0.03412 86 2.44749
43 0.00066 65 0.04148 87 2.92813
44 0.00082 66 0.05031 88 3.47679
45 0.00102 67 0.06074 89 4.10303
46 0.00124 68 0.07295 90 4.81445
47 0.00151 69 0.08746 91 5.62502
48 0.00183 70 0.10516 92 6.55747
49 0.00220 71 0.12818 93 7.64951
50 0.00265 72 0.15490 94 9.00787
51 0.00318 73 0.19006 95 10.85216
52 0.00384 74 0.23416 96 13.65662
53 0.00463 75 0.28828 97 18.46654
54 0.00558 76 0.35383 98 27.61923
55 0.00672 77 0.43218 99 46.54633
56 0.00807 78 0.52494
The above rates are based on the following mortality tables:
INSURED NO. 1 - Commissioners 1980 Standard Ordinary Nonsmoker Mortality
Table - Female
INSURED NO. 2 - Commissioners 1980 Standard Ordinary Nonsmoker Mortality
Table - Male
The rate for the younger Insured's Attained Ages above 99 is 0.00.
POLICY SPECIFICATIONS PAGE 4 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
TABLE OF SURRENDER CHARGES
IF SURRENDER OCCURS IN
POLICY YEAR SURRENDER CHARGE
----------- ----------------
1 $2,280.00
2 $2,280.00
3 $2,280.00
4 $2,280.00
5 $2,280.00
6 $2,052.00
7 $1,824.00
8 $1,596.00
9 $1,368.00
10 $1,140.00
11 $912.00
12 $684.00
13 $456.00
14 $228.00
15 and later $0.00
For more information about surrender charges, see Part 4 of this policy.
POLICY SPECIFICATIONS PAGE 5 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
DEATH BENEFIT FACTORS
ATTAINED ATTAINED ATTAINED
AGE OF THE AGE OF THE AGE OF THE
YOUNGER YOUNGER YOUNGER
INSURED FACTOR INSURED FACTOR INSURED FACTOR
------- ------ ------- ------ ------- ------
35 2.50 57 1.42 79 1.05
36 2.50 58 1.38 80 1.05
37 2.50 59 1.34 81 1.05
38 2.50 60 1.30 82 1.05
39 2.50 61 1.28 83 1.05
40 2.50 62 1.26 84 1.05
41 2.43 63 1.24 85 1.05
42 2.36 64 1.22 86 1.05
43 2.29 65 1.20 87 1.05
44 2.22 66 1.19 88 1.05
45 2.15 67 1.18 89 1.05
46 2.09 68 1.17 90 1.05
47 2.03 69 1.16 91 1.04
48 1.97 70 1.15 92 1.03
49 1.91 71 1.13 93 1.02
50 1.85 72 1.11 94 1.01
51 1.78 73 1.09 95 1.00
52 1.71 74 1.07 96 1.00
53 1.64 75 1.05 97 1.00
54 1.57 76 1.05 98 1.00
55 1.50 77 1.05 99 1.00
56 1.46 78 1.05
Death Benefit Factor for Attained Ages above 99 is 1.00. These Death Benefit
Factors are used to determine the amount of the minimum death benefit. For more
information, see Part 5 of this policy.
POLICY SPECIFICATIONS PAGE 6 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
OWNER INFORMATION
OWNER
- -----
THE INSUREDS JOINTLY OR THE SURVIVING INSURED
POLICY SPECIFICATIONS PAGE 7 OF 8
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY
INSURED NO. 1 JANE C. DOE
INSURED NO. 2 JOHN A. DOE
POLICY DATE JANUARY 1, 2000 POLICY NUMBER 123456789
ISSUE DATE JANUARY 1, 2000
- --------------------------------------------------------------------------------
BENEFICIARY INFORMATION
BENEFICIARY
- -----------
JAMES B. DOE, SON OF THE INSUREDS
POLICY SPECIFICATIONS PAGE 8 OF 8
<PAGE>
Part 1. The Basics Of This Policy
In this Part, we discuss some definitions and insurance concepts necessary to
understand this policy. The words "we," "us," and "our" refer to C.M. Life
Insurance Company.
The Parties Involved - The Owner is the person who owns this policy, as
Owner, Insureds, shown in our records. The Owner has the right to
Beneficiary, Irrevocable exercise rights and privileges and to receive
Beneficiary benefits under the terms of this policy during the
lifetime of either Insured. If the Owner designated
under the terms of this policy is not living and if
the policy does not provide otherwise, the Owner will
be the estate of the last Owner to die.
For more information about the rights and benefits
available to the Owner, see the "Policy Ownership"
section in Part 4.
The Insureds are the two persons whose lives this
policy insures. An Insured may be the Owner of this
policy, or someone else may be the Owner.
Example: You buy a policy insuring your own life
and your spouse's life, and naming
yourself as Owner. In this case, you
are both an Insured and the Owner. If
you buy a policy insuring two other
lives and naming yourself as the Owner,
then the Owner is not an Insured.
A Beneficiary is any person named in our records to
receive the death benefit after both Insureds have
died. There may be different classes of
Beneficiaries, such as primary and secondary. These
classes set the order of payment. There may be more
than one Beneficiary in a class.
Example: Elizabeth is named as primary (first)
Beneficiary. Rachel and David are named
as Beneficiaries in the secondary
class. If Elizabeth is alive when the
second death occurs, she receives the
death benefit. If Elizabeth is not
alive but Rachel and David are alive
when the second death occurs, Rachel
and David receive the death benefit.
Any Beneficiary may be named an Irrevocable
Beneficiary. An Irrevocable Beneficiary is one whose
consent is needed to change that Beneficiary. Also,
this Beneficiary must consent to the exercise of
certain other policy rights.
If no Beneficiary designated under this policy
survives both Insureds, the Beneficiary will be the
Owner unless the policy states otherwise. The
interest of any Beneficiary will be subject to any
assignment of this policy that is binding on us and
to any payment option in effect at the time of the
second death.
See the "Policy Ownership" section in Part 4, and see
"Part 6. Payment Options."
P5-99 Page 1
<PAGE>
Dates - Policy Date, The Policy Date is shown in the Policy
Policy Anniversary Specifications. It is the starting point for
Date, Policy Year, determining Policy Anniversary Dates, Policy Years,
Monthly Charge and Monthly Charge Dates. The first Policy
Date, Issue Date, Anniversary Date is one year after the Policy Date.
Valuation Date, The period from the Policy Date to the first Policy
Valuation Period, Anniversary Date, or from one Policy Anniversary Date
Valuation Time, to the next, is called a Policy Year.
Register Date
The Monthly Charge Dates are the dates on which we
deduct monthly charges for this policy. The first
Monthly Charge Date is the Policy Date. Subsequent
Monthly Charge Dates are the same day of each month
thereafter.
Example: The Policy Date is June 10, 20X1. The
first Policy Anniversary Date is one
year later, June 10, 20X2. The period
from June 10, 20X1, through June 9,
20X2, is a Policy Year. The first
Monthly Charge Date is June 10, 20X1.
The next Monthly Charge Date is one
month later, July 10, 20X1.
The Issue Date is also shown in the Policy
Specifications. The Issue Date starts the
contestability and suicide periods. We discuss
contestability and suicide later in this Part.
A Valuation Date is any date on which the New York
Stock Exchange (or its successor) is open for
trading. A Valuation Period is the period of time
from the end of one Valuation Date to the end of the
next Valuation Date. A Valuation Time is the time the
New York Stock Exchange (or its successor) closes on
a Valuation Date. All actions that are to be
performed on a Valuation Date will be performed as of
the Valuation Time.
The Register Date is the date on which we first
allocate net premium payments for this policy among
the Guaranteed Principal Account and the divisions of
the Separate Account. It is the Valuation Date that
is on, or next follows, the later of:
. The day after the Issue Date; and
. The day we receive the first premium for
this policy at our Administrative Office.
Policy A Legal This policy is a legal contract between the Owner and
Contract us. The entire contract consists of the policy, which
includes the application and any rider(s) and
endorsement(s) the policy has. We have issued this
policy in return for the application and the payment
of the first premium. Any changes or waiver of its
terms must be in writing and signed by our Secretary
or an Assistant Secretary to be valid.
A copy of the initial application is attached to and
made a part of this policy. Any subsequent
applications requesting changes in the policy also
will become part of the contract; copies of any such
applications will be sent to the Owner for attachment
to the policy.
Policy Is Not This policy is "not participating," which means that
Participating no dividends are payable on this policy.
P5-99 Page 2
<PAGE>
Representations We rely on all statements made by or for either or
And both Insureds in the application(s). Legally, those
Contestability statements are considered to be representations and
not warranties. We can bring legal action to contest
the validity of this policy, or any policy change
requiring evidence of insurability, for any material
misrepresentation of a fact. To do so, however, the
misrepresentation must have been in the initial
application or in a subsequent application, and a
copy of that application must have been attached to
(or sent to the Owner for attachment to) and made a
part of this policy. The initial Policy
Specifications are attached to this policy when
issued. If a policy change is made, we will send to
the Owner any revised or additional Policy
Specifications for attachment to the policy.
Except for any policy change or reinstatement
requiring evidence of insurability, we cannot contest
the validity of this policy:
. With respect to any material misrepresentation in
the application regarding the insurability of
Insured No. 1, once the policy has been in force
during the lifetime of Insured No. 1 for two
years after its Issue Date; or
. With respect to any material misrepresentation in
the application regarding the insurability of
Insured No. 2, once the policy has been in force
during the lifetime of Insured No. 2 for two
years after its Issue Date.
For any policy change requiring evidence of
insurability, we cannot contest the validity of the
change with respect to each Insured after the change
has been in effect for two years during the lifetime
of that Insured.
If evidence of insurability is required to reinstate
this policy (see "Reinstating This Policy" in Part
4), our right to contest the validity of this policy
begins again on the date of reinstatement. For each
Insured living on that date, we cannot contest once
the reinstated policy has been in force during the
lifetime of that Insured for two years after that
reinstatement date.
Misstatement Of If the date of birth or gender of either Insured as
Age Or Gender given in the application is not correct, the Face
Amount (discussed in this Part) will be adjusted. The
adjustment will reflect the amount provided by the
most recent monthly insurance charges using the
correct ages and genders. If the adjustment is made
while either Insured is living, monthly charges after
the adjustment will be based on the correct ages and
genders.
Death By Suicide If either Insured commits suicide, while sane or
insane, within two years after the Issue Date of this
policy and while the policy is in force, this policy
will terminate. In this case, we will refund the
amount of premiums paid for this policy, less any
amounts withdrawn and less any policy debt.
If either Insured commits suicide, while sane or
insane, within two years after this policy is
reinstated and while the policy is in force, this
policy will terminate. In this case, we will refund
any amount paid to reinstate this policy and any
premiums paid thereafter, less any amounts withdrawn
and less any policy debt.
P5-99 Page 3
<PAGE>
If either Insured commits suicide, while sane or
insane, within two years after the effective date of
any increase in the Face Amount, the increase will
terminate. In this case, we will refund the monthly
charges made for that increase. However, if a refund
as described in either of the two preceding
paragraphs is payable, there will be no additional
refund for the increase.
Monthly charges are discussed in Part 3. Withdrawals,
policy debt, and reinstatement are discussed in Part
4.
Meaning Of "In force" means that the insurance provided by this
In Force policy is in effect and has not terminated. This
policy will be in force from its Issue Date or, if
later, the date the first premium is paid.
This policy will continue in force to the second
death unless:
. Either Insured commits suicide within two years
after the Issue Date or the date the policy is
reinstated;
. The policy terminates under the terms of the
Grace Period And Termination provision in Part 3;
. The policy terminates because the policy debt
limit is reached; or
. The policy is surrendered.
Policy debt and surrender are discussed in Part 4.
Meaning Of The "second death" under this policy means the death
Second Death of the survivor of the Insureds.
Simultaneous The Insureds may die at the same time, with no
Deaths reasonable way to determine who died first. In this
case, we will assume that Insured No. 2 died before
Insured No. 1. However, the Owner may provide
otherwise by written request while both Insureds are
living.
Face Amount The Face Amount is the amount of insurance coverage
this policy provides while the policy is in force.
The Initial Face Amount is the Face Amount on the
Policy Date.
Year Of Coverage For the Initial Face Amount, each Policy Year is a
year of coverage. If the Face Amount of this policy
has been increased (as discussed in Part 4), years of
coverage for each increase will be measured from the
effective date of the increase.
Ages - Issue Age, The Issue Age for each Insured (shown in the Policy
Attained Age Specifications) is the age of that Insured on the
birthday nearest the Policy Date.
Example: Elizabeth's 32nd birthday was May 12th.
The Policy Date is today, December 1.
Since December 1 is closer to her 33rd
birthday, her Issue Age will be 33.
The Attained Age of an Insured is the Insured's Issue
Age increased by the number of full Policy Years
elapsed.
Written Request A "written request" is a request in writing, in a
form satisfactory to us, received by us at our
Administrative Office.
Currency All payments made to us and by us will be in the
lawful currency of the United States of America. All
monetary amounts shown in this policy are in U.S.
dollars.
P5-99 Page 4
<PAGE>
Administrative Our Administrative Office is in Springfield,
Office Massachusetts. The address is C.M. Life Insurance
Company, 1295 State Street, Springfield,
Massachusetts 01111-0001.
Part 2. Premium Payments
Premiums are the payments that may be paid to us to increase the account value
of this policy; they also may be needed to keep this policy in force. Premiums
for this policy are discussed in this Part.
The First Premium The first premium for this policy is shown in the
Policy Specifications. It is due on the Policy Date.
This policy will not be in force until the first
premium has been paid.
Planned Premiums The planned premium for this policy is shown in the
Policy Specifications. The frequency of planned
premiums for this policy is as elected in the
application. The frequency and amount of the planned
premium may be changed by written request; the
frequency may be quarterly, semiannually, or
annually.
We also provide a pre-authorized payment plan. This
plan, and any other alternate premium plans we
provide, are governed by the rules we set.
If continued payment of the planned premium during a
Policy Year would exceed the Limit On Premium
Payments for the Year shown in the Policy
Specifications, we may decrease the planned premium
to an amount that would not exceed that limit.
If premium payments are discontinued, we will
continue to deduct monthly charges from the account
value and the policy will stay in force subject to
the Grace Period And Termination provision in Part 3.
Premium Flexibility After the first premium has been paid, there is no
And Premium Notices requirement that any amount of premium be paid on any
date. Subject to the Limit On Premium Payments shown
in the Policy Specifications and while this policy is
in force, any amount of premium may be paid at any
time while either Insured is living. However, each
premium paid must be at least $20 or, if greater, the
amount needed to prevent termination, as discussed in
the Grace Period And Termination provision.
We will send premium notices for the planned premium
based on the amount and frequency in effect. We will
stop sending notices for the planned premium upon
receipt of the Owner's written request to do so.
Where To Pay Premiums All premiums after the first premium are payable to
us at our Administrative Office or at the place shown
for payment on the premium notice. Upon request, a
receipt signed by our Secretary or an Assistant
Secretary will be given for any premium payment.
Right To Refund Premiums We have the right to refund any amount of premium
paid in a Policy Year that exceeds the Limit On
Premium Payments for the Year shown in the Policy
Specifications.
A Limit On Total Premium Payments also may be stated
in the Policy Specifications. If such a Limit is
stated, we will automatically refund the amount of
any premium paid that exceeds that Limit.
Net Premium A net premium is a premium payment we receive for
this policy less the premium expense charge we deduct
at that time. The Maximum Premium Expense Charge we
can deduct from each premium payment is shown in the
Policy Specifications.
P5-99 Page 5
<PAGE>
We credit each net premium to the account value of
this policy on the date we receive the premium
payment. However, for any premium payment received
before the Policy Date, the net premium will be
credited to the account value as of the Policy Date.
If the Face Amount of this policy has been increased
(as discussed in Part 4), premium payments received
once an increase becomes effective will be allocated
to each segment of the Face Amount. (The Initial Face
Amount is one "segment"; each increase in the Face
Amount is a separate "segment.") This may affect the
premium expense charge deducted from premium
payments. The premium allocation will be made on a
pro rata basis using the Premium Expense Factor for
each segment. The Premium Expense Factor for each
segment of the Face Amount is shown with its Table Of
Maximum Monthly Insurance Charges in the Policy
Specifications.
Example: The Initial Face Amount of your policy
is $500,000; the Premium Expense Factor
for it is 4,000. You later increase the
Face Amount by $700,000, to $1,200,000;
the Premium Expense Factor for that
increase is 6,000. The sum of the
Premium Expense Factors is 10,000.
Thereafter while the Face Amount remains
at $1,200,000, each premium payment will
be allocated 40% (4,000 divided by
10,000) to the Initial Face Amount and
60% (6,000 divided by 10,000) to the
increase.
Allocation Of Net Each net premium we receive on or before the Issue
Premiums Date will be allocated to our general investment
account. On the Register Date, any fixed value of
this policy will be allocated among the Guaranteed
Principal Account and the divisions of the Separate
Account, according to the net premium allocation in
effect on the Register Date. Fixed account value is
discussed in Part 3.
Each net premium we receive after the Issue Date will
be allocated according to the net premium allocation
in effect on the date of receipt.
The net premium allocation is specified at the time
of application for this policy. Changes in the net
premium allocation are subject to any limitations
stated in the Policy Specifications. Subject to those
limitations, the allocation may be changed by any
later election satisfactory to us and received at our
Administrative Office.
The amount of each net premium we receive for this
policy for allocation to a division of the Separate
Account will be applied to purchase accumulation
units for this policy in that division. See the
Purchase And Sale Of Accumulation Units provision in
Part 3.
Part 3. Accounts, Values, And Charges
This policy provides that certain values (referred to as the variable account
values) are based on the investment performance of the Separate Account and are
not guaranteed as to dollar amount. This policy also provides that other values
(referred to as the fixed account values) are based on the interest credited to
the Guaranteed Principal Account. The account value of this policy is the
variable account value plus the fixed account value. This Part gives information
about the Separate Account, the Guaranteed Principal Account, and the values and
monthly charges connected with them.
The Separate Account And The Guaranteed Principal
Account
The Separate The Separate Account shown in the Policy
Account Specifications is a designated segment of the
separate investment account we have established under
Connecticut law. It is also subject to the laws of
the state in which this policy was delivered.
The Separate Account has a number of divisions. Each
division invests in shares of an investment fund. The
divisions are shown in the Policy Specifications.
P5-99 Page 6
<PAGE>
The values of the assets in the divisions are
variable and are not guaranteed. They depend on the
investment results of the Separate Account shown in
the Policy Specifications.
We own the assets of the Separate Account. Those
assets will be used only to support variable life
insurance policies. That portion of the assets equal
to the reserves and other liabilities of the Separate
Account will not be charged with liabilities that
arise from any other business we may conduct.
However, we may transfer to our general account any
assets exceeding the reserves and other liabilities
of the Separate Account. The income and the realized
and unrealized capital gains and losses from each
division of the Separate Account are credited to or
charged against that division without regard to any
of our other income, capital gains, or capital
losses. The assets of the Separate Account are
protected from the claims of our creditors.
Changes In The We have the right to establish additional divisions
Separate Account of the Separate Account from time to time. Amounts
credited to any additional divisions established
would be invested in shares of other funds. For any
division, we have the right to substitute new funds.
We also have the rights to rename any division and to
close any division to new investments.
Subject to applicable provisions of federal
securities laws, we have the right to change the
investment policy of any division of the Separate
Account.
We have the right to operate the Separate Account as
a unit investment trust under the Investment Company
Act of 1940 or in any other form permitted by law.
Any changes in the Separate Account will be described
in the Prospectus for this policy.
Accumulation Units Accumulation units are used to measure the variable
account value of this policy. The value of a unit is
determined as of the Valuation Time on each Valuation
Date for valuation of the Separate Account. The value
of any unit can vary from Valuation Date to Valuation
Date. That value reflects the investment performance
of the division of the Separate Account applicable to
that unit. The value of accumulation units is
discussed further in Part 7.
Purchase And Sale Amounts are credited to and taken from divisions of
Of Accumulation Units the Separate Account by purchasing and selling
accumulation units. Accumulation units will be
purchased and sold at the unit value as of the
Valuation Time on the Valuation Date of purchase or
sale. The number of units purchased or sold will be
the amount of money for purchase or sale divided by
that unit value.
Example: The amount applied is $550. The date of
purchase is June 10, 20X1. The
accumulation unit value on that date is
$10. The number of units purchased
would be 55 ($550 divided by $10 = 55).
If, instead, the unit value was $11,
then the amount applied would purchase
50 units ($550 divided by $11 = 50).
If we receive a premium or a request that causes us
to purchase or sell accumulation units, and we
receive that premium or request before the Valuation
Time on a Valuation Date, accumulation units will be
purchased or sold as of that Valuation Date.
Otherwise, accumulation units will be purchased or
sold as of the next following Valuation Date.
In no case will accumulation units be purchased or
sold before the Register Date.
P5-99 Page 7
<PAGE>
The Guaranteed The Guaranteed Principal Account is part of our
Principal Account general investment account. It has no connection
with, and does not depend on, the investment
performance of the Separate Account. We have a right
to establish additional guaranteed accounts from time
to time.
Values Of This Policy
Account Value Of Policy The account value of this policy on any date is the
variable account value of this policy plus the fixed
account value of this policy, both determined as of
that date.
Variable Account The variable account value of this policy reflects:
Value Of Policy
. The net premiums for this policy allocated to the
Separate Account;
. Any amounts for this policy transferred into the
Separate Account from the Guaranteed Principal
Account;
. Any amounts transferred or withdrawn from the
Separate Account for this policy;
. Any surrender charges for this policy deducted
from the Separate Account due to any decreases in
the Face Amount;
. Any monthly charges for this policy deducted from
the Separate Account; and
. The net investment experience of the Separate
Account.
Net premiums, transfers, withdrawals, surrender
charges, and monthly charges are all reflected in the
variable account value through the purchase or sale
of accumulation units. The net investment experience
is reflected in the value of the accumulation units.
Net premiums are discussed in Part 2, and monthly
charges are discussed in this Part. Transfers,
withdrawals, and surrender charges are discussed in
Part 4.
The value of the accumulation units credited to this
policy in a division of the Separate Account is equal
to the accumulation unit value in that division on
the date the value is determined, multiplied by the
number of those units in that division.
The variable account value of this policy on any date
is the total of the values of the accumulation units
credited to this policy in each division of the
Separate Account.
Fixed Account Value The fixed account value of this policy is the
Of Policy accumulation at interest of:
. The net premiums for this policy allocated to our
general investment account and to the Guaranteed
Principal Account; plus
. Any amounts for this policy transferred into the
Guaranteed Principal Account from the Separate
Account; less
. Any amounts for this policy transferred or
withdrawn from the Guaranteed Principal Account;
less
. Any surrender charges for this policy deducted
from the Guaranteed Principal Account due to any
decreases in the Face Amount; and less
. Any monthly charges for this policy deducted from
the Guaranteed Principal Account.
Interest On Fixed The fixed account value of this policy earns interest
Account Value at an effective annual rate defined in this
provision. Interest is credited daily through the
date the fixed account value is computed.
For any fixed account value equal to the amount of
any policy loan, the interest rate we use will be the
daily equivalent of the greater of:
. The annual loan interest rate in effect during
the current Policy Year less the loan interest
rate expense charge; and
P5-99 Page 8
<PAGE>
. The Minimum Annual Interest Rate For The
Guaranteed Principal Account.
The loan interest rate is discussed in the Interest
On Loans provision in Part 4. The Maximum Loan
Interest Rate Expense Charge and the Minimum Annual
Interest Rate For The Guaranteed Principal Account
are shown in the Policy Specifications.
For any fixed account value in excess of the amount
of any policy loan, the interest rate we use will be
the daily equivalent of the greater of:
. The Minimum Annual Interest Rate For The
Guaranteed Principal Account; and
. An alternate annual rate established by us. The
alternate annual rate of interest will reflect
our expectations for future investment results,
profits, and expenses. This rate will be declared
for each calendar month in advance; once declared
for a month, it cannot be changed.
Monthly Policy Charges
Monthly Charges Charges will be deducted monthly from the account
value of this policy. Monthly charges are due on each
Monthly Charge Date.
Monthly charges for this policy will be taken from
the divisions of the Separate Account and from the
Guaranteed Principal Account in proportion to the
values of this policy in each of those divisions and
in the Guaranteed Principal Account (excluding
outstanding policy loans). Deductions will be made,
and values will be determined, on the Valuation Date
that is on, or next follows, the latest of:
. The Register Date;
. The date the charges are due; and
. The date we receive the amount of premium needed
to prevent termination, as discussed in the Grace
Period And Termination provision in this Part.
We assess four types of monthly charges: an
administrative charge, a face amount charge, an
insurance charge, and a rider charge; each is
discussed in this section.
Administrative The amount of the monthly administrative charge will
Charge be determined by us. However, it will not exceed the
Maximum Monthly Administrative Charge shown in the
Policy Specifications.
Face Amount Charge The amount of the monthly face amount charge will be
determined by us. However, it will not exceed the
result of:
. The Face Amount divided by 1,000; then multiplied
by
. The Maximum Monthly Face Amount Charge for the
year of coverage. These maximum charges are shown
in the Policy Specifications.
If the Face Amount of the policy has been increased
(as discussed in Part 4), the face amount charge for
each month will be the sum of the charges determined
separately for each segment of the Face Amount.
Insurance Charge The maximum monthly insurance charge rates per $1,000
of insurance risk are shown in the Table(s) Of
Maximum Monthly Insurance Charges of the Policy
Specifications. Maximum monthly insurance charge
rates for the Initial Face Amount and for each Face
Amount increase will be shown in separate tables.
The monthly insurance risk is computed as of the date
the charge is due. All amounts are calculated as of
that date. The insurance risk is determined by the
following steps.
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(a) We compute the account value of this policy after
all additions and deductions other than the
deduction of the insurance charge.
(b) We determine the amount of benefit under the
Death Benefit Option in effect. The minimum death
benefit used here is based on the account value
computed in (a). The amount of death benefit
under each Death Benefit Option and the minimum
death benefit are discussed in Part 5.
(c) We divide the amount of benefit determined in (b)
by an amount equal to 1 plus the decimal monthly
equivalent of the Minimum Annual Interest Rate
For The Guaranteed Principal Account shown in the
Policy Specifications.
(d) We subtract the account value, as computed in
(a), from the amount determined in (c). The
result is the monthly insurance risk.
If there are two or more tables of maximum monthly
insurance charges, the pro rata monthly insurance
risk allocated to each table will be based on the
proportionate amount of Face Amount for the table to
the total Face Amount. If the monthly insurance risk
is increased due to the minimum death benefit, the
table that applies to the most recent increase
requiring evidence of insurability will be used for
such increase.
Example: The Initial Face Amount of your policy is
$500,000. You later increase the Face Amount
by $250,000. The Death Benefit Option is 1,
and the benefit under Death Benefit Option 1
is $750,000. The pro rata portion of
insurance risk to be allocated to the table
for the Initial Face Amount is $500,000
divided by $750,000, or two-thirds. The pro
rata portion to be allocated to the table
for the increase is $250,000 divided by
$750,000, or one-third.
The monthly insurance risk is computed as
$600,000. The maximum monthly insurance
charge per $1,000 of insurance risk will be
based on the charge for an amount equal to
two-thirds of $600,000, or $400,000, from
the Initial Face Amount and an amount equal
to one-third of $600,000, or $200,000, from
the increase.
Suppose instead that the benefit under Death
Benefit Option 1 is $810,000 due to the
minimum death benefit and that the monthly
insurance risk is $660,000. Then the maximum
monthly insurance charge per $1,000 of
insurance risk will be based on the charge
for an amount equal to $400,000 from the
Initial Face Amount and an amount equal to
$260,000 from the increase ($200,000 plus
the $60,000 due to the minimum death
benefit).
We may charge less than the maximum monthly insurance
charges shown in the table(s). In this case, the
monthly insurance charge rates will be based on our
expectations for future mortality, investment,
persistency and expense results, and future profits.
The expense component of these rates is used to
offset sales and issue expenses, which decrease over
time. For each Insured, any change in these charges
will apply to all individuals in the same class.
Rider Charge The monthly rider charge is the sum of the monthly
charges for any riders in effect on the Monthly
Charge Date. The monthly charges for any rider are
shown in the Policy Specifications for the rider.
Grace Period This policy may terminate without value if its
And Termination account value on a Monthly Charge Date, less any
policy debt, cannot cover the monthly charges due and
the safety test is not met on that Date. However, we
allow a grace period for payment of the amount of
premium (not less than $20) needed to avoid
termination. The safety test is discussed in the next
provision.
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The grace period begins on the date the monthly
charges are due. It ends 61 days after that date or,
if later, 31 days after we mail a written notice to
the Owner and to any assignee shown in our records at
their last known addresses. This notice will state
the amount of premium needed to avoid termination.
During the grace period, the policy will stay in
force. If the second death occurs during the grace
period, any unpaid premium amount needed to avoid
termination will be deducted from the death benefit
(see the Amount Of Death Benefit provision in Part
5). The policy will terminate without value if we do
not receive payment of the required amount by the end
of the grace period.
While there is a loan outstanding on this policy, our
right to terminate this policy under the terms of the
Policy Debt Limit provision (see Part 4) applies in
addition to our right under this provision.
If the account value less policy debt on a Monthly
Charge Date cannot cover the monthly charges due, but
the safety test is met on that Date, then the monthly
charges for that Date will be reduced to an amount
equal to the account value on that Date (just before
the deduction) less any outstanding debt.
Safety Test The safety test can be met only during the First and
Second Guarantee Periods; each Guarantee Period is
associated with a Guarantee Premium. The First and
Second Guarantee Periods and the First and Second
Guarantee Premiums are shown in the Policy
Specifications.
For any day during the First Guarantee Period, the
safety test is met if the result of premiums paid
less any amounts withdrawn, accumulated with interest
to that day, equals or exceeds the result of payments
of the First Guarantee Premium from the Policy Date
to that day, accumulated with interest.
For any day after the First Guarantee Period but
during the Second Guarantee Period, the safety test
is met if premiums paid less any amounts withdrawn,
accumulated with interest to that day, equals or
exceeds the result of payments of the Second
Guarantee Premium from the Policy Date to that day,
accumulated with interest.
In the safety test, interest is accumulated at an
effective annual rate equal to the Minimum Annual
Interest Rate For The Guaranteed Principal Account,
which is shown in the Policy Specifications. In
accumulating premiums paid, we exclude any premium
amounts refunded under the Right To Refund Premiums
provision in Part 2. Also, we assume in this test
that Guarantee Premiums are paid on each Monthly
Charge Date.
Example: On the 6th Monthly Charge Date, the monthly
charges are $100, but the account value,
before the deduction for monthly charges, is
only $95. There is no policy debt. The
policy is in the First Guarantee Period, and
the First Guarantee Premium is $25. Premium
payments of $35 were made on each Monthly
Charge Date including the current one. There
were no withdrawals. In this case, the
safety test is met. So the monthly charges
for that 6th Monthly Charge Date are reduced
to $95, and the account value is reduced to
zero.
On the first Monthly Charge Date in the 21st
Policy Year, the monthly charges are $250,
but the account value, before the deduction
for monthly charges, is only $220. There are
no surrender charges and no policy debt. The
policy is in the Second Guarantee Period,
and the Second Guarantee Premium is $60.
Premium payments of $75 were made on each
Monthly Charge Date from the Policy Date
through the current
P5-99 Page 11
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Monthly Charge Date. There were no
withdrawals. In this case, the safety test
is met also. So the monthly charges for that
Monthly Charge Date are reduced to $220, and
the account value is reduced to zero.
Part 4. Life Benefits
This life insurance policy provides a death benefit if both Insureds die while
the policy is in force. Rights and benefits are also available while at least
one Insured is living. These "Life Benefits" are discussed in this Part.
Policy Ownership
Rights Of Owner While either Insured is living, the Owner
may exercise all rights given by this policy or
allowed by us. These rights include changing
Beneficiaries, changing ownership, assigning this
policy, enjoying all policy benefits, and exercising
all policy options.
The consent of any Irrevocable Beneficiary is needed
to exercise any policy right except the rights to:
. Change the frequency of planned premiums;
. Change the premium payment plan; and
. Reinstate this policy after termination.
Changing The Owner Or While either Insured is living, the Owner or any
Beneficiary Beneficiary may be changed by written request. We do
not limit the number of changes that may be made. The
change will take effect as of the date the request is
signed, even if the second death occurs before we
receive it. Each change will be subject to any
payment we made or other action we took before
receiving the written request.
Transfers Of Transfers of values are subject to the limitations
Values stated in the Policy Specifications.
Subject to those limitations, transfers of values may
be made upon direction, satisfactory to us, received
at our Administrative Office. These transfers are:
. Transfers of values between divisions of the
Separate Account. These transfers will be
made by selling all or part of the
accumulation units in a division and
applying the value of the sold units to
purchase units in any other division.
. Transfers of values from one or more
divisions of the Separate Account to the
Guaranteed Principal Account. These
transfers will be made by selling all or
part of the accumulation units in a division
and applying the value of the sold units to
the Guaranteed Principal Account.
. Transfers of values from the Guaranteed
Principal Account to one or more divisions
of the Separate Account. These transfers
will be made by applying all or part of the
value in the Guaranteed Principal Account
(excluding any outstanding policy loans) to
purchase accumulation units in one or more
divisions of the Separate Account.
Transfers will be made as of the Valuation Date
specified in the Purchase And Sale Of Accumulation
Units provision in Part 3. All transfers made on the
same Valuation Date will be considered one transfer.
Assigning This This policy may be assigned. However, for any
Policy assignment to be binding on us, we must receive a
signed copy of it at our Administrative Office. We
will not be responsible for the validity of any
assignment.
Once we receive a signed copy of an assignment, the
rights of the Owner and the interest of any
Beneficiary or any other person will be subject to
the assignment. An
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<PAGE>
assignment is subject to any policy debt. Policy debt
is discussed in the Right To Make Loans provisions in
this Part.
Annual Report Each year after the Policy Anniversary Date, we will
mail an annual report to the Owner. There will be no
charge for this report. This report will show the
account value at the beginning of the preceding
Policy Year and all premiums paid during that Year.
It also will show the additions to, and deductions
from, the account value during that Year, and the
account value, death benefit, net surrender value,
and policy debt as of the end of that Year.
The annual report also will include any additional
information required by applicable law or regulation.
Right To Change The Face Amount
While this policy is in force, the Face Amount may be
changed. Any change in the Face Amount will be
effective on a Monthly Charge Date. We may limit the
number and the size of the changes in a Policy Year.
Increases In The While both Insureds are living, the Face Amount of
Face Amount this policy may be increased upon written
application. Evidence of insurability, satisfactory
to us, is required for each increase. The amount of
each increase must be for at least the Minimum Face
Amount Increase shown in the Policy Specifications.
If the net surrender value is insufficient to
continue the changed policy in force for three months
at the new monthly charges and interest, we may
require a payment sufficient to increase the net
surrender value to such amount. Net surrender value
is discussed in the "Surrendering This Policy And
Making Withdrawals" section of this Part.
Any increase elected under any insurability
protection type of rider will be effective as
directed in that rider. Any other increase in the
Face Amount will be effective on the Monthly Charge
Date that is on, or precedes, the date we approve the
application.
Insurance charges for each increase elected are
determined and deducted from the account value of
this policy as described in the Monthly Charges
provision in Part 3. These charges will be deducted
from the account value beginning on the effective
date of the increase. Additional surrender charges
(discussed later in the Net Surrender Value provision
in this Part) will apply for each increase elected.
No increase in the Face Amount will be permitted
after the Policy Anniversary Date nearest the younger
Insured's 85th birthday or, if earlier, the Policy
Anniversary Date nearest the older Insured's 90th
birthday.
Decreases In The After the first Policy Year, the Face Amount may be
Face Amount decreased by the Owner's written request while either
Insured is living. However, the decrease must not
reduce the Face Amount to an amount less than the
Minimum Face Amount shown in the Policy
Specifications. No decrease is permitted within one
year following the effective date of any increase.
Any decrease is effective on the Monthly Charge Date
that is on, or precedes, the date we receive the
written request. If a decrease follows one or more
increases, the decrease is taken from the most recent
increase(s).
Any surrender charge due upon a decrease in the Face
Amount is deducted from the account value on the
effective date of the decrease. The charge is
deducted from each division of the Separate Account
and from the Guaranteed Principal Account in
P5-99 Page 13
<PAGE>
proportion to the values of this policy in each of
those divisions and in the Guaranteed Principal
Account (excluding any outstanding policy loans) on
that date. Surrender charges are discussed in the Net
Surrender Value provision in this Part.
Evidence Of If the Face Amount is changed, we will send the Owner
Changes any revised and additional Policy Specifications for
attachment to this policy. If the Face Amount is
increased, we will also send a copy of the
application for the increase. However, we have the
right to require that the policy be sent to us to
make the change.
Borrowing Against This Policy
Right To Make Loans Once the account value exceeds any surrender charges
that apply, the Owner may borrow against this policy
after the first Policy Year, while either Insured is
living. However, the policy must be properly assigned
to us before the loan is made. No other collateral is
needed. We refer to all outstanding loans plus
accrued interest as "policy debt."
Effect Of Loan A loan is attributed to each division of the Separate
Account and to the Guaranteed Principal Account in
proportion to the values of this policy in each of
those divisions and in the Guaranteed Principal
Account (excluding any outstanding policy loans) at
the time of the loan. The amount of the loan
attributed to each division of the Separate Account
will be transferred to the Guaranteed Principal
Account. Any such transfer is made by selling
accumulation units in the division and applying the
value of those units to the Guaranteed Principal
Account on the date the loan is made. Any interest
added to the loan will be treated as a new loan under
this provision.
The amount equal to any outstanding policy loans will
be held in the Guaranteed Principal Account and will
earn interest as described in the Interest On Fixed
Account Value provision in Part 3.
Maximum Loan The maximum amount that can be borrowed on any date
Available is determined as follows.
(1) We subtract from the account value any
surrender charges that would apply if the
policy were surrendered on that date.
(2) We calculate 90% of the amount determined in
(1).
(3) We subtract any existing policy debt from
the amount determined in (2). The result is
the maximum amount that can be borrowed.
Interest On Loans Interest on loans is not due in advance. This
interest accrues (builds up) each day and becomes
part of the policy debt as it accrues.
Interest is due on each Policy Anniversary Date. If
interest is not paid when due, it will be added to
the loan and will bear interest at the rate payable
on the loan.
Example: You have a loan of $1,000. The interest due
on the next Policy Anniversary Date is $50.
If it is not paid on that date, we will add
it to the existing loan. From then on, the
loan will be $1,050 and interest will be
charged on this new amount.
The type of interest rate on any policy loan is
elected at the time of application for this policy
and cannot be changed; the type elected for this
policy is shown in the Policy Specifications. The two
types of interest rates available are:
(1) A fixed loan rate of 4% per year; and
P5-99 Page 14
<PAGE>
(2) A variable loan rate. Such loan rate is an
annual rate set by us. This rate may change from
year to year. Each year we will set the rate
that will apply for the next Policy Year. The
rate will apply to all policy debt under this
policy.
Each year there is a maximum limit on the
variable loan interest rate we can set. That
limit is based on a Published Monthly Average.
That Average will be:
. The Monthly Average Corporates yield shown in
Moody's Corporate Bond Yield Averages, as
published by Moody's Investors Service, Inc.,
or any successor to that service; or
. If that Monthly Average is no longer
published, a substantially similar average,
established by the insurance supervisory
official of the state where this policy was
delivered.
The maximum limit is the Published Monthly
Average for the calendar month ending two months
before the month in which the Policy Year begins
or, if higher, the Minimum Annual Interest Rate
For The Guaranteed Principal Account plus 1%.
Example: A Policy Year begins on June 10, 20X1.
The calendar month ending two months
before June is March. The loan interest
rate for the Policy Year beginning June
10, 20X1, will not be greater than the
Published Monthly Average for March,
20X1. However, if that Average is lower
than the Minimum Annual Interest Rate
For The Guaranteed Principal Account
plus 1%, then the maximum loan interest
rate for that Policy Year will be equal
to the Minimum Annual Interest Rate For
The Guaranteed Principal Account plus
1%.
If the maximum limit for a Policy Year is at
least 1/2% higher than the loan interest rate in
effect for the preceding Year, we may increase
the rate to a rate not higher than that limit.
If the maximum limit for a Policy Year is at
least 1/2% lower than the loan interest rate in
effect for the preceding Year, we must decrease
the rate to a rate not exceeding that limit.
Policy Debt Limit Policy debt (which includes accrued interest) may not
equal or exceed the account value less any surrender
charges that apply. If this limit is reached, we can
terminate this policy. To terminate for this reason,
we must mail written notice to the Owner and any
assignee shown in our records at their last known
addresses. This notice will state the amount needed
to bring the policy debt back within the limit. If we
do not receive payment within 31 days after the date
we mail the notice, the account value will be reduced
by any surrender charges that apply and this policy
will terminate without value at the end of those 31
days.
Our right to terminate this policy under the terms of
this provision applies in addition to our right under
the Grace Period And Termination provision in Part 3.
Repayment Of All or part of any policy debt may be repaid at any
Policy Debt time while either Insured is living. However, policy
debt can be repaid only while this policy is in
force. Loan repayments will be credited on the date
we receive them at our Administrative Office.
Any repayment of policy debt will be allocated first
to the Guaranteed Principal Account up to the amount
of the policy loan that was attributed to the
Guaranteed Principal Account. (For this purpose, no
amount of policy loan resulting from unpaid loan
interest will be considered to be attributed to the
Guaranteed Principal Account.) Any repayment in
excess of that amount will be allocated among the
Guaranteed Principal
P5-99 Page 15
<PAGE>
Account and the divisions of the Separate Account
according to the net premium allocation then in
effect.
Loan repayments must be clearly identified as such;
otherwise, they will be considered premium payments.
Other Borrowing Rules We may delay the granting of any loan attributable to
the Guaranteed Principal Account for up to six
months.
We may delay the granting of any loan attributable to
the Separate Account during any period that:
. The New York Stock Exchange (or its successor) is
closed, except for normal weekend or holiday
closing, or trading is restricted; or
. The Securities and Exchange Commission (or its
successor) determines that a state of emergency
exists; or
. The Securities and Exchange Commission (or its
successor) permits us to delay payment for the
protection of our policy owners.
Surrendering This Policy And Making Withdrawals
Right To Surrender This policy may be surrendered for its net surrender
value (see next provision) at any time while the
policy is in force and either Insured is living. The
surrender will be effective on the date we receive
your written request to surrender. This policy will
terminate as of the date of surrender.
Net Surrender The net surrender value of this policy is equal to
Value the account value less any surrender charges that
apply and less any policy debt. The surrender charge
for this policy is the sum of the surrender charges
for the Initial Face Amount and all Face Amount
increases. These charges are shown in the Table(s) Of
Surrender Charges of the Policy Specifications. In no
event will the net surrender value be less than zero.
Making After the first Policy Year, withdrawals may be made
Withdrawals while the policy is in force through Attained Age 99
of the younger Insured.
We need a written request for a withdrawal. The
request must state the Account (or Accounts) from
which the withdrawal will be made. For any withdrawal
from the Separate Account, the request also must
state the division (or divisions) from which the
withdrawal will be made. A withdrawal will be
effective on the date we receive the written request.
On the date of a withdrawal, the account value of
this policy is reduced by the amount of the
withdrawal. The withdrawal amount includes the
withdrawal fee. The Maximum Withdrawal Fee that can
be taken with each withdrawal is shown in the Policy
Specifications.
A withdrawal from the Guaranteed Principal Account
will be made by reducing the value in that Account to
provide the amount of the withdrawal. A withdrawal
from a division of the Separate Account will be made
by selling a sufficient number of accumulation units
to provide the amount of the withdrawal.
The Face Amount will be decreased by the amount of
the withdrawal if:
. Death Benefit Option 1 or Death Benefit Option 3
is in effect, as described in the Death Benefit
Options provision in Part 5; and
. We have not received evidence of insurability
satisfactory to us.
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In this case, the decrease will be effective on the
date of the withdrawal. If this decrease follows one
or more Face Amount increases, the decrease is taken
from the most recent increase(s).
Withdrawals will be subject to the following limits:
. The minimum amount of a withdrawal (including the
withdrawal fee) is $100;
. The maximum amount of a withdrawal on any date is
75% of the net surrender value of this policy on
that date; and
. The Face Amount after a withdrawal must not be less
than the Minimum Face Amount shown in the Policy
Specifications.
Example: Death Benefit Option 1 is in effect and
you make a withdrawal without
furnishing us satisfactory evidence of
insurability. Prior to your withdrawal,
your policy has a Face Amount of
$600,000 and an account value of
$120,000. If you make a withdrawal of
$30,000, the account value will be
reduced to $90,000, the Face Amount
will be reduced to $570,000, and
$29,975 will be paid to you.
If the Face Amount is reduced due to a withdrawal, we
will send the Owner any revised Policy Specifications
for attachment to this policy. However, we have the
right to require that the policy be sent to us to
make the changes.
How We Pay Any withdrawal made will be paid in one sum. If the
policy is surrendered, the net surrender value may be
paid in one sum or it may be applied under any
payment option elected. See Part 6.
We may delay paying any surrender or withdrawal from
the Guaranteed Principal Account for up to six months
from the date we receive the written request.
We may delay paying any surrender or withdrawal from
the Separate Account during any period that:
. The New York Stock Exchange (or its successor) is
closed, except for normal weekend or holiday
closing, or trading is restricted; or
. The Securities and Exchange Commission (or its
successor) determines that a state of emergency
exists; or
. The Securities and Exchange Commission (or its
successor) permits us to delay payment for the
protection of our policy owners.
If we delay paying any surrender or withdrawal,
interest will be added. The amount of interest will
be the same as would be paid for the same period of
time under Option 3 of the payment options or, if
greater, the amount using the minimum interest rate
for this purpose required by the laws of the state
where this policy was delivered. See Part 6 for a
description of Option 3.
Reinstating This Policy
When Policy May After this policy has terminated, it may be
Be Reinstated reinstated -- that is, put back in force. However,
the policy may not be reinstated:
. If it has been surrendered for its net surrender
value; or
. More than five years after the date of termination;
or
. After the Policy Anniversary Date nearest the
younger Insured's 100th birthday; or
. If an Insured has died since the date of
termination.
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Requirements To A written application and evidence of insurability
Reinstate satisfactory to us is required to reinstate. Also, a
premium is required as a cost to reinstate. This cost
is the amount of premium needed to keep the policy in
force for three months after reinstatement. This
amount will be quoted on request.
Policy After The policy will be reinstated on the Monthly Charge
Reinstatement Date that is on, or precedes, the date we approve the
application. The Face Amount on the date of
reinstatement will be the Face Amount on the
termination date. The account value on the date of
reinstatement will be the reinstatement premium paid,
less any premium expense charge and less any monthly
charges due on that date.
Upon reinstatement of this policy, the Table(s) Of
Surrender Charges (shown in the Policy
Specifications) will apply as though the policy had
not terminated. However, if the surrender charge was
taken when this policy terminated, then the
applicable surrender charges will not be reinstated.
Our rights to contest the validity of, and terminate,
this policy begin again on the date of reinstatement.
See the Representations And Contestability and Death
By Suicide provisions in Part 1.
Part 5. The Death Benefit
The death benefit is the amount of money we will pay when we receive due proof
at our Administrative Office that both Insureds died while the policy was in
force. We discuss the death benefit in this Part.
When the first death occurs, we will not pay a death benefit. However, due proof
of each Insured's death must be furnished to us at our Administrative Office
when it occurs.
Amount Of Death If both Insureds die while this policy is in force,
Benefit the death benefit will be the amount of benefit
provided by the Death Benefit Option in effect on the
date of the second death, reduced by any policy debt
outstanding on that date of death and any unpaid
premium amount needed to avoid termination under the
Grace Period And Termination provision in Part 3.
Death Benefit Three Death Benefit Options, described here, are
Options available under this policy. The Death Benefit Option
and the Face Amount in effect for this policy are
shown in the Policy Specifications. The minimum death
benefit is discussed in the next provision.
Death Benefit Option 1 - Under this Option, the
amount of benefit is the greater of:
. The Face Amount in effect on the date of the
second death; and
. The minimum death benefit in effect on the date
of the second death.
Death Benefit Option 2 - Under this Option, the
amount of benefit is the greater of:
. The Face Amount in effect on the date of the
second death plus the account value on that date;
and
. The minimum death benefit in effect on the date
of the second death.
Death Benefit Option 3 - Under this Option, the
amount of benefit is the greater of:
. The Face Amount in effect on the date of the
second death plus the sum of all premiums paid
(and not refunded under the Right To Refund
Premiums provision in Part 2) to that date; and
. The minimum death benefit in effect on the date
of the second death.
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Minimum Death The minimum death benefit on any date is equal to the
Benefit account value on that date multiplied by the Death
Benefit Factor for the younger Insured's Attained Age
on that date. The Death Benefit Factor for each
Attained Age is shown in the Policy Specifications.
Changes In The After the first Policy Year, the Death Benefit Option
Death Benefit may be changed upon written request while both
Option Insureds are living. However, the Death Benefit
Option may not be changed after the Policy
Anniversary Date nearest the younger Insured's 85th
birthday or, if earlier, the Policy Anniversary Date
nearest the older Insured's 90th birthday.
A change in the Death Benefit Option will be
effective on the Monthly Charge Date that is on, or
precedes, the date we approve the change.
When the Death Benefit Option is changed, the Face
Amount of this policy also changes on the effective
date of the change as follows (all amounts are as of
the date of change):
. Option 1 to Option 2: Decreased by an amount
equal to the account value;
. Option 1 to Option 3: Decreased by an amount
equal to the sum of all premiums paid (and not
refunded);
. Option 2 to Option 1: Increased by an amount
equal to the account value;
. Option 2 to Option 3: Decreased by an amount
equal to the sum of all premiums paid (and not
refunded), and then increased by an amount equal
to the account value;
. Option 3 to Option 1: Increased by an amount
equal to the sum of all premiums paid (and not
refunded);
. Option 3 to Option 2: Increased by an amount
equal to the sum of all premiums paid (and not
refunded), and then decreased by an amount equal
to the account value.
A change in the Death Benefit Option may follow one
or more increases in the Face Amount of this policy.
In this case, the change will:
. If the Face Amount increases, increase the most
recent increase, and
. If the Face Amount decreases, decrease the most
recent increase(s).
No change in Death Benefit Option will be allowed if
the Face Amount after the change would be less than
the Minimum Face Amount shown in the Policy
Specifications.
We may require a written application and evidence of
insurability satisfactory to us for any Death Benefit
Option change. We also may limit the number of Death
Benefit Option changes in any Policy Year.
If the Death Benefit Option or the Face Amount is
changed, we will send the Owner any revised Policy
Specifications for attachment to this policy.
However, we have the right to require that the policy
be sent to us to make the changes.
When We Pay The death benefit will be paid within 30 days after
the date we receive due proof that both Insureds
died, and any other requirements necessary for us to
make payment, at our Administrative Office.
Interest On If the death benefit is paid in one sum, we will add
Death Benefit interest from the date of the second death to the
date of payment. The amount of interest will be
computed using an effective annual rate not less than
3% or, if greater, the annual rate required by
applicable law.
If the death benefit is applied under a payment
option (described in Part 6), interest will be paid
from the date of the second death to the effective
date of that option. It will be
P5-99 Page 19
<PAGE>
paid in one sum to the Beneficiary living on that
effective date. The amount of interest will be
computed using an effective annual rate not less than
3% or, if greater, the annual rate required by
applicable law.
Part 6. Payment Options
These are optional methods of settlement. These methods provide alternate ways
in which payment can be made by us.
Availability Of All or part of the death benefit or net surrender
Options value may be applied under any payment option. If
this policy is assigned, any amount due to the
assignee will be paid in one sum. The balance, if
any, may be applied under any payment option.
Minimum Amounts If the amount to be applied under any option for any
one person is less than $5,000, we may pay the amount
in one sum instead. If the payments under any option
come to less than $50 each, we have the right to make
payments at less-frequent intervals.
Description Of Our regular payment options are Options 1 through 6.
Options They are described in terms of monthly payments.
Annual, semiannual, or quarterly payments may be
requested instead. The Payment Option Rates tables
are shown after Part 7.
Option 1 Installments For A Specified Period. Equal monthly
payments will be made for any period selected, up to
30 years. The amount of each payment depends on the
total amount applied, the period selected, and the
monthly income rates we are using when the first
payment is due. See the "Option 1. Installments For A
Specified Period" table for the minimum monthly
income rates.
Option 2 Life Income. Equal monthly payments will be based on
the life of a named person. Payments will continue
for the lifetime of that person. Income with or
without a minimum payment period may be elected. This
benefit may be increased by the Alternate Life Income
provision (in this Part). Proof of the named person's
age, satisfactory to us, will be required. See the
"Option 2. Life Income" tables for the minimum
monthly income rates.
Option 3 Interest. We will hold any amount applied under this
option. Interest on the amount will be paid at an
effective annual rate determined by us. This rate
will not be less than 3%.
Option 4 Installments Of Specified Amount. Each payment will
be made for an agreed fixed amount. The total amount
paid during the first year must be at least 6% of the
total amount applied. Interest will be credited each
month on the unpaid balance and added to it. This
interest will be at an effective annual rate
determined by us, but not less than 3%. Payments
continue until the balance we hold is reduced to an
amount less than the agreed fixed amount. The last
payment will be for the balance only.
Option 5 Life Income With Payments Guaranteed For Amount
Applied. Equal monthly payments will be based on the
life of a named person. Payments will be made until
the total amount paid equals the amount applied, and
as long thereafter as the named person lives. This
benefit may be increased by the Alternate Life Income
provision (in this Part). Proof of the named person's
age, satisfactory to us, will be required. See the
"Option 5. Life Income With Payments Guaranteed For
Amount Applied" tables for the minimum monthly income
rates.
Option 6 Joint Life Income With Reduced Payments To Survivor.
Monthly payments will be based on the lives of two
named persons. Payments at the initial level will
continue while both are living or for 10 years if
longer. When one dies (but not before the 10
P5-99 Page 20
<PAGE>
years has elapsed), payments are reduced by one-third
and will continue at that level for the lifetime of
the other. After the 10 years has elapsed, payments
stop when both named persons have died. This benefit
may be increased by the Alternate Life Income
provision (in this Part). Proof of the named persons'
ages, satisfactory to us, will be required. See the
"Option 6. Joint Life Income With Reduced Payments To
Survivor" tables for the minimum monthly income
rates.
Alternate Life If Option 2, 5, or 6 is elected, the named person(s)
Income can elect to receive an alternate life income instead
of receiving income based on the rates shown in the
Payment Option Rates tables. The election must be
made at the time the income is to begin. The monthly
alternate life income will be at least equal to the
monthly income provided by a new single premium
immediate annuity (first payment immediate), based on
our published rates then in use when the payment
option is elected. The alternate life income will not
be available if we are not offering new single
premium immediate annuities at the time of election.
Electing A To elect any payment option, we require a written
Payment Option request. The Owner may elect an option during either
Insured's lifetime. If the death benefit is payable
in one sum when the second death occurs, the
Beneficiary may elect an option with our consent.
Effective Date The effective date of a payment option is the date
And Payment the amount is applied under that option. For a death
Dates benefit, this is the date that due proof of the
deaths of both Insureds has been received at our
Administrative Office. For the net surrender value,
it is the effective date of surrender.
The first payment is due on the effective date,
except the first payment under Option 3 is due one
month later. A later date for the first payment may
be requested in the payment option election. All
payment dates will fall on the same day of the month
as the first one. No payment will become due until a
payment date. No part payment will be made for any
period shorter than the time between payment dates.
Example: Monthly payments of $100 are being made
to your son on the 1st of each month.
He dies on the 10th. No part payment
is due your son or his estate for the
period between the 1st and the 10th.
Withdrawals And If provided in the payment option election, all or
Changes part of the unpaid balance under Option 3 or 4 may be
withdrawn or applied under any other option.
If the net surrender value is applied under Option 3
or 4, we may delay payment of any withdrawal for up
to six months. In this case, interest at the rate in
effect for Option 3 during this period will be paid
on the amount withdrawn.
Income Protection To the extent permitted by law, each option payment
and any withdrawal shall be free from legal process
and the claim of any creditor of the person entitled
to them. No option payment and no amount held under
an option can be taken or assigned in advance of its
payment date, unless the Owner's written consent is
given before the second death. This consent must be
received at our Administrative Office.
Other Payment Options for any amount payable to an association,
Option Rules corporation, partnership, or fiduciary are available
only with our consent. However, a corporation or
partnership may apply any amount payable to it under
Option 2, 5, or 6 if the option payments are based on
the life or lives of an Insured, an Insured's spouse,
any child of an Insured, or any other person agreed
to by us.
If a minimum payment period is elected under Options
1, 2, 5, and 6, the effective annual interest rate
will not be less than 3%. This does not apply when an
alternate life income is elected.
P5-99 Page 21
<PAGE>
If a minimum payment period is elected, after the
first payment is made we may increase the payments to
reflect any additional interest earnings determined
by us. This does not apply when an alternate life
income is elected.
If the income that would be payable under a given
payment option is the same for 2 or more periods of
time at a given age, we automatically will pay income
for the longest period.
Example: You choose Option 2. You are 50 years old.
The Payment Option Rate (for Option 2) is
$3.64 for 5 years. The Payment Option Rate
for 10 years is also $3.64. We will pay
income for at least 10 years, which is the
longest period.
Part 7. Notes On Our Computations
This Part covers some technical points about this policy.
Net Investment For each division of the Separate Account, the Net
Factor Investment Factor for any Valuation Period is the
gross investment rate for that period plus 1.00000000
and minus a Separate Account charge for mortality and
expense risk. This Separate Account charge will not
exceed .00001639 for each day of a Valuation Period.
The Net Investment Factor may be greater or less than
1.00000000.
For each division of the Separate Account, the gross
investment rate for any Valuation Period is equal to:
. The net earnings of that division during the
Valuation Period; divided by
. The value of the total assets of that division at
the beginning of the Valuation Period.
The net earnings of each division are equal to the
accrued investment income and capital gains and
losses (realized and unrealized) of that division
reduced by any investment management fees and any
other expenses, and by any amount charged against
that division for taxes paid or reserved by us.
The gross investment rate will be determined by us in
accordance with generally accepted accounting
principles and applicable laws, rules and
regulations. This determination shall be conclusive
upon the Owner, the Insureds, any Beneficiary, any
assignee, and any other person under this policy.
Accumulation Unit The value of an accumulation unit in each division
Value was set at $1.000000 on the first Valuation Date
selected by us. The value on any date thereafter is
equal to the product of the Net Investment Factor for
that division for the Valuation Period that includes
that date and the accumulation unit value on the
preceding Valuation Date.
Adjustment Of Units We have the right to split or consolidate the number
And Values of accumulation units credited to the policy, with a
corresponding increase or decrease in the unit
values. We may exercise this right whenever we
consider an adjustment of units to be desirable.
However, strict equity will be preserved in making
any adjustment. No adjustment will have any material
effect on the benefits, provisions, or investment
return of this policy, or on the Owner, an Insured,
any Beneficiary, any assignee or other person, or on
us.
P5-99 Page 22
<PAGE>
Basis Of The basis of computation consists of the mortality
Computation rates and interest rates we use to determine:
. The minimum net surrender values;
. The maximum monthly insurance charges;
. The minimum rate used to credit interest on the
fixed account value of the policy; and
. The minimum payments under payment Options 2, 5,
and 6.
The mortality rates for the minimum net surrender
values and for the maximum monthly insurance charges
are shown in each Table Of Maximum Monthly Insurance
Charges. The Minimum Annual Interest Rate For The
Guaranteed Principal Account used to credit interest
on the fixed account value of the policy is shown in
the Policy Specifications. The mortality tables
specified apply to amounts in a standard risk
classification. Appropriate modifications are made to
these tables for any amount that is in a less
favorable risk classification.
In computing the minimum payments under payment
Options 2, 5, and 6, we use mortality rates from the
1983 Table "a" with Projection G for 32 years. The
interest rate used is an annual rate of 3%.
Method Of When required by the state where this policy was
Computing Values delivered, we filed a detailed statement of the
method we use to compute the policy benefits and
values. These benefits and values are not less than
those required by the laws of that state.
P5-99 Page 23
<PAGE>
------------------------------------------------------
OPTION 1. INSTALLMENTS FOR
A SPECIFIED PERIOD -
PAYMENT OPTION RATES
------------------------------------------------------
MONTHLY INCOME PER
$1,000 OF AMOUNT APPLIED
------------------------------------------------------
Years Monthly Income
1 $ 84.47
2 42.86
3 28.99
4 22.06
5 17.91
6 15.14
7 13.16
8 11.68
9 10.53
10 9.61
11 8.86
12 8.24
13 7.71
14 7.26
15 6.87
16 6.53
17 6.23
18 5.96
19 5.73
20 5.51
21 5.32
22 5.15
23 4.99
24 4.84
25 4.71
26 4.59
27 4.47
28 4.37
29 4.27
30 4.18
------------------------------------------------------
The first income payment is payable
on the effective date of this Option.
------------------------------------------------------
P5-99 Page 24
<PAGE>
- --------------------------------------------------------------------------------
OPTION 2. LIFE INCOME - PAYMENT OPTION RATES
OPTION 5. LIFE INCOME WITH PAYMENTS GUARANTEED FOR AMOUNT
APPLIED - PAYMENT OPTION RATES
- --------------------------------------------------------------------------------
MONTHLY LIFE INCOME PER $1,000 OF AMOUNT APPLIED
MALE
- --------------------------------------------------------------------------------
5 YEARS 10 YEARS 20 YEARS AMOUNT
AGE* LIFE ONLY MINIMUM MINIMUM MINIMUM APPLIED
- --------------------------------------------------------------------------------
50 $3.94 $3.93 $3.91 $3.84 $3.82
51 4.00 3.99 3.97 3.89 3.87
52 4.07 4.06 4.04 3.94 3.93
53 4.14 4.13 4.10 4.00 3.98
54 4.21 4.20 4.17 4.06 4.05
55 4.29 4.28 4.25 4.11 4.11
56 4.37 4.36 4.32 4.17 4.17
57 4.45 4.44 4.40 4.23 4.24
58 4.54 4.53 4.49 4.30 4.32
59 4.64 4.63 4.58 4.36 4.39
60 4.75 4.73 4.67 4.42 4.47
61 4.86 4.84 4.77 4.49 4.55
62 4.97 4.95 4.88 4.56 4.64
63 5.10 5.07 4.99 4.62 4.73
64 5.23 5.20 5.11 4.69 4.83
65 5.38 5.34 5.23 4.75 4.93
66 5.53 5.49 5.36 4.82 5.04
67 5.69 5.64 5.49 4.88 5.15
68 5.87 5.81 5.63 4.94 5.27
69 6.05 5.98 5.77 5.00 5.39
70 6.25 6.17 5.92 5.06 5.52
71 6.46 6.36 6.07 5.11 5.66
72 6.68 6.56 6.23 5.16 5.80
73 6.91 6.78 6.39 5.21 5.95
74 7.16 7.00 6.56 5.25 6.10
75 7.43 7.24 6.73 5.29 6.27
76 7.71 7.50 6.90 5.33 6.44
77 8.02 7.76 7.07 5.36 6.63
78 8.35 8.04 7.25 5.39 6.82
79 8.70 8.33 7.42 5.41 7.02
80 9.07 8.64 7.60 5.43 7.23
81 9.47 8.96 7.77 5.45 7.46
82 9.89 9.29 7.94 5.46 7.69
83 10.35 9.64 8.10 5.48 7.93
84 10.83 10.00 8.26 5.48 8.19
85 11.35 10.37 8.41 5.49 8.46
- --------------------------------------------------------------------------------
Rates for other ages are available upon request.
*Age on birthday nearest the due date of the first payment.
The first income payment is payable on the effective date of this Option.
- --------------------------------------------------------------------------------
P5-99 Page 25
<PAGE>
- --------------------------------------------------------------------------------
OPTION 2. LIFE INCOME - PAYMENT OPTION RATES
OPTION 5. LIFE INCOME WITH PAYMENTS GUARANTEED FOR AMOUNT
APPLIED - PAYMENT OPTION RATES
- --------------------------------------------------------------------------------
MONTHLY LIFE INCOME PER $1,000 OF AMOUNT APPLIED
FEMALE
- --------------------------------------------------------------------------------
5 YEARS 10 YEARS 20 YEARS AMOUNT
AGE* LIFE ONLY MINIMUM MINIMUM MINIMUM APPLIED
- --------------------------------------------------------------------------------
50 $3.64 $3.64 $3.63 $3.60 $3.58
51 3.69 3.69 3.68 3.63 3.63
52 3.74 3.74 3.73 3.69 3.67
53 3.80 3.80 3.79 3.74 3.72
54 3.86 3.85 3.84 3.79 3.77
55 3.92 3.91 3.90 3.84 3.83
56 3.98 3.98 3.96 3.90 3.88
57 4.05 4.04 4.03 3.95 3.94
58 4.12 4.12 4.10 4.01 4.00
59 4.20 4.19 4.17 4.07 4.07
60 4.28 4.27 4.25 4.14 4.13
61 4.36 4.36 4.33 4.20 4.20
62 4.45 4.45 4.42 4.27 4.28
63 4.55 4.54 4.51 4.34 4.36
64 4.65 4.64 4.60 4.41 4.44
65 4.76 4.75 4.70 4.48 4.53
66 4.88 4.86 4.81 4.55 4.62
67 5.00 4.99 4.92 4.62 4.71
68 5.14 5.12 5.04 4.69 4.82
69 5.28 5.26 5.17 4.76 4.92
70 5.44 5.41 5.30 4.83 5.04
71 5.60 5.57 5.45 4.90 5.16
72 5.78 5.74 5.59 4.97 5.28
73 5.97 5.92 5.75 5.03 5.42
74 6.18 6.12 5.91 5.09 5.56
75 6.40 6.33 6.08 5.15 5.71
76 6.64 6.55 6.26 5.20 5.87
77 6.90 6.79 6.44 5.25 6.04
78 7.18 7.04 6.63 5.29 6.21
79 7.48 7.31 6.82 5.33 6.40
80 7.80 7.60 7.01 5.36 6.59
81 8.14 7.90 7.21 5.39 6.80
82 8.52 8.22 7.40 5.41 7.01
83 8.92 8.56 7.60 5.43 7.24
84 9.36 8.92 7.78 5.45 7.48
85 9.83 9.29 7.96 5.47 7.73
- --------------------------------------------------------------------------------
Rates for other ages are available upon request.
*Age on birthday nearest the due date of the first payment.
The first income payment is payable on the effective date of this Option.
- --------------------------------------------------------------------------------
P5-99 Page 26
<PAGE>
- --------------------------------------------------------------------------------
OPTION 6. JOINT LIFE INCOME WITH REDUCED PAYMENTS
TO SURVIVOR - PAYMENT OPTION RATES
- --------------------------------------------------------------------------------
MONTHLY LIFE INCOME PER $1,000 OF AMOUNT APPLIED
MALE & FEMALE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MALE FEMALE IS YOUNGER THAN MALE BY:
---------------------------------------------------------------------------------------------------------
AGE* 10 Yrs. 9 Yrs. 8 Yrs. 7 Yrs. 6 Yrs. 5 Yrs. 4 Yrs. 3 Yrs. 2 Yrs. 1 Yr.
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 $3.63 $3.65 $3.68 $3.70 $3.73 $3.76 $3.79 $3.82 $3.85 $3.88
56 3.67 3.70 3.73 3.75 3.78 3.81 3.84 3.87 3.90 3.94
57 3.72 3.75 3.78 3.81 3.84 3.87 3.90 3.93 3.97 4.00
58 3.77 3.80 3.83 3.86 3.89 3.93 3.96 4.00 4.03 4.07
59 3.83 3.86 3.89 3.92 3.96 3.99 4.03 4.06 4.10 4.14
60 3.88 3.92 3.95 3.98 4.02 4.06 4.09 4.13 4.17 4.21
61 3.94 3.98 4.01 4.05 4.09 4.13 4.16 4.21 4.25 4.29
62 4.01 4.04 4.08 4.12 4.16 4.20 4.24 4.28 4.33 4.37
63 4.07 4.11 4.15 4.19 4.23 4.28 4.32 4.37 4.41 4.46
64 4.14 4.18 4.22 4.27 4.31 4.36 4.40 4.45 4.50 4.55
65 4.21 4.26 4.30 4.35 4.39 4.44 4.49 4.54 4.60 4.65
66 4.29 4.33 4.38 4.43 4.48 4.53 4.58 4.64 4.69 4.75
67 4.37 4.42 4.47 4.52 4.57 4.63 4.68 4.74 4.80 4.86
68 4.45 4.50 4.56 4.61 4.67 4.73 4.79 4.85 4.91 4.97
69 4.54 4.59 4.65 4.71 4.77 4.83 4.89 4.96 5.03 5.09
70 4.63 4.69 4.75 4.81 4.87 4.94 5.01 5.08 5.15 5.22
71 4.73 4.79 4.85 4.92 4.99 5.06 5.13 5.20 5.28 5.35
72 4.83 4.89 4.96 5.03 5.10 5.18 5.25 5.33 5.41 5.49
73 4.93 5.00 5.07 5.15 5.23 5.30 5.38 5.47 5.55 5.64
74 5.04 5.12 5.19 5.27 5.35 5.44 5.52 5.61 5.70 5.79
75 5.16 5.24 5.32 5.40 5.49 5.58 5.67 5.76 5.85 5.95
76 5.28 5.36 5.45 5.54 5.63 5.72 5.82 5.92 6.02 6.12
77 5.41 5.50 5.59 5.68 5.78 5.88 5.98 6.08 6.18 6.29
78 5.54 5.63 5.73 5.83 5.93 6.04 6.14 6.25 6.36 6.46
79 5.68 5.78 5.88 5.98 6.09 6.20 6.31 6.42 6.53 6.65
80 5.82 5.93 6.04 6.15 6.26 6.37 6.49 6.60 6.72 6.83
81 5.97 6.08 6.20 6.31 6.43 6.55 6.67 6.79 6.90 7.02
82 6.13 6.25 6.36 6.48 6.61 6.73 6.85 6.97 7.09 7.21
83 6.29 6.41 6.53 6.66 6.79 6.91 7.04 7.16 7.28 7.40
84 6.46 6.58 6.71 6.84 6.97 7.10 7.23 7.35 7.47 7.59
85 6.63 6.76 6.89 7.02 7.15 7.29 7.41 7.54 7.66 7.78
</TABLE>
- --------------------------------------------------------------------------------
Rates for other ages are available upon request.
*Age on birthday nearest the due date of the first payment.
The first income payment is payable on the effective date of this Option.
- --------------------------------------------------------------------------------
P5-99 Page 27
<PAGE>
- --------------------------------------------------------------------------------
OPTION 6. JOINT LIFE INCOME WITH REDUCED PAYMENTS
TO SURVIVOR - PAYMENT OPTION RATES
- --------------------------------------------------------------------------------
MONTHLY LIFE INCOME PER $1,000 OF AMOUNT APPLIED
MALE & FEMALE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
MALE FEMALE IS OLDER THAN MALE BY:
-------------------------------------------------------------------------------------------------------
AGE* SAME AGE 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 $3.91 $3.94 $3.97 $4.01 $4.04 $4.08
56 3.97 4.00 4.04 4.07 4.11 4.15
57 4.04 4.07 4.11 4.15 4.18 4.22
58 4.10 4.14 4.18 4.22 4.26 4.30
59 4.18 4.22 4.26 4.30 4.34 4.39
60 4.25 4.30 4.34 4.38 4.43 4.47
61 4.33 4.38 4.42 4.47 4.52 4.57
62 4.42 4.47 4.52 4.57 4.62 4.67
63 4.51 4.56 4.61 4.66 4.72 4.77
64 4.60 4.66 4.71 4.77 4.83 4.88
65 4.71 4.76 4.82 4.88 4.94 5.00
66 4.81 4.87 4.93 4.99 5.06 5.12
67 4.92 4.99 5.05 5.12 5.18 5.25
68 5.04 5.11 5.18 5.25 5.32 5.39
69 5.16 5.24 5.31 5.38 5.46 5.53
70 5.29 5.37 5.45 5.52 5.60 5.68
71 5.43 5.51 5.59 5.67 5.76 5.84
72 5.58 5.66 5.74 5.83 5.91 6.00
73 5.73 5.81 5.90 5.99 6.08 6.17
74 5.88 5.97 6.07 6.16 6.25 6.34
75 6.05 6.14 6.24 6.33 6.43 6.52
76 6.21 6.31 6.41 6.51 6.61 6.70
77 6.39 6.49 6.59 6.69 6.79 6.89
78 6.57 6.68 6.78 6.88 6.98 7.07
79 6.76 6.86 6.97 7.07 7.17 7.26
80 6.94 7.05 7.16 7.26 7.36 7.45
81 7.13 7.25 7.35 7.45 7.55 7.63
82 7.33 7.44 7.54 7.64 7.73 7.82
83 7.52 7.62 7.73 7.82 7.91 7.99
84 7.70 7.81 7.91 8.00 8.08 8.16
85 7.88 7.99 8.08 8.17 8.25 8.32
</TABLE>
- --------------------------------------------------------------------------------
Rates for other ages are available upon request.
*Age on birthday nearest the due date of the first payment.
The first income payment is payable on the effective date of this Option.
- --------------------------------------------------------------------------------
P5-99 Page 28
<PAGE>
- --------------------------------------------------------------------------------
OPTION 6. JOINT LIFE INCOME WITH REDUCED PAYMENTS
TO SURVIVOR - PAYMENT OPTION RATES
- --------------------------------------------------------------------------------
MONTHLY LIFE INCOME PER $1,000 OF AMOUNT APPLIED
MALE1 & MALE2
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
MALE1 MALE2 IS YOUNGER THAN MALE1 BY:
--------------------------------------------------------------------------------------------------------
AGE* 10 Yrs. 9 Yrs. 8 Yrs. 7 Yrs. 6 Yrs. 5 Yrs. 4 Yrs. 3 Yrs. 2 Yrs. 1 Yr.
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 $4.06 $4.09 $4.13 $4.17 $4.20 $4.24 $4.28 $4.33 $4.37 $4.41
61 4.12 4.16 4.20 4.24 4.28 4.32 4.36 4.41 4.45 4.50
62 4.20 4.24 4.28 4.32 4.36 4.41 4.45 4.50 4.54 4.59
63 4.27 4.31 4.36 4.40 4.45 4.49 4.54 4.59 4.64 4.69
64 4.35 4.39 4.44 4.49 4.53 4.58 4.63 4.69 4.74 4.79
65 4.43 4.48 4.53 4.58 4.63 4.68 4.73 4.79 4.84 4.90
66 4.52 4.57 4.62 4.67 4.73 4.78 4.84 4.90 4.95 5.01
67 4.61 4.66 4.72 4.77 4.83 4.89 4.95 5.01 5.07 5.13
68 4.71 4.76 4.82 4.88 4.94 5.00 5.06 5.13 5.19 5.26
69 4.81 4.87 4.93 4.99 5.05 5.12 5.19 5.25 5.32 5.39
70 4.91 4.98 5.04 5.11 5.17 5.24 5.31 5.38 5.46 5.53
71 5.02 5.09 5.16 5.23 5.30 5.37 5.45 5.52 5.59 5.67
72 5.14 5.21 5.28 5.36 5.43 5.51 5.58 5.66 5.74 5.82
73 5.26 5.33 5.41 5.49 5.57 5.65 5.73 5.81 5.89 5.97
74 5.39 5.47 5.55 5.63 5.71 5.79 5.88 5.96 6.04 6.13
75 5.52 5.60 5.69 5.77 5.86 5.95 6.03 6.12 6.21 6.29
------------------------------------------------------------------------------------------------------------------------
<CAPTION>
MALE2 IS OLDER THAN MALE1 BY:
MALE1 --------------------------------------------------------------------------------------------------------
AGE* SAME AGE 1 Yr. 2 Yrs. 3 Yrs. 4 Yrs. 5 Yrs.
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
60 $4.45 $4.50 $4.54 $4.59 $4.63 $4.68
61 4.54 4.59 4.64 4.69 4.73 4.78
62 4.64 4.69 4.74 4.79 4.84 4.89
63 4.74 4.79 4.84 4.90 4.95 5.00
64 4.85 4.90 4.95 5.01 5.06 5.12
65 4.96 5.01 5.07 5.13 5.19 5.24
66 5.07 5.13 5.19 5.25 5.31 5.37
67 5.20 5.26 5.32 5.38 5.45 5.51
68 5.32 5.39 5.46 5.52 5.58 5.65
69 5.46 5.53 5.59 5.66 5.73 5.79
70 5.60 5.67 5.74 5.81 5.88 5.95
71 5.74 5.82 5.89 5.96 6.03 6.10
72 5.89 5.97 6.04 6.12 6.19 6.26
73 6.05 6.13 6.21 6.28 6.36 6.43
74 6.21 6.29 6.37 6.45 6.53 6.60
75 6.38 6.46 6.54 6.62 6.70 6.77
------------------------------------------------------------------------------------------------------------------------
</TABLE>
Rates for other ages are available upon request.
*Age on birthday nearest the due date of the first payment.
The first income payment is payable on the effective date of this Option.
-------------------------------------------------------------------------------
P5-99 Page 29
<PAGE>
- --------------------------------------------------------------------------------
OPTION 6. JOINT LIFE INCOME WITH REDUCED PAYMENTS
TO SURVIVOR - PAYMENT OPTION RATES
- --------------------------------------------------------------------------------
MONTHLY LIFE INCOME PER $1,000 OF AMOUNT APPLIED
FEMALE1 & FEMALE2
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FEMALE1 FEMALE2 IS YOUNGER THAN FEMALE1 BY:
--------------------------------------------------------------------------------------------------------
AGE* 10 Yrs. 9 Yrs. 8 Yrs. 7 Yrs. 6 Yrs. 5 Yrs. 4 Yrs. 3 Yrs. 2 Yrs. 1 Yr.
--------------- --------- ---------- --------- ---------- --------- ---------- --------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 $3.76 $3.79 $3.82 $3.85 $3.88 $3.91 $3.95 $3.98 $4.01 $4.05
61 3.82 3.85 3.88 3.91 3.94 3.98 4.01 4.05 4.08 4.12
62 3.88 3.91 3.94 3.98 4.01 4.05 4.08 4.12 4.16 4.20
63 3.94 3.97 4.01 4.04 4.08 4.12 4.16 4.19 4.23 4.28
64 4.00 4.04 4.07 4.11 4.15 4.19 4.23 4.27 4.32 4.36
65 4.07 4.11 4.15 4.19 4.23 4.27 4.31 4.36 4.40 4.45
66 4.14 4.18 4.22 4.27 4.31 4.35 4.40 4.45 4.50 4.54
67 4.22 4.26 4.30 4.35 4.40 4.44 4.49 4.54 4.59 4.64
68 4.30 4.34 4.39 4.44 4.49 4.54 4.59 4.64 4.70 4.75
69 4.38 4.43 4.48 4.53 4.58 4.64 4.69 4.75 4.80 4.86
70 4.47 4.52 4.57 4.63 4.68 4.74 4.80 4.86 4.92 4.98
71 4.56 4.62 4.67 4.73 4.79 4.85 4.91 4.98 5.04 5.11
72 4.66 4.72 4.78 4.84 4.91 4.97 5.04 5.10 5.17 5.24
73 4.77 4.83 4.89 4.96 5.03 5.09 5.16 5.24 5.31 5.38
74 4.88 4.94 5.01 5.08 5.15 5.23 5.30 5.38 5.45 5.53
75 4.99 5.06 5.14 5.21 5.29 5.36 5.44 5.52 5.60 5.69
--------------- --------------------------------------------------------------------------------------------------------
<CAPTION>
FEMALE1 FEMALE2 IS OLDER THAN FEMALE1 BY:
--------------------------------------------------------------------------------------------------------
AGE* SAME AGE 1 Yr. 2 Yrs. 3 Yrs. 4 Yrs. 5 Yrs.
--------------- ---------------- ----------------- ---------------- ----------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
60 $4.08 $4.12 $4.16 $4.19 $4.23 $4.27
61 4.16 4.20 4.23 4.27 4.31 4.35
62 4.24 4.28 4.32 4.36 4.40 4.44
63 4.32 4.36 4.40 4.45 4.49 4.54
64 4.40 4.45 4.50 4.54 4.59 4.64
65 4.50 4.54 4.59 4.64 4.69 4.74
66 4.59 4.64 4.70 4.75 4.80 4.85
67 4.70 4.75 4.80 4.86 4.91 4.97
68 4.81 4.86 4.92 4.98 5.04 5.09
69 4.92 4.98 5.04 5.10 5.16 5.23
70 5.04 5.11 5.17 5.24 5.30 5.36
71 5.17 5.24 5.31 5.38 5.44 5.51
72 5.31 5.38 5.45 5.52 5.59 5.66
73 5.46 5.53 5.60 5.68 5.75 5.82
74 5.61 5.69 5.76 5.84 5.92 5.99
75 5.77 5.58 5.93 6.01 6.09 6.16
------------------------------------------------------------------------------------------------------------------------
</TABLE>
Rates for other ages are available upon request.
*Age on birthday nearest the due date of the first payment.
The first income payment is payable on the effective date of this Option.
-------------------------------------------------------------------------------
P5-99 Page 30
<PAGE>
C.M. Life Insurance Company C.M. Life Insurance Company
A STOCK COMPANY Home Office: Hartford, Connecticut
Administrative Office: Springfield,
Massachusetts
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
- --------------------------------------------------------------------------------
This Policy provides that:
A death benefit is payable when both Insureds have died.
Within specified limits, flexible premiums may be paid while either Insured is
living. No dividends will be paid.
P5-99
<PAGE>
Survivorship Term Rider
This rider provides a level amount of survivorship life insurance on the
Insureds. It may not be issued for an amount exceeding the Maximum Rider Face
Amount. This insurance is convertible for a limited period. We discuss this
rider, and the rules that apply to it, in the provisions that follow.
Rider Part Of This rider is made a part of this policy as of its
The Policy Rider Issue Date, in return for the application for
this rider and the payment of monthly rider charges.
Monthly rider charges are discussed later in this
rider. All the provisions of this policy apply to
this rider, except for those that are inconsistent
with this rider. This rider is in force from its
Rider Issue Date or, if later, the date the first
premium under this policy is paid.
Rider Benefit This rider provides a death benefit equal to the
Rider Face Amount. If both Insureds die while this
rider is in force, we will add the rider death
benefit to the death benefit provided by this policy.
The Rider Face Amount is shown in the Policy
Specifications for this rider.
If this policy has a Policy Split Option rider, the
Rider Face Amount of this rider is added to the
policy Face Amount in computing the face amount of
each new policy at the time of the split.
Dates - Rider The Rider Date is shown in the Policy Specifications
Date, Rider for this rider. It is the starting point for
Anniversary Date, determining the Rider Anniversary Dates. The first
Rider Year, Rider Rider Anniversary Date is one year after the Rider
Issue Date Date. The period from the Rider Date to the first
Rider Anniversary Date, or from one Rider Anniversary
Date to the next, is called a Rider Year.
The Rider Issue Date is also shown in the Policy
Specifications for this rider. This Date starts the
contestability and suicide periods for the Initial
Rider Face Amount. We discuss contestability and
suicide later in this rider.
Ages - Rider The Rider Issue Age for each Insured (shown in the
Issue Age, Rider Policy Specifications for this rider) is the age of
Attained Age that Insured on the birthday nearest the Rider Date.
The Rider Attained Age for each Insured is the Rider
Issue Age increased by the number of full Rider Years
elapsed.
Rider Year Of For the Initial Rider Face Amount, each Rider Year is
Coverage a rider year of coverage. If the Rider Face Amount
has been increased, rider years of coverage for each
increase will be measured from the effective date of
the increase.
Rider Charges Charges for this rider are due on each policy Monthly
Charge Date while this rider is in force. Charges
will be deducted monthly from the account value of
this policy.
The monthly charge for this rider equals the sum of
the risk charge for the Rider Face Amount and the
rider face amount charge. The Maximum Monthly Rider
Risk Charge rates and Maximum Rider Face Amount
Charge per $1,000 of Rider Face Amount are shown in
the Table(s) Of Maximum Monthly Rider Charges of the
Policy Specifications for this rider. Maximum monthly
rider risk charge rates and rider face amount charges
for segments of the Rider Face Amount issued in
distinct risk classes will be shown in separate
tables.
We may charge less than the maximum monthly rider
charges shown in the table(s). For each Insured, any
change in these charges will apply to all individuals
in the same class.
STR-99 Page 1
<PAGE>
Increases In While this rider is in force, the Rider Face Amount
The Rider Face may be increased upon written application. We require
Amount evidence of insurability, satisfactory to us, for an
increase. The amount of each increase must be for at
least the Minimum Rider Face Amount Increase shown in
the Policy Specifications for this rider. However,
the Rider Face Amount may not be increased to an
amount that exceeds the Maximum Rider Face Amount
shown in the Policy Specifications for this rider.
Any increase in the Rider Face Amount elected under
an insurability protection type of rider will be
effective as directed in that rider. Any other
increase will be effective on the policy Monthly
Charge Date that is on, or precedes, the date we
approve the application for it. Monthly rider charges
for an increase will be deducted from the policy
account value starting on the effective date of the
increase.
No increase in the Rider Face Amount will be
permitted after the Rider Anniversary Date nearest
the younger Insured's 85th birthday, or, if earlier,
the Rider Anniversary Date nearest the older
Insured's 90th birthday.
Decreases In After the first Rider Year, the Rider Face Amount may
The Rider Face be decreased by the Owner's written request while
Amount either Insured is living. However, the decrease must
not reduce the Rider Face Amount to an amount less
than the Minimum Rider Face Amount shown in the
Policy Specifications for this rider. No decrease is
permitted within one year following the effective
date of any increase.
The Maximum Rider Face Amount shown in the Policy
Specifications for this rider is based on the policy
Face Amount. If the policy Face Amount is decreased
so that the Rider Face Amount would exceed the
Maximum Rider Face Amount after the decrease, the
Rider Face Amount also will be decreased at that
time. It will be decreased to the Maximum Rider Face
Amount as of the date of the decrease.
Any decrease in the Rider Face Amount will be
effective on the policy Monthly Charge Date that is
on, or precedes, the date we receive the written
request. If a decrease follows one or more increases,
the decrease is taken from the most recent
increase(s).
Conversion While this rider is in force, all or part of the
Rider Face Amount may be converted to -- that is,
exchanged for -- new survivorship insurance on the
lives of the Insureds. Conversion may be made at any
time before the Policy Anniversary Date nearest the
younger Insured's 70th birthday or, if earlier, the
Policy Anniversary Date nearest the older Insured's
80th birthday. A written application will be needed,
and both Insureds must be living at the time of
conversion. However, no other evidence of
insurability will be required.
If partial conversion follows one or more increases,
the part of the Rider Face Amount converted is taken
from the most recent increase(s).
Conversion will be effective on the Monthly Charge
Date that is on, or precedes, the date we receive the
written application. The amount of insurance
converted under this rider will continue to, but not
including, that Monthly Charge Date. If any amount of
insurance not converted under this rider is less than
the Minimum Rider Face Amount shown in the Policy
Specifications for this rider, this rider will
terminate as of the effective date of conversion.
The new insurance will be effective on the date of
conversion. The face amount of the new insurance will
be the amount converted. All premiums, monthly
charges, and surrender charges will be based on the
effective date of the new insurance and the lives
STR-99 Page 2
<PAGE>
and risk classes of the Insureds. The new insurance
will be modified to show that the contestable and
suicide periods will be measured from the date(s)
applicable under this rider for the Rider Face Amount
converted.
Conversion Methods There are two methods for converting insurance
coverage under this rider.
Method 1 - Under this method, the new insurance will
be an increase in Face Amount under this policy. A
partial conversion will be permitted under Method 1
only if the amount to be converted is not less than
the Minimum Face Amount Increase shown in the Policy
Specifications. The risk classes of the Insureds will
be the same as for the amount converted.
Method 2 - Under this method, the new insurance will
be a new policy on the lives of the Insureds, offered
for conversion under this rider by us or one of our
affiliates. Conversion will be permitted under Method
2 only if the amount to be converted meets the
minimum issue limit for the new policy at the time of
conversion. The death benefit option under the new
policy will be the same as for this policy on the
date of conversion. The risk classes of the Insureds
will be the same as for the amount converted.
However, if that death benefit option or those risk
classes are not available on the new policy, we will
use the one(s) we determine to be closest to the
one(s) under this policy. Payment of the first
premium for the new policy is required before
conversion can be completed.
Contestability We can bring legal action to contest the validity of
this rider for any material misrepresentation of a
fact made in the application for this rider. However,
we cannot contest the validity of this rider with
respect to an Insured after that it has been in force
during the lifetime of that Insured for two years
after the Rider Issue Date or, if that coverage is
reinstated, two years after the date of
reinstatement. The two-year contestable period for
any increase in the Rider Face Amount will be
measured from the effective date of that increase.
The Rider Issue Date is shown in the Policy
Specifications for this rider.
Misstatement Of If the date of birth or gender of either Insured as
Age Or Gender given in the application is not correct, the Rider
Face Amount will be adjusted. The adjustment will
reflect the amount provided by the most recent
monthly rider charge using the correct ages and
genders. If the adjustment is made while either
Insured is living, monthly rider charges after the
adjustment will be based on the correct ages and
genders.
Suicide If either Insured commits suicide, while sane or
insane, within two years after any life insurance
coverage under this rider becomes effective and while
this rider is in force, that coverage will terminate.
In this case, we will refund the monthly rider
charges deducted for that coverage. However, there
will be no separate refund under this rider if a
refund is payable under the policy Death By Suicide
provision due to suicide within two years after the
policy Issue Date or reinstatement.
Termination Of This rider will continue in force to, but not
This Rider including, the date any of the following occurs:
. The end of the grace period for an unpaid premium
under the policy;
. Termination of this policy for any other reason;
. Change of this policy to a different policy on
which this rider is not available;
. Full conversion of the Rider Face Amount under
this rider; or
. Partial conversion of this rider and the amount
not converted is less than the Minimum Rider Face
Amount. (See the Conversion provision.)
STR-99 Page 3
<PAGE>
Cancellation Of This rider may be cancelled by the Owner's written
This Rider request. Such cancellation will take effect on the
policy Monthly Charge Date that is on, or next
follows, the date we receive the written request.
Insurance under this rider will continue to, but not
including, the effective date of cancellation.
C.M. LIFE INSURANCE COMPANY
/s/ ABC /s/ ABC
PRESIDENT SECRETARY
STR-99 Page 4
<PAGE>
- --------------------------------------------------------------------------------
POLICY SPECIFICATIONS
SURVIVORSHIP TERM RIDER
- --------------------------------------------------------------------------------
POLICY NUMBER: 123456789
INSURED NO. 1: JANE C. DOE
RIDER ISSUE AGE AND GENDER: 35 FEMALE
INSURED NO. 2: JOHN A. DOE
RIDER ISSUE AGE AND GENDER: 35 MALE
RIDER DATE: JANUARY 1, 2000
RIDER ISSUE DATE: JANUARY 1, 2000
INITIAL RIDER FACE AMOUNT: $100,000
MINIMUM RIDER FACE AMOUNT: $100,000
MAXIMUM RIDER FACE AMOUNT: 2 TIMES THE POLICY FACE AMOUNT
MINIMUM RIDER FACE AMOUNT INCREASE: $50,000
TABLE OF MAXIMUM MONTHLY RIDER CHARGES
MAXIMUM MONTHLY RIDER FACE AMOUNT CHARGE PER $1,000 BY RIDER YEAR OF COVERAGE:
Years 1-10 $0.13
Years 11 and later $0.00
RISK CHARGE RATES PER THOUSAND OF RIDER FACE AMOUNT
RISK CLASSES: INSURED NO. 1: NON-TOBACCO
INSURED NO. 2: NON-TOBACCO
RIDER ATTAINED RIDER ATTAINED RIDER ATTAINED
AGE OF THE AGE OF THE AGE OF THE
YOUNGER MONTHLY YOUNGER MONTHLY YOUNGER MONTHLY
INSURED RATE INSURED RATE INSURED RATE
------- ---- ------- ---- ------- ----
35 0.14083 57 0.79083 79 7.14333
36 0.14750 58 0.86833 80 7.80583
37 0.15667 59 0.95583 81 8.54333
38 0.16667 60 1.05333 82 9.37667
39 0.17833 61 1.16167 83 10.31583
40 0.19083 62 1.28500 84 11.34250
41 0.20583 63 1.42583 85 12.43333
42 0.22083 64 1.58500 86 13.56667
43 0.23833 65 1.76083 87 14.73250
44 0.25583 66 1.95000 88 15.90750
45 0.27667 67 2.15500 89 17.10750
46 0.29917 68 2.37500 90 18.34917
47 0.32333 69 2.61500 91 19.65333
48 0.34917 70 2.88583 92 21.06250
49 0.37833 71 3.24250 93 22.63583
50 0.40917 72 3.54667 94 24.63750
51 0.44583 73 3.95333 95 27.49667
52 0.48833 74 4.41000 96 32.04583
53 0.53583 75 4.90000 97 40.01667
54 0.59083 76 5.42167 98 54.83167
55 0.65167 77 5.97000 99 83.33333
56 0.71917 78 6.53917
The above rates are based on the following mortality tables:
INSURED NO. 1 - Commissioners 1980 Standard Ordinary Nonsmoker
Mortality Table - Female
INSURED NO. 2 - Commissioners 1980 Standard Ordinary Nonsmoker
Mortality Table - Male
The rate for the younger Insured's Rider Attained ages above 99 is 0.00.
<PAGE>
Estate Protection Rider
This rider provides a level amount of survivorship term life insurance on the
lives of the Insureds. We discuss this rider, and the rules that apply to it, in
the provisions that follow.
Rider Part Of This rider is made a part of this policy as of its
Policy Rider Issue Date, in return for the application and
the payment of monthly rider charges. The Rider Issue
Date is shown in the Policy Specifications for this
rider. Monthly rider charges are discussed later in
this rider. This rider is in force from the Rider
Issue Date or, if later, the date the first premium
under this policy is paid. All the provisions of this
policy apply to this rider, except for those that are
inconsistent with this rider.
Rider Benefit This rider provides a death benefit equal to the
rider death benefit. If both Insureds die while this
rider is in force and before the Rider Expiration
Date, we will add the rider death benefit to the
death benefit provided by this policy. The Rider
Expiration Date is shown in the Policy Specifications
for this rider.
Rider Death On the Rider Issue Date, the rider death benefit is
Benefit equal to the Initial Rider Face Amount shown in the
Policy Specifications for this rider. So long as the
Face Amount of this policy is not decreased for any
reason to an amount less than the policy Initial Face
Amount, the rider death benefit will not change.
However, if the policy Face Amount decreases to an
amount less than the Initial Face Amount, the rider
death benefit will automatically be decreased to an
amount equal to the Initial Rider Face Amount
multiplied by the result of (a) divided by (b),
where:
(a) Is the policy Face Amount after the decrease; and
(b) Is the policy Initial Face Amount.
A decrease in the rider death benefit will be
effective on the same date as the decrease in the
policy Face Amount.
The rider death benefit cannot be increased.
Rider Charges Each month while this rider is in force, the maximum
rider charge equals the rider death benefit, divided
by 1,000, then multiplied by the Maximum Monthly
Rider Charge Rate for the Attained Age of the younger
Insured. These rates are shown in the Policy
Specifications for this rider.
In determining the monthly rider charges, we may use
rates lower than the Maximum Monthly Rider Charge
Rates. Such lower rates will apply to all individuals
in the same class as the Insureds.
Misstatement Of If the date of birth or gender of either Insured as
Age Or Gender given in the application for this rider is not
correct, the rider death benefit will be adjusted.
The adjustment will reflect the amount provided by
the most recent monthly rider charge using the
correct ages and genders. In addition, if the
adjustment is made before the second death, monthly
rider charges after the adjustment will be based on
the correct ages and genders.
SEPR-99 Page 1
<PAGE>
Termination Of While monthly charges for this rider are being
This Rider deducted from the account value of this policy, this
rider will continue in force to, but not including,
the Rider Expiration Date shown in the Policy
Specifications for this rider. However, this rider
will end automatically before that Date at the time
either of the following occurs:
. Change of this policy to a different policy under
which this rider is not available; or
. Termination of this policy for any other reason.
Once this rider terminates, it may not be reinstated.
Cancellation Of This rider may be cancelled by the Owner's written
This Rider request. Such cancellation will take effect on the
policy Monthly Charge Date that is on, or next
follows, the date we receive the written request.
Insurance under this rider will continue to, but not
including, the effective date of cancellation.
C. M. LIFE INSURANCE COMPANY
/s/ ABC /s/ ABC
PRESIDENT SECRETARY
SEPR-99 Page 2
<PAGE>
POLICY SPECIFICATIONS
ESTATE PROTECTION RIDER
- --------------------------------------------------------------------------------
POLICY NUMBER: 123456789
INSURED NO. 1: JANE C. DOE
RIDER ISSUE AGE AND GENDER: 35 FEMALE
RISK CLASS: PREFERRED NONTOBACCO
INSURED NO. 2: JOHN A. DOE
RIDER ISSUE AGE AND GENDER: 35 MALE
RISK CLASS: PREFERRED NONTOBACCO
RIDER DATE: JULY 1, 1998
RIDER ISSUE DATE: JULY 1, 1998
RIDER EXPIRATION DATE: JULY 1, 2002
INITIAL RIDER FACE AMOUNT: $500,000
TABLE OF MAXIMUM MONTHLY RIDER CHARGE RATES
PER THOUSAND OF RIDER DEATH BENEFIT
ATTAINED AGE OF
THE YOUNGER INSURED MONTHLY RATE
------------------- ------------
35 0.00002
36 0.00006
37 0.00010
38 0.00016
<PAGE>
Accelerated Death Benefit Rider
For Terminal Illness
This rider provides that an accelerated death benefit payment may be made under
this policy. We discuss this rider, and the rules that apply to it, in the
provisions that follow.
Benefits payable under this rider may be taxable. The Owner should seek tax
advice prior to requesting an accelerated death benefit payment.
An accelerated death benefit payment will not be allowed if the Owner is
required to request the payment by any third party (including any creditor,
governmental agency, trustee in bankruptcy, or any other person) or as the
result of a court order.
Rider Benefit Subject to the terms of this rider, an accelerated
death benefit will be paid to the Owner upon request
once we receive proof that the surviving Insured has
a terminal illness.
Accelerated Benefit Payment
In this section, we discuss payment of the
accelerated death benefit and the amounts used in
determining the amount of the payment.
Eligible Amount The Eligible Amount is the amount of death benefit
under this policy that can be considered for
acceleration. It will be determined as of the
Acceleration Date. This Amount includes the following
as of that Date:
1. The amount equal to the excess of:
a. The death benefit payable under the base
policy upon the second death ; over
b. The account value; and
2. The amount payable upon the second death
under any survivorship life insurance rider
included with this policy, if that rider
provides level or increasing coverage on the
lives of the policy Insureds for at least
two years after the Acceleration Date.
The Eligible Amount does not include:
1. The amount payable upon the second death
under any survivorship life insurance rider
that does not provide level or increasing
coverage on the lives of the policy Insureds
for at least two years after the
Acceleration Date; or
2. The amount of any insurance provided under
this policy on the life of someone other
than the surviving Insured under the policy.
Amount To Be Subject to the terms of this rider, the Owner may
Accelerated accelerate any portion of the Eligible Amount up to
the maximum limit. The maximum amount to be
accelerated is equal to the lesser of:
. 75% of the Eligible Amount; and
. $250,000 minus the total amount accelerated under
all other policies issued on the life of the
surviving Insured by us and any of our affiliates.
We reserve the right to impose a minimum limit on the
amount to be accelerated; if we do so, this limit
will not exceed $25,000.
Amount Of Payment The amount of payment under this rider will be
computed based on the amount to be accelerated less:
SABRVL-99 Page 1
<PAGE>
. Interest at the annual interest rate we have
declared for policies in this class; and
. A fee of not more than $250.
If required, a detailed statement of the method we
use to compute the amount of the accelerated benefit
payment has been filed with the insurance department
of the state where this policy was delivered.
How We Pay Payment of the accelerated benefit will be made to
the Owner in a lump sum. However, we will not make
the payment if we first receive due proof of the
deaths of both Insureds; in this case, we will
instead pay the death benefit as if no request had
been received under this rider.
Effect On Policy After the accelerated benefit payment is made, this
policy will remain in force. Premiums and charges
will continue in accordance with the policy
provisions.
A lien will be established against this policy. The
amount of the lien will be equal to the amount to be
accelerated under this rider. Interest will not be
charged on the lien. The Owner may not voluntarily
repay all or any portion of the lien. However, the
amount of the lien will be deducted from the amount
of payment under this policy upon the second death.
Other Definitions And Requirements
Acceleration Date The Acceleration Date is the first date on which all
the requirements for acceleration, except any
confirming examination that we may require, have been
met. Our right to require a confirming examination is
discussed below in the Proof Of Terminal Illness
provision.
Requirements For Before the accelerated benefit can be paid, all of
Acceleration the following requirements must be met:
1. We must receive at our Administrative
Office:
a. The Owner's written request for payment
of an accelerated death benefit under
this policy;
b. Due proof of death of the first Insured
to die;
c. The surviving Insured's written
authorization to release medical
records to us; and
d. The written consent to this request of
any assignee and any Irrevocable
Beneficiary under this policy.
2. We must receive proof, satisfactory to us,
that the surviving Insured has a terminal
illness.
Terminal Illness As used in this rider, "terminal illness" is a
medical condition that:
. If first diagnosed by a legally qualified physician
after the Issue Date of this policy; and
. With reasonable medical certainty, will result in
the death of the surviving Insured within 12 months
after the date the legally qualified physician
certifies the diagnosis; and
. Is not curable by any means available to the
medical profession.
Proof Of Terminal Proof of terminal illness is written certification,
Illness satisfactory to us, that a legally qualified
physician has diagnosed the surviving Insured as
having a terminal illness. To establish this proof,
we reserve the right to require that the diagnosis be
confirmed with examination of the surviving Insured,
at our expense, by a physician of our choice. This
"confirming examination" may include any x-rays,
blood tests, and other procedures that are
SABRVL-99 Page 2
<PAGE>
reasonable and necessary to determine whether the
surviving Insured has a terminal illness. To be
acceptable to us, the confirming examination must be
completed within 90 days after the date we notify the
Owner of this requirement.
Legally Qualified As used with this rider, a "legally qualified
Physician physician" is a person who is licensed by the state
in which he or she practices to give advice or
treatment for the terminal illness and who is acting
within the scope of that license. A legally qualified
physician must be someone other than the Owner or the
surviving Insured, or a spouse, mother-in-law,
father-in-law, stepparent, or natural adoptive
brother, sister, parent, grandparent, or child of the
Owner or either Insured.
General Provisions
Rider Part Of This This rider is made a part of this policy as of its
Policy Rider Issue Date. All the provisions of this policy
apply to this rider, except for those that are not
consistent with this rider. This rider is in force
from its Rider Issue Date or, if later, the date the
first premium under this policy is paid. There are no
monthly charges for this rider.
Termination Of This This rider will end automatically on the date:
Rider
. An accelerated benefit payment is made; or
. This policy terminates for any reason; or
. This policy matures; or
. This policy is changed to a different policy on
which this rider is not available; or
. Two years before coverage under this policy is
scheduled to terminate.
Cancellation Of This This rider may be cancelled by the Owner's written
Rider request.
C. M. LIFE INSURANCE COMPANY
/s/ ABC /s/ ABC
PRESIDENT SECRETARY
SABRVL-99 Page 3
<PAGE>
Policy Split Option Rider
This rider provides the right to exchange this policy for two new policies, one
on the life of each Insured, if certain conditions are met. We discuss this
rider, and the rules that apply to it, in the provisions that follow.
Rider Part Of This rider is made a part of this policy. The rider
Policy is in force from the Issue Date of the policy or, if
later, the date the first premium under this policy
is paid. All the provisions of this policy apply to
this rider, except for those that are inconsistent
with this rider.
Rider Benefit Subject to the provisions of this rider, this policy
may be exchanged for two new life insurance policies,
one on the life of each Insured. This right to
exchange will be available for the six-month period
beginning on:
1. The date six months after the effective date of a
final decree of divorce, issued by a court of
competent jurisdiction, ending the Insureds'
marriage to each other, if the decree:
. First becomes effective at least one year after
the policy Issue Date; and
. Remains in effect during the entire six-month
period after it first becomes effective; or
2. The date that either:
. Section 2056 of the Internal Revenue Code
(I.R.C.) is nullified or amended to eliminate
or reduce the Insureds' federal estate tax
marital deduction; or
. The maximum federal estate tax rate given in
I.R.C. Section 2001 is reduced to a rate no
more than one-half the rate in effect on the
Issue Date of this policy; or
3. If this policy is owned by a corporation or
partnership, the effective date that the
corporation or partnership dissolves.
For the I.R.C. changes discussed in item 2 above, the
six-month period will begin on the effective date of
the change or, if later, the date the change is
signed into law.
Policy Split The face amount of each new policy will be one-half
Method the Face Amount of this policy at the time of the
split.
The policy date of each new policy will be the Date
of Exchange (discussed later in this rider). The
issue age for each will be the age of the policy
Insured on the birthday nearest that policy date. For
each new policy, the risk class will be the one we
deem comparable to the highest risk class for that
Insured under this policy. Each new policy may
include benefit riders comparable to any included
with this policy only with our consent.
The policy split option is allowed under either of
two plans, described below in this provision. Each
new policy may be issued under either plan.
Plan 1 - Fixed Premium Permanent Life
Policy. The new policy will be a fixed
premium permanent life insurance policy
offered for the Insured on the Date of
Exchange by us or one of our affiliates. All
premiums, rates, and other values will be
based on the policy date of the new policy
and the life and risk class of the policy
Insured.
Plan 2 - Flexible Premium Adjustable Life
Policy. The new policy will be a flexible
premium adjustable life insurance policy
offered for the Insured on the Date of
Exchange by us or one of our affiliates. The
death benefit option will be the same as for
this policy. However, if the Death Benefit
Option for this policy in effect on the day
before the Date of Exchange is not available
on the new policy, the death benefit option
on the new policy will be the available one
that we determine to be closest to the one
on this policy. All premiums, monthly
charges, and surrender charges will be based
on the policy date of the new policy and the
SSOR-99 Page 1
<PAGE>
life and risk class of the policy Insured. A
new policy under Plan 2 will not be
available for an Insured if that Insured's
issue age under the new policy would exceed
80.
Payment of the first premium for each new policy is
required before the exchange can be completed. If
this policy has any net surrender value, it will be
applied to reduce the premiums for the first year
under the new policies. Any net surrender value not
needed for this purpose will be paid in cash when the
exchange is complete.
Date Of The Date of Exchange will be the Monthly Charge Date
Exchange that is on, or next follows, the later of:
. The date we approve both applications for exchange;
and
. The date we have received, at our Administrative
Office, the first premiums due under both new
policies.
Example: The Monthly Charge Date is the 10th of each
month. We approve the applications for
exchange on May 5, 19X8. The first
premiums for the new policies are paid on
May 15, 19X8. The Date of Exchange will be
June 10, 19X8.
This policy will continue in force to, but not
including, the Date of Exchange.
Requirements To make an exchange, all of the following conditions
For Exchange must be met as of the Date of Exchange:
1. This policy and rider are in force; and
2. Both Insureds are living; and
3. For each new policy, the Owner of that policy
must have an insurable interest in the life of
the Insured; and
4. The Attained Age of each Insured is lower than 85;
and
5. The face amount and premium for each new policy
must meet our published minimum limits; and
6. The highest risk class under this policy for each
Insured must not be higher than the highest risk
class available under the new policy for that
Insured. If we determine that the highest risk
class of any coverage under this policy for either
Insured is higher than the highest risk class
available under the new policy for that Insured,
exchange under this rider will not be allowed.
Before the exchange can become effective, we require:
1. For each new policy, a written application for
exchange, received by us at our Administrative
Office; and
2. Evidence, satisfactory to us, that both Insureds
are living and that the Owner of each new policy
has an insurable interest in the life of the
Insured under the policy; and
3. Evidence, satisfactory to us, of:
. Divorce of the Insureds, if that is the reason
for the exchange; or
. Dissolution of the corporation or partnership
owning this policy, if that is the reason for
the exchange; and
4. Payment to us of the first premium due under both
new policies.
No other evidence of insurability will be required.
The New Insurance under each new policy will be effective as
Policies of the Date of Exchange.
After exchange, each new policy will be considered to
have been issued as of its policy date. However, it
will be modified to show that the contestable and
suicide periods will be measured from the date(s)
applicable under this policy. Each new policy for an
Insured
SSOR-99 Page 2
<PAGE>
will be subject to any limitations of risk with
respect to that Insured under this policy and subject
to any assignments outstanding against this policy.
Termination Of This rider will continue in force until the time any
This Rider of the following occurs:
. The Policy Anniversary Date on which the Attained
Age of the older Insured becomes 85; or
. Death of the first Insured to die; or
. Exchange of this policy for two new policies under
the terms of this rider; or
. Change of this policy to a different policy under
which this rider is not available; or
. Termination of this policy for any other reason.
C. M. LIFE INSURANCE COMPANY
/s/ ABC /s/ ABC
PRESIDENT SECRETARY
SSOR-99 Page 3
<PAGE>
EXHIBIT 99.B: Form of Opinion and Consent of Counsel.
(C.M. LIFE LETTERHEAD)
October 4, 1999
C.M. Life Insurance Company
140 Garden Street
Hartford, CT 06154
RE: Registration Statement
filed on Form S-6
Ladies and Gentlemen:
This opinion is furnished in connection with the filing of Registration
Statement under the Securities Act of 1933 for C.M. Life Insurance Company's
("C.M. Life") Survivorship Flexible Premium Adjustable Variable Life Insurance
Policies (the "Policies"). C.M. Life Variable Life Separate Account I issues the
Policies.
As 2nd Vice President-Law for C.M. Life, I provide legal advice to C.M. Life in
connection with the operation of its variable products. In such role I am
familiar with the filing for the Policies. In so acting, I have made such
examination of the law and examined such records and documents as in my judgment
are necessary or appropriate to enable me to render the opinion expressed below.
I am of the following opinion:
1. C.M. Life is a valid and subsisting corporation, organized and operated under
the laws of the state of Connecticut and is subject to regulation by the
Connecticut Commissioner of Insurance.
2. C.M. Life Variable Life Separate Account I is a separate account validly
established and maintained by C.M. Life in accordance with Connecticut law.
3. All of the prescribed corporate procedures for the issuance of the Policies
have been followed, and all applicable state laws have been complied with.
I hereby consent to the use of this opinion as an exhibit to this filing.
Very truly yours,
/s/ Richard M. Howe
- -----------------------------
Richard M. Howe
2nd Vice President - Law
<PAGE>
EXHIBIT 99.F: Form of Actuarial Opinion
(C.M. LIFE LETTERHEAD)
October 4, 1999
C.M. Life Insurance Company
140 Garden Street
Hartford, CT 06154
Ladies and Gentlemen:
This opinion is furnished in connection with Registration Statement for C.M.
Life Insurance Company's Survivorship Flexible Premium Adjustable Variable Life
Insurance Policies (the "Policies") under the Securities Act of 1933. The
prospectus included in the filing describes the Policies. I am familiar with the
forms of the Policies and the prospectus.
In my opinion, the illustrations of benefits under the Policies included in the
section entitled "Illustrations" in Appendix D of the prospectus, based on the
assumptions stated in the illustrations, are consistent with the provisions of
the respective forms of the Policies. The age selected in the illustrations is
representative of the manner in which the Policies operate.
I hereby consent to the use of this opinion as an exhibit to Registration
Statement filing and to the reference of my name under the heading "Experts" in
the prospectus.
Sincerely,
/s/ Craig Waddington
- -------------------------
Craig Waddington, FSA, MAAA
Vice President and Actuary
