Registration No. 333- February 2, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Initial Registration
to
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
A. Exact name of trust:
American Skandia Life Assurance Corporation Separate Account F
B. Name of depositor:
American Skandia Life Assurance Corporation
C. Complete address of depositor's principal executive offices:
One Corporate Drive, Shelton, CT 06484
D. Name and complete address of agent for service:
Scott K. Richardson, Esq.
American Skandia Life Assurance Corporation
One Corporate Drive
Shelton, CT 06484
It is proposed that this filing will become effective
(check appropriate box)
[ ] immediately upon filing pursuant to paragraph (b)
[ ] on ____________ pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on ________ pursuant to paragraph (a)(1) of rule 485
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
E. Title and amount of securities being registered:
Flexible Premium Variable Life Insurance.
The Registrant elects to register an indefinite number of securities by
this registration statement in accordance with Rule 24f-2 under the
Investment Company Act of 1940.
F. Proposed maximum aggregate offering price to the public of the
securities being registered:
G. Amount of filing fee:
None
H. Approximate date of proposed public offering
As soon as practicable after the effective date of this Registration
Statement.
[ ] Check box if it is proposed that this filing will become effective
on ______________ at ____________ pursuant to Rule 487.
Champion IIA
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
1. Face page
2. Face page
3. Not applicable
4. Distribution of this Offering
5. The Separate Account
6. The Separate Account
7. Not Applicable
8. Not Applicable
9. Legal Proceedings
10. Face page; Variable Investment Options; The Separate Account; Voting;
Modification of the Separate Account; Additional Tax Considerations; Loans;
Partial Withdrawals; Surrenders; Transfers and Allocation Services;
Safekeeping of the Assets
11. Face page; Variable Investment Options
12. Face page; Variable Investment Options
13. Costs; Variable Investment Options; Taxes; Additional Tax Considerations
14. Buying a Policy - How do I buy a Policy?
15. Account Value and Cash Value; Buying a Policy - How and When is my Premium
Invested?
16. Buying a Policy - How and When is my Initial Premium Invested? Variable
Investment Options
17. Partial Withdrawals; Surrenders; Reinstatement; Account Value and Cash
Value; Buying a Policy; Pricing Transactions
18. Account Value and Cash Value; Variable Investment Options; The Separate
Account; Safekeeping of the Assets
19. Reports
20. Voting; Safekeeping of the Assets
21. Loans
22. Not applicable
23. Safekeeping of the Assets
24. Not applicable
25. Regulation; The Insurance Company
26. Not applicable
27. The Insurance Company
28. Executive Officers and Directors
29. The Insurance Company
30. Not applicable
31. Not applicable
32. Not applicable
33. Not applicable
34. Not applicable
35. The Insurance Company; Regulation
36. Not applicable
37. Not applicable
38. Distribution of this Offering
39. Distribution of this Offering
40. Not applicable
41. The Insurance Company; Distribution of this Offering
42. Not applicable
43. Not applicable
44. Account Value and Cash Value; Pricing Transactions; Additional Tax
Considerations; Net Investment Factor
45. Not applicable
46. Account Value and Cash Value; Pricing Transactions; Additional Tax
Considerations; Net Investment Factor
47. Variable Investment Options; The Separate Account
48. Face Page; The Insurance Company
49. Not applicable
50. The Separate Account; Safekeeping of the Assets
51. Face Page; The Insurance Company; Benefits at the Insured's Death;
Designations
52. Modification of the Separate Account
53. Additional Tax Considerations
54. Not applicable
55. Not applicable
56. Not applicable
57. Not applicable
58. Not applicable
59. Audited Consolidated Financial Statements of American Skandia Life Assurance
Corporate; Financial Statements for American Skandia Life Assurance
Corporation Separate Account F
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
One Corporate Drive, Shelton, Connecticut 06484
This Prospectus describes a flexible premium variable life insurance policy
being offered by American Skandia Life Assurance Corporation ("we," "our," "us,"
"American Skandia," or "the Company"), One Corporate Drive, P.O. Box 883,
Shelton, Connecticut, 06484. The policy may be offered as individual coverage or
as an interest in a group policy. This Prospectus provides a detailed discussion
of matters you should consider before buying a policy. This policy or certain of
its investment options may not be available in all jurisdictions. Various rights
and benefits may differ between jurisdictions to meet applicable law and/or
regulations.
What is American Skandia offering? We are offering a type of cash value life
insurance coverage called "flexible premium variable life insurance." Each of
these terms can be explained as follows:
|X| The coverage is "life insurance" because a death benefit becomes payable to
a beneficiary upon the death of the insured person (if coverage is issued
on two insureds, the death benefit is payable upon the death of the second
of the insureds to die). It is "cash value" life insurance because, in
addition to a death benefit, it also provides living benefits for the
owner, such as the right to take withdrawals and the right to take loans,
using the value of the policy as collateral.
|X| The coverage is called "flexible premium" because it offers considerable
flexibility in the timing and amount of premium payments after the initial
premium. No additional premium must be paid unless it is required to pay
the ongoing monthly charges. However, there is a minimum amount we accept,
both for initial and subsequent premiums. There is also a maximum total
amount you can pay. In order to achieve certain beneficial tax treatment
for withdrawals and loans, you may need to limit the amounts you pay. If
you pay the maximum allowable amount, you may not be able to pay any
additional premiums without applying for additional insurance.
|X| The coverage is "variable" because you can allocate all or part of your
premium to variable investment options that invest in an underlying mutual
fund or a portfolio of an underlying mutual fund. The variable investment
options are sub-accounts of American Skandia Life Assurance Corporation
Separate Account F ("Account F"). The following underlying mutual funds or
portfolios of the following underlying mutual funds currently are being
offered: American Skandia Trust, Montgomery Variable Series, INVESCO
Variable Investment Funds, Inc., and Evergreen Variable Annuity Trust. The
available portfolios of these underlying mutual funds are listed on page
xx. The performance of the variable investment options is not guaranteed.
You bear the investment risk if you allocate funds to these investment
options because the performance of these investment options can decrease or
increase. This can impact the death benefit and the cash value of the
Policy.
|X| The coverage also allows you to allocate all or part of your premiums to a
fixed option to which we credit a fixed rate of interest. We guarantee the
rate of return on this option. These obligations are supported by our
general account. We bear the investment risk if you allocate funds to this
option.
|X| The Policy can be structured to qualify as life insurance under either of
two (2) tests outlined in the Internal Revenue Code ("Code") - the
guideline premium test or the cash value accumulation test. The test you
choose can have an impact on the amount of premium that can be applied to
the Policy and can have an impact on values under your Policy, including
the death benefit. Your financial professional can assist you in electing
the test that is best for your particular situation and goals.
|X| Depending on the timing and amount of your premium payments, the Policy may
be treated as a modified endowment contract (or MEC). We evaluate your
policy according to the "7-pay test" under the Code, which compares the
amount of premiums paid to the amount of insurance purchased. If your
policy "passes" the 7-pay test, it will not be treated as a MEC. As a
non-MEC, partial withdrawals or loans you take from the policy will receive
favorable tax treatment. If your policy does not pass the 7-pay test at any
time, it will be treated as a MEC and will not be entitled to some of the
beneficial tax treatment given to a non-MEC policy.
The variable life insurance policy described in this Prospectus is not a deposit
of or guaranteed by, any bank or bank subsidiary, and is not insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other
agency. The Policy is subject to investment risks, including the possible loss
of the principal amount invested.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. PLEASE
READ THIS PROSPECTUS AND THE CURRENT PROSPECTUSES FOR THE UNDERLYING FUNDS. KEEP
IT FOR FUTURE REFERENCE.
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CHAMPIIA-PROS (5/2000) CALL 1-800-752-6342 FOR FURTHER INFORMATION
Prospectus Dated: May 1, 2000
|X| The Policy has a limited amount of liquidity during the first ten (10)
years. During that period, you can only make withdrawals under certain
medically-related circumstances or from premium amounts made in excess of
certain limits. However, you can access a portion of the policy's value
through policy loans using a portion of its value as collateral. Assuming
that the policy is not treated as a MEC, policy loans receive favorable tax
treatment. Loans can have an impact on benefits that can be positive or
negative.
This page is intentionally left blank.
TABLE OF CONTENTS
Definitions........................................................................................................................6
Summary of Costs...................................................................................................................9
Description of the Offering.......................................................................................................10
Purchasers.....................................................................................................................12
The Insurance Company..........................................................................................................35
Benefits at the Insured's Death................................................................................................12
Account Value and Cash Value...................................................................................................15
Cash Value Credits.............................................................................................................16
Costs..........................................................................................................................16
Buying a Policy................................................................................................................20
Variable Investment Options....................................................................................................22
Additional Premiums............................................................................................................30
Keeping the Policy In Force....................................................................................................30
Transfers and Allocation Services..............................................................................................31
Loans..........................................................................................................................31
Partial Withdrawals............................................................................................................33
Surrenders.....................................................................................................................33
Accelerated Death Benefit......................................................................................................33
Medically-Related Waiver.......................................................................................................34
Risks..........................................................................................................................34
Other Rights...................................................................................................................35
The Separate Account...........................................................................................................35
Taxes..........................................................................................................................36
Available Information..........................................................................................................36
Miscellaneous Provisions and Additional Details...................................................................................37
Providing Services to You......................................................................................................37
Designations...................................................................................................................37
Net Investment Factor..........................................................................................................37
Allocation Programs............................................................................................................38
Limitations on Transfers.......................................................................................................38
Death During the Grace Period..................................................................................................38
Reinstatement..................................................................................................................38
Maturity.......................................................................................................................38
Pricing Transactions...........................................................................................................39
Delaying Transactions..........................................................................................................39
Voting.........................................................................................................................39
Transfers, Assignments, Pledges................................................................................................40
Reports........................................................................................................................40
Incontestability...............................................................................................................40
Suicide........................................................................................................................41
Misstatement...................................................................................................................41
Backdating.....................................................................................................................41
Policy Loans on Exchanges......................................................................................................41
Resolving Material Conflicts...................................................................................................41
Modification of the Separate Account...........................................................................................42
Entire Contract................................................................................................................42
Additional Tax Considerations..................................................................................................42
Safekeeping of the Assets......................................................................................................44
Regulation.....................................................................................................................44
Legal Matters..................................................................................................................44
Legal Proceedings..............................................................................................................44
Experts........................................................................................................................45
Distribution of this Offering..................................................................................................45
Illustrations..................................................................................................................46
Executive Officers and Directors...............................................................................................47
FINANCIAL STATEMENTS OF AMERICAN SKANDIA LIFE ASSURANCE CORPORATION................................................................1
Financial Statements for Separate Account F........................................................................................1
Appendix A Hypothetical Illustrations of Death Benefits, Account Values and Cash Values............................................1
Appendix B Multiple Factors for Determination of Minimum Required Death Benefits...................................................4
Appendix C Guaranteed Maximum Monthly Cost of Insurance Charges....................................................................8
Appendix D Current Monthly Cost of Insurance Rates................................................................................10
Appendix E Description of the Calculation of Current Monthly Cost of Insurance Charges............................................12
Appendix F Maximum Annual Assessable Premiums per $1,000 of Specified Amount......................................................13
Appendix G Hypothetical Illustration of Accelerated Death Benefit.................................................................15
DEFINITIONS
The following are key terms used in this Prospectus. Other terms are defined in
this Prospectus as they appear.
ACCOUNT VALUE is the value of your allocation to each Sub-account and any Fixed
Allocation, plus any earnings and less any losses, distributions and charges
thereon, plus the value of any amounts in the Loan Account, plus any earnings
and less any distributions and charges thereon, all before assessment of any
contingent deferred sales charge or Debt. Account Value is determined separately
for each Sub-account and each Fixed Allocation, as well as for any amounts in
the Loan Account, and then totaled to determine the Account Value of your entire
Policy.
AGE is the age of an Insured for purposes of this Policy. Initially, and for the
first Policy Year, it is the age last birthday of an Insured as of the Policy
Date. In each following Policy Year, it is the age last birthday of an Insured
as of the preceding Policy Anniversary. If there is more than one Insured, it is
the age of the younger Insured.
APPLICATION is the form or combination of forms you must submit to apply for a
Policy. If there are two Insureds, the Application must be completed for both
Insureds.
ASSESSABLE PREMIUM is the portion of Premiums paid against which we assess any
applicable contingent deferred sales charge upon a surrender of the Policy.
BENEFICIARY is a person or entity you designate for us to pay any Death
Proceeds. Unless otherwise specified, Beneficiary refers to all persons or
entities so designated.
CASH VALUE is the Account Value less any contingent deferred sales charge, less
any unpaid charges and Debt.
CASH VALUE CREDITS are amounts we credit to your Account Value. We credit these
amounts if your total Cash Value on a Policy Anniversary equals or exceeds a
trigger or your Premium (net of withdrawals) exceeds a cumulative amount after
seven Policy Years.
CODE is the Internal Revenue Code of 1986, as amended from time to time, and the
regulations thereunder.
DEATH BENEFIT is the amount payable as a result of an Insured's death before any
reduction due to Debt and any unpaid charges due and before addition of any
interest due pursuant to law. If there is a second Insured, the Death Benefit is
payable upon the death of the last surviving Insured.
DEATH PROCEEDS equals the Death Benefit less any reduction due to Debt and any
unpaid charges due and after addition of any interest due pursuant to law.
DEBT is the total of any outstanding loan and loan interest.
EXCHANGE POLICY is a Policy purchased as part of an exchange of life insurance
policies that does not incur any current taxation pursuant to Section 1035 of
the Code or any successor provision, and into which the surrender value of one
or more prior policies is contributed to the Policy in conjunction with such
exchange.
EXEMPT PREMIUM is the portion of Premiums paid against which we do not assess
any contingent deferred sales charge upon surrender or withdrawal and the amount
of any loans we establish in conjunction with your purchase of an Exchange
Policy.
FIXED ALLOCATION is an allocation of Account Value to our general account that
is credited a fixed rate of interest.
GUARANTEED MINIMUM DEATH BENEFIT is the minimum amount we guarantee is payable
as a result of the Insured's death, before we assess any unpaid charges due and
any reduction for Debt. However, this benefit does not apply once the Insured
reaches Age 100, or if there are two Insureds, when the younger Insured reaches
Age 100 or would have reached that Age if the younger Insured dies before the
older Insured.
IN WRITING is in a written form, in a manner we accept, that is satisfactory to
us and filed at our Office. We retain the right to specifically agree in advance
to accept communication regarding a specific matter by telephone or by some
other form of electronic transmission, in a manner we prescribe.
INSURED is the person(s) upon whose life coverage is issued and as a result of
whose death the Death Proceeds are payable. If there is more than one Insured,
Insured means the last surviving Insured, unless otherwise stated.
ISSUE DATE is the date we issue your Policy.
LOAN ACCOUNT is where we maintain Account Value as collateral for a loan to you
from us.
MAXIMUM ANNUAL ASSESSABLE PREMIUM is the maximum amount of Premium against which
we will assess any contingent deferred sales charge upon surrender of the
Policy. We do not assess any contingent deferred sales charge upon surrender
against any portion of the Premium you pay that exceeds the maximum amount for
that Policy Year.
MEC is a modified endowment contract as defined in Section 7702A of the Code or
any successor provision thereto. Whether a Policy is a "MEC" or a "non-MEC"
depends on whether the Policy satisfies the "7-pay test", a test outlined in the
Code that compares the amount of premiums paid to the amount of insurance
purchased.
MEC THRESHOLD AMOUNT is the annual level amount of Premium which, if exceeded,
would cause the Policy to become a MEC.
MINIMUM REQUIRED DEATH BENEFIT is the minimum amount due as a result of the
Insured's death pursuant to the applicable test we apply in accordance with the
Code, prior to any reduction for Debt.
MONTHLY PROCESSING DAY/DATE is the Valuation Day each month when we deduct
charges from the Account Value. The first Monthly Processing Date is the Policy
Date. After that, the Monthly Processing Dates generally occur on the same day
of the month as the Policy Date. If the Monthly Processing Date occurs on a day
that is not a Valuation Day, the Monthly Processing Date that month will be the
next Valuation Day.
NET AMOUNT AT RISK is the difference between the Death Benefit and the Account
Value. We use a formula when calculating the Net Amount at Risk as part of
determining the monthly cost of insurance charge.
NET PREMIUM is a Premium less the deduction for premium taxes, "DAC" taxes and
any amount deductible from Premium for an optional additional benefit should you
elect such benefits.
OFFICE is our administrative office: American Skandia Life Assurance
Corporation, P.O. Box 290698, Wethersfield,
Connecticut 06129-0698.
OWNER is either an entity or person who may exercise the ownership rights
provided by a Policy. If we issue a certificate representing interests in a
group life insurance policy, the rights, benefits, and requirements of and the
events relating to an Owner, as described in this Prospectus, will be your
rights as participant in such group policy. Unless later changed, Owner refers
to all persons or entities designated as such in your Policy.
POLICY is the insurance contract or certificate we issue as evidence of our
commitment to pay the Death Proceeds upon the death of the Insured.
POLICY ANNIVERSARY is the anniversary of the Policy Date.
POLICY DATE is the effective date of your Policy.
POLICY MONTH is the period from one Monthly Processing Day to the next.
POLICY YEARS are continuous 12-month periods that begin on the Policy Date and
each Policy Anniversary thereafter.
PORTFOLIO is a portfolio of an underlying mutual fund.
PREMIUM is each consideration you give to us for the rights, privileges and
benefits provided by a Policy according to its terms. This includes Premium paid
as of the Policy Date, as shown in the Policy, and any additional consideration
we choose to accept.
SEPARATE ACCOUNT is our separate account to which we allocate assets in relation
to our obligations for benefits based on the variable investment options.
American Skandia Life Assurance Corporation Separate Account F (also referred to
as Separate Account F) is the separate account utilized for the Policy.
SPECIFIED AMOUNT is a measure we use in determining the Death Benefit.
SUB-ACCOUNT is a division of the Separate Account.
UNIT is a measure used to calculate Account Value in a Sub-account.
UNIT PRICE is used for calculating: (a) the number of Units allocated to a
Sub-account; and (b) the value of transactions into or out of a Sub-account or
benefits based on Account Value in a Sub-account. Each Sub-account has its own
Unit Price, which will vary each Valuation Period to reflect the investment
experience of that Sub-account.
VALUATION DAY/DATE is every day the New York Stock Exchange is open for trading
or any other day that the Securities and Exchange Commission requires mutual
funds or unit investment trusts to be valued.
VALUATION PERIOD is the period of time between the close of business of the New
York Stock Exchange on successive Valuation Days.
"we," "us," "our," "American Skandia," or "the Company" means American Skandia
Life Assurance Corporation.
"you" or "your" means the Owner.
SUMMARY OF COSTS
The following is a summary of the cost of the Policies being offered, or, in the
case of costs that vary from Policy to Policy, a short description of how such
costs are determined. All of these costs are described in more detail within
this Prospectus.
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COST AMOUNT DEDUCTED/ WHEN DEDUCTED
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DESCRIPTION OF COST
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Premium Tax Generally from 0% to 3.5% of Premium From each Premium payment
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"DAC" Tax 1.15% of Premium From each Premium payment
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Mortality & Expense Risk Charge Policy Years 1 through 15 0.90% Policy Years 16+ Daily
------------------------- ----------------
per year of the value of each 0.25% per year of the value of
Sub-account each Sub-account
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Administration Charge 0.25% per year of the value of each Sub-account Daily
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Cost of Insurance Monthly
Charge varies depending on a number of (Pro-rata from the variable
factors, including, Age at issue, gender and fixed investment
(where permitted), tobacco usage class and options in which you
risk class of each Insured. The charge is maintain Account Value)
(See Appendex C for information assessed as an amount per $1,000 of Net
on guaranteed cost of insurance Amount at Risk plus a $12 monthly fee. The
rates and Appendix D for rate per $1,000 of Net Amount at Risk
information on current cost of generally increases as the Insured(s)
insurance rates.) age(s). Current Cost of Insurance rates can
be changed during the life of a Policy, but
are subject to guaranteed maximum charges.
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Sales Charge 0.40% per year of the Account Value Monthly for the 1st 10
Policy Years
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Issue Age less than 65 Upon Surrender
----------------------
Yr. 1 - 30%, Yr. 2 - 20%, Yr. 3 - 16%, Yr. 4 - 12%, Yr. 5 - 8%,
Contingent Deferred Sales Charge Yr. 6 - 4%, Yr. 7 - 2%, Yr. 8 and after - 0% (Policy Years 1 through 7)
Issue Age 65 or greater
Yr. 1 - 30%, Yr. 2 - 18%, Yr. 3 - 10%, Yr. 4 - 8%, Yr. 5 - 6%,
Yr. 6 - 4%, Yr. 7 - 2%, Yr. 8 and after - 0%
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Contingent Deferred Sales Charges are only assessed against
Assessable Premium. No Contingent Deferred Sales Charge is
assessed against Exempt Premium.
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Transfer Fee $10.00 After the 12th transfer
each Policy Year
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Partial Withdrawal Transaction Fee $25.00 Upon Partial Withdrawal
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Underlying Portfolio Expenses Each Portfolio has different fees and charges as provided in the Daily
"Variable Investment Options" section of this Prospectus. Total
Portfolio expenses range from x.xx% to x.xx%. More detailed
information about fees and charges can be found in the
prospectuses for the Portfolios.
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Portfolio Annual Expenses
(as a percentage of the average net assets of the Portfolios)
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Below are the investment management fees, other expenses, and the total annual
expenses for each Portfolio as of December 31, 1999. The total annual expenses
are the sum of the investment management fee and other expenses. Each figure is
stated as a percentage of the Portfolio's average daily net assets. For certain
of the Portfolios, a portion of the management fee is being waived and/or other
expenses are being partially reimbursed. "N/A" indicates that no portion of the
management fee and/or other expenses is being waived and/or reimbursed. Any
footnotes about expenses appear after the list of all the Portfolios. Those
Portfolios whose name includes the prefix "AST" are portfolios of American
Skandia Trust. The Portfolio information was provided by the Portfolios and has
not been independently verified by us. See the prospectuses or statements of
additional information of the Portfolios for further details.
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Underlying Mutual Fund Portfolio Annual Expenses
(as a percentage of the average net assets of the underlying Portfolios)
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- -------------------------------------------- ---------------- ------------- --------------- -------------- -------------- ----------
Management Other Estimated Total Annual Fee Net
Fees Expenses Distribution Portfolio Waivers and Annual
UNDERLYING PORTFOLIO and Service Operating Expense Fund
(12b-1) Expenses Reimburse-ment Operating
Fees (1) (2) Expenses
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AST Founders Passport
AST T. Rowe Price International Equity
AST AIM International Equity
AST American Century International Growth
AST MFS Global Equity
AST Kemper Small-Cap Growth
AST Lord Abbett Small Cap Value
AST T. Rowe Price Small Company Value
AST Neuberger Berman Mid-Cap Growth(3)
AST Neuberger Berman Mid-Cap Value(4)
AST Alger All-Cap Growth(5)
AST T. Rowe Price Natural Resources
AST Oppenheimer Large-Cap Growth(6)
AST Marsico Capital Growth
AST JanCap Growth
AST MFS Growth
AST Bankers Trust Managed Index 500
AST Cohen & Steers Realty
AST American Century Income & Growth
AST Lord Abbett Growth and Income
AST MFS Growth with Income
AST INVESCO Equity Income
AST AIM Balanced
AST American Century Strategic Balanced
AST T. Rowe Price Asset Allocation
AST T. Rowe Price International Bond
AST Federated High Yield
AST PIMCO Total Return Bond
AST PIMCO Limited Maturity Bond
AST Money Market
Montgomery Variable Series - Emerging
Markets portfolio
INVESCO VIF Technology
INVESCO VIF Health Sciences
INVESCO VIF Financial Services
INVESCO VIF Telecommunications
INVESCO VIF Dynamics
Evergreen VA Global Leaders
Evergreen VA Special Equity
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1 American Skandia Trust (the "Trust") adopted a Distribution Plan (the
"Distribution Plan") under Rule 12b-1 of the Investment Company Act of 1940
to permit an affiliate of the Trust's Investment Manager to receive
brokerage commissions in connection with purchases and sales of securities
held by Portfolios of the Trust, and to use these commissions to promote
the sale of shares of such Portfolios. The Portfolios would pay the same or
comparable commission amounts irrespective of the Distribution Plan;
accordingly, total returns for the Portfolios are not expected to be
adversely affected. The Distribution Fee estimates are derived from data
regarding each Portfolio's brokerage transactions, and the proportions of
such transactions directed to selling dealers, for the period ended
December 31, 1999. However, it is not possible to determine with accuracy
actual amounts that will be received under the Distribution Plan. Such
amounts will vary based upon the level of a Portfolio's brokerage activity,
the proportion of such activity directed under the Distribution Plan, and
other factors.
2 The Investment Manager of American Skandia Trust has agreed to reimburse
and/or waive fees for certain Portfolios until at least October 17, 2000.
The caption "Total Annual Fund Operating Expenses" reflects the Portfolio's
fees and expenses before such waivers and reimbursements, while the caption
"Net Annual Fund Operating Expenses" reflects the effect of such waivers
and reimbursements.
3 Prior to May 1, 1998, the Investment Manager had engaged Berger Associates,
Inc. as Sub-advisor for the Portfolio (formerly, the Berger Capital Growth
portfolio), for a total Investment Management fee payable at the annual
rate of 0.75% of the average daily nets assets of the Portfolio. As of May
1, 1998, the Investment Manager engaged Neuberger Berman Management
Incorporated as Sub-advisor for the Portfolio, for a total Investment
Management fee payable at the annual rate of 0.90% of the average daily net
assets of the Portfolio. The Management Fee in the above chart reflects the
current Investment Management fee payable to the Investment Manager.
4 Prior to May 1, 1998, the Investment Manager had engaged Federated
Investment Counseling as Sub-advisor for the Portfolio (formerly, the
Federated Utility Income portfolio), for a total Investment Management fee
payable at the annual rate of 0.75% of the first $50 million of the average
daily net assets of the Portfolio, plus .60% of the Portfolio's average
daily net assets in excess of $50 million. As of May 1, 1998, the
Investment Manager engaged Neuberger Berman Management Incorporated as
Sub-advisor for the Portfolio, for a total Investment Management fee
payable at the annual rate of 0.90% of the average daily net assets of the
Portfolio. The Management Fee in the above chart reflects the current
Investment Management fee payable to the Investment Manager.
5 This Portfolio commenced operations as of December 30, 1999. "Other
expenses" shown are based on estimated amounts for the fiscal year ending
December 31, 2000.
6 Prior to December 31, 1998, the Investment Manager had engaged Robertson,
Stephens & Company Investment Management, L.P. as Sub-advisor for the
Portfolio (formerly the Robertson Stephens Value + Growth portfolio), and
the total Investment Management fee was at the annual rate of 1.00% of the
average daily net assets of the Portfolio. As of December 31, 1998, the
Investment Manager engaged OppenheimerFunds, Inc. as Sub-advisor for the
Portfolio, and the Investment Management fee is payable at the annual rate
of 0.90% of the first $1 billion of the average daily net assets of the
Portfolio, plus .85% of the Portfolio's average daily net assets in excess
of $1 billion. The Management Fee in the above chart reflects the current
Investment Management fee payable to the Investment Manager.
DESCRIPTION OF THE OFFERING
This Policy is described using a "question and answer" format that assumes you,
the prospective purchaser, are asking the questions. The paragraphs are numbered
for your convenience.
PURCHASERS
[1] Who should buy this Policy? Life insurance can be bought to meet a number
of needs of individuals or entities, such as corporations or trusts.
Different types of life insurance are designed to address certain needs
more than others. This Policy may be appropriate for a number of persons or
entities, but it may be especially useful for persons addressing a range of
estate planning needs who also may need access to some or all of the Cash
Value to meet supplemental retirement income needs or for emergency
expenses. For estate tax purposes, purchasers may want to consider placing
this type of coverage in a trust or transferring ownership of the Policy in
an effort to remove the asset from their estate, particularly if, at any
point, the purchaser believes the Cash Value may not be needed as a
resource for other purposes. This Policy may also be useful for persons
seeking to make a sizable donation to a charity or eligible non-profit
organization, where the charity is named both Owner and Beneficiary of the
Policy, and the donor is named as the Insured. You should carefully
evaluate with your financial representative whether this Policy is right
for your specific needs in light of your entire situation and your personal
and financial goals. In particular, you should evaluate the advantages and
disadvantages of replacing any existing life insurance or annuity coverage
with this Policy. If you are seeking specific tax consequences, you should
consult with a competent tax advisor as to whether and how your goals may
best be achieved. These policies may not be an appropriate investment if
purchased within a retirement plan qualified under the Code. You should
consult a competent tax advisor or financial professional about using these
policies in such plans.
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American Skandia offers several different types of variable life insurance
policies which your financial professional may be authorized to offer to you.
Each of these policies can be structured to address a particular life insurance
need that you may have. The features, benefits and charges may differ to some
degree between each policy we offer. Some of these differences can affect the
amount of your death benefit, the degree to which you can access some of the
policy's Cash Value through loans and withdrawals and the charges that you will
be subject to if you choose to surrender the policy. The compensation that we
pay for sales of these policies may also differ.
- --------------------------------------------------------------------------------
This Policy is available to purchasers with a Specified Amount of $50,000 or
greater. We offer a similar policy to purchasers who have a minimum Specified
Amount of $500,000 under a separate prospectus. The minimum initial Premium
payment also differs between both policies. The contingent deferred sales charge
on this Policy has a shorter duration, than on the other policy, but upon
surrender of the Policy during the initial Policy Years, the amount of the
charge is higher. The contingent deferred sales charge on the other policy has a
longer duration but upon surrender of the Policy during the initial Policy
Years, the amount of the charge is lower. The duration and amount of the
contingent deferred sales charge has an impact on the Cash Value of your Policy.
To the extent that Policy benefits are based on the Cash Value, in particular
the availability of Policy loans, this can be an important factor to consider.
BENEFITS AT THE INSURED'S DEATH
[2] What benefits are due as a result of the Insured's death? The benefits
due as a result of the Insured's death are the Death Proceeds. If there
are joint Insureds, the benefits are due as a result of the death of
the last surviving Insured. The Death Proceeds are based on the Death
Benefit as of the date we receive all our requirements for paying a
death claim and are satisfied that the death claim can be paid. These
requirements include, but are not limited to, receipt of a valid death
certificate and information we need to make payments to all
Beneficiaries.
We determine the Death Proceeds by first subtracting any Debt and any
unpaid charges due from the Death Benefit. We then add any interest
amount required by law.
[3] What is the Death Benefit? The Death Benefit is the greatest of the
Basic Death Benefit, the Minimum Required Death Benefit and the
Guaranteed Minimum Death Benefit, each are described in more detail
below. The Death Benefit is determined as of the date we receive due
proof of death.
[4] What is the Basic Death Benefit? Do you offer different Death Benefit
Options? The Basic Death Benefit depends on which of the four (4) Death
Benefit Options you select. The Death Benefit options are Option I
(Level), Option II (Variable), Option III (Return of Premium) and
Option IV (Return of Premium with Interest), as described in the table
below. Your choice of Death Benefit Option will produce a different
Basic Death Benefit calculation as of the Policy Date and in the
future.
------------------------------ --------------------------------------------------------------------------------------------
Death Benefit Option Basic Death Benefit
------------------------------ --------------------------------------------------------------------------------------------
------------------------------ --------------------------------------------------------------------------------------------
Option I - Specified Amount
LEVEL
------------------------------ --------------------------------------------------------------------------------------------
------------------------------ --------------------------------------------------------------------------------------------
Option II - Specified Amount plus the Account Value
VARIABLE
------------------------------ --------------------------------------------------------------------------------------------
------------------------------ --------------------------------------------------------------------------------------------
Option III - Specified Amount, plus total Premium paid* less net withdrawals
RETURN OF PREMIUM
------------------------------ --------------------------------------------------------------------------------------------
------------------------------ --------------------------------------------------------------------------------------------
Option IV - Specified Amount, plus total Premiums
RETURN OF PREMIUM paid* less net withdrawals with each
WITH INTEREST Premium payment and withdrawal
accumulated at a compound annual
interest rate from the date applied
until the date of due proof of death.
We offer a range of interest rates for
the Policy owner to choose from.
------------------------------ --------------------------------------------------------------------------------------------
* With respect to Option III and Option IV, we will only consider
Premiums paid and any annual interest accumulated on Premium (Option IV
only) on or before Age 70. Following Age 70, the Basic Death Benefit
for Options III and IV will be fixed. Total Premiums will not include
Premiums paid for any optional benefits that we may make available.
Special rules also apply for Policies that result from an exchange of
an existing life insurance policy.
[5] What is the Specified Amount? The Specified Amount is a measuring
device we use in determining the Death Benefit before the Insured's Age
100. On your Application, you indicate the Specified Amount you want us
to issue for your Policy. We may issue that amount, or we may offer to
issue a lower Specified Amount if the Insured(s) do(es) not qualify for
the amount you seek under our underwriting rules. The minimum Specified
Amount is currently $50,000 for a single life Policy and $100,000 for a
joint life Policy. The Specified Amount remains level unless you
request an increase or decrease and we agree to such a change. Under
certain circumstances, a partial withdrawal may also reduce the
Specified Amount, as discussed in the section on Partial Withdrawals.
[6] What is the Minimum Required Death Benefit? The Minimum Required Death
Benefit is the minimum amount that must be payable at the Insured's
death, before reduction for any Debt, for the Policy to be treated as
life insurance under the Code. The Minimum Required Death Benefit
changes as the Account Value changes. We determine the Minimum Required
Death Benefit by multiplying the Account Value by factors that vary by
the attained Age, gender (where permitted), tobacco usage class and
risk class of each Insured. The factors will also differ depending on
the applicable test you elect for your Policy to qualify as life
insurance under the Code. When there are joint Insureds, the factors
used to determine the Minimum Required Death Benefit are based on an
actuarial derivation of the factor applicable for each Insured. The
gender and risk class of the Insured does not change, so the only
element that changes the factors and effects the Minimum Required Death
Benefit after the Policy Date is the aging of the Insured, unless the
Insured applies for and we agree to a change in tobacco usage class.
The factors we apply to determine the Minimum Required Death Benefit
are shown in Appendix B.
[7] What is the Guaranteed Minimum Death Benefit? The Guaranteed Minimum
Death Benefit is used to determine the Death Benefit when it is greater
than the Basic Death Benefit, based on the Death Benefit Option you
chose, and the Minimum Required Death Benefit, according to the
applicable test you elect for your Policy to qualify as life insurance
under the Code. There is no Guaranteed Minimum Death Benefit beyond Age
100 of the Insured, or if the policy terminates before the Insured's
death.
The Guaranteed Minimum Death Benefit under the following circumstances
are:
|X| On the Policy Date: the Guaranteed Minimum Death Benefit equals
the initial Premium.
|X| After the Policy Date and until the first Policy Anniversary: the
Guaranteed Minimum Death Benefit is the total of all Premiums
paid, less any partial withdrawals.
|X| After the first Policy Anniversary but before the "target date":
(the Policy Anniversary when the Insured is Age 75), the
Guaranteed Minimum Death Benefit is the higher of the total of
all Premiums paid less all partial withdrawals and the highest
"Anniversary Value," which is the Account Value on any Policy
Anniversary less all subsequent partial withdrawals.
|X| On or after the "target date": the Guaranteed Minimum Death
Benefit is the higher of the total of all Premiums paid less all
partial withdrawals and the highest Anniversary Value as of the
"target date," less all partial withdrawals after the "target
date." If there are two Insureds, the Guaranteed Minimum Death
Benefit ends based on the Age of the younger Insured, or what
would have been the age of the younger Insured if the younger
Insured predeceases the older Insured.
|X| If the Insured is Age 75 or older on the Policy Date: the
Guaranteed Minimum Death Benefit is the total of all Premiums
paid less all partial withdrawals.
|X| If the Policy is issued for two (2) Insureds: the "target date"
is based on the age of the younger Insured, or what would have
been the age of the younger Insured if the younger Insured
predeceases the older Insured. This also applies if, as of the
Policy Date, the younger Insured is younger than Age 75.
[8] Is there any age limit on the Death Benefit? Yes. On a single life
Policy, on or after the Policy Anniversary the Insured attains Age 100,
the Death Benefit equals the Account Value. On a joint life Policy, on
or after the Policy Anniversary the younger Insured, attains or, if
that person is deceased, would have been, Age 100, the Death Benefit
equals the Account Value.
[9] Does choosing between Death Benefit Options affect anything other than
the Death Benefit? Yes. Choosing a Death Benefit Option affects the Net
Amount at Risk which can have an impact on the amount you pay in cost
of insurance charges. How these charges work are discussed in more
detail below in the section on "Costs." An increase in charges has a
negative impact on the growth of your Account Value. A decrease in
charges has a positive impact on the growth of your Account Value.
[10] Who chooses which option to use? You choose the option on your
Application for a Policy. If you do not elect a Death Benefit Option on
your Application we will review the Application to determine if our
underwriting requirements are met. However, we will require you to
elect Death Benefit Option I, II, III or IV prior to issuing a Policy.
[11] May I change the Death Benefit Option or the Specified Amount? While
the Insured is alive, you may request to change the Death Benefit
Option or to increase or decrease the Specified Amount to meet changing
needs or goals.
Any change to the Death Benefit Option is subject to our acceptance and
our rules, which include, but are not limited to the following:
|X| Any change must take effect after the first Policy Year.
|X| We only permit one such change per Policy Year.
|X| We must receive the request In Writing at our Office.
|X| We may require satisfactory evidence of insurability for any
change that prospectively increases the Net Amount at Risk or any
change to Death Benefit Option III or IV.
|X| If evidence of insurability is required, we will not accept the
request if the Insured(s) is over our then current maximum age
for issuing a Policy.
|X| We may require you to sign an acknowledgment that you understand
the impact or potential impact of the change on the tax treatment
of your Policy, particularly if the change results or may result
in your Policy becoming a MEC. Changing between Death Benefit
Options also may have an impact on whether a Policy is treated as
a MEC. Therefore, you should consult with a competent tax advisor
before requesting a change.
|X| If we grant any such request, it will take effect on the Monthly
Processing Day occurring on or immediately following the date we
agree to such a change.
|X| On the date the change takes effect, there will be no change in
the Death Benefit. That means that, if you change from Option I
to Option II, the Specified Amount will be reduced.
Any change to the Specified Amount is subject to our rules, which
include, but are not limited to the eight rules outlined above for
changing the Death Benefit Option, plus the following additional rules:
|X| The amount of any increase or decrease may not be less than
$5,000.
|X| The Specified Amount after any decrease may not be less than the
minimum Specified Amount for your Policy.
|X| No decrease in the Specified Amount is permitted during the first
seven Policy Years or during the five calendar years subsequent
to any increase in Specified Amount.
[12] What other parts of the Policy are affected if I change the Specified
Amount? Increasing the Specified Amount initially results in a higher
Death Benefit, unless the increased Specified Amount would then not
exceed the Minimum Required Death Benefit or the Guaranteed Minimum
Death Benefit. When the Death Benefit is increased in this way, it
initially increases the Net Amount at Risk, and therefore, the cost of
insurance charge. Decreasing the Specified Amount generally has the
opposite effects. Changing the Specified Amount could affect the
maximum Premiums you may pay, as well as the Maximum Annual Assessable
Premium. Also, if your policy is not deemed to be a MEC, changing the
Specified Amount may affect how much Premium you may subsequently pay
without the Policy becoming a MEC.
[13] How are Death Proceeds paid and to whom are they paid? We pay the Death
Proceeds as a lump sum or in accordance with the terms of whatever
settlement options we then make available to Beneficiaries. Generally,
Beneficiaries can choose a lump sum or one of the settlement options we
make available. However, you may choose the method of payment for your
Beneficiaries if you notify us In Writing before the Insured's death
how you want the Death Proceeds to be paid.
ACCOUNT VALUE AND CASH VALUE
[14] What is the Account Value? The Account Value is the value of a Policy
before any deduction for any contingent deferred sales charge and
before any reduction for any Debt. It is the total of the Account Value
allocated to each Sub-account and any Fixed Allocations plus any
Account Value in the Loan Account. You may allocate Account Value to
the variable investment options, which are each of the Sub-accounts of
the Separate Account, or to Fixed Allocations. Any portion of the
Account Value maintained in the Loan Account serves as collateral for
outstanding Policy loans.
[15] How do we determine the Account Value?
Variable Investment Options: On each Valuation Date, the Account Value
in any variable investment option you utilize equals the number of
Units you then maintain in that investment option multiplied by that
investment option's then current Unit Price. When you allocate all or a
portion of the Premium to an investment option or when you transfer
Account Value into a variable investment option, Units are purchased
using the then current Unit Price. When you take all or a portion of a
distribution or benefit from a variable investment option or you
transfer Account Value from a variable investment option, Units are
sold at the then current Unit Price in order to fund that distribution,
benefit or transfer.
Fixed Allocations: We credit a fixed rate of interest to Fixed
Allocations. From time to time we declare interest rates applicable to
new Fixed Allocations. If you make a Fixed Allocation, we credit the
rate then in effect to that Fixed Allocation until the next Policy
Anniversary. Once that Policy Anniversary is reached, we credit, for
the next Policy Year, the then current rate applicable to new Fixed
Allocations. This applies to all your Fixed Allocations then in effect.
During each subsequent Policy Year, the rate we credit for that Policy
Year is the one then in effect for new Fixed Allocations.
- --------------------------------------------------------------------------------
The Policy offered pursuant to this Prospectus includes Fixed Allocations. These
Fixed Allocations are not registered as a security with the Securities and
Exchange Commission under either the Securities Act of 1933 or the Investment
Company Act of 1940. The Fixed Allocations are not subject to these Acts.
Information about the Fixed Allocations is included in this Prospectus to help
with your understanding of the features of the Policy. The staff of the
Securities and Exchange Commission has not reviewed this information. However,
the information may be subject to certain generally applicable provisions of the
Federal securities laws regarding accuracy and completeness. The assets
supporting Fixed Allocations are held in American Skandia's general account.
- --------------------------------------------------------------------------------
[16] How does American Skandia determine the interest rate for Fixed
Allocations? We determine the interest rate applied to Fixed
Allocations based on our assessment of the earnings we expect to
achieve when investing to support these obligations, our costs,
competition, profit targets and other factors. We have sole discretion
to determine the rates. However, the interest rate will never be less
than 3.0% per year, compounded yearly.
[17] How does American Skandia determine the Account Value in the Loan
Account? We credit interest to Account Value in the Loan Account at a
rate determined by whether the loan is a "preferred" loan or a
"standard" loan, as described in the section entitled "Loans." As of
the date of this Prospectus, we currently credit interest to Account
Value in the Loan Account at the rate of 6.0% per year, compounded
yearly on "preferred" loans and 5.85% per year compounded yearly on
"standard" loans. However, to the extent permitted by law, we retain
the right to credit less, but never less than 5.5% per year, compounded
yearly. See the section entitled "Loans" for a description of standard
and preferred loans.
[18] What is the Cash Value? The Cash Value is the total Account Value less
any contingent deferred sales charge, unpaid charges and Debt.
[19] Do I have to maintain a minimum Cash Value? There must always be enough
Cash Value so that, on any Monthly Processing Date, the Cash Value is
sufficient to pay for the charges then due. If the Cash Value is
insufficient to pay for the charges, we send you a notice giving you a
61-day "grace period" to send us a required amount. If the Cash Value
at the end of the grace period, after deduction for all previously
unpaid charges, is zero or less, the Policy ends without value, unless
you are eligible for the guaranteed continuation. This provision is
discussed in the section "Keeping the Policy In Force".
CASH VALUE CREDITS
[20] What are Cash Value Credits? Cash Value Credits are amounts we credit
to your Account Value based on growth in your Policy's Cash Value OR
based on the total amount of your Premium payments. We determine if
your Policy is eligible for Cash Value Credits on each Policy
Anniversary. Once your Policy qualifies to receive Cash Value Credits,
we will credit 0.50% of your Policy's Cash Value to your Account Value
on each Policy Anniversary thereafter.
[21] How does my Policy qualify for Cash Value Credits? You can qualify for
Cash Value Credits based on your Policy's Cash Value or cumulative
Premiums. To qualify for Cash Value Credits as of any Policy
Anniversary:
|X| the Cash Value of your Policy must equal or exceed 200% (2X) of
the Premiums you have paid as of the Policy Anniversary date you
qualify; or
|X| your Policy must have been in force for seven (7) years and the
cumulative Premiums (minus any Debt) paid prior to the seventh
Policy Anniversary or prior to a later anniversary must equal or
exceed the sum of seven (7) Maximum Annual Assessable Premiums.
NOTE: The Cash Value may be less than the Account Value due to the
contingent deferred sales charge and any Debt, and will be affected by
the investment performance of the investment options, any partial
withdrawals, Debt and whether you pay back any loans or loan interest.
[22] Who pays for the Cash Value Credits, and how are they paid? We pay for
any Cash Value Credits out of our general account. We allocate any Cash
Value Credits due on the applicable Policy Anniversary to the variable
investment options and Fixed Allocations in which you then maintain
Account Value. We make the allocations pro-rata based on the Account
Value in the variable investment options and any Fixed Allocations on
the applicable Policy Anniversary. No allocation is made to the Loan
Account. Cash Value Credits cannot be used to repay Debt.
COSTS
[23] What kinds of charges are there for this Policy? The Policy has five
(5) different kinds of charges: (1) charges we deduct from Premiums;
(2) charges we assess daily against assets maintained in the Separate
Account, which only apply to the Account Value you allocate to the
variable investment options; (3) charges we deduct monthly from the
Account Value and which are due in all Policy Years to Age 100; (4)
charges we deduct monthly from the Account Value only for the first ten
Policy Years; and (5) "contingent" charges, which are those charges
that you only pay in certain specified circumstances. There also are
fees and expenses charged by the Portfolios.
[24] What charges are deducted from Premiums? We deduct a percentage of each
Premium in relation to state and local premium taxes we may incur on
that Premium, and an amount in relation to our Federal taxes. In most
jurisdictions these rates range for 0% to 3.5% of each Premium. We
deduct these charges before we allocate the net amount to the
investment options.
[25] What is the charge in relation to the Company's Federal taxes? The Code
requires a life insurer to capitalize an imputed acquisition expense,
thereby increasing its tax liability over what it would be without this
special provision. The tax liability created by this imputed
acquisition expense is sometimes referred to as a "deferred acquisition
cost" tax or "DAC" tax. To reimburse us for this special insurance
company tax at a rate we believe to be reasonable in relation to the
liability, we deduct an amount equal to 1.15% of each Premium.
[26] What are the charges assessed against the Separate Account and when are
they paid? We assess a mortality and expense risk charge and an
administration charge against the assets in the Separate Account. The
mortality and expense risk charge is 0.90% per year for Policy Years 1
through 15 and 0.25% for Policy Years 16 and thereafter. The mortality
and expense risk we assume is that charges and fees under the Policy
will be insufficient to meet our long-term costs and expenses in
issuing, administering and paying claims based on our obligations under
the Policy. The charge for the administrative expenses connected with
operating the Separate Account is 0.25% per year. The 0.25% charge for
administrative expenses does not decrease after the 15th Policy Year.
We assess these charges each Valuation Period against the daily value
of each Sub-account. We reserve the right to assess the Separate
Account for any taxes that may be attributed to it. Currently, no such
charge for taxes is assessed.
[27] What monthly charge applies in all Policy Years to Age 100? We deduct
the cost of insurance charge until the Policy Anniversary on or
immediately after the Insured's 100th birthday. For Policies with two
Insureds, this is the Policy Anniversary on or after the 100th birthday
of the younger Insured, or if that person is deceased, what would have
been that Insured's 100th birthday. We take this charge from your
Account Value each Monthly Processing Day.
[28] How much is the cost of insurance charge? The monthly cost of insurance
charge is determined by multiplying the current monthly cost of
insurance rate by the Net Amount at Risk. To that amount we add a cost
of insurance fee. The current cost of insurance rates and cost of
insurance fee are subject to change; however, the combination will not
exceed the product of the guaranteed maximum cost of insurance charge
multiplied by the Net Amount at Risk. The cost of insurance charge is
not a constant dollar amount.
Please note that in calculating the Net Amount at Risk, the Death
Benefit that would then apply is the highest of the Basic Death Benefit
(which depends on the Death Benefit Option you choose), the Minimum
Required Death Benefit, or the Guaranteed Minimum Death Benefit. The
cost of insurance rates increase as the Insured ages, although the
rates may not increase each Policy Year. We reserve the right to vary
the rates per thousand of Net Amount at Risk based on either the Net
Amount at Risk or on the Specified Amount.
We reserve the right to adjust current monthly cost of insurance rates
by an underwriting factor. As of the date of this Prospectus, we were
not making any such adjustments.
The guaranteed maximum monthly cost of insurance charges for Policies
with one Insured are shown in Appendix C. The current monthly cost of
insurance rates as of the date of this Prospectus for Policies with one
Insured are shown in Appendix D. Corresponding rates for two proposed
Insureds are available from us upon request. A detailed explanation of
how we calculate the current monthly cost of insurance charges and a
sample calculation are provided in Appendix E. The guaranteed maximum
monthly cost of insurance charges shown in Appendix C and the current
monthly cost of insurance rates shown in Appendix D are for Insureds in
the preferred risk class. These amounts will differ for Insureds in a
substandard risk class.
[29] What is the guaranteed maximum cost of insurance charge? The guaranteed
maximum cost of insurance charge is different at each Age. The
guaranteed maximum cost of insurance charge depends on the tobacco
usage class and risk class of each Insured. We base the guaranteed
maximum cost of insurance charges on the sex distinct 1980
Commissioners Standard Ordinary Ultimate Mortality Smoker/Non-Smoker
Table, age last birthday. However, if required by law, unisex charges
will apply, and we will use a unisex variation of that table. If we use
unisex rates, generally cost of insurance charges will increase for
females and will decrease for males. Charges for substandard risk
classes are based on a multiple of the table rates.
[30] What monthly charges apply only for a specified number of Policy Years?
We deduct a sales charge for a specified number of Policy Years.
[31] How much is the sales charge and when do I pay it? We deduct the sales
charge during the first ten (10) Policy Years. It is a percentage of
your Account Value and is the equivalent of 0.40% per year. We deduct
this charge from your Account Value each Monthly Processing Day.
[32] What are the contingent charges? The contingent charges are: (1) the
contingent deferred sales charge; (2) the transfer fee; and (3) the
partial withdrawal transaction fee.
[33] How much is the contingent deferred sales charge, and when must I pay
it? The contingent deferred sales charge is a percentage of the
Assessable Premium paid. It is charged if you surrender the Policy
during certain periods, unless the Policy qualifies for a
medically-related waiver of these charges, as discussed in the section
of this Prospectus entitled "Medically-Related Waiver".
The percentages that we assess against Assessable Premium upon a
surrender are as follows:
-----------------------------------
ISSUE AGE LESS THAN 65
-----------------------------------
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
Policy Year 1 2 3 4 5 6 7 8+
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
Percentage (%) 30 20 16 12 8 4 2 0
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
-----------------------------------
ISSUE AGE 65+
-----------------------------------
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
Policy Year 1 2 3 4 5 6 7 8+
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
Percentage (%) 30 18 10 8 6 4 2 0
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
[34] How do we determine the Assessable Premium? The Assessable Premium
equals the total Premiums less the total Exempt Premiums.
[35] What are Exempt Premiums? Exempt Premiums are the portion of Premiums
paid in any Policy Year that exceed the Maximum Annual Assessable
Premium. We do not charge a contingent deferred sales charge upon
surrender or withdrawal of Exempt Premiums.
[36] What is the Maximum Annual Assessable Premium? The Maximum Annual
Assessable Premium is an amount per thousand of Specified Amount. The
amount is cumulative from year to year. For example, if your Maximum
Annual Assessable Premium is $5,000 and you make a Premium payment of
$4,000 in Policy Year 1, in Policy Year 2 your Maximum Annual
Assessable Premium is $5,000 plus $1,000 from Policy Year 1, or $6,000.
The Maximum Annual Assessable Premium depends on the Age, tobacco usage
class, risk class and, where permitted, gender of the Insured. The
Maximum Annual Assessable Premium is increased if you increase the
Specified Amount, and is decreased if you decrease the Specified
Amount. We have provided a table in Appendix F of the Maximum Annual
Assessable Premium for Policies with one Insured. The amounts shown in
Appendix F are applicable for Insureds in the preferred risk class. The
Maximum Annual Assessable Premium for Insureds in a substandard risk
class may be higher than for Insureds in a preferred risk class.
[37] What would it cost to surrender the Policy? In each hypothetical
example we assume that neither the Specified Amount nor the Death
Benefit Option is changed after the Policy Date, and that the Insured's
Issue Age is 60.
|X| Assume that the Maximum Annual Assessable Premium is $10,000 and
that $10,000 of Premium was paid in each of Policy Years 1
through 5, for a total of $50,000. Assume further that the Policy
is being surrendered in Policy Year 6 and that at the time of
surrender, the Account Value is $75,000. Given these facts, the
Assessable Premium equals the Premiums paid. No amount paid in
any Policy Year exceeded the Maximum Annual Assessable Premium.
The contingent deferred sales charge for a surrender in Policy
Year 6 is 4% of the Assessable Premium (4% of $50,000 or $2,000).
The amount payable upon surrender would be $75,000 less $2,000,
which equals $73,000.
|X| Assume that the Policy is an Exchange Policy and that the
proceeds of the exchange were $50,000, which was the initial
Premium. Assume further that the Maximum Annual Assessable
Premium is $10,000 and that $5,000 of subsequent Premium was paid
in the second Policy Year. Assume further that the Policy is
being surrendered in Policy Year 6 and that at the time of
surrender, the Account Value is $85,000. Given these facts, the
Assessable Premium is less than the Premiums paid. The amount of
Premium paid in the first Policy Year over $10,000 is Exempt
Premium. Since $50,000 was paid in the first Policy Year, the
amount of the Exempt Premium paid in that Policy Year was $50,000
minus $10,000, or $40,000. There was no Exempt Premium in the
second Policy Year, since $5,000 is less than the applicable
Maximum Annual Assessable Premium for the second Policy Year. The
contingent deferred sales charge for a surrender in Policy Year 6
is 4% assessed against $55,000 of Premium less $40,000 of Exempt
Premium (4% of $15,000 or $600). The amount payable upon
surrender would be $85,000 less $600, which is $84,400.
[38] Are there any situations in which the sales charge and the contingent
deferred sales charge do not apply? No sales charge or contingent
deferred sales charge is imposed when, as of the Policy Date, the Owner
or the Insured of a Policy issued pursuant to this Prospectus is: (a)
any parent company, affiliate or subsidiary of ours; (b) an officer,
director, employee, retiree, sales representative, or in the case of an
affiliated broker-dealer, registered representative of such company;
(c) a director, officer or trustee of any underlying mutual fund; (d) a
director, officer or employee of any investment manager, sub-advisor,
transfer agent, custodian, auditing, legal or administrative services
provider that is providing investment management, advisory, transfer
agency, custodianship, auditing, legal and/or administrative services
to an underlying mutual fund or any affiliate of such firm; (e) a
director, officer, employee or registered representative of a
broker-dealer or insurance agency that has a then current selling
agreement with us and/or with American Skandia Marketing, Incorporated;
(f) a director, officer, employee or authorized representative of any
firm providing us or our affiliates with regular legal, actuarial,
auditing, underwriting, claims, administrative, computer support,
marketing, office or other services; (g) the then current spouse of any
such person noted in (b) through (f) above; (h) the parents of such
person noted in (b) through (g) above; (i) such person's child(ren) or
other legal dependent under the age of 21; and (j) the siblings of any
such persons noted in (b) through (h) above.
[39] Do you offer special arrangements for corporate or other purchasers? To
the extent permitted by law, for corporate or other group or sponsored
arrangements purchasing one or more Policies, we may reduce the amount
of the mortality and expense risk charge, sales charge and the
contingent deferred sales charge, the period during which such charges
apply, or both, where the expenses associated with the sale of, or the
underwriting or other administrative costs associated with the Policies
are reduced. Sales, underwriting or other administrative expenses may
be reduced based on such factors as expected economies resulting from a
corporate purchase or a group or sponsored arrangement, the amount of
initial and/or expected Premiums or other transactions where sales
expenses are likely to be reduced. We may also alter the terms of
certain Policy provisions, including the availability of death benefit
options and the Cash Value Credit provision for these types of
purchasers. We will not discriminate unfairly between purchasers if and
when we reduce any of the charges discussed above, make changes to the
duration such charges will apply or alter the terms of Policy
provisions.
[40] How much is the transfer fee and when must I pay it? We charge $10.00
for every transfer after the 12th in each Policy Year. That includes
transfers into a Fixed Allocation and any transfers from a Fixed
Allocation unless the transfer occurs on a Policy Anniversary. It does
not include transfers made as part of any dollar cost averaging program
we offer. For this purpose, all transfers occurring during the same
Valuation Period are considered one transfer. We assess the transfer
fee at the time of any transfer which is subject to the fee.
[41] How much is the partial withdrawal transaction fee, and when must I pay
it? We charge $25.00 as a transaction fee for each partial withdrawal
unless the partial withdrawal qualifies as a medically-related
withdrawal. This amount is deducted separately from your Account Value.
[42] How are charges deducted from Account Value? We deduct charges from
your investment options pro-rata based on the Account Value in each
investment option. If you maintain Account Value in more than one Fixed
Allocation in a Policy Year, any applicable charges will be deducted on
a "last-in, first-out" basis, starting with the last Fixed Allocation
that was made prior to the Monthly Processing Date the deduction is
made. Upon surrender or withdrawal, we assess charges against the
investment options pro-rata in the same ratio as Account Value is being
withdrawn from such investment options.
[43] What charges do the Portfolios make? We do not assess any charges
against the Portfolios. However, each Portfolio charges a total annual
fee comprised of an investment management fee and operating expenses.
Expenses for the Portfolios are provided in the "Variable Investment
Options" section below. More detailed information about fees and
charges can be found in the prospectuses for the Portfolios.
BUYING A POLICY
[44] How do I buy a Policy? We have established certain underwriting
standards to determine insurability. We require you to submit an
Application to provide information that enables us to determine if our
standards have been met. We may require additional information,
including, but not limited to, some of the proposed Insured's medical
records and may also require the proposed Insured to take certain
medical tests. We evaluate this information to determine whether we can
issue a Policy. When we evaluate whether to issue a Policy, we will
also determine whether the proposed Insured is in the tobacco usage
class and/or must be placed in a substandard risk class. If the
proposed Insured meets our standards and we have received a Premium, we
will issue a Policy. When issued, your Policy will indicate if the
Insured is in the tobacco usage class and whether the Insured was
placed in a substandard risk class in order to issue the Policy. If our
standards are not met and we received a Premium, we will return an
amount equal to the Premium to you. No interest will be paid.
Age Restrictions:
For Single Life Policies - The Insured may not be older than
Age 80 on the Policy Date. There is no minimum age limit.
For Joint Life Policies - The Insureds may not be less than
Age 18 or older than Age 80 on the Policy Date.
Additional age restrictions may apply if you elect Death
Benefit Option III or IV.
Tobacco Usage Class: The Insured's tobacco usage class is a factor used
to determine the Specified Amount, the Minimum Required Death Benefit,
the Guaranteed Maximum Monthly Cost of Insurance Charge and the Current
Monthly Cost of Insurance rates. If the Insured was included in the
tobacco usage class on the Policy's Issue Date and subsequently ceases
to be a tobacco user after the first Policy Year, the Insured may apply
for a change in status.
Substandard Risk Class: If the Insured is placed in a substandard risk
class, the factors used to determine the Minimum Required Death
Benefit, the Guaranteed Maximum Monthly Cost of Insurance Charge and
the Current Monthly Cost of Insurance rates under the Policy will be
different than for an Insured in the preferred risk class. For Insureds
in a substandard risk class, the change in these factors will generally
result in a higher monthly cost of insurance charge and may result in a
lower Death Benefit as compared to an Insured in the preferred risk
class. Higher monthly cost of insurance charges will have an impact on
the Account Value and Cash Value of your Policy. NOTE: Where allowed by
law, Policies issued to Insured(s) in a substandard risk class may not
be eligible for certain benefits under the Policy.
To the extent permitted by law, we reserve the right to apply differing
standards of insurability to persons who may be part of a group or who
may qualify, for some other reason, as part of a different class. Such
classes may include, but are not limited to, persons seeking a Policy
who are applying all or a portion of proceeds from an insurance or
annuity contract, or proceeds of a redemption from another financial
product, such as mutual funds. One of the criteria we may apply in such
a situation is that such differing standards of insurability apply only
after maintaining funds in such policy, contract, or financial product
for a specified period of time.
[45] When do I pay the initial Premium? You may submit Premium with the
Application if the Insured meets certain medical underwriting criteria.
If any portion of any Premium is to be received as part of a
replacement of a life insurance policy (whether or not a tax-free
exchange), endowment or annuity policy then we must receive all our
requirements In Writing for all such replacements as of the same date.
This date must be prior to the date we decide to issue a Policy.
Replacements are subject to our acceptance.
If we do not accept Premium with the Application or you choose not to
submit a Premium with the Application, we will notify you if and when
we have accepted the Application and agreed, subject to submission of
the Premium, to issue a Policy. We will let you know at that time the
minimum and maximum amounts we accept as the initial Premium. We will
not issue a Policy until we receive at least the minimum initial
Premium at our Office.
You may choose to use our funds transfer authorization procedures as
part of buying a Policy. If you elect this procedure, you authorize us
to redeem funds from one or more financial institutions with which you
currently maintain funds and use those funds to pay Premium. You must
do so In Writing using a form that authorizes us to obtain such funds
only if and when we have determined that the Application meets our
standards for issuing a Policy. If you use this procedure, you must
provide us with all such authorizations simultaneously.
[46] What is the initial Premium? There is not a fixed amount of initial
Premium. Instead, we accept a range of initial Premium between a
minimum and a maximum. The minimum and maximum depends on the Specified
Amount and the Insured's age, tobacco usage class, risk class and
gender, where permitted, as of the Policy Date.
[47] What is the maximum initial Premium I can pay? The maximum initial
Premium we accept equals the maximum amount that can be paid without
increasing the Death Benefit on the Policy Date. This may depend on the
test you elect for your Policy to qualify as life insurance under the
Code. However, if you submit any Premium before we have determined
whether you meet our requirements for issuing a Policy, we will not
accept more than $500,000 without prior Home Office approval.
[48] What is the minimum initial Premium I can pay? The minimum Premium we
generally accept as an initial Premium is one-fourth (1/4th) of the
Maximum Annual Assessable Premium. We may accept less under certain
circumstances, such as when you authorize periodic withdrawals from an
account you may have with a bank or other financial institution in
amounts designed to cumulatively pay amounts equal to the minimum
Premium requirements. We may require a larger minimum Premium on
Policies issued to Insureds in a substandard risk class.
[49] Will you accept my initial Premium if it causes my Policy to be treated
as a MEC? We will not apply the portion of an initial Premium that we
believe would require us to treat your Policy as a MEC unless you
acknowledge In Writing before the Policy Date that we will treat the
Policy as a MEC. If we do not receive such notification, we will return
to you the difference between the amount you submitted and the amount
we will apply as the initial Premium. However, this will not apply in
the case of an Exchange Policy where we receive information we believe
requires us to treat the Exchange Policy as a MEC in any case.
[50] Do I have coverage while my Application is being reviewed? We may issue
you a temporary insurance agreement during the "underwriting period."
The "underwriting period" is the period between the time you first
apply for a Policy and the time we either issue the Policy or decide
not to issue one. A temporary insurance agreement may be issued if: (a)
the Application is completed in full; (b) the Insured answers "no" to
certain questions on the Application (these are questions we use as
indicators of whether we will issue temporary insurance); (c) no
Insured is under age 18; and (d) a Premium is submitted with the
Application. If we issue a temporary insurance agreement and the
Insured (both Insureds if there are two Insureds) dies during the
underwriting period, the temporary insurance benefit will be payable if
all the conditions of the temporary insurance agreement are satisfied.
If the Insured(s) die(s) during the underwriting period and no
temporary insurance agreement was in effect, no benefit is payable.
We will return any Premium submitted with the Application if we cannot
complete underwriting within 60 days from the date the Application is
signed. If you notify us promptly, we will continue the underwriting
process and notify you if and when you meet our standards for issuing a
Policy, at which time you may once again send us a Premium. Temporary
insurance lasts no longer than 90 days.
[51] What is the temporary insurance benefit? If the Insured dies while
temporary insurance is in effect, we pay the Beneficiary the lesser of
the Death Benefit that would be in effect on the Policy Date if a
Policy had been issued or $250,000. This $250,000 maximum applies to
all temporary insurance then in effect with us. Premium amounts in
excess of this benefit are returned to you, without interest or
earnings.
[52] What happens if I change my mind about buying a Policy? You have a
"free-look" period during which you can change your mind about buying a
Policy. The free-look period is never less than 10 days from the date
you receive your Policy. It may be longer depending on the applicable
state law and the circumstances of your purchase. If you return your
Policy to us within the free-look period, we generally will return the
greater of (1) the Premiums paid, or (2) your Account Value plus an
amount that equals any premium tax and DAC tax deducted and any charges
deducted from your Account Value. However, if you have submitted a
"return waiver," we will return only your Account Value plus any
premium and DAC taxes deducted and any charges deducted from your
Account Value. This may be more or less than the Premiums paid.
[53] How and when is my initial Premium invested? We invest your Net
Premium, which is the Premium less the charges deducted from each
Premium and any charge for optional additional benefits (should you
elect such benefits). We invest the initial Net Premium on the Policy
Date. You can request that we allocate the initial Net Premium using
one or more variable investment options and/or a Fixed Allocation.
However, we initially invest the portion of the initial Net Premium
that you indicate you want invested in variable investment options in
the AST Money Market Sub-account, unless you submit a "return waiver"
In Writing before the Policy Date, where permitted by law. This also
applies to any additional Premium we receive during the "free-look"
period discussed below. A return waiver is an election by you to invest
as soon as possible in the variable investment options of your choice.
If you submit a "return waiver" and then decide to return your Policy
during the "free-look" period, you may receive back less than the
Premium. Generally, we transfer the Account Value in the AST Money
Market Sub-account to the variable investment options you request as of
the Valuation Date which is on or immediately after the 15th day after
the date we issue a Policy. However, we will make the transfer as of a
later date if your "free-look" period is longer than 10 days to meet
state law requirements.
[54] How do I choose how much of this type of life insurance to buy, the
test to qualify as life insurance under, which Death Benefit Option to
use and how much Premium to pay? The Death Benefit Option, Specified
Amount, life insurance test under the Code and the program of Premium
payments that is right for your needs depends on your particular
circumstances and the reasons you are buying a Policy. You and your
financial representative should discuss your needs and financial goals
before applying for a Policy.
VARIABLE INVESTMENT OPTIONS
[55] What are the investment objectives and policies of the variable
investment options? Each variable investment option is a Sub-account of
the Separate Account. Each Sub-Account invests exclusively in one
Portfolio. You should carefully read the prospectus for any Portfolio
in which you are interested. The investment manager for American
Skandia Trust is American Skandia Investment Services, Inc. ("ASISI"),
a company affiliated with us. However, a sub-advisor, as noted below,
is engaged to conduct day-to-day investment decisions. Details about
the investment objectives, policies, risks, costs and management of the
Portfolios are found in the Portfolio prospectuses. There is no
guarantee that any Portfolio will meet its investment objective. The
following chart classifies each of the Portfolios based on our
assessment of their investment style (as of the date of this
Prospectus). The chart also provides a short description of each
Portfolio's investment objective (in italics) and a short, summary
description of their key policies to assist you in determining which
Portfolios may be of interest to you. The name of the advisor or
sub-advisor for each Portfolio appears next to the description. Those
Portfolios whose name includes the prefix "AST" are Portfolios of
American Skandia Trust.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
CAPITAL AST Money Market: seeks to maximize current income and J.P.Morgan Investment
PRESERVATION maintain high levels of liquidity. The Portfolio attempts to Management Inc.
accomplish its objective by maintaining a dollar-weighted
average maturity of not more than 90 days and by investing
in securities which have effective maturities of not more
than 397 days.
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AST PIMCO Limited Maturity Bond: seeks to maximize total
SHORT-TERM return consistent with preservation of capital and prudent Pacific Investment
BOND investment management. The Portfolio will invest in a Management Company
diversified portfolio of fixed-income securities of varying
maturities. The average portfolio duration of the Portfolio
generally will vary within a one- to- three- year time frame
based on the Sub-advisor's forecast for interest rates.
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- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST PIMCO Total Return Bond: seeks to maximize total return
LONG-TERM consistent with preservation of capital and prudent
BOND investment management. The Portfolio will invest in a Pacific Investment
diversified portfolio of fixed-income securities of varying Management Company
maturities. The average portfolio duration of the Portfolio
generally will vary within a three- to six-year time frame
based on the Sub-advisor's forecast for interest rates.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Federated High Yield: seeks high current income by
investing primarily in a diversified portfolio of fixed
HIGH YIELD income securities. The Portfolio will invest at least 65% of
BOND its assets in lower-rated corporate fixed income securities Federated Investment
("junk bonds"). These fixed income securities may include Counseling
preferred stocks, convertible securities, bonds, debentures,
notes, equipment lease certificates and equipment trust
certificates. A fund that invests primarily in lower-rated
fixed income securities will be subject to greater risk and
share price fluctuation than a typical fixed income fund,
and may be subject to an amount of risk that is comparable
to or greater than many equity funds.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST T. Rowe Price International Bond: seeks to provide high
current income and capital growth by investing in
high-quality, non dollar-denominated government and
corporate bonds outside the United States. The Portfolio
will invest at least 65% of its assets in high-quality,
INTERNATIONAL non-U.S. dollar denominated government and corporate bonds Rowe Price-Fleming
BOND outside the United States. The Sub-advisor bases its International, Inc.
investment decisions on fundamental market factors, currency
trends, and credit quality. The Portfolio generally invests
in countries where the combination of fixed-income returns
and currency exchange rates appears attractive, or, if the
currency trend is unfavorable, where the Sub-advisor
believes that the currency risk can be minimized through
hedging. The Portfolio may also invest up to 20% of its
assets in below investment-grade, high-risk bonds ("junk
bonds"), including bonds in default or those with the lowest
rating.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST T. Rowe Price Asset Allocation: seeks a high level of
total return by investing primarily in a diversified
portfolio of fixed income and equity securities. The
ASSET Portfolio normally invests approximately 60% of its total
ALLOCATION assets in equity securities and 40% in fixed income T. Rowe Price
securities. The Sub-advisor concentrates common stock Associates, Inc.
investments in larger, more established companies, but the
Portfolio may include small and medium-sized companies with
good growth prospects. The fixed income portion of the
Portfolio will be allocated among investment grade
securities, high yield or "junk" bonds, foreign high quality
debt securities and cash reserves.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- -------------------
AST American Century Strategic Balanced: seeks capital
growth and current income. The Sub-advisor intends to
maintain approximately 60% of the Portfolio's assets in
equity securities and the remainder in bonds and other fixed American Century
income securities. Both the Portfolio's equity and fixed Investment
income investments will fluctuate in value. The equity Management, Inc.
securities will fluctuate depending on the performance of
the companies that issued them, general market and economic
conditions, and investor confidence. The fixed income
investments will be affected primarily by rising or falling
interest rates and the credit quality of the issuers.
BALANCED ---------------------------------------------------------------------------------------- -----------------------
AST AIM Balanced: seeks to provide a well-diversified
portfolio of stocks and bonds that will produce both capital
growth and current income. The Portfolio attempts to meet AIM Capital
its objective by investing, normally, a minimum of 30% and a Management, Inc.
maximum of 70% of its total assets in equity securities and
a minimum of 30% and a maximum of 70% of its total assets in
non-convertible debt securities. The Sub-advisor will
primarily purchase equity securities for growth of capital
and debt securities for income purposes.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Cohen & Steers Realty: seeks to maximize total return
through investment in real estate securities. The Portfolio
pursues its investment objective by seeking, with
approximately equal emphasis, capital growth and current Cohen & Steers Capital
REAL ESTATE income. Under normal circumstances, the Portfolio will Management, Inc.
(REIT) invest substantially all of its assets in the equity
securities of real estate companies, i.e., a company that
derives at least 50% of its revenues from the ownership,
construction, financing, management or sale of real estate
or that has at least 50% of its assets in real estate. Real
estate companies may include real estate investment trusts
or REITs.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST INVESCO Equity Income: seeks high current income while
following sound investment practices. Capital growth
potential is an additional, but secondary, consideration in
EQUITY INCOME the selection of portfolio securities. The Portfolio seeks INVESCO Funds
to achieve its objective by investing in securities that Group, Inc.
will provide a relatively high yield and stable return and
that, over a period of years, may also provide capital
appreciation. The Portfolio normally will invest at least
65% of its assets in dividend-paying common stocks of
domestic and foreign issuers.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Bankers Trust Managed Index 500: seeks to outperform the
Standard & Poor's 500 Composite Stock Price Index (the "S&P
500(R)") through stock selection resulting in different Bankers Trust Company
MANAGED INDEX weightings of common stocks relative to the index. The
Portfolio will invest in the common stocks of companies
included in the S&P 500(R). The majority of the issues held
by the Portfolio will have neutral weightings to the S&P
500(R), but approximately 100 will be over- or
under-weighted relative to the index.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST American Century Income & Growth: seeks capital growth
with current income as a secondary objective. The Portfolio
invests primarily in common stocks that offer potential for
capital growth, and may, consistent with its investment American Century
objective, invest in stocks that offer potential for current Investment
income. The Sub-advisor utilizes a quantitative management Management, Inc.
technique with a goal of building an equity portfolio that
provides better returns than the S&P 500 Index without
taking on significant additional risk and while attempting
to create a dividend yield that will be greater than the S&P
500 Index.
---------------------------------------------------------------------------------------- -----------------------
GROWTH & INCOME ---------------------------------------------------------------------------------------- -----------------------
AST Lord Abbett Growth and Income: seeks long-term growth of
capital and income while attempting to avoid excessive
fluctuations in market value. The Portfolio normally will
invest in common stocks (and securities convertible into
common stocks). The Sub-advisor will take a value-oriented Lord, Abbett & Co.
approach, in that it will try to keep the Portfolio's assets
invested in securities that are selling at reasonable prices
in relation to their value. The stocks that the Portfolio
will normally invest in are those of seasoned companies that
are expected to show above-average growth and that the
Sub-advisor believes are in sound financial condition.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
AST MFS Growth with Income: seeks reasonable current income
and long-term capital growth and income. Under normal market
conditions, the Portfolio invests at least 65% of its total
assets in common stocks and related securities, such as Massachusetts
GROWTH & INCOME preferred stocks, convertible securities and depositary Financial Services
(Cont.) receipts. The stocks in which the Portfolio invests Company
generally will pay dividends. While the Portfolio may invest
in companies of any size, the Portfolio generally focuses on
companies with larger market capitalizations that the
Sub-advisor believes have sustainable growth prospects and
attractive valuations based on current and expected earnings
or cash flow. The Portfolio may invest up to 20% of its net
assets in foreign securities.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST T. Rowe Price Natural Resources: seeks long-term capital
growth primarily through the common stocks of companies that
own or develop natural resources (such as energy products,
precious metals, and forest products) and other basic T. Rowe Price
NATURAL RESOURCES commodities. The Portfolio normally invests primarily (at Associates, Inc.
least 65% of its total assets) in the common stocks of
natural resource companies whose earnings and tangible
assets could benefit from accelerating inflation. The
Portfolio looks for companies that have the ability to
expand production, to maintain superior exploration programs
and production facilities, and the potential to accumulate
new resources.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- -------------------
AST JanCap Growth: seeks growth of capital in a manner
consistent with the preservation of capital. Realization of
income is not a significant investment consideration and any
income realized on the Portfolio's investments, therefore,
will be incidental to the Portfolio's objective. The Janus Capital
Portfolio will pursue its objective by investing primarily Corporation
in common stocks of companies that the Sub-advisor believes
are experiencing favorable demand for their products and
services, and which operate in a favorable competitive and
regulatory environment. The Sub-advisor generally takes a
"bottom up" approach to choosing investments for the
Portfolio. In other words, the Sub-advisor seeks to identify
individual companies with earnings growth potential that may
not be recognized by the market at large.
---------------------------------------------------------------------------------------- -----------------------
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AST Marsico Capital Growth: seeks capital growth. Income
realization is not an investment objective and any income
LARGE CAP realized on the Portfolio's investments, therefore, will be
GROWTH incidental to the Portfolio's objective. The Portfolio will
pursue its objective by investing primarily in common stocks Marsico Capital
of larger, more established companies. In selecting Management, LLC
investments for the Portfolio, the Sub-advisor uses an
approach that combines "top down" economic analysis with
"bottom up" stock selection. The "top down" approach
identifies sectors, industries and companies that should
benefit from the trends the Sub-advisor has observed. The
Sub-advisor then looks for individual companies with
earnings growth potential that may not be recognized by the
market at large. This is called "bottom up" stock selection.
---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
AST MFS Growth: seeks long-term capital growth and future
income. Under normal market conditions, the Portfolio
invests at least 80% of its total assets in common stocks
and related securities, such as preferred stocks, Massachusetts
convertible securities and depositary receipts, of companies Financial Services
that the Sub-advisor believes offer better than average Company
prospects for long-term growth. The Sub-advisor seeks to
purchase securities of companies that it considers well-run
and poised for growth. The Portfolio may invest up to 30% of
its net assets in foreign securities.
---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
AST Oppenheimer Large-Cap Growth: seeks capital growth. The
Portfolio seeks its investment objective by emphasizing
investment in common stocks issued by established
large-capitalization "growth companies" that, in the opinion OppenheimerFunds, Inc.
of the Sub-advisor, have above average earnings prospects
but are selling at below normal prices. At least 65% of the
Portfolio's assets normally will be invested in companies
that have market capitalizations greater than $3 billion,
and the Portfolio will normally maintain a median market
capitalization greater than $5 billion.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Alger All-Cap Growth: seeks long-term capital growth.
The Portfolio invests primarily in equity securities, such
ALL-CAP GROWTH as common or preferred stocks, that are listed on U.S. Fred Alger
exchanges or in the over-the-counter market. The Portfolio Management, Inc.
may invest in the equity securities of companies of all
sizes, and may emphasize either larger or smaller companies
at a given time based on the Sub-advisor's assessment of
particular companies and market conditions.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Neuberger Berman Mid-Cap Growth: seeks capital growth.
The Portfolio primarily invests in the common stocks of
mid-cap companies, i.e., companies with equity market Neuberger Berman
capitalizations from $300 million to $10 billion at the time Management
of investment. The Portfolio is normally managed using a Incorporated
growth-oriented investment approach. The Sub-advisor looks
for fast-growing companies that are in new or rapidly
evolving industries.
---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
AST Neuberger Berman Mid-Cap Value: seeks capital growth.
The Portfolio primarily invests in the common stocks of
mid-cap companies. Under the Portfolio's value-oriented Neuberger Berman
investment approach, the Sub-advisor looks for well-managed Management
companies whose stock prices are undervalued and that may Incorporated
rise in price before other investors realize their worth.
MID-CAP GROWTH Factors that the Sub-advisor may use to identify these
companies include strong fundamentals, including a low
price-to-earnings ratio, consistent cash flow, and a sound
track record through all phases of the market cycle.
---------------------------------------------------------------------------------------- -----------------------
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INVESCO Variable Investment Funds - Dynamics: seeks
securities that will increase in value over the long term.
The Portfolio invests in a variety of securities which are
believed to present opportunities for capital growth -
primarily common stocks of companies traded on U.S.
securities exchanges, as well as over-the-counter. The INVESCO Funds
Portfolio also may invest in preferred stocks and debt Group, Inc.
instruments that are convertible into common stocks, as well
as in securities of foreign companies. In general, the
Portfolio invests in securities of companies in industries
that are growing globally and usually avoids stocks of
companies in cyclical, mature or slow-growing industries or
economic sectors. The Portfolio seeks to invest in stocks of
leading companies in attractive markets or industries, or
emerging leaders that have developed a new competitive
advantage.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Kemper Small-Cap Growth: seeks maximum growth of
investors' capital from a portfolio primarily of growth
stocks of smaller companies. At least 65% of the Portfolio's
total assets normally will be invested in the equity
securities of smaller companies, i.e., those having a market Scudder Kemper
capitalization of $1.5 billion or less at the time of Investments, Inc.
investment, many of which would be in the early stages of
their life cycle. The Portfolio seeks attractive areas for
investment that arise from factors such as technological
advances, new marketing methods, and changes in the economy
and population. Because of the Portfolio's focus on the
stocks of smaller growth companies, investment in the
Portfolio may involve substantially greater than average
share price fluctuation and investment risk.
SMALL ---------------------------------------------------------------------------------------- -----------------------
CAPITALIZATION ---------------------------------------------------------------------------------------- -----------------------
AST Lord Abbett Small Cap Value: seeks long-term capital
growth. The Portfolio will seek its objective through
investments primarily in equity securities that are believed
to be undervalued in the marketplace. The Portfolio
primarily seeks companies that are small-sized, based on the
value of their outstanding stock. Specifically, under normal Lord, Abbett & Co.
circumstances, at least 65% of the Portfolio's total assets
will be invested in common stocks issued by smaller, less
well-known companies (with market capitalizations of less
than $1 billion) selected on the basis of fundamental
investment analysis. The small capitalization companies in
which the Portfolio primarily invests may offer significant
appreciation potential. However, smaller companies may carry
more risk than larger companies.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST T. Rowe Price Small Company Value: seeks to provide
long-term capital growth by investing primarily in
small-capitalization stocks that appear to be undervalued.
The Portfolio will normally invest at least 65% of its total
assets in stocks and equity-related securities of small T. Rowe Price
companies ($1 billion or less in market capitalization). Associates, Inc.
Reflecting a value approach to investing, the Portfolio will
seek the stocks of companies whose current stock prices do
not appear to adequately reflect their underlying value as
measured by assets, earnings, cash flow or business
franchises. Investing in small companies involves greater
risk of loss than is customarily associated with more
SMALL established companies.
CAPITALIZATION ---------------------------------------------------------------------------------------- -----------------------
(Cont.) ---------------------------------------------------------------------------------------- -----------------------
Evergreen VA Special Equity: seeks capital growth. The
Portfolio strives to provide a return greater than broad
stock market indices such as the Russell 2000(R) Index by
investing principally in a diversified portfolio of common Meridian Investment
stocks of domestic companies. The Portfolio's investment Company
advisor principally chooses companies which it expects will
experience growth in earnings and price, and which have
small market capitalizations (under $1 billion) and medium
market capitalizations (between $1 billion and $5 billion).
The Portfolio may also invest in companies that have large
market capitalizations (over $5 billion).
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST AIM International Equity: seeks capital growth. The
Portfolio seeks to meet its objective by investing,
normally, at least 70% of its assets in marketable equity
securities of foreign companies that are listed on a AIM Capital
recognized foreign securities exchange or traded in a Management, Inc.
foreign over-the-counter market. The Portfolio will normally
invest in a diversified portfolio that includes companies
from at least four countries outside the United States,
emphasizing counties of Western Europe and the Pacific
Basin.
---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
AST American Century International Growth: seeks capital
growth. The Portfolio will seek to achieve its investment
objective by investing primarily in equity securities of
international companies that the Sub-advisor believes will
increase in value over time. Under normal conditions, the American Century
Portfolio will invest at least 65% of its assets in equity Investment
securities of issuers from at least three countries outside Management, Inc.
of the United States. The Sub-advisor uses a growth
investment strategy it developed that looks for companies
with earnings and revenue growth. The Sub-advisor will
consider a number of other factors in making investment
selections, including the prospects for relative economic
growth among countries or regions, economic and political
INTERNATIONAL conditions, expected inflation rates, currency exchange
EQUITY fluctuations and tax considerations.
---------------------------------------------------------------------------------------- -----------------------
AST Founders Passport: seeks capital growth. The Portfolio
normally invests primarily in securities issued by foreign
companies that have market capitalizations or annual
revenues of $1 billion or less. These securities may
represent companies in both established and emerging Founders Asset
economies throughout the world. At least 65% of the Management LLC
Portfolio's total assets normally will be invested in
foreign securities representing a minimum of three
countries. Foreign securities are generally considered to
involve more risk than those of U.S. companies, and
securities of smaller companies are generally considered to
be riskier than those of larger companies.
---------------------------------------------------------------------------------------- -----------------------
AST MFS Global Equity: seeks capital growth. Under normal
market conditions, the Portfolio invests at least 65% of its
total assets in common stocks and related securities, such
as preferred stock, convertible securities and depositary Massachusetts
receipts, of U.S. and foreign issuers (including issuers in Financial Services
developing countries). The Portfolio generally seeks to Company
purchase securities of companies with relatively large
market capitalizations relative to the market in which they
are traded.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST T. Rowe Price International Equity: seeks total return
from long-term growth of capital and income, principally
through investments in common stocks of established,
non-U.S. companies. Investments may be made solely for Rowe Price-Fleming
capital appreciation or solely for income or any combination International, Inc.
of both for the purpose of achieving a higher overall
return. The Sub-advisor expects to invest substantially all
of the Portfolio's assets (with a minimum of 65%) in
established foreign companies. Geographic diversification
will be wide, including both developed and developing
countries, and there will normally be at least three
INTERNATIONAL different countries represented in the Portfolio.
EQUITY ---------------------------------------------------------------------------------------- -----------------------
(Cont.) ---------------------------------------------------------------------------------------- -----------------------
Evergreen VA Global Leaders: seeks to provide investors with
long-term capital growth. The Portfolio normally invests as
least 65% of its assets in a diversified portfolio of U.S.
and non-U.S. equity securities of companies located in the Evergreen Asset
world's major industrialized countries. The Portfolio will Management Corp.
invest in no less than three countries, which may include
the U.S., but may invest more than 25% of its total assets
in one country. The Portfolio invests only in the best 100
companies, which are selected by the investment advisor
based on qualitative and quantitative criteria such as high
return on equity, consistent earnings growth and established
market presence.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
Montgomery Variable Series - Emerging Markets: seeks capital
appreciation, which under normal conditions it seeks by
EMERGING investing at least 65% of its total assets in equity Montgomery Asset
MARKETS securities of companies in countries having emerging Management, L.P.
markets. Under normal conditions, investments are maintained
in at least six emerging market countries at all times and
no more than 35% of total assets are invested in any one
emerging market country.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Sector funds generally diversify their investments across particular economic
sectors. However, because those investments are limited to a comparatively
narrow segment of the economy, sector funds are generally not as diversified as INVESCO Funds
most mutual funds. Sector funds tend to be more volatile than other types of Group, Inc.
funds. The value of fund shares may go up and down more rapidly than other
funds. Each sector of the economy may also have different regulatory or other
risk factors that can cause greater fluctuations in the share price. Please read
the prospectus for the underlying sector fund for further details about the
risks of the particular sector of the economy.
- ------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Financial Services:
seeks capital appreciation. The Portfolio normally invests
at least 80% of its assets in the equity securities of
companies involved in the financial services sector. This
sector includes, among others, banks (regional and INVESCO Funds
money-centers), insurance companies (life, property and Group, Inc.
casualty, and multiline), and investment and miscellaneous
industries (asset managers, brokerage firms, and
government-sponsored agencies). The investment advisor seeks
companies which it believes can grow their revenues and
earnings regardless of the interest rate environment -
although securities prices of financial services companies
generally are interest rate-sensitive.
---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Health Sciences: seeks
capital appreciation. The Portfolio invests at least 80% of
its assets in the equity securities of companies that
develop, produce or distribute products or services related INVESCO Funds
to health care. These industries include, but are not Group, Inc.
limited to, medical equipment or supplies, pharmaceuticals,
health care facilities, and applied research and development
of new products or services. The investment advisor attempts
to blend well-established healthcare firms with
faster-growing, more dynamic health care companies, which
have new products or are increasing their market share of
existing products.
---------------------------------------------------------------------------------------- -----------------------
SECTOR ---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Technology: seeks
capital appreciation. The Portfolio normally invests at
least 80% of its assets in the equity securities of
companies engaged in technology-related industries. These INVESCO Funds
include, but are not limited to, communications, computers, Group, Inc.
video, electronics, oceanography, office and factory
automation, and robotics. A core portion of the Portfolio's
holdings are invested in market-leading technology companies
which the investment advisor believes will maintain or
improve their market share regardless of overall conditions.
---------------------------------------------------------------------------------------- -----------------------
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Telecommunications:
seeks capital appreciation. The Portfolio normally invests
at least 80% of its assets in the equity securities of
companies that are primarily engaged in the design,
development, manufacture, distribution, or sale of
communications services and equipment, and companies that
are involved in developing, constructing, or operating INVESCO Funds
communications infrastructure projects throughout the world, Group, Inc.
or in supplying equipment or services to such companies. The
telecommunications sector includes companies that offer
telephone services, wireless communications, satellite
communications, television and movie programming and
broadcasting. Normally, the Portfolio will invest at least
65% of its assets in companies located in at least three
different countries, although U.S. issuers will often
dominate the holdings.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," and
"500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed
for use by American Skandia Investment Services, Incorporated and Bankers Trust.
The Portfolio is not sponsored, endorsed, sold or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability of
investing in the Portfolio.
ADDITIONAL PREMIUMS
[56] When may I contribute additional Premiums and how much may I pay? You
may send us additional Premiums at any time before the Insured's Age
100 and while the Insured is alive unless the amount you have paid
to-date equals the then current maximum we permit. The amount of
additional Premiums you may make may be limited by the test you elect
for your Policy to qualify as life insurance. The amount you may pay is
flexible within the limits discussed below.
[57] When do you allocate additional Premiums? We allocate Net Premium
resulting from an additional Premium payment to the investment options
as of the Valuation Period we receive that Premium at our Office.
[58] How do you allocate additional Premiums among the investment options?
We allocate Net Premiums resulting from additional Premium payments
according to your most recent instructions to us. If you are
participating in any allocation programs we agree to support, such as
any program of periodic rebalancing of your Account Value among various
investment options, we will allocate additional Premiums in accordance
with such a program unless we receive alternate instructions.
[59] What is the most I may pay in total while I own a Policy? The maximum
you may pay changes. At any particular time, it is the amount which, at
that time, would not cause the Death Benefit to increase by more than
the amount of the Premium. We reserve the right to require new evidence
satisfactory to us that the Insured meets our underwriting standards
before we agree to accept such Premium. The amount of additional
Premiums you may make may be limited by the test you elect for your
Policy to qualify as life insurance.
[60] What is the least amount I may pay at any one time? Unless you must
make a payment to keep the Policy in force, as discussed below, the
minimum amount we accept as an additional Premium depends on whether
you have arranged to make periodic withdrawals from a bank or other
financial institution ($100), or whether you make additional Premium
payments directly ($500).
[61] Will you accept an additional Premium if it causes my Policy to be
treated as a MEC? We will not apply the portion of any Premium that we
believe would require us to treat your Policy as a MEC if it was not
previously a MEC. However, if you provide us with a notice In Writing
that you understand that the additional Premium will require us to
treat your Policy as a MEC, we will accept the Premium. If you do not
give us such notice, we will return the difference between the amount
you submitted and any amount we apply as a Premium.
KEEPING THE POLICY IN FORCE
[62] What is the least amount I must pay to keep the Policy in force? We
cannot know in advance any minimum amount that will be required to keep
the Policy from ending without value. This is because: (1) the charges
we deduct each month are based on your Account Value, which may
increase or decrease due to the performance of the investment options;
(2) we retain the right to decrease or increase the current cost of
insurance rates, subject to the guaranteed maximums in the Policy; and
(3) you may request and we may agree to a change in the Death Benefit
Option and/or the Specified Amount. If, on any Monthly Processing Day,
your Cash Value is insufficient to pay the current deductions, a 61-day
"grace period" begins. If you enter the grace period, we will send you
a notice of how much you have to pay before the end of the grace period
to keep the Policy in force. You may also qualify for the guaranteed
continuation provision, discussed below.
[63] Can the Policy end because of poor investment performance? The Policy
could enter the grace period because of poor investment performance
combined with the deduction of the Policy's fees and charges. If that
were to occur and, by the end of the grace period, there was not enough
Cash Value to deduct the unpaid charges, the Policy would end, unless
you qualify for the guaranteed continuation provision.
[64] What is the guaranteed continuation provision? During the first ten
Policy Years or until the Insured reaches Age 80, whichever is earlier,
you may qualify for a guaranteed continuation provision if the
cumulative amount of Premium you have paid, less any withdrawals and
any Debt, is not less than a specified minimum for each Policy Month
times the number of Policy Months since the Policy Date. We call the
specified minimum for each Policy Month the "monthly continuation
amount". Your Policy must meet this cumulative Premium test each Policy
Month to qualify under this provision. If you qualify for continuation
under this provision, we guarantee that your Policy will not enter into
a grace period until the earlier of the 10th Policy Anniversary or the
Insured's Age 80. However, the Death Benefit in effect during the
period that the guaranteed continuation provision applies will be fixed
as shown in the Policy. NOTE: Where allowed by law, Policies issued to
an Insured(s) in a substandard risk class may not be eligible for the
guaranteed continuation provision.
For example, if the monthly continuation amount is $500 and your Policy
was in its 20th Policy Month, the sum of the monthly continuation
amounts would be $10,000. Therefore, for purposes of this example, the
guaranteed continuation provision would apply in the 20th Policy Month
if you had paid at least $10,000 to that point, and would apply in the
21st Policy Month if you had paid at least $10,500 up to the 21st
Policy Month, assuming there is no Debt. We adjust the monthly
continuation amount going forward after any increase or decrease to the
Specified Amount in the first 10 Policy Years.
TRANSFERS AND ALLOCATION SERVICES
[65] May I transfer Account Value between investment options? You may
transfer Account Value between investment options, but there are
limits, as well as potential charges, which are discussed above in the
question "How much is the transfer fee, and when must I pay it?" We
permit the agent of record to make transfers on your behalf unless you
give us other instructions.
[66] Are there any limits on transfers? No transfers are permitted when the
Policy is in its "grace period." In order to maintain Account Value in
an investment option after transferring a portion of your Account Value
out of that investment option, we reserve the right to require that
there be at least $500.00 in such investment option after the transfer.
If, as a result of the transfer, there would be less than $500.00 in an
investment option, we reserve the right to transfer the remaining
Account Value pro rata to the investment option(s) that you were
transferring to. We retain the right to impose a limit of not more than
12 transfers per Policy Year, including transfers involving Fixed
Allocations. Unless such a limit is in effect, there is no limit on the
number of transfers that only involve variable investment options, or
the number of transfers from variable investment options to make Fixed
Allocations. However, we do limit each transfer from Fixed Allocations
that are to be effective on any day other than a Policy Anniversary to
the greater of 25% of the Account Value in your Fixed Allocations or
$1,000. If you make such a transfer from your Fixed Allocations, you
cannot make another such transfer until either 90 days has passed or
the next Policy Anniversary occurs. We also retain the right to refuse
or limit transfers, either for one Owner or a group of Owners, if we
believe there may be adverse consequences for other Owners.
[67] What are 'allocation services'? Allocation services are programs that
automatically transfer Account Value between investment options. We may
waive or reduce the minimum amounts required for transfers noted above
when your Policy is participating in certain allocation programs,
including, but not limited to, static rebalancing programs. However,
any limitations on transfers from Fixed Allocations also apply if any
allocation services are being utilized.
[68] What allocation services does American Skandia provide? We support
dollar cost averaging and static rebalancing. Dollar cost averaging
allows you to systematically transfer an amount periodically from one
investment option to one or more other investment options. With static
rebalancing, you choose allocation percentages for the Sub-accounts
into which you allocate Account Value. However, over time the
performance of the variable investment options will differ, causing
your percentage allocations to shift. Periodically, we will "rebalance"
your allocations by transferring the appropriate amount from the
"overweighted" Sub-accounts to the "underweighted" Sub-accounts to
return your allocations to the percentages you request.
LOANS
[69] When can I take a loan? We offer loans using Account Value as
collateral. Where permitted by law, we reserve the right to limit the
number of loans in each Policy Year. The Insured must be alive when you
take a loan (if there are two Insureds, at least one must be alive when
a loan is taken). Subject to our rules, on the Policy Date we will
establish a loan equal to the outstanding indebtedness on previous life
insurance exchanged for a Policy.
[70] Is this type of loan tax-free? We do not treat loans as a distribution
and therefore do not report any taxable income unless we believe your
Policy should be treated as a MEC. The actual treatment of the loan
will depend on your particular circumstances.
[71] How much is available for a loan? The maximum amount available as a
loan is equal to 90% of your current Cash Value. The minimum amount you
may borrow is $1,000.
[72] What happens to the Account Value if I take a loan? When you take a
loan, we transfer Account Value equal to the amount of the loan into
the Loan Account. Account Value in the Loan Account is maintained in
our general account. Unless you give us different instructions, we move
Account Value from the variable investment options and the Fixed
Allocations in the same proportion as your Account Value in the
investment options on the Valuation Date we move such Account Value.
The impact of a loan on your Account Value may be positive or negative.
At the time a loan is taken, there is no impact. However, if the
interest rate credited to Account Value in the Loan Account is greater
than what would be earned in the investment options, the loan will have
a positive impact on your Account Value. If the interest rate credited
to Account Value in the Loan Account is less than what would be earned
in the investment options, the loan will have a negative impact on your
Account Value. Because a loan can impact the Account Value, it may also
have an impact on the Minimum Required Death Benefit and, possibly, the
Death Benefit.
[73] What are "preferred loans" and "standard loans"? We determine what
portion of a loan is a "preferred loan" and what portion is a "standard
loan" at the time you take the loan. Whether a loan is "preferred" or
"standard" depends on the amount of the loan relative to your Policy's
Cash Value. Loans of 25% or less of the Policy's Cash Value are treated
as "preferred" loans. Loans of greater then 25% of the Policy's Cash
Value are treated as "standard" loans. We determine whether your loan
should be treated as "preferred" or "standard" at the time it is made
based on the cumulative amount of outstanding loans at that time. A
loan retains its character as "preferred" or "standard" until it is
repaid.
[74] What is the interest rate charged on loans? We charge interest on
"preferred" and "standard" loans at the rate of 6.0% per year,
compounded yearly, in arrears. Each Policy Anniversary that the loan is
not repaid, we add an amount equal to any unpaid interest to your Debt.
[75] Does Account Value in the Loan Account earn interest? We currently
credit interest to Account Value in the Loan Account on "preferred"
loans at the rate of 6.0% per year, compounded yearly. We currently
credit interest to Account Value in the Loan Account on "standard"
loans at the rate of 5.85% per year, compounded yearly. However, with
respect to "preferred" and "standard" loans, to the extent permitted by
law, we retain the right to credit less, but never less than 5.5% per
year, compounded yearly.
[76] Once a loan is taken, does American Skandia ever require more
'collateral' in the Loan Account? Yes. The Loan Account acts as
collateral for any loans from us. We monitor the Debt and the Account
Value in the Loan Account to assure that they are equal to each other.
Therefore, on each Policy Anniversary we equalize the Debt and the
Account Value in the Loan Account. If the Debt is larger due to
outstanding loan interest, we transfer Account Value equal to the
difference pro-rata from the investment options and add it to the Loan
Account.
We also match up the Debt and the Loan Account when you repay any
portion of the Debt. If the Account Value in the Loan Account then
exceeds the Debt, we transfer the excess pro-rata to the investment
options which you are utilizing at that time. Any amount then allocated
to the fixed option will be treated as a separate Fixed Allocation.
[77] Do I have to repay the loan? What happens at the Insured's death if I
have not repaid the loan? You are not required to repay the loan while
the Insured is alive. If there is any outstanding Debt when Death
Proceeds are due, we subtract the Debt from the Death Benefit as part
of the calculation of the Death Proceeds.
[78] What happens if I repay any portion of the loan? The amount of Debt is
reduced by the amount of any loan repayment. Loan repayments are used
to repay "standard" loans first and "preferred" loans only after all
outstanding "standard" loans have been repaid. Loan repayments reduce
the amount of principal and loan interest proportionately based on the
ratio between principal and loan interest as of the Valuation Date the
loan repayment is applied. We allocate any loan repayment to the
variable investment and fixed options pro-rata based on the Account
Value in each investment option as of the Valuation Period we receive
your loan repayment. Any amount then allocated to the fixed option will
be treated as a separate Fixed Allocation.
[79] May I borrow from the Policy to make Premium payments? We will not
accept instructions to borrow from your Policy and use the loan to make
Premium payments.
[80] If I have an outstanding loan and send in money, do you use it to repay
the loan or do you consider it a Premium payment? We treat such funds
as Premium or loan repayment in accordance with your instructions, to
the extent such instructions comply with limitations such as the then
applicable maximum Premium for the Policy. If you send us funds and do
not specify whether the money is to be used as a Premium or to repay a
loan, we treat the money as a Premium payment to the extent such amount
does not exceed the maximum Premium then allowed. We will return to you
any amount that exceeds the maximum Premium then allowed.
PARTIAL WITHDRAWALS
[81] When can I make a partial withdrawal? We allow partial withdrawals
while the Insured is alive up to a maximum of 90% of the Cash Value,
subject to the following limitations:
|X| In the first ten Policy Years, we permit a partial withdrawal if such
a withdrawal meets the requirements for a medically-related waiver, as
described in the section "Medically Related Waiver".
|X| After the tenth Policy Year, you may take up to the maximum partial
withdrawal amount as discussed below.
|X| At any time, you may withdraw amounts that cumulatively do not exceed
the total of any Exempt Premiums less the Exempt Premiums previously
withdrawn.
|X| You may not make a partial withdrawal of less than $1,000 and the Cash
Value subsequent to a partial withdrawal must be at least $1,000.
[82] What happens to the Account Value if I take a partial withdrawal? When
you take a partial withdrawal, we reduce your Account Value by an
amount equal to the amount of the partial withdrawal. Unless you give
us different instructions, we take Account Value from the variable
investment options and the Fixed Allocations in the same proportion as
your Account Value in the investment options on the Valuation Date we
take such Account Value. If you have multiple Fixed Allocations,
amounts are taken on a "last in, first out" basis. Any Account Value in
the Loan Account is not available for a partial withdrawal.
[83] Is there a charge for a partial withdrawal? We charge a $25.00
transaction fee on any partial withdrawal.
[84] Does a partial withdrawal affect the Death Benefit? A partial
withdrawal will have an immediate impact on the Death Benefit. A
partial withdrawal always reduces the Minimum Required Death Benefit,
because the Minimum Required Death Benefit is based on the Account
Value. A partial withdrawal also results in a reduction to the
Guaranteed Minimum Death Benefit. If you are using Death Benefit Option
I, III or IV, the Basic Death Benefit is reduced by the lesser of: (1)
the amount of the partial withdrawal, including the amount of the
transaction fee; or (2) the extent required such that, immediately
after such reduction, the Specified Amount equals the higher of the
recalculated Minimum Required Death Benefit and the recalculated
Guaranteed Minimum Death Benefit. If you are using Death Benefit Option
II, the Specified Amount is not reduced by a partial withdrawal.
If a partial withdrawal occurs on or after Age 100, it reduces the
Death Benefit by the exact amount of the partial withdrawal plus the
partial withdrawal transaction fee, because on or after that Age the
Death Benefit equals the Account Value.
SURRENDERS
[85] When can I surrender my Policy? You can surrender your Policy after the
end of the free-look period as long as the Insured is alive.
[86] What is paid out when a Policy is surrendered? If you surrender the
Policy, we will pay you the Cash Value.
ACCELERATED DEATH BENEFIT
[87] What is an accelerated death benefit? An accelerated death benefit is
pre-payment to the Owner of a portion of the Death Proceeds. The
maximum we will pay, before any reductions, is the lesser of 50% of the
Death Benefit or $250,000. The actual amount is reduced by a 12-month
interest rate discount (currently 6.0%) and a pro-rata portion of any
Debt, based on the ratio by which the Death Benefit is reduced as a
result of the payment of the accelerated death benefit. We reserve the
right to change the interest rate discount percentage.
[88] When will American Skandia make such a payment? We will make such a
payment one time, where allowed by law, based on the Owner's request.
The Insured may not request such a payment unless the Insured is also
the Owner. We only make the payment if we receive all our requirements.
Our requirements include, but are not limited to, proof satisfactory to
us In Writing that the Insured (the last surviving Insured if there are
two Insureds) became terminally ill, as defined in your Policy: (a) at
least 30 days after the Issue Date; or (b) as a result of an accident
that occurred after the Issue Date. To the extent permitted by law, we
will change our procedures in relation to this benefit or the
definition of terminally ill or any other applicable term in order to
maintain the tax-free status of any amounts paid out under this
provision.
[89] What happens to the remaining benefits if American Skandia makes such a
payment? If we make such a payment, we first reduce the Policy's
benefits and any Debt proportionately. For example, if the Death
Benefit before such a payment is $200,000 and we make an accelerated
Death Benefit payment of $50,000, we reduce the Death Benefit by the
ratio of the payment to the then current Death Benefit, which in this
case is by 25%, to $150,000. We also reduce the Maximum Annual
Assessable Premium. You should consult a tax advisor on the tax
consequences of such a payment. Please refer to Appendix G for a
hypothetical illustration of the accelerated death benefit provision.
MEDICALLY-RELATED WAIVER
[90] What is a medically-related waiver? A medically-related waiver is a
waiver of the contingent deferred sales charge that would otherwise
apply to a surrender. A medically-related waiver also is the only
context in which we permit a partial withdrawal in the first ten Policy
Years of amounts other than Exempt Premium. No contingent deferred
sales charge or partial withdrawal transaction fee applies to such a
partial withdrawal. A medically-related waiver is available by rider to
the Policy and is currently at no charge to you.
[91] When would American Skandia waive the contingent deferred sales charge?
We will waive the contingent deferred sales charge, where allowed by
law, if you provide us with all of our requirements. Our requirements
include, but are not limited to, proof satisfactory to us In Writing
that the Insured (the last surviving Insured if there is more than one
Insured) has continuously been confined to a long term care facility,
such as a nursing home or a hospital, as defined in the rider, for at
least a specified amount of time, and that such confinement started
after the Issue Date.
[92] Are there any restrictions on medically-related waivers? We will only
consider providing this benefit on amounts up to $500,000. The $500,000
maximum will apply regardless of when taken, on any life insurance
policy or annuity contract issued by American Skandia where the Insured
under this Policy is named as the Insured, Owner or Annuitant under the
other policy or contract. However, once we have approved a
medically-related waiver, should you choose to only take a partial
withdrawal, the waiver will apply to any subsequent withdrawals or
surrender, subject to the $500,000 cumulative limit. NOTE: Where
allowed by law, Policies issued to an Insured(s) in a substandard risk
class may not be eligible for a medically-related waiver.
[93] What happens to the remaining benefits if American Skandia makes such a
payment in connection with a partial withdrawal? A partial withdrawal
during the first ten Policy Years for which we grant a
medically-related waiver has the same impact on the remaining benefits
that results from any other partial withdrawal. You should consult a
tax advisor on the tax consequences of such a payment.
RISKS
[94] What are the risks, and who takes the risks? We bear the risk that, for
all the Policies we issue, when considered together, our expenses
exceed our charges, including the expense of providing the difference
at death between the Account Value and the Death Benefit. We also bear
the investment and reinvestment risk in providing interest crediting
guarantees to Fixed Allocations and to the Loan Account, as well as for
any settlement options that assume a fixed rate of return. We also bear
the risk of having to waive monthly charges we would otherwise deduct
under the guaranteed continuation provision. You bear the investment
risk when allocating Account Value to any variable investment option,
since that will affect the amount available for any loans, partial
withdrawals or surrender. You bear a liquidity risk because you may not
make partial withdrawals except under limited circumstances and in
limited amounts during the first ten (10) Policy Years, although
amounts are available as loans. Any irrevocable beneficiary bears the
risk as to the Death Proceeds, which may be affected by investment
performance of the investment options, the age at which the Insured
dies (if at such time the amount paid is based on the Minimum Required
Death Benefit), any loan or withdrawal activity by the Owner prior to
the Insured's death or payment of an accelerated death benefit.
OTHER RIGHTS
[95] Do I have any other rights if I buy a Policy? There are certain other
ownership rights you may exercise under a Policy. You may name one or
more Beneficiaries. You may make that designation "irrevocable," which
means it cannot be changed. If you do not designate the Beneficiary as
irrevocable, you retain the right to change the Beneficiary before the
Insured dies. However, all Beneficiary designations are subject to our
acceptance, to the extent permitted by law. You also may transfer,
pledge or assign your Policy, which may trigger a currently taxable
event. You should only transfer, pledge or assign your Policy after
consulting with a competent tax advisor. You may exercise voting rights
in relation to the applicable Portfolios. Some of these rights may be
limited depending on the usage of your Policy, especially if we permit
it to be held in connection with certain retirement plans designed to
be "qualified" plans under the Code.
THE INSURANCE COMPANY
[96] Who is American Skandia? American Skandia Life Assurance Corporation is
organized as a stock insurance company domiciled in Connecticut. The
predecessor company of American Skandia was originally incorporated on
May 21, 1969. We are licensed as a life insurer in all 50 states and
the District of Columbia. We are a wholly owned subsidiary of American
Skandia, Inc. (formerly American Skandia Investment Holding
Corporation), whose indirect parent is Skandia Insurance Company Ltd.
Skandia Insurance Company Ltd. is part of a group of companies whose
predecessor began operations in 1855. Two of our affiliates, American
Skandia Marketing, Incorporated, and American Skandia Information
Services and Technology Corporation, may provide certain administrative
functions for us. We may also engage various independent firms to
provide various administrative functions for us. Another affiliate,
American Skandia Investment Services, Incorporated, currently acts as
the investment manager to American Skandia Trust, one of the underlying
mutual funds whose Portfolios are available as variable investment
options. We currently engage Skandia Investment Management, Inc., an
affiliate whose indirect parent is Skandia Insurance Company Ltd., as
investment manager for our general account. We are under no obligation
to engage or continue to engage any investment manager.
THE SEPARATE ACCOUNT
[97] What supports American Skandia's obligation to me if I buy a Policy?
The benefits provided by the Policy are our obligations. The assets
supporting our obligations equaling the Account Value allocated to the
variable investment options are held in our Separate Account F. We
maintain assets in our general account to support our obligations: (1)
equal to the Account Value allocated to the fixed option; (2) equal to
the Account Value in the Loan Account; (3) for any settlement option;
and (4) for any other obligation we may have in relation to a Policy.
The Separate Account was established under the laws of Connecticut.
Assets in the Separate Account may support obligations created in
relation to the Policies described in this Prospectus or other policies
we offer. We are the legal owner of the assets in the Separate Account.
Income, gains and losses, whether or not realized, are credited or
charged to the Separate Account according to the terms of the Policies
and any other policies supported by the assets in the Separate Account
without regard to our other income, gains or losses or to the income,
gains or losses in any other of our separate accounts. We will maintain
assets in the Separate Account with a total market value at least equal
to the reserves and other liabilities we must maintain in relation to
the life insurance policies supported by such assets. These assets may
only be charged with liabilities that arise from such life insurance
policies.
Separate Account F is registered with the U.S. Securities and Exchange
Commission (the "SEC") under the Investment Company Act of 1940 as a
unit investment trust, which is a type of investment company. This does
not involve any supervision by the SEC of the investment policies,
management or practices of the Separate Account or of us. The Separate
Account meets the definition of "separate account" under the federal
securities law.
The only Sub-accounts available to you are those offered in this
Prospectus. These Sub-accounts are available as investment options for
other policies we offer. Sub-accounts are permitted to invest in
Portfolios we consider suitable. The Portfolios in which the
Sub-accounts invest are available to Sub-accounts of other separate
accounts, including separate accounts we use in relation to a number of
variable annuities. Separate accounts of other insurers and of various
qualified retirement plans may also invest in the Portfolios.
TAXES
[98] What are the taxes connected to the Policy? Federal and state tax laws,
as well as the interpretations of those laws, change. In addition, we
do not know your particular circumstances, which is one of a number of
reasons we cannot give you tax advice. You should consult a
professional tax advisor for tax advice for your particular situation.
You should also be sure to read the "Additional Tax Considerations"
section appearing later in this Prospectus, which includes, but is not
limited to, information regarding estate taxes. What we do provide are
some brief summary answers to the following questions about Federal
income taxes.
[99] Will my Beneficiary pay taxes on the Death Proceeds? Under most
circumstances, the Beneficiary does not pay any income tax on the Death
Proceeds.
[100] Is gain in the Policy taxed every year? Generally, any gain in the
Policy is not taxed currently. However, the treatment of gain when a
MEC is assigned is discussed below.
[101] How are amounts that I receive before the Insured's death taxed? If
your Policy is not being treated as a MEC, amounts you receive as a
partial withdrawal or if you surrender the Policy are deemed for income
tax purposes to come first from your basis in the Policy. That means
you may withdraw your basis before you are considered to have withdrawn
any gain. Any gain withdrawn is taxed as ordinary income. Under most
circumstances, taking a loan does not result in any income tax
consequences.
[102] Under what circumstances might the Policy or any amounts taken out be
treated differently for income tax purposes? The tax treatment of any
life insurance policy and any distribution while the Insured is alive
will be different if the policy is deemed: (1) not to qualify as life
insurance under the Code; or (2) to be a MEC. The Code defines life
insurance in such a way as to limit the amount of money that can be put
into a life insurance policy and receive the tax preferences provided
for life insurance. We expect to administer the Policies such that the
death benefits will always receive the treatment accorded life
insurance death benefits under the Code. However, the Code has a
second, more restrictive limit as to how much money may be contributed
if the taxpayer is to receive all the tax benefits for life insurance
policies under the Code, such as tax-free loans and
"first-in/first-out" treatment of distributions. If the amount
contributed violates this second, more restrictive limit, the Policy
will be treated as a MEC and will not receive many of the tax
preferences of life insurance policies. This second limit, sometimes
known as the "7-pay test", is defined as paying more during the first
seven years of a policy than the amount that would be paid if the
policy provided for paid up benefits after seven level annual premiums.
Any changes to a Policy which is considered, for tax purposes, to be a
"material" change, including, but not limited to, a change in the
Specified Amount, require us to test the Policy again for compliance
with the 7-pay test based on the changes to the Policy.
[103] How is a "MEC" treated differently from other life insurance policies?
Some of the key ways in which a MEC is treated differently from other
life insurance policies are: (a) amounts you receive as a partial
withdrawal, loan, or if you surrender the Policy are deemed for income
tax purposes to come first from any gain in the tax year received
("last in/first out" treatment); (b) distributions of gain before the
taxpayer's age 59 1/2 are subject to a 10% penalty unless an exception
applies; and (c) assignments or pledges as collateral for a loan are
deemed a distribution. Gain subsequent to an assignment or pledge may
be treated as if it is distributed each year. However, death benefits
paid from a MEC are treated the same as from other life insurance
policies.
AVAILABLE INFORMATION
[104] How can I find out more about this offer? You first should review the
rest of this Prospectus for additional information. This Prospectus is
part of the registration statement we filed with the Securities and
Exchange Commission regarding this offering. Additional information on
American Skandia and this offering is available in that registration
statement and accompanying exhibits. You may obtain copies of these
materials at the prescribed rates from the SEC's Public Reference
Section, 450 Fifth Street N.W., Washington, D.C., 20549. You may
inspect and copy the registration statement and the accompanying
exhibits at the SEC's public reference facilities at the above address,
Room 1024, and at the SEC's Regional Offices, 7 World Trade Center, New
York, NY, and the Everett McKinley Dirksen Building, 219 South Dearborn
Street, Chicago, IL. These documents, as well as documents incorporated
by reference, may also be obtained through the SEC's Internet Website
(http://www.sec.gov) for this registration statement as well as for
other registrants that file electronically with the SEC.
MISCELLANEOUS PROVISIONS AND ADDITIONAL DETAILS
The following sections provide additional information you should consider before
purchasing a Policy.
PROVIDING SERVICES TO YOU
You can reach us by telephone at 1-888-554-3348 or through our Internet Website
at http://www.americanskandia.com. We may require that you provide us with
proper identification before we release information about your Policy or accept
instructions received over the phone, the Internet or via any other electronic
means. We may require that you provide your Social Security or tax
identification number. We also may require you to present the personal
identification number ("PIN") we provide you after we issue a Policy. To the
extent permitted by law or regulation, neither we nor any person authorized by
us will be responsible for any claim, loss, liability or expense in connection
with a transaction, including but not limited to a transfer between investment
options, over the phone, the Internet or via any other electronic means.
However, this will only be the case if we or such authorized person acted: (a)
in good faith reliance that you authorized the transaction; and (b) on
reasonable procedures to identify you or your designee though a number of
verification methods. These methods may include recording phone conversations,
requesting Social Security or tax identification numbers, PINs, confirming
electronic mail addresses, or similar means. We may be liable for losses due to
unauthorized or fraudulent instructions should we not follow such reasonable
procedures.
We may require that you submit forms In Writing for certain transactions. We
require the written consent of all joint Owners for any transaction for which we
require the Owner's written consent.
DESIGNATIONS
Certain designations apply to a Policy - the Owner, the Insured and the
Beneficiary. All designations are subject to our rules and our acceptance. We
assume all designations, other than the Insured, are revocable unless you tell
us otherwise. You should consult with a competent tax advisor on the income tax,
estate and inheritance tax implications of various designations. You should also
consult with a competent legal advisor as to the implications of certain
designations in relation to an estate, bankruptcy and community property, where
applicable, as well as other matters.
We assume the Insured(s) is/are the Owner(s) unless you tell us otherwise. If
you name more than one Owner, all rights reserved to Owners are then held as
joint tenants with rights of survivorship unless you provide alternative
instructions. Naming someone to be the Owner other than the payor of the Premium
may have gift, estate or other tax implications.
We assume the Beneficiary is you or your estate unless you tell us otherwise.
You may name more than one primary and more than one contingent Beneficiary.
NET INVESTMENT FACTOR
For each Sub-account the initial Unit Price was $10.00. The Unit Price for each
subsequent Valuation Period is the net investment factor for that Valuation
Period, multiplied by the Unit Price for the immediately preceding Valuation
Period. The net investment factor is (1) divided by (2), less (3), where:
(1) is the net result of:
(a) the net asset value per share of the underlying Portfolio at the end
of the current Valuation Period plus the per share amount of any
dividend or capital gain distribution declared and unpaid (accrued) by
the Portfolio; plus or minus
(b) any per share charge or credit during the Valuation Period as a
provision for taxes attributable to the operation or maintenance of
that Sub-account.
(2) is the net result of:
(a) the net asset value per share of the underlying Portfolio at the end
of the preceding Valuation Period plus the per share amount of any
dividend or capital gain distribution declared and unpaid (accrued) by
the Portfolio; plus or minus
(b) any per share charge or credit during the preceding Valuation Period
as a provision for taxes attributable to the operation or maintenance
of the Sub-account.
(3) is the mortality and expense risk charges and the administration charge.
ALLOCATION PROGRAMS
We may provide administrative support for various programs that automatically
transfer Account Value between certain investment options at scheduled times.
These include dollar cost averaging and static rebalancing (periodic rebalancing
of Account Values between investment options to conform to preset percentages).
However, we only offer to support such allocation programs according to our
rules. While we are offering to support these programs as of the date of this
Prospectus, we do not guarantee to support these programs at all times.
We may also provide administrative support for various allocation programs that
may be made available by your financial professional. These may include various
asset allocation and market timing programs. We only offer to support such
programs according to our rules. These rules may include, but are not limited
to, receipt of your authorization In Writing permitting a financial professional
to make transfers between investment options on your behalf, or to enroll your
Policy in one of the allocation programs for which we provide administrative
support. We permit the agent of record to make transfers on your behalf unless
you give us other instructions.
Any financial professional you authorize may or may not be appointed by us as
our agent for the sale of Policies. However, we do not engage any agent of
record or any third parties to offer investment allocation services of any type,
so that persons or firms offering such services do so independent from any
agency relationship they may have with us for the sale of Policies. We therefore
take no responsibility for the investment allocations and transfers transacted
on your behalf by such third parties, in accordance with any allocation programs
employed by such third parties or any investment allocation recommendations made
by such third parties. While we offer support for a number of these programs as
of the date of this Prospectus, we do not support all such programs and do not
guarantee to always continue support for those programs we currently support or
may support in the future. We do not charge you for the administrative support
we provide to these third parties.
LIMITATIONS ON TRANSFERS
We retain the right to refuse transfers, either for one Owner or a group of
Owners, if we believe that: (a) excessive trading or a specific transfer request
or group of transfer requests may have a detrimental effect on Unit Prices or
the share prices of the Portfolios; or (b) we are informed by one or more of the
Portfolios that the purchase or redemption of shares is to be restricted because
of excessive trading or a specific transfer or group of transfers is deemed to
have a detrimental effect on the share prices of affected Portfolios. Without
limiting the above, the most likely scenario where either of the above could
occur would be if the aggregate amount of a trade or trades represented a
relatively large proportion of the total assets of a particular Portfolio. Under
such a circumstance, we will process transfers according to our rules then in
effect and provide notice if your transfer request was denied. If a transfer
request is denied, a new transfer request may be required.
DEATH DURING THE GRACE PERIOD
We deduct the unpaid charges from the Death Benefit when calculating the Death
Proceeds if the Insured dies during a grace period.
REINSTATEMENT
You may apply for reinstatement of the Policy if it lapses. We must receive this
application In Writing at our Office within five years of the date the lapse
occurred as measured from the end of the grace period. We may require evidence
of insurability satisfactory to us. In order to reinstate your Policy, you also
must pay us a reinstatement amount, including any applicable charges.
MATURITY
We currently do not require that the Cash Value of the Policy be paid out as of
any "maturity date". There is an assumed maturity date for purposes of
compliance with various state insurance requirements and for purposes of meeting
certain tests under the Code. Should we come to believe that the Cash Value must
be paid out as of the assumed maturity date in order to comply with state or
Federal requirements, then a Policy will mature as of the Policy Anniversary on
which the Insured is Age 100. If there are two Insureds, a Policy "matures" as
of the Policy Anniversary on which the younger Insured is Age 100 or would have
been Age 100 if the younger Insured is then deceased. If we must implement a
maturity date, we will pay out the Cash Value once the Policy matures. The
Policy will then end, and we will not have any more obligations under the
Policy. Certain rights and benefits under the Policy may be restricted after Age
100.
PRICING TRANSACTIONS
We "price" charges, transfers, distributions and payments on the date indicated
below. If such transactions are scheduled to occur on other than a Valuation
Day, we price such transactions as of the following Valuation Period:
(1) "Scheduled" transactions such as monthly deductions, transfers and
distributions are "priced" according to the Unit Price next computed
after the date such transactions are scheduled to occur. However, if a
transaction is "scheduled" to occur on a day other than a Valuation
Day, such transaction will be processed and priced on the next
Valuation Day following the scheduled transaction. "Scheduled"
transactions include, but are not limited to, all charges deducted on a
Monthly Processing Date, equalization of Debt and the Account Value in
the Loan Account on a Policy Anniversary, transfers under a dollar cost
averaging program or transfers previously scheduled with us at our
Office as part of any rebalancing, asset allocation or similar program,
or any program of scheduled distributions. However, we price scheduled
periodic payments which you authorize to be transferred from an account
at another financial institution for additional Premiums or loan
repayments as "unscheduled" transactions, because we cannot control the
administrative processing of the other financial institution.
(2) "Unscheduled" transactions such as transfers, loans or partial
withdrawals that are not subject to any medical waiver are "priced"
according to the Unit Price next computed after we receive the request
for such transactions at our Office. "Unscheduled" transfers include
any transfers processed in conjunction with any market timing program,
or transfers not previously scheduled with us at our Office pursuant to
any rebalancing, asset allocation or similar program which you employ
or you authorize to be employed on your behalf. "Unscheduled" transfers
received pursuant to an authorization to accept transfer instructions
using voice or data transmission over the phone are priced as of the
Valuation Period we receive the request at our Office for such
transactions. We price unscheduled payments sent to us as of the date
we receive such amounts at our Office. These include additional
Premiums, loan repayments, and payments to keep a Policy in effect
during a grace period or a reinstatement payment.
(3) We price surrenders, withdrawals subject to a medical waiver,
accelerated death benefit payments and payment of Death Proceeds as of
the date we receive at our Office all materials we require for such
transactions and such materials are satisfactory to us.
DELAYING TRANSACTIONS
We may defer any distribution or transfer from a Fixed Allocation or any payment
under a fixed settlement option for a period not to exceed the lesser of six (6)
months or the period permitted by law. If we defer a distribution or transfer
from any Fixed Allocation or any payment under a settlement option for more than
thirty days, or less where required by law, we pay interest at the minimum rate
required by law but not less than 3% per year on the amount deferred. We may
defer payment of proceeds of any distribution from any Sub-account or any
transfer from a Sub-account for a period not to exceed seven (7) calendar days
from the date the transaction is effected. This is a delay in payment only, and
is not a delay in the pricing of any such distribution or transfer. Any deferral
period begins on the date such distribution or transfer would otherwise have
been transacted.
All procedures, including distributions, based on the valuation of the
Sub-accounts may be postponed during the period: (1) the New York Stock Exchange
is closed (other than customary holidays or weekends) or trading on the New York
Stock Exchange is restricted as determined by the SEC; (2) the SEC permits
postponement and so orders; or (3) the SEC determines that an emergency exists
making valuation or disposal of securities not reasonably practical.
VOTING
You have voting rights in relation to Account Value maintained in the
Sub-accounts. You do not have voting rights in relation to Account Value
maintained in any Fixed Allocations, in the Loan Account or in relation to fixed
payments under a settlement option.
We will vote shares of the Portfolios in which the Sub-accounts invest in the
manner directed by Owners, unless we, in our sole discretion, determine that we
are required by law or regulation to vote otherwise. Owners have voting rights
equal to the number of shares represented by the Sub-account Units attributable
to their Policy.
We will vote the shares attributable to assets held in the Sub-accounts solely
for us rather than on behalf of Owners, or any share as to which we have not
received instructions, in the same manner and proportion as the shares for which
we have received instructions. We will do so separately for each Sub-account
from various classes that may invest in the same underlying mutual fund
portfolio.
The number of votes for a Portfolio will be determined as of the record date for
such Portfolio as chosen by its board of trustees or board of directors, as
applicable. We will furnish Owners with proper forms and proxies to enable them
to instruct us how to vote.
You may instruct us how to vote on the following matters: (a) changes to the
board of trustees or board of directors, as applicable; (b) changing the
independent accountant; (c) approval of changes to the investment advisory
agreement or adoption of a new investment advisory agreement; (d) any change in
the fundamental investment policy; and (e) any other matter requiring a vote of
the shareholders.
With respect to approval of changes to the investment advisory agreement,
approval of a new investment advisory agreement or any change in fundamental
investment policy, only Owners maintaining Account Value as of the record date
in a Sub-account investing in the applicable Portfolio will instruct us how to
vote on the matter, pursuant to the requirements of Rule 18f-2 under the
Investment Company Act of 1940.
TRANSFERS, ASSIGNMENTS, PLEDGES
Generally, your rights in a Policy may be transferred, assigned or pledged at
any time. These transactions may be subject to income taxes and certain penalty
taxes, depending in part on whether your Policy is treated as a MEC. You may
transfer, assign or pledge your rights to another person at any time, prior to
the death upon which the Death Benefit is payable. You must request a transfer
or provide us a copy of the assignment In Writing. A transfer or assignment is
subject to our acceptance. We will not be deemed to know of or be obligated
under any assignment prior to our receipt and acceptance thereof. We assume no
responsibility for the validity or sufficiency of any assignment.
REPORTS
We send any statements and reports required by applicable law or regulation to
you at your last known address of record. You should therefore give us prompt
notice of any address change. We reserve the right, to the extent permitted by
law and subject to your consent, to provide any prospectus, prospectus
supplements, confirmations, statements and reports required by applicable law or
regulation to you through our Internet Website at http://www.americanskandia.com
or any other electronic means. We send a confirmation statement to you each time
an unscheduled transaction is made affecting Account Value. Such transactions
will generally include changes in investment allocation or transfers among
investment options, loans and loan repayments, partial surrenders or
withdrawals, and any charges associated with such unscheduled transactions. We
also send quarterly statements detailing the activity affecting your Policy
during the prior quarter, including all scheduled and unscheduled transactions.
To the extent permitted by law, some types of scheduled transactions will only
be confirmed on a quarterly basis. Such transactions will generally include
those pre-authorized charges deducted on the Monthly Processing Date. You may
request additional reports. We reserve the right to charge up to $50 for each
such additional report. You should review the information in these statements
carefully. You must report all errors or corrections to us at our Office
immediately to assure proper crediting to your Policy. For transactions that are
confirmed immediately, we assume all transactions are accurate unless you notify
us otherwise within 10 days after the date of the transaction. For transactions
that are only confirmed on the quarterly statement, we assume all transactions
are accurate unless you notify us within 10 days of the end of the calendar
quarter. We may also send you or make available electronically through our
Internet Website an annual report and a semi-annual report containing financial
statements for the applicable Sub-accounts, as of December 31 and June 30,
respectively.
INCONTESTABILITY
We may not contest the validity of a Policy after it has been in effect during
the Insured's lifetime for two years from the Issue Date. If there are two
Insureds, this applies to the lifetime of either Insured. If the Policy is
reinstated, to the extent permitted by law, we may not contest the validity of a
Policy after it has been in effect for two years from the date of the
reinstatement.
SUICIDE
If an Insured commits suicide within two years of the Policy Date (or whatever
maximum period is permitted under law) or the date of a reinstatement if allowed
by law, the Death Benefit will be the greater of: (a) Premium paid less any
outstanding Debt and any partial withdrawals; or (b) the Cash Value. All other
requirements as to calculation and payment of Death Proceeds will apply.
MISSTATEMENT
We will adjust the amount of the Death Proceeds to conform to the facts if the
age or gender of an Insured is incorrectly stated. We will do so as specified in
the Policy and as permitted by law.
BACKDATING
We do not currently permit backdating the Policy Date to a date earlier than the
Issue Date. However, we reserve the right to permit backdating in the future.
POLICY LOANS ON EXCHANGES
Subject to our rules, we will establish a loan on a Policy that you purchase as
part of an exchange that is not subject to current taxation in accordance with
Section 1035 of the Code. However, we will charge the premium tax and DAC tax on
the amount of this "inherited" loan as if it was received as Premium. For
purposes of determining the Assessable Premium, the amount of the inherited loan
will not be treated as commissionable Premium.
The amount of this inherited loan in your Policy when established will be equal
to the loan that was in effect before you surrendered your prior policy. As of
the Policy Date, your Account Value will reflect any transferred "Premium" plus
the amount of the inherited loan. That portion of your Account Value equal to
the inherited loan amount will be allocated to the Loan Account as collateral
for the loan. By reflecting the inherited loan amount in the Account Value, the
sum of the Specified Amount and the Account Value initially will be more under
Death Benefit Option II than it would be without the loan. Also, there will be a
corresponding increase in the Minimum Required Death Benefit. In addition, for
purposes of determining the Guaranteed Minimum Death Benefit, we will deem the
"Premium" to be the amounts paid plus the loan amount as of the Policy Date. All
charges that are calculated as a percentage of your Account Value will increase
because the Account Value will reflect the amount of the loan allocated to the
Loan Account. Loans established as part of a 1035 exchange will be treated as
"preferred" loans (See "Loans" for a complete description.)
Withdrawals of amounts to pay loans transferred to an Exchange Policy from any
prior policy may have adverse taxable consequences. You should consult your tax
advisor before purchasing an Exchange Policy with the intention to make such a
withdrawal or before requesting such a withdrawal.
RESOLVING MATERIAL CONFLICTS
The Portfolios may be available to registered separate accounts offering either
or both life and annuity contracts of insurance companies not affiliated with
us. We also may offer life insurance policies and/or annuity contracts that
offer different variable investment options from those offered under this
Policy, but which invest in the same Portfolios. It is possible that differences
might arise between our Separate Account F and one or more accounts of other
insurance companies which offer a Portfolio as a Sub-account. It is also
possible that differences might arise between a Sub-account offered under this
Policy and variable investment options offered under different life insurance
policies or annuities we offer, even though such different variable investment
options invest in the same Portfolio. In some cases, it is possible that the
differences could be considered "material conflicts." Such a "material conflict"
could also arise due to changes in the law (such as state insurance law or
Federal tax law) which affect either these different life and annuity separate
accounts or differing life insurance policies and annuities. It could also arise
by reason of differences in voting instructions of persons with voting rights
under our policies and/or annuities and those of other companies, persons with
voting rights under annuities and those with rights under life policies, or
persons with voting rights under one of our life policies or annuities with
those under other life policies or annuities we offer. It could also arise for
other reasons. We will monitor events so we can identify how to respond to such
conflicts. If such a conflict occurs, we will take the necessary action to
protect persons with voting rights under our life policies or annuities
vis-a-vis those with rights under life policies or annuities offered by other
insurance companies. We will also take the necessary action to treat equitably
persons with voting rights under this Policy and any persons with voting rights
under any other life policy or annuity we offer.
MODIFICATION OF THE SEPARATE ACCOUNT
We reserve the right to do any or all of the following: (a) combine any
Sub-account(s) with any other Sub-account(s); (b) combine Separate Account F or
a portion thereof with other separate accounts; (c) deregister Separate Account
F under the Investment Company Act of 1940; (d) operate Separate Account F as a
management investment company under the Investment Company Act of 1940 or in any
other form permitted by law; (e) make changes required by any change in the
Securities Act of 1933, the Securities Exchange Act of 1934 or the Investment
Company Act of 1940; (f) make changes that are necessary to maintain the tax
status of your Policy under the Code; and (g) make changes required by any
change in other Federal or state laws relating to life insurance policies in
general or variable life insurance policies in particular.
We also may make additional Sub-accounts available to you from time to time.
These Sub-accounts will invest in Portfolios we believe to be suitable for the
Policy. We may or may not make a new Sub-account available to invest in any new
portfolio of one of the current underlying mutual funds should such a portfolio
be made available to Separate Account F.
We may eliminate Sub-accounts, combine two or more Sub-accounts or substitute
one or more new underlying mutual funds or portfolios for the one in which a
Sub-account is invested. Substitutions may be necessary if we believe a
Portfolio no longer suits the purpose of the Policy. This may happen due to a
change in laws or regulations, or a change in the investment objectives or
restrictions of a Portfolio, or because the Portfolio is no longer available for
investment, or for some other reason. We would obtain prior approval from the
insurance department of our state of domicile, if so required by law, before
making such a substitution, combination, deletion or addition. We also would
obtain prior approval from the SEC so long as required by law, and any other
required approvals before making such a substitution, combination, deletion or
addition.
ENTIRE CONTRACT
For any Policy issued, the entire contract between you and us includes the
Policy form and any of the following which may be attached to the Policy: riders
or endorsements, the copy of any Application and endorsements. All statements
made in any Application are deemed to be representations and not warranties. No
statement is used to void a Policy or defend a claim unless it is contained in
any Application attached to the Policy.
Only our President, one of our Vice Presidents or our Secretary may change or
waive any provisions of a Policy. Any change or waiver must be In Writing. To
the extent permitted by law, we are not bound by any promises or representations
made by or to any other person.
ADDITIONAL TAX CONSIDERATIONS
The following is a brief summary of certain Federal tax laws as they are
currently interpreted. No one can be certain that the laws or interpretations
will remain unchanged or that agencies or courts will always agree as to how the
tax law or regulations are to be interpreted. This discussion is not intended as
tax advice. You may wish to consult a professional tax advisor for tax advice as
to your particular situation.
Our Taxation: We are taxed as a life insurance company under Part I, subchapter
L, of the Code.
Treatment as "life insurance": The Policy was designed to qualify as a life
insurance contract under the Code. All terms and provisions of the Policy shall
be construed in a manner which is consistent with that design. In order to
qualify as a life insurance contract for federal income tax purposes and to
receive the tax treatment normally accorded life insurance under federal tax
law, a policy must satisfy certain requirements established by the Code. We
believe the Policy satisfies the applicable requirements. If we determine that a
Policy does not satisfy the applicable requirements we may take appropriate
action to conform the Policy to the applicable requirements. This action may
require making certain changes to your Policy. We will notify you before making
any such changes.
As life insurance, under most circumstances, the Beneficiary does not pay any
Federal income tax on the Death Proceeds. As a non-MEC, under most
circumstances: (a) any gain in the Policy is not taxed currently; and (b) any
amounts you receive as a partial withdrawal or if you surrender the Policy are
deemed for income tax purposes to come first from your basis in the Policy, with
any gain withdrawn taxed as ordinary income; and (c) if you assign or pledge any
portion of the Policy, the transaction is not treated as a distribution subject
to taxation.
Treatment as a "modified endowment contract": The tax treatment of the Policy
and any distribution while the Insured is alive will be different if the Policy
is deemed to be a MEC. Some of the key ways in which a MEC is treated
differently from other life insurance Policies are: (a) amounts your receive as
a partial withdrawal, loan, or if you surrender the Policy are deemed for income
tax purposes to come first from any gain in the tax year received; (b)
distributions of gain before the taxpayer's age 59 1/2 are subject to a 10%
penalty unless an exception applies; and (c) assignments or pledges as
collateral for a loan are deemed a taxable distribution to the extent of any
gain.
Exchanges: Section 1035 of the Code permits certain income tax-free exchanges of
life insurance policies. You must comply with various requirements for such
exchanges to be treated as tax-free, which include, but are not limited to: (a)
the need for the insured to be the same individual or individuals before and
after the exchange; (b) the need for the owner(s) to be the same before and
after the exchange; and (c) the need to have the Debt on a Policy as of the date
all premium is received equal to any outstanding indebtedness on the life
insurance exchanged for the Policy.
Transfers between investment options: Transfers between investment options are
not subject to taxation. The Treasury Department may promulgate guidelines under
which a variable life insurance policy will not be treated as life insurance for
tax purposes if persons with ownership rights have excessive control over the
investments underlying such a policy. Such guidelines may or may not address the
number of investment options or the number of transfers between investment
options offered. It is not known whether such guidelines, if in fact
promulgated, would have retroactive effect. It is also not known what effect, if
any, such guidelines may have on transfers between the investment options of the
Policy offered pursuant to this Prospectus. We will take any action, including
modifications to your Policy or the Sub-accounts, required to comply with such
guidelines if promulgated.
Generation skipping transfers: Under the Code certain taxes may be due when all
or part of a life insurance policy is transferred to or a death benefit is paid
to an individual two or more generations younger than the policy holder. These
generation-skipping transfers generally include those subject to federal estate
or gift tax rules. There is an aggregate $1 million exemption from tax on all
such transfers. We may be required to determine whether a transaction is a
direct skip as defined in the Code and the amount of the resulting tax. We will
deduct from your Policy or from any applicable payment treated as a direct skip
any amount of tax we are required to pay. You should consult with competent tax
counsel for more information on generation skipping transfers.
Diversification: Section 817(h) of the Code provides that a variable life
insurance policy, in order to qualify as life insurance, must have an
"adequately diversified" segregated asset account (including investments in a
mutual fund by the segregated asset account of insurance companies). The
Treasury Department's regulations prescribe the diversification requirements for
variable life insurance policy. We believe the underlying mutual fund portfolios
should comply with the terms of these regulations.
Withholding: Section 3405 of the Code provides for Federal income tax
withholding on the portion of a distribution which is includible in the gross
income of the recipient. Amounts to be withheld depend upon the nature of the
distribution. However, under most circumstances a recipient may elect not to
have income taxes withheld or have income taxes withheld at a different rate by
filing a completed election form with us. A withholding form may be required.
Accelerated Death Benefits: Payments of amounts that otherwise would be payable
to the Beneficiary as a result of an Insured's death can qualify for the same
tax-free treatment as death benefits if certain requirements are met. These
include requirements regarding the terminal illness of the Insured. We believe
payments under the provisions of the accelerated death benefit of the Policy
will meet the requirements of the Code and the regulations in order to qualify
as tax-free payments.
Continuing the Policy Beyond the Implied Maturity Date: We believe that a Policy
will continue to be treated as life insurance and, if applicable, as a MEC, if
it remains in force beyond the Policy's assumed maturity date. However, this tax
treatment is not certain, so you should consult your tax advisor before taking
this step. If the Policy is not treated as life insurance after such date, gain
in the Policy may no longer be taxed deferred, and all or a portion of the Death
Proceeds may be taxable to the Beneficiary.
Survivorship Policies: The Code does not directly address how certain features
of a policy paying on the death of a surviving insured should be treated. We
believe such a Policy should be treated as other life insurance policies, but
there is some uncertainty as to whether that is the case. If the surviving
Insured is an Owner, the Death Proceeds payable as a result of the death of the
last surviving Insured generally will be treated as part of the Owner's estate
for purposes of the Federal estate tax. If the surviving Insured was not an
Owner, the replacement cost of the Policy would be included in the estate of the
Owner upon his or her death and Death Proceeds payable as a result of the death
of the surviving Insured are includible in the person's estate if the proceeds
are payable to or for the benefit of that person's estate or if the surviving
Insured held incidents of ownership in the Policy within three years prior to
death.
Substandard Risk Classes: The Code provides limited guidance on the proper tax
treatment of policies issued on a substandard basis (i.e. those in a substandard
risk class). The Code limits the amount we can charge for mortality costs and
other expenses we use when we calculate whether your Policy qualifies as life
insurance under the Code. We are required to base our calculations on reasonable
mortality and other charges reasonably expected to be paid. We believe that the
charges used for your Policy should meet the current requirement for
"reasonableness." However, we reserve the right to make changes to the current
and guaranteed mortality charges and factors used to determine the Minimum
Required Death Benefit, if new regulations are issued that require a change to
ensure that your Policy qualifies as life insurance under the Code. This could
result in a change in your Death Benefit.
Other Taxes: Amounts received or deemed received from a Policy that may be
subject to Federal income tax also may be subject to state income taxes. The
fair market value of a Policy or the Death Proceeds may be included under
certain circumstances in an estate for purposes of state inheritance taxes or
Federal estate taxes. Federal estate and gift taxes are integrated for various
purposes. An unlimited marital deduction may apply for purposes of Federal
estate and gift taxes, which would allow deferral of taxes until the death of
the surviving spouse.
SAFEKEEPING OF THE ASSETS
We maintain the assets of the Separate Account and those in our general account.
The assets of the Separate Account are segregated from those in our general
account.
REGULATION
We are organized as a Connecticut stock life insurance company, and are subject
to Connecticut law governing insurance companies. We are regulated and
supervised by the Connecticut Commissioner of Insurance. By March 1 of every
year, we must prepare and file an annual statement, in a form prescribed by the
Connecticut Insurance Department, which covers our operations for the preceding
calendar year, and must prepare and file our statement of financial condition as
of December 31 of such year. The Commissioner and his or her agents have the
right at all times to review or examine our books and assets. A full examination
of our operations will be conducted periodically according to the rules and
practices of the National Association of Insurance Commissioners ("NAIC"). We
are subject to the insurance laws and various Federal and state securities laws
and regulations and to regulatory agencies, such as the Securities and Exchange
Commission and the Connecticut Banking Department, which administer those laws
and regulations.
We can be assessed up to prescribed limits for policyholder losses incurred by
insolvent insurers under the insurance guaranty fund laws of most states. We
cannot predict or estimate the amount any such future assessments we may have to
pay. However, the insurance guaranty laws of most states provide for deferring
payment or exempting a company from paying such an assessment if it would
threaten such insurer's financial strength.
Several states, including Connecticut, regulate insurers and their affiliates
under insurance holding company laws and regulations. This applies to us and our
affiliates. Under such laws, inter-company transactions, such as dividend
payments to parent companies and transfers of assets, may be subject to prior
notice and approval, depending on factors such as the size of the transaction in
relation to the financial position of the companies.
Currently, the federal government does not directly regulate the business of
insurance. However, federal legislative, regulatory and judicial decisions and
initiatives often have significant effects on our business. Types of changes
that are most likely to affect our business include changes to: (a) the taxation
of life insurance companies; (b) the tax treatment of insurance products; (c)
the securities laws, particularly as they relate to insurance and annuity
products; (d) the "business of insurance" exemption from many of the provisions
of the anti-trust laws; and (e) any initiatives directed toward improving the
solvency of insurance companies. We would also be affected by federal
initiatives that have impact on the ownership of or investment in United States
companies by foreign companies or investors.
LEGAL MATTERS
The General Counsel of American Skandia Life Assurance Corporation has passed on
the legal matters relating to the offering of these Policies.
LEGAL PROCEEDINGS
As of the date of this Prospectus, neither we nor American Skandia Marketing,
Incorporated were involved in any litigation outside of the ordinary course of
business, and know of no material claims.
EXPERTS
The consolidated financial statements of American Skandia Life Assurance
Corporation at December 31, 1999, 1998 and 1997, and for the years then ended,
and the financial statements of American Skandia Life Assurance Corporation
Variable Account F at December 31, 1999, and for the period June 26, 1998
through December 31, 1998, appearing in this Prospectus and Registration
Statement have been audited by Ernst & Young LLP, independent auditors.
William H. Strong, Vice President, FSA, MAAA, has approved the hypothetical
illustration included in this Prospectus and Registration Statement. We have
included them relying on his opinion that they are reasonable.
DISTRIBUTION OF THIS OFFERING
American Skandia Marketing, Incorporated ("ASM"), a wholly-owned subsidiary of
American Skandia, Inc., acts as the principal underwriter of the Policies. ASM
was incorporated under the laws of the State of Delaware on September 8, 1987.
ASM's principal business address is One Corporate Drive, Shelton, Connecticut
06484. ASM is a broker-dealer registered with the SEC under the 1934 Act and a
member of the National Association of Securities Dealers, Inc. ("NASD").
ASM will enter into distribution agreements with certain broker-dealers
registered under the Securities and Exchange Act of 1934 or with entities which
may otherwise offer the Policies that are exempt from such registration. In
addition, ASM may offer Policies directly to potential purchasers. Generally the
maximum initial commission to be paid on premiums received is 30%. However, we
may pay higher amounts under certain situations. In addition, a portion of
compensation may be paid from time to time based on all or a portion of either
the Account Value or the Cash Value. We reserve the right to base commissions
from time-to-time on the investment options chosen by Owners, including
investment options that may be deemed our "affiliates" or "affiliates" of ASM
under the Investment Company Act of 1940.
We may pay an on-going service fee in relation to providing certain statistical
information upon request by Owners about the investment options and the
Portfolios. We may make the fee payable to the service providers based on either
the Account Value or Cash Value of Policies. Under most circumstances, we will
engage the broker-dealer of record for your Policy, or the entity of record if
such entity could offer Policies without registration as a broker-dealer (i.e.
certain banks), to be your resource for the statistical information, and to be
available upon your request to both provide and explain such information to you.
The broker-dealer of record or the entity of record is the firm which sold you
the Policy, unless later changed. Some portion of the fee we pay for this
service may be payable to your representative.
We may structure on-going sales compensation and the on-going service fees such
that no fee is payable based on the value in Fixed Allocations. If that were to
occur, it is possible that your representative may receive on-going service fee
compensation, but only in relation to value maintained in variable investment
options.
From time to time, as permitted by law, we may promote the sale of our products
such as the Policies offered pursuant to this Prospectus through programs of
non-cash rewards to registered representatives of participating broker-dealers.
We may withdraw or alter such promotions at any time.
To the extent permitted, we may advertise certain information regarding the
performance of the investment options that does not take into consideration the
effect of the deductions for taxes, the cost of insurance charges, the sales
charge or the contingent deferred sales charge. This performance information may
help you review the performance of the investment options and provide a basis
for comparison between the Policy's investment options. This information may be
less useful when comparing the performance of the investment options with the
performance of investment options provided in other variable life policies
because each plan of life insurance will have its own applicable charges. This
information is even less useful in comparing performance to that of any savings
or investment vehicle, rather than variable life insurance.
Performance information on the Sub-accounts is based on past performance only
and is no indication of future performance. Actual performance will depend on
the type, quality and, for some of the Sub-accounts, the maturities of the
investments held by the Portfolios and upon prevailing market conditions and the
response of the Portfolios to such conditions. Actual performance will also
depend on changes in the expenses of the Portfolios. Such changes are reflected,
in turn, in the Sub-accounts which invest in such Portfolios. In addition, the
charges deducted from your Account Value and those assessed against each
Sub-account will affect performance.
Certain of the Portfolios existed prior to the inception of the Sub-accounts
available under the Policy. To the extent permitted by applicable law,
performance quoted in advertising regarding such Sub-accounts may indicate
periods during which the Portfolios have been in existence but prior to the
inception of the Sub-account(s) or the initial offering of the Policies. Such
performance is considered hypothetical historical performance because the
Sub-accounts did not exist during the period the performance was achieved. Such
hypothetical historical performance is calculated using the same assumptions
employed in calculating historical performance since inception of the
Sub-accounts. Any such historical performance will be based on assumptions.
These include assumptions regarding: (a) the Age, tobacco usage class, risk
class and gender, where applicable, of an Insured or Insureds; (b) the life
insurance test elected to qualify as life insurance under the Code; (c) the
amount and timing of Premium payments, the Specified Amount, the Death Benefit
Option and the Policy Date; and (d) assumptions about a lack of transfers,
loans, loan repayments and withdrawals as well as no changes to the Specified
Amount and Death Benefit Option during the period for which performance is
quoted.
American Skandia Life Assurance Corporation may advertise its rankings and/or
ratings by independent financial ratings services. Such rankings may help you in
evaluating our ability to meet our obligations in relation to Fixed Allocations,
pay Death Proceeds, make payments under any settlement options or administer
Policies. Such rankings and ratings do not reflect or relate to the performance
of Separate Account F or the underlying Portfolios.
ILLUSTRATIONS
In Appendix A we provide examples of the kind of hypothetical illustrations
available to help you better understand how a Policy works. In that Appendix, we
also provide information on how you may obtain additional hypothetical
illustrations. In Appendix G, we provide hypothetical illustrations of how
exercise of the accelerated death benefit provision affects the values of a
Policy.
EXECUTIVE OFFICERS AND DIRECTORS
Our executive officers, directors and certain significant employees, their ages,
positions with us and principal occupations are indicated below. The immediately
preceding work experience is provided for officers that have not been employed
by us or an affiliate for at least five years as of the date of this Prospectus.
Name/ Position with American Skandia
Age Life Assurance Corporation Principal Occupation
Robert M. Arena Vice President, Vice President,
30 Director of Product Director of Product Management:
Management American Skandia Life
Assurance Corporation
Mr. Arena joined us in 1995. He previously held an internship position with KPMG
Peat Marwick in 1994 and the position of Group Sales Representative with Paul
Revere Insurance from October, 1990 to August, 1993.
Gordon C. Boronow* President and President and
45 Deputy Chief Executive Officer Deputy Chief Executive Officer:
Director (since July, 1991) American Skandia Life
Assurance Corporation
Malcolm M. Campbell Director (since July, 1991) Director of Operations and
42 Chief Actuary, Assurance and
Financial Services Division:
Skandia Insurance Company Ltd.
Jan R. Carendi* Chief Executive Senior Executive Vice President and
53 Officer and Member of Executive Management Group:
Chairman of the Skandia Insurance Company Ltd.
Board of Directors
Director (since May, 1988)
Y.K. Chan Senior Vice President and Senior Vice President and
41 Chief Information Officer Chief Information Officer:
American Skandia Life
Assurance Corporation
Mr. Chan joined us in 1999. He previously held the position of Chief Information
Officer with E.M. Warburg Pincus from January 1995 until April 1999 and the
position of Vice President, Client Server Application Development from January
1991 until January 1995.
Lincoln R. Collins Executive Vice President Executive Vice President,
37 Director (since February, 1996) Chief Operating Officer
American Skandia Life
Assurance Corporation
Henrik Danckwardt Director (since July, 1991) Director of Finance
44 and Administration,
Assurance and Financial
Services Division:
Skandia Insurance Company Ltd.
Wade A. Dokken Director (since July, 1991) President and Deputy
38 Chief Executive Officer:
American Skandia Marketing, Incorporated
Larisa Gromyko Director of Compliance Director of Compliance:
52 American Skandia Life
Assurance Corporation
Brian L. Hirst Vice President, Vice President,
50 Corporate Actuary Corporate Actuary:
American Skandia Life
Assurance Corporation
Mr. Hirst joined us in 1996. He previously held the positions of Vice President from 1993 to 1996 and Second
Vice President from 1987 to 1992 at Allmerica Financial.
N. David Kuperstock Vice President, Vice President,
46 Product Development Product Development:
American Skandia Life
Assurance Corporation
Thomas M. Mazzaferro Executive Vice President and Executive Vice President and
45 Chief Financial Officer, Chief Financial Officer:
Director (since September, 1994) American Skandia Life
Assurance Corporation
Gunnar J. Moberg Director (since October, 1994) Director - Marketing and Sales,
43 Assurances and Financial
Services Division:
Skandia Insurance Company Ltd.
David R. Monroe Senior Vice President, Senior Vice President,
36 Treasurer and Treasurer and
Corporate Controller Corporate Controller:
American Skandia Life
Assurance Corporation
Mr. Monroe joined us in 1996. He previously held positions of Assistant Vice
President and Director at Allmerica Financial from August, 1994 to July, 1996
and Senior Manager at KPMG Peat Marwick from July, 1983 to July, 1994.
Polly Rae Vice President Vice President,
36 Key Account Operations Key Account Operations:
American Skandia Life
Assurance Corporation
Rodney D. Runestad Vice President Vice President:
48 American Skandia Life
Assurance Corporation
Anders O. Soderstrom Executive Vice President Executive Vice President:
38 Director (since September, 1994) American Skandia Life
Assurance Corporation
William H. Strong Vice President, Vice President,
55 Product Innovation Product Innovation:
American Skandia Life
Assurance Corporation
Mr. Strong joined us in 1997. He previously held the position of Vice President
with American Financial Systems from June 1994 to October 1997 and the position
of Actuary with Connecticut Mutual Life from June 1965 to June 1994.
Amanda C. Sutyak Executive Vice President Vice President:
40 Director (since July, 1991) American Skandia
Marketing, Incorporated
C. Ake Svensson Director (since December, 1994) Vice President,
47 Business Development:
American Skandia, Inc.
Mary Toumpas Director of Advertising Compliance Vice President and
47 Compliance Director:
American Skandia
Marketing, Incorporated
Ms. Toumpas joined us in 1997. She previously held the position of Assistant Vice President with Chubb
Life/Chubb Securities.
Bayard F. Tracy Director (since September, 1994) Senior Vice President,
50 National Sales Manager:
American Skandia
Marketing, Incorporated
Jeffrey M. Ulness Vice President, Vice President,
37 Product Management Product Management:
American Skandia Life
Assurance Corporation
- --------
* Trustees of American Skandia Trust, one of the underlying mutual funds in
which the Sub-accounts offered pursuant to this Prospectus invest.
AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
TO BE FILED BY AMENDMENT
FINANCIAL STATEMENTS FOR AMERICAN SKANDIA LIFE ASSURANCE
CORPORATION SEPARATE ACCOUNT F
TO BE FILED BY AMENDMENT
APPENDIX A
HYPOTHETICAL ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES AND CASH VALUES
It is impossible to illustrate exactly how a Policy will perform in the future.
However, you may better understand how a Policy works, and may be able to better
compare a Policy with other life insurance plans, using hypothetical
illustrations based on the personal characteristics of the Insured(s) as well as
certain assumptions about the future. You can do this using the hypothetical
illustrations provided in this Appendix A. You can also do this by requesting
from us personalized hypothetical illustrations based on: (a) the Age(s) of the
Insured(s); (b) the tobacco usage class and expected risk class(es) of the
Insured(s); (c) the gender of the Insured(s), where permitted; (d) the Specified
Amount you seek; (e) the test that you elect to qualify your Policy as life
insurance; (f) which Death Benefit Option (I, II, III or IV) is to apply; and
(g) the amount and timing of Premiums you intend to pay. Please forward any such
request to us at our address as shown on the first page of this Prospectus.
As of the date of this Prospectus, we only provide such personalized
hypothetical illustrations on paper. We reserve the right to make such
illustrations available in the future via electronic transmission or as part of
a multi-media presentation. We may also provide personalized hypothetical
illustrations that assume future loans, withdrawals, loan repayments, Premium
payments on other than the Policy Date and Policy Anniversaries, changes after
the Policy Date in the Death Benefit Option on in the Specified Amount or
varying assumed rates of return. Certain of these illustrations may not be
available as of the date of this Prospectus. However, we reserve the right to
make such illustrations available in the future.
The hypothetical illustrations that follow show the changes in the Death
Benefit, Account Value and Cash Value over time based on certain assumptions.
All values are provided as of the end of each Policy Year shown. Hypothetical
illustrations are shown for each Death Benefit Option and for both of the
applicable life insurance tests under the Code. The assumptions used are as
follows:
1. Hypothetical average annual gross rates of return in the Portfolios of
0%, 6% and 12%. Of course, actual investment performance is not a
constant rate. If the hypothetical gross rate of return were to
fluctuate above or below the 0%, 6% or 12% average over a period of
years, the Death Benefit, Account Value and Cash Value may be
different. For hypothetical rates of return of 0% and 6%, the
illustrations will indicate if a Policy would lapse. HYPOTHETICAL
RATES OF RETURN ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A
REPRESENTATION OF PAST OR FUTURE PERFORMANCE.
2. Hypothetical constant expense ratios of [0.98%] for the Portfolios.
The total annual expenses for the underlying mutual funds are shown in
the section entitled "Variable Investment Options." The [0.98%]
hypothetical expense ratio is the weighted average of the actual total
annual expenses for all available Portfolios as of December 31, 1998.
Certain of the Portfolios have not been in existence for a full year
and, therefore, the total annual expenses for those Portfolios are
estimated and annualized. The [0.98%] hypothetical expense ratio, when
deducted from the hypothetical average annual gross rates of return
equals a hypothetical average annual net rate of return of [-0.98%],
[5.02%] and [11.02%], respectively.
3. The mortality and expense risk charge assessed against the assets in
the Separate Account at an annualized rate of 0.90% for Policy Years
1-15 and 0.25% for Policy Years 16 and thereafter. The charge for
administrative expenses connected with operating the Separate Account
is 0.25% per year. It is also assumed that there is no tax charge
assessed against the Separate Account.
4. The charges under the Policy, including the current cost of insurance
charges that differ by gender, tobacco usage class, risk class and
attained age. It is assumed that there are no transfer fees
applicable. The hypothetical illustrations are presented based on both
the current and guaranteed cost of insurance charges.
5. Premium taxes are assessed at the rate of 2.5%
6. There are no loans, loan repayments, withdrawals, accelerated death
benefit payments or amounts paid to maintain the Policy in effect
during a grace period. The hypothetical values will include Cash Value
Credits if applicable.
7. The Age(s) and, where applicable, gender of the Insured(s) shown in
each illustration, as are the applicable Death Benefit Option and the
life insurance test under the Code. If you choose Death Benefit Option
IV, the assumed interest rate will be 5%.
8. The Insured(s) is/are eligible for the "no tobacco usage" class.
9. The Insured(s) is/are considered to be in the preferred risk class. If
the Insured(s) is/are placed in a substandard risk class, the values
for the Death Benefit, Account Value and Cash Value will differ
because the risk classification impacts charges under the Policy.
10. The Premium payments and Specified Amount are as shown in each
illustration. It is assumed that Premium payments are allocated on the
first day of the Policy Year shown.
11. Neither the Death Benefit Option nor the Specified Amount is changed
after the Policy Date.
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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
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Illustration Assumptions:
Issue State: Connecticut
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- --------------------- -------------- ------------------ ------------------ ------------------ ------------------- ------------------
Death Benefit Option Specified Issue Age(s) Male/Female Single Life/ Hypothetical Rate Tobacco Usage
Amount Joint Life of Return Classification
- --------------------- -------------- ------------------ ------------------ ------------------ ------------------- ------------------
- --------------------- -------------- ------------------ ------------------ ------------------ ------------------- ------------------
I/II/III/IV Male/ Single/Joint Tobacco Usage/No
Female Usage
- --------------------- -------------- ------------------ ------------------ ------------------ ------------------- ------------------
- ------------- ---------------- ------------------------------------------------- ---------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
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----------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
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1
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2
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3
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4
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5
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6
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
7
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
8
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
9
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
10
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
11
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
12
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
13
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
14
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
15
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
16
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
17
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
18
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
19
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
20
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
25
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
30
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
35
- ------------- ------------ --------------- ------------ ----------- ------------ -------------- ----------- ------------ -----------
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
APPENDIX B
MULTIPLE FACTORS FOR DETERMINATION OF MINIMUM REQUIRED DEATH BENEFITS -
CASH VALUE ACCUMULATION TEST
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Attained Male Male Female Female Unisex Unisex
Age No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
0 10.342889 10.342889 12.907301 12.907301 10.762146 10.762146
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
1 10.190317 10.190317 12.688989 12.688989 10.599529 10.599529
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
2 9.889919 9.889919 12.319258 12.319258 10.287454 10.287454
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
3 9.592070 9.592070 11.951280 11.951280 9.977856 9.977856
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
4 9.298905 9.298905 11.588414 11.588414 9.673048 9.673048
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
5 9.009218 9.009218 11.232252 11.232252 9.372522 9.372522
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
6 8.722792 8.722792 10.881891 10.881891 9.075163 9.075163
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
7 8.440163 8.440163 10.537673 10.537673 8.782254 8.782254
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
8 8.161817 8.161817 10.199897 10.199897 8.494209 8.494209
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
9 7.889296 7.889296 9.869720 9.869720 8.212001 8.212001
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
10 7.623823 7.623823 9.547222 9.547222 7.936973 7.936973
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
11 7.366338 7.366338 9.232460 9.232460 7.670163 7.670163
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
12 7.118866 7.118866 8.927638 8.927638 7.413309 7.413309
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
13 6.882900 6.882900 8.633085 8.633085 7.167689 7.167689
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
14 6.659106 6.659106 8.348988 8.348988 6.934195 6.934195
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
15 6.447167 6.447167 8.075417 8.075417 6.712623 6.712623
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
16 7.714038 6.246384 8.883289 7.811801 7.921276 6.501967
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
17 7.490087 6.067088 8.601262 7.562175 7.687332 6.311944
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
18 7.274451 5.895022 8.327973 7.321069 7.461892 6.129616
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
19 7.065283 5.728835 8.063091 7.088069 7.243510 5.953228
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 6.861458 5.567128 7.806305 6.861967 7.030541 5.781887
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 6.661653 5.408986 7.556813 6.642537 6.822445 5.614310
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 6.464794 5.253425 7.314421 6.429210 6.617636 5.449947
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 6.270710 5.099656 7.078500 6.222172 6.416275 5.287891
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 6.079284 4.947868 6.849350 6.021229 6.218176 5.128299
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 5.890750 4.797861 6.626794 5.826195 6.023827 4.971113
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 5.705040 4.649678 6.410659 5.636893 5.832763 4.816305
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 5.522898 4.504032 6.201109 5.453650 5.645711 4.664576
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 5.344683 4.361348 5.997622 5.275991 5.462995 4.516156
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 5.170680 4.221963 5.800329 5.103941 5.284868 4.371380
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 5.001105 4.086269 5.609297 4.937480 5.111516 4.230639
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 4.836116 3.954433 5.424047 4.776558 4.942867 4.093959
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 4.675997 3.826566 5.244630 4.620750 4.779217 3.961457
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 4.520775 3.702732 5.070836 4.470011 4.620597 3.833199
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 4.370595 3.583042 4.902664 4.324416 4.467161 3.709205
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 4.225394 3.467465 4.740074 4.183848 4.318842 3.589457
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 4.085086 3.356021 4.582997 4.048174 4.175553 3.473994
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 3.949567 3.248690 4.431647 3.917840 4.037186 3.362809
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 3.818941 3.145553 4.285998 3.792813 3.903851 3.256004
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 3.693040 3.046504 4.145845 3.673016 3.775375 3.153477
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 3.571693 2.951476 4.010977 3.558241 3.651580 3.055167
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 3.454900 2.860428 3.881415 3.448537 3.532470 2.960982
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 3.342458 2.773184 3.756910 3.343648 3.417834 2.870806
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 3.234168 2.689611 3.637120 3.243173 3.307466 2.784401
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 3.129908 2.609564 3.521738 3.146753 3.201166 2.701638
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 3.029541 2.532930 3.410485 3.054066 3.098808 2.622372
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 2.932983 2.459507 3.303261 2.964942 3.000319 2.546412
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 2.840076 2.389067 3.199881 2.879156 2.905488 2.473497
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 2.750661 2.321491 3.100233 2.796498 2.814220 2.403491
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 2.664621 2.256653 3.004132 2.716869 2.726358 2.336319
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 2.581834 2.194449 2.911514 2.640204 2.641788 2.271832
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Attained Male Male Female Female Unisex Unisex
Age No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 2.502245 2.134813 2.822298 2.566383 2.560470 2.209991
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 2.425812 2.077736 2.736386 2.495279 2.482337 2.150759
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 2.352495 2.023195 2.653757 2.426909 2.407368 2.094123
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 2.282258 1.971184 2.574318 2.361224 2.335512 2.040066
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 2.215003 1.921607 2.497845 2.298000 2.266657 1.988478
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 2.150641 1.874323 2.424204 2.237060 2.200707 1.939204
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 2.089041 1.829175 2.353159 2.178160 2.137499 1.892074
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 2.030020 1.786005 2.284466 2.121004 2.076846 1.846923
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 1.973499 1.744664 2.217941 2.065411 2.018656 1.803579
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 1.919419 1.705054 2.153572 2.011322 1.962861 1.761947
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 1.867715 1.667166 2.091395 1.958834 1.909430 1.722035
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 1.818313 1.631023 2.031522 1.908128 1.858318 1.683884
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 1.771222 1.596648 1.974084 1.859457 1.809548 1.647549
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 1.726411 1.564046 1.919204 1.812975 1.763101 1.613050
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 1.683805 1.533171 1.866818 1.768643 1.718910 1.580343
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 1.643300 1.503897 1.816773 1.726291 1.676876 1.549291
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 1.604764 1.476075 1.768841 1.685679 1.636838 1.519731
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 1.568051 1.449538 1.722783 1.646485 1.598627 1.491460
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 1.533054 1.424158 1.678405 1.608508 1.562129 1.464331
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 1.499720 1.399895 1.635655 1.571688 1.527284 1.438291
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 1.468047 1.376751 1.594581 1.536120 1.494089 1.413350
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 1.438063 1.354779 1.555314 1.502053 1.462589 1.389586
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 1.409834 1.334059 1.518005 1.469679 1.432868 1.367099
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 1.383379 1.314626 1.482760 1.439131 1.404950 1.345937
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 1.358636 1.296498 1.449578 1.410430 1.378783 1.326116
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 1.335469 1.279631 1.418378 1.383477 1.354239 1.307580
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 1.313718 1.263864 1.388992 1.358100 1.331154 1.290152
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 1.293201 1.248999 1.361233 1.334088 1.309345 1.273628
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 1.273759 1.234861 1.334950 1.311271 1.288648 1.257826
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 1.255309 1.221364 1.310065 1.289565 1.268984 1.242660
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
81 1.237839 1.208496 1.286574 1.268966 1.250340 1.228120
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
82 1.221386 1.196307 1.264515 1.249510 1.232759 1.214254
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
83 1.206024 1.184882 1.243944 1.231249 1.216310 1.201144
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
84 1.191790 1.174263 1.224858 1.214302 1.201025 1.188858
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
85 1.178654 1.164403 1.207192 1.198599 1.186864 1.177349
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
86 1.166512 1.155169 1.190822 1.184011 1.173721 1.166496
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
87 1.155226 1.146356 1.175596 1.170379 1.161453 1.156126
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
88 1.144611 1.137856 1.161343 1.157508 1.149880 1.146117
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
89 1.134451 1.129578 1.147875 1.145194 1.138803 1.136350
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
90 1.124540 1.121277 1.134998 1.133196 1.128023 1.126599
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
91 1.114649 1.112675 1.122488 1.121417 1.117328 1.116680
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
92 1.104523 1.103442 1.110106 1.109599 1.106476 1.106325
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
93 1.093858 1.093346 1.097598 1.097460 1.095193 1.095309
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
94 1.082392 1.082252 1.084722 1.084722 1.083237 1.083449
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
95 1.070054 1.070054 1.071362 1.071362 1.070535 1.070696
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
96 1.057074 1.057074 1.057701 1.057701 1.057307 1.057384
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
97 1.044319 1.044319 1.044548 1.044548 1.044405 1.044433
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
98 1.034629 1.034629 1.034629 1.034629 1.034629 1.034629
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
99 1.025648 1.025648 1.025648 1.025648 1.025648 1.025648
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
The Minimum Required Death Benefit under the Cash Value Accumulation Test is
determined by treating the Account Value as if it were a net single premium. We
determine the Minimum Required Death Benefit by multiplying the Account Value by
factors that are determined for your Policy as of the Policy Date. These factors
vary by the attained Age, gender (where permitted), tobacco usage class and risk
class of each Insured. The factors shown above are applicable for Insureds in
the preferred risk class. The factors for other risk classes are available upon
request. Factors for joint life cases depend upon a standard insurance industry
method used to derive the applicable factor for both Insureds.
- --------------------------------------------------------------------------------
APPENDIX B
MULTIPLE FACTORS FOR DETERMINATION OF MINIMUM REQUIRED DEATH BENEFITS -
GUIDELINE PREMIUM TEST
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
Attained Corridor Attained Corridor Attained Female
Age Factors Age Factors Age No Tobacco Use
---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ----------------
0 2.50 33 2.50 66 1.19
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
1 2.50 34 2.50 67 1.18
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
2 2.50 35 2.50 68 1.17
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
3 2.50 36 2.50 69 1.16
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
4 2.50 37 2.50 70 1.15
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
5 2.50 38 2.50 71 1.13
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
6 2.50 39 2.50 72 1.11
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
7 2.50 40 2.50 73 1.09
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
8 2.50 41 2.43 74 1.07
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
9 2.50 42 2.36 75 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
10 2.50 43 2.29 76 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
11 2.50 44 2.22 77 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
12 2.50 45 2.15 78 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
13 2.50 46 2.09 79 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
14 2.50 47 2.03 80 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
15 2.50 48 1.97 81 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
16 2.50 49 1.91 82 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
17 2.50 50 1.85 83 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
18 2.50 51 1.78 84 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
19 2.50 52 1.71 85 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
20 2.50 53 1.64 86 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
21 2.50 54 1.57 87 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
22 2.50 55 1.50 88 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
23 2.50 56 1.46 89 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
24 2.50 57 1.42 90 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
25 2.50 58 1.38 91 1.04
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
26 2.50 59 1.34 92 1.03
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
27 2.50 60 1.30 93 1.02
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
28 2.50 61 1.28 94 1.01
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
29 2.50 62 1.26 95 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
30 2.50 63 1.24 96 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
31 2.50 64 1.22 97 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
32 2.50 65 1.20 98 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
99 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
The Minimum Required Death Benefit under the Guideline Premium Test is
determined by treating the Account Value as if it were a net single premium. We
determine the Minimum Required Death Benefit by multiplying the Account Value by
a corridor factor. The corridor factors are based on the Insured's age at the
beginning of each Policy Year. The corridor factors do not vary by gender,
tobacco usage class or risk class of the Insured. Factors for joint life cases
are based upon the age of the younger Insured, regardless of whether the younger
Insured is alive.
- --------------------------------------------------------------------------------
APPENDIX C
GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE CHARGES
(Per $1,000 of Net Amount at Risk)
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
0 N/A 0.21943 N/A 0.15680 N/A 0.20690
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
1 N/A 0.08587 N/A 0.07003 N/A 0.08254
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
2 N/A 0.08254 N/A 0.06669 N/A 0.07920
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
3 N/A 0.08087 N/A 0.06502 N/A 0.07753
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
4 N/A 0.07753 N/A 0.06419 N/A 0.07503
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
5 N/A 0.07336 N/A 0.06252 N/A 0.07086
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
6 N/A 0.06919 N/A 0.06085 N/A 0.06753
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
7 N/A 0.06502 N/A 0.05919 N/A 0.06419
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
8 N/A 0.06252 N/A 0.05835 N/A 0.06169
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
9 N/A 0.06169 N/A 0.05752 N/A 0.06085
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
10 N/A 0.06252 N/A 0.05668 N/A 0.06169
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
11 N/A 0.06753 N/A 0.05835 N/A 0.06586
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
12 N/A 0.07670 N/A 0.06085 N/A 0.07336
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
13 N/A 0.08921 N/A 0.06419 N/A 0.08421
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
14 N/A 0.10339 N/A 0.06836 N/A 0.09672
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
15 N/A 0.11841 N/A 0.07253 N/A 0.10923
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
16 0.12342 0.16348 0.07503 0.08421 0.11340 0.14762
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
17 0.13093 0.17517 0.07753 0.08838 0.12008 0.15847
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
18 0.13593 0.18435 0.08004 0.09255 0.12509 0.16598
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
19 0.13927 0.19020 0.08254 0.09505 0.12759 0.17183
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
20 0.14011 0.19354 0.08421 0.09755 0.12926 0.17433
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
21 0.13844 0.19354 0.08587 0.09922 0.12759 0.17517
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
22 0.13593 0.19020 0.08671 0.10172 0.12592 0.17266
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
23 0.13260 0.18686 0.08838 0.10423 0.12342 0.17016
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
24 0.12926 0.18185 0.09004 0.10673 0.12175 0.16682
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
25 0.12509 0.17600 0.09171 0.10923 0.11841 0.16265
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
26 0.12258 0.17266 0.09422 0.11340 0.11674 0.16098
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
27 0.12091 0.17099 0.09588 0.11674 0.11591 0.16014
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
28 0.12008 0.17099 0.09839 0.12091 0.11591 0.16098
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
29 0.12008 0.17350 0.10172 0.12592 0.11674 0.16432
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
30 0.12091 0.17767 0.10423 0.13176 0.11758 0.16849
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
31 0.12342 0.18352 0.10756 0.13677 0.12008 0.17433
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
32 0.12675 0.19103 0.11090 0.14261 0.12342 0.18185
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
33 0.13176 0.20106 0.11507 0.15012 0.12842 0.19103
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
34 0.13760 0.21275 0.12008 0.15847 0.13427 0.20189
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
35 0.14428 0.22695 0.12592 0.16765 0.14094 0.21525
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
36 0.15179 0.24366 0.13427 0.18185 0.14845 0.23113
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
37 0.16181 0.26455 0.14428 0.19855 0.15847 0.25118
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
38 0.17266 0.28796 0.15513 0.21776 0.16932 0.27375
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
39 0.18435 0.31471 0.16682 0.23865 0.18101 0.29966
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
40 0.19855 0.34566 0.18101 0.26372 0.19521 0.32893
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
41 0.21358 0.37912 0.19604 0.29046 0.21024 0.36155
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
42 0.22946 0.41595 0.21108 0.31722 0.22611 0.39586
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
43 0.24700 0.45614 0.22611 0.34398 0.24282 0.43353
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
44 0.26622 0.50054 0.24115 0.37076 0.26121 0.47457
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
45 0.28796 0.54748 0.25787 0.39921 0.28210 0.51814
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
46 0.31137 0.59612 0.27542 0.42851 0.30384 0.56257
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
47 0.33646 0.64898 0.29464 0.45866 0.32809 0.61038
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
48 0.36406 0.70607 0.31471 0.49133 0.35402 0.66325
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
49 0.39419 0.76824 0.33729 0.52736 0.38247 0.71951
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
50 0.42851 0.83718 0.36239 0.56592 0.41511 0.78253
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
51 0.46787 0.91543 0.39000 0.60702 0.45196 0.85316
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
52 0.51311 1.00386 0.42181 0.65401 0.49468 0.93311
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
53 0.56509 1.10418 0.45698 0.70607 0.54329 1.02324
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
54 0.62296 1.21391 0.49300 0.75899 0.59696 1.12105
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
55 0.68759 1.33137 0.53155 0.81363 0.65653 1.22488
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
56 0.75815 1.45577 0.57012 0.86746 0.72035 1.33391
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
57 0.83297 1.58711 0.60786 0.91795 0.78757 1.44815
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
58 0.91627 1.72545 0.64562 0.96763 0.86157 1.56676
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
59 1.00976 1.87420 0.68843 1.02071 0.94405 1.69403
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
60 1.11430 2.04024 0.73883 1.08394 1.03757 1.83678
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
61 1.23080 2.22793 0.80102 1.16325 1.14299 1.99934
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
62 1.36520 2.43998 0.87840 1.26544 1.26544 2.18524
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
63 1.51760 2.67741 0.97353 1.38974 1.40497 2.39462
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
64 1.68724 2.93784 1.08057 1.52862 1.56083 2.62421
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
65 1.87335 3.21456 1.19617 1.67535 1.73224 2.86729
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
66 2.07519 3.50512 1.31615 1.82487 1.91589 3.12050
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
67 2.29201 3.80705 1.43883 1.96953 2.11100 3.37962
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
68 2.52819 4.12480 1.56592 2.11612 2.32278 3.64902
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
69 2.79077 4.47081 1.70761 2.27577 2.55733 3.94098
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
70 3.08860 4.85419 1.87420 2.46481 2.82343 4.26532
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
71 3.42980 5.28689 2.07775 2.70488 3.13085 4.63554
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
72 3.82530 5.77849 2.32791 2.99984 3.49040 5.06103
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
73 4.27493 6.32638 2.62850 3.35194 3.90095 5.53811
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
74 4.77159 6.93068 2.97572 3.75492 4.35708 6.06583
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
75 5.30544 7.58072 3.36491 4.19722 4.84979 6.63341
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
76 5.87269 8.25008 3.78793 4.66976 5.37438 7.21630
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
77 6.46947 8.92720 4.24349 5.16595 5.92694 7.80753
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
78 7.09996 9.61687 4.73909 5.69327 6.51244 8.40997
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
79 7.78482 10.34362 5.29130 6.27100 7.15045 9.04869
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
80 8.54724 11.13283 5.92338 6.92258 7.86386 9.74764
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
81 9.40951 12.00894 6.65582 7.66774 8.67463 10.53068
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
82 10.39222 12.98985 7.50735 8.52252 9.60297 11.41509
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
83 11.49455 14.06239 8.47766 9.51961 10.64779 12.40384
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
84 12.69876 15.19328 9.55943 10.61311 11.79409 13.46162
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
85 13.98063 16.34562 10.74440 11.78935 13.02257 14.56335
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
86 15.32651 17.49176 12.02798 13.04182 14.32180 15.69269
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
87 16.71801 18.68356 13.41230 14.36087 15.68277 16.87966
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
88 18.15089 19.94244 14.90282 15.75618 17.10607 18.14273
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
89 19.64755 21.21198 16.51661 17.23007 18.61283 19.45082
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
90 21.23308 22.51167 18.27329 18.89300 20.23100 20.86977
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
91 22.94951 23.88390 20.22265 20.71856 22.00462 22.41430
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
92 24.87000 25.50217 22.45281 22.78829 24.01446 24.21830
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
93 27.20133 27.62219 25.14857 25.28211 26.46176 26.49647
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
94 30.42888 30.59762 28.73602 28.73602 29.81058 29.68976
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
95 35.49222 35.49222 34.15815 34.15815 34.99881 34.83496
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
96 44.51508 44.51508 43.54279 43.54279 44.15279 44.03236
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
97 62.83141 62.83141 62.19405 62.19405 62.59184 62.51383
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
98 83.33333 83.33333 83.33333 83.33333 83.33333 83.33333
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
99 83.33333 83.33333 83.33333 83.33333 83.33333 83.33333
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
We base the guaranteed maximum cost of insurance charges on the sex distinct
1980 Commissioners Standard Ordinary Ultimate Mortality Smoker/Non-Smoker Table,
age last birthday unless unisex charges apply. If unisex charges apply, a unisex
variation of that table is used. The amounts shown are per $1,000 of Net Amount
at Risk. The guaranteed maximum cost of insurance charge depends on the tobacco
usage class and risk class of each Insured. The charges shown above are
applicable for Insureds in the preferred risk class. The guaranteed maximum cost
of insurance charges for other risk classes are available upon request. Charges
for substandard risk classes are based on a multiple of the table rates. Cost of
insurance charges for joint life cases are determined using a standard insurance
industry method used to derive the applicable charge based on the applicable
cost of insurance charge for both Insureds.
- --------------------------------------------------------------------------------
APPENDIX D
CURRENT MONTHLY COST OF INSURANCE RATES
(per $1,000 of Net Amount at Risk)
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
0 0.08329 0.08329 0.04935 0.04935 0.07820 0.07820
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
1 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
2 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
3 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
4 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
5 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
6 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
7 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
8 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
9 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
10 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
11 0.03181 0.03181 0.02044 0.02044 0.03010 0.03010
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
12 0.03575 0.03575 0.02119 0.02119 0.03356 0.03356
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
13 0.03969 0.03969 0.02195 0.02195 0.03703 0.03703
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
14 0.04363 0.04363 0.02270 0.02270 0.04049 0.04049
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
15 0.04757 0.04757 0.02345 0.02345 0.04395 0.04395
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
16 0.05017 0.08451 0.02350 0.03350 0.04600 0.07701
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
17 0.05034 0.08484 0.02367 0.03367 0.04617 0.07734
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
18 0.05050 0.08517 0.02383 0.03383 0.04634 0.07767
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
19 0.05067 0.08551 0.02400 0.03400 0.04650 0.07801
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 0.05084 0.08584 0.02417 0.03417 0.04667 0.07834
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 0.05100 0.08634 0.02417 0.03417 0.04684 0.07884
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 0.05117 0.08684 0.02417 0.03417 0.04700 0.07934
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 0.05134 0.08734 0.02417 0.03417 0.04717 0.07984
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 0.05150 0.08784 0.02417 0.03417 0.04734 0.08034
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 0.05167 0.08834 0.02417 0.03417 0.04750 0.08084
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 0.05217 0.08917 0.02433 0.03500 0.04800 0.08151
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 0.05267 0.09001 0.02450 0.03583 0.04850 0.08217
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 0.05317 0.09084 0.02467 0.03667 0.04900 0.08284
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 0.05367 0.09168 0.02483 0.03750 0.04950 0.08351
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 0.05417 0.09251 0.02500 0.03833 0.05000 0.08417
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 0.05467 0.09351 0.02600 0.04017 0.05050 0.08534
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 0.05517 0.09451 0.02700 0.04200 0.05100 0.08651
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 0.05567 0.09551 0.02800 0.04384 0.05150 0.08767
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 0.05617 0.09651 0.02900 0.04567 0.05200 0.08884
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 0.05667 0.09751 0.03000 0.04750 0.05250 0.09001
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 0.06017 0.10718 0.03250 0.05350 0.05584 0.09918
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 0.06367 0.11685 0.03500 0.05950 0.05917 0.10835
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 0.06717 0.12652 0.03750 0.06550 0.06250 0.11751
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 0.07067 0.13619 0.04000 0.07151 0.06584 0.12668
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 0.07417 0.14585 0.04250 0.07751 0.06917 0.13585
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 0.08051 0.16619 0.04700 0.08667 0.07534 0.15436
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 0.08684 0.18653 0.05150 0.09584 0.08151 0.17286
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 0.09318 0.20688 0.05600 0.10501 0.08767 0.19137
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 0.09951 0.22722 0.06050 0.11418 0.09384 0.20988
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 0.10584 0.24756 0.06500 0.12335 0.10001 0.22839
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 0.11568 0.27458 0.07101 0.13535 0.10918 0.25323
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 0.12552 0.30159 0.07701 0.14736 0.11835 0.27808
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 0.13535 0.32861 0.08301 0.15936 0.12752 0.30293
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 0.14519 0.35563 0.08901 0.17136 0.13669 0.32777
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 0.15502 0.38265 0.09501 0.18337 0.14585 0.35262
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 0.17036 0.41984 0.10418 0.20087 0.16036 0.38682
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 0.18570 0.45704 0.11335 0.21838 0.17486 0.42101
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 0.20104 0.49424 0.12252 0.23589 0.18937 0.45521
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 0.21638 0.53145 0.13168 0.25340 0.20387 0.48941
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 0.23172 0.56866 0.14085 0.27091 0.21838 0.52361
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 0.25140 0.60837 0.15019 0.28675 0.23656 0.55981
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 0.27107 0.64809 0.15953 0.30259 0.25473 0.59602
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 0.29075 0.68781 0.16886 0.31843 0.27291 0.63223
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 0.31043 0.72753 0.17820 0.33428 0.29108 0.66845
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 0.33011 0.76725 0.18754 0.35012 0.30926 0.70466
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 0.35880 0.81049 0.20404 0.37898 0.33611 0.74589
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 0.38748 0.85373 0.22055 0.40783 0.36297 0.78712
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 0.41617 0.89697 0.23706 0.43669 0.38982 0.82835
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 0.44486 0.94022 0.25356 0.46555 0.41667 0.86959
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 0.47356 0.98347 0.27007 0.49441 0.44353 0.91083
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 0.53712 1.08534 0.30776 0.52861 0.50309 1.00234
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 0.60069 1.18724 0.34545 0.56282 0.56265 1.09386
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 0.66427 1.28916 0.38315 0.59702 0.62222 1.18540
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 0.72786 1.39110 0.42084 0.63123 0.68180 1.27696
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 0.79146 1.49306 0.45854 0.66544 0.74138 1.36854
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 0.92018 1.65457 0.53595 0.76976 0.86241 1.52148
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 1.04893 1.81613 0.61338 0.87410 0.98347 1.67447
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 1.17772 1.97774 0.69081 0.97846 1.10455 1.82750
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 1.30654 2.13940 0.76826 1.08284 1.22567 1.98058
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 1.43539 2.30112 0.84571 1.18724 1.34681 2.13371
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 1.71862 2.55870 1.10171 1.44041 1.62597 2.39070
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 2.00200 2.81641 1.35784 1.69370 1.90529 2.64783
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 2.28555 3.07426 1.61410 1.94712 2.18476 2.90508
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 2.56925 3.33223 1.87049 2.20067 2.46439 3.16247
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 2.85312 3.59034 2.12701 2.45434 2.74418 3.41999
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
81 3.37418 4.14528 2.50727 2.90911 3.24416 3.95978
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
82 3.89578 4.70083 2.88782 3.36428 3.74464 4.50016
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
83 4.41793 5.25699 3.26865 3.81987 4.24562 5.04112
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
84 4.94062 5.81377 3.64977 4.27587 4.74710 5.58266
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
85 5.46386 6.37117 4.03119 4.73229 5.24908 6.12478
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
86 6.12225 7.09296 4.57736 5.16454 5.89049 6.80314
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
87 6.78151 7.81578 5.12412 5.59715 6.53273 7.48240
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
88 7.44164 8.53964 5.67148 6.03014 7.17579 8.16259
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
89 8.10262 9.26454 6.21944 6.46351 7.81967 8.84369
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
90 8.76448 9.99049 6.76800 6.89725 8.46438 9.52572
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
91 9.46270 10.84979 7.39512 7.53637 9.15200 10.35173
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
92 10.16189 11.71055 8.02302 8.17631 9.84056 11.17909
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
93 10.86205 12.57278 8.65171 8.81706 10.53006 12.00781
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
94 11.56318 13.43648 9.28118 9.45863 11.22050 12.83789
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
95 12.26528 14.30165 9.91144 10.10101 11.91189 13.66933
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
96 12.89876 15.04173 10.51321 10.71356 12.54048 14.39014
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
97 13.53303 15.78290 11.11570 11.32686 13.16986 15.11197
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
98 14.16810 16.52514 11.71891 11.94090 13.80001 15.83483
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
99 14.80396 17.26847 12.32284 12.55569 14.43096 16.55873
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
The amounts shown above are current rates per $1,000 of Net Amount at Risk as of
the date of this Prospectus. To determine the current monthly cost of insurance
charge we multiply these rates by the Net Amount at Risk. To that product, we
add the current cost of insurance fee. The charges shown above are applicable
for Insureds in the preferred risk class. The current monthly cost of insurance
charges for other risk classes are available upon request. Cost of insurance
charges for joint life cases are determined using a standard insurance industry
method used to derive the applicable charge based on the applicable cost of
insurance charge for both Insureds. Current monthly cost of insurance rates for
specific proposed joint Insureds are also available on request.
- --------------------------------------------------------------------------------
APPENDIX E
DESCRIPTION OF THE CALCULATION OF CURRENT MONTHLY COST OF INSURANCE CHARGES
We determine the current monthly cost of insurance rate, the currently monthly
cost of insurance fee and any underwriting factor as follows:
1. Current monthly cost of insurance rate: The rate depends on a number
of factors, as follows.
a. For Policies with One Insured: The rates depend on the tobacco
usage class and risk class of the Insured(s), the Age and, where
permissible, gender of the Insured.
b. For Policies with Two Insureds: The rates depend on the
individual current monthly cost of insurance rates for each
Insured.
2. Current monthly cost of insurance fee: The cost of insurance fee is
calculated using a "constant", currently $12.00.
3. Underwriting factor: We reserve the right to multiply the current cost
of insurance rate by an underwriting factor. The underwriting factor
for Policies that are fully underwritten would be one, which results
in no change to the rate.
The following is an example of how we calculate the monthly cost of insurance
deduction. Assume for this example that: (1) the Policy is issued using Option I
with a Specified Amount of $80,000; (2) on the applicable Monthly Processing
Day, the Death Benefit equals the Specified Amount; (3) the then current Account
Value is $10,000; (4) there is one male Insured, who is currently Age 55 (gender
specific cost of insurance rates are used); and (5) the Insured is in the "no
tobacco usage" class and is in the preferred risk class.
(a) We look up the current monthly cost of insurance rate for the
Insured. As of the date of this Prospectus, the current monthly
cost of insurance rate for a 55 year old male nonsmoker Insured
is $.23172 per thousand of Net Amount at Risk.
(b) If applicable, we multiply the rate shown in (a) times the
applicable current underwriting factor.
(c) We multiply (a), or, if applicable, the result of (b), times the
Net Amount at Risk*. The result is 16.16.
(d) We add the current "constant" of $12.00 to (c), resulting in
$28.16.
(e) We look up the contractually guaranteed maximum monthly cost of
insurance charge for the Insured. In this case, we look up the
charge for a 55 year old male in the "no tobacco usage" class and
the preferred risk class. That charge is .68759 per $1,000 Net
Amount at Risk.
(f) We multiply the rate shown in (e) times the Net Amount at Risk*.
The result is $47.95.
(g) We compare the result in (d) and (f). The lower of the two
amounts is the current monthly cost of insurance for the Insured.
In this example, the current cost of insurance is, therefore,
$28.16.
* We determine the Net Amount at Risk for purposes of determining cost of
insurance charges by subtracting the Account Value from the Death Benefit
discounted to the beginning of the Policy Month at the rate of 4% per year. In
this example, the Amount at Risk is $69,739.
APPENDIX F
MAXIMUM ANNUAL ASSESSABLE PREMIUMS PER $1,000 OF SPECIFIED AMOUNT
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Issue No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
0 N/A 15.27 N/A 12.22 N/A 14.67
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
1 N/A 15.48 N/A 12.42 N/A 14.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
2 N/A 15.94 N/A 12.79 N/A 15.33
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
3 N/A 16.44 N/A 13.19 N/A 15.80
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
4 N/A 16.95 N/A 13.60 N/A 16.30
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
5 N/A 17.50 N/A 14.03 N/A 16.82
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
6 N/A 18.07 N/A 14.48 N/A 17.37
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
7 N/A 18.67 N/A 14.95 N/A 17.95
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
8 N/A 19.31 N/A 15.45 N/A 18.56
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
9 N/A 19.98 N/A 15.97 N/A 19.20
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
10 N/A 20.68 N/A 16.51 N/A 19.87
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
11 N/A 21.41 N/A 17.07 N/A 20.56
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
12 N/A 22.17 N/A 17.66 N/A 21.29
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
13 N/A 22.94 N/A 18.26 N/A 22.03
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
14 N/A 23.73 N/A 18.89 N/A 22.78
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
15 N/A 24.53 N/A 19.53 N/A 23.55
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
16 20.48 25.33 17.75 20.19 19.94 24.32
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
17 21.09 26.09 18.33 20.86 20.55 25.06
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
18 21.72 26.85 18.94 21.55 21.17 25.81
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
19 22.36 27.63 19.56 22.26 21.81 26.58
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 23.03 28.44 20.21 23.00 22.47 27.36
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 23.72 29.26 20.87 23.76 23.15 28.18
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 24.44 30.13 21.57 24.55 23.87 29.03
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 25.19 31.03 22.29 25.37 24.61 29.91
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 25.98 31.98 23.03 26.22 25.40 30.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 26.81 32.98 23.81 27.10 26.21 31.82
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 27.68 34.03 24.62 28.02 27.07 32.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 28.60 35.13 25.45 28.96 27.97 33.91
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 29.55 36.28 26.32 29.94 28.91 35.03
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 30.55 37.49 27.21 30.96 29.88 36.20
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 31.59 38.74 28.14 32.01 30.90 37.41
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 32.67 40.05 29.11 33.10 31.96 38.67
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 33.79 41.40 30.11 34.22 33.06 39.98
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 34.96 42.81 31.15 35.39 34.20 41.33
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 36.17 44.26 32.23 36.60 35.39 42.74
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 37.43 45.77 33.34 37.84 36.61 44.19
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 38.73 47.32 34.50 39.14 37.88 45.69
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 40.07 48.93 35.69 40.47 39.20 47.24
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 41.46 50.58 36.92 41.83 40.55 48.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 42.89 52.28 38.18 43.23 41.95 50.48
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 44.38 54.03 39.49 44.67 43.40 52.16
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 45.90 55.83 40.83 46.13 44.89 53.89
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 47.48 57.66 42.20 47.62 46.42 55.66
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 49.10 59.55 43.62 49.15 48.00 57.47
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 50.78 61.48 45.07 50.70 49.63 59.32
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 52.50 63.45 46.57 52.29 51.32 61.21
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 54.28 65.47 48.12 53.93 53.05 63.14
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 56.11 67.54 49.71 55.60 54.83 65.13
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 58.00 69.66 51.35 57.31 56.67 67.17
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 59.96 71.85 53.04 59.08 58.57 69.26
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 61.97 74.09 54.79 60.88 60.53 71.41
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 64.05 76.41 56.58 62.74 62.55 73.61
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 66.19 78.78 58.43 64.64 64.63 75.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Issue No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 68.39 81.21 60.32 66.57 66.77 78.19
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 70.66 83.69 62.26 68.55 68.96 80.55
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 72.99 86.22 64.25 70.56 71.22 82.95
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 75.38 88.80 66.30 72.61 73.54 85.40
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 77.84 91.45 68.40 74.72 75.92 87.90
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 80.38 94.16 70.58 76.90 78.38 90.47
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 83.00 96.97 72.84 79.18 80.91 93.13
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 85.70 99.88 75.20 81.56 83.54 95.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 88.50 102.91 77.66 84.05 86.26 98.74
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 91.40 106.03 80.21 86.65 89.07 101.70
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 94.38 109.25 82.85 89.33 91.96 104.73
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 97.46 112.56 85.55 92.06 94.95 107.83
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 100.63 115.93 88.32 94.84 98.01 110.99
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 103.90 119.40 91.15 97.66 101.17 114.21
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 107.30 122.98 94.07 100.57 104.43 117.53
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 110.85 126.72 97.12 103.62 107.84 120.98
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 114.60 130.67 100.34 106.85 111.43 124.62
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 118.55 134.87 103.76 110.32 115.22 128.48
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 122.74 139.33 107.40 114.06 119.24 132.59
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 127.16 144.06 111.27 118.05 123.48 136.93
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 131.80 149.01 115.36 122.26 127.92 141.47
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 136.63 154.15 119.65 126.66 132.55 146.18
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 141.64 156.53 124.15 131.24 137.35 151.01
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 146.86 156.00 128.86 136.01 142.36 155.77
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 149.50 155.48 133.84 141.01 147.63 154.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 148.62 155.07 139.18 146.34 148.31 154.06
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 147.95 154.86 143.80 146.45 147.44 153.38
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 147.53 154.81 142.69 145.54 146.79 152.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
The Maximum Annual Assessable Premium depends on the Age, tobacco usage class,
risk class and, where permitted, gender of the Insured. The amounts shown above
are applicable for Insureds in the preferred risk class. The Maximum Annual
Assessable Premium for Insureds in a substandard risk class are higher than for
Insureds in a preferred risk class.
- --------------------------------------------------------------------------------
APPENDIX G
HYPOTHETICAL ILLUSTRATION OF ACCELERATED DEATH BENEFIT
The following are hypothetical illustrations of the impact of payments made to
the Insured under the accelerated death benefit provision of the Policy. The
first hypothetical illustration assumes the Insured is a female, age 45 as of
the Policy Date. The second hypothetical illustration assumes the Insured is a
male, age 65 as of the Policy Date. The following other assumptions apply to
both hypothetical illustrations:
1. Premiums of $5,000 per year were paid as of the first day of each
Policy Year, and the premium tax charged on each Premium was
1.75%. DAC tax also was charged in relation to each Premium.
2. Each Policy was issued in the no tobacco usage class and
preferred risk class. Cost of insurance rates differ by gender
and there is no change to the current cost of insurance rates
during the period covered by the example.
3. The Death Benefit Option in effect throughout the life of the
Policy is Option I.
4. The Specified Amount is $100,000 and has remained constant since
the Policy Date.
5. The provision is exercised as of the day preceding the 10th
Policy Anniversary.
6. The investment options in which Account Value was allocated have
grown on a constant basis since the Policy Date at an annualized
rate of 8% per year.
7. There have been no loans or loan repayments and no amounts have
been withdrawn.
8. 50% of the maximum available amount is taken pursuant to the
accelerated death benefit provision.
9. The 12-month interest rate discount used in the calculation of
the benefit assumes interest at 6% per year, compounded yearly.
------------------------- -------------------------
Female Age 45 Male Age 65
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Account Value Before the Accelerated Death Benefit is $62,103 $54,697
Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Cash Value Before the Accelerated Death Benefit is Paid $61,638 $54,197
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Maximum Amount Available For a Loan Before the $55,474 $48,777
Accelerated Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Specified Amount Before the Accelerated Death Benefit $100,000 $100,000
is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Minimum Required Death Benefit Before the Accelerated $155,517 $74,430
Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Guaranteed Minimum Death Benefit Before the $59,267 $52,795
Accelerated Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Death Benefit Before the Accelerated Death Benefit is $155,517 $100,000
Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Maximum Amount Available as the Accelerated Death $77,759 $50,000
Benefit
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Amount of Accelerated Death Benefit $38,879 $25,000
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Amount Paid as the Accelerated Death Benefit $36,679 $23,585
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Account Value After the Accelerated Death Benefit is $46,577 $41,023
Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Cash Value After the Accelerated Death Benefit is Paid $46,229 $40,648
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Maximum Amount Available For a Loan After the $41,606 $36,583
Accelerated Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Specified Amount After the Accelerated Death Benefit $75,000 $75,000
is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Minimum Required Death Benefit After the Accelerated $116,637 $55,822
Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Guaranteed Minimum Death Benefit After the Accelerated $44,450 $39,596
Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
ADDITIONAL INFORMATION: Inquiries will be answered by calling your
representative or by writing to:
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
at
P.O. Box 883
Shelton, Connecticut 06484
or
customerservice@Skandia.com
Issued by: Serviced at:
AMERICAN SKANDIA LIFE AMERICAN SKANDIA LIFE
ASSURANCE CORPORATION ASSURANCE CORPORATION
One Corporate Drive P.O. Box 883
Shelton, Connecticut 06484 Shelton, Connecticut 06484
Telephone: 1-800-752-6342 Telephone: 1-800-752-6342
http://www.AmericanSkandia.com http://www.AmericanSkandia.com
Distributed by:
AMERICAN SKANDIA MARKETING, INCORPORATED
One Corporate Drive
Shelton, Connecticut 06484
Telephone: 203-926-1888
http://www.AmericanSkandia.com
Champion IIB
PART II - OTHER INFORMATION
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following papers and
documents:
The facing sheet.
The prospectus consisting of 68 pages.
Representations and Undertakings.
The signatures.
Written consents of the following persons:
Legal Counsel TO BE FILED BY AMENDMENT
Ernst & Young LLP TO BE FILED BY AMENDMENT
Corporate Actuary TO BE FILED BY AMENDMENT
The following exhibits which correspond to those required by paragraph
A of the instructions for exhibits to Form N-8B-2:
1. A. (1) Resolution of the Board of Directors of the Company are incorporated
by reference to Registration Statement No. 333-38119 filed via EDGAR October 17, 1997.
(2) Not applicable.
(3) Distributing contracts:
(a) Principal Underwriting Agreement incorporated by reference
to Registration Statement No. 333-38119 filed via EDGAR October 17, 1997.
(b) Form of Revised Dealer Agreement being filed via EDGAR
with Post-Effective Amendment No. 7 to Registration
Statement No. 33-87010 on April 24, 1998.
(c) Not applicable.
(4) Not applicable.
(5) Form of Flexible Premium Variable Life Insurance Policy
(a) Single Life Version FILED HEREWITH
(b) Last Survivor Version FILED HEREWITH
(c) Endorsement-Accelerated Death Benefit FILED HEREWITH
(d) Endorsement-Guaranteed Continuation Provision
FILED HEREWITH
(e) Endorsement-Medically-Related Waiver FILED HEREWITH
(6) Articles of Incorporation and By-laws of American Skandia Life Assurance Corporation, incorporated
by reference to Post-Effective Amendment No. 6 to Registration Statement No. 33-87010, filed VIA
EDGAR on March 2, 1998.
(7) Not applicable.
(8) Not applicable.
(9) Other material contracts. Not applicable
(10) Form of Application for Flexible Premium
Variable Life Insurance Policy. TO BE FILED BY AMENDMENT
(11) Memorandum describing transfer and redemption procedures. FILED HEREWITH
2. Opinion and Consent of Counsel. TO BE FILED BY AMENDMENT
3. No financial statements are to be omitted from the prospectus pursuant to instruction 1(b) or 1(c) of the
instructions as to the prospectus.
4. Not applicable.
5. Financial Data Schedules. TO BE FILED BY AMENDMENT
6. Not applicable.
7. Opinion and Consent of certifying actuary. TO BE FILED BY AMENDMENT
8. Opinion and Consent of Ernst & Young LLP TO BE FILED BY AMENDMENT
9. Powers of Attorney are incorporated by reference to Registration Statement No.
333-38119 filed via EDGAR October 17, 1997.
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
RULE 484 UNDERTAKING ON INDEMNIFICATION
Article XIII of the By-laws of American Skandia Life Assurance Corporation, a
Connecticut corporation, (the "Corporation") provides for indemnification of its
officers, directors, and employees as follows:
SECTION 1. Proceedings Other Than by or in the Right of the Corporation.
------------------------------------------------------------
The Corporation shall indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigate
(other than an action by or in the right of the Corporation) by reason of the
fact that he, or the person whose representative he is, is or was a shareholder,
director, officer, employee or agent of the Corporation, or is or was serving
solely at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines,
penalties, and amounts paid in settlement actually and reasonably incurred by
him in connection with such action, suit or proceeding if the person is
successful on the merits in the defense of the proceeding or as provided in
Section 3 hereof, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the corporation, and
with respect to any criminal action or proceeding, the person had no reasonable
cause to believe his conduct was unlawful or if upon application to the court as
provided in Section 5 hereof, the court shall have determined that in view of
all the circumstances such person is fairly and reasonably entitled to be
indemnified, and then for such amount as the court shall determine; except that,
in connection with an alleged claim based upon his purchase or sale of
securities of the Corporation or of another enterprise, which he serves or
served at the request of the Corporation, the Corporation shall only indemnify
such person after the court shall have determined, on application as provided in
Section 5 hereof, that in view of all the circumstances such person is fairly
and reasonably entitled to be indemnified, and then for such amount as the court
shall determine. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendre or its
equivalent, shall not, of itself, create a presumption that the person did not
act in good faith and in a manner which he reasonably believed to be in or not
opposed to the best interests of the Corporation or of the participants and
beneficiaries of such employee benefit plan or trust and consistent with the
provisions of such employee benefit plan or trust, or, with respect to any
criminal action or proceeding, that he had reasonable cause to believe that his
conduct was unlawful.
SECTION 2. Proceedings by or in the Right of the Corporation.
-------------------------------------------------
The Corporation shall indemnify any person who was or is a party or threatened
to be made a party to any threatened, pending or completed action, suit or
proceeding, by or in the right of the Corporation, to procure a judgment in its
favor by reason of the fact that he, or the person whose legal representative he
is, is or was a shareholder, director, officer, employee or agent of the
Corporation, or is or was serving solely at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or enterprise, against expenses (including attorney fees)
actually and reasonably incurred by him in connection with such proceeding in
relation to matters as to which such person, or the person whose legal
representative his is, is finally adjudged not to have breached his duty to the
Corporation, or where the court, on application as provided in Section 6 hereof,
shall have determined that in view or all the circumstances such person is
fairly and reasonably entitled to be indemnified, and then for such amount as
the court shall determine. The Corporation shall not so indemnify any such
person for amounts paid to the Corporation, to a plaintiff or to counsel for a
plaintiff in settling or otherwise disposing of a proceeding, with or without
court approval; or for expenses incurred in defending a proceeding which is
settled or otherwise disposed of without court approval.
SECTION 3. Determination of Right of Indemnification.
-----------------------------------------
The conclusion provided for in Section 1 hereof may be reached by any of the
following: (1) The Board of Directors of the Corporation by a consent in writing
signed by a majority of those directors who were not parties to such proceeding;
(2) independent legal counsel selected by a consent in writing signed by a
majority of those directors who were not parties to such proceeding; (3) in the
case of any employee or agent who is not an officer or director of the
Corporation, the Corporation's general counsel; or (4) the shareholders of the
Corporation by the affirmative vote of at least a majority of the voting power
of shares not owned by parties to such proceeding, represented at an annual or
special meeting of shareholders, duly called with notice of such purpose stated.
Such person shall also be entitled to apply to a court for such conclusion, upon
application as provided in Section 5 hereof, even though the conclusion reached
by any of the foregoing shall have been adverse to him or to the person whose
legal representative he is.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATION AND UNDERTAKING
The Registrant and the Company hereby make the following representations and
undertakings:
(a) This filing is made pursuant to Rules 6c-3 and 6e-3(T) under the Investment
Company Act of 1940 (the "Act"). The Registrant and the Company elect to be
governed by Rule 6e-3(T)(b)(13)(i)(A) under the Act with respect to the Policies
described in the prospectus. The Policies are designed in such a way as to
qualify for the exemptive relief from various provisions of the Act afforded by
Rule 6e-3(T).
(b) The Company is relying on Paragraph (b)(13)(iii)(F) of Rule 6e-3(T) for the
deduction of the mortality and expense risk charges ("risk charges")assumed by
the Company under the Policies. The Company represents that the risk charges are
reasonable in relation to all of the risks assumed by the issuer under the
Policies. (Paragraph (b)(13)(iii)(F)(2)(ii)). Actuarial memoranda demonstrating
the reasonableness of these charges are maintained by the Company, and will be
made available to the Securities and Exchange Commission (the "Commission") on
request. (Paragraph (b)(13)(iii)(F)(3).
(c) The Company has concluded that there is a reasonable likelihood that the
distribution financing arrangement of the separate account will benefit the
separate account and the contractholders and will keep and make available to the
Commission on request a memorandum setting forth the basis for this
representation. (Paragraph (b)(13)(iii)(F)(4)(ii)(A).
(d) The Company represents that the separate account will invest only in
management investment companies which have undertaken to have a board of
directors, a majority of whom are not interested persons of the company,
formulate and approve any plan under Rule 12b-1 to finance distribution
expenses. (Paragraph (b)(13)(iii)(F)(4)(ii)(B)(2).
(e) Pursuant to Rule 26(e) under the Act, the Company hereby represents that the
fees and charges deducted under the Policy described in the Prospectus, in the
aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the Company.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has
duly caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized, and its seal to be hereunto affixed and
attested, all in the City of Shelton, State of Connecticut, on 2nd day of
February, 2000.
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
SEPARATE ACCOUNT F
(Registrant)
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(Depositor)
By:/s/Lincoln R. Collins Attest: /s/Kathleen A. Chapman
Lincoln R. Collins, Kathleen A. Chapman,
Executive Vice President Assistant Corporate Secretary
and Chief Operating Officer
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the date indicated.
Signature Title Date
(Principal Executive Officer)
Jan R. Carendi* Chief Executive Officer, 02/2/2000
Jan R. Carendi Chairman of the Board and Director
(Principal Financial Officer)
/s/Thomas M. Mazzaferro Executive Vice President and 02/2/2000
Thomas M. Mazzaferro Chief Financial Officer
(Principal Accounting Officer)
/s/David R. Monroe Treasurer, Vice President 02/2/2000
David R. Monroe and Controller
(Board of Directors)
Jan. R. Carendi* Gordon C. Boronow* Malcolm M. Campbell*
Jan. R. Carendi Gordon C. Boronow Malcolm M. Campbell
Henrik Danckwardt* Amanda C. Sutyak* Wade A. Dokken*
Henrik Danckwardt Amanda C. Sutyak Wade A. Dokken
Thomas M. Mazzaferro* Gunnar Moberg* Bayard F. Tracy*
Thomas M. Mazzaferro Gunnar Moberg Bayard F. Tracy
Anders Soderstrom* C. Ake Svensson* Lincoln R. Collins*
Anders Soderstrom C. Ake Svensson Lincoln R. Collins
Nancy F. Brunetti*
Nancy F. Brunetti
*By: /s/Kathleen A. Chapman
Kathleen A. Chapman
*Pursuant to Powers of Attorney filed with Initial
Registration Statement No. 333-38119.