Registration No. 333-38119 March 4, 1998
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pre-Effective Amendment No. 1 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: Modified Single
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.
The Registrant hereby amends this Registration Statement on such date as may be
necessary to delay its effective date until the Registrant shall file a further
amendment which specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the Registration Statement shall become effective on such
date as the Commission, action pursuant to said Section 8(a), may determine.
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 Premium
Invested? Variable Investment Options
17. Partial Withdrawals; Surrenders; Reinstatement;
Account Value and Cash Value; Buying a Policy;
Pricing Transactions
18. Account 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. Appendix C - 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. Appendix D
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SUBJECT TO COMPLETION
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Information contained herein is subject to completion or amendment. A
registration statement relating to these securities has been filed with the
Securities and Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective. This prospectus shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any State in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state.
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This Prospectus describes a modified single 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. This policy may be offered as individual
coverage or as 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. This Prospectus is made up of the following general
sections: Cover Page, Table of Contents, Definitions, Description of the
Offering, Miscellaneous Provisions and Additional Details. On this cover page
and in the Description of the Offering section, we use a "question and answer"
format to assist you in understanding this offering.
In summary, what is American Skandia offering to me? We are offering a
type of cash value life insurance coverage. This life insurance coverage is
called a "modified single premium variable life insurance policy." These
technical terms can be explained, as follows:
(1) This coverage is life insurance because a death benefit becomes
payable to a beneficiary upon the death of the person insured. 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 loans from us using the value
of the policy as collateral and the right to take withdrawals.
(2) This coverage is called modified single premium because we do not
accept any premium other than the first unless we know about the additional
premium during the underwriting period or an additional amount is required to
keep the policy from being cancelled.
(3) This coverage is variable because you can allocate all or part of
your premium to variable investment options that invest in underlying mutual
funds. The performance of these investment options is not guaranteed. You bear
the investment risk if you allocate funds to these investment options because
the benefits that depend on the investment performance of these investment
options can decrease or increase.
(4) This coverage allows you to allocate all or part of your premium to
a fixed option to which we credit interest. The return on this option is
guaranteed. We bear the investment risk if you allocate funds to this option.
(5) We believe this policy will be treated as a "modified endowment
contract" under the Internal Revenue Code (the "Code"). In general, the tax
treatment of a modified endowment contract's death benefit is similar to that of
death benefits under life insurance policies, while the tax treatment of the
contract's living benefits are similar to those of living benefits under
deferred annuities. This means that in many circumstances the beneficiary owes
no Federal income tax on the death proceeds. However, most distributions from
such a policy while the insured is alive, including loans, withdrawals and
surrender, are taxable to the owner, like distributions from a deferred annuity
before annuity payments begin. This means that such distributions are deemed to
come first from any gain in the policy. Any gain is treated as ordinary income
and may be subject to a 10% tax penalty if taken before your age 59 1/2.
Information relating to the tax treatment of life insurance contracts which are
not modified endowment contracts appears in the section entitled "Additional Tax
Considerations".
Is there Federal insurance for these policies? Premiums for these policies are
not deposits or obligations of, or guaranteed or endorsed by, any bank or bank
subsidiary. Neither premiums nor any payments or benefits pursuant to these
policies are insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency.
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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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SPVLI-PROS (5/98) CALL 1-800-752-6342 FOR FURTHER INFORMATION Prospectus Dated:
May 1, 1998
What are the investment options? The premium is allocated to your
choice of investment options. The variable investment options are segments of
American Skandia Life Assurance Corporation Separate Account F ("Account F").
Each segment in Account F invests exclusively in an underlying mutual fund or
one portfolio of an underlying mutual fund. As of the date of this Prospectus,
the following underlying mutual funds or portfolios of the following underlying
mutual funds are being offered: American Skandia Trust, The Alger American Fund,
Montgomery Variable Series and Life and Annuity Trust. The available portfolios
of these underlying funds and the applicable investment management fees and
operating expenses are listed on page [ ]. We also offer a fixed option that
credits a fixed rate of interest. Our obligations based on allocations to the
fixed option are supported by our general account, as are any obligations such
as the portion of the death benefit in excess of the policy's account value or
any fixed settlement options. The investment manager to American Skandia Trust,
as of the date of this Prospectus, is our affiliate, American Skandia Investment
Services, Incorporated.
TABLE OF CONTENTS
DEFINITIONS
DESCRIPTION OF THE OFFERING
Purchasers
The Insurance Company
Benefits at the Insured's Death
Account Value and Cash Value
Cash Value Credits
Costs
Buying a Policy
Variable Investment Options
Transfers and Allocation Services
Loans
Partial Withdrawals
Surrenders
Accelerated Death Benefit
Medically-Related Waiver
Risks
Other Rights
The Separate Account
Taxes
Available Information
MISCELLANEOUS PROVISIONS AND ADDITIONAL DETAILS
Providing Services to You
Designations
Net Investment Factor
Allocation Programs
Limitations on Transfers
Death During the Grace Period
Reinstatement
Maturity
Pricing Transactions
Delaying Transactions
Voting
Transfers, Assignments Pledges
Reports
Incontestability
Suicide
Misstatement
Backdating
Policy Loans on Exchanges
Resolving Material Conflicts
Modification of the Separate Account
Entire Contract
Additional Tax Considerations
Safekeeping of the Assets
Regulation
Legal Matters
Legal Proceedings
Experts
Distribution of this Offering
Illustrations
Executive Officers and Directors
Financial Statements
TABLE OF CONTENTS (continued)
APPENDIX A - HYPOTHETICAL ILLUSTRATION OF DEATH BENEFITS, ACCOUNT
VALUES AND CASH VALUES
APPENDIX B - HYPOTHETICAL ILLUSTRATION OF ACCELERATED DEATH BENEFIT
APPENDIX C - NET SINGLE PREMIUM FACTORS FOR REQUIRED DEATH BENEFIT CALCULATION
APPENDIX D - GUARANTEED MAXIMUM COST OF INSURANCE RATES
APPENDIX E - EXECUTIVE OFFICERS AND DIRECTORS
APPENDIX F - FINANCIAL STATEMENTS FOR AMERICAN SKANDIA LIFE
ASSURANCE CORPORATION AND AMERICAN SKANDIA LIFE ASSURANCE
CORPORATION SEPARATE ACCOUNT F
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 each allocation to a 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, contingent deferred tax 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.
APPLICATION is the form or combination of forms we require you to submit when
you are seeking a Policy. Where there are two Insureds, Application means the
form or combination of forms required for both Insureds.
BENEFICIARY is a person or entity you designate on whose behalf any Death
Proceeds are payable. Unless otherwise specified, Beneficiary refers to all
persons or entities so designated.
CASH VALUE is the Account Value less any contingent deferred sales charge,
contingent deferred tax charge 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
Cash Value trigger.
CODE is the Internal Revenue Code of 1986, as amended from time to time.
DEATH BENEFIT is the amount payable as a result of an Insured's death before any
applicable reduction for any Debt 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 is the amount payable as a result of the Insured's death after
any applicable reduction for Debt and after addition of any interest due
pursuant to law.
DEBT is the total of any outstanding loan and loan interest.
FACE AMOUNT is the Death Benefit as of the Policy Date.
FIXED ALLOCATION is an allocation of Account Value to our general account that
is to be credited a fixed rate of interest.
GROWTH is a portion of the Account Value. It equals (a) less (b) less (c),
where: (a) is the total current Account Value; (b) is any Debt; and (c) is the
Premium less any partial withdrawals treated as a withdrawal of Premium.
GUARANTEED MINIMUM DEATH BENEFIT is the minimum amount we guarantee is due as a
result of the Insured's death, prior to any reduction for Debt, even if it is
higher than the Required Death Benefit.
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 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.
MATURITY DATE is the Policy Anniversary immediately following the Insured's 95th
birthday, or if there are two Insureds, immediately following the 95th birthday
of the younger Insured, or what would have been the younger Insured's 95th
birthday if the younger Insured predeceases the older Insured.
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 Period.
NET SINGLE PREMIUM is the amount that would be required, according to the Code
and the regulations based on the Code, to fund: (a) the Policy's Required Death
Benefit, assuming the current Required Death Benefit would not change; and (b)
future benefits and charges using assumptions about: (i) growth of Account Value
so that it would equal the current Required Death Benefit on the Maturity Date;
and (ii) charges, as provided pursuant to the Code. The Net Single Premium
depends on the attained age, gender (where permitted) and risk class of the
Insured. The Net Single Premium changes as the Insured ages. The applicable Net
Single Premiums would change if required under the Code or regulations based on
the Code.
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 yearly anniversary of the Policy Date.
POLICY DATE is the effective date of your Policy.
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 the cash 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 Issue Date, as shown in the Policy, and any additional consideration
we choose to accept. Acceptance must occur before completion of the underwriting
for the Policy.
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.
SEPARATE ACCOUNT is our separate account to which we allocate assets in relation
to our obligations for benefits based on the variable investment options.
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.
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 description below is divided into the following sections:
Purchasers, The Insurance Company, Benefits at the Insured's Death, Account
Value and Cash Value, Cash Value Credits, Costs, Buying a Policy, Variable
Investment Options, Transfers and Allocation Services, Loans, Partial
Withdrawals, Surrenders, Accelerated Death Benefit, Medically-Related Waiver,
Risks, Other Rights, The Separate Account, Taxes and Available Information. A
Description of Miscellaneous Provisions and Additional Details about American
Skandia follows this description.
Purchasers
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 addressing a range of estate planning needs.
Because of estate taxes, purchasers may want to consider placing this type of
coverage in an applicable trust or transferring ownership of the Policy in an
effort to remove the asset from their estate. 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 evaluate carefully
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.
The Insurance Company
Who is American Skandia? American Skandia Life Assurance Corporation is
organized as a stock insurance company domiciled in Connecticut. 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 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 undertake certain
administrative functions for us. We also may engage various independent firms to
undertake various administrative functions for us. Our 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.
Benefits at the Insured's Death
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.
What are the Death Proceeds? 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 from the Death
Benefit. We then add any interest amount required by law.
What is the Death Benefit? The Death Benefit is the higher of the
Required Death Benefit and the Guaranteed Minimum Death Benefit as of the date
we receive due proof of death. The 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 Guaranteed
Minimum Death Benefit, which is discussed below in response to the question,
"What is the Guaranteed Minimum Death Benefit?," is the minimum amount payable
at the Insured's death, before reduction for any Debt, irrespective of the
Required Death Benefit. The Required Death Benefit is determined by treating the
Account Value as if it were a net single premium. We determine the Required
Death Benefit by dividing the Account Value by factors that are determined as of
the Policy Date. These factors vary by the attained Age, gender (where
permitted) and risk class of the Insured. See Appendix C for a complete
description of the applicable factors we use to determine the Required Death
Benefit. The following are representative examples of the factors on the Policy
Date for different Ages, genders and risk classes, as well as the amount of the
Required Death Benefit if the Account Value were $100,000.
Female, Age 55, not a tobacco user: The factor is .400884. $100,000
divided by .400884 results in a Required Death Benefit of $249,449.
Male, Age 60, a tobacco user: The factor is .586632. $100,000 divided
by .586632 results in a Required Death Benefit of $170,465.
Female, Age 70, a tobacco user: The factor is .637176. $100,000 divided
by .637176 results in a Required Death Benefit of $156,943.
Male, Age 75, not a tobacco user: The factor is .736865. $100,000
divided by .736865 results in a Required Death Benefit of $135,710.
As noted above, the factors depend on the Insured's gender (where permitted),
risk class and attained Age. The gender and risk class of the Insured does not
change, so the only element that changes the factor after the Policy Date is the
aging of the Insured. The following example may help you understand the effect
of aging on the Required Death Benefit.
The Insured is a woman, Age 64, for whom coverage was issued at her Age 60 in
the "not a tobacco user" risk class. On the Valuation Day before the Policy
Anniversary following the Insured's 65th birthday, the Account Value is
$100,000. The Required Death Benefit as required under the Code for this
Insured's age, gender, risk class and Account Value is $100,000 divided by the
applicable factor of .521878, which results in a Required Death Benefit of
$191,616. For the sake of this example, assume that the next Valuation Day,
which is the Policy Anniversary after the Insured's 65th birthday (the day the
Insured turns Age 65 for purposes of the Policy), the Account Value remains
$100,000. At the higher Age of 65, the Required Death Benefit on the Policy
Anniversary is $100,000 divided by the applicable factor of .536544, which
results in a Required Death Benefit of $186,378.
What else can affect the Required Death Benefit? The Required Death
Benefit changes as the Account Value changes. This is because the Required Death
Benefit is calculated based on the Account Value. A few examples may help show
what this means. Assume for purposes of these examples that the Insured is a
woman, Age 65, for whom coverage was issued at her Age 60 in the "not a tobacco
user" risk class.
(a) On a particular Monthly Processing Date, the Account Value of the
Policy is $100,000. The Required Death Benefit as of that Valuation Day is
$100,000 divided by the then applicable factor of .536544 or $186,378. As of the
next Valuation Day, assume the Account Value has grown to $100,010. The Required
Death Benefit is $100,010 divided by the same factor of .536544, or $186,396.
(b) On a particular Monthly Processing Date, the Account Value of the
Policy is $100,000. The Required Death Benefit as of that Valuation Day is
$100,000 divided by the then applicable factor of .536544, or $186,378. As of
the next Valuation Day, assume the Account Value has decreased to $99,990. The
Required Death Benefit is $99,990 divided by the same factor of .536544, or
$186,359.
(c) On a particular Monthly Processing Date, the Account Value of the
Policy before any partial withdrawal is $100,000. The Required Death Benefit as
of that Valuation Day is $100,000 divided by the then applicable factor of
.536544, or $186,378. On that same day, assume $20,000 is taken as a partial
withdrawal. Immediately after the partial withdrawal, the Required Death Benefit
is $80,000 divided by the same factor of .536544, or $149,102.
What is the Face Amount? The Face Amount is the Required Death Benefit
on the Policy Date.
What is the Guaranteed Minimum Death Benefit? We use the Guaranteed
Minimum Death Benefit in determining the Death Proceeds if the
Guaranteed Minimum Death Benefit is higher than the Required Death
Benefit. The Guaranteed Minimum Death Benefit is determined as follows:
(a) On the Policy Date, the Guaranteed Minimum Death Benefit equals the
Premium.
(b) After the Policy Date and until the first Policy Anniversary, the
Guaranteed Minimum Death Benefit is the Premium less every "reduction due to a
withdrawal," which is defined below.
(c) After the first Policy Anniversary but before the "target date,"
(the Policy Anniversary that the Insured turns Age 75), the Guaranteed Minimum
Death Benefit is the higher of (1) or (2), where: (1) is the Premium less every
"reduction due to a withdrawal"; and (2) is the highest "Anniversary Value."
"Anniversary Value" is the Account Value on any Policy Anniversary less every
reduction due to a withdrawal since that Policy Anniversary.
(d) On or after the "target date," the Guaranteed Minimum Death Benefit
is the higher of (1) or (2), where: (1) is the Premium less every "reduction due
to a withdrawal"; and (2) is the highest Anniversary Value, as defined above in
(c), as of the "target date," less every "reduction due to a withdrawal" after
the "target date."
(e) Notwithstanding items (a) through (d) above, if the Insured is Age
75 or older on the Policy Date, the Guaranteed Minimum Death Benefit is the
Premium less every "reduction due to a withdrawal."
(f) If the Policy is issued for two (2) Insureds, the Guaranteed
Minimum Death Benefit 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.
A "reduction due to a withdrawal" is a proportional reduction. It equals the
ratio by which the Account Value is reduced by a partial withdrawal or a payment
under the Accelerated Death Benefit provision, described below in the section of
the same name, multiplied by the Guaranteed Minimum Death Benefit as of the
effective date of such partial withdrawal or payment. For example, if the
Guaranteed Minimum Death Benefit before a partial withdrawal is $100,000 and the
Account Value is $120,000, the Guaranteed Minimum Death Benefit after a $60,000
partial withdrawal (a 50% reduction in the Account Value) would be $50,000 (a
50% reduction in the Guaranteed Minimum Death Benefit).
How are Death Proceeds 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
from one of the settlement options that 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
What is the Account Value? The Account Value is the value of a Policy
before any deduction for any contingent deferred sales charge, contingent
deferred tax charge or Debt. It is the total of the Account Value maintained in
the investment options you choose to utilize plus any Account Value in the Loan
Account. You may allocate Account Value to variable investment options, which
are all Sub-accounts of the Separate Account, or to Fixed Allocations. Account
Value is maintained in the Loan Account as collateral for outstanding loans.
How does American Skandia determine the Account Value in the 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.
How does American Skandia determine the Account Value for 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 each 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.
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.
How does American Skandia determine the Account Value in the Loan
Account? The rate we credit to Account Value in the Loan Account depends on
whether that Account Value is serving as collateral for "preferred loans" or for
"standard loans," which are discussed below in response to the question "What
are a `preferred loan' and a `standard loan'?" We credit interest at the rate of
6.0% per year, compounded yearly, to Account Value in the Loan Account serving
as collateral for "preferred loans." We credit interest at the rate of 4.0% per
year, compounded yearly, to Account Value in the Loan Account serving as
collateral for "standard loans."
What is the Cash Value? The Cash Value is the total Account Value less
any contingent deferred sales charge, contingent deferred tax charge and Debt.
Do I have to maintain a minimum Cash Value? The answer depends on
whether there is any Debt. You do not have to maintain a minimum Cash Value if
there is no Debt, except if you take a partial withdrawal. We will inform you
if, on a Monthly Processing Date, your Cash Value equals or is less than zero.
Such Monthly Processing Date will be the beginning of the grace period. At that
time we will also inform you of the amount you can pay if you wish to
reestablish any Cash Value. No payment is required. The Policy remains in force
with the Death Benefit equal to the Guaranteed Minimum Death Benefit as of the
beginning of the grace period.
If there is any Debt, there must always be enough Cash Value so that after we
deduct any charges the Cash Value is more than zero. If the Cash Value would be
zero or less after we deduct charges, we send you a notice giving you a 61-day
"grace period" to send us a required amount. If this amount is not paid by the
end of the grace period, the Policy ends without value.
Cash Value Credits
What are Cash Value Credits, and how do I get them? Cash Value Credits
are amounts we credit to your Account Value, where permitted by law. We provide
these amounts if your total Cash Value on a Policy Anniversary equals or exceeds
a Cash Value trigger. We determine if your Policy is eligible for a Cash Value
Credit on each Policy Anniversary. Eligibility for Cash Value Credits may change
from year to year. Whether your Cash Value meets or exceeds the trigger depends
on investment performance of the investment options, partial withdrawals, Debt
and whether you pay back any loans or loan interest.
What is the Cash Value trigger? The Cash Value trigger is 200% of the
Premium. That means that, even if your Account Value is 200% of the Premium, you
may not have reached the trigger amount, since the Cash Value may be less than
the Account Value due to the contingent deferred sales charge, the contingent
deferred tax charge and any Debt.
How much is added to my Account Value? The Cash Value Credit, if any,
added to your Account Value equals 0.25% of the Cash Value on the applicable
Policy Anniversary. The following examples may help you understand this.
(a) Assume that the Premium paid for a Policy is $100,000. Assume that
on the 10th Policy Anniversary the Cash Value is $202,000. The
Cash Value trigger is 200% of $100,000, which is $200,000. The
amount to be added to the Account Value is 0.25% of $202,000,
which is $505.
(b) Assume that, for the same Policy, the Cash Value on the 11th
Policy Anniversary is $195,000, due to a combination of investment
performance and a loan of $25,000 in the middle of the Policy
Year. The Cash Value trigger for this Policy, as noted above, is
$200,000. Therefore, no Cash Value Credit is provided on the 11th
Policy Anniversary.
(c) Assume that, for the same Policy, the Cash Value on the 12th
Policy Anniversary is $240,000, due to a combination of investment
performance and repayment of the loan and loan interest. As noted
above, the Cash Value trigger is $200,000. The amount to be added
is 0.25% of $240,000, which is $600.
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
What kinds of charges are there for this Policy? The Policy has four
(4) different kinds of charges: (1) 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; (2) charges we deduct monthly from
the Account Value and which are due in all Policy Years; (3) charges that we
deduct monthly from the Account Value only for the first ten Policy Years; and
(4) "contingent" charges, which are those charges that you only pay in certain
specified circumstances.
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 each Valuation Period. The
mortality and expense risk charge is 0.90% per year. The charge for the
administrative expenses connected with operating the Separate Account is 0.25%
per year. We assess these charges each Valuation Period against the average
daily total 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.
What monthly charge applies in all Policy Years? We always deduct the
cost of insurance charge. We take this charge from your Account Value, in
advance, each Monthly Processing Day. The charge is a percentage of your then
current Account Value.
How much is the cost of insurance charge? The cost of insurance charge
is not a constant dollar amount, in part because it is a percentage of your
Account Value. The percentage of your Account Value that we charge differs
depending on four factors: (1) whether we issue the Policy for only one Insured
or for two; (2) the Age(s) of the Insured(s) as of the Policy Date; (3) the
gender of the Insured(s), where permitted; and (4) the risk class(es) of the
Insured(s). We reserve the right to also have the percentage decrease based on
the size of the Premium.
The actual charge is a monthly charge. The equivalent yearly cost of insurance
charges as of the Policy Date are shown below for a Policy issued for one
Insured. The charges will be different if we are required by law to charge the
same amount for males and females. For purposes of this and the succeeding
table, "Age" is as of the Policy Date.
---------------- ------------------------- ----------------- -----------------
Gender Tobacco Usage Class Age 20-69 Age 70-90
---------------- ------------------------- ----------------- -----------------
---------------- ------------------------- ----------------- -----------------
Male No Tobacco Use 0.55% 0.90%
---------------- ------------------------- ----------------- -----------------
---------------- ------------------------- ----------------- -----------------
Female No Tobacco Use 0.40% 0.75%
---------------- ------------------------- ----------------- -----------------
---------------- ------------------------- ----------------- -----------------
Male Tobacco User 0.90% 1.25%
---------------- ------------------------- ----------------- -----------------
---------------- ------------------------- ----------------- -----------------
Female Tobacco User 0.75% 1.10%
---------------- ------------------------- ----------------- -----------------
If the Policy is issued for two Insureds, the yearly percentages of the Account
Value we deduct for the cost of insurance will depend on the risk classes of the
Insureds. The following are examples of applicable charges as of the Policy
Date. The charges will be different if we are required by law to charge the same
amount for males and females.
------------------------ -------------------------- ------------------------- ------------------------ ------------
Gender (1st Insured) Tobacco Usage Class Gender (2nd Insured) Tobacco Usage Class Charge
------------------------ -------------------------- ------------------------- ------------------------ ------------
------------------------ -------------------------- ------------------------- ------------------------ ------------
Male No Tobacco Use Female No Tobacco Use 0.25%
------------------------ -------------------------- ------------------------- ------------------------ ------------
------------------------ -------------------------- ------------------------- ------------------------ ------------
Male Tobacco User Female Tobacco User 0.35%
------------------------ -------------------------- ------------------------- ------------------------ ------------
------------------------ -------------------------- ------------------------- ------------------------ ------------
Male No Tobacco Use Female Tobacco User 0.30%
------------------------ -------------------------- ------------------------- ------------------------ ------------
------------------------ -------------------------- ------------------------- ------------------------ ------------
Male Tobacco User Female No Tobacco Use 0.30%
------------------------ -------------------------- ------------------------- ------------------------ ------------
Is there a maximum cost of insurance charge? We monitor the cost of
insurance charge so that it never exceeds a guaranteed maximum charge. We
determine that guaranteed maximum as if we were charging you an increasing
amount based on the Insured's attained Age and were assessing that charge on the
difference between the Required Death Benefit and the Account Value. If the
percentages we otherwise would charge would exceed the guaranteed maximum, we
only charge the guaranteed maximum.
The guaranteed maximum cost of insurance charge depends on the risk class of the
Insured(s). Also, if required by law, unisex charges will apply. We base the
guaranteed maximum charges on the sex distinct 1980 Commissioners Standard
Ordinary Ultimate Mortality Table, age last birthday unless unisex rates apply.
See Appendix D for a description of the maximum cost of insurance charges for
different age gender and risk classes.
What monthly charges apply only in the first 10 Policy Years? We deduct
the tax charge and the sales charge only in the first 10 Policy Years.
How much is the sales charge and when do I pay it? We deduct the sales
charge during the first 10 Policy Years. It is a percentage of your Account
Value and is the equivalent of 0.40% per year. We deduct this charge monthly in
advance. We take the charge from your Account Value each Monthly Processing Day.
The charge is a percentage of your then current Account Value. If you surrender
your Policy or take a partial withdrawal, we may deduct a contingent deferred
sales charge, as described below in response to the question "How much is the
contingent deferred sales charge and when must I pay it?"
There are certain circumstances which may result in reduction or elimination of
the sales charge. These are exactly the same circumstances that may result in
reduction or elimination of the contingent deferred sales charge, as described
below in response to the question "How much is the contingent deferred sales
charge and when must I pay it?"
How much is the tax charge and when do I pay it? We deduct the tax
charge during the first 10 Policy Years. It is a percentage of your Account
Value and is the equivalent of 0.25% per year. We deduct this charge monthly in
advance. We take the charge from your Account Value each Monthly Processing Day.
The charge is a percentage of your then current Account Value. If you surrender
your Policy or take a partial withdrawal, we deduct a contingent deferred tax
charge, as described below in response to the question "How much is the
contingent deferred tax charge and when must I pay it?"
What are the contingent charges? The contingent charges are: (1) the
contingent deferred sales charge; (2) the contingent deferred tax charge; (3)
the maintenance fee; and (4) the transfer fee.
How much is the contingent deferred sales charge and when must I pay
it? The contingent deferred sales charge is a percentage of any amount being
surrendered or withdrawn: (a) during the first nine (9) Policy Years; and (b)
that, according to our rules, is a withdrawal of Premium, not a withdrawal of
Growth. It may be assessed at the time of any partial withdrawal or surrender.
The percentages are as follows:
----------------- ---------------- ---------------- ----------------
Policy Year Percentage Policy Year Percentage
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
1 7.75% 6 5.00%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
2 7.50% 7 4.25%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
3 7.25% 8 3.50%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
4 6.50% 9 2.75%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
5 5.75% 10+ 0.00%
----------------- ---------------- ---------------- ----------------
From time to time, and to the extent permitted by law, we may reduce the amount
of the sales charge and the contingent deferred sales charge, the period during
which such charges apply, or both, when Policies are sold to persons or groups
of persons in a manner that reduces sales expenses. We would consider such
factors as: (a) the size and type of group; (b) the amount of Premiums; and/or
(c) other transactions where sales expenses are likely to be reduced.
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.
How much is the contingent deferred tax charge, and when must I pay it?
The contingent deferred tax charge is a percentage of any amount being
surrendered or withdrawn: (a) during the first nine (9) Policy Years; and (b)
that, according to our rules, is a withdrawal of Premium, not a withdrawal of
Growth. It is assessed at the time of any partial withdrawal or surrender. The
percentages are as follows:
----------------- ---------------- ---------------- ----------------
Policy Year Percentage Policy Year Percentage
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
1 2.25% 6 1.00%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
2 2.00% 7 0.75%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
3 1.75% 8 0.50%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
4 1.50% 9 0.25%
----------------- ---------------- ---------------- ----------------
----------------- ---------------- ---------------- ----------------
5 1.25% 10+ 0.00%
----------------- ---------------- ---------------- ----------------
How much is the maintenance fee and when must I pay it? The maintenance
fee is $2.50 per month. We take the charge from your Account Value monthly in
advance. However, we will waive the maintenance fee on any Monthly Processing
Day if your Account Value is $75,000 or greater.
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. For this purpose, all transfers
occurring during the same Valuation Period are considered one transfer. We
assess the transfer fee pro-rata against the Account Value being transferred in
the same ratio as Account Value is being transferred to such investment options.
It is assessed at the time of any transfer subject to this fee.
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.
What charges do the Portfolios make? Each Portfolio charges different
fees. 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
How do I buy a Policy? We require that our standards be met and that we
receive a Premium before we issue a Policy. We need information to determine if
those standards have been met. We require you to submit an Application as part
of our effort to gather the needed information. We may require additional
information, including, but not limited to, some of the Insured's medical
records. We may also require the Insured to take certain medical tests. As part
of our standards, we will not issue a Policy if, as of the Policy Date, the
Insured would be less than Age 20 or older than Age 90. If our standards are not
met and we received a Premium, we will return to you an amount equal to the
Premium. No interest will be paid.
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 issued by
American Skandia or an affiliate, or proceeds of a redemption from another
financial product, such as mutual funds, distributed by any of our affiliates or
by an affiliate of any of the Portfolios. 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.
What is the Premium, and when do I pay it? The minimum Premium we
generally accept is $10,000. We may accept less under certain circumstances. The
maximum we accept without prior approval by our home office is $500,000. If you
are seeking a specific Face Amount, the Premium will depend on the Insured's
age, risk class and gender, where permitted. We will determine the Face Amount
using the Premium as the Net Single Premium for the Insured's age, risk class
and gender, where permitted. You may submit Premium with the Application if: (a)
the Insured is not over age 80; and (b) the Insured meets certain medical
underwriting criteria. If any portion of the Premium is to be received as part
of a replacement of a life insurance, endowment or annuity policy then we must
receive all our requirements In Writing for all such replacements as of the same
date and any additional Premium amounts other than the proceeds of such
replacement must be received by us at our Office at the same time as we receive
such requirements In Writing. Replacements include tax-free exchanges subject to
our acceptance. We will immediately return any Premium that should not have been
submitted based on these criteria. If we would not accept Premium with the
Application or you chose 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 not issue a Policy until
we receive Premium at our Office. We will not accept Premium of which we were
not informed at the time you submit the Application to us.
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
to pay Premium from one or more financial institutions with which you currently
maintain funds. 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. If you wish to also pay any
additional amounts, we must receive such Premium amounts at the same time we
receive such authorizations.
The standards we apply in reviewing the Application may depend on factors such
as the proposed Insured's age and the amount of Premium to be applied to the
Policy. In certain cases, we may apply simplified standards. However, the
Premium amount you state in the Application may be an estimate if you are
planning: (a) to replace a life insurance, endowment or annuity policy; (b) to
exchange a life insurance or endowment policy; or (c) to use our funds transfer
authorization procedures. If we used simplified standards based on a Premium
estimate but the actual amounts we receive to be applied as Premium exceed the
limits for such standards, we reserve the right, to the extent permitted by law,
to not issue a Policy and return such amounts directly to you or, on your
behalf, to the financial institution from which the funds were obtained. We
cannot guarantee such institution will accept the return of such amounts.
Am I covered 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) the Insured is age 80 or younger; 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 of the conditions
of the temporary insurance agreement are satisfied. The underwriting period
generally will not exceed 45 days. 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 45 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 ends 45 days after the Application is signed, even if the
underwriting period exceeds 45 days.
What is the temporary insurance benefit? If the Insured dies while
temporary insurance is in effect, we pay the Beneficiary the lesser of the Face
Amount 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.
How and when is my Premium invested? We invest the Premium on the Issue
Date. You can request that we allocate the Premium using one or more variable
investment options and/or a Fixed Allocation. However, we initially invest the
portion of the Premium that you indicate to us that you want invested in
variable investment options in the AST Money Market Sub-account, unless you
submit a "return waiver" In Writing before the Issue Date, where permitted by
law. 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.
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 Premium paid or your
Account Value plus any charges deducted from your Account Value. However, if you
have submitted a "return waiver," we will return only your Account Value plus
any charges deducted from your Account Value. This may be more or less than
Premium paid.
Variable Investment Options
What are the investment objectives and policies of the variable
investment options? What charges are made by the Portfolios in which these
options invest? Each variable investment option is a Sub-account of the Separate
Account. Each Sub-account invests exclusively in one Portfolio. Details about
the investment objectives, policies, risks, costs and management of the
Portfolios are found in the prospectuses for the underlying mutual funds. You
should carefully read such prospectuses for any Portfolio in which you are
interested. To assist you in determining which Portfolios may be of interest to
you, we have provided below a list of the Portfolios, their investment
objectives (in italics) and a short, summary description of their key policies.
Next to each Portfolio's investment objective and policies is the investment
management fee, other expenses, and the total annual expense for such Portfolio.
The total annual expense is 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. Except as noted, all expenses shown are after any applicable
reimbursement or waiver of fees. These percentages are fees for the calendar
year that ended December 31, 1997. Those Portfolios below that are marked with
an asterisk (*) have not been in operation for a full year. Therefore, the
expenses shown are estimated and annualized. The underlying mutual fund
portfolio information was provided by the underlying mutual funds and has not
been independently verified by the Company.
- --------------------------------------------------------------------------------------------- -------------- ----------- -----------
Investment Other Total
Portfolio: Investment Objective/Policies Management Expenses Annual
Fee Expenses
- --------------------------------------------------------------------------------------------- -------------- ----------- -----------
- ------------------------------------------------------------------------------------------------------------------------------------
American Skandia Trust Portfolios
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
JanCap Growth: growth of capital in a manner consistent with the preservation of capital. The
Portfolio pursues its objective by emphasizing investments in common stocks. 0.90% 0.20% 1.10%
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
AST Janus Overseas Growth: to seek long-term growth of capital. The Portfolio pursues its
objective primarily through investments in common stocks of issuers located outside the United 1.00% 0.42% 1.42%
States.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
Lord Abbett Growth and Income: long-term growth of capital and income while attempting to avoid
excessive fluctuations in market value. Normally, investments will be made in common stocks of
seasoned companies which are expected to show above-average growth and which the Portfolio's 0.75% 0.22% 0.97%
sub-advisor believes to be in sound financial condition.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
*Lord Abbett Small Cap Value: to seek long-term capital appreciation. Investments will be
primarily made in equity securities which are believed to be undervalued. Under normal
circumstances, the Portfolio will invest at least 65% of its assets in common stocks issued by 0.95% 0.39% 1.34%
smaller, less well-known companies, with market capitalizations of less than $1 billion.
Smaller companies may carry more risk than larger companies.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
*Neuberger&Berman Mid-Cap Value: to seek capital growth. The Portfolio seeks capital growth
through an investment approach that is designed to increase capital with reasonable risk. The
Portfolio invests principally in common stocks of medium to large capitalization established X.xx% X.xx% X.xx%
companies, using a value-oriented investment approach. The Sub-advisor looks for securities
believed to be undervalued based on strong fundamentals, including a low price-to-earnings
ratio, consistent cash flow, and the company's track record through all parts of
the market cycle.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
Federated High Yield: to seek high current income by investing primarily in a diversified
portfolio of fixed income securities. The Portfolio will invest at least 65% of its assets in
lower-rated (BBB or lower) fixed rate corporate debt obligations. Investments of this type are
subject to a greater risk of loss of principal and interest than investments in higher rated 0.75% 0.28% 1.03%
securities and are generally considered high risk. Lower-rated or unrated bonds are commonly
referred to as "junk bonds."
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
AST Money Market: to maximize current income and maintain high levels of liquidity. The
Portfolio attempts to accomplish its objective by maintaining a dollar-weighted average
maturity of not more than 90 days and by investing in securities which have effective 0.45% 0.15% 0.60%1
maturities of not more than 397 days.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
T. Rowe Price Asset Allocation: to seek a high level of total return by investing primarily in
a diversified group of fixed income and equity securities. Under normal conditions over the
long-term, the Portfolio expects to allocate its assets so that approximately 40% of its assets 0.85% 0.35% 1.20%
will be in fixed income securities and approximately 60% in equity securities.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
T. Rowe Price International Equity: to seek total return of its assets from long-term growth of
capital and income, principally through investments in common stock of established, non-U.S.
companies. The Portfolio intends to diversify broadly among countries and to normally have at 1.00% 0.35% 1.35%
least three different countries represented in the Portfolio.
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
- ------------------------------------------------------------------------------------------------ ----------- ----------- -----------
T. Rowe Price Natural Resources: to seek long-term growth of capital through investment
primarily in common stocks of companies which own or develop natural resources and other basic
commodities. The Portfolio will invest primarily (at least 65% of its total assets) in common 0.90% 0.40% 1.30%
stocks of companies which own or develop natural resources and other basic commodities.
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T. Rowe Price International Bond: seeks to provide high current income and capital appreciation
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, non
dollar-denominated government and corporate bonds outside the United States. The Portfolio may
also invest up to 20% of its assets in below investment-grade, high-risk bonds, including bonds 0.80% 0.36% 1.16%
in default or those with the lowest rating (commonly referred to as "junk bonds").
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T. Rowe Price Small Company Value: to provide long-term capital appreciation by investing
primarily in small-capitalization stocks that appear to be undervalued. The Portfolio will
invest at least 65% of its total assets in companies with a market capitalization of $1 billion
or less that appear undervalued by various measures, such as price/earnings or price/book value 0.90% 0.37% 1.27%
ratios. Investing in small companies involves greater risk, as well as greater
opportunity, than is customarily associated with more established companies.
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Founders Capital Appreciation: to seek capital appreciation. The Portfolio will normally
invest at least 65% of its total assets in common stocks of U.S. companies with market
capitalizations of $1.5 billion or less. Investment in such companies may involve greater risk 0.90% 0.26% 1.16%
than is associated with more established companies.
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Founders Passport: to seek capital appreciation. The Portfolio invests primarily in securities
issued by foreign companies which have market capitalizations or annual revenues of $1 billion
or less. At least 65% of the Portfolio's assets will normally be invested in foreign
securities representing a minimum of three countries. The Portfolio will normally will invest
a significant proportion of its assets in the securities of small and medium-sized companies, 1.00% 0.36% 1.36%
which involves greater risk than is customarily associated with more established companies.
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INVESCO Equity Income: to seek high current income while following sound investment practices.
Capital growth is a secondary consideration. The Portfolio seeks to achieve its objective by
investing in securities which will provide a relatively high-yield and stable return and which,
over the years, may also provide capital appreciation. The Portfolio normally will invest at 0.75% 0.23% 0.98%
least 65% of its assets in dividend-paying, marketable common stocks of domestic
and foreign industrial issuers.
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PIMCO Total Return Bond: to seek to maximize total return consistent with preservation of
capital. The Portfolio will invest in a diversified portfolio of fixed-income securities of 0.65% 0.24% 0.89%
varying maturities with a portfolio duration from three to six years.
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PIMCO Limited Maturity Bond: to seek to maximize total return, consistent with preservation of
capital and prudent investment management. The Portfolio will invest in a diversified
portfolio of fixed income securities of varying maturities with a portfolio duration from one 0.65% 0.24% 0.89%
to three years.
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*Neuberger&Berman Mid-Cap Growth: to seek capital appreciation. The Portfolio invests in a
diversified portfolio of common stocks believed to have the maximum potential for long-term
above-average capital appreciation. Under normal conditions, the Portfolio primarily invests X.xx% X.xx% X.xx%
in the common stocks of companies with equity market capitalizations from $300 million to $10
billion at the time of investment. The Portfolio does not seek to invest in
securities that pay dividends or interest, and any such income is incidental.
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Robertson Stephens Value + Growth: to seek capital appreciation. The Portfolio will invest
primarily in growth companies believed by the sub-advisor to have favorable relationships
between price/earnings ratios and growth rates in sectors offering the potential for
above-average returns. The Portfolio may invest a substantial portion of its assets in
securities of small companies. Such companies may offer greater opportunities for capital 1.00% 0.33% 1.33%
appreciation than larger companies, but investments in such companies may involve certain
special risks. The Portfolio may invest up to 35% of its net assets in securities principally
traded in foreign markets.
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AST Putnam Value Growth & Income: to seek 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 objectives, invest in stocks that offer 0.75% 0.33% 1.08%
potential for current income. The Portfolio may invest up to 20% of its assets in securities
traded in foreign markets.
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AST Putnam International Equity: to seek capital appreciation. The Portfolio seeks its
objective by investing primarily in equity securities of companies located in a country other
than the United States. The Portfolio will, under normal circumstances, invest at least 65% of 0.89% 0.27% 1.16%
its total assets in issuers located in at least three different countries other
than the United States.
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AST Putnam Balanced: to provide a balanced investment composed of a
well-diversified portfolio of stocks and bonds which will produce both capital
growth and current income. The Portfolio may invest in almost any type of
security or negotiable instrument, including cash or money market instruments.
The portion of the Portfolio's assets invested in equity securities and
fixed income securities will vary from time to time in light of the Portfolio's investment 0.75% 0.24% 0.99%
objective, changes in interest rates and economic of other factors. Under normal market
conditions, it is expected that at least 25% of the Portfolio's total assets
will be invested in fixed income securities.
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Twentieth Century Strategic Balanced: to seek capital growth and current income. It is the
intention of the Portfolio's sub-advisor to maintain approximately 60% of the Portfolio's
assets in common stocks that are considered by the sub-advisor to have better-than-average 0.85% 0.33% 1.18%
prospects for appreciation and the remainder in bonds and other fixed income securities.
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Twentieth Century International Growth: to seek capital growth. The Portfolio will invest
primarily in issuers in developed markets. Under normal conditions, the Portfolio will invest
at least 65% of its assets in equity and equity equivalent securities of issuers from at least 1.00% 0.42% 1.42%
three different countries outside the United States.
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*Cohen & Steers Realty: to maximize total return through investment in real
estate securities. The Portfolio pursues its investment objective of maximizing
total return by seeking, with approximately equal emphasis, capital appreciation
(both realized and unrealized) and current income. Under normal circumstances,
the Portfolio will invest substantially all of its assets in the equity
securities of "real estate companies". Real estate companies include those
companies that derive at least 50% of its revenues from the ownership, construction, financing, 1.00% 0.40% 1.40%
management or sale of commercial, industrial, or residential real estate or that
has at least 50% of its assets in such real estate.
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*Stein Roe Venture: to seek long-term capital appreciation. The Portfolio emphasizes
investments in financially strong small and medium-sized companies, based principally on
management appraisal and stock valuation. The Portfolio will pursue its objective by investing
primarily in a diversified portfolio of common stocks and other equity-type securities of 0.95% 0.39% 1.34%
entrepreneurially managed companies the sub-advisor believes represent special opportunities.
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*Bankers Trust Enhanced 500: to outperform the Standard & Poor's 500 Composite
Stock Price Index (the "S&P 500(R)") through stock selection resulting in
different weightings of common stocks relative to the index. The Portfolio will
include the common stocks of companies
included in the S&P 500(R)4. While the majority of the issues held by the Portfolio will have 0.60% 0.20% 0.80%2
neutral weightings to the S&P 500, approximately 100 will be under over- or
under-weighted relative to the index.
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*Marsico Capital Growth: to seek capital growth. Income realization is not an investment
objective and any income realized on the Portfolio's investments, therefore, will be incidental
to the Portfolio's objective. The Portfolio will pursue its objective by investing primarily
in common stocks in industries and companies the sub-advisor believes are experiencing 0.90% 0.38% 1.28%
favorable demand for their products and services, and which operate in a
favorable competitive and regulatory environment.
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The Alger American Fund Portfolios
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Alger American Growth: long-term capital appreciation. Except during temporary defensive
periods, the Portfolio invests at least 65% of its total assets in equity securities of 0.75% 0.04% 0.79%
companies that, at the time of purchase, have total market capitalization of $1
billion or greater.
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Alger American Small Capitalization: long-term capital appreciation. Except during defensive
periods, the Portfolio invests at least 65% of its total assets in equity securities of
companies that, at the time of purchase of the securities, have total market capitalization 0.85% 0.03% 0.88%
within the range of companies included within the Russell 2000 Growth Index or
the S&P SmallCap 600 Index, updated quarterly.
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Alger American MidCap Growth: long-term capital appreciation. Except during temporary
defensive periods, the Portfolio invests at least 65% of its total assets in equity securities
of companies that, at the time of purchase of the securities, have total market capitalization 0.80% 0.04% 0.84%
within the range of companies included in the S&P MidCap 400 Index, updated quarterly.
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Montgomery Variable Series Portfolio
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Emerging Markets Fund: capital appreciation, which under normal conditions it seeks by
investing at least 65% of its total assets in equity securities of companies in countries
having emerging markets. Under normal conditions, investments are maintained in at least six 0.23% 1.22% 1.453
emerging market countries at all times and no more than 35% of total assets are
invested in any one emerging market country.
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Life and Annuity Trust Portfolio
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Equity Value Fund: seeks to provide investors with long-term capital appreciation by investing
primarily in equity securities, including common stocks and may invest in debt instruments that
are convertible into common stocks of both domestic and foreign companies. Income generation X.xx% X.xx% X.xx%
is a secondary consideration. The Portfolio may invest in large,
well-established companies and smaller companies with market capitalization
exceeding $50 million.
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1 The management fee without any voluntary waiver would have been 0.50%; the
other expenses without any reimbursement would have been 0.21%; the total
annual expenses without any waiver or reimbursement would have been 0.71%.
2 The other expenses without any reimbursement would have been 0.57%; the
total annual expenses without any waiver or reimbursement would have been
1.17%.
3 The management fee without any voluntary waiver would have been 1.25%; the
total annual expenses without any waiver or reimbursement would have been
2.47%.
4 "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.
Transfers and Allocation Services
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?" Unless you instruct us otherwise, we
permit the agent of record to make transfers on your behalf.
Are there any limits on transfers? No transfers are permitted when the
Policy is in its "grace period." At the time of any transfer, we require that a
minimum of $500.00 be allocated to any investment option in which you maintain
Account Value. If, at the time of a transfer there would be less than $500.00 in
an investment option, we will 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, limit or delay transfers, either for one
Owner or a group of Owners, if we believe there may be adverse consequences for
other Owners.
What are `allocation services'? Allocation services are programs that
automatically transfer Account Value between investment options. Any limitations
on transfers from Fixed Allocations also apply if any allocation services are
being utilized.
What allocation services does American Skandia provide? We support
dollar cost averaging and static rebalancing.
Loans
When can I take a loan? We offer loans using Account Value as
collateral. We do not make loans available during the first Policy Year.
Starting after the first Policy Year, we allow one loan 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, we will establish
on the Issue Date a loan equal to the outstanding indebtedness on previous life
insurance exchanged for a Policy.
Is this type of loan tax-free? A loan from this Policy is treated for
income tax purposes as a distribution, similar to a partial withdrawal, in that:
(a) amounts are deemed to come first from any gain in the Policy; (b)
distributions of gain are subject to income tax as ordinary income; and (c) if
the distribution occurs before the taxpayer's age 59 1/2, there may be an
additional 10% tax on any gain distributed.
How much is available for a loan? You can receive loans equal to 90% of
your current Account Value less any applicable contingent deferred sales charge
and contingent deferred tax charge. At the time you take any loan, the amount
then available for a new loan is the maximum otherwise available less any Debt.
The minimum amount you may borrow is $500.
What happens to the Account Value if I take a loan? When you take a
loan, we move 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 Account Value
transferred to the Loan Account would earn more than would be earned in the
investment options, the loan will have a positive impact on your Account Value
and on the Required Death Benefit. If the Account Value transferred to the Loan
Account would earn less than would be earned in the investment options, the loan
will have a negative impact on your Account Value and on the Required Death
Benefit.
What is the interest rate charged on any loan? You owe us interest on
any loan 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.
Does Account Value in the Loan Account earn interest? We credit
interest at the rate of 6.0% per year, compounded yearly, to the Account Value
maintained in the Loan Account that serves as collateral for a "preferred loan."
We credit interest at the rate of 4.0% per year, compounded yearly, to the
Account Value maintained in the Loan Account that serves as collateral for a
"standard loan."
What are a "preferred loan" and a "standard loan"? 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 source of the collateral to support the loan. We consider the Account
Value moved to the Loan Account to come first from Growth. The portion of any
outstanding loans supported by Account Value drawn from Growth is treated as a
preferred loan. The portion of any outstanding loans supported by Account Value
drawn from other than Growth is treated as a standard loan. A loan retains its
character as "preferred" or "standard" until repaid.
Once a loan is taken, does American Skandia ever require more
`collateral' in the Loan Account? The Loan Account acts as collateral for any
loans from us, so we need to make sure the Debt and the Account Value in the
Loan Account 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.
When must I repay the loan? You are not required to repay the loan
while the Insured is alive, except when an amount is due to keep the Policy in
force or upon reinstatement.
What happens at the Insured's death if I have not repaid the loan? 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.
What happens if I repay any portion of the loan? The amount of Debt is
reduced by the amount of any loan repayment. Any standard loan is repaid before
any preferred loan. The repayment reduces 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 such
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.
Partial Withdrawals
When can I make a partial withdrawal? We allow partial withdrawals
while the Insured is alive, except that, where permitted by law, you may not
take a partial withdrawal until after the end of the "free-look" period.
How much is available as a partial withdrawal? The maximum partial
withdrawal available at any time equals the then current maximum amount we would
permit as a loan under your Policy. This amount is equal to 90% of your current
Account Value less any applicable contingent deferred sales charge and
contingent deferred tax charge. The minimum amount of a partial withdrawal is
$500.00.
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.
Is there a charge for a partial withdrawal? We charge any applicable
contingent deferred sales charge and contingent deferred tax charge on the
portion of any partial withdrawal that is not treated as a "free withdrawal" or
for which we waive such charges under the medically-related waiver provision. We
take these charges pro-rata from the investment options from which we take the
Account Value as a result of the partial withdrawal.
What amount can I take as a free withdrawal? In any Policy Year the
maximum amount you can take as a free withdrawal is the greater of Growth or 10%
of the Premium. The following examples may help show what this means. For each
example, assume that the Premium was $50,000.
(a) For this example assume the Account Value as of the Valuation Day
we process your partial withdrawal is $60,000. You request a partial withdrawal
of $25,000. Assume also that you have not requested any other partial
withdrawals during this Policy Year. The free withdrawal amount is the greater
of Growth, which is the current Account Value ($60,000) less the Premium
($50,000), or $10,000, and 10% of the Premium, which is $5,000. Therefore, we
treat $10,000 as the free withdrawal portion of this partial withdrawal.
Assuming that this partial withdrawal request occurs during the "surrender
charge period," and there is no subsequent Growth in that Policy Year, we would
assess the then applicable contingent deferred sales charge and contingent
deferred tax charge on $15,000, which is the portion of the partial withdrawal
that exceeds the free withdrawal amount. The contingent deferred sales charge
and contingent deferred tax charge would apply to the full amount of any
subsequent partial withdrawal you request during the same Policy Year that was
not eligible for a medically-related waiver.
(b) For this example assume the Account Value as of the Valuation Day
we process your partial withdrawal request for the "maximum free withdrawal
amount" is $47,000. Assume also that you have not requested any other partial
withdrawals during this Policy Year. The free withdrawal amount is the greater
of Growth, which is the current Account Value ($47,000) less the Premium
($50,000), or $3,000, and 10% of the Premium, which is $5,000. Therefore, the
maximum free withdrawal amount is $5,000. Assuming that this partial withdrawal
request occurs during the "surrender charge period," and there is no subsequent
Growth in that Policy Year, the contingent deferred sales charge and the
contingent deferred tax charge would apply to any subsequent surrender or
partial withdrawal that Policy Year that was not eligible for a
medically-related waiver.
Does a partial withdrawal affect the Death Benefit? A partial
withdrawal reduces the Required Death Benefit. The Required Death Benefit is
reduced because the Account Value, which is used in calculating the Required
Death Benefit, has been reduced. It also reduces the Guaranteed Minimum Death
Benefit in the same proportion as the Account Value is reduced by the partial
withdrawal. The effect on the Guaranteed Minimum Death Benefit is described
above in response to the question "What is the Guaranteed Minimum Death
Benefit."
Can I put back funds taken as a partial withdrawal? No.
Surrenders
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.
What is paid out when a Policy is surrendered? If you surrender the
Policy, we will pay you the Cash Value.
Accelerated Death Benefit
What is an accelerated death benefit? An accelerated death benefit is
pre-payment to the Insured of a portion of the Death Proceeds. The maximum we
will pay, before any reductions, is the lesser of 50% of the Required 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. We reserve the
right to change the interest rate discount percentage.
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.
What happens to the remaining benefits if American Skandia makes such a
payment? Any such payment reduces the Account Value, the Premium, the Guaranteed
Minimum Death Benefit and any Debt in the same ratio as the Required Death
Benefit is reduced as of the Valuation Period such a payment is made. You should
consult a tax advisor on the tax consequences of such a payment. Please refer to
Appendix B for a hypothetical illustration of the accelerated death benefit
provision.
Medically-Related Waiver
What is a medically-related waiver? The medically-related waiver is
available by rider to the Policy, currently with no charge to you. A
medically-related waiver is our waiver of the contingent deferred sales charge
and the contingent deferred tax charge that would otherwise apply to a partial
withdrawal or surrender. Note that while the accelerated death benefit is
payable to the Insured, the medically-related waiver is a benefit, while based
on the Insured's life, that is of value to the Owner, who normally is the
recipient of amounts paid as a partial withdrawal or surrender.
When would American Skandia waive these charges? We will consider
waiving the contingent deferred sales charge and contingent deferred tax charge,
where allowed by law, based on your request. We only waive these charges if we
receive 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, and that such confinement started after the Issue Date.
Are there any restrictions on medically-related waivers? We will only
consider waiving the contingent deferred sales charge and the contingent
deferred tax charge on a partial withdrawal or surrender up to $500,000. The
$500,000 maximum will apply to a partial withdrawal(s) or surrender, 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.
What happens to the remaining benefits if American Skandia makes such a
payment in connection with a partial withdrawal? A partial withdrawal for which
we grant a medically-related waiver has the same impact on the remaining
benefits that results from any other partial withdrawal. We simply do not deduct
the contingent deferred sales charge and contingent deferred tax charge that
otherwise would apply.
Risks
What are the risks, and who takes the risks? We bear the risk that, for
all the Policies issued, when considered together, our expenses exceed our
charges, including the expense for providing from our general account 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 in
guaranteeing the Guaranteed Minimum Death Benefit if your Policy lapses and you
do not have any Debt. 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. Any irrevocable beneficiary
bears the risk as to the Death Proceeds, which are affected by investment
performance of the investment options, the age at which the Insured dies, any
loan or withdrawal activity by the Owner prior to the Insured's death or payment
of an accelerated death benefit.
Other Rights
Do I have any other rights if I buy a Policy? There are certain other
ownership rights you may exercise under a Policy. Some of these rights include,
but are not limited to, the following. You may name a Beneficiary. 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. You 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
it is held in connection with certain retirement plans designed to be
"qualified" plans under the Code.
The Separate Account
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
the portion of the Death Proceeds greater than the Account Value; (4) for any
settlement option; and (5) 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 reserve 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 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
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 why 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.
Is gain in the Policy taxed every year? Under most circumstances, any
gain in the Policy is not taxed currently. However, if you assign or pledge the
Policy, we expect to report any gain in the Policy as then currently taxable as
ordinary income. In addition, except in the case of a partial assignment as of
the Policy Date, we expect to report gain in the Policy as currently taxable in
each tax year the assignment remains in effect.
How are amounts that I receive before the Insured's death taxed?
Amounts you receive as a partial withdrawal, a loan or if you surrender the
Policy are deemed for income tax purposes to come first from any gain in the
Policy. Any gain is taxed as ordinary income. Any portion of these types of
distributions representing gain in the Policy may be subject to a 10% tax
penalty if taken before your age 59 1/2.
What are the taxes due on the Death Proceeds? Under most circumstances,
the Beneficiary does not pay any income tax on the Death Proceeds.
Available Information
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 taping 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 is the Owner unless you tell us otherwise. If you name
more than one Owner, all rights reserved to Owners are then held jointly. 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 by the Portfolio during that Valuation Period; 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 plus any declared or unpaid
dividends per share of the underlying Portfolio shares held in
that Sub-account at the end of the preceding Valuation Period;
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. In connection with such programs,
we may support periodic withdrawals from your Policy to pay your financial
professional. 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 will 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 are offering 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.
Limitations on Transfers
We retain the right to refuse or delay 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.
Death During the Grace Period
If the Insured dies during a grace period while there is any Debt and before we
receive any payment, we deduct the unpaid charges from the Death Benefit when
calculating the Death Proceeds. For more information on the grace period, please
refer to the response to the question "Do I have to maintain a minimum Cash
Value?"
Reinstatement
You may apply for reinstatement of the Policy if it lapses. We must receive this
application In Writing at our Office within 3 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 and any
Debt.
Maturity
A Policy "matures" as of the Policy Anniversary on which the Insured is Age 95.
If there are two Insureds, a Policy "matures" as of the Policy Anniversary on
which the younger Insured is Age 95 or would have been Age 95 if the younger
Insured is then deceased. 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. We may provide a rider, where permitted by law, that allows
the Policy to mature at a later date if there is adequate guidance available to
us regarding the tax treatment of all Policies if we were to permit extension of
the maturity date. Should we permit such extension of the maturity, we advise
you to seek tax advice regarding your specific circumstances should you want the
Policy to mature at a later date. If the Policy is no longer treated as life
insurance after any extension of maturity, gain in the Policy may be taxable to
you in the year of the original maturity and all or a portion of the Death
Proceeds may be taxable to the beneficiary.
Pricing Transactions
We "price" charges, transfers, distributions and payments on the dates 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) We price "scheduled" transactions such as monthly deductions,
transfers and distributions as of the date such transactions are so scheduled.
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 last
Valuation Day prior to 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.
(2) We price "unscheduled" transactions such as transfers, loans or
partial withdrawals that are not subject to any medical waiver as of the date we
receive at our Office the request for such transactions. "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 as of
the date we receive such amounts at our Office. These include loan repayments,
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. 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, 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 30 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 30 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 Issue 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
Depending on your Age at the time you apply for a Policy, it may be advantageous
to have the Policy Date be earlier than the Issue Date. This is known as
"backdating." Doing so may enable you to qualify for lower cost of insurance
charges. We only permit backdating if: (a) doing so will qualify you for a lower
cost of insurance charge; and (b) the Policy Date is the no earlier than the
date the Application is signed and in no case more than 90 days before the Issue
Date. If you elect backdating, on the Issue Date we will deduct charges that
would have been deducted as of the Policy Date and any Monthly Processing Dates
between the Policy Date and the Issue Date. To the extent permitted by law, we
do not guarantee any increase in the Account Value for the period between the
Policy Date and the Issue Date. However, we also reserve the right, to the
extent permitted by law, to credit you a fixed rate of interest for such period.
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. The amount of the loan will be equal to the loan that
was in effect before you surrendered your prior policy. Under our rules we will,
among other things, increase the Account Value as of the Policy Date by the
amount of the loan and allocate that portion of the increased Account Value to
the Loan Account as collateral for the loan. By increasing the Account Value,
there will be a corresponding increase in the Face Amount and the 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. Any contingent deferred sales charge and contingent
deferred tax charge will be based on the actual amounts received, not such
amounts plus the amount of the loan. All charges that are calculated as a
percentage of your Account Value will increase because the Account Value will be
increased by the amount of the loan.
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 may also 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 a "modified endowment contract": Under most circumstances, taxes on
any gain in the Policy are `deferred' and not taxed every year. Unless your
Policy is established as part of an eligible exchange of a life insurance policy
entered into before June 21, 1988, amounts you receive as a partial withdrawal,
a loan or as a surrender are taxed in the same manner as distributions from a
deferred annuity before annuity payments begin. This means that these types of
distributions are deemed to come first from any gain in the policy and that any
gain is treated as ordinary income. It also means that distributions of gain may
be subject to a 10% tax penalty if taken before age 59 1/2. Under most
circumstances, the Beneficiary will not pay any income tax on the Death
Proceeds.
Assignment: If you assign or pledge any portion of the Policy, the transaction
is treated as a distribution subject to taxation as ordinary income. The tax
penalty noted above may apply. In addition, except in the case of a partial
assignment as of the Policy Date, we expect to report gain in the Policy as
currently taxable in each tax year the assignment remains in effect.
Gifts: If you give your Policy as a gift to an entity for which you are not the
taxpayer or to anyone other than your spouse (or former spouse incident to a
divorce), the gift is treated for tax purposes as a distribution.
Aggregation rules: You may purchase more than one life insurance policy from us
in the same calendar year that is treated under the Code as a "modified
endowment contract," including the Policy described in this Prospectus. If you
do, all such policies are subject to "aggregation rules." Under these rules, all
of these policies must be treated as one modified endowment contract when
determining the portion of any distribution or deemed distribution which is
currently taxable. It is also possible that these aggregation rules may apply to
any annuity contracts you purchase from us in the same calendar year as you
purchase a Policy.
Exchanges: Section 1035 of the Code permits certain 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; and (b) 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. If you exchange a life insurance policy entered into
before June 21, 1988 which is not a modified endowment contract, we believe the
new policy generally will not be treated as a modified endowment contract if no
new premium is paid and there is no reduction in the death benefit as a result
of the exchange. For those Policies not treated as modified endowment contracts,
we believe that loans are not treated as distributions and withdrawals are
deemed to come first from your investment in the policy. In addition, we believe
that the aggregation rules as well as the tax treatment of assignments, pledges
and gifts, noted above, would not apply. However, we cannot guarantee this tax
treatment and advise you to consult your tax advisor before exchanging any
existing life insurance 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 to be treated as a direct
skip any amount we are required to pay.
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 to an Insured 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 are 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.
Extending the Policy's Maturity: We believe that a Policy will continue to be
treated as life insurance and as a modified endowment contract under the Code if
you extend the Policy's maturity under any extended maturity rider we may offer
in the future. 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 any extension of maturity, 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 may 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.
Taxes other than Federal income 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; (e) the barriers preventing most banks from selling or
underwriting insurance: and (f) 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 law firm of Werner & Kennedy 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 audited financial statement included in this Prospectus and Registration
Statement are presented in accordance with generally accepted accounting
principles. These statements were audited by Ernst & Young LLP, independent
auditors for the period ended December 31, 1997, and by Deloitte & Touche LLP
for the periods ended December 31, 1996, 1995, 1994 and 1993. We rely on their
respective authority as experts in accounting and auditing.
Brian L. Hirst 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, Inc."), a wholly-owned
subsidiary of American Skandia Investment Holding Corporation, acts as the
principal underwriter of the Policies. ASM, Inc.'s principal business address is
One Corporate Drive, Shelton, Connecticut 06484. ASM, Inc. 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, Inc. 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, Inc. may offer Policies directly to potential purchasers. The
maximum initial concession to be paid on premiums received is 8.5% and 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
concessions from time-to-time on the investment options chosen by Owners,
including investment options that may be deemed our "affiliates" or "affiliates"
of ASM, Inc. under the Investment Company Act of 1940.
As of the date of this Prospectus, we expect to 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 this program 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 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 either the cost of insurance charges, the contingent deferred sales
charge, the contingent tax charge or the maintenance fee. 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.
As of the date of this Prospectus, all the Portfolios existed prior to the
inception of these Sub-accounts. 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 actual historical performance since inception of the
Sub-accounts. Any such historical performance will be based on assumptions.
These include assumptions regarding: (a) the Age, risk class and gender, where
applicable, of an Insured or Insureds; (b) the Premium and Policy Date; and (c)
assumptions about a lack of transfers, loans, loan repayments and withdrawals
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 B, 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 and directors are listed in Appendix E.
Financial Statements
Financial statements for American Skandia Life Assurance Corporation and
American Skandia Life Assurance Corporation Separate Account F are found in
Appendix F.
APPENDIX A
Illustrations
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 your personal characteristics 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 expected risk class(es) of the Insured(s); (c) the gender of
the Insured(s), where permitted; (d) the Face Amount you seek or the amount of
Premium you intend to pay; and (e) applicable cost of insurance charges. 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 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.
As of the date of this Prospectus, we do not provide hypothetical illustrations
that assume future loans, withdrawals, loan repayments or varying assumed rates
of return. 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. 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 1.10% for the Portfolios.
The total annual expenses for the underlying mutual funds are shown
in the section entitled "Variable Investment Options." The 1.10%
hypothetical expense ratio is the average of the actual total annual
expenses for all available Portfolios as of December 31, 1997.
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 1.10% hypothetical expense ratio, when
deducted from the hypothetical average annual gross rates of return
equals a hypothetical average annual net rate of return of -1.10%,
4.90% and 10.90%, respectively
3. The mortality and expense risk charge assessed against the assets in
the Separate Account at an annualized rate of 0.90%. 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 cost of insurance
charges that differ by gender. It is assumed that there are no
transfer fees applicable. The hypothetical illustrations will be
presented based on both the current and guaranteed cost of insurance
charges.
5. 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.
6. The Age(s) and gender of the Insured(s) shown in each illustration.
The cost of insurance charges differ based on the age(s) of the
Insured(s) on the Policy Date and, where permitted by law, the
gender of the Insured(s).
7. The Insured(s) is/are eligible for the no tobacco use risk class.
For each gender and age classification, the cost of insurance rate
for the "No Tobacco Use" classification is .35% lower than the rate
for the "Tobacco User" classification.
8. The Premium and Face Amount are as shown in each illustration.
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
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$25,000 $ 55 Male Single Life 0% No Usage
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- ---------------- ------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- ---------------- ------------------
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====================================================================================================================================
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 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.
================================================================================
- --------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
$25,000 $ 55 Male Single Life 6% No Usage
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- ------------------ ----------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- ------------------ ----------------
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====================================================================================================================================
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 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.
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
$25,000 $ 55 Male Single Life 12% No Usage
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- ---------------- ------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- ---------------- ------------------
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1
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====================================================================================================================================
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 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.
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
$25,000 $ 55 Female Single Life 0% No Usage
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- -----------------------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- -----------------------------------
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====================================================================================================================================
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 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.
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
$25,000 $ 55 Female Single Life 6% No Usage
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- -----------------------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- -----------------------------------
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1
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7
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
8
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
9
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
10
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
11
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
12
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
13
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
14
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
15
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
16
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
17
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
18
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
19
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
20
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
25
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
30
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
35
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
====================================================================================================================================
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 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.
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ---------------- -------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
$25,000 $ 55 Female Single Life 12% No Usage
- ------------------ -------------------- ------------------ ------------------ ------------------ ---------------- ------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- ---------------- ------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
1
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
2
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
3
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
4
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
5
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
6
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
7
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
8
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
9
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
10
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
11
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
12
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
13
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
14
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
15
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
16
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
17
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
18
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
19
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
20
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
25
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
30
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
35
- ------------------ ------------------ ------------------- ------------------ ------------------- ---------------- ------------------
====================================================================================================================================
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 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.
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ---------------- -------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
$25,000 $ 55 Female Joint Life 0% No Usage
55 Male
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- -----------------------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
1
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
2
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
3
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
4
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
5
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
6
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
7
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
8
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
9
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
10
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
11
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
12
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
13
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
14
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
15
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
16
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
17
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
18
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
19
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
20
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
25
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
30
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
35
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
====================================================================================================================================
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 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.
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ---------------- -------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
$25,000 $ 55 Female Joint Life 6% No Usage
55 Male
- ------------------ -------------------- ------------------ ------------------ ------------------ -----------------------------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- -----------------------------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
1
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
2
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
3
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
4
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
5
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
6
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
7
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
8
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
9
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
10
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
11
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
12
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
13
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
14
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
15
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
16
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
17
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
18
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
19
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
20
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
25
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
30
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
35
- ------------------ ------------------ ------------------- ------------------ ------------------- -----------------------------------
====================================================================================================================================
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 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.
================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Modified Single Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
- ---------------- -------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Initial Premium Initial Face Amount Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Joint Life Rate of Return Classification
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
$25,000 $ 55 Female Joint Life 12% No Usage
55 Male
- ------------------ -------------------- ------------------ ------------------ ------------------ ------------------ ----------------
- ------------------ --------------------------------------------------------- -------------------------------------------------------
Current Charges Guaranteed Charges
End of Policy
Year
--------------------------------------------------------- -------------------------------------------------------
------------------ ------------------- ------------------ ------------------- ------------------ ----------------
Death Benefit Account Value Cash Value Death Benefit Account Value Cash Value
------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
1
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
2
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
3
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
4
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
5
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
6
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
7
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
8
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
9
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
10
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
11
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
12
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
13
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
14
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
15
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
16
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
17
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
18
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
19
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
20
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
25
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
30
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
35
- ------------------ ------------------ ------------------- ------------------ ------------------- ------------------ ----------------
====================================================================================================================================
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 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
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. The Premium paid was $20,000.
2. The Accelerated Death Benefit provision is exercised as of the 10th
Policy Anniversary.
3. The investment options in which Account Value was allocated have
grown at a hypothetical average annual net rate of return of 8%
since the Issue Date.
4. There have been no loans or loan repayments.
5. No amounts have been withdrawn.
6. 50% of the maximum
available amount is taken pursuant to the accelerated death benefit
provision.
7. The 12 month interest rate discount used in the calculation of the
benefit assumes interest at 6% per year, compounded yearly.
The following are various policy values immediate before and after the
accelerated death benefit is paid:
------------------------- -------------------------
Female Age 45 Male Age 65
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Account Value Before the Accelerated Death Benefit $34,224 $33,708
is Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Cash Value Before the Accelerated Death Benefit is $34,224 $33,708
Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Maximum Amount Available For a Loan Before the $30,802 $30,337
Accelerated Death Benefit is Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Death Benefit Before the Accelerated Death Benefit $85,371 $45,746
is Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Guaranteed Minimum Death Benefit Before the $34,224 $33,708
Accelerated Death Benefit is Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Amount Paid as the Accelerated Death Benefit $20,135 $10,789
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Account Value After the Accelerated Death Benefit is $25,668 $25,281
Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Cash Value After the Accelerated Death Benefit is $25,668 $25,281
Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Maximum Amount Available For a Loan After the $23,101 $22,753
Accelerated Death Benefit is Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Death Benefit After the Accelerated Death Benefit is $64,028 $34,310
Paid
------------------------------------------------------ ------------------------- -------------------------
------------------------------------------------------ ------------------------- -------------------------
Guaranteed Minimum Death Benefit After the $25,668 $25,281
Accelerated Death Benefit is Paid
------------------------------------------------------ ------------------------- -------------------------
-------------------------------------------------------------------------------------------------------------------
APPENDIX C
Net Single Premium Factors for Determination of Required Death Benefit
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 .145794 .179648 .128227 .145820 .142549 .173641
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 .150168 .184901 .132462 .150638 .146904 .178832
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 .154741 .190376 .136853 .155637 .151450 .184239
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 .159531 .196117 .141415 .160816 .156205 .189896
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 .164555 .202134 .146147 .166184 .161181 .195813
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 .169822 .208454 .151056 .171748 .166388 .202013
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 .175351 .215097 .156150 .177516 .171842 .208514
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 .181135 .222053 .161428 .183482 .177537 .215307
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 .187175 .229318 .166906 .189661 .183478 .222391
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 .193474 .236889 .172585 .196055 .189667 .229765
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 .200035 .244756 .178464 .202666 .196106 .237421
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 .206860 .252916 .184560 .209495 .202801 .245356
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 .213944 .261368 .190875 .216560 .209747 .253574
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 .221291 .270109 .197419 .223864 .216949 .262073
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 .228895 .279132 .204192 .231403 .224405 .270846
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 .236761 .288437 .211198 .239179 .232117 .279893
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 .244894 .298015 .218438 .247196 .240090 .289210
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 .253298 .307862 .225900 .255421 .248325 .298784
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 .261963 .317956 .233579 .263842 .256812 .308598
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 .270894 .328294 .241477 .272450 .265558 .318646
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 .280099 .338865 .249599 .281240 .274569 .328918
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 .289568 .349652 .257933 .290189 .283834 .339398
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 .299311 .360652 .266484 .299295 .293363 .350082
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 .309334 .371859 .275263 .308570 .303162 .360967
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 .319639 .383267 .284285 .318028 .313237 .372051
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 .330230 .394864 .293562 .327683 .323592 .383327
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 .341103 .406652 .303095 .337537 .334226 .394797
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 .352264 .418644 .312891 .347598 .345142 .406472
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 .363716 .430831 .322953 .357876 .356347 .418348
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 .375463 .443211 .333288 .368370 .367842 .430422
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 .387504 .455776 .343896 .379072 .379628 .442686
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 .399832 .468510 .354772 .389982 .391698 .455126
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 .412433 .481383 .365917 .401101 .404041 .467718
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 .425290 .494362 .377317 .412407 .416640 .480431
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 .438381 .507408 .388968 .423887 .429477 .493230
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 .451696 .520502 .400884 .435558 .442546 .506102
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 .465218 .533636 .413071 .447432 .455834 .519042
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 .478941 .546812 .425551 .459541 .469340 .532055
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 .492871 .560033 .438358 .471935 .483076 .545154
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 .506993 .573308 .451517 .484649 .497033 .558352
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 .521284 .586632 .465025 .497695 .511192 .571645
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 .535723 .599969 .478863 .511045 .525531 .584998
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 .550287 .613272 .492991 .524640 .540024 .598361
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 .564927 .626483 .507352 .538390 .554621 .611671
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 .579602 .639551 .521878 .552212 .569276 .624871
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 .594281 .652440 .536544 .566075 .583957 .637926
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 .608944 .665153 .551348 .579988 .598650 .650837
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 .623584 .677704 .566315 .593989 .613350 .663624
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 .638205 .690127 .581486 .608159 .628069 .676329
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 .652797 .702445 .596895 .622553 .642805 .688977
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 .667333 .714642 .612535 .637176 .657534 .701560
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 .681762 .726681 .628356 .651974 .672204 .714037
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 .696014 .738497 .644271 .666812 .686743 .726330
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 .709994 .750004 .660165 .681560 .701053 .738348
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 .723624 .761135 .675927 .696097 .715050 .750016
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 .736865 .771831 .691482 .710345 .728690 .761272
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 .749724 .782071 .706791 .724284 .741970 .772096
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 .762229 .791908 .721863 .737937 .754918 .782539
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 .774433 .801434 .736726 .751362 .767581 .792686
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 .786390 .810733 .751401 .764609 .780008 .802620
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 .798116 .819847 .765881 .777687 .792212 .812375
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
81 .809588 .828771 .780117 .790566 .804165 .821946
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
82 .820755 .837465 .794038 .803191 .815814 .831289
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
83 .831544 .845863 .807562 .815500 .827084 .840341
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
84 .841909 .853936 .820645 .827387 .837930 .849062
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
85 .851863 .861731 .833298 .838880 .848366 .857494
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
86 .861489 .869377 .845592 .850070 .858473 .865761
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
87 .870930 .877089 .857651 .861099 .868391 .874063
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
88 .880405 .885052 .869655 .872184 .878334 .882592
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
89 .890224 .893507 .881864 .883606 .888601 .891595
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
90 .900787 .902897 .894634 .895774 .899583 .901508
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
91 .912663 .913849 .908493 .909137 .911841 .912922
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
92 .926694 .927262 .924224 .924501 .926204 .926715
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
93 .944200 .944411 .943053 .943115 .943971 .944152
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
94 .967326 .967355 .967034 .967034 .967267 .967290
----------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
The Required Death Benefit is determined by treating the Account Value as if it
were a net single premium. We determine the Required Death Benefit by dividing
the Account Value by factors that are determined as of the Policy Date. These
factors vary by the attained Age, gender (where permitted) and risk class of the
Insured. Factors for joint life cases depend upon an actuarial derivation of the
applicable rate for both Insureds.
- --------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
APPENDIX D
Guaranteed Maximum Cost of Insurance Rates
-------------------------------------------------------------------------------------------------------------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 0.1401 0.1935 0.0842 0.0976 0.1289 0.1743
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 0.1384 0.1935 0.0859 0.0992 0.1279 0.1747
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 0.1359 0.1902 0.0867 0.1017 0.1261 0.1725
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 0.1326 0.1869 0.0884 0.1042 0.1238 0.1703
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 0.1293 0.1818 0.0900 0.1067 0.1214 0.1668
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 0.1251 0.1760 0.0917 0.1092 0.1184 0.1626
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 0.1226 0.1727 0.0942 0.1134 0.1169 0.1608
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 0.1209 0.1710 0.0959 0.1167 0.1159 0.1601
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 0.1201 0.1710 0.0984 0.1209 0.1157 0.1610
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 0.1201 0.1735 0.1017 0.1259 0.1164 0.1640
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 0.1209 0.1777 0.1042 0.1318 0.1176 0.1685
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 0.1234 0.1835 0.1076 0.1368 0.1202 0.1742
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 0.1268 0.1910 0.1109 0.1426 0.1236 0.1813
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 0.1318 0.2011 0.1151 0.1501 0.1284 0.1909
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 0.1376 0.2127 0.1201 0.1585 0.1341 0.2019
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 0.1443 0.2269 0.1259 0.1677 0.1406 0.2151
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 0.1518 0.2437 0.1343 0.1818 0.1483 0.2313
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 0.1618 0.2646 0.1443 0.1986 0.1583 0.2513
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 0.1727 0.2880 0.1551 0.2178 0.1692 0.2739
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 0.1844 0.3147 0.1668 0.2386 0.1808 0.2995
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 0.1986 0.3457 0.1810 0.2637 0.1950 0.3293
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 0.2136 0.3791 0.1960 0.2905 0.2101 0.3614
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 0.2295 0.4160 0.2111 0.3172 0.2258 0.3962
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 0.2470 0.4561 0.2261 0.3440 0.2428 0.4337
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 0.2662 0.5005 0.2412 0.3708 0.2612 0.4746
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 0.2880 0.5475 0.2579 0.3992 0.2819 0.5178
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 0.3114 0.5961 0.2754 0.4285 0.3042 0.5626
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 0.3365 0.6490 0.2946 0.4587 0.3281 0.6109
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 0.3641 0.7061 0.3147 0.4913 0.3542 0.6631
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 0.3942 0.7682 0.3373 0.5274 0.3828 0.7200
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 0.4285 0.8372 0.3624 0.5659 0.4153 0.7829
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 0.4679 0.9154 0.3900 0.6070 0.4523 0.8537
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 0.5131 1.0039 0.4218 0.6540 0.4948 0.9338
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 0.5651 1.1042 0.4570 0.7061 0.5435 1.0244
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 0.6230 1.2139 0.4930 0.7590 0.5970 1.1227
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 0.6876 1.3314 0.5316 0.8136 0.6564 1.2276
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 0.7582 1.4558 0.5701 0.8675 0.7205 1.3378
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 0.8330 1.5871 0.6079 0.9180 0.7879 1.4529
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 0.9163 1.7254 0.6456 0.9676 0.8621 1.5734
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 1.0098 1.8742 0.6884 1.0207 0.9454 1.7029
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 1.1143 2.0402 0.7388 1.0839 1.0391 1.8482
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 1.2308 2.2279 0.8010 1.1632 1.1447 2.0140
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 1.3652 2.4400 0.8784 1.2654 1.2676 2.2039
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 1.5176 2.6774 0.9735 1.3897 1.4085 2.4184
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 1.6872 2.9378 1.0806 1.5286 1.5656 2.6542
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 1.8733 3.2146 1.1962 1.6754 1.7375 2.9046
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 2.0752 3.5051 1.3162 1.8249 1.9229 3.1666
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 2.2920 3.8070 1.4388 1.9695 2.1207 3.4365
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 2.5282 4.1248 1.5659 2.1161 2.3349 3.7195
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 2.7908 4.4708 1.7076 2.2758 2.5731 4.0275
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 3.0886 4.8542 1.8742 2.4648 2.8444 4.3712
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 3.4298 5.2869 2.0777 2.7049 3.1578 4.7646
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 3.8253 5.7785 2.3279 2.9998 3.5238 5.2159
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 4.2749 6.3264 2.6285 3.3519 3.9432 5.7236
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 4.7716 6.9307 2.9757 3.7549 4.4096 6.2865
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 5.3054 7.5807 3.3649 4.1972 4.9140 6.8938
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 5.8727 8.2501 3.7879 4.6698 5.4519 7.5226
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 6.4695 8.9272 4.2435 5.1659 6.0199 8.1623
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 7.1000 9.6169 4.7391 5.6933 6.6228 8.8184
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 7.7848 10.3436 5.2913 6.2710 7.2806 9.5142
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 8.5472 11.1328 5.9234 6.9226 8.0163 10.2749
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
81 9.4095 12.0089 6.6558 7.6677 8.8520 11.1238
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
82 10.3922 12.9898 7.5074 8.5225 9.8078 12.0784
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
83 11.4945 14.0624 8.4777 9.5196 10.8830 13.1353
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
84 12.6988 15.1933 9.5594 10.6131 12.0621 14.2583
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
85 13.9806 16.3456 10.7444 11.7893 13.3240 15.4156
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
86 15.3265 17.4918 12.0280 13.0418 14.6570 16.5839
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
87 16.7180 18.6836 13.4123 14.3609 16.0470 17.8021
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
88 18.1509 19.9424 14.9028 15.7562 17.4918 19.0893
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
89 19.6476 21.2120 16.5166 17.2301 19.0125 20.4012
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
90 21.2331 22.5117 18.2733 18.8930 20.6332 21.7761
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
91 22.9495 23.8839 20.2227 20.7186 22.3974 23.2417
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
92 24.8700 25.5022 22.4528 22.7883 24.3813 24.9527
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
93 27.2013 27.6222 25.1486 25.2821 26.7869 27.1492
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
94 30.4289 30.5976 28.7360 28.7360 30.0877 30.2221
------------ ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
- --------------------------------------------------------------------------------
The guaranteed maximum cost of insurance charge depends on the risk class of the
Insured(s). We base the guaranteed maximum charges on the sex distinct 1980
Commissioners Standard Ordinary Ultimate Mortality Table, age last birthday
unless unisex rates apply. The above amounts are per $1,000 amount at risk. Cost
of insurance charges for joint life cases depend upon an actuarial derivation of
the applicable rate for both insureds.
- --------------------------------------------------------------------------------
APPENDIX E
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
Gordon C. Boronow* Deputy Chief Executive Deputy Chief Executive
45 Officer and President Officer and President:
Director (since July, 1991) American Skandia Life
Assurance Corporation
Nancy F. Brunetti Director (since February, 1996) Executive Vice President and
36 Chief Operating Officer:
American Skandia Information
Services and Technology 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)
Lincoln R. Collins Executive Vice President and Executive Vice President
37 Chief Operating Officer and Chief Operating Officer:
Director (since February, 1996) 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 Deputy Chief Executive Officer Deputy Chief Executive Officer:
38 and Director (since July, 1991) American Skandia Life
Assurance Corporation;
President and Deputy
Chief Executive Officer:
American Skandia Marketing, Incorporated
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 Vice President, Vice President,
36 Controller 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,
35 Service Development Service Development:
American Skandia Life
Assurance Corporation
Rodney D. Runestad Vice President Vice President:
48 American Skandia Life
Assurance Corporation
Anders O. Soderstrom Director (since September, 1994) President and
38 Chief Information Officer:
American Skandia Information
Services and Technology Corporation
`
Amanda C. Sutyak Executive Vice President Executive Vice President
40 and Deputy Chief and Deputy Chief
Operating Officer, Operating Officer:
Director (since July, 1991) American Skandia Life
Assurance Corporation
C. Ake Svensson Treasurer, Vice President, Corporate
47 Director (since December, 1994) Controller and Treasurer:
American Skandia Investment
Holding Corporation
Mr. Svensson joined us in 1994. He previously held the position of Senior Vice
President with Nordenbanken.
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
Mr. Ulness joined us in 1994. He previously held the positions of Counsel at
North American Security Life Insurance Company from March, 1991 to July, 1994
and Associate at LeBoeuf, Lamb, Leiby, Green and MacRae from January, 1990 to
March 1991.
* Trustees of American Skandia Trust, one of the underlying mutual funds in
which the Sub-accounts offered pursuant to this Prospectus invest.
APPENDIX F
Financial Statements
[To be filed by amendment]
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
PART II - OTHER INFORMATION
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following papers and
documents:
The facing sheet.
The prospectus consisting of 53 pages.
Representations and Undertakings.
The signatures.
Written consents of the following persons:
Werner & Kennedy TO BE FILED BY AMENDMENT
Ernst & Young LLP TO BE FILED BY AMENDMENT
Deloitte & Touche, 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
October 17, 1997.
(2) Not applicable.
(3) Distributing contracts:
(a) Principal Underwriting Agreement incorporated by reference
to Registration Statement No. 333-38119 filed
October 17, 1997.
(b) Form of Dealer Agreement incorporated by reference to Post-
Effective Amendment No. 3 to Registration Statement No. 33-44436,
filed April 20, 1993.
Filed via EDGAR with Post-Effective Amendment No. 6 to Registration
Statement No. 33-87010, filed March 2, 1998.
(c) Not applicable.
(4) Not applicable.
(5) Form of Modified Single Premium Variable Life Insurance Policy
(a) Single Life version FILED HEREWITH
(b) Last Survivor version FILED HEREWITH
(6) Articles of Incorporation and By-laws of American Skandia Life Assurance
Corporation, incorporated by reference to Pre-Effective Amendment No. 2 to
Registration Statement No. 33-19363, filed July 27, 1988.
Filed via EDGAR with Post-Effective Amendment No. 6 to Registration Statement
No. 33-87010, filed March 2, 1998.
(7) Not applicable.
(8) Not applicable.
(9) Other material contracts.
TO BE FILED BY AMENDMENT
(10) Form of Application for Modified Single Premium Variable Life Insurance
Policy. TO BE FILED BY AMENDMENT
(11) Memorandum describing transfer and
redemption procedures is incorporated by
reference to Initial Registration Statement
No. 333-38119 filed October 17, 1997.
2. Opinion and Consent of Werner and Kennedy. 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. (a) Opinion and Consent of Ernst & Young LLP TO BE FILED BY AMENDMENT
(b) Opinion and Consent of Deloitte & Touche LLP TO BE FILED BY AMENDMENT
9. Powers of Attorney are incorporated by reference to
Registration Statement No. 333-38119 filed 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 this 4th day of March, 1998.
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
SEPARATE ACCOUNT F
(Registrant)
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(Depositor)
By:/s/Amanda C. Sutyak Attest: /s/Kathleen A. Chapman
Amanda C. Sutyak, Kathleen A. Chapman,
Executive Vice President Assistant Corporate Secretary
and Deputy 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, 03/04/98
Jan R. Carendi Chairman of the Board and Director
(Principal Financial Officer)
/s/Thomas M. Mazzaferro Executive Vice President and 03/04/98
Thomas M. Mazzaferro Chief Financial Officer
(Principal Accounting Officer)
/s/David R. Monroe Vice President and 03/04/98
David R. Monroe 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.