Registration No. 333-
Registration No. 811-4235
Fiscal Year End December 31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------
FORM S-6
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933 [X]
OF SECURITIES OF UNIT
INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
-----------------
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO.
-----------------
MONY AMERICA VARIABLE ACCOUNT L
(Exact Name of Trust)
MONY LIFE INSURANCE COMPANY OF AMERICA
(Name of Depositor)
1740 Broadway
New York, New York 10019
(Address of Principal Executive Office)
Haroula K. Ballas, Esq.
Counsel, Operations
MONY Life Insurance Company
1740 Broadway
New York, New York 10019
(Name and Address of Agent for Service)
-----------------
Approximate date of proposed public offering: 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)(l)
[_] on pursuant to paragraph (a)(l) of rule 485.
If appropriate, check the following box:
[_]this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
TITLE OF SECURITIES BEING REGISTERED: Flexible Premium Last Survivor
Variable Universal Life Insurance Policies
Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until Registrant shall file a
further amendment which specifically states that this Registration Statement
shall become effective in accordance with Section 8(a) of the Securities Act of
1933 or until this Registration Statement shall become effective on such date
as the Commission, acting pursuant to said Section 8(a), may determine.
STATEMENT PURSUANT TO RULE 24f-2
The Registrant registers an indefinite number or amount of its variable life
insurance contracts under the Securities Act of 1933 pursuant to Rule 24f-2
under the Investment Company Act of 1940.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2
Item No. of
Form N-8B-2 Caption in Prospectus
----------- ---------------------
1 Cover Page
2 Cover Page
3 Not Applicable
4 DISTRIBUTION OF THE POLICY
5 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
6 MONY America Variable Account L
7 Not required
8 Not required
9 Legal Proceedings
10 THE POLICY; INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT; CHARGES AND DEDUCTIONS; OTHER
INFORMATION; VOTING OF FUND SHARES; MORE ABOUT THE
POLICY
11 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE FUNDS; PURCHASE OF PORTFOLIO SHARES BY THE
VARIABLE ACCOUNT
12 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE FUNDS; PURCHASE OF PORTFOLIO SHARES BY THE
VARIABLE ACCOUNT
13 THE POLICY; CHARGES AND DEDUCTIONS; THE FUNDS
14 THE POLICY
15 THE POLICY
16 THE FUNDS; THE POLICY; INFORMATION ABOUT THE COMPANY AND
THE VARIABLE ACCOUNT
17 THE POLICY
18 THE FUNDS; THE POLICY; INFORMATION ABOUT COMPANY AND THE
VARIABLE ACCOUNT
19 VOTING OF FUND SHARES; MORE ABOUT THE POLICY
20 Not applicable
21 THE POLICY
22 Not applicable
23 Not applicable
24 IMPORTANT TERMS; MORE ABOUT THE POLICY
25 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
26 Not applicable
27 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
28 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
29 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
30 Not applicable
31 Not applicable
32 Not applicable
33 Not applicable
34 Not applicable
35 MORE ABOUT THE POLICY
36 Not applicable
37 Not applicable
38 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
MORE ABOUT THE POLICY
Item No. of
Form N-8B-2 Caption in Prospectus
----------- ---------------------
39 MORE ABOUT THE POLICY
40 Not applicable
41 MORE ABOUT THE POLICY
42 Not applicable
43 Not applicable
44 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE POLICY;
MORE ABOUT THE POLICY
45 Not applicable
46 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
47 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
48 Not applicable
49 Not applicable
50 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
51 Cover Page; INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT; THE POLICY; MORE ABOUT THE POLICY
52 OTHER INFORMATION
53 OTHER INFORMATION
54 Not applicable
55 Not applicable
56 Not required
57 Not required
58 Not required
59 FINANCIAL STATEMENTS
Prospectus
Dated January 14, 2002
Last Survivor Flexible Premium Variable
Universal Life Insurance Policy
Issued By
MONY Life Insurance Company of America
MONY America Variable Account L
MONY Life Insurance Company of America (the "Company") issues the last survivor
variable universal life insurance policy described in this prospectus. Among
the policy's many terms are:
Allocation of Premium and Cash Values:
. You can tell us what to do with your premium payments. You can also tell us
what to do with the cash values your policy may create for you resulting from
those premium payments.
. You can tell us to place some or all of them into a separate account. That
separate account is called the MONY America Variable Account L.
. If you do, you can also tell us to place your premium payments and cash
values into any of the 35 different subaccounts of MONY America Variable
Account L. Each of these subaccounts seeks to achieve a different
investment objective. If you tell us to place your premium payments and
cash values into one or more subaccounts of the separate account, you bear
the risk that the investment objectives will not be met. That risk
includes not earning any money on your premium payments and cash values
and also that premium payments and cash values may lose some or all of
their value.
. You can also tell us to place some or all of your premium payments and
cash values into our account. Our account is called the Guaranteed
Interest Account. If you do, we will guarantee that those premium payments
will not lose any value. We also guarantee that we will pay not less than
4.5% interest annually. We may pay more than 4.5% if we choose. Premium
payments and cash values you place into the Guaranteed Interest Account
become part of our assets.
Death Benefit:
. We will pay a death benefit if the last surviving insured dies before
reaching age 100 while the Policy is in effect. That death benefit will never
be less than the amount specified in the Policy. It may be greater than the
amount specified if the policy's cash values increase.
Living Benefits:
. You may ask for some or all of the policy's cash value at any time. If you
do, we may deduct a surrender charge. You may borrow up to 90% of the
policy's cash value from us at any time. You will have to pay interest to us
on the amount borrowed.
Charges and Fees:
. The policy allows us to deduct certain charges from the cash value. These
charges are detailed in the policy and in this prospectus.
These are only some of the terms of the policy.
Please read the prospectus carefully for more complete details of the policy.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense. This prospectus comes with prospectuses for The Alger
American Fund, Enterprise Accumulation Trust, INVESCO Variable Investment
Funds, Inc., Janus Aspen Series, Lord Abbett Series Fund, MFS(R) Variable
Insurance Trust/SM/, MONY Series Fund, Inc., PBHG Insurance Series Fund, PIMCO
Variable Insurance Trust and The Universal Institutional Funds, Inc. You should
read these prospectuses carefully and keep them for future reference.
MONY America Variable Account L
MONY Life Insurance Company of America
1740 Broadway, New York, New York 10019
1-800-487-6669
Table of Contents
Page
----
Summary Of The Policy............................................ 1
Important Policy Terms.......................................... 1
Purpose of the Policy........................................... 1
Policy Premium Payments and Values.............................. 2
Charges and Deductions.......................................... 3
Fees and Expenses of the Funds.................................. 5
The Death Benefit............................................... 9
Premium Features................................................ 10
MONY America Variable Account L................................. 10
Allocation Options.............................................. 10
Transfer of Fund Value.......................................... 11
Policy Loans.................................................... 11
Full Surrender.................................................. 11
Partial Surrender............................................... 11
Right to Return Policy Period................................... 11
Grace Period and Lapse.......................................... 11
Tax Treatment of Increases in Fund Value........................ 12
Tax Treatment of Death Benefit.................................. 12
Riders.......................................................... 12
Contacting the Company.......................................... 13
Understanding the Policy........................................ 13
Information About The Company And MONY America Variable Account L 14
MONY Life Insurance Company of America.......................... 14
MONY America Variable Account L................................. 14
The Funds........................................................ 19
MONY Series Fund, Inc........................................... 19
Enterprise Accumulation Trust................................... 20
Dreyfus Stock Index Fund........................................ 22
The Dreyfus Socially Responsible Growth Fund, Inc............... 22
Fidelity Variable Insurance Products Fund....................... 23
Fidelity Variable Insurance Products Fund II.................... 23
Fidelity Variable Insurance Products Fund III................... 23
Janus Aspen Series.............................................. 24
Purchase of Portfolio Shares by MONY America Variable Account L. 24
Detailed Information About The Policy............................ 25
Application for a Policy........................................ 25
Right to Examine a Policy -- Right to Return Policy Period...... 27
Premiums........................................................ 27
Allocation of Net Premiums...................................... 30
Death Benefits under the Policy................................. 30
Death Benefit Options........................................... 30
Changes in Specified Amount..................................... 33
Changes in Additional Term Life Insurance Amount................ 34
Guaranteed Death Benefit Riders................................. 35
Guaranteed Death Benefit to Age 100 Rider....................... 36
i
Page
----
Other Optional Insurance Benefits......................... 36
Benefits at Maturity...................................... 37
Policy Values............................................. 38
Determination of Fund Value............................... 38
Calculating Unit Values for Each Subaccount............... 39
Determining Fund Value.................................... 40
Transfer of Fund Value.................................... 40
Right to Exchange Policy.................................. 41
Policy Loans.............................................. 41
Full Surrender............................................ 42
Partial Surrender......................................... 42
Grace Period and Lapse.................................... 43
Charges And Deductions..................................... 46
Deductions from Premiums.................................. 47
Daily Deduction from MONY America Variable Account L...... 47
Monthly Deductions from Fund Value........................ 48
Surrender Charge.......................................... 49
Corporate Purchasers...................................... 50
Transaction and Other Charges............................. 50
Fees and Expenses of the Funds............................ 50
Guarantee of Certain Charges.............................. 50
Other Information.......................................... 51
Federal Income Tax Considerations......................... 51
Charge for Company Income Taxes........................... 55
Voting of Fund Shares..................................... 55
Disregard of Voting Instructions.......................... 56
Report to Policy Owners................................... 56
Substitution of Investments and Right to Change Operations 56
Changes to Comply with Law................................ 57
Performance Information.................................... 57
The Guaranteed Interest Account............................ 58
General Description....................................... 58
Death Benefit............................................. 59
Policy Charges............................................ 59
Transfers................................................. 59
Surrenders and Policy Loans............................... 59
More About The Policy...................................... 60
Ownership................................................. 60
Beneficiary............................................... 60
Notification and Claims Procedures........................ 60
Payments.................................................. 61
Payment Plan/Settlement Provisions........................ 61
Payment in Case of Suicide................................ 61
Assignment................................................ 61
Errors on the Application................................. 62
Incontestability.......................................... 62
Policy Illustrations...................................... 62
ii
Page
----
Distribution of the Policy... 62
More About The Company........ 63
Management................... 63
State Regulation............. 65
Telephone Transfer Privileges 65
Legal Proceedings............ 65
Legal Matters................ 65
Registration Statement....... 66
Independent Accountants...... 66
Financial Statements......... 66
Index to Financial Statements. F-1
Appendix A.................... A-1
Appendix B.................... B-1
Appendix C.................... C-1
Appendix D.................... D-1
iii
Summary of the Policy
This summary provides you with a brief overview of the more important
aspects of your policy. It is not intended to be complete. More detailed
information is contained in this prospectus on the pages following this Summary
and in your policy. This summary and the entire prospectus, will describe the
part of the policy involving MONY America Variable Account L. The prospectus
also briefly will describe the Guaranteed Interest Account. The Guaranteed
Interest Account is also described in your policy. Before purchasing a policy,
we urge you to read the entire prospectus carefully.
Important Policy Terms
We are providing you with definitions for the following terms to make the
description of the policy provisions easier for you to understand.
Outstanding Debt -- The unpaid balance of any loan which you request on the
policy. The unpaid balance includes accrued loan interest which is due and has
not been paid by you.
Loan Account -- An account to which amounts are transferred from the
subaccounts of MONY America Variable Account L and the Guaranteed Interest
Account as collateral for any loan you request. We will credit interest to the
Loan Account at a rate not less than 4.5%. The Loan Account is part of the
Company's General Account.
Fund Value -- The sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L and the Guaranteed Interest
Account and the loan account.
Cash Value -- The Fund Value of the policy less any surrender charge and any
Outstanding Debt.
Minimum Monthly Premium -- The amount the Company determines is necessary to
keep the policy in effect for the first three policy years, regardless of
subaccount cash values.
Guaranteed Interest Account -- This account is part of the general account
of MONY Life Insurance Company of America (the "Company"). You may allocate all
or a part of your net premium payments to this account. This account will
credit you with a fixed interest rate (which will not be less than 4.5%)
declared by the Company. (For more detailed information, see "The Guaranteed
Interest Account," page 59.)
Loan Account -- An account set up by the Company to which amounts are
transferred from the subaccounts and the Guaranteed Interest Account as
collateral for any Outstanding Debt.
Specified Amount -- The death benefit requested by the policy owner.
Business Day -- Each day that the New York Stock Exchange is open for
trading.
Purpose of the Policy
The policy offers insurance protection on the lives of the insureds. If
either or both insureds are alive on the anniversary of the policy date when
the younger insured is (or would have been) age 100, a maturity benefit will be
paid instead of a death benefit. The policy provides a benefit equal to your
choice of (a) its Specified Amount (under Option 1) or (b) its Specified Amount
plus the Fund Value (under Option 2). The policy also provides surrender and
loan privileges. The policy offers a choice of investment alternatives and an
opportunity for the policy's Fund Value and its death benefit to grow based on
investment results. In addition, you, as the owner of the policy, choose the
amount and frequency of premium payments, within certain limits.
1
Policy Premium Payments and Values
The premium payments you make for the policy are received by the Company.
From those premium payments the Company makes deductions to pay premium and
other taxes imposed by state and local governments. The Company makes
deductions to cover the cost to the Company of a deferred acquisition tax
imposed by the United States government. The Company will also deduct a sales
charge to cover the costs of making the policies available to the public. After
deduction of these charges, the amount remaining is called the net premium
payment.
You may allocate net premium payments among the various subaccounts of MONY
America Variable Account L and/or the Guaranteed Interest Account. As the owner
of the policy, you may give the right to allocate net premium payments to
someone else.
The net premium payments you allocate among the various subaccounts of MONY
America Variable Account L may increase or decrease in value on any day
depending on the investment experience of the subaccounts you select. Your
death benefit may or may not increase or decrease depending on several factors
including the death benefit option you chose. Except in certain circumstances
described later (See "Death Benefits Under the Policy" at page 31), the death
benefit will never decrease below the Specified Amount of your policy.
Net premium payments you allocate to the Guaranteed Interest Account will be
credited with interest at a rate determined by the Company. That rate will not
be less than 4.5%.
The value of the net premium payments you allocate to MONY America Variable
Account L and to the Guaranteed Interest Account are called the Fund Value.
There is no guarantee that the policy's Fund Value and death benefit will
increase. You bear the risk that the net premiums and Fund Value allocated to
MONY America Variable Account L may be worth more or less while the policy
remains in effect.
If you cancel the policy and return it to the Company during the Right to
Return Period, your premium payments will be returned by the Company. After the
Right to Return Period, you may cancel your policy by surrendering it to the
Company. The Company will pay you the Fund Value minus a charge if you cancel
your policy during the first ten years since the policy was issued or the
Specified Amount increased. The Company will also deduct any amount you have
borrowed from the amount it will pay you. The Fund Value minus surrender
charges and minus the amount of debt outstanding from loans you have received
is called the Cash Value of the policy.
Charges and fees such as the cost of insurance, administrative charges and
mortality and expense risk charges are imposed by the policy. These charges and
fees are deducted by the Company from the policy's Cash Value and are described
in further detail below.
The policy remains in effect until the earliest of:
. A grace period expires without the payment of sufficient additional
premium to cover policy charges or repayment of the Outstanding Debt;
. One or both insureds reaches age 100 (or the date on which the younger
insured would have been age 100);
. Death of the last surviving insured; and
. Full surrender of the policy.
Generally, the policy remains in effect only as long as the Cash Value is
sufficient to pay all monthly deductions. However, during the first three years
the policy is in effect, the Company will determine an amount
2
which if paid during those first three policy years will keep the policy and
all rider coverages in effect for the first three policy years even if the Cash
Value of the policy is zero. This amount is called the Minimum Monthly Premium.
If you increase the Specified Amount during the first three policy years, you
must pay the increased Minimum Monthly Premium for the remainder of the first
three policy years. A Guaranteed Death Benefit Rider is also available at the
time you purchase the policy. It will extend the time during which the
Specified Amount of the policy and most riders will not lapse. The Guaranteed
Death Benefit Rider requires the payment of an agreed upon amount of premium
and is discussed below.
Charges and Deductions
The policy provides for the deduction of the various charges, costs, and
expenses imposed by the policy provisions from the Fund Value of the Policy.
These deductions are summarized in the table below. Additional details can be
found on pages 48-51.
3
CHARGES AND DEDUCTIONS
Deductions from Premiums
---------------------------------------------------------------------------------------------------------
Sales Charge -- Varies based on the Specified First 10 policy years -- 6% of premiums paid up to
Amount in effect. It is a % of premium paid. Target Premium and 2% of premium paid in excess
of Target Premium.
Years 11 and later -- 2% of all premiums.
---------------------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.25%
---------------------------------------------------------------------------------------------------------
Daily Deduction from MONY America Variable Account L
---------------------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
---------------------------------------------------------------------------------------------------------
Monthly Deductions from Fund Value
---------------------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount at risk
at the beginning of the policy month
---------------------------------------------------------------------------------------------------------
Administrative Charge -- Monthly $7.50
---------------------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the first 10
Based on issue age and smoking Status of the policy years (or for 10 years from the date of any
younger insured and Specified Amount. increase in Specified Amount)
---------------------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of Specified Amount and certain
Monthly Charge for Guaranteed Death Rider amounts. Please note that the Rider requires
Benefit Rider* that at least the amount of premiums set forth in the
policy itself be paid in order to remain in effect.
---------------------------------------------------------------------------------------------------------
Optional Insurance Benefits Charge As applicable.
Monthly Deduction for any other optional insurance
Benefits added by rider.
---------------------------------------------------------------------------------------------------------
Transaction and Other Charges
- Partial Surrender Fee
- Transfer of Fund Value $10
(at Company's Option) $25 maximum per transfer/1/
---------------------------------------------------------------------------------------------------------
Surrender Charge See discussion of Surrender Charge on page 50 for
Grades from 100% to 0 over 11 years based on a grading schedule.
schedule. Factors per $1,000 of Specified Amount
vary based on issue age, gender, and underwriting
class.
---------------------------------------------------------------------------------------------------------
* The Guaranteed Death Benefit Rider is not available in all states.
/1/ Currently no charge on any transfers.
4
MONY Variable Account L is divided into subdivisions called subaccounts.
Each subaccount invests exclusively in shares of a designated portfolio. Each
portfolio pays a fee to its investment adviser to manage the portfolio. The
investment adviser fees for each portfolio are listed in the table below. Each
portfolio also incurs expenses in its operations. Those expenses are also shown
in the table below.
Fees and Expenses of the Funds
The Fund and each of its portfolios incur certain charges including the
investment advisory fee and certain operating expenses. These fees and expenses
vary by portfolio and are set forth below. Their Boards govern the Funds. The
advisory fees are summarized at pages 5-8. Fees and expenses of the Funds are
described in more detail in the Funds' prospectuses.
Information contained in the following table was provided by the respective
Funds and has not been independently verified by us.
Proforma Annual Expenses for the Year Ended December 31, 2000
(as a percentage of average net assets)
Distribution and
Management Other Service (12-b-1) Total
Fund/Portfolio Fees Expenses Fee Expenses
-------------- ---------- -------- ---------------- --------
The Alger American
Fund
Alger American
Balanced
Portfolio................................. 0.75% 0.13% 0% 0.88%
Alger American
Leveraged AllCap
Portfolio................................. 0.85% 0.05% 0% 0.90%
Alger American
MidCap Growth
Portfolio................................. 0.80% 0.04% 0% 0.84%
Enterprise
Accumulation
Trust/(1)/
Equity Income
Portfolio................................. 0.75% 0.13% 0% 0.88%
Global Socially
Responsive
Portfolio................................. 0.90% 0.40% 0% 1.30%
Growth Portfolio............................ 0.75% 0.08% 0% 0.83%
Growth and Income
Portfolio................................. 0.75% 0.10% 0% 0.85%
Managed Portfolio........................... 0.80% 0.02% 0% 0.82%
Small Company
Growth Portfolio.......................... 1.00% 0.11% 0% 1.11%
Small Company Value
Portfolio................................. 0.80% 0.09% 0% 0.89%
Total Return
Portfolio................................. 0.40% 0.25% 0% 0.65%
- -------------------------
------------
/(1)/Enterprise Capital Management, Inc. has contractually agreed to limit the
portfolios' expenses through May 1, 2002, to the following expense ratios:
Equity Income -- 1.05%; Global Socially Responsive -- 1.30%; Growth -- 1.15%;
Growth and Income -- 1.05%; Managed -- 1.05%; Small Company Growth -- 1.40%;
and Small Company Value -- 1.30%.
INVESCO Variable
Investment Funds,
Inc.
INVESCO VIF --
Financial
Services Fund............................. 0.75% 0.34% 0% 1.09%
INVESCO VIF --
Health Sciences
Fund...................................... 0.75% 0.32% 0% 1.07%
INVESCO VIF --
Telecommunications
Fund...................................... 0.75% 0.31% 0% 1.06%
Janus Aspen
Series-- Service
Shares
Capital
Appreciation
Portfolio................................. 0.65% 0.02% 0.25% 0.92%
Flexible Income
Portfolio................................. 0.65% 0.09% 0.25% 0.99%
International
Growth Portfolio.......................... 0.65% 0.06% 0.25% 0.96%
Lord Abbett Series
Fund-- Class VC
Bond-Debenture
Portfolio................................. 0.50% 0.35% 0% 0.85%
Growth and Income
Portfolio/(1)/............................ 0.50% 0.53% 0% 1.03%
Mid-Cap Value
Portfolio/(2)/............................ 0.75% 0.81% 0% 1.56%
- -------------------------
/(1)/Excludes expense waivers. With these waivers total Expenses would have been
1.02%.
/(2)/For fiscal year ended December 31, 2000 Lord Abbett waived its entire
management fee and subsidized the other expenses of the portfolio. Lord Abbett
may stop waiving the management fee and subsidizing the other expenses at any
time.
5
Proforma Annual Expenses for the Year Ended December 31, 2000
(as a percentage of average net assets)
Distribution and
Management Other Service (12-b-1) Total
Fund/Portfolio Fees Expenses Fee Expenses
-------------- ---------- -------- ---------------- --------
MFS(R) Variable
Insurance
Trust/SM(1)/--
Initial Class
MFS Mid Cap Growth
Series/(2)/.................................. 0.75% 0.15% 0% 0.90%
MFS New Discovery
Series/(2)/.................................. 0.90% 0.15% 0% 1.05%
MFS Total Return
Series....................................... 0.75% 0.15% 0% 0.90%
MFS Utilities
Series....................................... 0.75% 0.16% 0% 0.91%
- ----------------------------
------------
/(1)/Each series has an expense offset arrangement which reduces the series' custodian
fee based upon the amount of cash maintained by the series with its custodian and
dividend disbursing agent. Each series may enter into other such arrangements and
directed brokerage arrangements, which would also have the effect of reducing the
series' expenses. "Other Expenses" do not take into account these expense reductions,
and are therefore higher than the actual expenses of the series. Had these fee
reductions not been taken into account, "Total Expenses" would be higher for certain
series and would equal: 2.21% for Mid Cap Growth Series; 1.09% for New Discovery
Series; 0.90% for Total Return Series; and 0.91% for Utilities Series.
/(2)/MFS has contractually agreed, subject to reimbursement, to bear expenses for these
series such that each such series' "Other Expenses" (after taking into account the
expense offset arrangement described above), do not exceed the following percentages
of the average daily net assets of the series during the current fiscal year: 0.15%
for both Mid Cap Growth and New Discovery Series. These contractual fee arrangements
will continue until at least May 1, 2002, unless changed with the consent of the board
of trustees which oversees the series.
MONY Series Fund,
Inc./(1)/
Government
Securities
Portfolio/(2)/............................... 0.50% 0.11% 0% 0.61%
Long Term Bond
Portfolio.................................... 0.50% 0.09% 0% 0.59%
Money Market
Portfolio.................................... 0.40% 0.07% 0% 0.47%
- ----------------------------
------------
/(1)/MONY Life Insurance Company of America has contractually agreed to limit expenses on
these portfolios to the following amounts: Long Term Bond -- 0.75%; Government
Securities -- 0.75%; Money Market -- 0.50%. This contractual limitation is in effect
until April 30, 2002.
/(2)/Excludes expense reimbursements/reductions. With these reimbursements/reductions
total expenses would have been .60%.
PBHG Insurance
Series Fund
PBHG Mid-Cap Value
Portfolio.................................... 0.85% 0.35% 0% 1.20%
PBHG Select Value
Portfolio.................................... 0.65% 0.32% 0% 0.97%
- ----------------------------
------------
/(1)/For the fiscal year ended December 31, 2001, Pilgrim Baxter has contractually agreed
to waive that portion, if any, of the annual management fees payable by the portfolios
and to pay certain expenses of the portfolios to the extent necessary to ensure that
the total annual portfolio operating expenses do not exceed 1.20% and 1.00% for the
Mid-Cap Value Portfolio and the Select Value Portfolio, respectively. Without these
expense waivers, total expenses for the Mid-Cap Value Portfolio would have been 4.52%.
Pilgrim Baxter has agreed to maintain this expense limitation agreement until December
31, 2002. In any fiscal year in which the portfolios' total assets are greater than
$75 million and its total annual portfolio operating expenses are less than 1.20% and
1.00% for the Mid-Cap Value Portfolio and the Select Value Portfolio, respectively.
The portfolios' board of trustees may elect to reimburse Pilgrim Baxter for any fees
it waived or expenses it reimbursed on the portfolios' behalf during the previous two
fiscal years. In 2000, the board elected to reimburse $36,853 in waived fees, which
are included in the calculation of "Other Expenses" above for the Select Value
Portfolio. At the time of the election, the Portfolio had total assets in excess of
$93 million. To date, the board for the Mid-Cap Value Portfolio has made no
reimbursement election.
6
Proforma Annual Expenses for the Year Ended December 31, 2000
(as a percentage of average net assets)
Distribution and
Management Other Service (12-b-1) Total
Fund/Portfolio Fees Expenses Fee Expenses
-------------- ---------- -------- ---------------- --------
PIMCO Variable
Insurance Trust--
Administrative Class
Global Bond
Portfolio/(1)/............... 0.25% 0.65% 0% 0.90%
Real Return Bond
Portfolio.................... 0.25% 0.40% 0% 0.65%
StockPLUS Growth
and Income
Portfolio/(1)/............... 0.40% 0.25% 0% 0.65%
------------
/(1)/PIMCO has contractually agreed to reduce total annual portfolio operating
expenses for the Administrative Class shares to the extent they would exceed,
due to the payment of organizational expenses and trustees' fees, 0.65% of
average daily net assets for the StockPLUS Growth and Income Portfolio and
0.90% of average daily net assets for the Global Bond Portfolio. Under the
Expense Reimbursement Agreement, PIMCO may recoup these waivers and
reimbursements in future periods, not exceeding three years, provided total
expenses, including such recoupment, do not exceed the annual expense limit.
Without these expense limitations actual expenses would have been 0.66% for the
the StockPlus Portfolio and 1.18% for the Global Bond Portfolio.
The Universal
Institutional
Funds, Inc./(1)/
Emerging Markets
Equity Portfolio............. 1.25% 0.71% 0% 1.96%
Global Value Equity
Portfolio.................... 0.80% 0.63% 0% 1.43%
U.S. Real Estate
Portfolio.................... 0.80% 0.36% 0% 1.16%
------------
/(1)/The Adviser has voluntarily agreed to reduce its management fee and/or
reimburse the portfolios to the amounts shown. With these reimbursements and/or
fee waivers the total expenses would have been 1.80%, 1.15% and 1.11% for the
Emerging Markets Equity Portfolio, Global Value Equity Portfolio, U.S. Real
Estate Portfolio, respectively. Fee waivers and/or expense reimbursements are
voluntary and the advisor reserves the right to terminate any waiver and/or
reimbursement at any time without notice.
7
Fund Investment Adviser Fees
-------------------------------------------------------------------------------------------
The Alger American Fund
-------------------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
-------------------------------------------------------------------------------------------
Alger American Balanced Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Alger American Leverged AllCap Portfolio Annual rate of 0.85% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Alger American MidCap Growth Portfolio Annual rate of 0.80% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
-------------------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
-------------------------------------------------------------------------------------------
Equity Income Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Global Socially Responsive Portfolio Annual rate of 0.90% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Growth Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Growth and Income Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Managed Portfolio Annual rate of 0.80% of the first $400 million,
0.75% of the next $400 million, and 0.70% in
excess of $800 million of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Small Company Growth Portfolio Annual rate of 1.00% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Small Company Value Portfolio Annual rate of 0.80% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
Total Return Portfolio Annual rate of 0.65% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
INVESCO Variable Investment Funds, Inc.
-------------------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
-------------------------------------------------------------------------------------------
INVESCO VIF - Financial Services Fund Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
INVESCO VIF - Health Sciences Fund Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
INVESCO VIF - Telecommunications Fund Annual rate of 0.75% of the portfolio's average
daily net assets.
-------------------------------------------------------------------------------------------
8
Janus Aspen Series
--------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
--------------------------------------------------------------------------------
Capital Appreciation Portfolio Annual rate of 0.65% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
Flexible Income Portfolio Annual rate of 0.65% of the first $300 million;
and 0.55% in excess of $300 million of the
portfolio's average daily net assets.
--------------------------------------------------------------------------------
International Growth Portfolio Annual rate of 0.65% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
Lord Abbett Series Fund
--------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
--------------------------------------------------------------------------------
Bond-Debenture Portfolio Annual rate of 0.50% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
Growth and Income Portfolio Annual rate of 0.50% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
Mid-Cap Value Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
MFS(R) Variable Insurance Trust/SM/
--------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
--------------------------------------------------------------------------------
MFS Mid Cap Growth Series Annual rate of 0.75% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
MFS New Discovery Series Annual rate of 0.90% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
MFS Total Return Series Annual rate of 0.75% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
MFS Utilities Series Annual rate of 0.75% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------------
MONY Series Fund, Inc.
--------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
--------------------------------------------------------------------------------
Government Securities Portfolio Annual rate of 0.50% of the first $400 million,
0.35% of the next $400 million, and 0.30% in
excess of $800 million of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------
Long Term Bond Portfolio Annual rate of 0.50% of the first $400 million,
0.35% of the next $400 million, and 0.30% in
excess of $800 million of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Money Market Portfolio Annual rate of 0.40% of the first $400 million,
0.35% of the next $400 million, and 0.30% in
excess of $800 million of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------
9
PBHG Insurance Series Fund
---------------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
---------------------------------------------------------------------------------------
PBHG Mid-Cap Value Portfolio Annual rate of 0.85% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
PBHG Select Value Portfolio Annual rate of 0.65% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
PIMCO Variable Insurance Trust//
---------------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
---------------------------------------------------------------------------------------
Global Bond Portfolio Annual rate of 0.25% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
Real Return Bond Portfolio Annual rate of 0.25% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
StockPLUS Growth and Income Portfolio Annual rate of 0.40% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc.
---------------------------------------------------------------------------------------
Portfolio Investment Adviser Fee
---------------------------------------------------------------------------------------
Emerging Markets Equity Portfolio Annual rate of 1.25% of the first $500 million;
1.20% from $500 million to $1 billion; and
1.15% in excess of $1 billion of the portfolio's
average daily net assets.
---------------------------------------------------------------------------------------
Global Value Equity Portfolio Annual rate of 0.80% of the first $500 million;
0.75% from $500 million to $1 billion; and
0.70% in excess of $1 billion of the portfolio's
average daily net assets.
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
U. S. Real Estate Portfolio Annual rate of 0.80% of the first $500 million;
0.75% from $500 million to $1 billion; and
0.70% in excess of $1 billion of the portfolio's
average daily net assets.
The Death Benefit
The minimum initial Specified Amount is $100,000. You may elect one of two
options to compute the amount of death benefit payable under the policy. Your
selection may increase the death benefit.
Option 1 -- The death benefit equals the greater of:
(a) The Specified Amount plus Additional Term Life Insurance, if any, or
(b) Fund Value multiplied by a death benefit percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to age. If the Cash
Value Accumulation Test is chosen, the death benefit percentages vary
according to age, gender and smoking status.
If you choose Option 1, favorable investment performance will reduce the
cost you pay for the death benefit. This reduction will decrease the
deduction from Fund Value.
10
Option 2 -- The death benefit equals the greater of:
(a) The Specified Amount plus Additional Term Life Insurance, if any,
plus the Fund Value, or
(b) The Fund Value multiplied by a death benefit percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to age. If the Cash
Value Accumulation Test is chosen, the death benefit percentages vary
according to age, gender and smoking status.
If you choose Option 2, favorable investment performance will increase
the Fund Value of the policy which in turn increases insurance coverage.
The Fund Value used in these calculations is the value as of the date of the
last surviving insured's death.
You may change the death benefit option and increase or decrease the
Specified Amount, subject to certain conditions. See "Death Benefits Under the
Policy," page 31.
When you apply for insurance, you can purchase the Guaranteed Death Benefit
Rider. This rider provides a guarantee that the Specified Amount under the
policy and most rider coverages will remain in effect until the later of (a)
the insured's age 70, or (b) ten years from the date of the policy, regardless
of the policy's Cash Value. See "Guaranteed Death Benefit Rider," page 36.
Premium Features
You must pay premiums equal to at least the amount necessary to keep the
policy in effect for the first three policy years. After that, subject to
certain limitations, you may choose the amount and frequency of premium
payments as your situation and needs change.
When you apply for a policy, you determine the level amount you intend to
pay at fixed intervals over a specified period of time. You elect to receive a
premium notice on an annual, semiannual, or quarterly basis. However, you may
choose to skip or stop making premium payments. Your policy continues in effect
until the Cash Value can no longer cover (1) the monthly deductions from the
Fund Value for your policy, and (2) any optional insurance benefits added by
rider. You may pay premiums under the electronic funds transfer program. Under
this program, you authorize the Company to withdraw the amount you determine
from your checking account each month.
The amount, frequency and period of time over which you pay premiums may
affect whether or not the policy will be classified as a modified endowment
contract. You will find more information on the tax treatment of life insurance
contracts, including modified endowment contracts under "Federal Income Tax
Considerations," page 52.
The payment of premiums you specified on the application will not guarantee
that your policy will remain in effect. See "Grace Period and Lapse," page 44.
If any premium payment would result in an immediate increase in the net amount
at risk, the Company may, (1) reject a part of the premium payment, or (2)
limit the premium payment, unless you provide satisfactory evidence of
insurability.
MONY America Variable Account L
MONY America Variable Account L is a separate investment account whose
assets are owned by the Company. See "MONY America Variable Account L" on page
13.
Allocation Options
You may allocate premium payments and Fund Values among the various
subaccounts of MONY America Variable Account L. Each of the subaccounts uses
premium payments and Fund Values to purchase shares of a designated portfolio
of The Alger American Fund, Enterprise Accumulation Trust, INVESCO Variable
11
Investment Funds, Inc., Janus Aspen Series, Lord Abbett Series Fund, MFS(R)
Variable Insurance Trust/SM/, MONY Series Fund, Inc., PBHG Insurance Series
Fund, PIMCO Variable Insurance Trust, and The Universal Institutional Funds,
Inc. (the "Funds"). The subaccounts available to you and the investment
objectives of each available subaccount are described in detail beginning on
page 14.
Transfer of Fund Value
You may transfer Fund Value among the subaccounts. Subject to certain
limitations, you may also transfer between the subaccounts and the Guaranteed
Interest Account. Transfers may be made by telephone if the proper form has
been completed, signed and filed at the Company's Syracuse Operations Center.
See "Transfer of Fund Value," page 41.
Policy Loans
You may borrow up to 90% of your policy's Cash Value from the Company. Your
policy will be the only security required for a loan. See "Policy Loans," page
42.
The amount of Outstanding Debt is subtracted from your death benefit. Your
Outstanding Debt is repaid from the proceeds of a full surrender. See "Full
Surrender," page 43. Outstanding Debt may also affect the continuation of the
policy. See "Grace Period and Lapse," page 44. The Company charges interest on
policy loans. If you do not pay the interest due, the amount due will be
borrowed from the policy's Cash Value and will become part of the Outstanding
Debt.
Full Surrender
You can surrender the policy during the lifetime of either or both insureds
and receive its Cash Value, which equals (a) Fund Value, minus (b) any
surrender charge and minus (c) any Outstanding Debt. See "Full Surrender," page
43.
Partial Surrender
You may request a partial surrender if your Cash Value after the deduction
of the requested surrender amount and any fees is greater than $500. If the
requested amount exceeds the amount available, we will reject the request and
return it to you. A partial surrender will decrease the Specified Amount. See
"Partial Surrender," at page 44.
Partial surrenders must be for at least $500. A partial surrender fee of $10
will be assessed against the remaining Fund Value. There is no surrender charge
assessed on a partial surrender.
Right to Return Policy Period
You have the right to examine the policy when you receive it. You may return
the policy for any reason and obtain a full refund of the premium you paid if
you return your policy the later of: (a) 10 days (or longer in some states)
after you receive it; (b) 45 days after the date you sign the application for
the policy or (c) 10 days after we mail or deliver a notice of withdrawal
right. During the Right to Return Policy Period, net premiums will be kept in
the general account of the Company and will earn interest at an annual rate of
4.5%. See "Right to Examine a Policy -- Right to Return Policy Period", page
28.
Grace Period and Lapse
Your policy will remain in effect as long as:
(1) it has a Cash Value greater than zero;
(2) you have purchased the Guaranteed Death Benefit Rider, and you have
met all the requirements of that Rider; or
12
(3) during the first three policy years if on each monthly anniversary
the sum of the premiums paid minus the sum of partial surrenders (excluding
related fees) and any Outstanding Debt, is greater than or equal to the
Minimum Monthly Premium for the remainder of the first three policy years.
If you increase the Specified Amount during the first three policy years,
the Minimum Monthly Premium will be increased and you must continue paying the
Minimum Monthly Premium for an additional three policy years from the date of
the increase.
If the policy is about to terminate (or lapse), we will give you notice that
you must pay additional premiums. That notice will tell you what the minimum
amount you must pay is if the policy is to remain in effect and the date by
which we must receive that amount (this period is called the "grace period").
In addition, we calculate each month whether you have paid the premiums
required to be paid by your Guaranteed Death Benefit Rider or your Guaranteed
Death Benefit to Age 100 Rider. See "Guaranteed Death Benefit," page 35. If
your policy does not meet the test on that date, a notice will be sent to you
giving you 61 days from its date to make additional payments to the policy. See
"Grace Period and Lapse," page 44.
You must understand that after the first three policy years, the policy can
lapse even if the scheduled premiums are made unless you have made all the
premium payments required by the Guaranteed Death Benefit Rider or the
Guaranteed Death Benefit to Age 100 Rider.
Tax Treatment of Increases in Fund Value
The federal income tax laws generally tie the taxation of Fund Values to
your receipt of those Fund Values. This policy is currently subject to the same
federal income tax treatment as fixed life insurance. Certain policy loans may
be taxable. You can find information on the tax treatment of the policy under
"Federal Income Tax Considerations," on page 52.
Tax Treatment of Death Benefit
Generally, the death benefit will be fully excludable from the gross income
of the beneficiary under the Internal Revenue Code. Thus the death benefit
received by the beneficiary at the death of the insured will not be subject to
federal income taxes when received by the beneficiary. Also, a death benefit
paid by this policy is currently subject to federal income tax treatment as a
death benefit paid by a fixed life insurance policy. See "Federal Income Tax
Considerations," page 52.
Riders
Additional optional insurance benefits may be added to the policy by an
addendum called a rider. As applicable, a charge is deducted monthly from the
Fund Value for each optional benefit added to your policy. There are eight
riders available with this policy:
. Guaranteed Death Benefit Rider
. Guaranteed Death Benefit to Age 100 Rider
. Waiver of Monthly Deduction Rider
. Additional Term Life Insurance Rider
. Four Year Term Insurance Rider
. Waiver of Specified Premiums Rider
. Maturity Extension Rider
. Enhanced Maturity Extension Rider
Riders are available only in states where approval has been received.
13
Contacting the Company
All written requests, notices, and forms required by the policies, and any
questions or inquiries should be directed to the Company Operations Center at 1
MONY Plaza, Syracuse, New York 13202.
Understanding the Policy
The following chart may help you to understand how the policy works.
[FLOW CHART]
14
INFORMATION ABOUT THE COMPANY
AND MONY AMERICA VARIABLE ACCOUNT L
MONY Life Insurance Company of America
MONY Life Insurance Company of America issues the policy. In this prospectus
MONY Life Insurance Company of America is called the "Company". The Company is
a stock life insurance company organized in the State of Arizona. The Company
is currently licensed to sell life insurance and annuities in 49 states (not
including New York), the District of Columbia, Puerto Rico, and the U.S. Virgin
Islands.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). The principal offices of both MONY and the Company are located at
1740 Broadway, New York, New York 10019. MONY was organized as a mutual life
insurance company under the laws of the State of New York in 1842 as The Mutual
Life Insurance Company of New York. In 1998, The Mutual Life Insurance Company
of New York converted to a stock company through demutualization and was
renamed MONY Life Insurance Company. The demutualization does not have any
material effect on the Company under the policies or on MONY America Variable
Account L.
On August 16, 1999, the rating assigned to the Company by A.M. Best Company,
Inc., an independent insurance company rating organization, was upgraded to A
(Excellent). This rating is based upon an analysis of financial condition and
operating performance. The A.M. Best rating of the Company should be considered
only as bearing on the ability of the Company to meet its obligations under the
policies.
MONY Securities Corporation, a wholly-owned subsidiary of the Company, is
the principal underwriter for the policies.
MONY America Variable Account L
MONY America Variable Account L is a separate investment account of the
Company. Presently, only premium payments and fund values of flexible premium
variable life insurance policies are permitted to be allocated to MONY America
Variable Account L. The assets in MONY America Variable Account L are kept
separate from the general account assets and other separate accounts of the
Company.
The Company owns the assets in MONY America Variable Account L. The Company
is required to keep assets in MONY America Variable Account L that equal the
total market value of the policy liabilities funded by MONY America Variable
Account L. Realized or unrealized income gains or losses of MONY America
Variable Account L are credited or charged against MONY America Variable
Account L assets without regard to the other income, gains or losses of the
Company. Reserves and other liabilities under the policies are assets of MONY
America Variable Account L. MONY America Variable Account L assets are not
chargeable with liabilities of the Company's other businesses.
Fund Values of the policy during the Right to Return Period and Fund Values
allocated to the Guaranteed Interest Account are held in the Company's general
account. The Company's general account assets are subject to the liabilities
from the businesses the Company conducts. In addition, the Company may transfer
to its general account any assets that exceed anticipated obligations of MONY
America Variable Account L. All obligations of the Company under the policy are
general corporate obligations of the Company. The Company may accumulate in
MONY America Variable Account L proceeds from various policy charges and
investment results applicable to those assets.
MONY America Variable Account L was authorized by the Board of Directors of
the Company and established under Arizona law on February 19, 1985. MONY
America Variable Account L is registered with the SEC as a unit investment
trust. The SEC does not supervise the administration or investment practices or
policies of MONY America Variable Account L.
MONY America Variable Account L is divided into subdivisions called
subaccounts. Each subaccount invests exclusively in shares of a designated
portfolio of the Funds. For example, the Long Term Bond
15
Subaccount invests solely in shares of the MONY Series Fund, Inc. Long Term
Bond Portfolio. These portfolios serve only as the underlying investment for
variable annuity and variable life insurance contracts issued through separate
accounts of the Company or other life insurance companies. The portfolios may
also be available to certain pension accounts. The portfolios are not available
directly to individual investors. In the future, the Company may establish
additional subaccounts within MONY America Variable Account L. Future
subaccounts may invest in other portfolios of the Funds or in other securities.
Not all subaccounts are available to you.
The following table lists the subaccounts of MONY America Variable Account L
that are available to you, their respective investment objectives, and which
Fund portfolio shares are purchased:
Subaccount and Designated Portfolio Investment Objective
------------------------------------------------------------------------------------------------------------
Alger American Balanced Subaccount Seeks current income and long-term capital
appreciation. The portfolio focuses on stocks of
This subaccount purchases shares of The Alger companies with growth potential and fixed income
American Fund Alger American Balanced securities, with emphasis on income-producing
Portfolio. securities which appear to have some potential for
capital appreciation. Under normal circumstances,
the portfolio invests in common stocks and fixed-
income securities, which include commercial paper
and bonds rated within the 4 highest rating
categories by an established rating agency or if not
rated, which are determined by the Manager to be
of comparable quality. Ordinarily, at least 25% of
the Portfolio's net assets are invested in fixed-
income securities.
------------------------------------------------------------------------------------------------------------
Alger American Leveraged AllCap Subaccount Seeks long-term capital appreciation. Under normal
circumstances, the portfolio invests in the equity
This subaccount purchases shares of The Alger securities of companies of any size which
American Fund Alger American Leveraged AllCap demonstrate promising growth potential. The
Portfolio. portfolio can leverage, that is, borrow money, up to
one-third of its total assets to buy additional
securities. By borrowing money, the portfolio has
the potential to increase its returns if the increase in
the value of the securities purchased exceeds the
cost of borrowing, including interest paid on the
money borrowed.
------------------------------------------------------------------------------------------------------------
Alger American MidCap Growth Subaccount Seeks long-term capital appreciation. The portfolio
focuses on midsize companies with promising
This subaccount purchases shares of The Alger growth potential. Under normal circumstances, the
American Fund Alger American MidCap Growth portfolio invests primarily in the equity securities of
Portfolio. companies having a market capitalization within the
range of companies in the S&P MidCap(TM) Index.
------------------------------------------------------------------------------------------------------------
Enterprise Equity Income Subaccount Invests in a combination of growth and income.
Seeks to achieve an above average and consistent
This subaccount purchases shares of the Enterprise total return, primarily from investments in dividend
Accumulation Trust Equity Income Portfolio. paying U.S. common stocks.
16
Subaccount and Designated Portfolio Investment Objective
--------------------------------------------------------------------------------------------------------
Enterprise Global Socially Responsive Seeks total return primarily from investments in
Subaccount common stocks of companies that the portfolio
manager believes are socially responsive and that
This subaccount purchases shares of the Enterprise are located in countries that are included in the
Accumulation Trust Global Socially Responsive MSCI World Index.
Portfolio.
--------------------------------------------------------------------------------------------------------
Enterprise Growth Subaccount Seeks capital appreciation, primarily from
investments in U.S. common stocks of large
This subaccount purchases shares of the Enterprise capitalization companies. Pursues goal by investing
Accumulation Trust Growth Portfolio. in companies with long-term earnings potential, but
which are currently selling at a discount to their
estimated long-term value.
--------------------------------------------------------------------------------------------------------
Enterprise Growth and Income Subaccount Seeks total return through capital appreciation with
income as a secondary consideration by investing in
This subaccount purchases shares of the Enterprise a broadly diversified group of U.S. common stocks
Accumulation Trust Growth and Income Portfolio. of large capitalization companies.
--------------------------------------------------------------------------------------------------------
Enterprise Managed Subaccount Seeks growth of capital over time by investing in a
portfolio consisting of common stocks, bonds and
This subaccount purchases shares of the Enterprise cash equivalents, the percentages of which vary
Accumulation Trust Managed Portfolio. over time based on the investment manager's
assessment of economic and market trends and its
perception of the relative investment values
available from such types of securities at any given
time.
--------------------------------------------------------------------------------------------------------
Enterprise Small Company Growth Subaccount Seeks capital appreciation by investing primarily in
common stocks of small capitalization companies
This subaccount purchases shares of the Enterprise believed by the portfolio manager to have an
Accumulation Trust Small Company Growth outlook for strong earnings growth and potential for
Portfolio. significant capital appreciation.
--------------------------------------------------------------------------------------------------------
Enterprise Small Company Value Subaccount Seeks maximum capital appreciation by investing
primarily in common stocks of small capitalization
This subaccount purchases shares of the Enterprise companies that the portfolio manager believes are
Accumulation Trust Small Company Value undervalued -- that is the stock's market price does
Portfolio. not fully reflect the company's value.
--------------------------------------------------------------------------------------------------------
Enterprise Total Return Subaccount Seeks total return primarily from investments in a
diversified portfolio of fixed income instruments of
This subaccount purchases shares of the Enterprise varying maturities.
Accumulation Trust Total Return Portfolio.
--------------------------------------------------------------------------------------------------------
INVESCO VIF -- Financial Services Subaccount Seeks to provide capital growth by investing
primarily in equity securities of companies involved
This subaccount purchases shares of the INVESCO in the financial services sector.
Variable Investment Funds, Inc. INVESCO VIF --
Financial Services Fund.
--------------------------------------------------------------------------------------------------------
INVESCO VIF -- Health Sciences Subaccount Seeks to provide capital growth by investing
primarily in equity securities of companies that
This subaccount purchases shares of the INVESCO develop, produce or distribute products or services
Variable Investment Funds, Inc. INVESCO VIF -- related to health care.
Health Sciences Fund.
17
Subaccount and Designated Portfolio Investment Objective
--------------------------------------------------------------------------------------------------------
INVESCO VIF -- Telecommunications Seeks to provide capital growth and current income
Subaccount by investing primarily in the equity securities of
companies involved in the design, development,
This subaccount purchases shares of the INVESCO manufacture, distribution, or sale of
Variable Investment Funds, Inc. INVESCO VIF -- communications services and equipment, and
Telecommunications Fund. companies that are involved in supplying equipment
or services to such companies. Will invest primarily
in companies located in at least three different
countries, although U.S. issuers will often dominate
the portfolio.
--------------------------------------------------------------------------------------------------------
Janus Aspen Series Capital Appreciation Seeks long-term growth of capital. It pursues its
Subaccount objective by investing primarily in common stocks
selected for their growth potential. The portfolio
This subaccount purchases shares of Janus Aspen may invest in companies of any size, from larger,
Series Capital Appreciation Portfolio. well-established companies to smaller, emerging
growth companies.
--------------------------------------------------------------------------------------------------------
Janus Aspen Series Flexible Income Subaccount Seeks to obtain maximum total return, consistent
with preservation of capital. It pursues its objective
This subaccount purchases shares of the Janus by investing primarily in a wide variety of income-
Aspen Series Flexible Income Portfolio. producing securities such as corporate bonds and
notes, government securities and preferred stock.
As a fundamental policy, the portfolio will invest at
least 80% of its assets in income-producing
securities. The portfolio may own an unlimited
amount of high-yield/high-risk bonds.
--------------------------------------------------------------------------------------------------------
Janus Aspen Series International Growth Seeks long-term growth of capital. It pursues its
Subaccount objective by investing at least 65% of its total assets
in securities of issuers from at least five different
This subaccount purchases shares of the Janus countries, excluding the United States. Although the
Aspen Series International Growth Portfolio. portfolio intends to invest substantially all of its
assets in issuers located outside the United States it
may at times invest in U.S. issuers and it may at
times invest all of its assets in fewer than five
countries, or even a single country.
--------------------------------------------------------------------------------------------------------
Lord Abbett Bond-Debenture Subaccount Investment Objective and Strategy: seeks high
current income and the opportunity for capital
This subaccount purchases shares of the Lord appreciation to produce a high total return. It
Abbett Series Fund Bond-Debenture Portfolio. pursues its objective by investing in high yield and
investment grade debt securities, securities
convertible into common stock and preferred
stocks. The portfolio invests at least 65% of its total
assets in fixed income securities of various types.
At least 20% of the portfolio's assets must be
invested in any combination of investment grade
securities, U.S. Government securities and cash
equivalents.
--------------------------------------------------------------------------------------------------------
18
Subaccount and Designated Portfolio Investment Objective
------------------------------------------------------------------------------------------------------------
Lord Abbett Growth and Income Subaccount Investment Objective and Strategy: seeks long-term
growth of capital and income without excessive
This subaccount purchases shares of the Lord fluctuations in market value. It pursues its objective
Abbett Series Fund Growth and Income Portfolio. by investing at least 65% of its total assets in large,
seasoned, U.S. and multinational companies.
------------------------------------------------------------------------------------------------------------
Lord Abbett Mid-Cap Value Subaccount Investment Objective and Strategy: seeks capital
appreciation. It pursues its objective by investing at
This subaccount purchases shares of the Lord least 65% of its total assets in equity securities of
Abbett Series Fund Mid-Cap Value Portfolio. mid-sized companies, with market capitalizations of
roughly $500 million to $10 billion.
------------------------------------------------------------------------------------------------------------
MFS Mid Cap Growth Subaccount Seeks long-term growth of capital by investing at
least 65% of its total assets in companies with
This subaccount purchases shares of the MFS(R) medium market capitalization which are defined as
Variable Insurance Trust/SM/ MFS Mid Cap Growth companies with market capitalizations equaling or
Series. exceeding $250 million but not exceeding the top of
the Russell Midcap(TM) Growth Index range at the
time of purchase by the portfolio.
------------------------------------------------------------------------------------------------------------
MFS New Discovery Subaccount Seeks capital appreciation by investing at least 65%
of its total assets in equity securities of emerging
This subaccount purchases shares of the MFS(R) growth companies. Emerging growth companies are
Variable Insurance Trust/SM/ MFS New Discovery companies that are either: early in their life cycle
Series. but which have the potential to become major
enterprises or major enterprises whose rates of
earnings growth are expected to accelerate because
of special factors, such as rejuvenated management,
new products, changes in consumer demand, or
basic changes in the economic environment.
------------------------------------------------------------------------------------------------------------
MFS Total Return Subaccount Seeks mainly to provide above-average income
consistent with the prudent employment of capital
This subaccount purchases shares of the MFS(R) and secondarily to provide a reasonable opportunity
Variable Insurance Trust/SM/ MFS Total Return for growth of capital and income. It pursues its
Series. objective by investing at least 40%, but not more
than 75%, of its net assets in common stocks and
related securities and at least 25% of its net assets in
non-convertible fixed income securities.
------------------------------------------------------------------------------------------------------------
MFS Utilities Subaccount Seeks capital growth and current income by
investing at least 65% of its total assets in equity
This subaccount purchases shares of the MFS(R) and debt securities of domestic and foreign
Variable Insurance Trust/SM/ MFS Utilities Series. companies (including emerging markets) in the
utilities industry.
------------------------------------------------------------------------------------------------------------
MONY Government Securities Subaccount Seeks to maximize income and capital appreciation
by investing in bonds, notes and other obligations
This subaccount purchases shares of the MONY either issued or guaranteed by the U.S.
Series Fund, Inc. Government Securities Portfolio. Government, its agencies or instrumentalities,
together having a weighted average maturity of
between 4 to 8 year.
------------------------------------------------------------------------------------------------------------
19
Subaccount and Designated Portfolio Investment Objective
-------------------------------------------------------------------------------------------------------------
MONY Long Term Bond Subaccount Seeks to maximize income and capital appreciation
over the longer term by investing in highly-rated
This subaccount purchases shares of the MONY fixed income securities issued by a diverse mix of
Series Fund, Inc. Long Term Bond Portfolio. corporations, the U.S. Government and its agencies
or instrumentalities, as well as mortgage-backed
and asset-backed securities together having a dollar-
weighted average maturity of more than 8 years.
-------------------------------------------------------------------------------------------------------------
MONY Money Market Subaccount Seeks to maximize current income consistent with
preservation of capital and maintenance of liquidity
This subaccount purchases shares of the MONY by investing primarily in high quality, short-term
Series Fund, Inc. Money Market Portfolio. money market instruments.
-------------------------------------------------------------------------------------------------------------
Morgan Stanley Universal Institutional Seeks long-term capital appreciation by investing
Emerging Markets Equity Subaccount primarily in growth-oriented equity securities of
issuers in emerging market countries.
This subaccount purchases shares of The Universal
Institutional Funds, Inc. Emerging Markets Equity
Portfolio.
-------------------------------------------------------------------------------------------------------------
Morgan Stanley Universal Institutional Global Seeks long-term capital appreciation by investing
Value Equity Subaccount primarily in equity securities of issuers throughout
the world, including U.S. issuers.
This subaccount purchases shares of The Universal
Institutional Funds, Inc. Global Value Equity
Portfolio.
-------------------------------------------------------------------------------------------------------------
Morgan Stanley Universal Institutional U.S. Real Seeks to provide above average current income and
Estate Subaccount long-term capital appreciation by investing
primarily in equity securities of companies in the
This subaccount purchases shares of The Universal U.S. real estate industry, including real estate
Institutional Funds, Inc. U. S. Real Estate Portfolio. investment trusts.
-------------------------------------------------------------------------------------------------------------
PBHG Mid-Cap Value Subaccount Seeks to provide above-average total return over a 3
to 5 year market cycle by primarily investing in
This subaccount purchases shares of the PBHG value common stocks of companies with market
Insurance Series Fund PBHG Mid-Cap Value capitalizations within the range of the S&P
Portfolio. MidCap 400(TM) Index.
-------------------------------------------------------------------------------------------------------------
PBHG Select Value Subaccount Seeks to provide long-term growth of capital and
income by primarily investing in value stocks of no
This subaccount purchases shares of the PBHG more than 30 companies with large market
Insurance Series Fund PBHG Select Value capitalizations. Current income is a secondary
Portfolio. objective.
-------------------------------------------------------------------------------------------------------------
PIMCO Global Bond Subaccount Seeks to maximize total return, consistent with
preservation of capital, by investing primarily in
This subaccount purchases shares of the PIMCO Fixed Income Instruments of issuers located in at
Variable Insurance Trust Global Bond Portfolio. least three countries (one of which may be the
United States).
-------------------------------------------------------------------------------------------------------------
20
Subaccount and Designated Portfolio Investment Objective
---------------------------------------------------------------------------------------------------
PIMCO Real Return Bond Subaccount Seeks to maximize real return, consistent with
preservation of real capital, by investing primarily
This subaccount purchases shares of the PIMCO in inflation-indexed bonds of varying maturities
Variable Insurance Trust Real Return Bond issued by the U.S. and non-U.S. governments, their
Portfolio. agencies or government-sponsored enterprises and
corporations.
---------------------------------------------------------------------------------------------------
PIMCO StockPLUS Growth and Income Seeks total return which exceeds the total return of
Subaccount the S&P 500 by investing primarily in S&P 500
derivatives, backed by a portfolio of Fixed Income
This subaccount purchases shares of the PIMCO Instruments.
Variable Insurance Trust StockPLUS Growth and
Income Portfolio.
---------------------------------------------------------------------------------------------------
THE FUNDS
Each available subaccount of MONY America Variable Account A will invest
only in the shares of the Funds. The Funds (except for Janus Aspen Series
Capital Appreciation Portfolio) are diversified, open-end management investment
companies. The Janus Aspen Series Capital Appreciation Portfolio is a
non-diversified, open-end management investment company. The Funds are
registered with the SEC under the Investment Company Act of 1940. These
registrations do not involve supervision by the SEC of the management or
investment practices or policies of the Funds. The Funds, or any of them, may
withdraw from sale any or all the respective portfolios as allowed by
applicable law.
The Alger American Fund
Fred Alger Management, Inc., is each portfolio's investment adviser. The
investment adviser is responsible for managing each portfolio's assets
according to its goal and for placing orders with broker-dealers to purchase
and sell securities on behalf of each portfolio. The investment adviser fee for
each portfolio is shown in the table below.
Portfolio Investment Adviser Fee
------------------------------------------------------------------------------------------
Alger American Balanced Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
------------------------------------------------------------------------------------------
Alger American Leveraged AllCap Portfolio Annual rate of 0.85% of the portfolio's average
daily net assets.
------------------------------------------------------------------------------------------
Alger American MidCap Growth Portfolio Annual rate of 0.80% of the portfolio's average
daily net assets.
21
Enterprise Accumulation Trust
Enterprise Accumulation Trust has a number of portfolios. The shares of some
of the portfolios can be purchased by the subaccounts available to you.
Enterprise Capital Management, Inc. ("Enterprise Capital"), a wholly owned
subsidiary of MONY Life Insurance Company, is the investment adviser of
Enterprise Accumulation Trust. Enterprise Capital is responsible for the
overall management of the portfolios, including meeting the investment
objectives and policies of the portfolios. Enterprise Capital contracts with
sub-investment advisers to assist in managing the portfolios. For information
about the sub-advisers for each portfolio, see the Enterprise Accumulation
Trust prospectus included in this Prospectus Portfolio. Enterprise Accumulation
Trust pays an investment adviser fee to Enterprise Capital which in turn pays
the sub-investment advisers. Fees are deducted daily and paid to Enterprise
Capital on a monthly basis. The sub-investment adviser and daily investment
adviser fees and sub-investment adviser fees for each portfolio are shown in
the table below:
Portfolio and Sub-Investment Adviser Investment Adviser Fee Sub-Investment Adviser Fee
-----------------------------------------------------------------------------------------------------
Equity Income Portfolio Annual rate of 0.75% of the Annual rate of 0.30% of the first
portfolio's average daily net $100 million, 0.25% of the next
1740 Advisers, Inc. (affiliate assets. $100 million, and 0.20% in
of MONY Life Insurance excess of $200 million of the
Company of America) is the portfolio's average daily net
sub-investment adviser. assets.
-----------------------------------------------------------------------------------------------------
Global Socially Responsive Annual rate of 0.90% of the Annual rate of 0.45% of the first
Portfolio portfolio's average daily net $100 million; 0.40% of the next
assets. $100 million; and 0.30% in
Rockefeller & Co., Inc. excess of $200 million of the
portfolio's average daily net
assets.
-----------------------------------------------------------------------------------------------------
Growth Portfolio Annual rate of 0.75% of the Annual rate of 0.30% of the first
portfolio's average daily net $1 billion and 0.20% in excess of
Montag & Caldwell, Inc. is the assets. $1 billion of the portfolio's
sub-investment adviser. average daily net assets.
-----------------------------------------------------------------------------------------------------
Growth and Income Portfolio Annual rate of 0.75% of the Annual rate of 0.30% of the first
portfolio's average daily net $100 million, 0.25% of the next
Retirement System Investors, assets. $100 million, and 0.20% in
Inc. is the sub-investment excess of $200 million of the
adviser. portfolio's average daily net
assets.
22
Portfolio and Sub-Investment Adviser Investment Adviser Fee Sub-Investment Adviser Fee
------------------------------------------------------------------------------------------------------------
Managed Portfolio Annual rate of 0.80% of the first Wellington Management
$400 million, 0.75% of the next Company's fee for the assets of
Wellington Management $400 million and 0.70% in excess the Portfolio it manages is an
Company, LLP and Sanford C. of $800 million of the portfolio's annual rate of 0.40% up to $500
Bernstein & Co., Inc. are the average daily net assets. million, 0.35% of the next $500
sub-investment advisers. million, 0.30% of the next $1
billion, and 0.25% in excess of $2
billion of the portfolio's average
daily net assets. Sanford C.
Bernstein & Co., Inc.'s fee for the
assets of the Portfolio it manages
is an annual rate of 0.40% up to
$10 million, 0.30% from $10
million to $50 million, 0.20%
from $50 million to $100 million,
and 0.10% in excess of $100
million of the portfolio's average
daily net assets.
------------------------------------------------------------------------------------------------------------
Small Company Growth Annual rate of 1.00% of the Annual rate of 0.65% of the first
Portfolio portfolio's average daily net $50 million, 0.55% of the next
assets. $50 million and 0.45% in excess
William D. Witter, Inc. is the of $100 million of the portfolio's
sub-investment adviser. average daily net assets.
------------------------------------------------------------------------------------------------------------
Small Company Value Portfolio Annual rate of 0.80% of the first Annual rate of 0.40% of the first
$400 million, 0.75% of the next $1 billion and 0.30% in excess of
Gabelli Asset Company is the $400 million and 0.70% in excess $1 billion of the portfolio's
sub-investment adviser. of $800 million of the portfolio's average daily net assets.
average daily net assets.
------------------------------------------------------------------------------------------------------------
Total Return Portfolio Annual rate of 0.65% of the Annual rate of 0.25% of the
portfolio's average daily net portfolio's average daily net
Pacific Investment assets. assets.
Management Company is the
sub-investment adviser.
INVESCO Variable Investment Funds, Inc.
INVESCO Funds Group, Inc. is the investment adviser for each of the
portfolios. Together with affiliated companies, the investment adviser directs
all aspects of the management of the portfolios. The investment adviser fee for
each portfolio is shown in the table below.
Portfolio Investment Adviser Fee
---------------------------------------------------------------------------------------
INVESCO VIF -- Financial Services Fund Annual rate of 0.75% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
INVESCO VIF -- Health Sciences Fund Annual rate of 0.75% of the portfolio's average
daily net assets.
---------------------------------------------------------------------------------------
INVESCO VIF -- Telecommunications Fund Annual rate of 0.75% of the portfolio's average
daily net assets.
23
Janus Aspen Series
Janus Aspen Series has several portfolios. The shares of some of the
portfolios can be purchased by the subaccounts available to you. Janus Capital
is the investment adviser to each of the portfolios and is responsible for the
day-to-day management of the investment portfolios and other business affairs
of the portfolios. The daily investment adviser fee for each portfolio is shown
in the table below.
Portfolio Investment Adviser Fee
-----------------------------------------------------------------------------------
Capital Appreciation Portfolio Annual rate of 0.65% of the portfolio's average
daily net assets.
-----------------------------------------------------------------------------------
Flexible Income Portfolio Annual rate of 0.65% of the first $300 million; and
0.55% in excess of $300 million of the portfolio's
average daily net assets.
-----------------------------------------------------------------------------------
International Growth Portfolio Annual rate of 0.65% of the portfolio's average
daily net assets.
Lord Abbett Series Fund
Lord Abbett Series Fund has several portfolios. The shares of the portfolios
listed in the table below can be purchased by the subaccounts available to you.
Lord, Abbett & Co. is the investment adviser to each of the portfolios and
manages the investments of each of the portfolios. The investment adviser fee
is shown in the table below.
Portfolio Investment Adviser Fee
----------------------------------------------------------------------------
Bond-Debenture Portfolio Annual rate of 0.50% of the portfolio's average
daily net assets.
----------------------------------------------------------------------------
Growth and Income Portfolio Annual rate of 0.50% of the portfolio's average
daily net assets.
----------------------------------------------------------------------------
Mid-Cap Value Portfolio Annual rate of 0.75% of the portfolio's average
daily net assets.
24
MFS(R) Variable Insurance Trust/SM/
MFS Variable Insurance Trust contains a number of portfolios. The shares of
some of the portfolios can be purchased by the subaccounts available through
our product. Massachusetts Financial Services Company is the investment adviser
to each of the portfolios and manages the investments of each of the
portfolios. The investment adviser fee is shown in the table below.
Portfolio Investment Adviser Fee
--------------------------------------------------------------------------
MFS Mid Cap Growth Series Annual rate of 0.75% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------
MFS New Discovery Series Annual rate of 0.90% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------
MFS Total Return Series Annual rate of 0.75% of the portfolio's average
daily net assets.
--------------------------------------------------------------------------
MFS Utilities Series Annual rate of 0.75% of the portfolio's average
daily net assets.
MONY Series Fund, Inc.
MONY Series Fund, Inc. has a number of portfolios. The shares of some of the
portfolios can be purchased by the subaccounts available to you. Each of the
portfolios has different investment objectives and policies. The Company is a
registered investment adviser under the Investment Advisers Act of 1940. The
Company, as investment adviser, currently pays the compensation of the Fund's
directors, officers, and employees who are affiliated in some way with the
Company. MONY Series Fund, Inc. pays for all other expenses including, for
example, the calculation of the net asset value of the portfolios. To carry out
its duties as an investment adviser, the Company has entered into a Services
Agreement with MONY to provide personnel, equipment, facilities and other
services. As the investment adviser to MONY Series Fund, Inc., the Company
receives a daily investment adviser fee for each portfolio (see chart below).
Fees are deducted daily and paid to the Company monthly.
The following table describes the portfolios available and the investment
advisory fees:
Portfolio Investment Adviser Fee
------------------------------------------------------------------------------------
Government Securities Portfolio Annual rate of 0.50% of the first $400 million,
0.35% of the next $400 million, and 0.30% in
excess of $800 million of the portfolio's aggregate
average daily net assets.
------------------------------------------------------------------------------------
Long Term Bond Portfolio Annual rate of 0.50% of the first $400 million,
0.35% of the next $400 million, and 0.30% in
excess of $800 million of the portfolio's aggregate
average daily net assets.
------------------------------------------------------------------------------------
Money Market Portfolio Annual rate of 0.40% of the first $400 million,
0.35% of the next $400 million, and 0.30% of assets
in excess of $800 million of the portfolio's
aggregate average daily net assets.
25
PBHG Insurance Series Fund
PBHG Insurance Series Fund has a number of portfolios. The shares of some of
the portfolios can be purchased by the subaccounts available to you. Pilgrim
Baxter & Associates, Ltd. is the investment adviser for each of the portfolios.
Pilgrim Baxter Value Investors, Inc., a wholly-owned subsidiary of Pilgrim
Baxter & Associates, Ltd., is the sub-investment adviser for the Mid-Cap and
Select Value Portfolios. The investment adviser fees and sub-investment adviser
fees for each portfolio are shown in the table below.
Portfolio and Investment Sub-Adviser Investment Adviser Fee Sub-Investment Adviser Fee
-------------------------------------------------------------------------------------------------
PBHG Mid-Cap Value Annual rate of 0.85% of the Annual rate of 0.50% of the
Portfolio portfolio's average daily net portfolio's average daily net
Pilgrim Baxter & Associates, assets. assets.
Ltd. is the investment adviser.
Pilgrim Baxter Value Investors,
Inc. is the sub-investment
adviser.
-------------------------------------------------------------------------------------------------
PBHG Select Value Portfolio Annual rate of 0.65% of the Annual rate of 0.40% of the
Pilgrim Baxter & Associates, portfolio's average daily net portfolio's average daily net
Ltd. is the investment adviser. assets. assets.
Pilgrim Baxter Value Investors,
Inc. is the sub-investment
adviser.
PIMCO Variable Insurance Trust
PIMCO Variable Insurance Trust has a number of portfolios. The shares of
some of the portfolios can be purchased by the subaccounts available to you.
Pacific Investment Management Company LLC is the investment adviser for the
portfolios and is responsible for managing the investment activities of the
portfolios and the portfolios' business affairs and other administrative
matters. The investment adviser fee for each portfolio is shown in the table
below.
Portfolio Investment Adviser Fee
----------------------------------------------------
Global Bond Portfolio Annual rate of 0.25% of
the portfolio's average
dailynet assets.
----------------------------------------------------
Real Return Bond Annual rate of 0.25% of
Portfolio the portfolio's average
dailynet assets.
----------------------------------------------------
StockPLUS Growth and Annual rate of 0.40% of
Income Portfolio the portfolio's average
dailynet assets.
26
The Universal Institutional Funds, Inc.
Morgan Stanley Asset Management is the investment adviser to each of the
portfolios and manages the investments of each of the portfolios. The
investment adviser fee is shown in the table below.
Portfolio Investment Adviser Fee
----------------------------------------------------
Emerging Markets Equity Annual rate of 1.25% of
Portfolio the first $500
million;1.20% from $500
million to $1 billion;
and 1.15% inexcess of $1
billion of the
portfolio's average
dailynet assets.
----------------------------------------------------
Global Value Equity Annual rate of 0.80% of
Portfolio the first $500
million;0.75% from $500
million to $1 billion;
and 0.70% inexcess of $1
billion of the
portfolio's average
dailynet assets.
----------------------------------------------------
U. S. Real Estate Annual rate of 0.80% of
Portfolio the first $500
million;0.75% from $500
million to $1 billion;
and 0.70% inexcess of $1
billion of the
portfolio's average
dailynet assets.
The investment objectives of each portfolio (except for the Janus
portfolios) are fundamental and may not be changed without the approval of the
holders of a majority of the outstanding shares of the portfolio affected. For
each of the Funds a majority means the lesser of:
(1) 67% of the portfolio shares represented at a meeting at which more than
50% of the outstanding portfolio shares are represented, or
(2) more than 50% of the outstanding portfolio shares.
The investment objectives of the Janus portfolios are non-fundamental and may
be changed by the Fund's Trustees without a shareholder vote.
Purchase of Portfolio Shares by MONY America Variable Account L
The Company purchases shares of each portfolio for the corresponding
sub-account at net asset value, i.e. without a sales load. Generally, all
dividends and capital gains distributions received from a portfolio are
automatically reinvested in the portfolio at net asset value. The Company, on
behalf of MONY America Variable Account L, may elect not to reinvest dividends
and capital gains distributions. The Company redeems Fund shares at net asset
value to make payments under the Policies.
Fund shares are offered only to insurance company separate accounts. The
insurance companies may or may not be affiliated with the Company or with each
other. This is called "shared funding." Shares may also be sold to separate
accounts to serve as the underlying investments for variable life insurance
policies and variable annuity policies and qualified plans. This is called
"mixed funding." Currently, the Company does not foresee any disadvantages to
policy owners due to mixed or shared funding. However, differences in tax
treatment or other considerations may at some time create conflict of interests
between owners of various contracts. The Company and the Boards of Directors of
the Funds, and any other insurance companies that participate in the Funds are
required to monitor events to identify material conflicts. If there is a
conflict because of mixed or shared funding, the Company might be required to
withdraw the investment of one or more of its separate accounts from the Fun
ds. This might force the Funds to sell securities at disadvantageous prices.
27
The investment objectives of each of the portfolios is substantially similar
to the investment objectives of the subaccount which purchases shares of that
portfolio. A summary of the investment objective of each of the subaccounts
available to you is found in the chart on pages 14-18. No portfolio can assure
you that its objective will be achieved. You will find more detailed
information in the prospectus of each Fund that you received with this
prospectus. The Funds' prospectuses include information on the risks of each
portfolio's investments and investment techniques.
The Funds' Prospectuses Accompany This Prospectus And Should Be
Read Carefully Before Investing
DETAILED INFORMATION ABOUT THE POLICY
The Fund Value in MONY America Variable Account L and the Guaranteed
Interest Account provide many of the benefits of your policy. The information
in this section describes the benefits, features, charges, and other major
provisions of the policies and the extent to which those benefits depend upon
the Fund Value.
Application for a Policy
The policy design meets the needs of individuals by providing life insurance
coverage on two Insureds. A death benefit is payable when the last surviving
insured dies while the policy is in effect. A purchaser must complete an
application and personally deliver it to a licensed agent of the Company, who
is also a registered representative of MONY Securities Corporation ("MSC"). The
licensed agent submits the application to the Company. The policy may also be
sold through other broker-dealers authorized under the law and by MSC. A policy
can be issued on the lives of two insureds, each of whom is no older than age
85 with evidence of insurability that satisfies the Company. Each insured's age
is calculated as of his or her last birthday prior to the date of the policy.
The Company accepts the application subject to its underwriting rules, and may
request additional information or reject an application.
The minimum Specified Amount you may apply for is $100,000. Subsequent to
issue, the minimum Specified Amount is also $100,000. However, the Company
reserves the right to revise its rules at any time to require a different
minimum Specified Amount at issue for subsequently issued policies.
Each policy is issued with a policy date. The policy date is used to
determine the policy months and years, and policy monthly, quarterly,
semi-annual and annual anniversaries. The policy date is stated on page 1 of
the policy. The policy date will normally be the later of (1) the date that
delivery of the policy is authorized by the Company ("Policy Release Date"), or
(2) the policy date requested in the application. No premiums may be paid with
the application except under the temporary insurance procedures defined below.
Temporary Insurance Coverage
If you want insurance coverage before the Policy Release Date, and are more
than 15 days old and not more than 70 years old, you may be eligible for a
temporary insurance agreement. You must complete an application for the policy
and give it to the Company's licensed agent. The application contains a number
of questions about your health. Your eligibility for temporary coverage will
depend on your answers to those questions. In addition, you must complete and
sign the Temporary Insurance Agreement Form. You must also submit payment for
at least one Minimum Monthly Premium for the policy as applied for. Your
coverage under the Temporary Insurance Agreement starts on the date you sign
the form and pay the premium amount, or if later, the requested policy date.
See Premiums -- "Premium Flexibility," page 28.
28
Coverage under the Temporary Insurance Agreement ends (except for contracts
issued in Kansas) on the earliest of:
. the Policy Release Date, if the policy is issued as applied for;
. the 15th day after the Policy Release Date or the date the policy takes
effect, if the policy is issued other than as applied for;
. no later than 90 days from the date the Temporary Insurance Agreement is
signed;
. the 45th day after the form is signed if the insureds have not finished
the last required medical exam;
. 5 days after the Company sends notice to you that it declines to issue any
policy; and
. the date you tell the Company that the policy will be refused.
For contracts issued in Kansas, coverage under the Temporary Insurance
Agreement ends on the earliest of:
. the Policy Release Date, if the policy is issued as applied for;
. the 15th day after the Policy Release Date or the date the policy takes
effect, if the policy is issued other than as applied for;
. the date you tell the Company that the policy will be refused; and
. the day written notice of the declination and refund of premium is
provided to the applicant.
If both insureds die during the period of temporary coverage, the death
benefit will be:
(1) The insurance coverage applied for (including any optional riders) up
to $500,000,
less
(2) The deductions from premium and the monthly deduction due prior to
the date of death of the last surviving insured.
Premiums paid for temporary insurance coverage are held in the Company's
general account until the Policy Release Date. Except as provided below,
interest is credited on the premium (less any deductions from premiums) held in
the Company's general account. The interest rate will be set by the Company,
but will not be less than 4.5% per year. If the policy is issued and accepted,
these amounts will be applied to the policy. These premiums will be returned to
you (without interest) within 5 days after the earliest of:
(1) The date you tell the Company that the policy will be refused. Your
refusal must be (a) at or before the Policy Release Date, or (b) (if the
policy is authorized for delivery other than as applied for), on or before
the 15th day after the Policy Release Date; or
(2) the date on which coverage under the Temporary Insurance Agreement
ends other than because the applicant has died or the policy applied for is
issued or refused; or
(3) The date the Company sends notice to you declining to issue any
policy on the insureds.
Initial Premium Payment
Once your application is approved and you are issued a policy, the balance
of the first scheduled premium payment is payable. The scheduled premium
payment is specified in your policy and must be paid in full when your policy
is delivered. Your policy is effective the later of (1) acceptance and payment
of the scheduled premium payment, or (2) the policy date requested in the
application. Any premium balance remitted by you earns interest until the Right
to Return Policy Period has ended. The policy premium credited with interest
equals amounts in the general account under the Temporary Insurance Agreement,
plus interest credited minus deductions from premiums. The monthly deduction
due prior to or on the Policy Release Date will be made. If you request a
policy date which is later than the Policy Release Date, your premium will be
held in the general
29
account until the policy date. Premium held in the Company's general account
earns an interest rate set by the Company, but will not be less than 4.5% per
year. When the Right to Return Policy Period ends, the premium, plus any
interest credited by the Company, is allocated to the subaccounts of MONY
America Variable Account L or the Guaranteed Interest Account pursuant to your
instructions. (See "Right to Examine a Policy -- Right to Return Policy
Period," on page 28.)
Policy Date
The Company may approve the backdating of a policy. The policy may backdated
for not more than 6 months (a shorter period is required in certain states)
prior to the date of the application. Backdating can be to your advantage if it
lowers the insured's issue age and results in lower cost of insurance rates. If
the policy is backdated, the initial scheduled premium payment will include
sufficient premium to cover the extra charges for the backdating period. Extra
charges equal the monthly deductions for the period that the policy date is
backdated.
Risk Classification
Each insured is assigned to an underwriting (risk) class. Risk classes are
used in calculating the cost of insurance and certain rider charges. In
assigning insureds to underwriting classes, the Company will normally use the
medical or paramedical underwriting method. This method may require a medical
examination of the proposed insured. The Company may use other forms of
underwriting when it is considered appropriate.
Right to Examine a Policy -- Right to Return Policy Period
The Right to Return Policy Period runs for the later of (a) 10 days (or
longer in certain states) after you receive the policy; (b) 45 days after the
application is signed; or (c) 10 days after we mail or deliver a notice of
withdrawal right. During this period, you may cancel the policy and receive a
refund of the full amount of the premium paid.
Premiums
The policy is a flexible premium policy. The policy provides considerable
flexibility, subject to the limitations described below, to pay premiums at
your discretion.
Premium Flexibility
The Company requires you to pay an amount equal to at least the Minimum
Monthly Premium to put the policy in effect. If you want to pay premiums less
often than monthly, the premium required to put the policy in effect is equal
to the Minimum Monthly Premium multiplied by 12 divided by the frequency of the
scheduled premium payments. This Minimum Monthly Premium will be based upon:
1) The policy's Specified Amount,
2) Any riders added to the policy, and
3) Each insured's
a) Age,
b) Smoking status,
c) Gender (unless unisex cost of insurance rates apply, see "Monthly
Deductions From Fund Value -- Cost of Insurance," page 49), and
d) Underwriting class.
30
The Minimum Monthly Premium will be shown in the policy. Thereafter, subject
to the limitations described below, you may choose the amount and frequency of
premium payments to reflect your varying financial conditions.
The policy is guaranteed not to lapse during the first three policy years if
on each monthly anniversary the conditions previously described in "Summary of
the Policy" on page 2 are met. See also "Grace Period and Lapse," page 44.
Scheduled Premium Payments
When you apply for a policy, you determine a scheduled premium payment. This
scheduled premium payment provides for the payment of level premiums at fixed
intervals over a specified period of time. You will receive a premium reminder
notice for the scheduled premium payment amount on an annual, semiannual or
quarterly basis, at your option. The minimum scheduled premium payment equals
the Minimum Monthly Premium multiplied by 12 divided by the scheduled premium
payment frequency. Although reminder notices will be sent, you may not be
required to pay scheduled premium payments.
You must specify the subaccounts and/or Guaranteed Interest Account and the
percentage of scheduled premium payments to be allocated to those subaccounts
and/or Guaranteed Interest Account. If we do not receive a valid set of
allocation instructions from you, scheduled premiums will be allocated to the
Money Market Subaccount.
You may elect to make monthly premium payments by the electronic funds
transfer program. Based on your policy date, up to two Minimum Monthly Premiums
may be required to be paid in cash before premiums may be paid by electronic
funds transfer to the Company. Paying premiums by electronic funds transfer
requires you to authorize the Company to withdraw premiums from your checking
account each month.
Payment of the scheduled premium payments will not guarantee that your
policy will remain in effect. (See "Grace Period and Lapse" in the Summary and
on page 44.)
Choice of Definition of Life Insurance
Your policy offers two death benefit qualification tests, which we use to
calculate the minimum death benefit. You choose one of these tests on your
application. Once you choose a test, you cannot change it.
In general, you should choose the Cash Value Accumulation Test if you do not
want to limit the amount of premiums you can pay into your policy. If you want
to pay a premium that increases the net amount at risk, however, you need to
provide us with satisfactory evidence of insurability before we can increase
the death benefit.
The minimum death benefit will generally be smaller under the Guideline
Premium/Cash Value Corridor Test than under the Cash Value Accumulation Test
resulting in a greater long-term Fund Value. The Guideline Premium/Cash Value
Corridor Test can result in lower cost of insurance deductions in later years
because the net amount at risk is lower.
Cash Value Accumulation Test
If you choose the Cash Value Accumulation Test, your policy's minimum death
benefit is the minimum death benefit for your policy to qualify as life
insurance under Section 7702 of the Internal Revenue Code.
This test determines what the death benefit should be in relation to your
policy's Fund Value. In general, as your policy's Fund Value increases, the
death benefit must also increase to ensure that your policy qualifies as life
insurance under the tax code.
31
Under the test, a policy's death benefit must be large enough to ensure that
its cash surrender value is never larger than the net single premium that's
needed to fund future benefits under the policy. The net single premium under
your policy varies according to the age, sex and risk class of the person
insured by your policy. It's calculated using the guaranteed mortality charges
and an interest rate that is the greater of 4% or the rate guaranteed in your
policy at the time of issue. If the Cash Value Accumulation Test is selected, a
table of death benefit percentages representing the net single premium will be
in your policy.
Guideline Premium/Cash Value Corridor Test
If you choose the Guideline Premium/Cash Value Corridor Test, we calculate
the minimum death benefit for your policy to qualify as life insurance (under
Section 7702 of the Internal Revenue Code) by multiplying your policy's Fund
Value by a death benefit percentage.
You'll find a table of death benefit percentages in Appendix A and in your
policy. The death benefit percentage is based on the age of the person insured
by the policy. It is 250% when the insured is age 40 or younger, and reduces as
the person gets older.
Under this test, the total premiums you pay less withdrawals cannot exceed
your policy's guideline premium limit. You'll find a more detailed discussion
of the guideline premium limit in "Federal Income Tax Considerations --
Definition of Life Insurance" on page 52.
Modified Endowment Contracts
The amount, frequency and period of time over which you pay premiums may
affect whether your policy will be classified as a modified endowment contract.
A modified endowment contract is a type of life insurance policy subject to
different tax treatment than that given to a conventional life insurance
policy. The difference in tax treatment occurs when you take certain pre-death
distributions from your policy. See "Federal Income Tax Considerations --
Modified Endowment Contracts," page 53.
Unscheduled Premium Payments
Generally, you may make premium payments at any time and in any amount.
However, if the premium payment you wish to make exceeds the Scheduled Premium
payments for the policy, the Company may reject or limit any unscheduled
premium payment that would result in an immediate increase in the death benefit
payable. An immediate increase would occur if the policy's death benefit
exceeds the Specified Amount for the policy. The policy's death benefit would
exceed the Specified Amount of the policy if your Fund Value multiplied by the
death benefit percentage determined in accordance with the federal income tax
law definition of life insurance exceeds the Specified Amount. See "Death
Benefits Under the Policy," page 31 and "Federal Income Tax Considerations --
Definition of Life Insurance," page 52. However, such a premium may be accepted
if you provide us with satisfactory evidence of insurability. If satisfactory
evidence of insurability is not received the payment or a part of it may be
returned. In addition, all or a part of a premium payment will be rejected and
returned to you if it would exceed the maximum premium limitations prescribed
by the federal income tax law definition of life insurance.
Payments you send to us will be treated as premium payments, and not as
repayment of Outstanding Debt, unless you request otherwise. If you request
that the payment be treated as a repayment of Outstanding Debt, any part of a
payment that exceeds the amount of Outstanding Debt will be treated as a
premium payment. Applicable taxes and sales charges are only deducted from any
payment that constitutes a premium payment.
Premium Payments Affect the Continuation of the Policy
If you skip or stop paying premiums, the policy will continue in effect
until the Cash Value can no longer cover (1) the monthly deductions from the
Fund Value for the policy, and (2) the charges for any optional insurance
benefits added by rider. See "Grace Period and Lapse." page 44.
32
Your policy is guaranteed to remain in effect as long as:
(a) The Cash Value is greater than zero, or
(b) You have purchased the Guaranteed Death Benefit Rider or the
Guaranteed Death Benefit to Age 100 Rider and you have met all the
requirements of the applicable rider, or
(c) During the first three policy years, the Minimum Monthly Premium
requirements are satisfied, and if you increase the Specified Amount during
the first three policy years the increased Minimum Monthly Premium
requirements are satisfied for the remainder of the first three policy
years. If you elect the Guaranteed Death Benefit to Age 100 Rider, this
provision does not apply.
Allocation of Net Premiums
Net premiums may be allocated to any of the available subaccounts and to the
Guaranteed Interest Account. Allocations must be in whole percentages and no
allocation may be for less than 5% of a net premium. Allocation percentages
must sum to 100%.
You may change the allocation of net premiums at any time by submitting a
proper written request to the Company's administrative office at 1740 Broadway,
New York, New York, 10019. In addition, you may make changes in net premium
allocation instructions by telephone if a properly completed and signed
telephone transfer authorization form has been received by us at our Syracuse
Operations Center at 1 MONY Plaza, Syracuse, New York, 13202. The Company may
stop making available the ability to give net premium allocation instructions
by telephone at any time, but it will give you notice before doing so if we
have received your telephone transfer authorization form. See "Telephone
Transfer Privileges," page 66. Whether you give us instructions in writing or
by telephone, the revised allocation percentages will be effective within seven
days from receipt of notification.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 5% limit
on allocation percentages does not apply.
Death Benefits under the Policy
When your policy is issued, the initial amount of insurance ("Specified
Amount") is shown on the specification page of your policy. The minimum
Specified Amount is $100,000.
As long as the policy is in effect, the Company will, upon proof of death of
the surviving insured, pay death benefit proceeds to a named beneficiary. Death
benefit proceeds will consist of:
(1) The policy's death benefit, plus
(2) Any insurance proceeds provided by rider, less
(3) Any Outstanding Debt (and, if in the Grace Period, less any overdue
charges).
Death Benefit Options
You may select one of two death benefit Options: Option 1 or Option 2.
Generally, you designate the death benefit option in your application. If no
option is designated, the Company assumes Option 2 has been selected. Subject
to certain restrictions, you can change the death benefit option selected. As
long as your policy is in effect, the death benefit under either option will
never be less than the Specified Amount of your policy.
Option 1 -- The death benefit equals the greater of:
(a) the Specified Amount plus Additional Term Life Insurance, if any, or
(b) the Fund Value on the date of death multiplied by the death benefit
percentage.
33
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to attained age. If the
Cash Value Accumulation Test is chosen, the death benefit percentages vary
according to attained age, gender and smoking status. See "Federal Income
Tax Considerations -- Definition of Life Insurance," page 52. A table
showing the death benefit percentages is in Appendix A to this prospectus
and in your policy. If you seek to have favorable investment performance
reflected in increasing Fund Value, and not in increasing insurance
coverage, you should choose Option 1.
Option 2 -- The death benefit equals the greater of:
(a) The Specified Amount plus Additional Term Life Insurance, if any,
plus the Fund Value, or
(b) The Fund Value on the date of death multiplied by the death benefit
percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to attained age. If the
Cash Value Accumulation Test is chosen, the death benefit percentages vary
according to attained age, gender and smoking status. The death benefit
percentage is the same as that used for Option 1 and is stated in Appendix
A. The death benefit in Option 2 will always vary as Fund Value varies. If
you seek to have favorable investment performance reflected in increased
insurance coverage, you should choose Option 2.
The Fund Value used in these calculations is the value as of the date of
the surviving insured's death.
Examples of Options 1 and 2
The following examples demonstrate the determination of death benefits under
Options 1 and 2. The examples show four policies with the same Specified
Amount, but Fund Values and the Additional Term Life Insurance vary as shown.
It is assumed that both insureds are age 35, standard class, non-smoker at
issue. It is also assumed that the last surviving insured is age 70 at the time
of death and that there is no Outstanding Debt. The date of death is also
assumed to be on a monthly anniversary day.
Cash Value Accumulation Test
Policy 1 Policy 2 Policy 3 Policy 4
-------- -------- -------- --------
Specified Amount.................... $100,000 $100,000 $100,000 $100,000
Additional Term Life Insurance Rider $ 0 $ 0 $ 0 $ 75,000
Fund Value on Date of Death......... $ 35,000 $ 60,000 $ 90,000 $ 60,000
Death Benefit Percentage............ 183.6% 183.6% 183.6% 183.6%
Death Benefit under Option 1........ $100,000 $110,160 $165,240 $175,000
Death Benefit under Option 2........ $135,000 $160,000 $190,000 $235,000
Option 1, Policy 1: The death benefit equals $100,000 since the death benefit
is the greater of the Specified Amount ($100,000) or the Fund Value multiplied
by the death benefit percentage ($35,000 X 183.6% = $64,260).
Option 1, Policy 2 and 3: The death benefit is equal to the Fund Value
multiplied by the death benefit percentage since ($60,000 X 183.6% = $110,160
for Policy 2; $90,000 X 183.6% = $165,240 for Policy 3) is greater than the
Specified Amount ($100,000).
Option 1, Policy 4: The Death Benefit is equals $175,000 (the sum of the
Specified Amount plus the Additional Term Life Insurance), since the death
benefit is the greater of the Specified Amount plus the Additional Term Life
Insurance ($100,000 + $75,000 = $175,000) or the Fund Value multiplied by the
death benefit percentage ($60,000 X 183.6% = $110,160).
34
Option 2, Policy 1, 2, and 3: The death benefit equals the Specified Amount
plus the Fund Value ($100,000 + $35,000 = $135,000 for Policy 1; $100,000 +
$60,000 = $160,000 for Policy 2; and $100,000 + $90,000 = $190,000 for Policy
3) since it is greater than the Fund Value multiplied by the death benefit
percentage ($35,000 X 183.6% = $64,260 for Policy 1; $60,000 X 183.6% =
$110,160 for Policy 2; and $90,000 X 183.6% = $165,240 for Policy 3).
Option 2, Policy 4: The death benefit equals the Specified Amount plus the
Additional Term Life Insurance plus the Fund Value ($100,000 + $75,000 +
$60,000 = $235,000) since it is greater than the Fund Value multiplied by the
death benefit percentage ($60,000 X 183.6% = $110,160).
Guideline Premium/Cash Value Corridor Test
Cash Value Accumulation Test
Policy 1 Policy 2 Policy 3 Policy 4
-------- -------- -------- --------
Specified Amount.................... $100,000 $100,000 $100,000 $100,000
Additional Term Life Insurance Rider $ 0 $ 0 $ 0 $ 75,000
Fund Value on Date of Death......... $ 35,000 $ 60,000 $ 90,000 $ 60,000
Death Benefit Percentage............ 115% 115% 115% 115%
Death Benefit under Option 1........ $100,000 $100,000 $103,500 $175,000
Death Benefit under Option 2........ $135,000 $160,000 $185,000 $235,000
Option 1, Policy 1 and 2: The death benefit equals $100,000 since the death
benefit is the greater of the Specified Amount ($100,000) or the Fund Value
multiplied by the death benefit percentage ($35,000 X 115% = $40,250 for Policy
1 and $60,000 X 115% = $69,000 for Policy 2).
Option 1, Policy 3: The death benefit is equal to the Fund Value multiplied by
the death benefit percentage since ($90,000 X 115% = $103,500) is greater than
the Specified Amount ($100,000).
Option 1, Policy 4: The Death Benefit equals $175,000 (the sum of the Specified
Amount plus the Additional Term Life Insurance), since the death benefit is the
greater of the Specified Amount plus the Additional Term Life Insurance
($100,000 + $75,000 = $175,000) or the Fund Value multiplied by the death
benefit percentage ($60,000 X 115% = $69,000).
Option 2, Policy 1, 2, and 3: The death benefit equals the Specified Amount
plus the Fund Value ($100,000 + $35,000 = $135,000 for Policy 1; $100,000 +
$60,000 = $160,000 for Policy 2; and $100,000 + $90,000 = $190,000 for Policy
3) since it is greater than the Fund Value multiplied by the death benefit
percentage ($35,000 X 115% = $40,250 for Policy 1; $60,000 X 115% = $69,000 for
Policy 2; and $90,000 X 115% = $103,500 for Policy 3).
Option 2, Policy 4: The death benefit equals the Specified Amount plus the
Additional Term Life Insurance plus the Fund Value ($100,000 + $75,000 +
$60,000 = $235,000) since it is greater than the Fund Value multiplied by the
death benefit percentage ($60,000 X 115% = $69,000).
The Company pays death benefit proceeds to a beneficiary in a lump sum or under
a payment plan offered under the policy. The policy should be consulted for
details.
Changes in Death Benefit Option
You may request that the death benefit option under your policy be changed
from Option 1 to Option 2, or Option 2 to Option 1.
35
You may make a change by sending a written request to the Company's
administrative office. A change from Option 2 to Option 1 is made without
providing evidence of insurability. A change from Option 1 to Option 2 will
require that you provide satisfactory evidence of insurability. The effective
date of a change requested between monthly anniversaries will be the next
monthly anniversary day after the change is accepted by the Company.
If you change from Option 1 to Option 2 your policy's Specified Amount is
reduced by the amount of the policy's Fund Value at the date of the change.
This maintains the death benefit payable under Option 2 at the amount that
would have been payable under Option 1 immediately prior to the change. The
total death benefit will not change immediately. The change to Option 2 will
affect the determination of the death benefit from that point on. As of the
date of the change, the Fund Value will be added to the new specified Amount.
The death benefit will then vary with the Fund Value. This change will not be
permitted if it would result in a new Specified Amount of less than $100,000.
If you change from Option 2 to Option 1, the Specified Amount of the policy
will be increased by the amount of the policy's Fund Value at the date of the
change. This maintains the death benefit payable under Option 1 at the amount
that would have been payable under Option 2 immediately prior to the change.
The total death benefit will not change immediately. The change to Option 1
will affect the determination of the death benefit from that point on. The
death benefit will equal the Specified Amount (or if higher, the Fund Value
multiplied by the death benefit percentage). The change to Option 1 will
generally reduce the death benefit payable in the future.
A change in the death benefit option may affect the monthly cost of
insurance charge since this charge varies with the net amount at risk.
Generally, the net amount at risk is the amount by which the death benefit
exceeds Fund Value. See "Monthly Deductions From Fund Value -- Cost of
Insurance," page 49. If the policy's death benefit is not based on the death
benefit percentage under Option 1 or 2, changing from Option 2 to Option 1 will
generally decrease the net amount at risk. Therefore, this change may decrease
the cost of insurance charges. Changing from Option 1 to Option 2 will
generally result in a net amount at risk that remains level. However, such a
change will result in an increase in the cost of insurance charges over time.
This results because the cost of insurance rates increase with the insured's
age.
Changes in Specified Amount
You may request an increase or decrease in the Specified Amount under your
policy subject to Company approval. A change in the Specified Amount may be
made at any time after the policy is issued. Increases in Specified Amount are
not permitted on or after the older insured's age 85. Increases are also not
permitted if monthly deductions are being waived under the Waiver of Monthly
Deduction Rider or premiums are being waived under the Waiver of Specified
Premiums Rider. Increasing the Specified Amount will generally increase the
policy's death benefit. Decreasing the Specified Amount will generally decrease
the policy's death benefit. The amount of change in the death benefit depends
on (1) the death benefit option chosen, and (2) whether the death benefit under
the policy is being computed using the death benefit percentage at the time of
change. Changing the Specified Amount could affect the subsequent level of
policy values. For example, an increase in Specified Amount may increase the
net amount at risk, which will increase your cost of insurance charges over
time. Conversely, a decrease in Specified Amount may decrease the net amount at
risk, which may decrease your cost of insurance over time.
To increase or decrease the Specified Amount, send a written application to
the Company's administrative office. It will become effective on the monthly
anniversary day on or next following the Company's acceptance of your request.
If you are not the insured, the Company may also require the consent of the
insured before accepting a request.
Increases
An increase of Specified Amount requires that additional, satisfactory
evidence of insurability be provided to the Company.
36
When you request an increase in Specified Amount, a new "coverage segment"
is created for which cost of insurance and other charges are computed
separately. See "Charges and Deductions," page 38. In addition, the surrender
charge associated with your policy will increase. The surrender charge for the
increase is computed in a similar way as for the original Specified Amount. The
Minimum Monthly Premium and the required premiums under the Guaranteed Death
Benefit Rider or the Guaranteed Death Benefit to Age 100 Rider, if applicable,
will also be adjusted. The adjustment will be done prospectively to reflect the
increase. If the Specified Amount is increased when a premium payment is
received, the increase will be processed before the premium payment is
processed.
If an increase creates a new coverage segment of Specified Amount, Fund
Value after the increase will be allocated, (1) first to the original coverage
segment, and (2) second to each coverage segment in order of the increases.
Decreases
Any decrease in Specified Amount (whether requested by you or resulting from
a partial surrender or a death benefit option change) will be applied:
(1) To reduce the coverage segments of Specified Amount associated with
the most recent increases, then
(2) To the next most recent increases successively, and last
(3) To the original Specified Amount.
A decrease will not be permitted if the Specified Amount would fall below
$100,000.
The Minimum Monthly Premium will not be adjusted for the decrease in the
Specified Amount. If you have a Guaranteed Death Benefit Rider or a Guaranteed
Death Benefit to Age 100 Rider, it will be adjusted for the decrease in
Specified Amount. If the Specified Amount is decreased when a premium payment
is received, the decrease will be processed before the premium payment is
processed. Rider coverages may also be affected by a decrease in Specified
Amount.
The Company reserves the right to reject a requested decrease. Decreases
will not be permitted if:
(1) Compliance with the guideline premium limitations under federal tax
law resulting from the decrease would result in immediate termination of
your policy, or
(2) To effect the decrease, payments to you would have to be made from
Fund Value for compliance with the guideline premium limitations, and the
amount of the payments would exceed the Cash Value of your policy.
If a requested change is not approved, we will send you a written notice of our
decision. See "Federal Income Tax Considerations -- Definition of Life
Insurance," page 52.
Changes in Additional Term Life Insurance Amount
A change in the Additional Term Life Insurance amount may be made at any
time after your policy is issued. Changes will become effective on the monthly
anniversary day following the approval of the request to change the Additional
Term Life Insurance amount. Increases in the Additional Term Life Insurance
amount will be subject to evidence of insurability and will not be permitted
after the insured's age 85 (70 for qualified plans). Decreases on a policy with
the Additional Term Life Insurance Rider will be applied in the following
order:
. Against the most recent increase, regardless if it is Specified Amount
increase or Additional Term Life insurance increase;
37
. Against the next most recent increases successively, regardless if it is
Specified Amount increase or Additional Term Life Insurance increase
. Against Additional Term Life Insurance provided under the original
application; and
. Against insurance provided by the Specified Amount under the original
application.
Guaranteed Death Benefit
Guaranteed Death Benefit
Generally, your policy remains in effect so long as your policy has Cash
Value. Charges that maintain your policy are deducted monthly from Fund Value.
The Cash Value of your policy is affected by,
(1) the investment experience of any amounts in the subaccounts of MONY
America Variable Account L,
(2) the interest earned in the Guaranteed Interest Account, and
(3) the deduction from Fund Value of the various charges, costs, and
expenses imposed by the policy provisions.
This in turn affects the length of time your policy remains in force without
the payment of additional premiums. Therefore, coverage will last as long as
the Cash Value of your policy is sufficient to pay these charges. See "Grace
Period and Lapse," page 44.
When you apply for your policy you may be able to apply for the Guaranteed
Death Benefit Rider or the Guaranteed Death Benefit to Age 100 Rider. These
riders provide a death benefit (equal to the Specified Amount only of your
policy) and may keep certain rider coverages in effect under certain
circumstances, even if the Cash Value of the policy is zero on any monthly
anniversary date.
Riders
Subject to certain requirements and state approval optional insurance
benefits may be added when you apply for your policy. These optional benefits
are added to your policy by an addendum called a rider. As applicable a charge
is deducted monthly from the Fund Value for each optional benefit added to your
policy. See "Charges and Deductions," page 37. You can cancel these benefits at
any time. Certain restrictions may apply and are described in the applicable
rider. In addition, adding or canceling these benefits may have an effect on
your policy's status as a modified endowment contract. See "Federal Income Tax
Considerations -- Modified Endowment Contracts," page 53. An insurance agent
authorized to sell the policy can describe these extra benefits further.
Samples of the provisions are available from the Company upon written request.
From time to time we may make available riders other than those listed
below. Contact an insurance agent authorized to sell the policy for a complete
list of the riders available.
Guaranteed Death Benefit Rider
In order to remain in effect, the Guaranteed Death Benefit Rider requires
that you have paid a certain amount of premiums during the time that the rider
is in effect. This amount is described in the next paragraph. If the premiums
you have paid do not equal or exceed this amount, the rider will automatically
end. In addition, this rider will automatically end at the later of the
insured's age 70 or ten years from the policy date ("Guarantee Period"). An
extra charge will be deducted from your Fund Value each month during the
Guarantee Period. This charge will end at the conclusion of the Guarantee
Period, and it will end if on any monthly anniversary date you have not paid
the amount of premiums the rider requires you to pay. See "Guaranteed Death
Benefit," page 34.
On each monthly anniversary day we test to determine whether you have paid
the amount of premiums you are required to pay in order to keep the Guaranteed
Death Benefit Rider in effect. To remain in effect, we make two calculations.
38
The first calculation shows the net premiums you have paid. We
(1) total the actual premiums you have paid for the policy, and
(2) subtract the amount of:
(a) partial surrenders (and associated fees and surrender charges),
and
(b) outstanding debt.
The second calculation shows the amount of premiums the rider required you
to pay. We
(1) take the Monthly Guarantee Premium specified by the policy, and
(2) multiply it by the number of complete months since the policy date.
If the net premiums you have paid equals or exceeds the amount of premiums
the rider required you to pay, the rider remains in effect until the next
monthly anniversary date. If the amount of premiums the rider required you to
pay exceeds the net premiums you have paid, we will send you a notice that
requires you to pay additional premiums within the time specified in the
notice. This time is called the grace period for the rider. If you fail to pay
the additional premiums required the Guarantee Period, and therefore the Rider,
will end. Once ended, the Rider can not be reinstated.
The grace period for this Rider is explained in the section called "Grace
Period and Lapse -- If Guaranteed Death Benefit Is in Effect" on page 45.
The Guaranteed Death Benefit Rider is not available on policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the states of New Jersey and Texas. This rider is also not available if
coverage under the Term Life Term Rider or the Additional Term Life Insurance
Rider has been elected. Because the Guaranteed Death Benefit Rider is not
available, the Grace Period and Lapse will be treated as if the Guaranteed
Death Benefit is not in effect.
It is important to consider the Guaranteed Death Benefit Rider premium
requirements when setting the amount of the scheduled premium payments for your
policy. (See Appendix C.) This rider is also not available if coverage under
the Term Life Term Rider or the Additional Term Life Insurance Rider has been
elected.
Guaranteed Death Benefit to Age 100 Rider
The Guaranteed Death Benefit to Age 100 Rider guarantees that during the
insured's lifetime, the policy will not lapse regardless of the cash value.
Provided that certain conditions are met, a minimum death benefit equal to the
Specified Amount will be paid. To maintain the benefit, total premiums paid
less partial surrenders (excluding any partial surrender fees) less outstanding
debt must equal or exceed the cumulative required minimum monthly premium to
date. This rider is not available if you elect coverage under the Guaranteed
Death Benefit Rider, Term Life Term Rider and/or Additional Term Life Insurance
Rider. This rider is only available for policies applied for on or after March
1, 2001.
Maturity Extension Rider
This rider extends coverage beyond the original maturity date until the date
death proceeds become payable. Death proceeds payable upon the surviving
insured's death equal the Cash Value of the policy at the original maturity
date multiplied by a death benefit percentage of 101%.
Election to extend the maturity date may be made by written request. The
election must be received by the Company at least 30 days but no more than 90
days before the original maturity date. Premiums will not be accepted, nor will
monthly deductions be made, after maturity date.
39
Enhanced Maturity Extension Rider
This rider provides the option to extend coverage beyond the original
maturity date of the policy until the date death proceeds become payable. Death
proceeds payable upon the surviving insured's death on and after the original
maturity date will equal the death benefit as determined under the policy using
101% as the applicable percentage of Fund Value.
Election to extend the maturity date may be made by written request. The
election must be received by the Company at least 30 days but no more than 90
days before the original maturity date. Premiums will not be accepted, nor will
monthly deductions be made, after the original maturity date.
If you elect this rider, the Maturity Extension Rider will not be effective.
If you elect to end this rider by providing the Company with a written
request to end it, the Company will automatically provide coverage under the
Maturity Extension Rider.
This rider is available only in states where approval has been received.
Additional Term Life Insurance Rider
The Additional Term Life Insurance Rider provides you with a level death
benefit to age 100. The Additional Term Life Insurance Rider unlike the Life
Term Rider is combined with the Specified Amount of the policy for purposes of
determining if the minimum "corridor" is required to maintain the definition of
life insurance under the Internal Revenue Code section 7702 (See "Definition of
Life Insurance" on page 52).
Waiver of Monthly Deduction Rider
This rider provides for the waiver of certain charges while the selected
insured has a covered disability and the policy is in effect. While the
selected insured is disabled, no deductions are made for (1) monthly
administrative charges, (2) per $1,000 Specified Amount charges, (3) cost of
insurance charges, and rider charges. During this period the charges are waived
and therefore not deducted from the Fund Value. This rider does not waive the
payment of premiums required by the Guaranteed Death Benefit Rider. However,
the cumulative Minimum Monthly Premium requirement does not change during the
covered disability. It remains fixed at the level at the beginning of the
disability.
Waiver of Specified Premiums Rider
This rider provides for the waiver of the monthly specified premiums (shown
on the rider) while the selected insured has a covered disability and the
policy is in effect. The specified premiums will be added to the Fund Value on
each monthly anniversary. Net premiums will be allocated among the subaccounts
and the Guaranteed Interest Account according to your most recent instructions.
This rider does not waive the monthly deductions of your policy nor does it
waive the payment of premiums required by the Guaranteed Death Benefit Rider.
Four Year Term Insurance Rider
This benefit provides non-renewable, non-convertible term insurance. The
insurance is payable if the second death occurs within the first four policy
years. If the policy owner makes any changes to the Specified Amount, the
amount of this rider will be adjusted.
Option to Split Policy
This benefit provides that the policy may be split into two other individual
life insurance policies within the 6 month period following:
40
. Certain major changes in Federal income tax laws
. Divorce (if the insureds are married when the policy is issued)
. Business dissolution (if the insureds are employees of one organization at
the time the policy is issued).
Evidence of insurability at the time the option is exercised will not be
required if as a result of a tax law change, but will be required in all other
instances. Certain conditions, as described in the policy, must be met before
this option can be exercised. This benefit is guaranteed by the Guaranteed
Death Benefit Rider. There is no charge for this benefit. This benefit is not
available in all states.
Benefits at Maturity
If one or both of the insureds is living on the maturity date, the Company
will pay to the policy owner the Cash Value of the policy. Ordinarily, the
Company pays within seven days of the policy anniversary. Payments may be
postponed in certain circumstances. See "Payments," page 62. Payment of the
benefit may be deferred until the date of the last surviving insured's death
(see Maturity Extension Rider and Enhanced Maturity Extension Rider above).
Policy Values
Fund Value
The Fund Value is the sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L and any Guaranteed Interest
Account. It also includes the amount set aside in the Company's Loan Account,
and any interest, to secure Outstanding Debt.
On each Business Day, the part of the Fund Value allocated to any particular
subaccount is adjusted to reflect the investment experience of that subaccount.
On each monthly anniversary day, the Fund Value also is adjusted to reflect
interest on the Guaranteed Interest Account and the Loan Account and the
assessment of the monthly deduction. See "Determination of Fund Value," page
39. No minimum amount of Fund Value allocated to a particular subaccount is
guaranteed. You bear the risk for the investment experience of Fund Value
allocated to the subaccounts.
Cash Value
The Cash Value of the policy equals the Fund Value less any surrender charge
less any Outstanding Debt. Thus, the Fund Value exceeds your policy's Cash
Value by the amount of the surrender charge and any Outstanding Debt. Once the
surrender charge expires, the Cash Value equals the Fund Value less any
Outstanding Debt.
Determination of Fund Value
Although the death benefit under a policy can never be less than the
policy's Specified Amount, the Fund Value will vary. The Fund Value varies
depending on several factors:
. Payment of premiums.
. Amount held in the Loan Account to secure any Outstanding Debt.
. Partial surrenders.
. The charges assessed in connection with the policy.
. Investment experience of the subaccounts.
. Amounts credited to the Guaranteed Interest Account.
41
There is no guaranteed minimum Fund Value (except to the extent that you have
allocated net premium payments and cash values to the Guaranteed Interest
Account) and you bear the entire risk relating to the investment performance of
Fund Value allocated to the subaccounts.
The Company uses amounts allocated to the subaccounts to purchase shares of
the corresponding portfolios of the Funds. The values of the subaccounts
reflect the investment experience of the corresponding portfolio. The
investment experience reflects:
. The investment income.
. Realized and unrealized capital gains and losses.
. Expenses of a portfolio including investment adviser fees.
. Any dividends or distributions declared by a portfolio.
Any dividends or distributions from any portfolio of the Funds are reinvested
automatically in shares of the same portfolio. However, the Company, on behalf
of MONY America Variable Account L, may elect otherwise. The subaccount value
will also reflect the mortality and expense risk charges the Company makes each
day to the Variable Account.
Amounts allocated to the subaccounts are measured in terms of units. Units
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each subaccount is represented by the value of units credited to
the policy for that subaccount. (See "Calculating Unit Values for Each
Subaccount," on page 40.) On any day, the amount in a subaccount of MONY
America Variable Account L is equal to the unit value times the number of units
in that subaccount credited to the policy. The units of each subaccount will
have different unit values.
Units of a subaccount are purchased (credited) whenever premiums or amounts
transferred (including transfers from the Loan Account) are allocated to that
subaccount. Units are redeemed (debited) to:
. Make partial surrenders.
. Make full surrenders.
. Transfer amounts from a subaccount (including transfers to the loan
account).
. Pay the death benefit when the last surviving insured dies.
. Pay monthly deductions from the policy's Fund Value.
. Pay policy transaction charges.
. Pay surrender charges.
The number of units purchased or redeemed is determined by dividing the dollar
amount of the transaction by the unit value of the affected subaccount,
computed after the close of business that day. The number of units changes only
as a result of policy transactions or charges. The number of units credited
will not change because of later changes in unit value.
Transactions are processed when a premium or an acceptable written or
telephone request is received at the Company's administrative office. If the
premium or request reaches the administrative office on a day that is not a
Business Day, or after the close of business on a Business Day (after 4:00
Eastern Time), the transaction date will be the next Business Day. All policy
transactions are performed as of a Business Day. If a transaction date or
monthly anniversary day occurs on a day other than a Business Day (e.g.,
Saturday), the calculations will be done on the next day that the New York
Stock Exchange is open for trading.
42
Calculating Unit Values for Each Subaccount
The Company calculates the unit value of a subaccount on any Business Day as
follows:
(1) Calculate the value of the shares of the portfolio belonging to the
subaccount as of the close of business that Business Day. This calculation
is done before giving effect to any policy transactions for that day, such
as premium payments or surrenders. For this purpose, the net asset value per
share reported to the Company by the managers of the portfolio is used.
(2) Add the value of any dividends or capital gains distributions
declared and reinvested by the portfolio during the valuation period.
Subtract from this amount a charge for taxes, if any.
(3) Subtract a charge for the mortality and expense risk assumed by the
Company under the policy. See "Daily Deductions From the Variable Account --
Mortality and Expense Risk Charge," page 48. If the previous day was not a
Business Day, then the charge is adjusted for the additional days between
valuations.
(4) Divide the resulting amount by the number of units held in the
subaccount on the Business Day before the purchase or redemption of any
units on that date.
The unit value of each subaccount on its first Business Day was set at
$10.00.
Determining Fund Value
[FLOW CHART]
43
Transfer of Fund Value
You may transfer Fund Value among the subaccounts after the Right to Return
Policy Period by sending a proper written request to the Company's
administrative office. Transfers may be made by telephone if you have proper
authorization. See "Telephone Transfer Privileges," page 66. Currently, there
are no limitations on the number of transfers between subaccounts. There is
also no minimum amount required: (1) to make a transfer, or (2) to remain in
the subaccount after a transfer. You may not make a transfer if your policy is
in the grace period and a payment required to avoid lapse is not paid. See
"Grace Period and Lapse," page 44. No charges are currently imposed upon these
transfers. However, the Company reserves the right to assess a $25 transfer
charge in the future on policy transfers and to discontinue telephone
transfers.
After the Right to Return Policy Period, Fund Value may also be transferred
from the subaccounts to the Guaranteed Interest Account. Transfers from the
Guaranteed Interest Account to the subaccounts will only be permitted in the
policy month following a policy anniversary as described in "The Guaranteed
Interest Account," page 59.
Right to Exchange Policy
During the first 24 months following the policy date, you may exchange your
policy for a policy where the investment experience is guaranteed. To
accomplish this, the entire amount in the subaccounts of MONY America Variable
Account L is transferred to the Guaranteed Interest Account. All future
premiums are allocated to the Guaranteed Interest Account. This serves as an
exchange of your policy for the equivalent of a last survivor flexible premium
universal life policy. See "The Guaranteed Interest Account," page 59. No
charge is imposed on the transfer when you exercise the exchange privilege.
Policy Loans
You may borrow money from the Company at any time using your policy as
security for the loan. You take a loan by submitting a proper written request
to the Company's administrative office. You may take a loan any time your
policy has a positive Cash Value. The maximum amount you may borrow at any time
is 90% of the Cash Value of your policy. (If you request a loan on a monthly
anniversary day, the maximum loan is reduced by the monthly deduction due on
that day.) The Outstanding Debt is the cumulative amount of outstanding loans
and loan interest payable to the Company at any time.
Loan interest is payable in arrears on each policy anniversary at an annual
rate which varies by the number of years since your policy was issued. For the
first ten policy years, the loan rate is 5.25%. After the tenth policy
anniversary, the loan rate is 4.75%. Interest on the full amount of any
Outstanding Debt is due on the policy anniversary, until the Outstanding Debt
is repaid. If interest is not paid when due, it will be added to the amount of
the Outstanding Debt.
You may repay all or part of the Outstanding Debt at any time while your
policy is in effect. Only payments shown as loan or interest payments will be
treated as such. If a loan repayment is made which exceeds the Outstanding
Debt, the excess will be applied as a scheduled premium payment. The payment
will be subject to the rules on acceptance of premium payments.
When you take a loan, an amount equal to the loan is transferred out of the
subaccounts and the Guaranteed Interest Account into the Loan Account to secure
the loan. Within certain limits, you may specify the amount or the percentage
of the loan amount to be deducted from the subaccounts and the Guaranteed
Interest Account. The request for a loan will not be accepted if (1) you do not
specify the source of the transfer, or (2) if the transfer instructions are
incorrect. On each policy anniversary, an amount equal to the loan interest due
and unpaid for the policy year will be transferred to the loan account. The
transfer is made from the subaccounts and the Guaranteed Interest Account on a
proportional basis.
44
The Fund Value in the Loan Account in excess of the Outstanding Debt will be
allocated to the subaccounts and/or the Guaranteed Interest Account in a manner
determined by us.
The Loan Account is part of the Company's general account. Amounts held in
the Loan Account are credited monthly with an annual rate of interest not less
than 4.5%.
Loan repayments release funds from the Loan Account. Unless you request
otherwise, amounts released from the Loan Account will be transferred into the
subaccounts and Guaranteed Interest Account pursuant to your most recent valid
allocation instructions for scheduled premium payments. In addition, Fund Value
in the Loan Account in excess of the outstanding loan is treated differently.
The treatment depends on (1) whether when the loan was made, Fund Values were
transferred from the subaccounts or the Guaranteed Interest Account, and (2)
whether or not loan interest due is paid when due or the amount of the interest
is added to the loan ("capitalized"). If the loan is from the subaccounts and
loan interest is capitalized, this excess offsets the amount that must be
transferred from the subaccounts to the Loan Account on the policy anniversary.
If the loan is from the Guaranteed Interest Account and loan interest is
capitalized, this excess is allocated back to the Guaranteed Interest Account.
The allocation back is on a monthly basis proportionately to all interest
crediting generations from which the loan was taken.
Amounts held in the Loan Account to secure Outstanding Debt forego the
investment experience of the subaccounts and the current interest rate of the
Guaranteed Interest Account. Thus Outstanding Debt, whether or not repaid, has
a permanent effect on your policy values and may have an effect on the amount
and duration of the death benefit. If not repaid, the Outstanding Debt will be
deducted from the amount of the death benefit upon the death of the last
surviving insured, or the value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the policy remains in effect.
After the third policy anniversary, your policy will lapse when:
(1) Cash Value is insufficient to cover the monthly deduction against the
policy's Fund Value on any monthly anniversary day, and
(2) The minimum payment required is not made during the grace period.
Moreover, the policy may enter the grace period more quickly when Outstanding
Debt exists, because the Outstanding Debt is not available to cover the monthly
deduction. In addition, the guarantee period under the Guaranteed Death Benefit
Rider may end if total premiums received less (1) any partial surrenders and
their fees, and (2) Outstanding Debt do not exceed the premiums required under
that Rider. Additional payments or repayments of a part of Outstanding Debt may
be required to keep the Policy or Rider in effect. See "Grace Period and
Lapse," page 44.
A loan will not be treated as a distribution from your policy and will not
result in taxable income to you unless your policy is a modified endowment
contract. If your policy is a modified endowment contract, a loan will be
treated as a distribution that may give rise to taxable income. If your policy
lapses with an outstanding loan balance there could be adverse federal income
tax consequences depending on the particular facts and circumstances. For
example, if (1) your policy lapses with an outstanding loan balance, and (2) it
does not lapse under a non-forfeiture option, you can have ordinary income to
the extent the outstanding loan exceeds your investment in the policy (i.e.
generally premiums paid less prior non-taxable distributions). For more
information on the tax treatment of loans, see "Federal Income Tax
Considerations," page 52.
Full Surrender
You may fully surrender your policy at any time during the lifetime of
either or both insured. The amount received for a full surrender is the
policy's Fund Value less (1) any surrender charge, and (2) any Outstanding
Debt.
45
You may surrender your policy by sending a written request together with the
policy to the Company's administrative office. The proceeds will be determined
as of the end of the valuation period during which the request for surrender is
received. You may elect to (1) have the proceeds paid in cash, or (2) apply the
proceeds under a payment plan offered under your policy. See "Payment Plan,
Settlement Provisions," page 62. For information on the tax effects of
surrender of a policy, see "Federal Income Tax Considerations," page 52.
Partial Surrender
With a partial surrender, you obtain a part of the Cash Value of your policy
without having to surrender the policy in full. You may request a partial
surrender at any time. The partial surrender will take effect on (1) the
business day that we receive your request at our administrative office, or (2)
on the next business day if that day is not a business day. There is currently
no limit on the number of partial surrenders allowed in a policy year.
A partial surrender must be for at least $500 (plus the applicable fee). In
addition, your policy's Cash Value must be at least $500 after the partial
surrender. If you have taken a loan on your policy, the amount of the partial
surrender is limited so that the loan amount, after the partial surrender, is
not greater than 90% of Cash Value after the partial surrender.
You may make a partial surrender by submitting a proper written request to
the Company's administrative office. As of the effective date of any partial
surrender, your Fund Value and Cash Value are reduced by the amount surrendered
(plus the applicable fee). You allocate an amount or percent of your Fund Value
in the subaccounts and the Guaranteed Interest Account for your partial
surrender. Allocations by percentage must be in whole percentages and the
minimum percentage is 10% against any subaccount or the Guaranteed Interest
Account. Percentages must total 100%. We will reject an allocation which does
not comply with the rules or if there is not enough Fund Value in a subaccount
or the Guaranteed Interest Account to provide its share of the allocation. If
the last surviving insured dies after the request for a partial surrender is
sent to the Company and prior to it being effected, the amount of the partial
surrender will be deducted from the death benefit proceeds. The death benefit
proceeds will be determined taking into account the amount surrendered.
When you make a partial surrender and you selected death benefit Option 1,
the Specified Amount of your policy is decreased by the amount of the partial
surrender (excluding its fee). If you selected death benefit Option 2, a
partial surrender will not change the Specified Amount of your policy. However,
if the death benefit is not equal to the Fund Value times a death benefit
percentage, the death benefit will be reduced by the amount of the partial
surrender. Under either death benefit Option, if the death benefit is based on
the Fund Value times the applicable death benefit percentage, the death benefit
may decrease by an amount greater than the partial surrender. See "Death
Benefits under the Policy," page 31.
There is a fee for each partial surrender of $10.
For information on the tax treatment of partial surrenders, see "Federal
Income Tax Considerations," page .
Grace Period and Lapse
Your policy will remain in effect as long as:
(1) It has a Cash Value greater than zero
(2) You have purchased the Guaranteed Death Benefit Rider or the
Guaranteed Death Benefit to Age 100 Rider, and you have met all the
requirements of the applicable rider, and
(3) You make any required additional premium payments during a 61-day
Grace Period.
46
Special Rule for First Three Policy Years
During the first three policy years, your policy and any riders are
guaranteed not to lapse if on each monthly anniversary day either:
. Your policy's Cash Value is greater than zero, or
. The sum of the premiums paid minus all partial surrenders (excluding
related fees), minus any Outstanding Debt, is greater than or equal to
. The Minimum Monthly Premium times the number of months your policy has
been in effect.
If the insufficiency occurs at any other time, your policy may be at risk of
lapse depending on whether or not a Guaranteed Death Benefit Rider is in
effect.
See the explanation below.
If Guaranteed Death Benefit Rider Is Not in Effect
To avoid lapse if (1) the Cash value is insufficient to pay the current
Monthly Deduction, and (2) the Guaranteed Death Benefit Rider is not in effect,
you must pay the necessary amount during the grace period. When an
insufficiency occurs, you may also be required to pay any unpaid, loan interest
accrued for the policy year. The interest amount will also have to be paid
prior to the end of the grace period.
We will reject any payment if it means your total premium payments will
exceed the maximum permissible premium for your policy's Specified Amount under
the Internal Revenue Code. This may happen when you have Outstanding Debt. In
this event, you could repay enough of the Outstanding Debt to avoid
termination. You may also wish to repay an additional part of the Outstanding
Debt to avoid recurrence of the potential lapse. If premium payments have not
exceeded the maximum permissible premiums, you may wish to make larger or more
frequent premium payments to avoid recurrence of the potential lapse. However,
we will not reject any premium payments necessary to prevent lapse of your
policy.
If the Cash Value of your policy will not cover the entire monthly deduction
on a monthly anniversary day, we will deduct the amount that is available. We
will notify you (and any assignee of record) of the payment necessary to keep
your policy in effect. You will then have a grace period of 61 days, from the
date the notice was sent, to make the payment. During the first three policy
years, if the Cash Value of the policy is less than zero, you must pay:
(1) The Minimum Monthly Premium not paid, plus
(2) One succeeding Minimum Monthly Premium.
After the third policy anniversary, the payment required is:
(1) The monthly deduction not paid, plus
(2) Two succeeding monthly deductions plus by the amount of the
deductions from premiums for various taxes and sales charges.
(See "Charges and Deductions -- Deductions from Premiums," page 48). The policy
will remain in effect through the grace period. If you fail to make the
necessary payment within the grace period, your coverage under the policy will
end and your policy will lapse. Necessary premium payments made during the
grace period will be allocated among the subaccounts and the Guaranteed
Interest Account. The allocation is made in according to your current scheduled
premium payment allocation instructions. Any monthly deduction due will be
charged proportionately to the subaccounts and the Guaranteed Interest Account.
If the last surviving insured dies during the grace period, the death benefit
proceeds will equal:
(1) The amount of the death benefit immediately prior to the start of the
grace period, reduced by
47
(2) Any unpaid monthly deductions and any Outstanding Debt.
If Guaranteed Death Benefit Rider Is in Effect
The Specified Amount of your policy and most rider coverages will not lapse
during the guarantee period even if the Cash Value is not enough to cover all
the deductions from the Fund Value on any monthly anniversary day if:
(1) A Guaranteed Death Benefit Rider is in effect, and
(2) The test for continuation of the guarantee period has been met.
See "Guaranteed Death Benefit Rider," page 36.
While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
your policy may be reduced by monthly deductions but not below zero. During the
guarantee period, we will waive any monthly deduction that will reduce the Fund
Value below zero. If the Guaranteed Death Benefit Rider is ended, the normal
test for lapse will resume.
Reinstatement
We will reinstate a lapsed policy at any time:
(1) Before the maturity date, and
(2) Within five years after the monthly anniversary day which precedes
the start of the grace period.
To reinstate a lapsed policy we must also receive:
(1) A written application from you
(2) Evidence of insurability of both insureds that is satisfactory to us
(3) Payment of all monthly deductions that were due and unpaid during the
grace period
(4) Payment of an amount at least sufficient to keep your policy in
effect for one month after the reinstatement date
(5) Payment or reinstatement of any debt on the policy anniversary at the
start of the grace period
(6) Payment of interest on debt reinstated from the beginning of the
grace period to the end of the grace period at the rate that applies to
policy loans on the date of reinstatement
When your policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse subject to the following:
(1) The surrender charge will be equal to the surrender charge that would
have existed had your policy been in effect since the original policy date.
(2) The Fund Value will be reduced by the decrease, if any, in the
surrender charge during the period that the policy was not in effect.
(3) Any Outstanding Debt on the date of lapse will also be reinstated.
(4) No interest on amounts held in our loan account to secure Outstanding
Debt will be paid or credited between lapse and reinstatement.
Reinstatement will be effective as of the monthly anniversary day on or
preceding the date of approval by us. At that time, the Fund Value minus, if
applicable, Outstanding Debt will be allocated among the subaccounts and the
Guaranteed Interest Account pursuant to your most recent scheduled premium
payment allocation instructions.
48
CHARGES AND DEDUCTIONS
The following chart summarizes the current charges and deductions under the
policy:
---------------------------------------------------------------------------------------------------------
Deductions from Premiums
---------------------------------------------------------------------------------------------------------
Sales Charge -- Varies based on policy year. It is First 10 policy years -- 6% of premiums paid up to
a % of premium paid Target Premium and 2% if premium paid in excess
of Target Premium.
Years 11 and later -- 2% of all premiums.
---------------------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.25%
---------------------------------------------------------------------------------------------------------
Daily Deduction from MONY America Variable Account L
---------------------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
---------------------------------------------------------------------------------------------------------
Monthly Deductions from Fund Value
---------------------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount at risk
at the beginning of the policy month
---------------------------------------------------------------------------------------------------------
Administrative Charge -- Monthly $7.50
---------------------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the first 10
Based on issue age of the younger insured policy years (or for 10 years from the date of any
smoking Status and Specified Amount. increase in Specified Amount)
---------------------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of Specified Amount and certain
Monthly Charge for Guaranteed Death Benefit Rider amounts. Please note that the Rider requires
Rider (Guaranteed Death Benefit Rider is not that at least the amount of premiums set forth in the
available in all states) policy itself be paid in order to remain in effect.
---------------------------------------------------------------------------------------------------------
Optional Insurance Benefits Charge As applicable.
Monthly Deduction for any other optional
insurance Benefits added by rider.
---------------------------------------------------------------------------------------------------------
Transaction and Other Charges
- Partial Surrender Fee $10
- Transfer of Fund Value (at Company's Option) $25 maximum per transfer/1/
---------------------------------------------------------------------------------------------------------
Surrender Charge See the discussion of Surrender Charge on page 50
Grades from 100% to 0 over 11 years based on a for grading schedule.
schedule. Factors per $1,000 of Specified Amount
vary based on issue age, gender, and underwriting
class.
---------------------------------------------------------------------------------------------------------
/1/ Currently no charge on any transfers.
The following provides additional details of the deductions from premium
payments under a policy prior to allocating net premium payments to the
subaccounts of MONY America Variable Account L or to the Guaranteed Interest
Account and of the deductions from MONY America Variable Account L and from the
policy's Fund Value.
49
Deductions from Premiums
Deductions are made from each premium payment prior to applying the net
premium payment to the Fund Value.
Sales Charge -- This charge varies based on a target premium. The target premium is
actuarially determined based upon the Specified Amount of the
policy and the age, gender, underwriting class and smoking status of
each of the insureds. The target premium is established at issue, and
will be adjusted if the Specified Amount is increased or decreased.
The charge is a percent of each premium paid.
First 10 policy years -- 6% of premiums paid up to target premium
and 2% of premium paid in excess of target premium in that year.
Years 11 and later -- 2% of all premiums.
You should refer to your policy to determine the amount of the target
premium.
The sales charge compensates us for the cost of distributing the policies.
This charge is not expected to be enough to cover sales and distribution
expenses for the policies. To the extent that sales and distribution expenses
exceed sales charges, amounts derived from surrender charges will be used.
Expenses in excess of the sales and surrender charges may be recovered from
other charges, including amount indirectly derived from the charge for
mortality and expense risks and mortality gains.
Tax Charge -- State and local premium tax -- currently 2.25%; Federal tax for
deferred acquisition costs of the Company -- currently 1.25%
All states levy taxes on life insurance premium payments. These taxes vary
from state to state and may vary from jurisdiction to jurisdiction within a
state. The Company currently deducts an amount equal to 2.25% of each premium
to pay applicable premium taxes. Currently, these taxes range from 0% to 4%. We
do not expect to profit from this charge.
The 1.25% current charge against each premium covers our estimated cost for
the Federal income tax treatment of deferred acquisition costs. This is
determined solely by the amount of life insurance premiums received. We believe
this charge is reasonable in relation to our increased federal tax burden under
IRC Section 848 resulting from the receipt of premium payments.
We reserve the right to increase or decrease the charge for taxes due to any
change in tax law or due to any change in the cost to us.
Daily Deduction From MONY America Variable Account L
A charge is deducted daily from each subaccount of MONY America Variable
Account L for the mortality and expense risks assumed by the Company.
Mortality and Expense Risk Charge -- Maximum of .000959% of the amount in the subaccount, which is
equivalent to an annual rate of .35% of subaccount value.
This charge compensates us for assuming mortality and expense risks under
the policies. The mortality risk assumed is that insureds, as a group, may live
for a shorter period of time than estimated. Therefore, the cost of insurance
charges specified in the policy will not be enough to meet our actual claims.
We assume an expense
50
risk that other expenses incurred in issuing and administering the policies and
operating MONY America Variable Account L will be greater than the amount
estimated when setting the charges for these expenses. We will realize a profit
from this fee to the extent it is not needed to provide benefits and pay
expenses under the policies. We may use this profit for other purposes. These
purposes may include any distribution expenses not covered by the sales charge
or surrender charge.
This charge is not assessed against the amount of the policy Fund Value that
is allocated to the Guaranteed Interest Account, nor to amounts in the Loan
Account.
Monthly Deductions from Fund Value
A charge called the Monthly Deduction is deducted from the Fund Value on
each monthly anniversary day. The Monthly Deduction consists of the following
items:
Cost of Insurance -- This charge compensates us for the anticipated cost of paying death
benefits in excess of Fund Value to insureds' beneficiaries. The
amount of the charge is equal to a current cost of insurance rate
multiplied by the net amount at risk under the policy at the beginning
of each policy month. Here, net amount at risk equals the death
benefit payable at the beginning of the policy month less the Fund
Value at that time.
The policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables. (Where unisex cost of insurance
rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker Mortality
Table D applies.) These rates are based on the age and underwriting class of
each insured. They are also based on the gender of the insured, but unisex
rates are used where appropriate under applicable law. Unisex rates apply to
policies issued for delivery in the State of Montana. As of the date of this
prospectus, we charge "current rates" that are lower (i.e less expensive) than
the guaranteed rates. We may change current rates in the future. Like the
guaranteed rates, the current rates also vary with the age, gender, smoking
status, and underwriting class of each insured. In addition, they also vary
with the policy duration. The cost of insurance rate generally increases with
the age of each insured.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial
Specified Amount, the excess will then be applied to any increase in Specified
Amount in the order of the increases. If the death benefit equals the Fund
Value multiplied by the applicable death benefit percentage, any increase in
Fund Value will cause an automatic increase in the death benefit. The
underwriting class and duration for such increase will be the same as that used
for the most recent increase in Specified Amount (that has not been eliminated
through a later decrease in Specified Amount).
Administrative Charge -- $7.50 per month
This charge reimburses us for expenses associated with administration and maintenance of the policies. The
charge is guaranteed never to exceed $7.50. We do not expect to profit from this charge.
Monthly per $1,000 Specified Amount This charge applies for the first 10 years following the issuance of
Charge -- the policy or an increase in the Specified Amount. The charge is
made per $1,000 of Specified Amount based on issue age of the
younger insured, smoking status and Specified Amount. The
monthly per $1,000 factors are shown in Appendix B.
51
Guaranteed Death Benefit Charge -- If you elect the Guaranteed Death Benefit Rider, you will be charged
$0.01 per $1,000 of policy Specified Amount and certain Rider
amounts per month during the term of the Guaranteed Death Benefit
Rider. This charge is guaranteed never to exceed this amount.
Optional Insurance Benefits Charge -- A monthly deduction for any other optional insurance benefits added
to the policy by rider.
Surrender Charge -- The Company will assess a surrender charge against Fund Value
upon a surrender of all or part of the policy. The surrender charge is
based on a factor per $1,000 of initial Specified Amount (or upon an
increase in Specified amount) and grades from 100% to zero over 11
years based on a schedule. The factors per $1,000 vary by issue age,
gender, and underwriting class. The grading percentages (as shown
below) vary based on number of full years since the Policy was
issued (or since the increase in Specified Amount). The maximum
level of surrender charge is $53.31 per $1,000 of Specified Amount.
Policy Year Percent
----------- -------
1.......................................................... 100%
2.......................................................... 90
3.......................................................... 80
4.......................................................... 70
5.......................................................... 60
6.......................................................... 50
7.......................................................... 40
8.......................................................... 30
9.......................................................... 20
10......................................................... 10
11 and later............................................... 0
Surrender Charge
The surrender charge is a contingent deferred load. It is a contingent load
because it is assessed only if the policy is surrendered or if the policy
lapses. It is a deferred load because it is not deducted from the premiums
paid. The purpose of the surrender charge is to reimburse us for some of the
expenses of distributing the policies.
Effect of Changes in Specified Amount The surrender charge will increase when a new coverage segment of
on the Surrender Charge -- Specified Amount is created due to a requested increase in coverage.
The surrender charge related to the increase will be computed in the
same manner as the surrender charge for the original Specified
Amount. It will reduce over the 11-year period following the
increase. The new surrender charge for the policy will equal:
(1) Theremaining part of the surrender charge for the original
Specified Amount, plus
(2) Thesurrender charge related to the increase.
Decreases in Specified Amount have no effect on surrender charges.
52
Corporate Purchasers
The policy is available for purchase by individuals, trusts, corporations
and other organizations. Corporate or other group or sponsored arrangements
purchasing one or more policies may receive a reduction in charges. The Company
may reduce the amount of the sales charge, surrender charge, or other charges
where the expenses associated with the policy or policies are reduced. Sales,
underwriting or other administrative expenses may be reduced for reasons such
as expected economies resulting from a corporate purchase or a group or
sponsored arrangement, from the amount of the initial premium payment or
payments, or the amount of projected premium payments.
Transaction and Other Charges
. Partial Surrender Fee -- $10
. Transfer of Fund Value -- $25 (at option of the Company) currently $0
The partial surrender fee is guaranteed not to exceed $10. Currently, we do
not charge for transfers of Fund Value between the subaccounts. However, we
reserve the right to assess a $25 charge on transfers. This would include
telephone transfers, if we permit them.
We may charge the subaccounts for federal income taxes that are incurred by
us and are attributable to MONY America Variable Account L and its subaccounts.
No such charge is currently assessed. See "Charge for Company Income Taxes,"
page 56.
We will bear the direct operating expenses of MONY America Variable Account
L. The subaccounts purchase shares of the corresponding portfolio of the
underlying Fund. The Fund's expenses are not fixed or specified under the terms
of the policy.
Fees and Expenses of the Funds
The Fund and each of its portfolios incur certain charges including the
investment advisory fee and certain operating expenses. These fees and expenses
vary by portfolio and are set forth on page 4. Their Boards govern the Funds.
Fees and expenses of the Funds are described in more detail in the Funds'
prospectuses.
Guarantee of Certain Charges
We guarantee that certain charges will not increase. This includes:
(1) Mortality and expense risk charge.
(2) Administrative charge.
(3) Per $1,000 Specified Amount charge.
(4) Sales charge.
(5) Guaranteed cost of insurance rates.
(6) Surrender charge.
(7) Partial surrender fee.
Any changes in the current cost of insurance charges or charges for optional
insurance benefits will be made based on the class of the insured. Changes will
be based on changes in:
(1) Future expectations with respect to investment earnings,
(2) Mortality,
(3) Length of time policies will remain in effect,
(4) Expenses, and
(5) Taxes.
In no event will they exceed the guaranteed rates defined in the policy.
53
OTHER INFORMATION
Federal Income Tax Considerations
The following provides a general description of the federal income tax
considerations relating to the policy. This discussion is based upon our
understanding of the present federal income tax laws as the Internal Revenue
Service ("IRS") currently interprets them. This discussion is not intended as
tax advice. Tax laws are very complex and tax results will vary according to
your individual circumstances. A person considering the purchase of the policy
may need tax advice. It should be understood that these comments on federal
income tax consequences are not an exhaustive discussion of all tax questions
that might arise under the policy. Special rules that are not discussed here
may apply in certain situations. We make no representation as to the likelihood
of continuation of federal income tax or estate or gift tax laws or of the
current interpretations of the IRS or the courts. Future legislation may
adversely affect the tax treatment of life insurance policies or other tax
rules that we describe here or that relate directly or indirectly to life
insurance policies. Our comments do not take into account any state or local
income tax considerations that may be involved in the purchase of the policy.
Definition of Life Insurance
Under section 7702 of the Internal Revenue Code (the "Code"), a policy will
be treated as a life insurance policy for federal tax purposes if (a) a policy
is considered to be life insurance under applicable law and (b) one of two
alternate tests are met. The two alternative tests are:
(1) "Cash Value Accumulation Test"
(2) "Guideline Premium/Cash Value Corridor Test"
When you apply for a policy you will irrevocably choose which of these two
tests will be applied to your policy.
If your policy is tested under the Guideline Premium/Cash Value Corridor
Test. This test provides for, among other things:
(1) A maximum allowable premium per thousand dollars of death benefit,
known as the "guideline annual premium," and
(2) A minimum ongoing "corridor" of death benefit in relation to the Fund
Value of the policy, known as the "death benefit percentage."
See Appendix A, for a table of the Guideline Premium/Cash Value Corridor Test
factors. If your policy is tested under the Cash Value Accumulation Test, a
table of factors will be shown in your policy.
We believe that the policy meets this statutory definition of life insurance
and hence will receive federal income tax treatment consistent with that of
fixed life insurance. Thus, the death benefit should be excludable from the
gross income of the beneficiary (whether the beneficiary is a corporation,
individual or other entity) under Section 101 (a) (1) of the Code for purposes
of the regular federal income tax. You generally should not be considered to be
in constructive receipt of the cash values under the policy until a full
surrender, maturity of the policy, or a partial surrender. In addition, certain
policy loans may be taxable in the case of policies that are modified endowment
contracts. Prospective policy owners that intend to use policies to fund
deferred compensation arrangements for their employees are urged to consult
their tax advisors with respect to the tax consequences of such arrangements.
Prospective corporate owners should consult their tax advisors about the
treatment of life insurance in their particular circumstances for purposes of
the alternative minimum tax applicable to corporations.
Tax Treatment of Policies
The Technical and Miscellaneous Revenue Act of 1988 established a new class
of life insurance contracts referred to as modified endowment contracts. A life
insurance contract becomes a "modified endowment
54
contract" if, at any time during the first seven contract years, the sum of
actual premiums paid exceeds the sum of the "seven-pay premium." Generally, the
"seven-pay premium" is the level annual premium, which if paid for each of the
first seven years, will fully pay for all future death and endowment benefits
under a contract.
Example: "Seven-pay" premium = $1,000
Maximum premium to avoid "modified endowment" treatment =
First year -- $1,000
Through first two years -- $2,000
Through first three years -- $3,000 etc.
Under this test, a policy may or may not be a modified endowment contract. The
outcome depends on the amount of premiums paid during each of the policy's
first seven contract years. Changes in benefits may require testing to
determine if the policy is to be classified as a modified endowment contract. A
modified endowment contract is treated differently for tax purposes then a
conventional life insurance contract.
Conventional Life Insurance Policies
If a policy is not a modified endowment contract distributions are treated
as follows. Upon a full surrender or maturity of a policy for its Cash Value,
the excess if any, of the Cash Value plus Outstanding Debt minus the cost basis
under a policy will be treated as ordinary income for federal income tax
purposes. A policy's cost basis will usually equal the premiums paid less any
premiums previously recovered through partial surrenders. Under Section 7702 of
the Code, special rules apply to determine whether part or all the cash
received through partial surrenders in the first 15 policy years is paid out of
the income of the policy and therefore subject to income tax. Cash distributed
to a policy owner on partial surrenders occurring more than 15 years after the
policy date will be taxable as ordinary income to the policy owner to the
extent that it exceeds the cost basis under a policy.
We believe that loans received under policies that are not modified
endowment contracts will be treated as indebtedness of the owner. Thus, no part
of any loan under the policy will constitute income to the owner until the
policy matures, unless the policy is surrendered before it matures. Interest
paid (or accrued by an accrual basis taxpayer) on a loan under a policy that is
not a modified endowment contract may be deductible. Deductibility will be
subject to several limitations, depending upon (1) the use to which the
proceeds are put and (2) the tax rules applicable to the policy owner. If, for
example, an individual who uses the proceeds of a loan for business or
investment purposes, may be able to deduct all or part of the interest expense.
Generally, if an individual uses the policy loan for personal purposes, the
interest expense is not deductible. The deductibility of loan interest (whether
incurred under a policy loan or other indebtedness) also may be subject to
other limitations.
For example, the interest may be deductible to the extent that the interest
is attributable to the first $50,000 of the Outstanding Debt where:
. The interest is paid (or accrued by an accrual basis taxpayer) on a loan
under a policy, and
. The policy covers the life of an officer, employee, or person financially
interested in the trade or business of the policy owners.
Other tax law provisions may limit the deduction of interest payable on loan
proceeds that are used to purchase or carry certain life insurance policies.
Modified Endowment Contracts
Pre-death distributions from modified endowment contracts may result in
taxable income. Upon full surrender or maturity of the policy, the policy owner
would recognize ordinary income for federal income tax purposes. Ordinary
income will equal the amount by which the Cash Value plus Outstanding Debt
exceeds the investment in the policy. (The investment in the policy is usually
the premiums paid plus certain pre-death
55
distributions that were taxable less any premiums previously recovered that
were excludable from gross income.) Upon partial surrenders and policy loans
the policy owner would recognize ordinary income to the extent allocable to
income (which includes all previously non-taxed gains) on the policy. The
amount allocated to income is the amount by which the Fund Value of the policy
exceeds investment in the policy immediately before distribution. The tax law
provides for aggregation of two or more policies classified as modified
endowment contracts if:
(1) The policies are purchased from any one insurance company (including
the Company), and
(2) The purchases take place during a calendar year.
The policies are aggregated for the purpose of determining the part of the
pre-death distributions allocable to income on the policies and the part
allocable to investment in the policies.
Amounts received under a modified endowment contract that are included in
gross income are subject to an additional tax. This additional tax is equal to
10% of the amount included in gross income, unless an exception applies. The
10% additional tax does not apply to any amount received:
(1) When the taxpayer is at least 59 years old;
(2) Which is attributable to the taxpayer becoming disabled; or
(3) Which is part of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy)
of the taxpayer or the joint lives (or joint life expectancies) of the
taxpayer and his or her beneficiary.
A contract may not be a modified endowment contract originally but may
become one later. Treasury Department regulations, yet to be prescribed, cover
pre-death distributions received in anticipation of the policy's failure to
meet the seven-pay premium test. These distributions are to be treated as
pre-death distributions from a modified endowment contract (and, therefore, are
to be taxed as described above). This treatment is applied even though the
policy was not yet a modified endowment contract. The Code defines a
distribution in anticipation of failing the test as one made within two years
of the policy being classified as a modified endowment contract.
It is unclear whether interest paid (or accrued by an accrual basis
taxpayer) on Outstanding Debt with respect to a modified endowment contract
constitutes interest for federal income tax purposes. If it does constitute
interest, its deductibility will be subject to the same limitations as
conventional life insurance contracts (see "Federal Income Tax Considerations
-- Conventional Life Insurance Policies," page 53.)
Reasonableness Requirement for Charges
The tax law also deals with allowable mortality costs and other expenses
used in the calculations to determine whether a contract qualifies as life
insurance for income tax purposes. For policies entered into on or after
October 21, 1988, the calculations must be based upon, (1) reasonable mortality
charges, and (2) other charges reasonably expected to be paid. The Treasury
Department is expected to declare regulations governing reasonableness
standards for mortality charges. We believe our mortality costs and other
expenses used in these calculations meet the current requirements. It is
possible that future regulations will contain standards that would require us
to modify our mortality charges for these calculations. We reserve the right to
make modifications to retain the policy's qualification as life insurance for
federal income tax purposes.
Riders, Policy Changes, and Transfers
Certain benefits permit the splitting of the policy into two other
individual policies upon:
. Divorce
. Business Dissolution
. Certain changes in the Federal estate tax law
56
The splitting of a policy could have adverse tax consequences. Consequences
include, but are not limited to, the recognition of taxable income in an amount
up to any gain in the policy at the time of the split.
In order for the Beneficiary to receive certain tax treatment discussed in
the previous sections above, the policy must initially qualify and continue to
qualify as life insurance under Sections 7702 and 817(h) of the Code. To
qualify the policy as life insurance for tax purposes the Company may:
. Make changes in the policy or Riders, or
. Make distributions from the policy to the extent considered necessary.
Any such change will uniformly apply to all policies that are affected. The
policy owner will be given advance notice of such changes.
Special tax rules may apply to the transfer of ownership of a policy.
Consult a qualified tax adviser before any transfer of the policy.
Other Employee Benefit Programs
Complex rules may apply when a policy is held by an employer or a trust, or
acquired by an employee, to provide for employee benefits. These policy owners
also must consider whether the policy was applied for by or issued to a person
having an insurable interest under applicable state law. The lack of insurable
interest may, among other things, affect the qualification of the policy as
life insurance for federal income tax purposes. It may also affect the right of
the beneficiary to death benefits. Employers and employer-created trusts may be
subject to reporting, disclosure, and fiduciary obligations under the Employee
Retirement Income Security Act of 1974 (ERISA). The policy owner's legal
advisor should be consulted to address these issues.
Diversification Requirements
To comply with regulations under Section 817(h) of the Code, each portfolio
is required to diversify its investments. Generally, on the last day of each
quarter of a calendar year,
(1) No more than 55% of the value of the portfolio's assets can be
represented by any one investment,
(2) No more than 70% can be represented by any two investments,
(3) No more than 80% can be represented by any three investments, and
(4) No more than 90% can be represented by any four investments.
Securities of a single issuer generally are treated for purposes of Section
817(h) as a single investment. However, for this purpose, each U.S. Government
agency or instrumentality is treated as a separate issuer. Any security issued,
guaranteed, or insured (to the extent guaranteed and insured) by the U.S. or by
an agency or instrumentality of the U.S. is treated as a security issued by the
U.S. Government or its agency or instrumentality, as applicable.
Currently, for federal income tax purposes, the portfolio shares underlying
the policies are owned by the Company and not by you or any beneficiary.
However, no representation is or can be made regarding the likelihood of the
continuation of current interpretations by the IRS.
Other
Federal estate and gift and state and local estate, inheritance, and other
tax consequences of ownership or receipt of policy proceeds depend on the
jurisdiction and the circumstances of each owner or beneficiary.
For complete information on federal, state, local and other tax
considerations, a qualified tax advisor should be consulted.
57
The Company Does Not Make Any Guarantee Regarding
The Tax Status Of Any Policy
Charge for Company Income Taxes
For federal income tax purposes, variable life insurance generally is
treated in a manner consistent with fixed life insurance. The Company will
review the question of a charge to the Variable Account for the Company's
federal income taxes periodically. A charge may be made for any federal income
taxes incurred by the Company that are attributable to the Variable Account.
This might become necessary if:
(1) The tax treatment of the Company is ultimately determined to be other
than what the Company currently believes it to be,
(2) There are changes made in the federal income tax treatment of
variable life insurance at the insurance company level, or
(3) There is a change in the Company's tax status.
Under current laws, the Company may incur state and local taxes (in addition
to premium taxes imposed by the states) in several states. At present, these
taxes are not significant. If there is a material change in applicable state or
local tax laws or in the cost to the Company, the Company reserves the right to
charge the Account for any such taxes attributable to the Account.
Voting of Fund Shares
Based on its view of present applicable law, the Company will exercise
voting rights attributable to the shares of each portfolio of the Funds held in
the subaccounts. We will exercise such rights at any regular and special
meetings of the shareholders of the Funds on matters requiring shareholder
voting under the Investment Company Act of 1940. Our will exercise of these
voting rights will be based on instructions received from persons having the
voting interest in corresponding subaccounts of MONY America Variable Account
L. We may elect to vote the shares of the Funds in our own right if:
(1) The Investment Company Act of 1940 or any regulations thereunder is
amended, or
(2) The present interpretation of the Act should change, and
(3) As a result we determine that it is permitted to vote the shares of
the Funds in our own right.
The person having the voting interest under a policy is the policy owner.
Unless otherwise required by applicable law, a policy owner will have the right
to instruct for the number of votes of any portfolio determined by dividing his
or her Fund Value in the subaccount that corresponds to the portfolio by $100.
Fractional votes will be counted. The number policy owner votes will be
determined as of the date set by the Company. However, such date will not be
more than 90 days prior to the date established by the corresponding Fund for
determining shareholders eligible to vote at that Fund's meeting. If required
by the Securities and Exchange Commission, the Company reserves the right to
determine the voting rights in a different fashion. Voting instructions may be
cast in person or by proxy.
If the Company does not receive voting instructions from the policy owner on
time, the Company will vote his or her votes. The Company will vote in the same
proportion as voting instructions received on time for all policies
participating in that subaccount. The Company will also exercise the voting
rights from assets in each subaccount, which are not otherwise attributable to
policy owners. These votes will be exercised in the same proportion as the
voting instructions that are received on time for all policies participating in
that subaccount. Generally, the Company will vote any voting rights
attributable to shares of portfolios of the Funds held in its General Account.
These votes will be exercised in the same proportion as the aggregate votes
cast with respect to shares of portfolios of the Funds held by MONY America
Variable Account L and other separate accounts of the Company.
58
Disregard of Voting Instructions
The Company may disregard voting instructions when required by state
insurance regulatory authorities, if, (1) the instructions require that voting
rights be exercised so as to cause a change in the subclassification or
investment objective of a Portfolio, or (2) to approve or disapprove an
investment advisory contract. In addition, the Company itself may disregard
voting instructions of changes initiated by policy owners in the investment
policy or the investment adviser (or portfolio manager) of a portfolio. The
Company's disapproval of such change must be reasonable and must be based on a
good faith determination that the change would be contrary to state law or
otherwise inappropriate, considering the portfolio's objectives and purpose,
and considering the effect the change would have on the Company. If Company
does disregard voting instructions; a summary of that action and the reasons
for such action will be included in the next report to policy owners.
Report to Policy Owners
A statement will be sent at least annually to each policy owner setting
forth:
(1) A summary of the transactions which occurred since the last
statement, and
(2) Indicating the death benefit, Specified Amount, Fund Value, Cash
Value, and any Outstanding Debt.
In addition, the statement will indicate the allocation of Fund Value among the
Guaranteed Interest Account, the Loan Account and the subaccounts, and any
other information required by law. Confirmations will be sent out upon premium
payments, transfers, loans, loan repayments, withdrawals, and surrenders.
Each policy owner will also receive an annual and a semiannual report
containing financial statements for MONY America Variable Account L and the
Funds. The Funds' statement will include a list of the portfolio securities of
the Funds, as required by the Investment Company Act of 1940, and/or such other
reports as may be required by federal securities laws.
Substitution of Investments and Right to Change Operations
The Company reserves the right, subject to compliance with the law as then
in effect, to make additions to, deletions from, or substitutions for the
securities that are held by or may be purchased by MONY America Variable
Account L or any of its other separate accounts. The Company may substitute
shares of another portfolio of the Funds or of a different fund for shares
already purchased, or to be purchased in the future under the policies if:
(1) Shares of any or all of the portfolios of the Funds should no longer
be available for investment or,
(2) In the judgment of the Company's management, further investment in
shares of any or all portfolios of the Funds should become inappropriate in
view of the purposes of the policies.
Where required, the Company will not substitute any shares attributable to a
policy owner's interest in MONY America Variable Account L without notice,
policy owner approval, or prior approval of the Securities and Exchange
Commission. The Company will also follow the filing or other procedures
established by applicable state insurance regulators. Applicable state
insurance regulators include the Commissioner of Insurance of the State of
Arizona.
The Company also reserves the right to establish additional subaccounts of
MONY America Variable Account L. Each additional subaccount would invest in (1)
a new portfolio of the Funds, or (2) in shares of another investment company, a
portfolio thereof, or (3) another suitable investment vehicle, with a specified
investment objective. New subaccounts may be established when, in the sole
discretion of the Company, marketing needs or investment conditions warrant,
and any new Subaccounts will be made available to existing Policy Owners on a
basis to be determined by the Company. The Company may also eliminate one or
more subaccounts if, in its sole discretion, marketing, tax, or investment
conditions so warrant.
59
If a substitution or change is made, the Company may make changes in this
and other policies as may be necessary or appropriate to reflect such
substitution or change. If the Company considers it to be in the best interests
of persons having voting rights under the policies, MONY America Variable
Account L may:
(1) Be operated as a management investment company under the Investment
Company Act of 1940 or any other form permitted by law,
(2) Be deregistered under that Act if such registration is no longer
required, or
(3) Be combined with other separate accounts of the Company or an
affiliate thereof.
Subject to compliance with applicable law, the Company also may combine one or
more Subaccounts and may establish a committee, board, or other group to manage
one or more aspects of the operation of MONY America Variable Account L.
Changes to Comply with Law
The Company reserves the right to make any change without consent of policy
owners to the provisions of the policy to comply with, or give policy owners
the benefit of, any Federal or State statute, rule, or regulation. Federal and
State laws include but not limited to requirements for life insurance contracts
under the Internal Revenue Code, and regulations of the United States Treasury
Department or any state.
PERFORMANCE INFORMATION
We may advertise the performance of MONY America Variable Account L
subaccounts. We will also report performance to policy owners and may make
performance information available to prospective purchasers. This information
will be presented in compliance with applicable law.
Performance information may show the change in a policy owner's Fund Value
in one or more subaccounts, or as a change in a policy owner's death benefit.
Performance information may be expressed as a change in a policy owner's Fund
Value over time or in terms of the average annual compounded rate of return on
the policy owner's Fund Value. Such performance is based upon a hypothetical
policy in which premiums have been allocated to a particular subaccount of the
MONY America Variable Account L over certain periods of time that will include
one, five and ten years, or from the commencement of operation of the
subaccount of the MONY America Variable Account L if less than one, five, or
ten years. Any such quotation may reflect the deduction of all applicable
charges to the policy including premium load, the cost of insurance, the
administrative charge, and the mortality and expense risk charge. The quotation
may also reflect the deduction of the surrender charge, if applicable, by
assuming surrender at the end of the particular period. However, other
quotations may simultaneously be given that do not assume surrender and do not
take into account deduction of the surrender charge.
Performance information for MONY America Variable Account L may be compared,
in advertisements, sales literature, and reports to policy owners to:
(1) Other variable life separate accounts or investment products tracked
by research firms, ratings services, companies, publications, or persons who
rank separate accounts or investment products on overall performance or
other criteria, and
(2) The Consumer Price Index (measure for inflation) to assess the real
rate of return from the purchase of a policy.
Reports and promotional literature may also contain the Company's rating or a
rating of the Company's claim paying ability as determined by firms that
analyze and rate insurance companies and by nationally recognized statistical
rating organizations.
60
Performance information for any subaccount of MONY America Variable Account
L reflects only the performance of a hypothetical policy whose Fund Value is
allocated to MONY America Variable Account L during a particular time period on
which the calculations are based. Performance information should be considered
in light of the investment objectives and policies, characteristics and quality
of the portfolios of the Funds in which MONY America Variable Account L
invests. The market conditions during the given period of time should not be
considered as a representation of what may be achieved in the future.
We may also use non-standard performance in cases where we add new
subaccounts which purchase shares of underlying funds in existence prior to the
formation of such subaccounts. In such cases we will use the historical
performance of the underlying fund with the current expenses of the applicable
subaccount under the Contract.
THE GUARANTEED INTEREST ACCOUNT
You may allocate all or a portion of your net premiums and transfer Fund
Value to the Guaranteed Interest Account of the Company. Amounts allocated to
the Guaranteed Interest Account become part of the "General Account" of the
Company, which supports insurance and annuity obligations. The amounts
allocated to the General Account of the Company are subject to the liabilities
arising from the business the Company conducts. Descriptions of the Guaranteed
Interest Account are included in this Prospectus for the convenience of the
purchaser. The Guaranteed Interest Account and the General Account of the
Company have not been registered under the Securities Act of 1933 and the
Investment Company Act of 1940. Accordingly, neither the Guaranteed Interest
Account nor any interest therein is generally subject to the provisions of
these Acts and, as a result, the staff of the Securities and Exchange
Commission has not reviewed the disclosure in this prospectus relating to the
Guaranteed Interest Account. Disclosures regarding the Guaranteed Interest
Account may, however, be subject to certain generally applicable provisions of
the federal securities laws relating to the accuracy and completeness of
statements made in the prospectus. For more details regarding the Guaranteed
Interest Account, see the policy.
General Description
Amounts allocated to the Guaranteed Interest Account become part of the
General Account of Company which consists of all assets owned by the Company
other than those in MONY America Variable Account L and other separate accounts
of the Company. Subject to applicable law, the Company has sole discretion over
the investment of the assets of its General Account.
You may elect to allocate net premiums to the Guaranteed Interest Account,
MONY America Variable Account L, or both. You may also transfer Fund Value from
the subaccounts of MONY America Variable Account L to the Guaranteed Interest
Account or from the Guaranteed Interest Account to the subaccounts. The Company
guarantees that the Fund Value in the Guaranteed Interest Account will be
credited with a minimum interest rate of 0.0121% daily, compounded daily, for a
minimum effective annual rate of 4.5%. Such interest will be paid regardless of
the actual investment experience of the Guaranteed Interest Account. In
addition, Company may in its sole discretion declare current interest in excess
of the 4.5% annual rate. (The portion of a Policy Owner's Fund Value that has
been used to secure Outstanding Debt will be credited with a guaranteed
interest rate of 0.0121% daily, compounded daily, for a minimum effective
annual rate of 4.5%.) Prior to the beginning of each calendar month, an
interest rate will be declared. The declared rate will apply to premium
payments and transfers into the Guaranteed Interest Account made during the
calendar month. The calendar year and month the payment or transfer is made
determines the "generation" of such monies. The current interest will be
credited from the date of the payment or transfer for a period of 12 months
beginning the first day of the monthly generation to which the payment or
transfer is assigned. After the first 12 months, a renewal interest rate will
be declared for a new 12-month period. At the end of the renewal period all
monies will earn an interest rate which is declared monthly and applies for a
one-month period.
61
The Company bears the full investment risk for the Fund Value allocated to
the Guaranteed Interest Account.
Death Benefit
The death benefit under the policy will be determined in the same fashion if
you have Fund Value in the Guaranteed Interest Account or Fund Value in the
subaccounts. The death benefit under Option 1 will be equal to the Specified
Amount of the Policy or, if greater, Fund Value on the date of death of the
last surviving insured multiplied by a death benefit percentage. Under Option
2, the Death Benefit will be equal to the Specified Amount of the Policy plus
the Fund Value or, if greater, Fund Value on the date of death of the last
surviving insured multiplied by a death benefit percentage. See "Death Benefits
under the Policy," page 31.
Policy Charges
Deductions from premium, monthly deductions from the Fund Value, and
surrender charges will be the same if you allocate net premiums or transfer
Fund Value to the Guaranteed Interest Account or allocate net premiums to the
subaccounts. These charges include the sales and tax charges; the charges for
the cost of insurance, administrative charge, per $1,000 of Specified Amount
charge, the charge for any optional insurance benefits added by Rider, and the
surrender charge. Fees for partial surrenders and, if applicable, transfer
charges, will also be deducted from the Guaranteed Interest Account.
You will not directly or indirectly pay charges applicable to the
portfolios, including the operating expenses of the portfolios, and the
investment advisory fee charged by the portfolio managers if your Fund Value is
allocated to the Guaranteed Interest Account. Likewise, the mortality and
expense risk charge applicable to the Fund Value allocated to the subaccounts
is not deducted from Fund Value allocated to the Guaranteed Interest Account.
Any amounts that the Company pays for income taxes allocable to the subaccounts
will not be charged against the Guaranteed Interest Account. However, it is
important to remember that you will not participate in the investment
experience of the subaccounts to the extent that Fund Values are allocated to
the Guaranteed Interest Account.
Transfers
Amounts may be transferred after the Right to Return Policy Period from the
subaccounts to the Guaranteed Interest Account and from the Guaranteed Interest
Account to the subaccounts, subject to the following limitations.
. Transfers to the Guaranteed Interest Account may be made at any time and
in any amount.
. Transfers from the Guaranteed Interest Account to the subaccounts are
limited to one in any policy year.
. Transfers from the Guaranteed Interest Account may only be made during the
time period which begins on the policy anniversary and which ends 30 days
after the policy anniversary.
If the transfer request is received on the policy anniversary, it will be
processed as of the policy anniversary. If the transfer request is received
within 30 days after the policy anniversary, the transfer will be effective as
of the close of business on the day received if it is a Business Day. If it is
not a Business Day, then at the close of business on the next day which is a
Business Day. Any request received within 10 days before the policy anniversary
will be considered received on the policy anniversary. Any transfer requests
received at other times will not be honored, and will be returned to the policy
owner.
Currently there is no charge imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future.
Surrenders and Policy Loans
You may also make full surrenders and partial surrenders from the Guaranteed
Interest Account to the same extent as if you had invested in the subaccounts.
See "Full Surrender," page 43 and "Partial Surrender", page 44.
62
Transfers and surrenders payable from the Guaranteed Interest Account, and the
payment of policy loans allocated to the Guaranteed Interest Account, may be
delayed for up to six months. However, the Company will not delay payment of
surrenders or loans, the proceeds of which will be used to pay premiums on the
policy.
MORE ABOUT THE POLICY
Ownership
The policy owner is the individual named as such in the application or in
any later change shown in the Company's records. While either or both of the
insureds is living, the policy owner alone has the right to receive all
benefits and exercise all rights that the policy grants or the Company allows.
Joint Owners
If more than one person is named as policy owner, they are joint owners. Any
policy transaction requires the signature of all persons named jointly. Unless
otherwise provided, if a joint owner dies, ownership passes to the surviving
joint owner(s). When the last joint owner dies, ownership passes through that
person's estate, unless otherwise provided.
Beneficiary
The beneficiary is the individual named as such in the application or any
later change shown in the Company's records. The policy owner may change the
beneficiary at any time during the life of the insured by written request on
forms provided by the Company. The Company must receive the request at its
administrative office. The change will be effective as of the date this form is
signed. Contingent and/or concurrent beneficiaries may be designated. The
policy owner may designate a permanent beneficiary, whose rights under the
policy cannot be changed without his or her consent. Unless otherwise provided,
if no designated beneficiary is living upon the death of the last surviving
insured, the policy owner or the policy owner's estate is the beneficiary.
The Company will pay the death benefit proceeds to the beneficiary. Unless
otherwise provided, the beneficiary must be living when the last surviving
insured dies to receive the proceeds.
The Policy
This Policy is a contract between the policy owner and the Company. The
entire contract consists of the policy, a copy of the initial application, all
subsequent applications to change the policy, any endorsements, all riders, and
all additional policy information sections (specification pages) added to the
policy.
Notification and Claims Procedures
Any election, designation, change, assignment, or request made by you must
be in writing on a form acceptable to the Company. The Company is not liable
for any action taken before such written notice is received and recorded. The
Company may require that the policy be returned for any policy change or upon
its surrender.
If the last surviving insured dies while the policy is in effect, notice
should be given to the Company as soon as possible. Claim procedure
instructions will be sent immediately. As due proof of death, the Company may
require proof of age and a certified copy of a death certificate. The Company
may also require the beneficiary and the last surviving insured's next of kin
to sign authorizations as part of this process. These authorization forms allow
the Company to obtain information about the insured, including but not limited
to medical records of physicians and hospitals used by the insured.
63
Payments
Within seven days after the Company receives all the information needed for
processing a payment, the Company will:
(1) Pay death benefit proceeds,
(2) Pay the Cash Value on surrender, partial surrenders and loan proceeds
based on allocations made to the subaccounts, and
(3) Effect a transfer between subaccounts or from the Variable Account to
the Guaranteed Interest Account.
However, the Company can postpone the calculation or payment of such a
payment or transfer of amounts based on investment performance of the
subaccounts if:
. The New York Stock Exchange is closed on other than customary weekend and
holiday closing or trading on the New York Stock Exchange is restricted as
determined by the SEC; or
. An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net assets.
Payment Plan/Settlement Provisions
Maturity or surrender benefits may be used to purchase a payment plan
providing monthly income for the lifetime of the Insured. Death benefit
proceeds may be used to purchase a payment plan providing monthly income for
the lifetime of the beneficiary. The monthly payments consisting of proceeds
plus interest will be paid in equal installments for at least ten years. The
purchase rates for the payment plan are guaranteed not to exceed those shown in
the policy, but current rates that are lower (i.e., providing greater income)
may be established by the Company from time to time. This benefit is not
available if the income would be less than $25 per payment or if the proceeds
are less than $1,000. Maturity or surrender benefits or death benefit proceeds
may be used to purchase any other payment plan that the Company makes available
at that time.
Payment in Case of Suicide
If either insured dies by suicide, (1) while sane or insane, (2) within two
years from the policy date or reinstatement date, the Company will limit the
death benefit proceeds to the premium payments less any partial surrender
amounts (and their fees) and any Outstanding Debt. If an insured dies by
suicide, (1) while sane or insane, (2) within two years of the effective date
of any increase in the Specified Amount, the Company will refund the cost of
insurance charges made with respect to such increase.
This provision may not be applicable in all states.
Assignment
You may assign your policy as collateral security for a loan or other
obligation. No assignment will bind the Company unless the original, or a copy,
is received at the Company's administrative office. The assignment will be
effective only when recorded by the Company. An assignment does not change the
ownership of the policy. However, after an assignment, the rights of any policy
owner or beneficiary will be subject to the assignment. The entire policy,
including any attached payment option or rider, will be subject to the
assignment. The Company will rely solely on the assignee's statement as to the
amount of the assignee's interest. The Company will not be responsible for the
validity of any assignment. Unless otherwise provided, the assignee may
exercise all rights this policy grants except (a) the right to change the
policy owner or beneficiary, and (b) the right to elect a payment option.
Assignment of a policy that is a modified endowment contract may generate
taxable income. (See "Federal Income Tax Considerations", page 52.)
64
Errors on the Application
If the age or gender of an insured has been misstated, the death benefit
under this policy will be the greater of:
(1) What would be purchased by the most recent cost of insurance charge
at the correct age and gender, or
(2) The death benefit derived by multiplying the Fund Value by the death
benefit percentage for the correct age and gender.
If unisex cost of insurance rates apply, no adjustment will be made for a
misstatement of gender. See "Monthly Deductions From Fund Value -- Cost of
Insurance," page 49.
Incontestability
The Company may contest the validity of this policy if any material
misstatements are made in the application. However, the policy will be
incontestable as follows:
(1) The initial Specified Amount cannot be contested after the policy has
been in force during an insured's lifetime for two years from the policy
date; and
(2) An increase in the Specified Amount or any reinstatement cannot be
contested after the increase or the reinstated policy has been in force
during an insured's lifetime for two years from its effective date.
This provision may not be applicable in all states.
Policy Illustrations
Upon request, the Company will send you an illustration of future benefits
under the policy based on both guaranteed and current cost assumptions.
Distribution of the Policy
MONY Securities Corporation ("MSC"), a wholly owned subsidiary of MONY Life
Insurance Company, is principal underwriter (distributor) of the policies. MSC
is registered as a broker-dealer under the Securities Exchange Act of 1934 and
is a member of the National Association of Securities Dealers. The policies are
sold by individuals who are registered representatives of MSC and who are also
licensed as life insurance agents for the Company. The policies may also be
sold through other broker/dealers authorized by MSC and applicable law to do
so.
Except where MSC has authorized other broker/dealers to sell the policies
(as described in the preceding paragraph), compensation payable for the sale of
the policies will be based upon the following schedule. After issue of the
Contract, commissions will equal at most 50 percent of premiums paid up to a
maximum amount. Thereafter, commissions will equal at most 3.0 percent of any
additional premiums plus, on the sixth and each succeeding quarterly
anniversary for so long as the policy shall remain in effect, an annualized
rate of 0.15 percent of the Fund Value of the policy. Upon any subsequent
increase in Specified Amount, commissions will equal at most 50 percent of
premiums paid on or after the increase up to a maximum amount. Thereafter,
commissions will return to no more than the 3.0 percent level. Further,
registered representatives may be eligible to receive certain bonuses and other
benefits based on the amount of earned commissions.
In addition, registered representatives who meet specified production levels
may qualify, under sales incentive programs adopted by Company, to receive
non-cash compensation such as expense-paid trips, expense-paid educational
seminars and merchandise. Company makes no separate deductions, other than
previously described, from premiums to pay sales commissions or sales expenses.
65
MORE ABOUT THE COMPANY
Management
The directors and officers of the Company are listed below. The business
address for all directors and officers of MONY Life Insurance Company of
America is 1740 Broadway, New York, New York 10019. All of the officers and
directors have held their respective positions listed below for five or more
years.
Current Officers and Directors are:
Name Position and Offices with Depositor
---- -----------------------------------
Michael I. Roth..... Director, Chairman and Chief Executive Officer
Samuel J. Foti...... Director, President and Chief Operating Officer
Richard E. Connors.. Director
Richard Daddario.... Director, Vice President and Controller
Phillip A. Eisenberg Director, Vice President and Actuary
Margaret G. Gale.... Director, Vice President
Steven G. Orluck.... Director and Vice President
Michael Slipowitz... Vice President
Evelyn L. Peos...... Vice President
Kenneth M. Levine... Director and Executive Vice President
David S. Waldman.... Secretary
David V. Weigel..... Treasurer
Sam Chiodo.......... Vice President
Charles P. Leone.... Director, Vice President and Chief Corporate
Compliance Officer
No officer or director listed above receives any compensation from MONY
America Variable Account L. The Company or any of its affiliates has paid no
separately allocable compensation to any person listed for services rendered to
the Account.
Set forth below is a description of the business positions during at least
the past five years for the directors and the executive officers of the
Company.
Michael I. Roth is Director, Chairman of the Board and Chief Executive
Officer of the Company. He is Chairman of the Board (since July 1993) and Chief
Executive Officer (since January 1993) of MONY and has been a Director since
May 1991. Mr. Roth is also a director of the following subsidiaries of MONY:
1740 Advisers, Inc. (since December 1992), MONY Benefits Management Corp.
(since March 1999). Mr. Roth has been with MONY for 12 years. Mr. Roth serves
on the board of directors of the American Council of Life Insurance, The Life
Insurance Council of New York, Enterprise Foundation (a charitable foundation
which develops housing not affiliated with the Enterprise Group of Funds),
Metropolitan Development Association of Syracuse and Central New York,
Enterprise Group of Funds, Inc., Enterprise Accumulation Trust, Pitney Bowes,
Inc., Lincoln Center for the Performing Arts Leadership Committee, Life Office
Management Association, New York City Partnership and Chamber of Commerce, and
Committee for Economic Development. He is also Chairman of the Board of
Insurance Marketplace Standards Association.
Samuel J. Foti is Director, President and Chief Operating Officer of the
Company. He is President and Chief Operating Officer (since February 1994) of
MONY and has been a Director since January 1993. Mr. Foti is also a director of
the following subsidiaries of MONY: MONY Brokerage, Inc. (since January 1990),
MONY International Holdings, Inc. (since October 1994), MONY Benefits
Management Corp. (since March 1999), MONY Life Insurance Company of the
Americas, Ltd., (since December 1994) and MONY Bank & Trust Company of the
Americas, Ltd. (since December 1994). Mr. Foti has been with MONY for 12 years.
Mr. Foti
66
serves on the board of directors of Enterprise Group of Funds, Inc., Enterprise
Accumulation Trust and The American College of which he is Chairman.
Richard Daddario is Director, Vice President and Controller of the Company.
He is Executive Vice President and Chief Financial Officer (since April 1994)
of MONY. Mr. Daddario is also a director of the following subsidiaries of MONY:
MONY International Holdings, Inc. (since 1998), MONY Brokerage, Inc. (since
June 1997) and MONY Life Insurance Company of the Americas, Ltd. (since
December 1997). He also serves as MONY's Chief Financial Officer (from January
1991 to present). Mr. Daddario has been with MONY for 11 years.
Kenneth M. Levine is Director and Executive Vice President of the Company.
He is Executive Vice President (since February 1990) and Chief Investment
Officer (since January 1991) of MONY and has been a Trustee since May 1994. Mr.
Levine is also a director of the following subsidiaries of MONY: 1740 Advisers,
Inc. (since December 1989), MONY Benefits Management Corp. (since October
1991), MONY Realty Partners, Inc. (since October 1991) and 1740 Ventures, Inc.
(since October 1991). He is also Chairman of the Board and President of MONY
Series Fund, Inc. (since December 1991). Mr. Levine has been with MONY for 28
years.
Sam Chiodo is Vice President of the Company. He is Vice President --
Corporate & Strategic Marketing of MONY (since 1993). Mr. Chiodo has been with
MONY for 28 years.
Richard E. Connors is Director of the Company. He is Senior Vice President
of MONY (since February 1994). Mr. Connors is also a director of the following
subsidiary of MONY: MONY Brokerage, Inc. (since May 1994). Mr. Connors has been
with MONY for 12 years.
Phillip A. Eisenberg is Director, Vice President and Actuary of the Company.
He is Senior Vice President and Chief Actuary of MONY (since April 1993). Mr.
Eisenberg is a director of the following subsidiary of MONY: MONY Benefits
Management Corp. Mr. Eisenberg has been with MONY for 36 years.
Margaret G. Gale is Director and Vice President of the Company. She is Vice
President of MONY (since February 1991). Ms. Gale has been with MONY for 22
years.
William D. Goodwin is Vice President of the Company. He is Senior Vice
President of MONY (since November 1998). He has also served as Senior Managing
Director (from 1989 to 1998). Mr. Goodwin has been with MONY for 26 years.
Charles P. Leone is Director, Vice President and Chief Compliance Officer of
the Company. He is Vice President and Chief Corporate Compliance Officer of
MONY (since 1996). He has also served as Vice President of MONY (from 1987 to
1996). Mr. Leone is a director of the following subsidiary of MONY: MONY
Securities Corporation (since May 1999). Mr. Leone has been with MONY for 36
years.
Steven G. Orluck is Vice President of the Company. He is Senior Vice
President, Complementary Distribution of MONY (since March 2000) and has also
served as Vice President (from July 1998 to March 2000). Prior to 1998, Mr.
Orluck had been a Vice President of Metropolitan Life Insurance Company where
he worked for 25 years.
Evelyn L. Peos is Vice President of the Company. She is Vice President of
MONY. Ms. Peos has been with MONY for 23 years.
Michael Slipowitz is Vice President of the Company. He is Vice President of
MONY. Mr. Slipowitz has been with MONY for 20 years.
David S. Waldman is Secretary of the Company. He is Assistant Vice President
and Senior Counsel -- Operations (since 1992). Mr. Waldman has been with MONY
for 18 years.
67
David V. Weigel is Treasurer of the Company. He is Vice President --
Treasurer of MONY (since 1994). Mr. Weigel has been with MONY for 27 years.
State Regulation
The Company is subject to the laws of the state of Arizona governing
insurance companies and to regulation by the Commissioner of Insurance of
Arizona. In addition, it is subject to the insurance laws and regulations of
the other states and jurisdictions in which it is licensed or may become
licensed to operate. An annual statement in a prescribed form must be filed
with the Commissioner of Insurance of Arizona and with regulatory authorities
of other states on or before March 1st in each year. This statement covers the
operations of the Company for the preceding year and its financial condition as
of December 31st of that year. The Company's affairs are subject to review and
examination at any time by the Commissioner of Insurance or his agents, and
subject to full examination of Company's operations at periodic intervals.
Telephone Transfer Privileges
You may request a transfer of Fund Value or change allocation instructions
for future premiums by telephone if an authorization for telephone transfer
form has been completed, signed, and received at the Company's Syracuse
Operations Center. The Company may record all or part of any telephone
conversation with respect to transfer and allocation instructions. Telephone
instructions received by the Company by 4:00 p.m. Eastern time on any valuation
date will be effected as of the end of that valuation date in accordance with
your instructions, subject to the limitations stated in this prospectus
(presuming that the Right to Return Policy Period has expired). The Company
reserves the right to deny any telephone transfer or allocation request. If all
telephone lines are busy (which might occur, for example, during periods of
substantial market fluctuations), you might not be able to request transfers by
telephone and would have to submit written requests. Telephone transfer and
allocation instructions will only be accepted if complete and correct.
The Company has adopted guidelines (which it believes to be reasonable)
relating to telephone transfers and allocation instructions. These guidelines,
among other things, outline procedures to be followed which are designed to
prevent unauthorized instructions. If these procedures are followed, the
Company shall not be liable for, and you will therefore bear the entire risk
of, any loss as a result of the Company's following telephone instructions if
such instructions prove to be fraudulent. A copy of the guidelines and the
Company's form for electing telephone transfer privileges is available from
licensed agents of the Company who are also registered representatives of MSC
or by calling 1-800-487-6669. The Company's form must be signed and received at
the Company's Syracuse Operations Center before telephone transfers will be
accepted.
Legal Proceedings
There are no legal proceedings pending to which MONY America Variable
Account L is a party, or which would materially affect MONY America Variable
Account L.
Legal Matters
Legal matters have been passed on by Arthur D. Woods, Vice President --
Variable Products and Broker-Dealer Operations Counsel of MONY Life Insurance
Company in connection with
(1) the issue and sale of the policies described in this prospectus,
(2) the organization of the Company,
(3) the Company's authority to issue the policies under Arizona law, and
(4) the validity of the forms of the policies under Arizona law.
68
Robert Levy, Vice President -- Chief Tax and Benefits Counsel of MONY Life
Insurance Company has passed upon legal matters relating to the federal income
tax laws.
Registration Statement
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the
Registration Statement, as portions have been omitted pursuant to the rules and
regulations of the SEC. The omitted information may be obtained at the SEC's
principal office in Washington, D.C., upon payment of the SEC's prescribed
fees.
Independent Accountants
The audited financial statements for the Company included in this Prospectus
and in the Registration Statement have been audited by PricewaterhouseCoopers
LLP, independent accountants, as indicated in their reports herein. The audited
financial statements are included in reliance upon the authority of said firm
as experts in accounting and auditing. PricewaterhouseCoopers LLP's office is
located at 1177 Avenue of the Americas, New York, New York, 10036.
Financial Statements
The audited financial statements of the Company are set forth herein.
The financial statements of the Company have been audited by
PricewaterhouseCoopers LLP. The financial statements of the Company should be
considered only as bearing upon the ability of the Company to meet its
obligations under the Policies.
69
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
Page
----
With respect to MONY America Variable Account L:
No financial statements for MONY America Variable Account L are included because although the MONY America
Variable Account L commenced operations in 1985, the subaccounts available to policyholders had not commenced
operations as of December 31, 2001
With respect to MONY Life Insurance Company of America:
Unaudited interim condensed consolidated balance sheets as of September 30, 2001 and 2000............................. F-
Unaudited interim condensed consolidated statements of income and comprehensive income for the three-month periods
ended September 30, 2001 and 2000................................................................................... F-
Unaudited interim condensed consolidated statements of income and comprehensive income for the nine-month periods
ended September 30, 2001 and 2000................................................................................... F-
Unaudited interim condensed consolidated statement of changes in shareholder's equity for the nine-month periods ended
September 30, 2001 and 2000......................................................................................... F-
Unaudited interim condensed consolidated statements of cash flows for the nine-month periods ended September 30,
2001 and 2000....................................................................................................... F-
Report of Independent Accountants..................................................................................... F-38
Balance sheets as of December 31, 2000 and 1999....................................................................... F-39
Statements of income and comprehensive income for the years ended December 31, 2000, 1999 and 1998.................... F-40
Statements of changes in shareholder's equity for the years ended December 31, 2000, 1999 and 1998.................... F-41
Statements of cash flows for the years ended December 31, 2000, 1999 and 1998......................................... F-42
Notes to financial statements......................................................................................... F-44
F-1
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
MONY Life Insurance Company of America
In our opinion, the accompanying balance sheets and the related statements
of income and comprehensive income, changes in shareholder's equity and cash
flows present fairly, in all material respects, the financial position of MONY
Life Insurance Company of America (the "Company") at December 31, 2000 and
1999, and the results of its operations and its cash flows for each of the
three years in the period ended December 31, 2000, in conformity with
accounting principles generally accepted in the United States. These financial
statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 8, 2001
F-38
MONY LIFE INSURANCE COMPANY OF AMERICA
BALANCE SHEET
December 31, 2000 and 1999
2000 1999
-------- --------
($ in millions)
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value................................ $1,014.7 $1,048.8
Mortgage loans on real estate (Note 8)..................................................... 116.1 165.0
Policy loans............................................................................... 69.4 58.8
Real estate (Note 8)....................................................................... 5.4 6.9
Other invested assets...................................................................... 3.4 2.3
-------- --------
1,209.0 1,281.8
Cash and cash equivalents................................................................... 104.8 28.9
Accrued investment income................................................................... 19.2 20.4
Amounts due from reinsurers................................................................. 30.7 18.6
Deferred policy acquisition costs........................................................... 483.5 406.4
Current Federal Income Taxes................................................................ 14.9 2.3
Other assets................................................................................ 4.4 24.9
Separate account assets..................................................................... 4,064.4 4,387.2
-------- --------
Total assets......................................................................... $5,930.9 $6,170.5
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................................................... $ 134.8 $ 123.4
Policyholders' account balances............................................................. 1,154.9 1,154.1
Other policyholders' liabilities............................................................ 68.9 54.0
Accounts payable and other liabilities...................................................... 33.2 79.5
Note payable to affiliate................................................................... 46.9 49.0
Deferred federal income taxes (Note 5)...................................................... 48.3 19.4
Separate account liabilities................................................................ 4,064.4 4,387.2
-------- --------
Total liabilities.................................................................... 5,551.4 5,866.6
Commitments and contingencies (Notes 12)
Common stock $1.00 par value; 5,000,000 shares authorized, 2,500,000 issued and outstanding 2.5 2.5
Capital in excess of par.................................................................... 249.7 199.7
Retained earnings........................................................................... 128.3 109.0
Accumulated other comprehensive income/(loss)............................................... (1.0) (7.3)
-------- --------
Total shareholder's equity........................................................... 379.5 303.9
-------- --------
Total liabilities and shareholder's equity........................................... $5,930.9 $6,170.5
======== ========
See accompanying notes to financial statements.
F-39
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998
------ ------ ------
($ in millions)
Revenues:
Universal life and investment-type product policy fees $158.2 $143.1 $122.0
Premiums.............................................. 37.3 9.2 1.7
Net investment income (Note 6)........................ 92.7 94.7 94.6
Net realized gains (losses) on investments (Note 6)... (5.1) (0.3) 7.1
Other income.......................................... 12.1 7.6 7.6
------ ------ ------
295.2 254.3 233.0
------ ------ ------
Benefits and Expenses:
Benefits to policyholders............................. 68.1 43.6 34.9
Interest credited to policyholders' account balances.. 62.4 63.5 65.1
Amortization of deferred policy acquisition costs..... 48.8 43.5 35.5
Other operating costs and expenses.................... 88.6 73.8 75.6
------ ------ ------
267.9 224.4 211.1
------ ------ ------
Income before income taxes............................ 27.3 29.9 21.9
Income tax expense.................................... 8.0 10.5 7.7
------ ------ ------
Net income............................................ 19.3 19.4 14.2
Other comprehensive income/(loss), net (Note 6)....... 6.3 (15.3) 1.1
------ ------ ------
Comprehensive income.................................. $ 25.6 $ 4.1 $ 15.3
====== ====== ======
See accompanying notes to financial statements.
F-40
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
Years Ended December 31, 2000, 1999 and 1998
Accumulated
Capital Other Total
Common In Excess Retained Comprehensive Shareholder's
Stock of Par Earnings Income/(Loss) Equity
------ --------- -------- ------------- -------------
Balance, December 31, 1997.................................... 2.5 177.2 75.4 6.9 262.0
Capital contribution.......................................... 12.5 12.5
Comprehensive income:
Net income................................................... 14.2 14.2
Other comprehensive income:
Unrealized gains on investments, net of unrealized losses,
reclassification adjustments, and taxes (Note 6)......... 1.1 1.1
---- ------ ------ ------ ------
Comprehensive income.......................................... 15.3
---- ------ ------ ------ ------
Balance, December 31, 1998.................................... 2.5 189.7 89.6 8.0 289.8
Capital contribution.......................................... 10.0 10.0
Comprehensive income:
Net income................................................... 19.4 19.4
Other comprehensive income:
Unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes (Note 6)......... (15.3) (15.3)
---- ------ ------ ------ ------
Comprehensive income/(loss)................................... 4.1
---- ------ ------ ------ ------
Balance, December 31, 1999.................................... $2.5 $199.7 $109.0 $ (7.3) $303.9
Capital contribution.......................................... 50.0 50.0
Comprehensive income:
Net income................................................... 19.3 19.3
Other comprehensive income:
Unrealized gains on investments, net of unrealized losses,
reclassification adjustments, and taxes (Note 6)......... 6.3 6.3
---- ------ ------ ------ ------
Comprehensive income.......................................... 25.6
---- ------ ------ ------ ------
Balance, December 31, 2000.................................... $2.5 $249.7 $128.3 $ (1.0) $379.5
==== ====== ====== ====== ======
See accompanying notes to financial statements.
F-41
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
Years Ended December 31, 2000, 1999 and 1998
2000 1999 1998
------- ------- -------
($ in millions)
Cash flows from operating activities (see Note 2):
Net income..................................................................... $ 19.3 $ 19.4 $ 14.2
Adjustments to reconcile net income to net cash (used in) operating activities:
Interest credited to policyholders' account balances.......................... 57.5 65.5 64.1
Universal life and investment-type product policy fee income.................. (87.0) (102.9) (107.0)
Capitalization of deferred policy acquisition costs........................... (130.3) (96.8) (74.9)
Amortization of deferred policy acquisition costs............................. 48.8 43.5 35.5
Provision for depreciation and amortization................................... (0.4) 0.2 1.0
Provision for deferred federal income taxes................................... 25.6 13.9 (1.1)
Net realized gains on investments............................................. 5.1 0.3 (7.1)
Change in other assets and accounts payable and other liabilities............. (46.5) 6.3 45.3
Change in future policy benefits.............................................. 11.4 4.4 5.9
Change in other policyholders' liabilities.................................... 14.9 (2.8) 15.7
Change in current federal income taxes payable................................ (12.6) (15.6) (4.6)
------- ------- -------
Net cash (used in) operating activities........................................ (94.2) (64.6) (13.0)
------- ------- -------
Cash flows from investing activities:
Sales, maturities or repayments of:
Fixed maturities.............................................................. 223.2 289.6 171.4
Equity securities............................................................. 0.0 0.0 0.8
Mortgage loans on real estate................................................. 68.2 24.5 37.6
Real estate................................................................... 2.3 1.2 17.0
Other invested assets......................................................... 0.0 3.9 0.6
Acquisitions of investments:
Fixed maturities.............................................................. (170.0) (352.3) (109.2)
Equity securities............................................................. (0.3) (0.2) (0.1)
Mortgage loans on real estate................................................. (19.3) (69.7) (24.3)
Real estate................................................................... (0.9) (0.7) (0.6)
Other invested assets......................................................... (0.8) (0.5) (0.3)
Policy loans, net............................................................. (10.6) (6.6) (6.2)
Other, net.................................................................... -- 0.5 (0.5)
------- ------- -------
Net cash (used in)/provided by investing activities............................ $ 91.8 $(110.3) $ 86.2
------- ------- -------
See accompanying notes to financial statements.
F-42
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
Years Ended December 31, 2000, 1999 and 1998
2000 1999 1998
--------- --------- -------
($ in millions)
Cash flows from
financing activities:
Note payable to
affiliate............ $ 0.0 $ 50.5 $ 0.0
Repayments of note to
affiliate............ (2.1) (1.5) 0.0
Receipts from annuity
and universal life
policies credited to
policyholders'
account balances..... 1,538.6 1,395.4 811.8
Return of
policyholders'
account balances on
annuity policies and
universal life
policies............. (1,508.2) (1,384.0) (797.6)
Capital contribution.. 50.0 10.0 0.0
--------- --------- -------
Net cash provided
by/(used in) financing
activities............ 78.3 70.4 14.2
--------- --------- -------
Net increase/(decrease)
in cash and cash
equivalents........... 75.9 (104.5) 87.4
Cash and cash
equivalents, beginning
of year............... 28.9 133.4 46.0
--------- --------- -------
Cash and cash
equivalents, end of
year.................. $ 104.8 $ 28.9 $ 133.4
========= ========= =======
Supplemental disclosure
of cash flow
information:
Cash paid during the
period for:
Income taxes............ $ (5.0) $ 12.1 $ 13.4
Interest................ $ 3.3 $ 2.5 $ --
See accompanying notes to financial statements.
F-43
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS
1. Organization and Description of Business:
MONY Life Insurance Company of America (the "Company"), an Arizona stock
life insurance company, is a wholly-owned subsidiary of MONY Life Insurance
Company of New York ("MONY Life"), formerly The Mutual Life Insurance Company
of New York, which converted from a mutual life insurance company to a stock
life insurance company (the "Demutualization"). MONY Life is a wholly-owned
subsidiary of The MONY Group, Inc. (the "MONY Group").
The Company's primary business is to provide asset accumulation and life
insurance products to business owners, growing families, and pre-retirees. The
Company's insurance and financial products are marketed and distributed
directly to individuals primarily through MONY Life's career agency sales
force. These products are sold throughout the United States (except New York)
and Puerto Rico.
2. Summary of Significant Accounting Policies:
Basis of Presentation
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles ("GAAP"). The preparation of financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ significantly from those
estimates. The most significant estimates made in conjunction with the
preparation of the Company's financial statements include those used in
determining (i) deferred policy acquisition costs, (ii) the liability for
future policy benefits, and (iii) valuation allowances for mortgage loans and
real estate to be disposed of, and impairment writedowns for real estate held
for investment.
Valuation of Investments and Realized Gains and Losses
All of the Company's fixed maturity securities are classified as
available-for-sale and are reported at estimated fair value. Unrealized gains
and losses on fixed maturity securities are reported as a separate component of
other comprehensive income, net of deferred income taxes and an adjustment for
the effect on deferred policy acquisition costs that would have occurred if
such gains and losses had been realized. The cost of fixed maturity securities
is adjusted for impairments in value deemed to be other than temporary. These
adjustments are reflected as realized losses on investments. Realized gains and
losses on sales of investments are determined on the basis of specific
identification.
Mortgage loans on real estate are stated at their unpaid principal balances,
net of valuation allowances. Valuation allowances are established for the
excess of the carrying value of a mortgage loan over its estimated fair value
when the loan is considered to be impaired. Mortgage loans are considered to be
impaired when, based on current information and events, it is probable that the
Company will be unable to collect all amounts due according to the contractual
terms of the loan agreement. Estimated fair value is based on either the
present value of expected future cash flows discounted at the loan's original
effective interest rate, or the loan's observable market price (if considered
to be a practical expedient), or the fair value of the collateral if the loan
is collateral dependent and if foreclosure of the loan is considered probable.
The provision for loss is reported as a realized loss on investment. Loans in
foreclosure and loans considered to be impaired, other than restructured loans,
are placed on non-accrual status. Interest received on non-accrual status
mortgage loans is included in investment income in the period received.
Interest income on restructured mortgage loans is accrued at the restructured
loans' interest rate.
Real estate held for investment, as well as related improvements, is
generally stated at cost less depreciation. Depreciation is determined using
the straight-line method over the estimated useful life of the asset (which may
range from 5 to 40 years). Cost is adjusted for impairment whenever events or
changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. In performing the review for recoverability, management
estimates the future cash flows expected from real estate investments,
including the proceeds on disposition. If the sum of the expected undiscounted
future cash flows is less than the
F-44
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
carrying amount of the real estate, an impairment loss is recognized.
Impairment losses are based on the estimated fair value of the real estate,
which is generally computed using the present value of expected future cash
flows from the real estate discounted at a rate commensurate with the
underlying risks. Real estate acquired in satisfaction of debt is recorded at
estimated fair value at the date of foreclosure. Real estate that management
intends to sell is classified as "to be disposed of". Real estate to be
disposed of is reported at the lower of its current carrying value or estimated
fair value less estimated sales costs. Changes in reported values relating to
real estate to be disposed of and impairments of real estate held for
investment are reported as realized gains or losses on investments.
Policy loans are carried at their unpaid principal balances.
Cash and cash equivalents include cash on hand, amounts due from banks and
highly liquid debt instruments with an original maturity of three months or
less.
Recognition of Insurance Revenue and Related Benefits
Premiums from universal life and investment-type contracts are reported as
deposits to policyholders' account balances. Revenue from these types of
products consists of amounts assessed during the period against policyholders'
account balances for policy administration charges, cost of insurance and
surrender charges and mortality and expense charges on variable contracts.
Policy benefits charged to expense include benefit claims incurred in the
period in excess of the related policyholders' account balance.
Premiums from non-participating term life and annuity policies with life
contingencies are recognized as premium income when due. Benefits and expenses
are matched with such income so as to result in the recognition of profits over
the life of the contracts. This match is accomplished by means of the provision
for liabilities for future policy benefits and the deferral and subsequent
amortization of policy acquisition costs.
Deferred Policy Acquisition Costs ("DAC")
The costs of acquiring new business, principally commissions, underwriting,
agency, and policy issue expenses, all of which vary with and are primarily
related to the production of new business, are deferred.
For universal life products and investment-type products, DAC is amortized
over the expected life of the contracts (ranging from 15 to 30 years) as a
constant percentage based on the present value of estimated gross profits
expected to be realized over the life of the contracts using the initial
locked-in discount rate. The discount rate for all products is 8%. Estimated
gross profits arise principally from investment results, mortality and expense
margins and surrender charges.
For non-participating term policies, DAC is amortized over the expected life
of the contracts (ranging from 10 to 20 years) in proportion to premium revenue
recognized.
DAC is subject to recoverability testing at the time of policy issuance and
loss recognition testing at the end of each accounting period. The effect on
the amortization of DAC of revisions in estimated experience is reflected in
earnings in the period such estimates are revised. In addition, the effect on
the DAC asset that would result from the realization of unrealized gains
(losses) is recognized through an offset to Other Comprehensive Income as of
the balance sheet date.
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances for universal life and investment-type
contracts represent an accumulation of gross premium payments plus credited
interest less expense and mortality charges and withdrawals. The weighted
average interest crediting rate for universal life products was approximately
5.9%, 6.1% and 5.9% for the years ended December 31, 2000, 1999 and 1998,
F-45
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
respectively. The weighted average interest crediting rate for investment-type
products was approximately 5.2%, 5.4% and 5.5% for each of the years ended
December 31, 2000, 1999 and 1998, respectively.
GAAP reserves for non-participating term life policies are calculated using
a net level premium method on the basis of actuarial assumptions equal to
expected investment yields, mortality, terminations, and expenses applicable at
the time the insurance contracts are made, including a provision for the risk
of adverse deviation.
Federal Income Taxes
The Company files a consolidated federal income tax return with its parent,
MONY Life, along with MONY Life's other life and non-life subsidiaries.
Deferred income tax assets and liabilities are recognized based on the
difference between financial statement carrying amounts and income tax bases of
assets and liabilities using enacted income tax rates and laws.
The method of allocation between the companies is subject to written
agreement, approved by the Board of Directors. The allocation of federal income
taxes will be based upon separate return calculations with current credit for
losses and other federal income tax credits provided to the life insurance
members of the affiliated group. Intercompany balances are settled annually in
the fourth quarter of the year in which the return is filed.
Reinsurance
The Company has reinsured certain of its life insurance and annuity business
with life contingencies with other insurance companies under various
agreements. Amounts due from reinsurers are estimated based on assumptions
consistent with those used in establishing the liabilities related to the
underlying reinsured contracts. Policy and contract liabilities are reported
gross of reserve credits. Gains on reinsurance are deferred and amortized into
income over the remaining life of the underlying reinsured contracts.
In determining whether a reinsurance contract qualifies for reinsurance
accounting, SFAS No. 113 "Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts" requires that there be a
"reasonable possibility" that the reinsurer may realize a "significant loss"
from assuming insurance risk under the contract. In making this assessment, the
Company projects the results of the policies reinsured under the contract under
various scenarios and assesses the probability of such results actually
occurring. The projected results represent the present value of all the cash
flows under the reinsurance contract. The Company generally defines a
"reasonable possibility" as having a probability of at least 10%. In assessing
whether the projected results of the reinsured business constitute a
"significant loss", the Company considers: (i) the ratio of the aggregate
projected loss, discounted at an appropriate rate of interest (the "aggregate
projected loss"), to an estimate of the reinsurer's investment in the contract,
as hereafter defined, and (ii) the ratio of the aggregate projected loss to an
estimate of the total premiums to be received by the reinsurer under the
contract discounted at an appropriate rate of interest.
The reinsurer's investment in a reinsurance contract consists of amounts
paid to the ceding company at the inception of the contract (e.g. expense
allowances and the excess of liabilities assumed by the reinsurer over the
assets transferred to the reinsurer under the contract) plus the amount of
capital required to support such business consistent with prudent business
practices, regulatory requirements, and the reinsurer's credit rating. The
Company estimates the capital required to support such business based on what
it considers to be an appropriate level of risk-based capital in light of
regulatory requirements and prudent business practices.
Separate Accounts
Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of
the Company. Separate account assets are subject to general account claims only
to the extent that the value of such assets exceeds the separate account
liabilities. Investments held in separate accounts and liabilities of the
separate
F-46
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
accounts are reported separately as assets and liabilities. Substantially all
separate account assets are reported at estimated fair value. Investment income
and gains or losses on the investments of separate accounts accrue directly to
contractholders and, accordingly, are not reflected in the Company's statements
of income and cash flows. Fees charged to the separate accounts by the Company
(including mortality charges, policy administration fees and surrender charges)
are reflected in the Company's revenues.
Statements of Cash Flows -- Non-cash Transactions
For the years ended December 31, 2000, 1999 and 1998, respectively, real
estate of $0.0 million, $0.0 million and $0.5 million was acquired in
satisfaction of debt. At December 31, 2000 and 1999, the Company owned real
estate acquired in satisfaction of debt of $5.4 million and $6.9 million,
respectively.
New Accounting Pronouncements
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 requires all derivatives to be
recognized in the statement of financial position as either assets or
liabilities and measured at fair value. The corresponding derivative gains and
losses should be reported based on the hedge relationship that exists, if there
is one. Changes in the fair value of derivatives that are not designated as
hedges or that do not meet the hedge accounting criteria in SFAS 133, are
required to be reported in earnings. SFAS 133, as amended by SFAS 137, is
effective for all fiscal quarters of the fiscal years beginning after June 15,
2000. SFAS 137 delayed the effective date of SFAS 133 by one year. Adoption of
SFAS 133 is not expected to have a material effect on the Company's financial
condition or results of operations.
3. Related Party Transactions:
MONY Life has a guarantee outstanding to one state that the statutory
surplus of the Company will be maintained at amounts at least equal to the
minimum surplus for admission to that states.
At December 31, 2000 and 1999, approximately 13% and 11% of the Company's
investments in mortgages were held through joint participation with MONY Life,
respectively. In addition, 100% of the Company's real estate and joint venture
investments were held through joint participation with MONY Life at December
31, 2000 and 1999.
The Company and MONY Life are parties to an agreement whereby MONY Life
agrees to reimburse the Company to the extent that the Company's recognized
loss as a result of mortgage loan default or foreclosure or subsequent sale of
the underlying collateral exceeds 75% of the appraised value of the loan at
origination for each such mortgage loan. Pursuant to the agreement, the Company
received payments from MONY Life of $0.0 million, 0.0 million and $0.1 million
for the years ending December 31, 2000, 1999 and 1998.
The Company has a service agreement with MONY Life whereby MONY Life
provides personnel services, facilities, supplies and equipment to the Company
to conduct its business. The associated costs related to the service agreement
are allocated to the Company based on methods that management believes are
reasonable, including a review of the nature of such costs and time studies
analyzing the amount of employee compensation costs incurred by the Company.
For the years ended December 31, 2000, 1999 and 1998, the Company incurred
expenses of $55.9 million, 51.0 million and $59.8 million as a result of such
allocations. At December 31, 2000 and 1999 the Company had a payable to MONY
Life in connection with this service agreement of $10.7 million and 10.3
million, respectively, which is reflected in Accounts Payable and Other
Liabilities.
The Company has an investment advisory agreement with MONY Life whereby MONY
Life provides investment advisory services with respect to the investment and
management of the Company's investment portfolio. The amount of expenses
incurred by the Company related to this agreement was $0.8 million, 0.8 million
and $0.9 million for 2000, 1999 and 1998, respectively. In addition, the
Company recorded an intercompany payable of $74,062 and $66,816 at December 31,
2000 and 1999, respectively, related to this agreement which is included in
Accounts Payable and Other Liabilities in the balance sheet.
F-47
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
In addition to the agreements discussed above, the Company has various other
service and investment advisory agreements with MONY Life and affiliates of the
Company. The amount of expenses incurred by the Company related to these
agreements was $3.6 million, 4.0 million and $2.0 million for 2000, 1999 and
1998, respectively. In addition, the Company recorded an intercompany
(receivable)/payable of $0.5 million and 0.2 million at December 31, 2000 and
1999, respectively, related to these agreements.
The Company has purchased bonds issued by the New York City Industrial
Development Agency for the benefit of MONY Life for its consolidation of site
locations to New York City in 1997, and subsequent spending on tenant
improvements, and furniture, fixtures, and equipment related to the New York
City site. Debt service under the bonds is funded by lease payments by MONY
Life to the bond trustee for the benefit of the bondholder (the Company). The
bonds are held by the Company and are listed as affiliated bonds. The carrying
value of these bonds is $1.5 million and $10.9 as of December 31, 2000, and
December 31, 1999, respectively. The bond outstanding as of December 31, 2000
matures on December 31, 2013, and has an interest rate of 7.16%. The Company
earned $0.1 million, $1.2 million, and $1.1 million of interest on these bonds
for the years ended December 31, 2000, 1999, and 1998 respectively.
The Company entered into a modified coinsurance agreement with U.S.
Financial Life Insurance Company ("USFL"), an affiliate, effective January 1,
1999, whereby the Company agrees to reinsure 90% of all level term life
insurance policies written by USFL after January 1, 1999. Effective January 1,
2000, this agreement was amended to reinsure 90% of all term life and universal
life insurance policies written by USFL, after January 1, 2000. Under the
agreement, the Company will share in all premiums and benefits for such
policies based on the 90% quota share percentage, after consideration of
existing reinsurance agreements previously in force on this business. In
addition, the Company will reimburse USFL for its quota share of expense
allowances, as defined in the agreement. At December 31, 2000 and 1999, the
Company recorded a payable of $6.2 million and $7.8 million, respectively to
USFL in connection with this agreement which is included in Accounts Payable
and Other Liabilities in the balance sheet.
The Company recorded capital contributions from MONY Life of $50.0 million,
$10.0 million, and $12.5 million for the years ended December 31, 2000, 1999,
and 1998, respectively.
On March 5, 1999, the Company borrowed $50.5 million from MONY Benefits
Management Corp. ("MBMC"), an affiliate, in exchange for a note payable in the
same amount. The note bears interest at 6.75% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
of the note as of December 31, 2000 is $46.9 million.
4. Deferred Policy Acquisition Costs:
Policy acquisition costs deferred and amortized in 2000, 1999 and 1998 are
as follows:
2000 1999 1998
------ ------ ------
($ in millions)
Balance, beginning of year........ $406.4 $318.6 $281.6
Cost deferred during the year..... 139.8 96.8 75.0
Amortized to expense during the
year............................ (48.8) (43.5) (35.5)
Effect on DAC from unrealized
gains (losses)(see Note 2)...... (13.9) 34.5 (2.5)
------ ------ ------
Balance, end of year.............. $483.5 $406.4 $318.6
====== ====== ======
F-48
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
5. Federal Income Taxes:
The Company files a consolidated federal income tax return with MONY Life
and MONY Life's other subsidiaries. Federal income taxes have been calculated
in accordance with the provisions of the Internal Revenue Code of 1986, as
amended. A summary of the Federal income tax expense (benefit) is presented
below:
2000 1999 1998
------ ----- -----
($ in millions)
Federal income tax expense
(benefit):
Current........................ $(17.6) $(3.4) $ 8.8
Deferred....................... 25.6 13.9 (1.1)
------ ----- -----
Total...................... $ 8.0 $10.5 $ 7.7
====== ===== =====
Federal income taxes reported in the statements of income may be different
from the amounts determined by multiplying the earnings before federal income
taxes by the statutory federal income tax rate of 35%. The sources of the
difference and the tax effects of each are as follows:
2000 1999 1998
----- ----- -----
($ in millions)
Tax at statutory rate............. $ 9.6 $10.5 $ 7.7
Dividends received deduction...... (1.7) (1.1) (1.1)
Other............................. 0.1 1.1 1.1
----- ----- -----
Provision for income taxes........ $ 8.0 $10.5 $ 7.7
===== ===== =====
The Company's federal income tax returns for years through 1993 have been
examined by the Internal Revenue Service ("IRS"). No material adjustments were
proposed by the IRS as a result of these examinations. In the opinion of
management, adequate provision has been made for any additional taxes, which
may become due with respect to open years.
The components of deferred tax liabilities and assets at December 31, 2000
and 1999 are as follows:
2000 1999
------ ------
($ in millions)
Deferred policy acquisition costs.... $138.8 $117.0
Fixed maturities..................... 0.0 0.0
Other, net........................... (2.2) 7.8
------ ------
Total deferred tax
liabilities................. $136.6 $124.8
------ ------
Policyholder and separate account
liabilities........................ 86.8 96.5
Real estate and mortgages............ 0.9 0.7
Fixed maturities..................... 0.6 8.2
------ ------
Total deferred tax assets..... 88.3 105.4
------ ------
Net deferred tax
asset/(liability)........... $(48.3) $(19.4)
====== ======
The Company is required to establish a valuation allowance for any portion
of the deferred tax asset that management believes will not be realized. In the
opinion of management, it is more likely than not that it will realize the
benefit of the deferred tax assets and, therefore, no such valuation allowance
has been established.
F-49
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
6. Investment Income, Realized and Unrealized Investment Gains (Losses), and
Other Comprehensive Income:
Net investment income for the years ended December 31, 2000, 1999 and 1998
was derived from the following sources:
2000 1999 1998
----- ----- -----
($ in millions)
Net Investment Income
Fixed maturities.................. $75.0 $77.0 $77.2
Mortgage loans.................... 11.2 11.6 11.0
Real estate....................... 0.4 0.5 0.5
Policy loans...................... 4.5 3.8 3.6
Other investments (including cash
& cash equivalents)............. 5.9 6.6 5.3
----- ----- -----
Total investment income........... 97.0 99.5 97.6
Investment expenses............... 4.3 4.8 3.0
----- ----- -----
Net investment income............. $92.7 $94.7 $94.6
===== ===== =====
Net realized gains (losses) on investments for the years ended December 31,
2000, 1999 and 1998 are summarized as follows:
2000 1999 1998
----- ----- ----
($ in millions)
Net Realized Gains (Losses) on
Investments
Fixed maturities.................. $(5.3) $(0.2) $2.6
Mortgage loans.................... 0.1 (0.3) 1.4
Real estate....................... 0.1 (0.5) 2.5
Other invested assets............. 0.0 0.7 0.6
----- ----- ----
Net realized gains/(losses) on
investments..................... $(5.1) $(0.3) 7.1
===== ===== ====
The net change in unrealized investment gains (losses) represents the only
component of other comprehensive income for the years ended December 31, 2000,
1999 and 1998. Following is a summary of the change in unrealized investment
gains (losses) net of related deferred income taxes and adjustment for deferred
policy acquisition costs (see Note 2), which are reflected in Accumulated Other
Comprehensive Income for the periods presented:
2000 1999 1998
------ ------ -----
($ in millions)
Change in unrealized gains
(losses) on investments, net
Fixed maturities.................. $ 23.4 $(58.0) $ 4.8
Other............................. 0.0 0.0 (0.6)
------ ------ -----
Subtotal.......................... 23.4 (58.0) 4.2
Effect on unrealized gains
(losses) on investments
attributable to:
DAC............................. (13.9) 34.5 (2.5)
Deferred federal income taxes... (3.2) 8.2 (0.6)
------ ------ -----
Change in unrealized gains
(losses) on investments, net.... $ 6.3 $(15.3) $ 1.1
====== ====== =====
F-50
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
The following table sets forth the reclassification adjustments required for
the years ended December 31, 2000, 1999 and 1998 to avoid double-counting in
comprehensive income items that are included as part of net income for a period
that also had been part of other comprehensive income in earlier periods:
2000 1999 1998
---- ------ -----
($ in millions)
Reclassification Adjustments
Unrealized gains (losses) on investments
arising during period..................... $4.8 $(15.4) $ 1.9
Reclassification adjustment for gains
included in net income.................... 1.5 0.1 (0.8)
---- ------ -----
Unrealized gains (losses) on investments,
net of reclassification adjustments....... $6.3 $(15.3) $ 1.1
==== ====== =====
Unrealized gains (losses) on investments arising during the period reported
in the above table for the years ended December 31, 2000, 1999 and 1998 are net
of income tax expense (benefit) of $4.1 million, (8.2) million and $0.1
million, respectively, and $(17.0) million, 34.3 million and $(0.5) million,
respectively, relating to the effect of such unrealized gains (losses) on DAC.
Reclassification adjustments reported in the above table for the years ended
December 31, 2000, 1999 and 1998 are net of income tax expense (benefit) of
$(0.8) million, 0.0 million and $0.5 million, respectively, and $3.2 million,
$0.2 million and $(2.0) million, respectively, relating to the effect of such
amounts on DAC.
7. Investments:
Fixed Maturity Securities Available-for-Sale:
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 2000
and December 31, 1999 are as follows:
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
----------------- ---------- ----------- -----------------
2000 1999 2000 1999 2000 1999 2000 1999
-------- -------- ----- ---- ----- ----- -------- --------
($ in millions)
US Treasury securities and obligations of US Government
agencies.............................................. $ 32.0 $ 26.6 $ 1.4 $0.0 $ 0.1 $ 1.1 $ 33.3 $ 25.5
Collateralized mortgage obligations:
Government agency-backed............................. 58.8 82.4 0.6 0.3 0.1 0.4 59.3 82.3
Non-agency backed.................................... 33.1 34.4 0.8 0.6 0.0 0.3 33.9 34.7
Other asset-backed securities:
Government agency-backed............................. 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.1
Non-agency backed.................................... 93.5 104.6 1.2 0.2 0.4 4.4 94.3 100.4
Utilities.............................................. 74.8 113.2 0.9 0.2 0.9 3.4 74.8 110.0
Corporate bonds........................................ 725.6 704.2 10.0 2.7 18.0 22.0 717.6 684.9
Affiliates............................................. 1.5 11.3 0.0 0.0 0.0 0.4 1.5 10.9
-------- -------- ----- ---- ----- ----- -------- --------
Total........................................... $1,019.3 $1,076.8 $14.9 $4.0 $19.5 $32.0 $1,014.7 $1,048.8
======== ======== ===== ==== ===== ===== ======== ========
The carrying value of the Company's fixed maturity securities at December
31, 2000 and 1999 is net of adjustments for impairments in value deemed to be
other than temporary of $3.1 million and 0.5 million, respectively.
At December 31, 2000 and 1999, there were no fixed maturity securities which
were non-income producing for the twelve months preceding such dates.
F-51
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
The Company classifies fixed maturity securities which, (i) are in default
as to principal or interest payments, (ii) are to be restructured pursuant to
commenced negotiations, (iii) went into bankruptcy subsequent to acquisition or
(iv) are deemed to have other than temporary impairments to value, as "problem
fixed maturity securities." At December 31, 2000 and 1999, the carrying value
of problem fixed maturities held by the Company was $12.5 million and $4.8
million, respectively. The Company defines potential problem securities in the
fixed maturity category as securities of companies that are deemed to be
experiencing significant operating problems or difficult industry conditions.
At December 31, 2000 and 1999, the carrying value of potential problem fixed
maturities held by the Company was $6.2 million and $6.4 million, respective.
In addition, at December 31, 2000 and 1999, the Company held no fixed maturity
securities which have been restructured.
The amortized cost and estimated fair value of fixed maturity securities, by
contractual maturity dates, (excluding scheduled sinking funds) as of December
31, 2000 are as follows:
2000
--------------------
Amortized Estimated
Cost Fair Value
--------- ----------
($ in millions)
Due in one year or less........... $ 46.6 $ 46.8
Due after one year through five
years........................... 263.4 263.2
Due after five years through ten
years........................... 414.0 406.1
Due after ten years............... 79.2 79.0
-------- --------
Subtotal................... 803.2 795.1
Mortgage-backed and other
asset-backed securities......... 216.1 219.6
-------- --------
Total...................... $1,019.3 $1,014.7
======== ========
Fixed maturity securities that are not due at a single maturity date have
been included in the preceding table in the year of final maturity. Actual
maturities may differ from contractual maturities because borrowers may have
the right to call or prepay obligations with or without call or prepayment
penalties.
Proceeds from sales of fixed maturity securities during 2000, 1999 and 1998
were $40.9 million, 80.1 million and $45.1 million, respectively. Gross gains
of $0.5 million, 0.2 million and $0.7 million and gross losses of $2.1 million,
2.0 million and $0.1 million were realized on these sales, respectively.
8. Mortgage Loans On Real Estate and Real Estate
Mortgage loans on real estate at December 31, 2000 and 1999 consist of the
following:
2000 1999
------ ------
($ in millions)
Commercial mortgage loans......... $ 49.7 $ 53.9
Agricultural and other loans...... 67.8 113.4
------ ------
Total loans....................... 117.5 167.3
Less: valuation allowances........ (1.4) (2.3)
------ ------
Mortgage loans, net of valuation
allowances...................... $116.1 $165.0
====== ======
F-52
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
An analysis of the valuation allowances for 2000, 1999 and 1998 is as
follows:
2000 1999 1998
----- ---- -----
($ in millions)
Balance, beginning of year........ $ 2.3 $1.9 $ 2.5
Increase (decrease) in allowance.. (0.3) 0.4 (0.4)
Reduction due to pay downs, pay
offs, and sales................. (0.6) 0.0 0.0
Transfers to real estate.......... 0.0 0.0 (0.2)
----- ---- -----
Balance, end of year.............. $ 1.4 $2.3 $ 1.9
===== ==== =====
Impaired mortgage loans along with related valuation allowances were as
follows:
2000 1999
----- -----
($ in millions)
Investment in impaired mortgage
loans (before valuation
allowances):
Loans that have valuation
allowances........................ $ 9.3 $ 9.6
Loans that do not have valuation
allowances........................ 4.0 4.3
----- -----
Subtotal..................... 13.3 13.9
Valuation allowances................ (0.2) (0.5)
----- -----
Impaired mortgage loans,
net of valuation
allowances................. $13.1 $13.4
===== =====
Impaired mortgage loans that do not have valuation allowances are loans
where the net present value of the expected future cash flows related to the
loan or the fair value of the collateral equals or exceeds the recorded
investment in the loan. Such loans primarily consist of restructured loans or
loans on which impairment writedowns were taken prior to the adoption of SFAS
No. 114, "Accounting by Creditors for Impairment of a Loan".
During 2000 and 1999, the average recorded investment in impaired mortgage
loans was approximately $13.2 million and $14.1 million, respectively. During
2000, 1999 and 1998, the Company recognized $0.7 million, $1.0 million and $1.1
million, respectively, of interest income on impaired loans.
At December 31, 2000 and 1999, there were no mortgage loans which were
non-income producing for the twelve months preceding such dates.
At December 31, 2000 and 1999, the Company had restructured mortgage loans
of $9.1 million and $11.9 million, respectively. Interest income of $0.7
million, 1.0 million and $1.0 million was recognized on restructured mortgage
loans in 2000, 1999 and 1998, respectively. Gross interest income on these
loans that would have been recorded in accordance with the original terms of
such loans amounted to approximately $0.9 million in 2000, and $1.2 million for
both 1999 and 1998.
The carrying value of real estate is $5.4 million and $6.9 million as of
December 31, 2000 and 1999, respectively. Real estate is categorized are either
real estate to be disposed of or real estate held for investment.
The carrying value of real estate to be disposed of as of December 31, 2000
was $2.3 million, net of $0.0 million relating to impairments taken upon
foreclosure of mortgage loans and $1.2 million of accumulated depreciation.
The carrying value of real estate to be disposed of as of December 31, 1999
was $1.6 million, net of $0.5 million relating to impairments taken upon
foreclosure of mortgage loans and $0.2 million of accumulated depreciation.
F-53
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
The carrying value of real estate held for investment as of December 31,
2000 was $3.1 million, net of $0.7 million relating to impairments taken upon
foreclosure of mortgage loans and $1.0 million of accumulated depreciation. The
carrying value of real estate held for investment as of December 31, 1999 was
$5.3 million, net of $0.7 million relating to impairments taken upon
foreclosure of mortgage loans and $1.9 million of accumulated depreciation.
At December 31, 2000 and 1999, there was no real estate which was non-income
producing for the twelve months preceding such dates.
The carrying value of impaired real estate as of December 31, 2000 and 1999
was $3.1 million and $4.4 million, respectively. The depreciated cost of such
real estate as of December 31, 2000 and 1999 was $5.1 million and $5.8 million
before impairment writedowns of $1.0 million and $1.4 million, respectively.
The aforementioned impairments occurred primarily as a result of low occupancy
levels and other market related factors. There were no losses recorded during
2000, 1999 and 1998 related to impaired real estate.
9. Estimated Fair Value of Financial Instruments:
The estimated fair values of the Company's financial instruments approximate
their carrying amounts. The methods and assumptions utilized in estimating the
fair values of the Company's financial instruments are summarized as follows:
Fixed Maturities
The estimated fair values of fixed maturity securities are based upon quoted
market prices, where available. The fair values of fixed maturity securities
not actively traded and other non-publicly traded securities are estimated
using values obtained from independent pricing services or, in the case of
private placements, by discounting expected future cash flows using a current
market interest rate commensurate with the credit quality and term of the
investments.
Mortgage Loans
The fair values of mortgage loans are estimated by discounting expected
future cash flows, using current interest rates for similar loans to borrowers
with similar credit risk. Loans with similar characteristics are aggregated for
purposes of the calculations. The fair value of mortgages in process of
foreclosure is the estimated fair value of the underlying collateral.
Policy Loans
Policy loans are an integral component of insurance contracts and have no
maturity dates. Management has determined that it is not practicable to
estimate the fair value of policy loans.
Long-term Debt
The fair value of long-term debt at December 31, 2000 was $47.9 million and
is determined based on contractual cash flows discounted at markets rates.
Separate Account Assets and Liabilities
The estimated fair value of assets held in Separate Accounts is based on
quoted market prices. The fair value of liabilities related to Separate
Accounts is the amount payable on demand, which includes surrender charges.
F-54
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
Investment-Type Contracts
The fair values of annuities are based on estimates of the value of payments
available upon full surrender. The fair values of the Company's liabilities
under guaranteed investment contracts are estimated by discounting expected
cash outflows using interest rates currently offered for similar contracts with
maturities consistent with those remaining for the contracts being valued.
10. Reinsurance:
Life insurance business is primarily ceded on a yearly renewable term basis
under various reinsurance contracts except for the level term product, which
utilizes a coinsurance agreement. The Company's general practice is to retain
no more than $4.0 million of risk on any one person for individual products and
$6.0 million for last survivor products.
The following table summarizes the effect of reinsurance for the years
indicated:
2000 1999 1998
----- ----- -----
($ in millions)
Direct premiums....................................... $13.2 $ 7.1 $ 2.5
Reinsurance assumed (1)............................... 29.8 4.0 0.0
Reinsurance ceded..................................... (5.7) (1.9) (0.8)
----- ----- -----
Net premiums........................................ $37.3 $ 9.2 $ 1.7
===== ===== =====
Universal life and investment type product policy fee
income ceded........................................ $20.6 $19.7 $17.4
===== ===== =====
Policyholders' benefits ceded......................... $20.7 $18.4 $22.7
===== ===== =====
Policyholders' benefits assumed....................... $ 5.5 $ 0.5 $ 0.0
===== ===== =====
----------
(1)Increase in 2000 is primarily related to business assumed from affiliate.
See note 3.
The Company is contingently liable with respect to ceded insurance should
any reinsurer be unable to meet its obligations under these agreements. To
limit the possibility of such losses, the Company evaluates the financial
condition of its reinsurers and monitors concentration of credit risk.
Effective September 1, 1999, the Company recaptured its reinsurance
agreements with MONY Life for all in force and new business. The Company
simultaneously entered into new reinsurance agreements with third party
reinsurers which reinsured the same block of business as that previously
reinsured by MONY Life. Under the new reinsurance agreements, the Company
increased its retention limits on new business for any one person for
individual products from $0.5 million to $4.0 million and on last survivor
products from $0.5 million to $6.0 million.
11. Off-Balance Sheet Risk and Concentration of Credit Risk:
Financial Instruments with Off-Balance Sheet Risk:
Pursuant to a securities lending agreement with a major financial
institution, the Company from time to time lends securities to approved
borrowers. At December 31, 2000 and 1999, securities loaned by the Company
under this agreement had a carrying value of approximately $48.6 million and
$18.0 million, respectively. The minimum collateral on securities loaned is
102% of the market value of the loaned securities. Such securities are marked
to market on a daily basis and the collateral is correspondingly increased or
decreased.
F-55
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
Concentration of Credit Risk:
At December 31, 2000 and 1999, the Company had no single investment or
series of investments with a single issuer, (excluding US Treasury securities
and obligations of US government agencies) exceeding 2.2% and 1.7% of total
cash and invested assets, respectively.
The Company's fixed maturity securities are diversified by industry type.
The industries that comprise 10% or more of the carrying value of the fixed
maturity securities at December 31, 2000 are Consumer Goods and Services of
$199.4 million (19.7%), Non-Government Asset/Mortgage-Backed of $160.3 million
(15.8%), and Energy of $124.0 million (12.2%).
At December 31, 1999, the industries that comprise 10% or more of the
carrying value are Consumer Goods and Services of $173.0 million (16.5%),
Energy of $137.9 million (13.2%), Non-Government Asset/Mortgage-Backed of
$135.1 million (12.9%), Public Utilities of $110.0 million (10.5%) and
Government and Agencies of $107.9 million (10.3%).
The Company holds below investment grade fixed maturity securities with a
carrying value of $113.3 million at December 31, 2000. These investments
consist mostly of privately issued bonds which are monitored by the Company
through extensive internal analysis of the financial condition of the issuers
and which generally include protective debt covenants. At December 31, 1999,
the carrying value of the Company's investments in below investment grade fixed
maturity securities amounted to $55.0 million.
The Company has investments in commercial and agricultural mortgage loans
and real estate. The locations of property collateralizing mortgage loans and
real estate investment carrying values at December 31, 2000 and 1999 are as
follows ($ in millions):
2000 1999
------------ ------------
Geographic Region
West.............................. $ 35.5 29.2% $ 58.9 34.3%
Southeast......................... 40.9 33.7 45.4 26.4
Mountain.......................... 23.9 19.6 28.4 16.5
Southwest......................... 4.8 3.9 14.3 8.3
Midwest........................... 8.7 7.2 14.2 8.3
Northeast......................... 7.8 6.4 10.7 6.2
------ ----- ------ -----
Total.......................... $121.6 100.0% $171.9 100.0%
====== ===== ====== =====
The states with the largest concentrations of mortgage loans and real estate
investments at December 31, 2000 are: District of Columbia, $27.9 million
(23.0%); California, $17.1 million (14.1%); Washington, $10.7 million (8.8%);
Idaho, $9.6 million (7.9%); New York, $7.8 million (6.4%); Oregon, $7.7 million
(6.3%); Arizona, $6.5 million (5.3%); and Missouri, $6.3 million (5.2%).
As of December 31, 2000 and 1999, the real estate and mortgage loan
portfolio by property type were as follows ($ in millions):
2000 1999
------------ ------------
Property Type
Agricultural...................... $ 67.1 55.3% $112.2 65.3%
Office buildings.................. 42.0 34.5 46.9 27.3
Hotel............................. 5.4 4.4 5.3 3.1
Industrial........................ 2.4 2.0 2.3 1.3
Retail............................ 1.7 1.4 2.0 1.2
Other............................. 1.6 1.3 1.8 1.0
Apartment buildings............... 1.4 1.1 1.4 0.8
------ ----- ------ -----
Total.......................... $121.6 100.0% $171.9 100.0%
====== ===== ====== =====
F-56
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
12. Commitments and Contingencies:
Since late 1995 a number of purported class actions have been commenced in
various state and federal courts against the Company alleging that it engaged
in deceptive sales practices in connection with the sale of whole and universal
life insurance policies from the early 1980s through the mid 1990s. Although
the claims asserted in each case are not identical, they seek substantially the
same relief under essentially the same theories of recovery (e.g., breach of
contract, fraud, negligent misrepresentation, negligent supervision and
training, breach of fiduciary duty, unjust enrichment and violation of state
insurance and/or deceptive business practice laws). Plaintiffs in these cases
seek primarily equitable relief (e.g., reformation, specific performance,
mandatory injunctive relief prohibiting MONY from canceling policies for
failure to make required premium payments, imposition of a constructive trust
and creation of a claims resolution facility to adjudicate any individual
issues remaining after resolution of all class-wide issues) as opposed to
compensatory damages, although they also seek compensatory damages in
unspecified amounts and, if they were to succeed at trial, the equitable
remedies they seek could result in significant expense to the Company. The
Company has denied any wrongdoing and has asserted numerous affirmative
defenses.
On June 7, 1996, the New York State Supreme Court certified one of those
cases, Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America (now known as DeFilippo, et al v. The Mutual Life
Insurance Company of New York and MONY Life Insurance Company), the first of
the class actions filed, as a nationwide class consisting of all persons or
entities who have, or at the time of the policy's termination had, an ownership
interest in a whole or universal life insurance policy issued by the Company
that was allegedly sold on a "vanishing premium" basis during the period
January 1, 1982 to December 31, 1995. On March 27, 1997, the Company filed a
motion to dismiss or, alternatively, for summary judgment on all counts of the
complaint. All of the other putative class actions have been consolidated and
transferred by the Judicial Panel on Multidistrict Litigation to the United
States District Court for the District of Massachusetts and/or are being held
in abeyance pending the outcome of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted the Company's
motion for summary judgement and dismissed all claims filed in the Goshen case
against the Company. On December 20, 1999, the New York State Court of Appeals
affirmed the dismissal of all but one of the claims in the Goshen case (a claim
under New York's General Business Law), which has been remanded back to the New
York State Supreme Court for further proceedings consistent with the opinion.
The New York State Supreme Court has subsequently reaffirmed that, for purposes
of the remaining New York General Business Law claim, the class is now limited
to New York purchasers only, and has further held that the New York General
Business Law claims of all class members whose claims accrued prior to November
29, 1992 are barred by the applicable statute of limitations. The Company
intends vigorously to defend that litigation. There can be no assurance that
the present or future litigation relating to sales practices will not have a
material adverse effect on the Company.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings (some of which involved demands for
unspecified damages) in connection with its business. In the opinion of
management, any additional liabilities for resolution of contingent
liabilities, income taxes and other matters beyond that recorded in the
financial statements as of December 31, 2000 will not have a material adverse
effect on the Company's financial position or results of operations.
Insurance companies are subject to assessments up to statutory limits, by
state guaranty funds for losses of policyholders of insolvent insurance
companies. In the opinion of management, such assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
At December 31, 2000, the Company had commitments to issue $4.8 million of
fixed rate agricultural loans with periodic interest rate reset dates. The
initial interest rates on such loans range from approximately 7.535% to 8.20%.
There were no outstanding commitments for private fixed maturity securities or
commercial mortgages as of December 31, 2000.
F-57
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
13. Statutory Financial Information and Regulatory Risk-Based Capital:
Statutory net income (loss) reported by the Company for the years ended
December 31, 2000, 1999 and 1998 was $(35.9) million, $(18.2) million and $11.1
million, respectively. The combined statutory surplus of the Company as of
December 31, 2000 and 1999 was $152.6 million and $140.2 million, respectively.
In March 2000, the National Association of Insurance Commissioners ("NAIC")
adopted Codification. Codification represents a new statutory accounting
framework that has resulted in substantive changes to the 2001 NAIC Accounting
Practices and Procedures Manual. This new framework must be applied in
preparing statutory basis financial statements for all periods subsequent to
December 31, 2000. In addition, the use of permitted practices is still
allowed, however, any accounting differences from codified accounting
principles must be disclosed and quantified in the footnotes to audited
statutory financial statements and in the Annual Reports filed by insurance
companies with the various state insurance departments.
In April 2000, MONY Life's state of domicile, Arizona, adopted codification
in its entirety.
Management has determined that the effect of applying codified accounting
principles will not be material to the statutory net income and surplus of
MLOA.
Each insurance company's state of domicile imposes minimum risk-based
capital requirements. The formulas for determining the amount of risk-based
capital specify various weighting factors that are applied to financial
balances or various levels of activity based on the perceived degree of risk.
Regulatory compliance is determined by a ratio of the Company's regulatory
total adjusted capital, as defined by the NAIC, to its authorized control level
risk-based capital, as defined by the NAIC. Companies below specific trigger
points or ratios are classified within certain levels, each of which requires
specified corrective action. The Company exceeded the minimum risk-based
capital requirements.
As part of their routine regulatory oversight, the Arizona State Insurance
Department is currently conducting its examination of the Company for each of
the three years in the period ended December 31, 1999.
F-58
Appendix A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
Applicable
Attained Age of Younger Insured Percentage
------------------------------- ----------
40 and Under.......... 250%
41.................... 243
42.................... 236
43.................... 229
44.................... 222
45.................... 215
46.................... 209
47.................... 203
48.................... 197
49.................... 191
50.................... 185
51.................... 178
52.................... 171
53.................... 164
54.................... 157
55.................... 150
56.................... 146
57.................... 142
58.................... 138
59.................... 134
60.................... 130
61.................... 128
62.................... 126
63.................... 124
64.................... 122
65.................... 120
66.................... 119
67.................... 118
68.................... 117
69.................... 116
70.................... 115
71.................... 113
72.................... 111
73.................... 109
74.................... 107
75-90................. 105
91.................... 104
92.................... 103
93.................... 102
94-100................ 101
A-1
Appendix B
MONTHLY PER $1,000 SPECIFIED AMOUNT FACTORS
Preferred NonSmoker Preferred Smoker
----------------------------- -----------------------------
Specified Amount Specified Amount
Issue Age ----------------------------- -----------------------------
of Younger 100,000-- 500,000-- 1 million 100,000-- 500,000-- 1 million
Insured 499,999 999,999 and over 499,999 999,999 and over
---------- --------- --------- --------- --------- --------- ---------
18 0.050 0.050 0.040 0.060 0.050 0.040
-----------------------------------------------------------------------
20 0.050 0.050 0.040 0.060 0.050 0.040
25 0.060 0.050 0.040 0.060 0.050 0.050
-----------------------------------------------------------------------
30 0.060 0.050 0.050 0.070 0.060 0.050
35 0.070 0.060 0.050 0.070 0.060 0.060
-----------------------------------------------------------------------
40 0.060 0.070 0.060 0.060 0.070 0.060
45 0.090 0.080 0.070 0.090 0.090 0.080
-----------------------------------------------------------------------
50 0.110 0.100 0.090 0.120 0.110 0.100
55 0.140 0.130 0.110 0.140 0.130 0.120
-----------------------------------------------------------------------
60 0.170 0.160 0.140 0.180 0.170 0.150
65 0.220 0.210 0.180 0.230 0.220 0.190
-----------------------------------------------------------------------
70 0.270 0.270 0.240 0.270 0.270 0.250
75 0.310 0.300 0.280 0.310 0.300 0.280
-----------------------------------------------------------------------
80 0.360 0.350 0.340 0.360 0.350 0.340
85 0.360 0.350 0.340 0.360 0.350 0.340
Standard NonSmoker Standard Smoker
----------------------------- -----------------------------
Specified Amount Specified Amount
Issue Age ----------------------------- -----------------------------
of Younger 100,000-- 500,000-- 1 million 100,000-- 500,000-- 1 million
Insured 499,999 999,999 and over 499,999 999,999 and over
---------- --------- --------- --------- --------- --------- ---------
18 0.060 0.050 0.040 0.060 0.050 0.040
-----------------------------------------------------------------------
20 0.060 0.050 0.040 0.060 0.050 0.040
25 0.060 0.060 0.050 0.060 0.050 0.050
-----------------------------------------------------------------------
30 0.070 0.060 0.050 0.070 0.060 0.050
35 0.070 0.060 0.060 0.070 0.060 0.060
-----------------------------------------------------------------------
40 0.080 0.070 0.060 0.080 0.070 0.060
45 0.090 0.090 0.080 0.090 0.080 0.080
-----------------------------------------------------------------------
50 0.120 0.110 0.100 0.120 0.110 0.100
55 0.140 0.140 0.120 0.150 0.140 0.130
-----------------------------------------------------------------------
60 0.180 0.170 0.150 0.190 0.180 0.160
65 0.230 0.220 0.190 0.250 0.240 0.210
-----------------------------------------------------------------------
70 0.270 0.270 0.250 0.300 0.290 0.260
75 0.310 0.300 0.280 0.310 0.310 0.300
-----------------------------------------------------------------------
80 0.360 0.350 0.340 0.370 0.360 0.350
85 0.360 0.350 0.340 0.370 0.360 0.350
Factors for interim ages are available upon request.
B-1
Appendix C
GUARANTEED DEATH BENEFIT RIDER
Monthly Guarantee Premium for Guaranteed Death
Benefit Rider with Ten Year/Age 70 Guarantee Period
Monthly Guarantee
Premium
-----------------
Specified Amount = $200,000
---------------------------
Male age 45 Preferred Nonsmoker, Female age 45 Preferred Nonsmoker,
Death Benefit Option 1........................................... $101.64
Male age 45 Preferred Nonsmoker, Female age 45 Preferred Nonsmoker,
Death Benefit Option 2........................................... $101.64
C-1
Appendix D
ILLUSTRATIONS OF DEATH PROCEEDS, FUND VALUES AND
CASH VALUES, AND PREMIUM OUTLAYS
The following tables illustrate how the key financial elements of the Policy
work, specifically, how the death benefits, Fund Values and Cash Values could
vary over an extended period of time. In addition, each table compares these
values with premiums paid accumulated with interest.
The Policies illustrated include the following:
Death
Benefit Specified See
Sex Age Underwriting Class Sex Age Underwriting Class Option Amount Page
--- --- ------------------ --- --- ------------------ ------ ------ ----
Male 45 Preferred Non-smoker Female 45 Preferred Non-smoker 1 $200,000 D- 4
Male 45 Preferred Non-smoker Female 45 Preferred Non-smoker 2 $200,000 D-27
The tables show how Death Proceeds, Fund Values and Cash Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Cash Values will be different if the returns averaged 0%, 6% or 12% over a
period of years but went above or below those figures in individual Policy
years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The amounts shown for Death Proceeds, Fund Values and Cash Values reflect
the fact the net investment return on the Policy is lower than the gross
investment return on the Subaccounts of the Variable Account. This results from
the charges levied against the Subaccounts of the Variable Account (i.e., the
mortality and expense risk charge) as well as the premium loads, administrative
charges and Surrender Charges. The difference between the Fund Value and the
Cash Value in the first 14 years is the Surrender Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance) and at the maximum rates
guaranteed in the Policies. The amounts shown at the end of each Policy year
reflect a daily charge against the Funds as well as those assessed against the
Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .35% annually on a
guaranteed basis.
The tables also reflect a deduction for a daily investment advisory fee and
for other expenses of the Portfolio at a rate equivalent to an annual rate of
0.93% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum investment advisory
fee and other expenses of the Portfolios applicable to the Subaccounts of the
Variable Account. Actual fees and other expenses vary by Portfolio and may be
subject to agreements by the sponsor to waive or otherwise reimburse each
Portfolio for operating expenses which exceed certain limits. For a detailed
description of actual expenses and expense reimbursements, see pages 4-5. There
can be no assurance that the expense reimbursement arrangements will continue
in the future, and any unreimbursed expenses would be reflected in the values
included on the tables.
The effect of these investment management and direct expenses on a 0% gross
rate of return would result in a net rate of return of -0.93%, on 6% it would
be 5.25%, and on 12% it would be 11.25%.
The tables assume the deduction of charges including administrative and
sales charges. There are tables for the Policies listed in the chart above for
death benefit Options 1 or 2 and each option is illustrated using current
D-1
and guaranteed policy cost factors. The tables reflect the fact that the
Company does not currently make any charge against the Variable Account for
state or federal taxes. If such a charge is made in the future, it will take a
higher rate of return to produce after-tax returns of 0%, 6% or 12%.
The following are descriptions of Table columns and key terms:
Age: Younger Insured's attained age at the end of the policy year
Premium Outlay: The annualized out-of-pocket premium payments for each
policy year including scheduled and any anticipated unscheduled premium
payments. Premium payments are assumed to be paid at the beginning of each
premium paying period. Amounts of surrenders and loans plus loan interest if
any, are shown on the pages captioned "Premiums, Full Surrender and Policy
Loans".
Premium Accumulated at 5%: is equal to the premiums compounded at an annual
effective rate of 5% and is shown at the end of the year.
Guaranteed Charges at 0.00%, 6.00% or 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds,
less all charges, fees and deductions at their guaranteed maximum. The cash
value also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first ten years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds,
less all charges, fees and deductions at their guaranteed maximum. The Fund
Value DOES NOT take into account the applicable surrender charges that would
apply if the policy were surrendered prior to the end of the first ten years.
Death Proceeds: The benefit payable if the insured's death occurs at the end
of the policy year, assuming a 0.00%, 6.00% or 12,00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at their guaranteed
maximums.
Current charges at 0.00%, 6.00% or 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds,
less all charges, fees and deductions at the current, non-guaranteed rates. The
cash value also takes into account any loans illustrated, as well as, the
applicable surrender charges that would apply if the policy were surrendered
prior to the end of the first ten years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds,
less all charges, fees and deductions at the current, non-guaranteed rates. The
Fund Value DOES NOT take into account the applicable surrender charges that
would apply if the policy were surrendered prior to the end of the first ten
years.
Death Proceeds: The benefit payable if the insured's death occurs at the end
of the policy year assuming a 0.00%, 6.00% or 12.00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at the current,
non-guaranteed rates.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current
cost factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 100 numeric summary and standard ledger statements
which follow and which begin on pages B-4.
D-2
STANDARD LEDGER STATEMENT -- SUPPLEMENTAL FOOTNOTE PAGE
MONY Custom Estate Master
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
MONY Life Insurance Company of America
Additional Information
These policies have been tested for the possibility of classification as a
modified endowment. This test is not a guarantee that a policy will not be
classified as a modified endowment.
This illustration has been checked against federal tax laws relating to
their definition of life insurance and is in compliance based on proposed
premium payments and coverages. Any decrease in specified amount and/or a
change in death benefit option 2 to death benefit option 1 and/or surrenders
occurring in the first 15 years may cause a taxable event. In addition, if the
policy is defined as a modified endowment policy, a loan, surrender, or
assignment or pledge (unless such assignment or pledge is for burial expenses
and the maximum death benefit is not in excess of $25,000) may be considered a
taxable distribution and a ten percent penalty may be added to any tax on the
distribution. Please consult your tax advisor for advice.
GUIDELINE PREMIUMS
Death Benefit Specified Initial Guideline Initial Guideline
Sex Age Underwriting Class Sex Age Options Amount Single Premium Annual Premium
--- --- ------------------ --- --- ------- ------ -------------- --------------
Male 45 Preferred, Non-Smoker Female 45 1 $200,000 $28,063.60 $2,390.78
Male 45 Preferred, Non-Smoker Female 45 2 $200,000 $28,063.60 $9,335.65
Values shown on these illustrations are based on a Specified Amount of
$200,000 and on a policyowner tax bracket of 0%.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the policy year and reflect
the effect of all loans and surrenders. The death proceeds, fund value and
value upon surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's cash value is net of any applicable surrender charge.
Premiums less the following deductions are added to the fund value:
1. A premium tax charge of 2.25% of gross premiums in all policy years.
2. A sales charge on the gross premiums. The sales charges equal 6% of each
premium dollar paid up to the Target Premium, in years 1-10, 2% of
premium paid in excess of Target Premium in years 1-10, and 2% of all
premiums after the tenth Policy year.
3. A DAC tax charge of 1.25% of gross premiums in all policy years.
Those columns assuming guaranteed charges use the current monthly mortality
charges, current monthly administrative charges, current charges for mortality
and expense risks, current charges for rider benefits, if any, and current
premium sales charge ("current charges" for the first year) as well as the
assumed hypothetical gross annual investment return indicated. Thereafter these
columns use guaranteed monthly mortality charges, guaranteed monthly
administrative charges, guaranteed charges for mortality and expense risks,
guaranteed charges for rider benefits if any, guaranteed maximum premium sales
charge, and the assumed hypothetical gross annual investment return indicated.
Those columns assuming current charges are based upon "current charges" and the
assumed hypothetical gross annual investment return indicated.
The current charges declared by MONY Life Insurance Company of America are
guaranteed for the first policy year and apply to policies issued as of the
illustration preparation date and could change between the preparation date and
the date the policy is issued. After the first policy year, current charges are
not guaranteed, and may be changed at the discretion of MONY Life Insurance
Company of America.
D-3
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Numeric Summary The following table shows how differences in investment returns and policy charges
would affect policy cash value and death benefit.
Guaranteed Charges* Guaranteed Charges** Current Charges***
---------------------- ---------------------- ----------------------
0.00% (-0.93% Net) 0.00% (-0.93% Net) 0.00% (-0.93% Net)
Policy Premium Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 0 716 200,000 0 716 200,000 0 716 200,000
5 1,141 2,738 3,422 200,000 2,738 3,422 200,000 2,789 3,474 200,000
10 1,141 6,250 6,364 200,000 6,250 6,364 200,000 6,534 6,648 200,000
20 1,141 11,348 11,348 200,000 11,348 11,348 200,000 13,559 13,559 200,000
@ Age 70 1,141 9,005 9,005 200,000 9,005 9,005 200,000 14,967 14,967 200,000
@ Age 85 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
* Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
***Policy lapses in policy year 37 based on current charges and a gross
investment return of 0.00%.
Applicant's or We have received a copy of this illustration and understand that any not-
Policyowner's guaranteed elements are subject to change and could be either higher or lower.
Acknowledgement The agent has told us that they are not guaranteed.
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
Representative's I certify that this illustration has been presented to the applicant and that I have
Acknowledgement explained that any not-guaranteed elements illustrated are subject to change. I
have made no statements that are inconsistent with the illustration.
---------------------------------------------------------------- ------------------
Signature of Representative Date
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-4
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 0.00% (-0.93% Net) 0.00% (-0.93% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 1,198 0 716 200,000 0 716 200,000 0 716 200,000
2 1,141 2,457 388 1,415 200,000 388 1,415 200,000 394 1,421 200,000
3 1,141 3,778 1,187 2,100 200,000 1,187 2,100 200,000 1,203 2,116 200,000
4 1,141 5,165 1,971 2,770 200,000 1,971 2,770 200,000 2,001 2,800 200,000
5 1,141 6,621 2,738 3,422 200,000 2,738 3,422 200,000 2,789 3,474 200,000
6 1,141 8,151 3,486 4,056 200,000 3,486 4,056 200,000 3,564 4,135 200,000
7 1,141 9,757 4,214 4,670 200,000 4,214 4,670 200,000 4,328 4,784 200,000
8 1,141 11,443 4,919 5,262 200,000 4,919 5,262 200,000 5,078 5,420 200,000
9 1,141 13,213 5,599 5,827 200,000 5,599 5,827 200,000 5,814 6,042 200,000
10 1,141 15,072 6,250 6,364 200,000 6,250 6,364 200,000 6,534 6,648 200,000
11 1,141 17,024 7,127 7,127 200,000 7,127 7,127 200,000 7,494 7,494 200,000
12 1,141 19,074 7,851 7,851 200,000 7,851 7,851 200,000 8,315 8,315 200,000
13 1,141 21,226 8,530 8,530 200,000 8,530 8,530 200,000 9,106 9,106 200,000
14 1,141 23,485 9,160 9,160 200,000 9,160 9,160 200,000 9,866 9,866 200,000
15 1,141 25,858 9,734 9,734 200,000 9,734 9,734 200,000 10,590 10,590 200,000
16 1,141 28,349 10,243 10,243 200,000 10,243 10,243 200,000 11,276 11,276 200,000
17 1,141 30,965 10,676 10,676 200,000 10,676 10,676 200,000 11,920 11,920 200,000
18 1,141 33,712 11,018 11,018 200,000 11,018 11,018 200,000 12,517 12,517 200,000
19 1,141 36,596 11,249 11,249 200,000 11,249 11,249 200,000 13,065 13,065 200,000
20 1,141 39,624 11,348 11,348 200,000 11,348 11,348 200,000 13,559 13,559 200,000
21 1,141 42,803 11,292 11,292 200,000 11,292 11,292 200,000 13,996 13,996 200,000
22 1,141 46,142 11,059 11,059 200,000 11,059 11,059 200,000 14,364 14,364 200,000
23 1,141 49,647 10,621 10,621 200,000 10,621 10,621 200,000 14,648 14,648 200,000
24 1,141 53,328 9,950 9,950 200,000 9,950 9,950 200,000 14,850 14,850 200,000
25 1,141 57,192 9,005 9,005 200,000 9,005 9,005 200,000 14,967 14,967 200,000
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 0.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-5
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 0.00% (-0.93% Net) 0.00% (-0.93% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 1,141 61,250 7,729 7,729 200,000 7,729 7,729 200,000 14,977 14,977 200,000
27 1,141 65,511 6,047 6,047 200,000 6,047 6,047 200,000 14,867 14,867 200,000
28 1,141 69,985 3,856 3,856 200,000 3,856 3,856 200,000 14,612 14,612 200,000
29 1,141 74,683 1,033 1,033 200,000 1,033 1,033 200,000 14,158 14,158 200,000
30 1,141 79,615 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 13,460 13,460 200,000
31 1,141 84,794 12,492 12,492 200,000
32 1,141 90,232 11,202 11,202 200,000
33 1,141 95,942 9,526 9,526 200,000
34 1,141 101,938 7,449 7,449 200,000
35 1,141 108,233 5,178 5,178 200,000
36 1,141 114,843 2,735 2,735 200,000
37 0 120,585 LAPSED LAPSED LAPSED
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 0.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-6
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Numeric Summary The following table shows how differences in investment returns and policy charges
would affect policy cash value and death benefit.
Guaranteed Charges* Guaranteed Charges** Current Charges***
---------------------- ---------------------- ----------------------
0.00% (-0.93% Net) 6.00% (5.07% Net) 6.00% (5.07% Net)
Policy Premium Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 0 716 200,000 0 767 200,000 0 767 200,000
5 1,141 2,738 3,422 200,000 3,459 4,144 200,000 3,516 4,200 200,000
10 1,141 6,250 6,364 200,000 8,943 9,057 200,000 9,278 9,392 200,000
20 1,141 11,348 11,348 200,000 23,079 23,079 200,000 25,965 25,965 200,000
@ Age 70 1,141 9,005 9,005 200,000 28,053 28,053 200,000 35,766 35,766 200,000
@ Age 85 1,141 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 51,870 51,870 200,000
@ Age 90 1,141 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 28,037 28,037 200,000
* Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 6.00%.
***Policy lapses in policy year 48 based on current charges and a gross
investment return of 6.00%.
Applicant's or We have received a copy of this illustration and understand that any not-guaranteed
Policyowner's elements are subject to change and could be either higher or lower. The agent has
Acknowledgement told us that they are not guaranteed.
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
Representative's I certify that this illustration has been presented to the applicant and that I have
Acknowledgement explained that any not-guaranteed elements illustrated are subject to change. I have
made no statements that are inconsistent with the illustration.
---------------------------------------------------------------- ------------------
Signature of Representative Date
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-7
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 6.00% (5.07% Net) 6.00% (5.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 1,198 0 716 200,000 0 767 200,000 0 767 200,000
2 1,141 2,457 388 1,415 200,000 537 1,564 200,000 543 1,570 200,000
3 1,141 3,778 1,187 2,100 200,000 1,479 2,392 200,000 1,496 2,409 200,000
4 1,141 5,165 1,971 2,770 200,000 2,453 3,252 200,000 2,486 3,285 200,000
5 1,141 6,621 2,738 3,422 200,000 3,459 4,144 200,000 3,516 4,200 200,000
6 1,141 8,151 3,486 4,056 200,000 4,497 5,068 200,000 4,585 5,155 200,000
7 1,141 9,757 4,214 4,670 200,000 5,566 6,022 200,000 5,695 6,151 200,000
8 1,141 11,443 4,919 5,262 200,000 6,664 7,007 200,000 6,847 7,189 200,000
9 1,141 13,213 5,599 5,827 200,000 7,791 8,019 200,000 8,041 8,270 200,000
10 1,141 15,072 6,250 6,364 200,000 8,943 9,057 200,000 9,278 9,392 200,000
11 1,141 17,024 7,127 7,127 200,000 10,387 10,387 200,000 10,826 10,826 200,000
12 1,141 19,074 7,851 7,851 200,000 11,749 11,749 200,000 12,313 12,313 200,000
13 1,141 21,226 8,530 8,530 200,000 13,141 13,141 200,000 13,850 13,850 200,000
14 1,141 23,485 9,160 9,160 200,000 14,558 14,558 200,000 15,438 15,438 200,000
15 1,141 25,858 9,734 9,734 200,000 15,995 15,995 200,000 17,076 17,076 200,000
16 1,141 28,349 10,243 10,243 200,000 17,444 17,444 200,000 18,763 18,763 200,000
17 1,141 30,965 10,676 10,676 200,000 18,894 18,894 200,000 20,496 20,496 200,000
18 1,141 33,712 11,018 11,018 200,000 20,330 20,330 200,000 22,276 22,276 200,000
19 1,141 36,596 11,249 11,249 200,000 21,732 21,732 200,000 24,099 24,099 200,000
20 1,141 39,624 11,348 11,348 200,000 23,079 23,079 200,000 25,965 25,965 200,000
21 1,141 42,803 11,292 11,292 200,000 24,347 24,347 200,000 27,873 27,873 200,000
22 1,141 46,142 11,059 11,059 200,000 25,509 25,509 200,000 29,813 29,813 200,000
23 1,141 49,647 10,621 10,621 200,000 26,539 26,539 200,000 31,774 31,774 200,000
24 1,141 53,328 9,950 9,950 200,000 27,402 27,402 200,000 33,758 33,758 200,000
25 1,141 57,192 9,005 9,005 200,000 28,053 28,053 200,000 35,766 35,766 200,000
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 6.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-8
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 6.00% (5.07% Net) 6.00% (5.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 1,141 61,250 7,729 7,729 200,000 28,434 28,434 200,000 37,781 37,781 200,000
27 1,141 65,511 6,047 6,047 200,000 28,462 28,462 200,000 39,791 39,791 200,000
28 1,141 69,985 3,856 3,856 200,000 28,032 28,032 200,000 41,776 41,776 200,000
29 1,141 74,683 1,033 1,033 200,000 27,010 27,010 200,000 43,691 43,691 200,000
30 1,141 79,615 LAPSED LAPSED LAPSED 25,242 25,242 200,000 45,497 45,497 200,000
31 1,141 84,794 22,549 22,549 200,000 47,172 47,172 200,000
32 1,141 90,232 18,723 18,723 200,000 48,672 48,672 200,000
33 1,141 95,942 13,512 13,512 200,000 49,942 49,942 200,000
34 1,141 101,938 6,600 6,600 200,000 50,968 50,968 200,000
35 1,141 108,233 LAPSED LAPSED LAPSED 51,910 51,910 200,000
36 1,141 114,843 52,785 52,785 200,000
37 1,141 121,783 53,323 53,323 200,000
38 1,141 129,071 53,457 53,457 200,000
39 1,141 136,723 53,027 53,027 200,000
40 1,141 144,757 51,870 51,870 200,000
41 1,141 153,193 49,873 49,873 200,000
42 1,141 162,051 46,812 46,812 200,000
43 1,141 171,352 42,424 42,424 200,000
44 1,141 181,118 36,313 36,313 200,000
45 1,141 191,372 28,037 28,037 200,000
46 1,141 202,139 17,014 17,014 200,000
47 1,141 213,445 2,472 2,472 200,000
48 0 224,117 LAPSED LAPSED LAPSED
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 6.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-9
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Numeric Summary The following table shows how differences in investment returns and policy charges
would affect policy cash value and death benefit.
Guaranteed Charges* Guaranteed Charges** Current Charges***
---------------------- ------------------------ ------------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
Policy Premium Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 0 716 200,000 0 819 200,000 0 819 200,000
5 1,141 2,738 3,422 200,000 4,309 4,994 200,000 4,370 5,055 200,000
10 1,141 6,250 6,364 200,000 12,836 12,950 200,000 13,234 13,348 200,000
20 1,141 11,348 11,348 200,000 49,022 49,022 200,000 52,889 52,889 200,000
@ Age 70 1,141 9,005 9,005 200,000 82,335 82,335 200,000 92,394 92,394 200,000
@ Age 85 1,141 LAPSED LAPSED LAPSED 368,843 368,843 387,286 447,816 447,816 470,207
@ Age 90 1,141 LAPSED LAPSED LAPSED 596,908 596,908 626,754 742,155 742,155 779,263
* Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
***Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
Applicant's or We have received a copy of this
Policyowner's illustration and understand that any
Acknowledgement not-guaranteedelements are subject to
change and could be either higher or
lower. The agent hastold us that they
are not guaranteed.
-------------------------------------------------------------------------------------
Signature of Applicant or ---------
Policyowner Date
-------------------------------------------------------------------------------------
Signature of Applicant or ---------
Policyowner Date
Representative's I certify that this illustration has
Acknowledgement been presented to the applicant and that
I haveexplained that any not-guaranteed
elements illustrated are subject to
change. I havemade no statements that
are inconsistent with the illustration.
------------------------------------------------------------------------------------- ---------
Signature of Representative Date
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form #B1-98
D-10
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 1,198 0 716 200,000 0 819 200,000 0 819 200,000
2 1,141 2,457 388 1,415 200,000 692 1,719 200,000 698 1,726 200,000
3 1,141 3,778 1,187 2,100 200,000 1,796 2,709 200,000 1,814 2,727 200,000
4 1,141 5,165 1,971 2,770 200,000 2,999 3,798 200,000 3,034 3,833 200,000
5 1,141 6,621 2,738 3,422 200,000 4,309 4,994 200,000 4,370 5,055 200,000
6 1,141 8,151 3,486 4,056 200,000 5,736 6,307 200,000 5,834 6,404 200,000
7 1,141 9,757 4,214 4,670 200,000 7,291 7,748 200,000 7,437 7,894 200,000
8 1,141 11,443 4,919 5,262 200,000 8,985 9,327 200,000 9,195 9,537 200,000
9 1,141 13,213 5,599 5,827 200,000 10,829 11,057 200,000 11,122 11,350 200,000
10 1,141 15,072 6,250 6,364 200,000 12,836 12,950 200,000 13,234 13,348 200,000
11 1,141 17,024 7,127 7,127 200,000 15,298 15,298 200,000 15,827 15,827 200,000
12 1,141 19,074 7,851 7,851 200,000 17,867 17,867 200,000 18,557 18,557 200,000
13 1,141 21,226 8,530 8,530 200,000 20,678 20,678 200,000 21,559 21,559 200,000
14 1,141 23,485 9,160 9,160 200,000 23,751 23,751 200,000 24,862 24,862 200,000
15 1,141 25,858 9,734 9,734 200,000 27,109 27,109 200,000 28,495 28,495 200,000
16 1,141 28,349 10,243 10,243 200,000 30,776 30,776 200,000 32,490 32,490 200,000
17 1,141 30,965 10,676 10,676 200,000 34,776 34,776 200,000 36,884 36,884 200,000
18 1,141 33,712 11,018 11,018 200,000 39,133 39,133 200,000 41,717 41,717 200,000
19 1,141 36,596 11,249 11,249 200,000 43,872 43,872 200,000 47,035 47,035 200,000
20 1,141 39,624 11,348 11,348 200,000 49,022 49,022 200,000 52,889 52,889 200,000
21 1,141 42,803 11,292 11,292 200,000 54,616 54,616 200,000 59,336 59,336 200,000
22 1,141 46,142 11,059 11,059 200,000 60,694 60,694 200,000 66,436 66,436 200,000
23 1,141 49,647 10,621 10,621 200,000 67,303 67,303 200,000 74,254 74,254 200,000
24 1,141 53,328 9,950 9,950 200,000 74,497 74,497 200,000 82,875 82,875 200,000
25 1,141 57,192 9,005 9,005 200,000 82,335 82,335 200,000 92,394 92,394 200,000
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 12.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode: Annual . Riders: None Form #
B1-98
D-11
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
----------------------------------------------- -----------------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 1,141 61,250 7,729 7,729 200,000 90,883 90,883 200,000 102,906 102,906 200,000
27 1,141 65,511 6,047 6,047 200,000 100,217 100,217 200,000 114,528 114,528 200,000
28 1,141 69,985 3,856 3,856 200,000 110,426 110,426 200,000 127,388 127,388 200,000
29 1,141 74,683 1,033 1,033 200,000 121,626 121,626 200,000 141,627 141,627 200,000
30 1,141 79,615 LAPSED LAPSED LAPSED 133,972 133,972 200,000 157,424 157,424 200,000
31 1,141 84,794 147,679 147,679 200,000 174,999 174,999 200,000
32 1,141 90,232 163,033 163,033 200,000 194,607 194,607 204,337
33 1,141 95,942 180,418 180,418 200,000 216,359 216,359 227,177
34 1,141 101,938 200,244 200,244 210,256 240,397 240,397 252,417
35 1,141 108,233 222,202 222,202 233,312 266,971 266,971 280,320
36 1,141 114,843 246,353 246,353 258,671 296,351 296,351 311,168
37 1,141 121,783 272,889 272,889 286,534 328,802 328,802 345,243
38 1,141 129,071 302,010 302,010 317,110 364,638 364,638 382,870
39 1,141 136,723 333,922 333,922 350,618 404,189 404,189 424,398
40 1,141 144,757 368,843 368,843 387,286 447,816 447,816 470,207
41 1,141 153,193 407,003 407,003 427,353 495,922 495,922 520,719
42 1,141 162,051 448,638 448,638 471,070 548,934 548,934 576,381
43 1,141 171,352 493,998 493,998 518,698 607,313 607,313 637,678
44 1,141 181,118 543,336 543,336 570,503 671,544 671,544 705,121
45 1,141 191,372 596,908 596,908 626,754 742,155 742,155 779,263
46 1,141 202,139 654,965 654,965 687,713 819,714 819,714 860,699
47 1,141 213,445 719,515 719,515 748,296 905,586 905,586 941,809
48 1,141 225,315 791,697 791,697 815,448 1,000,881 1,000,881 1,030,907
49 1,141 237,779 872,938 872,938 890,397 1,106,972 1,106,972 1,129,112
50 1,141 250,867 965,116 965,116 974,767 1,225,413 1,225,413 1,237,667
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 12.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-12
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
-------------------------------------------------- -----------------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 1,141 264,608 1,066,449 1,066,449 1,077,113 1,356,300 1,356,300 1,369,863
52 1,141 279,037 1,177,409 1,177,409 1,189,183 1,500,890 1,500,890 1,515,899
53 1,141 294,187 1,297,783 1,297,783 1,310,760 1,660,638 1,660,638 1,677,244
54 1,141 310,095 1,428,477 1,428,477 1,442,762 1,837,110 1,837,110 1,855,481
55 1,141 326,798 1,572,224 1,572,224 1,587,946 2,032,037 2,032,037 2,052,358
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 12.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 1 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-13
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
Last Survivor Flexible Premium Variable Life to Maturity Policy
Numeric Summary The following table shows how differences in investment returns and policy charges
would affect policy cash value and death benefit.
Guaranteed Charges* Guaranteed Charges** Current Charges***
---------------------- ---------------------- ----------------------
0.00% (-0.93% Net) 0.00% (-0.93% Net) 0.00% (-0.93% Net)
Policy Premium Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 0 716 200,716 0 716 200,716 0 716 200,716
5 1,141 2,737 3,421 203,421 2,737 3,421 203,421 2,789 3,473 203,473
10 1,141 6,239 6,353 206,353 6,239 6,353 206,353 6,530 6,645 206,645
20 1,141 11,141 11,141 211,141 11,141 11,141 211,141 13,460 13,460 213,460
@Age 70 1,141 8,437 8,437 208,437 8,437 8,437 208,437 14,669 14,669 214,669
@Age 85 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
* Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
***Policy lapses in policy year 37 based on current charges and a gross
investment return of 0.00%.
Applicant's or We have received a copy of this illustration and understand that any not-guaranteed
Policyowner's elements are subject to change and could be either higher or lower. The agent has
Acknowledgement told us that they are not guaranteed.
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
Representative's I certify that this illustration has been presented to the applicant and that I have
Acknowledgement explained that any not-guaranteed elements illustrated are subject to change. I have
made no statements that are inconsistent with the illustration.
---------------------------------------------------------------- ------------------
Signature of Representative Date
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode: Annual . Riders: None Form #
B1-98
D-14
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
Last Survivor Flexible Premium Variable Life to Maturity Policy
Standard Ledger Statement
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 0.00% (-0.93% Net) 0.00% (-0.93% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 1,198 0 716 200,716 0 716 200,716 0 716 200,716
2 1,141 2,457 388 1,415 201,415 388 1,415 201,415 394 1,421 201,421
3 1,141 3,778 1,187 2,100 202,100 1,187 2,100 202,100 1,203 2,116 202,116
4 1,141 5,165 1,970 2,769 202,769 1,970 2,769 202,769 2,001 2,800 202,800
5 1,141 6,621 2,737 3,421 203,421 2,737 3,421 203,421 2,789 3,473 203,473
6 1,141 8,151 3,484 4,055 204,055 3,484 4,055 204,055 3,564 4,135 204,135
7 1,141 9,757 4,211 4,667 204,667 4,211 4,667 204,667 4,327 4,784 204,784
8 1,141 11,443 4,914 5,257 205,257 4,914 5,257 205,257 5,077 5,419 205,419
9 1,141 13,213 5,592 5,820 205,820 5,592 5,820 205,820 5,812 6,040 206,040
10 1,141 15,072 6,239 6,353 206,353 6,239 6,353 206,353 6,530 6,645 206,645
11 1,141 17,024 7,112 7,112 207,112 7,112 7,112 207,112 7,489 7,489 207,489
12 1,141 19,074 7,828 7,828 207,828 7,828 7,828 207,828 8,307 8,307 208,307
13 1,141 21,226 8,499 8,499 208,499 8,499 8,499 208,499 9,095 9,095 209,095
14 1,141 23,485 9,118 9,118 209,118 9,118 9,118 209,118 9,849 9,849 209,849
15 1,141 25,858 9,677 9,677 209,677 9,677 9,677 209,677 10,567 10,567 210,567
16 1,141 28,349 10,168 10,168 210,168 10,168 10,168 210,168 11,244 11,244 211,244
17 1,141 30,965 10,578 10,578 210,578 10,578 10,578 210,578 11,876 11,876 211,876
18 1,141 33,712 10,891 10,891 210,891 10,891 10,891 210,891 12,458 12,458 212,458
19 1,141 36,596 11,086 11,086 211,086 11,086 11,086 211,086 12,988 12,988 212,988
20 1,141 39,624 11,141 11,141 211,141 11,141 11,141 211,141 13,460 13,460 213,460
21 1,141 42,803 11,032 11,032 211,032 11,032 11,032 211,032 13,869 13,869 213,869
22 1,141 46,142 10,735 10,735 210,735 10,735 10,735 210,735 14,205 14,205 214,205
23 1,141 49,647 10,225 10,225 210,225 10,225 10,225 210,225 14,450 14,450 214,450
24 1,141 53,328 9,472 9,472 209,472 9,472 9,472 209,472 14,605 14,605 214,605
25 1,141 57,192 8,437 8,437 208,437 8,437 8,437 208,437 14,669 14,669 214,669
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 0.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $ 1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-15
LIFE INSURANCE ILLUSTRATION
[LOGO] MONY
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 0.00% (-0.93% Net) 0.00% (-0.93% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 1,141 61,250 7,068 7,068 207,068 7,068 7,068 207,068 14,618 14,618 214,618
27 1,141 65,511 5,293 5,293 205,293 5,293 5,293 205,293 14,437 14,437 214,437
28 1,141 69,985 3,023 3,023 203,023 3,023 3,023 203,023 14,101 14,101 214,101
29 1,141 74,683 151 151 200,151 151 151 200,151 13,553 13,553 213,553
30 1,141 79,615 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 12,747 12,747 212,747
31 1,141 84,794 11,658 11,658 211,658
32 1,141 90,232 10,238 10,238 210,238
33 1,141 95,942 8,428 8,428 208,428
34 1,141 101,938 6,225 6,225 206,225
35 1,141 108,233 3,855 3,855 203,855
36 1,141 114,843 1,349 1,349 201,349
37 0 120,585 LAPSED LAPSED LAPSED
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 0.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-16
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Numeric Summary The following table shows how differences in investment returns and policy charges
would affect policy cash value and death benefit.
Guaranteed Charges* Guaranteed Charges** Current Charges***
---------------------- ---------------------- ----------------------
0.00% (-0.93% Net) 6.00% (5.07% Net) 6.00% (5.07% Net)
Policy Premium Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 0 716 200,716 0 767 200,767 0 767 200,767
5 1,141 2,737 3,421 203,421 3,458 4,143 204,143 3,515 4,200 204,200
10 1,141 6,239 6,353 206,353 8,927 9,041 209,041 9,274 9,388 209,388
20 1,141 11,141 11,141 211,141 22,640 22,640 222,640 25,762 25,762 225,762
@ Age 70 1,141 8,437 8,437 208,437 26,472 26,472 226,472 35,019 35,019 235,019
@ Age 85 1,141 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 36,584 36,584 236,584
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
* Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 34 based on guaranteed charges and a gross
investment return of 6.00%.
***Policy lapses in policy year 45 based on current charges and a gross
investment return of 6.00%.
Applicant's or We have received a copy of this illustration and understand that any not-
Policyowner's guaranteed elements are subject to change and could be either higher or lower.
Acknowledgement The agent has told us that they are not guaranteed.
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
Representative's I certify that this illustration has been presented to the applicant and that I have
Acknowledgement explained that any not-guaranteed elements illustrated are subject to change. I
have made no statements that are inconsistent with the illustration.
---------------------------------------------------------------- ------------------
Signature of Representative Date
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode: Annual . Riders: None Form #
B1-98
D-17
LIFE INSURANCE ILLUSTRATION
[LOGO] MONY
MONY Survivorship Variable Universal Life
Last Survivor Flexible Premium Variable Life to Maturity Policy
Standard Ledger Statement
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 6.00% (5.07% Net) 6.00% (5.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 1,198 0 716 200,716 0 767 200,767 0 767 200,767
2 1,141 2,457 388 1,415 201,415 537 1,564 201,564 543 1,570 201,570
3 1,141 3,778 1,187 2,100 202,100 1,479 2,392 202,392 1,496 2,409 202,409
4 1,141 5,165 1,970 2,769 202,769 2,453 3,252 203,252 2,486 3,285 203,285
5 1,141 6,621 2,737 3,421 203,421 3,458 4,143 204,143 3,515 4,200 204,200
6 1,141 8,151 3,484 4,055 204,055 4,495 5,065 205,065 4,584 5,155 205,155
7 1,141 9,757 4,211 4,667 204,667 5,562 6,018 206,018 5,694 6,150 206,150
8 1,141 11,443 4,914 5,257 205,257 6,658 7,000 207,000 6,845 7,187 207,187
9 1,141 13,213 5,592 5,820 205,820 7,780 8,009 208,009 8,038 8,267 208,267
10 1,141 15,072 6,239 6,353 206,353 8,927 9,041 209,041 9,274 9,388 209,388
11 1,141 17,024 7,112 7,112 207,112 10,363 10,363 210,363 10,819 10,819 210,819
12 1,141 19,074 7,828 7,828 207,828 11,714 11,714 211,714 12,301 12,301 212,301
13 1,141 21,226 8,499 8,499 208,499 13,091 13,091 213,091 13,832 13,832 213,832
14 1,141 23,485 9,118 9,118 209,118 14,487 14,487 214,487 15,411 15,411 215,411
15 1,141 25,858 9,677 9,677 209,677 15,896 15,896 215,896 17,036 17,036 217,036
16 1,141 28,349 10,168 10,168 210,168 17,308 17,308 217,308 18,705 18,705 218,705
17 1,141 30,965 10,578 10,578 210,578 18,710 18,710 218,710 20,416 20,416 220,416
18 1,141 33,712 10,891 10,891 210,891 20,082 20,082 220,082 22,164 22,164 222,164
19 1,141 36,596 11,086 11,086 211,086 21,401 21,401 221,401 23,947 23,947 223,947
20 1,141 39,624 11,141 11,141 211,141 22,640 22,640 222,640 25,762 25,762 225,762
21 1,141 42,803 11,032 11,032 211,032 23,769 23,769 223,769 27,603 27,603 227,603
22 1,141 46,142 10,735 10,735 210,735 24,756 24,756 224,756 29,461 29,461 229,461
23 1,141 49,647 10,225 10,225 210,225 25,565 25,565 225,565 31,316 31,316 231,316
24 1,141 53,328 9,472 9,472 209,472 26,155 26,155 226,155 33,171 33,171 233,171
25 1,141 57,192 8,437 8,437 208,437 26,472 26,472 226,472 35,019 35,019 235,019
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 6.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-18
LIFE INSURANCE ILLUSTRATION
[LOGO] MONY
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 6.00% (5.07% Net) 6.00% (5.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 1,141 61,250 7,068 7,068 207,068 26,446 26,446 226,446 36,837 36,837 236,837
27 1,141 65,511 5,293 5,293 205,293 25,982 25,982 225,982 38,605 38,605 238,605
28 1,141 69,985 3,023 3,023 203,023 24,960 24,960 224,960 40,295 40,295 240,295
29 1,141 74,683 151 151 200,151 23,240 23,240 223,240 41,840 41,840 241,840
30 1,141 79,615 LAPSED LAPSED LAPSED 20,663 20,663 220,663 43,185 43,185 243,185
31 1,141 84,794 17,064 17,064 217,064 44,291 44,291 244,291
32 1,141 90,232 12,267 12,267 212,267 45,093 45,093 245,093
33 1,141 95,942 6,090 6,090 206,090 45,512 45,512 245,512
34 1,141 101,938 LAPSED LAPSED LAPSED 45,521 45,521 245,521
35 1,141 108,233 45,329 45,329 245,329
36 1,141 114,843 44,957 44,957 244,957
37 1,141 121,783 44,033 44,033 244,033
38 1,141 129,071 42,466 42,466 242,466
39 1,141 136,723 40,049 40,049 240,049
40 1,141 144,757 36,584 36,584 236,584
41 1,141 153,193 31,961 31,961 231,961
42 1,141 162,051 25,955 25,955 225,955
43 1,141 171,352 18,337 18,337 218,337
44 1,141 181,118 8,779 8,779 208,779
45 0 190,174 LAPSED LAPSED LAPSED
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 6.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-19
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Numeric Summary The following table shows how differences in investment returns and policy charges
would affect policy cash value and death benefit.
Guaranteed Charges* Guaranteed Charges** Current Charges***
---------------------- ------------------------ ------------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
Policy Premium Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 0 716 200,716 0 819 200,819 0 819 200,819
5 1,141 2,737 3,421 203,421 4,307 4,992 204,992 4,370 5,055 205,055
10 1,141 6,239 6,353 206,353 12,812 12,926 212,926 13,227 13,341 213,341
20 1,141 11,141 11,141 211,141 48,060 48,060 248,060 52,454 52,454 252,454
@ Age 70 1,141 8,437 8,437 208,437 77,848 77,848 277,848 90,398 90,398 290,398
@ Age 85 1,141 LAPSED LAPSED LAPSED 150,831 150,831 350,831 372,881 372,881 572,881
@ Age 90 1,141 LAPSED LAPSED LAPSED 52,627 52,627 252,627 564,147 564,147 764,147
* Policy lapses in policy year 30 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 47 based on guaranteed charges and a gross
investment return of 12.00%.
***Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
Applicant's or We have received a copy of this illustration and understand that any not-
Policyowner's guaranteed elements are subject to change and could be either higher or lower.
Acknowledgement The agent has told us that they are not guaranteed.
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
---------------------------------------------------------------- ------------------
Signature of Applicant or Policyowner Date
Representative's I certify that this illustration has been presented to the applicant and that I have
Acknowledgement explained that any not-guaranteed elements illustrated are subject to change. I
have made no statements that are inconsistent with the illustration.
---------------------------------------------------------------- ------------------
Signature of Representative Date
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01. 2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-20
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement
Guaranteed Charges Current Charges
--------------------------------------------- ----------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 1,141 1,198 0 716 200,716 0 819 200,819 0 819 200,819
2 1,141 2,457 388 1,415 201,415 692 1,719 201,719 698 1,725 201,725
3 1,141 3,778 1,187 2,100 202,100 1,796 2,709 202,709 1,814 2,727 202,727
4 1,141 5,165 1,970 2,769 202,769 2,998 3,797 203,797 3,034 3,833 203,833
5 1,141 6,621 2,737 3,421 203,421 4,307 4,992 204,992 4,370 5,055 205,055
6 1,141 8,151 3,484 4,055 204,055 5,733 6,304 206,304 5,833 6,404 206,404
7 1,141 9,757 4,211 4,667 204,667 7,286 7,742 207,742 7,436 7,892 207,892
8 1,141 11,443 4,914 5,257 205,257 8,976 9,318 209,318 9,192 9,535 209,535
9 1,141 13,213 5,592 5,820 205,820 10,814 11,042 211,042 11,117 11,346 211,346
10 1,141 15,072 6,239 6,353 206,353 12,812 12,926 212,926 13,227 13,341 213,341
11 1,141 17,024 7,112 7,112 207,112 15,261 15,261 215,261 15,816 15,816 215,816
12 1,141 19,074 7,828 7,828 207,828 17,811 17,811 217,811 18,538 18,538 218,538
13 1,141 21,226 8,499 8,499 208,499 20,594 20,594 220,594 21,530 21,530 221,530
14 1,141 23,485 9,118 9,118 209,118 23,629 23,629 223,629 24,817 24,817 224,817
15 1,141 25,858 9,677 9,677 209,677 26,933 26,933 226,933 28,426 28,426 228,426
16 1,141 28,349 10,168 10,168 210,168 30,525 30,525 230,525 32,386 32,386 232,386
17 1,141 30,965 10,578 10,578 210,578 34,421 34,421 234,421 36,732 36,732 236,732
18 1,141 33,712 10,891 10,891 210,891 38,635 38,635 238,635 41,498 41,498 241,498
19 1,141 36,596 11,086 11,086 211,086 43,178 43,178 243,178 46,724 46,724 246,724
20 1,141 39,624 11,141 11,141 211,141 48,060 48,060 248,060 52,454 52,454 252,454
21 1,141 42,803 11,032 11,032 211,032 53,290 53,290 253,290 58,737 58,737 258,737
22 1,141 46,142 10,735 10,735 210,735 58,878 58,878 258,878 65,618 65,618 265,618
23 1,141 49,647 10,225 10,225 210,225 64,832 64,832 264,832 73,142 73,142 273,142
24 1,141 53,328 9,472 9,472 209,472 71,157 71,157 271,157 81,378 81,378 281,378
25 1,141 57,192 8,437 8,437 208,437 77,848 77,848 277,848 90,398 90,398 290,398
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 12.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01.2001
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-21
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
----------------------------------------------- -------------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 1,141 61,250 7,068 7,068 207,068 84,885 84,885 284,885 100,262 100,262 300,262
27 1,141 65,511 5,293 5,293 205,293 92,225 92,225 292,225 111,040 111,040 311,040
28 1,141 69,985 3,023 3,023 203,023 99,798 99,798 299,798 122,803 122,803 322,803
29 1,141 74,683 151 151 200,151 107,510 107,510 307,510 135,591 135,591 335,591
30 1,141 79,615 LAPSED LAPSED LAPSED 115,249 115,249 315,249 149,466 149,466 349,466
31 1,141 84,794 122,887 122,887 322,887 164,513 164,513 364,513
32 1,141 90,232 130,286 130,286 330,286 180,801 180,801 380,801
33 1,141 95,942 137,289 137,289 337,289 198,396 198,396 398,396
34 1,141 101,938 143,709 143,709 343,709 217,431 217,431 417,431
35 1,141 108,233 149,307 149,307 349,307 238,294 238,294 438,294
36 1,141 114,843 153,765 153,765 353,765 261,211 261,211 461,211
37 1,141 121,783 156,680 156,680 356,680 286,028 286,028 486,028
38 1,141 129,071 157,549 157,549 357,549 312,884 312,884 512,884
39 1,141 136,723 155,805 155,805 355,805 341,815 341,815 541,815
40 1,141 144,757 150,831 150,831 350,831 372,881 372,881 572,881
41 1,141 153,193 141,971 141,971 341,971 406,253 406,253 606,253
42 1,141 162,051 128,523 128,523 328,523 442,001 442,001 642,001
43 1,141 171,352 109,729 109,729 309,729 480,215 480,215 680,215
44 1,141 181,118 84,752 84,752 284,752 520,905 520,905 720,905
45 1,141 191,372 52,627 52,627 252,627 564,147 564,147 764,147
46 1,141 202,139 12,240 12,240 212,240 610,021 610,021 810,021
47 1,141 213,445 LAPSED LAPSED LAPSED 658,602 658,602 858,602
48 1,141 225,315 709,968 709,968 909,968
49 1,141 237,779 764,752 764,752 964,752
50 1,141 250,867 823,228 823,228 1,023,228
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 12.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-22
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Survivorship Variable Universal Life
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
Standard Ledger Statement continued
Guaranteed Charges Current Charges
----------------------------------------- -----------------------------
0.00% (-0.93% Net) 12.00% (11.07% Net) 12.00% (11.07% Net)
End Premium
of Premium Accum'd Cash Fund Death Cash Fund Death Cash Fund Death
Year Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 1,141 264,608 885,331 885,331 1,085,331
52 1,141 279,037 950,616 950,616 1,150,616
53 1,141 294,187 1,020,147 1,020,147 1,220,147
54 1,141 310,095 1,094,259 1,094,259 1,294,259
55 1,141 326,798 1,173,424 1,173,424 1,373,424
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value. Loan interest at an
annual rate of 5.25% will be charged in arrears on new or outstanding loans
during the first 10 policy years. In policy years 11 and later, interest will
be charged at the annual rate of 4.75% in arrears. These loan interest rates
are guaranteed in the policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the
different investment rates of return for The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc. portfolios. The Cash Value, Fund
Value and Death Proceeds for a policy would be different from those shown if
the actual rates of investment return applicable to the policy averaged 0.00%
or 12.00% over a period of years, but also fluctuated above or below those
averages for individual policy years. No representations can be made by MONY
Life Insurance Company of America, The Alger American Fund, Enterprise
Accumulation Trust, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lord Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY
Series Fund, Inc., PBHG Insurance Series Fund, PIMCO Variable Insurance Trust,
or The Universal Institutional Funds, Inc., that these hypothetical rates of
return can be achieved for any one year, or sustained over any period of time.
Age 45 Male Non-Smoker Preferred
Age 45 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option:
Specified Amount for Option 2 . TP: $1,141.26 . GPT Version 01.2002
Initial Modal Premium: $1,141.26 . Premium Mode:
Annual . Riders: None Form # B1-98
D-23
The complete registration statement and other filed documents for MONY America
Variable Account L can be reviewed and copied at the Securities and Exchange
Commission's Public Reference Room in Washington, D.C. You may get information
on the operation of the public reference room by calling the Securities and
Exchange Commission at 1-800-SEC-0330. The registration statement and other
filed documents for MONY America Variable Account L are available on the
Securities and Exchange Commission's Internet site at http://www.sec.gov. You
may get copies of this information by paying a duplicating fee, and writing the
Public Reference Section of the Securities and Exchange Commission, Washington,
D.C. 20549-6009.
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the 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
The By-Laws of MONY Life Insurance Company of America ("MONY America")
provide, in Article VI as follows:
SECTION 1. The Corporation shall indemnify any existing or former
director, officer, employee or agent of the Corporation against all expenses
incurred by them and each of them which may arise or be incurred, rendered
or levied in any legal action brought or threatened against any of them for
or on account of any action or omission alleged to have been committed while
acting within the scope of employment as director, officer, employee or
agent of the Corporation, whether or not any action is or has been filed
against them and whether or not any settlement or compromise is approved by
a court, all subject and pursuant to the provisions of the Articles of
Incorporation of this Corporation.
SECTION 2. The indemnification provided in this By-Law shall not be
deemed exclusive of any other rights to which those seeking indemnification
may be entitled under By-Law, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding office, and
shall continue as to a person who has ceased to be a director, officer,
employee or agent and shall inure to the benefit of the heirs, executors,
and administrators of such a person.
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 for
such liabilities (other than the payment by the Registrant of expense incurred
or paid by a director, officer, or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant, will (unless in the opinion of its counsel the
matter has been settled by controlling precedent) submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
REPRESENTATIONS RELATING TO SECTION 26 OF THE
INVESTMENT COMPANY ACT OF 1940
Registrant and MONY Life Insurance Company of America represent that the
fees and charges deducted under the contract, in the aggregate, are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by MONY Life Insurance Company of America.
II-1
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The Facing Sheet.
Cross-Reference to items required by Form N-8B-2.
Prospectus.
The Undertaking to file reports.
The signatures.
Written consents of the following persons:
a. PricewaterhouseCoopers LLP, Independent Accountants
The following exhibits:
1. The following exhibits correspond to those required by paragraph A of
the instructions as exhibits to Form N-8B2:
(1)Resolution of the Board of Directors of MONY America authorizing
establishment of MONY America Variable Account L, filed as Exhibit 1
to Registration Statement on Form S-6, dated February 21, 1985
(Registration Nos. 2-95900 and 811-4235), is incorporated herein by
reference.
(2)Not applicable.
(3)(a) Underwriting Agreement between MONY Life Insurance Company of
America, MONY Series Fund, Inc., and MONY Securities Corp., filed as
Exhibit 3(a) to Pre-Effective Amendment No. 1 to Registration
Statement on Form S-6, dated January 6, 1995 (Registration Nos.
33-82570 and 811-4235), is incorporated by referenced herein.
(b)Proposed specimen agreement between MONY Securities Corp. and
registered representatives, filed as Exhibit 3(b) of
Pre-Effective Amendment No. 1, dated December 17, 1990, to
Registration Statement on Form N-4 (Registration Nos. 33-37722
and 811-6126) is incorporated herein by reference.
(c)Commission schedule (with Commission Contract), filed as Exhibit
3(c) to Pre-Effective Amendment No. 1 to Registration Statement
on Form S-6, dated January 6, 1995 (Registration Nos. 33-82570
and 811-4235), is incorporated by referenced herein.
(4)Not applicable.
(5)Form of policy, filed as Exhibit 1(5) to Registration Statement on
Form S-6, dated June 16, 1998 (Registration Nos. 333-56969 and
811-4235), is incorporated herein by reference.
(6)Articles of Incorporation and By-Laws of MONY America filed as
Exhibits 6(a) and 6(b), respectively, to Registration Statement
Registration No. 33-13183) dated April 6, 1987, is incorporated
herein by reference.
(7)Not applicable.
(8)(a) Form of agreement to purchase shares. Application Form for
Flexible Premium Variable Universal Life Insurance Policy, filed as
Exhibit 1.(10) to Pre-Effective Amendment No. 1, dated January 6,
1995, to Registration Statement on Form S-6 (Registration No.
33-82570), is incorporated herein by reference.
(b)Investment Advisory Agreement between MONY Life Insurance Company
of America and MONY Series Fund, Inc. filed as Exhibit 5(i) to
Post-Effective Amendment No. 14 to Registration Statement
(Registration Nos. 2-95501 and 811-4209) dated February 27, 1998,
is incorporated herein by reference.
II-2
(c)Services Agreement between The Mutual Life Insurance Company of
New York and MONY Life Insurance Company of America filed as
Exhibit 5(ii) to Pre-Effective Amendment to Registration
Statement (Registration Nos. 2-95501 and 811-4209) dated July 19,
1985, is incorporated herein by reference.
(d)Fund Participation Agreement among Enterprise Accumulation Trust,
MONY Life Insurance Company of America and MONY Life Insurance
Company, filed as Exhibit 8(a) to Post-Effective Amendment No. 7
to Registration Statement on Form N-4 dated April 18, 2001
(Registration Nos. 333-72259 and 811-6216), is incorporated
herein by reference.
(e)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Retirement System Investors Inc., as sub-adviser, filed as
Exhibit (d)(iii) to Post-Effective Amendment No. 17 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated May 3, 1999.
(f)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and 1740 Advisers, Inc., as sub-adviser, filed as Exhibit (d)(v)
to Post-Effective Amendment No. 17 to Registration Statement
(Registration Nos. 33-21534 and 811-05543) dated May 3, 1999.
(g)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Marsico Capital Management, LLC, as sub-adviser, filed as
Exhibit (d)(vi) to Post- Effective Amendment No. 20 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated April 27, 2000.
(h)Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Montag & Caldwell, Inc., as sub-adviser, filed as Exhibit
(d)(ii) to Post-Effective Amendment No. 17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.
(i)Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and TCW Investment Management Company, as sub-adviser, filed as
Exhibit (d)(iv) to Post-Effective Amendment No. 20 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated April 27, 2000.
(j)Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and William D. Witter, Inc., as sub-adviser, filed as Exhibit
(d)(vii) to Post-Effective Amendment No. #17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.
(k)Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and GAMCO Investors, Inc., as sub-adviser, filed as Exhibit
(d)(viii) to Post-Effective Amendment No. #17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.
(l)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital" ) and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Vontobel USA Inc., as sub-adviser, filed as Exhibit (d)(ix)
to Post-Effective Amendment No. 17 to Registration Statement
(Registration Nos. 33-21534 and 811-05543) dated May 3, 2000.
II-3
(m)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Caywood-Scholl Capital Management, as sub-adviser, filed as
Exhibit (d)(xi) to Post- Effective Amendment No. 17 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated May 3, 1999.
(n)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and OpCap Advisors, as sub-adviser, filed as Exhibit (d)(xv) to
Post-Effective Amendment No. 20 to Registration Statement
(Registration Nos. 33-21534 and 811-05543) dated April 27, 2000.
(o)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Sanford C. Bernstein & Co., Inc., as sub-adviser, filed as
Exhibit (d)(xvi) to Post-Effective Amendment No. 20 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated April 27, 2000.
(p)Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Fred Alger Management, Inc., as sub-adviser, filed as Exhibit
(d)(xiii) to Post-Effective Amendment No. 18 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May
28, 1999.
(9) Not applicable.
(10) Application Form for Flexible Premium Variable Universal Life
Insurance Policy, filed as Exhibit 1.(10) to Pre-Effective Amendment
No. 1, dated January 6, 1995, to Registration Statement on Form S-6
(Registration No. 33-82570), is incorporated herein by reference.
(11) Code of Ethics for Operation of MONY Life Insurance Company and its
Subsidiaries, filed as Exhibit (11) to Post-Effective Amendment No.
12 to Registration Statement on Form S-6, dated February 27, 2001
(Registration Nos. 33-82570 and 811-4235) is incorporated herein by
reference.
2. Opinion and consent of Arthur D. Woods, Vice President--Variable
Products and Broker-Dealer Operations Counsel, MONY Life Insurance
Company, as to legality of the securities being registered is filed
herein as Exhibit 2.
3. Not applicable.
4. Not applicable.
5. Consent of PricewaterhouseCoopers LLP as to financial statements of MONY
America Variable Account L and MONY Life Insurance Company of America.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
MONY America Variable Account L of MONY Life Insurance Company of America, has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of New York and the State
of New York, on this 31st day of October, 2001. Registrant hereby certifies
that the requirements of Rule 485 have been met.
MONY AMERICA VARIABLE ACCOUNT L OF
MONY LIFE INSURANCE COMPANY OF
AMERICA
/s/ MICHAEL I. ROTH
By: _________________________________
Michael I. Roth,
Director, Chairman of the Board
and
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been duly signed below by the following persons in
the capacities and on the date indicated.
Signature Date
--------- ----
/s/ MICHAEL I. ROTH October 31, 2001
--------------------------------------------------
Michael I. Roth
Director, Chairman of the Board
and Chief Executive Officer
/s/ SAMUEL J. FOTI October 31, 2001
--------------------------------------------------
Samuel J. Foti
Director, President and Chief Operating Officer
/s/ RICHARD DADDARIO October 31, 2001
--------------------------------------------------
Richard Daddario
Director, Vice President and Controller (Principal
Financial and Accounting Officer)
/s/ KENNETH M. LEVINE October 31, 2001
--------------------------------------------------
Kenneth M. Levine
Director and Executive Vice President
/s/ PHILLIP A. EISENBERG October 31, 2001
--------------------------------------------------
Phillip A. Eisenberg
Director, Vice President and Chief Actuary
/s/ MARGARET G. GALE October 31, 2001
--------------------------------------------------
Margaret G. Gale
Director and Vice President
/s/ CHARLES P. LEONE October 31, 2001
--------------------------------------------------
Charles P. Leone
Director and Vice President
/s/ STEVEN G. ORLUCK October 31, 2001
--------------------------------------------------
Steven G. Orluck
Director and Vice President
/s/ RICHARD E. CONNORS October 31, 2001
--------------------------------------------------
Richard E. Connors
Director
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
(2) Opinion and consent of Arthur D. Woods, Vice President--Variable Products and Broker-Dealer
Operations Counsel, MONY Life Insurance Company
Consent of PricewaterhouseCoopers LLP, Independent Accountants