Registration No.
Registration No. 811-4235
Fiscal Year End December 31
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM S-6
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933 [X]
OF SECURITIES OF UNIT
INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
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PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO.
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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)
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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 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.
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CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2
Item No. of
Form N-8B-2 Caption in Prospectus
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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
39. MORE ABOUT THE POLICY
40. Not applicable
41. MORE ABOUT THE POLICY
Item No. of
Form N-8B-2 Caption in Prospectus
----------- ---------------------
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
PART I
(INFORMATION REQUIRED IN A PROSPECTUS)
I-1
Prospectus
Dated January 14, 2002
Variable Universal Life Insurance Policy
MONY Life Insurance Company of America (the "Company") issues a variable
universal life insurance policy described in this Prospectus. Among the
policy's many terms are:
Allocation of Premiums 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 them into a separate account. That separate
account is called 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 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 your not earning any money on your premium payments and
cash values and also that your 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
and cash values 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 you die before you reach 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
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Summary of the Policy................................................ 1
Important Policy Terms............................................. 1
Purpose of the Policy.............................................. 1
Policy Premium Payments and Values................................. 1
Charges and Deductions............................................. 3
Fees and Expenses of the Funds..................................... 4
The Death Benefit.................................................. 9
Premium Features................................................... 10
MONY America Variable Account L.................................... 10
Allocation Options................................................. 11
Transfer of Fund Value............................................. 11
Policy Loans....................................................... 11
Full Surrender..................................................... 11
Partial Surrender.................................................. 11
Right to Return Policy Period...................................... 11
Grace Period and Lapse............................................. 12
Tax Treatment of Increases in Fund Value........................... 12
Tax Treatment of Death Benefit..................................... 12
Riders............................................................. 12
Contacting the Company............................................. 13
Understanding the Policy........................................... 14
Detailed Information about the Company and MONY America Variable
Account L.......................................................... 15
MONY Life Insurance Company of America............................. 15
MONY America Variable Account L.................................... 15
The Funds............................................................ 21
The Alger American Fund............................................ 21
Enterprise Accumulation Trust...................................... 22
INVESCO Variable Investment Funds, Inc............................. 23
Janus Aspen Series................................................. 24
Lord Abbett Series Fund............................................ 24
MFS(R) Variable Insurance Trust/SM/................................ 25
MONY Series Fund, Inc.............................................. 25
PBHG Insurance Series Fund......................................... 26
PIMCO Variable Insurance Trust..................................... 26
The Universal Institutional Funds, Inc............................. 27
Purchase of Portfolio Shares by MONY America Variable Account L.... 27
Detailed Information About The Policy................................ 28
Application for a Policy........................................... 28
Right to Examine a Policy -- Right to Return Policy Period......... 30
Premiums........................................................... 30
Allocation of Net Premiums......................................... 33
Death Benefits under the Policy.................................... 33
Changes in Specified Amount........................................ 36
Changes in Additional Term Life Insurance Amount................... 37
Guaranteed Death Benefit........................................... 37
Riders............................................................. 38
Benefits at Maturity............................................... 41
Policy Values...................................................... 41
Determination of Fund Value........................................ 42
Calculating Unit Values for Each Subaccount........................ 43
i
Page
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Transfer of Fund Value............................................. 44
Right to Exchange Policy........................................... 44
Policy Loans....................................................... 45
Full Surrender..................................................... 46
Partial Surrender.................................................. 46
Grace Period and Lapse............................................. 47
Charges and Deductions............................................... 50
Deductions from Premiums........................................... 51
Daily Deduction from MONY America Variable Account L............... 51
Deductions from Fund Value......................................... 52
Transaction and Other Charges...................................... 54
Fees and Expenses of the Funds..................................... 54
Guarantee of Certain Charges....................................... 54
Other Information.................................................... 55
Federal Income Tax Considerations.................................. 55
Charge for Company Income Taxes.................................... 59
Voting of Fund Shares.............................................. 59
Disregard of Voting Instructions................................... 60
Report to Policy Owners............................................ 60
Substitution of Investments and Right to Change Operations......... 60
Changes to Comply with Law......................................... 61
Performance Information.............................................. 61
The Guaranteed Interest Account...................................... 62
General Description................................................ 62
Death Benefit...................................................... 63
Policy Charges..................................................... 63
Transfers.......................................................... 63
Surrenders and Policy Loans........................................ 64
More About the Policy................................................ 64
Ownership.......................................................... 64
Beneficiary........................................................ 64
Notification and Claims Procedures................................. 65
Payments........................................................... 65
Payment Plan/Settlement Provisions................................. 65
Payment in Case of Suicide......................................... 65
Assignment......................................................... 66
Errors on the Application.......................................... 66
Incontestability................................................... 66
Policy Illustrations............................................... 66
Distribution of the Policy......................................... 66
More About the Company............................................... 67
Management......................................................... 67
State Regulation................................................... 69
Telephone Transfer Privileges...................................... 69
Legal Proceedings.................................................. 70
Legal Matters...................................................... 70
Registration Statement............................................. 70
Independent Accountants............................................ 70
Financial Statements............................................... 70
Index to Financial Statements...................................... F-1
ii
Page
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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 on page 59. 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, 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. In certain cases, this also applies to the first three
policy years following an increase in the Specified Amount.
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.)
Specified Amount -- The minimum 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 life of the insured. If the
insured is alive on the anniversary of the policy date when the insured is age
100, a maturity benefit will be paid instead of a death benefit. The policy
provides a death benefit equal to your choice of (a) its Specified Amount, or
(b) its Specified Amount plus accumulated Fund Value. 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 owner of the
policy, choose the amount and frequency of premium payments, within certain
limits.
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
1
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 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 30), 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 fifteen 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 Fund Value and are described
in further detail below.
The policy remains in effect until the earliest of
(1) a grace period expires without the payment of sufficient additional
premium to cover policy charges or repayment of the Outstanding Debt,
(2) age 100,
(3) death of the insured, or
(4) 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 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 Minimum Monthly Premium for three more years after the increase. 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 premiums and is discussed below.
2
Charges and Deductions
The policy provides for the deduction of the various charges, costs, and
expenses from the Fund Value of the policy. These deductions are summarized in
the table below. Additional details can be found on pages 48 - 51.
Deductions from Premiums
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Sales Charge -- Varies based on Specified Amount Specified Amounts less than $500,000 --
plus Term Life Term Rider amount in effect. It is 4% Policy Years 1-10
a % of Premium paid. 1% Policy Years 11 and later
Specified Amounts of $500,000 or more --
2% Policy Years 1-10
0.5% Policy Years 11 and later
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Tax Charge State and local -- 2.25%
Federal -- 1.25% (0% for individual qualified plan
issues)
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Daily Deduction from MONY America Variable Account L
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Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
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Deductions from Fund Value
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Cost of Insurance Charge Current cost of insurance rate x net amount at risk
at the beginning of the policy month
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Administrative Charge -- monthly $5.00
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Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the first 10
Based on issue age. policy years (or for 10 years from the date of any
increase in Specified Amount)
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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* that at least the amount of premiums set forth in the
policy itself be paid in order to remain in effect.
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Optional Insurance Benefits Charge As applicable.
Monthly Deduction for any other Optional
Insurance Benefits added by rider.
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Transaction and Other Charges
- Partial Surrender Fee $10
- Transfer of Fund Value (at Company's Option) $25 (maximum per transfer)/1/
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Surrender Charge See discussion of Surrender Charge on page 50 for
Grades from 80% to 0 over 15 years (10years for grading schedule.
issue ages 76-85) based on a 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.
3
MONY America 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 its operations. Those expenses
are also shown in the table below.
Fees and Expenses of the Funds
The Funds and each of their 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 below. 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%
- -------------------------
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/(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.
4
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.
5
Proforma Annual Expenses for the Year Ended December 31, 2000
(as a percentage of average net assets)
Distribution and
Fund/Portfolio Management Fees Other Expenses Service (12b-1) Fee Total 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.
6
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.
-------------------------------------------------------------------------------------------
7
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.
--------------------------------------------------------------------------------
8
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 $50,000. 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. (See page 27 for an explanation of the two life insurance
definitions.) 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.
9
Option 2 -- The death benefit equals the greater of
(a) the Specified Amount plus the 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 Fund Value as of the date of
the 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 30.
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 35.
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 financial 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.
10
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
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 when 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 insured's lifetime 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 your request and
return it to you. A partial surrender will decrease the Specified Amount. See
"Partial Surrender," at page 43.
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 27.
11
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
(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 times the number of months your policy has been in
effect. If you increase the Specified Amount during the first three policy
years, 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 34. 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 premium payments 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 Fund
Value for each optional benefit added to your policy. There are twelve riders
available with this policy:
. Guaranteed Death Benefit Rider
. Guaranteed Death Benefit to Age 100 Rider
. Spouse's Yearly Renewable Term Rider
. Additional Term Life Insurance Rider
12
. Children's Term Life Insurance Rider
. Accidental Death and Dismemberment Rider
. Purchase Option Rider
. Waiver of Monthly Deduction Rider
. Waiver of Specified Premiums Rider
. Term Life Term Rider
. Maturity Extension Rider
. Enhanced Maturity Extension Rider
----------
Riders are available only in states where approval has been received.
Contacting the Company
All written requests, notices, and forms required by the policies, and any
questions or inquiries should be directed to the Company's Operations Center at
1 MONY Plaza, Syracuse, New York 13202.
13
Understanding the Policy
The following chart may help you to understand how the policy works.
[FLOW CHART]
14
DETAILED 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 the corporate successor of VICO Credit Life Insurance Company incorporated
in Arizona on March 6, 1969. 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 Virgin Islands.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). MONY was organized as a mutual life insurance company under the laws
of the State of New York in 1842 under the name 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 did not have any material effect on the
obligations of the Company under the policy or on MONY America Variable Account
L. The principal offices of both MONY and the Company are located at 1740
Broadway, New York, New York 10019.
At 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.
The Company intends to administer the policies itself.
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
15
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 Funds. For example, the Long Term Bond 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 Portfolio Annual rate of 0.25% of
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, 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 Funds.
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 as well as for corporations
who provide coverage and benefits for key employees. 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 life of an insured for ages up to and including 85
with evidence of insurability that satisfies the Company. If a qualified plan
will own the policy, the insured cannot be more than 70 years old. The age of
the insured is the age on 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 $50,000. 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 upon 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 27.
Coverage under the Temporary Insurance Agreement ends (except for contracts
issued in Kansas) on the earliest of:
(1) the Policy Release Date, if the policy is issued as applied for;
28
(2) 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;
(3) no later than 90 days from the date the Temporary Insurance Agreement
is signed;
(4) the 45th day after the form is signed if you have not finished the
last required medical exam;
(5) 5 days after the Company sends notice to you that it declines to
issue any policy; and
(6) 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:
(1) the Policy Release Date, if the policy is issued as applied for;
(2) the 15(th) day after the Policy Release Date or the date the policy
takes effect, if the policy is issued other than as applied for;
(3) the date you tell the Company that the policy will be refused; and
(4) the day written notice of the declination and refund of premium is
provided to the applicant.
If the insured dies 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.
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 premiums (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.
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
payments specified in your policy 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 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," page 27.
29
Policy Date
The Company may approve the backdating of a policy. The policy may be
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
Insureds are assigned to underwriting (risk) classes. 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) the insured's
(a) Age,
(b) smoking status,
(c) gender (unless unisex cost of insurance rates apply, see "Deductions
From Fund Value -- Cost of Insurance," page 49), and
(d) underwriting class.
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.
30
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 electronic funds transfer.
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.
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.
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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 30 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.
Your policy is guaranteed to remain in effect as long as
(1) the Cash Value is greater than zero, or
(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; or
32
(3) 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 $50,000.
As long as the policy is in effect, the Company will, upon proof of death of
an 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).
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.
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.
33
Option 2 -- The death benefit equals the greater of
(a) the Specified Amount of the policy 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.
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 the insured is a male age 35, standard class, non-smoker at
issue. It is also assumed that the insured is age 65 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 $ 85,000 $ 60,000
Death Benefit Percentage............... 178.4% 178.4% 178.4% 178.4%
Death Benefit under Option 1........... $100,000 $107,040 $151,640 $175,000
Death Benefit under Option 2........... $135,000 $160,000 $185,000 $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 178.4% = $62,440).
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 178.4% = $107,040)
for Policy 2; $85,000 x 178.4% = $151,640 for Policy 3) 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 178.4% = $107,040).
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 + $85,000 = $185,000 for Policy
3) since it is greater than the Fund Value multiplied by the death benefit
percentage ($35,000 x 178.4% = $62,440 for Policy 1; $60,000 x 178.4% =
$107,040 for Policy 2; and $85,000 x 178.4% = $151,640 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 178.4% = $107,040).
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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 $ 85,000 $ 60,000
Death Benefit Percentage............... 120% 120% 120% 120%
Death Benefit under Option 1........... $100,000 $100,000 $102,000 $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 120% = $42,000 for Policy
1 and $60,000 x 120% = $72,000 for Policy 2).
Option 1, Policy 3: The death benefit is equal to the Fund Value multiplied by
the death benefit percentage since ($85,000 x 120% = $102,000) 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 120% = $72,000).
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 + $85,000 = $185,000 for Policy
3) since it is greater than the Fund Value multiplied by the death benefit
percentage ($35,000 x 120% = $42,000 for Policy 1; $60,000 x 120% = $72,000 for
Policy 2; and $85,000 x 120% = $102,000 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 120% = $72,000).
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. 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.
35
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 "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 insured's age 85 (age 70 for individual qualified
plans, i.e. plans qualified under 401(a), including 401(k) plans, and 403(a) of
the Internal Revenue Code. 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 the 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.
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 47. 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.
36
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. Any decrease in the Term Life Term Insurance Rider will be applied to
reduce the coverage segments of the Rider in the order of the most recent
increases successively and finally to the original Rider.
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;
. 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
37
(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 effect
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 are 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.
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.
38
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.
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.
39
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.
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 Term
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).
Spouse's Yearly Renewable Term Rider
This rider provides for term insurance benefits on the life of the insured's
spouse, to the spouse's age 80. The minimum amount of coverage is $25,000. The
rider coverage may be converted without evidence of insurability to any level
premium, level face amount permanent plan of insurance offered by the Company
at any time prior to the spouse's age 65 or 5 years from the issue of the
rider, if later.
Children's Term Life Insurance Rider
This rider provides term insurance coverage on the lives of the children of
the insured under age 18. The coverage continues to the policy anniversary
after the child's 22nd birthday. It provides coverage for children upon birth
or legal adoption without presenting evidence of insurability, if the rider is
applied for and issued at the same time as the policy is applied for and
issued. If the rider applied for after the policy is issued, different
requirements may be imposed. Children include children born to or adopted by
the insured and stepchildren of the insured. Coverage is limited to the lesser
of 1/5th of the initial Specified Amount plus the Term Life Term Rider plus
the Additional Term Life Insurance Rider or $10,000. Upon the expiration of the
rider coverage, it may be converted to any level premium, level face amount
permanent plan of insurance then offered by the Company, for up to five times
the rider coverage amount.
Accidental Death and Dismemberment Rider
This rider pays a benefit amount if the insured dies or suffers a specified
dismemberment as a result of an accident. The accident must occur after the
insured's age 5 and prior to insured's age 70. A benefit equal to twice the
rider amount is payable if
(1) accidental death occurs as the result of riding as a passenger, and
(2) the accidental death occurred while riding in a public conveyance, and
(3) the public conveyance was being operated commercially to transport
passengers for hire.
The maximum amount of coverage is the initial Specified Amount plus term
insurance coverage, plus the Additional Term Life Insurance Rider but not more
than the greater of
(1) $100,000 total coverage of all such insurance in the Company or its
affiliates, or
(2) $200,000 of all such coverages regardless of insurance companies
issuing such coverages.
Purchase Option Rider
This Rider provides the option to purchase up to $100,000 of additional
coverage without providing additional evidence that the insured remains
insurable. This additional coverage may be added on each policy anniversary
when the insured's age is 25, 28, 31, 34, 37, 40, 43, 46 and 49. In addition,
the future right to
40
purchase new insurance on the next option date may be advanced and exercised
immediately upon the following events:
. Marriage of the insured.
. Birth of a child of the insured.
. Legal adoption of a child by insured.
A period of term insurance is automatically provided starting on the date of
the specified event. The interim term insurance, and the option to accelerate
the purchase of the coverage expires 60 days after the specified event.
Waiver of Monthly Deduction Rider
This rider provides for the waiver of certain charges while the insured has
a covered disability and the policy is in effect. While the 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 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.
Term Life Term Rider
This rider provides additional death benefits on the life of the insured
until the insured reaches age 80. The minimum amount of coverage is $25,000.
You may convert the rider coverage without evidence of insurability to any
level premium, level face amount permanent policy of insurance offered by the
Company. The conversion must occur prior to the insured's age 65 or 5 years
from the issue of the rider, whichever is later.
Benefits at Maturity
The maturity date for this policy is the policy anniversary on which the
insured is age 100. If the insured is living on the maturity date, the Company
will pay to you, 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 insured's death (See Maturity Extension Rider
and Enhanced Maturity Extension Rider in "Riders" section, page .).
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 the Guaranteed Interest
Account. It also includes the amount set aside in the Company's Loan Account,
and any interest, to secure Outstanding Debt.
41
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
38. 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.
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 the 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 39.) 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.
42
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 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.
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 MONY America Variable
Account L -- 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.
43
[FLOW CHART]
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
44
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 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.
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 the Company.
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 at the time 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
45
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 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 (or, in some instances, the third
anniversary following an increase), 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 the
insured. The amount received for a full surrender is the policy's Fund Value
less (1) any surrender charge, and (2) any Outstanding Debt.
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 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 insured dies after the request for a partial surrender is sent to the
Company and prior to it being
46
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 30.
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 52.
Grace Period and Lapse
Your policy will remain in effect as long as
(1) it has a Cash Value greater than zero, and you make any required
additional premium payments during the 61-day Grace Period or
(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 you make any required additional
premium payments during the 61-day Grace Period.
Special Rule for First Three Policy Years
During the first three policy years (or the first three policy years
following an increase in Specified Amount during that period), your policy and
any riders are guaranteed not to lapse if on each monthly anniversary day either
(1) your policy's Cash Value is greater than zero, or
(2) the sum of the premiums paid minus all partial surrenders (excluding
related fees), minus any Outstanding Debt, is greater than or equal to
(a) the Minimum Monthly Premium times the number of months your
policy has been in effect (or number of months from the most recent
increase in Specified Amount).
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 is 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
47
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 (or within three years of an increase in Specified Amount during that
period), 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 (or after three years from the most
recent increase in Specified Amount during that period), the payment required is
(1) the monthly deduction not paid, plus
(2) two succeeding monthly deductions plus the amount of the deductions
from premiums for various taxes and the sales charge.
(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 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
(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) 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 35.
While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
your policy will 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
48
(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 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.
49
CHARGES AND DEDUCTIONS
The following chart is intended to provide an overview of the current
charges and deductions under the policy. Please see the discussion of each item
in this prospectus and in the policy for further details.
Deductions from Premiums
------------------------------------------------------------------------------------------------------
Sales Charge -- Varies based on Specified Specified Amounts less than $500,000 --
Amountplus Term Life Term Rider amount in 4% Policy Years 1-10
effect. It isa % of Premium paid. 1% Policy Years 11 and later
Specified Amounts of $500,000 or more --
2% Policy Years 1-10
0.5% Policy Years 11 and later
------------------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.25% (0% for individual qualified
plans)
------------------------------------------------------------------------------------------------------
Daily Deduction from MONY America Variable Account L
------------------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- .35% of subaccount value (0.000959% daily)
MaximumAnnual Rate
------------------------------------------------------------------------------------------------------
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 $5.00
------------------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the first 10
Based on issue age policy years (or for 10 years from the date of any
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
BenefitRider* 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
OptionalInsurance Benefits added by rider
------------------------------------------------------------------------------------------------------
Transaction and Other Charges $10
- Partial Surrender Fee $25 (maximum per transfer)/1/
- Transfer of Fund Value (at Company's
Option)
------------------------------------------------------------------------------------------------------
Surrender Charge Grades from 80% to 0 over See discussion of Surrender Charge on page 50 for
15years (11 years for issue ages 76-85) grading schedule.
based on aschedule. Factors per $1,000 of
Specified Amountvary based on issue age,
gender, and underwritingclass
------------------------------------------------------------------------------------------------------
* The Guaranteed Death Benefit Rider is not available in all states.
/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
50
Guaranteed Interest Account and of the deductions from MONY America Variable
Account L and from the policy's Fund Value.
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 the total of the
Specified Amount plus the Term Life Term Insurance
Rider plus the Interactive Term Rider amount in
effect on the policy date. The charge is a percent
of each premium paid.
Specified Amount plus any Term Life Term Insurance
amount in force less than $500,000 -- 4% Policy
Years 1-10
1% Policy Years 11 and later
Specified Amount plus any Term Life Term Insurance
amount in force of $500,000 or more -- 2% Policy
Years 1-10
0.5% Policy Years 11 and later
You should refer to your policy to determine your Specified Amount and the
amount of any Term Life Term Insurance in force.
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 amounts 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% (0% for individual
qualified plans)
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. Currently, these taxes range from 0% to 4%. Therefore, the 2.25% current
deduction may be higher or lower than the actual premium tax imposed by a
jurisdiction. Our current tax charge is an approximate average of the actual
premium tax we expect to pay on premiums. 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. No charge will
be deducted where premiums received from you are not subject to this tax, such
as premiums paid on policies issued to individual qualified plans.
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.
51
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 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.
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. (For issue ages under 18, no
smoker/nonsmoker adjustment is made until attained age 15. Where unisex cost of
insurance rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker
Mortality Table B applies.) These rates are based on the age and underwriting
class of the 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 and to policies
purchased by employers and employee organizations in connection with employment
related insurance or benefit programs. 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 the insured. In addition, they also vary with the policy
duration. The cost of insurance rate generally increases with the age of the
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 -- $5.00 per month
This charge reimburses us for expenses associated with administration and
maintenance of the policies. The charge is guaranteed never to exceed $5.00. We
do not expect to profit from this charge.
52
Monthly per $1,000
Specified Amount
Charge -- This charge applies for the first 10 years following
the issuance of the policy or an increase in the
Specified Amount. The charge is made per $1,000 of
Specified Amount based on issue age, gender and
Specified Amount. The monthly per $1,000 factors are
shown in Appendix B.
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 80% to
zero over 15 years (11 years for issue ages 76-85)
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
issue age and number of full years since the Policy
was issued (or since the increase in Specified
Amount).
------------------------------------------------------------------
Grading Percentages Percent for Issue Ages Percent for Issue Ages
Policy Years 0-75 76-85
------------------------------------------------------------------
1-3 80% 80%
------------------------------------------------------------------
4 80 70
------------------------------------------------------------------
5 80 60
------------------------------------------------------------------
6 80 50
------------------------------------------------------------------
7 80 40
------------------------------------------------------------------
8 70 30
------------------------------------------------------------------
9 60 20
------------------------------------------------------------------
10 50 10
------------------------------------------------------------------
11 40 0
------------------------------------------------------------------
12 30 0
------------------------------------------------------------------
13 20 0
------------------------------------------------------------------
14 10 0
------------------------------------------------------------------
15+ 0 0
------------------------------------------------------------------
Note: Issue ages for policies issued to Individual Qualified Plans are limited
to ages 18-70
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.
Example: If a male insured age 35 purchases a policy with a Specified Amount of
$100,000, the per $1,000 of initial Specified Amount surrender charge
factor would be $7.25 (Preferred, nonsmoker). The maximum surrender
charge during the first seven policy years would be 80% of (100 x 7.25)
or $580.00.
The maximum surrender charge per $1,000 of initial Specified Amount factor
would be $64.00 based upon the assumptions described above and if the policy
were purchased by a male insured age 85, standard smoker.
53
Effect of Changes in
Specified Amount on the
Surrender Charge -- The surrender charge will increase when a new
coverage segment of 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
applicable 15-year or 11-year period following the
increase. The new surrender charge for the policy
will equal:
(1) The remaining part of the surrender charge for
the original Specified Amount, plus
(2) The surrender charge related to the increase.
Decreases in Specified Amount have no effect on
surrender charges.
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 the following charges will not increase:
(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.
54
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.
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 one of two
alternate tests are met. These 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 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.
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
55
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 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.
56
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 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 591/2 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.
57
Pension and Profit Sharing Plans
Policies purchased by a fund, which is part of a pension or profit sharing
plan (under Sections 401(a) or 403 of the Code), will be treated differently
from that described above. For participants in these plans, the current cost of
insurance for the net amount at risk is treated as a "current fringe benefit."
The current cost of insurance must be included annually in the plan
participant's gross income. This cost (referred to as the "P.S. 58" cost) is
reported to the participant annually. The excess of the death benefit over the
policy Fund Value will not be subject to federal income tax if
(1) the plan participant dies while covered by the plan, and
(2) the policy proceeds are paid to the participant's beneficiary.
However, the policy Fund Value will generally be taxable to the extent it
exceeds the sum of (1) $5,000 plus (2) the participant's cost basis in the
policy. The participant's cost basis will generally include the costs of
insurance previously reported as income to the participant. Special rules may
apply if the participant has borrowed from his or her policy or was an
owner-employee under the plan.
There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased
by a tax-qualified plan.
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 subaccounts available under 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.
58
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.
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, or
(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 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.
59
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.
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
60
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.
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 the 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 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
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.
61
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.
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
62
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.
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 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 multiplied by a death benefit percentage. See "Death
Benefits under the Policy," page 30.
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:
(1) Transfers to the Guaranteed Interest Account may be made at any time
and in any amount.
(2) Transfers from the Guaranteed Interest Account to the subaccounts are
limited to
(a) one in any policy year, and
(b) the period which begins on the policy anniversary and which ends
30 days after the policy anniversary.
63
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 allocated premiums and cash
values to the subaccounts. See "Full Surrender," page 43 and "Partial
Surrender", page 43. 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 the insured 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 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 at the time of the insured's
death 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.
64
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 an 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 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.
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:
(1) 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
(2) 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 a month 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 the 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.
65
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.)
Errors on the Application
If the age or gender of the 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 "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 the 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.
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 a New York corporation organized on September 26, 1969. 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.
66
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.
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.
Current Officers and Directors of the Company 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
Kenneth M. Levine............ Director and Executive Vice President
Richard E. Connors........... Director
Richard Daddario............. Director, Vice President and Controller
Phillip A. Eisenberg......... Director, Vice President and Actuary
Margaret G. Gale............. Director and Vice President
Charles P. Leone............. Director, Vice President and Chief Compliance Officer
Steven G. Orluck............. Director and Vice President
Sam Chiodo................... Vice President
William D. Goodwin........... Vice President
Evelyn L. Peos............... Vice President
Michael Slipowitz............ Vice President
David S. Waldman............. Secretary
David V. Weigel.............. Treasurer
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.
Biographical information for each of the individuals listed in the above
table is set forth below.
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.
67
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 11 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 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.
68
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 24 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 Vice President -- Chief
Counsel, Operations (since 2001). Mr. Waldman has been with MONY for 18 years.
David V. Weigel is Treasurer of the Company. He is Vice President and
Treasurer of MONY (since 2000). 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
69
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.
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 for 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.
70
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-53
Balance sheets as of December 31, 2000 and 1999........... F-54
Statements of income and comprehensive income for the
years ended December 31, 2000, 1999 and 1998............. F-55
Statements of changes in shareholder's equity for the
years ended December 31, 2000, 1999 and 1998............. F-56
Statements of cash flows for the years ended December 31,
2000, 1999 and 1998...................................... F-57
Notes to financial statements............................. F-59
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-53
MONY LIFE INSURANCE COMPANY OF AMERICA
BALANCE SHEETS
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 (Note 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 $6,170.5
======== ========
See accompanying notes to financial statements.
F-54
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998
------ ------ ------
($ 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-55
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) $379.5
==== ====== ====== ====== ======
See accompanying notes to financial statements.
F-56
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
Years Ended December 31, 2000, 1999 and 1998
2000 1999 1998
------- ------- -------
($ 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-57
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-58
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-59
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-60
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
F-61
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
value of such assets exceeds the separate account liabilities. Investments held
in separate accounts and liabilities of the separate 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-62
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 $318.6
====== ====== ======
F-63
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
5. Federal Income Taxes:
The Company files a consolidated federal income tax return with MONY Life
and MONY Life's other subsidiaries. Federal income taxes have been calculated
in accordance with the provisions of the Internal Revenue Code of 1986, as
amended. A summary of the Federal income tax expense (benefit) is presented
below:
2000 1999 1998
------ ----- -----
($ 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) $(19.4)
====== ======
The Company is required to establish a valuation allowance for any portion
of the deferred tax asset that management believes will not be realized. In the
opinion of management, it is more likely than not that it will realize the
benefit of the deferred tax assets and, therefore, no such valuation allowance
has been established.
F-64
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
6. Investment Income, Realized and Unrealized Investment Gains (Losses), and
Other Comprehensive Income:
Net investment income for the years ended December 31, 2000, 1999 and 1998
was derived from the following sources:
2000 1999 1998
----- ----- -----
($ 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-65
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.
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
F-66
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
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 $165.0
====== ======
An analysis of the valuation allowances for 2000, 1999 and 1998 is as
follows:
2000 1999 1998
----- ---- -----
($ 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
===== ==== =====
F-67
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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.
F-68
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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
$6.0 million for last survivor products.
F-69
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
The following table summarizes the effect of reinsurance for the years
indicated:
2000 1999 1998
----- ----- -----
($ 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.
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%).
F-70
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
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%
====== ===== ====== =====
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
F-71
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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.
F-72
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (continued)
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-73
Appendix A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
Attained Age Applicable 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
For Specified Amounts For Specified Amounts
less than $500,000 greater than or equal to $500,000
--------------------- ---------------------------------
Issue Age Factor Per $1,000 Factor Per $1,000
--------- --------------------- ---------------------------------
0-17... $0.07 $0.07
18-36.. 0.08 0.08
37..... 0.09 0.09
38..... 0.09 0.09
39..... 0.10 0.09
40..... 0.10 0.09
41..... 0.10 0.09
42..... 0.11 0.10
43..... 0.11 0.10
44..... 0.12 0.10
45..... 0.12 0.10
46..... 0.12 0.10
47..... 0.13 0.11
48..... 0.13 0.11
49..... 0.14 0.12
50..... 0.14 0.12
51..... 0.14 0.12
52..... 0.15 0.13
53..... 0.15 0.13
54..... 0.16 0.13
55..... 0.16 0.13
56..... 0.16 0.13
57..... 0.17 0.14
58..... 0.17 0.14
59..... 0.18 0.15
60..... 0.18 0.15
61..... 0.18 0.15
62..... 0.19 0.16
63..... 0.19 0.16
64..... 0.20 0.17
65..... 0.20 0.17
66..... 0.20 0.17
67..... 0.21 0.18
68..... 0.21 0.18
69..... 0.22 0.19
70..... 0.22 0.19
71..... 0.22 0.19
72..... 0.23 0.20
73..... 0.23 0.20
74..... 0.24 0.21
75..... 0.24 0.21
76..... 0.24 0.21
77..... 0.25 0.22
78..... 0.25 0.22
79..... 0.26 0.23
80..... 0.26 0.23
81..... 0.26 0.23
82..... 0.27 0.24
83..... 0.27 0.24
84..... 0.28 0.25
85..... 0.28 0.25
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 Death Benefit Option 1.......... $220.50
Female age 45 Preferred Nonsmoker Death Benefit Option 1........ $164.67
Male age 45 Preferred Nonsmoker Death Benefit Option 2.......... $220.50
Female age 45 Preferred Nonsmoker Death Benefit Option 2........ $164.67
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:
Benefit Specified See
Sex Age Smoker Option Amount Page
--- --- ------ ------- --------- ----
Male.. 45 Preferred Non-smoker 1 $200,000 D-5
Male.. 45 Preferred Non-smoker 2 $200,000 D-34
Female 45 Preferred Non-smoker 1 $200,000 D-44
Female 45 Preferred Non-smoker 2 $200,000 D-54
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, page 45) 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, direct expenses and mortality and
expense risk charges on a 0% gross rate of return would result in a net rate of
return of -0.93%, on 6% it would be 5.07%, and on 12% it would be 11.07%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options 1 and 2
and each option is illustrated using current and guaranteed policy cost
D-1
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: 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, Surrenders and 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 fourteen 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 fourteen
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 fourteen 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
fourteen 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 Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
MONY Life Insurance Company of America
Additional Information
This policy has 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 Option Amount Single Premium Annual Premium
--- --- ------------------ ------------- --------- ----------------- -----------------
Male 45 Preferred, Non-Smoker 1 $200,000 $47,777.51 $ 3,934.78
Male 45 Preferred, Non Smoker 2 $200,000 $47,777.51 $12,545.35
Female 45 Preferred, Non-Smoker 1 $200,000 $41,034.35 $ 3,312.58
Female 45 Preferred, Non-Smoker 2 $200,000 $41,034.35 $10,635.54
Values shown on this illustration are based 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 4% of each
premium dollar paid for amounts less than $500,000 for Policy Years 1-10
(1% for Policy Years 11 and later), and 2% for total amounts of $500,000
or more for Policy Years 1-10 (0.5% for Policy Years 11 and later).
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 Variable Universal Life
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 2,650 0 1,816 200,000 0 1,816 200,000 0 1,816 200,000
5 2,650 4,574 6,694 200,000 4,574 6,694 200,000 6,234 8,354 200,000
10 2,650 9,344 10,669 200,000 9,344 10,669 200,000 14,525 15,850 200,000
20 2,650 8,817 8,817 200,000 8,817 8,817 200,000 25,671 25,671 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 22,997 22,997 200,000
@ 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 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
***Policy lapses in policy year 34 based on current charges and a gross
investment return of 0.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Prepared on: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-4
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,650 2,783 0 1,816 200,000 0 1,816 200,000 0 1,816 200,000
2 47 2,650 5,704 1,025 3,145 200,000 1,025 3,145 200,000 1,421 3,541 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,272 4,392 200,000 3,058 5,178 200,000
4 49 2,650 11,993 3,463 5,583 200,000 3,463 5,583 200,000 4,655 6,775 200,000
5 50 2,650 15,375 4,574 6,694 200,000 4,574 6,694 200,000 6,234 8,354 200,000
6 51 2,650 18,926 5,585 7,705 200,000 5,585 7,705 200,000 7,797 9,917 200,000
7 52 2,650 22,655 6,498 8,618 200,000 6,498 8,618 200,000 9,343 11,463 200,000
8 53 2,650 26,570 7,579 9,434 200,000 7,579 9,434 200,000 11,115 12,970 200,000
9 54 2,650 30,681 8,520 10,110 200,000 8,520 10,110 200,000 12,850 14,440 200,000
10 55 2,650 34,998 9,344 10,669 200,000 9,344 10,669 200,000 14,525 15,850 200,000
11 56 2,650 39,530 10,375 11,435 200,000 10,375 11,435 200,000 16,487 17,547 200,000
12 57 2,650 44,289 11,247 12,042 200,000 11,247 12,042 200,000 18,346 19,141 200,000
13 58 2,650 49,286 11,961 12,491 200,000 11,961 12,491 200,000 20,084 20,614 200,000
14 59 2,650 54,533 12,474 12,739 200,000 12,474 12,739 200,000 21,662 21,927 200,000
15 60 2,650 60,042 12,787 12,787 200,000 12,787 12,787 200,000 23,040 23,040 200,000
16 61 2,650 65,827 12,591 12,591 200,000 12,591 12,591 200,000 23,959 23,959 200,000
17 62 2,650 71,901 12,150 12,150 200,000 12,150 12,150 200,000 24,685 24,685 200,000
18 63 2,650 78,278 11,395 11,395 200,000 11,395 11,395 200,000 25,201 25,201 200,000
19 64 2,650 84,975 10,301 10,301 200,000 10,301 10,301 200,000 25,529 25,529 200,000
20 65 2,650 92,006 8,817 8,817 200,000 8,817 8,817 200,000 25,671 25,671 200,000
21 66 2,650 99,389 6,887 6,887 200,000 6,887 6,887 200,000 25,627 25,627 200,000
22 67 2,650 107,141 4,476 4,476 200,000 4,476 4,476 200,000 25,335 25,335 200,000
23 68 2,650 115,280 1,520 1,520 200,000 1,520 1,520 200,000 24,794 24,794 200,000
24 69 2,650 123,827 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 24,023 24,023 200,000
25 70 2,650 132,801 22,997 22,997 200,000
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-5
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,650 142,223 21,670 21,670 200,000
27 72 2,650 152,117 20,100 20,100 200,000
28 73 2,650 162,505 18,173 18,173 200,000
29 74 2,650 173,413 15,812 15,812 200,000
30 75 2,650 184,866 12,957 12,957 200,000
31 76 2,650 196,892 9,563 9,563 200,000
32 77 2,650 209,519 5,558 5,558 200,000
33 78 2,650 222,777 833 833 200,000
34 79 0 233,916 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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-6
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,650 0 1,816 200,000 0 1,943 200,000 0 1,943 200,000
5 2,650 4,574 6,694 200,000 6,149 8,269 200,000 8,007 10,127 200,000
10 2,650 9,344 10,669 200,000 14,749 16,074 200,000 21,183 22,508 200,000
20 2,650 8,817 8,817 200,000 29,143 29,143 200,000 54,926 54,926 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 24,494 24,494 200,000 71,746 71,746 200,000
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 121,608 121,608 200,000
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 130,895 130,895 200,000
* Policy lapses in policy year 24 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 6.00%.
***Policy continues to age 100 based on current charges and a gross investment
return of 6.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-7
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,650 2,783 0 1,816 200,000 0 1,943 200,000 0 1,943 200,000
2 47 2,650 5,704 1,025 3,145 200,000 1,379 3,499 200,000 1,788 3,908 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,943 5,063 200,000 3,778 5,898 200,000
4 49 2,650 11,993 3,463 5,583 200,000 4,540 6,660 200,000 5,842 7,962 200,000
5 50 2,650 15,375 4,574 6,694 200,000 6,149 8,269 200,000 8,007 10,127 200,000
6 51 2,650 18,926 5,585 7,705 200,000 7,748 9,868 200,000 10,280 12,400 200,000
7 52 2,650 22,655 6,498 8,618 200,000 9,338 11,458 200,000 12,664 14,784 200,000
8 53 2,650 26,570 7,579 9,434 200,000 11,186 13,041 200,000 15,409 17,264 200,000
9 54 2,650 30,681 8,520 10,110 200,000 12,983 14,573 200,000 18,253 19,843 200,000
10 55 2,650 34,998 9,344 10,669 200,000 14,749 16,074 200,000 21,183 22,508 200,000
11 56 2,650 39,530 10,375 11,435 200,000 16,822 17,882 200,000 24,559 25,619 200,000
12 57 2,650 44,289 11,247 12,042 200,000 18,841 19,636 200,000 28,008 28,803 200,000
13 58 2,650 49,286 11,961 12,491 200,000 20,805 21,335 200,000 31,515 32,045 200,000
14 59 2,650 54,533 12,474 12,739 200,000 22,672 22,937 200,000 35,046 35,311 200,000
15 60 2,650 60,042 12,787 12,787 200,000 24,438 24,438 200,000 38,569 38,569 200,000
16 61 2,650 65,827 12,591 12,591 200,000 25,794 25,794 200,000 41,825 41,825 200,000
17 62 2,650 71,901 12,150 12,150 200,000 26,999 26,999 200,000 45,087 45,087 200,000
18 63 2,650 78,278 11,395 11,395 200,000 27,985 27,985 200,000 48,343 48,343 200,000
19 64 2,650 84,975 10,301 10,301 200,000 28,718 28,718 200,000 51,620 51,620 200,000
20 65 2,650 92,006 8,817 8,817 200,000 29,143 29,143 200,000 54,926 54,926 200,000
21 66 2,650 99,389 6,887 6,887 200,000 29,200 29,200 200,000 58,270 58,270 200,000
22 67 2,650 107,141 4,476 4,476 200,000 28,841 28,841 200,000 61,611 61,611 200,000
23 68 2,650 115,280 1,520 1,520 200,000 27,992 27,992 200,000 64,958 64,958 200,000
24 69 2,650 123,827 LAPSED LAPSED LAPSED 26,589 26,589 200,000 68,338 68,338 200,000
25 70 2,650 132,801 24,494 24,494 200,000 71,746 71,746 200,000
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-8
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,650 142,223 21,572 21,572 200,000 75,164 75,164 200,000
27 72 2,650 152,117 17,639 17,639 200,000 78,649 78,649 200,000
28 73 2,650 162,505 12,431 12,431 200,000 82,142 82,142 200,000
29 74 2,650 173,413 5,657 5,657 200,000 85,616 85,616 200,000
30 75 2,650 184,866 LAPSED LAPSED LAPSED 89,057 89,057 200,000
31 76 2,650 196,892 92,467 92,467 200,000
32 77 2,650 209,519 95,838 95,838 200,000
33 78 2,650 222,777 99,147 99,147 200,000
34 79 2,650 236,699 102,389 102,389 200,000
35 80 2,650 251,316 105,557 105,557 200,000
36 81 2,650 266,665 108,954 108,954 200,000
37 82 2,650 282,780 112,300 112,300 200,000
38 83 2,650 299,702 115,596 115,596 200,000
39 84 2,650 317,469 118,715 118,715 200,000
40 85 2,650 336,125 121,608 121,608 200,000
41 86 2,650 355,714 124,243 124,243 200,000
42 87 2,650 376,282 126,566 126,566 200,000
43 88 2,650 397,879 128,467 128,467 200,000
44 89 2,650 420,555 129,943 129,943 200,000
45 90 2,650 444,366 130,895 130,895 200,000
46 91 2,650 469,366 131,395 131,395 200,000
47 92 2,650 495,617 131,787 131,787 200,000
48 93 2,650 523,181 131,432 131,432 200,000
49 94 2,650 552,122 130,245 130,245 200,000
50 95 2,650 582,511 127,997 127,997 200,000
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
. TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-9
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 96 2,650 614,419 125,014 125,014 200,000
52 97 2,650 647,922 120,684 120,684 200,000
53 98 2,650 683,101 113,693 113,693 200,000
54 99 2,650 720,038 103,506 103,506 200,000
55 100 2,650 758,823 88,154 88,154 200,000
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, INVETCO 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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-10
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,650 0 1,816 200,000 0 2,070 200,000 0 2,070 200,000
5 2,650 4,574 6,694 200,000 8,020 10,140 200,000 10,096 12,216 200,000
10 2,650 9,344 10,669 200,000 22,766 24,091 200,000 30,810 32,135 200,000
20 2,650 8,817 8,817 200,000 79,399 79,399 200,000 120,677 120,677 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 131,875 131,875 200,000 212,913 212,913 246,979
@ Age 85 2,650 LAPSED LAPSED LAPSED 639,243 639,243 671,205 1,033,854 1,033,854 1,085,547
@ Age 90 2,650 LAPSED LAPSED LAPSED 1,029,227 1,029,227 1,080,688 1,697,822 1,697,822 1,782,713
* Policy lapses in policy year 24 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 I 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 told
Acknowledgement me that they are not guaranteed.
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form
#B2-98
D-11
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,650 2,783 0 1,816 200,000 0 2,070 200,000 0 2,070 200,000
2 47 2,650 5,704 1,025 3,145 200,000 1,750 3,870 200,000 2,171 4,291 200,000
3 48 2,650 8,772 2,272 4,392 200,000 3,676 5,796 200,000 4,559 6,679 200,000
4 49 2,650 11,993 3,463 5,583 200,000 5,767 7,887 200,000 7,184 9,304 200,000
5 50 2,650 15,375 4,574 6,694 200,000 8,020 10,140 200,000 10,096 12,216 200,000
6 51 2,650 18,926 5,585 7,705 200,000 10,430 12,550 200,000 13,325 15,445 200,000
7 52 2,650 22,655 6,498 8,618 200,000 13,018 15,138 200,000 16,907 19,027 200,000
8 53 2,650 26,570 7,579 9,434 200,000 16,071 17,926 200,000 21,123 22,978 200,000
9 54 2,650 30,681 8,520 10,110 200,000 19,304 20,894 200,000 25,749 27,339 200,000
10 55 2,650 34,998 9,344 10,669 200,000 22,766 24,091 200,000 30,810 32,135 200,000
11 56 2,650 39,530 10,375 11,435 200,000 26,836 27,896 200,000 36,728 37,788 200,000
12 57 2,650 44,289 11,247 12,042 200,000 31,197 31,992 200,000 43,188 43,983 200,000
13 58 2,650 49,286 11,961 12,491 200,000 35,892 36,422 200,000 50,238 50,768 200,000
14 59 2,650 54,533 12,474 12,739 200,000 40,926 41,191 200,000 57,916 58,181 200,000
15 60 2,650 60,042 12,787 12,787 200,000 46,351 46,351 200,000 66,271 66,271 200,000
16 61 2,650 65,827 12,591 12,591 200,000 51,922 51,922 200,000 75,132 75,132 200,000
17 62 2,650 71,901 12,150 12,150 200,000 57,971 57,971 200,000 84,874 84,874 200,000
18 63 2,650 78,278 11,395 11,395 200,000 64,521 64,521 200,000 95,607 95,607 200,000
19 64 2,650 84,975 10,301 10,301 200,000 71,641 71,641 200,000 107,487 107,487 200,000
20 65 2,650 92,006 8,817 8,817 200,000 79,399 79,399 200,000 120,677 120,677 200,000
21 66 2,650 99,389 6,887 6,887 200,000 87,883 87,883 200,000 135,364 135,364 200,000
22 67 2,650 107,141 4,476 4,476 200,000 97,215 97,215 200,000 151,741 151,741 200,000
23 68 2,650 115,280 1,520 1,520 200,000 107,534 107,534 200,000 170,065 170,065 200,677
24 69 2,650 123,827 LAPSED LAPSED LAPSED 119,022 119,022 200,000 190,438 190,438 222,813
25 70 2,650 132,801 131,875 131,875 200,000 212,913 212,913 246,979
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-12
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,650 142,223 146,355 146,355 200,000 237,702 237,702 273,358
27 72 2,650 152,117 162,794 162,794 200,000 265,122 265,122 299,588
28 73 2,650 162,505 181,616 181,616 201,593 295,454 295,454 327,954
29 74 2,650 173,413 202,853 202,853 221,110 329,031 329,031 358,644
30 75 2,650 184,866 226,398 226,398 242,246 366,239 366,239 391,875
31 76 2,650 196,892 252,573 252,573 265,201 407,522 407,522 427,898
32 77 2,650 209,519 281,367 281,367 295,436 453,091 453,091 475,745
33 78 2,650 222,777 313,030 313,030 328,681 503,374 503,374 528,542
34 79 2,650 236,699 347,825 347,825 365,216 558,844 558,844 586,786
35 80 2,650 251,316 386,035 386,035 405,337 620,019 620,019 651,020
36 81 2,650 266,665 427,960 427,960 449,358 687,570 687,570 721,948
37 82 2,650 282,780 473,912 473,912 497,608 762,038 762,038 800,140
38 83 2,650 299,702 524,215 524,215 550,426 844,108 844,108 886,313
39 84 2,650 317,469 579,205 579,205 608,165 934,458 934,458 981,181
40 85 2,650 336,125 639,243 639,243 671,205 1,033,854 1,033,854 1,085,547
41 86 2,650 355,714 704,706 704,706 739,941 1,143,134 1,143,134 1,200,291
42 87 2,650 376,282 775,997 775,997 814,797 1,263,186 1,263,186 1,326,346
43 88 2,650 397,879 853,549 853,549 896,226 1,394,926 1,394,926 1,464,673
44 89 2,650 420,555 937,805 937,805 984,696 1,539,439 1,539,439 1,616,411
45 90 2,650 444,366 1,029,227 1,029,227 1,080,688 1,697,822 1,697,822 1,782,713
46 91 2,650 469,366 1,128,263 1,128,263 1,184,677 1,871,483 1,871,483 1,965,057
47 92 2,650 495,617 1,238,814 1,238,814 1,288,367 2,064,901 2,064,901 2,147,497
48 93 2,650 523,181 1,362,896 1,362,896 1,403,783 2,280,144 2,280,144 2,348,548
49 94 2,650 552,122 1,502,992 1,502,992 1,533,052 2,520,492 2,520,492 2,570,902
50 95 2,650 582,511 1,662,330 1,662,330 1,678,953 2,789,728 2,789,728 2,817,626
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-13
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 96 2,650 614,419 1,837,517 1,837,517 1,855,892 3,087,373 3,087,373 3,118,247
52 97 2,650 647,922 2,029,375 2,029,375 2,049,669 3,416,307 3,416,307 3,450,470
53 98 2,650 683,101 2,237,516 2,237,516 2,259,891 3,779,555 3,779,555 3,817,350
54 99 2,650 720,038 2,463,687 2,463,687 2,488,324 4,180,765 4,180,765 4,222,572
55 100 2,650 758,823 2,712,445 2,712,445 2,739,570 4,623,669 4,623,669 4,669,906
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, INVETCO 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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-14
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,650 0 1,813 201,813 0 1,813 201,813 0 1,813 201,813
5 2,650 4,477 6,597 206,597 4,477 6,597 206,597 6,180 8,300 208,300
10 2,650 8,941 10,266 210,266 8,941 10,266 210,266 14,321 15,646 215,646
20 2,650 6,823 6,823 206,823 6,823 6,823 206,823 23,889 23,889 223,889
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 19,377 19,377 219,377
@ 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 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
***Policy lapses in policy year 32 based on current charges and a gross
investment return of 0.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-15
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,650 2,783 0 1,813 201,813 0 1,813 201,813 0 1,813 201,813
2 47 2,650 5,704 1,008 3,128 203,128 1,008 3,128 203,128 1,412 3,532 203,532
3 48 2,650 8,772 2,235 4,355 204,355 2,235 4,355 204,355 3,038 5,158 205,158
4 49 2,650 11,993 3,399 5,519 205,519 3,399 5,519 205,519 4,619 6,739 206,739
5 50 2,650 15,375 4,477 6,597 206,597 4,477 6,597 206,597 6,180 8,300 208,300
6 51 2,650 18,926 5,447 7,567 207,567 5,447 7,567 207,567 7,721 9,841 209,841
7 52 2,650 22,655 6,309 8,429 208,429 6,309 8,429 208,429 9,242 11,362 211,362
8 53 2,650 26,570 7,330 9,185 209,185 7,330 9,185 209,185 10,986 12,841 212,841
9 54 2,650 30,681 8,198 9,788 209,788 8,198 9,788 209,788 12,686 14,276 214,276
10 55 2,650 34,998 8,941 10,266 210,266 8,941 10,266 210,266 14,321 15,646 215,646
11 56 2,650 39,530 9,876 10,936 210,936 9,876 10,936 210,936 16,232 17,292 217,292
12 57 2,650 44,289 10,636 11,431 211,431 10,636 11,431 211,431 18,027 18,822 218,822
13 58 2,650 49,286 11,223 11,753 211,753 11,223 11,753 211,753 19,683 20,213 220,213
14 59 2,650 54,533 11,593 11,858 211,858 11,593 11,858 211,858 21,156 21,421 221,421
15 60 2,650 60,042 11,748 11,748 211,748 11,748 11,748 211,748 22,400 22,400 222,400
16 61 2,650 65,827 11,378 11,378 211,378 11,378 11,378 211,378 23,152 23,152 223,152
17 62 2,650 71,901 10,751 10,751 210,751 10,751 10,751 210,751 23,682 23,682 223,682
18 63 2,650 78,278 9,800 9,800 209,800 9,800 9,800 209,800 23,967 23,967 223,967
19 64 2,650 84,975 8,505 8,505 208,505 8,505 8,505 208,505 24,035 24,035 224,035
20 65 2,650 92,006 6,823 6,823 206,823 6,823 6,823 206,823 23,889 23,889 223,889
21 66 2,650 99,389 4,711 4,711 204,711 4,711 4,711 204,711 23,530 23,530 223,530
22 67 2,650 107,141 2,151 2,151 202,151 2,151 2,151 202,151 22,892 22,892 222,892
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 21,977 21,977 221,977
24 69 2,650 123,827 20,812 20,812 220,812
25 70 2,650 132,801 19,377 19,377 219,377
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-16
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,650 142,223 17,628 17,628 217,628
27 72 2,650 152,117 15,641 15,641 215,641
28 73 2,650 162,505 13,298 13,298 213,298
29 74 2,650 173,413 10,534 10,534 210,534
30 75 2,650 184,866 7,307 7,307 207,307
31 76 2,650 196,892 3,598 3,598 203,598
32 77 0 206,736 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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-17
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,650 0 1,813 201,813 0 1,940 201,940 0 1,940 201,940
5 2,650 4,477 6,597 206,597 6,028 8,148 208,148 7,940 10,060 210,060
10 2,650 8,941 10,266 210,266 14,124 15,449 215,449 20,872 22,197 222,197
20 2,650 6,823 6,823 206,823 23,949 23,949 223,949 50,960 50,960 250,960
@ Age 70 2,650 LAPSED LAPSED LAPSED 13,431 13,431 213,431 61,185 61,185 261,185
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 22,950 22,950 222,950
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 6.00%.
***Policy lapses in policy year 42 based on current charges and a gross
investment return of 6.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-18
LIFE INSURANCE ILLUSTRATION
[LOGO] MONY
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,650 2,783 0 1,813 201,813 0 1,940 201,940 0 1,940 201,940
2 47 2,650 5,704 1,008 3,128 203,128 1,361 3,481 203,481 1,778 3,898 203,898
3 48 2,650 8,772 2,235 4,355 204,355 2,901 5,021 205,021 3,754 5,874 205,874
4 49 2,650 11,993 3,399 5,519 205,519 4,464 6,584 206,584 5,799 7,919 207,919
5 50 2,650 15,375 4,477 6,597 206,597 6,028 8,148 208,148 7,940 10,060 210,060
6 51 2,650 18,926 5,447 7,567 207,567 7,567 9,687 209,687 10,181 12,301 212,301
7 52 2,650 22,655 6,309 8,429 208,429 9,080 11,200 211,200 12,528 14,648 214,648
8 53 2,650 26,570 7,330 9,185 209,185 10,831 12,686 212,686 15,226 17,081 217,081
9 54 2,650 30,681 8,198 9,788 209,788 12,506 14,096 214,096 18,014 19,604 219,604
10 55 2,650 34,998 8,941 10,266 210,266 14,124 15,449 215,449 20,872 22,197 222,197
11 56 2,650 39,530 9,876 10,936 210,936 16,012 17,072 217,072 24,156 25,216 225,216
12 57 2,650 44,289 10,636 11,431 211,431 17,806 18,601 218,601 27,485 28,280 228,280
13 58 2,650 49,286 11,223 11,753 211,753 19,500 20,030 220,030 30,835 31,365 231,365
14 59 2,650 54,533 11,593 11,858 211,858 21,040 21,305 221,305 34,159 34,424 234,424
15 60 2,650 60,042 11,748 11,748 211,748 22,420 22,420 222,420 37,406 37,406 237,406
16 61 2,650 65,827 11,378 11,378 211,378 23,318 23,318 223,318 40,308 40,308 240,308
17 62 2,650 71,901 10,751 10,751 210,751 23,989 23,989 223,989 43,126 43,126 243,126
18 63 2,650 78,278 9,800 9,800 209,800 24,348 24,348 224,348 45,832 45,832 245,832
19 64 2,650 84,975 8,505 8,505 208,505 24,357 24,357 224,357 48,444 48,444 248,444
20 65 2,650 92,006 6,823 6,823 206,823 23,949 23,949 223,949 50,960 50,960 250,960
21 66 2,650 99,389 4,711 4,711 204,711 23,056 23,056 223,056 53,373 53,373 253,373
22 67 2,650 107,141 2,151 2,151 202,151 21,632 21,632 221,632 55,605 55,605 255,605
23 68 2,650 115,280 LAPSED LAPSED LAPSED 19,601 19,601 219,601 57,650 57,650 257,650
24 69 2,650 123,827 16,910 16,910 216,910 59,520 59,520 259,520
25 70 2,650 132,801 13,431 13,431 213,431 61,185 61,185 261,185
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-19
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,650 142,223 9,052 9,052 209,052 62,586 62,586 262,586
27 72 2,650 152,117 3,634 3,634 203,634 63,783 63,783 263,783
28 73 2,650 162,505 LAPSED LAPSED LAPSED 64,645 64,645 264,645
29 74 2,650 173,413 65,083 65,083 265,083
30 75 2,650 184,866 65,026 65,026 265,026
31 76 2,650 196,892 64,428 64,428 264,428
32 77 2,650 209,519 63,215 63,215 263,215
33 78 2,650 222,777 61,282 61,282 261,282
34 79 2,650 236,699 58,549 58,549 258,549
35 80 2,650 251,316 54,927 54,927 254,927
36 81 2,650 266,665 50,987 50,987 250,987
37 82 2,650 282,780 46,029 46,029 246,029
38 83 2,650 299,702 39,954 39,954 239,954
39 84 2,650 317,469 32,343 32,343 232,343
40 85 2,650 336,125 22,950 22,950 222,950
41 86 2,650 355,714 11,570 11,570 211,570
42 87 0 373,500 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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-20
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,650 0 1,813 201,813 0 2,067 202,067 0 2,067 202,067
5 2,650 4,477 6,597 206,597 7,869 9,989 209,989 10,012 12,132 212,132
10 2,650 8,941 10,266 210,266 21,802 23,127 223,127 30,339 31,664 231,664
20 2,650 6,823 6,823 206,823 66,243 66,243 266,243 111,654 111,654 311,654
@ Age 70 2,650 LAPSED LAPSED LAPSED 91,493 91,493 291,493 182,715 182,715 382,715
@ Age 85 2,650 LAPSED LAPSED LAPSED 18,030 18,030 218,030 699,582 699,582 899,582
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 1,063,174 1,063,174 1,263,174
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 41 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 I 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 me that they are not guaranteed.
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 non-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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-21
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,650 2,783 0 1,813 201,813 0 2,067 202,067 0 2,067 202,067
2 47 2,650 5,704 1,008 3,128 203,128 1,730 3,850 203,850 2,160 4,280 204,280
3 48 2,650 8,772 2,235 4,355 204,355 3,627 5,747 205,747 4,532 6,652 206,652
4 49 2,650 11,993 3,399 5,519 205,519 5,677 7,797 207,797 7,133 9,253 209,253
5 50 2,650 15,375 4,477 6,597 206,597 7,869 9,989 209,989 10,012 12,132 212,132
6 51 2,650 18,926 5,447 7,567 207,567 10,195 12,315 212,315 13,199 15,319 215,319
7 52 2,650 22,655 6,309 8,429 208,429 12,668 14,788 214,788 16,726 18,846 218,846
8 53 2,650 26,570 7,330 9,185 209,185 15,570 17,425 217,425 20,869 22,724 222,724
9 54 2,650 30,681 8,198 9,788 209,788 18,601 20,191 220,191 25,401 26,991 226,991
10 55 2,650 34,998 8,941 10,266 210,266 21,802 23,127 223,127 30,339 31,664 231,664
11 56 2,650 39,530 9,876 10,936 210,936 25,532 26,592 226,592 36,093 37,153 237,153
12 57 2,650 44,289 10,636 11,431 211,431 29,455 30,250 230,250 42,332 43,127 243,127
13 58 2,650 49,286 11,223 11,753 211,753 33,593 34,123 234,123 49,082 49,612 249,612
14 59 2,650 54,533 11,593 11,858 211,858 37,917 38,182 238,182 56,350 56,615 256,615
15 60 2,650 60,042 11,748 11,748 211,748 42,447 42,447 242,447 64,137 64,137 264,137
16 61 2,650 65,827 11,378 11,378 211,378 46,891 46,891 246,891 72,237 72,237 272,237
17 62 2,650 71,901 10,751 10,751 210,751 51,532 51,532 251,532 80,975 80,975 280,975
18 63 2,650 78,278 9,800 9,800 209,800 56,315 56,315 256,315 90,394 90,394 290,394
19 64 2,650 84,975 8,505 8,505 208,505 61,231 61,231 261,231 100,593 100,593 300,593
20 65 2,650 92,006 6,823 6,823 206,823 66,243 66,243 266,243 111,654 111,654 311,654
21 66 2,650 99,389 4,711 4,711 204,711 71,311 71,311 271,311 123,671 123,671 323,671
22 67 2,650 107,141 2,151 2,151 202,151 76,416 76,416 276,416 136,669 136,669 336,669
23 68 2,650 115,280 LAPSED LAPSED LAPSED 81,512 81,512 281,512 150,754 150,754 350,754
24 69 2,650 123,827 86,573 86,573 286,573 166,067 166,067 366,067
25 70 2,650 132,801 91,493 91,493 291,493 182,715 182,715 382,715
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-22
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,650 142,223 96,183 96,183 296,183 200,790 200,790 400,790
27 72 2,650 152,117 100,517 100,517 300,517 220,520 220,520 420,520
28 73 2,650 162,505 104,305 104,305 304,305 241,956 241,956 441,956
29 74 2,650 173,413 107,363 107,363 307,363 265,207 265,207 465,207
30 75 2,650 184,866 109,487 109,487 309,487 290,415 290,415 490,415
31 76 2,650 196,892 110,477 110,477 310,477 317,766 317,766 517,766
32 77 2,650 209,519 110,109 110,109 310,109 347,439 347,439 547,439
33 78 2,650 222,777 108,188 108,188 308,188 379,608 379,608 579,608
34 79 2,650 236,699 104,448 104,448 304,448 414,490 414,490 614,490
35 80 2,650 251,316 98,540 98,540 298,540 452,327 452,327 652,327
36 81 2,650 266,665 90,056 90,056 290,056 494,062 494,062 694,062
37 82 2,650 282,780 78,441 78,441 278,441 539,411 539,411 739,411
38 83 2,650 299,702 63,055 63,055 263,055 588,714 588,714 788,714
39 84 2,650 317,469 43,164 43,164 243,164 642,018 642,018 842,018
40 85 2,650 336,125 18,030 18,030 218,030 699,582 699,582 899,582
41 86 2,650 355,714 LAPSED LAPSED LAPSED 761,738 761,738 961,738
42 87 2,650 376,282 828,809 828,809 1,028,809
43 88 2,650 397,879 901,028 901,028 1,101,028
44 89 2,650 420,555 978,999 978,999 1,178,999
45 90 2,650 444,366 1,063,174 1,063,174 1,263,174
46 91 2,650 469,366 1,154,621 1,154,621 1,354,621
47 92 2,650 495,617 1,255,311 1,255,311 1,455,311
48 93 2,650 523,181 1,364,464 1,364,464 1,564,464
49 94 2,650 552,122 1,483,194 1,483,194 1,683,194
50 95 2,650 582,511 1,612,466 1,612,466 1,812,466
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 Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-23
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 96 2,650 614,419 1,755,016 1,755,016 1,955,016
52 97 2,650 647,922 1,911,224 1,911,224 2,111,224
53 98 2,650 683,101 2,080,472 2,080,472 2,280,472
54 99 2,650 720,038 2,265,086 2,265,086 2,465,086
55 100 2,650 758,823 2,465,386 2,465,386 2,665,386
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, INVETCO 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 Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,650.00 . GPT Version 01.2002
Initial Modal Premium: $2,650.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-24
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,050 0 1,338 200,000 0 1,338 200,000 0 1,338 200,000
5 2,050 2,834 4,474 200,000 2,834 4,474 200,000 4,620 6,260 200,000
10 2,050 5,864 6,889 200,000 5,864 6,889 200,000 10,679 11,704 200,000
20 2,050 7,550 7,550 200,000 7,550 7,550 200,000 19,765 19,765 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 19,763 19,763 200,000
@ 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 25 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 25 based on guaranteed charges and a gross
investment return of 0.00%.
***Policy lapses in policy year 35 based on current charges and a gross
investment return of 0.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-25
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,050 2,153 0 1,338 200,000 0 1,338 200,000 0 1,338 200,000
2 47 2,050 4,413 552 2,192 200,000 552 2,192 200,000 973 2,613 200,000
3 48 2,050 6,786 1,374 3,014 200,000 1,374 3,014 200,000 2,211 3,851 200,000
4 49 2,050 9,278 2,142 3,782 200,000 2,142 3,782 200,000 3,434 5,074 200,000
5 50 2,050 11,894 2,834 4,474 200,000 2,834 4,474 200,000 4,620 6,260 200,000
6 51 2,050 14,641 3,473 5,113 200,000 3,473 5,113 200,000 5,793 7,433 200,000
7 52 2,050 17,526 4,038 5,678 200,000 4,038 5,678 200,000 6,930 8,570 200,000
8 53 2,050 20,554 4,734 6,169 200,000 4,734 6,169 200,000 8,236 9,671 200,000
9 54 2,050 23,735 5,335 6,565 200,000 5,335 6,565 200,000 9,486 10,716 200,000
10 55 2,050 27,074 5,864 6,889 200,000 5,864 6,889 200,000 10,679 11,704 200,000
11 56 2,050 30,580 6,648 7,468 200,000 6,648 7,468 200,000 12,187 13,007 200,000
12 57 2,050 34,262 7,337 7,952 200,000 7,337 7,952 200,000 13,637 14,252 200,000
13 58 2,050 38,127 7,932 8,342 200,000 7,932 8,342 200,000 15,009 15,419 200,000
14 59 2,050 42,186 8,434 8,639 200,000 8,434 8,639 200,000 16,195 16,400 200,000
15 60 2,050 46,448 8,844 8,844 200,000 8,844 8,844 200,000 17,199 17,199 200,000
16 61 2,050 50,923 8,934 8,934 200,000 8,934 8,934 200,000 17,905 17,905 200,000
17 62 2,050 55,621 8,889 8,889 200,000 8,889 8,889 200,000 18,520 18,520 200,000
18 63 2,050 60,555 8,662 8,662 200,000 8,662 8,662 200,000 19,024 19,024 200,000
19 64 2,050 65,735 8,231 8,231 200,000 8,231 8,231 200,000 19,438 19,438 200,000
20 65 2,050 71,174 7,550 7,550 200,000 7,550 7,550 200,000 19,765 19,765 200,000
21 66 2,050 76,886 6,595 6,595 200,000 6,595 6,595 200,000 20,005 20,005 200,000
22 67 2,050 82,882 5,360 5,360 200,000 5,360 5,360 200,000 20,136 20,136 200,000
23 68 2,050 89,179 3,844 3,844 200,000 3,844 3,844 200,000 20,140 20,140 200,000
24 69 2,050 95,791 2,016 2,016 200,000 2,016 2,016 200,000 20,015 20,015 200,000
25 70 2,050 102,733 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 19,763 19,763 200,000
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-26
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,050 110,022 19,319 19,319 200,000
27 72 2,050 117,675 18,704 18,704 200,000
28 73 2,050 125,712 17,916 17,916 200,000
29 74 2,050 134,150 16,781 16,781 200,000
30 75 2,050 143,010 15,271 15,271 200,000
31 76 2,050 152,313 13,379 13,379 200,000
32 77 2,050 162,081 10,871 10,871 200,000
33 78 2,050 172,337 7,746 7,746 200,000
34 79 2,050 183,107 3,978 3,978 200,000
35 80 0 192,262 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 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-27
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,050 0 1,338 200,000 0 1,434 200,000 0 1,434 200,000
5 2,050 2,834 4,474 200,000 3,948 5,588 200,000 5,950 7,590 200,000
10 2,050 5,864 6,889 200,000 9,545 10,570 200,000 15,653 16,678 200,000
20 2,050 7,550 7,550 200,000 21,166 21,166 200,000 41,341 41,341 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 20,387 20,387 200,000 55,274 55,274 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 84,576 84,576 200,000
@ Age 90 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 61,244 61,244 200,000
* Policylapses in policy year 25 based on guaranteed charges and a gross
investment return of 0.00%.
** Policylapses in policy year 32 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policylapses in policy year 50 based on current charges and a gross
investment return of 6.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Represemtative Date
Age 45 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-28
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,050 2,153 0 1,338 200,000 0 1,434 200,000 0 1,434 200,000
2 47 2,050 4,413 552 2,192 200,000 814 2,454 200,000 1,249 2,889 200,000
3 48 2,050 6,786 1,374 3,014 200,000 1,861 3,501 200,000 2,750 4,390 200,000
4 49 2,050 9,278 2,142 3,782 200,000 2,913 4,553 200,000 4,324 5,964 200,000
5 50 2,050 11,894 2,834 4,474 200,000 3,948 5,588 200,000 5,950 7,590 200,000
6 51 2,050 14,641 3,473 5,113 200,000 4,988 6,628 200,000 7,655 9,295 200,000
7 52 2,050 17,526 4,038 5,678 200,000 6,011 7,651 200,000 9,420 11,060 200,000
8 53 2,050 20,554 4,734 6,169 200,000 7,222 8,657 200,000 11,453 12,888 200,000
9 54 2,050 23,735 5,335 6,565 200,000 8,393 9,623 200,000 13,529 14,759 200,000
10 55 2,050 27,074 5,864 6,889 200,000 9,545 10,570 200,000 15,653 16,678 200,000
11 56 2,050 30,580 6,648 7,468 200,000 11,015 11,835 200,000 18,209 19,029 200,000
12 57 2,050 34,262 7,337 7,952 200,000 12,462 13,077 200,000 20,837 21,452 200,000
13 58 2,050 38,127 7,932 8,342 200,000 13,885 14,295 200,000 23,520 23,930 200,000
14 59 2,050 42,186 8,434 8,639 200,000 15,284 15,489 200,000 26,157 26,362 200,000
15 60 2,050 46,448 8,844 8,844 200,000 16,660 16,660 200,000 28,750 28,750 200,000
16 61 2,050 50,923 8,934 8,934 200,000 17,783 17,783 200,000 31,179 31,179 200,000
17 62 2,050 55,621 8,889 8,889 200,000 18,837 18,837 200,000 33,654 33,654 200,000
18 63 2,050 60,555 8,662 8,662 200,000 19,774 19,774 200,000 36,159 36,159 200,000
19 64 2,050 65,735 8,231 8,231 200,000 20,567 20,567 200,000 38,720 38,720 200,000
20 65 2,050 71,174 7,550 7,550 200,000 21,166 21,166 200,000 41,341 41,341 200,000
21 66 2,050 76,886 6,595 6,595 200,000 21,538 21,538 200,000 44,029 44,029 200,000
22 67 2,050 82,882 5,360 5,360 200,000 21,672 21,672 200,000 46,771 46,771 200,000
23 68 2,050 89,179 3,844 3,844 200,000 21,551 21,551 200,000 49,555 49,555 200,000
24 69 2,050 95,791 2,016 2,016 200,000 21,137 21,137 200,000 52,387 52,387 200,000
25 70 2,050 102,733 LAPSED LAPSED LAPSED 20,387 20,387 200,000 55,274 55,274 200,000
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 Female Non-Smoker Preferred Prepared On 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-29
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,050 110,022 19,210 19,210 200,000 58,172 58,172 200,000
27 72 2,050 117,675 17,501 17,501 200,000 61,104 61,104 200,000
28 73 2,050 125,712 15,102 15,102 200,000 64,079 64,079 200,000
29 74 2,050 134,150 11,806 11,806 200,000 66,973 66,973 200,000
30 75 2,050 143,010 7,444 7,444 200,000 69,777 69,777 200,000
31 76 2,050 152,313 1,744 1,744 200,000 72,496 72,496 200,000
32 77 2,050 162,081 LAPSED LAPSED LAPSED 74,981 74,981 200,000
33 78 2,050 172,337 77,249 77,249 200,000
34 79 2,050 183,107 79,296 79,296 200,000
35 80 2,050 194,414 81,135 81,135 200,000
36 81 2,050 206,288 82,746 82,746 200,000
37 82 2,050 218,755 84,004 84,004 200,000
38 83 2,050 231,845 84,832 84,832 200,000
39 84 2,050 245,590 85,083 85,083 200,000
40 85 2,050 260,022 84,576 84,576 200,000
41 86 2,050 275,175 83,235 83,235 200,000
42 87 2,050 291,086 80,461 80,461 200,000
43 88 2,050 307,793 76,029 76,029 200,000
44 89 2,050 325,335 69,677 69,677 200,000
45 90 2,050 343,755 61,244 61,244 200,000
46 91 2,050 363,095 51,479 51,479 200,000
47 92 2,050 383,402 39,350 39,350 200,000
48 93 2,050 404,725 22,920 22,920 200,000
49 94 2,050 427,113 1,564 1,564 200,000
50 95 0 448,469 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 Female Non-Smoker Preferred Prepared On 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-30
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,050 0 1,338 200,000 0 1,531 200,000 0 1,531 200,000
5 2,050 2,834 4,474 200,000 5,278 6,918 200,000 7,516 9,156 200,000
10 2,050 5,864 6,889 200,000 15,048 16,073 200,000 22,848 23,873 200,000
20 2,050 7,550 7,550 200,000 54,472 54,472 200,000 89,674 89,674 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 89,185 89,185 200,000 157,318 157,318 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED 416,899 416,899 437,744 773,261 773,261 811,924
@ Age 90 2,050 LAPSED LAPSED LAPSED 679,376 679,376 713,344 1,273,058 1,273,058 1,336,711
* Policy lapses in policy year 25 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 I 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 me that they are not guaranteed.
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-31
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,050 2,153 0 1,338 200,000 0 1,531 200,000 0 1,531 200,000
2 47 2,050 4,413 552 2,192 200,000 1,088 2,728 200,000 1,536 3,176 200,000
3 48 2,050 6,786 1,374 3,014 200,000 2,394 4,034 200,000 3,336 4,976 200,000
4 49 2,050 9,278 2,142 3,782 200,000 3,795 5,435 200,000 5,330 6,970 200,000
5 50 2,050 11,894 2,834 4,474 200,000 5,278 6,918 200,000 7,516 9,156 200,000
6 51 2,050 14,641 3,473 5,113 200,000 6,878 8,518 200,000 9,939 11,579 200,000
7 52 2,050 17,526 4,038 5,678 200,000 8,584 10,224 200,000 12,601 14,241 200,000
8 53 2,050 20,554 4,734 6,169 200,000 10,615 12,050 200,000 15,734 17,169 200,000
9 54 2,050 23,735 5,335 6,565 200,000 12,757 13,987 200,000 19,139 20,369 200,000
10 55 2,050 27,074 5,864 6,889 200,000 15,048 16,073 200,000 22,848 23,873 200,000
11 56 2,050 30,580 6,648 7,468 200,000 17,857 18,677 200,000 27,291 28,111 200,000
12 57 2,050 34,262 7,337 7,952 200,000 20,871 21,486 200,000 32,155 32,770 200,000
13 58 2,050 38,127 7,932 8,342 200,000 24,118 24,528 200,000 37,468 37,878 200,000
14 59 2,050 42,186 8,434 8,639 200,000 27,627 27,832 200,000 43,181 43,386 200,000
15 60 2,050 46,448 8,844 8,844 200,000 31,432 31,432 200,000 49,353 49,353 200,000
16 61 2,050 50,923 8,934 8,934 200,000 35,344 35,344 200,000 55,913 55,913 200,000
17 62 2,050 55,621 8,889 8,889 200,000 39,590 39,590 200,000 63,143 63,143 200,000
18 63 2,050 60,555 8,662 8,662 200,000 44,175 44,175 200,000 71,107 71,107 200,000
19 64 2,050 65,735 8,231 8,231 200,000 49,129 49,129 200,000 79,916 79,916 200,000
20 65 2,050 71,174 7,550 7,550 200,000 54,472 54,472 200,000 89,674 89,674 200,000
21 66 2,050 76,886 6,595 6,595 200,000 60,245 60,245 200,000 100,502 100,502 200,000
22 67 2,050 82,882 5,360 5,360 200,000 66,521 66,521 200,000 112,521 112,521 200,000
23 68 2,050 89,179 3,844 3,844 200,000 73,381 73,381 200,000 125,875 125,875 200,000
24 69 2,050 95,791 2,016 2,016 200,000 80,904 80,904 200,000 140,740 140,740 200,000
25 70 2,050 102,733 LAPSED LAPSED LAPSED 89,185 89,185 200,000 157,318 157,318 200,000
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 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-32
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,050 110,022 98,313 98,313 200,000 175,824 175,824 202,197
27 72 2,050 117,675 108,400 108,400 200,000 196,397 196,397 221,929
28 73 2,050 125,712 119,575 119,575 200,000 219,165 219,165 243,273
29 74 2,050 134,150 132,003 132,003 200,000 244,354 244,354 266,346
30 75 2,050 143,010 145,937 145,937 200,000 272,244 272,244 291,301
31 76 2,050 152,313 161,686 161,686 200,000 303,155 303,155 318,312
32 77 2,050 162,081 179,683 179,683 200,000 337,286 337,286 354,150
33 78 2,050 172,337 200,357 200,357 210,375 374,970 374,970 393,718
34 79 2,050 183,107 223,273 223,273 234,437 416,569 416,569 437,397
35 80 2,050 194,414 248,494 248,494 260,918 462,486 462,486 485,610
36 81 2,050 206,288 276,228 276,228 290,039 513,159 513,159 538,817
37 82 2,050 218,755 306,697 306,697 322,032 569,046 569,046 597,499
38 83 2,050 231,845 340,135 340,135 357,141 630,659 630,659 662,192
39 84 2,050 245,590 376,782 376,782 395,622 698,538 698,538 733,465
40 85 2,050 260,022 416,899 416,899 437,744 773,261 773,261 811,924
41 86 2,050 275,175 460,755 460,755 483,793 855,496 855,496 898,271
42 87 2,050 291,086 508,636 508,636 534,067 945,799 945,799 993,089
43 88 2,050 307,793 560,833 560,833 588,874 1,044,914 1,044,914 1,097,159
44 89 2,050 325,335 617,645 617,645 648,527 1,153,671 1,153,671 1,211,355
45 90 2,050 343,755 679,376 679,376 713,344 1,273,058 1,273,058 1,336,711
46 91 2,050 363,095 746,314 746,314 783,630 1,404,584 1,404,584 1,474,813
47 92 2,050 383,402 820,746 820,746 853,576 1,550,759 1,550,759 1,612,789
48 93 2,050 404,725 903,960 903,960 931,079 1,713,157 1,713,157 1,764,552
49 94 2,050 427,113 997,588 997,588 1,017,540 1,894,282 1,894,282 1,932,167
50 95 2,050 450,622 1,103,781 1,103,781 1,114,819 2,096,888 2,096,888 2,117,857
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 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-33
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 96 2,050 475,305 1,220,522 1,220,522 1,232,727 2,320,870 2,320,870 2,344,078
52 97 2,050 501,223 1,348,350 1,348,350 1,361,834 2,568,394 2,568,394 2,594,078
53 98 2,050 528,437 1,487,007 1,487,007 1,501,877 2,841,810 2,841,810 2,870,228
54 99 2,050 557,011 1,637,598 1,637,598 1,653,974 3,143,908 3,143,908 3,175,347
55 100 2,050 587,014 1,803,228 1,803,228 1,821,260 3,477,674 3,477,674 3,512,451
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-34
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,050 0 1,336 201,336 0 1,336 201,336 0 1,336 201,336
5 2,050 2,775 4,415 204,415 2,775 4,415 204,415 4,594 6,234 206,234
10 2,050 5,638 6,663 206,663 5,638 6,663 206,663 10,567 11,592 211,592
20 2,050 6,550 6,550 206,550 6,550 6,550 206,550 18,822 18,822 218,822
@ Age 70 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 17,948 17,948 217,948
@ 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 25 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 25 based on guaranteed charges and a gross
investment return of 0.00%.
***Policy lapses in policy year 35 based on current charges and a gross
investment return of 0.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-35
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,050 2,153 0 1,336 201,336 0 1,336 201,336 0 1,336 201,336
2 47 2,050 4,413 541 2,181 202,181 541 2,181 202,181 968 2,608 202,608
3 48 2,050 6,786 1,351 2,991 202,991 1,351 2,991 202,991 2,200 3,840 203,840
4 49 2,050 9,278 2,103 3,743 203,743 2,103 3,743 203,743 3,417 5,057 205,057
5 50 2,050 11,894 2,775 4,415 204,415 2,775 4,415 204,415 4,594 6,234 206,234
6 51 2,050 14,641 3,390 5,030 205,030 3,390 5,030 205,030 5,756 7,396 207,396
7 52 2,050 17,526 3,926 5,566 205,566 3,926 5,566 205,566 6,879 8,519 208,519
8 53 2,050 20,554 4,589 6,024 206,024 4,589 6,024 206,024 8,169 9,604 209,604
9 54 2,050 23,735 5,152 6,382 206,382 5,152 6,382 206,382 9,399 10,629 210,629
10 55 2,050 27,074 5,638 6,663 206,663 5,638 6,663 206,663 10,567 11,592 211,592
11 56 2,050 30,580 6,373 7,193 207,193 6,373 7,193 207,193 12,046 12,866 212,866
12 57 2,050 34,262 7,006 7,621 207,621 7,006 7,621 207,621 13,462 14,077 214,077
13 58 2,050 38,127 7,539 7,949 207,949 7,539 7,949 207,949 14,790 15,200 215,200
14 59 2,050 42,186 7,972 8,177 208,177 7,972 8,177 208,177 15,915 16,120 216,120
15 60 2,050 46,448 8,308 8,308 208,308 8,308 8,308 208,308 16,838 16,838 216,838
16 61 2,050 50,923 8,318 8,318 208,318 8,318 8,318 208,318 17,452 17,452 217,452
17 62 2,050 55,621 8,186 8,186 208,186 8,186 8,186 208,186 17,963 17,963 217,963
18 63 2,050 60,555 7,865 7,865 207,865 7,865 7,865 207,865 18,349 18,349 218,349
19 64 2,050 65,735 7,335 7,335 207,335 7,335 7,335 207,335 18,634 18,634 218,634
20 65 2,050 71,174 6,550 6,550 206,550 6,550 6,550 206,550 18,822 18,822 218,822
21 66 2,050 76,886 5,491 5,491 205,491 5,491 5,491 205,491 18,912 18,912 218,912
22 67 2,050 82,882 4,160 4,160 204,160 4,160 4,160 204,160 18,882 18,882 218,882
23 68 2,050 89,179 2,560 2,560 202,560 2,560 2,560 202,560 18,710 18,710 218,710
24 69 2,050 95,791 673 673 200,673 673 673 200,673 18,398 18,398 218,398
25 70 2,050 102,733 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 17,948 17,948 217,948
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 Female Non-Smoker Preferred Prepared on 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-36
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,050 110,022 17,289 17,289 217,289
27 72 2,050 117,675 16,449 16,449 216,449
28 73 2,050 125,712 15,430 15,430 215,430
29 74 2,050 134,150 14,044 14,044 214,044
30 75 2,050 143,010 12,272 12,272 212,272
31 76 2,050 152,313 10,118 10,118 210,118
32 77 2,050 162,081 7,351 7,351 207,351
33 78 2,050 172,337 4,002 4,002 204,002
34 79 2,050 183,107 78 78 200,078
35 80 0 192,262 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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-37
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,050 0 1,336 201,336 0 1,432 201,432 0 1,432 201,432
5 2,050 2,775 4,415 204,415 3,874 5,514 205,514 5,917 7,557 207,557
10 2,050 5,638 6,663 206,663 9,191 10,216 210,216 15,483 16,508 216,508
20 2,050 6,550 6,550 206,550 18,637 18,637 218,637 39,251 39,251 239,251
@ Age 70 2,050 LAPSED LAPSED LAPSED 15,037 15,037 215,037 50,131 50,131 250,131
@ Age 85 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 31,272 31,272 231,272
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
* Policy lapses in policy year 25 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 6.00%.
***Policy lapses in policy year 43 based on current charges and a gross
investment return of 6.00%.
Applicant's or I 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 me that they are not guaranteed.
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-38
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,050 2,153 0 1,336 201,336 0 1,432 201,432 0 1,432 201,432
2 47 2,050 4,413 541 2,181 202,181 802 2,442 202,442 1,243 2,883 202,883
3 48 2,050 6,786 1,351 2,991 202,991 1,835 3,475 203,475 2,738 4,378 204,378
4 49 2,050 9,278 2,103 3,743 203,743 2,867 4,507 204,507 4,303 5,943 205,943
5 50 2,050 11,894 2,775 4,415 204,415 3,874 5,514 205,514 5,917 7,557 207,557
6 51 2,050 14,641 3,390 5,030 205,030 4,879 6,519 206,519 7,607 9,247 209,247
7 52 2,050 17,526 3,926 5,566 205,566 5,858 7,498 207,498 9,351 10,991 210,991
8 53 2,050 20,554 4,589 6,024 206,024 7,015 8,450 208,450 11,359 12,794 212,794
9 54 2,050 23,735 5,152 6,382 206,382 8,119 9,349 209,349 13,402 14,632 214,632
10 55 2,050 27,074 5,638 6,663 206,663 9,191 10,216 210,216 15,483 16,508 216,508
11 56 2,050 30,580 6,373 7,193 207,193 10,565 11,385 211,385 17,987 18,807 218,807
12 57 2,050 34,262 7,006 7,621 207,621 11,897 12,512 212,512 20,550 21,165 221,165
13 58 2,050 38,127 7,539 7,949 207,949 13,184 13,594 213,594 23,150 23,560 223,560
14 59 2,050 42,186 7,972 8,177 208,177 14,423 14,628 214,628 25,667 25,872 225,872
15 60 2,050 46,448 8,308 8,308 208,308 15,613 15,613 215,613 28,097 28,097 228,097
16 61 2,050 50,923 8,318 8,318 208,318 16,522 16,522 216,522 30,329 30,329 230,329
17 62 2,050 55,621 8,186 8,186 208,186 17,327 17,327 217,327 32,567 32,567 232,567
18 63 2,050 60,555 7,865 7,865 207,865 17,973 17,973 217,973 34,789 34,789 234,789
19 64 2,050 65,735 7,335 7,335 207,335 18,429 18,429 218,429 37,016 37,016 237,016
20 65 2,050 71,174 6,550 6,550 206,550 18,637 18,637 218,637 39,251 39,251 239,251
21 66 2,050 76,886 5,491 5,491 205,491 18,561 18,561 218,561 41,493 41,493 241,493
22 67 2,050 82,882 4,160 4,160 204,160 18,187 18,187 218,187 43,718 43,718 243,718
23 68 2,050 89,179 2,560 2,560 202,560 17,502 17,502 217,502 45,901 45,901 245,901
24 69 2,050 95,791 673 673 200,673 16,465 16,465 216,465 48,039 48,039 248,039
25 70 2,050 102,733 LAPSED LAPSED LAPSED 15,037 15,037 215,037 50,131 50,131 250,131
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
1 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-39
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,050 110,022 13,125 13,125 213,125 52,101 52,101 252,101
27 72 2,050 117,675 10,632 10,632 210,632 53,968 53,968 253,968
28 73 2,050 125,712 7,409 7,409 207,409 55,727 55,727 255,727
29 74 2,050 134,150 3,274 3,274 203,274 57,176 57,176 257,176
30 75 2,050 143,010 LAPSED LAPSED LAPSED 58,278 58,278 258,278
31 76 2,050 152,313 59,015 59,015 259,015
32 77 2,050 162,081 59,126 59,126 259,126
33 78 2,050 172,337 58,605 58,605 258,605
34 79 2,050 183,107 57,423 57,423 257,423
35 80 2,050 194,414 55,573 55,573 255,573
36 81 2,050 206,288 52,998 52,998 252,998
37 82 2,050 218,755 49,470 49,470 249,470
38 83 2,050 231,845 44,844 44,844 244,844
39 84 2,050 245,590 38,873 38,873 238,873
40 85 2,050 260,022 31,272 31,272 231,272
41 86 2,050 275,175 21,989 21,989 221,989
42 87 2,050 291,086 10,134 10,134 210,134
43 88 0 305,641 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 Female Non-Smoker Preferred Prepared On 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-40
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 2,050 0 1,336 201,336 0 1,529 201,529 0 1,529 201,529
5 2,050 2,775 4,415 204,415 5,185 6,825 206,825 7,475 9,115 209,115
10 2,050 5,638 6,663 206,663 14,498 15,523 215,523 22,591 23,616 223,616
20 2,050 6,550 6,550 206,550 48,132 48,132 248,132 84,931 84,931 284,931
@ Age 70 2,050 LAPSED LAPSED LAPSED 70,744 70,744 270,744 142,381 142,381 342,381
@ Age 85 2,050 LAPSED LAPSED LAPSED 68,369 68,369 268,369 562,628 562,628 762,628
@ Age 90 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 843,975 843,975 1,043,975
* Policy lapses in policy year 25 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 43 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 I 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 told
Acknowledgement me that they are not guaranteed.
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 Female Non-Smoker Preferred Prepared on: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.000 . Premium Mode: Annual . Riders: None Form #
B2-98
D-41
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
1 46 2,050 2,153 0 1,336 201,336 0 1,529 201,529 0 1,529 201,529
2 47 2,050 4,413 541 2,181 202,181 1,075 2,715 202,715 1,530 3,170 203,170
3 48 2,050 6,786 1,351 2,991 202,991 2,364 4,004 204,004 3,322 4,962 204,962
4 49 2,050 9,278 2,103 3,743 203,743 3,739 5,379 205,379 5,305 6,945 206,945
5 50 2,050 11,894 2,775 4,415 204,415 5,185 6,825 206,825 7,475 9,115 209,115
6 51 2,050 14,641 3,390 5,030 205,030 6,736 8,376 208,376 9,876 11,516 211,516
7 52 2,050 17,526 3,926 5,566 205,566 8,376 10,016 210,016 12,509 14,149 214,149
8 53 2,050 20,554 4,589 6,024 206,024 10,320 11,755 211,755 15,602 17,037 217,037
9 54 2,050 23,735 5,152 6,382 206,382 12,350 13,580 213,580 18,954 20,184 220,184
10 55 2,050 27,074 5,638 6,663 206,663 14,498 15,523 215,523 22,591 23,616 223,616
11 56 2,050 30,580 6,373 7,193 207,193 17,126 17,946 217,946 26,943 27,763 227,763
12 57 2,050 34,262 7,006 7,621 207,621 19,911 20,526 220,526 31,686 32,301 232,301
13 58 2,050 38,127 7,539 7,949 207,949 22,871 23,281 223,281 36,839 37,249 237,249
14 59 2,050 42,186 7,972 8,177 208,177 26,024 26,229 226,229 42,318 42,523 242,523
15 60 2,050 46,448 8,308 8,308 208,308 29,391 29,391 229,391 48,159 48,159 248,159
16 61 2,050 50,923 8,318 8,318 208,318 32,765 32,765 232,765 54,296 54,296 254,296
17 62 2,050 55,621 8,186 8,186 208,186 36,348 36,348 236,348 60,987 60,987 260,987
18 63 2,050 60,555 7,865 7,865 207,865 40,112 40,112 240,112 68,267 68,267 268,267
19 64 2,050 65,735 7,335 7,335 207,335 44,050 44,050 244,050 76,224 76,224 276,224
20 65 2,050 71,174 6,550 6,550 206,550 48,132 48,132 248,132 84,931 84,931 284,931
21 66 2,050 76,886 5,491 5,491 205,491 52,347 52,347 252,347 94,466 94,466 294,466
22 67 2,050 82,882 4,160 4,160 204,160 56,709 56,709 256,709 104,895 104,895 304,895
23 68 2,050 89,179 2,560 2,560 202,560 61,235 61,235 261,235 116,286 116,286 316,286
24 69 2,050 95,791 673 673 200,673 65,916 65,916 265,916 128,744 128,744 328,744
25 70 2,050 102,733 LAPSED LAPSED LAPSED 70,744 70,744 270,744 142,381 142,381 342,381
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-42
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
26 71 2,050 110,022 75,660 75,660 275,660 157,249 157,249 357,249
27 72 2,050 117,675 80,596 80,596 280,596 173,504 173,504 373,504
28 73 2,050 125,712 85,429 85,429 285,429 191,295 191,295 391,295
29 74 2,050 134,150 89,996 89,996 289,996 210,584 210,584 410,584
30 75 2,050 143,010 94,194 94,194 294,194 231,507 231,507 431,507
31 76 2,050 152,313 97,832 97,832 297,832 254,239 254,239 454,239
32 77 2,050 162,081 100,799 100,799 300,799 278,722 278,722 478,722
33 78 2,050 172,337 102,924 102,924 302,924 305,168 305,168 505,168
34 79 2,050 183,107 104,014 104,014 304,014 333,790 333,790 533,790
35 80 2,050 194,414 103,809 103,809 303,809 364,844 364,844 564,844
36 81 2,050 206,288 101,966 101,966 301,966 398,566 398,566 598,566
37 82 2,050 218,755 98,060 98,060 298,060 435,043 435,043 635,043
38 83 2,050 231,845 91,564 91,564 291,564 474,470 474,470 674,470
39 84 2,050 245,590 81,874 81,874 281,874 516,963 516,963 716,963
40 85 2,050 260,022 68,369 68,369 268,369 562,628 562,628 762,628
41 86 2,050 275,175 50,358 50,358 250,358 611,830 611,830 811,830
42 87 2,050 291,086 27,106 27,106 227,106 664,127 664,127 864,127
43 88 2,050 307,793 LAPSED LAPSED LAPSED 719,880 719,880 919,880
44 89 2,050 325,335 779,563 779,563 979,563
45 90 2,050 343,755 843,975 843,975 1,043,975
46 91 2,050 363,095 915,294 915,294 1,115,294
47 92 2,050 383,402 993,218 993,218 1,193,218
48 93 2,050 404,725 1,076,820 1,076,820 1,276,820
49 94 2,050 427,113 1,167,338 1,167,338 1,367,338
50 95 2,050 450,622 1,265,398 1,265,398 1,465,398
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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-43
[LOGO] MONY
LIFE INSURANCE ILLUSTRATION
MONY Variable Universal Life
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 Age Outlay at 5% Value Value Proceeds Value Value Proceeds Value Value Proceeds
51 96 2,050 475,305 1,373,001 1,373,001 1,573,001
52 97 2,050 501,223 1,490,167 1,490,167 1,690,167
53 98 2,050 528,437 1,616,680 1,616,680 1,816,680
54 99 2,050 557,011 1,754,736 1,754,736 1,954,736
55 100 2,050 587,014 1,905,562 1,905,562 2,105,562
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, INVETCO 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 Female Non-Smoker Preferred Prepared On: 10/11/2001
Specified Amount: $200,000 . Death Benefit Option: Specified Amount for Option
2 . TP: $2,050.00 . GPT Version 01.2002
Initial Modal Premium: $2,050.00 . Premium Mode: Annual . Riders: None Form #
B2-98
D-44
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
(INFORMATION NOT REQUIRED IN A PROSPECTUS)
II-1
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.
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.
II-2
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.
(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.
II-3
(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.
(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
II-4
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 Life Insurance Company of America.
II-5
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 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
II-6
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