As filed with the Securities and Exchange Commission on November 7, 2002
Registration Nos. 333-40554
811-06217
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-6
Pre-Effective Amendment No. 4
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FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF SECURITIES
OF UNIT INVESTMENT TRUSTS REGISTERED ON FORMS N-8B-2
MONY VARIABLE ACCOUNT L
(Exact Name of Trust)
MONY LIFE INSURANCE COMPANY
(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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It is proposed that this filing will become effective (check appropriate box)
[_]immediately upon filing pursuant to paragraph (b) of Rule 485
[_]on pursuant to paragraph (b) of Rule 485
[_]60 days after filing pursuant to paragraph (a)(1) of Rule 485
[_]on pursuant to paragraph (a)(1) of Rule 485
[_]75 days after filing pursuant to paragraph (a)(2) of Rule 485
[_]on pursuant to paragraph (a)(2) 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: Flexible Premium Variable Universal Life Insurance
Policy
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.
================================================================================
PROSPECTUS
November 12, 2002
Flexible Premium Variable Life Insurance Policy
Issued by
MONY Life Insurance Company
MONY Variable Account L
MONY Life Insurance Company (the "Company") issues a flexible premium variable
life insurance policy described in this Prospectus. Among the policy's many
terms are:
Allocation of Premiums and Cash Values:
.. The policy owner can tell us what to do with the premium payments. The policy
owner can also tell us what to do with the cash values the policy may create
as a result of those premium payments.
. The policy owner can tell us to place them into a separate account. That
separate account is called MONY Variable Account L.
. If the policy owner does, the owner can also tell us to place premium
payments and cash values into any or all of 52 different subaccounts. Each
of these subaccounts seeks to achieve a different investment objective. If
the policy owner tells us to place the premium payments and cash values
into one or more subaccounts of the separate account, the policy owner
bears the risk that the investment objectives will not be met. That risk
includes not earning any money on premium payments and cash values and
also that premium payments and cash value may lose some or all of their
value.
. The policy owner can also tell us to place some or all of the premium
payments and cash values into our account. Our account is called the
Guaranteed Interest Account. If the policy owner elects the Guaranteed
Interest Account, 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 4.0% interest annually. We may pay more than 4.0% if we choose. Premium
payments and cash values the policy owner places into the Guaranteed
Interest Account become part of our assets.
Death Benefit:
.. We will pay death benefit proceeds to the named beneficiary if the insured
dies before age 95 while the policy is in effect. The death proceeds 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:
.. The policy owner may ask for some or all of the policy's cash value at any
time. The policy owner may borrow up to 90% of the policy's cash value from
us at any time. The policy owner 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.
This prospectus comes with prospectuses for The Alger American Fund, Dreyfus
Variable Investment Fund, Enterprise Accumulation Trust, Fidelity Variable
Insurance Products, INVESCO Variable Funds, Inc., Janus Aspen Series, Lord
Abbett Series Fund, MFS(R) Variable Insurance Trust/SM/, MONY Series Fund,
Inc., PIMCO Variable Insurance Trust, T. Rowe Price Equity Series, Inc., The
Universal Institutional Funds, Inc, and Vanguard(R) Variable Insurance Fund.
You should read these prospectuses carefully and keep them for future reference.
This prospectus must be accompanied by the prospectuses for the underlying
funds.
Interests in the policies and shares of the funds are not deposits or
obligations of or guaranteed by a bank, and are not federally insured by the
Federal Deposit Insurance Corporation or any other government agency.
It may not be to your advantage to purchase this policy as a replacement for
another type of life insurance or as a means to obtain additional insurance
protection if you already own another variable life insurance policy. It also
may not be to your advantage to finance the purchase of this policy through a
loan or through withdrawals from another policy that you already own.
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.
MONY Life Insurance Company
1740 Broadway, New York, New York 10019
1-800-487-6669
Table of Contents
Page
----
Summary of the Policy............................................. 1
Important Policy Terms........................................... 1
Purpose of the Policy............................................ 1
Explanation of a Case............................................ 2
Policy Premium Payments and Values............................... 2
Charges and Deductions........................................... 3
Fees and Expenses of the Funds................................... 4
Other Policies................................................... 6
The Death Benefit................................................ 7
Premium Features................................................. 7
Allocation Options............................................... 8
Transfer of Account Value........................................ 8
Policy Loans..................................................... 8
Full Surrender................................................... 8
Partial Surrender................................................ 8
Right to Return Policy Period.................................... 9
Grace Period and Lapse........................................... 9
Tax Treatment.................................................... 9
Riders........................................................... 10
Contacting the Company........................................... 10
Detailed Information About the Company And MONY Variable Account L 10
MONY Life Insurance Company...................................... 10
MONY Variable Account L.......................................... 10
The Funds......................................................... 11
Purchase of Portfolio Shares by MONY Variable Account L.......... 18
Detailed Information About The Policy............................. 19
Application for a Policy......................................... 19
Right to Examine a Policy -- Right to Return Policy Period....... 21
Premiums......................................................... 21
Choice of Definition of Life Insurance........................... 22
Guaranteed Death Benefit......................................... 23
Allocation of Net Premiums....................................... 24
Death Benefits under the Policy.................................. 24
Death Benefit Options............................................ 25
Changes in Death Benefit Amounts................................. 26
Guaranteed Death Benefit Rider................................... 29
Other Optional Insurance Benefits................................ 29
Benefits at Maturity............................................. 30
Enhanced Cash Value Rider........................................ 31
Policy Values.................................................... 31
Determination of Account Value................................... 32
Calculating Unit Values for Each Subaccount...................... 33
Transfer of Account Value........................................ 33
Transfers by Third Party......................................... 33
Right to Exchange Policy......................................... 34
Policy Loans..................................................... 34
Full Surrender................................................... 35
Partial Surrender................................................ 35
Grace Period and Lapse........................................... 36
Deductions from Premiums......................................... 38
Deductions from Account Value.................................... 39
Guarantee of Certain Charges..................................... 41
Corporate Purchasers -- Reduction of Charges..................... 42
i
Page
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Other Information..................................................... 42
Tax Considerations.................................................. 42
Tax Status of the Policy............................................ 42
Tax Treatment of Policy Benefits.................................... 43
Voting of Fund Shares............................................... 46
Disregard of Voting Instructions.................................... 46
Report to Policy Owners............................................. 46
Substitution of Investments and Right to Change Operations.......... 47
Changes to Comply with Law.......................................... 47
Performance Information............................................... 48
The Guaranteed Interest Account....................................... 48
General Description................................................. 49
Policy Charges...................................................... 49
Transfers........................................................... 50
Surrenders and Policy Loans......................................... 50
More About The Policy................................................. 50
Ownership........................................................... 50
Beneficiary......................................................... 50
The Policy.......................................................... 51
Notification and Claims Procedures.................................. 51
Payments............................................................ 51
Payment Plan/Settlement Provisions.................................. 52
Payment in Case of Suicide.......................................... 52
Assignment.......................................................... 52
Errors on the Application........................................... 52
Incontestability.................................................... 52
Policy Illustrations................................................ 53
Distribution of the Policy.......................................... 53
Policy Owner Services............................................... 54
More About The Company................................................ 55
Management.......................................................... 55
State Regulation.................................................... 56
Records and Accounts................................................ 56
Legal Proceedings................................................... 57
Legal Matters....................................................... 57
Registration Statement.............................................. 57
Independent Accountants............................................. 57
Financial Statements................................................ 57
Index to Financial Statements......................................... F-1
Appendix A.......................................................... A-1
Appendix B.......................................................... B-1
Appendix C.......................................................... C-1
Appendix D.......................................................... D-1
Appendix E.......................................................... E-1
Appendix F.......................................................... F-1
Appendix G.......................................................... G-1
ii
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 Variable Account L. The prospectus also briefly
will describe the Guaranteed Interest Account. The Guaranteed Interest Account
is also described in your policy. Before purchasing a policy, we urge you to
read the entire prospectus carefully.
Important Policy Terms
We are providing you with definitions for the following terms to make the
description of the policy provisions easier for you to understand.
Account Value -- The sum of the amounts under the policy held in each
subaccount of MONY Variable Account L, the Guaranteed Interest Account and the
Loan Account.
Cash Value -- The Account Value of the policy plus any refund of sales
charge.
Guaranteed Interest Account -- This account is part of the general account
of the Company. The policy owner may allocate all or a part of the policy's net
premium payments to this account. This account will credit the policy owner
with a fixed interest rate (which will not be less than 4.0%) declared by the
Company. (For more detailed information, see "The Guaranteed Interest Account".)
Loan Account -- An account to which amounts are transferred from the
subaccounts of MONY Variable Account L and the Guaranteed Interest Account as
collateral for any loan the policy owner requests. We will credit interest to
the Loan Account at a rate not less than 4.0%. The Loan Account is part of the
Company's general account.
Minimum Annual Premium -- The amount the Company determines is necessary to
keep the policy in effect.
Outstanding Debt -- The unpaid balance of any loan which the policy owner
requests on the policy. The unpaid balance includes accrued loan interest that
is due and has not been paid by the policy owner.
Specified Amount -- The minimum death benefit for as long as the policy
remains in effect.
Target Death Benefit -- The Target Death Benefit is the amount specified in
the application for the policy, or as changed by the policy owner from time to
time (Specified Amount) plus the Adjustable Term Insurance Rider's benefit
amount. You only have a Target Death Benefit if you have an Adjustable Term
Insurance Rider.
Valuation Date -- Each day that the New York Stock Exchange is open for
trading or any other day on which there is sufficient trading in the securities
of a Fund portfolio to materially affect unit value of that Subaccount of MONY
Variable Account L.
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
95, a maturity benefit will be paid instead of a death benefit. The policy
offers two base death benefit options. Under Option 1, the base death benefit
is equal to the greater of the Specified Amount in force on the date of the
insured's date of death plus the increase, if any, in Account Value since the
last monthly anniversary day, or the Cash Value on the insured's date of death
multiplied by the applicable death benefit percentage. Under Option 2, the base
death benefit is equal to the greater of the
1
Specified Amount in force on the insured's date of death plus Account Value on
the insured's date of death, or the Cash Value on the date of insured's death
multiplied by the applicable death benefit percentage. The policy also provides
surrender and loan privileges. The policy offers a choice of investment
alternatives and an opportunity for the policy's Account Value and its death
benefit to grow based on investment results. In addition, the policy owner
chooses the amount and frequency of premium payments, within certain limits. If
you are already entitled to favorable tax treatment, you should satisfy
yourself that the features of the policy meet your other financial goals before
you buy the policy.
Explanation of a Case
Each policy must be a part of a case. A case is a grouping of one or more
policies connected by a non-arbitrary factor. Examples of factors are
individuals who share a common employment, business or other relationship. The
sum of the premiums to be received by the Company in the first policy year for
the policies representing the case must be at least $100,000. The Company at
its sole discretion will determine what constitutes a case. A case may have one
policy owner (e.g., a single entity that owns all the policies in the case) or
as many policy owners as there are policies in the case.
Policy Premium Payments and Values
The Company receives the policy premium payments. From those premium
payments, the Company makes deductions to pay premium and other taxes imposed
by state and local governments. The Company makes deductions to cover the cost
to the Company of a deferred acquisition tax imposed by the United States
government. The Company will also deduct a sales charge to cover the costs of
making the policies available to the public. After deduction of these charges,
the amount remaining is called the net premium payment.
The policy owner may allocate net premium payments among the various
subaccounts of MONY Variable Account L and/or the Guaranteed Interest Account.
The net premium payments the owner allocates among the various subaccounts of
MONY Variable Account L may increase or decrease in value on any day depending
on the investment experience of the subaccounts the owner selects. The death
benefit may or may not increase or decrease depending on several factors
including the death benefit option chosen. The death benefit will never
decrease below the Specified Amount of your policy.
Net premium payments allocated to the Guaranteed Interest Account will be
credited with interest at a rate determined by the Company. That rate will not
be less than 4.0%.
The value of the net premium payments allocated to MONY Variable Account L
and to the Guaranteed Interest Account is called the Account Value. There is no
guarantee that the policy's Account Value and/or death benefit will increase.
You bear the risk that the net premiums and Account Value allocated to MONY
Variable Account L may be worth more or less while the policy remains in effect.
If the policy owner cancels the policy and returns it to the Company during
the Right to Return Policy Period, we will refund premiums paid. After the
Right to Return Policy Period, the owner may cancel his or her policy by
surrendering it to the Company. The Company will pay the owner the Account
Value plus any applicable refund of sales charges less any Outstanding Debt.
The Account Value plus any applicable refund of sales charge 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 Account Value and are
described in further detail below.
The policy remains in effect until the earliest of:
. A grace period expires without the payment of sufficient additional
premium to cover policy charges or repayment of the Outstanding Debt.
2
. Age 95.
. Death of the insured.
. Full surrender of the policy.
Generally, the policy remains in effect only as long as the Account Value
less Outstanding Debt is sufficient to pay all monthly deductions. However, 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
may remain in effect. The Guaranteed Death Benefit Rider requires the payment
of an agreed upon amount of premiums and is discussed below.
Charges and Deductions
The policy provides for the deduction of the various charges, costs and
expenses from the Account Value of the policy. These deductions are summarized
in the table below.
Deductions from Premiums
- -------------------------------------------------------------------------------------------------------
Sales Charge -- Deducted from premium up First 10 policy years -- 9%
to the Target Premium After the 10th policy year -- 0%
Ten policy years after an increase in Specified
Amount -- 9%
- -------------------------------------------------------------------------------------------------------
Tax Charge State and local -- 0% Federal -- 1.25%
- -------------------------------------------------------------------------------------------------------
Deductions from Account Value
- -------------------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount at risk* at
the beginning of the policy month
- -------------------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge First 10 policy years -- .60% of Account Value
Annual Rate allocated to MONY Variable Account L.
After the 10th policy year -- maximum of .45% of
Account Value allocated to MONY Variable
Account L.
- -------------------------------------------------------------------------------------------------------
Administrative Charge (all policies) -- Monthly $7.50
- -------------------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of policy Specified Amount. Please
Monthly Charge for Death Benefit Rider note that the Rider requires that premiums on the
policy itself be paid in order to remain in effect.
- -------------------------------------------------------------------------------------------------------
Optional Adjustable Term Insurance Rider Current cost of insurance rate x net amount at risk* at
Charge -- the beginning of the policy month.
Monthly deduction for optional term insurance
benefit added by rider.
- -------------------------------------------------------------------------------------------------------
Transaction and Other Charges Lesser of $25 or 2% of the partial surrender amount
- -- Partial Surrender Fee Maximum of $25/1/
- -- Transfer of Account Value
* Net amount at risk equals the death benefit payable at the beginning of the
policy month less the Account Value at that time.
/1/ Currently the Company does not assess a transfer charge. The Company
reserves the right to charge up to a maximum of $25 for transfers.
We pay compensation to broker-dealers who sell the policies. For a
discussion of this compensation, see "Distribution of the Policy."
3
Fees and Expenses of the Funds
MONY Variable Account L is divided into subdivisions called subaccounts --
see "MONY Variable Account L". Each subaccount invests exclusively in shares of
a designated portfolio. Each portfolio pays a fee to its investment adviser to
manage the portfolio. The investment adviser fees for each portfolio are listed
in the table below. Each portfolio also incurs expenses in its operations.
These expenses are also shown in the table below. These fees and expenses vary
by portfolio and are set forth below. Their Boards govern the Funds. 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.
Annual Expenses for the Year Ended December 31, 2001
(as a percentage of average net assets)
Distribution and
Management Fees Other Expenses** Service (12b-1) Fees* Total Expenses **
(After Waivers/ (After Waivers/ (After Waivers/ (After Waivers/
Fund/Portfolio Reimbursements) Reimbursements) Reimbursements) Reimbursements)
- -------------- --------------- ---------------- --------------------- -----------------
The Alger American Fund -- Class
O Shares
Alger American Balanced Portfolio 0.75% 0.10% N/A 0.85%
Alger American MidCap Growth Portfolio 0.80% 0.08% N/A 0.88%
Dreyfus Variable Investment
Fund/(1) /-- Initial Shares
Appreciation Portfolio.................. 0.75% 0.03% N/A 0.78%
International Value Portfolio/(2)/...... 0.80% 0.60% N/A 1.40%
Enterprise Accumulation Trust
Growth Portfolio........................ 0.75% 0.09% N/A 0.84%
Small Company Growth Portfolio/(3)/..... 1.00% 0.10% N/A 1.10%
Small Company Value Portfolio/(3)/...... 0.80% 0.10% N/A 0.90%
Total Return Portfolio/(13)/............ 0.55% 0.10% N/A 0.65%
Fidelity Variable Insurance Products
Fund (VIP) -- Initial Class
Asset Manager/SM/ Portfolio............. 0.53% 0.11% N/A 0.64%
Contrafund(R) Portfolio/(4)/............ 0.58% 0.10% N/A 0.68%
Growth & Income Portfolio/(4)/.......... 0.48% 0.10% N/A 0.58%
Growth Portfolio/(4)/................... 0.58% 0.10% N/A 0.68%
INVESCO Variable Funds, Inc.
INVESCO VIF - Financial Services Fund 0.75% 0.32% N/A 1.07%
INVESCO VIF - Health Sciences Fund 0.75% 0.31% N/A 1.06%
INVESCO VIF - Telecommunications Fund 0.75% 0.34% N/A 1.09%
Janus Aspen Series -- Institutional
Shares
Capital Appreciation Portfolio.......... 0.65% 0.01% N/A 0.66%
Flexible Income Portfolio............... 0.64% 0.03% N/A 0.67%
International Growth Portfolio.......... 0.65% 0.06% N/A 0.71%
Worldwide Growth Portfolio.............. 0.65% 0.04% N/A 0.69%
Janus Aspen Series -- Service Shares
Strategic Value Portfolio/(5)/.......... 0.55% 0.70% 0.25% 1.50%
4
Distribution and
Management Fees Other Expenses** Service (12b-1) Fees* Total Expenses **
(After Waivers/ (After Waivers/ (After Waivers/ (After Waivers/
Fund/Portfolio Reimbursements) Reimbursements) Reimbursements) Reimbursements)
- -------------- --------------- ---------------- --------------------- -----------------
Lord Abbett Series Fund/(6), (7)/ -- Class VC
Bond-Debenture Portfolio..................... 0.50% 0.35% N/A 0.85%
Mid-Cap Value Portfolio...................... 0.75% 0.35% N/A 1.10%
MFS(R) Variable Insurance Trust/SM/ /(8)/ --
Initial Class
MFS New Discovery Series/(9)/................ 0.90% 0.15% N/A 1.05%
MFS Total Return Series...................... 0.75% 0.14% N/A 0.89%
MFS Utilities Series......................... 0.75% 0.18% N/A 0.93%
MONY Series Fund, Inc.
Government Securities Portfolio.............. 0.50% 0.12% N/A 0.62%
Intermediate Term Bond Portfolio............. 0.50% 0.12% N/A 0.62%
Long Term Bond Portfolio..................... 0.50% 0.12% N/A 0.62%
PIMCO Variable Insurance Trust/(10)/ --
Administrative Class
Global Bond Portfolio........................ 0.25% 0.65% N/A 0.90%
Real Return Portfolio........................ 0.25% 0.40% N/A 0.65%
T. Rowe Price Equity Series, Inc./(11)/
Equity Income Portfolio...................... 0.85% N/A N/A 0.85%
Mid-Cap Growth Portfolio..................... 0.85% N/A N/A 0.85%
Personal Strategy Balanced Portfolio......... 0.90% N/A N/A 0.90%
The Universal Institutional Funds, Inc. --
Class I
Core Plus Fixed Income Portfolio/(12)/
(formerly Fixed Income Portfolio).......... 0.40% 0.31% N/A 0.71%
Emerging Markets Debt Portfolio.............. 0.80% 0.37% N/A 1.17%
Emerging Markets Equity Portfolio/(12)/...... 1.25% 0.87% N/A 2.12%
Equity Growth Portfolio/(12)/................ 0.55% 0.36% N/A 0.91%
Global Value Equity Portfolio/(12)/.......... 0.80% 0.48% N/A 1.28%
Value Portfolio/(12)/........................ 0.55% 0.38% N/A 0.93%
Vanguard(R) Variable Insurance Fund
Balanced Portfolio........................... 0.11% 0.18% N/A 0.29%
Diversified Value Portfolio.................. 0.135% 0.315% N/A 0.45%
Equity Income Portfolio...................... 0.10% 0.23% N/A 0.33%
Equity Index Portfolio....................... 0.001% 0.169% N/A 0.17%
Growth Portfolio............................. 0.12% 0.21% N/A 0.33%
High Yield Bond Portfolio.................... 0.06% 0.22% N/A 0.28%
International Portfolio...................... 0.155% 0.275% N/A 0.43%
Mid-Cap Index Portfolio...................... 0.01% 0.27% N/A 0.28%
Money Market Portfolio....................... 0.01% 0.17% N/A 0.18%
REIT Index Portfolio......................... 0.02% 0.37% N/A 0.39%
Short-Term Corporate Portfolio............... 0.01% 0.20% N/A 0.21%
Small Company Growth Portfolio............... 0.21% 0.29% N/A 0.50%
Total Bond Market Index Portfolio............ 0.01% 0.21% N/A 0.22%
5
- ----------
* MONY Securities Corporation, the principal underwriter for the Policies,
will receive 12b-1 fees deducted from certain portfolio assets
attributable to the contracts for providing distribution and shareholder
servicing to some of the portfolios.
** "Other Expenses" and "Total Expenses" in the table reflect only
contractual waivers and/or reimbursements. Voluntary waivers and/or
reimbursements are not reflected in the table.
/(1)/ The expenses shown are for fiscal year ended December 31, 2001. Current
or future expenses may be greater or less than those presented. Please
consult the underlying mutual fund prospectus for more complete
information.
/(2)/ The expenses shown above reflect the portfolio adviser's waiver of fees
or reimbursement for the fiscal year ended December 31, 2001. Without
such waivers or reimbursements the management fee, "Other Expenses" and
"Total Expenses" would have been, as a percentage of assets, 1.00%, 0.60%
and 1.60%, respectively.
/(3)/ Enterprise Capital Management, Inc. has contractually agreed to limit
expenses on the Portfolios' expenses through May 1, 2003. Without the
contractual limitation, the total expenses would have been as follows:
Small Company Growth - 1.40%; Small Company Value - 1.30%.
/(4)/ Expenses do not include reimbursements. With reimbursements, expenses
would have been Growth - 0.65%; Contrafund - 0.64%; Growth & Income -
0.56%. Actual annual class operating expenses were lower because a
portion of the brokerage commissions that the fund paid was used to
reduce the fund's expenses. In addition, through arrangements with the
fund's custodian, credits realized as a result of uninvested cash
balances were used to reduce a portion of the fund's custodian expenses.
These offsets may be discontinued at any time. See the accompanying fund
prospectus for details.
/(5)/ Expenses are stated net of contractual waivers from Janus Capital.
Without waivers, the Strategic Value management fee, other expenses and
total expenses would have been 0.65%, 0.70% and 1.60%, respectively.
/(6)/ The Mid-Cap Value and Bond-Debenture Portfolios have each established non
12b-1 service fee agreements which are reflected under "Other Expenses".
/(7)/ The information in the chart above relating to Mid-Cap Value and
Bond-Debenture Portfolios has been restated to reflect the fees and
expenses that will be applicable during 2002. For the year 2001, Lord
Abbett & Co. (Lord Abbett), voluntarily waived a portion of its
management fees for the Mid-Cap Value portfolio and subsidized a portion
of the Mid-Cap Value and Bond-Debenture Portfolios' expenses to the
extent necessary to maintain the "Other Expenses" for the Mid-Cap Value
and Bond-Debenture Portfolios at an aggregate of 0.35% each Portfolio's
average daily net assets. Absent any waivers and reimbursements the total
annual gross expenses for the Mid-Cap Value Portfolio would have been
1.20% for the year 2001. Absent any reimbursements the total annual gross
expenses for the Bond-Debenture Portfolio would have been 0.33% on an
unannualized basis for the period December 3, 2001 (commencement of
operations) through December 31, 2001. For the year 2002, Lord Abbett
does not intend to waive its management fees for the Mid-Cap Value
Portfolio but has contractually agreed to continue to reimburse a portion
of the Mid-Cap Value and Bond-Debenture Portfolios' expenses to the
extent necessary to maintain the "Other Expenses" for the Mid-Cap Value
and Bond-Debenture Portfolios at an aggregate of 0.35% each Portfolio's
average daily net assets.
/(8)/ 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.
/(9)/ MFS has contractually agreed, subject to reimbursement, to bear expenses
for this series such that New Discovery Series' "Other Expenses" (after
taking into account the expense offset arrangement described above), do
not exceed the average daily net assets of the series during the current
fiscal year: 0.15%. This contractual fee arrangement will continue until
at least May 1, 2003, unless changed with the consent of the board of
trustees which oversees the series. Had these fee reductions not been
taken into account, "Other Expenses" would be higher and would equal
0.19%; "Total Expenses" would be higher and would equal: 1.09%.
/(10)/ 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 Real Return
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
"Other Expenses" would have been 0.42% for the Real Return Portfolio and
0.77% for the Global Bond Portfolio and "Total Expenses" would have been
0.67% for the Real Return Portfolio and 1.02% for the Global Bond
Portfolio. Ratio of net expenses to average net assets excluding
interest expense is 0.65% for the Real Return Portfolio and 0.90% for
the Global Bond Portfolio.
/(11)/ Management fees include the ordinary, recurring operating expenses, but
does not cover interest, taxes, brokerage, nonrecurring and
extraordinary items or fees and expenses for the Fund's independent
directors.
/(12)/ The Adviser has voluntarily agreed to reduce its management fee and/or
reimburse the Portfolios. With these reimbursements and/or fee waivers,
the "Total Expenses" and "Other Expenses" are, respectively, 0.70% and
0.31% for the Core Plus Fixed Income Portfolio; 1.75% and 0.87% for the
Emerging Markets Equity Portfolio; 0.85% and 0.36% for the Equity Growth
Portfolio; 1.15% and 0.48% for the Global Value Equity Portfolio; and
0.85% and 0.38% for the Value Portfolio.
/(13)/ The Total Return Portfolio was not in operation on December 31, 2001.
These are estimates of annual expenses.
Other Policies
We may offer other variable life insurance policies which also may invest in
the same (or many of the same) Fund portfolios offered under the policy. These
policies may have different charges that could affect their subaccounts'
performance, and they may offer different benefits.
6
The Death Benefit
The minimum Specified Amount is $100,000. However, the Specified Amount may
be reduced to $50,000 if at least $50,000 is provided by a Term Insurance Rider
added to the policy. The policy owner may elect one of two options to compute
the benefits payable upon the insured's death. The policy owner's selection may
increase the death benefit.
Option 1 -- The base death benefit equals the greater of:
(a)the Specified Amount plus the increase in the Account Value since the
last monthly anniversary; or
(b)the Cash Value on the insured's date of death multiplied by a death
benefit percentage required by the Federal tax law definition of life
insurance.
If the policy owner chooses Option 1, favorable investment performance
reduces the cost paid for the death benefit. This reduction will decrease the
deduction from Account Value.
Option 2 -- The base death benefit equals the greater of:
(a)the Specified Amount in force on the insured's date of death, plus
the Account Value on the insured's date of death; or
(b)The Cash Value on the insured's date of death multiplied by a death
benefit percentage required by the Federal tax law definition of life
insurance.
If the policy owner chooses Option 2, favorable investment performance will
increase the Account Value of the policy. This in turn increases insurance
coverage.
The policy owner may change the death benefit option and increase or
decrease the Specified Amount, subject to certain conditions. See "Death
Benefits Under the Policy."
When the policy owner applies for insurance, the policy owner can purchase
the Guaranteed Death Benefit Rider. This rider provides a guarantee that the
Specified Amount under the policy will remain in effect as long as:
(a)The required premiums (reduced by any partial surrenders and
applicable fees) have been paid; and
(b)The Account Value exceeds Outstanding Debt.
See "Guaranteed Death Benefit Rider."
Premium Features
The policy owner must pay an initial premium equal to at least one fourth of
the Minimum Annual Premium. After that, subject to certain limitations, the
policy owner may choose the amount and frequency of premium payments as the
policy owner's financial situation and needs change.
When the policy owner applies for a policy, the policy owner determines the
level amount to pay at fixed intervals over a specified period of time. The
policy owner elects to receive a premium notice on an annual, semiannual,
quarterly or monthly basis. However, the policy owner may choose to skip or
stop making premium payments. The policy continues in effect until the Account
Value (less Outstanding Debt) can no longer cover:
(1)The monthly deductions for the policy, and
(2)Any optional insurance benefits added by rider.
7
The amount, frequency and period of time over which the policy owner pays
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 "Tax
Considerations."
The payment of premiums the policy owner specifies on the application will
not guarantee that the policy will remain in effect. See "Grace Period and
Lapse." If any premium 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 the policy owner provides satisfactory
evidence of insurability.
Allocation Options
The policy owner may allocate premium payments and Account Value among the
various subaccounts of MONY Variable Account L. Each subaccount purchases
shares of a designated portfolio of The Alger American Fund, Dreyfus Variable
Investment Fund, Enterprise Accumulation Trust, Fidelity Variable Insurance
Products, INVESCO Variable Funds, Inc., Janus Aspen Series, Lord Abbett Series
Fund, MFS(R) Variable Insurance Trust/SM/, MONY Series Fund, Inc., PIMCO
Variable Insurance Trust, T. Rowe Price Equity Series, Inc., The Universal
Institutional Funds, Inc., and Vanguard(R) Variable Insurance Fund (the
"Funds"). The subaccounts available to the policy owner and the investment
objectives of each available subaccount are described in detail under "MONY
Variable Account L."
Transfer of Account Value
The policy owner may transfer Account Value among the subaccounts. Subject
to certain limitations, the policy owner may also transfer between the
subaccounts and the Guaranteed Interest Account. See "Transfer of Account
Value."
Policy Loans
The policy owner may borrow up to 90% of the policy's Account Value (less
any Outstanding Debt) from the Company. See "Policy Loans."
The amount of Outstanding Debt is subtracted from the death benefit. The
Outstanding Debt is repaid from the proceeds of a full surrender. See "Full
Surrender." Outstanding Debt may also affect the continuation of the policy.
See "Grace Period and Lapse." The Company charges interest on policy loans. If
the interest is not paid when due, the amount due will be added to the
principal amount of the Outstanding Debt.
Full Surrender
The policy owner can surrender the policy during the insured's lifetime and
receive its Cash Value, plus any applicable increase in Cash Value added by the
Enhanced Cash Value Rider, less any Outstanding Debt. See "Full Surrender."
If the policy owner has elected the Enhanced Cash Value Rider, the amount
received for a full cash surrender may include an additional percentage of the
Cash Value less any Outstanding Debt depending on whether the Enhanced Cash
Value Rider is in force and the year the full surrender is made. See "Enhanced
Cash Value Rider."
Partial Surrender
The policy owner may request a partial surrender if the Account Value less
Outstanding Debt after the deduction of the requested surrender amount and any
fees is greater than $500. If the requested amount exceeds the amount
available, we will reject the request and return it to the policy owner. A
partial surrender will generally decrease the Target Death Benefit. See
"Partial Surrender."
8
The minimum amount for a partial surrender is $500. A partial surrender fee
of the lesser of $25 or 2% of the amount surrendered will be assessed against
the remaining Account Value.
Right to Return Policy Period
The policy owner has the right to examine the policy when it is received.
The policy owner may return the policy for any reason and obtain a full refund
of the sum of the premiums paid if the policy is returned within 10 days after
it is received. The policy owner may also return the policy within 45 days
after the date the application for the policy is signed. During the Right to
Return Policy Period, net premiums will be allocated to the Guaranteed Interest
Account. See "Right to Examine a Policy -- Right to Return Policy Period".
Grace Period and Lapse
The policy will remain in effect as long as:
(1)The Account Value less Outstanding Debt is sufficient to pay the
current monthly deduction; or
(2)The policy owner requested the Guaranteed Death Benefit Rider and has
met all the requirements of that rider.
If the policy is about to terminate (or lapse), we will give the policy
owner notice that the policy owner must pay additional premiums. That notice
will tell the policy owner the minimum amount that must be paid 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 the policy owner has paid the
premiums required by the Guaranteed Death Benefit Rider. See "Guaranteed Death
Benefit." If the policy does not meet the test on that date, a notice will be
sent to the policy owner giving the policy owner 61 days from its date to make
additional payments to the Rider. See "Grace Period and Lapse."
Tax Treatment
The federal income tax laws generally tie the taxation of policy values to
the policy owner's receipt of those values. We believe that the policy should
satisfy applicable requirements to receive the tax treatment normally accorded
life insurance contracts under federal tax law. There is less guidance,
however, with respect to policies issued on a rated basis and policies with
term riders added and it is not clear whether such policies will in all cases
satisfy the applicable requirements. Assuming that a policy qualifies as a life
insurance contract for federal income tax purposes, you should not be deemed to
be in constructive receipt of value under your policy until there is a
distribution from the policy. Moreover, death benefits payable under a policy
should be completely excludable from the gross income of the beneficiary. As a
result, the beneficiary generally should not be taxed on these proceeds.
Under certain circumstances, a policy may be treated as a "Modified
Endowment Contract." If a policy is a Modified Endowment Contract, then all
pre-death distributions, including policy loans, will be treated first as
distribution of taxable income and then as a return of basis or investment in
the contract. In addition, prior to age 59 1/2, any distributions generally
will be subject to a 10% penalty tax.
If a policy is not a Modified Endowment Contract, distributions generally
will be treated first as a return of basis or investment in the contract and
then as disbursing taxable income. Moreover, neither distributions nor loans
from a policy that is not a Modified Endowment Contract are subject to the 10%
penalty tax. See "Tax Considerations."
9
Riders
Additional optional insurance benefits may be added to the policy by an
addendum called a Rider. There are three Riders available with this policy.
. Guaranteed Death Benefit Rider
. Adjustable Term Insurance Rider
. Enhanced Cash Value Rider
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 13221.
DETAILED INFORMATION ABOUT THE COMPANY
AND MONY VARIABLE ACCOUNT L
MONY Life Insurance Company
MONY Life Insurance Company issues the policy. In this prospectus MONY Life
Insurance Company is called the "Company". The Company is a stock life
insurance company organized in the State of New York. The Company is currently
licensed to sell life insurance and annuities in all 50 states of the United
States, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico.
The principal office of the Company is located at 1740 Broadway, New York,
New York 10019. The Company was founded in 1842 as The Mutual Life Insurance
Company of New York. In 1998, The Mutual Life Insurance Company of New York
converted to a stock company through demutualization and was renamed MONY Life
Insurance Company. The demutualization does not have any material effect on the
Company, MONY Variable Account L, or the policies.
On September 26, 2001, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was A
(Excellent). This rating is based upon an analysis of financial condition and
operating performance. The A.M. Best rating of the Company should be considered
only as bearing on the ability of the Company to meet its obligations under the
policies.
MONY Securities Corporation, a wholly-owned subsidiary of the Company, is
the principal underwriter for the policies.
MONY Variable Account L
MONY Variable Account L is a separate investment account of the Company.
Presently, only premium payments and cash values of flexible premium variable
life insurance policies are permitted to be allocated to MONY Variable Account
L. The assets in MONY 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 Variable Account L. The Company is
required to keep assets in MONY Variable Account L that equal the total market
value of the policy liabilities funded by MONY Variable Account L. Realized or
unrealized income gains or losses of MONY Variable Account L are credited or
charged against MONY 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 Variable Account L. MONY Variable
10
Account L assets are not chargeable with liabilities of the Company's other
businesses. In addition, the Company may transfer to its general account any
assets that exceed anticipated obligations of MONY Variable Account L.
MONY Variable Account L was authorized by the Board of Directors of the
Company and established under New York law on November 28, 1990. MONY Variable
Account L is registered with the SEC as a unit investment trust. The SEC does
not supervise the administration or investment practices or policies of MONY
Variable Account L.
MONY Variable Account L is divided into subdivisions called subaccounts.
Each subaccount invests exclusively in shares of a designated portfolio of the
Funds. 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. Some of the underlying portfolios have been
established by investment advisers which manage publicly traded mutual funds
having similar names and investment objectives. While some of the underlying
portfolios may be similar to, and may in fact be modeled after publicly traded
mutual funds, policy purchasers should understand that the underlying
portfolios have separate asset pools and are not otherwise directly related to
any publicly traded mutual funds. Consequently, the investment performance of
publicly traded mutual funds and any corresponding underlying portfolio may
differ substantially. In the future, the Company may establish additional
subaccounts within MONY Variable Account L. Future subaccounts may invest in
other portfolios of the Funds or in other securities. Not all subaccounts may
be available to you.
The subaccounts of MONY Variable Account L that are available to you
purchase shares from the underlying mutual funds and designated portfolios
shown in the table below with their respective investment objectives and
investment advisers.
THE FUNDS
The Funds (except for the Janus Aspen Series Capital Appreciation and
Strategic Value Portfolios) are diversified, open-end management investment
companies of the series type. Janus Aspen Series Capital Appreciation and
Strategic Value Portfolios are non-diversified, open-end management investment
companies. A nondiversified Fund may hold a larger position in a smaller number
of securities than a diversified Fund. This means that a single security's
increase or decrease in value may have a greater impact on the return and net
asset value of a non-diversified Fund than a diversified Fund. The Funds are
registered with the SEC under the Investment Company Act of 1940. The SEC does
not supervise the investments or investment policy of the Funds. Each available
subaccount of MONY Variable Account L will invest only in the shares of the
designated portfolio of the Funds.
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- ----------------------------------------------------------------------------------------------------
THE ALGER AMERICAN FUND
- ----------------------------------------------------------------------------------------------------
Alger American Seeks current income and long-term capital Fred Alger Management, Inc.
Balanced Subaccount appreciation. The portfolio focuses on stocks
of companies with growth potential and fixed-
income securities, with emphasis on 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, are
determined by the portfolio's Manager to be of
comparable quality to instruments so rated.
Ordinarily, at least 25% of the portfolio's net
assets are invested in fixed-income securities.
- ----------------------------------------------------------------------------------------------------
11
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- -----------------------------------------------------------------------------------------------------------
Alger American MidCap Seeks long-term capital appreciation. The Fred Alger Management, Inc.
Growth Subaccount portfolio focuses on midsize companies with
promising growth potential. Under normal
circumstances, the portfolio invests primarily
in the equity securities of companies having a
market capitalization within the range of
companies in the S&P MidCap 400(TM) Index.
- -----------------------------------------------------------------------------------------------------------
DREYFUS VARIABLE INVESTMENT FUND
- -----------------------------------------------------------------------------------------------------------
Dreyfus Appreciation Seeks long-term capital growth consistent with The Dreyfus Corporation
Subaccount the preservation of capital; current income is a (subadvised by Fayez
secondary goal. To pursue these goals, the Sarofim & Co.)
portfolio invests in common stocks focusing
on "blue chip" companies with total market
values of more than $5 billion at the time of
purchase.
- -----------------------------------------------------------------------------------------------------------
Dreyfus International Seeks long-term capital growth. To pursue this The Dreyfus Corporation
Value Subaccount goal, the portfolio normally invests at least
80% of its assets in stocks. The portfolio
ordinarily invests in at least ten foreign
countries, and limits its investments in any
single company to no more than 5% of its
assets at the time of purchase.
- -----------------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
- -----------------------------------------------------------------------------------------------------------
Enterprise Growth Objective: Seeks capital appreciation. Enterprise Capital
Subaccount Strategy: Primarily invest in U.S. common Management, Inc.
stocks of large capitalization companies. To (subadvised by Montag &
pursue this goal the fund usually invests in Caldwell, Inc.)
companies with long-term earnings potential
but which are currently selling at a discount to
their estimated long-term value.
- -----------------------------------------------------------------------------------------------------------
Enterprise Small Company Objective: Seeks capital appreciation. Enterprise Capital
Growth Subaccount Strategy: Invest primarily in common stocks of Management, Inc.
small capitalization companies with above- (subadvised by William D.
average growth characteristics that are Witter, Inc.)
reasonably valued.
- -----------------------------------------------------------------------------------------------------------
Enterprise Small Company Objective: Seeks maximum capital appreciation. Enterprise Capital
Value Subaccount Strategy: Invest primarily in common stocks of Management, Inc.
small capitalization companies that the portfolio (subadvised by Gabelli
manager believes are undervalued -- that is the Asset Management
stock's market price does not fully reflect the Company)
company's value.
- -----------------------------------------------------------------------------------------------------------
Enterprise Total Objective: Seeks total return. Strategy: Enterprise Capital
Return Subaccount Primarily invest in a diversified portfolio of Management, Inc.
fixed income instruments of varying (subadvised by Pacific
maturities. Investment Management
Company, LLP)
- -----------------------------------------------------------------------------------------------------------
12
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- ----------------------------------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS
- ----------------------------------------------------------------------------------------------------------------------
Fidelity VIP Asset Manager/SM/ Objective/Strategy: Seeks to obtain high total return Fidelity Management &
Subaccount with reduced risk over the long term by allocating Research (subadvised by
its assets among stocks, bonds, and short-term Fidelity Management &
investments. Research (U.K.), Fidelity
Management & Research Far
East, Fidelity Investments
Japan Limited and FMR Co.,
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Fidelity VIP Contrafund(R) Objective/Strategy: Seeks long-term capital Fidelity Management &
Subaccount appreciation by investing mainly in equity securities Research (subadvised by
of companies whose value is not fully recognized Fidelity Management &
by the public -- that typically, includes companies Research (U.K.), Fidelity
in turnaround situations, companies experiencing Management & Research Far
transitory difficulties, and undervalued companies. East and FMR Co., Inc.
May also invest in foreign issuers.
- ----------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth and Objective/Strategy: Seeks high total return through Fidelity Management &
Income Subaccount a combination of current income and capital Research (subadvised by
appreciation by investing a majority of assets in Fidelity Management &
common stocks with a focus on those that pay Research (U.K.), Fidelity
current dividends and show potential for capital Management & Research Far
appreciation. East, Fidelity Investments
Japan Limited and FMR Co.,
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Objective/Strategy: Seeks capital appreciation by Fidelity Management &
Subaccount investing primarily in common stocks that it Research, Fidelity Investments
believes have above-average growth potential -- Japan Limited, Fidelity
that tends to be companies with higher than average Investments Money
price/earnings ratios, and with new products, Management, Inc. and FMR
technologies, distribution channels or other Co., Inc.
opportunities, or have a strong industry or market
position. May also invest in foreign issuers.
- ----------------------------------------------------------------------------------------------------------------------
INVESCO VARIABLE INVESTMENT FUNDS, INC.
- ----------------------------------------------------------------------------------------------------------------------
INVESCO VIF Financial Seeks to provide capital growth by normally INVESCO Funds Group, Inc.
Services Subaccount investing at least 80% of its assets in equity
securities and equity-related instruments of
companies involved in the financial services sector.
- ----------------------------------------------------------------------------------------------------------------------
INVESCO VIF -- Health Seeks to provide capital growth by normally INVESCO Funds Group, Inc.
Sciences Subaccount investing at least 80% of its assets in equity
securities and equity-related instruments of
companies that develop, produce or distribute
products or services related to health care.
- ----------------------------------------------------------------------------------------------------------------------
INVESCO VIF -- Seeks to provide capital growth and current income INVESCO Funds Group, Inc.
Telecommunications by normally investing at least 65% (80% effective
Subaccount July 31, 2002) of its assets in the equity securities
and equity-related instruments of companies
involved in the design, development, manufacture,
distribution, or sale of communications services and
equipment, and 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.
- ----------------------------------------------------------------------------------------------------------------------
13
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- ---------------------------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES
- ---------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Capital Seeks long-term growth of capital. It pursues Janus Capital
Appreciation Subaccount its objective by investing primarily in common
stocks selected for their growth potential. The
portfolio may invest in companies of any size
from larger, well-established companies to
smaller, emerging growth companies.
- ---------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Flexible Seeks maximum total return, consistent with Janus Capital
Income Subaccount preservation of capital by investing in a variety
of income-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 securities, and
these may be a big part of the portfolio.
- ---------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Seeks long-term growth of capital by investing Janus Capital
International Growth under normal circumstances at least 80% of its
Subaccount net assets in securities of issuers from at least five
different countries, excluding the United States.
It intends to invest substantially all of its assets in
issuers located outside the United States but 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.
- ---------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Strategic Seeks long-term growth of capital by investing Janus Capital
Value Subaccount primarily in common stocks with the potential
for long-term growth of capital using a "value"
approach. The value approach emphasizes
investment in companies the portfolio manager
believes are undervalued relative to their
intrinsic worth.
- ---------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Seeks long-term growth of capital in a manner Janus Capital
Worldwide Growth consistent with the preservation of capital by
Subaccount investing primarily in common stocks of
companies of any size throughout the world.
Normally invests in issuers from at least five
different countries, including the United States
but may at times invest in fewer than five
countries or even in a single country.
- ---------------------------------------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND
- ---------------------------------------------------------------------------------------------------------------------
Lord Abbett Bond-Debenture Investment Objective and Strategy: seeks high Lord, Abbett & Co. LLC
Subaccount current income and the opportunity for capital
appreciation to produce a high total return. It
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 80% of its
net 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.
- ---------------------------------------------------------------------------------------------------------------------
14
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- -------------------------------------------------------------------------------------------------------------
Lord Abbett Mid-Cap Value Investment Objective and Strategy: seeks Lord, Abbett & Co. LLC
Subaccount capital appreciation. It pursues its objective by
investing at least 80% of its net assets in equity
securities of mid-sized companies, with market
capitalizations of roughly $500 million to $10
billion at the time of purchase. This market
capitalization range may vary in response to
changes in the markets.
- -------------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE INSURANCE TRUST/SM/
- -------------------------------------------------------------------------------------------------------------
MFS New Discovery Seeks capital appreciation by investing at least Massachusetts Financial
Subaccount 65% of its net assets in equity securities of Services Company
emerging growth companies. Emerging growth
companies are companies that are either: early
in their life cycle 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 Seeks mainly to provide above-average income Massachusetts Financial
Subaccount consistent with the prudent employment of Services Company
capital and secondarily to provide a reasonable
opportunity for growth of capital and income.
It pursues its 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 Massachusetts Financial
investing at least 80% of its net assets in equity Services Company
and debt securities of domestic and foreign
companies (including emerging markets) in the
utilities industry.
- -------------------------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
- -------------------------------------------------------------------------------------------------------------
MONY Government Seeks to maximize income and capital MONY Life Insurance
Securities Subaccount appreciation by investing in bonds, notes and Company of America
other obligations either issued or guaranteed
by the U.S. Government, its agencies or
instrumentalities, together having a dollar
weighted average maturity of between 4 to 8
years.
- -------------------------------------------------------------------------------------------------------------
MONY Intermediate Term Seeks to maximize income and capital MONY Life Insurance
Bond Subaccount appreciation over the intermediate term by Company of America
investing in highly rated fixed-income
securities issued by a diverse mix of
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 between 4 and 8 years.
- -------------------------------------------------------------------------------------------------------------
15
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- ---------------------------------------------------------------------------------------------------------------
MONY Long Term Bond Seeks to maximize income and capital MONY Life Insurance
Subaccount appreciation over the longer term by investing Company of America
in highly-rated fixed-income securities issued
by a diverse mix of 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.
- ---------------------------------------------------------------------------------------------------------------
PIMCO VARIABLE INSURANCE TRUST
- ---------------------------------------------------------------------------------------------------------------
PIMCO Global Bond Seeks to maximize total return, consistent with Pacific Investment
Subaccount preservation of capital, by investing primarily Management Company LLC
in Fixed Income Instruments of issuers located
in at least three countries (one of which may
be the United States).
- ---------------------------------------------------------------------------------------------------------------
PIMCO Real Return Seeks to maximize real return, consistent with Pacific Investment
Subaccount preservation of real capital, by investing Management Company LLC
primarily in inflation-indexed bonds of varying
maturities issued by the U.S. and non-U.S.
governments, their agencies or government-
sponsored enterprises and corporations.
- ---------------------------------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY SERIES, INC.
- ---------------------------------------------------------------------------------------------------------------
T. Rowe Price Equity Income Seeks substantial dividend income as well as T. Rowe Price Associates,
Subaccount long-term growth of capital through Inc.
investments in the common stocks of
established companies. The manager will
normally invest at least 80% of the fund's net
assets in common stocks, with 65% in the
common stocks of well-established companies
paying above-average dividends.
- ---------------------------------------------------------------------------------------------------------------
T. Rowe Price Mid-Cap Seeks to provide long-term capital appreciation T. Rowe Price Associates,
Growth Subaccount by investing in mid-cap stocks with potential for Inc.
above-average earning growth. At least 80% of
net assets will be invested in a diversified
portfolio of common stocks of mid-cap
companies whose earnings T. Rowe Price
expects to grow at a faster rate than the average
company. Mid-cap is defined as those
companies whose market cap falls within the
range of either the S&P MidCap 400 Index or
the Russell Midcap Growth Index.
- ---------------------------------------------------------------------------------------------------------------
T. Rowe Price Personal Seeks the highest total return over time T. Rowe Price Associates,
Strategy Balanced Subaccount consistent with an emphasis on both capital Inc.
appreciation and income by investing in a
diversified portfolio typically consisting of
approximately 60% stocks, 30% bonds, and
10% money market securities.
- ---------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
- ---------------------------------------------------------------------------------------------------------------
Morgan Stanley UIF Core Seeks above-average total return over a market Morgan Stanley Investment
Plus Fixed Income cycle of three to five years by investing Management Inc. is the
Subaccount primarily in a diversified portfolio of fixed investment adviser to The
income securities. Universal Institutional
Funds, Inc.
- ---------------------------------------------------------------------------------------------------------------
16
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- --------------------------------------------------------------------------------------------------------------
Morgan Stanley UIF Seeks high total return by investing primarily in Morgan Stanley Investment
Emerging Markets Debt fixed income securities of government and Management Inc. is the
Subaccount government-related issuers, and, to a lesser investment adviser to the
extent, of corporate issuers in emerging market Universal Institutional Funds,
countries. Inc.
- --------------------------------------------------------------------------------------------------------------
Morgan Stanley UIF Seeks long-term capital appreciation by Morgan Stanley Investment
Emerging Markets Equity investing primarily in growth-oriented equity Management Inc. is the
Subaccount securities of issuers in emerging market investment adviser to The
countries. Universal Institutional Funds,
Inc.
- --------------------------------------------------------------------------------------------------------------
Morgan Stanley UIF Equity Seeks long-term capital appreciation by Morgan Stanley Investment
Growth Subaccount investing primarily in growth-oriented equity Management Inc. is the
securities of large capitalization companies. investment adviser to The
Universal Institutional Funds,
Inc.
- --------------------------------------------------------------------------------------------------------------
Morgan Stanley UIF Global Seeks long-term capital appreciation by Morgan Stanley Investment
Value Equity Subaccount investing primarily in equity securities of Management Inc. is the
issuers throughout the world, including U.S. investment adviser to The
issuers. Universal Institutional Funds,
Inc.
- --------------------------------------------------------------------------------------------------------------
Morgan Stanley UIF Value Seeks above-average total return over a market Morgan Stanley Investment
Subaccount cycle of three to five years by investing primarily Management Inc. is the
in a portfolio of common stocks and other equity investment adviser to The
securities. Universal Institutional Funds,
Inc.
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
VANGUARD(R) Variable Insurance Fund
- --------------------------------------------------------------------------------------------------------------
Vanguard VIF Balanced Seeks to conserve capital and to provide moderate, The Vanguard Group
Subaccount long-term growth of capital and income. (subadvised by Wellington
Management Company, LLP)
- --------------------------------------------------------------------------------------------------------------
Vanguard VIF Diversified Seeks to provide long-term growth of capital. The Vanguard Group
Value Subaccount As a secondary objective, seeks to provide (subadvised by Barrow,
some dividend income. Hanley, Mewhinney &
Strauss, Inc.)
- --------------------------------------------------------------------------------------------------------------
Vanguard VIF Equity Seeks to provide a relatively high level of The Vanguard Group
Income Subaccount current income and the potential for long-term (subadvised by Newell
growth of capital and income. Associates)
- --------------------------------------------------------------------------------------------------------------
Vanguard VIF Equity Index Seeks to provide long-term growth of capital The Vanguard Group
Subaccount and income by attempting to match the
performance of a broad-based market index of
stocks of large U.S. companies.
- --------------------------------------------------------------------------------------------------------------
17
Adviser
Subaccount Investment Objective (and Sub-Adviser, as applicable)
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Growth Seeks to provide long-term growth of capital. The Vanguard Group
Subaccount (subadvised by
Alliance Capital
Management L.P.)
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF High Yield Seeks to provide a high level of income. The Vanguard Group
Bond Subaccount (subadvised by
Wellington Management
Company, LLP)
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Seeks to provide long-term growth of capital. The Vanguard Group
International Subaccount (subadvised by
Schroder Investment
Management North
America Inc.)
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Mid-Cap Seeks to provide long-term growth of capital by The Vanguard Group
Index Subaccount attempting to match the performance of a
broad-based market index of stocks of medium-
size U.S. companies.
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Money Seeks to provide income while maintaining The Vanguard Group
Market Subaccount liquidity and a stable share price of $1.
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF REIT Index Seeks to provide a high level of income and The Vanguard Group
Subaccount moderate long-term growth of capital.
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Short-Term Seeks to provide a high level of income and to The Vanguard Group
Corporate Subaccount preserve contract owners' principal.
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Small Seeks to provide long-term growth of capital. The Vanguard Group
Company Growth (subadvised by
Subaccount Granahan Investment
Management, Inc. and
Grantham, Mayo,
Van Otterloo & Co. LLC)
- ---------------------------------------------------------------------------------------------------------
Vanguard VIF Total Bond Seeks to provide a higher level of income by The Vanguard Group
Market Index Subaccount attempting to match the performance of a broad
market-weighted bond index.
- ---------------------------------------------------------------------------------------------------------
Purchase of Portfolio Shares by MONY Variable Account L
The Company purchases shares of each portfolio for the corresponding
subaccount 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 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.
18
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.
The investment objectives of each portfolio are substantially similar to the
investment objectives of the subaccount which purchases shares of that
portfolio. 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 Company has entered into agreements with either the investment adviser
or distributor of each of the Funds under which the adviser or distributor pays
us a fee ordinarily based upon a percentage of the average aggregate amount we
have invested on behalf of Variable Account L and other separate accounts.
These percentages differ, and some investment advisers or distributors pay us a
greater percentage than other advisers or distributors. These agreements
reflect administrative services we provide. The amounts we receive under these
agreements may be significant.
In addition, our affiliate, MONY Securities Corporation, the principal
underwriter for the policies, will receive 12b-1 fees deducted from certain
portfolio assets attributable to the policies for providing distribution and
shareholder support services to some of the portfolios. Because the 12b-1 fees
are paid out of a portfolio's assets on an ongoing basis, over time they will
increase the cost of an investment in portfolio shares.
The Funds' prospectuses accompany this prospectus and should be read
carefully before investing.
DETAILED INFORMATION ABOUT THE POLICY
The Account Value in MONY Variable Account L and the Guaranteed Interest
Account provide many of the benefits of the 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 Account
Value. There may be differences in your policy such as differences in fees,
charges and benefits because of the state or market where we issued your
Policy. We will include any such differences in your policy.
Application for a Policy
The policy design meets the needs of individuals and corporations that wish
to purchase life insurance benefits on the lives of key employees, members of
the employer's board of directors, certain selected independent contractors, or
certain selected highly compensated employees. The policy may be sold together
with other related policies forming a case. 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 not less than 18 years of age and up to
and including 80 years of age with evidence of insurability that satisfies the
Company. The age of the insured is the age on his or her birthday nearest the
date of the policy. The Company accepts the application subject to its
underwriting rules, and may request additional information or reject an
application.
19
The minimum Target Death Benefit is generally $100,000. The minimum
Specified Amount you may apply for is $100,000. The Specified Amount may be
reduced to $50,000 if at least $50,000 amount of Adjustable Term Insurance
Rider is added to the policy. However, the Company reserves the right to revise
its rules at any time to require a different minimum Specified Amount and
Target Death Benefit 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.
Tax-Free 'Section 1035' Exchanges
The policy owner can generally exchange one life policy for another in a
'tax-free exchange' under Section 1035 of the Internal Revenue Code. Before
making an exchange, the policy owner should compare both policies carefully.
Remember that if you exchange another policy for the one described in this
prospectus, you might have to pay a surrender charge on the old policy. The
other charges may be higher (or lower) for this policy and the benefits may be
different. If the exchange does not qualify for Section 1035 treatment, the
policy owner may have to pay federal income tax and penalty taxes on the
exchange. The policy owner should not exchange another policy for this one
unless he or she determines, after knowing all the facts, that the exchange is
in the policy owner's best interest and not just better for the person trying
to sell the policy owner this policy (that person will generally earn a
commission if the policy owner buys this policy through an exchange or
otherwise).
Temporary Insurance Coverage
A Life Insurance Binder Agreement is available for use as a receipt of
premium and to effect coverage prior to the issuance of any policies. It is
designated to provide a specific amount of coverage for a limited period of
time. Typically, this coverage will not exceed $2,000,000 nor will it usually
extend beyond 90 days. There is an additional premium for the Life Insurance
Binder Agreement.
Initial Premium Payment
Once the application is approved and the policy owner is issued a policy,
the balance of the first scheduled premium payment is payable and should be
sent to our Operations Center at 1 MONY Plaza, Syracuse, New York, 13221. The
scheduled premium payment 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. If you do not request a policy date or if the policy date
you request is earlier than the Policy Release Date, any premium balance you
remit will be transferred to the general account of the company until the Right
to Return Policy Period has ended. The amount transferred would include amounts
in the general account under the Binder 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, the premium will be held in the general account until the
policy date. On the Policy Date, premiums will be transferred to the Guaranteed
Interest Account until the Right to Return Policy Period ends. When the Right
to Return Policy Period ends, we will allocate the premium plus interest
credited, less any monthly deductions that may apply, among the subaccounts of
MONY Variable Account L, the Guaranteed Interest Account, and the general
account pursuant to your instructions. (See "Right to Examine a Policy -- Right
to Return Policy Period.")
Policy Date
The Company may approve the backdating of a policy. However, the policy may
be backdated for not more than 6 months prior to the date of the application.
Backdating can be advantageous 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
20
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 (excluding mortality and expense charge).
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 any proposed insured that does not meet the Company's guaranteed issue
standards. The Company may use guaranteed issue underwriting when it is
considered appropriate.
Right to Examine a Policy -- Right to Return Policy Period
The Right to Return Policy Period follows the application for a policy and
its issuance to the policy owner. The period runs to the latest of:
(a) 45 days after Part I of the application is signed, or
(b) 10 days after the policy owner receives the policy, or
(c) 10 days after the Company mails or personally delivers a notice of
withdrawal right to the policy owner.
During this period, the policy owner may cancel the policy.
Premiums
The policy is a flexible premium policy. The policy provides considerable
flexibility to the policy owner to determine the amount and frequency of
premium payments.
Premium Flexibility
The Company requires you to pay an amount equal to at least one fourth of
the Minimum Annual Premium to put the policy in effect. If the policy owner
wants to pay premiums less often than annually, the premium required to put the
policy in effect is equal to the lesser of:
(a) The Minimum Annual Premium divided by the frequency of the scheduled
premium payments, or
(b) 25% of the Minimum Annual Premium.
This Minimum Annual 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 Account Value-Cost of Insurance"), and
(d) Underwriting class.
The Minimum Annual Premium will be shown in the policy. Thereafter, subject
to the limitations described below, the policy owner may choose the amount and
frequency of premium payments to reflect varying financial conditions.
21
Case Premiums
The Company may, in its sole discretion, allow a reduced minimum case
premium where the Company's rules for exceptions are met. Generally, to issue a
policy, the Company requires the premiums for the first policy year for the
policy or policies representing a case to equal or exceed $100,000.
Scheduled Premiums
When applying for a policy, a policy owner determines a scheduled premium
payment. This scheduled premium payment provides for the payment of level
premiums at fixed intervals over a specified period of time. Each policy owner
will receive a premium reminder notice for the scheduled premium payment amount
on an annual, semiannual, quarterly or monthly basis, at the policy owner's
option. After the Minimum Annual Premium has been paid, the minimum scheduled
premium for any policy is $100. Although reminder notices will be sent, the
policy owner may not be required to pay scheduled premium payments.
Payment of the scheduled premium payments will not guarantee that your
policy will remain in effect. (See "Grace Period and Lapse".)
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 Account 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 Cash Value. In general, as your policy's Cash 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 required
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 is calculated using the guaranteed mortality charges and an
interest rate that is the greater of 4% or the rate guaranteed in your policy
at the time of issue. If the Cash Value Accumulation Test is selected, a table
of death benefit percentages representing the net single premium will be in
your policy.
Guideline Premium/Cash Value Corridor Test
If you choose the Guideline Premium/Cash Value Corridor Test, we calculate
the minimum death benefit for your policy to qualify as life insurance (under
Section 7702 of the Internal Revenue Code) by multiplying your policy's Cash
Value by a death benefit percentage.
22
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. When the insured is age 40 or younger the percentage is 250%,
which is reduced as the person gets older.
Under this test, the total premiums you pay less withdrawals cannot exceed
your policy's guideline premium limit.
Guaranteed Death Benefit
Generally, the policy remains in effect so long as the Account Value less
Outstanding Debt is sufficient to pay the charges that maintain the policy. The
charges that maintain the policy are deducted monthly from the Account Value.
The Account Value of the policy is affected by:
(1) the investment experience of any amounts in the subaccounts of MONY
Variable Account L,
(2) the interest earned in the Guaranteed Interest Account, and
(3) the deduction from Account Value of the various charges, costs, and
expenses imposed by the policy provisions.
This in turn affects the length of time the policy remains in effect without
the payment of additional premiums. See "Grace Period and Lapse".
When the policy owner applies for a policy, the policy owner will be able to
choose the Guaranteed Death Benefit Rider. The Rider may extend the period that
the Specified Amount of the policy and certain other rider coverages will
remain in effect if the subaccounts suffer adverse investment experience. See
"Guaranteed Death Benefit Rider".
Modified Endowment Contracts
The amount, frequency and period of time over which the policy owner pays
premiums may affect whether the 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 the policy
owner takes certain pre-death distributions from the policy. See "Tax
Considerations".
Unscheduled Premium Payments
Generally, the policy owner may make premium payments at any time and in any
amount as long as each payment is at least $250. However, if the premium
payment the policy owner wishes 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 equals a policy
owner's Cash Value (plus any applicable Enhanced Cash Value) multiplied by a
death benefit percentage as a result of the federal income tax law definition
of life insurance. See "Death Benefits Under the Policy," and "Tax
Considerations". However, such a premium may be accepted if satisfactory
evidence of insurability is provided. If it 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 the policy owner if it exceeds the maximum
premium limitations prescribed by the federal income tax law definition of life
insurance.
Payments the policy owner sends to us will be treated as premium payments,
and not as repayment of Outstanding Debt, unless the policy owner requests
otherwise. If the policy owner requests 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 applied to the Account Value. Applicable taxes and
sales charges are only deducted from any payment that constitutes a premium
payment.
23
Premium Payments Affect the Continuation of the Policy
If the policy owner skips or stops paying premiums, the policy will continue
in effect until the Account Value less any Outstanding Debt can no longer cover
(1) the monthly deductions from the Account Value for the policy, and (2) the
charges for any optional insurance benefits added by rider. See "Grace Period
and Lapse."
The policy owner's Specified Amount is guaranteed to remain in effect as
long as a Guaranteed Death Benefit Rider is in effect. See "Guaranteed Death
Benefit Rider".
Allocation of Net Premiums
Net premiums may be allocated to any number of the available subaccounts and
to the Guaranteed Interest Account. Allocations must be in at least 1/100%.
Allocation percentages must equal 100%.
The policy owner may change the allocation of net premiums at any time by
writing our Operations Center. The revised allocation percentages will be
effective on the Valuation Date that we receive them.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 1/100%
limit on allocation percentages does not apply.
Death Benefits under the Policy
When the policy is issued, the Company will determine the initial amount of
insurance based on the instructions provided in the application. The death
benefit consists of a "Specified Amount" of insurance coverage and, if desired,
an additional amount of insurance coverage which is added by Adjustable Term
Insurance Rider. The amount of the Adjustable Term Insurance Rider is defined
by the Target Death Benefit. The Specified Amount is level until the Maturity
Date unless changed by the policy owner. The Target Death Benefit can be
scheduled at issue in level or increasing amounts over the lifetime of the
insured. The minimum Target Death Benefit is generally $100,000. The minimum
Specified Amount is $100,000, although the Specified Amount may be reduced to
$50,000 if at least $50,000 of Adjustable Term Insurance Rider is added to the
Policy. The Target Death Benefit and the Specified Amount will be shown on the
specifications page of the policy.
As described below, over time the base death benefit may vary from the
Specified Amount. This may result from:
(1) The operation of a death benefit Option,
(2) Increases to comply with the federal income tax law definition of
life insurance,
(3) Changes in the death benefit Option, or
(4) Increases or decreases requested by the policy owner.
The Adjustable Term Insurance Rider provides term insurance coverage which
adjusts automatically to equal the difference between the Target Death Benefit
and the base death benefit. The Adjustable Term Insurance Rider does not have a
separate premium; the cost is included in the monthly deductions discussed
below. Depending on your circumstances, it may be more cost efficient for you
to purchase term insurance rather than increase your Specified Amount. See
"Adjustable Term Insurance Rider".
As long as the Policy remains in effect, the Company will, upon proof of the
death of an Insured, pay the death benefit proceeds to the named beneficiary.
Death benefit proceeds will consist of:
(1) The base death benefit under the policy, plus
(2) Any amount provided by the Adjustable Term Insurance Rider, less
(3) Any Outstanding Debt (and, if in the Grace Period, further reduced by
any overdue charges).
24
Death benefit proceeds may be paid to a Beneficiary in a lump sum or under a
payment plan offered under the Policy. We pay interest on the death benefit at
an annual rate of at least 2.75% from the date of the insured's death until the
date we pay the benefit. The Policy should be consulted for details.
Death Benefit Options
Each policy owner may select one of two death benefit Options: Option 1 or
Option 2. Generally, the policy owner designates the death benefit option in
the 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 the policy is in effect, the death benefit
under either option will never be less than the Specified Amount of the policy.
Option 1 -- The base death benefit equals the greater of:
(a) The Specified Amount in force on the date of death plus any increase
in Account Value since the last monthly anniversary day, or
(b) The Cash Value (plus any applicable Enhanced Cash Value) on the date
of death multiplied by a death benefit percentage.
The death benefit percentages vary according to the age of the insured and
will be at least equal to the percentage defined in the Internal Revenue Code.
The Internal Revenue Code addresses the definition of a life insurance policy
for tax purposes. See "Tax Considerations". If you select the Guideline
Premium/Cash Value Corridor Test, the death benefit percentage is 250% for
insureds 40 or under, and it declines for older insureds. 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 Account Value, and not in increasing insurance coverage, you should
choose Option 1.
Option 2 -- The death benefit equals the greater of:
(a) The Specified Amount in force on the date of death of the policy,
plus the Account Value on the date of death, or
(b) The Cash Value (plus any applicable Enhanced Cash Value) on the date
of death multiplied by a death benefit percentage.
The Account Value used in these calculations is determined as of the date of
the insured's death. The death benefit percentage is the same as that used for
Option 1 and is stated in Appendices A or B. The death benefit in Option 2 will
always vary as Account Value varies. If you seek to have favorable investment
performance reflected in increased insurance coverage, you should choose Option
2.
In addition, the policy owner has the option at issue to select an Alternate
Death Benefit Percentage. The Alternate Death Benefit Percentage may produce a
higher base death benefit amount beginning the later of the Insured's age 55 or
10 years following policy issue. This Alternate Death Benefit Percentage grades
back to the federal income tax law Death Benefit Percentage at the Maturity
Date. Use of the Alternate Death Benefit Percentage results in a higher ratio
of base death benefit to Account Value than that resulting from the use of the
IRS' Death Benefit Percentage beginning the later of the Insured's age 55 or 10
years following Policy issue. This higher percentage then gradually reduces
until, by the Maturity Date, it is equal to the ratio produced by the use of
the IRS' Death Benefit Percentage. Although use of the Alternate Death Benefit
Percentage results in a higher base death benefit than the IRS' Death Benefit
Percentage, this higher base death benefit results in higher cost of insurance
charges which has the effect of reducing the Account Value and consequently
future base death benefits. The election of the Alternate Death Benefit
Percentage may be eliminated at any time; once eliminated, it cannot be
reinstated. (See Appendix B, E, and F for Alternate Death Benefit percentages.)
Changes in Death Benefit Option
The policy owner may request that the death benefit option under your policy
be changed from Option 1 to Option 2, or Option 2 to Option 1. The policy owner
may make a change by sending a written request to the
25
Company's Operations Center. 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 satisfactory evidence of insurability. The effective date of a change
requested between monthly anniversaries will be the next monthly anniversary
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 Account Value at the date of the change.
This maintains the base death benefit payable under Option 2 at the amount that
would have been payable under Option 1 immediately prior to the change. The
total base death benefit will not change immediately. The change to Option 2
will affect the determination of the base death benefit from that point on. As
of the date of the change, the Account Value will be added to the new Specified
Amount. The death benefit will then vary with the Account Value. This change
will not be permitted if it would result in a new Specified Amount of less than
$100,000.
If you change from Option 2 to Option 1, the Specified Amount of the policy
will be increased by the amount of the policy's Account Value at the date of
the change. This maintains the base death benefit payable under Option 1 at the
amount that would have been payable under Option 2 immediately prior to the
change. The total base death benefit will not change immediately. The change to
Option 1 will affect the determination of the base death benefit from that
point on. The change to Option 1 will generally reduce the death benefit
payable in the future.
Increases in the Specified Amount resulting from a change in death benefit
Option do not create new coverage segments. They increase the size of the
oldest coverage segments of the Specified Amount. Therefore, cost of insurance
and other charges are not computed separately for increases resulting from a
death benefit Option change.
Decreases due to a death benefit Option change will not reduce the Target
Death Benefit but may reduce the Specified Amount. Any decrease associated with
an Option change will maintain the net amount at risk for each coverage layer
at the time of the change.
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 base death benefit
exceeds Account Value. See "Deductions from Account Value -- Cost of
Insurance." If the policy's base 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 Death Benefit Amounts
The policy owner may increase or decrease the Target Death Benefit subject
to Company approval. The Target Death Benefit is the Specified Amount plus the
benefit amount of the Term Insurance Rider. Increases or decreases in the
Target Death Benefit can be done on a scheduled or unscheduled basis.
Scheduled Increases in Target Death Benefits
Increases to the Target Death Benefit may be scheduled:
(1) At the time of application for the policy, or
(2) At the time of the application for an unscheduled increase.
Scheduled increases will be effective on the requested date. A scheduled
increase may only be made by increasing the amount of the Adjustable Term
Insurance Rider. Since these increases are scheduled at issue,
26
evidence of insurability will not be required at the time the increase becomes
effective. Scheduled increases do not create new "coverage segments."
Therefore, cost of insurance and other charges are not computed separately for
such increases.
Unscheduled Increases in Target Death Benefit
A policy owner may request an unscheduled increase in the Target Death
Benefit at any time after issue prior to the insured's age 81 (or age 70 for
policies issued on a guaranteed basis). Additional evidence of insurability
satisfactory to the Company will be required. An unscheduled increase will not
be given for increments less than $10,000. Requests for an unscheduled increase
must be made by written application to the Operations Center. The increase will
become effective on the monthly anniversary that coincides with or follows the
approval of the request by the Company.
An unscheduled increase in the Target Death Benefit may consist of any
combination of increases in Specified Amount and/or Adjustable Term Insurance
Rider.
. Unless otherwise indicated, any request for an unscheduled increase to the
Target Death Benefit will be assumed to be a request for an increase to
the Specified Amount.
. An unscheduled increase in Specified Amount will increase the Target Death
Benefit by an equal amount so that the Adjustable Term Insurance Rider
amount will remain unchanged after the increase.
An unscheduled increase in Specified Amount will create a new "coverage
segment" for which cost of insurance and other charges are computed separately.
If the Specified Amount is increased:
. Additional sales charges associated with the increase will be incurred.
. The sales charge for the increase is calculated in a similar way as for
the original Specified Amount. Premiums paid after the increase will be
allocated to the original and the new coverage segments in the same
proportion that the guideline annual premiums (defined by the federal
income tax laws) for each segment bear to the sum of the guideline annual
premiums for all segments.
. The Company deducts a Sales Charge from each premium allocated to each
segment up to the "Target Premium" paid in each year during the first ten
policy years following an increase in Specified Amount.
. The Target Premiums and the required premiums under the Guaranteed Death
Benefit Rider, if applicable, will also be adjusted.
. The adjustment will be done prospectively to reflect the increase.
. If the Specified Amount is increased at the same time that a premium
payment is received, the increase will be processed before the premium
payment is processed.
If an unscheduled increase creates a new coverage segment of Specified
Amount, the Account 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.
(3) Allocations will be in the same proportion that the guideline annual
premiums (defined by the federal income tax laws) for each segment bear to
the sum of the guideline annual premiums for all segments.
Increasing the Specified Amount will generally increase the base death
benefit of the policy. The amount of the change in the base death benefit will
depend, among other things, on:
(1) The death benefit Option chosen by the policy owner, and
27
(2) Whether the base death benefit under the policy is being calculated
using a Death Benefit Percentage at the time of the change.
Changing the Specified Amount could affect:
(1) The subsequent level of the base death benefit while the policy is in
effect, and
(2) The subsequent level of policy values.
For example, an increase in Specified Amount may increase the net amount at
risk under a policy, which will increase a policy owner's cost of insurance
charges over time.
Decreases In Target Death Benefits
Any decrease in Specified Amount will reduce the Target Death Benefit of the
policy and may reduce the Specified Amount of the policy at issue. Any decrease
will be applied:
(1) First to reduce the coverage segments of Adjustable Term Insurance
Rider associated with the most recent increases, then
(2) To the next most recent increases of Adjustable Term Insurance Rider
successively, and last
(3) To the original coverage segment of Adjustable Term Insurance Rider.
After all coverage segments of Adjustable Term Insurance Rider have been
entirely eliminated, then coverage segments of the Specified Amount will be
reduced in a similar order. A decrease will not be permitted if less than
$10,000. In addition, no transaction will be permitted if the Specified Amount
would fall below the required minimum to issue the policy at the time of the
reduction.
The required premiums under the Guaranteed Death Benefit Rider, if
applicable, will be adjusted for the decrease in death benefits. If the Target
Death Benefit or Specified Amount is decreased, target premiums will also be
adjusted for the decrease. If the Target Death Benefit is decreased at the same
time that a premium payment is received, the decrease will be processed before
the premium payment is processed. Decreases become effective on the monthly
anniversary following the approval of the request by the Company.
The Company reserves the right to reject a requested decrease. Decreases
will not be permitted if the decrease would result in a Specified Amount or
Target Death Benefit which is less than the Specified Amount or Target Death
Benefit the Company then allows. If a requested change is not approved, we will
send you a written notice of our decision. See "Tax Considerations."
Decreasing the Specified Amount will generally decrease the base death
benefit. The amount of change in the base death benefit will depend, among
other things, on:
(1) The death benefit Option chosen, and
(2) Whether the base death benefit under the policy is being calculated
using a death benefit percentage at the time of the change.
Changing the Specified Amount could affect the subsequent level of the base
death benefit while the policy is in effect and the subsequent level of policy
values. For example, a decrease in Specified Amount may decrease the net amount
at risk, which will decrease a policy owner's cost of insurance charges over
time.
Decreases due to a death benefit Option change will not reduce the Target
Death Benefit but may reduce the Specified Amount. Any decrease associated with
an Option change will maintain the net amount at risk for each coverage layer
at the time of the change.
28
Adjusting the Death Benefit may have tax consequences. You should consult a
tax adviser before adjusting the Death Benefit.
Guaranteed Death Benefit Rider
When the policy owner applies for a policy, the policy owner may also elect
the Guaranteed Death Benefit Rider. This Rider may extend the period the
Specified Amount of the policy remains in effect and requires that premiums
(less any partial surrenders and their fees) at least equal to the cumulative
Monthly Guaranteed Premium must have been paid and the Account Value of the
Policy must exceed Outstanding Debt for the Rider to remain in effect.
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
insured's age 95 ("Guarantee Period"). An extra charge will be deducted from
the Account 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 "Deductions from Account Value -- Guaranteed Death Benefit
Charge."
On each monthly anniversary day we test to determine whether you have paid
the amount of premiums required to keep the Guaranteed Death Benefit Rider in
effect. To remain in effect, we make two tests. Under the first test the
Account Value must exceed Outstanding Debt. Under the second test, we:
(1) total the actual premiums you have paid for the policy, and
(2) subtract the amount of partial surrenders (and associated fees).
The result must equal or exceed:
(1) the Monthly Guarantee Premium for the Rider, times
(2) the number of complete months since the policy date.
If the policy meets both tests on the monthly anniversary day, the Rider
remains in effect until the next monthly anniversary date. If the policy fails
to meet either test, 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." 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 Rider Is in Effect."
Please refer to the policy for additional information on the Guaranteed
Death Benefit Rider.
Other Optional Insurance Benefits
Subject to certain requirements, you may elect to add one or more of the
optional insurance benefits described below. Optional insurance benefits are
added when you apply for your policy. These other optional benefits are added
to your policy by an addendum called a Rider. A charge is deducted monthly from
the Account Value for each optional benefit added to your policy. See "Charges
and Deductions." The amounts of these benefits are fully guaranteed at issue.
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 "Tax Considerations." An insurance agent authorized to sell the
policy can describe these extra benefits further.
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.
29
Adjustable Term Insurance Rider
The policy can be issued with an Adjustable Term Insurance Rider as a
portion of the total death benefit. This Rider provides term life insurance on
the life of the insured, which is annually renewable to attained age 80. As
described below, the amount of coverage provided by the Rider varies over time.
When the policy is issued, a schedule of death benefit amount called the
"Target Death Benefit" is established. The Target Death Benefit may be varied
as often as each policy year, and subject to the Company's rules, may be
changed after issue. See "Death Benefits Under the Policy."
The amount of the Adjustable Term Insurance Rider in effect at any time is
equal to the difference between the scheduled Target Death Benefit and the base
death benefit in effect. The Rider is dynamic, it adjusts for variations in the
base death benefit under the policy (e.g., changes resulting from the federal
income tax law definition of life insurance). The Company generally restricts
the amount of the Target Death Benefit at issue to an amount not more than 900%
of the Specified Amount. For example, if the Specified Amount is $100,000 then
the maximum amount of the Target Death Benefit allowed is $900,000.
For example, assume the base death benefit varies according to the following
schedule. The Adjustable Term Insurance Rider will adjust to provide death
proceeds equal to the Target Death Benefit each year.
Term Insurance Rider
Base Death Benefit Target Death Benefit Amount
------------------ -------------------- --------------------
$500,000 $550,000 $50,000
$501,500 $550,000 $48,500
$501,250 $550,000 $48,750
Since the Adjustable Term Insurance Rider is dynamic, it is possible that
the Rider may be eliminated entirely as a result of increases in the base death
benefit. Using the above example, if the base death benefit grew to $550,000,
the Adjustable Term Insurance Rider would be reduced to zero. (It can never be
reduced below zero.) Even though the Rider amount is reduced to zero, the Rider
will remain in effect until it is removed from the policy. Therefore, if the
base death benefit is subsequently reduced below the Target Death Benefit, a
Rider amount will reappear as needed to maintain the Target Death Benefit at
the requested level.
There is no defined premium for the Adjustable Term Insurance Rider. The
cost of the Rider is added to the monthly deductions, and is based on the
insured's attained age and premium class. The Company may adjust the rate
charged for the Rider from time to time, but any rate will remain the same for
one year. The rate will never exceed the guaranteed cost of insurance rates for
the Rider for that policy year. The cost for the Rider is added to the
Company's calculation of the Monthly Guarantee Premium and to the calculation
of the Minimum Annual Premium.
There may be times in which it will be to your economic advantage to include
a significant portion of your insurance coverage under a term rider. These
circumstances depend on many factors, including the premium levels and amounts
and duration of coverage you choose, as well as the age, sex, and rate class of
the insured.
Benefits at Maturity
The maturity date for this policy is the policy anniversary on which the
insured is age 95. If the insured is living on the maturity date, the Company
will pay to you, as an endowment benefit, the Account Value of the policy less
Outstanding Debt. Ordinarily, the Company pays within seven days of the policy
anniversary. Payments may be postponed in certain circumstances. See "Payments."
At your option, payment of the benefit may be deferred until the date of the
insured's death. Death proceeds payable immediately after the maturity date
equal the Surrender Value (as defined below under "Policy Values") of the
policy multiplied by the death benefit percentage at the insured's age 95.
Premiums will not be accepted, nor will monthly deductions be made, after the
maturity date.
30
The tax consequences of continuing the policy beyond the insured's 95th year
are unclear. You should consult a tax adviser if you intend to keep a policy in
force beyond the insured's 95th year.
Enhanced Cash Value Rider
At no cost to you, the Company will add the applicable Enhanced Cash Value
Rider to your policy when the policy is issued. During the first eight policy
years, this benefit will increase your Cash Value when you make a full
surrender of the policy. The Company will also use this increase to compute
your death benefit. This enhanced amount, however, is not added to your Account
Value should you make a partial surrender or take a loan from your policy, or
if you purchased your policy by means of an exchange.
Specifically, during the first eight policy years (and if the conditions of
the Rider are met), the Company will increase the amount payable upon full
surrender of the policy by a maximum additional percentage of Cash Value in
each policy year as follows:
Enhanced Cash Value
Policy Year Percentage
----------- ----------
1 5.0%
2 7.0%
3 7.0%
4 6.0%
5 5.0%
6 3.0%
7 2.0%
8 1.0%
9 and later 0.0%
The Company will continue to deduct any Outstanding Debt from the amount
payable at full surrender.
Coverage under the Enhanced Cash Value Rider will end on the earliest of (a)
the date your policy goes out of force, (b) the eighth policy anniversary of
your policy, or (c) the Valuation Date we receive your request to terminate the
Rider. Please see the Rider for more details.
Policy Values
Account Value
The Account Value is the sum of the amounts under the policy held in each
subaccount of MONY Variable Account L and any Guaranteed Interest Account. It
also includes the amount set aside in the Company's loan account, and any
interest, to secure Outstanding Debt.
On each Valuation Date, the part of the Account Value allocated to any
particular subaccount is adjusted to reflect the investment experience of that
subaccount. On each monthly anniversary day, the Account Value also is adjusted
to reflect the assessment of the monthly deduction. See "Determination of
Account Value". No minimum amount of Account Value allocated to a particular
subaccount is guaranteed. A policy owner bears the risk for the investment
experience of Account Value allocated to the subaccounts. Please note: during
extended periods of low interest rates, the yields of the money market
subaccount may become extremely low and possibly negative.
Surrender Value
The owner can surrender a policy at any time while the insured is living and
receive its Cash Value less any Outstanding Debt. If you surrender your policy
during the first eight policy years, you may be eligible to have an enhanced
cash value percentage added to your Cash Value. See "Enhanced Cash Value Rider"
above. The Cash
31
Value of the policy equals the Account Value plus any applicable refund of
sales charges. Thus, the Cash Value will exceed the policy's Account Value by
the refund amount in the three years following policy issuance. Once the refund
of sales charges has expired, the Cash Value will equal the Account Value (less
any Outstanding Debt). See "Full Surrender".
Determination of Account Value
Although the death benefit under a policy can never be less than the
policy's Specified Amount, the Account Value will vary. The Account 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 Account Value and you bear the entire risk
relating to the investment performance of Account Value allocated to the
subaccounts.
The Company invests amounts allocated to the subaccounts in 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 fee.
. 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 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 any day, the amount in a subaccount of MONY Variable Account L
is equal to the unit value times the number of units in that subaccount
credited to the policy. The units of each subaccount will have different unit
values.
Units of a subaccount are purchased (credited) whenever net premiums or
transfer amounts (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 Account Value.
32
. Pay policy transaction charges.
. Pay partial surrender fees.
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 request
is received at the Company's Operations Center. If the premium or request
reaches the administrative office on a day that is not a Valuation Date, or
after the close of business on a Valuation Date (after 4:00 p.m. Eastern Time),
the transaction date will be the next Valuation Date. All policy transactions
are performed as of a Valuation Date. If a transaction date or monthly
anniversary day occurs on a day other than a Valuation Date (e.g., Saturday),
the calculations will be done on the next day that the New York Stock Exchange
is open for regular trading.
Calculating Unit Values for Each Subaccount
The Company calculates the unit value of a subaccount on any Valuation Date
as follows:
(1) Calculate the value of the shares of the portfolio belonging to the
subaccount as of the close of business that Valuation Date. 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) Divide the resulting amount by the number of units held in the
subaccount on the Valuation Date before the purchase or redemption of any
units on that Date.
The unit value of each subaccount on its first Valuation Date was set at $10.00.
Transfer of Account Value
You may transfer Account Value among the subaccounts after the Right to
Return Policy Period by writing to our Operations Center. Currently, there is:
(1) no limitation on the number of transfers between subaccounts,
(2) no minimum amount required for a transfer, or
(3) no minimum amount required to remain in a given subaccount after a
transfer.
After the Right to Return Policy Period, Account 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."
Transfers by Third Party
As a general rule and as a convenience to you, we allow you to give third
parties the right to effect transfers on your behalf. However, when the same
third party possesses this ability on behalf of many owners, the result can be
simultaneous transfers involving large amounts of Account Value. Such transfers
can disrupt the orderly management of the portfolios underlying the policy, can
result in higher costs to policy owners, and are generally not compatible with
the long-range goals of policy owners. We believe that such simultaneous
transfers effected by such third parties are not in the best interests of all
shareholders of the Funds underlying the policies and the management of the
Funds share this position.
33
Right to Exchange Policy
During the first 24 months following the policy date, you may exchange your
policy for one which the investment experience is guaranteed. To accomplish
this, the entire amount in the subaccounts of MONY 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." No charge is imposed on the transfer when
you exercise the exchange privilege.
Policy Loans
The policy owner may borrow money from the Company at any time using the
policy as security for the loan. A loan is taken by submitting a proper written
request to the Company's Operations Center. A policy owner may take a loan any
time a policy is in effect. The minimum amount a policy owner may borrow is
$250. The maximum amount that may be borrowed at any time is 90% of the Account
Value of the policy less any Outstanding Debt on the date of the loan. (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 of 4.6%. 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.
The owner may repay all or part of the Outstanding Debt at any time while
the 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. If a payment
is not identified as a loan repayment, it will also be treated as a premium
payment. The payment will be subject to the rules on acceptance of premium
payments.
When a loan is taken, an amount equal to the loan is transferred out of the
policy owner's Account Value into the loan account to secure the loan. The
entire amount of the loan will be allocated against the Guaranteed Interest
Account and each subaccount in the same proportion that the account value held
in the Guaranteed Interest Account and each subaccount bears to the Account
Value in all such accounts. 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 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 4.0%.
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, any
interest earned on the amount held in the Loan Account will be transferred each
policy anniversary to each of the subaccounts and the Guaranteed Interest
Account on the same basis.
Amounts held in the loan account to secure Outstanding Debt forego the
investment experience of the subaccounts and the current interest rate of the
Guaranteed Interest Account. Thus Outstanding Debt, whether or not repaid, has
a permanent effect on your policy values and may have an effect on the amount
and duration of the death benefit. If not repaid, the Outstanding Debt will be
deducted from the amount of the death benefit upon the death of the insured, or
the Cash Value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the policy remains in effect.
Unless the Guaranteed Death Benefit Rider is in effect, the policy will lapse
when (1) the Account Value minus Outstanding Debt is
34
insufficient to cover the monthly deduction against the policy's Account 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 Outstanding Debt exceeds
the Account Value of the policy. 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."
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 be considered 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 your policy lapses with an outstanding loan balance, 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 "Tax Considerations."
Full Surrender
A policy owner may fully surrender a policy at any time during the life of
the insured. The amount received for a full surrender is the policy's Cash
Value plus (1) any amount added to Cash Value by the Enhanced Cash Value Rider,
less (2) any Outstanding Debt. For purposes of calculating the Cash Value, the
net asset value of shares of the portfolios of the applicable subaccounts will
be determined on (1) the Valuation Date that we receive your request at our
Operations Center, or (2) on the next Valuation Date if that day is not a
Valuation Date.
A policy owner may surrender a policy by sending a written request together
with the policy to the Company's Operations Center. The proceeds will be
determined as of the end of the valuation period during which the request for
surrender is received. A policy owner may elect to (1) have the proceeds paid
in cash, or (2) apply the proceeds under a payment plan offered under the
policy. See "Payment Plan Settlement Provisions." For information on the tax
effects of surrender of a policy, see "Tax Considerations."
Partial Surrender
With a partial surrender, the policy owner obtains a part of the Account
Value of the policy without having to surrender the policy in full. The policy
owner may request a partial surrender beginning in the first policy year. The
partial surrender and the corresponding calculation of net asset value will
take effect on (1) the Valuation Date that we receive your request at our
Operations Center, or (2) on the next Valuation Date if that day is not a
Valuation Date. There is currently no limit on the number of partial surrenders
allowed in a policy year but the Company reserves the right to limit the number
of partial surrenders to 12 per policy year.
The partial surrender minimum is $500 (plus the applicable fee). In
addition, the policy's Account Value less Outstanding Debt must be at least
$500 after the partial surrender. In addition, the partial surrender must not
reduce the Target Death Benefit or Specified Amount below the minimum we
require to issue the policy.
The policy owner may make a partial surrender by submitting a proper written
request to the Company's Operations Center. As of the effective date of any
partial surrender, the policy owner's Account Value and Surrender Value are
reduced by the amount surrendered (plus the applicable fee). The amount of the
partial surrender (plus the applicable fee) will be deducted proportionately
from the policy owner's Account Value in the subaccounts and the Guaranteed
Interest Account.
When a partial surrender is made and you selected death benefit Option 1,
the Target Death Benefit and the base death benefit of your policy is generally
decreased by the amount of the partial surrender (plus its fee). If the reduced
base death benefit is less than the Specified Amount in force on that day, the
Specified Amount will be decreased to equal that reduced base death benefit.
35
The Target Death Benefit in force must also be adjusted as follows:
(1) if the base death benefit before the partial surrender is less than
the Target Death Benefit, the Target Death Benefit will be reduced by the
amount of the Partial Surrender (plus its applicable fee), less the amount
of the partial surrender.
(2) if the base death benefit before the partial surrender is greater
than or equal to the Target Death Benefit, the Target Death Benefit under
the policy is reduced by the lesser of:
(a) the amount of the partial surrender, plus its applicable fee; or
(b) the amount, if any, that the Target Death Benefit exceeds the
difference between the base death benefit and the amount of the partial
surrender including any applicable fee.
When a partial surrender is made and you selected death benefit Option 2,
the Target Death Benefit is generally decreased by the amount of the partial
surrender (plus the amount of the partial surrender fee). The partial surrender
will not change the Specified Amount of the policy. However, the partial
surrender will reduce the base death benefit by the amount of the partial
surrender. If the Option 2 death benefit is based upon the Cash Value times the
death benefit percentage, a partial surrender may cause the base death benefit
to decrease by an amount greater than the amount of the partial surrender. The
Target Death Benefit under the policy is reduced by:
(1) if the base death benefit before the partial surrender is less than
the Target Death Benefit, the Target Death Benefit will be reduced by the
amount of the partial surrender (plus its applicable fee), or
(2) if the base death benefit prior to the partial surrender is greater
than the Target Death Benefit, Target Death Benefit will be reduced by the
lesser of:
(a) the amount of the partial surrender, plus its applicable fee; or
(b) the amount, if any, that the Target Death Benefit exceeds the
difference between the base death benefit and the amount of the partial
surrender. See "Death Benefits Under the Policy."
There is a fee for each partial surrender of the lesser of $25 or 2% of the
partial surrender amount. See "Charges and Deductions -- Transaction and Other
Charges."
For information on the tax treatment of partial surrenders, see "Tax
Considerations."
Grace Period and Lapse
Your policy will lapse only when:
(1) The Account Value less Outstanding Debt is insufficient to cover the
current monthly deduction against the policy's Account Value on any monthly
anniversary day, and
(2) A 61-day Grace Period expires without the policy owner making a
sufficient payment.
If Guaranteed Death Benefit Rider Is Not in Effect
To avoid lapse if (1) an insufficiency occurs, and (2) a Guaranteed Death
Benefit Rider is not in effect, the policy owner must pay the required amount
during the Grace Period. When an insufficiency occurs, you may also be required
to pay any unpaid loan interest accrued for the policy year. The interest
amount will also have to be paid prior to the end of the Grace Period.
We will reject any payment if it means your total premium payments will
exceed the maximum permissible premium for your policy's Specified Amount under
the Internal Revenue Code. This may happen when the policy owner has
Outstanding Debt. In this event, the policy owner could repay enough of the
Outstanding Debt to avoid termination. The policy owner 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
36
premiums, the policy owner may wish to make larger or more frequent premium
payments to avoid recurrence of the potential lapse.
If the Account Value less Outstanding Debt will not cover the entire monthly
deduction on a monthly anniversary day, we will deduct the amount that is
available. We will notify the policy owner (and any assignee of record) of the
payment required 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. The
payment required is:
(1) the amount of the monthly deduction not paid, plus
(2) any accrued loan interest due during the Grace Period, plus
(3) not less than two succeeding monthly deductions (or the number of
monthly deductions remaining until the next scheduled premium due date, if
more than two).
(See "Charges and Deductions -- Deductions from Premiums"). The policy will
remain in effect through the Grace Period. If the owner fails to make the
required payment within the Grace Period, the coverage under the policy will
end and your policy will lapse. Required premium payments made during the Grace
Period will be allocated among the subaccounts and the Guaranteed Interest
Account. The allocation is made 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 will not lapse during the guarantee
period even if the Account Value less Outstanding Debt is not enough to cover
all the deductions from the Account Value on any monthly anniversary day if:
(1) A Guaranteed Death Benefit Rider is in effect, and
(2) The test for continuation of the guarantee period has been met.
See "Guaranteed Death Benefit Rider".
While the Guaranteed Death Benefit Rider is in effect, the Account Value of
the policy may be reduced by monthly deductions but not below zero. During the
guarantee period, we will waive any monthly deduction that will reduce the
Account Value below zero. If the Guaranteed Death Benefit Rider is ended, the
normal test for lapse will resume. The Guaranteed Death Benefit Rider does not
guarantee the continuation of any Adjustable Term Insurance Rider.
Reinstatement
We will reinstate a lapsed policy at any time:
(1) before the maturity date, and
(2) within five years after the monthly anniversary day which precedes
the start of the Grace Period.
To reinstate a lapsed policy we must also receive:
(1) a written application from you;
(2) evidence of insurability satisfactory to us;
37
(3) payment of a premium large enough to cover the balance that was
needed to be paid during the grace period (see "Grace Period and Lapse,"
above);
(4) payment of a premium at least sufficient to keep your policy in
effect for three months after the reinstatement date; and
(5) payment of any Outstanding Debt or reinstatement of any Outstanding
Debt, plus payment of any interest on Outstanding Debt from the date of
reinstatement to the next succeeding policy anniversary day at a rate that
applies to policy loans on the date of reinstatement.
When your policy is reinstated, the Account Value will be equal to the
Account Value on the date of the lapse subject to the following:
(1) Any Outstanding Debt on the date of lapse must be paid or reinstated.
(2) 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
proceeding the date of approval by us. At that time, the Account 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.
Deductions from Premiums
The sales charge and tax charges are deducted from the gross premium prior
to applying the net premium to the Account Value. The sales charge is deducted
from gross premium only up to Target Premium. Tax charges are deducted against
the entire gross premium.
Sales Charge -- During the first ten policy years and during the ten policy years following
an increase in Specified Amount -- 9%.
After the tenth policy year -- 0%
The Target Premium is an amount equal to the maximum amount of premium which
may be paid for a death benefit Option 1 policy without violating the limits
imposed by the federal income tax law definition of a modified endowment
contract. See "Modified Endowment Contracts." The Target Premium is not based
on scheduled premium. The Target Premium for the policy and Specified Amount
coverage segments added since the policy date will be stated in the policy.
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. Expenses in excess of the sales charges may be
recovered from other charges, including amounts indirectly derived from the
charge for mortality and expense risks and mortality gains.
A portion of the sales charges previously deducted from premium payments may
be refunded if:
(1) the policy is surrendered in the first three policy years, and
(2) the policy is not in default.
Year of Surrender Amount of Refund
- ----------------- ----------------
First policy year............. Sum of all sales charge deductions in that year
Second policy year............ 66.67% of sales charge deductions in the first policy year
Third policy year............. 33.33% of sales charge deductions in the first policy year
No refund will be paid if the policy is in default.
38
Tax Charges -- State and local premium tax -- 0%.
Federal tax for deferred acquisition costs of the Company -- 1.25%
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.
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. In addition, if an
insured changes his or her place of residence, we should be notified of the
change. Any change in the tax rate will be effective upon receipt of the next
premium payment following the date the Company is notified of the tax rate
change.
Deductions from Account Value
A charge called the Monthly Deduction is deducted from the Account 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 Account 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 Account Value at
that time.
The policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables. (Where unisex cost of insurance
rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker Mortality
Table 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. Unisex rates are
used where appropriate under applicable law. 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.
Lower cost of insurance rates are offered at most ages for insureds who:
(1) qualify for the standard underwriting class, and
(2) whose applications are fully underwritten (i.e., subject to evidence
of the insured's insurability).
Current insurance rates are generally higher if the policies are issued on a
guaranteed issue basis, where evidence of insurability is not required.
Policies issued to employers, trustees and similar entities are often issued on
a guaranteed issue basis. Only limited underwriting information is obtained
when underwriting on a guaranteed issue basis. Therefore, policies in this
underwriting class may present an additional mortality expense to us relative
to fully underwritten policies. The additional risk is generally reflected in
higher current insurance rates, which are nevertheless guaranteed not to exceed
the 1980 Commissioners' Standard Ordinary Mortality Tables.
39
We may offer insurance coverage up to $2.5 million on a guaranteed issue or
simplified issue basis under policies in a single case that meet our
requirements at the time of policy issue.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Account Value will first be
applied to the initial Specified Amount. If the Account 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 base death benefit
equals the Surrender Value multiplied by the applicable death benefit
percentage, any increase in Account Value will cause an automatic increase in
the base 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).
Mortality and Expense First 10 policy years -- .05% per month of Account Value allocated to
Risk Charge -- MONY Variable Account L which is equivalent to an annual rate of .60%
of Account Value allocated to MONY Variable Account L.
After the 10th policy year -- Maximum charge of .0375% per month of
Account Value allocated to MONY Variable Account L equivalent to
.45% annually. This charge may be reduced.
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 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.
This charge is not assessed against the amount of the policy Account Value
that is allocated to the Guaranteed Interest Account, nor to amounts in the
loan account.
Administrative
Charge -- $7.50 per month (all policies)
The administrative charge reimburses us for expenses associated with
administration and maintenance of the policies. The charge is guaranteed never
to exceed $7.50. We do not expect to profit from these charges.
40
Guaranteed Death Benefit If you elect the Guaranteed Death Benefit Rider, you will be charged
Charge -- $0.01 per $1,000 of policy Specified Amount per month during the term
of the Guaranteed Death Benefit Rider. This charge is guaranteed never to
exceed this amount.
Optional Adjustable Term Insurance Current cost of insurance rate x amount at risk at the beginning of the
Rider Charge -- policy month.
Transaction and Other Partial Surrender Fee -- lesser of $25 or 2% of the partial surrender
Charges -- amount
Transfer of Account Value -- Currently the Company does not assess a
transfer charge. The Company reserves the right to charge up to a
maximum of $25 for transfers.
The charges for the partial surrender fee, transfer of Account Value and
premium allocation changes are guaranteed not to exceed the amounts stated
above.
We may charge the subaccounts for federal income taxes that are incurred by
us and are attributable to MONY Variable Account L and its subaccounts. No such
charge is currently assessed. See "Charge for Company Income Taxes".
We will bear the direct operating expenses of MONY 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.
Guarantee of Certain Charges
We guarantee that certain charges will not increase. This includes:
(1) mortality and expense risk charge,
(2) administrative charge,
(3) guaranteed Death Benefit charge,
(4) sales charge,
(5) guaranteed cost of insurance rates, and
(6) certain transaction charges.
Any changes in the current cost of insurance charges related to the base
death benefit or the monthly charge for the Adjustable Term Insurance Rider
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.
41
Corporate Purchasers -- Reduction of Charges
For sales of the policy to corporations, banks or institutions in situations
where the Company expects to incur lower than normal expenses, such as
financial institutions, it reserves the right to reduce one or more of the
charges or deductions described above or elsewhere in this prospectus. The
Company considers a number of factors in determining whether or not to expect
expense reductions that would warrant a reduction of one or more charges or
deductions. These may include but are not limited to:
. the nature of the corporate, bank or institutional purchaser;
. the size of the case (either by number of insured lives or anticipated
aggregate premium);
. the planned funding pattern for the case;
. the anticipated persistency of the case;
. reduced distribution expenses;
. reduced administrative expenses; or
. any other factors that indicate reduced levels of risk, expenses or
services to policy owners.
In certain circumstances, charge and deduction reductions may be
contractually guaranteed. Where there is no guarantee of such reductions,
future experience with a category of reduced charge/deduction cases may cause
the Company to discontinue or modify some or all of the reductions on a uniform
basis for all policies in the category.
OTHER INFORMATION
Tax Considerations
Introduction
The following summary provides a general description of the federal income
tax considerations associated with the policy and does not purport to be
complete or to cover all tax situations. This discussion is not intended as tax
advice. Counsel or other competent tax advisors should be consulted for more
complete information. This discussion is based upon our understanding of the
present federal income tax laws. No representation is made as to the likelihood
of continuation of the present federal income tax laws or as to how they may be
interpreted by the Internal Revenue Service.
Tax Status of the Policy
In order to qualify as a life insurance contract for federal income tax
purposes and to receive the tax treatment normally accorded life insurance
contracts under federal tax law, a policy must satisfy certain requirements
which are set forth in the Internal Revenue Code. Guidance as to how these
requirements are to be applied is limited. Nevertheless, we believe that the
policy should satisfy the applicable requirements. There is less guidance,
however, with respect to policies issued on a rated basis and policies with
term riders added and it is not clear whether such policies will in all cases
satisfy the applicable requirements. If it is subsequently determined that a
policy does not satisfy the applicable requirements, we may take appropriate
steps to bring the policy into compliance with such requirements and we reserve
the right to restrict policy transactions in order to do so.
In certain circumstances, owners of variable life insurance contracts have
been considered for federal income tax purposes to be the owners of the assets
of the variable account supporting their contracts due to their ability to
exercise investment control over those assets. Where this is the case, the
contract owners have been currently taxed on income and gains attributable to
the variable account assets. There is little guidance in this area, and some
features of the policies, such as the flexibility of a policy owner to allocate
premiums and cash
42
values, have not been explicitly addressed in published rulings. While we
believe that the policies do not give policy owners investment control over
MONY Variable Account L assets, we reserve the right to modify the policies as
necessary to prevent a policy owner from being treated as the owner of the
Variable Account assets supporting the policy.
In addition, the Code requires that the investments of MONY Variable Account
L be "adequately diversified" in order for the policies to be treated as life
insurance contracts for federal income tax purposes. It is intended that the
Variable Account, through the Funds, will satisfy these diversification
requirements.
The following discussion assumes that the policy will qualify as a life
insurance contract for federal income tax purposes.
Tax Treatment of Policy Benefits
In General. We believe that the death benefit under a policy should be
excludible from the gross income of the beneficiary. Federal, state and local
transfer, and other tax consequences of ownership or receipt of policy proceeds
depend on the circumstances of each policy owner or beneficiary. A tax advisor
should be consulted on these consequences.
Generally, the policy owner will not be deemed to be in constructive receipt
of the policy cash value until there is a distribution. When distributions from
a policy occur, or when loans are taken out from or secured by a policy, the
tax consequences depend on whether the policy is classified as a "Modified
Endowment Contract."
Modified Endowment Contracts. Under the Internal Revenue Code, certain life
insurance contracts are classified as "Modified Endowment Contracts," with less
favorable tax treatment than other life insurance contracts. Due to the
flexibility of the policies as to premiums and benefits, the individual
circumstances of each policy will determine whether it is classified as a
Modified Endowment Contract. The rules are too complex to be summarized here,
but generally depend on the amount of premiums paid during the first seven
policy years. Certain changes in a policy after it is issued could also cause
it to be classified as a Modified Endowment Contract. A current or prospective
policy owner should consult with a competent advisor to determine whether a
policy transaction will cause the policy to be classified as a Modified
Endowment Contract.
Distributions Other Than Death Benefits from Modified Endowment Contracts.
Policies classified as Modified Endowment Contracts are subject to the
following tax rules:
(1) All distributions other than death benefits, including distributions
upon surrender and withdrawals, from a Modified Endowment Contract will be
treated first as distributions of gain taxable as ordinary income and as
tax-free recovery of the policy owner's investment in the policy only after
all gain has been distributed.
(2) Loans taken from or secured by a policy classified as a Modified
Endowment Contract are treated as distributions and taxed accordingly.
(3) A 10 percent additional income tax is imposed on the amount subject
to tax except where the distribution or loan is made when the policy owner
has attained age 591/2 or is disabled, or where the distribution is part of
a series of substantially equal periodic payments for the life (or life
expectancy) of the policy owner or the joint lives (or joint life
expectancies) of the policy owner and the policy owner's beneficiary or
designated beneficiary. A corporate owner will not meet any of these
exceptions.
If a policy becomes a modified endowment contract, distributions that occur
during the contract year will be taxed as distributions from a modified
endowment contract. In addition, distributions from a policy within two years
before it becomes a modified endowment contract will be taxed in this manner.
This means that a distribution made from a policy that is not a modified
endowment contract could later become taxable as a distribution from a modified
endowment contract.
43
Distributions Other Than Death Benefits from Policies that are not Modified
Endowment Contracts. Distributions other than death benefits from a policy
that is not classified as a Modified Endowment Contract are generally treated
first as a recovery of the policy owner's investment in the policy and only
after the recovery of all investment in the policy as taxable income. However,
certain distributions which must be made in order to enable the policy to
continue to qualify as a life insurance contract for federal income tax
purposes if policy benefits are reduced during the first 15 Policy years may be
treated in whole or in part as ordinary income subject to tax.
Loans from or secured by a policy that is not a Modified Endowment Contract
are generally not treated as distributions. However, the tax consequences
associated with loans after the tenth policy year are less clear and a tax
adviser should be consulted about such loans.
Finally, neither distributions from nor loans from or secured by a policy
that is not a Modified Endowment Contract are subject to the 10 percent
additional income tax.
Investment in the Policy. Your investment in the policy is generally your
aggregate premiums. When a distribution is taken from the policy, your
investment in the policy is reduced by the amount of the distribution that is
tax-free.
Policy Loans. In general, interest on a policy loan will not be deductible.
If a policy loan is outstanding when a policy is canceled or lapses, the amount
of the outstanding indebtedness will be added to the amount distributed and
will be taxed accordingly. Before taking out a policy loan, you should consult
a tax adviser as to the tax consequences.
Multiple Policies. All Modified Endowment Contracts that are issued by us
(or our affiliates) to the same policy owner during any calendar year are
treated as one Modified Endowment Contract for purposes of determining the
amount includible in the policy owner's income when a taxable distribution
occurs.
Withholding. To the extent that policy distributions are taxable, they are
generally subject to withholding for the recipient's federal income tax
liability. Recipients can generally elect, however, not to have tax withheld
from distributions.
Continuation of Policy Beyond Age 95. The tax consequences of continuing
the policy beyond the insured's 95th year are unclear. You should consult a tax
adviser if you intend to keep the policy in force beyond the insured's 95th
year.
Business Uses of Policy. Businesses can use the policies in various
arrangements, including nonqualified deferred compensation or salary
continuance plans, split dollar insurance plans, executive bonus plans, tax
exempt and nonexempt welfare benefit plans, retiree medical benefit plans and
others. The tax consequences of such plans may vary depending on the particular
facts and circumstances. If you are purchasing the policy for any arrangement
the value of which depends in part on its tax consequences, you should consult
a qualified tax adviser. In recent years, moreover, Congress has adopted new
rules relating to life insurance owned by businesses. Any business
contemplating the purchase of a new policy or a change in an existing policy
should consult a tax adviser.
Other Tax Considerations. The transfer of the policy or designation of a
beneficiary may have federal, state, and/or local transfer and inheritance tax
consequences, including the imposition of gift, estate, and generation-skipping
transfer taxes. For example, the transfer of the policy to, or the designation
as a beneficiary of, or the payment of proceeds to, a person who is assigned to
a generation which is two or more generations
44
below the generation assignment of the owner may have generation-skipping
transfer tax consequences under federal tax law. The individual situation of
each owner or beneficiary will determine the extent, if any, to which federal,
state, and local transfer and inheritance taxes may be imposed and how
ownership or receipt of policy proceeds will be treated for purposes of
federal, state and local estate, inheritance, generation-skipping and other
taxes.
Possible Tax Law Changes. Although the likelihood of legislative changes is
uncertain, there is always the possibility that the tax treatment of the policy
could change by legislation or otherwise. Consult a tax adviser with respect to
legislative developments and their effect on the policy.
Our Income Taxes
Under current federal income tax law, we are not taxed on MONY Variable
Account L's operations. Thus, currently we do not deduct a charge from the
Variable Account for federal income taxes. We reserve the right to charge MONY
Variable Account L for any future federal income taxes we may incur.
Under current laws, we may incur state and local taxes (in addition to
premium taxes). These taxes are not now significant and we are not currently
charging for them. If they increase, we may deduct charges for such taxes.
Federal Bank Regulatory Considerations
To assist banks in determining whether to purchase a corporate-owned life
insurance ("COLI") policy such as the policy, the Office of the Comptroller of
the Currency ("OCC") has established guidelines describing several factors that
national banks should consider. On July 20, 2000, the OCC issued Bulletin
2000-23 that outlines certain supervisory considerations a bank should consider
before purchasing a COLI policy. These include the following:
. The bank should determine the need for insurance by identifying the
specific risk of loss or obligation to be insured against;
. Using the cost of insurance and the time value of money, the bank should
ensure that the amount of insurance purchased is not excessive;
. The bank should consider using a vendor to purchase the COLI policy which
could work with the bank in designing, negotiating, and
administering/servicing the COLI policy;
. Because of the long duration of the COLI policy, the bank should consider
the characteristics of the policy as well as the insurance company's
credit rating, general reputation and experience in the marketplace;
. The bank should consider whether the benefits to be derived from the COLI
policy will achieve the bank's objectives;
. The bank should determine that any compensation provided by COLI used in a
split-dollar arrangement (i.e., where the employer and employee share the
rights to a policy's cash surrender value and death benefits) combined
with all other compensation is not excessive;
. The bank should analyze the transaction, credit, interest rate, liquidity,
compliance and price risk it will be subject to with its purchase of the
COLI policy; and
. The bank should consider alternatives to the purchase of a COLI policy and
document its decision concerning its COLI policy purchase.
The OCC also indicates that purchasing insurance to indemnify a bank against
a specific risk does not relieve the bank from other responsibilities relating
to managing that risk.
45
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 exercise of these voting
rights will be based on instructions received from persons having the voting
interest in corresponding subaccounts of MONY Variable Account L. We may elect
to vote the shares of the Funds in our own right if:
(1) The Investment Company Act of 1940 or any regulations thereunder is
amended, or
(2) The present interpretation of the Act should change, and
(3) As a result we determine that it is permitted to vote the shares of
the Funds in our own right.
The person having the voting interest under a policy is the policy owner.
Unless otherwise required by applicable law, a policy owner will have the right
to instruct for the number of votes of any portfolio determined by dividing his
or her Account Value in the subaccount that corresponds to the portfolio by
$100. Fractional votes will be counted. The number of policy owner votes will
be determined as of the date set by the Company. However, such date will not be
more than 90 days prior to the date established by the corresponding Fund for
determining shareholders eligible to vote at that Fund's meeting. If required
by the Securities and Exchange Commission, the Company reserves the right to
determine the voting rights in a different fashion. Voting instructions may be
cast in person or by proxy.
If the Company does not receive voting instructions from the policy owner on
time, the Company will vote his or her votes. The Company will vote in the same
proportion as voting instructions received on time for all policies
participating in that subaccount. The Company will also exercise the voting
rights from assets in each subaccount, which are not otherwise attributable to
policy owners. These votes will be exercised in the same proportion as the
voting instructions that are received on time for all policies participating in
that subaccount. Generally, the Company will vote any voting rights
attributable to shares of portfolios of the Funds held in its General Account.
These votes will be exercised in the same proportion as the aggregate votes
cast with respect to shares of portfolios of the Funds held by MONY 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, Account Value, Cash
Value, and any Outstanding Debt.
46
In addition, the statement will indicate the allocation of Account 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 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 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 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.
The new portfolios of the Funds may have higher fees and charges than the
ones they replaced, and not all Fund portfolios may be available to all classes
of policies.
Where required, the Company will not substitute any shares attributable to a
policy owner's interest in MONY Variable Account L without notice, policy owner
approval, or prior approval of the Securities and Exchange Commission. The
Company will also follow the filing or other procedures established by
applicable state insurance regulators including the Superintendent of Insurance
of the State of New York.
The Company also reserves the right to establish additional subaccounts of
MONY 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 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 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.
47
Federal and State laws include but are 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
Performance information for the subaccounts of MONY Variable Account L and
the underlying portfolios in which the subaccounts invest may appear in
advertisements, sales literature, or reports to policy owners or prospective
purchasers.
All performance we show will reflect the fees and charges assessed by the
Funds and shown in the table under "Fees and Expenses of the Funds." Each
performance presentation will identify the fees and charges deducted from the
performance, and the fees and charges not deducted from the performance (if we
were to show those omitted fees and charges, performance would have been
significantly lower).
You may always obtain a personalized illustration. This illustration will
reflect the fees and charges assessed under the policy that are applicable to
you. These fees and charges include the sales charge, the tax charge, the cost
of insurance charge, the mortality and expense risk charge, the administrative
charge, and the fees and charges assessed by the Funds in which you invest.
We provide hypothetical illustrations in this prospectus. See Appendix G.
These illustrations show all the standard fees and charges assessed under the
policy, but do not reflect the optional benefits that you may purchase for an
extra fee.
Performance information may be compared, in reports and promotional
literature, to: (1) the S&P 500, Dow Jones Industrial Average, Lehman Brothers
Aggregate Bond Index or other unmanaged indices so that investors may compare
results with those of a group of unmanaged securities widely regarded by
investors as representative of the securities markets in general; (2) other
groups of variable life separate accounts or other investment products tracked
by Lipper Analytical Services, a widely used independent research firm which
ranks mutual funds and other investment products by overall performance,
investment objectives, and assets, or tracked by other services, companies,
publications, or persons, such as Morningstar, Inc., who rank such investment
products on overall performance or other criteria; or (3) the Consumer Price
Index (a measure for inflation) to assess the real rate of return from an
investment. Unmanaged indices may assume the reinvestment of dividends but
generally do not reflect deductions for administrative and management costs and
expenses.
The performance data represents past performance and should not be
considered indicative of future results.
THE GUARANTEED INTEREST ACCOUNT
You may allocate all or a portion of your net premiums and transfer Account
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.
48
General Description
Amounts allocated to the Guaranteed Interest Account become part of the
General Account of the Company which consists of all assets owned by the
Company other than those in MONY 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 Variable Account L, or both. You may also transfer Account Value from the
subaccounts of MONY Variable Account L to the Guaranteed Interest Account or
from the Guaranteed Interest Account to the subaccounts. The Company guarantees
that the Account Value in the Guaranteed Interest Account will be credited with
a minimum interest rate of 0.010746% daily, compounded daily, for a minimum
effective annual rate of 4.0%. Such interest will be paid regardless of the
actual investment experience of the Guaranteed Interest Account and, once
applied, such interest is non-forfeitable. In addition, the Company may in its
sole discretion declare current interest rate in excess of the 4.0% rate, which
will be guaranteed for one year if a LIBOR RATE is used. If we use a rate other
than a LIBOR Rate, we will set this rate annually for the month the policy is
issued, and that will be credited throughout that calendar year to assets
allocated to the Guaranteed Interest Account. As of July 10, 2000, the
company's investment strategy is to acquire securities which will allow annual
interest credits to the Guaranteed Interest Account to vary in accordance with
the London Interbank Offered Rate (LIBOR). Annual credits can be less than,
equal to or greater than LIBOR. The Company reserves the right to change its
interest strategy. (The portion of a policy owner's Account Value that has been
used to secure Outstanding Debt will be credited with a guaranteed interest
rate of 0.010746% daily, compounded daily, for a minimum effective annual rate
of 4.0%.)
Any change in interest rate will be on a uniform basis for insureds of the
same class and will be determined in accordance with procedures and standards
on file with the Superintendent of Insurance of the State of New York.
The Company also offers the choice of a Portfolio based current interest
rate instead of the LIBOR-based rate. If this choice is made at issue or at the
time money is first allocated to the Guaranteed Interest Account, then we may,
at our sole discretion, declare current interest rate in excess of the 4.0%
rate, which we will guarantee for approximately one year; and such rate of
interest will be based upon the expectation of investment experience of a
portfolio of assets supporting this and other similar products as we may so
choose. The choice of Guaranteed Interest Account crediting rate method can
only be made once during the lifetime of the policy and, once made cannot be
changed to another method.
The Company bears the full investment risk for the Account Value allocated
to the Guaranteed Interest Account.
Policy Charges
Deductions from premium, monthly deductions from the Account Value, other
than the mortality and expense risk fee, will be the same for policy owners who
allocate net premiums or transfer Account 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, issue charge, and the charge for the Adjustable Term Insurance Rider.
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 Account Value
is allocated to the Guaranteed Interest Account. Likewise, the mortality and
expense risk charge applicable to the Account Value allocated to the
subaccounts is not deducted from Account 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
49
participate in the investment experience of the subaccounts to the extent that
Account Values are allocated to the Guaranteed Interest Account.
Transfers
Amounts may be transferred after the Right to Return Policy Period from the
subaccounts to the Guaranteed Interest Account and from the Guaranteed Interest
Account to the subaccounts, subject to the following limitations.
. Transfers from the Guaranteed Interest Account to the subaccounts are
limited to one in any policy year.
. Transfers from the Guaranteed Interest Account are limited to the greater
of $5,000 and 25% of the Account Value allocated to the Guaranteed
Interest Account on the date of the transfer.
. A transfer from the Guaranteed Interest Account may only be made during
the time period which begins on the policy anniversary and which ends 30
days after the policy anniversary.
If the transfer request is received on the policy anniversary, it will be
processed as of the policy anniversary. If the transfer request is received
within 30 days after the policy anniversary, the transfer will be effective as
of the close of business on the day received if it is a Valuation Date. If it
is not a Valuation Date, then at the close of business on the next day which is
a Valuation Date. 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 on transfers of Account Value between
subaccounts or between the Guaranteed Interest Account and the subaccounts. The
Company reserves the right to charge up to a maximum of $25 for transfers. In
addition, we reserve the right to impose other limitations on the number of
transfers, the amount of transfers, and the amount remaining in the Guaranteed
Interest Account or subaccounts after a transfer.
Surrenders and Policy Loans
You may also make full surrenders and partial surrenders from the Guaranteed
Interest Account to the same extent as if you had invested in the subaccounts.
See "Full Surrender" and "Partial Surrender". 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.
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
Operations
50
Center. 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.
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, payment of any partial surrender or loan payment involving a
determination of Account Value in the Guaranteed Interest Account (exempt when
used to pay premium) may be postponed for up to 6 months from the date we
receive the request for surrender or loan. The Company can also postpone the
calculation of payment if such a payment or transfer of amounts is based on
investment performance of the subaccounts and if:
. The New York Stock Exchange is closed on other than customary weekend and
holiday closing or trading on the New York Stock Exchange is restricted as
determined by the SEC; or
. An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net assets.
Interest will be paid on death proceeds from the date of the insured's death
to the date of payment. We will determine the interest rate for each year, and
this rate will not be less than the annual rate paid under Settlement Option 1.
51
Please note: If mandated under applicable law, we may be required to reject
a premium payment. We may also be required to block a policy owner's account
and thereby refuse to honor any request for transfers, partial surrenders,
surrenders, loans or death benefits until instructions are secured from the
appropriate regulator.
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. 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 within two years from the issue 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 within two years of the effective date of any
unscheduled increase in the Specified Amount or Target Death Benefit, the
Company will refund the cost of insurance charges made with respect to such
increase.
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 Operations Center. 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 "Tax Considerations".)
Errors on the Application
If you misstated the insured's age or sex, the Company will adjust the death
benefit payable under your policy. The death benefit the Company will pay will
equal the sum of (a) and (b) where:
(a) is the Account Value on the insured's date of death; and
(b) is the amount at risk under the policy on the last monthly
anniversary day, multiplied by the ratio of the insurance rate on the last
monthly anniversary day based on the incorrect age or sex to the insurance
rate that would have applied on that day based on the correct age or sex.
If unisex cost of insurance rates apply, no adjustment will be made for a
misstatement of gender. See "Deductions from Account Value -- Cost of
Insurance."
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
issue date; and
52
(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
We have entered into a distribution agreement with MONY Securities
Corporation ("MSC"), a wholly-owned subsidiary of MONY Life Insurance Company,
to act as principal underwriter and for the distribution and sale of the
policies. MSC is registered as a broker-dealer under the Securities and
Exchange Commission under the Securities Exchange Act of 1934 as well as with
the securities commissions in the states in which it operates, and is a member
of the National Association of Securities Dealers, Inc. ("NASD").
MSC offers the policies through its registered representatives who are
registered with the NASD and with the states in which they do business and are
also appointed as licensed life insurance agents of the Company. More
information about MSC and its registered persons is available at
http://www.nasdr.com or by calling 1-800-289-9999. You also can obtain an
investor brochure from NASD Regulation describing its Public Disclosure
Program. We offer the policies on a continuous basis. We anticipate continuing
to offer the policies, but reserve the right to discontinue the offering. We
pay sales commissions for the sale of the policies.
After issue of the policy, representatives will earn a commission.
Commissions vary based on whether the policy is a Modified Endowment Contract
or non-Modified Endowment Contract, and issued by a 1035 exchange. Commissions
may be paid more heavily in the first few years or on a more evenly distributed
basis. The maximum commission for policy year one is 40% of the target
premiums, year two is 15%, years three through five is 12%, and years six
through ten is 10%. The maximum commission as a percentage of excess is 3%. The
maximum trail commission for policy years two through ten is 10 basis points
and for years eleven and beyond is 15 basis points. Registered representatives
may also receive other benefits based on the amount of earned commissions.
Because registered representatives are also insurance agents of the Company,
they are eligible for various cash benefits, such as bonuses, insurance
benefits and non-financing arrangements, and non-cash compensation programs
that the Company offers such as conferences, trips, prizes and awards. Other
payments may be made for other services that do not directly involve the sale
of the policies. These services may include the recruitment and training of
personnel, production of promotional literature and similar services. The
Company makes no separate deductions, other than previously described, from
premiums to pay sales commissions or sales expenses. Commissions paid on the
policy, including other incentives or payments, are not charged directly to the
policy owners or MONY Variable Account L.
MSC will receive 12b-1 fees from certain of the Funds as compensation for
providing certain distribution and shareholder support services.
MSC may enter into selling agreements with other broker-dealers that are
members of the NASD and whose registered representatives are authorized by
applicable law to sell variable life insurance policies and appointed to the
Company. Commissions paid to these broker-dealers for their representatives
will not exceed the commissions described above. The selling agreement does not
restrict these broker-dealers from retaining a portion of commissions.
MSC receives fees for the sale of the policies. In 1999, 2000, and 2001, MSC
received, in aggregate, fees of $19,962,361, $19,810,966 and $17,532,005,
respectively.
MSC also acts as principal underwriter for other variable products and
distributes non-proprietary variable products and mutual funds.
53
Policy Owner Services
The Company currently offers policy owners two services: Dollar Cost
Averaging and Automatic Rebalancing. These services may be terminated at any
time; owners of Policies in force at the time of termination utilizing these
services will receive 30 days prior notice. There currently are no charges for
these services and any transfers as a result of the operation of these services
are not counted toward the limit of 12 transfers per Policy Year without a
transfer charge. If the Company elects to impose a charge for these services,
owners of policies in force at that time utilizing these services will receive
30 days prior notice. These services involve the sale of units in one or more
subaccounts and the purchase of units in one or more other subaccounts. This
may result in a loss of Account Value.
Dollar Cost Averaging
Dollar Cost Averaging is available to owners of policies with Account Value
allocated to the Money Market Subaccount. The main objective of Dollar Cost
Averaging is to protect the Account Value from short-term price fluctuations.
Under Dollar Cost Averaging the same dollar amount is transferred to other
subaccounts each period. Therefore, more units are purchased in a subaccount if
the value per unit that period is low, and fewer units are purchased if the
value per unit that period is high. This plan of investing keeps the policy
owner from investing too much when the price of shares is high and too little
when the price of shares is low. There is no guarantee that this service will
generate a profit or avoid a loss.
Dollar Cost Averaging may be elected by completing and returning the form
provided by us to our Operations Center. Once the election is made, a
designated dollar amount of Account Value will be transferred automatically
from the Money Market Subaccount to one or more other subaccounts of the
Variable Account each period. Dollar Cost Averaging allocations may be made
either monthly or quarterly. (Dollar Cost Averaging transfers may not be made
to the Guaranteed Interest Account.) Dollar Cost Averaging may be terminated at
a designated date or when the Money Market Subaccount reaches a pre-defined
minimum balance.
Each transfer under Dollar Cost Averaging must be at least $250. Each
automatic monthly transfer will take place on the 10th day of each calendar
month; automatic quarterly transfers take place on the 10th day of the last
month of each calendar quarter. If Dollar Cost Averaging is elected at the time
of application, transfers will begin in the appropriate calendar month
following completion of the Right to Return Policy Period. If elected after
issuance of the Policy, transfers will begin in the appropriate calendar month
which is at least 30 days following our receipt of the request for Dollar Cost
Averaging. If, at the time of any transfer, the amount in the Money Market
Subaccount is equal to or less than the amount elected to be transferred, the
entire remaining balance will be transferred and Dollar Cost Averaging will
end. The amount to be transferred or the subaccounts to which transfers are to
be made may be changed once each Policy Year. Dollar Cost Averaging may be
canceled at any time by sending notice to our Operations Center which is
received at the Center at least 10 days before the next transfer date.
If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will take place first. Automatic Rebalancing will begin only
after a monthly or quarterly Dollar Cost Averaging transfer has been completed.
Automatic Rebalancing
Automatic Rebalancing provides a method for maintaining a balanced approach
to allocating Account Values among subaccounts and simplifies the process of
asset allocation over time.
Automatic Rebalancing may be elected when application for a Policy is made
or at any subsequent time by completing and returning to the Company at the
Operations Center the form provided by the Company. Automatic Rebalancing
matches subaccount Account Value allocations over time to the most recently
filed allocation percentages for new premiums allocated to the subaccounts. As
of the 10th day of the last month of
54
each calendar quarter, the Company will automatically re-allocate the amounts
in each of the subaccounts into which premiums are allocated to match the
premium allocation percentages. This will rebalance subaccount Account Values
that may be out of line with the allocation percentages indicated, which may
result, for example, from subaccounts which underperform other subaccounts in
certain quarters. Allocations to the Guaranteed Interest Account will not be
rebalanced.
If Automatic Rebalancing is elected with the application, the first transfer
will occur on the 10th day of the last month of the calendar quarter which
begins after the end of the Right to Return Policy Period. If elected after
Policy issue, transfers will begin as of the 10th day of the last month of the
calendar quarter which follows the Company's receipt of notification at the
Operations Center.
The Automatic Rebalancing feature percentages may be adjusted by changing
the Policy's premium allocation percentages. If the Automatic Rebalancing
feature is active on a Policy and a premium allocation which does not meet the
Company's requirement is received, the Company will notify the policy owner
that the allocation must be changed; any such request will not be processed
unless a request for discontinuance of Automatic Rebalancing is received.
Automatic Rebalancing may be terminated at any time, so long as notice of
the termination is received at the Operations Center at least 10 days prior to
the next scheduled transfer.
If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will take place first. Automatic Rebalancing will begin only
after Dollar Cost Averaging has ended.
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 is 1740
Broadway, New York, New York 10019.
Current Officers and Directors of MONY are set forth below with a
description of their business positions during the past five years, unless
otherwise noted.
Name Position and Offices with MONY Life Insurance Company ("MONY Life")
- ---- -------------------------------------------------------------------
Michael I. Roth.. Director, Chairman of the Board and Chief Executive Officer (since
1998) of MONY Life; (since 1997) of The MONY Group Inc.
Director, Chairman of the Board and Chief Executive Officer (since
1993) of MONY Life Insurance Company of America. Director of
various MONY subsidiaries.
Samuel J. Foti... Director, President and Chief Operating Officer (since 1998) of
MONY Life and (since 1997) of The MONY Group Inc. Director
(since 1993) and President and Chief Operating Officer (since 1994)
of MONY Life Insurance Company of America.
Kenneth M. Levine Director, Executive Vice President and Chief Investment Officer
(since 1997) of The MONY Group Inc. and (since 1998) of MONY
Life. Executive Vice President (since 1990) and Director (since
1994) of MONY Life Insurance Company of America. Director of
various MONY subsidiaries.
Richard Daddario. Executive Vice President and Chief Financial Officer (since 1994) of
MONY Life and (since 1997) of The MONY Group Inc. Director
(since 1989) and Vice President and Controller (since 1997) of
MONY Life Insurance Company of America. Director of various
MONY subsidiaries.
55
Name Position and Offices with MONY Life Insurance Company ("MONY Life")
- ---- -------------------------------------------------------------------
Steven G. Orluck.. Executive Vice President (since 2002) and Senior Vice President and
Chief Distribution Officer (since 1998) of MONY Life. Mr. Orluck
joined MONY Life after 24 years with Metropolitan Life Insurance
Co. where he last served as Vice President, Individual Business.
Richard E. Connors Senior Vice President (since 1994) of MONY Life. Director MONY
Life Insurance Company of America (since 1994). Director of
various MONY subsidiaries.
Evelyn L. Peos.... Senior Vice President (since 2002) and Vice President (since 1993)
of MONY Life.
Bart Schwartz..... Senior Vice President and General Counsel of MONY Life (since
2000). Prior to joining the Company in 2000, Mr. Schwartz was Senior
Vice President and General Counsel of Willis Corroon Corporation.
Michael Slipowitz. Senior Vice President and Chief Actuary (since 2002) and Vice
President (1993 to 2001) of MONY Life. Director, Vice President
and Actuary (since 2002) and Vice President (since 1993)of MONY
Life Insurance Company of America.
Arnold Brousell... Vice President-Financial Reporting and Chief Accounting Officer
(since 2002) and Vice President-Financial Reporting (since 1998)
and Assistant Vice President (since 1997) of MONY Life.
David V. Weigel... Vice President and Treasurer (since 2000) of MONY Life and Vice
President-Treasurer (since 1998) of The MONY Group Inc.
Treasurer of various MONY subsidiaries.
Lee M. Smith...... Corporate Secretary and Vice President, Government Relations
(since 1999) of MONY Life and of The MONY Group Inc. Vice
President, Government Relations (1985 to 1999) of MONY Life.
No officer or director listed above receives any compensation from MONY
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.
State Regulation
The Company is subject to the laws of the State of New York governing
insurance companies and to regulation by the Superintendent of Insurance of New
York. 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
Superintendent of Insurance of New York and with regulatory authorities of
other states on or before March 1st of 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 Superintendent of Insurance or his agents, and
subject to full examination of Company's operations at periodic intervals.
Records and Accounts
Andesa, TPA, Inc., Suite 502, 1605 N. Cedar Crest Boulevard, Allentown,
Pennsylvania, 18104, will act as transfer agent on behalf of the Company as it
relates to the policies described in this Prospectus. In the role of transfer
agent, Andesa will perform administrative functions, such as decreases,
increases, surrenders, and partial surrenders, fund allocation changes and
transfers on behalf of the Company.
All records and accounts relating to the Separate Account and the Funds will
be maintained by the Company. All financial transactions will be handled by the
Company. All reports required to be made and information required to be given
will be provided by Andesa on behalf of the Company.
56
Legal Proceedings
The Company, like other life insurance companies, is involved in lawsuits,
including class action lawsuits. In some class action and other lawsuits
involving insurance companies, substantial damages have been sought and/or
material settlement payments have been made. Although the Company cannot
predict the outcome of any litigation with certainty, the Company believes that
at the present time there are no pending or threatened lawsuits that are
reasonably likely to have a material adverse impact on MONY Variable Account L.
Legal Matters
Legal matters have been passed upon by Frederick C. Tedeschi, then Vice
President and Chief Counsel -- Operations 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 New York law, and
(4) The validity of the forms of the policies under New York law.
Frederick C. Tedeschi, then Vice President and Chief Counsel -- Operations
of MONY Life Insurance Company has passed upon legal matters relating to the
federal securities laws and Robert Levy, Vice President -- Chief Tax Counsel of
MONY Life Insurance Company has passed upon legal matters relating to 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 located at 450 5th Street, NW, Washington, D.C., 20549, (202)
942-4300 upon payment of the SEC's prescribed fees.
Independent Accountants
The audited financial statements for MONY Variable Account L and for the
Company as of December 31, 2001 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 report of
PricewaterhouseCoopers LLP, given on 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 each of the subaccounts of MONY Custom
Equity Master, MONY Custom Estate Master, Strategist and MONYEquity Master
policies of MONY Variable Account L, the combined financial statements of MONY
Variable Account L and the Company as of December 31, 2001 have been audited by
PricewaterhouseCoopers LLP. The financial statements of the Company should be
distinguished from the financial statements of MONY Variable Account L and
should be considered only as bearing upon the ability of the Company to meet
its obligations under the Policies.
-----------------
The complete registration statement and other filed documents for MONY 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 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.
57
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
With respect to MONY Variable Account L (Corporate Sponsored Variable Universal Life)
No financial statements are included because although MONY Variable Account L commenced operations in 1990, the
subaccounts available to policyholders had not commenced operations as of June 30, 2002.
Page
-----
With respect to MONY Variable Account L (MONY Variable Universal Life)
Unaudited statement of assets and liabilities as of June 30, 2002................................................. F-4
Unaudited statement of operations for the period ended June 30, 2002.............................................. F-10
Statement of changes in net assets for the period ended June 30, 2002............................................. F-16
Notes to financial statements..................................................................................... F-22
With respect to MONY Variable Account L (MONY Survivorship Variable Universal Life)
Unaudited statement of assets and liabilities as of June 30, 2002................................................. F-25
Unaudited statement of operations for the period ended June 30, 2002.............................................. F-30
Statement of changes in net assets for the period ended June 30, 2002............................................. F-34
Notes to financial statements..................................................................................... F-38
With respect to MONY Variable Account L (MONY Custom Equity Master)
Unaudited statement of assets and liabilities as of June 30, 2002................................................. F-41
Unaudited statement of operations for the six-month period ended June 30, 2002.................................... F-46
Statement of changes in net assets for the periods ended June 30, 2002 and December 31, 2001...................... F-52
Notes to financial statements..................................................................................... F-62
With respect to MONY Variable Account L (MONY Custom Estate Master)
Unaudited statement of assets and liabilities as of June 30, 2002................................................. F-68
Unaudited statement of operations for the six-month period ended June 30, 2002.................................... F-74
Statement of changes in net assets for the periods ended June 30, 2002 and December 31, 2001...................... F-82
Notes to financial statements..................................................................................... F-92
With respect to MONY Variable Account L (Strategist)
Unaudited statement of assets and liabilities as of June 30, 2002................................................. F-96
Unaudited statement of operations for the six-month period ended June 30, 2002.................................... F-102
Statement of changes in net assets for the periods ended June 30, 2002 and December 31, 2001...................... F-108
Notes to financial statements..................................................................................... F-118
With respect to MONY Variable Account L (Combined)
Unaudited combined statement of assets and liabilities as of June 30, 2002........................................ F-123
Unaudited combined statement of operations for the six-month period ended June 30, 2002........................... F-124
Statement of changes in net assets for the periods ended June 30, 2002 and December 31, 2001...................... F-125
Notes to financial statements..................................................................................... F-126
F-1
Page
-----
With respect to MONY Variable Account L (MONY Custom Equity Master)
Report of Independent Accountants.............................................................................. F-130
Statement of assets and liabilities as of December 31, 2001.................................................... F-132
Statement of operations for the period ended December 31, 2001................................................. F-136
Statement of changes in net assets for the years ended December 31, 2001 and December 31, 2000................. F-140
Notes to financial statements.................................................................................. F-149
With respect to MONY Variable Account L (MONY Custom Estate Master)
Report of Independent Accountants.............................................................................. F-153
Statement of assets and liabilities as of December 31, 2001.................................................... F-155
Statement of operations for the period ended December 31, 2001................................................. F-160
Statement of changes in net assets for the years ended December 31, 2001 and December 31, 2000................. F-164
Notes to financial statements.................................................................................. F-172
With respect to MONY Variable Account L (Strategist and MONYEquity Master)
Report of Independent Accountants.............................................................................. F-177
Statement of assets and liabilities as of December 31, 2001.................................................... F-179
Statement of operations for the period ended December 31, 2001................................................. F-184
Statement of changes in net assets for the years ended December 31, 2001 and December 31, 2000................. F-191
Notes to financial statements.................................................................................. F-200
With respect to MONY Variable Account L (Combined)
Report of Independent Accountants.............................................................................. F-206
Combined statement of assets and liabilities as of December 31, 2001........................................... F-207
Combined statement of operations for the period ended December 31, 2001........................................ F-208
Combined statement of changes in net assets for the periods ended December 31, 2001 and December 31, 2000...... F-209
Notes to financial statements.................................................................................. F-210
With respect to MONY Life Insurance Company
Unaudited interim condensed consolidated balance sheets as of June 30, 2002 and December 31, 2001.............. F-215
Unaudited interim condensed consolidated statements of income and comprehensive income for the three-month
periods ended June 30, 2002 and 2001......................................................................... F-216
Unaudited interim condensed consolidated statements of income and comprehensive income for the six-month
periods ended June 30, 2002 and 2001......................................................................... F-217
Unaudited interim condensed consolidated statement of changes in shareholder's equity for the six-month period
ended June 30, 2002.......................................................................................... F-218
Unaudited interim condensed consolidated statements of cash flows for the six-month periods ended June 30, 2002
and 2001..................................................................................................... F-219
Notes to unaudited interim condensed consolidated financial statements......................................... F-220
F-2
Page
-----
With respect to MONY Life Insurance Company:
Report of Independent Accountants......................................................................... F-231
Consolidated balance sheets as of December 31, 2001 and 2000.............................................. F-232
Consolidated statements of income and comprehensive income for the years ended December 31, 2001, 2000
and 1999................................................................................................ F-233
Consolidated statements of changes in shareholder's equity for the years ended December 31, 2001, 2000 and
1999.................................................................................................... F-234
Consolidated statements of cash flows for the years ended December 31, 2001, 2000 and 1999................ F-235
Notes to consolidated financial statements................................................................ F-236
F-3
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
MONY Variable Universal Life
------------------------------------------
Enterprise
Alger American Fund Accumulation Trust
-------------------- --------------------
Equity Growth &
Balanced Mid Cap Income Income
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ----------
ASSETS
Shares held in respective
Funds....................... 507 2,079 3,830 8,592
====== ======= ======= =======
Investments at cost........... $6,328 $34,468 $19,681 $43,586
====== ======= ======= =======
Investments in respective
Funds, at net asset value... $6,005 $30,885 $18,521 $39,222
Amount due from MONY.......... 1 3 3 1
Amount due from respective
Funds....................... 0 0 0 0
------ ------- ------- -------
Total assets........... 6,006 30,888 18,524 39,223
------ ------- ------- -------
LIABILITIES
Amount due to MONY............ 7 37 21 40
Amount due to respective Funds 1 3 3 1
------ ------- ------- -------
Total liabilities...... 8 40 24 41
------ ------- ------- -------
Net assets.................... $5,998 $30,848 $18,500 $39,182
====== ======= ======= =======
Net assets consist of:
Contractholders' net
payments................... $6,247 $34,505 $19,637 $43,624
Undistributed net
investment income (loss)... 80 (37) (21) (40)
Accumulated net realized
gain (loss) on investments. (6) (37) 44 (38)
Net unrealized depreciation
of investments............. (323) (3,583) (1,160) (4,364)
------ ------- ------- -------
Net assets.................... $5,998 $30,848 $18,500 $39,182
====== ======= ======= =======
Number of units outstanding*.. 626 3,406 1,916 4,333
------ ------- ------- -------
Net asset value per unit
outstanding*................ $ 9.58 $ 9.06 $ 9.66 $ 9.04
====== ======= ======= =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
MONY Variable Universal Life
- --------------------------------------------------------------------------------------
INVESCO
Variable
Investment
Enterprise Accumulation Trust Fund
- --------------------------------------------------------------------------- ----------
Globally Small Small
Socially Multi-Cap Company Company Total Financial
Growth Responsive Managed Growth Growth Value Return Services
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
13,419 1,420 319 2,729 6,007 1,828 2,006 358
======= ======= ====== ======= ======= ======= ======= ======
$66,406 $14,623 $5,916 $20,762 $46,278 $38,111 $20,047 $4,451
======= ======= ====== ======= ======= ======= ======= ======
$60,188 $13,453 $5,247 $18,308 $40,484 $36,885 $19,955 $4,284
17 0 15 15 2 2 1 1
0 0 0 0 0 0 0 0
------- ------- ------ ------- ------- ------- ------- ------
60,205 13,453 5,262 18,323 40,486 36,887 19,956 4,285
------- ------- ------ ------- ------- ------- ------- ------
65 18 6 23 50 28 17 4
17 0 15 15 2 2 1 1
------- ------- ------ ------- ------- ------- ------- ------
82 18 21 38 52 30 18 5
------- ------- ------ ------- ------- ------- ------- ------
$60,123 $13,435 $5,241 $18,285 $40,434 $36,857 $19,938 $4,280
======= ======= ====== ======= ======= ======= ======= ======
$66,532 $14,641 $5,950 $20,801 $46,312 $38,093 $19,917 $4,452
(65) (18) (6) (23) (51) (28) 110 (4)
(126) (18) (34) (39) (33) 18 3 (1)
(6,218) (1,170) (669) (2,454) (5,794) (1,226) (92) (167)
------- ------- ------ ------- ------- ------- ------- ------
$60,123 $13,435 $5,241 $18,285 $40,434 $36,857 $19,938 $4,280
======= ======= ====== ======= ======= ======= ======= ======
6,687 1,399 588 2,131 4,451 3,469 1,986 433
------- ------- ------ ------- ------- ------- ------- ------
$ 8.99 $ 9.60 $ 8.92 $ 8.58 $ 9.08 $ 10.62 $ 10.04 $ 9.88
======= ======= ====== ======= ======= ======= ======= ======
F-5
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Variable Universal Life
-----------------------------------------------------
INVESCO Variable
Investment Fund Janus Aspen Series Fund
---------------------------- -----------------------
Health Capital Flexible
Sciences Telecommunications Appreciation Income
Subaccount Subaccount Subaccount Subaccount
---------- ------------------ ------------ ----------
ASSETS
Shares held in respective
Funds....................... 354 2,984 598 1,111
====== ======= ======= =======
Investments at cost........... $5,809 $11,544 $11,823 $13,500
====== ======= ======= =======
Investments in respective
Funds, at net asset value... $5,489 $ 8,939 $11,426 $13,555
Amount due from MONY.......... 1 0 2 1
Amount due from respective
Funds....................... 0 0 0 0
------ ------- ------- -------
Total assets........... 5,490 8,939 11,428 13,556
------ ------- ------- -------
LIABILITIES
Amount due to MONY............ 5 16 12 13
Amount due to respective Funds 1 0 2 1
------ ------- ------- -------
Total liabilities...... 6 16 14 14
------ ------- ------- -------
Net assets.................... $5,484 $ 8,923 $11,414 $13,542
====== ======= ======= =======
Net assets consist of:
Contractholders' net
payments................... $5,821 $11,803 $11,595 $13,331
Undistributed net
investment income (loss)... (5) (16) 221 152
Accumulated net realized
gain (loss) on investments. (12) (259) (5) 4
Net unrealized appreciation
(depreciation) of
investments................ (320) (2,605) (397) 55
------ ------- ------- -------
Net assets.................... $5,484 $ 8,923 $11,414 $13,542
====== ======= ======= =======
Number of units outstanding*.. 599 1,277 1,129 1,333
------ ------- ------- -------
Net asset value per unit
outstanding*................ $ 9.16 $ 6.99 $ 10.11 $ 10.16
====== ======= ======= =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-6
MONY Variable Universal Life
- ------------------------------------------------------------------------------------------
Janus Aspen
Series Fund Lord Abbett Series Fund MFS Variable Insurance Trust
- ------------- ------------------------------- ------------------------------------------
International Bond Growth & Mid Cap Mid Cap New Total
Growth Debenture Income Value Growth Discovery Return Utilities
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,194 1,097 1,318 408 3,035 1,494 933 345
======= ======= ======= ====== ======= ======= ======= ======
$49,270 $11,409 $30,607 $6,548 $20,752 $21,014 $17,261 $4,792
======= ======= ======= ====== ======= ======= ======= ======
$44,809 $11,473 $28,239 $6,264 $15,508 $18,506 $16,581 $4,300
2 1 3 0 0 2 (4) 0
0 0 0 0 0 0 0 0
------- ------- ------- ------ ------- ------- ------- ------
44,811 11,474 28,242 6,264 15,508 18,508 16,577 4,300
------- ------- ------- ------ ------- ------- ------- ------
63 15 37 6 25 26 18 7
2 1 3 0 0 2 (4) 0
------- ------- ------- ------ ------- ------- ------- ------
65 16 40 6 25 28 14 7
------- ------- ------- ------ ------- ------- ------- ------
$44,746 $11,458 $28,202 $6,258 $15,483 $18,480 $16,563 $4,293
======= ======= ======= ====== ======= ======= ======= ======
$49,149 $11,405 $30,625 $6,547 $20,911 $21,030 $17,158 $4,722
101 (15) (37) (6) (25) (26) 103 65
(43) 4 (18) 1 (159) (16) (18) (2)
(4,461) 64 (2,368) (284) (5,244) (2,508) (680) (492)
------- ------- ------- ------ ------- ------- ------- ------
$44,746 $11,458 $28,202 $6,258 $15,483 $18,480 $16,563 $4,293
======= ======= ======= ====== ======= ======= ======= ======
4,709 1,105 3,071 636 2,100 2,116 1,661 476
------- ------- ------- ------ ------- ------- ------- ------
$ 9.50 $ 10.36 $ 9.18 $ 9.84 $ 7.37 $ 8.73 $ 9.97 $ 9.02
======= ======= ======= ====== ======= ======= ======= ======
F-7
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Variable Universal Life
---------------------------------------------
The Universal
Institutional
MONY Series Fund Funds, Inc.
-------------------------------- -------------
Government Long Money Emerging
Securities Term Bond Market Equities
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- -------------
ASSETS
Shares held in respective Funds........................... 4,626 1,868 119,188 2,355
======= ======= ======== =======
Investments at cost....................................... $51,751 $23,892 $119,188 $17,412
======= ======= ======== =======
Investments in respective Funds, at net asset value....... $52,712 $24,478 $119,188 $16,039
Amount due from MONY...................................... 1 4 0 1
Amount due from respective Funds.......................... 0 0 0 0
------- ------- -------- -------
Total assets....................................... 52,713 24,482 119,188 16,040
------- ------- -------- -------
LIABILITIES
Amount due to MONY........................................ 64 28 97 24
Amount due to respective Funds............................ 1 4 0 1
------- ------- -------- -------
Total liabilities.................................. 65 32 97 25
------- ------- -------- -------
Net assets................................................ $52,648 $24,450 $119,091 $16,015
======= ======= ======== =======
Net assets consist of:
Contractholders' net payments............................ $51,781 $23,880 $118,947 $17,405
Undistributed net investment income (loss)............... (64) (28) 144 (24)
Accumulated net realized gain (loss) on investments...... (30) 12 0 7
Net unrealized appreciation (depreciation) of investments 961 586 0 (1,373)
------- ------- -------- -------
Net assets................................................ $52,648 $24,450 $119,091 $16,015
======= ======= ======== =======
Number of units outstanding*.............................. 5,188 2,440 11,867 1,660
------- ------- -------- -------
Net asset value per unit outstanding*..................... $ 10.15 $ 10.02 $ 10.04 $ 9.65
======= ======= ======== =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-8
MONY Variable Universal Life
- -----------------------------------------------------------------------------------------------------
The Universal
Institutional Funds, Inc. PBHG Insurance Series Funds PIMCO Variable Insurance Trust
- ------------------------ -------------------------- -------------------------------------
Global U.S. Real Mid Cap Select Global StockPlus
Value Equity Estate Value Value Bond Real Return Growth & Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ------------ ---------- ---------- ---------- ---------- ----------- --------------- --------
66 1,215 3,275 424 1,430 2,059 10,819 206,194
====== ======= ======= ====== ======= ======= ======= ========
$ 812 $16,095 $42,587 $6,334 $14,378 $22,494 $96,650 $936,579
====== ======= ======= ====== ======= ======= ======= ========
$ 800 $16,228 $39,641 $5,986 $15,639 $22,832 $87,752 $879,821
0 2 1 1 1 2 10 92
0 0 0 0 0 0 0 0
------ ------- ------- ------ ------- ------- ------- --------
800 16,230 39,642 5,987 15,640 22,834 87,762 879,913
------ ------- ------- ------ ------- ------- ------- --------
1 21 48 3 20 20 104 989
0 2 1 1 1 2 10 92
------ ------- ------- ------ ------- ------- ------- --------
1 23 49 4 21 22 114 1,081
------ ------- ------- ------ ------- ------- ------- --------
$ 799 $16,207 $39,593 $5,983 $15,619 $22,812 $87,648 $878,832
====== ======= ======= ====== ======= ======= ======= ========
$ 809 $16,093 $42,592 $6,341 $14,295 $22,200 $96,713 $935,864
(1) (21) (48) (3) 74 266 (100) 604
3 2 (5) (7) (11) 8 (67) (878)
(12) 133 (2,946) (348) 1,261 338 (8,898) (56,758)
------ ------- ------- ------ ------- ------- ------- --------
$ 799 $16,207 $39,593 $5,983 $15,619 $22,812 $87,648 $878,832
====== ======= ======= ====== ======= ======= ======= ========
80 1,499 4,114 644 1,424 2,165 9,632
------ ------- ------- ------ ------- ------- -------
$10.03 $ 10.81 $ 9.62 $ 9.30 $ 10.97 $ 10.54 $ 9.10
====== ======= ======= ====== ======= ======= =======
F-9
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the six months ended June 30, 2002 (unaudited)
MONY Variable Universal Life
--------------------------------------------
Enterprise Accumulation
Alger American Fund Trust
-------------------- ----------------------
Equity Growth &
Balanced Mid Cap Income Income
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ----------
Dividend income................ $ 87 $ 0 $ 0 $ 0
Distribution from capital
gains........................ 0 0 0 0
Mortality and expense risk
charges...................... (7) (37) (21) (40)
----- ------- ------- -------
Net investment income (loss)... 80 (37) (21) (40)
----- ------- ------- -------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................. (6) (37) 44 (38)
Net change in unrealized
depreciation of investments. (323) (3,583) (1,160) (4,364)
----- ------- ------- -------
Net realized and unrealized
loss on investments.......... (329) (3,620) (1,116) (4,402)
----- ------- ------- -------
Net increase (decrease) in
net assets resulting from
operations................... $(249) $(3,657) $(1,137) $(4,442)
===== ======= ======= =======
See notes to financial statements.
F-10
MONY Variable Universal Life
- --------------------------------------------------------------------------------------
INVESCO
Variable
Investment
Enterprise Accumulation Trust Funds
- --------------------------------------------------------------------------- ----------
Globally Small Small
Socially Multi-Cap Company Company Total Financial
Growth Responsive Managed Growth Growth Value Return Services
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $127 $ 0
0 0 0 0 0 0 0 0
(65) (18) (6) (23) (51) (28) (17) (4)
------- ------- ----- ------- ------- ------- ---- -----
(65) (18) (6) (23) (51) (28) 110 (4)
------- ------- ----- ------- ------- ------- ---- -----
(126) (18) (34) (39) (33) 18 3 (1)
(6,218) (1,170) (669) (2,454) (5,794) (1,226) (92) (167)
------- ------- ----- ------- ------- ------- ---- -----
(6,344) (1,188) (703) (2,493) (5,827) (1,208) (89) (168)
------- ------- ----- ------- ------- ------- ---- -----
$(6,409) $(1,206) $(709) $(2,516) $(5,878) $(1,236) $ 21 $(172)
======= ======= ===== ======= ======= ======= ==== =====
F-11
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the six months ended June 30, 2002 (unaudited)
MONY Variable Universal Life
----------------------------------------------------
INVESCO Variable
Investment Funds Janus Aspen Series Fund
---------------------------- ----------------------
Health Capital Flexible
Sciences Telecommunications Appreciation Income
Subaccount Subaccount Subaccount Subaccount
---------- ------------------ ------------ ----------
Dividend income................................................ $ 0 $ 0 $ 233 $165
Distribution from capital gains................................ 0 0 0 0
Mortality and expense risk charges............................. (5) (16) (12) (13)
----- ------- ----- ----
Net investment income (loss)................................... (5) (16) 221 152
----- ------- ----- ----
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments....................... (12) (259) (5) 4
Net change in unrealized appreciation (depreciation) of
investments................................................. (320) (2,605) (397) 55
----- ------- ----- ----
Net realized and unrealized gain (loss) on investments......... (332) (2,864) (402) 59
----- ------- ----- ----
Net increase (decrease) in net assets resulting from operations $(337) $(2,880) $(181) $211
===== ======= ===== ====
See notes to financial statements.
F-12
MONY Variable Universal Life
- -----------------------------------------------------------------------------------------
Lord Abbett Series Fund MFS Variable Insurance Trust
- --------------------------------------------- ------------------------------------------
International Bond Growth & Mid Cap Mid Cap New Total
Growth Debenture Income Value Growth Discovery Return Utilities
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 164 $ 0 $ 0 $ 0 $ 0 $ 0 $ 121 $ 72
0 0 0 0 0 0 0 0
(63) (15) (37) (6) (25) (26) (18) (7)
------- ---- ------- ----- ------- ------- ----- -----
101 (15) (37) (6) (25) (26) 103 65
------- ---- ------- ----- ------- ------- ----- -----
(43) 4 (18) 1 (159) (16) (18) (2)
(4,461) 64 (2,368) (284) (5,244) (2,508) (680) (492)
------- ---- ------- ----- ------- ------- ----- -----
(4,504) 68 (2,386) (283) (5,403) (2,524) (698) (494)
------- ---- ------- ----- ------- ------- ----- -----
$(4,403) $ 53 $(2,423) $(289) $(5,428) $(2,550) $(595) $(429)
======= ==== ======= ===== ======= ======= ===== =====
F-13
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the six months ended June 30, 2002 (unaudited)
MONY Variable Universal Life
---------------------------------------------
The
Universal
Institutional
MONY Series Fund Funds, Inc.
------------------------------- -------------
Government Long Term Money Emerging
Securities Bond Market Equities
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- -------------
Dividend income............... $ 0 $ 0 $241 $ 0
Distribution from capital
gains....................... 0 0 0 0
Mortality and expense risk
charges..................... (64) (28) (97) (24)
---- ---- ---- --------
Net investment income (loss).. (64) (28) 144 (24)
---- ---- ---- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ (30) 12 0 7
Net change in unrealized
appreciation
(depreciation) of
investments................ 961 586 0 (13,713)
---- ---- ---- --------
Net realized and unrealized
gain (loss) on investments.. 931 598 0 (1,366)
---- ---- ---- --------
Net increase (decrease) in
net assets resulting from
operations.................. $867 $570 $144 $ (1,390)
==== ==== ==== ========
See notes to financial statements.
F-14
MONY Variable Universal Life
- -------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc. PBHG Insurance Series Funds PIMCO Variable Insurance Trust
- -------------------------- -------------------------- -------------------------------------
Global U.S. Real Mid Cap Select Global StockPlus
Value Equity Estate Value Value Bond Real Return Growth & Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ------------ ---------- ---------- ---------- ---------- ----------- --------------- --------
$ 0 $ 0 $ 0 $ 0 $ 94 $286 $ 4 $ 1,594
0 0 0 0 0 0 0 0
(1) (21) (48) (3) (20) (20) (104) (990)
---- ---- ------- ----- ------ ---- ------- --------
(1) (21) (48) (3) 74 266 (100) 604
---- ---- ------- ----- ------ ---- ------- --------
3 2 (5) (7) (11) 8 (67) (878)
(12) 133 (2,946) (348) 1,261 338 (8,898) (56,758)
---- ---- ------- ----- ------ ---- ------- --------
(9) 135 (2,951) (355) 1,250 346 (8,965) (57,636)
---- ---- ------- ----- ------ ---- ------- --------
$(10) $114 $(2,999) $(358) $1,324 $612 $(9,065) $(57,032)
==== ==== ======= ===== ====== ==== ======= ========
F-15
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (unaudited)
MONY Variable Universal Life
--------------------------------------------------------------------------
Enterprise
Accumulation
Alger American Fund Trust
------------------------------------------------------- ------------------
Equity Growth &
Balanced Mid Cap Income Income
Subaccount Subaccount Subaccount Subaccount
------------------ ------------------ ------------------ ------------------
For the period For the period For the period For the period
February 7, 2002** February 7, 2002** February 7, 2002** February 6, 2002**
through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
------------------ ------------------ ------------------ ------------------
From operations:
Net investment income (loss)..................... $ 80 $ (37) $ (21) $ (40)
Net realized gain (loss) on investments.......... (6) (37) 44 (38)
Net change in unrealized depreciation of
investments.................................... (323) (3,583) (1,160) (4,364)
------ ------- ------- -------
Net increase (decrease) in net assets resulting
from operations.................................. (249) (3,657) (1,137) (4,442)
------ ------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.......... 6,937 37,277 23,289 48,216
Net asset value of units redeemed or used to
meet contract obligations...................... (690) (2,772) (3,652) (4,592)
------ ------- ------- -------
Net increase from unit transactions............... 6,247 34,505 19,637 43,624
------ ------- ------- -------
Net increase in net assets........................ 5,998 30,848 18,500 39,182
Net assets beginning of period.................... 0 0 0 0
------ ------- ------- -------
Net assets end of period*......................... $5,998 $30,848 $18,500 $39,182
====== ======= ======= =======
Unit transactions:
Units outstanding beginning of period............ 0 0 0 0
Units issued during the period................... 698 3,712 2,294 4,841
Units redeemed during the period................. (72) (306) (378) (508)
------ ------- ------- -------
Units outstanding end of period................... 626 3,406 1,916 4,333
====== ======= ======= =======
- ----------
* Includes undistributed net investment income
(loss) of: $ 80 $ (37) $ (21) $ (40)
====== ======= ======= =======
** Commencement of operations
See notes to financial statements.
F-16
MONY Variable Universal Life
- ------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ------------------------------------------------------------------------------------------------------------------
Globally MultiCap Small Company Small Company
Growth Socially Responsive Managed Growth Growth Value
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------------ ------------------- ------------------ ------------------ ------------------ ------------------
For the period For the period For the period For the period For the period For the period
February 6, 2002** February 21, 2002** February 6, 2002** February 8, 2002** February 6, 2002** February 6, 2002**
through through through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
- ------------------ ------------------- ------------------ ------------------ ------------------ ------------------
$ (65) $ (18) $ (6) $ (23) $ (51) $ (28)
(126) (18) (34) (39) (33) 18
(6,218) (1,170) (669) (2,454) (5,794) (1,226)
-------- ------- ------ ------- ------- -------
(6,409) (1,206) (709) (2,516) (5,878) (1,236)
-------- ------- ------ ------- ------- -------
77,246 16,732 6,437 24,849 51,266 39,864
(10,713) (2,091) (487) (4,048) (4,954) (1,771)
-------- ------- ------ ------- ------- -------
66,532 14,641 5,950 20,801 46,312 38,093
-------- ------- ------ ------- ------- -------
60,123 13,435 5,241 18,285 40,434 36,857
0 0 0 0 0 0
-------- ------- ------ ------- ------- -------
$ 60,123 $13,435 $5,241 $18,285 $40,434 $36,857
======== ======= ====== ======= ======= =======
0 0 0 0 0 0
7,879 1,618 643 2,603 4,996 3,636
(1,192) (218) (55) (472) (545) (167)
-------- ------- ------ ------- ------- -------
6,687 1,400 588 2,131 4,451 3,469
======== ======= ====== ======= ======= =======
$ (65) $ (18) $ (6) $ (23) $ (51) $ (28)
======== ======= ====== ======= ======= =======
Financial
Total Return Services
Subaccount Subaccount
- ------------------ ------------------
For the period For the period
February 7, 2002** February 8, 2002**
through through
June 30, 2002 June 30, 2002
- ------------------ ------------------
$ 110 $ (4)
3 (1)
(92) (167)
------- ------
21 (172)
------- ------
20,566 4,867
(649) (415)
------- ------
19,917 4,452
------- ------
19,938 4,280
0 0
------- ------
$19,938 $4,280
======= ======
0 0
2,051 475
(65) (42)
------- ------
1,986 433
======= ======
$ 110 $ (4)
======= ======
F-17
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (unaudited) (continued)
MONY Variable Universal Life
--------------------------------------------------------------------------
INVESCO Variable Investment Funds Janus Aspen Series Fund
------------------------------------ ------------------------------------
Health Capital Flexible
Sciences Telecommunications Appreciation Income
Subaccount Subaccount Subaccount Subaccount
------------------ ------------------ ------------------ ------------------
For the period For the period For the period For the period
February 8, 2002** February 7, 2002** February 6, 2002** February 8, 2002**
through through June 30, through through
June 30, 2002 2002 June 30, 2002 June 30, 2002
------------------ ------------------ ------------------ ------------------
From operations:
Net investment income (loss). $ (5) $ (16) $ 221 $ 152
Net realized gain (loss) on
investments................ (12) (259) (5) 4
Net change in unrealized
appreciation
(depreciation) of
investments................ (320) (2,605) (397) 55
------ ------- ------- -------
Net increase (decrease) in
net assets resulting from
operations................... (337) (2,880) (181) 211
------ ------- ------- -------
From unit transactions:
Net proceeds from the
issuance of units.......... 6,438 15,170 12,195 14,246
Net asset value of units
redeemed or used to meet
contract obligations....... (617) (3,367) (600) (915)
------ ------- ------- -------
Net increase from unit
transactions................. 5,821 11,803 11,595 13,331
------ ------- ------- -------
Net increase in net assets.... 5,484 8,923 11,414 13,542
Net assets beginning of period 0 0 0 0
------ ------- ------- -------
Net assets end of period...... $5,484 $ 8,923 $11,414 $13,542
====== ======= ======= =======
Unit transactions:
Units outstanding beginning
of period.................. 0 0 0 0
Units issued during the
period..................... 666 1,759 1,189 1,423
Units redeemed during the
period..................... (67) (482) (59) (90)
------ ------- ------- -------
Units outstanding end of
period....................... 599 1,277 1,129 1,333
====== ======= ======= =======
- ----------
* Includes undistributed net
investment income (loss)
of: $ (5) $ (16) $ 221 $ 152
====== ======= ======= =======
** Commencement of operations
See notes to financial statements.
F-18
MONY Variable Universal Life
- ----------------------------------------------------------------------------------------------
Janus Aspen
Series Fund Lord Abbett Series Fund
- ------------------ ------------------------------------------------------- ------------------
International Growth &
Growth Bond Debenture Income Mid Cap Value Mid Cap Growth
Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------------ ------------------ ------------------ ------------------ ------------------
For the period For the period For the period For the period For the period
February 7, 2002** February 7, 2002** February 7, 2002** February 8, 2002** February 8, 2002**
through through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
- ------------------ ------------------ ------------------ ------------------ ------------------
$ 101 $ (15) $ (37) $ (6) $ (25)
(43) 4 (18) 1 (159)
(4,461) 64 (2,368) (284) (5,244)
------- ------- ------- ------ -------
(4,403) 53 (2,423) (289) (5,428)
------- ------- ------- ------ -------
50,736 11,857 31,950 6,934 24,956
(1,587) (452) (1,325) (387) (4,045)
------- ------- ------- ------ -------
49,149 11,405 30,625 6,547 20,911
------- ------- ------- ------ -------
44,746 11,458 28,202 6,258 15,483
0 0 0 0 0
------- ------- ------- ------ -------
$44,746 $11,458 $28,202 $6,258 $15,483
======= ======= ======= ====== =======
0 0 0 0 0
4,876 1,149 3,215 675 2,649
(167) (44) (144) (39) (549)
------- ------- ------- ------ -------
4,709 1,105 3,071 636 2,100
======= ======= ======= ====== =======
$ 101 $ (15) $ (37) $ (6) $ (25)
======= ======= ======= ====== =======
MFS Variable Insurance Trust
- --------------------------------------------------------
New Discovery Total Return Utilities
Subaccount Subaccount Subaccount
- ------------------ ------------------ ------------------
For the period For the period For the period
February 7, 2002** February 8, 2002** February 7, 2002**
through through through
June 30, 2002 June 30, 2002 June 30, 2002
- ------------------ ------------------ ------------------
$ (26) $ 103 $ 65
(16) (18) (2)
(2,508) (680) (492)
------- ------- -------
(2,550) (595) (429)
------- ------- -------
23,234 18,209 6,459
(2,204) (1,051) (1,737)
------- ------- -------
21,030 17,158 4,722
------- ------- -------
18,480 16,563 4,293
0 0 0
------- ------- -------
$18,480 $16,563 $ 4,293
======= ======= =======
0 0 0
2,368 1,756 668
(252) (105) (192)
------- ------- -------
2,116 1,651 476
======= ======= =======
$ (26) $ 103 $ 659
======= ======= =======
F-19
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (unaudited) (continued)
MONY Variable Universal Life
--------------------------------------------------------------------------
MONY Series Fund
--------------------------------------------------------------------------
Government Emerging
Securities Long Term Bond Money Market Equities
Subaccount Subaccount Subaccount Subaccount
------------------ ------------------ ------------------ ------------------
For the period For the period For the period For the period
February 7, 2002** February 7, 2002** February 7, 2002** February 7, 2002**
through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
------------------ ------------------ ------------------ ------------------
From operations:
Net investment income (loss). $ (64) $ (28) $ 144 $ (24)
Net realized gain (loss) on
investments................ (30) 12 0 7
Net change in unrealized
appreciation
(depreciation) of
investments................ 961 586 0 (1,373)
------- ------- -------- -------
Net increase (decrease) in
net assets resulting from
operations................... 867 570 144 (1,390)
------- ------- -------- -------
From unit transactions:
Net proceeds from the
issuance of units.......... 55,042 25,150 139,638 19,321
Net asset value of units
redeemed or used to meet
contract obligations....... (3,261) (1,270) (20,691) (1,916)
------- ------- -------- -------
Net increase from unit
transactions................. 51,781 23,880 118,947 17,405
------- ------- -------- -------
Net increase in net assets.... 52,648 24,450 119,091 16,015
Net assets beginning of period 0 0 0 0
------- ------- -------- -------
Net assets end of period*..... $52,648 $24,450 $119,091 $16,015
======= ======= ======== =======
Unit transactions:
Units outstanding beginning
of period.................. 0 0 0 0
Units issued during the
period..................... 5,509 2,567 13,929 1,859
Units redeemed during the
period..................... (321) (127) (2,062) (199)
------- ------- -------- -------
Units outstanding end of
period....................... 5,188 2,440 11,867 1,660
======= ======= ======== =======
- ----------
* Includes undistributed net
investment income (loss)
of: $ (64) $ (28) $ 144 $ (24)
======= ======= ======== =======
** Commencement of operations
See notes to financial statements.
F-20
- ---------------------------------------
The Universal Institutional Funds, Inc.
- -------------------------------------
Global
Value Equity U.S. Real Estate
Subaccount Subaccount
- ------------------- ------------------
For the period For the period
February 20, 2002** February 7, 2002**
through through
June 30, 2002 June 30, 2002
- ------------------- ------------------
$ (1) $ (21)
3 2
(12) 133
----- -------
(10) 114
----- -------
959 16,563
(150) (470)
----- -------
809 16,093
----- -------
799 16,207
0 0
----- -------
$ 799 $16,207
===== =======
0 0
95 1,542
(15) (43)
----- -------
80 1,499
===== =======
$ (1) $ (21)
===== =======
MONY Variable Universal Life
- --------------------------------------------------------------------------------------------
PBHG Insurance Series Funds PIMCO Variable Insurance Trust
- ------------------------------------ -------------------------------------------------------
StockPlus
Mid Cap Value Select Value Global Bond Real Return Growth & Income
Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------------ ------------------ ------------------ ------------------ ------------------
For the period For the period For the period For the period For the period
February 7, 2002** February 8, 2002** February 8, 2002** February 8, 2002** February 8, 2002**
through through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 Total
- ------------------ ------------------ ------------------ ------------------ ------------------ ----------
$ (48) $ (3) $ 74 $ 266 $ (100) $ 604
(5) (7) (11) 8 (67) (878)
(2,946) (348) 1,261 338 (8,898) (56,758)
------- ------ ------- ------- -------- ----------
(2,999) (358) 1,324 612 (9,065) (57,032)
------- ------ ------- ------- -------- ----------
44,074 6,693 14,875 23,636 100,093 1,025,974
(1,482) (352) (580) (1,436) (3,380) (90,110)
------- ------ ------- ------- -------- ----------
42,592 6,341 14,295 22,200 96,713 935,864
------- ------ ------- ------- -------- ----------
39,593 5,983 15,619 22,812 87,648 878,832
0 0 0 0 0 0
------- ------ ------- ------- -------- ----------
$39,593 $5,983 $15,619 $22,812 $ 87,648 $ 878,832
======= ====== ======= ======= ======== ==========
0 0 0 0 0
4,268 682 1,477 2,301 9,673
(154) (38) (53) (136) (41)
------- ------ ------- ------- --------
4,114 644 1,424 2,165 9,632
======= ====== ======= ======= ========
$ (48) $ (3) $ 74 $ 266 $ (100) $ 604
======= ====== ======= ======= ======== ==========
F-21
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. Organization and Business
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company of
America ("MONY"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist), Variable Universal Life (MONY Equity
Master, MONY Custom Equity Master and MONY Custom Estate Master), Variable
Universal Life, and Survivorship Variable Universal Life. These policies are
issued by MONY, which is a wholly-owned subsidiary of MONY Life Insurance
Company ("MONY"). For presentation purposes, the information related only to
the Variable Universal Life Insurance policies (MONY Variable Universal Life)
is presented here.
There are thirty-five MONY Variable Universal Life subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of
the MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Alger American Fund, Invesco Variable Investment Funds, Lord
Abbett Series Fund, MFS Variable Insurance Trust, PIMCO Variable Insurance
Trust, PBHG Insurance Series Funds, The Universal Institutional Funds, or Janus
Aspen Series (collectively, the "Funds"). The funds are registered under the
1940 Act as open end, diversified, management investment companies. The Fund
and Enterprise are affiliated with MONY.
A full presentation of the related financial statements and footnotes of the
Funds are contained on pages hereinafter and should be read in conjunction with
these financial statements.
2. Significant Accounting Policies
The preparation of financial statements in accordance with accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
Investment:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio, as
reported by such portfolio. Net asset value is based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the money market portfolios, the net asset value is based on the
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income is recorded
on ex-dividend date. Dividend income includes distributions of net investment
income and net realized gains received from the respective portfolios of the
Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based on
current tax law, to incur any income tax burden upon the earnings or realized
capital gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for federal
income tax purposes.
F-22
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
3. Related Party Transactions
MONY is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for the MONY Variable Universal
Life Subaccounts for the six months ended June 30, 2002 aggregated $207.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.65% of average daily net assets of
each of the MONY Variable Universal Life subaccounts. As investment adviser to
the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the period ended June
30, 2002, MONY received $95 in aggregate from certain Funds in connection with
MONY Variable Universal Life subaccounts.
4. Investment Transactions:
Cost of shares acquired and the proceeds from redemption of shares by each
subaccount during the six months ended June 30, 2002 were as follows:
Proceeds
Cost of Shares from Shares
MONY Varable Universal Life Acquired Redeemed
--------------------------- -------------- -----------
The Alger American Fund
Balanced Portfolio.................... $ 6,481 $ 241
Mid Cap Growth Portfolio.............. 35,423 956
Enterprise Accumulation Trust
Equity Income Portfolio............... 21,581 1,966
Growth and Income Portfolio........... 45,656 2,072
Growth Portfolio...................... 70,289 3,822
Globally Socially Responsive Portfolio 16,562 1,938
Managed Portfolio..................... 6,301 357
Multi-Cap Growth Portfolio............ 22,806 2,029
Small Company Growth Portfolio........ 47,326 1,065
Small Company Value Portfolio......... 38,311 246
Total Return Bond Portfolio........... 20,274 375
INVESCO Variable Insurance Funds
Financial Services Portfolio.......... 4,593 145
Health Services Portfolio............. 5,987 171
Telecommunications Portfolio.......... 13,554 1,766
F-23
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
Proceeds
Cost of Shares from Shares
MONY Varable Universal Life Acquired Redeemed
--------------------------- -------------- -----------
Janus Aspen Series Fund
Capital Appreciation Portfolio......... $ 11,805 $ 222
Flexible Income Portfolio.............. 14,582 1,264
International Growth Portfolio......... 49,769 683
Lord Abbett Series Funds
Bond Debenture Portfolio............... 11,619 229
Growth & Income Portfolio.............. 30,851 264
Mid Cap Value Portfolio................ 6,688 146
MFS Variable Insurance Trust
Mid Cap Gowth Portfolio................ 23,062 2,177
New Discovery Portfolio................ 21,273 268
Total Return Portfolio................. 17,573 433
Utilities Portfolio.................... 4,806 90
MONY Series Funds
Government Securities Portfolio........ 53,225 1,508
Long Term Bond Portfolio............... 25,256 1,393
Money Market Portfolio................. 133,010 14,159
The Universal Institutional Funds, Inc.
Emerging Equities Portfolio............ 17,597 217
Global Value Equity.................... 892 84
U.S. Real Estate....................... 16,235 162
PBHG Insurance Series Funds
Mid Cap Value Portfolio................ 42,779 236
Select Value Portfolio................. 6,475 138
PIMCO Variable Insurance Trust
Global Bond............................ 14,532 257
Real Return Portfolio.................. 22,663 484
StockPlus Growth & Income.............. 97,247 637
F-24
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
MONY Survivorship Variable Universal Life
----------------------------------------------------------------
Alger American Fund Enterprise Accumulation Trust
-------------------- ------------------------------------------
Globally Small
Growth & Socially Multi-Cap Company
Balanced Mid Cap Income Responsive Growth Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ----------
ASSETS
Shares held in respective Funds........................ 125 526 1,549 758 1,033 3,613
====== ====== ====== ====== ====== =======
Investments at cost.................................... $1,582 $8,337 $7,377 $7,376 $7,377 $15,709
====== ====== ====== ====== ====== =======
Investments in respective Funds, at net asset value.... $1,477 $7,799 $7,062 $7,173 $6,923 $15,083
Amount due from MONY................................... 0 7 0 0 0 15
Amount due from respective Funds....................... 0 0 0 0 0 0
------ ------ ------ ------ ------ -------
Total assets.................................... 1,477 7,806 7,062 7,173 6,923 15,098
------ ------ ------ ------ ------ -------
LIABILITIES
Amount due to MONY..................................... 1 1 1 1 1 2
Amount due to respective Funds......................... 0 7 0 0 0 15
------ ------ ------ ------ ------ -------
Total liabilities............................... 1 8 1 1 1 17
------ ------ ------ ------ ------ -------
Net assets............................................. $1,476 $7,798 $7,061 $7,172 $6,922 $15,081
====== ====== ====== ====== ====== =======
Net assets consist of:
Contractholders' net payments........................ $1,559 $8,340 $7,379 $7,379 $7,379 $15,717
Undistributed net investment income (loss)........... 24 (1) (1) (1) (1) (2)
Accumulated net realized loss on investments......... (2) (3) (2) (3) (2) (8)
Net unrealized depreciation of investments........... (105) (538) (315) (203) (454) (626)
------ ------ ------ ------ ------ -------
Net assets............................................. $1,476 $7,798 $7,061 $7,172 $6,922 $15,081
====== ====== ====== ====== ====== =======
Number of units outstanding*........................... 156 875 782 784 782 1,731
------ ------ ------ ------ ------ -------
Net asset value per unit outstanding*.................. $ 9.46 $ 8.91 $ 9.03 $ 9.15 $ 8.85 $ 8.71
====== ====== ====== ====== ====== =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-25
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Survivorship Variable Universal Life
-------------------------------------------------------------------------
Enterprise
Accumulation INVESCO Lord Abbett
Trust VIF Janus Aspen Series Fund Series Funds
------------ ---------- ------------------------------------ ------------
Small
Company Financial Capital Flexible International Growth &
Value Services Appreciation Income Growth Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------ ---------- ------------ ---------- ------------- ------------
ASSETS
Shares held in respective Funds................... 37 601 382 66 143 135
===== ====== ====== ====== ====== ======
Investments at cost............................... $ 781 $7,380 $7,529 $ 790 $3,107 $3,104
===== ====== ====== ====== ====== ======
Investments in respective Funds, at net asset
value........................................... $ 755 $7,181 $7,286 $ 803 $2,908 $2,885
Amount due from MONY.............................. 0 1 0 0 0 4
Amount due from respective Funds.................. 0 0 0 0 0 0
----- ------ ------ ------ ------ ------
Total assets............................... 755 7,182 7,286 803 2,908 2,889
===== ====== ====== ====== ====== ======
LIABILITIES
Amount due to MONY................................ 1 1 1 1 1 2
Amount due to respective Funds.................... 0 1 0 0 0 4
----- ------ ------ ------ ------ ------
Total liabilities.......................... 1 2 1 1 1 6
----- ------ ------ ------ ------ ------
Net assets........................................ $ 754 $7,180 $7,285 $ 802 $2,907 $2,883
===== ====== ====== ====== ====== ======
Net assets consist of:
Contractholders' net payments................... $ 781 $7,382 $7,379 $ 780 $3,101 $3,108
Undistributed net investment income (loss)...... (1) (1) 149 9 10 (2)
Accumulated net realized loss on investments.... 0 (2) 0 0 (5) (4)
Net unrealized appreciation (depreciation) of
investments.................................... (26) (199) (243) 13 (199) (219)
----- ------ ------ ------ ------ ------
Net assets........................................ $ 754 $7,180 $7,285 $ 802 $2,907 $2,883
===== ====== ====== ====== ====== ======
Number of units outstanding*...................... 78 761 739 78 310 315
----- ------ ------ ------ ------ ------
Net asset value per unit outstanding*............. $9.66 $ 9.44 $ 9.86 $10.28 $ 9.39 $ 9.16
===== ====== ====== ====== ====== ======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-26
MONY Survivorship Variable Universal Life
- -----------------------------------------------------------
MFS Variable MONY The Universal
Insurance Trust Series Fund Institutional Funds, Inc.
- -------------------- ----------- -------------------------
New Total Government Emerging U.S. Real
Discovery Return Securities Equities Estate
Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ----------- ---------- ----------
73 407 189 1,162 74
===== ====== ====== ====== ======
$ 967 $7,374 $2,129 $8,341 $ 969
===== ====== ====== ====== ======
$ 899 $7,221 $2,148 $7,900 $ 981
0 0 0 4 0
0 0 0 0 0
----- ------ ------ ------ ------
899 7,221 2,148 7,904 981
===== ====== ====== ====== ======
0 1 1 1 0
0 0 0 4 0
----- ------ ------ ------ ------
0 1 1 5 0
----- ------ ------ ------ ------
$ 899 $7,220 $2,147 $7,899 $ 981
===== ====== ====== ====== ======
$ 969 $7,375 $2,129 $8,343 $ 969
0 (1) (1) (1) 0
(2) (1) 0 (2) 0
(68) (153) 19 (441) 12
----- ------ ------ ------ ------
$ 899 $7,220 $2,147 $7,899 $ 981
===== ====== ====== ====== ======
97 752 213 864 97
----- ------ ------ ------ ------
$9.29 $ 9.61 $10.09 $ 9.15 $10.13
===== ====== ====== ====== ======
- ----------
* Units outstanding have been rounded for presentation purposes.
F-27
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Survivorship Variable Universal Life
----------------------------------------------------
PBHG Insurance
Series Funds PIMCO Variable Insurance Trust
-------------- -------------------------------------
Mid Cap Global StockPlus
Value Bond Real Return Growth & Income
Subaccount Subaccount Subaccount Subaccount Total
-------------- ---------- ----------- --------------- --------
ASSETS
Shares held in respective Funds................... 165 93 222 613
====== ====== ====== ======
Investments at cost............................... $2,128 $ 968 $2,389 $5,390 $101,104
====== ====== ====== ====== ========
Investments in respective Funds, at net asset
value........................................... $1,990 $1,011 $2,463 $4,970 $ 96,918
Amount due from MONY.............................. 0 0 0 37 68
Amount due from respective Funds.................. 0 0 0 0 0
------ ------ ------ ------ --------
Total assets............................... 1,990 1,011 2,463 5,007 96,986
------ ------ ------ ------ --------
LIABILITIES
Amount due to MONY................................ 0 0 2 2 21
Amount due to respective Funds.................... 0 0 0 37 68
------ ------ ------ ------ --------
Total liabilities.......................... 0 0 2 39 89
------ ------ ------ ------ --------
Net assets........................................ $1,990 $1,011 $2,461 $4,968 $ 96,897
====== ====== ====== ====== ========
Net assets consist of:
Contractholders' net payments................... $2,132 $ 965 $2,336 $5,401 $100,903
Undistributed net investment income (loss)...... (1) 2 49 (2) 227
Accumulated net realized gain (loss) on
investments.................................... (2) 1 2 (11) (47)
Net unrealized appreciation (depreciation) of
investments.................................... (138) 43 74 (420) (4,186)
------ ------ ------ ------ --------
Net assets........................................ $1,990 $1,011 $2,461 $4,968 $ 96,897
====== ====== ====== ====== ========
Number of units outstanding*...................... 213 97 234 564
------ ------ ------ ------
Net asset value per unit outstanding*............. $ 9.35 $10.46 $10.52 $ 8.81
====== ====== ====== ======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-28
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F-29
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the six months ended June 30, 2002 (unaudited)
Survivorship Variable Universal Life
----------------------------------------------------------------
Alger American Fund Enterprise Accumulation Trust
-------------------- ------------------------------------------
Globally Small
Growth & Socially Multi-Cap Company
Balanced Mid Cap Income Responsive Growth Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ----------
Dividend income................................... $ 25 $ 0 $ 0 $ 0 $ 0 $ 0
Distribution from capital gains................... 0 0 0 0 0 0
Mortality and expense risk charges................ (1) (1) (1) (1) (1) (2)
----- ----- ----- ----- ----- -----
Net investment income (loss)...................... 24 (1) (1) (1) (1) (2)
----- ----- ----- ----- ----- -----
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments......... (2) (3) (2) (3) (2) (8)
Net change in unrealized appreciation
(depreciation) of investments.................. (105) (538) (315) (203) (454) (626)
----- ----- ----- ----- ----- -----
Net realized and unrealized gain (loss) on
investments..................................... (107) (541) (317) (206) (456) (634)
----- ----- ----- ----- ----- -----
Net increase (decrease) in net assets resulting
from operations................................. $ (83) $(542) $(318) $(207) $(457) $(636)
===== ===== ===== ===== ===== =====
See notes to financial statements.
F-30
MONY Survivorship Variable Universal Life
- -----------------------------------------------------------------------------------------------------
Enterprise
Accumulation INVESCO Lord Abbett
Trust VIF Janus Aspen Series Fund Series Fund MFS Variable Insurance Trust
- ------------ ---------- ------------------------------------ ----------- ---------------------------
Small
Company Financial Capital Flexible International Growth & New Total
Value Services Appreciation Income Growth Income Discovery Return
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------ ---------- ------------ ---------- ------------- ----------- ---------- ----------
$ 0 $ 0 $ 150 $10 $ 11 $ 0 $ 0 $ 0
0 0 0 0 0 0 0 0
(1) (1) (1) (1) (1) (2) 0 (1)
---- ----- ----- --- ----- ----- ---- -----
(1) (1) 149 9 10 (2) 0 (1)
---- ----- ----- --- ----- ----- ---- -----
0 (2) 0 0 (5) (4) (2) (1)
(26) (199) (243) 13 (199) (219) (68) (153)
---- ----- ----- --- ----- ----- ---- -----
(26) (201) (243) 13 (204) (223) (70) (154)
---- ----- ----- --- ----- ----- ---- -----
$(27) $(202) $ (94) $22 $(194) $(225) $(70) $(155)
==== ===== ===== === ===== ===== ==== =====
F-31
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the six months ended June 30, 2002 (unaudited)
MONY Survivorship Variable Universal Life
-----------------------------------------------------------------------------------
MONY Series Funds The Universal Institutional Funds, Inc. PGHG Insurance Series Fund
----------------- --------------------------------------- --------------------------
Government Emerging U.S. Real Mid Cap
Securities Equities Estate Value
Subaccount Subaccount Subaccount Subaccount
Dividend Income........................... $ 0 $ 0 $ 0 $ 0
Distribution from capital gains........... 0 0 0 0
Mortality and expense risk charges........ (1) (1) 0 (1)
--- ----- --- -----
Net investment income (loss).............. (1) (1) 0 (1)
--- ----- --- -----
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments... 0 (2) 0 (2)
Net change in unrealized appreciation
(depreciation) of investments........... 19 (441) 12 (138)
--- ----- --- -----
Net realized and unrealized gain (loss)
on investments.......................... 19 (443) 12 (140)
--- ----- --- -----
Net increase (decrease) in net assets
resulting from operations............... $18 $(444) $12 $(141)
=== ===== === =====
See notes to financial statements.
F-32
MONY Survivorship Variable Universal Life
- ----------------------------------------------
PIMCO Variable Insurance Trust
- ----------------------------------------------
Global StockPlus
Bond Real Return Growth & Income
Subaccount Subaccount Subaccount Total
- ---------- ----------- --------------- -------
$ 2 $ 51 $ -- $ 249
0 0 0 0
0 (2) (2) (22)
--- ---- ----- -------
2 49 (2) 227
--- ---- ----- -------
1 2 (11) (47)
43 74 (420) (4,186)
--- ---- ----- -------
44 76 (431) (4,233)
--- ---- ----- -------
$46 $125 $(433) $(4,006)
=== ==== ===== =======
F-33
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
June 30, 2002 (unaudited)
MONY Survivorship Variable Universal Life
----------------------------------------------------------------------------------------------
Alger American Fund Enterprise Accumulation Trust
----------------------------- ---------------------------------------------------------------
Growth & Globally Multi-Cap Small Company
Balanced Mid Cap Income Socially Responsive Growth Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
--------------- -------------- -------------- ------------------- -------------- --------------
For the period For the period For the period For the period For the period For the period
April 3, 2002** May 2, 2002** May 2, 2002** May 2, 2002** May 2, 2002** May 2, 2002**
through through through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
From operations:
Net investment income (loss). $ 24 $ (1) $ (1) $ (1) $ (1) $ (2)
Net realized gain (loss) on
investments................ (2) (3) (2) (3) (2) (8)
Net change in unrealized
appreciation
(depreciation) of
investments................ (105) (538) (315) (203) (454) (626)
------ ------ ------ ------ ------ -------
Net increase (decrease) in
net assets resulting from
operations................... (83) (542) (318) (207) (457) (636)
------ ------ ------ ------ ------ -------
From unit transactions:
Net proceeds from the
issuance of units.......... 1,618 8,484 7,507 7,507 7,507 15,985
Net asset value of units
redeemed or used to meet
contract obligations....... (59) (144) (128) (128) (128) (268)
------ ------ ------ ------ ------ -------
Net increase from unit
transactions................. 1,559 8,340 7,379 7,379 7,379 15,717
------ ------ ------ ------ ------ -------
Net increase in net assets.... 1,476 7,798 7,061 7,172 6,922 15,081
Net assets beginning of period 0 0 0 0 0 0
------ ------ ------ ------ ------ -------
Net assets end of period*..... $1,476 $7,798 $7,061 $7,172 $6,922 $15,081
====== ====== ====== ====== ====== =======
Unit transactions:
Units outstanding beginning
of period.................... 0 0 0 0 0 0
Units issued during the period 162 892 796 798 796 1,762
Units redeemed during the
period....................... (6) (17) (14) (14) (14) (31)
------ ------ ------ ------ ------ -------
Units outstanding end of
period....................... 156 875 782 784 782 1,731
====== ====== ====== ====== ====== =======
- ----------
* Includes undistributed net
investment income (loss)
of: $ 24 $ (1) $ (1) $ (1) $ (1) $ (2)
====== ====== ====== ====== ====== =======
** Commencement of operations
See notes to financial statements.
F-34
MONY Survivorship Variable Universal Life
- -------------------------------------------------------------------------------------------
Enterprise
Accumulation Lord Abbett
Trust INVESCO VIF Janus Aspen Series Fund Series Fund
- --------------- -------------- -------------------------------------------- ---------------
Small Company Financial Capital Flexible International Growth &
Value Services Appreciation Income Growth Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- --------------- -------------- -------------- --------------- -------------- ---------------
For the period For the period For the period For the period For the period For the period
April 3, 2002** May 2, 2002** May 2, 2002** April 3, 2002** May 29, 2002** April 3, 2002**
through through through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
- --------------- -------------- -------------- --------------- -------------- ---------------
$ (1) $ (1) $ 149 $ 9 $ 10 $ (2)
0 (2) 0 0 (5) (4)
(26) (199) (243) 13 (199) (219)
---- ------ ------ ---- ------ ------
(27) (202) (94) 22 (194) (225)
---- ------ ------ ---- ------ ------
810 7,507 7,507 809 3,150 3,189
(29) (125) (128) (29) (49) (81)
---- ------ ------ ---- ------ ------
781 7,382 7,379 780 3,101 3,108
---- ------ ------ ---- ------ ------
754 7,180 7,285 802 2,907 2,883
0 0 0 0 0 0
---- ------ ------ ---- ------ ------
$754 $7,180 $7,285 $802 $2,907 $2,883
==== ====== ====== ==== ====== ======
0 0 0 0 0 0
81 774 752 81 315 324
(3) (13) (13) (3) (5) (9)
---- ------ ------ ---- ------ ------
78 761 739 78 310 3315
==== ====== ====== ==== ====== ======
$ (1) $ (1) $ 149 $ 9 $ 10 $ (2)
==== ====== ====== ==== ====== ======
F-35
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
June 30, 2002 (unaudited)
MONY Survivorship Variable Universal Life
-------------------------------------------------------------------------------
MONY Series The Universal
MFS Variable Insurance Trust Fund Institutional Funds, Inc.
---------------------------- -------------- ----------------------------------
Government
New Discovery Total Return Securities Emerging Equities U.S. Real Estate
Subaccount Subaccount Subaccount Subaccount Subaccount
-------------- -------------- -------------- ------------------ ----------------
For the period For the period For the period For the period For the period
May 29, 2002** May 2, 2002** May 29, 2002** February 7, 2002** May 29, 2002**
through through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
-------------- -------------- -------------- ------------------ ----------------
From operations:
Net investment income (loss).............. $ 0 $ (1) $ (1) $ (1) $ 0
Net realized gain (loss) on investments... (2) (1) 0 (2) 0
Net change in unrealized appreciation
(depreciation) of investments........... (68) (153) 19 (441) 12
---- ------ ------ ------ ----
Net increase (decrease) in net assets
resulting from operations................. (70) (155) 18 (444) 12
---- ------ ------ ------ ----
From unit transactions:
Net proceeds from the issuance of units... 984 7,508 2,166 8,487 984
Net asset value of units redeemed or used
to meet contract obligations............ (15) (133) (37) (144) (15)
---- ------ ------ ------ ----
Net increase from unit transactions........ 969 7,375 2,129 8,343 969
---- ------ ------ ------ ----
Net increase in net assets................. 899 7,220 2,147 7,899 981
Net assets beginning of period............. 0 0 0 0 0
---- ------ ------ ------ ----
Net assets end of period*.................. $899 $7,220 $2,147 $7,899 $981
==== ====== ====== ====== ====
Unit transactions:
Units outstanding beginning of period...... 0 0 0 0 0
Units issued during the period............. 99 766 217 880 98
Units redeemed during the period........... (2) (14) (4) (16) (1)
---- ------ ------ ------ ----
Units outstanding end of period............ 97 752 213 864 97
==== ====== ====== ====== ====
- ----------
* Includes undistributed net investment
income (loss) of: $ 0 $ (1) $ (1) $ (1) $ 0
==== ====== ====== ====== ====
** Commencement of operations
See notes to financial statements.
F-36
MONY Survivorship Variable Universal Life
- ------------------------------------------------------------
PBHG
Insurance
Series Funds PIMCO Variable Insurance Trust
- -------------- ---------------------------------------------
StockPlus
Mid Cap Value Global Bond Real Return Growth & Income
Subaccount Subaccount Subaccount Subaccount
- -------------- -------------- --------------- ---------------
For the period For the period For the period For the period
May 29, 2002** May 2, 2002** April 3, 2002** April 3, 2002**
through through through through
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 Total
- -------------- -------------- --------------- --------------- --------
$ (1) $ 2 $ 49 $ (2) $ 227
(2) 1 2 (11) (47)
(138) 43 74 (420) (4,186)
------ ------ ------ ------ --------
(141) 46 125 (433) (4,006)
------ ------ ------ ------ --------
2,166 983 2,427 5,497 102,781
(34) (18) (91) (96) (1,878)
------ ------ ------ ------ --------
2,132 965 2,336 5,401 100,903
------ ------ ------ ------ --------
1,990 1,011 2,461 4,968 96,897
0 0 0 0 0
------ ------ ------ ------ --------
$1,990 $1,011 $2,461 $4,968 $ 96,897
====== ====== ====== ====== ========
0 0 0 0
217 99 243 575
(4) (2) (9) (11)
------ ------ ------ ------
213 97 234 564
====== ====== ====== ======
$ (1) $ 2 $ 49 $ (2) $ 227
====== ====== ====== ====== ========
F-37
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. Organization and Business
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company of
America ("MONY"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist), Variable Universal Life (MONY Equity
Master, MONY Custom Equity Master and MONY Custom Estate Master), Variable
Universal Life, and Survivorship Variable Universal Life. These policies are
issued by MONY, which is a wholly-owned subsidiary of MONY Life Insurance
Company ("MONY"). For presentation purposes, the information related only to
the Variable Universal Life Insurance policies (MONYSurvivorship Variable
Universal Life) is presented here.
There are thirty-five MONY Survivorship Variable Universal subaccounts
within the Variable Account, each of which invests only in a corresponding
portfolio of the MONY Series Fund, Inc. (the "Fund"), the Enterprise
Accumulation Trust ("Enterprise"), Alger American Fund, Invesco Variable
Investment Funds, Lord Abbett Series Fund, MFS Variable Insurance Trust, PIMCO
Variable Insurance Trust, PBHG Insurance Series Funds, The Universal
Institutional Funds, or Janus Aspen Series (collectively, the "Funds"). The
funds are registered under the 1940 Act as open end, diversified, management
investment companies. The Fund and Enterprise are affiliated with MONY.
A full presentation of the related financial statements and footnotes of the
Funds are contained on pages hereinafter and should be read in conjunction with
these financial statements.
2. Significant Accounting Policies
The preparation of financial statements in accordance with accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
Investment:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio, as
reported by such portfolio. Net asset value is based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the money market portfolios, the net asset value is based on the
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income is recorded
on ex-dividend date. Dividend income includes distributions of net investment
income and net realized gains received from the respective portfolios of the
Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based on
current tax law, to incur any income tax burden upon the earnings or realized
capital gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for federal
income tax purposes.
3. Related Party Transactions
MONY is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
F-38
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for the MONY Survivorship Variable
Universal Life Subaccounts for the six months ended June 30, 2002 aggregated $0.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.65% of average daily net assets of
each of the MONY Survivorship Variable Universal Life subaccounts. As
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the period ended June
30, 2002, MONY received $6 in aggregate from certain Funds in connection with
MONY Custom Estate Master subaccounts.
4. Investment Transactions:
Cost of shares acquired and the proceeds from redemption of shares by each
subaccount during the six months ended June 30, 2002 were as follows:
Proceeds
Cost of Shares from Shares
MONY Survivorship Variable Universal Life Acquired Redeemed
- ----------------------------------------- -------------- -----------
The Alger American Fund
Balanced Portfolio...................... $ 1,618 $ 60
Mid Cap Growth Portfolio................ 8,484 145
Enterprise Accumulation Trust
Growth and Income Portfolio............. 7,507 129
Globally Socially Responsive Portfolio.. 7,507 129
Multi-Cap Growth Portfolio.............. 7,507 129
Small Company Growth Portfolio.......... 15,985 270
Small Company Value Portfolio........... 809 30
INVESCO Variable Insurance Funds
Financial Services Portfolio............ 7,507 129
Janus Aspen Series Fund
Capital Appreciation Portfolio.......... 7,507 129
Flexible Income Portfolio............... 809 30
International Growth Portfolio.......... 3,150 50
Lord Abbett Series Fund
Growth & Income Portfolio............... 3,189 83
MFS Variable Insurance Trust
New Discovery Portfolio................. 984 16
Total Return Portfolio.................. 7,507 133
F-39
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
Proceeds
Cost of Shares from Shares
MONY Survivorship Variable Universal Life Acquired Redeemed
- ----------------------------------------- -------------- -----------
MONY Series Funds
Government Securities Portfolio................... $ 2,166 $ 38
The Universal Institutional Funds, Inc.
Emerging Equities Portfolio....................... 8,488 145
U.S. Real Estate.................................. 984 16
PBHG Insurance Series Fund
Mid Cap Value Portfolio........................... 2,166 34
PIMCO Variable Insurance Trust
Global Bond....................................... 984 19
Real Return Portfolio............................. 2,427 93
StockPlus Growth & Income......................... 5,496 98
F-40
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
MONY Custom Equity Master
-----------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
--------------------------------------------- -------------------------------
Small
Intermediate Long Term Government Money Company
Term Bond Bond Securities Market Equity Value Managed
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ---------- ---------- ---------- ----------
ASSETS
Shares held in respective
Funds........................ 10,795 10,175 14,457 963,057 44,121 18,329 17,605
======== ======== ======== ======== ========= ======== ========
Investments at cost........... $120,044 $135,160 $164,590 $936,057 $ 828,032 $378,168 $367,401
======== ======== ======== ======== ========= ======== ========
Investments in respective
Funds, at net asset value.... $120,639 $133,375 $164,735 $936,057 $ 596,211 $370,054 $289,896
Amount due from MONY.......... 3 153 14 219 250 205 629
Amount due from respective
Funds........................ 147 73 94 559 374 493 253
-------- -------- -------- -------- --------- -------- --------
Total assets............. 120,789 133,601 164,843 936,835 596,835 370,752 290,778
-------- -------- -------- -------- --------- -------- --------
LIABILITIES
Amount due to MONY............ 321 257 311 1,841 1,178 1,012 683
Amount due to respective Funds 3 153 14 219 374 205 629
-------- -------- -------- -------- --------- -------- --------
Total liabilities........ 324 410 325 2,060 1,552 1,217 1,312
-------- -------- -------- -------- --------- -------- --------
Net assets.................... $120,465 $133,191 $164,518 $934,775 $ 595,283 $369,535 $289,466
======== ======== ======== ======== ========= ======== ========
Net assets consist of:
Contractholders' net payments $114,178 $128,146 $159,517 $911,601 $ 858,938 $354,461 $360,544
Undistributed net investment
income..................... 4,963 6,117 3,904 23,174 101,859 46,316 22,238
Accumulated net realized
gain (loss) on investments. 729 713 952 0 (133,693) (23,128) (15,811)
Net unrealized appreciation
(depreciation) of
investments................ 595 (1,785) 145 0 (231,821) (8,114) (77,505)
-------- -------- -------- -------- --------- -------- --------
Net assets.................... $120,465 $133,191 $164,518 $934,775 $ 595,283 $369,535 $289,466
======== ======== ======== ======== ========= ======== ========
Number of units outstanding*.. 10,288 11,153 13,834 86,918 111,627 32,470 37,715
-------- -------- -------- -------- --------- -------- --------
Net asset value per unit
outstanding*................. $ 11.71 $ 11.94 $ 11.89 $ 10.75 $ 5.33 $ 11.38 $ 7.68
======== ======== ======== ======== ========= ======== ========
- ----------
*Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-41
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Custom Equity Master
-----------------------------------------------------------------------------------
Enterprise Accumulation Trust
-----------------------------------------------------------------------------------
International High Yield Growth and Small Company Equity Capital
Growth Bond Growth Income Growth Income Appreciation
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------- ---------- ---------- ---------- ------------- ---------- ------------
ASSETS
Shares held in respective
Funds........................ 27,336 33,297 144,886 112,292 45,593 23,405 54,964
======== ======== ======== ======== ======== ======== ========
Investments at cost........... $127,211 $145,200 $747,706 $609,958 $347,540 $120,011 $324,038
======== ======== ======== ======== ======== ======== ========
Investments in respective
Funds, at net asset value.... $119,081 $135,385 $650,112 $512,864 $307,349 $113,215 $313,211
Amount due from MONY.......... 3 15 149 24 578 0 232
Amount due from respective
Funds........................ 42 83 414 216 177 77 102
-------- -------- -------- -------- -------- -------- --------
Total assets............. 119,126 135,483 650,675 513,104 308,104 113,292 313,545
-------- -------- -------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY............ 209 275 1,366 977 643 237 551
Amount due to respective Funds 3 15 149 24 578 0 232
-------- -------- -------- -------- -------- -------- --------
Total liabilities........ 212 290 1,515 1,001 1,221 237 783
-------- -------- -------- -------- -------- -------- --------
Net assets.................... $118,914 $135,193 $649,160 $512,103 $306,883 $113,055 $312,762
======== ======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments $136,980 $137,772 $776,355 $631,430 $352,625 $121,735 $351,220
Undistributed net
investment income (loss)... 10,892 8,619 (8) 1,216 7,313 276 2,947
Accumulated net realized
gain (loss) on investments. (20,828) (1,383) (29,593) (23,449) (12,864) (2,160) (30,578)
Net unrealized depreciation
of investments............. (8,130) (9,815) (97,594) (97,094) (40,191) (6,796) (10,827)
-------- -------- -------- -------- -------- -------- --------
Net assets.................... $118,914 $135,193 $649,160 $512,103 $306,883 $113,055 $312,762
======== ======== ======== ======== ======== ======== ========
Number of units outstanding*.. 18,197 13,343 89,353 68,862 36,946 12,718 40,755
-------- -------- -------- -------- -------- -------- --------
Net asset value per unit
outstanding*................. $ 6.53 $ 10.13 $ 7.27 $ 7.44 $ 8.31 $ 8.89 $ 7.67
======== ======== ======== ======== ======== ======== ========
- ----------
*Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-42
MONY Custom Equity Master
- -----------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ------------------------------------------------------------------
Dreyfus
Dreyfus Socially
Multi-Cap Emerging Worldwide Mid-Cap Stock Responsible
Growth Balanced Countries Growth Growth Total Return Index Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ---------- ---------- ---------- ------------ ---------- -----------
57,520 18,135 319 731 4,092 7 28,346 4,094
======== ======= ====== ====== ======= ===== ========= ========
$476,024 $86,481 $2,986 $6,389 $29,611 $ 73 $ 842,646 $110,347
======== ======= ====== ====== ======= ===== ========= ========
$386,008 $81,548 $2,967 $5,882 $25,286 $ 72 $ 718,005 $ 90,618
211 17 1 0 14 0 192 83
235 63 4 0 4 0 480 34
-------- ------- ------ ------ ------- ----- --------- --------
386,454 81,628 2,972 5,882 25,304 72 718,677 90,735
-------- ------- ------ ------ ------- ----- --------- --------
808 180 7 9 40 0 1,540 170
211 17 1 0 14 0 192 83
-------- ------- ------ ------ ------- ----- --------- --------
1,019 197 8 9 54 0 1,732 253
-------- ------- ------ ------ ------- ----- --------- --------
$385,435 $81,431 $2,964 $5,873 $25,250 $ 72 $ 716,945 $ 90,482
======== ======= ====== ====== ======= ===== ========= ========
$535,033 $87,053 $2,969 $6,458 $29,607 $ 73 $ 874,880 $122,582
(1,889) 417 (7) (16) (58) 0 11,416 (196)
(57,693) (1,106) 21 (62) 26 0 (44,710) (12,175)
(90,016) (4,933) (19) (507) (4,325) (1) (124,641) (19,729)
-------- ------- ------ ------ ------- ----- --------- --------
$385,435 $81,431 $2,964 $5,873 $25,250 $ 72 $ 716,945 $ 90,482
======== ======= ====== ====== ======= ===== ========= ========
76,009 9,283 317 743 3,924 7 101,277 15,546
-------- ------- ------ ------ ------- ----- --------- --------
$ 5.07 $ 8.77 $ 9.36 $ 7.90 $ 6.43 $9.91 $ 7.08 $ 5.82
======== ======= ====== ====== ======= ===== ========= ========
F-43
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Custom Equity Master
--------------------------------------------------------
Fidelity Variable Insurance
Products Funds Janus Aspen Series
---------------------------------- --------------------
VIP III
VIP VIP II Growth Aggressive
Growth Contrafund Opportunities Growth Balanced
Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ------------- ---------- ----------
ASSETS
Shares held in respective
Funds........................ 15,187 19,331 5,911 23,150 13,798
========= ======== ======== ========= ========
Investments at cost........... $ 512,006 $396,298 $ 87,579 $ 519,286 $316,556
========= ======== ======== ========= ========
Investments in respective
Funds, at net asset value.... $ 410,598 $382,341 $ 76,893 $ 411,560 $298,458
Amount due from MONY.......... 44 128 3 219 26
Amount due from respective
Funds........................ 453 311 41 478 84
--------- -------- -------- --------- --------
Total assets............. 411,095 382,780 76,937 412,257 298,568
--------- -------- -------- --------- --------
LIABILITIES
Amount due to MONY............ 1,087 845 150 1,085 503
Amount due to respective Funds 44 128 3 219 26
--------- -------- -------- --------- --------
Total liabilities........ 1,131 973 153 1,304 529
--------- -------- -------- --------- --------
Net assets.................... $ 409,964 $381,807 $ 76,784 $ 410,953 $298,039
========= ======== ======== ========= ========
Net assets consist of:
Contractholders' net payments $ 564,961 $416,188 $ 93,722 $ 650,949 $315,245
Undistributed net investment
income (loss).............. 9,707 6,590 291 350 9,258
Accumulated net realized
gain (loss) on investments. (63,296) (27,014) (6,543) (132,620) (8,366)
Net unrealized appreciation
(depreciation) of
investments................ (101,408) (13,957) (10,686) (107,726) (18,098)
--------- -------- -------- --------- --------
Net assets.................... $ 409,964 $381,807 $ 76,784 $ 410,953 $298,039
========= ======== ======== ========= ========
Number of units outstanding*.. 69,458 46,063 11,224 114,779 32,915
--------- -------- -------- --------- --------
Net asset value per unit
outstanding*................. $ 5.90 $ 8.29 $ 6.84 $ 3.58 $ 9.05
========= ======== ======== ========= ========
- ----------
*Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-44
MONY Custom Equity Master
- ----------------------------------------------------------------------------------------------
The
The Alger Universal
American Institutional PIMCO Variable
Janus Aspen Series Fund Lord Abbett Series Fund Funds, Inc. Insurance Trust
- ---------------------- ---------- ---------------------- ------------- ---------------------
Capital Worldwide Mid-Cap Growth Mid-Cap US Real Global Real
Appreciation Growth Growth and Income Value Estate Bond Return
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ------------ ---------- ---------- ---------- ---------- ------------- ---------- ---------- -----------
16,972 19,795 521 33 611 211 1,146 323
======== ========= ====== ===== ====== ====== ======= ====== ===========
$370,319 $ 596,067 $8,459 $ 728 $9,745 $2,761 $12,081 $3,547 $ 9,741,105
======== ========= ====== ===== ====== ====== ======= ====== ===========
$326,683 $ 490,087 $7,736 $ 705 $9,380 $2,814 $12,516 $3,584 8,505,925
111 140 229 5 57 0 0 0 3,954
251 367 0 0 0 0 0 0 5,909
-------- --------- ------ ----- ------ ------ ------- ------ -----------
327,045 490,594 7,965 710 9,437 2,814 12,516 3,584 8,515,788
-------- --------- ------ ----- ------ ------ ------- ------ -----------
720 1,085 7 0 7 1 3 2 18,110
111 140 229 5 57 0 0 0 4,078
-------- --------- ------ ----- ------ ------ ------- ------ -----------
831 1,225 236 5 64 1 3 2 22,188
-------- --------- ------ ----- ------ ------ ------- ------ -----------
$326,214 $ 489,369 $7,729 $ 705 $9,373 $2,813 $12,513 $3,582 $ 8,493,600
======== ========= ====== ===== ====== ====== ======= ====== ===========
$414,719 $ 664,174 $8,463 $ 729 $9,714 $2,761 $12,064 $3,510 $10,211,356
3,575 3,933 (7) 0 (7) (1) 14 35 283,231
(48,444) (72,758) (4) (1) 31 0 0 0 (765,807)
(43,636) (105,980) (723) (23) (365) 53 435 37 (1,235,180)
-------- --------- ------ ----- ------ ------ ------- ------ -----------
$326,214 $ 489,369 $7,729 $ 705 $9,373 $2,813 $12,513 $3,582 $ 8,493,600
======== ========= ====== ===== ====== ====== ======= ====== ===========
53,939 88,254 846 75 976 277 1,199 349
-------- --------- ------ ----- ------ ------ ------- ------
$ 6.05 $ 5.55 $ 9.14 $9.43 $ 9.60 $10.14 $ 10.44 $10.25
======== ========= ====== ===== ====== ====== ======= ======
F-45
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the six months ended June 30, 2002 (unaudited)
MONY Custom Equity Master
--------------------------------------------
MONY Series Fund, Inc.
--------------------------------------------
Intermediate Long Term Government Money
Term Bond Bond Securities Market
Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ----------
Dividend income................................................................. $ 4,388 $ 5,408 $3,800 $ 8,477
Distribution from net realized gains............................................ 0 0 0 0
Mortality and expense risk charges.............................................. (248) (260) (301) (2,373)
------- ------- ------ -------
Net investment income (loss).................................................... 4,140 5,148 3,499 6,104
------- ------- ------ -------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments........................................ 219 285 548 0
Net change in unrealized appreciation (depreciation) of investments............ (1,021) (2,464) (600) 0
------- ------- ------ -------
Net realized and unrealized gain (loss) on investments.......................... (802) (2,179) (52) 0
------- ------- ------ -------
Net increase (decrease) in net assets resulting from operations................. $ 3,338 $ 2,969 $3,447 $ 6,104
======= ======= ====== =======
See notes to financial statements.
F-46
MONY Custom Equity Master
- -----------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- -----------------------------------------------------------------------------------------
Small Growth Small
Company International High Yield and Company
Equity Value Managed Growth Bond Growth Income Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ---------- ------------- ---------- ---------- ---------- ----------
$ 0 $ 0 $ 0 $ 0 $ 5,237 $ 0 $ 0 $ 0
0 0 0 0 0 0 0 0
(1,439) (737) (656) (240) (280) (1,426) (1,137) (695)
- --------- -------- -------- ------- ------- --------- -------- --------
(1,439) (737) (656) (240) 4,957 (1,426) (1,137) (695)
- --------- -------- -------- ------- ------- --------- -------- --------
(37,302) (10,706) (5,945) (7,694) (1,069) (9,775) (7,444) (2,245)
(126,375) 17,174 (46,480) 8,664 (8,028) (89,234) (81,562) (48,066)
- --------- -------- -------- ------- ------- --------- -------- --------
(163,677) 6,468 (52,425) 970 (9,097) (99,009) (89,006) (50,311)
- --------- -------- -------- ------- ------- --------- -------- --------
$(165,116) $ 5,731 $(53,081) $ 730 $(4,140) $(100,435) $(90,143) $(51,006)
========= ======== ======== ======= ======= ========= ======== ========
F-47
MONY
Variable Account L
STATEMENT OF OPERATIONS (unaudited) (continued)
MONY Custom Equity Master
-----------------------------------------------------------
Enterprise Accumulation Trust
-----------------------------------------------------------
Equity Capital Multi-Cap Emerging
Income Appreciation Growth Balanced Countries
Subaccount Subaccount Subaccount Subaccount Subaccount
----------- ------------ ----------- ----------- -----------
For the six For the six For the six For the six For the six
months months months months months
ended ended ended ended ended
June 30, June 30, June 30, June 30, June 30,
2002 2002 2002 2002 2002
----------- ------------ ----------- ----------- -----------
Dividend income............... $ 0 $ 0 $ 0 $ 0 $ 0
Distribution from net
realized gains............... 0 0 0 0 0
Mortality and expense risk
charges...................... (233) (662) (870) (169) (5)
------- ------- -------- ------- -----
Net investment income (loss).. (233) (662) (870) (169) (5)
------- ------- -------- ------- -----
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ (1,158) (7,143) (13,987) (382) 61
Net change in unrealized
appreciation
(depreciation) of
investments................ (3,475) 5,949 (76,221) (5,987) (171)
------- ------- -------- ------- -----
Net realized and unrealized
loss on investments.......... (4,633) (1,194) (90,208) (6,369) (110)
------- ------- -------- ------- -----
Net decrease in net assets
resulting from operations.... $(4,866) $(1,856) $(91,078) $(6,538) $(115)
======= ======= ======== ======= =====
- ----------
** Commencement of operations
See notes to financial statements.
F-48
MONY Custom Equity Master
- ------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust Fidelity Variable Insurance Products Funds
- -------------------------------------- -------------------------------------------
Dreyfus Dreyfus
Worldwide Mid-Cap Stock Socially VIP VIP II VIP III
Growth Growth Total Return Index Responsible Growth Growth Contrafund Growth Opportunities
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ----------- ----------- --------------- ----------- ------------------ ----------- ----------- --------------------
For the six For the six For the period For the six For the six For the six For the six For the six
months months June 12, 2002** months months months months months
ended ended through ended ended ended ended ended
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30,
2002 2002 2002 2002 2002 2002 2002 2002
- ----------- ----------- --------------- ----------- ------------------ ----------- ----------- --------------------
$ 0 $ 0 $ 0 $ 2,026 $ 6 $ 534 $ 2,301 $ 551
0 0 0 0 0 0 0 0
(13) (49) 0 (1,573) (203) (972) (784) (160)
----- ------- --- --------- -------- -------- ------- --------
(13) (49) 0 453 (197) (438) 1,517 391
----- ------- --- --------- -------- -------- ------- --------
36 319 0 (12,826) (3,678) (17,177) (6,156) (1,340)
(637) (5,226) (1) (95,891) (14,014) (77,497) (195) (9,631)
----- ------- --- --------- -------- -------- ------- --------
(601) (4,907) (1) (108,717) (17,692) (94,674) (6,351) (10,971)
----- ------- --- --------- -------- -------- ------- --------
$(614) $(4,956) $(1) $(108,264) $(17,889) $(95,112) $(4,834) $(10,580)
===== ======= === ========= ======== ======== ======= ========
F-49
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the six months ended June 30, 2002 (unaudited)
MONY Custom Equity Master
--------------------------------------------
Janus Aspen Series
--------------------------------------------
Aggressive Capital Worldwide
Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ------------ ----------
Dividend income............... $ 0 $ 3,409 $ 1,183 $ 1,971
Distribution from net
realized gains............... 0 0 0 0
Mortality and expense risk
charges...................... (907) (618) (704) (1,073)
-------- -------- -------- --------
Net investment income (loss).. (907) 2,791 479 898
-------- -------- -------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ (37,184) (2,005) (12,022) (18,268)
Net change in unrealized
appreciation
(depreciation) of
investments ............... (49,822) (11,100) (11,730) (51,664)
-------- -------- -------- --------
Net realized and unrealized
gain (loss) on investments... (87,006) (13,105) (23,752) (69,932)
-------- -------- -------- --------
Net increase (decrease) in
net assets resulting from
operations................... $(87,913) $(10,314) $(23,273) $(69,034)
======== ======== ======== ========
- ----------
** Commencement of operations
See notes to financial statements.
F-50
MONY Custom Equity Master
- ----------------------------------------------------------------------------------------
The Alger The Universal
American Institutional
Fund Lord Abbett Series Fund Funds, Inc. PIMCO Variable Insurance Trust
- -------------- ---------------------------- -------------- ----------------------------
Mid-Cap Growth and Mid-Cap US Global
Growth Income Value Real Estate Bond Real Return
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- -------------- -------------- -------------- -------------- -------------- --------------
For the period For the period For the period For the period For the period For the period
May 6, 2002** May 31, 2002** May 6, 2002** May 31, 2002** May 31, 2002** May 6, 2002**
through through through through through through
June 30, June 30, June 30, June 30, June 30, June 30,
2002 2002 2002 2002 2002 2002 Total
- -------------- -------------- -------------- -------------- -------------- -------------- ---------
$ 0 $ 0 $ 0 $ 0 $ 17 $38 $ 39,346
0 0 0 0 0 0 0
(7) 0 (7) (1) (3) (3) (18,808)
----- ---- ----- --- ---- --- ---------
(7) 0 (7) (1) 14 35 20,538
----- ---- ----- --- ---- --- ---------
(4) (1) 31 0 0 0 (214,012)
(723) (23) (365) 53 435 37 (785,891)
----- ---- ----- --- ---- --- ---------
(727) (24) (334) 53 435 37 (999,903)
----- ---- ----- --- ---- --- ---------
$(734) $(24) $(341) $52 $449 $72 $(979,365)
===== ==== ===== === ==== === =========
F-51
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
MONY Custom Equity Master
-------------------------------------------------------------------------
MONY Series Fund, Inc.
-------------------------------------------------------------------------
Intermediate Long Term Government
Term Bond Bond Securities
Subaccount Subaccount Subaccount
----------------------- ----------------------- -----------------------
For the six For the six For the six
months For the year months For the year months For the year
ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001
----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited)
From operations:
Net investment income........ $ 4,140 $ 836 $ 5,148 $ 976 $ 3,499 $ 409
Net realized gain (loss) on
investments................ 219 481 285 412 548 383
Net change in unrealized
appreciation
(depreciation) of
investments................ (1,021) 1,137 (2,464) 301 (600) 594
-------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets resulting from
operations................... 3,338 2,454 2,969 1,689 3,447 1,386
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 81,380 54,847 89,214 65,177 97,747 93,798
Net asset value of units
redeemed or used to meet
contract obligations....... (25,503) (12,148) (19,160) (17,053) (21,661) (16,515)
-------- -------- -------- -------- -------- --------
Net increase (decrease) from
unit transactions............ 55,877 42,699 70,054 48,124 76,086 77,283
-------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets................... 59,215 45,153 73,023 49,813 79,533 78,669
Net assets beginning of period 61,250 16,097 60,168 10,355 84,985 6,316
-------- -------- -------- -------- -------- --------
Net assets end of period*..... $120,465 $ 61,250 $133,191 $ 60,168 $164,518 $ 84,985
======== ======== ======== ======== ======== ========
Unit transactions:
Units outstanding beginning
of period.................... 5,383 1,530 5,166 942 7,316 577
Units issued during the period 7,111 4,957 7,184 5,723 7,822 8,191
Units redeemed during the
period....................... (2,206) (1,104) (1,197) (1,499) (1,304) (1,452)
-------- -------- -------- -------- -------- --------
Units outstanding end of
period....................... 10,288 5,383 11,153 5,166 13,834 7,316
======== ======== ======== ======== ======== ========
- ----------
* Includes undistributed net
investment income of: $ 4,963 $ 823 $ 6,117 $ 969 $ 3,904 $ 405
======== ======== ======== ======== ======== ========
See notes to financial statements.
F-52
MONY Custom Equity Master
- --------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
- ----------------------- -------------------------------------------------------------------------
Money Small Company
Market Equity Value Managed
Subaccount Subaccount Subaccount Subaccount
- ----------------------- ----------------------- ----------------------- -----------------------
For the six For the six For the six For the six
months For the year months For the year months For the year months For the year
ended ended ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 6,104 $ 16,021 $ (1,439) $ 89,438 $ (737) $ 42,604 $ (656) $ 18,358
0 0 (37,302) (89,824) (10,706) (10,977) (5,945) (7,992)
0 0 (126,375) (68,120) 17,174 (22,560) (46,480) (32,257)
- ---------- ---------- --------- --------- -------- -------- -------- --------
6,104 16,021 (165,116) (68,506) 5,731 9,067 (53,081) (21,891)
- ---------- ---------- --------- --------- -------- -------- -------- --------
294,675 1,828,369 185,997 614,166 157,666 237,430 82,229 226,381
(667,051) (584,681) (69,084) (125,139) (48,526) (53,014) (31,719) (40,330)
- ---------- ---------- --------- --------- -------- -------- -------- --------
(372,376) 1,243,688 116,913 489,027 109,140 184,416 50,510 186,051
- ---------- ---------- --------- --------- -------- -------- -------- --------
(366,272) 1,259,709 (48,203) 420,521 114,871 193,483 (2,571) 164,160
1,301,047 41,338 643,486 222,965 254,664 61,181 292,037 127,877
- ---------- ---------- --------- --------- -------- -------- -------- --------
$ 934,775 $1,301,047 $ 595,283 $ 643,486 $369,535 $254,664 $289,466 $292,037
========== ========== ========= ========= ======== ======== ======== ========
121,626 3,997 93,665 26,254 22,978 5,789 31,845 12,345
16,554 172,939 23,747 85,417 14,013 22,117 10,071 23,812
(51,262) (55,310) (5,785) (18,006) (4,521) (4,928) (4,201) (4,312)
- ---------- ---------- --------- --------- -------- -------- -------- --------
86,918 121,626 111,627 93,665 32,470 22,978 37,715 31,845
========== ========== ========= ========= ======== ======== ======== ========
$ 23,174 $ 17,070 $ 101,859 $ 103,298 $ 46,316 $ 47,053 $ 22,238 $ 22,894
========== ========== ========= ========= ======== ======== ======== ========
F-53
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
-------------------------------------------------------------------------
Enterprise Accumulation Trust
-------------------------------------------------------------------------
International
Growth High Yield Bond Growth
Subaccount Subaccount Subaccount
----------------------- ----------------------- -----------------------
For the six For the six For the six
months For the year months For the year months For the year
ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001
----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited)
From operations:
Net investment income (loss). $ (240) $ 8,494 $ 4,957 $ 3,504 $ (1,426) $ 832
Net realized loss on
investments................ (7,694) (12,259) (1,069) (279) (9,775) (18,278)
Net change in unrealized
appreciation
(depreciation) of
investments................ 8,664 (13,112) (8,028) (1,717) (89,234) (12,826)
-------- -------- -------- -------- --------- ---------
Net increase (decrease) in
net assets resulting from
operations................... 730 (16,877) (4,140) 1,508 (100,435) (30,272)
-------- -------- -------- -------- --------- ---------
From unit transactions:
Net proceeds from the
issuance of units.......... 38,560 86,356 78,172 76,810 223,198 515,492
Net asset value of units
redeemed or used to meet
contract obligations....... (12,986) (24,672) (18,907) (12,573) (68,033) (117,820)
-------- -------- -------- -------- --------- ---------
Net increase from unit
transactions................. 25,574 61,684 59,265 64,237 155,165 397,672
-------- -------- -------- -------- --------- ---------
Net increase in net assets.... 26,304 44,807 55,125 65,745 54,730 367,400
Net assets beginning of period 92,610 47,803 80,068 14,323 594,430 227,030
-------- -------- -------- -------- --------- ---------
Net assets end of period*..... $118,914 $ 92,610 $135,193 $ 80,068 $ 649,160 $ 594,430
======== ======== ======== ======== ========= =========
Unit transactions:
Units outstanding beginning
of period.................... 14,206 5,274 7,695 1,453 70,201 23,359
Units issued during the period 5,491 12,354 4,369 7,462 14,426 60,795
Units redeemed during the
period....................... (1,500) (3,422) 1,279 (1,220) 4,726 (13,953)
-------- -------- -------- -------- --------- ---------
Units outstanding end of
period....................... 18,197 14,206 13,343 7,695 89,353 70,201
======== ======== ======== ======== ========= =========
- ----------
* Includes undistributed net
investment income (loss)
of: $ 10,892 $ 11,132 $ 8,619 $ 3,662 $ (8) $ 1,418
======== ======== ======== ======== ========= =========
** Commencement of operations
See notes to financial statements.
F-54
MONY Custom Equity Master
- --------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- --------------------------------------------------------------------------------------------------
Small Company
Growth and Income Growth Equity Income Capital Appreciation
Subaccount Subaccount Subaccount Subaccount
- ----------------------- ----------------------- ----------------------- -----------------------
For the six For the six For the six For the six
months For the year months For the year months For the year months For the year
ended ended ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ (1,137) $ 2,339 $ (695) $ 7,842 $ (233) $ 511 $ (662) $ 715
(7,444) (15,933) (2,245) (10,901) (1,158) (1,072) (7,143) (22,752)
(81,562) (14,041) (48,066) 9,613 (3,475) (4,337) 5,949 (7,298)
-------- --------- -------- -------- -------- -------- -------- --------
(90,143) (27,635) (51,006) 6,554 (4,866) (4,898) (1,856) (29,335)
-------- --------- -------- -------- -------- -------- -------- --------
193,295 521,272 108,834 238,098 44,111 80,770 104,855 223,818
(66,821) (105,992) (37,520) (54,202) (12,815) (18,589) (47,614) (54,654)
-------- --------- -------- -------- -------- -------- -------- --------
126,474 415,280 71,314 183,896 31,296 62,181 57,241 169,164
-------- --------- -------- -------- -------- -------- -------- --------
36,331 387,645 20,308 190,450 26,430 57,283 55,385 139,829
475,772 88,127 286,575 96,125 86,625 29,342 257,377 117,548
-------- --------- -------- -------- -------- -------- -------- --------
$512,103 $ 475,772 $306,883 $286,575 $113,055 $ 86,625 $312,762 $257,377
======== ========= ======== ======== ======== ======== ======== ========
53,806 8,752 29,439 9,464 9,356 2,818 33,465 12,316
11,898 56,790 5,722 25,927 4,204 8,493 12,619 28,080
3,158 (11,736) 1,785 (5,952) (842) (1,955) (5,329) (6,931)
-------- --------- -------- -------- -------- -------- -------- --------
68,862 53,806 36,946 29,439 12,718 9,356 40,755 33,465
======== ========= ======== ======== ======== ======== ======== ========
$ 1,216 $ 2,353 $ 7,313 $ 8,008 $ 276 $ 509 $ 2,947 $ 3,609
======== ========= ======== ======== ======== ======== ======== ========
F-55
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
---------------------------------------------------------------------------
Enterprise Accumulation Trust
---------------------------------------------------------------------------
Multi-Cap Emerging
Growth Balanced Countries
Subaccount Subaccount Subaccount
----------------------- ----------------------- -------------------------
For the six For the six For the six For the period
months For the year months For the year months June 8, 2001**
ended ended ended ended ended through
June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001
----------- ------------ ----------- ------------ ----------- --------------
(unaudited) (unaudited) (unaudited)
From operations:
Net investment income (loss). $ (870) $ (907) $ (169) $ 569 $ (5) $ (2)
Net realized income (loss)
on investments............. (13,987) (41,378) (382) (612) 61 (40)
Net change in unrealized
appreciation
(depreciation) of
investments................ (76,221) 9,788 (5,987) 825 (171) 152
-------- -------- -------- -------- ------ ------
Net increase (decrease) in
net assets resulting from
operations................... (91,078) (32,497) (6,538) 782 (115) 110
-------- -------- -------- -------- ------ ------
From unit transactions:
Net proceeds from the
issuance of units.......... 156,510 343,187 40,469 76,777 1,979 1,757
Net asset value of units
redeemed or used to meet
contract obligations....... (65,396) (77,595) (13,209) (23,620) (531) (236)
-------- -------- -------- -------- ------ ------
Net increase from unit
transactions................. 91,114 265,592 27,260 53,157 1,448 1,521
-------- -------- -------- -------- ------ ------
Net increase in net assets.... 36 233,095 20,722 53,939 1,333 1,631
Net assets beginning of period 385,399 152,304 60,709 6,770 1,631 0
-------- -------- -------- -------- ------ ------
Net assets end of period*..... $385,435 $385,399 $ 81,431 $ 60,709 $2,964 $1,631
======== ======== ======== ======== ====== ======
Unit transactions:
Units outstanding beginning
of period.................... 60,270 19,707 6,380 682 169 0
Units issued during the period 24,764 52,586 3,915 8,226 217 197
Units redeemed during the
period....................... (9,025) (12,023) (1,012) (2,528) (69) (28)
-------- -------- -------- -------- ------ ------
Units outstanding end of
period....................... 76,009 60,270 9,283 6,380 317 169
======== ======== ======== ======== ====== ======
- ----------
* Includes undistributed net
investment income
(loss) of: $ (1,889) $ (1,019) $ 417 $ 586 $ (7) $ (2)
======== ======== ======== ======== ====== ======
** Commencement of operations
See notes to financial statements.
F-56
MONY Custom Equity Master
- ----------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- --------------------------------------------------------------------
Dreyfus Dreyfus
Worldwide Mid-Cap Total Stock Socially
Growth Growth Return Index Responsible Growth
Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------------------- ------------------------- --------------- ----------------------- -----------------------
For the six For the period For the six For the period For the period For the six For the six
months June 8, 2001** months June 8, 2001** June 12, 2002** months For the year months For the year
ended through ended through through ended ended ended ended
June 30, December 31, June 30, December 31, June 30, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2002 2001 2002 2001
- ----------- -------------- ----------- -------------- --------------- ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
$ (13) $ (3) $ (49) $ (9) $ 0 $ 453 $ 7,130 $ (197) $ (140)
36 (98) 319 (293) 0 (12,826) (30,637) (3,678) (8,248)
(637) 130 (5,226) 901 (1) (95,891) (15,177) (14,014) (3,277)
------- ------ ------- ------- --- --------- --------- -------- --------
(614) 29 (4,956) 599 (1) (108,264) (38,684) (17,889) (11,665)
------- ------ ------- ------- --- --------- --------- -------- --------
4,231 4,723 22,040 12,526 77 253,653 587,939 40,285 91,828
(1,814) (682) (3,601) (1,358) (4) (73,909) (123,130) (14,607) (18,864)
------- ------ ------- ------- --- --------- --------- -------- --------
2,417 4,041 18,439 11,168 73 179,744 464,809 25,678 72,964
------- ------ ------- ------- --- --------- --------- -------- --------
1,803 4,070 13,483 11,767 72 71,480 426,125 7,789 61,299
4,070 0 11,767 0 0 645,465 219,340 82,693 21,394
------- ------ ------- ------- --- --------- --------- -------- --------
$ 5,873 $4,070 $25,250 $11,767 $72 $ 716,945 $ 645,465 $ 90,482 $ 82,693
======= ====== ======= ======= === ========= ========= ======== ========
463 0 1,466 0 0 78,584 23,366 11,748 2,344
436 542 2,943 1,643 8 32,321 69,968 4,823 11,940
(156) (79) (485) (177) (1) (9,628) (14,750) (1,025) (2,536)
------- ------ ------- ------- --- --------- --------- -------- --------
743 463 3,924 1,466 7 101,277 78,584 15,546 11,748
======= ====== ======= ======= === ========= ========= ======== ========
$ (16) $ (3) $ (58) $ (9) $ 0 $ 11,416 $ 10,963 $ (196) $ 1
======= ====== ======= ======= === ========= ========= ======== ========
F-57
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
------------------------------------------------
Fidelity Variable Insurance Products Funds
------------------------------------------------
VIP Growth VIP II Contrafund
Subaccount Subaccount
----------------------- -----------------------
For the six For the six
months For the year months For the year
ended ended ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
----------- ------------ ----------- ------------
(unaudited) (unaudited)
From operations:
Net investment income (loss). $ (438) $ 10,264 $ 1,517 $ 5,232
Net realized loss on
investments................ (17,177) (45,170) (6,156) (20,592)
Net change in unrealized
appreciation
(depreciation) of
investments................ (77,497) (7,814) (195) (7,442)
-------- --------- -------- --------
Net decrease in net assets
resulting from operations.... (95,112) (42,720) (4,834) (22,802)
-------- --------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 137,624 434,904 114,121 241,564
Net asset value of units
redeemed or used to meet
contract obligations....... (55,968) (102,004) (44,046) (65,363)
-------- --------- -------- --------
Net increase from unit
transactions................. 81,656 332,900 70,075 176,201
-------- --------- -------- --------
Net increase (decrease) in
net assets................... (13,456) 290,180 65,241 153,399
Net assets beginning of period 423,420 133,240 316,566 163,167
-------- --------- -------- --------
Net assets end of period...... $409,964 $ 423,420 $381,807 $316,566
======== ========= ======== ========
Unit transactions:
Units outstanding beginning
of period.................... 57,776 14,902 37,789 17,007
Units issued during the period 16,998 56,380 13,596 28,573
Units redeemed during the
period....................... (5,316) (13,506) (5,322) (7,791)
-------- --------- -------- --------
Units outstanding end of
period....................... 69,458 57,776 46,063 37,789
======== ========= ======== ========
- ----------
* Includes undistributed net
investment income (loss)
of: $ 9,707 $ 10,145 $ 6,590 $ 5,073
======== ========= ======== ========
** Commencement of operations
See notes to financial statements.
F-58
MONY Custom Equity Master
- -----------------------------------------------------------------------------------------------------
Fidelity Variable Insurance
Products Funds Janus Aspen Series
- -------------------------- -------------------------------------------------------------------------
VIP III Aggressive Capital
Growth Opportunities Growth Balanced Appreciation
Subaccount Subaccount Subaccount Subaccount
- -------------------------- ----------------------- ----------------------- -----------------------
For the six For the six For the six For the six
months For the year months For the year months For the year months For the year
ended ended ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 391 $ (77) $ (907) $ (951) $ 2,791 $ 4,996 $ 479 $ 2,383
(1,340) (4,908) (37,184) (89,137) (2,005) (5,465) (12,022) (34,995)
(9,631) 1,115 (49,822) (23,785) (11,100) (5,338) (11,730) (13,217)
-------- -------- -------- --------- -------- -------- -------- --------
(10,580) (3,870) (87,913) (113,873) (10,314) (5,807) (23,273) (45,829)
-------- -------- -------- --------- -------- -------- -------- --------
33,749 54,447 164,510 465,872 93,647 228,701 96,849 273,738
(9,749) (15,463) (66,943) (99,638) (33,943) (54,763) (48,484) (69,512)
-------- -------- -------- --------- -------- -------- -------- --------
24,000 38,984 97,567 366,234 59,704 173,938 48,365 204,226
-------- -------- -------- --------- -------- -------- -------- --------
13,420 35,114 9,654 252,361 49,390 168,131 25,092 158,397
63,364 28,250 401,299 148,938 248,649 80,518 301,122 142,725
-------- -------- -------- --------- -------- -------- -------- --------
$ 76,784 $ 63,364 $410,953 $ 401,299 $298,039 $248,649 $326,214 $301,122
======== ======== ======== ========= ======== ======== ======== ========
8,012 3,045 90,311 20,212 26,527 8,160 46,253 17,106
4,268 6,917 33,489 90,124 9,544 24,202 14,939 39,167
(1,056) (1,950) (9,021) (20,025) (3,156) (5,835) (7,253) (10,020)
-------- -------- -------- --------- -------- -------- -------- --------
11,224 8,012 114,779 90,311 32,915 26,527 53,939 46,253
======== ======== ======== ========= ======== ======== ======== ========
$ 291 $ (100) $ 350 $ 1,257 $ 9,258 $ 6,467 $ 3,575 $ 3,096
======== ======== ======== ========= ======== ======== ======== ========
F-59
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
--------------------------------------
The Alger
American
Janus Aspen Series Fund
----------------------- --------------
Mid-Cap
Worldwide Growth Growth
Subaccount Subaccount
----------------------- --------------
For the period
For the six May 06,
months For the year 2002**
ended ended through
June 30, December 31, June 30,
2002 2001 2002
----------- ------------ --------------
(unaudited) (unaudited)
From operations:
Net investment income (loss). $ 898 $ 838 $ (7)
Net realized gain (loss) on
investments................ (18,268) (50,896) (4)
Net change in unrealized
appreciation
(depreciation) of
investments................ (51,664) (28,133) (723)
-------- --------- ------
Net increase (decrease) in
net assets resulting from
operations................... (69,034) (78,191) (734)
-------- --------- ------
From unit transactions:
Net proceeds from the
issuance of units.......... 167,591 404,800 8,547
Net asset value of units
redeemed or used to meet
contract obligations....... (63,882) (102,101) (84)
-------- --------- ------
Net increase from unit
transactions................. 103,709 302,699 8,463
-------- --------- ------
Net increase in net assets.... 34,675 224,508 7,729
Net assets beginning of period 454,694 230,186 0
-------- --------- ------
Net assets end of period*..... $489,369 454,694 $7,729
======== ========= ======
Unit transactions:
Units outstanding beginning
of period.................... 71,160 27,835 0
Units issued during the period 29,950 58,551 854
Units redeemed during the
period....................... (12,856) (15,226) (8)
-------- --------- ------
Units outstanding end of
period....................... 88,254 71,160 846
======== ========= ======
----------
* Includes undistributed net
investment income of: $ 3,933 $ 3,035 $ (7)
======== ========= ======
** Commencement of operations
See notes to financial statements.
F-60
MONY Custom Equity Master
- ---------------------------------------------------------------------------------------------------
The Universal
Institutional
Lord Abbett Series Fund Funds, Inc. PIMCO Variable Insurance Trust
- ---------------------------- -------------- ----------------------------
Growth and Mid-Cap US Real
Income Value Estate Global Bond Real Return
Subaccount Subaccount Subaccount Subaccount Subaccount Total
- -------------- -------------- -------------- -------------- -------------- ------------------------
For the period For the period For the period For the period For the period
May 31, May 06, May 31, May 31, May 06, For the six
20002** 20002** 20002** 20002** 20002** months For the year
through through through through through ended ended
June 30, June 30, June 30, June 30, June 30, June 30, December 31,
2002 2002 2002 2002 2002 2002 2001
- -------------- -------------- -------------- -------------- -------------- ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
$ 0 $ (7) $ (1) $ 14 $ 35 $ 20,538 $ 222,202
(1) 31 0 0 0 (214,012) (521,460)
(23) (365) 53 435 37 (785,891) (255,895)
---- ------ ------ ------- ------ ----------- -----------
(24) (341) 52 449 72 (979,365) (555,153)
---- ------ ------ ------- ------ ----------- -----------
753 9,821 2,789 12,065 3,562 3,144,805 8,085,547
(24) (107) (28) (1) (52) (1,643,782) (1,991,711)
---- ------ ------ ------- ------ ----------- -----------
729 9,714 2,761 12,064 3,510 1,501,023 6,093,836
---- ------ ------ ------- ------ ----------- -----------
705 9,373 2,813 12,513 3,582 521,658 5,538,683
0 0 0 0 0 7,971,942 2,433,259
---- ------ ------ ------- ------ ----------- -----------
$705 $9,373 $2,813 $12,513 $3,582 $ 8,493,600 $ 7,971,942
==== ====== ====== ======= ====== =========== ===========
0 0 0 0 0
77 994 308 1,200 355
(2) (18) (31) (1) (6)
---- ------ ------ ------- ------
75 976 277 1,199 349
==== ====== ====== ======= ======
$ 0 $ (7) $ (1) $ 14 $ 35 $ 283,231 $ 262,693
==== ====== ====== ======= ====== =========== ===========
F-61
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist), Variable Universal Life (MONYEquity Master,
MONY Custom Equity Master and MONY Custom Estate Master), MONY Variable
Universal Life and MONY Survivorship Variable Universal Life. These policies
are issued by MONY. For presentation purposes, the information related only to
the Variable Universal Life Insurance policies (MONY Custom Equity Master) is
presented here.
There are thirty five MONY Custom Equity Master Subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of
the MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Dreyfus Stock Index Fund, Dreyfus Socially Responsible Growth
Fund, Inc., Fidelity Variable Insurance Products Funds, The Universal
Institutional Funds, Inc., the Alger American Fund, Lord Abbett Series Fund,
PIMCO Variable Insurance Trust, or Janus Aspen Series (collectively, the
"Funds"). Certain subaccounts of MONY Custom Equity Master commenced operations
during the year ended December 31, 2000, and the remaining subaccounts
commenced operations during the period ended June 30, 2002. The Funds are
registered under the 1940 Act as open-end, diversified, management investment
companies. The Fund and Enterprise are affiliated with MONY.
These financial statements should be read in conjunction with the financial
statements and footnotes of the Funds, which were distributed by MONY to the
policyholders.
2. Significant Accounting Policies:
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolio is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the Money Market Portfolio, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income and
distributions of net realized gains are recorded on the ex-dividend date.
Investment income includes dividends from net investment income and
distribution of net realized gains received from the respective portfolios of
the Funds. Dividends and distributions received are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based on
current tax law, to incur any income tax burden upon the earnings or realized
gains attributable to the Variable Account. Based on this expectation, no
charges are currently being deducted from the Variable Account for Federal
income tax purposes.
F-62
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
3. Related Party Transactions:
MONY is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for such purposes for all of the
MONY Custom Equity Master Subaccounts for the six months ended June 30, 2002
aggregated $418,410.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.35% of the average daily net assets of
each of the MONY Custom Equity Master subaccounts. As MONY Life Insurance
Company of America, a wholly-owned subsidiary of MONY, acts as investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain funds for
maintaining and servicing policyholders' accounts. During the period ended June
30, 2002, MONY received $2,479 in connection with MONY Custom Equity Master
subaccounts.
F-63
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. Investment Transactions:
Cost of shares acquired and the proceeds from redemption of shares by each
subaccount during the six months ended June 30, 2002 were as follows:
Cost of Shares
Acquired Proceeds
(Excludes from Shares
MONY Custom Equity Master Subaccounts Reinvestments) Redeemed
------------------------------------- -------------- -----------
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio.............. $ 81,382 $ 25,765
Long Term Bond Portfolio...................... 91,916 22,133
Government Securities Portfolio............... 17,211 23,441
Money Market Portfolio........................ 1,344,303 1,721,392
Enterprise Accumulation Trust
Equity Portfolio.............................. 175,982 60,619
Small Company Value Portfolio................. 150,067 19,025
Managed Portfolio............................. 77,107 27,090
International Growth Portfolio................ 39,953 14,633
High Yield Bond Portfolio..................... 76,573 19,432
Growth Portfolio.............................. 225,647 72,008
Growth and Income Portfolio................... 182,360 57,103
Small Company Growth Portfolio................ 102,173 31,601
Equity Income Portfolio....................... 46,880 15,832
Capital Appreciation Portfolio................ 98,420 41,523
Multi-Cap Growth Portfolio.................... 146,739 56,560
Balanced Portfolio............................ 49,196 22,114
Emerging Countries Portfolio.................. 4,154 1,285
Worldwide Growth Portfolio.................... 1,867 889
Mid-Cap Growth Portfolio...................... 24,166 5,778
Total Return.................................. 77 4
Dreyfus
Dreyfus Stock Index Fund...................... 247,375 69,314
Dreyfus Socially Responsible Growth Fund, Inc. 39,810 10,999
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 141,077 60,464
VIP II Contrafund Portfolio................... 107,093 37,855
VIP III Growth Opportunities Portfolio........ 31,769 7,941
Janus Aspen Series
Aggressive Growth Portfolio................... 153,981 57,387
Balanced Portfolio............................ 84,808 29,172
Capital Appreciation Portfolio................ 86,657 40,230
Worldwide Growth Portfolio.................... 152,553 51,964
F-64
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. Investment Transactions: (continued)
Cost of Shares Proceeds
Acquired from
(Excludes Shares
MONY Custom Equity Master Subaccounts Reinvestments) Redeemed
------------------------------------- -------------- --------
The Alger American Fund
Mid-Cap Growth Portfolio............... $10,688 $2,231
Lord Abbett Series Fund
Growth and Income Portfolio............ 738 9
Mid-Cap Value Portfolio................ 12,032 2,326
The Universal Institutional Funds, Inc.
US Real Estate Portfolio............... 2,789 30
PIMCO Variable Insurance Trust
Global Bond Portfolio.................. 12,048 4
Real Return Portfolio.................. 3,480 10
5. Financial Highlights:
For a unit outstanding through the period ended December 31, 2001:
At December 31, 2001 For the period ended December 31, 2001
---------------------- ------------------------------------
Net Investment
Unit Assets Income Expense Total
MONY Custom Equity Master Subaccounts Units Value (000's) Ratio* Ratio** Return***
- ------------------------------------- ------- ------ ------- ---------- ------- ---------
MONY Series Fund, Inc.
Intermediate Term Bond Subaccount.. 5,383 $11.38 $ 61 2.72% 0.35% 8.17%
Long Term Bond Subaccount.......... 5,166 11.65 60 3.21 0.35 5.91
Government Securities Subaccount... 7,316 11.62 85 1.53 0.35 6.22
Money Market Subaccount............ 121,626 10.70 1,301 2.97 0.35 3.48
Enterprise Accumulation Trust
Equity Subaccount.................. 93,665 6.87 643 0.36 0.35 (19.08)
Small Company Value Subaccount..... 22,978 11.08 255 0.35 0.35 4.82
Managed Subaccount................. 31,845 9.17 292 2.73 0.35 (11.49)
International Growth Subaccount.... 14,206 6.52 93 0.82 0.35 (28.04)
High Yield Bond Subaccount......... 7,695 10.40 80 8.81 0.35 5.48
Growth Subaccount.................. 70,201 8.47 594 0.56 0.35 (12.86)
Growth and Income Subaccount....... 53,806 8.84 476 1.17 0.35 (12.21)
Small Company Growth Subaccount.... 29,439 9.73 287 0.00 0.35 (4.23)
Equity Income Subaccount........... 9,356 9.26 87 1.31 0.35 (11.05)
Capital Appreciation Subaccount.... 33,465 7.69 257 0.75 0.35 (19.39)
Multi-Cap Growth Subaccount........ 60,270 6.39 385 0.00 0.35 (17.34)
Balanced Subaccount................ 6,380 9.52 61 2.10 0.35 (4.13)
Emerging Countries Subaccount (1).. 169 9.61 2 0.00(^) 0.35(^) (3.90)
Worldwide Growth Subaccount (1).... 463 8.80 4 0.00(^) 0.35(^) (12.00)
Mid-Cap Growth Subaccount (1)...... 1,466 8.03 12 0.00(^) 0.35(^) (19.70)
F-65
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
5. Financial Highlights: (continued)
At December 31, 2001 For the period ended December 31, 2001
-------------------- ------------------------------------
Net Investment
Unit Assets Income Expense Total
MONY Custom Equity Master Subaccounts Units Value (000's) Ratio* Ratio** Return***
- ------------------------------------- ------ ----- ------- ---------- ------- ---------
Dreyfus
Dreyfus Stock Index Subaccount......................... 78,584 $8.21 $645 1.28% 0.35% (12.57)%
Dreyfus Socially Responsible Growth Subaccount......... 11,748 7.04 83 0.10 0.35 (22.89)
Fidelity Variable Insurance Products Funds
VIP Growth Subaccount.................................. 57,776 7.33 423 0.00 0.35 (18.01)
VIP II Contrafund Subaccount........................... 37,789 8.38 317 0.51 0.35 (12.62)
VIP III Growth Opportunities Subaccount................ 8,012 7.91 63 0.16 0.35 (14.76)
Janus Aspen Series
Aggressive Growth Subaccount........................... 90,311 4.44 401 0.00 0.35 (39.76)
Balanced Subaccount.................................... 26,527 9.37 249 3.24 0.35 (5.07)
Capital Appreciation Subaccount........................ 46,253 6.51 301 1.43 0.35 (21.94)
Worldwide Growth Subaccount............................ 71,160 6.39 455 0.60 0.35 (22.73)
* This ratio represents the amount of dividend income, excluding distributions
from net realized gains, received by the subaccount from the underlying
fund, net of investment advisory fees assessed by the underlying fund's
investment adviser and other expenses of the underlying fund, divided by the
average net assets of the subaccount. These ratios exclude those expenses,
such as mortality and expense charges, that result in direct reductions in
the net asset value per Unit. The recognition of dividend income by the
subaccount is affected by the timing of the declaration of dividends by the
underlying fund in which the subaccounts invest.
** This ratio represents the annual contract expenses of the separate account,
consisting primarily of mortality and expense charges, for each period
indicated. The ratio includes only those expenses that result in a direct
reduction to net asset value per Unit. Charges made directly to
contractholder accounts by redemption of Units and expenses of the
respective underlying fund are excluded from this ratio.
***Represents the total return for the period indicated, including changes in
the value of the underlying fund, and reflect deductions for all items
included in the Expense Ratio. The Total Return does not include any
expenses assessed through the redemption of Units; the Total Return would
have been lower had such expenses been included in the calculation. Total
returns for periods less than one year are not annualized.
(/\)Annualized
(1)For the period June 8, 2001 through December 31, 2001.
F-66
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-67
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
MONY Custom Estate Master
---------------------------------------------
MONY Series Fund, Inc.
---------------------------------------------
Intermediate Long Term Government Money
Term Bond Bond Securities Market
Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ----------
ASSETS
Shares held in respective Funds........................... 83 1,347 720 464,376
====== ======= ====== ========
Investments at cost....................................... $ 927 $17,677 $8,148 $464,807
====== ======= ====== ========
Investments in respective Funds, at net asset value....... $ 930 $17,642 $8,201 $464,807
Amount due from MONY...................................... 0 0 0 11
------ ------- ------ --------
Total assets....................................... 930 17,642 8,201 464,818
------ ------- ------ --------
LIABILITIES
Amount due to respective Funds............................ 0 0 0 11
Amount due to MONY........................................ 0 16 7 431
------ ------- ------ --------
Total liabilities.................................. 0 16 7 442
------ ------- ------ --------
Net assets................................................ $ 930 $17,626 $8,194 $464,376
====== ======= ====== ========
Net assets consist of:
Contractholders' net payments............................ $ 887 $16,320 $7,912 $453,213
Undistributed net investment income (loss)............... 35 1,282 215 11,163
Accumulated net realized gain (loss) on investments...... 5 59 14 0
Net unrealized appreciation (depreciation) of investments 3 (35) 53 0
------ ------- ------ --------
Net assets................................................ $ 930 $17,626 $8,194 $464,376
====== ======= ====== ========
Number of units outstanding*.............................. 86 1,527 768 42,453
------ ------- ------ --------
Net asset value per unit outstanding*..................... $10.83 $ 11.55 $10.66 $ 10.94
====== ======= ====== ========
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-68
MONY Custom Estate Master
-------------------------
Enterprise Accumulation Trust
----------------------------------------------------------------------
Small Company International High Yield
Equity Value Managed Growth Bond Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ------------- ---------- ------------- ---------- ----------
4,735 2,758 826 6,794 4,176 19,550
======== ======= ======= ======= ======= ========
$ 76,561 $59,931 $16,993 $34,121 $18,741 $100,396
======== ======= ======= ======= ======= ========
$ 63,957 $55,661 $13,591 $29,582 $16,971 $ 87,676
22 8 0 0 0 0
-------- ------- ------- ------- ------- --------
63,979 55,669 13,591 29,582 16,971 87,676
-------- ------- ------- ------- ------- --------
22 8 0 0 0 0
70 56 14 29 17 85
-------- ------- ------- ------- ------- --------
92 64 14 29 17 85
-------- ------- ------- ------- ------- --------
$ 63,887 $55,605 $13,577 $29,553 $16,954 $ 87,591
======== ======= ======= ======= ======= ========
$ 88,585 $53,037 $17,032 $35,556 $17,193 $107,531
10,753 11,454 1,678 2,803 1,637 126
(22,847) (4,616) (1,731) (4,267) (106) (7,346)
(12,604) (4,270) (3,402) (4,539) (1,770) (12,720)
-------- ------- ------- ------- ------- --------
$ 63,887 $55,605 $13,577 $29,553 $16,954 $ 87,591
======== ======= ======= ======= ======= ========
10,119 5,137 1,826 4,861 1,720 12,145
-------- ------- ------- ------- ------- --------
$ 6.31 $ 10.82 $ 7.43 $ 6.08 $ 9.86 $ 7.21
======== ======= ======= ======= ======= ========
F-69
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Custom Estate Master
--------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------
Growth and Small Company Equity Capital
Income Growth Income Appreciation
Subaccount Subaccount Subaccount Subaccount
------------- ------------- ---------- ------------
ASSETS
Shares held in respective Funds................... 5,406 3,829 3,063 4,842
======= ======= ======= =======
Investments at cost............................... $29,588 $29,884 $15,858 $29,887
======= ======= ======= =======
Investments in respective Funds, at net asset
value........................................... $24,676 $25,803 $14,812 $27,575
Amount due from MONY.............................. 11 0 0 0
------- ------- ------- -------
Total assets............................... 24,687 25,803 14,812 27,575
------- ------- ------- -------
LIABILITIES
Amount due to respective Funds.................... 11 0 0 0
Amount due to MONY America........................ 25 27 15 25
------- ------- ------- -------
Total liabilities.......................... 36 27 15 25
------- ------- ------- -------
Net assets........................................ $24,651 $25,776 $14,797 $27,550
======= ======= ======= =======
Net assets consist of:
Contractholders' net payments................... $31,999 $29,355 $15,621 $32,362
Undistributed net investment income (loss)...... 127 792 50 510
Accumulated net realized gain (loss) on
investments.................................... (2,563) (290) 172 (3,010)
Net unrealized appreciation (depreciation) of
investments.................................... (4,912) (4,081) (1,046) (2,312)
------- ------- ------- -------
Net assets........................................ $24,651 $25,776 $14,797 $27,550
======= ======= ======= =======
Number of units outstanding*...................... 3,372 3,099 1,586 3,777
------- ------- ------- -------
Net asset value per unit outstanding*............. $ 7.31 $ 8.32 $ 9.33 $ 7.29
======= ======= ======= =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-70
MONY Custom Estate Master
-------------------------------------------------------------------------
Enterprise Accumulation Trust
------------------------------------------
Dreyfus Socially
MultiCap MidCap Total Dreyfus Stock Responsible
Growth Balanced Growth Return Index Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ------------- ----------------
7,079 73 268 8 3,662 645
======== ===== ====== ===== ======== =======
$ 62,308 $ 344 $1,927 $ 80 $109,338 $17,827
======== ===== ====== ===== ======== =======
$ 47,483 $ 327 $1,657 $ 79 $ 92,715 $14,278
0 0 0 0 1 9
-------- ----- ------ ----- -------- -------
47,483 327 1,657 79 92,716 14,287
-------- ----- ------ ----- -------- -------
0 0 0 0 1 9
50 0 1 0 94 14
-------- ----- ------ ----- -------- -------
50 0 1 0 95 23
-------- ----- ------ ----- -------- -------
$ 47,433 $ 327 $1,656 $ 79 $ 92,621 $14,264
======== ===== ====== ===== ======== =======
$ 69,686 $ 336 $1,931 $ 80 $115,563 $20,137
(261) 6 (1) 0 1,550 (3)
(7,167) 2 (4) 0 (7,869) (2,321)
(14,825) (17) (270) (1) (16,623) (3,549)
-------- ----- ------ ----- -------- -------
$ 47,433 $ 327 $1,656 $ 79 $ 92,621 $14,264
======== ===== ====== ===== ======== =======
10,357 34 195 8 13,107 2,564
-------- ----- ------ ----- -------- -------
$ 4.58 $9.70 $ 8.49 $9.88 $ 7.07 $ 5.56
======== ===== ====== ===== ======== =======
F-71
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONY Custom Estate Master
-----------------------------------------
Fidelity Variable Insurance Products Funds
-----------------------------------------
VIP III
VIP VIP II Growth
Growth Contrafund Opportunities
Subaccount Subaccount Subaccount
---------- ---------- -------------
ASSETS
Shares held in respective Funds........................... 2,579 2,212 1,375
======== ======= =======
Investments at cost....................................... $ 86,872 $46,271 $21,280
======== ======= =======
Investments in respective Funds, at net asset value....... $ 69,694 $43,722 $17,886
Amount due from MONY America.............................. 7 0 0
-------- ------- -------
Total assets....................................... 69,701 43,722 17,886
-------- ------- -------
LIABILITIES
Amount due to respective Funds............................ 7 0 0
Amount due to MONY America................................ 74 43 18
-------- ------- -------
Total liabilities.................................. 81 43 18
-------- ------- -------
Net assets................................................ $ 69,620 $43,679 $17,868
======== ======= =======
Net assets consist of:
Contractholders' net payments............................ $ 95,000 $47,402 $21,929
Undistributed net investment income (loss)............... 1,563 912 196
Accumulated net realized gain (loss) on investments...... (9,765) (2,086) (863)
Net unrealized appreciation (depreciation) of investments (17,178) (2,549) (3,394)
-------- ------- -------
Net assets................................................ $ 69,620 $43,679 $17,868
======== ======= =======
Number of units outstanding*.............................. 11,374 5,385 2,798
-------- ------- -------
Net asset value per unit outstanding*..................... $ 6.12 $ 8.11 $ 6.39
======== ======= =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-72
MONY Custom Estate Master
- ------------------------------------------------------------------------------------
Lord Abbett PIMCO Variable
Janus Aspen Series Series Fund Insurance Trust
- -------------------------------------------- ----------- ---------------
Aggressive Capital Worldwide Growth & Real
Growth Balanced Appreciation Growth Income Return
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ---------- ---------- ------------ ---------- ----------- --------------- ----------
2,422 2,258 2,698 3,095 3 4
======== ======= ======= ======== ===== ======
$ 46,525 $51,578 $57,495 $ 88,048 $ 73 $ 45 $1,493,530
======== ======= ======= ======== ===== ====== ==========
$ 43,042 $48,840 $51,915 $ 76,586 $ 71 $ 46 $1,360,225
10 0 3 12 0 0 94
-------- ------- ------- -------- ----- ------ ----------
43,052 48,840 51,918 76,598 71 46 1,360,319
-------- ------- ------- -------- ----- ------ ----------
10 0 3 12 0 0 84
44 46 51 77 0 0 1,170
-------- ------- ------- -------- ----- ------ ----------
54 46 54 89 0 0 1,423
-------- ------- ------- -------- ----- ------ ----------
$ 42,998 $48,794 $51,864 $ 76,509 $ 71 $ 46 $1,358,896
======== ======= ======= ======== ===== ====== ==========
$ 69,539 $51,563 $66,143 $101,628 $ 73 $ 45 $1,567,658
743 1,414 661 1,145 0 0 50,550
(23,801) (1,445) (9,360) (14,802) 0 0 (126,007)
(3,483) (2,738) (5,580) (11,462) (2) 1 (133,305)
-------- ------- ------- -------- ----- ------ ----------
$ 42,998 $48,794 $51,864 $ 76,509 $ 71 $ 46 $1,358,896
======== ======= ======= ======== ===== ====== ==========
14,487 5,278 9,654 13,167 7 5
-------- ------- ------- -------- ----- ------
$ 2.97 $ 9.24 $ 5.37 $ 5.81 $9.68 $10.05
======== ======= ======= ======== ===== ======
F-73
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the six months ended June 30, 2002 (unaudited)
MONY Custom Estate Master
---------------------------------------------------------------------
Enterprise
MONY Series Fund, Inc. Accumulation Trust
-------------------------------------------- -----------------------
Intermediate Long Term Government Money Small Company
Term Bond Bond Securities Market Equity Value
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ---------- ---------- -------------
Dividend income..................................... $ 38 $ 824 $222 $3,313 $ 0 $ 0
Distribution from net realized gains................ 0 0 0 0 0 0
Mortality and expense risk charges.................. (2) (30) (12) (751) (112) (96)
---- ----- ---- ------ -------- -------
Net investment income (loss)........................ 36 794 210 2,562 (112) (96)
---- ----- ---- ------ -------- -------
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments............ 2 19 11 0 (16,702) (1,547)
Net change in unrealized appreciation
(depreciation) of investments.................... (10) (360) (41) 0 (2,054) 2,989
---- ----- ---- ------ -------- -------
Net realized and unrealized gain (loss) on
investments....................................... (8) (341) (30) 0 (18,756) 1,442
---- ----- ---- ------ -------- -------
Net increase (decrease) in net assets resulting from
operations........................................ $ 28 $ 453 $180 $2,562 $(18,868) $ 1,346
==== ===== ==== ====== ======== =======
- ----------
** Commencement of operations
See notes to financial statements.
F-74
MONY Custom Estate Master
- ----------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ----------------------------------------------------------------------------------------------
International High Yield Growth and Small Company Equity Capital
Managed Growth Bond Growth Income Growth Income Appreciation
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ------------- ---------- ---------- ---------- ------------- ---------- ------------
$ 0 $ 0 $ 693 $ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0 0 0 0
(29) (52) (28) (136) (43) (50) (27) (46)
------- ------- ------- -------- ------- ------- ----- -------
(29) (52) 665 (136) (43) (50) (27) (46)
------- ------- ------- -------- ------- ------- ----- -------
(840) (2,960) (54) (4,500) (1,950) (117) (23) (1,670)
(1,953) 3,011 (1,162) (9,527) (2,569) (4,251) (548) 1,570
------- ------- ------- -------- ------- ------- ----- -------
(2,793) 51 (1,216) (14,027) (4,519) (4,368) (571) (100)
------- ------- ------- -------- ------- ------- ----- -------
$(2,822) $ (1) $ (551) $(14,163) $(4,562) $(4,418) $(598) $ (146)
======= ======= ======= ======== ======= ======= ===== =======
F-75
MONY
Variable Account L
STATEMENT OF OPERATIONS (unaudited) (continued)
MONY Custom Estate Master
-----------------------------------------------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------------
Dreyfus Dreyfus
Multi-Cap Mid-Cap Stock Socially
Growth Balanced Growth Total Return Index Responsible Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------- ------------- ------------- --------------- ------------- ------------------
For the period
For the six For the six For the six June 17, 2002** For the six For the six
months ended months ended months ended through months ended months ended
June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002
------------- ------------- ------------- --------------- ------------- ------------------
Dividend income...................... $ 0 $ 0 $ 0 $ 0 $ 284 $ 1
Distribution from net realized
gains.............................. 0 0 0 0 0 0
Mortality and expense risk charges... (91) 0 (1) 0 (159) (25)
-------- ---- ----- --- -------- -------
Net investment income (loss)......... (91) 0 (1) 0 125 (24)
-------- ---- ----- --- -------- -------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments....................... (2,968) 1 (4) 0 (5,620) (745)
Net change in unrealized
depreciation of investments....... (8,948) (29) (270) (1) (9,154) (2,091)
-------- ---- ----- --- -------- -------
Net realized and unrealized gain
(loss) on investments.............. (11,916) (28) (274) (1) (14,774) (2,836)
-------- ---- ----- --- -------- -------
Net increase (decrease) in net assets
resulting from operations.......... $(12,007) $(28) $(275) $(1) $(14,649) $(2,860)
======== ==== ===== === ======== =======
- ----------
** Commencement of operations
See notes to financial statements.
F-76
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
F-77
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the six months ended June 30, 2002 (unaudited)
MONY Custom Estate Master
-----------------------------------------
Fidelity Variable Insurance Products Funds
-----------------------------------------
VIP VIP II VIP III
Growth Contrafund Growth Opportunities
Subaccount Subaccount Subaccount
---------- ---------- --------------------
Dividend income..................................................... $ 86 $ 335 $ 148
Distribution from net realized gains................................ 0 0 0
Mortality and expense risk charges.................................. (129) (80) (32)
-------- ----- -------
Net investment income (loss)........................................ (43) 255 116
-------- ----- -------
Realized and unrealized loss on investments:
Net realized loss on investments................................... (6,254) (996) (100)
Net change in unrealized appreciation (depreciation) of investments (10,629) 379 (2,701)
-------- ----- -------
Net realized and unrealized loss on investments..................... (16,883) (617) (2,801)
-------- ----- -------
Net decrease in net assets resulting from operations................ $(16,926) $(362) $(2,685)
======== ===== =======
- ----------
** Commencement of operations
See notes to financial statements.
F-78
MONY Custom Estate Master
--------------------------------------------
Janus Aspen Series
--------------------------------------------
Aggressive Capital Worldwide
Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ------------ ----------
$ 0 $ 559 $ 188 $ 309
0 0 0 0
(70) (73) (84) (132)
-------- ------- ------- --------
(70) 486 104 177
-------- ------- ------- --------
(13,993) (966) (6,338) (8,496)
5,228 (1,397) 2,352 (3,093)
-------- ------- ------- --------
(8,765) (2,363) (3,986) (11,589)
-------- ------- ------- --------
$ (8,835) $(1,877) $(3,882) $(11,412)
======== ======= ======= ========
F-79
MONY
Variable Account L
STATEMENT OF OPERATIONS (unaudited)(continued)
MONY Custom Estate Master
----------------------------------
Lord Abbett Series PIMCO Variable
Fund Insurance Trust
------------------ ---------------
Growth & Real
Income Return
Subaccount Subaccount
------------------ ---------------
For the period For the period
June 17, 2002** June 17, 2002**
through through
June 30, 2002 June 30, 2002 Total
------------------ --------------- ---------
Dividend income........................................................ $ 0 $0 $ 7,000
Distribution from net realized gains................................... 0 0 0
Mortality and expense risk charges..................................... 0 0 (2,290)
--- -- ---------
Net investment income.................................................. 0 0 4,710
--- -- ---------
Realized and unrealized loss on investments:
Net realized loss on investments..................................... 0 0 (76,810)
Net change in unrealized appreciation (depreciation) of investments.. (2) 1 (45,260)
--- -- ---------
Net realized and unrealized gain (loss) on investments................. (2) 1 (122,070)
--- -- ---------
Net increase (decrease) in net assets resulting from operations........ $(2) $1 (117,360)
=== == =========
- ----------
** Commencement of operations
See notes to financial statements.
F-80
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
F-81
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
MONY Custom Estate Master
-------------------------------------------------------
MONY Series Fund, Inc.
-------------------------------------------------------
Intermediate Long Term
Term Bond Bond
Subaccount Subaccount
----------------------------- ------------------------
For the six For the period For the six For the year
months ended April 2, 2001** months ended ended
June 30, through June 30, December 31,
2002 December 31, 2001 2002 2001
------------ ----------------- ------------ ------------
(unaudited) (unaudited)
From operations:
Net investment income (loss)............................... $ 36 $ (1) $ 794 $ 494
Net realized gain on investments .......................... 2 3 19 37
Net change in unrealized appreciation (depreciation) of
investments............................................... (10) 13 (360) 60
---- ------ ------- -------
Net increase in net assets resulting from operations......... 28 15 453 591
---- ------ ------- -------
From unit transactions:
Net proceeds from the issuance of units..................... 0 1,045 6,353 2,505
Net asset value of units redeemed or used to meet contract
obligations............................................... (73) (85) (562) (593)
---- ------ ------- -------
Net increase (decrease) from unit transactions............... (73) 960 5,791 1,912
---- ------ ------- -------
Net increase (decrease) in net assets........................ (45) 975 6,244 2,503
Net assets beginning of period .............................. 975 0 11,382 8,879
---- ------ ------- -------
Net assets end of period*.................................... $930 $ 975 $17,626 $11,382
==== ====== ======= =======
Unit transactions:
Units outstanding beginning of period........................ 93 0 1,011 835
Units issued during the period............................... 0 101 553 230
Units redeemed during the period............................. (7) (8) (37) (54)
---- ------ ------- -------
Units outstanding end of period.............................. 86 93 1,527 1,011
==== ====== ======= =======
* Includes undistributed net investment income (loss) of: $ 35 $ (1) $ 1,282 $ 488
==== ====== ======= =======
- ----------
** Commencementof operations
See notes to financial statements.
F-82
MONY Custom Estate Master
- -----------------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
- ------------------------------------------------------- --------------------------------------------------
Government Money Small Company
Securities Market Equity Value
Subaccount Subaccount Subaccount Subaccount
- ----------------------------- ------------------------ ------------------------ ------------------------
For the six For the period For the six For the year For the six For the year For the six For the year
months ended March 14, 2001** months ended ended months ended ended months ended ended
June 30, through June 30, December 31, June 30, December 31, June 30, December 31,
2002 December 31, 2001 2002 2001 2002 2001 2002 2001
- ------------ ----------------- ------------ ------------ ------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 210 $ 5 $ 2,562 $ 5,827 $ (112) $ 8,648 $ (96) $ 9,514
11 3 0 0 (16,702) (3,785) (1,547) (804)
(41) 94 0 0 (2,054) (9,555) 2,989 (7,126)
------ ------ -------- -------- -------- ------- ------- -------
180 102 2,562 5,827 (18,868) (4,692) 1,346 1,584
------ ------ -------- -------- -------- ------- ------- -------
4,028 5,006 103,126 356,079 33,028 56,343 12,237 31,688
(533) (589) (24,381) (67,279) (4,953) (6,293) (2,600) (4,129)
------ ------ -------- -------- -------- ------- ------- -------
3,495 4,417 78,745 288,800 28,075 50,050 9,637 27,559
------ ------ -------- -------- -------- ------- ------- -------
3,675 4,519 81,307 294,627 9,207 45,358 10,983 29,143
4,519 0 383,069 88,442 54,680 9,322 44,622 15,479
------ ------ -------- -------- -------- ------- ------- -------
$8,194 $4,519 $464,376 $383,069 $ 63,887 $54,680 $55,605 $44,622
====== ====== ======== ======== ======== ======= ======= =======
434 0 35,225 8,412 6,197 928 4,236 1,541
381 492 9,447 33,096 5,234 6,560 1,131 3,125
(47) (58) (2,219) (6,283) (1,312) (762) (230) (430)
------ ------ -------- -------- -------- ------- ------- -------
768 434 42,453 35,225 10,119 6,726 5,137 4,236
====== ====== ======== ======== ======== ======= ======= =======
$ 215 $ 5 $ 11,163 $ 8,601 $ 10,753 $10,865 $11,454 $11,550
====== ====== ======== ======== ======== ======= ======= =======
F-83
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
--------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------
International
Managed Growth
Subaccount Subaccount
------------------------ ------------------------
For the six For the year For the six For the year
months ended ended months ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
------------ ------------ ------------ ------------
(unaudited) (unaudited)
From operations:
Net investment income (loss)......................... $ (29) $ 1,030 $ (52) $ 2,336
Net realized loss on investments..................... (840) (835) (2,960) (1,178)
Net change in unrealized appreciation (depreciation)
of investments...................................... (1,953) (846) 3,011 (6,782)
------- ------- ------- -------
Net decrease in net assets resulting from operations... (2,822) (651) (1) (5,624)
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.............. 2,655 17,719 5,704 17,902
Net asset value of units redeemed or used to meet
contract obligations................................ (610) (5,076) (681) (1,581)
------- ------- ------- -------
Net increase from unit transactions.................... 2,045 12,643 5,023 16,321
------- ------- ------- -------
Net increase (decrease) in net assets.................. (777) 11,992 5,022 10,697
Net assets beginning of period......................... 14,354 2,362 24,531 13,834
------- ------- ------- -------
Net assets end of period*.............................. $13,577 $14,354 $29,553 $24,531
======= ======= ======= =======
Unit transactions:
Units outstanding beginning of period.................. 1,617 236 4,047 1,641
Units issued during the period......................... 307 1,912 926 2,656
Units redeemed during the period....................... (98) (531) (112) (250)
------- ------- ------- -------
Units outstanding end of period........................ 1,826 1,617 4,861 4,047
======= ======= ======= =======
* Includesundistributed net investment income of: $ 1,678 $ 1,707 $ 2,803 $ 2,855
======= ======= ======= =======
- ----------
** Commencement of operations
See notes to financial statements.
F-84
MONY Custom Estate Master
- ------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ------------------------------------------------------------------------------------------------------
Growth and Small Company
High Yield Bond Growth Income Growth
Subaccount Subaccount Subaccount Subaccount
- ------------------------ ------------------------ ------------------------ ------------------------
For the six For the year For the six For the year For the six For the year For the six For the year
months ended ended months ended ended months ended ended months ended ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 665 $ 820 $ (136) $ 68 $ (43) $ 164 $ (50) $ 808
(54) (47) (4,500) (2,634) (1,950) (617) (117) (201)
(1,162) (290) (9,527) (2,248) (2,569) (2,117) (4,251) 299
------- ------- -------- -------- ------- ------- ------- -------
(551) 483 (14,163) (4,814) (4,562) (2,570) (4,418) 906
------- ------- -------- -------- ------- ------- ------- -------
7,876 1,541 46,226 45,363 7,093 26,778 2,502 19,290
(531) (520) (4,332) (11,723) (9,039) (4,593) (1,044) (2,384)
------- ------- -------- -------- ------- ------- ------- -------
7,345 1,021 41,894 33,640 (1,946) 22,185 1,458 16,906
------- ------- -------- -------- ------- ------- ------- -------
6,794 1,504 27,731 28,826 (6,508) 19,615 (2,960) 17,812
10,160 8,656 59,860 31,034 31,159 11,544 28,736 10,924
------- ------- -------- -------- ------- ------- ------- -------
$16,954 $10,160 $ 87,591 $ 59,860 $24,651 $31,159 $25,776 $28,736
======= ======= ======== ======== ======= ======= ======= =======
1,004 903 7,125 3,218 3,587 1,167 2,949 1,074
770 153 5,721 5,303 970 2,935 288 2,140
(54) (52) (701) (1,396) (1,185) (515) (138) (265)
------- ------- -------- -------- ------- ------- ------- -------
1,720 1,004 12,145 7,125 3,372 3,587 3,099 2,949
======= ======= ======== ======== ======= ======= ======= =======
$ 1,637 $ 972 $ 126 $ 262 $ 127 $ 170 $ 792 $ 842
======= ======= ======== ======== ======= ======= ======= =======
F-85
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
--------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------
Equity Capital
Income Appreciation
Subaccount Subaccount
------------------------ ------------------------
For the six For the year For the six For the year
months ended ended months ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
------------ ------------ ------------ ------------
(unaudited) (unaudited)
From operations:
Net investment income (loss)............................................. $ (27) $ 56 $ (46) $ 82
Net realized gain (loss) on investments.................................. (23) 171 (1,670) (1,204)
Net change in unrealized appreciation (depreciation) of investments...... (548) (1,073) 1,570 (2,724)
------- ------- ------- -------
Net decrease in net assets resulting from operations....................... (598) (846) (146) (3,846)
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.................................. 3,310 8,126 4,467 21,985
Net asset value of units redeemed or used to meet contract obligations... (364) (9,172) (3,960) (3,056)
------- ------- ------- -------
Net increase (decrease) from unit transactions............................. 2,946 (1,046) 507 18,929
------- ------- ------- -------
Net increase (decrease) in net assets...................................... 2,348 (1,892) 361 15,083
Net assets beginning of period............................................. 12,449 14,341 27,189 12,106
------- ------- ------- -------
Net assets end of period*.................................................. $14,797 $12,449 $27,550 $27,189
======= ======= ======= =======
Unit transactions:
Units outstanding beginning of period...................................... 1,282 1,313 3,721 1,335
Units issued during the period............................................. 343 839 599 2,811
Units redeemed during the period........................................... (39) (870) (543) (425)
------- ------- ------- -------
Units outstanding end of period............................................ 1,586 1,282 3,777 3,721
======= ======= ======= =======
* Includes undistributed net investment income (loss) of: $ 50 $ 77 $ 510 $ 556
======= ======= ======= =======
- ----------
** Commencement of operations
See notes to financial statements.
F-86
MONY Custom Estate Master
- --------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- --------------------------------------------------------------------------------------------------------
Multi-Cap Mid-Cap
Growth Balanced Growth Total Return
Subaccount Subaccount Subaccount Subaccount
- ------------------------ ----------------------------- ------------------------------- ---------------
For the six For the year For the six For the period For the six For the period For the period
months ended ended months ended April 2, 2001** months ended November 21, 2001** June 17, 2002**
June 30, December 31, June 30, through June 30, through through
2002 2001 2002 December 31, 2001 2002 December 31, 2001 June 30, 2002
- ------------ ------------ ------------ ----------------- ------------ ------------------- ---------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ (91) $ (146) $ 0 $ 6 $ (1) $ 0 $ 0
(2,968) (3,729) 1 1 (4) 0 0
(8,948) (1,686) (29) 12 (270) 0 (1)
-------- ------- ---- ---- ------ ---- ---
(12,007) (5,561) (28) 19 (275) 0 (1)
-------- ------- ---- ---- ------ ---- ---
8,370 44,917 0 434 1,986 28 80
(1,925) (6,053) (36) (62) (69) (14) 0
-------- ------- ---- ---- ------ ---- ---
6,445 38,864 (36) 372 1,917 14 80
-------- ------- ---- ---- ------ ---- ---
(5,562) 33,303 (64) 391 1,642 14 79
52,995 19,692 391 0 14 0 0
-------- ------- ---- ---- ------ ---- ---
$ 47,433 $52,995 $327 $391 $1,656 $ 14 $79
======== ======= ==== ==== ====== ==== ===
9,181 2,823 37 0 1 0 0
1,648 7,402 0 43 202 2 8
(472) (1,044) (3) (6) (8) (1) 0
-------- ------- ---- ---- ------ ---- ---
10,357 9,181 34 37 195 1 8
======== ======= ==== ==== ====== ==== ===
$ (261) $ (170) $ 6 $ 6 $ (1) $ 0 $ 0
======== ======= ==== ==== ====== ==== ===
F-87
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
--------------------------------------------------
Dreyfus Stock Dreyfus Socially
Index Responsible Growth
Subaccount Subaccount
------------------------ ------------------------
For the six For the year For the six For the year
months ended ended months ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
------------ ------------ ------------ ------------
(unaudited) (unaudited)
From operations:
Net investment income (loss).............................. $ 125 $ 936 $ (24) $ (24)
Net realized loss on investments.......................... (5,620) (2,187) (745) (1,078)
Net change in unrealized depreciation of investments...... (9,154) (4,494) (2,091) (998)
-------- ------- ------- -------
Net decrease in net assets resulting from operations....... (14,649) (5,745) (2,860) (2,100)
-------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of units................... 27,997 69,752 3,675 12,202
Net asset value of units redeemed or used to meet contract
obligations............................................. (4,228) (7,098) (1,278) (1,622)
-------- ------- ------- -------
Net increase from unit transactions........................ 23,769 62,654 2,397 10,580
-------- ------- ------- -------
Net increase (decrease) in net assets...................... 9,120 56,909 (463) 8,480
Net assets beginning of period............................. 83,501 26,592 14,727 6,247
-------- ------- ------- -------
Net assets end of period .................................. $ 92,621 $83,501 $14,264 $14,727
======== ======= ======= =======
Unit transactions:
Units outstanding beginning of period...................... 10,189 2,839 2,190 717
Units issued during the period............................. 3,609 8,193 604 1,698
Units redeemed during the period........................... (691) (843) (230) (225)
-------- ------- ------- -------
Units outstanding end of period............................ 13,107 10,189 2,564 2,190
======== ======= ======= =======
* Includes undistributed net investment income of: $ 1,550 $ 489 $ (3) $ 45
======== ======= ======= =======
- ----------
** Commencement of operations
See notes to financial statements.
F-88
MONY Custom Estate Master
- ------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds Janus Aspen Series
- ---------------------------------------------------------------------------- ------------------------
VIP VIP II VIP III Aggressive
Growth Contrafund Growth Opportunities Growth
Subaccount Subaccount Subaccount Subaccount
- ------------------------ ------------------------ ------------------------ ------------------------
For the six For the For the six For the For the six For the For the six For the
months ended year ended months ended year ended months ended year ended months ended year ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ (43) $ 1,459 $ 255 $ 672 $ 116 $ (22) $ (70) $ (96)
(6,254) (3,339) (996) (855) (100) (730) (13,993) (9,172)
(10,629) (5,686) 379 (2,521) (2,701) (392) 5,228 (3,445)
-------- ------- ------- -------- ------- ------- --------- --------
(16,926) (7,566) (362) (2,704) (2,685) (1,144) (8,835) (12,713)
-------- ------- ------- -------- ------- ------- --------- --------
22,948 77,497 3,988 34,282 3,173 16,439 165,917 40,375
(6,208) (8,000) (1,999) (3,472) (765) (1,440) (148,874) (5,189)
-------- ------- ------- -------- ------- ------- --------- --------
16,740 69,497 1,989 30,810 2,408 14,999 17,043 35,186
-------- ------- ------- -------- ------- ------- --------- --------
(186) 61,931 1,627 28,106 (277) 13,855 8,208 22,473
69,806 7,875 42,052 (13,946) 18,145 4,290 34,790 12,317
-------- ------- ------- -------- ------- ------- --------- --------
$ 69,620 $69,806 $43,679 $ 42,052 $17,868 $18,145 $ 42,998 $ 34,790
======== ======= ======= ======== ======= ======= ========= ========
9,189 850 5,132 1,486 2,459 496 9,449 2,017
3,309 9,350 624 4,057 458 2,154 55,514 8,696
(1,124) (1,011) (371) (411) (119) (191) (50,476) (1,264)
-------- ------- ------- -------- ------- ------- --------- --------
11,374 9,189 5,385 5,132 2,798 2,459 14,487 9,449
======== ======= ======= ======== ======= ======= ========= ========
1,563 $ 147 $ 912 $ (15) $ 196 $ 102 $ 743 $ 909
======== ======= ======= ======== ======= ======= ========= ========
F-89
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
--------------------------------------------------
Janus Aspen Series
--------------------------------------------------
Capital
Balanced Appreciation
Subaccount Subaccount
------------------------ ------------------------
For the six For the year For the six For the year
months ended ended months ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
------------ ------------ ------------ ------------
(unaudited) (unaudited)
From operations:
Net investment............................. $ 486 $ 713 $ 104 $ 454
Net realized loss on investments........... (966) (456) (6,338) (2,907)
Net change in unrealized depreciation of
investments............................... (1,397) (1,161) 2,352 (5,696)
------- ------- ------- -------
Net decrease in net assets resulting from
operations................................. (1,877) (904) (3,882) (8,149)
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.... 17,454 34,764 15,058 45,861
Net asset value of units redeemed or used
to meet contract obligations.............. (1,896) (4,874) (3,376) (5,894)
------- ------- ------- -------
Net increase from unit transactions.......... 15,558 29,890 11,682 39,967
------- ------- ------- -------
Net increase in net assets................... 13,681 28,986 7,800 31,818
Net assets beginning of period............... 35,113 6,127 44,064 12,246
------- ------- ------- -------
Net assets end of period* ................... $48,794 $35,113 $51,864 $44,064
======= ======= ======= =======
Unit transactions:
Units outstanding beginning of period........ 3,671 608 7,623 1,653
Units issued during the period............... 1,812 3,571 2,659 6,927
Units redeemed during the period............. (205) (508) (628) (957)
------- ------- ------- -------
Units outstanding end of period.............. 5,278 3,671 9,654 7,623
======= ======= ======= =======
* Includes undistributed net investment
income of: $ 1,414 $ 215 $ 661 $ 103
======= ======= ======= =======
- ----------
** Commencement of operations
See notes to financial statements.
F-90
MONY Custom Estate Master
- ------------------------------------------------------------
Lord Abbett Series PIMCO Variable
Janus Aspen Series Fund Insurance Trust
- ------------------------ ------------------ ---------------
Worldwide Growth & Real
Growth Income Return
Subaccount Subaccount Subaccount Total
- ------------------------ ------------------ --------------- ------------------------
For the six For the year For the period For the period For the six For the year
months ended ended June 17, 2002** June 17, 2002** months ended ended
June 30, December 31, through through June 30, December 31,
2002 2001 June 30, 2002 June 30, 2002 2002 2001
- ------------ ------------ ------------------ --------------- ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 177 $ 131 $ 0 $ 0 $ 4,710 $ 33,934
(8,496) (4,931) 0 0 (76,810) (40,474)
(3,093) (5,308) (2) 1 (45,260) (63,670)
-------- -------- --- --- ---------- ----------
(11,412) (10,108) (2) 1 (117,360) (70,210)
-------- -------- --- --- ---------- ----------
25,972 62,365 73 45 535,341 1,050,286
(5,417) (7,786) 0 0 (229,734) (168,577)
-------- -------- --- --- ---------- ----------
20,555 54,579 73 45 305,607 881,709
-------- -------- --- --- ---------- ----------
9,143 44,471 71 46 188,247 811,499
67,366 22,895 0 0 1,170,649 331,258
-------- -------- --- --- ---------- ----------
$ 76,509 $ 67,366 $71 $46 $1,358,896 $1,142,757
======== ======== === === ========== ==========
10,066 2,643 0 0
4,133 8,523 7 5
(1,032) (1,100) 0 0
-------- -------- --- ---
13,167 10,066 7 5
======== ======== === ===
$ 1,145 $ 837 $ 0 $ 0 $ 50,550 $ 45,840
======== ======== === === ========== ==========
F-91
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. Organization and Business
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist), Variable Universal Life (MONYEquity Master,
MONY Custom Equity Master and MONY Custom Estate Master), MONY Variable
Universal Life and MONY Survivorship Variable Universal Life. These policies
are issued by MONY. For presentation purposes, the information related only to
the Variable Universal Life Insurance policies (MONY Custom Estate Master) is
presented here.
There are thirty-five MONY Custom Estate Master Subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of
the MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Dreyfus Stock Index Fund, Dreyfus Socially Responsible Growth
Fund, Inc., Fidelity Variable Insurance Products Funds, Janus Aspen Series,
Lord Abbett Series Fund, The Alger American Fund, PIMCO Variable Insurance
Trust or The Universal Institutional Funds (collectively, the "Funds").
Twenty-nine subaccounts of MONY Custom Estate Master commenced operations
during the period ended June 30, 2002. The Funds are registered under the 1940
Act as open end, diversified, management investment companies. The Fund and
Enterprise are affiliated with MONY.
A full presentation of the related financial statements and footnotes of the
Funds are contained on pages hereinafter and should be read in conjunction with
these financial statements.
2. Significant Accounting Policies
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolio is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the Money Market Portfolios, value is based on amortized cost of
the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income and
distributions of net realized gains are recorded on the ex-dividend date.
Investment income includes dividends from net investment income and
distribution of net realized gains received from the respective portfolios of
the Funds. Dividends and distributions received are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based on
current tax law, to incur any income tax burden upon the earnings or realized
gains attributable to the Variable Account. Based on this expectation, no
charges are currently being deducted from the Variable Account for Federal
income tax purposes.
F-92
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
3. Related Party Transactions
MONY is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for such purposes for all of the
MONY Custom Estate Master Subaccounts for the six months ended June 30, 2002
aggregated $ 85,298.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.35% of the average daily net assets of
each of the MONY Custom Estate Master subaccounts. As MONY Life Insurance
Company of America, a wholly-owned subsidiary of MONY, acts as investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the six months ended
June 30, 2002, MONY received $221 in aggregate from certain Funds in connection
with MONY Custom Estate Master subaccounts.
F-93
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. Investment Transactions:
Cost of shares acquired and the proceeds from redemption of shares by each
subaccount during the six months ended June 30, 2002 were as follows:
Cost of Shares
Acquired
(Excludes Proceeds from
MONY Custom Estate Master Subaccounts Reinvestments) Shares Redeemed
------------------------------------- -------------- ---------------
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio.............. $ 0 $ 74
Long Term Bond Portfolio...................... 6,347 588
Government Securities Portfolio............... 3,988 508
Money Market Portfolio........................ 100,927 24,190
Enterprise Accumulation Trust
Equity Portfolio.............................. 62,211 34,257
Small Company Value Portfolio................. 16,460 6,926
Managed Portfolio............................. 6,212 4,199
International Growth Portfolio................ 9,317 4,350
High Yield Bond Portfolio..................... 7,641 561
Growth Portfolio.............................. 76,541 34,793
Growth and Income Portfolio................... 7,457 9,451
Small Company Growth Portfolio................ 2,785 1,382
Equity Income Portfolio....................... 3,310 393
Capital Appreciation Portfolio................ 4,723 4,267
Multi-Cap Growth Portfolio.................... 11,025 4,680
Balanced Portfolio............................ 0 37
Mid-Cap Growth Portfolio...................... 1,981 66
Total Return Bond Portfolio................... 80 0
Dreyfus
Dreyfus Stock Index Fund...................... 42,958 19,361
Dreyfus Socially Responsible Growth Fund, Inc. 4,338 1,969
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 38,363 21,764
VIP II Contrafund Portfolio................... 7,658 5,755
VIP III Growth Opportunities Portfolio........ 3,036 662
Janus Aspen Series
Aggressive Growth Portfolio................... 458,170 441,202
Balanced Portfolio............................ 32,454 17,533
Capital Appreciation Portfolio................ 30,113 18,711
Worldwide Growth Portfolio.................... 44,610 24,507
Lord Abbet Series Fund
Growth & Income Portfolio..................... 153 79
PIMCO Variable Insurance Trust
Real Return Portfolio......................... 46 0
F-94
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights
A summary of unit values and units outstanding for Variable Contracts and
the expense ratios, excluding expenses of the underlying funds, for the period
ended December 31, 2001, were as follows:
Net Net Expense as a
Unit Assets Income % of Average Total
MONY Custom Estate Master Subaccounts Units Values (000s) Ratio Net Assets Return
- ------------------------------------- ------ ------ ------ ------ ------------ ------
MONY Series Fund, Inc.
Intermediate Term Bond Subaccount............. 93 $10.52 $ 1 (0.18)% 0.35% 0.00%
Long Term Bond Subaccount..................... 1,011 11.26 11 4.89% 0.35% 5.92%
Government Securities Subaccount.............. 434 10.41 5 0.19% 0.35% 0.00%
Money Market Subaccount....................... 35,225 10.88 383 2.86% 0.35% 3.44%
Enterprise Accumulation Trust
Equity Portfolio.............................. 6,726 8.13 55 21.69% 0.35% (19.10)%
Small Company Value Portfolio................. 4,236 10.54 45 30.29% 0.35% 4.87%
Managed Portfolio............................. 1,617 8.88 14 9.40% 0.35% (11.47)%
International Growth Portfolio................ 4,047 6.06 25 11.40% 0.35% (28.08)%
High Yield Bond Portfolio..................... 1,004 10.12 10 8.53% 0.35% 5.53%
Growth Portfolio.............................. 7,125 8.40 60 0.16% 0.35% (12.88)%
Growth and Income Portfolio................... 3,587 8.69 31 0.75% 0.35% (12.18)%
Small Company Growth Portfolio................ 2,949 9.74 29 3.76% 0.35% (4.16)%
Equity Income Portfolio....................... 1,282 9.71 12 0.45% 0.35% (11.08)%
Capital Appreciation Portfolio................ 3,721 7.31 27 0.37% 0.35% (19.42)%
Multi-Cap Growth Portfolio.................... 9,181 5.77 53 (0.35)% 0.35% (17.26)%
Balanced Portfolio............................ 37 10.51 0* 2.08% 0.35% N/A
Mid-Cap Growth Portfolio...................... 1 10.58 0* 0.00% 0.35% N/A
Dreyfus
Dreyfus Stock Index Fund...................... 10,189 8.20 84 1.78% 0.35% (12.50)%
Dreyfus Socially Responsible Growth Fund, Inc. 2,190 6.72 15 (0.24)% 0.35% (22.86)%
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 9,189 7.60 70 2.87% 0.35% (18.03)%
VIP II Contrafund Portfolio................... 5,132 8.19 42 2.46% 0.35% (12.68)%
VIP III Growth Opportunities Portfolio........ 2,459 7.38 18 (0.18)% 0.35% (14.75)%
Janus Aspen Series
Aggressive Growth Portfolio................... 9,449 3.68 35 (0.35)% 0.35% (39.70)%
Balanced Portfolio............................ 3,671 9.57 35 2.82% 0.35% (5.00)%
Capital Appreciation Portfolio................ 7,623 5.78 44 1.24% 0.35% (21.97)%
Worldwide Growth Portfolio.................... 10,066 6.69 67 0.29% 0.35% (22.73)%
- ----------
* Amounts round to less than one thousand
F-95
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
Strategist
-----------------------------------------------------------------------------
MONY Series Fund, Inc.
-----------------------------------------------------------------------------
Equity Equity Intermediate Long Term Money
Growth Income Term Bond Bond Diversified Market
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
---------- ---------- ------------ ---------- ----------- ---------- --------
ASSETS
Shares held in respective Funds................... 4,670 3,375 705 1,178 8,997 18,826
======== ======== ======= ======== ======== ========
Investments at cost............................... $ 94,093 $ 62,079 $ 7,516 $ 14,174 $135,230 $ 18,826 $331,918
======== ======== ======= ======== ======== ======== ========
Investments in respective Funds, at net asset
value........................................... $ 65,824 $ 47,566 $ 7,881 $ 15,439 $ 79,410 $ 18,826 $234,946
Amount due from MONY.............................. 33 23 0 0 0 0 56
Amount due from respective Funds.................. 0 0 0 0 0 0 0
-------- -------- ------- -------- -------- -------- --------
Total assets............................... 65,857 47,589 7,881 15,439 79,410 18,826 235,002
-------- -------- ------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY................................ 108 79 13 25 137 60 422
Amount due to respective Funds.................... 33 23 0 0 0 0 56
-------- -------- ------- -------- -------- -------- --------
Total liabilities.......................... 141 102 13 25 137 60 478
-------- -------- ------- -------- -------- -------- --------
Net assets........................................ $ 65,716 $ 47,487 $ 7,868 $ 15,414 $ 79,273 $ 18,766 $234,524
======== ======== ======= ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments................... $ (9,924) $ 14,163 $(4,550) $(22,048) $ 16,075 $(11,356) $(17,640)
Undistributed net investment income............. 99,811 44,969 10,811 30,493 109,745 30,122 325,951
Accumulated net realized gain (loss) on
investments.................................... 4,098 2,868 1,242 5,704 9,273 0 23,185
Net unrealized appreciation (depreciation) of
investments.................................... (28,269) (14,513) 365 1,265 (55,820) 0 (96,972)
-------- -------- ------- -------- -------- -------- --------
Net assets........................................ $ 65,716 $ 47,487 $ 7,868 $ 15,414 $ 79,273 $ 18,766 $234,524
======== ======== ======= ======== ======== ======== ========
Number of units outstanding*...................... 1,380 987 291 473 2,055 911
======== ======== ======= ======== ======== ========
Net asset value per unit outstanding*............. $ 47.62 $ 48.09 $ 27.05 $ 32.60 $ 38.58 $ 20.60
======== ======== ======= ======== ======== ========
- ----------
* Units outstanding have been rounded for presentation purposes.
** Amounts round to less than one.
See notes to financial statements.
F-96
MONYEquity Master
- ------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
- --------------------------------------------- --------------------------------------------------
Small
Government Intermediate Long Term Money Company International
Securities Term Bond Bond Market Equity Value Managed Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ------------ ---------- ---------- ----------- ---------- ----------- -------------
21,726 12,754 24,192 558,365 383,874 226,694 446,406 289,229
======== ======== ======== ======== =========== ========== =========== ==========
$240,266 $138,604 $306,255 $559,477 $ 9,867,803 $5,432,720 $11,166,532 $1,809,823
======== ======== ======== ======== =========== ========== =========== ==========
$247,721 $142,611 $317,291 $559,477 $ 5,191,382 $4,580,173 $ 7,356,807 $1,260,764
3 3 14 0 983 498 1,392 128
0 0 6 2 915 355 61 326
-------- -------- -------- -------- ----------- ---------- ----------- ----------
247,724 142,614 317,311 559,479 5,193,280 4,581,026 7,358,260 1,261,218
-------- -------- -------- -------- ----------- ---------- ----------- ----------
482 278 629 1,113 12,866 10,067 16,641 2,874
3 3 14 0 983 498 1,392 128
-------- -------- -------- -------- ----------- ---------- ----------- ----------
485 281 643 1,113 13,849 10,565 18,033 3,002
-------- -------- -------- -------- ----------- ---------- ----------- ----------
$247,239 $142,333 $316,668 $558,366 $ 5,179,431 $4,570,461 $ 7,340,227 $1,258,216
======== ======== ======== ======== =========== ========== =========== ==========
$216,668 $124,981 $270,043 $493,629 $ 7,651,313 $3,764,208 $ 8,861,841 $1,576,592
22,350 13,506 45,464 64,737 3,553,113 1,902,830 5,064,684 293,721
766 (161) (9,875) 0 (1,348,574) (244,030) (2,776,573) (63,038)
7,455 4,007 11,036 0 (4,676,421) (852,547) (3,809,725) (549,059)
-------- -------- -------- -------- ----------- ---------- ----------- ----------
$247,239 $142,333 $316,668 $558,366 $ 5,179,431 $4,570,461 $ 7,340,227 $1,258,216
======== ======== ======== ======== =========== ========== =========== ==========
18,703 10,580 22,804 44,786 558,160 210,198 647,801 126,553
======== ======== ======== ======== =========== ========== =========== ==========
$ 13.22 $ 13.45 $ 13.89 $ 12.47 $ 9.28 $ 21.74 $ 11.33 $ 9.94
======== ======== ======== ======== =========== ========== =========== ==========
F-97
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONYEquity Master
------------------------------------------------------------------
Enterprise Accumulation Trust
------------------------------------------------------------------
High Yield Growth Capital Equity
Bond Growth and Income Appreciation Balanced Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ------------ ---------- ----------
ASSETS
Shares held in respective Funds..................... 148,673 48,623 102,562 17,458 150 723
======== ======== ========= ======== ===== ======
Investments at cost................................. $696,136 $276,925 $ 626,651 $113,942 $ 703 $3,606
======== ======== ========= ======== ===== ======
Investments in respective Funds, at net asset value. $604,933 $218,342 $ 468,824 $100,039 $ 675 $3,499
Amount due from MONY ............................... 10 11 26 10 0 0
Amount due from respective Funds.................... 110 9 432 20 0 0
-------- -------- --------- -------- ----- ------
Total assets................................. 605,053 218,362 469,282 100,069 675 3,499
-------- -------- --------- -------- ----- ------
LIABILITIES
Amount due to MONY.................................. 1,372 488 1,503 717 1 8
Amount due to respective Funds...................... 10 11 26 10 0 0
-------- -------- --------- -------- ----- ------
Total liabilities............................ 1,382 499 1,529 727 1 8
-------- -------- --------- -------- ----- ------
Net assets.......................................... $603,671 $217,863 $ 467,753 $ 99,342 $ 674 $3,491
======== ======== ========= ======== ===== ======
Net assets consist of:
Contractholders' net payments...................... $590,250 $325,150 $ 649,084 $123,274 $ 702 $3,847
Undistributed net investment income (loss)......... 163,843 3,121 (2,274) 2,387 0 7
Accumulated net realized loss on investments....... (59,219) (51,825) (21,230) (12,416) 0 (256)
Net unrealized depreciation of investments......... (91,203) (58,583) (157,827) (13,903) (28) (107)
-------- -------- --------- -------- ----- ------
Net assets.......................................... $603,671 $217,863 $ 467,753 $ 99,342 $ 674 $3,491
======== ======== ========= ======== ===== ======
Number of units outstanding*........................ 50,561 30,047 64,554 13,433 76 389
======== ======== ========= ======== ===== ======
Net asset value per unit outstanding*............... $ 11.94 $ 7.25 $ 7.25 $ 7.40 $8.82 $ 8.96
======== ======== ========= ======== ===== ======
- ----------
* Units outstanding have been rounded for presentation purposes.
** Amounts round to less than one.
See notes to financial statements.
F-98
MONYEquity Master
- ------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust Fidelity Variable Insurance Products Funds
- ------------------------------------------ -----------------------------------------
Dreyfus
Small Dreyfus Socially VIP III
Multi-Cap Company Mid-Cap Worldwide Stock Responsible VIP VIP II Growth
Growth Growth Growth Growth Index Growth Growth Contrafund Opportunities
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ---------- ---------- ---------- ----------- ---------- ---------- -------------
863 981 2,087 54 6,271 67 6,729 6,330 138
======= ====== ======= ===== ======== ====== ======== ======== ======
$ 7,086 $7,387 $16,079 $ 482 $197,113 $1,662 $254,392 $136,123 $2,201
======= ====== ======= ===== ======== ====== ======== ======== ======
$ 5,797 $6,612 $12,910 $ 435 $158,772 $1,474 $181,958 $125,269 $1,792
0 90 0 0 18 0 32 0 0
0 90 0 0 220 0 414 0 0
------- ------ ------- ----- -------- ------ -------- -------- ------
5,797 6,792 12,910 435 159,010 1,474 182,404 125,269 1,792
------- ------ ------- ----- -------- ------ -------- -------- ------
11 102 30 1 374 2 744 252 4
0 90 0 0 18 0 32 0 0
------- ------ ------- ----- -------- ------ -------- -------- ------
11 192 30 1 374 2 744 252 4
------- ------ ------- ----- -------- ------ -------- -------- ------
$ 5,786 $6,600 $12,880 $ 434 $158,636 $1,472 $181,660 $125,017 $1,788
======= ====== ======= ===== ======== ====== ======== ======== ======
$ 7,270 $7,337 $16,161 $ 485 $208,277 $1,683 $286,112 $142,196 $2,218
(32) 80 (60) (3) 3,160 (3) 9,958 2,129 1
(163) (42) (52) (1) (14,460) (20) (41,976) (8,454) (22)
(1,289) (775) (3,169) (47) (38,341) (188) (72,434) (10,854) (409)
------- ------ ------- ----- -------- ------ -------- -------- ------
$ 5,786 $6,600 $12,880 $ 434 $158,636 $1,472 $181,660 $125,017 $1,788
======= ====== ======= ===== ======== ====== ======== ======== ======
834 737 1,696 49 23,138 208 30,098 15,419 223
======= ====== ======= ===== ======== ====== ======== ======== ======
$ 6.94 $ 8.96 $ 7.60 $8.92 $ 6.86 $ 7.07 $ 6.04 $ 8.11 $ 8.01
======= ====== ======= ===== ======== ====== ======== ======== ======
F-99
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
June 30, 2002 (unaudited)
MONYEquity Master
----------------------------------------------------------
Janus Aspen Series
----------------------------------------------------------
Aggressive Capital Worldwide
Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Total
---------- ---------- ------------ ---------- ------------
ASSETS
Shares held in respective Funds...................... 145 666 13,404 9,353
====== ======= ======== ========
Investments at cost.................................. $3,417 $15,608 $340,194 $301,684 $ 32,522,871
====== ======= ======== ======== ============
Investments in respective Funds, at net asset value . $2,583 $14,416 $258,129 $231,692 $ 22,054,377
Amount due from MONY................................. 0 0 30 21 3,168
Amount due from respective Funds..................... 0 0 20 228 2,326
------ ------- -------- -------- ------------
Total assets.................................. 2,583 14,416 258,179 231,941 22,060,854
------ ------- -------- -------- ------------
LIABILITIES
Amount due to MONY................................... 7 29 538 714 51,847
Amount due to respective Funds....................... 0 0 30 21 3,168
------ ------- -------- -------- ------------
Total liabilities............................. 7 29 538 714 55,015
------ ------- -------- -------- ------------
Net assets........................................... $2,576 $14,387 $257,641 $231,227 $ 22,005,839
====== ======= ======== ======== ============
Net assets consist of:
Contractholders' net payments....................... $3,592 $15,223 $374,966 $357,609 $ 26,074,711
Undistributed net investment income (loss).......... (20) 424 3,102 7,775 11,154,000
Accumulated net realized loss on investments........ (162) (68) (38,362) (64,165) (4,754,378)
Net unrealized depreciation of investments.......... (834) (1,192) (82,065) (69,992) (10,468,494)
------ ------- -------- -------- ------------
Net assets........................................... $2,576 $14,387 $257,641 $231,227 $ 22,005,839
====== ======= ======== ======== ============
Number of units outstanding*......................... 398 1,524 42,971 43,133
====== ======= ======== ========
Net asset value per unit outstanding*................ $ 6.47 $ 9.44 $ 6.00 $ 5.36
====== ======= ======== ========
- ----------
* Units outstanding have been rounded for presentation purposes.
** Amounts round to less than one.
See notes to financial statements.
F-100
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-101
MONY
Variable Account L
STATEMENT OF OPERATIONS
June 30, 2002 (unaudited)
Strategist
-----------------------------------------------------------------------------
MONY Series Fund, Inc.
-----------------------------------------------------------------------------
Equity Equity Intermediate Long Term Money
Growth Income Term Bond Bond Diversified Market
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
---------- ---------- ------------ ---------- ----------- ---------- --------
Dividend income............... $ 328 $ 4,605 $306 $ 714 $ 11,452 $ 302 $ 17,707
Distribution from net
realized gains.............. 0 0 0 0 0 0 0
Mortality and expense risk
charges..................... (183) (133) (23) (45) (251) (118) (753)
------- ------- ---- ----- -------- ----- --------
Net investment income......... 145 4,472 283 669 11,201 184 16,954
------- ------- ---- ----- -------- ----- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ (2,950) (933) 20 64 (826) 0 (4,625)
Net change in unrealized
appreciation
(depreciation) of
investments................ (6,123) (5,936) (86) (362) (18,214) 0 (30,721)
------- ------- ---- ----- -------- ----- --------
Net realized and unrealized
gain (loss) on investments.. (9,073) (6,869) (66) (298) (19,040) 0 (35,346)
------- ------- ---- ----- -------- ----- --------
Net increase (decrease) in
net assets resulting from
operations.................. $(8,928) $(2,397) $217 $ 371 $ (7,839) $ 184 $(18,392)
======= ======= ==== ===== ======== ===== ========
See notes to financial statements.
F-102
MONYEquity Master
- --------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
- -------------------------------------------- ----------------------------------------------------
Government Intermediate Long Term Money Small Company International
Securities Term Bond Bond Market Equity Value Managed Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ------------ ---------- ---------- ----------- ------------- ----------- -------------
$ 7,121 $ 5,172 $13,869 $ 3,988 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0 0 0 0
(847) (494) (1,109) (1,937) (22,396) (16,942) (30,453) (4,431)
------- ------- ------- ------- ----------- --------- ----------- --------
6,274 4,678 12,760 2,051 (22,396) (16,942) (30,453) (4,431)
------- ------- ------- ------- ----------- --------- ----------- --------
949 429 1,227 0 (561,451) (150,152) (561,541) (71,973)
(1,966) (1,300) (6,737) 0 (901,025) 278,165 (845,714) 78,080
------- ------- ------- ------- ----------- --------- ----------- --------
(1,017) (871) (5,510) 0 (1,462,476) 128,013 (1,407,255) 6,107
------- ------- ------- ------- ----------- --------- ----------- --------
$ 5,257 $ 3,807 $ 7,250 $ 2,051 $(1,484,872) $ 111,071 $(1,437,708) $ 1,676
======= ======= ======= ======= =========== ========= =========== ========
F-103
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
June 30, 2002 (unaudited)
MONYEquity Master
--------------------------------------------------------------------------------------
Enterprise
Accumulation Trust Fidelity Variable Insurance Products Funds
-------------------- -----------------------------------------
Dreyfus
Dreyfus Socially VIP III
High Yield Stock Responsible VIP VIP II Growth
Bond Growth Index Growth Growth Contrafund Opportunities
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ----------- ---------- ---------- -------------
Dividend income.......................... $ 25,675 $ 0 $ 468 $ 0 $ 246 $ 804 $ 15
Distribution from net realized gains..... 0 0 0 0 0 0 0
Mortality and expense risk charges....... (2,250) (872) (391) (2) (613) (443) (7)
-------- -------- -------- ----- -------- ------- -----
Net investment income (loss)............. 23,425 (872) 77 (2) (367) 361 8
-------- -------- -------- ----- -------- ------- -----
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments. (7,078) (3,266) (4,211) (11) (13,474) (2,089) (12)
Net change in unrealized appreciation
(depreciation) of investments......... (33,793) (31,874) (20,627) (180) (28,812) 3 (269)
-------- -------- -------- ----- -------- ------- -----
Net realized and unrealized loss on
investments............................ (40,871) (35,140) (24,838) (191) (42,286) (2,086) (281)
-------- -------- -------- ----- -------- ------- -----
Net decrease in net assets resulting from
operations............................. $(17,446) $(36,012) $(24,761) $(193) $(42,653) $(1,725) $(273)
======== ======== ======== ===== ======== ======= =====
See notes to financial statements.
F-104
MONYEquity Master
- ------------------------------------------------------------------------------------------
Janus Aspen Series Enterprise Accumulation Trust
- -------------------------------------------- --------------------------------------------
Growth
Aggressive Capital Worldwide and Capital Equity
Growth Balanced Appreciation Growth Income Appreciation Balanced Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ------------ ---------- ---------- ------------ ---------- ----------
$ 0 $ 165 $ 937 $ 934 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0 0 0 0
(11) (53) (773) (877) (1,946) (848) 0 (10)
----- ----- -------- -------- -------- ------- ---- -----
(11) 112 164 57 (1,946) (848) 0 (10)
----- ----- -------- -------- -------- ------- ---- -----
(119) (9) (14,300) (15,807) (10,375) (2,809) 0 5
(517) (631) (5,171) (18,444) (77,472) 2,919 (28) (207)
----- ----- -------- -------- -------- ------- ---- -----
(636) (640) (19,471) (34,251) (87,847) 110 (28) (202)
----- ----- -------- -------- -------- ------- ---- -----
$(647) $(528) $(19,307) $(34,194) $(89,793) $ (738) $(28) $(212)
===== ===== ======== ======== ======== ======= ==== =====
F-105
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
June 30, 2002 (unaudited)
MONYEquity Master
-------------------------------------------------------
Enterprise Accumulation Trust
-------------------------------------------------------
Small
Multi-Cap Company Mid-Cap Worldwide
Growth Growth Growth Growth
Subaccount Subaccount Subaccount Subaccount Total
---------- ---------- ---------- ---------- -----------
Dividend income.................................................. $ 0 $ 0 $ 0 $ 0 $ 59,394
Distribution from net realized gains............................. 0 0 0 0 0
Mortality and expense risk charges............................... (19) (20) (53) (2) (87,799)
------- ----- ------- ---- -----------
Net investment loss.............................................. (19) (20) (53) (2) (28,405)
------- ----- ------- ---- -----------
Realized and unrealized loss on investments:
Net realized loss on investments............................... (122) (24) (34) (1) (1,416,248)
Net change in unrealized depreciation of investments........... (1,155) (883) (3,039) (47) (1,620,724)
------- ----- ------- ---- -----------
Net realized and unrealized loss on investments.................. (1,277) (907) (3,073) (48) (3,036,972)
------- ----- ------- ---- -----------
Net decrease in net assets resulting from operations............. $(1,296) $(927) $(3,126) $(50) $(3,065,377)
======= ===== ======= ==== ===========
- ----------
** Commencement of operations
See notes to financial statements.
F-106
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-107
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
Strategist
-------------------------------------------------
MONY Series Fund, Inc.
-------------------------------------------------
Equity Growth Equity Income
Subaccount Subaccount
----------------------- -----------------------
For the six For the six
months For the year months For the year
ended ended ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
----------- ------------ ----------- ------------
(unaudited) (unaudited)
From operations:
Net Investment income................................... $ 145 $ 39,337 $ 4,472 $ 4,823
Net realized gain (loss) on investments................. (2,950) (42,503) (933) (5,128)
Net change in unrealized appreciation (depreciation) of
investments............................................ (6,123) (14,629) (5,936) (5,340)
------- -------- ------- -------
Net increase (decrease) in net assets resulting from
operations............................................... (8,928) (17,795) (2,397) (5,645)
------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of units................. 19,609 10,837 10,759 9,400
Net asset value of units redeemed or used to meet
contract obligations................................... (2,226) (37,289) (1,817) (9,050)
------- -------- ------- -------
Net increase (decrease) from unit transactions............ 17,383 (26,452) 8,942 350
------- -------- ------- -------
Net increase (decrease) in net assets..................... 8,455 (44,247) 6,545 (5,295)
Net assets beginning of period............................ 57,261 101,508 40,942 46,237
------- -------- ------- -------
Net assets end of period*................................. $65,716 $ 57,261 $47,487 $40,942
======= ======== ======= =======
Unit transactions:
Units outstanding beginning of period..................... 1,054 1,498 815 815
Units issued during the period............................ 373 189 210 185
Units redeemed during the period.......................... (47) (633) (38) (185)
------- -------- ------- -------
Units outstanding end of period........................... 1,380 1,054 987 815
======= ======== ======= =======
- ----------
*Includes undistributed net investment income of: $99,811 $ 99,666 $44,969 $40,497
======= ======== ======= =======
Intermediate Term Bond
Subaccount
-----------------------
For the six
months For the year
ended ended
June 30, December 31,
2002 2001
----------- ------------
(unaudited)
From operations:
Net Investment income................................... $ 283 $ 358
Net realized gain (loss) on investments................. 20 27
Net change in unrealized appreciation (depreciation) of
investments............................................ (86) 194
------- -------
Net increase (decrease) in net assets resulting from
operations............................................... 217 579
------- -------
From unit transactions:
Net proceeds from the issuance of units................. 204 407
Net asset value of units redeemed or used to meet
contract obligations................................... (309) (684)
------- -------
Net increase (decrease) from unit transactions............ (105) (277)
------- -------
Net increase (decrease) in net assets..................... 112 302
Net assets beginning of period............................ 7,756 7,454
------- -------
Net assets end of period*................................. $ 7,868 $ 7,756
======= =======
Unit transactions:
Units outstanding beginning of period..................... 295 306
Units issued during the period............................ 8 16
Units redeemed during the period.......................... (12) (27)
------- -------
Units outstanding end of period........................... 291 295
======= =======
- ----------
*Includes undistributed net investment income of: $10,811 $10,528
======= =======
See notes to financial statements.
F-108
Strategist
- --------------------------------------------------------------------------------------------------
MONY Series Fund, Inc.
- --------------------------------------------------------------------------------------------------
Long Term Bond Diversified Money Market
Subaccount Subaccount Subaccount Total
- ----------------------- ----------------------- ----------------------- -----------------------
For the six For the six For the six For the six
months For the year months For the year months For the year months For the year
ended ended ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 669 $ 707 $ 11,201 $ 25,714 $ 184 $ 1,132 $ 16,954 $ 72,071
64 140 (826) (771) 0 0 (4,625) (48,235)
(362) 0 (18,214) (42,095) 0 0 (30,721) (61,870)
------- ------- -------- -------- -------- ------- -------- --------
371 847 (7,839) (17,152) 184 1,132 (18,392) (38,034)
------- ------- -------- -------- -------- ------- -------- --------
344 695 843 1,816 130 26,387 31,889 49,542
(527) (1,469) (1,510) (4,976) (27,597) (3,158) (33,986) (56,626)
------- ------- -------- -------- -------- ------- -------- --------
(183) (774) (667) (3,160) (27,467) 23,229 (2,097) (7,084)
------- ------- -------- -------- -------- ------- -------- --------
188 73 (8,506) (20,312) (27,283) 24,361 (20,489) (45,118)
15,226 15,153 87,779 108,091 46,049 21,688 255,013 300,131
------- ------- -------- -------- -------- ------- -------- --------
$15,414 $15,226 $ 79,273 $ 87,779 $ 18,766 $46,049 $234,524 $255,013
======= ======= ======== ======== ======== ======= ======== ========
478 503 2,071 2,144 2,246 1,091
11 22 22 41 6 1,312
(16) (47) (38) (114) (1,341) (157)
------- ------- -------- -------- -------- -------
473 478 2,055 2,071 911 2,246
======= ======= ======== ======== ======== =======
$30,493 $29,824 $109,745 $ 98,544 $ 30,122 $29,938 $325,951 $308,997
======= ======= ======== ======== ======== ======= ======== ========
F-109
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
-------------------------------------------------
MONY Series Fund, Inc.
-------------------------------------------------
Government Intermediate Term
Securities Bond
Subaccount Subaccount
----------------------- -----------------------
For the six For the six
months For the year months For the year
ended ended ended ended
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
----------- ------------ ----------- ------------
(unaudited) (unaudited)
From operations:
Net investment income................................... $ 6,274 $ 7,101 $ 4,678 $ 4,146
Net realized gain (loss) on investments................. 949 1,848 429 373
Net change in unrealized appreciation (depreciation) of
investments............................................ (1,966) 1,700 (1,300) 2,572
-------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations............................................... 5,257 10,649 3,807 7,091
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units................. 46,302 80,538 31,051 41,738
Net asset value of units redeemed or used to meet
contract obligations................................... (22,389) (43,706) (12,007) (15,441)
-------- -------- -------- --------
Net increase from unit transactions....................... 23,913 36,832 19,044 26,297
-------- -------- -------- --------
Net increase (decrease) in net assets..................... 29,170 47,481 22,851 33,388
Net assets beginning of period............................ 218,069 170,588 119,482 86,094
-------- -------- -------- --------
Net assets end of period*................................. $247,239 $218,069 $142,333 $119,482
======== ======== ======== ========
Unit transactions:
Units outstanding beginning of period..................... 16,863 13,956 9,128 7,085
Units issued during the period............................ 3,534 6,354 2,345 3,258
Units redeemed during the period.......................... (1,694) (3,447) (893) (1,215)
-------- -------- -------- --------
Units outstanding end of period........................... 18,703 16,863 10,580 9,128
======== ======== ======== ========
- ----------
*Includes undistributed net investment income of: $ 22,350 $ 16,076 $ 13,506 $ 8,828
======== ======== ======== ========
Long Term
Bond
Subaccount
-----------------------
For the six
months For the year
ended ended
June 30, December 31,
2002 2001
----------- ------------
(unaudited)
From operations:
Net investment income................................... $ 12,760 $ 11,265
Net realized gain (loss) on investments................. 1,227 3,331
Net change in unrealized appreciation (depreciation) of
investments............................................ (6,737) (686)
-------- --------
Net increase (decrease) in net assets resulting from
operations............................................... 7,250 13,910
-------- --------
From unit transactions:
Net proceeds from the issuance of units................. 37,618 86,596
Net asset value of units redeemed or used to meet
contract obligations................................... (20,185) (52,289)
-------- --------
Net increase from unit transactions....................... 17,433 34,307
-------- --------
Net increase (decrease) in net assets..................... 24,683 48,217
Net assets beginning of period............................ 291,985 243,768
-------- --------
Net assets end of period*................................. $316,668 $291,985
======== ========
Unit transactions:
Units outstanding beginning of period..................... 21,528 18,963
Units issued during the period............................ 2,729 6,605
Units redeemed during the period.......................... (1,453) (4,040)
-------- --------
Units outstanding end of period........................... 22,804 21,528
======== ========
- ----------
*Includes undistributed net investment income of: $ 45,464 $ 32,704
======== ========
See notes to financial statements.
F-110
MONYEquity Master
- -----------------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- -----------------------------------------------------------------------------------------------------------------------------
Money Small Company International
Market Equity Value Managed Growth
Subaccount Subaccount Subaccount Subaccount Subaccount
- ----------------------- ------------------------ ----------------------- ------------------------ -----------------------
For the six For the six For the six For the six For the six
months For the year months For the year months For the year months For the year months For the year
ended ended ended ended ended ended ended ended ended ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
$ 2,051 $ 12,101 $ (22,396) $ 1,065,812 $ (16,942) $1,043,032 $ (30,453) $ 570,036 $ (4,431) $ 128,013
0 0 (561,451) (863,163) (150,152) (200,237) (561,541) (1,347,132) (71,973) (98,675)
0 0 (901,025) (1,586,564) 278,165 (673,717) (845,714) (296,366) 78,080 (445,255)
-------- --------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
2,051 12,101 (1,484,872) (1,383,915) 111,071 169,078 (1,437,708) (1,073,462) 1,676 (415,917)
-------- --------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
87,114 227,921 766,992 1,703,994 475,826 1,037,221 946,714 2,046,956 182,576 432,230
(34,029) (110,374) (472,738) (969,103) (355,234) (572,189) (730,793) (1,270,158) (96,260) (234,412)
-------- --------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
53,085 117,547 294,254 734,891 120,592 465,032 215,921 776,798 86,316 197,818
-------- --------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
55,136 129,648 (1,190,618) (649,024) 231,663 634,110 (1,221,787) (296,664) 87,992 (218,099)
503,230 373,582 6,370,050 7,019,074 4,338,798 3,704,688 8,562,014 8,858,678 1,170,224 1,388,323
-------- --------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
$558,366 $ 503,230 $ 5,179,432 $ 6,370,050 $4,570,461 $4,338,798 $ 7,340,227 $ 8,562,014 $1,258,216 $1,170,224
======== ========= =========== =========== ========== ========== =========== =========== ========== ==========
40,522 30,993 532,023 472,274 204,616 182,442 631,443 575,976 117,820 100,108
6,993 18,556 77,079 139,694 21,922 50,013 80,859 146,154 18,417 39,323
(2,729) (9,027) (50,942) (79,945) (16,340) (27,839) (64,501) (90,687) (9,684) (21,611)
-------- --------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
44,786 40,522 558,160 532,023 210,198 204,616 647,801 631,443 126,553 117,820
======== ========= =========== =========== ========== ========== =========== =========== ========== ==========
$ 64,737 $ 62,686 $ 3,553,113 $ 3,575,509 $1,902,830 $1,919,772 $ 5,064,684 $ 5,095,137 $ 293,721 $ 298,152
======== ========= =========== =========== ========== ========== =========== =========== ========== ==========
F-111
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
-------------------------------------------------------------------------
Enterprise Accumulation Trust
-------------------------------------------------------------------------
High Yield Bond Growth Growth and Income
Subaccount Subaccount Subaccount
----------------------- ----------------------- -----------------------
For the For the For the
six months For the six months For the year six months For the
ended year ended ended ended ended year ended
June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001
----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited)
From operations:
Net investment income (loss). $ 23,425 $ 46,007 $ (872) $ (575) $ (1,946) $ 769
Net realized gain (loss) on
investments................ (7,078) (18,199) (3,266) (4,515) (10,375) (10,658)
Net change in unrealized
appreciation (depreciation)
of investments............... (33,793) (1,547) (31,874) (22,821) (77,472) (65,635)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets resulting from
operations................... (17,446) 26,261 (36,012) (27,911) (89,793) (75,524)
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 61,356 145,404 25,015 81,619 38,624 131,912
Net asset value of units
redeemed or used to meet
contract obligations....... (37,902) (82,820) (13,646) (19,913) (42,282) (71,399)
-------- -------- -------- -------- -------- --------
Net increase from unit
transactions................. 23,454 62,584 11,369 61,706 (3,658) 60,513
-------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets................... 6,008 88,845 (24,643) 33,795 (93,451) (15,011)
Net assets beginning of period 597,663 508,818 242,506 208,711 561,204 576,215
-------- -------- -------- -------- -------- --------
Net assets end of period*..... $603,671 $597,663 $217,863 $242,506 $467,753 $561,204
======== ======== ======== ======== ======== ========
Unit transactions:
Units outstanding beginning
of period.................... 48,673 43,551 28,653 21,398 65,041 58,400
Units issued during the period 5,062 12,128 3,276 9,662 5,345 14,623
Units redeemed during the
period....................... (3,174) (7,006) (1,882) (2,407) (5,832) (7,982)
-------- -------- -------- -------- -------- --------
Units outstanding end of
period....................... 50,561 48,673 30,047 28,653 64,554 65,041
======== ======== ======== ======== ======== ========
- ----------
* Includes undistributed net
investment income (loss)
of: $163,843 $140,418 $ 3,121 $ 3,993 $ (2,274) $ (328)
======== ======== ======== ======== ======== ========
** Commencement of operations.
See notes to financial statements.
F-112
MONYEquity Master
- ---------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ---------------------------------------------------------------------------------------------------------
Capital Appreciation Balanced Equity Income Multi-Cap Growth
Subaccount Subaccount Subaccount Subaccount
- ----------------------- ----------------------- -------------------------- -------------------------
For the For the For the period For the For the period For the For the period
six months For the six months May 4, 2001** six months June 19, 2001** six months May 18, 2001**
ended year ended ended through ended through ended through
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- -------------- ----------- --------------- ----------- --------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ (848) $ (46) $ 0 $ 32 $ (10) $ 17 $ (19) $ (13)
(2,809) (9,362) 0 (239) 5 (261) (122) (41)
2,919 (9,232) (28) 0 (207) 100 (1155) (134)
------- -------- ---- ------- ------ ------- ------- ------
(738) (18,640) (28) (207) (212) (144) (1,296) (188)
------- -------- ---- ------- ------ ------- ------- ------
18,464 49,649 749 2,610 1,629 5,300 2,656 5,378
(7,276) (27,711) (47) (2,402) (85) (2,997) (585) (179)
------- -------- ---- ------- ------ ------- ------- ------
11,188 21,938 702 208 1,544 2,303 2,071 5,199
------- -------- ---- ------- ------ ------- ------- ------
10,450 3,298 674 1 1,332 2,159 775 5,011
88,892 85,594 1 0 2,159 0 5,011 0
------- -------- ---- ------- ------ ------- ------- ------
$99,342 $ 88,892 $675 $ 1 $3,491 $ 2,159 $ 5,786 $5,011
======= ======== ==== ======= ====== ======= ======= ======
11,976 9,254 0 0 231 0 572 0
2,440 6,340 81 263 167 556 346 594
(983) (3,618) (5) (263) (9) (325) (84) (22)
------- -------- ---- ------- ------ ------- ------- ------
13,433 11,976 76 0*** 389 231 834 572
======= ======== ==== ======= ====== ======= ======= ======
$ 2,387 $ 3,235 $ 0 $ 32 $ 7 $ 17 $ (32) $ (13)
======= ======== ==== ======= ====== ======= ======= ======
F-113
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
---------------------------------------------------------
Enterprise Accumulation Trust
---------------------------------------------------------
Small Company Growth Mid-Cap Growth
Subaccount Subaccount
--------------------------- ---------------------------
For the For the period For the For the period
six months August 8, 2001** six months August 8, 2001**
ended through ended through
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
----------- ---------------- ----------- ----------------
(unaudited) (unaudited)
From operations:
Net investment income (loss)................. $ (20) $ 100 $ (53) $ (7)
Net realized (loss) on investments........... (24) (18) (34) (18)
Net change in unrealized appreciation
(depreciation) of investments................. (883) 108 (3,039) (130)
------ ------ ------- ------
Net increase (decrease) in net assets resulting
from operations............................... (927) 190 (3,126) (155)
------ ------ ------- ------
From unit transactions:
Net proceeds from the issuance of units...... 3,110 4,941 12,624 3,876
Net asset value of units redeemed or used to
meet contract obligations................... (588) (126) (215) (124)
------ ------ ------- ------
Net increase from unit transactions............ 2,522 4,815 12,409 3,752
------ ------ ------- ------
Net increase (decrease) in net assets.......... 1,595 5,005 9,283 3,597
Net assets beginning of period................. 5,005 0 3,597 0
------ ------ ------- ------
Net assets end of period*...................... $6,600 $5,005 $12,880 $3,597
====== ====== ======= ======
Unit transactions:
Units outstanding beginning of period.......... 476 0 0 0
Units issued during the period................. 327 490 1,724 393
Units redeemed during the period............... (66) (14) (28) (14)
------ ------ ------- ------
Units outstanding end of period................ 737 476 1,696 379
====== ====== ======= ======
- ----------
*Includes undistributed net investment
income (loss) of: $ 80 $ 100 $ (60) $ (7)
====== ====== ======= ======
Worldwide Growth
Subaccount
------------------------
For the For the period
six months June 13, 2001**
ended through
June 30, December 31,
2002 2001
----------- ---------------
(unaudited)
From operations:
Net investment income (loss)................. $ (2) $ (2)
Net realized (loss) on investments........... (1) (1)
Net change in unrealized appreciation
(depreciation) of investments................. (47) (47)
---- ----
Net increase (decrease) in net assets resulting
from operations............................... (50) (50)
---- ----
From unit transactions:
Net proceeds from the issuance of units...... 504 1
Net asset value of units redeemed or used to
meet contract obligations................... (20) 0
---- ----
Net increase from unit transactions............ 484 1
---- ----
Net increase (decrease) in net assets.......... 434 0***
Net assets beginning of period................. 0 0
---- ----
Net assets end of period*...................... $434 $ 0***
==== ====
Unit transactions:
Units outstanding beginning of period.......... 0 0
Units issued during the period................. 51 0***
Units redeemed during the period............... (2) 0
---- ----
Units outstanding end of period................ 49 0***
==== ====
- ----------
*Includes undistributed net investment
income (loss) of: $ (3) $ (1)
==== ====
** Commencement of operations
***Amounts round to less than one
See notes to financial statements.
F-114
MONYEquity Master
- ----------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds
------------------------------------------------
Dreyfus
Dreyfus Socially Responsible
Stock Index Growth VIP Growth VIP I Contrafund
Subaccount Subaccount Subaccount Subaccount
- ----------------------- ------------------------- ----------------------- -----------------------
For the six For the For the period For the For the
months For the year six months May 15, 2001** six months For the six months For the
ended ended ended through ended year ended ended year ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- ------------ ----------- -------------- ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 77 $ 1,376 $ (2) $ (1) $ (367) $ 10,867 $ 361 $ 2,023
(4,211) (9,710) (11) (9) (13,474) (28,799) (2,089) (6,246)
(20,627) (8,258) (180) (8) (28,812) (18,560) 3 (7,106)
-------- -------- ------ ---- -------- -------- -------- --------
(24,761) (16,592) (193) (18) (42,653) (36,492) (1,725) (11,329)
-------- -------- ------ ---- -------- -------- -------- --------
38,428 103,848 1,416 469 46,633 109,238 21,034 66,691
(12,051) (35,305) (125) (77) (22,728) (54,494) (8,081) (23,568)
-------- -------- ------ ---- -------- -------- -------- --------
26,377 68,543 1,291 392 23,905 54,744 12,953 43,123
-------- -------- ------ ---- -------- -------- -------- --------
1,616 51,951 1,098 374 (18,748) 18,252 11,228 31,794
157,020 105,069 0 0 200,408 182,156 113,789 81,995
-------- -------- ------ ---- -------- -------- -------- --------
$158,636 $157,020 $1,098 $374 $181,660 $200,408 $125,017 $113,789
======== ======== ====== ==== ======== ======== ======== ========
19,709 11,492 44 0 26,701 19,810 13,866 8,689
5,188 12,533 147 53 7,160 13,854 2,549 8,027
(1,759) (4,316) 17 (9) (3,763) (6,963) (996) (2,850)
-------- -------- ------ ---- -------- -------- -------- --------
23,138 19,709 208 44 30,098 26,701 15,419 13,866
======== ======== ====== ==== ======== ======== ======== ========
$ 3,160 $ 3,083 $ (3) $ (1) $ 9,958 $ 10,325 $ 2,129 $ 1,768
======== ======== ====== ==== ======== ======== ======== ========
See notes to financial statements.
F-115
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
------------------------------------------------------
Fidelity Variable Insurance
Products Funds Janus Aspen Series
--------------------------- -------------------------
VIP III Growth Opportunities Aggressive Growth
Subaccount Subaccount
--------------------------- -------------------------
For the For the period For the For the period
six months May 15, 2001** six months May 15, 2001**
ended through ended through
June 30, December 31, June 30, December 31,
2002 2001 2002 2001
----------- -------------- ----------- --------------
(unaudited) (unaudited)
From operations:
Net investment income (loss)........................................... $ 8 $ (7) $ (11) $ (9)
Net realized loss on investments....................................... (12) (10) (119) (43)
Net change in unrealized depreciation of investments..................... (269) (140) (517) (317)
------ ------ ------ ------
Net decrease in net assets resulting from operations..................... (273) (157) (647) (369)
------ ------ ------ ------
From unit transactions:
Net proceeds from the issuance of units................................ 294 2,088 270 3,879
Net asset value of units redeemed or used to meet contract obligations. (76) (88) (371) (186)
------ ------ ------ ------
Net increase (decrease) from unit transactions........................... 218 2,000 (101) 3,693
------ ------ ------ ------
Net increase (decrease) in net assets.................................... (55) 1,843 (748) 3,324
Net assets beginning of period........................................... 1,843 0 3,324 0
------ ------ ------ ------
Net assets end of period*................................................ $1,788 $1,843 $2,576 $3,324
====== ====== ====== ======
Unit transactions:
Units outstanding beginning of period.................................... 199 0 413 0
Units issued during the period........................................... 33 208 42 437
Units redeemed during the period......................................... (9) (9) (57) (24)
------ ------ ------ ------
Units outstanding end of period.......................................... 223 199 398 413
====== ====== ====== ======
- ----------
*Includes undistributed net investment income (loss) of: $ 1 $ (7) $ (20) $ (9)
====== ====== ====== ======
** Commencement of operations.
See notes to financial statements.
F-116
MONYEquity Master
- ------------------------------------------------------------------------------------------------------
Janus Aspen Series
- ------------------------------------------------------------------------------------------------------
Balanced Capital Appreciation Worldwide Growth
Subaccount Subaccount Subaccount Total
- -------------------------- ----------------------- ----------------------- ------------------------
For the For the period For the For the For the
six months June 13, 2001** six months For the six months For the year six months For the
ended through ended year ended ended ended ended year ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2002 2001 2002 2001 2002 2001 2002 2001
- ----------- --------------- ----------- ------------ ----------- ------------ ----------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
$ 112 $ 312 $ 164 $ 1,386 $ 57 $ (469) $ (28,405) $ 2,903,266
(9) (59) (14,300) (23,108) (15,807) (45,597) (1,416,248) (2,660,548)
(631) (561) (5,171) (36,977) (18,444) (9,729) (1,620,724) (3,179,310)
------- ------- -------- -------- -------- -------- ----------- -----------
(528) (308) (19,307) (58,699) (34,194) (55,795) (3,065,377) (2,936,592)
------- ------- -------- -------- -------- -------- ----------- -----------
1,001 14,889 43,860 126,828 52,450 150,378 2,944,310 6,666,192
(134) (533) (24,941) (50,973) (25,508) (68,469) (1,940,296) (3,709,036)
------- ------- -------- -------- -------- -------- ----------- -----------
867 14,356 18,919 75,855 26,942 81,909 1,004,014 2,957,156
------- ------- -------- -------- -------- -------- ----------- -----------
339 14,048 (388) 17,156 (7,252) 26,114 (2,061,363) 20,613
14,048 0 258,029 240,873 238,479 212,365 24,067,204 24,046,591
------- ------- -------- -------- -------- -------- ----------- -----------
$14,387 $14,048 $257,641 $258,029 $231,227 $238,479 $22,005,841 $24,067,204
======= ======= ======== ======== ======== ======== =========== ===========
1,435 0 39,919 28,955 38,546 26,409
103 1,491 7,209 18,374 9,346 22,493
(14) (56) (4,157) (7,410) (4,759) (10,356)
------- ------- -------- -------- -------- --------
1,524 1,435 42,971 39,919 43,133 38,546
======= ======= ======== ======== ======== ========
$ 424 $ 312 $ 3,102 $ 2,938 $ 7,775 $ 7,718 11,154,000 11,182,437
======= ======= ======== ======== ======== ======== =========== ===========
F-117
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance policies (Strategist) and Variable
Universal Life Insurance policies (MONYEquity Master, MONY Custom Equity Master
and MONY Custom Estate Master), MONY Variable Universal Life and MONY
Survivorship Variable Universal Life. These policies are issued by MONY. For
presentation purposes, the information related to the Variable Life
(Strategist) and Variable Universal Life (MONYEquity Master) Insurance policies
is presented here.
There are currently six Strategist subaccounts and twenty-seven MONYEquity
Master subaccounts within the Variable Account each of which invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund"), the
Enterprise Accumulation Trust ("Enterprise"), Dreyfus Stock Index Fund, Dreyfus
Socially Responsible Growth Fund, Inc., Fidelity Variable Insurance Products
Funds, or Janus Aspen Series (collectively, the "Funds"). The Funds are
registered under the 1940 Act as open-end, diversified, management investment
companies. The Fund and Enterprise are affiliated with MONY.
These financial statements should be read in conjunction with the financial
statements and footnotes of the Funds, which were distributed by MONY to the
policyholders.
2. Significant Accounting Policies:
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the Money Market Portfolio, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income and
distributions of net realized gains are recorded on the ex-dividend date.
Investment income includes dividends from net investment income and
distributions of net realized gains received from the respective portfolios of
the Funds. Dividends and distributions received are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for Federal
income tax purposes.
F-118
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
3. Related Party Transactions:
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for such purposes from all
Strategist and MONYEquity Master subaccounts for the six months ended June 30,
2002 aggregated $1,678,967.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60% (for each of the Strategist
Subaccounts) and 0.75% (for each of the MONYEquity Master Subaccounts) of the
average daily net assets of the respective subaccounts. As MONY Life Insurance
Company of America, a wholly-owned subsidiary of MONY, acts as investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the period ended June
30, 2002, MONY received $839 in aggregate from certain Funds in connection with
Strategist and MONYEquity Master subaccounts.
4. Investment Transactions:
Cost of shares acquired and proceeds from shares redeemed by each subaccount
during the six months ended June 30, 2002 were as follows:
Cost of Shares Proceeds
Acquired from
(Excludes Shares
Strategist Subaccounts Reinvestments) Redeemed
---------------------- -------------- --------
MONY Series Fund, Inc.
Equity Growth Portfolio......... $ 94,109 $ 2,174
Equity Income Portfolio......... 57,688 1,726
Intermediate Term Bond Portfolio 7,259 335
Long Term Bond Portfolio........ 13,517 560
Diversified Portfolio........... 124,357 1,788
Money Market Portfolio.......... 18,643 27,701
MONYEquity Master Subaccounts
-----------------------------
MONY Series Fund, Inc.
Government Securities Portfolio. 236,052 12,428
Intermediate Term Bond Portfolio 134,192 18,185
Long Term Bond Portfolio........ 294,476 22,843
Money Market Portfolio.......... 555,132 33,370
F-119
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. Investment Transactions: (continued)
Cost of Shares Proceeds
Acquired from
(Excludes Shares
MONYEquity Master Subaccounts Reinvestments) Redeemed
----------------------------- -------------- --------
Enterprise Accumulation Trust
Equity Portfolio.............................. $ 9,941,128 $467,251
Small Company Value Portfolio................. 5,471,809 361,052
Managed Portfolio............................. 11,243,156 736,687
International Growth Portfolio................ 1,822,655 95,037
High Yield Bond Portfolio..................... 668,717 37,873
Growth Portfolio.............................. 278,337 14,823
Growth and Income Portfolio................... 634,989 44,324
Capital Appreciation Portfolio................ 115,275 7,634
Balanced Portfolio............................ 702 0
Equity Income Portfolio....................... 3,607 82
Multi-Cap Growth Portfolio.................... 7,195 548
Small Company Growth Portfolio................ 7,498 612
Mid-Cap Growth Portfolio...................... 16,120 222
Worldwide Growth Portfolio.................... 487 22
Dreyfus
Dreyfus Stock Index Fund...................... 197,718 12,019
Dreyfus Socially Responsible Growth Fund, Inc. 1,672 73
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 256,427 22,856
VIP II Contrafund Portfolio................... 135,828 8,326
VIP III Growth Opportunities Portfolio........ 2,200 83
Janus Aspen Series
Aggressive Growth Portfolio................... 3,462 382
Balanced Portfolio............................ 15,306 193
Capital Appreciation Portfolio................ 340,203 24,681
Worldwide Growth Portfolio.................... 302,087 25,276
F-120
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
5. Financial Highlights:
For a unit outstanding through the period ended December 31, 2001:
At December 31, 2001 For the period ended December 31, 2001
--------------------------- ----------------------------------
Net Investment
Unit Assets Income Expense Total
Strategist Subaccounts Units Values (000s) Ratio* Ratio** Return***
- ---------------------- ------- ------ ------ ---------- ------- ---------
MONY Series Fund, Inc.
Equity Growth Subaccount........... 1,054 $54.34 $ 57 0.00% 0.60% (19.79)%
Equity Income Subaccount........... 815 $50.21 41 1.72 0.60 (11.52)
Intermediate Term Bond Subaccount.. 295 $26.31 8 5.27 0.60 7.87
Long Term Bond Subaccount.......... 478 $31.82 15 5.20 0.60 5.68
Diversified Subaccount............. 2,071 $42.39 88 1.14 0.60 (15.93)
Money Market Subaccount............ 2,246 $20.50 46 3.53 0.60 3.17
MONYEquity Master Subaccounts
- -----------------------------
MONY Series Fund, Inc.
Government Securities Subaccount... 16,863 $12.93 218 4.37 0.75 5.81
Intermediate Term Bond Subaccount.. 9,128 $13.09 119 4.85 0.75 7.74
Long Term Bond Subaccount.......... 21,528 $13.56 292 4.95 0.75 5.53
Money Market Subaccount............ 40,522 $12.42 503 3.60 0.75 3.07
Enterprise Accumulation Trust
Equity Subaccount.................. 532,023 $11.97 6,370 0.00 0.75 (19.45)
Small Company Value Subaccount..... 204,616 $21.20 4,339 0.26 0.75 4.33
Managed Subaccount................. 631,443 $13.56 8,562 2.20 0.75 (11.83)
International Growth Subaccount.... 117,820 $ 9.93 1,170 0.68 0.75 (28.41)
High Yield Bond Subaccount......... 48,673 $12.28 598 8.93 0.75 5.14
Growth Subaccount.................. 28,653 $ 8.46 243 0.48 0.75 (13.23)
Growth and Income Subaccount....... 65,041 $ 8.63 561 0.89 0.75 (12.56)
Capital Appreciation Subaccount.... 11,976 $ 7.42 89 0.70 0.75 (19.78)
Balanced Subaccount (1)............ 0(/\/\) $ 9.18 0(/\/\/\) 4.63(/\) 0.75(/\) (8.20)
Equity Income Subaccount (2)....... 231 $ 9.35 2 1.59(/\) 0.75(/\) (6.50)
Multi-Cap Growth Subaccount (3).... 572 $ 8.76 5 0.00(/\) 0.75(/\) (12.40)
Small Company Growth Subaccount (4) 476 $10.51 5 0.00(/\) 0.75(/\) 5.10
Mid-Cap Growth Subaccount (4)...... 379 $ 9.49 4 0.00(/\) 0.75(/\) (5.10)
Worldwide Growth Subaccount (5).... 0(/\/\) $10.01 0(/\/\/\) 0.00(/\) 0.75(/\) 0.10
F-121
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
5. Financial Highlights: (continued)
At December 31, 2001 For the period ended December 31, 2001
------------------ -----------------------------------
Net Investment
Unit Assets Income Expense Total
MONYEquity Master Subaccounts Units Values (000s) Ratio* Ratio** Return***
- ----------------------------- ------ ------ ------ ---------- ------- ---------
Dreyfus
Dreyfus Stock Index Subaccount.................... 19,709 $7.96 157 0.51 0.75 (12.91)
Dreyfus Socially Responsible Growth Subaccount (6) 44 $8.57 0(/\/\/\) 0.00(/\) 0.75(/\) (14.30)
Fidelity Variable Insurance Products Funds
VIP Growth Subaccount............................. 26,701 $7.51 200 0.00 0.75 (18.37)
VIP II Contrafund Subaccount...................... 13,866 $8.21 114 0.59 0.75 (13.03)
VIP III Growth Opportunities Subaccount (6)....... 199 $9.27 2 0.00(/\) 0.75(/\) (7.30)
Janus Aspen Series
Aggressive Growth Subaccount (6).................. 413 $8.04 3 0.00(/\) 0.75(/\) (19.60)
Balanced Subaccount (5)........................... 1,435 $9.79 14 4.79(/\) 0.75(/\) (2.10)
Capital Appreciation Subaccount................... 39,919 $6.46 258 1.34 0.75 (22.36)
Worldwide Growth Subaccount....................... 38,546 $6.19 238 0.54 0.75 (23.01)
- ----------
* This ratio represents the amount of dividend income, excluding
distributions from net realized gains, received by the subaccount from the
underlying fund, net of investment advisory fees assessed by the underlying
fund's investment adviser and other expenses of the underlying fund,
divided by the average net assets of the subaccount. These ratios exclude
those expenses, such as mortality and expense charges, that result in
direct reductions in the net asset value per Unit. The recognition of
dividend income by the subaccount is affected by the timing of the
declaration of dividends by the underlying fund in which the subaccounts
invest.
** This ratio represents the annual contract expenses of the separate account,
consisting primarily of mortality and expense charges, for each period
indicated. The ratio includes only those expenses that result in a direct
reduction to net asset value per Unit. Charges made directly to
contractholder accounts by redemption of Units and expenses of the
respective underlying fund are excluded from this ratio.
*** Represents the total return for the period indicated, including changes in
the value of the underlying fund, and reflect deductions for all items
included in the Expense Ratio. The Total Return does not include any
expenses assessed through the redemption of Units; the Total Return would
have been lower had such expenses been included in the calculation. Total
returns for periods less than one year are not annualized.
(/\)Annualized
(/\/\)Amounts round to less than one
(/\/\/\)Amounts round to less than one thousand
(1) For the period May 4, 2001 through December 31, 2001.
(2) For the period June 19, 2001 through December 31, 2001
(3) For the period May 18, 2001 through December 31, 2001.
(4) For the period August 8, 2001 through December 31, 2001.
(5) For the period June 13, 2001 through December 31, 2001.
(6) For the period May 15, 2001 through December 31, 2001.
F-122
MONY
Variable Account L
COMBINED STATEMENT OF ASSETS AND LIABILITIES (unaudited)
June 30, 2002
ASSETS
Investments at cost....................................... $ 45,127,107
============
Investments in respective Funds, at net asset value....... $ 33,132,212
Amount due from MONY America.............................. 7,533
Amount due from respective Funds.......................... 9,117
------------
Total assets....................................... 33,148,862
============
LIABILITIES
Amount due to MONY America................................ 72,718
Amount due to respective Funds............................ 7,556
------------
Total liabilities.................................. 80,274
============
Net assets................................................ $ 33,068,588
============
Net assets consist of:
Contractholders' net payments............................ $ 38,873,061
Undistributed net investment income...................... 11,814,593
Accumulated net realized gain (loss) on investments...... (5,624,171)
Net unrealized appreciation (depreciation) of investments (11,994,895)
------------
Net assets................................................ $ 33,068,588
============
F-123
MONY
Variable Account L
COMBINED STATEMENT OF STATEMENT OF OPERATIONS (unaudited)
For the six months ended June 30, 2002
Dividend income................................................ $ 125,287
Distribution from net realized gains........................... 0
Mortality and expense risk charges............................. (110,662)
-----------
Net investment income (loss)................................... 14,625
-----------
Realized and unrealized gain (loss) on investments:
Net realized loss on investments.............................. (1,712,620)
Net change in unrealized appreciation of investments.......... (2,543,540)
-----------
Net realized and unrealized gain (loss) on investments......... (4,256,160)
-----------
Net increase (decrease) in net assets resulting from operations $(4,241,532)
===========
F-124
MONY
Variable Account L
COMBINED STATEMENT OF CHANGES IN NET ASSETS (unaudited)
For the For the
period ended period ended
June 30, December 31,
2002 2001
------------ ------------
From operations:
Net investment income................................................. $ 14,625 $ 3,231,474
Net realized gain (loss) on investments............................... (1,712,620) (3,270,716)
Net change in unrealized appreciation (depreciation) of investments... (2,543,540) (3,560,698)
----------- -----------
Net increase in net assets resulting from operations................... (4,241,535) (3,599,940)
----------- -----------
From unit transactions:
Net proceeds from the issuance of units............................... 7,785,100 15,851,567
Net asset value of units redeemed or used to meet contract obligations (3,939,786) (5,925,950)
----------- -----------
Net increase from unit transactions.................................... 3,845,314 9,925,617
----------- -----------
Net increase (decrease) in net assets.................................. (396,220) 6,325,677
Net assets beginning of period......................................... 33,464,808 27,139,131
----------- -----------
Net assets end of period*.............................................. 33,068,588 33,464,808
=========== ===========
- ----------
*Includes undistributed net investment income of: $11,814,563 $11,799,967
=========== ===========
F-125
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS (unaudited)
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 29, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Payment Variable Life insurance policies (Strategist),
Variable Universal Life Insurance policies (MONYEquity Master, MONY Custom
Equity Master, and MONY Custom Estate Master), Variable Universal Life
Insurance, and Survivorship Variable Universal Life Insurance policies,
collectively the funds. These policies are issued by MONY America, which is a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY"). For
presentation purposes, the information related to all Variable Life Insurance
policies issued under the Variable Account is presented for the Variable
Account as a whole.
There are currently twenty-eight MONYEquity Master subaccounts, six
Strategist subaccounts, thirty-five MONY Custom Equity Master subaccounts,
thirty-five MONY Custom Estate Master subaccounts, thirty-five Variable
Universal Life subaccounts, and thirty-five Survivorship Universal Life
subaccounts within the variable account (each hereafter referred to as a
"subaccount"). Each subaccount holds assets that are segregated from all other
subaccounts within the Variable Account.
Each subaccount invests only in a corresponding portfolio of the MONY Series
Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust ("Enterprise"),
Dreyfus Stock Index Fund, Dreyfus Socially Responsible Growth Fund, Inc.,
Fidelity Variable Insurance Products Funds, Janus Aspen Series, Alger American
Fund, INVESCO Variable Investment Funds, Inc. PIMCO Variable Insurance Trust,
MFS Variable Insurance Trust, Lord Abbett Series Funds, and PBHG Insurance
Series Funds (collectively, the "Funds"). The Funds are registered under the
1940 Act as open-end, diversified, management investment companies. The Fund
and Enterprise are affiliated with MONY.
These combined financial statements should be read in conjunction with the
separate financial statements and footnotes of each of the Variable Insurance
Policies which are presented on pages before these combined financial
statements.
2. Significant Accounting Policies:
The preparation of the combined financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates.
Investments:
The investment held by each subaccount in the shares of each of the
respective Funds' portfolios is stated at value which is the net asset value of
the respective portfolio as reported by such portfolio. Net asset values are
based upon market or fair valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolio, the net
asset value is based on the amortized cost of the securities held, which
approximates market value. For the purposes of presentation of the combined
financial statements, investments held at June 30, 2002 by all of the
subaccounts within the Variable Account have been aggregated.
Investment Transactions and Investment Income:
Investments made by the subacccounts in the portfolios of the Funds are
recorded on the trade date. Realized gains and losses on redemption of
investments by the subaccounts in the portfolios of the Funds are determined on
the identified cost-basis. Dividend income and distributions of net realized
gains are recorded by the respective subacount on ex-dividend date. Investment
F-126
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS (unaudited) (continued)
income includes dividends from net investment income and distributions of net
realized gains received from the respective portfolios of the Funds. Dividends
and distributions received by the subaccounts are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for Federal
income tax purposes.
3. Related Party Transactions:
MONY is the legal owner of the assets of the Variable Account.
Purchase payments received from MONY by the Variable Account represent gross
purchase payments recorded by MONY less deductions retained as compensation for
any premium taxes.
A periodic deduction is made from the cash value of the contract for the
Annual Contract Charge. A surrender charge may be imposed by MONY when a full
or partial surrender is requested by the policyholders. These deductions are
treated by the Variable Account as contractholder redemptions. For the period
ended June 30, 2002 the aggregate amount deducted for such purposes for all
subaccounts within the Variable Account was $2,182,882.
MONY receives from the subaccounts within the Variable Account amounts
deducted for mortality and expense risks at annual rates ranging from .35% to
1.35% of the average daily net assets of each of the respective subaccounts
within the Variable Account. As investment adviser to the Fund, it receives
amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to Enterprise, and it receives amounts paid by Enterprise
for those services.
MONY America and MONY receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the period ended June
30, 2002, MONY America and MONY received $3,640 in aggregate from certain Funds
in connection with the subaccounts within the Variable Account.
F-127
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS (unaudited) (continued)
4. Investments in Funds:
At June 30, 2002, the aggregate value of investments held in a portfolio of
the Funds by all subaccounts within the Variable Account were as follows:
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio.............. 271,596
Long Term Bond Portfolio...................... 507,350
Government Securities Portfolio............... 474,746
Money Market Portfolio........................ 2,095,374
Equity Growth Portfolio....................... 65,716
Equity Income Portfolio....................... 47,487
Diversified Portfolio......................... 79,273
Enterprise Accumulation Trust
Equity Portfolio.............................. 5,838,604
Small Company Value Portfolio................. 5,033,202
Managed Portfolio............................. 7,648,510
International Growth Portfolio................ 1,406,683
High Yield Bond Portfolio..................... 755,818
Growth Portfolio.............................. 1,014,738
Growth and Income Portfolio................... 1,050,750
Small Company Growth Portfolio................ 394,774
Equity Income Portfolio....................... 149,842
Capital Appreciation Portfolio................ 439,655
Multi-Cap Growth Portfolio.................... 463,862
Balanced Portfolio............................ 82,432
Worldwide Growth Portfolio.................... 6,307
Emerging Countries Portfolio.................. 2,964
Mid-Cap Growth Portfolio...................... 39,786
Globally Socially Responsive Subaccount....... 20,607
Total Return Subaccount....................... 20,090
Dreyfus
Dreyfus Stock Index Fund...................... 968,202
Dreyfus Socially Responsible Growth Fund, Inc. 106,218
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 661,244
VIP II Contrafund Portfolio................... 550,503
VIP III Growth Opportunities Portfolio........ 96,440
Janus Aspen Series
Aggressive Growth Portfolio................... 456,527
Balanced Portfolio............................ 361,220
F-128
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS (unaudited) (continued)
4. Investments in Funds: (continued)
Capital Appreciation Portfolio.............. 654,419
Flexible Income Portfolio................... 14,344
International Growth Portfolio.............. 47,653
Worldwide Growth Portfolio.................. 797,106
Strategic Value Portfolio...................
Alger American Fund
Balanced Subaccount......................... 7,475
Mid Cap Subaccount.......................... 46,375
Invesco Variable Series Funds
Financial Services Subaccount............... 11,461
Health Sciences Subaccount.................. 5,484
Telecommunications Subaccount............... 8,923
MFS Variable Insurance Trust
Mid Cap Growth Subaccount................... 15,483
New Discovery Subaccount.................... 19,379
Total Return Subaccount..................... 23,782
Utilities Subaccount........................ 4,293
The Universal Institutional Funds, Inc.
Emerging Equities Subaccount................ 23,915
Global Value Equity Subaccount.............. 799
U.S. Real Estate Subaccount................. 20,001
Lord Abbett Series Funds
Bond Debenture Subaccount................... 11,458
Growth & Income Subaccount.................. 31,862
Mid Cap Value Subaccount.................... 15,631
PIMCO Variable Insurance Trust
Global Bond Subaccount...................... 29,143
Real Return Subaccount...................... 28,902
StockPlus Growth & Income................... 92,617
PBHG Insurance Series Funds
Mid Cap Value Subaccount.................... 41,583
Select Value Subaccount..................... 5,983
Total Net Asset--Combined Variable Account L
Account L................................... 33,068,588
During the six months ended June 30, 2002, the aggregate cost of shares
purchased and the aggregate Proceeds from shares redeemed of the Funds by all
the subaccounts within the Variable Account were $39,087,843 and $5,315,698
respectively.
F-129
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L -- MONY Custom Equity Master
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of MONY Custom Equity Master's Subaccounts of MONY America Variable
Account L at December 31, 2001, and the results of each of their operations,
the changes in each of their net assets and the financial highlights for the
periods presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of MONY Life Insurance Company of America's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
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, which included
confirmation of investments at December 31, 2001 by correspondence with the
underlying funds' transfer agents, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
April 12, 2002
F-130
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-131
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2001
MONY Custom Equity Master
---------------------------------------------
MONY Series Fund, Inc.
---------------------------------------------
Intermediate Long Term Government Money
Term Bond Bond Securities Market
Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ----------
ASSETS
Shares held in respective Funds.............. 5,436 4,498 7,417 1,301,258
======= ======= ======= ==========
Investments at cost.......................... $59,645 $59,499 $84,254 $1,301,258
======= ======= ======= ==========
Investments in respective Funds, at net
asset value................................ $61,261 $60,178 $84,999 $1,301,258
Amount due from MONY......................... 0 0 361 0
Amount due from respective Funds............. 0 0 0 801
------- ------- ------- ----------
Total assets.......................... 61,261 60,178 85,360 1,302,059
------- ------- ------- ----------
LIABILITIES
Amount due to MONY........................... 11 10 14 1,012
Amount due to respective Funds............... 0 0 361 0
------- ------- ------- ----------
Total liabilities..................... 11 10 375 1,012
------- ------- ------- ----------
Net assets................................... $61,250 $60,168 $84,985 $1,301,047
======= ======= ======= ==========
Net assets consist of:
Contractholders' net payments.............. $58,301 $58,092 $83,431 $1,283,977
Undistributed net investment income........ 823 969 405 17,070
Accumulated net realized gain (loss) on
investments............................... 510 428 404 0
Net unrealized appreciation (depreciation)
of investments............................ 1,616 679 745 0
------- ------- ------- ----------
Net assets................................... $61,250 $60,168 $84,985 $1,301,047
======= ======= ======= ==========
Number of units outstanding*................. 5,383 5,166 7,316 121,626
------- ------- ------- ----------
Net asset value per unit outstanding*........ $ 11.38 $ 11.65 $ 11.62 $ 10.70
======= ======= ======= ==========
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-132
MONY Custom Equity Master
- -----------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- -----------------------------------------------------------------------------------------------------------------------
Small Company International High Yield Growth and Small Company Equity Capital
Equity Value Managed Growth Bond Growth Income Growth Income Appreciation
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ------------- ---------- ------------- ---------- ---------- ---------- ------------- ---------- ------------
37,116 13,002 14,902 21,392 18,452 114,113 87,958 36,420 17,259 45,241
========= ======== ======== ======== ======= ======== ======== ======== ======= ========
$ 749,042 $279,993 $323,111 $109,419 $81,869 $602,891 $491,383 $278,747 $89,960 $274,197
========= ======== ======== ======== ======= ======== ======== ======== ======= ========
$ 643,596 $254,705 $292,086 $ 92,625 $80,082 $594,531 $475,851 $286,622 $86,639 $257,421
1,661 2,902 3,628 244 0 4,743 3,478 1,547 0 1,675
1,409 503 331 176 0 541 352 167 0 173
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
646,666 258,110 296,045 93,045 80,082 599,815 479,681 288,336 86,639 259,269
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
1,519 544 380 191 14 642 431 214 14 217
1,661 2,902 3,628 244 0 4,743 3,478 1,547 0 1,675
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
3,180 3,446 4,008 435 14 5,385 3,909 1,761 14 1,892
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
$ 643,486 $254,664 $292,037 $ 92,610 $80,068 $594,430 $475,772 $286,575 $86,625 $257,377
========= ======== ======== ======== ======= ======== ======== ======== ======= ========
$ 742,025 $245,321 $310,034 $111,406 $78,507 $621,190 $504,956 $281,311 $90,439 $293,979
103,298 47,053 22,894 11,132 3,662 1,418 2,353 8,008 509 3,609
(96,391) (12,422) (9,866) (13,134) (314) (19,818) (16,005) (10,619) (1,002) (23,435)
(105,446) (25,288) (31,025) (16,794) (1,787) (8,360) (15,532) 7,875 (3,321) (16,776)
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
$ 643,486 $254,664 $292,037 $ 92,610 $80,068 $594,430 $475,772 $286,575 $86,625 $257,377
========= ======== ======== ======== ======= ======== ======== ======== ======= ========
93,665 22,978 31,845 14,206 7,695 70,201 53,806 29,439 9,356 33,465
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
$ 6.87 $ 11.08 $ 9.17 $ 6.52 $ 10.40 $ 8.47 $ 8.84 $ 9.73 $ 9.26 $ 7.69
========= ======== ======== ======== ======= ======== ======== ======== ======= ========
F-133
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
December 31, 2001
MONY Custom Equity Master
-----------------------------------------------------
Enterprise Accumulation Trust
-----------------------------------------------------
Multi-Cap Emerging Worldwide Mid-Cap
Growth Balanced Countries Growth Growth
Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ----------
ASSETS
Shares held in respective Funds........................ 45,725 12,494 171 456 1,532
======== ======= ====== ====== =======
Investments at cost.................................... $399,259 $59,665 $1,479 $3,941 $10,868
======== ======= ====== ====== =======
Investments in respective Funds, at net asset value.... $385,464 $60,719 $1,631 $4,071 $11,769
Amount due from MONY................................... 1,798 1,120 0 0 0
Amount due from respective Funds....................... 248 108 0 0 0
-------- ------- ------ ------ -------
Total assets.................................... 387,510 61,947 1,631 4,071 11,769
-------- ------- ------ ------ -------
LIABILITIES
Amount due to MONY..................................... 313 118 0 1 2
Amount due to respective Funds......................... 1,798 1,120 0 0 0
-------- ------- ------ ------ -------
Total liabilities............................... 2,111 1,238 0 1 2
-------- ------- ------ ------ -------
Net assets............................................. $385,399 $60,709 $1,631 $4,070 $11,767
======== ======= ====== ====== =======
Net assets consist of:
Contractholders' net payments........................ $443,919 $59,793 $1,521 $4,041 $11,168
Undistributed net investment income (loss)........... (1,019) 586 (2) (3) (9)
Accumulated net realized loss on investments......... (43,706) (724) (40) (98) (293)
Net unrealized appreciation (depreciation) of
investments......................................... (13,795) 1,054 152 130 901
-------- ------- ------ ------ -------
Net assets............................................. $385,399 $60,709 $1,631 $4,070 $11,767
======== ======= ====== ====== =======
Number of units outstanding*........................... 60,270 6,380 169 463 1,466
-------- ------- ------ ------ -------
Net asset value per unit outstanding*.................. $ 6.39 $ 9.52 $ 9.61 $ 8.80 $ 8.03
======== ======= ====== ====== =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-134
MONY Custom Equity Master
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds Janus Aspen Series
----------------------------------------- --------------------------------------------
Dreyfus
Dreyfus Socially VIP III
Stock Responsible VIP VIP II Growth Aggressive Capital Worldwide
Index Growth Growth Contrafund Opportunities Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ---------- ----------- ---------- ---------- ------------- ---------- ---------- ------------ ---------- ----------
21,988 3,101 12,649 15,784 4,194 18,261 11,019 14,535 15,934
======== ======= ======== ======== ======= ======== ======== ======== ========
$674,324 $88,422 $447,403 $330,381 $64,430 $459,270 $255,689 $333,079 $509,085 $8,422,563
======== ======= ======== ======== ======= ======== ======== ======== ======== ==========
$645,574 $82,707 $423,492 $316,619 $63,375 $401,366 $248,691 $301,173 $454,769 $7,973,274
1,699 764 1,884 2,081 335 1,937 3,020 772 2,107 37,756
1,499 64 667 367 69 1,358 159 459 301 9,752
-------- ------- -------- -------- ------- -------- -------- -------- -------- ----------
648,772 83,535 426,043 319,067 63,779 404,661 251,870 302,404 457,177 8,020,782
-------- ------- -------- -------- ------- -------- -------- -------- -------- ----------
1,608 78 739 420 80 1,425 201 510 376 11,084
1,699 764 1,884 2,081 335 1,937 3,020 772 2,107 37,756
-------- ------- -------- -------- ------- -------- -------- -------- -------- ----------
3,307 842 2,623 2,501 415 3,362 3,221 1,282 2,483 48,840
-------- ------- -------- -------- ------- -------- -------- -------- -------- ----------
$645,465 $82,693 $423,420 $316,566 $63,364 $401,299 $248,649 $301,122 $454,694 $7,971,942
======== ======= ======== ======== ======= ======== ======== ======== ======== ==========
$695,136 $96,904 $483,305 $346,113 $69,722 $553,382 $255,541 $366,354 $560,465 $8,710,333
10,963 1 10,145 5,073 (100) 1,257 6,467 3,096 3,035 262,693
(31,884) (8,497) (46,119) (20,858) (5,203) (95,436) (6,361) (36,422) (54,490) (551,795)
(28,750) (5,715) (23,911) (13,762) (1,055) (57,904) (6,998) (31,906) (54,316) (449,289)
-------- ------- -------- -------- ------- -------- -------- -------- -------- ----------
$645,465 $82,693 $423,420 $316,566 $63,364 $401,299 $248,649 $301,122 $454,694 $7,971,942
======== ======= ======== ======== ======= ======== ======== ======== ======== ==========
78,584 11,748 57,776 37,789 8,012 90,311 26,527 46,253 71,160
-------- ------- -------- -------- ------- -------- -------- -------- --------
$ 8.21 $ 7.04 $ 7.33 $ 8.38 $ 7.91 $ 4.44 $ 9.37 $ 6.51 $ 6.39
======== ======= ======== ======== ======= ======== ======== ======== ========
F-135
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the year ended December 31, 2001
MONY Custom Equity Master
--------------------------------------------
MONY Series Fund, Inc.
--------------------------------------------
Intermediate Long Term Government Money
Term Bond Bond Securities Market
Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ----------
Dividend income....................... $ 960 $1,095 $ 531 $18,123
Distribution from net realized gains.. 0 0 0 0
Mortality and expense risk charges.... (124) (119) (122) (2,102)
------ ------ ------ -------
Net investment income................. 836 976 409 16,021
------ ------ ------ -------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments........................ 481 412 383 0
Net change in unrealized
appreciation (depreciation) of
investments........................ 1,137 301 594 0
------ ------ ------ -------
Net realized and unrealized gain
(loss) on investments............... 1,618 713 977 0
------ ------ ------ -------
Net increase (decrease) in net assets
resulting from operations........... $2,454 $1,689 $1,386 $16,021
====== ====== ====== =======
See notes to financial statements.
F-136
MONY Custom Equity Master
- ------------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- -----------------------------------------------------------------------------------------------------------------------
Small Company International High Yield Growth and Small Company Equity Capital
Equity Value Managed Growth Bond Growth Income Growth Income Appreciation
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ------------- ---------- ------------- ---------- ---------- ---------- ------------- ---------- ------------
$ 0 $ 422 $ 5,625 $ 529 $ 3,649 $ 2,213 $ 3,348 $ 0 $ 699 $ 1,353
90,967 42,654 13,457 8,192 0 0 0 8,469 0 0
(1,529) (472) (724) (227) (145) (1,381) (1,009) (627) (188) (638)
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
89,438 42,604 18,358 8,494 3,504 832 2,339 7,842 511 715
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
(89,824) (10,977) (7,992) (12,259) (279) (18,278) (15,933) (10,901) (1,072) (22,752)
(68,120) (22,560) (32,257) (13,112) (1,717) (12,826) (14,041) 9,613 (4,337) (7,298)
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
(157,944) (33,537) (40,249) (25,371) (1,996) (31,104) (29,974) (1,288) (5,409) (30,050)
- --------- -------- -------- -------- ------- -------- -------- -------- ------- --------
$ (68,506) $ 9,067 $(21,891) $(16,877) $ 1,508 $(30,272) $(27,635) $ 6,554 $(4,898) $(29,335)
========= ======== ======== ======== ======= ======== ======== ======== ======= ========
F-137
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
MONY Custom Equity Master
-----------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
---------------------------------------------------------------------
Multi-Cap Emerging Worldwide Mid-Cap Dreyfus Dreyfus Socially
Growth Balanced Countries Growth Growth Stock Index Responsible Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------ ------------ -------------- -------------- -------------- ------------ ------------------
For the period For the period For the period
For the year For the year June 8, 2001** June 8, 2001** June 8, 2001** For the year For the year
ended ended through through through ended ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2001 2001 2001 2001 2001 2001
------------ ------------ -------------- -------------- -------------- ------------ ------------------
Dividend income.......... $ 0 $ 685 $ 0 $ 0 $ 0 $ 5,230 $ 51
Distribution from net
realized gains......... 0 0 0 0 0 3,330 0
Mortality and expense
risk charges........... (907) (116) (2) (3) (9) (1,430) (191)
-------- ----- ---- ---- ----- -------- --------
Net investment
income (loss).......... (907) 569 (2) (3) (9) 7,130 (140)
-------- ----- ---- ---- ----- -------- --------
Realized and unrealized
gain (loss) on
investments:
Net realized loss on
investments........... (41,378) (612) (40) (98) (293) (30,637) (8,248)
Net change in
unrealized
appreciation
(depreciation) of
investments........... 9,788 825 152 130 901 (15,177) (3,277)
-------- ----- ---- ---- ----- -------- --------
Net realized and
unrealized gain (loss)
on investments......... (31,590) 213 112 32 608 (45,814) (11,525)
-------- ----- ---- ---- ----- -------- --------
Net increase (decrease)
in net assets
resulting from
operations............. $(32,497) $ 782 $110 $ 29 $ 599 $(38,684) $(11,665)
======== ===== ==== ==== ===== ======== ========
- ----------
** Commencement of operations
See notes to financial statements.
F-138
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the year ended December 31, 2001
MONY Custom Equity Master
----------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds Janus Aspen Series
----------------------------------------- --------------------------------------------
VIP VIP II VIP III Aggressive Capital Worldwide
Growth Contrafund Growth Opportunities Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- - ---------- ---------- -------------------- ---------- ---------- ------------ ----------
Dividend income................. $ 0 $ 1,212 $ 68 $ 0 $ 5,611 $ 3,168 $ 2,042
Distribution from net realized
gains......................... 11,254 4,848 0 0 0 0 0
Mortality and expense risk
charges....................... (990) (828) (145) (951) (615) (785) (1,204)
-------- -------- ------- --------- -------- -------- --------
Net investment income (loss).... 10,264 5,232 (77) (951) 4,996 2,383 838
-------- -------- ------- --------- -------- -------- --------
Realized and unrealized gain
(loss) on investments:
Net realized loss on
investments.................. (45,170) (20,592) (4,908) (89,137) (5,465) (34,995) (50,896)
Net change in unrealized
appreciation (depreciation)
of investments............... (7,814) (7,442) 1,115 (23,785) (5,338) (13,217) (28,133)
-------- -------- ------- --------- -------- -------- --------
Net realized and unrealized loss
on investments................ (52,984) (28,034) (3,793) (112,922) (10,803) (48,212) (79,029)
-------- -------- ------- --------- -------- -------- --------
Net decrease in net assets
resulting from operations..... $(42,720) $(22,802) $(3,870) $(113,873) $ (5,807) $(45,829) $(78,191)
======== ======== ======= ========= ======== ======== ========
Total
- - ---------
Dividend income................. $ 56,614
Distribution from net realized
gains......................... 183,171
Mortality and expense risk
charges....................... (17,583)
---------
Net investment income (loss).... 222,202
---------
Realized and unrealized gain
(loss) on investments:
Net realized loss on
investments.................. (521,460)
Net change in unrealized
appreciation (depreciation)
of investments............... (255,895)
---------
Net realized and unrealized loss
on investments................ (777,355)
---------
Net decrease in net assets
resulting from operations..... $(555,153)
=========
See notes to financial statements.
F-139
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
MONY Custom Equity Master
------------------------------------------------------
MONY Series Fund, Inc.
------------------------------------------------------
Long Term
Intermediate Bond
Term Bond Subaccount Subaccount
-------------------------- --------------------------
For the period For the period
For the year June 9, 2000** For the year June 9, 2000**
ended through ended through
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
------------ -------------- ------------ --------------
From operations:
Net investment income (loss)................................... $ 836 $ (13) $ 976 $ (7)
Net realized gain (loss) on investments........................ 481 29 412 16
Net change in unrealized appreciation (depreciation) of
investments................................................... 1,137 479 301 378
-------- ------- -------- -------
Net increase (decrease) in net assets resulting from operations.. 2,454 495 1,689 387
-------- ------- -------- -------
From unit transactions:
Net proceeds from the issuance of units........................ 54,847 16,418 65,177 10,427
Net asset value of units redeemed or used to meet
contract obligations.......................................... (12,148) (816) (17,053) (459)
-------- ------- -------- -------
Net increase from unit transactions.............................. 42,699 15,602 48,124 9,968
-------- ------- -------- -------
Net increase in net assets....................................... 45,153 16,097 49,813 10,355
Net assets beginning of period................................... 16,097 0 10,355 0
-------- ------- -------- -------
Net assets end of period*........................................ $ 61,250 $16,097 $ 60,168 $10,355
======== ======= ======== =======
Unit transactions:
Units outstanding beginning of period............................ 1,530 0 942 0
Units issued during the period................................... 4,957 1,609 5,723 985
Units redeemed during the period................................. (1,104) (79) (1,499) (43)
-------- ------- -------- -------
Units outstanding end of period.................................. 5,383 1,530 5,166 942
======== ======= ======== =======
- ----------
* Includes undistributed net investment income (loss) of: $ 823 $ (13) $ 969 $ (7)
======== ======= ======== =======
** Commencement of operations
See notes to financial statements.
F-140
MONY Custom Equity Master
- --------------------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
- ------------------------------------------------------ ------------------------------------------------------
Government Money Small Company
Securities Market Equity Value
Subaccount Subaccount Subaccount Subaccount
- -------------------------- -------------------------- -------------------------- --------------------------
For the period For the period For the period For the period
For the year May 18, 2000** For the year June 8, 2000** For the year May 5, 2000** For the year May 3, 2000**
ended through ended through ended through ended through
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2000 2001 2000
- ------------ -------------- ------------ -------------- ------------ -------------- ------------ --------------
$ 409 $ (4) $ 16,021 $ 1,049 $ 89,438 $ 13,860 $ 42,604 $ 4,449
383 21 0 0 (89,824) (6,567) (10,977) (1,445)
594 151 0 0 (68,120) (37,326) (22,560) (2,728)
-------- ------ ---------- --------- --------- -------- -------- -------
1,386 168 16,021 1,049 (68,506) (30,033) 9,067 276
-------- ------ ---------- --------- --------- -------- -------- -------
93,798 6,616 1,828,369 420,053 614,166 265,821 237,430 64,812
(16,515) (468) (584,681) (379,764) (125,139) (12,823) (53,014) (3,907)
-------- ------ ---------- --------- --------- -------- -------- -------
77,283 6,148 1,243,688 40,289 489,027 252,998 184,416 60,905
-------- ------ ---------- --------- --------- -------- -------- -------
78,669 6,316 1,259,709 41,338 420,521 222,965 193,483 61,181
6,316 0 41,338 0 222,965 0 61,181 0
-------- ------ ---------- --------- --------- -------- -------- -------
$ 84,985 $6,316 $1,301,047 $ 41,338 $ 643,486 $222,965 $254,664 $61,181
======== ====== ========== ========= ========= ======== ======== =======
577 0 3,997 0 26,254 0 5,789 0
8,191 621 172,939 41,193 85,417 27,602 22,117 6,158
(1,452) (44) (55,310) (37,196) (18,006) (1,348) (4,928) (369)
-------- ------ ---------- --------- --------- -------- -------- -------
7,316 577 121,626 3,997 93,665 26,254 22,978 5,789
======== ====== ========== ========= ========= ======== ======== =======
$ 405 $ (4) $ 17,070 $ 1,049 $ 103,298 $ 13,860 $ 47,053 $ 4,449
======== ====== ========== ========= ========= ======== ======== =======
F-141
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (Continued)
MONY Custom Equity Master
------------------------------------------------------
Enterprise Accumulation Trust
------------------------------------------------------
International
Managed Growth
Subaccount Subaccount
-------------------------- --------------------------
For the period For the period
For the year May 5, 2000** For the year May 3, 2000**
ended through ended through
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
------------ -------------- ------------ --------------
From operations:
Net investment income.......................................... $ 18,358 $ 4,536 $ 8,494 $ 2,638
Net realized gain (loss) on investments........................ (7,992) (1,874) (12,259) (875)
Net change in unrealized appreciation (depreciation) of
investments................................................... (32,257) 1,232 (13,112) (3,682)
-------- -------- -------- -------
Net increase (decrease) in net assets resulting from operations.. (21,891) 3,894 (16,877) (1,919)
-------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of units........................ 226,381 128,670 86,356 55,852
Net asset value of units redeemed or used to meet contract
obligations................................................... (40,330) (4,687) (24,672) (6,130)
-------- -------- -------- -------
Net increase from unit transactions.............................. 186,051 123,983 61,684 49,722
-------- -------- -------- -------
Net increase in net assets....................................... 164,160 127,877 44,807 47,803
Net assets beginning of period................................... 127,877 0 47,803 0
-------- -------- -------- -------
Net assets end of period*........................................ $292,037 $127,877 $ 92,610 $47,803
======== ======== ======== =======
Unit transactions:
Units outstanding beginning of period............................ 12,345 0 5,274 0
Units issued during the period................................... 23,812 12,801 12,354 5,933
Units redeemed during the period................................. (4,312) (456) (3,422) (659)
-------- -------- -------- -------
Units outstanding end of period.................................. 31,845 12,345 14,206 5,274
======== ======== ======== =======
- ----------
* Includes undistributed net investment income of: $ 22,894 $ 4,536 $ 11,132 $ 2,638
======== ======== ======== =======
** Commencement of operations
See notes to financial statements.
F-142
MONY Custom Equity Master
- --------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- --------------------------------------------------------------------------------------------------------------
High Yield Growth and Small Company
Bond Growth Income Growth
Subaccount Subaccount Subaccount Subaccount
- -------------------------- -------------------------- -------------------------- --------------------------
For the period For the period For the period For the period
For the year June 8, 2000** For the year May 3, 2000** For the year May 3, 2000** For the year May 3, 2000**
ended through ended through ended through ended through
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2000 2001 2000
- ------------ -------------- ------------ -------------- ------------ -------------- ------------ --------------
$ 3,504 $ 158 $ 832 $ 586 $ 2,339 $ 14 $ 7,842 $ 166
(279) (35) (18,278) (1,540) (15,933) (72) (10,901) 282
(1,717) (70) (12,826) 4,466 (14,041) (1,491) 9,613 (1,738)
-------- ------- --------- -------- --------- -------- -------- --------
1,508 53 (30,272) 3,512 (27,635) (1,549) 6,554 (1,290)
-------- ------- --------- -------- --------- -------- -------- --------
76,810 15,182 515,492 240,695 521,272 100,715 238,098 105,946
(12,573) (912) (117,820) (17,177) (105,992) (11,039) (54,202) (8,531)
-------- ------- --------- -------- --------- -------- -------- --------
64,237 14,270 397,672 223,518 415,280 89,676 183,896 97,415
-------- ------- --------- -------- --------- -------- -------- --------
65,745 14,323 367,400 227,030 387,645 88,127 190,450 96,125
14,323 0 227,030 0 88,127 0 96,125 0
-------- ------- --------- -------- --------- -------- -------- --------
$ 80,068 $14,323 $ 594,430 $227,030 $ 475,772 $ 88,127 $286,575 $ 96,125
======== ======= ========= ======== ========= ======== ======== ========
1,453 0 23,359 0 8,752 0 9,464 0
7,462 1,543 60,795 25,155 56,790 9,822 25,927 10,293
(1,220) (90) (13,953) (1,796) (11,736) (1,070) (5,952) (829)
-------- ------- --------- -------- --------- -------- -------- --------
7,695 1,453 70,201 23,359 53,806 8,752 29,439 9,464
======== ======= ========= ======== ========= ======== ======== ========
$ 3,662 $ 158 $ 1,418 $ 586 $ 2,353 $ 14 $ 8,008 $ 166
======== ======= ========= ======== ========= ======== ======== ========
F-143
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
------------------------------------------------------
Enterprise Accumulation Trust
------------------------------------------------------
Equity Capital
Income Appreciation
Subaccount Subaccount
-------------------------- --------------------------
For the period For the period
For the year May 18, 2000** For the year May 4, 2000**
ended through ended through
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
------------ -------------- ------------ --------------
From operations:
Net investment income (loss).......... $ 511 $ (2) $ 715 $ 2,894
Net realized gain (loss) on
investments.......................... (1,072) 70 (22,752) (683)
Net change in unrealized appreciation
(depreciation) of investments........ (4,337) 1,016 (7,298) (9,478)
-------- ------- -------- --------
Net increase (decrease) in net assets
resulting from operations............. (4,898) 1,084 (29,335) (7,267)
-------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 80,770 30,826 223,818 136,240
Net asset value of units redeemed or
used to meet contract obligations.... (18,589) (2,568) (54,654) (11,425)
-------- ------- -------- --------
Net increase from unit transactions..... 62,181 28,258 169,164 124,815
-------- ------- -------- --------
Net increase in net assets.............. 57,283 29,342 139,829 117,548
Net assets beginning of period.......... 29,342 0 117,548 0
-------- ------- -------- --------
Net assets end of period*............... $ 86,625 $29,342 $257,377 $117,548
======== ======= ======== ========
Unit transactions:
Units outstanding beginning of period... 2,818 0 12,316 0
Units issued during the period.......... 8,493 3,077 28,080 13,448
Units redeemed during the period........ (1,955) (259) (6,931) (1,132)
-------- ------- -------- --------
Units outstanding end of period......... 9,356 2,818 33,465 12,316
======== ======= ======== ========
- ----------
* Includes undistributed net
investment income (loss) of: $ 509 $ (2) $ 3,609 $ 2,894
======== ======= ======== ========
** Commencement of operations
See notes to financial statements.
F-144
MONY Custom Equity Master
- -------------------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ---------------------------------------------------------------------------------------------------
Dreyfus
Multi-Cap Emerging Worldwide Mid-Cap Stock
Growth Balanced Countries Growth Growth Index
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- -------------------------- -------------------------- -------------- -------------- -------------- --------------------------
For the period For the period For the period For the period For the period For the period
For the year May 3, 2000** For the year May 16, 2000** June 8, 2001** June 8, 2001** June 8, 2001** For the year May 3, 2000**
ended through ended through through through through ended through
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2001 2001 2001 2000
- ------------ -------------- ------------ -------------- -------------- -------------- -------------- ------------ --------------
$ (907) $ (112) $ 569 $ 17 $ (2) $ (3) $ (9) $ 7,130 $ 3,833
(41,378) (2,328) (612) (112) (40) (98) (293) (30,637) (1,247)
9,788 (23,583) 825 229 152 130 901 (15,177) (13,573)
-------- -------- -------- ------- ------ ------ ------- --------- --------
(32,497) (26,023) 782 134 110 29 599 (38,684) (10,987)
-------- -------- -------- ------- ------ ------ ------- --------- --------
343,187 195,640 76,777 7,677 1,757 4,723 12,526 587,939 248,777
(77,595) (17,313) (23,620) (1,041) (236) (682) (1,358) (123,130) (18,450)
-------- -------- -------- ------- ------ ------ ------- --------- --------
265,592 178,327 53,157 6,636 1,521 4,041 11,168 464,809 230,327
-------- -------- -------- ------- ------ ------ ------- --------- --------
233,095 152,304 53,939 6,770 1,631 4,070 11,767 426,125 219,340
152,304 0 6,770 0 0 0 0 219,340 0
-------- -------- -------- ------- ------ ------ ------- --------- --------
$385,399 $152,304 $ 60,709 $ 6,770 $1,631 $4,070 $11,767 $ 645,465 $219,340
======== ======== ======== ======= ====== ====== ======= ========= ========
19,707 0 682 0 0 0 0 23,366 0
52,586 21,605 8,226 789 197 542 1,643 69,968 25,237
(12,023) (1,898) (2,528) (107) (28) (79) (177) (14,750) (1,871)
-------- -------- -------- ------- ------ ------ ------- --------- --------
60,270 19,707 6,380 682 169 463 1,466 78,584 23,366
======== ======== ======== ======= ====== ====== ======= ========= ========
$ (1,019) $ (112) $ 586 $ 17 $ (2) $ (3) $ (9) $ 10,963 $ 3,833
======== ======== ======== ======= ====== ====== ======= ========= ========
F-145
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
------------------------------------------------------
Fidelity Variable Insurance
Products Funds
--------------------------
Dreyfus
Socially VIP
Responsible Growth Growth
Subaccount Subaccount
-------------------------- --------------------------
For the period For the period
For the year May 11, 2000** For the year May 3, 2000**
ended through ended through
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
------------ -------------- ------------ --------------
From operations:
Net investment income (loss)....................................... $ (140) $ 141 $ 10,264 $ (119)
Net realized loss on investments................................... (8,248) (249) (45,170) (949)
Net change in unrealized appreciation (depreciation) of investments (3,277) (2,438) (7,814) (16,097)
-------- ------- --------- --------
Net decrease in net assets resulting from operations................ (11,665) (2,546) (42,720) (17,165)
-------- ------- --------- --------
From unit transactions:
Net proceeds from the issuance of units............................ 91,828 26,874 434,904 161,406
Net asset value of units redeemed or used to meet contract
obligations...................................................... (18,864) (2,934) (102,004) (11,001)
-------- ------- --------- --------
Net increase from unit transactions................................. 72,964 23,940 332,900 150,405
-------- ------- --------- --------
Net increase in net assets.......................................... 61,299 21,394 290,180 133,240
Net assets beginning of period...................................... 21,394 0 133,240 0
-------- ------- --------- --------
Net assets end of period*........................................... $ 82,693 $21,394 $ 423,420 $133,240
======== ======= ========= ========
Unit transactions:
Units outstanding beginning of period............................... 2,344 0 14,902 0
Units issued during the period...................................... 11,940 2,640 56,380 16,021
Units redeemed during the period.................................... (2,536) (296) (13,506) (1,119)
-------- ------- --------- --------
Units outstanding end of period..................................... 11,748 2,344 57,776 14,902
======== ======= ========= ========
- ----------
*Includes undistributed net investment income (loss) of: $ 1 $ 141 $ 10,145 $ (119)
======== ======= ========= ========
** Commencement of operations
See notes to financial statements.
F-146
MONY Custom Equity Master
- --------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds Janus Aspen Series
- ------------------------------------------------------ ------------------------------------------------------
VIP II VIP III Aggressive
Contrafund Growth Opportunities Growth Balanced
Subaccount Subaccount Subaccount Subaccount
- -------------------------- -------------------------- -------------------------- --------------------------
For the period For the period For the period For the period
For the year May 17, 2000** For the year May 11, 2000** For the year May 3, 2000** For the year May 5, 2000**
ended through ended through ended through ended through
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2000 2001 2000
- ------------ -------------- ------------ -------------- ------------ -------------- ------------ --------------
$ 5,232 $ (159) $ (77) $ (23) $ (951) $ 2,208 $ 4,996 $ 1,471
(20,592) (266) (4,908) (295) (89,137) (6,299) (5,465) (896)
(7,442) (6,320) 1,115 (2,170) (23,785) (34,119) (5,338) (1,660)
-------- -------- -------- ------- --------- -------- -------- -------
(22,802) (6,745) (3,870) (2,488) (113,873) (38,210) (5,807) (1,085)
-------- -------- -------- ------- --------- -------- -------- -------
241,564 179,578 54,447 33,729 465,872 206,852 228,701 87,686
(65,363) (9,666) (15,463) (2,991) (99,638) (19,704) (54,763) (6,083)
-------- -------- -------- ------- --------- -------- -------- -------
176,201 169,912 38,984 30,738 366,234 187,148 173,938 81,603
-------- -------- -------- ------- --------- -------- -------- -------
153,399 163,167 35,114 28,250 252,361 148,938 168,131 80,518
163,167 0 28,250 0 148,938 0 80,518 0
-------- -------- -------- ------- --------- -------- -------- -------
$316,566 $163,167 $ 63,364 $28,250 $ 401,299 $148,938 $248,649 $80,518
======== ======== ======== ======= ========= ======== ======== =======
17,007 0 3,045 0 20,212 0 8,160 0
28,573 17,987 6,917 3,345 90,124 22,314 24,202 8,768
(7,791) (980) (1,950) (300) (20,025) (2,102) (5,835) (608)
-------- -------- -------- ------- --------- -------- -------- -------
37,789 17,007 8,012 3,045 90,311 20,212 26,527 8,160
======== ======== ======== ======= ========= ======== ======== =======
$ 5,073 $ (159) $ (100) $ (23) $ 1,257 $ 2,208 $ 6,467 $ 1,471
======== ======== ======== ======= ========= ======== ======== =======
F-147
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Equity Master
----------------------------------------------------------------------------------
Janus Aspen Series
------------------------------------------------------
Capital Worldwide
Appreciation Growth
Subaccount Subaccount Total
-------------------------- -------------------------- --------------------------
For the period For the period
For the year May 3, 2000** For the year May 3, 2000** For the year For the period
ended through ended through ended ended
December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2000
------------ -------------- ------------ -------------- ------------ --------------
From operations:
Net investment income.................... $ 2,383 $ 713 $ 838 $ 2,197 $ 222,202 $ 40,491
Net realized loss on investments......... (34,995) (1,427) (50,896) (3,594) (521,460) (30,335)
Net change in unrealized depreciation of
investments............................ (13,217) (18,689) (28,133) (26,183) (255,895) (193,394)
-------- -------- --------- -------- ----------- ----------
Net decrease in net assets resulting from
operations.............................. (45,829) (19,403) (78,191) (27,580) (555,153) (183,238)
-------- -------- --------- -------- ----------- ----------
From unit transactions:
Net proceeds from the issuance of
units.................................. 273,738 177,591 404,800 273,335 8,085,547 3,197,418
Net asset value of units redeemed or used
to meet contract obligations........... (69,512) (15,463) (102,101) (15,569) (1,991,711) (580,921)
-------- -------- --------- -------- ----------- ----------
Net increase from unit transactions....... 204,226 162,128 302,699 257,766 6,093,836 2,616,497
-------- -------- --------- -------- ----------- ----------
Net increase in net assets................ 158,397 142,725 224,508 230,186 5,538,683 2,433,259
Net assets beginning of period............ 142,725 0 230,186 0 2,433,259 0
-------- -------- --------- -------- ----------- ----------
Net assets end of period*................. $301,122 $142,725 $ 454,694 $230,186 $ 7,971,942 $2,433,259
======== ======== ========= ======== =========== ==========
Unit transactions:
Units outstanding beginning of period..... 17,106 0 27,835 0
Units issued during the period............ 39,167 18,775 58,551 29,513
Units redeemed during the period.......... (10,020) (1,669) (15,226) (1,678)
-------- -------- --------- --------
Units outstanding end of period........... 46,253 17,106 71,160 27,835
======== ======== ========= ========
- ----------
*Includes undistributed net investment
income of: $ 3,096 $ 713 $ 3,035 $ 2,197 $ 262,693 $ 40,491
======== ======== ========= ======== =========== ==========
** Commencement of operations
See notes to financial statements.
F-148
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist), Variable Universal Life (MONYEquity Master,
MONY Custom Equity Master and MONY Custom Estate Master). These policies are
issued by MONY. For presentation purposes, the information related only to the
Variable Universal Life Insurance policies (MONY Custom Equity Master) is
presented here.
There are twenty-eight MONY Custom Equity Master Subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of
the MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Dreyfus Stock Index Fund, Dreyfus Socially Responsible Growth
Fund, Inc., Fidelity Variable Insurance Products Funds, or Janus Aspen Series
(collectively, the "Funds"). Certain subaccounts of MONY Custom Equity Master
commenced operations during the year ended December 31, 2000, and the remaining
subaccounts commenced operations during the period ended December 31, 2001. The
Funds are registered under the 1940 Act as open-end, diversified, management
investment companies. The Fund and Enterprise are affiliated with MONY.
These financial statements should be read in conjunction with the financial
statements and footnotes of the Funds, which were distributed by MONY to the
policyholders.
2. Significant Accounting Policies:
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolio is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the Money Market Portfolio, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income and
distributions of net realized gains are recorded on the ex-dividend date.
Investment income includes dividends from net investment income and
distribution of net realized gains received from the respective portfolios of
the Funds. Dividends and distributions received are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based on
current tax law, to incur any income tax burden upon the earnings or realized
gains attributable to the Variable Account. Based on this expectation, no
charges are currently being deducted from the Variable Account for Federal
income tax purposes.
F-149
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
3. Related Party Transactions:
MONY is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for such purposes for all of the
MONY Custom Equity Master Subaccounts for the period ended December 31, 2001
aggregated $1,649,039.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.35% of the average daily net assets of
each of the MONY Custom Equity Master subaccounts. As MONY Life Insurance
Company of America, a wholly-owned subsidiary of MONY, acts as investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the period ended
December 31, 2001, MONY received $2,565 in connection with MONY Custom Equity
Master subaccounts.
4. Investment Transactions:
Cost of shares acquired and the proceeds from redemption of shares by each
subaccount during the period ended December 31, 2001 were as follows:
Cost of Shares
Acquired
(Excludes Proceeds from
MONY Custom Equity Master Subaccounts Reinvestments) Shares Redeemed
- ------------------------------------- -------------- ---------------
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio............. $ 55,653 $ 13,077
Long Term Bond Portfolio..................... 72,394 24,385
Government Securities Portfolio.............. 96,470 19,299
Money Market Portfolio....................... 2,861,073 1,619,324
Enterprise Accumulation Trust
Equity Portfolio............................. 646,196 158,729
Small Company Value Portfolio................ 247,004 63,061
Managed Portfolio............................ 231,817 46,517
International Growth Portfolio............... 89,632 28,195
High Yield Bond Portfolio.................... 78,829 14,728
Growth Portfolio............................. 541,332 145,080
Growth and Income Portfolio.................. 541,854 127,555
Small Company Growth Portfolio............... 246,690 63,433
F-150
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investment Transactions: (continued)
Cost of Shares
Acquired
(Excludes Proceeds from
MONY Custom Equity Master Subaccounts Reinvestments) Shares Redeemed
- ------------------------------------- -------------- ---------------
Equity Income Portfolio...................... $ 95,983 $ 33,987
Capital Appreciation Portfolio............... 231,402 62,913
Multi-Cap Growth Portfolio................... 357,422 92,771
Balanced Portfolio........................... 93,193 40,147
Emerging Countries Portfolio................. 1,922 403
Worldwide Growth Portfolio................... 4,780 741
Mid-Cap Growth Portfolio..................... 13,175 2,014
Dreyfus
Dreyfus Stock Index Fund..................... 621,460 158,101
Dreyfus Socially Responsible Growth Fund,
Inc........................................ 113,557 40,786
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio......................... 456,240 124,055
VIP II Contrafund Portfolio.................. 261,609 86,299
VIP III Growth Opportunities Portfolio....... 62,330 23,498
Janus Aspen Series
Aggressive Growth Portfolio.................. 496,559 131,304
Balanced Portfolio........................... 241,901 68,586
Capital Appreciation Portfolio............... 301,538 98,151
Worldwide Growth Portfolio................... 432,038 130,624
5. Financial Highlights:
For a unit outstanding throughout the period ended December 31, 2001:
At December 31, 2001 For the period ended December 31, 2001
----------------------------- -------------------------------------
Investment
Net Assets Income Expense Total
MONY Custom Equity Master Subaccounts Units Unit Value (000's) Ratio* Ratio** Return***
- ------------------------------------- ------- ---------- ---------- ---------- ------- ---------
MONY Series Fund, Inc.
Intermediate Term Bond Subaccount............ 5,383 $11.38 $ 61 2.71% 0.35% 8.17%
Long Term Bond Subaccount.................... 5,166 11.65 60 3.22 0.35 5.91
Government Securities Subaccount............. 7,316 11.62 85 1.52 0.35 6.22
Money Market Subaccount...................... 121,626 10.70 1,301 3.02 0.35 3.48
Enterprise Accumulation Trust
Equity Subaccount............................ 93,665 6.87 643 0.00 0.35 (19.08)
Small Company Value Subaccount............... 22,978 11.08 255 0.31 0.35 4.82
Managed Subaccount........................... 31,845 9.17 292 2.72 0.35 (11.49)
International Growth Subaccount.............. 14,206 6.52 93 0.82 0.35 (28.04)
High Yield Bond Subaccount................... 7,695 10.40 80 8.81 0.35 5.48
Growth Subaccount............................ 70,201 8.47 594 0.56 0.35 (12.86)
Growth and Income Subaccount................. 53,806 8.84 476 1.16 0.35 (12.21)
Small Company Growth Subaccount.............. 29,439 9.73 287 0.00 0.35 (4.23)
Equity Income Subaccount..................... 9,356 9.26 87 1.30 0.35 (11.05)
F-151
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights: (continued)
At December 31, 2001 For the period ended December 31, 2001
---------------------------- ----------------------------------
Investment
Net Assets Income Expense Total
MONY Custom Equity Master Subaccounts Units Unit Value (000's) Ratio* Ratio** Return***
- ------------------------------------- ------ ---------- ---------- ---------- ------- ---------
Capital Appreciation Subaccount.............. 33,465 $7.69 $257 0.74% 0.35% (19.39)%
Multi-Cap Growth Subaccount.................. 60,270 6.39 385 0.00 0.35 (17.34)
Balanced Subaccount.......................... 6,380 9.52 61 2.07 0.35 (4.13)
Emerging Countries Subaccount (1)............ 169 9.61 2 0.00(/\) 0.35(/\) (3.90)
Worldwide Growth Subaccount (1).............. 463 8.80 4 0.00(/\) 0.35(/\) (12.00)
Mid-Cap Growth Subaccount (1)................ 1,466 8.03 12 0.00(/\) 0.35(/\) (19.70)
Dreyfus
Dreyfus Stock Index Subaccount............... 78,584 8.21 645 1.28 0.35 (12.57)
Dreyfus Socially Responsible Growth
Subaccount................................. 11,748 7.04 83 0.09 0.35 (22.89)
Fidelity Variable Insurance Products Funds
VIP Growth Subaccount........................ 57,776 7.33 423 0.00 0.35 (18.01)
VIP II Contrafund Subaccount................. 37,789 8.38 317 0.51 0.35 (12.62)
VIP III Growth Opportunities Subaccount...... 8,012 7.91 63 0.16 0.35 (14.76)
Janus Aspen Series
Aggressive Growth Subaccount................. 90,311 4.44 401 0.00 0.35 (39.76)
Balanced Subaccount.......................... 26,527 9.37 249 3.19 0.35 (5.07)
Capital Appreciation Subaccount.............. 46,253 6.51 301 1.41 0.35 (21.94)
Worldwide Growth Subaccount.................. 71,160 6.39 455 0.59 0.35 (22.73)
- ----------
* This ratio represents the amount of dividend income, excluding
distributions from net realized gains, received by the subaccount from the
underlying fund, net of investment advisory fees assessed by the underlying
fund's investment adviser and other expenses of the underlying fund,
divided by the average net assets of the subaccount. These ratios exclude
those expenses, such as mortality and expense charges, that result in
direct reductions in the net asset value per Unit. The recognition of
dividend income by the subaccount is affected by the timing of the
declaration of dividends by the underlying fund in which the subaccounts
invest.
** This ratio represents the annual contract expenses of the separate account,
consisting primarily of mortality and expense charges, for each period
indicated. The ratio includes only those expenses that result in a direct
reduction to net asset value per Unit. Charges made directly to
contractholder accounts by redemption of Units and expenses of the
respective underlying fund are excluded from this ratio.
*** Represents the total return for the period indicated, including changes in
the value of the underlying fund, and reflect deductions for all items
included in the Expense Ratio. The Total Return does not include any
expenses assessed through the redemption of Units; the Total Return would
have been lower had such expenses been included in the calculation. Total
returns for periods less than one year are not annualized.
(/\) Annualized
(1) For the period June 8, 2001 (commencement of operations) through December
31, 2001.
F-152
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account L -- MONY Custom Estate Master
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of MONY Custom Estate Master's Subaccounts of MONY Variable Account L at
December 31, 2001, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
MONY Life Insurance Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, 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, which included confirmation
of investments at December 31, 2001 by correspondence with the underlying
funds' transfer agents, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
April 12, 2002
F-153
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-154
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2001
MONY Custom Estate Master
---------------------------------------------
MONY Series Fund, Inc.
---------------------------------------------
Intermediate Long Term Government Money
Term Bond Bond Securities Market
Subaccount Subaccount Subaccount Subaccount
------------ ---------- ---------- ----------
ASSETS
Shares held in respective Funds.. 87 851 394 383,134
====== ======= ====== ========
Investments at cost.............. $ 962 $11,059 $4,426 $383,134
====== ======= ====== ========
Investments in respective Funds,
at net asset value............. $ 975 $11,384 $4,520 $383,134
Amount due from MONY............. 0 0 0 0
------ ------- ------ --------
Total assets.............. 975 11,384 4,520 383,134
------ ------- ------ --------
LIABILITIES
Amount due to respective Funds... 0 0 0 0
Amount due to MONY............... 0 2 1 65
------ ------- ------ --------
Total liabilities......... 0 2 1 65
------ ------- ------ --------
Net assets....................... $ 975 $11,382 $4,519 $383,069
====== ======= ====== ========
Net assets consist of:
Contractholders' net payments.. $ 960 $10,529 $4,417 $374,468
Undistributed net investment
income (loss)................. (1) 488 5 8,601
Accumulated net realized gain
on investments................ 3 40 3 0
Net unrealized appreciation of
investments................... 13 325 94 0
------ ------- ------ --------
Net assets....................... $ 975 $11,382 $4,519 $383,069
====== ======= ====== ========
Number of units outstanding*..... 93 1,011 434 35,225
------ ------- ------ --------
Net asset value per unit
outstanding*................... $10.52 $ 11.26 $10.41 $ 10.88
====== ======= ====== ========
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-155
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
December 31, 2001
MONY Custom Estate Master
------------------------------------------------
Enterprise Accumulation Trust
------------------------------------------------
Small Company International
Equity Value Managed Growth
Subaccount Subaccount Subaccount Subaccount
---------- ------------- ---------- -------------
ASSETS
Shares held in respective
Funds....................... 3,154 2,278 732 5,666
======== ======= ======= =======
Investments at cost........... $ 65,240 $51,889 $15,805 $32,085
======== ======= ======= =======
Investments in respective
Funds, at net asset value... $ 54,690 $44,630 $14,356 $24,535
Amount due from MONY.......... 0 6 0 6
-------- ------- ------- -------
Total assets........... 54,690 44,636 14,356 24,541
-------- ------- ------- -------
LIABILITIES
Amount due to respective Funds 0 6 0 6
Amount due to MONY............ 10 8 2 4
-------- ------- ------- -------
Total liabilities...... 10 14 2 10
-------- ------- ------- -------
Net assets.................... $ 54,680 $44,622 $14,354 $24,531
======== ======= ======= =======
Net assets consist of:
Contractholders' net
payments................... $ 60,510 $43,400 $14,987 $30,533
Undistributed net
investment income (loss)... 10,865 11,550 1,707 2,855
Accumulated net realized
gain (loss) on investments. (6,145) (3,069) (891) (1,307)
Net unrealized appreciation
(depreciation) of
investments................ (10,550) (7,259) (1,449) (7,550)
-------- ------- ------- -------
Net assets.................... $ 54,680 $44,622 $14,354 $24,531
======== ======= ======= =======
Number of units outstanding*.. 6,726 4,236 1,617 4,047
-------- ------- ------- -------
Net asset value per unit
outstanding*................ $ 8.13 $ 10.54 $ 8.88 $ 6.06
======== ======= ======= =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-156
MONY Custom Estate Master
- --------------------------------------------------------------------------------
Enterprise Accumulation Trust
- --------------------------------------------------------------------------------
High Yield Growth and Small Company Equity Capital Multi-Cap
Bond Growth Income Growth Income Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ---------- ---------- ---------- ------------- ---------- ------------ ----------
2,342 11,491 5,761 3,652 2,480 4,779 6,288
======= ======= ======= ======= ======= ======= =======
$10,770 $63,063 $33,507 $28,571 $12,949 $31,076 $58,881
======= ======= ======= ======= ======= ======= =======
$10,162 $59,870 $31,164 $28,741 $12,451 $27,194 $53,004
0 0 0 6 0 6 6
------- ------- ------- ------- ------- ------- -------
10,162 59,870 31,164 28,747 12,451 27,200 53,010
------- ------- ------- ------- ------- ------- -------
0 0 0 6 0 6 6
2 10 5 5 2 5 9
------- ------- ------- ------- ------- ------- -------
2 10 5 11 2 11 15
------- ------- ------- ------- ------- ------- -------
$10,160 $59,860 $31,159 $28,736 $12,449 $27,189 $52,995
======= ======= ======= ======= ======= ======= =======
$ 9,848 $65,637 $33,945 $27,897 $12,675 $31,855 $63,241
972 262 170 842 77 556 (170)
(52) (2,846) (613) (173) 195 (1,340) (4,199)
(608) (3,193) (2,343) 170 (498) (3,882) (5,877)
------- ------- ------- ------- ------- ------- -------
$10,160 $59,860 $31,159 $28,736 $12,449 $27,189 $52,995
======= ======= ======= ======= ======= ======= =======
1,004 7,125 3,587 2,949 1,282 3,721 9,181
------- ------- ------- ------- ------- ------- -------
$ 10.12 $ 8.40 $ 8.69 $ 9.74 $ 9.71 $ 7.31 $ 5.77
======= ======= ======= ======= ======= ======= =======
F-157
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
December 31, 2001
MONY Custom Estate Master
---------------------------------------------------
Enterprise Accumulation Trust
-----------------------------
Dreyfus
Dreyfus Socially
Mid-Cap Stock Responsible
Balanced Growth Index Growth
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- -----------
ASSETS
Shares held in respective
Funds....................... 80 2 2,844 552
====== ====== ======= =======
Investments at cost........... $ 379 $ 14 $90,984 $16,187
====== ====== ======= =======
Investments in respective
Funds, at net asset value... $ 391 $ 14 $83,515 $14,729
Amount due from MONY.......... 0 0 0 0
------ ------ ------- -------
Total assets........... 391 14 83,515 14,729
------ ------ ------- -------
LIABILITIES
Amount due to respective Funds 0 0 0 0
Amount due to MONY............ 0 0 14 2
------ ------ ------- -------
Total liabilities...... 0 0 14 2
------ ------ ------- -------
Net assets.................... $ 391 $ 14 $83,501 $14,727
====== ====== ======= =======
Net assets consist of:
Contractholders' net
payments................... $ 372 $ 14 $91,794 $17,740
Undistributed net
investment income.......... 6 0 1,425 21
Accumulated net realized
gain (loss) on investments. 1 0 (2,249) (1,576)
Net unrealized appreciation
(depreciation) of
investments................ 12 0 (7,469) (1,458)
------ ------ ------- -------
Net assets.................... $ 391 $ 14 $83,501 $14,727
====== ====== ======= =======
Number of units outstanding*.. 37 1 10,189 2,190
------ ------ ------- -------
Net asset value per unit
outstanding*................ $10.51 $10.58 $ 8.20 $ 6.72
====== ====== ======= =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-158
MONY Custom Estate Master
- ----------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds Janus Aspen Series
- ------------------------------------------ --------------------------------------------
VIP III
VIP VIP II Growth Aggressive Capital Worldwide
Growth Contrafund Opportunities Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ---------- ---------- ------------- ---------- ---------- ------------ ---------- ----------
2,085 2,097 1,201 1,583 1,556 2,127 2,361
======= ======= ======= ======= ======= ======= =======
$76,366 $44,987 $18,841 $43,507 $36,460 $52,004 $75,746 $1,258,892
======= ======= ======= ======= ======= ======= ======= ==========
$69,817 $42,059 $18,148 $34,796 $35,119 $44,072 $67,377 $1,170,847
0 6 6 6 0 6 6 60
------- ------- ------- ------- ------- ------- ------- ----------
69,817 42,065 18,154 34,802 35,119 44,078 67,383 1,170,907
------- ------- ------- ------- ------- ------- ------- ----------
0 6 6 6 0 6 6 60
11 7 3 6 6 8 11 198
------- ------- ------- ------- ------- ------- ------- ----------
11 13 9 12 6 14 17 258
------- ------- ------- ------- ------- ------- ------- ----------
$69,806 $42,052 $18,145 $34,790 $35,113 $44,064 $67,366 $1,170,649
======= ======= ======= ======= ======= ======= ======= ==========
$78,260 $45,413 $19,521 $52,496 $36,005 $54,461 $81,073 $1,262,051
1,606 657 80 813 928 557 968 45,840
(3,511) (1,090) (763) (9,808) (479) (3,022) (6,306) (49,197)
(6,549) (2,928) (693) (8,711) (1,341) (7,932) (8,369) (88,045)
------- ------- ------- ------- ------- ------- ------- ----------
$69,806 $42,052 $18,145 $34,790 $35,113 $44,064 $67,366 $1,170,649
======= ======= ======= ======= ======= ======= ======= ==========
9,189 5,132 2,459 9,449 3,671 7,623 10,066
------- ------- ------- ------- ------- ------- -------
$ 7.60 $ 8.19 $ 7.38 $ 3.68 $ 9.57 $ 5.78 $ 6.69
======= ======= ======= ======= ======= ======= =======
F-159
MONY
Variable Account L
STATEMENT OF OPERATIONS
MONY Custom Estate Master
---------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
------------------------------------------------------------ -------------------------------------
Small
Intermediate Long Term Government Money Company
Term Bond Bond Securities Market Equity Value Managed
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
----------------- ------------ ----------------- ------------ ------------ ------------ ------------
For the period For the For the period For the For the year For the year For the year
April 2, 2001** year ended March 14, 2001** year ended ended ended ended
through December 31, through December 31, December 31, December 31, December 31,
December 31, 2001 2001 December 31, 2001 2001 2001 2001 2001
----------------- ------------ ----------------- ------------ ------------ ------------ ------------
Dividend income..... $ 0 $530 $ 12 $6,535 $ 0 $ 94 $ 315
Distribution from
net realized gains 0 0 0 0 8,790 9,531 755
Mortality and
expense risk
charges........... (1) (36) (7) (708) (142) (111) (40)
--- ---- ---- ------ -------- ------- -------
Net investment
income (loss)..... (1) 494 5 5,827 8,648 9,514 1,030
--- ---- ---- ------ -------- ------- -------
Realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss) on
investments...... 3 37 3 0 (3,785) (804) (835)
Net change in
unrealized
appreciation
(depreciation)
of investments... 13 60 94 0 (9,555) (7,126) (846)
--- ---- ---- ------ -------- ------- -------
Net realized and
unrealized gain
(loss) on
investments....... 16 97 97 0 (13,340) (7,930) (1,681)
--- ---- ---- ------ -------- ------- -------
Net increase
(decrease) in net
assets resulting
from operations... $15 $591 $102 $5,827 $ (4,692) $ 1,584 $ (651)
=== ==== ==== ====== ======== ======= =======
- ----------
** Commencement of operations
See notes to financial statements.
F-160
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the year ended December 31, 2001
MONY Custom Estate Master
--------------------------------------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------------------------------------
Growth Small
International High Yield and Company Equity Capital
Growth Bond Growth Income Growth Income Appreciation
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
------------- ---------- ---------- ---------- ---------- ---------- ------------
Dividend income............... $ 146 $ 854 $ 219 $ 242 $ 0 $ 99 $ 160
Distribution from net
realized gains.............. 2,262 0 0 0 883 0 0
Mortality and expense risk
charges..................... (72) (34) (151) (78) (75) (43) (78)
------- ----- ------- ------- ----- ------- -------
Net investment income......... 2,336 820 68 164 808 56 82
------- ----- ------- ------- ----- ------- -------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ (1,178) (47) (2,634) (617) (201) 171 (1,204)
Net change in unrealized
appreciation
(depreciation) of
investments................ (6,782) (290) (2,248) (2,117) 299 (1,073) (2,724)
------- ----- ------- ------- ----- ------- -------
Net realized and unrealized
gain (loss) on investments.. (7,960) (337) (4,882) (2,734) 98 (902) (3,928)
------- ----- ------- ------- ----- ------- -------
Net increase (decrease) in
net assets resulting from
operations.................. $(5,624) $(483) $(4,814) $(2,570) $ 906 $ (846) $(3,846)
======= ===== ======= ======= ===== ======= =======
See notes to financial statements.
F-161
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
MONY Custom Estate Master
---------------------------------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------
Dreyfus
Dreyfus Socially
Multi-Cap Mid-Cap Stock Responsible
Growth Balanced Growth Index Growth
Subaccount Subaccount Subaccount Subaccount Subaccount
------------ ----------------- ------------------- ------------ ------------
For the year For the period For the period For the year For the year
ended April 2, 2001** November 21, 2001** ended ended
December 31, through through December 31, December 31,
2001 December 31, 2001 December 31, 2001 2001 2001
------------ ----------------- ------------------- ------------ ------------
Dividend income............... $ 0 $ 6 $0 $ 259 $ 9
Distribution from net 863
realized gains.............. 0 0 0 0
Mortality and expense risk (186)
charges..................... (146) 0 0 (33)
------- --- -- ------- -------
Net investment income (loss).. (146) 6 0 936 (24)
------- --- -- ------- -------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on (2,187)
investments................ (3,729) 1 0 (1,078)
Net change in unrealized
appreciation
(depreciation) of
investments................ (1,686) 12 0 (4,494) (998)
------- --- -- ------- -------
Net realized and unrealized
gain (loss) on investments.. (5,415) 13 0 (6,681) (2,076)
------- --- -- ------- -------
Net increase (decrease) in
net assets resulting from
operations.................. $(5,561) $19 $0 $(5,745) $(2,100)
======= === == ======= =======
- ----------
** Commencement of operations
See notes to financial statements.
F-162
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
For the year ended December 31, 2001
MONY Custom Estate Master
----------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Funds Janus Aspen Series
----------------------------------------- --------------------------------------------
VIP III
VIP VIP II Growth Aggressive Capital Worldwide
Growth Contrafund Opportunities Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ------------- ---------- ---------- ------------ ----------
Dividend income................ $ 0 $ 154 $ 20 $ 0 $ 803 $ 584 $ 290
Distribution from net
realized gains............... 1,639 614 0 0 0 0 0
Mortality and expense risk
charges...................... (180) (96) (42) (96) (90) (130) (159)
------- ------- ------- -------- ------- ------- --------
Net investment income (loss)... 1,459 672 (22) (96) 713 454 131
------- ------- ------- -------- ------- ------- --------
Realized and unrealized gain
(loss) on investments:
Net realized loss on
investments................. (3,339) (855) (730) (9,172) (456) (2,907) (4,931)
Net change in unrealized
depreciation of investments. (5,686) (2,521) (392) (3,445) (1,161) (5,696) (5,308)
------- ------- ------- -------- ------- ------- --------
Net realized and unrealized
loss on investments.......... (9,025) (3,376) (1,122) (12,617) (1,617) (8,603) (10,239)
------- ------- ------- -------- ------- ------- --------
Net decrease in net assets
resulting from operations.... $(7,566) $(2,704) $(1,144) $(12,713) $ (904) $(8,149) $(10,108)
======= ======= ======= ======== ======= ======= ========
Total
---------
Dividend income................ $ 11,331
Distribution from net
realized gains............... 25,337
Mortality and expense risk
charges...................... (2,734)
---------
Net investment income (loss)... 33,934
---------
Realized and unrealized gain
(loss) on investments:
Net realized loss on
investments................. (40,474)
Net change in unrealized
depreciation of investments. (63,670)
---------
Net realized and unrealized
loss on investments.......... (104,144)
---------
Net decrease in net assets
resulting from operations.... $ (70,210)
=========
See notes to financial statements.
F-163
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
MONY Custom Estate Master
-----------------------------------------------------------------
MONY Series Fund, Inc.
-----------------------------------------------------------------
Intermediate Long Term Government
Term Bond Bond Securities
Subaccount Subaccount Subaccount
----------------- ----------------------------- -----------------
For the period For the For the period For the period
April 2, 2001** year ended August 8, 2000** March 14, 2001**
through December 31, through through
December 31, 2001 2001 December 31, 2000 December 31, 2001
----------------- ------------ ----------------- -----------------
From operations:
Net investment income (loss). $ (1) $ 494 $ (6) $ 5
Net realized gain (loss) on
investments................ 3 37 3 3
Net change in unrealized
appreciation
(depreciation) of
investments................ 13 60 265 94
------ ------- ------ ------
Net increase (decrease) in
net assets resulting from
operations................... 15 591 262 102
------ ------- ------ ------
From unit transactions:
Net proceeds from the
issuance of units.......... 1,045 2,505 8,905 5,006
Net asset value of units
redeemed or used to meet
contract obligations....... (85) (593) (288) (589)
------ ------- ------ ------
Net increase from unit
transactions................. 960 1,912 8,617 4,417
------ ------- ------ ------
Net increase in net assets.... 975 2,503 8,879 4,519
Net assets beginning of period 0 8,879 0 0
------ ------- ------ ------
Net assets end of period*..... $ 975 $11,382 $8,879 $4,519
====== ======= ====== ======
Unit transactions:
Units outstanding beginning
of period.................... 0 835 0 0
Units issued during the period 101 230 864 492
Units redeemed during the
period....................... (8) (54) (29) (58)
------ ------- ------ ------
Units outstanding end of
period....................... 93 1,011 835 434
====== ======= ====== ======
- ----------
* Includes undistributed net
investment income (loss)
of: $ (1) $ 488 $ (6) $ 5
====== ======= ====== ======
** Commencement of operations
See notes to financial statements.
F-164
MONY Custom Estate Master
- ----------------------------------------------------------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
- ------------------------------- -------------------------------------------------------------------------------------------
Money Small Company
Market Equity Value Managed
Subaccount Subaccount Subaccount Subaccount
- ------------------------------- ----------------------------- ----------------------------- -----------------------------
For the For the period For the For the period For the For the period For the For the period
year ended February 11, 2000** year ended January 4, 2000** year ended April 10, 2000** year ended April 10, 2000**
December 31, through December 31, through December 31, through December 31, through
2001 December 31, 2000 2001 December 31, 2000 2001 December 31, 2000 2001 December 31, 2000
- ------------ ------------------- ------------ ----------------- ------------ ----------------- ------------ -----------------
$ 5,827 $ 2,774 $ 8,648 $ 2,217 $ 9,514 $ 2,036 $ 1,030 $ 677
0 0 (3,785) (2,360) (804) (2,265) (835) (56)
0 0 (9,555) (995) (7,126) (133) (846) (603)
-------- ------- ------- ------- ------- ------- ------- ------
5,827 2,774 (4,692) (1,138) 1,584 (362) (651) 18
-------- ------- ------- ------- ------- ------- ------- ------
356,079 94,370 56,343 11,044 31,688 16,452 17,719 2,563
(67,279) (8,702) (6,293) (584) (4,129) (611) (5,076) (219)
-------- ------- ------- ------- ------- ------- ------- ------
288,800 85,668 50,050 10,460 27,559 15,841 12,643 2,344
-------- ------- ------- ------- ------- ------- ------- ------
294,627 88,442 45,358 9,322 29,143 15,479 11,992 2,362
88,442 0 9,322 0 15,479 0 2,362 0
-------- ------- ------- ------- ------- ------- ------- ------
$383,069 $88,442 $54,680 $ 9,322 $44,622 $15,479 $14,354 $2,362
======== ======= ======= ======= ======= ======= ======= ======
8,412 0 928 0 1,541 0 236 0
33,096 9,254 6,560 978 3,125 1,602 1,912 258
(6,283) (842) (762) (50) (430) (61) (531) (22)
-------- ------- ------- ------- ------- ------- ------- ------
35,225 8,412 6,726 928 4,236 1,541 1,617 236
======== ======= ======= ======= ======= ======= ======= ======
$ 8,601 $ 2,774 $10,865 $ 2,217 $11,550 $ 2,036 $ 1,707 $ 677
======== ======= ======= ======= ======= ======= ======= ======
F-165
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
------------------------------------------------------------
Enterprise Accumulation Trust
------------------------------------------------------------
International High Yield
Growth Bond
Subaccount Subaccount
----------------------------- -----------------------------
For the For the period For the For the period
year ended January 4, 2000** year ended August 8, 2000**
December 31, through December 31, through
2001 December 31, 2000 2001 December 31, 2000
------------ ----------------- ------------ -----------------
From operations:
Net investment income........ $ 2,336 $ 519 $ 820 $ 152
Net realized gain (loss) on
investments................ (1,178) (129) (47) (5)
Net change in unrealized
appreciation
(depreciation) of
investments................ (6,782) (768) (290) (318)
------- ------- ------- ------
Net increase (decrease) in
net assets resulting from
operations................... (5,624) (378) 483 (171)
------- ------- ------- ------
From unit transactions:
Net proceeds from the
issuance of units.......... 17,902 14,909 1,541 9,116
Net asset value of units
redeemed or used to meet
contract obligations....... (1,581) (697) (520) (289)
------- ------- ------- ------
Net increase (decrease) from
unit transactions............ 16,321 14,212 1,021 8,827
------- ------- ------- ------
Net increase (decrease) in
net assets................... 10,697 13,834 1,504 8,656
Net assets beginning of period 13,834 0 8,656 0
------- ------- ------- ------
Net assets end of period*..... $24,531 $13,834 $10,160 $8,656
======= ======= ======= ======
Unit transactions:
Units outstanding beginning
of period.................... 1,641 0 903 0
Units issued during the period 2,656 1,720 153 932
Units redeemed during the
period....................... (250) (79) (52) (29)
------- ------- ------- ------
Units outstanding end of
period....................... 4,047 1,641 1,004 903
======= ======= ======= ======
- ----------
* Includes undistributed net
investment income of: $ 2,855 $ 519 $ 972 $ 152
======= ======= ======= ======
** Commencement of operations
See notes to financial statements.
F-166
MONY Custom Estate Master
- ---------------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ---------------------------------------------------------------------------------------------------------------------------
Growth and Small Company Equity
Growth Income Growth Income
Subaccount Subaccount Subaccount Subaccount
- ----------------------------- ----------------------------- ------------------------------ -----------------------------
For the For the period For the For the period For the For the period For the For the period
year ended January 4, 2000** year ended May 30, 2000** year ended January 14, 2000** year ended April 10, 2000**
December 31, through December 31, through December 31, through December 31, through
2001 December 31, 2000 2001 December 31, 2000 2001 December 31, 2000 2001 December 31, 2000
- ------------ ----------------- ------------ ----------------- ------------ ------------------ ------------ -----------------
$ 68 $ 194 $ 164 $ 6 $ 808 $ 34 $ 56 $ 21
(2,634) (212) (617) 4 (201) 28 171 24
(2,248) (945) (2,117) (226) 299 (129) (1,073) 575
-------- ------- ------- ------- ------- ------- ------- -------
(4,814) (963) (2,570) (216) 906 (67) (846) 620
-------- ------- ------- ------- ------- ------- ------- -------
45,363 34,869 26,778 12,945 19,290 11,855 8,126 14,497
(11,723) (2,872) (4,593) (1,185) (2,384) (864) (9,172) (776)
-------- ------- ------- ------- ------- ------- ------- -------
33,640 31,997 22,185 11,760 16,906 10,991 (1,046) 13,721
-------- ------- ------- ------- ------- ------- ------- -------
28,826 31,034 19,615 11,544 17,812 10,924 (1,892) 14,341
31,034 0 11,544 0 10,924 0 14,341 0
-------- ------- ------- ------- ------- ------- ------- -------
$ 59,860 $31,034 $31,159 $11,544 $28,736 $10,924 $12,449 $14,341
======== ======= ======= ======= ======= ======= ======= =======
3,218 0 1,167 0 1,074 0 1,313 0
5,303 3,517 2,935 1,285 2,140 1,158 839 1,388
(1,396) (299) (515) (118) (265) (84) (870) (75)
-------- ------- ------- ------- ------- ------- ------- -------
7,125 3,218 3,587 1,167 2,949 1,074 1,282 1,313
======== ======= ======= ======= ======= ======= ======= =======
$ 262 $ 194 $ 170 $ 6 $ 842 $ 34 $ 77 $ 21
======== ======= ======= ======= ======= ======= ======= =======
F-167
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
--------------------------------------------------------------
Enterprise Accumulation Trust
--------------------------------------------------------------
Capital Multi-Cap
Appreciation Growth
Subaccount Subaccount
------------------------------ ------------------------------
For the For the period For the For the period
year ended January 14, 2000** year ended January 14, 2000**
December 31, through December 31, through
2001 December 31, 2000 2001 December 31, 2000
------------ ------------------ ------------ ------------------
From operations:
Net investment income (loss). $ 82 $ 474 $ (146) $ (24)
Net realized gain (loss) on
investments................ (1,204) (136) (3,729) (470)
Net change in unrealized
appreciation
(depreciation) of
investments................ (2,724) (1,158) (1,686) (4,191)
------- ------- ------- -------
Net increase (decrease) in
net assets resulting from
operations................... (3,846) (820) (5,561) (4,685)
------- ------- ------- -------
From unit transactions:
Net proceeds from the
issuance of units.......... 21,985 14,168 44,917 25,784
Net asset value of units
redeemed or used to meet
contract obligations....... (3,056) (1,242) (6,053) (1,407)
------- ------- ------- -------
Net increase from unit
transactions................. 18,929 12,926 38,864 24,377
------- ------- ------- -------
Net increase in net assets.... 15,083 12,106 33,303 19,692
Net assets beginning of period 12,106 0 19,692 0
------- ------- ------- -------
Net assets end of period*..... $27,189 $12,106 $52,995 $19,692
======= ======= ======= =======
Unit transactions:
Units outstanding beginning
of period.................... 1,335 0 2,823 0
Units issued during the period 2,811 1,465 7,402 2,987
Units redeemed during the
period....................... (425) (130) (1,044) (164)
------- ------- ------- -------
Units outstanding end of
period....................... 3,721 1,335 9,181 2,823
======= ======= ======= =======
- ----------
* Includes undistributed net
investment income (loss)
of: $ 556 $ 474 $ (170) $ (24)
======= ======= ======= =======
** Commencement of operations
See notes to financial statements.
F-168
MONY Custom Estate Master
- ------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ------------------------------------
Dreyfus Dreyfus
Stock Socially
Balanced Mid-Cap Growth Index Responsible Growth
Subaccount Subaccount Subaccount Subaccount
- ----------------- ------------------- ----------------------------- --------------------------------
For the period For the period For the For the period For the For the period
April 2, 2001** November 21, 2001** year ended May 3, 2000** year ended September 13, 2000**
through through December 31, through December 31, through
December 31, 2001 December 31, 2001 2001 December 31, 2000 2001 December 31, 2000
- ----------------- ------------------- ------------ ----------------- ------------ --------------------
$ 6 $ 0 $ 936 $ 489 $ (24) $ 45
1 0 (2,187) (62) (1,078) (498)
12 0 (4,494) (2,975) (998) (460)
---- ---- ------- ------- ------- ------
19 0 (5,745) (2,548) (2,100) (913)
---- ---- ------- ------- ------- ------
434 28 69,752 31,078 12,202 7,427
(62) (14) (7,098) (1,938) (1,622) (267)
---- ---- ------- ------- ------- ------
372 14 62,654 29,140 10,580 7,160
---- ---- ------- ------- ------- ------
391 14 56,909 26,592 8,480 6,247
0 0 26,592 0 6,247 0
---- ---- ------- ------- ------- ------
$391 $ 14 $83,501 $26,592 $14,727 $6,247
==== ==== ======= ======= ======= ======
0 0 2,839 0 717 0
43 2 8,193 3,033 1,698 746
(6) (1) (843) (194) (225) (29)
---- ---- ------- ------- ------- ------
37 1 10,189 2,839 2,190 717
==== ==== ======= ======= ======= ======
$ 6 $ 0 $ 1,425 $ 489 $ 21 $ 45
==== ==== ======= ======= ======= ======
Fidelity Variable Insurance
Products Funds
- -----------------------------
VIP
Growth
Subaccount
- -----------------------------
For the For the period
year ended January 4, 2000**
December 31, through
2001 December 31, 2000
- ------------ -----------------
$ 1,459 $ 147
(3,339) (172)
(5,686) (863)
------- ------
(7,566) (888)
------- ------
77,497 9,608
(8,000) (845)
------- ------
69,497 8,763
------- ------
61,931 7,875
7,875 0
------- ------
$69,806 $7,875
======= ======
850 0
9,350 931
(1,011) (81)
------- ------
9,189 850
======= ======
1,606 $ 147
======= ======
F-169
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONY Custom Estate Master
------------------------------------------------------------
Fidelity Variable Insurance Products Funds
------------------------------------------------------------
VIP II VIP III
Contrafund Growth Opportunities
Subaccount Subaccount
----------------------------- -----------------------------
For the For the period For the For the period
year ended July 6, 2000** year ended January 4, 2000**
December 31, through December 31, through
2001 December 31, 2000 2001 December 31, 2000
------------ ----------------- ------------ -----------------
From operations:
Net investment income (loss)........... $ 672 $ (15) $ (22) $ 102
Net realized loss on investments....... (855) (235) (730) (33)
Net change in unrealized depreciation
of investments....................... (2,521) (407) (392) (301)
------- ------- ------- ------
Net increase (decrease) in net assets
resulting from operations.............. (2,704) (657) (1,144) (232)
------- ------- ------- ------
From unit transactions:
Net proceeds from the issuance of units 34,282 15,297 16,439 4,853
Net asset value of units redeemed or
used to meet contract obligations.... (3,472) (694) (1,440) (331)
------- ------- ------- ------
Net increase from unit transactions..... 30,810 14,603 14,999 4,522
------- ------- ------- ------
Net increase in net assets.............. 28,106 13,946 13,855 4,290
Net assets beginning of period.......... 13,946 0 4,290 0
------- ------- ------- ------
Net assets end of period*............... $42,052 $13,946 $18,145 $4,290
======= ======= ======= ======
Unit transactions:
Units outstanding beginning of period... 1,486 0 496 0
Units issued during the period.......... 4,057 1,558 2,154 530
Units redeemed during the period........ (411) (72) (191) (34)
------- ------- ------- ------
Units outstanding end of period......... 5,132 1,486 2,459 496
======= ======= ======= ======
- ----------
* Includes undistributed net
investment income (loss) of: $ 657 $ (15) $ 80 $ 102
======= ======= ======= ======
** Commencement of operations
See notes to financial statements.
F-170
MONY Custom Estate Master
- ---------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
- --------------------------------------------------------------------------------------------------------------------------
Aggressive Capital Worldwide
Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount
- ----------------------------- ----------------------------- ----------------------------- -----------------------------
For the For the period For the For the period For the For the period For the For the period
year ended April 7, 2000** year ended January 4, 2000** year ended April 7, 2000** year ended January 4, 2000**
December 31, through December 31, through December 31, through December 31, through
2001 December 31, 2000 2001 December 31, 2000 2001 December 31, 2000 2001 December 31, 2000
- ------------ ----------------- ------------ ----------------- ------------ ----------------- ------------ -----------------
$ (96) $ 909 $ 713 $ 215 $ 454 $ 103 $ 131 $ 837
(9,172) (636) (456) (23) (2,907) (115) (4,931) (1,375)
(3,445) (5,266) (1,161) (180) (5,696) (2,236) (5,308) (3,061)
-------- ------- ------- ------ ------- ------- -------- -------
(12,713) (4,993) (904) 12 (8,149) (2,248) (10,108) (3,599)
-------- ------- ------- ------ ------- ------- -------- -------
40,375 18,599 34,764 6,569 45,861 15,710 62,365 28,087
(5,189) (1,289) (4,874) (454) (5,894) (1,216) (7,786) (1,593)
-------- ------- ------- ------ ------- ------- -------- -------
35,186 17,310 29,890 6,115 39,967 14,494 54,579 26,494
-------- ------- ------- ------ ------- ------- -------- -------
22,473 12,317 28,986 6,127 31,818 12,246 44,471 22,895
12,317 0 6,127 0 12,246 0 22,895 0
-------- ------- ------- ------ ------- ------- -------- -------
$ 34,790 $12,317 $35,113 $6,127 $44,064 $12,246 $ 67,366 $22,895
======== ======= ======= ====== ======= ======= ======== =======
2,017 0 608 0 1,653 0 2,643 0
8,696 2,178 3,571 652 6,927 1,798 8,523 2,807
(1,264) (161) (508) (44) (957) (145) (1,100) (164)
-------- ------- ------- ------ ------- ------- -------- -------
9,449 2,017 3,671 608 7,623 1,653 10,066 2,643
======== ======= ======= ====== ======= ======= ======== =======
$ 813 $ 909 $ 928 $ 215 $ 557 $ 103 $ 968 $ 837
======== ======= ======= ====== ======= ======= ======== =======
Total
- ------------------------
For the For the
year ended period ended
December 31, December 31,
2001 2000
- ------------ ------------
$ 33,934 $ 11,906
(40,474) (8,723)
(63,670) (24,375)
---------- --------
(70,210) (21,192)
---------- --------
1,050,286 408,705
(168,577) (28,363)
---------- --------
881,709 380,342
---------- --------
811,499 359,150
359,150 0
---------- --------
$1,170,649 $359,150
========== ========
$ 45,840 $ 11,906
========== ========
F-171
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist), Variable Universal Life (MONYEquity Master,
MONY Custom Equity Master and MONY Custom Estate Master). These policies are
issued by MONY. For presentation purposes, the information related only to the
Variable Universal Life Insurance policies (MONY Custom Estate Master) is
presented here.
There are twenty-six MONY Custom Estate Master Subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of
the MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Dreyfus Stock Index Fund, Dreyfus Socially Responsible Growth
Fund, Inc., Fidelity Variable Insurance Products Funds, or Janus Aspen Series
(collectively, the "Funds"). Certain subaccounts of MONY Custom Estate Master
commenced operations during the year ended December 31, 2000 and the remaining
subaccounts commenced operations during the period ended December 31, 2001. The
Funds are registered under the 1940 Act as open-end, diversified, management
investment companies. The Fund and Enterprise are affiliated with MONY.
These financial statements should be read in conjunction with the financial
statements and footnotes of the Funds, which were distributed by MONY to the
policyholders.
2. Significant Accounting Policies:
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolio is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the Money Market Portfolio, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income and
distributions of net realized gains are recorded on the ex-dividend date.
Investment income includes dividends from net investment income and
distribution of net realized gains received from the respective portfolios of
the Funds. Dividends and distributions received are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based on
current tax law, to incur any income tax burden upon the earnings or realized
gains attributable to the Variable Account. Based on this expectation, no
charges are currently being deducted from the Variable Account for Federal
income tax purposes.
F-172
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
3. Related Party Transactions:
MONY is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for such purposes for all of the
MONY Custom Estate Master Subaccounts for the period ended December 31, 2001
aggregated $116,337.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.35% of the average daily net assets of
each of the MONY Custom Estate Master Subaccounts. As MONY Life Insurance
Company of America, a wholly-owned subsidiary of MONY, acts as investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the period ended
December 31, 2001, MONY received $371 in aggregate from certain Funds in
connection with MONY Custom Estate Master subaccounts.
F-173
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investment Transactions:
Cost of shares acquired and the proceeds from redemption of shares by each
subaccount during the period ended December 31, 2001 were as follows:
Cost of Shares
Acquired Proceeds from
(Excludes Shares
MONY Custom Estate Master Subaccounts Reinvestments) Redeemed
- ------------------------------------- -------------- -------------
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio.............. $ 1,044 $ 85
Long Term Bond Portfolio...................... 2,514 640
Government Securities Portfolio............... 5,006 595
Money Market Portfolio........................ 356,503 68,408
Enterprise Accumulation Trust
Equity Portfolio.............................. 58,316 8,405
Small Company Value Portfolio................. 33,678 6,231
Managed Portfolio............................. 17,727 5,124
International Growth Portfolio................ 17,939 1,693
High Yield Bond Portfolio..................... 1,540 555
Growth Portfolio.............................. 48,473 14,999
Growth and Income Portfolio................... 26,778 4,675
Small Company Growth Portfolio................ 19,324 2,497
Equity Income Portfolio....................... 8,126 9,222
Capital Appreciation Portfolio................ 22,021 3,175
Multi-Cap Growth Portfolio.................... 45,755 7,043
Balanced Portfolio............................ 434 62
Mid-Cap Growth Portfolio...................... 36 22
Dreyfus
Dreyfus Stock Index Fund...................... 70,836 8,377
Dreyfus Socially Responsible Growth Fund, Inc. 13,794 3,250
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 79,466 10,144
VIP II Contrafund Portfolio................... 34,319 3,609
VIP III Growth Opportunities Portfolio........ 17,538 2,580
Janus Aspen Series
Aggressive Growth Portfolio................... 43,057 7,973
Balanced Portfolio............................ 34,771 4,969
Capital Appreciation Portfolio................ 46,357 6,523
Worldwide Growth Portfolio.................... 65,154 10,742
F-174
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights:
For a unit outstanding throughout the period ended December 31, 2001:
At December 31, 2001 For the period ended December 31, 2001
-------------------------- ----------------------------------
Investment
Net Assets Income Expense Total
MONY Custom Estate Master Subaccounts Units Unit Values (000s) Ratio* Ratio** Return***
- ------------------------------------- ------ ----------- ---------- ---------- ------- ---------
MONY Series Fund, Inc.
Intermediate Term Bond Subaccount (1)........ 93 $10.52 $ 1 0.00%(/\) 0.35%(/\) 5.20%
Long Term Bond Subaccount.................... 1,011 11.26 11 5.15 0.35 5.93
Government Securities Subaccount (2)......... 434 10.41 5 0.60(/\) 0.35(/\) 4.10
Money Market Subaccount...................... 35,225 10.88 383 3.23 0.35 3.52
Enterprise Accumulation Trust
Equity Subaccount............................ 6,726 8.13 55 0.00 0.35 (19.10)
Small Company Value Subaccount............... 4,236 10.54 45 0.30 0.35 4.88
Managed Subaccount........................... 1,617 8.88 14 2.76 0.35 (11.38)
International Growth Subaccount.............. 4,047 6.06 25 0.71 0.35 (28.11)
High Yield Bond Subaccount................... 1,004 10.12 10 8.79 0.35 5.53
Growth Subaccount............................ 7,125 8.40 60 0.51 0.35 (12.86)
Growth and Income Subaccount................. 3,587 8.69 31 1.09 0.35 (12.13)
Small Company Growth Subaccount.............. 2,949 9.74 29 0.00 0.35 (4.23)
Equity Income Subaccount..................... 1,282 9.71 12 0.81 0.35 (11.08)
Capital Appreciation Subaccount.............. 3,721 7.31 27 0.72 0.35 (19.40)
Multi-Cap Growth Subaccount.................. 9,181 5.77 53 0.00 0.35 (17.34)
Balanced Subaccount (1)...................... 37 10.51 0(/\/\) 2.77(/\) 0.35(/\) 5.10
Mid-Cap Growth Subaccount (3)................ 1 10.58 0(/\/\) 0.00(/\) 0.35(/\) 5.80
Dreyfus
Dreyfus Stock Index Subaccount............... 10,189 8.20 84 0.49 0.35 (12.49)
Dreyfus Socially Responsible Growth
Subaccount................................. 2,190 6.72 15 0.10 0.35 (22.94)
Fidelity Variable Insurance Products Funds
VIP Growth Subaccount........................ 9,189 7.60 70 0.00 0.35 (18.02)
VIP II Contrafund Subaccount................. 5,132 8.19 42 0.56 0.35 (12.69)
VIP III Growth Opportunities Subaccount...... 2,459 7.38 18 0.17 0.35 (14.78)
Janus Aspen Series
Aggressive Growth Subaccount................. 9,449 3.68 35 0.00 0.35 (39.67)
Balanced Subaccount.......................... 3,671 9.57 35 3.12 0.35 (4.97)
Capital Appreciation Subaccount.............. 7,623 5.78 44 1.57 0.35 (22.00)
Worldwide Growth Subaccount.................. 10,066 6.69 67 0.64 0.35 (22.75)
- ----------
* This ratio represents the amount of dividend income, excluding distributions
from net realized gains, received by the subaccount from the underlying
fund, net of investment advisory fees assessed by the underlying fund's
investment adviser and other expenses of the underlying fund, divided by the
average net assets of the subaccount. These ratios exclude those expenses,
such as mortality and expense charges, that result in direct reductions in
the net asset value per Unit. The
F-175
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights: (continued)
recognition of dividend income by the subaccount is affected by the timing
of the declaration of dividends by the underlying fund in which the
subaccounts invest.
** This ratio represents the annual contract expenses of the separate account,
consisting primarily of mortality and expense charges, for each period
indicated. The ratio includes only those expenses that result in a direct
reduction to net asset value per Unit. Charges made directly to
contractholder accounts by redemption of Units and expenses of the
respective underlying fund are excluded from this ratio.
***Represents the total return for the period indicated, including changes in
the value of the underlying fund, and reflect deductions for all items
included in the Expense Ratio. The Total Return does not include any
expenses assessed through the redemption of Units; the Total Return would
have been lower had such expenses been included in the calculation. Total
returns for periods less than one year are not annualized.
(/\) Annualized
(/\/\)Amounts round to less than one thousand dollars
(1) For the period April 2, 2001 (commencement of operations) through December
31, 2001.
(2) For the period March 14, 2001 (commencement of operations) through December
31, 2001.
(3) For the period November 21, 2001 (commencement of operations) through
December 31, 2001.
F-176
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account L -- Strategist and MONYEquity Master
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of the Strategist's and MONYEquity Master's Subaccounts of MONY Variable
Account L at December 31, 2001, and the results of each of their operations,
the changes in each of their net assets and the financial highlights for the
periods presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of MONY Life Insurance Company's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, 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, which included confirmation
of investments at December 31, 2001 by correspondence with the underlying
funds' transfer agents, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
April 12, 2002
F-177
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-178
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2001
Strategist
-----------------------------------------------------------------------------
MONY Series Fund, Inc.
--------------------------------------------------------------------
Equity Equity Intermediate Long Term Money
Growth Income Term Bond Bond Diversified Market
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
---------- ---------- ------------ ---------- ----------- ---------- --------
ASSETS
Shares held in respective
Funds....................... 3,558 2,503 688 1,138 7,918 46,063
======== ======= ======= ======== ======== =======
Investments at cost........... $ 79,424 $49,531 $ 7,307 $ 13,604 $125,411 $46,063 $321,340
======== ======= ======= ======== ======== ======= ========
Investments in respective
Funds, at net asset value... $ 57,278 $40,954 $ 7,758 $ 15,231 $ 87,805 $46,063 $255,089
Amount due from MONY.......... 7 7 0 7 0 2 23
Amount due from respective
Funds....................... 123 8 0 8 1,722 3 1,864
-------- ------- ------- -------- -------- ------- --------
Total assets........... 57,408 40,969 7,758 15,246 89,527 46,068 256,976
-------- ------- ------- -------- -------- ------- --------
LIABILITIES
Amount due to MONY............ 140 20 2 13 1,748 17 1,940
Amount due to respective Funds 7 7 0 7 0 2 23
-------- ------- ------- -------- -------- ------- --------
Total liabilities...... 147 27 2 20 1,748 19 1,963
-------- ------- ------- -------- -------- ------- --------
Net assets.................... $ 57,261 $40,942 $ 7,756 $ 15,226 $ 87,779 $46,049 $255,013
======== ======= ======= ======== ======== ======= ========
Net assets consist of:
Contractholders' net
payments................... $(27,307) $ 5,221 $(4,445) $(21,865) $ 16,742 $16,111 $(15,543)
Undistributed net
investment income.......... 99,666 40,497 10,528 29,824 98,544 29,938 308,997
Accumulated net realized
gain on investments........ 7,048 3,801 1,222 5,640 10,099 0 27,810
Net unrealized appreciation
(depreciation) of
investments................ (22,146) (8,577) 451 1,627 (37,606) 0 (66,251)
-------- ------- ------- -------- -------- ------- --------
Net assets.................... $ 57,261 $40,942 $ 7,756 $ 15,226 $ 87,779 $46,049 $255,013
======== ======= ======= ======== ======== ======= ========
Number of units outstanding*.. 1,054 815 295 478 2,071 2,246
======== ======= ======= ======== ======== =======
Net asset value per unit
outstanding*................ $ 54.34 $ 50.21 $ 26.31 $ 31.82 $ 42.39 $ 20.50
======== ======= ======= ======== ======== =======
- ----------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-179
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
December 31, 2001
MONYEquity Master
--------------------------------------------------------------------------
MONY Series Fund, Inc. Enterprise Accumulation Trust
--------------------------------------------- ----------------------------
Government Intermediate Long Term Money Small Company
Securities Term Bond Bond Market Equity Value
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ------------ ---------- ---------- ----------- -------------
ASSETS
Shares held in respective
Funds....................... 19,036 10,606 21,831 503,416 367,499 221,561
======== ======== ======== ======== =========== ===========
Investments at cost........... $208,728 $114,219 $274,319 $503,416 $10,147,830 $ 5,471,084
======== ======== ======== ======== =========== ===========
Investments in respective
Funds, at net asset value... $218,149 $119,526 $292,092 $503,416 $ 6,372,434 $ 4,340,372
Amount due from MONY.......... 0 0 101 1,281 6,877 5,011
Amount due from respective
Funds....................... 35 15 68 135 3,239 2,333
-------- -------- -------- -------- ----------- -----------
Total assets........... 218,184 119,541 292,261 504,832 6,382,550 4,347,716
-------- -------- -------- -------- ----------- -----------
LIABILITIES
Amount due to MONY............ 115 59 175 321 5,623 3,907
Amount due to respective Funds 0 0 101 1,281 6,877 5,011
-------- -------- -------- -------- ----------- -----------
Total liabilities...... 115 59 276 1,602 12,500 8,918
-------- -------- -------- -------- ----------- -----------
Net assets.................... $218,069 $119,482 $291,985 $503,230 $ 6,370,050 $ 4,338,798
======== ======== ======== ======== =========== ===========
Net assets consist of:
Contractholders' net
payments................... $192,755 $105,937 $252,610 $440,544 $ 7,357,060 $ 3,643,616
Undistributed net
investment income (loss)... 16,076 8,828 32,704 62,686 3,575,509 1,919,772
Accumulated net realized
gain (loss) on investments. (183) (590) (11,102) 0 (787,123) (93,878)
Net unrealized appreciation
(depreciation) of
investments................ 9,421 5,307 17,773 0 (3,775,396) (1,130,712)
-------- -------- -------- -------- ----------- -----------
Net assets.................... $218,069 $119,482 $291,985 $503,230 $ 6,370,050 $ 4,338,798
======== ======== ======== ======== =========== ===========
Number of units outstanding*.. 16,863 9,128 21,528 40,522 532,023 204,616
======== ======== ======== ======== =========== ===========
Net asset value per unit
outstanding*................ $ 12.93 $ 13.09 $ 13.56 $ 12.42 $ 11.97 $ 21.20
======== ======== ======== ======== =========== ===========
- ----------
* Units outstanding have been rounded for presentation purposes.
** Amounts round to less than one.
See notes to financial statements.
F-180
MONYEquity Master
- ------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ------------------------------------------------------------------------------------------------
International High Yield Growth and Capital
Managed Growth Bond Growth Income Appreciation Balanced Equity Income
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ----------- ------------- ---------- ---------- ---------- ------------ ---------- -------------
436,998 270,358 137,761 46,563 103,772 15,628 0** 430
=========== ========== ======== ======== ======== ======== ===== ======
$11,529,170 $1,797,787 $655,293 $269,304 $641,764 $105,746 $ 1 $2,060
=========== ========== ======== ======== ======== ======== ===== ======
$ 8,565,159 $1,170,648 $597,883 $242,595 $561,409 $ 88,924 $ 1 $2,160
8,316 60 28 0 0 0 0 0
4,342 736 319 0 0 0 0 0
- ----------- ---------- -------- -------- -------- -------- ----- ------
8,577,817 1,171,444 598,230 242,595 561,409 88,924 1 2,160
- ----------- ---------- -------- -------- -------- -------- ----- ------
7,487 1,160 539 89 205 32 0 1
8,316 60 28 0 0 0 0 0
- ----------- ---------- -------- -------- -------- -------- ----- ------
15,803 1,220 567 89 205 32 0 1
- ----------- ---------- -------- -------- -------- -------- ----- ------
$ 8,562,014 $1,170,224 $597,663 $242,506 $561,204 $ 88,892 $ 1 $2,159
=========== ========== ======== ======== ======== ======== ===== ======
$ 8,645,920 $1,490,276 $566,796 $313,781 $652,742 $112,086 $ 208 $2,303
5,095,137 298,152 140,418 3,993 (328) 3,235 32 17
(2,215,032) 8,935 (52,141) (48,559) (10,855) (9,607) (239) (261)
(2,964,011) (627,139) (57,410) (26,709) (80,355) (16,822) 0 100
- ----------- ---------- -------- -------- -------- -------- ----- ------
$ 8,562,014 $1,170,224 $597,663 $242,506 $561,204 $ 88,892 $ 1 $2,159
=========== ========== ======== ======== ======== ======== ===== ======
631,443 117,820 48,673 28,653 65,041 11,976 0** 231
=========== ========== ======== ======== ======== ======== ===== ======
$ 13.56 $ 9.93 $ 12.28 $ 8.46 $ 8.63 $ 7.42 $9.18 $ 9.35
=========== ========== ======== ======== ======== ======== ===== ======
F-181
MONY
Variable Account L
STATEMENT OF ASSETS AND LIABILITIES (continued)
December 31, 2001
MONYEquity Master
-----------------------------------------
Enterprise
Accumulation Trust
-----------------------------------------
Small
Multi-Cap Company Mid-Cap Worldwide
Growth Growth Growth Growth
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ----------
ASSETS
Shares held in respective
Funds....................... 595 636 469 0**
====== ====== ====== ======
Investments at cost........... $5,147 $4,898 $3,728 $ 1
====== ====== ====== ======
Investments in respective
Funds, at net asset value... $5,013 $5,006 $3,598 $ 1
Amount due from MONY.......... 0 0 0 0
Amount due from respective
Funds....................... 0 0 0 0
------ ------ ------ ------
Total assets........... 5,013 5,006 3,598 1
------ ------ ------ ------
LIABILITIES
Amount due to MONY............ 2 1 1 1
Amount due to respective Funds 0 0 0 0
------ ------ ------ ------
Total liabilities...... 2 1 1 1
------ ------ ------ ------
Net assets.................... $5,011 $5,005 $3,597 $ 0**
====== ====== ====== ======
Net assets consist of:
Contractholders' net
payments................... $5,199 $4,815 $3,752 $ 1
Undistributed net
investment income (loss)... (13) 100 (7) (1)
Accumulated net realized
loss on investments........ (41) (18) (18) 0
Net unrealized appreciation
(depreciation) of
investments................ (134) 108 (130) 0
------ ------ ------ ------
Net assets.................... $5,011 $5,005 $3,597 $ 0**
====== ====== ====== ======
Number of units outstanding*.. 572 476 379 0**
====== ====== ====== ======
Net asset value per unit
outstanding*................ $ 8.76 $10.51 $ 9.49 $10.01
====== ====== ====== ======
- ----------
* Units outstanding have been rounded for presentation purposes.
** Amounts round to less than one.
See notes to financial statements.
F-182
MONYEquity Master
- --------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance
Products Funds Janus Aspen Series
---------------------------------- --------------------------------------------
Dreyfus
Dreyfus Socially VIP III
Stock Responsible VIP VIP II Growth Aggressive Capital Worldwide
Index Growth Growth Contrafund Opportunities Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Total
- ---------- ----------- ---------- ---------- ------------- ---------- ---------- ------------ ---------- -----------
5,350 14 5,988 5,675 122 151 623 12,458 8,359
======== ===== ======== ======== ====== ====== ======= ======== ========
$174,790 $ 383 $244,103 $124,687 $1,984 $3,642 $14,614 $335,016 $290,112 $32,923,826
======== ===== ======== ======== ====== ====== ======= ======== ======== ===========
$157,076 $ 375 $200,481 $113,830 $1,844 $3,325 $14,053 $258,122 $238,564 $24,076,056
0 0 0 0 0 0 0 0 0 21,674
0 0 0 0 0 0 0 0 0 11,222
-------- ----- -------- -------- ------ ------ ------- -------- -------- -----------
157,076 375 200,481 113,830 1,844 3,325 14,053 258,122 238,564 24,108,952
-------- ----- -------- -------- ------ ------ ------- -------- -------- -----------
56 1 73 41 1 1 5 93 85 20,074
0 0 0 0 0 0 0 0 0 21,674
-------- ----- -------- -------- ------ ------ ------- -------- -------- -----------
56 1 73 41 1 1 5 93 85 41,748
-------- ----- -------- -------- ------ ------ ------- -------- -------- -----------
$157,020 $ 374 $200,408 $113,789 $1,843 $3,324 $14,048 $258,029 $238,479 $24,067,204
======== ===== ======== ======== ====== ====== ======= ======== ======== ===========
$181,900 $ 392 $262,207 $129,243 $2,000 $3,693 $14,356 $356,047 $330,667 $25,070,906
3,083 (1) 10,325 1,768 (7) (9) 312 2,938 7,718 11,182,437
(10,249) (9) (28,502) (6,365) (10) (43) (59) (24,062) (48,358) (3,338,369)
(17,714) (8) (43,622) (10,857) (140) (317) (561) (76,894) (51,548) (8,847,770)
-------- ----- -------- -------- ------ ------ ------- -------- -------- -----------
$157,020 $ 374 $200,408 $113,789 $1,843 $3,324 $14,048 $258,029 $238,479 $24,067,204
======== ===== ======== ======== ====== ====== ======= ======== ======== ===========
19,709 44 26,701 13,866 199 413 1,435 39,919 38,546
======== ===== ======== ======== ====== ====== ======= ======== ========
$ 7.96 $8.57 $ 7.51 $ 8.21 $ 9.27 $ 8.04 $ 9.79 $ 6.46 $ 6.19
======== ===== ======== ======== ====== ====== ======= ======== ========
F-183
MONY
Variable Account L
STATEMENT OF OPERATIONS
For the year ended December 31, 2001
Strategist
--------------------------------------------
MONY Series Fund, Inc.
--------------------------------------------
Equity Equity Intermediate Long Term
Growth Income Term Bond Bond
Subaccount Subaccount Subaccount Subaccount
---------- ---------- ------------ ----------
Dividend income............... $ 0 $ 745 $404 $800
Distribution from net
realized gains.............. 39,765 4,339 0 0
Mortality and expense risk
charges..................... (428) (261) (46) (93)
-------- -------- ---- ----
Net investment income......... 39,337 4,823 358 707
-------- -------- ---- ----
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ (42,503) (5,128) 27 140
Net change in unrealized
appreciation
(depreciation) of
investments................ (14,629) (5,340) 194 0
-------- -------- ---- ----
Net realized and unrealized
gain (loss) on investments.. (57,132) (10,468) 221 140
-------- -------- ---- ----
Net increase (decrease) in
net assets resulting from
operations.................. $(17,795) $ (5,645) $579 $847
======== ======== ==== ====
See notes to financial statements.
F-184
Strategist MONYEquity Master
- -------------------------------- --------------------------------------------------------------------------
MONY Series Fund, Inc. MONY Series Fund, Inc. Enterprise Accumulation Trust
- --------------------- -------------------------------------------- ----------------------------
Money Government Intermediate Long Term Money Small Company
Diversified Market Securities Term Bond Bond Market Equity Value
Subaccount Subaccount Total Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ----------- ---------- --------- ---------- ------------ ---------- ---------- ----------- -------------
$ 1,084 $1,371 $ 4,404 $ 8,580 $4,906 $13,289 $15,293 $ 0 $ 10,504
25,206 0 69,310 0 0 0 0 1,112,840 1,063,087
(576) (239) (1,643) (1,479) (760) (2,024) (3,192) (47,028) (30,559)
-------- ------ --------- ------- ------ ------- ------- ----------- ----------
25,714 1,132 72,071 7,101 4,146 11,265 12,101 1,065,812 1,043,032
-------- ------ --------- ------- ------ ------- ------- ----------- ----------
(771) 0 (48,235) 1,848 373 3,331 0 (863,163) (200,237)
(42,095) 0 (61,870) 1,700 2,572 (686) 0 (1,586,564) (673,717)
-------- ------ --------- ------- ------ ------- ------- ----------- ----------
(42,866) 0 (110,105) 3,548 2,945 2,645 0 (2,449,727) (873,954)
-------- ------ --------- ------- ------ ------- ------- ----------- ----------
$(17,152) $1,132 $ (38,034) $10,649 $7,091 $13,910 $12,101 $(1,383,915) $ 169,078
======== ====== ========= ======= ====== ======= ======= =========== ==========
F-185
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
MONYEquity Master
---------------------------------------------------
Enterprise Accumulation Trust
---------------------------------------------------
International High Yield
Managed Growth Bond Growth
Subaccount Subaccount Subaccount Subaccount
------------ ------------- ------------ ------------
For the year For the year For the year For the year
ended ended ended ended
December 31, December 31, December 31, December 31,
2001 2001 2001 2001
------------ ------------- ------------ ------------
Dividend income............... $ 186,893 $ 8,316 $ 50,265 $ 1,010
Distribution from net
realized gains.............. 447,182 128,816 0 0
Mortality and expense risk
charges..................... (64,039) (9,119) (4,258) (1,585)
----------- --------- -------- --------
Net investment income (loss).. 570,036 128,013 46,007 (575)
----------- --------- -------- --------
Realized and unrealized gain
(loss) on investments:
Net realized loss on
investments................ (1,347,132) (98,675) (18,199) (4,515)
Net change in unrealized
appreciation
(depreciation) of
investments................ (296,366) (445,255) (1,547) (22,821)
----------- --------- -------- --------
Net realized and unrealized
gain (loss) on investments.. (1,643,498) (543,930) (19,746) (27,336)
----------- --------- -------- --------
Net increase (decrease) in
net assets resulting from
operations.................. $(1,073,462) $(415,917) $ 26,261 $(27,911)
=========== ========= ======== ========
- ----------
** Commencement of operations.
See notes to financial statements.
F-186
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
MONYEquity Master
- ------------------------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ------------------------------------------------------------------------------------------------------------------------
Small
Growth and Capital Equity Multi-Cap Company Mid-Cap Worldwide
Income Appreciation Balanced Income Growth Growth Growth Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
- ------------ ------------ -------------- --------------- -------------- ---------------- ---------------- ---------------
For the period For the period For the period For the period For the period For the period
For the year For the year May 4, 2001** June 19, 2001** May 18, 2001** August 8, 2001** August 8, 2001** June 13, 2001**
ended ended through through through through through through
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2001 2001 2001 2001 2001 2001 2001
- ------------ ------------ -------------- --------------- -------------- ---------------- ---------------- ---------------
$ 4,977 $ 588 $ 39 $ 31 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0 108 0 0
(4,208) (634) (7) (14) (13) (8) (7) (1)
-------- -------- ----- ----- ----- ---- ----- ---
769 (46) 32 17 (13) 100 (7) (1)
-------- -------- ----- ----- ----- ---- ----- ---
(10,658) (9,362) (239) (261) (41) (18) (18) 0
(65,635) (9,232) 0 100 (134) 108 (130) 0
-------- -------- ----- ----- ----- ---- ----- ---
(76,293) (18,594) (239) (161) (175) 90 (148) 0
-------- -------- ----- ----- ----- ---- ----- ---
$(75,524) $(18,640) $(207) $(144) $(188) $190 $(155) $(1)
======== ======== ===== ===== ===== ==== ===== ===
F-187
MONY
Variable Account L
STATEMENT OF OPERATIONS (continued)
MONYEquity Master
-----------------------------------------------------------------------
Fidelity Variable Insurance
Products Funds
---------------------------------------
Dreyfus Dreyfus VIP III
Stock Socially VIP VIP II Growth
Index Responsible Growth Growth Contrafund Opportunities
Subaccount Subaccount Subaccount Subaccount Subaccount
------------ ------------------ ------------ ------------ --------------
For the period For the period
For the year May 15, 2001** For the year For the year May 15, 2001**
ended through ended ended through
December 31, December 31, December 31, December 31, December 31,
2001 2001 2001 2001 2001
------------ ------------------ ------------ ------------ --------------
Dividend income................ $ 650 $ 0 $ 0 $ 543 $ 0
Distribution from net
realized gains............... 1,684 0 12,260 2,172 0
Mortality and expense risk
charges...................... (958) (1) (1,393) (692) (7)
-------- ---- -------- -------- -----
Net investment income (loss)... 1,376 (1) 10,867 2,023 (7)
-------- ---- -------- -------- -----
Realized and unrealized loss
on investments:
Net realized loss on
investments................. (9,710) (9) (28,799) (6,246) (10)
Net change in unrealized
depreciation of investments. (8,258) (8) (18,560) (7,106) (140)
-------- ---- -------- -------- -----
Net realized and unrealized
loss on investments.......... (17,968) (17) (47,359) (13,352) (150)
-------- ---- -------- -------- -----
Net decrease in net assets
resulting from operations.... $(16,592) $(18) $(36,492) $(11,329) $(157)
======== ==== ======== ======== =====
- ----------
** Commencement of operations.
See notes to financial statements.
F-188
MONYEquity Master
--------------------------------------------------------------------
Janus Aspen Series
-------------------------------------------------------
Aggressive Capital Worldwide
Growth Balanced Appreciation Growth
Subaccount Subaccount Subaccount Subaccount Total
-------------- --------------- ------------ ------------ ------------
For the period For the period
May 15, 2001** June 13, 2001** For the year For the year For the year
through through ended ended ended
December 31, December 31, December 31, December 31, December 31,
2001 2001 2001 2001 2001
-------------- --------------- ------------ ------------ ------------
$ 0 $ 368 $ 3,159 $ 1,160 $ 310,571
0 0 0 0 2,768,149
(9) (56) (1,773) (1,629) (175,453)
----- ----- -------- -------- -----------
(9) 312 1,386 (469) 2,903,267
----- ----- -------- -------- -----------
(43) (59) (23,108) (45,597) (2,660,547)
(317) (561) (36,977) (9,729) (3,179,263)
----- ----- -------- -------- -----------
(360) (620) (60,085) (55,326) (5,839,810)
----- ----- -------- -------- -----------
$(369) $(308) $(58,699) $(55,795) $(2,936,543)
===== ===== ======== ======== ===========
F-189
[THIS PAGE INTENTIONALLY LEFT BLANK]
F-190
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31,
Strategist
-------------------------------------------------------
MONY Series Fund, Inc.
-------------------------------------------------------
Intermediate
Equity Growth Equity Income Term Bond
Subaccount Subaccount Subaccount
------------------ ----------------- ----------------
2001 2000 2001 2000 2001 2000
-------- -------- ------- -------- ------- -------
From operations:
Net investment income............................ $ 39,337 $ 25,674 $ 4,823 $ 7,622 $ 358 $ 392
Net realized gain (loss) on investments.......... (42,503) 7,207 (5,128) (4,520) 27 12
Net change in unrealized appreciation
(depreciation) of investments.................. (14,629) (42,699) (5,340) (787) 194 108
-------- -------- ------- -------- ------- -------
Net increase (decrease) in net assets resulting
from operations.................................. (17,795) (9,818) (5,645) 2,315 579 512
-------- -------- ------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.......... 10,837 9,102 9,400 8,068 407 407
Net asset value of units redeemed or used to
meet contract obligations...................... (37,289) (19,117) (9,050) (13,604) (684) (655)
-------- -------- ------- -------- ------- -------
Net increase (decrease) from unit transactions.... (26,452) (10,015) 350 (5,536) (277) (248)
-------- -------- ------- -------- ------- -------
Net increase (decrease) in net assets............. (44,247) (19,833) (5,295) (3,221) 302 264
Net assets beginning of year...................... 101,508 121,341 46,237 49,458 7,454 7,190
-------- -------- ------- -------- ------- -------
Net assets end of year*........................... $ 57,261 $101,508 $40,942 $ 46,237 $ 7,756 $ 7,454
======== ======== ======= ======== ======= =======
Unit transactions:
Units outstanding beginning of year............... 1,498 1,629 815 919 306 316
Units issued during the year...................... 189 126 185 157 16 18
Units redeemed during the year.................... (633) (257) (185) (261) (27) (28)
-------- -------- ------- -------- ------- -------
Units outstanding end of year..................... 1,054 1,498 815 815 295 306
======== ======== ======= ======== ======= =======
- ----------
* Includes undistributed net investment income
of: $ 99,666 $ 60,329 $40,497 $ 35,674 $10,528 $10,170
======== ======== ======= ======== ======= =======
See notes to financial statements.
F-191
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
For the years ended December 31,
Strategist
--------------------------------------------------------------------------
MONY Series Fund, Inc.
------------------------------------------------------
Long Term Bond Diversified Money Market
Subaccount Subaccount Subaccount Total
---------------- ------------------ ---------------- ------------------
2001 2000 2001 2000 2001 2000 2001 2000
------- ------- -------- -------- ------- ------- -------- --------
From operations:
Net investment income........ $ 707 $ 892 $ 25,714 $ 18,903 $ 1,132 $ 1,204 $ 72,071 $ 54,687
Net realized gain (loss) on
investments................ 140 42 (771) 1,306 0 0 (48,235) 4,047
Net change in unrealized
appreciation
(depreciation) of
investments................ 0 1,085 (42,095) (28,524) 0 0 (61,870) (70,817)
------- ------- -------- -------- ------- ------- -------- --------
Net increase (decrease) in
net assets resulting from
operations................... 847 2,019 (17,152) (8,315) 1,132 1,204 (38,034) (12,083)
------- ------- -------- -------- ------- ------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 695 662 1,816 1,816 26,387 225 49,542 20,280
Net asset value of units
redeemed or used to meet
contract obligations....... (1,469) (1,395) (4,976) (3,147) (3,158) (3,045) (56,626) (40,963)
------- ------- -------- -------- ------- ------- -------- --------
Net increase (decrease) from
unit transactions............ (774) (733) (3,160) (1,331) 23,229 (2,820) (7,084) (20,683)
------- ------- -------- -------- ------- ------- -------- --------
Net increase (decrease) in
net assets................... 73 1,286 (20,312) (9,646) 24,361 (1,616) (45,118) (32,766)
Net assets beginning of year.. 15,153 13,867 108,091 117,737 21,688 23,304 300,131 332,897
------- ------- -------- -------- ------- ------- -------- --------
Net assets end of year*....... $15,226 $15,153 $ 87,779 $108,091 $46,049 $21,688 $255,013 $300,131
======= ======= ======== ======== ======= ======= ======== ========
Unit transactions:
Units outstanding beginning
of year...................... 503 529 2,144 2,169 1,091 1,237
Units issued during the year.. 22 24 41 34 1,312 12
Units redeemed during the year (47) (50) (114) (59) (157) (158)
------- ------- -------- -------- ------- -------
Units outstanding end of year. 478 503 2,071 2,144 2,246 1,091
======= ======= ======== ======== ======= =======
- ----------
* Includes undistributed net
investment income of: $29,824 $29,117 $ 98,544 $ 72,830 $29,938 $28,806 $308,997 $236,926
======= ======= ======== ======== ======= ======= ======== ========
See notes to financial statements.
F-192
MONYEquity Master
- -------------------------------------------------------------------------------------
MONY Series Fund, Inc.
- -------------------------------------------------------------------------------------
Government Securities Intermediate Term Bond Long Term Bond Money Market
Subaccount Subaccount Subaccount Subaccount
- -------------------- --------------------- ------------------ --------------------
2001 2000 2001 2000 2001 2000 2001 2000
- -------- -------- -------- -------- -------- -------- --------- ---------
$ 7,101 $ 6,723 $ 4,146 $ 3,492 $ 11,265 $ 11,033 $ 12,101 $ 18,236
1,848 (2,432) 373 (1,282) 3,331 (13,149) 0 0
1,700 8,747 2,572 3,205 (686) 30,688 0 0
- -------- -------- -------- -------- -------- -------- --------- ---------
10,649 13,038 7,091 5,415 13,910 28,572 12,101 18,236
- -------- -------- -------- -------- -------- -------- --------- ---------
80,538 95,228 41,738 58,601 86,596 90,649 227,921 813,712
(43,706) (62,590) (15,441) (18,396) (52,289) (40,413) (110,374) (958,404)
- -------- -------- -------- -------- -------- -------- --------- ---------
36,832 32,638 26,297 40,205 34,307 50,236 117,547 (144,692)
- -------- -------- -------- -------- -------- -------- --------- ---------
47,481 45,676 33,388 45,620 48,217 78,808 129,648 (126,456)
170,588 124,912 86,094 40,474 243,768 164,960 373,582 500,038
- -------- -------- -------- -------- -------- -------- --------- ---------
$218,069 $170,588 $119,482 $ 86,094 $291,985 $243,768 $ 503,230 $ 373,582
======== ======== ======== ======== ======== ======== ========= =========
13,956 11,129 7,085 3,569 18,963 14,728 30,993 43,698
6,354 8,301 3,258 5,116 6,605 7,682 18,556 69,880
(3,447) (5,474) (1,215) (1,600) (4,040) (3,447) (9,027) (82,585)
- -------- -------- -------- -------- -------- -------- --------- ---------
16,863 13,956 9,128 7,085 21,528 18,963 40,522 30,993
======== ======== ======== ======== ======== ======== ========= =========
$ 16,076 $ 8,975 $ 8,828 $ 4,682 $ 32,704 $ 21,439 $ 62,686 $ 50,585
======== ======== ======== ======== ======== ======== ========= =========
F-193
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
----------------------------------------------------------------------------
Enterprise Accumulation Trust
----------------------------------------------------------------------------
Small Company Value
Equity Subaccount Subaccount Managed Subaccount
------------------------ ------------------------ ------------------------
For the year For the year For the year For the year For the year For the year
ended ended ended ended ended ended
December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2000
------------ ------------ ------------ ------------ ------------ ------------
From operations:
Net investment
income (loss).... $ 1,065,812 $ 1,968,620 $1,043,032 $ 652,884 $ 570,036 $ 2,809,371
Net realized gain
(loss) on
investments...... (863,163) 35,077 (200,237) 89,030 (1,347,132) (852,352)
Net change in
unrealized
depreciation of
investments...... (1,586,564) (2,557,368) (673,717) (677,429) (296,366) (1,901,207)
----------- ----------- ---------- ---------- ----------- -----------
Net increase
(decrease) in net
assets resulting
from operations.... (1,383,915) (553,671) 169,078 64,485 (1,073,462) 55,812
----------- ----------- ---------- ---------- ----------- -----------
From unit
transactions:
Net proceeds from
the issuance of
units............ 1,703,994 2,597,938 1,037,221 1,558,529 2,046,956 2,866,619
Net asset value of
units redeemed
or used to meet
contract
obligations...... (969,103) (1,243,143) (572,189) (710,983) (1,270,158) (2,636,000)
----------- ----------- ---------- ---------- ----------- -----------
Net increase from
unit transactions.. 734,891 1,354,795 465,032 847,546 776,798 230,619
----------- ----------- ---------- ---------- ----------- -----------
Net increase
(decrease) in net
assets............. (649,024) 801,124 634,110 912,031 (296,664) 286,431
Net assets
beginning of period 7,019,074 6,217,950 3,704,688 2,792,657 8,858,678 8,572,247
----------- ----------- ---------- ---------- ----------- -----------
Net assets end of
period*............ $ 6,370,050 $ 7,019,074 $4,338,798 $3,704,688 $ 8,562,014 $ 8,858,678
=========== =========== ========== ========== =========== ===========
Unit transactions:
Units outstanding
beginning of period 472,274 393,602 182,442 139,911 575,976 561,265
Units issued during
the period......... 139,694 150,855 50,013 78,023 146,154 191,987
Units redeemed
during the period.. (79,945) (72,183) (27,839) (35,492) (90,687) (177,276)
----------- ----------- ---------- ---------- ----------- -----------
Units outstanding
end of period...... 532,023 472,274 204,616 182,442 631,443 575,976
=========== =========== ========== ========== =========== ===========
- ----------
* Includes
undistributed
net investment
income (loss) of: $ 3,575,509 $ 2,509,697 $1,919,772 $ 876,740 $ 5,095,137 $ 4,525,101
=========== =========== ========== ========== =========== ===========
** Commencement of operations
See notes to financial statements.
F-194
MONYEquity Master
- ----------------------------------------------------------------------------------------------------------
Enterprise Accumulation Trust
- ----------------------------------------------------------------------------------------------------------
International Growth High Yield Bond Growth Growth and Income
Subaccount Subaccount Subaccount Subaccount
- ------------------------ ------------------------ -------------------------- --------------------------
For the period For the period
For the year For the year For the year For the year For the year May 2, 2000** For the year May 2, 2000**
ended ended ended ended ended through ended through
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2000 2001 2000 2001 2000
- ------------ ------------ ------------ ------------ ------------ -------------- ------------ --------------
$ 128,013 $ 123,699 $ 46,007 $ 42,778 $ (575) $ 4,568 $ 769 $ (1,097)
(98,675) 44,665 (18,199) (25,732) (4,515) (44,044) (10,658) (197)
(445,255) (436,907) (1,547) (33,467) (22,821) (3,888) (65,635) (14,720)
---------- ---------- -------- --------- -------- --------- -------- --------
(415,917) (268,543) 26,261 (16,421) (27,911) (43,364) (75,524) (16,014)
---------- ---------- -------- --------- -------- --------- -------- --------
432,230 732,612 145,404 224,131 81,619 791,837 131,912 610,914
(234,412) (337,855) (82,820) (152,327) (19,913) (539,762) (71,399) (18,685)
---------- ---------- -------- --------- -------- --------- -------- --------
197,818 394,757 62,584 71,804 61,706 252,075 60,513 592,229
---------- ---------- -------- --------- -------- --------- -------- --------
(218,099) 126,214 88,845 55,383 33,795 208,711 (15,011) 576,215
1,388,323 1,262,109 508,818 453,435 208,711 0 576,215 0
---------- ---------- -------- --------- -------- --------- -------- --------
$1,170,224 $1,388,323 $597,663 $ 508,818 $242,506 $ 208,711 $561,204 $576,215
========== ========== ======== ========= ======== ========= ======== ========
100,108 74,758 43,551 37,549 21,398 0 58,400 0
39,323 48,113 12,128 18,734 9,662 78,119 14,623 60,269
(21,611) (22,763) (7,006) (12,732) (2,407) (56,721) (7,982) (1,869)
---------- ---------- -------- --------- -------- --------- -------- --------
117,820 100,108 48,673 43,551 28,653 21,398 65,041 58,400
========== ========== ======== ========= ======== ========= ======== ========
$ 298,152 $ 170,139 $140,418 $ 94,411 $ 3,993 $ 4,568 $ (328) $ (1,097)
========== ========== ======== ========= ======== ========= ======== ========
F-195
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
-----------------------------------------------------------------------------------------
Enterprise Accumulation Trust
-----------------------------------------------------------------------------------------
Capital Equity Multi-Cap Small Company
Appreciation Balanced Income Growth Growth
Subaccount Subaccount Subaccount Subaccount Subaccount
-------------------------- -------------- --------------- -------------- ----------------
For the period For the period For the period For the period For the period
For the year May 2, 2000** May 4, 2001** June 19, 2001** May 18, 2001** August 8, 2001**
ended through through through through through
December 31, December 31, December 31, December 31, December 31, December 31,
2001 2000 2001 2001 2001 2001
------------ -------------- -------------- --------------- -------------- ----------------
From operations:
Net investment income (loss)...... $ (46) $ 3,281 $ 32 $ 17 $ (13) $ 100
Net realized gain (loss) on
investments..................... (9,362) (245) (239) (261) (41) (18)
Net change in unrealized
appreciation (depreciation) of
investments..................... (9,232) (7,590) 0 100 (134) 108
-------- ------- ------- ------- ------ ------
Net increase (decrease) in net
assets resulting from operations.. (18,640) (4,554) (207) (144) (188) 190
-------- ------- ------- ------- ------ ------
From unit transactions:
Net proceeds from the issuance of
units........................... 49,649 98,634 2,610 5,300 5,378 4,941
Net asset value of units redeemed
or used to meet contract
obligations..................... (27,711) (8,486) (2,402) (2,997) (179) (126)
-------- ------- ------- ------- ------ ------
Net increase from unit transactions 21,938 90,148 208 2,303 5,199 4,815
-------- ------- ------- ------- ------ ------
Net increase in net assets......... 3,298 85,594 1 2,159 5,011 5,005
Net assets beginning of period..... 85,594 0 0 0 0 0
-------- ------- ------- ------- ------ ------
Net assets end of period*.......... $ 88,892 $85,594 $ 1 $ 2,159 $5,011 $5,005
======== ======= ======= ======= ====== ======
Unit transactions:
Units outstanding beginning of
period............................ 9,254 0 0 0 0 0
Units issued during the period..... 6,340 10,125 263 556 594 490
Units redeemed during the period... (3,618) (871) (263) (325) (22) (14)
-------- ------- ------- ------- ------ ------
Units outstanding end of period.... 11,976 9,254 0*** 231 572 476
======== ======= ======= ======= ====== ======
- ----------
* Includes undistributed net
investment income (loss) of: $ 3,235 $ 3,281 $ 32 $ 17 $ (13) $ 100
======== ======= ======= ======= ====== ======
** Commencement of operations
***Amounts round to less than one
See notes to financial statements.
F-196
MONYEquity Master
- ------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance
Enterprise Accumulation Trust Products Funds
- ----------------------------- --------------------------
Mid-Cap Worldwide Dreyfus Dreyfus VIP
Growth Growth Stock Index Socially Responsible Growth
Subaccount Subaccount Subaccount Growth Subaccount Subaccount
- ---------------- --------------- -------------------------- -------------------- --------------------------
For the period For the period For the period For the period For the period
August 8, 2001** June 13, 2001** For the year May 2, 2000** May 15, 2001** For the year May 11, 2000**
through through ended through through ended through
December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2001 2001 2001 2000 2001 2001 2000
- ---------------- --------------- ------------ -------------- -------------------- ------------ --------------
$ (7) $(1) $ 1,376 $ 1,707 $ (1) $ 10,867 $ (542)
(18) 0 (9,710) (539) (9) (28,799) 297
(130) 0 (8,258) (9,456) (8) (18,560) (25,062)
------ --- -------- -------- ---- -------- --------
(155) (1) (16,592) (8,288) (18) (36,492) (25,307)
------ --- -------- -------- ---- -------- --------
3,876 1 103,848 121,260 469 109,238 222,452
(124) 0 (35,305) (7,903) (77) (54,494) (14,989)
------ --- -------- -------- ---- -------- --------
3,752 1 68,543 113,357 392 54,744 207,463
------ --- -------- -------- ---- -------- --------
3,597 0*** 51,951 105,069 374 18,252 182,156
0 0 105,069 0 0 182,156 0
------ --- -------- -------- ---- -------- --------
$3,597 $ 0*** $157,020 $105,069 $374 $200,408 $182,156
====== === ======== ======== ==== ======== ========
0 0 11,492 0 0 19,810 0
393 0*** 12,533 12,300 53 13,854 21,273
(14) 0 (4,316) (808) (9) (6,963) (1,463)
------ --- -------- -------- ---- -------- --------
379 0*** 19,709 11,492 44 26,701 19,810
====== === ======== ======== ==== ======== ========
$ (7) $(1) $ 3,083 $ 1,707 $ (1) $ 10,325 $ (542)
====== === ======== ======== ==== ======== ========
F-197
MONY
Variable Account L
STATEMENT OF CHANGES IN NET ASSETS (continued)
MONYEquity Master
--------------------------------------------------------------------
Janus Aspen
Fidelity Variable Insurance Products Funds Series
-------------------------------------------------- -----------------
VIP II VIP III Aggressive
Contrafund Growth Opportunities Growth
Subaccount Subaccount Subaccount
----------------------------- -------------------- -----------------
For the year For the period For the period For the period
ended May 2, 2000** May 15, 2001** May 15, 2001**
December 31, through through through
2001 December 31, 2000 December 31, 2001 December 31, 2001
------------ ----------------- -------------------- -----------------
From operations:
Net investment income (loss). $ 2,023 $ (255) $ (7) $ (9)
Net realized loss on
investments................ (6,246) (119) (10) (43)
Net change in unrealized
depreciation of investments (7,106) (3,751) (140) (317)
-------- ------- ------ ------
Net decrease in net assets
resulting from operations.... (11,329) (4,125) (157) (369)
-------- ------- ------ ------
From unit transactions:
Net proceeds from the
issuance of units.......... 66,691 92,416 2,088 3,879
Net asset value of units
redeemed or used to
meet contract obligations.. (23,568) (6,296) (88) (186)
-------- ------- ------ ------
Net increase from unit
transactions................. 43,123 86,120 2,000 3,693
-------- ------- ------ ------
Net increase in net assets.... 31,794 81,995 1,843 3,324
Net assets beginning of period 81,995 0 0 0
-------- ------- ------ ------
Net assets end of period*..... $113,789 $81,995 $1,843 $3,324
======== ======= ====== ======
Unit transactions:
Units outstanding beginning
of period.................... 8,689 0 0 0
Units issued during the period 8,027 9,334 208 437
Units redeemed during the
period....................... (2,850) (645) (9) (24)
-------- ------- ------ ------
Units outstanding end of
period....................... 13,866 8,689 199 413
======== ======= ====== ======
- ----------
* Includes undistributed net
investment income (loss)
of: $ 1,768 $ (255) $ (7) $ (9)
======== ======= ====== ======
** Commencement of operations
See notes to financial statements.
F-198
MONYEquity Master
- -------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
- -------------------------------------------------------------------------------
Capital Worldwide
Balanced Appreciation Growth
Subaccount Subaccount Subaccount Total
- ----------------- ----------------------------- ----------------------------- ----------------------------------
For the period For the year For the period For the year For the period
June 13, 2001** ended May 4, 2000** ended May 2, 2000** For the year For the year
through December 31, through December 31, through ended ended
December 31, 2001 2001 December 31, 2000 2001 December 31, 2000 December 31, 2001 December 31, 2000
- ----------------- ------------ ----------------- ------------ ----------------- ----------------- -----------------
$ 312 $ 1,386 $ 1,552 $ (469) $ 8,187 $ 2,903,267 $ 5,654,237
(59) (23,108) (954) (45,597) (2,761) (2,660,547) (774,737)
(561) (36,977) (39,917) (9,729) (41,819) (3,179,263) (5,709,941)
------- -------- -------- -------- -------- ----------- -----------
(308) (58,699) (39,319) (55,795) (36,393) (2,936,543) (830,441)
------- -------- -------- -------- -------- ----------- -----------
14,889 126,828 299,970 150,378 265,449 6,666,192 11,540,951
(533) (50,973) (19,778) (68,469) (16,691) (3,709,036) (6,792,701)
------- -------- -------- -------- -------- ----------- -----------
14,356 75,855 280,192 81,909 248,758 2,957,156 4,748,250
------- -------- -------- -------- -------- ----------- -----------
14,048 17,156 240,873 26,114 212,365 20,613 3,917,809
0 240,873 0 212,365 0 24,046,591 20,128,782
------- -------- -------- -------- -------- ----------- -----------
$14,048 $258,029 $240,873 $238,479 $212,365 $24,067,204 $24,046,591
======= ======== ======== ======== ======== =========== ===========
0 28,955 0 26,409 0
1,491 18,374 31,067 22,493 28,254
(56) (7,410) (2,112) (10,356) (1,845)
------- -------- -------- -------- --------
1,435 39,919 28,955 38,546 26,409
======= ======== ======== ======== ========
$ 312 $ 2,938 $ 1,552 $ 7,718 $ 8,187 $11,182,437 $ 8,279,170
======= ======== ======== ======== ======== =========== ===========
F-199
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Premium Variable Life Insurance policies, which
include Variable Life (Strategist) and Variable Universal Life (MONYEquity
Master, MONY Custom Equity Master and MONY Custom Estate Master). These
policies are issued by MONY. For presentation purposes, the information related
to the Variable Life (Strategist) and Variable Universal Life (MONYEquity
Master) Insurance policies is presented here.
There are currently six Strategist subaccounts and twenty-seven MONYEquity
Master subaccounts within the Variable Account each of which invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund"), the
Enterprise Accumulation Trust ("Enterprise"), Dreyfus Stock Index Fund, Dreyfus
Socially Responsible Growth Fund, Inc., Fidelity Variable Insurance Products
Funds, or Janus Aspen Series (collectively, the "Funds"). The Funds are
registered under the 1940 Act as open-end, diversified, management investment
companies. The Fund and Enterprise are affiliated with MONY.
These financial statements should be read in conjunction with the financial
statements and footnotes of the Funds, which were distributed by MONY to the
policyholders.
2. Significant Accounting Policies:
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of
the Funds. For the Money Market Portfolio, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income and
distributions of net realized gains are recorded on the ex-dividend date.
Investment income includes dividends from net investment income and
distributions of net realized gains received from the respective portfolios of
the Funds. Dividends and distributions received are reinvested in additional
shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for Federal
income tax purposes.
F-200
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
3. Related Party Transactions:
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions
by the Variable Account. The amount deducted for such purposes from all
Strategist and MONYEquity Master subaccounts for the period ended December 31,
2001 aggregated $2,939,342.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60% (for each of the Strategist
Subaccounts) and 0.75% (for each of the MONYEquity Master Subaccounts) of the
average daily net assets of the respective subaccounts. As MONY Life Insurance
Company of America, a wholly-owned subsidiary of MONY, acts as investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to the portfolios of Enterprise, and it receives amounts
paid by Enterprise for those services.
MONY and MONY America receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the year ended
December 31, 2001, MONY received $1,736 in aggregate from certain Funds in
connection with Strategist and MONYEquity Master subaccounts.
F-201
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investment Transactions:
Cost of shares acquired and proceeds from shares redeemed by each subaccount
during the period ended December 31, 2001 were as follows:
Cost of Shares Acquired Proceeds from
Strategist Subaccounts (Excludes Reinvestments) Shares Redeemed
---------------------- ------------------------ ---------------
MONY Series Fund, Inc.
Equity Growth Portfolio....... $ 12,238 $ 39,124
Equity Income Portfolio....... 10,350 10,259
Intermediate Term Bond
Portfolio................... 407 730
Long Term Bond Portfolio...... 708 1,574
Diversified Portfolio......... 1,815 5,550
Money Market Portfolio........ 26,406 3,407
MONYEquity Master
-----------------
MONY Series Fund, Inc.
Government Securities
Portfolio................... 85,513 50,129
Intermediate Term Bond
Portfolio................... 43,741 18,185
Long Term Bond Portfolio...... 91,385 59,065
Money Market Portfolio........ 230,323 115,888
Enterprise Accumulation Trust
Equity Portfolio.............. 1,753,946 1,065,700
Small Company Value Portfolio. 1,073,856 638,842
Managed Portfolio............. 2,118,159 1,404,745
International Growth Portfolio 444,264 255,530
High Yield Bond Portfolio..... 153,164 94,765
Growth Portfolio.............. 82,504 22,352
Growth and Income Portfolio... 132,772 76,425
Capital Appreciation Portfolio 51,811 30,499
Balanced Portfolio............ 2,631 2,430
Equity Income Portfolio....... 5,299 3,009
Multi-Cap Growth Portfolio.... 5,389 201
Small Company Growth Portfolio 4,952 144
Mid-Cap Growth Portfolio...... 3,876 130
Worldwide Growth Portfolio.... 5,936 5,935
Dreyfus
Dreyfus Stock Index Fund...... 105,958 38,346
Dreyfus Socially Responsible
Growth Fund, Inc............ 490 98
F-202
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investment Transactions:
(continued)
Cost of Shares Acquired Proceeds from
MONYEquity Master (Excludes Reinvestments) Shares Redeemed
----------------- ------------------------ ---------------
Fidelity Variable Insurance
Products Funds
VIP Growth Portfolio.......... $115,349 $61,976
VIP II Contrafund Portfolio... 68,918 26,467
VIP III Growth Opportunities
Portfolio................... 2,088 94
Janus Aspen Series
Aggressive Growth Portfolio... 3,898 213
Balanced Portfolio............ 28,855 14,550
Capital Appreciation Portfolio 128,140 54,034
Worldwide Growth Portfolio.... 162,650 82,345
5. Financial Highlights
For a unit outstanding throughout the period ended December 31, 2001:
At December 31, 2001 For the period ended December 31, 2001
----------------------------- ------------------------------------
Investment
Net Assets Income Expense Total
Strategist Subaccounts Units Unit Values (000s) Ratio* Ratio** Return***
- ---------------------- ------ ----------- ---------- ---------- ------- ---------
MONY Series Fund, Inc.
Equity Growth Subaccount...... 1,054 $54.34 $ 57 0.00% 0.60% (19.79)%
Equity Income Subaccount...... 815 50.21 41 1.71 0.60 (11.52)
Intermediate Term Bond
Subaccount.................. 295 26.31 8 5.27 0.60 7.87
Long Term Bond Subaccount..... 478 31.82 15 5.16 0.60 5.68
Diversified Subaccount........ 2,071 42.39 88 1.13 0.60 (15.93)
Money Market Subaccount....... 2,246 20.50 46 3.44 0.60 3.17
MONYEquity Master Subaccounts
- -----------------------------
MONY Series Fund, Inc.
Government Securities
Subaccount.................. 16,863 12.93 218 4.35 0.75 5.81
Intermediate Term Bond
Subaccount.................. 9,128 13.09 119 4.84 0.75 7.74
Long Term Bond Subaccount..... 21,528 13.56 292 4.92 0.75 5.53
Money Market Subaccount....... 40,522 12.42 503 3.59 0.75 3.07
F-203
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial For the period ended
Highlights: At December 31, 2001 December 31, 2001
(continued) ---------------------------------- -----------------------------
Investment
MONYEquity Master Net Assets Income Expense Total
Subaccounts Units Unit Values (000s) Ratio* Ratio** Return***
- ----------- ------- ----------- ---------- ---------- ------- ---------
Enterprise
Accumulation Trust
Equity Subaccount... 532,023 $11.97 $6,370 0.00% 0.75% (19.45)%
Small Company Value
Subaccount........ 204,616 21.20 4,339 0.26 0.75 4.33
Managed Subaccount.. 631,443 13.56 8,562 2.19 0.75 (11.83)
International
Growth Subaccount. 117,820 9.93 1,170 0.68 0.75 (28.41)
High Yield Bond
Subaccount........ 48,673 12.28 598 8.85 0.75 5.14
Growth Subaccount... 28,653 8.46 243 0.48 0.75 (13.23)
Growth and Income
Subaccount........ 65,041 8.63 561 0.89 0.75 (12.56)
Capital
Appreciation
Subaccount........ 11,976 7.42 89 0.70 0.75 (19.78)
Balanced Subaccount
(1)............... 0(/\/\) 9.18 0(/\/\/\) 4.18(/\) 0.75(/\) (8.20)
Equity Income
Subaccount (2).... 231 9.35 2 1.66(/\) 0.75(/\) (6.50)
Multi-Cap Growth
Subaccount (3).... 572 8.76 5 0.00(/\) 0.75(/\) (12.40)
Small Company
Growth Subaccount
(4)............... 476 10.51 5 0.00(/\) 0.75(/\) 5.10
Mid-Cap Growth
Subaccount (4).... 379 9.49 4 0.00(/\) 0.75(/\) (5.10)
Worldwide Growth
Subaccount (5).... 0(/\/\) 10.01 0(/\/\/\) 0.00(/\) 0.75(/\) 0.10
Dreyfus
Dreyfus Stock Index
Subaccount........ 19,709 7.96 157 0.51 0.75 (12.91)
Dreyfus Socially
Responsible
Growth Subaccount
(6)............... 44 8.57 0(/\/\/\) 0.00(/\) 0.75(/\) (14.30)
Fidelity Variable
Insurance
Products Funds
VIP Growth
Subaccount........ 26,701 7.51 200 0.00 0.75 (18.37)
VIP II Contrafund
Subaccount........ 13,866 8.21 114 0.59 0.75 (13.03)
VIP III Growth
Opportunities
Subaccount (6).... 199 9.27 2 0.00(^) 0.75(/\) (7.30)
Janus Aspen Series
Aggressive Growth
Subaccount (6).... 413 8.04 3 0.00(/\) 0.75(/\) (19.60)
Balanced Subaccount
(5)............... 1,435 9.79 14 4.93(/\) 0.75(/\) (2.10)
Capital
Appreciation
Subaccount........ 39,919 6.46 258 1.34 0.75 (22.36)
Worldwide Growth
Subaccount........ 38,546 6.19 238 0.53 0.75 (23.01)
- ----------
* This ratio represents the amount of dividend income, excluding
distributions from net realized gains, received by the subaccount from the
underlying fund, net of investment advisory fees assessed by the underlying
fund's investment adviser and other expenses of the underlying fund,
divided by the average net assets of the subaccount. These ratios exclude
those expenses, such as mortality and expense charges, that result in
direct reductions in the net asset value per Unit. The recognition of
dividend income by the subaccount is affected by the timing of the
declaration of dividends by the underlying fund in which the subaccounts
invest.
** This ratio represents the annual contract expenses of the separate account,
consisting primarily of mortality and expense charges, for each period
indicated. The ratio includes only those expenses that result in a direct
reduction to net asset value per Unit. Charges made directly to
contractholder accounts by redemption of Units and expenses of the
respective underlying fund are excluded from this ratio.
F-204
MONY
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights: (continued)
*** Represents the total return for the period indicated, including
changes in the value of the underlying fund, and reflect deductions
for all items included in the Expense Ratio. The Total Return does not
include any expenses assessed through the redemption of Units; the
Total Return would have been lower had such expenses been included in
the calculation. Total returns for periods less than one year are not
annualized.
(/\) Annualized
(/\/\) Amounts round to less than one
(/\/\/\) Amounts round to less than one thousand dollars
(1) For the period May 4, 2001 (commencement of operations) through
December 31, 2001.
(2) For the period June 19, 2001 (commencement of operations) through
December 31, 2001.
(3) For the period May 18, 2001 (commencement of operations) through
December 31, 2001.
(4) For the period August 8, 2001 (commencement of operations) through
December 31, 2001.
(5) For the period June 13, 2001 (commencement of operations) through
December 31, 2001.
(6) For the period May 15, 2001 (commencement of operations) through
December 31, 2001.
F-205
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of Subaccounts of MONY Variable Account L
In our opinion, the accompanying combined statements of assets and liabilities
and the related combined statements of operations and of changes in net assets
present fairly, in all material respects, the combined financial position of
Subaccounts of MONY Variable Account L at December 31, 2001, and the combined
results of their operations and the changes in their combined net assets for
the periods presented, in conformity with accounting principles generally
accepted in the United States of America. These combined financial statements
are the responsibility of MONY Life Insurance Company's management; our
responsibility is to express an opinion on these combined financial statements
based on our audits. We conducted our audits of these combined financial
statements in accordance with auditing standards generally accepted in the
United States of America, 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, which included confirmation of investments at December 31, 2001 by
correspondence with the underlying funds' transfer agents, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
April 12, 2002
F-206
MONY
Variable Account L
COMBINED STATEMENT OF ASSETS & LIABILITIES
December 31, 2001
ASSETS
Investments at cost......................................... $42,926,621
===========
Investments in Funds, at net asset value.................... $33,475,266
Amounts due from MONY....................................... 59,513
Amounts due from Funds...................................... 22,838
-----------
Total assets......................................... 33,557,617
-----------
LIABILITIES
Amounts due to MONY......................................... 33,296
Amounts due to Funds........................................ 59,513
-----------
Total liabilities.................................... 92,809
-----------
Net assets.................................................. $33,464,808
===========
Net assets consist of:
Contractholders' net payments............................. $35,027,747
Undistributed net investment income....................... 11,799,967
Accumulated net realized loss on investments.............. (3,911,551)
Net unrealized depreciation of investments................ (9,451,355)
-----------
Net assets.................................................. $33,464,808
===========
See notes to combined financial statements.
F-207
MONY
Variable Account L
COMBINED STATEMENT OF OPERATIONS
For the year ended December 31, 2001
Dividend income............................................. $ 382,920
Distributions from net realized gains....................... 3,045,967
Mortality and expense risk charges.......................... (197,413)
-----------
Net investment income....................................... 3,231,474
-----------
Realized and unrealized loss on investments:
Net realized loss on investments.......................... (3,270,716)
Net change in unrealized depreciation of investments...... (3,560,698)
-----------
Net realized and unrealized loss on investments............. (6,831,414)
-----------
Net decrease in net assets resulting from operations........ $(3,599,940)
===========
See notes to combined financial statements.
F-208
MONY
Variable Account L
COMBINED STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31,
2001 2000
----------- -----------
From operations:
Net investment income..................................... $ 3,231,474 $ 5,761,321
Net realized loss on investments.......................... (3,270,716) (809,748)
Net change in unrealized depreciation of investments...... (3,560,698) (5,998,527)
----------- -----------
Net decrease in net assets resulting from operations........ (3,599,940) (1,046,954)
----------- -----------
From unit transactions:
Net proceeds from the issuance of units of subaccounts.... 15,851,567 15,167,354
Net asset value of units redeemed or used to meet
contract obligations of subaccounts...................... (5,925,950) (7,442,948)
----------- -----------
Net increase from unit transactions of subaccounts.......... 9,925,617 7,724,406
----------- -----------
Net increase in net assets.................................. 6,325,677 6,677,452
Net assets beginning of year................................ 27,139,131 20,461,679
----------- -----------
Net assets end of year*..................................... $33,464,808 $27,139,131
=========== ===========
- ----------
* Includes undistributed net investment income of:.......... $11,799,967 $ 8,568,493
=========== ===========
See notes to combined financial statements.
F-209
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS
1. Organization and Business:
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Premium Variable Life Insurance policies
(Strategist) and Variable Universal Life Insurance policies (MONYEquity Master,
MONY Custom Equity Master and MONY Custom Estate Master) (collectively, the
"Variable Life Insurance Policies"). These policies are issued by MONY. For
presentation purposes, the information related to all Variable Life Insurance
Policies issued under the Variable Account are presented for the Variable
Account as a whole.
There are currently twenty-seven MONYEquity Master subaccounts, six
Strategist subaccounts, twenty-eight MONY Custom Equity Master subaccounts and
twenty-six MONY Custom Estate Master subaccounts within the Variable Account
(each hereafter referred to as a "subaccount"). Each subaccount holds assets
that are segregated from all other subaccounts within the Variable Account.
Each subaccount invests only in a corresponding portfolio of the MONY Series
Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust ("Enterprise"),
Dreyfus Stock Index Fund, Dreyfus Socially Responsible Growth Fund, Inc.,
Fidelity Variable Insurance Products Funds, or Janus Aspen Series
(collectively, the "Funds"). The Funds are registered under the 1940 Act as
open-end, diversified, management investment companies. The Fund and Enterprise
are affiliated with MONY.
These combined financial statements should be read in conjunction with the
separate financial statements and footnotes of each of the Variable Life
Insurance Policies which are presented on pages before these combined financial
statements.
2. Significant Accounting Policies:
The preparation of the combined financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates.
Investments:
The investment held by each subaccount in the shares of each of the
respective Funds' portfolios is stated at value which is the net asset value of
the respective portfolio as reported by such portfolio. Net asset values are
based upon market or fair valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolio, the net
asset value is based on the amortized cost of the securities held, which
approximates market value. For the purposes of presentation of the combined
financial statements, investments held at December 31, 2001 by all of the
subaccounts within the Variable Account have been aggregated.
Investment Transactions and Investment Income:
Investments made by the subacccounts in the portfolios of the Funds are
recorded on the trade date. Realized gains and losses on redemption of
investments by the subaccounts in the portfolios of the Funds are determined on
the identified cost-basis. Dividend income and distributions of net realized
gains are recorded by the respective subaccount on ex-dividend date. Investment
income includes dividends from net investment income and distributions of net
realized gains received from the respective portfolios of the Funds. Dividends
and distributions received by the subaccounts are reinvested in additional
shares of the respective portfolios of the Funds.
F-210
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies: (continued)
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for Federal
income tax purposes.
3. Related Party Transactions:
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated by the Variable Account as
contractholder redemptions. For the year ended December 31, 2001, the aggregate
amount deducted for such purposes for all subaccounts within the Variable
Account was $4,704,718.
MONY receives from the subaccounts within the Variable Account amounts
deducted for mortality and expense risks at annual rates ranging from 0.35% to
0.75% of the average daily net assets of each of the respective subaccounts
within the Variable Account. As investment adviser to the Fund, it receives
amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts
as investment adviser to Enterprise, and it receives amounts paid by Enterprise
for those services.
MONY America and MONY receive fees directly from certain Funds for
maintaining and servicing policyholders' accounts. During the year ended
December 31, 2001, MONY received $4,672 in aggregate from certain Funds in
connection with the subaccounts within the Variable Account.
4. Other:
At December 31, 2001, the aggregate net assets of all subaccounts within the
Variable Account investing in a portfolio of the Funds were as follows:
MONY Series Fund, Inc.
Intermediate Term Bond Subaccount........................... $ 189,463
Long Term Bond Subaccount................................... 378,761
Government Securities Subaccount............................ 307,573
Money Market Subaccount..................................... 2,233,395
Equity Growth Subaccount.................................... 57,261
Equity Income Subaccount.................................... 40,942
Diversified Subaccount...................................... 87,779
F-211
MONY
Variable Account L
NOTES TO COMBINED FINANCIAL STATEMENTS (continued)
4. Other: (continued)
Enterprise Accumulation Trust
Equity Subaccount........................................... $ 7,068,216
Small Company Value Subaccount.............................. 4,638,084
Managed Subaccount.......................................... 8,868,405
International Growth Subaccount............................. 1,287,365
High Yield Bond Subaccount.................................. 687,891
Growth Subaccount........................................... 896,796
Growth and Income Subaccount................................ 1,068,135
Small Company Growth Subaccount............................. 320,316
Equity Income Subaccount.................................... 101,233
Capital Appreciation Subaccount............................. 373,458
Multi-Cap Growth Subaccount................................. 443,405
Balanced Subaccount......................................... 61,101
Emerging Countries Subaccount............................... 1,631
Worldwide Growth Subaccount................................. 4,070
Mid-Cap Growth Subaccount................................... 15,378
Dreyfus
Dreyfus Stock Index Subaccount.............................. 885,986
Dreyfus Socially Responsible Growth Subaccount.............. 97,794
Fidelity Variable Insurance Products Funds
VIP Growth Subaccount....................................... 693,634
VIP II Contrafund Subaccount................................ 472,407
VIP III Growth Opportunities Subaccount..................... 83,352
Janus Aspen Series
Aggressive Growth Subaccount................................ 439,413
Balanced Subaccount......................................... 297,810
Capital Appreciation Subaccount............................. 603,215
Worldwide Growth Subaccount................................. 760,539
-----------
Total Net Assets--Combined Variable Account L............... $33,464,808
===========
During the year ended December 31, 2001, the aggregate cost of shares
purchased and the aggregate proceeds from shares redeemed of the portfolios of
the Funds by all of the subaccounts within the Variable Account were
$17,522,350 and $7,792,102, respectively.
F-212
(THIS PAGE INTENTIONALLY LEFT BLANK)
F-213
(THIS PAGE INTENTIONALLY LEFT BLANK)
F-214
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2002 and December 31, 2001
June 30, December 31,
2002 2001
--------- ------------
($ in millions)
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value............. $ 7,294.8 $ 6,973.5
Equity securities available-for-sale, at fair value..................... 286.4 297.5
Mortgage loans on real estate........................................... 1,757.8 1,809.7
Policy loans............................................................ 1,212.0 1,229.0
Other invested assets................................................... 363.4 347.5
--------- ---------
10,914.4 10,657.2
========= =========
Cash and cash equivalents................................................ 369.6 305.0
Accrued investment income................................................ 211.6 192.9
Amounts due from reinsurers.............................................. 567.6 595.8
Deferred policy acquisition costs........................................ 1,237.6 1,233.8
Other assets............................................................. 579.7 556.0
Assets transferred in Group Pension Transaction (Note 4)................. 4,581.9 4,650.4
Separate account assets.................................................. 4,672.4 5,195.2
--------- ---------
Total assets...................................................... $23,134.8 $23,386.3
========= =========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits................................................... $ 7,916.3 $ 7,870.0
Policyholders' account balances.......................................... 2,424.9 2,337.1
Other policyholders' liabilities......................................... 271.5 281.1
Amounts due to reinsurers................................................ 77.0 74.6
Accounts payable and other liabilities................................... 813.0 816.1
Demand note payable to affiliate......................................... 169.1 --
Long term debt........................................................... 216.9 216.9
Current federal income taxes payable..................................... 88.8 109.1
Liabilities transferred in Group Pension Transaction (Note 4)............ 4,513.2 4,586.5
Separate account liabilities............................................. 4,669.5 5,192.3
--------- ---------
Total liabilities................................................. $21,160.2 $21,483.7
========= =========
Commitments and contingencies (Note 5)
Common stock, $1.00 par value; 2.5 million shares authorized;
2.5 and 2.5 million shares issued and outstanding at June 30, 2002 and
December 31, 2001, respectively....................................... 2.5 2.5
Capital in excess of par................................................. 1,628.6 1,628.6
Retained earnings........................................................ 247.2 233.4
Accumulated other comprehensive income................................... 96.3 38.1
--------- ---------
Total shareholder's equity........................................ 1,974.6 1,902.6
--------- ---------
Total liabilities and shareholders' equity........................ $23,134.8 $23,386.3
========= =========
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-215
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
For the Three-month Periods Ended June 30, 2002 and 2001
2002 2001
------ ------
($ in millions)
Revenues:
Premiums.............................................. $169.9 $173.4
Universal life and investment-type product policy fees 52.5 52.3
Net investment income................................. 175.5 185.8
Net realized (losses) gains on investments............ (25.5) 3.0
Group Pension Profits (Note 4)........................ 7.5 9.3
Other income.......................................... 39.7 54.3
------ ------
419.6 478.1
------ ------
Benefits and Expenses:
Benefits to policyholders............................. 199.5 194.5
Interest credited to policyholders' account balances.. 27.9 27.0
Amortization of deferred policy acquisition costs..... 38.0 28.3
Dividends to policyholders............................ 56.8 60.6
Other operating costs and expenses.................... 108.5 127.6
------ ------
430.7 438.0
------ ------
(Loss)/Income before income taxes..................... (11.1) 40.1
Income tax (benefit)/expense.......................... (3.9) 12.3
------ ------
Net (loss)/income..................................... (7.2) 27.8
Other comprehensive income/(loss), net................ 74.5 (23.1)
------ ------
Comprehensive income.................................. $ 67.3 $ 4.7
====== ======
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-216
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
For the Six-month Periods Ended June 30, 2002 and 2001
2002 2001
------ ------
($ in millions)
Revenues:
Premiums.................................................... $334.3 $338.5
Universal life and investment-type product policy fees...... 101.5 102.0
Net investment income....................................... 363.6 365.1
Net realized (losses) gains on investments.................. (27.9) 5.5
Group Pension Profits (Note 4).............................. 15.2 19.2
Other income................................................ 86.4 94.8
------ ------
873.1 925.1
------ ------
Benefits and Expenses:
Benefits to policyholders................................... 390.2 392.2
Interest credited to policyholders' account balances........ 55.8 55.3
Amortization of deferred policy acquisition costs........... 70.8 65.5
Dividends to policyholders.................................. 118.3 115.2
Other operating costs and expenses.......................... 222.2 232.2
------ ------
857.3 860.4
------ ------
Income before income taxes.................................. 15.8 64.7
Income tax expense.......................................... 2.0 20.7
------ ------
Net income.................................................. 13.8 44.0
Other comprehensive income/(loss), net...................... 58.2 (4.1)
------ ------
Comprehensive income........................................ $ 72.0 $ 39.9
====== ======
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-217
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S
EQUITY
Six-month Period Ended June 30, 2002
Accumulated
Capital Other Total
Common In Excess Retained Comprehensive Shareholder's
Stock of Par Earnings Income Equity
------ --------- -------- ------------- -------------
($ in millions)
Balance, December 31, 2001. $2.5 $1,628.6 $233.4 $38.1 $1,902.6
Comprehensive income:
Net income................ 13.8 13.8
Other comprehensive (1). 58.2 58.2
--------
Comprehensive........... 72.0
--------
Balance, June 30, 2002..... $2.5 $1,628.6 $247.2 $96.3 $1,974.6
==== ======== ====== ===== ========
- ----------
(1)Represents unrealized gains on investments (net of unrealized losses, the
effect of unrealized gains on deferred acquisition costs and dividends to
policyholders), reclassification adjustments, minimum pension liability and
taxes.
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-218
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six-month Periods Ended June 30, 2002 and 2001
2002 2001
------- -------
($ in millions)
Net cash used in operating activities............................................................ $ (3.9) $ (28.7)
Cash flows from investing activities:
Sales, maturities or repayment of:
Fixed maturities securities..................................................................... 548.5 748.8
Equity securities............................................................................... 9.8 34.2
Policy loans, net............................................................................... 17.0 12.1
Other invested assets........................................................................... 149.0 139.8
Acquisitions of investments:
Fixed maturities securities..................................................................... (783.2) (554.9)
Equity securities............................................................................... (14.0) 10.5
Other, net...................................................................................... (114.9) (229.5)
Property, plant and equipment, net.............................................................. (9.1) (9.7)
------- -------
Net cash (used in)/provided by investing activities.............................................. $(196.9) $ 151.3
------- -------
Cash flows from financing activities:
Issuance of demand note payable to affiliate..................................................... 169.1 --
Repayment of debt................................................................................ -- (0.1)
Receipts from annuity and universal life policies credited to policyholders' account balances (1) 511.2 571.1
Return of policyholder account balances on annuity and universal life policies (1)............... (414.9) (530.5)
------- -------
Net cash provided by financing activities........................................................ 265.4 40.5
------- -------
Net increase in cash and cash equivalents........................................................ 64.6 163.1
Cash and cash equivalents, beginning of period................................................... 305.0 499.6
------- -------
Cash and cash equivalents, end of period......................................................... $ 369.6 $ 662.7
======= =======
- ----------
(1) Includes exchanges to a new FPVA product series.
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-219
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Description of Business:
The MONY Life Insurance Company ( "MONY Life") and its subsidiaries (MONY
Life and its subsidiaries are collectively referred to herein as the
"Company"), provides life insurance, annuities, corporate-owned and bank-owned
life insurance ("COLI/BOLI") products, mutual funds, securities brokerage,
asset management, and business and estate planning services. The Company
distributes its products and services to individuals and institutional clients
through a career agency sales force and financial advisors and brokers of its
securities broker-dealer and mutual fund subsidiaries (hereafter referred to as
"Proprietary Distribution"). In addition, the Company distributes it products
and services through what it defines as complementary distribution channels
("Complementary Distribution"), which principally consist of independent
third-party insurance brokerage general agencies and securities broker-dealers,
as well as its corporate marketing team. The Company principally sells its
products in all 50 of the United States, the District of Columbia, the U.S.
Virgin Islands, Guam and the Commonwealth of Puerto Rico and currently insures
or provides other financial services to more than one million people.
MONY Life's principal wholly owned direct and indirect operating
subsidiaries include: (i) MONY Life Insurance Company of America ("MLOA"), an
Arizona domiciled life insurance company, (ii) Enterprise Capital Management
("Enterprise" or "ECM"), a distributor of both proprietary and non-proprietary
mutual funds, (iii) U.S. Financial Life Insurance Company ("USFL"), an Ohio
domiciled insurer underwriting specialty risk life insurance business, (iv)
MONY Securities Corporation ("MSC"), a registered securities broker-dealer and
investment advisor whose products and services are distributed through MONY
Life's career agency sales force, (v) Trusted Securities Advisors Corp.
("Trusted Advisors"), which distributes investment products and services
through a network of accounting professionals, (vi) MONY Brokerage, Inc.
("MBI"), a licensed insurance broker, which principally provides MONY Life's
career agency sales force with access to life, annuity, small group health, and
specialty insurance products written by other insurance companies so they can
meet the insurance and investment needs of their customers, and (vii) MONY Life
Insurance Company of the Americas, Ltd. ("MLICA"), which provides life
insurance, annuity and investment products to nationals of certain Latin
American countries.
2. Summary of Significant Accounting Policies:
Basis of Presentation
The accompanying consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the United States
of America ("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, (iii) valuation allowances for
mortgage loans and impairment writedowns for other invested assets, and (iv)
litigation contingencies and restructuring charges. Certain reclassifications
have been made in the amounts presented for prior periods to conform those
periods to the current presentation.
New Accounting Pronouncements
In October 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets" ("SFAS 144"). SFAS 144
establishes a single accounting model for the impairment or disposal of
long-lived assets, including assets to be held and used, assets to be disposed
of by other than sale, and assets to be disposed of by sale. The provisions of
SFAS 144 are effective for financial statements issued for fiscal years
beginning after December 15, 2001 and interim periods within such year, except
that assets held for sale as a result of disposal activities initiated prior to
the effective date of SFAS 144 may be accounted for in accordance with prior
guidance until the end of the fiscal year in which SFAS 144 is effective. SFAS
144 retains many of the same provisions of SFAS 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
("SFAS 121"). In addition to retaining the SFAS 121 requirements, SFAS 144
requires companies to present the results of operations of components
F-220
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
of the entity that are held for sale as discontinued operations in the
consolidated statements of income and comprehensive income. The Company has
real estate to be disposed of that meet the definition of a component of the
entity. Substantially all the Company's real estate to be disposed of resulted
from disposal activities initiated prior to the effective date of SFAS 144.
Pre-tax income from real estate to be disposed of recorded for the three and
six-month periods ended June 30, 2002 was approximately $10.7 million and $17.8
million respectively. The carrying value of the Company's real estate that is
classified as "To be Disposed Of" and that is classifed as "held for investment
was $195.9 million and $45.4 million, respectively, at June 30, 2002. These
amounts are reflected in the income statement caption entitled "Other Invested
Assets".
3. Segment Information:
The Company's business activities consist of the following: protection
product operations, accumulation product operations, mutual fund operations,
securities broker-dealer operations, insurance brokerage operations, and
certain insurance lines of business no longer written by the Company (the
"run-off businesses"). These business activities represent the Company's
operating segments. Except as discussed below, these segments are managed
separately because they either provide different products or services, are
subject to different regulation, require different strategies, or have
different technology requirements.
Management considers the Company's mutual fund operations to be an integral
part of the products offered by the Company's accumulation products segment,
since substantially all the mutual funds sold by the Company are offered
through, and in conjunction with, the products marketed by the accumulation
products segment. Accordingly, for management purposes (including, performance
assessment and making decisions regarding the allocation of resources), the
Company aggregates its mutual fund operations with its accumulation products
segment.
Of the aforementioned segments, only the protection products segment and the
accumulation products segment qualify as reportable segments in accordance with
SFAS 131. All of the Company's other segments are combined and reported in the
other products segment.
Products comprising the protection products segment primarily include a wide
range of insurance products, including: whole life, term life, universal life,
variable universal life, corporate-owned life insurance, last survivor variable
universal life, last survivor universal life, group universal life and
special-risk products. In addition, included in the protection products segment
are: (i) the assets and liabilities transferred pursuant to the Group Pension
Transaction, as well as the Group Pension Profits (see Note 4), (ii) the Closed
Block assets and liabilities, as well as the Contribution from the Closed Block
(See Note 7), and (iii) the Company's disability income insurance business.
Products comprising the accumulation products segment primarily include
flexible premium variable annuities, single premium deferred annuities,
immediate annuities, proprietary mutual funds, investment management services,
and certain other financial services products. The Company's other products
segment primarily consists of the securities broker-dealer operation, the
insurance brokerage operation, and the run-off businesses. The securities
broker-dealer operation markets the Company's proprietary investment products
and, in addition, provides customers of the Company's protection and
accumulation products access to other non-proprietary investment products
(including stocks, bonds, limited partnership interests, tax-exempt unit
investment trusts and other investment securities). The insurance brokerage
operation provides the Company's field agency force with access to life,
annuity, small group health and specialty insurance products written by other
carriers to meet the insurance and investment needs of its customers. The
run-off businesses primarily consist of group life and health business, as well
as group pension business that was not included in the Group Pension
Transaction.
Set forth in the table below is certain financial information with respect
to the Company's operating segments as of and for each of the three and
six-month periods ended June 30, 2002 and 2001 as well as amounts not allocated
to the segments. Except for various allocations discussed below, the accounting
policies of the segments are the same as those described in the summary of
significant accounting policies. The Company evaluates the performance of each
operating segment based on profit or loss from operations before income taxes
and nonrecurring items (e.g. items of an unusual or infrequent nature). The
Company does not allocate certain non-recurring items to the segments. In
addition, substantially all segment revenues are from external sources.
F-221
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Assets have been allocated to the segments in amounts sufficient to support
the associated liabilities of each segment. In addition, capital is allocated
to each segment in amounts sufficient to maintain a targeted regulatory
risk-based capital ("RBC") level for each segment. Allocations of net
investment income and net realized gains on investments were based on the
amount of assets allocated to each segment. Other costs and operating expenses
were allocated to each of the segments based on: (i) a review of the nature of
such costs, (ii) time studies analyzing the amount of employee compensation
costs incurred by each segment, and (iii) cost estimates included in the
Company's product pricing. Substantially all non-cash transactions and impaired
real estate (including real estate acquired in satisfaction of debt) have been
allocated to the protection products segment.
Segment Summary Financial Information
For the Three-month For the Six-month
Periods Ended June 30, Periods Ended June 30,
---------------------- ----------------------
2002 2001 2002 2001
------ ------ ------ ------
($ in millions) ($ in millions)
Premiums:
Protection Products......................................... $164.5 $169.8 $324.9 $331.4
Accumulation Products....................................... 3.3 1.1 4.8 2.4
Other Products.............................................. 2.1 2.5 4.6 4.7
------ ------ ------ ------
$169.9 $173.4 $334.3 $338.5
====== ====== ====== ======
Universal life and investment-type product policy fees:
Protection Products......................................... $ 39.8 $ 37.1 $ 75.5 $ 71.6
Accumulation Products....................................... 12.6 14.3 24.7 29.5
Other Products.............................................. 0.1 0.9 1.3 0.9
------ ------ ------ ------
$ 52.5 $ 52.3 $101.5 $102.0
====== ====== ====== ======
Net investment income and net realized gains on investments:
Protection Products......................................... $130.6 $153.6 $284.1 $303.5
Accumulation Products....................................... 14.0 20.3 34.6 40.5
Other Products.............................................. 1.8 7.3 8.1 13.3
Reconciling amounts......................................... 3.6 7.6 8.9 13.3
------ ------ ------ ------
$150.0 $188.8 $335.7 $370.6
====== ====== ====== ======
Other income:
Protection Products (1)..................................... $ 5.0 $17.9 $ 18.5 $ 25.6
Accumulation Products....................................... 25.8 27.0 51.6 53.2
Other Products.............................................. 15.1 16.7 28.6 31.4
Reconciling amounts......................................... 1.3 2.0 2.9 3.8
------ ------ ------ ------
$ 47.2 $ 63.6 $101.6 $114.0
====== ====== ====== ======
Amortization of deferred policy acquisition costs:
Protection Products......................................... $ 30.2 $ 24.3 $ 57.1 $ 55.2
Accumulation Products....................................... 7.8 4.0 13.7 10.3
------ ------ ------ ------
$ 38.0 $ 28.3 $ 70.8 $ 65.5
====== ====== ====== ======
Benefits to policyholders: (2)
Protection Products......................................... $198.5 $198.7 $389.9 $397.4
Accumulation Products....................................... 23.2 16.3 39.8 32.4
Other Products.............................................. 3.8 4.5 12.1 12.9
Reconciling amounts......................................... 1.9 2.0 4.2 4.8
------ ------ ------ ------
$227.4 $221.5 $446.0 $447.5
====== ====== ====== ======
F-222
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
For the Three-month For the Six-month
Periods Ended June 30, Periods Ended June 30,
--------------------- ---------------------
2002 2001 2002 2001
------ ------ ------- ------
($ in millions) ($ in millions)
Income (loss) before income taxes:
Protection Products............... $ 3.7 $26.9 $ 31.4 $47.4
Accumulation Products............. (6.3) 12.9 1.8 24.9
Other Products.................... (9.2) 0.4 (17.4) (6.6)
Reconciling amounts............... 0.7 (0.1) -- (1.0)
------ ----- ------ -----
$(11.1) $40.1 $ 15.8 $64.7
====== ===== ====== =====
As of As of
June 30, 2002 December 31, 2001
------------- -----------------
($ in millions)
Assets: (3)
Protection Products (4)........... $16,362.7 $16,188.1
Accumulation Products............. 4,709.6 5,077.7
Other Products.................... 1,125.2 1,125.7
Reconciling amounts............... 937.3 994.8
--------- ---------
$23,134.8 $23,386.3
========= =========
Deferred policy acquisition costs:
Protection Products............... $ 1,089.8 $ 1,087.0
Accumulation Products............. 147.8 146.8
--------- ---------
$ 1,237.6 $ 1,233.8
========= =========
Policyholders' liabilities:
Protection Products (5)........... $10,403.8 $10,366.5
Accumulation Products............. 1,195.0 1,142.5
Other Products.................... 358.0 361.7
Reconciling amounts............... 16.0 16.3
--------- ---------
$11,972.8 $11,887.0
========= =========
Separate account liabilities: (3)
Protection Products (6)........... $ 3,769.3 $ 3,783.7
Accumulation Products............. 3,053.7 3,464.3
Other Products.................... 365.9 429.7
Reconciling amounts............... 639.7 694.1
--------- ---------
$ 7,828.6 $ 8,371.8
========= =========
- ----------
(1)Includes Group Pension Profits, Retail Brokerage and Investment Banking
revenues and other income.
(2)Includes benefits to policyholders and interest credited to policyholders'
account balances.
(3)Each segment includes separate account assets in an amount not less than the
corresponding liability reported.
(4)Includes assets transferred in the Group Pension Transaction of $4,581.9
million and $4,650.4 million as of June 30, 2002 and December 31, 2001,
respectively (see Note 4).
(5)Includes policyholder liabilities transferred in the Group Pension
Transaction of $1,354.1 million and $1,407.0 million as of June 30, 2002 and
December 31, 2001, respectively (see Note 4).
(6)Includes separate account liabilities transferred in the Group Pension
Transaction of $3,159.1 million and $3,179.5 million as of June 30, 2002 and
December 31, 2001 respectively (see Note 4).
F-223
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
The following is a summary of premiums and universal life and
investment-type product policy fees by product for the three and six-month
periods ended June 30, 2002 and 2001.
Three-month Six-month
Periods Ended June 30, Periods Ended June 30,
---------------------- ----------------------
2001 2002 2002 2001
------ ------ ------ ------
($ in millions) ($ in millions)
Premiums:
Individual life........................................ $164.5 $169.7 $324.9 $331.4
Group insurance........................................ 2.1 2.5 4.6 4.7
Disability income insurance............................ 0.1 0.1 0.2 0.2
Other.................................................. 3.2 1.1 4.6 2.2
------ ------ ------ ------
Total............................................... $169.9 $173.4 $334.3 $338.5
====== ====== ====== ======
Universal life and investment-type product policy fees:
Universal life......................................... $ 14.5 $ 17.8 $ 32.8 $ 35.7
Variable universal life................................ 23.2 17.1 38.2 31.2
Group universal life................................... 2.2 2.3 4.6 4.8
Individual variable annuities.......................... 12.6 14.2 24.7 29.4
Individual fixed annuities............................. 0.0 0.9 1.2 0.9
------ ------ ------ ------
Total............................................... $ 52.5 $ 52.3 $101.5 $102.0
====== ====== ====== ======
4. The Group Pension Transaction:
The following sets forth certain summarized financial information relating
to the Group Pension Transaction as of and for the periods indicated, including
information regarding: (i) the general account assets transferred to support
the existing deposits in the Group Pension Transaction (such assets hereafter
referred to as the "AEGON Portfolio"), (ii) the transferred separate account
assets and liabilities, and (iii) the components of revenue and expense
comprising the Group Pension Profits.
As of As of
June 30 2002 December 31, 2001
------------ -----------------
($ in millions)
Assets:
General Account
Fixed Maturities:
available-for-sale, at estimated
fair value (amortized cost;
$1,306.0 million and $1,371.2
million, respectively)............. $1,334.8 $1,400.5
Mortgage loans on real estate........ 24.8 26.5
Cash and cash equivalents............ 39.1 19.4
Other assets ........................ 24.1 24.5
-------- --------
Total general account assets..... 1,422.8 1,470.9
Separate account assets................. 3,159.1 3,179.5
-------- --------
Total assets..................... $4,581.9 $4,650.4
======== ========
Liabilities:
General Account (1).....................
Policyholders' account balances...... $1,354.1 $1,407.0
Separate account liabilities (2)........ $3,159.1 $3,179.5
-------- --------
Total Liabilities................ $4,513.2 $4,586.5
======== ========
- ----------
(1)Includes general account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $69.9 million
and $71.2 million as of June 30, 2002 and December 31, 2001, respectively.
(2)Includes separate account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $11.7 million
and $11.8 million as of June 30, 2002 and December 31, 2001, respectively.
F-224
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
For the For the
Three-Month Six-Month
Periods Ended Periods Ended
June 30, June 30,
------------- -------------
2002 2001 2002 2001
----- ----- ----- -----
($ in millions)
Revenues:
Product policy fees................................. $ 4.6 $ 4.2 $ 9.3 $ 9.5
Net investment income............................... 22.6 25.8 45.8 53.0
Net realized gains on investments................... 0.3 2.0 0.1 3.6
----- ----- ----- -----
Total Revenues............................... 27.5 32.0 55.2 66.1
Benefits and Expenses:
Interest Credited to policyholders' account balances 16.6 18.6 32.4 37.1
Other operating costs and expenses.................. 3.4 4.1 7.6 9.8
----- ----- ----- -----
Total benefits and expenses.................. 20.0 22.7 40.0 46.9
----- ----- ----- -----
Group Pension Profits........................ $ 7.5 $ 9.3 $15.2 $19.2
===== ===== ===== =====
5. Commitments and Contingencies:
Since late 1995 a number of purported class actions have been commenced in
various state and federal courts against MONY Life and MLOA 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
(i.e., 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 Life and
MLOA from canceling policies for failure to make required premium payments,
imposition of a constructive trust and creation of a claims resolution facility
to adjudicate any individual issues remaining after resolution of all
class-wide issues) as opposed to compensatory damages, although they also seek
compensatory damages in unspecified amounts. MONY Life and MLOA have answered
the complaints in each action (except for one being voluntarily held in
abeyance). MONY Life and MLOA have denied any wrongdoing and have 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 of America), 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
MONY Life and MLOA and sold on an alleged "vanishing premium" basis during the
period January 1, 1982 to December 31, 1995. On March 27, 1997, MONY Life and
MLOA 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 MONY Life's
and MLOA's motion for summary judgment and dismissed all claims filed in the
Goshen case against MONY Life and MLOA. 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
F-225
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
limitations. On August 9, 2001, the New York State Appellate Division, First
Department, affirmed the ruling limiting the class to New York purchasers. On
January 15, 2002, the New York State Court of Appeals granted the plaintiffs'
motion for leave to appeal from that decision. On July 2, 2002, the New York
Court of Appeals unanimously affirmed the Appellate Division decision limiting
the class action claims under section 349 of the New York General Business Law
to purchase insurance products in New York. MONY Life and MLOA intend to defend
themselves vigorously against the plaintiffs' sole remaining claim. There can
be no assurance, however, that the present litigation relating to sales
practices will not have a material adverse effect on them.
On November 16, 1999, the MONY Group and MONY Life were served with a
complaint in an action entitled Calvin Chatlos, M.D., and Alvin H. Clement, On
Behalf of Themselves And All Others Similarly Situated v. The MONY Life
Insurance Company, The MONY Group Inc., and Neil D. Levin, Superintendent, New
York Department of Insurance, filed in the United States District Court for the
Southern District of New York. The action purports to be brought as a class
action on behalf of all individuals who had an ownership interest in one or
more in force life insurance policies issued by MONY Life as of November 16,
1998. The complaint alleges that (i) the New York Superintendent of Insurance,
Neil D. Levin, violated Section 7312 of the New York Insurance Law by approving
the Plan of Demutualization, which plaintiffs claim was not fair and adequate,
primarily because it allegedly failed to provide for sufficient assets for the
mechanism established under the plan to preserve reasonable dividend
expectations of the closed block, and (ii) MONY Life violated Section 7312 by
failing to develop and submit to the New York Superintendent a plan of
demutualization that was fair and adequate. The plaintiffs seek equitable
relief in the form of an order vacating and/or modifying the New York
Superintendent's order approving the Plan of Demutualization and/or directing
the New York Superintendent to order MONY Life to increase the assets in the
closed block, as well as unspecified monetary damages, attorneys' fees and
other relief.
In early January 2000, the MONY Group, MONY Life and the New York
Superintendent wrote to the District Court seeking a pre-motion conference
preliminary to the filing of a motion to dismiss the federal complaint on
jurisdictional, federal abstention and timeliness grounds and for failure to
state a claim. Following receipt of those letters, plaintiffs' counsel offered
voluntarily to dismiss their complaint, and a stipulation and order to that
effect was thereafter filed and approved by the court.
On March 27, 2000, plaintiffs filed a new action in New York State Supreme
Court bearing the same caption and naming the same defendants as the previously
filed federal action. The state court complaint differs from the complaint
previously filed in federal court in two primary respects. First, it no longer
asserts a claim for damages against the New York Superintendent, nor does its
prayer for relief seek entry of an order vacating or modifying the New York
Superintendent's decision or requiring the New York Superintendent to direct
MONY Life to place additional assets into the Closed Block. Rather, it seeks an
accounting and an order from the Court directing MONY Life to transfer
additional assets to the Closed Block.
Second, the new complaint contains claims for breach of contract and
fiduciary duty, as well as new allegations regarding the adequacy of the
disclosures contained in the Policyholder Information Booklet distributed to
policyholders soliciting their approval of the plan of demutualization (which
plaintiffs claim violated both the Insurance Law and MONY Life's fiduciary
duties).
In order to challenge successfully the New York Superintendent's approval of
the plan, plaintiffs would have to sustain the burden of showing that such
approval was arbitrary and capricious or an abuse of discretion, made in
violation of lawful procedures, affected by an error of law or not supported by
substantial evidence. In addition, Section 7312 provides that MONY Life may ask
the court to require the challenging party to give security for the reasonable
expenses, including attorneys' fees, which may be incurred by MONY Life or the
New York Superintendent or for which MONY Life may become liable, to which
security MONY Life shall have recourse in such amount as the court shall
determine upon the termination of the action.
The MONY Group, MONY Life and the New York Superintendent moved to dismiss
the state court complaint in its entirety on a variety of grounds. On April 20,
2001, the New York Supreme Court granted both motions and dismissed all claims
against the MONY Group, MONY Life and the New York Superintendent. Plaintiffs
have appealed the dismissal of the claims against the MONY Group, MONY Life and
the New York Superintendent to the New York Appellate Division, First
Department. MONY Group and MONY Life intend to defend themselves vigorously
against plaintiffs' appeal. There can be no assurance, however, that the
present litigation will not have a material adverse effect on them.
F-226
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings (some of which involve demands for
unspecified damages) in connection with its business. In the opinion of
management of the Company, resolution of contingent liabilities, income taxes
and other matters will not have a material adverse effect on the Company's
financial position or results of operations.
At June 30, 2002, the Company had commitments to fund the following: $5.1
million of equity partnership investments, $25.7 million private fixed
maturities with interest rates ranging from 6.15% to 7.7%, $10.5 million of
fixed rate agricultural loans with periodic interest rate reset dates with
initial rates ranging from 6.75% to 7.42%, $181.3 million fixed and floating
rate commercial mortgages with interest rates ranging from 4.34% to 9.25% and
$4.4 million of mezzanine financing with pay rates ranging from 9.0% to 10.0% .
In addition, the Company maintains a syndicated credit facility with
domestic banks aggregating $150.0 million. This facility was renewed in July
2002 with a renewal date in July 2003. In accordance with certain covenants of
the facility, the Company is required to maintain a certain level of statutory
tangible net worth and debt to capitalization ratio. The purpose of this
facility is to provide additional liquidity for any unanticipated short-term
cash needs the Company might experience and also to serve as support for the
Company's $150.0 million commercial paper program which was activated in the
third quarter of 2000. The Company has complied with all covenants of the
facility, has not borrowed against the line of credit since its inception, and
does not have any commercial paper outstanding as of June 30, 2002.
6. Demand Note Payable to Affiliate
On June 26, 2002, the Company borrowed $169.1 million from The MONY Group
Inc. ("MONY Group") in exchange for two notes payable in the amount of $121.0
million and $48.1 million, respectively. The MONY Group is the sole member of
the Company's parent, MONY Holdings, LLC. The notes bear interest at a floating
rate equal to Federal Funds Rate +0.15% per annum and are payable on demand.
Interest is payable quarterly to the MONY Group. The carrying value of the
notes as of June 30, 2002 is $169.1 million.
F-227
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
7. Closed Block:
The following tables set forth certain summarized financial information
relating to the Closed Block, as of and for the periods indicated:
June 30, December 31,
2002 2001
-------- ------------
($ in millions)
Assets:
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost; $3,803.5 and
$3,780.9, respectively)........................................................... $4,028.2 $3,868.9
Mortgage loans on real restate..................................................... 566.2 622.1
Real estate to be disposed of...................................................... 8.0 --
Policy loans....................................................................... 1,120.1 1,144.3
Cash and cash equivalents.......................................................... 72.8 56.2
Amounts due from broker............................................................ 0.6 6.2
Premiums receivable................................................................ 9.2 12.5
Deferred policy acquisition costs.................................................. 471.3 500.6
Other assets....................................................................... 225.4 219.3
-------- --------
Total Closed Block assets..................................................... $6,501.8 $6,430.1
======== ========
Liabilities:
Future policy benefits............................................................. $6,885.5 $6,869.8
Policyholders' account balances.................................................... 291.1 292.9
Other policyholders' liabilities................................................... 157.1 162.2
Other liabilities.................................................................. 223.8 163.9
-------- --------
Total Closed Block liabilities................................................ $7,557.5 $7,488.8
======== ========
For the three-month For the six-month
Periods Ended June 30, Periods Ended June 30,
---------------------- ----------------------
2002 2001 2002 2001
------ ------ ----- ------
($ in millions)
Revenues:
Premiums......................................................... $127.6 $138.2 248.0 $267.5
Net investment income............................................ 98.5 99.1 196.7 199.0
Net realized (losses)/gains on investments....................... (1.8) 2.1 (2.9) 2.0
Other income..................................................... 0.5 0.5 0.9 1.0
------ ------ ----- ------
Total revenues............................................ 224.8 239.9 442.7 469.5
====== ====== ===== ======
Benefits and Expenses:
Benefits to policyholders........................................ 142.7 152.0 274.8 293.4
Interest credited to policyholders' account balances............. 2.1 2.1 4.2 4.2
Amortization of deferred policy acquisition cost................. 12.5 11.0 24.2 32.2
Dividends to policyholders....................................... 56.0 59.9 116.2 113.4
Other operating costs and expenses............................... 2.0 2.4 3.1 4.1
------ ------ ----- ------
Total benefits and expenses............................... 215.3 227.4 422.5 447.3
------ ------ ----- ------
Contribution from the Closed Block........................ $ 9.5 $ 12.5 20.2 $ 22.2
====== ====== ===== ======
F-228
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
In each of the second quarters ended June 30, 2002 and 2001 charges for
other than temporary impairments on fixed maturities in the closed block
amounting to $6.1 million and $4.7 million, respectively were recorded. There
were no such charges in the first quarters ended March 31, 2002 and 2001.
8. Goodwill and Other Intangible Assets--Adoption of Statement 142
In accordance with the adoption of SFAS No. 142, Goodwill and Other
Intangible Assets ("SFAS 142") goodwill is periodically tested for impairment
and is no longer amortized. The following tables set forth the impact of the
adoption of SFAS 142 on the Company's net income and earnings per share amounts
for the three and six-month periods ended June 30, 2002 and 2001. In addition,
as required by SFAS 142, management tested the carrying value of the Company's
goodwill and determined that no impairment exists.
Three-month Six-month
Periods Ended June 30, Periods Ended June 30,
---------------------- ----------------------
2002 2001 2002 2001
------ ----- ----- -----
($ in millions except, earnings per share amounts)
Reported net (loss) income............................. $(11.0) $22.3 $ 3.3 $35.6
Add back: Goodwill amortization........................ -- 0.4 -- 0.5
------ ----- ----- -----
Adjusted net (loss) income............................. $(11.0) $22.7 $ 3.3 $36.1
====== ===== ===== =====
Basic earnings per share:
Reported net (loss) income............................. (0.23) 0.45 0.07 0.73
Goodwill amortization.................................. -- 0.01 -- 0.01
------ ----- ----- -----
Adjusted net (loss) income............................. (0.23) 0.46 0.07 0.74
====== ===== ===== =====
Diluted earnings per share:
Reported net (loss) income............................. (0.23) 0.44 0.07 0.70
Goodwill amortization.................................. -- 0.01 -- 0.01
------ ----- ----- -----
Adjusted net (loss) income............................. (0.23) 0.45 0.07 0.71
====== ===== ===== =====
All of the goodwill amortization recorded for the three month and six-month
periods ended June 30, 2001 was included in the Protection Products segment.
F-229
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
9. Reorganization and Other Charges:
During 2001, the Company recorded "Reorganization Charges" aggregating
approximately $56.8 million on a pre-tax basis taken in connection with the
Company's previously announced reorganization of certain of its businesses. Of
the reorganization charges recorded, approximately $10.3 million of severance
benefits relating to headcount reductions in the Company's home office and
career agency system and $8.7 million of other reorganization charges met the
definition of "restructuring charges" as defined by Emerging Issues Task Force
Consensus 94-3, "Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring)". The liability relating to the aforementioned
restructuring charges at December 31, 2001 was $12.6 million and was reduced by
actual payments and revisions to estimates made during the first six months of
2002 as follows:
Payments/
December 31, Revisions to June 30,
2001 Estimates 2002
------------ ------------ --------
Restructuring Charges Liability:
Severance benefits....................... $ 8.1 $(3.9) $4.2
Other reorganization charges............. 4.5 (0.8) 3.7
----- ----- ----
Total Restructuring Charges Liability. $12.6 $(4.7) $7.9
===== ===== ====
10. Subsequent Event:
In July 2002, pursuant to a jury verdict, the Company was found liable and
ordered to pay a former joint venture partner some of the proceeds distributed
to the Company from the disposition of a real estate asset in 1999, which was
formerly owned by the joint venture. As a result of the verdict, which the
Company is appealing, the Company recorded a charge aggregating $14.1 million
pre-tax in its results of operations for the quarter ended June 30, 2002.
Approximately $7.2 million of this charge is reflected in the income statement
caption entitled "net realized gains/(losses) on investments" because it
represents the return of proceeds originally included in the determination of
the realized gain recognized by the Company in 1999 upon receipt of the
aforementioned distribution. The balance of the charge, which is reflected in
the income statement caption entitled "other operating costs and expenses"
represents management's best estimate of the interest that the court will
require the Company to pay its former joint venture partner, as well as legal
costs.
F-230
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
MONY Life Insurance Company
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of income and comprehensive income, of changes in
shareholder's equity and of cash flows present fairly, in all material
respects, the financial position of the MONY Life Insurance Company and
Subsidiaries (the "Company") at December 31, 2001 and 2000, and the results of
their operations and their cash flows for each of the three years in the period
ended December 31, 2001, in conformity with accounting principles generally
accepted in the United States of America. 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 of America, 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 our
opinion.
PricewaterhouseCoopers LLP
New York, New York
February 7, 2002
F-231
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2001 and 2000
2001 2000
--------- ---------
($ in millions)
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair value (Note 5)............................. $ 6,973.5 $ 6,693.0
Equity securities available-for-sale, at fair value (Note 5)..................................... 297.5 328.6
Mortgage loans on real estate (Note 6)........................................................... 1,809.7 1,754.7
Policy loans..................................................................................... 1,229.0 1,264.6
Other invested assets............................................................................ 347.5 312.0
--------- ---------
10,657.2 10,352.9
========= =========
Cash and cash equivalents........................................................................... 305.0 499.5
Accrued investment income........................................................................... 192.9 71.7
Amounts due from reinsurers......................................................................... 595.8 491.6
Deferred policy acquisition costs (Note 8).......................................................... 1,233.8 1,209.7
Other assets........................................................................................ 556.0 781.1
Assets transferred in Group Pension Transaction (Note 11)........................................... 4,650.4 4,927.7
Separate account assets............................................................................. 5,195.2 5,868.1
--------- ---------
Total assets................................................................................. $23,386.3 $24,202.3
========= =========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits.............................................................................. $ 7,870.0 $ 7,794.5
Policyholders' account balances..................................................................... 2,337.1 2,191.3
Other policyholders' liabilities.................................................................... 281.1 295.9
Amounts due to reinsurers........................................................................... 74.6 87.3
Accounts payable and other liabilities.............................................................. 816.1 650.3
Short term debt (Note 14)........................................................................... -- 52.3
Long term debt (Note 14)............................................................................ 216.9 217.0
Current federal income taxes payable................................................................ 109.1 124.7
Liabilities transferred in Group Pension Transaction (Note 11)...................................... 4,586.5 4,897.2
Separate account liabilities........................................................................ 5,192.3 5,865.3
--------- ---------
Total liabilities............................................................................ $21,483.7 $22,175.8
========= =========
Commitments and contingencies (Note 16)
Common stock, $1.00 par value; 2.5 million shares authorized; 2.5 and 2.5 million shares issued and
outstanding at December 31, 2001 and 2000 respectively........................................... 2.5 2.5
Capital in excess of par............................................................................ 1,628.6 1,628.6
Retained earnings................................................................................... 233.4 382.4
Accumulated other comprehensive income.............................................................. 38.1 13.0
--------- ---------
Total shareholder's equity................................................................... 1,902.6 2,026.5
--------- ---------
Total liabilities and shareholder's equity................................................... $23,386.3 $24,202.3
========= =========
See accompanying notes to consolidated financial statements.
F-232
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999
-------- -------- --------
($ in millions)
Revenues:
Premiums................................................ $ 695.3 $ 700.5 $ 717.1
Universal life and investment-type product policy fees.. 207.2 205.8 196.3
Net investment income (Note 4).......................... 676.9 970.9 900.0
Net realized (losses) gains on investments (Note 4)..... (12.3) 37.5 125.1
Group Pension Profits (Note 11)......................... 30.7 37.1 63.0
Other income............................................ 189.1 223.3 197.2
-------- -------- --------
1,786.9 2,175.1 2,198.7
-------- -------- --------
Benefits and expenses:
Benefits to policyholders............................... 814.7 787.8 787.1
Interest credited to policyholders' account balances.... 110.5 110.6 115.5
Amortization of deferred policy acquisition costs....... 158.8 139.1 137.8
Dividends to policyholders.............................. 236.6 235.5 230.7
Other operating costs and expenses...................... 519.4 503.3 546.7
Demutualization expenses................................ -- -- 2.0
-------- -------- --------
1,840.0 1,776.3 1,819.8
-------- -------- --------
(Loss) income before income taxes and extraordinary item (53.1) 398.8 378.9
Income tax (benefit) expense............................ (19.1) 134.8 131.4
-------- -------- --------
(Loss) income before extraordinary item................. (34.0) 264.0 247.5
Extraordinary item (Note 14)............................ -- 37.7 --
-------- -------- --------
Net (loss) income....................................... (34.0) 226.3 247.5
Other comprehensive income (loss), net (Note 4)......... 25.1 42.4 (181.8)
-------- -------- --------
Comprehensive (loss) income............................. $ (8.9) $ 268.7 $ 65.7
======== ======== ========
See accompanying notes to consolidated financial statements.
F-233
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
Years Ended December 31, 2001, 2000, and 1999
Accumulated
Capital Other Total
Common In Excess Retained Comprehensive Shareholder's
Stock of Par Earnings Income Equity
------ --------- -------- ------------- -------------
($ in millions)
Balance, December 31, 1998....................................... $2.0 $1,564.1 $ 8.6 $ 152.4 $1,727.1
Change in number of authorized and outstanding Shares............ 0.5 (0.5)
Comprehensive income:
Net income..................................................... 247.5 247.5
Other comprehensive income:....................................
Unrealized gains on investments, net of unrealized losses,
Reclassification adjustments, and taxes (Note 4)............ (181.8) (181.8)
--------
Comprehensive income/(loss)...................................... 65.7
---- -------- ------- --------
Balance, December 31, 1999....................................... 2.5 1,563.6 256.1 (29.4) 1,792.8
Dividends........................................................ (100.0) (100.0)
Capital Contribution............................................. 65.0 65.0
Comprehensive income:
Net income..................................................... 226.3 226.3
Other comprehensive income:....................................
Unrealized losses on investments net of unrealized gains,
Reclassification adjustments, and taxes (Note 4) 46.2 46.2
Minimum pension liability adjustment............................. (3.8) (3.8)
------- --------
Other comprehensive income..................................... 42.4 42.4
--------
Comprehensive income/(loss)...................................... 268.7
---- -------- ------- ------- --------
Balance, December 31, 2000....................................... 2.5 1,628.6 382.4 13.0 2,038.9
Dividends........................................................ (115.0) (115.0)
Comprehensive income:
Net loss....................................................... (34.0) (34.0)
Other comprehensive income:....................................
Unrealized losses on investments net of unrealized gains,
Reclassification adjustments, and taxes (Note 4)............ 36.6 36.6
Minimum pension liability adjustment............................. (11.5) (11.5)
------- --------
Other comprehensive income....................................... 25.1 25.1
--------
Comprehensive income/(loss)...................................... (8.9)
---- -------- ------- ------- --------
Balance, December 31, 2001....................................... $2.5 $1,628.6 $ 233.4 $ 38.1 $1,902.6
==== ======== ======= ======= ========
See accompanying notes to consolidated financial statements.
F-234
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999
--------- --------- ---------
($ in millions)
Cash flows from operating activities (see Note 3):
Net (loss) income............................................................................ $ (34.0) $ 226.3 $ 247.5
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Interest credited to policyholders' account balances....................................... 92.0 99.9 111.9
Universal life and investment-type product policy fee income............................... (117.8) (127.4) (143.5)
Capitalization of deferred policy acquisition costs........................................ (194.5) (175.0) (148.8)
Amortization of deferred policy acquisition costs.......................................... 158.8 139.1 132.4
Provision for depreciation and amortization................................................ 64.9 32.9 32.4
Provision for deferred federal income taxes................................................ (6.4) 63.4 57.5
Net realized losses (gains) on investments................................................. 12.3 (37.5) (125.1)
Non-cash distributions from investments.................................................... 52.9 (226.7) (172.8)
Change in other assets and accounts payable and other liabilities.......................... (55.1) (69.7) 18.7
Change in future policy benefits........................................................... 75.5 58.7 62.2
Change in other policyholders' liabilities................................................. (14.8) 10.6 17.0
Change in current federal income taxes payable............................................. (12.2) (41.0) 54.7
Extraordinary loss on extinguishment of debt............................................... -- 56.8 --
--------- --------- ---------
Net cash provided by operating activities.................................................... $ 21.6 $ 10.4 $ 144.1
--------- --------- ---------
Cash flows from investing activities:
Sales, maturities or repayments of:
Fixed maturities securities................................................................ $ 1,275.7 $ 1,067.5 $ 1,256.1
Equity securities.......................................................................... 39.9 514.2 328.2
Mortgage loans on real estate.............................................................. 341.6 453.7 194.8
Policy loans, net.......................................................................... 35.7 3.6 1.4
Other invested assets...................................................................... 57.9 179.6 369.4
Acquisitions of investments:
Fixed maturities securities................................................................ (1,398.0) (1,058.9) (1,563.6)
Equity securities.......................................................................... (51.4) (127.6) (152.0)
Mortgage loans on real estate.............................................................. (405.3) (442.4) (503.4)
Other invested assets...................................................................... (127.5) (99.6) (66.2)
Other, net................................................................................. -- (150.0) 60.3
Property and equipment, net................................................................ (41.2) (54.8) (22.5)
--------- --------- ---------
Net cash (used in)/provided by investing activities.......................................... $ (272.6) $ 285.3 $ (97.5)
========= ========= =========
Cash flows from financing activities:
Issuance of debt............................................................................. $ -- $ 215.0 $ --
Repayments of debt........................................................................... (0.1) (301.3) (84.8)
Receipts from annuity and universal life policies credited to policyholders' account balances 1,150.9 2,287.1 1,874.0
Return of policyholders' account balances on annuity policies and universal life policies.... (979.3) (2,305.9) (1,896.5)
Capital contribution......................................................................... -- 65.0 --
Dividends paid to shareholders............................................................... (115.0) (100.0) --
Net cash provided by/(used in) financing activities.......................................... 56.5 (140.1) (107.3)
--------- --------- ---------
Net (decrease)/increase in cash and cash equivalents......................................... (194.5) 155.6 (60.7)
Cash and cash equivalents, beginning of year................................................. 499.5 343.9 404.6
--------- --------- ---------
Cash and cash equivalents, end of year....................................................... $ 305.0 $ 499.5 $ 343.9
========= ========= =========
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes............................................................................... $ 4.6 $ 93.3 $ 20.1
Interest................................................................................... $ 19.8 $ 29.4 $ 20.3
See accompanying notes to consolidated financial statements.
F-235
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Description of Business:
The MONY Life Insurance Company ( "MONY Life") and its subsidiaries (MONY
Life and its subsidiaries are collectively referred to herein as the
"Company"), provides life insurance, annuities, corporate-owned and bank-owned
life insurance ("COLI/BOLI") products, mutual funds, securities brokerage,
asset management, and business and estate planning services. The Company
distributes its products and services to individuals and institutional clients
through a career agency sales force and financial advisors and brokers of its
securities broker-dealer and mutual fund subsidiaries (hereafter referred to as
"Proprietary Distribution"). In addition, the Company distributes its products
and services through what it defines as complementary distribution channels
("Complementary Distribution"), which principally consist of independent
third-party insurance brokerage general agencies and securities broker-dealers,
as well as its corporate marketing team. The Company principally sells its
products in all 50 of the United States, the District of Columbia, the U.S.
Virgin Islands, Guam and the Commonwealth of Puerto Rico and currently insures
or provides other financial services to more than one million people.
MONY Life's principal wholly owned direct and indirect operating
subsidiaries include: (i) MONY Life Insurance Company of America ("MLOA"), an
Arizona domiciled life insurance company, (ii) Enterprise Capital Management
("Enterprise"), a distributor of both proprietary and non-proprietary mutual
funds, (iii) U.S. Financial Life Insurance Company ("USFL"), an Ohio domiciled
insurer underwriting specialty risk life insurance business, (iv) MONY
Securities Corporation ("MSC"), a registered securities broker-dealer and
investment advisor whose products and services are distributed through MONY
Life's career agency sales force, (v) Trusted Securities Advisors Corporation
("Trusted Advisors"), which distributes investment products and services
through a network of independent certified public accountants, (vi) MONY
Brokerage, Inc. ("MBI"), a licensed insurance broker, which principally
provides MONY Life's career agency sales force with access to life, annuity,
small group health, and specialty insurance products written by other insurance
companies so they can meet the insurance and investment needs of their clients,
and (vii) MONY Life Insurance Company of the Americas, Ltd. ("MLICA"), which
provides life insurance, annuity and investment products to nationals of
certain Latin American countries.
On November 16, 1998, pursuant to a plan of reorganization (the "Plan"),
which was approved by the New York Insurance Department, The Mutual Life
Insurance Company of New York ("MONY") converted from a mutual insurance
company to a stock life insurance company (the "Demutualization") and became
MONY Life, a wholly owned subsidiary of The MONY Group Inc. ("MONY Group"). In
connection with the Plan, MONY established a closed block, as more fully
discussed in Note 2, to fund the guaranteed benefits and dividends of certain
participating insurance policies and eligible policyholders received cash,
policy credits, or shares of MONY Group common stock in exchange for their
membership interests in MONY.
The MONY Group's other principal operating subsidiaries are The Advest
Group, Inc. ("Advest") and Matrix Capital Markets Group ("Matrix"). Advest and
Matrix were acquired by MONY Group in 2001.
2. The Closed Block:
On November 16, 1998, the Company established a closed block (the "Closed
Block") of certain participating insurance policies as defined in the Plan (the
"Closed Block Business"). In conjunction therewith, the Company allocated
assets to the Closed Block expected to produce cash flows which, together with
anticipated revenues from the Closed Block Business, are reasonably expected to
be sufficient to support the Closed Block Business, including but not limited
to, provision for payment of claims and surrender benefits, certain expenses
and taxes, and for continuation of current payable dividend scales in effect at
the date of Demutualization, assuming the experience underlying such dividend
scales continues, and for appropriate adjustments in such scales if the
experience changes. The assets allocated to the Closed Block and the
aforementioned revenues inure solely to the benefit of the owners of policies
included in the Closed Block.
The assets and liabilities allocated to the Closed Block are recorded in the
Company's financial statements at their historical carrying values. The
carrying value of the assets allocated to the Closed Block are less than the
carrying value of the Closed Block liabilities at the Plan Effective Date. The
excess of the Closed Block liabilities over the Closed Block assets at the Plan
Effective Date represents the total estimated future post-tax contribution
expected to emerge from the operation of the Closed Block, which will be
recognized in the Company's income over the period the policies and the
contracts in the Closed Block remain in force.
F-236
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
To the extent that the actual cash flows, subsequent to the Plan Effective
Date, from the assets allocated to the Closed Block and the Closed Block
Business are, in the aggregate, more favorable than assumed in establishing the
Closed Block, total dividends paid to the Closed Block policyholders in future
years will be greater than the total dividends that would have been paid to
such policyholders if the current payable dividend scales had been continued.
Conversely, to the extent that the actual cash flows, subsequent to the Plan
Effective Date, from the assets allocated to the Closed Block and the Closed
Block Business are, in the aggregate, less favorable than assumed in
establishing the Closed Block, total dividends paid to the Closed Block
policyholders in future years will be less than the total dividends that would
have been paid to such policyholders if the current payable dividend scales had
been continued. Accordingly, the recognition of the aforementioned estimated
future post-tax contribution expected to emerge from the operation of the
Closed Block is not affected by the aggregate actual experience of the Closed
Block assets and the Closed Block Business subsequent to the Plan Effective
Date, except in the event that the Closed Block assets and the actual
experience of the Closed Block Business subsequent to the Plan Effective Date
are not sufficient to pay the guaranteed benefits on the Closed Block Policies,
in which case the Company will be required to fund any such deficiency from its
general account assets outside of the Closed Block.
Since the Closed Block has been funded to provide for payment of guaranteed
benefits and the continuation of current payable dividends on the policies
included therein, it will not be necessary to use general funds to pay
guaranteed benefits unless the Closed Block Business experiences very
substantial ongoing adverse experience in investment, mortality, persistency or
other experience factors. The Company regularly (at least quarterly) monitors
the experience from the Closed Block and may make changes to the dividend
scale, when appropriate, to ensure that the profits are distributed to the
Closed Block policyholders in a fair and equitable manner. In addition,
periodically the New York Insurance Department requires the filing of an
independent auditor's report on the operations of the Closed Block.
3. Summary of Significant Accounting Policies:
Basis of Presentation
The accompanying consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the United States
of America ("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, (iii) valuation allowances for
mortgage loans, and impairment writedowns for other invested assets, and (iv)
litigation, contingencies and restructuring charges. Certain reclassifications
have been made in the amounts presented for prior periods to conform those
periods to the current presentation.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of
the Company and those partnerships in which the Company has a majority voting
interest. All significant intercompany accounts and transactions have been
eliminated.
Valuation of Investments and Realized Gains and Losses
The Company's fixed maturity securities are classified as available-for-sale
and are reported at estimated fair value. The Company's equity securities are
comprised of investments in common stocks and limited partnership interests.
The Company's investments in common stocks are classified as available-for-sale
and are reported at estimated fair value. The Company's investments in limited
partnership interests are accounted for in accordance with the equity method of
accounting or the cost method of accounting depending upon the Company's
percentage of ownership of the partnership and the date it was acquired. In
general, partnership interests acquired after May 18, 1995 are accounted for in
accordance with the equity method of accounting if
F-237
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
the Company's ownership interest exceeds 3 percent, whereas, if the partnership
was acquired prior to May 18, 1995, the equity method would be applied only if
the Company's ownership interest exceeded 20 percent. In all other
circumstances the Company accounts for its investments in limited partnership
interests in accordance with the cost method. Unrealized gains and losses on
fixed maturity securities and common stocks 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 all fixed
maturity securities and common stock 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, are
reported as other invested assets, and are 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.
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 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.
Collateralized Financing Transactions
Securities loaned and borrowed are accounted for as collateralized financing
transactions and are recorded at the amount of cash collateral received or
advanced. The fee received or paid by the Company is recorded as interest
revenue or expense and is reflected in retail brokerage and investment banking
revenues and other operating costs and expenses, respectively, in the
consolidated statement of income. The initial collateral advanced or received
has a higher market value than the underlying securities. The Company monitors
the market value of securities borrowed and loaned on a daily basis, with
additional collateral obtained or refunded, as necessary.
The Company utilizes short-term repurchase agreements as supplementary
short-term financing and delivers U.S. Treasury securities as collateral for
cash received. These repurchase agreements are accounted for as collateralized
financings. The fee paid by the Company is recorded as interest expense. The
Company monitors the market value of securities transferred on a daily basis,
and obtains additional collateral as necessary.
Recognition of Insurance Revenue and Related Benefits
Premiums from participating and non-participating traditional life, health
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
F-238
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
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.
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 participating traditional life policies, DAC is amortized over the
expected life of the contracts (30 years) as a constant percentage based on the
present value of estimated gross margins expected to be realized over the life
of the contracts using the expected investment yield. At December 31, 2001, the
expected investment yield for the Closed Block was 7.29% for the year 2001 with
subsequent years grading down to an ultimate aggregate yield of 7.12% in the
year 2013. Estimated gross margins include anticipated premiums and investment
results less claims and administrative expenses, changes in the net level
premium reserve and expected annual policyholder dividends.
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. 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. The discount rate for all products is 8%.
Estimated gross profits arise principally from investment results, mortality
and expense margins and surrender charges.
The Company conducts programs from time-to-time that allow annuity
contractholders to exchange older annuity contracts for new annuity products at
no cost. The Company has determined that the old and new products are
substantially similar and as such, the Company retains previously recorded DAC
related to the exchanged contract.
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.
Future Policy Benefits and Policyholders' Account Balances
Future policy benefit liabilities for participating traditional life
policies are calculated using a net level premium method on the basis of
actuarial assumptions equal to guaranteed mortality and dividend fund interest
rates. The liability for annual dividends represents the accrual of annual
dividends earned. Dividend fund interest assumptions range from 2.0 percent to
5.5 percent.
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%, 5.9% and 5.6% for the years ended December 31, 2001, 2000, and 1999,
respectively. The weighted average interest crediting rate for investment-type
products was approximately 4.5%, 4.9% and 5.1% for the years ended December 31,
2001, 2000, and 1999, respectively.
F-239
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Dividends to Policyholders
Dividends to policyholders, which are substantially all on the Closed Block
Business (see Note 2) are determined annually by the Board of Directors of MONY
Life. The aggregate amount of policyholders' dividends is related to actual
interest, mortality and morbidity for the year.
Participating Business
At December 31, 2001 and 2000, participating business, substantially all of
which is in the Closed Block, represented approximately 46.0% and 53.3% of the
Company's life insurance in force, and 73.7% and 74.4% of the number of life
insurance policies in force, respectively. For each of the years ended December
31, 2001, 2000 and 1999, participating business represented approximately 83.5%
and 91.6%, and 95.9%, respectively, of life insurance premiums.
Federal Income Taxes
The Company files a consolidated federal income tax return with its parent,
The MONY Group Inc. and its other subsidiaries, as well as the Company's life
and non-life affiliates except Sagamore Financial Corporation and its
subsidiaries. Deferred income tax assets and liabilities are recognized based
on the difference between financial statement amounts and income tax bases of
assets and liabilities using enacted income taxes and laws.
Reinsurance
The Company has reinsured certain of its life insurance and investment
contracts 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, Statement of Financial Accounting Standards ("SFAS") No. 113
"Accounting and reporting for reinsurance of short-duration and long-duration
contracts" requires that there be a "reasonable possibility" that the reinsurer
may realize a "significant loss" from assuming insurance risk under the
contract. In making this assessment, the Company projects the results of the
policies reinsured under the contract under various scenarios and assesses the
probability of such results actually occurring. The projected results represent
the present value of all the cash flows under the reinsurance contract. The
Company generally defines a "reasonable possibility" as having a probability of
at least 10%. In assessing whether the projected results of the reinsured
business constitute a "significant loss", the Company considers: (i) the ratio
of the aggregate projected loss, discounted at an appropriate rate of interest
(the "aggregate projected loss"), to an estimate of the reinsurer's investment
in the contract, as hereafter defined, and (ii) the ratio of the aggregate
projected loss to an estimate of the total premiums to be received by the
reinsurer under the contract discounted at an appropriate rate of interest.
The reinsurer's investment in a reinsurance contract consists of amounts
paid to the ceding company at the inception of the contract (e.g. expense
allowances and the excess of liabilities assumed by the reinsurer over the
assets transferred to the reinsurer under the contract) plus the amount of
capital required to support such business consistent with prudent business
practices, regulatory requirements, and the reinsurer's credit rating. The
Company estimates the capital required to support such business based on what
it considers to be an appropriate level of risk-based capital in light of
regulatory requirements and prudent business practices.
Separate Accounts
Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of
the Company. Separate account assets are subject to general account claims only
to the extent that the value of such assets exceeds the separate account
liabilities. Investments held in separate accounts and liabilities of the
separate
F-240
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
accounts are reported separately as assets and liabilities. Substantially all
separate account assets are reported at estimated fair value. Investment income
and gains or losses on the investments of separate accounts accrue directly to
contractholders and, accordingly, are not reflected in the Company's
consolidated 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.
Consolidated Statements of Cash Flows--Non-cash Transactions
For the years ended December 31, 2001, 2000, and 1999, respectively, real
estate of $18.0 million, $0.5 million, and $27.0 million was acquired in
satisfaction of debt. At December 31, 2001 and 2000, the Company owned real
estate acquired in satisfaction of debt of $44.3 million and $41.5 million,
respectively. Other non-cash transactions, which are reflected in the statement
of cash flows as a reconciling item from net income to net cash provided by
operating activities, consisted primarily of stock distributions from the
Company's partnership investments and payment-in-kind for interest due on
certain fixed maturity securities.
New Accounting Pronouncements
On January 1, 2001 the Company adopted FASB SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" ("SFAS 133"). 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. The Company's use of
derivative instruments is not significant and accordingly, adoption of the
standard did not have a material effect on the Company's earnings or financial
position.
On January 1, 2001, the Company adopted the provisions of American Institute
of Certified Public Accountants Statement of Position 00-3, "Accounting by
Insurance Enterprises for Demutualizations and Formations of Mutual Insurance
Holding Companies for Certain Long-Duration Participating Contracts" ("SOP
00-3"). SOP 00-3 requires, among other things, that Closed Block assets,
liabilities, revenues, and expenses should be displayed in financial statements
combined with all other assets, liabilities, revenues, and expenses outside the
Closed Block. The guidance in SOP 00-3 requires restatement of financial
statements presented for years prior to its issuance. Accordingly, the
consolidated balance sheet of the Company as of December 31, 2000 and the
related consolidated statements of income and comprehensive income for the
years ended December 31, 2000 and 1999 have been restated to conform to the
presentation required by SOP 00-3.
On January 1, 2001 the Company adopted FASB SFAS No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,
a replacement of SFAS No. 125" ("SFAS No. 140"). SFAS No. 140 specifies the
accounting and reporting requirements for securitizations and other transfers
of financial assets and collateral, recognition and measurement of servicing
assets and liabilities, and the extinguishment of liabilities. Adoption of the
new requirements did not have a material effect on the Company's earnings or
financial position.
In July 2001, the FASB issued SFAS No. 141, "Business Combinations" ("SFAS
141"). SFAS 141 addresses the financial accounting and reporting for all
business combinations. This statement requires that all business combinations
be accounted for under the purchase method of accounting, abolishes the use of
the pooling-of-interest method, requires separate recognition of intangible
assets that can be identified and named, and expands required disclosures. All
of the Company's past business combinations have been accounted for under the
purchase accounting method. The provisions of this statement apply to all
business combinations initiated after June 30, 2001. This statement has no
material effect on the financial position or earnings of the Company.
In June 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible
Assets" ("SFAS 142"). SFAS 142 provides that goodwill and intangible assets
that have indefinite useful lives will not be amortized but rather will be
tested at least annually
F-241
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
for impairment. This Statement provides specific guidance for testing the
impairment of goodwill and intangible assets. This statement is effective for
fiscal years beginning after December 15, 2001. As a result of adopting this
statement, the Company will no longer recognize goodwill amortization of
approximately $1.4 million on an annualized basis. In addition, the Company
does not expect to recognize any impairment of goodwill upon adoption of this
statement.
In October 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" ("SFAS 144"). This statement
establishes a single accounting model for the impairment or disposal of
long-lived assets, including assets to be held and used, assets to be disposed
of by other than sale, and assets to be disposed of by sale. The provisions of
SFAS 144 are effective for financial statements issued for fiscal years
beginning after December 15, 2001. SFAS 144 retains many of the same provisions
of SFAS 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of" ("SFAS 121"). In addition to retaining the
SFAS 121 requirements, SFAS 144 requires companies to present the results of
operations of components of the entity that are held for sale as discontinued
operations in the consolidated statements of income and comprehensive income.
The Company has real estate held for sale, included in "Other assets", that
meet the definition of a component of the entity. Accordingly, beginning
January 1, 2002, the Company will report results from operations for real
estate held for sale as discontinued operations. Pre-tax income from real
estate held for sale recorded for the years ended December 31, 2001 and 2000
was approximately $6.8 million and $17.4 million, respectively.
4. Investment Income, Realized and Unrealized Investment Gains (Losses), and
Comprehensive Income:
Net investment income for the years ended December 31, 2001, 2000 and 1999
was derived from the following sources:
2001 2000 1999
------ -------- ------
($ in millions)
Net Investment Income
Fixed maturities................................. $484.4 $ 495.4 $477.7
Equity securities................................ (33.9) 239.4 194.2
Mortgage loans................................... 139.8 144.3 127.7
Other investments (including cash and short-term) 132.7 136.9 135.9
------ -------- ------
Total investment income.......................... 723.0 1,016.0 935.5
Investment expenses.............................. 46.1 45.1 35.5
------ -------- ------
Net investment income............................ $676.9 $ 970.9 $900.0
====== ======== ======
Net realized gains (losses) on investments for the years ended December 31,
2001, 2000 and 1999 are summarized as follows:
2001 2000 1999
------ ------ ------
($ in millions)
Net Realized Gains (Losses) on Investments
Fixed maturities............................. $ (2.6) $(30.1) $ (8.6)
Equity securities............................ (7.8) 21.5 76.0
Mortgage loans............................... 9.3 19.8 0.8
Other invested assets........................ (11.2) 26.3 56.9
------ ------ ------
Net realized gains (losses) on investments... $(12.3) $ 37.5 $125.1
====== ====== ======
Following is a summary of the change in unrealized investment gains
(losses), net of related deferred income taxes and adjustment for deferred
policy acquisition costs (see Note 8), which are reflected in Accumulated Other
Comprehensive Income for the periods presented. The net change in unrealized
investment gains (losses) and the change in the Company's minimum pension
F-242
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
liability represent the only components of other comprehensive income for the
years ended December 31, 2001, 2000 and 1999 as presented below:
2001 2000 1999
------ ------ -------
- - ($ in millions)
Other Comprehensive Income
Change in unrealized gains (losses):
Fixed maturities..................................................... $156.7 $196.7 $(458.9)
Equity securities.................................................... (3.4) (59.9) (25.3)
Other................................................................ 0.0 0.0 (3.6)
------ ------ -------
Subtotal............................................................. 153.3 136.8 (487.8)
AEGON Portfolio (See Note 11)........................................ 31.0 20.6 (77.9)
------ ------ -------
Subtotal............................................................. 184.3 157.4 (565.7)
Effect on unrealized gains (losses) on investments attributable to:
DAC................................................................. (30.3) (93.1) 241.6
Deferred federal income taxes....................................... (48.2) (20.6) 114.1
Net unrealized gains (losses) and DAC transferred to the Closed Block (69.2) 2.5 28.2
------ ------ -------
Change in unrealized gains (losses) on investments, net.............. 36.6 46.2 (181.8)
Minimum pension liability adjustment................................. (11.5) (3.8) --
------ ------ -------
Other comprehensive income........................................... $ 25.1 $ 42.4 $(181.8)
====== ====== =======
The following table sets forth the reclassification adjustments required for
the years ended December 31, 2001, 2000, and 1999 to avoid double-counting in
comprehensive income items that are included as part of net income for a period
that also had been part of other comprehensive income in earlier periods:
2001 2001 1999
----- ----- -------
($ in millions)
Reclassification Adjustments
Unrealized gains (losses) on investments.............................. $34.6 $48.6 $(135.3)
Reclassification adjustment for gains included in net income.......... (9.5) (6.2) (46.5)
----- ----- -------
Unrealized gains (losses) on investments, net of
reclassification adjustments........................................ $25.1 $42.4 $(181.8)
===== ===== =======
Unrealized gains (losses) on investments, (excluding net unrealized gains
(losses) and DAC on assets allocated to the Closed Block), reported in the
above table for the years ended December 31, 2001, 2000 and 1999 are net of
income tax expense (benefit) of $43.2 million, $17.2 million, and $(139.2)
million, respectively, and $(32.1) million, $(95.5) million, and $242.2
million, respectively, relating to the effect of such unrealized gains (losses)
on DAC.
Reclassification adjustments, (excluding net unrealized gains (losses) and
DAC on assets allocated to the Closed Block), reported in the above table for
the years ended December 31, 2001, 2000 and 1999 are net of income tax expense
of $5.1 million, $3.3 million and $25.1 million, respectively, and $1.8
million, $2.5 million and $(0.4) million, respectively, relating to the effect
of such amounts on DAC.
F-243
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Fixed Maturity and Equity Securities:
Fixed Maturity Securities Available-for-Sale
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 2001
and 2000 are as follows:
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
----------------- ------------- ------------ -----------------
2001 2000 2001 2000 2001 2000 2001 2000
-------- -------- ------ ------ ----- ------ -------- --------
($ in millions)
US Treasury securities and Obligations of US Government agencies $ 292.7 $ 171.6 $ 14.7 $ 6.7 $ 0.2 $ 0.3 $ 307.2 $ 178.1
Collateralized mortgage obligations:
Government agency-backed...................................... 268.4 310.9 5.8 2.5 0.8 1.6 273.4 311.8
Non-agency backed............................................. 166.3 136.7 7.0 3.3 0.0 0.3 173.3 139.7
Other asset-backed securities:
Government agency-backed...................................... 18.4 25.8 0.7 0.5 0.0 0.2 19.1 26.1
Non-agency backed............................................. 611.5 505.9 17.9 7.0 9.6 8.2 619.8 504.7
Foreign governments............................................. 32.1 28.4 4.0 1.5 0.7 0.5 35.4 29.4
Utilities....................................................... 551.3 635.2 16.9 13.4 4.6 11.1 563.6 637.5
Corporate bonds................................................. 4,830.3 4,860.8 153.0 82.6 58.3 103.5 4,925.0 4,839.9
-------- -------- ------ ------ ----- ------ -------- --------
Total bonds............................................... 6,771.0 6,675.3 220.0 117.5 74.2 125.7 6,916.8 6,667.2
Redeemable preferred stocks..................................... 55.6 27.4 1.2 0.0 0.1 1.6 56.7 25.8
-------- -------- ------ ------ ----- ------ -------- --------
Total..................................................... $6,826.6 $6,702.7 $221.2 $117.5 $74.3 $127.3 $6,973.5 $6,693.0
======== ======== ====== ====== ===== ====== ======== ========
The carrying value of the Company's fixed maturity securities
available-for-sale at December 31, 2001 and 2000 is net of adjustments for
impairments in value deemed to be other than temporary of $48.2 million and
$27.5 million, respectively.
At December 31, 2001 and 2000, there was $0.0 million and $1.6 million,
respectively, of fixed maturity securities which had been non-income producing
for the twelve months preceding such dates.
The Company classifies fixed maturity securities available-for-sale which
(i) are in default as to principal or interest payments, (ii) are to be
restructured pursuant to commenced negotiations, (iii) went into bankruptcy
subsequent to acquisition, or (iv) are deemed to have other than temporary
impairments to value as "problem fixed maturity securities." At December 31,
2001 and 2000, the carrying value of problem fixed maturities held by the
Company was $66.7 million and $54.1 million, respectively. The Company defines
potential problem securities in the fixed maturity category as securities that
are deemed to be experiencing significant operating problems or difficult
industry conditions. At December 31, 2001 and 2000, the carrying value of
potential problem fixed maturities held by the Company was $16.1 million and
$6.6 million, respectively. In addition, at December 31, 2001 and 2000, the
Company had no fixed maturity securities which had been restructured.
F-244
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The amortized cost and estimated fair value of fixed maturity securities
available-for-sale, by contractual maturity dates (excluding scheduled sinking
funds) as of December 31, 2001, are as follows:
2001
--------------------
Amortized Estimated
Cost Fair Value
--------- ----------
($ in millions)
Due in one year or less..................................... $ 346.1 $ 354.9
Due after one year through five years....................... 1,996.7 2,071.1
Due after five years through ten years...................... 2,480.2 2,527.4
Due after ten years......................................... 939.0 934.6
-------- --------
Subtotal................................................. 5,762.0 5,888.0
Mortgage--and asset-backed securities....................... 1,064.6 1,085.5
-------- --------
Total.................................................... $6,826.6 $6,973.5
======== ========
Fixed maturity securities available-for-sale 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 available-for-sale during
2001, 2000 and 1999 were $479.4 million, $441.3 million and $632.8 million,
respectively. Gross gains of $21.3 million, $7.2 million, and $6.9 million and
gross losses of $8.3 million, $16.3 million, and $19.4 million were realized on
these sales, in 2001, 2000 and 1999, respectively.
Equity Securities
The cost, gross unrealized gains and losses, and estimated fair value of
marketable and non-marketable equity securities at December 31, 2001 and 2000
are as follows:
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
------------- ----------- ---------- -------------
2001 2000 2001 2000 2001 2000 2001 2000
------ ------ ----- ----- ----- ---- ------ ------
($ in millions)
Marketable equity securities.. $ 67.3 $ 40.1 $ 6.2 $ 6.7 $ 6.9 $2.2 $ 66.6 $ 44.6
Nonmarketable equity
securities................... 220.7 226.2 31.0 63.6 20.8 5.8 230.9 284.0
------ ------ ----- ----- ----- ---- ------ ------
$288.0 $266.3 $37.2 $70.3 $27.7 $8.0 $297.5 328.6
====== ====== ===== ===== ===== ==== ====== ======
Proceeds from sales of equity securities during 2001, 2000 and 1999 were
$31.0 million, $499.2 million and $302.7 million, respectively. Gross gains of
$3.1 million, $81.2 million and $90.0 million and gross losses of $9.5 million,
$57.8 million and $12.4 million were realized on these sales, during 2001,
2000, and 1999, respectively.
F-245
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
6. Mortgage Loans on Real Estate:
Mortgage loans on real estate at December 31, 2001 and 2000 consist of the
following:
2001 2000
-------- --------
($ in millions)
Commercial and residential mortgage loans.. $1,533.6 $1,473.4
Agricultural mortgage loans................ 304.6 313.5
-------- --------
Total loans................................ 1,838.2 1,786.9
Less: valuation allowances................. (28.5) (32.2)
-------- --------
Mortgage loans, net of valuation allowances $1,809.7 $1,754.7
======== ========
An analysis of the valuation allowances for 2001, 2000 and 1999 is as
follows:
2001 2000 1999
----- ----- ------
($ in millions)
Balance, beginning of year............. $32.2 $37.3 $ 46.8
(Decrease)/increase in allowance....... (0.8) (4.9) 3.7
Reduction due to pay downs and pay offs (0.2) (0.2) (1.3)
Transfers to real estate............... (2.7) -- (11.9)
----- ----- ------
Balance, end of year................... $28.5 $32.2 $ 37.3
===== ===== ======
Impaired mortgage loans along with related valuation allowances as of
December 31, 2001 and 2000 are as follows:
2001 2000
------ ------
($ in millions)
Investment in impaired mortgage loans (before valuation allowances):
Loans that have valuation allowances................................ $ 93.5 $132.9
Loans that do not have valuation allowances......................... 85.2 65.1
------ ------
Subtotal......................................................... 178.7 198.0
Valuation allowances................................................ (18.4) (22.6)
------ ------
Impaired mortgage loans, net of valuation allowances............. $160.3 $175.4
====== ======
During 2001, 2000, and 1999, the Company recognized $12.8 million, $19.5
million, and $19.8 million, respectively, of interest income on impaired loans
(also see Note 18).
At December 31, 2001 and 2000, the carrying value of mortgage loans which
were non-income producing for the twelve months preceding such dates was $22.0
million and $13.3 million, respectively.
At December 31, 2001 and 2000, the Company had restructured mortgage loans
of $66.3 million and $85.7 million, respectively. Interest income of $4.3
million, $6.8 million and $10.6 million was recognized on restructured mortgage
loans in 2001, 2000, and 1999, respectively. Gross interest income on these
loans that would have been recorded in accordance with the original terms of
such loans amounted to approximately $7.2 million, $9.5 million, and $15.7
million in 2001, 2000 and 1999, respectively.
7. Segment Information:
The Company's business activities consist of the following: protection
product operations, accumulation product operations, mutual fund operations,
securities broker-dealer operations, insurance brokerage operations, and
certain insurance lines of business no longer written by the Company (the
"run-off businesses"). These business activities represent the Company's
operating
F-246
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
segments. Except as discussed below, these segments are managed separately
because they either provide different products or services, are subject to
different regulation, require different strategies, or have different
technology requirements.
Management considers the Company's mutual fund operations to be an integral
part of the products offered by the Company's accumulation products segment,
since a significant portion of mutual funds sold by the Company are offered
through, and in conjunction with, the products marketed by the accumulation
products segment. Accordingly, for management purposes (including, performance
assessment and making decisions regarding the allocation of resources), the
Company aggregates its mutual fund operations with its accumulation products
segment.
Of the aforementioned segments, only the protection products segment and the
accumulation products segment qualify as reportable segments in accordance with
SFAS 131. All of the Company's other segments are combined and reported in the
other products segment.
Products comprising the protection products segment primarily include a wide
range of insurance products, including: whole life, term life, universal life,
variable universal life, corporate-owned life insurance, last survivor variable
universal life, last survivor universal life, group universal life and
special-risk products. In addition, included in the protection products segment
are: (i) the assets and liabilities transferred pursuant to the Group Pension
Transaction, as well as the Group Pension Profits (see Note 11), (ii) the
Closed Block assets and liabilities, as well as the Contribution from the
Closed Block (See Notes 2 and 18), and (iii) the Company's disability income
insurance business. Products comprising the accumulation products segment
primarily include flexible premium variable annuities, single premium deferred
annuities, immediate annuities, proprietary mutual funds, investment management
services, and certain other financial services products. The Company's other
products segment primarily consists of the securities broker-dealer operation,
the insurance brokerage operation, and the run-off businesses. The securities
broker-dealer operation markets the Company's proprietary investment products
and, in addition, provides clients of the Company's protection and accumulation
products access to other non-proprietary investment products (including stocks,
bonds, limited partnership interests, tax-exempt unit investment trusts and
other investment securities). The insurance brokerage operation provides the
Company's field agency force with access to life, annuity, small group health
and specialty insurance products written by other carriers to meet the
insurance and investment needs of its clients. The run-off businesses primarily
consist of group life and health business, as well as group pension business
that was not included in the Group Pension Transaction.
Set forth in the table below is certain financial information with respect
to the Company's operating segments as of and for each of the years ended
December 31, 2001, 2000, and 1999, as well as amounts not allocated to the
segments. Except for various allocations discussed below, the accounting
policies of the segments are the same as those described in the summary of
significant accounting policies. The Company evaluates the performance of each
operating segment based on profit or loss from operations before income taxes
and nonrecurring items (e.g. items of an unusual or infrequent nature). The
Company does not allocate certain non-recurring items to the segments. In
addition, substantially all segment revenues are from external sources.
Assets have been allocated to the segments in amounts sufficient to support
the associated liabilities of each segment. In addition, capital is allocated
to each segment in amounts sufficient to maintain a targeted regulatory
risk-based capital ("RBC") level for each segment. Allocations of net
investment income and net realized gains on investments were based on the
amount of assets allocated to each segment. Other costs and operating expenses
were allocated to each of the segments based on: (i) a review of the nature of
such costs, (ii) time studies analyzing the amount of employee compensation
costs incurred by each segment, and (iii) cost estimates included in the
Company's product pricing. Substantially all non-cash transactions and impaired
real estate (including real estate acquired in satisfaction of debt) have been
allocated to the Protection Products segment (see Note 3).
F-247
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Segment Summary Financial Information
2001(3)(5) 2000(6) 1999(7)
---------- -------- --------
($ in millions)
Premiums:
Protection Products.................................................. $675.5 $ 685.7 $ 702.8
Accumulation Products................................................ 5.3 1.3 0.9
Other Products....................................................... 14.5 13.5 13.4
------ -------- --------
$695.3 $ 700.5 $ 717.1
====== ======== ========
Universal life and investment-type product policy fees:
Protection Products.................................................. $151.6 $ 134.8 $ 122.3
Accumulation Products................................................ 54.7 70.0 73.3
Other Products....................................................... 0.9 1.0 0.7
------ -------- --------
$207.2 $ 205.8 $ 196.3
====== ======== ========
Net investment income and net realized gains (losses) on investments:
Protection Products.................................................. $559.4 $ 796.7 $ 823.1
Accumulation Products................................................ 68.6 124.9 132.4
Other Products....................................................... 17.9 68.9 69.6
Reconciling amounts(4)............................................... 18.7 17.9 0.0
------ -------- --------
$664.6 $1,008.4 $1,025.1
====== ======== ========
Other income:
Protection Products.................................................. $ 46.8 $ 57.7 $ 79.6
Accumulation Products................................................ 107.4 120.2 95.1
Other Products....................................................... 57.5 77.4 80.7
Reconciling amounts.................................................. 8.1 5.1 4.8
------ -------- --------
$219.8 $ 260.4 $ 260.2
====== ======== ========
Amortization of deferred policy acquisition costs:
Protection Products.................................................. $115.7 $ 110.8 $ 107.1
Accumulation Products................................................ 26.1 28.3 30.7
Reconciling amounts.................................................. 17.0 0.0 0.0
------ -------- --------
$158.8 $ 139.1 $ 137.8
====== ======== ========
Benefits to policyholders:(1)
Protection Products.................................................. $815.1 $ 791.1 $ 790.7
Accumulation Products................................................ 75.4 68.2 73.7
Other Products....................................................... 29.2 31.5 33.7
Reconciling amounts.................................................. 5.5 7.6 4.5
------ -------- --------
$925.2 $ 898.4 $ 902.6
====== ======== ========
Other operating costs and expenses:
Protection Products.................................................. $245.5 $ 262.2 $ 287.5
Accumulation Products................................................ 127.2 120.0 105.7
Other Products....................................................... 138.9 100.3 93.7
Reconciling amounts.................................................. 7.8 20.8 61.8
------ -------- --------
$519.4 $ 503.3 $ 548.7
====== ======== ========
Income before income taxes:
Protection Products.................................................. $ 23.1 $ 278.1 $ 315.0
Accumulation Products................................................ 5.7 98.4 89.6
Other Products....................................................... (78.4) 27.7 35.8
Reconciling amounts.................................................. (3.5) (5.4) (61.5)
------ -------- --------
$(53.1) $ 398.8 $ 378.9
====== ======== ========
F-248
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2001(3)(5) 2000(6) 1999(7)
---------- --------- ---------
($ in millions)
Assets:
Protection Products............... $16,188.1 $16,239.0 $16,181.4
Accumulation Products............. 5,077.7 5,593.5 6,175.0
Other Products.................... 1,125.7 1,060.8 1,187.6
Reconciling amounts............... 994.8 1,309.0 1,176.1
--------- --------- ---------
$23,386.3 $24,202.3 $24,720.1
========= ========= =========
Deferred policy acquisition costs:
Protection Products............... $ 1,087.0 $ 1,064.3 $ 1,094.9
Accumulation Products............. 146.8 145.4 153.3
--------- --------- ---------
$ 1,233.8 $ 1,209.7 $ 1,248.2
========= ========= =========
Policyholders' liabilities:
Protection Products............... $10,366.5 $10,290.7 $10,231.7
Accumulation Products............. 1,142.5 1,060.0 1,236.3
Other Products.................... 361.7 381.4 418.9
Reconciling amounts............... 16.3 17.7 17.4
--------- --------- ---------
$11,887.0 $11,749.8 $11,904.3
========= ========= =========
Separate account liabilities:(2)
Protection Products............... $ 3,783.7 $ 3,939.5 $ 3,843.5
Accumulation Products............. 3,464.3 4,072.9 4,548.9
Other Products.................... 429.7 499.5 604.2
Reconciling amounts............... 694.1 770.1 832.3
--------- --------- ---------
$ 8,371.8 $ 9,282.0 $ 9,828.9
========= ========= =========
- ----------
(1) Includes interest credited to policyholders' account balances.
(2) Each segment includes separate account assets in an amount not less than
the corresponding liability reported.
(3) See Note 19 for details regarding the allocation of Reorganization and
Other Charges to segments.
(4) Reconciling amounts include interest expense related to the Inter-company
Surplus Notes (see Note 14).
(5) Amounts reported as "reconciling" in 2001 primarily relate to: (i)
contracts issued by MONY Life relating to its employee benefit plans, and
(ii) charges totaling $56.8 million pretax relating to the Company's
reorganization.
(6) Amounts reported as "reconciling" in 2000 primarily relate to contracts
issued by MONY Life relating to its employee benefit plans.
(7) Amounts reported as "reconciling" in 1999 primarily relate to: (i)
contracts issued by MONY Life relating to its employee benefit plans, (ii)
charges totaling $59.7 million pretax relating to the Company's voluntary
early retirement program, and (iii) demutualization expenses in 1999.
Substantially all of the Company's revenues are derived in the United
States. Revenue derived from outside the United States is not material and
revenue derived from any single client does not exceed 10 percent of total
consolidated revenues.
F-249
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Following is a summary of revenues by product for the years ended December
31, 2001, 2000 and 1999:
2001 2000 1999
------ ------ ------
($ in millions)
Premiums:
Individual life............ $675.1 $685.2 $702.7
Disability income insurance 0.4 0.5 0.6
Group insurance............ 14.5 13.5 13.4
Other...................... 5.3 1.3 0.4
------ ------ ------
Total................... $695.3 $700.5 $717.1
====== ====== ======
2001 2000 1999
------ ------ ------
($ in millions)
Universal life and investment-type product policy fees:
Universal life......................................... $ 68.8 $ 69.0 $ 73.2
Variable universal life................................ 73.4 54.7 37.6
Group universal life................................... 9.4 11.1 11.5
Individual variable annuities.......................... 54.7 69.7 72.8
Individual fixed annuities............................. 0.9 1.3 1.2
------ ------ ------
Total............................................... $207.2 $205.8 $196.3
====== ====== ======
8. Deferred Policy Acquisition Costs:
Policy acquisition costs deferred and amortized in 2001, 2000, and 1999 are
as follows:
2001 2000 1999
-------- -------- --------
($ in millions)
Balance, beginning of the year.............. $1,209.7 $1,248.2 $ 994.3
Costs deferred during the year.............. 209.1 190.8 154.3
Amortized to expense during the year........ (158.8) (139.0) (137.8)
Effect on DAC from unrealized (gains) losses (26.2) (90.3) 237.4
-------- -------- --------
Balance, end of the year.................... $1,233.8 $1,209.7 $1,248.2
======== ======== ========
9. Pension Plans and Other Postretirement Benefits:
Pension Plans
The Company has a qualified pension plan covering substantially all of its
salaried employees. The provisions of the plan provide both (a) defined benefit
accruals based on (i) years of service, (ii) the employee's final average
annual compensation and (iii) wage bases or benefits under Social Security and
(b) defined contribution accruals based on a Company matching contribution
equal to 100% of the employee's elective deferrals under the incentive savings
plan for employees up to 3% of the employee's eligible compensation and an
additional 2% of eligible compensation for each active participant. Effective
June 15, 1999, prospective defined contribution accruals in the defined benefit
plan ceased and were redirected to the Investment Plan Supplement for
Employees. The Company did not make any contribution in the current year or
prior year under Section 404 of the Internal Revenue Code ("IRC") because the
plan was fully funded under Section 412 of the IRC.
During 2000, the Company amended its Qualified Pension plan, which increased
certain benefit liabilities payable thereunder. The amendment resulted in an
increase of $1.8 million in the plan's projected benefit obligation.
F-250
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The assets of the qualified pension plan are primarily invested in MONY
Pooled Accounts which include common stock, real estate, private placement debt
securities and bonds. At December 31, 2001 and 2000, $415.3 million and $466.4
million, respectively, were invested in the MONY Pooled Accounts. Benefits of
$27.9 million, $33.9 million and $40.4 million were paid by this plan for the
years ended December 31, 2001, 2000, and 1999, respectively.
The Company also sponsors a non-qualified employee excess pension plan,
which provides both defined benefits and defined contribution accruals in
excess of Internal Revenue Service limits to certain employees. The benefits
are based on years of service and the employee's final average annual
compensation. Pension benefits are paid from the Company's general account.
Postretirement Benefits
The Company provides certain health care and life insurance benefits for
retired employees and field underwriters. The Company amortizes its
postretirement transition obligation over a period of twenty years.
Assumed health care cost trend rates typically have a significant effect on
the amounts reported for health care plans, however, under the Company's
postretirement healthcare plan, there is a per capita limit on the Company's
healthcare costs. As a result, a one-percentage point change in the assumed
healthcare cost trend rates would have an immaterial affect on amounts reported.
The following presents the change in the benefit obligation, change in plan
assets and other information with respect to the Company's qualified and
non-qualified defined benefit pension plans and other benefits which represents
the Company's postretirement benefit obligation:
Pension Benefits Other Benefits
-------------- ----------------
2001 2000 2001 2000
------ ------ ------- -------
($ in millions)
Change in benefit obligation:
Benefit obligation at beginning of year....... $386.1 $373.3 $ 103.9 $ 97.7
Service cost.................................. 8.3 6.1 1.5 1.2
Interest cost................................. 30.9 29.4 7.2 7.3
Curtailment gain.............................. -- (2.0) -- --
Termination benefits.......................... -- -- -- --
Plan amendment................................ 1.8 -- -- --
Actuarial loss................................ 25.8 18.9 0.5 5.8
Benefits paid................................. (41.4) (39.6) (8.4) (8.1)
------ ------ ------- -------
Benefit obligation at end of year............. $411.5 $386.1 $ 104.7 $ 103.9
====== ====== ======= =======
Change in plan assets:
Fair value of plan assets at beginning of year $469.9 $498.0 $ -- $ --
Actual return on plan assets.................. (20.5) 9.1 -- --
Employer contribution......................... 13.5 8.6 8.4 8.1
Benefits and expenses paid.................... (43.4) (45.8) (8.4) (8.1)
Fair value of plan assets at end of year...... 419.5 469.9 -- --
Funded status................................. 8.0 83.8 (103.7) (103.9)
Unrecognized actuarial loss................... 98.4 5.8 12.1 12.6
Unamortized transition obligation............. 2.1 (5.5) 33.6 36.7
Unrecognized prior service cost............... (11.4) (14.0) (0.8) (0.9)
------ ------ ------- -------
Net amount recognized......................... $ 97.1 $ 70.1 $ (58.8) $ (55.5)
====== ====== ======= =======
F-251
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits Other Benefits
-------------- --------------
2001 2000 2001 2000
------ ------ ------ ------
($ in millions)
Amounts recognized in the statement of financial position consist of the following:
Prepaid benefit cost............................................................... $145.4 $123.0 $ -- $ --
Accrued benefit liability.......................................................... (48.3) (52.9) (58.8) (55.5)
Intangible asset................................................................... 2.1 2.4 -- --
Accumulated other comprehensive income............................................. (2.1) (2.4) -- --
------ ------ ------ ------
Net amount recognized.............................................................. $ 97.1 $ 70.1 $(58.8) $(55.5)
====== ====== ====== ======
The Company's qualified plan had assets of $419.5 million and $469.9 million
at December 31, 2001 and 2000, respectively. The projected benefit obligation
and accumulated benefit obligation for the qualified plan were $343.5 million
and $310.6 million at December 31, 2001 and $318.3 million and $292.2 million
at December 31, 2000, respectively.
The projected benefit obligation and accumulated benefit obligation for the
non-qualified defined benefit pension plan, which is unfunded, were $68.0
million and $65.6 million at December 31, 2001 and $67.8 million and $59.0
million at December 31, 2000, respectively.
Pension Benefits Other Benefits
---------------- -------------
2001 2000 1999 2001 2000 1999
---- ---- ---- ---- ---- ----
Weighted-average assumptions as of December 31:
Discount rate.................................. 7.3% 7.5% 8.0% 0.0% 7.5% 8.0%
Expected return on plan assets................. 10.0% 10.0% 10.0% 0.0% 0.0% 0.0%
Rate of compensation increase(1)............... 0.0% 5.0% 5.0% 0.0% 5.0% 5.0%
- ----------
(1)No benefits bearing incentive compensation is assumed for 2002. Otherwise
benefits bearing compensation is assumed to increase by 4% for all
participants eligible for incentive compensation and by 5% for all others.
Benefits bearing incentive compensation for the top four officers is assumed
to be 5% of base salary after 2002.
For measurement purposes, a 10% percent annual rate of increase in the per
capita cost of covered health care benefits was assumed for 2002. The rate was
assumed to decrease gradually to 6% percent for 2010 and remain at that level
thereafter.
Components of net periodic benefit cost for the pension and other
post-retirement plans are as follows:
Pension Benefits Other Benefits
---------------------- -------------------
2001 2000 1999 2001 2000 1999
------ ------ ------ ----- ----- -----
($ in millions)
Components of net periodic benefit cost
Service cost........................... $ 8.3 $ 6.1 $ 11.7 $ 1.5 $ 1.2 $ 2.0
Interest cost.......................... 30.9 29.4 27.3 7.2 6.5 7.2
Expected return on plan assets......... (45.5) (46.9) (44.2) -- -- --
Amortization of prior service cost..... (0.8) (1.5) (0.8) (0.2) (0.1) (0.1)
Curtailment gain....................... -- (2.0) (3.8) -- -- --
Special termination benefits........... -- -- 50.0 -- -- --
Recognized net actuarial loss/(gain)... 1.1 (0.2) -- -- -- 1.1
Amortization of transition items....... (7.5) (7.9) (7.5) 3.1 3.1 3.1
------ ------ ------ ----- ----- -----
Net periodic benefit cost.............. $(13.5) $(23.0) $ 32.7 $11.6 $10.7 $13.3
====== ====== ====== ===== ===== =====
The Company also has a qualified money purchase pension plan covering
substantially all career field underwriters. Company contributions of 5% of
earnings plus an additional 2% of such earnings in excess of the social
security wage base are made each
F-252
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
year. At December 31, 2001 and 2000, the fair value of plan assets was $198.9
million and $231.2 million, respectively. For the years ended December 31,
2001, 2000, and 1999, the Company contributed $3.2 million, $3.2 million and
$3.1 million to the plan, respectively, which amounts are reflected in Other
Operating Costs and Expenses.
The Company has a non-qualified defined contribution plan, which is
unfunded. The non-qualified defined contribution plan projected benefit
obligation which equaled the accumulated benefit obligation was $59.5 million
and $61.0 million as of December 31, 2001 and 2000, respectively. The
non-qualified defined contribution plan's net periodic expense was $(0.2)
million, $7.2 million and $9.3 million for the years ended December 31, 2001,
2000 and 1999, respectively.
The Company also has incentive savings plans in which substantially all
employees and career field underwriters are eligible to participate. The
Company matches field underwriter contributions up to 2% of eligible
compensation and may also make an additional profit sharing contribution for
non-officer employees. As with the employee excess plan, the Company also
sponsors non-qualified excess defined contribution plans for both the field
underwriter retirement plan and the incentive savings plan for field
underwriters.
10. IncomeTaxes:
The Company files a consolidated federal income tax return with its parent,
The MONY Group Inc. and its other subsidiaries, as well as the Company's life
and non-life affiliates except Sagamore Financial Corporation and its
subsidiaries.
Income taxes have been calculated in accordance with the provisions of the
Internal Revenue Code of 1986, as amended. A summary of the income tax
(benefit)/expense is presented below:
2001 2000 1999
------ ------ ------
($ in millions)
Income tax (benefit) expense:
Current.............................................. $ 16.1 $ 82.1 $ 73.9
Deferred............................................. (35.2) 52.7 57.5
------ ------ ------
Income tax (benefit) expense before extraordinary item (19.1) 134.8 131.4
Extraordinary item................................... -- (20.3) --
------ ------ ------
Total.......................................... $(19.1) $114.5 $131.4
====== ====== ======
Income taxes reported in the consolidated statements of income are different
from the amounts determined by multiplying the earnings before income taxes by
the statutory federal income tax rate of 35%. The sources of the difference and
the tax effects of each are as follows:
2001 2000 1999
------ ------ ------
($ in millions)
Tax at statutory rate......................................... $(18.6) $139.6 $133.3
Dividends received deduction.................................. -- (2.5) (1.7)
Goodwill...................................................... 5.4 -- --
Tax Return to provision differences........................... (4.0) -- --
Tax Accruals.................................................. (3.2) -- --
Meals & Entertainment......................................... 1.3 -- --
Other......................................................... -- (2.3) (0.2)
------ ------ ------
Federal Income tax (benefit) expense before extraordinary item (19.1) 134.8 131.4
Extraordinary item........................................... -- (20.3) --
------ ------ ------
Provision for income taxes.................................... $(19.1) $114.5 $131.4
====== ====== ======
F-253
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
MONY Group's income tax returns for years through 1993 have been examined by
the Internal Revenue Service ("IRS"). No material adjustments were proposed by
the IRS as a result of these examinations. In the opinion of management,
adequate provision has been made for any additional taxes which may become due
with respect to open years.
The components of deferred tax liabilities and assets at December 31, 2001
and 2000 are reported in Accounts Payable and Other Liabilities in the balance
sheet and are as follows:
2001 2000
------ ------
($ in millions)
Deferred policy acquisition costs............ $191.1 $163.3
Fixed maturities and equity securities....... 56.2 25.3
Other, net(1)................................ 68.7 67.8
Nonlife subsidiaries......................... (9.7) 17.2
------ ------
Total deferred tax liabilities............... 306.3 273.6
------ ------
Policyholder and separate account liabilities 112.8 129.7
Accrued expenses............................. 19.2 48.6
Deferred compensation and benefits........... 66.7 38.2
Real estate and mortgages.................... 48.9 (2.3)
------ ------
Total deferred tax assets............. 247.6 214.2
------ ------
Net deferred tax liability............ $(58.7) $(59.4)
====== ======
- ----------
(1)Includes $10.9 million and $10.7 million at December 31, 2001 and 2000 of
deferred taxes relating to net unrealized gains on fixed maturity securities
in the AEGON Portfolio (see Note 11).
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.
11. The Group Pension Transaction:
On December 31, 1993 (the "Group Pension Transaction Date"), the Company
entered into an agreement (the "Agreement") with AEGON USA, Inc. ("AEGON")
under which the Company transferred a substantial portion of its group pension
business (hereafter referred to as the "Group Pension Transaction"), including
its full service group pension contracts, consisting primarily of tax-deferred
annuity, 401(k) and managed funds lines of business, to AEGON's wholly-owned
subsidiary, AUSA Life Insurance Company, Inc. ("AUSA"). The Company also
transferred to AUSA the corporate infrastructure supporting the group pension
business, including data processing systems, facilities and regional offices.
AUSA was newly formed by AEGON solely for the purpose of facilitating this
transaction. In connection with the transaction, the Company and AEGON have
entered into certain service agreements. These agreements, among other things,
provided that the Company will continue to manage the transferred assets, and
that AUSA will continue to provide certain administrative services to the
Company's remaining group pension contracts not included in the transfer.
Pursuant to the Agreement, MONY Life agreed to make a $200 million capital
investment in AEGON by purchasing $150 million face amount of Series A Notes
and $50 million face amount of Series B Notes (hereinafter referred to as the
"Notes"). The Series A Notes pay interest at 6.44% per annum and the Series B
Notes pay interest at 6.24% per annum. Both the Series A Notes and the Series B
Notes mature on December 31, 2002. MONY Life's investment in the Series A Notes
was intended to provide AEGON with the funding necessary to capitalize AUSA.
In accordance with GAAP, the transaction did not constitute a sale because
the Company retained substantially all the risks and rewards associated with
the Existing Deposits. Accordingly, the Company continues to reflect the
transferred assets and
F-254
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
liabilities on its balance sheet under separate captions entitled "Assets
transferred in Group Pension Transaction" and "Liabilities transferred in Group
Pensi on Transaction." In addition, the Company reports in its GAAP earnings
the profits from the Existing Deposits as discussed below.
Pursuant to the Agreement, MONY Life receives from AUSA: (i) payments on an
annual basis through December 31, 2002 (the "Group Pension Payments") equal to
all of the earnings from the Existing Deposits, (ii) a final payment (the
"Final Value Payment") at December 31, 2002 based on the remaining fair value
of the Existing Deposits, and (iii) a contingent payment (the "New Business
Growth Payment") at December 31, 2002 based on new business growth subsequent
to the Transaction Date. However, the level of new business growth necessary
for MONY Life to receive the New Business Growth Payment makes it unlikely that
MONY Life will ever receive any such payment.
With respect to the Group Pension Payments, the annual results from the
Existing Deposits are measured on a basis in accordance with the Agreement
(such basis hereafter referred to as the "Earnings Formula") which is
substantially the same as GAAP, except that: (i) asset impairments on fixed
maturity securities are only recognized when such securities are designated
with an NAIC rating of "6", and (ii) no impairment losses are recognized on
mortgage loans until such loans are disposed of or at the time, and in the
calculation, of the Final Value Payment.
Earnings which emerge from the Existing Deposits pursuant to the application
of the Earnings Formula are recorded in the Company's financial statements only
after adjustments (primarily to recognize asset impairments in accordance with
SFAS Nos. 114 and 115) to reflect such earnings on a basis entirely in
accordance with GAAP (such earnings hereafter referred to as the "Group Pension
Profits"). Losses which arise from the application of the Earnings Formula for
any annual period will be reflected in the Company's results of operations
(after adjustments to reflect such losses in accordance with GAAP) only up to
the amount for which the Company is at risk (as described below), which at any
time is equal to the then outstanding principal amount of the Series A Notes.
Operating losses reported in any annual period pursuant to the Earnings
Formula are carried forward to reduce any earnings in subsequent years reported
pursuant to the Earnings Formula. Any resultant deficit remaining at December
31, 2002 will be deducted from the Final Value Payment and New Business Growth
Payment, if any, due to the Company. If a deficit still remains, it will be
applied (as provided for in the Agreement) as an offset against the principal
payment due to the Company upon maturity of the Series A Notes. The Company
expects to record income in the fourth quarter of 2002 of approximately $55.0
million to the Final Value Payment, as defined in the Agreement.
For the years ended December 31, 2001, 2000 and 1999, AUSA reported earnings
to the Company pursuant to the application of the Earnings Formula of $27.4
million, $26.9 million, and $35.7 million, respectively, and the Company
recorded Group Pension Profits of $30.7 million, $37.1 million and $63.0
million, respectively. In addition, the Company earned $12.8 million of
interest income on the Notes in each of the aforementioned years.
The following sets forth certain summarized financial information relating
to the Group Pension Transaction as of and for the periods indicated, including
information regarding: (i) the general account assets transferred to support
the Existing Deposits in the Group Pension Transaction (such assets hereafter
referred to as the "AEGON Portfolio"), (ii) the transferred separate account
assets and liabilities, and (iii) the components of revenue and expenses
comprising the Group Pension Profits:
F-255
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
As of December 31,
-----------------
2001 2000
-------- --------
Assets:
General Account
Fixed maturities: available for sale, at estimated fair value (amortized cost;
$1,371.2 and $1,420.8, respectively).............................................. $1,400.5 $1,419.0
Mortgage loans on real estate...................................................... 26.5 47.5
Cash and cash equivalents.......................................................... 19.4 18.5
Accrued investment income.......................................................... 24.5 26.0
-------- --------
Total general account assets.................................................. 1,470.9 1,511.0
Separate account assets.............................................................. 3,179.5 3,416.7
-------- --------
Total assets.................................................................. $4,650.4 $4,927.7
======== ========
Liabilities:
General liabilities account (1)
Policyholders' account balances.................................................... $1,398.8 $1,468.1
Other liabilities.................................................................. 8.2 12.2
-------- --------
Total general account liabilities............................................. 1,407.0 1,480.3
Separate account liabilities (2)..................................................... 3,179.5 3,416.7
-------- --------
Total liabilities............................................................. $4,586.5 $4,897.0
======== ========
- ----------
(1)Includes general account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $71.2 million
and $74.2 million as of December 31, 2001 and 2000, respectively.
(2)Includes separate account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $11.8 million
and $14.7 million as of December 31, 2001 and 2000, respectively.
For the Year Ended December 31,
-------------------------------
2001 2000 1999
------ ------ ------
($ in millions)
Revenues:
Product policy fees........................................................ $ 19.6 $ 26.3 $ 24.0
Net investment income...................................................... 102.0 113.5 128.4
Net realized gains (losses) on investments................................. 1.5 (1.2) 18.9
------ ------ ------
Total revenues...................................................... 123.1 138.6 171.3
Benefits and Expenses:
Interest credited to policyholders' account balances....................... 74.8 84.6 88.4
Other operating costs and expenses......................................... 17.6 16.9 19.9
------ ------ ------
Total benefits and expenses......................................... 92.4 101.5 108.3
Group Pension Profits............................................... $ 30.7 $ 37.1 $ 63.0
====== ====== ======
Fixed Maturity Securities Available For Sale
At December 31, 2001 and 2000, there were $2.9 million and $2.4 million of
fixed maturity securities available for sale in the AEGON Portfolio deemed to
have other than temporary impairments in value. In addition, there were no
fixed maturity securities at such dates which had been non-income producing for
the preceding twelve months.
At December 31, 2001 and 2000, there were $2.9 million and $2.4 million of
problem fixed maturities (as hereafter defined--see Note 5) held in the AEGON
Portfolio. In addition, at such dates there were no potential problem fixed
maturities held in the AEGON Portfolio. Also, none of the fixed maturity
securities held in the AEGON Portfolio at December 31, 2001 and 2000 or prior
thereto had been restructured.
F-256
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table presents the amortized cost and estimated fair value of
fixed maturities available for sale held in the AEGON Portfolio, by contractual
maturity dates as of December 31, 2001. Periodic payments have been included in
the year of final maturity.
Estimated
Amortized Fair
Cost Value
--------- ---------
($ in millions)
Due in one year or less............... $ 132.4 $ 134.0
Due after one year through five years. 967.8 993.1
Due after five years through ten years 126.1 125.6
Due after ten years................... 26.1 26.9
-------- --------
Subtotal.............................. 1,252.4 1,279.6
Mortgage and asset backed securities.. 118.8 120.9
-------- --------
Total.......................... $1,371.2 $1,400.5
======== ========
Fixed maturity securities available for sale 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.
The percentage of fixed maturities available for sale with a credit quality
of Aaa, Aa or A was 75.3% and 72.6% at December 31, 2001 and 2000,
respectively. The percentage of fixed maturities available for sale rated Baa
was 22.0% and 24.5% at December 31, 2001 and 2000, respectively. The percentage
of fixed maturities available for sale that were below Investment Grade was
2.7% and 2.9% at December 31, 2001 and 2000, respectively. There were no fixed
maturities available for sale in or near default.
The net change in unrealized investment gains (losses) represents the only
component of other comprehensive income generated by the AEGON Portfolio for
the years ended December 31, 2001, 2000, 1999 and prior thereto. The net change
in unrealized investment gains (losses) was $31.0 million, $20.6 million and
$(77.9) million for the years ended December 31, 2001, 2000 and 1999,
respectively (see Note 4).
Mortgage Loans on Real Estate
Mortgage loans on real estate in the AEGON Portfolio at December 31, 2001
and 2000, respectively, totaled $26.4 million, net of a valuation allowance of
$2.0 million, and $47.5 million net of a valuation allowance of $2.5 million.
An analysis of the valuation allowances with respect to the AEGON Portfolio
for 2001, 2000 and 1999 is as follows:
For the Year Ended
December 31,
-------------------
2001 2000 1999
----- ----- -----
($ in millions)
Balance, beginning of year............ $ 2.5 $ 4.3 $16.0
Increase (decrease) in allowance...... 1.1 0.2 (6.7)
Reduction due to pay downs and payoffs (1.6) (2.0) (1.0)
Transfer to real estate............... 0.0 0.0 (4.0)
----- ----- -----
Balance, end of year.................. $ 2.0 $ 2.5 $ 4.3
===== ===== =====
F-257
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Impaired mortgage loans along with related valuation allowances with respect
to the AEGON Portfolio at December 31, 2001, 2000 and 1999 are as follows:
For the Year Ended
December 31,
-------------------
2001 2000 1999
----- ----- -----
($ in millions)
Investment in impaired mortgage loans (before valuation allowances):
Loans that have valuation allowances............................... $ 8.0 $19.1 $34.3
Loans that do not have valuation allowances........................ 2.5 -- 4.4
----- ----- -----
Subtotal..................................................... 10.5 19.1 38.7
Valuation allowances................................................ (1.7) (1.8) (2.7)
----- ----- -----
Impaired mortgage loans, net of valuation allowances................ $ 8.8 $17.3 $36.0
===== ===== =====
For the years ended December 31, 2001, 2000, and 1999 approximately $1.1
million, $2.1 million, and $2.9 million, respectively, of interest income on
impaired loans with respect to the AEGON Portfolio was earned.
At December 31, 2001 and 2000 the AEGON Portfolio held restructured mortgage
loans of $8.8 million and $15.3 million, respectively. Interest income of $0.9
million, $1.6 million, and $2.9 million was recognized on restructured mortgage
loans for the years ended December 31, 2001, 2000, and 1999, respectively.
Gross interest income on these loans that would have been recorded in
accordance with the original terms of such loans amounted to approximately $1.1
million, $1.5 million, and $3.9 million for the years ended December 31, 2001,
2000, and 1999, respectively.
The following table presents the maturity distribution of mortgage loans
held in the AEGON Portfolio as of December 31, 2001:
December 31, 2001
---------------
Carrying % of
Value Total
--------- -----
($ in
millions)
Due in one year or less................................ $ 0.0 0.0%
Due after one year through five years.................. 17.3 65.5
Due after five years through ten years................. 9.1 34.5
----- -----
Total........................................... $26.4 100.0%
===== =====
Total problem, potential problem and restructured commercial mortgages as a
percentage of commercial mortgages were 33.3%, 36.4% and 36.6% at December 31,
2001, 2000 and 1999, respectively. Total valuation allowances as a percentage
of problem, potential problem and restructured commercial mortgages, at
carrying value, before valuation allowances were 16.2%, 9.4% and 7.0% as of
December 31, 2001, 2000 and 1999, respectively.
12. Estimated Fair Value of Financial Instruments:
The estimated fair values of the Company's financial instruments approximate
their carrying amounts, except for mortgage loans, long-term debt and
investment-type contracts. The methods and assumptions utilized in estimating
the fair values of the Company's financial instruments are summarized as
follows:
Fixed Maturity and Equity Securities
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
F-258
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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. Equity
securities primarily consist of investments in common stocks and limited
partnership interests. The fair value of the Company's investments in common
stocks are determined based on quoted market prices, where available. The fair
value of the Company's investments in limited partnership interests are based
on amounts reported by such partnerships to the Company.
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. At
December 31, 2001 and 2000, the fair value of mortgage loans was $1,880.8
million and $1,746.3 million, respectively.
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 is determined based on contractual cash
flows discounted at market rates.
Separate Account Assets and Liabilities
The estimated fair value of assets and liabilities held in separate accounts
is based on quoted market prices.
Investment-Type Contracts
The fair values of annuities are based on estimates of the value of payments
available upon full surrender. The carrying value and fair value of annuities
at December 31, 2001 were $1,196.8 million and $1,187.6 million, respectively.
The carrying value and fair value of annuities at December 31, 2000 were
$1,102.5 million and $1,098.7 million, respectively.
13. Reinsurance:
Life insurance business is primarily ceded on a yearly renewable term basis
under various reinsurance contracts except for the level term product which
utilizes a coinsurance agreement. The Company's general practice is to retain
no more than $4.0 million of risk on any one person for individual products and
$6.0 million for last survivor products.
The Company has entered into coinsurance agreements with other insurers
related to a portion of its extended term insurance, guaranteed interest
contract and long-term disability claim liabilities, and reinsures
approximately 50% of its block of paid-up life insurance policies.
The following table summarizes the effect of reinsurance for the years
indicated:
2001 2000 1999
------- ------- -------
($ in millions)
Direct premiums (includes $67.7, $70.9 and $74.4 of accident and health premiums for 2001, 2000,
and 1999, respectively).......................................................................... $ 803.6 $ 806.0 $ 821.4
Reinsurance assumed................................................................................ 6.0 5.3 5.0
Reinsurance ceded (includes $(64.3), $(70.4), and $(73.8) of accident and health premiums for 2001,
2000, and 1999, respectively).................................................................... (114.4) (110.8) (109.4)
------- ------- -------
Net premiums....................................................................................... $ 695.2 $ 700.5 $ 717.0
======= ======= =======
Universal life and investment type product policy fee income ceded................................. $ 25.4 $ 23.1 $ 14.0
------- ------- -------
Policyholders' benefits ceded...................................................................... $ 141.3 $ 107.9 $ 103.9
======= ======= =======
Interest credited to policyholders' account balances ceded......................................... $ 3.7 $ 3.6 $ 4.5
======= ======= =======
F-259
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The Company is primarily 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.
14. Debt:
The Company's debt at December 31, 2001 and 2000 consists of the following:
2001 2000
------ ------
($ in millions)
Short term debt:
Real estate mortgage encumbrances $ -- $ 52.3
------ ------
Total short term debt............ $ -- $ 52.3
====== ======
Long term debt:
Surplus notes.................... $ 1.9 $ 2.0
Inter-Company Surplus Notes...... 215.0 215.0
------ ------
Total long term debt............. $216.9 $217.0
====== ======
Surplus Notes
On January 12, 2000, MONY Group filed a registration statement on Form S-3
with the Securities and Exchange Commission (the "SEC") to register certain
securities. This registration, known as a "Shelf Registration", provides MONY
Group with the ability to offer various securities to the public, when it deems
appropriate, to raise proceeds up to an amount not to exceed $1.0 billion in
the aggregate for all issuances of securities thereunder.
On March 8, 2000, MONY Group issued $300.0 million principal amount of
senior notes (the "$300 million Senior Notes") pursuant to the aforementioned
Shelf Registration. The $300 million Senior Notes mature on March 15, 2010 and
bears interest at 8.35% per annum. Approximately $280.0 million of the net
proceeds from the issuance of the Senior Notes was used by MONY Group as
discussed below to finance the repurchase, on March 8, 2000, by MONY Life of
all of its outstanding $115.0 million face amount 9.5% coupon surplus notes,
and $116.5 million face amount of its $125.0 million face amount 11.25% coupon
surplus notes (hereafter referred to as the "9.5% Notes" and the "11.25%
Notes", respectively), which were outstanding at December 31, 1999. In the
third quarter of 2000, the Company repurchased another $6.5 million face amount
of the 11.25% notes and in the first quarter of 2001, the Company repurchased
another $0.1 million face amount of the 11.25% Notes.
To finance MONY Life's repurchase of the 9.5% Notes and the 11.25% Notes,
MONY Group, on March 8, 2000: (i) purchased two surplus notes from MONY Life
(hereafter referred to as the "Inter-company Surplus Notes") to replace the
9.5% Notes and the 11.25% Notes, and (ii) contributed capital to MONY Life in
the amount of $65 million.
The Inter-company Surplus Note issued to replace the 9.5% Notes has a par
value of $115 million, a coupon rate of interest of 8.65%, and matures on
December 31, 2012. The inter-company surplus note issued to replace the 11.25%
Notes has a par value of $100 million, a coupon rate of interest of 8.65%, and
matures on August 15, 2024. Principal on the Inter-company Surplus Notes is
payable at maturity and interest is payable semi-annually.
As a result of the repurchase of the 9.5% Notes and substantially all of the
11.25% Notes, the Company recorded a pre-tax tax loss of $58.1 million ($37.7
million after tax) during 2000. The loss resulted from the premium paid by the
Company to the holders of the 9.5% Notes and the 11.25% Notes reflecting the
excess of their fair value over their carrying value on the Company's books at
the date of the transaction of approximately $7.0 million and $51.1 million,
respectively. This loss is reported, net of tax, as an extraordinary item on
the Company's income statement for the year ended December 31, 2000.
F-260
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Real Estate Mortgage Encumbrances
The Company initially had one mortgage loan on one of its real estate
properties. For the years ended December 31, 2001, 2000 and 1999, interest
expense on mortgage loans aggregated $1.2 million, $5.3 million, and $5.0
million, respectively.
15. Securities Lending and Concentration of Credit Risk:
Securities Lending 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, 2001 and 2000, securities loaned by the Company
under this agreement had a fair value of approximately $161.5 million and
$160.9 million, respectively. The minimum collateral on securities loaned is
102 percent 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, 2001 and 2000, the Company had no single investment or
series of investments with a single issuer (excluding U.S. Treasury securities
and obligations of U.S. government agencies) exceeding 1.9% and 1.0%,
respectively, of total cash and invested assets.
The Company's fixed maturity securities are diversified by industry type.
The industries that comprise 10.0% or more of the carrying value of the fixed
maturity securities at December 31, 2001 are Consumer Goods of $1,225.1 million
(17.6%), Non-Government Asset/Mortgage Backed securities of $793.1 million
(11.4%), and Public Utilities of $739.8 million (10.6%).
At December 31, 2000 the industries that comprised 10.0% or more of the
carrying value of the fixed maturity securities were Consumer Goods of $1,042.9
million (15.6%), Non-Government Asset/Mortgage-Backed securities of $765.0
million (11.4%), Public Utilities of $760.5 million (11.4%), and other
manufacturing of $674.5 million (10.1%).
The Company held below investment grade fixed maturity securities with a
carrying value of $603.1 million at December 31, 2001. 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, 2000,
the carrying value of the Company's investments in below investment grade fixed
maturity securities amounted to $526.0 million.
The Company has significant investments in commercial and agricultural
mortgage loans and real estate (including joint ventures and partnerships). The
locations of property collateralizing mortgage loans and real estate investment
carrying values at December 31, 2001 and 2000 are as follows:
2001 2000
-------------- --------------
($ in millions)
Geographic Region
Mountain......... $ 414.2 20.3% $ 430.0 22.0%
Southeast........ 449.1 22.0 420.3 21.3
Midwest.......... 336.2 16.5 322.8 16.4
West............. 361.6 17.7 340.9 17.3
Northeast........ 274.1 13.4 337.9 17.2
Southwest........ 205.3 10.1 114.8 5.8
-------- ----- -------- -----
Total..... $2,040.5 100.0% $1,966.7 100.0%
======== ===== ======== =====
F-261
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The states with the largest concentrations of mortgage loans and real estate
investments at December 31, 2001 are: California, $240.0 million (11.8%);
Arizona, $201.5 million (9.9%); Texas, $158.1 million (7.8%); New York, $150.0
million (7.4%); Georgia, $147.5 million (7.2%); Washington D.C., $126.5 million
(6.2%); and Colorado, $102.7 million (5.0%).
As of December 31, 2001 and 2000, the real estate and mortgage loan
portfolio was also diversified by property type as follows:
2001 2000
-------------- --------------
($ in millions)
Property Type
Office buildings... $ 873.3 42.7% $ 853.4 43.4%
Agricultural....... 304.9 15.0 311.3 15.8
Hotel.............. 297.8 14.6 287.6 14.6
Retail............. 138.8 6.8 147.4 7.5
Other.............. 135.1 6.6 132.9 6.8
Industrial......... 156.6 7.7 133.6 6.8
Apartment buildings 134.0 6.6 100.5 5.1
-------- ----- -------- -----
Total....... $2,040.5 100.0% $1,966.7 100.0%
======== ===== ======== =====
16. Commitments and Contingencies:
Since late 1995 a number of purported class actions have been commenced in
various state and federal courts against MONY and MLOA 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 (i.e., 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 and MLOA from canceling policies
for failure to make required premium payments, imposition of a constructive
trust and creation of a claims resolution facility to adjudicate any individual
issues remaining after resolution of all class-wide issues) as opposed to
compensatory damages, although they also seek compensatory damages in
unspecified amounts. MONY and MLOA have answered the complaints in each action
(except for one being voluntarily held in abeyance). MONY and MLOA have denied
any wrongdoing and have 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 of America), 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
MONY and MLOA and sold on an alleged "vanishing premium" basis during the
period January 1, 1982 to December 31, 1995. On March 27, 1997, MONY and MLOA
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 MONY's and
MLOA's motion for summary judgment and dismissed all claims filed in the Goshen
case against MONY and MLOA. 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
F-262
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
of all class members whose claims accrued prior to November 29, 1992 are barred
by the applicable statute of limitations. On August 9, 2001, the New York State
Appellate Division, First Department, affirmed the ruling limiting the class to
New York purchasers. On January 15, 2002, the New York State Court of Appeals
granted the plaintiffs' motion for leave to appeal from that decision. MONY and
MLOA intend to defend itself vigorously against plaintiffs' appeal and the sole
remaining claim. There can be no assurance, however, that the present
litigation relating to sales practices will not have a material adverse effect
on the Company.
On November 16, 1999, the MONY Group and MONY Life were served with a
complaint in an action entitled Calvin Chatlos, M.D., and Alvin H. Clement, On
Behalf of Themselves And All Others Similarly Situated v. The MONY Life
Insurance Company, The MONY Group Inc., and Neil D. Levin, Superintendent, New
York Department of Insurance, filed in the United States District Court for the
Southern District of New York. The action purports to be brought as a class
action on behalf of all individuals who had an ownership interest in one or
more in force life insurance policies issued by MONY Life as of November 16,
1998. The complaint alleges that (i) the New York Superintendent of Insurance,
Neil D. Levin, violated Section 7312 of the New York Insurance Law by approving
the Plan of Demutualization, which plaintiffs claim was not fair and adequate,
primarily because it allegedly failed to provide for sufficient assets for the
mechanism established under the plan to preserve reasonable dividend
expectations of the closed block, and (ii) MONY Life violated Section 7312 by
failing to develop and submit to the New York Superintendent a plan of
demutualization that was fair and adequate. The plaintiffs seek equitable
relief in the form of an order vacating and/or modifying the New York
Superintendent's order approving the Plan of Demutualization and/or directing
the New York Superintendent to order MONY Life to increase the assets in the
closed block, as well as unspecified monetary damages, attorneys' fees and
other relief.
In early January 2000, the MONY Group, MONY Life and the New York
Superintendent wrote to the District Court seeking a pre-motion conference
preliminary to the filing of a motion to dismiss the federal complaint on
jurisdictional, federal abstention and timeliness grounds and for failure to
state a claim. Following receipt of those letters, plaintiffs' counsel offered
voluntarily to dismiss their complaint, and a stipulation and order to that
effect was thereafter filed and approved by the court.
On March 27, 2000, plaintiffs filed a new action in New York State Supreme
Court bearing the same caption and naming the same defendants as the previously
filed federal action. The state court complaint differs from the complaint
previously filed in federal court in two primary respects. First, it no longer
asserts a claim for damages against the New York Superintendent, nor does its
prayer for relief seek entry of an order vacating or modifying the New York
Superintendent's decision or requiring the New York Superintendent to direct
MONY Life to place additional assets into the closed block. Rather, it seeks an
accounting and an order from the Court directing MONY Life to transfer
additional assets to the closed block.
Second, the new complaint contains claims for breach of contract and
fiduciary duty, as well as new allegations regarding the adequacy of the
disclosures contained in the Policyholder Information Booklet distributed to
policyholders soliciting their approval of the plan of demutualization (which
plaintiffs claim violated both the New York Insurance Law and MONY Life's
fiduciary duties).
In order to challenge successfully the New York Superintendent's approval of
the plan, plaintiffs would have to sustain the burden of showing that such
approval was arbitrary and capricious or an abuse of discretion, made in
violation of lawful procedures, affected by an error of law or not supported by
substantial evidence. In addition, Section 7312 provides that MONY Life may ask
the court to require the challenging party to give security for the reasonable
expenses, including attorneys' fees, which may be incurred by MONY Life or the
New York Superintendent or for which MONY Life may become liable, to which
security MONY Life shall have recourse in such amount as the court shall
determine upon the termination of the action.
The MONY Group, MONY Life and the New York Superintendent moved to dismiss
the state court complaint in its entirety on a variety of grounds. On April 20,
2001, the New York Supreme Court granted both motions and dismissed all claims
against the MONY Group, MONY Life and the New York Superintendent. On June 29,
2001, plaintiffs filed a Notice of Appeal with the New York Appellate Division,
appealing the dismissal of the claims against the MONY Group, MONY Life and the
New York
F-263
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Superintendent. MONY Group and MONY Life intend to defend themselves vigorously
against plaintiffs' appeal. There can be no assurance, however, that the
present litigation 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 involve demands for
unspecified damages) in connection with its business. In the opinion of
management of the Company, resolution of contingent liabilities, income taxes
and other matters will not have a material adverse effect on the Company's
statutory surplus or results of operations.
At December 31, 2001, the Company had commitments to fund the following:
$113.3 million of equity partnership investments, $8.0 million private fixed
maturity with an interest rate of 10%, $9.4 million of fixed rate agricultural
loans with periodic interest rate reset dates with initial rates ranging from
6.25% to 7.45%, $191.2 million fixed and floating rate commercial mortgages
with interest rates ranging from 4.53% to 8.27% and $7.5 million of mezzanine
financing with pay rates ranging from 9.0% to 10.0%.
In addition, the Company maintains a syndicated credit facility with
domestic banks aggregating $150.0 million, with a scheduled renewal date in
June 2002. In accordance with certain covenants of the facilities, the Company
is required to maintain a certain statutory tangible net worth and debt to
capitalization ratio. The purpose of this facility is to provide additional
liquidity for any unanticipated short-term cash needs the Company might
experience and also to serve as support for the Company's $150.0 million
commercial paper program which was activated in the third quarter of 2000. The
Company has complied with all covenants of the facilities, has not borrowed
against these lines of credit since their inception, and does not have any
commercial paper outstanding as of September 30, 2001.
The Company has entered into various operating lease agreements for office
space, furniture and equipment. These leases have remaining non-cancelable
lease terms in excess of one year. Total rental expense for these operating
leases amounted to $24.5 million in 2001, $29.7 million in 2000, and $29.6
million in 1999. The future minimum rental obligations for the next five years
and thereafter under these leases are: $34.1 million for 2002, $31.2 million
for 2003, $27.4 million for 2004, $24.6 million for 2005, $22.3 million for
2006, and $127.9 million for the years thereafter.
In 1988, the Company financed one of its real estate properties under a
sale/leaseback arrangement with the proceeds received from the sale, amortized
into income over the life of the lease. The lease has a term of 20 years
beginning December 21, 1988 and requires minimum annual rental payments of $7.6
million in 2002, $7.7 million in 2003, $7.9 million in 2004, $8.0 million in
2005, $8.2 million for 2006 and $16.9 million for 2007 and thereafter. The
Company has the option to renew the lease at the end of the lease term.
17. Statutory Financial Information and Regulatory Risk-Based Capital:
The statutory net income reported by the Company for the years ended
December 31, 2001, 2000, and 1999 was $33.4 million, $235.4 million, and $151.0
million, respectively. The combined statutory surplus of the Company as of
December 31, 2001 and 2000 was $917.4 million and $1,154.8 million,
respectively. Each of the Company's insurance subsidiaries exceeds the minimum
risk based capital requirements imposed by such subsidiaries' state of domicile.
F-264
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
18. Closed Block--Summary Financial Information:
Summarized financial information of the Closed Block as of and for the years
ended December 31, 2001 and 2000 is presented below.
December 31, December 31,
2001 2000
------------ ------------
($ in millions)
Assets:
Fixed Maturities:
Available for sale, at estimated fair value (amortized
cost, $3,780.9 and $3,535.8)............................. $3,868.9 $3,543.1
Mortgage loans on real estate............................... 622.1 566.0
Other invested assets....................................... 6.2 0.7
Policy loans................................................ 1,144.3 1,183.9
Cash and cash equivalents................................... 56.2 167.8
Premiums receivable......................................... 12.5 13.6
Deferred policy acquisition costs........................... 500.6 552.6
Other assets................................................ 219.3 223.5
-------- --------
Total Closed Block assets............................ $6,430.1 $6,251.2
======== ========
Liabilities:
Future policy benefits...................................... $6,869.8 $6,826.8
Policyholders' account balances............................. 292.9 293.3
Other policyholders' liabilities............................ 162.2 173.5
Other liabilities........................................... 163.9 22.2
-------- --------
Total Closed Block liabilities....................... $7,488.8 $7,315.8
======== ========
For the year ended December 31,
-------------------------------
2001 2000 1999
--------- -------- --------
($ in millions)
Revenues:
Premiums.................................................... $ 551.4 $ 582.4 $ 620.8
Net investment income....................................... 397.6 395.7 375.1
Net realized gains (losses) on investments.................. 6.0 (7.0) 2.9
Other Income................................................ 2.4 2.2 1.4
--------- -------- --------
Total revenues....................................... 957.4 973.3 1,000.2
--------- -------- --------
Benefits and Expenses:
Benefits to policyholders................................... 606.9 620.9 640.1
Interest credited to policyholders' account balances........ 8.9 8.8 8.9
Amortization of deferred policy acquisition costs........... 59.4 60.4 67.5
Dividends to policyholders.................................. 233.1 232.9 228.8
Other operating costs and expenses.......................... 7.0 7.5 10.1
--------- -------- --------
Total benefits and expenses.......................... 915.3 930.5 955.4
--------- -------- --------
Contribution from the Closed Block................... $ 42.1 $ 42.8 $ 44.8
========= ======== ========
The carrying value of the Closed Block fixed maturity securities at December
31, 2001 and 2000 is net of adjustments for impairment of $10.9 million and
$12.5 million, respectively.
At December 31, 2001 and 2000, there were $0.0 million and $1.4 million of
fixed maturities which have been non-income producing for the twelve months
preceding such dates.
F-265
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
At December 31, 2001 and 2000, there were problem fixed maturities of $6.5
million and $11.8 million, respectively. At December 31, 2001 and 2000, there
were potential problem fixed maturity securities of $3.2 million and $5.9
million, respectively. There were no fixed maturities which were restructured
at December 31, 2001 and 2000.
The amortized cost and estimated fair value of fixed maturity securities in
the Closed Block, by contractual maturity dates, excluding scheduled sinking
funds, as of December 31, 2001 are as follows:
Estimated
Amortized Fair
Cost Value
--------- ---------
($ in millions)
Due in one year or less............... $ 226.5 $ 232.8
Due after one year through five years. 1,237.5 1,288.5
Due after five years through ten years 1,330.9 1,358.2
Due after ten years................... 474.6 472.1
-------- --------
Subtotal....................... 3,269.5 3,351.6
Mortgage and asset-backed securities.. 511.4 517.3
-------- --------
$3,780.9 $3,868.9
======== ========
Fixed maturity securities that are not due at a single maturity date have
been included in the preceding table in the year of final maturity. Actual
maturities may differ from contractual maturities because borrowers may have
the right to call or prepay obligations with or without call or prepayment
penalties.
Mortgage loans on real estate in the Closed Block at December 31, 2001 and
2000 consist of the following:
2001 2000
------ ------
($ in millions)
Commercial mortgage loans.................. $594.2 $529.7
Agricultural and other loans............... 40.2 51.1
------ ------
Subtotal............................ 634.4 580.8
Less: valuation allowances................. (12.3) (14.8)
------ ------
Mortgage loans, net of valuation allowances $622.1 $566.0
====== ======
An analysis of the valuation allowances for the years ended December 31,
2001 and 2000 is as follows:
2001 2000
----- -----
($ in millions)
Beginning balance..................... $14.8 $14.3
(Decrease)/Increase in allowance...... (2.4) 0.6
Reduction due to pay downs and payoffs (0.1) (0.1)
----- -----
Valuation Allowance................... $12.3 $14.8
===== =====
F-266
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Impaired mortgage loans along with related valuation allowances as of
December 31, 2001 and 2000 were as follows:
2001 2000
------ ------
($ in millions)
Investment in impaired mortgage loans (before valuation allowances):
Loans that have valuation allowances................................ $ 64.3 $ 71.9
Loans that do not have valuation allowances......................... 35.5 20.7
------ ------
Subtotal..................................................... 99.8 92.6
Valuation allowances................................................ (13.5) (16.1)
------ ------
Impaired mortgage loans, net of valuation allowances................ $ 86.3 $ 76.5
====== ======
For the year ended December 31, 2001, the Closed Block recognized $8.4
million of interest income on impaired loans. For the year ended December 31,
2000 the Closed Block recognized $7.9 million of interest income on impaired
loans.
At December 31, 2001 and 2000, there were no mortgage loans in the Closed
Block which were non-income producing for the twelve months preceding such
dates.
At December 31, 2001 and 2000, the Closed Block had restructured mortgage
loans of $12.2 million and $17.0 million, respectively. Interest income of $0.9
million and $1.4 million was recognized on such loans for the year ended
December 31, 2001 and 2000, respectively. Gross interest income on these loans
that would have been recorded in accordance with the original terms of such
loans amounted to approximately $1.3 million and $1.9 million for the
respective periods.
The pre-tax Contribution from the Closed Block includes only those revenues,
benefit payments, dividends, premium taxes, state guaranty fund assessments,
and investment expenses considered in funding the Closed Block. However, many
expenses associated with operating the Closed Block and administering the
policies included therein were excluded from and, accordingly, are not funded
in the Closed Block. These expenses are reported in the Company's statement of
operations, outside of the Contribution from the Closed Block, consistent with
how they are funded. Such expenses are reported in the separate line items to
which they apply based on the nature of such expenses. Federal income taxes
applicable to the Closed Block, which are funded in the Closed Block, are
reflected as a component of federal income tax expense in the Company's
statement of operations. Since many expenses related to the Closed Block are
funded outside the Closed Block, operating costs and expenses outside the
Closed Block are disproportionate to the level of business outside the Closed
Block.
19. Reorganization and Other Charges:
During 2001, the Company recorded charges aggregating approximately $144.4
million on a pre-tax basis. Of this amount approximately $56.8 million
represented "Reorganization Charges" taken in connection with the Company's
previously announced reorganization of certain of its businesses and $87.6
million represented "Other Charges" unrelated to the Company's reorganization
activities. The Reorganization Charges consisted of: (i) severance and related
benefits resulting from headcount reductions in the Company's home office and
career agency system, (ii) losses from abandonment of certain leased offices
and equipment, (iii) the write-off of deferred acquisition costs as a result of
the decision to exit certain international markets and lines of business, and
(iv) certain other charges. The Other Charges consisted of: (i) impairments of
certain invested assets and valuation related write-downs of private equity
securities held in the Company's equity method venture capital portfolio, (ii)
the write-off of a deferred sales charges in the Company's mutual fund business
to reflect revised estimates of recoverability which are principally due to the
decline in the value of the Company's internet funds, (iii) write-downs of
certain information technology assets, and (iv) other miscellaneous items.
F-267
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table summarizes the components of the Company's
Reorganization Charges and Other Charges, respectively:
Net
Realized
Operating Losses Total
--------- -------- ------
Reorganization Charges:
Severance benefits and incentive compensation................. $ 22.8 $ -- $ 22.8
Leased offices and equipment.................................. 8.7 -- 8.7
Deferred policy acquisition costs............................. 17.0 -- 17.0
Other......................................................... 8.3 -- 8.3
------ ----- ------
Subtotal--Reorganization Charges....................... 56.8 -- 56.8
Other Charges:
Asset Impairments and Valuation Related Write-downs........... 29.9 20.1 50.0
Deferred Sales Charges........................................ 7.0 -- 7.0
Information technology assets................................. 9.4 -- 9.4
Other......................................................... 21.2 -- 21.2
------ ----- ------
Subtotal--Other Charges................................ 67.5 20.1 87.6
------ ----- ------
Total--Reorganization and Other Charges before tax..... $124.3 $20.1 $144.4
====== ===== ======
Total--Reorganization and Other Charges after tax...... $ 80.8 $13.1 $ 93.9
====== ===== ======
All of the components of the Reorganization Charges reflected above, except
$17.0 million related to deferred policy acquisition costs and $5.3 million
related to investment expenses, are included in "Other Operating Costs and
Expenses" in the Company's consolidated income statement for the year ended
December 31, 2001. None of the Reorganization Charges reflected in the table
above have been allocated to the Company's segments. All such charges are
included as reconciling items of the segments to the Company's consolidated
income statement for the year ended December 31, 2001.
The following table indicates the line items in the Company's consolidated
and segmented income statements for the year ended December 31, 2001 that the
Other Charges in the table above are reflected in. In addition, all of the
reorganization charges are reflected in reconciling in the table as discussed
above.
Protection Accumulation Other Reconciling Total
---------- ------------ ----- ----------- ------
Premiums......................................... $ 1.0 $ -- $ -- $ -- $ 1.0
Net investment income............................ 20.3 3.8 3.3 5.3 32.7
Group pension profit............................. 2.5 -- -- 2.5
Benefits to policyholders........................ 1.8 3.9 -- -- 5.7
Amortization of deferred policy acquisition costs -- 2.0 -- 17.0 19.0
Other operating costs and expenses............... 17.6 10.3 1.0 34.5 63.4
----- ----- ---- ----- ------
Total Other Operating Charges.................... 43.2 20.0 4.3 56.8 124.3
Net realized losses on investments............... 14.9 2.8 2.4 -- 20.1
----- ----- ---- ----- ------
Total Other Charges....................... $58.1 $22.8 $6.7 $56.8 $144.4
===== ===== ==== ===== ======
Of the reorganization charges recorded, approximately $19.0 million meet the
definition of "restructuring charges" as defined by Emerging Issues Task Force
Consensus 94-3, "Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring)". At December 31, 2001 a liability for $12.8 million is
included in Accounts payable and other liabilities in the Company's
consolidated balance sheet.
F-268
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
20. Implications of the Events of September 11th :
The terrorist events of September 11th had no material effect on the
Company's financial position at December 31, 2001 or its results of operations
for the year then ended. The net effect of life insurance claims relating to
the incident (after reinsurance and the release of related policy reserves)
aggregated approximately $3.9 million pre-tax. In addition, the Company
incurred damages from the interruption of certain of its business operations.
These damages principally consist of: (i) lost revenues at MSC and Enterprise
resulting from the close of the New York securities markets, (ii) the temporary
closing of the Company's New York corporate offices, and (iii) lost revenues
resulting from the volatility of the securities markets and consumer
uncertainty with respect to equity based products in the aftermath of September
11th. To date, no determination has been made with respect to the Company's
ability to recover the aforementioned damages under its insurance coverages.
F-269
Appendix A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
Attained Age Death Benefit
- ------------ -------------
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............................................................... 101
95............................................................... 100
A-1
Appendix B
ALTERNATE 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.......................................................... 211
53.......................................................... 210
54.......................................................... 208
55.......................................................... 206
56.......................................................... 204
57.......................................................... 203
58.......................................................... 202
59.......................................................... 203
60.......................................................... 204
61.......................................................... 205
62.......................................................... 206
63.......................................................... 207
64.......................................................... 208
65.......................................................... 209
66.......................................................... 210
67.......................................................... 211
68.......................................................... 212
69.......................................................... 213
70.......................................................... 214
71.......................................................... 215
72.......................................................... 216
73.......................................................... 217
74.......................................................... 218
75.......................................................... 214
76.......................................................... 207
77.......................................................... 199
78.......................................................... 192
79.......................................................... 186
80.......................................................... 180
81.......................................................... 174
82.......................................................... 169
83.......................................................... 164
84.......................................................... 159
85.......................................................... 145
86.......................................................... 133
B-1
Attained Age Applicable Percentage
- ------------ ---------------------
87.......................................................... 120
88.......................................................... 105
89.......................................................... 105
90.......................................................... 105
91.......................................................... 104
92.......................................................... 103
93.......................................................... 102
94.......................................................... 101
95.......................................................... 100
B-2
Appendix C
DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
MALE
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
18................................. 728.68% 590.77%
19................................. 707.62 574.17
20................................. 687.37 558.07
21................................. 667.46 542.22
22................................. 647.92 526.63
23................................. 628.74 511.31
24................................. 609.54 496.26
25................................. 590.76 481.26
26................................. 572.38 466.56
27................................. 554.10 451.96
28................................. 536.27 437.70
29................................. 518.88 423.75
30................................. 501.92 410.14
31................................. 485.40 397.00
32................................. 469.31 384.18
33................................. 453.85 371.79
34................................. 438.80 359.81
35................................. 424.14 348.23
36................................. 410.04 337.03
37................................. 396.46 326.18
38................................. 383.38 315.76
39................................. 370.76 305.81
40................................. 358.57 296.22
41................................. 346.81 287.04
42................................. 335.54 278.22
43................................. 324.63 269.81
44................................. 314.16 261.75
45................................. 304.09 254.03
46................................. 294.39 246.61
47................................. 285.04 239.50
48................................. 276.02 232.68
49................................. 267.36 226.16
50................................. 259.04 219.90
51................................. 251.02 213.88
52................................. 243.33 208.11
53................................. 235.94 202.60
54................................. 228.86 197.34
55................................. 222.06 192.33
56................................. 215.56 187.55
57................................. 209.33 182.99
58................................. 203.37 178.63
59................................. 197.66 174.46
60................................. 192.20 170.45
61................................. 186.98 166.61
C-1
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
62................................. 181.99% 162.94%
63................................. 177.22 159.45
64................................. 172.68 156.13
65................................. 168.35 152.99
66................................. 164.24 150.02
67................................. 160.33 147.20
68................................. 156.60 144.52
69................................. 153.06 141.95
70................................. 149.67 139.49
71................................. 146.45 137.14
72................................. 143.43 134.90
73................................. 140.55 132.78
74................................. 137.83 130.79
75................................. 135.30 128.92
76................................. 132.92 127.18
77................................. 130.69 125.56
78................................. 128.59 124.03
79................................. 126.59 122.59
80................................. 124.70 121.20
81................................. 122.89 119.86
82................................. 121.17 118.59
83................................. 119.55 117.37
84................................. 118.03 116.23
85................................. 116.60 115.14
86................................. 115.26 114.11
87................................. 113.97 113.09
88................................. 112.72 112.05
89................................. 111.47 111.00
90................................. 110.17 109.86
91................................. 108.76 108.59
92................................. 107.18 107.09
93................................. 105.31 105.27
94................................. 103.00 102.99
95................................. 100.00 100.00
C-2
Appendix D
DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
FEMALE
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
18................................. 834.33% 734.20%
19................................. 807.96 710.85
20................................. 782.15 688.01
21................................. 756.99 666.21
22................................. 733.03 644.93
23................................. 709.65 624.17
24................................. 686.84 603.93
25................................. 664.60 584.56
26................................. 642.93 565.67
27................................. 621.82 547.24
28................................. 601.64 529.58
29................................. 581.97 512.35
30................................. 562.81 495.56
31................................. 544.16 479.44
32................................. 526.29 463.72
33................................. 508.89 448.60
34................................. 491.95 434.04
35................................. 475.69 420.02
36................................. 459.86 406.34
37................................. 444.65 393.15
38................................. 430.01 380.55
39................................. 415.92 368.49
40................................. 402.34 356.94
41................................. 389.25 345.85
42................................. 376.74 335.30
43................................. 364.65 325.13
44................................. 353.07 315.41
45................................. 341.85 306.10
46................................. 331.09 297.10
47................................. 320.73 288.44
48................................. 310.68 280.11
49................................. 300.99 272.07
50................................. 291.71 264.37
51................................. 282.75 256.96
52................................. 274.14 249.83
53................................. 265.85 242.95
54................................. 257.86 236.34
55................................. 250.15 229.97
56................................. 242.74 223.86
57................................. 235.60 217.95
58................................. 228.71 212.21
59................................. 222.05 206.64
60................................. 215.61 201.22
D-1
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
61................................. 209.36 195.96
62................................. 203.34 190.86
63................................. 197.56 185.95
64................................. 192.00 181.25
65................................. 186.70 176.77
66................................. 181.65 172.48
67................................. 176.83 168.37
68................................. 172.20 164.42
69................................. 167.73 160.60
70................................. 163.41 156.89
71................................. 159.25 153.30
72................................. 155.27 149.84
73................................. 151.47 146.54
74................................. 147.87 143.42
75................................. 144.48 140.48
76................................. 141.28 137.72
77................................. 138.27 135.12
78................................. 135.43 132.65
79................................. 132.74 130.32
80................................. 130.18 128.09
81................................. 127.75 125.96
82................................. 125.46 123.93
83................................. 123.30 122.01
84................................. 121.27 120.20
85................................. 119.37 118.50
86................................. 117.58 116.89
87................................. 115.88 115.36
88................................. 114.25 113.87
89................................. 112.64 112.39
90................................. 111.03 110.86
91................................. 109.35 109.25
92................................. 107.54 107.49
93................................. 105.49 105.47
94................................. 103.05 103.05
95................................. 100.00 100.00
D-2
Appendix E
ALTERNATE DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
MALE
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
18................................. 728.68% 590.77%
19................................. 707.62 574.17
20................................. 687.37 558.07
21................................. 667.46 542.22
22................................. 647.92 526.63
23................................. 628.74 511.31
24................................. 609.54 496.26
25................................. 590.76 481.26
26................................. 572.38 466.56
27................................. 554.10 451.96
28................................. 536.27 437.70
29................................. 518.88 423.75
30................................. 501.92 410.14
31................................. 485.40 397.00
32................................. 469.31 384.18
33................................. 453.85 371.79
34................................. 438.80 359.81
35................................. 424.14 348.23
36................................. 410.04 337.03
37................................. 396.46 326.18
38................................. 383.38 315.76
39................................. 370.76 305.81
40................................. 358.57 296.22
41................................. 346.81 287.04
42................................. 335.54 278.22
43................................. 324.63 269.81
44................................. 314.16 261.75
45................................. 304.09 254.03
46................................. 294.39 246.61
47................................. 285.04 239.50
48................................. 276.02 232.68
49................................. 267.36 226.16
50................................. 259.04 219.90
51................................. 251.02 213.88
52................................. 247.00 211.25
53................................. 244.00 209.53
54................................. 241.00 207.81
55................................. 238.00 206.14
56................................. 235.00 204.47
57................................. 232.00 202.80
58................................. 230.00 202.03
59................................. 230.00 203.00
60................................. 230.00 203.98
61................................. 230.00 204.95
E-1
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
62................................. 230.00 205.93
63................................. 230.00 206.95
64................................. 230.00 207.96
65................................. 230.00 209.01
66................................. 230.00 210.08
67................................. 230.00 211.17
68................................. 230.00 212.25
69................................. 230.00 213.31
70................................. 230.00 214.36
71................................. 230.00 215.38
72................................. 230.00 216.32
73................................. 230.00 217.29
74................................. 230.00 218.24
75................................. 221.89 211.43
76................................. 214.00 204.76
77................................. 205.18 197.13
78................................. 196.74 189.77
79................................. 189.89 183.88
80................................. 183.31 178.16
81................................. 176.96 172.61
82................................. 170.85 167.21
83................................. 164.98 161.98
84................................. 159.34 156.91
85................................. 145.75 143.93
86................................. 132.55 131.22
87................................. 119.67 118.74
88................................. 112.72 112.05
89................................. 111.47 111.00
90................................. 110.17 109.86
91................................. 108.76 108.59
92................................. 107.18 107.09
93................................. 105.31 105.27
94................................. 103.00 102.99
95................................. 100.00 100.00
E-2
Appendix F
ALTERNATE DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
FEMALE
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
18................................. 834.33% 734.20%
19................................. 807.96 710.85
20................................. 782.15 688.01
21................................. 756.99 666.21
22................................. 733.03 644.93
23................................. 709.65 624.17
24................................. 686.84 603.93
25................................. 664.60 584.56
26................................. 642.93 565.67
27................................. 621.82 547.24
28................................. 601.64 529.58
29................................. 581.97 512.35
30................................. 562.81 495.56
31................................. 544.16 479.44
32................................. 526.29 463.72
33................................. 508.89 448.60
34................................. 491.95 434.04
35................................. 475.69 420.02
36................................. 459.86 406.34
37................................. 444.65 393.15
38................................. 430.01 380.55
39................................. 415.92 368.49
40................................. 402.34 356.94
41................................. 389.25 345.85
42................................. 376.74 335.30
43................................. 364.65 325.13
44................................. 353.07 315.41
45................................. 341.85 306.10
46................................. 331.09 297.10
47................................. 320.73 288.44
48................................. 310.68 280.11
49................................. 300.99 272.07
50................................. 291.71 264.37
51................................. 282.75 256.96
52................................. 278.27 253.60
53................................. 274.93 251.25
54................................. 271.54 248.87
55................................. 268.10 246.47
56................................. 264.63 244.05
57................................. 261.11 241.54
58................................. 258.66 240.00
59................................. 258.39 240.05
60................................. 258.02 240.80
61................................. 257.53 241.05
F-1
Applicable Percentage Applicable Percentage
Attained Age Non-Smoker Smoker
- ------------ --------------------- ---------------------
62................................. 256.99 241.22
63................................. 256.40 241.34
64................................. 255.74 241.41
65................................. 255.07 241.50
66................................. 254.38 241.53
67................................. 253.67 241.53
68................................. 252.90 241.48
69................................. 252.06 241.33
70................................. 251.12 241.10
71................................. 250.12 240.76
72................................. 248.99 240.27
73................................. 247.88 239.81
74................................. 246.75 239.32
75................................. 236.94 230.39
76................................. 227.46 221.72
77................................. 217.08 212.13
78................................. 207.21 202.96
79................................. 199.11 195.47
80................................. 191.37 188.29
81................................. 183.97 181.38
82................................. 176.90 174.74
83................................. 170.15 168.37
84................................. 163.72 162.26
85................................. 149.21 148.13
86................................. 135.22 134.43
87................................. 121.68 121.13
88................................. 114.25 113.87
89................................. 112.64 112.39
90................................. 111.03 110.86
91................................. 109.35 109.25
92................................. 107.54 107.49
93................................. 105.49 105.47
94................................. 103.05 103.05
95................................. 100.00 100.00
F-2
Appendix G
ILLUSTRATIONS OF DEATH PROCEEDS, ACCOUNT VALUES AND
SURRENDER VALUES, AND ACCUMULATED PREMIUMS
The following tables illustrate how the key financial elements of the Policy
work, specifically, how the Death Proceeds and Surrender Values can vary over
an extended period of time. In addition, each table compares these values with
premium paid accumulated with interest.
The Policies illustrated include the following:
Def. of Death Target
Life Ins. Benefit Specified Death See
Sex Age Underwriting Method Smoker Test Option Amount Benefit Pages
- ---- --- ------------------- -------------------- --------- ------- --------- --------- -----
Male 45 Medical Issue Preferred Non-Smoker CVAT 1 1,000,000 1,000,000 G-7
Male 45 Medical Issue Preferred Non-Smoker CVAT 2 1,000,000 1,000,000 G-9
Male 45 Medical Issue Preferred Non-Smoker GPT 1 1,000,000 1,000,000 G-11
Male 45 Medical Issue Preferred Non-Smoker GPT 2 1,000,000 1,000,000 G-13
Male 45 Guaranteed Issue Non-Smoker CVAT 1 1,000,000 1,000,000 G-15
Male 45 Guaranteed Issue Non-Smoker CVAT 2 1,000,000 1,000,000 G-17
Male 45 Guaranteed Issue Non-Smoker GPT 1 1,000,000 1,000,000 G-19
Male 45 Guaranteed Issue Non-Smoker GPT 2 1,000,000 1,000,000 G-21
The tables show how Death Proceeds and Surrender 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% 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 Proceeds and Surrender Values will be different if
the returns averaged 0% 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 fourth column of each table shows what would happen if an amount equal
to the premiums (shown in the third column) were invested to earn interest,
after taxes, of 5% compounded annually. All premium payments are illustrated as
if they were made at the beginning of the year.
The amounts shown for Death Proceeds and Surrender Values sections reflect
the fact that 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, including the premium loads, administrative charges,
mortality and expense risk charges, and Sales Charges. The difference between
the Account Value and the Surrender Value in the first three years is the
refund of Sales Charges. Account Value is not shown in the accompanying tables.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance) and at the maximum rates
guaranteed in the Policies. The amounts shown at the end of the Policy year
reflect a daily charge against the Portfolios. These charges include the charge
to Portfolio assets for investment management and direct expenses. The initial
mortality and expense risk charge is .60% annually on a guaranteed basis;
illustrations showing current rates reflect a mortality and expense risk charge
of .30% annually beginning after the tenth Policy Anniversary; and
illustrations showing guaranteed rates reflect a mortality and expense risk
charge of .45% annually beginning on and after the tenth Policy Anniversary.
Since the Company is unable to predict how a particular Policy owner will
allocate net premium payments and cash values among the available Subaccounts,
the Company has assumed that the daily investment advisory fee and other
expenses of the hypothetical portfolio was deducted at a rate equivalent to
0.76% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum
G-1
investment advisory fee and other expenses of the Portfolios applicable to the
Subaccounts of the Variable Account. Of course, the investment advisory fee and
other expenses actually incurred will depend upon the Policy owner's choice of
Subaccounts. 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 "Fees and
Expenses of the Fund". 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 in the tables.
The effect of these investment management and direct expenses on a 0% gross
rate of return would result in a net rate of return of 0.76%, and on 12% it
would be 11.24%.
The tables assume the deduction of charges including administrative and sale
charges. For each age, there are tables using current and guaranteed policy
cost factors. The tables reflect the fact that the Company does not currently
make any charge against the Variable Account for state or federal taxes. If
such a charge is made in the future, it will take a higher rate of return to
produce after-tax returns of 0% and 12%.
The Company will furnish, upon request, a comparable illustration based on
the age and the sex of the proposed insured, underwriting and premium class
assumptions and an initial Specified Amount, Target Death Benefit and Schedule
Premium Payments of the applicant's choice. In addition, the individual chosen
Definition of Life Insurance Test will be illustrated. If a Policy is
purchased, an individualized illustration will be delivered reflecting the
Schedule 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.
This page, beginning with the next paragraph, pages G-3, G-4 and G-5 to the
section headed "Additional Riders and Benefits Included in This Proposal", will
precede each of the flexible premium variable life to age 95 compliance reports
statements and page G-5 from and after the section headed "Additional Riders
and Benefits Included in This Proposal" and concluding on page G-6 will follow
each of the flexible premium variable life to age 95 compliance reports
statements which begin on page G-7.
The Corporate Sponsored Variable Universal Life is a flexible premium
variable life insurance policy which provides insurance to maturity age 95. The
initial premium is due on or before delivery of the policy. You can choose the
amount and frequency of premium payments within certain limits.
The Death Proceeds, Account Value and Surrender Value under CSVUL Flexible
Premium Variable Life Insurance may vary up and down to reflect the investment
experience of the subaccounts of the Separate Account and are based on
hypothetical investments return assumptions. Each illustration assumes that the
combination of the amounts allocated by a policyowner to the subaccounts
experienced hypothetical gross rate of investment return equivalent to 0% and
any other rate specified to a maximum of 12%.
Subject to the terms of the policy, the policyowner may select and change
the death benefit Option. So long as the Policy remains in force, the death
benefit under either Option will never be less than the Specified Amount of the
Policy. Under Option 1, the death benefit will be equal to the Specified Amount
of the Policy or, if greater, the Cash 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 Account Value on the date of death
or, if greater, the Cash Value on the date of death multiplied by a Death
Benefit Percentage.
These illustrations of Death Proceeds, Account Value and Surrender Value are
designed to show the way in which variable life insurance operates. The
hypothetical returns are not intended as estimates of the future performance of
any subaccounts. MONY Life Insurance Company is not able to predict the future
performance of the subaccounts.
The values of each subaccount may vary up and down and the policyowner may
vary how premiums and cash values are allocated among the subaccounts.
Illustrations are based on assumed allocations and hypothetical
G-2
rates of return and reflect both guaranteed and non-guaranteed charges, fees
and deductions. These assumptions are made for illustrative purposes only and
actual performance may differ from what is shown.
Death Proceeds, Account Value and Surrender Value under the policy are
discussed in the prospectus and in your policy. The amounts for the Death
Proceeds, Account Value and Surrender Value are as of the end of the policy
year and take into consideration the charges and expenses assessed by the
policy as well as those assessed by the underlying funds.
The daily charge for investment advisory services and other costs and
expenses of operating the underlying Fund Portfolio varies by subaccount and
ranges from 0.17% to 2.12% on an annualized basis. Since a specific allocation
amongst subaccounts is not assumed in the illustration, the charge assumed is
equivalent to an annual rate of 0.76%. The actual charge will depend upon the
policyowner's choice of subaccounts.
The daily charges discussed in the second paragraph above are effectively
subtracted from the hypothetical gross investment rate of return. The resulting
net investment rate of return is shown in parentheses next to the hypothetical
gross rate.
Column Descriptions And Key Terms
Age BOY: Insured's attained age at the end of the policy
year.
Net Premium Outlay: The annualized out-of-pocket payments for each
policy year including scheduled and any
anticipated unscheduled premium payments less any
illustrated surrenders or loans plus loan
interest, if any. Premium payments are assumed to
be paid at the beginning of each premium paying
period.
Premium Accumulated at 5%: The amount to which the premiums paid for the
policy to the end of the policy year would
accumulate if an amount equal to such premium
were invested to earn interest, after taxes at 5%
compounded annually.
Annual Loan: Reflects any loans that have been requested.
Partial Surrenders from Reflects any partial surrenders that have been
Insurance Policy: requested. A partial surrender could reduce the
Death Proceeds, and will reduce the Account Value
and Surrender Value by the amount surrendered
plus a transaction fee, which is the lesser of
$25 or 2% of the amount surrendered.
Cash Value: Account Value plus any applicable refund of sales
charge.
Death Benefit: The greater of the Target Death Benefit and the
Base Death Benefit.
Enhanced Cash Surrender Value: If applicable, the amount received upon a full
surrender which includes an additional percentage
of the Cash Value less any outstanding debt
depending on whether the Enhanced Cash Value
Rider is in force and the year that a full
surrender is made.
Guaranteed Charges at 0.00%
Account Value: The value of the subaccount at the end of the
policy year assuming a 0.00% hypothetical rate of
return on the Funds, less all charges, fees and
deductions at their guaranteed maximum rate. The
Account Value also takes into account any loans
or partial surrenders illustrated.
G-3
Surrender Value: The value of the subaccount at the end of the
policy year assuming a 0.00% hypothetical rate of
return on the Funds, less all charges, fees and
deductions at their guaranteed maximum plus the
return of loads if the policy were surrendered
prior to the end of the first three years. The
Surrender Value also takes into account any loans
or partial surrenders illustrated.
Death Proceeds: The benefit payable under the policy and any
riders if the insured's death occurs at the end
of the policy year, assuming a 0.00% hypothetical
rate of return on the Funds, less all charges,
fees and deductions at their guaranteed maximums.
Guaranteed Charges at 12.00%
Account Value: The value of the subaccount at the end of the
policy year assuming a 12.00% hypothetical rate
of return on the Funds, less all charges, fees
and deductions at their guaranteed maximum rate.
The Account Value also takes into account any
loans or partial surrenders illustrated.
Surrender Value: The value of the subaccount at the end of the
policy year assuming a 12.00% hypothetical rate
of return on the Funds, less all charges, fees
and deductions at their guaranteed maximum plus
the return of loads if the policy were
surrendered prior to the end of the first three
years. The Surrender Value also takes into
account any loans or partial surrenders
illustrated.
Death Proceeds: The benefit payable under the policy and any
riders if the insured's death occurs at the end
of the policy year, assuming a 12.00%
hypothetical rate of return on the Funds, less
all charges, fees and deductions at their
guaranteed maximums.
Current Charges at 12.00%
Account Value: The value of the subaccount at the end of the
policy year assuming a 12.00% hypothetical rate
of return on the Funds, less all charges, fees
and deductions at their non-guaranteed maximum
rate. The Account Value also takes into account
any loans or partial surrenders illustrated.
Surrender Value: The value of the subaccount at the end of the
policy year assuming a 12.00% hypothetical rate
of return on the Funds, less all charges, fees
and deductions at the current non-guaranteed rate
plus the return of loads if the policy were
surrendered prior to the end of the first three
years. The Surrender Value also takes into
account any loans or partial surrenders
illustrated.
Death Proceeds: The benefit payable under the policy and any
rider if the insured's death occurs at the end of
the policy year, assuming a 12.00% hypothetical
rate of return on the Funds, less all charges,
fees and deductions at the current non-guaranteed
rates.
G-4
ENHANCED CASH VALUE RIDER
From Year 1 - 8
The Enhanced Cash Value Rider provides an increased Cash Value upon full
surrender of the policy. The increase is applied during the first 8 policy
years. Subject to the limitations and provisions of the Rider, the increase
varies based on the year of full surrender.
The enhanced amounts apply to a full cash surrender of the policy. The
enhanced amounts do not apply to partial surrenders, withdrawals made for
loans, surrenders or other dispositions in connection with an exchange, whether
qualifying under Section 1035 or not.
ADDITIONAL RIDERS AND BENEFITS INCLUDED IN THIS PROPOSAL
This illustration includes the following optional insurance benefits that
can be added to the policy by Rider. A charge will be deducted monthly from the
Account Value for each of the optional benefits added to the Policy. The
following is a brief summary of the Riders. Refer to the prospectus for further
explanations of each Rider.
Term Insurance Rider--From Year 1 - 0: This Rider provides for additional
death benefit on the life of the Insured automatically renewed each policy
anniversary on or before the Insured's age 95. The term of the renewal will be
for a period of one year.
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 modified endowment.
Based on actuarial assumptions, this contract will not be a MODIFIED
ENDOWMENT CONTRACT (MEC). Final determination of whether the contract becomes a
MEC rest with the IRS and Treasury Dept. Consult your tax advisor for the
specific tax consequences and determinations.
This illustration has been checked against federal tax laws relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or change in death
benefit 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 contract,
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.
Initial 7-pay premium... $52,449.81
Target premium.......... $52,449.81
Initial Guideline single Note: this amount is shown, if applicable,
on each illustration which follows
Initial Guideline annual Note: this amount is shown, if applicable,
on each illustration which follows
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 reflects
the effect of all loans and surrenders. The death benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's Surrender Value includes any sales charge refund and any
applicable Enhanced Cash Value amounts on full surrender. The sale charge
refund equals the sales charge collected in the first policy year or the
G-5
first policy year of an increase adjusted by the following schedule: Year
1--100%, Year 2--66.67%, Year 3--33.33%. The Enhanced Cash Value percentage
that will be applied is indicated in the Rider.
Premiums less the following deductions are added to the Account Value. (1) A
Massachusetts premium tax charge of 2.00% of gross premium in all years, (2) a
sales charge of the gross premium equal to 9.00% up to the target premium in
years 1-10, 0% in policy years 11 and after, and 0% of premium in excess of the
target premium in all years, (3) a DAC tax charge of 1.25% of gross premium in
all years. An administrative charge is deducted each month. During the first 36
months the charge is $12.50, thereafter, the charge is $7.50 per month.
Those columns assuming guaranteed charges use the current monthly mortality
charge and current charges for rider benefits, if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter, these columns use guaranteed charges for monthly mortality charges,
rider benefits, if any, and the assumed hypothetical gross annual investment
indicated. Those columns assuming current charges are based upon "current
charges" and the assumed gross annual investment return indicated.
The current charges are declared by MONY Life Insurance Company, are
guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company.
[INCLUDED IF LOAN IS ILLUSTRATED]
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. It is anticipated but not
guaranteed that after the 10th policy anniversary the annual interest rate
applicable to this loan amount will be .30% higher than the rate applicable to
policies of the same type which have not reached their 10th anniversary. This
increase is based on current expectations as to mortality, investment earnings,
persistency and expenses and is not guaranteed. If loan interest is not paid by
the policyholder when due, the amount of the loan interest will be added to the
amount of loan outstanding. This will have the effect of reducing the cash
value of the policy and may reduce benefits available under the policy.
Depending upon the performance of the subaccounts chosen by the policyholder,
the cash value available for loans may be more or less than the amount of the
premiums paid by the policyholder. Similarly, the amount of cash value
available for surrenders will depend upon the performance of the subaccounts
chosen by the policyholder, and the cash value available for surrenders may be
more or less than the amount of premiums paid by the policyholder. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
G-6
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI CVAT DB1, Male, Preferred Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,449.81 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 52,450 55,072 0 0 51,950 1,000,000 57,737 1,000,000 57,737 1,000,000
2 46 52,450 112,898 0 0 96,716 1,000,000 114,771 1,000,000 116,359 1,000,000
3 47 52,450 173,615 0 0 139,817 1,000,000 176,798 1,000,000 179,820 1,000,000
4 48 52,450 237,368 0 0 180,463 1,000,000 243,220 1,000,000 247,696 1,000,000
5 49 52,450 304,309 0 0 221,268 1,000,000 317,352 1,000,000 323,316 1,000,000
6 50 52,450 374,597 0 0 258,100 1,000,000 394,334 1,000,000 401,988 1,010,981
7 51 52,450 448,399 0 0 295,545 1,000,000 480,855 1,183,376 490,768 1,207,771
8 52 0 470,819 0 0 284,383 1,000,000 521,974 1,257,545 534,758 1,288,343
9 53 0 494,360 0 0 273,016 1,000,000 566,347 1,336,240 582,782 1,375,017
10 54 0 519,078 0 0 264,089 1,000,000 620,451 1,419,964 641,628 1,468,430
11 55 0 545,032 0 0 255,078 1,000,000 680,483 1,511,079 708,601 1,573,519
12 56 0 572,283 0 0 245,478 1,000,000 745,985 1,608,046 782,528 1,686,817
13 57 0 600,897 0 0 235,275 1,000,000 817,491 1,711,254 864,144 1,808,914
14 58 0 630,942 0 0 224,362 1,000,000 895,477 1,821,132 953,673 1,939,485
15 59 0 662,489 0 0 212,624 1,000,000 980,462 1,937,981 1,051,782 2,078,952
16 60 0 695,614 0 0 199,943 1,000,000 1,073,008 2,062,321 1,159,067 2,227,727
17 61 0 730,394 0 0 186,190 1,000,000 1,173,729 2,194,639 1,276,428 2,386,664
18 62 0 766,914 0 0 171,229 1,000,000 1,283,297 2,335,473 1,404,585 2,556,205
19 63 0 805,260 0 0 154,711 1,000,000 1,402,187 2,484,956 1,545,173 2,738,355
20 64 0 845,523 0 0 136,569 1,000,000 1,531,297 2,644,244 1,699,461 2,934,629
21 65 0 887,799 0 0 116,411 1,000,000 1,671,216 2,813,492 1,872,699 3,152,689
22 66 0 932,189 0 0 94,023 1,000,000 1,822,848 2,993,845 2,063,445 3,389,002
23 67 0 978,798 0 0 69,057 1,000,000 1,987,050 3,185,838 2,273,374 3,644,900
24 68 0 1,027,738 0 0 41,122 1,000,000 2,164,772 3,390,032 2,503,988 3,921,245
25 69 0 1,079,125 0 0 9,896 1,000,000 2,357,196 3,607,924 2,757,081 4,219,988
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-7
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI CVAT DB1, Male, Preferred Non-smoker, Age 45 TAX BRACKET %: 28% (ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,449.81 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender ------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- -------- ---------- ---------- ---------- ----------
26 70 0 1,133,081 0 0 0 0 2,565,204 3,839,341 3,034,990 4,542,469
27 71 0 1,189,735 0 0 0 0 2,788,966 4,084,440 3,339,926 4,891,322
28 72 0 1,249,222 0 0 0 0 3,030,811 4,347,091 3,674,680 5,270,593
29 73 0 1,311,683 0 0 0 0 3,291,010 4,625,515 4,041,591 5,680,456
30 74 0 1,377,267 0 0 0 0 3,570,466 4,921,173 4,443,793 6,124,879
31 75 0 1,446,130 0 0 0 0 3,870,591 5,236,910 4,884,707 6,609,009
32 76 0 1,518,436 0 0 0 0 4,192,847 5,573,132 5,367,508 7,134,492
33 77 0 1,594,358 0 0 0 0 4,538,836 5,931,805 5,895,865 7,705,306
34 78 0 1,674,076 0 0 0 0 4,910,725 6,314,701 6,467,833 8,316,987
35 79 0 1,757,780 0 0 0 0 5,310,701 6,722,816 7,091,429 8,977,040
36 80 0 1,845,668 0 0 0 0 5,740,836 7,158,823 7,772,037 9,691,730
37 81 0 1,937,952 0 0 0 0 6,202,964 7,622,822 8,513,675 10,462,455
38 82 0 2,034,849 0 0 0 0 6,698,826 8,116,967 9,330,970 11,306,336
39 83 0 2,136,592 0 0 0 0 7,230,557 8,644,131 10,225,439 12,224,512
40 84 0 2,243,421 0 0 0 0 7,800,270 9,206,659 11,202,505 13,222,317
41 85 0 2,355,592 0 0 0 0 8,411,362 9,807,648 12,271,415 14,308,469
42 86 0 2,473,372 0 0 0 0 9,067,848 10,451,602 13,438,760 15,489,515
43 87 0 2,597,040 0 0 0 0 9,775,132 11,140,718 14,716,596 16,772,505
44 88 0 2,726,892 0 0 0 0 10,540,255 11,880,975 16,116,264 18,166,252
45 89 0 2,863,237 0 0 0 0 11,372,026 12,676,397 17,652,062 19,676,753
46 90 0 3,006,398 0 0 0 0 12,282,764 13,531,920 19,339,406 21,306,223
47 91 0 3,156,718 0 0 0 0 13,289,243 14,453,380 21,204,582 23,062,104
48 92 0 3,314,554 0 0 0 0 14,416,146 15,451,225 23,279,431 24,950,894
49 93 0 3,480,281 0 0 0 0 15,702,124 16,535,906 25,609,386 26,969,244
50 94 0 3,654,295 0 0 0 0 17,209,760 17,726,052 28,262,166 29,110,030
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-8
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI CVAT DB2, Male, Preferred Non-smoker, Age 45 TAX BRACKET%: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,449.81 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 52,450 55,072 0 0 51,869 1,044,679 57,646 1,050,181 57,646 1,050,181
2 46 52,450 112,898 0 0 96,292 1,086,845 114,260 1,103,639 116,025 1,105,287
3 47 52,450 173,615 0 0 138,861 1,128,203 175,554 1,162,495 178,997 1,165,714
4 48 52,450 237,368 0 0 178,762 1,168,643 240,827 1,227,196 246,078 1,232,149
5 49 52,450 304,309 0 0 218,588 1,208,179 313,275 1,298,357 320,491 1,305,230
6 50 52,450 374,597 0 0 254,226 1,246,821 387,963 1,376,663 397,619 1,386,038
7 51 52,450 448,399 0 0 290,153 1,284,464 471,996 1,462,742 484,899 1,475,391
8 52 0 470,819 0 0 277,430 1,274,684 510,418 1,505,364 527,363 1,522,141
9 53 0 494,360 0 0 264,440 1,264,440 551,859 1,551,859 573,835 1,573,835
10 54 0 519,078 0 0 253,739 1,253,739 602,637 1,602,637 630,995 1,630,995
11 55 0 545,032 0 0 242,839 1,242,839 659,018 1,659,018 696,165 1,696,165
12 56 0 572,283 0 0 231,235 1,231,235 720,566 1,720,566 768,188 1,768,188
13 57 0 600,897 0 0 218,936 1,218,936 787,836 1,787,836 847,813 1,847,813
14 58 0 630,942 0 0 205,831 1,205,831 861,316 1,861,316 935,233 1,935,233
15 59 0 662,489 0 0 191,811 1,191,811 941,546 1,941,546 1,031,172 2,038,214
16 60 0 695,614 0 0 176,768 1,176,768 1,029,123 2,029,123 1,136,239 2,183,852
17 61 0 730,394 0 0 160,594 1,160,594 1,124,711 2,124,711 1,251,275 2,339,634
18 62 0 766,914 0 0 143,184 1,143,184 1,229,042 2,236,734 1,376,905 2,505,830
19 63 0 805,260 0 0 124,195 1,124,195 1,342,573 2,379,308 1,514,720 2,684,387
20 64 0 845,523 0 0 103,645 1,103,645 1,466,095 2,531,653 1,665,966 2,876,790
21 65 0 887,799 0 0 81,198 1,081,198 1,600,052 2,693,687 1,835,788 3,090,548
22 66 0 932,189 0 0 56,754 1,056,754 1,745,223 2,866,354 2,022,772 3,322,201
23 67 0 978,798 0 0 30,101 1,030,101 1,902,429 3,050,164 2,228,561 3,573,052
24 68 0 1,027,738 0 0 1,027 1,001,027 2,072,578 3,245,656 2,454,628 3,843,947
25 69 0 1,079,125 0 0 0 0 2,256,803 3,454,262 2,702,730 4,136,798
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-9
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI CVAT DB2, Male, Preferred Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,449.81 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender ------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- -------- ---------- ---------- ---------- ----------
26 70 0 1,133,081 0 0 0 0 2,455,948 3,675,817 2,975,158 4,452,919
27 71 0 1,189,735 0 0 0 0 2,670,175 3,910,471 3,274,081 4,794,892
28 72 0 1,249,222 0 0 0 0 2,901,715 4,161,930 3,602,234 5,166,684
29 73 0 1,311,683 0 0 0 0 3,150,827 4,428,488 3,961,909 5,568,463
30 74 0 1,377,267 0 0 0 0 3,418,376 4,711,547 4,356,179 6,004,121
31 75 0 1,446,130 0 0 0 0 3,705,713 5,013,829 4,788,399 6,478,704
32 76 0 1,518,436 0 0 0 0 4,014,237 5,335,724 5,261,679 6,993,823
33 77 0 1,594,358 0 0 0 0 4,345,484 5,679,113 5,779,616 7,553,380
34 78 0 1,674,076 0 0 0 0 4,701,526 6,045,692 6,340,305 8,152,998
35 79 0 1,757,780 0 0 0 0 5,084,459 6,436,416 6,951,603 8,800,035
36 80 0 1,845,668 0 0 0 0 5,496,266 6,853,844 7,618,790 9,500,631
37 81 0 1,937,952 0 0 0 0 5,938,702 7,298,071 8,345,803 10,256,157
38 82 0 2,034,849 0 0 0 0 6,413,435 7,771,159 9,146,980 11,083,396
39 83 0 2,136,592 0 0 0 0 6,922,509 8,275,860 10,023,810 11,983,465
40 84 0 2,243,421 0 0 0 0 7,467,946 8,814,416 10,981,609 12,961,593
41 85 0 2,355,592 0 0 0 0 8,052,999 9,389,797 12,029,439 14,026,325
42 86 0 2,473,372 0 0 0 0 8,681,512 10,006,311 13,173,763 15,184,080
43 87 0 2,597,040 0 0 0 0 9,358,657 10,666,062 14,426,400 16,441,769
44 88 0 2,726,892 0 0 0 0 10,091,178 11,374,776 15,798,466 17,808,031
45 89 0 2,863,237 0 0 0 0 10,887,507 12,136,304 17,303,978 19,288,744
46 90 0 3,006,398 0 0 0 0 11,759,438 12,955,372 18,958,048 20,886,080
47 91 0 3,156,718 0 0 0 0 12,723,030 13,837,567 20,786,442 22,607,334
48 92 0 3,314,554 0 0 0 0 13,785,980 14,785,980 22,820,374 24,458,877
49 93 0 3,480,281 0 0 0 0 14,936,823 15,936,823 25,104,382 26,437,424
50 94 0 3,654,295 0 0 0 0 16,176,877 17,176,877 27,667,719 28,667,719
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-10
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI GPT DB1, Male, Non-smoker, Preferred, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $19,856.92 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- ------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 19,437 20,409 0 0 18,089 1,000,000 20,159 1,000,000 20,159 1,000,000
2 46 19,437 41,838 0 0 32,196 1,000,000 38,501 1,000,000 40,206 1,000,000
3 47 19,437 64,338 0 0 45,571 1,000,000 58,242 1,000,000 61,546 1,000,000
4 48 19,437 87,964 0 0 57,901 1,000,000 79,098 1,000,000 84,101 1,000,000
5 49 19,437 112,771 0 0 70,129 1,000,000 102,207 1,000,000 109,034 1,000,000
6 50 19,437 138,818 0 0 80,873 1,000,000 125,908 1,000,000 134,953 1,000,000
7 51 19,437 166,168 0 0 91,503 1,000,000 152,465 1,000,000 164,398 1,000,000
8 52 19,437 194,885 0 0 101,385 1,000,000 181,125 1,000,000 196,569 1,000,000
9 53 19,437 225,038 0 0 110,442 1,000,000 212,033 1,000,000 231,728 1,000,000
10 54 19,437 256,698 0 0 119,907 1,000,000 247,943 1,000,000 272,890 1,000,000
11 55 19,437 289,942 0 0 130,630 1,000,000 289,769 1,000,000 321,374 1,000,000
12 56 19,437 324,847 0 0 140,591 1,000,000 335,844 1,000,000 375,163 1,000,000
13 57 19,437 361,498 0 0 149,809 1,000,000 386,747 1,000,000 434,883 1,000,000
14 58 19,437 399,982 0 0 158,202 1,000,000 443,065 1,000,000 500,905 1,000,000
15 59 19,437 440,390 0 0 165,687 1,000,000 505,490 1,000,000 574,005 1,000,000
16 60 19,437 482,818 0 0 172,183 1,000,000 574,842 1,000,000 655,054 1,000,000
17 61 19,437 527,368 0 0 177,608 1,000,000 652,090 1,000,000 745,183 1,000,000
18 62 19,437 574,145 0 0 181,877 1,000,000 738,385 1,000,000 845,473 1,065,297
19 63 19,437 623,260 0 0 184,706 1,000,000 834,955 1,035,345 956,479 1,186,034
20 64 19,437 674,832 0 0 186,100 1,000,000 941,831 1,149,034 1,079,281 1,316,723
21 65 19,437 728,982 0 0 185,763 1,000,000 1,059,636 1,271,564 1,215,909 1,459,091
22 66 19,437 785,840 0 0 183,582 1,000,000 1,189,279 1,415,242 1,367,096 1,626,845
23 67 19,437 845,541 0 0 179,330 1,000,000 1,331,914 1,571,658 1,534,375 1,810,562
24 68 19,437 908,226 0 0 172,760 1,000,000 1,488,819 1,741,918 1,719,371 2,011,664
25 69 19,437 974,046 0 0 163,700 1,000,000 1,661,440 1,927,270 1,923,911 2,231,737
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-11
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI GPT DB1, Male, Non-smoker, Preferred Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $19,856.92 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
------------------------------------------ ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- ---------- ---------- ----------
26.. 70 19,437 1,043,157 0 0 151,644 1,000,000 1,851,288 2,128,981 2,150,095 2,472,609
27.. 71 19,437 1,115,724 0 0 135,520 1,000,000 2,060,679 2,328,567 2,400,581 2,712,656
28.. 72 19,437 1,191,919 0 0 115,595 1,000,000 2,292,214 2,544,358 2,678,183 2,972,783
29.. 73 19,437 1,271,923 0 0 90,518 1,000,000 2,548,450 2,777,811 2,985,958 3,254,694
30.. 74 19,437 1,355,928 0 0 59,173 1,000,000 2,832,572 3,030,853 3,327,505 3,560,431
31.. 75 19,437 1,444,133 0 0 20,579 1,000,000 3,148,465 3,305,888 3,706,946 3,892,293
32.. 76 19,437 1,536,748 0 0 0 0 3,496,079 3,670,883 4,126,646 4,332,978
33.. 77 19,437 1,633,994 0 0 0 0 3,878,371 4,072,289 4,590,726 4,820,262
34.. 78 19,437 1,736,102 0 0 0 0 4,298,586 4,513,515 5,102,870 5,358,013
35.. 79 19,437 1,843,316 0 0 0 0 4,760,191 4,998,200 5,668,395 5,951,814
36.. 80 19,437 1,955,890 0 0 0 0 5,266,857 5,530,199 6,292,702 6,607,336
37.. 81 19,437 2,074,093 0 0 0 0 5,822,379 6,113,498 6,981,345 7,330,412
38.. 82 19,437 2,198,207 0 0 0 0 6,430,684 6,752,218 7,742,294 8,129,408
39.. 83 19,437 2,328,525 0 0 0 0 7,095,914 7,450,709 8,581,615 9,010,695
40.. 84 19,437 2,465,360 0 0 0 0 7,822,288 8,213,402 9,506,438 9,981,759
41.. 85 19,437 2,609,037 0 0 0 0 8,614,399 9,045,119 10,525,176 11,051,434
42.. 86 19,437 2,759,897 0 0 0 0 9,477,083 9,950,937 11,645,999 12,228,298
43.. 87 19,437 2,918,300 0 0 0 0 10,415,426 10,936,196 12,878,828 13,522,768
44.. 88 19,437 3,084,624 0 0 0 0 11,434,914 12,006,659 14,233,690 14,945,374
45.. 89 19,437 3,259,263 0 0 0 0 12,541,066 13,168,119 15,721,505 16,507,579
46.. 90 19,437 3,442,635 0 0 0 0 13,739,566 14,426,544 17,352,840 18,220,481
47.. 91 19,437 3,635,175 0 0 0 0 15,075,574 15,678,596 19,166,283 19,932,934
48.. 92 19,437 3,837,343 0 0 0 0 16,572,601 17,069,778 21,187,756 21,823,388
49.. 93 19,437 4,049,618 0 0 0 0 18,259,496 18,624,686 23,447,971 23,916,930
50 94 19,437 4,272,508 0 0 0 0 20,172,231 20,373,953 25,983,662 26,243,498
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-12
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI GPT DB2, Male, Preferred, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $49,136.68 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 48,106 50,511 0 0 47,421 1,040,833 52,709 1,045,870 52,709 1,045,870
2 46 48,106 103,548 0 0 87,839 1,079,206 104,269 1,094,561 106,033 1,096,210
3 47 48,106 159,237 0 0 126,543 1,116,821 160,062 1,148,147 163,505 1,151,366
4 48 48,106 217,710 0 0 162,784 1,153,570 219,441 1,207,020 224,692 1,211,973
5 49 48,106 279,107 0 0 198,937 1,189,463 285,324 1,271,737 292,540 1,278,609
6 50 48,106 343,574 0 0 231,249 1,224,514 353,204 1,342,917 362,861 1,352,292
7 51 48,106 411,264 0 0 263,785 1,258,612 429,539 1,421,116 442,441 1,433,766
8 52 48,106 482,338 0 0 294,691 1,291,773 512,148 1,507,078 529,094 1,523,855
9 53 48,106 556,966 0 0 323,889 1,323,889 601,495 1,601,495 623,471 1,623,471
10 54 48,106 635,326 0 0 354,974 1,354,974 705,262 1,705,262 733,620 1,733,620
11 55 48,106 717,604 0 0 389,784 1,389,784 825,272 1,825,272 862,668 1,862,668
12 56 48,106 803,995 0 0 423,341 1,423,341 957,283 1,957,283 1,005,538 2,005,538
13 57 48,106 894,706 0 0 455,658 1,455,658 1,102,585 2,102,585 1,163,736 2,163,736
14 58 48,106 989,953 0 0 486,631 1,486,631 1,262,478 2,262,478 1,338,299 2,338,299
15 59 48,106 1,089,962 0 0 516,158 1,516,158 1,438,401 2,438,401 1,530,885 2,530,885
16 60 48,106 1,194,971 0 0 544,136 1,544,136 1,631,950 2,631,950 1,743,206 2,743,206
17 61 48,106 1,305,231 0 0 570,464 1,570,464 1,844,891 2,844,891 1,977,414 2,977,414
18 62 48,106 1,421,004 0 0 595,045 1,595,045 2,079,179 3,079,179 2,235,642 3,235,642
19 63 48,106 1,542,565 0 0 617,540 1,617,540 2,336,728 3,336,728 2,521,019 3,521,019
20 64 48,106 1,670,205 0 0 637,974 1,637,974 2,620,035 3,620,035 2,836,504 3,836,504
21 65 48,106 1,804,226 0 0 656,016 1,656,016 2,931,485 3,931,485 3,188,559 4,188,559
22 66 48,106 1,944,949 0 0 671,574 1,671,574 3,273,976 4,273,976 3,578,248 4,578,248
23 67 48,106 2,092,708 0 0 684,441 1,684,441 3,650,585 4,650,585 4,009,551 5,009,551
24 68 48,106 2,247,854 0 0 694,409 1,694,409 4,064,726 5,064,726 4,486,626 5,486,626
25 69 48,106 2,410,758 0 0 701,395 1,701,395 4,520,301 5,520,301 5,014,209 6,014,209
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-13
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
MI GPT DB2, Male, Preferred, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $49,136.68 UNDERWRITING CLASS: Fully Underwritten
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
------------------------------------------ ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- ---------- ------ --------- ---------- --------- ---------- ---------- ---------- ----------
26 70 48,106 2,581,807 0 0 704,957 1,704,957 5,021,253 6,021,253 5,597,810 6,597,810
27 71 48,106 2,761,409 0 0 704,064 1,704,064 5,571,313 6,571,313 6,243,285 7,243,285
28 72 48,106 2,949,990 0 0 699,365 1,699,365 6,176,391 7,176,391 6,957,382 7,957,382
29 73 48,106 3,148,001 0 0 689,714 1,689,714 6,841,126 7,841,126 7,747,078 8,747,078
30 74 48,106 3,355,912 0 0 674,455 1,674,455 7,571,165 8,571,165 8,620,491 9,620,491
31 75 48,106 3,574,219 0 0 653,297 1,653,297 8,373,140 9,373,140 9,586,624 10,586,624
32 76 48,106 3,803,441 0 0 625,836 1,625,836 9,254,271 10,254,271 10,655,083 11,655,083
33 77 48,106 4,044,124 0 0 591,669 1,591,669 10,222,550 11,222,550 11,836,647 12,836,647
34 78 48,106 4,296,842 0 0 550,639 1,550,639 11,287,085 12,287,085 13,139,841 14,139,841
35 79 48,106 4,562,195 0 0 502,352 1,502,352 12,457,707 13,457,707 14,579,964 15,579,964
36 80 48,106 4,840,816 0 0 446,180 1,446,180 13,745,047 14,745,047 16,171,950 17,171,950
37 81 48,106 5,133,368 0 0 381,025 1,381,025 15,160,372 16,160,372 17,931,219 18,931,219
38 82 48,106 5,440,547 0 0 305,564 1,305,564 16,715,907 17,715,907 19,880,335 20,880,335
39 83 48,106 5,763,086 0 0 218,611 1,218,611 18,425,313 19,425,313 22,033,666 23,135,348
40 84 48,106 6,101,751 0 0 118,752 1,118,752 20,303,384 21,318,552 24,406,374 25,626,692
41 85 48,106 6,457,350 0 0 5,190 1,005,190 22,356,983 23,474,831 27,020,025 28,371,025
42 86 48,106 6,830,728 0 0 0 0 24,593,526 25,823,201 29,895,574 31,390,351
43 87 48,106 7,222,776 0 0 0 0 27,026,197 28,377,505 33,058,475 34,711,397
44 88 48,106 7,634,425 0 0 0 0 29,669,219 31,152,679 36,534,455 38,361,176
45 89 48,106 8,066,657 0 0 0 0 32,536,897 34,163,740 40,351,523 42,369,097
46 90 48,106 8,520,501 0 0 0 0 35,643,964 37,426,160 44,536,789 46,763,627
47 91 48,106 8,997,037 0 0 0 0 39,107,552 40,671,853 49,189,278 51,156,847
48 92 48,106 9,497,400 0 0 0 0 42,988,633 44,278,291 54,375,493 56,006,757
49 93 48,106 10,022,781 0 0 0 0 47,328,580 48,328,580 60,174,240 61,377,723
50 94 48,106 10,574,431 0 0 0 0 52,100,263 53,100,263 66,615,241 67,615,241
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-14
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI CVAT DB1, Male, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,431.77 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 52,432 55,053 0 0 52,051 1,000,000 57,843 1,000,000 57,843 1,000,000
2 46 52,432 112,859 0 0 96,801 1,000,000 114,872 1,000,000 116,583 1,000,000
3 47 52,432 173,556 0 0 139,885 1,000,000 176,892 1,000,000 179,820 1,000,000
4 48 52,432 237,287 0 0 180,513 1,000,000 243,305 1,000,000 247,051 1,000,000
5 49 52,432 304,205 0 0 221,300 1,000,000 317,427 1,000,000 321,642 1,000,000
6 50 52,432 374,468 0 0 258,115 1,000,000 394,397 1,000,000 399,075 1,003,654
7 51 52,432 448,245 0 0 295,543 1,000,000 480,906 1,183,500 486,163 1,196,437
8 52 0 470,657 0 0 284,381 1,000,000 522,029 1,257,678 528,009 1,272,084
9 53 0 494,190 0 0 273,015 1,000,000 566,407 1,336,381 573,364 1,352,795
10 54 0 518,899 0 0 264,088 1,000,000 620,516 1,420,114 628,820 1,439,118
11 55 0 544,844 0 0 255,077 1,000,000 680,554 1,511,239 693,132 1,539,170
12 56 0 572,087 0 0 245,477 1,000,000 746,064 1,608,215 764,064 1,647,017
13 57 0 600,691 0 0 235,274 1,000,000 817,577 1,711,435 841,983 1,762,523
14 58 0 630,725 0 0 224,360 1,000,000 895,572 1,821,324 927,600 1,886,460
15 59 0 662,262 0 0 212,623 1,000,000 980,565 1,938,185 1,021,585 2,019,266
16 60 0 695,375 0 0 199,942 1,000,000 1,073,121 2,062,539 1,125,040 2,162,327
17 61 0 730,143 0 0 186,189 1,000,000 1,173,853 2,194,870 1,239,341 2,317,319
18 62 0 766,650 0 0 171,228 1,000,000 1,283,433 2,335,719 1,365,250 2,484,618
19 63 0 804,983 0 0 154,710 1,000,000 1,402,335 2,485,218 1,504,267 2,665,861
20 64 0 845,232 0 0 136,567 1,000,000 1,531,459 2,644,523 1,657,792 2,862,675
21 65 0 887,494 0 0 116,409 1,000,000 1,671,392 2,813,789 1,826,930 3,075,636
22 66 0 931,868 0 0 94,021 1,000,000 1,823,040 2,994,161 2,012,857 3,305,916
23 67 0 978,462 0 0 69,055 1,000,000 1,987,260 3,186,174 2,217,154 3,554,763
24 68 0 1,027,385 0 0 41,120 1,000,000 2,165,000 3,390,390 2,441,731 3,823,751
25 69 0 1,078,754 0 0 9,895 1,000,000 2,357,445 3,608,305 2,688,358 4,114,801
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-15
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI CVAT DB1, Male, Non-smoker, Age 45 TAX BRACKET %: 28% (ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,431.77 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender ------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- -------- ---------- ---------- ---------- ----------
26 70 0 1,132,692 0 0 0 0 2,565,475 3,839,746 2,959,337 4,429,240
27 71 0 1,189,326 0 0 0 0 2,789,260 4,084,871 3,257,034 4,769,926
28 72 0 1,248,792 0 0 0 0 3,031,131 4,347,550 3,583,851 5,140,317
29 73 0 1,311,232 0 0 0 0 3,291,357 4,626,003 3,942,842 5,541,664
30 74 0 1,376,793 0 0 0 0 3,570,843 4,921,693 4,337,184 5,977,941
31 75 0 1,445,633 0 0 0 0 3,871,000 5,237,463 4,769,945 6,453,735
32 76 0 1,517,915 0 0 0 0 4,193,289 5,573,720 5,244,924 6,971,553
33 77 0 1,593,810 0 0 0 0 4,539,316 5,932,432 5,766,097 7,535,713
34 78 0 1,673,501 0 0 0 0 4,911,243 6,315,368 6,338,085 8,150,143
35 79 0 1,757,176 0 0 0 0 5,311,261 6,723,526 6,965,611 8,817,767
36 80 0 1,845,034 0 0 0 0 5,741,443 7,159,579 7,654,098 9,544,660
37 81 0 1,937,286 0 0 0 0 6,203,619 7,623,627 8,409,644 10,334,611
38 82 0 2,034,150 0 0 0 0 6,699,533 8,117,824 9,239,007 11,194,904
39 83 0 2,135,858 0 0 0 0 7,231,321 8,645,044 10,149,652 12,133,910
40 84 0 2,242,650 0 0 0 0 7,801,094 9,207,631 11,149,859 13,160,178
41 85 0 2,354,783 0 0 0 0 8,412,250 9,808,684 12,248,373 14,281,603
42 86 0 2,472,522 0 0 0 0 9,068,806 10,452,706 13,454,894 15,508,111
43 87 0 2,596,148 0 0 0 0 9,776,164 11,141,895 14,780,818 16,845,699
44 88 0 2,725,955 0 0 0 0 10,541,368 11,882,230 16,239,107 18,304,721
45 89 0 2,862,253 0 0 0 0 11,373,227 12,677,736 17,845,273 19,892,125
46 90 0 3,005,365 0 0 0 0 12,284,061 13,533,349 19,617,829 21,612,961
47 91 0 3,155,633 0 0 0 0 13,290,646 14,454,907 21,580,579 23,471,037
48 92 0 3,313,415 0 0 0 0 14,417,669 15,452,857 23,763,006 25,469,190
49 93 0 3,479,085 0 0 0 0 15,703,782 16,537,653 26,205,442 27,596,950
50 94 0 3,653,039 0 0 0 0 17,211,577 17,727,924 28,964,160 29,833,084
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-16
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI CVAT DB2, Male, Non-smoker, Age 45 TAX BRACKET%: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,431.77 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
-- --- ------- --------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 52,432 55,053 0 0 51,976 1,044,782 57,759 1,050,290 57,759 1,050,290
2 46 52,432 112,859 0 0 96,383 1,086,931 114,369 1,103,741 116,269 1,105,517
3 47 52,432 173,556 0 0 138,934 1,128,272 175,655 1,162,591 178,978 1,165,696
4 48 52,432 237,287 0 0 178,817 1,168,695 240,920 1,227,283 245,232 1,231,351
5 49 52,432 304,205 0 0 218,624 1,208,214 313,358 1,298,436 318,213 1,303,060
6 50 52,432 374,468 0 0 254,245 1,246,840 388,034 1,376,732 393,432 1,381,972
7 51 52,432 448,245 0 0 290,155 1,284,466 472,057 1,462,801 478,225 1,468,848
8 52 0 470,657 0 0 277,433 1,274,686 510,483 1,505,429 517,622 1,512,497
9 53 0 494,190 0 0 264,442 1,264,442 551,931 1,551,931 560,381 1,560,381
10 54 0 518,899 0 0 253,741 1,253,741 602,716 1,602,716 612,947 1,612,947
11 55 0 544,844 0 0 242,841 1,242,841 659,106 1,659,106 674,497 1,674,497
12 56 0 572,087 0 0 231,237 1,231,237 720,664 1,720,664 742,506 1,742,506
13 57 0 600,691 0 0 218,938 1,218,938 787,944 1,787,944 817,298 1,817,298
14 58 0 630,725 0 0 205,833 1,205,833 861,436 1,861,436 899,612 1,899,612
15 59 0 662,262 0 0 191,813 1,191,813 941,678 1,941,678 990,141 1,990,141
16 60 0 695,375 0 0 176,770 1,176,770 1,029,270 2,029,270 1,090,036 2,095,050
17 61 0 730,143 0 0 160,596 1,160,596 1,124,874 2,124,874 1,200,638 2,244,952
18 62 0 766,650 0 0 143,186 1,143,186 1,229,222 2,237,062 1,322,594 2,406,989
19 63 0 804,983 0 0 124,197 1,124,197 1,342,772 2,379,660 1,457,264 2,582,564
20 64 0 845,232 0 0 103,648 1,103,648 1,466,313 2,532,029 1,605,990 2,773,223
21 65 0 887,494 0 0 81,200 1,081,200 1,600,290 2,694,088 1,769,840 2,979,525
22 66 0 931,868 0 0 56,756 1,056,756 1,745,482 2,866,780 1,949,953 3,202,603
23 67 0 978,462 0 0 30,103 1,030,103 1,902,712 3,050,618 2,147,863 3,443,669
24 68 0 1,027,385 0 0 1,029 1,001,029 2,072,886 3,246,139 2,365,419 3,704,246
25 69 0 1,078,754 0 0 0 0 2,257,138 3,454,776 2,604,335 3,986,195
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-17
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI CVAT DB2, Male, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: CVAT
ANNUAL PREMIUM: $52,431.77 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender ------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- -------- ---------- ---------- ---------- ----------
26 70 0 1,132,692 0 0 0 0 2,456,313 3,676,364 2,866,842 4,290,802
27 71 0 1,189,326 0 0 0 0 2,670,572 3,911,053 3,155,231 4,620,835
28 72 0 1,248,792 0 0 0 0 2,902,147 4,162,549 3,471,830 4,979,645
29 73 0 1,311,232 0 0 0 0 3,151,296 4,429,147 3,819,597 5,368,443
30 74 0 1,376,793 0 0 0 0 3,418,884 4,712,248 4,201,610 5,791,078
31 75 0 1,445,633 0 0 0 0 3,706,264 5,014,575 4,620,840 6,251,997
32 76 0 1,517,915 0 0 0 0 4,014,834 5,336,517 5,080,968 6,753,623
33 77 0 1,593,810 0 0 0 0 4,346,130 5,679,958 5,585,847 7,300,144
34 78 0 1,673,501 0 0 0 0 4,702,226 6,046,592 6,139,951 7,895,363
35 79 0 1,757,176 0 0 0 0 5,085,215 6,437,374 6,747,857 8,542,113
36 80 0 1,845,034 0 0 0 0 5,497,084 6,854,863 7,414,818 9,246,278
37 81 0 1,937,286 0 0 0 0 5,939,586 7,299,157 8,146,742 10,011,531
38 82 0 2,034,150 0 0 0 0 6,414,389 7,772,316 8,950,174 10,844,926
39 83 0 2,135,858 0 0 0 0 6,923,539 8,277,091 9,832,348 11,754,573
40 84 0 2,242,650 0 0 0 0 7,469,057 8,815,728 10,801,283 12,748,754
41 85 0 2,354,783 0 0 0 0 8,054,197 9,391,194 11,865,452 13,835,117
42 86 0 2,472,522 0 0 0 0 8,682,804 10,007,800 13,034,250 15,023,277
43 87 0 2,596,148 0 0 0 0 9,360,050 10,667,650 14,318,718 16,319,044
44 88 0 2,725,955 0 0 0 0 10,092,680 11,376,469 15,731,413 17,732,448
45 89 0 2,862,253 0 0 0 0 10,889,128 12,138,110 17,287,361 19,270,221
46 90 0 3,005,365 0 0 0 0 11,761,188 12,957,300 19,004,497 20,937,254
47 91 0 3,155,633 0 0 0 0 12,724,923 13,839,627 20,905,881 22,737,236
48 92 0 3,313,415 0 0 0 0 13,788,077 14,788,077 23,020,074 24,672,915
49 93 0 3,479,085 0 0 0 0 14,939,145 15,939,145 25,386,145 26,734,150
50 94 0 3,653,039 0 0 0 0 16,179,448 17,179,448 28,034,066 29,034,066
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-18
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI GPT DB1, Male, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $19,845.74 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- ------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 19,426 20,397 0 0 18,201 1,000,000 20,277 1,000,000 20,277 1,000,000
2 46 19,426 41,814 0 0 32,299 1,000,000 38,624 1,000,000 40,459 1,000,000
3 47 19,426 64,302 0 0 45,662 1,000,000 58,367 1,000,000 61,560 1,000,000
4 48 19,426 87,914 0 0 57,982 1,000,000 79,224 1,000,000 83,358 1,000,000
5 49 19,426 112,707 0 0 70,198 1,000,000 102,335 1,000,000 107,004 1,000,000
6 50 19,426 138,740 0 0 80,929 1,000,000 126,036 1,000,000 131,241 1,000,000
7 51 19,426 166,074 0 0 91,549 1,000,000 152,595 1,000,000 158,545 1,000,000
8 52 19,426 194,775 0 0 101,420 1,000,000 181,257 1,000,000 188,127 1,000,000
9 53 19,426 224,911 0 0 110,466 1,000,000 212,168 1,000,000 220,240 1,000,000
10 54 19,426 256,554 0 0 119,922 1,000,000 248,082 1,000,000 257,743 1,000,000
11 55 19,426 289,778 0 0 130,634 1,000,000 289,911 1,000,000 303,329 1,000,000
12 56 19,426 324,665 0 0 140,584 1,000,000 335,991 1,000,000 353,967 1,000,000
13 57 19,426 361,295 0 0 149,791 1,000,000 386,900 1,000,000 410,031 1,000,000
14 58 19,426 399,757 0 0 158,173 1,000,000 443,223 1,000,000 472,216 1,000,000
15 59 19,426 440,142 0 0 165,648 1,000,000 505,655 1,000,000 541,252 1,000,000
16 60 19,426 482,546 0 0 172,133 1,000,000 575,015 1,000,000 618,150 1,000,000
17 61 19,426 527,071 0 0 177,547 1,000,000 652,273 1,000,000 704,040 1,000,000
18 62 19,426 573,821 0 0 181,804 1,000,000 738,579 1,000,000 799,907 1,007,883
19 63 19,426 622,909 0 0 184,623 1,000,000 835,160 1,035,598 906,502 1,124,062
20 64 19,426 674,452 0 0 186,005 1,000,000 942,044 1,149,294 1,024,602 1,250,014
21 65 19,426 728,572 0 0 185,657 1,000,000 1,059,860 1,271,832 1,155,395 1,386,475
22 66 19,426 785,398 0 0 183,463 1,000,000 1,189,513 1,415,520 1,300,069 1,547,082
23 67 19,426 845,065 0 0 179,198 1,000,000 1,332,160 1,571,949 1,460,077 1,722,890
24 68 19,426 907,715 0 0 172,616 1,000,000 1,489,078 1,742,221 1,637,060 1,915,360
25 69 19,426 973,498 0 0 163,542 1,000,000 1,661,714 1,927,588 1,832,773 2,126,017
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-19
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI GPT DB1, Male, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $19,845.74 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 1 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
------------------------------------------ ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- ---------- ---------- ----------
26 70 19,426 1,042,570 0 0 151,471 1,000,000 1,851,578 2,129,315 2,049,233 2,356,617
27 71 19,426 1,115,096 0 0 135,331 1,000,000 2,060,987 2,328,915 2,289,019 2,586,592
28 72 19,426 1,191,247 0 0 115,389 1,000,000 2,292,541 2,544,721 2,554,759 2,835,783
29 73 19,426 1,271,207 0 0 90,293 1,000,000 2,548,799 2,778,191 2,849,497 3,105,952
30 74 19,426 1,355,164 0 0 58,927 1,000,000 2,832,945 3,031,252 3,176,658 3,399,024
31 75 19,426 1,443,320 0 0 20,310 1,000,000 3,148,865 3,306,308 3,540,099 3,717,104
32 76 19,426 1,535,883 0 0 0 0 3,496,509 3,671,334 3,942,252 4,139,364
33 77 19,426 1,633,074 0 0 0 0 3,878,833 4,072,774 4,387,134 4,606,490
34 78 19,426 1,735,125 0 0 0 0 4,299,084 4,514,038 4,879,189 5,123,148
35 79 19,426 1,842,278 0 0 0 0 4,760,727 4,998,763 5,423,247 5,694,409
36 80 19,426 1,954,789 0 0 0 0 5,267,436 5,530,808 6,024,637 6,325,869
37 81 19,426 2,072,926 0 0 0 0 5,823,005 6,114,155 6,689,207 7,023,667
38 82 19,426 2,196,969 0 0 0 0 6,431,362 6,752,929 7,423,373 7,794,541
39 83 19,426 2,327,215 0 0 0 0 7,096,647 7,451,479 8,234,165 8,645,873
40 84 19,426 2,463,972 0 0 0 0 7,823,082 8,214,236 9,129,289 9,585,753
41 85 19,426 2,607,568 0 0 0 0 8,615,261 9,046,023 10,117,055 10,622,907
42 86 19,426 2,758,344 0 0 0 0 9,478,017 9,951,917 11,206,517 11,766,843
43 87 19,426 2,916,658 0 0 0 0 10,416,438 10,937,259 12,407,600 13,027,979
44 88 19,426 3,082,888 0 0 0 0 11,436,011 12,007,811 13,731,110 14,417,665
45 89 19,426 3,257,429 0 0 0 0 12,542,255 13,169,367 15,188,897 15,948,341
46 90 19,426 3,440,698 0 0 0 0 13,740,856 14,427,898 16,793,769 17,633,457
47 91 19,426 3,633,130 0 0 0 0 15,076,975 15,680,053 18,577,266 19,320,356
48 92 19,426 3,835,183 0 0 0 0 16,574,127 17,071,351 20,562,856 21,179,741
49 93 19,426 4,047,340 0 0 0 0 18,261,164 18,626,387 22,778,008 23,233,568
50 94 19,426 4,270,104 0 0 0 0 20,174,059 20,375,800 25,254,688 25,507,235
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-20
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI GPT DB2, Male, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $49,127.76 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
----------------------------------------- ----------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- -------------------- ----------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- --------- ------ --------- ---------- --------- ---------- --------- ---------- ---------
1 45 48,097 50,502 0 0 47,537 1,040,944 52,833 1,045,988 52,833 1,045,988
2 46 48,097 103,529 0 0 87,948 1,079,308 104,399 1,094,683 106,299 1,096,459
3 47 48,097 159,208 0 0 126,642 1,116,914 160,197 1,148,274 163,519 1,151,379
4 48 48,097 217,671 0 0 162,873 1,153,654 219,580 1,207,151 223,891 1,211,218
5 49 48,097 279,056 0 0 199,016 1,189,539 285,466 1,271,873 290,322 1,276,497
6 50 48,097 343,511 0 0 231,317 1,224,580 353,350 1,343,059 358,748 1,348,299
7 51 48,097 411,189 0 0 263,844 1,258,670 429,690 1,421,264 435,859 1,427,312
8 52 48,097 482,251 0 0 294,740 1,291,822 512,305 1,507,233 519,444 1,514,301
9 53 48,097 556,865 0 0 323,930 1,323,930 601,658 1,601,658 610,107 1,610,107
10 54 48,097 635,211 0 0 355,006 1,355,006 705,433 1,705,433 715,664 1,715,664
11 55 48,097 717,473 0 0 389,808 1,389,808 825,452 1,825,452 841,093 1,841,093
12 56 48,097 803,849 0 0 423,356 1,423,356 957,474 1,957,474 979,949 1,979,949
13 57 48,097 894,544 0 0 455,664 1,455,664 1,102,786 2,102,786 1,133,314 2,133,314
14 58 48,097 989,773 0 0 486,629 1,486,629 1,262,691 2,262,691 1,302,772 2,302,772
15 59 48,097 1,089,764 0 0 516,147 1,516,147 1,438,627 2,438,627 1,489,949 2,489,949
16 60 48,097 1,194,754 0 0 544,116 1,544,116 1,632,191 2,632,191 1,697,034 2,697,034
17 61 48,097 1,304,994 0 0 570,437 1,570,437 1,845,149 2,845,149 1,926,577 2,926,577
18 62 48,097 1,420,746 0 0 595,009 1,595,009 2,079,455 3,079,455 2,180,648 3,180,648
19 63 48,097 1,542,286 0 0 617,496 1,617,496 2,337,024 3,337,024 2,462,177 3,462,177
20 64 48,097 1,669,902 0 0 637,923 1,637,923 2,620,353 3,620,353 2,774,156 3,774,156
21 65 48,097 1,803,899 0 0 655,957 1,655,957 2,931,828 3,931,828 3,119,528 4,119,528
22 66 48,097 1,944,596 0 0 671,507 1,671,507 3,274,346 4,274,346 3,501,552 4,501,552
23 67 48,097 2,092,328 0 0 684,366 1,684,366 3,650,986 4,650,986 3,924,100 4,924,100
24 68 48,097 2,247,447 0 0 694,326 1,694,326 4,065,160 5,065,160 4,391,590 5,391,590
25 69 48,097 2,410,321 0 0 701,305 1,701,305 4,520,772 5,520,772 4,908,672 5,908,672
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-21
LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
Flexible Premium Variable Life to Age 95
COMPLIANCE REPORT
GI GPT DB2, Male, Non-smoker, Age 45 TAX BRACKET %: 28%(ee)/40%(er)
INITIAL TARGET DEATH BENEFIT: $1,000,000 LOAN INTEREST RATE: 4.6% in arrears
INITIAL SPECIFIED AMOUNT: $1,000,000 DEFINITION OF LIFE INSURANCE: GPT
ANNUAL PREMIUM: $49,127.76 UNDERWRITING CLASS: Guaranteed Issue
INITIAL DEATH BENEFIT OPTION: Option 2 Enhanced Cash Value Benefit*
Guaranteed Policy Charges Current Policy Charges
------------------------------------------ ---------------------
Hypothetical Rates of Return
Partial 0.00% (-0.76% Net) 12.00% (11.24% Net) 12.00% (11.24% Net)
Net Premium Surrender -------------------- --------------------- ---------------------
Policy AGE Premium Accum. Annual fr Insur Surrender* Death Surrender* Death Surrender* Death
YR BOY Outlay @ 5% Loan Policy Value Proceeds Value Proceeds Value Proceeds
- ------ --- ------- ---------- ------ --------- ---------- --------- ---------- ---------- ---------- ----------
26 70 48,097 2,581,339 0 0 704,859 1,704,859 5,021,765 6,021,765 5,480,753 6,480,753
27 71 48,097 2,760,908 0 0 703,959 1,703,959 5,571,870 6,571,870 6,113,705 7,113,705
28 72 48,097 2,949,455 0 0 699,253 1,699,253 6,176,999 7,176,999 6,813,914 7,813,914
29 73 48,097 3,147,430 0 0 689,594 1,689,594 6,841,790 7,841,790 7,588,714 8,588,714
30 74 48,097 3,355,303 0 0 674,328 1,674,328 7,571,890 8,571,890 8,446,115 9,446,115
31 75 48,097 3,573,570 0 0 653,164 1,653,164 8,373,934 9,373,934 9,394,744 10,394,744
32 76 48,097 3,802,751 0 0 625,695 1,625,695 9,255,140 10,255,140 10,444,425 11,444,425
33 77 48,097 4,043,390 0 0 591,522 1,591,522 10,223,503 11,223,503 11,605,924 12,605,924
34 78 48,097 4,296,062 0 0 550,485 1,550,485 11,288,131 12,288,131 12,891,311 13,891,311
35 79 48,097 4,561,367 0 0 502,191 1,502,191 12,458,855 13,458,855 14,313,716 15,313,716
36 80 48,097 4,839,937 0 0 446,013 1,446,013 13,746,309 14,746,309 15,887,831 16,887,831
37 81 48,097 5,132,435 0 0 380,851 1,380,851 15,161,761 16,161,761 17,629,946 18,629,946
38 82 48,097 5,439,559 0 0 305,384 1,305,384 16,717,435 17,717,435 19,558,133 20,558,133
39 83 48,097 5,762,039 0 0 218,424 1,218,424 18,426,995 19,426,995 21,690,934 22,775,479
40 84 48,097 6,100,643 0 0 118,559 1,118,559 20,305,237 21,320,498 24,045,717 25,248,002
41 85 48,097 6,456,177 0 0 4,991 1,004,991 22,359,009 23,476,958 26,644,207 27,976,416
42 86 48,097 6,829,487 0 0 0 0 24,595,740 25,825,526 29,510,220 30,985,730
43 87 48,097 7,221,463 0 0 0 0 27,028,616 28,380,045 32,669,860 34,303,351
44 88 48,097 7,633,038 0 0 0 0 29,671,861 31,155,452 36,151,556 37,959,132
45 89 48,097 8,065,192 0 0 0 0 32,539,780 34,166,767 39,986,480 41,985,802
46 90 48,097 8,518,953 0 0 0 0 35,647,108 37,429,461 44,208,322 46,418,736
47 91 48,097 8,995,402 0 0 0 0 39,110,988 40,675,426 48,900,079 50,856,081
48 92 48,097 9,495,674 0 0 0 0 42,992,395 44,282,166 54,123,496 55,747,199
49 93 48,097 10,020,959 0 0 0 0 47,332,737 48,332,737 59,950,839 61,149,855
50 94 48,097 10,572,509 0 0 0 0 52,104,856 53,104,856 66,421,318 67,421,318
- ----------
*The Surrender Value in policy years 1 through 8 reflects any applicable
Enhanced Cash Surrender Value.
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender
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 representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained
over any period of time.
The current charges (monthly mortality & expense, cost of insurance, issue
charge, maintenance charge, and any applicable rider charges) are declared by
MONY Life Insurance Company, are guaranteed for the first policy year, and
apply to policies issued as of the preparation date shown. After the first
policy year, current charges are not guaranteed, and may be changed at the
discretion of MONY Life Insurance Company.
G-22
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 Amended and Restated By-Laws of MONY Life Insurance Company ("MONY")
provide, in Article XV as follows:
Each person (and the heirs, executors and administrators of such person)
made or threatened to be made a party to any action, civil or criminal, by
reason of being or having been a director, officer, or employee of the
corporation (or by reason of serving any other organization at the request
of the corporation) shall be indemnified to the extent permitted by the law
of the State of New York and in the manner prescribed therein. To this end,
and as authorized by Section 722 of the Business Corporation Law of the
State of New York, the Board may adopt all resolutions, authorize all
agreements and take all actions with respect to the indemnification of
directors and officers, and the advance payment of their expenses in
connection therewith.
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
The Registrant and MONY Life Insurance Company 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.
II-1
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The Facing Sheet.
Cross-Reference to items required by Form N-8B-2.
Prospectus
The Undertaking to file reports.
The signatures.
Written consents of the following persons:
a.Pricewaterhouse Coopers, 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 Trustees of The Mutual Life Insurance
Company of New York authorizing establishment of MONY Variable
Account L, filed as Exhibit 1 (1) to Pre-Effective Amendment No. 1 to
Registration Statement on Form S-6, dated December 17, 1990
(Registration Nos. 33-37719 and 811-6217), is incorporated herein by
reference.
(2)Not applicable.
(3) (a)Underwriting Agreement between The Mutual Life Insurance Company
of New York, MONY Series Fund, Inc., and MONY Securities Corp.,
filed as Exhibit 1 (3) (a) to Registration Statement on Form S-6,
dated November 9, 1990 (Registration Nos. 33-37719 and 811-6217),
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 is filed herewith as Exhibit 1.(3)(c).
(4)Not applicable.
(5)Form of policy is incorporated herein by reference to Pre-Effective
Amendment No. 2 to the Registration Statement on Form S-6
(Registration Nos. 333-40554 and 811-06217) filed on October 11, 2002.
(6)Amended and Restated Charter and Amended and Restated By-Laws of MONY
Life Insurance Company, filed as Exhibit 1.(6) to Registration
Statement dated January 29, 1999 on Form S-6 (Registration Nos.
333-71417 and 811-6217) is incorporated herein by reference.
(7)Not applicable.
(8) (a)Not applicable.
(b)Amended Investment Advisory Agreement between MONY Life Insurance
Company of America and MONY Series Fund, Inc. filed as Exhibit
5(i) to Post-Effective amendment No. 14 to Registration Statement
(Registration Nos. 2-95501 and 811-4209) dated February 27, 1998,
is incorporated herein by reference.
II-2
(c)Services Agreement between The Mutual Life Insurance Company of
New York and MONY Life Insurance Company of America filed as
Exhibit 5(ii) to Pre-Effective Amendment to Registration
Statement (Registration Nos. 2-95501 and 811-4209) dated July 19,
1985, is incorporated herein by reference.
(d)Fund Participation Agreement among Enterprise Accumulation Trust,
MONY Life Insurance Company of America and MONY Life Insurance
Company, filed as Exhibit 8(a) to Post-Effective Amendment No. 7
to Registration Statement on Form N-4 dated April 18, 2001
(Registration Nos. 333-72259 and 811-6216), is incorporated
herein by reference.
(e)Participation Agreement among The Alger American Fund, Fred Alger
& Company, Incorporated, and MONY Life Insurance Company filed as
Exhibit (8) (b) to Pre-Effective Amendment No. 1 to Registration
Statement (Registration Nos. 333-92320 and 811-06216) dated
September 17, 2002 is incorporated herein by reference.
(f)Fund Participation Agreement among INVESCO Variable Investment
Funds, Inc., INVESCO Funds Group, Inc., INVESCO Distributors,
Inc. and MONY Life Insurance Company filed as Exhibit (8) (c) to
Pre-Effective Amendment No. 1 to Registration Statement
(Registration Nos. 333-92320 and 811-06216) dated September 17,
2002 is incorporated herein by reference.
(g)Fund Participation Agreement between Janus Aspen Series and MONY
Life Insurance Company filed as Exhibit (8) (d) to Pre-Effective
Amendment No. 1 to Registration Statement (Registration Nos.
333-92320 and 811-06216) dated September 17, 2002 is incorporated
herein by reference.
(h)Fund Participation Agreement among Lord Abbett Series Fund, Inc.,
Lord Abbett Distributor LLC and MONY Life Insurance Company filed
as Exhibit (8) (e) to Pre-Effective Amendment No. 1 to
Registration Statement (Registration Nos. 333-92320 and
811-06216) dated September 17, 2002 is incorporated herein by
reference.
(i)Participation Agreement among MFS Variable Insurance Trust,
Massachusetts Financial Services Company and MONY Life Insurance
Company filed as Exhibit (8) (f) to Pre-Effective Amendment No. 1
to Registration Statement (Registration Nos. 333-92320 and
811-06216) dated September 17, 2002 is incorporated herein by
reference.
(j)Participation Agreement among PIMCO Variable Insurance Trust,
PIMCO Funds Distributors LLC and MONY Life Insurance Company
filed as Exhibit (8) (h) to Pre-Effective Amendment No. 1 to
Registration Statement (Registration Nos. 333-92320 and
811-06216) dated September 17, 2002 is incorporated herein by
reference.
(k)Participation Agreement among The Universal Institutional Funds,
Inc., Morgan Stanley Dean Witter Investment Management, Inc.,
Miller Anderson & Sherrerd, LLP and MONY Life Insurance Company
filed as Exhibit (8) (i) to Pre-Effective Amendment No. 1 to
Registration Statement (Registration Nos. 333-92320 and
811-06216) dated September 17, 2002 is incorporated herein by
reference.
(l)Fund Participation Agreement between MONY Life Insurance Company
and Variable Insurance Products Fund and Fidelity Distributors
Corporation is incorporated herein by reference to Pre-Effective
Amendment No. 2 to the Registration Statement on Form S-6
(Registration Nos. 333-40554 and 811-06217) filed on October 11,
2002.
(m)Fund Participation Agreement between MONY Life Insurance Company
and Variable Insurance Products Fund II and Fidelity Distributors
Corporation is incorporated herein by reference to Pre-Effective
Amendment No. 2 to the Registration Statement on Form S-6
(Registration Nos. 333-40554 and 811-06217) filed on October 11,
2002.
II-3
(n)Fund Participation Agreement between MONY Life Insurance Company
and Variable Insurance Products Fund III and Fidelity
Distributors Corporation is incorporated herein by reference to
Pre-Effective Amendment No. 2 to the Registration Statement on
Form S-6 (Registration Nos. 333-40554 and 811-06217) filed on
October 11, 2002.
(o)Participation Agreement between MONY Life Insurance Company and
T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income
Series, Inc. T. Rowe Price International Series, Inc. and T. Rowe
Price Investment Services, Inc. is incorporated herein by
reference to Pre-Effective Amendment No. 2 to the Registration
Statement on Form S-6 (Registration Nos. 333-40554 and 811-06217)
filed on October 11, 2002.
(p)Fund Participation Agreement between MONY Life Insurance Company
and Dreyfus Variable Investment Fund to be filed by amendment.
(q)Participation Agreement between MONY Life Insurance Company and
Vanguard Variable Insurance Fund to be filed by amendment.
(9)Not applicable.
(10)Application Form for Flexible Premium Variable Universal Life
Insurance Policy is incorporated herein by reference to Pre-Effective
Amendment No. 2 to the Registration Statement on Form S-6
(Registration Nos. 333-40554 and 811-06217) filed on October 11, 2002.
(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 Frederick C. Tedeschi, Vice President and Chief
Counsel -- Operations, MONY Life Insurance Company, as to legality of the
securities being registered filed as Exhibit 2 to Pre-Effective Amendment No. 1
to Registration Statement (Registration Nos. 333-40554 and 811-06217) dated
November 9, 2000.
3. Not applicable.
4. Not applicable.
5. Consent of PricewaterhouseCoopers LLP as to financial statements of MONY
Life Insurance Company.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
MONY Variable Account L, has duly caused Pre-Effective Amendment No. 4 to this
Registration Statement to be signed on its behalf by the undersigned thereunto
duly authorized, in the City of New York, State of New York, on this 7th day of
November, 2002. Registrant hereby certifies that the requirements of Rule 485
have been met.
MONY VARIABLE ACCOUNT L OF
MONY LIFE INSURANCE COMPANY
*
By:___________________________________
Michael I. Roth, Director,
Chairman of
the Board, and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, Pre-Effective
Amendment No. 4 to this Registration Statement has been signed below by the
following persons in the capacities and on the date indicated.
Signature Title Date
--------- ----- ----
* Director, Chairman of the Board, November 7, 2002
----------------- and Chief Executive Officer
Michael I. Roth
* Director, President, and Chief November 7, 2002
----------------- Operating Officer
Samuel J. Foti
* Director and Executive Vice November 7, 2002
----------------- President
Kenneth M. Levine
* Executive Vice President and November 7, 2002
----------------- Chief Financial Officer
Richard Daddario
* Senior Vice President and Chief November 7, 2002
----------------- Actuary
Michael Slipowitz
/s/ LEE M. SMITH Corporate Secretary and Vice November 7, 2002
----------------- President, Government Relations
Lee M. Smith
* Director November 7, 2002
-----------------
Tom H. Barrett
* Director November 7, 2002
-----------------
David L. Call
* Director November 7, 2002
-----------------
G. Robert Durham
* Director November 7, 2002
-----------------
James B. Farley
Signature Title Date
--------- ----- ----
* Director November 7, 2002
------------------------------
Robert Holland, Jr.
* Director November 7, 2002
------------------------------
James L. Johnson
* Director November 7, 2002
------------------------------
Frederick W. Kanner
* Director November 7, 2002
------------------------------
Robert R. Kiley
* Director November 7, 2002
------------------------------
Jane C. Pfeiffer
* Director November 7, 2002
------------------------------
Thomas C. Theobald
* Director November 7, 2002
------------------------------
David M. Thomas
/s/ LEE M. SMITH November 7, 2002
*By: _________________________
Lee M. Smith, Attorney-in-Fact
Lee M. Smith as Attorney-in-Fact for Michael I. Roth, Samuel J. Foti,
Kenneth M. Levine, Richard Daddario, Michael Slipowitz, Tom H. Barrett,
David L. Call, G. Robert Durham, James B. Farley, Robert Holland, Jr., James
L. Johnson, Frederick W. Kanner, Robert R. Kiley, Jane C. Pfeiffer, Thomas
C. Theobald, David M. Thomas.
2
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
1.(3)(c) Commission Schedule
5. Consent of PricewaterhouseCoopers LLP, Independent Accountants