-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DCyXOoReYbFDVc20X56HXg6a5lDC0MIiYetw2YGwSov1ghYKeF+yRMxK/PAbA8bh kTr/XGH2g0Jk2wCOwDrYDQ== 0001209286-03-000045.txt : 20030320 0001209286-03-000045.hdr.sgml : 20030320 20030320141746 ACCESSION NUMBER: 0001209286-03-000045 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 9 FILED AS OF DATE: 20030320 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE CO CENTRAL INDEX KEY: 0001052863 IRS NUMBER: 741472662 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-45343 FILM NUMBER: 03610354 BUSINESS ADDRESS: STREET 1: USAA BUILDING STREET 2: 9800 FREDERICKBURG RD CITY: SAN ANTONIO STATE: TX ZIP: 78288 BUSINESS PHONE: 2104988000 MAIL ADDRESS: STREET 1: USAA BUILDING STREET 2: 9800 FREDERICKSBURG RD CITY: SAN ANTONIO STATE: TX ZIP: 78288 485APOS 1 e29912.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-6 Registration Nos. 333-45343 811-08625 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-6 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ] Pre-Effective Amendment No. [ ] Post-Effective Amendment No. 7 [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT ACT OF 1940 [ ] Amendment No. 2 [X] LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY --------------------------------- (Exact Name of Registrant) USAA LIFE INSURANCE COMPANY --------------------------------- (Name of Depositor) 9800 Fredericksburg Road, A-1-E San Antonio, Texas 78288-4501 (Address of Depositor's Principal Executive Offices)(Zip Code) Depositor's Telephone Number: (210) 498-8000 Name and Address of Agent for Please send copies of all Service: communications to: Cynthia A. Toles, Esq. Diane E. Ambler, Esq. USAA Life Insurance Company Kirkpatrick & Lockhart LLP 9800 Fredericksburg Road, A-1-E 1800 Massachusetts Ave, NW San Antonio, Texas 78288-4501 Washington. D.C. 20036 It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [ ] on (date) pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [X] on May 1, 2003 pursuant to paragraph (a)(1) 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 and Amount of Securities Being Registered: An Indefinite Amount of Interests in Life Insurance Separate Account of USAA Life Insurance Company Under Variable Universal Life Insurance Policies. VARIABLE UNIVERSAL LIFE INSURANCE POLICY PROSPECTUS MAY 1, 2003 Offered by: USAA LIFE INSURANCE COMPANY Telephone: Toll-Free 1-800-531-2923 This prospectus describes a Variable Universal Life Insurance Policy ("Policy") that we are offering, through our Life Insurance Separate Account, to individual members of the United Services Automobile Association ("USAA"), the parent company of the USAA Group of Companies, as well as to the general public. The Policy offers: o Life insurance protection guaranteed by USAA Life Insurance Company ("USAA Life") (See "Payment of Policy Benefits") o Flexible premium payments (See "Premium Payments") o 18 investment options (See "Investment Options" and the Fund prospectuses for a description of the Funds) USAA LIFE INVESTMENT TRUST -------------------------- USAA Life Growth and Income Fund USAA Life Aggressive Growth Fund USAA Life World Growth Fund USAA Life Diversified Assets Fund USAA Life Income Fund VANGUARD(R) VARIABLE INSURANCE FUND ----------------------------------- Vanguard Diversified Value Portfolio Vanguard Equity Index Portfolio Vanguard Mid-Cap Index Portfolio Vanguard Small Company Growth Portfolio Vanguard International Portfolio Vanguard REIT Index Portfolio Vanguard High Yield Bond Portfolio Vanguard Money Market Portfolio FIDELITY(R)VARIABLE INSURANCE PRODUCTS -------------------------------------- Fidelity VIP Contrafund(R) Portfolio, Initial Class Fidelity VIP Equity-Income Portfolio, Initial Class Fidelity VIPs Dynamic Capital Appreciation Portfolio, Initial Class SCUDDER VARIABLE SERIES I -------------------------- Scudder VS I Capital Growth Portfolio, Class A Shares THE ALGER AMERICAN FUND ----------------------- Alger American Growth Portfolio PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE. YOUR PROSPECTUS AND POLICY MAY REFLECT VARIATIONS REQUIRED BY THE LAWS OF YOUR STATE. DEFINED TERMS USED IN THIS PROSPECTUS APPEAR AT THE END OF THIS BOOKLET. FOR MORE INFORMATION, REQUEST A COPY OF THE STATEMENT OF ADDITIONAL INFORMATION ("SAI"), DATED MAY 1, 2003. THE TABLE OF CONTENTS OF THE SAI APPEARS ON PAGE 38 OF THIS PROSPECTUS. FREE COPIES OF THE PROSPECTUS, ANNUAL REPORT OR SEMI-ANNUAL REPORT FOR EACH OF THE FUNDS ARE AVAILABLE BY CALLING 1-800-531-2923. IMPORTANT NOTICES: o THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR DISAPPROVED THE SECURITIES DESCRIBED IN THIS PROSPECTUS OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANYONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. o YOU MAY CANCEL THE POLICY WITHIN 10 DAYS AFTER RECEIVING IT, OR SUCH LONGER PERIOD AS THE LAWS OF YOUR STATE MAY REQUIRE. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE VUL Policy - 1 TABLE OF CONTENTS POLICY SUMMARY............................................................... 4 POLICY BENEFITS........................................................... 4 --------------- TYPE OF LIFE INSURANCE................................................. 4 PURCHASING A POLICY.................................................... 4 INSURANCE PROTECTION OFFERED BY THE POLICY............................. 4 PERSONALIZED ILLUSTRATIONS............................................. 4 FREE LOOK/RIGHT TO EXAMINE............................................. 4 FLEXIBLE PREMIUM PAYMENTS.............................................. 5 INVESTMENT OPTIONS..................................................... 5 Separate Account................................................... 5 Investment Choices................................................. 5 Transfers Among Investment Options................................. 5 ALLOCATING CASH VALUE.................................................. 5 TRACKING CASH VALUE.................................................... 5 ACCESSING YOUR CASH VALUE.............................................. 5 Full Surrender..................................................... 6 Partial Surrender.................................................. 6 Loan............................................................... 6 POLICY RISKS.............................................................. 6 ------------ CASH VALUE AND INVESTMENT EXPERIENCE................................... 6 TRANSACTION RISKS...................................................... 6 RISKS OF INVESTMENT OPTIONS............................................ 6 LAPSE RISK............................................................. 6 TAX RISKS.............................................................. 7 FEE TABLES................................................................ 7 ---------- TRANSACTION FEES....................................................... 7 PERIODIC CHARGES OTHER THAN FUND OPERATING EXPENSES.................... 7 OPTIONAL RIDER CHARGES................................................. 8 TOTAL ANNUAL FUND OPERATING EXPENSES................................... 8 POLICY INFORMATION........................................................... 10 WHO MAY PURCHASE A POLICY AND HOW TO PURCHASE A POLICY................. 10 EFFECTIVE DATE......................................................... 10 PREMIUM PAYMENTS....................................................... 10 Methods of Payment................................................. 10 Amount and Frequency of Payments................................... 10 Premium Allocation................................................. 11 Planned Periodic Premium Payments.................................. 11 Annual Target Premium Payment...................................... 11 INVESTMENT OPTIONS..................................................... 11 Additions or Changes to Investment Options......................... 11 Voting Privileges.................................................. 12 POLICY LAPSE AND REINSTATEMENT......................................... 19 Lapse.............................................................. 19 Grace Period....................................................... 19 Guaranteed Death Benefit........................................... 19 Reinstatement...................................................... 20 CHARGES AND DEDUCTIONS................................................. 20 Premium Charge..................................................... 20 Monthly Deductions from Cash Value................................. 20
VUL Policy - 2 Separate Account Charges........................................... 21 Transfer Charges................................................... 21 Surrender Charges.................................................. 21 Other Charges...................................................... 22 Deduction of Charges............................................... 22 DEATH BENEFIT.......................................................... 22 Changing Death Benefit Option...................................... 22 Changing Policy's Specified Amount................................. 23 OPTIONAL INSURANCE BENEFITS............................................ 23 PAYMENT OF POLICY BENEFITS............................................. 24 Benefits at Maturity............................................... 24 Payment at Death................................................... 24 Death Benefit Payment Options...................................... 25 CASH VALUE............................................................. 25 Calculating Your Value in the Variable Fund Accounts............... 26 Transfer of Value.................................................. 26 LOANS.................................................................. 27 Loan Collateral.................................................... 27 Loan Interest...................................................... 27 Repayment of Indebtedness.......................................... 27 Effect of Policy Loans............................................. 27 SURRENDERS............................................................. 28 Full Surrenders.................................................... 28 Partial Surrenders................................................. 28 TELEPHONE TRANSACTIONS................................................. 28 DOLLAR COST AVERAGING PROGRAM.......................................... 28 POSTPONEMENT OF PAYMENTS............................................... 29 MORE POLICY INFORMATION...................................................... 29 OWNERS AND BENEFICIARIES............................................... 29 Owners............................................................. 29 Beneficiaries...................................................... 30 CALCULATING YOUR COST OF INSURANCE..................................... 30 Net Amount at Risk................................................. 30 Net Amount at Risk-More Than One Rate Class........................ 30 Cost of Insurance Rates............................................ 31 MINIMUM AMOUNT INSURED................................................. 31 OTHER INFORMATION............................................................ 31 USAA LIFE.............................................................. 31 SEPARATE ACCOUNT....................................................... 32 TAX MATTERS............................................................ 32 Taxation of Policy Proceeds........................................ 32 Taxation of USAA Life.............................................. 35 LEGAL PROCEEDINGS...................................................... 35 FINANCIAL STATEMENTS................................................... 35 DEFINITIONS.................................................................. 36 STATEMENT OF ADDITIONAL INFORMATION.......................................... 39
VUL Policy 3 POLICY SUMMARY This summary describes the Policy's benefits and risks. Please read the remainder of this Prospectus for further details. The glossary at the end of the Prospectus defines certain terms used in this Prospectus. POLICY BENEFITS - ---------------- TYPE OF LIFE INSURANCE - ---------------------- The Policy is a flexible premium variable life insurance policy. "Flexible Premium" gives you the flexibility to vary the amount and frequency of your premium payments, within certain limits. The Policy is called "Variable" life insurance because your Cash Value, your cost of insurance charges, and your life insurance (death) benefits can vary according to your investment in one or more Variable Fund Accounts. Your investment experience in the Variable Fund Accounts may be positive or negative. THE POLICY HAS NO MINIMUM GUARANTEED CASH VALUE, WHICH MEANS YOU BEAR THE ENTIRE INVESTMENT RISK THAT YOUR CASH VALUE COULD DECLINE TO ZERO. PURCHASING A POLICY - ------------------- Call us at 1-800-531-2923. USAA's Life Insurance Company's licensed insurance representatives can help you complete an application and guide you through the "underwriting" process, which normally involves a medical exam. o We will issue you a Policy, provided you meet requirements for insurability. o The minimum amount of insurance available is $100,000 ($25,000 if the Insured is less than 18 years of age). o We will not issue a Policy that insures a person older than age 80. o We reserve the right to reject an application for any reason. o Insurance coverage under your Policy begins on its Effective Date. INSURANCE PROTECTION OFFERED BY THE POLICY - ------------------------------------------ The Policy offers insurance protection as either a level death benefit option or an increasing death benefit option as shown below. OPTION A (LEVEL DEATH BENEFIT) OPTION B (INCREASING DEATH BENEFIT) ------------------------------ ----------------------------------- Death Benefit Greater of: Death Benefit Greater of: o Your Policy's Specified o Your Policy's Specified Amount Amount, or PLUS the Cash Value, or o The Minimum Amount Insured o The Minimum Amount Insured See "Death Benefit" for more detailed information. As long as the Policy remains in effect, under either option, the death benefit will never be less than the Policy's Specified Amount, less any Indebtedness and any due and unpaid Monthly Deductions. In addition, you can add optional insurance death benefits to a Policy by rider (see "Other Policy Benefits - Optional Insurance Benefits"). PERSONALIZED ILLUSTRATIONS - -------------------------- Upon request and at no charge, we will provide a personalized illustration showing Insured's age, sex and rate class. If applicable and requested, an illustration for a Policy not affected by sex of the Insured will be provided. To receive a personalized illustration, please contact us at 1-800-531-4265. "FREE LOOK"/RIGHT TO EXAMINE - ---------------------------- You may cancel the Policy within 10 days after receiving it, or later, as required by law. Initial Net Premium Payments allocated to any of the Variable Fund Accounts will be invested in the Vanguard Money Market Portfolio Variable Fund Account during the 10-day "Free Look" period plus 5 calendar days. Should you elect to cancel the Policy, return it to us with your written request for cancellation and we will refund the greater of: o your premium payments, or o the value of the Variable Fund Accounts as of the date of receipt of your request plus any premium charge, monthly deduction, and mortality and expense charge that we deducted. FLEXIBLE PREMIUM PAYMENTS - ------------------------- Within certain limits, you have the flexibility to determine the amount and timing of your premium payments to reflect your changing financial conditions or objectives. We generally require a minimum initial premium to issue a Policy, but we do not impose a minimum on your subsequent premium payments. You must maintain sufficient Cash Value to keep your Policy in effect, which may require you to make additional unscheduled premium payments. You can request a periodic premium schedule to suit your needs when applying for a Policy and we will bill you for these amounts, if you wish; however, you are not required to follow this schedule. INVESTMENT OPTIONS - ------------------ SEPARATE ACCOUNT The Separate Account is a segregated asset account of USAA Life that supports the Policy's variable life insurance benefits. The Separate Account consists of 18 Variable Fund Accounts, each of which invests in a corresponding Fund. INVESTMENT CHOICES Through the Separate Account, you may invest in up to 18 Variable Fund Accounts, each of which invests exclusively in a corresponding Fund of o the USAA Life Investment Trust ("Trust"), o the Vanguard(R) Variable Insurance Fund ("Vanguard Fund"), o the Fidelity(R) Variable Insurance Products ("Fidelity Funds"), o the Scudder Variable Series I ("Scudder Series"), or o the Alger American Fund ("Alger Fund"). TRANSFERS AMONG INVESTMENT OPTIONS You may transfer value among the Variable Fund Accounts up to 18 times per Policy Year without charge. Transfers under the Dollar Cost Averaging Program are free and do not count against the limit. o Additional transfers in a Policy Year are subject to a $25 transfer charge. o You may authorize transfers by telephone or by written notice. o Transfers must be at least $250, or the remaining value in the Variable Fund Account, if less. o We reserve the right at any time, without prior notice, to terminate, suspend or modify these transfer privileges. ALLOCATING CASH VALUE - --------------------- o Specify on your Policy application how much of your Net Premium Payment to apply to each Variable Fund Account. o After the Free Look Period, we will allocate your Net Premium Payments in accordance with these instructions until you direct otherwise. o Change future allocations at any time by telephone or by written notice. o Allocations can be as small as 1/10th of one percent. TRACKING CASH VALUE - ------------------- We will mail you periodic reports regarding your Policy and the Separate Account. In addition, log on to USAA.COM or call the USAA TOUCHLINE(R) at 1-800-531-5433 to find information about: o Policy details o Variable Fund Account summaries o Financial activity You will need a USAA Member Number and USAA PIN to access USAA.COM or USAA TOUCHLINE(R) information. You can also use your Social Security Number to access USAA TOUCHLINE(R) information. ACCESSING YOUR CASH VALUE - ------------------------- Access your Cash Value through full or partial surrenders or Policy loans. VUL Policy 5 FULL SURRENDER At any time while your Policy is in force, you may request to surrender the Policy and receive the Policy's Cash Surrender Value. Cash Surrender Value is the Policy Cash Value less the Surrender Charge, if any, payable on full surrender of your Policy. A full surrender may have tax consequences. (See "Tax Matters") A full surrender terminates the Policy. PARTIAL SURRENDER At any time while your policy is in force, you may request to withdraw part of the Policy's Cash Value. An administrative charge equal to the lesser of $25 or 2% of the amount withdrawn will apply. Your Policy's remaining Cash Value, after a partial surrender, may not be less than an amount equal to the then current surrender charge for a full surrender. A partial surrender will reduce your death benefit. A partial surrender may have tax consequences. (See "Tax Matters") LOAN You may borrow from your Policy at any time after the first Policy Year. The Policy is used as security for the loan. The maximum loan amount is 85% of the Cash Value which would be available for a full surrender. We charge you interest, in advance, at a maximum annual interest rate of 6% (4.5% for preferred loans). Lower rates may be available. If loans are not repaid, they will reduce the Policy's death benefit. A loan may have tax consequences. (See "Tax Matters") POLICY RISKS - ------------ The Policy is a long-term investment designed to provide significant life insurance benefits. You should consider the Policy in conjunction with other insurance you own. It may be to your advantage to replace existing insurance with the Policy. The Policy should be purchased only if you have the financial ability to keep it in force for a substantial period of time. You should not purchase the Policy if you intend to surrender all or part of the Policy Cash Value in the near future. THE POLICY IS DESIGNED TO MEET LONG-TERM FINANCIAL GOALS. IT IS NOT SUITABLE AS A SHORT-TERM INVESTMENT. CASH VALUE AND INVESTMENT EXPERIENCE - ------------------------------------ o Your Policy's Cash Value may change daily to reflect the investment experience of the Variable Fund Accounts. o Your Policy's Cash Value also will reflect the amount and frequency of premium payments, partial surrenders of Cash Value, Policy loans and the charges and deductions connected with the Policy. o Your Policy has no minimum guaranteed Cash Value, which means you bear the entire investment risk that your Cash Value could decline to zero (see "Cash Value"). TRANSACTION RISKS - ----------------- There are risks associated with surrenders, withdrawals, and loans. These risks arise from the charges associated with those transactions, as well as their effect on the Policy. You should consider the following carefully: o A surrender charge applies for 10 Policy Years after the Policy Date. It is possible you will receive no net cash surrender value if you surrender your Policy in the first few Policy years. o You should not purchase the Policy if you intend to surrender all or part of the policy account value in the near future. o You should purchase the Policy only if you have the financial ability to keep it in force for a substantial period of time. RISKS OF INVESTMENT OPTIONS - --------------------------- A COMPREHENSIVE DISCUSSION OF THE RISKS OF EACH FUND MAY BE FOUND IN EACH FUND'S PROSPECTUS. PLEASE REFER TO THE FUNDS' PROSPECTUSES FOR MORE INFORMATION. LAPSE RISK - ---------- If the Cash Value can no longer cover the Policy's Monthly Deduction and any loan interest due, the Policy will lapse and a grace period will begin, unless you have paid enough premiums to qualify for the Guaranteed Death Benefit (see "Guaranteed Death Benefit"). During the grace period, you must pay the necessary premium. If you do not pay the necessary premium before the grace period ends, the Policy will terminate without value, ending all insurance coverage, including any benefits provided by rider. VUL Policy 6 If partial surrenders, loans, and charges reduce the Cash Value to too low an amount and/or if the investment experience in your selected Variable Fund Accounts is unfavorable, there is a risk that the Policy could lapse. After termination, you may reinstate the Policy within five years, subject to certain conditions. TAX RISKS - --------- WE DO NOT INTEND THIS DISCUSSION TO BE TAX ADVICE. YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISOR BEFORE PURCHASING A POLICY (SEE "TAX MATTERS"). This Policy is intended to meet the definition of a "life insurance contract" under federal tax law. The Policy's death benefit should be fully excludable from the Beneficiary's gross income if paid due to the death of the Insured. Any earnings on your investment in a Variable Fund Account should not be taxable to you while the Policy is in effect unless you receive a full or partial surrender of the Policy's Cash Value. Federal tax law limits premium payments relative to your Policy's Specified Amount in order for the Policy to meet the definition of life insurance. If the premiums you pay exceed these limits, the Policy will be treated as a modified endowment contract ("MEC") and federal tax law may impose penalties on amounts you take out of your Policy, whether as withdrawals, surrenders, or loans. We monitor your premium payments to help assure that you do not exceed permitted amounts or inadvertently incur any tax penalties due to excess premium payments. FEE TABLES - ---------- The following tables describe the fees and charges that you will pay when buying, owning, and surrendering the Policy. The first table describes the fees and charges that you will pay at the time you buy the Policy, surrender the Policy, or transfer Cash Value between investment options.
- -------------------------------------------------------------------------------------------------------------- TRANSACTION FEES - -------------------------------------------------------------------------------------------------------------- CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED - -------------------------------------------------------------------------------------------------------------- Maximum Charge Imposed on Each premium payment until the 3% of premium paid Premiums amount paid totals 10 Annual Target Premium Payments(1) - -------------------------------------------------------------------------------------------------------------- Maximum Deferred Sales Charge On surrender of Policy Maximum of 50% of Annual Target Premium Payment(2) - -------------------------------------------------------------------------------------------------------------- Partial Surrender On partial surrender of Policy Lesser of $25 or 2% of amount withdrawn - -------------------------------------------------------------------------------------------------------------- Transfer Fees Applied, after the 18th transfer in $25 per transfer(3) each Policy Year, to each transfer. - --------------------------------------------------------------------------------------------------------------
(1) An increase or decrease in the Policy's Specified Amount will result in a new Annual Target Premium Payment. (2) Declines by 5% each Policy Year to 0% after the 10th Policy Year. (3) We reserve the right at any time, and without prior notice, to terminate, suspend or modify transfer privileges under the Policy. The next table describes the fees and charges that you will pay periodically during the time that you own the Policy, not including Fund operating expenses.
- --------------------------------------------------------------------------------------------------------------------------- PERIODIC CHARGES OTHER THAN FUND OPERATING EXPENSES - --------------------------------------------------------------------------------------------------------------------------- CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED - --------------------------------------------------------------------------------------------------------------------------- Cost of Insurance(4) Policy's Effective Date, and each Monthly (per $1,000 of net amount at risk) Anniversary thereafter - --------------------------------------------------------------------------------------------------------------------------- o Minimum and Maximum $0.03 - $83.33 per Charge $1,000 of Net Amount at Risk - --------------------------------------------------------------------------------------------------------------------------- o Charge for 34 year old male in $.062 per $1,000 of Net preferred rate class in the Amount at Risk first policy year - ---------------------------------------------------------------------------------------------------------------------------
VUL Policy 7
- --------------------------------------------------------------------------------------------------------------------------- PERIODIC CHARGES OTHER THAN FUND OPERATING EXPENSES - --------------------------------------------------------------------------------------------------------------------------- CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED - --------------------------------------------------------------------------------------------------------------------------- Maintenance Charge Policy's Effective Date, and each Monthly $5 Anniversary thereafter - --------------------------------------------------------------------------------------------------------------------------- Mortality and Expense Charge(5) Daily Annualized rate of .75% of average net assets of each Variable Fund Account - --------------------------------------------------------------------------------------------------------------------------- Administrative Charge Policy's Effective Date, and each Monthly $10 Anniversary thereafter during the first Policy Year - --------------------------------------------------------------------------------------------------------------------------- Federal Income Tax Charge None(6) - ---------------------------------------------------------------------------------------------------------------------------
(4) The cost of insurance charge for an Insured depends on the age, sex, and rate class of the Insured. (See "Calculating Your Cost of Insurance.") The cost of insurance charge shown in the table may not be representative of the charge that a particular Policy owner will pay. (5) We deduct the Mortality and Expense Charge on a daily basis at an annual rate of .75% of the average net assets of each Variable Fund Account. (6) Currently, we make no charge for federal income taxes that may be attributable to the Separate Account. We may, however, make such a charge in the future, should it be necessary. We also may make charges for other taxes, if any, attributable to the Separate Account. NOTE: Riders offer additional benefits to go with your Policy. Not all riders - ---- are available in all states.
- --------------------------------------------------------------------------------------------------------------------------- OPTIONAL RIDER CHARGES - --------------------------------------------------------------------------------------------------------------------------- CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED - --------------------------------------------------------------------------------------------------------------------------- Accidental Death Benefit Rider Later of the Policy's Effective Date or the $.07 per $1,000 coverage rider's effective date, and each Monthly Anniversary thereafter - --------------------------------------------------------------------------------------------------------------------------- Children Term Life Insurance Rider Later of the Policy's Effective Date or the $.50 per $1,000 coverage rider's effective date, and each Monthly Anniversary thereafter - --------------------------------------------------------------------------------------------------------------------------- Extended Maturity Date Rider Not applicable None - --------------------------------------------------------------------------------------------------------------------------- Terminal Illness Rider Not applicable None - --------------------------------------------------------------------------------------------------------------------------- Waiver of Monthly Deduction Rider Later of the Policy's Effective Date or the Depends on the age of the rider's effective date, and each Monthly insured Anniversary thereafter - ---------------------------------------------------------------------------------------------------------------------------
The next table shows the minimum and maximum total operating expenses charged by the Funds that you will pay periodically during the time that you own the Policy. More detail concerning each Fund's fees and expenses is contained in the prospectus for each Fund.
- --------------------------------------------------------------------------------------------------------------------------- TOTAL ANNUAL FUND OPERATING EXPENSES MINIMUM MAXIMUM - --------------------------------------------------------------------------------------------------------------------------- (expenses that are deducted from Fund assets, including management fees .18% 2.64% and other expenses) - --------------------------------------------------------------------------------------------------------------------------- After Waiver and Reimbursement of Expenses(7) .18% 1.50% - ---------------------------------------------------------------------------------------------------------------------------
(7) Some of the Funds, including the Funds of the USAA Life Investment Trust, may be subject to expense reimbursement arrangements that have the effect of reducing expenses actually paid by those Funds. The table which follows sets forth the operating expenses of each Fund and includes information about any contractual expense reimbursement arrangements in place to reduce Fund expenses, including the periods for which the arrangements will continue. The next table shows the operating expenses (before and after waiver or reimbursement) charged by each Fund for the fiscal year ended December 31, 2002. VUL Policy 8
- ----------------------------------------------------------------------- ----------------------------------------- TOTAL FUND TOTAL FUND OTHER EXPENSES OPERATING VARIABLE FUND MANAGEMENT OTHER OPERATING AFTER EXPENSES AFTER ACCOUNT FEES EXPENSES EXPENSES REIMBURSEMENT REIMBURSEMENT - ---------------------------------------------------------------------- ----------------------------------------- USAA LIFE INVESTMENT TRUST(8),(9) - ----------------------------------------------------------------------- ----------------------------------------- Growth and Income .20 .26 .46 .26 .46 - ----------------------------------------------------------------------- ----------------------------------------- Aggressive Growth .50 .68 1.18 .45 .95 - ----------------------------------------------------------------------- ----------------------------------------- World Growth .35 1.30 1.65 .60 .95 - ----------------------------------------------------------------------- ----------------------------------------- Diversified Assets .20 .38 .58 .38 .58 - ----------------------------------------------------------------------- ----------------------------------------- Income .20 .51 .71 .45 .65 - ----------------------------------------------------------------------- ----------------------------------------- VANGUARD(R) VARIABLE INSURANCE FUND - ----------------------------------------------------------------------- ----------------------------------------- Diversified Value Portfolio .46 .04 .50 N/A .50 - ----------------------------------------------------------------------- ----------------------------------------- Equity Index Portfolio .16 .02 .18 N/A .18 - ----------------------------------------------------------------------- ----------------------------------------- Mid-Cap Index Portfolio .24 .06 .30 N/A .30 - ----------------------------------------------------------------------- ----------------------------------------- Small Company Growth Portfolio .54 .03 .57 N/A .57 - ----------------------------------------------------------------------- ----------------------------------------- International Portfolio .42 .11 .53 N/A .53 - ----------------------------------------------------------------------- ----------------------------------------- REIT Index Portfolio .34 .05 .39 N/A .39 - ----------------------------------------------------------------------- ----------------------------------------- High Yield Bond Portfolio .30 .03 .33 N/A .33 - ----------------------------------------------------------------------- ----------------------------------------- Money Market Portfolio .18 .03 .21 N/A .21 - ----------------------------------------------------------------------- ----------------------------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS - ----------------------------------------------------------------------- ----------------------------------------- Contrafund(R) Portfolio, Initial Class .58 .10 .68 N/A N/A - ----------------------------------------------------------------------- ----------------------------------------- Equity-Income Portfolio, Initial Class .48 .09 .57 N/A N/A - ----------------------------------------------------------------------- ----------------------------------------- Dynamic Capital Appreciation Portfolio, Initial Class(10) .58 2.06 2.64 .92 1.50 - ----------------------------------------------------------------------- -----------------------------------------
VUL Policy 9
- ----------------------------------------------------------------------- ----------------------------------------- TOTAL FUND TOTAL FUND OTHER EXPENSES OPERATING VARIABLE FUND MANAGEMENT OTHER OPERATING AFTER EXPENSES AFTER ACCOUNT FEES EXPENSES EXPENSES REIMBURSEMENT REIMBURSEMENT - ---------------------------------------------------------------------- ----------------------------------------- SCUDDER VARIABLE SERIES I Capital Growth Portfolio, Class A Shares .47 .04 .51 .04 .51 - ---------------------------------------------------------------------- ----------------------------------------- ALGER AMERICAN FUND - ---------------------------------------------------------------------- ----------------------------------------- Growth Portfolio .75 .10 .85 .10 .85 - ---------------------------------------------------------------------- ----------------------------------------- - ---------------------------------------------------------------------- -----------------------------------------
(8) Until at least May 1, 2004, USAA Life, out of its general account, must limit Fund expenses of the USAA Life Investment Trust Funds, excluding fee offset arrangements, and reimburse the Funds for all expenses in excess of, on an annual basis, .95% of the average net assets of the Aggressive Growth and World Growth Funds, .75% of the average net assets of the Diversified Assets Fund, .65% of the average net assets of the Income Fund, and .60% of the average net assets of the Growth & Income Fund. (9) A portion of the brokerage commissions that the funds pay may be reimbursed and used to reduce the funds' expenses. In addition, through fee offset arrangements with the funds' custodian, credits, if any, realized as a result of uninvested cash balances are used to reduce custodian expenses. Total fund operating expenses reflect total expenses excluding any custodian fee offset arrangement, which reduced the total expenses of the Aggressive Growth Fund, the World Growth Fund, and the Income Fund by .01%, and had no impact on the total expenses of the Growth and Income Fund and Diversified Assets Fund. (10) The Fund's manager has voluntarily agreed to reimburse the class to the extent that total operating expenses (excluding interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses) exceed 1.50%. This arrangement can be discontinued by the fund's manager at any time. POLICY INFORMATION WHO MAY PURCHASE A POLICY AND HOW TO PURCHASE A POLICY - ------------------------------------------------------ o Complete an application and submit it, with your initial premium payment (if required), to our Home Office. o You are required to provide us with satisfactory evidence of your insurability as part of the "underwriting" process. o During the underwriting process, you will be asked to complete a medical examination in order to assign you to an underwriting class used to determine your cost of insurance charges. o After completion of the underwriting process, we will notify you of our decision regarding your application. o We will not issue a Policy to insure a person older than age 80. EFFECTIVE DATE - -------------- o If the first premium is submitted with the application, the Effective Date will ordinarily be the date the application is approved and the Policy is issued. o Insurance coverage begins on the Policy's Effective Date which is shown on the Policy Information Page. o You must pay the first premium before the Policy becomes effective. PREMIUM PAYMENTS - ---------------- METHODS OF PAYMENT o We accept premium payments by check or money order drawn on a U.S. bank in U.S. dollars and made payable to "USAA Life Insurance Company" or "USAA Life". o We accept premium payments made by bank draft, wire, or exchange from another insurance company. o Premium payments must be sent directly to our Home Office. o You may use our Automatic Payment Plan to have monthly premium payments automatically deducted from your bank account. VUL Policy 10 AMOUNT AND FREQUENCY OF PAYMENTS o As long as you maintain sufficient Cash Value, you have flexibility to determine amount and frequency of premium payments. o Initial Premium Payment - To issue a Policy, you are required to provide us with an initial premium payment equal to at least one full Planned Periodic Premium Payment specified in your Policy. (If you select the Automatic Payment Plan, your initial premium payment would equal 2 monthly payments under the Plan.) o Minimum and Maximum Premium Payments - Except for the initial premium payment, we do not require any minimum premium. However, you must maintain enough Cash Value to cover policy charges or the Policy will lapse. In addition, for the Policy to qualify as a life insurance contract for federal tax purposes, the total amount of your premium payments may not exceed the maximum amount allowed by federal tax law, unless necessary to prevent lapse. If a premium payment would cause you to exceed that maximum amount, we will refund the excess premium payment to you. (See "Tax Matters.") PREMIUM ALLOCATION On your application, you must specify the allocation of Net Premium Payments to each selected Variable Fund Account. You can specify allocations in increments as small as 1/10th of one percent. The total amount of your allocations must equal 100%. During the application process, we will hold your initial premium payment in our general account (without interest). If a policy is not issued, we will return your premium. Once your application is in good order, we will credit your initial net premium to the Policy as of the date the Policy is issued. There is a "Free Look" period during which we will allocate your initial Net Premium Payment and any subsequent Net Premium received during the "Free Look" period to the Vanguard Money Market Portfolio Variable Fund Account. The Net Premium will remain in the Vanguard Money Market Portfolio Variable Fund Account for the "Free Look" period plus five days. As of the end of the Valuation Preiod on the Valuation Date immediately following the end of that period, we will allocate the initial Net Premium Payment, together with any subsequent Net Premium Payments that have been made, plus any earnings, among the Variable Fund Accounts in the percentages directed on the application. We will allocate these amounts at the Accumulation Unit Value next computed on that date. (See "Calculating Your Value in the Variable Fund Accounts.") You may change your fund allocations at any time by telephone or by written notice. There are no charges or fees for changing your allocation instructions. The allocation change will become effective with the first premium payment we receive on or following the Date of Receipt of your request. (See "Transfer of Value") PLANNED PERIODIC PREMIUM PAYMENTS You may choose to make planned periodic premium payments. For convenience, we will also set up a schedule of premium payments and will send you premium notices at quarterly, semiannual or annual intervals. To facilitate planned periodic premium payments, we also will accept monthly premium payments through our Automatic Payment Plan. You are not obligated to follow the schedule of planned periodic premium payments, and failing to do so will not itself cause your Policy to lapse. Conversely, following the schedule will not guarantee that your Policy will remain in effect, unless you have made enough premium payments to qualify for the Guaranteed Death Benefit (see "Guaranteed Death Benefit"). ANNUAL TARGET PREMIUM PAYMENT We will use the Annual Target Premium Payment specified in your Policy to determine whether we will deduct a premium charge from your premium payments or a surrender charge if you fully surrender. (See "Premium Charge" and "Surrender Charge" under "Charges and Deductions.") We also will use the Annual Target Premium Payment to determine whether the Guaranteed Death Benefit applies. (See "Guaranteed Death Benefit" under "Lapse and Reinstatement.") We determine the Annual Target Premium Payment actuarially based on the age, sex and rate class of the Insured, and the insurance benefits contained in the Policy. INVESTMENT OPTIONS - ------------------ Currently, you may invest in up to 18 Funds through the Separate Account. You can invest in a Fund by allocating Net Premium Payments to the corresponding Variable Fund Account. The Funds are managed by professional money managers as shown in the chart below that provides a brief description of each Fund. For more information, including a discussion of potential investment and other risks, please refer to the prospectuses for the Funds. ADDITIONS OR CHANGES TO INVESTMENT OPTIONS In the future, additional Funds may be made available as investment options through corresponding Variable Fund Accounts. For example, we may add Funds if we believe investment or marketing conditions warrant. We reserve the right, subject to compliance with applicable law, to change the Funds available as investment options. For VUL Policy 11 example, we may eliminate or merge one or more Funds or substitute the shares of a Fund for those of another fund. We may do so, in our sole discretion, if we determine further investment in any Fund would be inconsistent with the purposes of the Policies. We will give you written notice of the addition, elimination, merger, or substitution of any Fund to the extent required by law. In the event of a substitution or other change, we may, by appropriate endorsement, make any changes in your Policy and any future policies as may be necessary or appropriate to reflect the substitution or change, operate the Separate Account as a management company, deregister it with the SEC in the event such registration is no longer required, or combine it with other USAA Life separate accounts. VOTING PRIVILEGES Based on our present view of the law, we will vote the shares of the Funds we hold directly or indirectly through the Separate Account in accordance with instructions received from Owners entitled to give such instructions. We will determine the persons entitled to give voting instructions and the number of shares a person has a right to instruct based on Variable Fund Account Values as of the record date of the meeting. We will vote shares attributable to Policies for which we have not received instructions, as well as shares attributable to us, in the same proportion as we vote shares for which we have received instructions, unless we determine, based on SEC rules or other authority, that we may vote such shares ourselves in our own discretion.
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- LARGE-CAP VALUE FUNDS - ----------------------------------------------------------------------------------------------------------------------------- FIDELITY VIP EQUITY-INCOME o Normally invests at least 80% of May be appropriate for investors PORTFOLIO INITIAL CLASS total assets in income-producing who are willing to ride out stock equity securities, which tends to market fluctuations in pursuit of Objective: lead to investments in large cap potentially above-average long-term - ---------- "value" stocks. returns. Designed for those who Reasonable income. The Fund will o Potentially invests in other types want some income from equity and also consider the potential for capital of equity securities and debt bond securities, but also want to be appreciation. The Fund's goal is to securities, including lower-quality invested in the stock market for its achieve a yield which exceeds the debt securities. long-term growth potential composite yield on the securities o Invests in domestic and foreign comprising the S&P 500(R) Index issuers. o Uses fundamental analysis of Adviser: each issuer's financial condition - -------- and industry position and market Fidelity Management & Research and economic conditions to select Company investments. 82 Devonshire Street Boston, Massachusetts 02109 - ----------------------------------------------------------------------------------------------------------------------------- USAA LIFE GROWTH & INCOME FUND o Invests primarily in equity Designed for the investor seeking to Objective: securities that show the best benefit from long-term growth of - ---------- potential for total return through a capital and return. Because the Fund Primary: Capital growth combination of capital emphasizes investments in common Secondary: Current income appreciation and income. stocks, its value will fluctuate based o Investments in convertible on market conditions. Adviser: securities is limited to 5% of Consequently, the Fund should not - -------- assets. May invest in be relied upon for short-term USAA Investment Management nonconvertible debt securities and financial needs or short-term Company preferred stock. investment in the stock market. 9800 Fredericksburg Road o While most of the Fund's assets San Antonio, Texas 78288 will be invested in U.S. securities, we may also invest up to 20% of Subadviser: the Fund's total assets in foreign - ----------- securities purchased in either Wellington Management Co., LLP foreign or U.S. markets. These 75 State Street foreign holdings may include Boston, MA 02109 securities issued in emerging markets as well as securities issued in established markets. - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 12
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- LARGE-CAP GROWTH FUNDS - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD DIVERSIFIED VALUE o Invests primarily in common May be suitable investment for you PORTFOLIO stocks of large and medium-size if: (1) you wish to add a stock fund Objective: companies whose stocks are to your existing holdings, which - ---------- considered by the adviser to be could include other stock Long-term growth of capital and a undervalued and out of favor with investments as well as bond and moderate level of dividend income investors. Such "value" stocks money market investments; (2) you typically have above-average want a stock fund employing a value Adviser: dividend yields and/or below- approach in seeking long-term - ------- average prices in relation to such growth in capital as well as Barrow, Hanley, Mewhinney & financial measures as earnings, moderate level of dividend income. Strauss, Inc. book value, and cash flow. One McKinney Plaza 3232 McKinney Ave, 15th Floor Dallas, Texas 75204 - ----------------------------------------------------------------------------------------------------------------------------- ALGER AMERICAN GROWTH PORTFOLIO o Invests primarily in equity May be appropriate for investors Objective: securities, such as common or seeking long-term capital - ---------- preferred stocks, which are listed appreciation. Long-term capital appreciation on U.S. exchanges or in the over- the-counter market. Adviser: o The Portfolio invests primarily in - -------- "growth" stocks. Fred Alger Management, Inc. o Under normal circumstances, the 30 Montgomery Street Portfolio invests primarily in the Jersey City, New Jersey 07302 equity securities of large companies with a market capitalization of $1 billion or greater. - ----------------------------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND(R) o Normally invests primarily in May be appropriate for investors PORTFOLIO, INITIAL CLASS common stocks who are willing to ride out stock Objective: o Invests in securities of companies market fluctuations in pursuit of - ---------- whose value it believes is not potentially above-average long-term Long-term capital appreciation fully recognized by the public. returns. o Invests in domestic and foreign Adviser: issuers. - -------- o Invests in either "growth" stocks Fidelity Management & Research or "value" stocks or both. Company o Uses fundamental analysis of 82 Devonshire Street each issuer's financial condition Boston, Massachusetts 02109 and industry position and market and economic conditions to select investments. - ----------------------------------------------------------------------------------------------------------------------------- LARGE-CAP BLEND FUNDS - ----------------------------------------------------------------------------------------------------------------------------- SCUDDER VS I CAPITAL GROWTH o Invests at least 65% of total assets May be appropriate for investors PORTFOLIO, CLASS A SHARES in common stocks of U.S. seeking long-term growth. Objective: companies. - ---------- o Although the Portfolio can invest Maximize long-term capital growth in companies of any size, it through a broad and flexible generally focuses on established investment program. companies that are similar in size to the companies in the S&P 500 Adviser: Index. The Portfolio intends to - -------- invest primarily in companies Deutsche Investment Management whose market capitalizations fall Americas, Inc. within the normal range of the 345 Park Avenue Index. New York, New York - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 13
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- LARGE-CAP BLEND FUNDS - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD EQUITY INDEX PORTFOLIO o Employs a "passively" managed- May be a suitable investment for Objective: or index-approach, by holding all you if: (1) you wish to add a low- - ---------- of the stocks in the Standard & cost, large-capitalization stock index Long-term growth of capital and Poor's 500 Composite Stock fund to your existing holdings, income by attempting to match the Price Index in roughly the same which could include other stock performance of a broad-based proportion to their weighting in investments as well as bond and market index of stocks of large U.S. the index. money market investments; (2) you companies. o Stocks represented in the Index, want the potential for long-term and thus the Portfolio's holding, capital appreciation, with a moderate Adviser: are weighted according to each level of dividend income. - -------- stock's market capitalization The Vanguard Group (shares outstanding x share price). P.O. Box 2600 For example, if a specific stock Valley Forge, Pennsylvania 19482 represented 2% of the S&P 500 Index, the Portfolio would invest 2% of its assets in that company. - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD MID-CAP INDEX PORTFOLIO o Employs a "passively" managed- May be a suitable investment for Objective: or index-approach by holding the you if: (1) you wish to add a low- - ---------- stocks in the Standard & Poor's cost, mid-capitalization stock index Long-term growth of capital by MidCap 400 Index in roughly the fund to your existing holdings, attempting to match the performance same proportion to their which could include other stock of a broad-based market index of weighting in the Index. investments as well as bond and stocks of medium-size U.S. o Stocks represented in the Index, money market investments; (2) you companies. and thus the Portfolio's holdings, want the potential for long-term are weighted according to each capital appreciation. Adviser: stock's market capitalization. For - -------- example, if a specific stock The Vanguard Group represented 5% of the S&P P.O. Box 2600 MidCap 400 Index, the Portfolio Valley Forge, Pennsylvania 19482 would invest 5% of its assets in that company. - ----------------------------------------------------------------------------------------------------------------------------- MID-CAP GROWTH FUNDS - ----------------------------------------------------------------------------------------------------------------------------- FIDELITY VIP DYNAMIC CAPITAL o Normally invests primarily in May be appropriate for investors APPRECIATION PORTFOLIO, INITIAL common stocks. seeking broad exposure to the CLASS o Invests in domestic and foreign domestic equity market without Objective: issuers. investment style restrictions. - ---------- o Invests in either "growth" stocks Capital appreciation or "value" stocks or both o Uses fundamental analysis of Adviser: each issuer's financial condition - -------- and industry position and market Fidelity Management & Research and economic conditions to select Company investments. 82 Devonshire Street Boston, Massachusetts 02109 - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 14
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- MID-CAP GROWTH FUNDS - ----------------------------------------------------------------------------------------------------------------------------- USAA LIFE AGGRESSIVE GROWTH FUND o Invests primarily in equity Designed for the investor seeking to Objective: securities of large companies that benefit from long-term growth of - --------- are selected for their attractive capital. Generally, this Fund is Appreciation of capital growth potential. These expected to have a greater potential investments will tend to consist for long-term capital appreciation Adviser: primarily of a diversified than growth and income funds, but is - -------- portfolio of stocks of large also significantly more volatile. USAA Investment Management Company companies selected for their 9800 Fredericksburg Road growth potential. The term San Antonio, Texas 78288 "equity securities" is used to include common stocks, Subadviser: convertible securities, and - ----------- securities that carry the right to Marsico Capital Management, LLC buy common stock. 1200 17th Street, Suite 1300 o While most of the Fund's assets Denver, CO 80202 will be invested in U.S. securities, we may also invest up to 20% of the Fund's total assets in foreign securities purchased in either foreign or U.S. markets. - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD SMALL COMPANY o Invest mainly in the stocks of May be suitable investment for you GROWTH PORTFOLIO smaller companies (which, at the if: (1) you wish to add a small- Objective: time of purchase, typically have a capitalization growth stock fund to - ---------- market value of less than $1-$2 your existing holdings, which could Long-term growth of capital billion). These companies are include other stock investments as considered by the Portfolio's well as bond and money market Advisers: advisers to have above-average investments; (2) you are seeking - --------- prospects for growth, but often growth of capital over the long-term Granahan Investment Management, provide little or no dividend at least five years; (3) you are not Inc. income. looking for dividend income; (4) you 275 Wyman Street are willing to assume the above- Waltham, Massachusetts 02154 average risk associated with investing in small cap growth stocks. Grantham, Mayo, Van Otterloo & Co. LLC 40 Rowes Wharf Boston, Massachusetts 02110 - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 15
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- DOMESTIC HYBRID FUND - ----------------------------------------------------------------------------------------------------------------------------- USAA LIFE DIVERSIFIED ASSETS FUND o Invests in a diversified program Designed for the investor seeking Objective: within one mutual fund by the benefits of both long-term capital - ---------- allocating the Fund's assets, appreciation and current return. Long-term capital growth, consistent under normal market conditions, Generally, the Fund is expected to with preservation of capital and in approximately 60% equity have less exposure to equity balanced by current income. securities (selected for their securities than growth funds. potential return) and Adviser: approximately 40% in debt - -------- securities of varying maturities. USAA Investment Management Company o The equity securities will consist 9800 Fredericksburg Road significantly of domestic common San Antonio, Texas 78288 stocks and, to a much lesser extent, may include shares of real estate investments trust (REITs). o The fixed income component will be made up of the same types of debt securities in which the USAA Life Income Fund may invest. The Fund may also invest in municipal lease obligations. o While most of the Fund's assets will be invested in U.S. securities, we may also invest up to 20% of the Fund's total assets in foreign or U.S. markets. These foreign holdings may include securities issued in emerging markets as well as securities issued in established markets. - ----------------------------------------------------------------------------------------------------------------------------- WORLD STOCK FUND - ----------------------------------------------------------------------------------------------------------------------------- USAA LIFE WORLD GROWTH FUND o Invests primarily in equity Designed for the investor seeking to Objective: securities of both foreign and diversify by investing in securities of - ---------- domestic issuers. both domestic and foreign issuers Long-term capital appreciation o May not invest more than 25% of and who is prepared to bear the risks assets in one industry. of such investments. Because of the Adviser: o Under normal market conditions, Fund's emphasis on equity securities - -------- the Fund's investments will be and securities of foreign issuers, the USAA Investment Management diversified in at least three Fund should not be relied upon as a Company countries, one of which is the balanced investment program. 9800 Fredericksburg Road United States. San Antonio, Texas 78288 Subadviser: - ----------- MFS Investment Management 500 Boylston Street Boston, MA 02116 - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 16
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- FOREIGN STOCK FUND - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD INTERNATIONAL PORTFOLIO o Invests in the stocks of seasoned May be suitable investment for you Objective: companies located outside of the if: (1) you wish to add an - ---------- United States. international stock fund to your Long-term growth of capital o In selecting stocks, Schroder existing holdings, which could evaluates foreign markets around include other stock investments as Adviser 1: the world. Within markets well as bond and money market - ---------- regarded as having favorable investments; (2) you are seeking Schroder Investment Management investment climates, Schroder growth of capital over the long-term North America, Inc. selects companies with above- at least five years; (3) you are not 875 3rd Avenue, New York, NY 10022 average growth potential whose looking for income; (4) you are stocks sell at reasonable prices. willing to assume the additional Sub-Adviser: o Baillie Gifford uses a risks (including currency and Schroder Investment Management fundamental approach to identify country risk) associated with North America, Limited quality growth companies and international stocks. 31 Gresham Street considers sustainable earnings London EC2V 7QA, England and free cash flow growth to be critical factors in evaluating a Adviser 2: company's prospects. Companies Baillie Gifford Overseas Ltd are screened first for quality and 1 Rutland Court, Edinburgh, EH3 then for value. Baillie Gifford 8EY, Scotland looks for companies with attractive industry backgrounds, strong competitive positions within those industries, high quality earnings and a positive approach towards shareholders. The main fundamental factors considered when analyzing companies in this bottom-up analysis are: earnings growth, cash flow growth, profitability, debt and interest coverage, and valuation. - ----------------------------------------------------------------------------------------------------------------------------- LONG-TERM BOND FUND - ----------------------------------------------------------------------------------------------------------------------------- USAA LIFE INCOME FUND o Invests primarily in U.S. dollar- Designed primarily for the investor Objective: denominated debt and income- seeking to benefit from returns - ---------- producing securities that have higher than those available in a Maximum current income without been selected for their high yields money market fund. An investor in undue risk to principal. relative to the risk involved. this Fund should also be willing to o Debt securities must be accept principal fluctuations. The Adviser: investment-grade at the time of Fund should not be relied upon as a - -------- purchase. balanced investment program. USAA Investment Management Company 9800 Fredericksburg Road San Antonio, Texas 78288 - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 17
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- HIGH YIELD BOND FUND - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD HIGH YIELD BOND PORTFOLIO o Invests primarily in a diversified May be a suitable investment for Objective: group of high-yielding, higher- you if: (1) you are seeking a high - ---------- risk corporate bonds with level of income and are willing to High level of income medium-and lower-range credit- take substantial risks in pursuit of quality ratings, commonly known higher returns; (2) you have a long- Adviser: as "junk bonds". term investment horizon-more than - -------- o The Portfolio emphasizes higher five years. Wellington Management Company, grades of credit quality within the LLP high-yield bond universe. The 75 State Street Portfolio invests at least 80% of Boston, Massachusetts 02109 its assets in corporate bonds that are rated below Baa by Moody's Investors Service, Inc. or below BBB by Standard & Poor's Corporation. o The Portfolio may not invest more than 20% of its assets in any of the following taken as a whole: securities with credit ratings lower than B or that are unrated, convertible securities, and preferred stocks. o The adviser may consider a security's potential for capital appreciation only when it is consistent with the objective of high and sustainable current income. - ----------------------------------------------------------------------------------------------------------------------------- SPECIALTY-REAL ESTATE FUND - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD REIT INDEX PORTFOLIO o Invests in the stocks of real estate May be a suitable investment for Objective: investment rusts (REITs), which you if: (1) You are looking for a - ---------- own office buildings, hotels, simple way to gain indirect exposure High level of income and moderate shopping centers, and other to the real estate market to further long-term growth of capital properties. diversify your existing holdings, o The Portfolio employs a which could include other stock, Adviser: "passively" managed-or index- bond, and money market - -------- approach, by holding a mix of investments. (2) You want a stock The Vanguard Group securities that seeks to match the fund that offers the potential for P.O. Box 2600 performance of the Morgan above-average dividend income. Valley Forge, Pennsylvania 19482 Stanley REIT Index, a benchmark (Historically, the securities that of U.S. REITs. Holdings of the make up the Index have provided Index, and thus of the Portfolio, higher dividend income than those in are weighted according to each the S&P 500 Index.) (3) You are stock's market capitalization. seeking modest growth of capital o The Portfolio holds each stock over the long term - at least five found in the Index in years. approximately the same proportion as represented in the Index itself. For example, if a specific stock represented 2% of the Morgan Stanley REIT Index, the Portfolio would invest 2% in that stock - -----------------------------------------------------------------------------------------------------------------------------
VUL Policy 18
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT & INVESTMENT ADVISER STRATEGIES INVESTOR PROFILE - ----------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUND - ----------------------------------------------------------------------------------------------------------------------------- VANGUARD MONEY MARKET PORTFOLIO o Invests more than 25% of its May be a suitable investment for Objective: assets in high-quality, short-term you if: (1) you wish to add a money - ---------- money market instruments issued market fund to your existing Income while maintaining liquidity by companies in the financial holdings, which might also include and a stable share price of $1 services industry. The Fund also stock and bond investments; (2) you invests in high-quality money are seeking income and stability of Adviser: market instruments issued by principal. - -------- non-financial corporations, such The Vanguard Group as securities backed by the full P.O. Box 2600 faith and credit of the U.S. Valley Forge, Pennsylvania 19482 government, securities issued by U.S. agencies, or obligations issued by corporations and financial institutions. - -----------------------------------------------------------------------------------------------------------------------------
POLICY LAPSE AND REINSTATEMENT - ------------------------------ LAPSE Your Policy will lapse if your Policy Cash Value is insufficient to pay the Monthly Deduction and any loan interest due, unless you have paid enough premiums to qualify for the Guaranteed Death Benefit. (See "Guaranteed Death Benefit") GRACE PERIOD You have a 61-day grace period to provide sufficient payment to keep your Policy in force. The grace period will begin on any Monthly Anniversary when your Policy Cash Value is insufficient to cover the Monthly Deduction for the following month and any loan interest due. We will notify you and any assignee of record of the date the grace period expires and of the premium payment necessary to continue the Policy in effect. During the grace period, you must submit enough premium to cover 3 Monthly Deductions and any loan interest due. If you do not pay the necessary premium within the grace period, the Policy will lapse, terminating all insurance, including benefits provided by rider. If the Insured dies during the grace period, we will pay your Beneficiary the death benefit, less any due and unpaid Monthly Deductions and any loan interest due through the month of death. During the grace period, or at lapse, we will not refund any Cash Value remaining in the Policy at the beginning of the grace period. GUARANTEED DEATH BENEFIT During the first 5 Policy years, your Policy will qualify for the Guaranteed Death Benefit if specified minimum premium payments have been paid. Guaranteed Death Benefit means that we guarantee that your Policy will not lapse, even if the Cash Value is insufficient to pay for the monthly deduction and any loan interest then due. The determination will be made at each Monthly Anniversary, at which time premium payments must total the Annual Target Premium payment specified in your Policy, adjusted to reflect the number of Monthly Anniversaries since the Policy's Effective Date. For example, if o Annual Target Premium is $2,000. o The policy has been in force for 3.5 years. o There are no partial surrenders and no loans. o The Cash Value at 3.5 years is insufficient to pay the Monthly Deduction. To qualify for the Guaranteed Death Benefit, premium payments must equal the Annual Target Premium. Here, $2,000 x 3.5 years = $7,000 premium. If $7,000 total premiums have been paid, then the policy will not lapse because the Guaranteed Death Benefit applies. The Guaranteed Death Benefit is only available during the first five policy years. We will declare a new Annual Target Premium payment if the Specified Amount is increased or decreased within the first five policy years. We will use the new Annual Target Premium Payment in the Guaranteed Death Benefit calculation. VUL Policy 19 REINSTATEMENT You may reinstate a lapsed Policy within 5 years from the date of lapse and before the Policy's Maturity Date if you meet all of the following requirements: o Provide a completed written application for reinstatement. o Give proof of insurability satisfactory to USAA Life. o Make payment of premium sufficient to pay the estimated Monthly Deductions for at least the 3 Policy months beginning with the effective date of reinstatement. o Make payment of, or agreement to reinstate, any Policy Indebtedness. The Effective Date of the reinstatement will be the Monthly Anniversary on or before we approve your request. Upon reinstatement, the death benefit will be the Specified Amount in effect at lapse, less any reinstated Indebtedness. Your Policy's initial reinstated Cash Value will be calculated as follows: o Net reinstated premium, o minus the monthly deduction for the month following the Effective Date of reinstatement, o plus (if applicable) any reinstated indebtedness, o plus any interest earnings credited to the loan collateral held in the general account. An advantage of reinstating a lapsed Policy is that we will not deduct the first-year Administrative Charge again if it has already been paid. A possible disadvantage of reinstatement is that you must pay or reinstate any Policy Indebtedness. A Policy cannot be reinstated once it has been fully surrendered. CHARGES AND DEDUCTIONS - ---------------------- PREMIUM CHARGE o We deduct a 3% premium charge from each premium as compensation for selling expenses and taxes. o We deduct the premium charge from all of your premium payments until the gross amount of premium payments exceeds the sum of the Annual Target Premium payments payable over 10 years. (See "Annual Target Premium Payment") o If you increase or decrease the Specified Amount, we will declare a new Annual Target Premium Payment for you and use it to determine whether the premium charge applies. The amount remaining after we deduct the premium charge is the Net Premium payment and is the amount we allocate to the Variable Fund Accounts you select. Example: Annual Target Premium payment is $2,000. - ------- $2,000 x 10 years = $20,000. We would no longer deduct the premium charge once you have paid in premiums of $20,000. MONTHLY DEDUCTIONS FROM CASH VALUE On your Policy's Effective Date, and each Monthly Anniversary thereafter, we will deduct certain monthly charges from your Policy's Cash Value (See "Deduction of Charges"). The Monthly Deduction includes the following items, each as described below. o Cost of insurance charge. o Charge for optional insurance benefits provided by rider. o Administrative charge. o Maintenance charge. Cost of Insurance Charge. (See "Calculating Your Cost of Insurance") The monthly cost of insurance charge depends on a number of variables, including: o Specified Amount of insurance coverage; o Death benefit option you select; o Cost of insurance RATE; and o Investment experience of your value in the Variable Fund Accounts. VUL Policy 20 Charges for Optional Insurance Benefits. Monthly Deductions include charges for any optional insurance benefits added to the Policy by rider. (See "Optional Insurance Benefits") Administrative Charges (First Policy Year Only). During the first 12 Policy months only, we deduct a monthly Administrative Charge of $10 for start-up administrative expenses we incur in issuing your Policy. These expenses include the cost of processing your application, conducting a medical examination, determining insurability and rate class, and establishing Policy records. The investment advisers or other affiliates of certain Funds may reimburse USAA Life for the cost of administrative services provided to the Funds as investment options under the Policies. Compensation is paid out of fee earnings, based on a percentage of a Fund's average net assets attributable to a Policy. Maintenance Charge. The Monthly Deduction includes a recurring Maintenance Charge of $5. This charge compensates us for the recurring administrative expenses related to the maintenance of your Policy and of the Separate Account. These expenses include premium notices and collection, record keeping, processing death benefit claims, Policy changes, reporting, and overhead costs. USAA Life guarantees that this charge will not increase during the life of the Policy. SEPARATE ACCOUNT CHARGES We deduct certain charges on a daily basis as a percentage of the value of each Variable Fund Account of the Separate Account. These charges reduce your Policy's Cash Value. Mortality and Expense Charge. We assess a daily charge of .00204% (equal to .75% annual rate) against the values of each Variable Fund Account for mortality and expense risks that USAA Life assumes under the Policies. We guarantee that this charge will not increase during the life of your Policy. The mortality risk that USAA Life assumes is that Insureds may live for a shorter period of time than we estimate and thus a greater amount of death benefits than expected will be payable. The expense risk we assume is that expenses incurred in issuing and administering the Policies will be greater than we estimate. Federal Income Tax Charge. Currently, we make no charge against a Variable Fund Account for federal income tax that may be attributable to that Account. We may, however, make such a charge in the future, should it be necessary. We also may make charges for other taxes, if any, attributable to any Variable Fund Account. TRANSFER CHARGES For each transfer between Variable Fund Accounts in excess of 18 per Policy Year, we assess a $25 charge. We reserve the right, at any time, and without prior notice, to terminate, suspend, or modify these transfer privileges. SURRENDER CHARGES Partial Surrender Charge. For each partial surrender, we assess a charge equal to the lesser of $25 or 2% of the amount withdrawn. This charge is an administrative processing fee. Full Surrender Charge. For full surrenders prior to the end of the 10th Policy Year, we assess the surrender charge described below. The surrender charge compensates USAA Life for the expenses it incurs in distributing the Policies. The amount of the surrender charge will equal a percentage of the Annual Target Premium Payment specified in your Policy, regardless of the amount of premiums you actually pay. The surrender charge depends on when you surrender. As shown in the table below, the surrender charge declines each Policy Year to 0% after the 10th Policy Year.
- ------------------------------------------------------------------------------------------------------------ SURRENDER CHARGE AS A % OF ANNUAL TARGET PREMIUM PAYMENT POLICY YEAR 1 2 3 4 5 6 7 8 9 10 11+ APPLICABLE % 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0 - ------------------------------------------------------------------------------------------------------------
VUL Policy 21 Example: o Annual Target Premium payment is $2,000, o Full surrender during the first Policy Year Surrender charge = 50% x $2,000 or $1,000 surrender charge If you increase or decrease your Policy's Specified Amount within the first 10 Policy Years, we will set a new Annual Target Premium Payment for you. We will use the new Annual Target Premium Payment to determine the surrender charge. (See "Changing Your Policy's Specified Amount") We will not impose a surrender charge at the time you decrease your Policy's Specified Amount. OTHER CHARGES The Variable Fund Accounts purchase shares of the Funds at the Net Asset Value ("NAV") of the shares. The NAV reflects the investment management fees and other expenses already deducted from each Fund's assets. These fees and other expenses appear in the "Fee Tables." Please refer to the prospectuses for the Funds for more information on these fees and expenses. DEDUCTION OF CHARGES We will deduct the Monthly Deduction, any partial surrender charge, and any transfer charge from your value in each Variable Fund Account in the same proportion as each Variable Fund Account's value has to the total Policy Cash Value. Alternatively, you may specify in advance the Variable Fund Account(s) from which you want the partial surrender charge and transfer charge deducted. DEATH BENEFIT - ------------- The Policy offers two death benefit options, Option A and Option B, which you select on your Policy application. Under either option, we will reduce the amount of death benefit we pay by the amount of any outstanding Indebtedness and any due and unpaid Monthly Deductions. (See "Payment of Policy Benefits") Partial surrenders and related surrender charges also will reduce the amount of your death benefit. (See "Changing Your Policy's Specified Amount") The death benefit increases by any applicable optional insurance benefits provided by rider. (See "Optional Insurance Benefits")
- ------------------------------------------------------------------------------------------------------------------------- OPTION A (LEVEL DEATH BENEFIT) OPTION B (INCREASING DEATH BENEFIT) ------------------------------ ----------------------------------- - ------------------------------------------------------------------------------------------------------------------------- DEATH BENEFIT Greater of: Greater of: o Your Policy's Specified Amount, or o Your Policy's Specified Amount PLUS o The Minimum Amount Insured your Cash Value, or o The Minimum Amount Insured - ------------------------------------------------------------------------------------------------------------------------- PURPOSE Emphasizes Cash Value Growth Emphasizes Death Benefit Growth - ------------------------------------------------------------------------------------------------------------------------- IMPACT Cost of Insurance will generally be lower than Death Benefit generally greater than for same for same Specified Amount in Option B Specified Amount in Option A - -------------------------------------------------------------------------------------------------------------------------
EXAMPLE OF OPTION A AND OPTION B: --------------------------------- o Insured less than 40 years old o Policy's Specified Amount is $100,000 o No loans or outstanding Monthly Deductions o Policy Cash Value is $25,000
- ------------------------------------------------------------------------------------------------------------------------- OPTION A OPTION B -------- -------- - ------------------------------------------------------------------------------------------------------------------------- Death Benefit greater of $100,000 or Minimum Death Benefit greater of $125,000 ($100,000 Amount Insured* Specified Amount plus $25,000 Cash Value) or the Minimum Amount Insured* - -------------------------------------------------------------------------------------------------------------------------
* The Minimum Amount Insured is calculated by multiplying Cash Value by a specific percentage based on the Insured's age (see "Calculating Your Cost of Insurance"). CHANGING DEATH BENEFIT OPTION After the death benefit option you selected on your application has been in effect for one Policy Year, you may change it by sending written notice to USAA Life. The new death benefit option also must remain in effect for one Policy Year before we allow another change. There is no charge or fee for changing the death benefit option. The VUL Policy 22 change will become effective on the Monthly Anniversary on or following the date we approve the change. A change in death benefit option will affect your cost of insurance. (See "Calculating Your Cost of Insurance") We will recalculate the maximum premium limitation following a change in death benefit option. (See "Minimum Amount Insured" under "Calculating Your Cost of Insurance") Option A to Option B - -------------------- o Option B Specified Amount equals prior Option A Specified Amount MINUS Policy's Cash Value as of the date we receive written notice of the requested change. (The result of this is that the death benefit before and after the change will remain the same.) o We will not allow the change if it would result in a Specified Amount that is less than the minimum Specified Amount of $50,000 ($25,000 for Insureds less than 18 years of age). o If you want the Option B Specified Amount to be the same as the prior Option A Specified Amount, you must provide proof of insurability. Option B to Option A - -------------------- o Option A Specified Amount equals prior Option B Specified Amount PLUS Policy's Cash Value next determined on the Date of Receipt of written notice. (The result of this is that the death benefit before and after the change will remain the same.) o This change does not require proof of insurability, unless you also want to make changes in your Policy's Specified Amount or add optional benefits by rider. CHANGING POLICY'S SPECIFIED AMOUNT You may increase or decrease your Policy's Specified Amount, within certain limits. A change in Specified Amount: o May increase or decrease your cost of insurance charges (see "Calculating Your Cost of Insurance"). o May have tax consequences (see "Tax Matters"). o Does not necessarily require changes in planned periodic premiums (see "Planned Periodic Premium Payments"). o Will require us to set a new Annual Target Premium payment for the new Specified Amount (see "Annual Target Premium Payment"). Whether the premium charge applies is determined using the new Annual Target Premium Payment. (See "Premium Charge") We will recalculate the maximum premium limitation following an increase or decrease in Specified Amount. (See "Premium Payments" and "Tax Matters") Any increase to your Policy's specified Amount must be at least $25,000, unless such increase is in conjunction with a change in death benefit option or to satisfy federal tax law requirements. For any increase, you must apply in writing and we will require satisfactory proof of insurability. An increase will become effective on the Monthly Anniversary on or following the date we approve the increase. Your rights to cancel your Policy do not apply to increases in Specified Amounts. You may not reduce your Policy's Specified Amount to less than $50,000. There are exceptions for reductions resulting from a surrender of Cash Value under Option A and if the Insured is less than 18 years of age. We will not allow a reduction that would cause your Policy not to qualify as a life insurance contract for federal tax law purposes. You must request a reduction in writing. To determine the cost of insurance charge, we will apply any decrease in Specified Amount against the most recent increase in Specified Amount. The decrease will become effective on the Monthly anniversary on or following the Date of Receipt of your written notice to USAA Life. OPTIONAL INSURANCE BENEFITS - --------------------------- You may add one or more of the following optional insurance benefits to your Policy by rider, subject to certain underwriting or issue requirements. Each rider's description in this Prospectus is subject to the specific terms and conditions of the rider. We will deduct the cost of any optional insurance benefits as part of the Monthly Deduction. (See "Monthly Deductions") NOT ALL RIDERS ARE AVAILABLE IN ALL STATES. Accelerated Benefits for Terminal Illness Rider. This rider provides for an early benefit payment to you upon receipt of proof that the Insured is terminally ill (as defined in the rider). The maximum amount you may receive under the rider prior to the Insured's death is the lesser of (1) 50% of the then current death benefit payable under the Policy (excluding additional benefits payable under other riders), or (2) $250,000. We will deduct the amount of any Indebtedness from the amount of the early payment. We treat the early payment as a "lien" against Policy VUL Policy 23 values. We reduce the death benefit by the amount of the lien and any Policy loans, plus accrued interest. We will continue to take Monthly Deductions after the early payment. The Owner's access to the Cash Value of the Policy through Policy loans, partial surrenders, or full surrender is limited to any excess of the Cash Value over the amount of the lien. We charge interest on the amount of the early payment and any unpaid Monthly Deductions. We require premium payments to be made for cost of insurance that are still required to be made after the early payment. If such payment is not paid when due, we will pay the premium on behalf of the Owner and add that amount to the early payment amount to be deducted from the death benefit. If the amount of the early payment plus accrued interest and required unpaid cost of insurance premiums ever exceed the amount of the death benefit, we will terminate the Policy and no additional insurance benefits will be payable. There is no charge for this rider. Accidental Death Benefit Rider. This rider provides an additional life insurance benefit if the Insured's death results from accidental bodily injury (as defined in the rider). You can select an additional life insurance benefit up to a maximum of $200,000, or the Specified Amount, whichever is less. The premium for this rider is $.84 per $1,000 of coverage per year. Children Term Life Insurance Rider. This rider provides level term life insurance on the lives of the Insured's children (as defined in the rider). The cost for this rider is $6 per $1,000 of coverage per year. Extended Maturity Date Rider. This rider permits you to extend your Policy's Maturity Date up to 10 years beyond what it otherwise would be (i.e., the Monthly Anniversary following the Insured's 100th birthday). The death benefit during the extended maturity period will be your Policy's Cash Value less any Indebtedness. Also during this period, the Policy's Cash Value will continue to accrue in the same manner as described in the Policy, and any Policy loans in effect will continue to accrue interest. We will not deduct cost of insurance charges or accept additional premium payments during this period. We will assess the Maintenance Charge during this period. Extension of the Maturity Date is subject to all of the terms and conditions of the Policy, except where they are inconsistent with the rider. Extending the maturity date of your Policy beyond the Insured's age 100 may result in the current taxation of any increases in your Policy's Cash Value that result from investment experience in the Variable Fund Accounts. You should consult a qualified tax advisor before making such an extension. Waiver of Monthly Deduction Rider. This rider waives your Monthly Deduction during periods of total and permanent disability of the Insured, but only if the Insured has been totally and permanently disabled (as defined in the rider) for at least 6 consecutive months. We will not deduct the amount of any Monthly Deduction waived under this rider from the Cash Value proceeds payable upon maturity of your Policy, or the death benefit proceeds payable if the Insured dies before the Policy matures. If Option A is in effect when we approve a claim under the rider, we will change your death benefit option from Option A to Option B as of the Monthly Anniversary after the disability began. While we are paying benefits under the rider, you may not increase your Policy's Specified Amount. Please note that the rider does not apply to interest under your Policy loans. As a result, it is possible that your Policy could lapse for nonpayment of loan interest. The premium for this rider varies based upon the age of the Insured. If you would like further information about the optional insurance benefits available under your Policy, please contact us at 1-800-531-2923. Please note that adding or deleting riders, or increasing or decreasing coverage under the riders, can have tax consequences. (See "Tax Matters") You should consult a qualified tax advisor. PAYMENT OF POLICY BENEFITS - -------------------------- BENEFITS AT MATURITY All Policies will mature on the Monthly Anniversary following the Insured's 100th birthday, unless extended by rider. If the Insured is living at maturity, we will pay the Cash Value of your Policy (less any Indebtedness and any due and unpaid Monthly Deductions). We may postpone payments in certain circumstances. (See "Postponement of Payments") PAYMENT AT DEATH As long as your Policy has not terminated due to lapse, maturity, or full surrender, we will pay your Policy's death benefit to your Beneficiary. We will usually pay the death benefit within 7 days after we receive due proof of death at our Home Office and all other requirements necessary to make payment. We will determine the Cash Value portion of the death benefit as of the Valuation Date immediately following the date of death. We will pay the death benefit in cash or under one or more of the payment options you have selected in advance. If you have not selected a payment option, your Beneficiary may select the payment option. We may postpone payment of the death benefit in certain circumstances. (See "Postponement of Payments") VUL Policy 24 We will reduce the death benefit by any Indebtedness and any due and unpaid Monthly Deductions. These proceeds will be increased by any applicable additional optional insurance death benefits provided by rider. DEATH BENEFIT PAYMENT OPTIONS We will pay the death benefit in a lump sum or under one of the payment options below. During the Insured's lifetime, you may select a payment option. If the Insured dies and you have not chosen a payment option, your Beneficiary can choose a payment option. If you have selected a payment option before the Insured's death, your Beneficiary may not change that option after the Insured's death. Proceeds applied under a payment option will no longer vary by the investment experience of the Variable Fund Accounts. The nature and timing of your choice of payment option may have tax consequences to you or your Beneficiary. You should consult your tax advisor. Interest Only Option. The Policy's principal amount may be left on deposit with USAA Life for a mutually determined period, not to exceed 30 years. We will make interest payments at mutually determined regular intervals. The principal amount will earn interest at a minimum rate of 3% compounded annually. At the end of the fixed period, we will pay the principal amount. Installments for a Fixed Period Option. Under this option, we will pay the principal amount plus interest in installments for a specified number of years (not more than 30), as mutually agreed upon. The amount of the installments will not be less than that shown in the Table of Guaranteed Payments contained in your Policy. Installments of a Fixed Amount Option. Under this option, we will pay the principal amount plus interest in installments, as mutually agreed upon, until the amount applied, together with interest on the unpaid balance, is paid in full. Other Options. We will apply the principal amount under any other option mutually agreed upon. Any arrangements involving more than one payment option, or involving a Beneficiary that is not a natural person (e.g., a corporation) or who is a fiduciary (e.g., a trustee) are subject to our approval. In addition, the details of the arrangements are subject to our rules in effect at the time the arrangements take effect. The Beneficiary may designate a successor payee as to any amount that we would otherwise pay to the Beneficiary's estate. Amounts applied under these payment options will not be subject to the claims of creditors or to legal process, to the extent permitted by law. CASH VALUE - ---------- Your Policy's Cash Value will vary: o on a daily basis with the investment experience of the Variable Fund Accounts to which you have allocated your Net Premium Payments; o to reflect the effect of various Policy transactions, such as additional premium payments, partial surrenders, and Policy loans; and o to reflect applicable charges and deductions. YOUR POLICY DOES NOT PROVIDE A MINIMUM GUARANTEED CASH VALUE, WHICH MEANS YOU BEAR THE ENTIRE INVESTMENT RISK THAT YOUR CASH VALUE COULD FALL TO ZERO. On your Policy's Effective Date, your Cash Value will equal your Net Premium Payments, less the Monthly Deduction for the following Policy month. Thereafter, your Cash Value on any Valuation Date will equal the sum of: o your Policy's value in each Variable Fund Account; o plus, if applicable, any value held in our general account to secure any Policy loan; o plus any interest earnings credited on the value held in the general account; o less the amount of any outstanding Indebtedness; o less any Monthly Deductions, transfer charges, and partial surrender charges applied through that date. VUL Policy 25 On each Monthly Anniversary, the Monthly Deduction will reduce your Policy's Cash Value. CALCULATING YOUR VALUE IN THE VARIABLE FUND ACCOUNTS When you invest in a Variable Fund Account, you are purchasing units of interest or "Accumulation Units" ("units") of that Account. You purchase units at their price next determined on any given Valuation Date following the receipt of your payment. Therefore, on any given Valuation Date, you can calculate the value of your investment in a Variable Fund Account by multiplying (1) the number of units of each Variable Fund Account credited to your Policy by (2) the price of the units on that Date. We determine the number of units to credit to you by dividing (1) the Net Premium Payment you allocate to a Variable Fund Account by (2) that Variable Fund Account's price per unit or "unit value" next computed on the Date of Receipt of the premium payment. Certain transactions will affect the number of units in a Variable Fund Account credited to you. Net Premium Payments will increase the number of full or fractional units. Loans, partial or full surrenders, partial surrender charges, transfer charges, and Monthly Deductions involve redemption of full or fractional units and will decrease the number of units. In addition, Transfer of Value among Variable Fund Accounts will decrease the number of units in the Variable Fund Accounts from which value is transferred and increase the number of units in the Variable Fund Accounts to which value is transferred. Each Variable Fund Account's units are valued separately. We calculate the value of an Accumulation Unit ("Accumulation Unit Value (AUV)") for each Variable Fund Account on any Valuation Date by adjusting the unit value from the previous Valuation Date for: o the investment performance of the corresponding Fund; o any dividends or distributions paid by that Fund; and o the Separate Account charges that we assess. (See "Separate Account Charges.") Log on to USAA.COM to access information about your Policy details, Variable Fund Account summaries, and financial activity information. You may also find out information about your Cash Value, including the value and number of units of each Variable Fund Account credited to your Policy, by calling us at 1-800-531-4265. TRANSFER OF VALUE Except during the first 30 days after your Policy becomes effective, you may transfer all or part of the value in any Variable Fund Account to any other Variable Fund Account of the Separate Account, up to 18 times per Policy Year, without charge. Each transfer thereafter is subject to a $25 charge. Excessive transfer activity can disrupt portfolio management strategy and increase Variable Fund Account expenses, which are borne by all Policy owners participating in the Variable Fund Accounts regardless of their transfer activity. You should note that the product is not designed for professional "market timing" organizations, or other organizations or individuals engaged in market timing strategy, making programmed transfers, or frequent transfers that are large in relation to the total assets of the underlying Funds in which the Variable Fund Account options invest. Market timing strategies are disruptive to the underlying Funds in which the Variable Fund Account options invest. If we determine that your transfer patterns among the Variable Fund Account options reflect a market timing strategy, we reserve the right to take action including but not limited to: restricting the availability of transfers through telephone requests, facsimile transmissions, automated telephone services, internet services, or any electronic transfer services. We will inform you in writing of any such transfer restrictions on your Policy. The minimum amount you can transfer from any Variable Fund Account is $250 (or the remaining Account value if less). A transfer will result in the redemption or purchase (or both) of units of the Variable Fund Accounts involved. You may request a transfer by telephone or by Notice to Us. A request for transfer must clearly state the amount to be transferred, the Variable Fund Account from which it is to be withdrawn, and the Variable Fund Account to which it is to be credited. We will effect the transfer using the Variable Fund Account unit values next computed on the Date of Receipt of your request, unless a postponement of payments is in effect. (See "Postponement of Payments.") We reserve the right at any time, and without prior notice, to terminate, suspend, or modify these transfer privileges. VUL Policy 26 LOANS - ----- After your first Policy Year, you may borrow money from USAA Life by using your Policy as the sole security for the loan. The amount that you may borrow is the "loan value." The maximum loan value is 85% of your cash surrender value. You may request a loan by telephone or by Notice to Us, but you must obtain the written consent of all assignees and irrevocable Beneficiaries, if any, before we can make the loan. We will usually pay you the loan proceeds within 7 days after the Date of Receipt of your loan request, unless a postponement of payments is in effect. (See "Postponement of Payments.") LOAN COLLATERAL When you take a loan, we will transfer an amount equal to the loan from your value in the Variable Fund Accounts to our general account. We make this transfer of "loan collateral" to secure your loan. You may specify the Variable Fund Accounts from which you want us to withdraw the loan collateral. If you do not so specify, we will withdraw the loan collateral from the Variable Fund Accounts in the same proportion as each Account's value has to the total Policy Cash Value. While a loan is outstanding, we will credit the loan collateral with interest on a daily basis at an effective annual rate of 4%. LOAN INTEREST You are charged interest on the loan at a maximum annual rate of 6% payable in advance. We have the option of charging less. For Policies that have been in effect more than 10 Policy Years and if the Insured is age 55 or older, we charge a preferred loan interest rate of 4.5%. We have the option of charging less for a preferred loan. The entire amount of interest on your loan balance for each Policy Year is payable in advance at the commencement of the loan and at the beginning of each Policy Year thereafter. We will automatically deduct the interest from your Variable Fund Account(s) in the same proportion as each Account's value has to the total Policy Cash Value on the date the loan starts. Similarly, we will deduct interest from your Variable Fund Account(s) at the beginning of each Policy Year in the same proportion as each Account's value has to the total Policy Cash Value as of that date. If there is insufficient value in your Variable Fund Account(s) to pay the interest in advance, your policy will enter its grace period. Because interest is paid in advance, loan repayments during a Policy Year may result in an overpayment of interest. We will credit any overpayment of interest to you on the date of any loan repayment. REPAYMENT OF INDEBTEDNESS You may repay your Indebtedness (i.e., loans and any unpaid interest) in full or in part at any time before the Insured's death and while the Policy is in effect. If not repaid, we will deduct the Indebtedness from any death benefit, maturity benefit, or full surrender proceeds. You may not repay loans and unpaid loan interest in existence at the end of the grace period until the Policy is reinstated. You must designate any loan repayment as such. Otherwise, we will treat it as a premium payment. You may direct how you want your loan repayment to be allocated among the Variable Fund Accounts. If you do not specify an allocation, we will allocate your loan repayment to the Variable Fund Accounts in the same proportion as Net Premium Payments are being allocated. EFFECT OF POLICY LOANS A loan will reduce the value of the Variable Fund Accounts from which it is deducted. Thus, the amount loaned will not share in the investment experience of the Variable Fund Accounts. A loan, whether repaid or not, will have a permanent effect on the Cash Value of the Policy. We will determine loan values as of the Date of Receipt of the loan request. A Policy loan may increase the chance that your Policy may lapse and result in adverse tax consequences. For situations where a Policy loan may be treated as a taxable distribution, see "Tax Matters." VUL Policy 27 SURRENDERS - ---------- You may fully or partially surrender your Policy for all or part of its Cash Value to the extent described below. We will usually pay full or partial surrenders of Cash Value within 7 days after we receive your written request at our Home Office. We will determine the Cash Value of the surrendered amount as of the Date of Receipt of your request for surrender. There may be tax consequences in connection with a full or partial surrender. (See "Tax Matters.") You must obtain the written consent of all assignees or irrevocable Beneficiaries, if any, before we will process any request for surrender. We will effect any surrenders using the Variable Fund Account unit values next computed on the Date of Receipt of your Notice to Us or, in the case of partial surrenders, your Notice to Us or telephone request. In certain circumstances, we may postpone the payment of surrenders. (See "Postponement of Payments.") FULL SURRENDERS At any time before the Insured's death and while the Policy is still in effect, you may surrender your Policy for its entire cash surrender value by sending Notice to Us. We may require the return of the Policy. We also may assess a surrender charge. (See "Surrender Charges.") We sometimes refer to the net amount you would receive as the Policy's "cash surrender value." We will terminate your Policy and all insurance on the Date of Receipt of your Notice to Us. PARTIAL SURRENDERS After your first Policy Year and while your Policy is still in effect, but before the Insured's death, you may surrender a portion of your Policy for cash. We will assess an administrative processing fee equal to the lesser of $25 or 2% of the amount withdrawn. You may direct how you would like us to withdraw a partial surrender and the administrative processing fee from your current value in the Variable Fund Accounts. If you do not specify a withdrawal allocation, we will withdraw the partial surrender and the administrative processing fee from the Variable Fund Accounts in the same proportion as each Account's value has to the total Policy Cash Value. (See "Surrender Charges" and "Deduction of Charges.") You may request a partial surrender by telephone or by Notice to Us. Your Policy's remaining Cash Value after a partial surrender may not be less than an amount equal to the then current surrender charge for a full surrender. Partial surrenders and related surrender charges reduce your Policy's death benefit on a dollar for dollar basis. If the death benefit is the Minimum Amount Insured, your death benefit will be reduced by a multiple of the amount surrendered. Under death benefit Option A, we will reduce the Specified Amount and the Cash Value by the amount of the partial surrender. Under death benefit Option B, we will reduce only the Cash Value portion of the death benefit by the amount of the partial surrender. TELEPHONE TRANSACTIONS - ---------------------- You may submit requests by telephone to change your premium payment allocation, request partial surrenders, request loans, and request Transfer of Value among Variable Fund Accounts. We will employ reasonable procedures to confirm that instructions communicated by telephone are genuine, and only if we do not will we be liable for any losses because of unauthorized or fraudulent instructions. We will obtain information prior to any discussion regarding your Policy including, but not limited to: o your USAA number or Policy number, o your name, and o your Social Security number. In addition, we will record all telephone communications with you and will send confirmations of all transactions to your address. Your Policy automatically authorizes you to make telephone transactions, subject to our right to modify, suspend, or discontinue this telephone transaction privilege at any time without prior notice. When filling out your Policy application, you may decline the option of utilizing the telephone transaction privilege. DOLLAR COST AVERAGING PROGRAM - ------------------------------ The Dollar Cost Averaging Program enables you to make regular, equal investments over time into one or more of the Variable Fund Accounts, by transferring a fixed dollar amount at regular intervals from one or more other Variable Fund Accounts under the Policy. VUL Policy 28 To begin the Dollar Cost Averaging Program, you must have at least $5,000 in the Variable Fund Account from which you intend to transfer value. The minimum amount you may transfer is $100, or the remaining value of the Account, if less. The transfers must be scheduled to occur over a period of at least 12 months at monthly, quarterly, or semiannual intervals, as you elect. You may select this Program by submitting a written request to our Home Office or by making a request by telephone. You may cancel your participation in this Program in the same manner. We will process transfers under the Dollar Cost Averaging Program to be effective at the Accumulation Unit Values (AUV) at the end of the Valuation Period that includes the date of the transfer. No charges apply to transfers made under the Dollar Cost Averaging Program. Also, transfers under this Program do not count against your limit on free transfers. We reserve the right to suspend, terminate, or modify the Dollar Cost Averaging Program upon providing you written notice 30 days in advance. Should we suspend or terminate the Program, the suspension or cancellation will not affect any Policy for which the Dollar Cost Averaging Program is already in effect. POSTPONEMENT OF PAYMENTS - ------------------------ We may postpone payments of partial surrenders, full surrenders, Policy loans, maturity benefits, death benefits, and Variable Fund Account transfers beyond 7 days whenever: o the New York Stock Exchange is closed, o the SEC, by order, permits postponement for the protection of Policy Owners, or o the SEC requires trading to be restricted or declares an emergency. We reserve the right to defer payment of any partial surrenders, full surrenders, Policy loans or refunds that would be derived from a premium payment made by a check until the check has cleared the banking system. - -------------------------------------------------------------------------------- Log on to USAA.COM for policy details, fund account summaries and financial activity information. - -------------------------------------------------------------------------------- MORE POLICY INFORMATION OWNERS AND BENEFICIARIES - ------------------------ OWNERS If you are the Owner of the Policy, the rights and privileges of the Policy during the lifetime of the Insured belong to you. Generally, the Owner is also the Insured, unless a different Owner is designated in the application or at a later date. Successor Owner. As Owner, you may designate a successor Owner. If you die without designating a successor Owner, ownership of the Policy will pass to your estate. Change of Ownership. As Owner, you may change ownership of your Policy, at any time, during the Insured's lifetime, by submitting Notice to Us. The change will take effect on the Date of Receipt of the request. A change of ownership is subject to the rights of an assignee of record and those of any irrevocable Beneficiary. We are not responsible for any payments made or actions taken before we receive your Notice to Us. Collateral Assignment. As Owner, you may assign the Policy as collateral security by submitting a Notice to Us. You will need to obtain the written consent of any irrevocable Beneficiaries and assignees of record before we recognize any assignment; however, a collateral assignment takes precedence over the interest of a revocable Beneficiary. The assignment will take effect as of the date we receive your Notice to Us. We are not responsible for the validity or effect of any collateral assignment, nor are we responsible for any payment or other action taken before we receive the Notice to Us. We are not bound by an assignment until we receive it at our Home Office. We will pay any death benefit payable to an assignee in one lump sum. We will pay any remaining proceeds to the designated Beneficiary or Beneficiaries. A collateral assignee is not an Owner. A collateral assignment is not a transfer of ownership, unless it is an absolute assignment. All collateral assignees of record must consent to any full VUL Policy 29 surrender, partial surrender, loan or payment from a Policy under an Accelerated Benefits for Terminal Illness Rider. There may be unfavorable tax consequences, including recognition of taxable income and the loss of income tax-free treatment for any death benefit payable to the Beneficiary. Therefore, you should consult a qualified tax advisor prior to making an assignment. BENEFICIARIES You may name one or more Beneficiaries in your Policy application. You may classify Beneficiaries as primary, contingent, revocable, or irrevocable. If no primary Beneficiary survives the Insured, we will pay the Policy proceeds to the contingent Beneficiaries. Beneficiaries in the same class will receive equal payments unless you direct otherwise. A Beneficiary must survive the Insured in order to receive his or her share of the death benefit proceeds. If a Beneficiary dies before the Insured dies, his or her unpaid share is divided among the remaining Beneficiaries of the same class who survive the Insured. If no Beneficiary survives the Insured, we will pay the proceeds to you, if you are alive, or, if not, to your estate. Change of Beneficiary. You may change the Beneficiary while the Insured is living, by submitting a Notice to Us. You must obtain the written consent of any irrevocable Beneficiaries before we will accept any change in Beneficiary. A change in Beneficiary will take effect on the Date of Receipt of the request. We will not be responsible for any payment or other action taken before receipt of your Notice to Us. If we make a payment of death benefits in good faith before receiving the Notice to Us, we will receive credit for the payment against our liability under the Policy. A change of Beneficiary is subject to the rights of an assignee of record. CALCULATING YOUR COST OF INSURANCE - ---------------------------------- For each Monthly Anniversary, we determine your monthly cost of insurance by multiplying (1) the net amount at risk under your Policy by (2) your cost of insurance rate, and (3) dividing the resulting amount by 1000. NET AMOUNT AT RISK We determine the net amount at risk by (1) subtracting your Policy's Cash Value on any Monthly Anniversary (prior to the application of the Monthly Deduction, including the Cost of Insurance charge) from (2) your Policy's current death benefit (divided by a factor that discounts the death benefit to the beginning of the month). Your Policy's death benefit may be the death benefit required to qualify the Policy as life insurance. (See "Minimum Amount Insured.") The net amount at risk may be greater if you have selected death benefit Option B rather than death benefit Option A. See "Death Benefits." Since the death benefit payable under Option B is the Specified Amount plus the Cash Value, the difference between the death benefit and the Cash Value will be greater under Option B than under Option A (unless the Minimum Amount Insured applies). As the net amount at risk will be greater, so the cost of insurance also will be greater. The net amount at risk also may be affected by changes in your Policy's Cash Value or in the Specified Amount. (See "Cash Value" and "Death Benefits.") The net amount at risk for each Policy continues to be determined generally by subtracting the Policy's Cash Value from the Policy's death benefit (divided by a factor that discounts the death benefit to the beginning of the month), regardless of whether the death benefit is the Policy's current Specified Amount or the Minimum Amount Insured. The cost of insurance rate applied against the net amount at risk will continue to increase as the Insured's age increases. NET AMOUNT AT RISK - MORE THAN ONE RATE CLASS If you increase the Specified Amount and the rate class applicable to the increase is different from that of the initial Specified Amount, then, in determining the cost of insurance charge, we will calculate the net amount at risk separately for each rate class. The method of determining the net amount at risk for each rate class will differ between Option A and Option B. If Option A is in effect, we will apportion the Cash Value among the initial Specified Amount and any increases in Specified Amount. The Cash Value will first be considered a part of the initial Specified Amount. If the Cash Value is greater than the initial Specified Amount, the balance of the Cash Value will then be considered a part of each increase in Specified Amount, beginning with the first increase. If Option B is in effect, we will determine the net amount at risk by the proportional relationship of the initial Specified Amount and the Specified Amount increases for each new rate class to the total Specified Amount. VUL Policy 30 Because the method of calculating the net amount at risk is different between Option A and Option B when more than one rate class is in effect, a change in the death benefit option may result in a different net amount at risk for each rate class than would have occurred had the death benefit option not been changed. Thus, the total cost of insurance will be increased or decreased. COST OF INSURANCE RATES Your cost of insurance rates are based on the Insured's age, sex, and rate class. Generally, we set cost of insurance rates based on our expectations as to future mortality experience. We apply any changes to cost of insurance rates to all persons of the same age, sex, and rate class. We will give you 30 days' notice before any increase in your current cost of insurance rates becomes effective. We guarantee that your cost of insurance rates will never be greater than the maximum cost of insurance rates shown in your Policy. These guaranteed rates are based on the 1980 Commissioners Standard Ordinary Mortality Table and age on the Insured's last birthday. The rate class of the Insured will affect your cost of insurance rate. USAA Life currently places Insureds into one of three preferred rate classes or into one of two standard rate classes involving higher mortality risks. In an otherwise identical Policy, Insureds in the preferred rate class will have a lower cost of insurance rate than those in a standard rate class. We make all final determinations of an Insured's rate class. MINIMUM AMOUNT INSURED - ---------------------- The Minimum Amount Insured is the amount of insurance proceeds that the Internal Revenue Code requires for your Policy to qualify as life insurance and to exclude the death benefit from your Beneficiary's taxable income. If higher than the death benefit under Option A or Option B, we will pay you the Minimum Amount Insured. You can determine the Minimum Amount Insured by multiplying your Policy's Cash Value (ignoring the amount of any outstanding loan and any unpaid loan interest) by a specified percentage based on the Insured's age. The specified percentages, which generally decline as the Insured gets older, are:
- ---------------------------------------------------------------------------------------------------------------------------------- MINIMUM AMOUNT INSURED AS A PERCENTAGE OF CASH VALUE - ---------------------------------------------------------------------------------------------------------------------------------- INSURED's 40 or 95 and AGE* Under 45 50 55 60 65 70 75 to 90 older PERCENTAGE 250% 215% 185% 150% 130% 120% 115% 105% 100% - ----------------------------------------------------------------------------------------------------------------------------------
* Last birthday at the beginning of the Policy Year. A more complete table appears in your Policy. If, prior to the Insured's death, unexpected increases in your Policy's Cash Value would cause your Policy not to satisfy Internal Revenue Code requirements, we will increase the death benefit to the Minimum Amount Insured so that the death benefit will be excluded from the Beneficiary's taxable income. OTHER INFORMATION USAA LIFE - --------- USAA Life is a stock insurance company incorporated in the State of Texas on June 24, 1963. USAA Life is principally engaged in writing life insurance policies, health insurance policies, and annuity contracts. USAA Life is authorized to transact insurance business in all states of the United States (except New York) and the District of Columbia. On a consolidated basis prepared in conformity with accounting principles generally accepted in the United States of America, USAA Life had total assets of [$] on December 31, 2002. USAA Life is a wholly-owned stock subsidiary of USAA, a diversified financial services organization. The commitments under the Policies are USAA Life's, and USAA has no legal obligation to back those commitments. USAA Life is the depositor administering the Separate Account. USAA Life's obligations as depositor of the Separate Account may not be transferred without notice to and consent of the Owners. USAA Life also issues variable annuity contracts through another separate account, which is also a registered investment company. In addition, USAA Life serves as transfer agent of the USAA Life Investment Trust. VUL Policy 31 SEPARATE ACCOUNT - ---------------- By a resolution of the Board of Directors of USAA Life, we established the Separate Account as a separate account on January 20, 1998. The Separate Account is organized as a unit investment trust and registered with the SEC under the Investment Company Act of 1940. Registration does not involve supervision of the management of the Separate Account by the SEC. The assets of the Separate Account are the property of USAA Life and are held for the benefit of the Owners and other persons entitled to payments under Policies issued through the Separate Account. The assets of the Separate Account equal to the reserves and other liabilities of the Separate Account are not chargeable with liabilities that arise from any other business which USAA Life may conduct. USAA Life is obligated to pay all amounts promised to Policy owners under the Policies. The Separate Account is divided into Variable Fund Accounts, each representing a different investment objective. Net Premium Payments are allocated to the Variable Fund Accounts in accordance with your instructions. (See "Investment Options.") Each Variable Fund Account invests exclusively in the shares at the Net Asset Value (NAV) of a Fund. Income and gains and losses from assets in each Variable Fund Account are credited to, or charged against, that Variable Fund Account without regard to income, gains, or losses in the other Variable Fund Accounts. TAX MATTERS - ----------- The following is a discussion of certain federal income tax matters affecting your ownership of a Policy. The discussion is general in nature, does not purport to be complete or to cover all situations, and should not be considered tax advice, for which you should consult a qualified tax advisor. The particular situation of each Owner or Beneficiary will determine how ownership or receipt of Policy proceeds will be treated for purposes of the federal estate tax, state inheritance tax and other taxes. TAXATION OF POLICY PROCEEDS The following discussion is based on current federal tax law and interpretations. It assumes that the Owner is a natural person who is a U.S. citizen and resident. The tax effects on non-U.S. residents or non-U.S. citizens may be different. General. A Policy will be treated as a "life insurance contract" for federal tax purposes (a) if it meets the definition thereof under Section 7702 of the Internal Revenue Code (the "Code") and (b) for as long as the investments made by the underlying Funds in which Premium Payments under the Policy are invested satisfy certain investment diversification requirements under Section 817(h) of the Code. We believe that the Policies will meet these requirements and that: o the death benefit received by the Beneficiary under your Policy will not be subject to federal income tax; and o increases in your Policy's Cash Value as a result of investment experience will not be subject to federal income tax unless and until there is a distribution from your Policy, such as a surrender or a partial surrender. The federal tax consequences of a distribution from or loan under your Policy can be affected by whether your Policy is determined to be a "modified endowment contract ("MEC")" (which is discussed below). In all cases, however, the character of all income that is described below as taxable to the payee will be ordinary income (as opposed to capital gain). Testing for modified endowment contract (MEC) status. Your Policy will be a MEC if, at any time during the first seven Policy Years, you have paid a cumulative amount of premiums that exceeds the premiums that would have been paid by that time under a similar fixed-benefit insurance policy that was designed (based on certain assumptions mandated under the Code) to provide for paid-up future benefits after the payment of seven level annual premiums. This is called the "seven-pay" test. Whenever there is a "material change" under a Policy, the Policy will generally be (1) treated as a new contract for purposes of determining whether the Policy is a MEC and (2) subject to a new seven-pay period and a new seven-pay limit. The new seven-pay limit would be determined taking into account, under a prescribed formula, the accumulation value of the Policy at the time of such change. A materially changed Policy would be considered a MEC if it failed to satisfy the new seven-pay limit. A material change for these purposes could occur as a result of a VUL Policy 32 change in death benefit option, the selection of additional rider benefits, an increase in your Policy's Specified Amount of coverage, and certain other changes. If your Policy's benefits are reduced during the first seven Policy Years (or within seven years after a material change), the calculated seven-pay premium limit will be redetermined based on the reduced level of benefits and applied retroactively for purposes of the seven-pay test. (Such a reduction in benefits could include, for example, a decrease in the Specified Amount you request or, in some cases, a partial surrender or termination of additional benefits under a rider.) If the premiums previously paid are greater than the recalculated seven-pay premium level limit, the Policy will become a MEC. A life insurance policy that is received in exchange for a MEC will also be considered a MEC. Other effects of Policy changes. Changes made to your Policy (for example, a decrease in benefits or a lapse or reinstatement of your Policy) may have other effects on the Policy. Such effects may include impacting the maximum amount of premiums that can be paid under your Policy, as well as the maximum amount of accumulation value that may be maintained under your Policy. Taxation of pre-death distributions if your Policy is not a modified endowment contract (MEC). As long as your Policy remains in force during the Insured's lifetime as a non-MEC, a Policy loan will be treated as Indebtedness and not a distribution, and no part of the loan proceeds will be subject to current federal income tax. Interest on the loan generally will not be tax deductible. After the first 15 Policy Years, the proceeds from a partial surrender will be subject to federal income tax only to the extent they exceed your "basis" in your Policy. (Your basis generally will equal the premiums you have paid, less the amount of any previous distributions from your Policy that were not taxable.) During the first 15 Policy Years, the proceeds from a partial surrender or a reduction in insurance coverage could be subject to federal income tax, under a complex formula, to the extent that your Cash Value exceeds your basis in your Policy. On the Maturity Date or upon full surrender, any excess of the proceeds we pay (including amounts we use to discharge any Policy loan) over your basis in the Policy will be subject to federal income tax. In addition, if a Policy terminates after a grace period while there is a Policy loan, the cancellation of such loan and accrued loan interest will be treated as a distribution and could be subject to tax under the above rules. Finally, if you make an assignment of rights or benefits under your Policy, you may be deemed to have received a distribution from the Policy, all or part of which may be taxable. Taxation of pre-death distributions if your Policy is a modified endowment contract (MEC). If your Policy is a MEC, any distribution from your Policy during the Insured's lifetime will be taxed on an "income-first" basis. Distributions for this purpose include (1) loan proceeds (including any increase in the loan amount to pay interest on an existing loan or an assignment or a pledge to secure a loan) or (2) partial surrender. Any such distributions will be considered taxable income to you to the extent your Cash Value exceeds your basis in the Policy. (For MECs, your basis is similar to the basis described above for other Policies, except that it also would be increased by the amount of any prior loan under your Policy that was considered taxable income to you.) For purposes of determining the taxable portion of any distribution, all MECs issued by the same insurer (or its affiliate) to the same owner (excluding certain qualified plans) during any calendar year are aggregated. The U.S. Treasury Department has authority to prescribe additional rules to prevent avoidance of "income-first" taxation on distributions from MECs. A 10% penalty will apply to the taxable portion of most distributions from a Policy that is a MEC. The penalty will not, however, apply to distributions (1) to taxpayers 59 1/2 years of age or older, (2) in the case of a "disability" (as defined in the Code), or (3) received as part of a series of substantially equal periodic annuity payments for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his or her Beneficiary. If your Policy terminates after a grace period while there is a Policy loan, the cancellation of such loan will be treated as a distribution to the extent not previously treated as such and could be subject to federal income tax, including the 10% penalty, as described above. In addition, on the Maturity Date and upon a full surrender, any excess of the proceeds we pay (including any amounts we use to discharge any loan) over your basis in the Policy will be subject to federal income tax and, unless an exception applies, the 10% penalty. Distributions that occur during a Policy Year in which your Policy becomes a MEC, and during any subsequent Policy Years, will be taxed as described in the two preceding paragraphs. In addition, distributions from a Policy within two years before it becomes a MEC also will be subject to tax in this manner. This means that a distribution VUL Policy 33 made from a Policy that is not a MEC could later become taxable as a distribution from a MEC. The Treasury Department has been authorized to prescribe rules that would treat similarly other distributions made in anticipation of a Policy becoming a MEC. Policy lapses and reinstatements. A Policy that has lapsed may have the tax consequences described above, even though you may be able to reinstate that Policy. For tax purposes, some reinstatements may be treated as the purchase of a new life insurance contract. Terminal illness rider. Amounts received under an insurance policy on the life of an individual who is "terminally ill," as defined by the Code, are generally excludable from the payee's gross income. We believe that the benefits provided under our terminal illness rider meet the Code's definition of terminally ill and can qualify for this income tax exclusion. This exclusion does not apply, however, to amounts paid to someone other than the Insured, if the payee has an insurable interest in the Insured's life because the Insured is a director, officer or employee of the payee or by reason of the Insured's being financially interested in any trade or business carried on by the payee. Diversification. Under Section 817(h) of the Code, the Treasury Department has issued regulations that implement investment diversification requirements for insurance company separate accounts - for these purposes, each Variable Fund Account is treated as a separate account. Failure to comply with these regulations would disqualify your Policy as a life insurance contract for federal tax purposes. If this occurred, you would be subject to federal income tax on the income under the Policy for the period of the disqualification and all subsequent periods. Each Variable Fund Account, through the underlying Fund in which it invests, intends to continue to comply with these requirements. In connection with the issuance of the diversification regulations in 1986, the Treasury Department stated that guidance would be provided concerning the circumstances in which an insurance policy owner's control of a separate account's investments may cause that owner, rather than the insurance company, to be treated as owning the assets in the account. If you (rather than USAA Life) were considered the owner of the Separate Account's assets attributable to your Policy, income and gains from the account would be included in your gross income currently for federal income tax purposes. USAA Life reserves the right to amend the Policies in any way necessary to avoid any such result. As of the date of this Prospectus, no such guidance has been issued, although the Treasury Department has informally indicated that any such guidance could limit the number of investment funds or the frequency of transfers among such funds. These guidelines may apply only prospectively, although retroactive application is possible if such standards are considered not to embody a new position. Federal estate and generation-skipping taxes. If the Insured is the Policy Owner, the death benefit under the Policy will be includable in the Owner's estate for federal estate tax purposes. If the Owner is not the Insured, under certain conditions only an amount approximately equal to the cash surrender value of the Policy would be so includable. In general, taxable estates of less than $1,000,000 for decedents dying during 2003 (increasing incrementally to $3,500,000 in 2009) ("exclusion amount") will not incur a federal estate tax liability. In addition, an unlimited marital deduction is available for federal estate tax purposes. As a general rule, if a "transfer" of property is made to a person two or more generations younger than the donor, a federal tax is payable at rates similar to the maximum federal estate tax rate in effect at the time. The generation- skipping tax provisions generally apply to "transfers" that would be subject to the federal estate tax rules. Individuals are generally allowed an aggregate generation-skipping tax exemption of $1,100,000 for 2003, and thereafter an exemption equal to the exclusion amount. Because these rules are complex, you should consult with a qualified tax advisor for specific information, especially where benefits are passing to younger generations. If the Owner of the Policy is not the Insured, and the Owner dies before the Insured, the value of the Policy, as determined for federal estate tax purposes, is includable in the federal gross estate of the Owner for those purposes. Pension and profit-sharing plans. If Policies are purchased by a trust that forms part of a pension or profit-sharing plan qualified under Section 401(a) of the Code (a "plan") for the benefit of participants covered under the plan, the federal income tax treatment of such Policies will be somewhat different from that described above. If insurance is purchased for a participant as part of a plan, the reasonable net annual premium cost for such insurance is treated as ordinary income to the participant. The amount so treated is the lower of the IRS "P.S. 58" VUL Policy 34 table cost or the life insurance company's actual rates for standard risks. If the plan participant dies while covered by the plan and the Policy proceeds are paid to the participant's Beneficiary, then the excess of the death benefit over the Policy's Cash Value will not be subject to federal income tax. However, the Policy's Cash Value will generally be taxable to the extent it exceeds the participant's cost basis in the Policy, which will generally include the costs of insurance previously taxable as income to the participant. Special rules may apply if the participant had borrowed from the Policy or was an owner-employee under the plan. There are limits on the amounts of life insurance that may be purchased on behalf of a participant in a plan. Complex rules, in addition to those discussed above, apply whenever life insurance is purchased by a plan. You should consult a qualified tax advisor. Other employee benefit programs. Complex rules may also apply when a Policy is held by an employer or a trust, or acquired by an employee, in connection with the provision of other employee benefits. These Policy Owners must consider whether the Policy was applied for by or issued to a person having an insurable interest under applicable state law and with the Insured person's consent. The lack of an insurable interest or consent may, among other things, affect the qualification of the Policy as life insurance for federal tax purposes and the right of the Beneficiary to receive a death benefit. ERISA. Employers and employer-created trusts may be subject to reporting, disclosure and fiduciary obligations under the Employee Retirement Income Security Act of 1974. You should consult a qualified legal advisor. When we withhold income taxes. Generally, unless you provide us with an election to the contrary before we make the distribution, we are required to withhold income tax from any proceeds we distribute as part of a taxable transaction under your Policy. In some cases, where generation-skipping taxes may apply, we may also be required to withhold for such taxes unless we are provided satisfactory written notification that no such taxes are due. Tax changes. The U.S. Congress frequently considers legislation that, if enacted, could change the tax treatment of life insurance policies. In addition, the Treasury Department may amend existing regulations, issue regulations on the qualification of life insurance and MECs, or adopt new interpretations of existing law. State and local tax laws or, if you are not a U.S. citizen or resident, foreign tax laws, may also affect the tax consequences to you, the Insured, or your Beneficiary, and are subject to change. Any changes in federal, state, local, or foreign tax law or interpretation could have a retroactive effect. We suggest you consult a qualified tax advisor. TAXATION OF USAA LIFE USAA Life is taxed as a life insurance company under the Code. USAA Life does not initially expect to incur any federal income tax liability on the earnings or the realized capital gains attributable to any Variable Fund Account. If, in the future, USAA Life determines that a Variable Fund Account may incur federal income tax, then we may assess a charge against the Variable Fund Accounts for that tax. Any charge will reduce the Policy's Cash Value. We may have to pay state, local, or other taxes in addition to applicable taxes based on premiums. At present, these taxes are not substantial. If they increase, we may make charges for such taxes when they are attributable to the Separate Account or allocable to the Policies. LEGAL PROCEEDINGS - ----------------- USAA LIFE, LIKE OTHER LIFE INSURANCE COMPANIES, IS INVOLVED IN LAWSUITS, INCLUDING CLASS ACTION LAW SUITS. IN SOME CLASS ACTION AND OTHER LAWSUITS INVOLVING INSURERS, SUBSTANTIAL DAMAGES HAVE BEEN SOUGHT AND/OR MATERIAL SETTLEMENT PAYMENTS HAVE BEEN MADE. ALTHOUGH THE OUTCOME OF ANY LITIGATION CANNOT BE PREDICTED WITH CERTAINTY, USAA LIFE BELIEVES THAT, AS OF THE DATE OF THIS PROSPECTUS, THERE ARE NO PENDING OR THREATENED LAWSUITS THAT WILL HAVE A MATERIALLY ADVERSE IMPACT ON USAA LIFE OR THE SEPARATE ACCOUNT. FINANCIAL STATEMENTS - -------------------- The financial statements for the Separate Account and USAA Life appear in the SAI. To obtain a copy of the SAI, call us at 1-800-531-2923. VUL Policy 35 You should consider our financial statements only as bearing on our ability to meet our obligations under the Contracts. Our financial statements do not bear on the investment performance of the Separate Account. DEFINITIONS IN THIS PROSPECTUS: - ------------------- ACCUMULATION UNIT or UNIT means an accounting unit of measure that we use to calculate values in each Variable Fund Account. The value of one unit is known as the Accumulation Unit Value ("AUV"). ADMINISTRATIVE CHARGE means a monthly charge deducted from the Policy's Cash Value during the first Policy Year only. The Administrative Charge compensates us for the start-up expenses we incur in issuing the Policy. The Administrative Charge is shown on the Policy Information Page. ANNIVERSARY means the same date each succeeding year as the Effective Date of the Policy. ANNUAL TARGET PREMIUM PAYMENT means an annual amount of premium payment that we establish when we issue your Policy. It is shown on the Policy Information Page. We use it to determine whether a premium charge will be deducted from premium payments, whether a surrender charge is imposed on a full surrender, and whether the Guaranteed Death Benefit applies. BENEFICIARY means the person or entity designated to receive the death benefit upon the Insured's death. CASH SURRENDER VALUE means your Policy Cash Value less the surrender charge, if any, payable on full surrender of your Policy. CASH VALUE, on the Effective Date, means the Net Premium less the Monthly Deduction for the following month. Thereafter, on any Valuation Date, Cash Value means the sum of: o your Policy's value that you invest in the Variable Fund Accounts; o plus, if applicable, any value that is held in USAA Life's general account to secure any Policy loan; o plus any interest earnings we credit on the value held in the general account; o less the amount of any outstanding loan including any unpaid loan interest; and o less any Monthly Deductions, transfer charges, and partial surrender charges we apply through that date. DATE OF RECEIPT means the date we actually receive the item at our Home Office, subject to two exceptions: o IF WE RECEIVE THE ITEM ON A DATE OTHER THAN A VALUATION DATE, THE DATE OF RECEIPT WILL BE THE FOLLOWING VALUATION DATE; AND o if we receive the item on a Valuation Date after close of regular trading of the New York Stock Exchange, the Date of Receipt will be the following Valuation Date. DEATH BENEFIT means the benefit we pay in accordance with the death benefit option in effect on the Insured's death (1) reduced by any Indebtedness and any due and unpaid Monthly Deductions; and (2) increased by any optional insurance benefits provided by rider. DEATH BENEFIT OPTION means one of the two death benefit options that the Policy provides, namely, Option A and Option B. Option A is the greater of the current Specified Amount or the Minimum Amount Insured. Option B is the greater of the current Specified Amount, plus the Policy's Cash Value, or the Minimum Amount Insured. EFFECTIVE DATE means the date we approve the application and issue your Policy or the date we approve any increase in Specified Amount under your Policy. The Effective Date is shown on the Policy Information Page. FREE LOOK PERIOD means the period of time required by state law during which you may return the Policy for cancellation and receive a refund. The Free Look Period is shown on the Policy Information Page. You may cancel your Policy within 10 days of receipt (or a longer period depending on where you reside). Your initial premium VUL Policy 36 payment allocated to any of the Variable Fund Accounts is invested in the Vanguard Money Market Portfolio Variable Fund Account during the Free Look Period plus 5 calendar days. (See "Free Look Right.") FUND means an investment portfolio that has specific investment objectives and policies and is offered by a mutual fund. GUARANTEED DEATH BENEFIT means that if you pay a sufficient amount of premium, we guarantee your Policy will not lapse during the first 5 Policy Years. HOME OFFICE means USAA Life Insurance Company, USAA Building, 9800 Fredericksburg Road, San Antonio, Texas 78288. INDEBTEDNESS means the sum of all unpaid Policy loans and any unpaid accrued interest due on such loans. INSURED means the person whose life is insured. The Insured is identified on the Policy Information Page. The Insured may or may not be the Owner. LAPSE means your Policy has terminated because of insufficient Cash Value from which to deduct the Monthly Deduction and any loan interest then due. No insurance coverage exists when your Policy has lapsed. MAINTENANCE CHARGE means a monthly charge that we deduct from the Policy's Cash Value. The Maintenance Charge compensates us for recurring administrative expenses related to the maintenance of the Policy and the Separate Account. The Maintenance Charge is shown on the Policy Information Page. MATURITY DATE means the date that we will pay your Policy's Cash Value to you, as long as the Policy has not terminated because of lapse, full surrender, or the Insured's death. The Maturity Date is shown on the Policy Information Page. MONTHLY ANNIVERSARY means the same date of each succeeding month as the Effective Date of your Policy. MONTHLY DEDUCTION means a charge we make under your Policy each month against the Policy's Cash Value. The charge is equal to: o the cost of insurance and any riders; plus o the Administrative Charge that is applied during the first 12 months that the Policy is in effect; plus o the Maintenance Charge. MINIMUM AMOUNT INSURED means the minimum amount of life insurance required by the Internal Revenue Code to qualify your Policy as life insurance and to exclude the death benefit from a Beneficiary's taxable income. NET ASSET VALUE ("NAV") means the current value of each Fund's total assets, less all liabilities, divided by the total number of shares outstanding. NET PREMIUM PAYMENT means the amount of a premium payment less the Policy's premium charge. NOTICE TO US means your signed statement that we receive at our Home Office and that is in a form satisfactory to us. OWNER means the person to whom we owe the rights and privileges of the Policy. POLICY INFORMATION PAGE means the page that identifies certain information about the Policy and specifies certain terms of the Policy. POLICY YEAR means a period of 12 calendar months starting with the Effective Date of the Policy, and each 12-month period thereafter. For example, if your Policy was issued on July 15, your first Policy Year would end on the following July 14. Each subsequent Policy Year would start on July 15 and end on July 14. PREMIUM CHARGE means an amount that we deduct from premium payments to compensate us for sales charges and taxes related to the Policy. VUL Policy 37 SEPARATE ACCOUNT means the Life Insurance Separate Account of USAA Life Insurance Company. The Separate Account is an investment account established under Texas law through which we invest the Net Premium Payments we receive for investment in the Variable Fund Accounts under the Policy. The Separate Account is divided into subdivisions called the Variable Fund Accounts. Each Variable Fund Account invests the Net Premium Payments allocated to it in a particular Fund. We own the assets of the Separate Account. To the extent that the assets are equal to the reserves and other contractual liabilities, they are not chargeable with liabilities arising out of any other business of ours. We credit or charge the income, gains, and losses, realized or unrealized, from the assets of the Separate Account to or against the Separate Account without regard to our other income, gains or losses. We registered the Separate Account as an investment company under federal securities law. SPECIFIED AMOUNT means the minimum death benefit payable as long as the Policy is in effect. It is also the amount of life insurance we issue. The specified amount is shown on the Policy Information Page. SURRENDER CHARGE means an amount that we may deduct from your Policy's Cash Value if you surrender your Policy in full. VALUATION DATE means any business day, Monday through Friday, on which the New York Stock Exchange is open for regular trading, except o any day on which the value of the shares of a Fund is not computed, or o any day during which no order for the purchase, surrender or transfer of Accumulation Units is received. VALUATION PERIOD means the period of time from the end of any Valuation Date to the end of the next Valuation Date. VARIABLE FUND ACCOUNT means a subdivision of the Separate Account in which you may invest Net Premium Payments. The Policy provides several Variable Fund Accounts. Each Variable Fund Account corresponds to a particular Fund. Net Premium Payments that you allocate to a Variable Fund Account are invested in a particular Fund. We also refer to the Variable Fund Accounts as Accounts in this Prospectus. WE, OUR, US, OR USAA LIFE means USAA Life Insurance Company. YOU, YOUR OR YOURS refers to the Owner of the Policy. VUL Policy 38 STATEMENT OF ADDITIONAL INFORMATION - ----------------------------------- A Statement of Additional Information, with the same date as this prospectus, containing further information about the Life Insurance Separate Account of USAA Life Insurance Company and the Variable Universal Life Insurance Policy is available from us upon request. It has been filed with the SEC and is incorporated by reference into this prospectus. In addition, you may order a personalized illustration of death benefits, cash surrender values, and Cash Values, without charge, from us. To request a Statement of Additional Information, a personalized illustration or any information about your Policy call us at 1-800-531-2923 or write to us at 9800 Fredericksburg Road, San Antonio, TX 78288. Information about the Life Insurance Separate Account of USAA Life Insurance Company (including the Statement of Additional Information) can be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC or at the SEC's website, http://www.sec.gov. Copies of this information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the Commission, 450 Fifth Street, NW, Washington, DC, 20549-0102. You can also call the SEC at 1-202-942-8090. We have not authorized anyone to give any information or make any representations other than those contained in this Prospectus, the Statement of Additional Information or other material filed with the SEC (or any sales literature we approve) in connection with the offer of the Policies described in this prospectus. You may not rely on any such information or representations, if made. This Prospectus does not constitute an offer in any jurisdiction to any person to whom such offer would be unlawful. The table of contents for the Statement of Additional Information is as follows: Additional Information About Operation of Policies and Separate Account Special Considerations State Regulation of USAA Life Underwriters Performance Data Legal Matters Independent Auditors Financial Statements Appendix A - Hypothetical Illustration Investment Company Act File Number 811-08625 VUL Policy 39 Life Insurance Separate Account of USAA Life Insurance Company (Registrant) USAA Life Insurance Company (Depositor) 9800 Fredericksburg Road San Antonio, Texas 78288 1-800-531-2923 STATEMENT OF ADDITIONAL INFORMATION VARIABLE UNIVERSAL LIFE INSURANCE POLICY May 1, 2003 This Statement of Additional Information ("SAI") contains additional information regarding the Variable Universal Life Insurance Policy (the "Policy") offered by USAA Life Insurance Company. This SAI is not a prospectus, and should be read together with the prospectus for the Policy dated May 1, 2003 and the prospectuses for the Funds. You may obtain a copy of these prospectuses by calling us at 1-800-531-2923 or by writing to us at the address above. ================================================================================ TABLE OF CONTENTS ADDITIONAL INFORMATION ABOUT OPERATION OF POLICIES AND SEPARATE ACCOUNT..... 2 The Policies............................................................. 2 Incontestability......................................................... 2 Misstatement of Age or Sex............................................... 2 Suicide Exclusion........................................................ 2 Nonparticipating Policy.................................................. 3 Reports and Records...................................................... 3 SPECIAL CONSIDERATIONS...................................................... 3 STATE REGULATION OF USAA LIFE............................................... 3 UNDERWRITERS................................................................ 4 PERFORMANCE DATA............................................................ 4 LEGAL MATTERS............................................................... 5 INDEPENDENT AUDITORS........................................................ 5 FINANCIAL STATEMENTS........................................................ 5
Appendix A - Hypothetical Illustration VUL SAI 1 ADDITIONAL INFORMATION ABOUT OPERATION OF POLICIES AND SEPARATE ACCOUNT - ----------------------------------------------------------------------- THE POLICIES The Policy is a legal contract between you and us. The consideration for issuing the Policy is: o completion of the application, and o payment of the first full premium. The entire contract consists of: o your Policy, o your Policy application, and o any supplemental applications, riders, endorsements, and amendments. WE WILL CONSIDER STATEMENTS IN THE APPLICATION AS REPRESENTATIONS AND NOT WARRANTIES. WE WILL NOT USE ANY REPRESENTATION TO VOID YOUR POLICY OR DEFEND A CLAIM UNDER YOUR POLICY UNLESS IT IS CONTAINED IN YOUR WRITTEN APPLICATION OR SUPPLEMENTAL APPLICATION. ONLY THE PRESIDENT OR SECRETARY OF USAA LIFE HAS AUTHORITY TO CHANGE OR WAIVE A PROVISION OF YOUR POLICY, AND THEN ONLY IN WRITING. All requests for changes to your Policy must be clear and in writing, and must be received by our Home Office. This Policy is subject to the laws of the state where it is issued. To the extent that the Policy may not comply, it will be interpreted and applied to comply. INCONTESTABILITY We will not contest a Policy, or any increase in Specified Amount, except for lapse or fraud, after the Policy or increase has been in effect during the Insured's lifetime for 2 years. Each increase in the Specified Amount will have its own 2-year contestable period beginning with the Effective Date of the increase. During any 2-year contestable period, we have the right to contest the validity of your Policy based on material misstatements made in the application or any supplemental application. The 2-year contestable period begins on the Effective Date of your Policy, or, in the case of an increase, on the date the increase is approved and made effective. If your Policy is reinstated after lapse, a new 2-year contestable period begins on the date of reinstatement. If the Policy has been in force for 2 years during the lifetime of the Insured, it will be contestable only as to statements made in the reinstatement application. If the Policy has been in force for less than 2 years, it will be contestable as to statements made in any reinstatement applications as well as the initial application. The incontestability provisions do not apply to optional insurance benefits added to your Policy by rider. Each rider contains its own incontestability provision. If we contest and rescind your Policy, you will receive your premiums paid, less any Indebtedness and any previous partial surrenders. MISSTATEMENT OF AGE OR SEX Age means the Insured's age on his or her last birthday. If the Insured's age or sex has been misstated on the application or any supplemental application, we will adjust the Cash Value and death benefit to those based on the correct Monthly Deductions, based on the correct age or sex, since the Policy's Effective Date. SUICIDE EXCLUSION Your Policy does not cover suicide by the Insured, while sane or insane, during an exclusion period after the Policy's Effective Date. This exclusion period is generally 2 years from the Policy's Effective Date but may vary by state. If the Insured commits suicide during this period, our sole liability will be to refund all premiums paid, less any Indebtedness and previous partial surrenders. We will not pay any death benefit in those circumstances. If your Policy lapses and is later reinstated, we will measure the 2-year suicide exclusion period from the Effective Date of reinstatement. If you increase your Policy's Specified Amount, we will measure the 2-year suicide exclusion period for the increase from the increase's Effective Date. If the Insured dies as a result of suicide (whether sane or insane) during the separate 2-year suicide exclusion period, we will only pay the death benefit attributable to the initial Specified Amount (on which the 2-year suicide exclusion period has expired). We will refund the premium payments less any Indebtedness and any partial surrenders attributable to the increase in the Specified Amount. VUL SAI 2 NONPARTICIPATING POLICY YOUR POLICY IS "NONPARTICIPATING," WHICH MEANS YOU WILL NOT SHARE IN ANY OF OUR PROFITS OR SURPLUS EARNINGS. WE WILL NOT PAY DIVIDENDS ON YOUR POLICY. REPORTS AND RECORDS We will maintain all records relating to the Policy and the Separate Account. We will mail to you a Policy annual statement showing: o the amount of death benefit; o the Cash Value; o any Indebtedness; o any loan interest charge; o any loan repayment since the last annual statement; o any partial surrender since the last annual statement; o all premium payments since the last annual statement; o all deductions and charges since the last annual statement; and o other pertinent information required by any applicable law or regulation, or that we deem helpful to you. We will mail the statement within 30 days after the Policy's anniversary, or, at our discretion, within 30 days after the end of each calendar year showing information as of a date not more than 60 days prior to the mailing of the annual statement. We also will send you periodic reports for the Funds that correspond to the Variable Fund Accounts, periodic reports for the Separate Account, and any other information, as required by state and federal law. We will mail confirmation notices (or other appropriate notification) promptly at the time of the following transactions: o Policy issue; o receipt of premium payments; o transfers among Variable Fund Accounts; o change of premium allocation; o change of death benefit option; o increases or decreases in Specified Amount; o partial surrenders; o receipt of loan repayments; and o reinstatement. SPECIAL CONSIDERATIONS - ---------------------- The Funds managed by the Vanguard Group, Fidelity Management & Research Company, Deutsche Investment Management Americas, Fred Alger Management, Barrow Hanley Mewhinney & Strauss, Granahan Investment Management, Grantham Mayo Van Otterloo & Co., Schroder Investment Management, Marsico Capital Management, MFS Investment Management, and Wellington Management may offer shares to separate accounts of unaffiliated life insurance companies to fund benefits under variable annuity contracts and variable life insurance policies. The Funds managed by USAA Investment Management Company ("USAA IMCO") offer shares only to our separate accounts to fund benefits under the Policies and the variable annuity contracts that we offer. The boards of directors or trustees of these Funds monitor for possible conflicts among separate accounts buying shares of the Funds. Conflicts could develop for a variety of reasons. For example, differences in treatment under tax and other laws or the failure by a separate account to comply with such laws could cause a conflict. To eliminate a conflict, a Fund's board of directors or trustees may require a separate account to withdraw its participation in a Fund. A Fund's Net Asset Value (NAV) could decrease if it had to sell investment securities to pay redemption proceeds to a separate account withdrawing because of a conflict. STATE REGULATION OF USAA LIFE - ----------------------------- USAA Life, a stock life insurance company organized under the laws of Texas, is subject to regulation by the Texas Department of Insurance. An annual statement is filed with the Texas Department of Insurance on or before March 1st of each year covering the operations and reporting on the financial condition of USAA Life as of December 31 of the preceding year. Periodically, the Commissioner of Insurance examines the liabilities and reserves of USAA Life and the Separate Account and certifies their adequacy. VUL SAI 3 In addition, USAA Life is subject to the insurance laws and regulations of all other states and jurisdictions where it is licensed. Generally, the Insurance Department of any other state applies the laws of the state of Texas in determining USAA Life's permissible investments. UNDERWRITERS - ------------ We intend to sell the Policy in all states in which we are licensed and the District of Columbia. USAA IMCO, located at 9800 Fredericksburg Road, San Antonio, Texas 78288, is the principal underwriter distributing the Policy. USAA IMCO, a Delaware corporation, organized in May 1970, is registered with the SEC under the Securities Exchange Act of 1934 as a broker-dealer and is an active member of the National Association of Securities Dealers, Inc. USAA IMCO is a wholly owned subsidiary of USAA and is an affiliate of USAA Life. The Policy will be sold by licensed life insurance sales representatives who are also registered representatives of USAA IMCO. These licensed insurance sales representatives are salaried employees of USAA Life and receive neither direct nor indirect commissions nor any renewal commissions from the sale of the Policies. The Policies are sold and premium payments are accepted on a continuous basis. USAA IMCO serves as principal underwriter for the Policies pursuant to an amended and restated Distribution and Administration Agreement with USAA Life dated March 30, 1998. Pursuant to this agreement, USAA Life bears the cost of the salaries of the sales representatives who sell the Policies and substantially all other distribution expenses of the Policies. The agreement terminates upon its assignment or upon at least 60 days notice by either party. USAA IMCO serves as both principal underwriter and investment adviser for the following registered investment companies: USAA Tax Exempt Fund, Inc., USAA Investment Trust, USAA State Tax-Free Trust, USAA Mutual Fund, Inc., and USAA Life Investment Trust. In addition, USAA IMCO serves as principal underwriter for the Separate Account of USAA Life, a registered investment company. PERFORMANCE DATA - ---------------- From time to time, we may quote performance information for the Variable Fund Accounts of the Separate Account in advertisements, sales literature, or reports to Owners or prospective investors. We may quote performance information in any manner permitted under applicable law. We may, for example, present such information as a change in a hypothetical Owner's Cash Value or death benefit. We also may present the yield or total return of the Variable Fund Accounts based on a hypothetical investment in a Policy. The performance information shown may cover various periods of time, including periods beginning with the commencement of the operations of the Variable Fund Account or the Fund in which it invests. The performance information shown may reflect the deduction of only some of the applicable charges to the Policy. We may, for example, exclude the deduction of one or more charges, such as the premium charge or surrender charge, and we generally expect to exclude cost of insurance charges because of the individual nature of these charges. The "yield" of a Variable Fund Account refers to the income generated by an investment in the Variable Fund Account over the period specified in the advertisement, excluding realized and unrealized capital gains and losses in the corresponding fund's investments. This income is then "annualized" and shown as a percentage of the investment. We also may advertise the "effective yield" of the Vanguard Money Market Portfolio Variable Fund Account, which is calculated similarly, but, when annualized, the income earned by an investment in the Vanguard Money market Portfolio Variable Fund Account is assumed to be reinvested. The "effective yield" will be slightly higher than the "yield" because of the compounding effect of this assumed reinvestment. The "total return" of a Variable Fund Account is the total change in value of an investment in the Variable Fund Account over a period of time specified in the advertisement. "Average annual total return" is the rate of return that would produce that change in value over the specified period, if compounded annually. "Cumulative total return" is the total return over the entire specified period expressed as a percentage. Neither yield nor total return figures reflect deductions for Policy charges such as the premium charge, surrender charges, administrative and maintenance fees, and cost of insurance charges. Yield and total return figures would be lower if Policy charges were included. We may compare a Variable Fund Account's performance to that of other variable life separate accounts or investment products, as well as to generally accepted indices or analyses, such as those provided by research firms and rating services. In addition, we may use performance ratings that may be reported periodically in financial publications, such as Money Magazine, Forbes, Business Week, Fortune, Financial Planning, and The Wall Street VUL SAI 4 Journal. We also may advertise ratings of USAA Life's financial strength or claims-paying ability as determined by firms that analyze and rate insurance companies and by nationally recognized statistical rating organizations. We may from time to time provide advertisements, sales literature or tools to assist you in choosing your investment options by defining your asset allocation strategy and appropriate risk tolerance. Performance information for any Variable Fund Account reflects the performance of a hypothetical Policy and are not illustrative of how actual investment performance would affect the benefits under your Policy. Therefore, you should not consider such performance information to be an estimate or guarantee of future performance. LEGAL MATTERS - ------------- The firm of Kirkpatrick & Lockhart LLP, Washington, D.C., has advised USAA Life on certain federal securities law matters. All matters of Texas law pertaining to the Policy, including the validity of the Policy and USAA Life's right to issue the Policy under Texas insurance law, have been passed upon by Cynthia A. Toles, Vice President and Assistant Secretary of USAA Life. INDEPENDENT AUDITORS - -------------------- The audited financial statements and financial highlights of the Separate Account as of December 31, 2002, and for each of the years or periods presented, and the audited consolidated financial statements of USAA Life Insurance Company and its subsidiaries as of December 31, 2002 and 2001, and for each of the years in the three-year period ended December 31, 2002, are included in this SAI or will be included in an amendment to this SAI. The information has been audited by KPMG LLP, independent certified public accountants, through their offices located at 112 E. Pecan, Suite 2400, San Antonio, Texas 78205. FINANCIAL STATEMENTS - -------------------- VUL SAI 5 INDEPENDENT AUDITORS' REPORT TO THE BOARD OF DIRECTORS OF USAA LIFE INSURANCE COMPANY AND POLICYOWNERS OF THE LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY: We have audited the accompanying statements of assets and liabilities as of December 31, 2002, the related statements of operations, the statements of changes in net assets, and financial highlights presented in note 6 for each of the years or periods presented, for the 18 variable fund accounts available within the Life Insurance Separate Account of USAA Life Insurance Company: USAA Life Growth and Income, USAA Life Aggressive Growth, USAA Life World Growth, USAA Life Diversified Assets, USAA Life Income, Vanguard Diversified Value Portfolio, Vanguard Equity Index Portfolio, Vanguard Mid-Cap Index Portfolio, Vanguard Small Company Growth Portfolio, Vanguard International Portfolio, Vanguard REIT Index Portfolio, Vanguard High Yield Bond Portfolio, Vanguard Money Market Portfolio, Fidelity VIP II Contrafund. Portfolio, Fidelity VIP Equity-Income Portfolio, Fidelity VIP III Dynamic Cap Appreciation Portfolio, Scudder Capital Growth Portfolio, and Alger American Growth Portfolio. These financial statements and financial highlights are the responsibility of the Life Insurance Separate Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investments owned at December 31, 2002 were verified by confirmation with the investment custodian of the underlying portfolios of the USAA Life Investment Trust or through confirmation with the transfer agents of the other portfolios. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned fund accounts of the Life Insurance Separate Account of USAA Life Insurance Company as of December 31, 2002 and the results of their operations, the changes in their net assets, and financial highlights for each of the years or periods presented, in conformity with accounting principles generally accepted in the United States of America. /s/ KPMG LLP San Antonio, Texas January 31, 2003 LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2002 (In Thousands, Except Per Unit Data) FUND ACCOUNTS INVESTING IN: - --------------------------------------------------------------------------------
VVIF USAA LIFE USAA LIFE USAA LIFE USAA LIFE DIVERSIFIED VVIF MID- GROWTH AND AGGRESSIVE WORLD GROWTH DIVERSIFIED USAA LIFE VALUE VVIF EQUITY CAP INDEX INCOME FUND GROWTH FUND FUND ASSETS FUND INCOME FUND PORTFOLIO INDEX PORTFOLIO PORTFOLIO ----------- ----------- ------------ ----------- ----------- ----------- --------------- --------- ASSETS: Investments at market value $ 564 $ 796 $ 211 $ 575 $ 302 $ 133 $ 1,162 $ 274 ---------- ---------- ---------- ---------- ---------- --------- --------- --------- Net Assets $ 564 $ 796 $ 211 $ 575 $ 302 $ 133 $ 1,162 $ 274 ========== ========== ========== ========== ========== ========= ========= ========= Net Assets: Net assets attributable to policyowners' reserves $ 564 $ 796 $ 211 $ 575 $ 302 $ 133 $ 1,162 $ 274 ========== ========== ========== ========== ========== ========= ========= ========= Units outstanding (accumulation) 32 67 15 29 18 17 145 33 ========== ========== ========== ========== ========== ========= ========= ========= Unit value (accumulation) $17.449936 $11.836938 $14.273481 $19.611603 $17.110216 $7.947514 $7.995176 $8.397224 ========== ========== ========== ========== ========== ========= ========= ========= VVIF SMALL FVIP FVIP EQUITY- COMPANY VVIF VVIF HIGH VVIF MONEY CONTRAFUND(R) INCOME GROWTH INTERNATIONAL VVIF REIT YIELD BOND MARKET PORTFOLIO, PORTFOLIO, PORTFOLIO PORTFOLIO INDEX PORTFOLIO PORTFOLIO PORTFOLIO INITIAL CLASS INITIAL CLASS ---------- ------------- --------------- ---------- ---------- ------------- ------------- ASSETS: Investments at market value $ 376 $ 224 $ 240 $ 230 $ 1,190 $ 114 $ 175 --------- --------- ---------- --------- --------- --------- --------- Net Assets $ 376 $ 224 $ 240 $ 230 $ 1,190 $ 114 $ 175 ========= ========= ========== ========= ========= ========= ========= Net Assets: Net assets attributable to policyowners' reserves $ 376 $ 224 $ 240 $ 230 $ 1,190 $ 114 $ 175 ========= ========= ========== ========= ========= ========= ========= Units outstanding (accumulation) 47 31 21 23 881 13 23 ========= ========= ========== ========= ========= ========= ========= Unit value (accumulation) $8.065415 $7.120925 $11.252063 $9.946870 $1.350997 $8.561012 $7.771493 ========= ========= ========== ========= ========= ========= ========= FVIP DYNAMIC CAP. SVS I CAPITAL ALGER APPRECIATION GROWTH AMERICAN PORTFOLIO, PORTFOLIO, GROWTH INITIAL CLASS CLASS A SHARES PORTFOLIO TOTAL ------------- -------------- ---------- -------- ASSETS: Investments at market value $ 37 $ 370 $ 816 $7,789 --------- ---------- ---------- ------ Net Assets $ 37 $ 370 $ 816 $7,789 ========= ========== ========== ====== Net Assets: Net assets attributable to policyowners' reserves $ 37 $ 370 $ 816 $7,789 ========= ========== ========== ====== Units outstanding (accumulation) 5 22 47 ========= ========== ========== Unit value (accumulation) $7.809482 $16.508497 $17.520609 ========= ========== ==========
See accompanying Notes to Financial Statements. LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS YEAR OR PERIOD ENDED DECEMBER 31, 2002 (In Thousands) FUND ACCOUNTS INVESTING IN: - --------------------------------------------------------------------------------
USAA LIFE USAA LIFE USAA LIFE USAA LIFE VVIF GROWTH AND AGGRESSIVE WORLD GROWTH DIVERSIFIED USAA LIFE DIVERSIFIED INCOME FUND GROWTH FUND FUND ASSETS FUND INCOME FUND VALUE PORTFOLIO ----------- ----------- ------------ ------------ ----------- --------------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 7 $ - $ 2 $ 14 $ 13 $ 2 ----- ----- ---- ---- ----- ---- Expenses Mortality and expense risk charge 4 6 2 4 2 1 ----- ----- ---- ---- ----- ---- Net investment income (loss) 3 (6) - 10 11 1 ----- ----- ---- ---- ----- ---- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on sale of investments (20) (179) (23) (18) (2) (2) Capital gains distributions 14 - - 25 - - ----- ----- ---- ---- ----- ---- Net realized gain (loss) (6) (179) (23) 7 (2) (2) Change in net unrealized appreciation/ depreciation (125) (127) (13) (87) 9 (16) ----- ----- ---- ---- ----- ---- Net realized and unrealized gain (loss) on investments (131) (306) (36) (80) 7 (18) ----- ----- ---- ---- ----- ---- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(128) $(312) $(36) $(70) $ 18 $(17) ===== ===== ==== ==== ===== ==== VVIF SMALL COMPANY VVIF VVIF HIGH VVIF EQUITY VVIF MID-CAP GROWTH INTERNATIONAL VVIF REIT YIELD BOND INDEX PORTFOLIO INDEX PORTFOLIO PORTFOLIO PORTFOLIO INDEX PORTFOLIO PORTFOLIO --------------- --------------- ---------- ------------ --------------- ---------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 19 $ 1 $ 3 $ 4 $ 6 $ 7 ------ ---- ----- ---- --- --- Expenses Mortality and expense risk charge 9 1 3 1 2 1 ------ ---- ----- ---- --- --- Net investment income (loss) 10 - - 3 4 6 ------ ---- ----- ---- --- --- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on sale of investments (38) (9) (2) (4) (3) (1) Capital gains distributions 71 7 12 6 2 - ------ ---- ----- ---- --- --- Net realized gain (loss) 33 (2) 10 2 (1) (1) Change in net unrealized appreciation/ depreciation (338) (32) (111) (44) (8) (1) ------ ---- ----- ---- --- --- Net realized and unrealized gain (loss) on investments (305) (34) (101) (42) (9) (2) ------ ---- ----- ---- --- --- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (295) $(34) $(101) $(39) $(5) $ 4 ====== ==== ===== ==== === === FVIP DYNAMIC SVS I CAPITAL FVIP FVIP EQUITY- CAP GROWTH ALIGER VVIF MONEY CONTRAFUND(R) INCOME APPRECIATION PORTFOLIO, AMERICAN MARKET PORTFOLIO, PORTFOLIO, PORTFOLIO, CLASS A GROWTH PORTFOLIO INITIAL CLASS INITIAL CLASS INITIAL CLASS SHARES PORTFOLIO ---------- ------------- ------------- ------------- ------------ --------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 29 $ - $ 2 $ - $ 1 $ - ----- ----- ---- ---- ----- ----- Expenses Mortality and expense risk charge 13 - 1 - 3 7 ----- ----- ---- ---- ----- ----- Net investment income (loss) 16 - 1 - (2) (7) ----- ----- ---- ---- ----- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on sale of investments - 1 (6) - (179) (233) Capital gains distributions - - 2 - - - ----- ----- ---- ---- ----- ----- Net realized gain (loss) - 1 (4) - (179) (233) Change in net unrealized appreciation/ depreciation - (9) (24) (2) 25 (149) ----- ----- ---- ---- ----- ----- Net realized and unrealized gain (loss) on investments - (8) (28) (2) (154) (382) ----- ----- ---- ---- ----- ----- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 16 $ (8) $(27) $ (2) $(156) $(389) ===== ===== ==== ==== ===== =====
See accompanying Notes to Financial Statements. LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS YEARS OR PERIODS ENDED DECEMBER 31, 2002 AND 2001 (In Thousands) FUND ACCOUNTS INVESTING IN: - --------------------------------------------------------------------------------
USAA LIFE USAA LIFE USAA LIFE GROWTH AGGRESSIVE USAA LIFE WORLD DIVERSIFIED ASSETS AND INCOME FUND GROWTH FUND GROWTH FUND FUND ----------------- ---------------- ----------------- -------------------- 2002 2001 2002 2001 2002 2001 2002 2001 ----------------- ---------------- ----------------- -------------------- FROM OPERATIONS: Net investment income (loss) $ 3 $ 5 $ (6) $ (6) $ - $ 1 $ 10 $ 6 Net realized gain (loss) (6) 15 (179) (23) (23) (10) 7 8 Change in net unrealized appreciation/depreciation (125) (50) (127) (201) (13) (25) (87) 24 ---------------- --------------- --------------- ------------------- Increase (decrease) in net assets resulting from operations (128) (30) (312) (230) (36) (34) (70) 38 ---------------- --------------- --------------- ------------------- FROM POLICY TRANSACTIONS: Purchases and transfers in 215 404 290 461 60 135 248 401 Monthly deduction charges (36) (27) (53) (48) (12) (10) (23) (13) Other redemptions (68) (146) (97) (83) (29) (16) (117) (75) ---------------- --------------- --------------- ------------------- Increase (decrease) in net assets from policy transactions 111 231 140 330 19 109 108 313 ---------------- --------------- --------------- ------------------- Net increase (decrease) in net assets (17) 201 (172) 100 (17) 75 38 351 NET ASSETS: Beginning of period 581 380 968 868 228 153 537 186 ---------------- --------------- --------------- ------------------- End of period $ 564 $ 581 $ 796 $ 968 $ 211 $ 228 $ 575 $ 537 ================ =============== =============== =================== UNITS ISSUED AND REDEEMED Beginning balance 26 16 56 38 13 7 24 9 Units issued 13 19 27 29 5 8 13 19 Units redeemed (7) (9) (16) (11) (3) (2) (8) (4) ---------------- --------------- --------------- ------------------- Ending balance 32 26 67 56 15 13 29 24 ================ =============== =============== =================== USAA LIFE VVIF DIVERSIFIED **VVIF EQUITY- *VVIF MID-CAP INCOME FUND VALUE PORTFOLIO INDEX PORTFOLIO INDEX PORTFOLIO ------------------- ----------------- -------------------- ------------------ 2002 2001 2002 2001 2002 2001 2002 2001 ------------------- ----------------- -------------------- ------------------ FROM OPERATIONS: Net investment income (loss) $ 11 $ 8 $ 1 $ - $ 10 $ (9) $ - $ - Net realized gain (loss) (2) (10) (2) - 33 (158) (2) (6) Change in net unrealized appreciation/depreciation 9 16 (16) - (338) 3 (32) 1 ----------------- --------------- ----------------- ----------------- Increase (decrease) in net assets resulting from operations 18 14 (17) - (295) (164) (34) (5) ----------------- --------------- ----------------- ----------------- FROM POLICY TRANSACTIONS: Purchases and transfers in 224 161 109 60 337 638 257 123 Monthly deduction charges (17) (10) (4) - (56) (45) (11) (2) Other redemptions (200) (111) (15) - (115) (285) (29) (25) ----------------- --------------- ----------------- ----------------- Increase (decrease) in net assets from policy transactions 7 40 90 60 166 308 217 96 ----------------- --------------- ----------------- ----------------- Net increase (decrease) in net assets 25 54 73 60 (129) 144 183 91 NET ASSETS: Beginning of period 277 223 60 - 1,291 1,147 91 - ----------------- --------------- ----------------- ----------------- End of period $ 302 $ 277 $ 133 $ 60 $1,162 $ 1,291 $ 274 $ 91 ================= =============== ================= ================= UNITS ISSUED AND REDEEMED Beginning balance 17 15 6 - 125 97 9 - Units issued 15 10 13 6 46 67 30 13 Units redeemed (14) (8) (2) - (26) (39) (6) (4) ----------------- --------------- ----------------- ----------------- Ending balance 18 17 17 6 145 125 33 9 ================= =============== ================= ================= **VVIF SMALL **VVIF ***USAA LIFE COMPANY GROWTH INTERNATIONAL INTERNATIONAL *VVIF REIT INDEX PORTFOLIO PORTFOLIO FUND PORTFOLIO ------------------ ------------------- ----------------- ---------------- 2002 2001 2002 2001 2002 2001 2002 2001 ------------------ ------------------- ----------------- ---------------- FROM OPERATIONS: Net investment income (loss) $ - $ (2) $ 3 $ (1) $ - $ - $ 4 $ - Net realized gain (loss) 10 (5) 2 (24) - (5) (1) - Change in net unrealized appreciation/depreciation (111) 36 (44) (2) - 2 (8) 4 ----------------- ----------------- ---------------- --------------- Increase (decrease) in net assets resulting from operations (101) 29 (39) (27) - (3) (5) 4 ----------------- ----------------- ---------------- --------------- FROM POLICY TRANSACTIONS: Purchases and transfers in 189 179 85 150 - 10 370 107 Monthly deduction charges (18) (11) (12) (9) - (1) (16) (2) Other redemptions (73) 4 (3) (19) - (53) (218) - ----------------- ----------------- ---------------- --------------- Increase (decrease) in net assets from policy transactions 98 172 70 122 - (44) 136 105 ----------------- ----------------- ---------------- --------------- Net increase (decrease) in net assets (3) 201 31 95 - (47) 131 109 NET ASSETS: Beginning of period 379 178 193 98 - 47 109 - ----------------- ----------------- ---------------- --------------- End of period $ 376 $ 379 $ 224 $ 193 $ - $ - $ 240 $ 109 ================= ================= ================ =============== UNITS ISSUED AND REDEEMED Beginning balance 35 18 22 9 - 4 10 - Units issued 23 19 13 17 - 1 33 10 Units redeemed (11) (2) (4) (4) - (5) (22) - ----------------- ----------------- ---------------- --------------- Ending balance 47 35 31 22 - - 21 10 ================= ================= ================ =============== *FVIP CONTRAFUND *FVIP EQUITY- *VVIF HIGH YIELD **VVIF MONEY (R) PORTFOLIO, INCOME PORTFOLIO, BOND PORTFOLIO MARKET PORTFOLIO INITIAL CLASS INITIAL CLASS ----------------- -------------------- ------------------ ------------------ 2002 2001 2002 2001 2002 2001 2002 2001 ----------------- -------------------- ------------------ ------------------ FROM OPERATIONS: Net investment income (loss) $ 6 $ - $ 16 $ 44 $ - $ - $ 1 $ - Net realized gain (loss) (1) (1) - - 1 - (4) - Change in net unrealized appreciation/depreciation (1) 2 - - (9) 1 (24) 2 --------------- ------------------- ----------------- --------------- Increase (decrease) in net assets resulting from operations 4 1 16 44 (8) 1 (27) 2 --------------- ------------------- ----------------- --------------- FROM POLICY TRANSACTIONS: Purchases and transfers in 130 115 1,376 1,983 94 54 130 95 Monthly deduction charges (6) (1) (56) (30) (9) (1) (7) (1) Other redemptions (1) (12) (1,506) (1,650) (5) (12) (17) - --------------- ------------------- ----------------- --------------- Increase (decrease) in net assets from policy transactions 123 102 (186) 303 80 41 106 94 --------------- ------------------- ----------------- --------------- Net increase (decrease) in net assets 127 103 (170) 347 72 42 79 96 NET ASSETS: Beginning of period 103 - 1,360 1,013 42 - 96 - --------------- ------------------- ----------------- --------------- End of period $ 230 $ 103 $ 1,190 $ 1,360 $ 114 $ 42 $ 175 $ 96 =============== =================== ================= =============== UNITS ISSUED AND REDEEMED Beginning balance 10 - 1,016 782 4 - 10 - Units issued 14 12 1,122 1,735 11 6 16 10 Units redeemed (1) (2) (1,257) (1,501) (2) (2) (3) - --------------- ------------------- ----------------- --------------- Ending balance 23 10 881 1,016 13 4 23 10 =============== =================== ================= =============== FVIP DYNAMIC CAP. APPRECIATION SVS I CAPITAL PORTFOLIO, INITIAL GROWTH PORTFOLIO, ALGER AMERICAN CLASS CLASS A SHARES GROWTH PORTFOLIO ------------------ ------------------ ------------------- 2002 2001 2002 2001 2002 2001 ------------------ ------------------ ------------------- FROM OPERATIONS: Net investment income (loss) $ - $ - $ (2) $ (3) $ (7) $ (6) Net realized gain (loss) - - (179) (30) (233) 54 Change in net unrealized appreciation/depreciation (2) - 25 (128) (149) (206) ----------------- ----------------- ---------------- Increase (decrease) in net assets resulting from operations (2) - (156) (161) (389) (158) ----------------- ----------------- ---------------- FROM POLICY TRANSACTIONS: Purchases and transfers in 35 7 106 313 230 480 Monthly deduction charges (2) - (32) (31) (57) (55) Other redemptions (1) - (184) (134) (161) (81) ----------------- ----------------- ---------------- Increase (decrease) in net assets from policy transactions 32 7 (110) 148 12 344 ----------------- ----------------- ---------------- Net increase (decrease) in net assets 30 7 (266) (13) (377) 186 NET ASSETS: Beginning of period 7 - 636 649 1,193 1,007 ----------------- ----------------- ---------------- End of period $ 37 $ 7 $ 370 $ 636 $ 816 $1,193 ================= ================= ================ UNITS ISSUED AND REDEEMED Beginning balance 1 - 27 22 45 33 Units issued 4 1 7 13 14 19 Units redeemed - - (12) (8) (12) (7) ----------------- ----------------- ---------------- Ending balance 5 1 22 27 47 45 ================= ================= ================
See accompanying Notes to Financial Statements. * Variable fund accounts commenced operations May 1, 2001. ** See accompanying Notes to Financial Statements for information on May 1, 2001 fund substitution. *** USAA Life International Fund reflects operations from 01/01/01 to 04/30/01. LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2002 1) ORGANIZATION The Life Insurance Separate Account of USAA Life Insurance Company (Life Insurance Separate Account) is registered under the Investment Company Act of 1940, as amended, as a segregated unit investment account of USAA Life Insurance Company (USAA Life), a wholly owned subsidiary of the United Services Automobile Association (USAA). Units of the Life Insurance Separate Account are sold only in connection with the Variable Universal Life Policy. Under applicable insurance law, the assets and liabilities of the Life Insurance Separate Account are clearly identified and distinguished from USAA Life. The Life Insurance Separate Account cannot be charged with liabilities arising out of any other business of USAA Life. The Life Insurance Separate Account is divided into 18 variable fund accounts which are invested in shares of a designated portfolio of the USAA Life Investment Trust, Vanguard(R) Variable Insurance Fund (VVIF), Fidelity(R) Variable Insurance Products (FVIP), Scudder Variable Series I (SVS I), or the Alger American Fund as follows:
Fund Account Mutual Fund Investment - -------------------------------------------------------------------------------------------------------------- USAA Life Growth and Income USAA Life Growth and Income Fund USAA Life Aggressive Growth USAA Life Aggressive Growth Fund USAA Life World Growth USAA Life World Growth Fund USAA Life Diversified Assets USAA Life Diversified Assets Fund USAA Life Income USAA Life Income Fund Vanguard Diversified Value Portfolio VVIF Diversified Value Portfolio Vanguard Equity Index Portfolio VVIF Equity Index Portfolio Vanguard Mid-Cap Index Portfolio VVIF Mid-Cap Index Portfolio Vanguard Small Company Growth Portfolio VVIF Small Company Growth Portfolio Vanguard International Portfolio VVIF International Portfolio Vanguard REIT Index Portfolio VVIF REIT Index Portfolio Vanguard High Yield Bond Portfolio VVIF High Yield Bond Portfolio Vanguard Money Market Portfolio VVIF Money Market Portfolio Fidelity VIP Contrafund(R) Portfolio FVIP Contrafund(R) Portfolio, Initial Class Fidelity VIP Equity-Income Portfolio FVIP Equity-Income Portfolio, Initial Class Fidelity VIP Dynamic Cap Appreciation Portfolio FVIP Dynamic Cap Appreciation Portfolio, Initial Class Scudder Capital Growth Portfolio SVS I Capital Growth Portfolio, Class A shares Alger American Growth Portfolio Alger American Growth Portfolio
On May 1, 2001, USAA Life substituted shares of the VVIF Equity Index Portfolio for shares of the Deutsche VIT Equity 500 Index Fund, shares of the VVIF Small Company Growth Portfolio for shares of the Deutsche VIT Small Cap Index Fund, shares of the VVIF International Portfolio for shares of the Deutsche VIT EAFE(R) Equity Index Fund and the USAA Life International Fund, and shares of the VVIF Money Market Fund Portfolio for shares of the USAA Life Money Market Fund. The operations of the predecessor funds prior to May 1, 2001 are included in the accompanying financial statements. Each fund substitution was a non-taxable event for policyholders and did not affect total assets. The policyholders' accumulated value did not change as a result of the substitution. For the Vanguard International Portfolio fund account, which replaced two fund accounts, the accumulation unit value (AUV) of the Deutsche EAFE(R) Equity Index fund account was used as the starting AUV. The AUVs remained the same immediately before and after the substitution for the other fund substitutions. 2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SECURITY VALUATION Investments in mutual fund securities are carried in the Statements of Assets and Liabilities at net asset value as reported by the fund. Gains or losses on securities transactions are determined on the basis of the first-in first-out (FIFO) cost method. Security transactions are recorded on the trade date. Dividend income, if any, is recorded on ex-dividend date. DISTRIBUTIONS The net investment income (loss) and realized capital gains of the Life Insurance Separate Account are not distributed, but instead are retained and reinvested for the benefit of unit owners. FEDERAL INCOME TAX Operations of the Life Insurance Separate Account are included in the federal income tax return of USAA Life, which is taxed as a "Life Insurance Company" under the Internal Revenue Code. Under current federal income tax law, no income taxes are payable with respect to operation of the Life Insurance Separate Account. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts in the financial statements. 3) RELATED PARTY TRANSACTIONS During the year ended December 31, 2002, advisory and administrative fees of approximately $722,000 were paid or payable to USAA Investment Management Company (USAA IMCO) by the funds of the USAA Life Investment Trust (the Trust). USAA IMCO is indirectly wholly owned by USAA. The Funds' advisory fees are computed at an annualized rate of .50% of the monthly average net assets of the USAA Life Aggressive Growth Fund, .35% of the monthly average net assets of the USAA Life World Growth Fund, and .20% of the monthly average net assets for each of the other Funds of the Trust for each calendar month. Prior to November 1, 2002, the advisory fee for the USAA Life World Growth Fund was .20% of the Fund's monthly average net assets. The funds are an investment option for both the Variable Universal Life Policy and the Flexible Premium Deferred Combination Fixed and Variable Annuity Contract. Administrative fees are based on USAA IMCO's estimated time incurred to provide such services. 4) EXPENSES A mortality and expense risk charge is deducted by USAA Life from the Life Insurance Separate Account on a daily basis which is equal, on an annual basis, to 0.75% of the daily net assets of each variable fund account. The mortality risk assumed is that insureds may live for a shorter period of time than estimated. Thus, a greater amount of death benefits than expected will be payable. The expense risk assumed by USAA Life is that the costs of administering the policies and the Life Insurance Separate Account may exceed the amount recovered from the policy maintenance and administration expense charges. The mortality and expense risk charge is guaranteed by USAA Life and cannot be increased. The following expenses are charged to reimburse USAA Life for the expenses it incurs in the establishment and maintenance of the Policies and each variable fund account. On the policy's effective date, and each monthly anniversary thereafter, certain monthly charges will be deducted by USAA Life through a redemption of units from the cash value of the policy. The monthly deduction will include cost of insurance charges, which includes charges for any optional insurance benefits provided by rider, an administrative charge of $10 during the first twelve policy months, and a recurring maintenance charge of $5. Total charges deducted during the current year were approximately $430,000. A transfer charge of $25 will be deducted for each value transfer between Variable Fund Accounts in excess of six per Policy Year. For each partial surrender of cash value, a charge equal to the lesser of $25 or 2% of the amount withdrawn will be deducted. This charge is also referred to as an "administrative processing fee." For full surrenders, the amount of the surrender charge will equal a percentage of the Annual Target Premium Payment specified in the policy. The number of years the policy has been in force at the time of surrender determines the applicable percentage. A 3% premium charge is deducted from the policyholder's premium to compensate USAA Life for sales charges and taxes. The charge will be deducted from the policyholder's premium payments until the policyholder's gross amount of premium payments received exceeds the sum of the policyholder's Annual Target Premium payments payable over 10 years. LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2002 5) INVESTMENTS The following table shows the number of shares owned, aggregate cost and net asset value per share of each fund at December 31, 2002:
NUMBER OF AGGREGATE NET ASSET SHARES COST VALUE PER (000) (000) SHARE ------------- ------------- ------------- USAA Life Growth and Income Fund 44 $ 733 $ 12.88 USAA Life Aggressive Growth Fund 73 1,308 10.96 USAA Life World Growth Fund 23 275 9.19 USAA Life Diversified Assets Fund 54 651 10.63 USAA Life Income Fund 28 261 10.78 Vanguard Diversified Value Portfolio 15 148 8.98 Vanguard Equity Index Portfolio 54 1,568 21.68 Vanguard Mid-Cap Index Portfolio 26 305 10.60 Vanguard Small Company Growth Portfolio 31 457 11.99 Vanguard International Portfolio 23 283 9.67 Vanguard REIT Index Portfolio 19 243 12.84 Vanguard High Yield Bond 28 230 8.21 Vanguard Money Market Portfolio 1,190 1,190 1.00 Fidelity VIP Contrafund Portfolio 6 121 18.10 Fidelity VIP Equity-Income Portfolio 10 197 18.16 Fidelity VIP Dynamic Capital App. Portfolio 6 39 5.66 Scudder VLIF Capital Growth Portfolio-Class A Shares 32 579 11.55 Alger American Growth Portfolio 33 1,439 24.63
LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2002 6) FINANCIAL HIGHLIGHTS A summary of unit values and units outstanding for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for each period is as follows:
USAA LIFE GROWTH AND INCOME FUND ACCOUNT ---------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998(a) ------------ ------------ ------------ ------------ ------------ At end of period: Accumulation units (000) 32 26 16 12 1 Accumulation unit value $ 17.449936 $ 22.397368 $ 23.978970 $ 23.296591 $ 20.468785 Net assets (000) $ 564 $ 581 $ 380 $ 276 $ 3 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -22.47% -6.96% 2.32% 12.52% NA
USAA LIFE AGGRESSIVE GROWTH FUND ACCOUNT ---------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998(a) ------------ ------------ ------------ ------------ ----------- At end of period: Accumulation units (000) 67 56 38 17 - Accumulation unit value $ 11.836938 $ 17.214778 $ 22.654870 $ 26.991318 $ 13.993064 Net assets (000) $ 796 $ 968 $ 868 $ 455 $ - Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -31.50% -24.22% -16.30% 91.33% NA
USAA LIFE WORLD GROWTH FUND ACCOUNT ---------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998(a) ------------ ------------ ------------ ------------ ----------- At end of period: Accumulation units (000) 15 13 7 2 - Accumulation unit value $ 14.273481 $ 16.988356 $ 20.654406 $ 23.209674 $ 17.860722 Net assets (000) $ 211 $ 228 $ 153 $ 51 $ - Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -16.44% -18.11% -11.48% 28.46% NA
USAA LIFE DIVERSIFIED ASSETS FUND ACCOUNT ---------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998(a) ----------- ----------- ----------- ----------- ----------- At end of period: Accumulation units (000) 29 24 9 7 2 Accumulation unit value $ 19.611603 $ 22.295041 $ 19.815589 $ 19.192009 $ 17.974654 Net assets (000) $ 575 $ 537 $ 186 $ 142 $ 38 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -12.42% 12.08% 2.55% 5.41% NA
USAA LIFE INCOME FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998(a) ------------ ------------ ------------ ------------ ----------- At end of period: Accumulation units (000) 18 17 15 9 - Accumulation unit value $ 17.110216 $ 15.969161 $ 15.007467 $ 13.262741 $ 14.089499 Net assets (000) $ 302 $ 277 $ 223 $ 119 $ - Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) 6.64% 5.92% 12.24% -7.29% NA
VANGUARD DIVERSIFIED VALUE PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ----------- At end of period: Accumulation units (000) 17 6 Accumulation unit value $ 7.947514 $ 9.336800 Net assets (000) $ 133 $ 60 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -15.42% -6.98%(f)
VANGUARD EQUITY INDEX PORTFOLIO FUND ACCOUNT ---------------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) ----------- ----------- ----------- ----------- ----------- At end of period: Accumulation units (000) 145 125 97 54 1 Accumulation unit value $ 7.995176 $ 10.341906 $ 11.844646 $ 13.147788 $ 11.003536 Net assets (000) $ 1,162 $ 1,291 $ 1,147 $ 715 $ 3 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -23.11% -13.05% -10.40% 18.20% NA
VANGUARD MID-CAP INDEX PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ----------- At end of period: 33 9 Accumulation units (000) $ 8.397224 $ 9.912441 Accumulation unit value $ 274 $ 91 Net assets (000) Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -15.79% -1.25%(f)
VANGUARD SMALL COMPANY GROWTH PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) ----------- ------------ ------------ ------------ ------------ At end of period: 47 35 18 7 - Accumulation units (000) $ 8.065415 $ 10.696387 $ 10.043462 $ 10.526480 $ 8.825971 Accumulation unit value $ 376 $ 379 $ 178 $ 78 $ - Net assets (000) Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -24.93% 6.11% -5.09% 17.88% NA
VANGUARD INTERNATIONAL PORTFOLIO FUND ACCOUNT ---------------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) ----------- ----------- ----------- ----------- ----------- At end of period: Accumulation units (000) 31 22 9 1 1 Accumulation unit value $ 7.120925 $ 8.670638 $ 10.881890 $ 13.154856 $ 10.386978 Net assets (000) $ 224 $ 193 $ 98 $ 12 $ 2 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -18.40% -20.73% -17.77% 25.12% NA
VANGUARD REIT INDEX PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------- At end of period: Accumulation units (000) 21 10 Accumulation unit value $ 11.252063 $ 10.950003 Net assets (000) $ 240 $ 109 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) 2.27% 9.13%(f)
VANGUARD HIGH YIELD BOND PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------- At end of period: Accumulation units (000) 23 10 Accumulation unit value $ 9.946870 $ 9.869512 Net assets (000) $ 230 $ 103 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) 0.22% -1.67%(f)
VANGUARD MONEY MARKET PORTFOLIO FUND ACCOUNT ---------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) ------------ ------------ ------------ ----------- ------------ At end of period: Accumulation units (000) 881 1,016 782 276 1 Accumulation unit value $ 1.350997 $ 1.338044 $ 1.293846 $ 1.227534 $ 1.178565 Net assets (000) $ 1,190 $ 1,360 $ 1,013 $ 339 $ 1 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) 0.47% 2.94% 4.61% 2.65% NA
FIDELITY CONTRAFUND(R) PORTFOLIO FUND ACCOUNT ---------------------------------------------------------------------------------- Year Ended December 31, 2002 2001 (b) ------------ ------------ At end of period: Accumulation units (000) 13 4 Accumulation unit value $ 8.561012 $ 9.515065 Net assets (000) $ 114 $ 42 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -10.57% -5.21%(f)
FIDELITY EQUITY-INCOME PORTFOLIO FUND ACCOUNT ---------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------ At end of period: Accumulation units (000) 23 10 Accumulation unit value $ 7.771493 $ 9.427762 Net assets (000) $ 175 $ 96 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -18.10% -6.09%(f)
FIDELITY DYNAMIC CAP APPRECIATION PORTFOLIO ---------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------ At end of period: Accumulation units (000) 5 1 Accumulation unit value $ 7.809482 $ 8.464990 Net assets (000) $ 37 $ 7 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -8.37% -15.71%(f)
SCUDDER CAPITAL GROWTH PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------------------------ Year Ended December 31, 2002 2001 2000 1999 1998(a) ------------ ------------ ------------ ------------ --------------- At end of period: Accumulation units (000) 22 27 22 12 1 Accumulation unit value $ 16.508497 $ 23.487941 $ 29.346175 $ 32.816021 $ 24.448446 Net assets (000) $ 370 $ 636 $ 649 $ 384 $ 3 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -30.10% -20.28% -10.99% 32.82% NA
ALGER AMERICAN GROWTH PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------------------------ Year Ended December 31, 2002 2001 2000 1999 1998(a) ------------ ------------ ------------ ------------ --------------- At end of period: Accumulation units (000) 47 45 33 15 - Accumulation unit value $ 17.520609 $ 26.344044 $ 30.100055 $ 35.583778 $ 26.806157 Net assets (000) $ 816 $ 1,193 $ 1,007 $ 546 $ - Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -33.85% -12.81% -15.78% 31.46% NA
(a) Variable fund accounts commenced operations August 31, 1998 with the following initial unit values per unit: USAA Life Growth and Income $ 16.937712 USAA Life Aggressive Growth 9.446371 USAA Life World Growth 14.981795 USAA Life Diversified Assets 16.007256 USAA Life Income 13.766435 Vanguard Equity Index Portfolio 8.561922 Vanguard Small Company Growth Portfolio 7.048653 Vanguard International Portfolio 8.920584 Vanguard Money Market Fund Portfolio 1.162018 Scudder Capital Growth Portfolio 18.614844 Alger American Growth Portfolio 19.521151
(b) Variable fund accounts commenced operations May 1, 2001 with an initial accumulation unit value of $10.00 per unit. (c) See accompanying Notes to Financial Statements for information on May 1, 2001 fund substitution. (d) The information for 2002 is based on actual expenses to the policyowner for the period, excluding the expenses of the underlying fund, and charges made directly to policyowner accounts through the redemption of units. Prior years have been restated to exclude the expenses of the underlying fund, and charges made directly to the policyowner accounts through the redemption of units. (e) Annualized. The ratio is not necessarily indicative of 12 months of operations. (f) Not annualized for periods less than one year. (g) The AUV total return figures are computed in accordance with a formula prescribed by the Securities and Exchange Commission, which includes deduction of policy charges. INDEPENDENT AUDITORS' REPORT TO THE BOARD OF DIRECTORS OF USAA LIFE INSURANCE COMPANY AND CONTRACTOWNERS OF THE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY: We have audited the accompanying statements of assets and liabilities as of December 31, 2002, the related statements of operations, statements of changes in net assets, and financial highlights presented in note 6 for each of the years or periods presented, for the 18 variable fund accounts available within the Separate Account of USAA Life Insurance Company: USAA Life Growth and Income, USAA Life Aggressive Growth, USAA Life World Growth, USAA Life Diversified Assets, USAA Life Income, Vanguard Diversified Value Portfolio, Vanguard Equity Index Portfolio, Vanguard Mid-Cap Index Portfolio, Vanguard Small Company Growth Portfolio, Vanguard International Portfolio, Vanguard REIT Index Portfolio, Vanguard High Yield Bond Portfolio, Vanguard Money Market Portfolio, Fidelity VIP II Contrafund. Portfolio, Fidelity VIP Equity-Income Portfolio, Fidelity VIP III Dynamic Cap Appreciation Portfolio, Scudder Capital Growth Portfolio, and Alger American Growth Portfolio. These financial statements and financial highlights are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investments owned at December 31, 2002 were verified by confirmation with the investment custodian of the underlying portfolios of the USAA Life Investment Trust or through confirmation with the transfer agents of the other portfolios. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned fund accounts available within the Separate Account of USAA Life Insurance Company as of December 31, 2002, and the results of their operations, the changes in their net assets, and financial highlights for each of the years or periods presented, in conformity with accounting principles generally accepted in the United States of America. /s/ KPMG LLP San Antonio, Texas January 31, 2003 SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2002 (In Thousands, Except Per Unit Data) FUND ACCOUNTS INVESTING IN: - --------------------------------------------------------------------------------
VVIF USAA LIFE USAA LIFE USAA LIFE USAA LIFE DIVERSIFIED VVIF EQUITY VVIF MID-CAP GROWTH AND AGGRESSIVE WORLD GROWTH DIVERSIFIED USAA LIFE VALUE INDEX INDEX INCOME FUND GROWTH FUND FUND ASSETS FUND INCOME FUND PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ASSETS: Investments at market value $ 47,797 $ 15,037 $ 13,121 $ 38,415 $ 25,946 $ 2,290 $ 20,742 $ 5,104 ---------- ---------- ---------- ---------- ---------- --------- --------- --------- Net assets $ 47,797 $ 15,037 $ 13,121 $ 38,415 $ 25,946 $ 2,290 $ 20,742 $ 5,104 ========== ========== ========== ========== ========== ========= ========= ========= Net assets: Accumulation reserves $ 47,777 $ 15,037 $ 13,088 $ 38,366 $ 25,865 $ 2,290 $ 20,742 $ 5,104 Annuity reserves 20 - 33 49 81 - - - ---------- ---------- ---------- ---------- ---------- --------- --------- --------- Net assets $ 47,797 $ 15,037 $ 13,121 $ 38,415 $ 25,946 $ 2,290 $ 20,742 $ 5,104 ========== ========== ========== ========== ========== ========= ========= ========= Units outstanding (accumulation) 2,738 1,270 917 1,956 1,511 288 2,594 608 ========== ========== ========== ========== ========== ========= ========= ========= (annuity) 1 - 2 3 5 - - - ========== ========== ========== ========== ========== ========= ========= ========= Unit value (accumulation) $17.449936 $11.836938 $14.273481 $19.611603 $17.110216 $7.947514 $7.995176 $8.397224 ========== ========== ========== ========== ========== ========= ========= ========= VVIF SMALL FVIP COMPANY VVIF VVIF REIT VVIF HIGH VVIF MONEY CONTRAFUND(R) GROWTH INTERNATIONAL INDEX YIELD BOND MARKET PORTFOLIO, PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO INITIAL CLASS ---------- ------------- ----------- ----------- ----------- ------------- ASSETS: Investments at market value $ 5,239 $ 3,611 $ 6,819 $ 1,392 $ 23,452 $ 2,088 --------- --------- ---------- --------- --------- --------- Net assets $ 5,239 $ 3,611 $ 6,819 $ 1,392 $ 23,452 $ 2,088 ========= ========= ========== ========= ========= ========= Net assets: Accumulation reserves $ 5,239 $ 3,611 $ 6,819 $ 1,392 $ 23,452 $ 2,088 Annuity reserves - - - - - - --------- --------- ---------- --------- --------- --------- Net assets $ 5,239 $ 3,611 $ 6,819 $ 1,392 $ 23,452 $ 2,088 ========= ========= ========== ========= ========= ========= Units outstanding (accumulation) 650 507 606 140 17,359 244 ========= ========= ========== ========= ========= ========= (annuity) - - - - - - ========= ========= ========== ========= ========= ========= Unit value (accumulation) $8.065415 $7.120925 $11.252063 $9.946870 $1.350997 $8.561012 ========= ========= ========== ========= ========= ========= FVIP DYNAMIC SVS I CAPITAL FVIP EQUITY- CAP GROWTH ALGER INCOME APPRECIATION PORTFOLIO, AMERICAN PORTFOLIO, PORTFOLIO, CLASS A GROWTH INITIAL CLASS INITIAL CLASS SHARES PORTFOLIO TOTAL ------------- ------------- ------------- ---------- --------- ASSETS: Investments at market value $ 1,170 $ 499 $ 25,077 $ 40,713 $ 278,512 --------- --------- ----------- ---------- --------- Net assets $ 1,170 $ 499 $ 25,077 $ 40,713 $ 278,512 ========= ========= =========== ========== ========= Net assets: Accumulation reserves $ 1,170 $ 499 $ 25,077 $ 40,634 $ 278,250 Annuity reserves - - - 79 262 --------- --------- ----------- ---------- --------- Net assets $ 1,170 $ 499 $ 25,077 $ 40,713 $ 278,512 ========= ========= =========== ========== ========= Units outstanding (accumulation) 151 64 1,519 2,319 ========= ========= =========== ========== (annuity) - - - 5 ========= ========= =========== ========== Unit value (accumulation) $7.771493 $7.809482 $ 16.508497 $17.520609 ========= ========= =========== ==========
See accompanying Notes to Financial Statements. SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS YEAR OR PERIOD ENDED DECEMBER 31, 2002 (In Thousands) FUND ACCOUNTS INVESTING IN: - -------------------------------------------------------------------------------
USAA LIFE USAA LIFE USAA LIFE USAA LIFE GROWTH AND AGGRESSIVE WORLD GROWTH DIVERSIFIED USAA LIFE INCOME FUND GROWTH FUND FUND ASSETS FUND INCOME FUND -------------- --------------- ---------------- --------------- -------------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 952 $ - $ 148 $ 1,235 $ 1,206 ----------- ----------- ------------ ----------- ----------- Expenses Mortality and expense risk charge 379 125 97 277 148 Administrative charge 58 19 15 43 23 ----------- ----------- ------------ ----------- ----------- Total expenses 437 144 112 320 171 ----------- ----------- ------------ ----------- ----------- Net investment income (loss) 515 (144) 36 915 1,035 ----------- ----------- ------------ ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on sale of investments (2,426) (3,946) (646) (3,017) (97) Capital gains distributions 1,704 - - 2,338 - ----------- ----------- ------------ ----------- ----------- Net realized loss (722) (3,946) (646) (679) (97) Change in net unrealized appreciation/ depreciation (14,951) (3,345) (2,034) (6,214) 649 ----------- ----------- ------------ ----------- ----------- Net realized and unrealized gain (loss) on investments (15,673) (7,291) (2,680) (6,893) 552 ----------- ----------- ------------ ----------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (15,158) $ (7,435) $ (2,644) $ (5,978) $ 1,587 =========== =========== ============ =========== =========== VVIF SMALL VVIF COMPANY VVIF DIVERSIFIED VVIF EQUITY VVIF MID-CAP GROWTH INTERNATIONAL VALUE PORTFOLIO INDEX PORTFOLIO INDEX PORTFOLIO PORTFOLIO PORTFOLIO ---------------- --------------- --------------- ----------- ------------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 47 $ 404 $ 27 $ 43 $ 93 ------------ ------------ ------------ --------- ---------- Expenses Mortality and expense risk charge 17 154 29 37 25 Administrative charge 3 24 4 6 4 ------------ ------------ ------------ --------- ---------- Total expenses 20 178 33 43 29 ------------ ------------ ------------ --------- ---------- Net investment income (loss) 27 226 (6) - 64 ------------ ------------ ------------ --------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on sale of investments (379) (2,169) (230) (324) (232) Capital gains distributions - 1,538 181 188 135 ------------ ------------ ------------ --------- ---------- Net realized loss (379) (631) (49) (136) (97) Change in net unrealized appreciation/depreciation (128) (5,909) (1,031) (1,722) (759) ------------ ------------ ------------ --------- ---------- Net realized and unrealized gain (loss) on investments (507) (6,540) (1,080) (1,858) (856) ------------ ------------ ------------ --------- ---------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (480) $ (6,314) $ (1,086) $ (1,858) $ (792) ============ ============ ============ ========= ========== VVIF HIGH VVIF REIT YIELD BOND INDEX PORTFOLIO PORTFOLIO ---------------- ----------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 104 $ 54 ------------ -------- Expenses Mortality and expense risk charge 32 7 Administrative charge 5 1 ------------ -------- Total expenses 37 8 ------------ -------- Net investment income (loss) 67 46 ------------ -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on sale of investments (105) (45) Capital gains distributions 35 - ------------ -------- Net realized loss (70) (45) Change in net unrealized appreciation/depreciation (174) 12 ------------ -------- Net realized and unrealized gain (loss) on investments (244) (33) ------------ -------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (177) $ 13 ============ ========
FVIP DYNAMIC SVS I CAPITAL FVIP FVIP EQUITY- CAP GROWTH VVIF MONEY CONTRAFUND(R) INCOME APPRECIATION PORTFOLIO, MARKET PORTFOLIO, PORTFOLIO, PORTFOLIO, CLASS A PORTFOLIO INITIAL CLASS INITIAL CLASS INITIAL CLASS SHARES ------------ --------------- --------------- ---------------- --------------- NET INVESTMENT INCOME (LOSS): Income Dividends from investments $ 424 $ 6 $ 18 $ 1 $ 113 --------- ------------ ------------ ------------- ----------- Expenses Mortality and expense risk charge 159 10 7 3 215 Administrative charge 24 1 1 - 33 --------- ------------ ------------ ------------- ----------- Total expenses 183 11 8 3 248 --------- ------------ ------------ ------------- ----------- Net investment income (loss) 241 (5) 10 (2) (135) --------- ------------ ------------ ------------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on sale of investments - (28) (119) (33) (4,568) Capital gains distributions - - 25 - - --------- ------------ ------------ ------------- ----------- Net realized loss - (28) (94) (33) (4,568) Change in net unrealized appreciation/ depreciation - (137) (175) (8) (7,364) --------- ------------ ------------ ------------- ----------- Net realized and unrealized loss on investments - (165) (269) (41) (11,932) --------- ------------ ------------ ------------- ----------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 241 $ (170) $ (259) $ (43) $ (12,067) ========= ============ ============ ============= =========== ALGER AMERICAN GROWTH PORTFOLIO ------------- NET INVESTMENT INCOME (LOSS): Income $ 22 ------------ Dividends from investments 352 Expenses Mortality and expense risk charge 54 ------------ Administrative charge 406 ------------ Total expenses (384) ------------ Net investment income (loss) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on sale of investments (5,296) Capital gains distributions - ------------ Net realized loss (5,296) Change in net unrealized appreciation/ depreciation (16,866) ------------ Net realized and unrealized loss on investments (22,162) ------------ INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (22,546) ============
See accompanying Notes to Financial Statements. SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS YEARS OR PERIODS ENDED DECEMBER 31, 2002, 2001 (In Thousands) FUND ACCOUNTS INVESTING IN: - -------------------------------------------------------------------------------
USAA LIFE GROWTH USAA LIFE AGGRESSIVE USAA LIFE WORLD USAA LIFE DIVERSIFIED AND INCOME FUND GROWTH FUND GROWTH FUND ASSETS FUND -------------------- ---------------------- ------------------ ---------------------- 2002 2001 2002 2001 2002 2001 2002 2001 -------------------- ---------------------- ------------------ ---------------------- FROM OPERATIONS: Net investment income (loss) $ 515 $ 519 $ (144) $ (208) $ 36 $ 64 $ 915 $ 992 Net realized gain (loss) (722) 4,767 (3,946) (250) (646) (393) (679) 2,852 Change in net unrealized appreciation/depreciation (14,951) (10,489) (3,345) (8,404) (2,034) (3,753) (6,214) 522 -------------------- ---------------------- ------------------ ---------------------- Increase (decrease) in net assets resulting from operations (15,158) (5,203) (7,435) (8,862) (2,644) (4,082) (5,978) 4,366 -------------------- ---------------------- ------------------ ---------------------- FROM CONTRACT TRANSACTIONS: Purchases and transfers in 1,719 4,381 1,700 4,178 418 429 9,113 6,349 Contract maintenance charges (56) (59) (23) (27) (14) (16) (32) (27) Other redemptions (8,644) (6,533) (4,042) (7,545) (1,820) (2,822) (7,027) (1,768) Adjustments to annuity reserves - - - - - - - - -------------------- ---------------------- ------------------ ---------------------- Increase (decrease) in net assets from contract transactions (6,981) (2,211) (2,365) (3,394) (1,416) (2,409) 2,054 4,554 -------------------- ---------------------- ------------------ ---------------------- Net increase (decrease) in net assets (22,139) (7,414) (9,800) (12,256) (4,060) (6,491) (3,924) 8,920 NET ASSETS: Beginning of period 69,936 77,350 24,837 37,093 17,181 23,672 42,339 33,419 -------------------- ---------------------- ------------------ ---------------------- End of period $ 47,797 $ 69,936 $ 15,037 $ 24,837 $ 13,121 $ 17,181 $ 38,415 $ 42,339 ==================== ====================== ================== ====================== UNITS ISSUED AND REDEEMED Beginning balance 3,123 3,226 1,443 1,637 1,011 1,146 1,899 1,687 Units issued 200 326 177 320 47 55 526 371 Units redeemed (584) (429) (350) (514) (139) (190) (466) (159) -------------------- ---------------------- ------------------ ---------------------- Ending balance 2,739 3,123 1,270 1,443 919 1,011 1,959 1,899 ==================== ====================== ================== ====================== USAA LIFE INCOME *VVIF DIVERSIFIED **VVIF EQUITY-INDEX FUND VALUE PORTFOLIO PORTFOLIO ------------------ ------------------- -------------------- 2002 2001 2002 2001 2002 2001 ------------------ ------------------- -------------------- FROM OPERATIONS: Net investment income (loss) $ 1,035 $ 741 $ 27 $ (8) $ 226 $ (208) Net realized gain (loss) (97) (100) (379) (4) (631) (1,747) Change in net unrealized appreciation/depreciation 649 303 (128) (127) (5,909) (1,899) ------------------ ------------------- -------------------- Increase (decrease) in net assets resulting from operations 1,587 944 (480) (139) (6,314) (3,854) ------------------ ------------------- -------------------- FROM CONTRACT TRANSACTIONS: Purchases and transfers in 7,006 11,728 1,896 2,854 5,387 6,821 Contract maintenance charges (16) (11) (1) - (18) (17) Other redemptions (5,598) (2,962) (1,657) (183) (6,224) (4,627) Adjustments to annuity reserves - - - - - - ------------------ ------------------- -------------------- Increase (decrease) in net assets from contract transactions 1,392 8,755 238 2,671 (855) 2,177 ------------------ ------------------- -------------------- Net increase (decrease) in net assets 2,979 9,699 (242) 2,532 (7,169) (1,677) NET ASSETS: Beginning of period 22,967 13,268 2,532 - 27,911 29,588 ------------------ ------------------- -------------------- End of period $ 25,946 $22,967 $ 2,290 $ 2,532 $ 20,742 $27,911 ================== =================== ==================== UNITS ISSUED AND REDEEMED Beginning balanc 1,438 884 271 - 2,699 2,498 Units issued 541 826 239 292 744 738 Units redeemed (463) (272) (222) (21) (849) (537) ------------------ ------------------- -------------------- Ending balance 1,516 1,438 288 271 2,594 2,699 ================== =================== ==================== **VVIF SMALL *VVIF MID-CAP INDEX COMPANY GROWTH **VVIF INTERNATIONAL PORTFOLIO PORTFOLIO PORTFOLIO ------------------- --------------- -------------------- 2002 2001 2002 2001 2002 2001 ------------------- --------------- -------------------- FROM OPERATIONS: Net investment income (loss) $ (6) $ (6) $ - $ (33) $ 64 $ (26) Net realized gain (loss) (49) (15) (136) 99 (97) (535) Change in net unrealized appreciation/depreciation (1,031) 40 (1,722) 215 (759) (235) ------------------- --------------- -------------------- Increase (decrease) in net assets resulting from operations (1,086) 19 (1,858) 281 (792) (796) ------------------- --------------- -------------------- FROM CONTRACT TRANSACTIONS: Purchases and transfers in 5,642 2,259 3,412 1,420 1,005 3,462 Contract maintenance charges (2) - (4) (2) (3) (3) Other redemptions (1,535) (193) (1,194) (1,232) (701) (929) Adjustments to annuity reserves - - - - - - ------------------- --------------- -------------------- Increase (decrease) in net assets from contract transactions 4,105 2,066 2,214 186 301 2,530 ------------------- --------------- -------------------- Net increase (decrease) in net assets 3,019 2,085 356 467 (491) 1,734 NET ASSETS: Beginning of period 2,085 - 4,883 4,416 4,102 2,368 ------------------- --------------- -------------------- End of period $ 5,104 $ 2,085 $ 5,239 $4,883 $ 3,611 $ 4,102 =================== =============== ==================== UNITS ISSUED AND REDEEMED Beginning balance 210 - 456 440 473 218 Units issued 608 234 376 147 142 361 Units redeemed (210) (24) (182) (131) (108) (106) ------------------- --------------- -------------------- Ending balance 608 210 650 456 507 473 =================== =============== ====================
**USAA LIFE *VVIF REIT INDEX *VVIF HIGH YIELD **VVIF MONEY MARKET INTERNATIONAL FUND PORTFOLIO BOND PORTFOLIO PORTFOLIO -------------------- ---------------------- ------------------ ---------------------- 2002 ***2001 2002 2001 2002 2001 2002 2001 -------------------- ---------------------- ------------------ ---------------------- FROM OPERATIONS: Net investment income (loss) $ - $ (7) $ 67 $ (3) $ 46 $ (2) $ 241 $ 1,074 Net realized gain (loss) - (262) (70) 2 (45) (2) - - Change in net unrealized appreciation/depreciation - 97 (174) 45 12 1 - - -------------------- ---------------------- ------------------ ---------------------- Increase (decrease) in net assets resulting from operations - (172) (177) 44 13 (3) 241 1,074 -------------------- ---------------------- ------------------ ---------------------- FROM CONTRACT TRANSACTIONS: Purchases and transfers in - 128 9,112 1,112 1,208 823 15,711 24,712 Contract maintenance charges - - (4) - (1) - (14) (13) Other redemptions - (2,899) (3,233) (35) (535) (113) (25,126) (19,174) Adjustments to annuity reserves - - - - - - - - -------------------- ---------------------- ------------------ ---------------------- Increase (decrease) in net assets from contract transactions - (2,771) 5,875 1,077 672 710 (9,429) 5,525 -------------------- ---------------------- ------------------ ---------------------- Net increase (decrease) in net assets - (2,943) 5,698 1,121 685 707 (9,188) 6,599 NET ASSETS: Beginning of period - 2,943 1,121 - 707 - 32,640 26,041 -------------------- ---------------------- ------------------ ---------------------- End of period $ - $ - $ 6,819 $ 1,121 $ 1,392 $ 707 $ 23,452 $ 32,640 ==================== ====================== ================== ====================== UNITS ISSUED AND REDEEMED Beginning balance - 248 102 - 72 - 24,394 20,126 Units issued - 13 848 107 127 83 18,507 26,530 Units redeemed - (261) (344) (5) (59) (11) (25,542) (22,262) -------------------- ---------------------- ------------------ ---------------------- Ending balance - - 606 102 140 72 17,359 24,394 ==================== ====================== ================== ====================== *FVIP DYNAMIC CAP *FVIP CONTRAFUND(R) *FVIP EQUITY-INCOME APPRECIATION PORTFOLIO, INITIAL CLASS PORTFOLIO, INITIAL CLASS PORTFOLIO, INITIAL CLASS ------------------------- ------------------------ ------------------------ 2002 2001 2002 2001 2002 2001 ------------------------- ------------------------ ------------------------ FROM OPERATIONS: Net investment income (loss) $ (5) $ (2) $ 10 $ (3) $ (2) $ (1) Net realized gain (loss) (28) (1) (94) (4) (33) (9) Change in net unrealized appreciation/ depreciation (137) 2 (175) (11) (8) (9) ------------------------- ------------------------ ------------------------ Increase (decrease) in net assets resulting from operations (170) (1) (259) (18) (43) (19) ------------------------- ------------------------ ------------------------ FROM CONTRACT TRANSACTIONS: Purchases and transfers in 1,942 706 1,330 938 610 249 Contract maintenance charges (1) - (1) - - - Other redemptions (373) (15) (799) (21) (271) (27) Adjustments to annuity reserves - - - - - - ------------------------- ------------------------ ------------------------ Increase (decrease) in net assets from contract transactions 1,568 691 530 917 339 222 ------------------------- ------------------------ ------------------------ Net increase (decrease) in net assets 1,398 690 271 899 296 203 NET ASSETS: Beginning of period 690 - 899 - 203 - ------------------------- ------------------------ ------------------------ End of period $ 2,088 $690 $ 1,170 $ 899 $ 499 $ 203 ========================= ======================== ======================== UNITS ISSUED AND REDEEMED Beginning balance 73 - 95 - 24 - Units issued 219 76 151 98 78 28 Units redeemed (48) (3) (95) (3) (38) (4) ------------------------- ------------------------ ------------------------ Ending balance 244 73 151 95 64 24 ========================= ======================== ======================== SVS I CAPITAL GROWTH PORTFOLIO, CLASS A ALGER AMERICAN SHARES GROWTH PORTFOLIO ---------------------- -------------------- 2002 2001 2002 2001 ---------------------- -------------------- FROM OPERATIONS: Net investment income (loss) $ (135) $ (172) $ (384) $ (414) Net realized gain (loss) (4,568) 5,866 (5,296) 10,115 Change in net unrealized appreciation/ depreciation (7,364) (17,758) (16,866) (21,308) ---------------------- -------------------- Increase (decrease) in net assets resulting from operations (12,067) (12,064) (22,546) (11,607) ---------------------- -------------------- FROM CONTRACT TRANSACTIONS: Purchases and transfers in 1,212 2,739 1,840 3,696 Contract maintenance charges (34) (41) (54) (64) Other redemptions (7,127) (8,633) (10,347) (12,437) Adjustments to annuity reserves - - - - ---------------------- -------------------- Increase (decrease) in net assets from contract transactions (5,949) (5,935) (8,561) (8,805) ---------------------- -------------------- Net increase (decrease) in net assets (18,016) (17,999) (31,107) (20,412) NET ASSETS: Beginning of period 43,093 61,092 71,820 92,232 ---------------------- -------------------- End of period $ 25,077 $ 43,093 $ 40,713 $ 71,820 ====================== ==================== UNITS ISSUED AND REDEEMED Beginning balance 1,835 2,082 2,726 3,064 Units issued 117 185 178 246 Units redeemed (433) (432) (580) (584) ---------------------- -------------------- Ending balance 1,519 1,835 2,324 2,726 ====================== ====================
See accompanying Notes to Financial Statements. * Variable fund accounts commenced operations May 1, 2001. ** See accompanying Notes to Financial Statements for information on May 1, 2001 fund substitution. *** USAA Life International Fund reflects operations from 01/01/01 to 04/30/01. SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2002 1) ORGANIZATION The Separate Account of USAA Life Insurance Company (the Separate Account) is registered under the Investment Company Act of 1940, as amended, as a segregated unit investment account of USAA Life Insurance Company (USAA Life), a wholly owned subsidiary of the United Services Automobile Association (USAA). Units of the Separate Account are sold only in connection with the Variable Annuity Contract. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from USAA Life. The Separate Account cannot be charged with liabilities arising out of any other business of USAA Life. The Separate Account is divided into 18 variable fund accounts which are invested in shares of a designated portfolio of the USAA Life Investment Trust, Vanguard(R) Variable Insurance Fund (VVIF), Fidelity(R) Variable Insurance Products (FVIP), Scudder Variable Series I (SVS I), or The Alger American Fund as follows:
Fund Account Mutual Fund Investment - ----------------------------------------------------------------------------------------------------------- USAA Life Growth and Income USAA Life Growth and Income Fund USAA Life Aggressive Growth USAA Life Aggressive Growth Fund USAA Life World Growth USAA Life World Growth Fund USAA Life Diversified Assets USAA Life Diversified Assets Fund USAA Life Income USAA Life Income Fund Vanguard Diversified Value Portfolio VVIF Diversified Value Portfolio Vanguard Equity Index Portfolio VVIF Equity Index Portfolio Vanguard Mid-Cap Index Portfolio VVIF Mid-Cap Index Portfolio Vanguard Small Company Growth Portfolio VVIF Small Company Growth Portfolio Vanguard International Portfolio VVIF International Portfolio Vanguard REIT Index Portfolio VVIF REIT Index Portfolio Vanguard High Yield Bond Portfolio VVIF High Yield Bond Portfolio Vanguard Money Market Portfolio VVIF Money Market Portfolio Fidelity VIP Contrafund(R) Portfolio FVIP Contrafund(R) Portfolio, Initial Class Fidelity VIP Equity-Income Portfolio FVIP Equity-Income Portfolio, Initial Class Fidelity VIP Dynamic Cap Appreciation Portfolio FVIP Dynamic Cap Appreciation Portfolio, Initial Class Scudder Capital Growth Portfolio SVS I Capital Growth Portfolio, Class A shares Alger American Growth Portfolio Alger American Growth Portfolio
On May 1, 2001, USAA Life substituted shares of the VVIF Equity Index Portfolio for shares of the Deutsche VIT Equity 500 Index Fund, shares of the VVIF Small Company Growth Portfolio for shares of the Deutsche VIT Small Cap Index Fund, shares of the VVIF International Portfolio for shares of the Deutsche VIT EAFE(R) Equity Index Fund and the USAA Life International Fund, and shares of the VVIF Money Market Fund Portfolio for shares of the USAA Life Money Market Fund. The operations of the predecessor funds prior to May 1, 2001 are included in the accompanying financial statements. Each fund substitution was a non-taxable event for contract owners and did not affect total assets. The value of contract owner holdings did not change as a result of the substitution. For the Vanguard International Portfolio fund account, which replaced two fund accounts, the accumulation unit value (AUV) of the Deutsche EAFE(R) Equity Index fund account was used as the starting AUV. The AUVs remained the same immediately before and after the substitution for the other fund substitutions. 2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SECURITY VALUATION Investments in mutual fund securities are carried in the Statements of Assets and Liabilities at net asset value as reported by the fund. Gains or losses on securities transactions are determined on the basis of the first-in first-out (FIFO) cost method. Security transactions are recorded on the trade date. Dividend income, if any, is recorded on ex-dividend date. ANNUITY RESERVES Annuity reserves for contracts in the payout phase are comprised of net contract purchase payments, less benefits. These reserves are adjusted daily for the net investment income and net realized gain (loss) and change in net unrealized appreciation/depreciation on investments. The mortality risk is fully borne by USAA Life. The mortality calculations are based on the 1983a Individual Annuitant Mortality Table at 3.0% interest. This may result in additional amounts being transferred into the Separate Account by USAA Life to cover greater longevity of annuitants than expected. Conversely, if reserves exceed amounts required, transfers may be made to USAA Life. DISTRIBUTIONS The net investment income (loss) and realized capital gains of the Separate Account are not distributed, but instead are retained and reinvested for the benefit of unit owners. FEDERAL INCOME TAX Operations of the Separate Account are included in the federal income tax return of USAA Life, which is taxed as a "Life Insurance Company" under the Internal Revenue Code. Under current federal income tax law, no income taxes are payable with respect to operation of the Separate Account. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts in the financial statements. 3) RELATED PARTY TRANSACTIONS During the year ended December 31, 2002, advisory and administrative fees of approximately $722,000 were paid or payable to USAA Investment Management Company (USAA IMCO) by the funds of the USAA Life Investment Trust (the Trust). USAA IMCO is indirectly wholly owned by USAA. The Funds' advisory fees are computed at an annualized rate of .50% of the monthly average net assets of the USAA Life Aggressive Growth Fund, .35% of the monthly average net assets of the USAA Life World Growth Fund, and .20% of the monthly average net assets for each of the other Funds of the Trust for each calendar month. Prior to November 1, 2002, the advisory fee for the USAA Life World Growth Fund was .20% of the Fund's monthly average net assets. The funds are an investment option for both the Variable Universal Life Policy and the Flexible Premium Deferred Combination Fixed and Variable Annuity Contract. Administrative fees are based on USAA IMCO's estimated time incurred to provide such services. 4) EXPENSES A mortality and expense risk charge is deducted by USAA Life from the Separate Account on a daily basis which is equal, on an annual basis, to 0.65% of the daily net assets of each variable fund account. The mortality risks assumed by USAA Life arise from its contractual obligation to make annuity payments after the annuity date for the life of the annuitant in accordance with annuity rates guaranteed in the contracts under distribution options that involve life contingencies. USAA Life will also assume a mortality risk by its contractual obligation to pay a death benefit upon the death of an annuitant or contract owner prior to the Distribution Phase. The expense risk assumed by USAA Life is that the costs of administering the contracts and the Separate Account may exceed the amount recovered from the contract maintenance and administration expense charges. The mortality and expense risk charge is guaranteed by USAA Life and cannot be increased. The following expenses are charged to reimburse USAA Life for the expenses it incurs in the establishment and maintenance of the Contracts and each variable fund account. USAA Life assesses each variable fund account a daily administrative charge at an annualized rate of 0.10% of the daily net assets of each variable fund account. Beginning on the first anniversary of the effective date, and on each anniversary thereafter, a maintenance charge of $30 is deducted by USAA Life through a redemption of units from the accumulated value of each contract. This charge will apply only while the contract is in the accumulation phase. Any premium tax levied by a state or government entity with respect to the Separate Account will be charged against the contract. SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2002 5) INVESTMENTS The following table shows the number of shares owned, aggregate cost and net asset value per share of each fund at December 31, 2002:
NUMBER OF AGGREGATE NET ASSET SHARES COST VALUE PER (000) (000) SHARE ------------- ------------- ------------- USAA Life Growth and Income Fund 3,711 $ 69,142 $ 12.88 USAA Life Aggressive Growth Fund 1,372 32,548 10.96 USAA Life World Growth Fund 1,428 20,993 9.19 USAA Life Diversified Assets Fund 3,614 48,046 10.63 USAA Life Income Fund 2,407 24,915 10.78 Vanguard Diversified Value Portfolio 255 2,545 8.98 Vanguard Equity Index Portfolio 957 28,565 21.68 Vanguard Mid-Cap Index Portfolio 481 6,094 10.60 Vanguard Small Company Growth Portfolio 437 6,657 11.99 Vanguard International Portfolio 373 4,895 9.67 Vanguard REIT Index Portfolio 531 6,948 12.84 Vanguard High Yield Bond 169 1,378 8.21 Vanguard Money Market Portfolio 23,452 23,452 1.00 Fidelity VIP Contrafund Portfolio 115 2,223 18.10 Fidelity VIP Equity-Income Portfolio 64 1,356 18.16 Fidelity VIP Dynamic Capital App. Portfolio 88 516 5.66 Scudder VLIF Capital Growth Portfolio-Class A Shares 2,171 49,771 11.55 Alger American Growth Portfolio 1,653 86,628 24.63
SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2002 6) FINANCIAL HIGHLIGHTS A summary of unit values and units outstanding for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for each period is as follows:
USAA LIFE GROWTH AND INCOME FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 2,738 3,122 3,225 3,598 3,697 Annuity units (000) 1 1 1 1 1 Accumulation unit value $17.449936 $22.397368 $23.978970 $23.296591 $20.468785 Net assets (000) $ 47,797 $ 69,936 $ 77,350 $ 83,851 $ 75,710 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) -22.15% -6.65% 2.86% 13.73% 6.02%
USAA LIFE AGGRESSIVE GROWTH FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 1,270 1,443 1,637 789 317 Annuity units (000) - - - - - Accumulation unit value $11.836938 $17.214778 $22.654870 $26.991318 $13.993064 Net assets (000) $ 15,037 $ 24,837 $ 37,093 $ 21,297 $ 4,442 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) -31.31% -24.07% -16.11% 92.59% 19.16%
USAA LIFE WORLD GROWTH FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 917 1,009 1,144 1,003 1,066 Annuity units (000) 2 2 2 2 3 Accumulation unit value $14.273481 $16.988356 $20.654406 $23.209674 $17.860722 Net assets (000) $ 13,121 $ 17,181 $ 23,672 $ 23,335 $ 19,096 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) -16.06% -17.81% -11.07% 29.84% 10.50%
USAA LIFE DIVERSIFIED ASSETS FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 1,956 1,896 1,684 2,072 1,841 Annuity units (000) 3 3 3 3 3 Accumulation unit value $19.611603 $22.295041 $19.815589 $19.192009 $17.974654 Net assets (000) $ 38,415 $ 42,339 $ 33,419 $ 39,823 $ 33,141 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) -12.10% 12.44% 3.17% 6.67% 8.69%
USAA LIFE INCOME FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 1,511 1,433 879 1,208 1,280 Annuity units (000) 5 5 5 6 6 Accumulation unit value $17.110216 $15.969161 $15.007467 $13.262741 $14.089499 Net assets (000) $ 25,946 $ 22,967 $ 13,268 $ 16,099 $ 18,119 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) 7.05% 6.32% 13.04% -5.99% 8.19%
VANGUARD DIVERSIFIED VALUE PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) -------------- ------------ At end of period: Accumulation units (000) 288 271 Annuity units (000) - - Accumulation unit value $ 7.947514 $ 9.336800 Net assets (000) $ 2,290 $ 2,532 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -15.02% -6.70%(f)
VANGUARD EQUITY INDEX PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 2,594 2,699 2,498 2,317 1,136 Annuity units (000) - - - - - Accumulation unit value $7.995176 $10.341906 $11.844646 $13.147788 $11.003536 Net assets (000) $ 20,742 $ 27,911 $ 29,588 $ 30,460 $ 12,500 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -22.82% -12.80% -10.01% 19.32% NA
VANGUARD MID-CAP INDEX PORTFOLIO FUND ACCOUNT --------------------------------------------------------------- Year Ended December 31, 2002 2001(b) -------------- ------------ At end of period: Accumulation units (000) 608 210 Annuity units (000) - - Accumulation unit value $ 8.397224 $ 9.912441 Net assets (000) $ 5,104 $ 2,085 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -15.42% -0.95%(f)
VANGUARD SMALL COMPANY GROWTH PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 650 456 440 441 257 Annuity units (000) - - - - - Accumulation unit value $ 8.065415 $10.696387 $10.043462 $10.526480 $ 8.825971 Net assets (000) $ 5,239 $ 4,883 $ 4,416 $ 4,642 $ 2,267 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75%(e) Total return(g) -24.72% 6.36% -4.72% 19.06% NA
VANGUARD INTERNATIONAL PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998(a) -------------- ------------ ----------- ----------- ---------- At end of period: Accumulation units (000) 507 473 218 106 55 Annuity units (000) - - - - - Accumulation unit value $7.120925 $8.670638 $10.881890 $13.154856 $10.386978 Net assets (000) $ 3,611 $ 4,102 $ 2,368 $ 1,400 $ 566 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% (e) Total return(g) -18.02% -20.44% -17.38% 26.46% NA
VANGUARD REIT INDEX PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) -------------- ------------ At end of period: Accumulation units (000) 606 102 Annuity units (000) - - Accumulation unit value $11.252063 $10.950003 Net assets (000) $ 6,819 $ 1,121 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) 2.63% 9.43%(f)
VANGUARD HIGH YIELD BOND PORTFOLIO FUND ACCOUNT ------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ----------- ------------ At end of period: Accumulation units (000) 140 72 Annuity units (000) - - Accumulation unit value $ 9.946870 $ 9.869512 Net assets (000) $ 1,392 $ 707 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) 0.64% -1.37%(f)
VANGUARD MONEY MARKET PORTFOLIO FUND ACCOUNT --------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(c) 2000 1999 1998 ------------ ------------- ----------- ----------- ------------ At end of period: Accumulation units (000) 17,359 24,394 20,126 25,382 18,760 Annuity units (000) - - - - - Accumulation unit value $1.350997 $1.338044 $1.293846 $1.227534 $1.178565 Net assets (000) $ 23,452 $ 32,640 $ 26,041 $ 31,157 $ 22,110 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) 0.86% 3.31% 5.28% 4.01% 4.32%
FIDELITY CONTRAFUND(R) PORTFOLIO FUND ACCOUNT --------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------- At end of period: Accumulation units (000) 244 73 Annuity units (000) - - Accumulation unit value $8.561012 $9.515065 Net assets (000) $ 2,088 $ 690 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -10.17% -4.92%(f)
FIDELITY EQUITY-INCOME PORTFOLIO FUND ACCOUNT --------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------- At end of period: Accumulation units (000) 151 95 Annuity units (000) - - Accumulation unit value $7.771493 $9.427762 Net assets (000) $ 1,170 $ 899 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -17.71% -5.79%(f)
FIDELITY DYNAMIC CAP APPRECIATION PORTFOLIO --------------------------------------------------------------------------------- Year Ended December 31, 2002 2001(b) ------------ ------------- At end of period: Accumulation units (000) 64 24 Annuity units (000) - - Accumulation unit value $7.809482 $8.464990 Net assets (000) $ 499 $ 203 Ratio of expenses to average net assets(d) 0.75% 0.75%(e) Total return(g) -7.90% -15.42%(f)
SCUDDER CAPITAL GROWTH PORTFOLIO FUND ACCOUNT ----------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 ------------ ------------ ------------- ------------- --------------- At end of period: Accumulation units (000) 1,519 1,835 2,082 1,837 1,543 Annuity units (000) - - - - - Accumulation unit value $16.508497 $23.487941 $29.346175 $32.816021 $24.448446 Net assets (000) $ 25,077 $ 43,093 $ 61,092 $ 60,299 $ 37,720 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) -29.77% -20.00% -10.62% 34.14% 22.20%
ALGER AMERICAN GROWTH PORTFOLIO FUND ACCOUNT ----------------------------------------------------------------------------- Year Ended December 31, 2002 2001 2000 1999 1998 ------------ ------------ ------------- ------------- --------------- At end of period: Accumulation units (000) 2,319 2,721 3,059 2,885 2,053 Annuity units (000) 5 5 5 5 5 Accumulation unit value $17.520609 $26.344044 $30.100055 $35.583778 $26.806157 Net assets (000) $ 40,713 $ 71,820 $ 92,232 $ 102,850 $ 55,172 Ratio of expenses to average net assets(d) 0.75% 0.75% 0.75% 0.75% 0.75% Total return(g) -33.54% -12.52% -15.45% 32.67% 46.83%
(a) Variable fund accounts commenced operations May 1, 1998 with an initial accumulation unit value of $10.00 per unit. (b) Variable fund accounts commenced operations May 1, 2001 with an initial accumulation unit value of $10.00 per unit. (c) See accompanying Notes to Financial Statements for information on May 1, 2001 fund substitution. (d) The information for 2002 is based on actual expenses to the contractowner for the period, excluding the expenses of the underlying fund, and charges made directly to contract holder accounts through the redemption of units. Prior years have been restated to exclude the expenses of the underlying fund, and charges made directly to the contract holder accounts through the redemption of units. (e) Annualized. The ratio is not necessarily indicative of 12 months of operations. (f) Not annualized for periods less than one year. (g) The AUV total return figures are computed in accordance with a formula prescribed by the Securities and Exchange Commission, which includes deduction of contract charges. APPENDIX A HYPOTHETICAL ILLUSTRATIONS PART C: OTHER INFORMATION EXHIBITS - -------- A. Resolution of Board of Directors of USAA Life Insurance Company establishing Life Insurance Separate Account of USAA Life Insurance Company. (The resolution is filed in lieu of a trust or indenture creating a unit investment trust.)(1) B. None. C. Form of Underwriting Agreement by and between USAA Life Insurance Company and USAA Investment Management Company (filed herewith). D. Revised Form of Variable Universal Life Insurance Policy (Policy Form No. VUL 31891TX), including riders.(2) E. 1. Revised Form of Application for the Variable Universal Life Insurance Policy filed as Exhibit D.(2) 2. Form of Application for Variable Universal Life Insurance Policy Change.(2) 3. Section 1035 Exchange Form.(2) F. 1. Articles of Incorporation of USAA Life Insurance Company, as amended.(3) 2. Bylaws of USAA Life Insurance Company, as amended, February 20, 2000.(4) G. 1. Novation Agreement among USAA Life Insurance Company, Munich American Reassurance Company, and Continental Assurance Company (acquired by Munich) Effective June 30, 2001 (to be filed by amendment). 2. Self-Administered Automatic Yearly Renewable Term Reinsurance Agreement Between USAA Life Insurance Company and Continental Assurance Company, Effective June 1, 1998 (filed herewith). 3. Risk Premium Reinsurance Agreement between USAA Life Insurance Company and Reinsurance Group of America, Inc. Effective June 1, 1998 (to be filed by amendment). 4. Yearly Renewable Term Reinsurance Agreement between USAA Life Insurance Company and The Lincoln National Life Insurance Company, Effective June 1, 1998 (filed herewith). 5. Automatic Reinusrance Agreement Effective June 1, 1998 between USAA Life Insurance Company and Munich American Reassurance Company (to be filed by amendment). 6. Automatic Reinusrance Agreement Effective June 1, 1998 between USAA Life Insurance Company and American Phoenix Life and Reassurance Company (to be filed by amendment). H. 1. Amended Participation Agreement by and between Scudder Variable Life Investment Fund and USAA Life Insurance Company, dated February 3, 1995, as amended May 21, 1998.(5) 2. Amended Participating Contract and Policy Agreement by and between Scudder Investor Services, Inc. and USAA Investment Management Company, dated February 3, 1995, as amended February 29, 1998.(5) 3. Amended Reimbursement Agreement by and between Scudder Kemper Investments, Inc. and USAA life Insurance Company, dated February 3, 1995, as amended May 21, 1998.(5) 4. Amended Letter Agreement by and between Scudder Kemper Investments, Inc., Scudder Investor Services, Inc., Scudder Variable Life Investment Fund, USAA Life Insurance VUL Part C -- 1 Company and USAA Investment Management Company, dated February 3, 1995, as amended March 16, 1998.(5) 5. Amended Participation Agreement by and between The Alger American Fund, Fred Alger Management, Inc., Fred Alger & Company, Incorporated, and USAA Life Insurance Company, dated December 16, 1994, as amended March 16, 1998.(4) 6. Amended Expense Allocation Agreement by and between Fred Alger Management, Inc., Fred Alger & Company, Inc., and USAA Life Insurance Company, dated December 16, 1994 as amended March 16, 1998.(2) 7. Participation Agreement by and between Vanguard Variable Insurance Funds, The Vanguard Group, Inc., Vanguard Marketing Corporation, and USAA Life Insurance Company, dated March 12, 2001.(9) 8. Participation Agreement by and between Variable Insurance Products Funds, Fidelity Distributors Corporation, and USAA Life Insurance Company, dated February 20, 2001.(9) I. 1. Form of Administrative Services Agreement, by and between USAA Life Insurance Company and USAA Life Investment Trust (filed herewith). 2. Form of Administrative Services Agreement, by and between USAA Life Insurance Company and USAA Investment Management Company (filed herewith). 3. Investment Advisory Agreement by and between USAA Life Investment Trust and USAA Investment Management Company, dated November 1, 2002.(7) 4. Subadvisory Agreement by and between USAA Life Investment Trust and MFS Investment Management with respect to the USAA Life World Growth Fund dated November 1, 2002.(7) 5. Subadvisory Agreement by and between USAA Life Investment Trust and Wellington Management Company LLP with respect to the USAA Life Diversified Assets Fund dated November 1, 2002.(7) 6. Subadvisory Agreement by and between USAA Life Investment Trust and Marsico Capital Management LLC with respect to the USAA Life Aggressive Growth Fund dated November 1, 2002.(7) 7. Transfer Agent Agreement by and between USAA Life Investment Trust and USAA Life Insurance Company, dated December 15, 1994.(8) 8. Letter Agreement by and between USAA Life Investment Trust and USAA Life Insurance Company, appointing USAA Life as the Transfer Agent and Dividend Disbursing Agent for Funds added to Trust, dated February 7, 1997.(8) 9. Amendment to Transfer Agent Agreement by and between USAA Life Investment Trust and USAA Life Insurance Company, to encompass variable universal life insurance, dated February 18, 1998.(8) 10. Amended and Restated Distribution and Administration Agreement by and between USAA Life Insurance Company and USAA Investment Management Company, dated December 16, 1994, and amended and restated, to encompass variable universal life insurance, March 30, 1998.(2) J. None. K. 1. Opinion and Consent of Cynthia A. Toles, Esq., Vice President and Assistant Secretary, USAA Life Insurance Company, as to the legality of the Policy interests being registered.(6) 2. Consent of Kirkpatrick & Lockhart LLP. (Filed herewith) L. Opinion and Consent of Actuary - To be filed by amendment. M. Calculations-To be filed by amendment. N. Other Opinions. 1. Consent of KPMG LLP, Independent Auditors. (Filed herewith.) VUL Part C -- 2 2. Power of Attorney for Robert G. Davis.(1) 3. Powers of Attorney for James M. Middleton, Bradford W. Rich, and Josue Robles, Jr.(3) 4. Powers of Attorney for Russell A. Evenson and Larkin W. Fields.(4) 5. Power of Attorney for Edward R. Dinstel.(9) O. None. P. Not applicable. Q. Not applicable. R. Persons Controlled by or Under Common Control with the Depositor or Registrant (filed herewith). __________________ (1)Previously filed on January 30, 1998, with the initial filing of this Registration Statement. (File No. 333-45343) (2)Previously filed on May 15, 1998, with the Pre-Effective Amendment to Registrant's Form S-6 Registration Statement. (File No. 333-45343) (3)Previously filed on April 27, 2000, with the Post-Effective Amendment No. 3 to Registrant's Form S-6 Registration Statement. (File No. 333-45343) (4)Previously filed on March 1, 2002, with the Post-Effective Amendment No. 5 to Registrant's Form S-6 Registration Statement. (File No. 333-45343) (5)Previously filed on February 26, 1999, with the Post-Effective Amendment No. 1 to Registrant's Form S-6 Registration Statement. (File No. 333-45343) (6)Previously filed on April 27, 2001, with the Post-Effective Amendment No. 4 to Registrant's Form S-6 Registration Statement. (File No. 333-45343) (7)Incorporated herein by reference to Post-Effective Amendment No. 11, filed on February 28, 2003, to the Form N-1A Registration Statement (File No. 33-82270) of USAA Life Investment Trust. (8)Incorporated herein by reference to Post-Effective Amendment No. 6, filed on March 2, 1998, to the Form N-1A Registration Statement (File No. 33-82270) of USAA Life Investment Trust. (9)Previously filed on April 30, 2002, with the Post-Effective Amendment No. 6 to Registrant's Form S-6 Registration Statement. (File No. 333-45343) VUL Part C --3 DIRECTORS AND OFFICERS OF THE DEPOSITOR - --------------------------------------- DIRECTORS. Set forth below are the Directors of USAA Life, the depositor of the Separate Account, who are engaged directly or indirectly in activities relating to the Registrant or the variable universal life policies offered by the Registrant, including each senior executive officer of USAA Life. The principal business address for all of the following Directors and officers of USAA Life is 9800 Fredericksburg Road, San Antonio, Texas 78288.
NAME PRINCIPAL OCCUPATION - ---- -------------------- Robert G. Davis Director and Chairman James M. Middleton Director and Vice Chairman Edward R. Dinstel Director Russell A. Evenson Director Larkin W. Fields Director Bradford W. Rich Director Josue Robles, Jr. Director
OFFICERS (OTHER THAN DIRECTORS). - -------------------------------- Set forth below are the officers of USAA Life, the depositor of the Separate Account, who are engaged directly or indirectly in activities relating to the Registrant or the variable universal life policies offered by the Registrant, including each senior executive officer of USAA Life. The principal business address of each person listed is same as the address of USAA Life, as shown on the cover page of this Prospectus.
NAME POSITIONS & OFFICES WITH USAA LIFE: - ---- ----------------------------------- James M. Middleton President and Chief Executive Officer Edward R. Dinstel Senior Vice President John W. Douglas Senior Vice President Russell A. Evenson Senior Vice President David M. Holmes Senior Vice President and Treasurer Mark S. Rapp Senior Vice President Bradford W. Rich Senior Vice President and Secretary Sharon L. Kaminsky Vice President and Assistant Treasurer Kristi A. Matus Vice President Pattie S. McWilliams Vice President Allen R. Pierce, Jr. Vice President Diana L. Scheel Vice President Cynthia A. Toles Vice President and Assistant Secretary Brenda E. Davis Assistant Vice President Michael P. Egan Assistant Vice President James M. Garvin Assistant Vice President Brian P. McGlinchey Assistant Vice President William J. Nabholz Assistant Vice President and Assistant Secretary Layne C. Roetzel Assistant Vice President Jane B. Wickstrom Assistant Vice President Lynda C. Cabell Assistant Treasurer
PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT - ------------------------------------------------------------------------------ Registrant is a separate account of USAA Life that invests exclusively in mutual funds. Registrant may be deemed to be a control person of one or more of these mutual funds to the extent that it beneficially owns more than 25% of the voting securities thereof. It also may be deemed to be under common control with companies affiliated with its depositor, USAA Life. For further information, please refer to the organizational list that is filed as Exhibit R hereto and incorporated by reference in response to this item. VUL Part C -- 4 INDEMNIFICATION - --------------- UNDERTAKING PURSUANT TO RULE 484(b)(1) UNDER THE SECURITIES ACT OF 1933 Rule 484(b)(1) under the Securities Act of 1933 requires a description of "[a]ny provision or arrangement . . . whereby the registrant may indemnify a director, officer or controlling person of the registrant against liabilities arising under the [Securities] Act." Registrant, the Life Insurance Separate Account of USAA Life Insurance Company, does not, as a technical matter, have any directors or officers. Nevertheless, Registrant, pursuant to Section 13 of the Amended and Restated Distribution and Administration Agreement, may indemnify, albeit indirectly, directors and/or officers of its depositor, USAA Life Insurance Company ("USAA Life"), as follows. Section 13 of such Agreement provides that Registrant shall indemnify the employees of USAA Investment Management Company ("IMCO"), Registrant's principal underwriter. To whatever extent any director or officer of USAA Life may be deemed to be an "employee" of IMCO, Registrant may be deemed to be permitted to indemnify such person pursuant to such Agreement, which is filed as Exhibit 1.(3)(a) to this Registration Statement and is herein incorporated by reference. Additionally, there are certain other provisions or arrangements whereby USAA Life, and/or certain of its affiliated persons, may be indemnified by parties or entities other than Registrant. Such provisions or arrangements are incorporated herein by reference, as follows: to Article IX of the By-Laws of USAA Life, filed as Exhibit 1.6(b) to this Registration Statement; to Section 9 of the Amended and Restated Underwriting and Administrative Services Agreement, filed as Exhibit 1.(8)(a) to this Registration Statement; to Section 12 of the Transfer Agent Agreement, as amended, filed as Exhibit 1.(8)(c) to this Registration Statement; to Section 5(b) of the Amended Participation Agreement, filed as Exhibit 1.8(d)(i) of this Registration Statement; to Section 6(b) of the Amended Reimbursement Agreement, filed as Exhibit 1.8(d)(iii) to this Registration Statement; to Section 12.2 of the Amended Participation Agreement, filed as Exhibit 1.8(e)(i) to this Registration Statement; to the Amended Expense Allocation Agreement, filed as Exhibit 1.8(e)(ii) to this Registration Statement; to Section 7 of the Participation Agreement, filed as Exhibit 1.8(f) to this Registration Statement; and to Section 8 of the Participation Agreement filed as Exhibit 1.8(g) to this Registration Statement. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of Registrant pursuant to the foregoing provisions, or otherwise, Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Registrant of expenses incurred or paid by a director, officer or controlling person of 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, 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. PRINCIPAL UNDERWRITERS - ---------------------- (a) Other Activity. USAA Investment Management Company ("USAA IMCO") is the principal underwriter for the Contracts. USAA IMCO also serves as the investment adviser and principal underwriter to USAA Life Investment Trust, USAA Investment Trust, USAA State Tax-Free Trust, USAA Mutual Fund, Inc., and USAA Tax Exempt Fund, Inc. (b) Management. Set forth below are the Directors and Officers of USAA IMCO who are engaged directly or indirectly in activities relating to the Registrant or the Contracts offered by the Registrant, including each senior executive officer of USAA IMCO. The principal business address for all of the following Directors and Officers of USAA IMCO is 9800 Fredericksburg Road, San Antonio, Texas 78288. Directors with Positions and Offices with USAA IMCO: Robert G. Davis Director and Chairman Christopher W. Claus Director and Vice Chairman
VUL Part C -- 5 Officers with Positions with USAA IMCO: Christopher W. Claus CEO and President Clifford A. Gladson Senior Vice President, Fixed Income Investments David M. Holmes Senior Vice President, Senior Financial Officer and Treasurer Mark S. Howard Senior Vice President, Secretary and Counsel Terri L. Luensmann Senior Vice President, Investment Operations Mark S. Rapp Senior Vice President, Marketing Stuart H. Wester Vice president, Equity Investments
(c) Compensation from Registrant. The following commissions and other compensation were received by each principal underwriter, directly or indirectly, from the Registrant during the Registrant's last fiscal year: None LOCATION OF ACCOUNTS AND RECORDS - -------------------------------- The accounts and records of Registrant are located at the offices of its depositor, USAA Life, located at 9800 Fredericksburg Road, San Antonio, Texas, 78288; the offices of the principal underwriter of the Contracts, USAA IMCO, are located at 9800 Fredericksburg Road, San Antonio, Texas, 78288. FEE REPRESENTATIONS REPRESENTATION REGARDING THE REASONABLENESS OF AGGREGATE FEES AND CHARGES DEDUCTED UNDER THE POLICIES PURSUANT TO SECTION 26(e)(2)(A) OF THE INVESTMENT COMPANY ACT OF 1940 USAA Life Insurance Company ("USAA Life") represents that the fees and charges deducted under the Policies, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company under the Policies. USAA Life bases its representation on its assessment of all of the facts and circumstances, including such relevant factors as: the nature and extent of such services, expenses and risks; the need for USAA Life to earn a profit; the degree to which the Policies include innovative features; and the regulatory standards for exemptive relief under the Investment Company Act of 1940 used prior to October 1996, including the range of industry practice. This representation applies to all Policies sold pursuant to this Registration Statement, including those sold on the terms specifically described in the prospectus contained herein, or any variations therein, based on supplements, endorsements, or riders to any Policies or prospectus, or otherwise. VUL Part C -- 6 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant, Life Insurance Separate Account of USAA Life Insurance Company, has duly caused this amended Registration Statement to be signed on its behalf by the undersigned thereunto duly authorized, in the City of San Antonio, State of Texas, on this 20th day of March, 2003. Signature: Life Insurance Separate Account of USAA Life Insurance Company (Registrant) By: USAA Life Insurance Company (Depositor) (On behalf of Registrant and itself) By: /s/ James M. Middleton --------------------------------- James M. Middleton President and Chief Executive Officer Attest: /s/ Cynthia A. Toles ----------------------------- Cynthia A. Toles Vice President and Assistant Secretary Pursuant to the requirements of the Securities Act of 1933, this amended Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.
(NAME) (TITLE) (DATE) - ------------------------- Chairman March 20, 2003 Robert G. Davis /s/ James M. Middleton Vice Chairman, President and March 20, 2003 - ------------------------- Chief Executive Officer James M. Middleton /s/ Edward R. Dinstel Director March 20, 2003 - ------------------------- Edward R. Dinstel /s/ Russell A. Evenson Director March 20, 2003 - ------------------------- Russell A. Evenson - ------------------------- Director March 20, 2003 Larkin W. Fields /s/ David M. Holmes March 20, 2003 - ------------------------- Treasurer David M. Holmes /s/ Bradford W. Rich March 20, 2003 - ------------------------- Director Bradford W. Rich - ------------------------- Director March 20, 2003 Josue Robles, Jr.
*Signed by Cynthia A. Toles, Attorney-in-fact. 43496v5 VUL Part C -- 7 EXHIBIT INDEX
EXHIBITS PAGE NO. - -------- -------- 1. Form of Underwriting Agreement by and between USAA Life Insurance Company and USAA Investment Management Company 2. Self-Administered Automatic Yearly Renewable Term Reinsurance Agreement Between USAA Life Insurance Company and Continental Assurance Company, Effective June 1, 1998. 3. Yearly Renewable Term Reinsurance Agreement between USAA Life Insurance Company and The Lincoln National Life Insurance Company, Effective June 1, 1998 4. Form of Administrative Services Agreement, by and between USAA Life Insurance Company and USAA Life Investment Trust (filed herewith). 5. Form of Administrative Services Agreement, by and between USAA Life Insurance Company and USAA Investment Management Company (filed herewith). 6. Consent of KPMG LLP, Independent Auditors. 7. Consent of Kirkpatrick & Lockhart, LLP 8. Persons Controlled by or Under Common Control with the Depositor or Registrant
VUL Part C -- 8 EX-1 3 e29675_ex1.txt UNDERWRITING AGREEMENT THIS UNDERWRITING AGREEMENT is made as of ___________________, 200__, by and between USAA INVESTMENT MANAGEMENT COMPANY, a registered broker-dealer organized as a corporation under the laws of the State of Delaware and having a place of business in San Antonio, Texas ("IMCO"), and USAA LIFE INVESTMENT TRUST, a Delaware business trust having a place of business in San Antonio, Texas (the "Trust"). RECITALS The Trust is an open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, whose shares are registered under the Securities Act of 1933 (the "1933 Act"), as amended, and with shares offered in various investment funds ("Funds"); and The Trust presently makes its shares available for purchase to the Separate Account of USAA Life Insurance Company and the Life Insurance Separate Account of USAA Life Insurance Company (the "Separate Accounts"), and may make its shares available to any other separate accounts of USAA Life Insurance Company ("USAA Life") or any of USAA Life's subsidiaries or affiliates, and to separate accounts of non-affiliated life insurance companies (all such eligible purchasers being referred to collectively as "Purchasers"). IMCO is registered as a broker-dealer under the Securities Exchange Act of 1934, is a member of the National Association of Securities Dealers (the "NASD"), is the investment adviser for the Trust, and has agreed to service as principal underwriter for the Trust. AGREEMENT In consideration of the agreements contained herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, the Trust and IMCO agree as follows: 1. APPOINTMENT OF UNDERWRITER The Trust hereby appoints IMCO as principal underwriter and distributor of the Trust to sell its shares to Purchasers, and IMCO hereby accepts such appointment. 2. SALE AND REDEMPTION OF SHARES (a) IMCO shall offer the Trust's shares only on the terms set forth in the current prospectus, including the Statement of Additional Information ("SAI"). IMCO shall not be obligated to sell any specific number of shares. (b) In selling shares of the Trust, IMCO shall use its best efforts in all respects to conform with the requirements of all federal and state laws and regulations and the regulations of the NASD, relating to the sale of such shares. Neither IMCO nor any other person is authorized to give any information or to make any representations, other than those contained in the registration statement or related prospectus of the Trust and any sales literature or advertisements authorized by the Trust. (c) IMCO shall distribute, or shall arrange for others to distribute, prospectuses for the Trust, as required by the Securities and Exchange Commission ("SEC"); and shall comply in all respects with the requirements of all federal and state laws and regulations and the regulations of the NASD, relating to the sale of Trust shares. (d) To the extent permitted by applicable laws and regulations, the Trust reserves the right to suspend the redemption of shares at any time pursuant to the conditions set forth in the prospectus. The Trust shall give IMCO prompt notice of any such suspension and shall promptly furnish such other information in connection with the sale and redemption of Trust shares as IMCO reasonably requests. (e) To the extent required by laws and regulations, IMCO shall cause any sales literature, advertising, or other promotional materials used in connection with its sales of Trust shares to be filed and, if necessary, approved by the NASD, the SEC, or any other required securities regulatory body. 3. INDEPENDENT CONTRACTOR IMCO shall act as an independent contractor and, unless otherwise expressly provided or authorized, shall have no authority to act for or represent the Trust in any way or be deemed an employee of the Trust. IMCO shall be responsible for its own conduct and the employment, control and conduct of its agents and employees, assuming full responsibility for its agents and employees and for injury to such agents or employees or to others through its agents or employees under applicable statutes, and agrees to pay all employer taxes thereunder as well as maintain insurance against public liability in such an amount as the Trust and IMCO may, from time to time, agree. 4. ALLOCATION OF EXPENSES (a) Trust. The Trust will pay (or will enter into arrangements providing for others to pay) for all expenses of the offering of its shares incurred in connection with: i. The preparation, printing, and filing of any registration statement and/or prospectus required to be filed under applicable federal or state securities laws. ii. The preparation, printing, and distribution of prospectuses and periodic reports to existing shareholders and owners of variable annuity contracts and variable life insurance policies issued by USAA Life and funded by the Separate Accounts (collectively "USAA Life Variable Products"), as may be required under applicable federal and state laws and regulations. iii. The preparation, printing, and distribution of any proxy statements, notices, and reports, and the performance of any acts required to be performed by the Trust under applicable federal and state securities laws and regulations. iv. The issuance of Trust shares, including all federal and state, issue and/or transfer taxes, if any. (b) IMCO. IMCO will pay (or will enter into arrangements providing for others to pay) for all expenses of the offering of Trust shares incurred in connection with: i. The printing and distribution of the Trust's prospectuses that are to be used in connection with the marketing of USAA Life Variable Products. ii. The preparation, printing and distribution of advertising and sales literature for use in the offering of the Trust's shares, and the printing and distribution of reports to shareholders used as sales literature. 2 iii. The qualification of IMCO as a distributor or broker or dealer under any applicable federal or state securities laws or regulations. (c) IMCO agrees that it shall receive no compensation for the performance of its duties under this Agreement, except as otherwise specifically provided herein. No commission or other fees shall be charged or paid to any person or entity in connection with the sale of Trust shares under this Agreement. 5. INDEMNIFICATION BY IMCO IMCO shall indemnify and hold harmless the Trust and each of its Trustees and officers (or former Trustees and officers), and each person, if any, who controls the Trust within the meaning of Section 15 of the 1933 Act ("Indemnitees") against any loss, liability, claim, damage, or expense (including reasonable cost of investigation and defense against the same and any counsel fees reasonably incurred in connection therewith) incurred by any Indemnitees under the 1933 Act or under common law or otherwise, which arise out of or are based upon (1) any untrue or alleged untrue statements of a material fact contained in information furnished to the Trust by IMCO for use in the Trust's registration statement, prospectus, or annual or interim reports, (2) any omission or alleged omission to state a material fact in connection with such information furnished by IMCO to the Trust that is required to be stated in any of such documents or necessary to make such information not misleading, (3) any misrepresentation or omission or alleged misrepresentation or omission to state a material fact on the part of IMCO or any agent or employee of IMCO or any other person for whose acts IMCO is responsible, unless such misrepresentation or omission or alleged misrepresentation or omission was made in reliance on information furnished by the Trust, or (4) the willful misconduct or failure to exercise reasonable care and diligence on the part of IMCO or any agent or employee of IMCO or any other person for whose acts IMCO is responsible with respect to services rendered under this Agreement. This indemnity provision, however, shall not operate to protect any Trustee or officer of the Trust from any liability to the Trust by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties. In case any action shall be brought against any Indemnitee, IMCO shall not be liable under its indemnity agreement contained in this paragraph with respect to any claim made against any Indemnitee, unless the Indemnitee shall have notified IMCO in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon the Indemnitee (or after the Indemnitee shall have received notice of such service on any designated agent), but failure to notify IMCO of any such claim shall not relieve it from liability to the Indemnitees against whom such action is brought otherwise than on account of this Section 6. IMCO will be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any such liability, but if IMCO elects to assume the defense, such defense shall be conducted by counsel chosen by it and satisfactory to the Indemnitees which are defendants in the suit. In the event IMCO elects to assume the defense of any such suit and retain such counsel, the Indemnitees that are defendants in the suit shall bear the fees and expenses of any additional counsel retained by them, but, in case IMCO does not elect to assume the defense of ay such suit, IMCO will reimburse the Indemnitees which are defendants in the suit for the reasonable fees and expenses of any counsel retained by them. IMCO shall promptly notify the Trust of the commencement of any litigation or proceedings in connection with the issuance or sales of shares. The foregoing rights of indemnification shall be in addition to any other rights to which the Trust or a Trustee may be entitled as a matter of law. 6. INDEMNIFICATION BY TRUST The Trust agrees to indemnify and hold harmless IMCO and each person who has been, is, or may hereafter be, an officer, director, employee or agent of IMCO against any loss, damage or expense reasonably incurred by any of them in connection with any claim or in connection with any action, suit, or 3 proceeding to which any of them may be a party, which arises out of or is alleged to arise out of or is based upon any untrue or alleged untrue statement of material fact, or the omission or alleged omission to state a material fact necessary to make the statements therein not misleading, contained in the Trust's registration statement or prospectus, or any amendment or supplement thereto, unless such statement or omission was made in reliance upon written information furnished by IMCO. The foregoing rights of indemnification shall be in addition to any other rights to which IMCO may be entitled as a matter of law. 7. DURATION AND TERMINATION OF AGREEMENT (a) This Agreement shall become effective on the date set forth above and, unless terminated, shall remain in full force and effect from year to year thereafter, but only so long as such continuance is specifically approved at least annually by (i) the Board of Trustees, or by a majority of the outstanding voting securities of the Trust, cast in person or by proxy; and (ii) a majority of those Trustees who are not parties to this Agreement or interested persons of any such party cast in person at a meeting called for the purpose of voting on such approval. (b) Notwithstanding the provisions of paragraph (a), the Board of Trustees may, from time to time, establish a new effective date for the continuance of this Agreement with respect to any current or additional Fund, provided that such new effective date precedes the then current termination date of the Agreement. (c) This Agreement may be terminated at any time without payment of penalty, by the Board of Trustees, or by IMCO on 60 days' written notice to the other party. 8. AMENDMENT This Agreement may be amended at any time by mutual agreement in writing of the parties hereto, provided that any such amendment is approved by a majority of the Trustees of the Trust who are not interested persons. 9. ASSIGNMENT This Agreement shall automatically terminate in the event of its assignment (as defined in section 2(a)(4) of the 1940 Act) by IMCO; provided, however, that IMCO may employ such other person, persons, corporation, or corporations, as it shall determine, in order to assist it in carrying out this Agreement. 10. GOVERNING LAW This Agreement shall be construed in accordance with the laws of the state of Texas and the applicable provisions of the 1940 Act. To the extent the applicable law of the state of Texas, or any of the provisions herein, conflict with the applicable provisions of the 1940 Act, the latter shall control. 11. CONFIDENTIALITY IMCO shall not disclose or use any records or information obtained hereunder in any manner whatsoever except as expressly authorized hereunder, and further, shall keep confidential any information obtained pursuant to this Agreement with the Trust as set forth herein, and disclose such information only if the Trust has authorized such disclosure, or if such disclosure is expressly required by applicable federal or state regulatory authorities. 4 12. PRIOR AGREEMENT SUPERSEDED This Agreement supersedes any prior agreement relating to the subject matter hereof between the parties. 13. ENTIRE AGREEMENT This is the complete and entire Agreement as represented herein. IN WITNESS WHEREOF, the parties execute this Agreement on the date above. USAA INVESTMENT MANAGEMENT COMPANY USAA LIFE INVESTMENT TRUST By: ______________________________ By: _________________________ Christopher W. Claus James M. Middleton President President 5 EX-2 4 e29675_ex2.txt T SELF ADMINISTERED AUTOMATIC YEARLY RENEWABLE TERM REINSURANCE AGREEMENT CEDING COMPANY: USAA LIFE INSURANCE COMPANY OF SAN ANTONIO, TEXAS (hereinafter referred to as the Ceding Company) REINSURER: CONTINENTAL ASSURANCE COMPANY OF CHICAGO, ILLINOIS (hereinafter referred to as the Reinsurer) ACCEPTED COVERAGES: As defined in the Accepted Coverages Schedule EFFECTIVE DATE: June 1, 1998 Commencing on the Effective Date, the Ceding Company may submit any of its excess insurance risks under Accepted Coverages subject to the provisions of this Agreement. This Agreement consists of the following sections: SECTION I AUTOMATIC REINSURANCE SECTION II BASIS OF REINSURANCE AND PREMIUMS SECTION III STANDARD PROVISIONS SECTION IV SPECIAL PROVISIONS SECTION V SCHEDULES These sections or parts of these sections may be changed or modified only upon written agreement between the Ceding Company and the Reinsurer. SECTION IA AUTOMATIC REINSURANCE A. The Reinsurer will automatically accept reinsurance on a risk subject to the following conditions: 1. The Ceding Company has kept amounts equal to the retention limits shown in the Retention Limits Schedule. 2. The risk has been classified in a mortality class according to the normal underwriting rules of the Ceding Company, as reviewed and approved in writing by the Reinsurer. 3. The Reinsurer will automatically accept its proportionate share for policies on which the Ceding Company did not keep the full retention shown in the Retention Limits Schedule. 4. For the Accepted Coverage, the Ceding Company will not change its existing underwriting, issuance or reinsurance practices in effect on or after the effective date, unless the Ceding Company notifies the Reinsurer in writing and the Reinsurer approves in writing of such change(s). 5. The amount to be reinsured under this agreement does not exceed the automatic acceptance limits shown in the Automatic Acceptance Limits Schedule. 6. The total amount applied for and in force in all companies on the risk to be reinsured does not exceed $25,000,000 for life insurance. 7. The issue age of the life insured does not exceed 80. 8. The risk has not been submitted to the Reinsurer or any other Reinsurer for facultative underwriting. 9. The substandard mortality rating assessed to the risk does not exceed Table 16 or its equivalent on an extra-premium basis. 10. The insurance is not the result of a group conversion, other conversion, exchange or reissue where full evidence of insurability has not been obtained. 11. The amount of any life insurance to be reinsured is not less than $1,000. 12. The applicant is a permanent resident of the U.S. or Canada. 13. The applicant is not a member of a professional sports team. B. The Ceding Company shall notify the Reinsurer within 30 days after the original insurance is placed on forms approved by the Reinsurer. SECTION IA (CONTINUED) CONDITIONAL RECEIPT LIABILITY - ----------------------------- All conditional receipt forms on applications used on the Accepted Coverages must be approved in writing by the Reinsurer prior to any reinsurance being accepted under this agreement. If the Ceding Company is liable for a death claim under a conditional receipt upon a life insurance application, the Reinsurer must have previously given written approval of that Conditional Receipt. Such approval shall be included in the Conditional Receipt Approval Schedule, (F). The limit of the Reinsurer's liability under the Conditional Receipt will be the lesser of: 1. The Ceding, Company's limit of liability as specified in the Conditional Receipt Schedule, (F-l), or 2. $1,000,000. This amount shall be reduced by the sum of the amount of insurance which the Ceding Company would retain on the life according to its retention limits as stipulated in the Retention Limits Schedule, (A), and the amount of insurance that the Ceding Company would reinsure with other companies, if any, on a portion of such risk. In the event that there are multiple reinsurers, the Reinsurers position shall be determined on the same basis as in determining the portion of the reinsurance the Reinsurer will be receiving. 1. The Reinsurer must have previously given written approval of that conditional receipt. Such approval shall be included in Schedule F 2. The Reinsurer must have automatically accepted the risk on a policy issued from the life insurance application. SECTION IB FACULTATIVE REINSURANCE A. The Ceding Company may submit accepted coverages facultativly on risks that exceed the Automatic Acceptance Limits in Schedule B, or as part of a facultative program under which the Ceding Company may keep a zero retention. Continental may decline to quote on specific facultative risks. B. In order to apply for facultative reinsurance the Ceding Company shall mail to the Reinsurer an application for reinsurance, copies of the original application, all medical examination, microscopical reports, inspection reports and all other information which the Ceding Company has pertaining to the insurability of the risk. Any other information subsequently available to the Ceding Company which is pertinent to the question of assuming the risk shall be transmitted promptly to the Reinsurer. The Reinsurer will have the option of declining or making an offer on any application for facultative reinsurance. C. Facultative submissions that are submitted to more than one reinsurer will be ceded to the reinsurer making the best offer. In situations where identical offers are received, the risk will be ceded proportionately to each reinsurer. D. The Reinsurer shall have no liability on a facultative submission by the Ceding Company until an unconditional offer to reinsure has been made in writing by the Reinsurer and accepted in writing by the Ceding Company. The Reinsurer's unconditional offer will expire at the end of ninety (90) days from the date of the unconditional offer, unless an earlier date is specified in the offer. E. The Ceding Company will submit to the Reinsurer any additional information requested on all pending applications within ninety (90) days from the Reinsurer's request or the Reinsurer will close its file on the case. F. The Reinsurer will not incur any liability under any Conditional Receipt issued by the Ceding Company for a risk submitted to the Reinsurer on a facultative basis. SECTION II ---------- BASIS OF REINSURANCE AND PREMIUMS A. Life insurance will be reinsured on the Yearly Renewable Term Plan (YRT) for the net amount at risk. The amount at risk reinsured with the Reinsurer shall not at any point exceed the initial amount ceded to the Reinsurer. The net amount at risk each year will be determined as follows: 1) For Universal Life policies the reinsured net amount at risk shall be calculated by the Ceding Company using their normal calculations and the reinsurance amount adjusted quarterly. This reinsured amount will be in proportion to the Ceding Company's net amount at risk, less retention, if applicable. 2) For other life policies, the reinsured net amount at risk is the face amount reinsured less the interpolated cash value at the end of the year. During the first 10 years, interpolated cash values will be determined by a straight line interpolation between zero and the actual l0th year cash value. During the second 10 years, interpolated cash values will be determined by a straight line interpolation between the actual 10th year and the actual 20th year cash values. Interpolated cash values in each succeeding 10-year period will be calculated in a consistent manner. 3) Cash values for term plans with a coverage period of 20 years or less are considered nil. B. Reinsurance premiums are to be paid annually in advance and will be determined as follows: 1) For Life insurance on a risk classified as standard, the premium rates in the Premium Rates Schedule shall apply. 2) For Life insurance on a risk classified as multiple table substandard, the appropriate rates from the Premium Rates Schedules will be increased by the appropriate multiples as defined in the Premium Rates Schedules. 3) For Life insurance issued with flat extra premiums, of five years or less, the premiums determined in accordance with Paragraphs (1) or (2) of this provision will be increased in all policy years or until premiums cease or rating removed by 90% of the extra premiums applicable to the initial amount reinsured. 4) For Life insurance issued with flat extra premiums of more than five years, the premiums will be increased in the initial policy years by 10% of the extra premiums and in all subsequent years by 90% of the extra premiums. 5) The reinsurance premium rates for Disability Waiver of Premium Benefits risk will be 25% of the annual rate charged for the benefits in the original policies for the first year, and 85% of this annual rate for renewal years. SECTION II ---------- (CONTINUED) BASIS OF REINSURANCE AND PREMIUMS B. 6) The reinsured disability waiver of premium benefit shall be the policyholder's waived gross premium which corresponds to the Reinsurer's portion of the life insurance risk. The Ceding Company remains obligated to pay reinsurance premiums to the Reinsurer while the insured life is disabled. 7) The reinsurance premium rates for insurance benefits issued as a result of a continuation, as defined in Section III. D, are shown in the Premium Rates Schedules. The premium rates are to be entered based on the age at issue and duration since issue of the original insurance. Portions of a year will be considered one full duration. C. The rates in the YRT Premium Rates Schedule are guaranteed for one year from the effective date of the treaty. D. PAYMENT OF REINSURANCE PREMIUMS 1) Within 45 days following the close of the calendar month, the Ceding Company will forward to the Reinsurer a statement of premium due. The statement will show the premiums due on any new reinsurance effected during the month, renewal premiums and any adjustments due to changes or termination, in accordance with the reporting requirements. 2) The Ceding Company will remit a check for the balance indicated to the Reinsurer along with the statement of premium due or will submit a request for payment of any net amount due the Ceding Company. 3) If any reinsurance premium is not paid within the allotted time, the Reinsurer may terminate the Reinsurance on all new and existing inforce by giving the Ceding Company written notice. The Ceding Company will be liable for the payment of reinsurance premium to the effective date of termination plus the termination charge specified in Section III, K. Failure by the Reinsurer to exercise its right under this paragraph in any specific situation will not be a waiver of the Reinsurer's right to do so at a later date. The Reinsurer may, at its option, reinstate the reinsurance at any time within sixty (60) days following such termination if the Ceding Company makes payment, with interest, of all reinsurance premiums due and payable up to the date of reinstatement and provides full disclosure of all claims incurred between dates of termination and reinstatement. Interest shall be calculated using the 7 year Constant Maturity Treasury rate reported for the last working date of that calendar month in the Federal Reserve H15 Report. The Reinsurer shall be liable for reinsurance on only those claims incurred by the Ceding Company between the dates of termination and reinstatement that the Ceding Company disclosed. All such claims shall be subject to the claims provisions specified in Section III SECTION II ---------- (CONTINUED) D. PAYMENT OF REINSURANCE PREMIUMS 4) Balances remaining unpaid for more than 45 days from the date due will incur interest calculated from that date using the 7 year Constant Maturity Treasury rate reported for the last working day of that calendar month in the Federal Reserve H15 Report. 5) The Ceding Company and the Reinsurer may exercise at any time, the right to offset any undisputed debts or credits, liquidated or unliquidated, whether on account of premiums or on account losses or otherwise, due from either party to the other under this agreement or under any other Reinsurance Agreement with the Reinsurer. E. QUARTERLY RESERVE AND VALUATION INFORMATION The Ceding Company shall submit information for valuation and reserve calculation by the 20th of the month following the close of each calendar quarter. F. BULK REPORTING REQUIREMENTS The Ceding Company will not change its existing self administered reporting practices in effect on or after the effective date, unless the Ceding Company notifies the Reinsurer in writing. SECTION III ----------- STANDARD PROVISIONS A. ERRORS AND OMISSIONS This Agreement shall not be abrogated by the failure of either the Ceding Company or the Reinsurer to comply with any of the terms of this Agreement if it is shown that said failure was unintentional and the result of a misunderstanding, oversight or clerical error on the part of either the Ceding Company or the Reinsurer. Both parties shall be returned to the position they would have occupied had no such oversight, misunderstanding or clerical error occurred. This provision shall not apply if the Ceding Company fails to notify the Reinsurer in writing of its unconditional acceptance of an offer for reinsurance made by the Reinsurer upon receipt of a facultative application from the Ceding Company. This provision shall cease five years after the termination of the last policy known to be reinsured under this agreement. B. TERMINATIONS OF AND CHANGES TO INSURANCE RISKS 1) If the Ceding Company retains a portion of the risk on the policy (ies) reinsured under this agreement and any portion of the Ceding Company's insurance risk on the life of the insured terminates or reduces, whether or not covered by this agreement, the reinsurance will be reduced in proportion to the original policy. 2) The Ceding Company will notify the Reinsurer of all policy terminations, deaths and changes that affect the reinsurance as they occur. Unearned reinsurance premiums will be refunded except that cession fees as defined in the Premium Rates Schedule are not refundable on any off anniversary termination. 3) If the reinsured net amount at risk on any policy falls below $1,000 the cession will be terminated. C. REINSTATEMENTS 1) If an insurance policy on a life on which reinsurance has been accepted facultatively by the Reinsurer lapses for nonpayment of premiums, copies of the application for reinstatement and any other relevant papers shall be referred to the Reinsurer for its underwriting evaluation prior to actual reinstatement by the Ceding Company. The Reinsurer will notify the Ceding Company in writing of its underwriting decision on all such reinstatement requests. A reinstatement notice shall be mailed to the Reinsurer as soon as possible after reinsurance is effected. 2) In connection with all reinstatements, the Ceding Company shall pay to the Reinsurer all reinsurance premiums in arrears. SECTION III ----------- (CONTINUED) D. CONTINUATIONS Continuation of a policy reinsured under this agreement shall remain reinsured with the Reinsurer under this agreement or another agreement between the Ceding Company and the Reinsurer. For the purpose of this agreement, continuations shall be defined as an exchange, conversion or reissue of any policy that was originally reinsured with the Reinsurer. E. FORMS The Ceding Company shall furnish the Reinsurer with any specimen copies of its applications, policy forms, rider forms and any tables of rates and values which may be required for the proper administration of the business reinsured under this agreement, and shall keep the Reinsurer informed with documentation as to any modifications or new forms under which reinsurance may be desired. F. CLAIMS 1) The Ceding Company will notify the Reinsurer of each claim promptly after first receipt of such information. The Reinsurer shall be consulted before admission or acknowledgment of claim liability is made by the Ceding Company if: a) The claim is in the contestable period, or b) The amount retained by the Ceding Company is less than the total amount reinsured in all companies. 2) The Ceding Company will promptly notify the Reinsurer of its intention to contest insurance reinsured under this agreement or to assert defenses to a claim for such insurance. If the Reinsurer agrees to participate in the contest or assertion of defenses and the Ceding Company's contest of such insurance results in the reduction of its liability, the Reinsurer will share in such reduction in proportion to the Reinsurer's liability, the Reinsurer will pay its share of the unusual expenses of the contest in addition to its share of the claim itself. Routine expenses incurred in the normal settlement of uncontested claims, including interpleader cases, and the salary of an officer or employee of the Ceding Company are excluded from this provision. If the Reinsurer declines to participate in the contest or assertion of defenses, the Reinsurer will discharge all of its liability by payment of the full amount of the reinsurance to the Ceding Company. 3) Copies of the proofs of claim obtained by the Ceding Company, together with the amount payable or paid on such claim, will be furnished to the Reinsurer as soon as possible. SECTION III ----------- (CONTINUED) F. CLAIMS 4) The Reinsurer will be liable to the Ceding Company for the benefits reinsured hereunder to the same extent as the Ceding Company is liable to the Insured for such benefits, and all reinsurance will be subject to the terms and conditions of the policy under which the Ceding Company will be liable. 5) For life and accidental death claims, the Reinsurer will pay its share in a lump sum to the Ceding Company without regard to the form of claim settlement of the Ceding Company. For a waiver of premium disability claim, the Reinsurer will pay its share of each gross premium as the premiums are waived by the Ceding Company. 6) The Reinsurer agrees to pay to the Ceding Company a proportionate share of any interest paid out to the claimant by the Ceding Company. The Reinsurer's liability to pay interest will be discharged on the date that the Reinsurer issues payment to the Ceding Company. 7) Claims remaining unpaid for more then 30 days after the receipt of final papers will incur interest calculated from that date using the 7 year Constant Maturity Treasury Rate reported for the last working date of that month in the Federal Reserve H15 Report. 8) The Reinsurer reserves the right to withhold any claim payments in accordance to Section II, D-5. 9) In the event the amount of insurance provided by a policy or policies reinsured hereunder is increased or reduced because of a misstatement of age or sex established after the death of the insured, the Reinsurer will share in the increase, up to The Reinsurer's maximum limit, or reduction in the proportion that the net liability of the Reinsurer bore to the sum of the retained net liability of the Ceding Company and the net liability of other reinsurers immediately prior to such increase or reduction. The reinsurance with the Reinsurer shall be rewritten from commencement on the basis of the adjusted amounts using premiums and reserves at the correct age, and sex. The adjustment for the difference in premiums shall be made without interest. 10) In no event will the Reinsurer participate in punitive or compensatory damages which are awarded against the Ceding Company as a result of an act, omission or course of conduct committed solely by the Ceding Company in connection with the insurance reinsured under this Agreement, the Reinsurer will, however, pay its share of statutory penalties awarded against the Ceding Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. SECTION III ----------- (CONTINUED) F. CLAIMS 11) The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party and directed, consented to, or ratified the act, omission, or course of conduct of the Ceding Company which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, the Ceding Company and the Reinsurer would share such damages so assessed in equitable proportions. Routine expenses incurred in the normal settlement of uncontested claims, in the submission of interpleaders and the salary of an officer or employee of the Ceding Company are excluded from this provision. For purposes of this provision, the following definitions shall apply: "Punitive Damages" are those damages awarded as a penalty, the amount of which is not governed nor fixed by statute; "Statutory Penalties" are those amounts which are awarded as a penalty, but fixed in amount by statute; "Compensatory Damages" are those amounts awarded to compensate for the actual damages sustained, and are not awarded as penalty, nor fixed in amount of statute. G. RECAPTURE PRIVILEGE If the Ceding Company increases its retention limits, the Ceding Company may reduce the reinsurance in accordance with the following provisions: 1) The Ceding Company kept its full retention in accordance with the retention limits in effect when the original insurance was issued. (Refer to the Retention Limits Schedule). 2) The Life and Waiver of Premium Benefits in the policy must have been reinsured with the Reinsurer for a period of ten (10) years. 3) The reduction in the reinsurance of Accidental Death Benefits will be effective on the first policy anniversary following the notice of election to recapture. 4) The amounts recaptured from all reinsurers will be sufficient to increase the Ceding Company's retention on the risk to the new limits. SECTION III ----------- (CONTINUED) G. RECAPTURE PRIVILEGE 5) If there are other reinsurers, the reduction on the Reinsurer's risk will be determined according to the Reinsurer's portion of the total reinsurance on the risk. 6) If the reinsurance is reduced on any risk, similar reductions will be made on all risks eligible for recapture. This includes policies currently on waiver of premium claim. H. INSPECTION OF RECORDS The Reinsurer shall have the right, at any reasonable time, to inspect, at the office of the Ceding Company, all books, records and documents relating to the reinsurance under this Agreement. I. INSOLVENCY 1) In the event of insolvency of the Ceding Company, the Reinsurer's liability for claims will continue to be in accordance with the terms of the agreement. Payment of reinsurance claims less any reinsurance premiums due the Reinsurer will be made directly to the liquidator, receiver or statutory successor of the Ceding Company without diminution of the insolvency of the Ceding Company. 2) In the event of insolvency of the Ceding Company, the liquidator, receiver or statutory successor will give the Reinsurer written notice of any pending claim and the Reinsurer may, at its own expense, investigate the claim and interpose any defense which it deems appropriate to the Ceding Company or its liquidator, receiver or statutory successor. If the Ceding Company benefits from the defense undertaken by the Reinsurer, an equitable share of the expenses incurred by the Reinsurer will be chargeable to the Ceding Company as part of the expense of liquidation. 3) In the event of insolvency of either the Ceding Company or the Reinsurer, any debts or credits due the other party, whether matured or unmatured, under this Agreement or any other agreement, which exist on the date of the entry of a receivership or liquidation order, shall be deemed mutual debts or credits as the case may be and shall be set off and only the balance shall be allowed or paid. 4) The Reinsurer's liability will not increase as a result of the insolvency of the Ceding Company. J. PARTIES TO THE AGREEMENT This is an Agreement for indemnity reinsurance solely between the Ceding Company and the Reinsurer. The acceptance of reinsurance hereunder shall not create any right or legal relation whatever between the Reinsurer and any insured or any beneficiary under any policies of the Ceding Company which may be reinsured hereunder. SECTION III ----------- (CONTINUED) K. TERMINATION CHARGE If the Reinsurer exercises its rights to terminate all new and existing inforce reinsurance as stipulated under Section II D,3, an appropriate charge will be determined by, and paid to, the Reinsurer. Such termination charge will be determined so as to approximate the excess of deferred acquisition expenses plus equity in unearned premium reserve over the benefit reserve plus unearned premium reserve for the business being terminated hereunder. The calculation of the components of the charge will be the Reinsurer's usual calculation methods and will be in accordance with the GAAP principals as outlined in FAS60 or FAS97, as appropriate. L. DURATION OF AGREEMENT This Agreement will be effective on and after the Effective Date stated on the cover page. Other than for nonpayment of reinsurance premiums and/or failure to comply with reporting requirements, as provided in the Reporting Requirements Schedule, the Agreement is unlimited in duration but may be amended by mutual consent of the Ceding Company and the Reinsurer. This Agreement may be terminated as to new reinsurance by either party's giving ninety (90) days written notice to the other. However, if the Ceding Company changes its underwriting rules and the Reinsurer does not approve of such changes in writing, this Agreement may be terminated for new business immediately by the Reinsurer. Termination as to new reinsurance does not affect existing reinsurance. M. ARBITRATION 1) It is the intention of the Reinsurer and the Ceding Company that the customs and practices of the insurance and reinsurance industry shall be given full effect in the operation and interpretation of this Agreement. The parties agree to act in all things with the highest good faith. If the Reinsurer or the Ceding Company cannot mutually resolve a dispute which arises out of or relates to this Agreement however, the dispute shall be decided through arbitration. 2) Disagreements between the Reinsurer and the Ceding Company will be submitted to three arbitrators who must be officers of other life insurance companies. Within sixty (60) days of the date of notice of the intent to submit the dispute to arbitration, the Reinsurer and the Ceding Company will each appoint one arbitrator and the third will be selected by these two arbitrators. If agreement cannot be reached on the selection of the third arbitrator, each arbitrator shall nominate three (3) candidates within ten (10) days thereafter, two of whom the other shall decline, and the decision shall be made by drawing lots. SECTION III ----------- (CONTINUED) M. ARBITRATION 3) The arbitrators shall base their decision on the terms and conditions of this Agreement plus, as necessary, on the customs and practices of the insurance and reinsurance industry rather than solely on a strict interpretation of the applicable law. There shall be no appeal from their decision, and any court having jurisdiction of the subject matter and the parties may reduce that decision to judgment. 4) The arbitration hearing shall be held on the date fixed by the arbitrators. In no event shall this date be later than six (6) months after the appointment of the third arbitrator. As soon as possible, the arbitrators shall establish prearbitration procedures as warranted by the facts and issues of the particular case. At least ten (10) days prior to the arbitration hearings, each party shall provide the other party and the arbitrators with a detailed statement of the facts and arguments it will present at the arbitration hearing. The arbitrators may consider any relevant evidence; they shall give the evidence such weight as they deem it entitled to after consideration of any objections raised concerning it. The party initiating the arbitration shall have the burden of proving its case by a preponderance of the evidence. Each party may examine any witnesses who testify at the arbitration hearing. Within twenty (20) days after the end of the arbitration hearing, the arbitrators shall issue a written decision. In their decision, the arbitrators shall apportion the costs of arbitration, which shall include but not be limited to their own fees and expenses, as they deem appropriate. N. CURRENCY All currency will be payable in United States dollars. O. CHOICE OF LAW AND FORUM Illinois law shall govern the terms and conditions of the Agreement. In the case of an arbitration, the arbitration hearing shall take place in Chicago, Illinois, and the Uniform Arbitration Act shall control except as provided in Section III, M, of this Agreement. P. ENTIRE CONTRACT This agreement shall constitute the entire agreement between the parties with respect to the business being reinsured thereunder and that there are no understandings between the parties other than in the agreement. Any changes or modifications to the agreement shall be null and void unless made by amendment to the agreement and signed by both parties. SECTION III ----------- (CONTINUED) Q. DAC TAX ELECTION STATEMENT The Ceding Company and the Reinsurer hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulation issued December 1992, under Section 848 of the Internal Revenue Code of 1986, as amended. This election shall be effective for 1992 and all subsequent taxable years for which this agreement remains in effect. 1) The term "party" will refer to either the Ceding Company or the Reinsurer as appropriate. 2) The terms used in this article are defined by reference to Regulation 1.848-2 in effect December 1992. 3) The party with net positive consideration for this agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this agreement without regard to the general deductions limitation of Section 848(c)(l). 4) Both parties agree to exchange information pertaining to the amount of net consideration under this agreement each year to ensure consistency or is otherwise required by the Internal Revenue Service. 5) The Reinsurer will submit a schedule to the Ceding Company by February 1, of each year of its calculation of the net consideration for the preceding calendar year. This schedule will be accompanied by a statement stating that the Reinsurer will report such net consideration in its tax return for the preceding calendar year. 6) The Ceding Company may contest such calculation by providing an alternative calculation to the Reinsurer within 30 days of the Ceding Company's receipt of the Reinsurer's calculation. If the Ceding Company does not so notify the Reinsurer. The Reinsurer will report the net consideration as determined by the Reinsurer in the Reinsurer's tax return for the previous calendar year. 7) If the Ceding Company contests the Reinsurer's Calculation of the net consideration, the parties will act in good faith to reach an agreement as to the correct amount within 30 days of the date the Ceding Company submits its alternative calculation. If the Ceding Company and the Reinsurer reach agreement on an amount of the net consideration, each party shall report such amount in their respective tax returns for the previous calendar year. SECTION IV ---------- SPECIAL PROVISIONS NONE Signed for the Reinsurer: Continental Assurance Company of Chicago, Illinois By: /s/ Attest: /s/ ----------------------- ----------------------------- Senior Vice President, Assistant Secretary Life Reinsurance Date of Signatures: January 22, 1999 ------------------------------------ Signed for the Ceding Company: By: /s/ Attest: /s/ ----------------------- ----------------------------- Title: AVP - ACTUARY Title: VP Date of Signatures: February 15, 1999 ------------------------------------ SECTION V --------- SCHEDULES SCHEDULE A RETENTION SCHEDULE SCHEDULE B AUTOMATIC ACCEPTANCE SCHEDULE SCHEDULE C ACCEPTED COVERAGE SCHEDULE SCHEDULE D PREMIUM RATE SCHEDULE SCHEDULE E YRT PREMIUM RATE SCHEDULE SCHEDULE F CONDITIONAL RECEIPT SCHEDULE E SCHEDULE A RETENTION LIMITS SCHEDULE A. LIFE The Ceding Company retains 10% of each risk up to the maximum shown in the tables below: NON MILITARY LIFE (MALE AND FEMALE)
- ------------------------------------------------------------------------- Standard - Table 4 Tables 5-8 Tables 9 and Over and Flat Extras and Flat Extras and Flat Extras Ages to $10.00 $10.01 to $20.00 $20.01 and Over ========================================================================= All $600,000 $600,000 $600,000 - -------------------------------------------------------------------------
NOTE: The Ceding Company retains an additional $100,000 if by so doing can eliminate the need for reinsurance. ENLISTED MILITARY PERSONNEL ON ACTIVE DUTY
- ----------------- Ages Retention ================= All $50,000 - -----------------
The maximum issue limit for this program is $200,000 MILITARY LIFE (MALE AND FEMALE)
- -------------------------------- Rank Retention ================================ W0 through 0 - 3 $250,000 0 - 4 and above $350,000 - --------------------------------
B. WAIVER OF PREMIUM DISABILITY (Male and Female) (Standard and Substandard)
- ----------------------- Ages Face Amount ======================= 15 - 55 $600,000 - -----------------------
C. ACCIDENTAL DEATH BENEFITS - Not reinsured under this Agreement SCHEDULE B AUTOMATIC ACCEPTANCE SCHEDULE The Reinsurer will automatically accept 30% of the pool risk up to the maximum shown in the following tables: NON MILITARY LIFE (MALE AND FEMALE)
- ------------------------------------------------------------------------- Standard - Table 4 Tables 5 - 8 Tables 9 and Over and Flat Extras and Flat Extras and Flat Extras Ages to $10.00 $10.01 - $20.00 $20.01 - and Over ========================================================================= All $6,000,000 $6,000,000 $6,000,000 - -------------------------------------------------------------------------
ENLISTED MILITARY PERSONNEL ON ACTIVE DUTY
- ----------------- Ages Retention ================= All $500,000 - -----------------
MILITARY LIFE (Male and Female)
- ---------------------------------- Rank Retention ================================== W0 through 0 - 3 $2,500,000 0 - 4 and above $3,500,000 - ----------------------------------
SCHEDULE C ACCEPTED COVERAGE SCHEDULE Variable Universal Life Waiver of Premium All business will be self-administered. Recapture Period will be ten years. SCHEDULE D PREMIUM RATE SCHEDULE Premium rates will be on a YRT basis using the following percentages of the '91 Bragg rates shown as Schedule D:
- -------------------------------------------------------------- First Year Renewal ============================================================== Preferred Ultra Non-Tobacco 0% 29% Preferred Plus Non-Tobacco 0% 35% Preferred Non-Tobacco 0% 47% Standard Plus Tobacco 0% 47% Standard Tobacco 0% 64% - --------------------------------------------------------------
State premium tax will not be reimbursed For Life insurance on a risk classified as multiple table substandard, the appropriate rates will be increased by 25% per table. Male Non Smoker 91 Bragg, Male Non Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 0 1.1200 0.7000 0.4700 0.4200 0.3700 0.3200 0.3100 0.2800 0.2700 0.2700 0.2800 1 0.9856 0.6002 0.3849 0.3369 0.2876 0.3116 0.3137 0.2183 0.2231 0.2571 0.2962 2 0.8054 0.5067 0.3324 0.2908 0.2452 0.3032 0.3174 0.2120 0.2406 0.3264 0.4091 3 0.6119 0.4238 0.3032 0.2714 0.2338 0.2948 0.3211 0.2464 0.3004 0.4411 0.5696 4 0.4378 0.3555 0.2882 0.2683 0.2444 0.2864 0.3248 0.3068 0.3804 0.5641 0.7288 5 0.3154 0.3061 0.2791 0.2744 0.2679 0.2782 0.3283 0.3784 0.4586 0.6585 0.8377 6 0.2486 0.3076 0.2739 0.2804 0.3138 0.3563 0.4419 0.4819 0.5504 0.7296 0.8937 7 0.2157 0.3091 0.2760 0.3031 0.3882 0.4745 0.6092 0.6271 0.6704 0.8020 0.9294 8 0.2223 0.3106 0.2821 0.3383 0.4768 0.6075 0.7918 0.7830 0.7956 0.8678 0.9487 9 0.2289 0.3120 0.3118 0.3852 0.5654 0.7302 0.9512 0.9186 0.9030 0.9191 0.9513 10 0.2638 0.3134 0.3635 0.4430 0.6395 0.8175 1.0490 1.0028 0.9693 0.9481 0.9538 11 0.3310 0.4130 0.4550 0.5246 0.7028 0.8651 1.0440 1.0006 0.9647 0.9454 0.9352 12 0.4344 0.5605 0.5832 0.6306 0.7648 0.8898 1.0390 0.9984 0.9600 0.9163 0.8972 13 0.5508 0.7218 0.7213 0.7415 0.8201 0.8929 0.9800 0.9502 0.9169 0.8747 0.8521 14 0.6570 0.8630 0.8425 0.8378 0.8636 0.8940 0.9160 0.8975 0.8712 0.8346 0.8123 15 0.7300 0.9500 0.9200 0.9000 0.8900 0.8900 0.8700 0.8600 0.8400 0.8100 0.7900 16 0.7340 0.9517 0.9296 0.9086 0.8847 0.8750 0.8403 0.8351 0.8216 0.8131 0.7956 17 0.7380 0.9534 0.9392 0.9171 0.8794 0.8466 0.8115 0.8096 0.8045 0.8162 0.8012 18 0.7420 0.9078 0.9100 0.8941 0.8537 0.8128 0.7863 0.7875 0.7946 0.8193 0.8208 19 0.7460 0.8515 0.8699 0.8620 0.8246 0.7813 0.7673 0.7782 0.7893 0.8225 0.8423 20 0.7500 0.8000 0.8300 0.8300 0.8000 0.7600 0.7636 0.7768 0.7937 0.8305 0.8600 21 0.7189 0.7470 0.7832 0.7911 0.7772 0.7588 0.7652 0.7809 0.8027 0.8385 0.8714 22 0.6719 0.6822 0.7220 0.7394 0.7510 0.7576 0.7731 0.8064 0.8295 0.8546 0.8810 23 0.6185 0.6149 0.6572 0.6850 0.7254 0.7564 0.7918 0.8379 0.8618 0.8738 0.8905 24 0.5680 0.5544 0.5996 0.6385 0.7044 0.7552 0.8107 0.8682 0.8938 0.8957 0.9058 25 0.5300 0.5100 0.5600 0.6100 0.7019 0.7572 0.8201 0.8900 0.9200 0.9200 0.9300 26 0.5049 0.5016 0.5600 0.6093 0.6994 0.7592 0.8294 0.8960 0.9293 0.9419 0.9597 27 0.4865 0.4932 0.5600 0.6086 0.7070 0.7644 0.8345 0.9020 0.9391 0.9615 0.9922 28 0.4766 0.4848 0.5600 0.6246 0.7146 0.7696 0.8396 0.9080 0.9446 0.9862 1.0330 29 0.4689 0.4764 0.5600 0.6465 0.7223 0.7748 0.8448 0.9140 0.9618 1.0233 1.0871 30 0.4671 0.4747 0.5600 0.6700 0.7300 0.7800 0.8500 0.9200 1.0000 1.0800 1.1600 31 0.4710 0.4746 0.5750 0.6922 0.7559 0.8151 0.8887 0.9685 1.0594 1.1570 1.2524 32 0.4782 0.4813 0.5939 0.7157 0.7863 0.8598 0.9382 1.0314 1.1333 1.2495 1.3608 33 0.4928 0.4955 0.6193 0.7451 0.8247 0.9149 0.9993 1.1082 1.2215 1.3565 1.4840 34 0.5078 0.5176 0.6538 0.7850 0.8748 0.9814 1.0730 1.1979 1.3238 1.4770 1.6208 35 0.5200 0.5500 0.7000 0.8400 0.9400 1.0600 1.1600 1.3000 1.4400 1.6100 1.7700 36 0.5280 0.5964 0.7628 0.9158 1.0254 1.1543 1.2634 1.4152 1.5687 1.7500 1.9222 37 0.5360 0.6553 0.8404 1.0093 1.1285 1.2638 1.3827 1.5440 1.7102 1.8976 2.0781 38 0.5440 0.7210 0.9256 1.1119 1.2419 1.3830 1.5133 1.6852 1.8662 2.0612 2.2519 39 0.5520 0.7878 1.0112 1.2150 1.3582 1.5069 1.6506 1.8376 2.0389 2.2492 2.4578 40 0.5600 0.8500 1.0900 1.3100 1.4700 1.6300 1.7900 2.0000 2.2300 2.4700 2.7100 41 0.5932 0.9010 1.1534 1.3862 1.5668 1.7407 1.9196 2.1622 2.4319 2.7199 3.0086 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 0 0.3300 0.3800 0.4600 0.6600 0.8391 15 1 0.3808 0.4178 0.4844 0.6628 1.0713 16 2 0.5423 0.5554 0.5950 0.7240 1.0196 17 3 0.7525 0.7379 0.7456 0.8136 0.9817 18 4 0.9491 0.9107 0.8898 0.9012 0.9569 19 5 1.0702 1.0190 0.9814 0.9568 0.9600 20 6 1.0794 1.0529 0.9769 0.9563 0.9600 21 7 1.0885 1.0490 0.9724 0.9558 0.9600 22 8 1.0464 1.0220 0.9679 0.9553 0.9600 23 9 0.9958 0.9867 0.9635 0.9549 0.9600 24 10 0.9561 0.9578 0.9590 0.9474 0.9600 25 11 0.9222 0.9298 0.9392 0.9400 0.9600 26 12 0.8811 0.8927 0.9111 0.9301 0.9600 27 13 0.8406 0.8551 0.8819 0.9202 0.9600 28 14 0.8081 0.8253 0.8588 0.9125 0.9600 29 15 0.8014 0.8222 0.8570 0.9101 0.9600 30 16 0.7947 0.8191 0.8551 0.9125 0.9600 31 17 0.8136 0.8422 0.8727 0.9203 0.9600 32 18 0.8406 0.8734 0.8973 0.9356 0.9700 33 19 0.8685 0.9052 0.9246 0.9556 0.9800 34 20 0.8900 0.9300 0.9500 0.9800 1.0000 35 21 0.8974 0.9383 0.9694 1.0062 1.0300 36 22 0.9052 0.9471 0.9855 1.0343 1.0700 37 23 0.9137 0.9520 1.0050 1.0683 1.1300 38 24 0.9226 0.9669 1.0343 1.1122 1.2000 39 25 0.9500 1.0000 1.0800 1.1700 1.2800 40 26 0.9902 1.0502 1.1396 1.2368 1.3700 41 27 1.0387 1.1119 1.2088 1.3100 1.4600 42 28 1.0981 1.1865 1.2912 1.3968 1.5500 43 29 1.1710 1.2754 1.3904 1.5044 1.6500 44 30 1.2600 1.3800 1.5100 1.6400 1.7800 45 31 1.3644 1.4978 1.6476 1.8028 1.9400 46 32 1.4824 1.6279 1.8008 1.9880 2.1600 47 33 1.6152 1.7741 1.9732 2.1968 2.4200 48 34 1.7640 1.9402 2.1684 2.4304 2.7300 49 35 1.9300 2.1300 2.3900 2.6900 3.0600 50 36 2.1004 2.3302 2.6214 2.9524 3.4200 51 37 2.2744 2.5381 2.8601 3.2168 3.7800 52 38 2.4712 2.7739 3.1311 3.5180 4.1100 53 39 2.7100 3.0578 3.4594 3.8908 4.4500 54 40 3.0100 3.4100 3.8700 4.3700 4.8800 55 41 3.3806 3.8389 4.3737 4.9746 5.4400 56
Male Non Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 42 0.6348 0.9447 1.2061 1.4495 1.6536 1.8426 2.0424 2.3249 2.6434 2.9934 3.3441 43 0.6848 0.9909 1.2611 1.5157 1.7460 1.9530 2.1764 2.5035 2.8758 3.2958 3.7163 44 0.7432 1.0494 1.3314 1.6006 1.8596 2.0897 2.3396 2.7134 3.1409 3.6329 4.1250 45 0.8100 1.1300 1.4300 1.7200 2.0100 2.2700 2.5500 2.9700 3.4500 4.0100 4.5700 46 0.8878 1.2370 1.5544 1.8678 2.1919 2.4922 2.8073 3.2710 3.7971 4.4147 5.0325 47 0.9765 1.3637 1.6960 2.0333 2.3950 2.7447 3.0994 3.6061 4.1746 4.8434 5.5126 48 1.0723 1.5039 1.8584 2.2259 2.6270 3.0301 3.4270 3.9787 4.5914 5.3146 6.0386 49 1.1714 1.6514 2.0452 2.4550 2.8961 3.3510 3.7903 4.3922 5.0569 5.8473 6.6383 50 1.2700 1.8000 2.2600 2.7300 3.2100 3.7100 4.1900 4.8500 5.5800 6.4600 7.3400 51 1.3629 1.9438 2.5071 3.0609 3.5746 4.1067 4.6210 5.3456 6.1547 7.1518 8.1466 52 1.4526 2.0871 2.7842 3.4414 3.9845 4.5394 5.0831 5.8768 6.7750 7.9103 9.0395 53 1.5470 2.2385 3.0846 3.8566 4.4311 5.0086 5.5837 6.4532 7.4498 8.7369 10.0141 54 1.6535 2.4066 3.4021 4.2911 4.9058 5.5153 6.1302 7.0844 8.1885 9.6330 11.0658 55 1.7800 2.6000 3.7300 4.7300 5.4000 6.0600 6.7300 7.7800 9.0000 10.6000 12.1900 56 1.9211 2.8220 4.0836 5.1937 5.9266 6.6489 7.3818 8.5274 9.8586 11.5986 13.3284 57 2.0718 3.0668 4.4672 5.6922 6.4913 7.2814 8.0805 9.3201 10.7583 12.6279 14.4840 58 2.2398 3.3296 4.8580 6.1950 7.0747 7.9486 8.8283 10.1771 11.7377 13.7469 15.7444 59 2.4333 3.6056 5.2332 6.6711 7.6574 8.6411 9.6274 11.1174 12.8354 15.0146 17.1972 60 2.6600 3.8900 5.5700 7.0900 8.2200 9.3500 10.4800 12.1600 14.0900 16.4900 18.9300 61 2.9270 4.1676 5.8121 7.3663 8.6720 9.9798 11.2857 13.2126 15.4237 18.1081 20.9182 62 3.2291 4.4416 5.9746 7.5206 9.0264 10.5367 12.0430 14.2627 16.8106 19.8294 23.1033 63 3.5557 4.7348 6.1422 7.6806 9.4188 11.1637 12.9026 15.4485 18.3678 21.7518 25.5223 64 3.8962 5.0700 6.3991 7.9745 9.9848 12.0038 14.0147 16.9082 20.2119 23.9727 28.2122 65 4.2400 5.4700 6.8300 8.5300 10.8600 13.2000 15.5300 18.7800 22.4600 26.5900 31.2100 66 4.5784 5.9113 7.4194 9.3454 12.0727 14.8106 17.5354 21.1384 25.1542 29.5860 34.3969 67 4.9184 6.3786 8.1111 10.3355 13.5326 16.7403 19.9307 23.8912 28.2167 32.8956 37.7482 68 5.2732 6.9074 8.9281 11.5029 15.1970 18.9017 22.5853 26.9268 31.5841 36.5452 41.4422 69 5.6560 7.5327 9.8934 12.8502 17.0237 21.2074 25.3686 30.1336 35.1930 40.5612 45.6567 70 6.0800 8.2900 11.0300 14.3800 18.9700 23.5700 28.1500 33.4000 38.9800 44.9700 50.5700 71 6.5397 9.1635 12.3052 16.0451 20.9776 25.9165 30.8400 36.6249 42.8342 49.6475 56.0513 72 7.0262 10.1298 13.7037 17.8436 23.0747 28.3051 33.5257 39.8827 46.7977 54.5761 61.9818 73 7.5480 11.2123 15.2745 19.8466 25.3490 30.8455 36.3413 43.3251 51.0371 59.9419 68.5576 74 8.1131 12.4346 17.0669 22.1251 27.8882 33.6472 39.4213 47.1036 55.7190 65.9312 75.9750 75 8.7300 13.8200 19.1300 24.7500 30.7800 36.8200 42.9000 51.3700 61.0100 72.7300 84.4300 76 9.4910 15.6638 21.9397 28.3196 34.6125 40.9597 47.3957 56.8977 67.9061 81.7093 95.7363 77 10.2520 17.5076 24.7493 31.8893 38.4450 45.0994 51.8915 62.4253 74.8022 90.6885 107.0426 78 11.0130 19.3513 27.5590 35.4589 42.2775 49.2391 56.3872 67.9530 81.6983 99.6678 118.3489 79 11.7740 21.1951 30.3687 39.0286 46.1100 53.3788 60.8829 73.4806 88.5944 108.6470 129.6552 80 12.5350 23.0389 33.1783 42.5982 49.9425 57.5186 65.3787 79.0083 95.4905 117.6263 140.9615 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 42 3.8091 4.3310 4.9538 5.6815 6.2100 57 43 4.2813 4.8738 5.5942 6.4621 7.1800 58 44 4.7830 5.4543 6.2783 7.2878 8.3000 59 45 5.3000 6.0600 6.9900 8.1300 9.4800 60 46 5.7999 6.6636 7.7070 8.9690 10.6300 61 47 6.2922 7.2736 8.4401 9.8237 11.7000 62 48 6.8254 7.9308 9.2227 10.7239 12.6800 63 49 7.4485 8.6760 10.0882 11.6994 13.6300 64 50 8.2100 9.5500 11.0700 12.7800 14.6400 65 51 9.1193 10.5469 12.1411 13.9138 15.8000 66 52 10.1438 11.6394 13.2794 15.0809 17.1000 67 53 11.2698 12.8366 14.5250 16.3591 18.4700 68 54 12.4831 14.1471 15.9185 17.8262 19.9500 69 55 13.7700 15.5800 17.5000 19.5600 21.6700 70 56 15.0491 17.0478 19.1810 21.4735 23.7500 71 57 16.3298 18.5447 20.9345 23.5150 26.2400 72 58 17.7338 20.2017 22.8935 25.8146 29.0300 73 59 19.3833 22.1498 25.1910 28.5029 32.1600 74 60 21.4000 24.5200 27.9600 31.7100 35.7300 75 61 23.8016 27.3169 31.1772 35.3722 39.8500 76 62 26.5068 30.4530 34.7540 39.4025 44.5600 77 63 29.4892 33.9218 38.7252 43.8967 49.7500 78 64 32.7224 37.7163 43.1256 48.9506 55.4700 79 65 36.1800 41.8300 47.9900 54.6600 61.8200 80 66 39.6714 46.0598 53.1208 60.8483 68.9400 81 67 43.2143 50.4101 58.4948 67.4518 76.9000 82 68 47.0945 55.1855 64.4084 74.7350 85.6600 83 69 51.5978 60.6906 71.1580 82.9629 95.1800 84 70 57.0100 67.2300 79.0400 92.4000 106.2900 85 71 63.1963 74.6285 87.8288 103.0635 119.5200 86 72 69.9660 82.6832 97.3269 114.7770 134.1000 87 73 77.5216 91.6567 107.8725 127.5147 149.5100 88 74 86.0655 101.8114 119.8041 141.2509 165.2000 89 75 95.8000 113.4100 133.4600 155.9600 180.9500 90 76 108.8366 128.9902 151.8378 173.6219 197.0000 91 77 121.8732 144.5703 170.2155 191.2838 213.4500 92 78 134.9098 160.1505 188.5933 208.9456 230.1200 93 79 147.9464 175.7307 206.9711 226.6075 246.8300 94 80 160.9830 191.3108 225.3488 244.2694 263.1900 95 279.2900 96 295.8000 97 312.7300 98 330.0600 99 364.0500 100 427.5800 101 517.9300 102 651.1400 103 817.2900 104
Male Non Smoker
Attained Ultimate Age 1,000.0000 105 1,000.0000 106 1,000.0000 107 1,000.0000 108 1,000.0000 109 1,000.0000 110 1,000.0000 111 1,000.0000 112 1,000.0000 113 1,000.0000 114 1,000.0000 115 1,000.0000 116 1,000.0000 117 1,000.0000 118 1,000.0000 119
Male Smoker 91 Bragg, Male Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 0 1.5867 0.9917 0.6658 0.5950 0.5242 0.4533 0.4392 0.3967 0.3825 0.3825 0.3967 1 1.4315 0.8855 0.5803 0.5128 0.4427 0.3765 0.4444 0.3445 0.3514 0.3994 0.4549 2 1.1806 0.7575 0.5099 0.4524 0.3870 0.3318 0.4496 0.3400 0.3806 0.5021 0.6192 3 0.8933 0.6268 0.4549 0.4122 0.3577 0.3197 0.4548 0.3755 0.4520 0.6513 0.8334 4 0.6290 0.5125 0.4156 0.3906 0.3550 0.3403 0.4600 0.4435 0.5477 0.8079 1.0413 5 0.4468 0.4336 0.3924 0.3923 0.3795 0.3941 0.4651 0.5361 0.6497 0.9329 1.1867 6 0.3499 0.4357 0.3757 0.3939 0.4397 0.5006 0.6214 0.6782 0.7752 1.0291 1.2620 7 0.2986 0.4378 0.3756 0.4155 0.5352 0.6595 0.8492 0.8749 0.9363 1.1226 1.3045 8 0.3068 0.4399 0.3755 0.4574 0.6533 0.8415 1.1010 1.0890 1.1070 1.2090 1.3258 9 0.3150 0.4419 0.4206 0.5259 0.7811 1.0175 1.3291 1.2833 1.2613 1.2840 1.3376 10 0.3737 0.4440 0.5150 0.6276 0.9060 1.1581 1.4861 1.4206 1.3732 1.3431 1.3512 11 0.4937 0.6360 0.6950 0.7922 1.0446 1.2677 1.4914 1.4949 1.4393 1.3860 1.3577 12 0.6779 0.9200 0.9512 1.0155 1.2055 1.3657 1.4968 1.5310 1.4770 1.4154 1.3641 13 0.8827 1.2316 1.2289 1.2527 1.3636 1.4457 1.5036 1.5278 1.4822 1.4322 1.3682 14 1.0646 1.5064 1.4734 1.4591 1.4935 1.5013 1.5118 1.5245 1.4873 1.4311 1.3699 15 1.1800 1.6800 1.6300 1.5900 1.5700 1.5042 1.5200 1.5000 1.4700 1.4300 1.3651 16 1.1875 1.7321 1.6818 1.5990 1.5785 1.5071 1.4723 1.4525 1.4272 1.4032 1.3578 17 1.1949 1.7055 1.6651 1.6079 1.5358 1.4486 1.3999 1.3760 1.3557 1.3559 1.3352 18 1.1462 1.6308 1.6055 1.5484 1.4639 1.3699 1.3174 1.2883 1.2735 1.3010 1.3103 19 1.0903 1.5388 1.5286 1.4745 1.3846 1.2906 1.2393 1.2070 1.1989 1.2514 1.2898 20 1.0500 1.4600 1.4600 1.4100 1.3200 1.2300 1.1800 1.1500 1.1500 1.2200 1.2808 21 1.0253 1.3870 1.3908 1.3463 1.2639 1.1845 1.1359 1.1420 1.1540 1.2260 1.2702 22 1.0011 1.2995 1.3040 1.2678 1.2018 1.1413 1.0974 1.1340 1.1580 1.2320 1.2660 23 0.9772 1.2084 1.2128 1.1870 1.1426 1.1056 1.0698 1.1260 1.1620 1.2380 1.2602 24 0.9536 1.1249 1.1304 1.1169 1.0957 1.0827 1.0699 1.1180 1.1660 1.2440 1.2854 25 0.9300 1.0600 1.0700 1.0700 1.0700 1.0853 1.0700 1.1100 1.1700 1.2500 1.3500 26 0.9038 1.0150 1.0310 1.0760 1.0696 1.0878 1.1019 1.1630 1.2410 1.3429 1.4617 27 0.8750 0.9824 1.0045 1.0820 1.0692 1.1088 1.1510 1.2363 1.3349 1.4682 1.6110 28 0.8477 0.9604 0.9988 1.0880 1.0916 1.1461 1.2190 1.3301 1.4503 1.6182 1.7866 29 0.8259 0.9509 1.0008 1.0940 1.1340 1.2048 1.3081 1.4446 1.5858 1.7847 1.9767 30 0.8172 0.9427 1.0100 1.1000 1.2000 1.2900 1.4200 1.5800 1.7400 1.9600 2.1700 31 0.8106 0.9399 1.0392 1.1620 1.2906 1.4048 1.5578 1.7391 1.9131 2.1382 2.3563 32 0.8115 0.9436 1.0800 1.2416 1.4033 1.5457 1.7203 1.9218 2.1062 2.3247 2.5434 33 0.8145 0.9492 1.1372 1.3412 1.5367 1.7082 1.9029 2.1238 2.3186 2.5281 2.7462 34 0.8340 0.9775 1.2156 1.4632 1.6894 1.8878 2.1010 2.3413 2.5501 2.7570 2.9801 35 0.8700 1.0300 1.3200 1.6100 1.8600 2.0800 2.3100 2.5700 2.8000 3.0200 3.2600 36 0.9213 1.1094 1.4549 1.7858 2.0479 2.2806 2.5222 2.7982 3.0553 3.3047 3.5705 37 0.9851 1.2113 1.6170 1.9889 2.2542 2.4927 2.7405 3.0285 3.3162 3.6054 3.9014 38 1.0633 1.3314 1.7998 2.2131 2.4794 2.7225 2.9767 3.2787 3.6026 3.9406 4.2762 39 1.1576 1.4657 1.9963 2.4522 2.7245 2.9762 3.2426 3.5666 3.9339 4.3293 4.7179 40 1.2700 1.6100 2.2000 2.7000 2.9900 3.2600 3.5500 3.9100 4.3300 4.7900 5.2500 41 1.4071 1.7591 2.4023 2.9457 3.2667 3.5647 3.8921 4.3090 4.7988 5.3415 5.9105 42 1.5678 1.9158 2.6078 3.1934 3.5542 3.8862 4.2610 4.7517 5.3272 5.9714 6.6838 43 1.7418 2.0878 2.8290 3.4594 3.8662 4.2382 4.6670 5.2379 5.9032 6.6514 7.5130 44 1.9193 2.2833 3.0789 3.7595 4.2169 4.6349 5.1199 5.7674 6.5148 7.3537 8.3407 45 2.0900 2.5100 3.3700 4.1100 4.6200 5.0900 5.6300 6.3400 7.1500 8.0500 9.1100 46 2.2362 2.7568 3.6920 4.5038 5.0766 5.6143 6.2108 6.9638 7.8040 8.7122 9.7616 47 2.3647 3.0184 4.0364 4.9301 5.5773 6.1986 6.8556 7.6389 8.4848 9.3591 10.3336 48 2.5021 3.3116 4.4188 5.3995 6.1207 6.8266 7.5440 8.3531 9.1996 10.0329 10.9148 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 0 0.4675 0.5383 0.6517 0.9350 1.1887 15 1 0.5748 0.6271 0.7215 0.9741 1.5177 16 2 0.8080 0.8264 0.8827 1.0650 1.4444 17 3 1.0924 1.0718 1.0827 1.1785 1.3907 18 4 1.3534 1.2990 1.2694 1.2851 1.3556 19 5 1.5161 1.4436 1.3903 1.3555 1.3600 20 6 1.5237 1.4886 1.3838 1.3563 1.3600 21 7 1.5312 1.4768 1.3773 1.3571 1.3600 22 8 1.4661 1.4339 1.3708 1.3579 1.3600 23 9 1.3963 1.3854 1.3642 1.3587 1.3600 24 10 1.3545 1.3569 1.3572 1.3594 1.3600 25 11 1.3514 1.3520 1.3521 1.3593 1.3600 26 12 1.3484 1.3472 1.3465 1.3590 1.3600 27 13 1.3468 1.3444 1.3430 1.3580 1.3600 28 14 1.3468 1.3437 1.3416 1.3562 1.3600 29 15 1.3449 1.3450 1.3407 1.3576 1.3600 30 16 1.3445 1.3483 1.3412 1.3570 1.3600 31 17 1.3423 1.3537 1.3449 1.3631 1.3700 32 18 1.3401 1.3591 1.3479 1.3679 1.4000 33 19 1.3379 1.3646 1.3650 1.3917 1.4400 34 20 1.3402 1.3700 1.4000 1.4400 1.5000 35 21 1.3408 1.3959 1.4486 1.5126 1.5900 36 22 1.3514 1.4236 1.5067 1.6035 1.7000 37 23 1.3604 1.4644 1.5805 1.7132 1.8500 38 24 1.4003 1.5295 1.6762 1.8419 2.0300 39 25 1.4800 1.6300 1.8000 1.9900 2.2200 40 26 1.6073 1.7714 1.9531 2.1531 2.4200 41 27 1.7726 1.9463 2.1314 2.3310 2.6300 42 28 1.9643 2.1465 2.3330 2.5302 2.8200 43 29 2.1706 2.3638 2.5565 2.7577 3.0200 44 30 2.3800 2.5900 2.8000 3.0200 3.2600 45 31 2.5791 2.8098 3.0478 3.3022 3.5500 46 32 2.7758 3.0287 3.3009 3.5997 3.9100 47 33 2.9898 3.2697 3.5831 3.9351 4.3300 48 34 3.2413 3.5558 3.9182 4.3310 4.8100 49 35 3.5500 3.9100 4.3300 4.8100 5.3400 50 36 3.9018 4.3218 4.8131 5.3739 5.9600 51 37 4.2833 4.7759 5.3518 6.0078 6.6600 52 38 4.7159 5.2881 5.9538 6.7086 7.4600 53 39 5.2210 5.8742 6.6273 7.4737 8.3300 54 40 5.8200 6.5500 7.3800 8.3000 9.2700 55 41 6.5598 7.3530 8.2298 9.1746 10.2700 56 42 7.4263 8.2727 9.1713 10.0995 11.3000 57 43 8.3489 9.2529 10.1779 11.0941 12.3100 58 44 9.2570 10.2374 11.2230 12.1778 13.3700 59 45 10.0800 11.1700 12.2800 13.3700 14.5600 60 46 10.7270 11.9618 13.2694 14.6124 15.9900 61 47 11.2449 12.6503 14.2091 15.8920 17.6900 62 48 11.7703 13.3689 15.2181 17.2964 19.6200 63
Male Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 49 2.6750 3.6532 4.8548 5.9226 6.7054 7.4825 8.2556 9.0942 9.9556 10.7758 11.5940 50 2.9100 4.0600 5.3600 6.5100 7.3300 8.1500 8.9700 9.8500 10.7600 11.6300 12.4600 51 3.2064 4.5467 5.9557 7.1814 7.9952 8.8103 9.6608 10.5777 11.5594 12.5375 13.4350 52 3.5464 5.1022 6.6314 7.9299 8.7020 9.4742 10.3416 11.2854 12.3489 13.4702 14.4599 53 3.9312 5.7042 7.3554 8.7257 9.4492 10.1698 11.0520 12.0374 13.2087 14.5150 15.6513 54 4.3620 6.3309 8.0955 9.5390 10.2356 10.9257 11.8316 12.8975 14.2190 15.7593 17.1258 55 4.8400 6.9600 8.8200 10.3400 11.0600 11.7700 12.7200 13.9300 15.4600 17.2900 19.0000 56 5.3849 7.5847 9.5192 11.1210 11.9285 12.7230 13.7318 15.1689 16.9826 19.1597 21.3745 57 5.9958 8.2198 10.2144 11.9017 12.8418 13.7657 14.8405 16.5714 18.7335 21.3102 24.1714 58 6.6434 8.8754 10.9200 12.6939 13.7910 14.8679 16.0243 18.0866 20.6361 23.6630 27.2402 59 7.2979 9.5621 11.6504 13.5094 14.7667 15.9994 17.2614 19.6631 22.6138 26.1391 30.4299 60 7.9300 10.2900 12.4200 14.3600 15.7600 17.1300 18.5300 21.2500 24.5900 28.6600 33.5900 61 8.4908 11.0470 13.2189 15.2219 16.7103 18.1084 19.6473 22.6542 26.3891 31.1470 36.6951 62 9.0000 11.8263 14.0374 16.0874 17.6238 18.9548 20.6278 23.9099 28.0622 33.6527 39.8458 63 9.5308 12.6461 14.8906 16.9918 18.5910 19.8960 21.7458 25.3065 29.8726 36.2949 43.0798 64 10.1564 13.5246 15.7931 17.9709 19.7029 21.1588 23.2751 27.1334 32.0841 39.1914 46.4353 65 10.9500 14.4800 16.7600 19.0600 21.0500 22.9700 25.4900 29.6800 34.9600 42.4600 49.9500 66 11.9428 15.4791 17.6877 20.1315 22.5390 25.4058 28.5298 33.0830 38.5876 46.0317 53.4221 67 13.0860 16.5098 18.5662 21.1618 24.1093 28.3149 32.2117 37.1495 42.7912 49.8278 56.8262 68 14.3328 17.6218 19.5510 22.3422 25.9011 31.5831 36.3267 41.6745 47.4400 53.9522 60.4654 69 15.6364 18.8653 20.7971 23.8645 28.0546 35.0962 40.6658 46.4530 52.4032 58.5083 64.6423 70 16.9500 20.2900 22.4600 25.9200 30.7100 38.7400 45.0200 51.2800 57.5500 63.6000 69.6600 71 18.2434 21.8839 24.5345 28.4926 33.8249 42.4160 49.2565 56.0150 62.7491 69.1431 75.4815 72 19.5479 23.6136 26.9170 31.4547 37.3058 46.2005 53.5148 60.7946 68.0876 75.0685 81.9049 73 20.9086 25.4975 29.6153 34.8305 41.2163 50.2409 57.9938 65.8298 73.7626 81.5024 88.9856 74 22.3709 27.5535 32.6371 38.6442 45.6198 54.6849 62.8925 71.3312 79.9711 88.5708 96.7789 75 23.9800 29.8000 35.9900 42.9200 50.5800 59.6800 68.4100 77.5100 86.9100 96.4000 105.3400 76 25.9691 32.5935 40.3261 48.5499 57.1253 66.1317 75.5184 85.4394 95.7777 106.3431 116.1311 77 27.9583 35.3869 44.6622 54.1799 63.6705 72.5835 82.6269 93.3687 104.6454 116.2863 126.9221 78 29.9474 38.1804 48.9983 59.8098 70.2158 79.0352 89.7353 101.2981 113.5131 126.2294 137.7132 79 31.9365 40.9739 53.3344 65.4398 76.7610 85.4869 96.8438 109.2274 122.3808 136.1726 148.5043 80 33.9257 43.7674 57.6705 71.0697 83.3063 91.9386 103.9522 117.1568 131.2484 146.1157 159.2954 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 49 12.4398 14.2510 16.4154 18.9132 21.7500 64 50 13.3900 15.4300 17.9200 20.8300 24.1300 65 51 14.5525 16.8398 19.6850 23.0257 26.7700 66 52 15.8362 18.3913 21.6309 25.4418 29.7000 67 53 17.3438 20.1839 23.8283 28.1102 32.9200 68 54 19.1775 22.3170 26.3478 31.0623 36.4000 69 55 21.4400 24.8900 29.2600 34.3300 40.1100 70 56 24.2485 28.0174 32.6566 37.9710 44.0200 71 57 27.5346 31.6329 36.4907 41.9641 48.1100 72 58 31.1226 35.5647 40.6245 46.2227 52.3900 73 59 34.8363 39.6410 44.9202 50.6602 56.8700 74 60 38.5000 43.6900 49.2400 55.1900 61.5500 75 61 42.1442 47.7458 53.5987 59.7886 66.4400 76 62 45.8861 51.9231 58.0882 64.5139 71.5100 77 63 49.6799 56.1705 62.6862 69.4009 76.7300 78 64 53.4798 60.4366 67.3709 74.4846 82.1300 79 65 57.2400 64.6700 72.1200 79.8000 87.8200 80 66 60.6071 68.4839 76.5272 84.9418 93.9200 81 67 63.6118 71.9126 80.6072 89.8865 100.4100 82 68 66.7838 75.5362 84.9696 95.2423 107.1800 83 69 70.6533 79.9353 90.2240 101.6174 114.2900 84 70 75.7500 85.6900 96.9800 109.6200 123.5800 85 71 82.0795 92.8058 105.2254 119.4822 136.0000 86 72 89.2886 100.8957 114.5539 130.7987 150.0000 87 73 97.3689 109.9518 124.9837 143.2211 164.7400 88 74 106.3121 119.9659 136.5330 156.4010 179.3700 89 75 116.1100 130.9300 149.2200 169.9900 193.3400 90 76 128.4828 144.7549 165.2960 185.2710 206.7500 91 77 140.8556 158.5798 181.3720 200.5520 220.0800 92 78 153.2284 172.4047 197.4480 215.8330 233.7000 93 79 165.6012 186.2296 213.5240 231.1140 247.9500 94 80 177.9740 200.0544 229.6000 246.3950 263.1900 95 279.2900 96 295.8000 97 312.7300 98 330.0600 99 364.0500 100 427.5800 101 517.9300 102 651.1400 103 817.2900 104 1,000.0000 105 1,000.0000 106 1,000.0000 107 1,000.0000 108 1,000.0000 109 1,000.0000 110 1,000.0000 111 1,000.0000 112 1,000.0000 113 1,000.0000 114 1,000.0000 115 1,000.0000 116 1,000.0000 117 1,000.0000 118
Male Smoker
Attained Ultimate Age 1,000.0000 119
Blended Non Smoker 91 Bragg, Blended Non Smoker Assumes 80% Male, 20% Female
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 0 1.0640 0.6260 0.4360 0.3900 0.3440 0.3000 0.2880 0.2600 0.2540 0.2540 0.2660 1 0.9314 0.5295 0.3509 0.3072 0.2622 0.2928 0.2921 0.1981 0.2048 0.2336 0.2699 2 0.7587 0.4472 0.3013 0.2644 0.2234 0.2857 0.2962 0.1941 0.2209 0.2938 0.3661 3 0.5754 0.3792 0.2765 0.2493 0.2162 0.2785 0.3004 0.2305 0.2787 0.3982 0.5082 4 0.4113 0.3253 0.2657 0.2501 0.2296 0.2714 0.3045 0.2899 0.3545 0.5106 0.6503 5 0.2959 0.2859 0.2589 0.2568 0.2521 0.2644 0.3085 0.3546 0.4248 0.5947 0.7461 6 0.2421 0.2873 0.2562 0.2634 0.2925 0.3318 0.4038 0.4416 0.5019 0.6528 0.7907 7 0.2153 0.2893 0.2593 0.2853 0.3582 0.4338 0.5436 0.5627 0.6016 0.7119 0.8190 8 0.2202 0.2913 0.2680 0.3182 0.4364 0.5484 0.6962 0.6923 0.7053 0.7658 0.8343 9 0.2251 0.2933 0.2961 0.3607 0.5141 0.6540 0.8295 0.8050 0.7941 0.8081 0.8361 10 0.2537 0.2952 0.3413 0.4110 0.5782 0.7287 0.9095 0.8733 0.8483 0.8319 0.8376 11 0.3080 0.3790 0.4185 0.4797 0.6300 0.7662 0.9074 0.8729 0.8454 0.8303 0.8223 12 0.3933 0.5028 0.5257 0.5679 0.6808 0.7853 0.9031 0.8705 0.8416 0.8066 0.7911 13 0.4894 0.6380 0.6408 0.6597 0.7260 0.7872 0.8558 0.8317 0.8068 0.7729 0.7544 14 0.5773 0.7565 0.7416 0.7393 0.7616 0.7877 0.8047 0.7897 0.7695 0.7401 0.7221 15 0.6375 0.8279 0.8046 0.7898 0.7830 0.7840 0.7676 0.7594 0.7442 0.7201 0.7039 16 0.6425 0.8309 0.8133 0.7974 0.7788 0.7715 0.7438 0.7396 0.7289 0.7221 0.7081 17 0.6470 0.8321 0.8204 0.8039 0.7742 0.7483 0.7203 0.7190 0.7151 0.7244 0.7125 18 0.6515 0.7953 0.7965 0.7852 0.7533 0.7208 0.6998 0.7010 0.7070 0.7267 0.7282 19 0.6560 0.7501 0.7638 0.7591 0.7297 0.6951 0.6842 0.6933 0.7026 0.7290 0.7453 20 0.6589 0.7074 0.7307 0.7326 0.7093 0.6775 0.6811 0.6922 0.7067 0.7360 0.7606 21 0.6337 0.6636 0.6921 0.7006 0.6904 0.6759 0.6822 0.6954 0.7146 0.7430 0.7709 22 0.5942 0.6079 0.6408 0.6578 0.6685 0.6741 0.6885 0.7162 0.7374 0.7577 0.7815 23 0.5496 0.5499 0.5865 0.6128 0.6471 0.6724 0.7034 0.7417 0.7646 0.7749 0.7930 24 0.5073 0.4977 0.5385 0.5741 0.6294 0.6706 0.7186 0.7662 0.7916 0.7957 0.8103 25 0.4758 0.4607 0.5059 0.5512 0.6272 0.6729 0.7278 0.7840 0.8140 0.8200 0.8360 26 0.4547 0.4525 0.5052 0.5505 0.6252 0.6751 0.7369 0.7930 0.8264 0.8437 0.8672 27 0.4398 0.4455 0.5054 0.5512 0.6324 0.6822 0.7455 0.8033 0.8404 0.8667 0.9016 28 0.4317 0.4384 0.5056 0.5652 0.6397 0.6903 0.7553 0.8149 0.8523 0.8950 0.9440 29 0.4253 0.4314 0.5058 0.5840 0.6489 0.6995 0.7661 0.8278 0.8749 0.9348 0.9985 30 0.4244 0.4307 0.5060 0.6040 0.6600 0.7100 0.7780 0.8420 0.9160 0.9920 1.0700 31 0.4280 0.4314 0.5223 0.6281 0.6880 0.7455 0.8173 0.8912 0.9756 1.0672 1.1591 32 0.4350 0.4386 0.5434 0.6552 0.7215 0.7898 0.8659 0.9529 1.0482 1.1564 1.2627 33 0.4478 0.4526 0.5707 0.6884 0.7627 0.8436 0.9250 1.0272 1.1338 1.2588 1.3798 34 0.4610 0.4738 0.6058 0.7303 0.8142 0.9081 0.9960 1.1135 1.2324 1.3736 1.5093 35 0.4720 0.5040 0.6500 0.7840 0.8780 0.9840 1.0800 1.2120 1.3440 1.5000 1.6500 36 0.4842 0.5465 0.7075 0.8542 0.9587 1.0749 1.1800 1.3233 1.4671 1.6326 1.7929 37 0.4984 0.6000 0.7773 0.9389 1.0547 1.1802 1.2953 1.4475 1.6017 1.7719 1.9386 38 0.5135 0.6597 0.8533 1.0310 1.1594 1.2945 1.4213 1.5835 1.7500 1.9261 2.1008 39 0.5284 0.7206 0.9295 1.1231 1.2660 1.4129 1.5537 1.7301 1.9141 2.1034 2.2934 40 0.5420 0.7780 1.0000 1.2080 1.3680 1.5300 1.6880 1.8860 2.0960 2.3120 2.5300 41 0.5740 0.8255 1.0592 1.2775 1.4544 1.6343 1.8128 2.0417 2.2890 2.5493 2.8122 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 0 0.3100 0.3560 0.4260 0.5960 0.7473 15 1 0.3412 0.3763 0.4350 0.5997 0.9330 16 2 0.4754 0.4900 0.5259 0.6501 0.8917 17 3 0.6562 0.6471 0.6558 0.7232 0.8614 18 4 0.8272 0.7975 0.7818 0.7947 0.8415 19 5 0.9321 0.8912 0.8611 0.8400 0.8440 20 6 0.9395 0.9183 0.8575 0.8404 0.8440 21 7 0.9467 0.9152 0.8539 0.8402 0.8440 22 8 0.9131 0.8936 0.8503 0.8399 0.8440 23 9 0.8726 0.8653 0.8468 0.8398 0.8440 24 10 0.8408 0.8422 0.8432 0.8338 0.8440 25 11 0.8134 0.8196 0.8274 0.8280 0.8440 26 12 0.7803 0.7896 0.8047 0.8201 0.8440 27 13 0.7473 0.7590 0.7811 0.8122 0.8440 28 14 0.7204 0.7343 0.7624 0.8060 0.8440 29 15 0.7150 0.7319 0.7613 0.8041 0.8440 30 16 0.7093 0.7291 0.7601 0.8076 0.8440 31 17 0.7248 0.7481 0.7752 0.8154 0.8440 32 18 0.7469 0.7736 0.7959 0.8293 0.8560 33 19 0.7696 0.7996 0.8187 0.8469 0.8680 34 20 0.7884 0.8200 0.8400 0.8680 0.8900 35 21 0.7958 0.8303 0.8604 0.8948 0.9220 36 22 0.8053 0.8419 0.8795 0.9245 0.9620 37 23 0.8163 0.8516 0.9026 0.9604 1.0200 38 24 0.8289 0.8707 0.9350 1.0058 1.0880 39 25 0.8580 0.9060 0.9820 1.0640 1.1640 40 26 0.8988 0.9566 1.0413 1.1308 1.2520 41 27 0.9474 1.0179 1.1096 1.2039 1.3400 42 28 1.0063 1.0910 1.1899 1.2897 1.4320 43 29 1.0777 1.1773 1.2856 1.3944 1.5320 44 30 1.1640 1.2780 1.4000 1.5240 1.6580 45 31 1.2649 1.3911 1.5310 1.6778 1.8120 46 32 1.3787 1.5156 1.6764 1.8516 2.0160 47 33 1.5060 1.6549 1.8393 2.0467 2.2560 48 34 1.6476 1.8120 2.0228 2.2644 2.5400 49 35 1.8040 1.9900 2.2300 2.5060 2.8400 50 36 1.9629 2.1767 2.4462 2.7521 3.1700 51 37 2.1239 2.3697 2.6693 3.0018 3.5020 52 38 2.3055 2.5879 2.9214 3.2843 3.8140 53 39 2.5260 2.8497 3.2243 3.6286 4.1360 54 40 2.8040 3.1740 3.6000 4.0640 4.5360 55 41 3.1491 3.5689 4.0580 4.6052 5.0460 56
Blended Non Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 42 0.6118 0.8665 1.1054 1.3299 1.5296 1.7292 1.9310 2.1979 2.4918 2.8100 3.1309 43 0.6559 0.9104 1.1494 1.3847 1.6100 1.8320 2.0598 2.3691 2.7144 3.0977 3.4836 44 0.7071 0.9664 1.2132 1.4605 1.7120 1.9605 2.2164 2.5696 2.9671 3.4165 3.8681 45 0.7660 1.0440 1.3060 1.5720 1.8520 2.1320 2.4180 2.8140 3.2600 3.7700 4.2820 46 0.8340 1.1471 1.4259 1.7145 2.0266 2.3472 2.6670 3.1032 3.5906 4.1493 4.7100 47 0.9106 1.2694 1.5642 1.8770 2.2251 2.5947 2.9519 3.4276 3.9521 4.5519 5.1536 48 0.9938 1.4050 1.7236 2.0667 2.4522 2.8731 3.2692 3.7856 4.3483 4.9912 5.6359 49 1.0816 1.5485 1.9066 2.2906 2.7129 3.1813 3.6151 4.1756 4.7830 5.4808 6.1797 50 1.1720 1.6940 2.1160 2.5560 3.0120 3.5180 3.9860 4.5960 5.2600 6.0340 6.8080 51 1.2620 1.8388 2.3576 2.8730 3.3557 3.8822 4.3764 5.0385 5.7706 6.6463 7.5186 52 1.3528 1.9868 2.6296 3.2369 3.7406 4.2749 4.7888 5.5043 6.3124 7.3088 8.2963 53 1.4491 2.1420 2.9232 3.6323 4.1576 4.6973 5.2313 6.0056 6.8982 8.0283 9.1442 54 1.5553 2.3084 3.2296 4.0438 4.5978 5.1512 5.7123 6.5548 7.5411 8.8118 10.0657 55 1.6760 2.4900 3.5400 4.4560 5.0520 5.6380 6.2400 7.1640 8.2540 9.6660 11.0640 56 1.8066 2.6876 3.8667 4.8866 5.5301 6.1608 6.8095 7.8189 9.0105 10.5523 12.0843 57 1.9443 2.8984 4.2156 5.3458 6.0380 6.7185 7.4152 8.5111 9.8021 11.4660 13.1244 58 2.0955 3.1215 4.5682 5.8072 6.5610 7.3068 8.0646 9.2624 10.6682 12.4654 14.2666 59 2.2672 3.3557 4.9059 6.2440 7.0846 7.9207 8.7651 10.0948 11.6484 13.6087 15.5931 60 2.4660 3.6000 5.2100 6.6300 7.5940 8.5560 9.5240 11.0300 12.7820 14.9540 17.1860 61 2.6964 3.8404 5.4292 6.8871 8.0075 9.1267 10.2520 11.9835 13.9950 16.4364 19.0085 62 2.9540 4.0776 5.5758 7.0332 8.3348 9.6360 10.9440 12.9410 15.2610 18.0170 21.0058 63 3.2320 4.3325 5.7270 7.1848 8.6986 10.2124 11.7343 14.0289 16.6914 19.7934 23.2332 64 3.5236 4.6263 5.9600 7.4589 9.2215 10.9849 12.7569 15.3737 18.3973 21.8632 25.7461 65 3.8220 4.9800 6.3520 7.9720 10.0260 12.0820 14.1460 17.1020 20.4900 24.3240 28.6000 66 4.1163 5.3699 6.8920 8.7288 11.1427 13.5604 15.9783 19.2839 23.0203 27.1880 31.7456 67 4.4109 5.7820 7.5286 9.6515 12.4900 15.3343 18.1646 21.8351 25.9140 30.3901 35.1459 68 4.7224 6.2518 8.2782 10.7332 14.0219 17.3188 20.5894 24.6503 29.0950 33.9120 38.8750 69 5.0672 6.8146 9.1572 11.9670 15.6925 19.4290 23.1377 27.6243 32.4871 37.7355 43.0063 70 5.4620 7.5060 10.1820 13.3460 17.4560 21.5800 25.6940 30.6520 36.0140 41.8420 47.6140 71 5.9009 8.3109 11.3243 14.8287 19.2596 23.7051 28.1759 33.6381 39.5694 46.1107 52.5634 72 6.3730 9.2060 12.5732 16.4194 21.1339 25.8608 30.6601 36.6528 43.2039 50.5537 57.8054 73 6.8869 10.2133 13.9711 18.1809 23.1579 28.1474 33.2706 39.8388 47.0773 55.3526 63.5415 74 7.4510 11.3552 15.5605 20.1756 25.4109 30.6650 36.1313 43.3389 51.3494 60.6889 69.9738 75 8.0740 12.6540 17.3840 22.4660 27.9720 33.5140 39.3660 47.2960 56.1800 66.7440 77.3040 76 8.8622 14.3938 19.8529 25.5602 31.3516 37.2232 43.5578 52.4334 62.4728 74.7136 87.0586 77 9.6503 16.1335 22.3218 28.6545 34.7313 40.9325 47.7496 57.5707 68.7657 82.6833 96.8132 78 10.4385 17.8733 24.7907 31.7487 38.1109 44.6417 51.9414 62.7081 75.0585 90.6529 106.5678 79 11.2266 19.6131 27.2596 34.8430 41.4906 48.3509 56.1332 67.8455 81.3514 98.6226 116.3225 80 12.0148 21.3529 29.7285 37.9372 44.8702 52.0601 60.3250 72.9828 87.6442 106.5922 126.0771 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 42 3.5491 4.0221 4.5835 5.2329 5.7280 57 43 3.9894 4.5211 5.1626 5.9248 6.5760 58 44 4.4552 5.0532 5.7808 6.6586 7.5480 59 45 4.9320 5.6060 6.4240 7.4120 8.5760 60 46 5.3914 6.1552 7.0717 8.1664 9.5920 61 47 5.8433 6.7090 7.7332 8.9367 10.5520 62 48 6.3300 7.3041 8.4396 9.7507 11.4460 63 49 6.8941 7.9769 9.2215 10.6365 12.3240 64 50 7.5780 8.7640 10.1100 11.6220 13.2660 65 51 8.3853 9.6559 11.0778 12.6590 14.3480 66 52 9.2876 10.6282 12.1045 13.7288 15.5620 67 53 10.2797 11.6952 13.2305 14.9037 16.8420 68 54 11.3562 12.8711 14.4968 16.2560 18.2280 69 55 12.5120 14.1700 15.9440 17.8580 19.8380 70 56 13.6718 15.5104 17.4878 19.6248 21.7820 71 57 14.8392 16.8829 19.1009 21.5083 24.0960 72 58 16.1268 18.4098 20.9099 23.6355 26.6800 73 59 17.6475 20.2134 23.0414 26.1338 29.5740 74 60 19.5140 22.4160 25.6220 29.1300 32.8880 75 61 21.7218 25.0016 28.6123 32.5520 36.7420 76 62 24.1957 27.8883 31.9280 36.3148 41.1740 77 63 26.9426 31.1009 35.6279 40.5271 46.0780 78 64 29.9691 34.6632 39.7710 45.2973 51.4940 79 65 33.2820 38.6000 44.4160 50.7340 57.5300 80 66 36.7717 42.7824 49.4236 56.6934 64.3260 81 67 40.4336 47.1943 54.7547 63.1032 71.9420 82 68 44.4324 52.0285 60.6181 70.1789 80.3300 83 69 48.9323 57.4780 67.2228 78.1361 89.4620 84 70 54.0980 63.7360 74.7780 87.1900 100.1500 85 71 59.7885 70.6248 83.0584 97.3522 112.8940 86 72 65.8939 78.0160 91.9249 108.4790 126.9500 87 73 72.6260 86.1757 101.7148 120.5534 141.8100 88 74 80.1962 95.3696 112.7660 133.5580 156.9340 89 75 88.8160 105.8640 125.4160 147.4760 172.0920 90 76 100.3025 119.9050 142.4123 164.1566 187.5020 91 77 111.7891 133.9460 159.4086 180.8371 203.2820 92 78 123.2756 147.9870 176.4049 197.5177 219.3060 93 79 134.7622 162.0280 193.4012 214.1982 235.4440 94 80 146.2487 176.0690 210.3975 230.8788 251.3600 95 267.1320 96 283.3400 97 299.9920 98 317.0720 99 350.5000 100 414.7060 101 508.0080 102 643.5640 103 813.1800 104
Blended Non Smoker
Attained Ultimate Age 1,000.0000 105 1,000.0000 106 1,000.0000 107 1,000.0000 108 1,000.0000 109 1,000.0000 110 1,000.0000 111 1,000.0000 112 1,000.0000 113 1,000.0000 114 1,000.0000 115 1,000.0000 116 1,000.0000 117 1,000.0000 118 1,000.0000 119
Blended Smoker 91 Bragg, Blended Smoker Assumes 80% Male, 20% Female
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 0 1.5832 0.9166 0.6448 0.5769 0.5090 0.4449 0.4261 0.3846 0.3770 0.3770 0.3958 1 1.4270 0.8156 0.5596 0.4957 0.4289 0.3826 0.4190 0.3341 0.3449 0.3864 0.4402 2 1.1747 0.7016 0.4914 0.4386 0.3770 0.3460 0.4224 0.3343 0.3741 0.4791 0.5844 3 0.8862 0.5889 0.4397 0.4024 0.3517 0.3355 0.4326 0.3738 0.4443 0.6166 0.7759 4 0.6210 0.4917 0.4035 0.3841 0.3513 0.3512 0.4457 0.4415 0.5357 0.7607 0.9624 5 0.4389 0.4270 0.3841 0.3872 0.3742 0.3934 0.4577 0.5257 0.6279 0.8732 1.0912 6 0.3605 0.4270 0.3698 0.3903 0.4296 0.4883 0.5917 0.6481 0.7358 0.9564 1.1511 7 0.3185 0.4299 0.3743 0.4145 0.5183 0.6304 0.7865 0.8158 0.8729 1.0358 1.1847 8 0.3242 0.4327 0.3810 0.4568 0.6270 0.7922 1.0010 0.9972 1.0168 1.1079 1.2014 9 0.3299 0.4355 0.4245 0.5202 0.7418 0.9466 1.1942 1.1604 1.1454 1.1681 1.2104 10 0.3769 0.4383 0.5064 0.6078 0.8492 1.0661 1.3213 1.2705 1.2338 1.2157 1.2198 11 0.4734 0.5995 0.6566 0.7437 0.9598 1.1522 1.3271 1.3300 1.2855 1.2461 1.2235 12 0.6223 0.8377 0.8688 0.9259 1.0883 1.2231 1.3239 1.3511 1.3073 1.2628 1.2249 13 0.7881 1.0987 1.0978 1.1175 1.2104 1.2767 1.3194 1.3385 1.3013 1.2682 1.2242 14 0.9356 1.3282 1.2985 1.2835 1.3092 1.3106 1.3162 1.3263 1.2959 1.2598 1.2220 15 1.0289 1.4720 1.4239 1.3872 1.3660 1.3054 1.3160 1.3000 1.2760 1.2540 1.2170 16 1.0351 1.5130 1.4654 1.3924 1.3685 1.3028 1.2764 1.2608 1.2422 1.2326 1.2099 17 1.0393 1.4871 1.4471 1.3936 1.3292 1.2518 1.2170 1.1984 1.1854 1.1947 1.1919 18 0.9972 1.4203 1.3928 1.3392 1.2665 1.1857 1.1496 1.1270 1.1200 1.1508 1.1721 19 0.9492 1.3387 1.3245 1.2738 1.1990 1.1214 1.0857 1.0608 1.0607 1.1111 1.1558 20 0.9140 1.2680 1.2640 1.2180 1.1463 1.0720 1.0393 1.0140 1.0220 1.0860 1.1486 21 0.8914 1.2012 1.2038 1.1670 1.1012 1.0377 1.0050 1.0129 1.0324 1.0988 1.1483 22 0.8691 1.1210 1.1293 1.1042 1.0524 1.0070 0.9794 1.0142 1.0453 1.1148 1.1562 23 0.8470 1.0380 1.0518 1.0396 1.0080 0.9838 0.9639 1.0174 1.0601 1.1329 1.1651 24 0.8257 0.9628 0.9825 0.9835 0.9742 0.9716 0.9716 1.0215 1.0759 1.1523 1.2003 25 0.8060 0.9060 0.9336 0.9460 0.9580 0.9802 0.9800 1.0260 1.0920 1.1720 1.2680 26 0.7843 0.8700 0.9023 0.9526 0.9618 0.9885 1.0140 1.0790 1.1611 1.2604 1.3729 27 0.7615 0.8439 0.8818 0.9593 0.9656 1.0115 1.0622 1.1483 1.2485 1.3746 1.5080 28 0.7398 0.8298 0.8800 0.9672 0.9888 1.0486 1.1266 1.2352 1.3544 1.5101 1.6661 29 0.7225 0.8276 0.8867 0.9777 1.0303 1.1051 1.2099 1.3407 1.4788 1.6620 1.8398 30 0.7158 0.8282 0.9020 0.9920 1.0940 1.1860 1.3140 1.4660 1.6220 1.8260 2.0220 31 0.7167 0.8348 0.9367 1.0560 1.1818 1.2951 1.4421 1.6136 1.7841 1.9964 2.2028 32 0.7257 0.8485 0.9838 1.1382 1.2909 1.4288 1.5928 1.7828 1.9652 2.1765 2.3871 33 0.7385 0.8656 1.0461 1.2387 1.4187 1.5818 1.7614 1.9697 2.1647 2.3744 2.5895 34 0.7665 0.9024 1.1265 1.3579 1.5626 1.7487 1.9433 2.1707 2.3824 2.5982 2.8250 35 0.8100 0.9600 1.2280 1.4960 1.7200 1.9240 2.1340 2.3820 2.6180 2.8560 3.1080 36 0.8692 1.0414 1.3543 1.6553 1.8882 2.1005 2.3228 2.5896 2.8570 3.1364 3.4276 37 0.9418 1.1432 1.5032 1.8356 2.0691 2.2819 2.5127 2.7959 3.0996 3.4340 3.7737 38 1.0275 1.2606 1.6696 2.0334 2.2663 2.4789 2.7198 3.0220 3.3676 3.7658 4.1635 39 1.1257 1.3891 1.8477 2.2453 2.4840 2.7027 2.9602 3.2890 3.6825 4.1495 4.6132 40 1.2360 1.5240 2.0320 2.4680 2.7260 2.9640 3.2500 3.6180 4.0660 4.6020 5.1400 41 1.3632 1.6604 2.2146 2.6919 2.9853 3.2580 3.5879 4.0144 4.5303 5.1435 5.7777 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 0 0.4599 0.5278 0.6297 0.8751 1.0930 15 1 0.5429 0.5949 0.6807 0.8998 1.3561 16 2 0.7406 0.7631 0.8159 0.9748 1.2975 17 3 0.9863 0.9745 0.9880 1.0726 1.2546 18 4 1.2133 1.1717 1.1499 1.1656 1.2265 19 5 1.3548 1.2968 1.2542 1.2264 1.2300 20 6 1.3606 1.3328 1.2490 1.2270 1.2300 21 7 1.3664 1.3234 1.2438 1.2277 1.2300 22 8 1.3142 1.2890 1.2386 1.2283 1.2300 23 9 1.2581 1.2502 1.2333 1.2290 1.2300 24 10 1.2241 1.2274 1.2277 1.2295 1.2300 25 11 1.2208 1.2234 1.2234 1.2294 1.2300 26 12 1.2172 1.2194 1.2188 1.2292 1.2300 27 13 1.2144 1.2167 1.2156 1.2284 1.2300 28 14 1.2126 1.2155 1.2138 1.2270 1.2300 29 15 1.2104 1.2171 1.2138 1.2281 1.2300 30 16 1.2091 1.2201 1.2147 1.2313 1.2300 31 17 1.2074 1.2261 1.2195 1.2405 1.2440 32 18 1.2058 1.2320 1.2254 1.2507 1.2840 33 19 1.2042 1.2380 1.2454 1.2793 1.3320 34 20 1.2062 1.2440 1.2840 1.3320 1.4000 35 21 1.2169 1.2771 1.3383 1.4091 1.4960 36 22 1.2395 1.3157 1.4039 1.5049 1.6120 37 23 1.2635 1.3678 1.4853 1.6192 1.7600 38 24 1.3137 1.4413 1.5866 1.7517 1.9360 39 25 1.3960 1.5440 1.7120 1.9020 2.1240 40 26 1.5146 1.6786 1.8611 2.0655 2.3240 41 27 1.6628 1.8400 2.0310 2.2425 2.5360 42 28 1.8341 2.0240 2.2225 2.4398 2.7360 43 29 2.0219 2.2267 2.4366 2.6646 2.9480 44 30 2.2200 2.4440 2.6740 2.9240 3.1980 45 31 2.4163 2.6624 2.9209 3.2045 3.4920 46 32 2.6151 2.8847 3.1766 3.5013 3.8480 47 33 2.8343 3.1311 3.4620 3.8346 4.2560 48 34 3.0920 3.4221 3.7982 4.2248 4.7160 49 35 3.4060 3.7780 4.2060 4.6920 5.2240 50 36 3.7662 4.1913 4.6818 5.2382 5.8140 51 37 4.1606 4.6484 5.2117 5.8500 6.4840 52 38 4.6044 5.1606 5.8011 6.5242 7.2440 53 39 5.1131 5.7394 6.4554 7.2580 8.0720 54 40 5.7020 6.3960 7.1800 8.0480 8.9660 55 41 6.4124 7.1642 7.9925 8.8868 9.9120 56
Blended Smoker Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 42 1.5075 1.8013 2.3992 2.9193 3.2595 3.5773 3.9630 4.4641 5.0609 5.7626 6.5152 43 1.6618 1.9541 2.5976 3.1644 3.5586 3.9293 4.3776 4.9590 5.6396 6.4290 7.3016 44 1.8191 2.1266 2.8219 3.4412 3.8934 4.3218 4.8332 5.4910 6.2480 7.1129 8.0855 45 1.9720 2.3260 3.0840 3.7640 4.2740 4.7620 5.3320 6.0520 6.8680 7.7840 8.8160 46 2.1056 2.5426 3.3755 4.1279 4.7040 5.2631 5.8903 6.6539 7.5003 8.4226 9.4472 47 2.2246 2.7714 3.6884 4.5235 5.1764 5.8203 6.5067 7.3019 8.1571 9.0488 10.0131 48 2.3517 3.0271 4.0354 4.9579 5.6860 6.4136 7.1569 7.9785 8.8371 9.6923 10.5826 49 2.5093 3.3244 4.4291 5.4383 6.2276 7.0234 7.8161 8.6657 9.5392 10.3828 11.2246 50 2.7200 3.6780 4.8820 5.9720 6.7960 7.6300 8.4600 9.3460 10.2620 11.1500 12.0080 51 2.9857 4.1025 5.4128 6.5741 7.3878 8.2103 9.0562 9.9728 10.9506 11.9381 12.8634 52 3.2913 4.5883 6.0130 7.2399 8.0064 8.7776 9.6210 10.5579 11.6057 12.7272 13.7451 53 3.6341 5.1130 6.6549 7.9464 8.6570 9.3661 10.2029 11.1711 12.3099 13.6011 14.7569 54 4.0113 5.6550 7.3105 8.6708 9.3445 10.0108 10.8504 11.8819 13.1458 14.6441 16.0026 55 4.4200 6.1920 7.9520 9.3900 10.0740 10.7460 11.6120 12.7600 14.1960 15.9400 17.5860 56 4.8709 6.7124 8.5690 10.0976 10.8508 11.5892 12.5015 13.8325 15.4970 17.5203 19.5687 57 5.3656 7.2311 9.1801 10.8088 11.6713 12.5172 13.4865 15.0528 16.9939 19.3289 21.8812 58 5.8887 7.7652 9.8008 11.5335 12.5280 13.5040 14.5464 16.3805 18.6317 21.3188 24.4317 59 6.4240 8.3324 10.4469 12.2813 13.4128 14.5236 15.6604 17.7751 20.3554 23.4428 27.1280 60 6.9560 8.9500 11.1340 13.0620 14.3180 15.5500 16.8080 19.1960 22.1100 25.6540 29.8780 61 7.4486 9.6104 11.8548 13.8566 15.1962 16.4645 17.8454 20.4936 23.7627 27.9001 32.6771 62 7.9122 10.3020 12.5988 14.6588 16.0528 17.2847 18.7864 21.6949 25.3500 30.2127 35.5868 63 8.4010 11.0363 13.3771 15.4967 16.9584 18.1881 19.8466 23.0244 27.0714 32.6697 38.6139 64 8.9690 11.8245 14.2005 16.3990 17.9846 19.3527 21.2412 24.7067 29.1263 35.3495 41.7653 65 9.6700 12.6780 15.0800 17.3940 19.2020 20.9560 23.1860 26.9660 31.7140 38.3300 45.0480 66 10.5252 13.5640 15.9291 18.3750 20.5247 23.0395 25.7643 29.8805 34.8719 41.5236 48.2748 67 11.4984 14.4751 16.7403 19.3233 21.9051 25.4847 28.8325 33.3005 38.4671 44.8782 51.4411 68 12.5583 15.4601 17.6437 20.3985 23.4726 28.2295 32.2653 37.1090 42.4435 48.5254 54.8277 69 13.6733 16.5688 18.7689 21.7608 25.3565 31.2119 35.9375 41.1892 46.7451 52.5968 58.7151 70 14.8120 17.8500 20.2460 23.5700 27.6860 34.3700 39.7240 45.4240 51.3160 57.2240 63.3840 71 15.9497 19.2917 22.0699 25.8129 30.4277 37.6250 43.5151 49.6955 56.0437 62.3299 68.7930 72 17.1075 20.8610 24.1541 28.3829 33.4952 41.0182 47.3944 54.0815 60.9656 67.8267 74.7550 73 18.3221 22.5763 26.5060 31.2999 36.9390 44.6677 51.5261 58.7593 66.2502 73.8302 81.3321 74 19.6307 24.4558 29.1329 34.5837 40.8091 48.6917 56.0745 63.9057 72.0662 80.4560 88.5865 75 21.0700 26.5180 32.0420 38.2540 45.1560 53.2080 61.2040 69.6980 78.5820 87.8200 96.5800 76 22.8523 29.1037 35.7882 43.0577 50.8659 59.0442 67.8576 77.1915 86.9728 97.2439 106.7086 77 24.6346 31.6893 39.5345 47.8614 56.5758 64.8804 74.5112 84.6850 95.3636 106.6678 116.8372 78 26.4170 34.2750 43.2807 52.6650 62.2858 70.7166 81.1648 92.1785 103.7544 116.0917 126.9658 79 28.1993 36.8607 47.0269 57.4687 67.9957 76.5528 87.8184 99.6720 112.1453 125.5156 137.0944 80 29.9816 39.4463 50.7732 62.2724 73.7056 82.3891 94.4721 107.1655 120.5361 134.9396 147.2230
Duration/Issue Attained Age 11 12 13 14 Ultimate Age 42 7.2342 8.0363 8.8893 9.7763 10.8860 57 43 8.1053 8.9620 9.8439 10.7281 11.8540 58 44 8.9633 9.8907 10.8303 11.7536 12.8680 59 45 9.7460 10.7720 11.8220 12.8640 13.9880 60 46 10.3813 11.5360 12.7579 14.0165 15.3040 61 47 10.9105 12.2165 13.6557 15.2035 16.8420 62 48 11.4421 12.9181 14.6069 16.4893 18.5700 63 49 12.0845 13.7457 15.7031 17.9387 20.4640 64 50 12.9460 14.8040 17.0360 19.6160 22.5540 65 51 13.9662 16.0316 18.5548 21.4853 24.8360 66 52 15.0728 17.3585 20.1985 23.5034 27.3120 67 53 16.3566 18.8770 22.0431 25.7246 29.9620 68 54 17.9080 20.6794 24.1648 28.2027 32.7980 69 55 19.8180 22.8580 26.6400 30.9920 35.8560 70 56 22.1541 25.4777 29.5183 34.1205 39.1720 71 57 24.8557 28.4770 32.7491 37.5521 42.7700 72 58 27.8216 31.7584 36.2575 41.2446 46.6380 73 59 30.9502 35.2245 39.9687 45.1560 50.7560 74 60 34.1400 38.7780 43.8080 49.2440 55.1160 75 61 37.4360 42.4636 47.7984 53.4910 59.7140 76 62 40.9059 46.3465 51.9898 57.9253 64.5120 77 63 44.4821 50.3592 56.3475 62.5731 69.4800 78 64 48.0972 54.4342 60.8371 67.4606 74.6620 79 65 51.6840 58.5040 65.4240 72.6140 80.1660 80 66 54.9404 62.2388 69.7508 77.6736 86.1180 81 67 57.9116 65.6835 73.8405 82.6218 92.5100 82 68 61.0501 69.3329 78.2292 87.9983 99.2300 83 69 64.8087 73.6821 83.4531 94.3431 106.3340 84 70 69.6400 79.2260 90.0480 102.1960 115.5500 85 71 75.5340 85.9481 97.9735 111.7626 127.7680 86 72 82.1888 93.5184 106.8724 122.6833 141.5280 87 73 89.6197 101.9617 116.8053 134.6492 155.9880 88 74 97.8417 111.3026 127.8329 147.3517 170.2920 89 75 106.8700 121.5660 140.0160 160.4820 183.8720 90 76 118.2970 134.5637 155.5846 175.3075 196.8200 91 77 129.7240 147.5615 171.1533 190.1330 209.6340 92 78 141.1509 160.5592 186.7219 204.9586 222.7340 93 79 152.5779 173.5569 202.2906 219.7841 236.5100 94 80 164.0049 186.5547 217.8592 234.6096 251.3600 95 267.1320 96 283.3400 97 299.9920 98 317.0720 99 350.5000 100 414.7060 101 508.0080 102 643.5640 103 813.1800 104
Blended Smoker
Attained Ultimate Age 1,000.0000 105 1,000.0000 106 1,000.0000 107 1,000.0000 108 1,000.0000 109 1,000.0000 110 1,000.0000 111 1,000.0000 112 1,000.0000 113 1,000.0000 114 1,000.0000 115 1,000.0000 116 1,000.0000 117 1,000.0000 118 1,000.0000 119
Female Non Smoker 91 Bragg, Female Non Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 0 0.8400 0.3300 0.3000 0.2700 0.2400 0.2200 0.2000 0.1800 0.1900 0.1900 0.2100 1 0.7147 0.2467 0.2149 0.1886 0.1607 0.2178 0.2058 0.1172 0.1314 0.1398 0.1647 2 0.5718 0.2094 0.1771 0.1586 0.1360 0.2156 0.2116 0.1225 0.1421 0.1632 0.1939 3 0.4294 0.2010 0.1696 0.1611 0.1459 0.2134 0.2174 0.1670 0.1920 0.2267 0.2628 4 0.3054 0.2043 0.1757 0.1771 0.1702 0.2112 0.2232 0.2222 0.2511 0.2967 0.3364 5 0.2179 0.2052 0.1780 0.1864 0.1890 0.2091 0.2292 0.2593 0.2894 0.3395 0.3796 6 0.2159 0.2061 0.1855 0.1956 0.2072 0.2336 0.2513 0.2806 0.3079 0.3456 0.3786 7 0.2139 0.2102 0.1927 0.2140 0.2383 0.2708 0.2814 0.3052 0.3266 0.3517 0.3776 8 0.2119 0.2143 0.2117 0.2379 0.2747 0.3122 0.3137 0.3297 0.3440 0.3578 0.3766 9 0.2099 0.2184 0.2331 0.2625 0.3088 0.3493 0.3425 0.3508 0.3584 0.3639 0.3755 10 0.2131 0.2224 0.2526 0.2829 0.3330 0.3736 0.3513 0.3554 0.3642 0.3670 0.3728 11 0.2162 0.2431 0.2726 0.3000 0.3389 0.3705 0.3608 0.3621 0.3682 0.3700 0.3706 12 0.2290 0.2718 0.2957 0.3170 0.3448 0.3673 0.3595 0.3588 0.3681 0.3678 0.3668 13 0.2438 0.3029 0.3187 0.3326 0.3496 0.3646 0.3590 0.3576 0.3662 0.3656 0.3636 14 0.2583 0.3306 0.3382 0.3454 0.3534 0.3623 0.3593 0.3584 0.3626 0.3622 0.3611 15 0.2674 0.3393 0.3432 0.3490 0.3549 0.3598 0.3581 0.3571 0.3612 0.3607 0.3593 16 0.2765 0.3479 0.3482 0.3526 0.3553 0.3576 0.3576 0.3578 0.3581 0.3579 0.3582 17 0.2830 0.3467 0.3453 0.3510 0.3535 0.3552 0.3557 0.3564 0.3573 0.3570 0.3579 18 0.2895 0.3455 0.3424 0.3494 0.3517 0.3528 0.3538 0.3550 0.3565 0.3561 0.3576 19 0.2961 0.3443 0.3396 0.3477 0.3499 0.3504 0.3519 0.3535 0.3558 0.3552 0.3574 20 0.2946 0.3371 0.3337 0.3432 0.3466 0.3473 0.3510 0.3536 0.3589 0.3579 0.3630 21 0.2931 0.3298 0.3279 0.3386 0.3433 0.3441 0.3500 0.3536 0.3620 0.3612 0.3687 22 0.2835 0.3108 0.3160 0.3312 0.3386 0.3402 0.3500 0.3552 0.3690 0.3699 0.3837 23 0.2739 0.2899 0.3035 0.3238 0.3339 0.3363 0.3500 0.3568 0.3760 0.3792 0.4032 24 0.2644 0.2709 0.2943 0.3164 0.3293 0.3324 0.3500 0.3584 0.3830 0.3959 0.4283 25 0.2591 0.2635 0.2893 0.3158 0.3284 0.3355 0.3585 0.3600 0.3900 0.4200 0.4600 26 0.2539 0.2560 0.2861 0.3152 0.3282 0.3386 0.3669 0.3811 0.4150 0.4509 0.4972 27 0.2529 0.2545 0.2871 0.3214 0.3338 0.3532 0.3896 0.4087 0.4457 0.4873 0.5393 28 0.2519 0.2530 0.2881 0.3276 0.3400 0.3729 0.4179 0.4427 0.4829 0.5302 0.5878 29 0.2510 0.2515 0.2891 0.3338 0.3552 0.3982 0.4514 0.4832 0.5274 0.5807 0.6442 30 0.2535 0.2545 0.2900 0.3400 0.3800 0.4300 0.4900 0.5300 0.5800 0.6400 0.7100 31 0.2560 0.2588 0.3116 0.3716 0.4163 0.4673 0.5317 0.5819 0.6403 0.7080 0.7857 32 0.2620 0.2676 0.3414 0.4134 0.4621 0.5097 0.5766 0.6390 0.7078 0.7840 0.8702 33 0.2680 0.2811 0.3764 0.4615 0.5149 0.5585 0.6278 0.7030 0.7830 0.8680 0.9630 34 0.2740 0.2984 0.4136 0.5117 0.5718 0.6148 0.6879 0.7761 0.8669 0.9600 1.0631 35 0.2800 0.3200 0.4500 0.5600 0.6300 0.6800 0.7600 0.8600 0.9600 1.0600 1.1700 36 0.3089 0.3470 0.4864 0.6077 0.6920 0.7572 0.8466 0.9556 1.0605 1.1630 1.2756 37 0.3478 0.3789 0.5248 0.6574 0.7596 0.8456 0.9457 1.0616 1.1678 1.2691 1.3804 38 0.3914 0.4143 0.5640 0.7074 0.8292 0.9404 1.0535 1.1768 1.2850 1.3857 1.4964 39 0.4339 0.4518 0.6028 0.7555 0.8972 1.0368 1.1662 1.3000 1.4147 1.5202 1.6356 40 0.4700 0.4900 0.6400 0.8000 0.9600 1.1300 1.2800 1.4300 1.5600 1.6800 1.8100 41 0.4974 0.5237 0.6826 0.8427 1.0046 1.2085 1.3855 1.5598 1.7176 1.8671 2.0268 42 0.5197 0.5538 0.7026 0.8516 1.0335 1.2754 1.4854 1.6901 1.8856 2.0766 2.2780 43 0.5403 0.5882 0.7026 0.8605 1.0661 1.3482 1.5934 1.8315 2.0688 2.3054 2.5528 44 0.5626 0.6343 0.7405 0.9002 1.1218 1.4439 1.7237 1.9946 2.2720 2.5509 2.8404 45 0.5900 0.7000 0.8100 0.9800 1.2200 1.5800 1.8900 2.1900 2.5000 2.8100 3.1300 46 0.6189 0.7876 0.9120 1.1013 1.3656 1.7674 2.1058 2.4320 2.7645 3.0878 3.4200 47 0.6470 0.8920 1.0372 1.2518 1.5456 1.9947 2.3619 2.7136 3.0622 3.3861 3.7176 48 0.6798 1.0096 1.1844 1.4298 1.7528 2.2453 2.6381 3.0132 3.3758 3.6975 4.0252 49 0.7223 1.1368 1.3524 1.6331 1.9800 2.5026 2.9142 3.3092 3.6875 4.0146 4.3452 50 0.7800 1.2700 1.5400 1.8600 2.2200 2.7500 3.1700 3.5800 3.9800 4.3300 4.6800 51 0.8582 1.4188 1.7594 2.1214 2.4800 2.9844 3.3979 3.8102 4.2343 4.6244 5.0066 52 0.9535 1.5856 2.0113 2.4187 2.7648 3.2168 3.6114 4.0143 4.4622 4.9028 5.3233 53 1.0577 1.7560 2.2775 2.7353 3.0636 3.4520 3.8218 4.2153 4.6918 5.1940 5.6647 54 1.1626 1.9156 2.5398 3.0546 3.3656 3.6948 4.0409 4.4362 4.9517 5.5268 6.0654 55 1.2600 2.0500 2.7800 3.3600 3.6600 3.9500 4.2800 4.7000 5.2700 5.9300 6.5600 56 1.3487 2.1499 2.9991 3.6582 3.9439 4.2085 4.5203 4.9847 5.6182 6.3670 7.1079 57 1.4342 2.2250 3.2094 3.9601 4.2246 4.4670 4.7542 5.2750 5.9773 6.8185 7.6862 58 1.5182 2.2890 3.4090 4.2559 4.5062 4.7394 5.0098 5.6038 6.3903 7.3395 8.3554 59 1.6029 2.3561 3.5965 4.5358 4.7933 5.0391 5.3157 6.0045 6.9002 7.9850 9.1765 60 1.6900 2.4400 3.7700 4.7900 5.0900 5.3800 5.7000 6.5100 7.5500 8.8100 10.2100 61 1.7740 2.5315 3.8976 4.9704 5.3494 5.7143 6.1170 7.0673 8.2804 9.7496 11.3699 62 1.8536 2.6214 3.9804 5.0836 5.5685 6.0330 6.5479 7.6542 9.0628 10.7672 12.6158 63 1.9372 2.7234 4.0664 5.2016 5.8179 6.4074 7.0613 8.3506 9.9860 11.9600 14.0766 64 2.0332 2.8517 4.2036 5.3964 6.1682 6.9093 7.7258 9.2359 11.1388 13.4252 15.8817 65 2.1500 3.0200 4.4400 5.7400 6.6900 7.6100 8.6100 10.3900 12.6100 15.2600 18.1600 66 2.2678 3.2044 4.7823 6.2623 7.4229 8.5595 9.7500 11.8659 14.4846 17.5959 21.1404 67 2.3809 3.3956 5.1986 6.9154 8.3198 9.7102 11.1000 13.6106 16.7033 20.3682 24.7368 68 2.5191 3.6296 5.6786 7.6542 9.3214 10.9870 12.6060 15.5442 19.1387 23.3794 28.6060 69 2.7122 3.9424 6.2125 8.4341 10.3679 12.3153 14.2140 17.5873 21.6634 26.4325 32.4048 70 2.9900 4.3700 6.7900 9.2100 11.4000 13.6200 15.8700 19.6600 24.1500 29.3300 35.7900 71 3.3459 4.9007 7.4007 9.9629 12.3877 14.8595 17.5193 21.6909 26.5101 31.9634 38.6120 72 3.7602 5.5106 8.0512 10.7227 13.3706 16.0837 19.1978 23.7330 28.8287 34.4643 41.0996 73 4.2425 6.2171 8.7573 11.5181 14.3937 17.3551 20.9877 25.8937 31.2382 36.9954 43.4773 74 4.8025 7.0378 9.5350 12.3776 15.5018 18.7364 22.9711 28.2803 33.8712 39.7197 45.9692 75 5.4500 7.9900 10.4000 13.3300 16.7400 20.2900 25.2300 31.0000 36.8600 42.8000 48.8000 76 6.3468 9.3137 11.5059 14.5226 18.3083 22.2773 28.2061 34.5762 40.7398 46.7312 52.3479 77 7.2436 10.6375 12.6117 15.7152 19.8765 24.2646 31.1822 38.1524 44.6197 50.6625 55.8957 78 8.1404 11.9612 13.7176 16.9078 21.4448 26.2519 34.1583 41.7286 48.4995 54.5937 59.4436 79 9.0372 13.2850 14.8234 18.1004 23.0131 28.2392 37.1344 45.3048 52.3794 58.5250 62.9914 80 9.9339 14.6087 15.9293 19.2930 24.5814 30.2264 40.1105 48.8810 56.2592 62.4562 66.5393 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 0 0.2300 0.2600 0.2900 0.3400 0.3800 15 1 0.1828 0.2102 0.2376 0.3472 0.3800 16 2 0.2076 0.2286 0.2495 0.3544 0.3800 17 3 0.2710 0.2838 0.2965 0.3616 0.3800 18 4 0.3395 0.3447 0.3497 0.3688 0.3800 19 5 0.3797 0.3799 0.3799 0.3728 0.3800 20 6 0.3797 0.3799 0.3799 0.3768 0.3800 21 7 0.3797 0.3799 0.3799 0.3776 0.3800 22 8 0.3797 0.3799 0.3799 0.3784 0.3800 23 9 0.3797 0.3799 0.3799 0.3792 0.3800 24 10 0.3797 0.3800 0.3800 0.3796 0.3800 25 11 0.3784 0.3786 0.3800 0.3800 0.3800 26 12 0.3771 0.3773 0.3790 0.3800 0.3800 27 13 0.3742 0.3746 0.3780 0.3800 0.3800 28 14 0.3698 0.3704 0.3766 0.3800 0.3800 29 15 0.3694 0.3705 0.3786 0.3800 0.3800 30 16 0.3675 0.3690 0.3802 0.3880 0.3800 31 17 0.3697 0.3718 0.3852 0.3960 0.3800 32 18 0.3719 0.3746 0.3902 0.4040 0.4000 33 19 0.3740 0.3773 0.3951 0.4120 0.4200 34 20 0.3818 0.3800 0.4000 0.4200 0.4500 35 21 0.3895 0.3982 0.4245 0.4493 0.4900 36 22 0.4058 0.4211 0.4555 0.4854 0.5300 37 23 0.4268 0.4498 0.4931 0.5290 0.5800 38 24 0.4543 0.4857 0.5378 0.5803 0.6400 39 25 0.4900 0.5300 0.5900 0.6400 0.7000 40 26 0.5330 0.5823 0.6483 0.7066 0.7800 41 27 0.5823 0.6418 0.7126 0.7797 0.8600 42 28 0.6390 0.7090 0.7846 0.8615 0.9600 43 29 0.7045 0.7849 0.8665 0.9542 1.0600 44 30 0.7800 0.8700 0.9600 1.0600 1.1700 45 31 0.8667 0.9641 1.0646 1.1777 1.3000 46 32 0.9638 1.0666 1.1789 1.3058 1.4400 47 33 1.0694 1.1782 1.3039 1.4462 1.6000 48 34 1.1821 1.2991 1.4406 1.6003 1.7800 49 35 1.3000 1.4300 1.5900 1.7700 1.9600 50 36 1.4130 1.5625 1.7454 1.9509 2.1700 51 37 1.5221 1.6962 1.9063 2.1418 2.3900 52 38 1.6427 1.8438 2.0825 2.3494 2.6300 53 39 1.7902 2.0175 2.2838 2.5799 2.8800 54 40 1.9800 2.2300 2.5200 2.8400 3.1600 55 41 2.2230 2.4890 2.7950 3.1277 3.4700 56 42 2.5091 2.7863 3.1023 3.4386 3.8000 57 43 2.8217 3.1101 3.4361 3.7758 4.1600 58 44 3.1442 3.4486 3.7906 4.1419 4.5400 59 45 3.4600 3.7900 4.1600 4.5400 4.9600 60 46 3.7575 4.1214 4.5305 4.9562 5.4400 61 47 4.0478 4.4507 4.9058 5.3887 5.9600 62 48 4.3482 4.7973 5.3070 5.8581 6.5100 63 49 4.6765 5.1806 5.7547 6.3850 7.1000 64 50 5.0500 5.6200 6.2700 6.9900 7.7700 65 51 5.4493 6.0919 6.8246 7.6398 8.5400 66 52 5.8626 6.5834 7.4047 8.3205 9.4100 67 53 6.3194 7.1298 8.0525 9.0823 10.3300 68 54 6.8487 7.7669 8.8102 9.9754 11.3400 69 55 7.4800 8.5300 9.7200 11.0500 12.5100 70 56 8.1625 9.3608 10.7148 12.2298 13.9100 71 57 8.8766 10.2356 11.7664 13.4815 15.5200 72 58 9.6986 11.2420 12.9756 14.9193 17.2800 73 59 10.7043 12.4676 14.4432 16.6574 19.2300 74 60 11.9700 14.0000 16.2700 18.8100 21.5200 75 61 13.4026 15.7402 18.3526 21.2710 24.3100 76 62 14.9515 17.6297 20.6239 23.9641 27.6300 77 63 16.7561 19.8171 23.2389 27.0487 31.3900 78 64 18.9558 22.4510 26.3526 30.6842 35.5900 79 65 21.6900 25.6800 30.1200 35.0300 40.3700 80 66 25.1727 29.6730 34.6350 40.0737 45.8700 81 67 29.3110 34.3309 39.7941 45.7090 52.1100 82 68 33.7838 39.4003 45.4567 51.9546 59.0100 83 69 38.2705 44.6278 51.4822 58.8287 66.5900 84 70 42.4500 49.7600 57.7300 66.3500 75.5900 85 71 46.1571 54.6102 63.9769 74.5069 86.3900 86 72 49.6057 59.3474 70.3168 83.2872 98.3500 87 73 53.0437 64.2516 77.0841 92.7080 111.0100 88 74 56.7192 69.6024 84.6137 102.7866 123.8700 89 75 60.8800 75.6800 93.2400 113.5400 136.6600 90 76 66.1663 83.5643 104.7105 126.2952 149.5100 91 77 71.4526 91.4487 116.1809 139.0505 162.6100 92 78 76.7389 99.3330 127.6514 151.8057 176.0500 93 79 82.0252 107.2174 139.1219 164.5609 189.9000 94 80 87.3115 115.1017 150.5924 177.3162 204.0400 95 218.5000 96 233.5000 97 249.0400 98 265.1200 99 296.3000 100 363.2100 101 468.3200 102 613.2600 103 796.7400 104 1,000.0000 105 1,000.0000 106 1,000.0000 107 1,000.0000 108 1,000.0000 109 1,000.0000 110 1,000.0000 111 1,000.0000 112 1,000.0000 113 1,000.0000 114 1,000.0000 115 1,000.0000 116 1,000.0000 117 1,000.0000 118 1,000.0000 119
Female Smoker 91 Bragg, Female Smoker
Duration/Issue Age 0 1 2 3 4 5 6 7 8 9 10 0 1.5695 0.6166 0.5605 0.5045 0.4484 0.4111 0.3737 0.3363 0.3550 0.3550 0.3924 1 1.4090 0.5360 0.4766 0.4275 0.3737 0.4070 0.3172 0.2925 0.3189 0.3344 0.3812 2 1.1513 0.4779 0.4176 0.3833 0.3368 0.4029 0.3138 0.3114 0.3480 0.3870 0.4450 3 0.8576 0.4371 0.3787 0.3631 0.3276 0.3988 0.3440 0.3670 0.4137 0.4777 0.5461 4 0.5892 0.4084 0.3553 0.3583 0.3364 0.3947 0.3886 0.4333 0.4875 0.5718 0.6468 5 0.4071 0.4004 0.3508 0.3670 0.3531 0.3907 0.4282 0.4845 0.5407 0.6343 0.7093 6 0.4027 0.3924 0.3462 0.3757 0.3891 0.4391 0.4729 0.5275 0.5783 0.6655 0.7074 7 0.3983 0.3982 0.3690 0.4105 0.4509 0.5138 0.5356 0.5796 0.6191 0.6888 0.7055 8 0.3939 0.4040 0.4030 0.4545 0.5216 0.5950 0.6012 0.6302 0.6561 0.7035 0.7036 9 0.3894 0.4098 0.4400 0.4972 0.5844 0.6630 0.6545 0.6690 0.6820 0.7046 0.7017 10 0.3898 0.4155 0.4720 0.5286 0.6222 0.6980 0.6621 0.6698 0.6761 0.7057 0.6942 11 0.3924 0.4537 0.5032 0.5497 0.6208 0.6903 0.6697 0.6705 0.6701 0.6866 0.6867 12 0.3999 0.5087 0.5391 0.5674 0.6194 0.6528 0.6324 0.6315 0.6285 0.6523 0.6683 13 0.4098 0.5671 0.5732 0.5765 0.5975 0.6005 0.5825 0.5815 0.5777 0.6120 0.6482 14 0.4197 0.6153 0.5988 0.5813 0.5719 0.5480 0.5337 0.5333 0.5305 0.5748 0.6302 15 0.4243 0.6400 0.5994 0.5758 0.5500 0.5100 0.5000 0.5000 0.5000 0.5500 0.6244 16 0.4257 0.6364 0.6000 0.5659 0.5286 0.4854 0.4928 0.4940 0.5020 0.5500 0.6185 17 0.4169 0.6136 0.5752 0.5366 0.5027 0.4644 0.4856 0.4880 0.5040 0.5500 0.6189 18 0.4013 0.5785 0.5421 0.5025 0.4771 0.4487 0.4784 0.4820 0.5060 0.5500 0.6193 19 0.3847 0.5383 0.5080 0.4710 0.4566 0.4444 0.4713 0.4760 0.5080 0.5500 0.6197 20 0.3700 0.5000 0.4800 0.4500 0.4516 0.4400 0.4763 0.4700 0.5100 0.5500 0.6200 21 0.3560 0.4578 0.4558 0.4500 0.4506 0.4504 0.4813 0.4964 0.5458 0.5902 0.6609 22 0.3409 0.4071 0.4305 0.4500 0.4550 0.4700 0.5072 0.5352 0.5945 0.6459 0.7169 23 0.3263 0.3565 0.4078 0.4500 0.4695 0.4964 0.5403 0.5828 0.6523 0.7125 0.7845 24 0.3140 0.3146 0.3911 0.4500 0.4884 0.5272 0.5785 0.6356 0.7154 0.7854 0.8600 25 0.3102 0.2900 0.3880 0.4500 0.5100 0.5600 0.6200 0.6900 0.7800 0.8600 0.9400 26 0.3064 0.2901 0.3875 0.4592 0.5306 0.5911 0.6624 0.7428 0.8417 0.9306 1.0178 27 0.3073 0.2901 0.3908 0.4683 0.5512 0.6222 0.7068 0.7964 0.9030 1.0003 1.0959 28 0.3082 0.3075 0.4050 0.4841 0.5776 0.6586 0.7571 0.8556 0.9706 1.0777 1.1841 29 0.3091 0.3346 0.4304 0.5126 0.6153 0.7061 0.8169 0.9252 1.0507 1.1714 1.2922 30 0.3100 0.3700 0.4700 0.5600 0.6700 0.7700 0.8900 1.0100 1.1500 1.2900 1.4300 31 0.3413 0.4142 0.5268 0.6320 0.7466 0.8563 0.9794 1.1116 1.2682 1.4294 1.5888 32 0.3826 0.4683 0.5988 0.7244 0.8413 0.9614 1.0827 1.2268 1.4011 1.5839 1.7620 33 0.4343 0.5313 0.6815 0.8288 0.9467 1.0762 1.1953 1.3532 1.5489 1.7597 1.9628 34 0.4966 0.6022 0.7701 0.9368 1.0554 1.1921 1.3126 1.4884 1.7118 1.9630 2.2044 35 0.5700 0.6800 0.8600 1.0400 1.1600 1.3000 1.4300 1.6300 1.8900 2.2000 2.5000 36 0.6608 0.7693 0.9517 1.1333 1.2494 1.3802 1.5254 1.7551 2.0639 2.4631 2.8558 37 0.7688 0.8706 1.0482 1.2222 1.3285 1.4385 1.6017 1.8654 2.2334 2.7482 3.2631 38 0.8844 0.9774 1.1490 1.3146 1.4139 1.5047 1.6923 1.9950 2.4278 3.0666 3.7125 39 0.9980 1.0827 1.2531 1.4179 1.5222 1.6086 1.8306 2.1785 2.6769 3.4301 4.1946 40 1.1000 1.1800 1.3600 1.5400 1.6700 1.7800 2.0500 2.4500 3.0100 3.8500 4.7000 41 1.1874 1.2654 1.4637 1.6766 1.8598 2.0310 2.3709 2.8360 3.4562 4.3517 5.2467 42 1.2665 1.3433 1.5646 1.8227 2.0805 2.3417 2.7710 3.3136 3.9957 4.9274 5.8410 43 1.3419 1.4195 1.6718 1.9845 2.3283 2.6939 3.2198 3.8432 4.5851 5.5394 6.4558 44 1.4182 1.4998 1.7939 2.1682 2.5994 3.0694 3.6863 4.3852 5.1810 6.1495 7.0645 45 1.5000 1.5900 1.9400 2.3800 2.8900 3.4500 4.1400 4.9000 5.7400 6.7200 7.6400 46 1.5830 1.6858 2.1095 2.6243 3.2136 3.8585 4.6082 5.4142 6.2854 7.2642 8.1896 47 1.6643 1.7835 2.2966 2.8970 3.5728 4.3070 5.1113 5.9541 6.8461 7.8075 8.7312 48 1.7501 1.8893 2.5018 3.1914 3.9472 4.7614 5.6083 6.4799 7.3871 8.3297 9.2540 49 1.8466 2.0094 2.7261 3.5013 4.3164 5.1871 6.0582 6.9518 7.8734 8.8106 9.7472 50 1.9600 2.1500 2.9700 3.8200 4.6600 5.5500 6.4200 7.3300 8.2700 9.2300 10.2000 51 2.1029 2.3258 3.2413 4.1447 4.9580 5.8103 6.6376 7.5531 8.5154 9.5403 10.5772 52 2.2710 2.5325 3.5394 4.4798 5.2240 5.9910 6.7384 7.6478 8.6329 9.7550 10.8860 53 2.4458 2.7483 3.8530 4.8294 5.4880 6.1514 6.8064 7.7058 8.7147 9.9454 11.1792 54 2.6083 2.9514 4.1703 5.1981 5.7800 6.3513 6.9256 7.8193 8.8530 10.1833 11.5096 55 2.7400 3.1200 4.4800 5.5900 6.1300 6.6500 7.1800 8.0800 9.1400 10.5400 11.9300 56 2.8147 3.2234 4.7682 6.0041 6.5398 7.0538 7.5803 8.4867 9.5546 10.9626 12.3454 57 2.8450 3.2763 5.0427 6.4374 6.9893 7.5231 8.0706 8.9782 10.0355 11.4035 12.7205 58 2.8698 3.3245 5.3241 6.8918 7.4759 8.0485 8.6346 9.5562 10.6141 11.9421 13.1979 59 2.9285 3.4138 5.6330 7.3687 7.9970 8.6206 9.2565 10.2229 11.3218 12.6578 13.9202 60 3.0600 3.5900 5.9900 7.8700 8.5500 9.2300 9.9200 10.9800 12.1900 13.6300 15.0300 61 3.2796 3.8639 6.3984 8.3956 9.1399 9.8891 10.6378 11.8511 13.2569 14.9126 16.6053 62 3.5612 4.2050 6.8444 8.9444 9.7686 10.6042 11.4207 12.8350 14.5014 16.4525 18.5510 63 3.8820 4.5970 7.3232 9.5164 10.4282 11.3566 12.2497 13.8962 15.8666 18.1691 20.7502 64 4.2192 5.0241 7.8300 10.1116 11.1113 12.1281 13.1058 14.9997 17.2951 19.9818 23.0855 65 4.5500 5.4700 8.3600 10.7300 11.8100 12.9000 13.9700 16.1100 18.7300 21.8100 25.4400 66 4.8546 5.9038 8.8945 11.3492 12.4673 13.5745 14.7024 17.0704 20.0091 23.4914 27.6858 67 5.1481 6.3361 9.4366 11.9692 13.0882 14.1638 15.3156 17.9044 21.1706 25.0797 29.9009 68 5.4603 6.8135 10.0146 12.6236 13.7586 14.8150 16.0196 18.8472 22.4574 26.8183 32.2771 69 5.8210 7.3826 10.6563 13.3460 14.5639 15.6747 17.0244 20.1340 24.1129 28.9506 35.0062 70 6.2600 8.0900 11.3900 14.1700 15.5900 16.8900 18.5400 22.0000 26.3800 31.7200 38.2800 71 6.7749 8.9229 12.2117 15.0941 16.8387 18.4608 20.5494 24.4174 29.2222 35.0770 42.0390 72 7.3458 9.8504 13.1027 16.0959 18.2528 20.2892 22.9126 27.2293 32.4774 38.8595 46.1554 73 7.9763 10.8914 14.0689 17.1777 19.8296 22.3751 25.6552 30.4775 36.2006 43.1415 50.7182 74 8.6699 12.0649 15.1160 18.3416 21.5663 24.7187 28.8025 34.2038 40.4465 47.9970 55.8167 75 9.4300 13.3900 16.2500 19.5900 23.4600 27.3200 32.3800 38.4500 45.2700 53.5000 61.5400 76 10.3851 15.1444 17.6367 21.0886 25.8286 30.6942 37.2143 44.2000 51.7533 60.8470 69.0187 77 11.3401 16.8989 19.0235 22.5873 28.1971 34.0683 42.0486 49.9500 58.2366 68.1939 76.4974 78 12.2952 18.6533 20.4102 24.0859 30.5657 37.4425 46.8829 55.7001 64.7200 75.5409 83.9761 79 13.2502 20.4078 21.7970 25.5845 32.9343 40.8166 51.7172 61.4501 71.2033 82.8879 91.4547 80 14.2053 22.1622 23.1837 27.0831 35.3029 44.1908 56.5515 67.2001 77.6866 90.2349 98.9334 Duration/Issue Attained Age 11 12 13 14 Ultimate Age 0 0.4297 0.4858 0.5418 0.6353 0.7100 15 1 0.4152 0.4663 0.5174 0.6026 0.7100 16 2 0.4709 0.5098 0.5488 0.6139 0.7100 17 3 0.5618 0.5854 0.6092 0.6489 0.7100 18 4 0.6530 0.6624 0.6718 0.6876 0.7100 19 5 0.7094 0.7098 0.7098 0.7100 0.7100 20 6 0.7084 0.7098 0.7098 0.7100 0.7100 21 7 0.7074 0.7097 0.7098 0.7100 0.7100 22 8 0.7064 0.7096 0.7098 0.7100 0.7100 23 9 0.7053 0.7096 0.7098 0.7100 0.7100 24 10 0.7027 0.7095 0.7099 0.7100 0.7100 25 11 0.6984 0.7088 0.7088 0.7100 0.7100 26 12 0.6925 0.7080 0.7079 0.7100 0.7100 27 13 0.6850 0.7060 0.7058 0.7100 0.7100 28 14 0.6758 0.7027 0.7025 0.7100 0.7100 29 15 0.6724 0.7057 0.7060 0.7100 0.7100 30 16 0.6673 0.7074 0.7085 0.7285 0.7100 31 17 0.6680 0.7155 0.7179 0.7502 0.7400 32 18 0.6687 0.7236 0.7352 0.7818 0.8200 33 19 0.6694 0.7318 0.7669 0.8295 0.9000 34 20 0.6700 0.7400 0.8200 0.9000 1.0000 35 21 0.7212 0.8020 0.8969 0.9951 1.1200 36 22 0.7919 0.8842 0.9929 1.1106 1.2600 37 23 0.8761 0.9815 1.1044 1.2434 1.4000 38 24 0.9675 1.0885 1.2280 1.3909 1.5600 39 25 1.0600 1.2000 1.3600 1.5500 1.7400 40 26 1.1440 1.3075 1.4930 1.7152 1.9400 41 27 1.2236 1.4146 1.6295 1.8884 2.1600 42 28 1.3132 1.5338 1.7805 2.0780 2.4000 43 29 1.4272 1.6781 1.9570 2.2924 2.6600 44 30 1.5800 1.8600 2.1700 2.5400 2.9500 45 31 1.7649 2.0730 2.4132 2.8136 3.2600 46 32 1.9722 2.3087 2.6792 3.1076 3.6000 47 33 2.2122 2.5769 2.9776 3.4328 3.9600 48 34 2.4947 2.8874 3.3180 3.8000 4.3400 49 35 2.8300 3.2500 3.7100 4.2200 4.7600 50 36 3.2239 3.6691 4.1566 4.6954 5.2300 51 37 3.6698 4.1382 4.6515 5.2189 5.7800 52 38 4.1586 4.6506 5.1901 5.7867 6.3800 53 39 4.6817 5.2001 5.7678 6.3950 7.0400 54 40 5.2300 5.7800 6.3800 7.0400 7.7500 55 41 5.8228 6.4088 7.0434 7.7354 8.4800 56 42 6.4660 7.0908 7.7611 8.4837 9.2300 57 43 7.1308 7.7984 8.5081 9.2643 10.0300 58 44 7.7884 8.5040 9.2594 10.0566 10.8600 59 45 8.4100 9.1800 9.9900 10.8400 11.7000 60 46 8.9985 9.8330 10.7120 11.6330 12.5600 61 47 9.5730 10.4813 11.4420 12.4493 13.4500 62 48 10.1294 11.1151 12.1620 13.2611 14.3700 63 49 10.6631 11.7246 12.8540 14.0406 15.3200 64 50 11.1700 12.3000 13.5000 14.7600 16.2500 65 51 11.6210 12.7986 14.0342 15.3235 17.1000 66 52 12.0191 13.2271 14.4687 15.7498 17.7600 67 53 12.4077 13.6493 14.9021 16.1822 18.1300 68 54 12.8302 14.1290 15.4330 16.7645 18.3900 69 55 13.3300 14.7300 16.1600 17.6400 18.8400 70 56 13.7763 15.3190 16.9651 18.7184 19.7800 71 57 14.1402 15.8533 17.7826 19.9040 21.4100 72 58 14.6178 16.5331 18.7894 21.3324 23.6300 73 59 15.4057 17.5586 20.1629 23.1392 26.3000 74 60 16.7000 19.1300 22.0800 25.4600 29.3800 75 61 18.6034 21.3350 24.5971 28.3007 32.8100 76 62 20.9849 24.0403 27.5962 31.5710 36.5200 77 63 23.6907 27.1141 30.9926 35.2618 40.4800 78 64 26.5670 30.4246 34.7021 39.3645 44.7900 79 65 29.4600 33.8400 38.6400 43.8700 49.5500 80 66 32.2738 37.2582 42.6451 48.6008 54.9100 81 67 35.1109 40.7669 46.7738 53.5628 60.9100 82 68 38.1151 44.5195 51.2678 59.0224 67.4300 83 69 41.4302 48.6694 56.3693 65.2460 74.5100 84 70 45.2000 53.3700 62.3200 72.5000 83.4300 85 71 49.3518 58.5173 68.9661 80.8844 94.8400 86 72 53.7898 64.0090 76.1464 90.2217 107.6400 87 73 58.6228 70.0011 84.0916 100.3617 120.9800 88 74 63.9599 76.6495 93.0326 111.1545 133.9800 89 75 69.9100 84.1100 103.2000 122.4500 146.0000 90 76 177.5537 93.7991 116.7392 135.4536 157.1000 91 77 185.1974 103.4882 130.2784 148.4572 167.8500 92 78 192.8411 113.1774 143.8176 161.4608 178.8700 93 79 100.4848 122.8665 157.3568 174.4644 190.7500 94 80 108.1285 132.5556 170.8960 187.4680 204.0400 95 218.5000 96 233.5000 97 249.0400 98 265.1200 99 296.3000 100 363.2100 101 468.3200 102 613.2600 103 796.7400 104 1,000.0000 105 1,000.0000 106 1,000.0000 107 1,000.0000 108 1,000.0000 109 1,000.0000 110 1,000.0000 111 1,000.0000 112 1,000.0000 113 1,000.0000 114 1,000.0000 115 1,000.0000 116 1,000.0000 117 1,000.0000 118 1,000.0000 119
SCHEDULE E YRT PREMIUM RATE SCHEDULE CONTINENTAL ASSURANCE COMPANY - SMOKER/NONSMOKER YRT RATES PER $1,000 EFFECTIVE JANUARY 1, 1982 CESSION FEE ----------- AUTOMATIC AGREEMENT -0- FACULTATIVE AGREEMENTS - $15.00/YEAR FEMALE RATES ------------ AGES: 0 - 10 SAME AS MALE RATES 11 - 15 MALE AGE 10 RATE 16 - UP RATE FOR MALE 5 YEARS YOUNGER REINSURANCE PREMIUM ADJUSTMENTS FOR CERTAIN CLASSES OF LIFE INSURANCE: ISSUED ON CONVERSION OF TERM INSURANCE: PREMIUMS WILL BE CONTINUED BASED ON ISSUE AGE AND POLICY DATE OF THE ORIGINAL TERM INSURANCE. ISSUED ON ELECTION OF GUARANTEED INSURABILITY OPTION: AN ADDITIONAL, NON-REFUNDABLE NET SINGLE PREMIUM WILL BE CHARGED. ISSUED ABOVE AGE 30 WITHOUT MEDICAL EXAMINATION: BASIC RATES WILL BE INCREASED AS STIPULATED IN THE REINSURANCE AGREEMENT. ISSUED WITHOUT EVIDENCE OF INSURABILITY ("GUARANTEED ISSUE") - INDIVIDUAL CONSIDERATION. ISSUED ON CONVERSION OF GROUP INSURANCE - INDIVIDUAL CONSIDERATION. CONTINENTAL ASSURANCE COMPANY - AGGREGATE YRT RATES PER $1,000 EFFECTIVE JANUARY 1, 1982 CESSION FEE ----------- AUTOMATIC AGREEMENT -0- FACULTATIVE AGREEMENTS - $10.00/YEAR FEMALE RATES ------------ AGES: 0 - 10 SAME AS MALE RATES 11 - 15 MALE AGE 10 RATE 16 - UP RATE FOR MALE 5 YEARS YOUNGER REINSURANCE PREMIUM ADJUSTMENTS FOR CERTAIN CLASSES OF LIFE INSURANCE: ISSUED ON CONVERSION OF TERM INSURANCE: PREMIUMS WILL BE CONTINUED BASED ON ISSUE AGE AND POLICY DATE OF THE ORIGINAL TERM INSURANCE. ISSUED ON ELECTION OF GUARANTEED INSURABILITY OPTION: AN ADDITIONAL, NON-REFUNDABLE NET SINGLE PREMIUM WILL BE CHARGED. ISSUED ABOVE AGE 30 WITHOUT MEDICAL EXAMINATION: BASIC RATES WILL BE INCREASED AS STIPULATED II THE REINSURANCE AGREEMENT. ISSUED WITHOUT EVIDENCE OF INSURABILITY ("GUARANTEED ISSUE") - INDIVIDUAL CONSIDERATION. ISSUED ON CONVERSION OF GROUP INSURANCE - INDIVIDUAL CONSIDERATION. *** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 0 2.83 0.97 0.90 0.88 0.83 0.81 0.78 0.74 0.69 0.66 0.69 10 1 0.95 0.90 0.88 0.83 0.81 0.78 0.74 0.69 0.66 0.69 0.74 11 2 0.85 0.85 0.83 0.78 0.76 0.74 0.69 0.66 0.69 0.74 0.78 12 3 0.83 0.78 0.76 0.71 0.69 0.69 0.66 0.69 0.74 0.78 0.81 13 4 0.76 0.71 0.66 0.64 0.66 0.66 0.69 0.74 0.78 0.81 0.91 14 5 0.64 0.64 0.62 0.64 0.66 0.69 0.74 0.78 0.81 0.90 1.07 15 6 0.55 0.59 0.62 0.66 0.69 0.74 0.78 0.81 0.90 1.07 1.23 16 7 0.50 0.57 0.62 0.69 0.74 0.78 0.81 0.90 1.07 1.23 1.38 17 8 0.48 0.57 0.66 0.74 0.78 0.81 0.90 1.07 1.23 1.38 1.47 18 9 0.50 0.62 0.74 0.78 0.81 0.90 1.07 1.23 1.38 1.47 1.57 19 10 0.52 0.69 0.78 0.81 0.90 1.07 1.23 1.38 1.47 1.57 1.57 20 11 0.55 0.74 0.81 0.90 1.07 1.23 1.38 1.47 1.57 1.57 1.50 21 12 0.62 0.78 0.90 1.07 1.23 1.38 1.47 1.57 1.57 1.50 1.45 22 13 0.71 0.88 1.07 1.23 1.38 1.47 1.57 1.57 1.50 1.45 1.42 23 14 0.83 1.02 1.23 1.38 1.47 1.57 1.57 1.50 1.45 1.42 1.40 24 15 0.95 1.16 1.38 1.47 1.57 1.57 1.50 1.45 1.42 1.40 1.35 25 16 1.02 1.33 1.47 1.57 1.57 1.50 1.45 1.42 1.40 1.35 1.35 26 17 1.04 1.42 1.54 1.57 1.50 1.45 1.42 1.40 1.35 1.35 1.40 27 18 1.02 1.42 1.52 1.50 1.45 1.42 1.40 1.35 1.35 1.40 1.45 28 19 0.97 1.38 1.45 1.45 1.40 1.40 1.35 1.35 1.40 1.45 1.52 29 20 0.93 1.28 1.33 1.35 1.33 1.35 1.35 1.40 1.45 1.52 1.61 30 21 0.83 1.19 1.19 1.23 1.26 1.33 1.40 1.45 1.52 1.61 1.71 31 22 0.83 1.12 1.12 1.16 1.21 1.33 1.42 1.47 1.59 1.69 1.78 32 23 0.81 1.09 1.09 1.14 1.19 1.33 1.42 1.50 1.61 1.73 1.83 33 24 0.78 1.07 1.09 1.14 1.19 1.33 1.42 1.52 1.64 1.76 1.88 34 25 0.74 1.02 1.09 1.14 1.21 1.33 1.42 1.54 1.69 1.80 1.95 35 26 0.69 1.00 1.09 1.14 1.23 1.35 1.45 1.59 1.73 1.90 2.04 36 27 0.66 1.00 1.09 1.14 1.26 1.40 1.50 1.66 1.80 2.02 2.18 37 28 0.66 1.00 1.09 1.14 1.28 1.42 1.57 1.73 1.92 2.16 2.37 38 29 0.66 1.00 l.09 1.14 1.28 1.45 1.66 1.83 2.07 2.30 2.59 39 30 0.69 1.00 l.09 1.16 1.35 1.54 1.76 1.99 2.23 2.49 2.83 40 31 0.71 1.02 1.12 1.26 1.47 1.69 1.90 2.16 2.42 2.73 3.09 41 32 0.71 1.09 1.19 l.40 1.59 1.85 2.09 2.35 2.66 2.99 3.40 42 33 0.74 1.16 1.31 1.52 1.76 2.04 2.30 2.61 2.94 3.30 3.73 43 34 0.78 1.23 1.42 1.64 1.92 2.23 2.54 2.90 3.23 3.63 4.08 44 35 0.83 1.31 1.34 1.73 2.09 2.42 2.75 3.16 3.54 3.99 4.46 45 36 0.88 1.38 1.66 1.92 2.26 2.61 2.97 3.42 3.87 4.37 4.89 46 37 0.95 1.47 1.76 2.07 2.40 2.78 3.18 3.68 4.20 4.77 5.37 47 38 1.02 1.54 1.85 2.18 2.54 2.92 3.40 3.94 4.56 5.20 5.89 48 39 1.12 1.61 1.92 2.30 2.68 3.06 3.61 4.20 4.94 5.65 6.44 49 40 1.23 1.71 2.02 2.45 2.83 3.21 3.82 4.46 5.32 6.15 7.01 50 4l 1.33 1.80 2.16 2.61 3.02 3.40 4.11 4.80 5.75 6.70 7.65 51 42 1.42 1.92 2.33 2.83 3.28 3.68 4.46 5.20 6.25 7.27 8.34 52 43 1.54 2.09 2.54 3.09 3.59 4.01 4.89 5.68 6.77 7.86 9.02 53 44 1.69 2.28 2.80 3.40 3.94 4.39 5.37 6.22 7.31 8.50 9.74 54
*** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 45 1.80 2.47 3.09 3.73 4.32 4.82 5.87 6.82 7.93 9.19 10.54 55 46 1.90 2.66 3.37 4.06 4.70 5.25 6.39 7.43 8.62 9.95 11.45 56 47 1.97 2.85 3.66 4.39 5.08 5.68 6.91 8.07 9.38 10.81 12.42 57 48 2.02 3.04 3.94 4.73 5.46 6.10 7.46 8.74 10.19 11.76 13.47 58 49 2.07 3.23 4.23 5.08 5.87 6.53 8.03 9.43 11.04 12.80 14.61 59 50 2.11 3.44 4.51 5.46 6.29 7.01 8.64 10.19 11.99 13.92 15.84 60 51 2.18 3.68 4.82 5.84 6.75 7.53 9.31 11.02 13.04 15.13 17.22 61 52 2.30 3.92 5.15 6.22 7.22 8.05 9.97 11.92 14.15 16.43 18.71 62 53 2.49 4.13 5.49 6.63 7.67 8.57 10.66 12.87 15.32 17.79 20.26 63 54 2.73 4.37 5.82 7.05 8.12 9.14 11.40 13.87 16.55 19.21 21.90 64 55 2.97 4.66 6.20 7.53 8.67 9.83 12.23 15.01 17.91 20.78 23.70 65 56 3.23 5.01 6.67 8.10 9.36 10.71 13.28 16.34 19.43 22.54 25.77 66 57 3.51 5.51 7.24 8.81 10.24 11.88 14.63 17.88 21.16 24.49 28.14 67 58 3.82 6.10 7.93 9.69 11.35 13.35 16.29 19.64 23.08 26.62 30.78 68 59 4.16 6.79 8.72 10.66 12.63 15.03 18.17 21.59 25.20 28.95 33.65 69 60 4.51 7.55 9.52 11.68 13.96 16.81 20.14 23.65 27.48 31.49 36.76 70 61 4.92 8.29 10.33 12.71 15.27 18.55 22.11 25.79 29.88 34.25 40.16 71 62 5.37 8.95 11.07 13.58 16.39 20.02 23.89 27.86 32.28 37.07 43.75 72 63 5.87 9.55 11.66 14.27 17.24 21.16 25.36 29.69 34.53 39.85 47.33 73 64 6.39 10.12 12.23 14.91 18.03 22.23 26.77 31.54 36.88 42.77 51.11 74 65 7.01 10.81 12.99 15.77 19.07 23.61 28.55 33.84 39.73 46.24 55.48 75 66 7.79 11.78 14.13 17.15 20.76 25.67 31.11 36.98 43.51 50.73 60.80 76 67 8.74 13.11 15.79 19.24 23.82 28.74 34.75 41.30 48.59 56.62 67.40 77 68 9.90 14.77 17.98 21.99 26.72 32.73 39.45 46.79 54.93 63.89 75.29 78 69 11.21 16.70 20.54 25.22 30.73 37.41 44.91 53.10 62.20 72.15 84.10 79 70 12.59 18.83 23.35 28.79 35.13 42.51 50.82 59.92 69.99 80.96 93.46 80 71 14.01 21.07 26.29 32.49 39.64 47.76 56.90 66.90 77.90 89.87 102.98 81 72 15.39 23.25 29.21 36.15 44.08 52.96 62.89 73.79 85.67 98.56 112.43 82 73 16.74 25.53 32.18 39.88 48.57 58.23 68.95 80.70 93.46 107.21 121.88 83 74 18.17 28.02 35.39 43.84 53.34 63.79 75.34 87.90 101.48 116.09 131.50 84 75 19.74 30.66 38.85 48.09 58.38 69.63 82.01 95.38 109.77 125.23 141.41 85 76 21.45 33.51 42.56 52.61 63.70 75.81 88.97 103.15 118.37 134.64 151.74 86 77 23.05 36.57 46.48 57.38 69.35 82.29 96.26 111.22 127.25 144.28 161.86 87 78 25.15 39.80 50.66 62.44 75.26 89.04 103.81 119.58 136.37 154.16 171.00 88 79 27.63 43.00 55.37 67.87 81.45 96.04 111.61 128.31 145.31 163.30 180.14 89 80 30.71 48.15 60.46 73.57 87.88 103.27 119.76 136.87 153.52 172.03 191.42 90 81 33.83 52.57 65.54 79.38 94.50 110.82 127.75 144.60 161.73 182.81 206.96 91 82 36.94 56.99 70.71 85.36 101.41 118.20 134.97 152.33 171.85 197.64 227.76 92 83 40.05 61.49 76.04 91.59 108.17 124.88 142.18 161.87 185.80 217.51 253.17 93 84 43.21 66.12 81.59 97.70 114.28 131.56 151.09 175.00 204.48 241.78 282.43 94 85 47.73 72.88 89.39 106.00 123.64 143.60 167.83 197.93 233.60 277.21 315.59 95 86 52.48 79.67 96.79 114.46 134.66 159.10 189.23 225.35 266.90 317.24 352.64 96 87 55.98 84.17 101.96 121.63 145.59 175.09 210.34 251.40 298.24 354.49 393.56 97 88 59.14 88.67 108.35 131.50 160.22 194.63 234.65 280.91 333.25 395.62 438.38 98 89 62.30 94.22 117.14 144.72 178.10 217.12 262.20 313.89 371.92 440.67 490.61 99
*** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 0 0.64 0.22 0.20 0.20 0.19 0.18 0.18 0.17 0.15 0.15 0.15 10 1 0.21 0.20 0.20 0.19 0.18 0.18 0.17 0.15 0.15 0.15 0.17 11 2 0.19 0.19 0.19 0.18 0.17 0.17 0.15 0.15 0.15 0.17 0.18 12 3 0.19 0.18 0.17 0.16 0.15 0.15 0.15 0.15 0.17 0.18 0.18 13 4 0.17 0.16 0.15 0.14 0.15 0.15 0.15 0.17 0.18 0.18 0.20 14 5 0.14 0.14 0.14 0.14 0.15 0.15 0.17 0.18 0.18 0.20 0.24 15 6 0.12 0.13 0.14 0.13 0.15 0.17 0.18 0.18 0.20 0.24 0.28 16 7 0.11 0.13 0.14 0.15 0.17 0.18 0.18 0.20 0.24 0.28 0.31 17 8 0.11 0.13 0.15 0.17 0.18 0.18 0.20 0.24 0.28 0.31 0.33 18 9 0.11 0.14 0.17 0.18 0.18 0.20 0.24 0.28 0.31 0.33 0.35 19 10 0.12 0.15 0.18 0.18 0.20 0.24 0.28 0.31 0.33 0.35 0.35 20 11 0.12 0.17 0.18 0.20 0.24 0.28 0.31 0.33 0.35 0.35 0.34 21 12 0.14 0.18 0.20 0.24 0.28 0.31 0.33 0.35 0.35 0.34 0.33 22 13 0.16 0.20 0.24 0.28 0.31 0.33 0.35 0.35 0.34 0.33 0.32 23 14 0.19 0.23 0.28 0.31 0.33 0.35 0.35 0.34 0.33 0.32 0.32 24 15 0.21 0.26 0.31 0.33 0.35 0.35 0.34 0.33 0.32 0.32 0.30 25 16 0.23 0.30 0.33 0.35 0.35 0.34 0.33 0.32 0.32 0.30 0.30 26 17 0.24 0.32 0.35 0.35 0.34 0.33 0.32 0.32 0.30 0.30 0.32 27 18 0.23 0.32 0.34 0.34 0.33 0.32 0.32 0.30 0.30 0.32 0.33 28 19 0.22 0.31 0.33 0.33 0.32 0.32 0.30 0.30 0.32 0.33 0.34 29 20 0.21 0.29 0.30 0.30 0.30 0.30 0.30 0.32 0.33 0.34 0.36 30 21 0.20 0.27 0.27 0.28 0.28 0.30 0.32 0.33 0.34 0.36 0.38 31 22 0.19 0.25 0.25 0.26 0.27 0.30 0.32 0.33 0.36 0.38 0.40 32 23 0.18 0.25 0.25 0.26 0.27 0.30 0.32 0.34 0.36 0.39 0.41 33 24 0.18 0.24 0.25 0.26 0.27 0.30 0.32 0.34 0.37 0.40 0.42 34 25 0.17 0.23 0.25 0.26 0.27 0.30 0.32 0.35 0.38 0.41 0.44 35 26 0.15 0.22 0.25 0.26 0.28 0.30 0.33 0.36 0.39 0.43 0.46 36 27 0.15 0.22 0.25 0.26 0.28 0.32 0.34 0.37 0.41 0.45 0.49 37 28 0.15 0.22 0.25 0.26 0.29 0.32 0.35 0.39 0.43 0.49 0.53 38 29 0.15 0.22 0.25 0.26 0.29 0.33 0.37 0.41 0.46 0.52 0.58 39 30 0.15 0.22 0.25 0.26 0.30 0.35 0.40 0.45 0.50 0.56 0.64 40 31 0.16 0.23 0.25 0.28 0.33 0.38 0.43 0.49 0.55 0.61 0.69 41 32 0.16 0.25 0.27 0.32 0.36 0.42 0.47 0.53 0.60 0.67 0.76 42 33 0.17 0.26 0.29 0.34 0.40 0.46 0.52 0.59 0.66 0.74 0.84 43 34 0.18 0.28 0.32 0.37 0.43 0.50 0.57 0.65 0.73 0.82 0.92 44 35 0.19 0.29 0.35 0.40 0.47 0.55 0.62 0.71 0.80 0.90 1.00 45 36 0.20 0.31 0.37 0.43 0.51 0.59 0.67 0.77 0.87 0.98 1.10 46 37 0.21 0.33 0.40 0.46 0.54 0.63 0.72 0.83 0.95 1.07 1.21 47 38 0.23 0.35 0.42 0.49 0.57 0.66 0.76 0.89 1.03 1.17 1.33 48 39 0.25 0.36 0.43 0.52 0.60 0.69 0.81 0.95 1.11 1.27 1.45 49 40 0.28 0.38 0.45 0.55 0.64 0.72 0.86 1.00 1.20 1.38 1.58 50 41 0.30 0.41 0.49 0.59 0.68 0.76 0.92 1.08 1.29 1.51 1.72 51 42 0.32 0.43 0.52 0.64 0.74 0.83 1.00 1.17 1.41 1.64 1.88 52 43 0.35 0.47 0.57 0.69 0.81 0.90 1.10 1.28 1.52 1.77 2.03 53 44 0.38 0.51 0.63 0.76 0.89 0.99 1.21 1.40 1.65 1.91 2.19 54
*** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 45 0.41 0.56 0.69 0.84 0.97 1.08 1.32 1.53 1.78 2.07 2.37 55 46 0.43 0.60 0.76 0.91 1.06 1.18 1.44 1.67 1.94 2.24 2.58 56 47 0.44 0.64 0.82 0.99 1.14 1.28 1.56 1.82 2.11 2.43 2.79 57 48 0.45 0.68 0.89 1.06 1.23 1.37 1.68 1.97 2.29 2.65 3.03 58 49 0.46 0.73 0.95 1.14 1.32 1.47 1.81 2.12 2.48 2.88 3.29 59 50 0.43 0.77 1.02 1.23 1.42 1.58 1.95 2.29 2.70 3.13 3.56 60 51 0.49 0.83 1.08 1.31 1.52 1.69 2.09 2.48 2.93 3.40 3.87 61 52 0.52 0.88 1.16 1.40 1.62 1.81 2.24 2.68 3.18 3.70 4.21 62 53 0.56 0.93 1.23 1.49 1.73 1.93 2.40 2.90 3.45 4.00 4.56 63 54 0.61 0.98 1.31 1.59 1.83 2.06 2.57 3.12 3.72 4.32 4.93 64 55 0.67 1.05 1.39 1.69 1.95 2.21 2.75 3.38 4.03 4.68 5.33 65 56 0.73 1.13 1.50 1.82 2.11 2.41 2.99 3.68 4.37 5.07 5.80 66 57 0.79 1.24 1.63 1.98 2.30 2.67 3.29 4.02 4.76 5.51 6.33 67 58 0.86 1.37 1.78 2.18 2.55 3.00 3.67 4.42 5.19 5.99 6.93 68 59 0.94 1.53 1.96 2.40 2.84 3.38 4.09 4.86 5.67 6.51 7.57 69 60 1.02 1.70 2.14 2.63 3.14 3.78 4.53 5.32 6.18 7.09 8.27 70 61 1.11 1.86 2.32 2.86 3.44 4.17 4.98 5.80 6.72 7.71 9.04 71 62 1.21 2.01 2.49 3.06 3.69 4.50 5.38 6.27 7.26 8.34 9.84 72 63 1.32 2.15 2.62 3.21 3.88 4.76 5.71 6.68 7.77 8.97 10.65 73 64 1.44 2.28 2.75 3.36 4.06 5.00 6.02 7.10 8.30 9.62 11.50 74 65 1.58 2.43 2.92 3.55 4.29 5.31 6.42 7.61 8.94 10.40 12.48 75 66 1.75 2.65 3.18 3.86 4.67 5.78 7.00 8.32 9.79 11.41 13.68 76 67 1.97 2.95 3.55 4.33 5.25 6.47 7.82 9.29 10.93 12.74 15.17 77 68 2.23 3.32 4.05 4.95 6.01 7.36 8.88 10.53 12.36 14.37 16.94 78 69 2.52 3.76 4.62 5.68 6.91 8.42 10.11 11.95 14.00 16.23 18.92 79 70 2.83 4.24 5.25 6.48 7.90 9.57 11.44 13.48 15.75 18.22 21.03 80 71 3.15 4.74 5.92 7.31 8.92 10.75 12.80 15.03 17.53 20.22 23.17 81 72 3.46 5.23 6.57 8.13 9.92 11.92 14.15 16.60 19.27 22.18 25.30 82 73 3.77 5.74 7.24 8.97 10.93 13.10 15.51 18.16 21.03 24.12 27.42 83 74 4.09 6.31 7.96 9.86 12.00 14.35 16.95 19.78 22.83 26.12 29.59 84 75 4.44 6.90 8.74 10.82 13.13 15.67 18.45 21.46 24.70 28.18 31.82 85 76 4.83 7.54 9.58 11.84 14.33 17.06 20.02 23.21 26.63 30.29 34.14 86 77 5.23 8.23 10.46 12.91 15.60 18.52 21.66 25.02 28.63 32.46 36.42 87 78 5.66 8.96 11.40 14.05 16.93 20.03 23.36 26.91 30.68 34.69 38.48 88 79 6.22 9.83 12.46 15.27 18.33 21.61 25.11 28.87 32.69 36.74 40.53 89 80 6.91 10.83 13.60 16.55 19.77 23.24 26.95 30.79 34.54 38.71 43.07 90 81 7.61 11.83 14.75 17.86 21.26 24.93 28.74 32.53 36.39 41.13 46.57 91 82 8.31 12.82 15.91 19.21 22.82 26.60 30.37 34.27 38.67 44.47 51.25 92 83 9.01 13.84 17.11 20.61 24.34 28.10 31.99 36.42 41.80 48.94 56.96 93 84 9.72 14.88 18.36 21.98 25.71 29.60 33.99 39.38 46.01 54.40 63.55 94 85 10.74 16.40 20.11 23.85 27.82 32.31 37.76 44.53 52.56 62.37 71.01 95 86 11.81 17.92 21.78 25.75 30.30 35.80 42.58 50.70 60.05 71.38 79.34 96 87 12.59 18.94 22.94 27.37 32.76 39.40 47.33 56.56 67.10 79.76 88.55 97 88 13.31 19.95 24.38 29.59 36.05 43.79 52.80 63.20 74.98 89.01 98.63 98 89 14.02 21.20 26.36 32.56 40.07 48.85 58.99 70.62 83.68 99.15 110.39 99
*** CONTINENTAL ASSURANCE COMPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 1.33 1.40 1.46 1.49 1.50 1.46 1.44 1.44 1.46 1.48 1.51 1.58 1.66 1.83 2.00 2.18 35 21 1.27 1.34 1.43 1.44 1.44 1.42 1.41 1.43 1.46 1.50 1.55 1.65 1.78 1.97 2.15 2.35 36 22 1.22 1.29 1.40 1.41 1.40 1.40 1.41 1.44 1.49 1.54 1.64 1.75 1.92 2.13 2.34 2.58 37 23 1.19 1.25 1.39 1.39 1.39 1.40 1.43 1.47 1.54 1.62 1.73 1.87 2.08 2.33 2.57 2.84 38 24 1.18 1.24 1.38 1.39 1.39 1.42 1.45 1.52 1.61 1.72 1.83 2.02 2.27 2.55 2.83 3.16 39 25 1.17 1.24 1.36 1.38 1.41 1.44 1.51 1.61 1.71 1.82 1.97 2.21 2.49 2.80 3.12 3.53 40 26 1.18 1.25 1.36 1.39 1.44 1.50 1.61 1.71 1.82 1.97 2.16 2.42 2.73 3.05 3.43 3.93 41 27 1.21 1.29 1.37 1.43 1.50 1.60 1.71 1.82 1.95 2.15 2.37 2.66 2.99 3.33 3.78 4.37 42 28 1.25 1.34 1.41 1.50 1.60 1.70 1.80 1.95 2.14 2.35 2.63 2.93 3.29 3.65 4.16 4.86 43 29 1.28 1.39 1.49 1.60 1.70 1.80 1.92 2.12 2.35 2.60 2.92 3.25 3.62 4.04 4.62 5.41 44 30 1.31 1.44 1.59 1.67 1.80 1.92 2.08 2.33 2.59 2.90 3.24 3.60 4.01 4.54 5.14 5.98 45 31 1.34 1.48 1.66 1.79 1.91 2.08 2.27 2.56 2.88 3.22 3.58 3.99 4.51 5.06 5.73 6.56 46 32 1.37 1.54 1.73 1.90 2.05 2.26 2.49 2.83 3.20 3.57 3.97 4.49 5.02 5.59 6.39 7.23 47 33 1.40 1.60 1.83 2.03 2.22 2.46 2.74 3.13 3.55 3.95 4.47 4.99 5.49 6.22 7.09 8.01 48 34 1.45 1.68 1.95 2.19 2.41 2.71 3.03 3.46 3.94 4.44 4.95 5.41 5.97 6.88 7.85 8.98 49 35 1.50 1.78 2.10 2.38 2.64 3.00 3.37 3.84 4.37 4.93 5.36 5.88 6.66 7.56 8.64 9.96 50 36 1.57 1.90 2.27 2.60 2.89 3.33 3.75 4.26 4.84 5.34 5.83 6.58 7.46 8.25 9.46 10.81 51 37 1.65 2.03 2.45 2.87 3.18 3.70 4.16 4.72 5.29 5.81 6.51 7.38 8.13 8.97 10.33 11.68 52 38 1.73 2.17 2.66 3.15 3.49 4.10 4.60 5.20 5.75 6.45 7.29 8.02 8.72 9.75 11.26 12.62 53 39 1.83 2.34 2.89 3.45 3.83 4.51 5.06 5.72 6.39 7.20 7.91 8.60 9.41 10.61 12.26 13.77 54 40 1.94 2.52 3.14 3.75 4.19 4.93 5.54 6.26 7.05 7.81 8.51 9.30 10.29 11.57 13.33 15.18 55 41 2.06 2.71 3.41 4.08 4.58 5.36 6.02 6.81 7.64 8.44 9.25 10.15 11.24 12.60 14.47 16.76 56 42 2.19 2.91 3.69 4.43 4.99 5.81 6.52 7.39 8.25 9.17 10.05 11.05 12.25 13.72 15.68 18.42 57 43 2.33 3.13 4.00 4.79 5.42 6.28 7.08 8.02 8.90 9.88 10.87 12.02 13.33 14.92 16.97 20.06 58 44 2.47 3.37 4.32 5.17 5.88 6.80 7.70 8.72 9.63 10.68 11.77 13.05 14.48 16.22 18.39 21.52 59 45 2.61 3.62 4.67 5.58 6.34 7.37 8.42 9.50 10.46 11.61 12.82 14.15 15.71 17.61 19.92 22.90 60 46 2.75 3.90 5.03 6.00 6.82 8.00 9.24 10.39 11.40 12.66 13.97 15.30 17.01 19.08 21.54 24.37 61 47 2.91 4.19 5.42 6.45 7.32 8.68 10.14 11.34 12.42 13.80 15.14 16.52 18.39 20.65 23.26 25.98 62 48 3.06 4.48 5.82 6.91 7.84 9.37 11.06 12.32 13.47 14.98 16.33 17.80 19.85 22.34 25.15 27.78 63 49 3.21 4.77 6.22 7.39 8.36 10.06 11.95 13.27 14.50 16.14 17.46 19.15 21.41 24.18 27.27 30.30 64 50 3.35 5.05 6.62 7.86 8.86 10.70 12.78 14.16 15.46 17.26 18.61 20.54 23.07 26.16 29.63 33.44 65 51 3.49 5.28 6.99 8.31 9.33 11.27 13.54 14.99 16.35 18.33 19.81 21.98 24.79 28.25 32.19 36.62 66 52 3.61 5.51 7.37 8.76 9.78 11.82 14.27 15.79 17.22 19.40 21.02 23.48 26.59 30.48 34.95 40.05 67 53 3.76 5.77 7.79 9.29 10.31 12.40 15.02 16.61 18.11 20.50 22.31 25.08 28.55 32.91 37.97 43.56 68 54 3.97 6.03 8.29 9.93 10.99 13.10 15.81 17.68 19.08 21.66 23.72 26.83 30.72 35.58 41.31 47.06 69
*** CONTINENTAL ASSURANCE COMPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 4.25 6.46 8.90 10.74 11.86 13.96 16.67 18.40 20.11 22.87 25.25 28.72 33.12 38.52 44.98 51.02 70 56 4.56 6.90 9.61 11.72 12.93 14.93 17.56 19.35 21.17 24.08 26.85 30.70 35.71 41.70 48.95 55.64 71 57 4.92 7.38 10.40 12.82 14.15 16.01 18.48 20.33 22.28 25.32 28.55 32.81 38.50 45.10 53.22 60.70 72 58 5.34 7.95 11.26 14.00 15.45 17.16 19.49 21.40 23.52 26.73 30.42 35.12 41.52 48.79 57.83 66.35 73 59 5.83 8.60 12.20 15.21 16.76 18.36 20.59 22.63 24.97 28.41 32.54 37.72 44.80 52.81 62.81 72.95 74 60 6.37 9.36 13.20 16.42 18.02 19.53 21.73 23.95 26.59 30.35 34.85 40.53 48.24 57.07 68.09 79.69 75 61 6.97 10.21 14.29 17.63 19.22 20.61 22.81 25.23 28.23 32.41 37.20 43.41 51.70 61.43 73.52 86.33 76 62 7.62 11.15 15.45 18.87 20.42 22.05 23.94 26.60 30.03 34.69 39.75 46.51 55.34 66.05 79.26 93.53 77 63 8.38 12.19 16.67 20.18 21.83 23.66 25.38 28.37 32.26 37.44 42.81 50.16 59.58 71.30 85.68 101.21 78 64 9.29 13.33 17.95 21.57 23.40 25.08 27.40 30.80 35.19 40.92 46.72 54.71 64.80 77.54 93.12 110.23 79 65 10.41 14.56 19.26 23.06 24.89 26.92 30.22 34.16 39.09 45.38 51.79 60.49 71.36 85.14 101.98 120.56 80 66 11.76 15.90 20.61 24.62 26.59 29.88 33.88 38.47 43.98 50.88 58.08 67.55 79.31 94.17 112.31 131.53 81 67 13.26 17.34 22.02 26.26 29.28 33.51 38.11 43.47 49.58 57.14 65.23 75.54 88.26 104.23 123.70 142.72 82 68 14.84 18.87 23.51 28.02 32.33 37.11 42.60 48.78 55.55 63.75 72.80 83.96 97.68 114.75 135.59 154.40 83 69 16.37 20.50 25.11 29.92 35.07 40.72 47.03 54.05 61.51 70.35 80.32 92.31 107.07 125.18 147.38 166.80 84 70 17.31 22.24 26.84 32.00 37.96 44.19 51.20 59.08 67.29 76.72 87.53 100.29 116.08 135.12 158.65 179.36 85 71 19.17 24.10 28.69 34.27 41.03 47.59 55.20 63.98 72.98 82.97 94.57 108.02 124.83 144.65 169.42 192.47 86 72 20.50 26.07 30.66 36.67 44.28 51.01 59.18 68.88 78.73 89.25 101.62 115.75 133.58 154.12 180.12 205.30 87 73 21.85 28.10 32.73 39.20 47.63 54.50 63.22 73.85 84.56 95.62 108.77 123.63 142.55 163.88 191.22 216.90 88 74 23.26 30.14 34.87 41.82 51.03 58.10 67.39 78.92 90.49 102.16 116.12 131.80 151.95 174.27 203.17 228.50 89 75 24.74 32.18 37.09 44.50 54.44 61.85 71.73 84.13 96.53 108.87 123.70 140.36 161.83 185.46 216.20 242.81 90 76 26.27 34.23 39.38 47.26 57.90 65.71 76.22 89.45 102.67 115.74 131.49 149.25 172.18 197.34 230.16 262.51 91 77 27.86 36.31 41.75 50.11 61.42 69.68 80.83 94.88 108.90 122.76 139.46 158.42 182.91 209.80 244.89 288.90 92 78 29.49 38.41 44.21 53.06 64.99 73.76 85.57 100.40 115.23 129.91 147.60 167.87 194.02 222.82 260.40 321.13 93 79 31.79 41.27 47.53 56.72 69.60 78.75 9l.21 106.92 122.05 136.99 155.89 178.70 208.82 241.95 283.67 358.24 94 80 34.77 45.02 51.57 61.37 75.19 84.68 97.87 114.05 128.94 144.32 165.65 193.20 229.82 268.94 316.45 400.30 95 81 37.93 48.85 55.80 66.30 80.85 90.86 104.40 120.50 135.84 153.36 179.O9 212.62 255.46 300.02 353.60 447.29 96 82 41.16 52.85 60.28 71.29 86.76 96.92 110.30 126.94 144.35 165.80 197.09 236.34 284.98 335.24 395.11 499.19 97 83 44.53 57.09 64.82 76.50 92.54 102.39 116.19 134.89 156.06 182.47 219.08 263.66 318.44 374.60 440.96 556.04 98 84 48.10 61.39 69.55 81.59 97.77 107.87 123.47 145.84 171.75 202.83 244.40 294.61 355.82 418.07 491.17 622.29 99
*** CONTINENTAL ASSURANCE C0MPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 0.30 0.32 0.33 0.34 0.34 0.33 0.32 0.32 0.33 0.33 0.34 0.35 0.37 0.41 0.45 0.49 35 21 0.29 0.30 0.32 0.32 0.32 0.32 0.32 0.32 0.33 0.34 0.35 0.37 0.40 0.44 0.48 0.53 36 22 0.28 0.29 0.32 0.32 0.32 0.31 0.32 0.32 0.34 0.35 0.37 0.39 0.43 0.48 0.53 0.58 37 23 0.27 0.28 0.31 0.31 0.31 0.31 0.32 0.33 0.35 0.37 0.39 0.42 0.47 0.52 0.58 0.64 38 24 0.26 0.28 0.31 0.31 0.31 0.32 0.33 0.34 0.36 0.39 0.41 0.46 0.51 0.57 0.64 0.71 39 25 0.26 0.28 0.31 0.31 0.32 0.32 0.34 0.36 0.38 0.41 0.44 0.50 0.56 0.63 0.70 0.79 40 26 0.27 0.28 0.30 0.31 0.32 0.34 0.36 0.38 0.41 0.44 0.49 0.54 0.61 0.69 0.77 0.88 41 27 0.27 0.29 0.31 0.32 0.34 0.36 0.38 0.41 0.44 0.48 0.53 0.60 0.67 0.75 0.85 0.98 42 28 0.28 0.30 0.32 0.34 0.36 0.38 0.41 0.44 0.48 0.53 0.59 0.66 0.74 0.82 0.94 1.09 43 29 0.29 0.31 0.34 0.36 0.38 0.41 0.43 0.48 0.53 0.59 0.66 0.73 0.82 0.91 1.04 1.22 44 30 0.29 0.32 0.36 0.33 0.40 0.43 0.47 0.52 0.58 0.65 0.73 0.81 0.90 1.02 1.16 1.35 45 31 0.30 0.33 0.37 0.40 0.43 0.47 0.51 0.58 0.65 0.73 0.81 0.90 1.02 1.14 1.29 1.48 46 32 0.31 0.35 0.39 0.43 0.46 0.51 0.56 0.64 0.72 0.80 0.89 1.01 1.13 1.26 1.44 1.63 47 33 0.32 0.36 0.41 0.46 0.50 0.55 0.62 0.70 0.80 0.89 1.00 1.12 1.24 1.40 1.60 1.80 48 34 0.33 0.38 0.44 0.49 0.54 0.61 0.68 0.78 0.89 1.00 1.11 1.22 1.34 1.55 1.77 2.02 49 35 0.34 0.40 0.47 0.54 0.59 0.67 0.76 0.86 0.98 1.11 1.21 1.32 1.50 1.70 1.94 2.24 50 36 0.35 0.43 0.51 0.59 0.65 0.75 0.84 0.96 1.09 1.20 1.31 1.48 1.68 1.86 2.13 2.43 51 37 0.37 0.46 0.55 0.64 0.72 0.83 0.94 1.06 1.19 1.31 1.47 1.66 1.83 2.02 2.32 2.63 52 38 0.39 0.49 0.60 0.71 0.79 0.92 1.03 1.17 1.29 1.45 1.64 1.80 1.96 2.19 2.53 2.84 53 39 0.41 0.53 0.65 0.78 0.86 1.02 1.14 1.29 1.44 1.62 1.78 1.94 2.12 2.39 2.76 3.10 54 40 0.44 0.57 0.71 0.84 0.94 1.11 1.25 1.41 1.59 1.76 1.92 2.09 2.32 2.60 3.00 3.42 55 41 0.46 0.61 0.77 0.92 1.03 1.21 1.35 1.53 1.72 1.90 2.08 2.28 2.53 2.84 3.26 3.77 56 42 0.49 0.66 0.83 1.00 1.12 1.31 1.47 1.66 1.86 2.06 2.26 2.49 2.76 3.09 3.53 4.14 57 43 0.52 0.70 0.90 1.00 1.22 1.41 1.59 1.80 2.00 2.22 2.45 2.70 3.00 3.36 3.82 4.51 58 44 0.56 0.76 0.97 1.16 1.32 1.53 1.73 1.96 2.17 2.40 2.65 2.94 3.26 3.65 4.14 4.84 59 45 0.59 0.82 1.05 1.26 1.43 1.66 1.89 2.14 2.35 2.61 2.88 3.18 3.54 3.96 4.48 5.15 60 46 0.62 0.88 1.13 1.35 1.53 1.88 2.08 2.34 2.57 2.85 3.14 3.44 3.83 4.29 4.85 5.48 61 47 0.65 0.94 1.22 1.45 1.65 1.95 2.28 2.55 2.80 3.10 3.41 3.72 4.14 4.65 5.23 5.85 62 48 0.69 1.01 1.31 1.56 1.76 2.11 2.49 2.77 3.03 3.37 3.67 4.01 4.47 5.03 5.66 6.25 63 49 0.72 1.07 1.40 1.66 1.88 2.26 2.69 2.99 3.26 3.63 3.93 4.31 4.82 5.44 6.14 6.82 64 50 0.75 1.14 1.49 1.77 1.99 2.41 2.88 3.19 3.48 3.88 4.19 4.62 5.19 5.89 6.67 7.52 65 51 0.78 1.19 1.57 1.87 2.10 2.54 3.05 3.37 3.68 4.13 4.46 4.95 5.58 6.36 7.24 8.24 66 52 0.81 1.24 1.66 1.97 2.20 2.66 3.21 3.55 3.87 4.37 4.73 5.28 5.98 6.86 7.86 9.01 67 53 0.85 1.30 1.75 2.09 2.32 2.79 3.38 3.74 4.08 4.61 5.02 5.64 6.42 7.40 8.54 9.80 68 54 0.89 1.37 1.87 2.23 2.47 2.95 3.56 3.93 4.29 4.87 5.34 6.04 6.91 8.01 9.30 10.59 69
*** CONTINENTAL ASSURANCE C0MPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 0.96 1.45 2.00 2.42 2.67 3.14 3.75 4.14 4.52 5.15 5.68 6.46 7.45 8.67 10.12 11.48 70 56 1.03 1.55 2.16 2.64 2.91 3.36 3.95 4.35 4.76 5.42 6.04 6.91 8.03 9.38 11.01 12.52 71 57 1.11 1.66 2.34 2.89 3.18 3.60 4.16 4.57 5.01 5.70 6.42 7.38 8.66 10.15 11.97 13.66 72 58 1.20 1.79 2.53 3.15 3.48 3.86 4.38 4.82 5.29 6.01 6.84 7.90 9.34 10.98 13.01 14.93 73 59 1.31 1.94 2.74 3.42 3.77 4.13 4.63 5.09 5.62 6.39 7.32 8.49 10.08 11.88 14.13 16.41 74 60 1.43 2.11 2.97 3.69 4.05 4.39 4.89 5.39 5.98 6.83 7.84 9.12 10.85 12.84 15.32 17.93 75 61 1.57 2.30 3.21 3.97 4.32 4.64 5.13 5.68 6.35 7.29 8.37 9.77 11.63 13.82 16.54 19.42 76 62 1.71 2.51 3.48 4.25 4.59 4.96 5.39 5.99 6.76 7.81 8.94 10.46 12.45 14.86 17.83 21.04 77 63 1.89 2.74 3.75 4.54 4.91 5.32 5.71 6.38 7.26 8.42 9.63 11.29 13.41 16.04 19.28 22.77 78 64 2.09 3.00 4.04 4.85 5.27 5.64 6.16 6.93 7.92 9.21 10.51 12.31 14.58 17.45 20.95 24.80 79 65 2.34 3.28 4.33 5.19 5.60 6.06 6.80 7.69 8.79 10.21 11.65 13.61 16.06 19.16 22.94 27.13 80 66 2.65 3.58 4.64 5.54 5.98 6.72 7.62 8.66 9.89 11.45 13.07 15.20 17.84 21.19 25.27 29.59 81 67 2.98 3.90 4.95 5.91 6.59 7.54 8.58 9.78 11.16 12.86 14.68 17.00 19.86 23.45 27.83 32.11 82 68 3.34 4.25 5.29 6.30 7.27 8.35 9.59 10.98 12.50 14.34 16.38 18.89 21.98 25.82 30.51 34.74 83 69 3.69 4.61 5.65 6.73 7.89 9.16 10.58 12.16 13.84 15.83 18.07 20.77 24.09 28.17 33.16 37.53 84 70 4.01 5.00 6.04 7.20 8.54 9.94 11.52 13.29 15.14 17.26 19.70 22.57 26.12 30.40 35.70 40.36 85 71 4.31 5.42 6.46 7.71 9.23 10.71 12.42 14.40 16.42 18.67 21.28 24.31 28.09 32.55 38.12 43.31 86 72 4.61 5.87 6.90 8.25 9.96 11.48 13.32 15.50 17.72 20.08 22.86 26.04 30.06 34.68 40.53 46.19 87 73 4.92 6.32 7.36 8.82 10.72 12.26 14.22 16.62 19.03 21.52 24.47 27.82 32.07 36.87 43.02 48.80 88 74 5.23 6.78 7.85 9.41 11.48 13.07 15.16 17.76 20.36 22.98 26.13 29.66 34.18 39.21 45.71 51.41 89 75 5.57 7.24 8.34 10.01 12.25 13.92 16.14 18.93 21.72 24.49 27.83 31.58 36.41 41.73 48.65 54.63 90 76 5.91 7.70 8.86 10.63 13.03 14.78 17.15 20.13 23.10 26.04 29.59 33.58 38.74 44.40 51.79 59.06 91 77 6.27 8.17 9.39 11.28 13.82 15.68 18.19 21.35 24.50 27.62 31.38 35.64 41.15 47.20 55.10 65.00 92 78 6.64 8.64 9.95 11.94 14.62 16.60 19.25 22.59 25.93 29.23 33.21 37.77 43.65 50.14 58.59 72.25 93 79 7.15 9.29 10.69 12.76 15.66 17.72 20.52 24.06 27.46 30.82 35.07 40.21 46.99 54.44 63.83 80.60 94 80 7.82 10.13 11.60 13.81 16.92 19.05 22.02 25.66 29.01 32.47 37.27 43.47 51.71 60.51 71.20 90.07 95 81 8.53 10.99 12.55 14.92 18.19 20.44 23.49 27.11 30.56 34.51 40.30 47.84 57.48 67.50 79.56 100.64 96 82 9.26 11.89 13.56 16.04 19.52 21.81 24.82 28.56 32.48 37.31 44.35 53.18 64.12 75.43 88.90 112.32 97 83 10.02 12.85 14.58 17.21 20.82 23.04 26.14 30.35 35.11 41.06 49.29 59.32 71.65 84.23 99.22 125.11 98 84 10.82 13.81 15.65 18.36 22.00 24.27 27.78 32.81 38.64 45.64 54.99 66.29 80.06 94.06 110.51 140.02 99
*** CONTINENTAL ASSURANCE COMPANY *** NON-SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 0.85 0.89 0.93 0.95 0.95 0.93 0.91 0.91 0.92 0.94 0.95 0.97 0.99 1.02 1.06 1.12 35 21 0.30 0.84 0.89 0.91 0.90 0.89 0.88 0.89 0.91 0.93 0.95 0.97 1.01 1.06 1.12 1.19 36 22 0.77 0.80 0.87 0.87 0.86 0.86 0.86 0.88 0.92 0.94 0.97 1.00 1.05 1.12 1.19 1.29 37 23 0.74 0.77 0.84 0.85 0.84 0.85 0.85 0.88 0.93 0.97 1.00 1.05 1.11 1.19 1.29 1.42 38 24 0.71 0.75 0.82 0.83 0.82 0.84 0.86 0.90 0.96 1.00 1.05 1.11 1.18 1.28 1.41 1.56 39 25 0.70 0.74 0.81 0.82 0.82 0.85 0.87 0.93 1.00 1.05 1.11 1.18 1.28 1.41 1.55 1.70 40 26 0.69 0.73 0.81 0.82 0.84 0.87 0.90 0.97 1.04 1.10 1.18 1.28 1.4l 1.55 1.69 1.85 41 27 0.69 0.74 0.82 0.84 0.86 0.90 0.95 1.02 1.10 1.18 1.27 1.41 1.54 1.67 1.84 2.02 42 28 0.70 0.75 0.83 0.86 0.88 0.94 1.00 1.09 1.18 1.27 1.40 1.54 1.66 1.81 2.00 2.21 43 29 0.70 9.76 0.84 0.88 0.94 0.98 1.07 1.16 1.27 1.40 1.54 1.65 1.80 1.97 2.19 2.41 44 30 0.70 0.77 0.86 0.91 0.97 1.04 1.13 1.24 1.38 1.53 1.65 1.79 1.96 2.17 2.40 2.63 45 31 0.70 0.77 0.88 0.94 1.01 1.09 1.20 1.34 1.49 1.64 1.78 1.95 2.16 2.39 2.62 2.87 46 32 0.71 0.78 0.90 0.97 1.06 1.16 1.27 1.44 1.62 1.77 1.94 2.16 2.39 2.61 2.86 3.15 47 33 0.72 0.79 0.92 1.01 1.11 1.24 1.37 1.55 1.76 1.93 2.15 2.38 2.60 2.84 3.14 3.47 48 34 0.73 0.81 0.96 1.07 1.18 1.33 1.48 1.68 1.92 2.14 2.38 2.59 2.84 3.12 3.45 3.86 49 35 0.74 0.85 1.01 1.14 1.27 1.45 1.61 1.84 2.11 2.37 2.58 2.83 3.11 3.43 3.79 4.28 50 36 0.76 0.90 1.08 1.23 1.37 1.59 1.77 2.02 2.31 2.57 2.81 3.09 3.41 3.76 4.18 4.71 51 37 0.79 0.95 1.15 1.34 1.49 1.74 1.96 2.22 2.52 2.79 3.07 3.38 3.71 4.11 4.59 5.18 52 38 0.82 1.01 1.24 1.46 1.63 1.91 2.15 2.43 2.75 3.04 3.35 3.68 4.03 4.52 5.07 5.73 53 39 0.85 1.08 1.33 1.59 1.77 2.09 2.36 2.66 3.00 3.33 3.65 3.99 4.42 4.99 5.62 6.37 54 40 0.89 1.16 1.44 1.72 1.92 2.28 2.56 2.89 3.25 3.63 3.96 4.36 4.88 5.52 6.27 7.15 55 41 0.94 1.24 1.56 1.87 2.09 2.45 2.77 3.13 3.49 3.98 4.29 4.77 5.38 6.12 6.99 8.08 56 42 0.00 1.33 1.68 2.02 2.27 2.64 2.98 3.37 3.75 4.17 4.64 5.22 5.92 6.77 7.78 9.13 57 43 1.06 1.43 1.82 2.18 2.46 2.85 3.22 3.65 4.04 4.48 5.04 5.72 6.54 7.51 8.66 10.26 58 44 1.12 1.54 1.98 2.37 2.68 3.09 3.51 3.98 4.38 4.86 5.52 6.30 7.24 8.34 9.65 11.41 59 45 1.20 1.67 2.16 2.58 2.92 3.38 3.87 4.33 4.78 5.35 6.09 6.98 8.06 9.30 10.75 12.58 60 46 1.28 1.82 2.35 2.81 3.18 3.72 4.24 4.72 5.28 5.98 6.74 7.77 8.97 10.37 11.98 13.82 61 47 1.37 1.99 2.57 3.05 3.48 4.10 4.63 5.21 5.92 6.57 7.47 8.63 9.98 11.54 13.30 15.24 62 48 1.47 2.17 2.80 3.32 3.78 4.49 5.21 5.83 6.51 7.16 8.26 9.56 11.05 12.80 14.72 16.86 63 49 1.57 2.34 3.04 3.61 4.11 4.90 5.82 6.46 7.05 7.85 9.07 10.53 12.18 14.11 16.23 18.65 64 50 1.67 2.52 3.29 3.91 4.45 5.30 6.33 7.02 7.65 8.54 9.90 11.51 13.32 15.44 17.80 20.54 65 51 1.76 2.68 3.54 4.22 4.78 5.69 6.83 7.56 8.24 9.24 10.73 12.50 14.49 16.79 19.43 22.49 66 52 1.85 2.83 3.80 4.53 5.12 6.87 7.34 8.11 8.24 9.97 11.60 13.53 15.71 18.19 21.13 24.54 67 53 1.97 3.01 4.09 4.89 5.52 6.49 7.87 8.70 9.49 10.74 12.52 14.62 17.00 19.69 22.97 26.64 68 54 2.12 3.24 4.44 5.32 5.99 7.01 8.46 9.34 10.20 11.58 13.52 15.81 18.42 21.36 24.99 28.77 69
*** CONTINENTAL ASSURANCE COMPANY *** NON-SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 2.32 3.52 4.87 5.83 6.57 7.63 9.11 10.05 10.99 12.49 14.60 17.08 19.93 23.17 27.17 31.19 70 56 2.55 3.85 5.37 6.41 7.24 8.36 9.81 10.80 11.83 13.44 15.73 18.40 21.50 25.08 29.44 34.02 71 57 2.81 4.22 5.93 7.04 7.99 9.16 10.56 11.60 12.72 14.46 16.91 19.79 23.16 27.11 31.86 37.11 72 58 3.11 4.63 6.54 7.75 8.80 10.02 11.36 12.47 13.71 15.58 18.23 21.33 25.02 29.39 34.59 40.46 73 59 3.46 5.11 7.20 8.52 9.65 10.91 12.22 13.42 14.82 16.86 19.73 23.11 27.18 32.04 37.77 44.17 74 60 3.85 5.65 7.92 9.38 10.54 11.77 13.09 14.42 16.03 18.30 21.39 25.11 29.66 35.09 41.48 48.57 75 61 4.26 6.25 8.70 10.33 11.46 12.58 14.11 15.59 17.25 19.81 23.16 27.26 32.40 38.50 45.66 53.73 76 62 4.72 6.90 9.53 11.36 12.24 13.77 15.38 16.64 18.57 21.46 25.07 29.61 35.41 42.24 50.26 59.43 77 63 5.24 7.62 10.39 12.06 13.45 15.14 16.24 17.71 20.14 23.38 27.30 32.29 38.78 46.37 55.32 65.67 78 64 5.84 8.38 11.27 13.14 14.79 15.98 17.21 19.36 22.12 25.72 29.98 35.45 42.59 50.94 60.86 72.30 79 65 6.56 9.18 12.15 14.56 15.70 16.99 19.05 21.55 24.65 28.62 33.27 39.21 46.94 56.04 66.94 78.96 80 66 7.42 10.04 13.01 15.57 16.83 18.87 21.38 24.29 27.76 32.12 37.20 43.62 51.85 61.67 73.60 85.54 81 67 8.37 10.94 13.89 16.60 18.54 21.14 24.03 27.42 31.28 36.04 41.61 48.51 57.22 67.77 80.76 92.66 82 68 9.35 11.90 14.82 17.67 20.39 23.39 26.84 30.74 35.00 40.17 46.26 53.66 62.90 74.19 88.29 100.51 83 69 10.31 12.92 15.81 18.84 22.08 25.64 29.61 34.03 38.74 44.30 50.92 58.87 68.71 80.77 96.04 109.08 84 70 1l.2l 14.01 16.90 20.15 23.89 27.82 32.23 37.20 42.36 48.30 55.47 64.01 74.60 87.45 103.96 118.49 85 71 12.07 15.18 18.07 21.57 25.83 29.96 34.76 40.28 45.95 52.23 59.97 69.14 80.61 94.29 112.09 128.71 86 72 12.91 16.41 19.31 23.09 27.87 32.11 37.26 43.37 49.58 56.19 64.52 74.36 86.80 101.32 120.47 139.71 87 73 13.76 17.69 20.60 24.68 29.98 34.31 39.80 46.49 53.25 60.20 69.15 79.68 93.14 108.55 129.09 150.28 88 74 14.64 18.97 21.95 26.33 32.12 36.57 42.43 49.69 56.98 64.31 73.88 85.13 99.61 115.95 137.92 158.91 89 75 15.57 20.26 23.35 28.02 34.28 38.93 45.17 52.97 60.78 68.54 78.74 90.73 106.19 123.54 146.95 166.61 90 76 16.54 21.55 24.79 29.76 36.45 41.36 47.99 56.32 64.65 72.87 83.72 96.45 112.90 131.31 156.20 173.59 91 77 17.54 22.86 26.29 31.55 38.67 43.87 50.89 59.73 68.56 77.29 88.79 102.29 119.75 139.27 165.66 181.60 92 78 18.57 24.19 27.83 33.41 40.92 46.44 53.87 63.21 72.54 81.79 93.96 108.26 126.73 147.40 175.33 194.20 93 79 20.03 25.93 29.77 35.82 43.81 49.80 57.77 67.78 77.71 86.90 98.9l 113.99 132.56 155.80 187.57 209.55 94 80 21.87 28.09 32.25 38.85 47.55 54.10 62.75 73.57 83.58 91.89 103.70 118.77 138.67 166.62 202.40 222.10 95 81 23.70 30.43 34.98 42.16 51.65 58.76 68.11 79.13 88.39 96.34 108.05 124.25 148.30 179.79 214.52 233.61 96 82 25.67 31.01 37.96 45.80 56.11 63.79 73.26 83.68 92.67 100.38 113.03 132.87 160.02 190.56 225.64 245.78 97 83 27.84 35.82 41.24 49.75 60.90 68.61 77.47 87.73 96.55 105.01 120.87 143.37 169.61 200.43 237.39 256.82 98 84 30.22 38.91 44.79 54.00 65.51 72.55 81.22 91.41 10l.0l 112.29 130.43 151.96 178.40 210.88 248.06 278.80 99
*** CONTINENTAL ASSURANCE COMPANY *** NON-SMOKER Y.R.T. RATES PER $l,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 0.19 0.20 0.21 0.21 0.21 0.21 0.21 0.20 0.21 0.21 0.21 0.22 0.22 0.23 0.24 0.25 35 21 0.18 0.19 0.20 0.20 0.20 0.20 0.20 0.20 0.21 0.21 0.21 0.22 0.23 0.24 0.25 0.27 36 22 0.17 0.18 0.19 0.20 0.19 0.19 0.19 0.20 0.21 0.21 0.22 0.23 0.24 0.25 0.27 0.29 37 23 0.17 0.17 0.19 0.19 0.19 0.19 0.19 0.20 0.21 0.22 0.23 0.24 0.25 0.27 0.29 0.32 38 24 0.16 0.17 0.18 0.19 0.18 0.19 0.19 0.20 0.22 0.23 0.24 0.25 0.27 0.29 0.32 0.35 39 25 0.16 0.17 0.18 0.18 0.18 0.19 0.20 0.21 0.22 0.24 0.25 0.27 0.29 0.32 0.35 0.38 40 26 0.16 0.16 0.18 0.18 0.19 0.19 0.20 0.22 0.23 0.25 0.27 0.29 0.32 0.35 0.38 0.42 41 27 0.16 0.17 0.18 0.19 0.19 0.20 0.21 0.23 0.25 0.27 0.29 0.32 0.35 0.38 0.41 0.46 42 28 0.16 0.17 0.19 0.19 0.20 0.21 0.23 0.24 0.27 0.29 0.32 0.35 0.37 0.41 0.45 0.50 43 29 0.16 0.17 0.19 0.20 0.21 0.22 0.24 0.26 0.29 0.32 0.35 0.37 0.40 0.44 0.49 0.54 44 30 0.16 0.17 0.19 0.20 0.22 0.23 0.25 0.28 0.31 0.34 0.37 0.40 0.44 0.49 0.54 0.59 45 31 0.16 0.17 0.20 0.21 0.23 0.25 0.27 0.30 0.34 0.37 0.40 0.44 0.49 0.54 0.59 0.65 46 32 0.16 0.18 0.20 0.22 0.24 0.26 0.29 0.32 0.36 0.40 0.44 0.49 0.54 0.59 0.64 0.71 47 33 0.16 0.18 0.21 0.23 0.25 0.28 0.31 0.35 0.40 0.43 0.48 0.54 0.59 0.64 0.71 0.78 48 34 0.16 0.18 0.22 0.24 0.27 0.30 0.33 0.38 0.43 0.48 0.53 0.58 0.64 0.70 0.78 0.87 49 35 0.17 0.19 0.23 0.26 0.28 0.33 0.36 0.41 0.47 0.53 0.58 0.64 0.70 0.77 0.85 0.96 50 36 0.17 0.20 0.24 0.28 0.31 0.36 0.40 0.45 0.52 0.58 0.63 0.69 0.77 0.85 0.94 1.06 51 37 0.18 0.21 0.26 0.30 0.34 0.39 0.44 0.50 0.57 0.63 0.69 0.76 0.83 0.92 1.03 1.17 52 38 0.18 0.23 0.28 0.33 0.37 0.43 0.48 0.55 0.62 0.68 0.75 0.83 0.91 1.02 1.14 1.29 53 39 0.19 0.24 0.30 0.36 0.40 0.47 0.53 0.60 0.67 0.75 0.82 0.90 1.00 1.12 1.27 1.43 54 40 0.20 0.26 0.32 0.39 0.43 0.51 0.58 0.65 0.73 0.82 0.89 0.98 1.10 1.24 1.41 1.61 55 41 0.21 0.28 0.35 0.42 0.47 0.55 0.62 0.70 0.79 0.88 0.97 1.07 1.21 1.38 1.57 1.82 56 42 0.22 0.30 0.38 0.45 0.51 0.59 0.67 0.76 0.84 0.94 1.04 1.17 1.33 1.52 1.75 2.05 57 43 0.24 0.32 0.41 0.49 0.55 0.64 0.72 0.82 0.91 1.01 1.13 1.29 1.47 1.69 1.95 2.31 58 44 0.25 0.35 0.45 0.53 0.60 0.70 0.79 0.90 0.99 1.09 1.24 1.42 1.63 1.88 2.17 2.57 59 45 0.27 0.38 0.49 0.58 0.66 0.76 0.87 0.97 1.08 1.20 1.37 1.57 1.81 2.09 2.42 2.83 60 46 0.29 0.41 0.53 0.63 0.72 0.84 0.95 1.06 1.19 1.34 1.52 1.75 2.02 2.33 2.69 3.11 61 47 0.31 0.45 0.58 0.69 0.78 0.92 1.04 1.17 1.33 1.48 1.68 1.94 2.25 2.60 2.99 3.43 62 48 0.33 0.49 0.63 0.75 0.85 1.01 1.17 1.31 1.46 1.61 1.86 2.15 2.49 2.88 3.31 3.79 63 49 0.35 0.53 0.68 0.81 0.92 1.10 1.31 1.45 1.59 1.77 2.04 2.37 2.74 3.17 3.65 4.20 64 50 0.37 0.57 0.74 0.88 1.00 1.19 1.43 1.58 1.72 1.92 2.23 2.59 3.00 3.47 4.01 4.62 65 51 0.40 0.60 0.80 0.95 1.07 1.28 1.54 1.70 1.85 2.08 2.41 2.81 3.26 3.78 4.37 5.06 66 52 0.42 0.64 0.85 1.02 1.15 1.37 1.65 1.83 1.99 2.24 2.61 3.04 3.53 4.09 4.75 5.52 67 53 0.44 0.68 0.92 1.10 1.24 1.46 1.77 1.96 2.13 2.42 2.82 3.29 3.83 4.43 5.17 5.99 68 54 0.43 0.73 1.00 1.20 1.35 1.58 1.98 2.10 2.30 2.61 3.04 3.56 4.14 4.81 5.62 6.47 69
*** CONTINENTAL ASSURANCE COMPANY *** NON-SMOKER Y.R.T. RATES PER $l,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 0.52 0.79 1.10 1.31 l.48 1.72 2.05 2.26 2.47 2.81 3.29 3.84 4.48 5.21 6.11 7.02 70 56 0.57 0.87 1.21 1.44 1.63 1.88 2.21 2.43 2.66 3.02 3.54 4.14 4.84 5.64 6.62 7.65 71 57 0.63 0.95 1.33 1.58 1.80 2.06 2.38 2.61 2.86 3.25 3.81 4.45 5.21 6.10 7.17 8.35 72 58 0.70 1.04 1.47 1.74 1.98 2.25 2.56 2.81 3.09 3.50 4.10 4.80 5.63 6.61 7.78 9.10 73 59 0.78 1.15 1.62 1.92 2.17 2.45 2.75 3.02 3.34 3.79 4.44 5.20 6.12 7.21 8.50 9.94 74 60 0.87 1.27 1.78 2.11 2.37 2.65 2.95 3.25 3.61 4.12 4.81 5.65 6.67 7.90 9.33 10.93 75 61 0.96 1.41 1.96 2.32 2.58 2.83 3.17 3.51 3.88 4.46 5.21 6.13 7.29 8.66 10.27 12.09 76 62 1.06 1.55 2.14 2.56 2.75 3.10 3.46 3.71 4.18 4.83 5.64 6.66 7.97 9.50 11.31 13.37 77 63 1.31 1.71 2.34 2.71 3.03 3.41 3.65 3.99 4.53 5.26 6.14 7.27 8.72 10.43 12.45 14.78 78 64 1.31 1.89 2.54 2.96 3.33 3.60 3.87 4.36 4.98 5.79 6.74 7.93 9.58 11.46 13.69 16.27 79 65 1.48 2.07 2.73 3.27 3.53 3.82 4.29 4.85 5.55 6.44 7.49 8.82 10.56 12.61 15.06 17.77 80 66 1.67 2.26 2.93 3.50 3.79 4.25 4.81 5.47 6.25 7.23 8.37 9.81 11.67 13.88 16.56 19.25 81 67 1.88 2.46 3.13 3.73 4.17 4.76 5.41 6.17 7.04 8.11 9.36 10.91 12.88 15.25 18.17 20.85 82 68 2.10 2.68 3.33 3.98 4.59 5.26 6.04 6.92 7.88 9.04 10.41 12.07 14.15 16.69 19.86 22.61 83 69 2.32 2.91 3.56 4.24 4.97 5.77 6.66 7.66 8.72 9.97 11.46 13.25 15.46 18.17 21.61 24.54 84 70 2.52 3.15 3.80 4.53 5.38 6.26 7.25 8.37 9.53 10.87 12.48 14.40 16.78 19.68 23.39 26.66 85 71 2.72 3.41 4.06 4.85 5.81 6.74 7.82 9.06 10.34 11.75 13.49 15.56 18.14 21.22 25.22 28.96 86 72 2.90 3.69 4.34 5.20 6.27 7.23 8.38 9.76 11.15 12.64 14.52 16.73 19.53 22.80 27.11 31.43 87 73 3.10 3.98 4.64 5.55 6.75 7.72 8.96 10.46 11.98 13.55 15.56 17.93 20.96 24.42 29.04 33.81 88 74 3.29 4.27 4.94 5.92 7.23 8.23 9.55 11.18 12.82 14.47 16.62 19.16 22.41 26.09 31.03 35.75 89 75 3.50 4.56 5.25 6.30 7.71 8.76 10.16 11.92 13.68 15.42 17.72 20.41 23.89 27.80 33.06 37.49 90 76 3.72 4.85 5.58 6.70 8.20 9.31 10.80 12.67 14.55 16.40 18.84 21.70 25.40 29.54 35.14 39.06 91 77 3.95 5.14 5.91 7.10 8.70 9.87 11.45 13.44 15.43 17.39 19.98 23.02 26.94 31.33 37.27 40.86 92 78 4.18 5.44 6.26 7.52 9.21 10.45 12.12 14.22 16.32 18.40 21.14 24.36 28.51 33.17 39.45 43.69 93 79 4.51 5.83 6.70 8.06 9.86 11.21 13.00 15.25 17.48 19.55 22.25 25.65 29.83 35.06 42.20 47.15 94 80 4.92 6.32 7.26 8.74 10.70 12.17 14.12 16.55 18.81 20.67 23.33 26.72 31.20 37.49 45.54 49.97 95 81 5.33 6.85 7.87 9.49 11.62 13.22 15.32 17.80 19.89 21.68 24.31 27.96 33.37 40.45 48.27 52.56 96 82 5.78 7.43 8.54 10.31 12.62 14.35 16.48 18.83 20.85 22.58 25.43 29.90 36.01 42.88 50.77 55.30 97 83 6.26 8.06 9.28 11.19 13.70 15.44 17.43 19.74 21.72 23.63 27.20 32.26 38.16 45.10 53.41 57.79 98 84 6.80 8.76 10.08 12.15 14.74 16.32 18.28 20.57 22.73 25.27 29.35 34.19 40.14 47.45 55.81 62.73 99
*** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 0 2.83 0.97 0.90 0.88 0.83 0.81 0.78 0.74 0.69 0.66 0.69 10 1 0.95 0.90 0.88 0.83 0.81 0.78 0.74 0.69 0.66 0.69 0.74 11 2 0.85 0.85 0.83 0.78 0.76 0.74 0.69 0.66 0.69 0.74 0.78 12 3 0.83 0.78 0.76 0.71 0.69 0.69 0.66 0.69 0.74 0.78 0.81 13 4 0.76 0.71 0.66 0.64 0.66 0.66 0.69 0.74 0.78 0.81 0.90 14 5 0.64 0.64 0.62 0.64 0.66 0.69 0.74 0.78 0.81 0.90 1.07 15 6 0.55 0.59 0.62 0.66 0.69 0.74 0.78 0.81 0.90 1.07 1.23 16 7 0.50 0.57 0.62 0.69 0.74 0.78 0.81 0.90 1.07 1.23 1.38 17 8 0.48 0.57 0.66 0.74 0.78 0.81 0.90 1.07 1.23 1.38 1.47 18 9 0.50 0.62 0.74 0.78 0.81 0.90 1.07 1.23 1.38 1.47 1.57 19 10 0.52 0.69 0.78 0.81 0.90 1.07 1.23 1.38 1.47 1.57 1.57 20 11 0.55 0.74 0.81 0.90 1.07 1.23 1.38 1.47 1.57 1.57 1.50 21 12 0.62 0.78 0.90 1.07 1.23 1.38 1.47 1.57 1.57 1.50 1.45 22 13 0.71 0.88 1.07 1.23 1.38 1.47 1.57 1.57 1.50 1.45 1.42 23 14 0.88 1.02 1.23 1.38 1.47 1.57 1.57 1.50 1.45 1.42 1.40 24 15 0.95 1.16 1.38 1.47 1.57 1.57 1.50 1.45 1.42 1.40 1.35 25 16 1.02 1.33 1.47 1.57 1.57 1.50 1.45 1.42 1.40 1.35 1.35 26 17 1.04 1.42 1.54 1.57 1.50 1.45 1.42 1.40 1.35 1.35 1.40 27 18 1.02 1.42 1.52 1.50 1.45 1.42 1.40 1.35 1.35 1.40 1.45 28 19 0.97 1.38 1.45 1.45 1.40 1.40 1.35 1.35 1.40 1.45 1.52 29 20 0.93 1.28 1.33 1.35 1.33 1.35 1.35 1.40 1.45 1.52 1.61 30 21 0.83 1.19 1.19 1.23 1.26 1.33 1.40 1.45 1.52 1.61 1.71 31 22 0.83 1.12 1.12 1.16 1.21 1.33 1.42 1.47 1.59 1.69 1.78 32 23 0.81 1.09 1.09 1.14 1.19 1.33 1.42 1.50 1.61 1.73 1.83 33 24 0.78 1.07 1.09 1.14 1.19 1.33 1.42 1.52 1.64 1.76 1.88 34 25 0.74 1.02 1.09 1.14 1.21 1.33 1.42 1.54 1.69 1.80 1.95 35 26 0.69 1.00 1.09 1.14 1.23 1.35 1.45 1.59 1.73 1.90 2.04 36 27 0.66 1.00 1.09 1.14 1.26 1.40 1.50 1.66 1.80 2.02 2.18 37 28 0.66 1.00 1.09 1.14 1.28 1.42 1.57 1.73 1.92 2.16 2.37 38 29 0.66 1.00 1.09 1.14 1.28 1.45 1.66 1.83 2.07 2.30 2.59 39 30 0.69 1.00 1.09 1.16 1.35 1.54 1.76 1.99 2.23 2.49 2.83 40 31 0.71 1.02 1.12 1.26 1.47 1.69 1.90 2.16 2.42 2.73 3.09 41 32 0.71 1.09 1.19 1.40 1.59 1.85 2.09 2.35 2.66 2.99 3.40 42 33 0.74 1.16 1.31 1.52 1.76 2.04 2.30 2.61 2.94 3.30 3.73 43 34 0.78 1.23 1.42 1.64 1.92 2.23 2.54 2.90 3.23 3.63 4.08 44 35 0.83 1.31 1.54 1.78 2.09 2.42 2.75 3.16 3.54 3.99 4.46 45 36 0.88 1.38 1.66 1.92 2.26 2.61 2.97 3.42 3.87 4.37 4.89 46 37 0.95 1.47 1.76 2.07 2.40 2.78 3.18 3.68 4.20 4.77 5.37 47 38 1.02 1.54 1.85 2.18 2.54 2.92 3.40 3.94 4.56 5.20 5.89 48 39 1.12 1.61 1.92 2.30 2.68 3.06 3.61 4.20 4.94 5.65 6.44 49 40 1.23 1.71 2.02 2.45 2.83 3.21 3.82 4.46 5.32 6.15 7.01 50 41 1.33 1.80 2.16 2.61 3.02 3.40 4.11 4.80 5.75 6.70 7.65 51 42 1.42 1.92 2.33 2.83 3.28 3.68 4.46 5.20 6.25 7.27 8.34 52 43 1.54 2.09 2.54 3.09 3.59 4.01 4.89 5.68 6.77 7.86 9.02 53 44 1.69 2.28 2.80 3.40 3.94 4.39 5.37 6.22 7.31 8.50 9.74 54
*** CONTINENTAL ASSURANCE C0MPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 45 1.80 2.47 3.09 3.73 4.32 4.82 5.87 6.82 7.93 9.19 10.54 55 46 1.90 2.66 3.37 4.06 4.70 5.25 6.39 7.43 8.62 9.95 11.45 56 47 1.97 2.85 3.66 4.39 5.08 5.68 6.91 8.07 9.38 10.81 12.42 57 48 2.02 3.04 3.94 4.73 5.46 6.10 7.46 8.74 10.19 11.76 13.47 58 49 2.07 3.23 4.23 5.08 5.87 6.53 8.03 9.43 11.04 12.80 14.61 59 50 2.11 3.44 4.51 5.46 6.29 7.01 8.64 10.19 11.99 13.92 15.84 60 51 2.18 3.68 4.82 5.84 6.75 7.53 9.31 11.02 13.04 15.13 17.22 61 52 2.30 3.92 5.15 6.22 7.22 8.05 9.97 11.92 14.15 16.43 18.71 62 53 2.49 4.13 5.49 6.63 7.67 8.57 10.66 12.87 15.32 17.79 20.26 63 54 2.73 4.37 5.82 7.05 8.12 9.14 11.40 13.87 16.55 19.21 21.90 64 55 2.97 4.66 6.20 7.53 8.67 9.83 12.23 15.01 17.91 20.78 23.70 65 56 3.23 5.01 6.67 8.10 9.36 10.71 13.28 16.34 19.43 22.54 25.77 66 57 3.51 5.51 7.24 8.81 10.24 11.88 14.63 17.88 21.16 24.49 28.14 67 58 3.82 6.10 7.93 9.69 11.35 13.35 16.29 19.64 23.08 26.62 30.78 68 59 4.16 6.79 8.72 10.66 12.63 15.03 18.17 21.59 25.20 28.95 33.65 69 60 4.51 7.55 9.52 11.68 13.96 16.81 20.14 23.65 27.48 31.49 36.76 70 61 4.92 8.29 10.33 12.71 15.27 18.55 22.11 25.79 29.88 34.25 40.16 71 62 5.37 8.95 11.07 13.58 16.39 20.02 23.89 27.86 32.28 37.07 43.75 72 63 5.87 9.55 11.66 14.27 17.24 21.16 25.36 29.69 34.53 39.85 47.33 73 64 6.39 10.12 12.23 14.91 18.03 22.23 26.77 31.54 36.88 42.77 51.11 74 65 7.01 10.81 12.99 15.77 19.07 23.61 28.55 33.84 39.73 46.24 55.48 75 66 7.29 11.78 14.13 17.15 20.76 25.67 31.11 36.98 43.51 50.73 60.80 76 67 8.74 13.11 15.79 19.24 23.32 28.74 34.75 41.30 48.59 56.62 67.40 77 68 9.90 14.77 17.98 21.99 26.72 32.73 39.45 46.79 54.93 63.89 75.29 78 69 11.21 16.70 20.54 25.22 30.73 37.41 44.91 53.10 62.20 72.15 84.10 79 70 12.59 18.83 23.35 28.79 35.13 42.51 50.82 59.92 69.99 80.96 93.46 80 71 14.01 21.07 26.29 32.49 39.64 47.76 56.90 66.90 77.90 89.87 102.98 81 72 15.39 23.25 29.21 36.15 44.08 52.96 62.89 73.79 85.67 98.56 112.43 82 73 16.74 25.53 32.18 39.88 48.57 58.23 68.95 80.70 93.46 107.21 121.88 83 74 18.17 28.02 35.39 43.84 53.34 63.79 75.34 87.90 101.48 116.09 131.50 84 75 19.74 30.66 38.85 48.09 58.38 69.63 82.01 95.38 109.77 125.23 141.41 85 76 21.45 33.51 42.56 52.61 63.70 75.81 88.97 103.15 118.37 134.64 151.74 86 77 23.25 36.57 46.48 57.38 69.35 82.29 96.26 111.22 127.25 144.28 161.86 87 78 25.15 39.80 50.66 62.44 75.26 89.04 103.81 119.58 136.37 154.16 171.00 88 79 27.63 43.70 55.37 67.87 81.45 96.04 111.61 128.31 145.31 163.30 180.14 89 80 30.71 48.15 60.46 73.57 87.88 103.27 119.76 136.87 153.52 172.03 191.42 90 81 33.83 52.57 65.54 79.38 94.50 110.82 127.75 144.60 161.73 182.81 206.96 91 82 36.94 56.99 70.71 85.36 101.41 118.20 134.97 152.33 171.85 197.64 227.76 92 83 40.05 61.49 76.04 91.59 108.17 124.88 142.18 161.87 185.80 217.51 253.17 93 84 43.21 66.12 81.59 97.70 114.28 131.56 151.09 175.00 204.48 241.78 282.43 94 85 47.73 72.88 89.39 106.00 123.64 143.60 167.83 197.93 233.60 277.21 315.59 95 86 52.48 79.67 96.79 114.46 134.66 159.10 189.23 225.35 266.90 317.24 352.64 96 87 55.98 84.17 101.96 121.63 145.59 175.09 210.34 251.40 298.24 354.49 393.56 97 88 59.14 88.67 108.35 131.50 160.22 194.63 234.65 280.91 333.25 395.62 438.38 98 89 62.30 94.22 117.14 144.72 178.10 217.12 262.20 313.89 371.92 440.67 490.61 99
*** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 0 0.64 0.22 0.20 0.20 0.19 0.18 0.18 0.17 0.15 0.15 0.15 10 1 0.21 0.20 0.20 0.19 0.18 0.18 0.17 0.15 0.15 0.15 0.17 11 2 0.19 0.19 0.19 0.18 0.17 0.17 0.15 0.15 0.15 0.17 0.18 12 3 0.19 0.18 0.17 0.16 0.15 0.15 0.15 0.15 0.17 0.18 0.18 13 4 0.17 0.16 0.15 0.14 0.15 0.15 0.15 0.17 0.18 0.18 0.20 14 5 0.14 0.14 0.14 0.14 0.15 0.15 0.17 0.18 0.18 0.20 0.24 15 6 0.12 0.13 0.14 0.13 0.15 0.17 0.18 0.18 0.20 0.24 0.28 16 7 0.11 0.13 0.14 0.15 0.17 0.18 0.18 0.20 0.24 0.28 0.31 17 8 0.11 0.13 0.15 0.17 0.18 0.18 0.20 0.24 0.28 0.31 0.33 18 9 0.11 0.14 0.17 0.18 0.18 0.20 0.24 0.28 0.31 0.33 0.35 19 10 0.12 0.15 0.18 0.18 0.20 0.24 0.28 0.31 0.33 0.35 0.35 20 11 0.12 0.17 0.18 0.20 0.24 0.28 0.31 0.33 0.35 0.35 0.34 21 12 0.14 0.18 0.20 0.24 0.28 0.31 0.33 0.35 0.35 0.34 0.33 22 13 0.16 0.20 0.24 0.28 0.31 0.33 0.35 0.35 0.34 0.33 0.32 23 14 0.19 0.23 0.28 0.31 0.33 0.35 0.35 0.34 0.33 0.32 0.32 24 15 0.21 0.26 0.31 0.33 0.35 0.35 0.34 0.33 0.32 0.32 0.30 25 16 0.23 0.30 0.33 0.35 0.35 0.34 0.33 0.32 0.32 0.30 0.30 26 17 0.24 0.32 0.35 0.35 0.34 0.33 0.32 0.32 0.30 0.30 0.32 27 18 0.23 0.32 0.34 0.34 0.33 0.32 0.32 0.30 0.30 0.32 0.33 28 19 0.22 0.31 0.33 0.33 0.32 0.32 0.30 0.30 0.32 0.33 0.34 29 20 0.21 0.29 0.30 0.30 0.30 0.30 0.30 0.32 0.33 0.34 0.36 30 21 0.20 0.27 0.27 0.28 0.28 0.30 0.32 0.33 0.34 0.36 0.38 31 22 0.19 0.25 0.25 0.26 0.27 0.30 0.32 0.33 0.36 0.38 0.40 32 23 0.18 0.25 0.25 0.26 0.27 0.30 0.32 0.34 0.36 0.39 0.41 33 24 0.18 0.24 0.25 0.26 0.27 0.30 0.32 0.34 0.37 0.40 0.42 34 25 0.17 0.23 0.25 0.26 0.27 0.30 0.32 0.35 0.38 0.41 0.44 35 26 0.15 0.22 0.25 0.26 0.28 0.30 0.33 0.36 0.39 0.43 0.46 36 27 0.15 0.22 0.25 0.26 0.28 0.32 0.34 0.37 0.41 0.45 0.49 37 28 0.15 0.22 0.25 0.26 0.29 0.32 0.35 0.39 0.43 0.49 0.53 38 29 0.15 0.22 0.25 0.26 0.29 0.33 0.37 0.41 0.46 0.52 0.58 39 30 0.15 0.22 0.25 0.26 0.30 0.35 0.40 0.45 0.50 0.56 0.64 40 31 0.16 0.23 0.25 0.28 0.33 0.38 0.43 0.49 0.55 0.61 0.69 41 32 0.16 0.25 0.27 0.32 0.36 0.42 0.47 0.53 0.60 0.67 0.76 42 33 0.17 0.26 0.29 0.34 0.40 0.46 0.52 0.59 0.66 0.74 0.84 43 34 0.18 0.28 0.32 0.37 0.43 0.50 0.57 0.65 0.73 0.82 0.92 44 35 0.19 0.29 0.35 0.40 0.47 0.55 0.62 0.71 0.80 0.90 1.00 45 36 0.20 0.31 0.37 0.43 0.51 0.59 0.67 0.77 0.87 0.98 1.10 46 37 0.21 0.33 0.40 0.46 0.54 0.63 0.72 0.83 0.95 1.07 1.21 47 38 0.23 0.35 0.42 0.49 0.57 0.66 0.76 0.89 1.03 1.17 1.33 48 39 0.25 0.36 0.43 0.52 0.60 0.69 0.81 0.95 1.11 1.27 1.45 49 40 0.28 0.38 0.45 0.55 0.64 0.72 0.86 1.00 1.20 1.38 1.58 50 41 0.30 0.41 0.49 0.59 0.68 0.76 0.92 1.08 1.29 1.51 1.72 51 42 0.32 0.43 0.52 0.64 0.74 0.83 1.00 1.17 1.41 1.64 1.88 52 43 0.35 0.47 0.57 0.69 0.81 0.90 1.10 1.28 1.52 1.77 2.03 53 44 0.38 0.51 0.63 0.76 0.89 0.99 1.21 1.40 1.65 1.91 2.19 54
*** CONTINENTAL ASSURANCE COMPANY *** AGGREGATE Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11+ AGE 45 0.41 0.56 0.69 0.84 0.97 1.08 1.32 1.53 1.78 2.07 2.37 55 46 0.43 0.60 0.76 0.91 1.06 1.18 1.44 1.67 1.94 2.24 2.58 56 47 0.44 0.64 0.82 0.99 1.14 1.28 1.56 1.82 2.11 2.43 2.79 57 48 0.45 0.68 0.89 1.06 1.23 1.37 1.68 1.97 2.29 2.65 3.03 58 49 0.46 0.73 0.95 1.14 1.32 1.47 1.81 2.12 2.48 2.88 3.29 59 50 0.43 0.77 1.02 1.23 1.42 1.58 1.95 2.29 2.70 3.13 3.56 60 51 0.49 0.83 1.08 1.31 1.52 1.69 2.09 2.48 2.93 3.40 3.87 61 52 0.52 0.88 1.16 1.40 1.62 1.81 2.24 2.68 3.18 3.70 4.21 62 53 0.56 0.93 1.23 1.49 1.73 1.93 2.40 2.90 3.45 4.00 4.56 63 54 0.61 0.98 1.31 1.59 1.83 2.06 2.57 3.12 3.72 4.32 4.93 64 55 0.67 1.05 1.39 1.69 1.95 2.21 2.75 3.38 4.03 4.68 5.33 65 56 0.73 1.13 1.50 1.82 2.11 2.41 2.99 3.68 4.37 5.07 5.80 66 57 0.79 1.24 1.63 1.98 2.30 2.67 3.29 4.02 4.76 5.51 6.33 67 58 0.86 1.37 1.78 2.18 2.55 3.00 3.67 4.42 5.19 5.99 6.93 68 59 0.94 1.53 1.96 2.40 2.84 3.38 4.09 4.86 5.67 6.51 7.57 69 60 1.02 1.70 2.14 2.63 3.14 3.78 4.53 5.32 6.18 7.09 8.27 70 61 1.11 1.86 2.32 2.86 3.44 4.17 4.98 5.80 6.72 7.71 9.04 71 62 1.21 2.01 2.49 3.06 3.69 4.50 5.38 6.27 7.26 8.34 9.84 72 63 1.32 2.15 2.62 3.21 3.88 4.76 5.71 6.68 7.77 8.97 10.65 73 64 1.44 2.28 2.75 3.36 4.06 5.00 6.02 7.10 8.30 9.62 11.50 74 65 1.58 2.43 2.92 3.55 4.29 5.31 6.42 7.61 8.94 10.40 12.48 75 66 1.75 2.65 3.18 3.86 4.67 5.78 7.00 8.32 9.79 11.41 13.68 76 67 1.97 2.95 3.55 4.33 5.25 6.47 7.82 9.29 10.93 12.74 15.17 77 68 2.23 3.32 4.05 4.95 6.01 7.36 8.88 10.53 12.36 14.37 16.94 78 69 2.52 3.76 4.62 5.68 6.91 8.42 10.11 11.95 14.00 16.23 18.92 79 70 2.83 4.24 5.25 6.48 7.90 9.57 11.44 13.48 15.75 18.22 21.03 80 71 3.15 4.74 5.92 7.31 8.92 10.75 12.80 15.01 17.53 20.22 23.17 81 72 3.46 5.23 6.57 8.13 9.92 11.92 14.15 16.60 19.27 22.18 25.30 82 73 3.77 5.74 7.24 8.97 10.93 13.10 15.51 18.16 21.03 24.12 27.42 83 74 4.09 6.31 7.96 9.86 12.00 14.35 16.95 19.78 22.83 26.12 29.59 84 75 4.44 6.90 8.74 10.82 13.13 15.67 18.45 21.46 24.70 28.18 31.82 85 76 4.83 7.54 9.58 11.84 14.33 17.06 20.02 23.21 26.63 30.29 34.14 86 77 5.23 8.23 10.46 12.91 15.60 18.52 21.66 25.02 28.63 32.46 36.42 87 78 5.66 8.96 11.40 14.05 16.93 20.03 23.36 26.91 30.68 34.69 38.48 88 79 6.22 9.83 12.46 15.27 18.33 21.61 25.11 28.87 32.69 36.74 40.53 89 80 6.91 10.83 13.60 16.55 19.77 23.24 26.95 30.79 34.54 38.71 43.07 90 81 7.61 11.83 14.75 17.86 21.26 24.93 28.74 32.53 36.39 41.13 46.57 91 82 8.31 12.82 15.91 19.21 22.82 26.60 30.37 34.27 38.67 44.47 51.25 92 83 9.01 13.84 17.11 20.61 24.34 28.10 31.99 36.42 41.80 48.94 56.96 93 84 9.72 14.88 18.36 21.98 25.71 29.60 33.99 39.38 46.01 54.40 63.55 94 85 10.74 16.40 20.11 23.85 27.82 32.31 37.76 44.53 52.56 62.37 71.01 95 86 11.81 17.92 21.78 25.75 30.30 35.80 42.58 50.70 60.05 71.38 79.34 96 87 12.59 18.94 22.94 27.37 32.76 39.40 47.33 56.56 67.10 79.76 88.55 97 88 13.31 19.95 24.38 29.59 36.05 43.79 52.80 63.20 74.98 89.01 98.63 98 89 14.02 21.20 26.36 32.56 40.07 48.85 58.99 70.62 83.68 99.15 110.39 99
*** CONTINENTAL ASSURANCE COMPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 1.33 1.40 1.46 1.49 1.50 1.46 1.44 1.44 1.46 1.48 1.51 1.58 1.66 1.83 2.00 2.18 35 21 1.27 1.34 1.43 1.44 1.44 1.42 1.41 1.43 1.46 1.50 1.55 1.65 1.78 1.97 2.15 2.35 36 22 1.22 1.29 1.40 1.41 1.40 1.40 1.41 1.44 1.49 1.54 1.64 1.75 1.92 2.13 2.34 2.58 37 23 1.19 1.25 1.39 1.39 1.39 1.40 1.43 1.47 1.54 1.62 1.73 1.87 2.08 2.33 2.57 2.84 38 24 1.18 1.24 1.38 1.39 1.39 1.42 1.45 1.52 1.61 1.72 1.83 2.02 2.27 2.55 2.83 3.16 39 25 1.17 1.24 1.36 1.38 1.41 1.44 1.51 1.61 1.71 1.82 1.97 2.21 2.49 2.80 3.12 3.53 40 26 1.18 1.25 1.36 1.39 1.44 1.50 1.61 1.71 1.82 1.97 2.16 2.42 2.73 3.05 3.43 3.93 41 27 1.21 1.29 1.37 1.43 1.50 1.60 1.71 1.82 1.95 2.15 2.37 2.66 2.99 3.33 3.78 4.37 42 28 1.25 1.34 1.41 1.50 1.60 1.70 1.80 1.95 2.14 2.35 2.63 2.93 3.29 3.65 4.16 4.86 43 29 1.28 1.39 1.49 1.60 1.70 1.80 1.92 2.12 2.35 2.60 2.92 3.25 3.62 4.04 4.62 5.41 44 30 1.31 1.44 1.59 1.67 1.80 1.92 2.08 2.33 2.59 2.90 3.24 3.60 4.01 4.54 5.14 5.98 45 31 1.34 1.48 1.66 1.79 1.91 2.08 2.27 2.56 2.88 3.22 3.58 3.99 4.51 5.06 5.73 6.56 46 32 1.37 1.54 1.73 1.90 2.05 2.26 2.49 2.83 3.20 3.57 3.97 4.49 5.02 5.59 6.39 7.23 47 33 1.40 1.60 1.83 2.03 2.22 2.46 2.74 3.13 3.55 3.95 4.47 4.99 5.49 6.22 7.09 8.01 48 34 1.45 1.68 1.95 2.19 2.41 2.71 3.03 3.46 3.94 4.44 4.95 5.41 5.97 6.88 7.85 8.98 49 35 1.50 1.78 2.10 2.38 2.64 3.00 3.37 3.84 4.37 4.93 5.36 5.88 6.66 7.56 8.64 9.96 50 36 1.57 1.90 2.27 2.60 2.89 3.33 3.75 4.26 4.84 5.34 5.83 6.58 7.46 8.25 9.46 10.81 51 37 1.65 2.03 2.45 2.87 3.18 3.70 4.16 4.72 5.29 5.81 6.51 7.38 8.13 8.97 10.33 11.68 52 38 1.73 2.17 2.66 3.15 3.49 4.10 4.60 5.20 5.75 6.45 7.29 8.02 8.72 9.75 11.26 12.62 53 39 1.83 2.34 2.89 3.45 3.83 4.51 5.06 5.72 6.39 7.20 7.91 8.60 9.41 10.61 12.26 13.77 54 40 1.94 2.52 3.14 3.75 4.19 4.93 5.54 6.26 7.05 7.81 8.51 9.30 10.29 11.57 13.33 15.18 55 41 2.06 2.71 3.41 4.08 4.58 5.36 6.02 6.81 7.64 8.44 9.25 10.15 11.24 12.60 14.47 16.76 56 42 2.19 2.91 3.69 4.43 4.99 5.81 6.52 7.39 8.25 9.17 10.05 11.05 12.25 13.72 15.68 18.42 57 43 2.33 3.13 4.00 4.79 5.42 6.28 7.08 8.02 8.90 9.88 10.87 12.02 13.33 14.92 16.97 20.06 58 44 2.47 3.37 4.32 5.17 5.88 6.80 7.70 8.72 9.63 10.68 11.77 13.05 14.48 16.22 18.39 21.52 59 45 2.61 3.62 4.67 5.58 6.34 7.37 8.42 9.50 10.46 11.61 12.82 14.15 15.71 17.61 19.92 22.90 60 46 2.75 3.90 5.03 6.00 6.82 8.00 9.24 10.39 11.40 12.66 13.97 15.30 17.01 19.08 21.54 24.37 61 47 2.91 4.19 5.42 6.45 7.32 8.68 10.14 11.34 12.42 13.80 15.14 16.52 18.39 20.65 23.26 25.98 62 48 3.06 4.48 5.82 6.91 7.84 9.37 11.06 12.32 13.47 14.98 16.33 17.80 19.85 22.34 25.15 27.78 63 49 3.21 4.77 6.22 7.39 8.36 10.06 11.95 13.27 14.50 16.14 17.46 19.15 21.41 24.18 27.27 30.30 64 50 3.35 5.05 6.62 7.86 8.86 10.70 12.78 14.16 15.46 17.26 18.61 20.54 23.07 26.16 29.63 33.44 65 51 3.49 5.28 6.99 8.31 9.33 11.27 13.54 14.99 16.35 18.33 19.81 21.98 24.79 28.25 32.19 36.62 66 52 3.61 5.51 7.37 8.76 9.78 11.82 14.27 15.79 17.22 19.40 21.02 23.48 26.59 30.48 34.95 40.05 67 53 3.76 5.77 7.79 9.29 10.31 12.40 15.02 16.61 18.11 20.50 22.31 25.08 28.55 32.91 37.97 43.56 68 54 3.97 6.08 8.29 9.93 10.99 13.10 15.81 17.48 19.08 21.66 23.72 26.83 30.72 35.58 41.31 47.06 69
*** CONTINENTAL ASSURANCE COMPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD ISSUE POLICY YEAR AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 55 4.25 6.46 8.90 10.74 11.86 13.96 16.67 18.40 20.11 22.87 25.25 28.72 33.12 56 4.56 6.90 9.61 11.72 12.93 14.93 17.56 19.35 21.17 24.08 26.85 30.70 35.71 57 4.92 7.38 10.40 12.82 14.15 16.01 18.48 20.33 22.28 25.32 28.55 32.81 38.50 58 5.34 7.95 11.26 14.00 15.45 17.16 19.49 21.40 23.52 26.73 30.42 35.12 41.52 59 5.83 8.60 12.20 15.21 16.76 18.36 20.59 22.63 24.97 28.41 32.54 37.72 44.80 60 6.37 9.36 13.20 16.42 18.02 19.53 21.73 23.95 26.59 30.35 34.85 40.53 48.24 61 6.97 10.21 14.29 17.63 19.22 20.61 22.81 25.23 28.23 32.41 37.20 43.41 51.70 62 7.62 11.15 15.45 18.87 20.42 22.05 23.94 26.60 30.03 34.69 39.75 46.51 55.34 63 8.38 12.19 16.67 20.18 21.83 23.66 25.38 28.37 32.26 37.44 42.81 50.16 59.58 64 9.29 13.33 17.95 21.57 23.40 25.08 27.40 30.80 35.19 40.92 46.72 54.71 64.80 65 10.41 14.56 19.26 23.06 24.89 26.92 30.22 34.16 39.09 45.38 51.79 60.49 71.36 66 11.76 15.90 20.61 24.62 26.59 29.88 33.88 38.47 43.98 50.88 58.08 67.55 79.31 67 13.26 17.34 22.02 26.26 29.28 33.51 38.11 43.47 49.58 57.14 65.23 75.54 88.26 68 14.84 18.87 23.51 28.02 32.33 37.11 42.60 48.78 55.55 63.75 72.80 83.96 97.68 69 16.37 20.50 25.11 29.92 35.07 40.72 47.03 54.05 61.51 70.35 80.32 92.31 107.07 70 17.81 22.24 26.84 32.00 37.96 44.19 51.20 59.08 67.29 76.72 87.53 100.29 116.08 71 19.17 24.10 28.69 34.27 41.03 47.59 55.20 63.98 72.98 82.97 94.57 108.02 124.83 72 20.50 26.07 30.66 36.67 44.28 51.01 59.18 68.88 78.73 89.25 101.62 115.75 133.58 73 21.85 28.10 32.73 39.20 47.63 54.50 63.22 73.85 84.56 95.62 108.77 123.63 142.55 74 23.26 30.14 34.87 41.82 51.03 58.10 67.39 78.92 90.49 102.16 116.12 131.80 151.93 75 24.74 32.18 37.09 44.50 54.44 61.85 71.73 84.13 96.53 108.87 123.70 140.36 161.83 76 26.27 34.23 39.38 47.26 57.90 65.71 76.22 89.45 102.67 115.74 131.49 149.25 172.18 77 27.86 36.31 41.75 50.11 61.42 69.68 80.83 94.88 108.98 122.76 139.46 158.42 182.91 78 29.49 38.41 44.21 53.06 64.99 73.76 85.57 100.40 115.23 129.91 147.60 167.87 194.02 79 31.79 41.27 47.53 56.72 69.60 78.75 9l.21 106.92 122.05 136.99 155.89 178.70 208.82 80 34.77 45.02 51.57 61.37 75.19 84.68 97.87 114.05 128.94 144.32 165.65 193.20 229.82 81 37.93 48.85 55.80 66.30 80.85 90.86 104.40 120.50 135.84 153.36 179.09 212.62 255.46 82 41.16 52.85 60.28 71.29 86.76 96.92 110.30 126.94 144.35 165.80 197.09 236.34 284.98 83 44.53 57.09 64.82 76.50 92.54 102.39 116.19 134.89 156.06 182.47 219.08 263.66 318.44 84 48.10 61.39 69.55 81.59 97.77 107.87 123.47 145.84 171.75 202.83 244.40 294.61 355.82 MALE - AGE LAST BIRTHDAY ISSUE ATT'D AGE 14 15 16+ AGE 55 38.52 44.98 51.02 70 56 41.70 48.95 55.64 71 57 45.10 53.22 60.70 72 58 48.79 57.83 66.35 73 59 52.81 62.81 72.95 74 60 57.07 68.09 79.69 75 61 61.43 73.52 86.33 76 62 66.05 79.26 93.53 77 63 71.30 85.68 101.21 78 64 77.54 93.12 110.23 79 65 85.14 101.98 120.56 80 66 94.17 112.31 131.53 81 67 104.23 123.70 142.72 82 68 114.75 135.59 154.40 83 69 125.18 147.38 166.80 84 70 135.12 158.65 179.36 85 71 144.65 169.42 192.47 86 72 154.12 180.12 205.30 87 73 163.88 191.22 216.90 88 74 174.27 203.17 228.50 89 75 185.46 216.20 242.81 90 76 197.34 230.16 262.51 91 77 209.80 244.89 288.90 92 78 222.82 260.40 321.13 93 79 241.95 283.67 358.24 94 80 268.94 316.45 400.30 95 81 300.02 353.60 447.29 96 82 335.24 395.11 499.19 97 83 374.60 440.96 556.04 98 84 418.07 491.17 622.29 99
*** CONTINENTAL ASSURANCE COMPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 0.30 0.32 0.33 0.34 0.34 0.33 0.32 0.32 0.33 0.33 0.34 0.35 0.37 0.41 0.45 0.49 35 21 0.29 0.30 0.32 0.32 0.32 0.32 0.32 0.32 0.33 0.34 0.35 0.37 0.40 0.44 0.48 0.53 36 22 0.28 0.29 0.32 0.32 0.32 0.31 0.32 0.32 0.34 0.35 0.37 0.39 0.43 0.48 0.53 0.58 37 23 0.27 0.28 0.31 0.31 0.31 0.31 0.32 0.33 0.35 0.37 0.39 0.42 0.47 0.52 0.58 0.64 38 24 0.26 0.28 0.31 0.31 0.31 0.32 0.33 0.34 0.36 0.39 0.41 0.46 0.51 0.57 0.64 0.71 39 25 0.26 0.28 0.31 0.31 0.32 0.32 0.34 0.36 0.38 0.41 0.44 0.50 0.56 0.63 0.70 0.79 40 26 0.27 0.28 0.30 0.31 0.32 0.34 0.36 0.38 0.41 0.44 0.49 0.54 0.61 0.69 0.77 0.88 41 27 0.27 0.29 0.31 0.32 0.34 0.36 0.38 0.41 0.44 0.48 0.53 0.60 0.67 0.75 0.85 0.98 42 28 0.28 0.30 0.32 0.34 0.36 0.38 0.41 0.44 0.48 0.53 0.59 0.66 0.74 0.82 0.94 1.09 43 29 0.29 0.31 0.34 0.36 0.38 0.41 0.43 0.48 0.53 0.59 0.66 0.73 0.82 0.91 1.04 1.22 44 30 0.29 0.32 0.36 0.38 0.40 0.43 0.47 0.52 0.58 0.65 0.73 0.81 0.90 1.02 1.16 1.35 45 31 0.30 0.33 0.37 0.40 0.43 0.47 0.51 0.58 0.65 0.73 0.81 0.90 1.02 1.14 1.29 1.48 46 32 0.31 0.35 0.39 0.43 0.46 0.51 0.56 0.64 0.72 0.80 0.89 1.01 1.13 1.26 1.44 1.63 47 33 0.32 0.36 0.41 0.46 0.50 0.55 0.62 0.70 0.80 0.89 1.00 1.12 1.24 1.40 1.60 1.80 48 34 0.33 0.38 0.44 0.49 0.54 0.61 0.68 0.78 0.89 1.00 1.11 1.22 1.34 1.55 1.77 2.02 49 35 0.34 0.40 0.47 0.54 0.59 0.67 0.76 0.86 0.98 1.11 1.21 1.32 1.50 1.70 1.94 2.24 50 36 0.35 0.43 0.51 0.59 0.65 0.75 0.84 0.96 1.09 1.20 1.31 1.48 1.68 1.86 2.13 2.43 51 37 0.37 0.46 0.55 0.64 0.72 0.83 0.94 1.06 1.19 1.31 1.47 1.66 1.83 2.02 2.32 2.63 52 38 0.39 0.49 0.60 0.71 0.79 0.92 1.03 1.17 1.29 1.45 1.64 1.80 1.96 2.19 2.53 2.84 53 39 0.41 0.53 0.65 0.78 0.86 1.02 1.14 1.29 1.44 1.62 1.78 1.94 2.12 2.39 2.76 3.10 54 40 0.44 0.57 0.71 0.84 0.94 1.11 1.25 1.41 1.59 1.76 1.92 2.09 2.32 2.60 3.00 3.42 55 41 0.46 0.61 0.77 0.92 1.03 1.21 1.35 1.53 1.72 1.90 2.08 2.28 2.53 2.84 3.26 3.77 56 42 0.49 0.66 0.83 1.00 1.12 1.31 1.47 1.66 1.86 2.06 2.26 2.49 2.76 3.09 3.53 4.14 57 43 0.52 0.70 0.90 1.08 1.22 1.41 1.59 1.80 2.00 2.22 2.45 2.70 3.00 3.36 3.82 4.51 58 44 0.56 0.76 0.97 1.16 1.32 1.53 1.73 1.96 2.17 2.40 2.65 2.94 3.26 3.65 4.14 4.84 59 45 0.59 0.82 1.05 1.26 1.43 1.66 1.89 2.14 2.35 2.61 2.88 3.18 3.54 3.96 4.48 5.15 60 46 0.62 0.88 1.13 1.35 1.53 1.80 2.08 2.34 2.57 2.85 3.14 3.44 3.83 4.29 4.85 5.48 61 47 0.65 0.94 1.22 1.45 1.65 1.95 2.28 2.55 2.80 3.10 3.41 3.72 4.14 4.65 5.23 5.85 62 48 0.69 1.01 1.31 1.56 1.76 2.11 2.49 2.77 3.03 3.37 3.67 4.01 4.47 5.03 5.66 6.25 63 49 0.72 1.07 1.40 1.66 1.88 2.26 2.69 2.99 3.26 3.63 3.93 4.31 4.82 5.44 6.14 6.82 64 50 0.75 1.14 1.49 1.77 1.99 2.41 2.88 3.19 3.48 3.88 4.19 4.62 5.19 5.89 6.67 7.52 65 51 0.78 1.19 1.57 1.87 2.10 2.54 3.05 3.37 3.68 4.13 4.46 4.95 5.58 6.36 7.24 8.24 66 52 0.81 1.24 1.66 1.97 2.20 2.66 3.21 3.55 3.87 4.37 4.73 5.28 5.98 6.86 7.86 9.01 67 53 0.85 1.30 1.75 2.09 2.32 2.79 3.38 3.74 4.08 4.61 5.02 5.64 6.42 7.40 8.54 9.80 68 54 0.89 1.37 1.87 2.23 2.47 2.95 3.56 3.93 4.29 4.87 5.34 6.04 6.91 8.01 9.30 10.59 69
*** CONTINENTAL ASSURANCE COMPANY *** SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 0.96 1.45 2.00 2.42 2.67 3.14 3.75 4.14 4.52 5.15 5.68 6.46 7.45 8.67 10.12 11.48 70 56 1.03 1.55 2.16 2.64 2.91 3.36 3.95 4.35 4.76 5.42 6.04 6.91 8.03 9.38 11.01 12.52 71 57 1.11 1.66 2.34 2.89 3.18 3.60 4.16 4.57 5.01 5.70 6.42 7.38 8.66 10.15 11.97 13.66 72 58 1.20 1.79 2.53 3.15 3.48 3.86 4.38 4.82 5.29 6.01 6.84 7.90 9.34 10.98 13.01 14.93 73 59 1.31 1.94 2.74 3.42 3.77 4.13 4.63 5.09 5.62 6.39 7.32 8.49 10.08 11.88 14.13 16.41 74 60 1.43 2.11 2.97 3.69 4.05 4.39 4.89 5.39 5.98 6.83 7.84 9.12 10.85 12.84 15.32 17.93 75 61 1.57 2.30 3.21 3.97 4.32 4.64 5.13 5.68 6.35 7.29 8.37 9.77 11.63 13.82 16.54 19.42 76 62 1.71 2.51 3.48 4.25 4.59 4.96 5.39 5.99 6.76 7.81 8.94 10.46 12.45 14.86 17.83 21.04 77 63 1.89 2.74 3.75 4.54 4.91 5.32 5.71 6.38 7.26 8.42 9.63 11.29 13.41 16.04 19.28 22.77 78 64 2.09 3.00 4.04 4.85 5.27 5.64 6.16 6.93 7.92 9.21 10.51 12.31 14.58 17.45 20.95 24.80 79 65 2.34 3.28 4.33 5.19 5.60 6.06 6.80 7.69 8.79 10.21 11.65 13.61 16.06 19.16 22.94 27.13 80 66 2.65 3.58 4.64 5.54 5.98 6.72 7.62 8.66 9.89 11.45 13.07 15.20 17.84 21.19 25.27 29.59 81 67 2.98 3.90 4.95 5.91 6.59 7.54 8.58 9.78 11.16 12.86 14.68 17.00 19.86 23.45 27.83 32.11 82 68 3.34 4.25 5.29 6.30 7.27 8.35 9.59 10.98 12.50 14.34 16.38 18.89 21.98 25.82 30.51 34.74 83 69 3.68 4.61 5.65 6.73 7.89 9.16 10.58 12.16 13.84 15.83 18.07 20.77 24.09 28.17 33.16 37.53 84 70 4.01 5.00 6.04 7.20 8.54 9.94 11.52 13.29 15.14 17.26 19.70 22.57 26.12 30.40 35.70 40.36 85 71 4.31 5.42 6.46 7.71 9.23 10.71 12.42 14.40 16.42 18.67 21.28 24.31 28.09 32.55 38.12 43.31 86 72 4.61 5.87 6.90 8.25 9.96 11.48 13.32 15.50 17.72 20.08 22.86 26.04 30.06 34.68 49.53 46.19 87 73 4.92 6.32 7.36 8.82 10.72 12.26 14.22 16.62 19.03 21.52 24.47 27.82 32.07 36.87 43.02 48.80 88 74 5.23 6.78 7.85 9.41 11.48 13.07 15.16 17.76 20.36 22.98 26.13 29.66 34.18 39.21 45.71 51.41 89 75 5.57 7.24 8.34 10.01 12.25 13.92 16.14 18.93 21.72 24.49 27.83 31.58 36.41 41.73 48.65 54.63 90 76 5.91 7.70 8.86 10.63 13.03 14.78 17.15 20.13 23.10 26.04 29.59 33.58 38.74 44.40 51.79 59.06 91 77 6.27 8.17 9.39 11.28 13.82 15.68 18.19 21.35 24.50 27.62 31.38 35.64 41.15 47.20 55.10 65.00 92 78 6.64 8.64 9.95 11.94 14.62 16.60 19.25 22.59 25.93 29.23 33.21 37.77 43.65 50.14 58.59 72.25 93 79 7.15 9.29 10.69 12.76 15.66 17.72 20.52 24.06 27.46 30.82 35.07 40.21 46.99 54.44 63.83 80.60 94 80 7.82 10.13 11.60 13.81 16.92 19.05 22.02 25.66 29.0l 32.47 37.27 43.47 51.71 60.51 71.20 90.07 95 81 8.53 10.99 12.55 14.92 18.19 20.44 23.49 27.11 30.56 34.51 40.30 47.84 57.48 67.50 79.56 100.64 96 82 9.26 11.89 13.56 16.04 19.52 21.81 24.82 28.56 32.48 37.31 44.35 53.18 64.12 75.43 88.90 112.32 97 83 10.02 12.85 14.58 17.21 20.82 23.04 26.14 30.35 35.11 41.06 49.29 59.32 71.65 84.23 99.22 125.11 98 84 10.82 13.81 15.65 18.36 22.00 24.27 27.78 32.81 38.64 45.64 54.99 66.29 80.06 94.06 110.51 140.02 99
*** CONTINENTAL ASSURANCE C0MPANY *** NON-SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 0.85 0.89 0.93 0.95 0.95 0.93 0.91 0.91 0.92 0.94 0.95 0.97 0.99 1.02 1.06 1.12 35 21 0.30 0.84 0.89 0.91 0.90 0.89 0.88 0.89 0.91 0.93 0.95 0.97 1.01 1.06 1.12 1.19 36 22 0.77 0.80 0.87 0.87 0.86 0.86 0.86 0.88 0.92 0.94 0.97 1.00 1.05 1.12 1.19 1.29 37 23 0.74 0.77 0.84 0.85 0.84 0.85 0.85 0.88 0.93 0.97 1.00 1.05 1.11 1.19 1.29 1.42 38 24 0.71 0.75 0.82 0.83 0.82 0.84 0.86 0.90 0.96 1.00 1.05 1.11 1.18 1.28 1.41 1.56 39 25 0.70 0.74 0.81 0.82 0.82 0.85 0.87 0.93 1.00 1.05 1.11 1.18 1.28 1.41 1.55 1.70 40 26 0.69 0.73 0.81 0.82 0.84 0.87 0.90 0.97 1.04 1.10 1.18 1.28 1.41 1.55 1.69 1.85 41 27 0.69 0.74 0.82 0.84 0.86 0.90 0.95 1.02 1.10 1.18 1.27 1.41 1.54 1.67 1.84 2.02 42 28 0.70 0.75 0.83 0.86 0.90 0.94 1.00 1.09 1.18 1.27 1.40 1.54 1.66 1.81 2.00 2.21 43 29 0.70 0.76 0.84 0.88 0.94 0.98 1.07 1.16 1.27 1.40 1.54 1.65 1.80 1.97 2.19 2.41 44 30 0.70 0.77 0.86 0.91 0.97 1.04 1.13 1.24 1.38 1.53 1.65 1.79 1.96 2.17 2.40 2.63 45 31 0.70 0.77 0.88 0.94 1.01 1.09 1.20 1.34 1.49 1.64 1.78 1.95 2.16 2.39 2.62 2.87 46 32 0.71 0.78 0.90 0.97 1.06 1.16 1.27 1.44 1.62 1.77 1.94 2.16 2.39 2.61 2.86 3.15 47 33 0.72 0.79 0.92 1.01 1.11 1.24 1.37 1.55 1.76 1.93 2.15 2.38 2.60 2.84 3.14 3.47 48 34 0.73 0.81 0.96 1.07 1.18 1.33 1.48 1.68 1.92 2.14 2.38 2.59 2.84 3.12 3.45 3.86 49 35 0.74 0.85 1.01 1.14 1.27 1.45 1.61 1.84 2.11 2.37 2.58 2.83 3.11 3.43 3.79 4.28 50 36 0.76 0.90 1.08 1.23 1.37 1.59 1.77 2.02 2.31 2.57 2.81 3.09 3.41 3.76 4.18 4.71 51 37 0.79 0.95 1.15 1.34 1.49 1.74 1.96 2.22 2.52 2.79 3.07 3.38 3.71 4.11 4.59 5.18 52 38 0.82 1.01 1.24 1.46 1.63 1.91 2.15 2.43 2.75 3.04 3.35 3.68 4.03 4.52 5.07 5.73 53 39 0.85 1.08 1.33 1.59 1.77 2.09 2.36 2.66 3.00 3.33 3.65 3.99 4.42 4.99 5.62 6.37 54 40 0.89 1.16 1.44 1.72 1.92 2.28 2.56 2.89 3.25 3.63 3.96 4.36 4.88 5.52 6.27 7.15 55 41 0.94 1.24 1.56 1.87 2.09 2.45 2.77 3.13 3.49 3.90 4.29 4.77 5.38 6.12 6.99 8.08 56 42 1.00 1.33 1.68 2.02 2.27 2.64 2.98 3.37 3.75 4.17 4.64 5.22 5.92 6.77 7.78 9.13 57 43 1.06 1.43 1.82 2.18 2.46 2.85 3.22 3.65 4.04 4.48 5.04 5.72 6.54 7.51 8.66 10.26 58 44 1.12 1.54 1.98 2.37 2.68 3.09 3.51 3.98 4.38 4.86 5.52 6.30 7.24 8.34 9.65 11.41 59 45 1.20 1.67 2.16 2.58 2.92 3.38 3.87 4.33 4.78 5.35 6.09 6.98 8.06 9.30 10.75 12.58 60 46 1.28 1.82 2.35 2.81 3.18 3.72 4.24 4.72 5.28 5.98 6.74 7.77 8.97 10.37 11.98 13.82 61 47 1.37 1.99 2.57 3.05 3.48 4.10 4.63 5.21 5.92 6.57 7.47 8.63 9.98 11.54 13.30 15.24 62 48 1.47 2.17 2.80 3.32 3.78 4.49 5.21 5.83 6.51 7.16 8.26 9.56 11.05 12.80 14.72 16.86 63 49 1.57 2.34 3.04 3.61 4.11 4.90 5.82 6.46 7.05 7.85 9.07 10.53 12.18 14.11 16.23 18.65 64 50 1.67 2.52 3.29 3.91 4.45 5.30 6.33 7.02 7.65 8.54 9.90 11.51 13.32 15.44 17.80 20.54 65 51 1.76 2.68 3.54 4.22 4.78 5.69 6.83 7.56 8.24 9.24 10.73 12.50 14.49 16.79 19.43 22.49 66 52 1.85 2.83 3.80 4.53 5.12 6.07 7.34 8.11 8.84 9.97 11.60 13.53 15.71 18.19 21.13 24.54 67 53 1.97 3.01 4.09 4.89 5.52 6.49 7.87 8.70 9.49 10.74 12.52 14.62 17.00 19.69 22.97 26.64 68 54 2.12 3.24 4.44 5.32 5.99 7.01 8.46 9.34 10.20 11.58 13.52 15.81 18.42 21.36 24.99 28.77 69
*** CONTINENTAL ASSURANCE COMPANY *** NON-SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED STANDARD MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 2.32 3.52 4.87 5.83 6.57 7.63 9.11 10.05 10.99 12.49 14.60 17.08 19.93 23.17 27.17 31.19 70 56 2.55 3.85 5.37 6.41 7.24 8.36 9.81 10.80 11.83 13.44 15.73 18.40 21.50 25.08 29.44 34.02 71 57 2.81 4.22 5.93 7.04 7.99 9.16 10.56 11.60 12.72 14.46 16.91 19.79 23.16 27.11 31.86 37.11 72 58 3.11 4.63 6.54 7.75 8.80 10.02 11.36 12.47 13.71 15.58 18.23 21.33 25.02 29.39 34.59 40.46 73 59 3.46 5.11 7.20 8.52 9.65 10.91 12.22 13.42 14.82 16.86 19.73 23.11 27.18 32.04 37.77 44.17 74 60 3.85 5.65 7.92 9.38 10.54 11.77 13.09 14.42 16.03 18.30 21.39 25.11 29.66 35.09 41.48 48.57 75 61 4.26 6.25 8.70 10.33 11.46 12.58 14.11 15.59 17.25 19.81 23.16 27.26 32.40 38.50 45.66 53.73 76 62 4.72 6.90 9.53 11.36 12.24 13.77 15.38 16.64 18.57 21.46 25.07 29.61 35.41 42.24 50.26 59.43 77 63 5.24 7.62 10.39 12.06 13.45 15.14 16.24 17.71 20.14 23.38 27.30 32.29 38.78 46.37 55.32 65.67 78 64 5.84 8.38 11.27 13.14 14.79 15.98 17.21 19.36 22.12 25.72 29.98 35.45 42.59 50.94 60.86 72.30 79 65 6.56 9.18 12.15 14.56 15.70 16.99 19.05 21.55 24.65 28.62 33.27 39.21 46.94 56.04 66.94 78.96 80 66 7.42 10.04 13.01 15.57 16.83 18.87 21.38 24.29 27.76 32.12 37.20 43.62 51.85 61.67 73.60 85.54 81 67 8.37 10.94 13.89 16.60 18.54 21.14 24.03 27.42 31.28 36.04 41.61 48.51 57.22 67.77 80.76 92.66 82 68 9.35 11.98 14.82 17.67 20.39 23.39 26.84 30.74 35.00 40.17 46.26 53.66 62.90 74.19 88.29 100.51 83 69 10.31 12.92 15.81 18.84 22.08 25.64 29.61 34.03 38.74 44.30 50.92 58.87 68.71 80.77 96.04 109.08 84 70 11.2l 14.01 16.90 20.15 23.89 27.82 32.23 37.20 42.36 48.30 55.47 64.01 74.60 87.45 103.96 118.49 85 71 12.07 15.18 18.07 21.57 25.83 29.96 34.76 40.28 45.95 52.23 59.97 69.14 80.61 94.29 112.09 128.71 86 72 12.91 16.41 19.31 23.09 27.87 32.11 37.26 43.37 49.58 56.19 64.52 74.36 86.80 101.32 120.47 139.71 87 73 13.76 17.69 20.60 24.68 29.98 34.31 39.80 46.49 53.25 60.20 69.15 79.68 93.14 108.55 129.09 150.28 88 74 14.64 18.97 21.95 26.33 32.12 36.57 42.43 49.69 56.98 64.31 73.88 85.13 99.61 115.95 137.92 158.91 89 75 15.57 20.26 23.35 28.02 34.28 38.93 45.17 52.97 60.78 68.54 78.74 90.73 106.19 123.54 146.95 166.61 90 76 16.54 21.55 24.79 29.76 36.45 41.36 47.99 56.32 64.65 72.87 83.72 96.45 112.90 131.31 156.20 173.59 91 77 17.54 22.86 26.29 31.55 38.67 43.87 50.89 59.73 68.56 77.29 88.79 102.29 119.75 139.27 165.66 181.60 92 78 18.57 24.19 27.83 33.41 40.92 46.44 53.87 63.21 72.54 81.79 93.96 108.26 126.73 147.40 175.33 194.20 93 79 20.03 25.93 29.77 35.82 43.81 49.80 57.77 67.73 77.71 86.90 98.91 113.99 132.56 155.80 187.57 209.55 94 80 21.87 28.09 32.25 38.85 47.55 54.10 62.75 73.57 83.58 91.89 103.70 118.77 138.67 166.62 202.40 222.10 95 81 23.70 30.43 34.98 42.16 51.65 58.76 68.11 79.13 88.39 96.34 108.05 124.25 148.30 179.79 214.52 233.61 96 82 25.67 31.01 37.96 45.80 56.11 63.79 73.26 83.68 92.67 100.38 113.03 132.87 160.02 190.56 225.64 245.78 97 83 27.84 35.82 41.24 49.75 60.90 68.61 77.47 87.73 96.55 105.81 120.87 143.37 169.61 200.43 237.39 256.82 98 84 30.22 38.91 44.79 54.00 65.51 72.55 81.22 91.41 10l.0l 112.29 130.43 151.96 178.40 210.88 248.06 278.80 99
*** CONTINENTAL ASSURANCE C0MPANY *** NON-SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 20 0.19 0.20 0.21 0.21 0.21 0.21 0.21 0.20 0.21 0.21 0.21 0.22 0.22 0.23 0.24 0.25 35 21 0.18 0.19 0.20 0.20 0.20 0.20 0.20 0.20 0.21 0.21 0.21 0.22 0.23 0.24 0.25 0.27 36 22 0.17 0.18 0.19 0.20 0.19 0.19 0.19 0.20 0.21 0.21 0.22 0.23 0.24 0.25 0.27 0.29 37 23 0.17 0.17 0.19 0.19 0.19 0.19 0.19 0.20 0.21 0.22 0.23 0.24 0.25 0.27 0.29 0.32 38 24 0.16 0.17 0.18 0.19 0.18 0.19 0.19 0.20 0.22 0.23 0.24 0.25 0.27 0.29 0.32 0.35 39 25 0.16 0.17 0.18 0.18 0.18 0.19 0.20 0.21 0.22 0.24 0.25 0.27 0.29 0.32 0.35 0.38 40 26 0.16 0.16 0.18 0.18 0.19 0.19 0.20 0.22 0.23 0.25 0.27 0.29 0.32 0.35 0.38 0.42 41 27 0.16 0.17 0.18 0.19 0.19 0.20 0.21 0.23 0.25 0.27 0.29 0.32 0.35 0.38 0.41 0.46 42 28 0.16 0.17 0.19 0.19 0.20 0.21 0.23 0.24 0.27 0.29 0.32 0.35 0.37 0.41 0.45 0.50 43 29 0.16 0.17 0.19 0.20 0.21 0.22 0.24 0.26 0.29 0.32 0.35 0.37 0.40 0.44 0.49 0.54 44 30 0.16 0.17 0.19 0.20 0.22 0.23 0.25 0.28 0.31 0.34 0.37 0.40 0.44 0.49 0.54 0.59 45 31 0.16 0.17 0.20 0.21 0.23 0.25 0.27 0.30 0.34 0.37 0.40 0.44 0.49 0.54 0.59 0.65 46 32 0.16 0.18 0.20 0.22 0.24 0.26 0.29 0.32 0.36 0.40 0.44 0.49 0.54 0.59 0.64 0.71 47 33 0.16 0.18 0.21 0.23 0.25 0.28 0.31 0.35 0.40 0.43 0.48 0.54 0.59 0.64 0.71 0.78 48 34 0.16 0.18 0.22 0.24 0.27 0.30 0.33 0.38 0.43 0.48 0.53 0.58 0.64 0.70 0.78 0.87 49 35 0.17 0.19 0.23 0.26 0.28 0.33 0.36 0.41 0.47 0.53 0.58 0.64 0.70 0.77 0.85 0.96 50 36 0.17 0.20 0.24 0.28 0.31 0.36 0.40 0.45 0.52 0.58 0.63 0.69 0.77 0.85 0.94 1.06 51 37 0.18 0.21 0.26 0.30 0.34 0.39 0.44 0.50 0.57 0.63 0.69 0.76 0.83 0.92 1.03 1.17 52 38 0.18 0.23 0.28 0.33 0.37 0.43 0.48 0.55 0.62 0.68 0.75 0.83 0.91 1.02 1.14 1.29 53 39 0.19 0.24 0.30 0.36 0.40 0.47 0.53 0.60 0.67 0.75 0.82 0.90 1.00 1.12 1.27 1.43 54 40 0.20 0.26 0.32 0.39 0.43 0.51 0.58 0.65 0.73 0.82 0.89 0.98 1.10 1.24 1.41 1.61 55 41 0.21 0.28 0.35 0.42 0.47 0.55 0.62 0.70 0.79 0.88 0.97 1.07 1.21 1.38 1.57 1.82 56 42 0.22 0.30 0.38 0.45 0.51 0.59 0.67 0.76 0.84 0.94 1.04 1.17 1.33 1.52 1.75 2.05 57 43 0.24 0.32 0.41 0.49 0.55 0.64 0.72 0.82 0.91 1.01 1.13 1.29 1.47 1.69 1.95 2.31 58 44 0.25 0.35 0.45 0.53 0.60 0.70 0.79 0.90 0.99 1.09 1.24 1.42 1.63 1.88 2.17 2.57 59 45 0.27 0.38 0.49 0.58 0.66 0.76 0.87 0.97 1.08 1.20 1.37 1.57 1.81 2.09 2.42 2.83 60 46 0.29 0.41 0.53 0.63 0.72 0.84 0.95 1.06 1.19 1.34 1.52 1.75 2.02 2.33 2.69 3.11 61 47 0.31 0.45 0.58 0.69 0.78 0.92 1.04 1.17 1.33 1.48 1.68 1.94 2.25 2.60 2.99 3.43 62 48 0.33 0.49 0.63 0.75 0.85 1.01 1.17 1.31 1.46 1.61 1.86 2.15 2.49 2.88 3.31 3.79 63 49 0.35 0.53 0.68 0.81 0.92 1.10 1.31 1.45 1.59 1.77 2.04 2.37 2.74 3.17 3.65 4.20 64 50 0.37 0.57 0.74 0.88 1.00 1.19 1.43 1.58 1.72 1.92 2.23 2.59 3.00 3.47 4.01 4.62 65 51 0.40 0.60 0.80 0.95 1.07 1.28 1.54 1.70 1.85 2.08 2.41 2.81 3.26 3.78 4.37 5.06 66 52 0.42 0.64 0.85 1.02 1.15 1.37 1.65 1.83 1.99 2.24 2.61 3.04 3.53 4.09 4.75 5.52 67 53 0.44 0.68 0.92 1.10 1.24 1.46 1.77 1.96 2.13 2.42 2.82 3.29 3.83 4.43 5.17 5.99 68 54 0.48 0.73 1.00 1.20 1.35 1.58 1.90 2.10 2.30 2.61 3.04 3.56 4.14 4.81 5.62 6.47 69
*** CONTINENTAL ASSURANCE C0MPANY *** NON-SMOKER Y.R.T. RATES PER $1,000
NON-EXPERIENCE RATED SUBSTANDARD - PER TABLE MALE - AGE LAST BIRTHDAY ISSUE POLICY YEAR ATT'D AGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16+ AGE 55 0.52 0.79 1.10 1.31 l.48 1.72 2.05 2.26 2.47 2.81 3.29 3.84 4.48 5.21 6.11 7.02 70 56 0.57 0.87 1.21 1.44 1.63 1.88 2.21 2.43 2.66 3.02 3.54 4.14 4.84 5.64 6.62 7.65 71 57 0.63 0.95 1.33 1.58 1.80 2.06 2.38 2.61 2.86 3.25 3.81 4.45 5.21 6.10 7.17 8.35 72 58 0.70 1.04 1.47 1.74 1.98 2.25 2.56 2.81 3.09 3.50 4.10 4.80 5.63 6.61 7.78 9.10 73 59 0.78 1.15 1.62 1.92 2.17 2.45 2.75 3.02 3.34 3.79 4.44 5.20 6.12 7.21 8.50 9.94 74 60 0.87 1.27 1.78 2.11 2.37 2.65 2.95 3.25 3.61 4.12 4.81 5.65 6.67 7.90 9.33 10.93 75 61 0.96 1.41 1.96 2.32 2.58 2.83 3.17 3.51 3.88 4.46 5.21 6.13 7.29 8.66 10.27 12.09 76 62 1.06 1.55 2.14 2.56 2.75 3.10 3.46 3.71 4.18 4.83 5.64 6.66 7.97 9.50 11.31 13.37 77 63 1.18 1.71 2.34 2.71 3.03 3.41 3.65 3.99 4.53 5.26 6.14 7.27 8.72 10.43 12.45 14.78 78 64 1.31 1.89 2.54 2.96 3.33 3.60 3.87 4.36 4.98 5.79 6.74 7.93 9.58 11.46 13.69 16.27 79 65 1.48 2.07 2.73 3.27 3.53 3.82 4.29 4.85 5.55 6.44 7.49 8.82 10.56 12.61 15.06 17.77 80 66 1.67 2.26 2.93 3.50 3.79 4.25 4.81 5.47 6.25 7.23 8.37 9.81 11.67 13.88 16.56 19.25 81 67 1.88 2.46 3.13 3.73 4.17 4.76 5.41 6.17 7.04 8.11 9.36 10.91 12.88 15.25 18.17 20.85 82 68 2.10 2.68 3.33 3.98 4.59 5.26 6.04 6.92 7.88 9.04 10.41 12.07 14.15 16.69 19.86 22.61 83 69 2.32 2.91 3.56 4.24 4.97 5.77 6.66 7.66 8.72 9.97 11.46 13.25 15.46 18.17 21.61 24.54 84 70 2.52 3.15 3.80 4.53 5.38 6.26 7.25 8.37 9.53 10.87 12.48 14.40 16.78 19.68 23.39 26.66 85 71 2.72 3.41 4.06 4.85 5.81 6.74 7.82 9.06 10.34 11.75 13.49 15.56 18.14 21.22 25.22 28.96 86 72 2.90 3.69 4.34 5.20 6.27 7.23 8.38 9.76 11.15 12.64 14.52 16.73 19.53 22.80 27.11 31.43 87 73 3.10 3.98 4.64 5.55 6.75 7.72 8.96 10.46 11.98 13.55 15.56 17.93 20.96 24.42 29.04 33.81 88 74 3.29 4.27 4.94 5.92 7.23 8.23 9.55 11.18 12.82 14.47 16.62 19.16 22.41 26.09 31.03 35.75 89 75 3.50 4.56 5.25 6.30 7.71 8.76 10.16 11.92 13.68 15.42 17.72 20.41 23.89 27.80 33.06 37.49 90 76 3.72 4.85 5.58 6.70 8.20 9.31 10.80 12.67 14.55 16.40 18.84 21.70 25.40 29.54 35.14 39.06 91 77 3.95 5.14 5.91 7.10 8.70 9.87 11.45 13.44 15.43 17.39 19.98 23.02 26.94 31.33 37.27 40.86 92 78 4.18 5.44 6.26 7.52 9.21 10.45 12.12 14.22 16.32 18.40 21.14 24.36 28.51 33.17 39.45 43.69 93 79 4.51 5.83 6.70 8.06 9.86 11.21 13.00 15.25 17.48 19.55 22.25 25.65 29.83 35.06 42.20 47.15 94 80 4.92 6.32 7.26 8.74 10.70 12.17 14.12 16.55 18.81 20.67 23.33 26.72 31.20 37.49 45.54 49.97 95 81 5.33 6.85 7.87 9.49 11.62 13.22 15.32 17.80 19.89 21.68 24.31 27.96 33.37 40.45 48.27 52.56 96 82 5.78 7.43 8.54 10.31 12.62 14.35 16.48 18.83 20.85 22.58 25.43 29.90 36.01 42.88 50.77 55.30 97 83 6.26 8.06 9.28 11.19 13.70 15.44 17.43 19.74 21.72 23.63 27.20 32.26 38.16 45.10 53.41 57.79 98 84 6.80 8.76 10.08 12.15 14.74 16.32 18.28 20.57 22.73 25.27 29.35 34.19 40.14 47.45 55.81 62.73 99
SCHEDULE F CONDITIONAL RECEIPT APPROVAL SCHEDULE The Ceding Company's Conditional Receipt Notice, shown as F-1 is approved by the Reinsurer. BY: /s/ ---------------------------------- DATE: January 19, 1999 -------------------------------- - -------------------------------------------------------------------------------- CONDITIONS RELATING TO THIS APPLICATION / NOTICES - -------------------------------------------------------------------------------- The Proposed insured and the Applicant, if other than the Proposed insured represent that all statements and answers contained in this application are complete and true and are offered as consideration for the insurance applied for, it is expressly agreed that: 1. The company is authorized to amend this application by an appropriate notation in the space designated HOME OFFICE ADDITIONS AND CORRECTIONS in order to correct any apparent errors or omissions. However, no change in age at issue, plan of insurance, amount, risk classification, or benefits shall be effective unless agreed to in writing by the Proposed insured and the Applicant * other than the Proposed insured. The acceptance of any policy issued as a result of this application shall constitute an acceptance of such amendments as well as the acceptance of the beneficiary designation, ownership, and method of payment of the proceeds of such policy. 2. The initial premium payment is held by the Company in its general account while your application is being considered. During this time no earnings are credited to an Account for you, if your application is accepted, the premium will be transferred to the Variable Fund Accounts as provided in the policy. 3. The company shall incur no liability under this application prior to delivery of the policy unless and until all conditions expressed hereafter are met: (a) an amount equal to the first full premium for the method of payment you selected is received by the company, and (b) all underwriting requirements, including any medical examinations required by the company's rules are complete. If the Proposed insured is an acceptable risk for insurance exactly as applied for whithout modification of plan, premium rate, or amount of insurance under the company's rules and practices, than the insurance under the policy applied for shall become effective on the latest of: the date the company receives the application, the date of completion of all underwriting requirements, or any date of issue requested in the application. If any of the above conditions are not met, the liability of the company shall be limited to the return of the premium submitted. Prior to delivery of the policy, the company's maximum liability under this application shall not exceed $200,000, including Accidental Death Benefit. B [LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY -------------------------------------------------------------- November 27, 2000 Joseph J. Atamaniuk, MBA, FLMI Vice President, Reinsurance Sales Continental Assurance Company CNA Plaza Chicago, IL 60685-0001 Dear Joe: In an effort to continually improve and streamline our self-administration reinsurance process, USAA has developed a standard waiver of premium claim form (see attachment). This form is similar in content, wording, and overall design to the death claim form, which you have reviewed and approved. For your convenience, I have included the death claim form and the signed approval letter, dated 7-25-2000, as attachments too. If you agree with the design and scope of the waiver of premium form, please sign and date in the spaces indicated below and return the duplicated copy to my attention. Thank you for your assistance on this matter. USAA Life Insurance Company Continental Assurance Company /s/ Allen R. Pierce /s/ Joseph J. Atamaniuk - ------------------------------- ------------------------------- Signature Signature Allen R. Pierce, VP Actuary Joseph J. Atamaniuk, AVP - ------------------------------- ------------------------------- Name & Title Name & Title November 27, 2000 December 15, 2000 - ------------------------------- ------------------------------- Date Date [LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY USAA LIFE INSURANCE COMPANY OF NEW YORK REINSURANCE WAIVER OF PREMIUM CLAIM FORM ---------------------------------------- - -------------------------------------------------------------------------------- I. CLAIM DATA - -------------------------------------------------------------------------------- REINSURANCE COMPANY: Continental Assurance Company STATUS ----------------------------- INSURED: ________________________________________ [ ] INCONTESTABLE DATE OF BIRTH: __________________________________ [ ] CONTESTABLE DATE OF DISABILITY: _____________________________ [ ] UNDER INVESTIGATION CAUSE OF DISABILITY: ____________________________ [ ] SETTLED DATE BENEFITS EXPIRE:____________________________ CLAIM TYPE: [ ] ACCIDENT [ ] SICKNESS DIAGNOSIS: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- II. NOTIFICATION - -------------------------------------------------------------------------------- [ ] PRELIMINARY [ ] PERIODIC [ ] NOTIFICATION OF CONTEST/ [ ] REQUEST FOR NOTICE REVIEW COMPROMISE/*LITIGATION PAYMENT - -------------------------------------------------------------------------------- POLICIES ISSUED AS A RESULT OF EXCHANGE OR REPLACEMENT OF OTHER USAA LIFE INSURANCE COVERAGE: [ ] YES IF YES, PLEASE PROVIDE ORIGINAL POLICY DATE: ORIGINAL $: THE FOLLOWING INFORMATION: [ ] NO POLICY #s: POLICY #s: POLICY #s: - -------------------------------------------------------------------------------- *This claim form is notification of USAA's Intention to contest, compromise, or litigate a claim in accordance with the treaty terms. Unless Reinsurer notifies USAA Life, in writing, that it declines to be a party to such action, Reinsurer will pay its share of any settlement up to the maximum that would have been payable under the specific policy plus its share of specific expenses and damages, if any, in connection with the contest, compromise, or litigation. For incontestable claims, we will process all requirements and proceed with claim payment unless notified otherwise as specified in the provision of the Reinsurance Treaty. - -------------------------------------------------------------------------------- Policy Number Date of Face Amount Date of Reinstatement Amount of Issue Termination Date Reinsurance - -------------- -------- ------------ ----------- ------------- ------------ ______________ ________ ____________ ___________ _____________ ____________ ______________ ________ ____________ ___________ _____________ ____________ ______________ ________ ____________ ___________ _____________ ____________ Total Issued: ____________ Amount reinsured w/Reinsurer:____________ Less Terminated: ____________ Amount w/other Reinsurers:____________ USAA Retention:____________ Amount in Force: ____________ TOTAL:____________ - -------------------------------------------------------------------------------- III. FINAL DISPOSITION/REQUEST FOR PAYMENT - -------------------------------------------------------------------------------- [ ] Claim has been [ ] Temporary WP benefit [ ] Permanent WP approved approved to _____ (date) benefit approved [ ] Claim Denied [ ] WP benefits ceased - contract provision _____ (date) [ ] Policy Rescinded [ ] WP continuance approved to _____ (date) - -------------------------------------------------------------------------------- Policy Number Annual Premium Amount Reinsured Amount - ---------------------- ------------------------------- ----------------------- ______________________ _______________________________ _______________________ ______________________ _______________________________ _______________________ ______________________ _______________________________ _______________________ ______________________ _______________________________ _______________________ Sub Total: _______________________ Investigation Expense: _______________________ Legal Expense: _______________________ TOTAL REQUESTED: _______________________ - -------------------------------------------------------------------------------- COMMENTS: - -------------------------------------------------------------------------------- INCONTESTABLE CLAIMS REQUIREMENTS: CONTESTABLE CLAIMS REQUIREMENTS: ---------------------------------- -------------------------------- - - Complete this form & attach proof IF CEDED FACULTATIVELY: of disability -Attach proof of disability, complete this form & investigation reports IF CEDED AUTOMATICALLY: -Attach proof of disability, complete this form, investigation reports & underwriting papers - -------------------------------------------------------------------------------- Date: Ceding Company Wire Information: Completed By: Cheryl Name: USAA --------------------- ------ Address: Attn: Reinsurance Nations Bank, Dallas Moczygemba ----------------- -------------------- ---------- Dept., F-2-E ABA #111000025 Title: Reinsurance ------------ -------------- ----------- 9800 Fredericksburg Account #7110373357 Specialist ------------------- ------------------- ---------- Rd. San Antonio. Account Name - USAA Phone#: 210-498-9248 ---------------- ------------------- ------------ TX 78288-0338 LIFE Fax#: 210-498-0338 ------------- ---- ------------ - -------------------------------------------------------------------------------- [LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY ------------------------------------------------------------ July 25, 2000 Joseph J. Atamaniuk, MBA, FLMI Vice President, Reinsurance Sales Continental Assurance Company (CNA) CNA Plaza Chicago, IL 60685-0001 RE: All existing treaties Dear Joe: Enclosed is the proposed standard claim form presented at the USAA Financial Conference, Reinsurance Breakout Session on May 8, 2000. Please take the time to carefully review the form, as changes have been made to the form discussed at the conference. Effective immediately, we intend that this form will be used for USAA Life to provide notice to CNA of the contest, compromise, or litigation of a claim, as required by the terms of the existing agreements. Unless USAA Life receives written notice from CNA in response that CNA does not consent to the contest, compromise, or litigation, USAA Life will assume that CNA consents to the contest, compromise, or litigation, and will reimburse USAA Life for CNA's portion of the associated liability and expenses in accordance with the terms of the existing agreements, including CNA's proportionate share of any compromise or settlement. If you agree with the above, please sign and date in the spaces indicated below and return the duplicated copy to us. USAA Life Insurance Company Continental Assurance Company /s/ Allen R. Pierce /s/ Joseph J. Atamaniuk - ------------------------------- ------------------------------- Signature Signature Allen R. Pierce, VP Actuary Joseph J. Atamaniuk, AVP - ------------------------------- ------------------------------- Name & Title Name & Title 7/27/2000 September 8, 2000 - ------------------------------- ------------------------------- Date Date [LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY USAA LIFE INSURANCE COMPANY OF NEW YORK REINSURANCE DEATH CLAIM FORM ---------------------------- - -------------------------------------------------------------------------------- I. CLAIM DATA - -------------------------------------------------------------------------------- REINSURANCE COMPANY: Continental Assurance STATUS --------------------- INSURED: ________________________________________ [ ] INCONTESTABLE DATE OF BIRTH: __________________________________ [ ] CONTESTABLE DATE OF DEATH: __________________________________ [ ] UNDER INVESTIGATION CAUSE OF DEATH: _________________________________ [ ] SETTLED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- II. NOTIFICATION - -------------------------------------------------------------------------------- POLICIES ISSUED AS A RESULT OF CONVERSION, EXCHANGE OR REPLACEMENT OF OTHER USAA LIFE INSURANCE COVERAGE: [ ] YES IF YES, PLEASE PROVIDE ORIGINAL POLICY DATE: ORIGINAL $: THE FOLLOWING INFORMATION: [ ] NO POLICY #s: POLICY #s: POLICY #s: - -------------------------------------------------------------------------------- *This claim form is notification of USAA's intention to contest, compromise, or litigate a claim in accordance with the treaty terms. Unless Reinsurer notifies USAA Life, in writing, that it declines to be a party to such action, Reinsurer will pay its share of any settlement up to the maximum that would have been payable under the specific policy plus its share of specific expenses and damages, if any, in connection with the contest, compromise, or litigation. For incontestable claims, we will process all requirements and proceed with claim payment unless notified otherwise. - -------------------------------------------------------------------------------- Date of Date of Reinstatement Amount of Policy Number Issue Face Amount Termination Date Reinsurance - -------------- ------- ----------- ----------- ------------- -------------- ______________ _______ ___________ ___________ _____________ ______________ ______________ _______ ___________ ___________ _____________ ______________ ______________ _______ ___________ ___________ _____________ ______________ ______________ _______ ___________ ___________ _____________ ______________ ______________ _______ ___________ ___________ _____________ ______________ Total Issued: _________ Amount reinsured w/Reinsurer: ____________ Less Terminated: _________ Amount w/other Reinsurers: ____________ USAA Retention: ____________ Amount in Force: _________ TOTAL: ____________ - -------------------------------------------------------------------------------- III. FINAL DISPOSITION/REQUEST FOR PAYMENT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Policy Number Reinsured Amount Interest Total - ------------------ ------------------------- ----------------- -------------- __________________ _________________________ _________________ ______________ __________________ _________________________ _________________ ______________ __________________ _________________________ _________________ ______________ __________________ _________________________ _________________ ______________ __________________ _________________________ _________________ ______________ Sub Total: ______________ Investigation Expense: ______________ INTEREST PAID AT _____% FOR_____DAYS. Legal Expense: ______________ TOTAL REQUESTED: ______________ - -------------------------------------------------------------------------------- INCONTESTABLE CLAIMS REQUIREMENTS: CONTESTABLE CLAIMS REQUIREMENTS: ---------------------------------- -------------------------------- - Complete this form & attach proof of death -Attach proof of death, complete this form & investigation reports -Attach proof of death, complete this form, investigation reports & underwriting papers - -------------------------------------------------------------------------------- Date: _________ Completed By: Cheryl Title: Reinsurance Specialist Ceding ------ ---------------------- Company Name: USAA Moczygemba Phone#: 210-498-9248 Fax#: 210-498 Address: ---- ---------- ------------ ------- -0338 Attn: Reinsurance ----- ----------------- Wire Information: Nations Bank, Dallas Dept., F-2-E -------------------- ------------ ABA #111000025 9800 Fredericksburg Rd. -------------- ----------------------- Account #7110373357 San Antonio, ------------------- ------------ Account Name- USAA TX 78288-0338 ------------------ ------------- LIFE ---- - -------------------------------------------------------------------------------- EX-3 5 e29675_ex3.txt YEARLY RENEWABLE TERM REINSURANCE AGREEMENT EFFECTIVE AS OF JUNE 1, 1998 BETWEEN USAA LIFE INSURANCE COMPANY OF SAN ANTONIO, TEXAS, REFERRED TO IN THIS AGREEMENT AS "USAA," AND THE LINCOLN NATIONAL LIFE INSURANCE COMPANY OF FORT WAYNE, INDIANA, REFERRED TO IN THIS AGREEMENT AS "LINCOLN." INSPECTED BY E/G ------------------ DATE 9/1/98 ------------------ DOC 981056SL.AGM ------------------ CCN/AGMT. NO. 2904 / 24 ------------------ TABLE OF CONTENTS Reinsurance Coverage 1 Automatic Reinsurance 1 Facultative Reinsurance 2 Continuations 3 Terms of Reinsurance 4 Payments by USAA 5 Payments by Lincoln 5 Reinsurance Administration 6 Settlement of Claims 6 Reinstatements 7 Reductions in Insurance 8 Increases in Policy Net Amount at Risk 8 Changes in Retention 8 Assignment of Reinsurance 9 Material Changes 10 Errors 10 Audits of Records and Procedures 10 Arbitration 10 Insolvency of USAA 11 Offset 11 Parties to the Agreement 12 Commencement and Termination 12 Entire Agreement 13 Deferred Acquisition Cost Tax Election 13 Definitions 13 Execution 16 LIFE BENEFITS SCHEDULE 17 ADMINISTRATION SCHEDULE 19 PREMIUM SCHEDULE 22 ARBITRATION SCHEDULE 24 ACCIDENTAL DEATH BENEFIT ADDENDUM 26 INCREASING POLICY ADDENDUM 28
REINSURANCE COVERAGE A. USAA agrees to cede, and Lincoln agrees to accept, reinsurance of the Policies specified in the Life Benefits Schedule. (The term "Policies" and certain other terms used in this Agreement are defined in the "Definitions" article.) B. The death benefits provided by the Policies are reinsured. Supplemental benefits are reinsured if and as specified in applicable Addenda. C. USAA agrees to either (1) cede reinsurance of a Policy to Lincoln as Automatic Reinsurance; (2) submit the Policy to Lincoln for consideration as Facultative Reinsurance; or (3) cede reinsurance of a Policy as a Continuation. AUTOMATIC REINSURANCE A. USAA agrees to cede the Reinsurance Amount of a Policy as Automatic Reinsurance if the following conditions are met: (1) It retains its Retention on the insured life when the Policy is issued; (2) It underwrites and issues the Policy in accordance with its normal individual life insurance underwriting rules and practices previously disclosed to Lincoln; (3) The sum of (a) and (b) does not exceed the sum of its Retention and the Automatic Limit, where (a) equals the amount of individual life insurance issued by USAA then in force on the insured life, or in the case of individual life insurance with increasing death benefits, the Ultimate Amount of such policies; and (b) equals the amount of life insurance currently being applied for from USAA, or in the case of individual life insurance with increasing death benefits, the Ultimate Amount; (4) The sum of (a) and (b) does not exceed the Participation Limit, where (a) equals the amount of individual life insurance then in force on the insured life in all companies, or in the case of individual life insurance with increasing death Page 1 benefits, the Ultimate Amount of such policies; and (b) equals the amount currently applied for on the insured life from all companies, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts; (5) It has not submitted a facultative application to Lincoln or any other insurance or reinsurance company for reinsurance of the current application; and (6) The Policy is not a Continuation. B. Policies issued pursuant to any special underwriting program adopted by USAA may be ceded as Automatic Reinsurance only with Lincoln's consent to reinsure such Policies. C. A Policy shall not be ceded as Automatic Reinsurance if the Reinsurance Amount of the Policy is less than the minimum cession amount specified in the Administration Schedule. FACULTATIVE REINSURANCE A. USAA agrees to submit Policies not satisfying the conditions for Automatic Reinsurance, and Policies which it does not wish to cede as Automatic Reinsurance, for consideration by Lincoln as Facultative Reinsurance. USAA may also submit for consideration as Facultative Reinsurance any individual life insurance issued on a Policy form that is not specified in the Life Benefits Schedule provided reinsurance terms and conditions are established and agreed upon by means of the Facultative Reinsurance application process. B. An application for Facultative Reinsurance shall be made in the manner set forth in the Administration Schedule. Copies of all information which USAA has pertaining to the insurability of the proposed insured, including written summaries of any such information which cannot be copied, shall accompany the application. C. Upon receipt of an application, Lincoln agrees to promptly examine the underwriting information and communicate (1) an offer to reinsure the Policy as applied for; (2) an offer to reinsure the Policy other than as applied for; Page 2 (3) an offer to reinsure the Policy subject to the satisfaction of additional underwriting requirements; (4) a request for additional underwriting information; or (5) its unwillingness to make an offer to reinsure the Policy. D. To accept an offer to reinsure made by Lincoln, USAA agrees to (1) satisfy any conditions stated in the offer to reinsure; and (2) follow the procedure for placing reinsurance into effect as specified in the Administration Schedule. E. USAA agrees to inform Lincoln immediately of any additional information pertaining to the insurability of a proposed insured which is brought to USAA's attention before the completion of the procedures for accepting Lincoln's offer to reinsure. Upon its receipt of such information, Lincoln may withdraw or modify its earlier offer to reinsure. F. The terms of an offer to reinsure shall supercede the terms of this Agreement to the extent of any conflicts between the parties. Otherwise, reinsurance of a Policy ceded as Facultative Reinsurance shall be in accordance with the terms of this Agreement. CONTINUATIONS A. If USAA issues a Continuation of a Policy within its normal continuation rules and practices, it agrees to reinsure the Continuation with Lincoln. Reinsurance shall continue (1) under the reinsurance agreement between USAA and Lincoln which provides reinsurance of the Policy form of the Continuation; or (2) under this Agreement if there is no such agreement. B. A Policy which is a Continuation of a Policy that was not previously reinsured with Lincoln may only be reinsured under this Agreement with the written consent of Lincoln and the original reinsurer. C. If the original Policy was ceded to Lincoln as Facultative Reinsurance and USAA approves an increase in the face amount of the Continuation based upon receipt of any new information pertaining to the insurability of the proposed insured, USAA agrees to submit the Continuation to Page 3 Lincoln for consideration as Facultative Reinsurance. In such case, Lincoln shall only be bound to reinsure the Continuation in accordance with its offer to reinsure the Continuation. D. Reinsurance at issue of the Continuation shall not exceed the Reinsured Net Amount at Risk of the original Policy immediately prior to the issuance of the Continuation. E. Premiums payable for reinsurance of a Continuation shall be calculated using the rate schedule applicable to the Policy form of the Continuation as specified in the Premium Schedule. If there is no rate schedule applicable to the Policy form of the Continuation, reinsurance premiums shall be payable using the rate schedule applicable to the original Policy. F. If the Continuation results in a change in the life status of the insured risk from a single-insured plan to a joint- or multiple-insured plan, Lincoln must consent to the Continuation. TERMS OF REINSURANCE A. The plan of reinsurance shall be yearly renewable term reinsurance of the Reinsured Net Amount at Risk of a Policy. B. Reinsurance of a Policy shall commence on the Policy date, except (1) in the case of Facultative Reinsurance, reinsurance shall commence on the Policy date only if Lincoln's offer to reinsure is the best offer of reinsurance received by USAA as determined by USAA's published reinsurance placement rules in effect as of such date; and (2) if a premium receipt is issued by USAA in connection with an application for the Policy, reinsurance shall commence prior to the Policy date only if and as specified in a Premium Receipt Addendum. C. USAA agrees not to use Lincoln's name in connection with the sale of the Policies. D. In no event shall reinsurance under this Agreement be in force with respect to a Policy unless the issuance and delivery of the Policy is in compliance with the laws of all applicable jurisdictions and USAA's corporate charter. E. USAA agrees to maintain reinsurance of a Policy in force in accordance with the terms of this Agreement for as long as its Policy remains in force. Page 4 PAYMENTS BY USAA A. USAA agrees to pay Lincoln premiums for reinsurance of a Policy equal to the appropriate rate specified in the Premium Schedule times the Reinsured Net Amount at Risk of the Policy. B. The Premium Schedule specifies other monetary amounts which USAA agrees to take into account when calculating the amount due Lincoln. C. Reinsurance premiums shall be due and payable as specified in the Administration Schedule. D. The payment of reinsurance premiums shall be a condition precedent to the liability of Lincoln under this Agreement. If reinsurance premiums are not paid when due, Lincoln may give USAA thirty (30) days' written notice of its intent to terminate reinsurance because of USAA's failure to pay reinsurance premiums. Reinsurance of all Policies having reinsurance premiums in arrears shall terminate as of the date to which reinsurance premiums had previously been paid unless all premiums in arrears are paid before the end of the thirty (30) day notice period. If reinsurance on any Policy terminates because of USAA's failure to pay reinsurance premiums, reinsurance of Policies with premiums subsequently becoming due shall automatically terminate as of the date on which new reinsurance premiums become due. E. So that Lincoln need not maintain deficiency reserves in connection with reinsurance premiums payable pursuant to this Agreement, the premium rates specified in the Premium Schedule shall only be guaranteed for one (1) Policy year. Nevertheless, Lincoln shall anticipate continuing to accept reinsurance on the basis of such rates for all Policies originally ceded pursuant to such rates. PAYMENTS BY LINCOLN A. Lincoln agrees to pay USAA the Reinsured Net Amount at Risk of any claim paid by USAA pursuant to a Policy in accordance with the "Settlement of Claims" article. B. Lincoln agrees to pay the Claims Ratio of any expenses incurred in connection with Policy claims except as set forth in the "Settlement of Claims" article. C. The Premium Schedule specifies other monetary amounts that Lincoln agrees to pay USAA pursuant to this Agreement. Page 5 REINSURANCE ADMINISTRATION The methods for placing reinsurance into effect, for paying reinsurance premiums, and for notifying Lincoln of Policy lapses, reinstatements, reductions, Continuations, increases in the Reinsured Net Amount at Risk; and of other changes affecting reinsurance shall be specified in the Administration Schedule. SETTLEMENT OF CLAIMS A. USAA agrees to give Lincoln prompt written notice of its receipt of any claim on a Policy and to keep Lincoln informed of any legal proceedings or settlement negotiations in connection with a claim. Copies of written materials relating to such claim, legal proceedings or negotiation shall be furnished to Lincoln upon request. B. USAA's obligation to provide notice of a claim on a Policy shall not be construed as a condition precedent to Lincoln's obligation to pay the claim. USAA's failure to provide notice shall be considered a breach of a promise which may entitle Lincoln to damages. C. USAA agrees to act in accord with its standard practices applicable to all claims in enforcing the terms and conditions of the Policies and with respect to the administration, negotiation, payment, denial or settlement of any claim or legal proceeding. D. Lincoln agrees to accept the good faith decision of USAA in payment or settlement of any claim for which Lincoln has received the required notice. Lincoln agrees to pay USAA the Reinsured Net Amount at Risk on which reinsurance premiums have been computed upon receiving proper evidence that USAA has paid a Policy claim. Payment of the Reinsured Net Amount at Risk on account of death shall be made in one (1) lump sum. E. Lincoln's liability shall include indemnification of the Claims Ratio of any expenses incurred by USAA in defending or investigating a Policy claim with the exception of (1) salaries of employees or other internal expenses of USAA; (2) routine investigative or administrative expenses; (3) expenses incurred in connection with a dispute arising out of conflicting claims of entitlement to proceeds of a Policy that USAA admits are payable; (4) any gratuitous payments made by USAA; and (5) any punitive damages awarded against USAA, and expenses incurred in connection with such Page 6 damages, that are based on the acts or omissions of USAA or its agents. F. Lincoln agrees to hold USAA harmless from certain expenses and liabilities that result from Lincoln's own acts or omissions as provided in this article. For this purpose, Lincoln agrees to indemnify USAA for Lincoln's equitable share of those punitive and exemplary damages awarded against USAA, and expenses incurred in connection with a claim for such damages, if (1) Lincoln actively participated in the acts or omissions, including the decision to deny a claim for Policy benefits; and (2) those acts or omissions serve as a material basis for the punitive or exemplary damages. Lincoln's equitable share shall be determined by an assessment of Lincoln's participation in the particular case. G. If USAA should contest or compromise any claim and the amount of USAA's liability is thereby reduced, Lincoln's liability shall be reduced by the Claims Ratio of the reduction. H. If USAA should recover monies from any third party in connection with or arising out of any Policy, USAA agrees to pay Lincoln the Claims Ratio of the recovery. I. If the amount of insurance provided by a Policy is increased or reduced because of a misstatement of age or sex, Lincoln's liability shall be increased or reduced by the Claims Ratio of the amount of the increase or reduction. J. If USAA pays interest on a claim, Lincoln agrees to pay the interest on the Reinsured Net Amount at Risk computed at the same rate and for the same period as that paid by USAA, but in no event later than the date the claim is finally adjudicated by USAA. K. If USAA is required to pay penalties and interest imposed automatically by statute, Lincoln shall indemnify USAA for the Claims Ratio of such penalties and interest. REINSTATEMENTS A. If USAA reinstates a lapsed Policy in accordance with the terms of the Policy and USAA's underwriting rules and practices, Lincoln agrees to reinstate reinsurance of the Policy automatically unless Lincoln's offer to reinsure the Policy specifies that reinsurance of the Policy may only be reinstated as Facultative Reinsurance. B. If USAA collects premiums in arrears from the policy-holder of a reinstated Policy, it agrees to pay Lincoln all corresponding reinsurance premiums in arrears in Page 7 connection with the reinstatement, plus Lincoln's Proportionate Share of any interest received by USAA in connection with the reinstatement. REDUCTIONS IN INSURANCE If individual life insurance on a life reinsured under this Agreement terminates, the Reinsurance Amount shall be reduced as specified in the Administration Schedule. INCREASES IN POLICY NET A. If the Policy Net Amount at Risk on a Policy AMOUNT AT RISK increases and the increase is subject to USAA's underwriting approval, the Reinsured Net Amount at Risk of the Policy shall only increase if the conditions of either the "Automatic Reinsurance" or "Facultative Reinsurance" articles are satisfied. B. If the Policy Net Amount at Risk on a Policy increases causing the Reinsured Net Amount at Risk to exceed the Reinsurance Amount, and the increase is not subject to USAA's underwriting approval, Lincoln agrees to accept a portion of such increases only if and as specified in a Increasing Policy Addendum. CHANGES IN RETENTION A. If USAA increases its Retention on new Policies, it agrees to notify Lincoln in writing within sixty (60) days of such increase. The notice shall specify the new Retention and the effective date thereof. B. Whenever USAA increases its Retention on new Policies, it also agrees to indicate in its notice whether it wishes to (1) continue its previous Retention on in force Policies; or (2) increase its Retention on in force Policies and recapture reinsurance. If USAA elects (2), USAA's new Retention on an in force Policy shall be calculated using the insured's age, mortality class, Policy form and country of residence at issue of the Policy. C. If USAA elects to increase its Retention on in force Policies pursuant to paragraph B, its new Retention for such Policies shall become effective on the later of (1) the reinsurance renewal date of the Policy first following the effective date of its new Retention for new Policies; and (2) the Policy anniversary date specified in the Administration Schedule. Page 8 If USAA fails to initiate recapture of reinsurance within one hundred eighty (180) days of when the first of its Policies becomes eligible for recapture, its election to recapture reinsurance shall be considered waived. D. If an in force Policy is subject to a waiver of premium claim on the date the Policy qualifies for a new Retention, the new Retention shall nonetheless become effective on such date for purposes of life reinsurance. E. USAA may only elect to increase its Retention on in force Policies if (1) it maintained a Retention greater than zero dollars ($0) at the time the Policy was issued and retained its Retention at such time; (2) it increases its Retention on all eligible in force Policies; and (3) it retains the insurance recaptured from Lincoln at its own risk without benefit of any proportional or nonproportional reinsurance other than catastrophe accident reinsurance. F. Notwithstanding the preceding, (1) the recapture of the Reinsurance Amount shall be limited to Lincoln's portion of all reinsurance ceded by USAA on the Policy; and (2) if USAA gives notice of its intent to increase its Retention on in force Policies within five (5) years following a merger with another insurance company or the date it accepts the Policies by means of an assignment, the new Retention applicable to such Policies shall be limited to one hundred fifty percent (150%) of the original reinsured's pre-merger or pre-assignment Retention. G. For purposes of this article, Continuations shall be considered issued on the issue date of the original Policy. ASSIGNMENT OF REINSURANCE If USAA sells, assumption reinsures or otherwise transfers the Policies to another insurer, it agrees to require that the other insurer assume all rights and obligations of USAA under this Agreement. Lincoln may object to any such transfer that would result in a material adverse economic impact to Lincoln. If Lincoln so objects, USAA and Lincoln agree to mutually calculate a termination charge that shall be paid by USAA to Lincoln upon the transfer and this Agreement shall be terminated with respect to all Policies transferred by USAA. Page 9 MATERIAL CHANGES A. USAA agrees to notify Lincoln in writing of any anticipated Material Change in any terms or conditions of the Policies, in USAA's underwriting rules and practices applicable to the Policies or in USAA's claims practices and procedures. B. In the event of a Material Change to the Policies, to USAA's underwriting rules and practices or to its claims practices and procedures, Lincoln may at its option (1) continue to reinsure the Policies under current terms; (2) reinsure Policies under modified terms to reflect the Material Change; or (3) consider future Policies as issued in a Policy form that is not reinsured under this Agreement. ERRORS A. Any Error by either USAA or Lincoln in the administration of reinsurance under this Agreement shall be corrected by restoring both USAA and Lincoln to the positions they would have occupied had no Error occurred. Any monetary adjustments made between USAA and Lincoln to correct an Error shall be without interest. B. When a party claims that an Error should be corrected pursuant to paragraph A, that party agrees to investigate whether other instances of the Error have also occurred and agrees to report its findings to the other party. AUDITS OF RECORDS A. Lincoln or USAA may audit, at any reasonable AND PROCEDURES time and at its own expense, all records and procedures relating to reinsurance under this Agreement. The party being audited agrees to cooperate in the audit, including providing any information requested by the other in advance of the audit. B. Upon request, USAA agrees to furnish Lincoln with copies of any underwriting information in USAA's files pertaining to a Policy. ARBITRATION A. If USAA and Lincoln cannot mutually resolve a dispute that arises out of or relates to this Agreement, the dispute shall be decided through arbitration as specified in the Arbitration Schedule. The arbitrators shall base their decision on the terms and conditions of this Agreement plus, as necessary, on the customs and practices of the insurance and reinsurance industry rather than solely on a strict interpretation of applicable law. There shall be no appeal from their decision, except that either party may Page 10 petition a court having jurisdiction over the parties and the subject matter to reduce the arbitrators' decision to judgement. B. The parties intend this article to be enforceable in accordance with the Federal Arbitration Act (9 U.S.C. [Sec][Sec]1 et seq.), including any amendments to that Act which are subsequently adopted. If either party refuses to submit to arbitration as required by paragraph A, the other party may request a United States Federal District Court to compel arbitration in accordance with the Federal Arbitration Act. Both parties consent to the jurisdiction of such court to enforce this article and to confirm and enforce the performance of any award of the arbitrators. INSOLVENCY OF USAA A. In the event of the insolvency of USAA and the appointment of a conservator, liquidator or statutory successor of USAA, reinsurance shall be payable to such conservator, liquidator or statutory successor on the basis of claims allowed against USAA by any court of competent jurisdiction or by the conservator, liquidator or statutory successor of USAA without diminution because of the insolvency of USAA or because such conservator, liquidator or statutory successor has failed to pay all or a portion of any claims. B. In the event of the insolvency of USAA, the conservator, liquidator or other statutory successor of USAA agrees to give Lincoln written notice of the pendency of a claim on a Policy within a reasonable time after such claim is filed in the insolvency proceeding. During the pendency of any such claim, Lincoln may investigate the claim and interpose in the proceeding where such claim is to be adjudicated in the name of USAA (its conservator, liquidator or statutory successor), but at its own expense, any defense or defenses which Lincoln may deem available to USAA or its conservator, liquidator or statutory successor. C. A percentage (calculated as one (1) minus the Claims Ratio) of the expense thus incurred by Lincoln shall be charged, subject to court approval, against USAA as part of the expense of liquidation. OFFSET Any debts or credits, matured or unmatured, liquidated or unliquidated, regardless of when they arose or were incurred, in favor of or against either USAA or Lincoln with respect to this Agreement or any other reinsurance Page 11 agreement between the parties, shall be offset and only the balance allowed or paid. If either USAA or Lincoln is then under formal insolvency proceedings, this right of offset shall be subject to the laws of the state exercising primary jurisdiction over such proceedings. PARTIES TO THE AGREEMENT This is an Agreement for indemnity reinsurance solely between USAA and Lincoln. The acceptance of reinsurance under this Agreement shall not create any right or legal relation whatever between Lincoln and an insured, policyholder, beneficiary or any other party to or under any Policy. COMMENCEMENT AND A. This Agreement shall be effective as of the TERMINATION date set forth on the cover page, except that USAA may issue a Policy dated as much as six (6) months prior to the Effective Date in order to save age of the applicant. B. Either USAA or Lincoln may terminate this Agreement for new reinsurance by giving ninety (90) days' written notice to the other party. In such case, USAA agrees to continue to cede, and Lincoln agrees to continue to accept, reinsurance in accordance with this Agreement of Policies issued prior to the expiration of the ninety (90) day period. All reinsurance that has been placed in effect prior to such date shall remain in effect in accordance with the terms of this Agreement, until the earlier of (1) the termination or expiration of the Policy; and (2) the termination of this Agreement pursuant to paragraphs C or D below. C. Reinsurance of a Policy shall terminate as of the reinsurance premium renewal date on which the Reinsured Net Amount at Risk for such Policy is less than the automatic termination amount specified in the Administration Schedule, provided the reinsurance has been in force for the period specified in the Administration Schedule. D. Lincoln may terminate all reinsurance under this Agreement in accordance with paragraph D of the "Payments by USAA" article if USAA fails to pay reinsurance premiums when due. Page 12 ENTIRE AGREEMENT A. This Agreement represents the entire agreement between USAA and Lincoln and supercedes any prior oral or written agreements between the parties regarding its subject matter. B. No modification of this Agreement shall be effective unless set forth in a written amendment executed by both parties. C. A waiver of a right created by this Agreement shall constitute a waiver only with respect to the particular circumstance for which it is given and not a waiver in any future circumstance. DEFERRED ACQUISITION A. Lincoln and USAA each acknowledge that it is COST TAX ELECTION subject to taxation under Subchapter "L" of the Internal Revenue Code of 1986 (the "Code"). B. With respect to this Agreement, Lincoln and USAA agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 1992, whereby: (1) Each party agrees to attach a schedule to its federal income tax return which identifies this Agreement for which the joint election under the Regulation has been made; (2) The party with net positive consideration, as defined in the Regulation promulgated under Code Section 848, for this Agreement for each taxable year, agrees to capitalize specified Policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(l); (3) Each party agrees to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency; and (4) This election shall be effective for the year that this Agreement was entered into and for all subsequent years that this Agreement remains in effect. DEFINITIONS A. AUTOMATIC LIMIT - the amount specified in the Life Benefits Schedule used to calculate the maximum Reinsurance Amount that may be ceded as Automatic Reinsurance. B. AUTOMATIC REINSURANCE - reinsurance satisfying certain conditions relating to the reinsurance as specified in the Agreement that is ceded to Lincoln without obtaining a specific offer to reinsure from Lincoln. Page 13 C. CLAIMS RATIO - the Reinsured Net Amount at Risk on which reinsurance premiums have been computed divided by the Policy Net Amount at Risk calculated as of the date of the last premium payment. D. CONTINUATION - a new Policy replacing a Policy or a change in an existing Policy issued or made either (1) in compliance with the terms of the Policy; or (2) without (a) the same new underwriting information USAA would obtain in the absence of the Policy; (b) a suicide exclusion or contestable period as long as those contained in other new issues of Policies; or (c) the payment of the same commissions in the first year that USAA would have paid in the absence of the original Policy. E. EFFECTIVE DATE - the date specified on the cover page on which this Agreement becomes binding on USAA and Lincoln. F. ERROR - any isolated deviation from the terms of this Agreement resulting from the act or omission of an employee of either USAA or Lincoln whose principal function relates to the administration of reinsurance, whether such deviation results from inadvertence or a mistake in judgment. "Error" shall not include any failure to comply with the terms of an offer of Facultative Reinsurance or any negligent or deliberate deviation from the terms of this Agreement. G. FACULTATIVE REINSURANCE - reinsurance that is ceded to Lincoln only after USAA has obtained and accepted a specific offer to reinsure made by Lincoln. Such reinsurance may be ceded to Lincoln only upon the terms specified by Lincoln in its offer to reinsure and the terms of this Agreement that do not conflict with the specific offer to reinsure. H. LINCOLN'S PROPORTIONATE SHARE - the Reinsurance Amount divided by the death benefit of a Policy as of the date of. issue or as of the date of a subsequent change to the Policy that affects the Reinsurance Amount. I. MATERIAL CHANGE - a change that a prudent insurance or reinsurance executive would consider as likely to impact upon a party's financial experience under this Agreement. Page 14 J. PARTICIPATION LIMIT - the amount specified in the Life Benefits Schedule used as a condition for ceding Automatic Reinsurance. K. POLICY - an individual life insurance contract issued by USAA on any of the Policy forms specified in the Life Benefits Schedule. A "Policy" shall include any attached riders and endorsements specified in the Life Benefits Schedule or any Addendum to this Agreement. L. POLICY NET AMOUNT AT RISK - on the reinsurance premium renewal date, the death benefit of a Policy less either the terminal reserve or, in the case of interest sensitive Policies, the accumulation account or cash value on the Policy, such difference taken to the nearest dollar. The terminal reserve or cash value shall be disregarded if a Policy is on either a level term plan of twenty years or less or on a decreasing term plan. The basis for determining the Policy Net Amount at Risk may be modified with the consent of both USAA and Lincoln without the need for a formal amendment of this Agreement. M. REINSURANCE AMOUNT - the Policy death benefit at issue less any accumulative value, if applicable, less the Retention on the Policy times the percentage of Automatic Reinsurance ceded to Lincoln as specified in the Life Benefits Schedule. For Facultative Reinsurance, the "Reinsurance Amount" is that amount of the Policy death benefit at issue for which USAA accepts Lincoln's offer to reinsure. N. REINSURED NET AMOUNT AT RISK - Lincoln's Proportionate Share times the Policy Net Amount at Risk. O. RETENTION - the amount specified in the Life Benefits Schedule that is held by USAA at its own risk on a life without the benefit of proportional reinsurance. In calculating the Retention, the sum retained by USAA on the life and in force as of the date of issue of the Policy shall be taken into account. P. ULTIMATE AMOUNT - the projected maximum Policy Net Amount at Risk that a Policy could achieve based on reasonable assumptions made about the operation of certain characteristics of the Policy form. Page 15 EXECUTION USAA and Lincoln, by their respective officers, executed this Agreement in duplicate on the dates shown below. As of the Effective Date, this Agreement consists of O this Yearly Renewable Term Reinsurance Agreement numbered 24; O a Life Benefits Schedule; O an Administration Schedule; O a Premium Schedule; O an Arbitration Schedule; O an Accidental Death Benefit Addendum; and O an Increasing Policy Addendum. USAA LIFE INSURANCE COMPANY Signed at /s/ SAN ANTONIO, TX. --------------------------------------- By /s/ ---------------------------------------------- Title AVI ACTUARY ------------------------------------------- Date 12/7/98 -------------------------------------------- By /s/ ---------------------------------------------- Title VP ------------------------------------------- Date 12/7/98 -------------------------------------------- THE LINCOLN NATIONAL LIFE INSURANCE COMPANY Signed at Fort Wayne, Indiana By /s/ ---------------------------------------------- Vice President Date September 1, 1998 -------------------------------------------- By /s/ ---------------------------------------------- Assistant Secretary Date September 1, 1998 ------------------------------------------- Page 16 LIFE BENEFITS SCHEDULE (Effective as of June 1, 1998) to Agreement Number 24 POLICIES REINSURED: USAA agrees to cede reinsurance in the listed percentages of Policies issued on the following Policy forms with issue dates from and until the dates listed below to insureds having surnames beginning with the letters of the alphabet shown. Any Addenda referred to in the last column shall also be applicable to reinsurance of the Policy.
Percent of Reinsurance Policy Issue Alpha Applicable Policy Form Ceded to Lincoln Dates From/Until Split Addenda ----------- ---------------- ---------------- ----- ---------- Variable Universal Life(VUL) 10.00% 06-01-98/-- A-Z ADB, IP
RETENTION: USAA agrees to hold ten percent (10%) of each Policy face amount not to exceed the Retention limit below at its own risk on a life without the benefit of proportional reinsurance. In calculating its Retention, amounts retained by USAA on other individual life insurance policies in force as of the issue date of the Policy shall be taken into account. Non-Military Lives ------------------
Ages Standard-Table P - ---- ---------------- All $600,000
Military Lives --------------
Rank Standard-Substandard ---- -------------------- WO - 0-3 $250,000 0-4 and Above 350,000
Enlisted Military Personnel on Active Duty - --------------------------- All $50,000
Page 17 AUTOMATIC LIMITS: To bind Automatic Reinsurance, the maximum amount of life insurance in force with USAA on a single life, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, plus all amounts applied for from USAA on that life, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, may not exceed the sum of the Retention on the life plus the following amounts. Enlisted Military Personnel ---------------------------
Standard-Table P Over Table P Flat Extras Flat Extras Ages $0-$10.00 $0-$10.00 ---- ---------------- ------------ 0-75 $200,000 None Over 75 None None
All Other Plans ---------------
Standard-Table P Over Table P Flat Extras Flat Extras Ages $0-$10.00 $0-$10.00 ---- ---------------- ------------ 0-75 $6,600,000 None Over 75 None None
PARTICIPATION LIMITS: To bind Automatic Reinsurance, the sum of (1) the maximum amount of individual life insurance in force on the insured in all companies or, in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, as of the Policy Date of a Policy and (2) the amount then being applied for by all companies, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, on the insured, may not exceed the following amounts.
Ages Standard-Table P - ---- ---------------- 0-75 $25,000,000
Page 18 ADMINISTRATION SCHEDULE (Effective as of June 1, 1998) to Agreement Number 24 TO PLACE REINSURANCE INTO EFFECT (1) For Automatic Reinsurance: USAA agrees to cede Automatic Reinsurance of a Policy by including all required information about the Policy on the new business segment of the next self-administered statement submitted in accordance with the REPORTS section below following issuance of the Policy. (2) For Facultative Reinsurance: USAA agrees to submit an application form for Facultative Reinsurance in substantial accord with the attached form. It agrees to allocate reinsurance in accordance with its published facultative placement rules among those reinsurers making facultative offers to reinsure a Policy. If according to such rules Lincoln's offer is the one USAA intends to accept, USAA shall cede Facultative Reinsurance of the Policy by including all required information about the Policy on the new business segment of the next self-administered statement submitted in accordance with the REPORTS section below within one hundred twenty (120) days from date of Lincoln's facultative offer or the date specified in Lincoln's approval of a written request from USAA to grant an extension to the facultative offer. MINIMUM CESSION REQUIREMENT USAA agrees not to cede any Policy as Automatic Reinsurance if the Reinsurance Amount of the Policy is less than twenty-five thousand dollars ($25,000). REPORTS Within thirty (30) days following the end of each month, USAA agrees to send Lincoln the following three (3) reports: (1) A BILLING STATEMENT containing Policy level detail in a form mutually acceptable to USAA and Lincoln. At a minimum, it shall contain the data elements specified in the attached Policy Detail Report. If the Policy contains supplemental benefits that are also reinsured, each segment of the Billing Statement shall include supplemental benefit detail. Page 19 The Billing Statement shall be segmented as follows: o NEW ISSUES and first-year premiums due for new reinsurance. o BALANCE OF FIRST-YEAR POLICIES (Policies previously reported as new issues) and corresponding balance of first-year reinsurance premiums due for the reporting period. o POLICIES WITH RENEWAL REINSURANCE PREMIUMS due during the reporting period. o POLICIES THAT HAVE UNDERGONE A CHANGE that affects reinsurance. Separate segments may be submitted for any change affecting reinsurance of a Policy, including > reissues, > reinstatements, > terminations, > reductions, > changes in Retention, > changes in mortality ratings, > issuance of a Continuation, and > increases or decreases in the Net Amount at Risk (2) A SUMMARY ACCOUNTING REPORT that summarizes all financial transactions during the reporting period. The report shall separately total life and supplemental benefits for the first year reinsurance premiums are due, shall total life and supplemental benefits for renewal reinsurance premiums due, and shall identify all adjustments therefrom. (3) A POLICY EXHIBIT REPORT in substantial accord with the attached form that indicates in force reinsurance as of the beginning of the reporting period, increases during the reporting period (new reinsurance, reinstatements, recoveries or other increases) and all decreases during the reporting period (terminations, reductions, surrenders, death claims or other decreases); and the resulting in force reinsurance as of the end of the reporting period. USAA agrees to send Lincoln within ten (10) working days following each quarter-end a RESERVE REPORT in substantial accord with the attached form. Lincoln may request a change in the reporting requirements in order to obtain data it reasonably needs to properly administer this Agreement or to prepare its financial statements. REINSURANCE PREMIUMS DUE Reinsurance premiums are payable annually in advance and are due with the reports submitted pursuant to the REPORTS section above. Page 20 INCREASE IN LIMIT OF RETENTION If USAA elects to increase its Retention on in force Policies, the increased Retention may not become effective for a Policy until the Policy's tenth (10th) anniversary date. REDUCTIONS IN INSURANCE (1) For purposes of this section only, the term "Policy" shall refer to any life insurance issued by USAA on the insured person, whether or not reinsured with Lincoln. (2) If life insurance retained by USAA on an insured person reduces because a Policy on that life lapses or reduces in accordance with the terms of a Policy, the Reinsurance Amount shall be reduced as of the effective date of the termination or reduction in insurance to restore, as far as possible, the Retention of USAA on the life. (3) Reinsurance shall first be reduced on the specific Policy that was terminated or reduced. The balance, if any, of the reduction in the Reinsurance Amount shall be applied to reinsurance of other policies on the life beginning with the last Policy issued. (4) Notwithstanding the preceding, the reduction of the Reinsurance Amount shall not exceed the amount of the reduction times Lincoln's share of the total reinsurance on the life prior to the reduction and shall not include any Policy ceded as Facultative Reinsurance on which, at the time of issue, USAA retained less than its Retention on the life. AUTOMATIC TERMINATION Reinsurance of a Policy shall continue regardless of the reduction of the amount of Reinsured Net Amount at Risk and reinsurance shall not automatically terminate as set forth in paragraph C of the "Commencement and Termination" article. CLAIMS ADMINISTRATION Claims shall be individually reported as incurred using a form in substantial accord with the attached form. USAA may take credit for unearned reinsurance premiums from the date of death to the next Policy paid to date on its next billing statement. Page 21 ***___ Automatic or ___ Facultative TRANSACTION TYPE_______ APPLICATION TO: ___ RPR or ___ Coinsurance (See Reverse Side) ___ Medical or ___ Non-Medical (R)[LOGO OF LINCOLN NATIONAL LIFE INSURANCE CO.] A part of LINCOLN NATIONAL CORPORATION
-------- STATE OF - --------------------------------------------------------------------------------------------------------------------------------- INSURED'S NAME SEX BIRTHDATE BIRTH RESIDENCE OCCUPATION ISSUE AGE AGE BASIS - --------------------------------------------------------------------------------------------------------------------------------- JOINT INSURED SEX BIRTHDATE BIRTH RESIDENCE OCCUPATION ISSUE AGE JOINT AGE - --------------------------------------------------------------------------------------------------------------------------------- ORIGINAL POLICY NO. ISSUE DATE DATE OF APP SHORT TERM FROM PLAN(S) RATE BOOK ED RESERVE BASIS - --------------------------------------------------------------------------------------------------------------------------------- EDING COMPANY > Check Reins. Prem. Type: ____ SMOKER ___NON-SMOKER ____AGGREGATE ___OTHER PREF - ---------------------------------------------------------------------------------------------------------------------------------
LIFE BASE PLAN TERM RIDER DIS ADB Will Policy Contain: PREVIOUS IN FORCE $__________ $__________ $__________ $__________ ___ Aviation Exclusion Provision PREVIOUS RETAINED ___________ ___________ ___________ ___________ ___ Guaranteed Insurability Option ISSUED THIS POLICY ___________ ___________ ___________ ___________ ___ Increasing Insurance Rider RETAINED THIS POLICY ___________ ___________ ___________ ___________ ___ Term Insurance Dividend Option RATING, IF SUBSTANDARD ___________ ___________ ___________ ___________ (Is option limited to cash value ___ Yes ___ No) RElNSURED THIS CESSION ___________ ___________ ___________ ___________ ___ Check if Applicant has withheld M1B Authorization ================================================================================================================================
FACULTATIVE UNDERWRITING DATA Underwriting Papers: Check Appropriate Column
Data Not Attached Outstanding Obtainted -------- ----------- --------- Application ____ ____ ____ Examination ____ ____ ____ HOS ____ ____ ____ EKG (s) ____ ____ ____ X-Ray ____ ____ ____ SMA - Blood Study ____ ____ ____ APS Dr ____________ ____ ____ ____ Dr ____________ ____ ____ ____ IR ____ ____ ____ Questionnaires ____ ____ ____ Financial Data ____ ____ ____ Other (describe) ________________________________________
- ------------------------------------------------------------------- Reason for submitting Facultatively: ___ Over Automatic Limit ___ Medical Reasons ___ Financial Reasons ___ Other Non-Medical Describe: _____________________________________________________ Has money been accepted with the Application? ____ Yes ____ No Is risk being submitted to other Reinsurers? ____ Yes ____ No Other companion cases also submitted: - ------------------------------------------------------------------- Remarks: TE: Unless otherwise stated, LNL's offer to reinsure is valid for 120 days from date of facultative underwriting action. Underwriter ___________________ Date ___________________ INSTRUCTIONS 1. Submit Part 1 when making Facultative Application. 2. Submit Part 2 when making Formal Cession of Reinsurance to Lincoln National (new business or amended cession) or withdrawing Facultative Application. 3. Retain Part 3 for your records. 4. On RPR cases, please furnish the Disability Premium per unit on Parts 2 & 3 in the remarks area. TRANSACTION TYPE CODES AND DEFINITIONS NEW COVERAGE CODE LITERAL DEFINITION NB - New Business New issues, on which the underwriting is within the ceding company's requirements as per published guidelines. SU - New Business New Issues for which the ceding company has a program to with Special use modified underwriting requirements (e.g., a Special Underwriting Replacement Program). CONTINUATION OF COVERAGE - A "continuation" of a policy is a new policy replacing a policy is issued earlier by the client ("original policy") or a change in an existing policy issued or made either: (a) in compliance with the terms of the original policy (such as a conversion of a term policy or the use of first-year rates for a re-entry term product) OR (b) without the same new underwriting information the client would obtain in the absence of the original policy, without a suicide exclusion or contestable period as long as those contained in new issues by the client, or without the payment of the same first-year commissions payable in the absence of the original policy. CODE LITERAL DEFINITION EX - Exchange A policy which-is replacing a policy previously issued by the ceding company and for which the company does not obtain Full Evidence of Insurability requirements as per published underwriting guidelines it would obtain in the absence of the replaced policy. (Indicate effective date in remarks area). CN - Conversion A newly issued policy based on a contractual provision contained in the previous policy with limited or no evidence of insurability. (Indicate effective date and other pertinent data in the remarks area). RT - RE-Entry Term A contractual privilege which allows the insured to present evidence of insurability to obtain a new first year premium at his then attained age (based on same plan of insurance originally issued.) OR - Other Reissues All other reissues not considered to be exchanges, conversions, or re-entries (e.g., reduction in amount, rating reduction, return to first-year premium, adding or terminating benefits, etc.). (Indicate effective date and other pertinent data in the remarks areas). OT - Other MUST explain in remarks area. POLICY DETAIL REPORT ______________, 19___ For each Policy show: o Client Policy Number o Effective Date of Tape or Statement o Automatic/Facultative Indicator o Name -- Last Name -- First Name -- Middle Initial o Gender o Date of Birth o Smoker Indicator o Original Plan Code o Issue Age o Table Rating o Flat EXTRA 1 Premium o Length of Flat EXTRA 1 (YR) o Flat EXTRA 2 Premium o Length of Flat EXTRA 2 (YR) o Current Amount Reinsured o Issue Month/Day/Century/Year o Termination Date o Reinstate Date o Coverage Face o Direct Face Issued o Life Standard Premium o Life Substandard Premium o Gross Flat EXTRA 1 Premium o Gross Flat EXTRA 2 Premium o W.P. Premium o ADB Premium o Policy Fee o Dividend o Life Standard Allowance o Life Substandard Allowance o Gross Flat EXTRA 1 Allowance o Gross Flat EXTRA 2 Allowance o W.P. Allowance o ADB Allowance ADDITIONAL DATA ITEMS (not required) o Par/Nonpar Indicator o State of Residency o Type of Evidence o Underwriting Indicator o Social Security Number o Coverage Sequence Number o Account Number o COX/MCX/RPR o ER/NR o Age Basis o Gross Premium o Allowance o Tax Interest Rate o Status Code o Years From Issue to Conversion o Reinsurance Premium Mode o Retention Indicator o Retention Amount o Cash Value o First Year/Renewal Indicator SPECIAL PRODUCTS (only required if applicable) o Joint Insured Name -- Joint Last Name -- Joint First Name -- Joint Middle Initial o Term Additions Indicator o Accelerated Benefit Indicator o Purchase Options Policy Exhibit ______________, 19___ Risk Premium Reinsurance - ---------------------------------Current Period---------------------------------
Number Amount of of Policies Reinsurance ----------- ----------- In-force Beg. of Period Issues-Automatic Issues-Facultative Cancellations (NTO's) Reinstates from Cancels Other Increases (Include other reinstatements) Total Increases Deaths Recaptures Expiries & Maturities Lapses & Surrenders Other Decreases in Coverage Total Decreases In-force End of Period
- ----------------------------------Year-to-Date----------------------------------
Number Amount of of Policies Reinsurance ----------- ----------- In-force Beg. of Year Issues-Automatic Issues-Facultative Cancellations (NTO's) Reinstates from Cancels Other Increases (Include other reinstatements) Total Increases Deaths Recaptures Expiries & Maturities Lapses & Surrenders Other Decreases in Coverage Total Decreases In-force Year-to-Date
Quarterly Reserve Report Mean Reserves as of End of __________ Quarter, 19___ Risk Premium Reinsurance Life ___________________ Accidental Death Benefits ___________________ Waiver of Premium ___________________ Mortality Table ___________________ Rate of Interest ___________________ (R)[LOGO OF LINCOLN FRAUD STATEMENT REQUIRED This form should be completed NATIONAL REINSURANCE] BY SOME STATES and forwarded to: Individual A part of LINCOLN Life Reinsurance Claims NATIONAL CORPORATION Any person who knowingly Administration Lincoln and with intent to defraud National Life Reinsurance any insurance company or Company other person files a P.O. Box 207 statement of claim Fort Wayne, IN 46801 containing any materially (219)455-2506 false information, or Fax:(219)455-2738 conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime. REINSURANCE DEATH CLAIM FORM ================================================================================ 1. TO GIVE PRELIMINARY NOTICE OF DEATH COMPLETEITEMS 1-4b AND 11. Date__________________________ 19__________________ 2. a. Name of Insured___________________________ b. Date of Birth__________ c. Date of Death______________ d. State of Residence______________ e. Cause of Death_______________________________________ 3. If any policies are CONTESTABLE or involve ADB, have you Initiated a claim investigation? [ ] No [ ] Yes 4. LIST ALL POLICIES you have on this insured, including terminated policies and date of termination. Indicate whether any policies have been reinstated within the past two years. a. Do you have policies issued, but NOT REINSURED WITH LINCOLN NATIONAL? [ ] No [ ] Yes (If so, please complete the following for EACH policy.)
- ----------------------------------------------------------------------------------------------------------------------------------- HAS YOUR POLICY LAPSED FACE AMOUNT RETENTION FOR DATE OF TERMINATION WITHIN LAST TWO YEARS YOUR POLICY DATE OF ----------------- AGE, PLAN & REINSURED -------------------- ---------------------------------- NUMBER ISSUE LIFE ADB RATE ELSEWHERE LIFE ADB DATE OF REINSTATED - ----------- ------- ---- --- ------------- --------- ---- --- ------------- ------------------ $ $ $ $ [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- - -------------------------- FACE AMOUNT NOW REINSURED (NOT NET RISK) - -------------------------- LIFE ADB ---- --- $ $ - -------------------------- - -------------------------- - --------------------------
b. POLICIES REINSURED WITH LINCOLN NATIONAL. Were any of these policies issued as a result of a CONVERSION, EXCHANGE, or REPLACEMENT of other Life coverage in your company? [ ] No [ ] Yes (If yes, furnish former policy no., issue date, plan, amount, termination date, and name of prior reinsurer.) Did any of these policies replace Life coverage from another company? [ ] No [ ] Yes (If yes, was there full and complete underwriting by your company? [ ] No [ ] Yes)
- ----------------------------------------------------------------------------------------------------------------------------------- HAS YOUR POLICY LAPSED FACE AMOUNT RETENTION FOR DATE OF TERMINATION WITHIN LAST TWO YEARS YOUR POLICY DATE OF ----------------- AGE, PLAN & REINSURED -------------------- ---------------------------------- NUMBER ISSUE LIFE ADB RATE ELSEWHERE LIFE ADB DATE OF REINSTATED - ----------- ------- ---- --- ------------- --------- ---- --- ------------- ------------------ $ $ $ $ [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- [ ] No [ ] Yes - ----------------------------------------------------------------------------------------------------------------------------------- **al Issued $ $ ------------------- **s Total Terminated $ $ ------------------- **rance Now in Force $ $ ------------------- -------------------------- FACE AMOUNT NOW REINSURED (NOT NET RISK) -------------------------- LIFE ADB ---- --- $ $ -------------------------- -------------------------- -------------------------- -------------------------- Amount Reinsured with LNRC $ $ -------------------------- Plus Amounts reinsured elsewhere $ $ -------------------------- Plus Your Retention $ $ -------------------------- Total $ $ --------------------------
<-----------------These should agree---------------> ================================================================================ 5. To ESTABLISH CLAIM FOR REINSURANCE REIMBURSEMENT, COMPLETE QUESTIONS 1-11 Date____________________________, 19___________ - --------------------------------------------------- For INCONTESTABLE POLICIES WITHOUT ADB o If amount reinsured is $25,000 or less -COMPLETE this Reinsurance Death Claim Form only o If amount reinsured is greater than $25,000 -COMPLETE this Reinsurance Death Claim Form -ATTACH Proofs of Death -ATTACH Application Parts 1,2,3 and Underwriting Worksheet if caded automatically - --------------------------------------------------- - --------------------------------------------------- For CONTESTABLE AND/OR ADB POLICIES o COMPLETE this Reinsurance Death Claim Form o ATTACH Proofs of Death o ATTACH any Investigation Reports not previously forwarded o ATTACH Application and Underwriting file including the Underwriting Worksheet if ceded automatically - ---------------------------------------------------
----------------------------------------- LIFE ACCIDENTAL DEATH ----------------------------------------- 6. Are you awaiting our advice before making an claim decision? [ ] No [ ] Yes [ ] No [ ] Yes 7. Has your claim been approved for payment in full? If so, send a copy of your worksheet. [ ] No [ ] Yes [ ] No [ ] Yes 8. Has settlement been sent to your beneficiary? [ ] No [ ] Yes [ ] No [ ] Yes 9. Memorandum_______________________________________________________ -----------------------------------------
10. Reimbursement is requested on the following:
- ----------------------------------------------------------------- ACCIDENTAL LINCOLN NATIONAL LIFE BENEFIT DEATH BENEFIT POLICY NO. DUE DUE - --------------- ------------ -------------- $ $ - ----------------------------------------------------------------- - ----------------------------------------------------------------- - ----------------------------------------------------------------- **al Requested $ $ - -----------------------------------------------------------------
11. Your Company Name__________________________________________________________ Signature__________________________________________________________________ Title______________________________________________________________________ Telephone No.(______) _______________________________________ Ext. PREMIUM SCHEDULE (Effective as of June 1, 1998) to Agreement Number 24 STANDARD REINSURANCE PREMIUMS Basic Reinsurance Premium Rates: The annual reinsurance premium rates for reinsurance ceded under this Agreement shall be the attached rates, age last birthday, charged the insured per thousand dollars of Reinsured Net Amount at Risk times the following percentages:
Duration Plan 1 2+ ---- - -- Preferred Ultra 0% 35% Preferred Plus 0 41 Preferred and Standard Plus 0 47 Standard 0 66
ADDITIONAL AMOUNTS PAID BY USAA: (1) Substandard Premiums: For Policies written on substandard risks, the appropriate premium rate shall be adjusted by multiplying the rate by twenty-five percent (25%) for each table assessed the risk and adding such amount to the reinsurance premiums due. (2) Temporary Flat Extra Premiums: USAA agrees to pay Lincoln a temporary flat extra premium equal to the product of the flat extra premium assigned by USAA or Lincoln on the Policy times the Reinsurance Amount minus an allowance of fifteen percent (15%) for all renewal years such premium is payable. (3) Permanent Flat Extra Premiums: USAA agrees to pay Lincoln any permanent flat extra premium paid calculated on the Reinsurance Amount minus an allowance of seventy-five percent (75%) for the first year such premium is payable and twenty percent (20%) for all renewal years such premium is payable. Page 22 (4) Continuations: Premiums payable for reinsurance of a Continuation shall be based on the age at issue and duration from issue of the original Policy. If the premium scale applicable to a Continuation contains a Policy fee, USAA agrees to pay a first-year Policy fee on the Continuation if a Policy fee was not paid at issue of the original Policy. ADDITIONAL AMOUNTS PAID BY LINCOLN: (1) Premium Taxes: Lincoln shall not reimburse USAA for state premium taxes. (2) Experience Refunds: Lincoln shall not pay an experience refund to USAA. (3) Unearned Premiums: Lincoln agrees to refund, without interest, any reinsurance premiums unearned as of the date of death of an insured person or as of the date of a reduction of reinsurance pursuant to the "Reductions" article. Page 23 MALE NON-SMOKER RATE PER 1,000
Duration/ Issue Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 0 1.12 0.70 0.47 0.42 0.37 0.32 0.31 0.28 0.27 0.27 0.28 0.33 0.38 0.46 1 0.99 0.60 0.38 0.34 0.29 0.31 0.31 0.22 0.22 0.26 0.30 0.38 0.42 0.48 2 0.81 0.51 0.33 0.29 0.25 0.30 0.32 0.21 0.24 0.33 0.41 0.54 0.56 0.60 3 0.61 0.42 0.30 0.27 0.23 0.29 0.32 0.25 0.30 0.44 0.57 0.75 0.74 0.75 4 0.44 0.36 0.29 0.27 0.24 0.29 0.32 0.31 0.38 0.56 0.73 0.95 0.91 0.89 5 0.31 0.31 0.28 0.27 0.27 0.28 0.33 0.38 0.46 0.66 0.84 1.07 1.02 0.98 6 0.25 0.31 0.27 0.28 0.31 0.36 0.44 0.48 0.55 0.73 0.89 1.06 1.05 0.98 7 0.22 0.31 0.28 0.30 0.39 0.47 0.61 0.63 0.67 0.80 0.93 1.09 1.05 0.97 8 0.22 0.31 0.28 0.34 0.48 0.61 0.79 0.78 0.80 0.87 0.95 1.05 1.02 0.97 9 0.23 0.31 0.31 0.39 0.57 0.73 0.95 0.92 0.90 0.92 0.95 1.00 0.99 0.96 10 0.26 0.31 0.36 0.44 0.56 0.82 1.05 1.00 0.97 0.95 0.95 0.96 0.96 0.96 11 0.33 0.41 0.46 0.52 0.70 0.87 1.04 1.00 0.96 0.95 0.94 0.92 0.93 0.94 12 0.43 0.56 0.58 0.63 0.76 0.89 1.04 1.00 0.96 0.92 0.90 0.88 0.89 0.91 13 0.55 0.72 0.72 0.74 0.62 0.69 0.96 0.95 0.92 0.87 0.85 0.84 0.86 0.88 14 0.66 0.86 0.84 0.84 0.86 0.89 0.92 0.90 0.87 0.83 0.81 0.81 0.83 0.86 15 0.73 0.95 0.92 0.90 0.89 0.89 0.87 0.86 0.84 0.81 0.79 0.80 0.82 0.86 16 0.73 0.95 0.93 0.91 0.88 0.88 0.84 0.84 0.82 0.81 0.80 0.79 0.82 0.86 17 0.74 0.95 0.94 0.92 0.88 0.85 0.81 0.81 0.80 0.82 0.80 0.81 0.84 0.87 18 0.74 0.91 0.91 0.69 0.85 0.81 0.79 0.79 0.79 0.82 0.82 0.84 0.87 0.90 19 0.75 0.85 0.87 0.86 0.82 0.78 0.77 0.78 0.79 0.82 0.84 0.87 0.91 0.92 20 0.75 0.80 0.83 0.83 0.80 0.76 0.76 0.78 0.79 0.83 0.86 0.89 0.93 0.95 21 0.72 0.75 0.78 0.79 0.78 0.76 0.77 0.78 0.80 0.84 0.87 0.90 0.94 0.97 22 0.67 0.68 0.72 0.74 0.75 0.76 0.77 0.81 0.83 0.85 0.88 0.91 0.95 0.99 23 0.62 0.61 0.66 0.69 0.73 0.76 0.79 0.84 0.86 0.87 0.89 0.91 0.95 1.01 24 0.57 0.55 0.60 0.64 0.70 0.76 0.61 0.87 0.89 0.90 0.91 0.92 0.97 1.03 25 0.53 0.51 0.56 0.61 0.70 0.76 0.82 0.89 0.92 0.92 0.93 0.95 1.00 1.08 26 0.50 0.50 0.56 0.61 0.70 0.76 0.83 0.90 0.93 0.94 0.96 0.99 1.05 1.14 27 0.49 0.49 0.56 0.61 0.71 0.76 0.83 0.90 0.94 0.96 0.99 1.04 1.11 1.21 28 0.48 0.46 0.56 0.52 0.71 0.77 0.84 0.91 0.94 0.89 1.03 1.10 1.19 1.29 29 0.47 0.48 0.56 0.55 0.72 0.77 0.84 0.91 0.96 1.02 1.09 1.17 1.28 1.39 30 0.47 0.47 0.56 0.57 0.73 0.78 0.85 0.92 1.00 1.08 1.16 1.26 1.38 1.51 31 0.47 0.47 0.58 0.69 0.76 0.82 0.89 0.97 1.06 1.16 1.25 1.36 1.50 1.65 32 0.48 0.48 0.59 0.72 0.79 0.86 0.94 1.03 1.13 1.25 1.36 1.48 1.63 1.80 33 0.49 0.50 0.62 0.75 0.82 0.91 1.00 1.11 1.22 1.36 1.48 1.62 1.77 1.97 34 0.51 0.52 0.65 0.79 0.87 0.98 1.07 1.20 1.32 1.48 1.62 1.76 1.94 2.17 35 0.52 0.55 0.70 0.84 0.94 1.06 1.16 1.30 1.44 1.61 1.77 1.93 2.13 2.39 36 0.53 0.60 0.76 0.92 1.03 1.15 1.26 1.42 1.57 1.75 1.92 2.10 2.33 2.62 37 0.54 0.66 0.84 1.01 1.13 1.26 1.38 1.54 1.71 1.90 2.08 2.27 2.54 2.86 38 0.54 0.72 0.93 1.11 1.24 1.38 1.51 1.69 1.87 2.06 2.25 2.47 2.77 3.13 39 0.55 0.79 1.01 1.22 1.36 1.51 1.65 1.84 2.04 2.25 2.46 2.71 3.06 3.46 40 0.56 0.85 1.09 1.21 1.47 1.63 1.79 2.00 2.23 2.47 2.71 3.01 3.41 3.87 41 0.59 0.90 1.15 1.39 1.57 1.74 1.92 2.16 2.43 2.72 3.01 3.38 3.84 4.37 42 0.63 0.94 1.21 1.45 1.65 1.84 2.04 2.32 0.64 2.99 3.44 3.81 4.33 4.95 43 0.68 0.99 1.26 1.52 1.75 1.95 2.18 2.50 2.88 3.30 3.72 4.28 4.87 5.59 44 0.74 1.05 1.33 1.60 1.46 2.09 2.34 2.71 3.14 3.63 4.13 4.78 5.45 6.28 45 0.81 1.13 1.43 1.72 2.01 2.27 2.55 2.97 3.45 4.01 4.57 5.30 6.06 6.99 46 0.89 1.24 1.55 1.87 2.19 2.49 2.81 3.27 3.80 4.41 5.03 5.80 6.66 7.71 47 0.98 1.36 1.70 2.03 2.40 2.74 3.10 3.61 4.17 4.84 5.51 6.29 7.27 8.44 48 1.07 1.50 1.06 2.23 2.63 3.03 3.43 3.98 4.59 5.31 6.04 6.83 7.93 9.22 49 1.17 1.65 2.05 2.46 2.90 3.35 3.79 4.39 5.06 5.85 6.64 7.45 8.68 10.09 50 1.27 1.80 2.26 2.73 3.21 3.71 4.19 4.85 5.58 6.46 7.34 8.21 9.55 11.07 51 1.36 1.94 2.51 3.06 3.57 4.11 4.62 5.35 6.15 7.15 8.15 9.12 10.55 12.14 52 1.45 2.09 2.78 3.44 3.98 4.54 5.08 5.68 6.78 7.91 9.04 10.14 11.64 13.28 53 1.55 2.24 3.08 3.86 4.43 5.01 5.58 6.45 7.45 8.74 10.01 11.27 12.84 14.53 54 1.55 2.41 3.40 4.29 4.91 5.52 6.13 7.08 8.19 9.63 11.07 12.48 14.15 15.92 55 1.78 2.60 3.73 4.73 5.40 6.06 6.73 7.78 9.00 10.60 12.19 13.77 15.52 17.50 56 1.92 2.82 4.08 5.19 5.93 6.65 7.38 8.53 9.86 11.60 13.33 15.05 17.05 19.18 57 2.07 3.07 4.47 5.69 6.49 7.28 8.08 9.32 10.76 12.63 14.48 16.33 18.54 20.93 58 2.24 3.33 4.66 6.20 7.07 7.95 8.83 10.18 11.74 13.75 15.74 17.73 20.20 22.89 59 2.43 3.61 5.23 6.67 7.66 8.64 9.63 11.12 12.84 15.01 17.20 19.38 22.15 25.19 60 2.66 3.89 5.57 7.09 8.22 9.35 10.48 12.16 14.09 16.49 18.93 21.40 24.42 27.96 61 2.83 4.17 5.81 7.37 8.67 9.98 11.29 13.21 15.42 18.11 20.92 23.80 27.32 31.18 62 3.23 4.44 5.97 7.52 9.03 10.54 12.04 14.26 16.81 19.83 23.10 26.51 30.45 34.75 63 3.56 4.73 6.14 7.68 9.42 11.16 12.90 15.45 18.37 21.75 25.52 29.49 33.92 38.73 64 3.90 5.07 6.40 7.97 9.98 12.00 14.01 16.91 20.21 23.97 28.21 32.72 37.72 43.13 65 4.24 5.47 6.83 8.53 10.86 13.20 15.53 18.78 22.46 26.59 31.21 36.18 41.83 47.99 66 4.58 5.91 7.42 9.35 12.07 14.81 17.54 21.14 25.15 29.59 34.40 39.67 46.06 53.12 67 4.92 6.38 8.11 10.34 13.53 16.74 19.93 23.89 28.22 32.90 37.75 43.21 50.41 58.49 68 5.27 6.91 8.93 11.50 15.20 18.90 22.59 26.93 31.58 36.55 41.44 47.09 55.19 64.41 69 5.66 7.53 9.89 12.85 17.02 21.21 25.37 30.13 35.19 40.56 45.66 51.60 60.69 71.16 70 6.08 8.29 11.03 14.38 18.97 23.47 28.15 33.40 38.98 44.97 50.57 57.01 67.23 79.04 71 6.55 9.16 12.31 16.05 20.98 25.92 30.84 36.62 42.83 49.65 56.05 63.20 74.63 87.53 72 7.03 10.13 13.70 17.84 23.07 28.31 33.53 39.88 46.80 54.58 61.98 69.97 82.68 97.33 73 7.55 11.21 15.27 19.85 25.35 30.85 36.34 43.33 51.04 59.94 68.56 77.52 91.66 107.67 74 8.11 12.43 17.07 22.13 27.89 33.65 39.42 47.10 55.72 65.93 75.98 86.07 101.81 119.80 75 8.73 13.82 19.13 24.75 30.78 36.82 42.90 51.37 61.01 72.73 84.43 95.80 113.41 133.48 76 9.49 15.66 21.94 28.32 34.61 40.96 47.40 56.90 67.91 81.71 95.74 108.84 128.99 151.84 77 10.25 17.51 24.75 31.89 38.44 45.10 51.89 62.43 74.80 90.69 107.04 121.87 144.57 170.22 78 11.01 19.35 27.56 35.46 42.28 49.24 56.39 67.95 81.70 99.67 118.35 134.91 160.15 188.59 79 11.77 21.20 30.37 39.03 46.11 53.38 60.80 73.48 88.59 108.65 129.66 147.95 175.73 206.97 80 12.54 23.04 33.18 42.60 49.94 57.52 65.38 79.01 95.49 117.63 140.96 160.98 191.31 225.35 Duration/ Issue Attained Age 15 Ultimate Age 0 0.66 0.84 15 1 0.66 1.07 16 2 0.72 1.02 17 3 0.81 0.98 18 4 0.90 0.96 19 5 0.96 0.96 20 6 0.96 0.96 21 7 0.96 0.96 22 8 0.96 0.96 23 9 0.95 0.96 24 10 0.95 0.96 25 11 0.94 0.96 26 12 0.93 0.96 27 13 0.92 0.96 28 14 0.91 0.96 29 15 0.91 0.96 30 16 0.91 0.96 31 17 0.92 0.96 32 18 0.94 0.97 33 19 0.96 0.98 34 20 0.98 1.00 35 21 1.01 1.03 36 22 1.03 1.07 37 23 1.07 1.13 38 24 1.11 1.20 39 25 1.17 1.28 40 26 1.24 1.37 41 27 1.31 1.46 42 26 1.40 1.55 43 29 1.50 1.65 44 30 1.64 1.78 45 31 1.80 1.94 46 32 1.99 2.16 47 33 2.20 2.42 48 34 2.43 2.73 49 35 2.69 3.06 50 36 2.95 3.42 51 37 3.22 3.78 52 38 3.52 4.11 53 39 3.89 4.45 54 40 4.37 4.88 55 41 4.97 5.44 56 42 5.68 6.21 57 43 6.46 7.18 58 44 7.29 8.30 59 45 8.13 9.48 60 46 8.97 10.63 61 47 9.82 11.70 62 48 10.72 12.68 63 49 11.70 13.63 64 50 12.78 14.64 65 51 13.91 15.80 66 52 15.08 17.10 67 53 16.36 18.47 68 54 17.83 19.95 69 55 19.56 21.67 70 56 21.47 23.75 71 57 23.52 26.24 72 58 25.81 29.03 73 59 28.50 32.15 74 60 31.71 35.73 75 61 35.37 39.85 76 62 39.40 44.56 77 63 43.90 49.75 78 64 48.95 55.47 79 65 54.66 61.82 80 66 60.65 68.94 81 67 67.45 76.90 82 68 74.74 85.66 83 69 82.96 95.18 84 70 92.40 106.29 85 71 103.06 119.52 86 72 114.78 134.10 87 73 127.51 149.51 88 74 141.25 165.20 89 75 155.96 180.95 90 76 173.62 197.00 91 77 191.28 213.45 92 78 208.95 230.12 93 79 226.61 246.83 94 80 244.27 263.19 95 279.29 96 295.80 97 312.73 98 330.06 99
MALE SMOKER RATE PER $1,000
Duration/ Issue Age 1 2 3 4 5 6 7 8 9 10 11 12 13 0 1.59 0.99 0.67 0.60 0.52 0.45 0.44 0.40 0.38 0.38 0.40 0.47 0.54 1 1.43 0.89 0.58 0.51 0.44 0.38 0.44 0.34 0.35 0.40 0.45 0.57 0.63 2 1.18 0.76 0.51 0.45 0.39 0.33 0.45 0.34 0.38 0.50 0.62 0.81 0.83 3 0.89 0.63 0.45 0.41 0.36 0.32 0.45 0.38 0.45 0.65 0.83 1.09 1.07 4 0.63 0.51 0.42 0.39 0.36 0.34 0.46 0.44 0.55 0.81 1.04 1.35 1.30 5 0.45 0.43 0.39 0.39 0.38 0.39 0.47 0.54 0.65 0.93 1.19 1.52 1.44 6 0.35 0.44 0.38 0.39 0.44 0.50 0.62 0.68 0.78 1.03 1.26 1.52 1.49 7 0.30 0.44 0.38 0.42 0.54 0.66 0.85 0.87 0.94 1.12 1.30 1.53 1.48 8 0.31 0.44 0.38 0.46 0.65 0.84 1.10 1.09 1.11 1.28 1.33 1.47 1.43 9 0.32 0.44 0.42 0.53 0.78 1.02 1.33 1.28 1.26 1.78 1.34 1,40 1.39 10 0.37 0.44 0.51 0.63 0.91 1.16 1.49 1.42 1.37 1.34 1.35 1.35 1.36 11 0.49 0.64 0.70 0.79 1.04 1.27 1.49 1.49 1.44 1.39 1.36 1.35 1.35 12 0.68 0.92 0.95 1.02 1.21 1.37 1.50 1.53 1.48 1.42 1.36 1.35 1.35 13 0.88 1.23 1.23 1.25 1.36 1.45 1.50 1.53 1.48 1.43 1.37 1.35 1.34 14 1.06 1.51 1.47 1.46 1.49 1.50 1.51 1.52 1.49 1.43 1.37 1.35 1.34 15 1.18 1.68 1.63 1.59 1.57 1.50 1.52 1.50 1.47 1.43 1.37 1.34 1.35 16 1.19 1.73 1.68 1.60 1.58 1.51 1.47 1.45 1.43 1.40 1.36 1.34 1.35 17 1.19 1.71 1.67 1.61 1.54 1.45 1.40 1.38 1.36 1.36 1.34 1.34 1.35 18 1.15 1.63 1.61 1.55 1.46 1.37 1.32 1.29 1.27 1.30 1.31 1.34 1.36 19 1.09 1.54 1.53 1.47 1.38 1.29 1.24 1.21 1.20 1.25 1.29 1.34 1.36 20 1.05 1.46 1.46 1.41 1.32 1.23 1.18 1.15 1.15 1.22 1.28 1.34 1.37 21 1.03 1.39 1.39 1.35 1.26 1.18 1.14 1.14 1.15 1.23 1.27 1.34 1.40 22 1.00 1.30 1.30 1.27 1.20 1.14 1.10 1.13 1.16 1.23 1.27 1.35 1.42 23 0.98 1.21 1.21 1.19 1.14 1.11 1.07 1.13 1.16 1.24 1.26 1.36 1.46 24 0.95 1.12 1.13 1.12 1.10 1.08 1.07 1.12 1.17 1.24 1.29 1.40 1.53 25 0.93 1.06 1.07 1.07 1.07 1.09 1.07 1.11 1.17 1.25 1.35 1.48 1.63 26 0.90 1.02 1.03 1.08 1.07 1.09 1.10 1.16 1.24 1.34 1.46 1.61 1.77 27 0.88 0.98 1.00 1.08 1.07 1.11 1.15 1.24 1.33 1.47 1.61 1.77 1.95 28 0.85 0.96 1.00 1.09 1.09 1.15 1.22 1.33 1.45 1.62 1.79 1.96 2.15 29 0.83 0.95 1.00 1.09 1.13 1.20 1.31 1.44 1.59 1.78 1.98 2.17 2.36 30 0.82 0.94 1.01 1.10 1.20 1.29 1.42 1.58 1.74 1.96 2.17 2.38 2.59 31 0.81 0.94 1.04 1.16 1.29 1.40 1.56 1.74 1.91 2.14 2.36 2.58 2.81 32 0.81 0.94 1.08 1.24 1.40 1.55 1.72 1.92 2.11 2.32 2.54 2.78 3.03 33 0.81 0.95 1.14 1.34 1.54 1.71 1.90 2.12 2.32 2.53 2.75 2.99 3.27 34 0.83 0.98 1.22 1.46 1.69 1.89 2.10 2.34 2.55 2.76 2.98 3.24 3.56 35 0.87 1.03 1.32 1.61 1.86 2.08 2.31 2.57 2.80 3.02 3.26 3.55 3.91 36 0.92 1.11 1.45 1.79 2.05 2.28 2.52 2.80 3.06 3.30 3.57 3.90 4.32 37 0.99 1.21 1.62 1.99 2.25 2.49 2.74 3.03 3.32 3.61 3.90 4.28 4.78 38 1.06 1.33 1.80 2.21 2.48 2.72 2.98 3.28 3.60 3.94 4.28 4.72 5.29 39 1.16 1.47 2.00 2.45 2.72 2.98 3.24 3.57 3.93 4.33 4.72 5.22 5.87 40 1.27 1.61 2.20 2.70 2.99 3.26 3.55 3.91 4.33 4.79 5.25 5.82 6.55 41 1.41 1.76 2.40 2.95 3.27 3.56 3.89 4.31 4.80 5.34 5.91 6.56 7.35 42 1.57 1.92 2.61 3.19 3.55 3.89 4.26 4.75 5.33 5.97 6.68 7.43 8.27 43 1.74 2.09 2.83 3.46 3.87 4.24 4.67 5.74 5.90 6.65 7.51 8.35 9.25 44 1.92 2.28 3.08 3.76 4.22 4.63 5.12 5.77 6.51 7.35 8.34 9.26 10.24 45 2.09 2.51 3.37 4.11 4.62 5.09 5.63 6.34 7.15 8.05 9.11 10.08 11.17 46 2.24 2.76 3.69 4.50 5.08 5.61 6.21 6.96 7.80 8.71 9.76 10.73 11.96 47 2.36 3.02 4.04 4.93 5.58 6.20 6.86 7.64 8.48 9.36 10.33 11.74 12.65 48 2.50 3.31 4.42 5.40 6.12 6.83 7.54 8.35 9.20 10.03 10.91 11.77 13.37 49 2.68 3.65 4.85 5.92 6.71 7.48 8.26 9.09 9.96 10.78 11.59 12.44 14.25 50 2.91 4.06 5.36 6.51 7.33 8.15 8.97 9.85 10.76 11.63 12.46 13.39 15.43 51 3.21 4.55 5.96 7.18 8.00 8.81 9.66 10.58 11.56 12.54 13.44 14.55 16.84 52 3.55 5.10 6.63 7.93 8.70 9.47 10.34 11.29 12.35 13.47 14.46 15.84 18.39 53 3.93 5.70 7.36 8.73 9.45 10.17 11.05 12.04 13.21 14.52 15.65 17.34 20.18 54 4.36 6.33 8.10 9.54 10.24 10.93 11.83 12.90 14.22 15.76 17.13 19.18 22.32 55 4.84 6.96 8.82 10.34 11.06 11.77 12.72 13.93 15.46 17.29 19.00 21.44 24.89 56 5.38 7.58 9.52 11.12 11.93 12.72 13.73 15.17 16.98 19.16 21.37 24.25 28.02 57 6.00 8.22 10.21 11.90 12.84 13.77 14.84 16.57 18.73 21.31 24.17 27.53 31.63 58 6.64 8.88 10.92 12.69 13.79 14.87 16.02 18.09 20.64 23.66 27.24 31.12 35.56 59 7.30 9.56 11.65 13.51 14.77 16.00 17.26 19.66 22.61 26.14 30.43 34.84 39.64 60 7.93 10.29 12.42 14.36 15.76 17.13 18.53 21.25 24.59 28.66 33.59 38.50 43.69 61 8.49 11.05 13.22 15.22 16.71 18.11 19.65 22.65 26.39 31.15 36.70 42.14 47.75 62 9.00 11.83 14.04 16.09 17.62 18.95 20.63 23.91 28.06 33.65 39.85 45.89 51.92 63 9.53 12.65 14.89 16.99 18.59 18.90 21.75 25.31 29.87 36.29 43.08 49.68 56.17 64 10.16 13.52 15.79 17.97 19.70 21.16 23.28 27.13 32.08 39.19 46.44 53.48 60.44 65 10.95 14.48 16.76 19.06 21.05 22.97 25.49 29.68 34.96 42.46 49.95 5774 64.67 66 11.94 15.48 17.69 20.13 22.54 25.41 28.53 33.08 38.59 46.03 53.42 60.61 68.48 67 13.09 16.51 18.57 21.16 24.11 28.31 32.21 37.15 42.79 49.83 56.83 63.61 71.91 68 14.33 17.62 19.55 22.34 25.90 31.58 36.33 41.67 47.44 53.95 60.47 66.78 75.54 69 15.64 18.87 20.80 23.86 28.05 35.10 40.67 46.45 52.40 58.51 64.64 70.65 79.94 70 16.95 20.29 22.46 25.92 30.71 38.74 45.02 51.28 57.55 63.60 69.66 75.75 85.69 71 18.24 21.88 24.53 28.49 33.82 42.42 49.26 56.02 62.75 69.14 75.48 82.08 92.81 72 19.55 23.61 26.92 31.45 37.31 46.20 53.51 60.79 68.09 75.07 81.90 89.29 100.90 73 20.91 25.50 29.62 34.83 41.22 50.24 57.99 65.83 73.76 81.50 88.99 97.37 109.95 74 22.37 27.55 32.64 38.64 45.62 54.68 62.89 71.33 79.97 88.57 96.78 106.31 119.97 75 23.98 29.80 35.99 42.92 50.58 59.68 68.41 77.51 86.91 96.40 105.34 116.11 130.93 76 25.97 32.59 40.33 48.55 57.13 66.13 75.52 85.44 95.78 106.34 116.13 128.48 144.75 77 27.96 35.39 44.66 54.18 63.67 72.58 82.63 93.37 104.65 116.29 126.92 140.86 158.58 78 29.95 38.18 49.00 49.81 70.22 79.04 89.74 101.30 113.51 126.23 137.71 153.23 172.40 79 31.94 40.97 53.33 65.44 76.76 85.49 96.84 109.23 122.38 136.17 148.50 165.60 186.23 80 33.93 43.77 57.67 71.07 83.31 91.94 103.95 117.16 131.25 146.12 159.30 177.97 200.05 Duration/ Issue Attained Age 14 15 Ultimate Age 0 0.65 0.94 1.19 15 1 0.72 0.97 1.52 16 2 0.88 1.07 1.44 17 3 1.08 1.18 1.39 18 4 1.27 1.29 1.36 19 5 1.39 1.36 1.36 20 6 1.38 1.36 1.36 21 7 1.38 1.36 1.36 22 8 1.37 1.36 1.36 23 9 1.36 1.36 1.36 24 10 1.36 1.38 1.36 25 11 1.35 1.36 1.36 26 12 1.35 1.36 1.36 27 13 1.34 1.36 1.36 28 14 1.34 1.36 1.36 29 15 1.34 1.36 1.36 30 16 1.34 1.36 1.36 31 17 1.44 1.36 1.37 32 18 1.45 1.37 1.40 33 19 1.37 1.39 1.44 34 20 1.40 1.44 1.50 35 21 1.45 1.51 1.59 36 22 1.51 1.60 1.70 37 23 1.58 1.71 1.85 38 24 1.68 1.84 2.03 39 25 1.80 1.99 2.22 40 26 1.95 2.15 2.42 41 27 2.13 2.33 2.63 42 28 2.43 2.53 2.82 43 29 2.56 2.76 3.02 44 30 2.60 3.02 3.26 45 31 3.05 3.30 3.55 46 32 3.30 3.60 3.91 47 33 3.58 3.94 4.33 48 34 3.92 4.33 4.81 49 35 4.43 4.81 5.34 50 36 4.81 5.37 5.56 51 37 5.35 6.01 6.66 52 38 5.95 6.71 7.46 53 39 6.63 7.47 8.33 54 40 7.38 8.30 9.27 55 41 8.23 9.17 10.77 56 42 9.17 10.10 11.30 57 43 10.18 11.09 12.31 58 44 11.22 12.18 13.37 59 45 12.28 13.47 14.56 60 46 13.27 14.61 15.99 61 47 14.21 15.89 17.69 62 48 15.22 17.30 19.62 63 49 16.42 18.91 21.75 64 50 17.92 20.83 24.13 65 51 19.69 23.03 26.77 66 52 21.63 25.44 29.70 67 53 23.83 28.11 32.92 68 54 26.35 31.06 36.40 69 55 29.76 34.33 40.11 70 56 32.66 37.97 44.02 71 57 36.49 41.96 48.11 72 58 40.62 46.22 52.39 73 59 44.92 50.66 56.87 74 60 49.24 55.19 61.55 75 61 53.60 59.79 66.44 76 62 58.09 64.51 71.51 77 63 62.69 69.40 76.73 78 64 67.37 74.48 82.13 79 65 72.12 79.80 87.82 80 66 76.53 84.94 93.92 81 67 80.61 89.89 100.41 82 68 84.97 95.24 107.18 83 69 90.22 101.62 114.29 84 70 96.98 109.62 123.58 85 71 105.23 119.48 136.00 86 72 114.55 130.80 150.00 87 73 124.98 143.22 164.74 88 74 136.53 156.40 179.37 89 75 149.22 169.99 193.34 90 76 165.30 185.27 206.75 91 77 181.47 200.55 220.08 92 78 197.45 215.83 233.70 93 79 213.52 231.11 247.95 94 80 229.60 246.40 263.19 95 279.29 96 295.80 97 312.73 98 330.06 99
Duration/ Issue Age 1 2 3 4 5 6 7 8 9 10 11 12 13 0 0.84 0.33 0.30 0.27 0.24 0.22 0.20 0.18 0.19 0.19 0.21 0.23 0.26 1 0.71 0.25 0.21 0.19 0.16 0.22 0.21 0.12 0.13 0.14 0.16 0.18 0.21 2 0.57 0.21 0.18 0.16 0.14 0.22 0.21 0.12 0.14 0.16 0.19 0.21 0.23 3 0.43 0.20 0.17 0.16 0.15 0.21 0.22 0.17 0.19 0.23 0.26 0.27 0.28 4 0.31 0.20 0.18 0.18 0.17 0.21 0.22 0.22 0.25 0.30 0.34 0.34 0.34 5 0.22 0.21 0.18 0.19 0.19 0.21 0.23 0.26 0.29 0.34 0.38 0.38 0.38 6 0.22 0.21 0.19 0.20 0.21 0.23 0.25 0.28 0.31 0.35 0.38 0.38 0.38 7 0.21 0.21 0.19 0.21 0.24 0.27 0.28 0.31 0.33 0.35 0.38 0.38 0.38 8 0.21 0.21 0.21 0.24 0.27 0.31 0.31 0.33 0.34 0.36 0.38 0.38 0.38 9 0.21 0.22 0.23 0.26 0.31 0.35 0.34 0.35 0.36 0.36 0.38 0.38 0.38 10 0.21 0.22 0.25 0.28 0.33 0.37 0.35 0.36 0.36 0.37 0.37 0.38 0.38 11 0.22 0.24 0.27 0.30 0.34 0.37 0.36 0.36 0.37 0.37 0.37 0.38 0.38 12 0.23 0.27 0.30 0.32 0.34 0.37 0.36 0.36 0.37 0.37 0.37 0.38 0.38 13 0.24 0.30 0.32 0.33 0.35 0.36 0.36 0.36 0.37 0.37 0.36 0.37 0.37 14 0.26 0.33 0.34 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.37 15 0.27 0.34 0.34 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.37 16 0.28 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.38 0.36 0.37 0.37 17 0.28 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.37 18 0.29 0.35 0.34 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.37 0.37 19 0.30 0.34 0.34 0.35 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.37 0.38 20 0.29 0.34 0.33 0.34 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.38 0.38 21 0.29 0.33 0.33 0.34 0.34 0.34 0.35 0.35 0.36 0.36 0.37 0.39 0.40 22 0.28 0.31 0.32 0.33 0.34 0.34 0.35 0.36 0.37 0.37 0.36 0.41 0.42 23 0.27 0.29 0.30 0.32 0.33 0.34 0.35 0.36 0.38 0.38 0.40 0.43 0.45 24 0.26 0.27 0.29 0.32 0.33 0.33 0.35 0.36 0.38 0.40 0.43 0.45 0.49 25 0.26 0.26 0.29 0.32 0.33 0.34 0.36 0.36 0.39 0.42 0.46 0.49 0.53 26 0.25 0.26 0.29 0.32 0.33 0.34 0.37 0.38 0.42 0.45 0.50 0.53 0.58 27 0.25 0.25 0.29 0.32 0.33 0.35 0.39 0.41 0.45 0.49 0.54 0.53 0.64 28 0.25 0.25 0.29 0.33 0.34 0.37 0.42 0.44 0.48 0.53 0.59 0.64 0.71 29 0.25 0.25 0.29 0.33 0.36 0.40 0.45 0.48 0.53 0.58 0.64 0.70 0.78 30 0.25 0.25 0.29 0.34 0.38 0.43 0.49 0.53 0.58 0.64 0.71 0.78 0.87 31 0.26 0.26 0.31 0.37 0.42 0.47 0.53 0.58 0.64 0.71 0.79 0.87 0.96 32 0.26 0.27 0.34 0.41 0.46 0.51 0.58 0.64 0.71 0.78 0.87 0.96 1.07 33 0.27 0.28 0.38 0.46 0.51 0.56 0.63 0.70 0.78 0.87 0.96 1.07 1.18 34 0.27 0.30 0.41 0.51 0.57 0.61 0.69 0.78 0.67 0.96 1.06 1.18 1.30 35 0.28 0.32 0.45 0.56 0.63 0.68 0.76 0.86 0.96 1.06 1.17 1.30 1.43 36 0.31 0.35 0.49 0.61 0.69 0.76 0.85 0.96 1.06 1.16 1.28 1.41 1.56 37 0.35 0.38 0.52 0.66 0.76 0.85 0.95 1.06 1.17 1.27 1.38 1.52 1.70 38 0.39 0.41 0.56 0.71 0.83 0.94 1.05 1.18 1.29 1.39 1.50 1.64 1.84 39 0.43 0.45 0.60 0.76 0.90 1.04 1.17 1.30 1.41 1.52 1.64 1.79 2.02 40 0.47 0.49 0.64 0.80 0.96 1.13 1.28 1.43 1.56 1.68 1.81 1.98 2.23 41 0.50 0.52 0.68 0.84 1.00 1.21 1.39 1.56 1.72 1.87 2.03 2.22 2.49 42 0.52 0.55 0.70 0.85 1.03 1.28 1.49 1.69 1.89 2.08 2.28 2.51 2.79 43 0.54 0.59 0.70 0.86 1.07 1.35 1.59 1.83 2.07 2.31 2.55 2.82 3.11 44 0.56 0.63 0.74 0.90 1.12 1.44 1.72 1.99 2.27 2.55 2.84 3.14 3.45 45 0.59 0.70 0.81 0.98 1.22 1.58 1.89 2.19 2.50 2.81 3.13 3.46 3.79 46 0.62 0.79 0.91 1.10 1.37 1.77 2.11 2.43 2.76 3.09 3.42 3.76 4.12 47 0.65 0.89 1.04 1.25 1.55 1.99 2.36 2.71 3.06 3.39 3.72 4.05 4.45 48 0.68 1.01 1.18 1.43 1.75 2.25 2.64 3.01 3.38 3.70 4.03 4.35 4.80 49 0.72 1.14 1.35 1.63 1.98 2.50 2.91 3.31 3.69 4.01 4.35 4.68 5.18 50 0.78 1.27 1.54 1.86 2.22 2.75 3.17 3.58 3.98 4.33 4.68 5.05 5.62 51 0.86 1.42 1.76 2.12 2.48 2.98 3.40 3.81 4.23 4.62 5.01 5.45 6.09 52 0.95 1.59 2.01 2.42 2.76 3.22 3.61 4.01 4.46 4.90 5.32 5.86 6.58 53 1.06 1.76 2.28 2.74 3.06 3.45 3.82 4.22 4.69 5.19 5.66 6.32 7.13 54 1.16 1.92 2.54 3.05 3.37 3.69 4.04 4.44 4.95 5.53 6.07 6.85 7.77 55 1.26 2.05 2.78 3.36 3.66 3.95 4.28 4.70 5.27 5.93 6.56 7.48 8.53 56 1.35 2.15 3.00 3.66 3.94 4.21 4.52 4.98 5.62 6.37 7.11 8.16 9.36 57 1.43 2.23 3.21 3.96 4.22 4.47 4.75 5.28 5.98 6.82 7.69 8.88 10.24 58 1.52 2.29 3.41 4.26 4.51 4.74 5.01 5.60 6.39 7.34 8.36 9.70 11.24 59 1.60 2.36 3.60 4.54 4.79 5.04 5.32 6.00 6.90 7.99 9.18 10.70 12.47 60 1.69 2.44 3.77 4.79 5.09 5.38 5.70 6.51 7.55 8.81 10.21 11.97 14.00 61 1.77 2.53 3.90 4.97 5.35 5.71 6.12 7.07 8.28 9.75 11.37 13.40 15.74 62 1.85 2.62 3.98 5.08 5.57 6.03 6.55 7.65 9.06 10.77 12.62 14.95 17.63 63 1.94 2.72 4.07 5.20 5.82 6.41 7.06 8.35 9.99 11.96 14.08 16.76 19.82 64 2.03 2.85 4.20 5.40 6.17 6.91 7.73 9.24 11.14 13.43 15.88 18.96 22.45 65 2.15 3.02 4.44 5.74 6.69 7.61 8.61 10.39 12.61 15.26 18.16 21.69 25.68 66 2.27 3.20 4.78 6.26 7.42 8.56 9.75 11.87 14.48 17.60 21.14 25.17 29.67 67 2.38 3.40 5.20 6.92 8.32 9.71 11.10 13.61 16.70 20.37 24.74 29.31 34.33 68 2.52 3.63 5.68 7.65 9.32 10.99 12.61 15.54 19.14 23.38 28.61 33.78 39.40 69 2.71 3.94 6.21 8.43 10.37 12.32 14.21 17.59 21.66 26.43 32.40 38.27 44.63 70 2.99 4.37 6.79 9.21 11.40 13.62 15.87 19.66 24.15 29.33 35.79 42.45 49.76 71 3.35 4.90 7.40 9.96 12.39 14.86 17.52 21.69 26.51 31.96 38.61 46.16 54.61 72 3.76 5.51 8.05 10.72 13.37 16.08 19.20 23.73 28.83 34.46 41.10 49.61 59.35 73 4.24 6.22 8.76 11.52 14.39 17.36 20.99 25.89 31.24 37.00 43.48 53.04 64.25 74 4.80 7.04 9.54 12.38 15.50 18.74 22.97 28.28 33.87 39.72 45.97 56.72 69.60 75 5.45 7.99 10.40 13.33 16.74 20.29 25.23 31.00 36.86 42.80 48.80 60.88 75.68 76 6.35 9.31 11.51 14.52 16.31 22.28 28.21 34.58 40.74 46.73 52.35 66.17 83.56 77 7.24 10.64 12.61 15.72 19.88 24.26 31.18 38.15 44.62 50.66 55.90 71.45 91.45 78 8.14 11.96 13.72 16.91 21.44 26.25 34.16 41.73 48.50 54.59 59.44 76.74 99.33 79 9.04 13.28 14.82 18.10 23.01 28.24 37.13 45.30 52.38 58.52 62.99 82.03 107.22 80 9.93 14.61 15.93 19.29 24.58 30.23 40.11 48.88 56.26 62.46 66.54 87.31 115.10 Duration/ Issue Attained Age 14 15 Ultimate Age 0 0.29 0.34 0.38 15 1 0.24 0.35 0.38 16 2 0.25 0.35 0.38 17 3 0.30 0.36 0.38 18 4 0.35 0.37 0.38 19 5 0.38 0.37 0.38 20 6 0.38 0.38 0.38 21 7 0.38 0.38 0.38 22 8 0.38 0.38 0.38 23 9 0.38 0.38 0.38 24 10 0.38 0.38 0.38 25 11 0.38 0.38 0.38 26 12 0.38 0.38 0.38 27 13 0.38 0.38 0.38 28 14 0.38 0.38 0.38 29 15 0.36 0.38 0.38 30 16 0.38 0.39 0.38 31 17 0.39 0.40 0.38 32 18 0.39 0.40 0.40 33 19 0.40 0.41 0.42 34 20 0.40 0.42 0.45 35 21 0.42 0.45 0.49 36 22 0.46 0.49 0.53 37 23 0.49 0.53 0.58 38 24 0.54 0.58 0.64 39 25 0.59 0.64 0.70 40 26 0.65 0.71 0.78 41 27 0.71 0.78 0.86 42 26 0.78 0.86 0.96 43 29 0.87 0.95 1.06 44 30 0.96 1.06 1.17 45 31 1.06 1.18 1.30 46 32 1.18 1.31 1.44 47 33 1.30 1.45 1.60 48 34 1.44 1.60 1.78 49 35 1.59 1.77 1.96 50 36 1.75 1.95 2.17 51 37 1.91 2.14 2.39 52 38 2.08 2.35 2.63 53 39 2.28 2.58 2.88 54 40 2.52 2.84 3.16 55 41 2.80 3.13 3.47 56 42 3.10 3.44 3.80 57 43 3.44 3.78 4.16 58 44 3.79 4.14 4.54 59 45 4.16 4.54 4.96 60 46 4.53 4.96 5.44 61 47 4.91 5.39 5.96 62 48 5.31 5.86 6.51 63 49 5.75 6.39 7.10 64 50 6.27 6.99 7.77 65 51 6.82 7.64 8.54 66 52 7.40 8.32 9.41 67 53 8.05 9.08 10.33 68 54 8.81 9.98 11.34 69 55 9.72 11.05 12.51 70 56 10.71 12.23 13.91 71 57 11.77 13.48 15.52 72 58 12.98 14.92 17.28 73 59 14.44 16.66 19.23 74 60 16.27 18.81 21.52 75 61 18.35 21.27 24.31 76 62 20.62 23.96 27.63 77 63 23.24 27.05 31.39 78 64 28.35 30.68 35.59 79 65 30.12 35.03 40.37 80 66 34.64 40.07 45.87 81 67 39.79 45.71 52.11 82 68 45.46 51.95 59.01 83 69 51.48 56.83 66.59 84 70 57.73 66.35 75.59 85 71 63.98 74.51 86.39 86 72 70.32 83.29 98.35 87 73 77.08 92.71 111.01 88 74 84.61 102.79 123.87 89 75 93.24 113.54 136.66 90 76 104.71 126.30 149.51 91 77 116.18 139.05 162.61 92 78 127.65 151.81 176.05 93 79 139.12 164.56 189.90 94 80 150.59 177.32 204.04 95 218.50 96 233.50 97 249.04 98 265.12 99
Duration Issue Age 1 2 3 4 5 6 7 8 9 10 11 12 13 0 1.57 0.62 0.56 0.50 0.45 0.41 0.37 0.34 0.36 0.36 0.39 0.43 0.49 1 1.41 0.54 0.48 0.43 0.37 0.41 0.32 0.29 0.32 0.33 0.38 0.42 0.47 2 1.15 0.48 0.42 0.38 0.34 0.40 0.31 0.31 0.35 0.39 0.45 0.47 0.51 3 0.86 0.44 0.38 0.36 0.33 0.40 0.34 0.37 0.41 0.48 0.55 0.56 0.59 4 0.59 0.41 0.36 0.36 0.34 0.39 0.39 0.43 0.49 0.57 0.65 0.65 0.66 5 0.41 0.40 0.35 0.37 0.35 0.39 0.43 0.48 0.54 0.63 0.71 0.71 0.71 6 0.40 0.39 0.35 0.38 0.39 0.44 0.47 0.53 0.58 0.67 0.71 0.71 0.71 7 0.40 0.40 0.37 0.41 0.45 0.51 0.54 0.58 0.62 0.69 0.71 0.71 0.71 8 0.39 0.40 0.40 0.45 0.52 0.60 0.60 0.63 0.66 0.70 0.70 0.71 0.71 9 0.39 0.41 0.44 0.50 0.58 0.66 0.65 0.67 0.68 0.70 0.70 0.71 0.71 10 0.39 0.42 0.47 0.53 0.62 0.70 0.66 0.67 0.68 0.71 0.69 0.70 0.71 11 0.39 0.45 0.50 0.55 0.62 0.69 0.67 0.67 0.67 0.69 0.69 0.70 0.71 12 0.40 0.51 0.54 0.57 0.62 0.65 0.63 0.63 0.63 0.65 0.67 0.69 0.71 13 0.41 0.57 0.57 0.58 0.60 0.60 0.58 0.58 0.58 0.61 0.65 0.69 0.71 14 0.42 0.62 0.60 0.58 0.57 0.55 0.53 0.53 0.53 0.57 0.63 0.68 0.70 15 0.42 0.64 0.60 0.58 0.55 0.51 0.50 0.50 0.50 0.55 0.62 0.67 0.71 16 0.43 0.64 0.60 0.57 0.53 0.49 0.49 0.49 0.50 0.55 0.62 0.67 0.71 17 0.42 0.61 0.58 0.54 0.50 0.46 0.49 0.49 0.50 0.55 0.62 0.67 0.72 18 0.40 0.58 0.54 0.50 0.48 0.45 0.48 0.48 0.51 0.55 0.62 0.67 0.72 19 0.38 0.54 0.51 0.47 0.46 0.44 0.47 0.48 0.51 0.55 0.62 0.67 0.73 20 0.37 0.50 0.48 0.45 0.45 0.44 0.48 0.47 0.51 0.55 0.62 0.67 0.74 21 0.36 0.46 0.46 0.45 0.45 0.45 0.48 0.50 0.55 0.59 0.66 0.72 0.80 22 0.34 0.41 0.43 0.45 0.46 0.47 0.51 0.54 0.59 0.65 0.72 0.79 0.88 23 0.33 0.36 0.41 0.45 0.47 0.50 0.54 0.58 0.65 0.71 0.78 0.88 0.98 24 0.31 0.31 0.39 0.45 0.49 0.53 0.58 0.64 0.72 0.79 0.86 0.97 1.09 25 0.31 0.29 0.39 0.45 0.51 0.56 0.62 0.69 0.78 0.86 0.94 1.06 1.20 26 0.31 0.29 0.39 0.46 0.53 0.59 0.66 0.74 0.84 0.93 1.02 1.14 1.31 27 0.31 0.29 0.39 0.47 0.55 0.62 0.71 0.80 0.90 1.00 1.10 1.22 1.41 28 0.31 0.31 0.41 0.48 0.58 0.66 0.76 0.86 0.97 1.08 1.18 1.31 1.53 29 0.31 0.33 0.43 0.51 0.62 0.71 0.82 0.93 1.05 1.17 1.29 1.43 1.68 30 0.31 0.37 0.47 0.56 0.67 0.77 0.89 1.01 1.15 1.29 1.43 1.58 1.86 31 0.34 0.41 0.53 0.63 0.75 0.86 0.98 1.11 1.27 1.43 1.59 1.76 2.07 32 0.38 0.47 0.60 0.72 0.84 0.96 1.08 1.23 1.40 1.58 1.76 1.97 2.31 33 0.43 0.53 0.68 0.83 0.95 1.08 1.20 1.35 1.55 1.76 1.96 2.21 2.58 34 0.50 0.60 0.77 0.94 1.06 1.19 1.31 1.49 1.71 1.96 2.20 2.49 2.89 35 0.57 0.68 0.86 1.04 1.16 1.30 1.43 1.63 1.89 2.20 2.50 2.83 3.25 36 0.66 0.77 0.95 1.13 1.25 1.38 1.53 1.76 2.06 2.46 2.86 3.22 3.67 37 0.77 0.87 1.05 1.22 1.33 1.44 1.60 1.87 2.23 2.75 3.26 3.67 4.14 38 0.88 0.98 1.15 1.31 1.41 1.50 1.69 2.00 2.43 3.07 3.71 4.16 4.65 39 1.00 1.08 1.25 1.42 1.52 1.61 1.83 2.18 2.68 3.43 4.19 4.68 5.20 40 1.10 1.18 1.36 1.54 1.67 1.78 2.05 2.45 3.01 3.85 4.70 5.23 5.78 41 1.19 1.27 1.46 1.68 1.86 2.03 2.37 2.84 3.46 4.35 5.25 5.82 6.4! 42 1.27 1.34 1.56 1.82 2.08 2.34 2.77 3.31 4.00 4.93 5.84 6.47 7.09 43 1.34 1.42 1.67 1.98 2.33 2.69 3.22 3.84 4.59 5.54 6.46 7.13 7.80 44 1.42 1.50 1.79 2.17 2.60 3.07 3.69 4.39 5.18 6.15 7.06 7.79 8.50 45 1.50 1.59 1.94 2.38 2.89 3.45 4.14 4.90 5.74 6.72 7.64 8.41 9.18 46 1.58 1.69 2.11 2.62 3.21 3.86 4.61 5.41 6.29 7.26 8.19 9.00 9.83 47 1.66 1.78 2.30 2.90 3.57 4.31 5.11 5.95 6.85 7.81 8.73 9.57 10.48 48 1.75 1.89 2.50 3.19 3.95 4.76 5.61 6.48 7.39 8.33 9.25 10.13 11.12 49 1.85 2.01 2.73 3.50 4.32 5.19 6.06 6.95 7.87 6.81 9.75 10.66 11.72 50 1.96 2.15 2.97 3.82 4.66 5.55 6.42 7.33 8.27 9.23 10.20 11.17 12.30 51 2.10 2.33 3.24 4.14 4.96 5.81 6.64 7.55 8.52 9.54 10.58 11.62 12.60 52 2.27 2.53 3.54 4.48 5.22 5.99 6.74 7.65 8.63 9.76 10.89 12.02 13.23 53 2.45 2.75 3.85 4.83 5.49 6.15 6.81 7.71 8.71 9.95 11.18 14.41 13.65 54 2.61 2.95 4.17 5.20 5.78 6.35 6.93 7.82 8.85 10.18 11.51 12.83 14.13 55 2.74 3.12 4.48 5.59 6.13 6.65 7.18 8.08 9.14 10.54 11.93 13.33 14.73 56 2.81 3.22 4.77 6.00 6.54 7.05 7.58 8.49 9.55 10.96 12.35 13.78 15.32 57 2.85 3.28 5.04 6.44 6.99 7.52 8.07 8.98 10.04 11.40 12.72 14.14 15.85 58 2.87 3.32 5.32 6.89 7.48 8.05 8.63 9.56 10.61 11.94 13.20 14.62 16.53 59 2.93 3.41 5.63 7.37 8.00 8.62 9.23 10.22 11.32 12.66 13.92 15.41 17.56 60 3.06 3.59 5.99 7.87 8.55 9.23 9.92 10.98 12.19 13.63 15.03 16.70 19.13 61 3.28 3.86 6.40 8.40 9.14 9.89 10.64 11.85 13.26 14.91 16.61 18.60 21.34 62 3.56 4.21 6.84 8.94 9.77 10.60 11.42 12.84 14.50 16.45 18.55 20.98 24.04 63 3.88 4.60 7.32 9.52 10.43 11.36 12.25 13.90 15.87 18.17 20.75 23.69 27.11 64 4.22 5.02 7.83 10.11 11.11 12.13 13.11 15.00 17.30 19.98 23.09 26.57 30.42 65 4.55 5.47 8.36 10.73 11.61 12.90 13.97 16.11 18.73 21.81 25.44 29.46 33.84 66 4.85 5.90 8.89 11.35 12.47 13.57 14.70 17.07 20.01 23.49 27.69 32.27 37.26 67 5.15 6.34 9.44 11.97 13.09 14.16 15.32 17.90 21.17 25.08 29.90 35.11 40.77 68 5.46 6.81 10.01 12.62 13.76 14.82 16.02 18.85 22.46 26.82 32.28 38.12 44.52 69 5.82 7.38 10.66 13.35 14.56 15.67 17.02 20.13 24.11 28.95 35.01 41.43 48.67 70 6.26 8.09 11.39 14.17 15.59 16.89 13.54 22.00 26.38 31.72 38.28 45.20 53.37 71 6.77 8.92 12.21 15.09 16.84 18.46 20.55 24.42 29.22 35.08 42.04 49.35 58.52 72 7.35 9.85 13.10 16.10 18.25 20.29 22.91 27.23 32.48 38.86 46.16 53.79 64.01 73 7.98 10.89 14.07 17.18 19.83 22.38 25.66 30.48 36.20 43.14 50.72 58.62 70.00 74 8.67 12.06 15.12 18.34 21.57 24.72 28.80 34.20 40.45 48.00 55.82 63.96 76.65 75 9.43 13.39 16.25 19.59 23.46 27.32 32.38 38.45 45.27 53.50 61.54 69.91 84.11 76 10.39 15.14 17.64 21.09 25.83 30.69 37.21 44.20 51.75 60.85 69.02 77.55 93.80 77 11.34 16.90 19.02 22.59 28.20 34.07 42.05 49.95 58.24 68.19 76.50 85.20 103.49 78 12.30 18.65 20.41 24.09 30.57 37.44 46.88 55.70 64.72 75.54 83.98 92.34 113.18 79 13.25 20.41 21.80 25.58 32.93 40.82 51.72 61.45 71.20 82.89 91.45 100.48 122.87 80 14.21 22.16 23.18 27.08 35.30 44.19 56.55 67.20 77.69 90.23 98.93 108.13 132.56 Duration/ Issue Attained Age 14 15 Ultimate Age 0 0.54 0.64 0.71 15 1 0.52 0.60 0.71 16 2 0.55 0.61 0.71 17 3 0.61 0.65 0.71 18 4 0.67 0.69 0.71 19 5 0.71 0.71 0.71 20 6 0.71 0.71 0.71 21 7 0.71 0.71 0.71 22 8 0.71 0.71 0.71 23 9 0.71 0.71 0.71 24 10 0.71 0.71 0.71 25 11 0.71 0.71 0.71 26 12 0.71 0.71 0.71 27 13 0.71 0.71 0.71 28 14 0.70 0.71 0.71 29 15 0.71 0.71 0.71 30 16 0.71 0.73 0.71 31 17 0.72 0.75 0.74 32 18 0.74 0.78 0.82 33 19 0.77 0.83 0.90 34 20 0.82 0.90 1.00 35 21 0.90 1.00 1.12 36 22 0.99 1.11 1.26 37 23 1.10 1.24 1.40 38 24 1.23 1.39 1.56 39 25 1.36 1.55 1.74 40 26 1.49 1.72 1.94 41 27 1.63 1.89 2.16 42 28 1.78 2.08 2.40 43 29 1.96 2.29 2.66 44 30 2.17 2.54 2.95 45 31 2.41 2.81 3.26 46 32 2.68 3.11 3.60 47 33 2.98 3.43 3.96 48 34 3.32 3.80 4.34 49 35 3.71 4.22 4.76 50 36 4.16 4.70 5.23 51 37 4.65 5.22 5.78 52 38 5.19 5.79 6.38 53 39 5.77 6.40 7.04 54 40 6.38 7.04 7.75 55 41 7.04 7.74 8.48 56 42 7.76 8.48 9.23 57 43 8.51 9.26 10.03 58 44 9.26 10.06 10.86 59 45 9.99 10.84 11.70 60 46 10.71 11.63 12.56 61 47 11.44 12.45 13.45 62 48 12.16 13.26 14.37 63 49 12.85 14.04 15.32 64 50 13.30 14.76 16.25 65 51 14.03 15.32 17.10 66 52 14.47 15.75 17.76 67 53 14.90 16.18 18.13 68 54 15.43 16.76 18.39 69 55 16.16 17.64 18.84 70 56 16.97 18.72 19.78 71 57 17.78 19.90 21.41 72 58 18.79 21.33 23.63 73 59 20.16 23.14 26.30 74 60 22.08 25.46 29.38 75 61 24.60 28.30 32.81 76 62 27.60 31.57 36.32 77 63 30.99 35.26 40.48 78 64 34.70 39.36 44.79 79 65 38.64 43.87 49.55 80 66 42.65 43.60 54.91 81 67 46.77 53.56 60.91 82 68 51.27 59.02 67.43 83 69 56.37 65.25 74.51 84 70 62.32 72.50 83.43 85 71 68.97 80.88 94.84 86 72 76.15 90.22 107.64 87 73 84.09 100.36 120.98 88 74 93.03 111.15 133.98 89 75 103.20 122.45 146.00 90 76 116.74 135.45 157.10 91 77 130.23 148.46 167.85 92 78 143.82 161.46 178.87 93 79 157.36 174.46 190.75 94 80 170.90 187.47 204.04 95 218.50 96 233.50 97 249.04 98 265.12 99
PROFIT NUMBER REQUEST/UPDATE CCN: 2904 COMPANY NAME: USAA STATE: TX ---- ----------------------------------- ----- REQUESTED BY: TWIS DATE: 8-14-98 --------------------------------- -------------
- ----------------------------------------------------------------------------------------- PLAN ID PLANS/SMOKING AGMT. /ACCT STATUS EFF. NO. NO. /COMPOSITE DATE PVP PVRXP-E ROI% INV. PVE VA - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- VUL 6/1/98 1.22 13.88 13.8 1.49 .21 .25 - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
10/96 ARBITRATION SCHEDULE (Effective as of June 1, 1998) to Agreement Number 24 To initiate arbitration, either USAA or Lincoln agrees to notify the other party in writing of its desire to arbitrate, stating the nature of its dispute and the remedy sought. The party to which the notice is sent agrees to respond in writing to the notification within ten (10) days of its receipt. The arbitration hearing shall be held before a panel of three (3) arbitrators, each of whom must be a present or former officer of a life insurance company. An arbitrator may not be a present or former officer, attorney or consultant of USAA or Lincoln, or either's affiliates. USAA and Lincoln agree to each name five (5) candidates to serve as an arbitrator. Each agree to choose one (1) candidate from the other's list, and these two (2) candidates shall serve as the first two (2) arbitrators. If one (1) or more candidates so chosen decline to serve as an arbitrator, the party that named the candidate shall add an additional candidate to its list, and the other party agrees to again choose one (1) candidate from the list. This process shall continue until two (2) arbitrators have been chosen and have accepted. USAA and Lincoln agree to present their initial lists of five (5) candidates by written notification to the other party within twenty-five (25) days of the date of the mailing of the notification initiating the arbitration. Any subsequent additions to the list which are required shall be presented within ten (10) days of the date the naming party receives notice that a candidate who has been chosen declines to serve. The two (2) arbitrators shall select the third arbitrator from the eight (8) candidates remaining on the lists of USAA and Lincoln within fourteen (14) days of the acceptance of their positions as arbitrators. If the two (2) arbitrators cannot agree on the choice of a third, then this choice shall be referred back to USAA and Lincoln. USAA and Lincoln agree to take turns striking the names of the remaining candidates from the initial eight (8) candidates until only one (1) candidate remains. If the candidate so chosen shall decline to serve as the third arbitrator, the candidate whose name was stricken last shall be nominated as third arbitrator. This process shall continue until a candidate has been chosen and accepted. This candidate shall serve as the third arbitrator. The first turn at striking the name of a candidate shall belong to the party that is responding to the other party's initiation of arbitration. Once chosen, the arbitrators are empowered to decide all substantive and procedural issues by a majority of votes. Page 24 It is agreed that each of the three (3) arbitrators should be impartial regarding the dispute and should resolve the dispute on the basis described in the "Arbitration" article. At no time shall either USAA or Lincoln contact or otherwise communicate with any person who is to be or has been designated as a candidate to serve as an arbitrator concerning the dispute, except upon the basis of jointly drafted communications provided by both USAA and Lincoln to inform those candidates actually chosen as arbitrators of the nature and facts of the dispute. Likewise, any written or oral arguments provided to the arbitrators concerning the dispute shall be coordinated with the other party and shall be provided simultaneously to the other party or shall take place in the presence of the other party. Further, at no time shall any arbitrator be informed that he or she has been named or chosen by one party or the other. The arbitration hearing shall be held on the date and in the location set by the arbitrators. In no event shall this date be later than six (6) months after the appointment of the third arbitrator. As soon as possible, the arbitrators shall establish prearbitration procedures as warranted by the facts and issues of the particular case. At least ten (10) days prior to the arbitration hearing, each party agrees to provide the other party and the arbitrators with a detailed statement of the facts and arguments it will present at the arbitration hearing. The arbitrators may consider any relevant evidence and agree to give the evidence such weight as they deem appropriate after consideration of any objections raised concerning it. The party initiating the arbitration shall have the burden of proving its case by a preponderance of the evidence. Each party may examine any witnesses who testify at the arbitration hearing. Within twenty (20) days after the end of the arbitration hearing, the arbitrators shall issue a written decision that sets forth their findings and any award to be paid as a result of the arbitration, except that the arbitrators may not award punitive or exemplary damages. In their decision, the arbitrators shall apportion the costs of arbitration, which shall include, but not be limited to, their own fees and expenses. Page 25 ACCIDENTAL DEATH BENEFIT ADDENDUM (Effective as of June 1, 1998) to Agreement Number 24 The provisions of the Agreement shall apply in all respects to reinsurance of Accidental Death Benefits provided by the Policies except as otherwise set forth in this Addendum. This Addendum is referred to as "ADB" in the "Applicable Addendum" column of the POLICIES REINSURED section of the Life Benefits Schedule. 1. DEFINITIONS 1.1. ADB - life insurance provided by the Policies which is payable in the event of the accidental death of the insured. 1.2. ADB Reinsurance Amount - the face amount of ADB provided by a Policy less USAA's ADB Retention. 2. REINSURANCE TERMS 2.1. USAA agrees to cede, and Lincoln agrees to accept, the ADB Reinsurance Amount as Automatic Reinsurance if 2.1.1. USAA retains the following amounts of ADB on a life: $0 2.1.2. the sum of ADB issued by USAA then in force on the insured life and the amount of ADB then being applied for from USAA does not exceed the sum of USAA's ADB Retention and the following amounts:
Ages Standard-Table F Over Table F ---- ---------------- ------------ 0-70 $100,000 None Over 70 None None
Page 26 2.1.3. the sum of the amount of ADB then in force on the insured life in all companies and the amount of ADB then being applied for on the insured life from all companies does not exceed the following amounts:
Ages Standard-Table F - ---- ---------------- 0-70 $150,000
2.2. Notwithstanding paragraph 2.1, ADB shall not be ceded if the ADB Reinsurance Amount at issue is less than five hundred dollars ($500). 2.3. USAA agrees to place ADB reinsurance into effect by following the procedures for placing life reinsurance into effect as set forth in the Administrative Schedule of the Agreement. 2.4. Reinsurance of ADB shall be yearly renewal term reinsurance. ADB reinsurance premiums shall equal the ADB Reinsurance Amount times the appropriate rate shown below. Based on the classification of the occupational manual of USAA:
Classification First Year Renewal - -------------- ---------- ------- Standard $ .25 $ .90 1 1/2 x Standard .40 1.25 2 x Standard .50 1.60 3 x Standard .75 2.35 5 x Standard 1.25 3.80
Reinsurance premiums are payable with the same frequency as, and due with, the associated life reinsurance premium. ADB reinsurance premiums shall be due even if a Policy is subject to a waiver of premium claim. 2.5. Lincoln shall pay the ADB Reinsurance Amount of all ADB claims incurred during the term of this Addendum. Claims shall be reported and paid as incurred. 2.6. USAA may increase its ADB Retention, and elect to recapture reinsurance of in force ADB, in accordance with the procedures set forth in the Agreement. 2.7. Either USAA or Lincoln may terminate this Addendum for new ADB reinsurance by giving ninety (90) days' advance written notice to the other party. Page 27 INCREASING POLICY ADDENDUM (Effective as of June 1, 1998) to Agreement Number 24 The provisions of the Agreement shall apply in all respects to reinsurance of an Increasing Policy except as otherwise set forth in this Addendum. This Addendum is referred to as "IP" in the "Applicable Addendum" column of the POLICIES REINSURED section of the Life Benefits Schedule. 1. DEFINITIONS 1.1. Increasing Policy - a Policy, including any attached riders or endorsements, that provides an increasing death benefit where the increases are not subject to USAA's underwriting approval. 1.2. Maximum Amount - three hundred fifty percent (350%) of the Reinsurance Amount. 2. TERMS OF REINSURANCE 2.1. USAA's Retention for Increasing Policies shall be set forth in the Life Benefits Schedule. 2.2. Lincoln agrees to automatically accept Lincoln's Proportionate Share of all increases on the Increasing Policy up to, but not to exceed, the Maximum Amount. 2.3. For purposes of changes in Retention, increases in an increasing Policy's Net Amount at Risk shall be considered issued on the issue date of the original Policy. Page 28 AMENDMENT to the Yearly Renewable Term Agreement (the "Agreement") effective June 1, 1998, between USAA LIFE INSURANCE COMPANY of San Antonio, Texas, hereinafter referred to as the "USAA," and THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Wayne, Indiana, hereinafter referred to as "Lincoln." 1. Effective the first day of June, 1998, the Life Benefits Schedule under the Agreement shall be replaced with the Life Benefits Schedule, attached hereto. 2. Effective the first day of June, 1998, the Waiver of Premium Benefit Addendum attached hereto, shall be added to the Agreement. 3. The provisions of this amendment shall be subject to all the terms and conditions of the Agreement which do not conflict with the terms hereof. IN WITNESS WHEREOF the parties hereto have caused this amendment to be executed in duplicate on the dates shown below. USAA LIFE INSURANCE COMPANY Signed at /s/ SAN ANTONIO, TX. ---------------------------- By /s/ By /s/ ----------------------------------- ----------------------------------- Title AVP ACTUARY Title VP -------------------------------- -------------------------------- Date 1/6/99 Date 1/7/99 --------------------------------- --------------------------------- THE LINCOLN NATIONAL LIFE INSURANCE COMPANY Signed at Fort Wayne, Indiana By /s/ By /s/ ----------------------------------- ----------------------------------- Vice President Assistant Secretary Date December 16, 1998 Date 12-15-98 --------------------------------- --------------------------------- Page 1 LIFE BENEFITS SCHEDULE (Effective as of June 1, 1998) to Agreement Number 24 POLICIES REINSURED: USAA agrees to cede reinsurance in the listed percentages of Policies issued on the following Policy forms with issue dates from and until the dates listed below to insureds having surnames beginning with the letters of the alphabet shown. Any Addenda referred to in the last column shall also be applicable to reinsurance of the Policy.
Percent of Reinsurance Policy Issue Alpha Applicable Policy Form Ceded to Lincoln Dates From/Until Split Addenda ----------- ---------------- ---------------- ----- ---------- Variable Universal Life(VUL) 10% 06-01-98/-- A-Z ADB, IP, WP
RETENTION: USAA agrees to hold ten percent (10%) of each Policy face amount not to exceed the Retention limit below at its own risk on a life without the benefit of proportional reinsurance. In calculating its Retention, amounts retained by USAA on other individual life insurance policies in force as of the issue date of the Policy shall be taken into account. Non-Military Lives ------------------
Ages Standard-Table P - ---- ---------------- All $600,000
Military Lives --------------
Rank Standard-Substandard ---- -------------------- WO - 0-3 $250,000 0-4 and Above 350,000
Enlisted Military Personnel on Active Duty --------------------------- All $50,000
Page 2 AUTOMATIC LIMITS: To bind Automatic Reinsurance, the maximum amount of life insurance in force with USAA on a single life, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, plus all amounts applied for from USAA on that life, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, may not exceed the sum of the Retention on the life plus the following amounts. Enlisted Military Personnel ---------------------------
Standard-Table P Over Table P Flat Extras Flat Extras Ages $0-$10.00 $0-$10.00 ---- ---------------- ------------ 0-75 $200,000 None Over 75 None None
All Other Plans ---------------
Standard-Table P Over Table P Flat Extras Flat Extras Ages $0-$10.00 $0-$10.00 ---- ---------------- ------------ 0-75 $6,600,000 None Over 75 None None
PARTICIPATION LIMITS: To bind Automatic Reinsurance, the sum of (1) the maximum amount of individual life insurance in force on the insured in all companies or, in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, as of the Policy Date of a Policy and (2) the amount then being applied for by all companies, or in the case of individual life insurance with increasing death benefits, the Ultimate Amounts, on the insured, may not exceed the following amounts.
Ages Standard-Table P - ---- ---------------- 0-75 $25,000,000
Page 3 WAIVER OF PREMIUM BENEFIT ADDENDUM (Effective as of June 1, 1998) to Agreement Number 24 The provisions of the Agreement shall apply in all respects to reinsurance of the Waiver of Premium Benefit provided by the Policies except as otherwise set forth in this Addendum. This Addendum is referred to as "WP" in the "Applicable Addendum" column of the POLICIES REINSURED section of the Life Benefits Schedule. 1. DEFINITIONS 1.1. Lincoln's Proportionate Share - 10% of Waiver of Premium Reinsured. 1.2. Policy Premiums - the insurance premiums, cost of insurance rates or other specified amounts due for the life insurance benefit of a Policy. 1.3. Waiver of Premium Benefit - a benefit provided pursuant to a Policy wherein USAA agrees to relinquish its right to Policy Premiums in the event of the Policyowner's disability until such disability is ended. 2. REINSURANCE TERMS 2.1. USAA agrees to cede, and Lincoln agrees to accept, Lincoln's Proportionate Share of the Waiver of Premium Benefit if the following conditions are met: 2.1.1. USAA retains the following amounts of Waiver of Premium Benefit on a life:
Ages Standard-Substandard - ---- -------------------- 15-55 $600,000 Face Amount
Page 4 2.1.2. The sum of Waiver of Premium Benefit issued by USAA then in force on the insured life and the amount of Waiver of Premium Benefit then being applied for from USAA does not exceed the sum of USAA's Waiver of Premium Retention and the following amounts:
Ages Standard-Table F - ---- ---------------- 0-44 $3,000,000 45-65 1,500,000 Over 65 None
2.1.3. The sum of the amount of Waiver of Premium Benefit then in force on the insured life in all companies and the amount of Waiver of Premium Benefit then being applied for on the insured life from all companies does not exceed the following amounts:
Ages Standard-Table F - ---- ---------------- 0-65 $5,000,000 Over 65 None
2.2. USAA agrees to place Waiver of Premium reinsurance into effect by following the procedures for placing life reinsurance into effect as set forth in the Administrative Schedule of the Agreement. 2.3. Waiver of Premium Benefits shall be coinsured with Lincoln. Reinsurance shall follow the forms of USAA. USAA agrees to pay Lincoln reinsurance premiums for Waiver of Premium reinsurance equal to Lincoln's Proportionate Share of the appropriate premium rates as attached to the Premium Schedule less an allowance of Twenty-five percent (25%) of such premium in all years. Waiver of Premium reinsurance premiums are payable with the same frequency as, and due with, the associated life reinsurance premium. Waiver of Premium reinsurance premiums shall not be due while a Waiver of Premium Benefit is being paid. However, while a Waiver of Premium Benefit is being paid, USAA agrees to continue to pay Lincoln premiums for reinsurance of other benefits provided by the Policy in accordance with the Agreement or applicable addenda. Page 5 2.4. USAA agrees to give Lincoln prompt notice of any Waiver of Premium claim, and upon request, agrees to provide proof of the insured person's continuing disability. Lincoln's reinsurance liability for Waiver of Premium claims shall equal Lincoln's Proportionate Share of Policy Premiums waived by USAA under the Policy. USAA agrees to notify Lincoln upon the termination of a Waiver of Premium claim and agrees to resume paying Waiver of Premium reinsurance premiums starting with the beginning of the first month following the date the person is no longer eligible for such Waiver of Premium Benefit. 2.5. USAA may elect to recapture reinsurance of in force Waiver of Premium reinsurance in accordance with the procedures set forth in the Agreement. If USAA elects to recapture such reinsurance but an insured person is subject to a Waiver of Premium claim when an increase of its Waiver of Premium Retention would otherwise become effective, Waiver of Premium reinsurance shall remain at the current Retention until the Policy returns to a premium-paying status. After such time, the intended recapture shall occur. Page 6 VARIABLE UNIVERSAL LIFE INSURANCE WAIVER OF MONTHLY DEDUCTION (WMD) MALE / FEMALE NON-SMOKER / SMOKER
- ---------------------------------------------------------------------------------------- AGE COST PER $1.00 MONTHLY DEDUCTION AGE COST PER $1.00 MONTHLY DEDUCTION - ---------------------------------------------------------------------------------------- 15 0.050 40 0.082 16 0.050 41 0.087 17 0.050 42 0.092 18 0.050 43 0.097 19 0.050 44 0.103 20 0.050 45 0.109 21 0.050 46 0.118 22 0.050 47 0.128 23 0.050 48 0.138 24 0.050 49 0.149 25 0.050 50 0.161 26 0.050 51 0.173 27 0.050 52 0.186 28 0.050 53 0.199 29 0.050 54 0.213 30 0.050 55 0.227 31 0.053 56 0.240 32 0.056 57 0.253 33 0.059 58 0.265 34 0.062 59 0.277 35 0.066 36 0.069 37 0.072 38 0.075 39 0.078 - ----------------------------------------------------------------------------------------
Waiver of Monthly Deduction [LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY CCN 2904 -------------------------------------------------------- November 27, 2000 Jerry L. Walth Second Vice President Lincoln National Reinsurance 4965 Preston Park Boulevard Suite250 Plano, TX 75093 Dear Jerry: In an effort to continually improve and streamline our self-administration reinsurance process, USAA has developed a standard waiver of premium claim form and income replacement claim form (see attachments). The two forms, waiver of premium and income replacement, are similar in content, wording, and overall design to the death claim form, which you have reviewed. For your convenience, I have included the death claim form and the approval letter, dated 7-25-2000, as attachments too. If you agree with the design and scope of the waiver of premium and income replacement claim forms, please sign and date in the spaces indicated below and return the duplicated copy to my attention. Thank you for your assistance on this matter. USAA Life Insurance Company THE LINCOLN NATIONAL LIFE INSURANCE COMPANY FORT WAYNE, INDIANA /s/ Allen R. Pierce, /s/ Jay Biehl, - ------------------------------ ------------------------------ Signature Signature Allen R. Pierce, VP Actuary Jay Biehl, Vice President - ------------------------------ ------------------------------ Name & Title Name & Title November 27, 2000 3/23/01 - ------------------------------ ------------------------------ Date Date ATTEST: /s/ ------------------------ Assistant Secretary 9800 Fredericksburg Road San Antonio, Texas 78288 1-800-531-8000 In San Antonio 498-8000 31710-0198 ---------- [LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY USAA LIFE INSURANCE COMPANY OF NEW YORK REINSURANCE WAIVER OF PREMIUM CLAIM FORM ---------------------------------------- - -------------------------------------------------------------------------------- I. CLAIM DATA - -------------------------------------------------------------------------------- REINSURANCE COMPANY: Lincoln National LIC STATUS -------------------- INSURED: ________________________________________ [ ] INCONTESTABLE DATE OF BIRTH: __________________________________ [ ] CONTESTABLE DATE OF DISABILITY: _____________________________ [ ] UNDER INVESTIGATION CAUSE OF DISABILITY: ____________________________ [ ] SETTLED DATE BENEFITS EXPIRE:____________________________ CLAIM TYPE: [ ] ACCIDENT [ ] SICKNESS DIAGNOSIS: - -------------------------------------------------------------------------------- II. NOTIFICATION - -------------------------------------------------------------------------------- [ ] PRELIMINARY [ ] PERIODIC [ ] NOTIFICATION OF CONTEST/ [ ] REQUEST FOR NOTICE REVIEW COMPROMISE/*LITIGATION PAYMENT - -------------------------------------------------------------------------------- POLICIES ISSUED AS A RESULT OF EXCHANGE OR REPLACEMENT OF OTHER USAA LIFE INSURANCE COVERAGE: [ ] YES IF YES, PLEASE PROVIDE THE FOLLOWING INFORMATION: ORIGINAL POLICY DATE: ORIGINAL $: [ ] NO POLICY #s: POLICY #s: POLICY #s: - -------------------------------------------------------------------------------- *This claim form is notification of USAA's intention to contest, compromise, or litigate a claim in accordance with the treaty terms. Unless Reinsurer notifies USAA Life, in writing, that it declines to be a party to such action. Reinsurer will pay its share of any settlement up to the maximum that would have been payable under the specific policy plus its share of specific expenses and damages, if any, in connection with the contest, compromise, or litigation. For incontestable claims, we will process all requirements and proceed with claim payment unless notified otherwise as specified in the provision of the Reinsurance Treaty. - -------------------------------------------------------------------------------- POLICY NUMBER DATE OF FACE AMOUNT DATE OF REINSTATEMENT AMOUNT OF ISSUE TERMINATION DATE REINSURANCE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Total Issued: Amount reinsured w/Reinsurer: - -------------------------------------------------------------------------------- Less Terminated: Amount w/other Reinsurers: - -------------------------------------------------------------------------------- USAA Retention: - -------------------------------------------------------------------------------- Amount in Force: TOTAL: - -------------------------------------------------------------------------------- III. FINAL DISPOSITION/REQUEST FOR PAYMENT - -------------------------------------------------------------------------------- [ ] Claim has been [ ] Temporary WP benefit [ ] Permanent WP approved approved to _____ (date) benefit approved [ ] Claim Denied [ ] WP benefits ceased - contract provision _____ (date) [ ] Policy Rescinded [ ] WP continuance approved to _______ (date) - -------------------------------------------------------------------------------- Policy Number Annual Premium Amount Reinsured Amount - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Sub Total: ----------------------------------------------------- Investigation Expense: ----------------------------------------------------- Legal Expense: ----------------------------------------------------- TOTAL REQUESTED: - -------------------------------------------------------------------------------- COMMENTS: - -------------------------------------------------------------------------------- INCONTESTABLE CLAIMS REQUIREMENTS: CONTESTABLE CLAIMS REQUIREMENTS: - ---------------------------------- -------------------------------- - -Complete this form & attach proof IF CEDED FACULTATIVELY: of disability -Attach proof of disability, complete this form & investigation reports IF CEDED AUTOMATICALLY: -Attach proof of disability, complete this form, investigation reports & underwriting papers - -------------------------------------------------------------------------------- Date: Ceding Company Name: USAA Wire Information: Completed By: Cheryl Moczygemba -------------------- ----------------- Address: Attn: Reinsurance Dept., F-2-E Nations Bank, Dallas ------------------------------ -------------------- 9800 Fredericksburg Rd. ABA #111000025 Title: Reinsurance Specialist ----------------------- -------------- ---------------------- San Antonio, TX 78288-0338 Account#7110373357 -------------------------- ------------------ Phone#: 210-498-9248 Account Name - USAA LIFE ------------ ------------------------ Fax#: 210-498-0338 ------------ - -------------------------------------------------------------------------------------------------------------------
[LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY USAA LIFE INSURANCE COMPANY OF NEW YORK REINSURANCE DEATH CLAIM FORM ---------------------------- - -------------------------------------------------------------------------------- I. CLAIM DATA - -------------------------------------------------------------------------------- REINSURANCE COMPANY: Lincoln National LIC STATUS -------------------- INSURED: ________________________________________ [ ] INCONTESTABLE DATE OF BIRTH: __________________________________ [ ] CONTESTABLE DATE OF DEATH: __________________________________ [ ] UNDER INVESTIGATION CAUSE OF DEATH: _________________________________ [ ] SETTLED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- II. NOTIFICATION - -------------------------------------------------------------------------------- [ ] PRELIMINARY NOTICE [ ] NOTIFICATION OF CONTEST/ [ ] REQUEST FOR PAYMENT COMPROMISE/*LITIGATION - -------------------------------------------------------------------------------- POLICIES ISSUED AS A RESULT OF CONVERSION, EXCHANGE OR REPLACEMENT OF OTHER USAA LIFE INSURANCE COVERAGE: [ ] YES IF YES, PLEASE PROVIDE THE FOLLOWING INFORMATION: ORIGINAL POLICY DATE: ORIGINAL $: [ ] NO POLICY #s: POLICY #s: POLICY #s: - -------------------------------------------------------------------------------- *This claim form is notification of USAA's intention to contest, compromise, or litigate a claim in accordance with the treaty terms. Unless Reinsurer notifies USAA Life, in writing, that it declines to be a party to such action, Reinsurer will pay its share of any settlement up to the maximum that would have been payable under the specific policy plus its share of specific expenses and damages, if any, in connection with the contest, compromise, or litigation. For incontestable claims, we will process all requirements and proceed with claim payment unless notified otherwise. - -------------------------------------------------------------------------------- Policy Number Date of Face Amount Date of Reinstatement Amount of Issue Termination Date Reinsurance - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Total Issued: Amount reinsured w/Reinsurer: - -------------------------------------------------------------------------------- Less Terminated: Amount w/other Reinsurers: - -------------------------------------------------------------------------------- USAA Retention: - -------------------------------------------------------------------------------- Amount in Force: TOTAL: - -------------------------------------------------------------------------------- III. FINAL DISPOSITION/REQUEST FOR PAYMENT - -------------------------------------------------------------------------------- [ ]Claim has been [ ]Settlement has been sent [ ]Claim Denied [ ]Policy approved to the beneficlary Rescinded - -------------------------------------------------------------------------------- Policy Number Reinsured Amount Interest Total - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Sub Total: --------------------------------------------------- Investigation Expense: INTEREST PAID AT _____% --------------------------------------------------- FOR_____DAYS. Legal Expense: --------------------------------------------------- TOTAL REQUESTED: - -------------------------------------------------------------------------------- COMMENTS: - -------------------------------------------------------------------------------- INCONTESTABLE CLAIMS REQUIREMENTS: CONTESTABLE CLAIMS REQUIREMENTS: ---------------------------------- -------------------------------- - Complete this form & attach proof IF CEDED FACULTATIVELY: of death -Attach proof of death, complete this form & investigation reports IF CEDED AUTOMATICALLY: -Attach proof of death, complete this form, investigation reports & underwriting papers - ----------------------------------------------------------------------------------------------------------- Date: Completed By: Cheryl Moczygemba Title: Reinsurance Specialist ----------------- ---------------------- Ceding Company Name: USAA Phone#: 210-498-9248 Fax#: 210-498-0338 ---- ------------ ------------ Address: Attn: Reinsurance Dept., F-2-E Wire Information: Nations Bank, Dallas ------------------------------ -------------------- 9800 Fredericksburg Rd. ABA #111000025 ---------------------- -------------- San Antonio, TX 78288-0338 Account #7110373357 -------------------------- ------------------- Account Name- USAA LIFE ----------------------- - -----------------------------------------------------------------------------------------------------------
EX-4 6 e29675_ex4.txt ADMINISTRATIVE SERVICES AGREEMENT AGREEMENT made as of _______________, 20___, between USAA LIFE INSURANCE COMPANY, a corporation organized under the laws of the state of Texas and having a place of business in San Antonio, Texas ("USAA Life"), and USAA LIFE INVESTMENT TRUST, a Delaware business trust having a place of business in San Antonio, Texas (the "Trust"). RECITALS The Trust is an open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, whose shares ("Shares") are registered under the Securities Act of 1933 (the "1933 Act"), as amended, and with Shares offered in various investment funds as set forth in Exhibit A (the "Existing Funds") (such funds together with any funds subsequently established by the Trust for which the Trust desires to retain USAA Life to provide services under this Agreement, and for which USAA Life is willing to do so, being collectively referred to as the "Funds"). The Trust makes its shares available for purchase to the Separate Account of USAA Life Insurance Company and the Life Insurance Separate Account of USAA Life Insurance Company (the "Separate Accounts"), and may in the future (subject to any necessary approval by the Board of Trustees) make its shares available to any other separate accounts of USAA Life or any of USAA Life's subsidiaries or affiliates, and to separate accounts of non-affiliated life insurance companies (all such eligible purchasers being referred to collectively as "Purchasers"). USAA Life issues variable annuity contracts and variable life insurance policies (collectively "Contracts") funded through the Separate Accounts. USAA Life invests certain assets of the Separate Accounts in the Trust for the benefit of the owners of the Contracts ("Contract Owners"). USAA Life represents that the services provided under this Agreement and the fees received hereunder do not duplicate services provided and fees received under the Contracts or otherwise in connection with the Separate Accounts. AGREEMENT In consideration of the agreements contained herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, the Trust and USAA Life agree as follows: 1. APPOINTMENT OF USAA LIFE. (a) Existing Funds. The Trust hereby appoints USAA Life to act as administrator for the Existing Funds for the period and on the terms herein set forth. USAA Life accepts such appointment and agrees to render the services herein set forth, for the compensation herein provided. (b) Additional Funds. In the event that the Trust desires to retain USAA Life to render administrative services hereunder with respect to any Fund other than an Existing Fund, it shall notify USAA Life in writing. If USAA Life is willing to render such services it shall notify the Trust in writing, whereupon the Trust shall appoint USAA Life to act as administrator for such Fund for the period and on the terms herein set forth, and 1 USAA Life shall accept such appointment and agree to render the services herein set forth for the compensation herein provided. (c) USAA Life shall be subject to the direction and control of the Trust in providing services under this Agreement, and shall provide such services in compliance with all applicable provisions of the Trust's Master Trust Agreement, Bylaws, Prospectus, and any applicable federal or state laws and regulations. 2. DUTIES OF USAA LIFE. USAA Life shall administer the affairs of the Trust and provide related services required for the operation of the Funds; provided, that USAA Life shall not have any obligation to provide under this Agreement any services related to the distribution of Fund shares or any other services which are the subject of a separate agreement or arrangement between the Trust and USAA Life or its affiliates with respect to the Funds. Subject to the foregoing, USAA Life shall provide the following services and facilities to the Trust: (a) Office Space, Equipment and Facilities. Furnish such office space, office equipment, and office facilities as are adequate for the Trust's needs with respect to the Funds. (b) Personnel. Provide the services of individuals competent to perform all of the Trust's executive, administrative, and clerical functions that are not performed by employees or other agents engaged by the Trust or by USAA Life acting in some other capacity pursuant to a separate agreement or arrangement with the Trust with respect to the Funds. (c) Agents. Assist the Trust in selecting and coordinating the activities of the other agents engaged by the Trust with respect to the Funds, including the Trust's transfer agent, custodian, independent auditors, and legal counsel. (d) Trustees and Officers. Authorize and permit USAA Life's directors, officers and employees who may be elected or appointed as trustees or officers of the Trust to serve in such capacities, without remuneration from or other cost to the Trust. (e) Books and Records. Assure that all financial, accounting and other records required to be prepared, maintained, and preserved by the Trust with respect to the Funds are prepared, maintained, and preserved by it or on its behalf in accordance with applicable laws and regulations. (f) Regulatory Reports and Filings. Prepare and file (as required) or arrange for others to prepare and file, but not pay for, all tax returns with respect to the Trust, all proxy statements with respect to the Funds, all periodic reports by the Trust with respect to the Funds, and all reports and filings required to maintain the registration and qualification of the Trust and the Shares, or to meet other regulatory or tax requirements applicable to the Funds under federal and state securities and tax laws. (g) Board Reports. Prepare and coordinate materials relating to the Funds to be presented to the Trust's Board of Trustees in preparation for its meetings. (h) Fidelity Bond. Provide and maintain a bond issued by a reputable insurance company authorized to do business in the place where the bond is issued, against larceny and embezzlement covering each officer and employee of the Trust who may singly or jointly with others have access to funds or securities of the Trust, with direct or indirect authority to draw upon such funds or to direct generally the disposition of such funds. The bond shall be in such reasonable amount as a majority of the Board of Trustees of the Trust who are not officers or 2 employees of the Trust shall determine, with due consideration to the aggregate assets of the Trust to which any such officer or employee may have access. (i) Calculation of Net Asset Value. Compute each Fund's net asset value per Share. (j) Delegation. Delegate, at its expense, some or all of its duties hereunder to other persons or entities approved by USAA Life upon prior notice to the Trust. (k) Other Services. Provide such other services as the parties may from time to time agree in writing. 3. DUTIES OF THE TRUST. Provide or cause others to provide to USAA Life all financial or other information necessary to USAA Life's providing services under this Agreement. 4. ALLOCATION OF EXPENSES. Except for the services and facilities to be provided by USAA Life set forth in paragraph 2 above and except for the services provided by USAA Life set forth in any other Agreement between the Trust and USAA Life, the Trust assumes and shall pay all expenses for all other Fund operations and activities and shall reimburse USAA Life for any such expenses incurred by USAA Life. The expenses to be borne by the Trust shall include, without limitation: (a) the charges and expenses of any registrar, share transfer or dividend disbursing agent, custodian, or depository appointed by the Trust for the safekeeping of a Fund's cash, portfolio securities and other property; (b) the charges and expenses of independent auditors; (c) brokerage commissions, if any, for transactions in the portfolio securities of the Funds; (d) all taxes, including issuance and transfer taxes, and fees payable by a Fund to federal, state or other governmental agencies; (e) the cost of any share certificates representing Shares of a Fund; (f) fees involved in registering and maintaining registrations of the Trust and of its Shares with the applicable federal, state, and other jurisdictions; (g) all expenses of shareholders' and Trustees' meetings and of preparing, printing and mailing proxy statements, any quarterly reports, semiannual reports, annual reports and other communications (including prospectuses) to existing shareholders and Contract Owners; (h) compensation and travel expenses of Trustees who are not "interested persons" of the Trust within the meaning of the 1940 Act; (i) charges and expenses of legal counsel in connection with matters relating to the Funds, including, without limitation, legal services rendered in connection with the Funds' legal and financial structure and relations with its shareholders and Contract Owners, issuance of Fund Shares, and registration and qualification of securities under federal, state and other laws; 3 (j) membership or association dues for the Investment Company Institute or similar organizations; (k) interest payable on Fund borrowings; and (l) postage. 5. ADMINISTRATION FEE. (a) For the services and facilities to be provided by USAA Life as provided in paragraph 2 hereof, the Trust shall reimburse USAA Life, on a monthly basis in arrears, for the cost of providing the services under this Agreement; provided, however, that such reimbursement shall be subject to the Maximum Expense with respect to each Fund, as set forth in Exhibit A hereto. (b) USAA Life may, from time to time, and for such periods as it deems appropriate, voluntarily waive fees or otherwise reduce its compensation hereunder. 6. LIABILITY AND INDEMNIFICATION. (a) USAA Life. USAA Life shall exercise reasonable care in performing its services under this Agreement. USAA Life shall indemnify and hold the Trust, and its trustees, officers, and employees harmless from and against any and all loss, cost, damage and expense (a "Loss"), including reasonable expenses for counsel, incurred by it resulting from any claim, demand, action or suit relating to the performance of its duties under this Agreement, or any action or omission by it in the performance of its duties hereunder; provided, however, that this indemnification shall not apply to any Loss resulting from any action or inaction of the Trust constituting willful misconduct, bad faith or negligence in the performance of its duties or the reckless disregard of its duties under this Agreement. Prior to confessing any claim against it, which may be the subject of this indemnification, the Trust shall give USAA Life reasonable opportunity to defend against such claim in its own name or in the name of the Trust. (b) Trust. The Trust shall indemnify and hold USAA Life and its officers, directors and employees harmless from and against any and all loss, cost, damage and expense (a "Loss"), including reasonable expenses for counsel, incurred by it resulting from any claim, demand, action or suit relating to the performance of its duties under this Agreement, or any action or omission by it in the performance of its duties hereunder; provided, however, that this indemnification shall not apply to any Loss resulting from any action or inaction of USAA Life constituting willful misconduct, bad faith or negligence in the performance of its duties or the reckless disregard of its duties under this Agreement. Prior to confessing any claim against it which may be the subject of this indemnification, USAA Life shall give the Trust reasonable opportunity to defend against such claim in its own name or in the name of USAA Life. 7. CONFIDENTIALITY. (a) Trust records maintained by USAA Life under this Agreement shall be and remain the property of the Trust. USAA Life shall promptly surrender or make such records available to the Trust or its designee, without charge, except for reimbursement of expenses for the surrender of such documents, upon request by the Trust or upon termination of this Agreement. (b) USAA Life shall not disclose or use any records or information obtained hereunder in any manner whatsoever except as expressly authorized hereunder, and further, shall keep confidential any information 4 obtained pursuant to this Agreement with the Trust as set forth herein, and disclose such information only if the Trust has authorized such disclosure, or if such disclosure is expressly required by applicable federal or state regulatory authorities. 8. DURATION AND TERMINATION OF THIS AGREEMENT. (a) Duration. This Agreement shall become effective as of the date first set forth above and, unless terminated, shall continue in force from year to year thereafter, but only so long as such continuance is specifically approved annually (a) by the Trust's Board of Trustees or by a vote of a majority of the Funds' outstanding voting securities (as that term is defined in the 1940 Act) and (b) by a majority of the Trustees who are not parties to this Agreement or "interested persons" of any such party (as defined in the 1940 Act.) (b) Termination. This Agreement may be terminated at any time, without payment of any penalty, by vote of the Board of Trustees of the Trust or by vote of a majority of the outstanding shares (as defined in the 1940 Act), or by USAA Life on 60 days' written notice to the other party, subject to subparagraph (c) below with respect to Maximum Expenses. This Agreement shall automatically terminate upon its assignment by USAA Life; provided, however, that USAA Life may delegate its duties as provided in subparagraph (j) of paragraph 2 hereof. (c) Amendment. This agreement may be amended at any time by mutual agreement in writing of the parties hereto, provided that any such amendment is approved by a majority of the Trustees of the Trust who are not interested persons. Notwithstanding the foregoing, no change (including termination of this Agreement) to the Maximum Expenses set forth in Exhibit A shall take effect until the then current Maximum Expense has been in effect for at least one year and the Trust has received advance notice as required by subparagraph (b) above. 9. PRIOR AGREEMENT SUPERSEDED. This Agreement supersedes any prior agreement relating to the subject matter hereof between the parties. 10. SERVICES NOT EXCLUSIVE. The services of USAA Life to the Trust hereunder are not to be deemed exclusive, and USAA Life shall be free to render similar services to others so long as its services hereunder are not impaired thereby. 11. GOVERNING LAW This Agreement shall be construed in accordance with the laws of the State of Texas and the applicable provisions of the 1940 Act. To the extent the applicable law of the State of Texas, or any of the provisions herein, conflict with the applicable provisions of the 1940 Act, the latter shall control. 12. ENTIRE AGREEMENT. This is the complete and entire agreement as represented herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first set forth above. 5 USAA LIFE INVESTMENT TRUST USAA LIFE INSURANCE COMPANY By:__________________________ By:_________________________ Name: Christopher W. Claus Name: James M. Middleton Title: Senior Vice President Title: President 6 EXHIBIT A ---------- LISTING OF FUNDS AND MAXIMUM EXPENSES -------------------------------------
Name of Fund Maximum Expense ------------ --------------- USAA Life Growth & Income 0.60% USAA Life Aggressive Growth 0.95% USAA Life World Growth 0.95% USAA Life Diversified Assets 0.75% USAA Life Income 0.65%
(a) For purposes of this Agreement, Maximum Expense is based on the total Fund expenses for all Fund operations and activities, including but not limited to the expenses allocated to the Trust under section 4 of this Agreement, investment advisory expenses, and the cost of administrative services provided under this Agreement. Maximum Expense is computed as a percentage of the average net assets of the Fund for each month at the rate set forth in this Exhibit. (b) The schedule of Maximum Expenses as set forth herein shall remain in full force and effect for the life of this Agreement. (c) The "average net assets" of the Fund for any month shall be equal to the quotient produced by dividing (i) the sum of the net assets of such Fund, determined in accordance with procedures established from time to time by or under the direction of the Board of Trustees of the Trust, for each calendar day of such month, by (ii) the number of such days. 7 EX-5 7 e29675_ex5.txt ADMINISTRATIVE SERVICES AGREEMENT THIS AGREEMENT is made as of _______________, 20___, by and between USAA LIFE INSURANCE COMPANY, a stock life insurance company organized under the laws of the state of Texas and having a place of business in San Antonio, Texas ("USAA Life"), and USAA INVESTMENT MANAGEMENT COMPANY, a corporation under the laws of the state of Delaware and having a place of business in San Antonio, Texas ("IMCO"). RECITALS The USAA Life Investment Trust (the "Trust") is an open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, whose shares are registered under the Securities Act of 1933 (the "1933 Act"), as amended, and with shares offered in various investment funds as set forth in Exhibit A (the "Existing Funds") (such funds together with any funds subsequently established by the Trust for which the Trust retains USAA Life to provide administrative services being collectively referred to as the "Funds"). The Trust makes its shares available for purchase to the Separate Account of USAA Life Insurance Company and the Life Insurance Separate Account of USAA Life Insurance Company (the "Separate Accounts"), and to any other separate accounts of USAA Life or any of USAA Life's subsidiaries or affiliates, and to separate accounts of non-affiliated life insurance companies (all such eligible purchasers being referred to collectively as "Purchasers"). USAA Life issues variable annuity contracts and variable life insurance policies (collectively "Contracts") funded through the Separate Accounts. In addition, USAA Life invests certain assets of the Separate Accounts in the Trust for the benefit of the owners of the Contracts ("Contract Owners"). USAA Life desires to retain IMCO to provide certain administrative services to the Trust on USAA Life's behalf, and IMCO is willing to provide such services. AGREEMENT In consideration of the agreements contained herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, USAA Life and IMCO agree as follows: 1. APPOINTMENT OF IMCO (a) USAA Life appoints IMCO to provide administrative services for the period and on the terms set forth in this Agreement. Such services are provided to the Trust on behalf of USAA Life in connection with the Administrative Services Agreement between USAA Life and the Trust dated __________________, 20__. IMCO accepts such appointment and agrees to render the services herein set forth for the compensation herein provided. (b) IMCO shall be subject to the direction and control of USAA Life and the Trust in providing services under this Agreement, and shall provide such services in compliance with all applicable provisions of the Trust's Master Trust Agreement, Bylaws, Prospectus, and any applicable federal or state laws and regulations. 2. DUTIES OF IMCO IMCO shall provide administrative services to the Trust on behalf of USAA Life; provided, that IMCO shall not have any obligation under this Agreement to provide any services related to the distribution of fund shares or any other services that are the subject of separate agreements or arrangements between IMCO and USAA Life, or IMCO and the Trust. Subject to the foregoing, IMCO shall provide the following services and facilities to the Trust on behalf of USAA Life: (a) Office Space, Equipment and Facilities. Furnish such office space, office equipment and office facilities as are adequate for the services provided with respect to the Funds. (b) Personnel. Provide the services of individuals competent to perform all of the executive, administrative and clerical functions that are not performed by employees or other agents engaged by USAA Life or by IMCO acting in some other capacity pursuant to a separate agreement or arrangement with USAA Life or the Trust with respect to the Funds. (c) Agents. Assist USAA Life in selecting and coordinating the activities of the other agents engaged by USAA Life and the Trust with respect to the Funds, including the Trust's transfer agent, custodian, independent auditors, and legal counsel. (d) Trustees and Officers. Authorize and permit IMCO's directors, officers and employees who may be elected or appointed as trustees or officers of the Trust to serve in such capacities, without remuneration from or other cost to USAA Life or the Trust. (e) Books and Records. Assure that all financial, accounting and other records required to be prepared, maintained, and preserved by the Trust are prepared, maintained, and preserved by it or on its behalf in accordance with applicable laws and regulations. (f) Regulatory Reports and Filings. Prepare and file (as required) or arrange for others to prepare and file all proxy statements with respect to the Funds, all periodic reports by the Trust with respect to the Funds, and all reports and filings required to maintain the registration and qualification of the Trust and the Shares, or to meet other regulatory or tax requirements applicable to the Funds under federal and state securities and tax laws. (g) Board Reports. Prepare and coordinate materials relating to the Funds and the services provided under this Agreement to be presented to the Trust's Board of Trustees in preparation for its meetings. (h) Accounting. Provide all accounting services necessary or appropriate to conduct the Trust's business and day-to-day operations. (i) Fidelity Bond. Provide and maintain a bond issued by a reputable insurance company authorized to do business in the place where the bond is issued, against larceny and embezzlement covering each officer and employee of IMCO who may singly or jointly with others have access to funds or securities of the Trust, with direct or indirect authority to draw upon such funds or to direct generally the disposition of such funds. The bond shall be in such reasonable amount as a majority of the Board of Trustees of the Trust who are not officers or employees of IMCO or USAA Life shall determine, with due consideration to the aggregate assets of the Trust to which any such officer or employee may have access. (j) Delegation. Delegate, at its expense, some or all of its duties hereunder to other persons or entities approved by IMCO upon prior notice to and concurrence of USAA Life. 2 (k) Other Services. Provide such other services as the parties may from time to time agree upon in writing. 3. ADMINISTRATION FEE (a) For the services and facilities to be provided by IMCO as set forth in paragraph 2 above, and to the extent that the cost of services and facilities provided by IMCO to the Trust under the Investment Advisory Agreement between IMCO and the Trust exceed the advisory fee paid to IMCO under that agreement, USAA Life shall reimburse IMCO for the cost incurred in providing such services and facilities to the Trust, subject to paragraph (b) below. (b) To the extent that advisory or other fees paid to IMCO in connection with any services provided to the Trust under other agreements, including but not limited to IMCO's Investment Advisory Agreement with the Trust, exceed the cost of IMCO's providing services under such agreements, such excess shall be applied under this Agreement to reduce the amount of USAA Life's reimbursement under subparagraph (a). (c) IMCO may, from time to time, and for such periods as it deems appropriate, voluntarily waive fees or otherwise reduce its compensation hereunder. 4. LIABILITY AND INDEMNIFICATION. IMCO shall exercise reasonable care in performing its services under this Agreement. IMCO shall indemnify and hold USAA Life and the Trust, and their trustees, officers, and employees harmless from and against any and all loss, cost, damage and expense (a "Loss"), including reasonable expenses for counsel, incurred by it resulting from any claim, demand, action or suit relating to the performance of its duties under this Agreement, or any action or omission by it in the performance of its duties hereunder; provided, however, that this indemnification shall not apply to any Loss resulting from any action or inaction of USAA Life or the Trust constituting willful misconduct, bad faith or negligence in the performance of its duties or the reckless disregard of its duties under this Agreement. Prior to confessing any claim against it, which may be the subject of this indemnification, USAA Life or the Trust shall give IMCO reasonable opportunity to defend against said claim in its own name or in the name of USAA Life or the Trust. 5. CONFIDENTIALITY. (a) Trust records maintained by IMCO in connection with the services provided under this Agreement shall be and remain the property of the Trust. IMCO shall promptly surrender or make such records available to the Trust or its designee, without charge, except for reimbursement of expenses for the surrender of such documents, upon request by the Trust or upon termination of this Agreement. (b) IMCO shall not disclose or use any records or information obtained hereunder in any manner whatsoever except as expressly authorized hereunder, and further, shall keep confidential any information obtained pursuant to this Agreement with USAA Life as set forth herein, and disclose such information only if USAA Life or the Trust has authorized such disclosure, or if such disclosure is expressly required by applicable federal or state regulatory authorities. 6. DURATION AND TERMINATION OF AGREEMENT (a) Duration. This Agreement shall become effective as of the date first set forth above and, unless terminated, shall continue in force from year to year thereafter. 3 (b) Termination. This Agreement may be terminated at any time, without payment of any penalty, by either party on 120 days' written notice to the other party. This Agreement shall automatically terminate upon its assignment by IMCO. (c) Amendment. This agreement may be amended at any time by mutual agreement in writing of the parties hereto. 7. PRIOR AGREEMENT SUPERSEDED This Agreement supersedes any prior agreements relating to the subject matter hereof between the parties. 8. SERVICES NOT EXCLUSIVE The services of IMCO to USAA Life hereunder are not to be deemed exclusive, and IMCO shall be free to render similar services to others so long as its services hereunder are not impaired thereby. 9. GOVERNING LAW This Agreement shall be construed in accordance with the laws of the State of Texas and the applicable provisions of the 1940 Act. To the extent the applicable law of the State of Texas, or any of the provisions herein, conflict with the applicable provisions of the 1940 Act, the latter shall control. 10. ENTIRE AGREEMENT This is the complete and entire agreement as represented herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first set forth above. USAA LIFE INSURANCE COMPANY USAA INVESTMENT MANAGEMENT COMPANY By: _______________________ By: _______________________________ James M. Middleton Christopher W. Claus President & CEO President 4 EXHIBIT "A" LISTING OF FUNDS ================ Name of Fund ------------ USAA Life Growth & Income USAA Life Aggressive Growth USAA Life World Growth USAA Life Diversified Assets USAA Life Income 5 EX-6 8 e29912_ex6.txt Consent of Independent Auditors The Board of Directors of USAA Life Insurance Company and Policyowners of the Life Insurance Separate Account of USAA Life Insurance Company: We consent to the use of our report included herein for the Life Insurance Separate Account of USAA Life Insurance Company and to the reference to our firm under the heading "Independent Auditors" in the Registration Statement. /s/ KPMG San Antonio, Texas March 17, 2003 EX-7 9 e29912_ex7.txt CONSENT OF ---------- KIRKPATRICK & LOCKHART LLP -------------------------- We hereby consent to the reference to our firm under the caption "Legal Matters" in the Statement of Additional Information of Post-Effective Amendment No. 7 under the Securities Act of 1933 and Post-Effective Amendment No. 2 under the Investment Company Act of 1940 to the Form N-6 Registration Statement of Life Insurance Separate Account of USAA Life Insurance Company, as registrant, and USAA Life Insurance Company, as depositor, Securities Exchange Commission File Nos. 333-45343 and 811-08625. /s/ KIRKPATRICK & LOCKHART LLP Washington, D.C. March 12, 2003 DC-560646 v2 0306406-0103 EX-8 10 e29675_ex8.txt EXHIBIT R PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE REGISTRANT Below is a list of all persons directly or indirectly controlled by or under common control with the Registrant and (i) the state of organization, (ii) the basis of control, and (iii) the principal business for each entity: 1. ROBERT G. DAVIS (ATTORNEY-IN-FACT and Ultimate Controlling Person) --------------- Robert G. Davis was appointed Attorney-in-Fact and Ultimate Controlling Person on April 2, 2000. 1a. UNITED SERVICES AUTOMOBILE ASSOCIATION (Parent Company/Insurer/Holding -------------------------------------- Company) (A Reciprocal Interinsurance Exchange) The purpose of USAA is to provide insurance coverage (personal-line property and casualty policies only) for eligible "members." Essentially, eligibility for subscribership is limited to active, inactive and retired commissioned officers and warrant officers of the United States Army, Navy, Air Force, Marine Corps, Coast Guard, Reserves, National Guard and a limited group of other related personnel. 1b. USAA CORPORATE ATTORNEY IN FACT, INC. (A Delaware non-insurance ------------------------------------- corporation) The purpose of USAA CORPORATE ATTORNEY IN FACT, INC. is to be the corporate attorney in fact of Garrison Property & Casualty Association, acquired by USAA on December 31, 1997. 1c. GARRISON PROPERTY AND CASUALTY ASSOCIATION (A Texas Reciprocal ------------------------------------------ Interinsurance Exchange) The purpose of the Association is to provide insurance coverage (personal-line property and casualty policies only) for persons not eligible for current USAA property and casualty coverage. 1d. USAA TEXAS LLOYD'S COMPANY(A Texas Lloyd's Insurance Company) -------------------------- The purpose of this company is to provide insurance coverage (personal-line property and casualty policies only) to Texas residents. 2. USAA LIFE INSURANCE COMPANY --------------------------- (Wholly-owned subsidiary of United Services Automobile Association) The company was initially organized to provide members of United Services Automobile Association and dependents of such members with complete life insurance products and services. Commencing in 1981, the purpose of this company was expanded to make available complete life insurance services and products to the general public. 3. USAA LIFE GENERAL AGENCY, INC. ------------------------------ (Wholly-owned subsidiary of USAA Life Insurance Company) This Colorado company was organized as a subsidiary of USAA Life Insurance Company to offer a complete line of life and health insurance products to the general public on a brokerage basis. 1 4. USAA LIFE INSURANCE COMPANY OF NEW YORK (REGISTRANT) --------------------------------------- (Wholly-owned subsidiary of USAA Life Insurance Company) This company was organized to provide life insurance and annuity products to residents of New York. 5. USAA INSURANCE AGENCY, INC. (Alabama) (DISSOLVED 06/02) -------------------------- (Wholly-owned subsidiary of USAA Life Insurance Company.) This Alabama company was organized as a subsidiary of USAA Life Insurance Company to offer a complete line of life and health insurance products to the general public on a brokerage basis. 6. USAA GENERAL INDEMNITY COMPANY ------------------------------ (Wholly-owned subsidiary of United Services Automobile Association) The primary purpose of this company is to provide federal flood insurance to USAA members and former dependents and to provide automobile insurance for members residing in California. 7. USAA CASUALTY INSURANCE COMPANY ------------------------------- (Wholly-owned subsidiary of United Services Automobile Association) The purpose of this company is to service the insurance needs of persons who do not meet the subscribership eligibility requirements of United Services Automobile Association but are: (1) residual market policyholders under Automobile Insurance Plans of the various states, (2) non-dependent children of United Services Automobile Association members, (3) assigned risks, and/or (4) senior Foreign officers of the United States government. 8. USAA COUNTY MUTUAL INSURANCE COMPANY ------------------------------------ (Wholly-owned subsidiary of United Services Automobile Association) The purpose of this company is to provide auto insurance to USAA Group - eligible drivers who reside in Texas. 9. USAA GENERAL AGENCY, INC. ------------------------- (Wholly-owned subsidiary of United Services Automobile Association) This company was organized as a subsidiary of United Services Automobile Association to act as a managing general insurance agency for property and casualty insurance products offered by non-USAA companies. The services of this company are available to the general public. 10. USAA INSURANCE AGENCY, INC. (California) --------------------------- (Wholly-owned subsidiary of USAA General Agency, Inc.) This company provides insurance coverage to USAA members and associate members for selected coverages not offered by USAA. Organized to provide certain property and casualty personal-line coverages not offered directly by USAA to USAA members, their dependents, and former dependents. 11. USAA INSURANCE AGENCY, INC. (Florida) --------------------------- (Wholly-owned subsidiary of USAA General Agency, Inc.) A Florida corporation organized to provide insurance coverage to USAA members and associate members for selected coverages not offered by USAA. 2 12. USAA INSURANCE AGENCY, INC. (Massachusetts) --------------------------- (Wholly-owned subsidiary of USAA General Agency, Inc.) A Massachusetts corporation organized to provide insurance coverage to USAA members and associate members for selected coverages not offered by USAA. 13. USAA LIMITED ------------ (Wholly-owned subsidiary of United Services Automobile Association) The primary purpose of the company is to provide members of United Services Automobile Association who are situated in the United Kingdom with automobile liability and property damage insurance which meets the requirements of the British Road Traffic Act. As a reciprocal exchange, and thus unincorporated, the parent organization may not be licensed by the British Board of Trade. 14. USAA FUNDING COMPANY -------------------- (Wholly-owned subsidiary of United Services Automobile Association) This company was initially and primarily organized to facilitate the acquisition of preferred stock issued by USAA insurance companies. 15. USAA PROPERTY HOLDINGS, INC. ---------------------------- (Wholly-owned subsidiary of United Services Automobile Association) This company was formed to invest in certain real estate limited partnerships the assets of which are comprised of housing units which qualify for significant federal tax credits. 16. CAPITAL MANAGEMENT COMPANY -------------------------- (Wholly-owned indirect subsidiary of United Services Automobile Association) This company serves as a unitary savings and loan holding company of USAA Federal Savings Bank. 17. USAA ALLIANCE SERVICES COMPANY ------------------------------ (Wholly-owned subsidiary of United Services Automobile Association) This company was organized to engage in the business of wholesale and retail sales of goods and to provide consumer-oriented and travel agency services to customers, subscribers and the general public. 18. USAA MERCHANDISE SERVICES COMPANY --------------------------------- (Wholly-owned subsidiary of USAA Alliance Services Company) This company was organized to act as a corporate General Partner for USAA Alliances Services Company. 19. USAA ALLIANCE SERVICES, L.P. ---------------------------- This partnership was organized to provide travel and discount buying services through a limited partnership structure. USAA owns 99% of the Partnership as a Limited Partner with the remaining 1% owned by USAA Alliance Services Company as General Partner. *20. THE USAA EDUCATIONAL FOUNDATION ------------------------------- The USAA Educational Foundation is a not-for-profit Texas corporation which funds selected informational and educational payments. 3 *21. THE USAA FOUNDATION, A CHARITABLE TRUST --------------------------------------- The USAA Foundation, is a Trust organized by USAA for charitable giving purposes. *22. USAA POLITICAL ACTION COMMITTEE ------------------------------- (Political Action Committee of United Services Automobile Association) The USAA Political Action Committee is an unincorporated association of USAA officers and senior management which is organized under Federal and Texas laws. *23. USAA GROUP MEDICAL AND DENTAL AND LONG-TERM DISABILITY PLAN ----------------------------------------------------------- (USAA Employee Benefits Association) This employee benefit association was organized for the purpose of providing medical and dental benefits for active and retired USAA employees and Long-Term Disability Benefits to disabled employees. *24. USAA SAVINGS AND INVESTMENT PLAN -------------------------------- This is a defined benefit plan formed in accordance with applicable federal law by the USAA Board of Directors, for the benefits of USAA, its affiliates and subsidiaries. *25. USAA PENSION PLAN ----------------- This is a defined benefit plan formed in accordance with applicable federal law by the USAA Board of Directors, for the benefit of USAA, its affiliates and subsidiaries. 26. USAA INFORMATION TECHNOLOGY COMPANY ----------------------------------- (Wholly-owned subsidiary of United Services Automobile Association) The purpose of this corporation is to provide certain information technology services to the USAA group of companies. 27. USAA CAPITAL CORPORATION ------------------------ (Wholly-owned subsidiary of United Services Automobile Association) This company is a Unitary Diversified Savings and Loan Company organized as a Delaware corporation. It acts as a holding company for all USAA non-insurance companies (except USAA Funding Company and USAA Property Holdings, Inc.) and as a general purpose financing company for USAA, its subsidiaries and affiliates. * Not an affiliate for purposes of the Insurance Holding Company System Regulatory Act. 28. USAA FINANCIAL SERVICES CORPORATION ----------------------------------- (Wholly-owned subsidiary of USAA Capital Corporation) Incorporated under the Utah Revised Business Corporation Act and licensed as a Utah Industrial Loan Company. 29. HTO, INC. (MERGED 12/02) ------------------------ (A Wholly-owned subsidiary of USAA Capital Corporation) This company was organized for ownership of certain real property and mineral assets in the La Cantera Development and other legally permissible corporate activities. 4 30. INSTITUTIONAL REALTY INVESTORS, INC. (DISSOLVED 09/02) ------------------------------------------------------ (Wholly-owned subsidiary of USAA Capital Corporation) The purpose of this company is to acquire a geographically diverse portfolio consisting primarily of industrial properties located in major metropolitan markets in the United States. The corporation will offer shares of the common stock of the company primarily to tax-qualified "employee pension benefit plans" covered by Title I of ERISA. 31. USAA CAPITAL DEVELOPMENT, INC. ------------------------------ (Wholly-owned subsidiary of USAA Capital Corporation). This company was formed to engage in real estate investment, management and other legally permissible corporate activities. 32. USAA FINANCIAL PLANNING NETWORK, INC. ------------------------------------- (DBA: USAA FINANCIAL PLANNING SERVICES, INC.) (Wholly-owned subsidiary of USAA Capital Corporation) The company was organized to engage in the business of providing personalized financial planning services to the general public. 33. USAA INVESTMENT CORPORATION --------------------------- (Wholly-owned subsidiary of USAA Capital Corporation) This company serves as a holding company for USAA Investment Management Company and USAA Transfer Agency Company. 34. USAA LOAN COMPANY, INC. ----------------------- (Wholly-owned subsidiary of USAA Capital Corporation) The company's purpose is to engage in the purchase, acquisition and sale of consumer loans on behalf of the USAA group of companies. 35. USAA INVESTMENT MANAGEMENT COMPANY ---------------------------------- (Wholly-owned subsidiary of USAA Investment Corporation) This company serves as the financial manager and investment advisor of the certain mutual funds and as the exclusive underwriter and distributor of their shares. It carries out the investment policies of the mutual funds, manages their portfolios, markets their shares and provides certain administrative services. This company also provides investment management and advisory services for the benefit of United Services Automobile Association and its affiliated companies. This company serves as broker-dealer for investment instruments (common stock, preferred stock and corporate bonds) of publicly traded corporations offered on major stock exchanges and offers discount brokerage services. 36. USAA TRANSFER AGENCY COMPANY ---------------------------- (DBA: USAA SHAREHOLDER ACCOUNT SERVICES) (Wholly-owned subsidiary of USAA Investment Corporation) This company engages in the business of facilitating the prompt and accurate clearance and settlement of securities transactions, to safeguard funds and securities in its custody or control or for which it is responsible in compliance with the provisions of the Securities and Exchange Act of 1934, Section 17A. 5 37. USAA TRACO SERVICE, GmbH, Inc. ------------------------------ (80% owned by USAA Investment Management Co. - 20% owned by USAA Transfer Agency Co.) No current corporate operations. 38. USAA FEDERAL SAVINGS BANK ------------------------- (Wholly-owned subsidiary of USAA Capital Corporation) This company was organized to offer personal banking services to the general public. 39. USAA RELOCATION SERVICES, INC. ------------------------------ (Wholly-owned subsidiary of USAA Federal Savings Bank) The purpose of the corporation is to provide nationwide counseling services for customers contemplating moving and the sale or purchase of a home, through its association with PHH Destination Services, the industry leader in relocation services. 40. USAA SAVINGS BANK ------------------ (Wholly-owned subsidiary of USAA Federal Savings Bank) Organized to engage in the activities of a Nevada chartered thrift company. 41. USAA FINANCIAL ADMINISTRATION COMPANY ------------------------------------- FAC acts as the General Partner of USAA Financial Partners Limited, L.P., a limited partnership established to enable USAA Federal Savings Bank to continue to maintain low cost funding sources, diversify its funding sources, manage interest rate risk and more efficiently manage tax and other liabilities associated with its credit card business. USAA Federal Savings Bank owns 100% of the Class A Common (voting) Stock of the company; USAA owns 100% of the Class B Common (nonvoting) Stock. 42. CAPITAL FINANCIAL RESOURCES COMPANY ----------------------------------- CFRC acts as the Limited Partner of USAA Financial Partners Limited, L.P., a limited partnership established to enable USAA Federal Savings Bank to continue to maintain low cost funding sources, diversify its funding sources, manage interest rate risk and more efficiently manage tax and other liabilities associated with its credit card business. USAA Federal Savings Bank owns 100% of the Class A Common (voting) Stock of the company; USAA owns 100% of the Class B Common (nonvoting) Stock. 43. USAA FINANCIAL PARTNERS LIMITED, L.P. ------------------------------------- The Partnership was established to enable USAA Federal Savings Bank to continue to maintain low cost funding sources, diversify its funding sources, manage interest rate risk and more efficiently manage tax and other liabilities associated with its credit card business. USAA Financial Administration Company owns 1% of the partnership as General Partner. Capital Financial Resources Company owns 99% as Limited Partner. 44. LA CANTERA DEVELOPMENT COMPANY ------------------------------ (Wholly-owned subsidiary of USAA Capital Corporation) This company was formed to develop or sell land in northwest San Antonio, Texas. 6 45. LA CANTERA GROUP, Limited Partnership (DISSOLVED 12/02) ------------------------------------------------------- The purpose of the Partnership is to acquire own hold, develop, rezone, manage, operate, lease, finance, mortgage, sell and otherwise deal with certain real property located in San Antonio, Bexar County, Texas. La Cantera Development Company, a subsidiary of USAA Capital Corporation owns 51% of the Partnership with the remaining 49% owned by La Cantera Innovations, Inc. a subsidiary of La Cantera Development Company. 46. FIESTA TEXAS THEME PARK, LTD. (DISSOLVED 12/02) ----------------------------------------------- The purpose of the Partnership is to acquire, own, hold, develop, rezone, manage, operate, lease, finance, mortgage, sell and otherwise deal with a parcel of real property containing approximately 180.969 acres and located in San Antonio, Bexar County, Texas, and to operate the theme park constructed on said parcel of property. La Cantera Group, Limited. owns 85.89% of the Partnership as General Partner, with the remaining 14.11% owned La Cantera Innovations, Inc. 47. LA CANTERA PROPERTIES, INC. (MERGED 12/02) ------------------------------------------ (Wholly-owned subsidiary of La Cantera Development Company) The company was organized for the purpose of acquiring, developing, owning, managing, and/or disposing of real estate. 48. LA CANTERA HOSPITALITY, INC. (MERGED 12/02) ------------------------------------------- (A Wholly-owned subsidiary of La Cantera Development Company) This company was organized to develop and own a hotel, resort and golf course. 49. LA CANTERA RESORT, LTD. (DISSOLVED 12/02) ----------------------------------------- The purpose of the Partnership is to acquire, develop, own, and operate a resort property located in Bexar County, Texas. La Cantera Hospitality, Inc. owns 93% of the Partnership as a Limited Partner. La Cantera Innovations, Inc. owns the remaining 7% as General Partner. *50. LCWW PARTNERS JOINT VENTURE --------------------------- The purpose of this joint venture is to acquire, develop, own and operate a resort property in Bexar County, Texas. La Cantera Resort, Ltd. Owns 76.67% as the Managing Venturer of this joint venture, with the remaining portion owned by a non-affiliated entity as Venturer. Although La Cantera Resort, Ltd. owns a larger percentage of the venture, the two Venturers have an equal vote in the management of the venture, therefore La Cantera Resort, Ltd. does not "control" the venture 51. USAA REAL ESTATE COMPANY ------------------------ (Wholly-owned subsidiary of USAA Capital Corporation) This company was organized to engage in the business of acquisition, development, ownership and sale of land, real estate and other property or securities by purchase, lease or otherwise. The purpose of the company has expanded to make a wide variety of real estate/financial services to its affiliates, subsidiaries, and the general public. 7 52. USAA REAL ESTATE DEVELOPMENT COMPANY ------------------------------------ (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized to engage in the development of various real estate projects including, but not limited to, the Retirement Community Project. 53. USAA REAL ESTATE MANAGEMENT COMPANY ----------------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized to provide management services for properties owned by USAA Real Estate Development Company. 54. QUORUM REAL ESTATE SERVICES CORPORATION --------------------------------------- (DBA: USAA REALTY COMPANY) (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized for the purpose of managing USAA-owned real estate in Florida and the Southeast. 55. USAA PROPERTIES FUND, INC. (MERGED 08/02) ----------------------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized to serve as General Partner of various real estate limited partnerships involving United Services Automobile Association. * Not an affiliate for purposes of the Insurance Holding Company System Regulatory Act 56. USAA PROPERTIES II, INC. ------------------------ (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized to serve as General Partner of various real estate limited partnerships involving United Services Automobile Association. 57. LA PAZ, INC. (MERGED 12/02) --------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized for the purpose of owning and managing an office building complex. 58. USAA REAL ESTATE EQUITIES REIT ------------------------------ (Subsidiary of USAA Real Estate Company) This company was organized as a real estate investment trust (REIT). USAA Real Estate Company owns 82% of the Corporation with the remaining 18% held by numerous non-affiliated shareholders. 59. USAA EQUITY ADVISORS, INC. -------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized to provide advisory services to USAA Real Estate Equities REIT 60. ALHAMBRA GABLES ONE, INC. ------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was formed for the purpose of acquiring certain property in Florida. 8 61. L.A. WILSHIRE ONE, INC. ----------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized for the purpose of acquiring certain property in California. 62. USAA REAL ESTATE MID-WEST, INC. (MERGED 12/02) ---------------------------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) This company was organized for the purpose of acquiring ,developing, owning, managing, and/or disposing of real estate. 63. LAS COLINAS MANAGEMENT COMPANY (MERGED 12/02) --------------------------------------------- (Wholly-owned subsidiary of USAA Real Estate Company) The principal purpose of the company is to acquire, develop, manage and operate real estate. 64. USAA INCOME PROPERTIES LIMITED PARTNERSHIP ------------------------------------------ The purpose of the Partnership is to invest in, acquire, construct, develop, improve, hold, maintain, manage, operate, lease, sell, dispose of certain properties and otherwise deal with real estate, real estate improvements or interests in real estate and real estate improvements, and to engage in any and all activities related or incidental thereto. USAA Properties Fund, Inc., a subsidiary of USAA Real Estate Company is the General Partner of this Limited Partnership. 65. USAA STRATUM EXECUTIVE CENTER JOINT VENTURE ------------------------------------------- The purpose of the Joint Venture is to develop land situated in Travis County, Texas, said tract being more particularly described as being all of Lot 1, Hermosa Office Park P.U.D., a subdivision in the City of Austin. USAA Real Estate Company owns 70% of the Joint Venture with the remaining 30% owned by USAA Real Estate Development Company. 66. USGC JOINT VENTURE ------------------ The purpose of the Joint Venture is to acquire, own, finance, lease, operate and otherwise deal with Windsor IX and to acquire, own, finance, lease, operate and otherwise deal with Windsor X following the contribution of the Owners' equity interests in Windsor X to the Joint Venture. USAA Real Estate Company owns 70% of the Joint Venture with the remaining 30% owned by Land Resources, Inc. 67. USAA REAL ESTATE LIMITED PARTNERSHIP ------------------------------------ The purpose of the Partnership is (i) to acquire, own, hold, develop, rezone, manage, operate, lease, finance, mortgage, sell and otherwise deal with certain real estate property, (ii) sell all or any portion of certain real estate property to buyers, including Affiliates or any Partner, and (iii) conduct such other activities as may be necessary, advisable, convenient or appropriate to promote or conduct the business of the Partnership. 9 68. CHELMSFORD ASSOCIATES, LLC -------------------------- The purpose of this limited liability company is to acquire an interest in, construct, develop, improve, maintain and operate the property and in connection with or incidental to the accomplishment of said purpose to enter into any kind of activity and to perform and carry out contracts. American Industrial Properties REIT owns 55.84% of the company with the remaining 44.16% owned by USAA Real Estate Company. 69. COLUMBUS CENTER ASSOCIATES, LTD. -------------------------------- (formerly BPG/STRADLER ASSOCIATES, LTD.) The purpose of the Partnership is to invest in, hold, own, operate, maintain, improve, develop, sell, exchange, lease, and otherwise use certain property or direct or indirect interests therein, for profit and as an investment. Alhambra Gables One, Inc. a wholly-owned subsidiary of USAA Real Estate Company is the General Partner of this Florida Limited Partnership. 70. 5055 WILSHIRE LIMITED PARTNERSHIP --------------------------------- The purpose of the Partnership is to develop, construct, own, hold, manage, operate, rent, maintain and repair and otherwise deal with the improvements and project land and to own, hold, manage and operate protect, preserve and enhance the value of additional land. The Partnership consists of the following ownership percentages: USAA Real Estate Company 94%; USAA Properties II, Inc. 1.6% and the remaining .4% owned by L.A. Wilshire One, Inc., subsidiaries of USAA Real Estate Company. 71. CORAL GABLES ASSOCIATES ----------------------- The purpose of the Partnership is to acquire, own, hold, develop, rezone, manage, operate, lease, finance, mortgage, sell and otherwise deal with that certain parcel of real property located in the city of Coral Gales, Dade County, Florida. Columbus Center Associates, Ltd. (Managing Partner) owns 50% of the Partnership with the other 50% being owned by International Business Machines Corporation. 72. WEST CHICAGO INDUSTRIAL, LTD. (MERGED 12/02) -------------------------------------------- The purpose of the Partnership is to acquire, own, hold, develop, rezone, manage, operate, lease, finance, mortgage, sell and otherwise deal with that certain parcel of real property located in Chicago, Du Page County, Illinois. La Paz, Inc., owns 99% of the Partnership with the remaining 1% owned by USAA Real Estate Midwest, Inc. 73. LAS COLINAS - USAA LIMITED PARTNERSHIP -------------------------------------- The Partnership was organized to manage a resort complex and to develop a large tract of land and the surrounding area in Irving, Texas. United Services Automobile Association owns 91% of the Partnership, with the remaining 9% owned by Las Colinas Management Company as General Partner. 10 74. PRIME REAL ESTATE EQUITIES I, L.P. ---------------------------------- The purpose of the partnership is to acquire, own, develop, lease, operate, manage, finance and hold for investment, office or industrial property. Prime Real Estate Equities I, L. P. is composed of USAA Real Estate Equities, Inc. with a 0.1% general partnership interest and National Equities, L. L. C. with a 0.1% general partnership interest; USAA Real Estate Equities, Inc. with an 38.7% limited partnership interest, U. S. Property Fund GmbH & Co., KG with a 57.5% limited partnership interest and USAA Real Estate Company with a 3.6% limited partnership interest. 75. PRIME REAL ESTATE EQUITIES II, L.P. ----------------------------------- The purpose of the partnership is to acquire, own, develop, lease, operate, manage, finance and hold for investment, office or industrial property. Prime Real Estate Equities II, L. P. is composed of USAA Real Estate Equities, Inc. with a 0.1% general partnership interest and National Equities, L. L. C. with a 0.1% general partnership interest; USAA Real Estate Equities, Inc. with an 38.7% limited partnership interest, U. S. Property Fund GmbH & Co., KG with a 57.5% limited partnership interest and USAA Real Estate Company with a 3.6% limited partnership interest. 76. SAN DIEGO EQUITIES REIT I ------------------------- The purpose of this trust is to acquire, own, lease, operate, manage, finance and hold for investment, office property. San Diego Equities REIT I is composed of USAA Real Estate Company with a 49.942% ownership interest, SITQ BST-REIT I, L.P. with a 49.921% ownership interest and 125 outside investors with a .137% ownership. 77. WASHINGTON REAL ESTATE EQUITIES REIT I -------------------------------------- The purpose of this trust is to acquire, own, lease, operate, manage, finance and hold for investment, office property. Washington Real Estate Equities REIT I is composed of USAA Real Estate Company with a 49.883% ownership interest, SITQ BST-REIT I with a 49.863% ownership interest and 125 outside investors with a .254% ownership interest. 78. LCMC PARKING LOT L.P. --------------------- The purpose of this partnership is to maintain a parking lot for excess parking for the hotel and golf tournaments. LCMC Parking Lot L.P. is composed of Las Colinas Management Co. with a 1% ownership interest, Las Colinas-USAA Limited Partnership with a 49% ownership interest and Salesmanship Club of Dallas with a 50% ownership interest. 79. HOUSTON EQUITIES REIT I ----------------------- The purpose of this trust is to acquire, own, lease, operate, manage, finance and hold for investment, office property. Houston Equities REIT I is composed of USAA Real Estate Limited Partnership with a 50.01% ownership interest and SITQ BST-REIT I with a 49.99% ownership interest. 11 80. TAMPA EQUITIES REIT I --------------------- The purpose of this trust is to acquire, own, lease, operate, manage, finance and hold for investment, office property. Tampa Equities REIT I is composed of USAA Real Estate Company with a 49.872% ownership interest, SITQ BST-REIT L.P. with a 49.845% ownership interest and 125 outside investors with a .283% ownership interest. 81. 1001 MCKINNEY VENTURE L.P. -------------------------- The purpose of this partnership is to acquire, own, lease, operate, manage, finance and hold for investment, office property. 1001 McKinney Venture L.P. is composed of Houston Equities REIT I with a 75% ownership interest and 1001 McKinney L.P. with a 25% ownership interest. 82. MLDC, L.P. ---------- The purpose of this partnership is to develop property to lease, operate, manage, finance and hold for investment and office property. MLDC, L.P. is composed of USAA Real Estate Company with a 79% ownership interest and Newcastle Distribution Center, LLC with a 21% ownership interest. 83. USAA INSTITUTIONAL REAL ESTATE EQUITIES L.P. -------------------------------------------- The purpose of this partnership is to acquire, own, lease, operate, manage, finance and hold for investment, office property. USAA Institutional Real Estate Equities L.P. is composed of USAA Real Estate Company as General Partner with a .1% ownership interest, USAA Real Estate Company as a Limited Partner with a 29.9% ownership interest and Utah State Retirement Office with a 70% ownership interest. 84. 225 WEST WASHINGTON L.L.C. -------------------------- The purpose of this limited liability company is to acquire, own, lease, operate, manage, finance and hold for investment, office property. 225 West Washington L.L.C. is composed of USAA Real Estate Limited Partnership with a 50% ownership interest and Tennessee Consolidated Retirement System with a 50% ownership interest. 85. US INDUSTRIAL REIT ------------------ The purpose of this trust is to acquire, lease, operate, manage, finance and hold for investment industrial property. US Industrial REIT is owned 100% by USAA Real Estate Limited Partnership. 86. COMMERCE CENTER PARK I, L.L.C. ------------------------------ The purpose of this limited liability company is to acquire, lease, operate, manage, finance and hold for investment, industrial property in University Park, Illinois. Commerce Center Park I, L.L.C. is owned 100% by USAA Real Estate Limited Partnership. 12 87. COBALT CAPITAL PARTNERS, L.P. ----------------------------- The purpose of this limited partnership to acquire, lease, operate, manage, finance and hold for investment, industrial property. Cobalt Capital Partners, L.P. is composed of Cobalt Capital Management, L.P. with a 20% ownership interest and USAA Real Estate Limited Partnership with an 80% ownership interest. 88. COBALT INDUSTRIAL PARTNERS, L.P. -------------------------------- The purpose of this limited partnership is to acquire, lease, operate, manage, finance and hold for investment, industrial property. Cobalt Industrial Partners, L.P. is composed of USAA Real Estate Limited Partnership with a 98.2% ownership interest, Cobalt Capital Partners, L.P. with a 1% ownership interest and Friedland Family Partners with a .08% ownership interest. 89. USAA LIFE INVESTMENT TRUST -------------------------- Mutual fund underlying Separate Account of USAA Life funding variable annuity insurance product, and organized as a Delaware business trust. USAA Life Insurance Company, either directly or through the Separate Account of USAA Life Insurance Company, currently owns a majority of certain series of shares issued by the Registrant. The Registrant's audited financial statements are incorporated by reference into Part B of the Registrant's Form N-1A Registration Statement ("Registration Statement"). No financial statements of any other company listed above are filed with the Registrant's Statement, as they are not required to be so filed. 90. SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY ----------------------------------------------- Investment account organized under the laws of the State of Texas. USAA Life Insurance Company is the depositor. 91. LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY -------------------------------------------------------------- (REGISTRANT) Investment account organized under the laws of the State of Texas. USAA Life Insurance Company is the depositor. * Not an affiliate for purposes of the Insurance Holding Company System Regulatory Act 13 -----END PRIVACY-ENHANCED MESSAGE-----