-----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, B5mAb++lJeQj+ddrg1A6KoW9AjomLkRuVPL6VSZJ2YqiZJK3r3s0ABRQmn/B/PP0 c+MSne/DZxZNjUjcVl5Fmw== 0000837276-03-000219.txt : 20031112 0000837276-03-000219.hdr.sgml : 20031111 20031112132503 ACCESSION NUMBER: 0000837276-03-000219 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20031112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE CO CENTRAL INDEX KEY: 0000836687 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-30180 FILM NUMBER: 03992634 BUSINESS ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: SUITE 400 CITY: WEST CHESTER STATE: PA ZIP: 19380-1478 BUSINESS PHONE: 610-425-3516 MAIL ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: P. O. BOX 2700 CITY: WEST CHESTER STATE: PA ZIP: 19380-2700 FORMER COMPANY: FORMER CONFORMED NAME: SPECIALTY MANAGERS SEPARATE ACCOUNT B DATE OF NAME CHANGE: 19910529 FORMER COMPANY: FORMER CONFORMED NAME: WESTERN CAPITAL SPECIALTY MANAGERS SEPARATE ACCOUNT B DATE OF NAME CHANGE: 19890914 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE CO CENTRAL INDEX KEY: 0000836687 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05626 FILM NUMBER: 03992635 BUSINESS ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: SUITE 400 CITY: WEST CHESTER STATE: PA ZIP: 19380-1478 BUSINESS PHONE: 610-425-3516 MAIL ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: P. O. BOX 2700 CITY: WEST CHESTER STATE: PA ZIP: 19380-2700 FORMER COMPANY: FORMER CONFORMED NAME: SPECIALTY MANAGERS SEPARATE ACCOUNT B DATE OF NAME CHANGE: 19910529 FORMER COMPANY: FORMER CONFORMED NAME: WESTERN CAPITAL SPECIALTY MANAGERS SEPARATE ACCOUNT B DATE OF NAME CHANGE: 19890914 485APOS 1 n4landmark.txt REGISTRATION STATEMENT AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON November 12, 2003 Registration Nos. 333-30180, 811-5626 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. [ ] Post-Effective Amendment No. 14 [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. [X] (Check appropriate box or boxes) SEPARATE ACCOUNT B (Exact Name of Registrant) GOLDEN AMERICAN LIFE INSURANCE COMPANY (Name of Depositor) 1475 Dunwoody Drive West Chester, Pennsylvania 19380-1478 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (610) 425-3400 Linda E. Senker, Esq. Kimberly J. Smith, Esq. ING ING 1475 Dunwoody Drive 1475 Dunwoody Drive West Chester, PA 19380-1478 West Chester, PA 19380-1478 (610) 425-4139 (610) 425-3427 (Name and Address of Agent for Service) Approximate Date of Proposed Public Offering: As soon as practical after the effective date of the Registration Statement 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 [X] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on (date) 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 of Securities Being Registered: Deferred Combination Variable and Fixed Annuity Contracts - ------------------------------------------------------------------------------- Approximate date of Proposed Public Offering: As soon as practicable after the effectiveness of this Registration Statement. Title of Securities Being Registered: Interests in a separate account under flexible premium deferred variable annuity contracts. The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. - -------------------------------------------------------------------------------- PART A - -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY PROSPECTUS GOLDENSELECT LANDMARK - -------------------------------------------------------------------------------- FEBRUARY XX, 2004 This prospectus describes GoldenSelect Landmark, a group and individual deferred variable annuity contract (the "Contract") offered by ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we," "us" or "our"). The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("qualified Contracts") as well as those that do not qualify for such treatment ("non-qualified Contracts"). The Contract provides a means for you to invest your premium payments in one or more mutual fund investment portfolios. You may also allocate premium payments to our Fixed Account with guaranteed interest periods. Your contract value will vary daily to reflect the investment performance of the investment portfolio(s) you select and any interest credited to your allocations in the Fixed Account. For Contracts sold in some states, not all Fixed Interest Allocations or subaccounts are available. The investment portfolios available under your Contract and the portfolio managers are listed on the next page. You have a right to return a Contract within 10 days after you receive it for a refund of the adjusted contract value (which may be more or less than the premium payments you paid), or if required by your state, the original amount of your premium payment. Longer free look periods apply in some states and in certain situations. REPLACING AN EXISTING ANNUITY WITH THE CONTRACT MAY NOT BE BENEFICIAL TO YOU. YOUR EXISTING ANNUITY MAY BE SUBJECT TO FEES OR PENALTIES ON SURRENDER, AND THE CONTRACT MAY HAVE NEW CHARGES. This prospectus provides information that you should know before investing and should be kept for future reference. A Statement of Additional Information ("SAI"), dated February XX, 2004, has been filed with the Securities and Exchange Commission ("SEC"). It is available without charge upon request. To obtain a copy of this document, write to our Customer Service Center at P.O. Box 9271, Des Moines, Iowa 50306-9271 or call (800) 366-0066, or access the SEC's website (http://www.sec.gov). The table of contents of the SAI is on the last page of this prospectus and the SAI is made part of this prospectus by reference. THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN ANY SUBACCOUNT THROUGH A TRUST OR FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED BY ANY BANK OR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. THE INVESTMENT PORTFOLIOS AND THE MANAGERS ARE LISTED ON THE NEXT PAGE. --------------------------------------------------------------------------- Landmark-###### The investment portfolios available under your Contract and the portfolio managers are:
A I M ADVISORS, INC. J.P. MORGAN FLEMING INVESTMENT MANAGEMENT, INC. AIM V.I. Dent Demographic Trends Fund (Class II) ING JPMorgan Small Cap Equity Portfolio (Class S) (1) A I M CAPITAL MANAGEMENT, INC. JANUS CAPITAL MANAGEMENT LLC ING AIM Mid Cap Growth Portfolio (Class S) (1) ING Janus Growth and Income Portfolio (Class S) (1) ALLIANCE CAPITAL MANAGEMENT L.P. ING Janus Special Equity Portfolio (Class S) (1) ING Alliance Mid Cap Growth Portfolio (Class S) (1) JENNISON ASSOCIATES LLC BARING INTERNATIONAL INVESTMENT LIMITED ING Jennison Equity Opportunities Portfolio (Class S) (1) ING Developing World Portfolio (Class S) (1) Jennison Portfolio (Class II) (5) ING Hard Assets Portfolio (Class S) (1) SP Jennison International Growth Portfolio (Class II) (5) CAPITAL GUARDIAN TRUST COMPANY JULIUS BAER INVESTMENT MANAGEMENT, INC. ING Capital Guardian Large Cap Value Portfolio (Class S)(1) ING Julius Baer Foreign Portfolio(1) ING Capital Guardian Managed Global Portfolio (Class S)(1) MARSICO CAPITAL MANAGEMENT, LLC ING Capital Guardian Small Cap Portfolio (Class S) (1) ING Marsico Growth Portfolio (Class S) (1) CAPITAL RESEARCH AND MANAGEMENT COMPANY MASSACHUSETTS FINANCIAL SERVICES COMPANY ING American Funds Growth Portfolio(2) ING MFS Mid Cap Growth Portfolio (Class S) (1) ING American Funds Growth-Income Portfolio(2) ING MFS Research Portfolio (Class S) (1) ING American Funds International Portfolio(2) ING MFS Total Return Portfolio (Class S) (1) COLUMBIA MANAGEMENT ADVISERS, INC. MERCURY ADVISORS Colonial Small Cap Value Fund (Class B) ING Mercury Focus Value Portfolio (Class S) (1) EAGLE ASSET MANAGEMENT, INC. ING Mercury Fundamental Growth Portfolio (Class S) (1) ING Eagle Asset Value Equity Portfolio (Class S) (1) PACIFIC INVESTMENT MANAGEMENT COMPANY LLC FIDELITY(R)MANAGEMENT & RESEARCH CO. ING PIMCO Core Bond Portfolio (Class S) (1) Fidelity(R)VIP Growth Portfolio (Class S2) PIMCO High Yield Portfolio Fidelity(R)VIP Equity-Income Portfolio (Class S2) PIONEER INVESTMENT MANAGEMENT, INC. ING FMRSM Diversified Mid Cap Portfolio (Class S) (1) Pioneer Fund VCT Portfolio (Class II) GOLDMAN SACHS ASSET MANAGEMENT, L.P. Pioneer Mid-Cap Value VCT Portfolio (Class II) ING Goldman Sachs Internet TollkeeperSM Portfolio PROFUND ADVISORS LLC (Class S) (1) (3) ProFund VP Bull ING INVESTMENT MANAGEMENT, LLC ProFund VP Europe 30 ING Limited Maturity Bond Portfolio (Class S) (1) ProFund VP Rising Rates Opportunity ING Liquid Assets Portfolio (Class S) (1) ProFund VP Small-Cap ING INVESTMENTS, LLC SALOMON BROTHERS ASSET MANAGEMENT, INC. ING International Portfolio (Class S) (1) ING Salomon Brothers All Cap Portfolio (Class S) (1) ING VP Bond Portfolio (Class S) ING Salomon Brothers Investors Portfolio (Class S) (1) ING VP Growth Opportunities Portfolio (Class S) ING Salomon Brothers Aggressive Growth Portfolio ING VP Index Plus LargeCap Portfolio (Class S) (Class S)(2) ING VP MagnaCap Portfolio (Class S) T. ROWE PRICE ASSOCIATES, INC. ING VP SmallCap Opportunities Portfolio (Class S) ING T. Rowe Price Equity Income Portfolio (Class S) (1) ING VP Worldwide Growth Portfolio (Class S) ING T. Rowe Price Capital Appreciation Portfolio INVESCO FUNDS GROUP, INC. (Class S) (1) INVESCO VIF-- Financial Services Fund UBS GLOBAL ASSET MANAGEMENT INVESCO VIF-- Health Sciences Fund ING UBS US Balanced Portfolio (Class S) (1) INVESCO VIF-- Leisure Fund VAN KAMPEN INVESCO VIF-- Utilities Fund ING Van Kampen Equity Growth Portfolio (Class S) (1) J.P. MORGAN FLEMING ASSET MANAGEMENT (LONDON) LLC. ING Van Kampen Global Franchise Portfolio (Class S) (1) ING JPMorgan Fleming International Portfolio (Class S)(4) ING Van Kampen Growth and Income Portfolio (Class S)(1) ING Van Kampen Real Estate Portfolio (Class S) (1)
(1) The investment adviser for this portfolio is Directed Services, Inc. The portfolio manager listed is the sub-adviser. Directed Services, Inc. is an affiliated Company of ING Groep, N.V. (2) The investment adviser for this portfolio is ING Investments, LLC. The portfolio manager listed is the sub-advisor. (3) Internet TollkeeperSM Series is a service mark of Goldman, Sachs & Co. (4) The investment adviser for this portfolio is ING Life Insurance and Annuity Company. The portfolio manager listed is the sub-adviser. (5) The investment adviser for this portfolio is Prudential Investments LLC. The portfolio manager listed is the sub-adviser. The above mutual fund investment portfolios are purchased and held by corresponding divisions of our Separate Account B. We refer to the divisions as "subaccounts" and the money you place in the Fixed Account's guaranteed interest periods as "Fixed Interest Allocations" in this prospectus. Landmark-###### - -------------------------------------------------------------------------------- TABLE OF CONTENTS - --------------------------------------------------------------------------------
PAGE PAGE Index of Special Terms.............................. 1 Death Benefit Choices............................... 34 Fees and Expenses................................... 2 Death Benefit During the Accumulation Phase....... 34 Condensed Financial Information..................... 5 Standard Death Benefit........................ 35 Accumulation Unit................................. 5 Enhanced Death Benefit Options................ 35 The Net Investment Factor......................... 5 Earnings Multiplier Benefit Rider............. 37 Performance Information........................... 6 Death Benefit During the Income Phase............... Financial Statements.............................. 6 Continuation After Death-- Spouse................. ING USA Annuity and Life Insurance Company.......... 7 Continuation After Death-- Not a Spouse........... ING USA Separate Account B.......................... 7 Required Distributions Upon Contract The Trusts and Funds................................ 7 Owner's Death................................. Covered Funds, Special Funds and Excluded The Annuity Options................................. 26 Funds ........................................... 9 Other Contract Provisions........................... Charges and Fees.................................... 9 Other Information................................... Charge Deduction Subaccount....................... 10 Federal Tax Considerations.......................... Charges Deducted from the Contract Value.......... 10 Statement of Additional Information Surrender Charge.............................. 10 Table of Contents................................. Waiver of Surrender Charge for Extended Appendix A Medical Care............................... 10 Condensed Financial Information................... A1 Free Withdrawal Amount........................ 10 Appendix B Surrender Charge for Excess Withdrawals....... 10 The Investment Portfolios......................... B1 Premium Taxes................................. 11 Appendix C Administrative Charge......................... 11 Fixed Account II.................................. C1 Transfer Charge............................... 11 Appendix D Charges Deducted from the Subaccounts............. 11 Fixed Interest Division........................... D1 Mortality and Expense Risk Charge............. 11 Appendix E Asset-Based Administrative Charge............. 11 Surrender Charge for Excess Withdrawals Earnings Multiplier Benefit Charge............ 11 Example....................................... E1 Optional Rider Charges........................ 12 Appendix F Trust and Fund Expenses........................... 12 Withdrawal Adjustment for 7% Solution The Annuity Contract................................ 13 Death Benefit Examples........................ F1 Contract Date and Contract Year .................. 13 Appendix G Contract Owner.................................... 13 Special Funds and Excluded Funds Examples......... G1 Annuity Start Date................................ 14 Appendix H Annuitant......................................... 14 Death Benefits for Yr-2001 Contract Owners........ H1 Beneficiary....................................... 14 Appendix I Purchase and Availability of the Contract......... 15 Death Benefits for May-2002 and Yr-2003 Crediting of Premium Payments..................... 16 Contract Owners............................... I1 Administrative Procedures......................... 17 Appendix J Contract Value.................................... 17 Optional Rider Benefits for Yr-2001 Cash Surrender Value.............................. 17 Contract Owners............................... J1 Addition, Deletion or Substitution of Appendix K Subaccounts and Other Changes................. 18 Optional Rider Benefit Charges and The Fixed Account................................. 18 Minimum Guaranteed Income Benefit Optional Riders..................................... for May-2002 Contract Owners.................. K1 Rider Date........................................ Appendix L No Cancellation................................... Optional Rider Benefit Charges for Termination....................................... Yr-2003 Contract Owners and Optional Minimum Guaranteed Income Benefit Rider........... Rider Benefits for May-2002 and Yr-2003 Minimum Guaranteed Withdrawal Contract Owners............................... L1 Benefit Rider................................. Other Contracts..................................... Withdrawals......................................... 28 Transfers Among Your Investments.................... 31
Landmark-###### i - -------------------------------------------------------------------------------- INDEX OF SPECIAL TERMS - -------------------------------------------------------------------------------- The following special terms are used throughout this prospectus. Refer to the page(s) listed for an explanation of each term: SPECIAL TERM PAGE ----------------------------------------------------- --------- Accumulation Unit 5 Annuitant 14 Annuity Start Date 14 Cash Surrender Value 17 Contract Date 13 Claim Date Contract Owner 13 Contract Value 17 Contract Year 13 Covered Fund 9 Earnings Multiplier Benefit 37 Excluded Fund 9 Free Withdrawal Amount 10 Max 7 Enhanced Death Benefit 37 Net Investment Factor 5 Net Rate of Return Quarterly Ratchet Enhanced Death Benefit 36 Restricted Fund 8 Rider Date 18 7% Solution Death Benefit Element 36 Special Fund 9 Standard Death Benefit 35 The following terms as used in this prospectus have the same or substituted meanings as the corresponding terms currently used in the Contract: TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT ------------------------------- --------------------------------------- Accumulation Unit Value Index of Investment Experience Annuity Start Date Annuity Commencement Date Contract Owner Owner or Certificate Owner Contract Value Accumulation Value Transfer Charge Excess Allocation Charge Fixed Interest Allocation Fixed Allocation Free Look Period Right to Examine Period Guaranteed Interest Period Guarantee Period Subaccount(s) Division(s) Net Investment Factor Experience Factor Regular Withdrawals Conventional Partial Withdrawals Withdrawals Partial Withdrawals Landmark-###### ii - -------------------------------------------------------------------------------- FEES AND EXPENSES - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract, or transfer contract value between investment options. State premium taxes may also be deducted. CONTRACT OWNER TRANSACTION EXPENSES 1 Surrender Charge: COMPLETE YEARS ELAPSED 0 1 2 3 4+ SINCE PREMIUM PAYMENT SURRENDER CHARGE 6% 5% 4% 3% 0% Transfer Charge 2................................ $25 per transfer, if you make more than 12 transfers in a contract year 1 If you invested in a Fixed Interest Allocation, a Market Value Adjustment may apply to certain transactions. This may increase or decrease your contract value and/or your transfer or surrender amount. 2 We currently do not impose this charge, but may do so in the future. The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Trust or Fund fees and expenses. ANNUAL CONTRACT ADMINISTRATIVE CHARGE 3................................... $30 (We waive this charge if the total of your premium payments is $100,000 or more or if your contract value at the end of a contract year is $100,000 or more.) 3 We deduct this charge on each contract anniversary and on surrender. SEPARATE ACCOUNT ANNUAL CHARGES 4 - -------------------------------------------------------------------------------- STANDARD ENHANCED DEATH BENEFITS DEATH QUARTERLY BENEFIT RATCHET MAX 7 - -------------------------------------------------------------------------------- Mortality & Expense Risk Charge 1.50% 1.75% 1.95% Asset-Based Administrative Charge 0.15% 0.15% 0.15% Total 1.65% 1.90% 2.10% - -------------------------------------------------------------------------------- 4 As a percentage of average daily assets in each subaccount. The Separate Account Annual Charges are deducted daily. EARNINGS MULTIPLIER BENEFIT RIDER CHARGE 5 - --------------------------------------------- ---------------------------------- As an Annual Charge As a Quarterly Charge - --------------------------------------------- ---------------------------------- 0.30% of contract value 0.075% of contract value - --------------------------------------------- ---------------------------------- 5 We deduct the rider charge from the subaccounts in which you are invested on each quarterly contract anniversary and pro-rata on termination of the Contract; if the value in the subaccounts is insufficient, the rider charge will be deducted from the Fixed Interest Allocation(s) nearest maturity, and the amount deducted may be subject to a Market Value Adjustment. Landmark-###### 1 OPTIONAL RIDER CHARGES 6 MINIMUM GUARANTEED INCOME BENEFIT RIDER: - ------------ ---------------------------------- -------------------------------- MGIB Rate As an Annual Charge As a Quarterly Charge - ------------ ---------------------------------- -------------------------------- 7% 0.75% of the MGIB Charge Base7 0.1875% of the MGIB Charge Base7 - ------------ ---------------------------------- -------------------------------- MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER: - -------------------------------- ----------------------------------------------- As an Annual Charge As a Quarterly Charge - -------------------------------- ----------------------------------------------- 0.35% of contract value 0.0875% of contract value - -------------------------------- ----------------------------------------------- 6 We deduct optional rider charges from the subaccounts in which you are invested on each quarterly contract anniversary and pro-rata on termination of the Contract; if the value in the subaccounts is insufficient, the optional rider charges will be deducted from the Fixed Interest Allocation(s) nearest maturity, and the amount deducted may be subject to a Market Value Adjustment. 7 The MGIB Charge Base generally depends on the amount of premiums you pay during the first five contract years after you purchase the rider, when you pay the premiums, less a pro-rata deduction for any withdrawal made while the MGIB rider is in effect and accumulated at the MGIB Rate. The MGIB Charge Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers between Covered, Special and Excluded Funds may reduce the applicable MGIB Charge Base by more than the amount withdrawn or transferred. TRUST OR FUND EXPENSES The next item shows the minimum and maximum total operating expenses charged by the Trust or Fund that you may pay periodically during the time that you own the Contract. More detail concerning each Trust or Fund's fees and expenses is contained in the prospectus for each Trust or Fund.
- ---------------------------------------------------------------------------- ------------------ ----------------- TOTAL ANNUAL TRUST OR FUND OPERATING EXPENSES 8 MINIMUM MAXIMUM - ---------------------------------------------------------------------------- ------------------ ----------------- - ---------------------------------------------------------------------------- ------------------ ----------------- (expenses that are deducted from Trust or Fund assets, including management fees, distribution and/or service (12b-1) fees9, and other 0.53% 2.13% expenses): - ---------------------------------------------------------------------------- ------------------ -----------------
8 The minimum and maximum total operating expenses charged by a Trust or Fund including applicable expense reimbursement or fee waiver arrangements would be 0.53% to 1.98%. The expense reimbursement or fee arrangement reflected is expected to continue through December 31, 2003. 9 The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in the Fund or Trust prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. The following table shows the annual operating expenses separately for each Trust or Fund. Landmark-###### 2 FUND EXPENSE TABLE1 The column labeled "Gross Expense Ratio" shows the total annual operating expenses charged by a Trust or Fund, absent expense reimbursement or fee waiver arrangements. The column labeled "Net Expense Ratio" shows such total annual operating expenses after applicable expense reimbursement or fee waiver arrangements where such reimbursement or waiver is expected to continue through December 31, 2003.
FUND NAME INVESTMENT DISTRIBUTION OTHER TOTAL FUND TOTAL NET FUND ANNUAL ANNUAL AND/OR EXPENSES EXPENSES SERVICE WITHOUT WAIVERS AFTER ADVISORY (12B-1) WAIVERS OR OR WAIVERS OR FEES FEE EXPENSES REDUCTIONS REDUCTIONS REDUCTIONS - ------------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trends Fund (Series II) 5 0.85% 0.25% 0.58% 1.68% 0.23% 1.45% Colonial Small Cap Value Fund (Class B) 0.80% 0.25% 0.34% 1.39% 0.29% 1.10% Fidelity(R)VIP Equity-Income Portfolio (Service Class 2) 0.48% 0.25% 0.10% 0.83% 0.00% 0.83% Fidelity(R)VIP Growth Portfolio (Service Class 2) 0.58% 0.25% 0.10% 0.93% 0.00% 0.93% ING AIM Mid-Cap Growth Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Alliance Mid-Cap Growth Portfolio (Service Class) 0.78% 0.25% 0.02% 1.05% 0.00% 1.05% ING American Funds Growth Portfolio 2 0.38% 0.75% 0.05% 1.18% 0.00% 1.18% ING American Funds Growth-Income Portfolio 2 0.34% 0.75% 0.04% 1.13% 0.00% 1.13% ING American Funds International Portfolio 2 0.57% 0.75% 0.09% 1.41% 0.00% 1.41% ING Capital Guardian Large Cap Value Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Capital Guardian Managed Global Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Capital Guardian Small Cap Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Developing World Portfolio (Service Class) 1.50% 0.25% 0.01% 1.76% 0.00% 1.76% ING Eagle Asset Value Equity Portfolio (Service Class) 3 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING FMRSM Diversified Mid-Cap Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Goldman Sachs Internet TollkeeperSM Portfolio (Service Class) 1.60% 0.25% 0.01% 1.86% 0.00% 1.86% ING Hard Assets Portfolio (Service Class) 0.69% 0.25% 0.01% 0.94% 0.00% 0.94% ING International Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Janus Growth and Income Portfolio (Service Class) 3 0.85% 0.25% 0.01% 1.11% 0.00% 1.11% ING Janus Special Equity Portfolio (Service Class) 0.85% 0.25% 0.01% 1.11% 0.00% 1.11% ING Jennison Equity Opportunities Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING JPMorgan Fleming International Portfolio (Service Class) 0.80% 0.25% 0.20% 1.25% 0.00% 1.25% ING JPMorgan Small Cap Equity Portfolio (Service Class) 3 0.90% 0.25% 0.01% 1.16% 0.00% 1.16% ING Julius Baer Foreign Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Limited Maturity Bond Portfolio (Service Class) 0.27% 0.25% 0.01% 0.53% 0.00% 0.53% ING Liquid Assets Portfolio (Service Class) 0.27% 0.25% 0.01% 0.53% 0.00% 0.53% ING Marsico Growth Portfolio (Service Class) 0.78% 0.25% 0.01% 1.04% 0.00% 1.04% ING Mercury Focus Value Portfolio (Service Class) 0.80% 0.25% 0.01% 1.06% 0.00% 1.06% ING Mercury Fundamental Growth Portfolio (Service Class) 0.80% 0.25% 0.01% 1.06% 0.00% 1.06% ING MFS Mid-Cap Growth Portfolio (Service Class) 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING MFS Research Portfolio (Service Class) 3 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING MFS Total Return Portfolio (Service Class) 3 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING PIMCO Core Bond Portfolio (Service Class) 0.66% 0.25% 0.02% 0.93% 0.00% 0.93% ING Salomon Brothers Aggressive Growth Portfolio (Service Class) 0.69% 0.25% 0.13% 1.07% 0.00% 1.07% ING Salomon Brothers All Cap Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Salomon Brothers Investors Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING T. Rowe Price Capital Appreciation Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING T. Rowe Price Equity Income Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING UBS U.S. Balanced Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Van Kampen Equity Growth Portfolio (Service Class) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01%
Landmark-###### 3
ING Van Kampen Global Franchise Portfolio (Service Class) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Van Kampen Growth and Income Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Van Kampen Real Estate Portfolio (Service Class) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING VP Bond Portfolio (Class S) 0.40% 0.25% 0.09% 0.74% 0.00% 0.74% ING VP Growth Opportunities Portfolio (Service Class) 0.75% 0.25% 0.58% 1.58% 0.48% 1.10% ING VP Index Plus LargeCap Portfolio (Class S) 0.35% 0.25% 0.11% 0.71% 0.00% 0.71% ING VP MagnaCap Portfolio (Service Class) 0.75% 0.25% 0.45% 1.45% 0.35% 1.10% ING VP SmallCap Opportunities Portfolio (Service Class) 0.75% 0.25% 0.49% 1.49% 0.39% 1.10% ING VP Worldwide Growth Portfolio 4 1.00% 0.25% 0.82% 2.07% 0.84% 1.23% INVESCO VIF-- Financial Services Fund 0.75% 0.00% 0.34% 1.09% 0.00% 1.09% INVESCO VIF-- Health Sciences Fund 0.75% 0.00% 0.32% 1.07% 0.00% 1.07% INVESCO VIF-- Leisure Fund 0.75% 0.00% 3.21% 3.96% 0.00% 3.96% INVESCO VIF-- Utilities Fund 0.60% 0.00% 0.58% 1.18% 0.00% 1.18% Jennison Portfolio (Class II) 0.60% 0.25% 0.16% 1.01% 0.00% 1.01% PIMCO High Yield Portfolio (Admin Class)6 0.25% 0.15% 0.36% 0.76% 0.01% 0.75% PIMCO StocksPlus Growth and Income Portfolio (Admin Class) 0.40% 0.15% 0.11% 0.66% 0.00% 0.65% Pioneer Fund VCT Portfolio (Class II) 0.65% 0.25% 0.16% 1.06% 0.00% 1.06% Pioneer Mid Cap Value VCT Portfolio (Class II) 0.65% 0.25% 0.17% 1.07% 0.00% 1.07% ProFund VP Bull 0.75% 0.25% 0.91% 1.91% 0.00% 1.91% ProFund VP Europe 30 8 0.75% 0.25% 1.03% 2.03% 0.05% 1.98% ProFund Rising Rates Opportunity 8 0.75% 0.25% 1.13% 2.13% 0.15% 1.98% ProFund VP Small-Cap 0.75% 0.25% 0.97% 1.97% 0.00% 1.97% SP Jennison International Growth Portfolio (Class II) 0.85% 0.25% 0.70% 1.80% 0.00% 1.80%
Footnotes to the "Fund Expense Table" 1 The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in this Fund Expense Table and the fund prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. See "Fees - Fund Expenses" for additional information. 2 Because these portfolios are new, "Other Expenses", shown above, are estimated for the current fiscal year. This table reflects the aggregate annual operating expenses of each portfolio and its corresponding master fund. 3 A portion of the brokerage commissions that these portfolios pay is used to reduce each portfolio's expenses. Including these reductions, the "Total Fund Annual Expenses After Waivers or Reductions" for each portfolio for the year ended December 31, 2002 would have been 0.94% for Eagle Asset Value Equity, 1.08% for Janus Growth and Income, 1.13% for JPMorgan Fleming Small Cap Equity, 0.84% for MFS Research, 0.89% for MFS Total Return and 1.01% for Salomon Brothers All Cap. This arrangement may be discontinued at any time. DSI has voluntarily agreed to waive a portion of its management fee for the MFS Research and MFS Total Return portfolios. Including these waivers, the "Total Fund Annual Expenses After Waivers or Reductions" for each portfolio for the year ended December 31, 2002 would have been 0.90%. This arrangement may be discontinued by DSI at any time. 4 ING Investments, LLC has entered into written expense limitation agreements with each Portfolio under which it will limit expenses of the Portfolio, excluding interest, taxes, brokerage and extraordinary expenses subject to possible reimbursement to ING Investments, LLC within three years. The amount of each Portfolio's expenses waived or reimbursed during the last fiscal Landmark-###### 4 year by ING Investments, LLC is shown under the heading "Total Waivers or Reductions" in the table above. The expense limit will continue through at least December 31, 2003. The expense limit is contractual and shall renew automatically for one-year terms unless the adviser provides written notice of the termination of the expense limitation agreement within 90 days of the end of the then-current term. 5 The Fund's advisor has contractually agreed to waive advisory fees or reimburse expenses of Series I or Series II shares to the extent necessary to limit total annual fund operating expenses (excluding Rule 12b-1 Plan fees, if any, interest, taxes, dividend expense on short sales, extraordinary items and increases in expenses due to expense offset arrangements, if any) to 1.30%. Further, the fund's distributor has agreed to reimburse Rule 12b-1 Plan fees to the extent necessary to limit Series II total annual fund operating expenses to 1.45%. 6 "Other Expenses" reflects an administrative fee of 0.35%, and the class's pro rata Trustees' fees. PIMCO has contractually agreed to reduce total annual portfolio operating expenses to the extent they would exceed, due to the payment of Trustees' fees, 0.75% of average daily net assets. Under the Expense Limitation Agreement, PIMCO may recoup these waivers and reimbursements in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. 7 The expenses in the table above reflect the expense limitation in effect through December 31, 2003 under which Pioneer has agreed not to impose all or a portion of its management fee and if necessary, to limit other ordinary operating expenses to the extent required to reduce Class I expenses to 1.25% of the average daily net assets attributable to Class I shares; the portion of the portfolio expenses attributable to Class II shares will be reduced only to the extent such expenses are reduced for Class I shares. Pioneer may subsequently recover reimbursed expenses (within three years of being incurred) from the portfolio if the expense ratio of the Class I shares is less than the expense limitation of the Class I shares. Each class will reimburse Pioneer no more than the amount by which that class' expenses were reduced. 8 ProFund Advisors has contractually agreed to waive Investment Advisory and Management Services fees and to reimburse other expenses to the extent total annual operating expenses, as a percentage of average daily net assets, exceed 1.98% through December 31, 2003. After such date, the expense limitation may be terminated or revised. Amounts waived or reimbursed in a particular fiscal year may be recouped by Profund Advisors within three years of the waiver or reimbursement to the extent that recoupment will not cause the ProFund VP's expenses to exceed any expense limitation in place at that time. A waiver or reimbursement lowers the expense ratio and increases overall returns to investors. Premium taxes (which currently range from 0% to 3.5% of premium payments) may apply, but are not reflected in the above table or in the example below. EXAMPLE: This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annul expenses, and Trust or Fund fees and expenses. The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the maximum fees and expenses of any of the Trusts or Funds. Specifically, the Example assumes election of the Max 7 Enhanced Death Benefit and election of the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. The Example reflects the deduction of a mortality and expense risk charge, an asset-based administrative charge, and the annual contract administrative charge as an annual charge of 0.04% of assets. The Example also assumes you elected an optional benefit rider with the highest cost, an assumed charge of 1.14% annually, where the rider base is equal to the initial premium and increases by 7% annually, and the rider charge is assessed each quarter on a base equal to the hypothetical $10,000 premium increasing at 7% per year. The assumed annual rider charge of 1.14% results from the assumption of a 7% annual increase in the rider base but only a 5% earnings increase in the contract value before expenses. Thus, 1.14% represents an annual charge over the 10-year period which is equivalent to a charge of 0.1875% of rider base per quarter over the same period. Note that surrender charges may apply if you choose to annuitize your Contract within the first 4 contract years. Landmark-###### 5 The Example reflects the maximum charges for February-2004 contract owners. If you elect different options or are not a February-2004 contract owner, your expenses will be lower. The example also takes into account contractual limitations on Trust or Fund expenses that require reimbursement or waiver of expenses, but only for the period of the contractual limitation. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: - -------------------------------------------------------------------------------- 1) If you surrender your contract at the end of the applicable time period: - -------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years $1,153 $2,079 $2,779 $5,470 2) If you annuitize at the end of the applicable time period: 1 year 3 years 5 years 10 years $1,153 $2,079 $2,779 $5,470 3) If you do not surrender your contract: 1 year 3 years 5 years 10 years $553 $1,679 $2,779 $5,470 - ------ --------------------- -------------------- -------------------- --------- Compensation is paid for the sale of the Contracts. For information about this compensation, see "Selling the Contract." - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- ACCUMULATION UNIT We use accumulation units to calculate the value of a Contract. Each subaccount of Separate Account B has its own accumulation unit value. The accumulation units are valued each business day that the New York Stock Exchange is open for trading. Their values may increase or decrease from day to day according to a Net Investment Factor, which is primarily based on the investment performance of the applicable investment portfolio. Shares in the investment portfolios are valued at their net asset value. Tables containing (i) the accumulation unit value history of each subaccount of ING USA Separate Account B offered in this prospectus and (ii) the total investment value history of each such subaccount are presented in Appendix A -- Condensed Financial Information. The numbers show the year-end unit values of each subaccount from the time purchase payments were first received in the subaccounts under the Contract. THE NET INVESTMENT FACTOR The Net Investment Factor is an index number which reflects certain charges under the Contract and the investment performance of the subaccount. The Net Investment Factor is calculated for each subaccount as follows: 1) We take the net asset value of the subaccount at the end of each business day. 2) We add to (1) the amount of any dividend or capital gains distribution declared for the subaccount and reinvested in such subaccount. We subtract from that amount a charge for our taxes, if any. 3) We divide (2) by the net asset value of the subaccount at the end of the preceding business day. Landmark-###### 6 4) We then subtract the applicable daily mortality and expense risk charge and the daily asset-based administrative charge from the subaccount. Calculations for the subaccounts are made on a per share basis. The Net Rate of Return equals the Net Investment Factor minus one. PERFORMANCE INFORMATION From time to time, we may advertise or include in reports to contract owners performance information for the subaccounts of Separate Account B, including the average annual total return performance, yields and other nonstandard measures of performance. Such performance data will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Except for the Liquid Assets subaccount, quotations of yield for the subaccounts will be based on all investment income per unit (contract value divided by the accumulation unit) earned during a given 30-day period, less expenses accrued during such period. Information on standard total average annual return performance will include average annual rates of total return for 1, 5 and 10 year periods, or lesser periods depending on how long Separate Account B has been investing in the portfolio. We may show other total returns for periods of less than one year. We will base total return figures on the actual historic performance of the subaccounts of Separate Account B, assuming an investment at the beginning of the period when the separate account first invested in the portfolios, and withdrawal of the investment at the end of the period, adjusted to reflect the deduction of all applicable portfolio and current contract charges. We may also show rates of total return on amounts invested at the beginning of the period with no withdrawal at the end of the period. Total return figures which assume no withdrawals at the end of the period will reflect all recurring charges, but will not reflect the surrender charge. In addition, we may present historic performance data for the investment portfolios since their inception reduced by some or all of the fees and charges under the Contract. Such adjusted historic performance includes data that precedes the inception dates of the subaccounts of Separate Account B. This data is designed to show the performance that would have resulted if the Contract had been in existence before the separate account began investing in the portfolios. Current yield for the Liquid Assets subaccount is based on income received by a hypothetical investment over a given 7-day period, less expenses accrued, and then "annualized" (i.e., assuming that the 7-day yield would be received for 52 weeks). We calculate "effective yield" for the Liquid Assets subaccount in a manner similar to that used to calculate yield, but when annualized, the income earned by the investment is assumed to be reinvested. The "effective yield" will thus be slightly higher than the "yield" because of the compounding effect of earnings. We calculate quotations of yield for the remaining subaccounts on all investment income per accumulation unit earned during a given 30-day period, after subtracting fees and expenses accrued during the period, assuming no surrender. YOU SHOULD BE AWARE THAT THERE IS NO GUARANTEE THAT THE LIQUID ASSETS SUBACCOUNT WILL HAVE A POSITIVE OR LEVEL RETURN. We may compare performance information for a subaccount to: (i) the Standard & Poor's 500 Stock Index, Dow Jones Industrial Average, Donoghue Money Market Institutional Averages, or any other applicable market indices, (ii) other variable annuity separate accounts or other investment products tracked by Lipper Analytical Services (a widely used independent research firm which ranks mutual funds and other investment companies), or any other rating service, and (iii) the Consumer Price Index (measure for inflation) to determine the real rate of return of an investment in the Contract. Our reports and promotional literature may also contain other information including the ranking of any subaccount based on rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by similar rating services. Performance information reflects only the performance of a hypothetical contract and should be considered in light of other factors, including the investment objective of the investment portfolio and market conditions. Please keep in mind that past performance is not a guarantee of future results. Landmark-###### 7 FINANCIAL STATEMENTS The statement of assets and liabilities of Separate Account B for the quarter ended September 30, 2003, and as of December 31, 2002, and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended are included in the Statement of Additional Information. The consolidated financial statements and schedules of Golden American for the quarter ended September 30, 2003, and as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002 are included in the Statement of Additional Information. - -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY - -------------------------------------------------------------------------------- ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings, Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in the Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. Golden American's consolidated financial statements appear in the Statement of Additional Information. Lion Connecticut is the holding company for Directed Services, Inc., the investment manager of the ING Investors Trust and the distributor of the Contracts, and other interests. ING also owns ING Investments, LLC and ING Investment Management, LLC, portfolio managers of the ING Investors Trust, and the investment managers of the ING Variable Insurance Trust and ING Variable Products Trust and ING Variable Product Portfolios, respectively. ING also owns Baring International Investment Limited, another portfolio manager of the ING Investors Trust. Our principal office is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380. - -------------------------------------------------------------------------------- ING USA SEPARATE ACCOUNT B - -------------------------------------------------------------------------------- ING USA Separate Account B ("Separate Account B") was established as a separate account of the Company on July 14, 1988. It is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 as amended (the "1940 Act"). Separate Account B is a separate investment account used for our variable annuity contracts. We own all the assets in Separate Account B but such assets are kept separate from our other accounts. Separate Account B is divided into subaccounts. Each subaccount invests exclusively in shares of one investment portfolio of a Trust or Fund. Each investment portfolio has its own distinct investment objectives and policies. Income, gains and losses, realized or unrealized, of a portfolio are credited to or charged against the corresponding subaccount of Separate Account B without regard to any other income, gains or losses of the Company. Assets equal to the reserves and other contract liabilities with respect to each are not chargeable with liabilities arising out of any other business of the Company. They may, however, be subject to liabilities arising from subaccounts whose assets we attribute to other variable annuity contracts supported by Separate Account B. If the assets in Separate Account B exceed the required reserves and other liabilities, we may transfer the excess to our general account. We are obligated to pay all benefits and make all payments provided under the Contracts. Note: We currently offer other variable annuity contracts that invest in Separate Account B, but are not discussed in this prospectus. Separate Account B may also invest in other investment portfolios which are not available under your Contract. Under certain circumstances, we may make certain changes to the subaccounts. For more Landmark-###### 8 information, see "The Annuity Contract -- Addition, Deletion, or Substitution of Subaccounts and Other Changes." - -------------------------------------------------------------------------------- THE TRUSTS AND FUNDS - -------------------------------------------------------------------------------- Investment portfolios of the following Trusts and Funds are currently available under your Contract. AIM Variable Insurance Funds is also a mutual fund whose shares are available to separate accounts of life insurance companies, including ING USA. The address of AIM Variable Insurance Funds is 11 Greenway Plaza, Suite 100, Houston, TX 77046-1173. Fidelity Variable Insurance Products Fund is also a mutual fund which offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products. Fidelity Variable Insurance Products Fund and Fidelity Variable Insurance Products Fund II is located at 82 Devonshire Street, Boston, MA 02109. The ING Investors Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity and variable life insurance policies offered by ING USA and other affiliated insurance companies. The ING Investors Trust may also sell its shares to separate accounts of insurance companies not affiliated with ING USA and to certain qualified pension and retirement plans. The address of the ING Investors Trust is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. ING Partners, Inc. is a mutual fund whose shares are offered only to insurance companies to fund benefits under their variable annuity and variable life insurance contracts. The address of Portfolio Partners, Inc. is 151 Farmington Avenue, Hartford, Connecticut 06156-8962. ING Variable Insurance Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ING Variable Insurance Trust is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. ING Variable Portfolios, Inc. is also a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ING Variable Portfolios, Inc. is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. ING Variable Products Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ING Variable Products Trust is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. INVESCO Variable Investment Funds, Inc. is a mutual fund whose shares are available to separate accounts of life insurance companies, including ING USA. The address of the INVESCO Variable Investment Funds, Inc. is 7800 East Union Avenue, Denver, CO 80237. The Liberty Variable Insurance Trust is a mutual fund whose shares are available only to separate accounts funding variable annuity and variable life insurance contracts offered by ING USA and other participating insurance companies. The address of Liberty Variable Insurance Trust is 600 Atlantic Avenue, Boston, MA 02210. The PIMCO Variable Insurance Trust is a mutual fund whose shares are available to separate accounts of insurance companies, including ING USA, for both variable annuity contracts and variable life insurance policies and to qualified pension and retirement plans. The address of the PIMCO Variable Insurance Trust is 840 Newport Center Drive, Suite 300, Newport Beach, CA 92660. Landmark-###### 9 The Pioneer Variable Contracts Trust is a mutual fund whose shares are available to separate accounts of life insurance companies, including ING USA. The address of Pioneer Variable Contracts Trust is 60 State Street, Boston, MA 02109. The ProFunds is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ProFunds is 3435 Stelzer Road, Suite 1000, PO Box 182100, Columbus, OH 43218-2000. The Prudential Series Fund, Inc. is a mutual fund whose shares are available to separate accounts funding variable annuity and variable life insurance polices offered by The Prudential Insurance Company of America, its affiliated insurers and other life insurance companies not affiliated with Prudential, including ING USA. The address of the Prudential Series Fund is 751 Broad Street, Newark, NJ 07102. YOU WILL FIND MORE DETAILED INFORMATION ABOUT THE TRUSTS AND FUNDS IN APPENDIX B - -- THE INVESTMENT PORTFOLIOS. A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION ON EACH TRUST OR FUND MAY BE OBTAINED BY CALLING OUR CUSTOMER SERVICE CENTER AT 800-366-0066. YOU SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. If, due to differences in tax treatment or other considerations, the interests of contract owners of various contracts participating in the Trusts or Funds conflict, we, the Boards of Trustees or Directors of the Trusts or Funds, and any other insurance companies participating in the Trusts or Funds will monitor events to identify and resolve any material conflicts that may arise. RESTRICTED FUNDS We may, with 30 days notice to you, designate any investment option as a Restricted Fund and limit the amount you may allocate or transfer to a Restricted Fund. We may also change the limitations on existing contracts with respect to new premiums added to investment portfolios and with respect to new transfers to investment portfolios. We may establish any limitations, at our discretion, as a percentage of premium or contract value, or as a specified dollar amount, and change the limitation at any time. Currently, we have not designated any investment option as a Restricted Fund. If we designate an investment option as a Restricted Fund or set applicable limitations, such change will apply only to transactions made after the designation. We limit your investment in the Restricted Funds on an aggregate basis for all Restricted Funds and for each individual Restricted Fund. Currently, we limit an investment in Restricted Funds to the following limitations: no more than $999,999,999, and no more than 30 percent of contract value. We may change these limits, in our discretion, for new contracts, premiums, transfers or withdrawals. We monitor the aggregate and individual limits on investments in Restricted Funds for each transaction (e.g. premium payments, reallocations, withdrawals, dollar cost averaging). If the contract value in the Restricted Funds has increased beyond the applicable limit due to market growth, we will not require the reallocation or withdrawal of contract value from the Restricted Funds. However, if the contract value in the Restricted Funds exceed the aggregate limit, if you take a withdrawal, it must come from either the Restricted Funds or pro-rata from all investment options in which contract value is allocated, so that the percentage of contract value in the Restricted Funds following the withdrawal is less than or equal to the percentage of contract value in the Restricted Funds prior to the withdrawal. We will not permit a transfer to the Restricted Funds if it would increase the contract value in the Restricted Fund or in all Restricted Funds to more than the applicable limits set forth above. We will not limit transfers from Restricted Funds. If the multiple reallocations lower the percentage of total contract value in Restricted Funds, we will permit the reallocation even if the percentage of contract value in a Restricted Fund is greater than its limit. Please see "Withdrawals" and "Transfers Among Your Investments" in this prospectus for more information on the effect of Restricted Funds. Landmark-###### 10 - -------------------------------------------------------------------------------- COVERED FUNDS, SPECIAL FUNDS AND EXCLUDED FUNDS - -------------------------------------------------------------------------------- For purposes of determining death benefits and benefits under the optional benefit riders (but not the earnings multiplier benefit rider), we assign the investment options to one of three categories of funds. The categories are: 1) Covered Funds; 2) Special Funds; and 3) Excluded Funds. Allocations to Covered Funds participate fully in all guaranteed benefits. Allocations to Special Funds could affect the death benefit and/or optional benefit rider guarantee that may otherwise be provided. Allocations to Excluded Funds do not participate in any guaranteed benefits, due to their potential for volatility. No investment options are currently designated as Excluded Funds. Designation of investment options under these categories may vary by benefit. For example, we may designate an investment option a Special Fund for purposes of calculating a benefit under an optional benefit rider, but not a death benefit, or for calculating one death benefit and not another. We may, with 30 days notice to you, designate any investment option as a Special or Excluded Fund with respect to new premiums added to such investment option and also with respect to new transfers to such investment option. Please see Appendix G for examples. - -------------------------------------------------------------------------------- CHARGES AND FEES - -------------------------------------------------------------------------------- We deduct the contract charges described below to compensate us for our costs and expenses, services provided and risks assumed under the Contracts. We incur certain costs and expenses for distributing and administering the Contracts, including compensation and expenses paid in connection with sales of the Contracts, for paying the benefits payable under the Contracts and for bearing various risks associated with the Contracts. The amount of a contract charge will not always correspond to the actual costs associated with the charge. For example, the surrender charge collected may not fully cover all of the distribution expenses incurred by us with the service or benefits provided. If there are any profits from fees and charges deducted under the Contract, including the mortality and expense risk charge and rider and benefit charges, we may use such profits to finance the distribution of Contracts. CHARGE DEDUCTION SUBACCOUNT You may elect to have all charges against your contract value deducted directly from a single subaccount designated by the Company. Currently we use the Liquid Assets subaccount for this purpose. If you do not elect this option, or if the amount of the charges is greater than the amount in the designated subaccount, we will deduct the charges as discussed below. You may cancel this option at any time by sending satisfactory notice to our Customer Service Center. CHARGES DEDUCTED FROM THE CONTRACT VALUE We deduct the following charges from your contract value: SURRENDER CHARGE. We will deduct a contingent deferred sales charge (a "surrender charge") if you surrender your Contract or if you take a withdrawal in excess of the Free Withdrawal Amount during the 4-year period from the date we receive and accept a premium payment. We base the surrender charge on a percentage of each premium payment withdrawn. The surrender charge is based on the amount requested for withdrawal. The surrender charge is deducted from the contract value remaining after you Landmark-###### 11 have received the amount requested for withdrawal. This charge is intended to cover sales expenses that we have incurred. We may reduce or waive the surrender charge in certain situations. We will never charge more than the maximum surrender charges. The percentage of premium payments deducted at the time of surrender or excess withdrawal depends on the number of complete years that have elapsed since that premium payment was made. We determine the surrender charge as a percentage of each premium payment as follows: COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4+ SINCE PREMIUM PAYMENT | | | | | | | | SURRENDER CHARGE 6% | 5% | 4% | 3% | 0% WAIVER OF SURRENDER CHARGE FOR EXTENDED MEDICAL CARE. We will waive the surrender charge in most states in the following events: (i) you begin receiving qualified extended medical care on or after the first contract anniversary for at least 45 days during a 60-day period and we receive your request for the surrender or withdrawal, together with all required documentation at our Customer Service Center during the term of your care or within 90 days after the last day of your care; or (ii) you are first diagnosed by a qualified medical professional, on or after the first contract anniversary, as having a qualifying terminal illness. We have the right to require an examination by a physician of our choice. If we require such an examination, we will pay for it. You are required to send us satisfactory written proof of illness. See your Contract for more information. The waiver of surrender charge may not be available in all states. FREE WITHDRAWAL AMOUNT. The Free Withdrawal Amount is the greater of (i) any earnings less previous withdrawals, and (ii) 10% of premium payments paid within 4 years prior to the date of withdrawal and not previously withdrawn, less any previous withdrawals taken in the same contract year. SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a surrender charge for excess withdrawals, which may include a withdrawal you make to satisfy required minimum distribution requirements under the Internal Revenue Code (the "Code"). We consider a withdrawal to be an excess withdrawal when the amount you withdraw in any contract year exceeds the Free Withdrawal Amount. When you are receiving systematic withdrawals, any combination of regular withdrawals taken and any systematic withdrawals expected to be received in a contract year will be included in determining the amount of the excess withdrawal. Such a withdrawal will be considered a partial surrender of the Contract and we will impose a surrender charge and any associated premium tax. We will deduct such charges from the contract value in proportion to the contract value in each subaccount or Fixed Interest Allocation from which the excess withdrawal was taken. In instances where the excess withdrawal equals the entire contract value in such subaccounts or Fixed Interest Allocations, we will deduct charges proportionately from all other subaccounts and Fixed Interest Allocations in which you are invested. ANY WITHDRAWAL FROM A FIXED INTEREST ALLOCATION MORE THAN 30 DAYS BEFORE ITS MATURITY DATE WILL TRIGGER A MARKET VALUE ADJUSTMENT. See Appendix C and the Fixed Account II prospectus for more information. For the purpose of calculating the surrender charge for an excess withdrawal: (i) we treat premiums as being withdrawn on a first-in, first-out basis; and (ii) amounts withdrawn which are not considered an excess withdrawal are not considered a withdrawal of any premium payments. We have included an example of how this works in Appendix E. Although we treat premium payments as being withdrawn before earnings for purpose of calculating the surrender charge for excess withdrawals, the federal tax law treats earnings as withdrawn first. PREMIUM TAXES. We may charge for state and local premium taxes depending on your state of residence. These taxes can range from 0% to 3.5% of the premium payment. We have the right to change this amount to conform with changes in the law or if you change your state of residence. We deduct the premium tax from your contract value or from the MGIB Base, if exercised, on the annuity start date. However, some jurisdictions impose a premium tax at the time initial and additional Landmark-###### 12 premiums are paid, regardless of when the annuity payments begin. In those states we may defer collection of the premium taxes from your contract value and deduct it when you surrender the Contract, when you take an excess withdrawal or on the annuity start date. ADMINISTRATIVE CHARGE. We deduct an annual administrative charge on each contract anniversary. If you surrender your Contract prior to a contract anniversary, we deduct an administrative charge when we determine the cash surrender value payable to you. The charge is $30 per Contract. We waive this charge if your contract value is $100,000 or more at the end of a contract year or the total of your premium payments is $100,000 or more or under other under conditions established by ING USA. We deduct the charge proportionately from all subaccounts in which you are invested. If there is no contract value in those subaccounts, we will deduct the charge from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until the charge has been paid. TRANSFER CHARGE. We currently do not deduct any charges for transfers made during a contract year. We have the right, however, to assess up to $25 for each transfer after the twelfth transfer in a contract year. The charge will not apply to any transfers due to the election of dollar cost averaging or automatic rebalancing. CHARGES DEDUCTED FROM THE SUBACCOUNTS MORTALITY AND EXPENSE RISK CHARGE. The amount of the mortality and expense risk charge depends on the death benefit you have elected. We deduct the charge each business day based on the assets you have in each subaccount. If there are any profits from the mortality and expense risk charge, we may use such profits to finance the distribution of Contracts. - ----------------------------- ----------------------------- -------------------- QUARTERLY RATCHET MAX 7 STANDARD ENHANCED ENHANCED DEATH BENEFIT DEATH BENEFIT DEATH BENEFIT - --------------- ------------- -------------- -------------- ------------- ------ Annual Annual Annual Charge Charge Charge Expressed Expressed as Expressed as Annual Charge as Daily Annual Charge Daily Rate Annual Daily Rate Rate Charge 1.50% 0.004141% 1.75% 0.004837% 1.95% 0.005395% - --------------- ------------- -------------- -------------- ---------- --------- See "The Annuity Contract -- Contract Owner Categories." PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. ASSET-BASED ADMINISTRATIVE CHARGE. The amount of the asset-based administrative charge, on an annual basis, is equal to 0.15% of the assets you have in each subaccount. We deduct the charge from your assets in each subaccount on each business day at the rate of 0.000411% for each day since the previous business day. EARNINGS MULTIPLIER BENEFIT CHARGE. Subject to state availability, you may purchase the earnings multiplier benefit rider for a non-qualified Contract either at issue or on the next contract anniversary following the introduction of the benefit in your state, if later. So long as the rider is in effect, we will deduct a separate quarterly charge for the rider through a pro-rata reduction of the contract value of the subaccounts in which you are invested. If there is insufficient contract value in the subaccounts, we will deduct the charges from your Fixed Interest Allocations starting with the allocation nearest its maturity date. If that is insufficient, we will deduct the charge from the allocation next nearest its maturity date, and so on. We deduct the rider charge on each quarterly contract anniversary in arrears, meaning we deduct the first charge on the first quarterly anniversary following the rider date. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current contract value immediately prior to the surrender or annuitization. The quarterly charge for Landmark-###### 13 the earnings multiplier benefit rider is 0.075% (0.30% annually). For a description of the rider, see "Earnings Multiplier Benefit Rider." OPTIONAL RIDER CHARGES. Subject to state availability, you may purchase one of two optional benefit riders that you may elect at issue. So long as the rider is in effect, we will deduct a separate quarterly charge for each optional benefit rider through a pro-rata reduction of the contract value of the subaccounts in which you are invested. If there is insufficient contract value in the subaccount, we will deduct the charges from your Fixed Interest Allocations nearest their maturity date. We deduct each rider charge on each quarterly contract anniversary in arrears, meaning we deduct the first charge on the first quarterly anniversary following the rider date. For a description of the riders and the defined terms used in connection with the riders, see "The Annuity Contract -- Optional Riders." MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The charge for the MGIB rider is as follows: - --------------- -------------------------------- ------------------------------ MGIB Rate As an Annual Charge As a Quarterly Charge - --------------- -------------------------------- ------------------------------ 7% 0.75% of the MGIB Charge Base 0.1875% of the MGIB Charge Base - --------------- -------------------------------- ------------------------------ MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The annual charge for the MGWB rider is 0.35% (0.0875% quarterly) of the contract value. The charge is deducted from the contract value on each quarterly contract anniversary date, in arrears. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge immediately prior to the surrender or annuitization. Please see the appendix that is applicable to you for the optional rider charges under your Contract. TRUST AND FUND EXPENSES Each portfolio deducts portfolio management fees and charges from the amounts you have invested in the portfolios. In addition, certain portfolios deduct a service fee, which is used to compensate service providers for administrative and contract holder services provided on behalf of the portfolios, and certain portfolios deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of shares of the applicable portfolio. See "Fees and Expenses -- Trust or Fund Expenses." - -------------------------------------------------------------------------------- THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- The Contract described in this prospectus is a deferred combination variable and fixed annuity contract. The Contract provides a means for you to invest in one or more of the available mutual fund portfolios of the Trusts and Funds through Separate Account B. It also provides a means for you to invest in a Fixed Interest Allocation through the Fixed Account. See Appendix C and the Fixed Account II prospectus for more information on the Fixed Interest Allocation and Fixed Account. CONTRACT DATE AND CONTRACT YEAR The date the Contract became effective is the contract date. Each 12-month period following the contract date is a contract year. CONTRACT OWNER You are the contract owner. You have the rights and options described in the Contract. One or more persons may own the Contract. If there are multiple owners named, the age of the oldest owner will determine the applicable death benefit if such death benefit is available for multiple owners. Landmark-###### 14 The death benefit becomes payable when you die. In the case of a sole contract owner who dies before the annuity start date, we will pay the beneficiary the death benefit then due. The sole contract owner's estate will be the beneficiary if no beneficiary has been designated or the beneficiary has predeceased the contract owner. In the case of a joint owner of the Contract dying before the annuity start date, we will designate the surviving contract owner as the beneficiary. This will override any previous beneficiary designation. If the contract owner is a trust and a beneficial owner of the trust has been designated, the beneficial owner will be treated as the contract owner for determining the death benefit. If a beneficial owner is changed or added after the contract date, we will treat this as a change of contract owner for determining the death benefit (likely a taxable event). If no beneficial owner of the trust has been designated, the availability of Enhanced Death Benefits will be based on the age of the annuitant at the time you purchase the Contract. CONTRACT OWNER CATEGORIES. There are four categories of contract owners covered by this prospectus. For ease of reference, they are called Yr-2001, May-2002, Yr-2003 and Yr-2004 contract owners. If you are a contract owner, the category of your Contract is indicated on your quarterly statements. If you are unsure which category applies to you, please call our Customer Service Center. The telephone number is (800) 366-0066. The following is a general description of the categories: - ---------------- -------------------------------------------------------- YR-2001: Contracts under which the determination of benefits when there are allocations to Special Funds is based on the better of the original Yr-2001 benefit calculation and the Special Funds "floor" (as available in the state of issue at the time of purchase). - ---------------- -------------------------------------------------------- - ---------------- -------------------------------------------------------- MAY-2002: Contracts purchased on or after May 1, 2002, under which the determination of benefits when there are allocations to Special Funds is the same as the Special Funds "floor," but all withdrawals are pro-rata (as available in the state of issue at the time of purchase). - ---------------- -------------------------------------------------------- - ---------------- -------------------------------------------------------- YR-2003: Contracts purchased on or after February 4, 2003 which have the same death benefits and living benefits as May-2002 Contracts, but have a different calculation of the Minimum Guaranteed Income Benefit and higher charges for all three living benefit optional riders. - ---------------- -------------------------------------------------------- - ---------------- -------------------------------------------------------- YR-2004: Contracts purchased on or after February X, 2004 which offer the Quarterly Ratchet Death Benefit, do not offer the 7% Solution Death Benefit, do not offer the Minimum Guaranteed Accumulation Benefit and offer a Minimum Guaranteed Withdrawal Benefit with reset and step-up benefit options. - ---------------- -------------------------------------------------------- A description of benefits and charges for Yr-2001, May-2002 and Yr-2003 contract owners is included in the appendices to this prospectus, to the extent they differ from those described in this prospectus for Yr-2004 contract owners. PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. JOINT OWNER. For non-qualified Contracts only, joint owners may be named in a written request before the Contract is in effect. Joint owners may independently exercise transfers and other transactions allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. All rights of a joint owner end at death of that owner if the other joint owner survives. The entire interest of the deceased joint owner in the Contract will pass to the surviving joint owner and the death benefit will be payable. Joint owners may only select the Standard Death Benefit option. The earnings multiplier benefit rider is not available when there are joint owners. Landmark-###### 15 Any addition or deletion of a joint owner is treated as a change of owner which may affect the amount of the death benefit. See "Change of Contract Owner or Beneficiary" below. If you have elected an Enhanced Death Benefit, and you add a joint owner, the Enhanced Death Benefit from the date of change will end. If the older joint owner is attained age 85 or under, the Standard Death Benefit will apply. If the older joint owner is attained age 86 or over on the date of the ownership change, the death benefit will be the cash surrender value. The mortality and expense risk charge going forward will reflect the change in death benefit. If you elected the earnings multiplier benefit rider, it will terminate if you add a joint owner. Note that returning a Contract to single owner status will not restore any Enhanced Death Benefit or the earnings multiplier benefit. Unless otherwise specified, the term "age" when used for joint owners shall mean the age of the oldest owner. ANNUITY START DATE The annuity start date is the date you start receiving annuity payments under your Contract. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the income phase. The accumulation phase is the period between the contract date and the annuity start date. The income phase begins when you start receiving regular annuity payments from your Contract on the annuity start date. ANNUITANT The annuitant is the person designated by you to be the measuring life in determining annuity payments. You are the annuitant unless you name another annuitant in the application. The annuitant's age determines when the income phase must begin and the amount of the annuity payments to be paid. The contract owner will receive the annuity benefits of the Contract if the annuitant is living on the annuity start date. You may not change the annuitant after the Contract is in effect. If the contract owner is an individual, and the annuitant dies before the annuity start date and you have named a contingent annuitant, the contingent annuitant becomes the annuitant. If the annuitant dies before the annuity start date and there is no contingent annuitant, the contract owner will become the annuitant. The contract owner may designate a new annuitant within 60 days of the death of the annuitant. If the annuitant was the sole contract owner and there is no beneficiary designation, the annuitant's estate will be the beneficiary. If the contract owner is not an individual, and the annuitant dies before the annuity start date, we will pay the designated beneficiary the death benefit then due. If a beneficiary has not been designated, or if there is no designated beneficiary living, the contract owner will be the beneficiary. Regardless of whether a death benefit is payable, if the annuitant dies and any contract owner is not an individual, distribution rules under federal tax law will apply. You should consult your tax adviser for more information if you are not an individual. BENEFICIARY The beneficiary is named by you in a written request. The beneficiary is the person who receives any death benefit proceeds. We pay death benefits to the primary beneficiary (unless there are joint owners, in which case death proceeds are payable to the surviving owner(s)). If the beneficiary dies before the annuitant or the contract owner, we pay the death benefit proceeds to the contingent beneficiary, if any. If there is no surviving beneficiary, we pay the death benefit proceeds to the contract owner's estate. One or more persons may be a beneficiary or contingent beneficiary. In the case of more than one beneficiary, we will assume any death benefit proceeds are to be paid in equal shares to the surviving beneficiaries. CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's lifetime, you may transfer ownership of a non-qualified Contract. A change in ownership may affect the amount of the death benefit, the guaranteed minimum death benefit and/or the death benefit option applied to the Contract, the Landmark-###### 16 amount of the earnings multiplier benefit, if applicable, and the continuation of any other optional rider that you have elected. The new owner's age, as of the date of the change, will be used as the basis for determining the applicable benefits and charges. The new owner's death will determine when a death benefit is payable. If you have elected the Standard Death Benefit option, the minimum guaranteed death benefit will continue if the new owner is age 85 or under on the date of the ownership change. For the Enhanced Death Benefit options, if the new owner is age 79 or under on the date that ownership changes, the minimum guaranteed death benefit will continue. If the new owner is age 80 to 85, the Enhanced Death Benefit will end, and the death benefit will become the Standard Death Benefit. For all death benefit options, 1) if the new owner's attained age is 86 or over on the date of the ownership change, or 2) if the new owner is not an individual (other than a trust for the benefit of the owner or annuitant), the death benefit will be the cash surrender value. The mortality and expense risk charge going forward will reflect the change in death benefit. Please note that once a death benefit has been changed due to a change in owner, a subsequent change to a younger owner will not restore any Enhanced Death Benefits. If you have elected the earnings multiplier benefit rider, and the new owner is under age 76, the rider will continue. The benefit will be adjusted to reflect the attained age of the new owner as the issue age. We will use the Maximum Base and Benefit Base percentages in effect on the original rider date to calculate the benefit. If the new owner is age 76 or over, the rider will terminate. If you have not elected the earnings multiplier benefit rider, the new owner may not add the rider upon the change of ownership. If you have elected another optional rider, the rider will terminate upon a change of ownership. A change of owner likely has tax consequences. See "Federal Tax Considerations" in this prospectus. You have the right to change beneficiaries during the annuitant's lifetime unless you have designated an irrevocable beneficiary. If you have designated an irrevocable beneficiary, you and the irrevocable beneficiary may have to act together to exercise some of the rights and options under the Contract. You may also restrict a beneficiary's right to elect an annuity option or receive a lump sum payment. If so, such rights or options will not be available to the beneficiary. All requests for changes must be in writing and submitted to our Customer Service Center. The change will be effective as of the day you sign the request. The change will not affect any payment made or action taken by us before recording the change. PURCHASE AND AVAILABILITY OF THE CONTRACT We will issue a Contract only if both the annuitant and the contract owner are age 85 or younger. The initial premium payment must be $10,000 or more ($1,500 for qualified Contracts). You may make additional payments of $500 or more ($50 for qualified Contracts) at any time after the free look period, before the contract anniversary following your 86th birthday and during the accumulation phase. Under certain circumstances, we may waive the minimum premium payment requirement. We may also change the minimum initial or additional premium requirements for certain group or sponsored arrangements. An initial or additional premium payment that would cause the contract value of all annuities that you maintain with us to exceed $1,000,000 requires our prior approval. The Contract may not be available to all ages through all broker dealers. The Contract is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes. The tax-deferred feature is more attractive to people in high federal and state tax brackets. YOU SHOULD NOT BUY THIS CONTRACT: (I) IF YOU ARE LOOKING FOR A SHORT-TERM INVESTMENT; (II) IF YOU CANNOT RISK GETTING BACK LESS MONEY THAN YOU PUT IN; OR (III) IF YOUR ASSETS ARE IN A PLAN WHICH PROVIDES FOR TAX-DEFERRAL AND YOU SEE NO OTHER REASON TO PURCHASE THIS CONTRACT. IRAs and other qualified plans already have the tax-deferral feature found in this Contract. For an additional cost, the Contract provides other features and benefits including death benefits and the ability to receive a lifetime income. You should not purchase a qualified Contract unless you want these other features and benefits, taking into account their cost. See "Fees and Expenses" in this prospectus. IF YOU Landmark-###### 17 ARE CONSIDERING AN ENHANCED DEATH BENEFIT OPTION AND/OR THE EARNINGS MULTIPLIER BENEFIT RIDER AND YOUR CONTRACT WILL BE AN IRA, SEE "TAXATION OF QUALIFIED CONTRACTS -- INDIVIDUAL RETIREMENT ANNUITIES" AND "TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT" IN THIS PROSPECTUS. We and our affiliates offer other variable products that may offer some of the same investment portfolios. These products have different benefits and charges, and may or may not better match your needs. If you are interested in learning more about these other products, contact our Customer Service Center or your registered representative. CREDITING OF PREMIUM PAYMENTS We will process your initial premium within 2 business days after receipt, if the application and all information necessary for processing the Contract are complete. We will process subsequent premium payments within 1 business day if we receive all information necessary. In certain states we also accept initial and additional premium payments by wire order. Wire transmittals must be accompanied by sufficient electronically transmitted data. We may retain your initial premium payment for up to 5 business days while attempting to complete an incomplete application. If the application cannot be completed within this period, we will inform you of the reasons for the delay. We will also return the premium payment immediately unless you direct us to hold the premium payment until the application is completed. We will allocate your initial payment according to the instructions you specified. If a subaccount is not available or requested in error, we will make inquiry about a replacement subaccount. If we are unable to reach you or your representative, we will consider the application incomplete. For initial premium payments designated for a subaccount of Separate Account B, we will credit the payment at the accumulation unit value next determined after we receive your premium payment and the completed application. Once the completed application is received, we will allocate the payment to the subaccounts and/or Fixed Interest Allocation of Separate Account B specified by you within 2 business days. We will ask about any missing information related to subsequent payments. We will allocate the subsequent payment(s) pro-rata according to the current variable subaccount allocation unless you specify otherwise. Any fixed allocation(s) will not be considered in the pro-rata calculations. If a subaccount is no longer available or requested in error, we will allocate the subsequent payment(s) proportionally among the other subaccount(s) in your current allocation or your allocation instructions. For any subsequent premium payments, we will credit the payment designated for a subaccount of Separate Account B at the accumulation unit value next determined after receipt of your premium payment and instructions. Once we allocate your premium payment to the subaccounts selected by you, we convert the premium payment into accumulation units. We divide the amount of the premium payment allocated to a particular subaccount by the value of an accumulation unit for the subaccount to determine the number of accumulation units of the subaccount to be held in Separate Account B with respect to your Contract. The net investment results of each subaccount vary with its investment performance. If your premium payment was transmitted by wire order from your broker/dealer, we will follow one of the following two procedures after we receive and accept the wire order and investment instructions. The procedure we follow depends on state availability and the procedures of your broker/dealer. 1) If either your state or broker/dealer do not permit us to issue a Contract without an application, we reserve the right to rescind the Contract if we do not receive and accept a properly completed application or enrollment form within 5 days of the premium payment. If we do not receive the application or form within 5 days of the premium payment, we will refund the contract value plus any charges we deducted, and the Contract will be voided. Some states require that we return the premium paid. 2) If your state and broker/dealer allow us to issue a Contract without an application, we will issue and mail the Contract to you or your representative, together with an Application Acknowledgement Statement for your execution. Until our Customer Service Center receives Landmark-###### 18 the executed Application Acknowledgement Statement, neither you nor the broker/dealer may execute any financial transactions on your Contract unless they are requested in writing by you. We may require additional information before complying with your request (e.g., signature guarantee). In some states, we may require that an initial premium designated for a subaccount of Separate Account B or the Fixed Account be allocated to a subaccount specially designated by the Company (currently, the Liquid Assets subaccount) during the free look period. After the free look period, we will convert your contract value (your initial premium plus any earnings less any expenses) into accumulation units of the subaccounts you previously selected. The accumulation units will be allocated based on the accumulation unit value next computed for each subaccount. Initial premiums designated for Fixed Interest Allocations will be allocated to a Fixed Interest Allocation with the guaranteed interest period you have chosen; however, in the future we may allocate the premiums to the specially designated subaccount during the free look period. We may also refuse to accept certain forms of premium payments or loan repayments, if applicable, (traveler's checks, for example) or restrict the amount of certain forms of premium payments or loan repayments (money orders totaling more than $5,000, for example). In addition, we may require information as to why a particular form of payment was used (third party checks, for example) and the source of the funds of such payment in order to determine whether or not we will accept it. Use of an unacceptable form of payment may result in us returning your premium payment and not issuing the contract. ADMINISTRATIVE PROCEDURES We may accept a request for Contract service in writing, by telephone, or other approved electronic means, subject to our administrative procedures, which vary depending on the type of service requested and may include proper completion of certain forms, providing appropriate identifying information, and/or other administrative requirements. We will process your request at the contract value next determined only after you have met all administrative requirements. CONTRACT VALUE We determine your contract value on a daily basis beginning on the contract date. Your contract value is the sum of (i) the contract value in the Fixed Interest Allocations, and (ii) the contract value in each subaccount in which you are invested. CONTRACT VALUE IN FIXED INTEREST ALLOCATIONS. The contract value in your Fixed Interest Allocation is the sum of premium payments allocated to the Fixed Interest Allocation under the Contract, plus contract value transferred to the Fixed Interest Allocation, plus credited interest, minus any transfers and withdrawals from the Fixed Interest Allocation (including any Market Value Adjustment applied to such withdrawal), contract fees (including, in some cases, fees for optional benefit riders) and premium taxes. CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the contract value in the subaccount in which you are invested is equal to the initial premium paid and designated to be allocated to the subaccount. On the contract date, we allocate your contract value to each subaccount and/or a Fixed Interest Allocation specified by you, unless the Contract is issued in a state that requires the return of premium payments during the free look period, in which case, the portion of your initial premium not allocated to a Fixed Interest Allocation may be allocated to a subaccount specially designated by the Company during the free look period for this purpose (currently, the Liquid Assets subaccount). On each business day after the contract date, we calculate the amount of contract value in each subaccount as follows: 1) We take the contract value in the subaccount at the end of the preceding business day. 2) We multiply (1) by the subaccount's Net Rate of Return since the preceding business day. Landmark-###### 19 3) We add (1) and (2). 4) We add to (3) any additional premium payments, and then add or subtract any transfers to or from that subaccount. 5) We subtract from (4) any withdrawals and any related charges, and then subtract any contract fees and premium taxes. CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value will fluctuate daily based on the investment results of the subaccounts in which you are invested and interest credited to Fixed Interest Allocations and any Market Value Adjustment. See Appendix C and the ING USA Fixed Account II prospectus for a description of the calculation of cash surrender value under any Fixed Interest Allocation. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your contract value, adjust for any Market Value Adjustment, and then we deduct any surrender charge, any charge for premium taxes, the annual contract administrative fee (unless waived), any optional benefit rider charge, and any other charges incurred but not yet deducted. SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE. You may surrender the Contract at any time while the annuitant is living and before the annuity start date. A surrender is effective on the date we receive your written request and the Contract at our Customer Service Center. After we receive all paperwork required for us to process your surrender, we will determine and pay the cash surrender value at the price next determined. Once paid, all benefits under the Contract will terminate. For administrative purposes, we will transfer your money to a specially designated subaccount (currently the Liquid Assets subaccount) prior to processing the surrender. This transfer will have no effect on your cash surrender value. You may receive the cash surrender value in a single sum payment or apply it under one or more annuity options. We will usually pay the cash surrender value within 7 days. Consult your tax adviser regarding the tax consequences associated with surrendering your Contract. A surrender made before you reach age 59 1/2 may result in a 10% tax penalty. See "Federal Tax Considerations" for more details. ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHARGES We may make additional subaccounts available to you under the Contract. These subaccounts will invest in investment portfolios we find suitable for your Contract. We may also withdraw or substitute investment portfolios, subject to the conditions in your Contract and compliance with regulatory requirements. We may amend the Contract to conform to applicable laws or governmental regulations. If we feel that investment in any of the investment portfolios has become inappropriate to the purposes of the Contract, we may, with approval of the SEC (and any other regulatory agency, if required) substitute another portfolio for existing and future investments. If you elected the dollar cost averaging, systematic withdrawals or automatic rebalancing programs, or if you have other outstanding instructions and we substitute or otherwise eliminate a portfolio subject to those instructions, we will execute your instructions using the substituted or proposed replacement portfolio, unless you request otherwise. The substitute or proposed replacement portfolio may have higher fees and charges than any portfolio it replaces. We will provide you with written notice before we make these changes. We reserve the right to: (i) deregister Separate Account B under the 1940 Act; (ii) operate Separate Account B as a management company under the 1940 Act if it is operating as a unit investment trust; (iii) operate Separate Account B as a unit investment trust under the 1940 Act if it is operating as a managed separate account; (iv) restrict or eliminate any voting rights as to Separate Account B; and (v) combine Separate Account B with other accounts. We will provide you with written notice before we make any of these changes. Landmark-###### 20 THE FIXED ACCOUNT The Fixed Account is a segregated asset account which contains the assets that support a contract owner's Fixed Interest Allocations. See Appendix C and the Fixed Account II prospectus for more information. OPTIONAL RIDERS Subject to state availability, you may elect one of the two optional benefit riders discussed below. YOU MAY ADD ONLY ONE OF THESE TWO RIDERS TO YOUR CONTRACT. EACH RIDER HAS A SEPARATE CHARGE. Once elected, the riders generally may not be cancelled. You may not remove the rider and charges will be assessed regardless of the performance of your Contract. Please see "Charges and Fees -- Optional Rider Charges" for information on rider charges. The following describes the optional riders for Contracts in the Yr-2004 category. A description of the optional rider benefits for all other contract owners is included in the appendices to this prospectus, to the extent they differ from those described in the prospectus for Yr-2004 contract owners. Please retain this prospectus and the appendix that is applicable to you so you will have it for future reference. THE OPTIONAL RIDERS MAY NOT BE AVAILABLE FOR ALL INVESTORS. YOU SHOULD ANALYZE EACH RIDER THOROUGHLY AND UNDERSTAND IT COMPLETELY BEFORE YOU SELECT ONE. THE OPTIONAL RIDERS DO NOT GUARANTEE ANY RETURN OF PRINCIPAL OR PREMIUM PAYMENTS AND DO NOT GUARANTEE PERFORMANCE OF ANY SPECIFIC INVESTMENT PORTFOLIO UNDER THE CONTRACT. YOU SHOULD CONSULT A QUALIFIED FINANCIAL ADVISER IN EVALUATING THE RIDERS. THE OPTIONAL RIDERS MAY NOT BE APPROVED IN ALL STATES. CHECK WITH OUR CUSTOMER SERVICE CENTER FOR AVAILABILITY IN YOUR STATE. THE TELEPHONE NUMBER IS (800) 366-0066. RIDER DATE. The rider date is the date an optional benefit rider becomes effective. The rider date is also the contract date if you purchase the rider when the Contract is issued. NO CANCELLATION. Once you purchase a rider, you may not cancel it unless you cancel the Contract during the Contract's free look period, surrender, annuitize or otherwise terminate the Contract. These events automatically cancel any rider. Once the Contract continues beyond the free look period, you may not cancel the rider. The Company may, at its discretion, cancel and/or replace a rider at your request in order to renew or reset a rider. TERMINATION. The optional riders are "living benefits," which means the guaranteed benefits offered by the riders are intended to be available to you while you are living and while your Contract is in the accumulation phase. The optional riders automatically terminate if you: o annuitize, surrender or otherwise terminate your Contract during the accumulation phase; or o die during the accumulation phase (first owner to die if there are multiple contract owners, or at death of annuitant if contract owner is not a natural person), unless your spouse beneficiary elects to continue the Contract. The optional riders will also terminate if there is a change in contract ownership (other than a spousal beneficiary continuation on your death). Other circumstances which may cause a particular optional rider to terminate automatically are discussed below with each rider. MINIMUM GUARANTEED INCOME BENEFIT RIDER (MGIB). The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to Special Funds or Excluded Funds, the MGIB Rate, the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the MGIB. Landmark-###### 21 The following investment options are designated as Special Funds for purposes of calculating the MGIB: the ING Liquid Assets Portfolio, the ING Limited Maturity Bond Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division and the TSA Special Fixed Account. For contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. The MGIB Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rate is an annual effective rate. For a discussion of the charges we deduct under the MGIB rider, see "Charges and Fees -- Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Date is the greatest of: 1) your annuity income based on your contract value adjusted for any Market Value Adjustment (see Appendix C and the Fixed Account II prospectus) on the MGIB Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; 2) your annuity income based on your contract value adjusted for any Market Value Adjustment (see Appendix C and the Fixed Account II prospectus) on the MGIB Date applied to the then-current income factors in effect for the annuity option you selected; or 3) the MGIB annuity income based on your MGIB Base on the MGIB Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust the MGIB Base for any premium tax recovery and Market Value Adjustment (see Appendix C and the Fixed Account II prospectus) that would otherwise apply at annuitization. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. The MGIB Benefit Base is only a calculation used to determine the MGIB annuity income. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Benefit Base or Maximum MGIB Base. The MGIB Benefit Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value) and credits, and subsequently allocated eligible premiums and any credits we add, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Date. We require a 10-year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30-day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Date. DETERMINING THE MGIB CHARGE BASE: The MGIB Charge Base is the greater of the MGIB Rollup Base and the MGIB Ratchet Base. (i) The MGIB Rollup Base is equal to the lesser of the Maximum MGIB Base and the sum of (a), (b) and (c) where: (a) is the MGIB Rollup Base for Covered Funds; Landmark-###### 22 (b) is the MGIB Rollup Base for Special Funds; (c) is the MGIB Rollup Base for Excluded Funds; and (ii) The MGIB Ratchet Base is equal to the sum of (a) and (b) where: (a) is the MGIB Ratchet Base for Covered and Special Funds; and (b) is the MGIB Ratchet Base for Excluded Funds. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Date, we calculate your MGIB annuity income as follows: 1) WE FIRST DETERMINE YOUR MGIB BENEFIT BASE: The MGIB Benefit Base is equal to the greater of the MGIB Rollup Benefit Base and the MGIB Ratchet Benefit Base. (i) The MGIB Rollup Benefit Base is equal to the lesser of the Maximum MGIB Base and the sum of (a), (b) and (c) where: (a) is the MGIB Rollup Base for Covered Funds; (b) is the MGIB Rollup Base for Special Funds; (c) is the contract value allocated to Excluded Funds; and (ii) The MGIB Ratchet Benefit Base is equal to the sum of (a) and (b) where: (a) is the MGIB Ratchet Base for Covered and Special Funds; and b) is the contract value allocated to Excluded Funds. The Maximum MGIB Base is 300% of eligible premiums and credits adjusted pro-rata for withdrawals. The Maximum MGIB Base is not allocated by Fund category and credits. A) CALCULATION OF MGIB ROLLUP BENEFIT BASE THE MGIB ROLLUP BASE ALLOCATED TO COVERED FUNDS equals the eligible premiums and credits allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rollup Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Benefit Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB ROLLUP BASE ALLOCATED TO SPECIAL FUNDS equals the eligible premiums and credits allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. THERE IS NO ACCUMULATION OF MGIB ROLLUP BASE ALLOCATED TO SPECIAL FUNDS. THE MGIB ROLLUP BASE ALLOCATED TO EXCLUDED FUNDS equals the eligible premiums and credits allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Benefit Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB ROLLUP BASE ALLOCATED TO EXCLUDED FUNDS IS USED ONLY FOR TRANSFER ADJUSTMENTS AND RIDER CHARGES. IT IS NOT USED TO DETERMINE BENEFITS. Eligible premiums and credits are those added more than 5 years before the earliest MGIB Benefit Date. Premiums paid and credits after that are excluded from the MGIB Rollup Base. The MGIB Rollup Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rollup Rate is an annual effective rate. Landmark-###### 23 Withdrawals reduce the MGIB Rollup Base on a pro-rata basis. The percentage reduction in the MGIB Rollup Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. For example, the value of the MGIB Rollup Base in Covered Funds after a withdrawal from one or more Covered Funds equals the value of the MGIB Rollup Base in Covered Funds before the withdrawal times the contract value in Covered Funds after the withdrawal divided by the contract value in Covered Funds before the withdrawal. Net transfers from Covered Funds will reduce the MGIB Rollup Base allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Special or Excluded Funds, as applicable, will equal the reduction in the MGIB Rollup Base allocated to Covered Funds. Net transfers from Special Funds will reduce the MGIB Rollup Base allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Covered or Excluded Funds, as applicable, will equal the reduction in the MGIB Rollup Base allocated to Special Funds. Net transfers from Excluded Funds will reduce the MGIB Rollup Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Covered or Special Funds, as applicable, will equal the lesser of the net contract value transferred and the change in the MGIB Rollup Base allocated to Excluded Funds. B) CALCULATION OF MGIB RATCHET BENEFIT BASE The MGIB RATCHET BASE FOR COVERED FUNDS AND SPECIAL FUNDS equals: o on the rider date, eligible premiums plus credits, or the contract value, if applicable, allocated to Covered Funds and Special Funds; o on each "quarterly anniversary date" prior to attainment of age 90, the MGIB Ratchet Base for Covered Funds and Special Funds is set equal to the greater of : 1) the current contract value allocated to Covered Funds and Special Funds (after any deductions occurring on that date); and 2) the MGIB Ratchet Base for Covered Funds and Special Funds from the most recent prior quarterly anniversary date, adjusted for any new eligible premiums and withdrawals attributable to Covered Funds or Special Funds, and transfers. o at other times, the MGIB Ratchet Base for Covered Funds and Special Funds is the MGIB Ratchet Base from the prior quarterly anniversary date, adjusted for subsequent eligible premiums and withdrawals attributable to Covered Funds or Special Funds, and transfers. The MGIB RATCHET BASE FOR EXCLUDED FUNDS is calculated the same as for Covered Funds and Special Funds, but for premiums, credits, allocations, withdrawals or transfers attributable to Excluded Funds. Effect of Transfers on MGIB Ratchet Base: Net transfers from Covered or Special Funds to Excluded Funds will reduce the MGIB Ratchet Base allocated to Covered and Special Funds on a pro-rata basis. The resulting increase in the MGIB Ratchet Base allocated to Excluded Funds will equal the reduction in the MGIB Ratchet Base allocated to Covered and Special Funds. Net transfers from Excluded Funds to Covered or Special Funds will reduce the MGIB Ratchet Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Landmark-###### 24 Ratchet Base allocated to Covered and Special Funds will equal the lesser of the net contract value transferred and the change in the MGIB Ratchet Base allocated to Excluded Funds. A "quarterly anniversary date" is the date three months from the contract date that falls on the same date in the month as the contract date. For example, if the contract date is February 12, the quarterly anniversary date is May 12. If there is no corresponding date in the month, the quarterly anniversary date will be the last date of such month. If the quarterly anniversary date falls on a weekend or holiday, we will use the value as of the subsequent business day. 2) THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT, SURRENDER CHARGE AND PREMIUM TAXES) BY THE INCOME FACTOR, AND THEN DIVIDE BY $1,000. MGIB INCOME OPTIONS The following are the MGIB Income Options available under the MGIB Rider: a) Income for Life (Single Life or Joint with 100% Survivor) and 10-20 year certain; b) Income for a 20-30 year period certain; c) Any other income plan offered by the Company in conjunction with the MGIB rider on the MGIB Benefit Date. You may elect to have payments under MGIB Income Options (a) and (b) increase annually at 1%, 2% or 3%. Once during the life of the Contract, you have the option to elect to apply up to 50% of the MGIB Benefit Base to one of the MGIB Income Options available under the Rider. This option may only be exercised on a contract anniversary at or after the end of the waiting period. The portion of the MGIB Benefit Base so applied will be used to determine the MGIB income, as is otherwise described in the prospectus. The Contract Value will be reduced on a pro-rata basis. Any subsequent exercise of your right to receive payments under the MGIB rider must be for 100% of the remaining value. The amount applied to the partial annuitization will be treated as a withdrawal for purposes of adjusting contract and rider values. PLEASE NOTE THAT IF YOU ELECT PARTIAL ANNUITIZATION, INCOME PAYMENTS RECEIVED WILL BE TAXED AS WITHDRAWALS. PLEASE CONSULT YOUR TAX ADVISER BEFORE MAKING THIS ELECTION, AS THE TAXATION OF PARTIAL ANNUITIZATION IS UNCERTAIN. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten-year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten year waiting period before you can annuitize under the MGIB rider. This could reduce the MGIB. THE MGIB DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Date is the contract anniversary on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. If you added the MGIB rider at any other time, your MGIB Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuitize under the MGIB rider. NO CHANGE OF ANNUITANT. Once you purchase the MGIB rider, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. Landmark-###### 25 NOTIFICATION. On or about 30 days prior to the MGIB Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise it. We will determine the actual amount of the MGIB annuity benefit as of the MGIB Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN A MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER (MGWB). The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero, you will receive periodic payments. The amount of the periodic payments is based on the amount in the MGWB Withdrawal Account. The guarantee provides that, subject to the conditions described below, the amount you will receive in periodic payments is equal to your Eligible Payment Amount adjusted for any prior withdrawals. Your Eligible Payment Amount depends on when you purchase the MGWB rider and equals: 1) if you purchased the MGWB rider on the contract date: your premium payments received during the first two contract years; 2) if you purchased the MGWB rider after the contract date: your contract value on the Rider Date, including any premiums received that day, and any subsequent premium payments received during the two-year period commencing on the Rider Date. To maintain the guarantee, withdrawals in any contract year may not exceed 7% of your Eligible Payment Amount adjusted, as defined below. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. The MGWB Withdrawal Account is equal to the Eligible Payment Amount adjusted for any withdrawals and transfers between Covered and Excluded Funds. The MGWB Withdrawal Account is tracked separately for Covered and Excluded Funds. The MGWB Withdrawal Account equals the sum of (a) the MGWB Withdrawal Account allocated to Covered Funds, and (b) the lesser of (i) the MGWB Withdrawal Account allocated to Excluded Funds and (ii) the contract value in Excluded Funds. Thus, investing in the Excluded Funds may limit the MGWB Withdrawal Account. No investment options are currently designated as Excluded Funds for the Minimum Guaranteed Withdrawal Benefit. The Maximum Annual Withdrawal Amount (or "MAW") is equal to 7% of the Eligible Payment Amount. Withdrawals from Covered Funds of up to the MAW will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal. Any withdrawals from Covered Funds greater than the MAW will cause a reduction in the MGWB Withdrawal Account allocated to Covered Funds by the proportion that the excess withdrawal bears to the remaining contract value in Covered Funds after the withdrawal of the MAW. All withdrawals from Excluded Funds will reduce the value of the MGWB Withdrawal Account allocated to Excluded Funds on a pro-rata basis. If a single withdrawal involves both Covered and Excluded Funds and exceeds 7%, the withdrawal will be treated as taken first from Covered Funds. Any withdrawals greater than the MAW will also cause a reduction in the Eligible Payment Amount by the proportion that the excess portion of the withdrawal bears to the contract value remaining after withdrawal of the MAW at the time of the withdrawal. Once your contract value is zero, any periodic Landmark-###### 26 payments paid under the MGWB rider also reduce the MGWB Withdrawal Account by the dollar amount of the payments. If a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Covered Funds to Excluded Funds will reduce the MGWB Withdrawal Account allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Excluded Funds equals the reduction in the MGWB Withdrawal Account for Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the MGWB Withdrawal Account allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Covered Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Excluded Funds and the net contract value transferred. YOU SHOULD NOT MAKE ANY WITHDRAWALS IF YOU WISH TO RETAIN THE OPTION TO ELECT THE STEP-UP BENEFIT (SEE BELOW). The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." However, making any withdrawals in any year greater than the MAW will reduce the Eligible Payment Amount and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider will remain in force and you may continue to make withdrawals each year so long as: 1) your contract value is greater than zero; 2) your MGWB Withdrawal Account is greater than zero; 3) you have not reached your latest allowable annuity start date; 4) you have not elected to annuitize your Contract; and 5) you have not died (unless your spouse has elected to continue the Contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero, your Contract is given Automatic Periodic Benefit Status, if: 1) your MGWB Withdrawal Account is greater than zero; 2) you have not reached your latest allowable annuity start date; 3) you have not elected to annuitize your Contract; and 4) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, we will pay you the annual MGWB periodic payments, beginning on the next contract anniversary until the earliest of (i) your Contract's latest annuity start date, (ii) the death of the owner; or (iii) your MGWB Withdrawal Account is exhausted. These payments are equal to the lesser of the remaining MGWB Withdrawal Account or the MAW. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status, we will not accept any additional premium payments in your Contract, and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Landmark-###### 27 Status until the earliest of (i) payment of all MGWB periodic payments, (ii) payment of the Commuted Value (defined below) or (iii) the owner's death. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then-remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury STRIPS as quoted by a national quoting service for period(s) applicable to the remaining payments. Once we pay you the last MGWB periodic payment or the Commuted Value, your Contract and the MGWB rider terminate. RESET OPTION. Beginning on the fifth contract anniversary following the Rider Date, if the contract value is greater than the MGWB Withdrawal Account, you may choose to reset the MGWB Rider. The effect will be to terminate the existing MGWB Rider and add a new MGWB Rider ("New Rider"). The MGWB Withdrawal Account under the New Rider will equal the contract value on the date the New Rider is effective. The charge for the MGWB under the New Rider and any right to reset again will be based on the terms of the New Rider when it is issued. We reserve the right to limit the reset election to contact anniversaries only. STEP-UP BENEFIT. If the Rider Date is the same as the Contract Date, beginning on the fifth contract anniversary following the Rider Date, if you have not made any previous withdrawals, you may elect to increase the MGWB Withdrawal Account, the adjusted Eligible Payment Amount and the MAW by a factor of 20%. This option is available whether or not the contract value is greater than the MGWB Withdrawal Account. If you elect the Step-Up Benefit: 1) we reserve the right to increase the charge for the MGWB Rider; 2) you must wait at least five years from the Step-Up date to elect the Reset Option. The Step-Up Benefit may be elected only one time under this rider. DEATH OF OWNER. BEFORE AUTOMATIC PERIODIC BENEFIT STATUS. The MGWB rider terminates on the first owner's date of death (death of annuitant, if there is a non-natural owner), but the death benefit is payable. However, if the beneficiary is the owner's spouse, the spouse elects to continue the Contract, and the contract value steps up to the minimum guaranteed death benefit, the MGWB Withdrawal Account and MAW are also reset. The MGWB charge will continue at the existing rate. Reset upon spousal continuation does not affect any then existing reset option. DURING AUTOMATIC PERIODIC BENEFIT STATUS. The death benefit payable during Automatic Periodic Benefit Status is your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. PURCHASE. To purchase the MGWB rider, you must be age 80 or younger on the Rider Date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. If the rider is not yet available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. For a discussion of the charges we deduct under the MGWB rider, see "Charges and Fees -- Optional Rider Charges." Each payment you receive under the MGWB rider will be taxed as a withdrawal and may be subject to a penalty tax. See "Withdrawals" and "Federal Tax Considerations" for more information. OTHER CONTRACTS We offer other variable annuity contracts that also invest in the same portfolios of the Trusts. These contracts have different charges that could affect their performance, and may offer different benefits Landmark-###### 28 more suitable to your needs. To obtain more information about these other contracts, contact our Customer Service Center or your registered representative. - -------------------------------------------------------------------------------- WITHDRAWALS - -------------------------------------------------------------------------------- Except under certain qualified Contracts, you may withdraw all or part of your money any time during the accumulation phase and before the death of the contract owner. If you request a withdrawal for more than 90% of the cash surrender value, and the remaining cash surrender value after the withdrawal is less than $2,500, we will treat it as a request to surrender the Contract. If any single withdrawal or the sum of withdrawals exceeds the Free Withdrawal Amount, you will incur a surrender charge. The Free Withdrawal Amount is the greater of (i) any earnings less previous withdrawals, and (ii) 10% of premium payments paid within 4 years prior to the date of the withdrawal and not previously withdrawn, less any withdrawals taken in the same contract year. You need to submit to us a written request specifying the Fixed Interest Allocations or subaccounts from which to withdraw amounts, otherwise we will make the withdrawal on a pro-rata basis from all of the subaccounts in which you are invested. If there is not enough contract value in the subaccounts, we will deduct the balance of the withdrawal from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until we have honored your request. We will apply a Market Value Adjustment to any withdrawal from your Fixed Interest Allocation taken more than 30 days before its maturity date. Definitive guidance on the proper federal tax treatment of the Market Value Adjustment has not been issued. You may want to discuss the potential tax consequences of a Market Value Adjustment with your tax adviser. We will determine the contract value as of the close of business on the day we receive your withdrawal request at our Customer Service Center. The contract value may be more or less than the premium payments made. If the aggregate percentage cap on allocations to the Restricted Funds has been exceeded, any subsequent withdrawals must be taken so that the percentage of contract value in the Restricted Funds following the withdrawal would not be greater than the percentage of contract value in the Restricted Funds prior to the withdrawal. If a requested withdrawal would cause the percentage cap to be exceeded, the amount of the withdrawal in excess of the cap would be taken pro-rata from all variable subaccounts. For administrative purposes, we will transfer your money to a specially designated subaccount (currently, the Liquid Assets subaccount) prior to processing the withdrawal. This transfer will not affect the withdrawal amount you receive. Please be aware that the benefit we pay under certain optional benefit riders will be reduced by any withdrawals you take while the optional benefit rider is in effect. See "Optional Riders." We offer the following three withdrawal options: REGULAR WITHDRAWALS After the free look period, you may make regular withdrawals. Each withdrawal must be a minimum of $100. We will apply a Market Value Adjustment to any regular withdrawal you take from a Fixed Interest Allocation more than 30 days before its maturity date. See Appendix C and the Fixed Account II prospectus for more information on the application of the Market Value Adjustment. SYSTEMATIC WITHDRAWALS You may choose to receive automatic systematic withdrawal payments (i) from the contract value in the subaccounts in which you are invested, or (ii) from the interest earned in your Fixed Interest Allocations. You may not elect the systematic withdrawal option if you are taking IRA withdrawals. Systematic withdrawals may be taken monthly, quarterly or annually. If you have contract value allocated to one or more Restricted Funds, and you elect to receive systematic withdrawals from the subaccounts in which you are invested, the systematic withdrawals must be taken pro-rata from all subaccounts in which Landmark-###### 29 contract value is invested. If you do not have contract value allocated to a Restricted Fund and choose systematic withdrawals on a non pro-rata basis, we will monitor the withdrawals annually. If you subsequently allocate contract value to one or more Restricted Funds, we will require you to take your systematic withdrawals on a pro-rata basis from all subaccounts in which contract value is invested. You decide when you would like systematic payments to start as long as it is at least 28 days after your contract date. You also select the date on which the systematic withdrawals will be made, but this date cannot be later than the 28th day of the month. If you have elected to receive systematic withdrawals but have not chosen a date, we will make the withdrawals on the same calendar day of each month as your contract date. If your contract date is after the 28th day of the month, your systematic withdrawal will be made on the 28th day of each month. Each systematic withdrawal amount must be a minimum of $100. The amount of your systematic withdrawal can either be (i) a fixed dollar amount or (ii) an amount based on a percentage of the premiums not previously withdrawn from the subaccounts in which you are invested. Both forms of systematic withdrawals are subject to the following maximum, which is calculated on each withdrawal date: - -------------------------------------------------------- MAXIMUM PERCENTAGE FREQUENCY OF CONTRACT VALUE - -------------------------------------------------------- Monthly 0.833% Quarterly 2.50% Annually 10.00% - -------------------------------------------------------- If your systematic withdrawal is a fixed dollar amount and the amount to be withdrawn would exceed the applicable maximum percentage of your premium payments not previously withdrawn on any withdrawal date, we will automatically reduce the amount withdrawn so that it equals such percentage. Thus, your fixed dollar systematic withdrawals will never exceed the maximum percentage. If you want fixed dollar systematic withdrawals to exceed the maximum percentage and are willing to incur associated surrender charges, consider the Fixed Dollar Systematic Withdrawal Feature discussed below which you may add to your regular fixed dollar systematic withdrawal program. If your systematic withdrawal is based on a percentage of the premiums not previously withdrawn from the subaccounts in which you are invested and the amount to be withdrawn based on that percentage would be less than $100, we will automatically increase the amount to $100 as long as it does not exceed the maximum percentage. If the systematic withdrawal would exceed the maximum percentage, we will send the amount, and then automatically cancel your systematic withdrawal option. We limit systematic withdrawals from Fixed Interest Allocations to interest earnings during the prior month, quarter, or year, depending on the frequency you chose. Systematic withdrawals are not subject to a Market Value Adjustment, unless you have added the Fixed Dollar Systematic Withdrawal Feature discussed below and the payments exceed interest earnings. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. A Fixed Interest Allocation may not participate in both the systematic withdrawal option and the dollar cost averaging program at the same time. You may change the amount or percentage of your systematic withdrawal once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. If you submit a subsequent premium payment after you have applied for systematic withdrawals, we will not adjust future withdrawals under the systematic withdrawal program unless you specifically request that we do so. The systematic withdrawal option may commence in a contract year where a regular withdrawal has been taken but you may not change the amount or percentage of your withdrawals in any contract year during which you have previously taken a regular withdrawal. Landmark-###### 30 Subject to availability, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the beneficiary's lifetime ("stretch"). Stretch payments will be subject to the same limitations as systematic withdrawals, and non-qualified stretch payments will be reported on the same basis as other systematic withdrawals. FIXED DOLLAR SYSTEMATIC WITHDRAWAL FEATURE. You may add the Fixed Dollar Systematic Withdrawal Feature to your regular fixed dollar systematic withdrawal program. This feature allows you to receive a systematic withdrawal in a fixed dollar amount regardless of any surrender charges or Market Value Adjustments. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. You choose the amount of the fixed systematic withdrawals, which may total up to an annual maximum of 10% of your premium payments not previously withdrawn as determined on the day we receive your election of this feature. We will not recalculate the maximum limit when you make additional premium payments, unless you instruct us to do so. We will assess a surrender charge on the withdrawal date if the withdrawal exceeds the maximum limit as calculated on the withdrawal date. We will assess a Market Value Adjustment on the withdrawal date if the withdrawal from a Fixed Interest Allocation exceeds your interest earnings on the withdrawal date. We will apply the surrender charge and any Market Value Adjustment directly to your contract value (rather than to the withdrawal) so that the amount of each systematic withdrawal remains fixed. Flat dollar systematic withdrawals which are intended to satisfy the requirements of Section 72(q) or 72(t) of the Tax Code may exceed the maximum. Such withdrawals are subject to surrender charges and Market Value Adjustments when they exceed the applicable maximum percentage. IRA WITHDRAWALS If you have a non-Roth IRA Contract and will be at least age 70 1/2 during the current calendar year, you may elect to have distributions made to you to satisfy requirements imposed by federal tax law. IRA withdrawals provide payout of amounts required to be distributed by the Internal Revenue Service ("IRS") rules governing mandatory distributions under qualified plans. We will send you a notice before your distributions commence. You may elect to take IRA withdrawals at that time, or at a later date. You may not elect IRA withdrawals and participate in systematic withdrawals at the same time. If you do not elect to take IRA withdrawals, and distributions are required by federal tax law, distributions adequate to satisfy the requirements imposed by federal tax law may be made. Thus, if you are participating in systematic withdrawals, distributions under that option must be adequate to satisfy the mandatory distribution rules imposed by federal tax law. You may choose to receive IRA withdrawals on a monthly, quarterly or annual basis. You may elect payments to start as early as 28 days after the contract date. You select the day of the month when the withdrawals will be made, but it cannot be later than the 28th day of the month. If no date is selected, we will make the withdrawals on the same calendar day of the month as the contract date. If your contract date is after the 28th day of the month, your IRA withdrawal will be made on the 28th day of each month. You may request us to calculate the amount you are required to withdraw from your Contract each year based on the information you give us and various choices you make. For information regarding the calculation and choices you have, see the SAI. Or, we will accept your written instructions regarding the calculated amount required to be withdrawn from your Contract each year. The minimum dollar amount you can withdraw is $100. When we determine the required IRA withdrawal amount for a taxable year based on the frequency you select, if that amount is less than $100, we will pay $100. At any time where the IRA withdrawal amount is greater than the contract value, we will cancel the Contract and send you the amount of the cash surrender value. You may change the payment frequency of your IRA withdrawals once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. An IRA withdrawal from a Fixed Interest Allocation in excess of the amount allowed under systematic withdrawals will be subject to a Market Value Adjustment. Landmark-###### 31 CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED WITH TAKING WITHDRAWALS. You are responsible for determining that withdrawals comply with applicable law. A withdrawal made before the taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See "Federal Tax Considerations" for more details. - -------------------------------------------------------------------------------- TRANSFERS AMONG YOUR INVESTMENTS - -------------------------------------------------------------------------------- Between the end of the free look period and the annuity start date, you may transfer your contract value among the subaccounts in which you are invested and your Fixed Interest Allocations. We currently do not charge you for transfers made during a contract year, but reserve the right to charge for each transfer after the twelfth transfer in a contract year. WE ALSO RESERVE THE RIGHT TO LIMIT THE NUMBER OF TRANSFERS YOU MAY MAKE AND MAY OTHERWISE MODIFY OR TERMINATE TRANSFER PRIVILEGES IF REQUIRED BY OUR BUSINESS JUDGMENT OR IN ACCORDANCE WITH APPLICABLE LAW. We will apply a Market Value Adjustment to transfers from a Fixed Interest Allocation taken more than 30 days before its maturity date, unless the transfer is made under the dollar cost averaging program. Keep in mind that transfers between Covered Funds, Special Funds and Excluded Funds and other investment portfolios may negatively impact your death benefit or rider benefits. If you allocate contract value to an investment option that has been designated as a Restricted Fund, your ability to transfer contract value to the Restricted Fund may be limited. A transfer to the Restricted Funds will not be permitted to the extent that it would increase the contract value in the Restricted Fund to more than the applicable limits following the transfer. We do not limit transfers from Restricted Funds. If the result of multiple reallocations is to lower the percentage of total contract value in the Restricted Fund, the reallocation will be permitted even if the percentage of contract value in the Restricted Fund is greater than the limit. Please be aware that the benefit we pay under an optional benefit rider may be affected by certain transfers you make while the rider is in effect. Transfers, including those involving Special Funds or Excluded Funds, may also affect your optional rider base. See "The Annuity Contract -- Optional Riders." The minimum amount that you may transfer is $100 or, if less, your entire contract value held in a subaccount or a Fixed Interest Allocation. To make a transfer, you must notify our Customer Service Center and all other administrative requirements must be met. We will determine transfer values at the end of the business day on which we receive the transfer request at our Customer Service Center. If we receive your transfer request after 4 p.m. eastern time or the close of regular trading of the New York Stock Exchange, we will make the transfer on the next business day. Separate Account B and the Company will not be liable for following instructions communicated by telephone or other approved electronic means that we reasonably believe to be genuine. We may require personal identifying information to process a request for transfer made over the telephone, over the internet or other approved electronic means. TRANSFERS BY THIRD PARTIES As a convenience to you, we currently allow you to give third parties the right to make transfers on your behalf. However, when the third party makes transfers for many contract owners, the result can be simultaneous transfers involving large amounts of contract values. Such transfers can disrupt the orderly management of the investment portfolios available to the Contract, can result in higher costs to contract owners, and may not be compatible with the long term goals of contract owners. We require third parties making multiple, simultaneous or large volume transfers to execute a third party service agreement with us prior to executing such transfers. Regardless of whether such an agreement is in place, we may at any time exercise our business judgment and limit or discontinue accepting transfers made by a third party. Limits may be based on, among other criteria, the amount of the aggregate trade or the available investment options for which third parties may make trades on behalf of multiple contract owners. We may also limit or discontinue the right to communicate transfers by facsimile, telephone or email. For Landmark-###### 32 example, we currently require that orders received via facsimile to effect transactions in subaccounts that invest in ProFund portfolios be received at our Customer Service Center no later than 3 p.m. eastern time. We may establish additional procedures or change existing procedures at any time in the exercise of our business judgment. DOLLAR COST AVERAGING You may elect to participate in our dollar cost averaging program if you have at least $1,200 of contract value in (i) the Limited Maturity Bond subaccount or the Liquid Assets subaccount, or (ii) a Fixed Interest Allocation with either a 6-month or a 1-year guaranteed interest period. These subaccounts or Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other subaccounts selected by you. We also may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively for use with the dollar cost averaging program. The DCA Fixed Interest Allocations require a minimum premium payment of $1,200 directed into a DCA Fixed Interest Allocation. A Fixed Interest Allocation or DCA Fixed Interest Allocation may not participate in the dollar cost averaging program and in systematic withdrawals at the same time. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to other subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. Unless you have a DCA Fixed Interest Allocation, you elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. If your source account is the Limited Maturity Bond subaccount, the Liquid Assets subaccount or a 1-year Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 12. If your source account is a 6-month Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 6. You may change the transfer amount once each contract year. If you have a DCA Fixed Interest Allocation, there is no minimum or maximum transfer amount. We will transfer all your money allocated to that source account into the subaccount(s) in equal payments over the selected 6-month or 1-year period. The last payment will include earnings accrued over the course of the selected period. If you make an additional premium payment into a Fixed Interest Allocation subject to dollar cost averaging, the amount of your transfers under the dollar cost averaging program remains the same, unless you instruct us to increase the transfer amount. Transfers from a Fixed Interest Allocation or a DCA Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. However, if you terminate the dollar cost averaging program for a DCA Fixed Interest Allocation and there is money remaining in the DCA Fixed Interest Allocation, we will transfer the remaining money to the Liquid Assets subaccount. Such transfer will trigger a Market Value Adjustment if the transfer is made more than 30 days before the maturity date of the DCA Fixed Interest Allocation. If you do not specify to which subaccounts you want to transfer the dollar amount of the source account, we will transfer the money to the subaccounts in which you are invested on a proportional basis. The transfer date is the same day each month as your contract date. If, on any transfer date, your contract value in a source account is equal or less than the amount you have elected to have transferred, the entire amount will be transferred and the program will end. You may terminate the dollar cost averaging program at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next transfer date. Landmark-###### 33 You are permitted to transfer contract value to a Restricted Fund, subject to the limitations described above in this section and in "Appendix B -- The Investment Portfolios." Compliance with the individual and aggregate Restricted Fund limits will be reviewed when the dollar cost averaging program is established. Transfers under the dollar cost averaging program must be within those limits. We will not review again your dollar cost averaging election for compliance with the individual and aggregate limits for investment in the Restricted Funds except in the case of the transactions described below. o Amount added to source account: If you add amounts to the source account which would increase the amount to be transferred under the dollar cost averaging program, we will review the amounts to be transferred to ensure that the individual and aggregate limits are not being exceeded. If such limits would be exceeded, we will require that the dollar cost averaging transfer amounts be changed to ensure that the transfers are within the limits based on the then-current allocation of contract value to the Restricted Fund(s) and the then-current value of the amount designated to be transferred to that Restricted Fund(s). o Additional premium paid: Up to the individual Restricted Fund percentage limit may be allocated to a Restricted Fund. If you request more than the individual limit be allocated to a Restricted Fund, we will look at the aggregate limit, subtract the current allocation to Restricted Funds, and subtract the current value of amounts to be transferred under the dollar cost averaging program to Restricted Funds. The excess, if any, is the maximum that may be allocated pro-rata to the Restricted Funds. o Reallocation request is made while the dollar cost averaging program is active: If the reallocation would increase the amount allocated to Restricted Funds, the maximum that may be so allocated is the individual Restricted Fund percentage limit, less the current allocation to Restricted Funds and less the current value of any remaining amounts to be transferred under the dollar cost averaging program to the Restricted Funds. We may offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program, stop offering DCA Fixed Interest Allocations or otherwise modify, suspend or terminate this program. Such change will not affect any dollar cost averaging programs in operation at the time. AUTOMATIC REBALANCING If you have at least $10,000 of contract value invested in the subaccounts of Separate Account B, you may elect to have your investments in the subaccounts automatically rebalanced. Automatic rebalancing is not available if you participate in dollar cost averaging. Automatic rebalancing will not take place during the free look period. Transfers made pursuant to automatic rebalancing do not count toward the 12 transfer limit on free transfers. You are permitted to reallocate between Restricted and non-Restricted Funds, subject to the limitations described above, in this section and in Appendix B -- The Investment Portfolios. If the reallocation would increase the amount allocated to the Restricted Funds, the maximum that may be so allocated is the individual Restricted Fund percentage limit, less the current allocation to all Restricted Funds. We will transfer funds under your Contract on a quarterly, semi-annual, or annual calendar basis among the subaccounts to maintain the investment blend of your selected subaccounts. The minimum size of any allocation must be in full percentage points. Rebalancing does not affect any amounts that you have allocated to the Fixed Account. The program may be used in conjunction with the systematic withdrawal option only if withdrawals are taken pro-rata. To participate in automatic rebalancing, send satisfactory notice to our Customer Service Center. We will begin the program on the last business day of the period in which we receive the notice. You may cancel the program at any time. The program will automatically terminate if you choose to reallocate your contract value among the subaccounts or if you make an additional premium payment or partial withdrawal on other than a pro-rata basis. Additional premium payments and partial withdrawals made on a pro-rata basis will not cause the automatic rebalancing program to terminate. - -------------------------------------------------------------------------------- DEATH BENEFIT CHOICES - -------------------------------------------------------------------------------- DEATH BENEFIT DURING THE ACCUMULATION PHASE During the accumulation phase, a death benefit (and earnings multiplier benefit, if elected) is payable when either the contract owner, or the first of joint owners or the annuitant (when a contract owner is not an individual) dies. Assuming you are the contract owner, your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. We calculate the death benefit value as of the close of the business day on which we receive written notice and due proof of death, as well as any required paperwork, at our Customer Service Center ("claim date"). If your beneficiary wants to receive the death benefit on a date later than this, it may affect the amount of the benefit payable in the future. The proceeds may be received in a single sum, applied to any of the annuity options, or, if available, paid over the beneficiary's lifetime. (See "Systematic Withdrawals" above). A beneficiary's right to elect an annuity option or receive a lump-sum payment may have been restricted by the contract owner. If so, such rights or options will not be available to the beneficiary. If we do not receive a request to apply the death benefit proceeds to an annuity option, we will make a single sum distribution. We will generally pay death benefit proceeds within 7 days after our Customer Service Center has received sufficient information to make the payment. For information on required distributions under federal income tax laws, you should see "Required Distributions upon Contract Owner's Death." Your death benefit and mortality and expense risk charge depend on the category of contract owners to which you belong and on the death benefit that you choose. THE FOLLOWING DESCRIBES THE DEATH BENEFIT OPTIONS FOR CONTRACT OWNERS IN THE YR-2004 CATEGORY. FOR A DESCRIPTION OF THE DEATH BENEFITS APPLICABLE UNDER YOUR CONTRACT IF YOU ARE IN A DIFFERENT CATEGORY, PLEASE SEE THE APPLICABLE APPENDIX. PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. IF YOU ARE UNSURE OF WHICH CATEGORY APPLIES TO YOU, PLEASE CALL OUR CUSTOMER SERVICE CENTER. You may choose one of the following Death Benefits: (i) the Standard Death Benefit, (ii) the Quarterly Ratchet Enhanced Death Benefit or (iii) the Max 7 Enhanced Death Benefit. The Quarterly Ratchet Enhanced Death Benefit and the Max 7 Enhanced Death Benefit are available only if the contract owner or the annuitant (if the contract owner is not an individual) is not more than 79 years old at the time of purchase. The Enhanced Death Benefits are available only at the time you purchase your Contract. The Enhanced Death Benefits are not available where a Contract is owned by joint owners. If you do not choose a death benefit, your death benefit will be the Standard Death Benefit. ONCE YOU CHOOSE A DEATH BENEFIT, YOU CANNOT CHANGE IT. We may stop or suspend offering any of the Enhanced Death Benefit options to new Contracts. A change in ownership of the Contract may affect the amount of the death benefit and the Enhanced Death Benefit. The MGWB rider may also affect the death benefit. The death benefit may be subject to certain mandatory distribution rules required by federal tax law. We use the BASE DEATH BENEFIT to help determine the minimum death benefit payable under each of the death benefit options described below. You do not elect the Base Death Benefit. The Base Death Benefit is equal to the greater of: 1) the contract value; or 2) the cash surrender value. Landmark-###### 35 The STANDARD DEATH BENEFIT equals the GREATER of: 1) the Base Death Benefit; and 2) the Standard Minimum Guaranteed Death Benefit ("Standard MGDB") for amounts allocated to Covered Funds plus the contract value allocated to Excluded Funds. The Standard MGDB allocated to Covered Funds equals premiums allocated to Covered Funds less pro-rata adjustments for any withdrawals and transfers. The Standard MGDB allocated to Excluded Funds equals premiums allocated to Excluded Funds less pro-rata adjustments for any withdrawals and transfers. This calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the Standard MGDB on a pro-rata basis. The percentage reduction in the Standard MGDB for each Fund category (i.e. Covered or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall Standard MGDB. o Net transfers from Covered Funds to Excluded Funds will reduce the Standard MGDB in the Covered Funds on a pro-rata basis. The increase in the Standard MGDB allocated to Excluded Funds will equal the decrease in the Standard MGDB in Covered Funds. o Net transfers from Excluded Funds to Covered Funds will reduce the Standard MGDB in Excluded Funds on a pro-rata basis. The increase in the Standard MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the decrease in the Standard MGDB in Excluded Funds. ENHANCED DEATH BENEFIT OPTIONS. Under the Enhanced Death Benefit options, if you die before the annuity start date, your beneficiary will receive the greater of the Standard Death Benefit or the Enhanced Death Benefit option elected. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund or Excluded Fund on existing Contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Selecting a Special Fund or Excluded Fund may limit or reduce the Enhanced Death Benefit. For the period during which a portion of the contract value is allocated to a Special Fund or Excluded Fund, we may, at our discretion, reduce the mortality and expense risk charge attributable to that portion of the contract value. The reduced mortality and expense risk charge will be applicable only during that period. The QUARTERLY RATCHET ENHANCED DEATH BENEFIT equals the greater of: 1) the Standard Death Benefit; and 2) the Quarterly Ratchet Minimum Guaranteed Death Benefit ("Quarterly Ratchet MGDB") allocated to Covered Funds plus the contract value allocated to Excluded Funds. No funds are currently designated as Excluded Funds for purposes of the Quarterly Ratchet MGDB. The Quarterly Ratchet MGDB allocated to Covered Funds on the contract date equals the premium allocated to Covered Funds. On each quarterly anniversary (three months from the contract date and each three month anniversary of that date) that occurs on or prior to attainment of age 90, the Quarterly Ratchet MGDB in Covered Funds will be set to the greater of: 1) the current contract value in Covered Funds (after deductions occurring as of that date); or 2) the Quarterly Ratchet MGDB in Covered Funds from the prior quarterly anniversary (after deductions occurring on that date), adjusted for new premiums and partial withdrawals attributable to Covered Funds, and transfers. Landmark-###### 36 Other than on quarterly anniversaries, the Quarterly Ratchet MGDB in the Covered Funds is equal to the Quarterly Ratchet MGDB in the Covered Funds from the last quarterly anniversary, adjusted for new premiums and partial withdrawals attributable to Covered Funds, and transfers. The Quarterly Ratchet MGDB allocated to Excluded Funds on the contract date equals the premium allocated to Excluded Funds. The calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. On each quarterly anniversary that occurs on or prior to attainment of age 90, the Quarterly Ratchet MGDB in Excluded Funds will be set to the greater of: 1) the current contract value in Excluded Funds (after deductions occurring as of that date); or 2) the Quarterly Ratchet MGDB in the Excluded Funds from the prior quarterly anniversary (after deductions occurring on that date), adjusted for new premiums and partial withdrawals attributable to Excluded Funds, and transfers. Other than on quarterly anniversaries, the Quarterly Ratchet MGDB in the Excluded Funds is equal to the Quarterly Ratchet MGDB in the Excluded Funds from the last quarterly anniversary, adjusted for new premiums and partial withdrawals attributable to Excluded Funds, and transfers. Withdrawals reduce the Quarterly Ratchet MGDB on a pro-rata basis. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Net transfers from Covered Funds to Special or Excluded Funds will reduce the Quarterly Ratchet MGDB in Covered Funds on a pro-rata basis. The increase in the Quarterly Ratchet MGDB allocated to Special or Excluded Funds, as applicable, will equal the decrease in the Quarterly Ratchet MGDB in Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the Quarterly Ratchet MGDB in Excluded Funds on a pro-rata basis. The increase in the Quarterly Ratchet MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the reduction in the Quarterly Ratchet MGDB in Excluded Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the Quarterly Ratchet Enhanced Death Benefit and the 7% Solution Death Benefit Element. Each element of the Max 7 Enhanced Death Benefit is determined independently of the other at all times. The 7% SOLUTION DEATH BENEFIT ELEMENT is the greater of: 1) the Standard Death Benefit; and 2) the lesser of: a) 3 times all premium payments, adjusted for withdrawals (the "cap"); or b) the SUM OF the 7% Solution Minimum Guaranteed Death Benefit ("7% MGDB") allocated to Covered Funds, the 7% MGDB allocated to Special Funds, and the contract value allocated to Excluded Funds. For purposes of calculating the 7% Solution Death Benefit Element, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio, the ING Limited Maturity Bond Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division, and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. Landmark-###### 37 The 7% MGDB allocated to Covered Funds equals premiums allocated to Covered Funds, adjusted for withdrawals and transfers, accumulated at 7% until age 80 or the 7% MGDB reaches the cap. There is no accumulation once the cap is reached. Payment of additional premiums may cause the accumulation to resume, but there is no catch-up for any period where accumulation was suspended. The 7% MGDB allocated to Special Funds equals premiums allocated to Special Funds, adjusted for withdrawals and transfers. There is no accumulation of Minimum Guaranteed Death Benefit allocated to Special Funds. The 7% MGDB allocated to Excluded Funds is determined in the same way as the 7% MGDB for Covered Funds, but the calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the 7% MGDB on a pro-rata basis. The percentage reduction in the 7% MGDB for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The percentage reduction in the cap equals the percentage reduction in total contract value resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall 7% MGDB, but do affect the amount of the 7% MGDB in a particular Fund category. Net transfers from among the Funds will reduce the 7% MGDB in the Funds on a pro-rata basis. Note: In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. The enhanced death benefits may not be available in all states. EARNINGS MULTIPLIER BENEFIT RIDER. The earnings multiplier benefit rider is an optional rider that provides a separate death benefit in addition to the death benefit provided under the death benefit options described above. The rider is subject to state availability and is available only for issue ages 75 or under. You may add it at issue of the Contract or, if not yet available in your state, on the next contract anniversary following introduction of the rider in your state. The date on which the rider is added is referred to as the "rider effective date." If the rider is added at issue, the rider provides a benefit equal to a percentage of the gain under the Contract, up to a gain equal to 150% of premiums adjusted for withdrawals ("Maximum Base"). Currently, if added at issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: i) the Maximum Base; and ii) the contract value on the claim date minus premiums adjusted for withdrawals. If added after issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: i) 150% of the contract value on the rider effective date, plus subsequent premiums adjusted for subsequent withdrawals; and ii) the contract value on the claim date minus the contract value on the rider effective date, minus subsequent premiums adjusted for subsequent withdrawals. The adjustment to the benefit for withdrawals is pro-rata, meaning that the benefit will be reduced by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. There is an extra charge for the earnings multiplier benefit rider and once selected, it may not be revoked. The rider does not provide a benefit if there is no gain under the Contract. As such, the Company would continue to assess a charge for the rider, even though no benefit would be payable at death under the rider if there are no gains under the Contract. Please see "Charges and Fees -- Earnings Multiplier Benefit Charge" for a description of the charge. The rider is available for both non-qualified and qualified contracts. Please see the discussions of possible tax consequences in "Federal Tax Considerations," "Individual Retirement Annuities," "Taxation of Qualified Contracts," and "Tax Consequences of Enhanced Death Benefit," in this prospectus. Landmark-###### 38 DEATH BENEFIT DURING THE INCOME PHASE If any contract owner or the annuitant dies after the annuity start date, we will pay the beneficiary any certain benefit remaining under the annuity in effect at the time. CONTINUATION AFTER DEATH -- SPOUSE If at the contract owner's death, the surviving spouse of the deceased contract owner is the beneficiary and such surviving spouse elects to continue the Contract as his or her own, the following will apply: If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value on that date is greater than zero, we will add such difference to the contract value. We will allocate such addition to the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the addition to the Liquid Assets subaccount, or its successor. Such addition to contract value will not affect the guaranteed death benefit or any living benefit rider values. Any addition to contract value is available only to the spouse of the owner as of the date of death of the owner if such spouse under the provisions of the Contract elects to continue the Contract as his or her own. The death benefits under each of the available options will continue, based on the surviving spouse's age on the date that ownership changes. At subsequent surrender, we will waive any surrender charge applicable to premiums paid prior to the date we receive due proof of death of the contract owner. Any premiums paid later will be subject to any applicable surrender charge. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, we will add the benefit to the contract value and allocate the benefit among the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the benefit to the Liquid Assets subaccount, or its successor. The earnings multiplier benefit rider will continue, if the surviving spouse is eligible based on his or her attained age. If the surviving spouse is older than the maximum rider issue age, the rider will terminate. The Maximum Base and the percentages will be reset based on the adjusted contract value. The calculation of the benefit going forward will be: (i) based on the attained age of the spouse at the time of the ownership change using current values as of that date; (ii) computed as if the rider were added to the Contract after issue and after the increase; and (iii) based on the Maximum Base and percentages in effect on the original rider date. However, we may permit the surviving spouse to elect to use the then-current Maximum Base and percentages in the benefit calculation. CONTINUATION AFTER DEATH -- NOT A SPOUSE If the beneficiary or surviving joint owner is not the spouse of the owner, the Contract may continue in force subject to the required distribution rules of the Code. See next section, "Required Distributions Upon Contract Owner's Death." If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value also on that date, is greater than zero, we will add such difference to the contract value. Such addition will be allocated to the variable subaccounts in proportion to the contract value in the subaccounts, unless we are directed otherwise. If there is no contract value in any subaccount, the addition will be allocated to the Liquid Assets subaccount, or its successor. The death benefit will then terminate. At subsequent surrender, any surrender charge applicable to premiums paid prior to the date we receive due proof of death of the contract owner will be waived. No additional premium payments may be made. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, we will add the benefit to the contract value and allocate the benefit among the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the benefit to the Liquid Assets subaccount, or its successor. Landmark-###### 39 The earnings multiplier benefit rider then terminates, whether or not a benefit was payable under the terms of the rider. REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH We will not allow any payment of benefits provided under a non-qualified Contract which do not satisfy the requirements of Section 72(s) of the Code. If any contract owner of a non-qualified Contract dies before the annuity start date, we will distribute the death benefit payable to the beneficiary as follows: (a) the death benefit must be completely distributed within 5 years of the contract owner's date of death; or (b) the beneficiary may elect, within the 1-year period after the contract owner's date of death, to receive the death benefit in the form of an annuity from us, provided that (i) such annuity is distributed in substantially equal installments over the life of such beneficiary or over a period not extending beyond the life expectancy of such beneficiary; and (ii) such distributions begin not later than 1 year after the contract owner's date of death. Notwithstanding (a) and (b) above, if the sole contract owner's beneficiary is the deceased owner's surviving spouse, then such spouse may elect to continue the Contract under the same terms as before the contract owner's death. Upon receipt of such election from the spouse at our Customer Service Center: (i) all rights of the spouse as contract owner's beneficiary under the Contract in effect prior to such election will cease; (ii) the spouse will become the owner of the Contract and will also be treated as the contingent annuitant, if none has been named and only if the deceased owner was the annuitant; and (iii) all rights and privileges granted by the Contract or allowed by us will belong to the spouse as contract owner of the Contract. We deem the spouse to have made this election if such spouse makes a premium payment to the Contract or fails to make a timely election as described in this paragraph. If the owner's beneficiary is not a spouse, the distribution provisions described in subparagraphs (a) and (b) above, will apply even if the annuitant and/or contingent annuitant are alive at the time of the contract owner's death. Subject to availability, and our then current rules, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the life expectancy of the beneficiary ("stretch"). "Stretch" payments will be subject to the same limitations as systematic withdrawals, and non-qualified "stretch" payments will be reported on the same basis as other systematic withdrawals. If we do not receive an election from an owner's beneficiary who is not a spouse within the 1-year period after the contract owner's date of death, then we will pay the death benefit to the owner's beneficiary in a cash payment within five years from the date of death. We will determine the death benefit as of the date we receive proof of death. Such cash payment will be in full settlement of all our liability under the Contract. If a contract owner dies after the annuity start date, all of the contract owner's rights granted under the Contract or allowed by us will pass to the contract owner's beneficiary. If a Contract has joint owners we will consider the date of death of the first joint owner as the death of the contract owner, and the surviving joint owner will become the beneficiary of the Contract. If any contract owner is not an individual, the death of an annuitant shall be treated as the death of a contract owner. - -------------------------------------------------------------------------------- THE ANNUITY OPTIONS - -------------------------------------------------------------------------------- ANNUITIZATION OF YOUR CONTRACT If the annuitant and contract owner are living on the annuity start date, we will begin making payments to the contract owner under an income plan. We will make these payments under the annuity option you chose. You may change an annuity option by making a written request to us at least 30 days before the annuity start date. The amount of the payments will be determined by applying your contract value, adjusted for any applicable Market Value Adjustment, on the annuity start date in accordance with the annuity option you chose. You may also elect an annuity option on surrender of the Contract for its cash surrender value or you may choose one or more annuity options for the payment of death benefit proceeds while it is in effect and before the annuity start date. If, at the time of the contract owner's death or the annuitant's death (if the contract owner is not an individual), no option has been chosen for paying death benefit proceeds, the beneficiary may choose an annuity option within 60 days. In all events, payments of death benefit proceeds must comply with the distribution requirements of applicable federal tax law. The minimum monthly annuity income payment that we will make is $20. We may require that a single sum payment be made if the contract value is less than $2,000 or if the calculated monthly annuity income payment is less than $20. For each annuity option we will issue a separate written agreement putting the annuity option into effect. Before we pay any annuity benefits, we require the return of your Contract. If your Contract has been lost, we will require that you complete and return the applicable lost Contract form. Various factors will affect the level of annuity benefits, such as the annuity option chosen, the applicable payment rate used and the investment performance of the portfolios and interest credited to the Fixed Interest Allocations. Our current annuity options provide only for fixed payments. Fixed annuity payments are regular payments, the amount of which is fixed and guaranteed by us. Some fixed annuity options provide fixed payments either for a specified period of time or for the life of the annuitant. The amount of life income payments will depend on the form and duration of payments you chose, the age of the annuitant or beneficiary (and gender, where appropriate under applicable law), the total contract value applied to periodic income payments, and the applicable payment rate. Our approval is needed for any option where: 1) The person named to receive payment is other than the contract owner or beneficiary; 2) The person named is not a natural person, such as a corporation; or 3) Any income payment would be less than the minimum annuity income payment allowed. SELECTING THE ANNUITY START DATE You select the annuity start date, which is the date on which the annuity payments commence. The annuity start date must be at least 5 years from the contract date but before the month immediately following the annuitant's 90th birthday, or 10 years from the contract date, if later. If, on the annuity start date, a surrender charge remains, the elected annuity option must include a period certain of at least 5 years. If you do not select an annuity start date, it will automatically begin in the month following the annuitant's 90th birthday, or 10 years from the contract date, if later. If the annuity start date occurs when the annuitant is at an advanced age, such as over age 85, it is possible that the Contract will not be considered an annuity for federal tax purposes. For more information, see "Federal Tax Considerations" and the SAI. For a Contract purchased in connection with a qualified plan, other than a Roth IRA, distributions must commence not later than April 1st of the calendar year following the calendar year in which you reach age 70 1/2 or, in some cases, retire. Distributions may be made through annuitization or withdrawals. You should consult a tax adviser for tax advice before investing. FREQUENCY OF ANNUITY PAYMENTS You choose the frequency of the annuity payments. They may be monthly, quarterly, semi-annually or annually. If we do not receive written notice from you, we will make the payments monthly. There may be certain restrictions on minimum payments that we will allow. Landmark-###### 41 BENEFICIARY RIGHTS A beneficiary's right to elect an annuity option or receive a lump sum may have been restricted by the contract owner. If so, such options will not be available to the beneficiary. THE ANNUITY OPTIONS We offer the 4 annuity options shown below. Payments under Options 1, 2 and 3 are fixed. Payments under Option 4 may be fixed or variable, although only fixed payments are currently available. For a fixed annuity option, the contract value in the subaccounts is transferred to the Company's general account. OPTION 1. INCOME FOR A FIXED PERIOD. Under this option, we make monthly payments in equal installments for a fixed number of years based on the contract value on the annuity start date. We guarantee that each monthly payment will be at least the amount stated in your Contract. If you prefer, you may request that payments be made in annual, semi-annual or quarterly installments. We will provide you with illustrations if you ask for them. If the cash surrender value or contract value is applied under this option, a 10% penalty tax may apply to the taxable portion of each income payment until the contract owner reaches age 59 1/2. OPTION 2. INCOME FOR LIFE WITH A PERIOD CERTAIN. Under this option, we make payments for the life of the annuitant in equal monthly installments and guarantee the income for at least a period certain, such as 10 or 20 years. Other periods certain may be available to you on request. You may choose a refund period instead. Under this arrangement, income is guaranteed until payments equal the amount of your Contract. If the person named lives beyond the guaranteed period, we will continue payments until his or her death. We guarantee that each payment will be at least the amount specified in the Contract corresponding to the person's age on his or her last birthday before the annuity start date. Amounts for ages not shown in the Contract are available if you ask for them. OPTION 3. JOINT LIFE INCOME. This option is available when there are 2 persons named to determine annuity payments. At least one of the persons named must be either the contract owner or beneficiary of the Contract. We guarantee monthly payments will be made as long as at least one of the named persons is living. There is no minimum number of payments. Monthly payment amounts are available if you ask for them. OPTION 4. ANNUITY PLAN. Under this option, your contract value can be applied to any other annuitization plan that we choose to offer on the annuity start date. Annuity payments under Option 4 may be fixed or variable. If variable and subject to the 1940 Act, it will comply with the requirements of such Act. PAYMENT WHEN NAMED PERSON DIES When the person named to receive payment dies, we will pay any amounts still due as provided in the annuity agreement between you and ING USA. The amounts we will pay are determined as follows: 1) For Option 1, or any remaining guaranteed payments under Option 2, we will continue payments. Under Options 1 and 2, the discounted values of the remaining guaranteed payments may be paid in a single sum. This means we deduct the amount of the interest each remaining guaranteed payment would have earned had it not been paid out early. We will base the discount interest rate on the interest rate used to calculate the payments for Options 1 and 2. 2) For Option 3, no amounts are payable after both named persons have died. 3) For Option 4, the annuity option agreement will state the amount we will pay, if any. Landmark-###### 42 - -------------------------------------------------------------------------------- OTHER CONTRACT PROVISIONS - -------------------------------------------------------------------------------- REPORTS TO CONTRACT OWNERS We will send you a quarterly report within 31 days after the end of each calendar quarter. The report will show the contract value, cash surrender value, and the death benefit as of the end of the calendar quarter. The report will also show the allocation of your contract value and reflects the amounts deducted from or added to the contract value since the last report. You have 30 days to notify our Customer Service Center of any errors or discrepancies contained in the report and in any confirmation notice. We will also send you copies of any shareholder reports of the investment portfolios in which Separate Account B invests, as well as any other reports, notices or documents we are required by law to furnish to you. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (i) when the New York Stock Exchange is closed; (ii) when trading on the New York Stock Exchange is restricted; (iii) when an emergency exists as determined by the SEC so that the sale of securities held in Separate Account B may not reasonably occur or so that the Company may not reasonably determine the value of Separate Account B's net assets; or (iv) during any other period when the SEC so permits for the protection of security holders. We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. IN CASE OF ERRORS IN YOUR APPLICATION If an age or gender given in the application or enrollment form is misstated, the amounts payable or benefits provided by the Contract shall be those that the premium payment would have bought had the age or gender not been misstated. ASSIGNING THE CONTRACT AS COLLATERAL You may assign a non-qualified Contract as collateral security for a loan but you should understand that your rights and any beneficiary's rights may be subject to the terms of the assignment. An assignment likely has federal tax consequences. You should consult a tax adviser for tax advice. You must give us satisfactory written notice at our Customer Service Center in order to make or release an assignment. We are not responsible for the validity of any assignment. CONTRACT CHANGES -- APPLICABLE TAX LAW We have the right to make changes in the Contract to continue to qualify the Contract as an annuity under applicable federal tax law. We will give you advance notice of such changes. FREE LOOK You may cancel your Contract within your 10-day free look period. We deem the free look period to expire 15 days after we mail the Contract to you. Some states may require a longer free look period. To cancel, you need to send your Contract to our Customer Service Center or to the agent from whom you purchased it. We will refund the contract value. For purposes of the refund during the free look period, (i) we adjust your contract value for any market value adjustment (if you have invested in the Fixed Account), and (ii) then we include a refund of any charges deducted from your contract value. Because of the market risks associated with investing in the portfolios and the potential positive or negative effect of the market value adjustment, the contract value returned may be greater or less than the premium payment you paid. Some states require us to return to you the amount of the paid premium (rather than the contract value) in which case you will not be subject to investment risk during the free look period. In these states, your premiums designated for investment in the subaccounts may be allocated during the free look period to a subaccount specially designated by the Company for this purpose (currently, the Liquid Assets subaccount). We may, in our discretion, require that premiums designated for investment in the subaccounts from all other states as well as premiums designated for a Fixed Interest Allocation be allocated to the specially designated subaccount during the free look period. Your Contract is void as of Landmark-###### 42 the day we receive your Contract and cancellation request in good order. We determine your contract value at the close of business on the day we void your Contract. If you keep your Contract after the free look period and the investment is allocated to a subaccount specially designated by the Company, we will put your money in the subaccount(s) chosen by you, based on the accumulation unit value next computed for each subaccount, and/or in the Fixed Interest Allocation chosen by you. SPECIAL ARRANGEMENTS We may reduce or waive any Contract, rider, or benefit fees or charges for certain group or sponsored arrangements, under special programs, and for certain employees, agents, and related persons of our parent corporation and its affiliates. We reduce or waive these items based on expected economies, and the variations are based on differences in costs or services. SELLING THE CONTRACT Our affiliate Directed Services, Inc. ("DSI"), 1475 Dunwoody Dr., West Chester, PA 19380 is the principal underwriter and distributor of the Contract as well as for other ING USA contracts. DSI, a New York corporation, is registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and is a member of the National Association of Securities Dealers, Inc. ("NASD"). DSI does not retain any commissions or compensation paid to it by ING USA for Contract sales. DSI enters into selling agreements with affiliated and unaffiliated broker/dealers to sell the Contracts through their registered representatives who are licensed to sell securities and variable insurance products. Selling firms are also registered with the SEC and are NASD member firms. DSI pays selling firms for Contract sales according to one or more schedules. This compensation is generally based on a percentage of premium payments. Selling firms may receive commissions of up to 7.0% of premium payments. In addition, selling firms may receive ongoing annual compensation of up to 1.25% of all, or a portion, of values of Contracts sold through the firm. Individual representatives may receive all or a portion of compensation paid to their selling firm, depending on the firm's practices. Commissions and annual compensation, when combined, could exceed 7.0% of total premium payments. DSI may also compensate wholesalers/distributors, and their sales management personnel, for Contract sales within the wholesale/distribution channel. This compensation may be based on a percentage of premium payments, and/or a percentage of Contract values. Affiliated selling firms may include Aeltus Capital, Inc., BancWest Investment Services, Inc., Baring Investment Services, Inc., Compulife Investor Services, Inc., Financial Network Investment Corporation, Financial Northeastern Corporation, Granite Investment Services, Inc. Guaranty Brokerage Services, Inc., IFG Network Securities, Inc., ING America Equities, Inc., ING Barings Corp., ING Brokers Network, LLC, ING Direct Funds Limited, ING DIRECT Securities, Inc., ING Financial Advisers, LLC, ING Furman Selz Financial Services LLC, ING Funds Distributor, LLC, ING TT&S (U.S.) Securities, Inc., Investors Financial Group, LLC, Locust Street Securities, Inc., Multi-Financial Securities Corporation, PrimeVest Financial Services, Inc., Systematized Benefits Administrators, Inc., United Variable Services, Inc., VESTAX Securities Corporation, and Washington Square Securities, Inc. We may also make additional payments to broker/dealers for marketing and educational expenses and to reimburse certain expenses of registered representatives relating to sales of Contracts. We do not pay any additional compensation on the sale or exercise of any of the Contract's optional benefit riders offered in this prospectus. Landmark-###### 44 - -------------------------------------------------------------------------------- OTHER INFORMATION - -------------------------------------------------------------------------------- VOTING RIGHTS We will vote the shares of a Trust owned by Separate Account B according to your instructions. However, if the 1940 Act or any related regulations should change, or if interpretations of it or related regulations should change, and we decide that we are permitted to vote the shares of a Trust in our own right, we may decide to do so. We determine the number of shares that you have in a subaccount by dividing the Contract's contract value in that subaccount by the net asset value of one share of the portfolio in which a subaccount invests. We count fractional votes. We will determine the number of shares you can instruct us to vote 180 days or less before a Trust shareholder meeting. We will ask you for voting instructions by mail at least 10 days before the meeting. If we do not receive your instructions in time, we will vote the shares in the same proportion as the instructions received from all Contracts in that subaccount. We will also vote shares we hold in Separate Account B which are not attributable to contract owners in the same proportion. STATE REGULATION We are regulated by the Insurance Department of the State of Iowa. We are also subject to the insurance laws and regulations of all jurisdictions where we do business. The Contract offered by this prospectus has been approved where required by those jurisdictions. We are required to submit annual statements of our operations, including financial statements, to the Insurance Departments of the various jurisdictions in which we do business to determine solvency and compliance with state insurance laws and regulations. LEGAL PROCEEDINGS We are not aware of any pending legal proceedings which involve Separate Account B as a party. We are, or may be in the future, a defendant in various legal proceedings in connection with the normal conduct of our insurance operations. Some of these cases may seek class action status and may include a demand for punitive damages as well as for compensatory damages. In the opinion of management, the ultimate resolution of any existing legal proceeding is not likely to have a material adverse effect on our ability to meet our obligations under the contract. Directed Services, Inc., the principal underwriter and distributor of the contract, is not involved in any legal proceeding which, in the opinion of management, is likely to have a material adverse effect on its ability to distribute the contract. LEGAL MATTERS The legal validity of the Contracts was passed on by Kimberly J. Smith, Assistant Secretary of ING USA. EXPERTS The audited consolidated financial statements and schedules of Golden American as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002, and the unaudited financial statements of Golden American for the quarter ended September 30, 2003, and the unaudited statement of assets and liabilities of Separate Account B for the quarter ended September 30, 2003 and the statement of assets and liabilities of Separate Account B as of December 31, 2002 and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended, appearing in the SAI and Registration Statement have been audited by Ernst & Young LLP, independent auditors, as set forth in their reports thereon appearing in the SAI and in the Registration Statement, and are included in reliance on such reports given on the authority of such firm as experts in accounting and auditing. Landmark-###### 45 - -------------------------------------------------------------------------------- FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- The following summary provides a general description of the federal income tax considerations associated with this Contract and does not purport to be complete or to cover all tax situations. This discussion is not intended as tax advice. You should consult your counsel or other competent tax advisers for more complete information. This discussion is based upon our understanding of the present federal income tax laws. We do not make any representations as to the likelihood of continuation of the present federal income tax laws or as to how they may be interpreted by the IRS. This summary references enhanced death benefits and earnings multiplier benefits that may not be available under your Contract. Please see your Contract, and "The Annuity Contract -- Optional Riders" and "Death Benefit Choices" in this prospectus. TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED The Contract may be purchased on a non-tax-qualified basis or purchased on a tax-qualified basis. Qualified Contracts are designed for use by individuals whose premium payments are comprised solely of proceeds from and/or contributions under retirement plans that are intended to qualify as plans entitled to special income tax treatment under Sections 401(a), 403(b), 408, or 408A of the Code. The ultimate effect of federal income taxes on the amounts held under a Contract, or annuity payments, depends on the type of retirement plan, on the tax and employment status of the individual concerned, and on our tax status. In addition, certain requirements must be satisfied in purchasing a qualified Contract with proceeds from a tax-qualified plan and receiving distributions from a qualified Contract in order to continue receiving favorable tax treatment. Some retirement plans are subject to distribution and other requirements that are not incorporated into our Contract administration procedures. Contract owners, participants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contract comply with applicable law. Therefore, you should seek competent legal and tax advice regarding the suitability of a Contract for your particular situation. The following discussion assumes that qualified Contracts are purchased with proceeds from and/or contributions under retirement plans that qualify for the intended special federal income tax treatment. TAX STATUS OF THE CONTRACTS DIVERSIFICATION REQUIREMENTS. The Code requires that the investments of a variable account be "adequately diversified" in order for non-qualified Contracts to be treated as annuity contracts for federal income tax purposes. It is intended that Separate Account B, through the subaccounts, will satisfy these diversification requirements. INVESTOR CONTROL. In certain circumstances, owners of variable annuity contracts have been considered for federal income tax purposes to be the owners of the assets of the separate account supporting their contracts due to their ability to exercise investment control over those assets. When this is the case, the contract owners have been currently taxed on income and gains attributable to the separate account assets. There is little guidance in this area, and some features of the Contracts, such as the flexibility of a contract owner to allocate premium payments and transfer contract values, have not been explicitly addressed in published rulings. It is possible that these Contract features may exceed the limits imposed by the tax law. If so, you would be treated as the owner of the Separate Account B assets that underlie your Contract and thus subject to current taxation on the income and gains from those assets. While we believe that the Contracts do not give contract owners investment control over Separate Account B assets, we reserve the right to modify the Contracts as necessary to prevent a contract owner from being treated as the owner of the Separate Account B assets supporting the Contract. REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for federal income tax purposes, the Code requires any non-qualified Contract to contain certain provisions specifying how your interest in the Contract will be distributed in the event of your death. The non-qualified Contracts contain provisions that are intended to comply with these Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements Landmark-###### 46 are clarified by regulation or otherwise. See "Death Benefit Choices" for additional information on required distributions from non-qualified contracts. Qualified Contracts are subject to special rules -- see below. The following discussion assumes that the Contracts will qualify as annuity contracts for federal income tax purposes. IN GENERAL. We believe that if you are a natural person you will generally not be taxed on increases in the value of a Contract until a distribution occurs or until annuity payments begin. For these purposes, the agreement to assign or pledge any portion of the contract value, and, in the case of a qualified Contract, any portion of an interest in the qualified plan, generally will be treated as a distribution. TAXATION OF NON-QUALIFIED CONTRACTS NON-NATURAL PERSON. The owner of any annuity contract who is not a natural person generally must include in income any increase in the excess of the contract value over the "investment in the contract" (generally, the premiums or other consideration you paid for the contract less any nontaxable withdrawals) during the taxable year. There are some exceptions to this rule and a prospective contract owner that is not a natural person may wish to discuss these with a tax adviser. The following discussion generally applies to Contracts owned by natural persons. DELAYED ANNUITY STARTING DATE. If the Contract's annuity starting date occurs (or is scheduled to occur) at a time when the annuitant has reached an advanced age (e.g., age 85), it is possible that the Contract would not be treated as an annuity for federal income tax purposes. In that event, the income and gains under the Contract could be currently includible in your income. WITHDRAWALS. When a withdrawal from a non-qualified Contract occurs (including amounts paid to you under the MGWB rider), the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the contract value (unreduced by the amount of any surrender charge) immediately before the distribution over the contract owner's investment in the Contract at that time. The contract value that applies for this purpose is unclear in some respects. For example, the living benefits provided under the Contract, i.e., the MGAB, MGWB and MGIB, as well as the market value adjustment could increase the contract value that applies. Thus, the income on the Contracts could be higher than the amount of income that would be determined without regard to such benefits. As a result, you could have higher amounts of income than will be reported to you. In the case of a surrender under a non-qualified Contract, the amount received generally will be taxable only to the extent it exceeds the contract owner's investment in the Contract. The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. Certain charges are imposed with respect to the death benefit. It is possible that these charges (or some portion thereof) could be treated for federal tax purposes as a distribution from the Contract. PENALTY TAX ON CERTAIN WITHDRAWALS. A distribution from a non-qualified Contract may be subject to a federal tax penalty equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: o made on or after the taxpayer reaches age 59 1/2; o made on or after the death of a contract owner; o attributable to the taxpayer's becoming disabled; or o made as part of a series of substantially equal periodic payments for the life (or life expectancy) of the taxpayer. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. A tax adviser should be consulted with regard to exceptions from the penalty tax. Landmark-###### 47 ANNUITY PAYMENTS. Although tax consequences may vary depending on the payment option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of an annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the Contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the Contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. The tax treatment of partial annuitizations is unclear. We currently treat any partial annuitizations, such as those associated with the MGIB benefit, as withdrawals rather than as annuity payments. Please consult your tax adviser before electing a partial annuitization. TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed from a Contract because of your death or the death of the annuitant. Generally, such amounts are includible in the income of recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract, or (ii) if distributed under a payment option, they are taxed in the same way as annuity payments. Special rules may apply to amounts distributed after a Beneficiary has elected to maintain Contract value and receive payments. TRANSFERS, ASSIGNMENTS AND EXCHANGES. A transfer or assignment of ownership of a Contract, the designation of an annuitant or payee other than an owner, or the exchange of a Contract may result in certain tax consequences to you that are not discussed herein. A contract owner contemplating any such transfer, assignment, designation or exchange, should consult a tax adviser as to the tax consequences. MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts that are issued by us (or our affiliates) to the same contract owner during any calendar year are treated as one non-qualified deferred annuity contract for purposes of determining the amount includible in such contract owner's income when a taxable distribution occurs. TAXATION OF QUALIFIED CONTRACTS The Contracts are designed for use with several types of qualified plans. The tax rules applicable to participants in these qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from: contributions in excess of specified limits; distributions before age 59 1/2 (subject to certain exceptions); distributions that do not conform to specified commencement and minimum distribution rules; and in other specified circumstances. Therefore, no attempt is made to provide more than general information about the use of the Contracts with the various types of qualified retirement plans. Contract owners, annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under these qualified retirement plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the Contract, but we shall not be bound by the terms and conditions of such plans to the extent such terms contradict the Contract, unless the Company consents. For qualified plans under Section 401(a) and 403(b), the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the plan participant for whose benefit the contract is purchased (i) reaches age 70 1/2 or (ii) retires, and must be made in a specified form or manner. If the plan participant is a "5 percent owner" (as defined in the Code), distributions generally must begin no later than April 1 of the calendar year following the calendar year in which the plan participant reaches age 70 1/2. For IRAs described in Section 408, distributions generally must commence no later than by April 1 of the calendar year following the calendar year in which the individual contract owner reaches age 70 1/2. Roth IRAs under Section 408A do not require distributions at any time before the contract owner's death. PLEASE NOTE THAT REQUIRED MINIMUM DISTRIBUTIONS UNDER QUALIFIED CONTRACTS MAY BE SUBJECT TO SURRENDER CHARGE AND/OR MARKET VALUE ADJUSTMENT, IN ACCORDANCE WITH THE TERMS OF THE CONTRACT. THIS COULD AFFECT THE AMOUNT THAT MUST BE TAKEN FROM THE CONTRACT IN ORDER TO SATISFY REQUIRED MINIMUM DISTRIBUTIONS. Landmark-###### 48 DIRECT ROLLOVERS. If the Contract is used in connection with a pension, profit-sharing, or annuity plan qualified under sections 401(a) or 403(a) of the Code, or is a tax-sheltered annuity under section 403(b) of the Code, or is used with an eligible deferred compensation plan that has a government sponsor and that is qualified under section 457(b), any "eligible rollover distribution" from the Contract will be subject to direct rollover and mandatory withholding requirements. An eligible rollover distribution generally is any taxable distribution from a qualified pension plan under section 401(a) of the Code, qualified annuity plan under section 403(a) of the Code, section 403(b) annuity or custodial account, or an eligible section 457(b) deferred compensation plan that has a government sponsor, excluding certain amounts (such as minimum distributions required under section 401(a)(9) of the Code, distributions which are part of a "series of substantially equal periodic payments" made for life or a specified period of 10 years or more, or hardship distributions as defined in the tax law). Under these requirements, federal income tax equal to 20% of the eligible rollover distribution will be withheld from the amount of the distribution. Unlike withholding on certain other amounts distributed from the Contract, discussed below, you cannot elect out of withholding with respect to an eligible rollover distribution. However, this 20% withholding will not apply if, instead of receiving the eligible rollover distribution, you elect to have it directly transferred to certain qualified plans. Prior to receiving an eligible rollover distribution, you will receive a notice (from the plan administrator or us) explaining generally the direct rollover and mandatory withholding requirements and how to avoid the 20% withholding by electing a direct rollover. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS. Section 401(a) of the Code permits corporate employers to establish various types of retirement plans for employees, and permits self-employed individuals to establish these plans for themselves and their employees. These retirement plans may permit the purchase of the Contracts to accumulate retirement savings under the plans. Adverse tax or other legal consequences to the plan, to the participant, or to both may result if this Contract is assigned or transferred to any individual as a means to provide benefit payments, unless the plan complies with all legal requirements applicable to such benefits before transfer of the Contract. Employers intending to use the Contract with such plans should seek competent advice. INDIVIDUAL RETIREMENT ANNUITIES. Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an "Individual Retirement Annuity" or "IRA." These IRAs are subject to limits on the amount that can be contributed, the deductible amount of the contribution, the persons who may be eligible, and the time when distributions commence. Also, distributions from certain other types of qualified retirement plans may be "rolled over" on a tax-deferred basis into an IRA. Also, amounts in another IRA or individual retirement account can be rolled over or transferred tax-free to an IRA. There are significant restrictions on rollover or transfer contributions from Savings Incentive Match Plans for Employees (SIMPLE), under which certain employers may provide contributions to IRAs on behalf of their employees, subject to special restrictions. Employers may establish Simplified Employee Pension (SEP) Plans to provide IRA contributions on behalf of their employees. If you make a tax-free rollover of a distribution from any of these IRAs, you may not make another tax-free rollover from the IRA within a 1-year period. Sales of the Contract for use with IRAs may be subject to special requirements of the IRS. DISTRIBUTIONS -- IRAS. All distributions from a traditional IRA are taxed as received unless either one of the following is true: o The distribution is rolled over to a plan eligible to receive rollovers or to another traditional IRA or certain qualified plans in accordance with the Tax Code; or o You made after-tax contributions to the IRA. In this case, the distribution will be taxed according to rules detailed in the Tax Code. To avoid certain tax penalties, you and any designated beneficiary must also meet the minimum distribution requirements imposed by the Tax Code. The requirements do not apply to Roth IRA contracts while the owner is living. These rules may dictate one or more of the following: Landmark-###### 49 o Start date for distributions; o The time period in which all amounts in your account(s) must be distributed; or o Distribution amounts. Generally, you must begin receiving distributions from a traditional IRA by April 1 of the calendar year following the calendar year in which you attain age 70 1/2. We must pay out distributions from the contract over one of the following time periods: o Over your life or the joint lives of you and your designated beneficiary; or o Over a period not greater than your life expectancy or the joint life expectancies of you and your designated beneficiary. The amount of each periodic distribution must be calculated in accordance with IRS regulations. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax is imposed on the required amount that was not distributed. The following applies to the distribution of death proceeds under 408(b) and 408A (Roth IRA - See below) plans. Different distribution requirements apply after your death. If your death occurs after you begin receiving minimum distributions under the contract, distributions must be made at least as rapidly as under the method in effect at the time of your death. Code section 401(a)(9) provides specific rules for calculating the minimum required distributions at your death. The death benefit under the contract and also certain other contract benefits, such as living benefits, may affect the amount of the required minimum distribution that must be taken. If your death occurs before you begin receiving minimum distributions under the contract, your entire balance must be distributed by December 31 of the calendar year containing the fifth anniversary of the date of your death. For example, if you die on September 1, 2002, your entire balance must be distributed to the designated beneficiary by December 31, 2007. However, if the distributions begin by December 31 of the calendar year following the calendar year of your death, and you have named a designated beneficiary, then payments may be made over either of the following time-frames: o Over the life of the designated beneficiary; or o Over a period not extending beyond the life expectancy of the designated beneficiary. If the designated beneficiary is your spouse, distributions must begin on or before the later of the following: o December 31 of the calendar year following the calendar year of your death; or o December 31 of the calendar year in which you would have attained age 70 1/2. In lieu of taking a distribution under these rules, a spouse who is the sole beneficiary may elect to treat the account as his or her own IRA. In such case, the surviving spouse will be able to make contributions to the account, make rollovers from the account, and defer taking a distribution until his or her age 70 1/2. The surviving spouse is deemed to have made such an election if the surviving spouse makes a rollover to or from the account, makes additional contributions to the account, or fails to take a distribution within the required time period. ROTH IRA. Section 408A of the Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to a Roth IRA, which are subject to limits on the amount of the contributions and the persons who may be eligible to contribute, are not deductible, and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. Certain qualifying individuals may convert an IRA, SEP, or SIMPLE IRA, to a Roth IRA. Such rollovers and conversions are subject to tax, and other special rules may apply. If you make a tax-free rollover of a distribution from a Roth IRA to another Roth IRA, you may not make another tax-free rollover from the Roth IRA from which the rollover was made within a 1- Landmark-###### 50 year period. A 10% penalty may apply to amounts attributable to a conversion to a Roth IRA if the amounts are distributed during the five taxable years beginning with the year in which the conversion was made. DISTRIBUTIONS -- ROTH IRAS. A qualified distribution from a Roth IRA is not taxed when it is received. A qualified distribution is a distribution: o Made after the five-taxable year period beginning with the first taxable year for which a contribution was made to a Roth IRA of the owner; and o Made after you attain age 59 1/2, die, become disabled as defined in the Tax Code, or for a qualified first-time home purchase. If a distribution is not qualified, it will be taxable to the extent of the accumulated earnings. Under special ordering rules, a partial distribution will first be treated generally as a return of contributions which is not taxable and then as taxable accumulated earnings. TAX SHELTERED ANNUITIES. Section 403(b) of the Code allows employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a Contract that will provide an annuity for the employee's retirement. These premium payments may be subject to FICA (Social Security) tax. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the last year beginning before January 1, 1989, are not allowed prior to age 59 1/2, severance from employment, death or disability. Distributions allocable to salary reduction contributions, but not earnings on such contributions, may also be distributed upon hardship. Certain penalties may apply. TSAS -- LOANS. Loans may be available if you purchased your contract in connection with a non-ERISA plan qualified under Section 403(b) of the Code ("TSA"). We do not currently permit loans under Section 403(b) Contracts that are subject to ERISA. If your contract was issued in connection with a TSA and the terms of your plan permit, you may take a loan from us, using your surrender value as collateral for the loan. Loans are subject to the terms of the Contract, your 403(b) plan, and the Code. The amount and number of loans outstanding at any one time under your TSA are limited, whether under our contracts or those of other carriers. We may modify the terms of a loan to comply with changes in applicable law. Various mandatory repayment requirements apply to loans, and failure to repay generally would result in income to you and the potential application of tax penalties. We urge you to consult with a qualified tax advisor prior to effecting a loan transaction under your Contract. We may apply additional restrictions or limitations on loans, and you must make loan requests in accordance with our administrative practices and loan request procedures in effect at the time you submit your request. Read the terms of the loan agreement before submitting any request. Any outstanding loan balance impacts the following: 1) Withdrawals and Charges: We determine amounts available for maximum withdrawal amounts, free partial withdrawals, systematic withdrawals and waiver of administrative charges by reducing the otherwise applicable amounts by the amount of any outstanding loan balance. 2) Death Benefits, Annuitization and Surrenders: We deduct the outstanding loan balance from any amounts otherwise payable and in determining the amount available for annuitization. 3) Riders: a) Minimum Guaranteed Income Benefit ("MGIB") Rider. If you exercise the MGIB rider, we reduce the MGIB Base by an amount equal to the ratio of the outstanding loan balance to the contract value multiplied by the MGIB Base. Landmark-###### 51 b) Minimum Guaranteed Withdrawal Benefit ("MGWB") Rider. The portion of the contract value used to pay off the outstanding loan balance will reduce the MGWB Withdrawal Account. We do not recommend the MGWB rider if loans are contemplated. c) Minimum Guaranteed Accumulation Benefit ("MGAB") Rider. Generally, loan repayment periods should not extend into the 3-year period preceding the end of the Waiting Period, because transfers made within such 3-year period reduce the MGAB Base and the MGAB Charge Base pro-rata based on the percentage of contract value transferred. Transfers between the TSA Special Fixed Account and the variable accounts will not be excluded from this treatment. TSAS -- DISTRIBUTIONS. All distributions from Section 403(b) plans are taxed as received unless either of the following are true: o The distribution is rolled over to another plan eligible to receive rollovers or to a traditional individual retirement annuity/account (IRA) in accordance with the Tax Code; or o You made after-tax contributions to the plan. In this case, the amount will be taxed according to rules detailed in the Tax Code. Generally, you must begin receiving distributions by April 1 of the calendar year following the calendar year in which you attain age 70 1/2 or retire, whichever occurs later, unless you had amounts under the contract as of December 31, 1986. In this case, distribution of these amounts generally must begin by the end of the calendar year in which you attain age 75 or retire, if later. The death benefit under the contract and also certain other contract benefits, such as the living benefits, may affect the amount of the required minimum distribution that must be taken. If you take any distributions in excess of the minimum required amount, then special rules require that some or all of the December 31, 1986 balance be distributed earlier. TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. It is possible that the IRS could characterize such a death benefit as an incidental death benefit. There are limitations on the amount of incidental benefits that may be provided under pension and profit sharing plans. In addition, the provision of such benefits may result in currently taxable income to participants. Also, as stated above, the presence of the death benefit, as well as certain other contract benefits, could affect the amount of required minimum distributions. OTHER TAX CONSEQUENCES As noted above, the foregoing comments about the federal tax consequences under the Contracts are not exhaustive, and special rules are provided with respect to other tax situations not discussed in this prospectus. Further, the federal income tax consequences discussed herein reflect our understanding of current law, and the law may change. Federal estate and state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a Contract depend on the individual circumstances of each contract owner or recipient of the distribution. A competent tax adviser should be consulted for further information. POSSIBLE CHANGES IN TAXATION Although the likelihood of legislative change is uncertain, there is always the possibility that the tax treatment of the Contracts could change by legislation or other means. It is also possible that any change could be retroactive (that is, effective before the date of the change). You should consult a tax adviser with respect to legislative developments and their effect on the Contract. FEDERAL INCOME TAX WITHHOLDING We will withhold and remit to the U.S. government a part of the taxable portion of each distribution made under a Contract unless the distributee notifies us at or before the time of the distribution that he Landmark-###### 52 or she elects not to have any amounts withheld. In certain circumstances, we may be required to withhold tax, as explained above. The withholding rates applicable to the taxable portion of periodic annuity payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. In addition, a 10% withholding rate applies to the taxable portion of non-periodic payments (including withdrawals prior to the annuity starting date) and conversions of, and rollovers from, non-Roth IRAs to Roth IRAs. Regardless of whether you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of the payment. As discussed above, the withholding rate applicable to eligible rollover distributions is 20%. Landmark-###### 53 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- TABLE OF CONTENTS Item Introduction Description of ING USA Annuity and Life Insurance Company Safekeeping of Assets The Administrator Independent Auditors Distribution of Contracts Performance Information IRA Partial Withdrawal Option Other Information Financial Statements of Golden American Life Insurance Company Financial Statements of Separate Account B - ------------------------------------------------------------------------------- PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER THE PROSPECTUS. SEND THE FORM TO OUR CUSTOMER SERVICE CENTER AT THE ADDRESS SHOWN ON THE PROSPECTUS COVER. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT B. Please Print or Type: -------------------------------------------------- NAME -------------------------------------------------- SOCIAL SECURITY NUMBER -------------------------------------------------- STREET ADDRESS -------------------------------------------------- CITY, STATE, ZIP Landmark - ###### 02/XX/2004 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Landmark-###### 54 - -------------------------------------------------------------------------------- APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION Except for subaccounts which did not commence operations as of December 31, 2002, the following tables give (1) the accumulation unit value ("AUV") at the beginning of the period, (2) the AUV at the end of the period and (3) the total number of accumulation units outstanding at the end of the period for each subaccount of ING USA Separate Account B available under the Contract for the indicated periods. 2002 2001 2000 ---- ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 1.65 % AIM VI DENT DEMOGRAPHIC TRENDS AUV at Beginning of Period $10.99 $10.00 (5) AUV at End of Period $7.32 $10.99 Number of Accumulation Units Outstanding at End of Period 95,005 9,170 FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.58 $10.00 (7) AUV at End of Period $7.80 $9.58 Number of Accumulation Units Outstanding at End of Period 177,883 -- FIDELITY(R) VIP GROWTH AUV at Beginning of Period $9.26 $10.00 (7) AUV at End of Period $6.35 $9.26 Number of Accumulation Units Outstanding at End of Period 202,569 -- ING AIM MID CAP GROWTH AUV at Beginning of Period $14.46 $18.65 $21.51 (1) AUV at End of Period $9.71 $14.46 $18.65 Number of Accumulation Units Outstanding at End of Period 335,993 414,298 185,121 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.42 $17.00 $19.97 (1) AUV at End of Period $9.92 $14.42 $17.00 Number of Accumulation Units Outstanding at End of Period 481,010 388,823 181,294 ING CAPITAL GUARDIAN LARGE CAP VALUE AUV at Beginning of Period $9.97 $10.52 $10.00 (1) AUV at End of Period $7.47 $9.97 $10.52 Number of Accumulation Units Outstanding at End of Period 2,660,135 1,400,044 181,541 ING CAPITAL GUARDIAN MANAGED GLOBAL AUV at Beginning of Period $17.11 $19.75 $21.96 (1) AUV at End of Period $13.43 $17.11 $19.75 Number of Accumulation Units Outstanding at End of Period 1,121,603 791,259 406,790 ING CAPITAL GUARDIAN SMALL CAP AUV at Beginning of Period $17.60 $18.17 $23.49 (1) AUV at End of Period $12.91 $17.60 $18.17 Number of Accumulation Units Outstanding at End of Period 874,016 534,470 184,093 Landmark-###### A1 ING DEVELOPING WORLD AUV at Beginning of Period $7.01 $7.52 $11.62 (1) AUV at End of Period $6.16 $7.01 $7.52 Number of Accumulation Units Outstanding at End of Period 249,736 203,417 52,533 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.99 $19.14 $17.30 (1) AUV at End of Period $14.68 $17.99 $19.14 Number of Accumulation Units Outstanding at End of Period 318,880 183,496 41,973 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.06 $9.87 $10.00 (3) AUV at End of Period $7.19 $9.06 $9.87 Number of Accumulation Units Outstanding at End of Period 877,092 390,858 9,164 ING GET FUND -- SERIES T AUV at Beginning of Period $10.00 (8) AUV at End of Period $10.07 Number of Accumulation Units Outstanding at End of Period 19,504 ING GET FUND -- SERIES U AUV at Beginning of Period $10.00 (9) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GOLDMAN SACHS INTERNET TOLLKEEPER AUV at Beginning of Period $7.60 $10.00 (4) AUV at End of Period $4.63 $7.60 Number of Accumulation Units Outstanding at End of Period 240,376 35,022 ING HARD ASSETS AUV at Beginning of Period $13.67 $15.81 $15.76 (1) AUV at End of Period $13.55 $13.67 $15.81 Number of Accumulation Units Outstanding at End of Period 108,460 18,910 5,200 ING INTERNATIONAL EQUITY AUV at Beginning of Period $8.60 $11.32 $14.90 (6) AUV at End of Period $7.09 $8.60 $11.32 Number of Accumulation Units Outstanding at End of Period 244,423 66,133 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.84 $9.94 $10.00 (3) AUV at End of Period $7.01 $8.84 $9.94 Number of Accumulation Units Outstanding at End of Period 1,160,152 480,294 19,469 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.30 $8.88 $10.00 (3) AUV at End of Period $6.04 $8.30 $8.88 Number of Accumulation Units Outstanding at End of Period 246,924 151,551 9,174 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $21.05 $24.59 $28.98 (1) AUV at End of Period $14.64 $21.05 $24.59 Number of Accumulation Units Outstanding at End of Period 479,670 337,955 124,676 ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.21 Number of Accumulation Units Outstanding at End of Period 81,977 ING JP MORGAN FLEMING SMALLCAP AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.83 Number of Accumulation Units Outstanding at End of Period 114,380 ING LIMITED MATURITY BOND AUV at Beginning of Period $18.39 $17.18 $16.19 (1) AUV at End of Period $19.40 $18.39 $17.18 Number of Accumulation Units Outstanding at End of Period 917,937 389,087 49,754 ING LIQUID ASSETS AUV at Beginning of Period $15.26 $14.94 $14.37 (1) AUV at End of Period $15.23 $15.26 $14.94 Number of Accumulation Units Outstanding at End of Period 1,599,933 953,602 302,892 ING MARSICO GROWTH AUV at Beginning of Period $14.92 $21.75 $28.89 (1) AUV at End of Period $10.34 $14.92 $21.75 Number of Accumulation Units Outstanding at End of Period 1,434,608 1,236,743 693,052 ING MERCURY FOCUS VALUE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.36 Number of Accumulation Units Outstanding at End of Period 36,244 ING MERCURY FUNDAMENTAL GROWTH AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.96 Number of Accumulation Units Outstanding at End of Period 60,487 ING MFS MID CAP GROWTH AUV at Beginning of Period $31.27 $41.63 $38.15 (1) AUV at End of Period $15.74 $31.27 $41.63 Number of Accumulation Units Outstanding at End of Period 844,740 569,707 186,073 ING MFS RESEARCH AUV at Beginning of Period $20.06 $25.97 $26.65 (1) AUV at End of Period $14.82 $20.06 $25.97 Number of Accumulation Units Outstanding at End of Period 921,349 792,240 378,215 ING MFS TOTAL RETURN AUV at Beginning of Period $20.18 $20.42 $17.27 (1) AUV at End of Period $18.83 $20.18 $20.42 Number of Accumulation Units Outstanding at End of Period 1,672,477 915,770 205,502 ING PIMCO CORE BOND AUV at Beginning of Period $11.64 $11.55 $11.32 (1) AUV at End of Period $12.44 $11.64 $11.55 Number of Accumulation Units Outstanding at End of Period 1,936,106 244,538 14,652 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.59 $11.57 $10.00 (1) AUV at End of Period $8.49 $11.59 $11.57 Number of Accumulation Units Outstanding at End of Period 1,505,988 807,563 70,600 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.58 $11.24 $10.00 (1) AUV at End of Period $8.01 $10.58 $11.24 Number of Accumulation Units Outstanding at End of Period 1,030,211 401,684 21,065 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $27.27 $25.23 $20.42 (1) AUV at End of Period $26.95 $27.27 $25.23 Number of Accumulation Units Outstanding at End of Period 1,232,631 477,872 61,545 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $23.10 $23.17 $19.74 (1) AUV at End of Period $19.72 $23.10 $23.17 Number of Accumulation Units Outstanding at End of Period 814,592 410,546 79,161 ING VAN KAMPEN EQUITY GROWTH AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of Period 28,455 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.83 Number of Accumulation Units Outstanding at End of Period 136,897 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $21.17 $24.45 $25.20 (1) AUV at End of Period $17.75 $21.17 $24.45 Number of Accumulation Units Outstanding at End of Period 835,107 752,796 428,500 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $27.45 $25.81 $20.18 (1) AUV at End of Period $27.05 $27.45 $25.81 Number of Accumulation Units Outstanding at End of Period 242,782 77,777 12,612 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.63 Number of Accumulation Units Outstanding at End of Period 88,275 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.78 $10.00 (4) AUV at End of Period $5.24 $7.78 Number of Accumulation Units Outstanding at End of Period 157,970 50,783 ING VP MAGNACAP AUV at Beginning of Period $9.34 $10.00 (4) AUV at End of Period $7.07 $9.34 Number of Accumulation Units Outstanding at End of Period 153,013 28,170 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.32 $10.00 (4) AUV at End of Period $4.60 $8.32 Number of Accumulation Units Outstanding at End of Period 563,709 111,946 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.99 $8.74 $10.00 (2) AUV at End of Period $5.17 $6.99 $8.74 Number of Accumulation Units Outstanding at End of Period 322,466 158,546 39,547 INVESCO VIF HEALTH SCIENCES AUV at Beginning of Period $10.26 $10.00 (5) AUV at End of Period $7.62 $10.26 Number of Accumulation Units Outstanding at End of Period 183,978 7,400 INVESCO VIF LEISURE FUND AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.43 Number of Accumulation Units Outstanding at End of Period 65,382 INVESCO VIF FINANCIAL SERVICES AUV at Beginning of Period $9.35 $10.00 (5) AUV at End of Period $7.83 $9.35 Number of Accumulation Units Outstanding at End of Period 200,146 5,433 INVESCO VIF UTILITIES AUV at Beginning of Period $8.10 $10.00 (5) AUV at End of Period $6.35 $8.10 Number of Accumulation Units Outstanding at End of Period 51,660 1,002 JENNISON PORTFOLIO AUV at Beginning of Period $6.27 $7.83 $10.00 (2) AUV at End of Period $4.24 $6.27 $7.83 Number of Accumulation Units Outstanding at End of Period 522,740 201,082 15,840 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $10.01 $9.94 $10.12 (1) AUV at End of Period $9.73 $10.01 $9.94 Number of Accumulation Units Outstanding at End of Period 1,388,956 581,041 111,021 PIMCO STOCKSPLUS GROWTH & INCOME AUV at Beginning of Period $10.14 $11.64 $12.48 (1) AUV at End of Period $7.95 $10.14 $11.64 Number of Accumulation Units Outstanding at End of Period 745,490 468,628 187,618 PIONEER FUND VCT AUV at Beginning of Period $9.37 $10.00 (5) AUV at End of Period $7.44 $9.37 Number of Accumulation Units Outstanding at End of Period 184,119 9,738 PIONEER MID CAP VALUE AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.34 $10.71 Number of Accumulation Units Outstanding at End of Period 338,219 6,577 PROFUND VP BULL AUV at Beginning of Period $8.88 $10.00 (4) AUV at End of Period $6.64 $8.88 Number of Accumulation Units Outstanding at End of Period 127,499 92,175 PROFUND VP EUROPE 30 AUV at Beginning of Period $8.25 $10.00 (4) AUV at End of Period $6.03 $8.25 Number of Accumulation Units Outstanding at End of Period 64,317 14,668 PROFUND VP SMALL CAP AUV at Beginning of Period $9.41 $10.00 (4) AUV at End of Period $7.18 $9.41 Number of Accumulation Units Outstanding at End of Period 236,885 18,943 SP JENNISON INTERNATIONAL GROWTH AUV at Beginning of Period $5.39 $8.56 $10.00 (3) AUV at End of Period $4.09 $5.39 $8.56 Number of Accumulation Units Outstanding at End of Period 243,444 109,344 3,557 FOOTNOTES (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002 2002 2001 2000 ---- ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 1.80 % AIM VI DENT DEMOGRAPHIC TRENDS AUV at Beginning of Period $10.98 $10.00 (5) AUV at End of Period $7.31 $10.98 Number of Accumulation Units Outstanding at End of Period 144,579 7,111 FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.79 $9.57 Number of Accumulation Units Outstanding at End of Period 178,752.0 -- FIDELITY(R) VIP GROWTH AUV at Beginning of Period $9.25 $10.00 (7) AUV at End of Period $6.33 $9.25 Number of Accumulation Units Outstanding at End of Period 244,586 652 GALAXY VIP ASSET ALLOCATION AUV at Beginning of Period $9.75 $10.73 $10.51 AUV at End of Period $8.05 $9.75 $10.73 Number of Accumulation Units Outstanding at End of Period 6,393 11,977 18,516 GALAXY VIP EQUITY FUND AUV at Beginning of Period $9.12 $11.36 $11.51 AUV at End of Period $6.48 $9.12 $11.36 Number of Accumulation Units Outstanding at End of Period 9,491 14,708 14,623 GALAXY VIP GROWTH & INCOME AUV at Beginning of Period $10.31 $10.93 $10.25 AUV at End of Period $7.46 $10.31 $10.93 Number of Accumulation Units Outstanding at End of Period 778 785 7,086 GALAXY VIP QUALITY PLUS BOND AUV at Beginning of Period $11.60 $10.99 $9.94 AUV at End of Period $12.57 $11.60 $10.99 Number of Accumulation Units Outstanding at End of Period 2,995 1,476 -- GALAXY VIP SMALL COMPANY GROWTH AUV at Beginning of Period $13.02 $13.28 $15.05 AUV at End of Period $8.57 $13.02 $13.28 Number of Accumulation Units Outstanding at End of Period 1,382 793 627 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.32 $18.50 $21.37 (1) AUV at End of Period $9.61 $14.32 $18.50 Number of Accumulation Units Outstanding at End of Period 1,196,567 1,447,650 1,203,898 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.30 $16.88 $19.86 (1) AUV at End of Period $9.82 $14.30 $16.88 Number of Accumulation Units Outstanding at End of Period 1,761,535 1,586,391 1,171,869 ING CAPITAL GUARDIAN LARGE CAP VALUE AUV at Beginning of Period $9.94 $10.51 $10.00 (1) AUV at End of Period $7.44 $9.94 $10.51 Number of Accumulation Units Outstanding at End of Period 5,103,821 3,603,942 1,403,629 ING CAPITAL GUARDIAN MANAGED GLOBAL AUV at Beginning of Period $16.87 $19.51 $21.72 (1) AUV at End of Period $13.23 $16.87 $19.51 Number of Accumulation Units Outstanding at End of Period 1,564,388 1,137,846 621,115 ING CAPITAL GUARDIAN SMALL CAP AUV at Beginning of Period $17.44 $18.03 $23.35 (1) AUV at End of Period $12.77 $17.44 $18.03 Number of Accumulation Units Outstanding at End of Period 2,319,410 1,876,959 1,163,996 ING DEVELOPING WORLD AUV at Beginning of Period $6.97 $7.49 $11.58 (1) AUV at End of Period $6.11 $6.97 $7.49 Number of Accumulation Units Outstanding at End of Period 690,414 640,405 549,427 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.80 $18.97 $17.17 (1) AUV at End of Period $14.50 $17.80 $18.97 Number of Accumulation Units Outstanding at End of Period 923,702 706,803 298,983 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.05 $9.87 $10.00 (3) AUV at End of Period $7.17 $9.05 $9.87 Number of Accumulation Units Outstanding at End of Period 1,611,467 815,848 55,360 ING GET FUND -- SERIES T AUV at Beginning of Period $10.00 (8) AUV at End of Period $10.06 Number of Accumulation Units Outstanding at End of Period 508,431 ING GET FUND -- SERIES U AUV at Beginning of Period $10.00 (9) AUV at End of Period $10.00 Number of Accumulation Units Outstanding at End of Period 1,187 ING GOLDMAN SACHS INTERNET TOLLKEEPER AUV at Beginning of Period $7.60 $10.00 (4) AUV at End of Period $4.62 $7.60 Number of Accumulation Units Outstanding at End of Period 220,935 46,906 ING HARD ASSETS AUV at Beginning of Period $13.40 $15.53 $15.50 (1) AUV at End of Period $13.26 $13.40 $15.53 Number of Accumulation Units Outstanding at End of Period 302,602 94,214 42,632 ING INTERNATIONAL EQUITY AUV at Beginning of Period $8.52 $11.23 $14.81 (6) AUV at End of Period $7.02 $8.52 $11.23 Number of Accumulation Units Outstanding at End of Period 1,565,175 1,182,590 1,033,869 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.83 $9.93 $10.00 (3) AUV at End of Period $6.99 $8.83 $9.93 Number of Accumulation Units Outstanding at End of Period 2,513,592 1,282,147 148,807 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.28 $8.88 $10.00 (3) AUV at End of Period $6.02 $8.28 $8.88 Number of Accumulation Units Outstanding at End of Period 401,444 319,420 62,575 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.74 $24.27 $28.64 (1) AUV at End of Period $14.41 $20.74 $24.27 Number of Accumulation Units Outstanding at End of Period 1,643,362 1,587,677 981,676 ING JP MORGAN FLEMING INTERNATIONAL EAFE ENHANCED AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.20 Number of Accumulation Units Outstanding at End of Period 51,442 ING JP MORGAN FLEMING SMALLCAP AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of Period 95,249 ING LIMITED MATURITY BOND AUV at Beginning of Period $18.03 $16.87 $15.92 (1) AUV at End of Period $18.99 $18.03 $16.87 Number of Accumulation Units Outstanding at End of Period 2,793,640 1,730,153 507,893 ING LIQUID ASSETS AUV at Beginning of Period $14.96 $14.67 $14.13 (1) AUV at End of Period $14.91 $14.96 $14.67 Number of Accumulation Units Outstanding at End of Period 10,613,768 9,752,616 2,657,053 ING MARSICO GROWTH AUV at Beginning of Period $14.79 $21.59 $28.72 (1) AUV at End of Period $10.23 $14.79 $21.59 Number of Accumulation Units Outstanding at End of Period 4,731,610 5,132,970 3,791,737 ING MERCURY FOCUS VALUE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.35 Number of Accumulation Units Outstanding at End of Period 53,879 ING MERCURY FUNDAMENTAL GROWTH AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.95 Number of Accumulation Units Outstanding at End of Period 27,465 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.92 $41.24 $37.84 (1) AUV at End of Period $15.55 $30.92 $41.24 Number of Accumulation Units Outstanding at End of Period 2,356,960 2,066,676 1,240,675 ING MFS RESEARCH AUV at Beginning of Period $19.84 $25.72 $26.43 (1) AUV at End of Period $14.64 $19.84 $25.72 Number of Accumulation Units Outstanding at End of Period 2,132,959 1,666,295 1,007,294 ING MFS TOTAL RETURN AUV at Beginning of Period $19.96 $20.22 $17.13 (1) AUV at End of Period $18.60 $19.96 $20.22 Number of Accumulation Units Outstanding at End of Period 3,921,173 2,673,135.0 836,664.0 ING PIMCO CORE BOND AUV at Beginning of Period $11.51 $11.44 $11.23 (1) AUV at End of Period $12.29 $11.51 $11.44 Number of Accumulation Units Outstanding at End of Period 3,457,462 958,057 183,531 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.56 $11.55 $10.00 (1) AUV at End of Period $8.45 $11.56 $11.55 Number of Accumulation Units Outstanding at End of Period 3,308,447 2,722,089 780,053 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.55 $11.22 $10.00 (1) AUV at End of Period $7.98 $10.55 $11.22 Number of Accumulation Units Outstanding at End of Period 1,333,387 820,331 145,735 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.74 $24.77 $20.08 (1) AUV at End of Period $26.38 $26.74 $24.77 Number of Accumulation Units Outstanding at End of Period 3,716,910 1,927,531 400,243 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.64 $22.75 $19.41 (1) AUV at End of Period $19.30 $22.64 $22.75 Number of Accumulation Units Outstanding at End of Period 1,769,554 1,103,377.0 311,484.0 ING VAN KAMPEN EQUITY GROWTH AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.80 Number of Accumulation Units Outstanding at End of Period 37,952 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.82 Number of Accumulation Units Outstanding at End of Period 133,794 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.91 $24.18 $24.96 (1) AUV at End of Period $17.50 $20.91 $24.18 Number of Accumulation Units Outstanding at End of Period 1,678,851 1,489,476 803,307 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.91 $25.34 $19.85 (1) AUV at End of Period $26.48 $26.91 $25.34 Number of Accumulation Units Outstanding at End of Period 639,504 310,014 77,442 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.62 Number of Accumulation Units Outstanding at End of Period 616,917 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.77 $10.00 (4) AUV at End of Period $5.23 $7.77 Number of Accumulation Units Outstanding at End of Period 178,992 74,652 ING VP MAGNACAP AUV at Beginning of Period $9.33 $10.00 (4) AUV at End of Period $7.05 $9.33 Number of Accumulation Units Outstanding at End of Period 190,988 102,246 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.31 $10.00 (4) AUV at End of Period $4.59 $8.31 Number of Accumulation Units Outstanding at End of Period 696,664 222,328 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.98 $8.73 $10.00 (2) AUV at End of Period $5.15 $6.98 $8.73 Number of Accumulation Units Outstanding at End of Period 598,428 468,772 84,578 INVESCO VIF HEALTH SCIENCES AUV at Beginning of Period $10.25 $10.00 (5) AUV at End of Period $7.61 $10.25 Number of Accumulation Units Outstanding at End of Period 375,102 25,836 INVESCO VIF LEISURE FUND AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.42 Number of Accumulation Units Outstanding at End of Period 54,250 INVESCO VIF--FINANCIAL SERVICES AUV at Beginning of Period $9.35 $10.00 (5) AUV at End of Period $7.81 $9.35 Number of Accumulation Units Outstanding at End of Period 284,060 18,560 INVESCO VIF--UTILITIES AUV at Beginning of Period $8.09 $10.00 (5) AUV at End of Period $6.33 $8.09 Number of Accumulation Units Outstanding at End of Period 167,758 16,134 JENNISON PORTFOLIO AUV at Beginning of Period $6.25 $7.82 $10.00 (2) AUV at End of Period $4.23 $6.25 $7.82 Number of Accumulation Units Outstanding at End of Period 934,116 1,102,268 89,929 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.95 $9.90 $10.09 (1) AUV at End of Period $9.66 $9.95 $9.90 Number of Accumulation Units Outstanding at End of Period 3,639,545 1,847,566 631,991 PIMCO STOCKSPLUS GROWTH & INCOME AUV at Beginning of Period $10.08 $11.59 $12.45 (1) AUV at End of Period $7.90 $10.08 $11.59 Number of Accumulation Units Outstanding at End of Period 1,932,333 1,789,954 1,176,897 PIONEER FUND VCT AUV at Beginning of Period $9.37 $10.00 (5) AUV at End of Period $7.43 $9.37 Number of Accumulation Units Outstanding at End of Period 229,508 22,142 PIONEER MID CAP VALUE AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.32 $10.71 Number of Accumulation Units Outstanding at End of Period 503,892 23,811 PROFUND VP BULL AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.62 $8.87 Number of Accumulation Units Outstanding at End of Period 475,785 244,571 PROFUND VP EUROPE 30 AUV at Beginning of Period $8.24 $10.00 (4) AUV at End of Period $6.01 $8.24 Number of Accumulation Units Outstanding at End of Period 103,963 39,270 PROFUND VP SMALL CAP AUV at Beginning of Period $9.40 $10.00 (4) AUV at End of Period $7.16 $9.40 Number of Accumulation Units Outstanding at End of Period 420,431 132,361 SP JENNISON INTERNATIONAL GROWTH AUV at Beginning of Period $5.38 $8.55 $10.00 (3) AUV at End of Period $4.08 $5.38 $8.55 Number of Accumulation Units Outstanding at End of Period 360,089 212,147 12,698 FOOTNOTES (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002 2002 2001 2000 ---- ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 1.90 % AIM VI DENT DEMOGRAPHIC TRENDS AUV at Beginning of Period $10.98 $10.00 (5) AUV at End of Period $7.30 $10.98 Number of Accumulation Units Outstanding at End of Period 237,698 119,539 FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.78 $9.57 Number of Accumulation Units Outstanding at End of Period 250,947 FIDELITY(R) VIP GROWTH AUV at Beginning of Period $9.25 $10.00 (7) AUV at End of Period $6.33 $9.25 Number of Accumulation Units Outstanding at End of Period 473,547 GALAXY VIP ASSET ALLOCATION AUV at Beginning of Period $9.72 $10.71 $10.50 AUV at End of Period $9.72 $10.71 Number of Accumulation Units Outstanding at End of Period -- -- -- GALAXY VIP EQUITY FUND AUV at Beginning of Period $9.10 $11.34 $11.50 AUV at End of Period $6.46 $9.10 $11.34 Number of Accumulation Units Outstanding at End of Period 2,067 -- -- GALAXY VIP GROWTH & INCOME AUV at Beginning of Period $10.28 $10.92 $10.25 AUV at End of Period $7.44 $10.28 $10.92 Number of Accumulation Units Outstanding at End of Period 520 -- -- GALAXY VIP QUALITY PLUS BOND AUV at Beginning of Period $11.57 $10.98 $9.93 AUV at End of Period $11.57 $10.98 Number of Accumulation Units Outstanding at End of Period -- -- -- GALAXY VIP SMALL COMPANY GROWTH AUV at Beginning of Period $12.99 $13.27 $15.05 AUV at End of Period $8.55 $12.99 $13.27 Number of Accumulation Units Outstanding at End of Period 98 99 100 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.23 $18.40 $21.27 (1) AUV at End of Period $9.54 $14.23 $18.40 Number of Accumulation Units Outstanding at End of Period 1,357,778 1,475,163 1,103,423 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.21 $16.80 $19.78 (1) AUV at End of Period $9.76 $14.21 $16.80 Number of Accumulation Units Outstanding at End of Period 1,863,527 1,557,259 874,247 ING CAPITAL GUARDIAN LARGE CAP VALUE AUV at Beginning of Period $9.92 $10.50 $10.00 (1) AUV at End of Period $7.42 $9.92 $10.50 Number of Accumulation Units Outstanding at End of Period 6,279,536 4,320,851 993,651 ING CAPITAL GUARDIAN MANAGED GLOBAL AUV at Beginning of Period $16.72 $19.34 $21.56 (1) AUV at End of Period $13.09 $16.72 $19.34 Number of Accumulation Units Outstanding at End of Period 1,515,003 1,118,604 522,271 ING CAPITAL GUARDIAN SMALL CAP AUV at Beginning of Period $17.34 $17.94 $23.25 (1) AUV at End of Period $12.68 $17.34 $17.94 Number of Accumulation Units Outstanding at End of Period 2,389,036 1,918,122 825,516 ING DEVELOPING WORLD AUV at Beginning of Period $6.94 $7.47 $11.56 (1) AUV at End of Period $6.08 $6.94 $7.47 Number of Accumulation Units Outstanding at End of Period 847,173 509,513 259,187 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.68 $18.85 $17.08 (1) AUV at End of Period $14.38 $17.68 $18.85 Number of Accumulation Units Outstanding at End of Period 983,703 665,936 162,505 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.04 $9.87 $10.00 (3) AUV at End of Period $7.15 $9.04 $9.87 Number of Accumulation Units Outstanding at End of Period 2,302,131 1,385,134 89,462 ING GET FUND -- SERIES T AUV at Beginning of Period $10.00 (8) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GET FUND -- SERIES U AUV at Beginning of Period $10.00 (9) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GOLDMAN SACHS INTERNET TOLLKEEPER AUV at Beginning of Period $7.59 $10.00 (4) AUV at End of Period $4.61 $7.59 Number of Accumulation Units Outstanding at End of Period 447,885 162,626 ING HARD ASSETS AUV at Beginning of Period $13.22 $15.34 $15.33 (1) AUV at End of Period $13.08 $13.22 $15.34 Number of Accumulation Units Outstanding at End of Period 932,327 315,574 227,856 ING INTERNATIONAL EQUITY AUV at Beginning of Period $8.47 $11.18 $14.76 (6) AUV at End of Period $6.97 $8.47 $11.18 Number of Accumulation Units Outstanding at End of Period 1,470,429 1,055,368 685,944 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.82 $9.93 $10.00 (3) AUV at End of Period $6.97 $8.82 $9.93 Number of Accumulation Units Outstanding at End of Period 3,186,621 2,016,515 113,353 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.27 $8.88 $10.00 (3) AUV at End of Period $6.01 $8.27 $8.88 Number of Accumulation Units Outstanding at End of Period 520,898 420,371 83,761 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.53 $24.06 $28.41 (1) AUV at End of Period $14.25 $20.53 $24.06 Number of Accumulation Units Outstanding at End of Period 2,091,213 1,748,122 969,120 ING JP MORGAN FLEMING INTERNATIONAL EAFE ENHANCED AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.20 Number of Accumulation Units Outstanding at End of Period 138,594 ING JP MORGAN FLEMING SMALLCAP AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of Period 155,620 ING LIMITED MATURITY BOND AUV at Beginning of Period $17.80 $16.67 $15.74 (1) AUV at End of Period $18.72 $17.80 $16.67 Number of Accumulation Units Outstanding at End of Period 2,647,005 1,441,971 273,264 ING LIQUID ASSETS AUV at Beginning of Period $14.77 $14.50 $13.97 (1) AUV at End of Period $14.70 $14.77 $14.50 Number of Accumulation Units Outstanding at End of Period 7,015,870 6,235,817 2,132,811 ING MARSICO GROWTH AUV at Beginning of Period $14.71 $21.49 $28.61 (1) AUV at End of Period $10.16 $14.71 $21.49 Number of Accumulation Units Outstanding at End of Period 4,149,074 4,093,894 2,741,325 ING MERCURY FOCUS VALUE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.34 Number of Accumulation Units Outstanding at End of Period 94,083 ING MERCURY FUNDAMENTAL GROWTH AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.95 Number of Accumulation Units Outstanding at End of Period 62,915 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.70 $40.98 $37.63 (1) AUV at End of Period $15.42 $30.70 $40.98 Number of Accumulation Units Outstanding at End of Period 2,751,560 2,275,455 1,099,617 ING MFS RESEARCH AUV at Beginning of Period $19.69 $25.56 $26.29 (1) AUV at End of Period $14.51 $19.69 $25.56 Number of Accumulation Units Outstanding at End of Period 2,110,645 1,829,741 807,166 ING MFS TOTAL RETURN AUV at Beginning of Period $19.81 $20.10 $17.04 (1) AUV at End of Period $18.44 $19.81 $20.10 Number of Accumulation Units Outstanding at End of Period 4,012,552 2,637,734 506,976 ING PIMCO CORE BOND AUV at Beginning of Period $11.43 $11.37 $11.17 (1) AUV at End of Period $12.19 $11.43 $11.37 Number of Accumulation Units Outstanding at End of Period 5,600,337 1,352,337 101,577 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.54 $11.54 $10.00 (1) AUV at End of Period $8.42 $11.54 $11.54 Number of Accumulation Units Outstanding at End of Period 5,615,264 4,291,401 986,100 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.53 $11.21 $10.00 (1) AUV at End of Period $7.95 $10.53 $11.21 Number of Accumulation Units Outstanding at End of Period 2,079,377 1,766,107 191,223 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.39 $24.47 $19.86 (1) AUV at End of Period $26.01 $26.39 $24.47 Number of Accumulation Units Outstanding at End of Period 3,927,375 1,940,881 183,884 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.35 $22.48 $19.19 (1) AUV at End of Period $19.03 $22.35 $22.48 Number of Accumulation Units Outstanding at End of Period 2,273,204 1,364,874 238,986 ING VAN KAMPEN EQUITY GROWTH AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.79 Number of Accumulation Units Outstanding at End of Period 67,606 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.82 Number of Accumulation Units Outstanding at End of Period 201,786 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.73 $24.00 $24.80 (1) AUV at End of Period $17.34 $20.73 $24.00 Number of Accumulation Units Outstanding at End of Period 1,920,555 1,546,448 713,282 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.56 $25.04 $19.63 (1) AUV at End of Period $26.11 $26.56 $25.04 Number of Accumulation Units Outstanding at End of Period 768,503 474,135 192,508 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.61 Number of Accumulation Units Outstanding at End of Period 456,891 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.76 $10.00 (4) AUV at End of Period $5.22 $7.76 Number of Accumulation Units Outstanding at End of Period 355,700 182,159 ING VP MAGNACAP AUV at Beginning of Period $9.32 $10.00 (4) AUV at End of Period $7.04 $9.32 Number of Accumulation Units Outstanding at End of Period 295,511 117,705 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.30 $10.00 (4) AUV at End of Period $4.58 $8.30 Number of Accumulation Units Outstanding at End of Period 1,196,787 253,382 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.96 $8.72 $10.00 (2) AUV at End of Period $5.14 $6.96 $8.72 Number of Accumulation Units Outstanding at End of Period 1,083,707 477,958 68,648 INVESCO VIF HEALTH SCIENCES AUV at Beginning of Period $10.25 $10.00 (5) AUV at End of Period $7.59 $10.25 Number of Accumulation Units Outstanding at End of Period 736,096 289,358 INVESCO VIF LEISURE FUND AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.41 Number of Accumulation Units Outstanding at End of Period 100,699 INVESCO VIF--FINANCIAL SERVICES AUV at Beginning of Period $9.34 $10.00 (5) AUV at End of Period $7.80 $9.34 Number of Accumulation Units Outstanding at End of Period 407,036 18,432 INVESCO VIF--UTILITIES AUV at Beginning of Period $8.09 $10.00 (5) AUV at End of Period $6.32 $8.09 Number of Accumulation Units Outstanding at End of Period 173,346 23,627 JENNISON PORTFOLIO AUV at Beginning of Period $6.24 $7.82 $10.00 (2) AUV at End of Period $4.22 $6.24 $7.82 Number of Accumulation Units Outstanding at End of Period 1,916,839 1,029,815 152,003 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.91 $9.88 $10.07 (1) AUV at End of Period $9.61 $9.91 $9.88 Number of Accumulation Units Outstanding at End of Period 3,093,339 1,858,684 386,288 PIMCO STOCKSPLUS GROWTH & INCOME AUV at Beginning of Period $10.04 $11.56 $12.42 (1) AUV at End of Period $7.86 $10.04 $11.56 Number of Accumulation Units Outstanding at End of Period 1,702,075 1,325,932 829,397 PIONEER FUND VCT AUV at Beginning of Period $9.36 $10.00 (5) AUV at End of Period $7.42 $9.36 Number of Accumulation Units Outstanding at End of Period 562,117 47,468 PIONEER MID CAP VALUE AUV at Beginning of Period $10.71 $10.00 (5) AUV at End of Period $9.31 $10.71 Number of Accumulation Units Outstanding at End of Period 740,867 72,420 PROFUND VP BULL AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.61 $8.87 Number of Accumulation Units Outstanding at End of Period 491,042 103,369 PROFUND VP EUROPE 30 AUV at Beginning of Period $8.24 $10.00 (4) AUV at End of Period $6.00 $8.24 Number of Accumulation Units Outstanding at End of Period 218,083 19,682 PROFUND VP SMALL CAP AUV at Beginning of Period $9.40 $10.00 (4) AUV at End of Period $7.15 $9.40 Number of Accumulation Units Outstanding at End of Period 374,258 47,995.0 SP JENNISON INTERNATIONAL GROWTH AUV at Beginning of Period $5.37 $8.55 $10.00 (3) AUV at End of Period $4.07 $5.37 $8.55 Number of Accumulation Units Outstanding at End of Period 636,058 320,126 28,074 FOOTNOTES (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002 2002 2001 ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 1.95 % AIM VI DENT DEMOGRAPHIC TRENDS AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.29 $10.98 Number of Accumulation Units Outstanding at End of Period 2,381 -- FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.57 (4) AUV at End of Period $7.77 Number of Accumulation Units Outstanding at End of Period 9,459 FIDELITY(R) VIP GROWTH AUV at Beginning of Period $9.25 (4) AUV at End of Period $6.32 Number of Accumulation Units Outstanding at End of Period 7,613 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.19 $16.41 (1) AUV at End of Period $9.50 $14.19 Number of Accumulation Units Outstanding at End of Period 431 32 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.17 $16.21 (1) AUV at End of Period $14.17 Number of Accumulation Units Outstanding at End of Period -- -- ING CAPITAL GUARDIAN LARGE CAP VALUE AUV at Beginning of Period $9.91 $10.53 (1) AUV at End of Period $7.41 $9.91 Number of Accumulation Units Outstanding at End of Period 686 -- ING CAPITAL GUARDIAN MANAGED GLOBAL AUV at Beginning of Period $16.64 $19.44 (1) AUV at End of Period $16.64 Number of Accumulation Units Outstanding at End of Period -- -- ING CAPITAL GUARDIAN SMALL CAP AUV at Beginning of Period $17.28 $17.66 (1) AUV at End of Period $12.64 $17.28 Number of Accumulation Units Outstanding at End of Period 1,453 -- ING DEVELOPING WORLD AUV at Beginning of Period $6.93 $7.35 (1) AUV at End of Period $6.93 Number of Accumulation Units Outstanding at End of Period -- -- ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.61 $19.31 (1) AUV at End of Period $14.32 $17.61 Number of Accumulation Units Outstanding at End of Period 5,517 -- ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.03 $9.47 (1) AUV at End of Period $7.14 $9.03 Number of Accumulation Units Outstanding at End of Period 1,419 -- ING GET FUND -- SERIES T AUV at Beginning of Period $10.00 AUV at End of Period $10.06 Number of Accumulation Units Outstanding at End of Period 402,294 ING GET FUND -- SERIES U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GOLDMAN SACHS INTERNET TOLLKEEPER AUV at Beginning of Period $7.59 $10.00 (1) AUV at End of Period $7.59 Number of Accumulation Units Outstanding at End of Period -- -- ING HARD ASSETS AUV at Beginning of Period $13.14 $15.45 (1) AUV at End of Period $13.14 Number of Accumulation Units Outstanding at End of Period -- -- ING INTERNATIONAL EQUITY AUV at Beginning of Period $8.45 $9.82 (3) AUV at End of Period $8.45 Number of Accumulation Units Outstanding at End of Period -- -- ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.81 $9.65 (1) AUV at End of Period $6.96 $8.81 Number of Accumulation Units Outstanding at End of Period 5,288 -- ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.27 $8.98 (1) AUV at End of Period $8.27 Number of Accumulation Units Outstanding at End of Period -- -- ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.43 $23.18 (1) AUV at End of Period $20.43 Number of Accumulation Units Outstanding at End of Period -- -- ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of Period 467 ING JP MORGAN FLEMING SMALLCAP AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of Period 2,108 ING LIMITED MATURITY BOND AUV at Beginning of Period $17.71 $17.02 (1) AUV at End of Period $18.62 $17.71 Number of Accumulation Units Outstanding at End of Period 6,405 994 ING LIQUID ASSETS AUV at Beginning of Period $14.72 $14.61 (1) AUV at End of Period $14.64 $14.72 Number of Accumulation Units Outstanding at End of Period 19,321 92 ING MARSICO GROWTH AUV at Beginning of Period $14.66 $19.14 (1) AUV at End of Period $10.13 $14.66 Number of Accumulation Units Outstanding at End of Period 1,800 30 ING MERCURY FOCUS VALUE AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING MERCURY FUNDAMENTAL GROWTH AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING MFS MID CAP GROWTH AUV at Beginning of Period $30.58 $39.64 (1) AUV at End of Period $15.35 $30.58 Number of Accumulation Units Outstanding at End of Period 1,308 15 ING MFS RESEARCH AUV at Beginning of Period $19.62 $23.34 (1) AUV at End of Period $14.45 $19.62 Number of Accumulation Units Outstanding at End of Period 1,027 23 ING MFS TOTAL RETURN AUV at Beginning of Period $19.74 $20.20 (1) AUV at End of Period $18.37 $19.74 Number of Accumulation Units Outstanding at End of Period 19,958 470 ING PIMCO CORE BOND AUV at Beginning of Period $11.39 $10.99 (1) AUV at End of Period $12.13 $11.39 Number of Accumulation Units Outstanding at End of Period 32,108 -- ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.53 $12.25 (1) AUV at End of Period $8.41 $11.53 Number of Accumulation Units Outstanding at End of Period 3,105 778 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.52 $11.49 (1) AUV at End of Period $7.94 $10.52 Number of Accumulation Units Outstanding at End of Period 2,596 847 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.21 $26.07 (1) AUV at End of Period $25.83 $26.21 Number of Accumulation Units Outstanding at End of Period 12,095 -- ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.20 $22.61 (1) AUV at End of Period $18.90 $22.20 Number of Accumulation Units Outstanding at End of Period 193 -- ING VAN KAMPEN EQUITY GROWTH AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.64 $21.93 (1) AUV at End of Period $17.26 $20.64 Number of Accumulation Units Outstanding at End of Period 835 23 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.39 $24.63 (1) AUV at End of Period $25.92 $26.39 Number of Accumulation Units Outstanding at End of Period 696 -- ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.76 $10.11 (1) AUV at End of Period $7.76 Number of Accumulation Units Outstanding at End of Period -- -- ING VP MAGNACAP AUV at Beginning of Period $9.32 $10.11 (1) AUV at End of Period $9.32 Number of Accumulation Units Outstanding at End of Period -- -- ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.30 $10.01 (1) AUV at End of Period $4.58 $8.30 Number of Accumulation Units Outstanding at End of Period 345 -- ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.96 $8.35 (1) AUV at End of Period $5.13 $6.96 Number of Accumulation Units Outstanding at End of Period 1,003 -- INVESCO VIF HEALTH SCIENCES AUV at Beginning of Period $10.25 $10.00 (2) AUV at End of Period $7.59 $10.25 Number of Accumulation Units Outstanding at End of Period 2,088 -- INVESCO VIF LEISURE FUND AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.41 Number of Accumulation Units Outstanding at End of Period 758 INVESCO VIF FINANCIAL SERVICES AUV at Beginning of Period $9.34 $10.00 (2) AUV at End of Period $7.79 $9.34 Number of Accumulation Units Outstanding at End of Period 667 -- INVESCO VIF UTILITIES AUV at Beginning of Period $8.09 $10.00 (2) AUV at End of Period $6.32 $8.09 Number of Accumulation Units Outstanding at End of Period 2,188 -- JENNISON PORTFOLIO AUV at Beginning of Period $6.24 $7.20 (1) AUV at End of Period $4.21 $6.24 Number of Accumulation Units Outstanding at End of Period 5,385 -- PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.90 $9.83 (1) AUV at End of Period $9.59 $9.90 Number of Accumulation Units Outstanding at End of Period 4,447 -- PIMCO STOCKSPLUS GROWTH & INCOME AUV at Beginning of Period $10.03 $11.01 (1) AUV at End of Period $10.03 Number of Accumulation Units Outstanding at End of Period -- -- PIONEER FUND VCT AUV at Beginning of Period $9.36 $10.00 (2) AUV at End of Period $7.41 $9.36 Number of Accumulation Units Outstanding at End of Period 6,687 -- PIONEER MID CAP VALUE AUV at Beginning of Period $10.71 $10.00 (2) AUV at End of Period $10.71 Number of Accumulation Units Outstanding at End of Period -- -- PROFUND VP BULL AUV at Beginning of Period $8.86 $10.00 (1) AUV at End of Period $6.61 $8.86 Number of Accumulation Units Outstanding at End of Period 305 -- PROFUND VP EUROPE 30 AUV at Beginning of Period $8.24 $10.05 (1) AUV at End of Period $8.24 Number of Accumulation Units Outstanding at End of Period -- -- PROFUND VP SMALL CAP AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $9.39 Number of Accumulation Units Outstanding at End of Period -- -- SP JENNISON INT. GROWTH AUV at Beginning of Period $5.37 $7.30 (1) AUV at End of Period $4.06 $5.37 Number of Accumulation Units Outstanding at End of Period 3,559 -- FOOTNOTES (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 2002 2001 ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 2.00 % AIM VI DENT DEMOGRAPHIC TRENDS AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.29 $10.98 Number of Accumulation Units Outstanding at End of Period 20,619 1,155 FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.76 Number of Accumulation Units Outstanding at End of Period 19,712 FIDELITY(R) VIP GROWTH AUV at Beginning of Period $9.25 (4) AUV at End of Period $6.32 Number of Accumulation Units Outstanding at End of Period 72,837 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.14 $16.37 (1) AUV at End of Period $9.47 $14.14 Number of Accumulation Units Outstanding at End of Period 24,834 16,923 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.13 $16.17 (1) AUV at End of Period $9.69 $14.13 Number of Accumulation Units Outstanding at End of Period 56,387 28,214 ING CAPITAL GUARDIAN LARGE CAP VALUE AUV at Beginning of Period $9.90 $10.52 (1) AUV at End of Period $7.40 $9.90 Number of Accumulation Units Outstanding at End of Period 483,293 111,131 ING CAPITAL GUARDIAN MANAGED GLOBAL AUV at Beginning of Period $16.56 $19.36 (1) AUV at End of Period $12.95 $16.56 Number of Accumulation Units Outstanding at End of Period 127,169 24,836 ING CAPITAL GUARDIAN SMALL CAP AUV at Beginning of Period $17.23 $17.61 (1) AUV at End of Period $12.59 $17.23 Number of Accumulation Units Outstanding at End of Period 123,958 28,511 ING DEVELOPING WORLD AUV at Beginning of Period $6.92 $7.34 (1) AUV at End of Period $6.05 $6.92 Number of Accumulation Units Outstanding at End of Period 40,885 10,204 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.55 $19.25 (1) AUV at End of Period $14.27 $17.55 Number of Accumulation Units Outstanding at End of Period 56,538 18,689 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.02 $9.47 (1) AUV at End of Period $7.13 $9.02 Number of Accumulation Units Outstanding at End of Period 163,816 19,800 ING GET FUND -- SERIES T AUV at Beginning of Period $10.00 AUV at End of Period $10.06 Number of Accumulation Units Outstanding at End of Period 95,839 ING GET FUND -- SERIES U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GOLDMAN SACHS INTERNET TOLLKEEPER AUV at Beginning of Period $7.59 $10.00 (1) AUV at End of Period $4.60 $7.59 Number of Accumulation Units Outstanding at End of Period 22,077 6,461 ING HARD ASSETS AUV at Beginning of Period $13.05 $15.35 (1) AUV at End of Period $12.89 $13.05 Number of Accumulation Units Outstanding at End of Period 14,039 3,689 ING INTERNATIONAL EQUITY AUV at Beginning of Period $8.42 $9.79 (3) AUV at End of Period $6.92 $8.42 Number of Accumulation Units Outstanding at End of Period 55,118 2 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.80 $9.64 (1) AUV at End of Period $6.95 $8.80 Number of Accumulation Units Outstanding at End of Period 184,661 56,788 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.26 $8.97 (1) AUV at End of Period $5.99 $8.26 Number of Accumulation Units Outstanding at End of Period 70,820 16,846 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.33 $23.07 (1) AUV at End of Period $14.10 $20.33 Number of Accumulation Units Outstanding at End of Period 44,959 10,329 ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of Period 8,531 ING JP MORGAN FLEMING SMALLCAP AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of Period 18,982 ING LIMITED MATURITY BOND AUV at Beginning of Period $17.59 $16.91 (1) AUV at End of Period $18.49 $17.59 Number of Accumulation Units Outstanding at End of Period 148,373 32,154 ING LIQUID ASSETS AUV at Beginning of Period $14.62 $14.52 (1) AUV at End of Period $14.54 $14.62 Number of Accumulation Units Outstanding at End of Period 246,748 202,030 ING MARSICO GROWTH AUV at Beginning of Period $14.62 $19.09 (1) AUV at End of Period $10.09 $14.62 Number of Accumulation Units Outstanding at End of Period 149,093 42,687 ING MERCURY FOCUS VALUE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.34 Number of Accumulation Units Outstanding at End of Period 1,399 ING MERCURY FUNDAMENTAL GROWTH AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.94 Number of Accumulation Units Outstanding at End of Period 1,012 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.47 $39.51 (1) AUV at End of Period $15.29 $30.47 Number of Accumulation Units Outstanding at End of Period 130,301 29,848 ING MFS RESEARCH AUV at Beginning of Period $19.55 $23.26 (1) AUV at End of Period $14.39 $19.55 Number of Accumulation Units Outstanding at End of Period 131,251 33,529 ING MFS TOTAL RETURN AUV at Beginning of Period $19.66 $20.14 (1) AUV at End of Period $18.29 $19.66 Number of Accumulation Units Outstanding at End of Period 311,824 91,026 ING PIMCO CORE BOND AUV at Beginning of Period $11.35 $10.95 (1) AUV at End of Period $12.08 $11.35 Number of Accumulation Units Outstanding at End of Period 529,440 160,007 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.51 $12.24 (1) AUV at End of Period $8.40 $11.51 Number of Accumulation Units Outstanding at End of Period 294,228 77,843 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.51 $11.49 (1) AUV at End of Period $7.93 $10.51 Number of Accumulation Units Outstanding at End of Period 160,814 36,288 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.04 $25.91 (1) AUV at End of Period $25.65 $26.04 Number of Accumulation Units Outstanding at End of Period 232,111 43,865 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.06 $22.47 (1) AUV at End of Period $18.76 $22.06 Number of Accumulation Units Outstanding at End of Period 151,476 29,036 ING VAN KAMPEN EQUITY GROWTH AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.79 Number of Accumulation Units Outstanding at End of Period 8,349 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.81 Number of Accumulation Units Outstanding at End of Period 14,613 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.56 $21.85 (1) AUV at End of Period $17.17 $20.56 Number of Accumulation Units Outstanding at End of Period 134,276 43,851 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.21 $24.47 (1) AUV at End of Period $25.74 $26.21 Number of Accumulation Units Outstanding at End of Period 33,005 2,487 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.60 Number of Accumulation Units Outstanding at End of Period 16,611 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.76 $10.11 (1) AUV at End of Period $5.21 $7.76 Number of Accumulation Units Outstanding at End of Period 34,246 3,796 ING VP MAGNACAP AUV at Beginning of Period $9.32 $10.11 (1) AUV at End of Period $7.03 $9.32 Number of Accumulation Units Outstanding at End of Period 31,709 6,879 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.30 $10.01 (1) AUV at End of Period $4.57 $8.30 Number of Accumulation Units Outstanding at End of Period 117,676 25,433 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.95 $8.34 (1) AUV at End of Period $5.12 $6.95 Number of Accumulation Units Outstanding at End of Period 100,549 15,369 INVESCO VIF HEALTH SCIENCES AUV at Beginning of Period $10.24 $10.00 (2) AUV at End of Period $7.58 $10.24 Number of Accumulation Units Outstanding at End of Period 94,313 1,482 INVESCO VIF LEISURE FUND AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.41 Number of Accumulation Units Outstanding at End of Period 24,347 INVESCO VIF FINANCIAL SERVICES AUV at Beginning of Period $9.34 $10.00 (2) AUV at End of Period $7.79 $9.34 Number of Accumulation Units Outstanding at End of Period 47,921 1,384 INVESCO VIF UTILITIES AUV at Beginning of Period $8.08 $10.00 (2) AUV at End of Period $6.31 $8.08 Number of Accumulation Units Outstanding at End of Period 30,198 -- JENNISON PORTFOLIO AUV at Beginning of Period $6.23 $7.19 (1) AUV at End of Period $4.20 $6.23 Number of Accumulation Units Outstanding at End of Period 69,927 28,394 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.88 $9.82 (1) AUV at End of Period $9.57 $9.88 Number of Accumulation Units Outstanding at End of Period 272,348 42,156 PIMCO STOCKSPLUS GROWTH & INCOME AUV at Beginning of Period $10.01 $10.99 (1) AUV at End of Period $7.82 $10.01 Number of Accumulation Units Outstanding at End of Period 76,765 28,122 PIONEER FUND VCT AUV at Beginning of Period $9.36 $10.00 (2) AUV at End of Period $7.41 $9.36 Number of Accumulation Units Outstanding at End of Period 91,408 -- PIONEER MID CAP VALUE AUV at Beginning of Period $10.70 $10.00 (2) AUV at End of Period $9.30 $10.70 Number of Accumulation Units Outstanding at End of Period 127,116 1,969 PROFUND VP BULL AUV at Beginning of Period $8.86 $10.00 (1) AUV at End of Period $6.60 $8.86 Number of Accumulation Units Outstanding at End of Period 16,669 1,491 PROFUND VP EUROPE 30 AUV at Beginning of Period $8.23 $10.05 (1) AUV at End of Period $5.99 $8.23 Number of Accumulation Units Outstanding at End of Period 5,164 901 PROFUND VP SMALL CAP AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $7.14 $9.39 Number of Accumulation Units Outstanding at End of Period 59,953 6,233 SP JENNISON INTERNATIONAL GROWTH AUV at Beginning of Period $5.37 $7.29 (1) AUV at End of Period $4.06 $5.37 Number of Accumulation Units Outstanding at End of Period 89,982 14,879 FOOTNOTES (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 2002 2001 ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 2.10 % AIM VI DENT DEMOGRAPHIC TRENDS AUV at Beginning of Period $10.98 $10.00 (2) AUV at End of Period $7.28 $10.98 Number of Accumulation Units Outstanding at End of Period 11,618 -- FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.75 Number of Accumulation Units Outstanding at End of Period 54,904 FIDELITY(R) VIP GROWTH AUV at Beginning of Period $9.24 (4) AUV at End of Period $6.31 Number of Accumulation Units Outstanding at End of Period 107,165 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.05 $16.27 (1) AUV at End of Period $9.40 $14.05 Number of Accumulation Units Outstanding at End of Period 63,802 21,990 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.05 $16.08 (1) AUV at End of Period $9.62 $14.05 Number of Accumulation Units Outstanding at End of Period 184,179 63,924 ING CAPITAL GUARDIAN LARGE CAP VALUE AUV at Beginning of Period $9.88 $10.51 (1) AUV at End of Period $7.37 $9.88 Number of Accumulation Units Outstanding at End of Period 916,295 261,939 ING CAPITAL GUARDIAN MANAGED GLOBAL AUV at Beginning of Period $16.41 $19.19 (1) AUV at End of Period $12.82 $16.41 Number of Accumulation Units Outstanding at End of Period 210,411 72,320 ING CAPITAL GUARDIAN SMALL CAP AUV at Beginning of Period $17.12 $17.51 (1) AUV at End of Period $12.50 $17.12 Number of Accumulation Units Outstanding at End of Period 350,649 77,139 ING DEVELOPING WORLD AUV at Beginning of Period $6.89 $7.32 (1) AUV at End of Period $6.02 $6.89 Number of Accumulation Units Outstanding at End of Period 87,622 52,358 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.43 $19.13 (1) AUV at End of Period $14.15 $17.43 Number of Accumulation Units Outstanding at End of Period 131,099 34,231 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.01 $9.46 (1) AUV at End of Period $7.12 $9.01 Number of Accumulation Units Outstanding at End of Period 492,026 76,525 ING GET FUND -- SERIES T AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GET FUND -- SERIES U AUV at Beginning of Period $10.00 AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING GOLDMAN SACHS INTERNET TOLLKEEPER AUV at Beginning of Period $7.58 $10.00 (1) AUV at End of Period $4.59 $7.58 Number of Accumulation Units Outstanding at End of Period 141,023 23,594 ING HARD ASSETS AUV at Beginning of Period $12.88 $15.16 (1) AUV at End of Period $12.71 $12.88 Number of Accumulation Units Outstanding at End of Period 43,248 2,531 ING INTERNATIONAL EQUITY AUV at Beginning of Period $8.37 $9.74 (3) AUV at End of Period $6.87 $8.37 Number of Accumulation Units Outstanding at End of Period 132,383 2,399 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.79 $9.64 (1) AUV at End of Period $6.94 $8.79 Number of Accumulation Units Outstanding at End of Period 584,691 164,770 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.25 $8.97 (1) AUV at End of Period $5.98 $8.25 Number of Accumulation Units Outstanding at End of Period 96,355 38,065 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.13 $22.86 (1) AUV at End of Period $13.94 $20.13 Number of Accumulation Units Outstanding at End of Period 132,556 41,070 ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of Period 6,369 ING JP MORGAN FLEMING SMALLCAP AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of Period 37,674 ING LIMITED MATURITY BOND AUV at Beginning of Period $17.36 $16.70 (1) AUV at End of Period $18.23 $17.36 Number of Accumulation Units Outstanding at End of Period 187,662 63,527 ING LIQUID ASSETS AUV at Beginning of Period $14.43 $14.34 (1) AUV at End of Period $14.33 $14.43 Number of Accumulation Units Outstanding at End of Period 514,409 261,606 ING MARSICO GROWTH AUV at Beginning of Period $14.53 $18.99 (1) AUV at End of Period $10.02 $14.53 Number of Accumulation Units Outstanding at End of Period 311,442 126,140 ING MERCURY FOCUS VALUE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.33 Number of Accumulation Units Outstanding at End of Period 15,878 ING MERCURY FUNDAMENTAL GROWTH AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.94 Number of Accumulation Units Outstanding at End of Period 8,896 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.25 $39.25 (1) AUV at End of Period $15.16 $30.25 Number of Accumulation Units Outstanding at End of Period 309,801 93,233 ING MFS RESEARCH AUV at Beginning of Period $19.40 $23.11 (1) AUV at End of Period $14.27 $19.40 Number of Accumulation Units Outstanding at End of Period 215,283 85,348 ING MFS TOTAL RETURN AUV at Beginning of Period $19.52 $20.00 (1) AUV at End of Period $18.14 $19.52 Number of Accumulation Units Outstanding at End of Period 687,305 203,036 ING PIMCO CORE BOND AUV at Beginning of Period $11.26 $10.88 (1) AUV at End of Period $11.98 $11.26 Number of Accumulation Units Outstanding at End of Period 836,451 221,684 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.49 $12.23 (1) AUV at End of Period $8.37 $11.49 Number of Accumulation Units Outstanding at End of Period 892,250 225,937 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.48 $11.47 (1) AUV at End of Period $7.91 $10.48 Number of Accumulation Units Outstanding at End of Period 294,205 136,482 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $25.70 $25.59 (1) AUV at End of Period $25.28 $25.70 Number of Accumulation Units Outstanding at End of Period 442,657 92,605 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $21.77 $22.19 (1) AUV at End of Period $18.50 $21.77 Number of Accumulation Units Outstanding at End of Period 425,112 107,272 ING VAN KAMPEN EQUITY GROWTH AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.78 Number of Accumulation Units Outstanding at End of Period 10,422 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.80 Number of Accumulation Units Outstanding at End of Period 40,258 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.39 $21.68 (1) AUV at End of Period $17.01 $20.39 Number of Accumulation Units Outstanding at End of Period 180,352 51,722 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $25.87 $24.17 (1) AUV at End of Period $25.38 $25.87 Number of Accumulation Units Outstanding at End of Period 77,757 7,350 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.59 Number of Accumulation Units Outstanding at End of Period 20,543 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.75 $10.11 (1) AUV at End of Period $5.20 $7.75 Number of Accumulation Units Outstanding at End of Period 68,491 6,269 ING VP MAGNACAP AUV at Beginning of Period $9.31 $10.11 (1) AUV at End of Period $7.02 $9.31 Number of Accumulation Units Outstanding at End of Period 41,229 10,474 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.29 $10.01 (1) AUV at End of Period $4.57 $8.29 Number of Accumulation Units Outstanding at End of Period 249,714 45,115 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.94 $8.34 (1) AUV at End of Period $5.11 $6.94 Number of Accumulation Units Outstanding at End of Period 138,853 46,282 INVESCO VIF HEALTH SCIENCES AUV at Beginning of Period $10.24 $10.00 (2) AUV at End of Period $7.57 $10.24 Number of Accumulation Units Outstanding at End of Period 151,077 466 INVESCO VIF LEISURE FUND AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.40 Number of Accumulation Units Outstanding at End of Period 40,592 INVESCO VIF FINANCIAL SERVICES AUV at Beginning of Period $9.33 $10.00 (2) AUV at End of Period $7.78 $9.33 Number of Accumulation Units Outstanding at End of Period 84,291 3,260 INVESCO VIF UTILITIES AUV at Beginning of Period $8.08 $10.00 (2) AUV at End of Period $6.30 $8.08 Number of Accumulation Units Outstanding at End of Period 52,671 -- JENNISON PORTFOLIO AUV at Beginning of Period $6.22 $7.19 (1) AUV at End of Period $4.19 $6.22 Number of Accumulation Units Outstanding at End of Period 265,344 70,772 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.84 $9.79 (1) AUV at End of Period $9.52 $9.84 Number of Accumulation Units Outstanding at End of Period 423,832 118,177 PIMCO STOCKSPLUS GROWTH & INCOME AUV at Beginning of Period $9.97 $10.95 (1) AUV at End of Period $7.79 $9.97 Number of Accumulation Units Outstanding at End of Period 218,962 61,575 PIONEER FUND VCT AUV at Beginning of Period $9.35 $10.00 (2) AUV at End of Period $7.39 $9.35 Number of Accumulation Units Outstanding at End of Period 57,294 -- PIONEER MID CAP VALUE AUV at Beginning of Period $10.70 $10.00 (2) AUV at End of Period $9.29 $10.70 Number of Accumulation Units Outstanding at End of Period 145,463 -- PROFUND VP BULL AUV at Beginning of Period $8.85 $10.00 (1) AUV at End of Period $6.59 $8.85 Number of Accumulation Units Outstanding at End of Period 23,783 1,814 PROFUND VP EUROPE 30 AUV at Beginning of Period $8.23 $10.05 (1) AUV at End of Period $5.98 $8.23 Number of Accumulation Units Outstanding at End of Period 17,650 -- PROFUND VP SMALL CAP AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $7.13 $9.39 Number of Accumulation Units Outstanding at End of Period 68,579 12,110 SP JENNISON INTERNATIONAL GROWTH AUV at Beginning of Period $5.36 $7.29 (1) AUV at End of Period $4.05 $5.36 Number of Accumulation Units Outstanding at End of Period 156,994 86,394 FOOTNOTES (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 - -------------------------------------------------------------------------------- APPENDIX B - -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS During the accumulation phase, you may allocate your premium payments and contract value to any of the investment portfolios available under this Contract. They are listed in this appendix. You bear the entire investment risk for amounts you allocate to any investment portfolio, and you may lose your principal. The investment results of the mutual funds (funds) are likely to differ significantly and there is no assurance that any of the funds will achieve their respective investment objectives. Shares of the funds will rise and fall in value and you could lose money by investing in the funds. Shares of the funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, the Federal Deposit Insurance Corporation or any other government agency. Except as noted, all funds are diversified, as defined under the Investment Company Act of 1940. Please refer to the fund prospectuses for additional information. Fund prospectuses may be obtained free of charge, from our Customer Service Center at the address and telephone number listed in the prospectus, by accessing the SEC's web site or by contacting the SEC Public Reference Room. Certain funds offered under the contracts have investment objectives and policies similar to other funds managed by the fund's investment adviser. The investment results of a fund may be higher or lower than those of other funds managed by the same adviser. There is no assurance and no representation is made that the investment results of any fund will be comparable to those of another fund managed by the same investment adviser.
LIST OF FUND NAME CHANGES FORMER FUND NAME CURRENT FUND NAME - ---------------------------------------------------- --------------------------------------- ING JP Morgan Fleming International Enhanced EAFE ING Julius Baer Foreign Portfolio Portfolio ING JP Morgan Fleming Small Cap Equity Portfolio ING JPMorgan Small Cap Equity Portfolio
FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING INVESTORS TRUST (FORMERLY THE GCG TRUST) - ----------------------------------------------------------------- ------------------------------------------------------------- ING AIM MID-CAP GROWTH PORTFOLIO (Class S) (formerly Strategic Seeks capital appreciation. The Portfolio seeks to meet its Equity Series) objective by investing, normally, at least 80% of its INVESTMENT ADVISER: Directed Services, Inc. assets in equity securities of mid-capitalization companies. INVESTMENT SUBADVISER: A I M Capital Management, Inc. - ----------------------------------------------------------------- ------------------------------------------------------------- ING ALLIANCE MID-CAP GROWTH PORTFOLIO Seeks long-term total return. The Portfolio invests (Class S) (formerly Capital Growth Series) primarily in common stocks of middle capitalization INVESTMENT ADVISER: Directed Services, Inc. companies. The Portfolio normally invests substantially all INVESTMENT SUBADVISER: Alliance Capital Management, L.P. of its assets in high-quality common stocks that Alliance expects to increase in value. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B1 ING AMERICAN FUNDS GROWTH PORTFOLIO Invests all of its assets in shares of the Growth Fund, a INVESTMENT ADVISER: ING Investments, LLC series of American Funds Insurance Series, a registered INVESTMENT SUBADVISER: Capital Research and Management open-end investment company. The Growth Fund seeks to make Company the shareholders' investment grow by investing primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The Growth Fund is designed for investors seeking long term capital appreciation through stocks. - ----------------------------------------------------------------- ------------------------------------------------------------- ING AMERICAN FUNDS GROWTH-INCOME PORTFOLIO Invests all of its assets in shares of the Growth-Income INVESTMENT ADVISER: ING Investments, LLC Fund, a series of American Funds Insurance Series, a INVESTMENT SUBADVISER: Capital Research and Management registered open-end investment company. The Growth-Income Company Fund seeks to make shareholders' investment grow and to provide shareholders with income over time by investing primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. The Growth-Income Fund is designed for investors seeking both capital appreciation and income. - ----------------------------------------------------------------- ------------------------------------------------------------- ING AMERICAN FUNDS INTERNATIONAL PORTFOLIO Invests all of its assets in shares of the International INVESTMENT ADVISER: ING Investments, LLC Fund, a series of American Funds Insurance Series, a INVESTMENT SUBADVISER: Capital Research and Management registered open-end investment company. The International Company Fund seeks to make shareholders' investment grow over time by investing primarily in common stocks of companies located outside the United States. The International Fund is designed for investors seeking capital appreciation through stocks. - ----------------------------------------------------------------- ------------------------------------------------------------- ING CAPITAL GUARDIAN LARGE CAP VALUE PORTFOLIO (Class S) Seeks long-term growth of capital and income. The Portfolio (formerly Large Cap Value Series) Manager seeks to achieve the Portfolio's investment INVESTMENT ADVISER: Directed Services, Inc. objective by investing, under normal market conditions, at INVESTMENT SUBADVISER: Capital Guardian Trust Company least 80% of its assets in equity and equity-related securities of companies with market capitalizations greater than $1 billion at the time of investment. - ----------------------------------------------------------------- ------------------------------------------------------------- ING CAPITAL GUARDIAN MANAGED GLOBAL PORTFOLIO (Class S) Seeks capital appreciation. Current income is only an (formerly Managed Global Series) incidental consideration. This portfolio is not INVESTMENT ADVISER: Directed Services, Inc. diversified. The Portfolio invests primarily in common INVESTMENT SUBADVISER: Capital Guardian Trust Company stocks traded in securities markets throughout the world. The Portfolio may invest up to 100% of its total assets in securities traded in securities markets outside the United States. The Portfolio generally invests at least 65% of its total assets in at least three different countries, one of which may be the United States. - ----------------------------------------------------------------- ------------------------------------------------------------- ING CAPITAL GUARDIAN SMALL CAP PORTFOLIO (Class S) (formerly Seeks long-term capital appreciation. The Portfolio invests Capital Guardian Small Cap Series) at least 80% of its assets in equity securities of small INVESTMENT ADVISER: Directed Services, Inc. capitalization ("small-cap") companies. INVESTMENT SUBADVISER: Capital Guardian Trust Company - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B2 ING DEVELOPING WORLD PORTFOLIO (Class S) Seeks capital appreciation. The Portfolio invests primarily (formerly Developing World Series) in the equity securities of companies in "emerging market INVESTMENT ADVISER: Directed Services, Inc. countries." The Portfolio normally invests in at least six INVESTMENT SUBADVISER: Baring International Investment emerging market countries with no more than 35% of its Limited assets in any one country, measured at the time of investment. - ----------------------------------------------------------------- ------------------------------------------------------------- ING EAGLE ASSET VALUE EQUITY PORTFOLIO Seeks capital appreciation. Dividend income is a secondary (Class S) (formerly Value Equity Series) objective. The Portfolio normally invests at least 80% of INVESTMENT ADVISER: Directed Services, Inc. its assets in equity securities of domestic and foreign INVESTMENT SUBADVISER: Eagle Asset Management, Inc. issuers that meet quantitative standards relating to financial soundness and high intrinsic value relative to price. - ----------------------------------------------------------------- ------------------------------------------------------------- ING FMRSM DIVERSIFIED MID-CAP PORTFOLIO Seeks long-term growth of capital. The Portfolio Manager (Class S) (formerly Diversified Mid-Cap Series) normally invests the Portfolio's assets primarily in common INVESTMENT ADVISER: Directed Services, Inc. stocks. The Portfolio Manager normally invests at least 80% INVESTMENT SUBADVISER: Fidelity Management & Research of the Portfolio's assets in securities of companies with Co. medium market capitalizations. - ----------------------------------------------------------------- ------------------------------------------------------------- ING GOLDMAN SACHS INTERNET Seeks long-term growth of capital. The TOLLKEEPERSM PORTFOLIO* (Service Portfolio invests, under normal Class) (formerly Internet Tollkeeper circumstances, at least 80% of its net Series) assets plus any borrowings for *Goldman Sachs Internet TollkeeperSM investment purposes (measured at time is a service mark of Goldman Sachs & of investment) in equity investments Co in "Internet Tollkeeper" companies, which are companies in the media, INVESTMENT ADVISER: telecommunications, technology and Directed Services, Inc. internet sectors, which provide INVESTMENT SUBADVISER:. access, infrastructure, content and Goldman Sachs Asset Management, L.P. services to internet companies and internet users. - ----------------------------------------------------------------- ------------------------------------------------------------- ING HARD ASSETS PORTFOLIO (Class S) A nondiversified Portfolio that seeks long-term capital (formerly Hard Assets Series) appreciation. The Portfolio normally invests at least 80% INVESTMENT ADVISER: Directed Services, Inc. of its assets in the equities of producers of commodities. INVESTMENT SUBADVISER: Baring International Investment Limited - ----------------------------------------------------------------- ------------------------------------------------------------- ING INTERNATIONAL PORTFOLIO (Class S) Seeks long-term growth of capital. Under normal conditions, (formerly International Equity Series) the Portfolio invests at least 80% of its net assets and INVESTMENT ADVISER: Directed Services, Inc. borrowings for investment purposes in equity securities of INVESTMENT SUBADVISER: ING Investments, LLC issuers located in countries outside of the United States. - ----------------------------------------------------------------- ------------------------------------------------------------- ING JANUS GROWTH AND INCOME PORTFOLIO Seeks long-term capital growth and current income. The (Class S) (formerly Janus Growth and Income Series) Portfolio normally emphasizes investments in common stocks. INVESTMENT ADVISER: Directed Services, Inc. It will normally invest up to 75% of its assets in equity INVESTMENT SUBADVISER: Janus Capital Management, LLC securities selected primarily for their growth potential, and at least 25% of its assets in securities the Portfolio Manager believes have income potential. Because of this investment strategy, the Portfolio is not designed for investors who need consistent income. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B3 ING JANUS SPECIAL EQUITY PORTFOLIO (Class S) A nondiversified Portfolio that seeks capital appreciation. (formerly Special Situations Series) The Portfolio invests, under normal circumstances, at least INVESTMENT ADVISER: Directed Services, Inc. 80% of its net assets (plus borrowings for investment INVESTMENT SUBADVISER: Janus Capital Management, LLC purposes) in equity securities with the potential for long-term growth of capital. - ----------------------------------------------------------------- ------------------------------------------------------------- ING JENNISON EQUITY OPPORTUNITIES PORTFOLIO (Class S) (formerly Seeks long-term capital growth. The Portfolio normally Equity Opportunity Series) invests at least 80% of its net assets (plus any borrowings INVESTMENT ADVISER: Directed Services, Inc. for investment purposes) in attractively valued equity INVESTMENT SUBADVISER: Jennison Associates, LLC securities of companies with current or emerging earnings growth the Portfolio Manager believes to be not fully appreciated or recognized by the market. - ----------------------------------------------------------------- ------------------------------------------------------------- ING JPMORGAN SMALL CAP EQUITY PORTFOLIO (Class S) (formerly A nondiversified Portfolio that seeks capital growth over ING JP Morgan Fleming Small Cap Equity Portfolio) the long term. Under normal market conditions, the INVESTMENT ADVISER: Directed Services, Inc. Portfolio invests at least 80% of its total assets in INVESTMENT SUBADVISER: J.P. Morgan Investment equity securities of small-cap companies. Management, Inc. - ----------------------------------------------------------------- ------------------------------------------------------------- ING JULIUS BAER FOREIGN PORTFOLIO (Class S) A nondiversified Portfolio that seeks total return from (formerly ING JPMorgan Fleming International Enhanced EAFE long-term capital growth and income. Under normal Portfolio) conditions, the Portfolio will invest at least 80% of its INVESTMENT ADVISER: Directed Services, Inc. total assets in a broad portfolio of equity securities of INVESTMENT SUBADVISER: Julius Baer Investment established foreign companies of various sizes, including Management, Inc. foreign subsidiaries of U.S. companies, based in countries that are represented in the Morgan Stanley Capital International, Europe, Australia and Far East Index (the "EAFE Index"). - ----------------------------------------------------------------- ------------------------------------------------------------- ING LIMITED MATURITY BOND PORTFOLIO (Class S) Seeks highest current income consistent with low risk to (formerly Limited Maturity Bond Series) principal and liquidity. Secondarily seeks to enhance total INVESTMENT ADVISER: Directed Services, Inc. return when market factors indicate capital appreciation INVESTMENT SUBADVISER: ING Investment Management, LLC may be available without significant risk to principal. The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets (plus borrowing for investment purposes) in a diversified portfolio of bonds that are primarily limited maturity debt securities. - ----------------------------------------------------------------- ------------------------------------------------------------- ING LIQUID ASSETS PORTFOLIO (Class S) Seeks high level of current income consistent with the (formerly Liquid Asset Series) preservation of capital and liquidity. The Portfolio INVESTMENT ADVISER: Directed Services, Inc. Manager strives to maintain a stable $1 per share net asset INVESTMENT SUBADVISER: ING Investment Management, LLC value and its investment strategy focuses on safety of principal, liquidity and yield, in order of importance, to achieve this goal. - ----------------------------------------------------------------- ------------------------------------------------------------- ING MARSICO GROWTH PORTFOLIO (Class S) Seeks capital appreciation. The Portfolio invests primarily (formerly Growth Series) in equity securities selected for their growth potential. INVESTMENT ADVISER: Directed Services, Inc. The Portfolio may invest in companies of any size, from INVESTMENT SUBADVISER: Marsico Capital Management, LLC larger, well-established companies to smaller, emerging growth companies. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B4 ING MERCURY FOCUS VALUE PORTFOLIO (Class S) Seeks long-term growth of capital. The Portfolio tries to (formerly Focus Value Series) achieve its investment objective by investing primarily in INVESTMENT ADVISER: Directed Services, Inc. a diversified portfolio consisting of equity securities INVESTMENT SUBADVISER: Mercury Advisors that the Portfolio Manager believes are undervalued relative to its assessment of the current or prospective condition of the issuer. - ----------------------------------------------------------------- ------------------------------------------------------------- ING MERCURY FUNDAMENTAL GROWTH PORTFOLIO Seeks long-term growth of capital. The Portfolio invests in (Class S) (formerly Fundamental Growth Series) a diversified portfolio consisting primarily of common INVESTMENT ADVISER: Directed Services, Inc. stocks. The Portfolio will generally invest at least 65% of INVESTMENT SUBADVISER: Mercury Advisors its total assets in the following equity securities: common stock, convertible preferred stock, securities convertible into common stock and rights and warrants to subscribe to common stock. - ----------------------------------------------------------------- ------------------------------------------------------------- ING MFS MID-CAP GROWTH PORTFOLIO (Class S) A nondiversified Portfolio that seeks long-term growth of (formerly Mid-Cap Growth Series) capital. The Portfolio normally invests at least 80% of its INVESTMENT ADVISER: Directed Services, Inc. net assets in common stocks and related securities (such as INVESTMENT SUBADVISER: Massachusetts Financial Services preferred stocks, convertible securities and depositary Company receipts) of companies with medium market capitalizations (or "mid-cap companies") which the Portfolio Manager believes have above-average growth potential. - ----------------------------------------------------------------- ------------------------------------------------------------- ING MFS RESEARCH PORTFOLIO (Class S) Seeks long-term growth of capital and future income. The (formerly Research Series) Portfolio normally invests at least 80% of its net assets INVESTMENT ADVISER: Directed Services, Inc. in common stocks and related securities (such as preferred INVESTMENT SUBADVISER: Massachusetts Financial Services stocks, convertible securities and depositary receipts). Company The Portfolio focuses on companies that the Portfolio Manager believes have favorable prospects for long-term growth, attractive valuations based on current and expected earnings or cash flow, dominant or growing market share and superior management. - ----------------------------------------------------------------- ------------------------------------------------------------- ING MFS TOTAL RETURN PORTFOLIO (Class S) Seeks above-average income (compared to a portfolio (formerly Total Return Series) entirely invested in equity securities) consistent with the INVESTMENT ADVISER: Directed Services, Inc. prudent employment of capital. Secondarily seeks reasonable INVESTMENT SUBADVISER: Massachusetts Financial Services opportunity for growth of capital and income. The Portfolio Company is a "balanced fund," and invests in a combination of equity and fixed income securities. - ----------------------------------------------------------------- ------------------------------------------------------------- ING PIMCO CORE BOND PORTFOLIO (Class S) Seeks maximum total return, consistent with preservation of (formerly Core Bond Series) capital and prudent investment management. The Portfolio is INVESTMENT ADVISER: Directed Services, Inc. diversified and seeks to achieve its investment objective INVESTMENT SUBADVISER: Pacific Investment Management by investing under normal circumstances at least 80% of its Company, LLC net assets (plus borrowings for investment purposes) in a diversified portfolio of fixed income instruments of varying maturities. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B5 ING SALOMON BROTHERS ALL CAP PORTFOLIO A nondiversified Portfolio that seeks capital appreciation (Class S) (formerly All Cap Series) through investment in securities which the Subadviser INVESTMENT ADVISER: Directed Services, Inc. believes have above-average capital appreciation potential. INVESTMENT SUBADVISER: Salomon Brothers Asset The Portfolio invests primarily in common stocks and common Management, Inc. stock equivalents, such as preferred stocks and securities convertible into common stocks, of companies the Portfolio Manager believes are undervalued in the marketplace. - ----------------------------------------------------------------- ------------------------------------------------------------- ING SALOMON BROTHERS INVESTORS PORTFOLIO (Class S) (formerly Seeks long-term growth of capital. Secondarily seeks Investors Series) current income. The Portfolio invests primarily in equity INVESTMENT ADVISER: Directed Services, Inc. securities of U.S. companies. The Portfolio may also invest INVESTMENT SUBADVISER: Salomon Brothers Asset in other equity securities. To a lesser degree, the Management, Inc. Portfolio invests in income producing securities such as debt securities. - ----------------------------------------------------------------- ------------------------------------------------------------- ING T. ROWE PRICE CAPITAL APPRECIATION PORTFOLIO (Class S) Seeks, over the long-term, a high total investment return, (formerly Fully Managed Series) consistent with the preservation of capital and prudent INVESTMENT ADVISER: Directed Services, Inc. investment risk. The Portfolio pursues an active asset INVESTMENT SUBADVISER: T. Rowe Price Associates, Inc. allocation strategy whereby investments are allocated among three asset classes - equity securities, debt securities and money market instruments. - ----------------------------------------------------------------- ------------------------------------------------------------- ING T. ROWE PRICE EQUITY INCOME PORTFOLIO (Class S) (formerly Seeks substantial dividend income as well as long-term Equity Income Series) growth of capital. The Portfolio normally invests at least INVESTMENT ADVISER: Directed Services, Inc. 80% of its assets in common stocks, with 65% in the common INVESTMENT SUBADVISER: T. Rowe Price Associates, Inc. stocks of well-established companies paying above-average dividends. The Portfolio may also invest in convertible securities, warrants and preferred stocks. - ----------------------------------------------------------------- ------------------------------------------------------------- ING UBS U.S. BALANCED PORTFOLIO (Class S) Seeks to maximize total return over the long term by (formerly Asset Allocation Growth Series) allocating its assets among stocks, bonds, short-term INVESTMENT ADVISER: Directed Services, Inc. instruments and other investments. The Portfolio Manager INVESTMENT SUBADVISER: UBS Global Asset Management allocates the Portfolio's assets among the following (Americas) Inc. classes, or types, of investments: stocks, bonds, and short-term money market debt obligations. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VAN KAMPEN EQUITY GROWTH PORTFOLIO (Class S) (formerly Seeks long-term capital appreciation. The Portfolio Manager Equity Growth Series) seeks to maximize long-term capital appreciation by INVESTMENT ADVISER: Directed Services, Inc. investing primarily in growth-oriented equity securities of INVESTMENT SUBADVISER: Van Kampen large-capitalization U.S. and, to a limited extent, foreign companies that are listed on U.S. exchanges or traded in U.S. markets. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VAN KAMPEN GLOBAL FRANCHISE PORTFOLIO (Class S) (formerly A nondiversified Portfolio that seeks long-term capital Global Franchise Series) appreciation. The Portfolio Manager seeks long-term capital INVESTMENT ADVISER: Directed Services, Inc. appreciation by investing primarily in equity securities of INVESTMENT SUBADVISER: Van Kampen issuers located throughout the world that it believes have, among other things, resilient business franchises and growth potential. The Portfolio may invest of in the securities of companies of any size. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B6 ING VAN KAMPEN GROWTH AND INCOME PORTFOLIO (Class S) (formerly Seeks long-term growth of capital and income. Under normal Van Kampen Growth and Income Series) market conditions, the Portfolio Manager seeks to achieve INVESTMENT ADVISER: Directed Services, Inc. the Portfolio's investment objective by investing primarily INVESTMENT SUBADVISER: Van Kampen in what it believes to be income-producing equity securities, including common stocks and convertible securities; although investments are also made in non-convertible preferred stocks and debt securities rated "investment grade," which are securities rated within the four highest grades assigned by Standard & Poor's ("S&P") or by Moody's Investors Service, Inc. ("Moody's"). - ----------------------------------------------------------------- ------------------------------------------------------------- ING VAN KAMPEN REAL ESTATE PORTFOLIO A nondiversified Portfolio that seeks capital appreciation. (Class S) (formerly Real Estate Series) Secondarily seeks current income. The Portfolio invests at INVESTMENT ADVISER: Directed Services, Inc. least 80% of its assets in equity securities of companies INVESTMENT SUBADVISER: Van Kampen in the U.S. real estate industry that are listed on national exchanges or the National Association of Securities Dealers Automated Quotation System ("NASDAQ"). - ----------------------------------------------------------------- ------------------------------------------------------------- ING PARTNERS, INC. - ----------------------------------------------------------------- ------------------------------------------------------------- ING JPMORGAN FLEMING INTERNATIONAL PORTFOLIO (Class S) Seeks long-term growth of capital. Invests primarily (at INVESTMENT ADVISER: ING Life Insurance and Annuity least 65% of total assets) in the equity securities of Company foreign companies that the subadviser believes have high INVESTMENT SUBADVISER: J.P. Morgan Fleming Asset Management growth potential. Will normally invest in securities of at (London) Ltd. least three different countries other than the U.S. and will invest in both developed and developing markets. - ----------------------------------------------------------------- ------------------------------------------------------------- ING SALOMON BROTHERS AGGRESSIVE GROWTH PORTFOLIO Seeks long-term growth of capital. Invests primarily (at (Service Class) least 80% of net assets under normal circumstances) in INVESTMENT ADVISER: ING Life Insurance and Annuity common stocks and related securities, such as preferred Company stocks, convertible securities and depositary receipts, of INVESTMENT SUBADVISER: Salomon Brothers Asset emerging growth companies. Management, Inc. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VARIABLE INSURANCE TRUST - ----------------------------------------------------------------- ------------------------------------------------------------- ING VP WORLDWIDE GROWTH PORTFOLIO Seeks long-term capital appreciation. A nondiversified INVESTMENT ADVISER: ING Investments, LLC Portfolio that under normal conditions, invests at least 65% of net assets in equity securities of issuers located in at least three countries, one of which may be the U.S. Generally invests at least 75% of total assets in common and preferred stocks, warrants and convertible securities. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B7 ING VARIABLE PORTFOLIOS, INC. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VP BOND PORTFOLIO (Class S) Seeks to maximize total return as is consistent with INVESTMENT ADVISER: ING Investments, LLC reasonable risk, through investment in a diversified INVESTMENT SUBADVISER: Aeltus Investment portfolio consisting of debt securities. Under normal Management, Inc. market conditions, invests at least 80% of net assets in high-grade corporate bonds, mortgage-related and other asset-backed securities, and securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The Portfolio may invest up to 15% of total assets in high-yield instruments and up to 25% of total assets in foreign debt securities. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VP INDEX PLUS LARGECAP PORTFOLIO Seeks to outperform the total return performance of the (Class S) Standard & Poor's 500 Composite Index (S&P 500), while INVESTMENT ADVISER: ING Investments, LLC maintaining a market level of risk. Invests at least 80% of INVESTMENT SUBADVISER: Aeltus Investment net assets in stocks included in the S&P 500. The Management, Inc. subadviser's objective is to overweight those stocks in the S&P 500 that they believe will outperform the index and underweight or avoid those stocks in the S&P 500 that they believe will underperform the index. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VARIABLE PRODUCTS TRUST - ----------------------------------------------------------------- ------------------------------------------------------------- ING VP GROWTH OPPORTUNITIES PORTFOLIO Seeks long-term growth of capital. Invests primarily in (Service Class) common stock of U.S. companies that the portfolio managers INVESTMENT ADVISER: ING Investments, LLC feel have above average prospects for growth. Under normal market conditions, invests at least 65% of total assets in securities purchased on the basis of the potential for capital appreciation. These securities may be from large-cap, mid-cap or small-cap companies. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VP MAGNACAP PORTFOLIO (Service Class) Seeks growth of capital, with dividend income as a INVESTMENT ADVISER: ING Investments, LLC secondary consideration. Normally invests at least 80% of assets in common stocks of large companies, which are those included in the 500 largest U.S. companies, as measured by total revenues, net assets, cash flow or earnings, or the 1,000 largest companies as measured by equity market capitalization. - ----------------------------------------------------------------- ------------------------------------------------------------- ING VP SMALLCAP OPPORTUNITIES PORTFOLIO Seeks long-term capital appreciation. Normally invests at (Service Class) least 80% of assets in the common stock of smaller, INVESTMENT ADVISER: ING Investments, LLC lesser-known U.S. companies that are believed to have above average prospects for growth. For this Portfolio, smaller companies are those with market capitalizations that fall within the range of companies in the Russell 2000 Index. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B8 AIM VARIABLE INSURANCE FUNDS - ----------------------------------------------------------------- ------------------------------------------------------------- AIM V.I. DENT DEMOGRAPHIC TRENDS FUND (Series II) Seeks long-term growth of capital. Seeks to meet its INVESTMENT ADVISER: A I M Advisors, Inc. objective by investing in securities of companies that are INVESTMENT SUBADVISER: H.S. Dent Advisors, Inc. likely to benefit from changing demographic, economic and lifestyle trends. These securities may include common stocks, convertible bonds, convertible preferred stocks and warrants of companies within a broad range of market capitalizations. - ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS PORTFOLIO - ----------------------------------------------------------------- ------------------------------------------------------------- FIDELITY(R)VIP EQUITY-INCOME PORTFOLIO (Service Seeks reasonable income. Also considers the potential for Class 2) capital appreciation. Seeks to achieve a yield which INVESTMENT ADVISER: Fidelity Management & Research exceeds the composite yield on the securities comprising Co. the Standard & Poor's 500 Index. Normally invests at least INVESTMENT SUBADVISER: Subadviser: FMR Co., Inc. 80% of total assets in income-producing equity securities (which tends to lead to investments in large cap "value" stocks). - ----------------------------------------------------------------- ------------------------------------------------------------- FIDELITY(R)VIP GROWTH PORTFOLIO (Service Class 2) Seeks to achieve capital appreciation. Normally invests INVESTMENT ADVISER: Fidelity Management & Research primarily in common stocks of companies the investment Co. adviser believes have above-average growth potential (often INVESTMENT SUBADVISER: Subadviser: FMR Co., Inc. called "growth" stocks). - ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. - ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- FINANCIAL SERVICES FUND Seeks capital growth. The Fund normally invests at least INVESTMENT ADVISER: INVESCO Variable Investment Funds, Inc. 80% of its net assets in the equity securities and INVESTMENT SUBADVISER: INVESCO Funds Group, Inc. equity-related instruments of companies involved in the financial services sector. These companies include, but are not limited to, banks (regional and money centers), insurance companies (life, property and casualty, and multi-line), investment and miscellaneous industries (asset managers, brokerage firms, and government sponsored agencies) and suppliers to financial services companies. At any given time, 20% of the Fund's assets is not required to be invested in the sector. In general, the Fund emphasizes companies that INVESCO believes are strongly managed and will generate above-average long-term capital appreciation. - ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- HEALTH SCIENCES FUND Seeks capital growth by normally investing at least 80% of INVESTMENT ADVISER: INVESCO Variable Investment Funds, Inc. its net assets in the equity securities and equity-related INVESTMENT SUBADVISER: INVESCO Funds Group, Inc. instruments of companies that develop, produce, or distribute products or services related to health care. These companies include, but are not limited to, medical equipment or supplies, pharmaceuticals, biotechnology, and health care providers and services companies. At any given time, 20% of the Fund's assets is not required to be invested in the sector. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B9 INVESCO VIF-- LEISURE FUND Seeks capital growth. The Fund normally invests at least INVESTMENT ADVISER: INVESCO Variable Investment Funds, Inc. 80% of its net assets in the equity securities and INVESTMENT SUBADVISER: INVESCO Funds Group, Inc. equity-related instruments of companies engaged in the design, production, and distribution of products related the leisure activities. These industries include, but are not limited to, hotels/gaming, publishing, advertising, beverages, audio/video, broadcasting-radio/TV, cable & satellite operators, cable & satellite programmers, motion pictures & TV, recreation services/entertainment, retail, and toys. At any given time, 20% of the Fund's assets is not required to be invested in the sector. - ----------------------------------------------------------------- ------------------------------------------------------------- INVESCO VIF-- UTILITIES FUND Seeks capital growth. It also seeks current income. The INVESTMENT ADVISER: INVESCO Variable Investment Funds, Inc. Fund normally invests at least 80% of its net assets in the INVESTMENT SUBADVISER: INVESCO Funds Group, Inc. equity securities and equity-related instruments of companies engaged in utilities-related industries. These include, but are not limited to, companies that produce, generate, transmit, or distribute natural gas or electricity, as well as in companies that provide telecommunications services, including local, long distance and wireless. A portion of the Fund's assets are not required to be invested in the sector. - ----------------------------------------------------------------- ------------------------------------------------------------- LIBERTY VARIABLE INSURANCE TRUST - ----------------------------------------------------------------- ------------------------------------------------------------- COLONIAL SMALL CAP VALUE FUND (CLASS B) Seeks long-term growth by investing primarily in small INVESTMENT ADVISER: Columbia Management capitalization equities. Advisers, Inc. - ----------------------------------------------------------------- ------------------------------------------------------------- PIMCO VARIABLE INSURANCE TRUST - ----------------------------------------------------------------- ------------------------------------------------------------- PIMCO HIGH YIELD PORTFOLIO Seeks maximum total return, consistent with INVESTMENT ADVISER: Pacific Investment preservation ofcapital and prudent investment management. Management Co. - ----------------------------------------------------------------- ------------------------------------------------------------- PIMCO STOCKSPLUS GROWTH AND INCOME PORTFOLIO Seeks total return which exceeds that of the S&P 500. INVESTMENT ADVISER: Pacific Investment Management Co. - ----------------------------------------------------------------- ------------------------------------------------------------- PIONEER VARIABLE CONTRACTS TRUST - ----------------------------------------------------------------- ------------------------------------------------------------- PIONEER FUND VCT PORTFOLIO (Class II) Seeks reasonable income and capital growth. Invests in a INVESTMENT ADVISER: Pioneer Investment Management, Inc. broad list of carefully selected, reasonably priced securities rather than in securities whose prices reflect a premium resulting from their current market popularity. Invests the major portion of its assets in equity securities, primarily of U.S. issuers. - ----------------------------------------------------------------- ------------------------------------------------------------- Landmark-###### B10 PIONEER MID CAP VALUE VCT PORTFOLIO (Class II) Seeks capital appreciation by investing in a diversified INVESTMENT ADVISER: Pioneer Investment Management, Inc. portfolio of securities consisting primarily of common stocks. Normally, invests at least 80% of total assets in equity securities of mid-size companies, that is, companies with market values within the range of market values of companies included in the Russell Midcap(R) Value Index. - ----------------------------------------------------------------- ------------------------------------------------------------- PRO FUNDS VP - ----------------------------------------------------------------- ------------------------------------------------------------- PROFUND VP BULL Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors, LLC that correspond to the daily performance of the S&P 500 Index. - ----------------------------------------------------------------- ------------------------------------------------------------- PROFUND VP EUROPE 30 Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors, LLC that correspond to the daily performance of the ProFunds Europe 30 Index. - ----------------------------------------------------------------- ------------------------------------------------------------- PROFUND VP RISING RATES OPPORTUNITY Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors, LLC that correspond to one and one-quarter times (125%) the inverse (opposite) of the daily price movement of the most recently issued 30-year U.S. Treasury Bond ("Long Bond"). - ----------------------------------------------------------------- ------------------------------------------------------------- PROFUND VP SMALL-CAP Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors, LLC that correspond to the daily performance of the Russell 2000 Index. - ----------------------------------------------------------------- ------------------------------------------------------------- PRUDENTIAL SERIES FUND, INC. - ----------------------------------------------------------------- ------------------------------------------------------------- JENNISON PORTFOLIO (Class II) Seeks to achieve long-term growth of capital. Invests INVESTMENT ADVISER: Prudential Investments, LLC primarily in equity securities of major, established INVESTMENT SUBADVISER: Jennison Associates, LLC corporations that the investment adviser believes offer above-average growth prospects. May invest up to 30% of total assets in foreign securities. Normally invests 65% of total assets in common stocks and preferred stocks of companies with capitalization in excess of $1 billion. - ----------------------------------------------------------------- ------------------------------------------------------------- SP JENNISON INTERNATIONAL GROWTH PORTFOLIO (Class II) Seeks long-term growth of capital. Invests in INVESTMENT ADVISER: Prudential Investments, LLC equity-related securities of foreign issuers that the INVESTMENT SUBADVISER: Jennison Associates, LLC subadviser thinks will increase in value over a period of years. Invests primarily in the common stock of large and medium-sized foreign companies. Under normal circumstances, invests at least 65% of total assets in common stock of foreign companies operating or based in at least five different countries. - ----------------------------------------------------------------- -------------------------------------------------------------
Landmark-###### B11 - -------------------------------------------------------------------------------- APPENDIX C - -------------------------------------------------------------------------------- FIXED ACCOUNT II Fixed Account II ("Fixed Account") is an optional fixed interest allocation offered during the accumulation phase of your variable annuity contract between you and ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we" or "our"). The Fixed Account, which is a segregated asset account of ING USA, provides a means for you to invest on a tax--deferred basis and earn a guaranteed interest for guaranteed interest periods (Fixed Interest Allocation(s)). We will credit your Fixed Interest Allocation(s) with a fixed rate of interest. We currently offer Fixed Interest Allocations with guaranteed interest periods of 5, 7 and 10 years. In addition, we may offer DCA Fixed Interest Allocations, which are 6--month and 1--year Fixed Interest Allocations available exclusively in connection with our dollar cost averaging program. We may offer additional guaranteed interest periods in some or all states, may not offer all guaranteed interest periods on all contracts or in all states and the rates for a given guaranteed interest period may vary among contracts. We set the interest rates periodically. We may credit a different interest rate for each interest period. The interest you earn in the Fixed Account as well as your principal is guaranteed by ING USA, as long as you do not take your money out before the maturity date for the applicable interest period. If you take your money out from a Fixed Interest Allocation more than 30 days before the applicable maturity date, we will apply a market value adjustment ("Market Value Adjustment"). A Market Value Adjustment could increase or decrease your contract value and/or the amount you take out. A surrender charge may also apply to withdrawals from your contract. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. For contracts sold in some states, not all Fixed Interest Allocations are available. You have a right to return a contract for a refund as described in the prospectus. THE FIXED ACCOUNT You may allocate premium payments and transfer your Contract value to the guaranteed interest periods of the Fixed Account during the accumulation period as described in the prospectus. Every time you allocate money to the Fixed Account, we set up a Fixed Interest Allocation for the guaranteed interest period you select. We will credit your Fixed Interest Allocation with a guaranteed interest rate for the interest period you select, so long as you do not withdraw money from that Fixed Interest Allocation before the end of the guaranteed interest period. Each guaranteed interest period ends on its maturity date which is the last day of the month in which the interest period is scheduled to expire. Your Contract value in the Fixed Account is the sum of your Fixed Interest Allocations and the interest credited as adjusted for any withdrawals, transfers or other charges we may impose, including any Market Value Adjustment. Your Fixed Interest Allocation will be credited with the guaranteed interest rate in effect for the guaranteed interest period you selected when we receive and accept your premium or reallocation of Contract value. We will credit interest daily at a rate that yields the quoted guaranteed interest rate. If you surrender, withdraw, transfer or annuitize your investment in a Fixed Interest Allocation more than 30 days before the end of the guaranteed interest period, we will apply a Market Value Adjustment to the transaction. A Market Value Adjustment could increase or decrease the amount you surrender, withdraw, transfer or annuitize, depending on current interest rates at the time of the transaction. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. GUARANTEED INTEREST RATES Each Fixed Interest Allocation will have an interest rate that is guaranteed as long as you do not take your money out until its maturity date. We do not have a specific formula for establishing the guaranteed interest rates for the different guaranteed interest periods. We determine guaranteed interest rates at our sole discretion. We cannot predict the level of future interest rates but no Fixed Interest Allocation will ever have Landmark-###### C1 a guaranteed interest rate declared of less than 3% per year. For more information see the prospectus for Fixed Account II TRANSFERS FROM A FIXED INTEREST ALLOCATION You may transfer your Contract value in a Fixed Interest Allocation to one or more new Fixed Interest Allocations with new guaranteed interest periods, or to any of the subaccounts of ING USA's Separate Account B as described in the prospectus on the maturity date of a guaranteed interest period. The minimum amount that you can transfer to or from any Fixed Interest Allocation is $100. Transfers from a Fixed Interest Allocation may be subject to a Market Value Adjustment. If you have a special Fixed Interest Allocation that was offered exclusively with our dollar cost averaging program, cancelling dollar cost averaging will cause a transfer of the entire Contract value in such Fixed Interest Allocation to the Liquid Assets subaccount, and such a transfer will be subject to a Market Value Adjustment. Please be aware that the benefit we pay under certain optional benefit riders will be adjusted by any transfers you make to and from the Fixed Interest Allocations during specified periods while the rider is in effect. See "Optional Riders" in the prospectus. WITHDRAWALS FROM A FIXED INTEREST ALLOCATION During the accumulation phase, you may withdraw a portion of your Contract value in any Fixed Interest Allocation. You may make systematic withdrawals of only the interest earned during the prior month, quarter or year, depending on the frequency chosen, from a Fixed Interest Allocation under our systematic withdrawal option. A withdrawal from a Fixed Interest Allocation may be subject to a Market Value Adjustment and a contract surrender charge. Be aware that withdrawals may have federal income tax consequences, including a 10% penalty tax, as well as state income tax consequences. Please be aware that the benefit we pay under any of the optional benefit riders will be reduced by any withdrawals you made from the Fixed Interest Allocations during the period while the rider is in effect. See "Optional Riders" in the prospectus. MARKET VALUE ADJUSTMENT A Market Value Adjustment may decrease, increase or have no effect on your Contract value. We will apply a Market Value Adjustment (i) whenever you withdraw or transfer money from a Fixed Interest Allocation (unless made within 30 days before the maturity date of the applicable guaranteed interest period, or under the systematic withdrawal or dollar cost averaging program) and (ii) if on the annuity start date a guaranteed interest period for any Fixed Interest Allocation does not end on or within 30 days of the annuity start date. A Market Value Adjustment may be positive, negative or result in no change. In general, if interest rates are rising, you bear the risk that any Market Value Adjustment will likely be negative and reduce your Contract value. On the other hand, if interest rates are falling, it is more likely that you will receive a positive Market Value Adjustment that increases your Contract value. In the event of a full surrender, transfer or annuitization from a Fixed Interest Allocation, we will add or subtract any Market Value Adjustment from the amount surrendered, transferred or annuitized. In the event of a partial withdrawal, transfer or annuitization, we will add or subtract any Market Value Adjustment from the total amount withdrawn, transferred or annuitized in order to provide the amount requested. If a negative Market Value Adjustment exceeds your Contract value in the Fixed Interest Allocation, we will consider your request to be a full surrender, transfer or annuitization of the Fixed Interest Allocation. CONTRACT VALUE IN THE FIXED INTEREST ALLOCATIONS On the contract date, the Contract value in any Fixed Interest Allocation in which you are invested is equal to the portion of the initial premium paid and designated for allocation to the Fixed Interest Allocation. On each business day after the contract date, we calculate the amount of Contract value in each Fixed Interest Allocation as follows: Landmark C2 (1) We take the Contract value in the Fixed Interest Allocation at the end of the preceding business day. (2) We credit a daily rate of interest on (1) at the guaranteed rate since the preceding business day. (3) We add (1) and (4) We subtract from (3) any transfers from that Fixed Interest Allocation. (5) We subtract from (4) any withdrawals, and then subtract any contract fees (including any rider charges) and premium taxes. Additional premium payments and transfers allocated to the Fixed Account will be placed in a new Fixed Interest Allocation. The Contract value on the date of allocation will be the amount allocated. Several examples which illustrate how the Market Value Adjustment works are included in the prospectus for the Fixed Account CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value of amounts allocated to the Fixed Account will fluctuate daily based on the interest credited to Fixed Interest Allocations, any Market Value Adjustment, and any surrender charge. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your Contract value, then we adjust for any Market Value Adjustment, and then we deduct any surrender charge, any charge for premium taxes, the annual contract administrative fee (unless waived), and any optional benefit rider charge, and any other charges incurred but not yet deducted. DOLLAR COST AVERAGING FROM FIXED INTEREST ALLOCATIONS You may elect to participate in our dollar cost averaging program if you have at least $1,200 of Contract value in Fixed Account Interest Allocations with a guaranteed interest period of 1 year or less. The Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other Fixed Interest Allocations or contract investment portfolio subaccounts selected by you. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. You elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. You may change the transfer amount once each contract year. Transfers from a Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. We may in the future offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program or otherwise modify, suspend or terminate this program. Of course, such change will not affect any dollar cost averaging programs in operation at the time. SUSPENSION OF PAYMENTS We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. MORE INFORMATION See the prospectus for Fixed Account II. - -------------------------------------------------------------------------------- APPENDIX D - -------------------------------------------------------------------------------- FIXED INTEREST DIVISION A Fixed Interest Division option is available through the group and individual deferred variable annuity contracts offered by ING USA Annuity and Life Insurance Company. The Fixed Interest Division is part of the ING USA General Account. Interests in the Fixed Interest Division have not been registered under the Securities Act of 1933, and neither the Fixed Interest Division nor the General Account are registered under the Investment Company Act of 1940. Interests in the Fixed Interest Division are offered in certain states through an Offering Brochure, dated May 1, 2003. The Fixed Interest Division is different from the Fixed Account which is described in the prospectus but which is not available in your state. If you are unsure whether the Fixed Account is available in your state, please contact our Customer Service Center at (800) 366--0066. When reading through the Prospectus, the Fixed Interest Division should be counted among the various investment options available for the allocation of your premiums, in lieu of the Fixed Account. The Fixed Interest Division may not be available in some states. Some restrictions may apply. You will find more complete information relating to the Fixed Interest Division in the Offering Brochure. Please read the Offering Brochure carefully before you invest in the Fixed Interest Division. - -------------------------------------------------------------------------------- APPENDIX E - -------------------------------------------------------------------------------- SURRENDER CHARGE FOR EXCESS WITHDRAWALS EXAMPLE The following assumes you made an initial premium payment of $25,000 and additional premium payments of $25,000 in each of the second and third contract years, for total premium payments under the Contract of $75,000. It also assumes a withdrawal at the beginning of the third contract year of 30% of the contract value of $90,000. In this example, $13,500 (15% of $90,000) is maximum free withdrawal amount that you may withdraw during the contract year without a surrender charge. The total withdrawal would be $27,000 ($90,000 x .30). Therefore, $13,500 ($27,000 -- $13,500) is considered an excess withdrawal and would be subject to a 4% surrender charge of $540 ($13,500 x .04). This example does not take into account any Market Value Adjustment or deduction of any premium taxes. - -------------------------------------------------------------------------------- APPENDIX F - -------------------------------------------------------------------------------- WITHDRAWAL ADJUSTMENT FOR 7% SOLUTION DEATH BENEFIT EXAMPLES YR-2001 CONTRACT OWNERS These examples assume that withdrawals have not exceeded 7% of premium in any year. They apply to the 7% Solution Death Benefit and to the 7% Solution element of the Max 7 Death Benefit. EXAMPLE #1: THE CONTRACT VALUE (AV) IS LOWER THAN THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $87,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro-rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 -- $7,000) AV after Special Withdrawal = $80,000 ($87,000 -- $7,000) The Pro-rata Withdrawal is $20,000 ($27,000 -- $7,000). 2. Pro-rata Withdrawal Adjustment to MGDB = $30,000 ($120,000 * ($20,000 / $80,000)) MGDB after Pro-rata Withdrawal = $90,000 ($120,000-- $30,000) AV after Pro-rata Withdrawal = $60,000 ($80,000-- $20,000) EXAMPLE #2: THE CONTRACT VALUE (AV) IS GREATER THAN THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $167,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro-rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 -- $7,000) AV after Special Withdrawal = $160,000 ($167,000 -- $7,000) The Pro-rata Withdrawal is $20,000 ($27,000 -- $7,000). 2. Pro-rata Withdrawal Adjustment to MGDB = $15,000 ($120,000 * ($20,000 / $160,000)) MGDB after Pro-rata Withdrawal = $105,000 ($120,000 -- $15,000) AV after Pro-rata Withdrawal = $140,000 ($160,000 -- $20,000) EXAMPLE #3: THE CONTRACT VALUE (AV) IS EQUAL TO THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $127,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro-rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 -- $7,000) AV after Special Withdrawal = $120,000 ($127,000 -- $7,000) The Pro-rata Withdrawal is $20,000 ($27,000 -- $7,000). 2. Pro-rata Withdrawal Adjustment to MGDB = $20,000 ($120,000 * ($20,000 / $120,000)) MGDB after Pro-rata Withdrawal = $100,000 ($120,000 -- $20,000) AV after Pro-rata Withdrawal = $100,000 ($120,000 -- $20,000) - -------------------------------------------------------------------------------- APPENDIX G - -------------------------------------------------------------------------------- SPECIAL FUNDS AND EXCLUDED FUNDS EXAMPLES EXAMPLE #1: The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element ("7% MGDB") of allocating your Contract Value to Special Funds.
- ----------------------------------------- --------------------------------------- -------------------------------------- 7% MGDB IF 50% INVESTED 7% MGDB IF 0% INVESTED 7% MGDB IF 100% INVESTED IN SPECIAL FUNDS IN SPECIAL FUNDS IN SPECIAL FUNDS - ----------------------------------------- --------------------------------------- -------------------------------------- END OF YR COVERED SPECIAL TOTAL END OF YR COVERED SPECIAL TOTAL END OF YR COVERED SPECIAL TOTAL 0 500 500 1,000 0 1,000 -- 1,000 0 0 1000 1000 1 535 500 1,035 1 1,070 -- 1,070 1 0 1000 1000 2 572 500 1,072 2 1,145 -- 1,145 2 0 1000 1000 3 613 500 1,113 3 1,225 -- 1,225 3 0 1000 1000 4 655 500 1,155 4 1,311 -- 1,311 4 0 1000 1000 5 701 500 1,201 5 1,403 -- 1,403 5 0 1000 1000 6 750 500 1,250 6 1,501 -- 1,501 6 0 1000 1000 7 803 500 1,303 7 1,606 -- 1,606 7 0 1000 1000 8 859 500 1,359 8 1,718 -- 1,718 8 0 1000 1000 9 919 500 1,419 9 1,838 -- 1,838 9 0 1000 1000 10 984 500 1,484 10 1,967 -- 1,967 10 0 1000 1000 - ----------------------------------------- --------------------------------------- --------------------------------------
- ----------------------------------------- --------------------------------------- 7% MGDB IF TRANSFERRED TO 7% MGDB IF TRANSFERRED TO SPECIAL FUNDS COVERED FUNDS AT THE BEGINNING OF YEAR 6 AT THE BEGINNING OF YEAR 6 - ----------------------------------------- --------------------------------------- END OF YR COVERED SPECIAL TOTAL END OF YR COVERED SPECIAL TOTAL 0 1,000 -- 1,000 0 -- 1,000 1,000 1 1,070 -- 1,070 1 -- 1,000 1,000 2 1,145 -- 1,145 2 -- 1,000 1,000 3 1,225 -- 1,225 3 -- 1,000 1,000 4 1,311 -- 1,311 4 -- 1,000 1,000 5 1,403 -- 1,403 5 -- 1,000 1,000 6 -- 1,403 1,403 6 1,070 -- 1,070 7 -- 1,403 1,403 7 1,145 -- 1,145 8 -- 1,403 1,403 8 1,225 -- 1,225 9 -- 1,403 1,403 9 1,311 -- 1,311 10 -- 1,403 1,403 10 1,403 -- 1,403 - ----------------------------------------- ---------------------------------------
Landmark-###### G1 EXAMPLE #2: The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element ("7% MGDB") of allocating your Contract Value to Excluded Funds.
----------------------------------------------------------------------------- 7% MGDB IF 50% INVESTED IN EXCLUDED FUNDS ----------------------------------------------------------------------------- Covered Excluded Total -------------------------------------------------------- End of yr 7% MGDB Death AV "7% MGDB" AV 7% MGDB AV Benefit 0 500 500 500 500 1,000 1,000 1,000 1 535 510 535 510 1,045 1,020 1,045 2 572 490 572 490 1,062 980 1,062 3 613 520 613 520 1,133 1,040 1,133 4 655 550 655 550 1,205 1,100 1,205 5 701 450 701 450 1,151 900 1,151 6 750 525 750 525 1,275 1,050 1,275 7 803 600 803 600 1,403 1,200 1,403 8 859 750 859 750 1,609 1,500 1,609 9 919 500 919 500 1,419 1,000 1,419 10 984 300 984 300 1,284 600 1,284
----------------------------------------- ----------------------------------------- 7% MGDB IF 0% INVESTED 7% MGDB IF 100% INVESTED IN EXCLUDED FUNDS IN EXCLUDED FUNDS ----------------------------------------- ----------------------------------------- Covered Excluded -------------------- --------------------- End of yr Death End of yr Death 7% MGDB AV Benefit "7% MGDB" AV Benefit 0 1,000 1,000 1,000 0 1,000 1,000 1,000 1 1,070 1,020 1,070 1 1,070 1,020 1,020 2 1,145 980 1,145 2 1,145 980 980 3 1,225 1,040 1,225 3 1,225 1,040 1,040 4 1,311 1,100 1,311 4 1,311 1,100 1,100 5 1,403 900 1,403 5 1,403 900 900 6 1,501 1,050 1,501 6 1,501 1,050 1,050 7 1,606 1,200 1,606 7 1,606 1,200 1,200 8 1,718 1,500 1,718 8 1,718 1,500 1,500 9 1,838 1,000 1,838 9 1,838 1,000 1,000 10 1,967 600 1,967 10 1,967 600 600 ----------------------------------------- -----------------------------------------
Note: AV are hypothetical illustrative values. Not a projection. "7% MGDB" for Excluded funds is notional. Not payable as a benefit. Death Benefit for Excluded Funds equals Accumulation Value (AV)
------------------------------------------------------------------------------- TRANSFER FROM COVERED FUNDS TO EXCLUDED FUNDS AT THE BEGINNING OF YEAR 6 ------------------------------------------------------------------------------- Covered Excluded Total --------------------------------------------------------- end of yr 7% MGDB AV "7% AV 7% MGDB AV Death MGDB" Benefit -- 1,000 1,000 -- -- 1,000 1,000 1,000 1 1,050 1,020 -- -- 1,050 1,020 1,050 2 1,103 980 -- -- 1,103 980 1,103 3 1,158 1,040 -- -- 1,158 1,040 1,158 4 1,216 1,100 -- -- 1,216 1,100 1,216 5 1,276 900 -- -- 1,276 900 1,276 6 -- -- 1,340 1,050 1,050 1,050 1,050 7 -- -- 1,407 1,200 1,200 1,200 1,200 8 -- -- 1,477 1,500 1,500 1,500 1,500 9 -- -- 1,551 1,000 1,000 1,000 1,000 10 -- -- 1,629 600 600 600 600
Note: 7% MGDB transferred to Excluded Funds equals the 7% MGDB in Covered Funds (or pro-rata portion thereof for partial transfer). Transfers from Special Funds to Excluded Funds work the same as Covered to Excluded (except 7% MGDB in Special Funds does not accumulate).
------------------------------------------------------------------------------- TRANSFER FROM EXCLUDED FUNDS TO COVERED FUNDS AT THE BEGINNING OF YEAR 6 ------------------------------------------------------------------------------- Covered Excluded Total --------------------------------------------------------- end of yr 7% MGDB AV "7% AV 7% MGDB AV Death MGDB" Benefit -- -- -- 1,000 1,000 1,000 1,000 1,000 1 -- -- 1,050 1,020 1,020 1,020 1,020 2 -- -- 1,103 980 980 980 980 3 -- -- 1,158 1,040 1,040 1,040 1,040 4 -- -- 1,216 1,100 1,100 1,100 1,100 5 -- -- 1,276 900 900 900 900 6 945 1,050 -- -- 945 1,050 1,050 7 992 1,200 -- -- 992 1,200 1,200 8 1,042 1,500 -- -- 1,042 1,500 1,500 9 1,094 1,000 -- -- 1,094 1,000 1,094 10 1,149 600 -- -- 1,149 600 1,149 -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- APPENDIX H - -------------------------------------------------------------------------------- DEATH BENEFITS FOR YR-2001 CONTRACT OWNERS THE PURPOSE OF THIS APPENDIX IS TO DESCRIBE THE DEATH BENEFITS APPLICABLE TO CONTRACT OWNERS IN YR-2001. OTHER THAN AS DESCRIBED BELOW, PLEASE SEE THE PROSPECTUS FOR A FULL DESCRIPTION OF YOUR DEATH BENEFIT OPTIONS AND OTHER CONTRACT FEATURES. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. AS USED IN THIS APPENDIX, "NON--SPECIAL FUNDS" HAS THE SAME MEANING AS "COVERED FUNDS" IN THE PROSPECTUS. We use the Base Death Benefit to help determine the minimum death benefit payable under each of the death benefit options described below. You do not elect the Base Death Benefit. The BASE DEATH BENEFIT is equal to the greater of: 1) the contract value; and 2) the cash surrender value. The STANDARD DEATH BENEFIT equals the GREATEST of the Base Death Benefit, the floor, and the SUM of: 1) the contract value allocated to Special Funds; and 2) the Standard Minimum Guaranteed Death Benefit for amounts allocated to Non--Special Funds. The Standard Minimum Guaranteed Death Benefit equals: 1) the initial premium payment allocated to Special and Non--Special Funds, respectively; 2) increased by premium payments and adjusted for transfers, allocated to Special and Non--Special Funds, respectively, after issue; and 3) reduced by a pro-rata adjustment for any withdrawal or transfer taken from the Special and Non--Special Funds, respectively. In the event of transfers from Special to Non--Special funds, the increase in the Minimum Guaranteed Death Benefit of the Non--Special Fund will equal the lesser of the reduction in the Minimum Guaranteed Death Benefit in the Special Fund and the contract value transferred. In the event of transfers from Non--Special to Special Funds, the increase in the Minimum Guaranteed Death Benefit of the Special Fund will equal the reduction in the Minimum Guaranteed Death Benefit in the Non--Special Fund. THE FLOOR FOR THE DEATH BENEFIT IS the total premium payments made under the Contract reduced by a pro--rata adjustment for any withdrawal. ENHANCED DEATH BENEFIT OPTIONS. Under the Enhanced Death Benefit options, if you die before the annuity start date, your beneficiary will receive the greater of the Standard Death Benefit and the Enhanced Death Benefit option elected. For purposes of calculating the Enhanced Death Benefits, certain investment portfolios, and the Fixed Account are designated as "Special Funds." For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Selecting a Special Fund may limit or reduce the enhanced death benefit. For the period during which a portion of the contract value is allocated to a Special Fund, we may, at our discretion, reduce the mortality and expense risk charge attributable to that portion of the contract value. The reduced mortality and expense risk charge will be applicable only during that period. The 7% SOLUTION ENHANCED DEATH BENEFIT, equals the GREATEST of: 1) the Standard Death Benefit; 2) the floor; and 3) the sum of the contract value allocated to Special Funds and the 7% Solution Minimum Guaranteed Death Benefit for Non--Special Funds. The 7% Solution Minimum Guaranteed Death Benefit for Special and Non--Special Funds equals the lesser of: 1) premiums, adjusted for withdrawals and transfers, accumulated at 7% until the earlier of attainment of age 80 or reaching the cap (equal to 3 times all premium payments, as reduced by adjustments for withdrawals) and thereafter at 0%, subject to a floor as described below, and 2) the cap. Withdrawals of up to 7% per year of cumulative premiums are referred to as special withdrawals. Special withdrawals reduce the 7% Solution Minimum Guaranteed Death Benefit by the amount of contract value withdrawn. For any other withdrawals (withdrawals in excess of the amount available as a special withdrawal), a pro-rata adjustment to the 7% Solution Minimum Guaranteed Death Benefit is made. The amount of the pro-rata adjustment for withdrawals from Non--Special Funds will equal (a) times (b) divided by (c): where (a) is the 7% Solution Minimum Guaranteed Death Benefit for Non--Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Non--Special Funds before the withdrawal. The amount of the pro-rata adjustment for withdrawals from Special Funds will equal (a) times (b) divided by (c): where (a) is the 7% Solution Minimum Guaranteed Death Benefit for Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Special Funds before the withdrawal. Transfers from Special to Non--Special Funds will reduce the 7% Solution Minimum Guaranteed Death Benefit and the cap for Special Funds on a pro-rata basis. The resulting increase in the 7% Solution Minimum Guaranteed Death Benefit in the Non--Special Funds will equal the lesser of the reduction in the 7% Solution Minimum Guaranteed Death Benefit in the Special Funds and the contract value transferred. The increase in the cap for Non--Special Funds will equal the reduction in the cap for Special Funds. Transfers from Non--Special to Special Funds will reduce the 7% Solution Minimum Guaranteed Death Benefit and the cap in the Non--Special Funds on a pro-rata basis. The resulting increase in the 7% Solution Minimum Guaranteed Death Benefit and the cap for the Special Funds will equal the reduction in the 7% Solution Minimum Guaranteed Death Benefit and the cap for the Non--Special Funds. THE FLOOR FOR THE 7 % SOLUTION ENHANCED DEATH BENEFIT is determined by the same calculations described above for the 7% Solution Minimum Guaranteed Death Benefit except as follows: If you transfer contract value to a Special Fund, the minimum floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non--Special Funds. Upon such transfer back to Non--Special Funds, we will resume accumulating that portion of the floor at the 7% annual effective rate as described above, subject to the age limit and the cap described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals will reduce the floor as described for the minimum guaranteed death benefit above. Your death benefit will be the greater of the floor and the death benefit determined as described above. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the GREATEST of: 1) the Standard Death Benefit; 2) the floor; and 3) the sum of the contract value allocated to Special Funds and the Annual Ratchet Minimum Guaranteed Death Benefit allocated to Non--Special Funds. The Annual Ratchet Minimum Guaranteed Death Benefit equals: 1) the initial premium allocated at issue to Special and Non--Special Funds, respectively; 2) increased dollar for dollar by any premium allocated after issue to Special and Non--Special funds, respectively; 3) for Non--Special Funds, adjusted on each anniversary that occurs on or prior to attainment of age 90 to the greater of the Annual Ratchet Minimum Guaranteed Death Benefit for Non--Special Funds from the prior anniversary (adjusted for new premiums, partial withdrawals allocated to Non--Special Funds, and transfers between Special and Non--Special Funds) and the current contract value allocated to Non--Special Funds; (4) for Special Funds, adjusted on each anniversary that occurs on or prior to attainment of age 90 to the greater of the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds from the prior anniversary (adjusted for new premiums, partial withdrawals allocated to Special Funds, and transfers between Special and Non--Special and Non--Special Funds) and the current contract value allocated to Special Funds. Withdrawals reduce the Annual Ratchet Minimum Guaranteed Death Benefit on a pro-rata basis, based on the amount withdrawn from the Special and Non--Special Funds, respectively. The amount of the pro-rata adjustment for withdrawals from Non--Special Funds will equal (a) times (b) divided by (c): where (a) is the Annual Ratchet Minimum Guaranteed Death Benefit for Non--Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Non--Special Funds before withdrawal. The amount of the pro-rata adjustment for Special Funds will equal (a) times (b) divided by (c): where (a) is the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Special Funds before the withdrawal. Transfers from Special to Non--Special Funds will reduce the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds on a pro-rata basis. The resulting increase in the Annual Ratchet Minimum Guaranteed Death Benefit in the Non--Special Funds will equal the lesser of the reduction in the Annual Ratchet Minimum Guaranteed Death Benefit in the Special Funds and the contract value transferred. Transfers from Non--Special to Special Funds will reduce the Annual Ratchet Minimum Guaranteed Death Benefit for Non--Special Funds on a pro-rata basis. The resulting increase in the Annual Ratchet Minimum Guaranteed Death Benefit for the Special Funds will equal the reduction in the Annual Ratchet Minimum Guaranteed Death Benefit for the Non--Special Funds. THE FLOOR FOR THE ANNUAL RATCHET ENHANCED DEATH BENEFIT is determined as described above for the Annual Ratchet Minimum Guaranteed Death Benefit except that all investments will be treated as Non--Special Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit. Under this death benefit option, the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit are calculated in the same manner as if each were the elected benefit. Note: In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. The enhanced death benefits may not be available in all states. DEATH BENEFITS FOR EXCLUDED FUNDS We will be designating certain investment portfolios as "Excluded Funds." Excluded Funds will include certain investment portfolios that, due to their volatility, will be excluded from the death benefit guarantees that might otherwise be provided. We may add new portfolios as Excluded Funds. We may also reclassify an existing portfolio as an Excluded Fund or remove such classification upon 30 days notice to you. Such reclassification will apply only to amounts transferred or otherwise added to such portfolio after the effective date of the reclassification. Investment in Excluded Funds will impact your death benefit. For the period of time, and to the extent, that you allocate premium or contract value to Excluded Funds, your death benefit attributable to that allocation will equal the contract value of that allocation. Any guarantee of death benefit in excess of contract value otherwise provided with regard to allocations to Non--Excluded Funds, does not apply to allocations to Excluded Funds. The death benefit provided under the Contract may be reduced to the extent that you allocate premium or contract value to Excluded Funds. Transfers from Excluded Funds to Non--Excluded funds will reduce all death benefit components for Excluded Funds on a pro-rata basis. Except with respect to any maximum guaranteed death benefit, the resulting increase in the Non--Excluded Funds death benefit component will equal the lesser of the reduction in the death benefit for Excluded Funds and the contract value transferred. With respect to the maximum guaranteed death benefit, where applicable, the resulting increase in the Non--Excluded Funds maximum guaranteed death benefit will equal the reduction in the maximum guaranteed death benefit for Excluded Funds. Transfers from Non--Excluded Funds to Excluded Funds will reduce the Non--Excluded Funds death benefit components on a pro--rata basis. The resulting increase in the death benefit components of Excluded Funds will equal the reduction in the Non--Excluded Funds death benefit components. - -------------------------------------------------------------------------------- APPENDIX I - -------------------------------------------------------------------------------- DEATH BENEFITS FOR MAY-2002 AND YR-2003 CONTRACT OWNERS The following is a description of the 7% Solution Enhanced Death Benefit, the Annual Ratchet Enhanced Death Benefit and the Max 7 Enhanced Death Benefit for May-2002 and Yr-2003 contract owners. Other than as described below, please see the prospectus for a full description of your death benefit options and other Contract features. Capitalized terms have the same meaning as described in the prospectus. The 7% SOLUTION ENHANCED DEATH BENEFIT is the greater of: 1) the Standard Death Benefit; and 2) the lesser of: a) 3 times all premium payments, adjusted for withdrawals (the "cap"); or b) the SUM OF the 7% Solution Minimum Guaranteed Death Benefit ("7% MGDB") allocated to Covered Funds, the 7% MGDB allocated to Special Funds, and the contract value allocated to Excluded Funds. For purposes of calculating the 7% Solution Enhanced Death Benefit, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio, the ING Limited Maturity Bond Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division, and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The 7% MGDB allocated to Covered Funds equals premiums allocated to Covered Funds, adjusted for withdrawals and transfers, accumulated at 7% until age 80 or the 7% MGDB reaches the cap. There is no accumulation once the cap is reached. Payment of additional premiums may cause the accumulation to resume, but there is no catch-up for any period where accumulation was suspended. The 7% MGDB allocated to Special Funds equals premiums allocated to Special Funds, adjusted for withdrawals and transfers. There is no accumulation of Minimum Guaranteed Death Benefit allocated to Special Funds. The 7% MGDB allocated to Excluded Funds is determined in the same way as the 7% MGDB for Covered Funds, but the calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the 7% MGDB on a pro-rata basis. The percentage reduction in the 7% MGDB for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The percentage reduction in the cap equals the percentage reduction in total contract value resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall 7% MGDB, but do affect the amount of the 7% MGDB in a particular Fund category. Net transfers from among the Funds will reduce the 7% MGDB in the Funds on a pro-rata basis. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the greater of: 1) the Standard Death Benefit; and 2) the Annual Ratchet Minimum Guaranteed Death Benefit ("Annual Ratchet MGDB") allocated to Covered Funds plus the contract value allocated to Excluded Funds, less any credits added within 1 year prior to death. No funds are currently designated as Excluded Funds for purposes of the Annual Ratchet MGDB. The Annual Ratchet MGDB allocated to Covered Funds on the contract date equals the premium and credits allocated to Covered Funds. On each contract anniversary that occurs on or prior to attainment of age 90, the Annual Ratchet MGDB in Covered Funds will be set to the greater of: 1) the current contract value in Covered Funds (after deductions occurring as of that date); or 2) the Annual Ratchet MGDB in Covered Funds from the prior contract anniversary (after deductions occurring on that date), adjusted for new premiums, credits, and partial withdrawals attributable to Covered Funds, and transfers. Other than on contract anniversaries, the Annual Ratchet MGDB in the Covered Funds is equal to the Annual Ratchet MGDB in the Covered Funds from the last contract anniversary, adjusted for new premiums, credits, and partial withdrawals attributable to Covered Funds, and transfers. The Annual Ratchet MGDB allocated to Excluded Funds on the contract date equals the premium and credits allocated to Excluded Funds. The calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. On the contract date, the Annual Ratchet MGDB allocated to Excluded Funds is equal to the premium and credits allocated to Excluded Funds. On each contract anniversary that occurs on or prior to attainment of age 90, the Annual Ratchet MGDB in Excluded Funds will be set to the greater of: 1) the current contract value in Excluded Funds (after deductions occurring as of that date); or 2) the Annual Ratchet MGDB in the Excluded Funds from the prior contract anniversary (after deductions occurring on that date), adjusted for new premiums and credits and partial withdrawals attributable to Excluded Funds, and transfers. Other than on contract anniversaries, the Annual Ratchet MGDB in the Excluded Funds is equal to the Annual Ratchet MGDB in the Excluded Funds from the last contract anniversary, adjusted for new premiums, credits, and partial withdrawals attributable to Excluded Funds, and transfers. Withdrawals reduce the Annual Ratchet MGDB on a pro-rata basis. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Net transfers from Covered Funds to Special or Excluded Funds will reduce the 7% MGDB in Covered Funds on a pro-rata basis. The increase in the 7% MGDB allocated to Special or Excluded Funds, as applicable, will equal the decrease in the 7% MGDB in Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the Annual Ratchet MGDB in Excluded Funds on a pro-rata basis. The increase in the Annual Ratchet MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the reduction in the Annual Ratchet MGDB in Excluded Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the 7% Solution Enhanced Death Benefit or the Annual Ratchet Enhanced Death Benefit described above. Each Enhanced Death Benefit is determined independently of the other at all times. - -------------------------------------------------------------------------------- APPENDIX J - -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFITS FOR YR-2001 CONTRACT OWNERS The following is a description of the optional rider benefits for Yr-2001 contract owners who elected an optional rider benefit. We may be designating certain investment portfolios as "Excluded Funds". We may add new portfolios as Excluded Funds. We may also reclassify an existing portfolio as an Excluded Fund or remove such classification upon 30 days notice to you. Such reclassification will apply only to amounts transferred or otherwise added to such portfolio after the effective date of the reclassification. Investment in Excluded Funds will impact the benefit under any optional rider that you have elected. If you never invest in Excluded Funds, your rider benefits will be unaffected. Other than as specified below, please see the prospectus for a complete description of your optional rider benefits. Capitalized terms have the same meaning as described in the prospectus. OPTIONAL RIDER CHARGES MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB). The quarterly charge for the MGAB rider is as follows: -------------------------- ---------------------------------------------------- Waiting Period Quarterly Charge -------------------------- ---------------------------------------------------- 10 Year 0.125% of the MGAB Charge Base (0.50% annually) 20 Year 0.125% of the MGAB Charge Base (0.50% annually) -------------------------- ---------------------------------------------------- The MGAB Charge Base is the total of (i) the MGAB Base on the rider date and (ii) premiums during the 2--year period commencing on the rider date, reduced pro-rata for withdrawals and reduced for transfers made within the last 3 years prior to the MGAB Benefit Date. We will deduct charges only during your ten--year or twenty--year waiting period, as applicable. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and MGAB Charge Base immediately prior to the surrender or annuitization. The MGAB Charge Base is adjusted for transfers between Special and Non--Special Funds or Excluded Funds. MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The quarterly charge for the MGIB rider is as follows: - -------------------------- ----------------------------------------------------- MGIB Rate Quarterly Charge - -------------------------- ----------------------------------------------------- 7% 0.125% of the MGIB Charge Base (0.50% annually) - -------------------------- ----------------------------------------------------- The MGIB Charge Base is the total of premiums paid more than 5 years before the earliest MGIB Benefit Date, reduced pro-rata for all withdrawals taken while the MGIB rider is in effect, and accumulated at the MGIB Rate (7%) to the earlier of age 80 and reaching the MGIB Base Maximum. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your MGIB Charge Base immediately prior to the surrender or annuitization. The MGIB Charge Base is adjusted for transfers between Special and Non--Special Funds or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment Amount. The original MGWB Eligible Payment Amount is equal to all premiums paid during the first two contract years following the rider date. When we calculate the MGWB rider charge, we do not reduce the Eligible Payment Amount by the amount of any withdrawals taken while the MGWB rider is in effect. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your original MGWB Eligible Payment Amount immediately prior to the surrender or annuitization. OPTIONAL RIDER BENEFITS MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB) RIDER. The MGAB rider is an optional benefit which provides you with an MGAB benefit intended to guarantee a minimum contract value at the end of a specified waiting period. The MGAB is a one--time adjustment to your contract value in the event your contract value on the MGAB Benefit Date is less than a specified amount. The MGAB rider may offer you protection in the event your Contract loses value during the MGAB waiting period. For discussion of the charges we deduct under the MGAB rider, see "Optional Rider Charges." The MGAB rider offers a ten--year option and a twenty--year option, of which you may purchase only one. The ten--year option has a waiting period of ten years and, other than for allocations to Special Funds, guarantees that your contract value at the end of ten years will at least equal your initial premium payment, reduced pro--rata for withdrawals. Transfers made within 3 years prior to the MGAB Benefit Date will also reduce the benefit pro--rata. The twenty--year option has a waiting period of twenty years and, other than allocations to Special Funds, guarantees that your contract value at the end of twenty years will at least equal two times your initial premium payment, reduced pro--rata for withdrawals and reduced for transfers made within 3 years prior to the MGAB Benefit Date. If you add the 20 year option rider after the contract date, any payment of premiums after the rider date, and/or investments in the Special Funds, may prevent the MGAB Base from doubling over the waiting period. On the MGAB Benefit Date, which is the next business day after the applicable waiting period, we calculate your Minimum Guaranteed Accumulation Benefit. CALCULATING THE MGAB. We calculate your MGAB as follows: 1. WE FIRST DETERMINE YOUR MGAB BASE. The MGAB Base is only a calculation used to determine the MGAB. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your annuity income, cash surrender value and death benefits. The MGAB Base is tracked separately for Special and Non--Special Funds, based on the initial allocation of premium (or contract value), subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The aggregate MGAB Base is used to determine the MGAB on the MGAB Benefit Date. THE AGGREGATE MGAB BASE EQUALS THE SUM OF (1) THE LESSER OF THE MGAB BASE ALLOCATED TO SPECIAL FUNDS AND THE CONTRACT VALUE IN THE SPECIAL FUNDS; AND (2) THE MGAB BASE FOR NON--SPECIAL FUNDS. THUS, INVESTING IN THE SPECIAL FUNDS MAY LIMIT THE MGAB BENEFIT. HOWEVER, THE MGAB BASE IS ALSO SUBJECT TO A "FLOOR" WHICH MAY PARTIALLY OFFSET THE EFFECTS OF INVESTING IN SPECIAL FUNDS. If you purchased the MGAB rider on the contract date, and (i) elected the ten--year option, your MGAB Base for Special and Non--Special Funds is equal to your initial premium plus any additional premium added to your Contract during the 2--year period after your rider date, reduced pro--rata for any withdrawals and any transfers made within 3 years prior to the MGAB Benefit Date; or (ii) elected the twenty--year option your MGAB Base for Special and Non--Special Funds is equal to your initial premium, plus any additional premium added to your Contract during the 2--year period after your contract date, accumulated at the MGAB Rate reduced pro--rata for any withdrawals and reduced for any transfers made within 3 years prior to the MGAB Benefit Date. The MGAB Rate is the annual effective rate of 3.5265%. Accumulation of eligible additional premiums starts on the date the premium was received. If you purchased the MGAB rider after the contract date, your MGAB Base is equal to your contract value on the rider date, plus premiums added during the 2--year period after your rider date, accumulated at the MGAB Rate (if applicable, as described above) and adjusted pro--rata for withdrawals and transfers as described below. the MGAB Base. Any additional premium payments you added to your contract after the second rider anniversary are not included in the MGAB Base. Thus, the MGAB rider may not be appropriate for you if you plan to add substantial premium payments after your second rider anniversary. Withdrawals taken while the MGAB rider is in effect, as well as transfers made within 3 years prior to the MGAB Benefit Date, will reduce the value of your MGAB Base pro-rata. This means that the MGAB Base (and the MGAB Charge Base) will be reduced by the same percent as the percent of contract value that was withdrawn (or transferred). We will look to your contract value immediately before the withdrawal or transfer when we determine this percent. Net transfers from Special Funds to Non--Special Funds will reduce the MGAB Base and MGAB Charge Base allocated to Special Funds on a pro-rata basis. If the transfer is made more than 3 years before the Benefit Date, there will be a corresponding increase in the MGAB Base for Non--Special Funds equal to the lesser of the reduction in the MGAB Base for Special Funds and the net contract value transferred. Net transfers from Non--Special Funds to Special Funds will reduce the MGAB Base and MGAB Charge Base allocated to Non--Special Funds on a pro-rata basis. If the transfer is made more than 3 years before the Benefit Date, there will be a corresponding increase in the MGAB Base for Special Funds equal to the reduction in the MGAB Base for Non--Special Funds. 2. THEN WE DETERMINE THE FLOOR. The floor will be calculated in the same manner as the MGAB Base described above, except as follows: For the ten--year option, all investments will be treated as Non--Special Funds. For the twenty--year option, if you transfer contract value to a Special Fund more than 3 years before the Benefit Date, the floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non--Special Funds. Upon such transfer back to Non--Special Funds, we will resume accumulating that portion of the floor at the MGAB Rate described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals and other transfers will reduce the floor as described for the MGAB Base above. 3. WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB BENEFIT DATE FROM THE GREATER OF THE FLOOR AND YOUR AGGREGATE MGAB BASE. The contract value that we subtract includes both the contract value in the subaccounts in which you are invested and the contract value in your Fixed Interest Allocations, if any. 4. ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it to the subaccounts in which you are invested pro--rata based on the proportions of your then contract value in the subaccounts on that date, unless you have previously given us other allocation instructions. If you do not have an investment in any subaccount on the MGAB Benefit Date, we will allocate the MGAB to the Liquid Assets subaccount on your behalf. After the crediting of the MGAB, the amount of your annuity income, cash surrender value and death benefits will reflect the crediting of the MGAB to your contract value to the extent the contract value is used to determine such value. PURCHASE. To purchase the MGAB rider, you must be age 80 or younger on the Rider Date if you choose the ten--year option and age 65 or younger on the rider date if you choose the twenty--year option. The waiting period must end at or before your annuity start date. The MGAB rider may be purchased (i) on the contract date, and (ii) within 30 days following the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30--day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. THE MGAB BENEFIT DATE. If you purchased the MGAB rider on the contract date or added the MGAB rider within 30 days following the contract date, the MGAB Benefit Date is your 10th contract anniversary for the ten--year option or 20th contract anniversary for the twenty--year option. If you added the MGAB rider during the 30--day period preceding your first contract anniversary after the date of this prospectus, your MGAB Benefit Date will be the first contract anniversary occurring after 10 years (for the ten--year option) or 20 years (for the twenty--year option) after the rider date. The MGAB rider is not available if the MGAB Benefit Date would fall beyond the latest annuity start date. CANCELLATION. If you elected the twenty--year option, you have a one--time right to cancel the MGAB rider on your first contract anniversary that is at least 10 years after the rider date. If you purchased the MGAB rider during the 30--day period following the contract date, your one--time right to cancel the rider occurs on the tenth anniversary of your contract date. To cancel, you need to send written notice to our Customer Service Center at least 30 days before such anniversary date. If the MGAB rider is terminated before the MGAB Benefit Date, you will not be credited with the MGAB and we assess the pro--rata portion of the MGAB rider changes for the current quarter. NOTIFICATION. Any crediting of the MGAB will be reported in your first quarterly statement following the MGAB Benefit Date. MINIMUM GUARANTEED INCOME BENEFIT (MGIB) RIDER. The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Benefit Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to the Special Funds, the MGIB Rate, the adjustment for Special Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds may limit the MGIB benefit. However, the MGIB Benefit Base is also subject to a "floor" which may partially offset the effects of investing in Special Funds. For a discussion of the charges we deduct under the MGIB rider, see "Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Benefit Date is the greatest of: (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; (ii) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the then current income factors in effect for the annuity option you selected; and (iii)the MGIB annuity income based on the greater of the floor and your MGIB Benefit Base on the MGIB Benefit Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust both the floor and the MGIB Benefit Base for any premium tax recovery and Market Value Adjustment (see the ING USA Fixed Account prospectus) that would otherwise apply at annuitization. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Benefit Date. We require a 10--year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30--day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Benefit Date. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Benefit Date, we calculate your MGIB annuity income as follows: 1. WE FIRST DETERMINE YOUR MGIB BENEFIT BASE. The MGIB Benefit Base is only a calculation used to determine the MGIB. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Base or MGIB Base Maximum. The MGIB Base is tracked separately for Special and Non--Special Funds, based on initial allocation of eligible premium (or contract value) and subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The MGIB Benefit Base equals the sum of (1) the contract value of Special Funds, and (2) the MGIB Base for Non--Special Funds. The MGIB Base is equal to the lesser of (i) and (ii) where: (a) is your initial premium (or contract value on the rider date if you purchased the MGIB rider after the contract date), plus any eligible additional premiums added to your Contract, reduced pro--rata by all withdrawals taken while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the MGIB Base Maximum, and at 0% thereafter; and (b) is the MGIB Base Maximum, which equals 200% of allocated eligible premiums, adjusted for withdrawals and transfers. Eligible additional premium payments are those added more than 5 years before the earliest MGIB Benefit Date and are included in the MGIB Base. Premiums paid after that are excluded from the MGIB Base. Net transfers from Special Funds to Non--Special Funds will reduce the MGIB Base and MGIB Base Maximum allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Base for Non--Special Funds will equal the lesser of the reduction in the MGIB Base for Special Funds and the net contract value transferred. The increase in the MGIB Base Maximum for Non--Special Funds equals the reduction in the MGIB Base Maximum for Special Funds. Net transfers from Non--Special Funds to Special Funds will reduce the MGIB Base and MGIB Base Maximum allocated to Non--Special Funds on a pro-rata basis. The resulting increase in the MGIB Base and the MGIB Base Maximum for Special Funds equals the reduction in the MGIB Base and MGIB Base Maximum for Non--Special Funds. Transfers to one or more Special Funds could reduce the MGIB Benefit. The MGIB Rate is currently 7%. The Company may at its discretion discontinue offering this rate. The MGIB Rate is an annual effective rate. 2. WE THEN DETERMINE THE FLOOR. The floor will be calculated in the same manner as the MGIB Base described above, except as follows: If you transfer contract value to a Special Fund, the floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non--Special Funds. Upon such transfer back to Non--Special Funds, we will resume accumulating that portion of the floor at the MGIB Rate described above, subject to the age limit and the Maximum described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals will reduce the floor as described for the MGIB Base above. 3. THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING THE GREATER OF THE MINIMUM FLOOR AND YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT AND PREMIUM TAXES) BY THE APPLICABLE INCOME FACTOR, AND THEN DIVIDING BY $1,000. The MGIB Income Options are available under the MGIB Rider: (i) Income for Life (Single Life or Joint with 100% Survivor) and 10--30 Year Certain; (ii) Income for a 20--30 Year Period Certain; or (iii)Any other income plan offered by the Company in connection with the MGIB rider on the MGIB Benefit Date. On the MGIB Benefit Date, we would apply the greater of the floor and the MGIB Benefit Base under the Table of Income Factors specified in the MGIB rider for the Income Option you selected. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. Then we compare the MGIB annuity income under the rider guarantee for the option selected with the annuity income under your Contract for the same option. The greater amount of income will be available to you on the MGIB Benefit Date. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten--year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30--day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten year waiting period before the MGIB rider can be exercised. THE MGIB BENEFIT DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Benefit Date is the contract anniversary next following or is incident with exercise of your option to annuitize after a ten--year waiting period from the contract date. If you added the MGIB rider at any other time, your MGIB Benefit Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuities under the MGIB rider. NO CHANGE OF ANNUITANT. Once the MGIB rider is purchased, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. NOTIFICATION. On or about 30 days prior to the MGIB Benefit Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise. The actual amount of the MGIB annuity benefit will be determined as of the MGIB Benefit Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN THE MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB) RIDER. The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero, you will receive periodic payments equal to all premium payments paid during the first two contract years (Eligible Payment Amount) adjusted for any prior withdrawals. To maintain this guarantee, withdrawals in any contract year may not exceed 7% of your adjusted Eligible Payment Amount. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. For a discussion of the charges we deduct under the MGWB rider, see "Optional Rider Charges." Your original Eligible Payment Amount depends on when you purchase the MGWB rider and is: (i) if you purchased the MGWB rider on the contract date, your premium payments received during the first two contract years; or (ii) if you purchased the MGWB rider after the contract date, your contract value on the rider date, including any premiums received that day, and any subsequent premium payments received during the two--year period commencing on the rider date. THE MGWB WITHDRAWAL ACCOUNT. The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. The MGWB Withdrawal Account is equal to the Eligible Payment Amount, tracked separately for Special and Non--Special Funds, adjusted for any withdrawals and transfers between Special and Non--Special Funds. THE MGWB WITHDRAWAL ACCOUNT EQUALS THE SUM OF (A) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO NON--SPECIAL FUNDS, AND (B) THE LESSER OF (1) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO SPECIAL FUNDS AND (2) THE CONTRACT VALUE IN THE SPECIAL FUNDS. THUS, INVESTING IN THE SPECIAL FUNDS MAY LIMIT THE MGWB WITHDRAWAL ACCOUNT. However, the MGWB Withdrawal Account is also subject to a "floor" which may partially offset the effects of investing in Special Funds. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal for Non--Special Funds and pro-rata for Special Funds, based on the source of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in the MGWB Withdrawal Account of the Special and Non--Special Funds by the proportion that the withdrawal bears to the Contract Value of the Special and Non--Special Funds, respectively, at the time of the withdrawal. If a single withdrawal involves both Special and Non--Special Funds and causes the 7% to be exceeded, the withdrawal will be treated as taken first from Non--Special Funds. Any withdrawals greater than 7% per year of the Eligible Payment Amount will also cause a reduction in the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB Withdrawal Account is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. If the MGWB Withdrawal Account is greater than the floor and a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Special Funds to Non--Special Funds will reduce the MGWB Withdrawal Account allocated to Special Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Non--Special Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Special Funds and the net contract value transferred. Net transfers from Non--Special Funds to Special Funds will reduce the MGWB Withdrawal Account allocated to Non--Special Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Special Funds equals the reduction in the MGWB Withdrawal Account for Non--Special Funds. THE FLOOR FOR YOUR MGWB WITHDRAWAL ACCOUNT is equal to the Eligible Payment Amount adjusted for any withdrawals. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the floor by the dollar amount of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in the floor for the MGWB Withdrawal Account and the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The floor is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. If the floor is greater than the MGWB Withdrawal Account and a withdrawal reduces the floor to zero, the MGWB rider terminates and no further benefits are payable under the rider. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." Making any withdrawals in any year greater than 7% per year of the Eligible Payment Amount will reduce the Eligible Payment Amount for future withdrawals and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider, will remain in force, and you may continue to make withdrawals so long as: (i) your contract value is greater than zero; (ii) your MGWB Withdrawal Account or the floor is greater than zero; (iii)your latest allowable annuity start date has not been reached; (iv) you have not elected to annuitize your Contract; and (v) you have not died (unless your spouse has elected to continue the contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero your Contract is given what we refer to as Automatic Periodic Benefit Status if the following conditions exist: (i) your MGWB Withdrawal Account or the floor is greater than zero; (ii) your latest allowable annuity start date has not been reached; (iii)you have not elected to annuitize your Contract; and (iv) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, the greater of the floor and the MGWB Withdrawal Account will be treated as the MGWB Withdrawal Account to determine any rider benefits. We will pay you the annual MGWB periodic payments, beginning on the next contract anniversary equal to the lesser of the remaining MGWB Withdrawal Account or 7% annually of your Eligible Payment Amount until the earliest of (i) your contract's latest annuity start date, (ii) the death of the owner; or (iii) until your MGWB Withdrawal Account is exhausted. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status (that is, your contract value is zero), we will not accept any additional premium payments in your Contract, and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of (i) payment of all MGWB periodic payments, and (ii) payment of the Commuted Value (defined below) or (iii) the owner's death has occurred. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury Strips as quoted by a national quoting service for period(s) applicable to the remaining payments. Once the last MGWB periodic payment is made or we pay you the Commuted Value, your Contract and the MGWB rider terminate. DEATH BENEFIT DURING AUTOMATIC PERIODIC BENEFIT STATUS. If you have never withdrawn more than 7% per year of the Eligible Payment Amount and you elected the 7% Solution Enhanced Death Benefit in your Contract (or you elected the Max 7 Enhanced Death Benefit resulting in the 7% Solution Enhanced Death Benefit as the actual benefit), the death benefit otherwise payable under the terms of your Contract will remain in force during any Automatic Periodic Benefit Status. In determining the amount of the death benefit during the Automatic Periodic Benefit Status, we deem your contract value to be zero and the MGWB periodic payments reduce the enhanced death benefit by the amount of the payment. In all other cases, the death benefit payable during Automatic Periodic Benefit Status is the greater of the floor and your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. If you elected the Max 7 Enhanced Death Benefit, then the 7% Solution and the Annual Ratchet components shall each be calculated as if each were the elected death benefit option. PURCHASE. To purchase the MGWB rider, your must be age 80 or younger on the Rider Date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30--day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval whichever is later. - -------------------------------------------------------------------------------- APPENDIX K - -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFIT CHARGES AND MINIMUM GUARANTEED INCOME BENEFIT FOR MAY-2002 CONTRACT OWNERS The following is a description of the optional rider benefits for May-2002 contract owners who elected an optional rider benefit. OTHER THAN AS SPECIFIED BELOW, PLEASE SEE THE PROSPECTUS FOR A COMPLETE DESCRIPTION OF YOUR OPTIONAL RIDER BENEFITS. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. OPTIONAL RIDER CHARGES MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB). The quarterly charge for the MGAB rider is as follows: - -------------------------- ----------------------------------------------------- Waiting Period Quarterly Charge - -------------------------- ----------------------------------------------------- 10 Year 0.125% of the MGAB Charge Base (0.50% annually) 20 Year 0.125% of the MGAB Charge Base (0.50% annually) - -------------------------- ----------------------------------------------------- The MGAB Charge Base is the total of (i) the MGAB Base on the rider date and (ii) premiums during the 2--year period commencing on the rider date, reduced pro-rata for withdrawals and reduced for transfers made within the last 3 years prior to the MGAB Benefit Date. We will deduct charges only during your ten--year or twenty--year waiting period, as applicable. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and MGAB Charge Base immediately prior to the surrender or annuitization. The MGAB Charge Base is adjusted for transfers between Special and Non--Special Funds or Excluded Funds. MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The quarterly charge for the MGIB rider is as follows: - -------------------------- ----------------------------------------------------- MGIB Rate Quarterly Charge - -------------------------- ----------------------------------------------------- 7% 0.125% of the MGIB Charge Base (0.50% annually) - -------------------------- ----------------------------------------------------- The MGIB Charge Base is the total of premiums paid more than 5 years before the earliest MGIB Benefit Date, reduced pro-rata for all withdrawals taken while the MGIB rider is in effect, and accumulated at the MGIB Rate (7%) to the earlier of age 80 and reaching the MGIB Base Maximum. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your MGIB Charge Base immediately prior to the surrender or annuitization. The MGIB Charge Base is adjusted for transfers between Special and Non--Special Funds or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment Amount. The original MGWB Eligible Payment Amount is equal to all premiums paid during the first two contract years following the rider date. When we calculate the MGWB rider charge, we do not reduce the Eligible Payment Amount by the amount of any withdrawals taken while the MGWB rider is in effect. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your original MGWB Eligible Payment Amount immediately prior to the surrender or annuitization. MINIMUM GUARANTEED INCOME BENEFIT (MGIB) RIDER. The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Benefit Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to Special Funds or Excluded Funds, the MGIB Rate, the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the MGIB benefit. For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. For a discussion of the charges we deduct under the MGIB rider, see "Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Benefit Date is the greatest of: (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; (ii) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the then current income factors in effect for the annuity option you selected; and (iii)the MGIB annuity income based on your MGIB Benefit Base on the MGIB Benefit Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust the MGIB Benefit Base for any premium tax recovery and Market Value Adjustment (see the ING USA Fixed Account prospectus) that would otherwise apply at annuitization. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Benefit Date. We require a 10--year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30--day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Benefit Date. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Benefit Date, we calculate your MGIB annuity income as follows: 1. WE FIRST DETERMINE YOUR MGIB BENEFIT BASE. The MGIB Benefit Base is only a calculation used to determine the MGIB. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Base or MGIB Base Maximum. The MGIB Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value) and subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The MGIB Benefit Base equals the lesser of (a) and (b) where: a) is the Maximum MGIB Base; and b) is the sum of: 1) the MGIB Base allocated to Covered Funds; 2) the MGIB Base allocated to Special Funds; and 3) the contract value allocated to Excluded Funds. The Maximum MGIB Base is 200% of eligible premiums, adjusted pro--rata for withdrawals. The Maximum MGIB Base is not allocated by Fund category. The MGIB Base allocated to Covered Funds equals the eligible premiums allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the Maximum MGIB Base, and at 0% thereafter. The MGIB Base allocated to Special Funds equals the eligible premiums allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. THERE IS NO ACCUMULATION OF MGIB BASE ALLOCATED TO SPECIAL FUNDS. The MGIB Base allocated to Excluded Funds equals the eligible premiums allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB BASE ALLOCATED TO EXCLUDED FUNDS IS USED ONLY FOR TRANSFER ADJUSTMENTS AND RIDER CHARGES. IT IS NOT USED TO DETERMINE BENEFITS. Eligible premiums are those added more than 5 years before the earliest MGIB Benefit Date. Premiums paid after that are excluded from the MGIB Base. The MGIB Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rate is an annual effective rate. Withdrawals reduce the MGIB Base on a pro--rata basis. The percentage reduction in the MGIB Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. For example, the value of the MGIB Base in Covered Funds after a withdrawal from one or more Covered Funds equals the value of the MGIB Base in Covered Funds before the withdrawal times the contract value in Covered Funds after the withdrawal divided by the contract value in Covered Funds before the withdrawal. Net transfers from Covered Funds will reduce the MGIB Base allocated to Covered Funds on a pro--rata basis. The resulting increase in the MGIB Base allocated to Special or Excluded Funds, as applicable, will equal the reduction in the MGIB Base allocated to Covered Funds. Net transfers from Special Funds will reduce the MGIB Base allocated to Special Funds on a pro--rata basis. The resulting increase in the MGIB Base allocated to Covered or Excluded Funds, as applicable, will equal the reduction in the MGIB Base allocated to Special Funds. Net transfers from Excluded Funds will reduce the MGIB Base allocated to Excluded Funds on a pro--rata basis. The resulting increase in the MGIB Base allocated to Covered or Special Funds, as applicable, will equal the lesser of the net contract value transferred and the change in the MGIB Base allocated to Excluded Funds. 2. THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT AND PREMIUM TAXES) BY THE APPLICABLE INCOME FACTOR, AND THEN DIVIDING BY $1,000. The MGIB Income Options are available under the MGIB Rider: (i) Income for Life (Single Life or Joint with 100% Survivor) and 10--30 Year Certain; (ii) Income for a 20--30 Year Period Certain; or (iii)Any other income plan offered by the Company in connection with the MGIB rider on the MGIB Benefit Date. On the MGIB Benefit Date, we would apply the MGIB Benefit Base under the Table of Income Factors specified in the MGIB rider for the Income Option you selected. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. Then we compare the MGIB annuity income under the rider guarantee for the option selected with the annuity income under your Contract for the same option. The greater amount of income will be available to you on the MGIB Benefit Date. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten--year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30--day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten year waiting period before you can annuitize under the MGIB rider. THE MGIB BENEFIT DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Benefit Date is the contract anniversary on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. If you added the MGIB rider at any other time, your MGIB Benefit Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuitize under the MGIB rider. NO CHANGE OF ANNUITANT. Once the MGIB rider is purchased, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. NOTIFICATION. On or about 30 days prior to the MGIB Benefit Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise. The actual amount of the MGIB annuity benefit will be determined as of the MGIB Benefit Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN THE MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. - -------------------------------------------------------------------------------- APPENDIX L - -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFIT CHARGES FOR YR-2003 CONTRACT OWNERS AND OPTIONAL RIDER BENEFITS FOR MAY-2002 AND YR-2003 CONTRACT OWNERS The following is a description of the Minimum Guaranteed Accumulation Benefit and the Minimum Guaranteed Withdrawal Benefit for May-2002 and Yr-2003 contract owners who elected an optional rider benefit. OTHER THAN AS SPECIFIED BELOW, PLEASE SEE THE PROSPECTUS FOR A COMPLETE DESCRIPTION OF YOUR OPTIONAL RIDER BENEFITS. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. OPTIONAL RIDER CHARGES Minimum Guaranteed Accumulation Benefit rider:* - ----------------- ------------------------------ ------------------------------ Waiting Period As an Annual Charge As a Quarterly Charge - ----------------- ------------------------------ ------------------------------ 10 Year 0.65% of the MGAB Charge Base 0.1625% of the MGAB Charge Base 20 Year 0.65% of the MGAB Charge Base 0.1625% of the MGAB Charge Base - ----------------- ------------------------------ ------------------------------ * The MGAB Charge Base is the total of premiums added during the two-year period commencing on the rider date if you purchase the rider on the contract date, or, your contract value on the rider date plus premiums added during the two-year period commencing on the rider date if you purchased the rider after the contract date, reduced pro-rata for all withdrawals taken while the MGAB rider is in effect, and reduced pro-rata for transfers made during the three year period before the MGAB Date. The MGAB Charge Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers may reduce the applicable MGAB Charge Base by more than the amount withdrawn or transferred. Minimum Guaranteed Withdrawal Benefit rider: - -------------------------------- ----------------------------------------------- As an Annual Charge As a Quarterly Charge - -------------------------------- ----------------------------------------------- 0.65% of contract value 0.1625% of the MGWB Eligible Payment Amount** - -------------------------------- ----------------------------------------------- ** The MGWB Eligible Payment Amount is (i) the total of premiums and credit paid during the 2-year period commencing on the rider date if you purchase the rider on the contract date; or (ii) your contract value on the rider date plus subsequent premiums and credits applied during the two-year period commencing on the rider date. OPTIONAL RIDER BENEFITS MINIMUM GUARANTEED ACCUMULATION BENEFIT RIDER (MGAB). The MGAB rider is an optional benefit which provides you with an MGAB intended to guarantee a minimum contract value at the end of a specified waiting period. Only premiums added to your Contract during the first two-year period after your rider date are included in the MGAB Base. Any additional premium payments added after the second rider anniversary are not included in the MGAB Base. Thus, the MGAB rider may not be appropriate for you if you plan to add substantial premium payments after your second rider anniversary The MGAB is a one-time adjustment to your contract value if your contract value on the MGAB Date is less than the MGAB Base. The MGAB Date is the next business day after the applicable waiting period. We calculate your Minimum Guaranteed Accumulation Benefit on this date. The MGAB rider may offer you protection if your Contract loses value during the MGAB waiting period. For a discussion of the charges we deduct under the MGAB rider, see "Optional Rider Charges." The MGAB rider offers a ten-year option and a twenty-year option, of which you may purchase only one. The ten-year option has a waiting period of ten years and, other than for allocations to Excluded Funds and certain transfers, guarantees that your contract value at the end of ten years will at least equal your initial premium payment, reduced pro-rata for withdrawals. Transfers made within 3 years prior to the MGAB Date will also reduce the MGAB Base pro-rata. The twenty-year option has a waiting period of twenty years and, other than allocations to Special Funds or Excluded Funds, guarantees that your contract value at the end of twenty years will at least equal two times your initial premium payment, reduced pro-rata for withdrawals and reduced for transfers made within 3 years prior to the MGAB Date. If you add the 20 year option rider after the contract date, any payment of premiums after the rider date, and/or investments in the Special or Excluded Funds, may prevent the MGAB Base from doubling over the waiting period. CALCULATING THE MGAB. We calculate your MGAB as follows: 1) WE FIRST DETERMINE YOUR MGAB BASE. The MGAB Base is only a calculation used to determine the MGAB. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your annuity income, cash surrender value and death benefits. The MGAB Base is tracked separately for Covered, Special and Excluded Funds, based on the initial allocation of premium (or contract value), subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The aggregate MGAB Base is used to determine the MGAB on the MGAB Date. The aggregate MGAB Base equals the sum of: a) the MGAB Base allocated to Covered Funds; b) the MGAB Base allocated to Special Funds; and c) the LESSER OF the contract value allocated to Excluded Funds or MGAB Base allocated to Excluded Funds. No investment options are currently designated as Special Funds for the ten-year MGAB. The following investment options are designated as Special Funds for the twenty-year MGAB: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFund VP Rising Rates Opportunity Portfolio; the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFund VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The MGAB Base for both the Covered Funds and the Excluded Funds equals the allocated eligible premiums, adjusted for subsequent withdrawals and transfers, accumulated until the MGAB Date at 0% for the ten-year MGAB and 3.5265% for the twenty-year MGAB. The MGAB Base for Special Funds equals the allocated eligible premiums, adjusted for subsequent withdrawals and transfers. There is no accumulation of MGAB Base for Special Funds for either the ten-year or twenty-year MGAB. If you purchased the MGAB optional benefit rider after the contract date, your MGAB Base equals your allocated contract value, plus premiums added during the two-year period after your rider date, accumulated at the appropriate MGAB rate described above, and adjusted for withdrawals and transfers. We use the MGAB Charge Base to determine the periodic MGAB rider charges. The MGAB Charge Base equals the eligible premiums, adjusted for subsequent withdrawals and transfers, as allocated by fund category. The MGAB Charge Base is tracked separately for Covered, Special and Excluded Funds, and separate rates may apply to each. Currently, the same deduction method and rate apply to all categories. Withdrawals reduce the MGAB Base and MGAB Charge Base on a pro-rata basis. The percentage reduction in the MGAB Base and MGAB Charge Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. Net Transfers from Covered Funds or Special Funds to Excluded Funds reduce the MGAB Base and MGAB Charge Base allocated to Covered Funds or Special Funds on a pro-rata basis. Any resulting increase in MGAB Base and MGAB Charge Base allocated to Excluded Funds will equal the reduction in the MGAB Base and MGAB Charge Base allocated to Covered Funds or Special Funds. There will be no such increase if the transfer occurs within 3 years of the MGAB Date. Net Transfers from Excluded Funds to other funds reduce the MGAB Base and MGAB Charge Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in MGAB Base and MGAB Charge Base allocated to other funds will equal the LESSER OF the contract value transferred and the change in the MGAB Base and MGAB Charge Base allocated to Excluded Funds. There will be no such increase if the transfer occurs within 3 years of the MGAB Date. Any transfer within 3 years of the MGAB Date (regardless of the funds involved) reduces the MGAB Base and MGAB Charge Base for Covered, Special or Excluded Funds, as applicable, on a pro-rata basis, based on the percentage of contract value transferred, without any corresponding increase. 2) WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB DATE FROM YOUR AGGREGATE MGAB BASE. The contract value that we subtract includes both the contract value in the subaccounts in which you are invested and the contract value in your Fixed Interest Allocations, if any. 3) ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it on the MGAB Date to the subaccounts in which you are invested pro-rata based on the proportion of your contract value in the subaccounts on that date, unless you have previously given us other allocation instructions. If you do not have an investment in any subaccount on the MGAB Date, we will allocate the MGAB to the Liquid Assets subaccount on your behalf. After we credit the MGAB, the amount of your annuity income, cash surrender value and death benefits will reflect the crediting of the MGAB to your contract value to the extent the contract value is used to determine such value. PURCHASE. To purchase the MGAB rider, you must be age 80 or younger on the Rider Date if you choose the ten-year option and age 65 or younger on the rider date if you choose the twenty-year option. The waiting period must end at or before your annuity start date. The MGAB rider may be purchased (i) on the contract date, and (ii) within 30 days following the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. THE MGAB DATE. If you purchased the MGAB rider on the contract date or added the MGAB rider within 30 days following the contract date, the MGAB Date is your 10th contract anniversary for the ten-year option or 20th contract anniversary for the twenty-year option. If you added the MGAB rider during the 30-day period preceding your first contract anniversary after the date of this prospectus, your MGAB Date will be the first contract anniversary occurring after 10 years (for the ten-year option) or 20 years (for the twenty-year option) after the rider date. The MGAB rider is not available if the MGAB Date would fall beyond the latest annuity start date. CANCELLATION. If you elected the twenty-year option, you have a one-time right to cancel the MGAB rider on your first contract anniversary that is at least 10 years after the rider date. If you purchased the MGAB rider during the 30-day period following the contract date, your one-time right to cancel the rider occurs on the tenth anniversary of your contract date. To cancel, you need to send written notice to our Customer Service Center at least 30 days before such anniversary date. If you terminate the MGAB rider before the MGAB Date, we will not credit you with the MGAB and we will assess the pro-rata portion of the MGAB rider charge for the current quarter. NOTIFICATION. We will report any crediting of the MGAB in your first quarterly statement following the MGAB Date. MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER (MGWB). The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero you will receive periodic payments equal to all premium payments paid during the first two contract years (Eligible Payment Amount) adjusted for any prior withdrawals. To maintain this guarantee, withdrawals in any contract year may not exceed 7% of your adjusted Eligible Payment Amount. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. For a discussion of the charges we deduct under the MGWB rider, see "Charges and Fees -- Optional Rider Charges." Each payment you receive under the MGWB rider will be taxed as a withdrawal and may be subject to a penalty tax. See "Withdrawals" and "Federal Tax Considerations" for more information. Your original Eligible Payment Amount depends on when you purchase the MGWB rider and equals: 1) your premium payments received during the first two contract years, if you purchased the MGWB rider on the contract date; 2) otherwise, your contract value on the rider date, including any premiums received that day, and any subsequent premium payments received during the two-year period commencing on the rider date, if you purchased the MGWB rider after the contract date. THE MGWB WITHDRAWAL ACCOUNT. The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. The MGWB Withdrawal Account is equal to the Eligible Payment Amount, tracked separately for Covered and Excluded Funds, adjusted for any withdrawals and transfers between Covered and Excluded Funds. THE MGWB WITHDRAWAL ACCOUNT EQUALS THE SUM OF (A) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO COVERED FUNDS, AND (B) THE LESSER OF (I) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO EXCLUDED FUNDS AND (II) THE CONTRACT VALUE IN EXCLUDED FUNDS. THUS, INVESTING IN THE EXCLUDED FUNDS MAY LIMIT THE MGWB WITHDRAWAL ACCOUNT. No investment options are currently designated as Excluded Funds for the Minimum Guaranteed Withdrawal Benefit. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal for Covered Funds and pro rata for Excluded Funds, based on the source of the withdrawal. Any withdrawals greater than the 7% per year of the Eligible Payment Amount will cause a reduction in the MGWB Withdrawal Account of the Covered and Excluded Funds, by the proportion that the withdrawal bears to the contract value in Covered and Excluded Funds, respectively, at the time of the withdrawal. If a single withdrawal involves both Covered and Excluded Funds and exceeds 7%, the withdrawal will be treated as taken first from Covered Funds. Any withdrawals greater than 7% per year of the Eligible Payment Amount will also cause a reduction in the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. Once your contract value is zero, any periodic payments paid under the MGWB rider also reduce the MGWB Withdrawal Account. If a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Covered Funds to Excluded Funds will reduce the MGWB Withdrawal Account allocated to Covered Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Excluded Funds equals the reduction in the MGWB Withdrawal Account for Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the MGWB Withdrawal Account allocated to Excluded Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Covered Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Excluded Funds or the net contract value transferred. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." However, making any withdrawals in any year greater than 7% per year of the Eligible Payment Amount will reduce the Eligible Payment Amount for future withdrawals and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider will remain in force and you may continue to make withdrawals each year so long as: 1) your contract value is greater than zero; 2) your MGWB Withdrawal Account is greater than zero; 3) you have not reached your latest allowable annuity start date; 4) you have not elected to annuitize your Contract; and 5) you have not died (unless your spouse has elected to continue the Contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero, your Contract is given Automatic Periodic Benefit Status, if: 1) your MGWB Withdrawal Account is greater than zero; 2) you have not reached your latest allowable annuity start date; 3) you have not elected to annuitize your Contract; and 4) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, we will pay you the annual MGWB periodic payments, beginning on the next contract anniversary. These payments are equal to the lesser of the remaining MGWB Withdrawal Account or 7% annually of your Eligible Payment Amount, until the earliest of (i) your Contract's latest annuity start date, (ii) the death of the owner; or (iii) your MGWB Withdrawal Account is exhausted. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status, we will not accept any additional premium payments in your Contract and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of (i) payment of all MGWB periodic payments, (ii) payment of the Commuted Value (defined below) or (iii) the owner's death. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then-remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury STRIPS as quoted by a national quoting service for period(s) applicable to the remaining payments. Once we pay you the last MGWB periodic payment or the Commuted Value, your Contract and the MGWB rider terminate. DEATH BENEFIT DURING AUTOMATIC PERIODIC BENEFIT STATUS. The death benefit payable during Automatic Periodic Benefit Status is your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. PURCHASE. To purchase the MGWB rider, you must be age 80 or younger on the Rider Date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. If the rider is not yet available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. ING [LOGO] ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA Annuity and Life Insurance Company is a stock company domiciled in Iowa. - -------------------------------------------------------------------------------- Landmark 02/XX/2004 - -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY PROSPECTUS WELLS FARGO ING LANDMARK - -------------------------------------------------------------------------------- FEBRUARY XX, 2004 This prospectus describes Wells Fargo ING Landmark, a group and individual deferred variable annuity contract (the "Contract") offered by ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we," "us" or "our"). The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("qualified Contracts") as well as those that do not qualify for such treatment ("non-qualified Contracts"). The Contract provides a means for you to invest your premium payments in one or more mutual fund investment portfolios. You may also allocate premium payments to our Fixed Account with guaranteed interest periods. Your contract value will vary daily to reflect the investment performance of the investment portfolio(s) you select and any interest credited to your allocations in the Fixed Account. For Contracts sold in some states, not all Fixed Interest Allocations or subaccounts are available. The investment portfolios available under your Contract and the portfolio managers are listed on the next page. You have a right to return a Contract within 10 days after you receive it for a refund of the adjusted contract value (which may be more or less than the premium payments you paid), or if required by your state, the original amount of your premium payment. Longer free look periods apply in some states and in certain situations. REPLACING AN EXISTING ANNUITY WITH THE CONTRACT MAY NOT BE BENEFICIAL TO YOU. YOUR EXISTING ANNUITY MAY BE SUBJECT TO FEES OR PENALTIES ON SURRENDER, AND THE CONTRACT MAY HAVE NEW CHARGES. This prospectus provides information that you should know before investing and should be kept for future reference. A Statement of Additional Information ("SAI"), dated February XX, 2003, has been filed with the Securities and Exchange Commission ("SEC"). It is available without charge upon request. To obtain a copy of this document, write to our Customer Service Center at P.O. Box 9271, Des Moines, Iowa 50306-9271 or call (800) 366-0066, or access the SEC's website (http://www.sec.gov). The table of contents of the SAI is on the last page of this prospectus and the SAI is made part of this prospectus by reference. THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN ANY SUBACCOUNT THROUGH A TRUST OR FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED BY ANY BANK OR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. - -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS AND THE MANAGERS ARE LISTED ON THE NEXT PAGE. - -------------------------------------------------------------------------------- The investment portfolios available under your Contract and the portfolio managers are:
A I M CAPITAL MANAGEMENT, INC. MASSACHUSETTS FINANCIAL SERVICES COMPANY ING AIM Mid Cap Growth Portfolio (Class S) (1) ING MFS Mid Cap Growth Portfolio (Class S) (1) ALLIANCE CAPITAL MANAGEMENT L.P. ING MFS Research Portfolio (Class S) (1) ING Alliance Mid Cap Growth Portfolio (Class S) (1) PACIFIC INVESTMENT MANAGEMENT COMPANY LLC BARING INTERNATIONAL INVESTMENT LIMITED ING PIMCO Core Bond Portfolio (Class S) (1) ING Developing World Portfolio (Class S) (1) ING PIMCO High Yield Portfolio (Class S) EAGLE ASSET MANAGEMENT, INC. PROFUND ADVISORS LLC ING Eagle Asset Value Equity Portfolio (Class S) (1) ProFund VP Bull FIDELITY(R)MANAGEMENT & RESEARCH CO. ProFund VP Small-Cap Fidelity(R)VIP Equity-Income Portfolio (Class S2) SALOMON BROTHERS ASSET MANAGEMENT, INC. ING FMRSM Diversified Mid Cap Portfolio (Class S) (1) ING Salomon Brothers All Cap Portfolio (Class S) (1) ING INVESTMENTS, LLC ING Salomon Brothers Investors Portfolio (Class S) (1) ING VP Bond Portfolio (Class S) ING Salomon Brothers Aggressive Growth Portfolio (Class ING VP Growth Opportunities Portfolio (Class S) S)(2) ING VP Index Plus LargeCap Portfolio (Class S) T. ROWE PRICE ASSOCIATES, INC. ING VP MagnaCap Portfolio (Class S) ING T. Rowe Price Equity Income Portfolio (Class S) (1) ING VP SmallCap Opportunities Portfolio ING T. Rowe Price Capital Appreciation Portfolio (Class S) (Class S) (1) ING VP Worldwide Growth Portfolio (Class S) VAN KAMPEN J.P. MORGAN FLEMING ASSET MANAGEMENT ING Van Kampen Global Franchise Portfolio (LONDON) LTD. (Class S) (1) ING JPMorgan Fleming International Portfolio ING Van Kampen Real Estate Portfolio (Class S) (1) (Class S) (2) ING Van Kampen Growth and Income Portfolio J.P. MORGAN INVESTMENT MANAGEMENT INC. (Class S) (1) ING JPMorgan Small Cap Equity Portfolio (Class S) (1) WELLS FARGO FUNDS MANAGEMENT, LLC JANUS CAPITAL MANAGEMENT LLC Wells Fargo VT Asset Allocation Fund ING Janus Growth and Income Portfolio (Class S) (1) Wells Fargo VT Equity Income Fund ING Janus Special Equity Portfolio (Class S) (1) Wells Fargo VT Equity Value Fund JENNISON ASSOCIATES LLC Wells Fargo VT Large Company Growth Fund ING Jennison Equity Opportunities Portfolio Wells Fargo VT Money Market Fund (Class S) (1) Wells Fargo VT Small Cap Growth Fund JULIUS BAER INVESTMENT MANAGEMENT, INC. Wells Fargo VT Total Return Bond Fund ING Julius Baer Foreign Portfolio (Class S) (1) MARSICO CAPITAL MANAGEMENT, LLC ING Marsico Growth Portfolio (Class S) (1)
(1) The investment adviser for this portfolio is Directed Services, Inc. The portfolio manager listed is the sub-adviser. Directed Services, Inc. is an affiliated Company of ING Groep, N.V. (2) The investment advisor for this portfolio is ING Life Insurance and Annuity Company. The portfolio manager listed is the sub-adviser. The above mutual fund investment portfolios are purchased and held by corresponding divisions of our Separate Account B. We refer to the divisions as "subaccounts" and the money you place in the Fixed Account's guaranteed interest periods as "Fixed Interest Allocations" in this prospectus. - -------------------------------------------------------------------------------- TABLE OF CONTENTS - --------------------------------------------------------------------------------
PAGE PAGE Index of Special Terms.............................. ii Other Contracts..................................... 28 Fees and Expenses................................... 1 Withdrawals......................................... 29 Condensed Financial Information..................... 4 Transfers Among Your Investments.................... 32 Accumulation Unit................................. 4 Death Benefit Choices............................... 35 The Net Investment Factor......................... 4 Death Benefit During the Accumulation Phase....... 35 Performance Information........................... 5 Standard Death Benefit........................ 36 Financial Statements.............................. 5 Enhanced Death Benefit Options................ 36 ING USA Annuity and Life Insurance Company.......... 6 Earnings Multiplier Benefit Rider............. 38 ING USA Separate Account B.......................... 6 Death Benefit During the Income Phase............. 39 The Trusts and Funds................................ 7 Continuation After Death-- Spouse................. 39 Covered Funds, Special Funds and Excluded Continuation After Death-- Not a Spouse........... 39 Funds ........................................... 8 Required Distributions Upon Contract Charges and Fees.................................... 9 Owner's Death................................. 40 Charge Deduction Subaccount....................... 9 The Annuity Options................................. 41 Charges Deducted from the Contract Value.......... 9 Other Contract Provisions........................... 43 Surrender Charge.............................. 9 Other Information................................... 45 Waiver of Surrender Charge for Extended Federal Tax Considerations.......................... 46 Medical Care............................... 9 Statement of Additional Information Free Withdrawal Amount........................ 10 Table of Contents................................. 55 Surrender Charge for Excess Withdrawals....... 10 Appendix A Premium Taxes................................. 10 Condensed Financial Information................... A1 Administrative Charge......................... 10 Appendix B Transfer Charge............................... 11 The Investment Portfolios......................... B1 Charges Deducted from the Subaccounts............. 11 Appendix C Mortality and Expense Risk Charge............. 11 Fixed Account II.................................. C1 Asset-Based Administrative Charge............. 11 Appendix D Earnings Multiplier Benefit Charge............ 11 Fixed Interest Division........................... D1 Optional Rider Charges........................ 11 Appendix E Trust and Fund Expenses........................... 12 Surrender Charge for Excess Withdrawals The Annuity Contract................................ 12 Example....................................... E1 Contract Date and Contract Year .................. 12 Appendix F Contract Owner.................................... 12 Withdrawal Adjustment for 7% Solution Annuity Start Date................................ 14 Death Benefit Examples........................ F1 Annuitant......................................... 14 Appendix G Beneficiary....................................... 14 Special Funds and Excluded Funds Examples......... G1 Purchase and Availability of the Contract......... 15 Appendix H Crediting of Premium Payments..................... 16 Death Benefits for Yr-2001 Contract Owners........ H1 Administrative Procedures......................... 17 Appendix I Contract Value.................................... 17 Death Benefits for May-2002 and Yr-2003 Cash Surrender Value.............................. 18 Contract Owners............................... I1 Addition, Deletion or Substitution of Appendix J Subaccounts and Other Changes................. 18 Optional Rider Benefits for Yr-2001 The Fixed Account................................. 19 Contract Owners............................... J1 Optional Riders..................................... 19 Appendix K Rider Date........................................ 19 Optional Rider Benefit Charges and Minimum No Cancellation................................... 19 Guaranteed Income Benefit for May-2002 Termination....................................... 19 Contract Owners............................... K1 Minimum Guaranteed Accumulation Appendix L Benefit Rider................................. 19 Optional Rider Benefit Charges and Optional Minimum Guaranteed Income Benefit Rider........... 22 Benefit Riders for May-2002 and Yr-2003 Minimum Guaranteed Withdrawal Contract Owners............................... L1 Benefit Rider................................. 26
- -------------------------------------------------------------------------------- INDEX OF SPECIAL TERMS - -------------------------------------------------------------------------------- The following special terms are used throughout this prospectus. Refer to the page(s) listed for an explanation of each term: SPECIAL TERM PAGE ----------------------------------------------------- --------- Accumulation Unit 4 Annuitant 14 Annuity Start Date 14 Cash Surrender Value 18 Contract Date 12 Claim Date 35 Contract Owner 12 Contract Value 17 Contract Year 12 Covered Fund 8 Earnings Multiplier Benefit 38 Excluded Fund 8 Free Withdrawal Amount 10 Max 7 Enhanced Death Benefit 38 Net Investment Factor 4 Net Rate of Return 5 Quarterly Ratchet Enhanced Death Benefit 37 Restricted Funds 8 Rider Date 19 7% Solution Death Benefit Element 36 Special Fund 8 Standard Death Benefit 36 The following terms as used in this prospectus have the same or substituted meanings as the corresponding terms currently used in the Contract: TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT ---------------------------------- --------------------------------------- Accumulation Unit Value Index of Investment Experience Annuity Start Date Annuity Commencement Date Contract Owner Owner or Certificate Owner Contract Value Accumulation Value Transfer Charge Excess Allocation Charge Fixed Interest Allocation Fixed Allocation Free Look Period Right to Examine Period Guaranteed Interest Period Guarantee Period Subaccount(s) Division(s) Net Investment Factor Experience Factor Regular Withdrawals Conventional Partial Withdrawals Withdrawals Partial Withdrawals - -------------------------------------------------------------------------------- FEES AND EXPENSES - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract, or transfer contract value between investment options. State premium taxes may also be deducted. CONTRACT OWNER TRANSACTION EXPENSES/1/ Surrender Charge: COMPLETE YEARS ELAPSED 0 1 2 3 4+ SINCE PREMIUM PAYMENT SURRENDER CHARGE 6% 5% 4% 3% 0% Transfer Charge/2/.......................... $25 per transfer, if you make more than 12 transfers in a contract year 1 If you invested in a Fixed Interest Allocation, a Market Value Adjustment may apply to certain transactions. This may increase or decrease your contract value and/or your transfer or surrender amount. 2 We currently do not impose this charge, but may do so in the future. The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Trust or Fund fees and expenses. ANNUAL CONTRACT ADMINISTRATIVE CHARGE/3/......... $30 (We waive this charge if the total of your premium payments is $100,000 or more or if your contract value at the end of a contract year is $100,000 or more.) 3 We deduct this charge on each contract anniversary and on surrender. SEPARATE ACCOUNT ANNUAL CHARGES/4/
---------------------------------------------------------------------------------------- ENHANCED DEATH BENEFITS STANDARD ----------------------- DEATH QUARTERLY BENEFIT RATCHET MAX 7 ---------------------------------------------------------------------------------------- Mortality & Expense Risk Charge 1.50% 1.75% 1.95% Asset-Based Administrative Charge 0.15% 0.15% 0.15% Total 1.65% 1.90% 2.10% ----------------------------------------------------------------------------------------
4 As a percentage of average daily assets in each subaccount. The Separate Account Annual Charges are deducted daily. EARNINGS MULTIPLIER BENEFIT RIDER CHARGE/5/ ---------------------------- ------------------------- As an Annual Charge As a Quarterly Charge ---------------------------- ------------------------- 0.30% of contract value 0.075% of contract value ---------------------------- ------------------------- 5 We deduct the rider charge from the subaccounts in which you are invested on each quarterly contract anniversary and pro-rata on termination of the Contract; if the value in the subaccounts is insufficient, the rider charge will be deducted from the Fixed Interest Allocation(s) nearest maturity, and the amount deducted may be subject to a Market Value Adjustment. OPTIONAL RIDER CHARGES/6/ MINIMUM GUARANTEED INCOME BENEFIT RIDER:
-------------- ---------------------------------- ---------------------------------- MGIB Rate As an Annual Charge As a Quarterly Charge -------------- ---------------------------------- ---------------------------------- 7% 0.75% of the MGIB Charge Base/7/ 0.1875% of the MGIB Charge Base/7/ -------------- ---------------------------------- ----------------------------------
MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER: ------------------------- --------------------------- As an Annual Charge As a Quarterly Charge ------------------------- --------------------------- 0.35% of contract value 0.0875% of contract value ------------------------- --------------------------- 6 We deduct optional rider charges from the subaccounts in which you are invested on each quarterly contract anniversary and pro-rata on termination of the Contract; if the value in the subaccounts is insufficient, the optional rider charges will be deducted from the Fixed Interest Allocation(s) nearest maturity, and the amount deducted may be subject to a Market Value Adjustment. 7 The MGIB Charge Base generally depends on the amount of premiums you pay during the first five contract years after you purchase the rider, when you pay the premiums, less a pro-rata deduction for any withdrawal made while the MGIB rider is in effect and accumulated at the MGIB Rate. The MGIB Charge Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers between Covered, Special and Excluded Funds may reduce the applicable MGIB Charge Base by more than the amount withdrawn or transferred. TRUST OR FUND EXPENSES The next item shows the minimum and maximum total operating expenses charged by the Trust or Fund that you may pay periodically during the time that you own the Contract. More detail concerning each Trust or Fund's fees and expenses is contained in the prospectus for each Trust or Fund.
---------------------------------------------------------------------------- ------------------ ----------------- TOTAL ANNUAL TRUST OR FUND OPERATING EXPENSES/8/ MINIMUM MAXIMUM ---------------------------------------------------------------------------- ------------------ ----------------- (expenses that are deducted from Trust or Fund assets, including management fees, distribution and/or service (12b-1) fees/9/, and other 0.53% 2.13% expenses): ---------------------------------------------------------------------------- ------------------ -----------------
8 The minimum and maximum total operating expenses charged by a Trust or Fund including applicable expense reimbursement or fee waiver arrangements would be 0.53% to 1.98%. The expense reimbursement or fee arrangement reflected is expected to continue through December 31, 2003. 9 The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in the Fund or Trust prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. The following table shows the annual operating expenses separately for each Trust or Fund. FUND EXPENSE TABLE/1/ The column labeled "Gross Expense Ratio" shows the total annual operating expenses charged by a Trust or Fund, absent expense reimbursement or fee waiver arrangements. The column labeled "Net Expense Ratio" shows such total annual operating expenses after applicable expense reimbursement or fee waiver arrangements where such reimbursement or waiver is expected to continue through December 31, 2003.
- ------------------------------------------------------------------------------------------------------------------------- FUND NAME TOTAL FUND NET FUND DISTRIBUTION ANNUAL ANNUAL AND/OR EXPENSES TOTAL EXPENSES INVESTMENT SERVICE WITHOUT WAIVERS AFTER ADVISORY (12B-1) OTHER WAIVERS OR OR WAIVERS OR FEES FEE EXPENSES REDUCTIONS REDUCTIONS REDUCTIONS - ------------------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio (Class S2) 0.48% 0.25% 0.10% 0.83% 0.00% 0.83% ING AIM Mid Cap Growth Portfolio (Class S) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Alliance Mid Cap Growth Portfolio (Class S) 0.78% 0.25% 0.02% 1.05% 0.00% 1.05% ING Developing World Portfolio (Class S) 1.50% 0.25% 0.01% 1.76% 0.00% 1.76% ING Eagle Asset Value Equity Portfolio (Class S)/2/ 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING FMR Diversified Mid Cap Portfolio (Class S) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Janus Growth and Income Portfolio (Class S)/2/ 0.85% 0.25% 0.01% 1.11% 0.00% 1.11% ING Janus Special Equity Portfolio (Class S) 0.85% 0.25% 0.01% 1.11% 0.00% 1.11% ING Jennison Equity Opportunities Portfolio (Class S) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING JPMorgan Fleming International Portfolio (Service Class) 0.80% 0.25% 0.20% 1.25% 0.00% 1.25% ING JPMorgan Small Cap Equity Portfolio (Class S)/2/ 0.90% 0.25% 0.01% 1.16% 0.00% 1.16% ING Julius Baer Foreign Portfolio (Class S) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Marsico Growth Portfolio (Class S) 0.78% 0.25% 0.01% 1.04% 0.00% 1.04% ING MFS Mid Cap Growth Portfolio (Class S) 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING MFS Research Portfolio (Class S)/2/ 0.64% 0.25% 0.02% 0.91% 0.00% 0.91% ING PIMCO Core Bond Portfolio (Class S) 0.66% 0.25% 0.02% 0.93% 0.00% 0.93% ING Salomon Brothers Aggressive Growth Portfolio (Service Class) 0.69% 0.25% 0.13% 1.07% 0.00% 1.07% ING Salomon Brothers All Cap Portfolio (Class S)/2/ 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING Salomon Brothers Investors Portfolio (Class S) 0.75% 0.25% 0.01% 1.01% 0.00% 1.01% ING T. Rowe Price Capital Appreciation Portfolio (Class S) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING T. Rowe Price Equity Income Portfolio (Class S) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Van Kampen Global Franchise Portfolio (Class S) 1.00% 0.25% 0.01% 1.26% 0.00% 1.26% ING Van Kampen Growth and Income Portfolio (Class S) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING Van Kampen Real Estate Portfolio (Class S) 0.69% 0.25% 0.01% 0.95% 0.00% 0.95% ING VP Bond Portfolio (Class S) 0.40% 0.25% 0.09% 0.74% 0.00% 0.74% ING VP Growth Opportunities Portfolio (Service Class) 0.75% 0.25% 0.58% 1.58% 0.48% 1.10% ING VP Index Plus LargeCap Portfolio (Class S) 0.35% 0.25% 0.11% 0.71% 0.00% 0.71% ING VP MagnaCap Portfolio (Service Class) 0.75% 0.25% 0.45% 1.45% 0.35% 1.10% ING VP SmallCap Opportunities Portfolio (Service Class) 0.75% 0.25% 0.49% 1.49% 0.39% 1.10% ING VP Worldwide Growth Portfolio (Service Class)/3/ 1.00% 0.25% 0.82% 2.07% 0.84% 1.23% PIMCO High Yield Portfolio (Class S)/4/ 0.25% 0.15% 0.36% 0.76% 0.01% 0.75% ProFund VP Bull 0.75% 0.25% 0.91% 1.91% 0.00% 1.91% ProFund VP Small-Cap 0.75% 0.25% 0.97% 1.97% 0.00% 1.97% Wells Fargo VT Asset Allocation Fund 0.55% 0.25% 0.23% 1.03% 0.03% 1.00% Wells Fargo VT Equity Income Fund 0.55% 0.25% 0.30% 1.10% 0.10% 1.00% Wells Fargo VT Equity Value Fund 0.55% 0.25% 0.48% 1.28% 0.28% 1.00% Wells Fargo VT Large Company Growth Fund 0.55% 0.25% 0.29% 1.09% 0.09% 1.00% Wells Fargo VT Money Market Fund 0.40% 0.25% 0.32% 0.97% 0.22% 0.75% Wells Fargo VT Small Cap Growth Fund 0.75% 0.25% 0.33% 1.33% 0.13% 1.20% Wells Fargo VT Total Return Bond Fund 0.45% 0.25% 0.33% 1.03% 0.13% 0.90%
Footnotes to the "Fund Expense Table" 1 The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in this Fund Expense Table and the fund prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. See "Fees - Fund Expenses" for additional information. 2 A portion of the brokerage commissions that these portfolios pay is used to reduce each portfolio's expenses. Including these reductions, the "Total Fund Annual Expenses After Waivers or Reductions" for each portfolio for the year ended December 31, 2002 would have been 0.94% for Eagle Asset Value Equity, 1.08% for Janus Growth and Income, 1.13% for JPMorgan Small Cap Equity, 0.84% for MFS Research and 1.01% for Salomon Brothers All Cap. This arrangement may be discontinued at any time. DSI has voluntarily agreed to waive a portion of its management fee for the MFS Research portfolio. Including these waivers, the "Total Fund Annual Expenses After Waivers or Reductions" for each portfolio for the year ended December 31, 2002 would have been 0.90%. This arrangement may be discontinued by DSI at any time. 3 ING Investments, LLC has entered into written expense limitation agreements with each Portfolio under which it will limit expenses of the Portfolio, excluding interest, taxes, brokerage and extraordinary expenses subject to possible reimbursement to ING Investments, LLC within three years. The amount of each Portfolio's expenses waived or reimbursed during the last fiscal year by ING Investments, LLC is shown under the heading "Total Waivers or Reductions" in the table above. The expense limit will continue through at least December 31, 2003. The expense limit is contractual and shall renew automatically for one-year terms unless the adviser provides written notice of the termination of the expense limitation agreement within 90 days of the end of the then-current term. 4 "Other Expenses" reflects an administrative fee of 0.35%, and the class's pro rata Trustees' fees. PIMCO has contractually agreed to reduce total annual portfolio operating expenses to the extent they would exceed, due to the payment of Trustees' fees, 0.75% of average daily net assets. Under the Expense Limitation Agreement, PIMCO may recoup these waivers and reimbursements in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. Premium taxes (which currently range from 0% to 3.5% of premium payments) may apply, but are not reflected in the above table or in the example below. EXAMPLE: This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annul expenses, and Trust or Fund fees and expenses. The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the maximum fees and expenses of any of the Trusts or Funds. Specifically, the Example assumes election of the Max 7 Enhanced Death Benefit and election of the earnings multiplier benefit rider with a charge of 0.30% of the contract value annually. The Example reflects the deduction of a mortality and expense risk charge, an asset-based administrative charge, and the annual contract administrative charge as an annual charge of 0.04% of assets. The Example also assumes you elected an optional benefit rider with the highest cost, an assumed charge of 1.14% annually, where the rider base is equal to the initial premium and increases by 7% annually, and the rider charge is assessed each quarter on a base equal to the hypothetical $10,000 premium increasing at 7% per year. The assumed annual rider charge of 1.14% results from the assumption of a 7% annual increase in the rider base but only a 5% earnings increase in the contract value before expenses. Thus, 1.14% represents an annual charge over the 10-year period which is equivalent to a charge of 0.1875% of rider base per quarter over the same period. Note that surrender charges may apply if you choose to annuitize your Contract within the first 4 contract years. The Example reflects the maximum charges for February-2004 contract owners. If you elect different options or are not a February-2004 contract owner, your expenses will be lower. The example also takes into account contractual limitations on Trust or Fund expenses that require reimbursement or waiver of expenses, but only for the period of the contractual limitation. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: ----------------------------------------------------------------------------- 1)If you surrender your contract at the end of the applicable time period: ----------------------------------------------------------------------------- 1 year 3 years 5 years 10 years $1,153 $2,079 $2,779 $5,470 2)If you annuitize at the end of the applicable time period: 1 year 3 years 5 years 10 years $1,153 $2,079 $2,779 $5,470 3)If you do not surrender your contract: 1 year 3 years 5 years 10 years $553 $1,679 $2,779 $5,470 ----- --------------------- -------------------- -------------------- ------- Compensation is paid for the sale of the Contracts. For information about this compensation, see "Selling the Contract." - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- ACCUMULATION UNIT We use accumulation units to calculate the value of a Contract. Each subaccount of Separate Account B has its own accumulation unit value. The accumulation units are valued each business day that the New York Stock Exchange is open for trading. Their values may increase or decrease from day to day according to a Net Investment Factor, which is primarily based on the investment performance of the applicable investment portfolio. Shares in the investment portfolios are valued at their net asset value. Tables containing (i) the accumulation unit value history of each subaccount of ING USA Separate Account B offered in this prospectus and (ii) the total investment value history of each such subaccount are presented in Appendix A -- Condensed Financial Information. The numbers show the year-end unit values of each subaccount from the time purchase payments were first received in the subaccounts under the Contract. THE NET INVESTMENT FACTOR The Net Investment Factor is an index number which reflects certain charges under the Contract and the investment performance of the subaccount. The Net Investment Factor is calculated for each subaccount as follows: 1) We take the net asset value of the subaccount at the end of each business day. 2) We add to (1) the amount of any dividend or capital gains distribution declared for the subaccount and reinvested in such subaccount. We subtract from that amount a charge for our taxes, if any. 3) We divide (2) by the net asset value of the subaccount at the end of the preceding business day. 4) We then subtract the applicable daily mortality and expense risk charge and the daily asset-based administrative charge from the subaccount. Calculations for the subaccounts are made on a per share basis. The Net Rate of Return equals the Net Investment Factor minus one. PERFORMANCE INFORMATION From time to time, we may advertise or include in reports to contract owners performance information for the subaccounts of Separate Account B, including the average annual total return performance, yields and other nonstandard measures of performance. Such performance data will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Except for the Wells Fargo VT Money Market subaccount, quotations of yield for the subaccounts will be based on all investment income per unit (contract value divided by the accumulation unit) earned during a given 30-day period, less expenses accrued during such period. Information on standard total average annual return performance will include average annual rates of total return for 1, 5 and 10 year periods, or lesser periods depending on how long Separate Account B has been investing in the portfolio. We may show other total returns for periods of less than one year. We will base total return figures on the actual historic performance of the subaccounts of Separate Account B, assuming an investment at the beginning of the period when the separate account first invested in the portfolios, and withdrawal of the investment at the end of the period, adjusted to reflect the deduction of all applicable portfolio and current contract charges. We may also show rates of total return on amounts invested at the beginning of the period with no withdrawal at the end of the period. Total return figures which assume no withdrawals at the end of the period will reflect all recurring charges, but will not reflect the surrender charge. In addition, we may present historic performance data for the investment portfolios since their inception reduced by some or all of the fees and charges under the Contract. Such adjusted historic performance includes data that precedes the inception dates of the subaccounts of Separate Account B. This data is designed to show the performance that would have resulted if the Contract had been in existence before the separate account began investing in the portfolios. Current yield for the Wells Fargo VT Money Market subaccount is based on income received by a hypothetical investment over a given 7-day period, less expenses accrued, and then "annualized" (i.e., assuming that the 7-day yield would be received for 52 weeks). We calculate "effective yield" for the Wells Fargo VT Money Market subaccount in a manner similar to that used to calculate yield, but when annualized, the income earned by the investment is assumed to be reinvested. The "effective yield" will thus be slightly higher than the "yield" because of the compounding effect of earnings. We calculate quotations of yield for the remaining subaccounts on all investment income per accumulation unit earned during a given 30-day period, after subtracting fees and expenses accrued during the period, assuming no surrender. YOU SHOULD BE AWARE THAT THERE IS NO GUARANTEE THAT THE WELLS FARGO VT MONEY MARKET SUBACCOUNT WILL HAVE A POSITIVE OR LEVEL RETURN. We may compare performance information for a subaccount to: (i) the Standard & Poor's 500 Stock Index, Dow Jones Industrial Average, Donoghue Money Market Institutional Averages, or any other applicable market indices, (ii) other variable annuity separate accounts or other investment products tracked by Lipper Analytical Services (a widely used independent research firm which ranks mutual funds and other investment companies), or any other rating service, and (iii) the Consumer Price Index (measure for inflation) to determine the real rate of return of an investment in the Contract. Our reports and promotional literature may also contain other information including the ranking of any subaccount based on rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by similar rating services. Performance information reflects only the performance of a hypothetical contract and should be considered in light of other factors, including the investment objective of the investment portfolio and market conditions. Please keep in mind that past performance is not a guarantee of future results. FINANCIAL STATEMENTS The statement of assets and liabilities of Separate Account B for the quarter ended September 30, 2003, and as of December 31, 2002, and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended are included in the Statement of Additional Information. The consolidated financial statements and schedules of Golden American for the quarter ended September 30, 2003, and as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002 are included in the Statement of Additional Information. - -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY - -------------------------------------------------------------------------------- ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings, Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in the Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. Golden American's consolidated financial statements appear in the Statement of Additional Information. Lion Connecticut is the holding company for Directed Services, Inc., the investment manager of the ING Investors Trust and the distributor of the Contracts, and other interests. ING also owns ING Investments, LLC and ING Investment Management, LLC, portfolio managers of the ING Investors Trust, and the investment managers of the ING Variable Insurance Trust and ING Variable Products Trust and ING Variable Product Portfolios, respectively. ING also owns Baring International Investment Limited, another portfolio manager of the ING Investors Trust. Our principal office is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380. - -------------------------------------------------------------------------------- ING USA SEPARATE ACCOUNT B - -------------------------------------------------------------------------------- ING USA Separate Account B ("Separate Account B") was established as a separate account of the Company on July 14, 1988. It is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 as amended (the "1940 Act"). Separate Account B is a separate investment account used for our variable annuity contracts. We own all the assets in Separate Account B but such assets are kept separate from our other accounts. Separate Account B is divided into subaccounts. Each subaccount invests exclusively in shares of one investment portfolio of a Trust or Fund. Each investment portfolio has its own distinct investment objectives and policies. Income, gains and losses, realized or unrealized, of a portfolio are credited to or charged against the corresponding subaccount of Separate Account B without regard to any other income, gains or losses of the Company. Assets equal to the reserves and other contract liabilities with respect to each are not chargeable with liabilities arising out of any other business of the Company. They may, however, be subject to liabilities arising from subaccounts whose assets we attribute to other variable annuity contracts supported by Separate Account B. If the assets in Separate Account B exceed the required reserves and other liabilities, we may transfer the excess to our general account. We are obligated to pay all benefits and make all payments provided under the Contracts. Note: We currently offer other variable annuity contracts that invest in Separate Account B, but are not discussed in this prospectus. Separate Account B may also invest in other investment portfolios which are not available under your Contract. Under certain circumstances, we may make certain changes to the subaccounts. For more information, see "The Annuity Contract -- Addition, Deletion, or Substitution of Subaccounts and Other Changes." - -------------------------------------------------------------------------------- THE TRUSTS AND FUNDS - -------------------------------------------------------------------------------- Investment portfolios of the following Trusts and Funds are currently available under your Contract. Fidelity Variable Insurance Products Fund is also a mutual fund which offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products. Fidelity Variable Insurance Products Fund and Fidelity Variable Insurance Products Fund II is located at 82 Devonshire Street, Boston, MA 02109. The ING Investors Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity and variable life insurance policies offered by ING USA and other affiliated insurance companies. The ING Investors Trust may also sell its shares to separate accounts of insurance companies not affiliated with ING USA and to certain qualified pension and retirement plans. The address of the ING Investors Trust is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. ING Partners, Inc. is a mutual fund whose shares are offered only to insurance companies to fund benefits under their variable annuity and variable life insurance contracts. The address of Portfolio Partners, Inc. is 151 Farmington Avenue, Hartford, Connecticut 06156-8962. ING Variable Insurance Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ING Variable Insurance Trust is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. ING Variable Portfolios, Inc. is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ING Variable Portfolios, Inc. is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. ING Variable Products Trust is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ING Variable Products Trust is 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258. The PIMCO Variable Insurance Trust is also a mutual fund whose shares are available to separate accounts of insurance companies, including ING USA, for both variable annuity contracts and variable life insurance policies and to qualified pension and retirement plans. The address of the PIMCO Variable Insurance Trust is 840 Newport Center Drive, Suite 300, Newport Beach, CA 92660. The ProFunds is a mutual fund whose shares are offered to separate accounts funding variable annuity contracts offered by ING USA and other insurance companies, both affiliated and unaffiliated with ING USA. The address of ProFunds is 3435 Stelzer Road, Suite 1000, PO Box 182100, Columbus, OH 43218-2000. The Wells Fargo Variable Trust is a mutual fund whose shares are available to separate accounts of participating insurance companies, including ING USA, for both variable annuity contracts and variable life insurance policies. The address of the Wells Fargo Variable Trust is 525 Market Street, San Francisco, CA. YOU WILL FIND MORE DETAILED INFORMATION ABOUT THE TRUSTS AND FUNDS IN APPENDIX B - -- THE INVESTMENT PORTFOLIOS. A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION ON EACH TRUST OR FUND MAY BE OBTAINED BY CALLING OUR CUSTOMER SERVICE CENTER AT 800-366-0066. YOU SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. If, due to differences in tax treatment or other considerations, the interests of contract owners of various contracts participating in the Trusts or Funds conflict, we, the Boards of Trustees or Directors of the Trusts or Funds, and any other insurance companies participating in the Trusts or Funds will monitor events to identify and resolve any material conflicts that may arise. RESTRICTED FUNDS We may, with 30 days notice to you, designate any investment option as a Restricted Fund and limit the amount you may allocate or transfer to a Restricted Fund. We may also change the limitations on existing contracts with respect to new premiums added to investment portfolios and with respect to new transfers to investment portfolios. We may establish any limitations, at our discretion, as a percentage of premium or contract value, or as a specified dollar amount, and change the limitation at any time. Currently, we have not designated any investment option as a Restricted Fund. If we designate an investment option as a Restricted Fund or set applicable limitations, such change will apply only to transactions made after the designation. We limit your investment in the Restricted Funds on an aggregate basis for all Restricted Funds and for each individual Restricted Fund. Currently, we limit an investment in Restricted Funds to the following limitations: no more than $999,999,999, and no more than 30 percent of contract value. We may change these limits, in our discretion, for new contracts, premiums, transfers or withdrawals. We monitor the aggregate and individual limits on investments in Restricted Funds for each transaction (e.g. premium payments, reallocations, withdrawals, dollar cost averaging). If the contract value in the Restricted Funds has increased beyond the applicable limit due to market growth, we will not require the reallocation or withdrawal of contract value from the Restricted Funds. However, if the contract value in the Restricted Funds exceed the aggregate limit, if you take a withdrawal, it must come from either the Restricted Funds or pro-rata from all investment options in which contract value is allocated, so that the percentage of contract value in the Restricted Funds following the withdrawal is less than or equal to the percentage of contract value in the Restricted Funds prior to the withdrawal. We will not permit a transfer to the Restricted Funds if it would increase the contract value in the Restricted Fund or in all Restricted Funds to more than the applicable limits set forth above. We will not limit transfers from Restricted Funds. If the multiple reallocations lower the percentage of total contract value in Restricted Funds, we will permit the reallocation even if the percentage of contract value in a Restricted Fund is greater than its limit. Please see "Withdrawals" and "Transfers Among Your Investments" in this prospectus for more information on the effect of Restricted Funds. - -------------------------------------------------------------------------------- COVERED FUNDS, SPECIAL FUNDS AND EXCLUDED FUNDS - -------------------------------------------------------------------------------- For purposes of determining death benefits and benefits under the optional benefit riders (but not the earnings multiplier benefit rider), we assign the investment options to one of three categories of funds. The categories are: 1) Covered Funds; 2) Special Funds; and 3) Excluded Funds. Allocations to Covered Funds participate fully in all guaranteed benefits. Allocations to Special Funds could affect the death benefit and/or optional benefit rider guarantee that may otherwise be provided. Allocations to Excluded Funds do not participate in any guaranteed benefits, due to their potential for volatility. No investment options are currently designated as Excluded Funds. Designation of investment options under these categories may vary by benefit. For example, we may designate an investment option a Special Fund for purposes of calculating a benefit under an optional benefit rider, but not a death benefit, or for calculating one death benefit and not another. We may, with 30 days notice to you, designate any investment option as a Special or Excluded Fund with respect to new premiums added to such investment option and also with respect to new transfers to such investment option. Please see Appendix G for examples. - -------------------------------------------------------------------------------- CHARGES AND FEES - -------------------------------------------------------------------------------- We deduct the contract charges described below to compensate us for our costs and expenses, services provided and risks assumed under the Contracts. We incur certain costs and expenses for distributing and administering the Contracts, including compensation and expenses paid in connection with sales of the Contracts, for paying the benefits payable under the Contracts and for bearing various risks associated with the Contracts. The amount of a contract charge will not always correspond to the actual costs associated with the charge. For example, the surrender charge collected may not fully cover all of the distribution expenses incurred by us with the service or benefits provided. If there are any profits from fees and charges deducted under the Contract, including the mortality and expense risk charge and rider and benefit charges, we may use such profits to finance the distribution of Contracts. CHARGE DEDUCTION SUBACCOUNT You may elect to have all charges against your contract value deducted directly from a single subaccount designated by the Company. Currently we use the Wells Fargo VT Money Market subaccount for this purpose. If you do not elect this option, or if the amount of the charges is greater than the amount in the designated subaccount, we will deduct the charges as discussed below. You may cancel this option at any time by sending satisfactory notice to our Customer Service Center. CHARGES DEDUCTED FROM THE CONTRACT VALUE We deduct the following charges from your contract value: SURRENDER CHARGE. We will deduct a contingent deferred sales charge (a "surrender charge") if you surrender your Contract or if you take a withdrawal in excess of the Free Withdrawal Amount during the 4-year period from the date we receive and accept a premium payment. We base the surrender charge on a percentage of each premium payment withdrawn. The surrender charge is based on the amount requested for withdrawal. The surrender charge is deducted from the contract value remaining after you have received the amount requested for withdrawal. This charge is intended to cover sales expenses that we have incurred. We may reduce or waive the surrender charge in certain situations. We will never charge more than the maximum surrender charges. The percentage of premium payments deducted at the time of surrender or excess withdrawal depends on the number of complete years that have elapsed since that premium payment was made. We determine the surrender charge as a percentage of each premium payment as follows: COMPLETE YEARS ELAPSED 0 1 2 3 4+ SINCE PREMIUM PAYMENT SURRENDER CHARGE 6% 5% 4% 3% 0% WAIVER OF SURRENDER CHARGE FOR EXTENDED MEDICAL CARE. We will waive the surrender charge in most states in the following events: (i) you begin receiving qualified extended medical care on or after the first contract anniversary for at least 45 days during a 60-day period and we receive your request for the surrender or withdrawal, together with all required documentation at our Customer Service Center during the term of your care or within 90 days after the last day of your care; or (ii) you are first diagnosed by a qualified medical professional, on or after the first contract anniversary, as having a qualifying terminal illness. We have the right to require an examination by a physician of our choice. If we require such an examination, we will pay for it. You are required to send us satisfactory written proof of illness. See your Contract for more information. The waiver of surrender charge may not be available in all states. FREE WITHDRAWAL AMOUNT. The Free Withdrawal Amount is the greater of (i) any earnings less previous withdrawals, and (ii) 10% of premium payments paid within 4 years prior to the date of withdrawal and not previously withdrawn, less any previous withdrawals taken in the same contract year. SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a surrender charge for excess withdrawals, which may include a withdrawal you make to satisfy required minimum distribution requirements under the Internal Revenue Code (the "Code"). We consider a withdrawal to be an excess withdrawal when the amount you withdraw in any contract year exceeds the Free Withdrawal Amount. When you are receiving systematic withdrawals, any combination of regular withdrawals taken and any systematic withdrawals expected to be received in a contract year will be included in determining the amount of the excess withdrawal. Such a withdrawal will be considered a partial surrender of the Contract and we will impose a surrender charge and any associated premium tax. We will deduct such charges from the contract value in proportion to the contract value in each subaccount or Fixed Interest Allocation from which the excess withdrawal was taken. In instances where the excess withdrawal equals the entire contract value in such subaccounts or Fixed Interest Allocations, we will deduct charges proportionately from all other subaccounts and Fixed Interest Allocations in which you are invested. ANY WITHDRAWAL FROM A FIXED INTEREST ALLOCATION MORE THAN 30 DAYS BEFORE ITS MATURITY DATE WILL TRIGGER A MARKET VALUE ADJUSTMENT. See Appendix C and the Fixed Account II prospectus for more information. For the purpose of calculating the surrender charge for an excess withdrawal: (i) we treat premiums as being withdrawn on a first-in, first-out basis; and (ii) amounts withdrawn which are not considered an excess withdrawal are not considered a withdrawal of any premium payments. We have included an example of how this works in Appendix E. Although we treat premium payments as being withdrawn before earnings for purpose of calculating the surrender charge for excess withdrawals, the federal tax law treats earnings as withdrawn first. PREMIUM TAXES. We may charge for state and local premium taxes depending on your state of residence. These taxes can range from 0% to 3.5% of the premium payment. We have the right to change this amount to conform with changes in the law or if you change your state of residence. We deduct the premium tax from your contract value or from the MGIB Base, if exercised, on the annuity start date. However, some jurisdictions impose a premium tax at the time initial and additional premiums are paid, regardless of when the annuity payments begin. In those states we may defer collection of the premium taxes from your contract value and deduct it when you surrender the Contract, when you take an excess withdrawal or on the annuity start date. ADMINISTRATIVE CHARGE. We deduct an annual administrative charge on each contract anniversary. If you surrender your Contract prior to a contract anniversary, we deduct an administrative charge when we determine the cash surrender value payable to you. The charge is $30 per Contract. We waive this charge if your contract value is $100,000 or more at the end of a contract year or the total of your premium payments is $100,000 or more or under other under conditions established by ING USA. We deduct the charge proportionately from all subaccounts in which you are invested. If there is no contract value in those subaccounts, we will deduct the charge from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until the charge has been paid. TRANSFER CHARGE. We currently do not deduct any charges for transfers made during a contract year. We have the right, however, to assess up to $25 for each transfer after the twelfth transfer in a contract year. The charge will not apply to any transfers due to the election of dollar cost averaging or automatic rebalancing. CHARGES DEDUCTED FROM THE SUBACCOUNTS MORTALITY AND EXPENSE RISK CHARGE. The amount of the mortality and expense risk charge depends on the death benefit you have elected. We deduct the charge each business day based on the assets you have in each subaccount. If there are any profits from the mortality and expense risk charge, we may use such profits to finance the distribution of Contracts.
------------------------------ ----------------------------- ---------------------------- QUARTERLY RATCHET MAX 7 STANDARD ENHANCED ENHANCED DEATH BENEFIT DEATH BENEFIT DEATH BENEFIT ---------------- ------------- -------------- -------------- ------------- -------------- Annual Annual Annual Charge Charge Charge Expressed Expressed as Expressed as Annual Charge as Daily Annual Charge Daily Rate Annual Daily Rate Rate Charge 1.50% 0.004141% 1.75% 0.004837% 1.95% 0.005395% ---------------- ------------- -------------- -------------- ------------- --------------
See "The Annuity Contract -- Contract Owner Categories." PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. ASSET-BASED ADMINISTRATIVE CHARGE. The amount of the asset-based administrative charge, on an annual basis, is equal to 0.15% of the assets you have in each subaccount. We deduct the charge from your assets in each subaccount on each business day at the rate of 0.000411% for each day since the previous business day. EARNINGS MULTIPLIER BENEFIT CHARGE. Subject to state availability, you may purchase the earnings multiplier benefit rider for a non-qualified Contract either at issue or on the next contract anniversary following the introduction of the benefit in your state, if later. So long as the rider is in effect, we will deduct a separate quarterly charge for the rider through a pro-rata reduction of the contract value of the subaccounts in which you are invested. If there is insufficient contract value in the subaccounts, we will deduct the charges from your Fixed Interest Allocations starting with the allocation nearest its maturity date. If that is insufficient, we will deduct the charge from the allocation next nearest its maturity date, and so on. We deduct the rider charge on each quarterly contract anniversary in arrears, meaning we deduct the first charge on the first quarterly anniversary following the rider date. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current contract value immediately prior to the surrender or annuitization. The quarterly charge for the earnings multiplier benefit rider is 0.075% (0.30% annually). For a description of the rider, see "Earnings Multiplier Benefit Rider." OPTIONAL RIDER CHARGES. Subject to state availability, you may purchase one of two optional benefit riders that you may elect at issue. So long as the rider is in effect, we will deduct a separate quarterly charge for each optional benefit rider through a pro-rata reduction of the contract value of the subaccounts in which you are invested. If there is insufficient contract value in the subaccount, we will deduct the charges from your Fixed Interest Allocations nearest their maturity date. We deduct each rider charge on each quarterly contract anniversary in arrears, meaning we deduct the first charge on the first quarterly anniversary following the rider date. For a description of the riders and the defined terms used in connection with the riders, see "The Annuity Contract -- Optional Riders." MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The charge for the MGIB rider is as follows:
------------- -------------------------------- ------------------------------- MGIB Rate As an Annual Charge As a Quarterly Charge ------------- -------------------------------- ------------------------------- 7% 0.75% of the MGIB Charge Base 0.1875% of the MGIB Charge Base ------------- -------------------------------- -------------------------------
MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The annual charge for the MGWB rider is 0.35% (0.0875% quarterly) of the contract value. The charge is deducted from the contract value on each quarterly contract anniversary date, in arrears. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate immediately prior to the surrender or annuitization. Please see the appendix that is applicable to you for the optional rider charges under your Contract. TRUST AND FUND EXPENSES Each portfolio deducts portfolio management fees and charges from the amounts you have invested in the portfolios. In addition, certain portfolios deduct a service fee, which is used to compensate service providers for administrative and contract holder services provided on behalf of the portfolios, and certain portfolios deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of shares of the applicable portfolio. See "Fees and Expenses -- Trust or Fund Expenses." - -------------------------------------------------------------------------------- THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- The Contract described in this prospectus is a deferred combination variable and fixed annuity contract. The Contract provides a means for you to invest in one or more of the available mutual fund portfolios of the Trusts and Funds through Separate Account B. It also provides a means for you to invest in a Fixed Interest Allocation through the Fixed Account. See Appendix C and the Fixed Account II prospectus for more information on the Fixed Interest Allocation and Fixed Account. CONTRACT DATE AND CONTRACT YEAR The date the Contract became effective is the contract date. Each 12-month period following the contract date is a contract year. CONTRACT OWNER You are the contract owner. You have the rights and options described in the Contract. One or more persons may own the Contract. If there are multiple owners named, the age of the oldest owner will determine the applicable death benefit if such death benefit is available for multiple owners. The death benefit becomes payable when you die. In the case of a sole contract owner who dies before the annuity start date, we will pay the beneficiary the death benefit then due. The sole contract owner's estate will be the beneficiary if no beneficiary has been designated or the beneficiary has predeceased the contract owner. In the case of a joint owner of the Contract dying before the annuity start date, we will designate the surviving contract owner as the beneficiary. This will override any previous beneficiary designation. If the contract owner is a trust and a beneficial owner of the trust has been designated, the beneficial owner will be treated as the contract owner for determining the death benefit. If a beneficial owner is changed or added after the contract date, we will treat this as a change of contract owner for determining the death benefit (likely a taxable event). If no beneficial owner of the trust has been designated, the availability of Enhanced Death Benefits will be based on the age of the annuitant at the time you purchase the Contract. CONTRACT OWNER CATEGORIES. There are four categories of contract owners covered by this prospectus. For ease of reference, they are called Yr-2001, May-2002, Yr-2003 and Yr-2004 contract owners. If you are a contract owner, the category of your Contract is indicated on your quarterly statements. If you are unsure which category applies to you, please call our Customer Service Center. The telephone number is (800) 366-0066. The following is a general description of the categories:
---------------- -------------------------------------------------------- YR-2001: Contracts under which the determination of benefits when there are allocations to Special Funds is based on the better of the original Yr-2001 benefit calculation and the Special Funds "floor" (as available in the state of issue at the time of purchase). ---------------- -------------------------------------------------------- MAY-2002: Contracts purchased on or after May 1, 2002, under which the determination of benefits when there are allocations to Special Funds is the same as the Special Funds "floor," but all withdrawals are pro-rata (as available in the state of issue at the time of purchase). ---------------- -------------------------------------------------------- YR-2003: Contracts purchased on or after February 4, 2003 which have the same death benefits and living benefits as May-2002 Contracts, but have a different calculation of the Minimum Guaranteed Income Benefit and higher charges for all three living benefit optional riders. ---------------- -------------------------------------------------------- YR-2004: Contracts purchased on or after February X, 2004 which offer the Quarterly Ratchet Death Benefit, do not offer the 7% Solution Death Benefit, do not offer the Minimum Guaranteed Accumulation Benefit and offer a Minimum Guaranteed Withdrawal Benefit with reset and step-up benefit options. ---------------- --------------------------------------------------------
A description of benefits and charges for Yr-2001, May-2002 and Yr-2003 contract owners is included in the appendices to this prospectus, to the extent they differ from those described in this prospectus for Yr-2004 contract owners. PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. JOINT OWNER. For non-qualified Contracts only, joint owners may be named in a written request before the Contract is in effect. Joint owners may independently exercise transfers and other transactions allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. All rights of a joint owner end at death of that owner if the other joint owner survives. The entire interest of the deceased joint owner in the Contract will pass to the surviving joint owner and the death benefit will be payable. Joint owners may only select the Standard Death Benefit option. The earnings multiplier benefit rider is not available when there are joint owners. Any addition or deletion of a joint owner is treated as a change of owner which may affect the amount of the death benefit. See "Change of Contract Owner or Beneficiary" below. If you have elected an Enhanced Death Benefit, and you add a joint owner, the Enhanced Death Benefit from the date of change will end. If the older joint owner is attained age 85 or under, the Standard Death Benefit will apply. If the older joint owner is attained age 86 or over on the date of the ownership change, the death benefit will be the cash surrender value. The mortality and expense risk charge going forward will reflect the change in death benefit. If you elected the earnings multiplier benefit rider, it will terminate if you add a joint owner. Note that returning a Contract to single owner status will not restore any Enhanced Death Benefit or the earnings multiplier benefit. Unless otherwise specified, the term "age" when used for joint owners shall mean the age of the oldest owner. ANNUITY START DATE The annuity start date is the date you start receiving annuity payments under your Contract. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the income phase. The accumulation phase is the period between the contract date and the annuity start date. The income phase begins when you start receiving regular annuity payments from your Contract on the annuity start date. ANNUITANT The annuitant is the person designated by you to be the measuring life in determining annuity payments. You are the annuitant unless you name another annuitant in the application. The annuitant's age determines when the income phase must begin and the amount of the annuity payments to be paid. The contract owner will receive the annuity benefits of the Contract if the annuitant is living on the annuity start date. You may not change the annuitant after the Contract is in effect. If the contract owner is an individual, and the annuitant dies before the annuity start date and you have named a contingent annuitant, the contingent annuitant becomes the annuitant. If the annuitant dies before the annuity start date and there is no contingent annuitant, the contract owner will become the annuitant. The contract owner may designate a new annuitant within 60 days of the death of the annuitant. If the annuitant was the sole contract owner and there is no beneficiary designation, the annuitant's estate will be the beneficiary. If the contract owner is not an individual, and the annuitant dies before the annuity start date, we will pay the designated beneficiary the death benefit then due. If a beneficiary has not been designated, or if there is no designated beneficiary living, the contract owner will be the beneficiary. Regardless of whether a death benefit is payable, if the annuitant dies and any contract owner is not an individual, distribution rules under federal tax law will apply. You should consult your tax adviser for more information if you are not an individual. BENEFICIARY The beneficiary is named by you in a written request. The beneficiary is the person who receives any death benefit proceeds. We pay death benefits to the primary beneficiary (unless there are joint owners, in which case death proceeds are payable to the surviving owner(s)). If the beneficiary dies before the annuitant or the contract owner, we pay the death benefit proceeds to the contingent beneficiary, if any. If there is no surviving beneficiary, we pay the death benefit proceeds to the contract owner's estate. One or more persons may be a beneficiary or contingent beneficiary. In the case of more than one beneficiary, we will assume any death benefit proceeds are to be paid in equal shares to the surviving beneficiaries. CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's lifetime, you may transfer ownership of a non-qualified Contract. A change in ownership may affect the amount of the death benefit, the guaranteed minimum death benefit and/or the death benefit option applied to the Contract, the amount of the earnings multiplier benefit, if applicable, and the continuation of any other optional rider that you have elected. The new owner's age, as of the date of the change, will be used as the basis for determining the applicable benefits and charges. The new owner's death will determine when a death benefit is payable. If you have elected the Standard Death Benefit option, the minimum guaranteed death benefit will continue if the new owner is age 85 or under on the date of the ownership change. For the Enhanced Death Benefit options, if the new owner is age 79 or under on the date that ownership changes, the minimum guaranteed death benefit will continue. If the new owner is age 80 to 85, the Enhanced Death Benefit will end, and the death benefit will become the Standard Death Benefit. For all death benefit options, 1) if the new owner's attained age is 86 or over on the date of the ownership change, or 2) if the new owner is not an individual (other than a trust for the benefit of the owner or annuitant), the death benefit will be the cash surrender value. The mortality and expense risk charge going forward will reflect the change in death benefit. Please note that once a death benefit has been changed due to a change in owner, a subsequent change to a younger owner will not restore any Enhanced Death Benefits. If you have elected the earnings multiplier benefit rider, and the new owner is under age 76, the rider will continue. The benefit will be adjusted to reflect the attained age of the new owner as the issue age. We will use the Maximum Base and Benefit Base percentages in effect on the original rider date to calculate the benefit. If the new owner is age 76 or over, the rider will terminate. If you have not elected the earnings multiplier benefit rider, the new owner may not add the rider upon the change of ownership. If you have elected another optional rider, the rider will terminate upon a change of ownership. A change of owner likely has tax consequences. See "Federal Tax Considerations" in this prospectus. You have the right to change beneficiaries during the annuitant's lifetime unless you have designated an irrevocable beneficiary. If you have designated an irrevocable beneficiary, you and the irrevocable beneficiary may have to act together to exercise some of the rights and options under the Contract. You may also restrict a beneficiary's right to elect an annuity option or receive a lump sum payment. If so, such rights or options will not be available to the beneficiary. All requests for changes must be in writing and submitted to our Customer Service Center. The change will be effective as of the day you sign the request. The change will not affect any payment made or action taken by us before recording the change. PURCHASE AND AVAILABILITY OF THE CONTRACT We will issue a Contract only if both the annuitant and the contract owner are age 85 or younger. The initial premium payment must be $10,000 or more ($1,500 for qualified Contracts). You may make additional payments of $500 or more ($50 for qualified Contracts) at any time after the free look period, before the contract anniversary following your 86th birthday and during the accumulation phase. Under certain circumstances, we may waive the minimum premium payment requirement. We may also change the minimum initial or additional premium requirements for certain group or sponsored arrangements. An initial or additional premium payment that would cause the contract value of all annuities that you maintain with us to exceed $1,000,000 requires our prior approval. The Contract may not be available to all ages through all broker dealers. The Contract is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes. The tax-deferred feature is more attractive to people in high federal and state tax brackets. YOU SHOULD NOT BUY THIS CONTRACT: (I) IF YOU ARE LOOKING FOR A SHORT-TERM INVESTMENT; (II) IF YOU CANNOT RISK GETTING BACK LESS MONEY THAN YOU PUT IN; OR (III) IF YOUR ASSETS ARE IN A PLAN WHICH PROVIDES FOR TAX-DEFERRAL AND YOU SEE NO OTHER REASON TO PURCHASE THIS CONTRACT. IRAs and other qualified plans already have the tax-deferral feature found in this Contract. For an additional cost, the Contract provides other features and benefits including death benefits and the ability to receive a lifetime income. You should not purchase a qualified Contract unless you want these other features and benefits, taking into account their cost. See "Fees and Expenses" in this prospectus. IF YOU ARE CONSIDERING AN ENHANCED DEATH BENEFIT OPTION AND/OR THE EARNINGS MULTIPLIER BENEFIT RIDER AND YOUR CONTRACT WILL BE AN IRA, SEE "TAXATION OF QUALIFIED CONTRACTS -- INDIVIDUAL RETIREMENT ANNUITIES" AND "TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT" IN THIS PROSPECTUS. We and our affiliates offer other variable products that may offer some of the same investment portfolios. These products have different benefits and charges, and may or may not better match your needs. If you are interested in learning more about these other products, contact our Customer Service Center or your registered representative. CREDITING OF PREMIUM PAYMENTS We will process your initial premium within 2 business days after receipt, if the application and all information necessary for processing the Contract are complete. We will process subsequent premium payments within 1 business day if we receive all information necessary. In certain states we also accept initial and additional premium payments by wire order. Wire transmittals must be accompanied by sufficient electronically transmitted data. We may retain your initial premium payment for up to 5 business days while attempting to complete an incomplete application. If the application cannot be completed within this period, we will inform you of the reasons for the delay. We will also return the premium payment immediately unless you direct us to hold the premium payment until the application is completed. We will allocate your initial payment according to the instructions you specified. If a subaccount is not available or requested in error, we will make inquiry about a replacement subaccount. If we are unable to reach you or your representative, we will consider the application incomplete. For initial premium payments designated for a subaccount of Separate Account B, we will credit the payment at the accumulation unit value next determined after we receive your premium payment and the completed application. Once the completed application is received, we will allocate the payment to the subaccounts and/or Fixed Interest Allocation of Separate Account B specified by you within 2 business days. We will ask about any missing information related to subsequent payments. We will allocate the subsequent payment(s) pro-rata according to the current variable subaccount allocation unless you specify otherwise. Any fixed allocation(s) will not be considered in the pro-rata calculations. If a subaccount is no longer available or requested in error, we will allocate the subsequent payment(s) proportionally among the other subaccount(s) in your current allocation or your allocation instructions. For any subsequent premium payments, we will credit the payment designated for a subaccount of Separate Account B at the accumulation unit value next determined after receipt of your premium payment and instructions. Once we allocate your premium payment to the subaccounts selected by you, we convert the premium payment into accumulation units. We divide the amount of the premium payment allocated to a particular subaccount by the value of an accumulation unit for the subaccount to determine the number of accumulation units of the subaccount to be held in Separate Account B with respect to your Contract. The net investment results of each subaccount vary with its investment performance. If your premium payment was transmitted by wire order from your broker/dealer, we will follow one of the following two procedures after we receive and accept the wire order and investment instructions. The procedure we follow depends on state availability and the procedures of your broker/dealer. 1) If either your state or broker/dealer do not permit us to issue a Contract without an application, we reserve the right to rescind the Contract if we do not receive and accept a properly completed application or enrollment form within 5 days of the premium payment. If we do not receive the application or form within 5 days of the premium payment, we will refund the contract value plus any charges we deducted, and the Contract will be voided. Some states require that we return the premium paid. 2) If your state and broker/dealer allow us to issue a Contract without an application, we will issue and mail the Contract to you or your representative, together with an Application Acknowledgement Statement for your execution. Until our Customer Service Center receives the executed Application Acknowledgement Statement, neither you nor the broker/dealer may execute any financial transactions on your Contract unless they are requested in writing by you. We may require additional information before complying with your request (e.g., signature guarantee). In some states, we may require that an initial premium designated for a subaccount of Separate Account B or the Fixed Account be allocated to a subaccount specially designated by the Company (currently, the Wells Fargo VT Money Market subaccount) during the free look period. After the free look period, we will convert your contract value (your initial premium plus any earnings less any expenses) into accumulation units of the subaccounts you previously selected. The accumulation units will be allocated based on the accumulation unit value next computed for each subaccount. Initial premiums designated for Fixed Interest Allocations will be allocated to a Fixed Interest Allocation with the guaranteed interest period you have chosen; however, in the future we may allocate the premiums to the specially designated subaccount during the free look period. We may also refuse to accept certain forms of premium payments or loan repayments, if applicable, (traveler's checks, for example) or restrict the amount of certain forms of premium payments or loan repayments (money orders totaling more than $5,000, for example). In addition, we may require information as to why a particular form of payment was used (third party checks, for example) and the source of the funds of such payment in order to determine whether or not we will accept it. Use of an unacceptable form of payment may result in us returning your premium payment and not issuing the contract. ADMINISTRATIVE PROCEDURES We may accept a request for Contract service in writing, by telephone, or other approved electronic means, subject to our administrative procedures, which vary depending on the type of service requested and may include proper completion of certain forms, providing appropriate identifying information, and/or other administrative requirements. We will process your request at the contract value next determined only after you have met all administrative requirements. CONTRACT VALUE We determine your contract value on a daily basis beginning on the contract date. Your contract value is the sum of (i) the contract value in the Fixed Interest Allocations, and (ii) the contract value in each subaccount in which you are invested. CONTRACT VALUE IN FIXED INTEREST ALLOCATIONS. The contract value in your Fixed Interest Allocation is the sum of premium payments allocated to the Fixed Interest Allocation under the Contract, plus contract value transferred to the Fixed Interest Allocation, plus credited interest, minus any transfers and withdrawals from the Fixed Interest Allocation (including any Market Value Adjustment applied to such withdrawal), contract fees (including, in some cases, fees for optional benefit riders) and premium taxes. CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the contract value in the subaccount in which you are invested is equal to the initial premium paid and designated to be allocated to the subaccount. On the contract date, we allocate your contract value to each subaccount and/or a Fixed Interest Allocation specified by you, unless the Contract is issued in a state that requires the return of premium payments during the free look period, in which case, the portion of your initial premium not allocated to a Fixed Interest Allocation may be allocated to a subaccount specially designated by the Company during the free look period for this purpose (currently, the Wells Fargo VT Money Market subaccount). On each business day after the contract date, we calculate the amount of contract value in each subaccount as follows: 1) We take the contract value in the subaccount at the end of the preceding business day. 2) We multiply (1) by the subaccount's Net Rate of Return since the preceding business day. 3) We add (1) and (2). 4) We add to (3) any additional premium payments, and then add or subtract any transfers to or from that subaccount. 5) We subtract from (4) any withdrawals and any related charges, and then subtract any contract fees and premium taxes. CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value will fluctuate daily based on the investment results of the subaccounts in which you are invested and interest credited to Fixed Interest Allocations and any Market Value Adjustment. See Appendix C and the ING USA Fixed Account II prospectus for a description of the calculation of cash surrender value under any Fixed Interest Allocation. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your contract value, adjust for any Market Value Adjustment, and then we deduct any surrender charge, any charge for premium taxes, the annual contract administrative fee (unless waived), any optional benefit rider charge, and any other charges incurred but not yet deducted. SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE. You may surrender the Contract at any time while the annuitant is living and before the annuity start date. A surrender is effective on the date we receive your written request and the Contract at our Customer Service Center. After we receive all paperwork required for us to process your surrender, we will determine and pay the cash surrender value at the price next determined. Once paid, all benefits under the Contract will terminate. For administrative purposes, we will transfer your money to a specially designated subaccount (currently the Wells Fargo VT Money Market subaccount) prior to processing the surrender. This transfer will have no effect on your cash surrender value. You may receive the cash surrender value in a single sum payment or apply it under one or more annuity options. We will usually pay the cash surrender value within 7 days. Consult your tax adviser regarding the tax consequences associated with surrendering your Contract. A surrender made before you reach age 59 1/2 may result in a 10% tax penalty. See "Federal Tax Considerations" for more details. ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHARGES We may make additional subaccounts available to you under the Contract. These subaccounts will invest in investment portfolios we find suitable for your Contract. We may also withdraw or substitute investment portfolios, subject to the conditions in your Contract and compliance with regulatory requirements. We may amend the Contract to conform to applicable laws or governmental regulations. If we feel that investment in any of the investment portfolios has become inappropriate to the purposes of the Contract, we may, with approval of the SEC (and any other regulatory agency, if required) substitute another portfolio for existing and future investments. If you elected the dollar cost averaging, systematic withdrawals or automatic rebalancing programs, or if you have other outstanding instructions and we substitute or otherwise eliminate a portfolio subject to those instructions, we will execute your instructions using the substituted or proposed replacement portfolio, unless you request otherwise. The substitute or proposed replacement portfolio may have higher fees and charges than any portfolio it replaces. We will provide you with written notice before we make these changes. We reserve the right to: (i) deregister Separate Account B under the 1940 Act; (ii) operate Separate Account B as a management company under the 1940 Act if it is operating as a unit investment trust; (iii) operate Separate Account B as a unit investment trust under the 1940 Act if it is operating as a managed separate account; (iv) restrict or eliminate any voting rights as to Separate Account B; and (v) combine Separate Account B with other accounts. We will provide you with written notice before we make any of these changes. THE FIXED ACCOUNT The Fixed Account is a segregated asset account which contains the assets that support a contract owner's Fixed Interest Allocations. See Appendix C and the Fixed Account II prospectus for more information. OPTIONAL RIDERS Subject to state availability, you may elect one of the two optional benefit riders discussed below. YOU MAY ADD ONLY ONE OF THESE TWO RIDERS TO YOUR CONTRACT. EACH RIDER HAS A SEPARATE CHARGE. Once elected, the riders generally may not be cancelled. You may not remove the rider and charges will be assessed regardless of the performance of your Contract. Please see "Charges and Fees -- Optional Rider Charges" for information on rider charges. The following describes the optional riders for Contracts in the Yr-2004 category. A description of the optional rider benefits for all other contract owners is included in the appendices to this prospectus, to the extent they differ from those described in the prospectus for Yr-2004 contract owners. Please retain this prospectus and the appendix that is applicable to you so you will have it for future reference. THE OPTIONAL RIDERS MAY NOT BE AVAILABLE FOR ALL INVESTORS. YOU SHOULD ANALYZE EACH RIDER THOROUGHLY AND UNDERSTAND IT COMPLETELY BEFORE YOU SELECT ONE. THE OPTIONAL RIDERS DO NOT GUARANTEE ANY RETURN OF PRINCIPAL OR PREMIUM PAYMENTS AND DO NOT GUARANTEE PERFORMANCE OF ANY SPECIFIC INVESTMENT PORTFOLIO UNDER THE CONTRACT. YOU SHOULD CONSULT A QUALIFIED FINANCIAL ADVISER IN EVALUATING THE RIDERS. THE OPTIONAL RIDERS MAY NOT BE APPROVED IN ALL STATES. CHECK WITH OUR CUSTOMER SERVICE CENTER FOR AVAILABILITY IN YOUR STATE. THE TELEPHONE NUMBER IS (800) 366-0066. RIDER DATE. The rider date is the date an optional benefit rider becomes effective. The rider date is also the contract date if you purchase the rider when the Contract is issued. NO CANCELLATION. Once you purchase a rider, you may not cancel it unless you cancel the Contract during the Contract's free look period, surrender, annuitize or otherwise terminate the Contract. These events automatically cancel any rider. Once the Contract continues beyond the free look period, you may not cancel the rider. The Company may, at its discretion, cancel and/or replace a rider at your request in order to renew or reset a rider. TERMINATION. The optional riders are "living benefits," which means the guaranteed benefits offered by the riders are intended to be available to you while you are living and while your Contract is in the accumulation phase. The optional riders automatically terminate if you: o annuitize, surrender or otherwise terminate your Contract during the accumulation phase; or o die during the accumulation phase (first owner to die if there are multiple contract owners, or at death of annuitant if contract owner is not a natural person), unless your spouse beneficiary elects to continue the Contract. The optional riders will also terminate if there is a change in contract ownership (other than a spousal beneficiary continuation on your death). Other circumstances which may cause a particular optional rider to terminate automatically are discussed below with each rider. MINIMUM GUARANTEED INCOME BENEFIT RIDER (MGIB). The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to Special Funds or Excluded Funds, the MGIB Rate, the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the MGIB. The following investment options are designated as Special Funds for purposes of calculating the MGIB: Wells Fargo VT Money Market Fund, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the Fixed Account, the Fixed Interest Division and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The MGIB Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rate is an annual effective rate. For a discussion of the charges we deduct under the MGIB rider, see "Charges and Fees -- Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Date is the greatest of: 1) your annuity income based on your contract value adjusted for any Market Value Adjustment (see Appendix C and the Fixed Account II prospectus) on the MGIB Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; 2) your annuity income based on your contract value adjusted for any Market Value Adjustment (see Appendix C and the Fixed Account II prospectus) on the MGIB Date applied to the then-current income factors in effect for the annuity option you selected; or 3) the MGIB annuity income based on your MGIB Base on the MGIB Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust the MGIB Base for any premium tax recovery and Market Value Adjustment (see Appendix C and the Fixed Account II prospectus) that would otherwise apply at annuitization. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. The MGIB Benefit Base is only a calculation used to determine the MGIB annuity income. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Benefit Base or Maximum MGIB Base. The MGIB Benefit Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value) and credits, and subsequently allocated eligible premiums and any credits we add, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Date. We require a 10-year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30-day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Date. DETERMINING THE MGIB CHARGE BASE: The MGIB Charge Base is the greater of the MGIB Rollup Base and the MGIB Ratchet Base. (i) The MGIB Rollup Base is equal to the lesser of the Maximum MGIB Base and the sum of (a), (b) and (c) where: (a) is the MGIB Rollup Base for Covered Funds; (b) is the MGIB Rollup Base for Special Funds; (c) is the MGIB Rollup Base for Excluded Funds; and (ii) The MGIB Ratchet Base is equal to the sum of (a) and (b) where: (a) is the MGIB Ratchet Base for Covered and Special Funds; and (b) is the MGIB Ratchet Base for Excluded Funds. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Date, we calculate your MGIB annuity income as follows: 1) WE FIRST DETERMINE YOUR MGIB BENEFIT BASE: The MGIB Benefit Base is equal to the greater of the MGIB Rollup Benefit Base and the MGIB Ratchet Benefit Base. (i) The MGIB Rollup Benefit Base is equal to the lesser of the Maximum MGIB Base and the sum of (a), (b) and (c) where: (a) is the MGIB Rollup Base for Covered Funds; (b) is the MGIB Rollup Base for Special Funds; (c) is the contract value allocated to Excluded Funds; and (ii) The MGIB Ratchet Benefit Base is equal to the sum of (a) and (b) where: (a) is the MGIB Ratchet Base for Covered and Special Funds; and (b) is the contract value allocated to Excluded Funds. The Maximum MGIB Base is 300% of eligible premiums and credits adjusted pro-rata for withdrawals. The Maximum MGIB Base is not allocated by Fund category and credits. A) CALCULATION OF MGIB ROLLUP BENEFIT BASE THE MGIB ROLLUP BASE ALLOCATED TO COVERED FUNDS equals the eligible premiums and credits allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rollup Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Benefit Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB ROLLUP BASE ALLOCATED TO SPECIAL FUNDS equals the eligible premiums and credits allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. THERE IS NO ACCUMULATION OF MGIB ROLLUP BASE ALLOCATED TO SPECIAL FUNDS. THE MGIB ROLLUP BASE ALLOCATED TO EXCLUDED FUNDS equals the eligible premiums and credits allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Benefit Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB ROLLUP BASE ALLOCATED TO EXCLUDED FUNDS IS USED ONLY FOR TRANSFER ADJUSTMENTS AND RIDER CHARGES. IT IS NOT USED TO DETERMINE BENEFITS. Eligible premiums and credits are those added more than 5 years before the earliest MGIB Benefit Date. Premiums paid and credits after that are excluded from the MGIB Rollup Base. The MGIB Rollup Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rollup Rate is an annual effective rate. Withdrawals reduce the MGIB Rollup Base on a pro-rata basis. The percentage reduction in the MGIB Rollup Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. For example, the value of the MGIB Rollup Base in Covered Funds after a withdrawal from one or more Covered Funds equals the value of the MGIB Rollup Base in Covered Funds before the withdrawal times the contract value in Covered Funds after the withdrawal divided by the contract value in Covered Funds before the withdrawal. Net transfers from Covered Funds will reduce the MGIB Rollup Base allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Special or Excluded Funds, as applicable, will equal the reduction in the MGIB Rollup Base allocated to Covered Funds. Net transfers from Special Funds will reduce the MGIB Rollup Base allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Covered or Excluded Funds, as applicable, will equal the reduction in the MGIB Rollup Base allocated to Special Funds. Net transfers from Excluded Funds will reduce the MGIB Rollup Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Rollup Base allocated to Covered or Special Funds, as applicable, will equal the lesser of the net contract value transferred and the change in the MGIB Rollup Base allocated to Excluded Funds. B) CALCULATION OF MGIB RATCHET BENEFIT BASE The MGIB RATCHET BASE FOR COVERED FUNDS AND SPECIAL FUNDS equals: o on the rider date, eligible premiums plus credits, or the contract value, if applicable, allocated to Covered Funds and Special Funds; o on each "quarterly anniversary date" prior to attainment of age 90, the MGIB Ratchet Base for Covered Funds and Special Funds is set equal to the greater of : 1) the current contract value allocated to Covered Funds and Special Funds (after any deductions occurring on that date); and 2) the MGIB Ratchet Base for Covered Funds and Special Funds from the most recent prior quarterly anniversary date, adjusted for any new eligible premiums and withdrawals attributable to Covered Funds or Special Funds, and transfers. o at other times, the MGIB Ratchet Base for Covered Funds and Special Funds is the MGIB Ratchet Base from the prior quarterly anniversary date, adjusted for subsequent eligible premiums and withdrawals attributable to Covered Funds or Special Funds, and transfers. The MGIB RATCHET BASE FOR EXCLUDED FUNDS is calculated the same as for Covered Funds and Special Funds, but for premiums, credits, allocations, withdrawals or transfers attributable to Excluded Funds. Effect of Transfers on MGIB Ratchet Base: Net transfers from Covered or Special Funds to Excluded Funds will reduce the MGIB Ratchet Base allocated to Covered and Special Funds on a pro-rata basis. The resulting increase in the MGIB Ratchet Base allocated to Excluded Funds will equal the reduction in the MGIB Ratchet Base allocated to Covered and Special Funds. Net transfers from Excluded Funds to Covered or Special Funds will reduce the MGIB Ratchet Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Ratchet Base allocated to Covered and Special Funds will equal the lesser of the net contract value transferred and the change in the MGIB Ratchet Base allocated to Excluded Funds. A "quarterly anniversary date" is the date three months from the contract date that falls on the same date in the month as the contract date. For example, if the contract date is February 12, the quarterly anniversary date is May 12. If there is no corresponding date in the month, the quarterly anniversary date will be the last date of such month. If the quarterly anniversary date falls on a weekend or holiday, we will use the value as of the subsequent business day. 2) THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT, SURRENDER CHARGE AND PREMIUM TAXES) BY THE INCOME FACTOR, AND THEN DIVIDE BY $1,000. MGIB INCOME OPTIONS The following are the MGIB Income Options available under the MGIB Rider: a) Income for Life (Single Life or Joint with 100% Survivor) and 10-20 year certain; b) Income for a 20-30 year period certain; c) Any other income plan offered by the Company in conjunction with the MGIB rider on the MGIB Benefit Date. You may elect to have payments under MGIB Income Options (a) and (b) increase annually at 1%, 2% or 3%. Once during the life of the Contract, you have the option to elect to apply up to 50% of the MGIB Benefit Base to one of the MGIB Income Options available under the Rider. This option may only be exercised on a contract anniversary at or after the end of the waiting period. The portion of the MGIB Benefit Base so applied will be used to determine the MGIB income, as is otherwise described in the prospectus. The Contract Value will be reduced on a pro-rata basis. Any subsequent exercise of your right to receive payments under the MGIB rider must be for 100% of the remaining value. The amount applied to the partial annuitization will be treated as a withdrawal for purposes of adjusting contract and rider values. PLEASE NOTE THAT IF YOU ELECT PARTIAL ANNUITIZATION, INCOME PAYMENTS RECEIVED WILL BE TAXED AS WITHDRAWALS. PLEASE CONSULT YOUR TAX ADVISER BEFORE MAKING THIS ELECTION, AS THE TAXATION OF PARTIAL ANNUITIZATION IS UNCERTAIN. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten-year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten year waiting period before you can annuitize under the MGIB rider. This could reduce the MGIB. THE MGIB DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Date is the contract anniversary on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. If you added the MGIB rider at any other time, your MGIB Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuitize under the MGIB rider. NO CHANGE OF ANNUITANT. Once you purchase the MGIB rider, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. NOTIFICATION. On or about 30 days prior to the MGIB Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise it. We will determine the actual amount of the MGIB annuity benefit as of the MGIB Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN A MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER (MGWB). The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero, you will receive periodic payments. The amount of the periodic payments is based on the amount in the MGWB Withdrawal Account The guarantee provides that, subject to the conditions described below, the amount you will receive in periodic payments is equal to your Eligible Payment Amount adjusted for any prior withdrawals. Your Eligible Payment Amount depends on when you purchase the MGWB rider and equals: 1) if you purchased the MGWB rider on the contract date: your premium payments received during the first two contract years 2) if you purchased the MGWB rider after the contract date: your contract value on the Rider Date, including any premiums received that day, and any subsequent premium payments received during the two-year period commencing on the Rider Date. To maintain the guarantee, withdrawals in any contract year may not exceed 7% of your Eligible Payment Amount adjusted, as defined below. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. The MGWB Withdrawal Account is equal to the Eligible Payment Amount adjusted for any withdrawals and transfers between Covered and Excluded Funds. The MGWB Withdrawal Account is tracked separately for Covered and Excluded Funds. The MGWB Withdrawal Account equals the sum of (a) the MGWB Withdrawal Account allocated to Covered Funds, and (b) the lesser of (i) the MGWB Withdrawal Account allocated to Excluded Funds and (ii) the contract value in Excluded Funds. Thus, investing in the Excluded Funds may limit the MGWB Withdrawal Account. No investment options are currently designated as Excluded Funds for the Minimum Guaranteed Withdrawal Benefit. The Maximum Annual Withdrawal Amount (or "MAW") is equal to 7% of the Eligible Payment Amount. Withdrawals from Covered Funds of up to the MAW will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal. Any withdrawals from Covered Funds greater than the MAW will cause a reduction in the MGWB Withdrawal Account allocated to Covered Funds by the proportion that the excess withdrawal bears to the remaining contract value in Covered Funds after the withdrawal of the MAW. All withdrawals from Excluded Funds will reduce the value of the MGWB Withdrawal Account allocated to Excluded Funds on a pro-rata basis. If a single withdrawal involves both Covered and Excluded Funds and exceeds 7%, the withdrawal will be treated as taken first from Covered Funds. Any withdrawals greater than the MAW will also cause a reduction in the Eligible Payment Amount by the proportion that the excess portion of the withdrawal bears to the contract value remaining after withdrawal of the MAW at the time of the withdrawal. Once your contract value is zero, any periodic payments paid under the MGWB rider also reduce the MGWB Withdrawal Account by the dollar amount of the payments. If a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Covered Funds to Excluded Funds will reduce the MGWB Withdrawal Account allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Excluded Funds equals the reduction in the MGWB Withdrawal Account for Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the MGWB Withdrawal Account allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Covered Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Excluded Funds and the net contract value transferred. YOU SHOULD NOT MAKE ANY WITHDRAWALS IF YOU WISH TO RETAIN THE OPTION TO ELECT THE STEP-UP BENEFIT (SEE BELOW). The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." However, making any withdrawals in any year greater than the MAW will reduce the Eligible Payment Amount and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider will remain in force and you may continue to make withdrawals each year so long as: 1) your contract value is greater than zero; 2) your MGWB Withdrawal Account is greater than zero; 3) you have not reached your latest allowable annuity start date; 4) you have not elected to annuitize your Contract; and 5) you have not died (unless your spouse has elected to continue the Contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero, your Contract is given Automatic Periodic Benefit Status, if: 1) your MGWB Withdrawal Account is greater than zero; 2) you have not reached your latest allowable annuity start date; 3) you have not elected to annuitize your Contract; and 4) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, we will pay you the annual MGWB periodic payments, beginning on the next contract anniversary until the earliest of (i) your Contract's latest annuity start date, (ii) the death of the owner; or (iii) your MGWB Withdrawal Account is exhausted. These payments are equal to the lesser of the remaining MGWB Withdrawal Account or the MAW. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status, we will not accept any additional premium payments in your Contract, and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of (i) payment of all MGWB periodic payments, (ii) payment of the Commuted Value (defined below) or (iii) the owner's death. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then-remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury STRIPS as quoted by a national quoting service for period(s) applicable to the remaining payments. Once we pay you the last MGWB periodic payment or the Commuted Value, your Contract and the MGWB rider terminate. RESET OPTION. Beginning on the fifth contract anniversary following the Rider Date, if the contract value is greater than the MGWB Withdrawal Account, you may choose to reset the MGWB Rider. The effect will be to terminate the existing MGWB Rider and add a new MGWB Rider ("New Rider"). The MGWB Withdrawal Account under the New Rider will equal the contract value on the date the New Rider is effective. The charge for the MGWB under the New Rider and any right to reset again will be based on the terms of the New Rider when it is issued. We reserve the right to limit the reset election to contact anniversaries only. STEP-UP BENEFIT. If the Rider Date is the same as the Contract Date, beginning on the fifth contract anniversary following the Rider Date, if you have not made any previous withdrawals, you may elect to increase the MGWB Withdrawal Account, the adjusted Eligible Payment Amount and the MAW by a factor of 20%. This option is available whether or not the contract value is greater than the MGWB Withdrawal Account. If you elect the Step-Up Benefit: 1) we reserve the right to increase the charge for the MGWB Rider; 2) you must wait at least five years from the Step-Up date to elect the Reset Option. The Step-Up Benefit may be elected only one time under this rider. DEATH OF OWNER. BEFORE AUTOMATIC PERIODIC BENEFIT STATUS. The MGWB rider terminates on the first owner's date of death (death of annuitant, if there is a non-natural owner), but the death benefit is payable. However, if the beneficiary is the owner's spouse, the spouse elects to continue the Contract, and the contract value steps up to the minimum guaranteed death benefit, the MGWB Withdrawal Account and MAW are also reset. The MGWB charge will continue at the existing rate. Reset upon spousal continuation does not affect any then existing reset option. DURING AUTOMATIC PERIODIC BENEFIT STATUS. The death benefit payable during Automatic Periodic Benefit Status is your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. PURCHASE. To purchase the MGWB rider, you must be age 80 or younger on the Rider Date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. If the rider is not yet available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. For a discussion of the charges we deduct under the MGWB rider, see "Charges and Fees -- Optional Rider Charges." Each payment you receive under the MGWB rider will be taxed as a withdrawal and may be subject to a penalty tax. See "Withdrawals" and "Federal Tax Considerations" for more information. OTHER CONTRACTS We offer other variable annuity contracts that also invest in the same portfolios of the Trusts. These contracts have different charges that could affect their performance, and may offer different benefits more suitable to your needs. To obtain more information about these other contracts, contact our Customer Service Center or your registered representative. - -------------------------------------------------------------------------------- WITHDRAWALS - -------------------------------------------------------------------------------- Except under certain qualified Contracts, you may withdraw all or part of your money any time during the accumulation phase and before the death of the contract owner. If you request a withdrawal for more than 90% of the cash surrender value, and the remaining cash surrender value after the withdrawal is less than $2,500, we will treat it as a request to surrender the Contract. If any single withdrawal or the sum of withdrawals exceeds the Free Withdrawal Amount, you will incur a surrender charge. The Free Withdrawal Amount is the greater of (i) any earnings less previous withdrawals, and (ii) 10% of premium payments paid within 4 years prior to the date of the withdrawal and not previously withdrawn, less any withdrawals taken in the same contract year. You need to submit to us a written request specifying the Fixed Interest Allocations or subaccounts from which to withdraw amounts, otherwise we will make the withdrawal on a pro-rata basis from all of the subaccounts in which you are invested. If there is not enough contract value in the subaccounts, we will deduct the balance of the withdrawal from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until we have honored your request. We will apply a Market Value Adjustment to any withdrawal from your Fixed Interest Allocation taken more than 30 days before its maturity date. Definitive guidance on the proper federal tax treatment of the Market Value Adjustment has not been issued. You may want to discuss the potential tax consequences of a Market Value Adjustment with your tax adviser. We will determine the contract value as of the close of business on the day we receive your withdrawal request at our Customer Service Center. The contract value may be more or less than the premium payments made. If the aggregate percentage cap on allocations to the Restricted Funds has been exceeded, any subsequent withdrawals must be taken so that the percentage of contract value in the Restricted Funds following the withdrawal would not be greater than the percentage of contract value in the Restricted Funds prior to the withdrawal. If a requested withdrawal would cause the percentage cap to be exceeded, the amount of the withdrawal in excess of the cap would be taken pro-rata from all variable subaccounts. For administrative purposes, we will transfer your money to a specially designated subaccount (currently, the Wells Fargo VT Money Market subaccount) prior to processing the withdrawal. This transfer will not affect the withdrawal amount you receive. Please be aware that the benefit we pay under certain optional benefit riders will be reduced by any withdrawals you take while the optional benefit rider is in effect. See "Optional Riders." We offer the following three withdrawal options: REGULAR WITHDRAWALS After the free look period, you may make regular withdrawals. Each withdrawal must be a minimum of $100. We will apply a Market Value Adjustment to any regular withdrawal you take from a Fixed Interest Allocation more than 30 days before its maturity date. See Appendix C and the Fixed Account II prospectus for more information on the application of the Market Value Adjustment. SYSTEMATIC WITHDRAWALS You may choose to receive automatic systematic withdrawal payments (i) from the contract value in the subaccounts in which you are invested, or (ii) from the interest earned in your Fixed Interest Allocations. You may not elect the systematic withdrawal option if you are taking IRA withdrawals. Systematic withdrawals may be taken monthly, quarterly or annually. If you have contract value allocated to one or more Restricted Funds, and you elect to receive systematic withdrawals from the subaccounts in which you are invested, the systematic withdrawals must be taken pro-rata from all subaccounts in which contract value is invested. If you do not have contract value allocated to a Restricted Fund and choose systematic withdrawals on a non pro-rata basis, we will monitor the withdrawals annually. If you subsequently allocate contract value to one or more Restricted Funds, we will require you to take your systematic withdrawals on a pro-rata basis from all subaccounts in which contract value is invested. You decide when you would like systematic payments to start as long as it is at least 28 days after your contract date. You also select the date on which the systematic withdrawals will be made, but this date cannot be later than the 28th day of the month. If you have elected to receive systematic withdrawals but have not chosen a date, we will make the withdrawals on the same calendar day of each month as your contract date. If your contract date is after the 28th day of the month, your systematic withdrawal will be made on the 28th day of each month. Each systematic withdrawal amount must be a minimum of $100. The amount of your systematic withdrawal can either be (i) a fixed dollar amount or (ii) an amount based on a percentage of the premiums not previously withdrawn from the subaccounts in which you are invested. Both forms of systematic withdrawals are subject to the following maximum, which is calculated on each withdrawal date: ------------------- -------------------------------------- MAXIMUM PERCENTAGE OF PREMIUMS FREQUENCY NOT PREVIOUSLY WITHDRAWN ------------------- -------------------------------------- Monthly 0.833% Quarterly 2.50% Annually 10.00% ------------------- -------------------------------------- If your systematic withdrawal is a fixed dollar amount and the amount to be withdrawn would exceed the applicable maximum percentage of your premium payments not previously withdrawn on any withdrawal date, we will automatically reduce the amount withdrawn so that it equals such percentage. Thus, your fixed dollar systematic withdrawals will never exceed the maximum percentage. If you want fixed dollar systematic withdrawals to exceed the maximum percentage and are willing to incur associated surrender charges, consider the Fixed Dollar Systematic Withdrawal Feature discussed below which you may add to your regular fixed dollar systematic withdrawal program. If your systematic withdrawal is based on a percentage of the premiums not previously withdrawn from the subaccounts in which you are invested and the amount to be withdrawn based on that percentage would be less than $100, we will automatically increase the amount to $100 as long as it does not exceed the maximum percentage. If the systematic withdrawal would exceed the maximum percentage, we will send the amount, and then automatically cancel your systematic withdrawal option. We limit systematic withdrawals from Fixed Interest Allocations to interest earnings during the prior month, quarter, or year, depending on the frequency you chose. Systematic withdrawals are not subject to a Market Value Adjustment, unless you have added the Fixed Dollar Systematic Withdrawal Feature discussed below and the payments exceed interest earnings. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. A Fixed Interest Allocation may not participate in both the systematic withdrawal option and the dollar cost averaging program at the same time. You may change the amount or percentage of your systematic withdrawal once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. If you submit a subsequent premium payment after you have applied for systematic withdrawals, we will not adjust future withdrawals under the systematic withdrawal program unless you specifically request that we do so. The systematic withdrawal option may commence in a contract year where a regular withdrawal has been taken but you may not change the amount or percentage of your withdrawals in any contract year during which you have previously taken a regular withdrawal. Subject to availability, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the beneficiary's lifetime ("stretch"). Stretch payments will be subject to the same limitations as systematic withdrawals, and non-qualified stretch payments will be reported on the same basis as other systematic withdrawals. FIXED DOLLAR SYSTEMATIC WITHDRAWAL FEATURE. You may add the Fixed Dollar Systematic Withdrawal Feature to your regular fixed dollar systematic withdrawal program. This feature allows you to receive a systematic withdrawal in a fixed dollar amount regardless of any surrender charges or Market Value Adjustments. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. You choose the amount of the fixed systematic withdrawals, which may total up to an annual maximum of 10% of your premium payments not previously withdrawn as determined on the day we receive your election of this feature. We will not recalculate the maximum limit when you make additional premium payments, unless you instruct us to do so. We will assess a surrender charge on the withdrawal date if the withdrawal exceeds the maximum limit as calculated on the withdrawal date. We will assess a Market Value Adjustment on the withdrawal date if the withdrawal from a Fixed Interest Allocation exceeds your interest earnings on the withdrawal date. We will apply the surrender charge and any Market Value Adjustment directly to your contract value (rather than to the withdrawal) so that the amount of each systematic withdrawal remains fixed. Flat dollar systematic withdrawals which are intended to satisfy the requirements of Section 72(q) or 72(t) of the Tax Code may exceed the maximum. Such withdrawals are subject to surrender charges and Market Value Adjustments when they exceed the applicable maximum percentage. IRA WITHDRAWALS If you have a non-Roth IRA Contract and will be at least age 70 1/2 during the current calendar year, you may elect to have distributions made to you to satisfy requirements imposed by federal tax law. IRA withdrawals provide payout of amounts required to be distributed by the Internal Revenue Service ("IRS") rules governing mandatory distributions under qualified plans. We will send you a notice before your distributions commence. You may elect to take IRA withdrawals at that time, or at a later date. You may not elect IRA withdrawals and participate in systematic withdrawals at the same time. If you do not elect to take IRA withdrawals, and distributions are required by federal tax law, distributions adequate to satisfy the requirements imposed by federal tax law may be made. Thus, if you are participating in systematic withdrawals, distributions under that option must be adequate to satisfy the mandatory distribution rules imposed by federal tax law. You may choose to receive IRA withdrawals on a monthly, quarterly or annual basis. You may elect payments to start as early as 28 days after the contract date. You select the day of the month when the withdrawals will be made, but it cannot be later than the 28th day of the month. If no date is selected, we will make the withdrawals on the same calendar day of the month as the contract date. If your contract date is after the 28th day of the month, your IRA withdrawal will be made on the 28th day of each month. You may request us to calculate the amount you are required to withdraw from your Contract each year based on the information you give us and various choices you make. For information regarding the calculation and choices you have, see the SAI. Or, we will accept your written instructions regarding the calculated amount required to be withdrawn from your Contract each year. The minimum dollar amount you can withdraw is $100. When we determine the required IRA withdrawal amount for a taxable year based on the frequency you select, if that amount is less than $100, we will pay $100. At any time where the IRA withdrawal amount is greater than the contract value, we will cancel the Contract and send you the amount of the cash surrender value. You may change the payment frequency of your IRA withdrawals once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. An IRA withdrawal from a Fixed Interest Allocation in excess of the amount allowed under systematic withdrawals will be subject to a Market Value Adjustment. CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED WITH TAKING WITHDRAWALS. You are responsible for determining that withdrawals comply with applicable law. A withdrawal made before the taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See "Federal Tax Considerations" for more details. - -------------------------------------------------------------------------------- TRANSFERS AMONG YOUR INVESTMENTS - -------------------------------------------------------------------------------- Between the end of the free look period and the annuity start date, you may transfer your contract value among the subaccounts in which you are invested and your Fixed Interest Allocations. We currently do not charge you for transfers made during a contract year, but reserve the right to charge for each transfer after the twelfth transfer in a contract year. WE ALSO RESERVE THE RIGHT TO LIMIT THE NUMBER OF TRANSFERS YOU MAY MAKE AND MAY OTHERWISE MODIFY OR TERMINATE TRANSFER PRIVILEGES IF REQUIRED BY OUR BUSINESS JUDGMENT OR IN ACCORDANCE WITH APPLICABLE LAW. We will apply a Market Value Adjustment to transfers from a Fixed Interest Allocation taken more than 30 days before its maturity date, unless the transfer is made under the dollar cost averaging program. Keep in mind that transfers between Covered Funds, Special Funds and Excluded Funds and other investment portfolios may negatively impact your death benefit or rider benefits. If you allocate contract value to an investment option that has been designated as a Restricted Fund, your ability to transfer contract value to the Restricted Fund may be limited. A transfer to the Restricted Funds will not be permitted to the extent that it would increase the contract value in the Restricted Fund to more than the applicable limits following the transfer. We do not limit transfers from Restricted Funds. If the result of multiple reallocations is to lower the percentage of total contract value in the Restricted Fund, the reallocation will be permitted even if the percentage of contract value in the Restricted Fund is greater than the limit. Please be aware that the benefit we pay under an optional benefit rider may be affected by certain transfers you make while the rider is in effect. Transfers, including those involving Special Funds or Excluded Funds, may also affect your optional rider base. See "The Annuity Contract -- Optional Riders." The minimum amount that you may transfer is $100 or, if less, your entire contract value held in a subaccount or a Fixed Interest Allocation. To make a transfer, you must notify our Customer Service Center and all other administrative requirements must be met. We will determine transfer values at the end of the business day on which we receive the transfer request at our Customer Service Center. If we receive your transfer request after 4 p.m. eastern time or the close of regular trading of the New York Stock Exchange, we will make the transfer on the next business day. Separate Account B and the Company will not be liable for following instructions communicated by telephone or other approved electronic means that we reasonably believe to be genuine. We may require personal identifying information to process a request for transfer made over the telephone, over the internet or other approved electronic means. TRANSFERS BY THIRD PARTIES As a convenience to you, we currently allow you to give third parties the right to make transfers on your behalf. However, when the third party makes transfers for many contract owners, the result can be simultaneous transfers involving large amounts of contract values. Such transfers can disrupt the orderly management of the investment portfolios available to the Contract, can result in higher costs to contract owners, and may not be compatible with the long term goals of contract owners. We require third parties making multiple, simultaneous or large volume transfers to execute a third party service agreement with us prior to executing such transfers. Regardless of whether such an agreement is in place, we may at any time exercise our business judgment and limit or discontinue accepting transfers made by a third party. Limits may be based on, among other criteria, the amount of the aggregate trade or the available investment options for which third parties may make trades on behalf of multiple contract owners. We may also limit or discontinue the right to communicate transfers by facsimile, telephone or email. For example, we currently require that orders received via facsimile to effect transactions in subaccounts that invest in ProFund portfolios be received at our Customer Service Center no later than 3 p.m. eastern time. We may establish additional procedures or change existing procedures at any time in the exercise of our business judgment. DOLLAR COST AVERAGING You may elect to participate in our dollar cost averaging program if you have at least $1,200 of contract value in (i) the Wells Fargo VT Money Market subaccount, or (ii) a Fixed Interest Allocation with either a 6-month or a 1-year guaranteed interest period. These subaccounts or Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other subaccounts selected by you. We also may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively for use with the dollar cost averaging program. The DCA Fixed Interest Allocations require a minimum premium payment of $1,200 directed into a DCA Fixed Interest Allocation. A Fixed Interest Allocation or DCA Fixed Interest Allocation may not participate in the dollar cost averaging program and in systematic withdrawals at the same time. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to other subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. Unless you have a DCA Fixed Interest Allocation, you elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. If your source account is the Wells Fargo VT Money Market subaccount or a 1-year Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 12. If your source account is a 6-month Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 6. You may change the transfer amount once each contract year. If you have a DCA Fixed Interest Allocation, there is no minimum or maximum transfer amount. We will transfer all your money allocated to that source account into the subaccount(s) in equal payments over the selected 6-month or 1-year period. The last payment will include earnings accrued over the course of the selected period. If you make an additional premium payment into a Fixed Interest Allocation subject to dollar cost averaging, the amount of your transfers under the dollar cost averaging program remains the same, unless you instruct us to increase the transfer amount. Transfers from a Fixed Interest Allocation or a DCA Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. However, if you terminate the dollar cost averaging program for a DCA Fixed Interest Allocation and there is money remaining in the DCA Fixed Interest Allocation, we will transfer the remaining money to the Wells Fargo VT Money Market subaccount. Such transfer will trigger a Market Value Adjustment if the transfer is made more than 30 days before the maturity date of the DCA Fixed Interest Allocation. If you do not specify to which subaccounts you want to transfer the dollar amount of the source account, we will transfer the money to the subaccounts in which you are invested on a proportional basis. The transfer date is the same day each month as your contract date. If, on any transfer date, your contract value in a source account is equal or less than the amount you have elected to have transferred, the entire amount will be transferred and the program will end. You may terminate the dollar cost averaging program at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next transfer date. You are permitted to transfer contract value to a Restricted Fund, subject to the limitations described above in this section and in "Appendix B -- The Investment Portfolios." Compliance with the individual and aggregate Restricted Fund limits will be reviewed when the dollar cost averaging program is established. Transfers under the dollar cost averaging program must be within those limits. We will not review again your dollar cost averaging election for compliance with the individual and aggregate limits for investment in the Restricted Funds except in the case of the transactions described below. o Amount added to source account: If you add amounts to the source account which would increase the amount to be transferred under the dollar cost averaging program, we will review the amounts to be transferred to ensure that the individual and aggregate limits are not being exceeded. If such limits would be exceeded, we will require that the dollar cost averaging transfer amounts be changed to ensure that the transfers are within the limits based on the then-current allocation of contract value to the Restricted Fund(s) and the then-current value of the amount designated to be transferred to that Restricted Fund(s). o Additional premium paid: Up to the individual Restricted Fund percentage limit may be allocated to a Restricted Fund. If you request more than the individual limit be allocated to a Restricted Fund, we will look at the aggregate limit, subtract the current allocation to Restricted Funds, and subtract the current value of amounts to be transferred under the dollar cost averaging program to Restricted Funds. The excess, if any, is the maximum that may be allocated pro-rata to the Restricted Funds. o Reallocation request is made while the dollar cost averaging program is active: If the reallocation would increase the amount allocated to Restricted Funds, the maximum that may be so allocated is the individual Restricted Fund percentage limit, less the current allocation to Restricted Funds and less the current value of any remaining amounts to be transferred under the dollar cost averaging program to the Restricted Funds. We may offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program, stop offering DCA Fixed Interest Allocations or otherwise modify, suspend or terminate this program. Such change will not affect any dollar cost averaging programs in operation at the time. AUTOMATIC REBALANCING If you have at least $10,000 of contract value invested in the subaccounts of Separate Account B, you may elect to have your investments in the subaccounts automatically rebalanced. Automatic rebalancing is not available if you participate in dollar cost averaging. Automatic rebalancing will not take place during the free look period. Transfers made pursuant to automatic rebalancing do not count toward the 12 transfer limit on free transfers. You are permitted to reallocate between Restricted and non-Restricted Funds, subject to the limitations described above, in this section and in Appendix B -- The Investment Portfolios. If the reallocation would increase the amount allocated to the Restricted Funds, the maximum that may be so allocated is the individual Restricted Fund percentage limit, less the current allocation to all Restricted Funds. We will transfer funds under your Contract on a quarterly, semi-annual, or annual calendar basis among the subaccounts to maintain the investment blend of your selected subaccounts. The minimum size of any allocation must be in full percentage points. Rebalancing does not affect any amounts that you have allocated to the Fixed Account. The program may be used in conjunction with the systematic withdrawal option only if withdrawals are taken pro-rata. To participate in automatic rebalancing, send satisfactory notice to our Customer Service Center. We will begin the program on the last business day of the period in which we receive the notice. You may cancel the program at any time. The program will automatically terminate if you choose to reallocate your contract value among the subaccounts or if you make an additional premium payment or partial withdrawal on other than a pro-rata basis. Additional premium payments and partial withdrawals made on a pro-rata basis will not cause the automatic rebalancing program to terminate. - -------------------------------------------------------------------------------- DEATH BENEFIT CHOICES - -------------------------------------------------------------------------------- DEATH BENEFIT DURING THE ACCUMULATION PHASE During the accumulation phase, a death benefit (and earnings multiplier benefit, if elected) is payable when either the contract owner, or the first of joint owners or the annuitant (when a contract owner is not an individual) dies. Assuming you are the contract owner, your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. We calculate the death benefit value as of the close of the business day on which we receive written notice and due proof of death, as well as any required paperwork, at our Customer Service Center ("claim date"). If your beneficiary wants to receive the death benefit on a date later than this, it may affect the amount of the benefit payable in the future. The proceeds may be received in a single sum, applied to any of the annuity options, or, if available, paid over the beneficiary's lifetime. (See "Systematic Withdrawals" above). A beneficiary's right to elect an annuity option or receive a lump-sum payment may have been restricted by the contract owner. If so, such rights or options will not be available to the beneficiary. If we do not receive a request to apply the death benefit proceeds to an annuity option, we will make a single sum distribution. We will generally pay death benefit proceeds within 7 days after our Customer Service Center has received sufficient information to make the payment. For information on required distributions under federal income tax laws, you should see "Required Distributions upon Contract Owner's Death." Your death benefit and mortality and expense risk charge depend on the category of contract owners to which you belong and on the death benefit that you choose. THE FOLLOWING DESCRIBES THE DEATH BENEFIT OPTIONS FOR CONTRACT OWNERS IN THE YR-2004 CATEGORY. FOR A DESCRIPTION OF THE DEATH BENEFITS APPLICABLE UNDER YOUR CONTRACT IF YOU ARE IN A DIFFERENT CATEGORY, PLEASE SEE THE APPLICABLE APPENDIX. PLEASE RETAIN THIS PROSPECTUS AND THE APPENDIX THAT IS APPLICABLE TO YOU SO YOU WILL HAVE IT FOR FUTURE REFERENCE. IF YOU ARE UNSURE OF WHICH CATEGORY APPLIES TO YOU, PLEASE CALL OUR CUSTOMER SERVICE CENTER. You may choose one of the following Death Benefits: (i) the Standard Death Benefit, (ii) the Quarterly Ratchet Enhanced Death Benefit or (iii) the Max 7 Enhanced Death Benefit. The Quarterly Ratchet Enhanced Death Benefit and the Max 7 Enhanced Death Benefit are available only if the contract owner or the annuitant (if the contract owner is not an individual) is not more than 79 years old at the time of purchase. The Enhanced Death Benefits are available only at the time you purchase your Contract. The Enhanced Death Benefits are not available where a Contract is owned by joint owners. If you do not choose a death benefit, your death benefit will be the Standard Death Benefit. ONCE YOU CHOOSE A DEATH BENEFIT, YOU CANNOT CHANGE IT. We may stop or suspend offering any of the Enhanced Death Benefit options to new Contracts. A change in ownership of the Contract may affect the amount of the death benefit and the Enhanced Death Benefit. The MGWB rider may also affect the death benefit. The death benefit may be subject to certain mandatory distribution rules required by federal tax law. We use the BASE DEATH BENEFIT to help determine the minimum death benefit payable under each of the death benefit options described below. You do not elect the Base Death Benefit. The Base Death Benefit is equal to the greater of: 1) the contract value; or 2) the cash surrender value. The STANDARD DEATH BENEFIT equals the GREATER of: 1) the Base Death Benefit; and 2) the Standard Minimum Guaranteed Death Benefit ("Standard MGDB") for amounts allocated to Covered Funds plus the contract value allocated to Excluded Funds. The Standard MGDB allocated to Covered Funds equals premiums allocated to Covered Funds less pro-rata adjustments for any withdrawals and transfers. The Standard MGDB allocated to Excluded Funds equals premiums allocated to Excluded Funds less pro-rata adjustments for any withdrawals and transfers. This calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the Standard MGDB on a pro-rata basis. The percentage reduction in the Standard MGDB for each Fund category (i.e. Covered or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall Standard MGDB. o Net transfers from Covered Funds to Excluded Funds will reduce the Standard MGDB in the Covered Funds on a pro-rata basis. The increase in the Standard MGDB allocated to Excluded Funds will equal the decrease in the Standard MGDB in Covered Funds. o Net transfers from Excluded Funds to Covered Funds will reduce the Standard MGDB in Excluded Funds on a pro-rata basis. The increase in the Standard MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the decrease in the Standard MGDB in Excluded Funds. ENHANCED DEATH BENEFIT OPTIONS. Under the Enhanced Death Benefit options, if you die before the annuity start date, your beneficiary will receive the greater of the Standard Death Benefit or the Enhanced Death Benefit option elected. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund or Excluded Fund on existing Contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Selecting a Special Fund or Excluded Fund may limit or reduce the Enhanced Death Benefit. For the period during which a portion of the contract value is allocated to a Special Fund or Excluded Fund, we may, at our discretion, reduce the mortality and expense risk charge attributable to that portion of the contract value. The reduced mortality and expense risk charge will be applicable only during that period. The QUARTERLY RATCHET ENHANCED DEATH BENEFIT equals the greater of: 1) the Standard Death Benefit; and 2) the Quarterly Ratchet Minimum Guaranteed Death Benefit ("Quarterly Ratchet MGDB") allocated to Covered Funds plus the contract value allocated to Excluded Funds. No funds are currently designated as Excluded Funds for purposes of the Quarterly Ratchet MGDB. The Quarterly Ratchet MGDB allocated to Covered Funds on the contract date equals the premium allocated to Covered Funds. On each quarterly anniversary (three months from the contract date and each three month anniversary of that date) that occurs on or prior to attainment of age 90, the Quarterly Ratchet MGDB in Covered Funds will be set to the greater of: 1) the current contract value in Covered Funds (after deductions occurring as of that date); or 2) the Quarterly Ratchet MGDB in Covered Funds from the prior quarterly anniversary (after deductions occurring on that date), adjusted for new premiums and partial withdrawals attributable to Covered Funds, and transfers. Other than on quarterly anniversaries, the Quarterly Ratchet MGDB in the Covered Funds is equal to the Quarterly Ratchet MGDB in the Covered Funds from the last quarterly anniversary, adjusted for new premiums and partial withdrawals attributable to Covered Funds, and transfers. The Quarterly Ratchet MGDB allocated to Excluded Funds on the contract date equals the premium allocated to Excluded Funds. The calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. On each quarterly anniversary that occurs on or prior to attainment of age 90, the Quarterly Ratchet MGDB in Excluded Funds will be set to the greater of: 1) the current contract value in Excluded Funds (after deductions occurring as of that date); or 2) the Quarterly Ratchet MGDB in the Excluded Funds from the prior quarterly anniversary (after deductions occurring on that date), adjusted for new premiums and partial withdrawals attributable to Excluded Funds, and transfers. Other than on quarterly anniversaries, the Quarterly Ratchet MGDB in the Excluded Funds is equal to the Quarterly Ratchet MGDB in the Excluded Funds from the last quarterly anniversary, adjusted for new premiums and partial withdrawals attributable to Excluded Funds, and transfers. Withdrawals reduce the Quarterly Ratchet MGDB on a pro-rata basis. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Net transfers from Covered Funds to Special or Excluded Funds will reduce the Quarterly Ratchet MGDB in Covered Funds on a pro-rata basis. The increase in the Quarterly Ratchet MGDB allocated to Special or Excluded Funds, as applicable, will equal the decrease in the Quarterly Ratchet MGDB in Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the Quarterly Ratchet MGDB in Excluded Funds on a pro-rata basis. The increase in the Quarterly Ratchet MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the reduction in the Quarterly Ratchet MGDB in Excluded Funds The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the Quarterly Ratchet Enhanced Death Benefit and the 7% Solution Death Benefit Element. Each element of the Max 7 Enhanced Death Benefit is determined independently of the other at all times. The 7% SOLUTION DEATH BENEFIT ELEMENT is the greater of: 1) the Standard Death Benefit; and 2) the lesser of: a) 3 times all premium payments, adjusted for withdrawals (the "cap"); or b) the SUM OF the 7% Solution Minimum Guaranteed Death Benefit Element ("7% MGDB") allocated to Covered Funds, the 7% MGDB allocated to Special Funds, and the contract value allocated to Excluded Funds. For purposes of calculating the 7% Solution Death Benefit Element, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio, the ING Limited Maturity Bond Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division, and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The 7% MGDB allocated to Covered Funds equals premiums allocated to Covered Funds, adjusted for withdrawals and transfers, accumulated at 7% until age 80 or the 7% MGDB reaches the cap. There is no accumulation once the cap is reached. Payment of additional premiums may cause the accumulation to resume, but there is no catch-up for any period where accumulation was suspended. The 7% MGDB allocated to Special Funds equals premiums allocated to Special Funds, adjusted for withdrawals and transfers. There is no accumulation of Minimum Guaranteed Death Benefit allocated to Special Funds. The 7% MGDB allocated to Excluded Funds is determined in the same way as the 7% MGDB for Covered Funds, but the calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the 7% MGDB on a pro-rata basis. The percentage reduction in the 7% MGDB for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The percentage reduction in the cap equals the percentage reduction in total contract value resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall 7% MGDB, but do affect the amount of the 7% MGDB in a particular Fund category. Net transfers from among the Funds will reduce the 7% MGDB in the Funds on a pro-rata basis. Note: In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. The enhanced death benefits may not be available in all states. EARNINGS MULTIPLIER BENEFIT RIDER. The earnings multiplier benefit rider is an optional rider that provides a separate death benefit in addition to the death benefit provided under the death benefit options described above. The rider is subject to state availability and is available only for issue ages 75 or under. You may add it at issue of the Contract or, if not yet available in your state, on the next contract anniversary following introduction of the rider in your state. The date on which the rider is added is referred to as the "rider effective date." If the rider is added at issue, the rider provides a benefit equal to a percentage of the gain under the Contract, up to a gain equal to 150% of premiums adjusted for withdrawals ("Maximum Base"). Currently, if added at issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: i) the Maximum Base; and ii) the contract value on the claim date minus premiums adjusted for withdrawals. If added after issue, the earnings multiplier benefit is equal to 55% (30% for issue ages 70 and above) of the lesser of: i) 150% of the contract value on the rider effective date, plus subsequent premiums adjusted for subsequent withdrawals; and ii) the contract value on the claim date minus the contract value on the rider effective date, minus subsequent premiums adjusted for subsequent withdrawals. The adjustment to the benefit for withdrawals is pro-rata, meaning that the benefit will be reduced by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. There is an extra charge for the earnings multiplier benefit rider and once selected, it may not be revoked. The rider does not provide a benefit if there is no gain under the Contract. As such, the Company would continue to assess a charge for the rider, even though no benefit would be payable at death under the rider if there are no gains under the Contract. Please see "Charges and Fees -- Earnings Multiplier Benefit Charge" for a description of the charge. The rider is available for both non-qualified and qualified contracts. Please see the discussions of possible tax consequences in "Federal Tax Considerations," "Individual Retirement Annuities," "Taxation of Qualified Contracts," and "Tax Consequences of Enhanced Death Benefit," in this prospectus. DEATH BENEFIT DURING THE INCOME PHASE If any contract owner or the annuitant dies after the annuity start date, we will pay the beneficiary any certain benefit remaining under the annuity in effect at the time. CONTINUATION AFTER DEATH -- SPOUSE If at the contract owner's death, the surviving spouse of the deceased contract owner is the beneficiary and such surviving spouse elects to continue the Contract as his or her own, the following will apply: If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value on that date is greater than zero, we will add such difference to the contract value. We will allocate such addition to the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the addition to the Wells Fargo VT Money Market subaccount, or its successor. Such addition to contract value will not affect the guaranteed death benefit or any living benefit rider values. Any addition to contract value is available only to the spouse of the owner as of the date of death of the owner if such spouse under the provisions of the Contract elects to continue the Contract as his or her own. The death benefits under each of the available options will continue, based on the surviving spouse's age on the date that ownership changes. At subsequent surrender, we will waive any surrender charge applicable to premiums paid prior to the date we receive due proof of death of the contract owner. Any premiums paid later will be subject to any applicable surrender charge. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, we will add the benefit to the contract value and allocate the benefit among the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the benefit to the Wells Fargo VT Money Market subaccount, or its successor. The earnings multiplier benefit rider will continue, if the surviving spouse is eligible based on his or her attained age. If the surviving spouse is older than the maximum rider issue age, the rider will terminate. The Maximum Base and the percentages will be reset based on the adjusted contract value. The calculation of the benefit going forward will be: (i) based on the attained age of the spouse at the time of the ownership change using current values as of that date; (ii) computed as if the rider were added to the Contract after issue and after the increase; and (iii) based on the Maximum Base and percentages in effect on the original rider date. However, we may permit the surviving spouse to elect to use the then-current Maximum Base and percentages in the benefit calculation. CONTINUATION AFTER DEATH -- NOT A SPOUSE If the beneficiary or surviving joint owner is not the spouse of the owner, the Contract may continue in force subject to the required distribution rules of the Code. See next section, "Required Distributions Upon Contract Owner's Death." If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value also on that date, is greater than zero, we will add such difference to the contract value. Such addition will be allocated to the variable subaccounts in proportion to the contract value in the subaccounts, unless we are directed otherwise. If there is no contract value in any subaccount, the addition will be allocated to the Wells Fargo VT Money Market subaccount, or its successor. The death benefit will then terminate. At subsequent surrender, any surrender charge applicable to premiums paid prior to the date we receive due proof of death of the contract owner will be waived. No additional premium payments may be made. If you elected the earnings multiplier benefit rider, and the benefit would otherwise be payable, we will add the benefit to the contract value and allocate the benefit among the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the benefit to the Wells Fargo VT Money Market subaccount, or its successor. The earnings multiplier benefit rider then terminates, whether or not a benefit was payable under the terms of the rider. REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH We will not allow any payment of benefits provided under a non-qualified Contract which do not satisfy the requirements of Section 72(s) of the Code. If any contract owner of a non-qualified Contract dies before the annuity start date, we will distribute the death benefit payable to the beneficiary as follows: (a) the death benefit must be completely distributed within 5 years of the contract owner's date of death; or (b) the beneficiary may elect, within the 1-year period after the contract owner's date of death, to receive the death benefit in the form of an annuity from us, provided that (i) such annuity is distributed in substantially equal installments over the life of such beneficiary or over a period not extending beyond the life expectancy of such beneficiary; and (ii) such distributions begin not later than 1 year after the contract owner's date of death. Notwithstanding (a) and (b) above, if the sole contract owner's beneficiary is the deceased owner's surviving spouse, then such spouse may elect to continue the Contract under the same terms as before the contract owner's death. Upon receipt of such election from the spouse at our Customer Service Center: (i) all rights of the spouse as contract owner's beneficiary under the Contract in effect prior to such election will cease; (ii) the spouse will become the owner of the Contract and will also be treated as the contingent annuitant, if none has been named and only if the deceased owner was the annuitant; and (iii) all rights and privileges granted by the Contract or allowed by us will belong to the spouse as contract owner of the Contract. We deem the spouse to have made this election if such spouse makes a premium payment to the Contract or fails to make a timely election as described in this paragraph. If the owner's beneficiary is not a spouse, the distribution provisions described in subparagraphs (a) and (b) above, will apply even if the annuitant and/or contingent annuitant are alive at the time of the contract owner's death. Subject to availability, and our then current rules, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the life expectancy of the beneficiary ("stretch"). "Stretch" payments will be subject to the same limitations as systematic withdrawals, and non-qualified "stretch" payments will be reported on the same basis as other systematic withdrawals. If we do not receive an election from an owner's beneficiary who is not a spouse within the 1-year period after the contract owner's date of death, then we will pay the death benefit to the owner's beneficiary in a cash payment within five years from the date of death. We will determine the death benefit as of the date we receive proof of death. Such cash payment will be in full settlement of all our liability under the Contract. If a contract owner dies after the annuity start date, all of the contract owner's rights granted under the Contract or allowed by us will pass to the contract owner's beneficiary. If a Contract has joint owners we will consider the date of death of the first joint owner as the death of the contract owner, and the surviving joint owner will become the beneficiary of the Contract. If any contract owner is not an individual, the death of an annuitant shall be treated as the death of a contract owner. - -------------------------------------------------------------------------------- THE ANNUITY OPTIONS - -------------------------------------------------------------------------------- ANNUITIZATION OF YOUR CONTRACT If the annuitant and contract owner are living on the annuity start date, we will begin making payments to the contract owner under an income plan. We will make these payments under the annuity option you chose. You may change an annuity option by making a written request to us at least 30 days before the annuity start date. The amount of the payments will be determined by applying your contract value, adjusted for any applicable Market Value Adjustment, on the annuity start date in accordance with the annuity option you chose. You may also elect an annuity option on surrender of the Contract for its cash surrender value or you may choose one or more annuity options for the payment of death benefit proceeds while it is in effect and before the annuity start date. If, at the time of the contract owner's death or the annuitant's death (if the contract owner is not an individual), no option has been chosen for paying death benefit proceeds, the beneficiary may choose an annuity option within 60 days. In all events, payments of death benefit proceeds must comply with the distribution requirements of applicable federal tax law. The minimum monthly annuity income payment that we will make is $20. We may require that a single sum payment be made if the contract value is less than $2,000 or if the calculated monthly annuity income payment is less than $20. For each annuity option we will issue a separate written agreement putting the annuity option into effect. Before we pay any annuity benefits, we require the return of your Contract. If your Contract has been lost, we will require that you complete and return the applicable lost Contract form. Various factors will affect the level of annuity benefits, such as the annuity option chosen, the applicable payment rate used and the investment performance of the portfolios and interest credited to the Fixed Interest Allocations. Our current annuity options provide only for fixed payments. Fixed annuity payments are regular payments, the amount of which is fixed and guaranteed by us. Some fixed annuity options provide fixed payments either for a specified period of time or for the life of the annuitant. The amount of life income payments will depend on the form and duration of payments you chose, the age of the annuitant or beneficiary (and gender, where appropriate under applicable law), the total contract value applied to periodic income payments, and the applicable payment rate. Our approval is needed for any option where: 1) The person named to receive payment is other than the contract owner or beneficiary; 2) The person named is not a natural person, such as a corporation; or 3) Any income payment would be less than the minimum annuity income payment allowed. SELECTING THE ANNUITY START DATE You select the annuity start date, which is the date on which the annuity payments commence. The annuity start date must be at least 5 years from the contract date but before the month immediately following the annuitant's 90th birthday, or 10 years from the contract date, if later. If, on the annuity start date, a surrender charge remains, the elected annuity option must include a period certain of at least 5 years. If you do not select an annuity start date, it will automatically begin in the month following the annuitant's 90th birthday, or 10 years from the contract date, if later. If the annuity start date occurs when the annuitant is at an advanced age, such as over age 85, it is possible that the Contract will not be considered an annuity for federal tax purposes. For more information, see "Federal Tax Considerations" and the SAI. For a Contract purchased in connection with a qualified plan, other than a Roth IRA, distributions must commence not later than April 1st of the calendar year following the calendar year in which you reach age 70 1/2 or, in some cases, retire. Distributions may be made through annuitization or withdrawals. You should consult a tax adviser for tax advice before investing. FREQUENCY OF ANNUITY PAYMENTS You choose the frequency of the annuity payments. They may be monthly, quarterly, semi-annually or annually. If we do not receive written notice from you, we will make the payments monthly. There may be certain restrictions on minimum payments that we will allow. BENEFICIARY RIGHTS A beneficiary's right to elect an annuity option or receive a lump sum may have been restricted by the contract owner. If so, such options will not be available to the beneficiary. THE ANNUITY OPTIONS We offer the 4 annuity options shown below. Payments under Options 1, 2 and 3 are fixed. Payments under Option 4 may be fixed or variable, although only fixed payments are currently available. For a fixed annuity option, the contract value in the subaccounts is transferred to the Company's general account. OPTION 1. INCOME FOR A FIXED PERIOD. Under this option, we make monthly payments in equal installments for a fixed number of years based on the contract value on the annuity start date. We guarantee that each monthly payment will be at least the amount stated in your Contract. If you prefer, you may request that payments be made in annual, semi-annual or quarterly installments. We will provide you with illustrations if you ask for them. If the cash surrender value or contract value is applied under this option, a 10% penalty tax may apply to the taxable portion of each income payment until the contract owner reaches age 59 1/2. OPTION 2. INCOME FOR LIFE WITH A PERIOD CERTAIN. Under this option, we make payments for the life of the annuitant in equal monthly installments and guarantee the income for at least a period certain, such as 10 or 20 years. Other periods certain may be available to you on request. You may choose a refund period instead. Under this arrangement, income is guaranteed until payments equal the amount of your Contract. If the person named lives beyond the guaranteed period, we will continue payments until his or her death. We guarantee that each payment will be at least the amount specified in the Contract corresponding to the person's age on his or her last birthday before the annuity start date. Amounts for ages not shown in the Contract are available if you ask for them. OPTION 3. JOINT LIFE INCOME. This option is available when there are 2 persons named to determine annuity payments. At least one of the persons named must be either the contract owner or beneficiary of the Contract. We guarantee monthly payments will be made as long as at least one of the named persons is living. There is no minimum number of payments. Monthly payment amounts are available if you ask for them. OPTION 4. ANNUITY PLAN. Under this option, your contract value can be applied to any other annuitization plan that we choose to offer on the annuity start date. Annuity payments under Option 4 may be fixed or variable. If variable and subject to the 1940 Act, it will comply with the requirements of such Act. PAYMENT WHEN NAMED PERSON DIES When the person named to receive payment dies, we will pay any amounts still due as provided in the annuity agreement between you and ING USA. The amounts we will pay are determined as follows: 1) For Option 1, or any remaining guaranteed payments under Option 2, we will continue payments. Under Options 1 and 2, the discounted values of the remaining guaranteed payments may be paid in a single sum. This means we deduct the amount of the interest each remaining guaranteed payment would have earned had it not been paid out early. We will base the discount interest rate on the interest rate used to calculate the payments for Options 1 and 2. 2) For Option 3, no amounts are payable after both named persons have died. 3) For Option 4, the annuity option agreement will state the amount we will pay, if any. - -------------------------------------------------------------------------------- OTHER CONTRACT PROVISIONS - -------------------------------------------------------------------------------- REPORTS TO CONTRACT OWNERS We will send you a quarterly report within 31 days after the end of each calendar quarter. The report will show the contract value, cash surrender value, and the death benefit as of the end of the calendar quarter. The report will also show the allocation of your contract value and reflects the amounts deducted from or added to the contract value since the last report. You have 30 days to notify our Customer Service Center of any errors or discrepancies contained in the report and in any confirmation notice. We will also send you copies of any shareholder reports of the investment portfolios in which Separate Account B invests, as well as any other reports, notices or documents we are required by law to furnish to you. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (i) when the New York Stock Exchange is closed; (ii) when trading on the New York Stock Exchange is restricted; (iii) when an emergency exists as determined by the SEC so that the sale of securities held in Separate Account B may not reasonably occur or so that the Company may not reasonably determine the value of Separate Account B's net assets; or (iv) during any other period when the SEC so permits for the protection of security holders. We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. IN CASE OF ERRORS IN YOUR APPLICATION If an age or gender given in the application or enrollment form is misstated, the amounts payable or benefits provided by the Contract shall be those that the premium payment would have bought had the age or gender not been misstated. ASSIGNING THE CONTRACT AS COLLATERAL You may assign a non-qualified Contract as collateral security for a loan but you should understand that your rights and any beneficiary's rights may be subject to the terms of the assignment. An assignment likely has federal tax consequences. You should consult a tax adviser for tax advice. You must give us satisfactory written notice at our Customer Service Center in order to make or release an assignment. We are not responsible for the validity of any assignment. CONTRACT CHANGES -- APPLICABLE TAX LAW We have the right to make changes in the Contract to continue to qualify the Contract as an annuity under applicable federal tax law. We will give you advance notice of such changes. FREE LOOK You may cancel your Contract within your 10-day free look period. We deem the free look period to expire 15 days after we mail the Contract to you. Some states may require a longer free look period. To cancel, you need to send your Contract to our Customer Service Center or to the agent from whom you purchased it. We will refund the contract value. For purposes of the refund during the free look period, (i) we adjust your contract value for any market value adjustment (if you have invested in the Fixed Account), and (ii) then we include a refund of any charges deducted from your contract value. Because of the market risks associated with investing in the portfolios and the potential positive or negative effect of the market value adjustment, the contract value returned may be greater or less than the premium payment you paid. Some states require us to return to you the amount of the paid premium (rather than the contract value) in which case you will not be subject to investment risk during the free look period. In these states, your premiums designated for investment in the subaccounts may be allocated during the free look period to a subaccount specially designated by the Company for this purpose (currently, the Wells Fargo VT Money Market subaccount). We may, in our discretion, require that premiums designated for investment in the subaccounts from all other states as well as premiums designated for a Fixed Interest Allocation be allocated to the specially designated subaccount during the free look period. Your Contract is void as of the day we receive your Contract and cancellation request in good order. We determine your contract value at the close of business on the day we void your Contract. If you keep your Contract after the free look period and the investment is allocated to a subaccount specially designated by the Company, we will put your money in the subaccount(s) chosen by you, based on the accumulation unit value next computed for each subaccount, and/or in the Fixed Interest Allocation chosen by you. SPECIAL ARRANGEMENTS We may reduce or waive any Contract, rider, or benefit fees or charges for certain group or sponsored arrangements, under special programs, and for certain employees, agents, and related persons of our parent corporation and its affiliates. We reduce or waive these items based on expected economies, and the variations are based on differences in costs or services. SELLING THE CONTRACT Our affiliate Directed Services, Inc. ("DSI"), 1475 Dunwoody Dr., West Chester, PA 19380 is the principal underwriter and distributor of the Contract as well as for other ING USA contracts. DSI, a New York corporation, is registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and is a member of the National Association of Securities Dealers, Inc. ("NASD"). DSI does not retain any commissions or compensation paid to it by ING USA for Contract sales. DSI enters into selling agreements with affiliated and unaffiliated broker/dealers to sell the Contracts through their registered representatives who are licensed to sell securities and variable insurance products. Selling firms are also registered with the SEC and are NASD member firms. DSI pays selling firms for Contract sales according to one or more schedules. This compensation is generally based on a percentage of premium payments. DSI has entered into a selling agreement with Wells Fargo Securities, Inc. ("Wells Fargo") to sell the Contracts through registered representatives of Wells Fargo and its affiliated broker dealers. Wells Fargo may receive commissions of up to 7.0% of premium payments. In addition, selling firms may receive ongoing annual compensation of up to 1.25% of all, or a portion, of values of Contracts sold through the firm. Individual representatives may receive all or a portion of compensation paid to their selling firm, depending on the firm's practices. Commissions and annual compensation, when combined, could exceed 7.0% of total premium payments. DSI may also compensate wholesalers/distributors, and their sales management personnel, for Contract sales within the wholesale/distribution channel. This compensation may be based on a percentage of premium payments, and/or a percentage of Contract values. Affiliated selling firms may include Aeltus Capital, Inc., BancWest Investment Services, Inc., Baring Investment Services, Inc., Compulife Investor Services, Inc., Financial Network Investment Corporation, Financial Northeastern Corporation, Granite Investment Services, Inc. Guaranty Brokerage Services, Inc., IFG Network Securities, Inc., ING America Equities, Inc., ING Barings Corp., ING Brokers Network, LLC, ING Direct Funds Limited, ING DIRECT Securities, Inc., ING Financial Advisers, LLC, ING Furman Selz Financial Services LLC, ING Funds Distributor, LLC, ING TT&S (U.S.) Securities, Inc., Investors Financial Group, LLC, Locust Street Securities, Inc., Multi-Financial Securities Corporation, PrimeVest Financial Services, Inc., Systematized Benefits Administrators, Inc., United Variable Services, Inc., VESTAX Securities Corporation, and Washington Square Securities, Inc. We may also make additional payments to broker/dealers for marketing and educational expenses and to reimburse certain expenses of registered representatives relating to sales of Contracts. We do not pay any additional compensation on the sale or exercise of any of the Contract's optional benefit riders offered in this prospectus. - -------------------------------------------------------------------------------- OTHER INFORMATION - -------------------------------------------------------------------------------- VOTING RIGHTS We will vote the shares of a Trust owned by Separate Account B according to your instructions. However, if the 1940 Act or any related regulations should change, or if interpretations of it or related regulations should change, and we decide that we are permitted to vote the shares of a Trust in our own right, we may decide to do so. We determine the number of shares that you have in a subaccount by dividing the Contract's contract value in that subaccount by the net asset value of one share of the portfolio in which a subaccount invests. We count fractional votes. We will determine the number of shares you can instruct us to vote 180 days or less before a Trust shareholder meeting. We will ask you for voting instructions by mail at least 10 days before the meeting. If we do not receive your instructions in time, we will vote the shares in the same proportion as the instructions received from all Contracts in that subaccount. We will also vote shares we hold in Separate Account B which are not attributable to contract owners in the same proportion. STATE REGULATION We are regulated by the Insurance Department of the State of Iowa. We are also subject to the insurance laws and regulations of all jurisdictions where we do business. The Contract offered by this prospectus has been approved where required by those jurisdictions. We are required to submit annual statements of our operations, including financial statements, to the Insurance Departments of the various jurisdictions in which we do business to determine solvency and compliance with state insurance laws and regulations. LEGAL PROCEEDINGS We are not aware of any pending legal proceedings which involve Separate Account B as a party. We are, or may be in the future, a defendant in various legal proceedings in connection with the normal conduct of our insurance operations. Some of these cases may seek class action status and may include a demand for punitive damages as well as for compensatory damages. In the opinion of management, the ultimate resolution of any existing legal proceeding is not likely to have a material adverse effect on our ability to meet our obligations under the contract. Directed Services, Inc., the principal underwriter and distributor of the contract, is not involved in any legal proceeding which, in the opinion of management, is likely to have a material adverse effect on its ability to distribute the contract. LEGAL MATTERS The legal validity of the Contracts was passed on by Kimberly J. Smith, Assistant Secretary of ING USA. EXPERTS The audited consolidated financial statements and schedules of Golden American as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002, and the unaudited financial statements of Golden American for the quarter ended September 30, 2003, and the unaudited statement of assets and liabilities of Separate Account B for the quarter ended September 30, 2003 and the statement of assets and liabilities of Separate Account B as of December 31, 2002 and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended, appearing in the SAI and Registration Statement have been audited by Ernst & Young LLP, independent auditors, as set forth in their reports thereon appearing in the SAI and in the Registration Statement, and are included in reliance on such reports given on the authority of such firm as experts in accounting and auditing. - -------------------------------------------------------------------------------- FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- The following summary provides a general description of the federal income tax considerations associated with this Contract and does not purport to be complete or to cover all tax situations. This discussion is not intended as tax advice. You should consult your counsel or other competent tax advisers for more complete information. This discussion is based upon our understanding of the present federal income tax laws. We do not make any representations as to the likelihood of continuation of the present federal income tax laws or as to how they may be interpreted by the IRS. This summary references enhanced death benefits and earnings multiplier benefits that may not be available under your Contract. Please see your Contract, and "The Annuity Contract -- Optional Riders" and "Death Benefit Choices" in this prospectus. TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED The Contract may be purchased on a non-tax-qualified basis or purchased on a tax-qualified basis. Qualified Contracts are designed for use by individuals whose premium payments are comprised solely of proceeds from and/or contributions under retirement plans that are intended to qualify as plans entitled to special income tax treatment under Sections 401(a), 403(b), 408, or 408A of the Code. The ultimate effect of federal income taxes on the amounts held under a Contract, or annuity payments, depends on the type of retirement plan, on the tax and employment status of the individual concerned, and on our tax status. In addition, certain requirements must be satisfied in purchasing a qualified Contract with proceeds from a tax-qualified plan and receiving distributions from a qualified Contract in order to continue receiving favorable tax treatment. Some retirement plans are subject to distribution and other requirements that are not incorporated into our Contract administration procedures. Contract owners, participants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contract comply with applicable law. Therefore, you should seek competent legal and tax advice regarding the suitability of a Contract for your particular situation. The following discussion assumes that qualified Contracts are purchased with proceeds from and/or contributions under retirement plans that qualify for the intended special federal income tax treatment. TAX STATUS OF THE CONTRACTS DIVERSIFICATION REQUIREMENTS. The Code requires that the investments of a variable account be "adequately diversified" in order for non-qualified Contracts to be treated as annuity contracts for federal income tax purposes. It is intended that Separate Account B, through the subaccounts, will satisfy these diversification requirements. INVESTOR CONTROL. In certain circumstances, owners of variable annuity contracts have been considered for federal income tax purposes to be the owners of the assets of the separate account supporting their contracts due to their ability to exercise investment control over those assets. When this is the case, the contract owners have been currently taxed on income and gains attributable to the separate account assets. There is little guidance in this area, and some features of the Contracts, such as the flexibility of a contract owner to allocate premium payments and transfer contract values, have not been explicitly addressed in published rulings. It is possible that these Contract features may exceed the limits imposed by the tax law. If so, you would be treated as the owner of the Separate Account B assets that underlie your Contract and thus subject to current taxation on the income and gains from those assets. While we believe that the Contracts do not give contract owners investment control over Separate Account B assets, we reserve the right to modify the Contracts as necessary to prevent a contract owner from being treated as the owner of the Separate Account B assets supporting the Contract. REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for federal income tax purposes, the Code requires any non-qualified Contract to contain certain provisions specifying how your interest in the Contract will be distributed in the event of your death. The non-qualified Contracts contain provisions that are intended to comply with these Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements are clarified by regulation or otherwise. See "Death Benefit Choices" for additional information on required distributions from non-qualified contracts. Qualified Contracts are subject to special rules -- see below. The following discussion assumes that the Contracts will qualify as annuity contracts for federal income tax purposes. IN GENERAL. We believe that if you are a natural person you will generally not be taxed on increases in the value of a Contract until a distribution occurs or until annuity payments begin. For these purposes, the agreement to assign or pledge any portion of the contract value, and, in the case of a qualified Contract, any portion of an interest in the qualified plan, generally will be treated as a distribution. TAXATION OF NON-QUALIFIED CONTRACTS NON-NATURAL PERSON. The owner of any annuity contract who is not a natural person generally must include in income any increase in the excess of the contract value over the "investment in the contract" (generally, the premiums or other consideration you paid for the contract less any nontaxable withdrawals) during the taxable year. There are some exceptions to this rule and a prospective contract owner that is not a natural person may wish to discuss these with a tax adviser. The following discussion generally applies to Contracts owned by natural persons. DELAYED ANNUITY STARTING DATE. If the Contract's annuity starting date occurs (or is scheduled to occur) at a time when the annuitant has reached an advanced age (e.g., age 85), it is possible that the Contract would not be treated as an annuity for federal income tax purposes. In that event, the income and gains under the Contract could be currently includible in your income. WITHDRAWALS. When a withdrawal from a non-qualified Contract occurs (including amounts paid to you under the MGWB rider), the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the contract value (unreduced by the amount of any surrender charge) immediately before the distribution over the contract owner's investment in the Contract at that time. The contract value that applies for this purpose is unclear in some respects. For example, the living benefits provided under the Contract, i.e., the MGAB, MGWB and MGIB, as well as the market value adjustment could increase the contract value that applies. Thus, the income on the Contracts could be higher than the amount of income that would be determined without regard to such benefits. As a result, you could have higher amounts of income than will be reported to you. In the case of a surrender under a non-qualified Contract, the amount received generally will be taxable only to the extent it exceeds the contract owner's investment in the Contract. The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. Certain charges are imposed with respect to the death benefit. It is possible that these charges (or some portion thereof) could be treated for federal tax purposes as a distribution from the Contract. PENALTY TAX ON CERTAIN WITHDRAWALS. A distribution from a non-qualified Contract may be subject to a federal tax penalty equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: o made on or after the taxpayer reaches age 59 1/2; o made on or after the death of a contract owner; o attributable to the taxpayer's becoming disabled; or o made as part of a series of substantially equal periodic payments for the life (or life expectancy) of the taxpayer. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. A tax adviser should be consulted with regard to exceptions from the penalty tax. ANNUITY PAYMENTS. Although tax consequences may vary depending on the payment option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of an annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the Contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the Contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. The tax treatment of partial annuitizations is unclear. We currently treat any partial annuitizations, such as those associated with the MGIB benefit, as withdrawals rather than as annuity payments. Please consult your tax adviser before electing a partial annuitization. TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed from a Contract because of your death or the death of the annuitant. Generally, such amounts are includible in the income of recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract, or (ii) if distributed under a payment option, they are taxed in the same way as annuity payments. Special rules may apply to amounts distributed after a Beneficiary has elected to maintain Contract value and receive payments. TRANSFERS, ASSIGNMENTS AND EXCHANGES. A transfer or assignment of ownership of a Contract, the designation of an annuitant or payee other than an owner, or the exchange of a Contract may result in certain tax consequences to you that are not discussed herein. A contract owner contemplating any such transfer, assignment, designation or exchange, should consult a tax adviser as to the tax consequences. MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts that are issued by us (or our affiliates) to the same contract owner during any calendar year are treated as one non-qualified deferred annuity contract for purposes of determining the amount includible in such contract owner's income when a taxable distribution occurs. TAXATION OF QUALIFIED CONTRACTS The Contracts are designed for use with several types of qualified plans. The tax rules applicable to participants in these qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from: contributions in excess of specified limits; distributions before age 59 1/2 (subject to certain exceptions); distributions that do not conform to specified commencement and minimum distribution rules; and in other specified circumstances. Therefore, no attempt is made to provide more than general information about the use of the Contracts with the various types of qualified retirement plans. Contract owners, annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under these qualified retirement plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the Contract, but we shall not be bound by the terms and conditions of such plans to the extent such terms contradict the Contract, unless the Company consents. For qualified plans under Section 401(a) and 403(b), the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the plan participant for whose benefit the contract is purchased (i) reaches age 70 1/2 or (ii) retires, and must be made in a specified form or manner. If the plan participant is a "5 percent owner" (as defined in the Code), distributions generally must begin no later than April 1 of the calendar year following the calendar year in which the plan participant reaches age 70 1/2. For IRAs described in Section 408, distributions generally must commence no later than by April 1 of the calendar year following the calendar year in which the individual contract owner reaches age 70 1/2. Roth IRAs under Section 408A do not require distributions at any time before the contract owner's death. PLEASE NOTE THAT REQUIRED MINIMUM DISTRIBUTIONS UNDER QUALIFIED CONTRACTS MAY BE SUBJECT TO SURRENDER CHARGE AND/OR MARKET VALUE ADJUSTMENT, IN ACCORDANCE WITH THE TERMS OF THE CONTRACT. THIS COULD AFFECT THE AMOUNT THAT MUST BE TAKEN FROM THE CONTRACT IN ORDER TO SATISFY REQUIRED MINIMUM DISTRIBUTIONS. DIRECT ROLLOVERS. If the Contract is used in connection with a pension, profit-sharing, or annuity plan qualified under sections 401(a) or 403(a) of the Code, or is a tax-sheltered annuity under section 403(b) of the Code, or is used with an eligible deferred compensation plan that has a government sponsor and that is qualified under section 457(b), any "eligible rollover distribution" from the Contract will be subject to direct rollover and mandatory withholding requirements. An eligible rollover distribution generally is any taxable distribution from a qualified pension plan under section 401(a) of the Code, qualified annuity plan under section 403(a) of the Code, section 403(b) annuity or custodial account, or an eligible section 457(b) deferred compensation plan that has a government sponsor, excluding certain amounts (such as minimum distributions required under section 401(a)(9) of the Code, distributions which are part of a "series of substantially equal periodic payments" made for life or a specified period of 10 years or more, or hardship distributions as defined in the tax law). Under these requirements, federal income tax equal to 20% of the eligible rollover distribution will be withheld from the amount of the distribution. Unlike withholding on certain other amounts distributed from the Contract, discussed below, you cannot elect out of withholding with respect to an eligible rollover distribution. However, this 20% withholding will not apply if, instead of receiving the eligible rollover distribution, you elect to have it directly transferred to certain qualified plans. Prior to receiving an eligible rollover distribution, you will receive a notice (from the plan administrator or us) explaining generally the direct rollover and mandatory withholding requirements and how to avoid the 20% withholding by electing a direct rollover. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS. Section 401(a) of the Code permits corporate employers to establish various types of retirement plans for employees, and permits self-employed individuals to establish these plans for themselves and their employees. These retirement plans may permit the purchase of the Contracts to accumulate retirement savings under the plans. Adverse tax or other legal consequences to the plan, to the participant, or to both may result if this Contract is assigned or transferred to any individual as a means to provide benefit payments, unless the plan complies with all legal requirements applicable to such benefits before transfer of the Contract. Employers intending to use the Contract with such plans should seek competent advice. INDIVIDUAL RETIREMENT ANNUITIES. Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an "Individual Retirement Annuity" or "IRA." These IRAs are subject to limits on the amount that can be contributed, the deductible amount of the contribution, the persons who may be eligible, and the time when distributions commence. Also, distributions from certain other types of qualified retirement plans may be "rolled over" on a tax-deferred basis into an IRA. Also, amounts in another IRA or individual retirement account can be rolled over or transferred tax-free to an IRA. There are significant restrictions on rollover or transfer contributions from Savings Incentive Match Plans for Employees (SIMPLE), under which certain employers may provide contributions to IRAs on behalf of their employees, subject to special restrictions. Employers may establish Simplified Employee Pension (SEP) Plans to provide IRA contributions on behalf of their employees. If you make a tax-free rollover of a distribution from any of these IRAs, you may not make another tax-free rollover from the IRA within a 1-year period. Sales of the Contract for use with IRAs may be subject to special requirements of the IRS. DISTRIBUTIONS - IRAS. All distributions from a traditional IRA are taxed as received unless either one of the following is true: o The distribution is rolled over to a plan eligible to receive rollovers or to another traditional IRA or certain qualified plans in accordance with the Tax Code; or o You made after-tax contributions to the IRA. In this case, the distribution will be taxed according to rules detailed in the Tax Code. To avoid certain tax penalties, you and any designated beneficiary must also meet the minimum distribution requirements imposed by the Tax Code. The requirements do not apply to Roth IRA contracts while the owner is living. These rules may dictate one or more of the following: o Start date for distributions; o The time period in which all amounts in your account(s) must be distributed; or o Distribution amounts. Generally, you must begin receiving distributions from a traditional IRA by April 1 of the calendar year following the calendar year in which you attain age 70 1/2. We must pay out distributions from the contract over one of the following time periods: o Over your life or the joint lives of you and your designated beneficiary; or o Over a period not greater than your life expectancy or the joint life expectancies of you and your designated beneficiary. The amount of each periodic distribution must be calculated in accordance with IRS regulations. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax is imposed on the required amount that was not distributed. The following applies to the distribution of death proceeds under 408(b) and 408A (Roth IRA - See below) plans. Different distribution requirements apply after your death. If your death occurs after you begin receiving minimum distributions under the contract, distributions must be made at least as rapidly as under the method in effect at the time of your death. Code section 401(a)(9) provides specific rules for calculating the minimum required distributions at your death. The death benefit under the contract and also certain other contract benefits, such as living benefits, may affect the amount of the required minimum distribution that must be taken. If your death occurs before you begin receiving minimum distributions under the contract, your entire balance must be distributed by December 31 of the calendar year containing the fifth anniversary of the date of your death. For example, if you die on September 1, 2002, your entire balance must be distributed to the designated beneficiary by December 31, 2007. However, if the distributions begin by December 31 of the calendar year following the calendar year of your death, and you have named a designated beneficiary, then payments may be made over either of the following time-frames: o Over the life of the designated beneficiary; or o Over a period not extending beyond the life expectancy of the designated beneficiary. If the designated beneficiary is your spouse, distributions must begin on or before the later of the following: o December 31 of the calendar year following the calendar year of your death; or o December 31 of the calendar year in which you would have attained age 70 1/2. In lieu of taking a distribution under these rules, a spouse who is the sole beneficiary may elect to treat the account as his or her own IRA. In such case, the surviving spouse will be able to make contributions to the account, make rollovers from the account, and defer taking a distribution until his or her age 70 1/2. The surviving spouse is deemed to have made such an election if the surviving spouse makes a rollover to or from the account, makes additional contributions to the account, or fails to take a distribution within the required time period. ROTH IRA. Section 408A of the Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to a Roth IRA, which are subject to limits on the amount of the contributions and the persons who may be eligible to contribute, are not deductible, and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. Certain qualifying individuals may convert an IRA, SEP, or SIMPLE IRA, to a Roth IRA. Such rollovers and conversions are subject to tax, and other special rules may apply. If you make a tax-free rollover of a distribution from a Roth IRA to another Roth IRA, you may not make another tax-free rollover from the Roth IRA from which the rollover was made within a 1-year period. A 10% penalty may apply to amounts attributable to a conversion to a Roth IRA if the amounts are distributed during the five taxable years beginning with the year in which the conversion was made. DISTRIBUTIONS -- ROTH IRAS. A qualified distribution from a Roth IRA is not taxed when it is received. A qualified distribution is a distribution: o Made after the five-taxable year period beginning with the first taxable year for which a contribution was made to a Roth IRA of the owner; and o Made after you attain age 59 1/2, die, become disabled as defined in the Tax Code, or for a qualified first-time home purchase. If a distribution is not qualified, it will be taxable to the extent of the accumulated earnings. Under special ordering rules, a partial distribution will first be treated generally as a return of contributions which is not taxable and then as taxable accumulated earnings. TAX SHELTERED ANNUITIES. Section 403(b) of the Code allows employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a Contract that will provide an annuity for the employee's retirement. These premium payments may be subject to FICA (Social Security) tax. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the last year beginning before January 1, 1989, are not allowed prior to age 59 1/2, severance from employment, death or disability. Distributions allocable to salary reduction contributions, but not earnings on such contributions, may also be distributed upon hardship. Certain penalties may apply. TSAS -- LOANS. Loans may be available if you purchased your contract in connection with a non-ERISA plan qualified under Section 403(b) of the Code ("TSA"). We do not currently permit loans under Section 403(b) Contracts that are subject to ERISA. If your contract was issued in connection with a TSA and the terms of your plan permit, you may take a loan from us, using your surrender value as collateral for the loan. Loans are subject to the terms of the Contract, your 403(b) plan, and the Code. The amount and number of loans outstanding at any one time under your TSA are limited, whether under our contracts or those of other carriers. We may modify the terms of a loan to comply with changes in applicable law. Various mandatory repayment requirements apply to loans, and failure to repay generally would result in income to you and the potential application of tax penalties. We urge you to consult with a qualified tax advisor prior to effecting a loan transaction under your Contract. We may apply additional restrictions or limitations on loans, and you must make loan requests in accordance with our administrative practices and loan request procedures in effect at the time you submit your request. Read the terms of the loan agreement before submitting any request. Any outstanding loan balance impacts the following: 1) Withdrawals and Charges: We determine amounts available for maximum withdrawal amounts, free partial withdrawals, systematic withdrawals and waiver of administrative charges by reducing the otherwise applicable amounts by the amount of any outstanding loan balance. 2) Death Benefits, Annuitization and Surrenders: We deduct the outstanding loan balance from any amounts otherwise payable and in determining the amount available for annuitization. 3) Riders: a) Minimum Guaranteed Income Benefit ("MGIB") Rider. If you exercise the MGIB rider, we reduce the MGIB Base by an amount equal to the ratio of the outstanding loan balance to the contract value multiplied by the MGIB Base. b) Minimum Guaranteed Withdrawal Benefit ("MGWB") Rider. The portion of the contract value used to pay off the outstanding loan balance will reduce the MGWB Withdrawal Account. We do not recommend the MGWB rider if loans are contemplated. c) Minimum Guaranteed Accumulation Benefit ("MGAB") Rider. Generally, loan repayment periods should not extend into the 3-year period preceding the end of the Waiting Period, because transfers made within such 3-year period reduce the MGAB Base and the MGAB Charge Base pro-rata based on the percentage of contract value transferred. Transfers between the TSA Special Fixed Account and the variable accounts will not be excluded from this treatment. TSAS -- DISTRIBUTIONS. All distributions from Section 403(b) plans are taxed as received unless either of the following are true: o The distribution is rolled over to another plan eligible to receive rollovers or to a traditional individual retirement annuity/account (IRA) in accordance with the Tax Code; or o You made after-tax contributions to the plan. In this case, the amount will be taxed according to rules detailed in the Tax Code. Generally, you must begin receiving distributions by April 1 of the calendar year following the calendar year in which you attain age 70 1/2 or retire, whichever occurs later, unless you had amounts under the contract as of December 31, 1986. In this case, distribution of these amounts generally must begin by the end of the calendar year in which you attain age 75 or retire, if later. The death benefit under the contract and also certain other contract benefits, such as the living benefits, may affect the amount of the required minimum distribution that must be taken. If you take any distributions in excess of the minimum required amount, then special rules require that some or all of the December 31, 1986 balance be distributed earlier. TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. It is possible that the IRS could characterize such a death benefit as an incidental death benefit. There are limitations on the amount of incidental benefits that may be provided under pension and profit sharing plans. In addition, the provision of such benefits may result in currently taxable income to participants. Also, as stated above, the presence of the death benefit, as well as certain other contract benefits, could affect the amount of required minimum distributions. OTHER TAX CONSEQUENCES As noted above, the foregoing comments about the federal tax consequences under the Contracts are not exhaustive, and special rules are provided with respect to other tax situations not discussed in this prospectus. Further, the federal income tax consequences discussed herein reflect our understanding of current law, and the law may change. Federal estate and state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a Contract depend on the individual circumstances of each contract owner or recipient of the distribution. A competent tax adviser should be consulted for further information. POSSIBLE CHANGES IN TAXATION Although the likelihood of legislative change is uncertain, there is always the possibility that the tax treatment of the Contracts could change by legislation or other means. It is also possible that any change could be retroactive (that is, effective before the date of the change). You should consult a tax adviser with respect to legislative developments and their effect on the Contract. FEDERAL INCOME TAX WITHHOLDING We will withhold and remit to the U.S. government a part of the taxable portion of each distribution made under a Contract unless the distributee notifies us at or before the time of the distribution that he or she elects not to have any amounts withheld. In certain circumstances, we may be required to withhold tax, as explained above. The withholding rates applicable to the taxable portion of periodic annuity payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. In addition, a 10% withholding rate applies to the taxable portion of non-periodic payments (including withdrawals prior to the annuity starting date) and conversions of, and rollovers from, non-Roth IRAs to Roth IRAs. Regardless of whether you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of the payment. As discussed above, the withholding rate applicable to eligible rollover distributions is 20%. - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- TABLE OF CONTENTS Item Introduction Description of ING USA Annuity and Life Insurance Company Safekeeping of Assets The Administrator Independent Auditors Distribution of Contracts Performance Information IRA Partial Withdrawal Option Other Information Financial Statements of Golden American Life Insurance Company Financial Statements of Separate Account B PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER THE PROSPECTUS. SEND THE FORM TO OUR CUSTOMER SERVICE CENTER AT THE ADDRESS SHOWN ON THE PROSPECTUS COVER. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT B. Please Print or Type: -------------------------------------------------- NAME -------------------------------------------------- SOCIAL SECURITY NUMBER -------------------------------------------------- STREET ADDRESS -------------------------------------------------- CITY, STATE, ZIP WF Landmark - ###### 02/XX/2004 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -------------------------------------------------------------------------------- APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION Except for subaccounts which did not commence operations as of December 31, 2002, the following tables give (1) the accumulation unit value ("AUV") at the beginning of the period, (2) the AUV at the end of the period and (3) the total number of accumulation units outstanding at the end of the period for each subaccount of ING USA Separate Account B available under the Contract for the indicated periods.
2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.65 % FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.58 $10.00 (7) AUV at End of Period $7.80 $9.58 Number of Accumulation Units Outstanding at End of Period 177,883 -- ING AIM MID CAP GROWTH AUV at Beginning of Period $14.46 $18.65 $21.51 (1) AUV at End of Period $9.71 $14.46 $18.65 Number of Accumulation Units Outstanding at End of Period 335,993 414,298 185,121 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.42 $17.00 $19.97 (1) AUV at End of Period $9.92 $14.42 $17.00 Number of Accumulation Units Outstanding at End of Period 481,010 388,823 181,294 ING DEVELOPING WORLD AUV at Beginning of Period $7.01 $7.52 $11.62 (1) AUV at End of Period $6.16 $7.01 $7.52 Number of Accumulation Units Outstanding at End of Period 249,736 203,417 52,533 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.99 $19.14 $17.30 (1) AUV at End of Period $14.68 $17.99 $19.14 Number of Accumulation Units Outstanding at End of Period 318,880 183,496 41,973 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.06 $9.87 $10.00 (3) AUV at End of Period $7.19 $9.06 $9.87 Number of Accumulation Units Outstanding at End of Period 877,092 390,858 9,164 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.84 $9.94 $10.00 (3) AUV at End of Period $7.01 $8.84 $9.94 Number of Accumulation Units Outstanding at End of Period 1,160,152 480,294 19,469 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.30 $8.88 $10.00 (3) AUV at End of Period $6.04 $8.30 $8.88 Number of Accumulation Units Outstanding at End of Period 246,924 151,551 9,174 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $21.05 $24.59 $28.98 (1) AUV at End of Period $14.64 $21.05 $24.59 Number of Accumulation Units Outstanding at End of Period 479,670 337,955 124,676 ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.21 Number of Accumulation Units Outstanding at End of Period 81,977 ING JP MORGAN SMALLCAP AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.83 Number of Accumulation Units Outstanding at End of Period 114,380 ING MARSICO GROWTH AUV at Beginning of Period $14.92 $21.75 $28.89 (1) AUV at End of Period $10.34 $14.92 $21.75 Number of Accumulation Units Outstanding at End of Period 1,434,608 1,236,743 693,052 ING MFS MID CAP GROWTH AUV at Beginning of Period $31.27 $41.63 $38.15 (1) AUV at End of Period $15.74 $31.27 $41.63 Number of Accumulation Units Outstanding at End of Period 844,740 569,707 186,073 ING MFS RESEARCH AUV at Beginning of Period $20.06 $25.97 $26.65 (1) AUV at End of Period $14.82 $20.06 $25.97 Number of Accumulation Units Outstanding at End of Period 921,349 792,240 378,215 ING PIMCO CORE BOND AUV at Beginning of Period $11.64 $11.55 $11.32 (1) AUV at End of Period $12.44 $11.64 $11.55 Number of Accumulation Units Outstanding at End of Period 1,936,106 244,538 14,652 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.59 $11.57 $10.00 (1) AUV at End of Period $8.49 $11.59 $11.57 Number of Accumulation Units Outstanding at End of Period 1,505,988 807,563 70,600 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.58 $11.24 $10.00 (1) AUV at End of Period $8.01 $10.58 $11.24 Number of Accumulation Units Outstanding at End of Period 1,030,211 401,684 21,065 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $27.27 $25.23 $20.42 (1) AUV at End of Period $26.95 $27.27 $25.23 Number of Accumulation Units Outstanding at End of Period 1,232,631 477,872 61,545 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $23.10 $23.17 $19.74 (1) AUV at End of Period $19.72 $23.10 $23.17 Number of Accumulation Units Outstanding at End of Period 814,592 410,546 79,161 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.83 Number of Accumulation Units Outstanding at End of Period 136,897 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $21.17 $24.45 $25.20 (1) AUV at End of Period $17.75 $21.17 $24.45 Number of Accumulation Units Outstanding at End of Period 835,107 752,796 428,500 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $27.45 $25.81 $20.18 (1) AUV at End of Period $27.05 $27.45 $25.81 Number of Accumulation Units Outstanding at End of Period 242,782 77,777 12,612 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.63 Number of Accumulation Units Outstanding at End of Period 88,275 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.78 $10.00 (4) AUV at End of Period $5.24 $7.78 Number of Accumulation Units Outstanding at End of Period 157,970 50,783 ING VP MAGNACAP AUV at Beginning of Period $9.34 $10.00 (4) AUV at End of Period $7.07 $9.34 Number of Accumulation Units Outstanding at End of Period 153,013 28,170 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.32 $10.00 (4) AUV at End of Period $4.60 $8.32 Number of Accumulation Units Outstanding at End of Period 563,709 111,946 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.99 $8.74 $10.00 (2) AUV at End of Period $5.17 $6.99 $8.74 Number of Accumulation Units Outstanding at End of Period 322,466 158,546 39,547 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $10.01 $9.94 $10.12 (1) AUV at End of Period $9.73 $10.01 $9.94 Number of Accumulation Units Outstanding at End of Period 1,388,956 581,041 111,021 PROFUND VP BULL AUV at Beginning of Period $8.88 $10.00 (4) AUV at End of Period $6.64 $8.88 Number of Accumulation Units Outstanding at End of Period 127,499 92,175 PROFUND VP SMALL CAP AUV at Beginning of Period $9.41 $10.00 (4) AUV at End of Period $7.18 $9.41 Number of Accumulation Units Outstanding at End of Period 236,885 18,943
FOOTNOTES (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002
2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.80 % FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.79 $9.57 Number of Accumulation Units Outstanding at End of Period 178,752.0 -- ING AIM MID CAP GROWTH AUV at Beginning of Period $14.32 $18.50 $21.37 (1) AUV at End of Period $9.61 $14.32 $18.50 Number of Accumulation Units Outstanding at End of Period 1,196,567 1,447,650 1,203,898 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.30 $16.88 $19.86 (1) AUV at End of Period $9.82 $14.30 $16.88 Number of Accumulation Units Outstanding at End of Period 1,761,535 1,586,391 1,171,869 ING DEVELOPING WORLD AUV at Beginning of Period $6.97 $7.49 $11.58 (1) AUV at End of Period $6.11 $6.97 $7.49 Number of Accumulation Units Outstanding at End of Period 690,414 640,405 549,427 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.80 $18.97 $17.17 (1) AUV at End of Period $14.50 $17.80 $18.97 Number of Accumulation Units Outstanding at End of Period 923,702 706,803 298,983 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.05 $9.87 $10.00 (3) AUV at End of Period $7.17 $9.05 $9.87 Number of Accumulation Units Outstanding at End of Period 1,611,467 815,848 55,360 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.83 $9.93 $10.00 (3) AUV at End of Period $6.99 $8.83 $9.93 Number of Accumulation Units Outstanding at End of Period 2,513,592 1,282,147 148,807 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.28 $8.88 $10.00 (3) AUV at End of Period $6.02 $8.28 $8.88 Number of Accumulation Units Outstanding at End of Period 401,444 319,420 62,575 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.74 $24.27 $28.64 (1) AUV at End of Period $14.41 $20.74 $24.27 Number of Accumulation Units Outstanding at End of Period 1,643,362 1,587,677 981,676 ING JP MORGAN FLEMING INTERNATIONAL EAFE ENHANCED AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.20 Number of Accumulation Units Outstanding at End of Period 51,442 ING JP MORGAN SMALLCAP AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of Period 95,249 ING MARSICO GROWTH AUV at Beginning of Period $14.79 $21.59 $28.72 (1) AUV at End of Period $10.23 $14.79 $21.59 Number of Accumulation Units Outstanding at End of Period 4,731,610 5,132,970 3,791,737 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.92 $41.24 $37.84 (1) AUV at End of Period $15.55 $30.92 $41.24 Number of Accumulation Units Outstanding at End of Period 2,356,960 2,066,676 1,240,675 ING MFS RESEARCH AUV at Beginning of Period $19.84 $25.72 $26.43 (1) AUV at End of Period $14.64 $19.84 $25.72 Number of Accumulation Units Outstanding at End of Period 2,132,959 1,666,295 1,007,294 ING PIMCO CORE BOND AUV at Beginning of Period $11.51 $11.44 $11.23 (1) AUV at End of Period $12.29 $11.51 $11.44 Number of Accumulation Units Outstanding at End of Period 3,457,462 958,057 183,531 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.56 $11.55 $10.00 (1) AUV at End of Period $8.45 $11.56 $11.55 Number of Accumulation Units Outstanding at End of Period 3,308,447 2,722,089 780,053 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.55 $11.22 $10.00 (1) AUV at End of Period $7.98 $10.55 $11.22 Number of Accumulation Units Outstanding at End of Period 1,333,387 820,331 145,735 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.74 $24.77 $20.08 (1) AUV at End of Period $26.38 $26.74 $24.77 Number of Accumulation Units Outstanding at End of Period 3,716,910 1,927,531 400,243 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.64 $22.75 $19.41 (1) AUV at End of Period $19.30 $22.64 $22.75 Number of Accumulation Units Outstanding at End of Period 1,769,554 1,103,377.0 311,484.0 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.82 Number of Accumulation Units Outstanding at End of Period 133,794 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.91 $24.18 $24.96 (1) AUV at End of Period $17.50 $20.91 $24.18 Number of Accumulation Units Outstanding at End of Period 1,678,851 1,489,476 803,307 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.91 $25.34 $19.85 (1) AUV at End of Period $26.48 $26.91 $25.34 Number of Accumulation Units Outstanding at End of Period 639,504 310,014 77,442 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.62 Number of Accumulation Units Outstanding at End of Period 616,917 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.77 $10.00 (4) AUV at End of Period $5.23 $7.77 Number of Accumulation Units Outstanding at End of Period 178,992 74,652 ING VP MAGNACAP AUV at Beginning of Period $9.33 $10.00 (4) AUV at End of Period $7.05 $9.33 Number of Accumulation Units Outstanding at End of Period 190,988 102,246 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.31 $10.00 (4) AUV at End of Period $4.59 $8.31 Number of Accumulation Units Outstanding at End of Period 696,664 222,328 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.98 $8.73 $10.00 (2) AUV at End of Period $5.15 $6.98 $8.73 Number of Accumulation Units Outstanding at End of Period 598,428 468,772 84,578 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.95 $9.90 $10.09 (1) AUV at End of Period $9.66 $9.95 $9.90 Number of Accumulation Units Outstanding at End of Period 3,639,545 1,847,566 631,991 PROFUND VP BULL AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.62 $8.87 Number of Accumulation Units Outstanding at End of Period 475,785 244,571 PROFUND VP SMALL CAP AUV at Beginning of Period $9.40 $10.00 (4) AUV at End of Period $7.16 $9.40 Number of Accumulation Units Outstanding at End of Period 420,431 132,361
FOOTNOTES (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002
2002 2001 2000 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.90 % FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.57 $10.00 (7) AUV at End of Period $7.78 $9.57 Number of Accumulation Units Outstanding at End of Period 250,947 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.23 $18.40 $21.27 (1) AUV at End of Period $9.54 $14.23 $18.40 Number of Accumulation Units Outstanding at End of Period 1,357,778 1,475,163 1,103,423 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.21 $16.80 $19.78 (1) AUV at End of Period $9.76 $14.21 $16.80 Number of Accumulation Units Outstanding at End of Period 1,863,527 1,557,259 874,247 ING DEVELOPING WORLD AUV at Beginning of Period $6.94 $7.47 $11.56 (1) AUV at End of Period $6.08 $6.94 $7.47 Number of Accumulation Units Outstanding at End of Period 847,173 509,513 259,187 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.68 $18.85 $17.08 (1) AUV at End of Period $14.38 $17.68 $18.85 Number of Accumulation Units Outstanding at End of Period 983,703 665,936 162,505 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.04 $9.87 $10.00 (3) AUV at End of Period $7.15 $9.04 $9.87 Number of Accumulation Units Outstanding at End of Period 2,302,131 1,385,134 89,462 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.82 $9.93 $10.00 (3) AUV at End of Period $6.97 $8.82 $9.93 Number of Accumulation Units Outstanding at End of Period 3,186,621 2,016,515 113,353 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.27 $8.88 $10.00 (3) AUV at End of Period $6.01 $8.27 $8.88 Number of Accumulation Units Outstanding at End of Period 520,898 420,371 83,761 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.53 $24.06 $28.41 (1) AUV at End of Period $14.25 $20.53 $24.06 Number of Accumulation Units Outstanding at End of Period 2,091,213 1,748,122 969,120 ING JP MORGAN FLEMING INTERNATIONAL EAFE ENHANCED AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.20 Number of Accumulation Units Outstanding at End of Period 138,594 ING JP MORGAN SMALLCAP AUV at Beginning of Period $10.00 (7) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of Period 155,620 ING MARSICO GROWTH AUV at Beginning of Period $14.71 $21.49 $28.61 (1) AUV at End of Period $10.16 $14.71 $21.49 Number of Accumulation Units Outstanding at End of Period 4,149,074 4,093,894 2,741,325 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.70 $40.98 $37.63 (1) AUV at End of Period $15.42 $30.70 $40.98 Number of Accumulation Units Outstanding at End of Period 2,751,560 2,275,455 1,099,617 ING MFS RESEARCH AUV at Beginning of Period $19.69 $25.56 $26.29 (1) AUV at End of Period $14.51 $19.69 $25.56 Number of Accumulation Units Outstanding at End of Period 2,110,645 1,829,741 807,166 ING PIMCO CORE BOND AUV at Beginning of Period $11.43 $11.37 $11.17 (1) AUV at End of Period $12.19 $11.43 $11.37 Number of Accumulation Units Outstanding at End of Period 5,600,337 1,352,337 101,577 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.54 $11.54 $10.00 (1) AUV at End of Period $8.42 $11.54 $11.54 Number of Accumulation Units Outstanding at End of Period 5,615,264 4,291,401 986,100 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.53 $11.21 $10.00 (1) AUV at End of Period $7.95 $10.53 $11.21 Number of Accumulation Units Outstanding at End of Period 2,079,377 1,766,107 191,223 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.39 $24.47 $19.86 (1) AUV at End of Period $26.01 $26.39 $24.47 Number of Accumulation Units Outstanding at End of Period 3,927,375 1,940,881 183,884 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.35 $22.48 $19.19 (1) AUV at End of Period $19.03 $22.35 $22.48 Number of Accumulation Units Outstanding at End of Period 2,273,204 1,364,874 238,986 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (7) AUV at End of Period $8.82 Number of Accumulation Units Outstanding at End of Period 201,786 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.73 $24.00 $24.80 (1) AUV at End of Period $17.34 $20.73 $24.00 Number of Accumulation Units Outstanding at End of Period 1,920,555 1,546,448 713,282 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.56 $25.04 $19.63 (1) AUV at End of Period $26.11 $26.56 $25.04 Number of Accumulation Units Outstanding at End of Period 768,503 474,135 192,508 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (7) AUV at End of Period $10.61 Number of Accumulation Units Outstanding at End of Period 456,891 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.76 $10.00 (4) AUV at End of Period $5.22 $7.76 Number of Accumulation Units Outstanding at End of Period 355,700 182,159 ING VP MAGNACAP AUV at Beginning of Period $9.32 $10.00 (4) AUV at End of Period $7.04 $9.32 Number of Accumulation Units Outstanding at End of Period 295,511 117,705 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.30 $10.00 (4) AUV at End of Period $4.58 $8.30 Number of Accumulation Units Outstanding at End of Period 1,196,787 253,382 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.96 $8.72 $10.00 (2) AUV at End of Period $5.14 $6.96 $8.72 Number of Accumulation Units Outstanding at End of Period 1,083,707 477,958 68,648 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.91 $9.88 $10.07 (1) AUV at End of Period $9.61 $9.91 $9.88 Number of Accumulation Units Outstanding at End of Period 3,093,339 1,858,684 386,288 PROFUND VP BULL AUV at Beginning of Period $8.87 $10.00 (4) AUV at End of Period $6.61 $8.87 Number of Accumulation Units Outstanding at End of Period 491,042 103,369 PROFUND VP SMALL CAP AUV at Beginning of Period $9.40 $10.00 (4) AUV at End of Period $7.15 $9.40 Number of Accumulation Units Outstanding at End of Period 374,258 47,995.0
FOOTNOTES (1) Fund First Available during February 2000 (2) Fund First Available during May 2000 (3) Fund First Available during October 2000 (4) Fund First Available during May 2001 (5) Fund First Available during November 2001 (6) Fund First Available during December 2001 (7) Fund First Available during May 2002 (8) Fund First Available during September 2002 (9) Fund First Available during December 2002
2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 1.95 % FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.57 (4) AUV at End of Period $7.77 Number of Accumulation Units Outstanding at End of Period 9,459 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.19 $16.41 (1) AUV at End of Period $9.50 $14.19 Number of Accumulation Units Outstanding at End of Period 431 32 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.17 $16.21 (1) AUV at End of Period $14.17 Number of Accumulation Units Outstanding at End of Period -- -- ING DEVELOPING WORLD AUV at Beginning of Period $6.93 $7.35 (1) AUV at End of Period $6.93 Number of Accumulation Units Outstanding at End of Period -- -- ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.61 $19.31 (1) AUV at End of Period $14.32 $17.61 Number of Accumulation Units Outstanding at End of Period 5,517 -- ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.03 $9.47 (1) AUV at End of Period $7.14 $9.03 Number of Accumulation Units Outstanding at End of Period 1,419 -- ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.81 $9.65 (1) AUV at End of Period $6.96 $8.81 Number of Accumulation Units Outstanding at End of Period 5,288 -- ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.27 $8.98 (1) AUV at End of Period $8.27 Number of Accumulation Units Outstanding at End of Period -- -- ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.43 $23.18 (1) AUV at End of Period $20.43 Number of Accumulation Units Outstanding at End of Period -- -- ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of Period 467 ING JP MORGAN SMALLCAP AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.82 Number of Accumulation Units Outstanding at End of Period 2,108 ING MARSICO GROWTH AUV at Beginning of Period $14.66 $19.14 (1) AUV at End of Period $10.13 $14.66 Number of Accumulation Units Outstanding at End of Period 1,800 30 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.58 $39.64 (1) AUV at End of Period $15.35 $30.58 Number of Accumulation Units Outstanding at End of Period 1,308 15 ING MFS RESEARCH AUV at Beginning of Period $19.62 $23.34 (1) AUV at End of Period $14.45 $19.62 Number of Accumulation Units Outstanding at End of Period 1,027 23 ING PIMCO CORE BOND AUV at Beginning of Period $11.39 $10.99 (1) AUV at End of Period $12.13 $11.39 Number of Accumulation Units Outstanding at End of Period 32,108 -- ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.53 $12.25 (1) AUV at End of Period $8.41 $11.53 Number of Accumulation Units Outstanding at End of Period 3,105 778 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.52 $11.49 (1) AUV at End of Period $7.94 $10.52 Number of Accumulation Units Outstanding at End of Period 2,596 847 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.21 $26.07 (1) AUV at End of Period $25.83 $26.21 Number of Accumulation Units Outstanding at End of Period 12,095 -- ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.20 $22.61 (1) AUV at End of Period $18.90 $22.20 Number of Accumulation Units Outstanding at End of Period 193 -- ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.64 $21.93 (1) AUV at End of Period $17.26 $20.64 Number of Accumulation Units Outstanding at End of Period 835 23 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.39 $24.63 (1) AUV at End of Period $25.92 $26.39 Number of Accumulation Units Outstanding at End of Period 696 -- ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (4) AUV at End of Period Number of Accumulation Units Outstanding at End of Period -- ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.76 $10.11 (1) AUV at End of Period $7.76 Number of Accumulation Units Outstanding at End of Period -- -- ING VP MAGNACAP AUV at Beginning of Period $9.32 $10.11 (1) AUV at End of Period $9.32 Number of Accumulation Units Outstanding at End of Period -- -- ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.30 $10.01 (1) AUV at End of Period $4.58 $8.30 Number of Accumulation Units Outstanding at End of Period 345 -- ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.96 $8.35 (1) AUV at End of Period $5.13 $6.96 Number of Accumulation Units Outstanding at End of Period 1,003 -- PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.90 $9.83 (1) AUV at End of Period $9.59 $9.90 Number of Accumulation Units Outstanding at End of Period 4,447 -- PROFUND VP BULL AUV at Beginning of Period $8.86 $10.00 (1) AUV at End of Period $6.61 $8.86 Number of Accumulation Units Outstanding at End of Period 305 -- PROFUND VP SMALL CAP AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $9.39 Number of Accumulation Units Outstanding at End of Period -- --
FOOTNOTES (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002
2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 2.00 % FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.76 Number of Accumulation Units Outstanding at End of Period 19,712 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.14 $16.37 (1) AUV at End of Period $9.47 $14.14 Number of Accumulation Units Outstanding at End of Period 24,834 16,923 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.13 $16.17 (1) AUV at End of Period $9.69 $14.13 Number of Accumulation Units Outstanding at End of Period 56,387 28,214 ING DEVELOPING WORLD AUV at Beginning of Period $6.92 $7.34 (1) AUV at End of Period $6.05 $6.92 Number of Accumulation Units Outstanding at End of Period 40,885 10,204 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.55 $19.25 (1) AUV at End of Period $14.27 $17.55 Number of Accumulation Units Outstanding at End of Period 56,538 18,689 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.02 $9.47 (1) AUV at End of Period $7.13 $9.02 Number of Accumulation Units Outstanding at End of Period 163,816 19,800 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.80 $9.64 (1) AUV at End of Period $6.95 $8.80 Number of Accumulation Units Outstanding at End of Period 184,661 56,788 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.26 $8.97 (1) AUV at End of Period $5.99 $8.26 Number of Accumulation Units Outstanding at End of Period 70,820 16,846 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.33 $23.07 (1) AUV at End of Period $14.10 $20.33 Number of Accumulation Units Outstanding at End of Period 44,959 10,329 ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of Period 8,531 ING JP MORGAN SMALLCAP AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of Period 18,982 ING MARSICO GROWTH AUV at Beginning of Period $14.62 $19.09 (1) AUV at End of Period $10.09 $14.62 Number of Accumulation Units Outstanding at End of Period 149,093 42,687 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.47 $39.51 (1) AUV at End of Period $15.29 $30.47 Number of Accumulation Units Outstanding at End of Period 130,301 29,848 ING MFS RESEARCH AUV at Beginning of Period $19.55 $23.26 (1) AUV at End of Period $14.39 $19.55 Number of Accumulation Units Outstanding at End of Period 131,251 33,529 ING PIMCO CORE BOND AUV at Beginning of Period $11.35 $10.95 (1) AUV at End of Period $12.08 $11.35 Number of Accumulation Units Outstanding at End of Period 529,440 160,007 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.51 $12.24 (1) AUV at End of Period $8.40 $11.51 Number of Accumulation Units Outstanding at End of Period 294,228 77,843 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.51 $11.49 (1) AUV at End of Period $7.93 $10.51 Number of Accumulation Units Outstanding at End of Period 160,814 36,288 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $26.04 $25.91 (1) AUV at End of Period $25.65 $26.04 Number of Accumulation Units Outstanding at End of Period 232,111 43,865 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $22.06 $22.47 (1) AUV at End of Period $18.76 $22.06 Number of Accumulation Units Outstanding at End of Period 151,476 29,036 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.81 Number of Accumulation Units Outstanding at End of Period 14,613 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.56 $21.85 (1) AUV at End of Period $17.17 $20.56 Number of Accumulation Units Outstanding at End of Period 134,276 43,851 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $26.21 $24.47 (1) AUV at End of Period $25.74 $26.21 Number of Accumulation Units Outstanding at End of Period 33,005 2,487 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.60 Number of Accumulation Units Outstanding at End of Period 16,611 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.76 $10.11 (1) AUV at End of Period $5.21 $7.76 Number of Accumulation Units Outstanding at End of Period 34,246 3,796 ING VP MAGNACAP AUV at Beginning of Period $9.32 $10.11 (1) AUV at End of Period $7.03 $9.32 Number of Accumulation Units Outstanding at End of Period 31,709 6,879 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.30 $10.01 (1) AUV at End of Period $4.57 $8.30 Number of Accumulation Units Outstanding at End of Period 117,676 25,433 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.95 $8.34 (1) AUV at End of Period $5.12 $6.95 Number of Accumulation Units Outstanding at End of Period 100,549 15,369 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.88 $9.82 (1) AUV at End of Period $9.57 $9.88 Number of Accumulation Units Outstanding at End of Period 272,348 42,156 PROFUND VP BULL AUV at Beginning of Period $8.86 $10.00 (1) AUV at End of Period $6.60 $8.86 Number of Accumulation Units Outstanding at End of Period 16,669 1,491 PROFUND VP SMALL CAP AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $7.14 $9.39 Number of Accumulation Units Outstanding at End of Period 59,953 6,233
FOOTNOTES (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002
2002 2001 SEPARATE ACCOUNT ANNUAL CHARGES OF 2.10 % FIDELITY(R) VIP EQUITY--INCOME AUV at Beginning of Period $9.56 (4) AUV at End of Period $7.75 Number of Accumulation Units Outstanding at End of Period 54,904 ING AIM MID CAP GROWTH AUV at Beginning of Period $14.05 $16.27 (1) AUV at End of Period $9.40 $14.05 Number of Accumulation Units Outstanding at End of Period 63,802 21,990 ING ALLIANCE MID CAP GROWTH AUV at Beginning of Period $14.05 $16.08 (1) AUV at End of Period $9.62 $14.05 Number of Accumulation Units Outstanding at End of Period 184,179 63,924 ING DEVELOPING WORLD AUV at Beginning of Period $6.89 $7.32 (1) AUV at End of Period $6.02 $6.89 Number of Accumulation Units Outstanding at End of Period 87,622 52,358 ING EAGLE ASSET VALUE EQUITY AUV at Beginning of Period $17.43 $19.13 (1) AUV at End of Period $14.15 $17.43 Number of Accumulation Units Outstanding at End of Period 131,099 34,231 ING FMRSM DIVERSIFIED MID--CAP AUV at Beginning of Period $9.01 $9.46 (1) AUV at End of Period $7.12 $9.01 Number of Accumulation Units Outstanding at End of Period 492,026 76,525 ING JANUS GROWTH AND INCOME AUV at Beginning of Period $8.79 $9.64 (1) AUV at End of Period $6.94 $8.79 Number of Accumulation Units Outstanding at End of Period 584,691 164,770 ING JANUS SPECIAL EQUITY AUV at Beginning of Period $8.25 $8.97 (1) AUV at End of Period $5.98 $8.25 Number of Accumulation Units Outstanding at End of Period 96,355 38,065 ING JENNISON EQUITY OPPORTUNITIES AUV at Beginning of Period $20.13 $22.86 (1) AUV at End of Period $13.94 $20.13 Number of Accumulation Units Outstanding at End of Period 132,556 41,070 ING JP MORGAN FLEMING INTERNATIONAL ENHANCED EAFE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.19 Number of Accumulation Units Outstanding at End of Period 6,369 ING JP MORGAN SMALLCAP AUV at Beginning of Period $10.00 (4) AUV at End of Period $7.81 Number of Accumulation Units Outstanding at End of Period 37,674 ING MARSICO GROWTH AUV at Beginning of Period $14.53 $18.99 (1) AUV at End of Period $10.02 $14.53 Number of Accumulation Units Outstanding at End of Period 311,442 126,140 ING MFS MID CAP GROWTH AUV at Beginning of Period $30.25 $39.25 (1) AUV at End of Period $15.16 $30.25 Number of Accumulation Units Outstanding at End of Period 309,801 93,233 ING MFS RESEARCH AUV at Beginning of Period $19.40 $23.11 (1) AUV at End of Period $14.27 $19.40 Number of Accumulation Units Outstanding at End of Period 215,283 85,348 ING PIMCO CORE BOND AUV at Beginning of Period $11.26 $10.88 (1) AUV at End of Period $11.98 $11.26 Number of Accumulation Units Outstanding at End of Period 836,451 221,684 ING SALOMON BROTHERS ALL CAP AUV at Beginning of Period $11.49 $12.23 (1) AUV at End of Period $8.37 $11.49 Number of Accumulation Units Outstanding at End of Period 892,250 225,937 ING SALOMON BROTHERS INVESTORS AUV at Beginning of Period $10.48 $11.47 (1) AUV at End of Period $7.91 $10.48 Number of Accumulation Units Outstanding at End of Period 294,205 136,482 ING T. ROWE PRICE CAPITAL APPRECIATION AUV at Beginning of Period $25.70 $25.59 (1) AUV at End of Period $25.28 $25.70 Number of Accumulation Units Outstanding at End of Period 442,657 92,605 ING T. ROWE PRICE EQUITY INCOME AUV at Beginning of Period $21.77 $22.19 (1) AUV at End of Period $18.50 $21.77 Number of Accumulation Units Outstanding at End of Period 425,112 107,272 ING VAN KAMPEN GLOBAL FRANCHISE AUV at Beginning of Period $10.00 (4) AUV at End of Period $8.80 Number of Accumulation Units Outstanding at End of Period 40,258 ING VAN KAMPEN GROWTH & INCOME AUV at Beginning of Period $20.39 $21.68 (1) AUV at End of Period $17.01 $20.39 Number of Accumulation Units Outstanding at End of Period 180,352 51,722 ING VAN KAMPEN REAL ESTATE AUV at Beginning of Period $25.87 $24.17 (1) AUV at End of Period $25.38 $25.87 Number of Accumulation Units Outstanding at End of Period 77,757 7,350 ING VP BOND PORTFOLIO AUV at Beginning of Period $10.00 (4) AUV at End of Period $10.59 Number of Accumulation Units Outstanding at End of Period 20,543 ING VP GROWTH OPPORTUNITIES AUV at Beginning of Period $7.75 $10.11 (1) AUV at End of Period $5.20 $7.75 Number of Accumulation Units Outstanding at End of Period 68,491 6,269 ING VP MAGNACAP AUV at Beginning of Period $9.31 $10.11 (1) AUV at End of Period $7.02 $9.31 Number of Accumulation Units Outstanding at End of Period 41,229 10,474 ING VP SMALLCAP OPPORTUNITIES AUV at Beginning of Period $8.29 $10.01 (1) AUV at End of Period $4.57 $8.29 Number of Accumulation Units Outstanding at End of Period 249,714 45,115 ING VP WORLDWIDE GROWTH AUV at Beginning of Period $6.94 $8.34 (1) AUV at End of Period $5.11 $6.94 Number of Accumulation Units Outstanding at End of Period 138,853 46,282 PIMCO HIGH YIELD PORTFOLIO AUV at Beginning of Period $9.84 $9.79 (1) AUV at End of Period $9.52 $9.84 Number of Accumulation Units Outstanding at End of Period 423,832 118,177 PROFUND VP BULL AUV at Beginning of Period $8.85 $10.00 (1) AUV at End of Period $6.59 $8.85 Number of Accumulation Units Outstanding at End of Period 23,783 1,814 PROFUND VP SMALL CAP AUV at Beginning of Period $9.39 $10.00 (1) AUV at End of Period $7.13 $9.39 Number of Accumulation Units Outstanding at End of Period 68,579 12,110
FOOTNOTES (1) Fund First Available during May 2001 (2) Fund First Available during November 2001 (3) Fund First Available during December 2001 (4) Fund First Available during May 2002 - -------------------------------------------------------------------------------- APPENDIX B - -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS During the accumulation phase, you may allocate your premium payments and contract value to any of the investment portfolios available under this Contract. They are listed in this appendix. You bear the entire investment risk for amounts you allocate to any investment portfolio, and you may lose your principal. The investment results of the mutual funds (funds) are likely to differ significantly and there is no assurance that any of the funds will achieve their respective investment objectives. Shares of the funds will rise and fall in value and you could lose money by investing in the funds. Shares of the funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, the Federal Deposit Insurance Corporation or any other government agency. Except as noted, all funds are diversified, as defined under the Investment Company Act of 1940. Please refer to the fund prospectuses for additional information. Fund prospectuses may be obtained free of charge, from our Customer Service Center at the address and telephone number listed in the prospectus, by accessing the SEC's web site or by contacting the SEC Public Reference Room. Certain funds offered under the contracts have investment objectives and policies similar to other funds managed by the fund's investment adviser. The investment results of a fund may be higher or lower than those of other funds managed by the same adviser. There is no assurance and no representation is made that the investment results of any fund will be comparable to those of another fund managed by the same investment adviser.
FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING INVESTORS TRUST - ----------------------------------------------------------------- ------------------------------------------------------------ ING AIM MID-CAP GROWTH PORTFOLIO (Class S) Seeks capital appreciation. The Portfolio seeks to meet INVESTMENT ADVISER: Directed Services, Inc. its objective by investing, normally, at least 80% of its INVESTMENT SUBADVISER: A I M Capital Management, Inc. assets in equity securities of mid-capitalization companies. - ----------------------------------------------------------------- ------------------------------------------------------------ ING ALLIANCE MID-CAP GROWTH PORTFOLIO Seeks long-term total return. The Portfolio invests (Class S) primarily in common stocks of middle capitalization INVESTMENT ADVISER: Directed Services, Inc. companies. The Portfolio normally invests substantially INVESTMENT SUBADVISER: Alliance Capital Management, L.P. all of its assets in high-quality common stocks that Alliance expects to increase in value. - ----------------------------------------------------------------- ------------------------------------------------------------ ING DEVELOPING WORLD PORTFOLIO (Class S) Seeks capital appreciation. The Portfolio invests INVESTMENT ADVISER: Directed Services, Inc. primarily in the equity securities of companies in INVESTMENT SUBADVISER: Baring International Investment "emerging market countries." The Portfolio normally Limited invests in at least six emerging market countries with no more than 35% of its assets in any one country, measured at the time of investment. - ----------------------------------------------------------------- ------------------------------------------------------------ ING EAGLE ASSET VALUE EQUITY PORTFOLIO Seeks capital appreciation. Dividend income is a secondary (Class S) objective. The Portfolio normally invests at least 80% of INVESTMENT ADVISER: Directed Services, Inc. its assets in equity securities of domestic and foreign INVESTMENT SUBADVISER: Eagle Asset Management, Inc. issuers that meet quantitative standards relating to financial soundness and high intrinsic value relative to price. - ----------------------------------------------------------------- ------------------------------------------------------------ ING FMRSM DIVERSIFIED MID-CAP PORTFOLIO Seeks long-term growth of capital. The Portfolio Manager (Class S) normally invests the Portfolio's assets primarily in INVESTMENT ADVISER: Directed Services, Inc. common stocks. The Portfolio Manager normally invests at INVESTMENT SUBADVISER: Fidelity Management & Research least 80% of the Portfolio's assets in securities of Co. companies with medium market capitalizations. - ----------------------------------------------------------------- ------------------------------------------------------------ ING JANUS GROWTH AND INCOME PORTFOLIO Seeks long-term capital growth and current income. The (Class S) Portfolio normally emphasizes investments in common INVESTMENT ADVISER: Directed Services, Inc. stocks. It will normally invest up to 75% of its assets INVESTMENT SUBADVISER: Janus Capital Management, LLC in equity securities selected primarily for their growth potential, and at least 25% of its assets in securities the Portfolio Manager believes have income potential. Because of this investment strategy, the Portfolio is not designed for investors who need consistent income. - ----------------------------------------------------------------- ------------------------------------------------------------ ING JANUS SPECIAL EQUITY PORTFOLIO (Class S) A nondiversified Portfolio that seeks capital INVESTMENT ADVISER: Directed Services, Inc. appreciation. The Portfolio invests, under normal INVESTMENT SUBADVISER: Janus Capital Management, LLC circumstances, at least 80% of its net assets (plus borrowings for investment purposes) in equity securities with the potential for long-term growth of capital. - ----------------------------------------------------------------- ------------------------------------------------------------ ING JENNISON EQUITY OPPORTUNITIES PORTFOLIO Seeks long-term capital growth. The Portfolio normally (Class S) invests at least 80% of its net assets (plus any INVESTMENT ADVISER: Directed Services, Inc. borrowings for investment purposes) in attractively valued INVESTMENT SUBADVISER: Jennison Associates, LLC equity securities of companies with current or emerging earnings growth the Portfolio Manager believes to be not fully appreciated or recognized by the market. - ----------------------------------------------------------------- ------------------------------------------------------------ ING JPMORGAN SMALL CAP EQUITY PORTFOLIO (Class S) A nondiversified Portfolio that seeks capital growth over INVESTMENT ADVISER: Directed Services, Inc. the long term. Under normal market conditions, the INVESTMENT SUBADVISER: J.P. Morgan Investment Portfolio invests at least 80% of its total assets in Management, Inc. equity securities of small-cap companies. - ----------------------------------------------------------------- ------------------------------------------------------------ ING JULIUS BAER FOREIGN PORTFOLIO (Class S) A nondiversified Portfolio that seeks total return from INVESTMENT ADVISER: Directed Services, Inc. long-term capital growth and income. Under normal INVESTMENT SUBADVISER: Julius Baer Investment conditions, the Portfolio will invest at least 80% of its Management, Inc. total assets in a broad portfolio of equity securities of established foreign companies of various sizes, including foreign subsidiaries of U.S. companies, based in countries that are represented in the Morgan Stanley Capital International, Europe, Australia and Far East Index (the "EAFE Index"). - ----------------------------------------------------------------- ------------------------------------------------------------ ING MARSICO GROWTH PORTFOLIO (Class S) Seeks capital appreciation. The Portfolio invests INVESTMENT ADVISER: Directed Services, Inc. primarily in equity securities selected for their growth INVESTMENT SUBADVISER: Marsico Capital Management, LLC potential. The Portfolio may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. - ----------------------------------------------------------------- ------------------------------------------------------------ ING MFS MID-CAP GROWTH PORTFOLIO (Class S) A nondiversified Portfolio that seeks long-term growth of INVESTMENT ADVISER: Directed Services, Inc. capital. The Portfolio normally invests at least 80% of INVESTMENT SUBADVISER: Massachusetts Financial its net assets in common stocks and related securities Services Company (such as preferred stocks, convertible securities and depositary receipts) of companies with medium market capitalizations (or "mid-cap companies") which the Portfolio Manager believes have above-average growth potential. - ----------------------------------------------------------------- ------------------------------------------------------------ ING MFS RESEARCH PORTFOLIO (Class S) Seeks long-term growth of capital and future income. The INVESTMENT ADVISER: Directed Services, Inc. Portfolio normally invests at least 80% of its net assets INVESTMENT SUBADVISER: Massachusetts Financial in common stocks and related securities (such as preferred Services Company stocks, convertible securities and depositary receipts). The Portfolio focuses on companies that the Portfolio Manager believes have favorable prospects for long-term growth, attractive valuations based on current and expected earnings or cash flow, dominant or growing market share and superior management. - ----------------------------------------------------------------- ------------------------------------------------------------ ING PIMCO CORE BOND PORTFOLIO (Class S) Seeks maximum total return, consistent with preservation INVESTMENT ADVISER: Directed Services, Inc. of capital and prudent investment management. The INVESTMENT SUBADVISER: Pacific Investment Portfolio is diversified and seeks to achieve its Management Company, LLC investment objective by investing under normal circumstances at least 80% of its net assets (plus borrowings for investment purposes) in a diversified portfolio of fixed income instruments of varying maturities. - ----------------------------------------------------------------- ------------------------------------------------------------ ING SALOMON BROTHERS ALL CAP PORTFOLIO A nondiversified Portfolio that seeks capital appreciation (Class S) through investment in securities which the Subadviser INVESTMENT ADVISER: Directed Services, Inc. believes have above-average capital appreciation INVESTMENT SUBADVISER: Salomon Brothers Asset Management potential. The Portfolio invests primarily in common Inc. stocks and common stock equivalents, such as preferred stocks and securities convertible into common stocks, of companies the Portfolio Manager believes are undervalued in the marketplace. - ----------------------------------------------------------------- ------------------------------------------------------------ ING SALOMON BROTHERS INVESTORS PORTFOLIO Seeks long-term growth of capital. Secondarily seeks (Class S) current income. The Portfolio invests primarily in equity INVESTMENT ADVISER: Directed Services, Inc. securities of U.S. companies. The Portfolio may also INVESTMENT SUBADVISER: Salomon Brothers Asset Management invest in other equity securities. To a lesser degree, Inc. the Portfolio invests in income producing securities such as debt securities. - ----------------------------------------------------------------- ------------------------------------------------------------ ING T. ROWE PRICE CAPITAL APPRECIATION PORTFOLIO (Class S) Seeks, over the long-term, a high total investment return, INVESTMENT ADVISER: Directed Services, Inc. consistent with the preservation of capital and prudent INVESTMENT SUBADVISER: T. Rowe Price Associates, Inc. investment risk. The Portfolio pursues an active asset allocation strategy whereby investments are allocated among three asset classes - equity securities, debt securities and money market instruments. - ----------------------------------------------------------------- ------------------------------------------------------------ ING T. ROWE PRICE EQUITY INCOME PORTFOLIO Seeks substantial dividend income as well as long-term (Class S) growth of capital. The Portfolio normally invests at least INVESTMENT ADVISER: Directed Services, Inc. 80% of its assets in common stocks, with 65% in the common INVESTMENT SUBADVISER: T. Rowe Price Associates, Inc. stocks of well-established companies paying above-average dividends. The Portfolio may also invest in convertible securities, warrants and preferred stocks. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VAN KAMPEN GLOBAL FRANCHISE PORTFOLIO A nondiversified Portfolio that seeks long-term capital (Class S) appreciation. The Portfolio Manager seeks long-term INVESTMENT ADVISER: Directed Services, Inc. capital appreciation by investing primarily in equity INVESTMENT SUBADVISER: Van Kampen securities of issuers located throughout the world that it believes have, among other things, resilient business franchises and growth potential. The Portfolio may invest of in the securities of companies of any size. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VAN KAMPEN GROWTH AND INCOME PORTFOLIO (Class S) Seeks long-term growth of capital and income. Under normal INVESTMENT ADVISER: Directed Services, Inc. market conditions, the Portfolio Manager seeks to achieve INVESTMENT SUBADVISER: Van Kampen the Portfolio's investment objective by investing primarily in what it believes to be income-producing equity securities, including common stocks and convertible securities; although investments are also made in non-convertible preferred stocks and debt securities rated "investment grade," which are securities rated within the four highest grades assigned by Standard & Poor's ("S&P") or by Moody's Investors Service, Inc. ("Moody's"). - ----------------------------------------------------------------- ------------------------------------------------------------ ING VAN KAMPEN REAL ESTATE PORTFOLIO A nondiversified Portfolio that seeks capital (Class S) appreciation. Secondarily seeks current income. The INVESTMENT ADVISER: Directed Services, Inc. Portfolio invests at least 80% of its assets in equity INVESTMENT SUBADVISER: Van Kampen securities of companies in the U.S. real estate industry that are listed on national exchanges or the National Association of Securities Dealers Automated Quotation System ("NASDAQ"). - ----------------------------------------------------------------- ------------------------------------------------------------ ING PARTNERS, INC. - ----------------------------------------------------------------- ------------------------------------------------------------ ING JPMORGAN FLEMING INTERNATIONAL PORTFOLIO (Service Class) Seeks long-term growth of capital. Invests primarily (at INVESTMENT ADVISER: ING Life Insurance and Annuity least 65% of total assets) in the equity securities of Company foreign companies that the subadviser believes have high INVESTMENT SUBADVISER: J.P. Morgan Fleming Asset growth potential. Will normally invest in securities of Management, (London) Ltd. at least three different countries other than the U.S. and will invest in both developed and developing markets. - ----------------------------------------------------------------- ------------------------------------------------------------ ING SALOMON BROTHERS AGGRESSIVE GROWTH PORTFOLIO Seeks long-term growth of capital. Invests primarily (at (Service Class) least 80% of net assets under normal circumstances) in INVESTMENT ADVISER: ING Life Insurance and Annuity common stocks and related securities, such as preferred Company stocks, convertible securities and depositary receipts, of INVESTMENT SUBADVISER: Salomon Brothers Asset emerging growth companies. Management, Inc. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VARIABLE INSURANCE TRUST - ----------------------------------------------------------------- ------------------------------------------------------------ ING VP WORLDWIDE GROWTH PORTFOLIO Seeks long-term capital appreciation. A nondiversified INVESTMENT ADVISER: ING Investments, LLC Portfolio that under normal conditions, invests at least 65% of net assets in equity securities of issuers located in at least three countries, one of which may be the U.S. Generally invests at least 75% of total assets in common and preferred stocks, warrants and convertible securities. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VARIABLE PORTFOLIOS, INC. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VP BOND PORTFOLIO (Class S) Seeks to maximize total return as is consistent with INVESTMENT ADVISER: ING Investments, LLC reasonable risk, through investment in a diversified INVESTMENT SUBADVISER: Aeltus Investment portfolio consisting of debt securities. Under normal Management, Inc. market conditions, invests at least 80% of net assets in high-grade corporate bonds, mortgage-related and other asset-backed securities, and securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The Portfolio may invest up to 15% of total assets in high-yield instruments and up to 25% of total assets in foreign debt securities. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VP INDEX PLUS LARGECAP PORTFOLIO Seeks to outperform the total return performance of the (Class S) Standard & Poor's 500 Composite Index (S&P 500), while INVESTMENT ADVISER: ING Investments, LLC maintaining a market level of risk. Invests at least 80% INVESTMENT SUBADVISER: Aeltus Investment of net assets in stocks included in the S&P 500. The Management, Inc. subadviser's objective is to overweight those stocks in the S&P 500 that they believe will outperform the index and underweight or avoid those stocks in the S&P 500 that they believe will underperform the index. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VARIABLE PRODUCTS TRUST - ----------------------------------------------------------------- ------------------------------------------------------------ ING VP GROWTH OPPORTUNITIES PORTFOLIO Seeks long-term growth of capital. Invests primarily in (Service Class) common stock of U.S. companies that the portfolio managers INVESTMENT ADVISER: ING Investments, LLC feel have above average prospects for growth. Under normal market conditions, invests at least 65% of total assets in securities purchased on the basis of the potential for capital appreciation. These securities may be from large-cap, mid-cap or small-cap companies. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VP MAGNACAP PORTFOLIO (Service Class) Seeks growth of capital, with dividend income as a INVESTMENT ADVISER: ING Investments, LLC secondary consideration. Normally invests at least 80% of assets in common stocks of large companies, which are those included in the 500 largest U.S. companies, as measured by total revenues, net assets, cash flow or earnings, or the 1,000 largest companies as measured by equity market capitalization. - ----------------------------------------------------------------- ------------------------------------------------------------ ING VP SMALLCAP OPPORTUNITIES PORTFOLIO Seeks long-term capital appreciation. Normally invests at (Service Class) least 80% of assets in the common stock of smaller, INVESTMENT ADVISER: ING Investments, LLC lesser-known U.S. companies that are believed to have above average prospects for growth. For this Portfolio, smaller companies are those with market capitalizations that fall within the range of companies in the Russell 2000 Index. - ------------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VARIABLE INSURANCE PRODUCTS PORTFOLIO - ----------------------------------------------------------------- ------------------------------------------------------------ FIDELITY(R)VIP EQUITY-INCOME PORTFOLIO (Service Seeks reasonable income. Also considers the potential for Class 2) capital appreciation. Seeks to achieve a yield which INVESTMENT ADVISER: Fidelity Management & Research exceeds the composite yield on the securities comprising Co. the Standard & Poor's 500 Index. Normally invests at least INVESTMENT SUBADVISER: FMR Co., Inc. 80% of total assets in income-producing equity securities (which tends to lead to investments in large cap "value" stocks). - ----------------------------------------------------------------- ------------------------------------------------------------ PIMCO VARIABLE INSURANCE TRUST - ----------------------------------------------------------------- ------------------------------------------------------------ ING PIMCO HIGH YIELD PORTFOLIO (Class S) Seeks maximum total return, consistent with preservation INVESTMENT ADVISER: Directed Services, Inc. of capital and prudent investment management. INVESTMENT SUBADVISER: Pacific Investment Management Company, LLC - ----------------------------------------------------------------- ------------------------------------------------------------ PRO FUNDS VP - ----------------------------------------------------------------- ------------------------------------------------------------ PROFUND VP BULL Seeks daily investment results, before fees and expenses INVESTMENT ADVISER: ProFund Advisors, LLC that correspond to the daily performance of the S&P 500 Index. - ----------------------------------------------------------------- ------------------------------------------------------------ PROFUND VP SMALL-CAP Seeks daily investment results, before fees and expenses INVESTMENT ADVISER: ProFund Advisors, LLC that correspond to the daily performance of the Russell 2000 Index. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VARIABLE TRUST - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT ASSET ALLOCATION FUND Seeks long-term total return, consistent with reasonable INVESTMENT ADVISER: Wells Fargo Funds Management, risk. Invests in equity and fixed-income securities in LLC varying proportions, with an emphasis on equity securities. The Fund's "neutral" target allocation is 60% equity securities and 40% fixed-income securities. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT EQUITY INCOME FUND Seeks long-term capital appreciation and above-average INVESTMENT ADVISER: Wells Fargo Funds Management, dividend income by investing primarily in the common LLC stocks of large U.S. companies with strong return potential based on current market valuations. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT EQUITY VALUE FUND Seeks long-term capital appreciation and above-average INVESTMENT ADVISER: Wells Fargo Funds Management, dividend income by investing primarily in equity LLC securities of large U.S. companies with strong return potential based on current market valuations. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT LARGE COMPANY GROWTH FUND Seeks long-term capital appreciation by investing INVESTMENT ADVISER: Wells Fargo Funds Management, primarily in large, domestic companies that the adviser LLC believes have superior growth potential by seeking issuers whose stocks the investment adviser believes are attractively valued, with fundamental characteristics above the market average and that support earnings growth capability. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT MONEY MARKET FUND Seeks high current income, while preserving capital and INVESTMENT ADVISER: Wells Fargo Funds Management, liquidity by investing in U.S. dollar-denominated, high LLC quality, short-term money market instruments including banker's acceptances, bank notes, certificates of deposit, commercial paper and repurchase agreements. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT SMALL CAP GROWTH FUND Seeks long-term capital appreciation by investing in a INVESTMENT ADVISER: Wells Fargo Funds Management, diversified portfolio of common stocks of U.S. and foreign LLC companies that the investment adviser believes have above-average growth potential, or that may be involved in new or innovative products, services and processes, focusing on small-capitalization stocks. - ----------------------------------------------------------------- ------------------------------------------------------------ WELLS FARGO VT TOTAL RETURN BOND FUND Seeks total return of income and capital appreciation by INVESTMENT ADVISER: Wells Fargo Funds Management, investing in a broad range of investment-grade debt LLC securities, including U.S. Government obligations, corporate bonds, asset-backed securities and money-market instruments. - ----------------------------------------------------------------- ------------------------------------------------------------
- -------------------------------------------------------------------------------- APPENDIX C - -------------------------------------------------------------------------------- FIXED ACCOUNT II Fixed Account II ("Fixed Account") is an optional fixed interest allocation offered during the accumulation phase of your variable annuity contract between you and ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we" or "our"). The Fixed Account, which is a segregated asset account of ING USA, provides a means for you to invest on a tax-deferred basis and earn a guaranteed interest for guaranteed interest periods (Fixed Interest Allocation(s)). We will credit your Fixed Interest Allocation(s) with a fixed rate of interest. We currently offer Fixed Interest Allocations with guaranteed interest periods of 5, 7 and 10 years. In addition, we may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively in connection with our dollar cost averaging program. We may offer additional guaranteed interest periods in some or all states, may not offer all guaranteed interest periods on all contracts or in all states and the rates for a given guaranteed interest period may vary among contracts. We set the interest rates periodically. We may credit a different interest rate for each interest period. The interest you earn in the Fixed Account as well as your principal is guaranteed by ING USA, as long as you do not take your money out before the maturity date for the applicable interest period. If you take your money out from a Fixed Interest Allocation more than 30 days before the applicable maturity date, we will apply a market value adjustment ("Market Value Adjustment"). A Market Value Adjustment could increase or decrease your contract value and/or the amount you take out. A surrender charge may also apply to withdrawals from your contract. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. For contracts sold in some states, not all Fixed Interest Allocations are available. You have a right to return a contract for a refund as described in the prospectus. THE FIXED ACCOUNT You may allocate premium payments and transfer your Contract value to the guaranteed interest periods of the Fixed Account during the accumulation period as described in the prospectus. Every time you allocate money to the Fixed Account, we set up a Fixed Interest Allocation for the guaranteed interest period you select. We will credit your Fixed Interest Allocation with a guaranteed interest rate for the interest period you select, so long as you do not withdraw money from that Fixed Interest Allocation before the end of the guaranteed interest period. Each guaranteed interest period ends on its maturity date, which is the last day of the month in which the interest period is scheduled to expire. Your Contract value in the Fixed Account is the sum of your Fixed Interest Allocations and the interest credited as adjusted for any withdrawals, transfers or other charges we may impose, including any Market Value Adjustment. Your Fixed Interest Allocation will be credited with the guaranteed interest rate in effect for the guaranteed interest period you selected when we receive and accept your premium or reallocation of Contract value. We will credit interest daily at a rate that yields the quoted guaranteed interest rate. If you surrender, withdraw, transfer or annuitize your investment in a Fixed Interest Allocation more than 30 days before the end of the guaranteed interest period, we will apply a Market Value Adjustment to the transaction. A Market Value Adjustment could increase or decrease the amount you surrender, withdraw, transfer or annuitize, depending on current interest rates at the time of the transaction. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. GUARANTEED INTEREST RATES Each Fixed Interest Allocation will have an interest rate that is guaranteed as long as you do not take your money out until its maturity date. We do not have a specific formula for establishing the guaranteed interest rates for the different guaranteed interest periods. We determine guaranteed interest rates at our sole discretion. We cannot predict the level of future interest rates but no Fixed Interest Allocation will ever have a guaranteed interest rate declared of less than 3% per year. For more information see the prospectus for Fixed Account II TRANSFERS FROM A FIXED INTEREST ALLOCATION You may transfer your Contract value in a Fixed Interest Allocation to one or more new Fixed Interest Allocations with new guaranteed interest periods, or to any of the subaccounts of ING USA's Separate Account B as described in the prospectus on the maturity date of a guaranteed interest period. The minimum amount that you can transfer to or from any Fixed Interest Allocation is $100. Transfers from a Fixed Interest Allocation may be subject to a Market Value Adjustment. If you have a special Fixed Interest Allocation that was offered exclusively with our dollar cost averaging program, cancelling dollar cost averaging will cause a transfer of the entire Contract value in such Fixed Interest Allocation to the Wells Fargo VT Money Market subaccount, and such a transfer will be subject to a Market Value Adjustment. Please be aware that the benefit we pay under certain optional benefit riders will be adjusted by any transfers you make to and from the Fixed Interest Allocations during specified periods while the rider is in effect. See "Optional Riders" in the prospectus. WITHDRAWALS FROM A FIXED INTEREST ALLOCATION During the accumulation phase, you may withdraw a portion of your Contract value in any Fixed Interest Allocation. You may make systematic withdrawals of only the interest earned during the prior month, quarter or year, depending on the frequency chosen, from a Fixed Interest Allocation under our systematic withdrawal option. A withdrawal from a Fixed Interest Allocation may be subject to a Market Value Adjustment and a contract surrender charge. Be aware that withdrawals may have federal income tax consequences, including a 10% penalty tax, as well as state income tax consequences. Please be aware that the benefit we pay under any of the optional benefit riders will be reduced by any withdrawals you made from the Fixed Interest Allocations during the period while the rider is in effect. See "Optional Riders" in the prospectus. MARKET VALUE ADJUSTMENT A Market Value Adjustment may decrease, increase or have no effect on your Contract value. We will apply a Market Value Adjustment (i) whenever you withdraw or transfer money from a Fixed Interest Allocation (unless made within 30 days before the maturity date of the applicable guaranteed interest period, or under the systematic withdrawal or dollar cost averaging program) and (ii) if on the annuity start date a guaranteed interest period for any Fixed Interest Allocation does not end on or within 30 days of the annuity start date. A Market Value Adjustment may be positive, negative or result in no change. In general, if interest rates are rising, you bear the risk that any Market Value Adjustment will likely be negative and reduce your Contract value. On the other hand, if interest rates are falling, it is more likely that you will receive a positive Market Value Adjustment that increases your Contract value. In the event of a full surrender, transfer or annuitization from a Fixed Interest Allocation, we will add or subtract any Market Value Adjustment from the amount surrendered, transferred or annuitized. In the event of a partial withdrawal, transfer or annuitization, we will add or subtract any Market Value Adjustment from the total amount withdrawn, transferred or annuitized in order to provide the amount requested. If a negative Market Value Adjustment exceeds your Contract value in the Fixed Interest Allocation, we will consider your request to be a full surrender, transfer or annuitization of the Fixed Interest Allocation. CONTRACT VALUE IN THE FIXED INTEREST ALLOCATIONS On the contract date, the Contract value in any Fixed Interest Allocation in which you are invested is equal to the portion of the initial premium paid and designated for allocation to the Fixed Interest Allocation. On each business day after the contract date, we calculate the amount of Contract value in each Fixed Interest Allocation as follows: (1) We take the Contract value in the Fixed Interest Allocation at the end of the preceding business day. (2) We credit a daily rate of interest on (1) at the guaranteed rate since the preceding business day. (3) We add (1) and (4) We subtract from (3) any transfers from that Fixed Interest Allocation. (5) We subtract from (4) any withdrawals, and then subtract any contract fees (including any rider charges) and premium taxes. Additional premium payments and transfers allocated to the Fixed Account will be placed in a new Fixed Interest Allocation. The Contract value on the date of allocation will be the amount allocated. Several examples which illustrate how the Market Value Adjustment works are included in the prospectus for the Fixed Account CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value of amounts allocated to the Fixed Account will fluctuate daily based on the interest credited to Fixed Interest Allocations, any Market Value Adjustment, and any surrender charge. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your Contract value, then we adjust for any Market Value Adjustment, and then we deduct any surrender charge, any charge for premium taxes, the annual contract administrative fee (unless waived), and any optional benefit rider charge, and any other charges incurred but not yet deducted. DOLLAR COST AVERAGING FROM FIXED INTEREST ALLOCATIONS You may elect to participate in our dollar cost averaging program if you have at least $1,200 of Contract value in Fixed Account Interest Allocations with a guaranteed interest period of 1 year or less. The Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other Fixed Interest Allocations or contract investment portfolio subaccounts selected by you. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. You elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. You may change the transfer amount once each contract year. Transfers from a Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. We may in the future offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program or otherwise modify, suspend or terminate this program. Of course, such change will not affect any dollar cost averaging programs in operation at the time. SUSPENSION OF PAYMENTS We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. MORE INFORMATION See the prospectus for Fixed Account II. - -------------------------------------------------------------------------------- APPENDIX D - -------------------------------------------------------------------------------- FIXED INTEREST DIVISION A Fixed Interest Division option is available through the group and individual deferred variable annuity contracts offered by ING USA Annuity and Life Insurance Company. The Fixed Interest Division is part of the ING USA General Account. Interests in the Fixed Interest Division have not been registered under the Securities Act of 1933, and neither the Fixed Interest Division nor the General Account are registered under the Investment Company Act of 1940. Interests in the Fixed Interest Division are offered in certain states through an Offering Brochure, dated May 1, 2003. The Fixed Interest Division is different from the Fixed Account which is described in the prospectus but which is not available in your state. If you are unsure whether the Fixed Account is available in your state, please contact our Customer Service Center at (800) 366-0066. When reading through the Prospectus, the Fixed Interest Division should be counted among the various investment options available for the allocation of your premiums, in lieu of the Fixed Account. The Fixed Interest Division may not be available in some states. Some restrictions may apply. You will find more complete information relating to the Fixed Interest Division in the Offering Brochure. Please read the Offering Brochure carefully before you invest in the Fixed Interest Division. - -------------------------------------------------------------------------------- APPENDIX E - -------------------------------------------------------------------------------- SURRENDER CHARGE FOR EXCESS WITHDRAWALS EXAMPLE The following assumes you made an initial premium payment of $25,000 and additional premium payments of $25,000 in each of the second and third contract years, for total premium payments under the Contract of $75,000. It also assumes a withdrawal at the beginning of the third contract year of 30% of the contract value of $90,000. In this example, $13,500 (15% of $90,000) is maximum free withdrawal amount that you may withdraw during the contract year without a surrender charge. The total withdrawal would be $27,000 ($90,000 x .30). Therefore, $13,500 ($27,000 - $13,500) is considered an excess withdrawal and would be subject to a 4% surrender charge of $540 ($13,500 x .04). This example does not take into account any Market Value Adjustment or deduction of any premium taxes. - -------------------------------------------------------------------------------- APPENDIX F - -------------------------------------------------------------------------------- WITHDRAWAL ADJUSTMENT FOR 7% SOLUTION DEATH BENEFIT EXAMPLES YR-2001 CONTRACT OWNERS These examples assume that withdrawals have not exceeded 7% of premium in any year. They apply to the 7% Solution Death Benefit and to the 7% Solution element of the Max 7 Death Benefit. EXAMPLE #1: THE CONTRACT VALUE (AV) IS LOWER THAN THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $87,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro-rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 - $7,000) AV after Special Withdrawal = $80,000 ($87,000 - $7,000) The Pro-rata Withdrawal is $20,000 ($27,000 - $7,000). 2. Pro-rata Withdrawal Adjustment to MGDB = $30,000 ($120,000 * ($20,000 / $80,000)) MGDB after Pro-rata Withdrawal = $90,000 ($120,000 - $30,000) AV after Pro-rata Withdrawal = $60,000 ($80,000 - $20,000) EXAMPLE #2: THE CONTRACT VALUE (AV) IS GREATER THAN THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $167,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro-rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 - $7,000) AV after Special Withdrawal = $160,000 ($167,000 - $7,000) The Pro-rata Withdrawal is $20,000 ($27,000 - $7,000). 2. Pro-rata Withdrawal Adjustment to MGDB = $15,000 ($120,000 * ($20,000 / $160,000)) MGDB after Pro-rata Withdrawal = $105,000 ($120,000 - $15,000) AV after Pro-rata Withdrawal = $140,000 ($160,000 - $20,000) EXAMPLE #3: THE CONTRACT VALUE (AV) IS EQUAL TO THE DEATH BENEFIT Assume a premium payment of $100,000, AV at the time of withdrawal of $127,000 and a 7% Solution minimum guarantee death benefit ("MGDB") at the time of withdrawal of $127,000. A total withdrawal of $27,000 is made. The withdrawal is a combination of Special Withdrawal and Pro-rata Withdrawal. Calculate the Effect of the Withdrawal 1. The Special Withdrawal is $7,000 (7% of $100,000). MGDB after Special Withdrawal = $120,000 ($127,000 - $7,000) AV after Special Withdrawal = $120,000 ($127,000 - $7,000) The Pro-rata Withdrawal is $20,000 ($27,000 - $7,000). 2. Pro-rata Withdrawal Adjustment to MGDB = $20,000 ($120,000 * ($20,000 / $120,000)) MGDB after Pro-rata Withdrawal = $100,000 ($120,000 - $20,000) AV after Pro-rata Withdrawal = $100,000 ($120,000 - $20,000) - -------------------------------------------------------------------------------- APPENDIX G - -------------------------------------------------------------------------------- SPECIAL FUNDS AND EXCLUDED FUNDS EXAMPLES EXAMPLE #1: The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element ("7% MGDB") of allocating your Contract Value to Special Funds.
- ----------------------------------------- --------------------------------------- -------------------------------------- 7% MGDB IF 50% INVESTED 7% MGDB IF 0% INVESTED 7% MGDB IF 100% INVESTED IN SPECIAL FUNDS IN SPECIAL FUNDS IN SPECIAL FUNDS - ----------------------------------------- --------------------------------------- -------------------------------------- END OF YR COVERED SPECIAL TOTAL END OF YR COVERED SPECIAL TOTAL END OF YR COVERED SPECIAL TOTAL 0 500 500 1,000 0 1,000 -- 1,000 0 0 1000 1000 1 535 500 1,035 1 1,070 -- 1,070 1 0 1000 1000 2 572 500 1,072 2 1,145 -- 1,145 2 0 1000 1000 3 613 500 1,113 3 1,225 -- 1,225 3 0 1000 1000 4 655 500 1,155 4 1,311 -- 1,311 4 0 1000 1000 5 701 500 1,201 5 1,403 -- 1,403 5 0 1000 1000 6 750 500 1,250 6 1,501 -- 1,501 6 0 1000 1000 7 803 500 1,303 7 1,606 -- 1,606 7 0 1000 1000 8 859 500 1,359 8 1,718 -- 1,718 8 0 1000 1000 9 919 500 1,419 9 1,838 -- 1,838 9 0 1000 1000 10 984 500 1,484 10 1,967 -- 1,967 10 0 1000 1000 - ----------------------------------------- --------------------------------------- --------------------------------------
- ----------------------------------------- --------------------------------------- 7% MGDB IF TRANSFERRED TO 7% MGDB IF TRANSFERRED TO SPECIAL FUNDS COVERED FUNDS AT THE BEGINNING OF YEAR 6 AT THE BEGINNING OF YEAR 6 - ----------------------------------------- --------------------------------------- END OF YR COVERED SPECIAL TOTAL END OF YR COVERED SPECIAL TOTAL 0 1,000 -- 1,000 0 -- 1,000 1,000 1 1,070 -- 1,070 1 -- 1,000 1,000 2 1,145 -- 1,145 2 -- 1,000 1,000 3 1,225 -- 1,225 3 -- 1,000 1,000 4 1,311 -- 1,311 4 -- 1,000 1,000 5 1,403 -- 1,403 5 -- 1,000 1,000 6 -- 1,403 1,403 6 1,070 -- 1,070 7 -- 1,403 1,403 7 1,145 -- 1,145 8 -- 1,403 1,403 8 1,225 -- 1,225 9 -- 1,403 1,403 9 1,311 -- 1,311 10 -- 1,403 1,403 10 1,403 -- 1,403 - ----------------------------------------- ---------------------------------------
EXAMPLE #2: The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element ("7% MGDB") of allocating your Contract Value to Excluded Funds.
----------------------------------------------------------------------------- 7% MGDB IF 50% INVESTED IN EXCLUDED FUNDS ----------------------------------------------------------------------------- Covered Excluded Total -------------------------------------------------------- End of yr 7% MGDB Death AV "7% MGDB" AV 7% MGDB AV Benefit 0 500 500 500 500 1,000 1,000 1,000 1 535 510 535 510 1,045 1,020 1,045 2 572 490 572 490 1,062 980 1,062 3 613 520 613 520 1,133 1,040 1,133 4 655 550 655 550 1,205 1,100 1,205 5 701 450 701 450 1,151 900 1,151 6 750 525 750 525 1,275 1,050 1,275 7 803 600 803 600 1,403 1,200 1,403 8 859 750 859 750 1,609 1,500 1,609 9 919 500 919 500 1,419 1,000 1,419 10 984 300 984 300 1,284 600 1,284
----------------------------------------- ----------------------------------------- 7% MGDB IF 0% INVESTED 7% MGDB IF 100% INVESTED IN EXCLUDED FUNDS IN EXCLUDED FUNDS ----------------------------------------- ----------------------------------------- Covered Excluded -------------------- --------------------- End of yr Death End of yr Death 7% MGDB AV Benefit "7% MGDB" AV Benefit 0 1,000 1,000 1,000 0 1,000 1,000 1,000 1 1,070 1,020 1,070 1 1,070 1,020 1,020 2 1,145 980 1,145 2 1,145 980 980 3 1,225 1,040 1,225 3 1,225 1,040 1,040 4 1,311 1,100 1,311 4 1,311 1,100 1,100 5 1,403 900 1,403 5 1,403 900 900 6 1,501 1,050 1,501 6 1,501 1,050 1,050 7 1,606 1,200 1,606 7 1,606 1,200 1,200 8 1,718 1,500 1,718 8 1,718 1,500 1,500 9 1,838 1,000 1,838 9 1,838 1,000 1,000 10 1,967 600 1,967 10 1,967 600 600 ----------------------------------------- -----------------------------------------
Note: AV are hypothetical illustrative values. Not a projection. "7% MGDB" for Excluded funds is notional. Not payable as a benefit. Death Benefit for Excluded Funds equals Accumulation Value (AV)
------------------------------------------------------------------------------- TRANSFER FROM COVERED FUNDS TO EXCLUDED FUNDS AT THE BEGINNING OF YEAR 6 ------------------------------------------------------------------------------- Covered Excluded Total --------------------------------------------------------- end of yr 7% MGDB AV "7% AV 7% MGDB AV Death MGDB" Benefit -- 1,000 1,000 -- -- 1,000 1,000 1,000 1 1,050 1,020 -- -- 1,050 1,020 1,050 2 1,103 980 -- -- 1,103 980 1,103 3 1,158 1,040 -- -- 1,158 1,040 1,158 4 1,216 1,100 -- -- 1,216 1,100 1,216 5 1,276 900 -- -- 1,276 900 1,276 6 -- -- 1,340 1,050 1,050 1,050 1,050 7 -- -- 1,407 1,200 1,200 1,200 1,200 8 -- -- 1,477 1,500 1,500 1,500 1,500 9 -- -- 1,551 1,000 1,000 1,000 1,000 10 -- -- 1,629 600 600 600 600
Note: 7% MGDB transferred to Excluded Funds equals the 7% MGDB in Covered Funds (or pro-rata portion thereof for partial transfer). Transfers from Special Funds to Excluded Funds work the same as Covered to Excluded (except 7% MGDB in Special Funds does not accumulate).
------------------------------------------------------------------------------- TRANSFER FROM EXCLUDED FUNDS TO COVERED FUNDS AT THE BEGINNING OF YEAR 6 ------------------------------------------------------------------------------- Covered Excluded Total --------------------------------------------------------- end of yr 7% MGDB AV "7% AV 7% MGDB AV Death MGDB" Benefit -- -- -- 1,000 1,000 1,000 1,000 1,000 1 -- -- 1,050 1,020 1,020 1,020 1,020 2 -- -- 1,103 980 980 980 980 3 -- -- 1,158 1,040 1,040 1,040 1,040 4 -- -- 1,216 1,100 1,100 1,100 1,100 5 -- -- 1,276 900 900 900 900 6 945 1,050 -- -- 945 1,050 1,050 7 992 1,200 -- -- 992 1,200 1,200 8 1,042 1,500 -- -- 1,042 1,500 1,500 9 1,094 1,000 -- -- 1,094 1,000 1,094 10 1,149 600 -- -- 1,149 600 1,149 -------------------------------------------------------------------------------
Note: 7% MGDB transferred to Covered Funds is the lesser of 7% MGDB in Excluded Funds (or portion thereof for partial transfer) and AV transferred to Covered Funds. Transfers from Excluded Funds to Special Funds work the same as Excluded to Covered (except 7% MGDB in Special Funds does not accumulate). - -------------------------------------------------------------------------------- APPENDIX H - -------------------------------------------------------------------------------- DEATH BENEFITS FOR YR-2001 CONTRACT OWNERS THE PURPOSE OF THIS APPENDIX IS TO DESCRIBE THE DEATH BENEFITS APPLICABLE TO CONTRACT OWNERS IN YR-2001. OTHER THAN AS DESCRIBED BELOW, PLEASE SEE THE PROSPECTUS FOR A FULL DESCRIPTION OF YOUR DEATH BENEFIT OPTIONS AND OTHER CONTRACT FEATURES. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. AS USED IN THIS APPENDIX, "NON-SPECIAL FUNDS" HAS THE SAME MEANING AS "COVERED FUNDS" IN THE PROSPECTUS. We use the Base Death Benefit to help determine the minimum death benefit payable under each of the death benefit options described below. You do not elect the Base Death Benefit. The BASE DEATH BENEFIT is equal to the greater of: 1) the contract value; and 2) the cash surrender value. The STANDARD DEATH BENEFIT equals the GREATEST of the Base Death Benefit, the floor, and the SUM of: 1) the contract value allocated to Special Funds; and 2) the Standard Minimum Guaranteed Death Benefit for amounts allocated to Non-Special Funds. The Standard Minimum Guaranteed Death Benefit equals: 1) the initial premium payment allocated to Special and Non-Special Funds, respectively; 2) increased by premium payments and adjusted for transfers, allocated to Special and Non-Special Funds, respectively, after issue; and 3) reduced by a pro-rata adjustment for any withdrawal or transfer taken from the Special and Non-Special Funds, respectively. In the event of transfers from Special to Non-Special funds, the increase in the Minimum Guaranteed Death Benefit of the Non-Special Fund will equal the lesser of the reduction in the Minimum Guaranteed Death Benefit in the Special Fund and the contract value transferred. In the event of transfers from Non-Special to Special Funds, the increase in the Minimum Guaranteed Death Benefit of the Special Fund will equal the reduction in the Minimum Guaranteed Death Benefit in the Non-Special Fund. THE FLOOR FOR THE DEATH BENEFIT IS the total premium payments made under the Contract reduced by a pro-rata adjustment for any withdrawal. ENHANCED DEATH BENEFIT OPTIONS. Under the Enhanced Death Benefit options, if you die before the annuity start date, your beneficiary will receive the greater of the Standard Death Benefit and the Enhanced Death Benefit option elected. For purposes of calculating the Enhanced Death Benefits, certain investment portfolios, and the Fixed Account are designated as "Special Funds." For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. We may, with 30 days notice to you, designate any investment portfolio as a Special Fund on existing contracts with respect to new premiums added to such investment portfolio and also with respect to new transfers to such investment portfolio. Selecting a Special Fund may limit or reduce the enhanced death benefit. For the period during which a portion of the contract value is allocated to a Special Fund, we may, at our discretion, reduce the mortality and expense risk charge attributable to that portion of the contract value. The reduced mortality and expense risk charge will be applicable only during that period. The 7% SOLUTION ENHANCED DEATH BENEFIT, equals the GREATEST of: 1) the Standard Death Benefit; 2) the floor; and 3) the sum of the contract value allocated to Special Funds and the 7% Solution Minimum Guaranteed Death Benefit for Non-Special Funds. The 7% Solution Minimum Guaranteed Death Benefit for Special and Non-Special Funds equals the lesser of: 1) premiums, adjusted for withdrawals and transfers, accumulated at 7% until the earlier of attainment of age 80 or reaching the cap (equal to 3 times all premium payments, as reduced by adjustments for withdrawals) and thereafter at 0%, subject to a floor as described below, and 2) the cap. Withdrawals of up to 7% per year of cumulative premiums are referred to as special withdrawals. Special withdrawals reduce the 7% Solution Minimum Guaranteed Death Benefit by the amount of contract value withdrawn. For any other withdrawals (withdrawals in excess of the amount available as a special withdrawal), a pro-rata adjustment to the 7% Solution Minimum Guaranteed Death Benefit is made. The amount of the pro-rata adjustment for withdrawals from Non-Special Funds will equal (a) times (b) divided by (c): where (a) is the 7% Solution Minimum Guaranteed Death Benefit for Non-Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Non-Special Funds before the withdrawal. The amount of the pro-rata adjustment for withdrawals from Special Funds will equal (a) times (b) divided by (c): where (a) is the 7% Solution Minimum Guaranteed Death Benefit for Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Special Funds before the withdrawal. Transfers from Special to Non-Special Funds will reduce the 7% Solution Minimum Guaranteed Death Benefit and the cap for Special Funds on a pro-rata basis. The resulting increase in the 7% Solution Minimum Guaranteed Death Benefit in the Non-Special Funds will equal the lesser of the reduction in the 7% Solution Minimum Guaranteed Death Benefit in the Special Funds and the contract value transferred. The increase in the cap for Non-Special Funds will equal the reduction in the cap for Special Funds. Transfers from Non-Special to Special Funds will reduce the 7% Solution Minimum Guaranteed Death Benefit and the cap in the Non-Special Funds on a pro-rata basis. The resulting increase in the 7% Solution Minimum Guaranteed Death Benefit and the cap for the Special Funds will equal the reduction in the 7% Solution Minimum Guaranteed Death Benefit and the cap for the Non-Special Funds. THE FLOOR FOR THE 7 % SOLUTION ENHANCED DEATH BENEFIT is determined by the same calculations described above for the 7% Solution Minimum Guaranteed Death Benefit except as follows: If you transfer contract value to a Special Fund, the minimum floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non-Special Funds. Upon such transfer back to Non-Special Funds, we will resume accumulating that portion of the floor at the 7% annual effective rate as described above, subject to the age limit and the cap described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals will reduce the floor as described for the minimum guaranteed death benefit above. Your death benefit will be the greater of the floor and the death benefit determined as described above. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the GREATEST of: 1) the Standard Death Benefit; 2) the floor; and 3) the sum of the contract value allocated to Special Funds and the Annual Ratchet Minimum Guaranteed Death Benefit allocated to Non-Special Funds. The Annual Ratchet Minimum Guaranteed Death Benefit equals: 1) the initial premium allocated at issue to Special and Non-Special Funds, respectively; 2) increased dollar for dollar by any premium allocated after issue to Special and Non-Special funds, respectively; 3) for Non-Special Funds, adjusted on each anniversary that occurs on or prior to attainment of age 90 to the greater of the Annual Ratchet Minimum Guaranteed Death Benefit for Non-Special Funds from the prior anniversary (adjusted for new premiums, partial withdrawals allocated to Non-Special Funds, and transfers between Special and Non-Special Funds) and the current contract value allocated to Non-Special Funds; (4) for Special Funds, adjusted on each anniversary that occurs on or prior to attainment of age 90 to the greater of the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds from the prior anniversary (adjusted for new premiums, partial withdrawals allocated to Special Funds, and transfers between Special and Non-Special and Non-Special Funds) and the current contract value allocated to Special Funds. Withdrawals reduce the Annual Ratchet Minimum Guaranteed Death Benefit on a pro-rata basis, based on the amount withdrawn from the Special and Non-Special Funds, respectively. The amount of the pro-rata adjustment for withdrawals from Non-Special Funds will equal (a) times (b) divided by (c): where (a) is the Annual Ratchet Minimum Guaranteed Death Benefit for Non-Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Non-Special Funds before withdrawal. The amount of the pro-rata adjustment for Special Funds will equal (a) times (b) divided by (c): where (a) is the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds prior to the withdrawal; (b) is the contract value of the withdrawal; and (c) is the contract value allocated to Special Funds before the withdrawal. Transfers from Special to Non-Special Funds will reduce the Annual Ratchet Minimum Guaranteed Death Benefit for Special Funds on a pro-rata basis. The resulting increase in the Annual Ratchet Minimum Guaranteed Death Benefit in the Non-Special Funds will equal the lesser of the reduction in the Annual Ratchet Minimum Guaranteed Death Benefit in the Special Funds and the contract value transferred. Transfers from Non-Special to Special Funds will reduce the Annual Ratchet Minimum Guaranteed Death Benefit for Non-Special Funds on a pro-rata basis. The resulting increase in the Annual Ratchet Minimum Guaranteed Death Benefit for the Special Funds will equal the reduction in the Annual Ratchet Minimum Guaranteed Death Benefit for the Non-Special Funds. THE FLOOR FOR THE ANNUAL RATCHET ENHANCED DEATH BENEFIT is determined as described above for the Annual Ratchet Minimum Guaranteed Death Benefit except that all investments will be treated as Non-Special Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit. Under this death benefit option, the 7% Solution Enhanced Death Benefit and the Annual Ratchet Enhanced Death Benefit are calculated in the same manner as if each were the elected benefit. Note: In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. The enhanced death benefits may not be available in all states. DEATH BENEFITS FOR EXCLUDED FUNDS We will be designating certain investment portfolios as "Excluded Funds." Excluded Funds will include certain investment portfolios that, due to their volatility, will be excluded from the death benefit guarantees that might otherwise be provided. We may add new portfolios as Excluded Funds. We may also reclassify an existing portfolio as an Excluded Fund or remove such classification upon 30 days notice to you. Such reclassification will apply only to amounts transferred or otherwise added to such portfolio after the effective date of the reclassification. Investment in Excluded Funds will impact your death benefit. For the period of time, and to the extent, that you allocate premium or contract value to Excluded Funds, your death benefit attributable to that allocation will equal the contract value of that allocation. Any guarantee of death benefit in excess of contract value otherwise provided with regard to allocations to Non-Excluded Funds, does not apply to allocations to Excluded Funds. The death benefit provided under the Contract may be reduced to the extent that you allocate premium or contract value to Excluded Funds. Transfers from Excluded Funds to Non-Excluded funds will reduce all death benefit components for Excluded Funds on a pro-rata basis. Except with respect to any maximum guaranteed death benefit, the resulting increase in the Non-Excluded Funds death benefit component will equal the lesser of the reduction in the death benefit for Excluded Funds and the contract value transferred. With respect to the maximum guaranteed death benefit, where applicable, the resulting increase in the Non-Excluded Funds maximum guaranteed death benefit will equal the reduction in the maximum guaranteed death benefit for Excluded Funds. Transfers from Non-Excluded Funds to Excluded Funds will reduce the Non-Excluded Funds death benefit components on a pro-rata basis. The resulting increase in the death benefit components of Excluded Funds will equal the reduction in the Non-Excluded Funds death benefit components. - -------------------------------------------------------------------------------- APPENDIX I - -------------------------------------------------------------------------------- DEATH BENEFITS FOR MAY-2002 AND YR-2003 CONTRACT OWNERS The following is a description of the 7% Solution Enhanced Death Benefit, the Annual Ratchet Enhanced Death Benefit and the Max 7 Enhanced Death Benefit for May-2002 and Yr-2003 contract owners. Other than as described below, please see the prospectus for a full description of your death benefit options and other Contract features. Capitalized terms have the same meaning as described in the prospectus. The 7% SOLUTION ENHANCED DEATH BENEFIT is the greater of: 1) the Standard Death Benefit; and 2) the lesser of: a) 3 times all premium payments, adjusted for withdrawals (the "cap"); and b) the sum of the 7% Solution Minimum Guaranteed Death Benefit ("7% MGDB") allocated to Covered Funds, the 7% MGDB allocated to Special Funds, and the contract value allocated to Excluded Funds. For purposes of calculating the 7% Solution Enhanced Death Benefit, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio, the ING Limited Maturity Bond Portfolio, the ING VP Bond Portfolio, the ING PIMCO Core Bond Portfolio, the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account, the Fixed Interest Division, and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The 7% MGDB allocated to Covered Funds equals premiums allocated to Covered Funds, adjusted for withdrawals and transfers, accumulated at 7% until age 80 or the 7% MGDB reaches the cap. There is no accumulation once the cap is reached. Payment of additional premiums may cause the accumulation to resume, but there is no catch-up for any period where accumulation was suspended. The 7% MGDB allocated to Special Funds equals premiums allocated to Special Funds, adjusted for withdrawals and transfers. There is no accumulation of Minimum Guaranteed Death Benefit allocated to Special Funds. The 7% MGDB allocated to Excluded Funds is determined in the same way as the 7% MGDB for Covered Funds, but the calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. Withdrawals reduce the 7% MGDB on a pro-rata basis. The percentage reduction in the 7% MGDB for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. The percentage reduction in the cap equals the percentage reduction in total contract value resulting from the withdrawal. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Transfers among Fund categories do not reduce the overall 7% MGDB, but do affect the amount of the 7% MGDB in a particular Fund category. Net transfers from among the Funds will reduce the 7% MGDB in the Funds on a pro-rata basis. The ANNUAL RATCHET ENHANCED DEATH BENEFIT equals the greater of: 1) the Standard Death Benefit; and 2) the Annual Ratchet Minimum Guaranteed Death Benefit ("Annual Ratchet MGDB") allocated to Covered Funds plus the contract value allocated to Excluded Funds, less any credits added within 1 year prior to death. No funds are currently designated as Excluded Funds for purposes of the Annual Ratchet MGDB. The Annual Ratchet MGDB allocated to Covered Funds on the contract date equals the premium and credits allocated to Covered Funds. On each contract anniversary that occurs on or prior to attainment of age 90, the Annual Ratchet MGDB in Covered Funds will be set to the greater of: 1) the current contract value in Covered Funds (after deductions occurring as of that date); or 2) the Annual Ratchet MGDB in Covered Funds from the prior contract anniversary (after deductions occurring on that date), adjusted for new premiums, credits, and partial withdrawals attributable to Covered Funds, and transfers. Other than on contract anniversaries, the Annual Ratchet MGDB in the Covered Funds is equal to the Annual Ratchet MGDB in the Covered Funds from the last contract anniversary, adjusted for new premiums, credits, and partial withdrawals attributable to Covered Funds, and transfers. The Annual Ratchet MGDB allocated to Excluded Funds on the contract date equals the premium and credits allocated to Excluded Funds. The calculation is not used for benefit purposes, but only to determine the impact of transfers to and from Excluded Funds. On the contract date, the Annual Ratchet MGDB allocated to Excluded Funds is equal to the premium and credits allocated to Excluded Funds. On each contract anniversary that occurs on or prior to attainment of age 90, the Annual Ratchet MGDB in Excluded Funds will be set to the greater of: 1) the current contract value in Excluded Funds (after deductions occurring as of that date); or 2) the Annual Ratchet MGDB in the Excluded Funds from the prior contract anniversary (after deductions occurring on that date), adjusted for new premiums and credits and partial withdrawals attributable to Excluded Funds, and transfers. Other than on contract anniversaries, the Annual Ratchet MGDB in the Excluded Funds is equal to the Annual Ratchet MGDB in the Excluded Funds from the last contract anniversary, adjusted for new premiums, credits, and partial withdrawals attributable to Excluded Funds, and transfers. Withdrawals reduce the Annual Ratchet MGDB on a pro-rata basis. The pro-rata adjustment is based on the change in contract value resulting from the withdrawal, not the amount requested. Net transfers from Covered Funds to Special or Excluded Funds will reduce the 7% MGDB in Covered Funds on a pro-rata basis. The increase in the 7% MGDB allocated to Special or Excluded Funds, as applicable, will equal the decrease in the 7% MGDB in Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the Annual Ratchet MGDB in Excluded Funds on a pro-rata basis. The increase in the Annual Ratchet MGDB allocated to Covered Funds will equal the lesser of the net contract value transferred and the reduction in the Annual Ratchet MGDB in Excluded Funds. The MAX 7 ENHANCED DEATH BENEFIT equals the greater of the 7% Solution Enhanced Death Benefit or the Annual Ratchet Enhanced Death Benefit described above. Each Enhanced Death Benefit is determined independently of the other at all times. - -------------------------------------------------------------------------------- APPENDIX J - -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFITS FOR YR-2001 CONTRACT OWNERS The following is a description of the optional rider benefits for Yr-2001 contract owners who elected an optional rider benefit. We may be designating certain investment portfolios as "Excluded Funds". We may add new portfolios as Excluded Funds. We may also reclassify an existing portfolio as an Excluded Fund or remove such classification upon 30 days notice to you. Such reclassification will apply only to amounts transferred or otherwise added to such portfolio after the effective date of the reclassification. Investment in Excluded Funds will impact the benefit under any optional rider that you have elected. If you never invest in Excluded Funds, your rider benefits will be unaffected. Other than as specified below, please see the prospectus for a complete description of your optional rider benefits. Capitalized terms have the same meaning as described in the prospectus. OPTIONAL RIDER CHARGES MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB). The quarterly charge for the MGAB rider is as follows: ---------------- ----------------------------------------------- Waiting Period Quarterly Charge ---------------- ----------------------------------------------- 10 Year 0.125% of the MGAB Charge Base (0.50% annually) 20 Year 0.125% of the MGAB Charge Base (0.50% annually) ---------------- ----------------------------------------------- The MGAB Charge Base is the total of (i) the MGAB Base on the rider date and (ii) premiums during the 2-year period commencing on the rider date, reduced pro-rata for withdrawals and reduced for transfers made within the last 3 years prior to the MGAB Benefit Date. We will deduct charges only during your ten-year or twenty-year waiting period, as applicable. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and MGAB Charge Base immediately prior to the surrender or annuitization. The MGAB Charge Base is adjusted for transfers between Special and Non-Special Funds or Excluded Funds. MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The quarterly charge for the MGIB rider is as follows: ----------- ----------------------------------------------- MGIB Rate Quarterly Charge ----------- ----------------------------------------------- 7% 0.125% of the MGIB Charge Base (0.50% annually) ----------- ----------------------------------------------- The MGIB Charge Base is the total of premiums paid more than 5 years before the earliest MGIB Benefit Date, reduced pro-rata for all withdrawals taken while the MGIB rider is in effect, and accumulated at the MGIB Rate (7%) to the earlier of age 80 and reaching the MGIB Base Maximum. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your MGIB Charge Base immediately prior to the surrender or annuitization. The MGIB Charge Base is adjusted for transfers between Special and Non-Special Funds or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment Amount. The original MGWB Eligible Payment Amount is equal to all premiums paid during the first two contract years following the rider date. When we calculate the MGWB rider charge, we do not reduce the Eligible Payment Amount by the amount of any withdrawals taken while the MGWB rider is in effect. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your original MGWB Eligible Payment Amount immediately prior to the surrender or annuitization. OPTIONAL RIDER BENEFITS MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB) RIDER. The MGAB rider is an optional benefit which provides you with an MGAB benefit intended to guarantee a minimum contract value at the end of a specified waiting period. The MGAB is a one-time adjustment to your contract value in the event your contract value on the MGAB Benefit Date is less than a specified amount. The MGAB rider may offer you protection in the event your Contract loses value during the MGAB waiting period. For discussion of the charges we deduct under the MGAB rider, see "Optional Rider Charges." The MGAB rider offers a ten-year option and a twenty-year option, of which you may purchase only one. The ten-year option has a waiting period of ten years and, other than for allocations to Special Funds, guarantees that your contract value at the end of ten years will at least equal your initial premium payment, reduced pro-rata for withdrawals. Transfers made within 3 years prior to the MGAB Benefit Date will also reduce the benefit pro-rata. The twenty-year option has a waiting period of twenty years and, other than allocations to Special Funds, guarantees that your contract value at the end of twenty years will at least equal two times your initial premium payment, reduced pro-rata for withdrawals and reduced for transfers made within 3 years prior to the MGAB Benefit Date. If you add the 20-year option rider after the contract date, any payment of premiums after the rider date, and/or investments in the Special Funds, may prevent the MGAB Base from doubling over the waiting period. On the MGAB Benefit Date, which is the next business day after the applicable waiting period, we calculate your Minimum Guaranteed Accumulation Benefit. CALCULATING THE MGAB. We calculate your MGAB as follows: 1. WE FIRST DETERMINE YOUR MGAB BASE. The MGAB Base is only a calculation used to determine the MGAB. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your annuity income, cash surrender value and death benefits. The MGAB Base is tracked separately for Special and Non-Special Funds, based on the initial allocation of premium (or contract value), subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The aggregate MGAB Base is used to determine the MGAB on the MGAB Benefit Date. THE AGGREGATE MGAB BASE EQUALS THE SUM OF (1) THE LESSER OF THE MGAB BASE ALLOCATED TO SPECIAL FUNDS AND THE CONTRACT VALUE IN THE SPECIAL FUNDS; AND (2) THE MGAB BASE FOR NON-SPECIAL FUNDS. THUS, INVESTING IN THE SPECIAL FUNDS MAY LIMIT THE MGAB BENEFIT. HOWEVER, THE MGAB BASE IS ALSO SUBJECT TO A "FLOOR" WHICH MAY PARTIALLY OFFSET THE EFFECTS OF INVESTING IN SPECIAL FUNDS. If you purchased the MGAB rider on the contract date, and (i) elected the ten-year option, your MGAB Base for Special and Non-Special Funds is equal to your initial premium plus any additional premium added to your Contract during the 2-year period after your rider date, reduced pro-rata for any withdrawals and any transfers made within 3 years prior to the MGAB Benefit Date; or (ii) elected the twenty-year option your MGAB Base for Special and Non-Special Funds is equal to your initial premium, plus any additional premium added to your Contract during the 2-year period after your contract date, accumulated at the MGAB Rate reduced pro-rata for any withdrawals and reduced for any transfers made within 3 years prior to the MGAB Benefit Date. The MGAB Rate is the annual effective rate of 3.5265%. Accumulation of eligible additional premiums starts on the date the premium was received. If you purchased the MGAB rider after the contract date, your MGAB Base is equal to your contract value on the rider date, plus premiums added during the 2-year period after your rider date, accumulated at the MGAB Rate (if applicable, as described above) and adjusted pro-rata for withdrawals and transfers as described below. the MGAB Base. Any additional premium payments you added to your contract after the second rider anniversary are not included in the MGAB Base. Thus, the MGAB rider may not be appropriate for you if you plan to add substantial premium payments after your second rider anniversary. Withdrawals taken while the MGAB rider is in effect, as well as transfers made within 3 years prior to the MGAB Benefit Date, will reduce the value of your MGAB Base pro-rata. This means that the MGAB Base (and the MGAB Charge Base) will be reduced by the same percent as the percent of contract value that was withdrawn (or transferred). We will look to your contract value immediately before the withdrawal or transfer when we determine this percent. Net transfers from Special Funds to Non-Special Funds will reduce the MGAB Base and MGAB Charge Base allocated to Special Funds on a pro-rata basis. If the transfer is made more than 3 years before the Benefit Date, there will be a corresponding increase in the MGAB Base for Non-Special Funds equal to the lesser of the reduction in the MGAB Base for Special Funds and the net contract value transferred. Net transfers from Non-Special Funds to Special Funds will reduce the MGAB Base and MGAB Charge Base allocated to Non-Special Funds on a pro-rata basis. If the transfer is made more than 3 years before the Benefit Date, there will be a corresponding increase in the MGAB Base for Special Funds equal to the reduction in the MGAB Base for Non-Special Funds. 2. THEN WE DETERMINE THE FLOOR. The floor will be calculated in the same manner as the MGAB Base described above, except as follows: For the ten-year option, all investments will be treated as Non-Special Funds. For the twenty-year option, if you transfer contract value to a Special Fund more than 3 years before the Benefit Date, the floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non-Special Funds. Upon such transfer back to Non-Special Funds, we will resume accumulating that portion of the floor at the MGAB Rate described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals and other transfers will reduce the floor as described for the MGAB Base above. 3. WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB BENEFIT DATE FROM THE GREATER OF THE FLOOR AND YOUR AGGREGATE MGAB BASE. The contract value that we subtract includes both the contract value in the subaccounts in which you are invested and the contract value in your Fixed Interest Allocations, if any. 4. ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it to the subaccounts in which you are invested pro-rata based on the proportions of your then contract value in the subaccounts on that date, unless you have previously given us other allocation instructions. If you do not have an investment in any subaccount on the MGAB Benefit Date, we will allocate the MGAB to the Wells Fargo VT Money Market subaccount on your behalf. After the crediting of the MGAB, the amount of your annuity income, cash surrender value and death benefits will reflect the crediting of the MGAB to your contract value to the extent the contract value is used to determine such value. PURCHASE. To purchase the MGAB rider, you must be age 80 or younger on the Rider Date if you choose the ten-year option and age 65 or younger on the rider date if you choose the twenty-year option. The waiting period must end at or before your annuity start date. The MGAB rider may be purchased (i) on the contract date, and (ii) within 30 days following the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. THE MGAB BENEFIT DATE. If you purchased the MGAB rider on the contract date or added the MGAB rider within 30 days following the contract date, the MGAB Benefit Date is your 10th contract anniversary for the ten-year option or 20th contract anniversary for the twenty-year option. If you added the MGAB rider during the 30-day period preceding your first contract anniversary after the date of this prospectus, your MGAB Benefit Date will be the first contract anniversary occurring after 10 years (for the ten-year option) or 20 years (for the twenty-year option) after the rider date. The MGAB rider is not available if the MGAB Benefit Date would fall beyond the latest annuity start date. CANCELLATION. If you elected the twenty-year option, you have a one-time right to cancel the MGAB rider on your first contract anniversary that is at least 10 years after the rider date. If you purchased the MGAB rider during the 30-day period following the contract date, your one-time right to cancel the rider occurs on the tenth anniversary of your contract date. To cancel, you need to send written notice to our Customer Service Center at least 30 days before such anniversary date. If the MGAB rider is terminated before the MGAB Benefit Date, you will not be credited with the MGAB and we assess the pro-rata portion of the MGAB rider changes for the current quarter. NOTIFICATION. Any crediting of the MGAB will be reported in your first quarterly statement following the MGAB Benefit Date. MINIMUM GUARANTEED INCOME BENEFIT (MGIB) RIDER. The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Benefit Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to the Special Funds, the MGIB Rate, the adjustment for Special Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds may limit the MGIB benefit. However, the MGIB Benefit Base is also subject to a "floor" which may partially offset the effects of investing in Special Funds. For a discussion of the charges we deduct under the MGIB rider, see "Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Benefit Date is the greatest of: (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; (ii) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the then current income factors in effect for the annuity option you selected; and (iii)the MGIB annuity income based on the greater of the floor and your MGIB Benefit Base on the MGIB Benefit Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust both the floor and the MGIB Benefit Base for any premium tax recovery and Market Value Adjustment (see the ING USA Fixed Account prospectus) that would otherwise apply at annuitization. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Benefit Date. We require a 10-year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30-day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Benefit Date. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Benefit Date, we calculate your MGIB annuity income as follows: 1. WE FIRST DETERMINE YOUR MGIB BENEFIT BASE. The MGIB Benefit Base is only a calculation used to determine the MGIB. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Base or MGIB Base Maximum. The MGIB Base is tracked separately for Special and Non-Special Funds, based on initial allocation of eligible premium (or contract value) and subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The MGIB Benefit Base equals the sum of (1) the contract value of Special Funds, and (2) the MGIB Base for Non-Special Funds. The MGIB Base is equal to the lesser of (i) and (ii) where: (a) is your initial premium (or contract value on the rider date if you purchased the MGIB rider after the contract date), plus any eligible additional premiums added to your Contract, reduced pro-rata by all withdrawals taken while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the MGIB Base Maximum, and at 0% thereafter; and (b) is the MGIB Base Maximum, which equals 200% of allocated eligible premiums, adjusted for withdrawals and transfers. Eligible additional premium payments are those added more than 5 years before the earliest MGIB Benefit Date and are included in the MGIB Base. Premiums paid after that are excluded from the MGIB Base. Net transfers from Special Funds to Non-Special Funds will reduce the MGIB Base and MGIB Base Maximum allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Base for Non-Special Funds will equal the lesser of the reduction in the MGIB Base for Special Funds and the net contract value transferred. The increase in the MGIB Base Maximum for Non-Special Funds equals the reduction in the MGIB Base Maximum for Special Funds. Net transfers from Non-Special Funds to Special Funds will reduce the MGIB Base and MGIB Base Maximum allocated to Non-Special Funds on a pro-rata basis. The resulting increase in the MGIB Base and the MGIB Base Maximum for Special Funds equals the reduction in the MGIB Base and MGIB Base Maximum for Non-Special Funds. Transfers to one or more Special Funds could reduce the MGIB Benefit. The MGIB Rate is currently 7%. The Company may at its discretion discontinue offering this rate. The MGIB Rate is an annual effective rate. 2. WE THEN DETERMINE THE FLOOR. The floor will be calculated in the same manner as the MGIB Base described above, except as follows: If you transfer contract value to a Special Fund, the floor will not be reduced by the transfer. Instead, a portion of the floor (equal to the percentage of contract value transferred) just prior to the transfer will be frozen (with 0% subsequent growth) unless the contract value is transferred back to the Non-Special Funds. Upon such transfer back to Non-Special Funds, we will resume accumulating that portion of the floor at the MGIB Rate described above, subject to the age limit and the Maximum described above. Similarly, for contract value allocated directly to Special Funds, that portion of the floor will be the contract value allocated, and will not accumulate while invested in Special Funds. Withdrawals will reduce the floor as described for the MGIB Base above. 3. THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING THE GREATER OF THE MINIMUM FLOOR AND YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT AND PREMIUM TAXES) BY THE APPLICABLE INCOME FACTOR, AND THEN DIVIDING BY $1,000. The MGIB Income Options are available under the MGIB Rider: (i) Income for Life (Single Life or Joint with 100% Survivor) and 10-30 Year Certain; (ii) Income for a 20-30 Year Period Certain; or (iii)Any other income plan offered by the Company in connection with the MGIB rider on the MGIB Benefit Date. On the MGIB Benefit Date, we would apply the greater of the floor and the MGIB Benefit Base under the Table of Income Factors specified in the MGIB rider for the Income Option you selected. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. Then we compare the MGIB annuity income under the rider guarantee for the option selected with the annuity income under your Contract for the same option. The greater amount of income will be available to you on the MGIB Benefit Date. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten-year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten year waiting period before the MGIB rider can be exercised. THE MGIB BENEFIT DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Benefit Date is the contract anniversary next following or is incident with exercise of your option to annuitize after a ten-year waiting period from the contract date. If you added the MGIB rider at any other time, your MGIB Benefit Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuities under the MGIB rider. NO CHANGE OF ANNUITANT. Once the MGIB rider is purchased, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. NOTIFICATION. On or about 30 days prior to the MGIB Benefit Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise. The actual amount of the MGIB annuity benefit will be determined as of the MGIB Benefit Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN THE MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB) RIDER. The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero, you will receive periodic payments equal to all premium payments paid during the first two contract years (Eligible Payment Amount) adjusted for any prior withdrawals. To maintain this guarantee, withdrawals in any contract year may not exceed 7% of your adjusted Eligible Payment Amount. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. For a discussion of the charges we deduct under the MGWB rider, see "Optional Rider Charges." Your original Eligible Payment Amount depends on when you purchase the MGWB rider and is: (i) if you purchased the MGWB rider on the contract date, your premium payments received during the first two contract years; or (ii) if you purchased the MGWB rider after the contract date, your contract value on the rider date, including any premiums received that day, and any subsequent premium payments received during the two-year period commencing on the rider date. THE MGWB WITHDRAWAL ACCOUNT. The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. The MGWB Withdrawal Account is equal to the Eligible Payment Amount, tracked separately for Special and Non-Special Funds, adjusted for any withdrawals and transfers between Special and Non-Special Funds. THE MGWB WITHDRAWAL ACCOUNT EQUALS THE SUM OF (A) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO NON-SPECIAL FUNDS, AND (B) THE LESSER OF (1) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO SPECIAL FUNDS AND (2) THE CONTRACT VALUE IN THE SPECIAL FUNDS. THUS, INVESTING IN THE SPECIAL FUNDS MAY LIMIT THE MGWB WITHDRAWAL ACCOUNT. However, the MGWB Withdrawal Account is also subject to a "floor" which may partially offset the effects of investing in Special Funds. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal for Non-Special Funds and pro-rata for Special Funds, based on the source of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in the MGWB Withdrawal Account of the Special and Non-Special Funds by the proportion that the withdrawal bears to the Contract Value of the Special and Non-Special Funds, respectively, at the time of the withdrawal. If a single withdrawal involves both Special and Non-Special Funds and causes the 7% to be exceeded, the withdrawal will be treated as taken first from Non-Special Funds. Any withdrawals greater than 7% per year of the Eligible Payment Amount will also cause a reduction in the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB Withdrawal Account is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. If the MGWB Withdrawal Account is greater than the floor and a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Special Funds to Non-Special Funds will reduce the MGWB Withdrawal Account allocated to Special Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Non-Special Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Special Funds and the net contract value transferred. Net transfers from Non-Special Funds to Special Funds will reduce the MGWB Withdrawal Account allocated to Non-Special Funds on a pro-rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Special Funds equals the reduction in the MGWB Withdrawal Account for Non-Special Funds. THE FLOOR FOR YOUR MGWB WITHDRAWAL ACCOUNT is equal to the Eligible Payment Amount adjusted for any withdrawals. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the floor by the dollar amount of the withdrawal. Any withdrawals greater than 7% per year of the Eligible Payment Amount will cause a reduction in the floor for the MGWB Withdrawal Account and the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The floor is also reduced by the amount of any periodic payments paid under the MGWB rider once your contract value is zero. If the floor is greater than the MGWB Withdrawal Account and a withdrawal reduces the floor to zero, the MGWB rider terminates and no further benefits are payable under the rider. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." Making any withdrawals in any year greater than 7% per year of the Eligible Payment Amount will reduce the Eligible Payment Amount for future withdrawals and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider, will remain in force, and you may continue to make withdrawals so long as: (i) your contract value is greater than zero; (ii) your MGWB Withdrawal Account or the floor is greater than zero; (iii)your latest allowable annuity start date has not been reached; (iv) you have not elected to annuitize your Contract; and (v) you have not died (unless your spouse has elected to continue the contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero your Contract is given what we refer to as Automatic Periodic Benefit Status if the following conditions exist: (i) your MGWB Withdrawal Account or the floor is greater than zero; (ii) your latest allowable annuity start date has not been reached; (iii)you have not elected to annuitize your Contract; and (iv) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, the greater of the floor and the MGWB Withdrawal Account will be treated as the MGWB Withdrawal Account to determine any rider benefits. We will pay you the annual MGWB periodic payments, beginning on the next contract anniversary equal to the lesser of the remaining MGWB Withdrawal Account or 7% annually of your Eligible Payment Amount until the earliest of (i) your contract's latest annuity start date, (ii) the death of the owner; or (iii) until your MGWB Withdrawal Account is exhausted. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status (that is, your contract value is zero), we will not accept any additional premium payments in your Contract, and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of (i) payment of all MGWB periodic payments, and (ii) payment of the Commuted Value (defined below) or (iii) the owner's death has occurred. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury Strips as quoted by a national quoting service for period(s) applicable to the remaining payments. Once the last MGWB periodic payment is made or we pay you the Commuted Value, your Contract and the MGWB rider terminate. DEATH BENEFIT DURING AUTOMATIC PERIODIC BENEFIT STATUS. If you have never withdrawn more than 7% per year of the Eligible Payment Amount and you elected the 7% Solution Enhanced Death Benefit in your Contract (or you elected the Max 7 Enhanced Death Benefit resulting in the 7% Solution Enhanced Death Benefit as the actual benefit), the death benefit otherwise payable under the terms of your Contract will remain in force during any Automatic Periodic Benefit Status. In determining the amount of the death benefit during the Automatic Periodic Benefit Status, we deem your contract value to be zero and the MGWB periodic payments reduce the enhanced death benefit by the amount of the payment. In all other cases, the death benefit payable during Automatic Periodic Benefit Status is the greater of the floor and your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. If you elected the Max 7 Enhanced Death Benefit, then the 7% Solution and the Annual Ratchet components shall each be calculated as if each were the elected death benefit option. PURCHASE. To purchase the MGWB rider, your must be age 80 or younger on the Rider Date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval whichever is later. - -------------------------------------------------------------------------------- APPENDIX K - -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFIT CHARGES AND MINIMUM GUARANTEED INCOME BENEFIT FOR MAY-2002 CONTRACT OWNERS The following is a description of the optional rider benefits for May-2002 contract owners who elected an optional rider benefit. OTHER THAN AS SPECIFIED BELOW, PLEASE SEE THE PROSPECTUS FOR A COMPLETE DESCRIPTION OF YOUR OPTIONAL RIDER BENEFITS. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. OPTIONAL RIDER CHARGES MINIMUM GUARANTEED ACCUMULATION BENEFIT (MGAB). The quarterly charge for the MGAB rider is as follows: ----------------- ----------------------------------------------- Waiting Period Quarterly Charge ----------------- ----------------------------------------------- 10 Year 0.125% of the MGAB Charge Base (0.50% annually) 20 Year 0.125% of the MGAB Charge Base (0.50% annually) ----------------- ----------------------------------------------- The MGAB Charge Base is the total of (i) the MGAB Base on the rider date and (ii) premiums during the 2-year period commencing on the rider date, reduced pro-rata for withdrawals and reduced for transfers made within the last 3 years prior to the MGAB Benefit Date. We will deduct charges only during your ten-year or twenty-year waiting period, as applicable. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and MGAB Charge Base immediately prior to the surrender or annuitization. The MGAB Charge Base is adjusted for transfers between Special and Non-Special Funds or Excluded Funds. MINIMUM GUARANTEED INCOME BENEFIT (MGIB). The quarterly charge for the MGIB rider is as follows: ------------- ----------------------------------------------- MGIB Rate Quarterly Charge ------------- ----------------------------------------------- 7% 0.125% of the MGIB Charge Base (0.50% annually) ------------- ----------------------------------------------- The MGIB Charge Base is the total of premiums paid more than 5 years before the earliest MGIB Benefit Date, reduced pro-rata for all withdrawals taken while the MGIB rider is in effect, and accumulated at the MGIB Rate (7%) to the earlier of age 80 and reaching the MGIB Base Maximum. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your MGIB Charge Base immediately prior to the surrender or annuitization. The MGIB Charge Base is adjusted for transfers between Special and Non-Special Funds or Excluded Funds. MINIMUM GUARANTEED WITHDRAWAL BENEFIT (MGWB). The quarterly charge for the MGWB rider is 0.125% (0.50% annually) of the original MGWB Eligible Payment Amount. The original MGWB Eligible Payment Amount is equal to all premiums paid during the first two contract years following the rider date. When we calculate the MGWB rider charge, we do not reduce the Eligible Payment Amount by the amount of any withdrawals taken while the MGWB rider is in effect. We will deduct charges only during the period before your Contract's Automatic Periodic Benefit Status. If you surrender or annuitize your Contract, we will deduct a pro-rata portion of the charge for the current quarter based on the current quarterly charge rate and your original MGWB Eligible Payment Amount immediately prior to the surrender or annuitization. OPTIONAL RIDER BENEFITS MINIMUM GUARANTEED INCOME BENEFIT (MGIB) RIDER. The MGIB rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Benefit Date, regardless of fluctuating market conditions. The amount of the Minimum Guaranteed Income Benefit will depend on the amount of premiums you pay during the five contract years after you purchase the rider, the amount of contract value you allocate or transfer to Special Funds or Excluded Funds, the MGIB Rate, the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the MGIB benefit. For Contracts issued on or after May 1, 2003, the following investment options are designated as Special Funds: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFunds VP Rising Rates Opportunity Portfolio, the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued before May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued before September 2, 2003, the ProFunds VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. For a discussion of the charges we deduct under the MGIB rider, see "Optional Rider Charges." Ordinarily, the amount of income that will be available to you on the annuity start date is based on your contract value, the annuity option you selected and the guaranteed or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Benefit Date is the greatest of: (i) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the guaranteed income factors specified in your Contract for the annuity option you selected; (ii) your annuity income based on your contract value adjusted for any Market Value Adjustment (see the ING USA Fixed Account prospectus) on the MGIB Benefit Date applied to the then current income factors in effect for the annuity option you selected; and (iii)the MGIB annuity income based on your MGIB Benefit Base on the MGIB Benefit Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust the MGIB Benefit Base for any premium tax recovery and Market Value Adjustment (see the ING USA Fixed Account prospectus) that would otherwise apply at annuitization. Prior to your latest annuity start date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Benefit Date. We require a 10-year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30-day period prior to the end of the waiting period or any subsequent contract anniversary. At your request, the Company may in its discretion extend the latest contract annuity start date without extending the MGIB Benefit Date. DETERMINING THE MGIB ANNUITY INCOME. On the MGIB Benefit Date, we calculate your MGIB annuity income as follows: 1. WE FIRST DETERMINE YOUR MGIB BENEFIT BASE. The MGIB Benefit Base is only a calculation used to determine the MGIB. The MGIB Benefit Base does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of contract value under provisions of the Contract or other riders will not increase the MGIB Base or MGIB Base Maximum. The MGIB Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of eligible premium (or contract value) and subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The MGIB Benefit Base equals the lesser of (a) and (b) where: a) is the Maximum MGIB Base; and b) is the sum of: 1) the MGIB Base allocated to Covered Funds; 2) the MGIB Base allocated to Special Funds; and 3) the contract value allocated to Excluded Funds. The Maximum MGIB Base is 200% of eligible premiums, adjusted pro-rata for withdrawals. The Maximum MGIB Base is not allocated by Fund category. The MGIB Base allocated to Covered Funds equals the eligible premiums allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the Maximum MGIB Base, and at 0% thereafter. The MGIB Base allocated to Special Funds equals the eligible premiums allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. THERE IS NO ACCUMULATION OF MGIB BASE ALLOCATED TO SPECIAL FUNDS. The MGIB Base allocated to Excluded Funds equals the eligible premiums allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Base reaching the Maximum MGIB Base, and at 0% thereafter. THE MGIB BASE ALLOCATED TO EXCLUDED FUNDS IS USED ONLY FOR TRANSFER ADJUSTMENTS AND RIDER CHARGES. IT IS NOT USED TO DETERMINE BENEFITS. Eligible premiums are those added more than 5 years before the earliest MGIB Benefit Date. Premiums paid after that are excluded from the MGIB Base. The MGIB Rate is currently 7%. We may, at our discretion, discontinue offering this rate. The MGIB Rate is an annual effective rate. Withdrawals reduce the MGIB Base on a pro-rata basis. The percentage reduction in the MGIB Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. For example, the value of the MGIB Base in Covered Funds after a withdrawal from one or more Covered Funds equals the value of the MGIB Base in Covered Funds before the withdrawal times the contract value in Covered Funds after the withdrawal divided by the contract value in Covered Funds before the withdrawal. Net transfers from Covered Funds will reduce the MGIB Base allocated to Covered Funds on a pro-rata basis. The resulting increase in the MGIB Base allocated to Special or Excluded Funds, as applicable, will equal the reduction in the MGIB Base allocated to Covered Funds. Net transfers from Special Funds will reduce the MGIB Base allocated to Special Funds on a pro-rata basis. The resulting increase in the MGIB Base allocated to Covered or Excluded Funds, as applicable, will equal the reduction in the MGIB Base allocated to Special Funds. Net transfers from Excluded Funds will reduce the MGIB Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in the MGIB Base allocated to Covered or Special Funds, as applicable, will equal the lesser of the net contract value transferred and the change in the MGIB Base allocated to Excluded Funds. 2. THEN WE DETERMINE THE MGIB ANNUITY INCOME BY MULTIPLYING YOUR MGIB BENEFIT BASE (ADJUSTED FOR ANY MARKET VALUE ADJUSTMENT AND PREMIUM TAXES) BY THE APPLICABLE INCOME FACTOR, AND THEN DIVIDING BY $1,000. The MGIB Income Options are available under the MGIB Rider: (i) Income for Life (Single Life or Joint with 100% Survivor) and 10-30 Year Certain; (ii) Income for a 20-30 Year Period Certain; or (iii)Any other income plan offered by the Company in connection with the MGIB rider on the MGIB Benefit Date. On the MGIB Benefit Date, we would apply the MGIB Benefit Base under the Table of Income Factors specified in the MGIB rider for the Income Option you selected. The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed factors found in your Contract. Then we compare the MGIB annuity income under the rider guarantee for the option selected with the annuity income under your Contract for the same option. The greater amount of income will be available to you on the MGIB Benefit Date. PURCHASE. To purchase the MGIB rider, you must be age 79 or younger on the rider date and the ten-year waiting period must end at or prior to the latest annuity start date. The MGIB rider must be purchased (i) on the contract date, or (ii) within thirty days after the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. There is a ten-year waiting period before you can annuitize under the MGIB rider. THE MGIB BENEFIT DATE. If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Benefit Date is the contract anniversary on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. If you added the MGIB rider at any other time, your MGIB Benefit Date is the contract anniversary at least 10 years after the rider date when you decide to exercise your right to annuitize under the MGIB rider. NO CHANGE OF ANNUITANT. Once the MGIB rider is purchased, the annuitant may not be changed except for the following exception. If an annuitant who is not a contract owner dies prior to annuitization, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Base is unaffected and continues to accumulate. NOTIFICATION. On or about 30 days prior to the MGIB Benefit Date, we will provide you with notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise. The actual amount of the MGIB annuity benefit will be determined as of the MGIB Benefit Date. THE MGIB RIDER DOES NOT RESTRICT OR LIMIT YOUR RIGHT TO ANNUITIZE THE CONTRACT AT ANY TIME PERMITTED UNDER THE CONTRACT. THE MGIB RIDER DOES NOT RESTRICT YOUR RIGHT TO ANNUITIZE THE CONTRACT USING CONTRACT VALUES THAT MAY BE HIGHER THAN THE MGIB ANNUITY BENEFIT. THE BENEFITS ASSOCIATED WITH THE MGIB RIDER ARE AVAILABLE ONLY IF YOU ANNUITIZE YOUR CONTRACT UNDER THE RIDER AND IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. ANNUITIZING USING THE MGIB MAY RESULT IN THE MORE FAVORABLE STREAM OF INCOME PAYMENTS, AND DIFFERENT TAX CONSEQUENCES, UNDER YOUR CONTRACT. BECAUSE THE MGIB RIDER IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT IT GUARANTEES MAY BE LESS THAN THE LEVEL THAT MIGHT BE PROVIDED BY THE APPLICATION OF YOUR CONTRACT VALUE TO THE CONTRACT'S APPLICABLE ANNUITY FACTORS. YOU SHOULD CONSIDER ALL OF YOUR OPTIONS AT THE TIME YOU BEGIN THE INCOME PHASE OF YOUR CONTRACT. - -------------------------------------------------------------------------------- APPENDIX L - -------------------------------------------------------------------------------- OPTIONAL RIDER BENEFIT CHARGES AND OPTIONAL BENEFIT RIDERS FOR MAY-2002 AND YR-2003 CONTRACT OWNERS The following is a description of the Minimum Guaranteed Accumulation Benefit and the Minimum Guaranteed Withdrawal Benefit for May-2002 and Yr-2003 contract owners who elected an optional rider benefit. OTHER THAN AS SPECIFIED BELOW, PLEASE SEE THE PROSPECTUS FOR A COMPLETE DESCRIPTION OF YOUR OPTIONAL RIDER BENEFITS. CAPITALIZED TERMS HAVE THE SAME MEANING AS DESCRIBED IN THE PROSPECTUS. OPTIONAL RIDER CHARGES Minimum Guaranteed Accumulation Benefit rider:*
----------------- --------------------------------- ------------------------------- Waiting Period As an Annual Charge As a Quarterly Charge ----------------- --------------------------------- ------------------------------- 10 Year 0.65% of the MGAB Charge Base 0.1625% of the MGAB Charge Base 20 Year 0.65% of the MGAB Charge Base 0.1625% of the MGAB Charge Base ----------------- --------------------------------- -------------------------------
* The MGAB Charge Base is the total of premiums added during the two-year period commencing on the rider date if you purchase the rider on the contract date, or, your contract value on the rider date plus premiums added during the two-year period commencing on the rider date if you purchased the rider after the contract date, reduced pro-rata for all withdrawals taken while the MGAB rider is in effect, and reduced pro-rata for transfers made during the three year period before the MGAB Date. The MGAB Charge Base is tracked separately for Covered, Special and Excluded Funds, based on initial allocation of premium (or contract value), subsequent allocation of eligible premium, withdrawals and transfers. Withdrawals and transfers may reduce the applicable MGAB Charge Base by more than the amount withdrawn or transferred. Minimum Guaranteed Withdrawal Benefit rider: ------------------------ --------------------------------------------- As an Annual Charge As a Quarterly Charge ------------------------ --------------------------------------------- 0.65% of contract value 0.1625% of the MGWB Eligible Payment Amount** ------------------------ --------------------------------------------- ** The MGWB Eligible Payment Amount is (i) the total of premiums and credit paid during the 2-year period commencing on the rider date if you purchase the rider on the contract date; or (ii) your contract value on the rider date plus subsequent premiums and credits applied during the two-year period commencing on the rider date. OPTIONAL RIDER BENEFITS MINIMUM GUARANTEED ACCUMULATION BENEFIT RIDER (MGAB). The MGAB rider is an optional benefit which provides you with an MGAB intended to guarantee a minimum contract value at the end of a specified waiting period. Only premiums added to your Contract during the first two-year period after your rider date are included in the MGAB Base. Any additional premium payments added after the second rider anniversary are not included in the MGAB Base. Thus, the MGAB rider may not be appropriate for you if you plan to add substantial premium payments after your second rider anniversary The MGAB is a one-time adjustment to your contract value if your contract value on the MGAB Date is less than the MGAB Base. The MGAB Date is the next business day after the applicable waiting period. We calculate your Minimum Guaranteed Accumulation Benefit on this date. The MGAB rider may offer you protection if your Contract loses value during the MGAB waiting period. For a discussion of the charges we deduct under the MGAB rider, see "Optional Rider Charges." The MGAB rider offers a ten-year option and a twenty-year option, of which you may purchase only one. The ten-year option has a waiting period of ten years and, other than for allocations to Excluded Funds and certain transfers, guarantees that your contract value at the end of ten years will at least equal your initial premium payment, reduced pro-rata for withdrawals. Transfers made within 3 years prior to the MGAB Date will also reduce the MGAB Base pro-rata. The twenty-year option has a waiting period of twenty years and, other than allocations to Special Funds or Excluded Funds, guarantees that your contract value at the end of twenty years will at least equal two times your initial premium payment, reduced pro-rata for withdrawals and reduced for transfers made within 3 years prior to the MGAB Date. If you add the 20 year option rider after the contract date, any payment of premiums after the rider date, and/or investments in the Special or Excluded Funds, may prevent the MGAB Base from doubling over the waiting period. CALCULATING THE MGAB. We calculate your MGAB as follows: 1) WE FIRST DETERMINE YOUR MGAB BASE. The MGAB Base is only a calculation used to determine the MGAB. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your annuity income, cash surrender value and death benefits. The MGAB Base is tracked separately for Covered, Special and Excluded Funds, based on the initial allocation of premium (or contract value), subsequently allocated eligible premiums, withdrawals and transfers. Contract value is used as the initial value if the rider is added after the contract date. The aggregate MGAB Base is used to determine the MGAB on the MGAB Date. The aggregate MGAB Base equals the sum of: a) the MGAB Base allocated to Covered Funds; b) the MGAB Base allocated to Special Funds; and c) the LESSER OF the contract value allocated to Excluded Funds or MGAB Base allocated to Excluded Funds. No investment options are currently designated as Special Funds for the ten-year MGAB. The following investment options are designated as Special Funds for the twenty-year MGAB: the ING Liquid Assets Portfolio; the ING Limited Maturity Bond Portfolio; the ING VP Bond Portfolio; the ING PIMCO Core Bond Portfolio; the ProFund VP Rising Rates Opportunity Portfolio; the Fixed Account; the Fixed Interest Division; and the TSA Special Fixed Account. For Contracts issued prior to May 1, 2003, the ING VP Bond Portfolio and the ING PIMCO Core Bond Portfolio are not designated as Special Funds. For Contracts issued prior to September 2, 2003, the ProFund VP Rising Rates Opportunity Portfolio is not designated as a Special Fund. No investment options are currently designated as Excluded Funds. The MGAB Base for both the Covered Funds and the Excluded Funds equals the allocated eligible premiums, adjusted for subsequent withdrawals and transfers, accumulated until the MGAB Date at 0% for the ten-year MGAB and 3.5265% for the twenty-year MGAB. The MGAB Base for Special Funds equals the allocated eligible premiums, adjusted for subsequent withdrawals and transfers. There is no accumulation of MGAB Base for Special Funds for either the ten-year or twenty-year MGAB. If you purchased the MGAB optional benefit rider after the contract date, your MGAB Base equals your allocated contract value, plus premiums added during the two-year period after your rider date, accumulated at the appropriate MGAB rate described above, and adjusted for withdrawals and transfers. We use the MGAB Charge Base to determine the periodic MGAB rider charges. The MGAB Charge Base equals the eligible premiums, adjusted for subsequent withdrawals and transfers, as allocated by fund category. The MGAB Charge Base is tracked separately for Covered, Special and Excluded Funds, and separate rates may apply to each. Currently, the same deduction method and rate apply to all categories. Withdrawals reduce the MGAB Base and MGAB Charge Base on a pro-rata basis. The percentage reduction in the MGAB Base and MGAB Charge Base for each Fund category (i.e. Covered, Special or Excluded) equals the percentage reduction in contract value in that Fund category resulting from the withdrawal. Net Transfers from Covered Funds or Special Funds to Excluded Funds reduce the MGAB Base and MGAB Charge Base allocated to Covered Funds or Special Funds on a pro-rata basis. Any resulting increase in MGAB Base and MGAB Charge Base allocated to Excluded Funds will equal the reduction in the MGAB Base and MGAB Charge Base allocated to Covered Funds or Special Funds. There will be no such increase if the transfer occurs within 3 years of the MGAB Date. Net Transfers from Excluded Funds to other funds reduce the MGAB Base and MGAB Charge Base allocated to Excluded Funds on a pro-rata basis. The resulting increase in MGAB Base and MGAB Charge Base allocated to other funds will equal the LESSER OF the contract value transferred and the change in the MGAB Base and MGAB Charge Base allocated to Excluded Funds. There will be no such increase if the transfer occurs within 3 years of the MGAB Date. Any transfer within 3 years of the MGAB Date (regardless of the funds involved) reduces the MGAB Base and MGAB Charge Base for Covered, Special or Excluded Funds, as applicable, on a pro-rata basis, based on the percentage of contract value transferred, without any corresponding increase. 2) WE THEN SUBTRACT YOUR CONTRACT VALUE ON THE MGAB DATE FROM YOUR AGGREGATE MGAB BASE. The contract value that we subtract includes both the contract value in the subaccounts in which you are invested and the contract value in your Fixed Interest Allocations, if any. 3) ANY POSITIVE DIFFERENCE IS YOUR MGAB. If there is a MGAB, we will automatically credit it on the MGAB Date to the subaccounts in which you are invested pro-rata based on the proportion of your contract value in the subaccounts on that date, unless you have previously given us other allocation instructions. If you do not have an investment in any subaccount on the MGAB Date, we will allocate the MGAB to the Liquid Assets subaccount on your behalf. After we credit the MGAB, the amount of your annuity income, cash surrender value and death benefits will reflect the crediting of the MGAB to your contract value to the extent the contract value is used to determine such value. PURCHASE. To purchase the MGAB rider, you must be age 80 or younger on the Rider Date if you choose the ten-year option and age 65 or younger on the rider date if you choose the twenty-year option. The waiting period must end at or before your annuity start date. The MGAB rider may be purchased (i) on the contract date, and (ii) within 30 days following the contract date. For contracts issued more than 30 days before the date this rider first became available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. THE MGAB DATE. If you purchased the MGAB rider on the contract date or added the MGAB rider within 30 days following the contract date, the MGAB Date is your 10th contract anniversary for the ten-year option or 20th contract anniversary for the twenty-year option. If you added the MGAB rider during the 30-day period preceding your first contract anniversary after the date of this prospectus, your MGAB Date will be the first contract anniversary occurring after 10 years (for the ten-year option) or 20 years (for the twenty-year option) after the rider date. The MGAB rider is not available if the MGAB Date would fall beyond the latest annuity start date. CANCELLATION. If you elected the twenty-year option, you have a one-time right to cancel the MGAB rider on your first contract anniversary that is at least 10 years after the rider date. If you purchased the MGAB rider during the 30-day period following the contract date, your one-time right to cancel the rider occurs on the tenth anniversary of your contract date. To cancel, you need to send written notice to our Customer Service Center at least 30 days before such anniversary date. If you terminate the MGAB rider before the MGAB Date, we will not credit you with the MGAB and we will assess the pro-rata portion of the MGAB rider charge for the current quarter. NOTIFICATION. We will report any crediting of the MGAB in your first quarterly statement following the MGAB Date. MINIMUM GUARANTEED WITHDRAWAL BENEFIT RIDER (MGWB). The MGWB rider is an optional benefit which guarantees that if your contract value is reduced to zero you will receive periodic payments equal to all premium payments paid during the first two contract years (Eligible Payment Amount) adjusted for any prior withdrawals. To maintain this guarantee, withdrawals in any contract year may not exceed 7% of your adjusted Eligible Payment Amount. If your contract value is reduced to zero, your periodic payments will be 7% of your Eligible Payment Amount every year. Payments continue until your MGWB Withdrawal Account is reduced to zero. For a discussion of the charges we deduct under the MGWB rider, see "Charges and Fees -- Optional Rider Charges." Each payment you receive under the MGWB rider will be taxed as a withdrawal and may be subject to a penalty tax. See "Withdrawals" and "Federal Tax Considerations" for more information. Your original Eligible Payment Amount depends on when you purchase the MGWB rider and equals: 1) your premium payments received during the first two contract years, if you purchased the MGWB rider on the contract date; 2) otherwise, your contract value on the rider date, including any premiums received that day, and any subsequent premium payments received during the two-year period commencing on the rider date, if you purchased the MGWB rider after the contract date. THE MGWB WITHDRAWAL ACCOUNT. The MGWB Withdrawal Account is only a calculation which represents the remaining amount available for periodic payments. It does not represent a contract value, nor does it guarantee performance of the subaccounts in which you are invested. It will not affect your annuitization, surrender and death benefits. The MGWB Withdrawal Account is equal to the Eligible Payment Amount, tracked separately for Covered and Excluded Funds, adjusted for any withdrawals and transfers between Covered and Excluded Funds. THE MGWB WITHDRAWAL ACCOUNT EQUALS THE SUM OF (A) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO COVERED FUNDS, AND (B) THE LESSER OF (I) THE MGWB WITHDRAWAL ACCOUNT ALLOCATED TO EXCLUDED FUNDS AND (II) THE CONTRACT VALUE IN EXCLUDED FUNDS. THUS, INVESTING IN THE EXCLUDED FUNDS MAY LIMIT THE MGWB WITHDRAWAL ACCOUNT. No investment options are currently designated as Excluded Funds for the Minimum Guaranteed Withdrawal Benefit. Withdrawals of up to 7% per year of the Eligible Payment Amount will reduce the value of your MGWB Withdrawal Account by the dollar amount of the withdrawal for Covered Funds and pro rata for Excluded Funds, based on the source of the withdrawal. Any withdrawals greater than the 7% per year of the Eligible Payment Amount will cause a reduction in the MGWB Withdrawal Account of the Covered and Excluded Funds, by the proportion that the withdrawal bears to the contract value in Covered and Excluded Funds, respectively, at the time of the withdrawal. If a single withdrawal involves both Covered and Excluded Funds and exceeds 7%, the withdrawal will be treated as taken first from Covered Funds. Any withdrawals greater than 7% per year of the Eligible Payment Amount will also cause a reduction in the Eligible Payment Amount by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. Once your contract value is zero, any periodic payments paid under the MGWB rider also reduce the MGWB Withdrawal Account. If a withdrawal reduces the MGWB Withdrawal Account to zero, the MGWB rider terminates and no further benefits are payable under the rider. Net transfers from Covered Funds to Excluded Funds will reduce the MGWB Withdrawal Account allocated to Covered Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Excluded Funds equals the reduction in the MGWB Withdrawal Account for Covered Funds. Net transfers from Excluded Funds to Covered Funds will reduce the MGWB Withdrawal Account allocated to Excluded Funds on a pro rata basis. The resulting increase in the MGWB Withdrawal Account allocated to Covered Funds will equal the lesser of the reduction in the MGWB Withdrawal Account for Excluded Funds or the net contract value transferred. GUARANTEED WITHDRAWAL STATUS. You may continue to make withdrawals in any amount permitted under your Contract so long as your contract value is greater than zero. See "Withdrawals." However, making any withdrawals in any year greater than 7% per year of the Eligible Payment Amount will reduce the Eligible Payment Amount for future withdrawals and payments under the MGWB rider by the proportion that the withdrawal bears to the contract value at the time of the withdrawal. The MGWB rider will remain in force and you may continue to make withdrawals each year so long as: 1) your contract value is greater than zero; 2) your MGWB Withdrawal Account is greater than zero; 3) you have not reached your latest allowable annuity start date; 4) you have not elected to annuitize your Contract; and 5) you have not died (unless your spouse has elected to continue the Contract), changed the ownership of the Contract or surrendered the Contract. The standard Contract provision limiting withdrawals to no more than 90% of the cash surrender value is not applicable under the MGWB rider. AUTOMATIC PERIODIC BENEFIT STATUS. Under the MGWB rider, in the event your contract value is reduced to zero, your Contract is given Automatic Periodic Benefit Status, if: 1) your MGWB Withdrawal Account is greater than zero; 2) you have not reached your latest allowable annuity start date; 3) you have not elected to annuitize your Contract; and 4) you have not died, changed the ownership of the Contract or surrendered the Contract. Once your Contract is given Automatic Periodic Benefit Status, we will pay you the annual MGWB periodic payments, beginning on the next contract anniversary. These payments are equal to the lesser of the remaining MGWB Withdrawal Account or 7% annually of your Eligible Payment Amount, until the earliest of (i) your Contract's latest annuity start date, (ii) the death of the owner; or (iii) your MGWB Withdrawal Account is exhausted. We will reduce the MGWB Withdrawal Account by the amount of each payment. Once your Contract is given Automatic Periodic Benefit Status, we will not accept any additional premium payments in your Contract and the Contract will not provide any benefits except those provided by the MGWB rider. Any other rider terminates. Your Contract will remain in Automatic Periodic Benefit Status until the earliest of (i) payment of all MGWB periodic payments, (ii) payment of the Commuted Value (defined below) or (iii) the owner's death. On the Contract's latest annuity start date, in lieu of making the remaining MGWB periodic payments, we will pay you the Commuted Value of your MGWB periodic payments remaining. We may, at our option, extend your annuity start date in order to continue the MGWB periodic payments. The Commuted Value is the present value of any then-remaining MGWB periodic payments at the current interest rate plus 0.50%. The current interest rate will be determined by the average of the Ask Yields for U.S. Treasury STRIPS as quoted by a national quoting service for period(s) applicable to the remaining payments. Once we pay you the last MGWB periodic payment or the Commuted Value, your Contract and the MGWB rider terminate. DEATH BENEFIT DURING AUTOMATIC PERIODIC BENEFIT STATUS. The death benefit payable during Automatic Periodic Benefit Status is your MGWB Withdrawal Account which equals the sum of the remaining MGWB periodic payments. PURCHASE. To purchase the MGWB rider, you must be age 80 or younger on the Rider Date. The MGWB rider must be purchased (i) on the contract date, or (ii) within 30 days after the contract date. If the rider is not yet available in your state, the Company may in its discretion allow purchase of this rider during the 30-day period preceding the first contract anniversary after the date of this prospectus, or the date of state approval, whichever is later. ING [LOGO] ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA Annuity and Life Insurance Company is a stock company domiciled in Iowa. - -------------------------------------------------------------------------------- WF Landmark 02/XX/2004 PART B Statement of Additional Information GOLDENSELECT LANDMARK DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY CONTRACT ISSUED BY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY This Statement of Additional Information is not a prospectus. The information contained herein should be read in conjunction with the Prospectus for the ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) Deferred Variable Annuity Contract, which is referred to herein. The Prospectus sets forth information that a prospective investor ought to know before investing. For a copy of the Prospectus, send a written request to ING USA Annuity and Life Insurance Company, Customer Service Center, P.O. Box 9271 Des Moines, IA 50306-9271 or telephone 1-800-366-0066. DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION: February XX, 2004 TABLE OF CONTENTS Item Page Introduction.............................................................. Description of ING USA Annuity and Life Insurance Company................. Separate Account B ....................................................... Safekeeping of Assets .................................................... The Administrator......................................................... Independent Auditors...................................................... Distribution of Contracts................................................. Performance Information................................................... IRA Partial Withdrawal Option............................................. Other Information......................................................... Financial Statements of ING USA Annuity and Life Insurance Company........ Financial Statements of Separate Account B................................ i Introduction This Statement of Additional Information provides background information regarding Separate Account B. Description of ING USA Annuity and Life Insurance Company ING USA Annuity and Life Insurance Company, formerly Golden American Life Insurance Company ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings, Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. Golden American's consolidated financial statements appear in the Statement of Additional Information. As of December 31, 2002, ING USA had approximately $999.1 million in stockholder's equity and approximately $17.6 billion in total assets, including approximately $11 billion of separate account assets. ING USA is authorized to do business in all jurisdictions except New York. ING USA offers variable insurance products. ING USA formed a subsidiary, First Golden American Life Insurance Company of New York ("First Golden"), which was licensed to do variable annuity business in the states of New York and Delaware. First Golden was merged into ReliaStar Life Insurance Company of New York, another wholly owned subsidiary of ING and an affiliate, on April 1, 2002. Separate Account B Separate Account B is a separate account established by the Company for the purpose of funding variable annuity contracts issued by the Company. The separate account is registered with the Securities and Exchange Commission (SEC) as a unit investment trust under the Investment Company act of 1940, as amended. Purchase payments to accounts under the contract may be allocated to one or more of the subaccounts. Each subaccount invests in the shares of only one of the funds offered under the contracts. We may make additions to, deletions from or substitutions of available investment options as permitted by law and subject to the conditions of the contract. The availability of the funds is subject to applicable regulatory authorization. Not all funds are available in all jurisdictions or under all contracts. Safekeeping of Assets ING USA acts as its own custodian for Separate Account B. The Administrator Effective January 1, 1997, Equitable and ING USA(formerly Golden American) became parties to a service agreement pursuant to which Equitable Life agreed to provide certain accounting, actuarial, tax, underwriting, sales, management and other services to ING USA. Expenses incurred by Equitable Life in relation to this service agreement were reimbursed by ING USA on an allocated cost basis. Equitable Life billed ING USA $570,000 and $309,000 pursuant to the service agreement in 2002 and 2001, respectively. Independent Auditors Ernst & Young LLP, independent auditors, performs annual audits of ING USA and Separate Account B. 1 Distribution of Contracts The offering of contracts under the prospectus associated with this Statement of Additional Information is continuous. Directed Services, Inc. ("DSI"), an affiliate of ING USA, acts as the principal underwriter (as defined in the Securities Act of 1933 and the Investment Company Act of 1940, as amended) of the variable insurance products (the "variable insurance products") issued by ING USA. The contracts are distributed through registered representatives of other broker-dealers who have entered into selling agreements with DSI. For the years ended 2002, 2001 and 2000 commissions paid by ING USA, including amounts paid by its affiliated Company, ReliaStar Life Insurance Company of New York, to DSI aggregated $287,208,000, $223,321,000 and $208,883,000, respectively. All commissions received by the distributor were passed through to the broker-dealers who sold the contracts. DSI is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478. Under a management services agreement, last amended in 1995, ING USA provides to DSI certain of its personnel to perform management, administrative and clerical services and the use of certain facilities. ING USA charges DSI for such expenses and all other general and administrative costs, first on the basis of direct charges when identifiable, and the remainder allocated based on the estimated amount of time spent by ING USA's employees on behalf of DSI. In the opinion of management, this method of cost allocation is reasonable. This fee, calculated as a percentage of average assets in the variable separate accounts, was $25,914,000, $23,138,000, and $21,296,000 for the years ended 2002, 2001, and 2000, respectively. Performance Information Performance Information for the subaccounts of Separate Account B, including yields, standard annual returns and other non-standard measures of performance of all subaccounts, may appear in reports or promotional literature to current or prospective owners. Such non-standard measures of performance will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Negative values are denoted by minus signs ("-"). Performance Information for measures other than total return does not reflect any applicable premium tax that can range from 0% to 3.5%. As described in the prospectus, three death benefit options are available. The following performance values reflect the election at issue of the Max 7 Enhanced Death Benefit, thus providing values reflecting the highest aggregate contract charges. In addition, the performance values reflect the selection of the most costly optional benefit rider. If one of the other death benefit options had been elected, or if another optional benefit rider or no rider had been elected, the historical performance values would be higher than those represented in the examples. SEC Standard Money Market Subaccount Yields Current yield for the Liquid Assets Subaccount will be based on the change in the value of a hypothetical investment (exclusive of capital changes or income other than investment income) over a particular 7-day period, less a pro rata share of subaccount expenses which includes deductions for the mortality and expense risk charge and the administrative charge accrued over that period (the "base period"), and stated as a percentage of the investment at the start of the base period (the "base period return"). The base period return is then annualized by multiplying by 365/7, with the resulting yield figure carried to at least the nearest hundredth of one percent. Calculation of "effective yield" begins with the same "base period return" used in the calculation of yield, which is then annualized to reflect weekly compounding pursuant to the following formula: Effective Yield = [(Base Period Return) +1)365/7] - 1 The current yield and effective yield of the Liquid Assets Subaccount for the 7-day period December 25, 2002 to December 31, 2002 were -1.05% and -1.04% respectively. 2 SEC Standard 30-Day Yield for Non-Money Market Subaccounts Quotations of yield for the remaining subaccounts will be based on all investment income per subaccount earned during a particular 30-day period, less expenses accrued during the period ("net investment income"), and will be computed by dividing net investment income by the value of an accumulation unit on the last day of the period, according to the following formula: Yield = 2 x [((a - b)/(c x d) + 1)6 - 1] Where: [a] equals the net investment income earned during the period by the investment portfolio attributable to shares owned by a subaccount [b] equals the expenses accrued for the period (net of reimbursements) [c] equals the average daily number of units outstanding during the period based on the accumulation unit value [d] equals the value (maximum offering price) per accumulation unit value on the last day of the period Yield on subaccounts of Separate Account B is earned from the increase in net asset value of shares of the investment portfolio in which the subaccount invests and from dividends declared and paid by the investment portfolio, which are automatically reinvested in shares of the investment portfolio. SEC Standard Average Annual Total Return for All Subaccounts Quotations of average annual total return for any subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a contract over a period of one, five and 10 years (or, if less, up to the life of the subaccount), calculated pursuant to the formula: P(1+T)(n)=ERV Where: (1) [P] equals a hypothetical initial premium payment of $1,000 (2) [T] equals an average annual total return (3) [n] equals the number of years (4) [ERV] equals the ending redeemable value of a hypothetical $1,000 initial premium payment made at the beginning of the period (or fractional portion thereof) All total return figures reflect the deduction of the maximum sales load; the administrative charges, the mortality and expense risk charges and maximum optional benefit rider charge. The Securities and Exchange Commission (the "SEC") requires that an assumption be made that the contract owner surrenders the entire contract at the end of the one, five and 10 year periods (or, if less, up to the life of the security) for which performance is required to be calculated. This assumption may not be consistent with the typical contract owner's intentions in purchasing a contract and may adversely affect returns. Quotations of total return may simultaneously be shown for other periods, as well as quotations of total return that do not take into account certain contractual charges such as sales load. Except for the subaccounts which had not commenced operations as of December 31, 2002, Average Annual Total Return for the Subaccounts presented on a standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, administrative charges of 0.15%, contract administration charge annualized at 0.04%, living benefit rider charge annualized at 1.14%, the earnings multiplier benefit rider charge annualized at 0.30%, for the year ending December 31, 2002 were as follows: 3 Average Annual Total Return for Periods Ending 12/31/02-Standardized with Rider Charges
Inception 1 Year 5 Year 10 Year Inception Date - ---------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trend -40.38 n/a n/a -28.01 12-Oct-01 Fidelity VIP Equity-Income Portfolio -25.65 n/a n/a -21.24 13-Jul-01 Fidelity VIP Growth Portfolio -38.47 n/a n/a -32.57 13-Jul-01 ING AIM Capital Mid Cap Growth Portfolio -39.83 -8.62 n/a -1.68 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -38.25 -9.66 n/a -1.36 01-Apr-96 ING Capital Guardian Large Cap Value Portfolio -32.15 n/a n/a -12.54 01-Feb-00 ING Capital Guardian Managed Global Portfolio -28.62 1.89 1.60 1.50 21-Oct-92 ING Capital Guardian Small Cap Portfolio -33.72 -1.12 n/a 2.45 02-Jan-96 ING Developing World Portfolio -19.37 n/a n/a -10.96 19-Feb-98 ING Eagle Asset Value Equity Portfolio -25.57 -5.51 n/a 3.65 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -27.79 n/a n/a -17.11 02-Oct-00 ING Goldman Sachs Internet Tollkeeper (SM) Portfolio -46.12 n/a n/a -42.28 01-May-01 ING Hard Assets Portfolio -8.14 -9.08 2.81 0.72 25-Jan-89 ING International Equity Portfolio -24.69 -7.84 n/a -6.35 01-Apr-96 ING Janus Growth and Income Portfolio -27.86 n/a n/a -18.10 02-Oct-00 ING Janus Special Equity Portfolio -34.23 n/a n/a -23.75 02-Oct-00 ING Jennison Equity Opportunities Portfolio -37.47 -8.88 1.64 2.35 04-May-92 ING JP Morgan Fleming International Enhanced EAFE Portfolio n/a n/a n/a -24.70 01-May-02 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -28.46 01-May-02 Portfolio ING Limited Maturity Bond Portfolio -1.89 3.23 2.81 3.54 25-Jan-89 ING Liquid Assets Portfolio -7.53 1.18 1.26 1.76 25-Jan-89 ING Marsico Growth Portfolio -37.77 -5.66 n/a -0.73 01-Apr-96 ING Mercury Focus Value Portfolio n/a n/a n/a -23.27 01-May-02 ING Mercury Fundamental Growth Portfolio n/a n/a n/a -27.19 01-May-02 ING MFS Mid Cap Growth Portfolio -56.52 -4.25 n/a 4.48 07-Oct-94 ING MFS Research Portfolio -33.19 -5.82 n/a 3.67 07-Oct-94 ING MFS Total Return Portfolio -13.92 2.00 n/a 6.67 07-Oct-94 ING PIMCO Core Bond Portfolio -0.50 -0.30 n/a 1.25 07-Oct-94 ING Salomon Brothers All Cap Portfolio -33.88 n/a n/a -8.33 01-Feb-00 ING Salomon Brothers Investors Portfolio -31.36 n/a n/a -10.26 01-Feb-00 ING T. Rowe Price Capital Appreciation -8.47 5.64 6.23 5.94 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -21.80 -1.71 2.82 3.59 25-Jan-89 ING UBS US Balanced Portfolio -23.35 n/a n/a -16.96 02-Oct-00 ING Van Kampen Equity Growth Portfolio n/a n/a n/a -28.71 01-May-02 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -18.53 01-May-02 ING Van Kampen Growth and Income Portfolio -23.33 -3.54 n/a 5.12 04-Oct-93 ING Van Kampen Real Estate Portfolio -8.73 0.24 7.91 5.96 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a -0.70 01-May-02 ING VP Growth Opportunities Portfolio -39.65 n/a n/a -37.21 01-May-01 ING VP MagnaCap Portfolio -31.35 n/a n/a -23.44 01-May-01 ING VP SmallCap Opportunities Portfolio -51.57 n/a n/a -42.44 01-May-01 ING VP Worldwide Growth Portfolio -33.13 n/a n/a -25.54 01-May-00 INVESCO VIF - Financial Services Fund -23.46 n/a n/a -20.27 13-Jul-01 INVESCO VIF - Health Sciences Fund -32.77 n/a n/a -21.78 13-Jul-01 INVESCO VIF - Utilities Fund -28.77 n/a n/a -31.76 13-Jul-01 INVESCO VIF Leisure Fund n/a n/a n/a -22.57 01-May-02 PIMCO High Yield Portfolio -10.12 n/a n/a -2.00 01-May-98 PIMCO StocksPlus Growth and Income -28.66 n/a n/a -6.10 01-May-98 Pioneer Fund VCT -27.71 n/a n/a -23.16 13-Jul-01 Pioneer Mid-Cap Value VCT Portfolio -20.03 n/a n/a -11.39 02-Nov-01 ProFund VP Bull -32.32 n/a n/a -26.54 01-May-01 ProFund VP Europe 30 -34.06 n/a n/a -31.10 01-May-01 ProFund VP Small Cap -30.81 n/a n/a -22.67 01-May-01 Prudential Jennison Port. -39.32 n/a n/a -31.46 01-May-00 SP Jennison International Growth -31.19 n/a n/a -37.12 02-Oct-00
4 Average Annual Total Return for Periods Ending 12/31/02-Standardized without Rider Charges
Inception 1 Year 5 Year 10 Year Inception Date - ---------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trend -39.72 n/a n/a -27.28 12-Oct-01 Fidelity VIP Equity-Income Portfolio -24.93 n/a n/a -20.43 13-Jul-01 Fidelity VIP Growth Portfolio -37.80 n/a n/a -31.78 13-Jul-01 ING AIM Capital Mid Cap Growth Portfolio -39.16 -7.79 n/a -0.89 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -37.55 -8.79 n/a -0.59 01-Apr-96 ING Capital Guardian Large Cap Value Portfolio -31.43 n/a n/a -11.65 01-Feb-00 ING Capital Guardian Managed Global Portfolio -27.89 2.65 2.51 2.43 21-Oct-92 ING Capital Guardian Small Cap Portfolio -33.04 -0.35 n/a 3.22 02-Jan-96 ING Developing World Portfolio -18.62 n/a n/a -9.94 19-Feb-98 ING Eagle Asset Value Equity Portfolio -24.84 -4.61 n/a 4.42 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -27.07 n/a n/a -16.26 02-Oct-00 ING Goldman Sachs Internet Tollkeeper (SM) Portfolio -45.44 n/a n/a -41.42 01-May-01 ING Hard Assets Portfolio -7.36 -8.04 3.60 1.71 25-Jan-89 ING International Equity Portfolio -23.95 -6.98 n/a -5.43 01-Apr-96 ING Janus Growth and Income Portfolio -27.14 n/a n/a -17.26 02-Oct-00 ING Janus Special Equity Portfolio -33.54 n/a n/a -22.89 02-Oct-00 ING Jennison Equity Opportunities Portfolio -36.78 -8.03 2.44 3.14 04-May-92 ING JP Morgan Fleming International Enhanced EAFE Portfolio n/a n/a n/a -24.14 01-May-02 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -27.92 01-May-02 Portfolio ING Limited Maturity Bond Portfolio -1.05 4.06 3.64 4.38 25-Jan-89 ING Liquid Assets Portfolio -6.73 1.99 2.07 2.59 25-Jan-89 ING Marsico Growth Portfolio -37.09 -4.91 n/a 0.01 01-Apr-96 ING Mercury Focus Value Portfolio n/a n/a n/a -22.69 01-May-02 ING Mercury Fundamental Growth Portfolio n/a n/a n/a -26.63 01-May-02 ING MFS Mid Cap Growth Portfolio -55.92 -3.53 n/a 5.16 07-Oct-94 ING MFS Research Portfolio -32.49 -5.02 n/a 4.39 07-Oct-94 ING MFS Total Return Portfolio -13.13 2.85 n/a 7.47 07-Oct-94 ING PIMCO Core Bond Portfolio 0.36 0.62 n/a 2.19 07-Oct-94 ING Salomon Brothers All Cap Portfolio -33.17 n/a n/a -7.49 01-Feb-00 ING Salomon Brothers Investors Portfolio -30.64 n/a n/a -9.40 01-Feb-00 ING T. Rowe Price Capital Appreciation -7.66 6.50 7.12 6.86 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -21.05 -0.84 3.69 4.49 25-Jan-89 ING UBS US Balanced Portfolio -22.60 n/a n/a -16.09 02-Oct-00 ING Van Kampen Equity Growth Portfolio n/a n/a n/a -28.16 01-May-02 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -17.96 01-May-02 ING Van Kampen Growth and Income Portfolio -22.59 -2.69 n/a 5.89 04-Oct-93 ING Van Kampen Real Estate Portfolio -7.94 1.18 8.70 6.88 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a -0.07 01-May-02 ING VP Growth Opportunities Portfolio -38.99 n/a n/a -36.38 01-May-01 ING VP MagnaCap Portfolio -30.65 n/a n/a -22.61 01-May-01 ING VP SmallCap Opportunities Portfolio -50.97 n/a n/a -41.65 01-May-01 ING VP Worldwide Growth Portfolio -32.43 n/a n/a -24.60 01-May-00 INVESCO VIF - Financial Services Fund -22.73 n/a n/a -19.46 13-Jul-01 INVESCO VIF - Health Sciences Fund -32.08 n/a n/a -21.01 13-Jul-01 INVESCO VIF - Utilities Fund -28.04 n/a n/a -30.95 13-Jul-01 INVESCO VIF Leisure Fund n/a n/a n/a -22.00 01-May-02 PIMCO High Yield Portfolio -9.30 n/a n/a -1.08 01-May-98 PIMCO StocksPlus Growth and Income -27.93 n/a n/a -5.24 01-May-98 Pioneer Fund VCT -26.99 n/a n/a -22.36 13-Jul-01 Pioneer Mid-Cap Value VCT Portfolio -19.28 n/a n/a -10.56 02-Nov-01 ProFund VP Bull -31.62 n/a n/a -25.71 01-May-01 ProFund VP Europe 30 -33.36 n/a n/a -30.25 01-May-01 ProFund VP Small Cap -30.11 n/a n/a -21.85 01-May-01 Prudential Jennison Port. -38.65 n/a n/a -30.47 01-May-00 SP Jennison International Growth -30.50 n/a n/a -36.17 02-Oct-00
5 Non-Standard Average Annual Total Return for All Subaccounts Quotations of non-standard average annual total return for any subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a contract over a period of one, five and 10 years (or, if less, up to the life of the subaccount), calculated pursuant to the formula: P(1+T)(n)]=ERV Where: (1) [P] equals a hypothetical initial premium payment of $1,000 (2) [T] equals an average annual total return (3) [n] equals the number of years (4) [ERV] equals the ending redeemable value of a hypothetical $1,000 initial premium payment made at the beginning of the period (or fractional portion thereof) assuming certain loading and charges are zero. Except for the subaccounts which had not commenced operations as of December 31, 2002, Average Annual Total Return for the Subaccounts presented on a non-standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, administrative charges of 0.15%, living benefit rider charge annualized at 1.14%, the earnings multiplier benefit rider charge annualized at 0.30%, but not the applicable surrender charge or the contract administrative charge for the year ending December 31, 2002 were as follows: Average Annual Total Return for Periods Ending 12/31/02-Non-Standardized with Rider Charges 6
Inception 1 Year 5 Year 10 Year Inception Date - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trend -34.35 n/a n/a -23.60 12-Oct-01 Fidelity VIP Equity-Income Portfolio -19.61 n/a n/a -16.71 13-Jul-01 Fidelity VIP Growth Portfolio -32.43 n/a n/a -27.70 13-Jul-01 ING AIM Capital Mid Cap Growth Portfolio -33.79 -8.59 n/a -1.64 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -32.21 -9.63 n/a -1.33 01-Apr-96 ING Capital Guardian Large Cap Value Portfolio -26.11 n/a n/a -10.77 01-Feb-00 ING Capital Guardian Managed Global Portfolio -22.58 1.92 1.63 1.54 21-Oct-92 ING Capital Guardian Small Cap Portfolio -27.68 -1.09 n/a 2.47 02-Jan-96 ING Developing World Portfolio -13.33 n/a n/a -10.92 19-Feb-98 ING Eagle Asset Value Equity Portfolio -19.53 -5.47 n/a 3.67 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -21.75 n/a n/a -14.86 02-Oct-00 ING Goldman Sachs Internet Tollkeeper (SM) Portfolio -40.08 n/a n/a -38.03 01-May-01 ING Hard Assets Portfolio -2.10 -9.03 2.84 0.75 25-Jan-89 ING International Equity Portfolio -18.65 -7.80 n/a -6.31 01-Apr-96 ING Janus Growth and Income Portfolio -21.82 n/a n/a -15.82 02-Oct-00 ING Janus Special Equity Portfolio -28.19 n/a n/a -21.26 02-Oct-00 ING Jennison Equity Opportunities Portfolio -31.43 -8.84 1.67 2.38 04-May-92 ING JP Morgan Fleming International Enhanced EAFE Portfolio n/a n/a n/a -18.70 01-May-02 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -22.46 01-May-02 Portfolio ING Limited Maturity Bond Portfolio 4.15 3.26 2.85 3.57 25-Jan-89 ING Liquid Assets Portfolio -1.49 1.21 1.30 1.79 25-Jan-89 ING Marsico Growth Portfolio -31.73 -5.63 n/a -0.71 01-Apr-96 ING Mercury Focus Value Portfolio n/a n/a n/a -17.27 01-May-02 ING Mercury Fundamental Growth Portfolio n/a n/a n/a -21.19 01-May-02 ING MFS Mid Cap Growth Portfolio -50.48 -4.22 n/a 4.50 07-Oct-94 ING MFS Research Portfolio -27.15 -5.79 n/a 3.69 07-Oct-94 ING MFS Total Return Portfolio -7.88 2.03 n/a 6.70 07-Oct-94 ING PIMCO Core Bond Portfolio 5.54 -0.26 n/a 1.29 07-Oct-94 ING Salomon Brothers All Cap Portfolio -27.84 n/a n/a -6.72 01-Feb-00 ING Salomon Brothers Investors Portfolio -25.32 n/a n/a -8.58 01-Feb-00 ING T. Rowe Price Capital Appreciation -2.43 5.67 6.27 5.97 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -15.76 -1.68 2.85 3.62 25-Jan-89 ING UBS US Balanced Portfolio -17.31 n/a n/a -14.71 02-Oct-00 ING Van Kampen Equity Growth Portfolio n/a n/a n/a -22.71 01-May-02 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -12.53 01-May-02 ING Van Kampen Growth and Income Portfolio -17.29 -3.50 n/a 5.15 04-Oct-93 ING Van Kampen Real Estate Portfolio -2.69 0.28 7.93 5.99 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a 5.30 01-May-02 ING VP Growth Opportunities Portfolio -33.61 n/a n/a -33.18 01-May-01 ING VP MagnaCap Portfolio -25.32 n/a n/a -19.90 01-May-01 ING VP SmallCap Opportunities Portfolio -45.53 n/a n/a -38.19 01-May-01 ING VP Worldwide Growth Portfolio -27.09 n/a n/a -23.13 01-May-00 INVESCO VIF - Financial Services Fund -17.42 n/a n/a -16.50 13-Jul-01 INVESCO VIF - Health Sciences Fund -26.73 n/a n/a -17.98 13-Jul-01 INVESCO VIF - Utilities Fund -22.73 n/a n/a -27.71 13-Jul-01 INVESCO VIF Leisure Fund n/a n/a n/a -16.57 01-May-02 PIMCO High Yield Portfolio -4.08 n/a n/a -1.97 01-May-98 PIMCO StocksPlus Growth and Income -22.62 n/a n/a -6.07 01-May-98 Pioneer Fund VCT -21.67 n/a n/a -19.33 13-Jul-01 Pioneer Mid-Cap Value VCT Portfolio -13.99 n/a n/a -6.99 02-Nov-01 ProFund VP Bull -26.28 n/a n/a -22.90 01-May-01 ProFund VP Europe 30 -28.02 n/a n/a -27.30 01-May-01 ProFund VP Small Cap -24.77 n/a n/a -19.15 01-May-01 Prudential Jennison Port. -33.28 n/a n/a -28.70 01-May-00 SP Jennison International Growth -25.15 n/a n/a -33.99 02-Oct-00
7 Average Annual Total Return for Periods Ending 12/31/02-Non-Standardized without Rider Charges
Inception 1 Year 5 Year 10 Year Inception Date - ----------------------------------------------------------------------------------------------------------------------- AIM V.I. Dent Demographic Trend -33.68 n/a n/a -22.88 12-Oct-01 Fidelity VIP Equity-Income Portfolio -18.89 n/a n/a -15.92 13-Jul-01 Fidelity VIP Growth Portfolio -31.76 n/a n/a -26.95 13-Jul-01 ING AIM Capital Mid Cap Growth Portfolio -33.12 -7.75 n/a -0.86 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -31.51 -8.76 n/a -0.57 01-Apr-96 ING Capital Guardian Large Cap Value Portfolio -25.39 n/a n/a -9.92 01-Feb-00 ING Capital Guardian Managed Global Portfolio -21.86 2.68 2.55 2.47 21-Oct-92 ING Capital Guardian Small Cap Portfolio -27.00 -0.32 n/a 3.24 02-Jan-96 ING Developing World Portfolio -12.58 n/a n/a -9.90 19-Feb-98 ING Eagle Asset Value Equity Portfolio -18.80 -4.57 n/a 4.44 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -21.04 n/a n/a -14.03 02-Oct-00 ING Goldman Sachs Internet Tollkeeper (SM) Portfolio -39.40 n/a n/a -37.22 01-May-01 ING Hard Assets Portfolio -1.32 -7.99 3.62 1.74 25-Jan-89 ING International Equity Portfolio -17.92 -6.94 n/a -5.40 01-Apr-96 ING Janus Growth and Income Portfolio -21.10 n/a n/a -15.00 02-Oct-00 ING Janus Special Equity Portfolio -27.50 n/a n/a -20.43 02-Oct-00 ING Jennison Equity Opportunities Portfolio -30.74 -8.00 2.46 3.17 04-May-92 ING JP Morgan Fleming International Enhanced EAFE Portfolio n/a n/a n/a -18.14 01-May-02 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -21.92 01-May-02 Portfolio ING Limited Maturity Bond Portfolio 4.99 4.10 3.67 4.40 25-Jan-89 ING Liquid Assets Portfolio -0.70 2.03 2.11 2.62 25-Jan-89 ING Marsico Growth Portfolio -31.05 -4.88 n/a 0.03 01-Apr-96 ING Mercury Focus Value Portfolio n/a n/a n/a -16.69 01-May-02 ING Mercury Fundamental Growth Portfolio n/a n/a n/a -20.63 01-May-02 ING MFS Mid Cap Growth Portfolio -49.88 -3.51 n/a 5.18 07-Oct-94 ING MFS Research Portfolio -26.45 -4.98 n/a 4.41 07-Oct-94 ING MFS Total Return Portfolio -7.09 2.88 n/a 7.50 07-Oct-94 ING PIMCO Core Bond Portfolio 6.40 0.66 n/a 2.22 07-Oct-94 ING Salomon Brothers All Cap Portfolio -27.13 n/a n/a -5.91 01-Feb-00 ING Salomon Brothers Investors Portfolio -24.60 n/a n/a -7.75 01-Feb-00 ING T. Rowe Price Capital Appreciation -1.62 6.53 7.15 6.88 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -15.02 -0.80 3.72 4.51 25-Jan-89 ING UBS US Balanced Portfolio -16.56 n/a n/a -13.87 02-Oct-00 ING Van Kampen Equity Growth Portfolio n/a n/a n/a -22.16 01-May-02 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -11.96 01-May-02 ING Van Kampen Growth and Income Portfolio -16.55 -2.66 n/a 5.92 04-Oct-93 ING Van Kampen Real Estate Portfolio -1.90 1.23 8.73 6.91 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a 5.93 01-May-02 ING VP Growth Opportunities Portfolio -32.95 n/a n/a -32.39 01-May-01 ING VP MagnaCap Portfolio -24.61 n/a n/a -19.09 01-May-01 ING VP SmallCap Opportunities Portfolio -44.93 n/a n/a -37.44 01-May-01 ING VP Worldwide Growth Portfolio -26.39 n/a n/a -22.23 01-May-00 INVESCO VIF - Financial Services Fund -16.69 n/a n/a -15.71 13-Jul-01 INVESCO VIF - Health Sciences Fund -26.04 n/a n/a -17.22 13-Jul-01 INVESCO VIF - Utilities Fund -22.00 n/a n/a -26.92 13-Jul-01 INVESCO VIF Leisure Fund n/a n/a n/a -16.00 01-May-02 PIMCO High Yield Portfolio -3.26 n/a n/a -1.05 01-May-98 PIMCO StocksPlus Growth and Income -21.90 n/a n/a -5.22 01-May-98 Pioneer Fund VCT -20.95 n/a n/a -18.55 13-Jul-01 Pioneer Mid-Cap Value VCT Portfolio -13.24 n/a n/a -6.16 02-Nov-01 ProFund VP Bull -25.58 n/a n/a -22.09 01-May-01 ProFund VP Europe 30 -27.32 n/a n/a -26.49 01-May-01 ProFund VP Small Cap -24.07 n/a n/a -18.35 01-May-01 Prudential Jennison Port. -32.61 n/a n/a -27.78 01-May-00 SP Jennison International Growth -24.46 n/a n/a -33.09 02-Oct-00
8 Performance Information for a subaccount may be compared, in reports and promotional literature, to: (i) the Standard & Poor's 500 Stock Index ("S&P 500"), Dow Jones Industrial Average ("DJIA"), Donoghue Money Market Institutional Averages, or other indices that measure performance of a pertinent group of securities so that investors may compare a subaccount's results with those of a group of securities widely regarded by investors as representative of the securities markets in general; (ii) other groups of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services, a widely used independent research firm which ranks mutual funds and other investment companies by overall performance, investment objectives, and assets, or tracked by other services, companies, publications, or persons who rank such investment companies on overall performance or other criteria; and (iii) the Consumer Price Index (measure for inflation) to assess the real rate of return from an investment in the contract. Unmanaged indices may assume the reinvestment of dividends but generally do not reflect deductions for administrative and management costs and expenses. Performance Information for any subaccount reflects only the performance of a hypothetical contract under which contract value is allocated to a subaccount during a particular time period on which the calculations are based. Performance Information should be considered in light of the investment objectives and policies, characteristics and quality of the investment portfolio of the Trust in which the Separate Account B subaccounts invest, and the market conditions during the given time period, and should not be considered as a representation of what may be achieved in the future. Reports and promotional literature may also contain other information including the ranking of any subaccount derived from rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by other rating services, companies, publications, or other persons who rank separate accounts or other investment products on overall performance or other criteria. Published Ratings From time to time, the rating of ING USA as an insurance company by A.M. Best may be referred to in advertisements or in reports to contract owners. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best's Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. Best's ratings range from A+ + to F. An A++ and A+ ratings mean, in the opinion of A.M. Best, that the insurer has demonstrated the strongest ability to meet its respective policyholder and other contractual obligations. Accumulation Unit Value The calculation of the Accumulation Unit Value ("AUV") is discussed in the prospectus for the Contracts under Condensed Financial Information. Note that in your Contract, accumulation unit value is referred to as the Index of Investment Experience. The following illustrations show a calculation of a new AUV and the purchase of Units (using hypothetical examples). Note that the examples below are calculated for a Contract issued with the death benefit option with the highest mortality and expense risk charge. The mortality and expense risk charge associated with other death benefit options are lower than that used in the examples and would result in higher AUV's or contract values. 9 Illustration of Calculation of AUV Example 1. 1. AUV, beginning of period $ 10.00 2. Value of securities, beginning of period $ 10.00 3. Change in value of securities $ 0.10 4. Gross investment return (3) divided by (2) 0.01 5. Less daily mortality and expense charge 0.00004280 6. Less asset based administrative charge 0.00000411 7. Net investment return (4) minus (5) minus (6) 0.009953092 8. Net investment factor (1.000000) plus (7) 1.009953092 9. AUV, end of period (1) multiplied by (8) $ 10.09953092 Illustration of Purchase of Units (Assuming no state premium tax) Example 2. 1. Initial premium payment $ 1,000 2. AUV on effective date of purchase (see Example 1) $ 10.00 3. Number of units purchased (1) divided by (2) 100 4. AUV for valuation date following purchase (see Example 1) $ 10.09953092 5. Contract Value in account for valuation date following purchase (3) multiplied by (4) $ 1,009.95 IRA Partial Withdrawal Option If the contract owner has an IRA contract and will attain age 70 1/2 in the current calendar year, distributions will be made in accordance with the requirements of Federal tax law. This option is available to assure that the required minimum distributions from qualified plans under the Internal Revenue Code (the "Code") are made. Under the Code, distributions must begin no later than April 1st of the calendar year following the calendar year in which the contract owner attains age 70 1/2. If the required minimum distribution is not withdrawn, there may be a penalty tax in an amount equal to 50% of the difference between the amount required to be withdrawn and the amount actually withdrawn. Even if the IRA Partial Withdrawal Option is not elected, distributions must nonetheless be made in accordance with the requirements of Federal tax law. ING USA notifies the contract owner of these regulations with a letter mailed in the calendar year in which the contract owner reaches age 70 1/2 which explains the IRA Partial Withdrawal Option and supplies an election form. If electing this option, the owner specifies whether the withdrawal amount will be based on a life expectancy calculated on a single life basis (contract owner's life only) or, if the contract owner is married, on a joint life basis (contract owner's and spouse's lives combined). The contract owner selects the payment mode on a monthly, quarterly or annual basis. If the payment mode selected on the election form is more frequent than annually, the payments in the first calendar year in which the option is in effect will be based on the amount of payment modes remaining when ING USA receives the completed election form. ING USA calculates the IRA Partial Withdrawal amount each year based on the minimum distribution rules. We do this by dividing the contract value by the life expectancy. In the first year withdrawals begin; we use the contract value as of the date of the first payment. Thereafter, we use the contract value on December 31st of each year. The life expectancy is recalculated each year. Certain minimum distribution rules govern payouts if the designated beneficiary is other than the contract owner's spouse and the beneficiary is more than ten years younger than the contract owner. Other Information Registration statements have been filed with the SEC under the Securities Act of 1933, as amended, with respect to the Contracts discussed in this Statement of Additional Information. Not all of the information set forth in the registration statements, amendments and exhibits thereto has been included in this Statement of Additional Information. Statements contained in this Statement of Additional Information concerning the content of the Contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC. 10 Consolidated Financial Statements of Golden American Life Insurance Company The consolidated audited financial statements of Golden American Life Insurance Company are listed below and are included in this Statement of Additional Information: Report of Independent Auditors Audited Consolidated Financial Statements of Golden American Life Insurance Company Consolidated Income Statements for the years ended December 31, 2002, 2001 and 2000 Consolidated Balance Sheets as of December 31, 2002 and 2001 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2002, 2001 and 2000 Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000 Unaudited Consolidated Financial Statements of ING USA Annuity and Life Insurance Company Consolidated Income Statements for the quarter ended September 30, 2003 Consolidated Balance Sheets as of the quarter ended September 30, 2003 Consolidated Statements of Changes in Shareholder's Equity for the quarter ended September 30, 2003 Consolidated Statements of Cash Flows for the quarter ended September 30, 2003 Notes to Consolidated Financial Statements Financial Statements of Separate Account B The audited financial statements of Separate Account B are listed below and are included in this Statement of Additional Information: Report of Independent Auditors Audited Financial Statements of Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities as of December 31, 2002 Statement of Operations for the year ended December 31, 2002 Statements of Changes in Net Assets for the years ended December 31, 2002 and 2001 Unaudited Financial Statements of ING USA Annuity and Life Insurance Company Separate Account B Statement of Assets and Liabilities as of quarter ended September 30, 2003 Statement of Operations for the quarter ended September 30, 2003 Statement of Changes in Net Assets for the quarter ended September 30, 2003 Notes to Financial Statements 11 {Separate Account B Third Quarter 2003 Financials - To be added by amendment} {Golden American Life Insurance Company Third Quarter 2003 Financials - To be added by amendment} FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page ------------ Report of Independent Auditors .................................... F-2 Consolidated Financial Statements: Consolidated Income Statements for the years ended December 31, 2002, 2001, and 2000............................................. F-3 Consolidated Balance Sheets as of December 31, 2002 and 2001..... F-4 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2002, 2001, and 2000................ F-5 Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001, and 2000................................................... F-6 Notes to Consolidated Financial Statements....................... F-7 F-1 REPORT OF INDEPENDENT AUDITORS The Board of Directors Golden American Life Insurance Company We have audited the accompanying consolidated balance sheets of Golden American Life Insurance Company and Subsidiary as of December 31, 2002 and 2001, and the related income statements, statements of changes in shareholder's equity, and statements of cash flows for each of the three years in the period ended December 31, 2002. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 referred to above present fairly, in all material respects, the consolidated financial position of Golden American Life Insurance Company at December 31, 2002 and 2001, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. As discussed in Note 1 to the financial statements, the Company changed the accounting principle for goodwill and other intangible assets effective January 1, 2002. /s/ Ernst & Young LLP Atlanta, Georgia March 21, 2003 F-2
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED INCOME STATEMENTS (Millions) For the Years Ended December 31, ------------------------------------------------ 2002 2001 2000 ------------- -------------- ------------- Revenues: Fee income $ 204.0 $ 188.9 $ 167.9 Net investment income 197.7 94.4 64.1 Net realized capital gains (losses) 4.2 (6.5) (6.6) Other income 3.5 - - ------------- -------------- ------------- Total revenue 409.4 276.8 225.4 ------------- -------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 276.5 209.0 199.9 Underwriting, acquisition, and insurance expenses: General expenses 139.7 119.9 89.5 Commissions 288.7 232.4 213.7 Policy acquisition costs deferred (292.2) (128.2) (168.4) Amortization: Deferred policy acquisition costs and value of business acquired 127.8 49.6 60.0 Goodwill - 4.2 4.2 Other: Expense and charges reimbursed under modified coinsurance agreements (104.9) (225.6) (225.8) Interest expense 16.0 19.4 19.9 ------------- -------------- ------------- Total benefits, losses and expenses 451.6 280.7 193.0 ------------- -------------- ------------- Income (loss) before income taxes (42.2) (3.9) 32.4 Income tax expense (benefit) (12.5) 0.1 13.2 ------------- -------------- ------------- Income (loss) before cumulative effect of change in accounting principle (29.7) (4.0) 19.2 Cumulative effect of change in accounting principle (135.3) - - ------------- -------------- ------------- Net income (loss) $ (165.0) $ (4.0) $ 19.2 ============= ============== ============= See Notes to Consolidated Financial Statements F-3
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED BALANCE SHEETS (Millions, except share data) As of December 31, ------------------------------------- Assets 2002 2001 ------ ----------------- ---------------- Investments: Fixed maturities, available for sale, at fair value (amortized cost of $4,720.1 at 2002 and $1,982.5 at 2001) $ 4,936.4 $1,994.9 Equity securities, at fair value: Investment in mutual funds (cost of $22.9 at 2002) 19.0 - Mortgage loans on real estate 482.4 213.9 Policy loans 16.0 14.8 Short-term investments 2.2 10.1 ----------------- ---------------- Total investments 5,456.0 2,233.7 Cash and cash equivalents 148.5 195.7 Accrued investment income 61.9 22.8 Reinsurance recoverable 196.9 56.0 Deferred policy acquisition costs 678.0 709.0 Value of business acquired 8.5 20.2 Goodwill (net of accumulated amortization of $17.6 at 2001) - 151.3 Other assets 5.3 23.7 Assets held in separate accounts 11,029.3 10,958.2 ----------------- ---------------- Total assets $ 17,584.4 $14,370.6 ================= ================ Liabilities and Shareholder's Equity ------------------------------------ Policy liabilities and accruals: Future policy benefits and claims reserves $ 5,159.1 $2,185.3 ----------------- ---------------- Total policy liabilities and accruals 5,159.1 2,185.3 Surplus notes 170.0 245.0 Due to affiliates - 25.1 Payables for securities purchased - 36.4 Current income taxes 42.4 - Deferred income taxes 79.8 12.6 Dollar roll obligations 40.0 3.9 Other borrowed money - 1.4 Other liabilities 64.7 84.9 Liabilities related to separate accounts 11,029.3 10,958.2 ----------------- ---------------- Total liabilities 16,585.3 13,552.8 ----------------- ---------------- Shareholder's equity: Common stock (250,000 shares authorized, issued and outstanding; $10.00 per share par value) 2.5 2.5 Additional paid-in capital 1,128.4 780.4 Accumulated other comprehensive income 2.1 3.8 Retained earnings (deficit) (133.9) 31.1 ----------------- ---------------- Total shareholder's equity 999.1 817.8 ----------------- ---------------- Total liabilities and shareholder's equity $ 17,584.4 $ 14,370.6 ================= ================ See Notes to Consolidated Financial Statements F-4
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Millions) Accumulated Total Additional Other Retained Share- Common Paid-in- Comprehensive Earnings holder's Stock Paid-in-Capit Income (loss) (Deficit) Equity ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 1999 $ 2.5 $ 468.6 $ (9.2) $ 15.9 $ 477.8 Contribution of capital 115.0 115.0 Comprehensive income: Net income - - - 19.2 19.2 Other comprehensive income net of tax: Unrealized gain on securities ($9.8 pretax) - - 5.1 - 5.1 ------------ Comprehensive income 24.3 ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2000 2.5 583.6 (4.1) 35.1 617.1 Contribution of capital 196.8 196.8 Comprehensive income: Net (loss) - - - (4.0) (4.0) Other comprehensive income net of tax: Unrealized gain on securities ($12.2 pretax) - - 7.9 - 7.9 ------------ Comprehensive income 3.9 ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2001 2.5 780.4 3.8 31.1 817.8 Contribution of capital 356.3 356.3 Other (8.3) (8.3) Comprehensive income: Net (loss) - - - (165.0) (165.0) Other comprehensive income net of tax: Unrealized (loss) on securities ($(2.6) pretax) - - (1.7) - (1.7) ------------ Comprehensive (loss) (166.7) ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2002 $ 2.5 $ 1,128.4 $ 2.1 $ (133.9) $ 999.1 ============ ============= ================== =========== ============ See Notes to Consolidated Financial Statements F-5
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions) For the years Ended December 31, 2002 2001 2000 ---------------- ------------- --------------- Cash Flows from Operating Activities: Net income (loss) $ (165.0) $ (4.0) $ 19.2 Adjustments to reconcile net income to net cash provided by operating activities: Interest credited and charges on interest sensitive products 282.2 191.0 183.1 Net realized capital (gains) losses (4.2) 6.5 6.6 Accrued investment income (39.5) (13.2) 1.6 Increase in guaranteed benefits reserve 107.1 28.2 26.7 Acquisition costs deferred (292.2) (128.2) (168.4) Amortization of deferred policy acquisition costs 121.2 45.2 55.2 Amortization of value of business acquired 6.6 4.4 4.8 Impairment of Goodwill 151.3 - - Change in other assets and liabilities 21.3 110.6 (69.4) Provision for deferred income taxes (85.7) (0.6) 13.3 ---------------- ------------- --------------- Net cash provided by operating activities 103.1 239.9 72.7 Cash Flows from Investing Activities: Proceeds from the sale of: Fixed maturities available for sale 7,297.1 880.7 205.1 Equity securities 7.8 6.9 6.1 Mortgages 285.0 136.0 12.7 Acquisition of investments: Fixed maturities available for sale (10,068.3) (2,070.8) (154.0) Equity securities (22.8) - - Short-term investments - (4.7) (5.3) Mortgages (553.7) (250.3) (12.9) Increase (decrease) in policy loans (1.2) (1.5) 0.8 Increase (decrease) in property and equipment 1.1 1.2 (3.2) Proceeds from sale of interest in subsidiary 27.7 - - Loss on valuation of interest in subsidiary 3.0 - - Other 0.6 - - ---------------- ------------- --------------- Net cash (used for) provided by investing activities (3,023.7) (1,302.5) 49.3 Cash Flows from Financing Activities: Deposits and interest credited for investment contracts 3,818.5 1,933.1 801.8 Maturities and withdrawals from insurance contracts (171.2) (134.8) (141.5) Transfers from (to) separate accounts (1,053.8) (902.9) (825.8) Proceeds of notes payable - 3.1 67.2 Repayment of notes payable (1.4) (1.7) (68.6) Proceeds from reciprocal loan agreement borrowings - 69.3 178.9 Repayment of reciprocal loan agreement borrowings (75.0) (69.3) (178.9) Contributions of capital by parent 356.3 196.8 115.0 ---------------- ------------- --------------- Net cash provided by (used for) financing activities 2,873.4 1,093.6 (51.9) ---------------- ------------- --------------- Net increase (decrease) in cash and cash equivalents (47.2) 31.0 70.1 Cash and cash equivalents, beginning of period 195.7 164.7 94.6 ---------------- ------------- --------------- Cash and cash equivalents, end of period $ 148.5 $ 195.7 $ 164.7 ================ ============= =============== See Notes to Consolidated Financial Statements F-6
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A WHOLLY-OWNED SUBSIDIARY OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION Golden American Life Insurance Company ("Golden American"), a wholly-owned subsidiary of Equitable Life Insurance Company of Iowa ("Equitable Life" or the "Parent"), is a stock life insurance company organized under the laws of the State of Delaware. Golden American was originally incorporated under the laws of the State of Minnesota on January 2, 1973, in the name of St. Paul Life Insurance Company. Equitable Life is a wholly-owned subsidiary of Lion Connecticut Holding Inc. ("Lion Connecticut") which is an indirect wholly-owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. Golden American is authorized to do business in the District of Columbia and all states except New York. Golden American's wholly-owned life insurance subsidiary, First Golden American Life Insurance Company of New York ("First Golden,") and collectively with Golden American, the ("Company"), is licensed as a life insurance company under the laws of the States of New York and Delaware. There is no public trading market for the Registrant's of common stock. Formerly, from October 24, 1997, until December 30, 2001, Equitable of Iowa Company, Inc. ("EIC" or "Former Holding Company"), directly owned 100% of Golden American's stock. On December 3, 2001, the Board of Directors of the Former Holding Company approved a plan to contribute its holding of stock of Golden American to another wholly-owned subsidiary, Equitable Life. The contribution of stock occurred on December 31, 2001, following approval granted by the Insurance Department of the State of Delaware. There is no public trading market for the Registrant's common stock. As of April 1, 2002, Golden American sold First Golden to its sister company, ReliaStar Life Insurance Company ("ReliaStar"). ReliaStar Life, the parent of Security-Connecticut Life Insurance Company ("Security-Connecticut") which in turn is the parent of ReliaStar Life Insurance Company of New York ("RLNY"), merged the First Golden business into RLNY operations and dissolved First Golden at book value for $27.7 million in cash and a receivable totaling $0.2 million from RLNY. The receivable from RLNY was assumed by Equitable Life, and ultimately by ING. The consideration was based on First Golden's statutory-basis book value. RLNY's payable to the Company was assumed by ING and subsequently forgiven. Golden American realized a loss of $3.0 million related to the sale of First Golden, which was recorded as a capital transaction. Approval for the merger was obtained from the Insurance Departments of the States of New York and Delaware. Statement of Financial Accounting Standards ("FAS") No. 141 "Business Combinations" excludes transfers of net assets or exchanges of shares between entities under common control and is therefore covered by Accounting Principles Board ("APB") Opinion No. 16 "Business Combinations." Since RLNY presented combined results of operations including First Golden activity as of the beginning of the period ending December 31, 2002. The first three months of First Golden activity is not reflected in the Golden statement of financial position or other financial information for the period ended December 31, 2002, as the amounts were not material. F-7 DESCRIPTION OF BUSINESS The Company offers a portfolio of variable and fixed insurance products designed to meet customer needs for a tax-advantaged saving for retirement and protection from death. The Company's variable and fixed insurance products are marketed by broker/dealers, financial institutions, and insurance agents. The Company's primary customers are consumers and corporations. NEW ACCOUNTING STANDARDS ACCOUNTING FOR GOODWILL AND INTANGIBLE ASSETS In June 2001, the Financial Accounting Standards Board ("FASB") issued FAS No. 142, "Goodwill and Other Intangible Assets," effective for fiscal years beginning after December 15, 2001. Under FAS No. 142, goodwill and intangible assets deemed to have indefinite lives will no longer be amortized but will be subject to annual impairment tests. Other intangible assets are still amortized over their estimated useful lives. The Company adopted the new standard effective January 1, 2002. As required under FAS No. 142, the Company completed the first of the required impairment tests as of January 1, 2002. Step one of the impairment test was a screen for potential impairment, while step two measured the amount of the impairment. All of the Company's operations fall under one reporting unit, USFS, due to the consolidated nature of the Company's operations. Step one of the impairment test required the Company to estimate the fair value of the reporting unit and compare the estimated fair value to its carrying value. The Company determined the estimated fair value utilizing a discounted cash flow approach and applying a discount rate equivalent to the Company's weighted average cost of capital. Fair value was determined to be less than carrying value which required the Company to complete step two of the test. In step two, the Company allocated the fair value of the reporting unit determined in step one to the assets and liabilities of the reporting unit resulting in an implied fair value of goodwill of zero. The comparison of the fair value amount allocated to goodwill and the carrying value of goodwill resulted in an impairment loss of $135.3 million net of taxes, which represents the entire carrying amount of goodwill, net of accumulated amortization. This impairment charge is shown as a change in accounting principle on the Consolidated Statements of Income. Application of the nonamortization provision (net of tax) of the new standard resulted in an increase in net income of $3.8 million for the twelve months ended December 31, 2002. Had the Company been accounting for goodwill under FAS No. 142 for all periods presented, the Company's net (loss) income would have been as follows: (Millions) Year ended Year ended December 31, 2001 December 31, 2001 ------------------------------------------------------------------------ Reported net income (loss) $ (4.0) $ 19.2 Add back goodwill amortization, net of tax 3.8 3.8 ------------------------------------------------------------------------ Adjusted net income $ (0.2) $ 23.0 ======================================================================== F-8 ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In June 1998, the FASB issued FAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended and interpreted by FAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement 133, FAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities - an Amendment of FASB 133, and certain FAS 133 implementation issues." This standard, as amended, requires companies to record all derivatives on the balance sheet as either assets or liabilities and measure those instruments at fair value. The manner in which companies are to record gains or losses resulting from changes in the fair values of those derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. FAS No. 133 was effective for the Company's financial statements beginning January 1, 2001. Adoption of FAS No. 133 did not have a material effect on the Company's financial position or results of operations given the Company's limited derivative and embedded derivative holdings. The Company occasionally purchases a financial instrument that contains a derivative that is "embedded" in the instrument. In addition, the Company's insurance products are reviewed to determine whether they contain an embedded derivative. The Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument or insurance product (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current period earnings or the Company is unable to reliably identify and measure the embedded derivative for separation from its host contracts, the entire contract is carried on the balance sheet at fair value and is not designated as a hedging instrument. The Company did not have embedded derivatives at December 31, 2002. GUARANTEES In November 2002, the FASB issued Interpretation No.45 ("FIN 45"), "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others," to clarify accounting and disclosure requirements relating to a guarantor's issuance of certain types of guarantees, or groups of similar guarantees, even if the likelihood of the guarantor's having to make any payments under the guarantee is remote. The disclosure provisions are effective for financial statements for fiscal years ended after December 15, 2002. For certain guarantees, the interpretation also requires that guarantors recognize a liability equal to the fair value of the guarantee upon its issuance. This initial recognition and measurement provision is to be applied only on a prospective basis to guarantees issued or modified after December 31, 2002. The Company has performed an assessment of its guarantees and believes that all of its guarantees are excluded from the scope of this interpretation. In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"), Consolidation of Variable Interest Entities ("VIE"), an interpretation of Accounting Research Bulletin ("ARB") No. 51. This Interpretation addresses consolidation by business F-9 enterprises of variable interest entities, which have one or both of the following characteristics: a) insufficient equity investment at risk, or b) insufficient control by equity investors. This guidance is effective for VIEs created after January 31, 2003 and for existing VIEs as of July 1, 2003. An entity with variable interests in VIEs created before February 1, 2003 shall apply the guidance no later than the beginning of the first interim or annual reporting period beginning after June 15, 2003. In conjunction with the issuance of this guidance, the Company conducted a review of its involvement with VIEs and does not believe it has any significant investments or ownership in VIEs. FUTURE ACCOUNTING STANDARDS EMBEDDED DERIVATIVES The FASB issued FAS No.133, "Accounting for Derivative Instruments and Hedging Activities" ("FAS 133") in 1998 and continues to issue guidance for implementation through its Derivative Implementation Group ("DIG"). DIG recently released a draft of FASB Statement 133 Implementation Issue B36 "Embedded Derivatives: Bifurcation of a Debt Instrument That Incorporates Both Interest Rate Risk and Credit Risk Exposures That are Unrelated or Only Partially Related to the Creditworthiness of the Issuer of That Instrument" ("DIG B36"). Under this interpretation, modified coinsurance and coinsurance with funds withheld reinsurance agreements as well as other types of receivables and payables where interest is determined by reference to a pool of fixed maturity assets or total return debt index may be determined to contain bifurcatable embedded derivatives. The required date of adoption of DIG B36 has not been determined. If the guidance is finalized in its current form, the Company has determined that certain of its existing reinsurance receivables (payables), investments or insurance products contain embedded derivatives that may require bifurcation. The Company has not yet completed its evaluation of the potential impact, if any, on its consolidated financial positions, results of operations, or cash flows. 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 affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates. RECLASSIFICATIONS Certain reclassifications have been made to prior year financial information to conform to the current year classifications. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, money market instruments and other debt issues with a maturity of 90 days or less when purchased. F-10 INVESTMENTS All of the Company's fixed maturity and equity securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized gains and losses on these securities are included directly in shareholder's equity, after adjustment for related charges in deferred policy acquisition costs, value of business acquired, and deferred income taxes. The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis in accordance with FAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities." Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss is accounted for as a realized loss. Realized capital gains and losses on all other investments are reflected in the Company's results of operations. Unrealized capital gains and losses on all other investments are reflected in shareholder's equity, net of related income taxes. Purchases and sales of fixed maturities and equity securities (excluding private placements) are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Fair values for fixed maturity securities are obtained from independent pricing services or broker/dealer quotations. Fair values for privately placed bonds are determined using a matrix-based model. The matrix-based model considers the level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. The fair values for equity securities are based on quoted market prices. For equity securities not actively traded, estimated fair values are based upon values of issues of comparable yield and quality or conversion value where applicable. F-11 The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities. The collateral is deposited by the borrower with a lending agent, and retained and invested by the lending agent according to the Company's guidelines to generate additional income. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. Reverse dollar repurchase agreement and reverse repurchase agreement transactions are accounted for as collateralized borrowings, where the amount borrowed is equal to the sales price of the underlying securities. The investment in mutual funds represents an investment in mutual funds managed by the Company, and is carried at fair value. Mortgage loans on real estate are reported at amortized cost less impairment writedowns. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the present value of expected cash flows from the loan, discounted at the loan's effective interest rate, or to the loan's observable market price, or the fair value of the underlying collateral. The carrying value of the impaired loans is reduced by establishing a permanent writedown charged to realized loss. Policy loans are carried at unpaid principal balances, net of impairment reserves. Short-term investments, consisting primarily of money market instruments and other fixed maturity securities issues purchased with an original maturity of 91 days to one year, are considered available for sale and are carried at fair value, which approximates amortized cost. On occasion, the Company sells call options written on underlying securities that are carried at fair value. Changes in fair value of these options are recorded in net realized capital gains or losses. DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED Deferred Policy Acquisition Costs ("DAC") is an asset, which represents certain costs of acquiring certain insurance business, which are deferred and amortized. These costs, all of which vary with and are primarily related to the production of new and renewal business, consist principally of commissions, certain underwriting and contract issuance expenses, and certain agency expenses. Value of Business Acquired ("VOBA") is an asset, which represents the present value of estimated net cash flows embedded in the Company's contracts, which existed at the time the Company was acquired by ING. DAC and VOBA are evaluated for recoverability at each balance sheet date and these assets would be reduced to the extent that gross profits are inadequate to recover the asset. F-12 The amortization methodology varies by product type based upon two accounting standards: FAS No. 60, "Accounting and Reporting by Insurance Enterprises" ("FAS No. 60") and FAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and Realized Gains and Losses from the Sale of Investments" ("FAS No. 97"). Under FAS No. 60, acquisition costs for traditional life insurance products, which primarily include whole life and term life insurance contracts, are amortized over the premium payment period in proportion to the premium revenue recognition. Under FAS No. 97, acquisition costs for universal life and investment-type products, which include universal life policies and fixed and variable deferred annuities, are amortized over the life of the blocks of policies (usually 25 years) in relation to the emergence of estimated gross profits from surrender charges, investment margins, mortality and expense margins, asset-based fee income, and actual realized gains (losses) on investments. Amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised. Activity for the year-ended December 31, 2002 within VOBA was as follows: (Millions) ------------------------------------------------------------------- Balance at December 31,2001 $ 20.2 Adjustment for FAS No. 115 (5.1) Additions (3.3) Interest accrued at 7% 1.3 Amortization (4.6) ------------------------------------------------------------------- Balance at December 31,2002 $ 8.5 =================================================================== The estimated amount of VOBA to be amortized, net of interest, over the next five years is $3.0 million, $2.0 million, $1.5 million, $1.5 million and $1.1 million and $1.0 million for the years 2003, 2004, 2005, 2006 and 2007, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results. As part of the regular analysis of DAC/VOBA, at the end of third quarter 2002, the Company unlocked its assumptions by resetting its near term and long-term assumptions for the separate account returns to 9% (gross before fund management fees and mortality and expense and other policy charges), reflecting a blended return of equity and other sub-accounts. This unlocking adjustment was primarily driven by the sustained downturn in the equity markets and revised expectations for future returns. For the year ended December 31, 2002, the Company recorded an acceleration of DAC/VOBA amortization totaling $91.5 million before tax, or $59.5 million, net of $32.0 million of federal income tax benefit. POLICY LIABILITIES AND ACCRUALS Reserves for immediate annuities with life contingent payout contracts are computed on the basis of assumed investment yield, mortality, and expenses, including a margin for adverse deviations. Such assumptions generally vary by plan, year of issue and policy duration. Reserve interest rates range from 3.0% to 3.5% for all years presented. Investment yield is based on the Company's experience. F-13 Mortality and withdrawal rate assumptions are based on relevant Company experience and are periodically reviewed against both industry standards and experience. Other policyholders' funds include reserves for deferred annuity investment contracts and immediate annuities without life contingent payouts. Reserves on such contracts are equal to cumulative deposits less charges and withdrawals plus credited interest thereon (rates range from 2.4% to 11.0% for all years presented) net of adjustments for investment experience that the Company is entitled to reflect in future credited interest. REVENUE RECOGNITION For certain annuity contracts, charges assessed against policyholders' funds for the cost of insurance, surrender, expenses, actuarial margin and other fees are recorded as revenue as charges are assessed against policyholders. Other amounts received for these contracts are reflected as deposits and are not recorded as revenue. Related policy benefits are recorded in relation to the associated premiums or gross profit so that profits are recognized over the expected lives of the contracts. When annuity payments with life contingencies begin under contracts that were initially investment contracts, the accumulated balance in the account is treated as a single premium for the purchase of an annuity and reflected as an offsetting amount in both premiums and current and future benefits in the Consolidated Income Statement. SEPARATE ACCOUNTS Separate Account assets and liabilities generally represent funds maintained to meet specific investment objectives of contractholders who bear the investment risk, subject, in some cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contractholders. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate Account assets supporting variable options under universal life and annuity contracts are invested, as designated by the contractholder or participant under a contract (who bears the investment risk subject, in limited cases, to minimum guaranteed rates) in shares of mutual funds which are managed by the Company, or other selected mutual funds not managed by the Company. Separate Account assets are carried at fair value. At December 31, 2002 and 2001, unrealized gains of $133.4 million and of $6.9 million, respectively, after taxes, on assets supporting a guaranteed interest option are reflected in shareholder's equity. Separate Account liabilities are carried at fair value, except for those relating to the guaranteed interest option. Reserves relating to the guaranteed interest option are maintained at fund value and reflect interest credited at rates ranging from 2.4% to 11.0% in 2002 and 2.4% to 14.0% in 2001. F-14 Separate Account assets and liabilities are shown as separate captions in the Consolidated Balance Sheets. Deposits, investment income and net realized and unrealized capital gains and losses of the Separate Accounts are not reflected in the Consolidated Financial Statements (with the exception of realized and unrealized capital gains and losses on the assets supporting the guaranteed interest option). The Consolidated Statements of Cash Flows do not reflect investment activity of the Separate Accounts. REINSURANCE The Company utilizes indemnity reinsurance agreements to reduce its exposure to large losses in all aspects of its insurance business. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. The Company evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the Company's Balance Sheets. INCOME TAXES The Company is taxed at regular corporate rates after adjusting income reported for financial statement purposes for certain items. Deferred income tax expenses/benefits result from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. F-15
2. INVESTMENTS Fixed maturities available for sale as of December 31 were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2002 (Millions) Cost Gains Losses Value ----------------------------------------------------------------------------------------------------------- U.S. government and government agencies and authorities $ 207.3 $ 2.3 $ 0.1 $ 209.5 U.S. corporate securities: Public utilities 335.7 15.5 1.9 349.3 Other corporate securities 3,012.0 178.7 7.8 3,182.9 ----------------------------------------------------------------------------------------------------------- Total U.S. corporate securities 3,347.7 194.2 9.7 3,532.2 ----------------------------------------------------------------------------------------------------------- Foreign securities: Government 64.8 2.9 - 67.7 Other 163.8 12.2 1.2 174.8 ----------------------------------------------------------------------------------------------------------- Total foreign securities 228.6 15.1 1.2 242.5 ----------------------------------------------------------------------------------------------------------- Mortgage-backed securities 641.7 12.0 0.2 653.5 Other asset-backed securities 294.8 7.0 3.1 298.7 ----------------------------------------------------------------------------------------------------------- Total fixed maturities, including fixed maturities pledged to creditors 4,720.1 230.6 14.3 4,936.4 Less: Fixed maturities pledged to creditors - - - - ----------------------------------------------------------------------------------------------------------- Fixed maturities $4,720.1 $ 230.6 $ 14.3 $ 4,936.4 =========================================================================================================== F-16
Fixed maturities available for sale as of December 31 were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2001 (Millions) Cost Gains Losses Value ----------------------------------------------------------------------------------------------------------- U.S. government and government agencies and authorities $ 132.1 $ 0.5 $ 3.4 $ 129.2 U.S. corporate securities: Public utilities 39.8 0.3 1.4 38.7 Other corporate securities 1,111.8 15.2 10.1 1,116.9 ----------------------------------------------------------------------------------------------------------- Total U.S. corporate securities 1,151.6 15.5 11.5 1,155.6 ----------------------------------------------------------------------------------------------------------- Foreign securities: Government 143.6 3.3 0.2 146.7 ----------------------------------------------------------------------------------------------------------- Total foreign securities 143.6 3.3 0.2 146.7 ----------------------------------------------------------------------------------------------------------- Mortgage-backed securities 167.0 3.6 0.9 169.7 Other asset-backed securities 388.2 7.2 1.7 393.7 ----------------------------------------------------------------------------------------------------------- Total fixed maturities, including fixed maturities pledged to creditors 1,982.5 30.1 17.7 1,994.9 Less: Fixed maturities pledged to creditors - - - - ----------------------------------------------------------------------------------------------------------- Fixed maturities $1,982.5 $ 30.1 $ 17.7 $ 1,994.9 ===========================================================================================================
The amortized cost and fair value of total fixed maturities for the year-ended December 31, 2002 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called, or prepaid. (Millions) Amortized Cost Fair Value ------------------------------------------------------------------------ Due to mature: One year or less $ - $ - After one year through five years 401.0 419.7 After five years through ten years 1,681.3 1,773.1 After ten years 1,701.3 1,791.4 Mortgage-backed securities 641.7 653.5 Other asset-backed securities 294.8 298.7 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Fixed maturities $4,720.1 $4,936.4 ======================================================================== At December 31, 2002 and 2001, fixed maturities with carrying values of $6.5 million and $6.9 million, respectively, were on deposit as required by regulatory authorities. The Company did not have any investments in a single issuer, other than obligations of the U.S. government, with a carrying value in excess of 10% of the Company's shareholder's equity at December 31, 2002. F-17 Beginning in April 2001, the Company entered into reverse dollar repurchase agreement and reverse repurchase agreement transactions to increase its return on investments and improve liquidity. These transactions involve a sale of securities and an agreement to repurchase substantially the same securities as those sold. The dollar rolls and reverse repurchase agreements are accounted for as short-term collateralized financings and the repurchase obligation is reported on the Consolidated Balance Sheets. The repurchase obligation totaled $40.0 and $3.9 million at December 31, 2002 and 2001, respectively. The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was not material at December 31, 2001. The Company believes the counterparties to the dollar roll and reverse repurchase agreements are financially responsible and that the counterparty risk is immaterial. During 2002, the Company determined that thirteen fixed maturities had other than temporary impairments. As a result, at December 31, 2002, the Company recognized a pre-tax loss of $8.9 million to reduce the carrying value of the fixed maturities to their combined fair value of $123.5 million. During 2001, the Company determined that ten fixed maturities had other than temporary impairments. As a result, at December 31, 2001, the Company recognized a pre-tax loss of $0.7 million to reduce the carrying value of the fixed maturities to their fair value of $0.07 million. 3. FINANCIAL INSTRUMENTS ESTIMATED FAIR VALUE The following disclosures are made in accordance with the requirements of FAS No. 107, "Disclosures about Fair Value of Financial Instruments." FAS No. 107 requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument. FAS No. 107 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. F-18 The following valuation methods and assumptions were used by the Company in estimating the fair value of the above financial instruments: FIXED MATURITIES SECURITIES: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices. The fair values for marketable bonds without an active market are obtained through several commercial pricing services which provide the estimated fair values. Fair values of privately placed bonds are determined using a matrix-based pricing model. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. Fair values for privately placed bonds are determined through consideration of factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in their relevant market. EQUITY SECURITIES: Fair values of these securities are based upon quoted market value. MORTGAGE LOANS ON REAL ESTATE: The fair values for mortgage loans on real estate are estimated using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. CASH, SHORT-TERM INVESTMENTS AND POLICY LOANS: The carrying amounts for these assets approximate the assets' fair values. ASSETS HELD IN SEPARATE ACCOUNTS: Assets held in separate accounts are reported at the quoted fair values of the individual securities in the separate accounts. SURPLUS NOTES: Estimated fair value of the Company's surplus notes were based upon discounted future cash flows using a discount rate approximating the current market value. INVESTMENT CONTRACT LIABILITIES (INCLUDED IN FUTURE POLICY BENEFITS AND CLAIMS RESERVES): SUPPLEMENTARY CONTRACTS AND IMMEDIATE ANNUITIES: Estimated fair values of the Company's liabilities for future policy benefits for the divisions of the variable annuity products with fixed interest guarantees and for supplemental contracts without life contingencies are stated at cash surrender value, the cost the Company would incur to extinguish the liability. LIABILITIES RELATED TO SEPARATE ACCOUNTS: Liabilities related to separate accounts are reported at full account value in the Company's historical balance sheet. Estimated fair values of separate account liabilities are equal to their carrying amount. F-19 The carrying values and estimated fair values of certain of the Company's financial instruments at December 31, 2002 and 2001 were as follows:
2002 2001 -------------------------------------------------------------------------------------------------------- Carrying Fair Carrying Fair (Millions) Value Value Value Value -------------------------------------------------------------------------------------------------------- Assets: Fixed maturities $ 4,936.4 $4,936.4 $ 1,994.9 $ 1,994.9 Equity securities 19.0 19.0 - - Mortgage loans on real estate 482.4 522.2 213.9 219.2 Policy loans 16.0 16.0 14.8 14.8 Cash and short-term investments 150.7 150.7 205.8 205.8 Assets held in separate accounts 11,029.3 11,029.3 10,958.2 10,958.2 Liabilities: Surplus notes (170.0) (260.0) (245.0) (358.1) Investment contract liabilities: Deferred annuities (5,128.0) (4,802.9) (2,155.3) (1,976.7) Supplementary contracts and immediate annuities (8.0) (8.0) (7.1) (7.1) Liabilities related to separate accounts (11,029.3) (11,029.3) (10,958.2) (10,958.2) --------------------------------------------------------------------------------------------------------
Fair value estimates are made at a specific point in time, based on available market information and judgments about various financial instruments, such as estimates of timing and amounts of future cash flows. Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating the Company's management of interest rate, price and liquidity risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. F-20 4. NET INVESTMENT INCOME Sources of net investment income were as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, (Millions) 2002 2001 2000 ------------------------------------------------------------------------- Fixed maturities $ 185.6 $ 83.7 $ 55.3 Mortgage loans 19.6 11.2 7.8 Policy loans 0.6 0.8 0.5 Short term investments and cash equivalents 2.6 2.6 2.3 Other 0.4 0.6 0.7 ------------------------------------------------------------------------- Gross investment income 208.8 98.9 66.6 Less: investment expenses 11.1 4.5 2.5 ------------------------------------------------------------------------- Net investment income $ 197.7 $ 94.4 $ 64.1 ========================================================================= 5. DIVIDEND RESTRICTIONS AND SHAREHOLDER'S EQUITY The ability of Golden American to pay dividends to the Parent is restricted. Prior approval of insurance regulatory authorities is required for payment of dividends to the stockholder which exceed an annual limit. During 2002, Golden American cannot pay dividends to Equitable Life without prior approval of statutory authorities. Golden American did not pay common stock dividends during 2002, 2001, or 2000. The Department recognizes as net income and capital and surplus those amounts determined in conformity with statutory accounting practices prescribed or permitted by the Department, which differ in certain respects from accounting principles generally accepted in the United States. Statutory net (loss) income was $(303.0) million, $(156.4) million and $(71.1) million for the years ended December 31, 2002, 2001, and 2000, respectively. Statutory capital and surplus was $424.9 million and $451.6 million as of December 31, 2002 and 2001, respectively. As of December 31, 2002, the Company does not utilize any statutory accounting practices, which are not prescribed by state regulatory authorities that, individually or in the aggregate, materially affect statutory capital and surplus. For 2001, the Company was required to implement statutory accounting changes ("Codification") ratified by the National Association of Insurance Commissioners ("NAIC") and state insurance departments. The cumulative effect of Codification to the Company's statutory surplus as of January 1, 2001 was a decrease of $5.9 million. The Company maintains a $40.0 million reciprocal loan agreement with ING AIH (refer to Note 10), a perpetual $75.0 million revolving note facility with Bank of New York and a $75.0 million revolving note facility with SunTrust Bank which expires on July 31, 2003. 6. CAPITAL GAINS AND LOSSES ON INVESTMENT OPERATIONS Realized capital gains or losses are the difference between the carrying value and sale proceeds of specific investments sold. Net realized capital (losses) gains on investments were as follows: F-21
Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 -------------------------------------------------------------------------------------- Fixed maturities $ 4.2 $ (4.9) $ (6.3) Equity securities - (1.6) (0.2) Mortgage loans on real estate - - (0.1) -------------------------------------------------------------------------------------- Pretax realized capital gains (losses) $ 4.2 $ (6.5) $ (6.6) ====================================================================================== After-tax realized capital gains (losses) $ 2.7 $ (4.2) $ (4.3) ======================================================================================
Proceeds from the sale of total fixed maturities and the related gross gains and losses were as follows: Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Proceeds on sales $ 7,297.1 $ 880.7 $ 205.1 Gross gains 76.8 6.9 0.2 Gross losses 72.6 11.8 6.5 Changes in shareholder's equity related to changes in accumulated other comprehensive income were as follows: (Millions) 2002 2001 2000 -------------------------------------------------------------------------- Fixed maturities $ 204.0 $18.4 $12.4 Equity securities (3.9) - - DAC/VOBA (202.8) (8.4) (10.4) -------------------------------------------------------------------------- (2.7) 10.0 2.0 Increase (decrease) in deferred income taxes (1.0) 2.1 (3.1) -------------------------------------------------------------------------- Net changes in accumulated other comprehensive income (loss) $ (1.7) $ 7.9 $ 5.1 -------------------------------------------------------------------------- F-22 Shareholder's equity included the following accumulated other comprehensive income (loss), at December 31: (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Net unrealized capital gains (losses): Fixed maturities $ 216.3 $ 12.3 $ (6.1) Equity securities (3.9) - - DAC/VOBA (209.2) (6.4) 2.0 --------------------------------------------------------------------------- 3.2 5.9 (4.1) Deferred income taxes 1.1 2.1 - --------------------------------------------------------------------------- Net accumulated other comprehensive income (loss) $ 2.1 $ 3.8 $ (4.1) =========================================================================== Changes in accumulated other comprehensive income related to changes in unrealized gains (losses) on securities, were as follows: (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Unrealized holding gains (losses) arising $ (8.7) $ 11.1 $ 6.9 the year (1) Less: reclassification adjustment for gains (losses) and other items included in net income (2) 7.0 (3.2) (1.8) --------------------------------------------------------------------------- Net unrealized gains (losses) on securities $ (1.7) $ 7.9 $ 5.1 =========================================================================== (1) Pretax unrealized holding gains (losses) arising during the year were $13.4 million, $17.1 million and $10.6 million for the years ended December 31, 2002, 2001 and 2000, respectively. (2) Pretax reclassification adjustments for gains (losses) and other items included in net income were $10.8 million, $(4.9) million and $(2.8) million for the years ended December 31, 2002, 2001 and 2000, respectively. F-23 7. SEVERANCE In December 2001, ING announced its intentions to further integrate and streamline the U.S. based operations of ING Americas, (which includes the Company), in order to build a more customer-focused organization. In connection with these actions, the Company recorded a charge of $4.9 million pretax. The severance portion of this charge ($4.8 million pretax) is based on a plan to eliminate 260 positions (primarily operations, information technology and other administrative/staff support personnel). Severance actions are expected to be substantially complete by March 31, 2003. The facilities portion ($.1 million pretax) of the charge represents the amount to be incurred by the Company to terminate a contractual lease obligation. Activity for the year ended December 31, 2002 within the severance liability and positions eliminated related to such actions were as follows: (Millions) Severance Liability Positions --------------------------------------------------------------------- Balance at December 31, 2001 $ 4.8 252 Actions taken (3.4) (194) --------------------------------------------------------------------- Balance at December 31, 2002 $ 1.4 58 ===================================================================== 8. INCOME TAXES Starting in 2002, Golden American Life Insurance Company joins in the filing of a consolidated federal income tax return with its parent, Equitable Life and other affiliates. The Company has a tax allocation agreement with Equitable Life whereby the Company is charged for taxes it would have incurred were it not a member of the consolidated group and is credited for losses at the statutory tax rate. Prior to joining the Equitable Life consolidated group, the Company was the parent of a different consolidated group. At December 31, 2002, the Company has net operating loss carryforwards of approximately $369.2 million for federal income tax purposes which are available to offset future taxable income. If not used, these carryforwards will expire between 2011 and 2016. Income tax expense (benefit) from continuing operations included in the consolidated financial statements are as follows: Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Current taxes (benefits): Federal $ (98.2) $ 0.6 $ (0.1) --------------------------------------------------------------------------- Total current taxes (benefits) (98.2) 0.6 (0.1) --------------------------------------------------------------------------- Deferred taxes (benefits): Federal 85.7 (0.5) 13.3 --------------------------------------------------------------------------- Total deferred taxes (benefits) 85.7 (0.5) 13.3 --------------------------------------------------------------------------- Total $ (12.5) $ 0.1 $ 13.2 ============================================================================ F-24 Income taxes were different from the amount computed by applying the federal income tax rate to income from continuing operations before income taxes for the following reasons:
Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 ------------------------------------------------------------------------------------ Income before income taxes $ (42.2) $ (3.9) $ 32.4 Tax rate 35% 35% 35% ------------------------------------------------------------------------------------ Income tax at federal statutory rate (14.8) (1.4) 11.3 Tax effect of: Goodwill amortization - 1.0 1.0 Meals and entertainment 0.6 0.5 0.3 Other 1.7 - 0.6 ------------------------------------------------------------------------------------ Income tax expense (benefit) $ (12.5) $ 0.1 $ 13.2 ------------------------------------------------------------------------------------
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31 are presented below:
(Millions) 2002 2001 ------------------------------------------------------------------------------------ Deferred tax assets: Operations and capital loss carryforwards $ 125.6 $ 121.7 Future policy benefits 214.1 176.3 Goodwill 11.1 - Investments 0.2 0.1 ------------------------------------------------------------------------------------ 351.0 298.1 Deferred tax liabilities: Goodwill - (3.5) Unrealized gains on investments (1.1) (2.1) Deferred policy acquisition cost (254.8) (222.8) Value of purchased insurance in force (5.0) (6.9) Other (169.9) (75.4) ------------------------------------------------------------------------------------ Deferred tax liability before allowance (430.8) (310.7) ------------------------------------------------------------------------------------ Valuation allowance - - ------------------------------------------------------------------------------------ Net deferred income tax liability $ (79.8) $ (12.6) ====================================================================================
The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. F-25 9. BENEFIT PLANS DEFINED BENEFIT PLANS Prior to December 31, 2001, the Company's employees were covered by the ING Retirement Plan for Employees of Equitable Life ("Equitable Plan"), a qualified, defined contribution pension plan. The Company was allocated its share of the pension liability associated with employees. As of December 31, 2001, the qualified pension benefit plans of certain United States subsidiaries of ING North America Insurance Corporation ("ING North America"), including Equitable Life, were merged into the ING Americas Retirement Plan. The Company transferred its pension liabilities to the Parent at that date. In exchange for these liabilities, the Company received a capital contribution, net of taxes, from the Parent. The costs allocated to the Company for its members' participation in the ING Pension Plan were $3.0 million for 2002. The following tables summarize the benefit obligations and the funded status for pension benefits related to the Equitable Plan for the two-year period ended December 31, 2001: (Millions) 2001 - ------------------------------------------------------------------------------ Change in benefit obligation: Benefit obligation at January 1 $ 7.9 Service cost 2.0 Interest cost 0.8 Actuarial (gain) loss (2.7) Plan Amendments (0.2) Transfer of benefit obligation to the Parent (7.8) ---------------------- Benefit obligation at December 31 $ - ====================== Funded status: Funded status at December 31 prior to the transfer of the benefit obligation to the Parent $ (7.8) Unrecognized past service cost (1.1) Unrecognized net loss - Transfer of the funded status to the Parent 8.9 ---------------------- Net amount recognized $ - ====================== Prior to the merger of the qualified benefit plans of ING's U.S. subsidiaries at December 31, 2001, Equitable Life, held the plan assets. The weighted-average assumptions used in the measurement of the Company's' December 31, 2001 benefit obligation, prior to the merger of the qualified benefit plans of ING, follows: 2001 - ------------------------------------------------------------------------------ Discount rate 7.50% Expected return on plan assets 9.25 Rate of compensation increase 4.50 F-26 The following table provides the net periodic benefit cost for the fiscal years 2001 and 2000: Year Ended December 31, 2001 2000 - ------------------------------------------------------------------------ (MILLIONS) Service cost $ 2.0 $ 1.6 Interest cost 0.8 0.5 Unrecognized past service cost - - ------------------------------------ Net periodic benefit cost $ 2.8 $ 2.1 ==================================== There were no gains or losses resulting from curtailments or settlements during 2001 or 2000. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $0 as of December 31, 2001. 10. RELATED PARTY TRANSACTIONS OPERATING AGREEMENTS: The Company has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. The agreements are as follows: o Resources and services are provided to Security Life of Denver Insurance Company ("SLDIC) and Southland Life Insurance Company ("SLIC"). For the years ended December 31, 2002, 2001, and 2000 revenues for these services, which reduced general expenses incurred, were $4.2 million, $0.3 million and $0.3 million, respectively for SLDIC and $1.0 million, $0.1 million and $0.1 million, respectively for SLIC. o Underwriting and distribution agreement with Directed Services, Inc. ("DSI"), for the variable insurance products issued by the Company. DSI is authorized to enter into agreements with broker/dealers to distribute the Company's' variable products and appoint representatives of the broker/dealers as agents. For the years ended December 31, 2002, 2001 and 2000 commission expenses were incurred in the amounts of $282.9 million, $229.7 million, and $208.9 million, respectively. o Asset management agreement with ING Investment Management LLC ("IIM"), in which IIM provides asset management and accounting services. The Company records a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2002, 2001, and 2000 expenses were incurred in the amounts of $11.0 million, $4.4 million, and $2.5 million, respectively. o Service agreement with Equitable Life in which administrative and financial related services are provided. For the years ended December 31, 2002, 2001, and 2000 expenses were incurred in the amounts of $0.6 million, $0.3 million, and $1.3 million, respectively. Golden American has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. F-27 The agreements are as follows: o Managerial and supervisory services to DSI. The fee paid by DSI for these services is calculated as a percentage of average assets in the variable separate accounts. For the years ended December 31, 2002, 2001, and 2000 revenue for these services was $23.7 million, $23.1 million, and $21.3 million, respectively. o Advisory, computer, and other resources and services are provided to Equitable Life and United Life & Annuity Insurance Company ("ULAIC"). For the years ended December 31, 2002, 2001, and 2000 revenues for these services, which reduced general expenses incurred, totaled $9.8 million, $8.2 million, and $6.2 million, respectively for Equitable Life and $0.3 million, $0.4 million and $0.6 million, respectively for ULAIC. o Expense sharing agreements with ING America Insurance Holdings, Inc. ("ING AIH") for administrative, management, financial, and information technology services, which were approved in 2001. For the years ended December 31, 2002 and 2001, Golden American incurred expenses of $41.0 million and $23.2 million, respectively. o Guaranty agreement with Equitable Life. In consideration of an annual fee, payable June 30, Equitable Life guarantees that it will make funds available, if needed, to pay the contractual claims made under the provisions of Golden American's life insurance and annuity contracts. The agreement is not, and nothing contained therein or done pursuant thereto by Equitable Life shall be deemed to constitute, a direct or indirect guaranty by Equitable Life of the payment of any debt or other obligation, indebtedness, or liability, of any kind or character whatsoever, of Golden American. The agreement does not guarantee the value of the underlying assets held in separate accounts in which funds of variable life insurance and variable annuity policies have been invested. The calculation of the annual fee is based on risk based capital. No amounts were payable under this agreement as of December 31, 2002, 2001 and 2000. REINSURANCE AGREEMENTS: Golden American participates in a modified coinsurance agreement with Equitable Life, covering a considerable portion of Golden American's variable annuities issued on or after January 1, 2000, excluding those with an interest rate guarantee. The financial statements are presented net of the effects of the agreement. Under this agreement, Golden American received a net reimbursement of expenses and charges of $100.9 million, $224.5 million and $218.8 million for the years ended December 31, 2002, 2001, and 2000, respectively. This was offset by a decrease in policy acquisition costs deferred of $143.5 million, $257.5 million and $223.7 million, respectively, for the same periods. As at December 31, 2002, 2001 and 2000, Golden American also had a payable to Equitable Life of $7.1 million, $22.6 million and $16.3 million, respectively, due to the overpayment by Equitable Life of the cash settlement for the modified coinsurance agreement. Golden American entered into a reinsurance agreement with Security Life of Denver International, Ltd., an affiliate, covering variable annuity minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued after January 1, 2000. Golden American also obtained an irrevocable letter of credit in the amount of $25 million related to this agreement. In addition, the Company obtained a standby letter of credit in the amount of $75 million. F-28 RECIPROCAL LOAN AGREEMENT: Golden American maintains a reciprocal loan agreement with ING AIH, a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which expires December 31, 2007, Golden American and ING AIH can borrow up to $40.0 million from one another. Prior to lending funds to ING AIH, Golden American must obtain the approval from the Department of Insurance of the State of Delaware. Interest on any Golden American borrowings is charged at the rate of ING AIH's cost of funds for the interest period plus 0.15%. Interest on any ING AIH borrowings is charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Under this agreement, Golden American incurred interest expense of $33,000, $26,000, and $481,000 for the years ended December 31, 2002, 2001 and 2000, respectively. At December 31, 2002, 2001, and 2000, Golden American did not have any borrowings or receivables from ING AIH under this agreement. SURPLUS NOTES: Golden American issued multiple 30-year surplus notes (see below table). Payment of the notes and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Interest expense for the years ended December 31:
(Millions) - ----------------------------------------------------------------------------------------------------------------------- Surplus Maturity Note Amount Affiliate Date 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------- 8.2% 50.0 *Equitable Life 12/29/29 2.0 4.1 4.1 8.0 35.0 Security Life of Denver 12/07/29 2.8 2.8 3.0 7.8 75.0 Equitable Life 09/29/29 5.8 5.8 5.8 7.3 60.0 Equitable Life 12/29/28 4.4 4.4 4.4 8.3 25.0 *Equitable Life 12/17/26 1.0 2.1 2.1 - -----------------------------------------------------------------------------------------------------------------------
*Surplus notes redeemed June 28, 2002. STOCKHOLDER'S EQUITY: During 2002, 2001, and 2000, Golden American received capital contributions of $356.3 million, $196.8 million, and $115.0 million respectively. F-29 11. REINSURANCE At December 31, 2002, Golden American had reinsurance treaties with four unaffiliated reinsurers and three affiliated reinsurers covering a significant portion of the mortality risks and guaranteed death and living benefits under its variable contracts. Golden American remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. Reinsurance ceded in force for life mortality risks were $90.7 million and $94.8 million at December 31, 2002 and 2001, respectively. At December 31, 2002 and 2001, the Company had net receivables of $196.9 million and $56.0 million, respectively for reinsurance claims, reserve credits, or other receivables from these reinsurers. At December 31, 2002 and 2001, respectively, these net receivables were comprised of the following: $36.7 and $7.8 million for claims recoverable from reinsurers; $6.3 and $3.4 million for payable for reinsurance premiums; $137.2 million and $28.8 million for reserve credits; and $24.0 million and $22.7 million for reinsured surrenders and allowances due from an unaffiliated reinsurer. Included in the accompanying consolidated financial statements, excluding the modified coinsurance agreements, are net considerations to reinsurers of $50.8 million, $30.3 million and $21.7 million and net policy benefits recoveries of $49.5 million, $21.8 million and $8.9 million for the years ended December 21, 2002, 2001 and 2000, respectively. Golden participates in a modified coinsurance agreement with an unaffiliated reinsurer. The accompanying consolidated financial statements are presented net of the effects of the treaty which increased (decreased) income by $(2.9) million, $(0.5) million and $1.7 million for the years ended December 31, 2002, 2001 and 2000, respectively. 12. COMMITMENTS AND CONTINGENT LIABILITIES LEASES For the year ended December 31, 2002 rent expense for leases was $4.6 million. The future net minimum payments under noncancelable leases for the years ended December 31, 2003 through 2007 are estimated to be $2.3 million, $2.3 million, $2.4 million, $2.4 million and $2.4 million, respectively, and $2.4 million, thereafter. The Company pays substantially all expenses associated with its leased and subleased office properties. Expenses not paid directly by the Company are paid for by an affiliate and allocated back to the Company. COMMITMENTS Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans or money market instruments at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. At December 31, 2002 and 2001, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $39.0 million and $25.2 million, respectively. The Company makes investments in limited partnerships on a subscription basis. At December 31, 2002 and 2001, the Company had to fund the subscriptions of $38.0 million and $0.0 million, respectively. F-30 LITIGATION The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. F-31
QUARTERLY DATA (UNAUDITED) 2002 (Millions) First Second Third Fourth - ------------------------------------------------------------------------------------------------------ Total Revenue $ 69.4 $ 89.2 $ 141.4 $ 109.4 - ------------------------------------------------------------------------------------------------------ Income (loss) before income taxes (3.2) (16.0) (60.2) 37.2 Income taxes (benefit) (1.0) (5.5) (19.2) 13.2 - ------------------------------------------------------------------------------------------------------ Income (loss) before cumulative effect of change in accounting principal (2.2) (10.5) (41.0) 24.0 Cumulative effect of change in accounting principle - - - (135.3) - ------------------------------------------------------------------------------------------------------ Net income (loss) $ (2.2) $ (10.5) $ (41.0) $ (111.3) ====================================================================================================== 2001 (Millions) First Second Third Fourth - ------------------------------------------------------------------------------------------------------ Total Revenue $ 72.1 $ 65.4 $ 70.1 $ 69.2 - ------------------------------------------------------------------------------------------------------ Income (loss) before income taxes 14.2 5.6 (14.3) (9.4) Income taxes 5.3 2.4 (5.6) (2.0) - ------------------------------------------------------------------------------------------------------ Net income (loss) $ 8.9 $ 3.2 $ (8.7) $ (7.4) ====================================================================================================== F-32
FINANCIAL STATEMENTS Golden American Life Insurance Company Separate Account B YEAR ENDED DECEMBER 31, 2002 WITH REPORT OF INDEPENDENT AUDITORS Golden American Life Insurance Company Separate Account B Financial Statements Year ended December 31, 2002 CONTENTS Report of Independent Auditors.............................................1 Audited Financial Statements Statement of Assets and Liabilities........................................4 Statement of Operations...................................................32 Statements of Changes in Net Assets.......................................60 Notes to Financial Statements.............................................88 Report of Independent Auditors The Board of Directors and Participants Golden American Life Insurance Company We have audited the accompanying statement of assets and liabilities of Golden American Life Insurance Company Separate Account B (the "Account") as of December 31, 2002, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. The Account is comprised of the following Divisions: The GCG Trust: The GCG Trust (continued): All Cap Internet Tollkeeper Advisor All Cap Advisor Investors Asset Allocation Growth Investors Advisor Capital Growth J.P. Morgan Fleming Small Cap Equity Capital Growth Advisor J.P. Morgan Fleming Small Cap Advisor Capital Guardian Small Cap Janus Growth and Income Capital Guardian Small Cap Advisor Janus Growth and Income Advisor Core Bond Large Cap Value Core Bond Advisor Large Cap Value Advisor Developing World Limited Maturity Bond Developing World Advisor Liquid Asset Diversified Mid-Cap Liquid Asset Advisor Diversified Mid-Cap Advisor Managed Global Emerging Markets Managed Global Advisor Equity Growth Market Manager Equity Growth Advisor Mid-Cap Growth Equity Income Mid-Cap Growth Advisor Equity Income Advisor Real Estate Equity Opportunity Real Estate Advisor Equity Opportunity Advisor Research Focus Value Research Advisor Focus Value Advisor Special Situations Fully Managed Special Situations Advisor Fully Managed Advisor Strategic Equity Fundamental Growth Focus Strategic Equity Advisor Fundamental Growth Advisor Total Return Global Franchise Total Return Advisor Global Franchise Advisor Value Equity Growth Value Equity Advisor Growth Advisor Van Kampen Growth and Income Hard Assets Van Kampen Growth and Income Advisor Hard Assets Advisor AIM Variable Insurance Funds: International Enhanced EAFE AIM V.I. Dent Demographic Trends International Enhanced EAFE Advisor AIM V.I. Growth International Equity AIM V.I. Capital Appreciation International Equity Advisor AIM V.I. Core Equity Internet Tollkeeper AIM V.I. Premier Equity
1 Alliance Variable Products Series Fund, Inc.: ING Variable Portfolios, Inc. (continued): Alliance Bernstein Value ING VP Small Company Alliance Growth and Income ING VP Value Opportunity Alliance Premier Growth ING Variable Products Trust: Fidelity(R) Variable Insurance Products Fund: ING VP Convertible Fidelity(R) VIP Growth ING VP Growth Opportunities Fidelity(R) VIP Equity-Income ING VP International Value Fidelity(R) VIP Contrafund(R) ING VP Large Company Value Fidelity(R) VIP Overseas ING VP LargeCap Growth Franklin Templeton Variable Insurance Products Trust: ING VP MagnaCap Franklin Small Cap Value Securities ING VP MidCap Opportunities Greenwich Street Series Fund: ING VP SmallCap Opportunities Greenwich Appreciation INVESCO Variable Investment Funds, Inc.: The Galaxy VIP Fund: INVESCO VIF - Financial Services Galaxy VIP Asset Allocation INVESCO VIF - Health Sciences Galaxy VIP Equity INVESCO VIF - Leisure Galaxy VIP Growth and Income INVESCO VIF - Utilities Galaxy VIP High Quality Bond Janus Aspen Series: Galaxy VIP Small Company Growth Janus Aspen Series Balanced ING GET Fund: Janus Aspen Series Flexible Income ING GET Fund - Series N Janus Aspen Series Growth ING GET Fund - Series P Janus Aspen Series Worldwide Growth ING GET Fund - Series Q Oppenheimer Variable Accounts Fund: ING GET Fund - Series R Oppenheimer Global Securities ING GET Fund - Series S Oppenheimer Strategic Bond ING GET Fund - Series T PIMCO Variable Insurance Trust: ING GET Fund - Series U PIMCO High Yield ING Partners, Inc.: PIMCO StocksPLUS Growth and Income ING Alger Growth Pioneer Variable Contracts Trust: ING American Century Small Cap Value Pioneer Equity-Income VCT ING J.P. Morgan Mid Cap Value Pioneer Fund VCT ING MFS(R)Capital Opportunities (Initial Class) Pioneer Mid-Cap Value VCT ING MFS(R)Capital Opportunities (Service Class) Pioneer Small Company VCT ING MFS(R)Global Growth ProFunds VP: ING OpCap Balanced Value ProFund VP Bull ING PIMCO Total Return ProFund VP Europe 30 ING Salomon Bros. Capital ProFund VP Small-Cap ING Salomon Bros. Investors Value Prudential Series Fund, Inc.: ING Scudder International Growth Prudential Jennison ING T. Rowe Price Growth Equity Prudential SP Jennison International Growth ING UBS Tactical Asset Allocation Putnam Variable Trust: ING Van Kampen Comstock Putnam VT Growth and Income ING Variable Insurance Trust: Putnam VT International Growth and Income ING VP Worldwide Growth Putnam VT Voyager II
2 ING VP Bond Portfolio: Travelers Series Fund Inc.: ING VP Bond Smith Barney High Income ING Variable Portfolios, Inc.: Smith Barney International All Cap Growth ING VP Growth Smith Barney Large Cap Value ING VP Index Plus LargeCap Smith Barney Money Market ING VP Index Plus MidCap UBS Series Trust: ING VP Index Plus SmallCap UBS Tactical Allocation
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2002, by correspondence with the transfer agents. 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 referred to above present fairly, in all material respects, the financial position of each of the Divisions comprising the Golden American Life Insurance Company Separate Account B at December 31, 2002, and the results of their operations and changes in their net assets for the periods disclosed in the financial statements, in conformity with accounting principles generally accepted in the United States. /s/ ERNST & YOUNG LLP Atlanta, Georgia March 14, 2003 3 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $247,786 $176 $47,253 $246,763 $148 $341,173 --------------------------------------------------------------------------------- Total assets 247,786 176 47,253 246,763 148 341,173 LIABILITIES Payable to Golden American Life Insurance Company 46 - 12 (6) - 27 --------------------------------------------------------------------------------- Total liabilities 46 - 12 (6) - 27 --------------------------------------------------------------------------------- NET ASSETS $247,740 $176 $47,241 $246,769 $148 $341,146 ================================================================================= NET ASSETS Accumulation units $247,740 $176 $47,241 $246,769 $148 $341,115 Contracts in payout (annuitization) period - - - - - 31 --------------------------------------------------------------------------------- Total net assets $247,740 $176 $47,241 $246,769 $148 $341,146 ================================================================================= Total number of mutual fund shares 28,947,007 20,551 6,446,580 27,663,981 16,548 43,516,942 ================================================================================= Cost of mutual fund shares $326,290 $177 $55,931 $245,271 $154 $365,212 ================================================================================= SEE ACCOMPANYING NOTES.
4 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GUARDIAN GCG TRUST GCG TRUST GCG TRUST GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING DEVELOPING DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD WORLD ADVISOR MID-CAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $321 $425,187 $992 $60,010 $79 $91,178 --------------------------------------------------------------------------------- Total assets 321 425,187 992 60,010 79 91,178 LIABILITIES Payable to Golden American Life Insurance Company - 62 - 10 - 19 --------------------------------------------------------------------------------- Total liabilities - 62 - 10 - 19 --------------------------------------------------------------------------------- NET ASSETS $321 $425,125 $992 $60,000 $79 $91,159 ================================================================================= NET ASSETS Accumulation units $321 $425,125 $992 $59,922 $79 $91,159 Contracts in payout (annuitization) period - - - 78 - - --------------------------------------------------------------------------------- Total net assets $321 $425,125 $992 $60,000 $79 $91,159 ================================================================================= Total number of mutual fund shares 40,778 40,927,570 95,384 9,463,043 12,488 12,304,724 ================================================================================= Cost of mutual fund shares $320 $413,399 $995 $66,565 $81 $107,329 ================================================================================= SEE ACCOMPANYING NOTES.
5 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST EQUITY GCG TRUST EQUITY GCG TRUST MID-CAP EQUITY GROWTH EQUITY INCOME EQUITY ADVISOR GROWTH ADVISOR INCOME ADVISOR OPPORTUNITY --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $220 $4,363 $458 $409,709 $640 $280,956 --------------------------------------------------------------------------------- Total assets 220 4,363 458 409,709 640 280,956 LIABILITIES Payable to Golden American Life Insurance Company - 1 - 39 - 2 --------------------------------------------------------------------------------- Total liabilities - 1 - 39 - 2 --------------------------------------------------------------------------------- NET ASSETS $220 $4,362 $458 $409,670 $640 $280,954 ================================================================================= NET ASSETS Accumulation units $220 $4,362 $458 $409,087 $640 $280,954 Contracts in payout (annuitization) period - - - 583 - - --------------------------------------------------------------------------------- Total net assets $220 $4,362 $458 $409,670 $640 $280,954 ================================================================================= Total number of mutual fund shares 29,088 553,027 58,036 42,151,267 65,893 28,011,556 ================================================================================= Cost of mutual fund shares $224 $4,533 $480 $478,993 $660 $375,266 ================================================================================= SEE ACCOMPANYING NOTES.
6 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST FULLY FUNDAMENTAL OPPORTUNITY GCG TRUST FOCUS VALUE FULLY MANAGED GROWTH ADVISOR FOCUS VALUE ADVISOR MANAGED ADVISOR FOCUS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $34 $5,932 $48 $935,237 $894 $2,742 --------------------------------------------------------------------------------- Total assets 34 5,932 48 935,237 894 2,742 LIABILITIES Payable to Golden American Life Insurance Company - 1 - 158 - - --------------------------------------------------------------------------------- Total liabilities - 1 - 158 - - --------------------------------------------------------------------------------- NET ASSETS $34 $5,931 $48 $935,079 $894 $2,742 ================================================================================= NET ASSETS Accumulation units $34 $5,931 $48 $934,553 $894 $2,742 Contracts in payout (annuitization) period - - - 526 - - --------------------------------------------------------------------------------- Total net assets $34 $5,931 $48 $935,079 $894 $2,742 ================================================================================= Total number of mutual fund shares 3,356 702,000 5,700 54,596,475 52,102 340,663 ================================================================================= Cost of mutual fund shares $34 $6,022 $50 $951,332 $913 $2,856 ================================================================================= SEE ACCOMPANYING NOTES.
Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GCG TRUST ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR HARD ASSETS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $108 $14,672 $708 $559,968 $92 $67,762 --------------------------------------------------------------------------------- Total assets 108 14,672 708 559,968 92 67,762 LIABILITIES Payable to Golden American Life Insurance Company - 2 - (73) - 9 --------------------------------------------------------------------------------- Total liabilities - 2 - (73) - 9 --------------------------------------------------------------------------------- NET ASSETS $108 $14,670 $708 $560,041 $92 $67,753 ================================================================================= NET ASSETS Accumulation units $108 $14,670 $708 $560,041 $92 $67,731 Contracts in payout (annuitization) period - - - - - 22 --------------------------------------------------------------------------------- Total net assets $108 $14,670 $708 $560,041 $92 $67,753 ================================================================================= Total number of mutual fund shares 13,419 1,643,031 78,863 57,609,909 9,474 6,907,479 ================================================================================= Cost of mutual fund shares $113 $14,881 $702 $588,641 $97 $72,704 ================================================================================= SEE ACCOMPANYING NOTES.
7 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST INTERNATIONAL GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL EQUITY INTERNET ADVISOR EAFE EAFE ADVISOR EQUITY ADVISOR TOLLKEEPER --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $97 $4,990 $165 $120,479 $254 $12,805 --------------------------------------------------------------------------------- Total assets 97 4,990 165 120,479 254 12,805 LIABILITIES Payable to Golden American Life Insurance Company - - - 2 - 3 --------------------------------------------------------------------------------- Total liabilities - - - 2 - 3 --------------------------------------------------------------------------------- NET ASSETS $97 $4,990 $165 $120,477 $254 $12,802 ================================================================================= NET ASSETS Accumulation units $97 $4,990 $165 $120,477 $254 $12,802 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $97 $4,990 $165 $120,477 $254 $12,802 ================================================================================= Total number of mutual fund shares 9,842 602,666 19,839 17,486,179 36,824 2,690,088 ================================================================================= Cost of mutual fund shares $95 $4,961 $166 $117,316 $254 $12,773 ================================================================================= SEE ACCOMPANYING NOTES.
8 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST J.P. GCG TRUST J.P. MORGAN MORGAN GCG TRUST INTERNET GCG TRUST FLEMING FLEMING JANUS TOLLKEEPER GCG TRUST INVESTORS SMALL CAP SMALL CAP GROWTH AND ADVISOR INVESTORS ADVISOR EQUITY ADVISOR INCOME --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $53 $92,152 $297 $9,491 $511 $130,375 --------------------------------------------------------------------------------- Total assets 53 92,152 297 9,491 511 130,375 LIABILITIES Payable to Golden American Life Insurance Company - 16 - 1 - 30 --------------------------------------------------------------------------------- Total liabilities - 16 - 1 - 30 --------------------------------------------------------------------------------- NET ASSETS $53 $92,136 $297 $9,490 $511 $130,345 ================================================================================= NET ASSETS Accumulation units $53 $92,136 $297 $9,490 $511 $130,345 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $53 $92,136 $297 $9,490 $511 $130,345 ================================================================================= Total number of mutual fund shares 11,189 11,490,287 37,008 1,198,388 64,524 18,107,685 ================================================================================= Cost of mutual fund shares $57 $119,320 $297 $9,902 $520 $156,213 ================================================================================= SEE ACCOMPANYING NOTES.
9 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST JANUS GROWTH GCG TRUST GCG TRUST LIMITED LIQUID AND INCOME LARGE CAP LARGE CAP MATURITY GCG TRUST ASSET ADVISOR VALUE VALUE ADVISOR BOND LIQUID ASSET ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $587 $295,742 $333 $559,019 $1,023,271 $1,800 --------------------------------------------------------------------------------- Total assets 587 295,742 333 559,019 1,023,271 1,800 LIABILITIES Payable to Golden American Life Insurance Company - 54 - 78 92 - --------------------------------------------------------------------------------- Total liabilities - 54 - 78 92 - --------------------------------------------------------------------------------- NET ASSETS $587 $295,688 $333 $558,941 $1,023,179 $1,800 ================================================================================= NET ASSETS Accumulation units $587 $295,688 $333 $558,749 $1,023,108 $1,800 Contracts in payout (annuitization) period - - - 192 71 - --------------------------------------------------------------------------------- Total net assets $587 $295,688 $333 $558,941 $1,023,179 $1,800 ================================================================================= Total number of mutual fund shares 81,270 38,209,569 42,967 48,864,682 1,023,271,242 1,799,891 ================================================================================= Cost of mutual fund shares $602 $364,544 $347 $550,029 $1,023,271 $1,800 ================================================================================= SEE ACCOMPANYING NOTES.
10 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST MANAGED GLOBAL MID-CAP GROWTH GCG TRUST REAL ESTATE GLOBAL ADVISOR GROWTH ADVISOR REAL ESTATE ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $223,101 $50 $435,524 $549 $187,637 $276 --------------------------------------------------------------------------------- Total assets 223,101 50 435,524 549 187,637 276 LIABILITIES Payable to Golden American Life Insurance Company 17 - (57) - 30 - --------------------------------------------------------------------------------- Total liabilities 17 - (57) - 30 - --------------------------------------------------------------------------------- NET ASSETS $223,084 $50 $435,581 $549 $187,607 $276 ================================================================================= NET ASSETS Accumulation units $222,985 $50 $435,520 $549 $187,529 $276 Contracts in payout (annuitization) period 99 - 61 - 78 - --------------------------------------------------------------------------------- Total net assets $223,084 $50 $435,581 $549 $187,607 $276 ================================================================================= Total number of mutual fund shares 26,911,933 5,981 59,989,440 75,620 12,534,302 18,400 ================================================================================= Cost of mutual fund shares $265,330 $51 $536,584 $558 $203,069 $278 ================================================================================= SEE ACCOMPANYING NOTES.
11 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST RESEARCH SPECIAL SITUATIONS STRATEGIC EQUITY RESEARCH ADVISOR SITUATIONS ADVISOR EQUITY ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $421,026 $326 $21,800 $56 $139,837 $78 --------------------------------------------------------------------------------- Total assets 421,026 326 21,800 56 139,837 78 LIABILITIES Payable to Golden American Life Insurance Company (9) - 6 - (15) - --------------------------------------------------------------------------------- Total liabilities (9) - 6 - (15) - --------------------------------------------------------------------------------- NET ASSETS $421,035 $326 $21,794 $56 $139,852 $78 ================================================================================= NET ASSETS Accumulation units $421,035 $326 $21,794 $56 $139,689 $78 Contracts in payout (annuitization) period - - - - 163 - --------------------------------------------------------------------------------- Total net assets $421,035 $326 $21,794 $56 $139,852 $78 ================================================================================= Total number of mutual fund shares 35,202,892 27,238 3,488,059 8,892 15,554,763 8,627 ================================================================================= Cost of mutual fund shares $624,498 $329 $29,152 $56 $139,701 $79 ================================================================================= SEE ACCOMPANYING NOTES.
12 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST VAN KAMPEN TOTAL GCG TRUST VALUE VAN KAMPEN GROWTH AND GCG TRUST RETURN VALUE EQUITY GROWTH AND INCOME TOTAL RETURN ADVISOR EQUITY ADVISOR INCOME ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $853,368 $955 $173,253 $107 $554,615 $990 --------------------------------------------------------------------------------- Total assets 853,368 955 173,253 107 554,615 990 LIABILITIES Payable to Golden American Life Insurance Company 102 - 14 - 7 - --------------------------------------------------------------------------------- Total liabilities 102 - 14 - 7 - --------------------------------------------------------------------------------- NET ASSETS $853,266 $955 $173,239 $107 $554,608 $990 ================================================================================= NET ASSETS Accumulation units $853,266 $955 $173,226 $107 $554,483 $990 Contracts in payout (annuitization) period - - 13 - 125 - --------------------------------------------------------------------------------- Total net assets $853,266 $955 $173,239 $107 $554,608 $990 ================================================================================= Total number of mutual fund shares 57,621,059 64,473 13,535,386 8,350 32,188,897 57,364 ================================================================================= Cost of mutual fund shares $940,003 $984 $206,816 $110 $733,160 $1,001 ================================================================================= SEE ACCOMPANYING NOTES.
13 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
AIM V.I. DENT AIM V.I. AIM V.I. ALLIANCE DEMOGRAPHIC AIM V.I. CAPITAL AIM V.I. PREMIER BERNSTEIN TRENDS GROWTH APPRECIATION CORE EQUITY EQUITY VALUE --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $11,338 $848 $27 $41 $80 $2,709 --------------------------------------------------------------------------------- Total assets 11,338 848 27 41 80 2,709 LIABILITIES Payable to Golden American Life Insurance Company 3 - - - - - --------------------------------------------------------------------------------- Total liabilities 3 - - - - - --------------------------------------------------------------------------------- NET ASSETS $11,335 $848 $27 $41 $80 $2,709 ================================================================================= NET ASSETS Accumulation units $11,335 $848 $27 $41 $80 $2,709 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $11,335 $848 $27 $41 $80 $2,709 ================================================================================= Total number of mutual fund shares 2,999,480 75,286 1,672 2,417 4,947 309,651 ================================================================================= Cost of mutual fund shares $13,467 $932 $34 $44 $87 $2,932 ================================================================================= SEE ACCOMPANYING NOTES.
14 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ALLIANCE ALLIANCE FIDELITY(R) FIDELITY(R) FIDELITY(R) GROWTH AND PREMIER FIDELITY(R) VIP VIP VIP INCOME GROWTH VIP GROWTH EQUITY-INCOME CONTRAFUND(R) OVERSEAS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $4,731 $2,094 $23,216 $23,855 $4,439 $9 --------------------------------------------------------------------------------- Total assets 4,731 2,094 23,216 23,855 4,439 9 LIABILITIES Payable to Golden American Life Insurance Company 1 - 4 4 1 - --------------------------------------------------------------------------------- Total liabilities 1 - 4 4 1 - --------------------------------------------------------------------------------- NET ASSETS $4,730 $2,094 $23,212 $23,851 $4,438 $9 ================================================================================= NET ASSETS Accumulation units $4,730 $2,094 $23,212 $23,851 $4,438 $9 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $4,730 $2,094 $23,212 $23,851 $4,438 $9 ================================================================================= Total number of mutual fund shares 286,931 121,132 1,000,254 1,325,264 247,315 848 ================================================================================= Cost of mutual fund shares $5,706 $2,199 $24,417 $23,730 $4,720 $9 ================================================================================= SEE ACCOMPANYING NOTES.
15 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
FRANKLIN GALAXY VIP SMALL CAP GALAXY VIP GALAXY VIP HIGH VALUE GREENWICH ASSET GALAXY VIP GROWTH AND QUALITY SECURITIES APPRECIATION ALLOCATION EQUITY INCOME BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $17 $589 $631 $487 $122 $130 --------------------------------------------------------------------------------- Total assets 17 589 631 487 122 130 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $17 $589 $631 $487 $122 $130 ================================================================================= NET ASSETS Accumulation units $17 $589 $631 $487 $122 $130 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $17 $589 $631 $487 $122 $130 ================================================================================= Total number of mutual fund shares 1,814 33,520 52,433 43,112 15,339 11,785 ================================================================================= Cost of mutual fund shares $20 $704 $875 $907 $171 $124 ================================================================================= SEE ACCOMPANYING NOTES.
16 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP SMALL ING GET ING GET ING GET ING GET ING GET COMPANY FUND - FUND - FUND - FUND - FUND - GROWTH SERIES N SERIES P SERIES Q SERIES R SERIES S --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $57 $28,663 $142,429 $169,061 $170,561 $219,297 --------------------------------------------------------------------------------- Total assets 57 28,663 142,429 169,061 170,561 219,297 LIABILITIES Payable to Golden American Life Insurance Company - 2 (1,417) 32 35 27 --------------------------------------------------------------------------------- Total liabilities - 2 (1,417) 32 35 27 --------------------------------------------------------------------------------- NET ASSETS $57 $28,661 $143,846 $169,029 $170,526 $219,270 ================================================================================= NET ASSETS Accumulation units $57 $28,661 $143,846 $169,029 $170,526 $219,270 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $57 $28,661 $143,846 $169,029 $170,526 $219,270 ================================================================================= Total number of mutual fund shares 7,252 2,832,289 13,991,036 16,838,766 16,887,183 21,777,267 ================================================================================= Cost of mutual fund shares $90 $28,540 $140,492 $168,845 $169,204 $218,284 ================================================================================= SEE ACCOMPANYING NOTES.
17 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING ING MFS(R) AMERICAN CAPITAL ING GET ING GET CENTURY ING J.P. OPPORTUNITIES FUND - FUND - ING ALGER SMALL CAP MORGAN MID (INITIAL SERIES T SERIES U GROWTH VALUE CAP VALUE CLASS) --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $237,964 $1,048 $39 $2 $301 $1,280 --------------------------------------------------------------------------------- Total assets 237,964 1,048 39 2 301 1,280 LIABILITIES Payable to Golden American Life Insurance Company 16 - - - - - --------------------------------------------------------------------------------- Total liabilities 16 - - - - - --------------------------------------------------------------------------------- NET ASSETS $237,948 $1,048 $39 $2 $301 $1,280 ================================================================================= NET ASSETS Accumulation units $237,948 $1,048 $39 $2 $301 $1,280 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $237,948 $1,048 $39 $2 $301 $1,280 ================================================================================= Total number of mutual fund shares 23,514,212 104,710 5,928 214 32,577 67,567 ================================================================================= Cost of mutual fund shares $235,664 $1,047 $43 $2 $293 $1,561 ================================================================================= SEE ACCOMPANYING NOTES.
Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING MFS(R) CAPITAL ING SALOMON OPPORTUNITIES ING MFS(R) ING OPCAP ING PIMCO ING SALOMON BROS. (SERVICE GLOBAL BALANCED TOTAL BROS. INVESTORS CLASS) GROWTH VALUE RETURN CAPITAL VALUE --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $72 $75 $126 $593 $9 $4 --------------------------------------------------------------------------------- Total assets 72 75 126 593 9 4 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $72 $75 $126 $593 $9 $4 ================================================================================= NET ASSETS Accumulation units $72 $75 $126 $593 $9 $4 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $72 $75 $126 $593 $9 $4 ================================================================================= Total number of mutual fund shares 3,834 8,956 13,107 56,245 762 373 ================================================================================= Cost of mutual fund shares $85 $75 $131 $599 $9 $4 ================================================================================= SEE ACCOMPANYING NOTES.
18 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING T. ROWE ING UBS ING SCUDDER PRICE TACTICAL ING VAN ING VP INTERNATIONAL GROWTH ASSET KAMPEN WORLDWIDE ING VP GROWTH EQUITY ALLOCATION COMSTOCK GROWTH BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $7 $144 $2 $1,737 $27,365 $49,597 --------------------------------------------------------------------------------- Total assets 7 144 2 1,737 27,365 49,597 LIABILITIES Payable to Golden American Life Insurance Company - - - - 7 7 --------------------------------------------------------------------------------- Total liabilities - - - - 7 7 --------------------------------------------------------------------------------- NET ASSETS $7 $144 $2 $1,737 $27,358 $49,590 ================================================================================= NET ASSETS Accumulation units $7 $144 $2 $1,737 $27,358 $49,590 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $7 $144 $2 $1,737 $27,358 $49,590 ================================================================================= Total number of mutual fund shares 918 4,150 94 208,228 5,077,001 3,665,695 ================================================================================= Cost of mutual fund shares $8 $162 $2 $1,730 $32,839 $49,791 ================================================================================= SEE ACCOMPANYING NOTES.
19 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS INDEX INDEX PLUS ING VP SMALL VALUE GROWTH LARGECAP PLUS MIDCAP SMALLCAP COMPANY OPPORTUNITY --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $46 $4,590 $5,910 $4,006 $156 $1,086 --------------------------------------------------------------------------------- Total assets 46 4,590 5,910 4,006 156 1,086 LIABILITIES Payable to Golden American Life Insurance Company - 1 1 1 - - --------------------------------------------------------------------------------- Total liabilities - 1 1 1 - - --------------------------------------------------------------------------------- NET ASSETS $46 $4,589 $5,909 $4,005 $156 $1,086 ================================================================================= NET ASSETS Accumulation units $46 $4,589 $5,909 $4,005 $156 $1,086 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $46 $4,589 $5,909 $4,005 $156 $1,086 ================================================================================= Total number of mutual fund shares 6,680 423,812 499,540 403,834 13,756 111,346 ================================================================================= Cost of mutual fund shares $50 $4,673 $6,054 $4,041 $209 $1,335 ================================================================================= SEE ACCOMPANYING NOTES.
20 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP LARGE ING VP ING VP GROWTH INTERNATIONAL COMPANY LARGECAP ING VP CONVERTIBLE OPPORTUNITIES VALUE VALUE GROWTH MAGNACAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $1,034 $9,921 $42 $958 $1,006 $12,340 --------------------------------------------------------------------------------- Total assets 1,034 9,921 42 958 1,006 12,340 LIABILITIES Payable to Golden American Life Insurance Company - 3 - - - 2 --------------------------------------------------------------------------------- Total liabilities - 3 - - - 2 --------------------------------------------------------------------------------- NET ASSETS $1,034 $9,918 $42 $958 $1,006 $12,338 ================================================================================= NET ASSETS Accumulation units $1,034 $9,918 $42 $958 $1,006 $12,338 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $1,034 $9,918 $42 $958 $1,006 $12,338 ================================================================================= Total number of mutual fund shares 109,462 2,638,582 4,816 120,960 160,390 1,801,417 ================================================================================= Cost of mutual fund shares $1,086 $12,343 $52 $1,116 $1,054 $14,542 ================================================================================= SEE ACCOMPANYING NOTES.
21 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP INVESCO VIF INVESCO VIF MIDCAP SMALLCAP - FINANCIAL - HEALTH INVESCO VIF INVESCO VIF OPPORTUNITIES OPPORTUNITIES SERVICES SCIENCES - LEISURE - UTILITIES --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $12 $30,125 $22,946 $30,564 $6,098 $7,784 --------------------------------------------------------------------------------- Total assets 12 30,125 22,946 30,564 6,098 7,784 LIABILITIES Payable to Golden American Life Insurance Company - 7 5 6 1 1 --------------------------------------------------------------------------------- Total liabilities - 7 5 6 1 1 --------------------------------------------------------------------------------- NET ASSETS $12 $30,118 $22,941 $30,558 $6,097 $7,783 ================================================================================= NET ASSETS Accumulation units $12 $30,118 $22,941 $30,558 $6,097 $7,783 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $12 $30,118 $22,941 $30,558 $6,097 $7,783 ================================================================================= Total number of mutual fund shares 2,752 2,840,607 2,185,295 2,222,861 715,754 697,486 ================================================================================= Cost of mutual fund shares $16 $42,110 $23,502 $32,262 $6,082 $7,988 ================================================================================= SEE ACCOMPANYING NOTES.
22 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
JANUS ASPEN JANUS ASPEN JANUS ASPEN SERIES JANUS ASPEN SERIES OPPENHEIMER OPPENHEIMER SERIES FLEXIBLE SERIES WORLDWIDE GLOBAL STRATEGIC BALANCED INCOME GROWTH GROWTH SECURITIES BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $496 $283 $192 $3,535 $205 $16 --------------------------------------------------------------------------------- Total assets 496 283 192 3,535 205 16 LIABILITIES Payable to Golden American Life Insurance Company - - - 1 - - --------------------------------------------------------------------------------- Total liabilities - - - 1 - - --------------------------------------------------------------------------------- NET ASSETS $496 $283 $192 $3,534 $205 $16 ================================================================================= NET ASSETS Accumulation units $496 $283 $192 $3,534 $205 $16 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $496 $283 $192 $3,534 $205 $16 ================================================================================= Total number of mutual fund shares 23,270 22,071 13,244 168,746 11,665 3,487 ================================================================================= Cost of mutual fund shares $525 $273 $224 $3,639 $244 $16 ================================================================================= SEE ACCOMPANYING NOTES.
23 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
PIMCO PIMCO STOCKSPLUS PIONEER PIONEER PIONEER HIGH GROWTH AND EQUITY-INCOME PIONEER MID-CAP SMALL YIELD INCOME VCT FUND VCT VALUE VCT COMPANY VCT --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $305,275 $181,641 $179 $20,067 $53,073 $3,418 --------------------------------------------------------------------------------- Total assets 305,275 181,641 179 20,067 53,073 3,418 LIABILITIES Payable to Golden American Life Insurance Company 38 4 - 3 11 1 --------------------------------------------------------------------------------- Total liabilities 38 4 - 3 11 1 --------------------------------------------------------------------------------- NET ASSETS $305,237 $181,637 $179 $20,064 $53,062 $3,417 ================================================================================= NET ASSETS Accumulation units $305,237 $181,637 $179 $20,064 $53,062 $3,417 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $305,237 $181,637 $179 $20,064 $53,062 $3,417 ================================================================================= Total number of mutual fund shares 42,576,723 25,044,953 11,764 1,315,882 3,571,539 376,869 ================================================================================= Cost of mutual fund shares $319,995 $240,989 $199 $21,406 $59,944 $3,947 ================================================================================= SEE ACCOMPANYING NOTES.
24 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
PRUDENTIAL SP JENNISON PUTNAM VT PROFUND VP PROFUND VP PROFUND VP PRUDENTIAL INTERNATIONAL GROWTH AND BULL EUROPE 30 SMALL-CAP JENNISON GROWTH INCOME --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $31,273 $15,629 $38,620 $37,756 $15,344 $1,662 --------------------------------------------------------------------------------- Total assets 31,273 15,629 38,620 37,756 15,344 1,662 LIABILITIES Payable to Golden American Life Insurance Company 8 2 8 8 3 - --------------------------------------------------------------------------------- Total liabilities 8 2 8 8 3 - --------------------------------------------------------------------------------- NET ASSETS $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 ================================================================================= NET ASSETS Accumulation units $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 ================================================================================= Total number of mutual fund shares 1,527,025 867,774 1,743,448 2,972,899 3,661,627 89,142 ================================================================================= Cost of mutual fund shares $32,082 $15,970 $40,061 $39,753 $15,921 $1,902 ================================================================================= SEE ACCOMPANYING NOTES.
25 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
SMITH PUTNAM VT BARNEY SMITH INTERNATIONAL INTERNATIONAL SMITH BARNEY BARNEY GROWTH AND PUTNAM VT SMITH BARNEY ALL CAP LARGE CAP MONEY INCOME VOYAGER II HIGH INCOME GROWTH VALUE MARKET --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $2,981 $1,645 $319 $201 $371 $143 --------------------------------------------------------------------------------- Total assets 2,981 1,645 319 201 371 143 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $2,981 $1,645 $319 $201 $371 $143 ================================================================================= NET ASSETS Accumulation units $2,981 $1,645 $319 $201 $371 $143 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $2,981 $1,645 $319 $201 $371 $143 ================================================================================= Total number of mutual fund shares 357,012 470,066 50,922 22,831 28,077 142,697 ================================================================================= Cost of mutual fund shares $3,378 $2,030 $533 $365 $563 $143 ================================================================================= SEE ACCOMPANYING NOTES.
26 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
UBS TACTICAL ALLOCATION -------------- ASSETS Investments in mutual funds at fair value $1,548 -------------- Total assets 1,548 LIABILITIES Payable to Golden American Life Insurance Company - -------------- Total liabilities - -------------- NET ASSETS $1,548 ============== NET ASSETS Accumulation units $1,548 Contracts in payout (annuitization) period - -------------- Total net assets $1,548 ============== Total number of mutual fund shares 159,134 ============== Cost of mutual fund shares $1,802 ============== SEE ACCOMPANYING NOTES.
27 This page is intentionally left blank. 28 This page is intentionally left blank. 29 This page is intentionally left blank. 30 This page is intentionally left blank. 31 Golden American Life Insurance Company Separate Account B Statement of Operations For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $632 $- $602 $- $- $523 ------------------------------------------------------------------------------- Total investment income 632 - 602 - - 523 Expenses: Mortality and expense risk and other charges 4,742 - 929 4,657 - 6,716 Annual administrative charges 161 - 32 159 - 248 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 286 - 32 520 - 523 Other contract charges 481 - 120 154 - 368 Amortization of deferred charges related to: Deferred sales load - - - 1 - 3 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 5,670 - 1,113 5,491 - 7,858 ------------------------------------------------------------------------------- Net investment income (loss) (5,038) - (511) (5,491) - (7,335) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (14,269) - (2,018) (211,562) - (87,705) Capital gains distributions 2 - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,018) (211,562) - (87,705) Net unrealized appreciation (depreciation) of investments (74,887) (1) (8,019) 97,211 (6) (39,390) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(94,192) $(1) $(10,548) $(119,842) $(6) $(134,430) =============================================================================== SEE ACCOMPANYING NOTES.
32 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GUARDIAN GCG TRUST GCG TRUST GCG TRUST GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING DEVELOPING DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD WORLD ADVISOR MID-CAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $9,185 $16 $- $- $228 ------------------------------------------------------------------------------- Total investment income - 9,185 16 - - 228 Expenses: Mortality and expense risk and other charges - 4,101 1 1,144 - 1,361 Annual administrative charges - 124 - 50 - 43 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 185 - 93 - 62 Other contract charges - 376 - 68 - 167 Amortization of deferred charges related to: Deferred sales load - 1 - 1 - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 4,787 1 1,356 - 1,633 ------------------------------------------------------------------------------- Net investment income (loss) - 4,398 15 (1,356) - (1,405) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - 1,692 - 1,932 - (1,645) Capital gains distributions - 545 1 - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - 2,237 1 1,932 - (1,645) Net unrealized appreciation (depreciation) of investments 1 10,717 (3) (8,556) (2) (16,949) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1 $17,352 $13 $(7,980) $(2) $(19,999) =============================================================================== SEE ACCOMPANYING NOTES.
33 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST EQUITY GCG TRUST EQUITY GCG TRUST MID-CAP EQUITY GROWTH EQUITY INCOME EQUITY ADVISOR GROWTH ADVISOR INCOME ADVISOR OPPORTUNITY ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $3 $- $5,698 $7 $437 ------------------------------------------------------------------------------- Total investment income - 3 - 5,698 7 437 Expenses: Mortality and expense risk and other charges - 19 1 6,536 1 5,459 Annual administrative charges - 1 - 217 - 191 Minimum death benefit guarantee charges - - - 3 - - Contingent deferred sales charges - - - 413 - 459 Other contract charges - 2 - 399 - 287 Amortization of deferred charges related to: Deferred sales load - - - 18 - 12 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 22 1 7,586 1 6,408 ------------------------------------------------------------------------------- Net investment income (loss) - (19) (1) (1,888) 6 (5,971) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (88) - (15,791) - (150,767) Capital gains distributions - - - 1,935 3 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (88) - (13,856) 3 (150,767) Net unrealized appreciation (depreciation) of investments (4) (170) (22) (56,537) (20) 21,921 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(277) $(23) $(72,281) $(11) $(134,817) =============================================================================== SEE ACCOMPANYING NOTES.
34 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST GCG TRUST FULLY FUNDAMENTAL OPPORTUNITY FOCUS FOCUS VALUE FULLY MANAGED GROWTH ADVISOR VALUE ADVISOR MANAGED ADVISOR FOCUS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $14,219 $10 $- ------------------------------------------------------------------------------- Total investment income - - - 14,219 10 - Expenses: Mortality and expense risk and other charges - 33 - 13,275 1 11 Annual administrative charges - 1 - 486 - - Minimum death benefit guarantee charges - - - 1 - - Contingent deferred sales charges - 1 - 905 - - Other contract charges - 4 - 881 - 1 Amortization of deferred charges related to: Deferred sales load - - - 15 - - Premium taxes - - - 1 - - ------------------------------------------------------------------------------- Total expenses - 39 - 15,564 1 12 ------------------------------------------------------------------------------- Net investment income (loss) - (39) - (1,345) 9 (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (201) - 3,703 1 (17) Capital gains distributions - - - 10,018 8 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (201) - 13,721 9 (17) Net unrealized appreciation (depreciation) of investments - (90) (2) (34,916) (20) (114) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $- $(330) $(2) $(22,540) $(2) $(143) =============================================================================== SEE ACCOMPANYING NOTES.
35 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GCG TRUST ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR HARD ASSETS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $386 ------------------------------------------------------------------------------- Total investment income - - - - - 386 Expenses: Mortality and expense risk and other charges - 70 1 11,796 - 912 Annual administrative charges - 3 - 421 - 33 Minimum death benefit guarantee charges - - - - - 1 Contingent deferred sales charges - 2 - 1,183 - 39 Other contract charges - 9 - 545 - 42 Amortization of deferred charges related to: Deferred sales load - - - 5 - 1 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 84 1 13,950 - 1,028 ------------------------------------------------------------------------------- Net investment income (loss) - (84) (1) (13,950) - (642) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (154) - (524,085) - (2,333) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (154) - (524,085) - (2,333) Net unrealized appreciation (depreciation) of investments (5) (208) 6 244,425 (5) (1,937) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5) $(446) $5 $(293,610) $(5) $(4,912) =============================================================================== SEE ACCOMPANYING NOTES.
36 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST INTERNATIONAL GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL EQUITY INTERNET ADVISOR EAFE EAFE ADVISOR EQUITY ADVISOR TOLLKEEPER ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $13 $- $1,039 $2 $- ------------------------------------------------------------------------------- Total investment income - 13 - 1,039 2 - Expenses: Mortality and expense risk and other charges - 31 - 2,195 1 142 Annual administrative charges - 1 - 68 - 5 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 205 - 3 Other contract charges - 5 - 81 - 19 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 37 - 2,549 1 169 ------------------------------------------------------------------------------- Net investment income (loss) - (24) - (1,510) 1 (169) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (285) - (18,218) - (3,259) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (285) - (18,218) - (3,259) Net unrealized appreciation (depreciation) of investments 1 29 (1) (1,709) - 32 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1 $(280) $(1) $(21,437) $1 $(3,396) =============================================================================== SEE ACCOMPANYING NOTES.
37 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST J.P. GCG TRUST J.P. MORGAN MORGAN GCG TRUST INTERNET GCG TRUST FLEMING FLEMING JANUS TOLLKEEPER GCG TRUST INVESTORS SMALL CAP SMALL CAP GROWTH AND ADVISOR INVESTORS ADVISOR EQUITY ADVISOR INCOME ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $771 $1 $- $- $527 ------------------------------------------------------------------------------- Total investment income - 771 1 - - 527 Expenses: Mortality and expense risk and other charges - 1,619 - 47 1 1,971 Annual administrative charges - 45 - 2 - 69 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 98 - 1 - 130 Other contract charges - 165 - 6 - 226 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 1,927 - 56 1 2,396 ------------------------------------------------------------------------------- Net investment income (loss) - (1,156) 1 (56) (1) (1,869) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (2,693) - (90) - (4,040) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (2,693) - (90) - (4,040) Net unrealized appreciation (depreciation) of investments (4) (23,933) - (411) (9) (22,039) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(27,782) $1 $(557) $(10) $(27,948) =============================================================================== SEE ACCOMPANYING NOTES.
38 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST JANUS GCG TRUST GCG TRUST GCG TRUST GROWTH AND GCG TRUST LARGE CAP LIMITED LIQUID INCOME LARGE CAP VALUE MATURITY GCG TRUST ASSET ADVISOR VALUE ADVISOR BOND LIQUID ASSET ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $1 $695 $- $16,692 $14,926 $2 ------------------------------------------------------------------------------- Total investment income 1 695 - 16,692 14,926 2 Expenses: Mortality and expense risk and other charges 1 4,710 1 7,274 16,952 4 Annual administrative charges - 154 - 236 607 - Minimum death benefit guarantee charges - - - 1 4 - Contingent deferred sales charges - 343 - 650 31,673 - Other contract charges - 473 - 352 686 - Amortization of deferred charges related to: Deferred sales load - - - 7 20 - Premium taxes - - - 1 7 - ------------------------------------------------------------------------------- Total expenses 1 5,680 1 8,521 49,949 4 ------------------------------------------------------------------------------- Net investment income (loss) - (4,985) (1) 8,171 (35,023) (2) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (12,529) - 5,336 - - Capital gains distributions - - - 1,065 - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (12,529) - 6,401 - - Net unrealized appreciation (depreciation) of investments (15) (66,466) (14) 9,830 - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(15) $(83,980) $(15) $24,402 $(35,023) $(2) =============================================================================== SEE ACCOMPANYING NOTES.
39 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST MANAGED GLOBAL MID-CAP GROWTH GCG TRUST REAL ESTATE GLOBAL ADVISOR GROWTH ADVISOR REAL ESTATE ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $306 $- $- $- $6,320 $7 ------------------------------------------------------------------------------- Total investment income 306 - - - 6,320 7 Expenses: Mortality and expense risk and other charges 3,679 - 9,857 - 2,682 - Annual administrative charges 115 - 303 - 104 - Minimum death benefit guarantee charges - - 1 - - - Contingent deferred sales charges 215 - 836 - 181 - Other contract charges 267 - 578 - 184 - Amortization of deferred charges related to: Deferred sales load 7 - 6 - 5 - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 4,283 - 11,581 - 3,156 - ------------------------------------------------------------------------------- Net investment income (loss) (3,977) - (11,581) - 3,164 7 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (2,654) - (502,998) - 3,631 - Capital gains distributions - - - - 1,891 2 ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (2,654) - (502,998) - 5,522 2 Net unrealized appreciation (depreciation) of investments (50,119) (2) 41,552 (9) (16,719) (2) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(56,750) $(2) $(473,027) $(9) $(8,033) $7 =============================================================================== SEE ACCOMPANYING NOTES.
40 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST RESEARCH SPECIAL SITUATIONS STRATEGIC EQUITY RESEARCH ADVISOR SITUATIONS ADVISOR EQUITY ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $2,140 $- $- $- $- $- ------------------------------------------------------------------------------- Total investment income 2,140 - - - - - Expenses: Mortality and expense risk and other charges 8,315 - 411 - 3,062 - Annual administrative charges 274 - 17 - 104 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 895 - 23 - 320 - Other contract charges 398 - 53 - 184 - Amortization of deferred charges related to: Deferred sales load 1 - - - 2 - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 9,883 - 504 - 3,672 - ------------------------------------------------------------------------------- Net investment income (loss) (7,743) - (504) - (3,672) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (159,946) - (1,565) - (113,239) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (159,946) - (1,565) - (113,239) - Net unrealized appreciation (depreciation) of investments 3,501 (3) (6,229) (1) 38,088 (1) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(164,188) $(3) $(8,298) $(1) $(78,823) $(1) =============================================================================== SEE ACCOMPANYING NOTES.
41 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST VAN KAMPEN GCG TRUST TOTAL GCG TRUST VALUE VAN KAMPEN GROWTH AND TOTAL RETURN VALUE EQUITY GROWTH AND INCOME RETURN ADVISOR EQUITY ADVISOR INCOME ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $19,811 $18 $1,325 $1 $5,457 $6 ------------------------------------------------------------------------------- Total investment income 19,811 18 1,325 1 5,457 6 Expenses: Mortality and expense risk and other charges 13,476 1 3,024 - 10,153 1 Annual administrative charges 457 - 102 - 334 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 1,115 - 279 - 1,058 - Other contract charges 705 - 150 - 323 - Amortization of deferred charges related to: Deferred sales load 5 - 3 - 18 - Premium taxes 1 - - - 1 - ------------------------------------------------------------------------------- Total expenses 15,759 1 3,558 - 11,887 1 ------------------------------------------------------------------------------- Net investment income (loss) 4,052 17 (2,233) 1 (6,430) 5 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 295 1 (11,165) - (9,833) 1 Capital gains distributions 409 - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions 704 1 (11,165) - (9,833) 1 Net unrealized appreciation (depreciation) of investments (67,592) (29) (27,107) (3) (100,836) (12) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(62,836) $(11) $(40,505) $(2) $(117,099) $(6) =============================================================================== SEE ACCOMPANYING NOTES.
42 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
AIM V.I. DENT AIM V.I. AIM V.I. ALLIANCE DEMOGRAPHIC AIM V.I. CAPITAL AIM V.I. PREMIER BERNSTEIN TRENDS GROWTH APPRECIATION CORE EQUITY EQUITY VALUE ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $3 ------------------------------------------------------------------------------- Total investment income - - - - - 3 Expenses: Mortality and expense risk and other charges 140 11 - - - 26 Annual administrative charges 5 - - - - 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - - - - - Other contract charges 11 - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 159 11 - - - 27 ------------------------------------------------------------------------------- Net investment income (loss) (159) (11) - - - (24) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (1,222) (108) - - - (19) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (1,222) (108) - - - (19) Net unrealized appreciation (depreciation) of investments (2,117) (102) (7) (3) (7) (241) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3,498) $(221) $(7) $(3) $(7) $(284) =============================================================================== SEE ACCOMPANYING NOTES.
43 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ALLIANCE ALLIANCE FIDELITY(R) FIDELITY(R) FIDELITY(R) FIDELITY(R) GROWTH AND PREMIER VIP VIP VIP INCOME GROWTH VIP GROWTH EQUITY-INCOME CONTRAFUND(R) OVERSEAS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $144 $- $1 $102 $11 $- ------------------------------------------------------------------------------- Total investment income 144 - 1 102 11 - Expenses: Mortality and expense risk and other charges 54 25 114 140 44 - Annual administrative charges 1 1 5 5 1 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - 4 4 1 - Other contract charges - - 8 6 - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 58 26 131 155 46 - ------------------------------------------------------------------------------- Net investment income (loss) 86 (26) (130) (53) (35) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (72) (413) (725) (1,606) (35) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (72) (413) (725) (1,606) (35) - Net unrealized appreciation (depreciation) of investments (1,016) (166) (1,237) 62 (331) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(1,002) $(605) $(2,092) $(1,597) $(401) $- =============================================================================== SEE ACCOMPANYING NOTES.
44 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP FRANKLIN GALAXY VIP GALAXY VIP HIGH SMALL CAP GREENWICH ASSET GALAXY VIP GROWTH AND QUALITY VALUE APPRECIATION ALLOCATION EQUITY INCOME BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $10 $20 $1 $- $6 ------------------------------------------------------------------------------- Total investment income - 10 20 1 - 6 Expenses: Mortality and expense risk and other charges - 9 15 10 2 2 Annual administrative charges - 1 1 1 - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 1 - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 10 16 12 2 2 ------------------------------------------------------------------------------- Net investment income (loss) - - 4 (11) (2) 4 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (11) (192) (84) (5) 2 Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (11) (192) (84) (5) 2 Net unrealized appreciation (depreciation) of investments (3) (130) (40) (126) (42) 3 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3) $(141) $(228) $(221) $(49) $9 =============================================================================== SEE ACCOMPANYING NOTES.
45 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP SMALL ING GET ING GET ING GET ING GET ING GET COMPANY FUND - FUND - FUND - FUND - FUND - GROWTH SERIES N SERIES P SERIES Q SERIES R SERIES S ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $396 $109 $3,320 $2,458 $1,400 ------------------------------------------------------------------------------- Total investment income - 396 109 3,320 2,458 1,400 Expenses: Mortality and expense risk and other charges 1 597 3,008 2,883 2,050 1,464 Annual administrative charges - 8 (1,381) 42 36 28 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 16 95 60 52 40 Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 1 621 1,722 2,985 2,138 1,532 ------------------------------------------------------------------------------- Net investment income (loss) (1) (225) (1,613) 335 320 (132) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (7) 1 (70) (3) 48 (15) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (7) 1 (70) (3) 48 (15) Net unrealized appreciation (depreciation) of investments (23) (538) 1,644 217 1,356 1,013 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(31) $(762) $(39) $549 $1,724 $866 =============================================================================== SEE ACCOMPANYING NOTES.
46 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING ING MFS(R) AMERICAN CAPITAL ING GET ING GET CENTURY ING J.P. OPPORTUNITIES FUND - FUND - ING ALGER SMALL CAP MORGAN MID (INITIAL SERIES T SERIES U GROWTH VALUE CAP VALUE CLASS) ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $26 $- $- $- $1 $- ------------------------------------------------------------------------------- Total investment income 26 - - - 1 - Expenses: Mortality and expense risk and other charges 304 - - - 1 17 Annual administrative charges 17 - - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 324 - - - 1 17 ------------------------------------------------------------------------------- Net investment income (loss) (298) - - - - (17) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 8 - - - (4) (59) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions 8 - - - (4) (59) Net unrealized appreciation (depreciation) of investments 2,300 - (4) - 7 (329) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $2,010 $- $(4) $- $3 $(405) =============================================================================== SEE ACCOMPANYING NOTES.
47 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING MFS(R) CAPITAL ING SALOMON OPPORTUNITIES ING MFS(R) ING OPCAP ING PIMCO ING SALOMON BROS. (SERVICE GLOBAL BALANCED TOTAL BROS. INVESTORS CLASS) GROWTH VALUE RETURN CAPITAL VALUE ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $14 $- $- ------------------------------------------------------------------------------- Total investment income - - - 14 - - Expenses: Mortality and expense risk and other charges - - - 1 - - Annual administrative charges - - - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - - - 1 - - ------------------------------------------------------------------------------- Net investment income (loss) - - - 13 - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - - - 1 - - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - - - 1 - - Net unrealized appreciation (depreciation) of investments (13) - (5) (5) - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(13) $- $(5) $9 $- $- =============================================================================== SEE ACCOMPANYING NOTES.
48 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING T. ROWE ING UBS ING SCUDDER PRICE TACTICAL ING VAN ING VP INTERNATIONAL GROWTH ASSET KAMPEN WORLDWIDE ING VP GROWTH EQUITY ALLOCATION COMSTOCK GROWTH BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $7 $4 $1,391 ------------------------------------------------------------------------------- Total investment income - - - 7 4 1,391 Expenses: Mortality and expense risk and other charges - - - 4 443 220 Annual administrative charges - - - - 16 11 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 1 16 33 Other contract charges - - - - 65 21 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - - - 5 540 285 ------------------------------------------------------------------------------- Net investment income (loss) - - - 2 (536) 1,106 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - - - - (2,830) 134 Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - - - - (2,830) 134 Net unrealized appreciation (depreciation) of investments - (19) - 7 (4,792) (195) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $- $(19) $- $9 $(8,158) $1,045 =============================================================================== SEE ACCOMPANYING NOTES.
49 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS INDEX PLUS INDEX PLUS ING VP SMALL VALUE GROWTH LARGECAP MIDCAP SMALLCAP COMPANY OPPORTUNITY ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $4 $11 $10 $1 $3 ------------------------------------------------------------------------------- Total investment income - 4 11 10 1 3 Expenses: Mortality and expense risk and other charges - 34 57 40 1 14 Annual administrative charges - 1 1 1 - 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - 1 1 - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 35 59 42 1 15 ------------------------------------------------------------------------------- Net investment income (loss) - (31) (48) (32) - (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (505) (505) (416) (5) (45) Capital gains distributions - - - 22 - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (505) (505) (394) (5) (45) Net unrealized appreciation (depreciation) of investments (5) (104) (180) (90) (53) (250) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5) $(640) $(733) $(516) $(58) $(307) =============================================================================== SEE ACCOMPANYING NOTES.
50 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP LARGE ING VP ING VP GROWTH INTERNATIONAL COMPANY LARGECAP ING VP CONVERTIBLE OPPORTUNITIES VALUE VALUE GROWTH MAGNACAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $23 $- $- $9 $4 $99 ------------------------------------------------------------------------------- Total investment income 23 - - 9 4 99 Expenses: Mortality and expense risk and other charges 11 141 - 10 13 166 Annual administrative charges - 5 - - - 5 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 4 - - - 8 Other contract charges - 20 - - - 16 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 11 170 - 10 13 195 ------------------------------------------------------------------------------- Net investment income (loss) 12 (170) - (1) (9) (96) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (15) (662) - (40) (292) (437) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (15) (662) - (40) (292) (437) Net unrealized appreciation (depreciation) of investments (53) (2,425) (10) (163) (52) (2,222) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(56) $(3,257) $(10) $(204) $(353) $(2,755) =============================================================================== SEE ACCOMPANYING NOTES.
51 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP INVESCO VIF INVESCO VIF MIDCAP SMALLCAP - FINANCIAL - HEALTH INVESCO VIF INVESCO VIF OPPORTUNITIES OPPORTUNITIES SERVICES SCIENCES - LEISURE - UTILITIES ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $148 $- $- $40 ------------------------------------------------------------------------------- Total investment income - - 148 - - 40 Expenses: Mortality and expense risk and other charges - 408 211 389 33 58 Annual administrative charges - 12 8 12 1 2 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 8 7 10 1 2 Other contract charges - 65 18 23 5 6 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 493 244 434 40 68 ------------------------------------------------------------------------------- Net investment income (loss) - (493) (96) (434) (40) (28) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (1,185) (1,999) (4,162) (157) (205) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (1,185) (1,999) (4,162) (157) (205) Net unrealized appreciation (depreciation) of investments (4) (12,282) (590) (1,617) 16 (198) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(13,960) $(2,685) $(6,213) $(181) $(431) =============================================================================== SEE ACCOMPANYING NOTES.
52 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
JANUS JANUS ASPEN ASPEN JANUS ASPEN SERIES JANUS ASPEN SERIES OPPENHEIMER OPPENHEIMER SERIES FLEXIBLE SERIES WORLDWIDE GLOBAL STRATEGIC BALANCED INCOME GROWTH GROWTH SECURITIES BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $8 $6 $- $21 $- $- ------------------------------------------------------------------------------- Total investment income 8 6 - 21 - - Expenses: Mortality and expense risk and other charges 2 1 1 60 1 - Annual administrative charges - - - 1 - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 2 1 1 61 1 - ------------------------------------------------------------------------------- Net investment income (loss) 6 5 (1) (40) (1) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (3) - - (682) (6) (1) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (3) - - (682) (6) (1) Net unrealized appreciation (depreciation) of investments (29) 10 (32) (169) (38) 1 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(26) $15 $(33) $(891) $(45) $- =============================================================================== SEE ACCOMPANYING NOTES.
53 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
PIMCO STOCKSPLUS PIONEER PIONEER PIONEER PIMCO HIGH GROWTH AND EQUITY-INCOME PIONEER MID-CAP SMALL YIELD INCOME VCT FUND VCT VALUE VCT COMPANY VCT ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $21,664 $5,561 $3 $124 $195 $1 ------------------------------------------------------------------------------- Total investment income 21,664 5,561 3 124 195 1 Expenses: Mortality and expense risk and other charges 4,283 3,303 1 191 584 39 Annual administrative charges 133 96 - 5 23 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 340 374 - 3 18 - Other contract charges 248 151 - 23 48 - Amortization of deferred charges related to: Deferred sales load 1 1 - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 5,005 3,925 1 222 673 40 ------------------------------------------------------------------------------- Net investment income (loss) 16,659 1,636 2 (98) (478) (39) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (18,706) (63,970) - (1,493) (1,011) (35) Capital gains distributions - - - - 1,087 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (18,706) (63,970) - (1,493) 76 (35) Net unrealized appreciation (depreciation) of investments (3,581) 10,124 (21) (1,359) (6,968) (577) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5,628) $(52,210) $(19) $(2,950) $(7,370) $(651) =============================================================================== SEE ACCOMPANYING NOTES.
54 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
PRUDENTIAL SP JENNISON PUTNAM VT PROFUND VP PROFUND VP PROFUND VP PRUDENTIAL INTERNATIONAL GROWTH AND BULL EUROPE 30 SMALL-CAP JENNISON GROWTH INCOME ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $19 ------------------------------------------------------------------------------- Total investment income - - - - - 19 Expenses: Mortality and expense risk and other charges 422 151 516 691 251 19 Annual administrative charges 19 3 17 20 8 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 20 31 58 28 12 - Other contract charges 27 6 37 82 26 - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 488 191 628 821 297 19 ------------------------------------------------------------------------------- Net investment income (loss) (488) (191) (628) (821) (297) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (7,045) (1,793) (6,274) (12,816) (2,827) (30) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (7,045) (1,793) (6,274) (12,816) (2,827) (30) Net unrealized appreciation (depreciation) of investments (1,022) (425) (1,582) (2,790) (897) (254) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(8,555) $(2,409) $(8,484) $(16,427) $(4,021) $(284) =============================================================================== SEE ACCOMPANYING NOTES.
55 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
SMITH PUTNAM VT BARNEY SMITH INTERNATIONAL SMITH INTERNATIONAL SMITH BARNEY BARNEY GROWTH AND PUTNAM VT BARNEY HIGH ALL CAP LARGE CAP MONEY INCOME VOYAGER II INCOME GROWTH VALUE MARKET ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $6 $- $82 $2 $18 $2 ------------------------------------------------------------------------------- Total investment income 6 - 82 2 18 2 Expenses: Mortality and expense risk and other charges 34 19 5 3 7 2 Annual administrative charges 1 1 - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - 8 Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 35 20 5 3 7 10 ------------------------------------------------------------------------------- Net investment income (loss) (29) (20) 77 (1) 11 (8) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (12) (8) (33) (9) (24) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (12) (8) (33) (9) (24) - Net unrealized appreciation (depreciation) of investments (412) (431) (62) (67) (133) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(453) $(459) $(18) $(77) $(146) $(8) =============================================================================== SEE ACCOMPANYING NOTES.
56 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
UBS TACTICAL ALLOCATION -------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $5 -------------- Total investment income 5 Expenses: Mortality and expense risk and other charges 17 Annual administrative charges - Minimum death benefit guarantee charges - Contingent deferred sales charges - Other contract charges - Amortization of deferred charges related to: Deferred sales load - Premium taxes - -------------- Total expenses 17 -------------- Net investment income (loss) (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (15) Capital gains distributions - -------------- Net realized gain (loss) on investments and capital gains distributions (15) Net unrealized appreciation (depreciation) of investments (299) -------------- Net increase (decrease) in net assets resulting from operations $(326) ============== SEE ACCOMPANYING NOTES.
57 This page is intentionally left blank. 58 This page is intentionally left blank. 59 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $104,883 $- $4,696 $463,399 $- $422,097 Increase (decrease) in net assets: Operations: Net investment income (loss) (818) - (27) (7,708) - (7,294) Net realized gain (loss) on investments and capital gains distributions (209) - (61) (21,430) - (283,317) Net unrealized appreciation (depreciation) of investments (2,272) - (644) (46,715) - 276,874 --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (3,299) - (732) (75,853) - (13,737) Changes from principal transactions: Purchase payments 110,856 - 30,995 40,288 - 72,626 Contract distributions and terminations (9,054) - (753) (22,815) - (19,753) Transfer payments from (to) other Divisions (including the fixed accounts), net 95,928 - 15,035 (9,586) - 19,278 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 1 - 2 --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 197,730 - 45,278 7,888 - 72,153 --------------------------------------------------------------------------- Total increase (decrease) 194,431 - 44,546 (67,965) - 58,416 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 299,314 - 49,242 395,434 - 480,513 Increase (decrease) in net assets: Operations: Net investment income (loss) (5,038) - (511) (5,491) - (7,335) Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,018) (211,562) - (87,705) Net unrealized appreciation (depreciation) of investments (74,887) (1) (8,019) 97,211 (6) (39,390) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (94,192) (1) (10,548) (119,842) (6) (134,430) Changes from principal transactions: Purchase payments 83,489 136 11,948 22,649 150 64,429 Contract distributions and terminations (12,299) - (2,730) (16,524) - (23,540) Transfer payments from (to) other Divisions (including the fixed accounts), net (28,572) 41 (671) (34,948) 4 (45,826) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 42,618 177 8,547 (28,823) 154 (4,937) --------------------------------------------------------------------------- Total increase (decrease) (51,574) 176 (2,001) (148,665) 148 (139,367) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $247,740 $176 $47,241 $246,769 $148 $341,146 =========================================================================== SEE ACCOMPANYING NOTES.
60 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GCG TRUST GUARDIAN GCG TRUST GCG TRUST DEVELOPING GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING WORLD DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD ADVISOR MID-CAP ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $40,000 $- $54,398 $- $11,358 Increase (decrease) in net assets: Operations: Net investment income (loss) - (857) - (422) - (408) Net realized gain (loss) on investments and capital gains distributions - (1,057) - (8,712) - (602) Net unrealized appreciation (depreciation) of investments - 2,969 - 4,320 - 668 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - 1,055 - (4,814) - (342) Changes from principal transactions: Purchase payments - 45,161 - 11,440 - 33,892 Contract distributions and terminations - (3,062) - (3,183) - (956) Transfer payments from (to) other Divisions (including the fixed accounts), net - 31,839 - 13,624 - 13,862 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - 1 - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 73,941 - 21,882 - 46,798 ------------------------------------------------------------------------------- Total increase (decrease) - 74,996 - 17,068 - 46,456 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 114,996 - 71,466 - 57,814 Increase (decrease) in net assets: Operations: Net investment income (loss) - 4,398 15 (1,356) - (1,405) Net realized gain (loss) on investments and capital gains distributions - 2,237 1 1,932 - (1,645) Net unrealized appreciation (depreciation) of investments 1 10,717 (3) (8,556) (2) (16,949) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 1 17,352 13 (7,980) (2) (19,999) Changes from principal transactions: Purchase payments 85 135,019 872 11,601 81 38,230 Contract distributions and terminations - (11,442) - (4,659) - (3,572) Transfer payments from (to) other Divisions (including the fixed accounts), net 235 169,200 107 (10,428) - 18,686 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 320 292,777 979 (3,486) 81 53,344 ------------------------------------------------------------------------------- Total increase (decrease) 321 310,129 992 (11,466) 79 33,345 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $321 $425,125 $992 $60,000 $79 $91,159 =============================================================================== SEE ACCOMPANYING NOTES.
61 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST GCG TRUST EQUITY GCG TRUST EQUITY MID-CAP EMERGING EQUITY GROWTH EQUITY INCOME ADVISOR MARKETS GROWTH ADVISOR INCOME ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $19,953 $- $- $ 291,793 $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (46) - - 814 - Net realized gain (loss) on investments and capital gains distributions - (1,106) - - (1,482) - Net unrealized appreciation (depreciation) of investments - 898 - - (822) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (254) - - (1,490) - Changes from principal transactions: - - 78,113 - Purchase payments - 305 - - (19,657) - Contract distributions and terminations - (580) - - 68,000 - Transfer payments from (to) other Divisions (including the fixed accounts), net - (19,424) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 4 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (19,699) - - 126,460 - ------------------------------------------------------------------------------- Total increase (decrease) - (19,953) - - 124,970 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - 416,763 - Increase (decrease) in net assets: Operations: Net investment income (loss) - - (19) (1) (1,888) 6 Net realized gain (loss) on investments and capital gains distributions - - (88) - (13,856) 3 Net unrealized appreciation (depreciation) of investments (4) - (170) (22) (56,537) (20) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (4) - (277) (23) (72,281) (11) Changes from principal transactions: Purchase payments 136 - 2,518 468 85,631 591 Contract distributions and terminations - - (48) - (20,848) - Transfer payments from (to) other Divisions (including the fixed accounts), net 88 - 2,169 13 403 60 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 2 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 224 - 4,639 481 65,188 651 ------------------------------------------------------------------------------- Total increase (decrease) 220 - 4,362 458 (7,093) 640 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $220 $- $4,362 $458 $409,670 $640 =============================================================================== SEE ACCOMPANYING NOTES.
62 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST FULLY EQUITY OPPORTUNITY GCG TRUST FOCUS VALUE FULLY MANAGED OPPORTUNITY ADVISOR FOCUS VALUE ADVISOR MANAGED ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $477,934 $- $- $- $345,651 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (7,700) - - - 7,691 - Net realized gain (loss) on investments and capital gains distributions (15,294) - - - 21,548 - Net unrealized appreciation (depreciation) of investments (50,801) - - - 1,318 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (73,795) - - - 30,557 - Changes from principal transactions: Purchase payments 75,117 - - - 146,482 - Contract distributions and terminations (21,611) - - - (26,120) - Transfer payments from (to) other Divisions (including the fixed accounts), net (17,438) - - - 148,392 - Additions to assets retained in the Account by Golden American Life Insurance Company 2 - - - 9 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 36,070 - - - 268,763 - ------------------------------------------------------------------------------- Total increase (decrease) (37,725) - - - 299,320 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 440,209 - - - 644,971 - Increase (decrease) in net assets: Operations: Net investment income (loss) (5,971) - (39) - (1,345) 9 Net realized gain (loss) on investments and capital gains distributions (150,767) - (201) - 13,721 9 Net unrealized appreciation (depreciation) of investments 21,921 - (90) (2) (34,916) (20) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (134,817) - (330) (2) (22,540) (2) Changes from principal transactions: Purchase payments 34,448 32 3,044 23 223,105 900 Contract distributions and terminations (17,174) - (96) - (43,624) - Transfer payments from (to) other Divisions (including the fixed accounts), net (41,715) 2 3,313 27 133,166 (4) Additions to assets retained in the Account by Golden American Life Insurance Company 3 - - - 1 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (24,438) 34 6,261 50 312,648 896 ------------------------------------------------------------------------------- Total increase (decrease) (159,255) 34 5,931 48 290,108 894 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $280,954 $34 $5,931 $48 $935,079 $894 =============================================================================== SEE ACCOMPANYING NOTES.
63 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST FUNDAMENTAL GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GROWTH FOCUS ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $1,474,980 $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - (21,671) - Net realized gain (loss) on investments and capital gains distributions - - - - (652,014) - Net unrealized appreciation (depreciation) of investments - - - - 196,709 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - (476,976) - Changes from principal transactions: Purchase payments - - - - 150,918 - Contract distributions and terminations - - - - (53,998) - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - - (92,035) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 3 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - - - 4,888 - ------------------------------------------------------------------------------- Total increase (decrease) - - - - (472,088) - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - 1,002,892 - Increase (decrease) in net assets: Operations: Net investment income (loss) (12) - (84) (1) (13,950) - Net realized gain (loss) on investments and capital gains distributions (17) - (154) - (524,085) - Net unrealized appreciation (depreciation) of investments (114) (5) (208) 6 244,425 (5) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (143) (5) (446) 5 (293,610) (5) Changes from principal transactions: Purchase payments 1,709 99 7,816 690 56,919 68 Contract distributions and terminations (21) - (161) - (35,962) - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,197 14 7,461 13 (170,198) 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2,885 113 15,116 703 (149,241) 97 ------------------------------------------------------------------------------- Total increase (decrease) 2,742 108 14,670 708 (442,851) 92 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $2,742 $108 $14,670 $708 $560,041 $92 =============================================================================== SEE ACCOMPANYING NOTES.
64 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST GROWTH GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL ADVISOR HARD ASSETS ADVISOR EAFE EAFE ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $41,509 $- $- $- $194,618 Increase (decrease) in net assets: Operations: Net investment income (loss) - (662) - - - (3,180) Net realized gain (loss) on investments and capital gains distributions - (1,681) - - - (66,811) Net unrealized appreciation (depreciation) of investments - (3,365) - - - 30,006 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (5,708) - - - (39,985) Changes from principal transactions: Purchase payments - 6,781 - - - 21,029 Contract distributions and terminations - (1,927) - - - (7,978) Transfer payments from (to) other Divisions (including the fixed accounts), net - (7,446) - - - (23,623) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (2,592) - - - (10,572) ------------------------------------------------------------------------------- Total increase (decrease) - (8,300) - - - (50,557) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 33,209 - - - 144,061 Increase (decrease) in net assets: Operations: Net investment income (loss) - (642) - (24) - (1,510) Net realized gain (loss) on investments and capital gains distributions - (2,333) - (285) - (18,218) Net unrealized appreciation (depreciation) of investments (5) (1,937) 1 29 (1) (1,709) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (5) (4,912) 1 (280) (1) (21,437) Changes from principal transactions: Purchase payments 68 10,388 63 2,749 166 15,966 Contract distributions and terminations - (2,996) - (61) - (6,869) Transfer payments from (to) other Divisions (including the fixed accounts), net 29 32,064 33 2,582 - (11,244) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 97 39,456 96 5,270 166 (2,147) ------------------------------------------------------------------------------- Total increase (decrease) 92 34,544 97 4,990 165 (23,584) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $92 $67,753 $97 $4,990 $165 $120,477 =============================================================================== SEE ACCOMPANYING NOTES.
65 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST J.P. MORGAN INTERNATIONAL GCG TRUST INTERNET GCG TRUST FLEMING EQUITY INTERNET TOLLKEEPER GCG TRUST INVESTORS SMALL CAP ADVISOR TOLLKEEPER ADVISOR INVESTORS ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $21,558 $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (27) - (325) - - Net realized gain (loss) on investments and capital gains distributions - (152) - (368) - - Net unrealized appreciation (depreciation) of investments - (1) - (3,000) - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (180) - (3,693) - - Changes from principal transactions: Purchase payments - 3,417 - 41,981 - - Contract distributions and terminations - (36) - (2,329) - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 2,188 - 33,883 - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 5,569 - 73,535 - - ------------------------------------------------------------------------------- Total increase (decrease) - 5,389 - 69,842 - - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 5,389 - 91,400 - - Increase (decrease) in net assets: Operations: Net investment income (loss) 1 (169) - (1,156) 1 (56) Net realized gain (loss) on investments and capital gains distributions - (3,259) - (2,693) - (90) Net unrealized appreciation (depreciation) of investments - 32 (4) (23,933) - (411) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 1 (3,396) (4) (27,782) 1 (557) Changes from principal transactions: Purchase payments 218 7,425 42 33,925 267 5,453 Contract distributions and terminations - (281) - (3,916) - (116) Transfer payments from (to) other Divisions (including the fixed accounts), net 35 3,665 15 (1,491) 29 4,710 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 253 10,809 57 28,518 296 10,047 ------------------------------------------------------------------------------- Total increase (decrease) 254 7,413 53 736 297 9,490 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $254 $12,802 $53 $92,136 $297 $9,490 =============================================================================== SEE ACCOMPANYING NOTES.
66 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST J.P GCG TRUST MORGAN GCG TRUST JANUS GCG TRUST GCG TRUST FLEMING JANUS GROWTH AND GCG TRUST LARGE CAP LIMITED SMALL CAP GROWTH AND INCOME LARGE CAP VALUE MATURITY ADVISOR INCOME ADVISOR VALUE ADVISOR BOND ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $12,726 $- $98,545 $- $200,958 Increase (decrease) in net assets: Operations: Net investment income (loss) - (420) - (2,813) - 8,924 Net realized gain (loss) on investments and capital gains distributions - (175) - (343) - 4,818 Net unrealized appreciation (depreciation) of investments - (3,724) - (1,637) - 3,378 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (4,319) - (4,793) - 17,120 Changes from principal transactions: Purchase payments - 56,119 - 114,157 - 94,671 Contract distributions and terminations - (1,615) - (6,489) - (16,054) Transfer payments from (to) other Divisions (including the fixed accounts), net - 29,809 - 74,069 - 67,367 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 84,313 - 181,737 - 145,984 ------------------------------------------------------------------------------- Total increase (decrease) - 79,994 - 176,944 - 163,104 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 92,720 - 275,489 - 364,062 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (1,869) - (4,985) (1) 8,171 Net realized gain (loss) on investments and capital gains distributions - (4,040) - (12,529) - 6,401 Net unrealized appreciation (depreciation) of investments (9) (22,039) (15) (66,466) (14) 9,830 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from (10) (27,948) (15) (83,980) (15) 24,402 operations Changes from principal transactions: Purchase payments 462 55,155 541 90,790 307 96,571 Contract distributions and terminations - (4,880) - (11,843) - (30,028) Transfer payments from (to) other Divisions (including the fixed accounts), net 59 15,298 61 25,232 41 103,934 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 521 65,573 602 104,179 348 170,477 ------------------------------------------------------------------------------- Total increase (decrease) 511 37,625 587 20,199 333 194,879 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $511 $130,345 $587 $295,688 $333 $558,941 =============================================================================== SEE ACCOMPANYING NOTES.
67 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST LIQUID GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST ASSET MANAGED GLOBAL MID-CAP GROWTH LIQUID ASSET ADVISOR GLOBAL ADVISOR GROWTH ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $679,666 $- $228,347 $- $1,158,061 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (1,253) - (3,832) - (14,522) - Net realized gain (loss) on investments and capital gains distributions - - (98,932) - (607,476) - Net unrealized appreciation (depreciation) of investments - - 72,788 - 312,790 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (1,253) - (29,976) - (309,208) - Changes from principal transactions: Purchase payments 591,523 - 58,076 - 180,227 - Contract distributions and terminations (449,815) - (10,294) - (45,653) - Transfer payments from (to) other Divisions (including the fixed accounts), net 251,363 - 4,232 - (55,138) - Additions to assets retained in the Account by Golden American Life Insurance Company 1 - 3 - 1 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 393,072 - 52,017 - 79,437 - ------------------------------------------------------------------------------- Total increase (decrease) 391,819 - 22,041 - (229,771) - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,071,485 - 250,388 - 928,290 - Increase (decrease) in net assets: Operations: Net investment income (loss) (35,023) (2) (3,977) - (11,581) - Net realized gain (loss) on investments and capital gains distributions - - (2,654) - (502,998) - Net unrealized appreciation (depreciation) of investments - - (50,119) (2) 41,552 (9) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (35,023) (2) (56,750) (2) (473,027) (9) Changes from principal transactions: Purchase payments 454,243 3,191 48,234 31 86,280 231 Contract distributions and terminations (594,093) - (12,917) - (30,288) - Transfer payments from (to) other Divisions (including the fixed accounts), net 126,567 (1,389) (5,872) 21 (75,674) 327 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (13,283) 1,802 29,446 52 (19,682) 558 ------------------------------------------------------------------------------- Total increase (decrease) (48,306) 1,800 (27,304) 50 (492,709) 549 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $1,023,179 $1,800 $223,084 $50 $435,581 $549 =============================================================================== SEE ACCOMPANYING NOTES.
68 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST MARKET GCG TRUST REAL ESTATE GCG TRUST RESEARCH SPECIAL MANAGER REAL ESTATE ADVISOR RESEARCH ADVISOR SITUATIONS ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $6,619 $100,303 $- $800,528 $- $5,891 Increase (decrease) in net assets: Operations: Net investment income (loss) (545) 2,682 - (11,613) - (241) Net realized gain (loss) on investments and capital gains distributions 3,429 6,128 - 2,768 - (359) Net unrealized appreciation (depreciation) of investments (3,695) (3,608) - (178,581) - (769) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (811) 5,202 - (187,426) - (1,369) Changes from principal transactions: Purchase payments (168) 23,104 - 98,910 - 12,758 Contract distributions and terminations (10) (4,974) - (32,070) - (535) Transfer payments from (to) other Divisions (including the fixed accounts), net (5,630) 2,531 - (42,232) - 7,580 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - 1 - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (5,808) 20,664 - 24,609 - 19,803 ------------------------------------------------------------------------------- Total increase (decrease) (6,619) 25,866 - (162,817) - 18,434 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 126,169 - 637,711 - 24,325 Increase (decrease) in net assets: Operations: Net investment income (loss) - 3,164 7 (7,743) - (504) Net realized gain (loss) on investments and capital gains distributions - 5,522 2 (159,946) - (1,565) Net unrealized appreciation (depreciation) of investments - (16,719) (2) 3,501 (3) (6,229) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (8,033) 7 (164,188) (3) (8,298) Changes from principal transactions: Purchase payments - 44,924 243 51,406 254 6,311 Contract distributions and terminations - (8,734) - (28,260) - (834) Transfer payments from (to) other Divisions (including the fixed accounts), net - 33,281 26 (75,634) 75 290 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 69,471 269 (52,488) 329 5,767 ------------------------------------------------------------------------------- Total increase (decrease) - 61,438 276 (216,676) 326 (2,531) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $- $187,607 $276 $421,035 $326 $21,794 =============================================================================== SEE ACCOMPANYING NOTES.
69 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST TOTAL GCG TRUST SITUATIONS STRATEGIC EQUITY TOTAL RETURN VALUE ADVISOR EQUITY ADVISOR RETURN ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $359,734 $- $608,868 $- $180,722 Increase (decrease) in net assets: Operations: Net investment income (loss) - (5,301) - 21,062 - (1,768) Net realized gain (loss) on investments and capital gains distributions - (127,454) - 17,228 - 265 Net unrealized appreciation (depreciation) of investments - 52,004 - (46,531) - (14,146) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (80,751) - (8,241) - (15,649) Changes from principal transactions: Purchase payments - 38,833 - 174,830 - 32,137 Contract distributions and terminations - (13,819) - (38,220) - (9,292) Transfer payments from (to) other Divisions (including the fixed accounts), net - (44,615) - 56,153 - 11,120 Additions to assets retained in the Account by Golden American Life Insurance Company - - - 4 - 1 ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (19,601) - 192,767 - 33,966 ------------------------------------------------------------------------------- Total increase (decrease) - (100,352) - 184,526 - 18,317 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 259,382 - 793,394 - 199,039 Increase (decrease) in net assets: Operations: Net investment income (loss) - (3,672) - 4,052 17 (2,233) Net realized gain (loss) on investments and capital gains distributions - (113,239) - 704 1 (11,165) Net unrealized appreciation (depreciation) of investments (1) 38,088 (1) (67,592) (29) (27,107) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (1) (78,823) (1) (62,836) (11) (40,505) Changes from principal transactions: Purchase payments 36 15,000 61 155,432 976 24,266 Contract distributions and terminations - (9,725) - (47,311) - (9,725) Transfer payments from (to) other Divisions (including the fixed accounts), net 21 (45,983) 18 14,587 (10) 164 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 57 (40,707) 79 122,708 966 14,705 ------------------------------------------------------------------------------- Total increase (decrease) 56 (119,530) 78 59,872 955 (25,800) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $56 $139,852 $78 $853,266 $955 $173,239 =============================================================================== SEE ACCOMPANYING NOTES.
70 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST VAN KAMPEN AIM V.I. GCG TRUST VAN KAMPEN GROWTH & DENT AIM V.I. VALUE EQUITY GROWTH AND INCOME DEMOGRAPHIC AIM V.I. CAPITAL ADVISOR INCOME ADVISOR TRENDS GROWTH APPRECIATION ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $860,338 $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (11,298) - (3) - - Net realized gain (loss) on investments and capital gains distributions - 30,166 - 3 - - Net unrealized appreciation (depreciation) of investments - (137,786) - (12) 18 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (118,918) - (12) 18 - Changes from principal transactions: Purchase payments - 70,829 - 404 137 - Contract distributions and terminations - (39,067) - (5) (1) - Transfer payments from (to) other Divisions (including the fixed accounts), net - (41,139) - 3,163 289 - Additions to assets retained in the Account by Golden American Life Insurance Company - 6 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (9,371) - 3,562 425 - ------------------------------------------------------------------------------- Total increase (decrease) - (128,289) - 3,550 443 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 732,049 - 3,550 443 - Increase (decrease) in net assets: Operations: Net investment income (loss) 1 (6,430) 5 (159) (11) - Net realized gain (loss) on investments and capital gains distributions - (9,833) 1 (1,222) (108) - Net unrealized appreciation (depreciation) of investments (3) (100,836) (12) (2,117) (102) (7) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2) (117,099) (6) (3,498) (221) (7) Changes from principal transactions: Purchase payments 62 44,218 960 9,229 663 24 Contract distributions and terminations - (36,216) - (233) (18) - Transfer payments from (to) other Divisions (including the fixed accounts), net 47 (68,345) 36 2,287 (19) 10 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from 109 (60,342) 996 11,283 626 34 principal transactions ------------------------------------------------------------------------------- Total increase (decrease) 107 (177,441) 990 7,785 405 27 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $107 $554,608 $990 $11,335 $848 $27 =============================================================================== SEE ACCOMPANYING NOTES.
71 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
AIM V.I. ALLIANCE ALLIANCE ALLIANCE FIDELITY(R) AIM V.I. PREMIER BERNSTEIN GROWTH AND PREMIER VIP CORE EQUITY EQUITY VALUE INCOME GROWTH GROWTH ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - (2) (4) (3) (2) Net realized gain (loss) on investments and capital gains distributions - - (5) (3) (6) (4) Net unrealized appreciation (depreciation) of investments - - 18 41 61 36 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - 11 34 52 30 Changes from principal transactions: Purchase payments - - 463 1,467 921 578 Contract distributions and terminations - - (1) (3) (1) (12) Transfer payments from (to) other Divisions (including the fixed accounts), net - - 122 155 119 97 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - 584 1,619 1,039 663 ------------------------------------------------------------------------------- Total increase (decrease) - - 595 1,653 1,091 693 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - 595 1,653 1,091 693 Increase (decrease) in net assets: Operations: Net investment income (loss) - - (24) 86 (26) (130) Net realized gain (loss) on investments and capital gains distributions - - (19) (72) (413) (725) Net unrealized appreciation (depreciation) of investments (3) (7) (241) (1,016) (166) (1,237) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (3) (7) (284) (1,002) (605) (2,092) Changes from principal transactions: Purchase payments 41 69 1,019 3,457 942 13,555 Contract distributions and terminations - - (44) (100) (74) (197) Transfer payments from (to) other Divisions (including the fixed accounts), net 3 18 1,423 722 740 11,253 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 44 87 2,398 4,079 1,608 24,611 ------------------------------------------------------------------------------- Total increase (decrease) 41 80 2,114 3,077 1,003 22,519 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $41 $80 $2,709 $4,730 $2,094 $23,212 =============================================================================== SEE ACCOMPANYING NOTES.
72 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
FRANKLIN FIDELITY(R) FIDELITY(R) FIDELITY(R) SMALL CAP GALAXY VIP VIP VIP VIP VALUE GREENWICH ASSET EQUITY-INCOME CONTRAFUND(R) OVERSEAS SECURITIES APPRECIATION ALLOCATION ------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $831 $1,387 Increase (decrease) in net assets: Operations: Net investment income (loss) (5) (3) - - (7) 5 Net realized gain (loss) on investments and capital gains distributions (4) - - - 1 (14) Net unrealized appreciation (depreciation) of investments 63 51 - - (46) (136) ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 54 48 - - (52) (145) Changes from principal transactions: Purchase payments 1,658 1,001 - - 5 105 Contract distributions and terminations (10) (2) - - (44) (76) Transfer payments from (to) other Divisions (including the fixed accounts), net 247 136 - - (17) (11) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions 1,895 1,135 - - (56) 18 ------------------------------------------------------------------------------ Total increase (decrease) 1,949 1,183 - - (108) (127) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2001 1,949 1,183 - - 723 1,260 Increase (decrease) in net assets: Operations: Net investment income (loss) (53) (35) - - - 4 Net realized gain (loss) on investments and capital gains distributions (1,606) (35) - - (11) (192) Net unrealized appreciation (depreciation) of investments 62 (331) - (3) (130) (40) ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (1,597) (401) - (3) (141) (228) Changes from principal transactions: Purchase payments 12,283 3,038 9 20 15 1 Contract distributions and terminations (287) (57) - - (5) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 11,503 675 - - (3) (377) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions 23,499 3,656 9 20 7 (401) ------------------------------------------------------------------------------ Total increase (decrease) 21,902 3,255 9 17 (134) (629) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2002 $23,851 $4,438 $9 $17 $589 $631 ============================================================================== SEE ACCOMPANYING NOTES.
73 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GALAXY VIP GALAXY VIP GALAXY VIP HIGH SMALL ING GET ING GET GALAXY VIP GROWTH AND QUALITY COMPANY FUND - FUND - EQUITY INCOME BOND GROWTH SERIES N SERIES P ------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001 $1,071 $ 284 $78 $72 $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (20) (4) 5 (1) 28 (79) Net realized gain (loss) on investments and capital gains distributions (45) (9) 1 (1) 72 - Net unrealized appreciation (depreciation) of investments (162) (14) 1 1 661 293 ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (227) (27) 7 (1) 761 214 Changes from principal transactions: Purchase payments 87 48 33 9 1,687 6,196 Contract distributions and terminations (87) (11) (4) - (135) (202) Transfer payments from (to) other Divisions (including the fixed accounts), net (37) (93) 38 4 28,555 146,837 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions (37) (56) 67 13 30,107 152,831 ------------------------------------------------------------------------------ Total increase (decrease) (264) (83) 74 12 30,868 153,045 ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2001 807 201 152 84 30,868 153,045 Increase (decrease) in net assets: Operations: Net investment income (loss) (11) (2) 4 (1) (225) (1,613) Net realized gain (loss) on investments and capital gains distributions (84) (5) 2 (7) 1 (70) Net unrealized appreciation (depreciation) of investments (126) (42) 3 (23) (538) 1,644 ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (221) (49) 9 (31) (762) (39) Changes from principal transactions: Purchase payments 15 4 - 12 (8) (437) Contract distributions and terminations (33) (14) (4) (5) (792) (3,496) Transfer payments from (to) other Divisions (including the fixed accounts), net (81) (20) (27) (3) (645) (5,227) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions (99) (30) (31) 4 (1,445) (9,160) ------------------------------------------------------------------------------ Total increase (decrease) (320) (79) (22) (27) (2,207) (9,199) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2002 $487 $122 $130 $57 $28,661 $143,846 ============================================================================== SEE ACCOMPANYING NOTES.
74 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING GET ING GET ING GET ING GET ING GET FUND - FUND - FUND - FUND - FUND - ING ALGER SERIES Q SERIES R SERIES S SERIES T SERIES U GROWTH ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - - - Net realized gain (loss) on investments and capital gains distributions - - - - - - Net unrealized appreciation (depreciation) of investments - - - - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - - - Changes from principal transactions: Purchase payments - - - - - - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,904 - - - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,904 - - - - - ----------------------------------------------------------------------------- Total increase (decrease) 1,904 - - - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,904 - - - - - Increase (decrease) in net assets: Operations: Net investment income (loss) 335 320 (132) (298) - - Net realized gain (loss) on investments and capital gains distributions (3) 48 (15) 8 - - Net unrealized appreciation (depreciation) of investments 217 1,356 1,013 2,300 - (4) ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 549 1,724 866 2,010 - (4) Changes from principal transactions: Purchase payments 2,717 2,413 3,067 6,518 466 43 Contract distributions and terminations (2,304) (2,081) (1,591) (152) - - Transfer payments from (to) other Divisions (including the fixed accounts), net 166,163 168,470 216,928 229,572 582 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 166,576 168,802 218,404 235,938 1,048 43 ----------------------------------------------------------------------------- Total increase (decrease) 167,125 170,526 219,270 237,948 1,048 39 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $169,029 $170,526 $219,270 $237,948 $1,048 $39 ============================================================================= SEE ACCOMPANYING NOTES.
75 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING ING MFS(R) ING MFS(R) AMERICAN CAPITAL CAPITAL CENTURY ING J.P. OPPORTUNITIES OPPORTUNITIES ING MFS(R) ING OPCAP SMALL CAP MORGAN MID (INITIAL (SERVICE GLOBAL BALANCED VALUE CAP VALUE CLASS) CLASS) GROWTH VALUE ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - (2) - - - Net realized gain (loss) on investments and capital gains distributions - - (2) - - - Net unrealized appreciation (depreciation) of investments - - 48 - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - 44 - - - Changes from principal transactions: Purchase payments - - 625 - - - Contract distributions and terminations - - (3) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - 32 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - 654 - - - ----------------------------------------------------------------------------- Total increase (decrease) - - 698 - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - 698 - - - Increase (decrease) in net assets: Operations: Net investment income (loss) - - (17) - - - Net realized gain (loss) on investments and capital gains distributions - (4) (59) - - - Net unrealized appreciation (depreciation) of investments - 7 (329) (13) - (5) ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - 3 (405) (13) - (5) Changes from principal transactions: Purchase payments 2 140 717 85 66 131 Contract distributions and terminations - - (25) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 158 295 - 9 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2 298 987 85 75 131 ----------------------------------------------------------------------------- Total increase (decrease) 2 301 582 72 75 126 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $2 $301 $1,280 $72 $75 $126 ============================================================================= SEE ACCOMPANYING NOTES.
76 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING ING SALOMON ING T. ROWE ING UBS ING PIMCO SALOMON BROS. ING SCUDDER PRICE TACTICAL TOTAL BROS. INVESTORS INTERNATIONAL GROWTH ASSET RETURN CAPITAL VALUE GROWTH EQUITY ALLOCATION ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - - - Net realized gain (loss) on investments and capital gains distributions - - - - - - Net unrealized appreciation (depreciation) of investments - - - - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - - - Changes from principal transactions: Purchase payments - - - - - - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - - - - - ----------------------------------------------------------------------------- Total increase (decrease) - - - - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - - - Increase (decrease) in net assets: Operations: Net investment income (loss) 13 - - - - - Net realized gain (loss) on investments and capital gains distributions 1 - - - - - Net unrealized appreciation (depreciation) of investments (5) - - - (19) - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 9 - - - (19) - Changes from principal transactions: Purchase payments 585 9 4 7 163 - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net (1) - - - - 2 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 584 9 4 7 163 2 ----------------------------------------------------------------------------- Total increase (decrease) 593 9 4 7 144 2 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $593 $9 $4 $7 $144 $2 ============================================================================= SEE ACCOMPANYING NOTES.
77 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VAN ING VP ING VP ING VP KAMPEN WORLDWIDE ING VP ING VP INDEX PLUS INDEX PLUS COMSTOCK GROWTH BOND GROWTH LARGECAP MIDCAP ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $ 5,554 $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (237) - - 2 (2) Net realized gain (loss) on investments and capital gains distributions - (1,558) - - (4) (5) Net unrealized appreciation (depreciation) of investments - (466) - - 21 35 ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (2,261) - - 19 28 Changes from principal transactions: Purchase payments - 12,903 - - 834 684 Contract distributions and terminations - (485) - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 4,303 - - (41) 108 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 16,721 - - 793 792 ---------------------------------------------------------------------------- Total increase (decrease) - 14,460 - - 812 820 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 20,014 - - 812 820 Increase (decrease) in net assets: Operations: Net investment income (loss) 2 (536) 1,106 - (31) (48) Net realized gain (loss) on investments and capital gains distributions - (2,830) 134 - (505) (505) Net unrealized appreciation (depreciation) of investments 7 (4,792) (195) (5) (104) (180) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 9 (8,158) 1,045 (5) (640) (733) Changes from principal transactions: Purchase payments 1,591 15,820 11,426 51 3,070 4,161 Contract distributions and terminations (13) (673) (720) - (85) (74) Transfer payments from (to) other Divisions (including the fixed accounts), net 150 355 37,839 - 1,432 1,735 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,728 15,502 48,545 51 4,417 5,822 ---------------------------------------------------------------------------- Total increase (decrease) 1,737 7,344 49,590 46 3,777 5,089 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $1,737 $27,358 $49,590 $46 $4,589 $5,909 ============================================================================ SEE ACCOMPANYING NOTES.
78 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS SMALL VALUE ING VP GROWTH INTERNATIONAL SMALLCAP COMPANY OPPORTUNITY CONVERTIBLE OPPORTUNITIES VALUE ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (2) - (1) (4) (27) - Net realized gain (loss) on investments and capital gains distributions (2) - (1) 5 (189) - Net unrealized appreciation (depreciation) of investments 55 - - 2 3 - ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 51 - (2) 3 (213) - Changes from principal transactions: Purchase payments 489 - 289 146 3,287 - Contract distributions and terminations - - - - (61) - Transfer payments from (to) other Divisions (including the fixed accounts), net 140 - 11 45 2,206 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 629 - 300 191 5,432 - ---------------------------------------------------------------------------- Total increase (decrease) 680 - 298 194 5,219 - ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 680 - 298 194 5,219 - Increase (decrease) in net assets: Operations: Net investment income (loss) (32) - (12) 12 (170) - Net realized gain (loss) on investments and capital gains distributions (394) (5) (45) (15) (662) - Net unrealized appreciation (depreciation) of investments (90) (53) (250) (53) (2,425) (10) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (516) (58) (307) (56) (3,257) (10) Changes from principal transactions: Purchase payments 3,269 237 981 673 6,716 52 Contract distributions and terminations (43) - (24) (11) (246) - Transfer payments from (to) other Divisions (including the fixed accounts), net 615 (23) 138 234 1,486 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 3,841 214 1,095 896 7,956 52 ---------------------------------------------------------------------------- Total increase (decrease) 3,325 156 788 840 4,699 42 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $4,005 $156 $1,086 $1,034 $9,918 $42 ============================================================================ SEE ACCOMPANYING NOTES.
79 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VP LARGE ING VP ING VP ING VP INVESCO VIF COMPANY LARGECAP ING VP MIDCAP SMALLCAP - FINANCIAL VALUE GROWTH MAGNACAP OPPORTUNITIES OPPORTUNITIES SERVICES ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (2) (6) - (80) 5 Net realized gain (loss) on investments and capital gains distributions 2 - (8) - (918) 25 Net unrealized appreciation (depreciation) of investments 4 3 20 - 297 33 ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 5 1 6 - (701) 63 Changes from principal transactions: Purchase payments 343 488 3,746 - 8,651 822 Contract distributions and terminations (1) - (117) - (133) (4) Transfer payments from (to) other Divisions (including the fixed accounts), net (191) 44 1,767 - 6,620 1,523 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 151 532 5,396 - 15,138 2,341 ---------------------------------------------------------------------------- Total increase (decrease) 156 533 5,402 - 14,437 2,404 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 156 533 5,402 - 14,437 2,404 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (9) (96) - (493) (96) Net realized gain (loss) on investments and capital gains distributions (40) (292) (437) - (1,185) (1,999) Net unrealized appreciation (depreciation) of investments (163) (52) (2,222) (4) (12,282) (590) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (204) (353) (2,755) (4) (13,960) (2,685) Changes from principal transactions: Purchase payments 575 719 7,453 16 24,037 11,708 Contract distributions and terminations (15) (40) (335) - (584) (419) Transfer payments from (to) other Divisions (including the fixed accounts), net 446 147 2,573 - 6,188 11,933 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,006 826 9,691 16 29,641 23,222 ---------------------------------------------------------------------------- Total increase (decrease) 802 473 6,936 12 15,681 20,537 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $958 $1,006 $12,338 $12 $30,118 $22,941 ============================================================================ SEE ACCOMPANYING NOTES.
80 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
JANUS ASPEN JANUS INVESCO VIF INVESCO JANUS ASPEN SERIES ASPEN - HEALTH VIF - INVESCO VIF SERIES FLEXIBLE SERIES SCIENCES LEISURE - UTILITIES BALANCED INCOME GROWTH ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) 22 - 3 - - - Net realized gain (loss) on investments and capital gains distributions 16 - 4 - - - Net unrealized appreciation (depreciation) of investments (81) - (6) - - - ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (43) - 1 - - - Changes from principal transactions: Purchase payments 1,234 - 325 - - - Contract distributions and terminations (55) - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 9,654 - 638 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 10,833 - 963 - - - ---------------------------------------------------------------------------- Total increase (decrease) 10,790 - 964 - - - ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 10,790 - 964 - - - Increase (decrease) in net assets: Operations: Net investment income (loss) (434) (40) (28) 6 5 (1) Net realized gain (loss) on investments and capital gains distributions (4,162) (157) (205) (3) - - Net unrealized appreciation (depreciation) of investments (1,617) 16 (198) (29) 10 (32) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (6,213) (181) (431) (26) 15 (33) Changes from principal transactions: Purchase payments 14,819 4,483 2,753 548 270 225 Contract distributions and terminations (1,044) (74) (128) (2) (1) - Transfer payments from (to) other Divisions (including the fixed accounts), net 12,206 1,869 4,625 (24) (1) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 25,981 6,278 7,250 522 268 225 ---------------------------------------------------------------------------- Total increase (decrease) 19,768 6,097 6,819 496 283 192 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $30,558 $6,097 $7,783 $496 $283 $192 ============================================================================ SEE ACCOMPANYING NOTES.
81 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
JANUS ASPEN PIMCO SERIES OPPENHEIMER OPPENHEIMER STOCKSPLUS PIONEER WORLDWIDE GLOBAL STRATEGIC PIMCO HIGH GROWTH AND EQUITY-INCOME GROWTH SECURITIES BOND YIELD INCOME VCT --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $162,857 $258,484 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (2) - - 12,879 5,699 - Net realized gain (loss) on investments and capital gains distributions (4) - - (12,967) (21,014) - Net unrealized appreciation (depreciation) of investments 64 - - 448 (20,466) - --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 58 - - 360 (35,781) - Changes from principal transactions: Purchase payments 1,166 - - 56,951 34,841 - Contract distributions and terminations (7) - - (12,056) (11,973) - Transfer payments from (to) other Divisions (including the fixed accounts), net 81 - - 28,231 (4,506) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,240 - - 73,126 18,362 - --------------------------------------------------------------------------- Total increase (decrease) 1,298 - - 73,486 (17,419) - --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,298 - - 236,343 241,065 - Increase (decrease) in net assets: Operations: Net investment income (loss) (40) (1) - 16,659 1,636 2 Net realized gain (loss) on investments and capital gains distributions (682) (6) (1) (18,706) (63,970) - Net unrealized appreciation (depreciation) of investments (169) (38) 1 (3,581) 10,124 (21) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (891) (45) - (5,628) (52,210) (19) Changes from principal transactions: Purchase payments 3,277 273 51 55,612 25,548 198 Contract distributions and terminations (141) (3) - (15,056) (10,918) - Transfer payments from (to) other Divisions (including the fixed accounts), net (9) (20) (35) 33,966 (21,848) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 3,127 250 16 74,522 (7,218) 198 --------------------------------------------------------------------------- Total increase (decrease) 2,236 205 16 68,894 (59,428) 179 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $3,534 $205 $16 $305,237 $181,637 $179 =========================================================================== SEE ACCOMPANYING NOTES.
82 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
PIONEER PIONEER PIONEER MID-CAP SMALL PROFUND VP PROFUND VP PROFUND VP FUND VCT VALUE VCT COMPANY VCT BULL EUROPE 30 SMALL-CAP --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (4) (3) (82) (88) (94) Net realized gain (loss) on investments and capital gains distributions 3 - (7) (640) (4,198) (1,538) Net unrealized appreciation (depreciation) of investments 20 97 49 214 83 141 --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 23 93 39 (508) (4,203) (1,491) Changes from principal transactions: Purchase payments 1,074 620 857 3,580 1,157 2,754 Contract distributions and terminations (6) (6) - (153) (293) (281) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,184 4,432 42 17,664 9,651 18,986 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2,252 5,046 899 21,091 10,515 21,459 --------------------------------------------------------------------------- Total increase (decrease) 2,275 5,139 938 20,583 6,312 19,968 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 2,275 5,139 938 20,583 6,312 19,968 Increase (decrease) in net assets: Operations: Net investment income (loss) (98) (478) (39) (488) (191) (628) Net realized gain (loss) on investments and capital gains distributions (1,493) 76 (35) (7,045) (1,793) (6,274) Net unrealized appreciation (depreciation) of investments (1,359) (6,968) (577) (1,022) (425) (1,582) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2,950) (7,370) (651) (8,555) (2,409) (8,484) Changes from principal transactions: Purchase payments 10,991 22,661 2,180 5,734 2,797 11,484 Contract distributions and terminations (339) (1,418) (56) (1,352) (941) (4,103) Transfer payments from (to) other Divisions (including the fixed accounts), net 10,087 34,050 1,006 14,855 9,868 19,747 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 20,739 55,293 3,130 19,237 11,724 27,128 --------------------------------------------------------------------------- Total increase (decrease) 17,789 47,923 2,479 10,682 9,315 18,644 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $20,064 $53,062 $3,417 $31,265 $15,627 $38,612 =========================================================================== SEE ACCOMPANYING NOTES.
83 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
PRUDENTIAL PUTNAM VT SMITH SP JENNISON PUTNAM VT INTERNATIONAL BARNEY PRUDENTIAL INTERNATIONAL GROWTH AND GROWTH AND PUTNAM VT HIGH JENNISON GROWTH INCOME INCOME VOYAGER II INCOME --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $ 7,732 $ 2,720 $- $- $- $ 446 Increase (decrease) in net assets: Operations: Net investment income (loss) (407) (126) (1) (2) (1) 44 Net realized gain (loss) on investments and capital gains distributions (5,401) (3,123) (1) (4) - (32) Net unrealized appreciation (depreciation) of investments 2,985 418 13 16 46 (32) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2,823) (2,831) 11 10 45 (20) Changes from principal transactions: Purchase payments 16,595 7,856 450 488 456 - Contract distributions and terminations (945) (448) - - (1) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 25,432 4,013 (6) 106 77 (31) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 41,082 11,421 444 594 532 (56) --------------------------------------------------------------------------- Total increase (decrease) 38,259 8,590 455 604 577 (76) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 45,991 11,310 455 604 577 370 Increase (decrease) in net assets: Operations: Net investment income (loss) (821) (297) - (29) (20) 77 Net realized gain (loss) on investments and capital gains distributions (12,816) (2,827) (30) (12) (8) (33) Net unrealized appreciation (depreciation) of investments (2,790) (897) (254) (412) (431) (62) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (16,427) (4,021) (284) (453) (459) (18) Changes from principal transactions: Purchase payments 16,384 7,906 1,270 2,192 1,233 - Contract distributions and terminations (2,130) (550) (94) (25) (19) (17) Transfer payments from (to) other Divisions (including the fixed accounts), net (6,070) 696 315 663 313 (16) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 8,184 8,052 1,491 2,830 1,527 (33) --------------------------------------------------------------------------- Total increase (decrease) (8,243) 4,031 1,207 2,377 1,068 (51) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $37,748 $15,341 $1,662 $2,981 $1,645 $319 =========================================================================== SEE ACCOMPANYING NOTES.
84 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
SMITH BARNEY SMITH SMITH INTERNATIONAL BARNEY BARNEY UBS ALL CAP LARGE CAP MONEY TACTICAL GROWTH VALUE MARKET ALLOCATION -------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $455 $ 692 $156 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (5) (1) (12) (2) Net realized gain (loss) on investments and capital gains distributions 1 13 - (4) Net unrealized appreciation (depreciation) of investments (142) (79) - 46 -------------------------------------------------- Net increase (decrease) in net assets from operations (146) (67) (12) 40 Changes from principal transactions: Purchase payments - - - 718 Contract distributions and terminations (4) (15) (241) - Transfer payments from (to) other Divisions (including the fixed accounts), net (5) (47) 318 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (9) (62) 77 747 -------------------------------------------------- Total increase (decrease) (155) (129) 65 787 -------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 300 563 221 787 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) 11 (8) (12) Net realized gain (loss) on investments and capital gains distributions (9) (24) - (15) Net unrealized appreciation (depreciation) of investments (67) (133) - (299) -------------------------------------------------- Net increase (decrease) in net assets from operations (77) (146) (8) (326) Changes from principal transactions: Purchase payments - - - 768 Contract distributions and terminations (3) (9) (174) (87) Transfer payments from (to) other Divisions (including the fixed accounts), net (19) (37) 104 406 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (22) (46) (70) 1,087 -------------------------------------------------- Total increase (decrease) (99) (192) (78) 761 -------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $201 $371 $143 $1,548 ================================================== SEE ACCOMPANYING NOTES.
85 This page is intentionally left blank. 86 This page is intentionally left blank. 87 Golden American Life Insurance Company Separate Account B Notes To Financial Statements December 31, 2002 1. ORGANIZATION Golden American Life Insurance Company Separate Account B (the "Account") was established by Golden American Life Insurance Company ("Golden American" or the "Company") to support the operations of variable annuity contracts ("Contracts"). The Company is an indirect wholly owned subsidiary of ING Groep, N.V., a global financial services holding company based in The Netherlands. The Account is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. Golden American provides for variable accumulation and benefits under the Contracts by crediting annuity considerations to one or more divisions within the Account or the Golden American guaranteed interest division, the Golden American fixed interest division, and the fixed separate account, which are not part of the Account, as directed by the Contractowners. The portion of the Account's assets applicable to Contracts will not be charged with liabilities arising out of any other business Golden American may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of Golden American. The assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of Golden American. During 2002, the Account had GoldenSelect Contracts, Granite PrimElite Contracts, SmartDesign Contracts, and ING Rollover Choice Contracts. GoldenSelect Contracts sold by Golden American during 2002 included DVA Plus, Access, Premium Plus, ESII, Value, Access One, Landmark, and Generations Contracts. SmartDesign Contracts included Variable Annuity ("VA") and Advantage Contracts. The Account discontinued offering DVA 80 Contracts in May 1991 and discontinued registering DVA and DVA Series 100 Contracts for sale to the public as of May 1, 2000. 88 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) The Account also includes The Fund For Life Division, which is not included in the accompanying financial statements, and which ceased to accept new Contracts effective December 31, 1994. At December 31, 2002, the Account had 151 investment divisions (the "Divisions") 44 of which invest in independently managed mutual funds and 107 of which invest in mutual funds managed by affiliates, either Direct Services, Inc., ING Investments, LLC, or ING Life Insurance and Annuity Company. The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio" or "Fund") of various investment trusts (the "Trusts"). Investment Divisions at December 31, 2002 and related Trusts are as follows: The GCG Trust: The GCG Trust (continued): All Cap Series Global Franchise Series (S Class) ** All Cap Advisor Series ** Global Franchise Advisor Series ** Asset Allocation Growth Series Growth Series Capital Growth Series Growth Advisor Series ** Capital Growth Advisor Series ** Hard Assets Series Capital Guardian Small Cap Series Hard Assets Advisor Series ** Capital Guardian Small Cap Advisor Series ** International Enhanced EAFE Series (S Class) ** Core Bond Series International Enhanced EAFE Advisor Series ** Core Bond Advisor Series ** International Equity Series Developing World Series International Equity Advisor Series ** Developing World Advisor Series ** Internet Tollkeeper Series Diversified Mid-Cap Series Internet Tollkeeper Advisor Series ** Diversified Mid-Cap Advisor Series ** Investors Series Equity Growth Series (S Class) ** Investors Advisor Series ** Equity Growth Series Advisor Series ** J.P. Morgan Fleming Small Cap Equity Series (S Class) ** Equity Income Series J.P. Morgan Fleming Small Cap Equity Advisor Series ** Equity Income Advisor Series ** Janus Growth and Income Series Equity Opportunity Series Janus Growth and Income Advisor Series ** Equity Opportunity Series Advisor Series ** Large Cap Value Series Focus Value Series (S Class) ** Large Cap Value Advisor Series ** Focus Value Series Advisor Series ** Limited Maturity Bond Series Fully Managed Series Liquid Asset Series Fully Managed Advisor Series ** Liquid Asset Advisor Series ** Fundamental Growth Focus Series (S Class) ** Managed Global Series Fundamental Growth Advisor Series ** Managed Global Advisor Series **
89 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) The GCG Trust (continued): ING GET Fund: Mid-Cap Growth Series ING GET Fund - Series N * Mid-Cap Growth Advisor Series ** ING GET Fund - Series P * Real Estate Series ING GET Fund - Series Q ** Real Estate Advisor Series ** ING GET Fund - Series R ** Research Series ING GET Fund - Series S ** Research Advisor Series ** ING GET Fund - Series T ** Special Situations Series ING GET Fund - Series U ** Special Situations Advisor Series ** ING Partners, Inc.: Strategic Equity Series ING Alger Growth Portfolio (Service Class) ** Strategic Equity Advisor Series ** ING American Century Small Cap Value Portfolio (Service Class) ** Total Return Series ING J.P. Morgan Mid Cap Value Portfolio (Service Class) ** Total Return Advisor Series ** ING MFS(R)Capital Opportunities Portfolio (Initial Class) * Value Equity Series ING MFS(R)Capital Opportunities Portfolio (Service Class) ** Value Equity Advisor Series ** ING MFS(R)Global Growth Portfolio (Service Class) ** Van Kampen Growth and Income Series ING OpCap Balanced Value Portfolio (Service Class) ** Van Kampen Growth & Income Advisor Series ** ING PIMCO Total Return Portfolio (Service Class) ** AIM Variable Insurance Funds: ING Salomon Bros. Capital Portfolio (Service Class) ** AIM V.I. Dent Demographic Trends Fund (Class II Shares) * ING Salomon Bros. Investors Value Portfolio (Service Class) ** AIM V.I. Growth Fund (Series II) * ING Scudder International Growth Portfolio (Service Class) ** AIM V.I. Capital Appreciation Fund (Series II) ** ING T. Rowe Price Growth Equity Portfolio (Service Class) ** AIM V.I. Core Equity Fund (Series II) ** ING UBS Tactical Asset Allocation Portfolio (Service Class) ** AIM V.I. Premier Equity Fund (Series II) ** ING Van Kampen Comstock Portfolio (Service Class) ** Alliance Variable Products Series Fund, Inc.: ING Variable Insurance Trust: Alliance Bernstein Value Portfolio (Class B) * ING VP Worldwide Growth Portfolio (Service Shares) Alliance Growth and Income Portfolio (Class B) * ING VP Bond Portfolio: Alliance Premier Growth Portfolio (Class B) * ING VP Bond Portfolio (Class S Shares) ** Fidelity(R)Variable Insurance Products Fund: ING Variable Portfolios, Inc.: Fidelity(R) VIP Growth Portfolio (Service Class 2) * ING VP Growth Portfolio (S Class) ** Fidelity(R) VIP Equity-Income Portfolio (Service Class 2) * ING VP Index Plus LargeCap Portfolio (Class S) * Fidelity(R) VIP Contrafund(R)Portfolio (Service Class 2) * ING VP Index Plus MidCap Portfolio (Class S) * Fidelity(R) VIP Overseas Portfolio (Service Class 2) ** ING VP Index Plus SmallCap Portfolio (Class S) * Franklin Templeton Variable Insurance Products Trust: ING VP Small Company Portfolio (Class S) ** Franklin Small Cap Value Securities Fund (Class 2) ** ING VP Value Opportunity Portfolio (Class S) * Greenwich Street Series Fund: ING Variable Products Trust: Greenwich Appreciation Portfolio ING VP Convertible Portfolio (Class S) * The Galaxy VIP Fund: ING VP Growth Opportunities Portfolio (Service Shares) * Galaxy VIP Asset Allocation Fund ING VP International Value Portfolio (Class S) ** Galaxy VIP Equity Fund ING VP Large Company Value Portfolio (Class S) * Galaxy VIP Growth and Income Fund ING VP LargeCap Growth Portfolio (Class S) * Galaxy VIP High Quality Bond Fund ING VP MagnaCap Portfolio (Service Shares) * Galaxy VIP Small Company Growth Fund ING VP MidCap Opportunities Portfolio (Class S) **
90 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) ING Variable Products Trust (continued): ProFunds VP: ING VP SmallCap Opportunities Portfolio (Service Shares) * ProFund VP Bull * INVESCO Variable Investment Funds, Inc.: ProFund VP Europe 30 * INVESCO VIF - Financial Services Fund * ProFund VP Small-Cap * INVESCO VIF - Health Sciences Fund * Prudential Series Fund, Inc.: INVESCO VIF - Leisure Fund ** Prudential Jennison Portfolio (Class II Shares) INVESCO VIF - Utilities Fund* Prudential SP Jennison International Growth Janus Aspen Series: Portfolio (Class II Shares) Janus Aspen Series Balanced Portfolio (Service Class) ** Putnam Variable Trust: Janus Aspen Series Flexible Income Portfolio (Service Class) ** Putnam VT Growth and Income (Class IB) * Janus Aspen Series Growth Portfolio (Service Class) ** Putnam VT International Growth and Income (Class IB) * Janus Aspen Series Worldwide Growth Portfolio (Service Class) * Putnam VT Voyager Fund II (Class IB) * Oppenheimer Variable Accounts Fund: Travelers Series Fund Inc.: Oppenheimer Global Securities Fund/VA (Service Class) ** Smith Barney High Income Portfolio Oppenheimer Strategic Bond Fund/VA (Service Class) ** Smith Barney International All Cap Growth Portfolio PIMCO Variable Insurance Trust: Smith Barney Large Cap Value Portfolio PIMCO High Yield Portfolio Smith Barney Money Market Portfolio PIMCO StocksPLUS Growth and Income Portfolio UBS Series Trust: Pioneer Variable Contracts Trust: UBS Tactical Allocation Portfolio (Class I) * Pioneer Equity-Income VCT Portfolio (Class II) ** Pioneer Fund VCT Portfolio (Class II Shares) * Pioneer Mid-Cap Value VCT Portfolio (Class II Shares) * Pioneer Small Company VCT Portfolio (Class II) * * Division was new in 2001. ** Division was new in 2002.
The GCG Trust Market Manager Division was open for investment for only a brief period during 1994 and 1995. This Division is now closed and Contractowners are not permitted to direct their investments into this Division. On March 6, 2001, all remaining proceeds in the Market Manager Division were liquidated and Contractowner holdings were reallocated to the Liquid Asset Division as described in the Contract prospectus. On April 27, 2001, following approval by it shareholders, all remaining proceeds in the GCG Trust Emerging Markets Division were liquidated and Contractowner holdings were reallocated to the GCG Trust Developing World Division as described in the Contract prospectus. 91 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) On December 14, 2001, the consolidation of the Warburg Pincus International Equity Portfolio into the GCG Trust International Equity Series took place at no cost to Contractowners. Shares of GCG Trust International Equity Series were substituted for shares of Warburg Pincus International Equity Portfolio. The names of certain Divisions were changed during 2002. The following is a summary of current and former names for those Divisions: CURRENT NAME FORMER NAME - -------------------------------------------------------------------------------- ING MFS(R)Capital Opportunities PPI MFS Capital Opportunities ING VP Worldwide Growth Pilgrim Worldwide Growth ING VP Index Plus LargeCap Aetna Index Plus LargeCap ING VP Index Plus MidCap Aetna Index Plus MidCap ING VP Index Plus SmallCap Aetna Index Plus SmallCap ING VP Value Opportunity Aetna Value Opportunity ING VP Convertible Pilgrim Convertible ING VP Growth Opportunities Pilgrim Growth Opportunities ING VP Large Company Value Pilgrim Growth and Income ING VP LargeCap Growth Pilgrim LargeCap Growth ING VP MagnaCap Pilgrim MagnaCap ING VP SmallCap Opportunities Pilgrim SmallCap Opportunities 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies of the Account: USE OF ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 92 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) INVESTMENTS Investments are made in shares of a Series or Portfolio of the Trusts and are recorded at fair value, determined by the net asset value per share of the respective Series or Portfolio of the Trusts. Investment transactions in each Series or Portfolio of the Trusts are recorded on the trade date. Distributions of net investment income and capital gains from each Series or Portfolio of the Trusts are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Series or Portfolio of the Trusts are determined on the specific identification basis. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments. FEDERAL INCOME TAXES Operations of the Account form a part of, and are taxed with, the total operations of Golden American, which is taxed as a life insurance company under the Internal Revenue Code. Earnings and realized capital gains of the Account attributable to the Contractowners are excluded in the determination of the federal income tax liability of Golden American. TRANSFERS Transfers between the Account and Golden American relate to gains and losses resulting from actual mortality experience, the full responsibility for which is assumed by Golden American, Contractowner transfers between the general account and the Divisions, and other Contractowner activity including contract deposits and withdrawals. Unsettled transactions as of the reporting date appear on a net basis in the line Payable to Golden American Life Insurance Company on the Statement of Assets and Liabilities. 93 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES Prior to February 1, 2000, DVA Plus, Access, and Premium Plus Contracts each had three different death benefit options referred to as Standard, Annual Ratchet, and 7% Solution; however, in the state of Washington, the 5.5% Solution is offered instead of the 7% Solution. After February 1, 2000, DVA Plus, Access and Premium Plus each had four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. Granite PrimElite has two death benefit options referred to as Standard and Annual Ratchet. Golden American discontinued external sales of DVA 80 in May 1991. Golden American has also discontinued external sales of DVA 100, DVA Series 100, and Granite PremElite. Under the terms of all Contracts, certain charges are allocated to the Contracts to cover Golden American's expenses in connection with the issuance and administration of the Contracts. Following is a summary of these charges: MORTALITY AND EXPENSE RISK CHARGES Golden American assumes mortality and expense risks related to the operations of the Account and, in accordance with the terms of the Contracts, deducts a daily charge from the assets of the Account. Daily charges deducted at annual rates to cover these risks follows: SERIES ANNUAL RATES ----------------- DVA 80 0.80% DVA 0.90 DVA Series 100 1.25 DVA Plus (pre February 2000) - Standard 1.10 DVA Plus (post January 2000) - Standard 1.15 DVA Plus (post 2000) - Standard 1.15 DVA Plus (pre February 2000) - Annual Ratchet 1.25 DVA Plus (pre February 2000) - 5.5% Solution 1.25 DVA Plus (post January 2000) - 5.5% Solution 1.25 DVA Plus (post 2000) - 5.5% Solution 1.30 DVA Plus (post January 2000) - Annual Ratchet 1.30 DVA Plus (pre February 2000) - 7% Solution 1.40 94 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES ----------------- DVA Plus (post January 2000) - Max 5.5 1.40% DVA Plus (post 2000) - Annual Ratchet 1.40 DVA Plus (post 2000) - Max 5.5 1.45 DVA Plus (post January 2000) - 7% Solution 1.50 DVA Plus (post 2000) - 7% Solution 1.50 DVA Plus (post January 2000) - Max 7 1.60 DVA Plus (post 2000) - Max 7 1.60 Access (pre February 2000) - Standard 1.25 Access (post January 2000) - Standard 1.30 Access (post 2000) - Standard 1.30 Access (pre February 2000) - Annual Ratchet 1.40 Access (pre February 2000) - 5.5% Solution 1.40 Access (post January 2000) - Annual Ratchet 1.45 Access (post January 2000) - 5.5% Solution 1.45 Access (post 2000) - 5.5% Solution 1.45 Access (pre February 2000) - 7% Solution 1.55 Access (post January 2000) - Max 5.5 1.55 Access (post 2000) - Annual Ratchet 1.55 Access (post 2000) - Max 5.5 1.60 Access (post January 2000) - 7% Solution 1.65 Access (post 2000) - 7% Solution 1.65 Access (post April 2001) - Standard 1.65 Access (post January 2000) - Max 7 1.75 Access (post 2000) - Max 7 1.75 Access (post April 2001) - 5.5% Solution 1.80 Access (post April 2001) - Annual Ratchet 1.90 Access (post April 2001) - Max 5.5 1.95 Access (post April 2001) - 7% Solution 2.00 Access (post April 2001) - Max 7 2.10 Premium Plus (pre February 2000) - Standard 1.25 Premium Plus (post January 2000) - Standard 1.30 95 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES --------------- Premium Plus (post 2000) - Standard 1.30% Premium Plus (pre February 2000) - Annual Ratchet 1.40 Premium Plus (pre February 2000) - 5.5% Solution 1.40 Premium Plus (post January 2000) - Annual Ratchet 1.45 Premium Plus (post January 2000) - 5.5% Solution 1.45 Premium Plus (post 2000) - 5.5% Solution 1.45 Premium Plus (pre February 2000) - 7% Solution 1.55 Premium Plus (post January 2000) - Max 5.5 1.55 Premium Plus (post 2000) - Annual Ratchet 1.55 Premium Plus (post 2000) - Max 5.5 1.60 Premium Plus (post January 2000) - 7% Solution 1.65 Premium Plus (post 2000) - 7% Solution 1.65 Premium Plus (post January 2000) - Max 7 1.75 Premium Plus (post 2000) - Max 7 1.75 ES II (pre 2001) 1.25 ES II (post 2000) - Standard 1.25 ES II (post 2000) - Deferred Ratchet 1.30 ES II (post 2000) - 5.5% Solution 1.40 ES II (post 2000) - Annual Ratchet 1.50 ES II (post 2000) - Max 5.5 1.55 ES II (post 2000) - 7% Solution 1.60 ES II (post 2000) - Max 7 1.70 Value - Standard 0.75 Access One 0.35 Granite PrimElite - Standard 1.10 Granite PrimElite - Annual Ratchet 1.25 Generations - Standard 1.25 Generations - Deferred Ratchet 1.30 Generations - Annual Ratchet 1.50 Generations - 7% Solution 1.60 Generations - Max 7 1.70 Landmark - Standard 1.50 96 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES ----------------- Landmark - 5.5% Solution 1.65% Landmark - Annual Ratchet 1.75 Landmark - Max 5.5 1.80 Landmark - 7% Solution 1.85 Landmark - Max 7 1.95 VA Option I 0.80 VA Option II 1.10 VA Option III 1.25 VA Bonus Option I 1.30 VA Bonus Option II 1.60 VA Bonus Option III 1.75 Advantage Option I 2.05 Advantage Option II 2.25 Advantage Option III 2.30 Rollover Choice Option I 0.60 Rollover Choice Option II 0.80 Rollover Choice Option III 0.95 ASSET BASED ADMINISTRATIVE CHARGES A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA and DVA Series 100 Contracts. A daily charge at an annual rate of 0.15% is deducted from the assets attributable to the DVA Plus, Access, Premium Plus, ESII, Value, Access One, Granite PrimElite, Generations, Landmark, VA, Advantage, and Rollover Choice Contracts. 97 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) ADMINISTRATIVE CHARGES An administrative charge is deducted from the accumulation value of deferred annuity Contracts to cover ongoing administrative expenses. The charge is $30 per Contract year for ES II, Value, VA, Advantage, and Rollover Choice Contracts. For DVA Series 100 and Access One Contracts there is no charge. For all other Contracts the charge is $40. The charge is incurred at the beginning of the Contract processing period and deducted at the end of the Contract processing period. This charge had been waived for certain offerings of the Contracts. For certain Contracts, a minimum death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death benefit per Contract year is deducted from the accumulation value of each Contract on its anniversary date. CONTINGENT DEFERRED SALES CHARGES Under DVA 80, DVA, DVA Plus, Premium Plus, ES II, Value, Granite PrimElite, Landmark, VA, Advantage, and Rollover Choice Contracts, a contingent deferred sales charge ("Surrender Charge") is imposed as a percentage of each premium payment if the Contract is surrendered or an excess partial withdrawal is taken. The following table reflects the Surrender Charge that is assessed based upon the date a premium payment is received.
COMPLETE YEARS GRANITE ELAPSED SINCE DVA PRIMELITE PREMIUM PAYMENT 80 & PREMIUM ES II & ROLLOVER & DVA DVA PLUS PLUS GENERATIONS VALUE ADVANTAGE LANDMARK VA CHOICE - -------------------- -------- ------------ ---------- ------------- -------- ------------ ------------ ------ ---------- 0 6% 7% 8% 8% 6% 6% 6% 7% 6% 1 5 7 8 7 6 5 5 7 6 2 4 6 8 6 6 4 4 6 5 3 3 5 8 5 5 - 3 6 4 4 2 4 7 4 4 - - 5 3 5 1 3 6 3 3 - - 4 2 6 - 1 5 2 1 - - 3 1 7 - - 3 1 - - - - - 8 - - 1 - - - - - - 9+ - - - - - - - - - - -------------------- -------- ------------ ---------- ------------- -------- ------------ ------------ ------ ----------
98 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) OTHER CONTRACT CHARGES Under DVA 80, DVA, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contractowners taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA Contracts, annual distribution fees are deducted from the Contracts' accumulation values. DEFERRED SALES LOAD Under Contracts offered prior to October 1995, a sales load of up to 7.5% was assessed against each premium payment for sales-related expenses as specified in the Contracts. For DVA Series 100, the sales load is deducted in equal annual installments over the period the Contract is in force, not to exceed 10 years. For DVA 80 and DVA Contracts, although the sales load is chargeable to each premium when it is received by Golden American, the amount of such charge is initially advanced by Golden American to Contractowners and included in the accumulation value and then deducted in equal installments on each Contract anniversary date over a period of six years. Upon surrender of the Contract, the unamortized deferred sales load is deducted from the accumulation value. In addition, when partial withdrawal limits are exceeded, a portion of the unamortized deferred sales load is deducted. PREMIUM TAXES For certain Contracts, premium taxes are deducted, where applicable, from the accumulation value of each Contract. The amount and timing of the deduction depends on the Contractowner's state of residence and currently ranges up to 3.5% of premiums. 99 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) FEES WAIVED BY GOLDEN AMERICAN Certain charges and fees for various types of Contracts are currently waived by Golden American. Golden American reserves the right to discontinue these waivers at its discretion or to conform with changes in the law. NET ASSETS RETAINED IN THE ACCOUNT BY GOLDEN AMERICAN LIFE INSURANCE COMPANY A summary of the net assets retained in the Account, representing the unamortized deferred sales load and premium taxes advanced by Golden American previously noted, follows: YEAR ENDED ----------------------------- 2002 2001 --------------- ------------- (DOLLARS IN THOUSANDS) Balance at beginning of year $ 135 $ 813 Sales load advanced 9 46 Amortization of deferred sales load and premium tax (144) (724) --------------- ------------- Balance at end of year $ - $ 135 =============== ============= 4. RELATED PARTY TRANSACTIONS During the year ended December 31, 2002, management and service fees were paid indirectly to Directed Services, Inc., an affiliate of the Company, in its capacity as investment manager to the GCG Trust. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.53% to 1.85% of the average net assets of each respective Series. In addition, management and service fees were paid to ING Investments, LLC, in its capacity as investment adviser to the ING GET Fund, the ING Variable Insurance Trust, ING VP Bond Portfolio, ING Variable Portfolios, Inc., and the ING Variable Products Trust. The Trusts' advisory agreement provided for fees at annual rates ranging from 0.35% to 1.00% of the average net assets of each respective Portfolio. Management and service fees were paid to ING Life Insurance and Annuity Company, an affiliate of the Company, in its capacity as investment adviser to ING Partners, Inc. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.50% to 1.00% of the average net assets of each respective Portfolio. 100 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales of investments follows:
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust: All Cap $99,898 $62,269 $215,529 $18,161 All Cap Advisor 177 - - - Asset Allocation Growth 18,227 10,179 46,049 798 Capital Growth 271,861 306,181 150,331 150,151 Capital Growth Advisor 154 - - - Capital Guardian Small Cap 830,463 842,708 474,975 410,116 Capital Guardian Small Cap Advisor 320 - - - Core Bond 332,380 34,599 96,443 23,096 Core Bond Advisor 995 - - - Developing World 256,419 261,252 514,464 492,886 Developing World Advisor 81 - - - Diversified Mid-Cap 58,638 6,680 51,740 5,350 Diversified Mid-Cap Advisor 224 - - - Emerging Markets - - 49,902 69,646 Equity Growth 5,244 623 - - Equity Growth Advisor 480 - - - Equity Income 166,618 101,344 216,341 81,506 Equity Income Advisor 673 13 - - Equity Opportunity 147,404 177,811 142,512 114,142 Equity Opportunity Advisor 34 - - - Focus Value 6,954 731 - - Focus Value Advisor 50 - - - Fully Managed 383,713 62,233 377,005 90,177 Fully Managed Advisor 946 34 - - Fundamental Growth Focus 3,288 415 - - Fundamental Growth Advisor 113 - - - Global Franchise 19,859 4,824 - - Global Franchise Advisor 744 42 - - Growth 922,370 1,085,634 838,003 854,786 Growth Advisor 97 - - - Hard Assets 102,835 64,011 15,759 19,014 Hard Assets Advisor 95 - - - International Enhanced EAFE 18,536 13,290 - - International Enhanced EAFE Advisor 166 - - - International Equity 684,796 688,451 1,288,757 1,304,170
101 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED) Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust (continued): International Equity Advisor $ 254 $- $ - $ - Internet Tollkeeper 16,754 6,112 5,934 392 Internet Tollkeeper Advisor 57 - - - Investors 37,278 9,900 79,313 6,102 Investors Advisor 297 - - - J.P. Morgan Fleming Small Cap Equity 10,549 557 - - J.P. Morgan Fleming Small Cap Advisor 520 - - - Janus Growth and Income 77,366 13,632 85,909 2,016 Janus Growth and Income Advisor 602 - - - Large Cap Value 137,118 37,870 192,419 13,495 Large Cap Value Advisor 347 - - - Limited Maturity Bond 289,313 109,521 320,388 165,480 Liquid Asset 6,067,854 6,116,068 5,778,907 5,387,088 Liquid Asset Advisor 3,353 1,553 - - Managed Global Series 439,191 413,705 994,534 946,349 Managed Global Advisor 51 - - - Market Manager - - 3,388 8,410 Mid-Cap Growth 672,311 703,631 813,977 747,789 Mid-Cap Growth Advisor 558 - - - Real Estate 137,466 62,909 71,207 46,270 Real Estate Advisor 278 - - - Research 171,313 231,552 208,240 178,793 Research Advisor 329 - - - Special Situations 11,468 6,198 21,339 1,778 Special Situations Advisor 56 - - - Strategic Equity 403,752 448,147 199,079 223,594 Strategic Equity Advisor 79 - - - Total Return 268,590 141,319 303,584 73,267 Total Return Advisor 1,034 51 - - Value Equity 102,513 90,027 109,345 74,755 Value Equity Advisor 110 - - - Van Kampen Growth and Income 60,273 127,038 60,251 72,471 Van Kampen Growth and Income Advisor 1,031 31 - - AIM Variable Insurance Funds: AIM V.I. Dent Demographic Trends 16,368 5,241 3,649 90 AIM V.I. Growth 987 372 427 2 AIM V.I. Capital Appreciation 34 - - - AIM V.I. Core Equity 44 - - - AIM V.I. Premier Equity 87 - - -
102 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) Alliance Variable Products Series Fund, Inc.: Alliance Bernstein Value $ 2,631 $ 257 $ 648 $ 66 Alliance Growth and Income 4,785 619 1,659 44 Alliance Premier Growth 3,175 1,593 1,115 79 Fidelity(R)Variable Insurance Products Fund: Fidelity(R)VIP Growth 48,243 23,758 705 44 Fidelity(R)VIP Equity-Income 62,498 39,048 1,945 55 Fidelity(R)VIP Contrafund(R) 4,406 783 1,568 436 Fidelity(R)VIP Overseas 9 - - - Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 20 - - - Greenwich Street Series Fund: Greenwich Appreciation 81 74 54 116 The Galaxy VIP Fund: Galaxy VIP Asset Allocation 33 431 214 191 Galaxy VIP Equity 22 132 130 187 Galaxy VIP Growth and Income - 32 59 119 Galaxy VIP High Quality Bond 32 58 90 18 Galaxy VIP Small Company Growth 13 11 19 6 ING GET Fund: ING GET Fund - Series N 733 2,401 33,144 3,009 ING GET Fund - Series P 6,579 18,769 152,998 246 ING GET Fund - Series Q 182,185 15,241 1,904 - ING GET Fund - Series R 184,803 15,647 - - ING GET Fund - Series S 227,944 9,645 - - ING GET Fund - Series T 237,424 1,768 - - ING GET Fund - Series U 1,047 - - - ING Partners, Inc.: ING Alger Growth 43 - - - ING American Century Small Cap Value 2 - - - ING J.P. Morgan Mid Cap Value 357 60 - - ING MFS(R)Capital Opportunities 1,163 193 661 9 ING MFS(R)Capital Opportunities 85 - - - ING MFS(R)Global Growth 76 1 - - ING OpCap Balanced Value 131 - - - ING PIMCO Total Return 627 29 - - ING Salomon Bros. Capital 9 - - -
103 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) ING Partners, Inc. (continued): ING Salomon Bros. Investors Value $ 4 $ - $- $ - ING Scudder International Growth 8 - - - ING T. Rowe Price Growth Equity 162 - - - ING UBS Tactical Asset Allocation 2 - - - ING Van Kampen Comstock 1,785 55 - - ING Variable Insurance Trust: ING VP Worldwide Growth 24,169 9,196 24,855 8,371 ING VP Bond Portfolio: ING VP Bond 63,496 13,839 - - ING Variable Portfolios, Inc.: ING VP Growth 51 1 - - ING VP Index Plus LargeCap 7,078 2,691 896 101 ING VP Index Plus MidCap 9,240 3,466 852 62 ING VP Index Plus SmallCap 8,715 4,883 854 227 ING VP Small Company 251 37 - - ING VP Value Opportunity 1,251 169 314 15 ING Variable Products Trust: ING VP Convertible 1,096 187 195 3 ING VP Growth Opportunities 10,173 2,384 7,080 1,675 ING VP International Value 53 1 - - ING VP Large Company Value 1,376 372 442 291 ING VP LargeCap Growth 1,869 1,053 538 8 ING VP MagnaCap 13,443 3,846 5,521 131 ING VP MidCap Opportunities 16 - - - ING VP SmallCap Opportunities 31,124 1,969 20,495 5,437 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 63,673 40,543 3,684 1,338 INVESCO VIF - Health Sciences 83,757 58,204 13,606 2,751 INVESCO VIF - Leisure 7,516 1,277 - - INVESCO VIF - Utilities 8,167 944 1,085 117 Janus Aspen Series: Janus Aspen Series Balanced 565 37 - - Janus Aspen Series Flexible Income 276 3 - - Janus Aspen Series Growth 225 1 - - Janus Aspen Series Worldwide Growth 104,529 101,442 1,300 62
104 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities $ 274 $24 $ - $ - Oppenheimer Strategic Bond 53 36 - - PIMCO Variable Insurance Trust: PIMCO High Yield 217,839 126,620 187,456 101,450 PIMCO StocksPLUS Growth and Income 92,182 97,761 78,983 54,922 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 200 1 - - Pioneer Fund VCT 27,454 6,810 2,403 151 Pioneer Mid-Cap Value VCT 69,537 13,624 5,058 16 Pioneer Small Company VCT 3,491 398 978 82 ProFunds VP: ProFund VP Bull 114,057 95,299 41,559 20,550 ProFund VP Europe 30 318,634 307,100 179,473 169,046 ProFund VP Small-Cap 321,292 294,784 202,340 180,975 Prudential Series Fund, Inc.: Prudential Jennison 223,318 215,947 161,864 120,999 Prudential SP Jennison International Growth 44,081 36,323 72,009 60,714 Putnam Variable Trust: Putnam VT Growth and Income 1,662 172 456 13 Putnam VT International Growth and Income 3,063 261 625 33 Putnam VT Voyager II 1,601 94 539 8 Travelers Series Fund Inc.: Smith Barney High Income 82 38 51 62 Smith Barney International All Cap Growth 4 26 4 19 Smith Barney Large Cap Value 19 54 30 71 Smith Barney Money Market 2 80 194 129 UBS Series Trust: UBS Tactical Allocation 1,316 240 794 49
105 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS The changes in units outstanding for the years ended December 31, 2002 and 2001 are shown in the following table. The activity includes Contractowners electing to update a DVA 100 or DVA Series 100 Contract to a DVA PLUS Contract. Updates to DVA PLUS Contracts resulted in both a redemption (surrender of the old Contract) and an issue (acquisition of the new Contract). All of the units issued for the GCG Trust Market Manager Division resulted from such updates.
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- The GCG Trust: All Cap 14,295,321 10,877,332 3,417,989 20,782,291 4,029,958 16,752,333 All Cap Advisor 18,492 - 18,492 - - - Asset Allocation Growth 2,524,223 1,691,382 832,841 5,576,656 359,275 5,217,381 Capital Growth 12,673,641 14,350,360 (1,676,719) 9,170,101 7,646,399 1,523,702 Capital Growth Advisor 3,459 - 3,459 - - - Capital Guardian Small Cap 31,167,383 33,693,558 (2,526,175) 12,516,724 12,352,679 164,045 Capital Guardian Small Cap Advisor 14,125 - 14,125 - - - Core Bond 58,286,404 59,112,337 (825,933) 32,782,567 28,723,840 4,058,727 Core Bond Advisor 32,995 27 32,968 - - - Developing World 31,632,928 7,268,250 24,364,678 9,464,453 3,028,846 6,435,607 Developing World Advisor 96,894 124 96,770 - - - Diversified Mid-Cap 38,357,135 38,795,832 (438,697) 77,143,940 74,214,198 2,929,742 Diversified Mid-Cap Advisor 8,162 3 8,159 - - - Emerging Markets 8,678,192 2,364,577 6,313,615 6,501,025 1,269,887 5,231,138 Equity Growth 23,763 590 23,173 - - - Equity Growth Advisor - - - 7,053,917 9,615,850 (2,561,933) Equity Income 715,898 157,257 558,641 - - - Equity Income Advisor 47,562 - 47,562 - - - Equity Opportunity 10,707,624 7,860,701 2,846,923 11,244,435 5,753,173 5,491,262 Equity Opportunity Advisor 68,680 3,462 65,218 - - - Focus Value 927,802 217,748 710,054 - - - Focus Value Advisor 4,735 - 4,735 - - - Fully Managed 16,893,498 5,743,297 11,150,201 15,753,519 5,774,203 9,979,316 Fully Managed Advisor 92,813 3,431 89,382 - - - Fundamental Growth Focus 412,537 67,974 344,563 - - - Fundamental Growth Advisor 11,445 7 11,438 - - - Global Franchise 2,512,607 851,207 1,661,400 - - - Global Franchise Advisor 78,879 4,514 74,365 - - - Growth 88,418,811 101,385,523 (12,966,712) 56,738,599 57,342,210 (603,611) Growth Advisor 9,416 - 9,416 - - - Hard Assets 8,767,576 6,176,025 2,591,551 1,479,521 1,669,257 (189,736) Hard Assets Advisor 9,841 - 9,841 - - - International Enhanced EAFE 2,304,452 1,696,647 607,805 - - -
106 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- The GCG Trust (continued): International Enhanced EAFE Advisor 16,921 29 16,892 - - - International Equity 88,470,226 88,235,675 234,551 140,797,564 141,233,941 (436,377) International Equity Advisor 25,956 3 25,953 - - - Internet Tollkeeper 3,969,315 1,909,841 2,059,474 867,730 158,666 709,064 Internet Tollkeeper Advisor 5,119 - 5,119 - - - Investors 5,380,431 2,510,400 2,870,031 8,174,409 1,445,937 6,728,472 Investors Advisor 30,514 17 30,497 - - - J.P. Morgan Fleming Small Cap Equity 1,450,310 238,479 1,211,831 - - - J.P. Morgan Fleming Small Cap Advisor 53,904 3 53,901 - - - Janus Growth and Income 11,879,305 3,750,330 8,128,975 10,214,159 1,007,740 9,206,419 Janus Growth and Income Advisor 60,374 - 60,374 - - - Large Cap Value 22,131,127 10,157,539 11,973,588 21,298,417 3,032,221 18,266,196 Large Cap Value Advisor 32,499 - 32,499 - - - Limited Maturity Bond 19,089,421 10,093,155 8,996,266 21,094,466 13,022,965 8,071,501 Liquid Asset 432,718,159 435,462,419 (2,744,260) 406,837,337 381,974,408 24,862,929 Liquid Asset Advisor 376,779 196,446 180,333 - - - Managed Global 29,219,248 27,211,114 2,008,134 57,913,358 54,827,286 3,086,072 Managed Global Advisor 4,848 - 4,848 - - - Market Manager - - - - 238,516 (238,516) Mid-Cap Growth 37,536,301 39,509,334 (1,973,033) 26,837,412 24,939,789 1,897,623 Mid-Cap Growth Advisor 56,277 2 56,275 - - - Real Estate 6,070,387 3,723,970 2,346,417 3,276,661 2,545,459 731,202 Real Estate Advisor 28,719 3 28,716 - - - Research 14,355,356 17,693,135 (3,337,779) 11,109,168 10,124,605 984,563 Research Advisor 33,623 - 33,623 - - - Special Situations 2,057,335 1,380,067 677,268 3,020,279 751,676 2,268,603 Special Situations Advisor 5,773 - 5,773 - - - Strategic Equity 39,062,471 42,593,565 (3,531,094) 18,048,284 19,375,073 (1,326,789) Strategic Equity Advisor 8,044 - 8,044 - - - Total Return 17,689,754 11,652,054 6,037,700 16,341,446 6,826,503 9,514,943 Total Return Advisor 100,210 5,006 95,204 - - - Value Equity 8,835,743 8,086,769 748,974 7,284,108 5,650,995 1,633,113 Value Equity Advisor 12,051 923 11,128 - - - Van Kampen Growth and Income 5,686,825 8,964,808 (3,277,983) 5,403,189 5,969,298 (566,109) Van Kampen Growth and Income Advisor 105,373 4,220 101,153 - - - AIM Variable Insurance Funds: AIM V.I. Dent Demographic Trends 2,175,335 948,298 1,227,037 339,548 16,457 323,091 AIM V.I. Growth 129,633 51,493 78,140 42,954 57 42,897 AIM V.I. Capital Appreciation 3,701 - 3,701 - - - AIM V.I. Core Equity 4,961 - 4,961 - - - AIM V.I. Premier Equity 11,714 - 11,714 - - - Alliance Variable Products Series Fund, Inc. Alliance Bernstein Value 298,200 42,183 256,017 71,653 12,180 59,473 Alliance Growth and Income 585,752 114,322 471,430 181,005 8,620 172,385 Alliance Premier Growth 467,717 260,296 207,421 123,347 9,253 114,094
107 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- Fidelity(R)Variable Insurance Products Fund: Fidelity(R)VIP Growth 8,076,321 4,495,778 3,580,543 80,283 5,508 74,775 Fidelity(R)VIP Equity-Income 8,251,501 5,400,874 2,850,627 214,691 11,435 203,256 Fidelity(R)VIP Contrafund(R) 540,071 148,494 391,577 171,166 49,255 121,911 Fidelity(R)VIP Overseas 1,171 - 1,171 Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 1,965 25 1,940 - - - Greenwich Street Series Fund: Greenwich Appreciation 4,624 4,584 40 2,637 6,303 (3,666) The Galaxy VIP Fund: Galaxy VIP Asset Allocation 1,789 52,447 (50,658) 19,007 19,492 (485) Galaxy VIP Equity 2,539 15,793 (13,254) 11,685 17,902 (6,217) Galaxy VIP Growth and Income 561 3,752 (3,191) 5,606 12,104 (6,498) Galaxy VIP High Quality Bond 2,096 4,759 (2,663) 7,406 1,490 5,916 Galaxy VIP Small Company Growth 1,172 1,052 120 1,341 329 1,012 ING GET Fund: ING GET Fund - Series N 43,042 189,804 (146,762) 3,305,373 296,325 3,009,048 ING GET Fund - Series P 772,618 1,720,085 (947,467) 15,403,642 127,730 15,275,912 ING GET Fund - Series Q 18,122,750 1,458,265 16,664,485 190,471 - 190,471 ING GET Fund - Series R 18,803,947 1,893,348 16,910,599 - - - ING GET Fund - Series S 22,953,264 1,085,776 21,867,488 - - - ING GET Fund - Series T 23,875,059 232,370 23,642,689 - - - ING GET Fund - Series U 104,774 - 104,774 - - - ING Partners, Inc.: ING Alger Growth 5,956 - 5,956 - - - ING American Century Small Cap Value 215 - 215 - - - ING J.P. Morgan Mid Cap Value 950 31 919 - - - ING MFS(R)Capital Opportunities (Initial Class) 39,538 6,696 32,842 - - - ING MFS(R)Capital Opportunities (Service Class) 169,917 39,170 130,747 79,584 1,274 78,310 ING MFS(R)Global Growth 10,569 - 10,569 - - - ING OpCap Balanced Value 9,184 144 9,040 - - - ING PIMCO Total Return 16,208 - 16,208 - - - ING Salomon Bros. Capital 57,930 2,748 55,182 - - - ING Salomon Bros. Investors Value 487 - 487 - - - ING Scudder International Growth 1,232 - 1,232 - - - ING T. Rowe Price Growth Equity 19,085 - 19,085 - - - ING UBS Tactical Asset Allocation 297 - 297 - - - ING Van Kampen Comstock 218,552 8,852 209,700 - - - ING Variable Insurance Trust: ING VP Worldwide Growth 4,884,109 2,447,811 2,436,298 3,791,068 1,563,623 2,227,445 ING VP Bond Portfolio: ING VP Bond 7,230,384 2,562,132 4,668,252 - - - ING Variable Portfolios, Inc.: ING VP Growth 6,679 110 6,569 - - - ING VP Index Plus LargeCap 989,798 442,688 547,110 99,176 12,643 86,533 ING VP Index Plus MidCap 1,075,901 467,221 608,680 90,604 7,688 82,916
108 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- ING Variable Portfolios, Inc. (continued): ING VP Index Plus SmallCap 1,032,462 634,554 397,908 96,255 28,852 67,403 ING VP Small Company 27,484 6,772 20,712 - - - ING VP Value Opportunity 162,657 30,086 132,571 34,696 1,645 33,051 ING Variable Products Trust: ING VP Convertible 111,643 22,720 88,923 18,782 347 18,435 ING VP Growth Opportunities 1,984,390 760,395 1,223,995 931,175 259,800 671,375 ING VP International Value 5,020 82 4,938 - - - ING VP Large Company Value 151,517 46,425 105,092 45,138 30,153 14,985 ING VP LargeCap Growth 281,373 173,739 107,634 56,377 733 55,644 ING VP MagnaCap 1,873,780 706,779 1,167,001 632,349 53,590 578,759 ING VP MidCap Opportunities 1,700 - 1,700 - - - ING VP SmallCap Opportunities 6,167,933 1,352,225 4,815,708 2,548,996 811,701 1,737,295 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 8,952,534 6,278,761 2,673,773 434,280 177,355 256,925 INVESCO VIF - Health Sciences 11,553,067 8,591,990 2,961,077 1,421,950 369,814 1,052,136 INVESCO VIF - Leisure 1,002,159 278,062 724,097 - - - INVESCO VIF - Utilities 1,413,473 305,358 1,108,115 141,238 22,159 119,079 Janus Aspen Series: Janus Aspen Series Balanced 57,501 3,830 53,671 - - - Janus Aspen Series Flexible Income 25,934 170 25,764 - - - Janus Aspen Series Growth 26,711 20 26,691 - - - Janus Aspen Series Worldwide Growth 13,323,220 12,946,666 376,554 146,938 8,275 138,663 Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 29,681 2,882 26,799 - - - Oppenheimer Strategic Bond 5,028 3,500 1,528 - - - PIMCO Variable Insurance Trust: PIMCO High Yield 27,197,895 19,409,516 7,788,379 21,217,537 13,988,901 7,228,636 PIMCO StocksPLUS Growth and Income 13,357,877 14,285,763 (927,886) 8,925,373 7,365,612 1,559,761 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 21,635 61 21,574 - - - Pioneer Fund VCT 3,769,608 1,315,200 2,454,408 268,899 26,350 242,549 Pioneer Mid-Cap Value VCT 7,875,737 2,670,048 5,205,689 576,552 96,828 479,724 Pioneer Small Company VCT 431,876 92,472 339,404 107,907 10,101 97,806 ProFunds VP: ProFund VP Bull 18,816,487 16,427,269 2,389,218 4,686,896 2,370,498 2,316,398 ProFund VP Europe 30 50,746,741 48,922,218 1,824,523 23,135,968 22,371,682 764,286 ProFund VP Small-Cap 44,254,935 41,001,972 3,252,963 21,972,144 19,853,663 2,118,481 Prudential Series Fund, Inc.: Prudential Jennison 45,072,785 43,503,839 1,568,946 26,252,187 19,904,133 6,348,054 Prudential SP Jennison International Growth 10,464,472 8,810,383 1,654,089 12,383,699 10,604,474 1,779,225 Putnam Variable Trust: Putnam VT Growth and Income 199,811 27,845 171,966 50,302 2,090 48,212 Putnam VT International Growth and Income 355,859 48,525 307,334 70,513 6,733 63,780 Putnam VT Voyager II 227,745 22,636 205,109 68,823 2,835 65,988 109
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- Travelers Series Fund Inc.: Smith Barney High Income 35 3,035 (3,000) 93 4,626 (4,533) Smith Barney International All Cap Growth 80 2,233 (2,153) 277 1,051 (774) Smith Barney Large Cap Value 114 3,173 (3,059) 6 3,282 (3,276) Smith Barney Money Market 16 6,191 (6,175) 15,005 10,129 4,876 UBS Series Trust: UBS Tactical Allocation 165,483 32,046 133,437 89,352 5,615 83,737 110
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY Accumulation unit value information for units outstanding, by Contract type, as of December 31, 2002 follows:
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ALL CAP Contracts in accumulation period: DVA 41,458.754 $8.65 $358,618 DVA Series 100 3,137.705 8.56 26,859 DVA Plus - Standard (pre February 2000) 94,490.061 8.59 811,670 DVA Plus - Standard (post January 2000 & post 2000) 355,697.642 8.57 3,048,329 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,519,149.243 8.55 30,088,726 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,205,675.709 8.54 35,916,471 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,646,986.989 8.51 14,015,859 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 957,911.527 8.50 8,142,248 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,505,988.275 8.49 12,785,840 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,652,427.624 8.47 30,936,062 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,438,659.230 8.46 12,171,057 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,308,447.252 8.45 27,956,379 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 5,615,264.398 8.42 47,280,526 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,104.907 8.41 26,112 Access - Annual Ratchet (post April 2001) 186,268.904 8.39 1,562,796 Access - Max 5.5 (post April 2001), Landmark - Max 7 892,250.465 8.37 7,468,136 111
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ALL CAP (CONTINUED) Access - 7% Solution (post April 2001) 142,957.557 $8.36 $1,195,125 Access - Max 7 (post April 2001) 381,029.823 8.34 3,177,789 ES II - Max 7 (post 2000), Generations - Max 7 915,050.379 8.44 7,723,025 Landmark - 7% Solution 294,227.794 8.40 2,471,513 Value 71,708.265 8.68 622,428 ----------------- ----------------- 29,231,892.503 $247,785,568 ================= ================= GCG TRUST ALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,130.121 $9.53 $29,830 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 75.548 9.53 720 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,247.033 9.53 21,414 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 8,123.878 9.52 77,339 ES II - Max 7 (post 2000), Generations - Max 7 4,915.691 9.52 46,797 ----------------- ----------------- 18,492.271 $176,100 ================= ================= GCG TRUST ASSET ALLOCATION GROWTH Contracts in accumulation period: DVA 2,027.410 $7.33 $14,861 DVA Plus - Standard (pre February 2000) 26,126.263 7.29 190,460 DVA Plus - Standard (post January 2000 & post 2000) 70,920.996 7.28 516,305 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 660,455.843 7.26 4,794,909 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,194,266.289 7.25 8,658,431 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 169,483.674 7.24 1,227,062 112
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ASSET ALLOCATION GROWTH (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 187,063.134 $7.23 $1,352,466 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 337,704.673 7.22 2,438,228 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 501,198.187 7.21 3,613,639 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 446,755.295 7.20 3,216,638 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 987,291.899 7.20 7,108,502 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,284,001.843 7.18 9,219,133 Access - Annual Ratchet (post April 2001) 51,903.335 7.16 371,628 Access - Max 5.5 (post April 2001), Landmark - Max 7 224,828.378 7.15 1,607,523 Access - 7% Solution (post April 2001) 31,656.908 7.14 226,030 Access - Max 7 (post April 2001) 69,349.514 7.12 493,769 ES II - Max 7 (post 2000), Generations - Max 7 241,486.345 7.19 1,736,287 Landmark - 7% Solution 48,142.273 7.16 344,699 Value 16,589.694 7.35 121,934 ----------------- ----------------- 6,551,251.953 $47,252,504 ================= ================= GCG TRUST CAPITAL GROWTH Contracts in accumulation period: DVA 80 1,607.870 $10.52 $16,915 DVA 153,146.430 10.37 1,588,128 DVA Series 100 8,227.787 10.13 83,347 DVA Plus - Standard (pre February 2000) 380,316.760 10.20 3,879,231 DVA Plus - Standard (post January 2000 & post 2000) 142,766.855 10.17 1,451,939 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,368,760.600 10.10 54,224,482 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,918,853.410 10.06 19,303,665 113
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GROWTH (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,478,808.490 $9.99 $44,743,297 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 749,731.689 9.96 7,467,328 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 481,010.436 9.92 4,771,624 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 6,139,683.548 9.89 60,721,470 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 616,585.888 9.86 6,079,537 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,761,535.292 9.82 17,298,277 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,863,527.950 9.76 18,188,033 Access - Annual Ratchet (post April 2001) 30,974.973 9.66 299,218 Access - Max 5.5 (post April 2001), Landmark - Max 7 184,178.500 9.62 1,771,797 Access - 7% Solution (post April 2001) 58,702.850 9.59 562,960 Access - Max 7 (post April 2001) 67,393.152 9.52 641,583 ES II - Max 7 (post 2000), Generations - Max 7 249,302.116 9.79 2,440,668 Landmark - 7% Solution 56,387.454 9.69 546,394 Value 65,321.974 10.45 682,615 ----------------- ----------------- 24,776,824.024 $246,762,508 ================= ================= GCG TRUST CAPITAL GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,843.350 $10.46 $19,281 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 341.182 10.45 3,565 114
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GROWTH ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 6,840.247 $10.45 $71,481 ES II - Max 7 (post 2000), Generations - Max 7 5,100.584 10.45 53,301 ----------------- ----------------- 14,125.363 $147,628 ================= ================= GCG TRUST CAPITAL GUARDIAN SMALL CAP Currently payable annuity products: DVA 2,297.593 $13.52 $31,063 Contracts in accumulation period: DVA 80 14,858.695 13.71 203,713 DVA 214,874.378 13.52 2,905,102 DVA Series 100 13,572.305 13.18 178,883 DVA Plus - Standard (pre February 2000) 343,421.977 13.28 4,560,644 DVA Plus - Standard (post January 2000 & post 2000) 235,631.961 13.23 3,117,411 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,592,780.344 13.14 73,489,134 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,987,430.595 13.09 39,105,466 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,048,976.100 13.00 52,636,689 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,000,666.713 12.95 12,958,634 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 874,016.460 12.91 11,283,552 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,163,677.792 12.86 53,544,896 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 857,077.537 12.82 10,987,734 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,319,409.725 12.77 29,618,862 115
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GUARDIAN SMALL CAP (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,389,035.932 $12.68 $30,292,976 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,453.358 12.64 18,370 Access - Annual Ratchet (post April 2001) 61,290.156 12.55 769,191 Access - Max 5.5 (post April 2001), Landmark - Max 7 350,648.747 12.50 4,383,109 Access - 7% Solution (post April 2001) 54,701.732 12.46 681,584 Access - Max 7 (post April 2001) 69,007.571 12.37 853,624 ES II - Max 7 (post 2000), Generations - Max 7 518,748.741 12.73 6,603,671 Landmark - 7% Solution 123,957.985 12.59 1,560,631 Access One 1,141.000 14.00 15,974 Value 100,785.890 13.61 1,371,696 ----------------- ----------------- 26,339,463.287 $341,172,609 ================= ================= GCG TRUST CAPITAL GUARDIAN SMALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,340.969 $9.73 $51,968 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,152.595 9.72 11,203 ES II - Max 7 (post 2000), Generations - Max 7 26,474.859 9.72 257,336 ----------------- ----------------- 32,968.423 $320,507 ================= ================= GCG TRUST CORE BOND Contracts in accumulation period: DVA 80 753.424 $13.35 $10,058 DVA 90,062.736 13.13 1,182,524 DVA Series 100 738.171 12.76 9,419 DVA Plus - Standard (pre February 2000) 223,688.583 12.87 2,878,872 DVA Plus - Standard (post January 2000 & post 2000) 284,926.081 12.81 3,649,903 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,410,374.581 12.71 56,055,861 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,516,489.676 12.65 57,133,594 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,142,594.793 12.55 26,889,565 116
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CORE BOND (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 689,474.728 $12.49 $8,611,539 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,936,105.724 12.44 24,085,155 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,423,425.565 12.39 54,806,243 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,446,384.844 12.34 17,848,389 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,457,226.108 12.29 42,489,309 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 5,600,336.870 12.19 68,268,106 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 32,107.716 12.13 389,467 Access - Annual Ratchet (post April 2001) 134,069.579 12.03 1,612,857 Access - Max 5.5 (post April 2001), Landmark - Max 7 836,450.736 11.98 10,020,680 Access - 7% Solution (post April 2001) 299,610.090 11.93 3,574,348 Access - Max 7 (post April 2001) 390,105.072 11.83 4,614,943 ES II - Max 7 (post 2000), Generations - Max 7 1,325,734.470 12.24 16,226,990 Landmark - 7% Solution 529,439.956 12.08 6,395,635 Value 71,442.238 13.24 945,895 VA Option I 161,643.514 13.19 2,132,078 VA Option II 104,350.003 12.86 1,341,941 VA Option III 78,978.140 12.70 1,003,022 VA Bonus Option I 410,566.626 12.65 5,193,668 VA Bonus Option II 238,795.640 12.34 2,946,738 VA Bonus Option III 280,007.129 12.18 3,410,487 SmartDesign Advantage Option I 41,826.052 11.89 497,312 SmartDesign Advantage Option II 33,654.867 11.69 393,425 SmartDesign Advantage Option III 27,833.585 11.55 321,478 Rollover Choice Option I 11,209.365 13.41 150,318 Rollover Choice Option II 7,405.249 13.19 97,675 --------------- ---------------- 34,237,811.911 $425,187,494 =============== ================ GCG TRUST CORE BOND ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 27,862.818 $10.26 $285,873 117
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CORE BOND ADVISOR (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,219.045 $10.26 $43,287 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 6,367.528 10.25 65,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 48,272.777 10.25 494,796 ES II - Max 7 (post 2000), Generations - Max 7 10,048.284 10.24 102,894 --------------- --------------- 96,770.452 $992,117 =============== =============== GCG TRUST DEVELOPING WORLD Currently payable annuity products: DVA 12,255.773 $6.36 $77,947 Contracts in accumulation period: DVA 80 14,178.783 6.42 91,028 DVA 475,932.987 6.36 3,026,934 DVA Series 100 18,313.765 6.25 114,461 DVA Plus - Standard (pre February 2000) 207,165.986 6.28 1,301,002 DVA Plus - Standard (post January 2000 & post 2000) 144,724.137 6.26 905,973 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,925,891.221 6.23 11,998,302 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,365,017.451 6.22 8,490,409 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,372,716.295 6.19 8,497,114 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 474,427.290 6.17 2,927,216 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 249,735.938 6.16 1,538,373 118
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DEVELOPING WORLD (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,283,289.404 $6.14 $7,879,397 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 256,922.106 6.13 1,574,933 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 690,414.368 6.11 4,218,432 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 847,173.047 6.08 5,150,812 Access - Annual Ratchet (post April 2001) 45,608.548 6.04 275,476 Access - Max 5.5 (post April 2001), Landmark - Max 7 87,622.124 6.02 527,485 Access - 7% Solution (post April 2001) 14,127.458 6.01 84,906 Access - Max 7 (post April 2001) 39,283.433 5.98 234,915 ES II - Max 7 (post 2000), Generations - Max 7 89,889.364 6.10 548,325 Landmark - 7% Solution 40,885.379 6.05 247,357 Value 46,745.779 6.39 298,706 --------------- --------------- 9,702,320.636 $60,009,503 =============== =============== GCG TRUST DEVELOPING WORLD ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 520.886 $9.71 $5,058 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 5,949.670 9.70 57,712 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 504.135 9.70 4,890 ES II - Max 7 (post 2000), Generations - Max 7 1,184.808 9.70 11,493 --------------- --------------- 8,159.499 $79,153 =============== =============== GCG TRUST DIVERSIFIED MID-CAP Contracts in accumulation period: DVA 14,377.938 $7.30 $104,959 DVA Series 100 547.871 7.24 3,967 DVA Plus - Standard (pre February 2000) 52,084.982 7.26 378,137 DVA Plus - Standard (post January 2000 & post 2000) 107,226.771 7.25 777,394 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,436,693.678 7.23 10,387,295 119
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DIVERSIFIED MID-CAP (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,947,601.094 $7.22 $14,061,680 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 504,098.037 7.21 3,634,547 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 239,616.364 7.20 1,725,238 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 877,091.558 7.19 6,306,288 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,210,498.995 7.18 8,691,383 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 839,243.527 7.17 6,017,376 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,611,467.331 7.17 11,554,221 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,302,130.917 7.15 16,460,236 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,418.819 7.14 10,130 Access - Annual Ratchet (post April 2001) 78,293.863 7.12 557,452 Access - Max 5.5 (post April 2001), Landmark - Max 7 492,026.422 7.12 3,503,228 Access - 7% Solution (post April 2001) 74,631.497 7.11 530,630 Access - Max 7 (post April 2001) 181,302.263 7.09 1,285,433 ES II - Max 7 (post 2000), Generations - Max 7 532,775.028 7.16 3,814,669 Landmark - 7% Solution 163,816.671 7.13 1,168,013 Value 28,075.151 7.31 205,229 --------------- --------------- 12,695,018.777 $91,177,505 =============== =============== GCG TRUST DIVERSIFIED MID-CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,407.942 $9.48 $51,267 120
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DIVERSIFIED MID-CAP ADVISOR (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 432.092 $9.48 $4,096 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 243.004 9.47 2,301 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 12,952.240 9.47 122,658 ES II - Max 7 (post 2000), Generations - Max 7 4,137.894 9.47 39,186 --------------- --------------- 23,173.172 $219,508 =============== =============== GCG TRUST EQUITY GROWTH Contracts in accumulation period: DVA 3,698.022 $7.84 $28,992 DVA Plus - Standard (pre February 2000) 2,799.601 7.83 21,921 DVA Plus - Standard (post January 2000 & post 2000) 10,978.003 7.83 85,958 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 124,180.866 7.82 971,094 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 115,969.157 7.82 906,879 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 36,456.517 7.81 284,725 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 16,317.558 7.81 127,440 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 28,455.347 7.81 222,236 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 62,875.801 7.81 491,060 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 20,987.840 7.80 163,705 121
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY GROWTH (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 37,951.928 $7.80 $296,025 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 67,606.323 7.79 526,653 Access - Max 5.5 (post April 2001), Landmark - Max 7 10,421.530 7.78 81,080 Access - Max 7 (post April 2001) 852.028 7.78 6,629 ES II - Max 7 (post 2000), Generations - Max 7 10,170.532 7.80 79,330 Landmark - 7% Solution 8,348.943 7.79 65,038 Value 571.100 7.85 4,483 --------------- --------------- 558,641.096 $4,363,248 =============== =============== GCG TRUST EQUITY GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 500.893 $9.64 $4,829 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 15,788.036 9.63 152,039 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,058.799 9.63 19,826 ES II - Max 7 (post 2000), Generations - Max 7 29,214.728 9.63 281,338 --------------- --------------- 47,562.456 $458,032 =============== =============== GCG TRUST EQUITY INCOME Currently payable annuity products: DVA 80 1,348.359 $22.22 $29,661 DVA 25,612.255 21.61 553,481 Contracts in accumulation period: DVA 80 121,213.832 22.22 2,693,671 DVA 2,051,786.851 21.61 44,339,114 DVA Series 100 32,304.604 20.57 664,506 DVA Plus - Standard (pre February 2000) 255,606.846 20.89 5,339,627 DVA Plus - Standard (post January 2000 & post 2000) 159,632.560 20.72 3,307,587 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,796,771.768 20.45 57,193,983 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,137,260.309 20.28 43,343,639 122
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY INCOME (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,226,227.787 $20.03 $44,591,343 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 375,190.550 19.86 7,451,284 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 814,591.599 19.72 16,063,746 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,360,009.304 19.58 65,788,982 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 773,224.228 19.44 15,031,479 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,769,553.969 19.30 34,152,392 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,273,204.350 19.03 43,259,079 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 192.692 18.90 3,642 Access - Annual Ratchet (post April 2001) 69,736.079 18.63 1,299,183 Access - Max 5.5 (post April 2001), Landmark - Max 7 425,111.213 18.50 7,864,557 Access - 7% Solution (post April 2001) 90,035.804 18.37 1,653,958 Access - Max 7 (post April 2001) 94,236.389 18.11 1,706,621 ES II - Max 7 (post 2000), Generations - Max 7 479,847.384 19.17 9,198,674 Landmark - 7% Solution 151,475.992 18.76 2,841,690 Access One 875.000 23.18 20,283 Value 60,096.515 21.92 1,317,316 --------------- --------------- 20,545,146.239 $409,709,498 =============== =============== GCG TRUST EQUITY INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 14,864.732 $9.83 $146,120 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 18,285.717 9.82 179,566 123
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY INCOME ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 21,139.474 $9.82 $207,590 ES II - Max 7 (post 2000), Generations - Max 7 10,928.226 9.81 107,206 --------------- --------------- 65,218.149 $640,482 =============== =============== GCG TRUST EQUITY OPPORTUNITY Currently payable annuity products: DVA 14,478.487 $15.71 $227,457 Contracts in accumulation period: DVA 80 15,404.039 16.05 247,235 DVA 1,154,948.305 15.71 18,144,238 DVA Series 100 16,405.052 15.12 248,044 DVA Plus - Standard (pre February 2000) 284,899.727 15.31 4,361,815 DVA Plus - Standard (post January 2000 & post 2000) 184,671.967 15.21 2,808,861 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,929,610.455 15.06 44,119,933 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,951,375.489 14.96 29,192,577 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,915,535.853 14.82 43,208,241 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 692,996.783 14.72 10,200,913 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 479,670.392 14.64 7,022,375 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,453,225.380 14.56 50,278,962 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 577,200.232 14.48 8,357,859 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,643,361.524 14.41 23,680,840 124
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY OPPORTUNITY (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,091,212.810 $14.25 $29,799,783 Access - Annual Ratchet (post April 2001) 41,941.988 14.02 588,027 Access - Max 5.5 (post April 2001), Landmark - Max 7 132,555.663 13.94 1,847,826 Access - 7% Solution (post April 2001) 34,165.539 13.87 473,876 Access - Max 7 (post April 2001) 61,196.435 13.72 839,615 ES II - Max 7 (post 2000), Generations - Max 7 263,932.617 14.33 3,782,154 Landmark - 7% Solution 44,959.241 14.10 633,925 Value 56,140.426 15.88 891,510 ----------------- --------------- 19,039,888.404 $280,956,066 ================= =============== GCG TRUST EQUITY OPPORTUNITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 169.464 $9.75 $1,652 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,428.703 9.74 23,656 ES II - Max 7 (post 2000), Generations - Max 7 860.908 9.74 8,385 ----------------- --------------- 3,459.075 $33,693 ================= =============== GCG TRUST FOCUS VALUE Contracts in accumulation period: DVA Series 100 403.111 $8.37 $3,374 DVA Plus - Standard (post January 2000 & post 2000) 88.979 8.38 746 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 93,267.838 8.37 780,652 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 91,570.714 8.37 766,447 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 69,302.448 8.36 579,368 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 22,197.693 8.36 185,573 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 36,243.979 8.36 303,000 125
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FOCUS VALUE (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 94,260.227 $8.35 $787,073 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 16,518.844 8.35 137,932 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 53,879.191 8.35 449,891 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 94,082.902 8.34 784,651 Access - Annual Ratchet (post April 2001) 5,396.319 8.33 44,951 Access - Max 5.5 (post April 2001), Landmark - Max 7 15,877.599 8.33 132,260 Access - 7% Solution (post April 2001) 20,649.316 8.33 172,009 Access - Max 7 (post April 2001) 8,470.384 8.32 70,474 ES II - Max 7 (post 2000), Generations - Max 7 84,874.579 8.35 708,703 Landmark - 7% Solution 1,398.706 8.34 11,665 Value 1,571.082 8.40 13,197 --------------- --------------- 710,053.911 $5,931,966 =============== =============== GCG TRUST FOCUS VALUE ADVISOR Contracts in accumulation period: DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 222.890 $10.17 $2,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,252.965 10.16 12,730 ES II - Max 7 (post 2000), Generations - Max 7 3,259.390 10.16 33,115 --------------- --------------- 4,735.245 $48,112 =============== =============== GCG TRUST FULLY MANAGED Currently payable annuity products: DVA 80 476.959 $30.37 $14,885 DVA 17,327.473 29.53 511,680 Contracts in accumulation period: DVA 80 46,348.529 30.37 1,407,205 DVA 1,134,176.173 29.53 33,492,223 DVA Series 100 21,165.295 28.11 594,956 DVA Plus - Standard (pre February 2000) 435,649.731 28.55 12,437,800 DVA Plus - Standard (post January 2000 & post 2000) 281,689.371 28.32 7,977,443 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,326,018.141 27.96 148,915,467 126
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FULLY MANAGED (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,380,116.820 $27.72 $121,416,838 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,093,955.209 27.37 112,051,554 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 639,976.992 27.14 17,368,976 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,232,631.081 26.95 33,219,408 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 5,387,390.525 26.76 144,166,570 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,345,841.222 26.57 35,759,001 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,716,909.826 26.38 98,052,081 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,927,374.682 26.01 102,151,015 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 12,094.796 25.83 312,409 Access - Annual Ratchet (post April 2001) 122,475.644 25.46 3,118,230 Access - Max 5.5 (post April 2001), Landmark - Max 7 442,656.923 25.28 11,190,367 Access - 7% Solution (post April 2001) 164,221.185 25.10 4,121,952 Access - Max 7 (post April 2001) 217,796.256 24.75 5,390,457 ES II - Max 7 (post 2000), Generations - Max 7 1,256,046.260 26.20 32,908,412 Landmark - 7% Solution 232,111.293 25.65 5,953,655 Value 90,281.116 29.95 2,703,919 ----------------- ---------------- 34,524,731.502 $935,236,503 ================= ================ GCG TRUST FULLY MANAGED ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 8,749.639 $10.01 $87,584 127
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FULLY MANAGED ADVISOR (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,656.240 $10.01 $16,579 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 11,784.255 10.00 117,843 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 51,407.699 10.00 514,077 ES II - Max 7 (post 2000), Generations - Max 7 15,783.663 9.99 157,679 ---------------- --------------- 89,381.496 $893,762 ================ =============== GCG TRUST FUNDAMENTAL GROWTH FOCUS Contracts in accumulation period: DVA Plus - Standard (post January 2000 & post 2000) 4,821.861 $7.98 $38,478 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 44,772.613 7.97 356,838 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 27,663.603 7.97 220,479 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 18,057.041 7.97 143,915 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 754.698 7.96 6,007 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 60,486.886 7.96 481,476 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 44,257.084 7.96 352,286 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 16,838.025 7.96 134,031 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 27,465.089 7.95 218,347 128
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FUNDAMENTAL GROWTH FOCUS (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 62,915.346 $7.95 $500,177 Access - Max 5.5 (post April 2001), Landmark - Max 7 8,896.164 7.94 70,636 Access - 7% Solution (post April 2001) 297.033 7.93 2,355 ES II - Max 7 (post 2000), Generations - Max 7 26,080.260 7.95 207,338 Landmark - 7% Solution 1,011.739 7.94 8,033 Value 246.288 8.00 1,970 ---------------- ------------- 344,563.730 $2,742,366 ================ ============= GCG TRUST FUNDAMENTAL GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,049.598 $9.45 $38,269 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 6,209.274 9.44 58,616 ES II - Max 7 (post 2000), Generations - Max 7 1,178.801 9.44 11,128 ---------------- ------------- 11,437.673 $108,013 ================ ============= GCG TRUST GLOBAL FRANCHISE Contracts in accumulation period: DVA 80 1,187.427 $8.88 $10,544 DVA 640.174 8.87 5,678 DVA Plus - Standard (pre February 2000) 11,623.141 8.86 102,981 DVA Plus - Standard (post January 2000 & post 2000) 23,085.952 8.85 204,311 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 220,958.044 8.85 1,955,479 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 255,200.584 8.84 2,255,973 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 135,600.201 8.84 1,198,706 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 27,705.332 8.83 244,638 129
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GLOBAL FRANCHISE (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 136,897.046 $8.83 $1,208,801 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 222,557.194 8.83 1,965,180 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 53,322.828 8.83 470,841 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 133,793.649 8.82 1,180,060 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 201,785.907 8.82 1,779,752 Access - Annual Ratchet (post April 2001) 5,968.492 8.81 52,582 Access - Max 5.5 (post April 2001), Landmark - Max 7 40,257.987 8.80 354,270 Access - 7% Solution (post April 2001) 1,758.151 8.80 15,472 Access - Max 7 (post April 2001) 34,645.719 8.80 304,882 ES II - Max 7 (post 2000), Generations - Max 7 130,191.636 8.82 1,148,290 Landmark - 7% Solution 14,613.060 8.81 128,741 Value 9,607.419 8.88 85,314 ----------------- --------------- 1,661,399.943 $14,672,495 ================= =============== GCG TRUST GLOBAL FRANCHISE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 29,031.188 $9.52 $276,377 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 412.034 9.52 3,923 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,167.197 9.51 11,100 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 26,238.388 9.51 249,527 ES II - Max 7 (post 2000), Generations - Max 7 17,515.525 9.51 166,573 ----------------- --------------- 74,364.332 $707,500 ================= =============== 130
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GROWTH Contracts in accumulation period: DVA 80 12,857.714 $10.95 $140,792 DVA 368,583.831 10.81 3,984,391 DVA Series 100 10,762.408 10.55 113,543 DVA Plus - Standard (pre February 2000) 566,759.980 10.62 6,018,991 DVA Plus - Standard (post January 2000 & post 2000) 445,014.880 10.59 4,712,708 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,372,394.796 10.52 130,157,593 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 5,599,656.965 10.48 58,684,405 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 8,151,063.532 10.41 84,852,571 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 2,302,846.613 10.37 23,880,519 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,434,608.045 10.34 14,833,847 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 11,094,010.020 10.30 114,268,303 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,379,115.515 10.27 14,163,516 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 4,731,610.364 10.23 48,404,374 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 4,149,073.607 10.16 42,154,588 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,801.069 10.13 18,245 Access - Annual Ratchet (post April 2001) 60,336.832 10.06 606,989 Access - Max 5.5 (post April 2001), Landmark - Max 7 311,442.281 10.02 3,120,652 Access - 7% Solution (post April 2001) 62,459.653 9.99 623,972 Access - Max 7 (post April 2001) 134,109.863 9.92 1,330,370 ES II - Max 7 (post 2000), Generations - Max 7 464,260.700 10.20 4,735,459 131
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GROWTH (CONTINUED) Landmark - 7% Solution 149,093.481 $10.09 $1,504,353 Access One 808.000 11.18 9,033 Value 151,569.894 10.88 1,649,080 ----------------- --------------- 53,954,240.043 $559,968,294 ================= =============== GCG TRUST GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,337.665 $9.78 $42,422 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,872.645 9.77 28,066 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,205.411 9.76 21,525 ----------------- --------------- 9,415.721 $92,013 ================= =============== GCG TRUST HARD ASSETS Currently payable annuity products: DVA 1,451.663 $14.85 $21,557 Contracts in accumulation period: DVA 80 35,342.359 15.27 539,678 DVA 217,667.924 14.85 3,232,369 DVA Series 100 11,963.287 14.13 169,041 DVA Plus - Standard (pre February 2000) 64,493.201 14.35 925,477 DVA Plus - Standard (post January 2000 & post 2000) 36,131.929 14.23 514,157 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 575,255.091 14.05 8,082,334 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 436,184.996 13.94 6,080,419 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 561,649.827 13.76 7,728,302 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 62,770.602 13.64 856,191 132
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST HARD ASSETS (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 108,459.704 $13.55 $1,469,629 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 968,858.495 13.45 13,031,147 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 120,307.849 13.36 1,607,313 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 302,601.665 13.26 4,012,498 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 932,326.908 13.08 12,194,836 Access - Annual Ratchet (post April 2001) 23,531.967 12.80 301,209 Access - Max 5.5 (post April 2001), Landmark - Max 7 43,248.118 12.71 549,684 Access - 7% Solution (post April 2001) 11,014.885 12.62 139,008 Access - Max 7 (post April 2001) 23,773.123 12.44 295,738 ES II - Max 7 (post 2000), Generations - Max 7 389,188.424 13.17 5,125,612 Landmark - 7% Solution 14,039.187 12.89 180,965 Access One 14,311.339 15.93 227,980 Value 31,695.351 15.06 477,332 ----------------- -------------- 4,986,267.894 $67,762,476 ================= ============== GCG TRUST HARD ASSETS ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,119.434 $9.83 $11,004 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 25.690 9.83 253 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 239.543 9.82 2,352 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 7,945.259 9.82 78,022 ES II - Max 7 (post 2000), Generations - Max 7 511.225 9.82 5,020 ----------------- -------------- 9,841.151 $96,651 ================= ============== 133
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL ENHANCED EAFE Contracts in accumulation period: DVA 2,423.918 $8.25 $19,997 DVA Plus - Standard (pre February 2000) 4,118.741 8.23 33,897 DVA Plus - Standard (post January 2000 & post 2000) 2,548.665 8.23 20,976 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 72,897.915 8.22 599,221 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 106,211.466 8.22 873,058 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 33,208.173 8.22 272,971 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,278.309 8.21 35,125 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 81,976.969 8.21 673,031 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 52,606.310 8.21 431,898 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,890.018 8.21 81,197 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 51,442.150 8.20 421,826 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 138,594.248 8.20 1,136,473 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 466.576 8.19 3,821 Access - Annual Ratchet (post April 2001) 1,612.722 8.19 13,208 Access - Max 5.5 (post April 2001), Landmark - Max 7 6,369.326 8.19 52,165 Access - 7% Solution (post April 2001) 4,136.609 8.18 33,837 Access - Max 7 (post April 2001) 3,184.248 8.18 26,047 ES II - Max 7 (post 2000), Generations - Max 7 12,518.879 8.20 102,655 Landmark - 7% Solution 8,531.245 8.19 69,871 Value 1,514.364 8.25 12,494 VA Option I 3,925.552 8.25 32,386 VA Option II 42.615 8.23 351 134
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL ENHANCED EAFE (CONTINUED) VA Bonus Option I 1,123.321 $8.22 $9,234 VA Bonus Option II 806.164 8.21 6,619 VA Bonus Option III 2,716.806 8.20 22,278 SmartDesign Advantage Option I 71.304 8.18 583 SmartDesign Advantage Option II 587.775 8.17 4,802 ---------------- -------------- 607,804.388 $4,990,021 ================ ============== GCG TRUST INTERNATIONAL ENHANCED EAFE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,935.485 $9.76 $38,410 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,208.703 9.75 89,785 ES II - Max 7 (post 2000), Generations - Max 7 3,747.359 9.74 36,499 ---------------- -------------- 16,891.547 $164,694 ================ ============== GCG TRUST INTERNATIONAL EQUITY Contracts in accumulation period: DVA 14,806.091 $7.41 $109,713 DVA Plus - Standard (pre February 2000) 5,838.470 7.29 42,562 DVA Plus - Standard (post January 2000 & post 2000) 41,512.023 7.26 301,377 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,449,069.007 7.16 31,855,334 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,834,152.254 7.19 13,187,555 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,745,092.452 7.14 12,459,960 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 700,469.554 7.11 4,980,339 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 244,423.432 7.09 1,732,962 135
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL EQUITY (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,107,916.003 $7.07 $29,042,966 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 261,177.037 7.04 1,838,686 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,565,174.958 7.02 10,987,528 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,470,429.332 6.97 10,248,892 Access - Annual Ratchet (post April 2001) 8,794.725 6.90 60,684 Access - Max 5.5 (post April 2001), Landmark - Max 7 132,382.931 6.87 909,471 Access - 7% Solution (post April 2001) 28,442.290 6.85 194,830 Access - Max 7 (post April 2001) 28,306.916 6.80 192,487 ES II - Max 7 (post 2000), Generations - Max 7 221,112.964 6.99 1,545,580 Landmark - 7% Solution 55,117.980 6.92 381,416 Value 54,578.332 7.46 407,154 ----------------- ---------------- 16,968,796.751 $120,479,496 ================= ================ GCG TRUST INTERNATIONAL EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,275.003 $9.80 $22,295 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 7,027.611 9.79 68,800 ES II - Max 7 (post 2000), Generations - Max 7 16,649.992 9.79 163,003 ----------------- ---------------- 25,952.606 $254,098 ================= ================ GCG TRUST INTERNET TOLLKEEPER Contracts in accumulation period: DVA 2,033.594 $4.68 $9,517 DVA Series 100 1,507.485 4.65 7,010 DVA Plus - Standard (pre February 2000) 3,020.064 4.66 14,073 DVA Plus - Standard (post January 2000 & post 2000) 9,099.556 4.66 42,404 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 387,485.791 4.65 1,801,809 136
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNET TOLLKEEPER (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 519,243.692 $4.64 $2,409,291 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 109,776.291 4.64 509,362 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 18,672.457 4.63 86,453 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 240,376.369 4.63 1,112,943 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 151,985.088 4.63 703,691 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 181,314.866 4.62 837,675 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 220,934.965 4.62 1,020,720 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 447,885.199 4.61 2,064,751 Access - Annual Ratchet (post April 2001) 41,859.479 4.60 192,554 Access - Max 5.5 (post April 2001), Landmark - Max 7 141,022.746 4.59 647,294 Access - 7% Solution (post April 2001) 23,045.661 4.59 105,780 Access - Max 7 (post April 2001) 80,239.506 4.58 367,497 ES II - Max 7 (post 2000), Generations - Max 7 161,332.193 4.61 743,741 Landmark - 7% Solution 22,077.083 4.60 101,555 Value 5,625.439 4.69 26,383 ----------------- --------------- 2,768,537.524 $12,804,503 ================= =============== GCG TRUST INTERNET TOLLKEEPER ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 335.041 $10.42 $3,491 137
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNET TOLLKEEPER ADVISOR (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,329.443 $10.41 $13,840 ES II - Max 7 (post 2000), Generations - Max 7 3,454.704 10.40 35,929 ----------------- -------------- 5,119.188 $53,260 ================= ============== GCG TRUST INVESTORS Contracts in accumulation period: DVA 5,944.138 $8.17 $48,564 DVA Plus - Standard (pre February 2000) 37,817.102 8.11 306,697 DVA Plus - Standard (post January 2000 & post 2000) 169,038.915 8.09 1,367,525 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,177,891.614 8.07 9,505,585 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,674,081.360 8.06 13,493,096 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 590,391.269 8.04 4,746,746 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 330,087.985 8.02 2,647,306 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,030,210.891 8.01 8,251,989 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,371,276.985 8.00 10,970,216 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 534,292.847 7.99 4,269,000 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,333,386.702 7.98 10,640,426 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,079,376.721 7.95 16,531,045 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,596.183 7.94 20,614 138
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INVESTORS (CONTINUED) Access - Annual Ratchet (post April 2001) 88,534.000 $7.92 $701,189 Access - Max 5.5 (post April 2001), Landmark - Max 7 294,204.803 7.91 2,327,160 Access - 7% Solution (post April 2001) 33,193.925 7.89 261,900 Access - Max 7 (post April 2001) 215,194.574 7.87 1,693,581 ES II - Max 7 (post 2000), Generations - Max 7 336,121.073 7.96 2,675,524 Landmark - 7% Solution 160,813.629 7.93 1,275,252 Value 51,170.187 8.19 419,084 ----------------- --------------- 11,515,624.903 $92,152,499 ================= =============== GCG TRUST INVESTORS ADVISOR Contracts in accumulation period: DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 5,609.111 $9.75 $54,689 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,588.611 9.75 25,239 ES II - Max 7 (post 2000), Generations - Max 7 22,298.988 9.74 217,192 ----------------- --------------- 30,496.710 $297,120 ================= =============== GCG TRUST J.P. MORGAN FLEMING SMALL CAP EQUITY Contracts in accumulation period: DVA 3,893.026 $7.87 $30,638 DVA Plus - Standard (pre February 2000) 6,459.288 7.85 50,705 DVA Plus - Standard (post January 2000 & post 2000) 13,266.013 7.85 104,138 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 169,670.331 7.85 1,331,912 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 209,858.323 7.84 1,645,289 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 31,083.841 7.84 243,697 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 14,675.334 7.83 114,908 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 114,379.561 7.83 895,592 139
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST J.P. MORGAN FLEMING SMALL CAP EQUITY (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 166,809.449 $7.83 $1,306,118 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 72,176.099 7.83 565,139 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 95,249.109 7.82 744,848 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 155,619.727 7.82 1,216,946 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,107.867 7.82 16,484 Access - Annual Ratchet (post April 2001) 5,346.492 7.81 41,756 Access - Max 5.5 (post April 2001), Landmark - Max 7 37,673.562 7.81 294,231 Access - 7% Solution (post April 2001) 47.133 7.81 368 Access - Max 7 (post April 2001) 8,558.644 7.80 66,757 ES II - Max 7 (post 2000), Generations - Max 7 54,217.816 7.82 423,983 Landmark - 7% Solution 18,981.527 7.81 148,246 Value 9,884.594 7.87 77,792 VA Option I 2,395.075 7.87 18,849 VA Option II 202.769 7.85 1,592 VA Option III 74.699 7.85 586 VA Bonus Option I 11,543.916 7.84 90,504 VA Bonus Option II 2,705.468 7.83 21,184 VA Bonus Option III 2,734.971 7.82 21,387 SmartDesign Advantage Option I 277.276 7.80 2,163 SmartDesign Advantage Option II 1,939.734 7.79 15,111 ----------------- --------------- 1,211,831.644 $9,490,923 ================= =============== GCG TRUST J.P. MORGAN FLEMING SMALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,546.872 $9.49 $119,070 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 51.434 9.49 488 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 11,332.630 9.48 107,433 140
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST J.P. MORGAN FLEMING SMALL CAP ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 12,802.704 $9.48 $121,370 ES II - Max 7 (post 2000), Generations - Max 7 17,168.053 9.48 162,753 ----------------- --------------- 53,901.693 $511,114 ================= =============== GCG TRUST JANUS GROWTH AND INCOME Contracts in accumulation period: DVA 19,775.056 $7.11 $140,601 DVA Series 100 3,746.840 7.06 26,453 DVA Plus - Standard (pre February 2000) 78,084.441 7.07 552,057 DVA Plus - Standard (post January 2000 & post 2000) 257,195.925 7.07 1,818,375 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,676,922.509 7.05 11,822,304 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,831,574.297 7.04 19,934,283 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 719,851.323 7.03 5,060,555 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 315,169.992 7.02 2,212,493 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,160,151.753 7.01 8,132,664 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,909,356.758 7.00 13,365,497 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,307,255.573 6.99 9,137,716 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,513,591.776 6.99 17,570,007 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,186,621.478 6.97 22,210,752 141
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST JANUS GROWTH AND INCOME (CONTINUED) Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,288.195 $6.96 $36,806 Access - Annual Ratchet (post April 2001) 132,023.878 6.95 917,566 Access - Max 5.5 (post April 2001), Landmark - Max 7 584,691.147 6.94 4,057,757 Access - 7% Solution (post April 2001) 103,609.107 6.93 718,011 Access - Max 7 (post April 2001) 255,764.423 6.91 1,767,332 ES II - Max 7 (post 2000), Generations - Max 7 803,023.067 6.98 5,605,101 Landmark - 7% Solution 184,660.669 6.95 1,283,392 Value 54,814.567 7.13 390,828 VA Option I 150,753.831 7.12 1,073,367 VA Option II 48,439.217 7.07 342,465 VA Option III 17,896.151 7.05 126,168 VA Bonus Option I 167,273.116 7.04 1,177,603 VA Bonus Option II 75,159.946 6.99 525,368 VA Bonus Option III 38,566.865 6.97 268,811 SmartDesign Advantage Option I 4,647.962 6.92 32,164 SmartDesign Advantage Option II 7,683.653 6.89 52,940 SmartDesign Advantage Option III 2,197.487 6.87 15,097 ----------------- ---------------- 18,615,791.002 $130,374,533 ================= ================ GCG TRUST JANUS GROWTH AND INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 20,265.683 $9.73 $197,185 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 6,270.030 9.72 60,945 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 24,716.980 9.72 240,249 ES II - Max 7 (post 2000), Generations - Max 7 9,121.503 9.71 88,570 ----------------- ---------------- 60,374.196 $586,949 ================= ================ GCG TRUST LARGE CAP VALUE Contracts in accumulation period: DVA 45,296.402 $7.62 $345,159 DVA Series 100 2,185.539 7.54 16,479 DVA Plus - Standard (pre February 2000) 154,789.655 7.56 1,170,210 DVA Plus - Standard (post January 2000 & post 2000) 533,166.943 7.55 4,025,410 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,513,819.120 7.53 33,989,058 142
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LARGE CAP VALUE (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 6,465,372.229 $7.52 $48,619,599 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,128,387.026 7.50 15,962,903 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,328,528.910 7.48 9,937,396 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,660,134.746 7.47 19,871,207 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,117,976.668 7.46 30,720,106 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,719,020.902 7.45 20,256,706 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 5,103,820.816 7.44 37,972,427 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 6,279,536.964 7.42 46,594,164 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 685.718 7.41 5,081 Access - Annual Ratchet (post April 2001) 153,495.420 7.39 1,134,331 Access - Max 5.5 (post April 2001), Landmark - Max 7 916,295.246 7.37 6,753,096 Access - 7% Solution (post April 2001) 190,461.403 7.36 1,401,796 Access - Max 7 (post April 2001) 486,302.358 7.34 3,569,459 ES II - Max 7 (post 2000), Generations - Max 7 1,216,648.520 7.43 9,039,699 Landmark - 7% Solution 483,293.216 7.40 3,576,370 Access One 185.000 7.73 1,430 Value 102,148.307 7.64 780,413 ----------------- ---------------- 39,601,551.108 $295,742,499 ================= ================ 143
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LARGE CAP VALUE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 8,771.780 $10.27 $90,086 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 220.967 10.26 2,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,363.630 10.26 96,071 ES II - Max 7 (post 2000), Generations - Max 7 14,142.339 10.25 144,959 ----------------- --------------- 32,498.716 $333,383 ================= =============== GCG TRUST LIMITED MATURITY BOND Currently payable annuity products: DVA 80 2,359.019 $21.88 $51,615 DVA 6,619.882 21.27 140,805 Contracts in accumulation period: DVA 80 34,224.282 21.88 748,828 DVA 846,602.221 21.27 18,007,229 DVA Series 100 12,011.152 20.25 243,226 DVA Plus - Standard (pre February 2000) 431,757.457 20.58 8,885,568 DVA Plus - Standard (post January 2000 & post 2000) 325,166.054 20.38 6,626,884 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,261,694.220 20.16 126,235,755 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 3,840,532.602 19.95 76,618,625 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,063,485.056 19.73 60,442,560 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 629,610.846 19.53 12,296,300 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 917,937.051 19.40 17,807,979 144
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIMITED MATURITY BOND (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,436,722.906 $19.29 $85,584,385 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,001,052.596 19.12 19,140,126 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,793,640.320 18.99 53,051,230 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,647,004.840 18.72 49,551,931 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,404.724 18.62 119,256 Access - Annual Ratchet (post April 2001) 115,924.795 18.36 2,128,379 Access - Max 5.5 (post April 2001), Landmark - Max 7 187,662.150 18.23 3,421,081 Access - 7% Solution (post April 2001) 102,237.878 18.10 1,850,506 Access - Max 7 (post April 2001) 117,719.660 17.84 2,100,119 ES II - Max 7 (post 2000), Generations - Max 7 457,642.573 18.89 8,644,868 Landmark - 7% Solution 148,372.597 18.49 2,743,409 Access One 1,261.000 22.84 28,801 Value 118,011.620 21.60 2,549,051 ----------------- ---------------- 28,505,657.501 $559,018,516 ================= ================ GCG TRUST LIQUID ASSET Currently payable annuity products: DVA 80 2,612.969 $17.21 $44,969 DVA 1,526.708 16.74 25,557 Contracts in accumulation period: DVA 80 149,703.142 17.21 2,576,391 DVA 679,365.487 16.74 11,372,578 DVA Series 100 44,784.895 15.93 713,423 DVA Plus - Standard (pre February 2000) 695,808.213 16.18 11,258,177 DVA Plus - Standard (post January 2000 & post 2000) 337,508.715 16.00 5,400,139 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,089,343.159 15.84 191,495,196 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 10,877,062.661 15.66 170,334,801 145
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIQUID ASSET (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 5,577,965.813 $15.51 $86,514,250 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 2,297,033.266 15.33 35,213,520 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,599,933.376 15.23 24,366,985 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 8,964,021.189 15.17 135,984,201 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,590,575.818 15.01 23,874,543 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 10,613,767.944 14.91 158,251,280 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 7,015,870.143 14.70 103,133,291 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,321.100 14.64 282,861 Access - Annual Ratchet (post April 2001) 327,508.915 14.43 4,725,954 Access - Max 5.5 (post April 2001), Landmark - Max 7 514,408.939 14.33 7,371,480 Access - 7% Solution (post April 2001) 102,402.302 14.23 1,457,185 Access - Max 7 (post April 2001) 300,237.886 14.03 4,212,338 ES II - Max 7 (post 2000), Generations - Max 7 749,575.552 14.85 11,131,197 Landmark - 7% Solution 246,747.572 14.54 3,587,710 Value 117,368.795 16.98 1,992,922 VA Option I 125,681.154 16.86 2,118,984 VA Option II 65,629.633 16.16 1,060,575 VA Option III 17,951.798 15.82 283,997 VA Bonus Option I 379,646.273 15.71 5,964,243 VA Bonus Option II 116,033.602 15.05 1,746,306 VA Bonus Option III 130,082.443 14.74 1,917,415 SmartDesign Advantage Option I 948,016.951 14.15 13,414,440 SmartDesign Advantage Option II 44,327.639 13.75 609,505 SmartDesign Advantage Option III 29,720.969 13.46 400,044 Rollover Choice Option I 25,088.627 17.34 435,037 ----------------- ----------------- 66,796,633.647 $1,023,271,494 ================= ================= 146
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIQUID ASSET ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 28,048.150 $9.99 $280,201 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 14,084.319 9.99 140,702 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 14,647.450 9.98 146,182 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 65,111.528 9.98 649,813 ES II - Max 7 (post 2000), Generations - Max 7 58,442.123 9.98 583,252 ----------------- ---------------- 180,333.570 $1,800,150 ================= ================ GCG TRUST MANAGED GLOBAL Currently payable annuity products: DVA 6,904.811 $14.39 $99,360 Contracts in accumulation period: DVA 80 12,796.817 14.69 187,985 DVA 1,163,854.594 14.39 16,747,868 DVA Series 100 19,801.323 13.89 275,040 DVA Plus - Standard (pre February 2000) 392,630.543 14.02 5,504,680 DVA Plus - Standard (post January 2000 & post 2000) 262,335.765 13.93 3,654,337 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,965,665.844 13.80 27,126,189 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,246,689.590 13.71 30,802,114 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,796,757.957 13.59 38,007,941 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 629,167.687 13.50 8,493,764 147
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MANAGED GLOBAL (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,121,603.349 $13.43 $15,063,133 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,143,491.481 13.36 15,277,046 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 592,153.300 13.29 7,869,717 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,564,387.791 13.23 20,696,850 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,515,103.147 13.09 19,832,700 Access - Annual Ratchet (post April 2001) 44,003.244 12.89 567,202 Access - Max 5.5 (post April 2001), Landmark - Max 7 210,410.956 12.82 2,697,468 Access - 7% Solution (post April 2001) 59,805.081 12.75 762,515 Access - Max 7 (post April 2001) 102,390.142 12.62 1,292,164 ES II - Max 7 (post 2000), Generations - Max 7 367,449.857 13.16 4,835,640 Landmark - 7% Solution 127,169.390 12.95 1,646,844 Access One 953.000 15.12 14,409 Value 113,467.340 14.51 1,646,411 ----------------- ---------------- 16,458,993.009 $223,101,377 ================= ================ GCG TRUST MANAGED GLOBAL ADVISOR Contracts in accumulation period: Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 3,121.056 $10.23 $31,928 ES II - Max 7 (post 2000), Generations - Max 7 1,726.583 10.23 17,663 ----------------- ---------------- 4,847.639 $49,591 ================= ================ GCG TRUST MID-CAP GROWTH Currenlty payable annuity products: DVA 3,693.891 $16.62 $61,392 Contracts in accumulation period: DVA 80 24,281.313 16.90 410,354 DVA 658,498.563 16.62 10,944,247 DVA Series 100 11,781.116 16.14 190,147 DVA Plus - Standard (pre February 2000) 356,065.245 16.28 5,796,742 DVA Plus - Standard (post January 2000 & post 2000) 262,443.098 16.21 4,254,203 148
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MID-CAP GROWTH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,485,147.242 $16.05 $88,036,613 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 3,084,371.759 16.01 49,380,792 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,781,797.316 15.88 60,054,941 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,067,107.577 15.81 16,870,971 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 844,739.953 15.74 13,296,207 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,651,809.596 15.68 72,940,374 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 911,394.113 15.61 14,226,862 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,356,960.176 15.55 36,650,731 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,751,560.359 15.42 42,429,061 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,307.595 15.35 20,072 Access - Annual Ratchet (post April 2001) 59,471.114 15.22 905,150 Access - Max 5.5 (post April 2001), Landmark - Max 7 309,800.690 15.16 4,696,578 Access - 7% Solution (post April 2001) 60,108.378 15.10 907,637 Access - Max 7 (post April 2001) 106,351.561 14.97 1,592,083 ES II - Max 7 (post 2000), Generations - Max 7 511,368.087 15.48 7,915,978 Landmark - 7% Solution 130,301.492 15.29 1,992,310 Granite PrimElite - Standard 2,558.699 16.28 41,656 Granite PrimElite - Annual Ratchet 24,641.442 16.05 395,495 Access One 53.000 17.32 918 Value 90,271.530 16.76 1,512,951 ----------------- ---------------- 27,547,884.905 $435,524,465 ================= ================ 149
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MID-CAP GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,630.831 $9.77 $25,703 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,465.638 9.76 14,305 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 11,583.092 9.76 113,051 ES II - Max 7 (post 2000), Generations - Max 7 40,595.693 9.75 395,808 ----------------- --------------- 56,275.254 $548,867 ================= =============== GCG TRUST REAL ESTATE Currently payable annuity products: DVA 2,632.724 $29.64 $78,034 Contracts in accumulation period: DVA 80 14,372.816 30.48 438,083 DVA 294,492.593 29.64 8,728,760 DVA Series 100 6,317.688 28.21 178,222 DVA Plus - Standard (pre February 2000) 99,481.407 28.65 2,850,142 DVA Plus - Standard (post January 2000 & post 2000) 71,426.257 28.42 2,029,934 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,167,126.261 28.06 32,749,563 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 947,489.751 27.82 26,359,165 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 784,788.188 27.47 21,558,132 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 149,145.345 27.24 4,062,719 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 242,782.471 27.05 6,567,266 150
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST REAL ESTATE (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 977,817.612 $26.86 $26,264,181 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 271,008.977 26.67 7,227,809 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 639,503.760 26.48 16,934,060 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 768,502.886 26.11 20,065,610 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 695.890 25.92 18,037 Access - Annual Ratchet (post April 2001) 28,955.148 25.56 740,094 Access - Max 5.5 (post April 2001), Landmark - Max 7 77,757.492 25.38 1,973,485 Access - 7% Solution (post April 2001) 17,947.437 25.20 452,275 Access - Max 7 (post April 2001) 48,340.758 24.84 1,200,784 ES II - Max 7 (post 2000), Generations - Max 7 222,334.059 26.29 5,845,162 Landmark - 7% Solution 33,005.212 25.74 849,554 Access One 74.000 31.80 2,353 Value 15,433.848 30.06 463,941 ----------------- ---------------- 6,881,432.580 $187,637,365 ================= ================ GCG TRUST REAL ESTATE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,247.451 $9.61 $117,698 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,275.170 9.60 21,842 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,555.238 9.60 91,730 ES II - Max 7 (post 2000), Generations - Max 7 4,638.384 9.60 44,528 ----------------- ---------------- 28,716.243 $275,798 ================= ================ GCG TRUST RESEARCH Contracts in accumulation period: DVA 80 3,627.670 $15.91 $57,716 DVA 162,961.471 15.64 2,548,717 DVA Series 100 13,646.311 15.19 207,287 DVA Plus - Standard (pre February 2000) 440,910.844 15.32 6,754,754 DVA Plus - Standard (post January 2000 & post 2000) 171,543.554 15.26 2,617,755 151
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST RESEARCH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,913,309.306 $15.14 $89,527,503 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,475,752.225 15.07 37,309,586 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,975,285.355 14.95 74,380,516 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 838,520.000 14.88 12,477,178 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 921,348.789 14.82 13,654,389 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 6,171,512.045 14.76 91,091,518 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 792,215.685 14.70 11,645,571 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,132,959.006 14.64 31,226,520 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,110,644.796 14.51 30,625,456 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,027.237 14.45 14,844 Access - Annual Ratchet (post April 2001) 52,293.527 14.33 749,366 Access - Max 5.5 (post April 2001), Landmark - Max 7 215,282.859 14.27 3,072,086 Access - 7% Solution (post April 2001) 58,224.072 14.21 827,364 Access - Max 7 (post April 2001) 87,204.903 14.09 1,228,717 ES II - Max 7 (post 2000), Generations - Max 7 377,645.580 14.58 5,506,073 Landmark - 7% Solution 131,250.673 14.39 1,888,697 Granite PrimElite - Standard 2,602.459 15.32 39,870 Granite PrimElite - Annual Ratchet 29,978.465 15.14 453,874 Value 78,969.334 15.78 1,246,136 VA Option I 12,098.531 15.71 190,068 VA Option II 8,360.616 15.32 128,085 152
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST RESEARCH (CONTINUED) VA Option III 6,455.986 $15.13 $97,679 VA Bonus Option I 45,514.654 15.07 685,906 VA Bonus Option II 25,547.390 14.69 375,291 VA Bonus Option III 15,015.861 14.51 217,880 SmartDesign Advantage Option I 3,982.031 14.16 56,386 SmartDesign Advantage Option II 743.776 13.93 10,361 SmartDesign Advantage Option III 8,243.250 13.75 113,345 ----------------- ---------------- 28,284,678.261 $421,026,494 ================= ================ GCG TRUST RESEARCH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,274.243 $9.72 $31,826 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,960.691 9.71 28,748 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 5,729.442 9.71 55,633 ES II - Max 7 (post 2000), Generations - Max 7 21,658.874 9.70 210,091 ----------------- ---------------- 33,623.250 $326,298 ================= ================ GCG TRUST SPECIAL SITUATIONS Contracts in accumulation period: DVA 2,870.905 $6.13 $17,599 DVA Plus - Standard (pre February 2000) 6,734.067 6.10 41,078 DVA Plus - Standard (post January 2000 & post 2000) 65,939.323 6.09 401,570 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 464,522.134 6.08 2,824,295 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 610,059.047 6.07 3,703,058 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 162,394.418 6.06 984,110 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 123,276.130 6.05 745,821 153
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST SPECIAL SITUATIONS (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 246,923.594 $6.04 $1,491,419 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 327,689.607 6.04 1,979,245 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 292,321.465 6.03 1,762,698 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 401,444.438 6.02 2,416,696 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 520,898.404 6.01 3,130,599 Access - Annual Ratchet (post April 2001) 13,630.437 5.99 81,646 Access - Max 5.5 (post April 2001), Landmark - Max 7 96,354.913 5.98 576,202 Access - 7% Solution (post April 2001) 7,583.310 5.97 45,272 Access - Max 7 (post April 2001) 19,023.473 5.96 113,380 ES II - Max 7 (post 2000), Generations - Max 7 170,016.196 6.01 1,021,797 Landmark - 7% Solution 70,820.281 5.99 424,213 Value 6,471.533 6.15 39,800 ----------------- --------------- 3,608,973.675 $21,800,498 ================= =============== GCG TRUST SPECIAL SITUATIONS ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,145.777 $9.63 $20,664 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 3,627.415 9.62 34,896 ----------------- --------------- 5,773.192 $55,560 ================= =============== GCG TRUST STRATEGIC EQUITY Currently payable annuity products: DVA 16,012.956 $10.19 $163,172 Contracts in accumulation period: DVA 80 11,734.623 10.34 121,336 DVA 134,063.017 10.19 1,366,102 DVA Series 100 6,136.461 9.93 60,935 154
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST STRATEGIC EQUITY (CONTINUED) DVA Plus - Standard (pre February 2000) 275,485.690 $10.01 $2,757,612 DVA Plus - Standard (post January 2000 & post 2000) 126,033.889 9.97 1,256,558 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,906,118.345 9.91 28,799,633 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,870,964.685 9.86 18,447,712 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,999,021.919 9.80 19,590,415 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 748,019.466 9.75 7,293,190 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 335,993.421 9.71 3,262,496 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,578,304.124 9.68 24,957,984 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 398,841.111 9.64 3,844,828 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,196,567.061 9.61 11,499,009 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,357,779.373 9.54 12,953,215 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 430.560 9.50 4,090 Access - Annual Ratchet (post April 2001) 22,031.797 9.43 207,760 Access - Max 5.5 (post April 2001), Landmark - Max 7 63,802.164 9.40 599,740 Access - 7% Solution (post April 2001) 20,218.871 9.36 189,249 Access - Max 7 (post April 2001) 28,983.967 9.29 269,261 ES II - Max 7 (post 2000), Generations - Max 7 179,597.574 9.57 1,718,749 Landmark - 7% Solution 24,833.591 9.47 235,174 Value 23,302.730 10.26 239,086 ---------------- ---------------- 14,324,277.395 $139,837,306 ================ ================ 155
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST STRATEGIC EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,899.546 $9.65 $47,281 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,511.374 9.64 14,570 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,318.982 9.63 12,702 ES II - Max 7 (post 2000), Generations - Max 7 314.201 9.63 3,026 ---------------- ---------------- 8,044.103 $77,579 ================ ================ GCG TRUST TOTAL RETURN Contracts in accumulation period: DVA 80 16,067.433 $20.21 $324,723 DVA 206,393.471 19.88 4,103,102 DVA Series 100 3,973.499 19.31 76,728 DVA Plus - Standard (pre February 2000) 631,444.743 19.47 12,294,229 DVA Plus - Standard (post January 2000 & post 2000) 447,612.150 19.39 8,679,200 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 9,138,044.633 19.23 175,724,598 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,962,122.568 19.15 95,024,647 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 5,740,869.851 18.99 109,019,118 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 859,681.681 18.91 16,256,581 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,672,476.623 18.83 31,492,735 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 8,722,390.414 18.75 163,544,820 156
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST TOTAL RETURN (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,806,440.987 $18.68 $33,744,318 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,921,172.749 18.60 72,933,813 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 4,012,552.154 18.44 73,991,462 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,957.847 18.37 366,626 Access - Annual Ratchet (post April 2001) 108,560.173 18.21 1,976,881 Access - Max 5.5 (post April 2001), Landmark - Max 7 687,305.380 18.14 12,467,720 Access - 7% Solution (post April 2001) 123,964.300 18.06 2,238,795 Access - Max 7 (post April 2001) 192,906.695 17.91 3,454,959 ES II - Max 7 (post 2000), Generations - Max 7 865,414.745 18.52 16,027,481 Landmark - 7% Solution 311,823.735 18.29 5,703,256 Granite PrimElite - Standard 3,436.014 19.47 66,899 Granite PrimElite - Annual Ratchet 24,501.483 19.23 471,164 Access One 243.000 20.72 5,035 Value 124,189.496 20.05 2,489,999 VA Option I 100,966.989 19.96 2,015,301 VA Option II 58,151.220 19.47 1,132,204 VA Option III 20,971.311 19.23 403,278 VA Bonus Option I 129,465.341 19.15 2,479,261 VA Bonus Option II 136,882.391 18.67 2,555,594 VA Bonus Option III 58,555.225 18.44 1,079,758 SmartDesign Advantage Option I 19,792.659 18.00 356,268 SmartDesign Advantage Option II 7,434.941 17.70 131,598 SmartDesign Advantage Option III 13,605.955 17.48 237,832 Rollover Choice Option I 24,144.989 20.30 490,143 Rollover Choice Option II 414.379 19.96 8,271 ---------------- ----------------- 45,173,931.224 $853,368,397 ================ ================= GCG TRUST TOTAL RETURN ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 14,499.387 $10.04 $145,574 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 19,781.090 10.04 198,602 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 42,679.276 10.03 428,073 ES II - Max 7 (post 2000), Generations - Max 7 18,244.240 10.03 182,990 ---------------- ----------------- 95,203.993 $955,239 ================ ================= 157
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VALUE EQUITY Currently payable annuity products: DVA 80 196.196 $15.72 $3,084 DVA 625.357 15.47 9,674 Contracts in accumulation period: DVA 80 14,757.269 15.72 231,984 DVA 255,627.944 15.47 3,954,565 DVA Series 100 10,613.579 15.04 159,628 DVA Plus - Standard (pre February 2000) 263,973.651 15.18 4,007,120 DVA Plus - Standard (post January 2000 & post 2000) 87,727.524 15.10 1,324,686 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,314,069.828 15.00 34,711,047 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,201,589.403 14.92 17,927,714 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,133,007.485 14.82 31,611,171 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 259,140.361 14.74 3,819,729 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 318,879.888 14.68 4,681,157 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,165,514.354 14.61 31,638,165 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 307,027.413 14.56 4,470,319 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 923,702.340 14.50 13,393,684 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 983,702.944 14.38 14,145,648 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,517.456 14.32 79,010 Access - Annual Ratchet (post April 2001) 20,452.084 14.21 290,624 Access - Max 5.5 (post April 2001), Landmark - Max 7 131,098.668 14.15 1,855,046 158
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VALUE EQUITY (CONTINUED) Access - 7% Solution (post April 2001) 19,840.272 $14.09 $279,549 Access - Max 7 (post April 2001) 48,682.166 13.98 680,577 ES II - Max 7 (post 2000), Generations - Max 7 160,511.984 14.44 2,317,793 Landmark - 7% Solution 56,537.908 14.27 806,796 Value 12,716.963 15.59 198,257 VA Option I 5,697.794 15.53 88,487 VA Option II 6,030.913 15.16 91,429 VA Option III 701.727 14.97 10,505 VA Bonus Option I 13,323.533 14.91 198,654 VA Bonus Option II 7,148.366 14.56 104,080 VA Bonus Option III 7,163.305 14.38 103,008 SmartDesign Advantage Option I 2,513.045 14.05 35,308 SmartDesign Advantage Option II 1,441.150 13.82 19,917 SmartDesign Advantage Option III 372.008 13.65 5,078 ----------------- ---------------- 11,739,904.878 $173,253,493 ================= ================ GCG TRUST VALUE EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,330.312 $9.63 $41,701 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 4,121.280 9.62 39,647 ES II - Max 7 (post 2000), Generations - Max 7 2,676.572 9.61 25,722 ----------------- ---------------- 11,128.164 $107,070 ================= ================ GCG TRUST VAN KAMPEN GROWTH AND INCOME Currently payable annuity products: DVA 80 487.525 $19.21 $9,365 DVA 6,153.091 18.86 116,047 Contracts in accumulation period: DVA 80 12,569.800 19.21 241,466 DVA 1,174,899.843 18.86 22,158,611 DVA Series 100 41,044.682 18.25 749,065 DVA Plus - Standard (pre February 2000) 802,103.676 18.45 14,798,813 DVA Plus - Standard (post January 2000 & post 2000) 212,478.908 18.34 3,896,863 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,183,620.626 18.19 112,480,059 159
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VAN KAMPEN GROWTH AND INCOME (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,951,606.925 $18.08 $35,285,053 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 6,933,408.861 17.94 124,385,355 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 478,279.632 17.83 8,527,726 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 835,107.303 17.75 14,823,155 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 7,350,027.957 17.67 129,874,994 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 616,372.946 17.58 10,835,836 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,678,850.979 17.50 29,379,892 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,920,555.207 17.34 33,302,427 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 834.783 17.26 14,408 Access - Annual Ratchet (post April 2001) 40,928.330 17.09 699,465 Access - Max 5.5 (post April 2001), Landmark - Max 7 180,352.195 17.01 3,067,791 Access - 7% Solution (post April 2001) 38,925.362 16.93 659,006 Access - Max 7 (post April 2001) 69,527.951 16.77 1,165,984 ES II - Max 7 (post 2000), Generations - Max 7 274,359.681 17.42 4,779,346 Landmark - 7% Solution 134,276.152 17.17 2,305,522 Access One 48.000 19.76 948 Value 55,540.097 19.04 1,057,483 ----------------- ---------------- 30,992,360.512 $554,614,680 ================= ================ 160
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VAN KAMPEN GROWTH AND INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 42,614.234 $9.79 $417,193 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,609.802 9.79 15,760 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 10,565.924 9.78 103,335 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 20,751.329 9.78 202,948 ES II - Max 7 (post 2000), Generations - Max 7 25,611.638 9.78 250,482 ----------------- --------------- 101,152.927 $989,718 ================= =============== AIM V.I. DENT DEMOGRAPHIC TRENDS Contracts in accumulation period: DVA Plus - Standard (pre February 2000) 1,885.585 $7.36 $13,878 DVA Plus - Standard (post January 2000 & post 2000) 25,365.346 7.35 186,435 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 218,093.842 7.34 1,600,809 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 226,139.250 7.34 1,659,862 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 43,073.626 7.33 315,730 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 25,792.732 7.32 188,803 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 95,004.921 7.32 695,436 161
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AIM V.I. DENT DEMOGRAPHIC TRENDS (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 94,533.265 $7.32 $691,983 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 76,298.756 7.31 557,744 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 144,579.250 7.31 1,056,874 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 237,697.824 7.30 1,735,194 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,380.753 7.29 17,356 Access - Annual Ratchet (post April 2001) 36,436.265 7.28 265,256 Access - Max 5.5 (post April 2001), Landmark - Max 7 11,617.804 7.28 84,578 Access - 7% Solution (post April 2001) 8,919.249 7.27 64,843 Access - Max 7 (post April 2001) 109,981.346 7.27 799,564 ES II - Max 7 (post 2000), Generations - Max 7 132,570.005 7.30 967,761 Landmark - 7% Solution 20,619.001 7.29 150,313 VA Option I 2,751.497 7.38 20,306 VA Option II 1,639.386 7.36 12,066 VA Bonus Option I 10,729.473 7.34 78,754 VA Bonus Option II 4,182.723 7.31 30,576 VA Bonus Option III 7,735.578 7.30 56,470 SmartDesign Advantage Option I 9,033.164 7.27 65,671 SmartDesign Advantage Option II 2,133.782 7.25 15,470 SmartDesign Advantage Option III 934.452 7.24 6,765 ----------------- -------------- 1,550,128.875 $11,338,497 ================= ============== AIM V.I. GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,399.031 $7.00 $9,793 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 6,965.519 6.98 48,619 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 984.776 6.97 6,864 VA Option I 26,221.846 7.06 185,126 VA Option II 20,010.222 7.03 140,672 VA Option III 1,160.532 7.02 8,147 VA Bonus Option I 15,898.460 7.02 111,607 VA Bonus Option II 34,050.283 6.99 238,011 162
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH (CONTINUED) VA Bonus Option III 797.868 $6.98 $5,569 SmartDesign Advantage Option I 9,991.085 6.95 69,438 SmartDesign Advantage Option II 3,408.679 6.93 23,622 SmartDesign Advantage Option III 148.669 6.92 1,029 ----------------- -------------- 121,036.970 $848,497 ================= ============== AIM V.I. CAPITAL APPRECIATION Contracts in accumulation period: Rollover Choice Option I 3,701.273 $7.40 $27,389 ----------------- -------------- 3,701.273 $27,389 ================= ============== AIM V.I. CORE EQUITY Contracts in accumulation period: Rollover Choice Option I 4,960.602 $8.26 $40,975 ----------------- -------------- 4,960.602 $40,975 ================= ============== AIM V.I. PREMIER EQUITY Contracts in accumulation period: Rollover Choice Option I 6,113.296 $6.84 $41,815 Rollover Choice Option II 5,600.805 6.82 38,197 ----------------- -------------- 11,714.101 $80,012 ================= ============== ALLIANCE BERNSTEIN VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 5,317.948 $8.58 $45,628 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 8,584.788 8.55 73,400 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,498.975 8.53 46,906 VA Option I 53,589.426 8.66 464,084 VA Option II 41,567.535 8.62 358,312 VA Option III 16,435.620 8.60 141,346 VA Bonus Option I 69,917.676 8.60 601,292 VA Bonus Option II 71,475.693 8.56 611,832 VA Bonus Option III 17,783.469 8.54 151,871 SmartDesign Advantage Option I 12,252.266 8.50 104,144 SmartDesign Advantage Option II 6,907.718 8.48 58,577 SmartDesign Advantage Option III 6,158.098 8.46 52,098 ----------------- -------------- 315,489.212 $2,709,490 ================= ============== 163
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 11,011.021 $7.33 $80,711 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 5,073.118 7.31 37,084 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,048.890 7.29 14,936 VA Option I 111,625.699 7.40 826,030 VA Option II 107,568.702 7.37 792,781 VA Option III 37,970.848 7.35 279,086 VA Bonus Option I 187,892.497 7.35 1,381,010 VA Bonus Option II 110,199.338 7.32 806,659 VA Bonus Option III 49,729.010 7.30 363,022 SmartDesign Advantage Option I 7,581.492 7.27 55,117 SmartDesign Advantage Option II 11,489.341 7.25 83,298 SmartDesign Advantage Option III 1,624.503 7.23 11,745 ---------------- ------------- 643,814.459 $4,731,479 ================ ============= ALLIANCE PREMIER GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 18,699.611 $6.50 $121,547 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 4,096.233 6.48 26,544 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 242.415 6.47 1,568 VA Option I 41,282.713 6.56 270,815 VA Option II 87,298.365 6.54 570,931 VA Option III 21,482.259 6.52 140,064 VA Bonus Option I 48,076.653 6.52 313,460 VA Bonus Option II 63,675.099 6.49 413,251 VA Bonus Option III 13,118.794 6.47 84,879 SmartDesign Advantage Option I 10,347.731 6.44 66,639 SmartDesign Advantage Option II 10,463.152 6.43 67,278 SmartDesign Advantage Option III 2,733.252 6.41 17,520 ---------------- ------------- 321,516.277 $2,094,496 ================ ============= 164
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH Contracts in accumulation period: DVA 6,391.315 $6.41 $40,968 DVA Plus - Standard (pre February 2000) 9,787.230 6.39 62,540 DVA Plus - Standard (post January 2000 & post 2000) 14,326.050 6.38 91,400 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 523,176.282 6.37 3,332,633 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 534,217.197 6.37 3,402,964 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 219,814.733 6.36 1,398,022 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 69,147.668 6.35 439,088 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 202,568.992 6.35 1,286,313 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 256,320.522 6.34 1,625,072 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 138,234.806 6.34 876,409 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 244,585.622 6.33 1,548,227 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 473,546.962 6.33 2,997,552 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 7,612.918 6.32 48,114 Access - Annual Ratchet (post April 2001) 4,842.214 6.31 30,554 Access - Max 5.5 (post April 2001), Landmark - Max 7 107,164.703 6.31 676,209 Access - 7% Solution (post April 2001) 72,400.853 6.30 456,125 Access - Max 7 (post April 2001) 13,477.384 6.29 84,773 ES II - Max 7 (post 2000), Generations - Max 7 147,714.687 6.33 935,034 Landmark - 7% Solution 72,837.366 6.32 460,332 Value 16,144.991 6.42 103,651 VA Option I 117,835.906 6.42 756,507 165
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH (CONTINUED) VA Option II 41,737.349 $6.39 $266,702 VA Option III 15,098.206 6.37 96,176 VA Bonus Option I 156,999.146 6.37 1,000,085 VA Bonus Option II 74,614.341 6.34 473,055 VA Bonus Option III 53,634.764 6.32 338,972 SmartDesign Advantage Option I 14,612.297 6.30 92,057 SmartDesign Advantage Option II 8,816.847 6.28 55,370 SmartDesign Advantage Option III 2,814.395 6.26 17,618 Rollover Choice Option I 30,532.901 6.43 196,327 Rollover Choice Option II 3,701.211 6.42 23,762 Rollover Choice Option III 607.274 6.40 3,887 ---------------- --------------- 3,655,317.132 $23,216,498 ================ =============== FIDELITY(R) VIP EQUITY-INCOME Contracts in accumulation period: DVA 4,246.161 $7.88 $33,460 DVA Series 100 525.907 7.84 4,123 DVA Plus - Standard (pre February 2000) 5,651.143 7.85 44,361 DVA Plus - Standard (post January 2000 & post 2000) 37,470.212 7.85 294,141 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 478,394.663 7.83 3,745,830 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 321,871.933 7.83 2,520,257 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 185,664.648 7.82 1,451,898 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 70,101.597 7.81 547,493 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 177,882.505 7.80 1,387,484 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 338,456.229 7.80 2,639,959 166
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP EQUITY-INCOME (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 139,297.067 $7.79 $1,085,124 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 178,751.984 7.79 1,392,478 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 250,947.059 7.78 1,952,368 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 9,459.360 7.77 73,499 Access - Annual Ratchet (post April 2001) 18,935.799 7.76 146,942 Access - Max 5.5 (post April 2001), Landmark - Max 7 54,903.954 7.75 425,506 Access - 7% Solution (post April 2001) 46,318.279 7.75 358,967 Access - Max 7 (post April 2001) 7,498.006 7.74 58,035 ES II - Max 7 (post 2000), Generations - Max 7 70,753.511 7.78 550,462 Landmark - 7% Solution 19,711.625 7.76 152,962 Value 3,346.119 7.89 26,401 VA Option I 137,710.507 7.89 1,086,536 VA Option II 67,873.888 7.85 532,810 VA Option III 26,357.099 7.83 206,376 VA Bonus Option I 178,215.219 7.83 1,395,425 VA Bonus Option II 140,603.473 7.79 1,095,301 VA Bonus Option III 24,656.472 7.78 191,827 SmartDesign Advantage Option I 15,527.727 7.74 120,185 SmartDesign Advantage Option II 10,722.407 7.72 82,777 SmartDesign Advantage Option III 7,831.391 7.70 60,302 Rollover Choice Option I 21,033.949 7.91 166,379 Rollover Choice Option II 2,414.475 7.89 19,050 Rollover Choice Option III 748.840 7.87 5,893 ---------------- --------------- 3,053,883.208 $23,854,611 ================ =============== FIDELITY(R) VIP CONTRAFUND(R) Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 10,193.484 $8.63 $87,970 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 8,870.371 8.60 76,285 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,392.267 8.58 166,386 VA Option I 86,387.123 8.71 752,432 VA Option II 77,060.412 8.67 668,114 VA Option III 17,280.541 8.65 149,477 VA Bonus Option I 141,706.160 8.64 1,224,341 VA Bonus Option II 80,927.058 8.61 696,782 167
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) (CONTINUED) VA Bonus Option III 26,329.715 $8.59 $226,172 SmartDesign Advantage Option I 5,170.226 8.55 44,205 SmartDesign Advantage Option II 11,635.946 8.52 99,138 SmartDesign Advantage Option III 5,478.254 8.50 46,565 Rollover Choice Option I 18,394.766 8.73 160,586 Rollover Choice Option II 4,124.316 8.71 35,923 Rollover Choice Option III 537.961 8.69 4,675 --------------- -------------- 513,488.600 $4,439,051 =============== ============== FIDELITY(R) VIP OVERSEAS Contracts in accumulation period: Rollover Choice Option I 1,171.175 $7.89 $9,241 --------------- -------------- 1,171.175 $9,241 =============== ============== FRANKLIN SMALL CAP VALUE SECURITIES Contracts in accumulation period: Rollover Choice Option I 1,802.105 $8.99 $16,201 Rollover Choice Option II 137.390 8.97 1,232 --------------- -------------- 1,939.495 $17,433 =============== ============== GREENWICH APPRECIATION Contracts in accumulation period: Granite PrimElite - Standard 410.469 $14.02 $5,755 Granite PrimElite - Annual Ratchet 42,037.067 13.88 583,474 --------------- -------------- 42,447.536 $589,229 =============== ============== GALAXY VIP ASSET ALLOCATION Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 14,470.820 $8.15 $117,937 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 41,973.587 8.14 341,665 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,092.860 8.11 33,193 168
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP ASSET ALLOCATION (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 7,686.299 $8.10 $62,259 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,094.826 8.07 24,975 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 6,392.631 8.05 51,461 ---------------- --------------- 77,711.023 $631,490 ================ =============== GALAXY VIP EQUITY Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,146.836 $6.57 $40,385 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 41,997.580 6.56 275,504 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 9,438.274 6.54 61,726 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 2,533.499 6.53 16,544 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,842.961 6.50 18,479 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 9,491.052 6.48 61,502 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,067.330 6.46 13,355 ---------------- --------------- 74,517.532 $487,495 ================ =============== 169
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,973.536 $7.56 $37,600 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 6,935.812 7.55 52,365 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 941.925 7.51 7,074 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,055.178 7.49 15,393 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 778.183 7.46 5,805 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 520.260 7.44 3,871 ---------------- --------------- 16,204.894 $122,108 ================ =============== GALAXY VIP HIGH QUALITY BOND Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,333.820 $12.74 $42,473 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,441.177 12.72 31,052 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,264.887 12.65 16,001 170
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP HIGH QUALITY BOND (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 261.886 $12.61 $3,302 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,995.152 12.57 37,649 ---------------- --------------- 10,296.922 $130,477 ================ =============== GALAXY VIP SMALL COMPANY GROWTH Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,744.000 $8.69 $15,155 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,318.134 8.67 11,428 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,508.000 8.65 13,044 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 506.975 8.63 4,375 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,382.134 8.57 11,845 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 98.104 8.55 839 ---------------- --------------- 6,557.347 $56,686 ================ =============== ING GET FUND - SERIES N Contracts in accumulation period: VA Option I 390,804.171 $10.10 $3,947,122 VA Option II 213,031.411 10.05 2,140,966 VA Option III 117,577.827 10.03 1,179,306 VA Bonus Option I 972,908.364 10.02 9,748,542 VA Bonus Option II 682,003.499 9.98 6,806,395 VA Bonus Option III 485,961.261 9.96 4,840,174 ---------------- --------------- 2,862,286.533 $28,662,505 ================ =============== 171
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES P Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 67,854.231 $9.93 $673,793 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 10,497.941 9.91 104,035 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,684.163 9.89 36,436 VA Option I 1,705,435.036 10.02 17,088,459 VA Option II 972,549.749 9.98 9,706,046 VA Option III 401,541.204 9.96 3,999,350 VA Bonus Option I 5,315,976.104 9.95 52,893,962 VA Bonus Option II 3,474,689.314 9.91 34,434,171 VA Bonus Option III 2,205,103.224 9.89 21,808,471 SmartDesign Advantage Option I 108,591.586 9.86 1,070,713 SmartDesign Advantage Option II 35,661.831 9.83 350,556 SmartDesign Advantage Option III 26,860.854 9.81 263,505 ----------------- ---------------- 14,328,445.237 $142,429,497 ================= ================ ING GET FUND - SERIES Q Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 562,383.289 $10.03 $5,640,704 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 284,409.580 10.01 2,846,940 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 83,909.189 9.99 838,253 VA Option I 1,999,208.942 10.10 20,192,010 VA Option II 1,409,733.467 10.07 14,196,016 VA Option III 491,168.651 10.05 4,936,245 VA Bonus Option I 4,783,644.544 10.04 48,027,791 VA Bonus Option II 3,845,316.589 10.01 38,491,619 VA Bonus Option III 1,887,729.911 10.00 18,877,299 SmartDesign Advantage Option I 1,028,249.267 9.97 10,251,645 SmartDesign Advantage Option II 217,938.548 9.94 2,166,309 SmartDesign Advantage Option III 253,781.731 9.93 2,520,053 Rollover Choice Option I 2,541.246 10.12 25,717 Rollover Choice Option II 4,941.125 10.10 49,905 ----------------- ---------------- 16,854,956.079 $169,060,506 ================= ================ 172
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES R Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,074,925.572 $10.09 $10,845,999 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 257,403.873 10.07 2,592,057 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 115,167.896 10.06 1,158,589 VA Option I 2,104,589.356 10.14 21,340,536 VA Option II 988,297.070 10.12 10,001,566 VA Option III 506,820.458 10.10 5,118,887 VA Bonus Option I 4,259,757.948 10.10 43,023,555 VA Bonus Option II 3,262,756.657 10.08 32,888,587 VA Bonus Option III 1,891,866.395 10.06 19,032,176 SmartDesign Advantage Option I 1,141,597.398 10.04 11,461,638 SmartDesign Advantage Option II 716,661.831 10.02 7,180,952 SmartDesign Advantage Option III 566,849.087 10.01 5,674,159 Rollover Choice Option I 19,740.797 10.16 200,566 Rollover Choice Option II 4,164.678 10.14 42,230 ----------------- ---------------- 16,910,599.016 $170,561,497 ================= ================ ING GET FUND - SERIES S Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,272,002.001 $10.03 $12,758,180 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 714,136.233 10.02 7,155,645 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 253,670.431 10.01 2,539,241 VA Option I 2,645,718.489 10.07 26,642,385 VA Option II 1,006,108.528 10.05 10,111,391 VA Option III 531,316.937 10.04 5,334,422 VA Bonus Option I 5,903,407.361 10.04 59,270,210 VA Bonus Option II 3,536,752.857 10.02 35,438,264 VA Bonus Option III 2,276,351.650 10.01 22,786,280 SmartDesign Advantage Option I 1,993,960.945 10.00 19,939,609 SmartDesign Advantage Option II 1,229,819.186 9.99 12,285,894 SmartDesign Advantage Option III 467,734.302 9.98 4,667,988 Rollover Choice Option I 31,718.983 10.08 319,727 Rollover Choice Option II 4,790.846 10.07 48,244 ----------------- ---------------- 21,867,488.749 $219,297,480 ================= ================ 173
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES T Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 50,400.668 $10.08 $508,039 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,558,991.778 10.07 15,699,047 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 19,504.482 10.07 196,410 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 171,909.156 10.06 1,729,406 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 508,430.836 10.06 5,114,814 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 402,293.548 10.06 4,047,073 ES II - Max 7 (post 2000), Generations - Max 7 95,839.486 10.06 964,145 VA Option I 2,265,324.445 10.09 22,857,124 VA Option II 986,184.393 10.08 9,940,739 VA Option III 395,886.131 10.08 3,990,532 VA Bonus Option I 6,903,091.797 10.07 69,514,134 VA Bonus Option II 3,462,362.180 10.06 34,831,364 VA Bonus Option III 2,223,311.868 10.06 22,366,517 SmartDesign Advantage Option I 2,313,192.394 10.05 23,247,584 SmartDesign Advantage Option II 1,164,309.907 10.04 11,689,671 SmartDesign Advantage Option III 1,014,350.218 10.04 10,184,076 Rollover Choice Option I 105,907.907 10.10 1,069,670 Rollover Choice Option II 1,397.340 10.09 14,099 ----------------- ---------------- 23,642,688.533 $237,964,444 ================= ================ ING GET FUND - SERIES U Contracts in accumulation period: Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,187.025 $10.00 $11,870 VA Option I 1,571.485 10.00 15,715 VA Option II 6,507.823 10.00 65,078 VA Option III 1,409.047 10.00 14,090 VA Bonus Option I 36,166.923 10.00 361,669 VA Bonus Option II 8,169.053 10.00 81,691 SmartDesign Advantage Option I 3,233.024 9.99 32,298 Rollover Choice Option I 46,529.254 10.00 465,293 ----------------- ---------------- 104,773.634 $1,047,704 ================= ================ 174
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING ALGER GROWTH Contracts in accumulation period: Rollover Choice Option I 5,955.720 $6.56 $39,070 ----------------- --------------- 5,955.720 $39,070 ================= =============== ING AMERICAN CENTURY SMALL CAP VALUE Contracts in accumulation period: Rollover Choice Option II 215.415 $8.10 $1,745 ----------------- --------------- 215.415 $1,745 ================= =============== ING J.P. MORGAN MID CAP VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,313.035 $9.15 $12,014 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 105.865 9.14 968 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 279.120 9.13 2,548 VA Option I 7,703.109 9.19 70,792 VA Option II 325.073 9.17 2,981 VA Option III 871.507 9.16 7,983 VA Bonus Option I 12,516.020 9.16 114,647 VA Bonus Option II 6,147.437 9.14 56,188 VA Bonus Option III 2,029.335 9.13 18,528 SmartDesign Advantage Option I 525.395 9.11 4,786 SmartDesign Advantage Option II 500.283 9.10 4,553 SmartDesign Advantage Option III 525.629 9.09 4,778 ----------------- --------------- 32,841.808 $300,766 ================= =============== ING MFS(R) CAPITAL OPPORTUNITIES (INITIAL CLASS) Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 9,202.920 $6.12 $56,322 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,495.904 6.10 9,125 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,820.488 6.08 41,469 VA Option I 24,402.739 6.18 150,809 VA Option II 24,352.603 6.15 149,769 VA Option III 9,183.824 6.13 56,297 VA Bonus Option I 51,742.510 6.13 317,182 175
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING MFS(R) CAPITAL OPPORTUNITIES (INITIAL CLASS) (CONTINUED) VA Bonus Option II 45,652.230 $6.10 $278,479 VA Bonus Option III 27,827.914 6.09 169,472 SmartDesign Advantage Option I 7,426.711 6.06 45,006 SmartDesign Advantage Option II 949.187 6.04 5,733 --------------- -------------- 209,057.030 $1,279,663 =============== ============== ING MFS(R) CAPITAL OPPORTUNITIES (SERVICE CLASS) Contracts in accumulation period: Rollover Choice Option I 10,569.482 $6.85 $72,401 --------------- -------------- 10,569.482 $72,401 =============== ============== ING MFS(R) GLOBAL GROWTH Contracts in accumulation period: Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 110.304 $8.29 $914 VA Option I 1,482.246 8.34 12,362 VA Option II 1,343.372 8.32 11,177 VA Bonus Option I 4,797.670 8.31 39,869 VA Bonus Option II 295.240 8.29 2,448 VA Bonus Option III 192.981 8.28 1,598 SmartDesign Advantage Option I 595.582 8.27 4,925 Rollover Choice Option I 222.879 8.35 1,861 --------------- -------------- 9,040.274 $75,154 =============== ============== ING OPCAP BALANCED VALUE Contracts in accumulation period: Rollover Choice Option I 16,208.427 $7.80 $126,426 --------------- -------------- 16,208.427 $126,426 =============== ============== ING PIMCO TOTAL RETURN Contracts in accumulation period: Rollover Choice Option I 55,182.425 $10.75 $593,211 --------------- -------------- 55,182.425 $593,211 =============== ============== ING SALOMON BROS. CAPITAL Contracts in accumulation period: Rollover Choice Option I 1,231.608 $7.41 $9,126 --------------- -------------- 1,231.608 $9,126 =============== ============== ING SALOMON BROS. INVESTORS VALUE Contracts in accumulation period: Rollover Choice Option I 487.219 $7.61 $3,708 --------------- -------------- 487.219 $3,708 =============== ============== 176
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING SCUDDER INTERNATIONAL GROWTH Contracts in accumulation period: Rollover Choice Option I 534.407 $8.14 $4,350 Rollover Choice Option II 385.164 8.13 3,131 --------------- ---------------- 919.571 $7,481 =============== ================ ING T. ROWE PRICE GROWTH EQUITY Rollover Choice Option I 18,694.132 $7.52 $140,580 Rollover Choice Option II 390.902 7.51 2,936 --------------- ---------------- 19,085.034 $143,516 =============== ================ ING UBS TACTICAL ASSET ALLOCATION Contracts in accumulation period: Rollover Choice Option I 297.448 $7.54 $2,243 --------------- ---------------- 297.448 $2,243 =============== ================ ING VAN KAMPEN COMSTOCK Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 28,765.909 $8.30 $238,757 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,563.257 8.30 21,275 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,117.380 8.29 34,133 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 283.320 8.29 2,349 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 29,823.131 8.28 246,936 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,649.302 8.28 13,656 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,188.813 8.27 34,641 ES II - Max 7 (post 2000), Generations - Max 7 105,532.227 8.27 872,752 VA Option I 6,159.801 8.32 51,250 VA Option II 4,430.488 8.31 36,817 VA Option III 109.415 8.30 908 VA Bonus Option I 5,134.250 8.30 42,614 VA Bonus Option II 6,396.200 8.28 52,961 VA Bonus Option III 2,101.826 8.27 17,382 177
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN COMSTOCK (CONTINUED) SmartDesign Advantage Option I 1,514.971 $8.25 $12,499 SmartDesign Advantage Option II 2,191.557 8.24 18,058 Rollover Choice Option I 4,737.926 8.34 39,514 ----------------- --------------- 209,699.773 $1,736,502 ================= =============== ING VP WORLDWIDE GROWTH Contracts in accumulation period: DVA 5,517.312 $5.26 $29,021 DVA Plus - Standard (pre February 2000) 12,358.456 5.23 64,635 DVA Plus - Standard (post January 2000 & post 2000) 49,480.801 5.22 258,290 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 467,246.705 5.21 2,434,355 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 859,281.375 5.20 4,468,263 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 142,057.864 5.19 737,280 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 116,508.310 5.18 603,513 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 322,466.194 5.17 1,667,150 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 361,646.549 5.16 1,866,096 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 349,870.710 5.16 1,805,333 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 598,427.686 5.15 3,081,903 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,083,707.075 5.14 5,570,254 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,003.284 5.13 5,147 Access - Annual Ratchet (post April 2001) 39,020.638 5.12 199,786 178
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP WORLDWIDE GROWTH (CONTINUED) Access - Max 5.5 (post April 2001), Landmark - Max 7 138,853.238 $5.11 $709,540 Access - 7% Solution (post April 2001) 57,393.340 5.10 292,706 Access - Max 7 (post April 2001) 78,477.936 5.09 399,453 ES II - Max 7 (post 2000), Generations - Max 7 382,518.737 5.14 1,966,146 Landmark - 7% Solution 100,549.031 5.12 514,811 Value 31,341.713 5.28 165,484 VA Option I 13,906.179 5.27 73,286 VA Option II 22,034.369 5.23 115,240 VA Option III 3,808.449 5.21 19,842 VA Bonus Option I 25,910.251 5.20 134,733 VA Bonus Option II 20,896.200 5.16 107,824 VA Bonus Option III 6,582.348 5.14 33,833 SmartDesign Advantage Option I 5,942.421 5.10 30,306 SmartDesign Advantage Option II 819.595 5.07 4,155 SmartDesign Advantage Option III 1,408.659 5.05 7,114 ----------------- --------------- 5,299,035.425 $27,365,499 ================= =============== ING VP BOND Contracts in accumulation period: DVA 80 5,835.705 $10.69 $62,384 DVA 1,384.830 10.67 14,776 DVA Series 100 460.852 10.65 4,908 DVA Plus - Standard (pre February 2000) 13,699.520 10.65 145,900 DVA Plus - Standard (post January 2000 & post 2000) 65,448.385 10.65 697,025 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 719,278.721 10.64 7,653,126 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 665,314.190 10.64 7,078,943 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 290,354.137 10.63 3,086,464 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 48,128.304 10.63 511,604 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 88,274.683 10.63 938,360 179
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP BOND (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 707,083.140 $10.62 $7,509,223 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 218,866.859 10.62 2,324,366 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 616,916.853 10.62 6,551,657 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 456,890.838 10.61 4,847,612 Access - Annual Ratchet (post April 2001) 9,276.800 10.60 98,334 Access - Max 5.5 (post April 2001), Landmark - Max 7 20,543.142 10.59 217,552 Access - 7% Solution (post April 2001) 45,161.920 10.59 478,265 Access - Max 7 (post April 2001) 93,174.370 10.58 985,785 ES II - Max 7 (post 2000), Generations - Max 7 564,471.057 10.61 5,989,038 Landmark - 7% Solution 16,610.577 10.60 176,072 Value 21,077.526 10.68 225,108 ---------------- -------------- 4,668,252.409 $49,596,502 ================ ============== ING VP GROWTH Contracts in accumulation period: Rollover Choice Option I 6,569.234 $6.94 $45,590 ---------------- -------------- 6,569.234 $45,590 ================ ============== ING VP INDEX PLUS LARGECAP Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 12,557.733 $7.21 $90,541 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 6,179.958 7.19 44,434 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,963.889 7.18 28,461 VA Option I 141,983.350 7.28 1,033,639 VA Option II 46,368.062 7.25 336,168 VA Option III 34,433.300 7.24 249,297 VA Bonus Option I 224,198.353 7.23 1,620,954 VA Bonus Option II 35,518.020 7.20 255,730 VA Bonus Option III 26,792.477 7.18 192,370 SmartDesign Advantage Option I 10,195.872 7.15 72,900 SmartDesign Advantage Option II 8,441.439 7.13 60,187 180
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS LARGECAP (CONTINUED) SmartDesign Advantage Option III 8,987.585 $7.11 $63,902 Rollover Choice Option I 71,089.664 7.31 519,665 Rollover Choice Option II 2,369.346 7.28 17,249 Rollover Choice Option III 564.067 7.27 4,101 ---------------- -------------- 633,643.115 $4,589,598 ================ ============== ING VP INDEX PLUS MIDCAP Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 13,930.296 $8.53 $118,825 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 7,367.210 8.51 62,695 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,361.288 8.49 164,377 VA Option I 133,786.073 8.61 1,151,898 VA Option II 61,372.138 8.58 526,573 VA Option III 19,210.554 8.56 164,442 VA Bonus Option I 177,302.397 8.55 1,515,935 VA Bonus Option II 94,503.966 8.51 804,229 VA Bonus Option III 97,939.999 8.49 831,511 SmartDesign Advantage Option I 11,177.803 8.46 94,564 SmartDesign Advantage Option II 10,167.267 8.43 85,710 SmartDesign Advantage Option III 17,384.130 8.41 146,201 Rollover Choice Option I 22,538.459 8.64 194,732 Rollover Choice Option II 5,073.425 8.61 43,682 Rollover Choice Option III 480.800 8.59 4,130 ---------------- -------------- 691,595.805 $5,909,504 ================ ============== ING VP INDEX PLUS SMALLCAP Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 24,464.385 $8.59 $210,149 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,622.813 8.57 31,048 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,254.460 8.55 27,826 VA Option I 97,303.653 8.67 843,623 VA Option II 45,701.551 8.64 394,861 VA Option III 8,401.252 8.62 72,419 VA Bonus Option I 119,426.433 8.61 1,028,262 VA Bonus Option II 50,587.854 8.57 433,538 181
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS SMALLCAP (CONTINUED) VA Bonus Option III 69,820.561 $8.55 $596,966 SmartDesign Advantage Option I 5,086.437 8.52 43,336 SmartDesign Advantage Option II 9,017.544 8.49 76,559 SmartDesign Advantage Option III 9,049.582 8.47 76,650 Rollover Choice Option I 18,191.748 8.70 158,268 Rollover Choice Option II 1,382.428 8.68 11,999 ---------------- -------------- 465,310.701 $4,005,504 ================ ============== ING VP SMALL COMPANY Contracts in accumulation period: Rollover Choice Option I 16,504.399 $7.56 $124,773 Rollover Choice Option II 4,207.514 7.54 31,725 ---------------- -------------- 20,711.913 $156,498 ================ ============== ING VP VALUE OPPORTUNITY Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,312.844 $6.55 $8,599 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,588.561 6.53 10,373 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,346.537 6.52 15,299 VA Option I 31,204.909 6.62 206,576 VA Option II 13,742.756 6.59 90,565 VA Option III 4,227.538 6.57 27,775 VA Bonus Option I 32,953.774 6.57 216,506 VA Bonus Option II 28,741.641 6.54 187,970 VA Bonus Option III 7,083.223 6.52 46,183 SmartDesign Advantage Option I 17,731.744 6.49 115,079 SmartDesign Advantage Option II 1,235.020 6.47 7,991 SmartDesign Advantage Option III 14,687.082 6.46 94,879 Rollover Choice Option I 8,766.617 6.63 58,123 ---------------- -------------- 165,622.247 $1,085,918 ================ ============== ING VP CONVERTIBLE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,417.757 $9.61 $13,625 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 571.190 9.58 5,472 182
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP CONVERTIBLE (CONTINUED) Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,962.680 $9.56 $28,323 VA Option I 27,864.868 9.70 270,289 VA Option II 23,212.677 9.66 224,234 VA Bonus Option I 24,891.586 9.63 239,706 VA Bonus Option II 16,097.635 9.59 154,376 VA Bonus Option III 1,293.425 9.57 12,378 SmartDesign Advantage Option I 3,125.116 9.52 29,751 SmartDesign Advantage Option II 5,397.937 9.50 51,280 SmartDesign Advantage Option III 522.665 9.48 4,955 ----------------- -------------- 107,357.536 $1,034,389 ================= ============== ING VP GROWTH OPPORTUNITIES Contracts in accumulation period: DVA 508.000 $5.30 $2,692 DVA Plus - Standard (pre February 2000) 589.526 5.27 3,107 DVA Plus - Standard (post January 2000 & post 2000) 11,903.518 5.27 62,732 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 143,306.638 5.26 753,793 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 297,926.064 5.26 1,567,091 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 134,511.899 5.25 706,187 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 30,250.239 5.24 158,511 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 157,970.166 5.24 827,764 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 151,542.584 5.23 792,568 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 149,494.282 5.23 781,855 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 178,992.222 5.23 936,129 183
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP GROWTH OPPORTUNITIES (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 355,700.276 $5.22 $1,856,755 Access - Annual Ratchet (post April 2001) 4,918.441 5.20 25,576 Access - Max 5.5 (post April 2001), Landmark - Max 7 68,490.561 5.20 356,151 Access - 7% Solution (post April 2001) 11,587.039 5.19 60,137 Access - Max 7 (post April 2001) 49,552.666 5.19 257,178 ES II - Max 7 (post 2000), Generations - Max 7 109,759.285 5.22 572,943 Landmark - 7% Solution 34,246.496 5.21 178,424 Value 1,365.563 5.31 7,251 Rollover Choice Option I 2,754.175 5.32 14,652 ---------------- -------------- 1,895,369.640 $9,921,496 ================ ============== ING VP INTERNATIONAL VALUE Contracts in accumulation period: Rollover Choice Option I 4,649.081 $8.47 $39,378 Rollover Choice Option II 288.667 8.45 2,439 ---------------- -------------- 4,937.748 $41,817 ================ ============== ING VP LARGE COMPANY VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 6,796.009 $7.95 $54,028 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 888.555 7.93 7,046 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,895.920 7.91 22,907 VA Option I 31,277.430 8.03 251,158 VA Option II 18,070.271 7.99 144,381 VA Option III 14,141.043 7.98 112,846 VA Bonus Option I 26,066.797 7.97 207,752 VA Bonus Option II 10,660.289 7.93 84,536 VA Bonus Option III 4,544.920 7.92 35,996 SmartDesign Advantage Option I 3,927.934 7.88 30,952 SmartDesign Advantage Option II 80.251 7.86 631 SmartDesign Advantage Option III 727.650 7.84 5,705 ---------------- -------------- 120,077.069 $957,938 ================ ============== ING VP LARGECAP GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,324.788 $6.15 $26,597 184
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP LARGECAP GROWTH (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 148.376 $6.13 $910 VA Option I 17,334.479 6.21 107,647 VA Option II 31,441.028 6.18 194,306 VA Option III 7,410.080 6.17 45,720 VA Bonus Option I 41,753.715 6.16 257,203 VA Bonus Option II 42,851.444 6.14 263,108 VA Bonus Option III 11,187.257 6.12 68,466 SmartDesign Advantage Option I 4,073.044 6.10 24,846 SmartDesign Advantage Option II 1,059.501 6.08 6,442 SmartDesign Advantage Option III 1,693.678 6.06 10,264 ---------------- -------------- 163,277.390 $1,005,509 ================ ============== ING VP MAGNACAP Contracts in accumulation period: DVA 6,555.686 $7.15 $46,873 DVA Plus - Standard (pre February 2000) 6,549.431 7.12 46,632 DVA Plus - Standard (post January 2000 & post 2000) 10,551.443 7.11 75,021 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 211,733.236 7.10 1,503,306 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 307,643.277 7.10 2,184,267 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 20,061.852 7.08 142,038 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 17,210.413 7.08 121,850 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 153,013.266 7.07 1,081,804 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 125,575.174 7.07 887,816 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 102,496.200 7.06 723,623 185
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP MAGNACAP (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 190,988.256 $7.05 $1,346,467 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 295,511.233 7.04 2,080,399 Access - Annual Ratchet (post April 2001) 18,131.585 7.02 127,284 Access - Max 5.5 (post April 2001), Landmark - Max 7 41,228.581 7.02 289,425 Access - 7% Solution (post April 2001) 12,375.694 7.01 86,754 Access - Max 7 (post April 2001) 27,970.406 7.00 195,793 ES II - Max 7 (post 2000), Generations - Max 7 108,901.970 7.05 767,759 Landmark - 7% Solution 31,708.981 7.03 222,914 Value 4,070.367 7.16 29,144 VA Option I 20,708.864 7.16 148,275 VA Option II 284.124 7.12 2,023 VA Option III 630.457 7.10 4,476 VA Bonus Option I 19,500.998 7.10 138,457 VA Bonus Option II 6,930.236 7.06 48,927 VA Bonus Option III 3,957.580 7.04 27,861 SmartDesign Advantage Option I 1,471.448 7.01 10,315 ----------------- --------------- 1,745,760.759 $12,339,503 ================= =============== ING VP MIDCAP OPPORTUNITIES Contracts in accumulation period: Rollover Choice Option I 1,699.815 $7.24 $12,307 ----------------- --------------- 1,699.815 $12,307 ================= =============== ING VP SMALLCAP OPPORTUNITIES Contracts in accumulation period: DVA 7,081.683 $4.65 $32,930 DVA Plus - Standard (pre February 2000) 4,958.507 4.63 22,958 DVA Plus - Standard (post January 2000 & post 2000) 59,275.642 4.63 274,446 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 774,556.649 4.62 3,578,452 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,042,745.581 4.62 4,817,485 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 139,362.310 4.61 642,460 186
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP SMALLCAP OPPORTUNITIES (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 48,062.812 $4.61 $221,570 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 563,708.902 4.60 2,593,061 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 483,572.111 4.60 2,224,432 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 454,391.883 4.59 2,085,659 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 696,664.441 4.59 3,197,690 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,196,796.823 4.58 5,481,329 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 345.077 4.58 1,580 Access - Annual Ratchet (post April 2001) 54,432.709 4.57 248,757 Access - Max 5.5 (post April 2001), Landmark - Max 7 249,713.741 4.57 1,141,192 Access - 7% Solution (post April 2001) 46,045.780 4.56 209,969 Access - Max 7 (post April 2001) 177,134.824 4.55 805,963 ES II - Max 7 (post 2000), Generations - Max 7 374,677.088 4.59 1,719,768 Landmark - 7% Solution 117,675.900 4.57 537,779 Value 58,728.870 4.66 273,677 Rollover Choice Option I 3,071.070 4.67 14,342 ----------------- --------------- 6,553,002.403 $30,125,499 ================= =============== INVESCO VIF - FINANCIAL SERVICES Contracts in accumulation period: DVA 406.061 $7.90 $3,208 DVA Series 100 670.845 7.86 5,273 DVA Plus - Standard (pre February 2000) 5,407.333 7.88 42,610 DVA Plus - Standard (post January 2000 & post 2000) 19,155.514 7.87 150,754 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 584,089.237 7.86 4,590,941 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 491,868.834 7.85 3,861,170 187
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - FINANCIAL SERVICES (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 117,511.348 $7.84 $921,289 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 44,675.520 7.83 349,809 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 200,145.811 7.83 1,567,142 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 182,155.631 7.82 1,424,457 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 110,702.021 7.82 865,690 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 284,060.139 7.81 2,218,510 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 407,036.399 7.80 3,174,884 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 667.125 7.79 5,197 Access - Annual Ratchet (post April 2001) 36,848.113 7.78 286,678 Access - Max 5.5 (post April 2001), Landmark - Max 7 84,291.461 7.78 655,788 Access - 7% Solution (post April 2001) 8,073.622 7.77 62,732 Access - Max 7 (post April 2001) 32,860.169 7.76 254,995 ES II - Max 7 (post 2000), Generations - Max 7 91,597.737 7.81 715,378 Landmark - 7% Solution 47,920.623 7.79 373,302 Value 5,012.313 7.92 39,698 VA Option I 28,312.555 7.91 223,952 VA Option II 17,476.529 7.88 137,715 VA Option III 2,929.158 7.86 23,023 VA Bonus Option I 40,079.602 7.85 314,625 VA Bonus Option II 39,578.360 7.82 309,503 VA Bonus Option III 41,939.098 7.80 327,125 SmartDesign Advantage Option I 786.478 7.77 6,111 SmartDesign Advantage Option II 3,904.827 7.74 30,223 SmartDesign Advantage Option III 535.466 7.73 4,139 ----------------- --------------- 2,930,697.929 $22,945,921 ================= =============== INVESCO VIF - HEALTH SCIENCES Contracts in accumulation period: DVA 80 9,089.241 $7.72 $70,169 188
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - HEALTH SCIENCES (CONTINUED) DVA 540.527 $7.70 $4,162 DVA Series 100 541.402 7.66 4,147 DVA Plus - Standard (pre February 2000) 14,310.616 7.67 109,762 DVA Plus - Standard (post January 2000 & post 2000) 22,197.466 7.66 170,033 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 351,424.377 7.65 2,688,396 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 481,392.756 7.65 3,682,655 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 166,542.609 7.63 1,270,720 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 35,809.566 7.63 273,227 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 183,978.442 7.62 1,401,916 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 493,957.606 7.62 3,763,957 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 271,523.360 7.61 2,066,293 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 375,101.966 7.61 2,854,526 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 736,095.750 7.59 5,586,967 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,088.348 7.59 15,851 Access - Annual Ratchet (post April 2001) 15,338.008 7.58 116,262 Access - Max 5.5 (post April 2001), Landmark - Max 7 151,076.855 7.57 1,143,652 Access - 7% Solution (post April 2001) 9,189.497 7.57 69,564 Access - Max 7 (post April 2001) 45,837.467 7.56 346,531 ES II - Max 7 (post 2000), Generations - Max 7 306,734.060 7.60 2,331,179 Landmark - 7% Solution 94,313.253 7.58 714,894 Value 10,080.927 7.71 77,724 VA Option I 33,864.629 7.70 260,758 VA Option II 24,596.088 7.67 188,652 189
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - HEALTH SCIENCES (CONTINUED) VA Option III 9,104.697 $7.65 $69,651 VA Bonus Option I 44,853.153 7.65 343,127 VA Bonus Option II 46,036.519 7.61 350,338 VA Bonus Option III 66,227.851 7.59 502,669 SmartDesign Advantage Option I 4,098.527 7.56 30,985 SmartDesign Advantage Option II 4,279.783 7.54 32,270 SmartDesign Advantage Option III 2,987.645 7.52 22,467 ----------------- --------------- 4,013,212.991 $30,563,504 ================= =============== INVESCO VIF - LEISURE Contracts in accumulation period: DVA Plus - Standard (pre February 2000) 2,494.057 $8.45 $21,075 DVA Plus - Standard (post January 2000 & post 2000) 1,919.924 8.45 16,223 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 69,606.717 8.44 587,481 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 132,018.982 8.44 1,114,240 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 28,020.116 8.43 236,210 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,463.630 8.43 12,338 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 65,381.973 8.43 551,170 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 30,006.613 8.42 252,656 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 41,607.549 8.42 350,336 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 54,250.341 8.42 456,788 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 100,698.931 8.41 846,878 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 757.891 8.41 6,374 190
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - LEISURE (CONTINUED) Access - Annual Ratchet (post April 2001) 3,611.911 $8.40 $30,340 Access - Max 5.5 (post April 2001), Landmark - Max 7 40,591.830 8.40 340,971 Access - 7% Solution (post April 2001) 17,360.124 8.40 145,825 Access - Max 7 (post April 2001) 7,579.148 8.39 63,589 ES II - Max 7 (post 2000), Generations - Max 7 94,573.834 8.41 795,366 Landmark - 7% Solution 24,347.114 8.41 204,759 VA Option I 749.048 8.47 6,344 VA Option II 695.822 8.45 5,880 VA Option III 767.220 8.44 6,475 VA Bonus Option I 4,265.438 8.44 36,000 VA Bonus Option II 1,327.969 8.42 11,181 ----------------- ---------------- 724,096.182 $6,098,499 ================= ================ INVESCO VIF - UTILITIES Contracts in accumulation period: DVA 80 1,587.040 $6.43 $10,205 DVA Plus - Standard (pre February 2000) 63.189 6.38 403 DVA Plus - Standard (post January 2000 & post 2000) 11,472.225 6.38 73,193 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 127,144.822 6.37 809,913 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 152,797.244 6.37 973,318 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 86,524.213 6.36 550,294 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 18,051.925 6.35 114,630 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 51,660.421 6.35 328,044 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 103,373.775 6.34 655,390 191
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - UTILITIES (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 94,265.565 $6.34 $597,644 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 167,758.159 6.33 1,061,909 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 173,345.603 6.32 1,095,544 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,187.610 6.32 13,826 Access - Annual Ratchet (post April 2001) 814.005 6.31 5,136 Access - Max 5.5 (post April 2001), Landmark - Max 7 52,670.628 6.30 331,825 Access - 7% Solution (post April 2001) 24,927.137 6.30 157,041 Access - Max 7 (post April 2001) 2,946.473 6.29 18,533 ES II - Max 7 (post 2000), Generations - Max 7 34,605.984 6.33 219,056 Landmark - 7% Solution 30,198.224 6.31 190,551 VA Option I 14,992.194 6.41 96,100 VA Option II 18,841.260 6.38 120,207 VA Option III 1,930.007 6.37 12,294 VA Bonus Option I 33,452.942 6.36 212,761 VA Bonus Option II 8,961.746 6.34 56,817 VA Bonus Option III 11,546.075 6.32 72,971 SmartDesign Advantage Option I 523.745 6.29 3,294 SmartDesign Advantage Option II 133.928 6.28 841 SmartDesign Advantage Option III 417.793 6.26 2,615 ----------------- --------------- 1,227,193.932 $7,784,355 ================= =============== JANUS ASPEN SERIES BALANCED Contracts in accumulation period: Rollover Choice Option I 47,037.671 $9.25 $435,098 Rollover Choice Option II 6,041.602 9.23 55,764 Rollover Choice Option III 591.682 9.21 5,449 ----------------- --------------- 53,670.955 $496,311 ================= =============== JANUS ASPEN SERIES FLEXIBLE INCOME Contracts in accumulation period: Rollover Choice Option I 19,824.232 $10.99 $217,868 Rollover Choice Option II 5,939.558 10.97 65,157 ----------------- --------------- 25,763.790 $283,025 ================= =============== JANUS ASPEN SERIES GROWTH Contracts in accumulation period: Rollover Choice Option I 26,690.842 $7.19 $191,907 ----------------- --------------- 26,690.842 $191,907 ================= =============== 192
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES WORLDWIDE GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 3,936.633 $6.84 $26,927 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,893.741 6.82 19,735 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,871.582 6.81 39,985 VA Option I 105,069.103 6.91 726,028 VA Option II 53,631.991 6.88 368,988 VA Option III 14,254.337 6.86 97,785 VA Bonus Option I 150,684.827 6.86 1,033,698 VA Bonus Option II 65,555.286 6.83 447,743 VA Bonus Option III 58,756.313 6.81 400,130 SmartDesign Advantage Option I 7,229.106 6.78 49,013 SmartDesign Advantage Option II 11,630.857 6.76 78,625 SmartDesign Advantage Option III 3,174.425 6.75 21,427 Rollover Choice Option I 31,947.524 6.93 221,396 Rollover Choice Option II 581.133 6.91 4,016 ----------------- --------------- 515,216.858 $3,535,496 ================= =============== OPPENHEIMER GLOBAL SECURITIES Contracts in accumulation period: Rollover Choice Option I 23,286.992 $7.67 $178,611 Rollover Choice Option II 2,448.302 7.65 18,730 Rollover Choice Option III 1,064.000 7.64 8,129 ----------------- --------------- 26,799.294 $205,470 ================= =============== OPPENHEIMER STRATEGIC BOND Contracts in accumulation period: Rollover Choice Option I 832.001 $10.67 $8,877 Rollover Choice Option II 696.170 10.65 7,414 ----------------- --------------- 1,528.171 $16,291 ================= =============== PIMCO HIGH YIELD Contracts in accumulation period: DVA 80 2,477.364 $10.12 $25,071 DVA 102,400.716 10.03 1,027,079 DVA Series 100 940.098 9.87 9,279 DVA Plus - Standard (pre February 2000) 281,240.079 9.91 2,787,089 DVA Plus - Standard (post January 2000 & post 2000) 278,564.887 9.89 2,755,007 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,193,058.219 9.84 60,939,693 193
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIMCO HIGH YIELD (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 3,925,319.594 $9.82 $38,546,638 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,053,445.935 9.77 29,832,167 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 657,117.954 9.75 6,406,900 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,388,956.102 9.73 13,514,543 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 5,428,136.230 9.70 52,652,921 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,004,329.863 9.68 9,721,913 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,639,544.850 9.66 35,158,003 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,093,339.354 9.61 29,726,991 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,447.208 9.59 42,649 Access - Annual Ratchet (post April 2001) 186,395.537 9.54 1,778,213 Access - Max 5.5 (post April 2001), Landmark - Max 7 423,832.352 9.52 4,034,884 Access - 7% Solution (post April 2001) 64,823.416 9.50 615,822 Access - Max 7 (post April 2001) 218,537.943 9.45 2,065,184 ES II - Max 7 (post 2000), Generations - Max 7 624,871.926 9.63 6,017,517 Landmark - 7% Solution 272,347.815 9.57 2,606,369 Access One 3,970.224 10.27 40,774 Value 114,778.115 10.08 1,156,963 VA Option I 78,297.774 10.05 786,893 VA Option II 31,300.139 9.91 310,184 VA Option III 15,357.631 9.84 151,119 VA Bonus Option I 113,201.558 9.82 1,111,639 VA Bonus Option II 71,352.805 9.68 690,695 VA Bonus Option III 27,719.473 9.61 266,384 194
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIMCO HIGH YIELD (CONTINUED) SmartDesign Advantage Option I 16,988.722 $9.48 $161,053 SmartDesign Advantage Option II 25,014.302 9.39 234,884 SmartDesign Advantage Option III 10,727.585 9.32 99,981 ----------------- ---------------- 31,352,835.770 $305,274,501 ================= ================ PIMCO STOCKSPLUS GROWTH AND INCOME Contracts in accumulation period: DVA 80 396.590 $8.28 $3,284 DVA 68,010.499 8.20 557,686 DVA Series 100 1,768.555 8.07 14,272 DVA Plus - Standard (pre February 2000) 154,632.792 8.11 1,254,072 DVA Plus - Standard (post January 2000 & post 2000) 146,940.984 8.09 1,188,753 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,911,148.898 8.05 39,534,749 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,241,995.580 8.03 18,003,225 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,392,261.204 7.99 27,104,167 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 562,721.076 7.97 4,484,887 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 745,489.553 7.95 5,926,642 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 5,327,507.941 7.94 42,300,413 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 777,891.760 7.92 6,160,903 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,932,333.312 7.90 15,265,433 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,702,074.897 7.86 13,378,309 195
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIMCO STOCKSPLUS GROWTH AND INCOME (CONTINUED) Access - Annual Ratchet (post April 2001) 24,968.654 $7.80 $194,756 Access - Max 5.5 (post April 2001), Landmark - Max 7 218,962.411 7.79 1,705,717 Access - 7% Solution (post April 2001) 59,533.277 7.77 462,574 Access - Max 7 (post April 2001) 103,647.174 7.73 801,193 ES II - Max 7 (post 2000), Generations - Max 7 312,246.133 7.88 2,460,500 Landmark - 7% Solution 76,765.128 7.82 600,303 Value 28,964.179 8.24 238,665 ----------------- ---------------- 22,790,260.597 $181,640,503 ================= ================ PIONEER EQUITY-INCOME VCT Contracts in accumulation period: Rollover Choice Option I 15,836.215 $8.28 $131,124 Rollover Choice Option II 5,737.063 8.27 47,446 ----------------- ---------------- 21,573.278 178,570 ================= ================ PIONEER FUND VCT Contracts in accumulation period: DVA 80 1,285.499 $7.54 $9,693 DVA Plus - Standard (pre February 2000) 1,732.586 7.49 12,977 DVA Plus - Standard (post January 2000 & post 2000) 10,928.441 7.48 81,745 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 291,460.540 7.47 2,177,210 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 295,687.608 7.47 2,208,786 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 144,234.289 7.46 1,075,988 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 62,576.065 7.45 466,192 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 184,118.536 7.44 1,369,842 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 297,004.743 7.44 2,209,715 196
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIONEER FUND VCT (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 135,708.029 $7.43 $1,008,311 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 229,508.353 7.43 1,705,247 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 562,117.242 7.42 4,170,910 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,686.900 7.41 49,550 Access - Annual Ratchet (post April 2001) 8,140.811 7.40 60,242 Access - Max 5.5 (post April 2001), Landmark - Max 7 57,294.293 7.39 423,405 Access - 7% Solution (post April 2001) 19,166.357 7.39 141,639 Access - Max 7 (post April 2001) 21,066.987 7.38 155,474 ES II - Max 7 (post 2000), Generations - Max 7 79,240.223 7.42 587,962 Landmark - 7% Solution 91,407.752 7.41 677,331 Value 1,654.898 7.53 12,461 VA Option I 38,807.073 7.52 291,829 VA Option II 19,828.989 7.49 148,519 VA Option III 6,500.233 7.47 48,557 VA Bonus Option I 47,948.431 7.47 358,175 VA Bonus Option II 50,245.101 7.43 373,321 VA Bonus Option III 19,852.051 7.42 147,302 SmartDesign Advantage Option I 4,167.994 7.38 30,760 SmartDesign Advantage Option II 2,168.327 7.36 15,959 SmartDesign Advantage Option III 857.708 7.35 6,304 Rollover Choice Option I 5,561.288 7.54 41,932 ----------------- --------------- 2,696,957.347 $20,067,338 ================= =============== PIONEER MID-CAP VALUE VCT Contracts in accumulation period: DVA 17,509.307 $9.41 $164,763 DVA Plus - Standard (pre February 2000) 29,446.556 9.38 276,209 DVA Plus - Standard (post January 2000 & post 2000) 45,975.704 9.37 430,792 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 983,243.301 9.36 9,203,157 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 728,410.430 9.36 6,817,922 197
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIONEER MID-CAP VALUE VCT (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 509,210.033 $9.35 $4,761,114 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 113,225.368 9.34 1,057,525 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 338,219.386 9.34 3,158,969 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 796,390.778 9.33 7,430,326 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 218,154.631 9.32 2,033,201 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 503,891.718 9.32 4,696,271 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 740,866.746 9.31 6,897,469 Access - Annual Ratchet (post April 2001) 28,194.228 9.29 261,924 Access - Max 5.5 (post April 2001), Landmark - Max 7 145,462.672 9.29 1,351,348 Access - 7% Solution (post April 2001) 25,874.832 9.28 240,118 Access - Max 7 (post April 2001) 74,644.120 9.27 691,951 ES II - Max 7 (post 2000), Generations - Max 7 245,270.337 9.31 2,283,467 Landmark - 7% Solution 127,116.070 9.30 1,182,179 Value 11,515.180 9.42 108,473 Rollover Choice Option I 2,421.894 9.43 22,838 Rollover Choice Option II 369.982 9.41 3,482 ----------------- --------------- 5,685,413.273 $53,073,498 ================= =============== PIONEER SMALL COMPANY VCT Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 13,596.414 $7.81 $106,188 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 11,749.693 7.79 91,530 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 16,355.281 7.77 127,081 198
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIONEER SMALL COMPANY VCT (CONTINUED) VA Option I 80,077.498 $7.89 $631,811 VA Option II 34,919.722 7.85 274,120 VA Option III 9,445.248 7.84 74,051 VA Bonus Option I 122,885.683 7.83 962,195 VA Bonus Option II 57,105.530 7.80 445,423 VA Bonus Option III 50,553.725 7.78 393,308 SmartDesign Advantage Option I 8,317.144 7.74 64,375 SmartDesign Advantage Option II 8,192.585 7.72 63,247 SmartDesign Advantage Option III 24,011.644 7.70 184,890 ----------------- --------------- 437,210.167 $3,418,219 ================= =============== PROFUND VP BULL Contracts in accumulation period: DVA 1,672.331 $6.71 $11,221 DVA Plus - Standard (pre February 2000) 8,556.341 6.68 57,156 DVA Plus - Standard (post January 2000 & post 2000) 18,623.407 6.68 124,404 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,231,932.938 6.67 8,216,993 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,271,888.411 6.66 8,470,777 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 194,394.055 6.65 1,292,720 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 117,319.332 6.64 779,000 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 127,499.175 6.64 846,595 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 342,069.817 6.63 2,267,923 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 185,752.318 6.63 1,231,538 199
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PROFUND VP BULL (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 475,784.662 $6.62 $3,149,694 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 491,041.711 6.61 3,245,786 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 304.523 6.61 2,013 Access - Annual Ratchet (post April 2001) 29,583.240 6.59 194,954 Access - Max 5.5 (post April 2001), Landmark - Max 7 23,782.886 6.59 156,729 Access - 7% Solution (post April 2001) 32,743.236 6.58 215,450 Access - Max 7 (post April 2001) 19,326.241 6.57 126,973 ES II - Max 7 (post 2000), Generations - Max 7 114,753.182 6.62 759,666 Landmark - 7% Solution 16,668.657 6.60 110,013 Value 1,919.612 6.72 12,900 ----------------- --------------- 4,705,616.075 $31,272,505 ================= =============== PROFUND VP EUROPE 30 Contracts in accumulation period: DVA Series 100 2,091.440 $6.06 $12,674 DVA Plus - Standard (pre February 2000) 2,703.205 6.07 16,408 DVA Plus - Standard (post January 2000 & post 2000) 11,286.811 6.06 68,398 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 257,910.120 6.05 1,560,356 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,365,500.420 6.05 8,261,278 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 156,756.190 6.04 946,807 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 42,457.449 6.03 256,018 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 64,316.959 6.03 387,831 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 181,952.664 6.02 1,095,355 200
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PROFUND VP EUROPE 30 (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 105,639.573 $6.02 $635,950 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 103,963.433 6.01 624,820 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 218,082.990 6.00 1,308,498 Access - Annual Ratchet (post April 2001) 8,143.705 5.98 48,699 Access - Max 5.5 (post April 2001), Landmark - Max 7 17,650.043 5.98 105,547 Access - 7% Solution (post April 2001) 1,104.440 5.97 6,594 Access - Max 7 (post April 2001) 30,091.610 5.96 179,346 ES II - Max 7 (post 2000), Generations - Max 7 13,789.452 6.00 82,737 Landmark - 7% Solution 5,164.325 5.99 30,934 Value 204.139 6.10 1,245 ----------------- --------------- 2,588,808.968 $15,629,495 ================= =============== PROFUND VP SMALL CAP Contracts in accumulation period: DVA 2,329.512 $7.26 $16,912 DVA Plus - Standard (pre February 2000) 41,515.869 7.23 300,160 DVA Plus - Standard (post January 2000 & post 2000) 31,843.836 7.22 229,912 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,755,935.865 7.21 12,660,298 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,133,338.695 7.21 8,171,372 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 269,439.892 7.19 1,937,273 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 72,216.551 7.19 519,237 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 236,885.358 7.18 1,700,837 201
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PROFUND VP SMALL CAP (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 499,605.632 $7.17 $3,582,172 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 182,535.627 7.17 1,308,780 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 420,431.165 7.16 3,010,287 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 374,257.847 7.15 2,675,944 Access - Annual Ratchet (post April 2001) 7,373.061 7.13 52,570 Access - Max 5.5 (post April 2001), Landmark - Max 7 68,579.360 7.13 488,971 Access - 7% Solution (post April 2001) 12,461.032 7.12 88,723 Access - Max 7 (post April 2001) 83,442.202 7.11 593,274 ES II - Max 7 (post 2000), Generations - Max 7 114,433.002 7.16 819,340 Landmark - 7% Solution 59,952.995 7.14 428,064 Value 4,866.239 7.27 35,378 ----------------- --------------- 5,371,443.740 $38,619,504 ================= =============== PRUDENTIAL JENNISON Contracts in accumulation period: DVA 11,366.432 $4.32 $49,103 DVA Plus - Standard (pre February 2000) 23,359.674 4.29 100,213 DVA Plus - Standard (post January 2000 & post 2000) 171,751.231 4.28 735,095 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,009,407.882 4.27 4,310,172 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,366,873.798 4.27 5,836,551 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 322,010.407 4.26 1,371,764 202
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL JENNISON (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 222,330.396 $4.25 $944,904 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 522,739.562 4.24 2,216,416 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 840,344.480 4.24 3,563,061 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 565,738.494 4.23 2,393,074 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 934,116.055 4.23 3,951,311 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,916,839.330 4.22 8,089,062 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,385.239 4.21 22,672 Access - Annual Ratchet (post April 2001) 22,367.313 4.20 93,943 Access - Max 5.5 (post April 2001), Landmark - Max 7 265,343.797 4.19 1,111,791 Access - 7% Solution (post April 2001) 78,263.500 4.19 327,924 Access - Max 7 (post April 2001) 158,536.137 4.18 662,681 ES II - Max 7 (post 2000), Generations - Max 7 259,117.120 4.22 1,093,474 Landmark - 7% Solution 69,926.920 4.20 293,693 Value 30,964.333 4.33 134,076 VA Option I 8,151.859 4.33 35,298 VA Option II 15,799.358 4.29 67,779 VA Bonus Option I 35,940.756 4.27 153,467 VA Bonus Option II 37,135.007 4.23 157,081 VA Bonus Option III 4,306.427 4.22 18,173 SmartDesign Advantage Option I 2,115.980 4.18 8,845 SmartDesign Advantage Option II 2,970.195 4.16 12,356 SmartDesign Advantage Option III 608.533 4.14 2,519 ----------------- --------------- 8,903,810.215 $37,756,498 ================= =============== PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH Contracts in accumulation period: DVA 1,624.864 $4.15 $6,743 DVA Plus - Standard (pre February 2000) 15,070.093 4.13 62,239 DVA Plus - Standard (post January 2000 & post 2000) 88,237.466 4.13 364,421 203
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 535,933.282 $4.12 $2,208,045 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 519,699.551 4.11 2,135,965 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 120,333.463 4.10 493,367 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 46,748.068 4.10 191,667 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 243,443.935 4.09 995,686 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 393,653.448 4.09 1,610,043 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 235,551.818 4.08 961,051 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 360,088.600 4.08 1,469,161 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 636,058.487 4.07 2,588,758 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,559.403 4.06 14,451 Access - Annual Ratchet (post April 2001) 34,976.884 4.05 141,656 Access - Max 5.5 (post April 2001), Landmark - Max 7 156,993.562 4.05 635,824 Access - 7% Solution (post April 2001) 16,084.015 4.05 65,140 Access - Max 7 (post April 2001) 39,549.231 4.04 159,779 ES II - Max 7 (post 2000), Generations - Max 7 98,449.075 4.07 400,688 Landmark - 7% Solution 89,981.934 4.06 365,327 Value 54,114.150 4.16 225,115 VA Option I 5,285.109 4.16 21,986 VA Option II 12,259.907 4.13 50,633 VA Bonus Option I 13,713.568 4.11 56,363 204
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH (CONTINUED) VA Bonus Option II 4,728.844 $4.08 $19,294 VA Bonus Option III 15,437.133 4.07 62,829 SmartDesign Advantage Option I 1,182.895 4.04 4,779 SmartDesign Advantage Option II 356.962 4.02 1,435 SmartDesign Advantage Option III 7,993.599 4.01 32,054 ----------------- --------------- 3,751,109.346 $15,344,499 ================= =============== PUTNAM VT GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 613.560 $7.40 $4,540 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,518.706 7.38 25,968 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,355.145 7.36 9,974 VA Option I 47,269.102 7.62 360,191 VA Option II 9,757.789 7.59 74,062 VA Option III 1,001.492 7.57 7,581 VA Bonus Option I 71,543.199 7.56 540,867 VA Bonus Option II 50,353.513 7.53 379,162 VA Bonus Option III 24,513.938 7.51 184,100 SmartDesign Advantage Option I 8,057.360 7.33 59,060 SmartDesign Advantage Option II 1,505.661 7.30 10,991 SmartDesign Advantage Option III 688.406 7.28 5,012 ----------------- --------------- 220,177.871 $1,661,508 ================= =============== PUTNAM VT INTERNATIONAL GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 7,080.219 $8.03 $56,854 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 743.400 8.00 5,947 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,603.594 7.98 36,737 VA Option I 88,504.950 8.10 716,890 VA Option II 18,195.578 8.07 146,838 VA Option III 7,142.668 8.05 57,498 VA Bonus Option I 94,100.599 8.04 756,569 VA Bonus Option II 24,314.533 8.01 194,759 VA Bonus Option III 101,982.647 7.99 814,841 205
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL GROWTH AND INCOME (CONTINUED) SmartDesign Advantage Option I 6,043.072 $7.95 $48,042 SmartDesign Advantage Option II 2,280.679 7.93 18,086 SmartDesign Advantage Option III 16,122.611 7.91 127,530 ----------------- --------------- 371,114.550 $2,980,591 ================= =============== PUTNAM VT VOYAGER II Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 5,242.644 $6.06 $31,770 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,365.637 6.04 14,288 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,579.319 6.03 21,583 VA Option I 44,148.219 6.12 270,187 VA Option II 33,313.466 6.09 202,879 VA Option III 4,631.701 6.08 28,161 VA Bonus Option I 96,271.677 6.07 584,369 VA Bonus Option II 38,339.846 6.05 231,956 VA Bonus Option III 21,456.980 6.03 129,386 SmartDesign Advantage Option I 8,448.608 6.01 50,776 SmartDesign Advantage Option II 12,435.747 5.99 74,490 SmartDesign Advantage Option III 863.315 5.98 5,163 ----------------- --------------- 271,097.159 $1,645,008 ================= =============== SMITH BARNEY HIGH INCOME Contracts in accumulation period: Granite PrimElite - Standard 3,602.132 $11.41 $41,100 Granite PrimElite - Annual Ratchet 24,619.405 11.28 277,707 ----------------- --------------- 28,221.537 $318,807 ================= =============== SMITH BARNEY INTERNATIONAL ALL CAP GROWTH Contracts in accumulation period: Granite PrimElite - Standard 1,685.183 $8.92 $15,032 Granite PrimElite - Annual Ratchet 21,044.795 8.82 185,615 ----------------- --------------- 22,729.978 $200,647 ================= =============== SMITH BARNEY LARGE CAP VALUE Contracts in accumulation period: Granite PrimElite - Standard 2,504.960 $14.26 $35,721 Granite PrimElite - Annual Ratchet 23,808.210 14.09 335,458 ----------------- --------------- 26,313.170 $371,179 ================= =============== 206
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- SMITH BARNEY MONEY MARKET Contracts in accumulation period: Granite PrimElite - Standard 6,864.600 $12.68 $87,043 Granite PrimElite - Annual Ratchet 4,446.085 12.53 55,709 ----------------- --------------- 11,310.685 $142,752 ================= =============== UBS TACTICAL ALLOCATION DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,476.111 $7.12 $31,870 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 9,383.635 7.08 66,436 VA Option I 46,001.622 7.19 330,752 VA Option II 16,031.679 7.16 114,787 VA Option III 7,474.126 7.14 53,365 VA Bonus Option I 58,942.255 7.14 420,848 VA Bonus Option II 38,953.675 7.10 276,571 VA Bonus Option III 18,471.861 7.09 130,965 SmartDesign Advantage Option I 6,768.805 7.06 47,788 SmartDesign Advantage Option II 10,343.837 7.04 72,821 SmartDesign Advantage Option III 326.855 7.02 2,295 ----------------- --------------- 217,174.461 $1,548,498 ================= ===============
207 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS A summary of unit values and units outstanding for variable annuity Contracts, expense ratios, excluding expenses of underlying Funds, investment income ratios, and total return for the years ended December, 31, 2002 and 2001, along with unit values and units outstanding for the year ended December 31, 2000, follows:
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST: All Cap 2002 29,232 $8.34 to $8.68 $ 247,740 2001 25,814 $11.46 to $11.76 299,314 2000 9,062 $11.54 to $11.65 104,883 All Cap Advisor 2002 18 $9.52 to $9.53 176 2001 *** *** *** 2000 *** *** *** Asset Allocation Growth 2002 6,551 $7.12 to $7.35 47,241 2001 5,718 $8.55 to $8.70 49,242 2000 501 $9.37 to $9.38 4,696 Capital Growth 2002 24,777 $9.52 to $10.52 246,769 2001 27,303 $13.93 to $15.15 395,434 2000 27,139 $16.80 to $17.71 463,399 Capital Growth Advisor 2002 14 $10.45 to $10.46 148 2001 *** *** *** 2000 *** *** ***
208 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Capital Guardian Small Cap 2002 26,339 $12.37 to $14.00 $ 341,146 2001 27,165 $16.97 to $18.87 480,513 2000 23,107 $17.94 to $19.25 422,097 Capital Guardian Small Cap Advisor 2002 33 $9.72 to $9.73 321 2001 *** *** *** 2000 *** *** *** Core Bond 2002 34,238 $11.55 to $13.41 425,125 2001 9,873 $11.14 to $12.39 114,996 2000 3,438 $11.37 to $12.19 40,000 Core Bond Advisor 2002 97 $10.24 to $10.26 992 2001 *** *** *** 2000 *** *** *** Developing World 2002 9,702 $5.98 to $6.42 60,000 2001 10,141 $6.85 to $7.25 71,466 2000 7,211 $7.47 to $7.71 54,398 Developing World Advisor 2002 8 $9.70 to $9.71 79 2001 *** *** *** 2000 *** *** *** Diversified Mid-Cap 2002 12,695 $7.09 to $7.31 91,159 2001 6,381 $8.99 to $9.15 57,814 2000 1,150 $9.87 to $9.88 11,358
209 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Diversified Mid-Cap Advisor 2002 23 $9.47 to $9.48 $ 220 2001 *** *** *** 2000 *** *** *** Equity Growth 2002 559 $7.78 to $7.85 4,362 2001 *** *** *** 2000 *** *** *** Equity Growth Advisor 2002 48 $9.63 to $9.64 458 2001 *** *** *** 2000 *** *** *** Equity Income 2002 20,545 $18.11 to $23.18 409,670 2001 17,698 $21.34 to $26.84 416,763 2000 12,207 $22.48 to $26.61 291,793 Equity Income Advisor 2002 65 $9.81 to $9.83 640 2001 *** *** *** 2000 *** *** *** Equity Opportunity 2002 19,040 $13.72 to $16.05 280,954 2001 20,717 $19.84 to $22.87 440,209 2000 19,193 $24.06 to $26.49 477,934 Equity Opportunity Advisor 2002 3 $9.74 to $9.75 34 2001 *** *** *** 2000 *** *** ***
210 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Focus Value 2002 710 $8.32 to $8.40 $ 5,931 2001 *** *** *** 2000 *** *** *** Focus Value Advisor 2002 5 $10.16 to $10.17 48 2001 *** *** *** 2000 *** *** *** Fully Managed 2002 34,525 $24.75 to $30.37 935,079 2001 23,375 $25.20 to $30.47 644,971 2000 13,395 $24.47 to $27.95 345,651 Fully Managed Advisor 2002 89 $9.99 to $10.01 894 2001 *** *** *** 2000 *** *** *** Fundamental Growth Focus 2002 345 $7.93 to $8.00 2,742 2001 *** *** *** 2000 *** *** *** Fundamental Growth Advisor 2002 11 $9.44 to $9.45 108 2001 *** *** *** 2000 *** *** *** Global Franchise 2002 1,661 $8.80 to $8.88 14,670 2001 *** *** *** 2000 *** *** ***
211 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Global Franchise Advisor 2002 74 $9.51 to $9.52 $ 708 2001 *** *** *** 2000 *** *** *** Growth 2002 53,954 $9.92 to $11.18 560,041 2001 66,921 $14.41 to $15.95 1,002,892 2000 67,525 $21.49 to $22.98 1,474,980 Growth Advisor 2002 9 $9.76 to $9.78 92 2001 *** *** *** 2000 *** *** *** Hard Assets 2002 4,986 $12.44 to $15.93 67,753 2001 2,395 $12.63 to $15.27 33,209 2000 2,584 $15.34 to $17.52 41,509 Hard Assets Advisor 2002 10 $9.82 to $9.83 97 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE 2002 608 $8.17 to $8.25 4,990 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE Advisor 2002 17 $9.74 to $9.76 165 2001 *** *** *** 2000 *** *** ***
212 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): International Equity 2002 16,969 $6.80 to $7.46 $ 120,477 2001 16,734 $8.37 to $8.98 144,061 2000 17,171 $11.23 to $11.73 194,618 International Equity Advisor 2002 26 $9.79 to $9.80 254 2001 *** *** *** 2000 *** *** *** Internet Tollkeeper 2002 2,769 $4.58 to $4.69 12,802 2001 709 $7.57 to $7.64 5,389 2000 ** ** ** Internet Tollkeeper Advisor 2002 5 $10.40 to $10.42 53 2001 *** *** *** 2000 *** *** *** Investors 2002 11,516 $7.87 to $8.19 92,136 2001 8,646 $10.45 to $10.73 91,400 2000 1,917 $11.21 to $11.31 21,558 Investors Advisor 2002 30 $9.74 to $9.75 297 2001 *** *** *** 2000 *** *** *** J.P. Morgan Fleming Small Cap Equity 2002 1,212 $7.79 to $7.87 9,490 2001 *** *** *** 2000 *** *** ***
213 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): J.P. Morgan Fleming Small Cap Advisor 2002 54 $9.48 to $9.49 $ 511 2001 *** *** *** 2000 *** *** *** Janus Growth and Income 2002 18,616 $6.87 to $7.13 130,345 2001 10,487 $8.78 to $8.93 92,720 2000 1,280 $9.93 to $9.96 12,726 Janus Growth and Income Advisor 2002 60 $9.71 to $9.73 587 2001 *** *** *** 2000 *** *** *** Large Cap Value 2002 39,602 $7.34 to $7.73 295,688 2001 27,628 $9.85 to $10.20 275,489 2000 9,362 $10.50 to $10.59 98,545 Large Cap Value Advisor 2002 32 $10.25 to $10.27 333 2001 *** *** *** 2000 *** *** *** Limited Maturity Bond 2002 28,506 $17.84 to $22.84 558,941 2001 19,509 $17.02 to $21.41 364,062 2000 11,438 $16.67 to $19.77 200,958 Liquid Asset 2002 66,797 $13.46 to $17.34 1,023,179 2001 69,541 $13.62 to $17.79 1,071,485 2000 44,678 $14.50 to $16.61 679,666
214 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Liquid Asset Advisor 2002 180 $9.98 to $9.99 $ 1,800 2001 *** *** *** 2000 *** *** *** Managed Global 2002 16,459 $12.62 to $15.12 223,084 2001 14,451 $16.18 to $19.04 250,388 2000 11,365 $19.34 to $21.72 228,347 Managed Global Advisor 2002 5 $10.23 50 2001 *** *** *** 2000 *** *** *** Mid-Cap Growth 2002 27,548 $14.97 to $17.32 435,581 2001 29,521 $29.92 to $34.01 928,290 2000 27,623 $40.98 to $43.92 1,158,061 Mid-Cap Growth Advisor 2002 56 $9.75 to $9.77 549 2001 *** *** *** 2000 *** *** *** Real Estate 2002 6,881 $24.84 to $31.80 187,607 2001 4,535 $25.36 to $31.90 126,169 2000 3,804 $25.04 to $28.59 100,303 Real Estate Advisor 2002 29 $9.60 to $9.61 276 2001 *** *** *** 2000 *** *** ***
215 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Research 2002 28,285 $13.75 to $15.91 $ 421,035 2001 31,622 $19.19 to $21.34 637,711 2000 30,638 $25.56 to $27.39 800,528 Research Advisor 2002 34 $9.70 to $9.72 326 2001 *** *** *** 2000 *** *** *** Special Situations 2002 3,609 $5.96 to $6.15 21,794 2001 2,932 $8.23 to $8.38 24,325 2000 663 $8.88 to $8.89 5,891 Special Situations Advisor 2002 6 $9.62 to $9.63 56 2001 *** *** *** 2000 *** *** *** Strategic Equity 2002 14,324 $9.29 to $10.34 139,852 2001 17,855 $13.92 to $15.26 259,382 2000 19,182 $18.40 to $19.51 359,734 Strategic Equity Advisor 2002 8 $9.63 to $9.65 78 2001 *** *** *** 2000 *** *** *** Total Return 2002 45,174 $17.48 to $20.72 853,266 2001 39,136 $18.90 to $21.94 793,394 2000 29,621 $20.10 to $21.54 608,868
216 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Total Return Advisor 2002 95 10.03 to $10.04 $ 955 2001 *** *** *** 2000 *** *** *** Value Equity 2002 11,740 $13.65 to $15.72 173,239 2001 10,991 $17.24 to $19.10 199,039 2000 9,358 $18.85 to $20.15 180,722 Value Equity Advisor 2002 11 $9.61 to $9.63 107 2001 *** *** *** 2000 *** *** *** Van Kampen Growth and Income 2002 30,992 $16.77 to $19.76 554,608 2001 34,270 $20.13 to $23.30 732,049 2000 34,836 $24.00 to $26.02 860,338 Van Kampen Growth and Income Advisor 2002 101 $9.78 to $9.79 990 2001 *** *** *** 2000 *** *** *** AIM VARIABLE INSURANCE FUNDS: AIM V.I. Dent Demographic Trends 2002 1,550 $7.24 to $7.38 11,335 2001 323 $10.97 to $11.00 3,550 2000 ** ** **
217 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- AIM VARIABLE INSURANCE FUNDS (CONTINUED): AIM V.I. Growth 2002 121 $6.92 to $7.06 $ 848 2001 43 $10.32 to $10.35 443 2000 ** ** ** AIM V.I. Capital Appreciation 2002 4 $7.40 27 2001 *** *** *** 2000 *** *** *** AIM V.I. Core Equity 2002 5 $8.26 41 2001 *** *** *** 2000 *** *** *** AIM V.I. Premier Equity 2002 12 $6.82 to $6.84 80 2001 *** *** *** 2000 *** *** *** ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.: Alliance Bernstein Value 2002 315 $8.46 to $8.66 2,709 2001 59 $9.98 to $10.05 595 2000 ** ** ** Alliance Growth and Income 2002 644 $7.23 to $7.40 4,730 2001 172 $9.57 to $9.61 1,653 2000 ** ** ** Alliance Premier Growth 2002 322 $6.41 to $6.56 2,094 2001 114 $9.52 to $9.58 1,091 2000 ** ** **
218 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND: Fidelity(R) VIP GrowtH 2002 3,655 $6.26 to $6.43 $ 23,212 2001 75 $9.25 to $9.29 693 2000 ** ** ** Fidelity(R) VIP Equity-Income 2002 3,054 $7.70 to $7.91 23,851 2001 203 $9.55 to $9.61 1,949 2000 ** ** ** Fidelity(R)VIP Contrafund(R) 2002 513 $8.50 to $8.73 4,438 2001 122 $9.68 to $9.73 1,183 2000 ** ** ** Fidelity(R) VIP Overseas 2002 1 $7.89 9 2001 *** *** *** 2000 *** *** *** FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST: Franklin Small Cap Value Securities 2002 2 $8.97 to $8.99 17 2001 *** *** *** 2000 *** *** *** GREENWICH STREET SERIES FUND: Greenwich Appreciation 2002 42 $13.88 to $14.02 589 2001 42 $17.07 to $17.22 723 2000 46 $18.03 to $18.16 831
219 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GALAXY VIP FUND: Galaxy VIP Asset Allocation 2002 78 $8.05 to $8.15 $ 631 2001 128 $9.75 to $9.84 1,260 2000 129 $10.73 to $10.78 1,387 Galaxy VIP Equity 2002 75 $6.46 to $6.57 487 2001 88 $9.12 to $9.21 807 2000 94 $11.36 to $11.41 1,071 Galaxy VIP Growth and Income 2002 16 $7.44 to $7.56 122 2001 19 $10.31 to $10.40 201 2000 26 $10.93 to $10.98 284 Galaxy VIP High Quality Bond 2002 10 $12.57 to $12.74 130 2001 13 $11.60 to $11.70 152 2000 7 $11.04 to $11.05 78 Galaxy VIP Small Company Growth 2002 7 $8.55 to $8.69 57 2001 6 $12.99 to $13.14 84 2000 5 $13.27 to $13.35 72 ING GET FUND: ING GET Fund - Series N 2002 2,862 $9.96 to $10.10 28,661 2001 3,009 $10.24 to $10.28 30,868 2000 ** ** **
220 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING GET FUND (CONTINUED): ING GET Fund - Series P 2002 14,328 $9.81 to $10.02 $ 143,846 2001 15,276 $9.99 to $10.04 153,045 2000 ** ** ** ING GET Fund - Series Q 2002 16,855 $9.93 to $10.12 169,029 2001 190 $10.00 1,904 2000 ** ** ** ING GET Fund - Series R 2002 16,911 $10.01 to $10.16 170,526 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series S 2002 21,867 $9.98 to $10.08 219,270 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series T 2002 23,643 $10.04 to $10.10 237,948 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series U 2002 105 $9.99 to $10.00 1,048 2001 *** *** *** 2000 *** *** ***
221 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC.: ING Alger Growth 2002 6 $6.56 $ 39 2001 *** *** *** 2000 *** *** *** ING American Century Small Cap Value 2002 - $8.10 2 2001 *** *** *** 2000 *** *** *** ING J.P. Morgan Mid Cap Value 2002 33 $9.09 to $9.19 301 2001 *** *** *** 2000 *** *** *** ING MFS(R)Capital Opportunities (Initial Class) 2002 209 $6.04 to $6.18 1,280 2001 78 $8.92 to $9.91 698 2000 ** ** ** ING MFS(R)Capital Opportunities (Sevice Class) 2002 11 $6.85 72 2001 *** *** *** 2000 *** *** *** ING MFS(R) Global Growth 2002 9 $8.27 to $8.35 75 2001 *** *** *** 2000 *** *** ***
222 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC. (CONTINUED): ING OpCap Balanced Value 2002 16 $7.80 $ 126 2001 *** *** *** 2000 *** *** *** ING PIMCO Total Return 2002 55 $10.75 593 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Capital 2002 1 $7.41 9 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Investors Value 2002 - $7.61 4 2001 *** *** *** 2000 *** *** *** ING Scudder International Growth 2002 1 $8.13 to $8.14 7 2001 *** *** *** 2000 *** *** *** ING T. Rowe Price Growth Equity 2002 19 $7.51 to $7.52 144 2001 *** *** *** 2000 *** *** *** ING UBS Tactical Asset Allocation Division 2002 - $7.54 2 2001 *** *** *** 2000 *** *** ***
223 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC. (CONTINUED): ING Van Kampen Comstock Division 2002 210 $8.24 to $8.34 $ 1,737 2001 *** *** *** 2000 *** *** *** ING VARIABLE INSURANCE TRUST: ING VP Worldwide Growth 2002 5,299 $5.05 to $5.28 27,358 2001 2,863 $6.92 to $7.08 20,014 2000 635 $8.72 to $8.78 5,554 ING VP BOND PORTFOLIO: ING VP Bond 2002 4,668 $10.58 to $10.69 49,590 2001 *** *** *** 2000 *** *** *** ING VARIABLE PORTFOLIOS, INC.: ING VP Growth 2002 7 $6.94 46 2001 *** *** *** 2000 *** *** *** ING VP Index Plus LargeCap 2002 634 $7.11 to $7.31 4,589 2001 87 $9.36 to $9.40 812 2000 ** ** ** ING VP Index Plus MidCap 2002 692 $8.41 to $8.64 5,909 2001 83 $9.87 to $9.91 820 2000 ** ** **
224 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING VARIABLE PORTFOLIOS, INC. (CONTINUED): ING VP Index Plus SmallCap 2002 465 $8.47 to $8.70 $ 4,005 2001 67 $10.07 to $10.11 680 2000 ** ** ** ING VP Small Company 2002 21 $7.54 to $7.56 156 2001 *** *** *** 2000 *** *** *** ING VP Value Opportunity 2002 166 $6.46 to $6.63 1,086 2001 33 $9.00 to $9.04 298 2000 ** ** ** ING VARIABLE PRODUCTS TRUST: ING VP Convertible 2002 107 $9.48 to $9.70 1,034 2001 18 $10.46 to $10.52 194 2000 ** ** ** ING VP Growth Opportunities 2002 1,895 $5.19 to $5.32 9,918 2001 671 $7.75 to $7.82 5,219 2000 ** ** ** ING VP International Value 2002 5 $8.45 to $8.47 42 2001 *** *** *** 2000 *** *** ***
225 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING VARIABLE PRODUCTS TRUST (CONTINUED): ING VP Large Company Value 2002 120 $7.84 to $8.03 $ 958 2001 15 $10.37 to $10.45 156 2000 ** ** ** ING VP LargeCap Growth 2002 163 $6.06 to $6.21 1,006 2001 56 $9.57 to $9.62 533 2000 ** ** ** ING VP MagnaCap 2002 1,746 $7.00 to $7.16 12,338 2001 579 $9.30 to $9.39 5,402 2000 ** ** ** ING VP MidCap Opportunities 2002 2 $7.24 12 2001 *** *** *** 2000 *** *** *** ING VP SmallCap Opportunities 2002 6,553 $4.55 to $4.67 30,118 2001 1,737 $8.28 to $8.36 14,437 2000 ** ** ** INVESCO VARIABLE INVESTMENT FUNDS, INC.: INVESCO VIF - Financial Services 2002 2,931 $7.73 to $7.92 22,941 2001 256 $9.33 to $9.39 2,404 2000 ** ** **
226 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. (CONTINUED): INVESCO VIF - Health Sciences 2002 4,013 $7.52 to $7.72 $ 30,558 2001 1,052 $10.22 to $10.29 10,790 2000 ** ** ** INVESCO VIF - Leisure 2002 724 $8.39 to $8.47 6,097 2001 *** *** *** 2000 *** *** *** INVESCO VIF - Utilities 2002 1,227 $6.26 to $6.43 7,783 2001 119 $8.09 to $8.13 964 2000 ** ** ** JANUS ASPEN SERIES: Janus Aspen Series Balanced 2002 54 $9.21 to $9.25 496 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Flexible Income 2002 26 $10.97 to $10.99 283 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Growth 2002 27 $7.19 192 2001 *** *** *** 2000 *** *** ***
227 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- JANUS ASPEN SERIES (CONTINUED): Janus Aspen Series Worldwide Growth 2002 515 $6.75 to $6.93 $ 3,534 2001 139 $9.32 to $9.39 1,298 2000 ** ** ** OPPENHEIMER VARIABLE ACCOUNTS FUND: Oppenheimer Global Securities 2002 27 $7.64 to $7.67 205 2001 *** *** *** 2000 *** *** *** Oppenheimer Strategic Bond 2002 2 $10.65 to $10.67 16 2001 *** *** *** 2000 *** *** *** PIMCO VARIABLE INSURANCE TRUST: PIMCO High Yield 2002 31,353 $9.32 to $10.27 305,237 2001 23,564 $9.79 to $10.44 236,343 2000 16,336 $9.88 to $10.17 162,857 PIMCO StocksPLUS Growth and Income 2002 22,790 $7.73 to $8.28 181,637 2001 23,718 $9.91 to $10.46 241,065 2000 22,158 $11.56 to $11.91 258,484 PIONEER VARIABLE CONTRACTS TRUST: Pioneer Equity-Income VCT 2002 22 $8.27 to $8.28 179 2001 *** *** *** 2000 *** *** ***
228 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED): Pioneer Fund VCT 2002 2,697 $7.35 to $7.54 $ 20,064 2001 243 $9.36 to $9.41 2,275 2000 ** ** ** Pioneer Mid-Cap Value VCT 2002 5,685 $9.27 to $9.43 53,062 2001 480 $10.70 to $10.72 5,139 2000 ** ** ** Pioneer Small Company VCT 2002 437 $7.70 to $7.89 3,417 2001 98 $9.54 to $9.61 938 2000 ** ** ** PROFUNDS VP: ProFund VP Bull 2002 4,706 $6.57 to $6.72 31,265 2001 2,316 $8.84 to $8.92 20,583 2000 ** ** ** ProFund VP Europe 30 2002 2,589 $5.96 to $6.10 15,627 2001 764 $8.22 to $8.29 6,312 2000 ** ** ** ProFund VP Small-Cap 2002 5,371 $7.11 to $7.27 38,612 2001 2,118 $9.38 to $9.46 19,968 2000 ** ** **
229 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- PRUDENTIAL SERIES FUND, INC.: Prudential Jennison 2002 8,904 $4.14 to $4.33 $ 37,748 2001 7,335 $6.21 to $6.35 45,991 2000 987 $7.82 to $7.85 7,732 Prudential SP Jennison International Growth 2002 3,751 $4.01 to $4.16 15,341 2001 2,097 $5.35 to $5.44 11,310 2000 318 $8.55 to $8.57 2,720 PUTNAM VARIABLE TRUST: Putnam VT Growth and Income 2002 220 $7.28 to $7.62 1,662 2001 48 $9.25 to $9.50 455 2000 ** ** ** Putnam VT International Growth and Income 2002 371 $7.91 to $8.10 2,981 2001 64 $9.44 to $9.49 604 2000 ** ** ** Putnam VT Voyager Fund II 2002 271 $5.98 to $6.12 1,645 2001 66 $8.71 to $8.77 577 2000 ** ** ** TRAVELERS SERIES FUND INC.: Smith Barney High Income 2002 28 $11.28 to $11.41 319 2001 31 $11.82 to $11.94 370 2000 36 $12.46 to $12.56 446
230 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- TRAVELERS SERIES FUND INC. (CONTINUED): Smith Barney International All Cap Growth 2002 23 $8.82 to $8.92 $ 201 2001 25 $12.04 to $12.16 300 2000 26 $17.74 to $17.89 455 Smith Barney Large Cap Value 2002 26 $14.09 to $14.26 371 2001 29 $19.16 to $19.35 563 2000 33 $21.16 to $21.34 692 Smith Barney Money Market 2002 11 $12.53 to $12.68 143 2001 17 $12.55 to $12.68 221 2000 13 $12.27 to $12.38 156 UBS SERIES TRUST: UBS Tactical Allocation 2002 217 $7.02 to $7.19 1,548 2001 84 $9.37 to $9.42 787 2000 ** ** **
Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST: All Cap 2002 0.22% 0.90% to 2.25% -27.23% to -26.19% 2001 1.47% 0.90% to 2.25% 0.00% to 0.94% 2000 * * * All Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Asset Allocation Growth 2002 1.11% 0.90% to 2.25% -16.73% to -15.52% 2001 1.78% 0.90% to 2.25% -8.32% to -7.68% 2000 * * * Capital Growth 2002 - 0.80% to 2.25% -31.66% to -30.56% 2001 - 0.80% to 2.25% -15.42% to -14.46% 2000 * * * Capital Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Capital Guardian Small Cap 2002 0.12% 0.80% to 2.25% -27.11% to -25.80% 2001 0.13% 0.50% to 2.25% -3.40% to -1.97% 2000 * * * Capital Guardian Small Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Core Bond 2002 3.72% 0.80% to 2.55% 3.69% to 8.23% 2001 0.40% 0.80% to 2.25% 0.53% to 1.64% 2000 * * * Core Bond Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Developing World 2002 - 0.80% to 2.25% -12.70% to -11.45% 2001 1.18% 0.80% to 2.25% -7.10% to -5.97% 2000 * * * Developing World Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Diversified Mid-Cap 2002 0.29% 0.90% to 2.25% -21.13% to -20.11% 2001 0.48% 0.90% to 2.25% -8.41% to -7.79% 2000 * * *
231a Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Diversified Mid-Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Equity Growth 2002 *** 0.90% to 2.25% *** 2001 *** *** *** 2000 *** *** *** Equity Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Equity Income 2002 1.34% 0.50% to 2.25% -15.14% to -13.64% 2001 1.95% 0.50% to 2.25% -0.58% to 1.46% 2000 * * * Equity Income Advisor 2002 *** 1.40% to 1..85% *** 2001 *** *** *** 2000 *** *** *** Equity Opportunity 2002 0.13% 0.80% to 2.25% -30.85% to -29.82% 2001 0.07% 0.80% to 2.25% -14.67% to -13.67% 2000 * * * Equity Opportunity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231b Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Focus Value 2002 *** 0.90% to 2.25% *** 2001 *** *** *** 2000 *** *** *** Focus Value Advisor 2002 *** 1.65% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Fully Managed 2002 1.72% 0.80% to 2.25% -1.79% to -0.33% 2001 3.34% 0.80% to 2.25% 7.85% to 9.02% 2000 * * * Fully Managed Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Fundamental Growth Focus 2002 *** 0.90% to 2.15% *** 2001 *** *** *** 2000 *** *** *** Fundamental Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Global Franchise 2002 *** 0.80% to 2.25% *** 2001 *** *** *** 2000 *** *** ***
213c Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Global Franchise Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Growth 2002 - 0.50% to 2.25% -31.16% to -29.91% 2001 - 0.50% to 2.25% -31.55% to -30.59% 2000 * * * Growth Advisor 2002 *** 1.40% to 1.75% *** 2001 *** *** *** 2000 *** *** *** Hard Assets 2002 0.68% 0.50% to 2.25% -1.50% to 4.32% 2001 - 0.80% to 2.25% -13.82% to -12.84% 2000 * * * Hard Assets Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE 2002 *** 0.90% to 2.40% *** 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231d Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): International Equity 2002 0.75% 0.90% to 2.25% -18.76% to -16.93% 2001 - 0.90% to 2.10% -24.87% to -22.18% 2000 * * * International Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Internet Tollkeeper 2002 - 0.90% to 2.25% -39.50% to -38.61% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** Internet Tollkeeper Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Investors 2002 0.81% 0.90% to 2.25% -24.69% to -23.67% 2001 1.30% 0.90% to 2.25% -6.16% to -5.13% 2000 * * * Investors Advisor 2002 *** 1.65% to 1.85% *** 2001 *** *** *** 2000 *** *** *** J.P. Morgan Fleming Small Cap Equity 2002 *** 0.90% to 2.40% *** 2001 *** *** *** 2000 *** *** ***
231e Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): J.P. Morgan Fleming Small Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Janus Growth and Income 2002 0.45% 0.90% to 2.55% -21.75% to -20.16% 2001 1.02% 0.90% to 2.25% -11.18% to -10.34% 2000 * * * Janus Growth and Income Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Large Cap Value 2002 0.25% 0.50% to 2.25% -25.48% to -24.22% 2001 0.25% 0.50% to 2.25% -5.43% to -4.44% 2000 * * * Large Cap Value Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Limited Maturity Bond 2002 3.62% 0.50% to 2.25% 4.82% to 6.68% 2001 4.84% 0.50% to 2.25% 6.78% to 8.30% 2000 * * * Liquid Asset 2002 1.42% 0.50% to 2.55% -1.17% to 0.96% 2001 3.59% 0.50% to 2.55% 1.86% to 3.01% 2000 * * *
231f Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Liquid Asset Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Managed Global 2002 0.13% 0.50% to 2.25% -22.00% to -20.59% 2001 0.13% 0.50% to 2.25% -13.60% to -12.34% 2000 * * * Managed Global Advisor 2002 *** 1.75% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Mid-Cap Growth 2002 - 0.50% to 2.25% -49.97% to -49.07% 2001 0.37% 0.50% to 2.25% -25.09% to -24.25% 2000 * * * Mid-Cap Growth Advisor 2002 *** 1.40% to 1.80% *** 2001 *** *** *** 2000 *** *** *** Real Estate 2002 3.73% 0.50% to 2.25% -2.05% to 0.31% 2001 4.29% 0.50% to 2.25% 6.07% to 7.28% 2000 * * * Real Estate Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231g Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Research 2002 0.41% 0.80% to 2.55% -28.35% to -25.45% 2001 0.12% 0.80% to 2.25% -22.97% to -22.09% 2000 * * * Research Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Special Situations 2002 - 0.90% to 2.25% -27.58% to -26.61% 2001 0.37% 0.90% to 2.25% -6.87% to -6.19% 2000 * * * Special Situations Advisor 2002 *** 1.40% to 1.75% *** 2001 *** *** *** 2000 *** *** *** Strategic Equity 2002 - 0.80% to 2.25% -33.26% to -32.24% 2001 - 0.80% to 2.25% -22.66% to -21.78% 2000 * * * Strategic Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Total Return 2002 2.36% 0.50% to 2.55% -7.51% to -5.56% 2001 4.88% 0.50% to 2.55% -1.44% to -0.32% 2000 * * *
231h Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Total Return Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Value Equity 2002 0.69% 0.80% to 2.55% -20.82% to -17.70% 2001 0.85% 0.80% to 2.25% -6.21% to -5.21% 2000 * * * Value Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Van Kampen Growth and Income 2002 0.84% 0.50% to 2.25% -16.69% to -15.19% 2001 0.30% 0.50% to 2.25% -13.63% to -12.68% 2000 * * * Van Kampen Growth and Income Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** AIM VARIABLE INSURANCE FUNDS: AIM V.I. Dent Demographic Trends 2002 0.00% 0.95% to 2.55% -34.00% to -32.91% 2001 ** 0.95% to 2.25% ** 2000 ** ** **
231i Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- AIM VARIABLE INSURANCE FUNDS (CONTINUED): AIM V.I. Growth 2002 - 0.95% to 2.55% -32.94% to -31.79% 2001 1.09% 0.95% to 1.90% ** 2000 ** ** ** AIM V.I. Capital Appreciation 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** AIM V.I. Core Equity 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** AIM V.I. Premier Equity 2002 *** 0.75 % to 0.95% *** 2001 *** *** *** 2000 *** *** *** ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.: Alliance Bernstein Value 2002 0.17% 0.95% to 2.55% -15.23% to -13.83% 2001 ** 0.95% to 2.40% ** 2000 ** ** ** Alliance Growth and Income 2002 3.91% 0.95% to 2.55% -24.45% to -23.00% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Alliance Premier Growth 2002 - 0.95% to 2.55% -32.66% to -31.52% 2001 ** 0.95% to 2.40% ** 2000 ** ** **
231j Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND: Fidelity(R) VIP GrowtH 2002 0.02% 0.90% to 2.55% -32.32% to -30.79% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Fidelity(R) VIP Equity-Income 2002 1.09% 0.75% to 2.55% -18.95% to -17.69% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** Fidelity(R)VIP Contrafund(R) 2002 0.37% 0.75% to 2.55% -12.19% to -10.28% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Fidelity(R) VIP Overseas 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST: Franklin Small Cap Value Securities 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** GREENWICH STREET SERIES FUND: Greenwich Appreciation 2002 1.50% 1.25% to 1.40% -18.69% to -18.58% 2001 1.15% 1.25% to 1.40% -5.32% to -5.18% 2000 * * *
231k Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GALAXY VIP FUND: Galaxy VIP Asset Allocation 2002 2.08% 1.40% to 1.80% -17.44% to -17.17% 2001 2.29% 1.40% to 1.80% -9.13% to -8.72% 2000 * * * Galaxy VIP Equity 2002 0.23% 1.40% to 1.90% -29.17% to -28.66% 2001 - 1.40% to 1.80% '-19.72% to -19.28% 2000 * * * Galaxy VIP Growth and Income 2002 0.09% 1.40% to 1.90% -27.84% to -27.31% 2001 0.15% 1.40% to 1.80% -5.67% to -5.28% 2000 * * * Galaxy VIP High Quality Bond 2002 4.71% 1.40% to 1.80% 8.36% to 8.89% 2001 5.35% 1.40% to 1.80% 5.88% to 5.89% 2000 * * * Galaxy VIP Small Company Growth 2002 - 1.40% to 1.90% -34.18% to -33.87% 2001 - 1.40% to 1.90% -2.11% to -1.57% 2000 * * * ING GET FUND: ING GET Fund - Series N 2002 1.35% 0.95% to 1.90% -2.73% to -1.75% 2001 2.25% 0.95% to 1.90% ** 2000 ** ** **
231l Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING GET FUND (CONTINUED): ING GET Fund - Series P 2002 0.07% 0.75% to 2.55% -1.80% to -0.20% 2001 ** 0.95% to 2.55% ** 2000 ** ** ** ING GET Fund - Series Q 2002 2.51% 0.75% to 2.55% -0.70% to 1.20% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING GET Fund - Series R 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series S 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series T 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series U 2002 *** 0.75% to 2.20% *** 2001 *** *** *** 2000 *** *** ***
231m Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC.: ING Alger Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING American Century Small Cap Value 2002 *** 0.95% *** 2001 *** *** *** 2000 *** *** *** ING J.P. Morgan Mid Cap Value 2002 *** 0.95% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING MFS(R)Capital Opportunities (Initial Class) 2002 - 0.95% to 2.40% -37.64% to -32.29% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING MFS(R)Capital Opportunities (Sevice Class) 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING MFS(R) Global Growth 2002 *** 0.75% to 2.20% *** 2001 *** *** *** 2000 *** *** ***
231n Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC. (CONTINUED): ING OpCap Balanced Value 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING PIMCO Total Return 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Capital 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Investors Value 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Scudder International Growth 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING T. Rowe Price Growth Equity 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING UBS Tactical Asset Allocation Division 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** ***
231o Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC. (CONTINUED): ING Van Kampen Comstock Division 2002 *** 0.75% to 2.40% *** 2001 *** *** *** 2000 *** *** *** ING VARIABLE INSURANCE TRUST: ING VP Worldwide Growth 2002 0.02% 0.90% to 2.55% -27.02% to -25.42% 2001 - 0.90% to 2.25% -20.18% to -19.36% 2000 * * * ING VP BOND PORTFOLIO: ING VP Bond 2002 *** 0.80% to 2.25% *** 2001 *** *** *** 2000 *** *** *** ING VARIABLE PORTFOLIOS, INC.: ING VP Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING VP Index Plus LargeCap 2002 0.15% 0.75% to 2.55% -29.03% to -22.23% 2001 2.73% 0.95% to 1.90% ** 2000 ** ** ** ING VP Index Plus MidCap 2002 0.31% 0.75% to 2.55% -14.79 to -12.82% 2001 ** 0.95% to 1.90% ** 2000 ** ** **
231p Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING VARIABLE PORTFOLIOS, INC. (CONTINUED): ING VP Index Plus SmallCap 2002 0.36% 0.75% to 2.55% -15.89% to -13.95% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VP Small Company 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING VP Value Opportunity 2002 0.40% 0.75% to 2.55% -28.22% to -26.66% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VARIABLE PRODUCTS TRUST: ING VP Convertible 2002 3.17% 0.95% to 2.55% -9.37% to -7.79% 2001 -10.36% 0.95% to 2.20% ** 2000 ** ** ** ING VP Growth Opportunities 2002 - 0.75% to 2.25% -33.03% to -32.10% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** ING VP International Value 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** ***
231q Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING VARIABLE PRODUCTS TRUST (CONTINUED): ING VP Large Company Value 2002 1.28% 0.95% to 2.55% -24.40% to -23.16% 2001 0.92% 0.95% to 2.55% ** 2000 ** ** ** ING VP LargeCap Growth 2002 0.48% 0.95% to 2.25% -36.68% to -35.45% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VP MagnaCap 2002 1.02% 0.90% to 2.25% -24.73% to -23.74% 2001 1.36% 0.90% to 2.25% ** 2000 ** ** ** ING VP MidCap Opportunities 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING VP SmallCap Opportunities 2002 0.00% 0.75% to 2.25% -45.05% to -44.14% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** INVESCO VARIABLE INVESTMENT FUNDS, INC.: INVESCO VIF - Financial Services 2002 1.15% 0.90% to 2.55% -17.15% to -15.76% 2001 2.70% 0.95% to 2.25% ** 2000 ** ** **
231r Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. (CONTINUED): INVESCO VIF - Health Sciences 2002 - 0.90% to 2.55% -26.42% to -24.98% 2001 3.60% 0.95% to 2.55% ** 2000 ** ** ** INVESCO VIF - Leisure 2002 *** 0.95% to 2.25% *** 2001 *** *** *** 2000 *** *** *** INVESCO VIF - Utilities 2002 1.12% 0.95% to 2.55% -22.62% to -20.91% 2001 3.07% 0.95% to 1.90% ** 2000 ** ** ** JANUS ASPEN SERIES: Janus Aspen Series Balanced 2002 *** 0.75% to 1.10% *** 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Flexible Income 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** ***
231s Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- JANUS ASPEN SERIES (CONTINUED): Janus Aspen Series Worldwide Growth 2002 0.52% 0.75% to 2.55% -27.58% to 26.20% 2001 0.33% 0.95% to 2.40% ** 2000 ** ** ** OPPENHEIMER VARIABLE ACCOUNTS FUND: Oppenheimer Global Securities 2002 *** 0.75% to 1.10% *** 2001 *** *** *** 2000 *** *** *** Oppenheimer Strategic Bond 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** PIMCO VARIABLE INSURANCE TRUST: PIMCO High Yield 2002 8.20% 0.80% to 2.55% -4.80% to -1.63% 2001 7.91% 0.50% to 2.25% 0.30% to 1.57% 2000 * * * PIMCO StocksPLUS Growth and Income 2002 2.69% 0.80% to 2.25% -22.00% to -20.84% 2001 4.22% 0.80% to 2.25% -13.15% to -12.17% 2000 * * * PIONEER VARIABLE CONTRACTS TRUST: Pioneer Equity-Income VCT 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** ***
231t Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED): Pioneer Fund VCT 2002 1.08% 0.80% to 2.55% -21.47% to -19.87% 2001 0.91% 0.95% to 1.90% ** 2000 ** ** ** Pioneer Mid-Cap Value VCT 2002 0.56% 0.75% to 2.25% -13.36% to -12.03% 2001 ** 1.25% to 2.25% ** 2000 ** ** ** Pioneer Small Company VCT 2002 0.03% 0.95% to 2.55% -19.29% to -17.90% 2001 ** 0.95% to 2.55% ** 2000 ** ** ** PROFUNDS VP: ProFund VP Bull 2002 - 0.90% to 2.25% -25.68% to -24.66% 2001 ** 1.25% to 2.25% ** 2000 ** ** ** ProFund VP Europe 30 2002 - 0.90% to 2.25% -27.49% to -26.42% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** ProFund VP Small-Cap 2002 - 0.90% to 2.25% -24.20% to -23.15% 2001 ** 1.25% to 2.25% ** 2000 ** ** **
231u Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- PRUDENTIAL SERIES FUND, INC.: Prudential Jennison 2002 - 0.90% to 2.55% -33.33% to -31.81% 2001 - 0.90% to 2.25% -20.20% to -19.62% 2000 * * * Prudential SP Jennison International Growth 2002 - 0.90% to 2.55% -25.05% to -23.53% 2001 0.24% 0.90% to 2.25% -37.19% to -36.52% 2000 * * * PUTNAM VARIABLE TRUST: Putnam VT Growth and Income 2002 1.62% 0.95% to 2.55% -21.30% to -19.79% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** Putnam VT International Growth and Income 2002 0.28% 0.95% to 2.55% -16.21% to -14.65% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Putnam VT Voyager Fund II 2002 0.00% 0.95% to 2.55% -31.34% to -30.22% 2001 ** 0.95% to 2.40% ** 2000 ** ** ** TRAVELERS SERIES FUND INC.: Smith Barney High Income 2002 24.02% 1.25% to 1.40% -4.57% to -4.44% 2001 12.01% 1.25% to 1.40% -5.14% to -4.94% 2000 * * *
231v Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- TRAVELERS SERIES FUND INC. (CONTINUED): Smith Barney International All Cap Growth 2002 0.95% 1.25% to 1.40% -26.74% to -26.64% 2001 - 1.25% to 1.40% -32.13% to -32.03% 2000 * * * Smith Barney Large Cap Value 2002 3.74% 1.25% to 1.40% -26.46% to -26.30% 2001 1.39% 1.25% to 1.40% -9.45% to -9.33% 2000 * * * Smith Barney Money Market 2002 1.30% 1.25% to 1.40% -0.16% to 0.00% 2001 3.49% 1.25% to 1.40% 2.28% to 2.42% 2000 * * * UBS SERIES TRUST: UBS Tactical Allocation 2002 0.45% 0.95% to 2.55% -25.08% to -23.67% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** * Not provided for 2000. ** As this Division is new in 2001, this data is not meaningful and is therefore not presented. *** As this Division is new in 2002, this data is not meaningful and is therefore not presented
231w Statement of Additional Information WELLS FARGO ING LANDMARK DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY CONTRACT ISSUED BY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY This Statement of Additional Information is not a prospectus. The information contained herein should be read in conjunction with the Prospectus for the ING USA Annuity and Life Insurance Company Deferred Variable Annuity Contract, which is referred to herein. The Prospectus sets forth information that a prospective investor ought to know before investing. For a copy of the Prospectus, send a written request to ING USA Annuity and Life Insurance Company, Customer Service Center, P.O. Box 9271 Des Moines, IA 50306-9271 or telephone 1-800-366-0066. DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION: February XX, 2004 TABLE OF CONTENTS Item Page Introduction.............................................................. Description of ING USA Annuity and Life Insurance Company................. Separate Account B ....................................................... Safekeeping of Assets .................................................... The Administrator......................................................... Independent Auditors...................................................... Distribution of Contracts................................................. Performance Information................................................... IRA Partial Withdrawal Option............................................. Other Information......................................................... Financial Statements of ING USA Annuity and Life Insurance Company........ Financial Statements of Separate Account B................................ i Introduction This Statement of Additional Information provides background information regarding Separate Account B. Description of ING USA Annuity and Life Insurance Company ING USA Annuity and Life Insurance Company, formerly Golden American Life Insurance Company ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings, Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. Golden American's consolidated financial statements appear in the Statement of Additional Information. As of December 31, 2002, ING USA had approximately $999.1 million in stockholder's equity and approximately $17.6 billion in total assets, including approximately $11 billion of separate account assets. ING USA is authorized to do business in all jurisdictions except New York. ING USA offers variable insurance products. ING USA formed a subsidiary, First Golden American Life Insurance Company of New York ("First Golden"), which was licensed to do variable annuity business in the states of New York and Delaware. First Golden was merged into ReliaStar Life Insurance Company of New York, another wholly owned subsidiary of ING and an affiliate, on April 1, 2002. Separate Account B Separate Account B is a separate account established by the Company for the purpose of funding variable annuity contracts issued by the Company. The separate account is registered with the Securities and Exchange Commission (SEC) as a unit investment trust under the Investment Company act of 1940, as amended. Purchase payments to accounts under the contract may be allocated to one or more of the subaccounts. Each subaccount invests in the shares of only one of the funds offered under the contracts. We may make additions to, deletions from or substitutions of available investment options as permitted by law and subject to the conditions of the contract. The availability of the funds is subject to applicable regulatory authorization. Not all funds are available in all jurisdictions or under all contracts. Safekeeping of Assets ING USA acts as its own custodian for Separate Account B. The Administrator Effective January 1, 1997, Equitable and ING USA(formerly Golden American) became parties to a service agreement pursuant to which Equitable Life agreed to provide certain accounting, actuarial, tax, underwriting, sales, management and other services to ING USA. Expenses incurred by Equitable Life in relation to this service agreement were reimbursed by ING USA on an allocated cost basis. Equitable Life billed ING USA $570,000 and $309,000 pursuant to the service agreement in 2002 and 2001, respectively. Independent Auditors Ernst & Young LLP, independent auditors, performs annual audits of ING USA and Separate Account B. 1 Distribution of Contracts The offering of contracts under the prospectus associated with this Statement of Additional Information is continuous. Directed Services, Inc. ("DSI"), an affiliate of ING USA, acts as the principal underwriter (as defined in the Securities Act of 1933 and the Investment Company Act of 1940, as amended) of the variable insurance products (the "variable insurance products") issued by ING USA. The contracts are distributed through registered representatives of other broker-dealers who have entered into selling agreements with DSI. For the years ended 2002, 2001 and 2000 commissions paid by ING USA, including amounts paid by its affiliated Company, ReliaStar Life Insurance Company of New York, to DSI aggregated $287,208,000, $223,321,000 and $208,883,000, respectively. All commissions received by the distributor were passed through to the broker-dealers who sold the contracts. DSI is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478. Under a management services agreement, last amended in 1995, ING USA provides to DSI certain of its personnel to perform management, administrative and clerical services and the use of certain facilities. ING USA charges DSI for such expenses and all other general and administrative costs, first on the basis of direct charges when identifiable, and the remainder allocated based on the estimated amount of time spent by ING USA's employees on behalf of DSI. In the opinion of management, this method of cost allocation is reasonable. This fee, calculated as a percentage of average assets in the variable separate accounts, was $25,914,000, $23,138,000, and $21,296,000 for the years ended 2002, 2001, and 2000, respectively. Performance Information Performance Information for the subaccounts of Separate Account B, including yields, standard annual returns and other non-standard measures of performance of all subaccounts, may appear in reports or promotional literature to current or prospective owners. Such non-standard measures of performance will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Negative values are denoted by minus signs ("-"). Performance Information for measures other than total return does not reflect any applicable premium tax that can range from 0% to 3.5%. As described in the prospectus, three death benefit options are available. The following performance values reflect the election at issue of the Max 7 Enhanced Death Benefit, thus providing values reflecting the highest aggregate contract charges. In addition, the performance values reflect the selection of the most costly optional benefit rider. If one of the other death benefit options had been elected, or if another optional benefit rider or no rider had been elected, the historical performance values would be higher than those represented in the examples. SEC Standard Money Market Subaccount Yields Current yield for the Wells Fargo VT Money Market Fund will be based on the change in the value of a hypothetical investment (exclusive of capital changes or income other than investment income) over a particular 7-day period, less a pro rata share of subaccount expenses which includes deductions for the mortality and expense risk charge and the administrative charge accrued over that period (the "base period"), and stated as a percentage of the investment at the start of the base period (the "base period return"). The base period return is then annualized by multiplying by 365/7, with the resulting yield figure carried to at least the nearest hundredth of one percent. Calculation of "effective yield" begins with the same "base period return" used in the calculation of yield, which is then annualized to reflect weekly compounding pursuant to the following formula: Effective Yield = [(Base Period Return) +1)365/7] - 1 The current yield and effective yield of the Wells Fargo VT Money Market Fund for the 7-day period December 25, 2002 to December 31, 2002 were -0.84% and - -0.84% respectively. 2 SEC Standard 30-Day Yield for Non-Money Market Subaccounts Quotations of yield for the remaining subaccounts will be based on all investment income per subaccount earned during a particular 30-day period, less expenses accrued during the period ("net investment income"), and will be computed by dividing net investment income by the value of an accumulation unit on the last day of the period, according to the following formula: Yield = 2 x [((a - b)/(c x d) + 1)6 - 1] Where: [a] equals the net investment income earned during the period by the investment portfolio attributable to shares owned by a subaccount [b] equals the expenses accrued for the period (net of reimbursements) [c] equals the average daily number of units outstanding during the period based on the accumulation unit value [d] equals the value (maximum offering price) per accumulation unit value on the last day of the period Yield on subaccounts of Separate Account B is earned from the increase in net asset value of shares of the investment portfolio in which the subaccount invests and from dividends declared and paid by the investment portfolio, which are automatically reinvested in shares of the investment portfolio. SEC Standard Average Annual Total Return for All Subaccounts Quotations of average annual total return for any subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a contract over a period of one, five and 10 years (or, if less, up to the life of the subaccount), calculated pursuant to the formula: P(1+T)(n)=ERV Where: (1) [P] equals a hypothetical initial premium payment of $1,000 (2) [T] equals an average annual total return (3) [n] equals the number of years (4) [ERV] equals the ending redeemable value of a hypothetical $1,000 initial premium payment made at the beginning of the period (or fractional portion thereof) All total return figures reflect the deduction of the maximum sales load; the administrative charges, the mortality and expense risk charges and maximum optional benefit rider charge. The Securities and Exchange Commission (the "SEC") requires that an assumption be made that the contract owner surrenders the entire contract at the end of the one, five and 10 year periods (or, if less, up to the life of the security) for which performance is required to be calculated. This assumption may not be consistent with the typical contract owner's intentions in purchasing a contract and may adversely affect returns. Quotations of total return may simultaneously be shown for other periods, as well as quotations of total return that do not take into account certain contractual charges such as sales load. Except for the subaccounts which had not commenced operations as of December 31, 2002, Average Annual Total Return for the Subaccounts presented on a standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, administrative charges of 0.15%, contract administration charge annualized at 0.04%, living benefit rider charge annualized at 1.14%, the earnings multiplier benefit rider charge annualized at 0.30%, for the year ending December 31, 2002 were as follows: 3 Average Annual Total Return for Periods Ending 12/31/02-Standardized with Rider Charges
Inception 1 Year 5 Year 10 Year Inception Date - ---------------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio -25.65 n/a n/a -21.24 13-Jul-01 ING AIM Mid Cap Growth Portfolio -39.83 -8.62 n/a -1.68 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -38.25 -9.66 n/a -1.36 01-Apr-96 ING Developing World Portfolio -19.37 n/a n/a -10.96 19-Feb-98 ING Eagle Asset Value Equity Portfolio -25.57 -5.51 n/a 3.65 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -27.79 n/a n/a -17.11 02-Oct-00 ING Janus Growth and Income Portfolio -27.86 n/a n/a -18.10 02-Oct-00 ING Janus Special Equity Portfolio -34.23 n/a n/a -23.75 02-Oct-00 ING Jennison Equity Opportunities Portfolio -37.47 -8.88 1.64 2.35 04-May-92 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -28.46 01-May-02 Portfolio ING Marsico Growth Portfolio -37.77 -5.66 n/a -0.73 01-Apr-96 ING MFS Mid Cap Growth Portfolio -56.52 -4.25 n/a 4.48 07-Oct-94 ING MFS Research Portfolio -33.19 -5.82 n/a 3.67 07-Oct-94 ING PIMCO Core Bond Portfolio -0.50 -0.30 n/a 1.25 07-Oct-94 ING PIMCO High Yield Portfolio -10.12 n/a n/a -2.00 01-May-98 ING Salomon Brothers All Cap Portfolio -33.88 n/a n/a -8.33 01-Feb-00 ING Salomon Brothers Investors Portfolio -31.36 n/a n/a -10.26 01-Feb-00 ING T. Rowe Price Capital Appreciation -8.47 5.64 6.23 5.94 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -21.80 -1.71 2.82 3.59 25-Jan-89 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -18.53 01-May-02 ING Van Kampen Growth and Income Portfolio -23.33 -3.54 n/a 5.12 04-Oct-93 ING Van Kampen Real Estate Portfolio -8.73 0.24 7.91 5.96 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a -0.70 01-May-02 ING VP Growth Opportunities Portfolio -39.65 n/a n/a -37.21 01-May-01 ING VP MagnaCap Portfolio -31.35 n/a n/a -23.44 01-May-01 ING VP SmallCap Opportunities Portfolio -51.57 n/a n/a -42.44 01-May-01 ING VP Worldwide Growth Portfolio -33.13 n/a n/a -25.54 01-May-00 ProFund VP Bull -32.32 n/a n/a -26.54 01-May-01 ProFund VP Small Cap -30.81 n/a n/a -22.67 01-May-01
4 Average Annual Total Return for Periods Ending 12/31/02-Standardized without Rider Charges
Inception 1 Year 5 Year 10 Year Inception Date - ---------------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio -24.93 n/a n/a -20.43 13-Jul-01 ING AIM Mid Cap Growth Portfolio -39.16 -7.79 n/a -0.89 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -37.55 -8.79 n/a -0.59 01-Apr-96 ING Developing World Portfolio -18.62 n/a n/a -9.94 19-Feb-98 ING Eagle Asset Value Equity Portfolio -24.84 -4.61 n/a 4.42 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -27.07 n/a n/a -16.26 02-Oct-00 ING Janus Growth and Income Portfolio -27.14 n/a n/a -17.26 02-Oct-00 ING Janus Special Equity Portfolio -33.54 n/a n/a -22.89 02-Oct-00 ING Jennison Equity Opportunities Portfolio -36.78 -8.03 2.44 3.14 04-May-92 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -27.92 01-May-02 Portfolio ING Marsico Growth Portfolio -37.09 -4.91 n/a 0.01 01-Apr-96 ING MFS Mid Cap Growth Portfolio -55.92 -3.53 n/a 5.16 07-Oct-94 ING MFS Research Portfolio -32.49 -5.02 n/a 4.39 07-Oct-94 ING PIMCO Core Bond Portfolio 0.36 0.62 n/a 2.19 07-Oct-94 ING PIMCO High Yield Portfolio -9.30 n/a n/a -1.08 01-May-98 ING Salomon Brothers All Cap Portfolio -33.17 n/a n/a -7.49 01-Feb-00 ING Salomon Brothers Investors Portfolio -30.64 n/a n/a -9.40 01-Feb-00 ING T. Rowe Price Capital Appreciation -7.66 6.50 7.12 6.86 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -21.05 -0.84 3.69 4.49 25-Jan-89 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -17.96 01-May-02 ING Van Kampen Growth and Income Portfolio -22.59 -2.69 n/a 5.89 04-Oct-93 ING Van Kampen Real Estate Portfolio -7.94 1.18 8.70 6.88 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a -0.07 01-May-02 ING VP Growth Opportunities Portfolio -38.99 n/a n/a -36.38 01-May-01 ING VP MagnaCap Portfolio -30.65 n/a n/a -22.61 01-May-01 ING VP SmallCap Opportunities Portfolio -50.97 n/a n/a -41.65 01-May-01 ING VP Worldwide Growth Portfolio -32.43 n/a n/a -24.60 01-May-00 ProFund VP Bull -31.62 n/a n/a -25.71 01-May-01 ProFund VP Small Cap -30.11 n/a n/a -21.85 01-May-01
5 Non-Standard Average Annual Total Return for All Subaccounts Quotations of non-standard average annual total return for any subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a contract over a period of one, five and 10 years (or, if less, up to the life of the subaccount), calculated pursuant to the formula: P(1+T)(n)]=ERV Where: (1) [P] equals a hypothetical initial premium payment of $1,000 (2) [T] equals an average annual total return (3) [n] equals the number of years (4) [ERV] equals the ending redeemable value of a hypothetical $1,000 initial premium payment made at the beginning of the period (or fractional portion thereof) assuming certain loading and charges are zero. Except for subaccounts which had not commenced operations as of December 31, 2002, Average Annual Total Return for the subaccounts presented on a non-standardized basis, which includes deductions for the maximum mortality and expense risk charge for the Max 7 Enhanced Death Benefit of 2.10%, and administrative charges of 0.15%, a living benefit optional rider charge annualized at 1.14% and the earnings multiplier benefit rider charge annualized at 0.30%, but not the applicable surrender charge or the contract administrative charge for the year ending December 31, 2002 were as follows: Average Annual Total Return for Periods Ending 12/31/02-Non-Standardized with Rider Charges 6
Inception 1 Year 5 Year 10 Year Inception Date - ----------------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio -19.61 n/a n/a -16.71 13-Jul-01 ING AIM Mid Cap Growth Portfolio -33.79 -8.59 n/a -1.64 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -32.21 -9.63 n/a -1.33 01-Apr-96 ING Developing World Portfolio -13.33 n/a n/a -10.92 19-Feb-98 ING Eagle Asset Value Equity Portfolio -19.53 -5.47 n/a 3.67 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -21.75 n/a n/a -14.86 02-Oct-00 ING Janus Growth and Income Portfolio -21.82 n/a n/a -15.82 02-Oct-00 ING Janus Special Equity Portfolio -28.19 n/a n/a -21.26 02-Oct-00 ING Jennison Equity Opportunities Portfolio -31.43 -8.84 1.67 2.38 04-May-92 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -22.46 01-May-02 Portfolio ING Marsico Growth Portfolio -31.73 -5.63 n/a -0.71 01-Apr-96 ING MFS Mid Cap Growth Portfolio -50.48 -4.22 n/a 4.50 07-Oct-94 ING MFS Research Portfolio -27.15 -5.79 n/a 3.69 07-Oct-94 ING PIMCO Core Bond Portfolio 5.54 -0.26 n/a 1.29 07-Oct-94 ING PIMCO High Yield Portfolio -4.08 n/a n/a -1.97 01-May-98 ING Salomon Brothers All Cap Portfolio -27.84 n/a n/a -6.72 01-Feb-00 ING Salomon Brothers Investors Portfolio -25.32 n/a n/a -8.58 01-Feb-00 ING T. Rowe Price Capital Appreciation -2.43 5.67 6.27 5.97 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -15.76 -1.68 2.85 3.62 25-Jan-89 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -12.53 01-May-02 ING Van Kampen Growth and Income Portfolio -17.29 -3.50 n/a 5.15 04-Oct-93 ING Van Kampen Real Estate Portfolio -2.69 0.28 7.93 5.99 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a 5.30 01-May-02 ING VP Growth Opportunities Portfolio -33.61 n/a n/a -33.18 01-May-01 ING VP MagnaCap Portfolio -25.32 n/a n/a -19.90 01-May-01 ING VP SmallCap Opportunities Portfolio -45.53 n/a n/a -38.19 01-May-01 ING VP Worldwide Growth Portfolio -27.09 n/a n/a -23.13 01-May-00 ProFund VP Bull -26.28 n/a n/a -22.90 01-May-01 ProFund VP Small Cap -24.77 n/a n/a -19.15 01-May-01
7 Average Annual Total Return for Periods Ending 12/31/02-Non-Standardized without Rider Charges
Inception 1 Year 5 Year 10 Year Inception Date - ----------------------------------------------------------------------------------------------------------------------- Fidelity VIP Equity-Income Portfolio -18.89 n/a n/a -15.92 13-Jul-01 ING AIM Mid Cap Growth Portfolio -33.12 -7.75 n/a -0.86 02-Oct-95 ING Alliance Mid Cap Growth Portfolio -31.51 -8.76 n/a -0.57 01-Apr-96 ING Developing World Portfolio -12.58 n/a n/a -9.90 19-Feb-98 ING Eagle Asset Value Equity Portfolio -18.80 -4.57 n/a 4.44 03-Jan-95 ING FMR Diversified Mid Cap Portfolio -21.04 n/a n/a -14.03 02-Oct-00 ING Janus Growth and Income Portfolio -21.10 n/a n/a -15.00 02-Oct-00 ING Janus Special Equity Portfolio -27.50 n/a n/a -20.43 02-Oct-00 ING Jennison Equity Opportunities Portfolio -30.74 -8.00 2.46 3.17 04-May-92 ING JP Morgan Fleming Small Cap Equity n/a n/a n/a -21.92 01-May-02 Portfolio ING Marsico Growth Portfolio -31.05 -4.88 n/a 0.03 01-Apr-96 ING MFS Mid Cap Growth Portfolio -49.88 -3.51 n/a 5.18 07-Oct-94 ING MFS Research Portfolio -26.45 -4.98 n/a 4.41 07-Oct-94 ING PIMCO Core Bond Portfolio 6.40 0.66 n/a 2.22 07-Oct-94 ING PIMCO High Yield Portfolio -3.26 n/a n/a -1.05 01-May-98 ING Salomon Brothers All Cap Portfolio -27.13 n/a n/a -5.91 01-Feb-00 ING Salomon Brothers Investors Portfolio -24.60 n/a n/a -7.75 01-Feb-00 ING T. Rowe Price Capital Appreciation -1.62 6.53 7.15 6.88 25-Jan-89 Portfolio ING T. Rowe Price Equity Income Portfolio -15.02 -0.80 3.72 4.51 25-Jan-89 ING Van Kampen Global Franchise Portfolio n/a n/a n/a -11.96 01-May-02 ING Van Kampen Growth and Income Portfolio -16.55 -2.66 n/a 5.92 04-Oct-93 ING Van Kampen Real Estate Portfolio -1.90 1.23 8.73 6.91 25-Jan-89 ING VP Bond Portfolio n/a n/a n/a 5.93 01-May-02 ING VP Growth Opportunities Portfolio -32.95 n/a n/a -32.39 01-May-01 ING VP MagnaCap Portfolio -24.61 n/a n/a -19.09 01-May-01 ING VP SmallCap Opportunities Portfolio -44.93 n/a n/a -37.44 01-May-01 ING VP Worldwide Growth Portfolio -26.39 n/a n/a -22.23 01-May-00 ProFund VP Bull -25.58 n/a n/a -22.09 01-May-01 ProFund VP Small Cap -24.07 n/a n/a -18.35 01-May-01
8 Performance Information for a subaccount may be compared, in reports and promotional literature, to: (i) the Standard & Poor's 500 Stock Index ("S&P 500"), Dow Jones Industrial Average ("DJIA"), Donoghue Money Market Institutional Averages, or other indices that measure performance of a pertinent group of securities so that investors may compare a subaccount's results with those of a group of securities widely regarded by investors as representative of the securities markets in general; (ii) other groups of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services, a widely used independent research firm which ranks mutual funds and other investment companies by overall performance, investment objectives, and assets, or tracked by other services, companies, publications, or persons who rank such investment companies on overall performance or other criteria; and (iii) the Consumer Price Index (measure for inflation) to assess the real rate of return from an investment in the contract. Unmanaged indices may assume the reinvestment of dividends but generally do not reflect deductions for administrative and management costs and expenses. Performance Information for any subaccount reflects only the performance of a hypothetical contract under which contract value is allocated to a subaccount during a particular time period on which the calculations are based. Performance Information should be considered in light of the investment objectives and policies, characteristics and quality of the investment portfolio of the Trust in which the Separate Account B subaccounts invest, and the market conditions during the given time period, and should not be considered as a representation of what may be achieved in the future. Reports and promotional literature may also contain other information including the ranking of any subaccount derived from rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by other rating services, companies, publications, or other persons who rank separate accounts or other investment products on overall performance or other criteria. Published Ratings From time to time, the rating of ING USA as an insurance company by A.M. Best may be referred to in advertisements or in reports to contract owners. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best's Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. Best's ratings range from A+ + to F. An A++ and A+ ratings mean, in the opinion of A.M. Best, that the insurer has demonstrated the strongest ability to meet its respective policyholder and other contractual obligations. Accumulation Unit Value The calculation of the Accumulation Unit Value ("AUV") is discussed in the prospectus for the Contracts under Condensed Financial Information. Note that in your Contract, accumulation unit value is referred to as the Index of Investment Experience. The following illustrations show a calculation of a new AUV and the purchase of Units (using hypothetical examples). Note that the examples below are calculated for a Contract issued with the death benefit option with the highest mortality and expense risk charge. The mortality and expense risk charge associated with other death benefit options are lower than that used in the examples and would result in higher AUV's or contract values. 9 Illustration of Calculation of AUV Example 1. 1. AUV, beginning of period $ 10.00 2. Value of securities, beginning of period $ 10.00 3. Change in value of securities $ 0.10 4. Gross investment return (3) divided by (2) 0.01 5. Less daily mortality and expense charge 0.00004280 6. Less asset based administrative charge 0.00000411 7. Net investment return (4) minus (5) minus (6) 0.009953092 8. Net investment factor (1.000000) plus (7) 1.009953092 9. AUV, end of period (1) multiplied by (8) $ 10.09953092 Illustration of Purchase of Units (Assuming no state premium tax) Example 2. 1. Initial premium payment $ 1,000 2. AUV on effective date of purchase (see Example 1) $ 10.00 3. Number of units purchased (1) divided by (2) 100 4. AUV for valuation date following purchase (see Example 1) $ 10.09953092 5. Contract Value in account for valuation date following purchase (3) multiplied by (4) $ 1,009.95 IRA Partial Withdrawal Option If the contract owner has an IRA contract and will attain age 70 1/2 in the current calendar year, distributions will be made in accordance with the requirements of Federal tax law. This option is available to assure that the required minimum distributions from qualified plans under the Internal Revenue Code (the "Code") are made. Under the Code, distributions must begin no later than April 1st of the calendar year following the calendar year in which the contract owner attains age 70 1/2. If the required minimum distribution is not withdrawn, there may be a penalty tax in an amount equal to 50% of the difference between the amount required to be withdrawn and the amount actually withdrawn. Even if the IRA Partial Withdrawal Option is not elected, distributions must nonetheless be made in accordance with the requirements of Federal tax law. ING USA notifies the contract owner of these regulations with a letter mailed in the calendar year in which the contract owner reaches age 70 1/2 which explains the IRA Partial Withdrawal Option and supplies an election form. If electing this option, the owner specifies whether the withdrawal amount will be based on a life expectancy calculated on a single life basis (contract owner's life only) or, if the contract owner is married, on a joint life basis (contract owner's and spouse's lives combined). The contract owner selects the payment mode on a monthly, quarterly or annual basis. If the payment mode selected on the election form is more frequent than annually, the payments in the first calendar year in which the option is in effect will be based on the amount of payment modes remaining when ING USA receives the completed election form. ING USA calculates the IRA Partial Withdrawal amount each year based on the minimum distribution rules. We do this by dividing the contract value by the life expectancy. In the first year withdrawals begin; we use the contract value as of the date of the first payment. Thereafter, we use the contract value on December 31st of each year. The life expectancy is recalculated each year. Certain minimum distribution rules govern payouts if the designated beneficiary is other than the contract owner's spouse and the beneficiary is more than ten years younger than the contract owner. Other Information Registration statements have been filed with the SEC under the Securities Act of 1933, as amended, with respect to the Contracts discussed in this Statement of Additional Information. Not all of the information set forth in the registration statements, amendments and exhibits thereto has been included in this Statement of Additional Information. Statements contained in this Statement of Additional Information concerning the content of the Contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC. 10 Consolidated Financial Statements of Golden American Life Insurance Company The consolidated audited financial statements of Golden American Life Insurance Company are listed below and are included in this Statement of Additional Information: Report of Independent Auditors Audited Consolidated Financial Statements of Golden American Life Insurance Company Consolidated Income Statements for the years ended December 31, 2002, 2001 and 2000 Consolidated Balance Sheets as of December 31, 2002 and 2001 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2002, 2001 and 2000 Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000 Unaudited Consolidated Financial Statements of ING USA Annuity and Life Insurance Company Consolidated Income Statements for the quarter ended September 30, 2003 Consolidated Balance Sheets as of the quarter ended September 30, 2003 Consolidated Statements of Changes in Shareholder's Equity for the quarter ended September 30, 2003 Consolidated Statements of Cash Flows for the quarter ended September 30, 2003 Notes to Consolidated Financial Statements Financial Statements of Separate Account B The audited financial statements of Separate Account B are listed below and are included in this Statement of Additional Information: Report of Independent Auditors Audited Financial Statements of Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities as of December 31, 2002 Statement of Operations for the year ended December 31, 2002 Statements of Changes in Net Assets for the years ended December 31, 2002 and 2001 Unaudited Financial Statements of ING USA Annuity and Life Insurance Company Separate Account B Statement of Assets and Liabilities as of quarter ended September 30, 2003 Statement of Operations for the quarter ended September 30, 2003 Statement of Changes in Net Assets for the quarter ended September 30, 2003 Notes to Financial Statements 11 {Separate Account B Third Quarter 2003 Financials - To be added by amendment} {Golden American Life Insurance Company Third Quarter 2003 Financials - To be added by amendment} FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page ------------ Report of Independent Auditors .................................... F-2 Consolidated Financial Statements: Consolidated Income Statements for the years ended December 31, 2002, 2001, and 2000............................................. F-3 Consolidated Balance Sheets as of December 31, 2002 and 2001..... F-4 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2002, 2001, and 2000................ F-5 Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001, and 2000................................................... F-6 Notes to Consolidated Financial Statements....................... F-7 F-1 REPORT OF INDEPENDENT AUDITORS The Board of Directors Golden American Life Insurance Company We have audited the accompanying consolidated balance sheets of Golden American Life Insurance Company and Subsidiary as of December 31, 2002 and 2001, and the related income statements, statements of changes in shareholder's equity, and statements of cash flows for each of the three years in the period ended December 31, 2002. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 referred to above present fairly, in all material respects, the consolidated financial position of Golden American Life Insurance Company at December 31, 2002 and 2001, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. As discussed in Note 1 to the financial statements, the Company changed the accounting principle for goodwill and other intangible assets effective January 1, 2002. /s/ Ernst & Young LLP Atlanta, Georgia March 21, 2003 F-2
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED INCOME STATEMENTS (Millions) For the Years Ended December 31, ------------------------------------------------ 2002 2001 2000 ------------- -------------- ------------- Revenues: Fee income $ 204.0 $ 188.9 $ 167.9 Net investment income 197.7 94.4 64.1 Net realized capital gains (losses) 4.2 (6.5) (6.6) Other income 3.5 - - ------------- -------------- ------------- Total revenue 409.4 276.8 225.4 ------------- -------------- ------------- Benefits, losses and expenses: Benefits: Interest credited and other benefits to policyholders 276.5 209.0 199.9 Underwriting, acquisition, and insurance expenses: General expenses 139.7 119.9 89.5 Commissions 288.7 232.4 213.7 Policy acquisition costs deferred (292.2) (128.2) (168.4) Amortization: Deferred policy acquisition costs and value of business acquired 127.8 49.6 60.0 Goodwill - 4.2 4.2 Other: Expense and charges reimbursed under modified coinsurance agreements (104.9) (225.6) (225.8) Interest expense 16.0 19.4 19.9 ------------- -------------- ------------- Total benefits, losses and expenses 451.6 280.7 193.0 ------------- -------------- ------------- Income (loss) before income taxes (42.2) (3.9) 32.4 Income tax expense (benefit) (12.5) 0.1 13.2 ------------- -------------- ------------- Income (loss) before cumulative effect of change in accounting principle (29.7) (4.0) 19.2 Cumulative effect of change in accounting principle (135.3) - - ------------- -------------- ------------- Net income (loss) $ (165.0) $ (4.0) $ 19.2 ============= ============== ============= See Notes to Consolidated Financial Statements F-3
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED BALANCE SHEETS (Millions, except share data) As of December 31, ------------------------------------- Assets 2002 2001 ------ ----------------- ---------------- Investments: Fixed maturities, available for sale, at fair value (amortized cost of $4,720.1 at 2002 and $1,982.5 at 2001) $ 4,936.4 $1,994.9 Equity securities, at fair value: Investment in mutual funds (cost of $22.9 at 2002) 19.0 - Mortgage loans on real estate 482.4 213.9 Policy loans 16.0 14.8 Short-term investments 2.2 10.1 ----------------- ---------------- Total investments 5,456.0 2,233.7 Cash and cash equivalents 148.5 195.7 Accrued investment income 61.9 22.8 Reinsurance recoverable 196.9 56.0 Deferred policy acquisition costs 678.0 709.0 Value of business acquired 8.5 20.2 Goodwill (net of accumulated amortization of $17.6 at 2001) - 151.3 Other assets 5.3 23.7 Assets held in separate accounts 11,029.3 10,958.2 ----------------- ---------------- Total assets $ 17,584.4 $14,370.6 ================= ================ Liabilities and Shareholder's Equity ------------------------------------ Policy liabilities and accruals: Future policy benefits and claims reserves $ 5,159.1 $2,185.3 ----------------- ---------------- Total policy liabilities and accruals 5,159.1 2,185.3 Surplus notes 170.0 245.0 Due to affiliates - 25.1 Payables for securities purchased - 36.4 Current income taxes 42.4 - Deferred income taxes 79.8 12.6 Dollar roll obligations 40.0 3.9 Other borrowed money - 1.4 Other liabilities 64.7 84.9 Liabilities related to separate accounts 11,029.3 10,958.2 ----------------- ---------------- Total liabilities 16,585.3 13,552.8 ----------------- ---------------- Shareholder's equity: Common stock (250,000 shares authorized, issued and outstanding; $10.00 per share par value) 2.5 2.5 Additional paid-in capital 1,128.4 780.4 Accumulated other comprehensive income 2.1 3.8 Retained earnings (deficit) (133.9) 31.1 ----------------- ---------------- Total shareholder's equity 999.1 817.8 ----------------- ---------------- Total liabilities and shareholder's equity $ 17,584.4 $ 14,370.6 ================= ================ See Notes to Consolidated Financial Statements F-4
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Millions) Accumulated Total Additional Other Retained Share- Common Paid-in- Comprehensive Earnings holder's Stock Paid-in-Capit Income (loss) (Deficit) Equity ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 1999 $ 2.5 $ 468.6 $ (9.2) $ 15.9 $ 477.8 Contribution of capital 115.0 115.0 Comprehensive income: Net income - - - 19.2 19.2 Other comprehensive income net of tax: Unrealized gain on securities ($9.8 pretax) - - 5.1 - 5.1 ------------ Comprehensive income 24.3 ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2000 2.5 583.6 (4.1) 35.1 617.1 Contribution of capital 196.8 196.8 Comprehensive income: Net (loss) - - - (4.0) (4.0) Other comprehensive income net of tax: Unrealized gain on securities ($12.2 pretax) - - 7.9 - 7.9 ------------ Comprehensive income 3.9 ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2001 2.5 780.4 3.8 31.1 817.8 Contribution of capital 356.3 356.3 Other (8.3) (8.3) Comprehensive income: Net (loss) - - - (165.0) (165.0) Other comprehensive income net of tax: Unrealized (loss) on securities ($(2.6) pretax) - - (1.7) - (1.7) ------------ Comprehensive (loss) (166.7) ------------ ------------- ------------------ ----------- ------------ Balance at December 31, 2002 $ 2.5 $ 1,128.4 $ 2.1 $ (133.9) $ 999.1 ============ ============= ================== =========== ============ See Notes to Consolidated Financial Statements F-5
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A wholly-owned subsidiary of Equitable Life Insurance Company of Iowa) CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions) For the years Ended December 31, 2002 2001 2000 ---------------- ------------- --------------- Cash Flows from Operating Activities: Net income (loss) $ (165.0) $ (4.0) $ 19.2 Adjustments to reconcile net income to net cash provided by operating activities: Interest credited and charges on interest sensitive products 282.2 191.0 183.1 Net realized capital (gains) losses (4.2) 6.5 6.6 Accrued investment income (39.5) (13.2) 1.6 Increase in guaranteed benefits reserve 107.1 28.2 26.7 Acquisition costs deferred (292.2) (128.2) (168.4) Amortization of deferred policy acquisition costs 121.2 45.2 55.2 Amortization of value of business acquired 6.6 4.4 4.8 Impairment of Goodwill 151.3 - - Change in other assets and liabilities 21.3 110.6 (69.4) Provision for deferred income taxes (85.7) (0.6) 13.3 ---------------- ------------- --------------- Net cash provided by operating activities 103.1 239.9 72.7 Cash Flows from Investing Activities: Proceeds from the sale of: Fixed maturities available for sale 7,297.1 880.7 205.1 Equity securities 7.8 6.9 6.1 Mortgages 285.0 136.0 12.7 Acquisition of investments: Fixed maturities available for sale (10,068.3) (2,070.8) (154.0) Equity securities (22.8) - - Short-term investments - (4.7) (5.3) Mortgages (553.7) (250.3) (12.9) Increase (decrease) in policy loans (1.2) (1.5) 0.8 Increase (decrease) in property and equipment 1.1 1.2 (3.2) Proceeds from sale of interest in subsidiary 27.7 - - Loss on valuation of interest in subsidiary 3.0 - - Other 0.6 - - ---------------- ------------- --------------- Net cash (used for) provided by investing activities (3,023.7) (1,302.5) 49.3 Cash Flows from Financing Activities: Deposits and interest credited for investment contracts 3,818.5 1,933.1 801.8 Maturities and withdrawals from insurance contracts (171.2) (134.8) (141.5) Transfers from (to) separate accounts (1,053.8) (902.9) (825.8) Proceeds of notes payable - 3.1 67.2 Repayment of notes payable (1.4) (1.7) (68.6) Proceeds from reciprocal loan agreement borrowings - 69.3 178.9 Repayment of reciprocal loan agreement borrowings (75.0) (69.3) (178.9) Contributions of capital by parent 356.3 196.8 115.0 ---------------- ------------- --------------- Net cash provided by (used for) financing activities 2,873.4 1,093.6 (51.9) ---------------- ------------- --------------- Net increase (decrease) in cash and cash equivalents (47.2) 31.0 70.1 Cash and cash equivalents, beginning of period 195.7 164.7 94.6 ---------------- ------------- --------------- Cash and cash equivalents, end of period $ 148.5 $ 195.7 $ 164.7 ================ ============= =============== See Notes to Consolidated Financial Statements F-6
GOLDEN AMERICAN LIFE INSURANCE COMPANY AND SUBSIDIARY (A WHOLLY-OWNED SUBSIDIARY OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION Golden American Life Insurance Company ("Golden American"), a wholly-owned subsidiary of Equitable Life Insurance Company of Iowa ("Equitable Life" or the "Parent"), is a stock life insurance company organized under the laws of the State of Delaware. Golden American was originally incorporated under the laws of the State of Minnesota on January 2, 1973, in the name of St. Paul Life Insurance Company. Equitable Life is a wholly-owned subsidiary of Lion Connecticut Holding Inc. ("Lion Connecticut") which is an indirect wholly-owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. Golden American is authorized to do business in the District of Columbia and all states except New York. Golden American's wholly-owned life insurance subsidiary, First Golden American Life Insurance Company of New York ("First Golden,") and collectively with Golden American, the ("Company"), is licensed as a life insurance company under the laws of the States of New York and Delaware. There is no public trading market for the Registrant's of common stock. Formerly, from October 24, 1997, until December 30, 2001, Equitable of Iowa Company, Inc. ("EIC" or "Former Holding Company"), directly owned 100% of Golden American's stock. On December 3, 2001, the Board of Directors of the Former Holding Company approved a plan to contribute its holding of stock of Golden American to another wholly-owned subsidiary, Equitable Life. The contribution of stock occurred on December 31, 2001, following approval granted by the Insurance Department of the State of Delaware. There is no public trading market for the Registrant's common stock. As of April 1, 2002, Golden American sold First Golden to its sister company, ReliaStar Life Insurance Company ("ReliaStar"). ReliaStar Life, the parent of Security-Connecticut Life Insurance Company ("Security-Connecticut") which in turn is the parent of ReliaStar Life Insurance Company of New York ("RLNY"), merged the First Golden business into RLNY operations and dissolved First Golden at book value for $27.7 million in cash and a receivable totaling $0.2 million from RLNY. The receivable from RLNY was assumed by Equitable Life, and ultimately by ING. The consideration was based on First Golden's statutory-basis book value. RLNY's payable to the Company was assumed by ING and subsequently forgiven. Golden American realized a loss of $3.0 million related to the sale of First Golden, which was recorded as a capital transaction. Approval for the merger was obtained from the Insurance Departments of the States of New York and Delaware. Statement of Financial Accounting Standards ("FAS") No. 141 "Business Combinations" excludes transfers of net assets or exchanges of shares between entities under common control and is therefore covered by Accounting Principles Board ("APB") Opinion No. 16 "Business Combinations." Since RLNY presented combined results of operations including First Golden activity as of the beginning of the period ending December 31, 2002. The first three months of First Golden activity is not reflected in the Golden statement of financial position or other financial information for the period ended December 31, 2002, as the amounts were not material. F-7 DESCRIPTION OF BUSINESS The Company offers a portfolio of variable and fixed insurance products designed to meet customer needs for a tax-advantaged saving for retirement and protection from death. The Company's variable and fixed insurance products are marketed by broker/dealers, financial institutions, and insurance agents. The Company's primary customers are consumers and corporations. NEW ACCOUNTING STANDARDS ACCOUNTING FOR GOODWILL AND INTANGIBLE ASSETS In June 2001, the Financial Accounting Standards Board ("FASB") issued FAS No. 142, "Goodwill and Other Intangible Assets," effective for fiscal years beginning after December 15, 2001. Under FAS No. 142, goodwill and intangible assets deemed to have indefinite lives will no longer be amortized but will be subject to annual impairment tests. Other intangible assets are still amortized over their estimated useful lives. The Company adopted the new standard effective January 1, 2002. As required under FAS No. 142, the Company completed the first of the required impairment tests as of January 1, 2002. Step one of the impairment test was a screen for potential impairment, while step two measured the amount of the impairment. All of the Company's operations fall under one reporting unit, USFS, due to the consolidated nature of the Company's operations. Step one of the impairment test required the Company to estimate the fair value of the reporting unit and compare the estimated fair value to its carrying value. The Company determined the estimated fair value utilizing a discounted cash flow approach and applying a discount rate equivalent to the Company's weighted average cost of capital. Fair value was determined to be less than carrying value which required the Company to complete step two of the test. In step two, the Company allocated the fair value of the reporting unit determined in step one to the assets and liabilities of the reporting unit resulting in an implied fair value of goodwill of zero. The comparison of the fair value amount allocated to goodwill and the carrying value of goodwill resulted in an impairment loss of $135.3 million net of taxes, which represents the entire carrying amount of goodwill, net of accumulated amortization. This impairment charge is shown as a change in accounting principle on the Consolidated Statements of Income. Application of the nonamortization provision (net of tax) of the new standard resulted in an increase in net income of $3.8 million for the twelve months ended December 31, 2002. Had the Company been accounting for goodwill under FAS No. 142 for all periods presented, the Company's net (loss) income would have been as follows: (Millions) Year ended Year ended December 31, 2001 December 31, 2001 ------------------------------------------------------------------------ Reported net income (loss) $ (4.0) $ 19.2 Add back goodwill amortization, net of tax 3.8 3.8 ------------------------------------------------------------------------ Adjusted net income $ (0.2) $ 23.0 ======================================================================== F-8 ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In June 1998, the FASB issued FAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended and interpreted by FAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement 133, FAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities - an Amendment of FASB 133, and certain FAS 133 implementation issues." This standard, as amended, requires companies to record all derivatives on the balance sheet as either assets or liabilities and measure those instruments at fair value. The manner in which companies are to record gains or losses resulting from changes in the fair values of those derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. FAS No. 133 was effective for the Company's financial statements beginning January 1, 2001. Adoption of FAS No. 133 did not have a material effect on the Company's financial position or results of operations given the Company's limited derivative and embedded derivative holdings. The Company occasionally purchases a financial instrument that contains a derivative that is "embedded" in the instrument. In addition, the Company's insurance products are reviewed to determine whether they contain an embedded derivative. The Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument or insurance product (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current period earnings or the Company is unable to reliably identify and measure the embedded derivative for separation from its host contracts, the entire contract is carried on the balance sheet at fair value and is not designated as a hedging instrument. The Company did not have embedded derivatives at December 31, 2002. GUARANTEES In November 2002, the FASB issued Interpretation No.45 ("FIN 45"), "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others," to clarify accounting and disclosure requirements relating to a guarantor's issuance of certain types of guarantees, or groups of similar guarantees, even if the likelihood of the guarantor's having to make any payments under the guarantee is remote. The disclosure provisions are effective for financial statements for fiscal years ended after December 15, 2002. For certain guarantees, the interpretation also requires that guarantors recognize a liability equal to the fair value of the guarantee upon its issuance. This initial recognition and measurement provision is to be applied only on a prospective basis to guarantees issued or modified after December 31, 2002. The Company has performed an assessment of its guarantees and believes that all of its guarantees are excluded from the scope of this interpretation. In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"), Consolidation of Variable Interest Entities ("VIE"), an interpretation of Accounting Research Bulletin ("ARB") No. 51. This Interpretation addresses consolidation by business F-9 enterprises of variable interest entities, which have one or both of the following characteristics: a) insufficient equity investment at risk, or b) insufficient control by equity investors. This guidance is effective for VIEs created after January 31, 2003 and for existing VIEs as of July 1, 2003. An entity with variable interests in VIEs created before February 1, 2003 shall apply the guidance no later than the beginning of the first interim or annual reporting period beginning after June 15, 2003. In conjunction with the issuance of this guidance, the Company conducted a review of its involvement with VIEs and does not believe it has any significant investments or ownership in VIEs. FUTURE ACCOUNTING STANDARDS EMBEDDED DERIVATIVES The FASB issued FAS No.133, "Accounting for Derivative Instruments and Hedging Activities" ("FAS 133") in 1998 and continues to issue guidance for implementation through its Derivative Implementation Group ("DIG"). DIG recently released a draft of FASB Statement 133 Implementation Issue B36 "Embedded Derivatives: Bifurcation of a Debt Instrument That Incorporates Both Interest Rate Risk and Credit Risk Exposures That are Unrelated or Only Partially Related to the Creditworthiness of the Issuer of That Instrument" ("DIG B36"). Under this interpretation, modified coinsurance and coinsurance with funds withheld reinsurance agreements as well as other types of receivables and payables where interest is determined by reference to a pool of fixed maturity assets or total return debt index may be determined to contain bifurcatable embedded derivatives. The required date of adoption of DIG B36 has not been determined. If the guidance is finalized in its current form, the Company has determined that certain of its existing reinsurance receivables (payables), investments or insurance products contain embedded derivatives that may require bifurcation. The Company has not yet completed its evaluation of the potential impact, if any, on its consolidated financial positions, results of operations, or cash flows. 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 affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates. RECLASSIFICATIONS Certain reclassifications have been made to prior year financial information to conform to the current year classifications. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, money market instruments and other debt issues with a maturity of 90 days or less when purchased. F-10 INVESTMENTS All of the Company's fixed maturity and equity securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized gains and losses on these securities are included directly in shareholder's equity, after adjustment for related charges in deferred policy acquisition costs, value of business acquired, and deferred income taxes. The Company analyzes the general account investments to determine whether there has been an other than temporary decline in fair value below the amortized cost basis in accordance with FAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities." Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a debt security will not be collected, an other than temporary impairment is considered to have occurred. When a decline in fair value is determined to be other than temporary, the individual security is written down to fair value and the loss is accounted for as a realized loss. Realized capital gains and losses on all other investments are reflected in the Company's results of operations. Unrealized capital gains and losses on all other investments are reflected in shareholder's equity, net of related income taxes. Purchases and sales of fixed maturities and equity securities (excluding private placements) are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Fair values for fixed maturity securities are obtained from independent pricing services or broker/dealer quotations. Fair values for privately placed bonds are determined using a matrix-based model. The matrix-based model considers the level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. The fair values for equity securities are based on quoted market prices. For equity securities not actively traded, estimated fair values are based upon values of issues of comparable yield and quality or conversion value where applicable. F-11 The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities. The collateral is deposited by the borrower with a lending agent, and retained and invested by the lending agent according to the Company's guidelines to generate additional income. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. Reverse dollar repurchase agreement and reverse repurchase agreement transactions are accounted for as collateralized borrowings, where the amount borrowed is equal to the sales price of the underlying securities. The investment in mutual funds represents an investment in mutual funds managed by the Company, and is carried at fair value. Mortgage loans on real estate are reported at amortized cost less impairment writedowns. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the present value of expected cash flows from the loan, discounted at the loan's effective interest rate, or to the loan's observable market price, or the fair value of the underlying collateral. The carrying value of the impaired loans is reduced by establishing a permanent writedown charged to realized loss. Policy loans are carried at unpaid principal balances, net of impairment reserves. Short-term investments, consisting primarily of money market instruments and other fixed maturity securities issues purchased with an original maturity of 91 days to one year, are considered available for sale and are carried at fair value, which approximates amortized cost. On occasion, the Company sells call options written on underlying securities that are carried at fair value. Changes in fair value of these options are recorded in net realized capital gains or losses. DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED Deferred Policy Acquisition Costs ("DAC") is an asset, which represents certain costs of acquiring certain insurance business, which are deferred and amortized. These costs, all of which vary with and are primarily related to the production of new and renewal business, consist principally of commissions, certain underwriting and contract issuance expenses, and certain agency expenses. Value of Business Acquired ("VOBA") is an asset, which represents the present value of estimated net cash flows embedded in the Company's contracts, which existed at the time the Company was acquired by ING. DAC and VOBA are evaluated for recoverability at each balance sheet date and these assets would be reduced to the extent that gross profits are inadequate to recover the asset. F-12 The amortization methodology varies by product type based upon two accounting standards: FAS No. 60, "Accounting and Reporting by Insurance Enterprises" ("FAS No. 60") and FAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and Realized Gains and Losses from the Sale of Investments" ("FAS No. 97"). Under FAS No. 60, acquisition costs for traditional life insurance products, which primarily include whole life and term life insurance contracts, are amortized over the premium payment period in proportion to the premium revenue recognition. Under FAS No. 97, acquisition costs for universal life and investment-type products, which include universal life policies and fixed and variable deferred annuities, are amortized over the life of the blocks of policies (usually 25 years) in relation to the emergence of estimated gross profits from surrender charges, investment margins, mortality and expense margins, asset-based fee income, and actual realized gains (losses) on investments. Amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised. Activity for the year-ended December 31, 2002 within VOBA was as follows: (Millions) ------------------------------------------------------------------- Balance at December 31,2001 $ 20.2 Adjustment for FAS No. 115 (5.1) Additions (3.3) Interest accrued at 7% 1.3 Amortization (4.6) ------------------------------------------------------------------- Balance at December 31,2002 $ 8.5 =================================================================== The estimated amount of VOBA to be amortized, net of interest, over the next five years is $3.0 million, $2.0 million, $1.5 million, $1.5 million and $1.1 million and $1.0 million for the years 2003, 2004, 2005, 2006 and 2007, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results. As part of the regular analysis of DAC/VOBA, at the end of third quarter 2002, the Company unlocked its assumptions by resetting its near term and long-term assumptions for the separate account returns to 9% (gross before fund management fees and mortality and expense and other policy charges), reflecting a blended return of equity and other sub-accounts. This unlocking adjustment was primarily driven by the sustained downturn in the equity markets and revised expectations for future returns. For the year ended December 31, 2002, the Company recorded an acceleration of DAC/VOBA amortization totaling $91.5 million before tax, or $59.5 million, net of $32.0 million of federal income tax benefit. POLICY LIABILITIES AND ACCRUALS Reserves for immediate annuities with life contingent payout contracts are computed on the basis of assumed investment yield, mortality, and expenses, including a margin for adverse deviations. Such assumptions generally vary by plan, year of issue and policy duration. Reserve interest rates range from 3.0% to 3.5% for all years presented. Investment yield is based on the Company's experience. F-13 Mortality and withdrawal rate assumptions are based on relevant Company experience and are periodically reviewed against both industry standards and experience. Other policyholders' funds include reserves for deferred annuity investment contracts and immediate annuities without life contingent payouts. Reserves on such contracts are equal to cumulative deposits less charges and withdrawals plus credited interest thereon (rates range from 2.4% to 11.0% for all years presented) net of adjustments for investment experience that the Company is entitled to reflect in future credited interest. REVENUE RECOGNITION For certain annuity contracts, charges assessed against policyholders' funds for the cost of insurance, surrender, expenses, actuarial margin and other fees are recorded as revenue as charges are assessed against policyholders. Other amounts received for these contracts are reflected as deposits and are not recorded as revenue. Related policy benefits are recorded in relation to the associated premiums or gross profit so that profits are recognized over the expected lives of the contracts. When annuity payments with life contingencies begin under contracts that were initially investment contracts, the accumulated balance in the account is treated as a single premium for the purchase of an annuity and reflected as an offsetting amount in both premiums and current and future benefits in the Consolidated Income Statement. SEPARATE ACCOUNTS Separate Account assets and liabilities generally represent funds maintained to meet specific investment objectives of contractholders who bear the investment risk, subject, in some cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contractholders. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate Account assets supporting variable options under universal life and annuity contracts are invested, as designated by the contractholder or participant under a contract (who bears the investment risk subject, in limited cases, to minimum guaranteed rates) in shares of mutual funds which are managed by the Company, or other selected mutual funds not managed by the Company. Separate Account assets are carried at fair value. At December 31, 2002 and 2001, unrealized gains of $133.4 million and of $6.9 million, respectively, after taxes, on assets supporting a guaranteed interest option are reflected in shareholder's equity. Separate Account liabilities are carried at fair value, except for those relating to the guaranteed interest option. Reserves relating to the guaranteed interest option are maintained at fund value and reflect interest credited at rates ranging from 2.4% to 11.0% in 2002 and 2.4% to 14.0% in 2001. F-14 Separate Account assets and liabilities are shown as separate captions in the Consolidated Balance Sheets. Deposits, investment income and net realized and unrealized capital gains and losses of the Separate Accounts are not reflected in the Consolidated Financial Statements (with the exception of realized and unrealized capital gains and losses on the assets supporting the guaranteed interest option). The Consolidated Statements of Cash Flows do not reflect investment activity of the Separate Accounts. REINSURANCE The Company utilizes indemnity reinsurance agreements to reduce its exposure to large losses in all aspects of its insurance business. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. The Company evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the Company's Balance Sheets. INCOME TAXES The Company is taxed at regular corporate rates after adjusting income reported for financial statement purposes for certain items. Deferred income tax expenses/benefits result from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. F-15
2. INVESTMENTS Fixed maturities available for sale as of December 31 were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2002 (Millions) Cost Gains Losses Value ----------------------------------------------------------------------------------------------------------- U.S. government and government agencies and authorities $ 207.3 $ 2.3 $ 0.1 $ 209.5 U.S. corporate securities: Public utilities 335.7 15.5 1.9 349.3 Other corporate securities 3,012.0 178.7 7.8 3,182.9 ----------------------------------------------------------------------------------------------------------- Total U.S. corporate securities 3,347.7 194.2 9.7 3,532.2 ----------------------------------------------------------------------------------------------------------- Foreign securities: Government 64.8 2.9 - 67.7 Other 163.8 12.2 1.2 174.8 ----------------------------------------------------------------------------------------------------------- Total foreign securities 228.6 15.1 1.2 242.5 ----------------------------------------------------------------------------------------------------------- Mortgage-backed securities 641.7 12.0 0.2 653.5 Other asset-backed securities 294.8 7.0 3.1 298.7 ----------------------------------------------------------------------------------------------------------- Total fixed maturities, including fixed maturities pledged to creditors 4,720.1 230.6 14.3 4,936.4 Less: Fixed maturities pledged to creditors - - - - ----------------------------------------------------------------------------------------------------------- Fixed maturities $4,720.1 $ 230.6 $ 14.3 $ 4,936.4 =========================================================================================================== F-16
Fixed maturities available for sale as of December 31 were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2001 (Millions) Cost Gains Losses Value ----------------------------------------------------------------------------------------------------------- U.S. government and government agencies and authorities $ 132.1 $ 0.5 $ 3.4 $ 129.2 U.S. corporate securities: Public utilities 39.8 0.3 1.4 38.7 Other corporate securities 1,111.8 15.2 10.1 1,116.9 ----------------------------------------------------------------------------------------------------------- Total U.S. corporate securities 1,151.6 15.5 11.5 1,155.6 ----------------------------------------------------------------------------------------------------------- Foreign securities: Government 143.6 3.3 0.2 146.7 ----------------------------------------------------------------------------------------------------------- Total foreign securities 143.6 3.3 0.2 146.7 ----------------------------------------------------------------------------------------------------------- Mortgage-backed securities 167.0 3.6 0.9 169.7 Other asset-backed securities 388.2 7.2 1.7 393.7 ----------------------------------------------------------------------------------------------------------- Total fixed maturities, including fixed maturities pledged to creditors 1,982.5 30.1 17.7 1,994.9 Less: Fixed maturities pledged to creditors - - - - ----------------------------------------------------------------------------------------------------------- Fixed maturities $1,982.5 $ 30.1 $ 17.7 $ 1,994.9 ===========================================================================================================
The amortized cost and fair value of total fixed maturities for the year-ended December 31, 2002 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called, or prepaid. (Millions) Amortized Cost Fair Value ------------------------------------------------------------------------ Due to mature: One year or less $ - $ - After one year through five years 401.0 419.7 After five years through ten years 1,681.3 1,773.1 After ten years 1,701.3 1,791.4 Mortgage-backed securities 641.7 653.5 Other asset-backed securities 294.8 298.7 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Fixed maturities $4,720.1 $4,936.4 ======================================================================== At December 31, 2002 and 2001, fixed maturities with carrying values of $6.5 million and $6.9 million, respectively, were on deposit as required by regulatory authorities. The Company did not have any investments in a single issuer, other than obligations of the U.S. government, with a carrying value in excess of 10% of the Company's shareholder's equity at December 31, 2002. F-17 Beginning in April 2001, the Company entered into reverse dollar repurchase agreement and reverse repurchase agreement transactions to increase its return on investments and improve liquidity. These transactions involve a sale of securities and an agreement to repurchase substantially the same securities as those sold. The dollar rolls and reverse repurchase agreements are accounted for as short-term collateralized financings and the repurchase obligation is reported on the Consolidated Balance Sheets. The repurchase obligation totaled $40.0 and $3.9 million at December 31, 2002 and 2001, respectively. The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was not material at December 31, 2001. The Company believes the counterparties to the dollar roll and reverse repurchase agreements are financially responsible and that the counterparty risk is immaterial. During 2002, the Company determined that thirteen fixed maturities had other than temporary impairments. As a result, at December 31, 2002, the Company recognized a pre-tax loss of $8.9 million to reduce the carrying value of the fixed maturities to their combined fair value of $123.5 million. During 2001, the Company determined that ten fixed maturities had other than temporary impairments. As a result, at December 31, 2001, the Company recognized a pre-tax loss of $0.7 million to reduce the carrying value of the fixed maturities to their fair value of $0.07 million. 3. FINANCIAL INSTRUMENTS ESTIMATED FAIR VALUE The following disclosures are made in accordance with the requirements of FAS No. 107, "Disclosures about Fair Value of Financial Instruments." FAS No. 107 requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument. FAS No. 107 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. F-18 The following valuation methods and assumptions were used by the Company in estimating the fair value of the above financial instruments: FIXED MATURITIES SECURITIES: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices. The fair values for marketable bonds without an active market are obtained through several commercial pricing services which provide the estimated fair values. Fair values of privately placed bonds are determined using a matrix-based pricing model. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. Fair values for privately placed bonds are determined through consideration of factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in their relevant market. EQUITY SECURITIES: Fair values of these securities are based upon quoted market value. MORTGAGE LOANS ON REAL ESTATE: The fair values for mortgage loans on real estate are estimated using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. CASH, SHORT-TERM INVESTMENTS AND POLICY LOANS: The carrying amounts for these assets approximate the assets' fair values. ASSETS HELD IN SEPARATE ACCOUNTS: Assets held in separate accounts are reported at the quoted fair values of the individual securities in the separate accounts. SURPLUS NOTES: Estimated fair value of the Company's surplus notes were based upon discounted future cash flows using a discount rate approximating the current market value. INVESTMENT CONTRACT LIABILITIES (INCLUDED IN FUTURE POLICY BENEFITS AND CLAIMS RESERVES): SUPPLEMENTARY CONTRACTS AND IMMEDIATE ANNUITIES: Estimated fair values of the Company's liabilities for future policy benefits for the divisions of the variable annuity products with fixed interest guarantees and for supplemental contracts without life contingencies are stated at cash surrender value, the cost the Company would incur to extinguish the liability. LIABILITIES RELATED TO SEPARATE ACCOUNTS: Liabilities related to separate accounts are reported at full account value in the Company's historical balance sheet. Estimated fair values of separate account liabilities are equal to their carrying amount. F-19 The carrying values and estimated fair values of certain of the Company's financial instruments at December 31, 2002 and 2001 were as follows:
2002 2001 -------------------------------------------------------------------------------------------------------- Carrying Fair Carrying Fair (Millions) Value Value Value Value -------------------------------------------------------------------------------------------------------- Assets: Fixed maturities $ 4,936.4 $4,936.4 $ 1,994.9 $ 1,994.9 Equity securities 19.0 19.0 - - Mortgage loans on real estate 482.4 522.2 213.9 219.2 Policy loans 16.0 16.0 14.8 14.8 Cash and short-term investments 150.7 150.7 205.8 205.8 Assets held in separate accounts 11,029.3 11,029.3 10,958.2 10,958.2 Liabilities: Surplus notes (170.0) (260.0) (245.0) (358.1) Investment contract liabilities: Deferred annuities (5,128.0) (4,802.9) (2,155.3) (1,976.7) Supplementary contracts and immediate annuities (8.0) (8.0) (7.1) (7.1) Liabilities related to separate accounts (11,029.3) (11,029.3) (10,958.2) (10,958.2) --------------------------------------------------------------------------------------------------------
Fair value estimates are made at a specific point in time, based on available market information and judgments about various financial instruments, such as estimates of timing and amounts of future cash flows. Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating the Company's management of interest rate, price and liquidity risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. F-20 4. NET INVESTMENT INCOME Sources of net investment income were as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, (Millions) 2002 2001 2000 ------------------------------------------------------------------------- Fixed maturities $ 185.6 $ 83.7 $ 55.3 Mortgage loans 19.6 11.2 7.8 Policy loans 0.6 0.8 0.5 Short term investments and cash equivalents 2.6 2.6 2.3 Other 0.4 0.6 0.7 ------------------------------------------------------------------------- Gross investment income 208.8 98.9 66.6 Less: investment expenses 11.1 4.5 2.5 ------------------------------------------------------------------------- Net investment income $ 197.7 $ 94.4 $ 64.1 ========================================================================= 5. DIVIDEND RESTRICTIONS AND SHAREHOLDER'S EQUITY The ability of Golden American to pay dividends to the Parent is restricted. Prior approval of insurance regulatory authorities is required for payment of dividends to the stockholder which exceed an annual limit. During 2002, Golden American cannot pay dividends to Equitable Life without prior approval of statutory authorities. Golden American did not pay common stock dividends during 2002, 2001, or 2000. The Department recognizes as net income and capital and surplus those amounts determined in conformity with statutory accounting practices prescribed or permitted by the Department, which differ in certain respects from accounting principles generally accepted in the United States. Statutory net (loss) income was $(303.0) million, $(156.4) million and $(71.1) million for the years ended December 31, 2002, 2001, and 2000, respectively. Statutory capital and surplus was $424.9 million and $451.6 million as of December 31, 2002 and 2001, respectively. As of December 31, 2002, the Company does not utilize any statutory accounting practices, which are not prescribed by state regulatory authorities that, individually or in the aggregate, materially affect statutory capital and surplus. For 2001, the Company was required to implement statutory accounting changes ("Codification") ratified by the National Association of Insurance Commissioners ("NAIC") and state insurance departments. The cumulative effect of Codification to the Company's statutory surplus as of January 1, 2001 was a decrease of $5.9 million. The Company maintains a $40.0 million reciprocal loan agreement with ING AIH (refer to Note 10), a perpetual $75.0 million revolving note facility with Bank of New York and a $75.0 million revolving note facility with SunTrust Bank which expires on July 31, 2003. 6. CAPITAL GAINS AND LOSSES ON INVESTMENT OPERATIONS Realized capital gains or losses are the difference between the carrying value and sale proceeds of specific investments sold. Net realized capital (losses) gains on investments were as follows: F-21
Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 -------------------------------------------------------------------------------------- Fixed maturities $ 4.2 $ (4.9) $ (6.3) Equity securities - (1.6) (0.2) Mortgage loans on real estate - - (0.1) -------------------------------------------------------------------------------------- Pretax realized capital gains (losses) $ 4.2 $ (6.5) $ (6.6) ====================================================================================== After-tax realized capital gains (losses) $ 2.7 $ (4.2) $ (4.3) ======================================================================================
Proceeds from the sale of total fixed maturities and the related gross gains and losses were as follows: Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Proceeds on sales $ 7,297.1 $ 880.7 $ 205.1 Gross gains 76.8 6.9 0.2 Gross losses 72.6 11.8 6.5 Changes in shareholder's equity related to changes in accumulated other comprehensive income were as follows: (Millions) 2002 2001 2000 -------------------------------------------------------------------------- Fixed maturities $ 204.0 $18.4 $12.4 Equity securities (3.9) - - DAC/VOBA (202.8) (8.4) (10.4) -------------------------------------------------------------------------- (2.7) 10.0 2.0 Increase (decrease) in deferred income taxes (1.0) 2.1 (3.1) -------------------------------------------------------------------------- Net changes in accumulated other comprehensive income (loss) $ (1.7) $ 7.9 $ 5.1 -------------------------------------------------------------------------- F-22 Shareholder's equity included the following accumulated other comprehensive income (loss), at December 31: (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Net unrealized capital gains (losses): Fixed maturities $ 216.3 $ 12.3 $ (6.1) Equity securities (3.9) - - DAC/VOBA (209.2) (6.4) 2.0 --------------------------------------------------------------------------- 3.2 5.9 (4.1) Deferred income taxes 1.1 2.1 - --------------------------------------------------------------------------- Net accumulated other comprehensive income (loss) $ 2.1 $ 3.8 $ (4.1) =========================================================================== Changes in accumulated other comprehensive income related to changes in unrealized gains (losses) on securities, were as follows: (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Unrealized holding gains (losses) arising $ (8.7) $ 11.1 $ 6.9 the year (1) Less: reclassification adjustment for gains (losses) and other items included in net income (2) 7.0 (3.2) (1.8) --------------------------------------------------------------------------- Net unrealized gains (losses) on securities $ (1.7) $ 7.9 $ 5.1 =========================================================================== (1) Pretax unrealized holding gains (losses) arising during the year were $13.4 million, $17.1 million and $10.6 million for the years ended December 31, 2002, 2001 and 2000, respectively. (2) Pretax reclassification adjustments for gains (losses) and other items included in net income were $10.8 million, $(4.9) million and $(2.8) million for the years ended December 31, 2002, 2001 and 2000, respectively. F-23 7. SEVERANCE In December 2001, ING announced its intentions to further integrate and streamline the U.S. based operations of ING Americas, (which includes the Company), in order to build a more customer-focused organization. In connection with these actions, the Company recorded a charge of $4.9 million pretax. The severance portion of this charge ($4.8 million pretax) is based on a plan to eliminate 260 positions (primarily operations, information technology and other administrative/staff support personnel). Severance actions are expected to be substantially complete by March 31, 2003. The facilities portion ($.1 million pretax) of the charge represents the amount to be incurred by the Company to terminate a contractual lease obligation. Activity for the year ended December 31, 2002 within the severance liability and positions eliminated related to such actions were as follows: (Millions) Severance Liability Positions --------------------------------------------------------------------- Balance at December 31, 2001 $ 4.8 252 Actions taken (3.4) (194) --------------------------------------------------------------------- Balance at December 31, 2002 $ 1.4 58 ===================================================================== 8. INCOME TAXES Starting in 2002, Golden American Life Insurance Company joins in the filing of a consolidated federal income tax return with its parent, Equitable Life and other affiliates. The Company has a tax allocation agreement with Equitable Life whereby the Company is charged for taxes it would have incurred were it not a member of the consolidated group and is credited for losses at the statutory tax rate. Prior to joining the Equitable Life consolidated group, the Company was the parent of a different consolidated group. At December 31, 2002, the Company has net operating loss carryforwards of approximately $369.2 million for federal income tax purposes which are available to offset future taxable income. If not used, these carryforwards will expire between 2011 and 2016. Income tax expense (benefit) from continuing operations included in the consolidated financial statements are as follows: Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 --------------------------------------------------------------------------- Current taxes (benefits): Federal $ (98.2) $ 0.6 $ (0.1) --------------------------------------------------------------------------- Total current taxes (benefits) (98.2) 0.6 (0.1) --------------------------------------------------------------------------- Deferred taxes (benefits): Federal 85.7 (0.5) 13.3 --------------------------------------------------------------------------- Total deferred taxes (benefits) 85.7 (0.5) 13.3 --------------------------------------------------------------------------- Total $ (12.5) $ 0.1 $ 13.2 ============================================================================ F-24 Income taxes were different from the amount computed by applying the federal income tax rate to income from continuing operations before income taxes for the following reasons:
Year ended Year ended Year ended December 31, December 31, December 31, (Millions) 2002 2001 2000 ------------------------------------------------------------------------------------ Income before income taxes $ (42.2) $ (3.9) $ 32.4 Tax rate 35% 35% 35% ------------------------------------------------------------------------------------ Income tax at federal statutory rate (14.8) (1.4) 11.3 Tax effect of: Goodwill amortization - 1.0 1.0 Meals and entertainment 0.6 0.5 0.3 Other 1.7 - 0.6 ------------------------------------------------------------------------------------ Income tax expense (benefit) $ (12.5) $ 0.1 $ 13.2 ------------------------------------------------------------------------------------
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31 are presented below:
(Millions) 2002 2001 ------------------------------------------------------------------------------------ Deferred tax assets: Operations and capital loss carryforwards $ 125.6 $ 121.7 Future policy benefits 214.1 176.3 Goodwill 11.1 - Investments 0.2 0.1 ------------------------------------------------------------------------------------ 351.0 298.1 Deferred tax liabilities: Goodwill - (3.5) Unrealized gains on investments (1.1) (2.1) Deferred policy acquisition cost (254.8) (222.8) Value of purchased insurance in force (5.0) (6.9) Other (169.9) (75.4) ------------------------------------------------------------------------------------ Deferred tax liability before allowance (430.8) (310.7) ------------------------------------------------------------------------------------ Valuation allowance - - ------------------------------------------------------------------------------------ Net deferred income tax liability $ (79.8) $ (12.6) ====================================================================================
The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. F-25 9. BENEFIT PLANS DEFINED BENEFIT PLANS Prior to December 31, 2001, the Company's employees were covered by the ING Retirement Plan for Employees of Equitable Life ("Equitable Plan"), a qualified, defined contribution pension plan. The Company was allocated its share of the pension liability associated with employees. As of December 31, 2001, the qualified pension benefit plans of certain United States subsidiaries of ING North America Insurance Corporation ("ING North America"), including Equitable Life, were merged into the ING Americas Retirement Plan. The Company transferred its pension liabilities to the Parent at that date. In exchange for these liabilities, the Company received a capital contribution, net of taxes, from the Parent. The costs allocated to the Company for its members' participation in the ING Pension Plan were $3.0 million for 2002. The following tables summarize the benefit obligations and the funded status for pension benefits related to the Equitable Plan for the two-year period ended December 31, 2001: (Millions) 2001 - ------------------------------------------------------------------------------ Change in benefit obligation: Benefit obligation at January 1 $ 7.9 Service cost 2.0 Interest cost 0.8 Actuarial (gain) loss (2.7) Plan Amendments (0.2) Transfer of benefit obligation to the Parent (7.8) ---------------------- Benefit obligation at December 31 $ - ====================== Funded status: Funded status at December 31 prior to the transfer of the benefit obligation to the Parent $ (7.8) Unrecognized past service cost (1.1) Unrecognized net loss - Transfer of the funded status to the Parent 8.9 ---------------------- Net amount recognized $ - ====================== Prior to the merger of the qualified benefit plans of ING's U.S. subsidiaries at December 31, 2001, Equitable Life, held the plan assets. The weighted-average assumptions used in the measurement of the Company's' December 31, 2001 benefit obligation, prior to the merger of the qualified benefit plans of ING, follows: 2001 - ------------------------------------------------------------------------------ Discount rate 7.50% Expected return on plan assets 9.25 Rate of compensation increase 4.50 F-26 The following table provides the net periodic benefit cost for the fiscal years 2001 and 2000: Year Ended December 31, 2001 2000 - ------------------------------------------------------------------------ (MILLIONS) Service cost $ 2.0 $ 1.6 Interest cost 0.8 0.5 Unrecognized past service cost - - ------------------------------------ Net periodic benefit cost $ 2.8 $ 2.1 ==================================== There were no gains or losses resulting from curtailments or settlements during 2001 or 2000. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $0 as of December 31, 2001. 10. RELATED PARTY TRANSACTIONS OPERATING AGREEMENTS: The Company has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. The agreements are as follows: o Resources and services are provided to Security Life of Denver Insurance Company ("SLDIC) and Southland Life Insurance Company ("SLIC"). For the years ended December 31, 2002, 2001, and 2000 revenues for these services, which reduced general expenses incurred, were $4.2 million, $0.3 million and $0.3 million, respectively for SLDIC and $1.0 million, $0.1 million and $0.1 million, respectively for SLIC. o Underwriting and distribution agreement with Directed Services, Inc. ("DSI"), for the variable insurance products issued by the Company. DSI is authorized to enter into agreements with broker/dealers to distribute the Company's' variable products and appoint representatives of the broker/dealers as agents. For the years ended December 31, 2002, 2001 and 2000 commission expenses were incurred in the amounts of $282.9 million, $229.7 million, and $208.9 million, respectively. o Asset management agreement with ING Investment Management LLC ("IIM"), in which IIM provides asset management and accounting services. The Company records a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2002, 2001, and 2000 expenses were incurred in the amounts of $11.0 million, $4.4 million, and $2.5 million, respectively. o Service agreement with Equitable Life in which administrative and financial related services are provided. For the years ended December 31, 2002, 2001, and 2000 expenses were incurred in the amounts of $0.6 million, $0.3 million, and $1.3 million, respectively. Golden American has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. F-27 The agreements are as follows: o Managerial and supervisory services to DSI. The fee paid by DSI for these services is calculated as a percentage of average assets in the variable separate accounts. For the years ended December 31, 2002, 2001, and 2000 revenue for these services was $23.7 million, $23.1 million, and $21.3 million, respectively. o Advisory, computer, and other resources and services are provided to Equitable Life and United Life & Annuity Insurance Company ("ULAIC"). For the years ended December 31, 2002, 2001, and 2000 revenues for these services, which reduced general expenses incurred, totaled $9.8 million, $8.2 million, and $6.2 million, respectively for Equitable Life and $0.3 million, $0.4 million and $0.6 million, respectively for ULAIC. o Expense sharing agreements with ING America Insurance Holdings, Inc. ("ING AIH") for administrative, management, financial, and information technology services, which were approved in 2001. For the years ended December 31, 2002 and 2001, Golden American incurred expenses of $41.0 million and $23.2 million, respectively. o Guaranty agreement with Equitable Life. In consideration of an annual fee, payable June 30, Equitable Life guarantees that it will make funds available, if needed, to pay the contractual claims made under the provisions of Golden American's life insurance and annuity contracts. The agreement is not, and nothing contained therein or done pursuant thereto by Equitable Life shall be deemed to constitute, a direct or indirect guaranty by Equitable Life of the payment of any debt or other obligation, indebtedness, or liability, of any kind or character whatsoever, of Golden American. The agreement does not guarantee the value of the underlying assets held in separate accounts in which funds of variable life insurance and variable annuity policies have been invested. The calculation of the annual fee is based on risk based capital. No amounts were payable under this agreement as of December 31, 2002, 2001 and 2000. REINSURANCE AGREEMENTS: Golden American participates in a modified coinsurance agreement with Equitable Life, covering a considerable portion of Golden American's variable annuities issued on or after January 1, 2000, excluding those with an interest rate guarantee. The financial statements are presented net of the effects of the agreement. Under this agreement, Golden American received a net reimbursement of expenses and charges of $100.9 million, $224.5 million and $218.8 million for the years ended December 31, 2002, 2001, and 2000, respectively. This was offset by a decrease in policy acquisition costs deferred of $143.5 million, $257.5 million and $223.7 million, respectively, for the same periods. As at December 31, 2002, 2001 and 2000, Golden American also had a payable to Equitable Life of $7.1 million, $22.6 million and $16.3 million, respectively, due to the overpayment by Equitable Life of the cash settlement for the modified coinsurance agreement. Golden American entered into a reinsurance agreement with Security Life of Denver International, Ltd., an affiliate, covering variable annuity minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued after January 1, 2000. Golden American also obtained an irrevocable letter of credit in the amount of $25 million related to this agreement. In addition, the Company obtained a standby letter of credit in the amount of $75 million. F-28 RECIPROCAL LOAN AGREEMENT: Golden American maintains a reciprocal loan agreement with ING AIH, a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Under this agreement, which expires December 31, 2007, Golden American and ING AIH can borrow up to $40.0 million from one another. Prior to lending funds to ING AIH, Golden American must obtain the approval from the Department of Insurance of the State of Delaware. Interest on any Golden American borrowings is charged at the rate of ING AIH's cost of funds for the interest period plus 0.15%. Interest on any ING AIH borrowings is charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Under this agreement, Golden American incurred interest expense of $33,000, $26,000, and $481,000 for the years ended December 31, 2002, 2001 and 2000, respectively. At December 31, 2002, 2001, and 2000, Golden American did not have any borrowings or receivables from ING AIH under this agreement. SURPLUS NOTES: Golden American issued multiple 30-year surplus notes (see below table). Payment of the notes and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of Golden American. Any payment of principal and/or interest made is subject to the prior approval of the Delaware Insurance Commissioner. Interest expense for the years ended December 31:
(Millions) - ----------------------------------------------------------------------------------------------------------------------- Surplus Maturity Note Amount Affiliate Date 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------- 8.2% 50.0 *Equitable Life 12/29/29 2.0 4.1 4.1 8.0 35.0 Security Life of Denver 12/07/29 2.8 2.8 3.0 7.8 75.0 Equitable Life 09/29/29 5.8 5.8 5.8 7.3 60.0 Equitable Life 12/29/28 4.4 4.4 4.4 8.3 25.0 *Equitable Life 12/17/26 1.0 2.1 2.1 - -----------------------------------------------------------------------------------------------------------------------
*Surplus notes redeemed June 28, 2002. STOCKHOLDER'S EQUITY: During 2002, 2001, and 2000, Golden American received capital contributions of $356.3 million, $196.8 million, and $115.0 million respectively. F-29 11. REINSURANCE At December 31, 2002, Golden American had reinsurance treaties with four unaffiliated reinsurers and three affiliated reinsurers covering a significant portion of the mortality risks and guaranteed death and living benefits under its variable contracts. Golden American remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. Reinsurance ceded in force for life mortality risks were $90.7 million and $94.8 million at December 31, 2002 and 2001, respectively. At December 31, 2002 and 2001, the Company had net receivables of $196.9 million and $56.0 million, respectively for reinsurance claims, reserve credits, or other receivables from these reinsurers. At December 31, 2002 and 2001, respectively, these net receivables were comprised of the following: $36.7 and $7.8 million for claims recoverable from reinsurers; $6.3 and $3.4 million for payable for reinsurance premiums; $137.2 million and $28.8 million for reserve credits; and $24.0 million and $22.7 million for reinsured surrenders and allowances due from an unaffiliated reinsurer. Included in the accompanying consolidated financial statements, excluding the modified coinsurance agreements, are net considerations to reinsurers of $50.8 million, $30.3 million and $21.7 million and net policy benefits recoveries of $49.5 million, $21.8 million and $8.9 million for the years ended December 21, 2002, 2001 and 2000, respectively. Golden participates in a modified coinsurance agreement with an unaffiliated reinsurer. The accompanying consolidated financial statements are presented net of the effects of the treaty which increased (decreased) income by $(2.9) million, $(0.5) million and $1.7 million for the years ended December 31, 2002, 2001 and 2000, respectively. 12. COMMITMENTS AND CONTINGENT LIABILITIES LEASES For the year ended December 31, 2002 rent expense for leases was $4.6 million. The future net minimum payments under noncancelable leases for the years ended December 31, 2003 through 2007 are estimated to be $2.3 million, $2.3 million, $2.4 million, $2.4 million and $2.4 million, respectively, and $2.4 million, thereafter. The Company pays substantially all expenses associated with its leased and subleased office properties. Expenses not paid directly by the Company are paid for by an affiliate and allocated back to the Company. COMMITMENTS Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans or money market instruments at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. At December 31, 2002 and 2001, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $39.0 million and $25.2 million, respectively. The Company makes investments in limited partnerships on a subscription basis. At December 31, 2002 and 2001, the Company had to fund the subscriptions of $38.0 million and $0.0 million, respectively. F-30 LITIGATION The Company is a party to threatened or pending lawsuits arising from the normal conduct of business. Due to the climate in insurance and business litigation, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits will not have a materially adverse effect on the Company's operations or financial position. F-31
QUARTERLY DATA (UNAUDITED) 2002 (Millions) First Second Third Fourth - ------------------------------------------------------------------------------------------------------ Total Revenue $ 69.4 $ 89.2 $ 141.4 $ 109.4 - ------------------------------------------------------------------------------------------------------ Income (loss) before income taxes (3.2) (16.0) (60.2) 37.2 Income taxes (benefit) (1.0) (5.5) (19.2) 13.2 - ------------------------------------------------------------------------------------------------------ Income (loss) before cumulative effect of change in accounting principal (2.2) (10.5) (41.0) 24.0 Cumulative effect of change in accounting principle - - - (135.3) - ------------------------------------------------------------------------------------------------------ Net income (loss) $ (2.2) $ (10.5) $ (41.0) $ (111.3) ====================================================================================================== 2001 (Millions) First Second Third Fourth - ------------------------------------------------------------------------------------------------------ Total Revenue $ 72.1 $ 65.4 $ 70.1 $ 69.2 - ------------------------------------------------------------------------------------------------------ Income (loss) before income taxes 14.2 5.6 (14.3) (9.4) Income taxes 5.3 2.4 (5.6) (2.0) - ------------------------------------------------------------------------------------------------------ Net income (loss) $ 8.9 $ 3.2 $ (8.7) $ (7.4) ====================================================================================================== F-32
FINANCIAL STATEMENTS Golden American Life Insurance Company Separate Account B YEAR ENDED DECEMBER 31, 2002 WITH REPORT OF INDEPENDENT AUDITORS Golden American Life Insurance Company Separate Account B Financial Statements Year ended December 31, 2002 CONTENTS Report of Independent Auditors.............................................1 Audited Financial Statements Statement of Assets and Liabilities........................................4 Statement of Operations...................................................32 Statements of Changes in Net Assets.......................................60 Notes to Financial Statements.............................................88 Report of Independent Auditors The Board of Directors and Participants Golden American Life Insurance Company We have audited the accompanying statement of assets and liabilities of Golden American Life Insurance Company Separate Account B (the "Account") as of December 31, 2002, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. The Account is comprised of the following Divisions: The GCG Trust: The GCG Trust (continued): All Cap Internet Tollkeeper Advisor All Cap Advisor Investors Asset Allocation Growth Investors Advisor Capital Growth J.P. Morgan Fleming Small Cap Equity Capital Growth Advisor J.P. Morgan Fleming Small Cap Advisor Capital Guardian Small Cap Janus Growth and Income Capital Guardian Small Cap Advisor Janus Growth and Income Advisor Core Bond Large Cap Value Core Bond Advisor Large Cap Value Advisor Developing World Limited Maturity Bond Developing World Advisor Liquid Asset Diversified Mid-Cap Liquid Asset Advisor Diversified Mid-Cap Advisor Managed Global Emerging Markets Managed Global Advisor Equity Growth Market Manager Equity Growth Advisor Mid-Cap Growth Equity Income Mid-Cap Growth Advisor Equity Income Advisor Real Estate Equity Opportunity Real Estate Advisor Equity Opportunity Advisor Research Focus Value Research Advisor Focus Value Advisor Special Situations Fully Managed Special Situations Advisor Fully Managed Advisor Strategic Equity Fundamental Growth Focus Strategic Equity Advisor Fundamental Growth Advisor Total Return Global Franchise Total Return Advisor Global Franchise Advisor Value Equity Growth Value Equity Advisor Growth Advisor Van Kampen Growth and Income Hard Assets Van Kampen Growth and Income Advisor Hard Assets Advisor AIM Variable Insurance Funds: International Enhanced EAFE AIM V.I. Dent Demographic Trends International Enhanced EAFE Advisor AIM V.I. Growth International Equity AIM V.I. Capital Appreciation International Equity Advisor AIM V.I. Core Equity Internet Tollkeeper AIM V.I. Premier Equity
1 Alliance Variable Products Series Fund, Inc.: ING Variable Portfolios, Inc. (continued): Alliance Bernstein Value ING VP Small Company Alliance Growth and Income ING VP Value Opportunity Alliance Premier Growth ING Variable Products Trust: Fidelity(R) Variable Insurance Products Fund: ING VP Convertible Fidelity(R) VIP Growth ING VP Growth Opportunities Fidelity(R) VIP Equity-Income ING VP International Value Fidelity(R) VIP Contrafund(R) ING VP Large Company Value Fidelity(R) VIP Overseas ING VP LargeCap Growth Franklin Templeton Variable Insurance Products Trust: ING VP MagnaCap Franklin Small Cap Value Securities ING VP MidCap Opportunities Greenwich Street Series Fund: ING VP SmallCap Opportunities Greenwich Appreciation INVESCO Variable Investment Funds, Inc.: The Galaxy VIP Fund: INVESCO VIF - Financial Services Galaxy VIP Asset Allocation INVESCO VIF - Health Sciences Galaxy VIP Equity INVESCO VIF - Leisure Galaxy VIP Growth and Income INVESCO VIF - Utilities Galaxy VIP High Quality Bond Janus Aspen Series: Galaxy VIP Small Company Growth Janus Aspen Series Balanced ING GET Fund: Janus Aspen Series Flexible Income ING GET Fund - Series N Janus Aspen Series Growth ING GET Fund - Series P Janus Aspen Series Worldwide Growth ING GET Fund - Series Q Oppenheimer Variable Accounts Fund: ING GET Fund - Series R Oppenheimer Global Securities ING GET Fund - Series S Oppenheimer Strategic Bond ING GET Fund - Series T PIMCO Variable Insurance Trust: ING GET Fund - Series U PIMCO High Yield ING Partners, Inc.: PIMCO StocksPLUS Growth and Income ING Alger Growth Pioneer Variable Contracts Trust: ING American Century Small Cap Value Pioneer Equity-Income VCT ING J.P. Morgan Mid Cap Value Pioneer Fund VCT ING MFS(R)Capital Opportunities (Initial Class) Pioneer Mid-Cap Value VCT ING MFS(R)Capital Opportunities (Service Class) Pioneer Small Company VCT ING MFS(R)Global Growth ProFunds VP: ING OpCap Balanced Value ProFund VP Bull ING PIMCO Total Return ProFund VP Europe 30 ING Salomon Bros. Capital ProFund VP Small-Cap ING Salomon Bros. Investors Value Prudential Series Fund, Inc.: ING Scudder International Growth Prudential Jennison ING T. Rowe Price Growth Equity Prudential SP Jennison International Growth ING UBS Tactical Asset Allocation Putnam Variable Trust: ING Van Kampen Comstock Putnam VT Growth and Income ING Variable Insurance Trust: Putnam VT International Growth and Income ING VP Worldwide Growth Putnam VT Voyager II
2 ING VP Bond Portfolio: Travelers Series Fund Inc.: ING VP Bond Smith Barney High Income ING Variable Portfolios, Inc.: Smith Barney International All Cap Growth ING VP Growth Smith Barney Large Cap Value ING VP Index Plus LargeCap Smith Barney Money Market ING VP Index Plus MidCap UBS Series Trust: ING VP Index Plus SmallCap UBS Tactical Allocation
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2002, by correspondence with the transfer agents. 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 referred to above present fairly, in all material respects, the financial position of each of the Divisions comprising the Golden American Life Insurance Company Separate Account B at December 31, 2002, and the results of their operations and changes in their net assets for the periods disclosed in the financial statements, in conformity with accounting principles generally accepted in the United States. /s/ ERNST & YOUNG LLP Atlanta, Georgia March 14, 2003 3 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $247,786 $176 $47,253 $246,763 $148 $341,173 --------------------------------------------------------------------------------- Total assets 247,786 176 47,253 246,763 148 341,173 LIABILITIES Payable to Golden American Life Insurance Company 46 - 12 (6) - 27 --------------------------------------------------------------------------------- Total liabilities 46 - 12 (6) - 27 --------------------------------------------------------------------------------- NET ASSETS $247,740 $176 $47,241 $246,769 $148 $341,146 ================================================================================= NET ASSETS Accumulation units $247,740 $176 $47,241 $246,769 $148 $341,115 Contracts in payout (annuitization) period - - - - - 31 --------------------------------------------------------------------------------- Total net assets $247,740 $176 $47,241 $246,769 $148 $341,146 ================================================================================= Total number of mutual fund shares 28,947,007 20,551 6,446,580 27,663,981 16,548 43,516,942 ================================================================================= Cost of mutual fund shares $326,290 $177 $55,931 $245,271 $154 $365,212 ================================================================================= SEE ACCOMPANYING NOTES.
4 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GUARDIAN GCG TRUST GCG TRUST GCG TRUST GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING DEVELOPING DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD WORLD ADVISOR MID-CAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $321 $425,187 $992 $60,010 $79 $91,178 --------------------------------------------------------------------------------- Total assets 321 425,187 992 60,010 79 91,178 LIABILITIES Payable to Golden American Life Insurance Company - 62 - 10 - 19 --------------------------------------------------------------------------------- Total liabilities - 62 - 10 - 19 --------------------------------------------------------------------------------- NET ASSETS $321 $425,125 $992 $60,000 $79 $91,159 ================================================================================= NET ASSETS Accumulation units $321 $425,125 $992 $59,922 $79 $91,159 Contracts in payout (annuitization) period - - - 78 - - --------------------------------------------------------------------------------- Total net assets $321 $425,125 $992 $60,000 $79 $91,159 ================================================================================= Total number of mutual fund shares 40,778 40,927,570 95,384 9,463,043 12,488 12,304,724 ================================================================================= Cost of mutual fund shares $320 $413,399 $995 $66,565 $81 $107,329 ================================================================================= SEE ACCOMPANYING NOTES.
5 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST EQUITY GCG TRUST EQUITY GCG TRUST MID-CAP EQUITY GROWTH EQUITY INCOME EQUITY ADVISOR GROWTH ADVISOR INCOME ADVISOR OPPORTUNITY --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $220 $4,363 $458 $409,709 $640 $280,956 --------------------------------------------------------------------------------- Total assets 220 4,363 458 409,709 640 280,956 LIABILITIES Payable to Golden American Life Insurance Company - 1 - 39 - 2 --------------------------------------------------------------------------------- Total liabilities - 1 - 39 - 2 --------------------------------------------------------------------------------- NET ASSETS $220 $4,362 $458 $409,670 $640 $280,954 ================================================================================= NET ASSETS Accumulation units $220 $4,362 $458 $409,087 $640 $280,954 Contracts in payout (annuitization) period - - - 583 - - --------------------------------------------------------------------------------- Total net assets $220 $4,362 $458 $409,670 $640 $280,954 ================================================================================= Total number of mutual fund shares 29,088 553,027 58,036 42,151,267 65,893 28,011,556 ================================================================================= Cost of mutual fund shares $224 $4,533 $480 $478,993 $660 $375,266 ================================================================================= SEE ACCOMPANYING NOTES.
6 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST FULLY FUNDAMENTAL OPPORTUNITY GCG TRUST FOCUS VALUE FULLY MANAGED GROWTH ADVISOR FOCUS VALUE ADVISOR MANAGED ADVISOR FOCUS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $34 $5,932 $48 $935,237 $894 $2,742 --------------------------------------------------------------------------------- Total assets 34 5,932 48 935,237 894 2,742 LIABILITIES Payable to Golden American Life Insurance Company - 1 - 158 - - --------------------------------------------------------------------------------- Total liabilities - 1 - 158 - - --------------------------------------------------------------------------------- NET ASSETS $34 $5,931 $48 $935,079 $894 $2,742 ================================================================================= NET ASSETS Accumulation units $34 $5,931 $48 $934,553 $894 $2,742 Contracts in payout (annuitization) period - - - 526 - - --------------------------------------------------------------------------------- Total net assets $34 $5,931 $48 $935,079 $894 $2,742 ================================================================================= Total number of mutual fund shares 3,356 702,000 5,700 54,596,475 52,102 340,663 ================================================================================= Cost of mutual fund shares $34 $6,022 $50 $951,332 $913 $2,856 ================================================================================= SEE ACCOMPANYING NOTES.
Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GCG TRUST ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR HARD ASSETS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $108 $14,672 $708 $559,968 $92 $67,762 --------------------------------------------------------------------------------- Total assets 108 14,672 708 559,968 92 67,762 LIABILITIES Payable to Golden American Life Insurance Company - 2 - (73) - 9 --------------------------------------------------------------------------------- Total liabilities - 2 - (73) - 9 --------------------------------------------------------------------------------- NET ASSETS $108 $14,670 $708 $560,041 $92 $67,753 ================================================================================= NET ASSETS Accumulation units $108 $14,670 $708 $560,041 $92 $67,731 Contracts in payout (annuitization) period - - - - - 22 --------------------------------------------------------------------------------- Total net assets $108 $14,670 $708 $560,041 $92 $67,753 ================================================================================= Total number of mutual fund shares 13,419 1,643,031 78,863 57,609,909 9,474 6,907,479 ================================================================================= Cost of mutual fund shares $113 $14,881 $702 $588,641 $97 $72,704 ================================================================================= SEE ACCOMPANYING NOTES.
7 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST INTERNATIONAL GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL EQUITY INTERNET ADVISOR EAFE EAFE ADVISOR EQUITY ADVISOR TOLLKEEPER --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $97 $4,990 $165 $120,479 $254 $12,805 --------------------------------------------------------------------------------- Total assets 97 4,990 165 120,479 254 12,805 LIABILITIES Payable to Golden American Life Insurance Company - - - 2 - 3 --------------------------------------------------------------------------------- Total liabilities - - - 2 - 3 --------------------------------------------------------------------------------- NET ASSETS $97 $4,990 $165 $120,477 $254 $12,802 ================================================================================= NET ASSETS Accumulation units $97 $4,990 $165 $120,477 $254 $12,802 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $97 $4,990 $165 $120,477 $254 $12,802 ================================================================================= Total number of mutual fund shares 9,842 602,666 19,839 17,486,179 36,824 2,690,088 ================================================================================= Cost of mutual fund shares $95 $4,961 $166 $117,316 $254 $12,773 ================================================================================= SEE ACCOMPANYING NOTES.
8 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST J.P. GCG TRUST J.P. MORGAN MORGAN GCG TRUST INTERNET GCG TRUST FLEMING FLEMING JANUS TOLLKEEPER GCG TRUST INVESTORS SMALL CAP SMALL CAP GROWTH AND ADVISOR INVESTORS ADVISOR EQUITY ADVISOR INCOME --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $53 $92,152 $297 $9,491 $511 $130,375 --------------------------------------------------------------------------------- Total assets 53 92,152 297 9,491 511 130,375 LIABILITIES Payable to Golden American Life Insurance Company - 16 - 1 - 30 --------------------------------------------------------------------------------- Total liabilities - 16 - 1 - 30 --------------------------------------------------------------------------------- NET ASSETS $53 $92,136 $297 $9,490 $511 $130,345 ================================================================================= NET ASSETS Accumulation units $53 $92,136 $297 $9,490 $511 $130,345 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $53 $92,136 $297 $9,490 $511 $130,345 ================================================================================= Total number of mutual fund shares 11,189 11,490,287 37,008 1,198,388 64,524 18,107,685 ================================================================================= Cost of mutual fund shares $57 $119,320 $297 $9,902 $520 $156,213 ================================================================================= SEE ACCOMPANYING NOTES.
9 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST JANUS GROWTH GCG TRUST GCG TRUST LIMITED LIQUID AND INCOME LARGE CAP LARGE CAP MATURITY GCG TRUST ASSET ADVISOR VALUE VALUE ADVISOR BOND LIQUID ASSET ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $587 $295,742 $333 $559,019 $1,023,271 $1,800 --------------------------------------------------------------------------------- Total assets 587 295,742 333 559,019 1,023,271 1,800 LIABILITIES Payable to Golden American Life Insurance Company - 54 - 78 92 - --------------------------------------------------------------------------------- Total liabilities - 54 - 78 92 - --------------------------------------------------------------------------------- NET ASSETS $587 $295,688 $333 $558,941 $1,023,179 $1,800 ================================================================================= NET ASSETS Accumulation units $587 $295,688 $333 $558,749 $1,023,108 $1,800 Contracts in payout (annuitization) period - - - 192 71 - --------------------------------------------------------------------------------- Total net assets $587 $295,688 $333 $558,941 $1,023,179 $1,800 ================================================================================= Total number of mutual fund shares 81,270 38,209,569 42,967 48,864,682 1,023,271,242 1,799,891 ================================================================================= Cost of mutual fund shares $602 $364,544 $347 $550,029 $1,023,271 $1,800 ================================================================================= SEE ACCOMPANYING NOTES.
10 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST MANAGED GLOBAL MID-CAP GROWTH GCG TRUST REAL ESTATE GLOBAL ADVISOR GROWTH ADVISOR REAL ESTATE ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $223,101 $50 $435,524 $549 $187,637 $276 --------------------------------------------------------------------------------- Total assets 223,101 50 435,524 549 187,637 276 LIABILITIES Payable to Golden American Life Insurance Company 17 - (57) - 30 - --------------------------------------------------------------------------------- Total liabilities 17 - (57) - 30 - --------------------------------------------------------------------------------- NET ASSETS $223,084 $50 $435,581 $549 $187,607 $276 ================================================================================= NET ASSETS Accumulation units $222,985 $50 $435,520 $549 $187,529 $276 Contracts in payout (annuitization) period 99 - 61 - 78 - --------------------------------------------------------------------------------- Total net assets $223,084 $50 $435,581 $549 $187,607 $276 ================================================================================= Total number of mutual fund shares 26,911,933 5,981 59,989,440 75,620 12,534,302 18,400 ================================================================================= Cost of mutual fund shares $265,330 $51 $536,584 $558 $203,069 $278 ================================================================================= SEE ACCOMPANYING NOTES.
11 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST RESEARCH SPECIAL SITUATIONS STRATEGIC EQUITY RESEARCH ADVISOR SITUATIONS ADVISOR EQUITY ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $421,026 $326 $21,800 $56 $139,837 $78 --------------------------------------------------------------------------------- Total assets 421,026 326 21,800 56 139,837 78 LIABILITIES Payable to Golden American Life Insurance Company (9) - 6 - (15) - --------------------------------------------------------------------------------- Total liabilities (9) - 6 - (15) - --------------------------------------------------------------------------------- NET ASSETS $421,035 $326 $21,794 $56 $139,852 $78 ================================================================================= NET ASSETS Accumulation units $421,035 $326 $21,794 $56 $139,689 $78 Contracts in payout (annuitization) period - - - - 163 - --------------------------------------------------------------------------------- Total net assets $421,035 $326 $21,794 $56 $139,852 $78 ================================================================================= Total number of mutual fund shares 35,202,892 27,238 3,488,059 8,892 15,554,763 8,627 ================================================================================= Cost of mutual fund shares $624,498 $329 $29,152 $56 $139,701 $79 ================================================================================= SEE ACCOMPANYING NOTES.
12 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST VAN KAMPEN TOTAL GCG TRUST VALUE VAN KAMPEN GROWTH AND GCG TRUST RETURN VALUE EQUITY GROWTH AND INCOME TOTAL RETURN ADVISOR EQUITY ADVISOR INCOME ADVISOR --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $853,368 $955 $173,253 $107 $554,615 $990 --------------------------------------------------------------------------------- Total assets 853,368 955 173,253 107 554,615 990 LIABILITIES Payable to Golden American Life Insurance Company 102 - 14 - 7 - --------------------------------------------------------------------------------- Total liabilities 102 - 14 - 7 - --------------------------------------------------------------------------------- NET ASSETS $853,266 $955 $173,239 $107 $554,608 $990 ================================================================================= NET ASSETS Accumulation units $853,266 $955 $173,226 $107 $554,483 $990 Contracts in payout (annuitization) period - - 13 - 125 - --------------------------------------------------------------------------------- Total net assets $853,266 $955 $173,239 $107 $554,608 $990 ================================================================================= Total number of mutual fund shares 57,621,059 64,473 13,535,386 8,350 32,188,897 57,364 ================================================================================= Cost of mutual fund shares $940,003 $984 $206,816 $110 $733,160 $1,001 ================================================================================= SEE ACCOMPANYING NOTES.
13 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
AIM V.I. DENT AIM V.I. AIM V.I. ALLIANCE DEMOGRAPHIC AIM V.I. CAPITAL AIM V.I. PREMIER BERNSTEIN TRENDS GROWTH APPRECIATION CORE EQUITY EQUITY VALUE --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $11,338 $848 $27 $41 $80 $2,709 --------------------------------------------------------------------------------- Total assets 11,338 848 27 41 80 2,709 LIABILITIES Payable to Golden American Life Insurance Company 3 - - - - - --------------------------------------------------------------------------------- Total liabilities 3 - - - - - --------------------------------------------------------------------------------- NET ASSETS $11,335 $848 $27 $41 $80 $2,709 ================================================================================= NET ASSETS Accumulation units $11,335 $848 $27 $41 $80 $2,709 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $11,335 $848 $27 $41 $80 $2,709 ================================================================================= Total number of mutual fund shares 2,999,480 75,286 1,672 2,417 4,947 309,651 ================================================================================= Cost of mutual fund shares $13,467 $932 $34 $44 $87 $2,932 ================================================================================= SEE ACCOMPANYING NOTES.
14 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ALLIANCE ALLIANCE FIDELITY(R) FIDELITY(R) FIDELITY(R) GROWTH AND PREMIER FIDELITY(R) VIP VIP VIP INCOME GROWTH VIP GROWTH EQUITY-INCOME CONTRAFUND(R) OVERSEAS --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $4,731 $2,094 $23,216 $23,855 $4,439 $9 --------------------------------------------------------------------------------- Total assets 4,731 2,094 23,216 23,855 4,439 9 LIABILITIES Payable to Golden American Life Insurance Company 1 - 4 4 1 - --------------------------------------------------------------------------------- Total liabilities 1 - 4 4 1 - --------------------------------------------------------------------------------- NET ASSETS $4,730 $2,094 $23,212 $23,851 $4,438 $9 ================================================================================= NET ASSETS Accumulation units $4,730 $2,094 $23,212 $23,851 $4,438 $9 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $4,730 $2,094 $23,212 $23,851 $4,438 $9 ================================================================================= Total number of mutual fund shares 286,931 121,132 1,000,254 1,325,264 247,315 848 ================================================================================= Cost of mutual fund shares $5,706 $2,199 $24,417 $23,730 $4,720 $9 ================================================================================= SEE ACCOMPANYING NOTES.
15 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
FRANKLIN GALAXY VIP SMALL CAP GALAXY VIP GALAXY VIP HIGH VALUE GREENWICH ASSET GALAXY VIP GROWTH AND QUALITY SECURITIES APPRECIATION ALLOCATION EQUITY INCOME BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $17 $589 $631 $487 $122 $130 --------------------------------------------------------------------------------- Total assets 17 589 631 487 122 130 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $17 $589 $631 $487 $122 $130 ================================================================================= NET ASSETS Accumulation units $17 $589 $631 $487 $122 $130 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $17 $589 $631 $487 $122 $130 ================================================================================= Total number of mutual fund shares 1,814 33,520 52,433 43,112 15,339 11,785 ================================================================================= Cost of mutual fund shares $20 $704 $875 $907 $171 $124 ================================================================================= SEE ACCOMPANYING NOTES.
16 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP SMALL ING GET ING GET ING GET ING GET ING GET COMPANY FUND - FUND - FUND - FUND - FUND - GROWTH SERIES N SERIES P SERIES Q SERIES R SERIES S --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $57 $28,663 $142,429 $169,061 $170,561 $219,297 --------------------------------------------------------------------------------- Total assets 57 28,663 142,429 169,061 170,561 219,297 LIABILITIES Payable to Golden American Life Insurance Company - 2 (1,417) 32 35 27 --------------------------------------------------------------------------------- Total liabilities - 2 (1,417) 32 35 27 --------------------------------------------------------------------------------- NET ASSETS $57 $28,661 $143,846 $169,029 $170,526 $219,270 ================================================================================= NET ASSETS Accumulation units $57 $28,661 $143,846 $169,029 $170,526 $219,270 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $57 $28,661 $143,846 $169,029 $170,526 $219,270 ================================================================================= Total number of mutual fund shares 7,252 2,832,289 13,991,036 16,838,766 16,887,183 21,777,267 ================================================================================= Cost of mutual fund shares $90 $28,540 $140,492 $168,845 $169,204 $218,284 ================================================================================= SEE ACCOMPANYING NOTES.
17 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING ING MFS(R) AMERICAN CAPITAL ING GET ING GET CENTURY ING J.P. OPPORTUNITIES FUND - FUND - ING ALGER SMALL CAP MORGAN MID (INITIAL SERIES T SERIES U GROWTH VALUE CAP VALUE CLASS) --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $237,964 $1,048 $39 $2 $301 $1,280 --------------------------------------------------------------------------------- Total assets 237,964 1,048 39 2 301 1,280 LIABILITIES Payable to Golden American Life Insurance Company 16 - - - - - --------------------------------------------------------------------------------- Total liabilities 16 - - - - - --------------------------------------------------------------------------------- NET ASSETS $237,948 $1,048 $39 $2 $301 $1,280 ================================================================================= NET ASSETS Accumulation units $237,948 $1,048 $39 $2 $301 $1,280 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $237,948 $1,048 $39 $2 $301 $1,280 ================================================================================= Total number of mutual fund shares 23,514,212 104,710 5,928 214 32,577 67,567 ================================================================================= Cost of mutual fund shares $235,664 $1,047 $43 $2 $293 $1,561 ================================================================================= SEE ACCOMPANYING NOTES.
Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING MFS(R) CAPITAL ING SALOMON OPPORTUNITIES ING MFS(R) ING OPCAP ING PIMCO ING SALOMON BROS. (SERVICE GLOBAL BALANCED TOTAL BROS. INVESTORS CLASS) GROWTH VALUE RETURN CAPITAL VALUE --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $72 $75 $126 $593 $9 $4 --------------------------------------------------------------------------------- Total assets 72 75 126 593 9 4 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $72 $75 $126 $593 $9 $4 ================================================================================= NET ASSETS Accumulation units $72 $75 $126 $593 $9 $4 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $72 $75 $126 $593 $9 $4 ================================================================================= Total number of mutual fund shares 3,834 8,956 13,107 56,245 762 373 ================================================================================= Cost of mutual fund shares $85 $75 $131 $599 $9 $4 ================================================================================= SEE ACCOMPANYING NOTES.
18 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING T. ROWE ING UBS ING SCUDDER PRICE TACTICAL ING VAN ING VP INTERNATIONAL GROWTH ASSET KAMPEN WORLDWIDE ING VP GROWTH EQUITY ALLOCATION COMSTOCK GROWTH BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $7 $144 $2 $1,737 $27,365 $49,597 --------------------------------------------------------------------------------- Total assets 7 144 2 1,737 27,365 49,597 LIABILITIES Payable to Golden American Life Insurance Company - - - - 7 7 --------------------------------------------------------------------------------- Total liabilities - - - - 7 7 --------------------------------------------------------------------------------- NET ASSETS $7 $144 $2 $1,737 $27,358 $49,590 ================================================================================= NET ASSETS Accumulation units $7 $144 $2 $1,737 $27,358 $49,590 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $7 $144 $2 $1,737 $27,358 $49,590 ================================================================================= Total number of mutual fund shares 918 4,150 94 208,228 5,077,001 3,665,695 ================================================================================= Cost of mutual fund shares $8 $162 $2 $1,730 $32,839 $49,791 ================================================================================= SEE ACCOMPANYING NOTES.
19 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS INDEX INDEX PLUS ING VP SMALL VALUE GROWTH LARGECAP PLUS MIDCAP SMALLCAP COMPANY OPPORTUNITY --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $46 $4,590 $5,910 $4,006 $156 $1,086 --------------------------------------------------------------------------------- Total assets 46 4,590 5,910 4,006 156 1,086 LIABILITIES Payable to Golden American Life Insurance Company - 1 1 1 - - --------------------------------------------------------------------------------- Total liabilities - 1 1 1 - - --------------------------------------------------------------------------------- NET ASSETS $46 $4,589 $5,909 $4,005 $156 $1,086 ================================================================================= NET ASSETS Accumulation units $46 $4,589 $5,909 $4,005 $156 $1,086 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $46 $4,589 $5,909 $4,005 $156 $1,086 ================================================================================= Total number of mutual fund shares 6,680 423,812 499,540 403,834 13,756 111,346 ================================================================================= Cost of mutual fund shares $50 $4,673 $6,054 $4,041 $209 $1,335 ================================================================================= SEE ACCOMPANYING NOTES.
20 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP LARGE ING VP ING VP GROWTH INTERNATIONAL COMPANY LARGECAP ING VP CONVERTIBLE OPPORTUNITIES VALUE VALUE GROWTH MAGNACAP --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $1,034 $9,921 $42 $958 $1,006 $12,340 --------------------------------------------------------------------------------- Total assets 1,034 9,921 42 958 1,006 12,340 LIABILITIES Payable to Golden American Life Insurance Company - 3 - - - 2 --------------------------------------------------------------------------------- Total liabilities - 3 - - - 2 --------------------------------------------------------------------------------- NET ASSETS $1,034 $9,918 $42 $958 $1,006 $12,338 ================================================================================= NET ASSETS Accumulation units $1,034 $9,918 $42 $958 $1,006 $12,338 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $1,034 $9,918 $42 $958 $1,006 $12,338 ================================================================================= Total number of mutual fund shares 109,462 2,638,582 4,816 120,960 160,390 1,801,417 ================================================================================= Cost of mutual fund shares $1,086 $12,343 $52 $1,116 $1,054 $14,542 ================================================================================= SEE ACCOMPANYING NOTES.
21 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP INVESCO VIF INVESCO VIF MIDCAP SMALLCAP - FINANCIAL - HEALTH INVESCO VIF INVESCO VIF OPPORTUNITIES OPPORTUNITIES SERVICES SCIENCES - LEISURE - UTILITIES --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $12 $30,125 $22,946 $30,564 $6,098 $7,784 --------------------------------------------------------------------------------- Total assets 12 30,125 22,946 30,564 6,098 7,784 LIABILITIES Payable to Golden American Life Insurance Company - 7 5 6 1 1 --------------------------------------------------------------------------------- Total liabilities - 7 5 6 1 1 --------------------------------------------------------------------------------- NET ASSETS $12 $30,118 $22,941 $30,558 $6,097 $7,783 ================================================================================= NET ASSETS Accumulation units $12 $30,118 $22,941 $30,558 $6,097 $7,783 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $12 $30,118 $22,941 $30,558 $6,097 $7,783 ================================================================================= Total number of mutual fund shares 2,752 2,840,607 2,185,295 2,222,861 715,754 697,486 ================================================================================= Cost of mutual fund shares $16 $42,110 $23,502 $32,262 $6,082 $7,988 ================================================================================= SEE ACCOMPANYING NOTES.
22 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
JANUS ASPEN JANUS ASPEN JANUS ASPEN SERIES JANUS ASPEN SERIES OPPENHEIMER OPPENHEIMER SERIES FLEXIBLE SERIES WORLDWIDE GLOBAL STRATEGIC BALANCED INCOME GROWTH GROWTH SECURITIES BOND --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $496 $283 $192 $3,535 $205 $16 --------------------------------------------------------------------------------- Total assets 496 283 192 3,535 205 16 LIABILITIES Payable to Golden American Life Insurance Company - - - 1 - - --------------------------------------------------------------------------------- Total liabilities - - - 1 - - --------------------------------------------------------------------------------- NET ASSETS $496 $283 $192 $3,534 $205 $16 ================================================================================= NET ASSETS Accumulation units $496 $283 $192 $3,534 $205 $16 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $496 $283 $192 $3,534 $205 $16 ================================================================================= Total number of mutual fund shares 23,270 22,071 13,244 168,746 11,665 3,487 ================================================================================= Cost of mutual fund shares $525 $273 $224 $3,639 $244 $16 ================================================================================= SEE ACCOMPANYING NOTES.
23 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
PIMCO PIMCO STOCKSPLUS PIONEER PIONEER PIONEER HIGH GROWTH AND EQUITY-INCOME PIONEER MID-CAP SMALL YIELD INCOME VCT FUND VCT VALUE VCT COMPANY VCT --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $305,275 $181,641 $179 $20,067 $53,073 $3,418 --------------------------------------------------------------------------------- Total assets 305,275 181,641 179 20,067 53,073 3,418 LIABILITIES Payable to Golden American Life Insurance Company 38 4 - 3 11 1 --------------------------------------------------------------------------------- Total liabilities 38 4 - 3 11 1 --------------------------------------------------------------------------------- NET ASSETS $305,237 $181,637 $179 $20,064 $53,062 $3,417 ================================================================================= NET ASSETS Accumulation units $305,237 $181,637 $179 $20,064 $53,062 $3,417 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $305,237 $181,637 $179 $20,064 $53,062 $3,417 ================================================================================= Total number of mutual fund shares 42,576,723 25,044,953 11,764 1,315,882 3,571,539 376,869 ================================================================================= Cost of mutual fund shares $319,995 $240,989 $199 $21,406 $59,944 $3,947 ================================================================================= SEE ACCOMPANYING NOTES.
24 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
PRUDENTIAL SP JENNISON PUTNAM VT PROFUND VP PROFUND VP PROFUND VP PRUDENTIAL INTERNATIONAL GROWTH AND BULL EUROPE 30 SMALL-CAP JENNISON GROWTH INCOME --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $31,273 $15,629 $38,620 $37,756 $15,344 $1,662 --------------------------------------------------------------------------------- Total assets 31,273 15,629 38,620 37,756 15,344 1,662 LIABILITIES Payable to Golden American Life Insurance Company 8 2 8 8 3 - --------------------------------------------------------------------------------- Total liabilities 8 2 8 8 3 - --------------------------------------------------------------------------------- NET ASSETS $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 ================================================================================= NET ASSETS Accumulation units $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $31,265 $15,627 $38,612 $37,748 $15,341 $1,662 ================================================================================= Total number of mutual fund shares 1,527,025 867,774 1,743,448 2,972,899 3,661,627 89,142 ================================================================================= Cost of mutual fund shares $32,082 $15,970 $40,061 $39,753 $15,921 $1,902 ================================================================================= SEE ACCOMPANYING NOTES.
25 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
SMITH PUTNAM VT BARNEY SMITH INTERNATIONAL INTERNATIONAL SMITH BARNEY BARNEY GROWTH AND PUTNAM VT SMITH BARNEY ALL CAP LARGE CAP MONEY INCOME VOYAGER II HIGH INCOME GROWTH VALUE MARKET --------------------------------------------------------------------------------- ASSETS Investments in mutual funds at fair value $2,981 $1,645 $319 $201 $371 $143 --------------------------------------------------------------------------------- Total assets 2,981 1,645 319 201 371 143 LIABILITIES Payable to Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------- NET ASSETS $2,981 $1,645 $319 $201 $371 $143 ================================================================================= NET ASSETS Accumulation units $2,981 $1,645 $319 $201 $371 $143 Contracts in payout (annuitization) period - - - - - - --------------------------------------------------------------------------------- Total net assets $2,981 $1,645 $319 $201 $371 $143 ================================================================================= Total number of mutual fund shares 357,012 470,066 50,922 22,831 28,077 142,697 ================================================================================= Cost of mutual fund shares $3,378 $2,030 $533 $365 $563 $143 ================================================================================= SEE ACCOMPANYING NOTES.
26 Golden American Life Insurance Company Separate Account B Statement of Assets and Liabilities (continued) December 31, 2002 (DOLLARS IN THOUSANDS)
UBS TACTICAL ALLOCATION -------------- ASSETS Investments in mutual funds at fair value $1,548 -------------- Total assets 1,548 LIABILITIES Payable to Golden American Life Insurance Company - -------------- Total liabilities - -------------- NET ASSETS $1,548 ============== NET ASSETS Accumulation units $1,548 Contracts in payout (annuitization) period - -------------- Total net assets $1,548 ============== Total number of mutual fund shares 159,134 ============== Cost of mutual fund shares $1,802 ============== SEE ACCOMPANYING NOTES.
27 This page is intentionally left blank. 28 This page is intentionally left blank. 29 This page is intentionally left blank. 30 This page is intentionally left blank. 31 Golden American Life Insurance Company Separate Account B Statement of Operations For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $632 $- $602 $- $- $523 ------------------------------------------------------------------------------- Total investment income 632 - 602 - - 523 Expenses: Mortality and expense risk and other charges 4,742 - 929 4,657 - 6,716 Annual administrative charges 161 - 32 159 - 248 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 286 - 32 520 - 523 Other contract charges 481 - 120 154 - 368 Amortization of deferred charges related to: Deferred sales load - - - 1 - 3 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 5,670 - 1,113 5,491 - 7,858 ------------------------------------------------------------------------------- Net investment income (loss) (5,038) - (511) (5,491) - (7,335) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (14,269) - (2,018) (211,562) - (87,705) Capital gains distributions 2 - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,018) (211,562) - (87,705) Net unrealized appreciation (depreciation) of investments (74,887) (1) (8,019) 97,211 (6) (39,390) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(94,192) $(1) $(10,548) $(119,842) $(6) $(134,430) =============================================================================== SEE ACCOMPANYING NOTES.
32 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GUARDIAN GCG TRUST GCG TRUST GCG TRUST GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING DEVELOPING DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD WORLD ADVISOR MID-CAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $9,185 $16 $- $- $228 ------------------------------------------------------------------------------- Total investment income - 9,185 16 - - 228 Expenses: Mortality and expense risk and other charges - 4,101 1 1,144 - 1,361 Annual administrative charges - 124 - 50 - 43 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 185 - 93 - 62 Other contract charges - 376 - 68 - 167 Amortization of deferred charges related to: Deferred sales load - 1 - 1 - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 4,787 1 1,356 - 1,633 ------------------------------------------------------------------------------- Net investment income (loss) - 4,398 15 (1,356) - (1,405) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - 1,692 - 1,932 - (1,645) Capital gains distributions - 545 1 - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - 2,237 1 1,932 - (1,645) Net unrealized appreciation (depreciation) of investments 1 10,717 (3) (8,556) (2) (16,949) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1 $17,352 $13 $(7,980) $(2) $(19,999) =============================================================================== SEE ACCOMPANYING NOTES.
33 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST EQUITY GCG TRUST EQUITY GCG TRUST MID-CAP EQUITY GROWTH EQUITY INCOME EQUITY ADVISOR GROWTH ADVISOR INCOME ADVISOR OPPORTUNITY ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $3 $- $5,698 $7 $437 ------------------------------------------------------------------------------- Total investment income - 3 - 5,698 7 437 Expenses: Mortality and expense risk and other charges - 19 1 6,536 1 5,459 Annual administrative charges - 1 - 217 - 191 Minimum death benefit guarantee charges - - - 3 - - Contingent deferred sales charges - - - 413 - 459 Other contract charges - 2 - 399 - 287 Amortization of deferred charges related to: Deferred sales load - - - 18 - 12 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 22 1 7,586 1 6,408 ------------------------------------------------------------------------------- Net investment income (loss) - (19) (1) (1,888) 6 (5,971) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (88) - (15,791) - (150,767) Capital gains distributions - - - 1,935 3 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (88) - (13,856) 3 (150,767) Net unrealized appreciation (depreciation) of investments (4) (170) (22) (56,537) (20) 21,921 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(277) $(23) $(72,281) $(11) $(134,817) =============================================================================== SEE ACCOMPANYING NOTES.
34 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST GCG TRUST FULLY FUNDAMENTAL OPPORTUNITY FOCUS FOCUS VALUE FULLY MANAGED GROWTH ADVISOR VALUE ADVISOR MANAGED ADVISOR FOCUS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $14,219 $10 $- ------------------------------------------------------------------------------- Total investment income - - - 14,219 10 - Expenses: Mortality and expense risk and other charges - 33 - 13,275 1 11 Annual administrative charges - 1 - 486 - - Minimum death benefit guarantee charges - - - 1 - - Contingent deferred sales charges - 1 - 905 - - Other contract charges - 4 - 881 - 1 Amortization of deferred charges related to: Deferred sales load - - - 15 - - Premium taxes - - - 1 - - ------------------------------------------------------------------------------- Total expenses - 39 - 15,564 1 12 ------------------------------------------------------------------------------- Net investment income (loss) - (39) - (1,345) 9 (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (201) - 3,703 1 (17) Capital gains distributions - - - 10,018 8 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (201) - 13,721 9 (17) Net unrealized appreciation (depreciation) of investments - (90) (2) (34,916) (20) (114) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $- $(330) $(2) $(22,540) $(2) $(143) =============================================================================== SEE ACCOMPANYING NOTES.
35 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GCG TRUST ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR HARD ASSETS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $386 ------------------------------------------------------------------------------- Total investment income - - - - - 386 Expenses: Mortality and expense risk and other charges - 70 1 11,796 - 912 Annual administrative charges - 3 - 421 - 33 Minimum death benefit guarantee charges - - - - - 1 Contingent deferred sales charges - 2 - 1,183 - 39 Other contract charges - 9 - 545 - 42 Amortization of deferred charges related to: Deferred sales load - - - 5 - 1 Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 84 1 13,950 - 1,028 ------------------------------------------------------------------------------- Net investment income (loss) - (84) (1) (13,950) - (642) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (154) - (524,085) - (2,333) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (154) - (524,085) - (2,333) Net unrealized appreciation (depreciation) of investments (5) (208) 6 244,425 (5) (1,937) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5) $(446) $5 $(293,610) $(5) $(4,912) =============================================================================== SEE ACCOMPANYING NOTES.
36 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST INTERNATIONAL GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL EQUITY INTERNET ADVISOR EAFE EAFE ADVISOR EQUITY ADVISOR TOLLKEEPER ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $13 $- $1,039 $2 $- ------------------------------------------------------------------------------- Total investment income - 13 - 1,039 2 - Expenses: Mortality and expense risk and other charges - 31 - 2,195 1 142 Annual administrative charges - 1 - 68 - 5 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 205 - 3 Other contract charges - 5 - 81 - 19 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 37 - 2,549 1 169 ------------------------------------------------------------------------------- Net investment income (loss) - (24) - (1,510) 1 (169) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (285) - (18,218) - (3,259) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (285) - (18,218) - (3,259) Net unrealized appreciation (depreciation) of investments 1 29 (1) (1,709) - 32 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1 $(280) $(1) $(21,437) $1 $(3,396) =============================================================================== SEE ACCOMPANYING NOTES.
37 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST J.P. GCG TRUST J.P. MORGAN MORGAN GCG TRUST INTERNET GCG TRUST FLEMING FLEMING JANUS TOLLKEEPER GCG TRUST INVESTORS SMALL CAP SMALL CAP GROWTH AND ADVISOR INVESTORS ADVISOR EQUITY ADVISOR INCOME ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $771 $1 $- $- $527 ------------------------------------------------------------------------------- Total investment income - 771 1 - - 527 Expenses: Mortality and expense risk and other charges - 1,619 - 47 1 1,971 Annual administrative charges - 45 - 2 - 69 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 98 - 1 - 130 Other contract charges - 165 - 6 - 226 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 1,927 - 56 1 2,396 ------------------------------------------------------------------------------- Net investment income (loss) - (1,156) 1 (56) (1) (1,869) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (2,693) - (90) - (4,040) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (2,693) - (90) - (4,040) Net unrealized appreciation (depreciation) of investments (4) (23,933) - (411) (9) (22,039) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(27,782) $1 $(557) $(10) $(27,948) =============================================================================== SEE ACCOMPANYING NOTES.
38 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST JANUS GCG TRUST GCG TRUST GCG TRUST GROWTH AND GCG TRUST LARGE CAP LIMITED LIQUID INCOME LARGE CAP VALUE MATURITY GCG TRUST ASSET ADVISOR VALUE ADVISOR BOND LIQUID ASSET ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $1 $695 $- $16,692 $14,926 $2 ------------------------------------------------------------------------------- Total investment income 1 695 - 16,692 14,926 2 Expenses: Mortality and expense risk and other charges 1 4,710 1 7,274 16,952 4 Annual administrative charges - 154 - 236 607 - Minimum death benefit guarantee charges - - - 1 4 - Contingent deferred sales charges - 343 - 650 31,673 - Other contract charges - 473 - 352 686 - Amortization of deferred charges related to: Deferred sales load - - - 7 20 - Premium taxes - - - 1 7 - ------------------------------------------------------------------------------- Total expenses 1 5,680 1 8,521 49,949 4 ------------------------------------------------------------------------------- Net investment income (loss) - (4,985) (1) 8,171 (35,023) (2) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (12,529) - 5,336 - - Capital gains distributions - - - 1,065 - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (12,529) - 6,401 - - Net unrealized appreciation (depreciation) of investments (15) (66,466) (14) 9,830 - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(15) $(83,980) $(15) $24,402 $(35,023) $(2) =============================================================================== SEE ACCOMPANYING NOTES.
39 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST MANAGED GLOBAL MID-CAP GROWTH GCG TRUST REAL ESTATE GLOBAL ADVISOR GROWTH ADVISOR REAL ESTATE ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $306 $- $- $- $6,320 $7 ------------------------------------------------------------------------------- Total investment income 306 - - - 6,320 7 Expenses: Mortality and expense risk and other charges 3,679 - 9,857 - 2,682 - Annual administrative charges 115 - 303 - 104 - Minimum death benefit guarantee charges - - 1 - - - Contingent deferred sales charges 215 - 836 - 181 - Other contract charges 267 - 578 - 184 - Amortization of deferred charges related to: Deferred sales load 7 - 6 - 5 - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 4,283 - 11,581 - 3,156 - ------------------------------------------------------------------------------- Net investment income (loss) (3,977) - (11,581) - 3,164 7 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (2,654) - (502,998) - 3,631 - Capital gains distributions - - - - 1,891 2 ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (2,654) - (502,998) - 5,522 2 Net unrealized appreciation (depreciation) of investments (50,119) (2) 41,552 (9) (16,719) (2) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(56,750) $(2) $(473,027) $(9) $(8,033) $7 =============================================================================== SEE ACCOMPANYING NOTES.
40 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST RESEARCH SPECIAL SITUATIONS STRATEGIC EQUITY RESEARCH ADVISOR SITUATIONS ADVISOR EQUITY ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $2,140 $- $- $- $- $- ------------------------------------------------------------------------------- Total investment income 2,140 - - - - - Expenses: Mortality and expense risk and other charges 8,315 - 411 - 3,062 - Annual administrative charges 274 - 17 - 104 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 895 - 23 - 320 - Other contract charges 398 - 53 - 184 - Amortization of deferred charges related to: Deferred sales load 1 - - - 2 - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 9,883 - 504 - 3,672 - ------------------------------------------------------------------------------- Net investment income (loss) (7,743) - (504) - (3,672) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (159,946) - (1,565) - (113,239) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (159,946) - (1,565) - (113,239) - Net unrealized appreciation (depreciation) of investments 3,501 (3) (6,229) (1) 38,088 (1) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(164,188) $(3) $(8,298) $(1) $(78,823) $(1) =============================================================================== SEE ACCOMPANYING NOTES.
41 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST VAN KAMPEN GCG TRUST TOTAL GCG TRUST VALUE VAN KAMPEN GROWTH AND TOTAL RETURN VALUE EQUITY GROWTH AND INCOME RETURN ADVISOR EQUITY ADVISOR INCOME ADVISOR ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $19,811 $18 $1,325 $1 $5,457 $6 ------------------------------------------------------------------------------- Total investment income 19,811 18 1,325 1 5,457 6 Expenses: Mortality and expense risk and other charges 13,476 1 3,024 - 10,153 1 Annual administrative charges 457 - 102 - 334 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 1,115 - 279 - 1,058 - Other contract charges 705 - 150 - 323 - Amortization of deferred charges related to: Deferred sales load 5 - 3 - 18 - Premium taxes 1 - - - 1 - ------------------------------------------------------------------------------- Total expenses 15,759 1 3,558 - 11,887 1 ------------------------------------------------------------------------------- Net investment income (loss) 4,052 17 (2,233) 1 (6,430) 5 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 295 1 (11,165) - (9,833) 1 Capital gains distributions 409 - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions 704 1 (11,165) - (9,833) 1 Net unrealized appreciation (depreciation) of investments (67,592) (29) (27,107) (3) (100,836) (12) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(62,836) $(11) $(40,505) $(2) $(117,099) $(6) =============================================================================== SEE ACCOMPANYING NOTES.
42 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
AIM V.I. DENT AIM V.I. AIM V.I. ALLIANCE DEMOGRAPHIC AIM V.I. CAPITAL AIM V.I. PREMIER BERNSTEIN TRENDS GROWTH APPRECIATION CORE EQUITY EQUITY VALUE ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $3 ------------------------------------------------------------------------------- Total investment income - - - - - 3 Expenses: Mortality and expense risk and other charges 140 11 - - - 26 Annual administrative charges 5 - - - - 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - - - - - Other contract charges 11 - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 159 11 - - - 27 ------------------------------------------------------------------------------- Net investment income (loss) (159) (11) - - - (24) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (1,222) (108) - - - (19) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (1,222) (108) - - - (19) Net unrealized appreciation (depreciation) of investments (2,117) (102) (7) (3) (7) (241) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3,498) $(221) $(7) $(3) $(7) $(284) =============================================================================== SEE ACCOMPANYING NOTES.
43 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ALLIANCE ALLIANCE FIDELITY(R) FIDELITY(R) FIDELITY(R) FIDELITY(R) GROWTH AND PREMIER VIP VIP VIP INCOME GROWTH VIP GROWTH EQUITY-INCOME CONTRAFUND(R) OVERSEAS ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $144 $- $1 $102 $11 $- ------------------------------------------------------------------------------- Total investment income 144 - 1 102 11 - Expenses: Mortality and expense risk and other charges 54 25 114 140 44 - Annual administrative charges 1 1 5 5 1 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - 4 4 1 - Other contract charges - - 8 6 - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 58 26 131 155 46 - ------------------------------------------------------------------------------- Net investment income (loss) 86 (26) (130) (53) (35) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (72) (413) (725) (1,606) (35) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (72) (413) (725) (1,606) (35) - Net unrealized appreciation (depreciation) of investments (1,016) (166) (1,237) 62 (331) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(1,002) $(605) $(2,092) $(1,597) $(401) $- =============================================================================== SEE ACCOMPANYING NOTES.
44 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP FRANKLIN GALAXY VIP GALAXY VIP HIGH SMALL CAP GREENWICH ASSET GALAXY VIP GROWTH AND QUALITY VALUE APPRECIATION ALLOCATION EQUITY INCOME BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $10 $20 $1 $- $6 ------------------------------------------------------------------------------- Total investment income - 10 20 1 - 6 Expenses: Mortality and expense risk and other charges - 9 15 10 2 2 Annual administrative charges - 1 1 1 - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 1 - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 10 16 12 2 2 ------------------------------------------------------------------------------- Net investment income (loss) - - 4 (11) (2) 4 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (11) (192) (84) (5) 2 Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (11) (192) (84) (5) 2 Net unrealized appreciation (depreciation) of investments (3) (130) (40) (126) (42) 3 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3) $(141) $(228) $(221) $(49) $9 =============================================================================== SEE ACCOMPANYING NOTES.
45 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
GALAXY VIP SMALL ING GET ING GET ING GET ING GET ING GET COMPANY FUND - FUND - FUND - FUND - FUND - GROWTH SERIES N SERIES P SERIES Q SERIES R SERIES S ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $396 $109 $3,320 $2,458 $1,400 ------------------------------------------------------------------------------- Total investment income - 396 109 3,320 2,458 1,400 Expenses: Mortality and expense risk and other charges 1 597 3,008 2,883 2,050 1,464 Annual administrative charges - 8 (1,381) 42 36 28 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 16 95 60 52 40 Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 1 621 1,722 2,985 2,138 1,532 ------------------------------------------------------------------------------- Net investment income (loss) (1) (225) (1,613) 335 320 (132) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (7) 1 (70) (3) 48 (15) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (7) 1 (70) (3) 48 (15) Net unrealized appreciation (depreciation) of investments (23) (538) 1,644 217 1,356 1,013 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(31) $(762) $(39) $549 $1,724 $866 =============================================================================== SEE ACCOMPANYING NOTES.
46 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING ING MFS(R) AMERICAN CAPITAL ING GET ING GET CENTURY ING J.P. OPPORTUNITIES FUND - FUND - ING ALGER SMALL CAP MORGAN MID (INITIAL SERIES T SERIES U GROWTH VALUE CAP VALUE CLASS) ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $26 $- $- $- $1 $- ------------------------------------------------------------------------------- Total investment income 26 - - - 1 - Expenses: Mortality and expense risk and other charges 304 - - - 1 17 Annual administrative charges 17 - - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 3 - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 324 - - - 1 17 ------------------------------------------------------------------------------- Net investment income (loss) (298) - - - - (17) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 8 - - - (4) (59) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions 8 - - - (4) (59) Net unrealized appreciation (depreciation) of investments 2,300 - (4) - 7 (329) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $2,010 $- $(4) $- $3 $(405) =============================================================================== SEE ACCOMPANYING NOTES.
47 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING MFS(R) CAPITAL ING SALOMON OPPORTUNITIES ING MFS(R) ING OPCAP ING PIMCO ING SALOMON BROS. (SERVICE GLOBAL BALANCED TOTAL BROS. INVESTORS CLASS) GROWTH VALUE RETURN CAPITAL VALUE ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $14 $- $- ------------------------------------------------------------------------------- Total investment income - - - 14 - - Expenses: Mortality and expense risk and other charges - - - 1 - - Annual administrative charges - - - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - - - 1 - - ------------------------------------------------------------------------------- Net investment income (loss) - - - 13 - - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - - - 1 - - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - - - 1 - - Net unrealized appreciation (depreciation) of investments (13) - (5) (5) - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(13) $- $(5) $9 $- $- =============================================================================== SEE ACCOMPANYING NOTES.
48 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING T. ROWE ING UBS ING SCUDDER PRICE TACTICAL ING VAN ING VP INTERNATIONAL GROWTH ASSET KAMPEN WORLDWIDE ING VP GROWTH EQUITY ALLOCATION COMSTOCK GROWTH BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $7 $4 $1,391 ------------------------------------------------------------------------------- Total investment income - - - 7 4 1,391 Expenses: Mortality and expense risk and other charges - - - 4 443 220 Annual administrative charges - - - - 16 11 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - 1 16 33 Other contract charges - - - - 65 21 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - - - 5 540 285 ------------------------------------------------------------------------------- Net investment income (loss) - - - 2 (536) 1,106 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - - - - (2,830) 134 Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - - - - (2,830) 134 Net unrealized appreciation (depreciation) of investments - (19) - 7 (4,792) (195) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $- $(19) $- $9 $(8,158) $1,045 =============================================================================== SEE ACCOMPANYING NOTES.
49 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS INDEX PLUS INDEX PLUS ING VP SMALL VALUE GROWTH LARGECAP MIDCAP SMALLCAP COMPANY OPPORTUNITY ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $4 $11 $10 $1 $3 ------------------------------------------------------------------------------- Total investment income - 4 11 10 1 3 Expenses: Mortality and expense risk and other charges - 34 57 40 1 14 Annual administrative charges - 1 1 1 - 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - 1 1 - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 35 59 42 1 15 ------------------------------------------------------------------------------- Net investment income (loss) - (31) (48) (32) - (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (505) (505) (416) (5) (45) Capital gains distributions - - - 22 - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (505) (505) (394) (5) (45) Net unrealized appreciation (depreciation) of investments (5) (104) (180) (90) (53) (250) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5) $(640) $(733) $(516) $(58) $(307) =============================================================================== SEE ACCOMPANYING NOTES.
50 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP LARGE ING VP ING VP GROWTH INTERNATIONAL COMPANY LARGECAP ING VP CONVERTIBLE OPPORTUNITIES VALUE VALUE GROWTH MAGNACAP ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $23 $- $- $9 $4 $99 ------------------------------------------------------------------------------- Total investment income 23 - - 9 4 99 Expenses: Mortality and expense risk and other charges 11 141 - 10 13 166 Annual administrative charges - 5 - - - 5 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 4 - - - 8 Other contract charges - 20 - - - 16 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 11 170 - 10 13 195 ------------------------------------------------------------------------------- Net investment income (loss) 12 (170) - (1) (9) (96) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (15) (662) - (40) (292) (437) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (15) (662) - (40) (292) (437) Net unrealized appreciation (depreciation) of investments (53) (2,425) (10) (163) (52) (2,222) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(56) $(3,257) $(10) $(204) $(353) $(2,755) =============================================================================== SEE ACCOMPANYING NOTES.
51 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
ING VP ING VP INVESCO VIF INVESCO VIF MIDCAP SMALLCAP - FINANCIAL - HEALTH INVESCO VIF INVESCO VIF OPPORTUNITIES OPPORTUNITIES SERVICES SCIENCES - LEISURE - UTILITIES ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $148 $- $- $40 ------------------------------------------------------------------------------- Total investment income - - 148 - - 40 Expenses: Mortality and expense risk and other charges - 408 211 389 33 58 Annual administrative charges - 12 8 12 1 2 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - 8 7 10 1 2 Other contract charges - 65 18 23 5 6 Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses - 493 244 434 40 68 ------------------------------------------------------------------------------- Net investment income (loss) - (493) (96) (434) (40) (28) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments - (1,185) (1,999) (4,162) (157) (205) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions - (1,185) (1,999) (4,162) (157) (205) Net unrealized appreciation (depreciation) of investments (4) (12,282) (590) (1,617) 16 (198) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(4) $(13,960) $(2,685) $(6,213) $(181) $(431) =============================================================================== SEE ACCOMPANYING NOTES.
52 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
JANUS JANUS ASPEN ASPEN JANUS ASPEN SERIES JANUS ASPEN SERIES OPPENHEIMER OPPENHEIMER SERIES FLEXIBLE SERIES WORLDWIDE GLOBAL STRATEGIC BALANCED INCOME GROWTH GROWTH SECURITIES BOND ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $8 $6 $- $21 $- $- ------------------------------------------------------------------------------- Total investment income 8 6 - 21 - - Expenses: Mortality and expense risk and other charges 2 1 1 60 1 - Annual administrative charges - - - 1 - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - - Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 2 1 1 61 1 - ------------------------------------------------------------------------------- Net investment income (loss) 6 5 (1) (40) (1) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (3) - - (682) (6) (1) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (3) - - (682) (6) (1) Net unrealized appreciation (depreciation) of investments (29) 10 (32) (169) (38) 1 ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(26) $15 $(33) $(891) $(45) $- =============================================================================== SEE ACCOMPANYING NOTES.
53 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
PIMCO STOCKSPLUS PIONEER PIONEER PIONEER PIMCO HIGH GROWTH AND EQUITY-INCOME PIONEER MID-CAP SMALL YIELD INCOME VCT FUND VCT VALUE VCT COMPANY VCT ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $21,664 $5,561 $3 $124 $195 $1 ------------------------------------------------------------------------------- Total investment income 21,664 5,561 3 124 195 1 Expenses: Mortality and expense risk and other charges 4,283 3,303 1 191 584 39 Annual administrative charges 133 96 - 5 23 1 Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 340 374 - 3 18 - Other contract charges 248 151 - 23 48 - Amortization of deferred charges related to: Deferred sales load 1 1 - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 5,005 3,925 1 222 673 40 ------------------------------------------------------------------------------- Net investment income (loss) 16,659 1,636 2 (98) (478) (39) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (18,706) (63,970) - (1,493) (1,011) (35) Capital gains distributions - - - - 1,087 - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (18,706) (63,970) - (1,493) 76 (35) Net unrealized appreciation (depreciation) of investments (3,581) 10,124 (21) (1,359) (6,968) (577) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(5,628) $(52,210) $(19) $(2,950) $(7,370) $(651) =============================================================================== SEE ACCOMPANYING NOTES.
54 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
PRUDENTIAL SP JENNISON PUTNAM VT PROFUND VP PROFUND VP PROFUND VP PRUDENTIAL INTERNATIONAL GROWTH AND BULL EUROPE 30 SMALL-CAP JENNISON GROWTH INCOME ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $- $- $- $- $- $19 ------------------------------------------------------------------------------- Total investment income - - - - - 19 Expenses: Mortality and expense risk and other charges 422 151 516 691 251 19 Annual administrative charges 19 3 17 20 8 - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges 20 31 58 28 12 - Other contract charges 27 6 37 82 26 - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 488 191 628 821 297 19 ------------------------------------------------------------------------------- Net investment income (loss) (488) (191) (628) (821) (297) - REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (7,045) (1,793) (6,274) (12,816) (2,827) (30) Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (7,045) (1,793) (6,274) (12,816) (2,827) (30) Net unrealized appreciation (depreciation) of investments (1,022) (425) (1,582) (2,790) (897) (254) ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(8,555) $(2,409) $(8,484) $(16,427) $(4,021) $(284) =============================================================================== SEE ACCOMPANYING NOTES.
55 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
SMITH PUTNAM VT BARNEY SMITH INTERNATIONAL SMITH INTERNATIONAL SMITH BARNEY BARNEY GROWTH AND PUTNAM VT BARNEY HIGH ALL CAP LARGE CAP MONEY INCOME VOYAGER II INCOME GROWTH VALUE MARKET ------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $6 $- $82 $2 $18 $2 ------------------------------------------------------------------------------- Total investment income 6 - 82 2 18 2 Expenses: Mortality and expense risk and other charges 34 19 5 3 7 2 Annual administrative charges 1 1 - - - - Minimum death benefit guarantee charges - - - - - - Contingent deferred sales charges - - - - - 8 Other contract charges - - - - - - Amortization of deferred charges related to: Deferred sales load - - - - - - Premium taxes - - - - - - ------------------------------------------------------------------------------- Total expenses 35 20 5 3 7 10 ------------------------------------------------------------------------------- Net investment income (loss) (29) (20) 77 (1) 11 (8) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (12) (8) (33) (9) (24) - Capital gains distributions - - - - - - ------------------------------------------------------------------------------- Net realized gain (loss) on investments and capital gains distributions (12) (8) (33) (9) (24) - Net unrealized appreciation (depreciation) of investments (412) (431) (62) (67) (133) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(453) $(459) $(18) $(77) $(146) $(8) =============================================================================== SEE ACCOMPANYING NOTES.
56 Golden American Life Insurance Company Separate Account B Statement of Operations (continued) For the year ended December 31, 2002 (DOLLARS IN THOUSANDS)
UBS TACTICAL ALLOCATION -------------- NET INVESTMENT INCOME (LOSS) Income: Dividends $5 -------------- Total investment income 5 Expenses: Mortality and expense risk and other charges 17 Annual administrative charges - Minimum death benefit guarantee charges - Contingent deferred sales charges - Other contract charges - Amortization of deferred charges related to: Deferred sales load - Premium taxes - -------------- Total expenses 17 -------------- Net investment income (loss) (12) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments (15) Capital gains distributions - -------------- Net realized gain (loss) on investments and capital gains distributions (15) Net unrealized appreciation (depreciation) of investments (299) -------------- Net increase (decrease) in net assets resulting from operations $(326) ============== SEE ACCOMPANYING NOTES.
57 This page is intentionally left blank. 58 This page is intentionally left blank. 59 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST ASSET GCG TRUST CAPITAL CAPITAL GCG TRUST ALL CAP ALLOCATION CAPITAL GROWTH GUARDIAN ALL CAP ADVISOR GROWTH GROWTH ADVISOR SMALL CAP --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $104,883 $- $4,696 $463,399 $- $422,097 Increase (decrease) in net assets: Operations: Net investment income (loss) (818) - (27) (7,708) - (7,294) Net realized gain (loss) on investments and capital gains distributions (209) - (61) (21,430) - (283,317) Net unrealized appreciation (depreciation) of investments (2,272) - (644) (46,715) - 276,874 --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (3,299) - (732) (75,853) - (13,737) Changes from principal transactions: Purchase payments 110,856 - 30,995 40,288 - 72,626 Contract distributions and terminations (9,054) - (753) (22,815) - (19,753) Transfer payments from (to) other Divisions (including the fixed accounts), net 95,928 - 15,035 (9,586) - 19,278 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 1 - 2 --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 197,730 - 45,278 7,888 - 72,153 --------------------------------------------------------------------------- Total increase (decrease) 194,431 - 44,546 (67,965) - 58,416 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 299,314 - 49,242 395,434 - 480,513 Increase (decrease) in net assets: Operations: Net investment income (loss) (5,038) - (511) (5,491) - (7,335) Net realized gain (loss) on investments and capital gains distributions (14,267) - (2,018) (211,562) - (87,705) Net unrealized appreciation (depreciation) of investments (74,887) (1) (8,019) 97,211 (6) (39,390) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (94,192) (1) (10,548) (119,842) (6) (134,430) Changes from principal transactions: Purchase payments 83,489 136 11,948 22,649 150 64,429 Contract distributions and terminations (12,299) - (2,730) (16,524) - (23,540) Transfer payments from (to) other Divisions (including the fixed accounts), net (28,572) 41 (671) (34,948) 4 (45,826) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 42,618 177 8,547 (28,823) 154 (4,937) --------------------------------------------------------------------------- Total increase (decrease) (51,574) 176 (2,001) (148,665) 148 (139,367) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $247,740 $176 $47,241 $246,769 $148 $341,146 =========================================================================== SEE ACCOMPANYING NOTES.
60 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST CAPITAL GCG TRUST GUARDIAN GCG TRUST GCG TRUST DEVELOPING GCG TRUST SMALL CAP GCG TRUST CORE BOND DEVELOPING WORLD DIVERSIFIED ADVISOR CORE BOND ADVISOR WORLD ADVISOR MID-CAP ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $40,000 $- $54,398 $- $11,358 Increase (decrease) in net assets: Operations: Net investment income (loss) - (857) - (422) - (408) Net realized gain (loss) on investments and capital gains distributions - (1,057) - (8,712) - (602) Net unrealized appreciation (depreciation) of investments - 2,969 - 4,320 - 668 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - 1,055 - (4,814) - (342) Changes from principal transactions: Purchase payments - 45,161 - 11,440 - 33,892 Contract distributions and terminations - (3,062) - (3,183) - (956) Transfer payments from (to) other Divisions (including the fixed accounts), net - 31,839 - 13,624 - 13,862 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - 1 - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 73,941 - 21,882 - 46,798 ------------------------------------------------------------------------------- Total increase (decrease) - 74,996 - 17,068 - 46,456 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 114,996 - 71,466 - 57,814 Increase (decrease) in net assets: Operations: Net investment income (loss) - 4,398 15 (1,356) - (1,405) Net realized gain (loss) on investments and capital gains distributions - 2,237 1 1,932 - (1,645) Net unrealized appreciation (depreciation) of investments 1 10,717 (3) (8,556) (2) (16,949) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 1 17,352 13 (7,980) (2) (19,999) Changes from principal transactions: Purchase payments 85 135,019 872 11,601 81 38,230 Contract distributions and terminations - (11,442) - (4,659) - (3,572) Transfer payments from (to) other Divisions (including the fixed accounts), net 235 169,200 107 (10,428) - 18,686 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 320 292,777 979 (3,486) 81 53,344 ------------------------------------------------------------------------------- Total increase (decrease) 321 310,129 992 (11,466) 79 33,345 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $321 $425,125 $992 $60,000 $79 $91,159 =============================================================================== SEE ACCOMPANYING NOTES.
61 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST DIVERSIFIED GCG TRUST GCG TRUST EQUITY GCG TRUST EQUITY MID-CAP EMERGING EQUITY GROWTH EQUITY INCOME ADVISOR MARKETS GROWTH ADVISOR INCOME ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $19,953 $- $- $ 291,793 $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (46) - - 814 - Net realized gain (loss) on investments and capital gains distributions - (1,106) - - (1,482) - Net unrealized appreciation (depreciation) of investments - 898 - - (822) - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (254) - - (1,490) - Changes from principal transactions: - - 78,113 - Purchase payments - 305 - - (19,657) - Contract distributions and terminations - (580) - - 68,000 - Transfer payments from (to) other Divisions (including the fixed accounts), net - (19,424) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 4 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (19,699) - - 126,460 - ------------------------------------------------------------------------------- Total increase (decrease) - (19,953) - - 124,970 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - 416,763 - Increase (decrease) in net assets: Operations: Net investment income (loss) - - (19) (1) (1,888) 6 Net realized gain (loss) on investments and capital gains distributions - - (88) - (13,856) 3 Net unrealized appreciation (depreciation) of investments (4) - (170) (22) (56,537) (20) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (4) - (277) (23) (72,281) (11) Changes from principal transactions: Purchase payments 136 - 2,518 468 85,631 591 Contract distributions and terminations - - (48) - (20,848) - Transfer payments from (to) other Divisions (including the fixed accounts), net 88 - 2,169 13 403 60 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 2 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 224 - 4,639 481 65,188 651 ------------------------------------------------------------------------------- Total increase (decrease) 220 - 4,362 458 (7,093) 640 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $220 $- $4,362 $458 $409,670 $640 =============================================================================== SEE ACCOMPANYING NOTES.
62 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST EQUITY GCG TRUST GCG TRUST FULLY EQUITY OPPORTUNITY GCG TRUST FOCUS VALUE FULLY MANAGED OPPORTUNITY ADVISOR FOCUS VALUE ADVISOR MANAGED ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $477,934 $- $- $- $345,651 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (7,700) - - - 7,691 - Net realized gain (loss) on investments and capital gains distributions (15,294) - - - 21,548 - Net unrealized appreciation (depreciation) of investments (50,801) - - - 1,318 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (73,795) - - - 30,557 - Changes from principal transactions: Purchase payments 75,117 - - - 146,482 - Contract distributions and terminations (21,611) - - - (26,120) - Transfer payments from (to) other Divisions (including the fixed accounts), net (17,438) - - - 148,392 - Additions to assets retained in the Account by Golden American Life Insurance Company 2 - - - 9 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 36,070 - - - 268,763 - ------------------------------------------------------------------------------- Total increase (decrease) (37,725) - - - 299,320 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 440,209 - - - 644,971 - Increase (decrease) in net assets: Operations: Net investment income (loss) (5,971) - (39) - (1,345) 9 Net realized gain (loss) on investments and capital gains distributions (150,767) - (201) - 13,721 9 Net unrealized appreciation (depreciation) of investments 21,921 - (90) (2) (34,916) (20) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (134,817) - (330) (2) (22,540) (2) Changes from principal transactions: Purchase payments 34,448 32 3,044 23 223,105 900 Contract distributions and terminations (17,174) - (96) - (43,624) - Transfer payments from (to) other Divisions (including the fixed accounts), net (41,715) 2 3,313 27 133,166 (4) Additions to assets retained in the Account by Golden American Life Insurance Company 3 - - - 1 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (24,438) 34 6,261 50 312,648 896 ------------------------------------------------------------------------------- Total increase (decrease) (159,255) 34 5,931 48 290,108 894 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $280,954 $34 $5,931 $48 $935,079 $894 =============================================================================== SEE ACCOMPANYING NOTES.
63 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST FUNDAMENTAL GCG TRUST GLOBAL GCG TRUST FUNDAMENTAL GROWTH GLOBAL FRANCHISE GCG TRUST GROWTH GROWTH FOCUS ADVISOR FRANCHISE ADVISOR GROWTH ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $1,474,980 $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - (21,671) - Net realized gain (loss) on investments and capital gains distributions - - - - (652,014) - Net unrealized appreciation (depreciation) of investments - - - - 196,709 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - (476,976) - Changes from principal transactions: Purchase payments - - - - 150,918 - Contract distributions and terminations - - - - (53,998) - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - - (92,035) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - 3 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - - - 4,888 - ------------------------------------------------------------------------------- Total increase (decrease) - - - - (472,088) - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - 1,002,892 - Increase (decrease) in net assets: Operations: Net investment income (loss) (12) - (84) (1) (13,950) - Net realized gain (loss) on investments and capital gains distributions (17) - (154) - (524,085) - Net unrealized appreciation (depreciation) of investments (114) (5) (208) 6 244,425 (5) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (143) (5) (446) 5 (293,610) (5) Changes from principal transactions: Purchase payments 1,709 99 7,816 690 56,919 68 Contract distributions and terminations (21) - (161) - (35,962) - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,197 14 7,461 13 (170,198) 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2,885 113 15,116 703 (149,241) 97 ------------------------------------------------------------------------------- Total increase (decrease) 2,742 108 14,670 708 (442,851) 92 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $2,742 $108 $14,670 $708 $560,041 $92 =============================================================================== SEE ACCOMPANYING NOTES.
64 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST INTERNATIONAL INTERNATIONAL GCG TRUST GROWTH GCG TRUST HARD ASSETS ENHANCED ENHANCED INTERNATIONAL ADVISOR HARD ASSETS ADVISOR EAFE EAFE ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $41,509 $- $- $- $194,618 Increase (decrease) in net assets: Operations: Net investment income (loss) - (662) - - - (3,180) Net realized gain (loss) on investments and capital gains distributions - (1,681) - - - (66,811) Net unrealized appreciation (depreciation) of investments - (3,365) - - - 30,006 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (5,708) - - - (39,985) Changes from principal transactions: Purchase payments - 6,781 - - - 21,029 Contract distributions and terminations - (1,927) - - - (7,978) Transfer payments from (to) other Divisions (including the fixed accounts), net - (7,446) - - - (23,623) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (2,592) - - - (10,572) ------------------------------------------------------------------------------- Total increase (decrease) - (8,300) - - - (50,557) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 33,209 - - - 144,061 Increase (decrease) in net assets: Operations: Net investment income (loss) - (642) - (24) - (1,510) Net realized gain (loss) on investments and capital gains distributions - (2,333) - (285) - (18,218) Net unrealized appreciation (depreciation) of investments (5) (1,937) 1 29 (1) (1,709) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (5) (4,912) 1 (280) (1) (21,437) Changes from principal transactions: Purchase payments 68 10,388 63 2,749 166 15,966 Contract distributions and terminations - (2,996) - (61) - (6,869) Transfer payments from (to) other Divisions (including the fixed accounts), net 29 32,064 33 2,582 - (11,244) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 97 39,456 96 5,270 166 (2,147) ------------------------------------------------------------------------------- Total increase (decrease) 92 34,544 97 4,990 165 (23,584) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $92 $67,753 $97 $4,990 $165 $120,477 =============================================================================== SEE ACCOMPANYING NOTES.
65 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST J.P. MORGAN INTERNATIONAL GCG TRUST INTERNET GCG TRUST FLEMING EQUITY INTERNET TOLLKEEPER GCG TRUST INVESTORS SMALL CAP ADVISOR TOLLKEEPER ADVISOR INVESTORS ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $21,558 $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (27) - (325) - - Net realized gain (loss) on investments and capital gains distributions - (152) - (368) - - Net unrealized appreciation (depreciation) of investments - (1) - (3,000) - - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (180) - (3,693) - - Changes from principal transactions: Purchase payments - 3,417 - 41,981 - - Contract distributions and terminations - (36) - (2,329) - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 2,188 - 33,883 - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 5,569 - 73,535 - - ------------------------------------------------------------------------------- Total increase (decrease) - 5,389 - 69,842 - - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 5,389 - 91,400 - - Increase (decrease) in net assets: Operations: Net investment income (loss) 1 (169) - (1,156) 1 (56) Net realized gain (loss) on investments and capital gains distributions - (3,259) - (2,693) - (90) Net unrealized appreciation (depreciation) of investments - 32 (4) (23,933) - (411) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 1 (3,396) (4) (27,782) 1 (557) Changes from principal transactions: Purchase payments 218 7,425 42 33,925 267 5,453 Contract distributions and terminations - (281) - (3,916) - (116) Transfer payments from (to) other Divisions (including the fixed accounts), net 35 3,665 15 (1,491) 29 4,710 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 253 10,809 57 28,518 296 10,047 ------------------------------------------------------------------------------- Total increase (decrease) 254 7,413 53 736 297 9,490 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $254 $12,802 $53 $92,136 $297 $9,490 =============================================================================== SEE ACCOMPANYING NOTES.
66 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST J.P GCG TRUST MORGAN GCG TRUST JANUS GCG TRUST GCG TRUST FLEMING JANUS GROWTH AND GCG TRUST LARGE CAP LIMITED SMALL CAP GROWTH AND INCOME LARGE CAP VALUE MATURITY ADVISOR INCOME ADVISOR VALUE ADVISOR BOND ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $12,726 $- $98,545 $- $200,958 Increase (decrease) in net assets: Operations: Net investment income (loss) - (420) - (2,813) - 8,924 Net realized gain (loss) on investments and capital gains distributions - (175) - (343) - 4,818 Net unrealized appreciation (depreciation) of investments - (3,724) - (1,637) - 3,378 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (4,319) - (4,793) - 17,120 Changes from principal transactions: Purchase payments - 56,119 - 114,157 - 94,671 Contract distributions and terminations - (1,615) - (6,489) - (16,054) Transfer payments from (to) other Divisions (including the fixed accounts), net - 29,809 - 74,069 - 67,367 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 84,313 - 181,737 - 145,984 ------------------------------------------------------------------------------- Total increase (decrease) - 79,994 - 176,944 - 163,104 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 92,720 - 275,489 - 364,062 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (1,869) - (4,985) (1) 8,171 Net realized gain (loss) on investments and capital gains distributions - (4,040) - (12,529) - 6,401 Net unrealized appreciation (depreciation) of investments (9) (22,039) (15) (66,466) (14) 9,830 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from (10) (27,948) (15) (83,980) (15) 24,402 operations Changes from principal transactions: Purchase payments 462 55,155 541 90,790 307 96,571 Contract distributions and terminations - (4,880) - (11,843) - (30,028) Transfer payments from (to) other Divisions (including the fixed accounts), net 59 15,298 61 25,232 41 103,934 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 521 65,573 602 104,179 348 170,477 ------------------------------------------------------------------------------- Total increase (decrease) 511 37,625 587 20,199 333 194,879 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $511 $130,345 $587 $295,688 $333 $558,941 =============================================================================== SEE ACCOMPANYING NOTES.
67 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST LIQUID GCG TRUST MANAGED GCG TRUST MID-CAP GCG TRUST ASSET MANAGED GLOBAL MID-CAP GROWTH LIQUID ASSET ADVISOR GLOBAL ADVISOR GROWTH ADVISOR ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $679,666 $- $228,347 $- $1,158,061 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (1,253) - (3,832) - (14,522) - Net realized gain (loss) on investments and capital gains distributions - - (98,932) - (607,476) - Net unrealized appreciation (depreciation) of investments - - 72,788 - 312,790 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (1,253) - (29,976) - (309,208) - Changes from principal transactions: Purchase payments 591,523 - 58,076 - 180,227 - Contract distributions and terminations (449,815) - (10,294) - (45,653) - Transfer payments from (to) other Divisions (including the fixed accounts), net 251,363 - 4,232 - (55,138) - Additions to assets retained in the Account by Golden American Life Insurance Company 1 - 3 - 1 - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 393,072 - 52,017 - 79,437 - ------------------------------------------------------------------------------- Total increase (decrease) 391,819 - 22,041 - (229,771) - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,071,485 - 250,388 - 928,290 - Increase (decrease) in net assets: Operations: Net investment income (loss) (35,023) (2) (3,977) - (11,581) - Net realized gain (loss) on investments and capital gains distributions - - (2,654) - (502,998) - Net unrealized appreciation (depreciation) of investments - - (50,119) (2) 41,552 (9) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (35,023) (2) (56,750) (2) (473,027) (9) Changes from principal transactions: Purchase payments 454,243 3,191 48,234 31 86,280 231 Contract distributions and terminations (594,093) - (12,917) - (30,288) - Transfer payments from (to) other Divisions (including the fixed accounts), net 126,567 (1,389) (5,872) 21 (75,674) 327 Additions to assets retained in the Account by Golden American Life Insurance Company - - 1 - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (13,283) 1,802 29,446 52 (19,682) 558 ------------------------------------------------------------------------------- Total increase (decrease) (48,306) 1,800 (27,304) 50 (492,709) 549 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $1,023,179 $1,800 $223,084 $50 $435,581 $549 =============================================================================== SEE ACCOMPANYING NOTES.
68 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST GCG TRUST MARKET GCG TRUST REAL ESTATE GCG TRUST RESEARCH SPECIAL MANAGER REAL ESTATE ADVISOR RESEARCH ADVISOR SITUATIONS ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $6,619 $100,303 $- $800,528 $- $5,891 Increase (decrease) in net assets: Operations: Net investment income (loss) (545) 2,682 - (11,613) - (241) Net realized gain (loss) on investments and capital gains distributions 3,429 6,128 - 2,768 - (359) Net unrealized appreciation (depreciation) of investments (3,695) (3,608) - (178,581) - (769) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (811) 5,202 - (187,426) - (1,369) Changes from principal transactions: Purchase payments (168) 23,104 - 98,910 - 12,758 Contract distributions and terminations (10) (4,974) - (32,070) - (535) Transfer payments from (to) other Divisions (including the fixed accounts), net (5,630) 2,531 - (42,232) - 7,580 Additions to assets retained in the Account by Golden American Life Insurance Company - 3 - 1 - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (5,808) 20,664 - 24,609 - 19,803 ------------------------------------------------------------------------------- Total increase (decrease) (6,619) 25,866 - (162,817) - 18,434 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 126,169 - 637,711 - 24,325 Increase (decrease) in net assets: Operations: Net investment income (loss) - 3,164 7 (7,743) - (504) Net realized gain (loss) on investments and capital gains distributions - 5,522 2 (159,946) - (1,565) Net unrealized appreciation (depreciation) of investments - (16,719) (2) 3,501 (3) (6,229) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (8,033) 7 (164,188) (3) (8,298) Changes from principal transactions: Purchase payments - 44,924 243 51,406 254 6,311 Contract distributions and terminations - (8,734) - (28,260) - (834) Transfer payments from (to) other Divisions (including the fixed accounts), net - 33,281 26 (75,634) 75 290 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 69,471 269 (52,488) 329 5,767 ------------------------------------------------------------------------------- Total increase (decrease) - 61,438 276 (216,676) 326 (2,531) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $- $187,607 $276 $421,035 $326 $21,794 =============================================================================== SEE ACCOMPANYING NOTES.
69 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST GCG TRUST SPECIAL GCG TRUST STRATEGIC GCG TRUST TOTAL GCG TRUST SITUATIONS STRATEGIC EQUITY TOTAL RETURN VALUE ADVISOR EQUITY ADVISOR RETURN ADVISOR EQUITY ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $359,734 $- $608,868 $- $180,722 Increase (decrease) in net assets: Operations: Net investment income (loss) - (5,301) - 21,062 - (1,768) Net realized gain (loss) on investments and capital gains distributions - (127,454) - 17,228 - 265 Net unrealized appreciation (depreciation) of investments - 52,004 - (46,531) - (14,146) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (80,751) - (8,241) - (15,649) Changes from principal transactions: Purchase payments - 38,833 - 174,830 - 32,137 Contract distributions and terminations - (13,819) - (38,220) - (9,292) Transfer payments from (to) other Divisions (including the fixed accounts), net - (44,615) - 56,153 - 11,120 Additions to assets retained in the Account by Golden American Life Insurance Company - - - 4 - 1 ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (19,601) - 192,767 - 33,966 ------------------------------------------------------------------------------- Total increase (decrease) - (100,352) - 184,526 - 18,317 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 259,382 - 793,394 - 199,039 Increase (decrease) in net assets: Operations: Net investment income (loss) - (3,672) - 4,052 17 (2,233) Net realized gain (loss) on investments and capital gains distributions - (113,239) - 704 1 (11,165) Net unrealized appreciation (depreciation) of investments (1) 38,088 (1) (67,592) (29) (27,107) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (1) (78,823) (1) (62,836) (11) (40,505) Changes from principal transactions: Purchase payments 36 15,000 61 155,432 976 24,266 Contract distributions and terminations - (9,725) - (47,311) - (9,725) Transfer payments from (to) other Divisions (including the fixed accounts), net 21 (45,983) 18 14,587 (10) 164 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 57 (40,707) 79 122,708 966 14,705 ------------------------------------------------------------------------------- Total increase (decrease) 56 (119,530) 78 59,872 955 (25,800) ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $56 $139,852 $78 $853,266 $955 $173,239 =============================================================================== SEE ACCOMPANYING NOTES.
70 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GCG TRUST GCG TRUST VAN KAMPEN AIM V.I. GCG TRUST VAN KAMPEN GROWTH & DENT AIM V.I. VALUE EQUITY GROWTH AND INCOME DEMOGRAPHIC AIM V.I. CAPITAL ADVISOR INCOME ADVISOR TRENDS GROWTH APPRECIATION ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $860,338 $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (11,298) - (3) - - Net realized gain (loss) on investments and capital gains distributions - 30,166 - 3 - - Net unrealized appreciation (depreciation) of investments - (137,786) - (12) 18 - ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (118,918) - (12) 18 - Changes from principal transactions: Purchase payments - 70,829 - 404 137 - Contract distributions and terminations - (39,067) - (5) (1) - Transfer payments from (to) other Divisions (including the fixed accounts), net - (41,139) - 3,163 289 - Additions to assets retained in the Account by Golden American Life Insurance Company - 6 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - (9,371) - 3,562 425 - ------------------------------------------------------------------------------- Total increase (decrease) - (128,289) - 3,550 443 - ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 732,049 - 3,550 443 - Increase (decrease) in net assets: Operations: Net investment income (loss) 1 (6,430) 5 (159) (11) - Net realized gain (loss) on investments and capital gains distributions - (9,833) 1 (1,222) (108) - Net unrealized appreciation (depreciation) of investments (3) (100,836) (12) (2,117) (102) (7) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2) (117,099) (6) (3,498) (221) (7) Changes from principal transactions: Purchase payments 62 44,218 960 9,229 663 24 Contract distributions and terminations - (36,216) - (233) (18) - Transfer payments from (to) other Divisions (including the fixed accounts), net 47 (68,345) 36 2,287 (19) 10 Additions to assets retained in the Account by Golden American Life Insurance Company - 1 - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from 109 (60,342) 996 11,283 626 34 principal transactions ------------------------------------------------------------------------------- Total increase (decrease) 107 (177,441) 990 7,785 405 27 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $107 $554,608 $990 $11,335 $848 $27 =============================================================================== SEE ACCOMPANYING NOTES.
71 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
AIM V.I. ALLIANCE ALLIANCE ALLIANCE FIDELITY(R) AIM V.I. PREMIER BERNSTEIN GROWTH AND PREMIER VIP CORE EQUITY EQUITY VALUE INCOME GROWTH GROWTH ------------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - (2) (4) (3) (2) Net realized gain (loss) on investments and capital gains distributions - - (5) (3) (6) (4) Net unrealized appreciation (depreciation) of investments - - 18 41 61 36 ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - 11 34 52 30 Changes from principal transactions: Purchase payments - - 463 1,467 921 578 Contract distributions and terminations - - (1) (3) (1) (12) Transfer payments from (to) other Divisions (including the fixed accounts), net - - 122 155 119 97 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - 584 1,619 1,039 663 ------------------------------------------------------------------------------- Total increase (decrease) - - 595 1,653 1,091 693 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - 595 1,653 1,091 693 Increase (decrease) in net assets: Operations: Net investment income (loss) - - (24) 86 (26) (130) Net realized gain (loss) on investments and capital gains distributions - - (19) (72) (413) (725) Net unrealized appreciation (depreciation) of investments (3) (7) (241) (1,016) (166) (1,237) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (3) (7) (284) (1,002) (605) (2,092) Changes from principal transactions: Purchase payments 41 69 1,019 3,457 942 13,555 Contract distributions and terminations - - (44) (100) (74) (197) Transfer payments from (to) other Divisions (including the fixed accounts), net 3 18 1,423 722 740 11,253 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 44 87 2,398 4,079 1,608 24,611 ------------------------------------------------------------------------------- Total increase (decrease) 41 80 2,114 3,077 1,003 22,519 ------------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $41 $80 $2,709 $4,730 $2,094 $23,212 =============================================================================== SEE ACCOMPANYING NOTES.
72 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
FRANKLIN FIDELITY(R) FIDELITY(R) FIDELITY(R) SMALL CAP GALAXY VIP VIP VIP VIP VALUE GREENWICH ASSET EQUITY-INCOME CONTRAFUND(R) OVERSEAS SECURITIES APPRECIATION ALLOCATION ------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $831 $1,387 Increase (decrease) in net assets: Operations: Net investment income (loss) (5) (3) - - (7) 5 Net realized gain (loss) on investments and capital gains distributions (4) - - - 1 (14) Net unrealized appreciation (depreciation) of investments 63 51 - - (46) (136) ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 54 48 - - (52) (145) Changes from principal transactions: Purchase payments 1,658 1,001 - - 5 105 Contract distributions and terminations (10) (2) - - (44) (76) Transfer payments from (to) other Divisions (including the fixed accounts), net 247 136 - - (17) (11) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions 1,895 1,135 - - (56) 18 ------------------------------------------------------------------------------ Total increase (decrease) 1,949 1,183 - - (108) (127) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2001 1,949 1,183 - - 723 1,260 Increase (decrease) in net assets: Operations: Net investment income (loss) (53) (35) - - - 4 Net realized gain (loss) on investments and capital gains distributions (1,606) (35) - - (11) (192) Net unrealized appreciation (depreciation) of investments 62 (331) - (3) (130) (40) ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (1,597) (401) - (3) (141) (228) Changes from principal transactions: Purchase payments 12,283 3,038 9 20 15 1 Contract distributions and terminations (287) (57) - - (5) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 11,503 675 - - (3) (377) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions 23,499 3,656 9 20 7 (401) ------------------------------------------------------------------------------ Total increase (decrease) 21,902 3,255 9 17 (134) (629) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2002 $23,851 $4,438 $9 $17 $589 $631 ============================================================================== SEE ACCOMPANYING NOTES.
73 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
GALAXY VIP GALAXY VIP GALAXY VIP HIGH SMALL ING GET ING GET GALAXY VIP GROWTH AND QUALITY COMPANY FUND - FUND - EQUITY INCOME BOND GROWTH SERIES N SERIES P ------------------------------------------------------------------------------ NET ASSETS AT JANUARY 1, 2001 $1,071 $ 284 $78 $72 $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (20) (4) 5 (1) 28 (79) Net realized gain (loss) on investments and capital gains distributions (45) (9) 1 (1) 72 - Net unrealized appreciation (depreciation) of investments (162) (14) 1 1 661 293 ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (227) (27) 7 (1) 761 214 Changes from principal transactions: Purchase payments 87 48 33 9 1,687 6,196 Contract distributions and terminations (87) (11) (4) - (135) (202) Transfer payments from (to) other Divisions (including the fixed accounts), net (37) (93) 38 4 28,555 146,837 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions (37) (56) 67 13 30,107 152,831 ------------------------------------------------------------------------------ Total increase (decrease) (264) (83) 74 12 30,868 153,045 ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2001 807 201 152 84 30,868 153,045 Increase (decrease) in net assets: Operations: Net investment income (loss) (11) (2) 4 (1) (225) (1,613) Net realized gain (loss) on investments and capital gains distributions (84) (5) 2 (7) 1 (70) Net unrealized appreciation (depreciation) of investments (126) (42) 3 (23) (538) 1,644 ------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations (221) (49) 9 (31) (762) (39) Changes from principal transactions: Purchase payments 15 4 - 12 (8) (437) Contract distributions and terminations (33) (14) (4) (5) (792) (3,496) Transfer payments from (to) other Divisions (including the fixed accounts), net (81) (20) (27) (3) (645) (5,227) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ------------------------------------------------------------------------------ Increase (decrease) in net assets derived from principal transactions (99) (30) (31) 4 (1,445) (9,160) ------------------------------------------------------------------------------ Total increase (decrease) (320) (79) (22) (27) (2,207) (9,199) ------------------------------------------------------------------------------ NET ASSETS AT DECEMBER 31, 2002 $487 $122 $130 $57 $28,661 $143,846 ============================================================================== SEE ACCOMPANYING NOTES.
74 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING GET ING GET ING GET ING GET ING GET FUND - FUND - FUND - FUND - FUND - ING ALGER SERIES Q SERIES R SERIES S SERIES T SERIES U GROWTH ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - - - Net realized gain (loss) on investments and capital gains distributions - - - - - - Net unrealized appreciation (depreciation) of investments - - - - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - - - Changes from principal transactions: Purchase payments - - - - - - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 1,904 - - - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,904 - - - - - ----------------------------------------------------------------------------- Total increase (decrease) 1,904 - - - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,904 - - - - - Increase (decrease) in net assets: Operations: Net investment income (loss) 335 320 (132) (298) - - Net realized gain (loss) on investments and capital gains distributions (3) 48 (15) 8 - - Net unrealized appreciation (depreciation) of investments 217 1,356 1,013 2,300 - (4) ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 549 1,724 866 2,010 - (4) Changes from principal transactions: Purchase payments 2,717 2,413 3,067 6,518 466 43 Contract distributions and terminations (2,304) (2,081) (1,591) (152) - - Transfer payments from (to) other Divisions (including the fixed accounts), net 166,163 168,470 216,928 229,572 582 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 166,576 168,802 218,404 235,938 1,048 43 ----------------------------------------------------------------------------- Total increase (decrease) 167,125 170,526 219,270 237,948 1,048 39 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $169,029 $170,526 $219,270 $237,948 $1,048 $39 ============================================================================= SEE ACCOMPANYING NOTES.
75 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING ING MFS(R) ING MFS(R) AMERICAN CAPITAL CAPITAL CENTURY ING J.P. OPPORTUNITIES OPPORTUNITIES ING MFS(R) ING OPCAP SMALL CAP MORGAN MID (INITIAL (SERVICE GLOBAL BALANCED VALUE CAP VALUE CLASS) CLASS) GROWTH VALUE ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - (2) - - - Net realized gain (loss) on investments and capital gains distributions - - (2) - - - Net unrealized appreciation (depreciation) of investments - - 48 - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - 44 - - - Changes from principal transactions: Purchase payments - - 625 - - - Contract distributions and terminations - - (3) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - 32 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - 654 - - - ----------------------------------------------------------------------------- Total increase (decrease) - - 698 - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - 698 - - - Increase (decrease) in net assets: Operations: Net investment income (loss) - - (17) - - - Net realized gain (loss) on investments and capital gains distributions - (4) (59) - - - Net unrealized appreciation (depreciation) of investments - 7 (329) (13) - (5) ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - 3 (405) (13) - (5) Changes from principal transactions: Purchase payments 2 140 717 85 66 131 Contract distributions and terminations - - (25) - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 158 295 - 9 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2 298 987 85 75 131 ----------------------------------------------------------------------------- Total increase (decrease) 2 301 582 72 75 126 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $2 $301 $1,280 $72 $75 $126 ============================================================================= SEE ACCOMPANYING NOTES.
76 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING ING SALOMON ING T. ROWE ING UBS ING PIMCO SALOMON BROS. ING SCUDDER PRICE TACTICAL TOTAL BROS. INVESTORS INTERNATIONAL GROWTH ASSET RETURN CAPITAL VALUE GROWTH EQUITY ALLOCATION ----------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - - - - - - Net realized gain (loss) on investments and capital gains distributions - - - - - - Net unrealized appreciation (depreciation) of investments - - - - - - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - - - - - - Changes from principal transactions: Purchase payments - - - - - - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - - - - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - - - - - - ----------------------------------------------------------------------------- Total increase (decrease) - - - - - - ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - - - - - - Increase (decrease) in net assets: Operations: Net investment income (loss) 13 - - - - - Net realized gain (loss) on investments and capital gains distributions 1 - - - - - Net unrealized appreciation (depreciation) of investments (5) - - - (19) - ----------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 9 - - - (19) - Changes from principal transactions: Purchase payments 585 9 4 7 163 - Contract distributions and terminations - - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net (1) - - - - 2 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ----------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 584 9 4 7 163 2 ----------------------------------------------------------------------------- Total increase (decrease) 593 9 4 7 144 2 ----------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $593 $9 $4 $7 $144 $2 ============================================================================= SEE ACCOMPANYING NOTES.
77 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VAN ING VP ING VP ING VP KAMPEN WORLDWIDE ING VP ING VP INDEX PLUS INDEX PLUS COMSTOCK GROWTH BOND GROWTH LARGECAP MIDCAP ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $ 5,554 $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (237) - - 2 (2) Net realized gain (loss) on investments and capital gains distributions - (1,558) - - (4) (5) Net unrealized appreciation (depreciation) of investments - (466) - - 21 35 ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations - (2,261) - - 19 28 Changes from principal transactions: Purchase payments - 12,903 - - 834 684 Contract distributions and terminations - (485) - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net - 4,303 - - (41) 108 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions - 16,721 - - 793 792 ---------------------------------------------------------------------------- Total increase (decrease) - 14,460 - - 812 820 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 - 20,014 - - 812 820 Increase (decrease) in net assets: Operations: Net investment income (loss) 2 (536) 1,106 - (31) (48) Net realized gain (loss) on investments and capital gains distributions - (2,830) 134 - (505) (505) Net unrealized appreciation (depreciation) of investments 7 (4,792) (195) (5) (104) (180) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 9 (8,158) 1,045 (5) (640) (733) Changes from principal transactions: Purchase payments 1,591 15,820 11,426 51 3,070 4,161 Contract distributions and terminations (13) (673) (720) - (85) (74) Transfer payments from (to) other Divisions (including the fixed accounts), net 150 355 37,839 - 1,432 1,735 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,728 15,502 48,545 51 4,417 5,822 ---------------------------------------------------------------------------- Total increase (decrease) 1,737 7,344 49,590 46 3,777 5,089 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $1,737 $27,358 $49,590 $46 $4,589 $5,909 ============================================================================ SEE ACCOMPANYING NOTES.
78 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VP ING VP ING VP ING VP ING VP INDEX PLUS SMALL VALUE ING VP GROWTH INTERNATIONAL SMALLCAP COMPANY OPPORTUNITY CONVERTIBLE OPPORTUNITIES VALUE ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (2) - (1) (4) (27) - Net realized gain (loss) on investments and capital gains distributions (2) - (1) 5 (189) - Net unrealized appreciation (depreciation) of investments 55 - - 2 3 - ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 51 - (2) 3 (213) - Changes from principal transactions: Purchase payments 489 - 289 146 3,287 - Contract distributions and terminations - - - - (61) - Transfer payments from (to) other Divisions (including the fixed accounts), net 140 - 11 45 2,206 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 629 - 300 191 5,432 - ---------------------------------------------------------------------------- Total increase (decrease) 680 - 298 194 5,219 - ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 680 - 298 194 5,219 - Increase (decrease) in net assets: Operations: Net investment income (loss) (32) - (12) 12 (170) - Net realized gain (loss) on investments and capital gains distributions (394) (5) (45) (15) (662) - Net unrealized appreciation (depreciation) of investments (90) (53) (250) (53) (2,425) (10) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (516) (58) (307) (56) (3,257) (10) Changes from principal transactions: Purchase payments 3,269 237 981 673 6,716 52 Contract distributions and terminations (43) - (24) (11) (246) - Transfer payments from (to) other Divisions (including the fixed accounts), net 615 (23) 138 234 1,486 - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 3,841 214 1,095 896 7,956 52 ---------------------------------------------------------------------------- Total increase (decrease) 3,325 156 788 840 4,699 42 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $4,005 $156 $1,086 $1,034 $9,918 $42 ============================================================================ SEE ACCOMPANYING NOTES.
79 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
ING VP LARGE ING VP ING VP ING VP INVESCO VIF COMPANY LARGECAP ING VP MIDCAP SMALLCAP - FINANCIAL VALUE GROWTH MAGNACAP OPPORTUNITIES OPPORTUNITIES SERVICES ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (2) (6) - (80) 5 Net realized gain (loss) on investments and capital gains distributions 2 - (8) - (918) 25 Net unrealized appreciation (depreciation) of investments 4 3 20 - 297 33 ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 5 1 6 - (701) 63 Changes from principal transactions: Purchase payments 343 488 3,746 - 8,651 822 Contract distributions and terminations (1) - (117) - (133) (4) Transfer payments from (to) other Divisions (including the fixed accounts), net (191) 44 1,767 - 6,620 1,523 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 151 532 5,396 - 15,138 2,341 ---------------------------------------------------------------------------- Total increase (decrease) 156 533 5,402 - 14,437 2,404 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 156 533 5,402 - 14,437 2,404 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) (9) (96) - (493) (96) Net realized gain (loss) on investments and capital gains distributions (40) (292) (437) - (1,185) (1,999) Net unrealized appreciation (depreciation) of investments (163) (52) (2,222) (4) (12,282) (590) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (204) (353) (2,755) (4) (13,960) (2,685) Changes from principal transactions: Purchase payments 575 719 7,453 16 24,037 11,708 Contract distributions and terminations (15) (40) (335) - (584) (419) Transfer payments from (to) other Divisions (including the fixed accounts), net 446 147 2,573 - 6,188 11,933 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,006 826 9,691 16 29,641 23,222 ---------------------------------------------------------------------------- Total increase (decrease) 802 473 6,936 12 15,681 20,537 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $958 $1,006 $12,338 $12 $30,118 $22,941 ============================================================================ SEE ACCOMPANYING NOTES.
80 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
JANUS ASPEN JANUS INVESCO VIF INVESCO JANUS ASPEN SERIES ASPEN - HEALTH VIF - INVESCO VIF SERIES FLEXIBLE SERIES SCIENCES LEISURE - UTILITIES BALANCED INCOME GROWTH ---------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) 22 - 3 - - - Net realized gain (loss) on investments and capital gains distributions 16 - 4 - - - Net unrealized appreciation (depreciation) of investments (81) - (6) - - - ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (43) - 1 - - - Changes from principal transactions: Purchase payments 1,234 - 325 - - - Contract distributions and terminations (55) - - - - - Transfer payments from (to) other Divisions (including the fixed accounts), net 9,654 - 638 - - - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 10,833 - 963 - - - ---------------------------------------------------------------------------- Total increase (decrease) 10,790 - 964 - - - ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 10,790 - 964 - - - Increase (decrease) in net assets: Operations: Net investment income (loss) (434) (40) (28) 6 5 (1) Net realized gain (loss) on investments and capital gains distributions (4,162) (157) (205) (3) - - Net unrealized appreciation (depreciation) of investments (1,617) 16 (198) (29) 10 (32) ---------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (6,213) (181) (431) (26) 15 (33) Changes from principal transactions: Purchase payments 14,819 4,483 2,753 548 270 225 Contract distributions and terminations (1,044) (74) (128) (2) (1) - Transfer payments from (to) other Divisions (including the fixed accounts), net 12,206 1,869 4,625 (24) (1) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - ---------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 25,981 6,278 7,250 522 268 225 ---------------------------------------------------------------------------- Total increase (decrease) 19,768 6,097 6,819 496 283 192 ---------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $30,558 $6,097 $7,783 $496 $283 $192 ============================================================================ SEE ACCOMPANYING NOTES.
81 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
JANUS ASPEN PIMCO SERIES OPPENHEIMER OPPENHEIMER STOCKSPLUS PIONEER WORLDWIDE GLOBAL STRATEGIC PIMCO HIGH GROWTH AND EQUITY-INCOME GROWTH SECURITIES BOND YIELD INCOME VCT --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $162,857 $258,484 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (2) - - 12,879 5,699 - Net realized gain (loss) on investments and capital gains distributions (4) - - (12,967) (21,014) - Net unrealized appreciation (depreciation) of investments 64 - - 448 (20,466) - --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 58 - - 360 (35,781) - Changes from principal transactions: Purchase payments 1,166 - - 56,951 34,841 - Contract distributions and terminations (7) - - (12,056) (11,973) - Transfer payments from (to) other Divisions (including the fixed accounts), net 81 - - 28,231 (4,506) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 1,240 - - 73,126 18,362 - --------------------------------------------------------------------------- Total increase (decrease) 1,298 - - 73,486 (17,419) - --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 1,298 - - 236,343 241,065 - Increase (decrease) in net assets: Operations: Net investment income (loss) (40) (1) - 16,659 1,636 2 Net realized gain (loss) on investments and capital gains distributions (682) (6) (1) (18,706) (63,970) - Net unrealized appreciation (depreciation) of investments (169) (38) 1 (3,581) 10,124 (21) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (891) (45) - (5,628) (52,210) (19) Changes from principal transactions: Purchase payments 3,277 273 51 55,612 25,548 198 Contract distributions and terminations (141) (3) - (15,056) (10,918) - Transfer payments from (to) other Divisions (including the fixed accounts), net (9) (20) (35) 33,966 (21,848) - Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 3,127 250 16 74,522 (7,218) 198 --------------------------------------------------------------------------- Total increase (decrease) 2,236 205 16 68,894 (59,428) 179 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $3,534 $205 $16 $305,237 $181,637 $179 =========================================================================== SEE ACCOMPANYING NOTES.
82 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
PIONEER PIONEER PIONEER MID-CAP SMALL PROFUND VP PROFUND VP PROFUND VP FUND VCT VALUE VCT COMPANY VCT BULL EUROPE 30 SMALL-CAP --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $- $- $- $- $- $- Increase (decrease) in net assets: Operations: Net investment income (loss) - (4) (3) (82) (88) (94) Net realized gain (loss) on investments and capital gains distributions 3 - (7) (640) (4,198) (1,538) Net unrealized appreciation (depreciation) of investments 20 97 49 214 83 141 --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 23 93 39 (508) (4,203) (1,491) Changes from principal transactions: Purchase payments 1,074 620 857 3,580 1,157 2,754 Contract distributions and terminations (6) (6) - (153) (293) (281) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,184 4,432 42 17,664 9,651 18,986 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 2,252 5,046 899 21,091 10,515 21,459 --------------------------------------------------------------------------- Total increase (decrease) 2,275 5,139 938 20,583 6,312 19,968 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 2,275 5,139 938 20,583 6,312 19,968 Increase (decrease) in net assets: Operations: Net investment income (loss) (98) (478) (39) (488) (191) (628) Net realized gain (loss) on investments and capital gains distributions (1,493) 76 (35) (7,045) (1,793) (6,274) Net unrealized appreciation (depreciation) of investments (1,359) (6,968) (577) (1,022) (425) (1,582) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2,950) (7,370) (651) (8,555) (2,409) (8,484) Changes from principal transactions: Purchase payments 10,991 22,661 2,180 5,734 2,797 11,484 Contract distributions and terminations (339) (1,418) (56) (1,352) (941) (4,103) Transfer payments from (to) other Divisions (including the fixed accounts), net 10,087 34,050 1,006 14,855 9,868 19,747 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 20,739 55,293 3,130 19,237 11,724 27,128 --------------------------------------------------------------------------- Total increase (decrease) 17,789 47,923 2,479 10,682 9,315 18,644 --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $20,064 $53,062 $3,417 $31,265 $15,627 $38,612 =========================================================================== SEE ACCOMPANYING NOTES.
83 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
PRUDENTIAL PUTNAM VT SMITH SP JENNISON PUTNAM VT INTERNATIONAL BARNEY PRUDENTIAL INTERNATIONAL GROWTH AND GROWTH AND PUTNAM VT HIGH JENNISON GROWTH INCOME INCOME VOYAGER II INCOME --------------------------------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $ 7,732 $ 2,720 $- $- $- $ 446 Increase (decrease) in net assets: Operations: Net investment income (loss) (407) (126) (1) (2) (1) 44 Net realized gain (loss) on investments and capital gains distributions (5,401) (3,123) (1) (4) - (32) Net unrealized appreciation (depreciation) of investments 2,985 418 13 16 46 (32) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (2,823) (2,831) 11 10 45 (20) Changes from principal transactions: Purchase payments 16,595 7,856 450 488 456 - Contract distributions and terminations (945) (448) - - (1) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 25,432 4,013 (6) 106 77 (31) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 41,082 11,421 444 594 532 (56) --------------------------------------------------------------------------- Total increase (decrease) 38,259 8,590 455 604 577 (76) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 45,991 11,310 455 604 577 370 Increase (decrease) in net assets: Operations: Net investment income (loss) (821) (297) - (29) (20) 77 Net realized gain (loss) on investments and capital gains distributions (12,816) (2,827) (30) (12) (8) (33) Net unrealized appreciation (depreciation) of investments (2,790) (897) (254) (412) (431) (62) --------------------------------------------------------------------------- Net increase (decrease) in net assets from operations (16,427) (4,021) (284) (453) (459) (18) Changes from principal transactions: Purchase payments 16,384 7,906 1,270 2,192 1,233 - Contract distributions and terminations (2,130) (550) (94) (25) (19) (17) Transfer payments from (to) other Divisions (including the fixed accounts), net (6,070) 696 315 663 313 (16) Additions to assets retained in the Account by Golden American Life Insurance Company - - - - - - --------------------------------------------------------------------------- Increase (decrease) in net assets derived from principal transactions 8,184 8,052 1,491 2,830 1,527 (33) --------------------------------------------------------------------------- Total increase (decrease) (8,243) 4,031 1,207 2,377 1,068 (51) --------------------------------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $37,748 $15,341 $1,662 $2,981 $1,645 $319 =========================================================================== SEE ACCOMPANYING NOTES.
84 Golden American Life Insurance Company Separate Account B Statements of Changes in Net Assets (continued) For the years ended December 31, 2002 and 2001 (DOLLARS IN THOUSANDS)
SMITH BARNEY SMITH SMITH INTERNATIONAL BARNEY BARNEY UBS ALL CAP LARGE CAP MONEY TACTICAL GROWTH VALUE MARKET ALLOCATION -------------------------------------------------- NET ASSETS AT JANUARY 1, 2001 $455 $ 692 $156 $- Increase (decrease) in net assets: Operations: Net investment income (loss) (5) (1) (12) (2) Net realized gain (loss) on investments and capital gains distributions 1 13 - (4) Net unrealized appreciation (depreciation) of investments (142) (79) - 46 -------------------------------------------------- Net increase (decrease) in net assets from operations (146) (67) (12) 40 Changes from principal transactions: Purchase payments - - - 718 Contract distributions and terminations (4) (15) (241) - Transfer payments from (to) other Divisions (including the fixed accounts), net (5) (47) 318 29 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (9) (62) 77 747 -------------------------------------------------- Total increase (decrease) (155) (129) 65 787 -------------------------------------------------- NET ASSETS AT DECEMBER 31, 2001 300 563 221 787 Increase (decrease) in net assets: Operations: Net investment income (loss) (1) 11 (8) (12) Net realized gain (loss) on investments and capital gains distributions (9) (24) - (15) Net unrealized appreciation (depreciation) of investments (67) (133) - (299) -------------------------------------------------- Net increase (decrease) in net assets from operations (77) (146) (8) (326) Changes from principal transactions: Purchase payments - - - 768 Contract distributions and terminations (3) (9) (174) (87) Transfer payments from (to) other Divisions (including the fixed accounts), net (19) (37) 104 406 Additions to assets retained in the Account by Golden American Life Insurance Company - - - - -------------------------------------------------- Increase (decrease) in net assets derived from principal transactions (22) (46) (70) 1,087 -------------------------------------------------- Total increase (decrease) (99) (192) (78) 761 -------------------------------------------------- NET ASSETS AT DECEMBER 31, 2002 $201 $371 $143 $1,548 ================================================== SEE ACCOMPANYING NOTES.
85 This page is intentionally left blank. 86 This page is intentionally left blank. 87 Golden American Life Insurance Company Separate Account B Notes To Financial Statements December 31, 2002 1. ORGANIZATION Golden American Life Insurance Company Separate Account B (the "Account") was established by Golden American Life Insurance Company ("Golden American" or the "Company") to support the operations of variable annuity contracts ("Contracts"). The Company is an indirect wholly owned subsidiary of ING Groep, N.V., a global financial services holding company based in The Netherlands. The Account is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. Golden American provides for variable accumulation and benefits under the Contracts by crediting annuity considerations to one or more divisions within the Account or the Golden American guaranteed interest division, the Golden American fixed interest division, and the fixed separate account, which are not part of the Account, as directed by the Contractowners. The portion of the Account's assets applicable to Contracts will not be charged with liabilities arising out of any other business Golden American may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of Golden American. The assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of Golden American. During 2002, the Account had GoldenSelect Contracts, Granite PrimElite Contracts, SmartDesign Contracts, and ING Rollover Choice Contracts. GoldenSelect Contracts sold by Golden American during 2002 included DVA Plus, Access, Premium Plus, ESII, Value, Access One, Landmark, and Generations Contracts. SmartDesign Contracts included Variable Annuity ("VA") and Advantage Contracts. The Account discontinued offering DVA 80 Contracts in May 1991 and discontinued registering DVA and DVA Series 100 Contracts for sale to the public as of May 1, 2000. 88 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) The Account also includes The Fund For Life Division, which is not included in the accompanying financial statements, and which ceased to accept new Contracts effective December 31, 1994. At December 31, 2002, the Account had 151 investment divisions (the "Divisions") 44 of which invest in independently managed mutual funds and 107 of which invest in mutual funds managed by affiliates, either Direct Services, Inc., ING Investments, LLC, or ING Life Insurance and Annuity Company. The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio" or "Fund") of various investment trusts (the "Trusts"). Investment Divisions at December 31, 2002 and related Trusts are as follows: The GCG Trust: The GCG Trust (continued): All Cap Series Global Franchise Series (S Class) ** All Cap Advisor Series ** Global Franchise Advisor Series ** Asset Allocation Growth Series Growth Series Capital Growth Series Growth Advisor Series ** Capital Growth Advisor Series ** Hard Assets Series Capital Guardian Small Cap Series Hard Assets Advisor Series ** Capital Guardian Small Cap Advisor Series ** International Enhanced EAFE Series (S Class) ** Core Bond Series International Enhanced EAFE Advisor Series ** Core Bond Advisor Series ** International Equity Series Developing World Series International Equity Advisor Series ** Developing World Advisor Series ** Internet Tollkeeper Series Diversified Mid-Cap Series Internet Tollkeeper Advisor Series ** Diversified Mid-Cap Advisor Series ** Investors Series Equity Growth Series (S Class) ** Investors Advisor Series ** Equity Growth Series Advisor Series ** J.P. Morgan Fleming Small Cap Equity Series (S Class) ** Equity Income Series J.P. Morgan Fleming Small Cap Equity Advisor Series ** Equity Income Advisor Series ** Janus Growth and Income Series Equity Opportunity Series Janus Growth and Income Advisor Series ** Equity Opportunity Series Advisor Series ** Large Cap Value Series Focus Value Series (S Class) ** Large Cap Value Advisor Series ** Focus Value Series Advisor Series ** Limited Maturity Bond Series Fully Managed Series Liquid Asset Series Fully Managed Advisor Series ** Liquid Asset Advisor Series ** Fundamental Growth Focus Series (S Class) ** Managed Global Series Fundamental Growth Advisor Series ** Managed Global Advisor Series **
89 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) The GCG Trust (continued): ING GET Fund: Mid-Cap Growth Series ING GET Fund - Series N * Mid-Cap Growth Advisor Series ** ING GET Fund - Series P * Real Estate Series ING GET Fund - Series Q ** Real Estate Advisor Series ** ING GET Fund - Series R ** Research Series ING GET Fund - Series S ** Research Advisor Series ** ING GET Fund - Series T ** Special Situations Series ING GET Fund - Series U ** Special Situations Advisor Series ** ING Partners, Inc.: Strategic Equity Series ING Alger Growth Portfolio (Service Class) ** Strategic Equity Advisor Series ** ING American Century Small Cap Value Portfolio (Service Class) ** Total Return Series ING J.P. Morgan Mid Cap Value Portfolio (Service Class) ** Total Return Advisor Series ** ING MFS(R)Capital Opportunities Portfolio (Initial Class) * Value Equity Series ING MFS(R)Capital Opportunities Portfolio (Service Class) ** Value Equity Advisor Series ** ING MFS(R)Global Growth Portfolio (Service Class) ** Van Kampen Growth and Income Series ING OpCap Balanced Value Portfolio (Service Class) ** Van Kampen Growth & Income Advisor Series ** ING PIMCO Total Return Portfolio (Service Class) ** AIM Variable Insurance Funds: ING Salomon Bros. Capital Portfolio (Service Class) ** AIM V.I. Dent Demographic Trends Fund (Class II Shares) * ING Salomon Bros. Investors Value Portfolio (Service Class) ** AIM V.I. Growth Fund (Series II) * ING Scudder International Growth Portfolio (Service Class) ** AIM V.I. Capital Appreciation Fund (Series II) ** ING T. Rowe Price Growth Equity Portfolio (Service Class) ** AIM V.I. Core Equity Fund (Series II) ** ING UBS Tactical Asset Allocation Portfolio (Service Class) ** AIM V.I. Premier Equity Fund (Series II) ** ING Van Kampen Comstock Portfolio (Service Class) ** Alliance Variable Products Series Fund, Inc.: ING Variable Insurance Trust: Alliance Bernstein Value Portfolio (Class B) * ING VP Worldwide Growth Portfolio (Service Shares) Alliance Growth and Income Portfolio (Class B) * ING VP Bond Portfolio: Alliance Premier Growth Portfolio (Class B) * ING VP Bond Portfolio (Class S Shares) ** Fidelity(R)Variable Insurance Products Fund: ING Variable Portfolios, Inc.: Fidelity(R) VIP Growth Portfolio (Service Class 2) * ING VP Growth Portfolio (S Class) ** Fidelity(R) VIP Equity-Income Portfolio (Service Class 2) * ING VP Index Plus LargeCap Portfolio (Class S) * Fidelity(R) VIP Contrafund(R)Portfolio (Service Class 2) * ING VP Index Plus MidCap Portfolio (Class S) * Fidelity(R) VIP Overseas Portfolio (Service Class 2) ** ING VP Index Plus SmallCap Portfolio (Class S) * Franklin Templeton Variable Insurance Products Trust: ING VP Small Company Portfolio (Class S) ** Franklin Small Cap Value Securities Fund (Class 2) ** ING VP Value Opportunity Portfolio (Class S) * Greenwich Street Series Fund: ING Variable Products Trust: Greenwich Appreciation Portfolio ING VP Convertible Portfolio (Class S) * The Galaxy VIP Fund: ING VP Growth Opportunities Portfolio (Service Shares) * Galaxy VIP Asset Allocation Fund ING VP International Value Portfolio (Class S) ** Galaxy VIP Equity Fund ING VP Large Company Value Portfolio (Class S) * Galaxy VIP Growth and Income Fund ING VP LargeCap Growth Portfolio (Class S) * Galaxy VIP High Quality Bond Fund ING VP MagnaCap Portfolio (Service Shares) * Galaxy VIP Small Company Growth Fund ING VP MidCap Opportunities Portfolio (Class S) **
90 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) ING Variable Products Trust (continued): ProFunds VP: ING VP SmallCap Opportunities Portfolio (Service Shares) * ProFund VP Bull * INVESCO Variable Investment Funds, Inc.: ProFund VP Europe 30 * INVESCO VIF - Financial Services Fund * ProFund VP Small-Cap * INVESCO VIF - Health Sciences Fund * Prudential Series Fund, Inc.: INVESCO VIF - Leisure Fund ** Prudential Jennison Portfolio (Class II Shares) INVESCO VIF - Utilities Fund* Prudential SP Jennison International Growth Janus Aspen Series: Portfolio (Class II Shares) Janus Aspen Series Balanced Portfolio (Service Class) ** Putnam Variable Trust: Janus Aspen Series Flexible Income Portfolio (Service Class) ** Putnam VT Growth and Income (Class IB) * Janus Aspen Series Growth Portfolio (Service Class) ** Putnam VT International Growth and Income (Class IB) * Janus Aspen Series Worldwide Growth Portfolio (Service Class) * Putnam VT Voyager Fund II (Class IB) * Oppenheimer Variable Accounts Fund: Travelers Series Fund Inc.: Oppenheimer Global Securities Fund/VA (Service Class) ** Smith Barney High Income Portfolio Oppenheimer Strategic Bond Fund/VA (Service Class) ** Smith Barney International All Cap Growth Portfolio PIMCO Variable Insurance Trust: Smith Barney Large Cap Value Portfolio PIMCO High Yield Portfolio Smith Barney Money Market Portfolio PIMCO StocksPLUS Growth and Income Portfolio UBS Series Trust: Pioneer Variable Contracts Trust: UBS Tactical Allocation Portfolio (Class I) * Pioneer Equity-Income VCT Portfolio (Class II) ** Pioneer Fund VCT Portfolio (Class II Shares) * Pioneer Mid-Cap Value VCT Portfolio (Class II Shares) * Pioneer Small Company VCT Portfolio (Class II) * * Division was new in 2001. ** Division was new in 2002.
The GCG Trust Market Manager Division was open for investment for only a brief period during 1994 and 1995. This Division is now closed and Contractowners are not permitted to direct their investments into this Division. On March 6, 2001, all remaining proceeds in the Market Manager Division were liquidated and Contractowner holdings were reallocated to the Liquid Asset Division as described in the Contract prospectus. On April 27, 2001, following approval by it shareholders, all remaining proceeds in the GCG Trust Emerging Markets Division were liquidated and Contractowner holdings were reallocated to the GCG Trust Developing World Division as described in the Contract prospectus. 91 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 1. ORGANIZATION (CONTINUED) On December 14, 2001, the consolidation of the Warburg Pincus International Equity Portfolio into the GCG Trust International Equity Series took place at no cost to Contractowners. Shares of GCG Trust International Equity Series were substituted for shares of Warburg Pincus International Equity Portfolio. The names of certain Divisions were changed during 2002. The following is a summary of current and former names for those Divisions: CURRENT NAME FORMER NAME - -------------------------------------------------------------------------------- ING MFS(R)Capital Opportunities PPI MFS Capital Opportunities ING VP Worldwide Growth Pilgrim Worldwide Growth ING VP Index Plus LargeCap Aetna Index Plus LargeCap ING VP Index Plus MidCap Aetna Index Plus MidCap ING VP Index Plus SmallCap Aetna Index Plus SmallCap ING VP Value Opportunity Aetna Value Opportunity ING VP Convertible Pilgrim Convertible ING VP Growth Opportunities Pilgrim Growth Opportunities ING VP Large Company Value Pilgrim Growth and Income ING VP LargeCap Growth Pilgrim LargeCap Growth ING VP MagnaCap Pilgrim MagnaCap ING VP SmallCap Opportunities Pilgrim SmallCap Opportunities 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies of the Account: USE OF ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 92 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) INVESTMENTS Investments are made in shares of a Series or Portfolio of the Trusts and are recorded at fair value, determined by the net asset value per share of the respective Series or Portfolio of the Trusts. Investment transactions in each Series or Portfolio of the Trusts are recorded on the trade date. Distributions of net investment income and capital gains from each Series or Portfolio of the Trusts are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Series or Portfolio of the Trusts are determined on the specific identification basis. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments. FEDERAL INCOME TAXES Operations of the Account form a part of, and are taxed with, the total operations of Golden American, which is taxed as a life insurance company under the Internal Revenue Code. Earnings and realized capital gains of the Account attributable to the Contractowners are excluded in the determination of the federal income tax liability of Golden American. TRANSFERS Transfers between the Account and Golden American relate to gains and losses resulting from actual mortality experience, the full responsibility for which is assumed by Golden American, Contractowner transfers between the general account and the Divisions, and other Contractowner activity including contract deposits and withdrawals. Unsettled transactions as of the reporting date appear on a net basis in the line Payable to Golden American Life Insurance Company on the Statement of Assets and Liabilities. 93 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES Prior to February 1, 2000, DVA Plus, Access, and Premium Plus Contracts each had three different death benefit options referred to as Standard, Annual Ratchet, and 7% Solution; however, in the state of Washington, the 5.5% Solution is offered instead of the 7% Solution. After February 1, 2000, DVA Plus, Access and Premium Plus each had four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. Granite PrimElite has two death benefit options referred to as Standard and Annual Ratchet. Golden American discontinued external sales of DVA 80 in May 1991. Golden American has also discontinued external sales of DVA 100, DVA Series 100, and Granite PremElite. Under the terms of all Contracts, certain charges are allocated to the Contracts to cover Golden American's expenses in connection with the issuance and administration of the Contracts. Following is a summary of these charges: MORTALITY AND EXPENSE RISK CHARGES Golden American assumes mortality and expense risks related to the operations of the Account and, in accordance with the terms of the Contracts, deducts a daily charge from the assets of the Account. Daily charges deducted at annual rates to cover these risks follows: SERIES ANNUAL RATES ----------------- DVA 80 0.80% DVA 0.90 DVA Series 100 1.25 DVA Plus (pre February 2000) - Standard 1.10 DVA Plus (post January 2000) - Standard 1.15 DVA Plus (post 2000) - Standard 1.15 DVA Plus (pre February 2000) - Annual Ratchet 1.25 DVA Plus (pre February 2000) - 5.5% Solution 1.25 DVA Plus (post January 2000) - 5.5% Solution 1.25 DVA Plus (post 2000) - 5.5% Solution 1.30 DVA Plus (post January 2000) - Annual Ratchet 1.30 DVA Plus (pre February 2000) - 7% Solution 1.40 94 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES ----------------- DVA Plus (post January 2000) - Max 5.5 1.40% DVA Plus (post 2000) - Annual Ratchet 1.40 DVA Plus (post 2000) - Max 5.5 1.45 DVA Plus (post January 2000) - 7% Solution 1.50 DVA Plus (post 2000) - 7% Solution 1.50 DVA Plus (post January 2000) - Max 7 1.60 DVA Plus (post 2000) - Max 7 1.60 Access (pre February 2000) - Standard 1.25 Access (post January 2000) - Standard 1.30 Access (post 2000) - Standard 1.30 Access (pre February 2000) - Annual Ratchet 1.40 Access (pre February 2000) - 5.5% Solution 1.40 Access (post January 2000) - Annual Ratchet 1.45 Access (post January 2000) - 5.5% Solution 1.45 Access (post 2000) - 5.5% Solution 1.45 Access (pre February 2000) - 7% Solution 1.55 Access (post January 2000) - Max 5.5 1.55 Access (post 2000) - Annual Ratchet 1.55 Access (post 2000) - Max 5.5 1.60 Access (post January 2000) - 7% Solution 1.65 Access (post 2000) - 7% Solution 1.65 Access (post April 2001) - Standard 1.65 Access (post January 2000) - Max 7 1.75 Access (post 2000) - Max 7 1.75 Access (post April 2001) - 5.5% Solution 1.80 Access (post April 2001) - Annual Ratchet 1.90 Access (post April 2001) - Max 5.5 1.95 Access (post April 2001) - 7% Solution 2.00 Access (post April 2001) - Max 7 2.10 Premium Plus (pre February 2000) - Standard 1.25 Premium Plus (post January 2000) - Standard 1.30 95 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES --------------- Premium Plus (post 2000) - Standard 1.30% Premium Plus (pre February 2000) - Annual Ratchet 1.40 Premium Plus (pre February 2000) - 5.5% Solution 1.40 Premium Plus (post January 2000) - Annual Ratchet 1.45 Premium Plus (post January 2000) - 5.5% Solution 1.45 Premium Plus (post 2000) - 5.5% Solution 1.45 Premium Plus (pre February 2000) - 7% Solution 1.55 Premium Plus (post January 2000) - Max 5.5 1.55 Premium Plus (post 2000) - Annual Ratchet 1.55 Premium Plus (post 2000) - Max 5.5 1.60 Premium Plus (post January 2000) - 7% Solution 1.65 Premium Plus (post 2000) - 7% Solution 1.65 Premium Plus (post January 2000) - Max 7 1.75 Premium Plus (post 2000) - Max 7 1.75 ES II (pre 2001) 1.25 ES II (post 2000) - Standard 1.25 ES II (post 2000) - Deferred Ratchet 1.30 ES II (post 2000) - 5.5% Solution 1.40 ES II (post 2000) - Annual Ratchet 1.50 ES II (post 2000) - Max 5.5 1.55 ES II (post 2000) - 7% Solution 1.60 ES II (post 2000) - Max 7 1.70 Value - Standard 0.75 Access One 0.35 Granite PrimElite - Standard 1.10 Granite PrimElite - Annual Ratchet 1.25 Generations - Standard 1.25 Generations - Deferred Ratchet 1.30 Generations - Annual Ratchet 1.50 Generations - 7% Solution 1.60 Generations - Max 7 1.70 Landmark - Standard 1.50 96 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) MORTALITY AND EXPENSE RISK CHARGES (CONTINUED) SERIES ANNUAL RATES ----------------- Landmark - 5.5% Solution 1.65% Landmark - Annual Ratchet 1.75 Landmark - Max 5.5 1.80 Landmark - 7% Solution 1.85 Landmark - Max 7 1.95 VA Option I 0.80 VA Option II 1.10 VA Option III 1.25 VA Bonus Option I 1.30 VA Bonus Option II 1.60 VA Bonus Option III 1.75 Advantage Option I 2.05 Advantage Option II 2.25 Advantage Option III 2.30 Rollover Choice Option I 0.60 Rollover Choice Option II 0.80 Rollover Choice Option III 0.95 ASSET BASED ADMINISTRATIVE CHARGES A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA and DVA Series 100 Contracts. A daily charge at an annual rate of 0.15% is deducted from the assets attributable to the DVA Plus, Access, Premium Plus, ESII, Value, Access One, Granite PrimElite, Generations, Landmark, VA, Advantage, and Rollover Choice Contracts. 97 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) ADMINISTRATIVE CHARGES An administrative charge is deducted from the accumulation value of deferred annuity Contracts to cover ongoing administrative expenses. The charge is $30 per Contract year for ES II, Value, VA, Advantage, and Rollover Choice Contracts. For DVA Series 100 and Access One Contracts there is no charge. For all other Contracts the charge is $40. The charge is incurred at the beginning of the Contract processing period and deducted at the end of the Contract processing period. This charge had been waived for certain offerings of the Contracts. For certain Contracts, a minimum death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death benefit per Contract year is deducted from the accumulation value of each Contract on its anniversary date. CONTINGENT DEFERRED SALES CHARGES Under DVA 80, DVA, DVA Plus, Premium Plus, ES II, Value, Granite PrimElite, Landmark, VA, Advantage, and Rollover Choice Contracts, a contingent deferred sales charge ("Surrender Charge") is imposed as a percentage of each premium payment if the Contract is surrendered or an excess partial withdrawal is taken. The following table reflects the Surrender Charge that is assessed based upon the date a premium payment is received.
COMPLETE YEARS GRANITE ELAPSED SINCE DVA PRIMELITE PREMIUM PAYMENT 80 & PREMIUM ES II & ROLLOVER & DVA DVA PLUS PLUS GENERATIONS VALUE ADVANTAGE LANDMARK VA CHOICE - -------------------- -------- ------------ ---------- ------------- -------- ------------ ------------ ------ ---------- 0 6% 7% 8% 8% 6% 6% 6% 7% 6% 1 5 7 8 7 6 5 5 7 6 2 4 6 8 6 6 4 4 6 5 3 3 5 8 5 5 - 3 6 4 4 2 4 7 4 4 - - 5 3 5 1 3 6 3 3 - - 4 2 6 - 1 5 2 1 - - 3 1 7 - - 3 1 - - - - - 8 - - 1 - - - - - - 9+ - - - - - - - - - - -------------------- -------- ------------ ---------- ------------- -------- ------------ ------------ ------ ----------
98 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) OTHER CONTRACT CHARGES Under DVA 80, DVA, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contractowners taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA Contracts, annual distribution fees are deducted from the Contracts' accumulation values. DEFERRED SALES LOAD Under Contracts offered prior to October 1995, a sales load of up to 7.5% was assessed against each premium payment for sales-related expenses as specified in the Contracts. For DVA Series 100, the sales load is deducted in equal annual installments over the period the Contract is in force, not to exceed 10 years. For DVA 80 and DVA Contracts, although the sales load is chargeable to each premium when it is received by Golden American, the amount of such charge is initially advanced by Golden American to Contractowners and included in the accumulation value and then deducted in equal installments on each Contract anniversary date over a period of six years. Upon surrender of the Contract, the unamortized deferred sales load is deducted from the accumulation value. In addition, when partial withdrawal limits are exceeded, a portion of the unamortized deferred sales load is deducted. PREMIUM TAXES For certain Contracts, premium taxes are deducted, where applicable, from the accumulation value of each Contract. The amount and timing of the deduction depends on the Contractowner's state of residence and currently ranges up to 3.5% of premiums. 99 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 3. CHARGES AND FEES (CONTINUED) FEES WAIVED BY GOLDEN AMERICAN Certain charges and fees for various types of Contracts are currently waived by Golden American. Golden American reserves the right to discontinue these waivers at its discretion or to conform with changes in the law. NET ASSETS RETAINED IN THE ACCOUNT BY GOLDEN AMERICAN LIFE INSURANCE COMPANY A summary of the net assets retained in the Account, representing the unamortized deferred sales load and premium taxes advanced by Golden American previously noted, follows: YEAR ENDED ----------------------------- 2002 2001 --------------- ------------- (DOLLARS IN THOUSANDS) Balance at beginning of year $ 135 $ 813 Sales load advanced 9 46 Amortization of deferred sales load and premium tax (144) (724) --------------- ------------- Balance at end of year $ - $ 135 =============== ============= 4. RELATED PARTY TRANSACTIONS During the year ended December 31, 2002, management and service fees were paid indirectly to Directed Services, Inc., an affiliate of the Company, in its capacity as investment manager to the GCG Trust. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.53% to 1.85% of the average net assets of each respective Series. In addition, management and service fees were paid to ING Investments, LLC, in its capacity as investment adviser to the ING GET Fund, the ING Variable Insurance Trust, ING VP Bond Portfolio, ING Variable Portfolios, Inc., and the ING Variable Products Trust. The Trusts' advisory agreement provided for fees at annual rates ranging from 0.35% to 1.00% of the average net assets of each respective Portfolio. Management and service fees were paid to ING Life Insurance and Annuity Company, an affiliate of the Company, in its capacity as investment adviser to ING Partners, Inc. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.50% to 1.00% of the average net assets of each respective Portfolio. 100 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales of investments follows:
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust: All Cap $99,898 $62,269 $215,529 $18,161 All Cap Advisor 177 - - - Asset Allocation Growth 18,227 10,179 46,049 798 Capital Growth 271,861 306,181 150,331 150,151 Capital Growth Advisor 154 - - - Capital Guardian Small Cap 830,463 842,708 474,975 410,116 Capital Guardian Small Cap Advisor 320 - - - Core Bond 332,380 34,599 96,443 23,096 Core Bond Advisor 995 - - - Developing World 256,419 261,252 514,464 492,886 Developing World Advisor 81 - - - Diversified Mid-Cap 58,638 6,680 51,740 5,350 Diversified Mid-Cap Advisor 224 - - - Emerging Markets - - 49,902 69,646 Equity Growth 5,244 623 - - Equity Growth Advisor 480 - - - Equity Income 166,618 101,344 216,341 81,506 Equity Income Advisor 673 13 - - Equity Opportunity 147,404 177,811 142,512 114,142 Equity Opportunity Advisor 34 - - - Focus Value 6,954 731 - - Focus Value Advisor 50 - - - Fully Managed 383,713 62,233 377,005 90,177 Fully Managed Advisor 946 34 - - Fundamental Growth Focus 3,288 415 - - Fundamental Growth Advisor 113 - - - Global Franchise 19,859 4,824 - - Global Franchise Advisor 744 42 - - Growth 922,370 1,085,634 838,003 854,786 Growth Advisor 97 - - - Hard Assets 102,835 64,011 15,759 19,014 Hard Assets Advisor 95 - - - International Enhanced EAFE 18,536 13,290 - - International Enhanced EAFE Advisor 166 - - - International Equity 684,796 688,451 1,288,757 1,304,170
101 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED) Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) The GCG Trust (continued): International Equity Advisor $ 254 $- $ - $ - Internet Tollkeeper 16,754 6,112 5,934 392 Internet Tollkeeper Advisor 57 - - - Investors 37,278 9,900 79,313 6,102 Investors Advisor 297 - - - J.P. Morgan Fleming Small Cap Equity 10,549 557 - - J.P. Morgan Fleming Small Cap Advisor 520 - - - Janus Growth and Income 77,366 13,632 85,909 2,016 Janus Growth and Income Advisor 602 - - - Large Cap Value 137,118 37,870 192,419 13,495 Large Cap Value Advisor 347 - - - Limited Maturity Bond 289,313 109,521 320,388 165,480 Liquid Asset 6,067,854 6,116,068 5,778,907 5,387,088 Liquid Asset Advisor 3,353 1,553 - - Managed Global Series 439,191 413,705 994,534 946,349 Managed Global Advisor 51 - - - Market Manager - - 3,388 8,410 Mid-Cap Growth 672,311 703,631 813,977 747,789 Mid-Cap Growth Advisor 558 - - - Real Estate 137,466 62,909 71,207 46,270 Real Estate Advisor 278 - - - Research 171,313 231,552 208,240 178,793 Research Advisor 329 - - - Special Situations 11,468 6,198 21,339 1,778 Special Situations Advisor 56 - - - Strategic Equity 403,752 448,147 199,079 223,594 Strategic Equity Advisor 79 - - - Total Return 268,590 141,319 303,584 73,267 Total Return Advisor 1,034 51 - - Value Equity 102,513 90,027 109,345 74,755 Value Equity Advisor 110 - - - Van Kampen Growth and Income 60,273 127,038 60,251 72,471 Van Kampen Growth and Income Advisor 1,031 31 - - AIM Variable Insurance Funds: AIM V.I. Dent Demographic Trends 16,368 5,241 3,649 90 AIM V.I. Growth 987 372 427 2 AIM V.I. Capital Appreciation 34 - - - AIM V.I. Core Equity 44 - - - AIM V.I. Premier Equity 87 - - -
102 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) Alliance Variable Products Series Fund, Inc.: Alliance Bernstein Value $ 2,631 $ 257 $ 648 $ 66 Alliance Growth and Income 4,785 619 1,659 44 Alliance Premier Growth 3,175 1,593 1,115 79 Fidelity(R)Variable Insurance Products Fund: Fidelity(R)VIP Growth 48,243 23,758 705 44 Fidelity(R)VIP Equity-Income 62,498 39,048 1,945 55 Fidelity(R)VIP Contrafund(R) 4,406 783 1,568 436 Fidelity(R)VIP Overseas 9 - - - Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 20 - - - Greenwich Street Series Fund: Greenwich Appreciation 81 74 54 116 The Galaxy VIP Fund: Galaxy VIP Asset Allocation 33 431 214 191 Galaxy VIP Equity 22 132 130 187 Galaxy VIP Growth and Income - 32 59 119 Galaxy VIP High Quality Bond 32 58 90 18 Galaxy VIP Small Company Growth 13 11 19 6 ING GET Fund: ING GET Fund - Series N 733 2,401 33,144 3,009 ING GET Fund - Series P 6,579 18,769 152,998 246 ING GET Fund - Series Q 182,185 15,241 1,904 - ING GET Fund - Series R 184,803 15,647 - - ING GET Fund - Series S 227,944 9,645 - - ING GET Fund - Series T 237,424 1,768 - - ING GET Fund - Series U 1,047 - - - ING Partners, Inc.: ING Alger Growth 43 - - - ING American Century Small Cap Value 2 - - - ING J.P. Morgan Mid Cap Value 357 60 - - ING MFS(R)Capital Opportunities 1,163 193 661 9 ING MFS(R)Capital Opportunities 85 - - - ING MFS(R)Global Growth 76 1 - - ING OpCap Balanced Value 131 - - - ING PIMCO Total Return 627 29 - - ING Salomon Bros. Capital 9 - - -
103 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) ING Partners, Inc. (continued): ING Salomon Bros. Investors Value $ 4 $ - $- $ - ING Scudder International Growth 8 - - - ING T. Rowe Price Growth Equity 162 - - - ING UBS Tactical Asset Allocation 2 - - - ING Van Kampen Comstock 1,785 55 - - ING Variable Insurance Trust: ING VP Worldwide Growth 24,169 9,196 24,855 8,371 ING VP Bond Portfolio: ING VP Bond 63,496 13,839 - - ING Variable Portfolios, Inc.: ING VP Growth 51 1 - - ING VP Index Plus LargeCap 7,078 2,691 896 101 ING VP Index Plus MidCap 9,240 3,466 852 62 ING VP Index Plus SmallCap 8,715 4,883 854 227 ING VP Small Company 251 37 - - ING VP Value Opportunity 1,251 169 314 15 ING Variable Products Trust: ING VP Convertible 1,096 187 195 3 ING VP Growth Opportunities 10,173 2,384 7,080 1,675 ING VP International Value 53 1 - - ING VP Large Company Value 1,376 372 442 291 ING VP LargeCap Growth 1,869 1,053 538 8 ING VP MagnaCap 13,443 3,846 5,521 131 ING VP MidCap Opportunities 16 - - - ING VP SmallCap Opportunities 31,124 1,969 20,495 5,437 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 63,673 40,543 3,684 1,338 INVESCO VIF - Health Sciences 83,757 58,204 13,606 2,751 INVESCO VIF - Leisure 7,516 1,277 - - INVESCO VIF - Utilities 8,167 944 1,085 117 Janus Aspen Series: Janus Aspen Series Balanced 565 37 - - Janus Aspen Series Flexible Income 276 3 - - Janus Aspen Series Growth 225 1 - - Janus Aspen Series Worldwide Growth 104,529 101,442 1,300 62
104 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 5. PURCHASES AND SALES OF INVESTMENT SECURITIES (CONTINUED)
YEAR ENDED DECEMBER 31 2002 2001 -------------------------------------------------------------- PURCHASES SALES PURCHASES SALES -------------------------------------------------------------- (DOLLARS IN THOUSANDS) Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities $ 274 $24 $ - $ - Oppenheimer Strategic Bond 53 36 - - PIMCO Variable Insurance Trust: PIMCO High Yield 217,839 126,620 187,456 101,450 PIMCO StocksPLUS Growth and Income 92,182 97,761 78,983 54,922 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 200 1 - - Pioneer Fund VCT 27,454 6,810 2,403 151 Pioneer Mid-Cap Value VCT 69,537 13,624 5,058 16 Pioneer Small Company VCT 3,491 398 978 82 ProFunds VP: ProFund VP Bull 114,057 95,299 41,559 20,550 ProFund VP Europe 30 318,634 307,100 179,473 169,046 ProFund VP Small-Cap 321,292 294,784 202,340 180,975 Prudential Series Fund, Inc.: Prudential Jennison 223,318 215,947 161,864 120,999 Prudential SP Jennison International Growth 44,081 36,323 72,009 60,714 Putnam Variable Trust: Putnam VT Growth and Income 1,662 172 456 13 Putnam VT International Growth and Income 3,063 261 625 33 Putnam VT Voyager II 1,601 94 539 8 Travelers Series Fund Inc.: Smith Barney High Income 82 38 51 62 Smith Barney International All Cap Growth 4 26 4 19 Smith Barney Large Cap Value 19 54 30 71 Smith Barney Money Market 2 80 194 129 UBS Series Trust: UBS Tactical Allocation 1,316 240 794 49
105 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS The changes in units outstanding for the years ended December 31, 2002 and 2001 are shown in the following table. The activity includes Contractowners electing to update a DVA 100 or DVA Series 100 Contract to a DVA PLUS Contract. Updates to DVA PLUS Contracts resulted in both a redemption (surrender of the old Contract) and an issue (acquisition of the new Contract). All of the units issued for the GCG Trust Market Manager Division resulted from such updates.
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- The GCG Trust: All Cap 14,295,321 10,877,332 3,417,989 20,782,291 4,029,958 16,752,333 All Cap Advisor 18,492 - 18,492 - - - Asset Allocation Growth 2,524,223 1,691,382 832,841 5,576,656 359,275 5,217,381 Capital Growth 12,673,641 14,350,360 (1,676,719) 9,170,101 7,646,399 1,523,702 Capital Growth Advisor 3,459 - 3,459 - - - Capital Guardian Small Cap 31,167,383 33,693,558 (2,526,175) 12,516,724 12,352,679 164,045 Capital Guardian Small Cap Advisor 14,125 - 14,125 - - - Core Bond 58,286,404 59,112,337 (825,933) 32,782,567 28,723,840 4,058,727 Core Bond Advisor 32,995 27 32,968 - - - Developing World 31,632,928 7,268,250 24,364,678 9,464,453 3,028,846 6,435,607 Developing World Advisor 96,894 124 96,770 - - - Diversified Mid-Cap 38,357,135 38,795,832 (438,697) 77,143,940 74,214,198 2,929,742 Diversified Mid-Cap Advisor 8,162 3 8,159 - - - Emerging Markets 8,678,192 2,364,577 6,313,615 6,501,025 1,269,887 5,231,138 Equity Growth 23,763 590 23,173 - - - Equity Growth Advisor - - - 7,053,917 9,615,850 (2,561,933) Equity Income 715,898 157,257 558,641 - - - Equity Income Advisor 47,562 - 47,562 - - - Equity Opportunity 10,707,624 7,860,701 2,846,923 11,244,435 5,753,173 5,491,262 Equity Opportunity Advisor 68,680 3,462 65,218 - - - Focus Value 927,802 217,748 710,054 - - - Focus Value Advisor 4,735 - 4,735 - - - Fully Managed 16,893,498 5,743,297 11,150,201 15,753,519 5,774,203 9,979,316 Fully Managed Advisor 92,813 3,431 89,382 - - - Fundamental Growth Focus 412,537 67,974 344,563 - - - Fundamental Growth Advisor 11,445 7 11,438 - - - Global Franchise 2,512,607 851,207 1,661,400 - - - Global Franchise Advisor 78,879 4,514 74,365 - - - Growth 88,418,811 101,385,523 (12,966,712) 56,738,599 57,342,210 (603,611) Growth Advisor 9,416 - 9,416 - - - Hard Assets 8,767,576 6,176,025 2,591,551 1,479,521 1,669,257 (189,736) Hard Assets Advisor 9,841 - 9,841 - - - International Enhanced EAFE 2,304,452 1,696,647 607,805 - - -
106 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- The GCG Trust (continued): International Enhanced EAFE Advisor 16,921 29 16,892 - - - International Equity 88,470,226 88,235,675 234,551 140,797,564 141,233,941 (436,377) International Equity Advisor 25,956 3 25,953 - - - Internet Tollkeeper 3,969,315 1,909,841 2,059,474 867,730 158,666 709,064 Internet Tollkeeper Advisor 5,119 - 5,119 - - - Investors 5,380,431 2,510,400 2,870,031 8,174,409 1,445,937 6,728,472 Investors Advisor 30,514 17 30,497 - - - J.P. Morgan Fleming Small Cap Equity 1,450,310 238,479 1,211,831 - - - J.P. Morgan Fleming Small Cap Advisor 53,904 3 53,901 - - - Janus Growth and Income 11,879,305 3,750,330 8,128,975 10,214,159 1,007,740 9,206,419 Janus Growth and Income Advisor 60,374 - 60,374 - - - Large Cap Value 22,131,127 10,157,539 11,973,588 21,298,417 3,032,221 18,266,196 Large Cap Value Advisor 32,499 - 32,499 - - - Limited Maturity Bond 19,089,421 10,093,155 8,996,266 21,094,466 13,022,965 8,071,501 Liquid Asset 432,718,159 435,462,419 (2,744,260) 406,837,337 381,974,408 24,862,929 Liquid Asset Advisor 376,779 196,446 180,333 - - - Managed Global 29,219,248 27,211,114 2,008,134 57,913,358 54,827,286 3,086,072 Managed Global Advisor 4,848 - 4,848 - - - Market Manager - - - - 238,516 (238,516) Mid-Cap Growth 37,536,301 39,509,334 (1,973,033) 26,837,412 24,939,789 1,897,623 Mid-Cap Growth Advisor 56,277 2 56,275 - - - Real Estate 6,070,387 3,723,970 2,346,417 3,276,661 2,545,459 731,202 Real Estate Advisor 28,719 3 28,716 - - - Research 14,355,356 17,693,135 (3,337,779) 11,109,168 10,124,605 984,563 Research Advisor 33,623 - 33,623 - - - Special Situations 2,057,335 1,380,067 677,268 3,020,279 751,676 2,268,603 Special Situations Advisor 5,773 - 5,773 - - - Strategic Equity 39,062,471 42,593,565 (3,531,094) 18,048,284 19,375,073 (1,326,789) Strategic Equity Advisor 8,044 - 8,044 - - - Total Return 17,689,754 11,652,054 6,037,700 16,341,446 6,826,503 9,514,943 Total Return Advisor 100,210 5,006 95,204 - - - Value Equity 8,835,743 8,086,769 748,974 7,284,108 5,650,995 1,633,113 Value Equity Advisor 12,051 923 11,128 - - - Van Kampen Growth and Income 5,686,825 8,964,808 (3,277,983) 5,403,189 5,969,298 (566,109) Van Kampen Growth and Income Advisor 105,373 4,220 101,153 - - - AIM Variable Insurance Funds: AIM V.I. Dent Demographic Trends 2,175,335 948,298 1,227,037 339,548 16,457 323,091 AIM V.I. Growth 129,633 51,493 78,140 42,954 57 42,897 AIM V.I. Capital Appreciation 3,701 - 3,701 - - - AIM V.I. Core Equity 4,961 - 4,961 - - - AIM V.I. Premier Equity 11,714 - 11,714 - - - Alliance Variable Products Series Fund, Inc. Alliance Bernstein Value 298,200 42,183 256,017 71,653 12,180 59,473 Alliance Growth and Income 585,752 114,322 471,430 181,005 8,620 172,385 Alliance Premier Growth 467,717 260,296 207,421 123,347 9,253 114,094
107 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- Fidelity(R)Variable Insurance Products Fund: Fidelity(R)VIP Growth 8,076,321 4,495,778 3,580,543 80,283 5,508 74,775 Fidelity(R)VIP Equity-Income 8,251,501 5,400,874 2,850,627 214,691 11,435 203,256 Fidelity(R)VIP Contrafund(R) 540,071 148,494 391,577 171,166 49,255 121,911 Fidelity(R)VIP Overseas 1,171 - 1,171 Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 1,965 25 1,940 - - - Greenwich Street Series Fund: Greenwich Appreciation 4,624 4,584 40 2,637 6,303 (3,666) The Galaxy VIP Fund: Galaxy VIP Asset Allocation 1,789 52,447 (50,658) 19,007 19,492 (485) Galaxy VIP Equity 2,539 15,793 (13,254) 11,685 17,902 (6,217) Galaxy VIP Growth and Income 561 3,752 (3,191) 5,606 12,104 (6,498) Galaxy VIP High Quality Bond 2,096 4,759 (2,663) 7,406 1,490 5,916 Galaxy VIP Small Company Growth 1,172 1,052 120 1,341 329 1,012 ING GET Fund: ING GET Fund - Series N 43,042 189,804 (146,762) 3,305,373 296,325 3,009,048 ING GET Fund - Series P 772,618 1,720,085 (947,467) 15,403,642 127,730 15,275,912 ING GET Fund - Series Q 18,122,750 1,458,265 16,664,485 190,471 - 190,471 ING GET Fund - Series R 18,803,947 1,893,348 16,910,599 - - - ING GET Fund - Series S 22,953,264 1,085,776 21,867,488 - - - ING GET Fund - Series T 23,875,059 232,370 23,642,689 - - - ING GET Fund - Series U 104,774 - 104,774 - - - ING Partners, Inc.: ING Alger Growth 5,956 - 5,956 - - - ING American Century Small Cap Value 215 - 215 - - - ING J.P. Morgan Mid Cap Value 950 31 919 - - - ING MFS(R)Capital Opportunities (Initial Class) 39,538 6,696 32,842 - - - ING MFS(R)Capital Opportunities (Service Class) 169,917 39,170 130,747 79,584 1,274 78,310 ING MFS(R)Global Growth 10,569 - 10,569 - - - ING OpCap Balanced Value 9,184 144 9,040 - - - ING PIMCO Total Return 16,208 - 16,208 - - - ING Salomon Bros. Capital 57,930 2,748 55,182 - - - ING Salomon Bros. Investors Value 487 - 487 - - - ING Scudder International Growth 1,232 - 1,232 - - - ING T. Rowe Price Growth Equity 19,085 - 19,085 - - - ING UBS Tactical Asset Allocation 297 - 297 - - - ING Van Kampen Comstock 218,552 8,852 209,700 - - - ING Variable Insurance Trust: ING VP Worldwide Growth 4,884,109 2,447,811 2,436,298 3,791,068 1,563,623 2,227,445 ING VP Bond Portfolio: ING VP Bond 7,230,384 2,562,132 4,668,252 - - - ING Variable Portfolios, Inc.: ING VP Growth 6,679 110 6,569 - - - ING VP Index Plus LargeCap 989,798 442,688 547,110 99,176 12,643 86,533 ING VP Index Plus MidCap 1,075,901 467,221 608,680 90,604 7,688 82,916
108 Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- ING Variable Portfolios, Inc. (continued): ING VP Index Plus SmallCap 1,032,462 634,554 397,908 96,255 28,852 67,403 ING VP Small Company 27,484 6,772 20,712 - - - ING VP Value Opportunity 162,657 30,086 132,571 34,696 1,645 33,051 ING Variable Products Trust: ING VP Convertible 111,643 22,720 88,923 18,782 347 18,435 ING VP Growth Opportunities 1,984,390 760,395 1,223,995 931,175 259,800 671,375 ING VP International Value 5,020 82 4,938 - - - ING VP Large Company Value 151,517 46,425 105,092 45,138 30,153 14,985 ING VP LargeCap Growth 281,373 173,739 107,634 56,377 733 55,644 ING VP MagnaCap 1,873,780 706,779 1,167,001 632,349 53,590 578,759 ING VP MidCap Opportunities 1,700 - 1,700 - - - ING VP SmallCap Opportunities 6,167,933 1,352,225 4,815,708 2,548,996 811,701 1,737,295 INVESCO Variable Investment Funds, Inc.: INVESCO VIF - Financial Services 8,952,534 6,278,761 2,673,773 434,280 177,355 256,925 INVESCO VIF - Health Sciences 11,553,067 8,591,990 2,961,077 1,421,950 369,814 1,052,136 INVESCO VIF - Leisure 1,002,159 278,062 724,097 - - - INVESCO VIF - Utilities 1,413,473 305,358 1,108,115 141,238 22,159 119,079 Janus Aspen Series: Janus Aspen Series Balanced 57,501 3,830 53,671 - - - Janus Aspen Series Flexible Income 25,934 170 25,764 - - - Janus Aspen Series Growth 26,711 20 26,691 - - - Janus Aspen Series Worldwide Growth 13,323,220 12,946,666 376,554 146,938 8,275 138,663 Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 29,681 2,882 26,799 - - - Oppenheimer Strategic Bond 5,028 3,500 1,528 - - - PIMCO Variable Insurance Trust: PIMCO High Yield 27,197,895 19,409,516 7,788,379 21,217,537 13,988,901 7,228,636 PIMCO StocksPLUS Growth and Income 13,357,877 14,285,763 (927,886) 8,925,373 7,365,612 1,559,761 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 21,635 61 21,574 - - - Pioneer Fund VCT 3,769,608 1,315,200 2,454,408 268,899 26,350 242,549 Pioneer Mid-Cap Value VCT 7,875,737 2,670,048 5,205,689 576,552 96,828 479,724 Pioneer Small Company VCT 431,876 92,472 339,404 107,907 10,101 97,806 ProFunds VP: ProFund VP Bull 18,816,487 16,427,269 2,389,218 4,686,896 2,370,498 2,316,398 ProFund VP Europe 30 50,746,741 48,922,218 1,824,523 23,135,968 22,371,682 764,286 ProFund VP Small-Cap 44,254,935 41,001,972 3,252,963 21,972,144 19,853,663 2,118,481 Prudential Series Fund, Inc.: Prudential Jennison 45,072,785 43,503,839 1,568,946 26,252,187 19,904,133 6,348,054 Prudential SP Jennison International Growth 10,464,472 8,810,383 1,654,089 12,383,699 10,604,474 1,779,225 Putnam Variable Trust: Putnam VT Growth and Income 199,811 27,845 171,966 50,302 2,090 48,212 Putnam VT International Growth and Income 355,859 48,525 307,334 70,513 6,733 63,780 Putnam VT Voyager II 227,745 22,636 205,109 68,823 2,835 65,988 109
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 6. CHANGES IN UNITS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2002 2001 --------------------------------------------------------------------------------------- NET NET UNITS UNITS INCREASE UNITS UNITS INCREASE ISSUED REDEEMED (DECREASE) ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------- Travelers Series Fund Inc.: Smith Barney High Income 35 3,035 (3,000) 93 4,626 (4,533) Smith Barney International All Cap Growth 80 2,233 (2,153) 277 1,051 (774) Smith Barney Large Cap Value 114 3,173 (3,059) 6 3,282 (3,276) Smith Barney Money Market 16 6,191 (6,175) 15,005 10,129 4,876 UBS Series Trust: UBS Tactical Allocation 165,483 32,046 133,437 89,352 5,615 83,737 110
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY Accumulation unit value information for units outstanding, by Contract type, as of December 31, 2002 follows:
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ALL CAP Contracts in accumulation period: DVA 41,458.754 $8.65 $358,618 DVA Series 100 3,137.705 8.56 26,859 DVA Plus - Standard (pre February 2000) 94,490.061 8.59 811,670 DVA Plus - Standard (post January 2000 & post 2000) 355,697.642 8.57 3,048,329 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,519,149.243 8.55 30,088,726 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,205,675.709 8.54 35,916,471 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,646,986.989 8.51 14,015,859 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 957,911.527 8.50 8,142,248 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,505,988.275 8.49 12,785,840 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,652,427.624 8.47 30,936,062 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,438,659.230 8.46 12,171,057 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,308,447.252 8.45 27,956,379 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 5,615,264.398 8.42 47,280,526 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,104.907 8.41 26,112 Access - Annual Ratchet (post April 2001) 186,268.904 8.39 1,562,796 Access - Max 5.5 (post April 2001), Landmark - Max 7 892,250.465 8.37 7,468,136 111
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ALL CAP (CONTINUED) Access - 7% Solution (post April 2001) 142,957.557 $8.36 $1,195,125 Access - Max 7 (post April 2001) 381,029.823 8.34 3,177,789 ES II - Max 7 (post 2000), Generations - Max 7 915,050.379 8.44 7,723,025 Landmark - 7% Solution 294,227.794 8.40 2,471,513 Value 71,708.265 8.68 622,428 ----------------- ----------------- 29,231,892.503 $247,785,568 ================= ================= GCG TRUST ALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,130.121 $9.53 $29,830 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 75.548 9.53 720 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,247.033 9.53 21,414 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 8,123.878 9.52 77,339 ES II - Max 7 (post 2000), Generations - Max 7 4,915.691 9.52 46,797 ----------------- ----------------- 18,492.271 $176,100 ================= ================= GCG TRUST ASSET ALLOCATION GROWTH Contracts in accumulation period: DVA 2,027.410 $7.33 $14,861 DVA Plus - Standard (pre February 2000) 26,126.263 7.29 190,460 DVA Plus - Standard (post January 2000 & post 2000) 70,920.996 7.28 516,305 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 660,455.843 7.26 4,794,909 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,194,266.289 7.25 8,658,431 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 169,483.674 7.24 1,227,062 112
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST ASSET ALLOCATION GROWTH (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 187,063.134 $7.23 $1,352,466 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 337,704.673 7.22 2,438,228 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 501,198.187 7.21 3,613,639 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 446,755.295 7.20 3,216,638 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 987,291.899 7.20 7,108,502 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,284,001.843 7.18 9,219,133 Access - Annual Ratchet (post April 2001) 51,903.335 7.16 371,628 Access - Max 5.5 (post April 2001), Landmark - Max 7 224,828.378 7.15 1,607,523 Access - 7% Solution (post April 2001) 31,656.908 7.14 226,030 Access - Max 7 (post April 2001) 69,349.514 7.12 493,769 ES II - Max 7 (post 2000), Generations - Max 7 241,486.345 7.19 1,736,287 Landmark - 7% Solution 48,142.273 7.16 344,699 Value 16,589.694 7.35 121,934 ----------------- ----------------- 6,551,251.953 $47,252,504 ================= ================= GCG TRUST CAPITAL GROWTH Contracts in accumulation period: DVA 80 1,607.870 $10.52 $16,915 DVA 153,146.430 10.37 1,588,128 DVA Series 100 8,227.787 10.13 83,347 DVA Plus - Standard (pre February 2000) 380,316.760 10.20 3,879,231 DVA Plus - Standard (post January 2000 & post 2000) 142,766.855 10.17 1,451,939 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,368,760.600 10.10 54,224,482 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,918,853.410 10.06 19,303,665 113
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GROWTH (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,478,808.490 $9.99 $44,743,297 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 749,731.689 9.96 7,467,328 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 481,010.436 9.92 4,771,624 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 6,139,683.548 9.89 60,721,470 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 616,585.888 9.86 6,079,537 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,761,535.292 9.82 17,298,277 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,863,527.950 9.76 18,188,033 Access - Annual Ratchet (post April 2001) 30,974.973 9.66 299,218 Access - Max 5.5 (post April 2001), Landmark - Max 7 184,178.500 9.62 1,771,797 Access - 7% Solution (post April 2001) 58,702.850 9.59 562,960 Access - Max 7 (post April 2001) 67,393.152 9.52 641,583 ES II - Max 7 (post 2000), Generations - Max 7 249,302.116 9.79 2,440,668 Landmark - 7% Solution 56,387.454 9.69 546,394 Value 65,321.974 10.45 682,615 ----------------- ----------------- 24,776,824.024 $246,762,508 ================= ================= GCG TRUST CAPITAL GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,843.350 $10.46 $19,281 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 341.182 10.45 3,565 114
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GROWTH ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 6,840.247 $10.45 $71,481 ES II - Max 7 (post 2000), Generations - Max 7 5,100.584 10.45 53,301 ----------------- ----------------- 14,125.363 $147,628 ================= ================= GCG TRUST CAPITAL GUARDIAN SMALL CAP Currently payable annuity products: DVA 2,297.593 $13.52 $31,063 Contracts in accumulation period: DVA 80 14,858.695 13.71 203,713 DVA 214,874.378 13.52 2,905,102 DVA Series 100 13,572.305 13.18 178,883 DVA Plus - Standard (pre February 2000) 343,421.977 13.28 4,560,644 DVA Plus - Standard (post January 2000 & post 2000) 235,631.961 13.23 3,117,411 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,592,780.344 13.14 73,489,134 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,987,430.595 13.09 39,105,466 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,048,976.100 13.00 52,636,689 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,000,666.713 12.95 12,958,634 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 874,016.460 12.91 11,283,552 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,163,677.792 12.86 53,544,896 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 857,077.537 12.82 10,987,734 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,319,409.725 12.77 29,618,862 115
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CAPITAL GUARDIAN SMALL CAP (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,389,035.932 $12.68 $30,292,976 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,453.358 12.64 18,370 Access - Annual Ratchet (post April 2001) 61,290.156 12.55 769,191 Access - Max 5.5 (post April 2001), Landmark - Max 7 350,648.747 12.50 4,383,109 Access - 7% Solution (post April 2001) 54,701.732 12.46 681,584 Access - Max 7 (post April 2001) 69,007.571 12.37 853,624 ES II - Max 7 (post 2000), Generations - Max 7 518,748.741 12.73 6,603,671 Landmark - 7% Solution 123,957.985 12.59 1,560,631 Access One 1,141.000 14.00 15,974 Value 100,785.890 13.61 1,371,696 ----------------- ----------------- 26,339,463.287 $341,172,609 ================= ================= GCG TRUST CAPITAL GUARDIAN SMALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,340.969 $9.73 $51,968 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,152.595 9.72 11,203 ES II - Max 7 (post 2000), Generations - Max 7 26,474.859 9.72 257,336 ----------------- ----------------- 32,968.423 $320,507 ================= ================= GCG TRUST CORE BOND Contracts in accumulation period: DVA 80 753.424 $13.35 $10,058 DVA 90,062.736 13.13 1,182,524 DVA Series 100 738.171 12.76 9,419 DVA Plus - Standard (pre February 2000) 223,688.583 12.87 2,878,872 DVA Plus - Standard (post January 2000 & post 2000) 284,926.081 12.81 3,649,903 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,410,374.581 12.71 56,055,861 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,516,489.676 12.65 57,133,594 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,142,594.793 12.55 26,889,565 116
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CORE BOND (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 689,474.728 $12.49 $8,611,539 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,936,105.724 12.44 24,085,155 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,423,425.565 12.39 54,806,243 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,446,384.844 12.34 17,848,389 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,457,226.108 12.29 42,489,309 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 5,600,336.870 12.19 68,268,106 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 32,107.716 12.13 389,467 Access - Annual Ratchet (post April 2001) 134,069.579 12.03 1,612,857 Access - Max 5.5 (post April 2001), Landmark - Max 7 836,450.736 11.98 10,020,680 Access - 7% Solution (post April 2001) 299,610.090 11.93 3,574,348 Access - Max 7 (post April 2001) 390,105.072 11.83 4,614,943 ES II - Max 7 (post 2000), Generations - Max 7 1,325,734.470 12.24 16,226,990 Landmark - 7% Solution 529,439.956 12.08 6,395,635 Value 71,442.238 13.24 945,895 VA Option I 161,643.514 13.19 2,132,078 VA Option II 104,350.003 12.86 1,341,941 VA Option III 78,978.140 12.70 1,003,022 VA Bonus Option I 410,566.626 12.65 5,193,668 VA Bonus Option II 238,795.640 12.34 2,946,738 VA Bonus Option III 280,007.129 12.18 3,410,487 SmartDesign Advantage Option I 41,826.052 11.89 497,312 SmartDesign Advantage Option II 33,654.867 11.69 393,425 SmartDesign Advantage Option III 27,833.585 11.55 321,478 Rollover Choice Option I 11,209.365 13.41 150,318 Rollover Choice Option II 7,405.249 13.19 97,675 --------------- ---------------- 34,237,811.911 $425,187,494 =============== ================ GCG TRUST CORE BOND ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 27,862.818 $10.26 $285,873 117
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST CORE BOND ADVISOR (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,219.045 $10.26 $43,287 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 6,367.528 10.25 65,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 48,272.777 10.25 494,796 ES II - Max 7 (post 2000), Generations - Max 7 10,048.284 10.24 102,894 --------------- --------------- 96,770.452 $992,117 =============== =============== GCG TRUST DEVELOPING WORLD Currently payable annuity products: DVA 12,255.773 $6.36 $77,947 Contracts in accumulation period: DVA 80 14,178.783 6.42 91,028 DVA 475,932.987 6.36 3,026,934 DVA Series 100 18,313.765 6.25 114,461 DVA Plus - Standard (pre February 2000) 207,165.986 6.28 1,301,002 DVA Plus - Standard (post January 2000 & post 2000) 144,724.137 6.26 905,973 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,925,891.221 6.23 11,998,302 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,365,017.451 6.22 8,490,409 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,372,716.295 6.19 8,497,114 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 474,427.290 6.17 2,927,216 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 249,735.938 6.16 1,538,373 118
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DEVELOPING WORLD (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,283,289.404 $6.14 $7,879,397 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 256,922.106 6.13 1,574,933 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 690,414.368 6.11 4,218,432 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 847,173.047 6.08 5,150,812 Access - Annual Ratchet (post April 2001) 45,608.548 6.04 275,476 Access - Max 5.5 (post April 2001), Landmark - Max 7 87,622.124 6.02 527,485 Access - 7% Solution (post April 2001) 14,127.458 6.01 84,906 Access - Max 7 (post April 2001) 39,283.433 5.98 234,915 ES II - Max 7 (post 2000), Generations - Max 7 89,889.364 6.10 548,325 Landmark - 7% Solution 40,885.379 6.05 247,357 Value 46,745.779 6.39 298,706 --------------- --------------- 9,702,320.636 $60,009,503 =============== =============== GCG TRUST DEVELOPING WORLD ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 520.886 $9.71 $5,058 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 5,949.670 9.70 57,712 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 504.135 9.70 4,890 ES II - Max 7 (post 2000), Generations - Max 7 1,184.808 9.70 11,493 --------------- --------------- 8,159.499 $79,153 =============== =============== GCG TRUST DIVERSIFIED MID-CAP Contracts in accumulation period: DVA 14,377.938 $7.30 $104,959 DVA Series 100 547.871 7.24 3,967 DVA Plus - Standard (pre February 2000) 52,084.982 7.26 378,137 DVA Plus - Standard (post January 2000 & post 2000) 107,226.771 7.25 777,394 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,436,693.678 7.23 10,387,295 119
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DIVERSIFIED MID-CAP (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,947,601.094 $7.22 $14,061,680 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 504,098.037 7.21 3,634,547 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 239,616.364 7.20 1,725,238 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 877,091.558 7.19 6,306,288 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,210,498.995 7.18 8,691,383 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 839,243.527 7.17 6,017,376 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,611,467.331 7.17 11,554,221 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,302,130.917 7.15 16,460,236 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,418.819 7.14 10,130 Access - Annual Ratchet (post April 2001) 78,293.863 7.12 557,452 Access - Max 5.5 (post April 2001), Landmark - Max 7 492,026.422 7.12 3,503,228 Access - 7% Solution (post April 2001) 74,631.497 7.11 530,630 Access - Max 7 (post April 2001) 181,302.263 7.09 1,285,433 ES II - Max 7 (post 2000), Generations - Max 7 532,775.028 7.16 3,814,669 Landmark - 7% Solution 163,816.671 7.13 1,168,013 Value 28,075.151 7.31 205,229 --------------- --------------- 12,695,018.777 $91,177,505 =============== =============== GCG TRUST DIVERSIFIED MID-CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,407.942 $9.48 $51,267 120
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST DIVERSIFIED MID-CAP ADVISOR (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 432.092 $9.48 $4,096 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 243.004 9.47 2,301 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 12,952.240 9.47 122,658 ES II - Max 7 (post 2000), Generations - Max 7 4,137.894 9.47 39,186 --------------- --------------- 23,173.172 $219,508 =============== =============== GCG TRUST EQUITY GROWTH Contracts in accumulation period: DVA 3,698.022 $7.84 $28,992 DVA Plus - Standard (pre February 2000) 2,799.601 7.83 21,921 DVA Plus - Standard (post January 2000 & post 2000) 10,978.003 7.83 85,958 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 124,180.866 7.82 971,094 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 115,969.157 7.82 906,879 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 36,456.517 7.81 284,725 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 16,317.558 7.81 127,440 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 28,455.347 7.81 222,236 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 62,875.801 7.81 491,060 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 20,987.840 7.80 163,705 121
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY GROWTH (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 37,951.928 $7.80 $296,025 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 67,606.323 7.79 526,653 Access - Max 5.5 (post April 2001), Landmark - Max 7 10,421.530 7.78 81,080 Access - Max 7 (post April 2001) 852.028 7.78 6,629 ES II - Max 7 (post 2000), Generations - Max 7 10,170.532 7.80 79,330 Landmark - 7% Solution 8,348.943 7.79 65,038 Value 571.100 7.85 4,483 --------------- --------------- 558,641.096 $4,363,248 =============== =============== GCG TRUST EQUITY GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 500.893 $9.64 $4,829 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 15,788.036 9.63 152,039 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,058.799 9.63 19,826 ES II - Max 7 (post 2000), Generations - Max 7 29,214.728 9.63 281,338 --------------- --------------- 47,562.456 $458,032 =============== =============== GCG TRUST EQUITY INCOME Currently payable annuity products: DVA 80 1,348.359 $22.22 $29,661 DVA 25,612.255 21.61 553,481 Contracts in accumulation period: DVA 80 121,213.832 22.22 2,693,671 DVA 2,051,786.851 21.61 44,339,114 DVA Series 100 32,304.604 20.57 664,506 DVA Plus - Standard (pre February 2000) 255,606.846 20.89 5,339,627 DVA Plus - Standard (post January 2000 & post 2000) 159,632.560 20.72 3,307,587 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,796,771.768 20.45 57,193,983 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,137,260.309 20.28 43,343,639 122
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY INCOME (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,226,227.787 $20.03 $44,591,343 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 375,190.550 19.86 7,451,284 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 814,591.599 19.72 16,063,746 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,360,009.304 19.58 65,788,982 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 773,224.228 19.44 15,031,479 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,769,553.969 19.30 34,152,392 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,273,204.350 19.03 43,259,079 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 192.692 18.90 3,642 Access - Annual Ratchet (post April 2001) 69,736.079 18.63 1,299,183 Access - Max 5.5 (post April 2001), Landmark - Max 7 425,111.213 18.50 7,864,557 Access - 7% Solution (post April 2001) 90,035.804 18.37 1,653,958 Access - Max 7 (post April 2001) 94,236.389 18.11 1,706,621 ES II - Max 7 (post 2000), Generations - Max 7 479,847.384 19.17 9,198,674 Landmark - 7% Solution 151,475.992 18.76 2,841,690 Access One 875.000 23.18 20,283 Value 60,096.515 21.92 1,317,316 --------------- --------------- 20,545,146.239 $409,709,498 =============== =============== GCG TRUST EQUITY INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 14,864.732 $9.83 $146,120 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 18,285.717 9.82 179,566 123
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY INCOME ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 21,139.474 $9.82 $207,590 ES II - Max 7 (post 2000), Generations - Max 7 10,928.226 9.81 107,206 --------------- --------------- 65,218.149 $640,482 =============== =============== GCG TRUST EQUITY OPPORTUNITY Currently payable annuity products: DVA 14,478.487 $15.71 $227,457 Contracts in accumulation period: DVA 80 15,404.039 16.05 247,235 DVA 1,154,948.305 15.71 18,144,238 DVA Series 100 16,405.052 15.12 248,044 DVA Plus - Standard (pre February 2000) 284,899.727 15.31 4,361,815 DVA Plus - Standard (post January 2000 & post 2000) 184,671.967 15.21 2,808,861 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,929,610.455 15.06 44,119,933 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,951,375.489 14.96 29,192,577 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,915,535.853 14.82 43,208,241 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 692,996.783 14.72 10,200,913 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 479,670.392 14.64 7,022,375 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,453,225.380 14.56 50,278,962 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 577,200.232 14.48 8,357,859 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,643,361.524 14.41 23,680,840 124
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST EQUITY OPPORTUNITY (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,091,212.810 $14.25 $29,799,783 Access - Annual Ratchet (post April 2001) 41,941.988 14.02 588,027 Access - Max 5.5 (post April 2001), Landmark - Max 7 132,555.663 13.94 1,847,826 Access - 7% Solution (post April 2001) 34,165.539 13.87 473,876 Access - Max 7 (post April 2001) 61,196.435 13.72 839,615 ES II - Max 7 (post 2000), Generations - Max 7 263,932.617 14.33 3,782,154 Landmark - 7% Solution 44,959.241 14.10 633,925 Value 56,140.426 15.88 891,510 ----------------- --------------- 19,039,888.404 $280,956,066 ================= =============== GCG TRUST EQUITY OPPORTUNITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 169.464 $9.75 $1,652 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,428.703 9.74 23,656 ES II - Max 7 (post 2000), Generations - Max 7 860.908 9.74 8,385 ----------------- --------------- 3,459.075 $33,693 ================= =============== GCG TRUST FOCUS VALUE Contracts in accumulation period: DVA Series 100 403.111 $8.37 $3,374 DVA Plus - Standard (post January 2000 & post 2000) 88.979 8.38 746 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 93,267.838 8.37 780,652 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 91,570.714 8.37 766,447 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 69,302.448 8.36 579,368 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 22,197.693 8.36 185,573 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 36,243.979 8.36 303,000 125
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FOCUS VALUE (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 94,260.227 $8.35 $787,073 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 16,518.844 8.35 137,932 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 53,879.191 8.35 449,891 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 94,082.902 8.34 784,651 Access - Annual Ratchet (post April 2001) 5,396.319 8.33 44,951 Access - Max 5.5 (post April 2001), Landmark - Max 7 15,877.599 8.33 132,260 Access - 7% Solution (post April 2001) 20,649.316 8.33 172,009 Access - Max 7 (post April 2001) 8,470.384 8.32 70,474 ES II - Max 7 (post 2000), Generations - Max 7 84,874.579 8.35 708,703 Landmark - 7% Solution 1,398.706 8.34 11,665 Value 1,571.082 8.40 13,197 --------------- --------------- 710,053.911 $5,931,966 =============== =============== GCG TRUST FOCUS VALUE ADVISOR Contracts in accumulation period: DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 222.890 $10.17 $2,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,252.965 10.16 12,730 ES II - Max 7 (post 2000), Generations - Max 7 3,259.390 10.16 33,115 --------------- --------------- 4,735.245 $48,112 =============== =============== GCG TRUST FULLY MANAGED Currently payable annuity products: DVA 80 476.959 $30.37 $14,885 DVA 17,327.473 29.53 511,680 Contracts in accumulation period: DVA 80 46,348.529 30.37 1,407,205 DVA 1,134,176.173 29.53 33,492,223 DVA Series 100 21,165.295 28.11 594,956 DVA Plus - Standard (pre February 2000) 435,649.731 28.55 12,437,800 DVA Plus - Standard (post January 2000 & post 2000) 281,689.371 28.32 7,977,443 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,326,018.141 27.96 148,915,467 126
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FULLY MANAGED (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,380,116.820 $27.72 $121,416,838 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,093,955.209 27.37 112,051,554 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 639,976.992 27.14 17,368,976 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,232,631.081 26.95 33,219,408 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 5,387,390.525 26.76 144,166,570 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,345,841.222 26.57 35,759,001 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,716,909.826 26.38 98,052,081 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,927,374.682 26.01 102,151,015 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 12,094.796 25.83 312,409 Access - Annual Ratchet (post April 2001) 122,475.644 25.46 3,118,230 Access - Max 5.5 (post April 2001), Landmark - Max 7 442,656.923 25.28 11,190,367 Access - 7% Solution (post April 2001) 164,221.185 25.10 4,121,952 Access - Max 7 (post April 2001) 217,796.256 24.75 5,390,457 ES II - Max 7 (post 2000), Generations - Max 7 1,256,046.260 26.20 32,908,412 Landmark - 7% Solution 232,111.293 25.65 5,953,655 Value 90,281.116 29.95 2,703,919 ----------------- ---------------- 34,524,731.502 $935,236,503 ================= ================ GCG TRUST FULLY MANAGED ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 8,749.639 $10.01 $87,584 127
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FULLY MANAGED ADVISOR (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,656.240 $10.01 $16,579 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 11,784.255 10.00 117,843 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 51,407.699 10.00 514,077 ES II - Max 7 (post 2000), Generations - Max 7 15,783.663 9.99 157,679 ---------------- --------------- 89,381.496 $893,762 ================ =============== GCG TRUST FUNDAMENTAL GROWTH FOCUS Contracts in accumulation period: DVA Plus - Standard (post January 2000 & post 2000) 4,821.861 $7.98 $38,478 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 44,772.613 7.97 356,838 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 27,663.603 7.97 220,479 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 18,057.041 7.97 143,915 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 754.698 7.96 6,007 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 60,486.886 7.96 481,476 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 44,257.084 7.96 352,286 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 16,838.025 7.96 134,031 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 27,465.089 7.95 218,347 128
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST FUNDAMENTAL GROWTH FOCUS (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 62,915.346 $7.95 $500,177 Access - Max 5.5 (post April 2001), Landmark - Max 7 8,896.164 7.94 70,636 Access - 7% Solution (post April 2001) 297.033 7.93 2,355 ES II - Max 7 (post 2000), Generations - Max 7 26,080.260 7.95 207,338 Landmark - 7% Solution 1,011.739 7.94 8,033 Value 246.288 8.00 1,970 ---------------- ------------- 344,563.730 $2,742,366 ================ ============= GCG TRUST FUNDAMENTAL GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,049.598 $9.45 $38,269 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 6,209.274 9.44 58,616 ES II - Max 7 (post 2000), Generations - Max 7 1,178.801 9.44 11,128 ---------------- ------------- 11,437.673 $108,013 ================ ============= GCG TRUST GLOBAL FRANCHISE Contracts in accumulation period: DVA 80 1,187.427 $8.88 $10,544 DVA 640.174 8.87 5,678 DVA Plus - Standard (pre February 2000) 11,623.141 8.86 102,981 DVA Plus - Standard (post January 2000 & post 2000) 23,085.952 8.85 204,311 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 220,958.044 8.85 1,955,479 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 255,200.584 8.84 2,255,973 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 135,600.201 8.84 1,198,706 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 27,705.332 8.83 244,638 129
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GLOBAL FRANCHISE (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 136,897.046 $8.83 $1,208,801 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 222,557.194 8.83 1,965,180 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 53,322.828 8.83 470,841 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 133,793.649 8.82 1,180,060 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 201,785.907 8.82 1,779,752 Access - Annual Ratchet (post April 2001) 5,968.492 8.81 52,582 Access - Max 5.5 (post April 2001), Landmark - Max 7 40,257.987 8.80 354,270 Access - 7% Solution (post April 2001) 1,758.151 8.80 15,472 Access - Max 7 (post April 2001) 34,645.719 8.80 304,882 ES II - Max 7 (post 2000), Generations - Max 7 130,191.636 8.82 1,148,290 Landmark - 7% Solution 14,613.060 8.81 128,741 Value 9,607.419 8.88 85,314 ----------------- --------------- 1,661,399.943 $14,672,495 ================= =============== GCG TRUST GLOBAL FRANCHISE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 29,031.188 $9.52 $276,377 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 412.034 9.52 3,923 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,167.197 9.51 11,100 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 26,238.388 9.51 249,527 ES II - Max 7 (post 2000), Generations - Max 7 17,515.525 9.51 166,573 ----------------- --------------- 74,364.332 $707,500 ================= =============== 130
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GROWTH Contracts in accumulation period: DVA 80 12,857.714 $10.95 $140,792 DVA 368,583.831 10.81 3,984,391 DVA Series 100 10,762.408 10.55 113,543 DVA Plus - Standard (pre February 2000) 566,759.980 10.62 6,018,991 DVA Plus - Standard (post January 2000 & post 2000) 445,014.880 10.59 4,712,708 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,372,394.796 10.52 130,157,593 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 5,599,656.965 10.48 58,684,405 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 8,151,063.532 10.41 84,852,571 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 2,302,846.613 10.37 23,880,519 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,434,608.045 10.34 14,833,847 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 11,094,010.020 10.30 114,268,303 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,379,115.515 10.27 14,163,516 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 4,731,610.364 10.23 48,404,374 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 4,149,073.607 10.16 42,154,588 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,801.069 10.13 18,245 Access - Annual Ratchet (post April 2001) 60,336.832 10.06 606,989 Access - Max 5.5 (post April 2001), Landmark - Max 7 311,442.281 10.02 3,120,652 Access - 7% Solution (post April 2001) 62,459.653 9.99 623,972 Access - Max 7 (post April 2001) 134,109.863 9.92 1,330,370 ES II - Max 7 (post 2000), Generations - Max 7 464,260.700 10.20 4,735,459 131
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST GROWTH (CONTINUED) Landmark - 7% Solution 149,093.481 $10.09 $1,504,353 Access One 808.000 11.18 9,033 Value 151,569.894 10.88 1,649,080 ----------------- --------------- 53,954,240.043 $559,968,294 ================= =============== GCG TRUST GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,337.665 $9.78 $42,422 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,872.645 9.77 28,066 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,205.411 9.76 21,525 ----------------- --------------- 9,415.721 $92,013 ================= =============== GCG TRUST HARD ASSETS Currently payable annuity products: DVA 1,451.663 $14.85 $21,557 Contracts in accumulation period: DVA 80 35,342.359 15.27 539,678 DVA 217,667.924 14.85 3,232,369 DVA Series 100 11,963.287 14.13 169,041 DVA Plus - Standard (pre February 2000) 64,493.201 14.35 925,477 DVA Plus - Standard (post January 2000 & post 2000) 36,131.929 14.23 514,157 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 575,255.091 14.05 8,082,334 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 436,184.996 13.94 6,080,419 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 561,649.827 13.76 7,728,302 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 62,770.602 13.64 856,191 132
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST HARD ASSETS (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 108,459.704 $13.55 $1,469,629 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 968,858.495 13.45 13,031,147 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 120,307.849 13.36 1,607,313 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 302,601.665 13.26 4,012,498 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 932,326.908 13.08 12,194,836 Access - Annual Ratchet (post April 2001) 23,531.967 12.80 301,209 Access - Max 5.5 (post April 2001), Landmark - Max 7 43,248.118 12.71 549,684 Access - 7% Solution (post April 2001) 11,014.885 12.62 139,008 Access - Max 7 (post April 2001) 23,773.123 12.44 295,738 ES II - Max 7 (post 2000), Generations - Max 7 389,188.424 13.17 5,125,612 Landmark - 7% Solution 14,039.187 12.89 180,965 Access One 14,311.339 15.93 227,980 Value 31,695.351 15.06 477,332 ----------------- -------------- 4,986,267.894 $67,762,476 ================= ============== GCG TRUST HARD ASSETS ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,119.434 $9.83 $11,004 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 25.690 9.83 253 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 239.543 9.82 2,352 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 7,945.259 9.82 78,022 ES II - Max 7 (post 2000), Generations - Max 7 511.225 9.82 5,020 ----------------- -------------- 9,841.151 $96,651 ================= ============== 133
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL ENHANCED EAFE Contracts in accumulation period: DVA 2,423.918 $8.25 $19,997 DVA Plus - Standard (pre February 2000) 4,118.741 8.23 33,897 DVA Plus - Standard (post January 2000 & post 2000) 2,548.665 8.23 20,976 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 72,897.915 8.22 599,221 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 106,211.466 8.22 873,058 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 33,208.173 8.22 272,971 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,278.309 8.21 35,125 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 81,976.969 8.21 673,031 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 52,606.310 8.21 431,898 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,890.018 8.21 81,197 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 51,442.150 8.20 421,826 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 138,594.248 8.20 1,136,473 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 466.576 8.19 3,821 Access - Annual Ratchet (post April 2001) 1,612.722 8.19 13,208 Access - Max 5.5 (post April 2001), Landmark - Max 7 6,369.326 8.19 52,165 Access - 7% Solution (post April 2001) 4,136.609 8.18 33,837 Access - Max 7 (post April 2001) 3,184.248 8.18 26,047 ES II - Max 7 (post 2000), Generations - Max 7 12,518.879 8.20 102,655 Landmark - 7% Solution 8,531.245 8.19 69,871 Value 1,514.364 8.25 12,494 VA Option I 3,925.552 8.25 32,386 VA Option II 42.615 8.23 351 134
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL ENHANCED EAFE (CONTINUED) VA Bonus Option I 1,123.321 $8.22 $9,234 VA Bonus Option II 806.164 8.21 6,619 VA Bonus Option III 2,716.806 8.20 22,278 SmartDesign Advantage Option I 71.304 8.18 583 SmartDesign Advantage Option II 587.775 8.17 4,802 ---------------- -------------- 607,804.388 $4,990,021 ================ ============== GCG TRUST INTERNATIONAL ENHANCED EAFE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,935.485 $9.76 $38,410 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,208.703 9.75 89,785 ES II - Max 7 (post 2000), Generations - Max 7 3,747.359 9.74 36,499 ---------------- -------------- 16,891.547 $164,694 ================ ============== GCG TRUST INTERNATIONAL EQUITY Contracts in accumulation period: DVA 14,806.091 $7.41 $109,713 DVA Plus - Standard (pre February 2000) 5,838.470 7.29 42,562 DVA Plus - Standard (post January 2000 & post 2000) 41,512.023 7.26 301,377 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,449,069.007 7.16 31,855,334 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,834,152.254 7.19 13,187,555 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,745,092.452 7.14 12,459,960 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 700,469.554 7.11 4,980,339 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 244,423.432 7.09 1,732,962 135
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNATIONAL EQUITY (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,107,916.003 $7.07 $29,042,966 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 261,177.037 7.04 1,838,686 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,565,174.958 7.02 10,987,528 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,470,429.332 6.97 10,248,892 Access - Annual Ratchet (post April 2001) 8,794.725 6.90 60,684 Access - Max 5.5 (post April 2001), Landmark - Max 7 132,382.931 6.87 909,471 Access - 7% Solution (post April 2001) 28,442.290 6.85 194,830 Access - Max 7 (post April 2001) 28,306.916 6.80 192,487 ES II - Max 7 (post 2000), Generations - Max 7 221,112.964 6.99 1,545,580 Landmark - 7% Solution 55,117.980 6.92 381,416 Value 54,578.332 7.46 407,154 ----------------- ---------------- 16,968,796.751 $120,479,496 ================= ================ GCG TRUST INTERNATIONAL EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,275.003 $9.80 $22,295 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 7,027.611 9.79 68,800 ES II - Max 7 (post 2000), Generations - Max 7 16,649.992 9.79 163,003 ----------------- ---------------- 25,952.606 $254,098 ================= ================ GCG TRUST INTERNET TOLLKEEPER Contracts in accumulation period: DVA 2,033.594 $4.68 $9,517 DVA Series 100 1,507.485 4.65 7,010 DVA Plus - Standard (pre February 2000) 3,020.064 4.66 14,073 DVA Plus - Standard (post January 2000 & post 2000) 9,099.556 4.66 42,404 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 387,485.791 4.65 1,801,809 136
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNET TOLLKEEPER (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 519,243.692 $4.64 $2,409,291 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 109,776.291 4.64 509,362 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 18,672.457 4.63 86,453 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 240,376.369 4.63 1,112,943 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 151,985.088 4.63 703,691 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 181,314.866 4.62 837,675 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 220,934.965 4.62 1,020,720 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 447,885.199 4.61 2,064,751 Access - Annual Ratchet (post April 2001) 41,859.479 4.60 192,554 Access - Max 5.5 (post April 2001), Landmark - Max 7 141,022.746 4.59 647,294 Access - 7% Solution (post April 2001) 23,045.661 4.59 105,780 Access - Max 7 (post April 2001) 80,239.506 4.58 367,497 ES II - Max 7 (post 2000), Generations - Max 7 161,332.193 4.61 743,741 Landmark - 7% Solution 22,077.083 4.60 101,555 Value 5,625.439 4.69 26,383 ----------------- --------------- 2,768,537.524 $12,804,503 ================= =============== GCG TRUST INTERNET TOLLKEEPER ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 335.041 $10.42 $3,491 137
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INTERNET TOLLKEEPER ADVISOR (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,329.443 $10.41 $13,840 ES II - Max 7 (post 2000), Generations - Max 7 3,454.704 10.40 35,929 ----------------- -------------- 5,119.188 $53,260 ================= ============== GCG TRUST INVESTORS Contracts in accumulation period: DVA 5,944.138 $8.17 $48,564 DVA Plus - Standard (pre February 2000) 37,817.102 8.11 306,697 DVA Plus - Standard (post January 2000 & post 2000) 169,038.915 8.09 1,367,525 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,177,891.614 8.07 9,505,585 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,674,081.360 8.06 13,493,096 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 590,391.269 8.04 4,746,746 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 330,087.985 8.02 2,647,306 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,030,210.891 8.01 8,251,989 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,371,276.985 8.00 10,970,216 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 534,292.847 7.99 4,269,000 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,333,386.702 7.98 10,640,426 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,079,376.721 7.95 16,531,045 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,596.183 7.94 20,614 138
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST INVESTORS (CONTINUED) Access - Annual Ratchet (post April 2001) 88,534.000 $7.92 $701,189 Access - Max 5.5 (post April 2001), Landmark - Max 7 294,204.803 7.91 2,327,160 Access - 7% Solution (post April 2001) 33,193.925 7.89 261,900 Access - Max 7 (post April 2001) 215,194.574 7.87 1,693,581 ES II - Max 7 (post 2000), Generations - Max 7 336,121.073 7.96 2,675,524 Landmark - 7% Solution 160,813.629 7.93 1,275,252 Value 51,170.187 8.19 419,084 ----------------- --------------- 11,515,624.903 $92,152,499 ================= =============== GCG TRUST INVESTORS ADVISOR Contracts in accumulation period: DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 5,609.111 $9.75 $54,689 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,588.611 9.75 25,239 ES II - Max 7 (post 2000), Generations - Max 7 22,298.988 9.74 217,192 ----------------- --------------- 30,496.710 $297,120 ================= =============== GCG TRUST J.P. MORGAN FLEMING SMALL CAP EQUITY Contracts in accumulation period: DVA 3,893.026 $7.87 $30,638 DVA Plus - Standard (pre February 2000) 6,459.288 7.85 50,705 DVA Plus - Standard (post January 2000 & post 2000) 13,266.013 7.85 104,138 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 169,670.331 7.85 1,331,912 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 209,858.323 7.84 1,645,289 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 31,083.841 7.84 243,697 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 14,675.334 7.83 114,908 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 114,379.561 7.83 895,592 139
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST J.P. MORGAN FLEMING SMALL CAP EQUITY (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 166,809.449 $7.83 $1,306,118 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 72,176.099 7.83 565,139 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 95,249.109 7.82 744,848 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 155,619.727 7.82 1,216,946 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,107.867 7.82 16,484 Access - Annual Ratchet (post April 2001) 5,346.492 7.81 41,756 Access - Max 5.5 (post April 2001), Landmark - Max 7 37,673.562 7.81 294,231 Access - 7% Solution (post April 2001) 47.133 7.81 368 Access - Max 7 (post April 2001) 8,558.644 7.80 66,757 ES II - Max 7 (post 2000), Generations - Max 7 54,217.816 7.82 423,983 Landmark - 7% Solution 18,981.527 7.81 148,246 Value 9,884.594 7.87 77,792 VA Option I 2,395.075 7.87 18,849 VA Option II 202.769 7.85 1,592 VA Option III 74.699 7.85 586 VA Bonus Option I 11,543.916 7.84 90,504 VA Bonus Option II 2,705.468 7.83 21,184 VA Bonus Option III 2,734.971 7.82 21,387 SmartDesign Advantage Option I 277.276 7.80 2,163 SmartDesign Advantage Option II 1,939.734 7.79 15,111 ----------------- --------------- 1,211,831.644 $9,490,923 ================= =============== GCG TRUST J.P. MORGAN FLEMING SMALL CAP ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,546.872 $9.49 $119,070 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 51.434 9.49 488 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 11,332.630 9.48 107,433 140
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST J.P. MORGAN FLEMING SMALL CAP ADVISOR (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 12,802.704 $9.48 $121,370 ES II - Max 7 (post 2000), Generations - Max 7 17,168.053 9.48 162,753 ----------------- --------------- 53,901.693 $511,114 ================= =============== GCG TRUST JANUS GROWTH AND INCOME Contracts in accumulation period: DVA 19,775.056 $7.11 $140,601 DVA Series 100 3,746.840 7.06 26,453 DVA Plus - Standard (pre February 2000) 78,084.441 7.07 552,057 DVA Plus - Standard (post January 2000 & post 2000) 257,195.925 7.07 1,818,375 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,676,922.509 7.05 11,822,304 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,831,574.297 7.04 19,934,283 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 719,851.323 7.03 5,060,555 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 315,169.992 7.02 2,212,493 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,160,151.753 7.01 8,132,664 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,909,356.758 7.00 13,365,497 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,307,255.573 6.99 9,137,716 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,513,591.776 6.99 17,570,007 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,186,621.478 6.97 22,210,752 141
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST JANUS GROWTH AND INCOME (CONTINUED) Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,288.195 $6.96 $36,806 Access - Annual Ratchet (post April 2001) 132,023.878 6.95 917,566 Access - Max 5.5 (post April 2001), Landmark - Max 7 584,691.147 6.94 4,057,757 Access - 7% Solution (post April 2001) 103,609.107 6.93 718,011 Access - Max 7 (post April 2001) 255,764.423 6.91 1,767,332 ES II - Max 7 (post 2000), Generations - Max 7 803,023.067 6.98 5,605,101 Landmark - 7% Solution 184,660.669 6.95 1,283,392 Value 54,814.567 7.13 390,828 VA Option I 150,753.831 7.12 1,073,367 VA Option II 48,439.217 7.07 342,465 VA Option III 17,896.151 7.05 126,168 VA Bonus Option I 167,273.116 7.04 1,177,603 VA Bonus Option II 75,159.946 6.99 525,368 VA Bonus Option III 38,566.865 6.97 268,811 SmartDesign Advantage Option I 4,647.962 6.92 32,164 SmartDesign Advantage Option II 7,683.653 6.89 52,940 SmartDesign Advantage Option III 2,197.487 6.87 15,097 ----------------- ---------------- 18,615,791.002 $130,374,533 ================= ================ GCG TRUST JANUS GROWTH AND INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 20,265.683 $9.73 $197,185 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 6,270.030 9.72 60,945 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 24,716.980 9.72 240,249 ES II - Max 7 (post 2000), Generations - Max 7 9,121.503 9.71 88,570 ----------------- ---------------- 60,374.196 $586,949 ================= ================ GCG TRUST LARGE CAP VALUE Contracts in accumulation period: DVA 45,296.402 $7.62 $345,159 DVA Series 100 2,185.539 7.54 16,479 DVA Plus - Standard (pre February 2000) 154,789.655 7.56 1,170,210 DVA Plus - Standard (post January 2000 & post 2000) 533,166.943 7.55 4,025,410 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,513,819.120 7.53 33,989,058 142
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LARGE CAP VALUE (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 6,465,372.229 $7.52 $48,619,599 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,128,387.026 7.50 15,962,903 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,328,528.910 7.48 9,937,396 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,660,134.746 7.47 19,871,207 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,117,976.668 7.46 30,720,106 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 2,719,020.902 7.45 20,256,706 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 5,103,820.816 7.44 37,972,427 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 6,279,536.964 7.42 46,594,164 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 685.718 7.41 5,081 Access - Annual Ratchet (post April 2001) 153,495.420 7.39 1,134,331 Access - Max 5.5 (post April 2001), Landmark - Max 7 916,295.246 7.37 6,753,096 Access - 7% Solution (post April 2001) 190,461.403 7.36 1,401,796 Access - Max 7 (post April 2001) 486,302.358 7.34 3,569,459 ES II - Max 7 (post 2000), Generations - Max 7 1,216,648.520 7.43 9,039,699 Landmark - 7% Solution 483,293.216 7.40 3,576,370 Access One 185.000 7.73 1,430 Value 102,148.307 7.64 780,413 ----------------- ---------------- 39,601,551.108 $295,742,499 ================= ================ 143
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LARGE CAP VALUE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 8,771.780 $10.27 $90,086 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 220.967 10.26 2,267 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,363.630 10.26 96,071 ES II - Max 7 (post 2000), Generations - Max 7 14,142.339 10.25 144,959 ----------------- --------------- 32,498.716 $333,383 ================= =============== GCG TRUST LIMITED MATURITY BOND Currently payable annuity products: DVA 80 2,359.019 $21.88 $51,615 DVA 6,619.882 21.27 140,805 Contracts in accumulation period: DVA 80 34,224.282 21.88 748,828 DVA 846,602.221 21.27 18,007,229 DVA Series 100 12,011.152 20.25 243,226 DVA Plus - Standard (pre February 2000) 431,757.457 20.58 8,885,568 DVA Plus - Standard (post January 2000 & post 2000) 325,166.054 20.38 6,626,884 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,261,694.220 20.16 126,235,755 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 3,840,532.602 19.95 76,618,625 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,063,485.056 19.73 60,442,560 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 629,610.846 19.53 12,296,300 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 917,937.051 19.40 17,807,979 144
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIMITED MATURITY BOND (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,436,722.906 $19.29 $85,584,385 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,001,052.596 19.12 19,140,126 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,793,640.320 18.99 53,051,230 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,647,004.840 18.72 49,551,931 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,404.724 18.62 119,256 Access - Annual Ratchet (post April 2001) 115,924.795 18.36 2,128,379 Access - Max 5.5 (post April 2001), Landmark - Max 7 187,662.150 18.23 3,421,081 Access - 7% Solution (post April 2001) 102,237.878 18.10 1,850,506 Access - Max 7 (post April 2001) 117,719.660 17.84 2,100,119 ES II - Max 7 (post 2000), Generations - Max 7 457,642.573 18.89 8,644,868 Landmark - 7% Solution 148,372.597 18.49 2,743,409 Access One 1,261.000 22.84 28,801 Value 118,011.620 21.60 2,549,051 ----------------- ---------------- 28,505,657.501 $559,018,516 ================= ================ GCG TRUST LIQUID ASSET Currently payable annuity products: DVA 80 2,612.969 $17.21 $44,969 DVA 1,526.708 16.74 25,557 Contracts in accumulation period: DVA 80 149,703.142 17.21 2,576,391 DVA 679,365.487 16.74 11,372,578 DVA Series 100 44,784.895 15.93 713,423 DVA Plus - Standard (pre February 2000) 695,808.213 16.18 11,258,177 DVA Plus - Standard (post January 2000 & post 2000) 337,508.715 16.00 5,400,139 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,089,343.159 15.84 191,495,196 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 10,877,062.661 15.66 170,334,801 145
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIQUID ASSET (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 5,577,965.813 $15.51 $86,514,250 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 2,297,033.266 15.33 35,213,520 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,599,933.376 15.23 24,366,985 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 8,964,021.189 15.17 135,984,201 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,590,575.818 15.01 23,874,543 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 10,613,767.944 14.91 158,251,280 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 7,015,870.143 14.70 103,133,291 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,321.100 14.64 282,861 Access - Annual Ratchet (post April 2001) 327,508.915 14.43 4,725,954 Access - Max 5.5 (post April 2001), Landmark - Max 7 514,408.939 14.33 7,371,480 Access - 7% Solution (post April 2001) 102,402.302 14.23 1,457,185 Access - Max 7 (post April 2001) 300,237.886 14.03 4,212,338 ES II - Max 7 (post 2000), Generations - Max 7 749,575.552 14.85 11,131,197 Landmark - 7% Solution 246,747.572 14.54 3,587,710 Value 117,368.795 16.98 1,992,922 VA Option I 125,681.154 16.86 2,118,984 VA Option II 65,629.633 16.16 1,060,575 VA Option III 17,951.798 15.82 283,997 VA Bonus Option I 379,646.273 15.71 5,964,243 VA Bonus Option II 116,033.602 15.05 1,746,306 VA Bonus Option III 130,082.443 14.74 1,917,415 SmartDesign Advantage Option I 948,016.951 14.15 13,414,440 SmartDesign Advantage Option II 44,327.639 13.75 609,505 SmartDesign Advantage Option III 29,720.969 13.46 400,044 Rollover Choice Option I 25,088.627 17.34 435,037 ----------------- ----------------- 66,796,633.647 $1,023,271,494 ================= ================= 146
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST LIQUID ASSET ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 28,048.150 $9.99 $280,201 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 14,084.319 9.99 140,702 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 14,647.450 9.98 146,182 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 65,111.528 9.98 649,813 ES II - Max 7 (post 2000), Generations - Max 7 58,442.123 9.98 583,252 ----------------- ---------------- 180,333.570 $1,800,150 ================= ================ GCG TRUST MANAGED GLOBAL Currently payable annuity products: DVA 6,904.811 $14.39 $99,360 Contracts in accumulation period: DVA 80 12,796.817 14.69 187,985 DVA 1,163,854.594 14.39 16,747,868 DVA Series 100 19,801.323 13.89 275,040 DVA Plus - Standard (pre February 2000) 392,630.543 14.02 5,504,680 DVA Plus - Standard (post January 2000 & post 2000) 262,335.765 13.93 3,654,337 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,965,665.844 13.80 27,126,189 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,246,689.590 13.71 30,802,114 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,796,757.957 13.59 38,007,941 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 629,167.687 13.50 8,493,764 147
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MANAGED GLOBAL (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,121,603.349 $13.43 $15,063,133 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 1,143,491.481 13.36 15,277,046 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 592,153.300 13.29 7,869,717 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,564,387.791 13.23 20,696,850 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,515,103.147 13.09 19,832,700 Access - Annual Ratchet (post April 2001) 44,003.244 12.89 567,202 Access - Max 5.5 (post April 2001), Landmark - Max 7 210,410.956 12.82 2,697,468 Access - 7% Solution (post April 2001) 59,805.081 12.75 762,515 Access - Max 7 (post April 2001) 102,390.142 12.62 1,292,164 ES II - Max 7 (post 2000), Generations - Max 7 367,449.857 13.16 4,835,640 Landmark - 7% Solution 127,169.390 12.95 1,646,844 Access One 953.000 15.12 14,409 Value 113,467.340 14.51 1,646,411 ----------------- ---------------- 16,458,993.009 $223,101,377 ================= ================ GCG TRUST MANAGED GLOBAL ADVISOR Contracts in accumulation period: Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 3,121.056 $10.23 $31,928 ES II - Max 7 (post 2000), Generations - Max 7 1,726.583 10.23 17,663 ----------------- ---------------- 4,847.639 $49,591 ================= ================ GCG TRUST MID-CAP GROWTH Currenlty payable annuity products: DVA 3,693.891 $16.62 $61,392 Contracts in accumulation period: DVA 80 24,281.313 16.90 410,354 DVA 658,498.563 16.62 10,944,247 DVA Series 100 11,781.116 16.14 190,147 DVA Plus - Standard (pre February 2000) 356,065.245 16.28 5,796,742 DVA Plus - Standard (post January 2000 & post 2000) 262,443.098 16.21 4,254,203 148
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MID-CAP GROWTH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,485,147.242 $16.05 $88,036,613 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 3,084,371.759 16.01 49,380,792 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,781,797.316 15.88 60,054,941 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,067,107.577 15.81 16,870,971 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 844,739.953 15.74 13,296,207 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 4,651,809.596 15.68 72,940,374 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 911,394.113 15.61 14,226,862 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,356,960.176 15.55 36,650,731 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,751,560.359 15.42 42,429,061 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,307.595 15.35 20,072 Access - Annual Ratchet (post April 2001) 59,471.114 15.22 905,150 Access - Max 5.5 (post April 2001), Landmark - Max 7 309,800.690 15.16 4,696,578 Access - 7% Solution (post April 2001) 60,108.378 15.10 907,637 Access - Max 7 (post April 2001) 106,351.561 14.97 1,592,083 ES II - Max 7 (post 2000), Generations - Max 7 511,368.087 15.48 7,915,978 Landmark - 7% Solution 130,301.492 15.29 1,992,310 Granite PrimElite - Standard 2,558.699 16.28 41,656 Granite PrimElite - Annual Ratchet 24,641.442 16.05 395,495 Access One 53.000 17.32 918 Value 90,271.530 16.76 1,512,951 ----------------- ---------------- 27,547,884.905 $435,524,465 ================= ================ 149
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST MID-CAP GROWTH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,630.831 $9.77 $25,703 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,465.638 9.76 14,305 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 11,583.092 9.76 113,051 ES II - Max 7 (post 2000), Generations - Max 7 40,595.693 9.75 395,808 ----------------- --------------- 56,275.254 $548,867 ================= =============== GCG TRUST REAL ESTATE Currently payable annuity products: DVA 2,632.724 $29.64 $78,034 Contracts in accumulation period: DVA 80 14,372.816 30.48 438,083 DVA 294,492.593 29.64 8,728,760 DVA Series 100 6,317.688 28.21 178,222 DVA Plus - Standard (pre February 2000) 99,481.407 28.65 2,850,142 DVA Plus - Standard (post January 2000 & post 2000) 71,426.257 28.42 2,029,934 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,167,126.261 28.06 32,749,563 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 947,489.751 27.82 26,359,165 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 784,788.188 27.47 21,558,132 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 149,145.345 27.24 4,062,719 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 242,782.471 27.05 6,567,266 150
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST REAL ESTATE (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 977,817.612 $26.86 $26,264,181 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 271,008.977 26.67 7,227,809 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 639,503.760 26.48 16,934,060 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 768,502.886 26.11 20,065,610 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 695.890 25.92 18,037 Access - Annual Ratchet (post April 2001) 28,955.148 25.56 740,094 Access - Max 5.5 (post April 2001), Landmark - Max 7 77,757.492 25.38 1,973,485 Access - 7% Solution (post April 2001) 17,947.437 25.20 452,275 Access - Max 7 (post April 2001) 48,340.758 24.84 1,200,784 ES II - Max 7 (post 2000), Generations - Max 7 222,334.059 26.29 5,845,162 Landmark - 7% Solution 33,005.212 25.74 849,554 Access One 74.000 31.80 2,353 Value 15,433.848 30.06 463,941 ----------------- ---------------- 6,881,432.580 $187,637,365 ================= ================ GCG TRUST REAL ESTATE ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 12,247.451 $9.61 $117,698 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,275.170 9.60 21,842 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 9,555.238 9.60 91,730 ES II - Max 7 (post 2000), Generations - Max 7 4,638.384 9.60 44,528 ----------------- ---------------- 28,716.243 $275,798 ================= ================ GCG TRUST RESEARCH Contracts in accumulation period: DVA 80 3,627.670 $15.91 $57,716 DVA 162,961.471 15.64 2,548,717 DVA Series 100 13,646.311 15.19 207,287 DVA Plus - Standard (pre February 2000) 440,910.844 15.32 6,754,754 DVA Plus - Standard (post January 2000 & post 2000) 171,543.554 15.26 2,617,755 151
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST RESEARCH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 5,913,309.306 $15.14 $89,527,503 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,475,752.225 15.07 37,309,586 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,975,285.355 14.95 74,380,516 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 838,520.000 14.88 12,477,178 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 921,348.789 14.82 13,654,389 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 6,171,512.045 14.76 91,091,518 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 792,215.685 14.70 11,645,571 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,132,959.006 14.64 31,226,520 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,110,644.796 14.51 30,625,456 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,027.237 14.45 14,844 Access - Annual Ratchet (post April 2001) 52,293.527 14.33 749,366 Access - Max 5.5 (post April 2001), Landmark - Max 7 215,282.859 14.27 3,072,086 Access - 7% Solution (post April 2001) 58,224.072 14.21 827,364 Access - Max 7 (post April 2001) 87,204.903 14.09 1,228,717 ES II - Max 7 (post 2000), Generations - Max 7 377,645.580 14.58 5,506,073 Landmark - 7% Solution 131,250.673 14.39 1,888,697 Granite PrimElite - Standard 2,602.459 15.32 39,870 Granite PrimElite - Annual Ratchet 29,978.465 15.14 453,874 Value 78,969.334 15.78 1,246,136 VA Option I 12,098.531 15.71 190,068 VA Option II 8,360.616 15.32 128,085 152
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST RESEARCH (CONTINUED) VA Option III 6,455.986 $15.13 $97,679 VA Bonus Option I 45,514.654 15.07 685,906 VA Bonus Option II 25,547.390 14.69 375,291 VA Bonus Option III 15,015.861 14.51 217,880 SmartDesign Advantage Option I 3,982.031 14.16 56,386 SmartDesign Advantage Option II 743.776 13.93 10,361 SmartDesign Advantage Option III 8,243.250 13.75 113,345 ----------------- ---------------- 28,284,678.261 $421,026,494 ================= ================ GCG TRUST RESEARCH ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,274.243 $9.72 $31,826 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 2,960.691 9.71 28,748 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 5,729.442 9.71 55,633 ES II - Max 7 (post 2000), Generations - Max 7 21,658.874 9.70 210,091 ----------------- ---------------- 33,623.250 $326,298 ================= ================ GCG TRUST SPECIAL SITUATIONS Contracts in accumulation period: DVA 2,870.905 $6.13 $17,599 DVA Plus - Standard (pre February 2000) 6,734.067 6.10 41,078 DVA Plus - Standard (post January 2000 & post 2000) 65,939.323 6.09 401,570 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 464,522.134 6.08 2,824,295 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 610,059.047 6.07 3,703,058 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 162,394.418 6.06 984,110 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 123,276.130 6.05 745,821 153
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST SPECIAL SITUATIONS (CONTINUED) DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 246,923.594 $6.04 $1,491,419 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 327,689.607 6.04 1,979,245 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 292,321.465 6.03 1,762,698 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 401,444.438 6.02 2,416,696 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 520,898.404 6.01 3,130,599 Access - Annual Ratchet (post April 2001) 13,630.437 5.99 81,646 Access - Max 5.5 (post April 2001), Landmark - Max 7 96,354.913 5.98 576,202 Access - 7% Solution (post April 2001) 7,583.310 5.97 45,272 Access - Max 7 (post April 2001) 19,023.473 5.96 113,380 ES II - Max 7 (post 2000), Generations - Max 7 170,016.196 6.01 1,021,797 Landmark - 7% Solution 70,820.281 5.99 424,213 Value 6,471.533 6.15 39,800 ----------------- --------------- 3,608,973.675 $21,800,498 ================= =============== GCG TRUST SPECIAL SITUATIONS ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,145.777 $9.63 $20,664 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 3,627.415 9.62 34,896 ----------------- --------------- 5,773.192 $55,560 ================= =============== GCG TRUST STRATEGIC EQUITY Currently payable annuity products: DVA 16,012.956 $10.19 $163,172 Contracts in accumulation period: DVA 80 11,734.623 10.34 121,336 DVA 134,063.017 10.19 1,366,102 DVA Series 100 6,136.461 9.93 60,935 154
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST STRATEGIC EQUITY (CONTINUED) DVA Plus - Standard (pre February 2000) 275,485.690 $10.01 $2,757,612 DVA Plus - Standard (post January 2000 & post 2000) 126,033.889 9.97 1,256,558 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,906,118.345 9.91 28,799,633 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,870,964.685 9.86 18,447,712 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,999,021.919 9.80 19,590,415 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 748,019.466 9.75 7,293,190 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 335,993.421 9.71 3,262,496 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,578,304.124 9.68 24,957,984 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 398,841.111 9.64 3,844,828 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,196,567.061 9.61 11,499,009 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,357,779.373 9.54 12,953,215 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 430.560 9.50 4,090 Access - Annual Ratchet (post April 2001) 22,031.797 9.43 207,760 Access - Max 5.5 (post April 2001), Landmark - Max 7 63,802.164 9.40 599,740 Access - 7% Solution (post April 2001) 20,218.871 9.36 189,249 Access - Max 7 (post April 2001) 28,983.967 9.29 269,261 ES II - Max 7 (post 2000), Generations - Max 7 179,597.574 9.57 1,718,749 Landmark - 7% Solution 24,833.591 9.47 235,174 Value 23,302.730 10.26 239,086 ---------------- ---------------- 14,324,277.395 $139,837,306 ================ ================ 155
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST STRATEGIC EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,899.546 $9.65 $47,281 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,511.374 9.64 14,570 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,318.982 9.63 12,702 ES II - Max 7 (post 2000), Generations - Max 7 314.201 9.63 3,026 ---------------- ---------------- 8,044.103 $77,579 ================ ================ GCG TRUST TOTAL RETURN Contracts in accumulation period: DVA 80 16,067.433 $20.21 $324,723 DVA 206,393.471 19.88 4,103,102 DVA Series 100 3,973.499 19.31 76,728 DVA Plus - Standard (pre February 2000) 631,444.743 19.47 12,294,229 DVA Plus - Standard (post January 2000 & post 2000) 447,612.150 19.39 8,679,200 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 9,138,044.633 19.23 175,724,598 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 4,962,122.568 19.15 95,024,647 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 5,740,869.851 18.99 109,019,118 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 859,681.681 18.91 16,256,581 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,672,476.623 18.83 31,492,735 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 8,722,390.414 18.75 163,544,820 156
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST TOTAL RETURN (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,806,440.987 $18.68 $33,744,318 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,921,172.749 18.60 72,933,813 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 4,012,552.154 18.44 73,991,462 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,957.847 18.37 366,626 Access - Annual Ratchet (post April 2001) 108,560.173 18.21 1,976,881 Access - Max 5.5 (post April 2001), Landmark - Max 7 687,305.380 18.14 12,467,720 Access - 7% Solution (post April 2001) 123,964.300 18.06 2,238,795 Access - Max 7 (post April 2001) 192,906.695 17.91 3,454,959 ES II - Max 7 (post 2000), Generations - Max 7 865,414.745 18.52 16,027,481 Landmark - 7% Solution 311,823.735 18.29 5,703,256 Granite PrimElite - Standard 3,436.014 19.47 66,899 Granite PrimElite - Annual Ratchet 24,501.483 19.23 471,164 Access One 243.000 20.72 5,035 Value 124,189.496 20.05 2,489,999 VA Option I 100,966.989 19.96 2,015,301 VA Option II 58,151.220 19.47 1,132,204 VA Option III 20,971.311 19.23 403,278 VA Bonus Option I 129,465.341 19.15 2,479,261 VA Bonus Option II 136,882.391 18.67 2,555,594 VA Bonus Option III 58,555.225 18.44 1,079,758 SmartDesign Advantage Option I 19,792.659 18.00 356,268 SmartDesign Advantage Option II 7,434.941 17.70 131,598 SmartDesign Advantage Option III 13,605.955 17.48 237,832 Rollover Choice Option I 24,144.989 20.30 490,143 Rollover Choice Option II 414.379 19.96 8,271 ---------------- ----------------- 45,173,931.224 $853,368,397 ================ ================= GCG TRUST TOTAL RETURN ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 14,499.387 $10.04 $145,574 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 19,781.090 10.04 198,602 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 42,679.276 10.03 428,073 ES II - Max 7 (post 2000), Generations - Max 7 18,244.240 10.03 182,990 ---------------- ----------------- 95,203.993 $955,239 ================ ================= 157
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VALUE EQUITY Currently payable annuity products: DVA 80 196.196 $15.72 $3,084 DVA 625.357 15.47 9,674 Contracts in accumulation period: DVA 80 14,757.269 15.72 231,984 DVA 255,627.944 15.47 3,954,565 DVA Series 100 10,613.579 15.04 159,628 DVA Plus - Standard (pre February 2000) 263,973.651 15.18 4,007,120 DVA Plus - Standard (post January 2000 & post 2000) 87,727.524 15.10 1,324,686 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 2,314,069.828 15.00 34,711,047 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,201,589.403 14.92 17,927,714 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 2,133,007.485 14.82 31,611,171 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 259,140.361 14.74 3,819,729 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 318,879.888 14.68 4,681,157 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,165,514.354 14.61 31,638,165 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 307,027.413 14.56 4,470,319 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 923,702.340 14.50 13,393,684 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 983,702.944 14.38 14,145,648 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,517.456 14.32 79,010 Access - Annual Ratchet (post April 2001) 20,452.084 14.21 290,624 Access - Max 5.5 (post April 2001), Landmark - Max 7 131,098.668 14.15 1,855,046 158
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VALUE EQUITY (CONTINUED) Access - 7% Solution (post April 2001) 19,840.272 $14.09 $279,549 Access - Max 7 (post April 2001) 48,682.166 13.98 680,577 ES II - Max 7 (post 2000), Generations - Max 7 160,511.984 14.44 2,317,793 Landmark - 7% Solution 56,537.908 14.27 806,796 Value 12,716.963 15.59 198,257 VA Option I 5,697.794 15.53 88,487 VA Option II 6,030.913 15.16 91,429 VA Option III 701.727 14.97 10,505 VA Bonus Option I 13,323.533 14.91 198,654 VA Bonus Option II 7,148.366 14.56 104,080 VA Bonus Option III 7,163.305 14.38 103,008 SmartDesign Advantage Option I 2,513.045 14.05 35,308 SmartDesign Advantage Option II 1,441.150 13.82 19,917 SmartDesign Advantage Option III 372.008 13.65 5,078 ----------------- ---------------- 11,739,904.878 $173,253,493 ================= ================ GCG TRUST VALUE EQUITY ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,330.312 $9.63 $41,701 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 4,121.280 9.62 39,647 ES II - Max 7 (post 2000), Generations - Max 7 2,676.572 9.61 25,722 ----------------- ---------------- 11,128.164 $107,070 ================= ================ GCG TRUST VAN KAMPEN GROWTH AND INCOME Currently payable annuity products: DVA 80 487.525 $19.21 $9,365 DVA 6,153.091 18.86 116,047 Contracts in accumulation period: DVA 80 12,569.800 19.21 241,466 DVA 1,174,899.843 18.86 22,158,611 DVA Series 100 41,044.682 18.25 749,065 DVA Plus - Standard (pre February 2000) 802,103.676 18.45 14,798,813 DVA Plus - Standard (post January 2000 & post 2000) 212,478.908 18.34 3,896,863 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,183,620.626 18.19 112,480,059 159
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VAN KAMPEN GROWTH AND INCOME (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,951,606.925 $18.08 $35,285,053 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 6,933,408.861 17.94 124,385,355 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 478,279.632 17.83 8,527,726 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 835,107.303 17.75 14,823,155 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 7,350,027.957 17.67 129,874,994 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 616,372.946 17.58 10,835,836 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,678,850.979 17.50 29,379,892 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,920,555.207 17.34 33,302,427 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 834.783 17.26 14,408 Access - Annual Ratchet (post April 2001) 40,928.330 17.09 699,465 Access - Max 5.5 (post April 2001), Landmark - Max 7 180,352.195 17.01 3,067,791 Access - 7% Solution (post April 2001) 38,925.362 16.93 659,006 Access - Max 7 (post April 2001) 69,527.951 16.77 1,165,984 ES II - Max 7 (post 2000), Generations - Max 7 274,359.681 17.42 4,779,346 Landmark - 7% Solution 134,276.152 17.17 2,305,522 Access One 48.000 19.76 948 Value 55,540.097 19.04 1,057,483 ----------------- ---------------- 30,992,360.512 $554,614,680 ================= ================ 160
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GCG TRUST VAN KAMPEN GROWTH AND INCOME ADVISOR Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 42,614.234 $9.79 $417,193 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,609.802 9.79 15,760 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 10,565.924 9.78 103,335 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 20,751.329 9.78 202,948 ES II - Max 7 (post 2000), Generations - Max 7 25,611.638 9.78 250,482 ----------------- --------------- 101,152.927 $989,718 ================= =============== AIM V.I. DENT DEMOGRAPHIC TRENDS Contracts in accumulation period: DVA Plus - Standard (pre February 2000) 1,885.585 $7.36 $13,878 DVA Plus - Standard (post January 2000 & post 2000) 25,365.346 7.35 186,435 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 218,093.842 7.34 1,600,809 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 226,139.250 7.34 1,659,862 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 43,073.626 7.33 315,730 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 25,792.732 7.32 188,803 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 95,004.921 7.32 695,436 161
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AIM V.I. DENT DEMOGRAPHIC TRENDS (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 94,533.265 $7.32 $691,983 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 76,298.756 7.31 557,744 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 144,579.250 7.31 1,056,874 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 237,697.824 7.30 1,735,194 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,380.753 7.29 17,356 Access - Annual Ratchet (post April 2001) 36,436.265 7.28 265,256 Access - Max 5.5 (post April 2001), Landmark - Max 7 11,617.804 7.28 84,578 Access - 7% Solution (post April 2001) 8,919.249 7.27 64,843 Access - Max 7 (post April 2001) 109,981.346 7.27 799,564 ES II - Max 7 (post 2000), Generations - Max 7 132,570.005 7.30 967,761 Landmark - 7% Solution 20,619.001 7.29 150,313 VA Option I 2,751.497 7.38 20,306 VA Option II 1,639.386 7.36 12,066 VA Bonus Option I 10,729.473 7.34 78,754 VA Bonus Option II 4,182.723 7.31 30,576 VA Bonus Option III 7,735.578 7.30 56,470 SmartDesign Advantage Option I 9,033.164 7.27 65,671 SmartDesign Advantage Option II 2,133.782 7.25 15,470 SmartDesign Advantage Option III 934.452 7.24 6,765 ----------------- -------------- 1,550,128.875 $11,338,497 ================= ============== AIM V.I. GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,399.031 $7.00 $9,793 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 6,965.519 6.98 48,619 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 984.776 6.97 6,864 VA Option I 26,221.846 7.06 185,126 VA Option II 20,010.222 7.03 140,672 VA Option III 1,160.532 7.02 8,147 VA Bonus Option I 15,898.460 7.02 111,607 VA Bonus Option II 34,050.283 6.99 238,011 162
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH (CONTINUED) VA Bonus Option III 797.868 $6.98 $5,569 SmartDesign Advantage Option I 9,991.085 6.95 69,438 SmartDesign Advantage Option II 3,408.679 6.93 23,622 SmartDesign Advantage Option III 148.669 6.92 1,029 ----------------- -------------- 121,036.970 $848,497 ================= ============== AIM V.I. CAPITAL APPRECIATION Contracts in accumulation period: Rollover Choice Option I 3,701.273 $7.40 $27,389 ----------------- -------------- 3,701.273 $27,389 ================= ============== AIM V.I. CORE EQUITY Contracts in accumulation period: Rollover Choice Option I 4,960.602 $8.26 $40,975 ----------------- -------------- 4,960.602 $40,975 ================= ============== AIM V.I. PREMIER EQUITY Contracts in accumulation period: Rollover Choice Option I 6,113.296 $6.84 $41,815 Rollover Choice Option II 5,600.805 6.82 38,197 ----------------- -------------- 11,714.101 $80,012 ================= ============== ALLIANCE BERNSTEIN VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 5,317.948 $8.58 $45,628 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 8,584.788 8.55 73,400 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,498.975 8.53 46,906 VA Option I 53,589.426 8.66 464,084 VA Option II 41,567.535 8.62 358,312 VA Option III 16,435.620 8.60 141,346 VA Bonus Option I 69,917.676 8.60 601,292 VA Bonus Option II 71,475.693 8.56 611,832 VA Bonus Option III 17,783.469 8.54 151,871 SmartDesign Advantage Option I 12,252.266 8.50 104,144 SmartDesign Advantage Option II 6,907.718 8.48 58,577 SmartDesign Advantage Option III 6,158.098 8.46 52,098 ----------------- -------------- 315,489.212 $2,709,490 ================= ============== 163
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 11,011.021 $7.33 $80,711 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 5,073.118 7.31 37,084 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,048.890 7.29 14,936 VA Option I 111,625.699 7.40 826,030 VA Option II 107,568.702 7.37 792,781 VA Option III 37,970.848 7.35 279,086 VA Bonus Option I 187,892.497 7.35 1,381,010 VA Bonus Option II 110,199.338 7.32 806,659 VA Bonus Option III 49,729.010 7.30 363,022 SmartDesign Advantage Option I 7,581.492 7.27 55,117 SmartDesign Advantage Option II 11,489.341 7.25 83,298 SmartDesign Advantage Option III 1,624.503 7.23 11,745 ---------------- ------------- 643,814.459 $4,731,479 ================ ============= ALLIANCE PREMIER GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 18,699.611 $6.50 $121,547 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 4,096.233 6.48 26,544 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 242.415 6.47 1,568 VA Option I 41,282.713 6.56 270,815 VA Option II 87,298.365 6.54 570,931 VA Option III 21,482.259 6.52 140,064 VA Bonus Option I 48,076.653 6.52 313,460 VA Bonus Option II 63,675.099 6.49 413,251 VA Bonus Option III 13,118.794 6.47 84,879 SmartDesign Advantage Option I 10,347.731 6.44 66,639 SmartDesign Advantage Option II 10,463.152 6.43 67,278 SmartDesign Advantage Option III 2,733.252 6.41 17,520 ---------------- ------------- 321,516.277 $2,094,496 ================ ============= 164
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH Contracts in accumulation period: DVA 6,391.315 $6.41 $40,968 DVA Plus - Standard (pre February 2000) 9,787.230 6.39 62,540 DVA Plus - Standard (post January 2000 & post 2000) 14,326.050 6.38 91,400 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 523,176.282 6.37 3,332,633 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 534,217.197 6.37 3,402,964 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 219,814.733 6.36 1,398,022 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 69,147.668 6.35 439,088 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 202,568.992 6.35 1,286,313 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 256,320.522 6.34 1,625,072 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 138,234.806 6.34 876,409 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 244,585.622 6.33 1,548,227 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 473,546.962 6.33 2,997,552 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 7,612.918 6.32 48,114 Access - Annual Ratchet (post April 2001) 4,842.214 6.31 30,554 Access - Max 5.5 (post April 2001), Landmark - Max 7 107,164.703 6.31 676,209 Access - 7% Solution (post April 2001) 72,400.853 6.30 456,125 Access - Max 7 (post April 2001) 13,477.384 6.29 84,773 ES II - Max 7 (post 2000), Generations - Max 7 147,714.687 6.33 935,034 Landmark - 7% Solution 72,837.366 6.32 460,332 Value 16,144.991 6.42 103,651 VA Option I 117,835.906 6.42 756,507 165
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH (CONTINUED) VA Option II 41,737.349 $6.39 $266,702 VA Option III 15,098.206 6.37 96,176 VA Bonus Option I 156,999.146 6.37 1,000,085 VA Bonus Option II 74,614.341 6.34 473,055 VA Bonus Option III 53,634.764 6.32 338,972 SmartDesign Advantage Option I 14,612.297 6.30 92,057 SmartDesign Advantage Option II 8,816.847 6.28 55,370 SmartDesign Advantage Option III 2,814.395 6.26 17,618 Rollover Choice Option I 30,532.901 6.43 196,327 Rollover Choice Option II 3,701.211 6.42 23,762 Rollover Choice Option III 607.274 6.40 3,887 ---------------- --------------- 3,655,317.132 $23,216,498 ================ =============== FIDELITY(R) VIP EQUITY-INCOME Contracts in accumulation period: DVA 4,246.161 $7.88 $33,460 DVA Series 100 525.907 7.84 4,123 DVA Plus - Standard (pre February 2000) 5,651.143 7.85 44,361 DVA Plus - Standard (post January 2000 & post 2000) 37,470.212 7.85 294,141 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 478,394.663 7.83 3,745,830 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 321,871.933 7.83 2,520,257 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 185,664.648 7.82 1,451,898 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 70,101.597 7.81 547,493 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 177,882.505 7.80 1,387,484 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 338,456.229 7.80 2,639,959 166
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP EQUITY-INCOME (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 139,297.067 $7.79 $1,085,124 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 178,751.984 7.79 1,392,478 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 250,947.059 7.78 1,952,368 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 9,459.360 7.77 73,499 Access - Annual Ratchet (post April 2001) 18,935.799 7.76 146,942 Access - Max 5.5 (post April 2001), Landmark - Max 7 54,903.954 7.75 425,506 Access - 7% Solution (post April 2001) 46,318.279 7.75 358,967 Access - Max 7 (post April 2001) 7,498.006 7.74 58,035 ES II - Max 7 (post 2000), Generations - Max 7 70,753.511 7.78 550,462 Landmark - 7% Solution 19,711.625 7.76 152,962 Value 3,346.119 7.89 26,401 VA Option I 137,710.507 7.89 1,086,536 VA Option II 67,873.888 7.85 532,810 VA Option III 26,357.099 7.83 206,376 VA Bonus Option I 178,215.219 7.83 1,395,425 VA Bonus Option II 140,603.473 7.79 1,095,301 VA Bonus Option III 24,656.472 7.78 191,827 SmartDesign Advantage Option I 15,527.727 7.74 120,185 SmartDesign Advantage Option II 10,722.407 7.72 82,777 SmartDesign Advantage Option III 7,831.391 7.70 60,302 Rollover Choice Option I 21,033.949 7.91 166,379 Rollover Choice Option II 2,414.475 7.89 19,050 Rollover Choice Option III 748.840 7.87 5,893 ---------------- --------------- 3,053,883.208 $23,854,611 ================ =============== FIDELITY(R) VIP CONTRAFUND(R) Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 10,193.484 $8.63 $87,970 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 8,870.371 8.60 76,285 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,392.267 8.58 166,386 VA Option I 86,387.123 8.71 752,432 VA Option II 77,060.412 8.67 668,114 VA Option III 17,280.541 8.65 149,477 VA Bonus Option I 141,706.160 8.64 1,224,341 VA Bonus Option II 80,927.058 8.61 696,782 167
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) (CONTINUED) VA Bonus Option III 26,329.715 $8.59 $226,172 SmartDesign Advantage Option I 5,170.226 8.55 44,205 SmartDesign Advantage Option II 11,635.946 8.52 99,138 SmartDesign Advantage Option III 5,478.254 8.50 46,565 Rollover Choice Option I 18,394.766 8.73 160,586 Rollover Choice Option II 4,124.316 8.71 35,923 Rollover Choice Option III 537.961 8.69 4,675 --------------- -------------- 513,488.600 $4,439,051 =============== ============== FIDELITY(R) VIP OVERSEAS Contracts in accumulation period: Rollover Choice Option I 1,171.175 $7.89 $9,241 --------------- -------------- 1,171.175 $9,241 =============== ============== FRANKLIN SMALL CAP VALUE SECURITIES Contracts in accumulation period: Rollover Choice Option I 1,802.105 $8.99 $16,201 Rollover Choice Option II 137.390 8.97 1,232 --------------- -------------- 1,939.495 $17,433 =============== ============== GREENWICH APPRECIATION Contracts in accumulation period: Granite PrimElite - Standard 410.469 $14.02 $5,755 Granite PrimElite - Annual Ratchet 42,037.067 13.88 583,474 --------------- -------------- 42,447.536 $589,229 =============== ============== GALAXY VIP ASSET ALLOCATION Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 14,470.820 $8.15 $117,937 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 41,973.587 8.14 341,665 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 4,092.860 8.11 33,193 168
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP ASSET ALLOCATION (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 7,686.299 $8.10 $62,259 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 3,094.826 8.07 24,975 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 6,392.631 8.05 51,461 ---------------- --------------- 77,711.023 $631,490 ================ =============== GALAXY VIP EQUITY Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,146.836 $6.57 $40,385 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 41,997.580 6.56 275,504 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 9,438.274 6.54 61,726 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 2,533.499 6.53 16,544 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,842.961 6.50 18,479 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 9,491.052 6.48 61,502 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 2,067.330 6.46 13,355 ---------------- --------------- 74,517.532 $487,495 ================ =============== 169
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,973.536 $7.56 $37,600 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 6,935.812 7.55 52,365 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 941.925 7.51 7,074 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 2,055.178 7.49 15,393 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 778.183 7.46 5,805 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 520.260 7.44 3,871 ---------------- --------------- 16,204.894 $122,108 ================ =============== GALAXY VIP HIGH QUALITY BOND Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 3,333.820 $12.74 $42,473 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,441.177 12.72 31,052 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,264.887 12.65 16,001 170
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- GALAXY VIP HIGH QUALITY BOND (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 261.886 $12.61 $3,302 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,995.152 12.57 37,649 ---------------- --------------- 10,296.922 $130,477 ================ =============== GALAXY VIP SMALL COMPANY GROWTH Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,744.000 $8.69 $15,155 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,318.134 8.67 11,428 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 1,508.000 8.65 13,044 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 506.975 8.63 4,375 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,382.134 8.57 11,845 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 98.104 8.55 839 ---------------- --------------- 6,557.347 $56,686 ================ =============== ING GET FUND - SERIES N Contracts in accumulation period: VA Option I 390,804.171 $10.10 $3,947,122 VA Option II 213,031.411 10.05 2,140,966 VA Option III 117,577.827 10.03 1,179,306 VA Bonus Option I 972,908.364 10.02 9,748,542 VA Bonus Option II 682,003.499 9.98 6,806,395 VA Bonus Option III 485,961.261 9.96 4,840,174 ---------------- --------------- 2,862,286.533 $28,662,505 ================ =============== 171
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES P Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 67,854.231 $9.93 $673,793 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 10,497.941 9.91 104,035 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,684.163 9.89 36,436 VA Option I 1,705,435.036 10.02 17,088,459 VA Option II 972,549.749 9.98 9,706,046 VA Option III 401,541.204 9.96 3,999,350 VA Bonus Option I 5,315,976.104 9.95 52,893,962 VA Bonus Option II 3,474,689.314 9.91 34,434,171 VA Bonus Option III 2,205,103.224 9.89 21,808,471 SmartDesign Advantage Option I 108,591.586 9.86 1,070,713 SmartDesign Advantage Option II 35,661.831 9.83 350,556 SmartDesign Advantage Option III 26,860.854 9.81 263,505 ----------------- ---------------- 14,328,445.237 $142,429,497 ================= ================ ING GET FUND - SERIES Q Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 562,383.289 $10.03 $5,640,704 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 284,409.580 10.01 2,846,940 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 83,909.189 9.99 838,253 VA Option I 1,999,208.942 10.10 20,192,010 VA Option II 1,409,733.467 10.07 14,196,016 VA Option III 491,168.651 10.05 4,936,245 VA Bonus Option I 4,783,644.544 10.04 48,027,791 VA Bonus Option II 3,845,316.589 10.01 38,491,619 VA Bonus Option III 1,887,729.911 10.00 18,877,299 SmartDesign Advantage Option I 1,028,249.267 9.97 10,251,645 SmartDesign Advantage Option II 217,938.548 9.94 2,166,309 SmartDesign Advantage Option III 253,781.731 9.93 2,520,053 Rollover Choice Option I 2,541.246 10.12 25,717 Rollover Choice Option II 4,941.125 10.10 49,905 ----------------- ---------------- 16,854,956.079 $169,060,506 ================= ================ 172
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES R Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,074,925.572 $10.09 $10,845,999 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 257,403.873 10.07 2,592,057 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 115,167.896 10.06 1,158,589 VA Option I 2,104,589.356 10.14 21,340,536 VA Option II 988,297.070 10.12 10,001,566 VA Option III 506,820.458 10.10 5,118,887 VA Bonus Option I 4,259,757.948 10.10 43,023,555 VA Bonus Option II 3,262,756.657 10.08 32,888,587 VA Bonus Option III 1,891,866.395 10.06 19,032,176 SmartDesign Advantage Option I 1,141,597.398 10.04 11,461,638 SmartDesign Advantage Option II 716,661.831 10.02 7,180,952 SmartDesign Advantage Option III 566,849.087 10.01 5,674,159 Rollover Choice Option I 19,740.797 10.16 200,566 Rollover Choice Option II 4,164.678 10.14 42,230 ----------------- ---------------- 16,910,599.016 $170,561,497 ================= ================ ING GET FUND - SERIES S Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,272,002.001 $10.03 $12,758,180 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 714,136.233 10.02 7,155,645 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 253,670.431 10.01 2,539,241 VA Option I 2,645,718.489 10.07 26,642,385 VA Option II 1,006,108.528 10.05 10,111,391 VA Option III 531,316.937 10.04 5,334,422 VA Bonus Option I 5,903,407.361 10.04 59,270,210 VA Bonus Option II 3,536,752.857 10.02 35,438,264 VA Bonus Option III 2,276,351.650 10.01 22,786,280 SmartDesign Advantage Option I 1,993,960.945 10.00 19,939,609 SmartDesign Advantage Option II 1,229,819.186 9.99 12,285,894 SmartDesign Advantage Option III 467,734.302 9.98 4,667,988 Rollover Choice Option I 31,718.983 10.08 319,727 Rollover Choice Option II 4,790.846 10.07 48,244 ----------------- ---------------- 21,867,488.749 $219,297,480 ================= ================ 173
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING GET FUND - SERIES T Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 50,400.668 $10.08 $508,039 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,558,991.778 10.07 15,699,047 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 19,504.482 10.07 196,410 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 171,909.156 10.06 1,729,406 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 508,430.836 10.06 5,114,814 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 402,293.548 10.06 4,047,073 ES II - Max 7 (post 2000), Generations - Max 7 95,839.486 10.06 964,145 VA Option I 2,265,324.445 10.09 22,857,124 VA Option II 986,184.393 10.08 9,940,739 VA Option III 395,886.131 10.08 3,990,532 VA Bonus Option I 6,903,091.797 10.07 69,514,134 VA Bonus Option II 3,462,362.180 10.06 34,831,364 VA Bonus Option III 2,223,311.868 10.06 22,366,517 SmartDesign Advantage Option I 2,313,192.394 10.05 23,247,584 SmartDesign Advantage Option II 1,164,309.907 10.04 11,689,671 SmartDesign Advantage Option III 1,014,350.218 10.04 10,184,076 Rollover Choice Option I 105,907.907 10.10 1,069,670 Rollover Choice Option II 1,397.340 10.09 14,099 ----------------- ---------------- 23,642,688.533 $237,964,444 ================= ================ ING GET FUND - SERIES U Contracts in accumulation period: Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,187.025 $10.00 $11,870 VA Option I 1,571.485 10.00 15,715 VA Option II 6,507.823 10.00 65,078 VA Option III 1,409.047 10.00 14,090 VA Bonus Option I 36,166.923 10.00 361,669 VA Bonus Option II 8,169.053 10.00 81,691 SmartDesign Advantage Option I 3,233.024 9.99 32,298 Rollover Choice Option I 46,529.254 10.00 465,293 ----------------- ---------------- 104,773.634 $1,047,704 ================= ================ 174
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING ALGER GROWTH Contracts in accumulation period: Rollover Choice Option I 5,955.720 $6.56 $39,070 ----------------- --------------- 5,955.720 $39,070 ================= =============== ING AMERICAN CENTURY SMALL CAP VALUE Contracts in accumulation period: Rollover Choice Option II 215.415 $8.10 $1,745 ----------------- --------------- 215.415 $1,745 ================= =============== ING J.P. MORGAN MID CAP VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,313.035 $9.15 $12,014 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 105.865 9.14 968 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 279.120 9.13 2,548 VA Option I 7,703.109 9.19 70,792 VA Option II 325.073 9.17 2,981 VA Option III 871.507 9.16 7,983 VA Bonus Option I 12,516.020 9.16 114,647 VA Bonus Option II 6,147.437 9.14 56,188 VA Bonus Option III 2,029.335 9.13 18,528 SmartDesign Advantage Option I 525.395 9.11 4,786 SmartDesign Advantage Option II 500.283 9.10 4,553 SmartDesign Advantage Option III 525.629 9.09 4,778 ----------------- --------------- 32,841.808 $300,766 ================= =============== ING MFS(R) CAPITAL OPPORTUNITIES (INITIAL CLASS) Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 9,202.920 $6.12 $56,322 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,495.904 6.10 9,125 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,820.488 6.08 41,469 VA Option I 24,402.739 6.18 150,809 VA Option II 24,352.603 6.15 149,769 VA Option III 9,183.824 6.13 56,297 VA Bonus Option I 51,742.510 6.13 317,182 175
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING MFS(R) CAPITAL OPPORTUNITIES (INITIAL CLASS) (CONTINUED) VA Bonus Option II 45,652.230 $6.10 $278,479 VA Bonus Option III 27,827.914 6.09 169,472 SmartDesign Advantage Option I 7,426.711 6.06 45,006 SmartDesign Advantage Option II 949.187 6.04 5,733 --------------- -------------- 209,057.030 $1,279,663 =============== ============== ING MFS(R) CAPITAL OPPORTUNITIES (SERVICE CLASS) Contracts in accumulation period: Rollover Choice Option I 10,569.482 $6.85 $72,401 --------------- -------------- 10,569.482 $72,401 =============== ============== ING MFS(R) GLOBAL GROWTH Contracts in accumulation period: Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 110.304 $8.29 $914 VA Option I 1,482.246 8.34 12,362 VA Option II 1,343.372 8.32 11,177 VA Bonus Option I 4,797.670 8.31 39,869 VA Bonus Option II 295.240 8.29 2,448 VA Bonus Option III 192.981 8.28 1,598 SmartDesign Advantage Option I 595.582 8.27 4,925 Rollover Choice Option I 222.879 8.35 1,861 --------------- -------------- 9,040.274 $75,154 =============== ============== ING OPCAP BALANCED VALUE Contracts in accumulation period: Rollover Choice Option I 16,208.427 $7.80 $126,426 --------------- -------------- 16,208.427 $126,426 =============== ============== ING PIMCO TOTAL RETURN Contracts in accumulation period: Rollover Choice Option I 55,182.425 $10.75 $593,211 --------------- -------------- 55,182.425 $593,211 =============== ============== ING SALOMON BROS. CAPITAL Contracts in accumulation period: Rollover Choice Option I 1,231.608 $7.41 $9,126 --------------- -------------- 1,231.608 $9,126 =============== ============== ING SALOMON BROS. INVESTORS VALUE Contracts in accumulation period: Rollover Choice Option I 487.219 $7.61 $3,708 --------------- -------------- 487.219 $3,708 =============== ============== 176
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING SCUDDER INTERNATIONAL GROWTH Contracts in accumulation period: Rollover Choice Option I 534.407 $8.14 $4,350 Rollover Choice Option II 385.164 8.13 3,131 --------------- ---------------- 919.571 $7,481 =============== ================ ING T. ROWE PRICE GROWTH EQUITY Rollover Choice Option I 18,694.132 $7.52 $140,580 Rollover Choice Option II 390.902 7.51 2,936 --------------- ---------------- 19,085.034 $143,516 =============== ================ ING UBS TACTICAL ASSET ALLOCATION Contracts in accumulation period: Rollover Choice Option I 297.448 $7.54 $2,243 --------------- ---------------- 297.448 $2,243 =============== ================ ING VAN KAMPEN COMSTOCK Contracts in accumulation period: DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 28,765.909 $8.30 $238,757 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,563.257 8.30 21,275 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,117.380 8.29 34,133 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 283.320 8.29 2,349 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 29,823.131 8.28 246,936 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,649.302 8.28 13,656 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,188.813 8.27 34,641 ES II - Max 7 (post 2000), Generations - Max 7 105,532.227 8.27 872,752 VA Option I 6,159.801 8.32 51,250 VA Option II 4,430.488 8.31 36,817 VA Option III 109.415 8.30 908 VA Bonus Option I 5,134.250 8.30 42,614 VA Bonus Option II 6,396.200 8.28 52,961 VA Bonus Option III 2,101.826 8.27 17,382 177
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN COMSTOCK (CONTINUED) SmartDesign Advantage Option I 1,514.971 $8.25 $12,499 SmartDesign Advantage Option II 2,191.557 8.24 18,058 Rollover Choice Option I 4,737.926 8.34 39,514 ----------------- --------------- 209,699.773 $1,736,502 ================= =============== ING VP WORLDWIDE GROWTH Contracts in accumulation period: DVA 5,517.312 $5.26 $29,021 DVA Plus - Standard (pre February 2000) 12,358.456 5.23 64,635 DVA Plus - Standard (post January 2000 & post 2000) 49,480.801 5.22 258,290 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 467,246.705 5.21 2,434,355 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 859,281.375 5.20 4,468,263 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 142,057.864 5.19 737,280 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 116,508.310 5.18 603,513 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 322,466.194 5.17 1,667,150 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 361,646.549 5.16 1,866,096 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 349,870.710 5.16 1,805,333 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 598,427.686 5.15 3,081,903 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,083,707.075 5.14 5,570,254 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,003.284 5.13 5,147 Access - Annual Ratchet (post April 2001) 39,020.638 5.12 199,786 178
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP WORLDWIDE GROWTH (CONTINUED) Access - Max 5.5 (post April 2001), Landmark - Max 7 138,853.238 $5.11 $709,540 Access - 7% Solution (post April 2001) 57,393.340 5.10 292,706 Access - Max 7 (post April 2001) 78,477.936 5.09 399,453 ES II - Max 7 (post 2000), Generations - Max 7 382,518.737 5.14 1,966,146 Landmark - 7% Solution 100,549.031 5.12 514,811 Value 31,341.713 5.28 165,484 VA Option I 13,906.179 5.27 73,286 VA Option II 22,034.369 5.23 115,240 VA Option III 3,808.449 5.21 19,842 VA Bonus Option I 25,910.251 5.20 134,733 VA Bonus Option II 20,896.200 5.16 107,824 VA Bonus Option III 6,582.348 5.14 33,833 SmartDesign Advantage Option I 5,942.421 5.10 30,306 SmartDesign Advantage Option II 819.595 5.07 4,155 SmartDesign Advantage Option III 1,408.659 5.05 7,114 ----------------- --------------- 5,299,035.425 $27,365,499 ================= =============== ING VP BOND Contracts in accumulation period: DVA 80 5,835.705 $10.69 $62,384 DVA 1,384.830 10.67 14,776 DVA Series 100 460.852 10.65 4,908 DVA Plus - Standard (pre February 2000) 13,699.520 10.65 145,900 DVA Plus - Standard (post January 2000 & post 2000) 65,448.385 10.65 697,025 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 719,278.721 10.64 7,653,126 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 665,314.190 10.64 7,078,943 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 290,354.137 10.63 3,086,464 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 48,128.304 10.63 511,604 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 88,274.683 10.63 938,360 179
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP BOND (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 707,083.140 $10.62 $7,509,223 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 218,866.859 10.62 2,324,366 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 616,916.853 10.62 6,551,657 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 456,890.838 10.61 4,847,612 Access - Annual Ratchet (post April 2001) 9,276.800 10.60 98,334 Access - Max 5.5 (post April 2001), Landmark - Max 7 20,543.142 10.59 217,552 Access - 7% Solution (post April 2001) 45,161.920 10.59 478,265 Access - Max 7 (post April 2001) 93,174.370 10.58 985,785 ES II - Max 7 (post 2000), Generations - Max 7 564,471.057 10.61 5,989,038 Landmark - 7% Solution 16,610.577 10.60 176,072 Value 21,077.526 10.68 225,108 ---------------- -------------- 4,668,252.409 $49,596,502 ================ ============== ING VP GROWTH Contracts in accumulation period: Rollover Choice Option I 6,569.234 $6.94 $45,590 ---------------- -------------- 6,569.234 $45,590 ================ ============== ING VP INDEX PLUS LARGECAP Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 12,557.733 $7.21 $90,541 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 6,179.958 7.19 44,434 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,963.889 7.18 28,461 VA Option I 141,983.350 7.28 1,033,639 VA Option II 46,368.062 7.25 336,168 VA Option III 34,433.300 7.24 249,297 VA Bonus Option I 224,198.353 7.23 1,620,954 VA Bonus Option II 35,518.020 7.20 255,730 VA Bonus Option III 26,792.477 7.18 192,370 SmartDesign Advantage Option I 10,195.872 7.15 72,900 SmartDesign Advantage Option II 8,441.439 7.13 60,187 180
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS LARGECAP (CONTINUED) SmartDesign Advantage Option III 8,987.585 $7.11 $63,902 Rollover Choice Option I 71,089.664 7.31 519,665 Rollover Choice Option II 2,369.346 7.28 17,249 Rollover Choice Option III 564.067 7.27 4,101 ---------------- -------------- 633,643.115 $4,589,598 ================ ============== ING VP INDEX PLUS MIDCAP Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 13,930.296 $8.53 $118,825 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 7,367.210 8.51 62,695 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 19,361.288 8.49 164,377 VA Option I 133,786.073 8.61 1,151,898 VA Option II 61,372.138 8.58 526,573 VA Option III 19,210.554 8.56 164,442 VA Bonus Option I 177,302.397 8.55 1,515,935 VA Bonus Option II 94,503.966 8.51 804,229 VA Bonus Option III 97,939.999 8.49 831,511 SmartDesign Advantage Option I 11,177.803 8.46 94,564 SmartDesign Advantage Option II 10,167.267 8.43 85,710 SmartDesign Advantage Option III 17,384.130 8.41 146,201 Rollover Choice Option I 22,538.459 8.64 194,732 Rollover Choice Option II 5,073.425 8.61 43,682 Rollover Choice Option III 480.800 8.59 4,130 ---------------- -------------- 691,595.805 $5,909,504 ================ ============== ING VP INDEX PLUS SMALLCAP Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 24,464.385 $8.59 $210,149 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,622.813 8.57 31,048 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,254.460 8.55 27,826 VA Option I 97,303.653 8.67 843,623 VA Option II 45,701.551 8.64 394,861 VA Option III 8,401.252 8.62 72,419 VA Bonus Option I 119,426.433 8.61 1,028,262 VA Bonus Option II 50,587.854 8.57 433,538 181
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS SMALLCAP (CONTINUED) VA Bonus Option III 69,820.561 $8.55 $596,966 SmartDesign Advantage Option I 5,086.437 8.52 43,336 SmartDesign Advantage Option II 9,017.544 8.49 76,559 SmartDesign Advantage Option III 9,049.582 8.47 76,650 Rollover Choice Option I 18,191.748 8.70 158,268 Rollover Choice Option II 1,382.428 8.68 11,999 ---------------- -------------- 465,310.701 $4,005,504 ================ ============== ING VP SMALL COMPANY Contracts in accumulation period: Rollover Choice Option I 16,504.399 $7.56 $124,773 Rollover Choice Option II 4,207.514 7.54 31,725 ---------------- -------------- 20,711.913 $156,498 ================ ============== ING VP VALUE OPPORTUNITY Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,312.844 $6.55 $8,599 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,588.561 6.53 10,373 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,346.537 6.52 15,299 VA Option I 31,204.909 6.62 206,576 VA Option II 13,742.756 6.59 90,565 VA Option III 4,227.538 6.57 27,775 VA Bonus Option I 32,953.774 6.57 216,506 VA Bonus Option II 28,741.641 6.54 187,970 VA Bonus Option III 7,083.223 6.52 46,183 SmartDesign Advantage Option I 17,731.744 6.49 115,079 SmartDesign Advantage Option II 1,235.020 6.47 7,991 SmartDesign Advantage Option III 14,687.082 6.46 94,879 Rollover Choice Option I 8,766.617 6.63 58,123 ---------------- -------------- 165,622.247 $1,085,918 ================ ============== ING VP CONVERTIBLE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,417.757 $9.61 $13,625 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 571.190 9.58 5,472 182
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP CONVERTIBLE (CONTINUED) Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,962.680 $9.56 $28,323 VA Option I 27,864.868 9.70 270,289 VA Option II 23,212.677 9.66 224,234 VA Bonus Option I 24,891.586 9.63 239,706 VA Bonus Option II 16,097.635 9.59 154,376 VA Bonus Option III 1,293.425 9.57 12,378 SmartDesign Advantage Option I 3,125.116 9.52 29,751 SmartDesign Advantage Option II 5,397.937 9.50 51,280 SmartDesign Advantage Option III 522.665 9.48 4,955 ----------------- -------------- 107,357.536 $1,034,389 ================= ============== ING VP GROWTH OPPORTUNITIES Contracts in accumulation period: DVA 508.000 $5.30 $2,692 DVA Plus - Standard (pre February 2000) 589.526 5.27 3,107 DVA Plus - Standard (post January 2000 & post 2000) 11,903.518 5.27 62,732 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 143,306.638 5.26 753,793 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 297,926.064 5.26 1,567,091 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 134,511.899 5.25 706,187 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 30,250.239 5.24 158,511 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 157,970.166 5.24 827,764 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 151,542.584 5.23 792,568 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 149,494.282 5.23 781,855 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 178,992.222 5.23 936,129 183
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP GROWTH OPPORTUNITIES (CONTINUED) Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 355,700.276 $5.22 $1,856,755 Access - Annual Ratchet (post April 2001) 4,918.441 5.20 25,576 Access - Max 5.5 (post April 2001), Landmark - Max 7 68,490.561 5.20 356,151 Access - 7% Solution (post April 2001) 11,587.039 5.19 60,137 Access - Max 7 (post April 2001) 49,552.666 5.19 257,178 ES II - Max 7 (post 2000), Generations - Max 7 109,759.285 5.22 572,943 Landmark - 7% Solution 34,246.496 5.21 178,424 Value 1,365.563 5.31 7,251 Rollover Choice Option I 2,754.175 5.32 14,652 ---------------- -------------- 1,895,369.640 $9,921,496 ================ ============== ING VP INTERNATIONAL VALUE Contracts in accumulation period: Rollover Choice Option I 4,649.081 $8.47 $39,378 Rollover Choice Option II 288.667 8.45 2,439 ---------------- -------------- 4,937.748 $41,817 ================ ============== ING VP LARGE COMPANY VALUE Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 6,796.009 $7.95 $54,028 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 888.555 7.93 7,046 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,895.920 7.91 22,907 VA Option I 31,277.430 8.03 251,158 VA Option II 18,070.271 7.99 144,381 VA Option III 14,141.043 7.98 112,846 VA Bonus Option I 26,066.797 7.97 207,752 VA Bonus Option II 10,660.289 7.93 84,536 VA Bonus Option III 4,544.920 7.92 35,996 SmartDesign Advantage Option I 3,927.934 7.88 30,952 SmartDesign Advantage Option II 80.251 7.86 631 SmartDesign Advantage Option III 727.650 7.84 5,705 ---------------- -------------- 120,077.069 $957,938 ================ ============== ING VP LARGECAP GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,324.788 $6.15 $26,597 184
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP LARGECAP GROWTH (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 148.376 $6.13 $910 VA Option I 17,334.479 6.21 107,647 VA Option II 31,441.028 6.18 194,306 VA Option III 7,410.080 6.17 45,720 VA Bonus Option I 41,753.715 6.16 257,203 VA Bonus Option II 42,851.444 6.14 263,108 VA Bonus Option III 11,187.257 6.12 68,466 SmartDesign Advantage Option I 4,073.044 6.10 24,846 SmartDesign Advantage Option II 1,059.501 6.08 6,442 SmartDesign Advantage Option III 1,693.678 6.06 10,264 ---------------- -------------- 163,277.390 $1,005,509 ================ ============== ING VP MAGNACAP Contracts in accumulation period: DVA 6,555.686 $7.15 $46,873 DVA Plus - Standard (pre February 2000) 6,549.431 7.12 46,632 DVA Plus - Standard (post January 2000 & post 2000) 10,551.443 7.11 75,021 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 211,733.236 7.10 1,503,306 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 307,643.277 7.10 2,184,267 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 20,061.852 7.08 142,038 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 17,210.413 7.08 121,850 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 153,013.266 7.07 1,081,804 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 125,575.174 7.07 887,816 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 102,496.200 7.06 723,623 185
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP MAGNACAP (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 190,988.256 $7.05 $1,346,467 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 295,511.233 7.04 2,080,399 Access - Annual Ratchet (post April 2001) 18,131.585 7.02 127,284 Access - Max 5.5 (post April 2001), Landmark - Max 7 41,228.581 7.02 289,425 Access - 7% Solution (post April 2001) 12,375.694 7.01 86,754 Access - Max 7 (post April 2001) 27,970.406 7.00 195,793 ES II - Max 7 (post 2000), Generations - Max 7 108,901.970 7.05 767,759 Landmark - 7% Solution 31,708.981 7.03 222,914 Value 4,070.367 7.16 29,144 VA Option I 20,708.864 7.16 148,275 VA Option II 284.124 7.12 2,023 VA Option III 630.457 7.10 4,476 VA Bonus Option I 19,500.998 7.10 138,457 VA Bonus Option II 6,930.236 7.06 48,927 VA Bonus Option III 3,957.580 7.04 27,861 SmartDesign Advantage Option I 1,471.448 7.01 10,315 ----------------- --------------- 1,745,760.759 $12,339,503 ================= =============== ING VP MIDCAP OPPORTUNITIES Contracts in accumulation period: Rollover Choice Option I 1,699.815 $7.24 $12,307 ----------------- --------------- 1,699.815 $12,307 ================= =============== ING VP SMALLCAP OPPORTUNITIES Contracts in accumulation period: DVA 7,081.683 $4.65 $32,930 DVA Plus - Standard (pre February 2000) 4,958.507 4.63 22,958 DVA Plus - Standard (post January 2000 & post 2000) 59,275.642 4.63 274,446 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 774,556.649 4.62 3,578,452 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,042,745.581 4.62 4,817,485 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 139,362.310 4.61 642,460 186
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- ING VP SMALLCAP OPPORTUNITIES (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 48,062.812 $4.61 $221,570 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 563,708.902 4.60 2,593,061 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 483,572.111 4.60 2,224,432 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 454,391.883 4.59 2,085,659 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 696,664.441 4.59 3,197,690 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,196,796.823 4.58 5,481,329 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 345.077 4.58 1,580 Access - Annual Ratchet (post April 2001) 54,432.709 4.57 248,757 Access - Max 5.5 (post April 2001), Landmark - Max 7 249,713.741 4.57 1,141,192 Access - 7% Solution (post April 2001) 46,045.780 4.56 209,969 Access - Max 7 (post April 2001) 177,134.824 4.55 805,963 ES II - Max 7 (post 2000), Generations - Max 7 374,677.088 4.59 1,719,768 Landmark - 7% Solution 117,675.900 4.57 537,779 Value 58,728.870 4.66 273,677 Rollover Choice Option I 3,071.070 4.67 14,342 ----------------- --------------- 6,553,002.403 $30,125,499 ================= =============== INVESCO VIF - FINANCIAL SERVICES Contracts in accumulation period: DVA 406.061 $7.90 $3,208 DVA Series 100 670.845 7.86 5,273 DVA Plus - Standard (pre February 2000) 5,407.333 7.88 42,610 DVA Plus - Standard (post January 2000 & post 2000) 19,155.514 7.87 150,754 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 584,089.237 7.86 4,590,941 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 491,868.834 7.85 3,861,170 187
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - FINANCIAL SERVICES (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 117,511.348 $7.84 $921,289 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 44,675.520 7.83 349,809 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 200,145.811 7.83 1,567,142 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 182,155.631 7.82 1,424,457 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 110,702.021 7.82 865,690 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 284,060.139 7.81 2,218,510 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 407,036.399 7.80 3,174,884 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 667.125 7.79 5,197 Access - Annual Ratchet (post April 2001) 36,848.113 7.78 286,678 Access - Max 5.5 (post April 2001), Landmark - Max 7 84,291.461 7.78 655,788 Access - 7% Solution (post April 2001) 8,073.622 7.77 62,732 Access - Max 7 (post April 2001) 32,860.169 7.76 254,995 ES II - Max 7 (post 2000), Generations - Max 7 91,597.737 7.81 715,378 Landmark - 7% Solution 47,920.623 7.79 373,302 Value 5,012.313 7.92 39,698 VA Option I 28,312.555 7.91 223,952 VA Option II 17,476.529 7.88 137,715 VA Option III 2,929.158 7.86 23,023 VA Bonus Option I 40,079.602 7.85 314,625 VA Bonus Option II 39,578.360 7.82 309,503 VA Bonus Option III 41,939.098 7.80 327,125 SmartDesign Advantage Option I 786.478 7.77 6,111 SmartDesign Advantage Option II 3,904.827 7.74 30,223 SmartDesign Advantage Option III 535.466 7.73 4,139 ----------------- --------------- 2,930,697.929 $22,945,921 ================= =============== INVESCO VIF - HEALTH SCIENCES Contracts in accumulation period: DVA 80 9,089.241 $7.72 $70,169 188
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - HEALTH SCIENCES (CONTINUED) DVA 540.527 $7.70 $4,162 DVA Series 100 541.402 7.66 4,147 DVA Plus - Standard (pre February 2000) 14,310.616 7.67 109,762 DVA Plus - Standard (post January 2000 & post 2000) 22,197.466 7.66 170,033 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 351,424.377 7.65 2,688,396 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 481,392.756 7.65 3,682,655 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 166,542.609 7.63 1,270,720 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 35,809.566 7.63 273,227 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 183,978.442 7.62 1,401,916 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 493,957.606 7.62 3,763,957 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 271,523.360 7.61 2,066,293 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 375,101.966 7.61 2,854,526 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 736,095.750 7.59 5,586,967 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,088.348 7.59 15,851 Access - Annual Ratchet (post April 2001) 15,338.008 7.58 116,262 Access - Max 5.5 (post April 2001), Landmark - Max 7 151,076.855 7.57 1,143,652 Access - 7% Solution (post April 2001) 9,189.497 7.57 69,564 Access - Max 7 (post April 2001) 45,837.467 7.56 346,531 ES II - Max 7 (post 2000), Generations - Max 7 306,734.060 7.60 2,331,179 Landmark - 7% Solution 94,313.253 7.58 714,894 Value 10,080.927 7.71 77,724 VA Option I 33,864.629 7.70 260,758 VA Option II 24,596.088 7.67 188,652 189
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - HEALTH SCIENCES (CONTINUED) VA Option III 9,104.697 $7.65 $69,651 VA Bonus Option I 44,853.153 7.65 343,127 VA Bonus Option II 46,036.519 7.61 350,338 VA Bonus Option III 66,227.851 7.59 502,669 SmartDesign Advantage Option I 4,098.527 7.56 30,985 SmartDesign Advantage Option II 4,279.783 7.54 32,270 SmartDesign Advantage Option III 2,987.645 7.52 22,467 ----------------- --------------- 4,013,212.991 $30,563,504 ================= =============== INVESCO VIF - LEISURE Contracts in accumulation period: DVA Plus - Standard (pre February 2000) 2,494.057 $8.45 $21,075 DVA Plus - Standard (post January 2000 & post 2000) 1,919.924 8.45 16,223 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 69,606.717 8.44 587,481 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 132,018.982 8.44 1,114,240 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 28,020.116 8.43 236,210 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 1,463.630 8.43 12,338 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 65,381.973 8.43 551,170 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 30,006.613 8.42 252,656 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 41,607.549 8.42 350,336 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 54,250.341 8.42 456,788 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 100,698.931 8.41 846,878 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 757.891 8.41 6,374 190
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - LEISURE (CONTINUED) Access - Annual Ratchet (post April 2001) 3,611.911 $8.40 $30,340 Access - Max 5.5 (post April 2001), Landmark - Max 7 40,591.830 8.40 340,971 Access - 7% Solution (post April 2001) 17,360.124 8.40 145,825 Access - Max 7 (post April 2001) 7,579.148 8.39 63,589 ES II - Max 7 (post 2000), Generations - Max 7 94,573.834 8.41 795,366 Landmark - 7% Solution 24,347.114 8.41 204,759 VA Option I 749.048 8.47 6,344 VA Option II 695.822 8.45 5,880 VA Option III 767.220 8.44 6,475 VA Bonus Option I 4,265.438 8.44 36,000 VA Bonus Option II 1,327.969 8.42 11,181 ----------------- ---------------- 724,096.182 $6,098,499 ================= ================ INVESCO VIF - UTILITIES Contracts in accumulation period: DVA 80 1,587.040 $6.43 $10,205 DVA Plus - Standard (pre February 2000) 63.189 6.38 403 DVA Plus - Standard (post January 2000 & post 2000) 11,472.225 6.38 73,193 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 127,144.822 6.37 809,913 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 152,797.244 6.37 973,318 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 86,524.213 6.36 550,294 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 18,051.925 6.35 114,630 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 51,660.421 6.35 328,044 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 103,373.775 6.34 655,390 191
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - UTILITIES (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 94,265.565 $6.34 $597,644 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 167,758.159 6.33 1,061,909 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 173,345.603 6.32 1,095,544 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 2,187.610 6.32 13,826 Access - Annual Ratchet (post April 2001) 814.005 6.31 5,136 Access - Max 5.5 (post April 2001), Landmark - Max 7 52,670.628 6.30 331,825 Access - 7% Solution (post April 2001) 24,927.137 6.30 157,041 Access - Max 7 (post April 2001) 2,946.473 6.29 18,533 ES II - Max 7 (post 2000), Generations - Max 7 34,605.984 6.33 219,056 Landmark - 7% Solution 30,198.224 6.31 190,551 VA Option I 14,992.194 6.41 96,100 VA Option II 18,841.260 6.38 120,207 VA Option III 1,930.007 6.37 12,294 VA Bonus Option I 33,452.942 6.36 212,761 VA Bonus Option II 8,961.746 6.34 56,817 VA Bonus Option III 11,546.075 6.32 72,971 SmartDesign Advantage Option I 523.745 6.29 3,294 SmartDesign Advantage Option II 133.928 6.28 841 SmartDesign Advantage Option III 417.793 6.26 2,615 ----------------- --------------- 1,227,193.932 $7,784,355 ================= =============== JANUS ASPEN SERIES BALANCED Contracts in accumulation period: Rollover Choice Option I 47,037.671 $9.25 $435,098 Rollover Choice Option II 6,041.602 9.23 55,764 Rollover Choice Option III 591.682 9.21 5,449 ----------------- --------------- 53,670.955 $496,311 ================= =============== JANUS ASPEN SERIES FLEXIBLE INCOME Contracts in accumulation period: Rollover Choice Option I 19,824.232 $10.99 $217,868 Rollover Choice Option II 5,939.558 10.97 65,157 ----------------- --------------- 25,763.790 $283,025 ================= =============== JANUS ASPEN SERIES GROWTH Contracts in accumulation period: Rollover Choice Option I 26,690.842 $7.19 $191,907 ----------------- --------------- 26,690.842 $191,907 ================= =============== 192
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES WORLDWIDE GROWTH Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 3,936.633 $6.84 $26,927 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,893.741 6.82 19,735 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,871.582 6.81 39,985 VA Option I 105,069.103 6.91 726,028 VA Option II 53,631.991 6.88 368,988 VA Option III 14,254.337 6.86 97,785 VA Bonus Option I 150,684.827 6.86 1,033,698 VA Bonus Option II 65,555.286 6.83 447,743 VA Bonus Option III 58,756.313 6.81 400,130 SmartDesign Advantage Option I 7,229.106 6.78 49,013 SmartDesign Advantage Option II 11,630.857 6.76 78,625 SmartDesign Advantage Option III 3,174.425 6.75 21,427 Rollover Choice Option I 31,947.524 6.93 221,396 Rollover Choice Option II 581.133 6.91 4,016 ----------------- --------------- 515,216.858 $3,535,496 ================= =============== OPPENHEIMER GLOBAL SECURITIES Contracts in accumulation period: Rollover Choice Option I 23,286.992 $7.67 $178,611 Rollover Choice Option II 2,448.302 7.65 18,730 Rollover Choice Option III 1,064.000 7.64 8,129 ----------------- --------------- 26,799.294 $205,470 ================= =============== OPPENHEIMER STRATEGIC BOND Contracts in accumulation period: Rollover Choice Option I 832.001 $10.67 $8,877 Rollover Choice Option II 696.170 10.65 7,414 ----------------- --------------- 1,528.171 $16,291 ================= =============== PIMCO HIGH YIELD Contracts in accumulation period: DVA 80 2,477.364 $10.12 $25,071 DVA 102,400.716 10.03 1,027,079 DVA Series 100 940.098 9.87 9,279 DVA Plus - Standard (pre February 2000) 281,240.079 9.91 2,787,089 DVA Plus - Standard (post January 2000 & post 2000) 278,564.887 9.89 2,755,007 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 6,193,058.219 9.84 60,939,693 193
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIMCO HIGH YIELD (CONTINUED) DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 3,925,319.594 $9.82 $38,546,638 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,053,445.935 9.77 29,832,167 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 657,117.954 9.75 6,406,900 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 1,388,956.102 9.73 13,514,543 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 5,428,136.230 9.70 52,652,921 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 1,004,329.863 9.68 9,721,913 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,639,544.850 9.66 35,158,003 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 3,093,339.354 9.61 29,726,991 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,447.208 9.59 42,649 Access - Annual Ratchet (post April 2001) 186,395.537 9.54 1,778,213 Access - Max 5.5 (post April 2001), Landmark - Max 7 423,832.352 9.52 4,034,884 Access - 7% Solution (post April 2001) 64,823.416 9.50 615,822 Access - Max 7 (post April 2001) 218,537.943 9.45 2,065,184 ES II - Max 7 (post 2000), Generations - Max 7 624,871.926 9.63 6,017,517 Landmark - 7% Solution 272,347.815 9.57 2,606,369 Access One 3,970.224 10.27 40,774 Value 114,778.115 10.08 1,156,963 VA Option I 78,297.774 10.05 786,893 VA Option II 31,300.139 9.91 310,184 VA Option III 15,357.631 9.84 151,119 VA Bonus Option I 113,201.558 9.82 1,111,639 VA Bonus Option II 71,352.805 9.68 690,695 VA Bonus Option III 27,719.473 9.61 266,384 194
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIMCO HIGH YIELD (CONTINUED) SmartDesign Advantage Option I 16,988.722 $9.48 $161,053 SmartDesign Advantage Option II 25,014.302 9.39 234,884 SmartDesign Advantage Option III 10,727.585 9.32 99,981 ----------------- ---------------- 31,352,835.770 $305,274,501 ================= ================ PIMCO STOCKSPLUS GROWTH AND INCOME Contracts in accumulation period: DVA 80 396.590 $8.28 $3,284 DVA 68,010.499 8.20 557,686 DVA Series 100 1,768.555 8.07 14,272 DVA Plus - Standard (pre February 2000) 154,632.792 8.11 1,254,072 DVA Plus - Standard (post January 2000 & post 2000) 146,940.984 8.09 1,188,753 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 4,911,148.898 8.05 39,534,749 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 2,241,995.580 8.03 18,003,225 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 3,392,261.204 7.99 27,104,167 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 562,721.076 7.97 4,484,887 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 745,489.553 7.95 5,926,642 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 5,327,507.941 7.94 42,300,413 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 777,891.760 7.92 6,160,903 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 1,932,333.312 7.90 15,265,433 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,702,074.897 7.86 13,378,309 195
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIMCO STOCKSPLUS GROWTH AND INCOME (CONTINUED) Access - Annual Ratchet (post April 2001) 24,968.654 $7.80 $194,756 Access - Max 5.5 (post April 2001), Landmark - Max 7 218,962.411 7.79 1,705,717 Access - 7% Solution (post April 2001) 59,533.277 7.77 462,574 Access - Max 7 (post April 2001) 103,647.174 7.73 801,193 ES II - Max 7 (post 2000), Generations - Max 7 312,246.133 7.88 2,460,500 Landmark - 7% Solution 76,765.128 7.82 600,303 Value 28,964.179 8.24 238,665 ----------------- ---------------- 22,790,260.597 $181,640,503 ================= ================ PIONEER EQUITY-INCOME VCT Contracts in accumulation period: Rollover Choice Option I 15,836.215 $8.28 $131,124 Rollover Choice Option II 5,737.063 8.27 47,446 ----------------- ---------------- 21,573.278 178,570 ================= ================ PIONEER FUND VCT Contracts in accumulation period: DVA 80 1,285.499 $7.54 $9,693 DVA Plus - Standard (pre February 2000) 1,732.586 7.49 12,977 DVA Plus - Standard (post January 2000 & post 2000) 10,928.441 7.48 81,745 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 291,460.540 7.47 2,177,210 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 295,687.608 7.47 2,208,786 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 144,234.289 7.46 1,075,988 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 62,576.065 7.45 466,192 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 184,118.536 7.44 1,369,842 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 297,004.743 7.44 2,209,715 196
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIONEER FUND VCT (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 135,708.029 $7.43 $1,008,311 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 229,508.353 7.43 1,705,247 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 562,117.242 7.42 4,170,910 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 6,686.900 7.41 49,550 Access - Annual Ratchet (post April 2001) 8,140.811 7.40 60,242 Access - Max 5.5 (post April 2001), Landmark - Max 7 57,294.293 7.39 423,405 Access - 7% Solution (post April 2001) 19,166.357 7.39 141,639 Access - Max 7 (post April 2001) 21,066.987 7.38 155,474 ES II - Max 7 (post 2000), Generations - Max 7 79,240.223 7.42 587,962 Landmark - 7% Solution 91,407.752 7.41 677,331 Value 1,654.898 7.53 12,461 VA Option I 38,807.073 7.52 291,829 VA Option II 19,828.989 7.49 148,519 VA Option III 6,500.233 7.47 48,557 VA Bonus Option I 47,948.431 7.47 358,175 VA Bonus Option II 50,245.101 7.43 373,321 VA Bonus Option III 19,852.051 7.42 147,302 SmartDesign Advantage Option I 4,167.994 7.38 30,760 SmartDesign Advantage Option II 2,168.327 7.36 15,959 SmartDesign Advantage Option III 857.708 7.35 6,304 Rollover Choice Option I 5,561.288 7.54 41,932 ----------------- --------------- 2,696,957.347 $20,067,338 ================= =============== PIONEER MID-CAP VALUE VCT Contracts in accumulation period: DVA 17,509.307 $9.41 $164,763 DVA Plus - Standard (pre February 2000) 29,446.556 9.38 276,209 DVA Plus - Standard (post January 2000 & post 2000) 45,975.704 9.37 430,792 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 983,243.301 9.36 9,203,157 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 728,410.430 9.36 6,817,922 197
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIONEER MID-CAP VALUE VCT (CONTINUED) DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 509,210.033 $9.35 $4,761,114 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 113,225.368 9.34 1,057,525 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 338,219.386 9.34 3,158,969 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 796,390.778 9.33 7,430,326 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 218,154.631 9.32 2,033,201 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 503,891.718 9.32 4,696,271 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 740,866.746 9.31 6,897,469 Access - Annual Ratchet (post April 2001) 28,194.228 9.29 261,924 Access - Max 5.5 (post April 2001), Landmark - Max 7 145,462.672 9.29 1,351,348 Access - 7% Solution (post April 2001) 25,874.832 9.28 240,118 Access - Max 7 (post April 2001) 74,644.120 9.27 691,951 ES II - Max 7 (post 2000), Generations - Max 7 245,270.337 9.31 2,283,467 Landmark - 7% Solution 127,116.070 9.30 1,182,179 Value 11,515.180 9.42 108,473 Rollover Choice Option I 2,421.894 9.43 22,838 Rollover Choice Option II 369.982 9.41 3,482 ----------------- --------------- 5,685,413.273 $53,073,498 ================= =============== PIONEER SMALL COMPANY VCT Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 13,596.414 $7.81 $106,188 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 11,749.693 7.79 91,530 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 16,355.281 7.77 127,081 198
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PIONEER SMALL COMPANY VCT (CONTINUED) VA Option I 80,077.498 $7.89 $631,811 VA Option II 34,919.722 7.85 274,120 VA Option III 9,445.248 7.84 74,051 VA Bonus Option I 122,885.683 7.83 962,195 VA Bonus Option II 57,105.530 7.80 445,423 VA Bonus Option III 50,553.725 7.78 393,308 SmartDesign Advantage Option I 8,317.144 7.74 64,375 SmartDesign Advantage Option II 8,192.585 7.72 63,247 SmartDesign Advantage Option III 24,011.644 7.70 184,890 ----------------- --------------- 437,210.167 $3,418,219 ================= =============== PROFUND VP BULL Contracts in accumulation period: DVA 1,672.331 $6.71 $11,221 DVA Plus - Standard (pre February 2000) 8,556.341 6.68 57,156 DVA Plus - Standard (post January 2000 & post 2000) 18,623.407 6.68 124,404 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,231,932.938 6.67 8,216,993 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,271,888.411 6.66 8,470,777 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 194,394.055 6.65 1,292,720 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 117,319.332 6.64 779,000 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 127,499.175 6.64 846,595 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 342,069.817 6.63 2,267,923 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 185,752.318 6.63 1,231,538 199
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PROFUND VP BULL (CONTINUED) Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 475,784.662 $6.62 $3,149,694 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 491,041.711 6.61 3,245,786 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 304.523 6.61 2,013 Access - Annual Ratchet (post April 2001) 29,583.240 6.59 194,954 Access - Max 5.5 (post April 2001), Landmark - Max 7 23,782.886 6.59 156,729 Access - 7% Solution (post April 2001) 32,743.236 6.58 215,450 Access - Max 7 (post April 2001) 19,326.241 6.57 126,973 ES II - Max 7 (post 2000), Generations - Max 7 114,753.182 6.62 759,666 Landmark - 7% Solution 16,668.657 6.60 110,013 Value 1,919.612 6.72 12,900 ----------------- --------------- 4,705,616.075 $31,272,505 ================= =============== PROFUND VP EUROPE 30 Contracts in accumulation period: DVA Series 100 2,091.440 $6.06 $12,674 DVA Plus - Standard (pre February 2000) 2,703.205 6.07 16,408 DVA Plus - Standard (post January 2000 & post 2000) 11,286.811 6.06 68,398 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 257,910.120 6.05 1,560,356 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,365,500.420 6.05 8,261,278 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 156,756.190 6.04 946,807 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 42,457.449 6.03 256,018 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 64,316.959 6.03 387,831 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 181,952.664 6.02 1,095,355 200
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PROFUND VP EUROPE 30 (CONTINUED) Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 105,639.573 $6.02 $635,950 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 103,963.433 6.01 624,820 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 218,082.990 6.00 1,308,498 Access - Annual Ratchet (post April 2001) 8,143.705 5.98 48,699 Access - Max 5.5 (post April 2001), Landmark - Max 7 17,650.043 5.98 105,547 Access - 7% Solution (post April 2001) 1,104.440 5.97 6,594 Access - Max 7 (post April 2001) 30,091.610 5.96 179,346 ES II - Max 7 (post 2000), Generations - Max 7 13,789.452 6.00 82,737 Landmark - 7% Solution 5,164.325 5.99 30,934 Value 204.139 6.10 1,245 ----------------- --------------- 2,588,808.968 $15,629,495 ================= =============== PROFUND VP SMALL CAP Contracts in accumulation period: DVA 2,329.512 $7.26 $16,912 DVA Plus - Standard (pre February 2000) 41,515.869 7.23 300,160 DVA Plus - Standard (post January 2000 & post 2000) 31,843.836 7.22 229,912 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,755,935.865 7.21 12,660,298 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,133,338.695 7.21 8,171,372 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 269,439.892 7.19 1,937,273 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 72,216.551 7.19 519,237 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 236,885.358 7.18 1,700,837 201
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PROFUND VP SMALL CAP (CONTINUED) Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 499,605.632 $7.17 $3,582,172 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 182,535.627 7.17 1,308,780 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 420,431.165 7.16 3,010,287 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 374,257.847 7.15 2,675,944 Access - Annual Ratchet (post April 2001) 7,373.061 7.13 52,570 Access - Max 5.5 (post April 2001), Landmark - Max 7 68,579.360 7.13 488,971 Access - 7% Solution (post April 2001) 12,461.032 7.12 88,723 Access - Max 7 (post April 2001) 83,442.202 7.11 593,274 ES II - Max 7 (post 2000), Generations - Max 7 114,433.002 7.16 819,340 Landmark - 7% Solution 59,952.995 7.14 428,064 Value 4,866.239 7.27 35,378 ----------------- --------------- 5,371,443.740 $38,619,504 ================= =============== PRUDENTIAL JENNISON Contracts in accumulation period: DVA 11,366.432 $4.32 $49,103 DVA Plus - Standard (pre February 2000) 23,359.674 4.29 100,213 DVA Plus - Standard (post January 2000 & post 2000) 171,751.231 4.28 735,095 DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 1,009,407.882 4.27 4,310,172 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 1,366,873.798 4.27 5,836,551 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 322,010.407 4.26 1,371,764 202
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL JENNISON (CONTINUED) DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 222,330.396 $4.25 $944,904 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 522,739.562 4.24 2,216,416 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 840,344.480 4.24 3,563,061 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 565,738.494 4.23 2,393,074 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 934,116.055 4.23 3,951,311 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 1,916,839.330 4.22 8,089,062 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 5,385.239 4.21 22,672 Access - Annual Ratchet (post April 2001) 22,367.313 4.20 93,943 Access - Max 5.5 (post April 2001), Landmark - Max 7 265,343.797 4.19 1,111,791 Access - 7% Solution (post April 2001) 78,263.500 4.19 327,924 Access - Max 7 (post April 2001) 158,536.137 4.18 662,681 ES II - Max 7 (post 2000), Generations - Max 7 259,117.120 4.22 1,093,474 Landmark - 7% Solution 69,926.920 4.20 293,693 Value 30,964.333 4.33 134,076 VA Option I 8,151.859 4.33 35,298 VA Option II 15,799.358 4.29 67,779 VA Bonus Option I 35,940.756 4.27 153,467 VA Bonus Option II 37,135.007 4.23 157,081 VA Bonus Option III 4,306.427 4.22 18,173 SmartDesign Advantage Option I 2,115.980 4.18 8,845 SmartDesign Advantage Option II 2,970.195 4.16 12,356 SmartDesign Advantage Option III 608.533 4.14 2,519 ----------------- --------------- 8,903,810.215 $37,756,498 ================= =============== PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH Contracts in accumulation period: DVA 1,624.864 $4.15 $6,743 DVA Plus - Standard (pre February 2000) 15,070.093 4.13 62,239 DVA Plus - Standard (post January 2000 & post 2000) 88,237.466 4.13 364,421 203
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH (CONTINUED) DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), Access - Standard (pre February 2000), Premium Plus - Standard (pre February 2000), ES II (pre 2001), ES II - Standard (post 2000), Generations - Standard 535,933.282 $4.12 $2,208,045 DVA Plus - Annual Ratchet (post January 2000), DVA Plus - 5.5% Solution (post 2000), Access - Standard (post January 2000 and post 2000), Premium Plus - Standard (post January 2000 and post 2000), ES II - Deferred Ratchet (post 2000), Generations - Deferred Ratchet 519,699.551 4.11 2,135,965 DVA Plus - 7% Solution (pre February 2000), DVA Plus - Annual Ratchet (post 2000), DVA Plus - Max 5.5 (post January 2000), Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ES II - 5.5% Solution (post 2000) 120,333.463 4.10 493,367 DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 46,748.068 4.10 191,667 DVA Plus - 7% Solution (post January 2000 and post 2000), ES II - Annual Ratchet (post 2000), Generations - Annual Ratchet, Landmark - Standard 243,443.935 4.09 995,686 Access - 7% Solution (pre February 2000), Access - Annual Ratchet (post 2000), Access - Max 5.5 (post January 2000), DVA Plus - Annual Ratchet (post 2000), ES II - Max 5.5 (post 2000), Premium Plus - 7% Solution (pre February 2000), Premium Plus - Annual Ratchet (post 2000), Premium Plus - Max 5.5 (post January 2000) 393,653.448 4.09 1,610,043 Access - Max 5.5 (post 2000), DVA Plus - Max 7 (post January 2000 and post 2000), Premium Plus - Max 5.5 (post 2000), ES II - 7% Solution (post 2000), Generations - 7% Solution 235,551.818 4.08 961,051 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 360,088.600 4.08 1,469,161 Access - Max 7 (post January 2000 and post 2000), Premium Plus - Max 7 (post January 2000 and post 2000), Landmark - Annual Ratchet 636,058.487 4.07 2,588,758 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,559.403 4.06 14,451 Access - Annual Ratchet (post April 2001) 34,976.884 4.05 141,656 Access - Max 5.5 (post April 2001), Landmark - Max 7 156,993.562 4.05 635,824 Access - 7% Solution (post April 2001) 16,084.015 4.05 65,140 Access - Max 7 (post April 2001) 39,549.231 4.04 159,779 ES II - Max 7 (post 2000), Generations - Max 7 98,449.075 4.07 400,688 Landmark - 7% Solution 89,981.934 4.06 365,327 Value 54,114.150 4.16 225,115 VA Option I 5,285.109 4.16 21,986 VA Option II 12,259.907 4.13 50,633 VA Bonus Option I 13,713.568 4.11 56,363 204
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PRUDENTIAL SP JENNISON INTERNATIONAL GROWTH (CONTINUED) VA Bonus Option II 4,728.844 $4.08 $19,294 VA Bonus Option III 15,437.133 4.07 62,829 SmartDesign Advantage Option I 1,182.895 4.04 4,779 SmartDesign Advantage Option II 356.962 4.02 1,435 SmartDesign Advantage Option III 7,993.599 4.01 32,054 ----------------- --------------- 3,751,109.346 $15,344,499 ================= =============== PUTNAM VT GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 613.560 $7.40 $4,540 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 3,518.706 7.38 25,968 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 1,355.145 7.36 9,974 VA Option I 47,269.102 7.62 360,191 VA Option II 9,757.789 7.59 74,062 VA Option III 1,001.492 7.57 7,581 VA Bonus Option I 71,543.199 7.56 540,867 VA Bonus Option II 50,353.513 7.53 379,162 VA Bonus Option III 24,513.938 7.51 184,100 SmartDesign Advantage Option I 8,057.360 7.33 59,060 SmartDesign Advantage Option II 1,505.661 7.30 10,991 SmartDesign Advantage Option III 688.406 7.28 5,012 ----------------- --------------- 220,177.871 $1,661,508 ================= =============== PUTNAM VT INTERNATIONAL GROWTH AND INCOME Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 7,080.219 $8.03 $56,854 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 743.400 8.00 5,947 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 4,603.594 7.98 36,737 VA Option I 88,504.950 8.10 716,890 VA Option II 18,195.578 8.07 146,838 VA Option III 7,142.668 8.05 57,498 VA Bonus Option I 94,100.599 8.04 756,569 VA Bonus Option II 24,314.533 8.01 194,759 VA Bonus Option III 101,982.647 7.99 814,841 205
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL GROWTH AND INCOME (CONTINUED) SmartDesign Advantage Option I 6,043.072 $7.95 $48,042 SmartDesign Advantage Option II 2,280.679 7.93 18,086 SmartDesign Advantage Option III 16,122.611 7.91 127,530 ----------------- --------------- 371,114.550 $2,980,591 ================= =============== PUTNAM VT VOYAGER II Contracts in accumulation period: DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 5,242.644 $6.06 $31,770 Access - 7% Solution (post January 2000 and post 2000), Access - Standard (post April 2001), Premium Plus - 7% Solution (post January 2000 and post 2000), Landmark - 5.5% Solution 2,365.637 6.04 14,288 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 3,579.319 6.03 21,583 VA Option I 44,148.219 6.12 270,187 VA Option II 33,313.466 6.09 202,879 VA Option III 4,631.701 6.08 28,161 VA Bonus Option I 96,271.677 6.07 584,369 VA Bonus Option II 38,339.846 6.05 231,956 VA Bonus Option III 21,456.980 6.03 129,386 SmartDesign Advantage Option I 8,448.608 6.01 50,776 SmartDesign Advantage Option II 12,435.747 5.99 74,490 SmartDesign Advantage Option III 863.315 5.98 5,163 ----------------- --------------- 271,097.159 $1,645,008 ================= =============== SMITH BARNEY HIGH INCOME Contracts in accumulation period: Granite PrimElite - Standard 3,602.132 $11.41 $41,100 Granite PrimElite - Annual Ratchet 24,619.405 11.28 277,707 ----------------- --------------- 28,221.537 $318,807 ================= =============== SMITH BARNEY INTERNATIONAL ALL CAP GROWTH Contracts in accumulation period: Granite PrimElite - Standard 1,685.183 $8.92 $15,032 Granite PrimElite - Annual Ratchet 21,044.795 8.82 185,615 ----------------- --------------- 22,729.978 $200,647 ================= =============== SMITH BARNEY LARGE CAP VALUE Contracts in accumulation period: Granite PrimElite - Standard 2,504.960 $14.26 $35,721 Granite PrimElite - Annual Ratchet 23,808.210 14.09 335,458 ----------------- --------------- 26,313.170 $371,179 ================= =============== 206
Golden American Life Insurance Company Separate Account B Notes to Financial Statements (continued) 7. UNIT SUMMARY (CONTINUED)
UNIT EXTENDED DIVISION/CONTRACT UNITS VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- SMITH BARNEY MONEY MARKET Contracts in accumulation period: Granite PrimElite - Standard 6,864.600 $12.68 $87,043 Granite PrimElite - Annual Ratchet 4,446.085 12.53 55,709 ----------------- --------------- 11,310.685 $142,752 ================= =============== UBS TACTICAL ALLOCATION DVA Plus - Max 5.5 (post 2000), Access - Annual Ratchet (post January 2000), Access - 5.5% Solution (post January 2000 and post 2000), Premium Plus - Annual Ratchet (post January 2000), Premium Plus - 5.5% Solution (post January 2000 and post 2000) 4,476.111 $7.12 $31,870 Access - 5.5% Solution (post April 2001), Landmark - Max 5.5% 9,383.635 7.08 66,436 VA Option I 46,001.622 7.19 330,752 VA Option II 16,031.679 7.16 114,787 VA Option III 7,474.126 7.14 53,365 VA Bonus Option I 58,942.255 7.14 420,848 VA Bonus Option II 38,953.675 7.10 276,571 VA Bonus Option III 18,471.861 7.09 130,965 SmartDesign Advantage Option I 6,768.805 7.06 47,788 SmartDesign Advantage Option II 10,343.837 7.04 72,821 SmartDesign Advantage Option III 326.855 7.02 2,295 ----------------- --------------- 217,174.461 $1,548,498 ================= ===============
207 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS A summary of unit values and units outstanding for variable annuity Contracts, expense ratios, excluding expenses of underlying Funds, investment income ratios, and total return for the years ended December, 31, 2002 and 2001, along with unit values and units outstanding for the year ended December 31, 2000, follows:
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST: All Cap 2002 29,232 $8.34 to $8.68 $ 247,740 2001 25,814 $11.46 to $11.76 299,314 2000 9,062 $11.54 to $11.65 104,883 All Cap Advisor 2002 18 $9.52 to $9.53 176 2001 *** *** *** 2000 *** *** *** Asset Allocation Growth 2002 6,551 $7.12 to $7.35 47,241 2001 5,718 $8.55 to $8.70 49,242 2000 501 $9.37 to $9.38 4,696 Capital Growth 2002 24,777 $9.52 to $10.52 246,769 2001 27,303 $13.93 to $15.15 395,434 2000 27,139 $16.80 to $17.71 463,399 Capital Growth Advisor 2002 14 $10.45 to $10.46 148 2001 *** *** *** 2000 *** *** ***
208 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Capital Guardian Small Cap 2002 26,339 $12.37 to $14.00 $ 341,146 2001 27,165 $16.97 to $18.87 480,513 2000 23,107 $17.94 to $19.25 422,097 Capital Guardian Small Cap Advisor 2002 33 $9.72 to $9.73 321 2001 *** *** *** 2000 *** *** *** Core Bond 2002 34,238 $11.55 to $13.41 425,125 2001 9,873 $11.14 to $12.39 114,996 2000 3,438 $11.37 to $12.19 40,000 Core Bond Advisor 2002 97 $10.24 to $10.26 992 2001 *** *** *** 2000 *** *** *** Developing World 2002 9,702 $5.98 to $6.42 60,000 2001 10,141 $6.85 to $7.25 71,466 2000 7,211 $7.47 to $7.71 54,398 Developing World Advisor 2002 8 $9.70 to $9.71 79 2001 *** *** *** 2000 *** *** *** Diversified Mid-Cap 2002 12,695 $7.09 to $7.31 91,159 2001 6,381 $8.99 to $9.15 57,814 2000 1,150 $9.87 to $9.88 11,358
209 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Diversified Mid-Cap Advisor 2002 23 $9.47 to $9.48 $ 220 2001 *** *** *** 2000 *** *** *** Equity Growth 2002 559 $7.78 to $7.85 4,362 2001 *** *** *** 2000 *** *** *** Equity Growth Advisor 2002 48 $9.63 to $9.64 458 2001 *** *** *** 2000 *** *** *** Equity Income 2002 20,545 $18.11 to $23.18 409,670 2001 17,698 $21.34 to $26.84 416,763 2000 12,207 $22.48 to $26.61 291,793 Equity Income Advisor 2002 65 $9.81 to $9.83 640 2001 *** *** *** 2000 *** *** *** Equity Opportunity 2002 19,040 $13.72 to $16.05 280,954 2001 20,717 $19.84 to $22.87 440,209 2000 19,193 $24.06 to $26.49 477,934 Equity Opportunity Advisor 2002 3 $9.74 to $9.75 34 2001 *** *** *** 2000 *** *** ***
210 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Focus Value 2002 710 $8.32 to $8.40 $ 5,931 2001 *** *** *** 2000 *** *** *** Focus Value Advisor 2002 5 $10.16 to $10.17 48 2001 *** *** *** 2000 *** *** *** Fully Managed 2002 34,525 $24.75 to $30.37 935,079 2001 23,375 $25.20 to $30.47 644,971 2000 13,395 $24.47 to $27.95 345,651 Fully Managed Advisor 2002 89 $9.99 to $10.01 894 2001 *** *** *** 2000 *** *** *** Fundamental Growth Focus 2002 345 $7.93 to $8.00 2,742 2001 *** *** *** 2000 *** *** *** Fundamental Growth Advisor 2002 11 $9.44 to $9.45 108 2001 *** *** *** 2000 *** *** *** Global Franchise 2002 1,661 $8.80 to $8.88 14,670 2001 *** *** *** 2000 *** *** ***
211 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Global Franchise Advisor 2002 74 $9.51 to $9.52 $ 708 2001 *** *** *** 2000 *** *** *** Growth 2002 53,954 $9.92 to $11.18 560,041 2001 66,921 $14.41 to $15.95 1,002,892 2000 67,525 $21.49 to $22.98 1,474,980 Growth Advisor 2002 9 $9.76 to $9.78 92 2001 *** *** *** 2000 *** *** *** Hard Assets 2002 4,986 $12.44 to $15.93 67,753 2001 2,395 $12.63 to $15.27 33,209 2000 2,584 $15.34 to $17.52 41,509 Hard Assets Advisor 2002 10 $9.82 to $9.83 97 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE 2002 608 $8.17 to $8.25 4,990 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE Advisor 2002 17 $9.74 to $9.76 165 2001 *** *** *** 2000 *** *** ***
212 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): International Equity 2002 16,969 $6.80 to $7.46 $ 120,477 2001 16,734 $8.37 to $8.98 144,061 2000 17,171 $11.23 to $11.73 194,618 International Equity Advisor 2002 26 $9.79 to $9.80 254 2001 *** *** *** 2000 *** *** *** Internet Tollkeeper 2002 2,769 $4.58 to $4.69 12,802 2001 709 $7.57 to $7.64 5,389 2000 ** ** ** Internet Tollkeeper Advisor 2002 5 $10.40 to $10.42 53 2001 *** *** *** 2000 *** *** *** Investors 2002 11,516 $7.87 to $8.19 92,136 2001 8,646 $10.45 to $10.73 91,400 2000 1,917 $11.21 to $11.31 21,558 Investors Advisor 2002 30 $9.74 to $9.75 297 2001 *** *** *** 2000 *** *** *** J.P. Morgan Fleming Small Cap Equity 2002 1,212 $7.79 to $7.87 9,490 2001 *** *** *** 2000 *** *** ***
213 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): J.P. Morgan Fleming Small Cap Advisor 2002 54 $9.48 to $9.49 $ 511 2001 *** *** *** 2000 *** *** *** Janus Growth and Income 2002 18,616 $6.87 to $7.13 130,345 2001 10,487 $8.78 to $8.93 92,720 2000 1,280 $9.93 to $9.96 12,726 Janus Growth and Income Advisor 2002 60 $9.71 to $9.73 587 2001 *** *** *** 2000 *** *** *** Large Cap Value 2002 39,602 $7.34 to $7.73 295,688 2001 27,628 $9.85 to $10.20 275,489 2000 9,362 $10.50 to $10.59 98,545 Large Cap Value Advisor 2002 32 $10.25 to $10.27 333 2001 *** *** *** 2000 *** *** *** Limited Maturity Bond 2002 28,506 $17.84 to $22.84 558,941 2001 19,509 $17.02 to $21.41 364,062 2000 11,438 $16.67 to $19.77 200,958 Liquid Asset 2002 66,797 $13.46 to $17.34 1,023,179 2001 69,541 $13.62 to $17.79 1,071,485 2000 44,678 $14.50 to $16.61 679,666
214 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Liquid Asset Advisor 2002 180 $9.98 to $9.99 $ 1,800 2001 *** *** *** 2000 *** *** *** Managed Global 2002 16,459 $12.62 to $15.12 223,084 2001 14,451 $16.18 to $19.04 250,388 2000 11,365 $19.34 to $21.72 228,347 Managed Global Advisor 2002 5 $10.23 50 2001 *** *** *** 2000 *** *** *** Mid-Cap Growth 2002 27,548 $14.97 to $17.32 435,581 2001 29,521 $29.92 to $34.01 928,290 2000 27,623 $40.98 to $43.92 1,158,061 Mid-Cap Growth Advisor 2002 56 $9.75 to $9.77 549 2001 *** *** *** 2000 *** *** *** Real Estate 2002 6,881 $24.84 to $31.80 187,607 2001 4,535 $25.36 to $31.90 126,169 2000 3,804 $25.04 to $28.59 100,303 Real Estate Advisor 2002 29 $9.60 to $9.61 276 2001 *** *** *** 2000 *** *** ***
215 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Research 2002 28,285 $13.75 to $15.91 $ 421,035 2001 31,622 $19.19 to $21.34 637,711 2000 30,638 $25.56 to $27.39 800,528 Research Advisor 2002 34 $9.70 to $9.72 326 2001 *** *** *** 2000 *** *** *** Special Situations 2002 3,609 $5.96 to $6.15 21,794 2001 2,932 $8.23 to $8.38 24,325 2000 663 $8.88 to $8.89 5,891 Special Situations Advisor 2002 6 $9.62 to $9.63 56 2001 *** *** *** 2000 *** *** *** Strategic Equity 2002 14,324 $9.29 to $10.34 139,852 2001 17,855 $13.92 to $15.26 259,382 2000 19,182 $18.40 to $19.51 359,734 Strategic Equity Advisor 2002 8 $9.63 to $9.65 78 2001 *** *** *** 2000 *** *** *** Total Return 2002 45,174 $17.48 to $20.72 853,266 2001 39,136 $18.90 to $21.94 793,394 2000 29,621 $20.10 to $21.54 608,868
216 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GCG TRUST (CONTINUED): Total Return Advisor 2002 95 10.03 to $10.04 $ 955 2001 *** *** *** 2000 *** *** *** Value Equity 2002 11,740 $13.65 to $15.72 173,239 2001 10,991 $17.24 to $19.10 199,039 2000 9,358 $18.85 to $20.15 180,722 Value Equity Advisor 2002 11 $9.61 to $9.63 107 2001 *** *** *** 2000 *** *** *** Van Kampen Growth and Income 2002 30,992 $16.77 to $19.76 554,608 2001 34,270 $20.13 to $23.30 732,049 2000 34,836 $24.00 to $26.02 860,338 Van Kampen Growth and Income Advisor 2002 101 $9.78 to $9.79 990 2001 *** *** *** 2000 *** *** *** AIM VARIABLE INSURANCE FUNDS: AIM V.I. Dent Demographic Trends 2002 1,550 $7.24 to $7.38 11,335 2001 323 $10.97 to $11.00 3,550 2000 ** ** **
217 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- AIM VARIABLE INSURANCE FUNDS (CONTINUED): AIM V.I. Growth 2002 121 $6.92 to $7.06 $ 848 2001 43 $10.32 to $10.35 443 2000 ** ** ** AIM V.I. Capital Appreciation 2002 4 $7.40 27 2001 *** *** *** 2000 *** *** *** AIM V.I. Core Equity 2002 5 $8.26 41 2001 *** *** *** 2000 *** *** *** AIM V.I. Premier Equity 2002 12 $6.82 to $6.84 80 2001 *** *** *** 2000 *** *** *** ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.: Alliance Bernstein Value 2002 315 $8.46 to $8.66 2,709 2001 59 $9.98 to $10.05 595 2000 ** ** ** Alliance Growth and Income 2002 644 $7.23 to $7.40 4,730 2001 172 $9.57 to $9.61 1,653 2000 ** ** ** Alliance Premier Growth 2002 322 $6.41 to $6.56 2,094 2001 114 $9.52 to $9.58 1,091 2000 ** ** **
218 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND: Fidelity(R) VIP GrowtH 2002 3,655 $6.26 to $6.43 $ 23,212 2001 75 $9.25 to $9.29 693 2000 ** ** ** Fidelity(R) VIP Equity-Income 2002 3,054 $7.70 to $7.91 23,851 2001 203 $9.55 to $9.61 1,949 2000 ** ** ** Fidelity(R)VIP Contrafund(R) 2002 513 $8.50 to $8.73 4,438 2001 122 $9.68 to $9.73 1,183 2000 ** ** ** Fidelity(R) VIP Overseas 2002 1 $7.89 9 2001 *** *** *** 2000 *** *** *** FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST: Franklin Small Cap Value Securities 2002 2 $8.97 to $8.99 17 2001 *** *** *** 2000 *** *** *** GREENWICH STREET SERIES FUND: Greenwich Appreciation 2002 42 $13.88 to $14.02 589 2001 42 $17.07 to $17.22 723 2000 46 $18.03 to $18.16 831
219 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- THE GALAXY VIP FUND: Galaxy VIP Asset Allocation 2002 78 $8.05 to $8.15 $ 631 2001 128 $9.75 to $9.84 1,260 2000 129 $10.73 to $10.78 1,387 Galaxy VIP Equity 2002 75 $6.46 to $6.57 487 2001 88 $9.12 to $9.21 807 2000 94 $11.36 to $11.41 1,071 Galaxy VIP Growth and Income 2002 16 $7.44 to $7.56 122 2001 19 $10.31 to $10.40 201 2000 26 $10.93 to $10.98 284 Galaxy VIP High Quality Bond 2002 10 $12.57 to $12.74 130 2001 13 $11.60 to $11.70 152 2000 7 $11.04 to $11.05 78 Galaxy VIP Small Company Growth 2002 7 $8.55 to $8.69 57 2001 6 $12.99 to $13.14 84 2000 5 $13.27 to $13.35 72 ING GET FUND: ING GET Fund - Series N 2002 2,862 $9.96 to $10.10 28,661 2001 3,009 $10.24 to $10.28 30,868 2000 ** ** **
220 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING GET FUND (CONTINUED): ING GET Fund - Series P 2002 14,328 $9.81 to $10.02 $ 143,846 2001 15,276 $9.99 to $10.04 153,045 2000 ** ** ** ING GET Fund - Series Q 2002 16,855 $9.93 to $10.12 169,029 2001 190 $10.00 1,904 2000 ** ** ** ING GET Fund - Series R 2002 16,911 $10.01 to $10.16 170,526 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series S 2002 21,867 $9.98 to $10.08 219,270 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series T 2002 23,643 $10.04 to $10.10 237,948 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series U 2002 105 $9.99 to $10.00 1,048 2001 *** *** *** 2000 *** *** ***
221 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC.: ING Alger Growth 2002 6 $6.56 $ 39 2001 *** *** *** 2000 *** *** *** ING American Century Small Cap Value 2002 - $8.10 2 2001 *** *** *** 2000 *** *** *** ING J.P. Morgan Mid Cap Value 2002 33 $9.09 to $9.19 301 2001 *** *** *** 2000 *** *** *** ING MFS(R)Capital Opportunities (Initial Class) 2002 209 $6.04 to $6.18 1,280 2001 78 $8.92 to $9.91 698 2000 ** ** ** ING MFS(R)Capital Opportunities (Sevice Class) 2002 11 $6.85 72 2001 *** *** *** 2000 *** *** *** ING MFS(R) Global Growth 2002 9 $8.27 to $8.35 75 2001 *** *** *** 2000 *** *** ***
222 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC. (CONTINUED): ING OpCap Balanced Value 2002 16 $7.80 $ 126 2001 *** *** *** 2000 *** *** *** ING PIMCO Total Return 2002 55 $10.75 593 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Capital 2002 1 $7.41 9 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Investors Value 2002 - $7.61 4 2001 *** *** *** 2000 *** *** *** ING Scudder International Growth 2002 1 $8.13 to $8.14 7 2001 *** *** *** 2000 *** *** *** ING T. Rowe Price Growth Equity 2002 19 $7.51 to $7.52 144 2001 *** *** *** 2000 *** *** *** ING UBS Tactical Asset Allocation Division 2002 - $7.54 2 2001 *** *** *** 2000 *** *** ***
223 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING PARTNERS, INC. (CONTINUED): ING Van Kampen Comstock Division 2002 210 $8.24 to $8.34 $ 1,737 2001 *** *** *** 2000 *** *** *** ING VARIABLE INSURANCE TRUST: ING VP Worldwide Growth 2002 5,299 $5.05 to $5.28 27,358 2001 2,863 $6.92 to $7.08 20,014 2000 635 $8.72 to $8.78 5,554 ING VP BOND PORTFOLIO: ING VP Bond 2002 4,668 $10.58 to $10.69 49,590 2001 *** *** *** 2000 *** *** *** ING VARIABLE PORTFOLIOS, INC.: ING VP Growth 2002 7 $6.94 46 2001 *** *** *** 2000 *** *** *** ING VP Index Plus LargeCap 2002 634 $7.11 to $7.31 4,589 2001 87 $9.36 to $9.40 812 2000 ** ** ** ING VP Index Plus MidCap 2002 692 $8.41 to $8.64 5,909 2001 83 $9.87 to $9.91 820 2000 ** ** **
224 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING VARIABLE PORTFOLIOS, INC. (CONTINUED): ING VP Index Plus SmallCap 2002 465 $8.47 to $8.70 $ 4,005 2001 67 $10.07 to $10.11 680 2000 ** ** ** ING VP Small Company 2002 21 $7.54 to $7.56 156 2001 *** *** *** 2000 *** *** *** ING VP Value Opportunity 2002 166 $6.46 to $6.63 1,086 2001 33 $9.00 to $9.04 298 2000 ** ** ** ING VARIABLE PRODUCTS TRUST: ING VP Convertible 2002 107 $9.48 to $9.70 1,034 2001 18 $10.46 to $10.52 194 2000 ** ** ** ING VP Growth Opportunities 2002 1,895 $5.19 to $5.32 9,918 2001 671 $7.75 to $7.82 5,219 2000 ** ** ** ING VP International Value 2002 5 $8.45 to $8.47 42 2001 *** *** *** 2000 *** *** ***
225 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- ING VARIABLE PRODUCTS TRUST (CONTINUED): ING VP Large Company Value 2002 120 $7.84 to $8.03 $ 958 2001 15 $10.37 to $10.45 156 2000 ** ** ** ING VP LargeCap Growth 2002 163 $6.06 to $6.21 1,006 2001 56 $9.57 to $9.62 533 2000 ** ** ** ING VP MagnaCap 2002 1,746 $7.00 to $7.16 12,338 2001 579 $9.30 to $9.39 5,402 2000 ** ** ** ING VP MidCap Opportunities 2002 2 $7.24 12 2001 *** *** *** 2000 *** *** *** ING VP SmallCap Opportunities 2002 6,553 $4.55 to $4.67 30,118 2001 1,737 $8.28 to $8.36 14,437 2000 ** ** ** INVESCO VARIABLE INVESTMENT FUNDS, INC.: INVESCO VIF - Financial Services 2002 2,931 $7.73 to $7.92 22,941 2001 256 $9.33 to $9.39 2,404 2000 ** ** **
226 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. (CONTINUED): INVESCO VIF - Health Sciences 2002 4,013 $7.52 to $7.72 $ 30,558 2001 1,052 $10.22 to $10.29 10,790 2000 ** ** ** INVESCO VIF - Leisure 2002 724 $8.39 to $8.47 6,097 2001 *** *** *** 2000 *** *** *** INVESCO VIF - Utilities 2002 1,227 $6.26 to $6.43 7,783 2001 119 $8.09 to $8.13 964 2000 ** ** ** JANUS ASPEN SERIES: Janus Aspen Series Balanced 2002 54 $9.21 to $9.25 496 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Flexible Income 2002 26 $10.97 to $10.99 283 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Growth 2002 27 $7.19 192 2001 *** *** *** 2000 *** *** ***
227 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- JANUS ASPEN SERIES (CONTINUED): Janus Aspen Series Worldwide Growth 2002 515 $6.75 to $6.93 $ 3,534 2001 139 $9.32 to $9.39 1,298 2000 ** ** ** OPPENHEIMER VARIABLE ACCOUNTS FUND: Oppenheimer Global Securities 2002 27 $7.64 to $7.67 205 2001 *** *** *** 2000 *** *** *** Oppenheimer Strategic Bond 2002 2 $10.65 to $10.67 16 2001 *** *** *** 2000 *** *** *** PIMCO VARIABLE INSURANCE TRUST: PIMCO High Yield 2002 31,353 $9.32 to $10.27 305,237 2001 23,564 $9.79 to $10.44 236,343 2000 16,336 $9.88 to $10.17 162,857 PIMCO StocksPLUS Growth and Income 2002 22,790 $7.73 to $8.28 181,637 2001 23,718 $9.91 to $10.46 241,065 2000 22,158 $11.56 to $11.91 258,484 PIONEER VARIABLE CONTRACTS TRUST: Pioneer Equity-Income VCT 2002 22 $8.27 to $8.28 179 2001 *** *** *** 2000 *** *** ***
228 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED): Pioneer Fund VCT 2002 2,697 $7.35 to $7.54 $ 20,064 2001 243 $9.36 to $9.41 2,275 2000 ** ** ** Pioneer Mid-Cap Value VCT 2002 5,685 $9.27 to $9.43 53,062 2001 480 $10.70 to $10.72 5,139 2000 ** ** ** Pioneer Small Company VCT 2002 437 $7.70 to $7.89 3,417 2001 98 $9.54 to $9.61 938 2000 ** ** ** PROFUNDS VP: ProFund VP Bull 2002 4,706 $6.57 to $6.72 31,265 2001 2,316 $8.84 to $8.92 20,583 2000 ** ** ** ProFund VP Europe 30 2002 2,589 $5.96 to $6.10 15,627 2001 764 $8.22 to $8.29 6,312 2000 ** ** ** ProFund VP Small-Cap 2002 5,371 $7.11 to $7.27 38,612 2001 2,118 $9.38 to $9.46 19,968 2000 ** ** **
229 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- PRUDENTIAL SERIES FUND, INC.: Prudential Jennison 2002 8,904 $4.14 to $4.33 $ 37,748 2001 7,335 $6.21 to $6.35 45,991 2000 987 $7.82 to $7.85 7,732 Prudential SP Jennison International Growth 2002 3,751 $4.01 to $4.16 15,341 2001 2,097 $5.35 to $5.44 11,310 2000 318 $8.55 to $8.57 2,720 PUTNAM VARIABLE TRUST: Putnam VT Growth and Income 2002 220 $7.28 to $7.62 1,662 2001 48 $9.25 to $9.50 455 2000 ** ** ** Putnam VT International Growth and Income 2002 371 $7.91 to $8.10 2,981 2001 64 $9.44 to $9.49 604 2000 ** ** ** Putnam VT Voyager Fund II 2002 271 $5.98 to $6.12 1,645 2001 66 $8.71 to $8.77 577 2000 ** ** ** TRAVELERS SERIES FUND INC.: Smith Barney High Income 2002 28 $11.28 to $11.41 319 2001 31 $11.82 to $11.94 370 2000 36 $12.46 to $12.56 446
230 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
UNITS UNIT FAIR VALUE NET ASSETS DIVISION (000S) LOWEST TO HIGHEST (000S) ---------------------------------------------- ------------ -------------------- -------------------- TRAVELERS SERIES FUND INC. (CONTINUED): Smith Barney International All Cap Growth 2002 23 $8.82 to $8.92 $ 201 2001 25 $12.04 to $12.16 300 2000 26 $17.74 to $17.89 455 Smith Barney Large Cap Value 2002 26 $14.09 to $14.26 371 2001 29 $19.16 to $19.35 563 2000 33 $21.16 to $21.34 692 Smith Barney Money Market 2002 11 $12.53 to $12.68 143 2001 17 $12.55 to $12.68 221 2000 13 $12.27 to $12.38 156 UBS SERIES TRUST: UBS Tactical Allocation 2002 217 $7.02 to $7.19 1,548 2001 84 $9.37 to $9.42 787 2000 ** ** **
Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST: All Cap 2002 0.22% 0.90% to 2.25% -27.23% to -26.19% 2001 1.47% 0.90% to 2.25% 0.00% to 0.94% 2000 * * * All Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Asset Allocation Growth 2002 1.11% 0.90% to 2.25% -16.73% to -15.52% 2001 1.78% 0.90% to 2.25% -8.32% to -7.68% 2000 * * * Capital Growth 2002 - 0.80% to 2.25% -31.66% to -30.56% 2001 - 0.80% to 2.25% -15.42% to -14.46% 2000 * * * Capital Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231 Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Capital Guardian Small Cap 2002 0.12% 0.80% to 2.25% -27.11% to -25.80% 2001 0.13% 0.50% to 2.25% -3.40% to -1.97% 2000 * * * Capital Guardian Small Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Core Bond 2002 3.72% 0.80% to 2.55% 3.69% to 8.23% 2001 0.40% 0.80% to 2.25% 0.53% to 1.64% 2000 * * * Core Bond Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Developing World 2002 - 0.80% to 2.25% -12.70% to -11.45% 2001 1.18% 0.80% to 2.25% -7.10% to -5.97% 2000 * * * Developing World Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Diversified Mid-Cap 2002 0.29% 0.90% to 2.25% -21.13% to -20.11% 2001 0.48% 0.90% to 2.25% -8.41% to -7.79% 2000 * * *
231a Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Diversified Mid-Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Equity Growth 2002 *** 0.90% to 2.25% *** 2001 *** *** *** 2000 *** *** *** Equity Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Equity Income 2002 1.34% 0.50% to 2.25% -15.14% to -13.64% 2001 1.95% 0.50% to 2.25% -0.58% to 1.46% 2000 * * * Equity Income Advisor 2002 *** 1.40% to 1..85% *** 2001 *** *** *** 2000 *** *** *** Equity Opportunity 2002 0.13% 0.80% to 2.25% -30.85% to -29.82% 2001 0.07% 0.80% to 2.25% -14.67% to -13.67% 2000 * * * Equity Opportunity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231b Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Focus Value 2002 *** 0.90% to 2.25% *** 2001 *** *** *** 2000 *** *** *** Focus Value Advisor 2002 *** 1.65% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Fully Managed 2002 1.72% 0.80% to 2.25% -1.79% to -0.33% 2001 3.34% 0.80% to 2.25% 7.85% to 9.02% 2000 * * * Fully Managed Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Fundamental Growth Focus 2002 *** 0.90% to 2.15% *** 2001 *** *** *** 2000 *** *** *** Fundamental Growth Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Global Franchise 2002 *** 0.80% to 2.25% *** 2001 *** *** *** 2000 *** *** ***
213c Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Global Franchise Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Growth 2002 - 0.50% to 2.25% -31.16% to -29.91% 2001 - 0.50% to 2.25% -31.55% to -30.59% 2000 * * * Growth Advisor 2002 *** 1.40% to 1.75% *** 2001 *** *** *** 2000 *** *** *** Hard Assets 2002 0.68% 0.50% to 2.25% -1.50% to 4.32% 2001 - 0.80% to 2.25% -13.82% to -12.84% 2000 * * * Hard Assets Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE 2002 *** 0.90% to 2.40% *** 2001 *** *** *** 2000 *** *** *** International Enhanced EAFE Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231d Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): International Equity 2002 0.75% 0.90% to 2.25% -18.76% to -16.93% 2001 - 0.90% to 2.10% -24.87% to -22.18% 2000 * * * International Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Internet Tollkeeper 2002 - 0.90% to 2.25% -39.50% to -38.61% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** Internet Tollkeeper Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Investors 2002 0.81% 0.90% to 2.25% -24.69% to -23.67% 2001 1.30% 0.90% to 2.25% -6.16% to -5.13% 2000 * * * Investors Advisor 2002 *** 1.65% to 1.85% *** 2001 *** *** *** 2000 *** *** *** J.P. Morgan Fleming Small Cap Equity 2002 *** 0.90% to 2.40% *** 2001 *** *** *** 2000 *** *** ***
231e Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): J.P. Morgan Fleming Small Cap Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Janus Growth and Income 2002 0.45% 0.90% to 2.55% -21.75% to -20.16% 2001 1.02% 0.90% to 2.25% -11.18% to -10.34% 2000 * * * Janus Growth and Income Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Large Cap Value 2002 0.25% 0.50% to 2.25% -25.48% to -24.22% 2001 0.25% 0.50% to 2.25% -5.43% to -4.44% 2000 * * * Large Cap Value Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Limited Maturity Bond 2002 3.62% 0.50% to 2.25% 4.82% to 6.68% 2001 4.84% 0.50% to 2.25% 6.78% to 8.30% 2000 * * * Liquid Asset 2002 1.42% 0.50% to 2.55% -1.17% to 0.96% 2001 3.59% 0.50% to 2.55% 1.86% to 3.01% 2000 * * *
231f Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Liquid Asset Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Managed Global 2002 0.13% 0.50% to 2.25% -22.00% to -20.59% 2001 0.13% 0.50% to 2.25% -13.60% to -12.34% 2000 * * * Managed Global Advisor 2002 *** 1.75% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Mid-Cap Growth 2002 - 0.50% to 2.25% -49.97% to -49.07% 2001 0.37% 0.50% to 2.25% -25.09% to -24.25% 2000 * * * Mid-Cap Growth Advisor 2002 *** 1.40% to 1.80% *** 2001 *** *** *** 2000 *** *** *** Real Estate 2002 3.73% 0.50% to 2.25% -2.05% to 0.31% 2001 4.29% 0.50% to 2.25% 6.07% to 7.28% 2000 * * * Real Estate Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** ***
231g Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Research 2002 0.41% 0.80% to 2.55% -28.35% to -25.45% 2001 0.12% 0.80% to 2.25% -22.97% to -22.09% 2000 * * * Research Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Special Situations 2002 - 0.90% to 2.25% -27.58% to -26.61% 2001 0.37% 0.90% to 2.25% -6.87% to -6.19% 2000 * * * Special Situations Advisor 2002 *** 1.40% to 1.75% *** 2001 *** *** *** 2000 *** *** *** Strategic Equity 2002 - 0.80% to 2.25% -33.26% to -32.24% 2001 - 0.80% to 2.25% -22.66% to -21.78% 2000 * * * Strategic Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Total Return 2002 2.36% 0.50% to 2.55% -7.51% to -5.56% 2001 4.88% 0.50% to 2.55% -1.44% to -0.32% 2000 * * *
231h Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GCG TRUST (CONTINUED): Total Return Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Value Equity 2002 0.69% 0.80% to 2.55% -20.82% to -17.70% 2001 0.85% 0.80% to 2.25% -6.21% to -5.21% 2000 * * * Value Equity Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** Van Kampen Growth and Income 2002 0.84% 0.50% to 2.25% -16.69% to -15.19% 2001 0.30% 0.50% to 2.25% -13.63% to -12.68% 2000 * * * Van Kampen Growth and Income Advisor 2002 *** 1.40% to 1.85% *** 2001 *** *** *** 2000 *** *** *** AIM VARIABLE INSURANCE FUNDS: AIM V.I. Dent Demographic Trends 2002 0.00% 0.95% to 2.55% -34.00% to -32.91% 2001 ** 0.95% to 2.25% ** 2000 ** ** **
231i Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- AIM VARIABLE INSURANCE FUNDS (CONTINUED): AIM V.I. Growth 2002 - 0.95% to 2.55% -32.94% to -31.79% 2001 1.09% 0.95% to 1.90% ** 2000 ** ** ** AIM V.I. Capital Appreciation 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** AIM V.I. Core Equity 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** AIM V.I. Premier Equity 2002 *** 0.75 % to 0.95% *** 2001 *** *** *** 2000 *** *** *** ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.: Alliance Bernstein Value 2002 0.17% 0.95% to 2.55% -15.23% to -13.83% 2001 ** 0.95% to 2.40% ** 2000 ** ** ** Alliance Growth and Income 2002 3.91% 0.95% to 2.55% -24.45% to -23.00% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Alliance Premier Growth 2002 - 0.95% to 2.55% -32.66% to -31.52% 2001 ** 0.95% to 2.40% ** 2000 ** ** **
231j Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND: Fidelity(R) VIP GrowtH 2002 0.02% 0.90% to 2.55% -32.32% to -30.79% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Fidelity(R) VIP Equity-Income 2002 1.09% 0.75% to 2.55% -18.95% to -17.69% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** Fidelity(R)VIP Contrafund(R) 2002 0.37% 0.75% to 2.55% -12.19% to -10.28% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Fidelity(R) VIP Overseas 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST: Franklin Small Cap Value Securities 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** GREENWICH STREET SERIES FUND: Greenwich Appreciation 2002 1.50% 1.25% to 1.40% -18.69% to -18.58% 2001 1.15% 1.25% to 1.40% -5.32% to -5.18% 2000 * * *
231k Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- THE GALAXY VIP FUND: Galaxy VIP Asset Allocation 2002 2.08% 1.40% to 1.80% -17.44% to -17.17% 2001 2.29% 1.40% to 1.80% -9.13% to -8.72% 2000 * * * Galaxy VIP Equity 2002 0.23% 1.40% to 1.90% -29.17% to -28.66% 2001 - 1.40% to 1.80% '-19.72% to -19.28% 2000 * * * Galaxy VIP Growth and Income 2002 0.09% 1.40% to 1.90% -27.84% to -27.31% 2001 0.15% 1.40% to 1.80% -5.67% to -5.28% 2000 * * * Galaxy VIP High Quality Bond 2002 4.71% 1.40% to 1.80% 8.36% to 8.89% 2001 5.35% 1.40% to 1.80% 5.88% to 5.89% 2000 * * * Galaxy VIP Small Company Growth 2002 - 1.40% to 1.90% -34.18% to -33.87% 2001 - 1.40% to 1.90% -2.11% to -1.57% 2000 * * * ING GET FUND: ING GET Fund - Series N 2002 1.35% 0.95% to 1.90% -2.73% to -1.75% 2001 2.25% 0.95% to 1.90% ** 2000 ** ** **
231l Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING GET FUND (CONTINUED): ING GET Fund - Series P 2002 0.07% 0.75% to 2.55% -1.80% to -0.20% 2001 ** 0.95% to 2.55% ** 2000 ** ** ** ING GET Fund - Series Q 2002 2.51% 0.75% to 2.55% -0.70% to 1.20% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING GET Fund - Series R 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series S 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series T 2002 *** 0.75% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING GET Fund - Series U 2002 *** 0.75% to 2.20% *** 2001 *** *** *** 2000 *** *** ***
231m Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC.: ING Alger Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING American Century Small Cap Value 2002 *** 0.95% *** 2001 *** *** *** 2000 *** *** *** ING J.P. Morgan Mid Cap Value 2002 *** 0.95% to 2.55% *** 2001 *** *** *** 2000 *** *** *** ING MFS(R)Capital Opportunities (Initial Class) 2002 - 0.95% to 2.40% -37.64% to -32.29% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING MFS(R)Capital Opportunities (Sevice Class) 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING MFS(R) Global Growth 2002 *** 0.75% to 2.20% *** 2001 *** *** *** 2000 *** *** ***
231n Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC. (CONTINUED): ING OpCap Balanced Value 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING PIMCO Total Return 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Capital 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Salomon Bros. Investors Value 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING Scudder International Growth 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING T. Rowe Price Growth Equity 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING UBS Tactical Asset Allocation Division 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** ***
231o Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING PARTNERS, INC. (CONTINUED): ING Van Kampen Comstock Division 2002 *** 0.75% to 2.40% *** 2001 *** *** *** 2000 *** *** *** ING VARIABLE INSURANCE TRUST: ING VP Worldwide Growth 2002 0.02% 0.90% to 2.55% -27.02% to -25.42% 2001 - 0.90% to 2.25% -20.18% to -19.36% 2000 * * * ING VP BOND PORTFOLIO: ING VP Bond 2002 *** 0.80% to 2.25% *** 2001 *** *** *** 2000 *** *** *** ING VARIABLE PORTFOLIOS, INC.: ING VP Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING VP Index Plus LargeCap 2002 0.15% 0.75% to 2.55% -29.03% to -22.23% 2001 2.73% 0.95% to 1.90% ** 2000 ** ** ** ING VP Index Plus MidCap 2002 0.31% 0.75% to 2.55% -14.79 to -12.82% 2001 ** 0.95% to 1.90% ** 2000 ** ** **
231p Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING VARIABLE PORTFOLIOS, INC. (CONTINUED): ING VP Index Plus SmallCap 2002 0.36% 0.75% to 2.55% -15.89% to -13.95% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VP Small Company 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** ING VP Value Opportunity 2002 0.40% 0.75% to 2.55% -28.22% to -26.66% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VARIABLE PRODUCTS TRUST: ING VP Convertible 2002 3.17% 0.95% to 2.55% -9.37% to -7.79% 2001 -10.36% 0.95% to 2.20% ** 2000 ** ** ** ING VP Growth Opportunities 2002 - 0.75% to 2.25% -33.03% to -32.10% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** ING VP International Value 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** ***
231q Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- ING VARIABLE PRODUCTS TRUST (CONTINUED): ING VP Large Company Value 2002 1.28% 0.95% to 2.55% -24.40% to -23.16% 2001 0.92% 0.95% to 2.55% ** 2000 ** ** ** ING VP LargeCap Growth 2002 0.48% 0.95% to 2.25% -36.68% to -35.45% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** ING VP MagnaCap 2002 1.02% 0.90% to 2.25% -24.73% to -23.74% 2001 1.36% 0.90% to 2.25% ** 2000 ** ** ** ING VP MidCap Opportunities 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** *** ING VP SmallCap Opportunities 2002 0.00% 0.75% to 2.25% -45.05% to -44.14% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** INVESCO VARIABLE INVESTMENT FUNDS, INC.: INVESCO VIF - Financial Services 2002 1.15% 0.90% to 2.55% -17.15% to -15.76% 2001 2.70% 0.95% to 2.25% ** 2000 ** ** **
231r Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- INVESCO VARIABLE INVESTMENT FUNDS, INC. (CONTINUED): INVESCO VIF - Health Sciences 2002 - 0.90% to 2.55% -26.42% to -24.98% 2001 3.60% 0.95% to 2.55% ** 2000 ** ** ** INVESCO VIF - Leisure 2002 *** 0.95% to 2.25% *** 2001 *** *** *** 2000 *** *** *** INVESCO VIF - Utilities 2002 1.12% 0.95% to 2.55% -22.62% to -20.91% 2001 3.07% 0.95% to 1.90% ** 2000 ** ** ** JANUS ASPEN SERIES: Janus Aspen Series Balanced 2002 *** 0.75% to 1.10% *** 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Flexible Income 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** Janus Aspen Series Growth 2002 *** 0.75% *** 2001 *** *** *** 2000 *** *** ***
231s Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- JANUS ASPEN SERIES (CONTINUED): Janus Aspen Series Worldwide Growth 2002 0.52% 0.75% to 2.55% -27.58% to 26.20% 2001 0.33% 0.95% to 2.40% ** 2000 ** ** ** OPPENHEIMER VARIABLE ACCOUNTS FUND: Oppenheimer Global Securities 2002 *** 0.75% to 1.10% *** 2001 *** *** *** 2000 *** *** *** Oppenheimer Strategic Bond 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** *** PIMCO VARIABLE INSURANCE TRUST: PIMCO High Yield 2002 8.20% 0.80% to 2.55% -4.80% to -1.63% 2001 7.91% 0.50% to 2.25% 0.30% to 1.57% 2000 * * * PIMCO StocksPLUS Growth and Income 2002 2.69% 0.80% to 2.25% -22.00% to -20.84% 2001 4.22% 0.80% to 2.25% -13.15% to -12.17% 2000 * * * PIONEER VARIABLE CONTRACTS TRUST: Pioneer Equity-Income VCT 2002 *** 0.75% to 0.95% *** 2001 *** *** *** 2000 *** *** ***
231t Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- PIONEER VARIABLE CONTRACTS TRUST (CONTINUED): Pioneer Fund VCT 2002 1.08% 0.80% to 2.55% -21.47% to -19.87% 2001 0.91% 0.95% to 1.90% ** 2000 ** ** ** Pioneer Mid-Cap Value VCT 2002 0.56% 0.75% to 2.25% -13.36% to -12.03% 2001 ** 1.25% to 2.25% ** 2000 ** ** ** Pioneer Small Company VCT 2002 0.03% 0.95% to 2.55% -19.29% to -17.90% 2001 ** 0.95% to 2.55% ** 2000 ** ** ** PROFUNDS VP: ProFund VP Bull 2002 - 0.90% to 2.25% -25.68% to -24.66% 2001 ** 1.25% to 2.25% ** 2000 ** ** ** ProFund VP Europe 30 2002 - 0.90% to 2.25% -27.49% to -26.42% 2001 ** 0.90% to 2.25% ** 2000 ** ** ** ProFund VP Small-Cap 2002 - 0.90% to 2.25% -24.20% to -23.15% 2001 ** 1.25% to 2.25% ** 2000 ** ** **
231u Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- PRUDENTIAL SERIES FUND, INC.: Prudential Jennison 2002 - 0.90% to 2.55% -33.33% to -31.81% 2001 - 0.90% to 2.25% -20.20% to -19.62% 2000 * * * Prudential SP Jennison International Growth 2002 - 0.90% to 2.55% -25.05% to -23.53% 2001 0.24% 0.90% to 2.25% -37.19% to -36.52% 2000 * * * PUTNAM VARIABLE TRUST: Putnam VT Growth and Income 2002 1.62% 0.95% to 2.55% -21.30% to -19.79% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** Putnam VT International Growth and Income 2002 0.28% 0.95% to 2.55% -16.21% to -14.65% 2001 ** 0.95% to 1.90% ** 2000 ** ** ** Putnam VT Voyager Fund II 2002 0.00% 0.95% to 2.55% -31.34% to -30.22% 2001 ** 0.95% to 2.40% ** 2000 ** ** ** TRAVELERS SERIES FUND INC.: Smith Barney High Income 2002 24.02% 1.25% to 1.40% -4.57% to -4.44% 2001 12.01% 1.25% to 1.40% -5.14% to -4.94% 2000 * * *
231v Golden American Life Insurance Company Separate Account B Notes To Financial Statements (continued) 8. FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTMENT EXPENSE RATIO TOTAL RETURN DIVISION INCOME RATIO LOWEST TO HIGHEST LOWEST TO HIGHEST ---------------------------------------------- ------------------ -------------------------- ------------------- TRAVELERS SERIES FUND INC. (CONTINUED): Smith Barney International All Cap Growth 2002 0.95% 1.25% to 1.40% -26.74% to -26.64% 2001 - 1.25% to 1.40% -32.13% to -32.03% 2000 * * * Smith Barney Large Cap Value 2002 3.74% 1.25% to 1.40% -26.46% to -26.30% 2001 1.39% 1.25% to 1.40% -9.45% to -9.33% 2000 * * * Smith Barney Money Market 2002 1.30% 1.25% to 1.40% -0.16% to 0.00% 2001 3.49% 1.25% to 1.40% 2.28% to 2.42% 2000 * * * UBS SERIES TRUST: UBS Tactical Allocation 2002 0.45% 0.95% to 2.55% -25.08% to -23.67% 2001 ** 0.95% to 2.20% ** 2000 ** ** ** * Not provided for 2000. ** As this Division is new in 2001, this data is not meaningful and is therefore not presented. *** As this Division is new in 2002, this data is not meaningful and is therefore not presented
231w PART C -- OTHER INFORMATION ITEM 24: FINANCIAL STATEMENTS AND EXHIBITS FINANCIAL STATEMENTS (a) (1) All financial statements are included in the Prospectus or the Statement of Additional Information as indicated therein (2) Schedules I and IV follow. All other schedules to the consolidated financial statements required by Article 7 of Regulation S-X are omitted because they are not applicable or because the information is included elsewhere in the consolidated financial statements or notes thereto.
SCHEDULE I Summary of Investments - Other than Investments in Affiliates As of December 31, 2002 (Millions) Amount shown on Balance Type of Investment Cost Value* Sheet ----------------------------------------------------------------------------------------------------------- Fixed maturities: U.S. government and government agencies and authorities $ 207.3 $ 209.5 $ 209.5 Public Utilities Securities 335.7 349.3 349.3 U.S. corporate securities 3,012.0 3,182.9 3,182.9 Foreign securities (1) 228.6 242.5 242.5 Mortgage-backed securities 641.7 653.5 653.5 Other asset-backed securities 294.8 298.7 298.7 Less: Fixed maturities pledged to creditors - - - ---------------------------------------------- Total fixed maturities $ 4,720.1 $ 4,936.4 $ 4,936.4 ---------------------------------------------- Equity securities: ---------------------------------------------- Total equity securities 22.9 19.0 19.0 ---------------------------------------------- Short term investments 2.2 2.2 2.2 Mortgage loans 482.4 482.4 482.4 Policy loans 16.0 16.0 16.0 ---------------------------------------------- Total other investments $ 500.6 $ 500.6 $ 500.6 =========================================================================================================== * See Notes 2 and 3 of Notes to Consolidated Financial Statements. (1) The term "foreign" includes foreign governments, foreign political subdivisions, foreign public utilities and all other bonds of foreign issuers. Substantially all of the Company's foreign securities are denominated in U.S. dollars.
SCHEDULE IV Reinsurance Information As of and for the years ended December 31, 2002, 2001 and 2000 (Millions) (Millions) Ceded to Assumed Percentage of Gross Other from Other Net Amount assumed Amount Companies Companies Amount to net - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- AT DECEMBER 31, 2002 Life insurance in Force $ 158.7 $ 90.7 $ - $ 68.0 0.0% AT DECEMBER 31, 2001 Life insurance in Force $ 169.3 $ 94.8 $ - $ 74.5 0.0% AT DECEMBER 31, 2000 Life insurance in Force $ 196.3 $ 105.3 $ - $ 91.0 0.0%
EXHIBITS (b) 1 Resolution of the Board of Directors of Depositor authorizing the establishment of the Registrant (1) 2 Not Applicable 3 (a) Distribution Agreement between the Depositor and Directed Services, Inc. (1) (b) Form of Dealers Agreement (1) (c) Organizational Agreement (1) (d) Form of Assignment Agreement for Organizational Agreement (1) 4 (a) Deferred Combination Variable and Fixed Annuity Group Master Contract (4) (b) Flexible Premium Individual Deferred Combination Variable and Fixed Annuity Contract (4) (c) Flexible Premium Deferred Combination Variable and Fixed Annuity Certificate (4) (d) Flexible Premium Individual Deferred Variable Annuity Contract (4) (e) Individual Retirement Annuity Rider (9) (f) ROTH Individual Retirement Annuity Rider (9) (g) Minimum Guaranteed Accumulation Benefit Rider (REV) (5) (h) Minimum Guaranteed Income Benefit Rider (REV) (8) (i) Minimum Guaranteed Withdrawal Benefit Rider (REV) (5) (j) Minimum Guaranteed Withdrawal Benefit Rider - To be filed by amendment (k) Death Benefit Endorsement No.1 (REV)(7% Solution Enhanced) (5) (l) Death Benefit Endorsement No.2 (Ratchet Enhanced) - To be filed by amendment (m) Death Benefit Endorsement No.3 (REV)(Standard) (5) (n) Death Benefit Endorsement No.4 (Max 7 Enhanced) - To be filed by amendment (o) Death Benefit Endorsement No.5 (Base Death Benefit) (5) (p) Earnings Enhancement Death Benefit Rider (5) (q) Simple Retirement Account Rider (9) (r) 403(b) Rider (9) 5 (a) Individual Deferred Combination Variable and Fixed Annuity Application (b) Group Deferred Combination Variable and Fixed Annuity Enrollment Form (4) 6 (a) Certificate of Amendment of the Restated Articles of Incorporation of Golden American, dated (03/01/95) (1) (b) By-Laws of Golden American, dated (01/07/94) (1) (c) Resolution of the board of directors for Powers of Attorney, dated (04/23/99) (1) 7 Not applicable 8 (a) Administrative Services Agreement between Golden American and Equitable of Iowa companies (1) (b) Service Agreement between Golden American and Directed Services, Inc. (1) (c) Asset Management Agreement between Golden American and ING Investment Management LLC (1) (d) Reciprocal Loan Agreement between Golden American and ING America Insurance Holdings, Inc. (1) (e) Revolving Note Payable between Golden American and SunTrust Bank (1) (f) Surplus Note, dated 12/17/96, between Golden American and Equitable of Iowa Companies (2) (g) Surplus Note, dated 12/30/98, between Golden American and Equitable Life Insurance Company of Iowa (2) (h) Surplus Note, dated 09/30/99, between Golden American and ING AIH (2) (i) Surplus Note, dated 12/08/99, between Golden American and First Columbine Life Insurance Company (1) (j) Surplus Note, dated, 12/30/99, between Golden American and Equitable Life Insurance Company of Iowa (1) (k) Reinsurance Agreement, dated 06/30/00, between Golden American and Equitable Life Insurance Company of Iowa (3) (l) Renewal of Revolving Note Payable between Golden American and SunTrust Bank as of July 31, 2000 and expiring July 31, 2001 (3) (m) Participation Agreement between Golden American and PIMCO Variable Insurance Trust (4) (n) Participation Agreement between Golden American and Prudential Series Fund, Inc. (4) (o) Participation Agreement between Golden American and ING Variable Insurance Trust (4) (p) Amendment to the Participation Agreement between Golden American and Prudential Series Fund, Inc. (4) (q) Reinsurance Agreement, effective 01/01/00, between Golden American and Security Life of Denver International Limited (5) (r) Letter of Credit between Security Life of Denver International Limited and The Bank of New York for the benefit of Golden American (5) (s) Form of Participation Agreement between Golden American and ProFunds (5) (t) Amendment to the Reinsurance Agreement, amended 09/28/01, between Golden American and Security Life of Denver International Limited (6) (u) Renewal of Revolving Note Payable between Golden American and SunTrust Bank as of April 30, 2001 and expiring May 31, 2002 (6) (v) Participation Agreement between Golden American and ING Variable Products Trust (7) (w) Participation Agreement between Golden American and Pioneer Variable Contracts Trust (7) (x) Participation Agreement between Golden American and Fidelity Distributors Corporation (7) (y) Participation Agreement between Golden American and ING Variable Insurance Trust (7) (z) Participation Agreement between Golden American and AIM Variable Insurance Funds, Inc. (7) (aa) Participation Agreement between Golden American and INVESCO Variable Investment Funds, Inc. (7) (ab) Participation Agreement between Golden American and The Prudential Series Fund, Inc. (7) (9) Opinion and Consent of Kimberly J. Smith - To be filed by Amendment (10)(a) Consent of Ernst & Young LLP, Independent Auditors - To be filed by Amendment (b) Consent of Kimberly J. Smith, incorporated in Item 9 of this Part C, together with the Opinion of Kimberly J. Smith. (11) Not applicable (12) Not applicable (13) Schedule of Performance Data (5) (14) Not applicable (15) Powers of Attorney (10) (1) Incorporated herein by reference to the initial filing of a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on February 11, 2000 (File Nos. 333-30180, 811-5626). (2) Incorporated herein by reference to Pre-Effective Amendment No. 2 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on May 10, 2000 (File Nos. 333-30180, 811-5626). (3) Incorporated herein by reference to Post-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on September 13, 2000 (File Nos. 333-30180, 811-5626). (4) Incorporated herein by reference to Post-Effective Amendment No. 2 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on February 26, 2001 (File Nos. 333-30180, 811-5626). (5) Incorporated herein by reference to Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on or about April 23, 2001 (File Nos. 333-30180, 811-5626). (6) Incorporated herein by reference to Post-Effective Amendment No. 4 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on or about October 26, 2001 (File Nos. 333-30180, 811-5626). (7) Incorporated herein by reference to Post-Effective Amendment No. 32 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on or about April 29, 2002 (File Nos. 033-23351, 811-5626). (8) Incorporated herein by reference to Post-Effective Amendment No. 9 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on or about October 28, 2002 (File Nos. 333-30180, 811-5626). (9) Incorporated herein by reference to Post-Effective Amendment No. 34 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 15, 2003 (File Nos. 033-23351, 811-5626). (10) Incorporated by reference to Post-Effective Amendment No. 3 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on June 5, 2003 (File Nos. 333-70600, 811-5626). ITEM 25: DIRECTORS AND OFFICERS OF THE DEPOSITOR Principal Position(s) Name Business Address with Depositor - ---- ---------------- -------------- Keith Gubbay ING Insurance Operations Director and President 5780 Powers Ferry Road Atlanta, GA 30327-4390 Boyd G. Combs ING Insurance Operations Senior Vice President 5780 Powers Ferry Road Atlanta, GA 30327-4390 Jacques de Vaucleroy ING Insurance Operations Senior Vice President 5780 Powers Ferry Road Atlanta, GA 30327-4390 Shaun P. Mathews ING Financial Services Senior Vice President 151 Farmington Avenue Hartford, CT 06156 James R. Gelder ReliaStar Life Insurance Co. Senior Vice President 20 Washington Avenue South Minneapolis, MN 55402 James R. McInnis Golden American Life Ins. Co. Senior Vice President 1475 Dunwoody Drive West Chester, PA 19380 Stephen J. Preston Golden American Life Ins. Co. Senior Vice President 1475 Dunwoody Drive West Chester, PA 19380 Thomas J. McInerney ING Insurance Operations Director 5780 Powers Ferry Road Atlanta, GA 30327-4390 David A. Wheat ING Insurance Operations Chief Financial Officer 5780 Powers Ferry Road Director Atlanta, GA 30327-4390 Mark A. Tullis ING Insurance Operations Director 5780 Powers Ferry Road Atlanta, GA 30327-4390 David L. Jacobson Golden American Life Ins. Co. Vice President, Chief 1475 Dunwoody Drive Compliance Officer and West Chester, PA 19380 Assistant Secretary David S. Pendergrass ING Insurance Operations Vice President and 5780 Powers Ferry Road Treasurer Atlanta, GA 30327-4390 Paula Cludray-Engelke ReliaStar Life Insurance Co. Secretary 20 Washington Avenue South Minneapolis, MN 55402 ITEM 26: PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT The Depositor owned 100% of the stock of a New York company, First Golden American Life Insurance Company of New York ("First Golden"). The primary purpose of First Golden was to offer variable products in the state of New York. First Golden was merged into ReliaStar Life Insurance Company of New York, an affiliate of the Depositor on April 1, 2002. The following persons control or are under common control with the Depositor: DIRECTED SERVICES, INC. ("DSI") - This corporation is a general business corporation organized under the laws of the State of New York, and is wholly owned by ING Groep, N.V. ("ING"). The primary purpose of DSI is to act as a broker-dealer in securities. It acts as the principal underwriter and distributor of variable insurance products including variable annuities as required by the SEC. The contracts are issued by the Depositor. DSI also has the power to carry on a general financial, securities, distribution, advisory or investment advisory business; to act as a general agent or broker for insurance companies and to render advisory, managerial, research and consulting services for maintaining and improving managerial efficiency and operation. DSI is also registered with the SEC as an investment adviser. The registrant is a segregated asset account of the Company and is therefore owned and controlled by the Company. All of the Company's outstanding stock is owned and controlled by ING. Various companies and other entities controlled by ING may therefore be considered to be under common control with the registrant or the Company. Such other companies and entities, together with the identity of their controlling persons (where applicable), are set forth on the following organizational chart. Subsidiaries of ING Groep N.V. incorporated herein by reference to Item 26 in Post-Effective Amendment No. 28 to Registration Statement on Form N-4 (File No. 33-75988), as filed on April 10, 2003 for Variable Annuity Account C of ING Life Insurance and Annuity Company. ITEM 27: NUMBER OF CONTRACT OWNERS As of October 31, 2003, there are 157,913 qualified contract owners and 166,265 non-qualified contract owners in Golden American's Separate Account B. ITEM 28: INDEMNIFICATION Golden American shall indemnify (including therein the prepayment of expenses) any person who is or was a director, officer or employee, or who is or was serving at the request of Golden American as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise for expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him with respect to any threatened, pending or completed action, suit or proceedings against him by reason of the fact that he is or was such a director, officer or employee to the extent and in the manner permitted by law. Golden American may also, to the extent permitted by law, indemnify any other person who is or was serving Golden American in any capacity. The Board of Directors shall have the power and authority to determine who may be indemnified under this paragraph and to what extent (not to exceed the extent provided in the above paragraph) any such person may be indemnified. Golden American or its parents may purchase and maintain insurance on behalf of any such person or persons to be indemnified under the provision in the above paragraphs, against any such liability to the extent permitted by law. Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the Registrant, as provided above or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification by the Depositor is against public policy, as expressed in the Securities Act of 1933, and therefore may be unenforceable. In the event that a claim of such indemnification (except insofar as it provides for the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted against the Depositor by such director, officer or controlling person and the SEC is still of the same opinion, the Depositor or 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 of whether such indemnification by the Depositor is against public policy as expressed by the Securities Act of 1933 and will be governed by the final adjudication of such issue. ITEM 29: PRINCIPAL UNDERWRITER (a) At present, Directed Services, Inc. ("DSI"), the Registrant's Distributor, also serves as principal underwriter for all contracts issued by Golden American. DSI is the principal underwriter for Separate Account A, Separate Account B, Equitable Life Insurance Company of Iowa Separate Account A, ReliaStar Life Insurance Company of New York Separate Account NY-B, Alger Separate Account A of Golden American and the ING Investors Trust (formerly known as The GCG Trust). (b) The following information is furnished with respect to the principal officers and directors of Directed Services, Inc., the Registrant's Distributor. The principal business address for each officer and director following is 1475 Dunwoody Drive, West Chester, PA 19380-1478, unless otherwise noted. Name and Principal Positions and Offices Business Address with Underwriter - -------------------- --------------------- James R. McInnis Director and President Alan G. Hoden Director Stephen J. Preston Director David S. Pendergrass Vice President and Treasurer ING Insurance Operations 5780 Powers Ferry Road Atlanta, GA 30327-4390 David L. Jacobson Senior Vice President Kimberly J. Smith Secretary (c) 2002 Net Name of Underwriting Compensation Principal Discounts and on Brokerage Underwriter Commissions Redemption Commissions Compensation - ----------- ------------ ------------- ----------- ------------ DSI $287,208,066 $0 $0 $0 ITEM 30: LOCATION OF ACCOUNTS AND RECORDS Accounts and records are maintained by Golden American Life Insurance Company at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478, ING Americas at 5780 Powers Ferry Road, N.W., Atlanta, GA 30327-4390 and by Equitable Life Insurance Company of Iowa, an affiliate, at 909 Locust Street, Des Moines, Iowa 50309. ITEM 31: MANAGEMENT SERVICES None. ITEM 32: UNDERTAKINGS (a) Registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as it is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old so long as payments under the variable annuity contracts may be accepted. (b) Registrant hereby undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and, (c) Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. REPRESENTATIONS 1. The account meets the definition of a "separate account" under federal securities laws. 2. Golden American Life Insurance Company hereby represents that the fees and charges deducted under the Contract described in the Prospectus, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred and the risks assumed by the Company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Separate Account B, has duly caused this Amendment to Registration Statement to be signed on its behalf in the City of West Chester, Commonwealth of Pennsylvania, on the 12th day of November, 2003. SEPARATE ACCOUNT B (Registrant) By: GOLDEN AMERICAN LIFE INSURANCE COMPANY (Depositor) By: -------------------- Keith Gubbay* President Attest: /s/ Linda E. Senker ------------------------ Linda E. Senker Counsel of Depositor As required by the Securities Act of 1933, this Amendment to Registration Statement has been signed by the following persons in the capacities indicated on November 12, 2003. Signature Title - --------- ----- President - -------------------- Keith Gubbay* DIRECTORS OF DEPOSITOR - ---------------------- David A. Wheat* - ---------------------- Thomas J. McInerney* - ---------------------- Mark A. Tullis* Attest: /s/ Linda E. Senker ------------------------ Linda E. Senker Counsel of Depositor *Executed by Linda E. Senker on behalf of those indicated pursuant to Power of Attorney. EXHIBIT INDEX ITEM EXHIBIT PAGE # - ---- ------- ------ 5(a) Individual Deferred Combination Variable and Fixed Annuity Application EX-99.B5A EX-99.B5A 3 gacdf-1109app.txt DEFERRED APPLICATION Annuities ING GoldenSelect Deferred Variable Annuity Customer Data Form for the States of: Alabama Missouri Alaska Nebraska Arizona Nevada Arkansas New Jersey California New Mexico Colorado Ohio Delaware Oklahoma District of Columbia Oregon Florida Pennsylvania Georgia Rhode Island Hawaii South Carolina Idaho South Dakota Indiana Tennessee Iowa Texas Kansas Utah Kentucky Vermont Louisiana Virginia Maine Washington Michigan West Virginia Minnesota Wisconsin Mississippi Wyoming ING GOLDENSELECT(r) ANNUITIES ING (Lion Logo) Issued by Golden American Life Insurance Company Distributed by Directed Services, Inc., member NASD. GOOD ORDER CHECKLIST - -------------------------------------------------------------------------------- PAGE 1 _ The Name, Trust Date (if applicable), Address, Date of Birth, Social Security Number/Tax Identification Number is provided for each individual/entity named. PAGE 2 _ The Primary or Contingent status for each named Beneficiary is entered in section 3. _ Each Beneficiary is named individually. If there are any trust designations, the trust name and the trust date is included. _ Designated Beneficiary percentages are clearly entered and total 100% for all Primary Beneficiaries and 100% for all Contingent Beneficiaries. _ If a separate sheet containing additional Beneficiary information is needed, that sheet must be signed and dated by the owner. PAGE 3 _ If a transfer is required, the approximate transfer amount is entered in section 4. If there are multiple transfers, each approximate transfer amount is entered separately. _ The initial premium meets the selected product's minimum requirements. _ Select one product, death benefit and optional living benefit rider. _ Enhanced Death Benefits or Earnings Multiplier cannot be selected with Joint Owners. _ If Telephone Reallocation Authorization is selected, the owner has initialed where requested to authorize the agent. The name and social security number for each additional person is entered in section 6. PAGE 4 _ The tax type for new annuity (ie: Non-Qualified, IRA, Simple IRA, TSA) is indicated in section 7, and any applicable conversion/establishment dates provided. _ If a replacement is involved, the appropriate transfer and state replacement forms are completed and submitted with this form. PAGE 5 _ All allocations (fixed and variable) total 100% of the initial investment amount. Do not complete this section if an Optional Asset Allocation Model Portfolio is selected. PAGE 6 _ If DCA is desired, the DCA target fund allocations total 100%. Source Funds total 100%. PAGE 7 _ One Optional Asset Allocation Model Portfolio is chosen. The selection is clearly marked in section 11. 100% of the initial investment amount will be allocated into the one model portfolio chosen. Sections 9 and 10 should not be completed if an asset allocation model is used. PAGE 8 _ For any of the optional automatic programs, all of the information requested is submitted with this form. PAGE 9 _ The owner has signed and dated section 14, including the City and State where this customer data form was signed. If this is different from the owners resident state, an explanation is provided at the top of page 1. _ If this form is signed by a Power of Attorney, Legal Guardian, etc, a copy of the appropriate supporting documentation is provided confirming the signer's ability to act on behalf of the owner. PAGE 10 _ The name, social security number, phone number, broker/dealer branch, and signature for each agent is provided. _ If more than one agent is listed, the agent commission split is entered and totals 100%. ________________________________________________________________________________ CUSTOMER SERVICE CENTER MAILING INSTRUCTIONS: Send all completed and signed documents to : For Regular Mail: ING ANNUITIES For Overnight Delivery:ING ANNUITIES Attn: New Business Attn: New Business P.O. Box 9271 909 Locust Street Des Moines, IA 50306-9271 Des Moines, IA 50309-2899 To contact our Licensing Department please call: 800-235-5695 To contact our Client Services Department please call: 800-366-0066 To contact our Sales Desk please call: INDEPENDENT DIVISION NYSE/REGIONAL DIVISION 800-344-6860 800-243-3706 ________________________________________________________________________________ ING (Lion Logo) GOLDEN AMERICAN LIFE INSURANCE COMPANY PO Box 9271 Des Moines, IA 50306-9271 Phone: (800) 366-0066 Overnight Delivery: ING Annuities 909 Locust Street Des Moines, IA 50309-2899 ING GOLDENSELECT DEFERRED VARIABLE ANNUITY CUSTOMER DATA FORM ________________________________________________________________________________ FOR AGENT USE ONLY: Client's Account Number:____________________________________ If this customer data form is being signed in a state other than the owner's resident state, please specify the state where the business was solicited and the purpose of the visit._______________________________________________________ ________________________________________________________________________________ 1(A) OWNER (Please provide supporting documentation for all non-natural owners) Name:_____________________________________________ Trust Date:__________________ SSN or Tax ID:___________________________ DOB:__________________ _ Male _ Female Permanent Street Address:_______________________________________________________ City:______________________________________ State:_________________ Zip:________ Phone:_____________________________________ EMail Address:______________________ ________________________________________________________________________________ 1(B) JOINT OWNER (Standard Death Benefit only option; Earnings Multiplier not available) Relationship to Owner:__________________________________________________________ Name:_____________________________________________ Trust Date:__________________ SSN or Tax ID:___________________________ DOB:__________________ _ Male _ Female Permanent Street Address:_______________________________________________________ City:______________________________________ State:_________________ Zip:________ Phone:_____________________________________ EMail Address:______________________ ________________________________________________________________________________ 2(A) ANNUITANT (If other than owner) Name:___________________________________________________________________________ SSN or Tax ID:___________________________ DOB:__________________ _ Male _ Female Permanent Street Address:_______________________________________________________ City:______________________________________ State:_________________ Zip:________ Phone:_____________________________________ EMail Address:______________________ (A) ________________________________________________________________________________ 2(B) CONTINGENT ANNUITANT (Optional) Name:___________________________________________________________________________ SSN or Tax ID:___________________________ DOB:__________________ _ Male _ Female Permanent Street Address:_______________________________________________________ City:______________________________________ State:_________________ Zip:________ Phone:_____________________________________ EMail Address:______________________ ________________________________________________________________________________ GA-CDF-1109 Page 1 of 10 126030 11/01/2003 ________________________________________________________________________________ 3 BENEFICIARY(S) Must be Completed RESTRICTED BENEFICIARY. If selected, complete a "Restricted Beneficiary" form and submit with this form. ________________________________________________________________________________ _ PRIMARY BENEFICIARY Name:_____________________________________ Date of Birth____________ Percent____ SSN or Tax ID:____________________________ Relationship to Owner________________ Address:________________________________________________________________________ ________________________________________________________________________________ _ PRIMARY _ CONTINGENT BENEFICIARY 2 Name:_____________________________________ Date of Birth____________ Percent____ SSN or Tax ID:____________________________ Relationship to Owner________________ Address:________________________________________________________________________ ________________________________________________________________________________ _ PRIMARY _ CONTINGENT BENEFICIARY 3 Name:_____________________________________ Date of Birth____________ Percent____ SSN or Tax ID:____________________________ Relationship to Owner________________ Address:________________________________________________________________________ ________________________________________________________________________________ _ PRIMARY _ CONTINGENT BENEFICIARY 4 Name:_____________________________________ Date of Birth____________ Percent____ SSN or Tax ID:____________________________ Relationship to Owner________________ Address:________________________________________________________________________ *For additional Beneficiary designations, attach a separate page, signed and dated by the owner(s). *Beneficiaries will be split equally if no percentages are provided. ________________________________________________________________________________ SAMPLE BENEFICIARY DESIGNATIONS Be sure to use given names such as "Mary M. Doe", not "Mrs. John Doe", and include the address and relationship of the beneficiary or beneficiaries to the owner. The following designations may be helpful to you: | | Name Relationship to Owner Percent - -------------------------------------------------------------------------------- One Primary | Beneficiary | Mary M. Doe Sister 100% - -------------------|------------------------------------------------------------ Two Primary | Beneficiaries | Jane J. Doe Mother 50% | John J. Doe Father 50% - -------------------|------------------------------------------------------------ One Primary | Beneficiary | Jane J. Doe Wife 100% One Contingent | John J. Doe Son 100% - -------------------|------------------------------------------------------------ Estate | Estate of John Doe - -------------------|------------------------------------------------------------ Trust | ABC Trust Trust Name, | dtd 1/1/85 dtd (Date of Trust | Agreement) - -------------------|------------------------------------------------------------ Testamentary Trust | Trust created by Testamentary Trust | the (Trust established | Last Will and Testament | within the owners will) | of John Doe - -------------------------------------------------------------------------------- ________________________________________________________________________________ GA-CDF-1109 Page 2 of 10 126030 11/01/2003 ________________________________________________________________________________ 4 INITIAL INVESTMENT Initial Investment (Please make any checks payable to Golden American Life Insurance Company) _ Initial Premium Paid $________________________________________________________ _ Estimated amount of Transfer/1035 Exchange $__________________________________ ________________________________________________________________________________ 5 PRODUCT SELECTION Product (Must Select One) _ Premium Plus _ ES II _ Landmark _ Access(Not available in the state of OR) - -------------------------------------------------------------------------------- Death Benefit Option (Select One. If a death benefit is not chosen, the death benefit will be the Standard Death Benefit.) _ Standard (This is the only benefit option available to Joint Owners) _ Quarterly Ratchet _ MAX 7(In the state of WA this benefit is named MAX 5.5) - -------------------------------------------------------------------------------- Optional Earnings Multiplier _ (Not available for Joint Owners or in the state of WA) - -------------------------------------------------------------------------------- Optional Living Benefit (May Select One) _ Minimum Guaranteed Accumulation Benefit 10YR (MGAB10) (Not available in the state of OR) _ Minimum Guaranteed Income Benefit (MGIB) (Not available in the states of MN and OR) _ Minimum Guaranteed Withdrawal Benefit(MGWB) (Not available in the state of OR) (not available with Premium Plus) ________________________________________________________________________________ 6 TELEPHONE REALLOCATION AUTHORIZATION I authorize Golden American Life Insurance Company (the Company) to act upon reallocation instructions, given by electronic means or voice command from the agent that signs in section 15 and/or the following individuals listed below upon furnishing their social security number or alternative identification number. To authorize the agent, owner must initial: _____________________ Provide the name and social security number of other authorized individuals below: Name_____________________________ Social Security Number________________________ Name_____________________________ Social Security Number________________________ Neither the Company nor any person authorized by the Company will be responsible for any claim, loss, liability, or expense in connection with reallocation instructions received by electronic means or voice command from such person if the Company or other such person acted on such electronic means or voice command in good faith in reliance upon this authorization. The Company will continue to act upon this authorization until such time as the person indicated above is no longer affiliated with the broker/dealer under which my contract was purchased or until such time as I notify the Company in writing of a change in instructions. Note: If the authorized person's social security number is not provided, the individual will not be authorized. ________________________________________________________________________________ GA-CDF-1109 Page 3 of 10 126030 11/01/2003 ________________________________________________________________________________ 7 PLAN TYPE _ Non-Qualified _ 1035 Exchange ________________________________________________________________________________ _ IRA _ IRA Transfer _ IRA Rollover from Qualified Plan _ SEP-IRA _ 403(b) _ 457 Plan _ Qualified Other_________ Indicate contribution amount and appropriate tax year___________________________ _ Roth IRA If transfer, provide original conversion/establishment date and amount__________ _ Simple IRA If transfer, provide original establishment date and amount_____________________ ________________________________________________________________________________ 8 IMPORTANT NOTICE REGARDING REPLACEMENT Do you currently have any existing annuity or life insurance policies or coverage? _ Yes (Please continue below) _ No This purchase may involve discontinuing or changing an existing policy or contract. If so, a replacement is occurring. Financed purchases are also considered replacements. A replacement occurs when a new policy or contract is purchased and in connection with the sale you discontinue making premium payments on the existing policy or contract or an existing policy or contract is surrendered, forfeited, assigned to the replacing insurer or otherwise terminated or used in a financed purchase. A financed purchase occurs when the purchase of a new life insurance policy or an annuity contract involves the use of funds obtained by the withdrawal or surrender of or by borrowing some or all of the policy values including accumulated dividends of an existing policy to pay all or part of any premium or payment due on the new policy. A financed purchase is a replacement. You should carefully consider whether a replacement is in your best interest. You will pay acquisition costs and there may be surrender costs deducted from your policy or contract. You may be able to make changes to your existing policy or contract to meet your insurance needs at less cost. A financed purchase will reduce the value of your existing policy and may reduce the amount paid upon the death of the insured. We want you to understand the effects of replacements before you make your purchase decision and ask that you answer the following questions. 1. Are you considering discontinuing making premium payments, surrendering, forfeiting, assigning to the insurer, or otherwise terminating your existing policy or contract? _ Yes _ No 2. Are you considering using funds from your existing policies or contracts to pay premiums due on this new policy or contract? _ Yes _ No If you answered "Yes" to either of the above questions, please complete and return with this form a copy of any state replacement form(s), if applicable. I do not want this notice read aloud to me, _____________ (Owner/Applicants must initial here ONLY if they do not want the above notice read aloud.) ________________________________________________________________________________ GA-CDF-1109 Page 4 of 10 126030 11/01/2003 ________________________________________________________________________________ 9 INITIAL ALLOCATIONS Enter initial allocations in whole percentages. Do not complete this section if an Optional Asset Allocation Model Portfolio is chosen. Please see section 11 for Optional Asset Allocation Model Portfolio selection. VARIABLE ALLOCATIONS ____% A I M V.I. Dent Demographic Trends1 ____% ING MFS Total Return1 ____% Colonial Small Cap Value ____% ING PIMCO Core Bond1,2 ____% Fidelity VIP Equity-Income1 ____% ING Salomon Bros Aggr Growth1 ____% Fidelity VIP Growth1 ____% ING Salomon Bros All Cap1 ____% ING AIM Mid Cap Growth1 ____% ING Salomon Bros Investors1 ____% ING Alliance Mid Cap Growth1 ____% ING T.Rowe Price Capital App1 ____% ING American Funds Growth1 ____% ING T.Rowe Price Equity Income1 ____% ING American Funds Growth-Income1 ____% ING UBS US Balanced1 ____% ING American Funds International1 ____% ING VP Bond Portfolio1,2 ____% ING Cap Guardian Large Cap Value1 ____% ING VP Growth Opportunities1 ____% ING Cap Guardian Mangd Glbl1 ____% ING VP Index Plus LargeCap1 ____% ING Cap Guardian Small Cap1 ____% ING VP Magnacap1 ____% ING Developing World Portfolio1 ____% ING VP SmallCap Opp1 ____% ING Eagle Asset Value Equity1 ____% ING VP Worldwide Growth1 ____% ING FMR Diversified Mid Cap1 ____% ING VanKampen Equity Growth1 ____% ING Goldman Sachs Internet Toll1 ____% ING VanKampen Glbl Franchise1 ____% ING Hard Assets1 ____% ING VanKampen Gr and Income1 ____% ING International1 ____% ING VanKampen Real Estate1 ____% ING Janus Growth and Income1 ____% INVESCO VIF Fin Services ____% ING Janus Special Equity1 ____% INVESCO VIF Health Sciences ____% ING Jennison Equity Opportunities1 ____% INVESCO VIF Leisure ____% ING JPMorgan Int'l1 ____% INVESCO VIF Utilities ____% ING JPMorgan Small Cap Equity1 ____% Jennison Portfolio1 ____% ING Julius Baer Foreign1 ____% PIMCO High Yield Portfolio ____% ING Limited Maturity Bond1,2 ____% Pioneer Fund VCT Portfolio1 ____% ING Liquid Assets1,2 ____% Pioneer Mid-Cap Value VCT ____% ING Marsico Growth1 ____% ProFund VP Bull ____% ING Mercury Focus Value1 ____% ProFund VP Europe 30 ____% ING Mercury Fundamental Growth1 ____% ProFund VP Rising Rates Opp1,2 ____% ING MFS Mid Cap Growth1 ____% ProFund VP Small-Cap ____% ING MFS Research1 ____% SP Jennison Int'l Growth1 FIXED ALLOCATIONS Enter the allocation percentage and the fixed interest period. Check availability prior to selection. ____% 6 Month DCA ____% __________ Year Fixed ____% __________ Year Fixed ____% __________ Year Fixed ____% __________ Year Fixed ____% __________ Year Fixed 100% Initial Allocation Total Do the variable and fixed allocations total 100%? 1 The available share class is subject to distribution and/or service (12b-1) fees. 2 Transfers to and from and amounts invested in these portfolios may affect death benefit and living benefit guarantees. ________________________________________________________________________________ GA-CDF-1109 Page 5 of 10 126030 11/01/2003 ________________________________________________________________________________ 10 DOLLAR COST AVERAGING (DCA) OPTIONAL 1) DCA SOURCE FUNDS (From) - A minimum of $1,200 must be allocated into one of the following source funds. Enter the DCA source fund allocation in whole percentages below. ____% ING Limited Maturity Bond1,2 ____% ING Liquid Assets1,2 ____% 1 YR DCA ____% 6-Month DCA ________________________________________________________________________________ 2) DCA ALLOCATIONS (To) - Specify in whole percentages the Account Divisions for the DCA transfers. |____% A I M V.I. Dent Demographic Trends1 | ____% ING MFS Total Return1 |____% Colonial Small Cap Value | ____% ING PIMCO Core Bond1,2 |____% Fidelity VIP Equity-Income1 | ____% ING Salomon Bros Aggr Growth1 |____% Fidelity VIP Growth1 | ____% ING Salomon Bros All Cap1 |____% ING AIM Mid Cap Growth1 | ____% ING Salomon Bros Investors1 |____% ING Alliance Mid Cap Growth1 | ____% ING T.Rowe Price Capital App1 |____% ING American Funds Growth1 | ____% ING T.Rowe Price Equity Inc1 |____% ING American Funds Growth-Income1 | ____% ING UBS US Balanced1 |____% ING American Funds International1 | ____% ING VP Bond Portfolio1,2 |____% ING Cap Guardian Large Cap Value1 | ____% ING VP Growth Opportunities1 |____% ING Cap Guardian Mangd Glbl1 | ____% ING VP Index Plus LargeCap1 |____% ING Cap Guardian Small Cap1 | ____% ING VP Magnacap1 |____% ING Developing World Portfolio1 | ____% ING VP SmallCap Opp1 |____% ING Eagle Asset Value Equity1 | ____% ING VP Worldwide Growth1 |____% ING FMR Diversified Mid Cap1 | ____% ING VanKampen Equity Growth1 |____% ING Goldman Sachs Internet Toll1 | ____% ING VanKampen Glbl Franchise1 |____% ING Hard Assets1 | ____% ING VanKampen Gr and Income1 |____% ING International1 | ____% ING VanKampen Real Estate1 |____% ING Janus Growth and Income1 | ____% INVESCO VIF Fin Services |____% ING Janus Special Equity1 | ____% INVESCO VIF Health Sciences |____% ING Jennison Equity Opportunities1 | ____% INVESCO VIF Leisure |____% ING JPMorgan Int'l1 | ____% INVESCO VIF Utilities |____% ING JPMorgan Small Cap Equity1 | ____% Jennison Portfolio1 |____% ING Julius Baer Foreign1 | ____% PIMCO High Yield Portfolio |____% ING Limited Maturity Bond1,2 | ____% Pioneer Fund VCT Portfolio1 |____% ING Liquid Assets1,2 | ____% Pioneer Mid-Cap Value VCT |____% ING Marsico Growth1 | ____% ProFund VP Bull |____% ING Mercury Focus Value1 | ____% ProFund VP Europe 30 |____% ING Mercury Fundamental Growth1 | ____% ProFund VP Rising Rates Op1,2 |____% ING MFS Mid Cap Growth1 | ____% ProFund VP Small-Cap |____% ING MFS Research1 | ____% SP Jennison Int'l Growth1 ________________________________________________________________________________ 100% DCA Allocation Total Do the DCA allocations total 100%? ________________________________________________________________________________ 1 The available share class is subject to distribution and/or service (12b-1) fees. 2 Transfers to and from and amounts invested in these portfolios may affect death benefit and living benefit guarantees. ________________________________________________________________________________ GA-CDF-1109 Page 6 of 10 126030 11/01/2003 ________________________________________________________________________________ 11 OPTIONAL ASSET ALLOCATION MODEL PORTFOLIOS (Select One) Asset Allocation Model Portfolios are designed to help individuals choose investment options when purchasing a variable insurance product. The goal of the process is to maximize total investment return at a given level of risk by diversifying a contract owner's portfolio among different asset classes, namely stocks, bonds and money market instruments. For allocations other than the models shown below, please complete section 9 of this form. Select one asset allocation model portfolio below. 100% of your initial investment will be invested as described for the model you choose. PLEASE ALLOCATE 100% OF MY INITIAL INVESTMENT AMOUNT INTO THE FOLLOWING MODEL PORTFOLIO: (Select one below) ________________________________________________________________________________ _ PORTFOLIO 1 _ CONSERVATIVE Small/Mid Cap 5% Pioneer Mid-Cap Value VCT Portfolio1 Large Cap Growth 5% Fidelity VIP Growth Portfolio1 Large Cap Value 10% ING T. Rowe Price Equity Income Portfolio1 Bonds 45% ING PIMCO Core Bond Portfolio1,2 Stability of Principal 35% ING Liquid Assets Portfolio1,2 ________________________________________________________________________________ _ PORTFOLIO 2 _ MODERATELY CONSERVATIVE Global/International 5% SP Jennison International Growth Portfolio1 Small/Mid Cap 10% Pioneer Mid-Cap Value VCT Portfolio1 Large Cap Growth 10% Fidelity VIP Growth Portfolio1 Large Cap Value 15% ING T. Rowe Price Equity Income Portfolio1 Bonds 45% ING PIMCO Core Bond Portfolio1,2 Stability of Principal 15% ING Liquid Assets Portfolio1,2 ________________________________________________________________________________ _ PORTFOLIO 3 _ MODERATE Global/International 10% SP Jennison International Growth Portfolio1 Small/Mid Cap 15% Pioneer Mid-Cap Value VCT Portfolio1 Large Cap Growth 20% Fidelity VIP Growth Portfolio1 Large Cap Value 20% ING T. Rowe Price Equity Income Portfolio1 Bonds 35% ING PIMCO Core Bond Portfolio1,2 ________________________________________________________________________________ _ PORTFOLIO 4 _ MODERATELY AGGRESSIVE Global/International 15% SP Jennison International Growth Portfolio1 Small/Mid Cap 20% Pioneer Mid-Cap Value VCT Portfolio1 5% ING JPMorgan SmallCap Equity Portfolio1 Large Cap Growth 25% Fidelity VIP Growth Portfolio1 Large Cap Value 20% ING T. Rowe Price Equity Income Portfolio1 Bonds 15% ING PIMCO Core Bond Portfolio1,2 ________________________________________________________________________________ _ PORTFOLIO 5 _ AGGRESSIVE Global/International 20% SP Jennison International Growth Portfolio1 Small/Mid Cap 20% Pioneer Mid-Cap Value VCT Portfolio1 10% ING JPMorgan Small Cap Equity Portfolio1 Large Cap Growth 30% Fidelity VIP Growth Portfolio1 Large Cap Value 20% ING T. Rowe Price Equity Income Portfolio1 ________________________________________________________________________________ If you wish to participate in account rebalancing, please complete section 12. ________________________________________________________________________________ 1 The available share class is subject to distribution and/or service (12b-1) fees. 2 Transfers to and from and amounts invested in these portfolios may affect death benefit and living benefit guarantees. ________________________________________________________________________________ GA-CDF-1109 Page 7 of 10 126030 11/01/2003 ________________________________________________________________________________ 12 OPTIONAL AUTOMATIC PROGRAMS ________________________________________________________________________________ OPTIONAL SYSTEMATIC PARTIAL WITHDRAWALS (Select one below) To have your withdrawals deposited into your bank account, please complete the bank account information below. _ Maximum Amount available free of deferred sales charge. _ Specified Systematic Payment $__________ ($100.00 Minimum) _ Specified Percentage _____________% Frequency: _ Monthly _ Quarterly _ Annually Day of Month Beginning the month of Year - -------------------------------------------------------------------------------- Withdrawals must wait 30 days after the investment date to begin. _ Check here if you want the Company to process the first withdrawal on the earliest date after the initial payment has been received. All subsequent payments will be processed on the date provided above. _ Check here if you do not wish to reduce the dollar amount of this withdrawal in the event of a surrender charge. (Please note that your initial dollar amount cannot be higher than the maximum allowed. Going over the maximum allowed may incur a surrender charge and may have an adverse effect on the death benefit amounts). ________________________________________________________________________________ OPTIONAL ACCOUNT REBALANCING PROGRAM (May not use with DCA) Automatic Allocation Rebalancing will occur on the last business day of the next scheduled rebalancing date. Please consult your prospectus for details regarding this feature as well as restrictions, minimum or maximum limitations, fees and other applicable information. Automatic Allocation Rebalancing does not apply to the Fixed Allocation(s) and cannot be elected if you participate in Dollar Cost Averaging. The percentages will be proportionally recalculated for subsequent reallocations if you have chosen a Fixed Allocation Election. Any subsequent reallocation, add-on or partial withdrawal you direct, other than on a pro rata basis, will terminate this program. Please rebalance my portfolio to the allocations on this form: _ Quarterly _ Semi-Annually _ Annually ________________________________________________________________________________ OPTIONAL PRE-AUTHORIZED PAYMENT PLAN (Complete bank account information below) I understand that all payments made will be allocated pro rata according to the initial allocations entered on this form. I understand and agree to indemnify the Company for any costs incurred should there be insufficient funds in the below listed account. I further understand that the Company may sell sufficient investments in the divisions underlying my contract to recover the full amount of the debit entry. Deduction Frequency: _ Monthly _ Quarterly _ Annually Amount:$_____________________________ Start Date_____________________________ ________________________________________________________________________________ BANK ACCOUNT INFORMATION Please verify this information with your bank bank prior to submission. I hereby authorize the Company to initiate a debit/credit entry(ies) to the account indicated below and in the amount and frequency listed above.This authorization shall remain in force until I give the Company written notice of termination of this authorization. A voided check or savings account deposit slip is required. Bank Account Owner Name_________________________________________________________ Bank Account Joint Owner Name (if applicable)___________________________________ Bank Name__________________________ Bank Telephone Number_______________________ Bank Address____________________________________________________________________ City_______________________________ State______________________ Zip_____________ ABA/Routing Number_________________ Account Number______________________________ _Checking Account_ Savings Account - --------------------------------------- |ATTACH VOIDED CHECK/ DEPOSIT SLIP HERE| - --------------------------------------- ________________________________________________________________________________ GA-CDF-1109 Page 8 of 10 126030 11/01/2003 ________________________________________________________________________________ 13 STATE REQUIRED NOTICES Below are notices that apply only in certain states. Please read the following carefully to see if any apply in your state. Colorado, Kentucky, Louisiana, New Mexico, Ohio, Oklahoma, Pennsylvania: "Any person who knowingly and with intent to defraud any insurance company or any other person, files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading information concerning any fact material thereto, commits a fraudulent insurance act which is a crime and subjects such person to criminal and civil penalties." California: For your protection, California law requires the following notice: "Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in a state prison." California Reg. 789.8: The sale or liquidation of any asset in order to buy insurance, either life insurance or an annuity contract, may have tax consequences. Terminating any life insurance policy or annuity contract may have early withdrawal penalties or other costs or penalties, as well as tax consequences. You may wish to consult independent legal or financial advice before the sale or liquidation of any asset and before the purchase of any life insurance or annuity contract. Arkansas, Florida: "Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison." Maine, Tennessee and Washington DC: "It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties may include imprisonment, fines or denial of insurance benefits." New Jersey: "Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties." Virginia: "A person who, with the intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement may have violated the state law." ________________________________________________________________________________ 14 SIGNATURES AND ACKNOWLEDGEMENTS (Please read carefully and sign below) By signing below, I acknowledge receipt of the Prospectus. I agree that, to the best of my knowledge and belief, all statements and answers in this form are complete and true and may be relied upon in determining whether to issue the applied for variable annuity. Only the owner and Golden American Life Insurance Company have the authority to modify this form. Variable Annuities and the underlying series shares or securities which fund them are not insured by the FDIC or any other agency. They are not deposits or other obligations of any bank and are not bank guaranteed. They are also subject to market fluctuation, investment risk and possible loss of principal invested. I understand that when based on the investment experience of the Separate Account Division, the variable annuity cash surrender values may increase or decrease on any day and that no minimum value is guaranteed. The variable annuity applied for is in accord with my anticipated financial objectives. I understand that the value allocated to any Account subject to a Market Value Adjustment may increase or decrease if surrendered or withdrawn prior to a specified date(s) as stated in the contract. My signature certifies, under penalty of perjury, that the taxpayer identification number provided is correct. Unless and until you are otherwise notified, I am not subject to backup withholding because: I am exempt; or I have not been notified that I am subject to backup withholdings resulting from failure to report all interest dividends; or I have been notified that I am no longer subject to backup withholding. (Strike out the preceding sentence if subject to backup withholding.) The IRS does not require my consent to any provision of this document other than the certifications required to avoid backup withholding. Owner Signature_________________________________________________________________ Signed at (City, State)__________________________________ Date__________________ Joint Owner Signature (if applicable)___________________________________________ Signed at (City, State)__________________________________ Date__________________ Annuitant Signature (If other than owner)_______________________________________ Signed at (City, State)__________________________________ Date__________________ ________________________________________________________________________________ GA-CDF-1109 Page 9 of 10 126030 11/01/2003 ________________________________________________________________________________ 15 AGENT INFORMATION Do you have reason to believe that the contract applied for will replace any existing annuity or life insurance coverage? _ Yes _ No (If "Yes", return with this form a completed copy of any state replacement form(s), if applicable.) Premium Plus Only: _ Producer Contract _ ING Employee Contract Compensation Alternative (select one-please verify with your Broker/Dealer that the option you select is available): _ A _ B _ C _ D _ E _ Check here if there are multiple agents on this contract. Split: for Agent #1____________%, Agent #2____________%, Agent #3____________% Please Note: Compensation will be split equally if no percentage is indicated. Agent #1 will receive all correspondence regarding the policy. AGENT #1 Print Name__________________________________ Signature__________________________ SSN_________________________________________ Agent Phone________________________ FL License #/Broker Code____________________ Broker/Dealer Branch_______________ AGENT #2 Print Name Signature Print Name__________________________________ Signature__________________________ SSN_________________________________________ Agent Phone________________________ FL License #/Broker Code____________________ Broker/Dealer Branch_______________ AGENT #3 Print Name__________________________________ Signature__________________________ SSN_________________________________________ Agent Phone________________________ FL License #/Broker Code____________________ Broker/Dealer Branch_______________ ________________________________________________________________________________ 16 SPECIAL REMARKS 16 ________________________________________________________________________________ GA-CDF-1109 Page 10 of 10 126030 11/01/2003 -----END PRIVACY-ENHANCED MESSAGE-----