-----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, QzYPIPMsrJovdIJx3YBLKkb1zEnKIcwSAdLO0Mf8g4J8Yq1dJbYX3Og175Hz9jXV 9cxQIwvanLiJISthdSWFYg== 0000716791-97-000007.txt : 19971121 0000716791-97-000007.hdr.sgml : 19971121 ACCESSION NUMBER: 0000716791-97-000007 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 19971120 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHBROOK VARIABLE ANNUITY ACCOUNT II CENTRAL INDEX KEY: 0000864922 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: SEC FILE NUMBER: 033-35412 FILM NUMBER: 97725253 FILING VALUES: FORM TYPE: 485APOS SEC ACT: SEC FILE NUMBER: 811-06116 FILM NUMBER: 97725254 BUSINESS ADDRESS: STREET 1: 3100 SANDERS RD CITY: NORTHBROOK STATE: IL ZIP: 60062 BUSINESS PHONE: 7084024301 MAIL ADDRESS: STREET 1: 3100 SANDERS RD CITY: NORTHBROOK STATE: IL ZIP: 60062 485APOS 1 485APOS AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 20, 1997 FILE NO. 33-35412 811-06116 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/ POST-EFFECTIVE AMENDMENT NO. 16 AND/OR REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/ AMENDMENT NO. 17 ------------------------ NORTHBROOK VARIABLE ANNUITY ACCOUNT II (Exact Name of Registrant) NORTHBROOK LIFE INSURANCE COMPANY (Name of Depositor) MICHAEL J. VELOTTA VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL NORTHBROOK LIFE INSURANCE COMPANY 3100 SANDERS ROAD NORTHBROOK, ILLINOIS 60062 847/402-2400 (Name and Complete Address of Agent for Service) ------------------------ COPIES TO: RICHARD T. CHOI, ESQUIRE CHRISTINE A. EDWARDS, ESQUIRE FREEDMAN, LEVY, KROLL & SIMONDS DEAN WITTER REYNOLDS INC. 650 CONNECTICUT AVENUE, N.W. TWO WORLD TRADE CENTER WASHINGTON, D.C. 20006 NEW YORK, NEW YORK 10048 ------------------------ 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. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CROSS REFERENCE SHEET Showing Location in Part A (Prospectus) and Part B of Registration Statement of Information Required by Form N-4
ITEM OF FORM N-4 PROSPECTUS CAPTION - - -------------------- ---------------------------------------------- 1. Cover Page.......................................................... Cover Page 2. Definitions......................................................... Glossary 3. Synopsis............................................................ Introduction: Summary of Separate Account Expenses 4. Condensed Financials................................................ -- (a) Chart.................................................... Condensed Financial Statements (b) Performance Data......................................... Performance Data (c) Location of Others....................................... Financial Statements 5. General............................................................. -- (a) Depositor................................................ Northbrook Life Insurance Company (b) Registrant............................................... The Variable Account (c) Portfolio Company........................................ Dean Witter Variable Investment Series (d) Fund Prospectus.......................................... Dean Witter Variable Investment Series (e) Voting Rights............................................ Voting Rights (f) Administrators........................................... Charges & Other Deductions -- Contract Maintenance Charge 6. Deductions & Expenses............................................... Charges & Other Deductions (a) General.................................................. Charges & Other Deductions (b) Sales Load %............................................. Surrender Charge (c) Special Purchase Plans................................... N/A (d) Commissions.............................................. Sales Commission (e) Fund Expenses............................................ Summary of Expenses; Dean Witter Variable Investment Series Expenses (f) Organizational Expenses.................................. N/A 7. Contracts (a) Persons with Rights...................................... The Contracts; Benefits; Income Payments; Voting Rights; Assignments; Beneficiaries Contract Owners (b) (i) Allocation of Purchase Payments............... Allocation of Purchase Payments (ii) Transfers..................................... Transfers (iii) Exchanges..................................... N/A (c) Changes.................................................. Modification (d) Inquiries................................................ Customer Inquiries 8. Annuity Period...................................................... Income Payments (a) Material Factors......................................... Amount of Variable Annuity Income Payments (b) Dates.................................................... Income Starting Date (c) Frequency, duration & level.............................. Amount of Variable Annuity Income Payments (d) AIR...................................................... Amount of Variable Annuity Income Payments (e) Minimum.................................................. Amount of Variable Annuity Income Payments (f) -- Change Options........................................ Income Plans -- Transfer.............................................. -- 9. Death Benefit....................................................... Benefits Under the Contract
ITEM OF FORM N-4 PROSPECTUS CAPTION - --------------------- ---------------------------------------------- 10. Purchases & Contract Value (a) Purchases................................................ Purchase of the Contract; Crediting of Purchase Payments (b) Valuation................................................ Value of Variable Account Accumulation Units (c) Daily Calculation........................................ Value of Variable Account Accumulation Units; Allocation of Purchase Payments (d) Underwriter.............................................. Dean Witter Reynolds Inc. 11. Redemptions (a) -- By Owners............................................. Surrender & Withdrawals (b) -- By Annuitant.......................................... Annuity Options (c) Texas ORP................................................ N/A (d) Lapse.................................................... Default (e) Free Look................................................ Introduction 12. Taxes............................................................... Federal Tax Matters 13. Legal Proceedings................................................... N/A 14. SAI Contents........................................................ SAI Table of Contents 15. Cover Page.......................................................... SAI: Cover Page 16. Table of Contents................................................... SAI: Table of Contents 17. General Information & History (a) Depositor's Name......................................... Northbrook Life Insurance Company (b) Assets of Sub-Account.................................... The Variable Account (c) Control of Depositor..................................... Northbrook Life Insurance Company 18. Services (a) Fees & Expenses of Registrant............................ Contract Maintenance Charge (b) Management Contracts..................................... Contract Maintenance Charge; Sales Commissions (c) Custodian SAI: Safekeeping of the Variable Account's Assets Independent Public Accountant............................ SAI: Experts (d) Assets of Registrant..................................... SAI: Safekeeping of the Variable Account Assets (e) Affiliated Persons....................................... N/A (f) Principal Underwriter.................................... Dean Witter Reynolds Inc. 19. Purchase of Securities Being Offered (a) Offering................................................. SAI: Purchase of Contracts (b) Sales load............................................... SAI: Sales Commissions 20. Underwriters (a) Principal Underwriter.................................... N/A (b) Continuous offering...................................... SAI: Purchase of Contracts (c) Commissions.............................................. SAI: Sales Commissions; Dean Witter Reynolds Inc. (d) Unaffiliated Underwriters................................ N/A 21. Calculation of Performance Data..................................... SAI: Performance Data 22. Annuity Payments.................................................... SAI; Income Payments 23. Financial Statements (a) Financial Statements of Registrant....................... SAI; Northbrook Variable Annuity Account Financial Statements (b) Financial Statements of Depositor........................ SAI; Northbrook Life Insurance Company Financial Statements
ITEM OF FORM N-4 PROSPECTUS CAPTION - --------------------- ---------------------------------------------- 24a. Financial Statements................................................ Part C. Financial Statements 24b. Exhibits............................................................ Part C. Exhibits 25. Directors and Officers.............................................. Part C. Directors & Officers of Depositor 26. Persons Controlled By or Under Common Control with Depositor or Registrant........................................ Part C. Persons Controlled by or Under Common Control with Depositor or Registrant 27. Number of Contract Owners........................................... Part C. Number of Contract Owners 28. Indemnification..................................................... Part C. Indemnification 29a. Relationship of Principal Underwriter to Other Investment Companies................................................ Part C. Relationship of Principal Underwriter to Other Investment Companies 29b. Principal Underwriters.............................................. Part C. Principal Underwriters 29c. Compensation of Underwriter......................................... Part C. Compensation of Dean Witter 30. Location of Accounts and Records.................................... Part C. Location of Accounts and Records 31. Management Services................................................. Part C. Management Services 32. Undertakings........................................................ Part C. Undertakings
Registrant is filing this Post-effective Amendment No. 16 solely for the purposes of expanding the Dollar Cost Averaging Program, offering Automatic Portfolio Rebalancing and an optional Performance Income Benefit. Registrant does not intend for this Post-effective Amendment No. 16 to amend or delete, any other part of this Registration Statement except as specifically noted herein. SUPPLEMENT DATED JANUARY 19, 1998 TO THE PROSPECTUS DATED MAY 1, 1997 OF NORTHBROOK VARIABLE ANNUITY ACCOUNT II OF NORTHBROOK LIFE INSURANCE COMPANY Northbrook Life Insurance Company ("Northbrook Life") is pleased to announce the availability of three new optional enhancements, described below, to the Contracts described in the Prospectus. Capitalized terms have the same meaning as given to them in the Prospectus. Please retain this Supplement for future reference. DOLLAR COST AVERAGING PROGRAM Northbrook Life now permits automatic transfers among any Sub-Accounts of the Variable Account in the Dollar Cost Averaging Program. Accordingly, please replace the words "the Money Market Sub-Account" with "any Sub-Accounts of the Variable Account" in your Prospectus, as follows: Page 3: Definition of Dollar Cost Averaging Program, Page 5: Question 4, and Page 14: Paragraph 6 under "Transfers". AUTOMATIC PORTFOLIO REBALANCING Northbrook Life Insurance Company now offers Automatic Portfolio Rebalancing. Accordingly, your Prospectus is amended as follows: Page 14: Add the following paragraphs after paragraph 6 under "Transfers": Transfers may also be made automatically through Automatic Portfolio Rebalancing prior to the Payout Start Date. By electing Automatic Portfolio Rebalancing, all of the money allocated to Sub-Accounts of the Variable Account will be rebalanced to the desired allocation on a quarterly basis (or other frequencies that may be offered by the Company), determined from the first date that you decide to rebalance. Upon rebalancing, your money will be transferred among Sub-Accounts of the Variable Account to achieve the desired allocation. The desired allocation will be the allocation initially selected, unless subsequently changed. You may change the allocation at any time by giving us written notice. The new allocation will be effective with the first rebalancing that occurs after we receive the written request. Transfers made through Automatic Portfolio Rebalancing are not assessed a $25 charge and are not included in the twelve free transfers per Contract Year. Any money allocated to the Fixed Account or the Dollar Cost Averaging Fixed Account will not be included in the rebalancing. PERFORMANCE INCOME BENEFIT Northbrook Life Insurance Company now offers, at the time the Contract is purchased, the option to elect the Performance Income Benefit. Accordingly, your Prospectus is amended as follows: Page 4: Add the definition of Performance Income Benefit: Performance Income Benefit - An income benefit option which can be selected at the time the Contract is purchased. Page 6: Question 6 continued: After each reference to "Death Benefit provision" that appears in the first sentence, insert "or the optional Performance Income Benefit". Also, at the end of the first sentence, insert "When both the Performance Income Benefit and the Performance Death Benefit are selected an additional Mortality and Expense Risk Charge of .24% is assessed bringing the total charges for Contracts with both the Performance Income Benefit and the Performance Death Benefit to a Mortality and Expense Risk Charge of 1.49% and an Administrative Expense Charge of .10%." Page 7: Replace the "Separate Account Annual Expenses" chart in its entirety with the following chart: SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of account value)
Without an With an With Both the Optional Optional Optional Death Benefit Death Benefit Performance Provision Provision or Income the Optional Benefit and Performance the Optional Income Performance Benefit Death Benefit Mortality and Expense Risk Charge 1.25% 1.38% 1.49% Administrative Expense Charge .10% .10% .10% Total Separate Account Annual Expenses 1.35% 1.48% 1.59%
Page 8: Replace the Example headings that read "(with an optional Death Benefit provision**)" with the heading "(with an optional Death Benefit provision or the optional Performance Income Benefit**)" Add the following table under the section: "If you surrender your Contract...." (with both the optional Performance Income Benefit and the optional Performance Death Benefit****)
1 Year 3 Year 5 Year 10 Year ------ ------ ------ ------- Money Market Sub-Account $65 $94 $125 $250 Quality Income Plus Sub-Account $65 $94 $126 $251 High Yield Sub-Account $65 $93 $125 $249 Utilities Sub-Account $66 $98 $133 $266 Income Builder Sub-Account $68 $103 $141 $281 Dividend Growth Sub-Account $65 $95 $128 $256 Capital Growth Sub-Account $67 $100 $136 $272 Global Dividend Growth Sub-Account $68 $104 $142 $284 European Growth Sub-Account $71 $112 $155 $310 Pacific Growth Sub-Account $73 $120 $169 $336 Capital Appreciation Sub-Account $68 $103 $141 $281 Equity Sub-Account $65 $94 $136 $252 Strategist Sub-Account $65 $94 $125 $250 Add the following table under the section: "If you do not surrender your Contract ...." (with both the optional Performance Income Benefit and the optional Performance Death Benefit ****) 1 Year 3 Year 5 Year 10 Year ------ ------ ------ ------- Money Market Sub-Account $22 $68 $117 $250 Quality Income Plus Sub-Account $22 $68 $117 $251 High Yield Sub-Account $22 $68 $116 $249 Utilities Sub-Account $24 $73 $124 $266 Income Builder Sub-Account $25 $77 $132 $281 Dividend Growth Sub-Account $23 $70 $119 $256 Capital Growth Sub-Account $24 $75 $128 $272 Global Dividend Growth Sub-Account $25 $78 $134 $284 European Growth Sub-Account $28 $86 $147 $310 Pacific Growth Sub-Account $31 $94 $160 $336 Capital Appreciation Sub-Account $25 $77 $132 $281 Equity Sub-Account $22 $69 $118 $252 Strategist Sub-Account $22 $68 $117 $250 **** Total Separate Account Annual Expenses of 1.59%
Page 16: In the third sentence under "Mortality and Expense Risk Charge," insert "or the optional Performance Income Benefit" after the phrase "optional Death Benefit provision." Also, insert the following two sentences before the last sentence of the first paragraph: The assessment of the additional .13% for the optional Performance Income Benefit is attributed to the assumption of additional survivorship risks. When both the Performance Income Benefit and the Performance Death Benefit are selected an additional .24% is assessed for a total of 1.49%. Page 17: At the end of the second paragraph under "Benefits Under The Contract," add the following two sentences: If the Performance Income Benefit is selected at the time of purchase, then the Performance Death Benefit is the only optional Death Benefit provision available. Either of the optional Death Benefit provisions may not be available in all states. Page 19: At the end of the "Amount of Variable Annuity Income Payments" section add the following: The Performance Income Benefit is an optional benefit that you may elect at the time you purchase your Contract. Your Performance Income Benefit, on the date of issue, will equal the amount of your initial Purchase Payment. For each Contract Anniversary, additional Purchase Payment or withdrawal we will recalculate your Performance Income Benefit. The Performance Income Benefit will be 1) increased by additional Purchase Payments and 2) reduced by withdrawals by an amount equal to: (i) the Performance Income Benefit just before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Cash Value just before the withdrawal. We will recalculate the Performance Income Benefit until the oldest Owner or Annuitant (if the Owner is a non-natural Owner) attains age 85. After age 85, we will only recalculate the Performance Income Benefit to reflect additional Purchase Payments and withdrawals. To exercise your Performance Income Benefit, you must apply it to an income plan. The Payout Start Date you select must begin on or after your tenth Contract Anniversary and within 30 days after a Contract Anniversary. In addition, you must apply your Performance Income Benefit to an income plan that provides guaranteed payments for either a single or joint life for at least: 1. 10 years, if the Annuitant's age (or youngest Annuitant's age in the case of joint Annuitants) is 80 or less on the date you apply the Benefit, or 2. 5 years, if the Annuitant's age (or youngest Annuitant's age, in the case of joint Annuitants) is greater than 80 on the date you apply the Benefit. If your current Cash Value is higher than the Performance Income Benefit, you can apply the Cash Value to any income plan. The Performance Income Benefit may not be available in all states. Part B SUPPLEMENT DATED JANUARY 19, 1998 TO THE STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1997 OF NORTHBROOK VARIABLE ANNUITY ACCOUNT II OF NORTHBROOK LIFE INSURANCE COMPANY Under "Standardized Total Return" and "Other Total Return" replace the Example headings that read "(with an optional Death Benefit provision**)" with the heading "(with an optional Death Benefit provision or the optional Performance Income Benefit**)". Also insert the following tables: Standardized Total Return (With both the Optional Performance Income Benefit and the Optional Performance Death Benefit)
Sub-Account One-Year Since Inception - ----------------------- -------- --------------- Capital Growth 5.46% 11.38% Dividend Growth 17.68% 22.04% Equity 6.26% 9.70% European Growth 23.61% 22.52% Global Dividend Growth 11.40% 15.44% High Yield 5.88% 6.63% Money Market N/A N/A Pacific Growth (2.08)% .62% Quality Income Plus (4.37)% (.43)% Strategist 8.88% 9.91% Utilities 2.64% 7.63% (With both the Optional Performance Income Benefit and the Optional Performance Death Benefit) 10-Years or Since Sub-Account 1 Year 5-Years Inception (if less) - ----------------------- ------ ------- ------------------- Capital Growth 5.46% 4.82% 8.45% Dividend Growth 17.68% 13.15% 11.69% Equity 6.26% 10.84% 11.25% European Growth 23.61% 18.99% 16.05% Global Dividend Growth 11.40% N/A 10.77% High Yield 5.88% 11.11% 5.52% Money Market N/A N/A N/A Pacific Growth (2.08)% N/A (2.04)% Quality Income Plus (4.37)% 5.71% 6.94% Strategist 8.88% 7.23% 8.19% Utilities 2.64% 8.71% 9.57% Other Total Returns (With both the Optional Performance Income Benefit and the Optional Performance Death Benefit) 10-Years or Since Sub-Account 1 Year 5-Years Inception (if less) - ----------------------- ------ ------- ------------------- Capital Growth 9.77% 5.03% 8.60% Dividend Growth 21.99% 13.31% 11.74% Equity 10.58% 11.01% 11.30% European Growth 27.93% 19.13% 16.17% Global Dividend Growth 15.72% N/A 11.80% High Yield 10.20% 11.27% 5.58% Money Market N/A N/A N/A Pacific Growth 2.24% N/A (.74)% Quality Income Plus (.06)% 5.91% 6.99% Strategist 13.20% 7.41% 8.23% Utilities 6.95% 8.89% 9.61%
SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Northbrook Variable Annuity Account II, has caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the Township of Northfield, State of Illinois, on the 13th day of November, 1997. NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) BY: NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) (SEAL) Attest: /S/ BRENDA D. SNEED By: /S/ MICHAEL J. VELOTTA ------------------- ---------------------- Brenda D. Sneed Michael J. Velotta Assistant Secretary Vice President, Secretary and And Assistant General Counsel General Counsel As required by the Securities Act of 1933, this Registration Statement has been duly signed below by the following Directors and Officers of Northbrook Life Insurance Company on the 13th day of November, 1997. */LOUIS G. LOWER, II Chairman of the Board of Directors and - ------------------------ Chief Executive Officer Louis G. Lower, II (Principal Executive Officer) /S/ MICHAEL J. VELOTTA Vice President, Secretary, General - ------------------------ Counsel and Director Michael J. Velotta */PETER H. HECKMAN President, Chief Operating Officer - ------------------------ and Director Peter H. Heckman */JOHN R. HUNTER Assistant Vice President - ------------------------ and Director John R. Hunter */KEVIN R. SLAWIN Vice President and Director - ------------------------ (Principal Financial Officer) Kevin R. Slawin */CASEY J. SYLLA Chief Investment Officer and Director - ------------------------ Casey J. Sylla */MARLA G. FRIEDMAN Vice President - ------------------------ Marla G. Friedman */KAREN C. GARDNER Vice President - ------------------------ Karen C. Gardner */JAMES P. ZILS Treasurer - ------------------------ James P. Zils */KEITH A. HAUSCHILDT Assistant Vice President and Controller - ------------------------ (Principal Accounting Officer) Keith A. Hauschildt */ By Michael J. Velotta, pursuant to Power of Attorney, previously filed. PART C OTHER INFORMATION 24A. FINANCIAL STATEMENTS Northbrook Life Insurance Company Financial Statements and Financial Schedule and Northbrook Variable Annuity Account II Financial Statements are incorporated by reference to Registration Statement NO. 33-35412, filed on May 1, 1997. 24B. EXHIBITS The following exhibits, correspond to those required by paragraph (b) of item 24 as to exhibits in Form N-4: (1) Resolution of the Board of Directors of Northbrook Life Insurance Company authorizing establishment of the Variable Annuity Account II* (2) Not Applicable (3)(a) Underwriting Agreement* (b) Form of General Agency Agreement* (4)(a) Form of Contract and Certificate Amendments*,** (b) Form of Performance Benefit Income Rider (c) Form of Performance Combination Rider (5) Form of application for a Contract* (6)(a) Articles of Incorporation of Northbrook Life Insurance Company* (b) By-laws of Northbrook Life Insurance Company* (7) Not applicable (8) Participation Agreement*** (9) Opinion of Robert S. Seiler, Senior Vice President, Secretary and General Counsel of Northbrook Life Insurance Company* (10)(a) Consent of Accountants**** (b) Consent of Attorneys***** (11) Not applicable (12) Form of Agreement to Purchase Shares* (13) Performance Data Calculations (14) Financial Data Schedule****** (99) Powers of Attorney*
- ------------------------ * Previously filed in Form N-4 Registration Statement No. 33-35412 dated December 31, 1996 and incorporated by reference. ** Previously filed in Form N-4 Registration Statement No. 33-35412 dated February 28, 1997 and incorporated by reference. *** Previously filed in Form N-4 Registration Statement No. 33-35412 dated April 30, 1996 and incorporated by reference. **** Previously filed in Form N-4 Registration Statement No. 33-35412 dated May 1, 1997 and incorporated by reference. ***** Previously filed in Form N-4 Registration Statement No. 33-35412 dated June 14, 1990 and incorporated by reference. ****** Previously filed in Depositor's Form 10-K, filed March 31, 1997. 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME AND PRINCIPAL BUSINESS ADDRESS POSITION AND OFFICE WITH DEPOSITOR OF THE TRUST - - ------------------------------- ------------------------------------------------------------------ Louis G. Lower, II Chairman of the Board of Directors and Chief Executive Officer Michael J. Velotta Director, Vice President, Secretary and General Counsel Peter H. Heckman Director, President and Chief Operating Officer Marla G. Friedman Vice President John R. Hunter Director and Assistant Vice President Kevin R. Slawin Director and Vice President Casey J. Sylla Director and Chief Investment Officer Karen C. Gardner Vice President James P. Zils Treasurer Keith A. Hauschildt Assistant Vice President and Controller Sarah R. Donahue Assistant Vice President Ronald Johnson Assistant Vice President Barry S. Paul Assistant Vice President Emma M. Kalaidjian Assistant Secretary Paul N. Kierig Assistant Secretary Mary J. McGinn Assistant Secretary Robert N. Roeters Assistant Vice President Brenda D. Sneed Assistant Secretary and Assistant General Counsel C. Nelson Strom Assistant Vice President and Corporate Actuary Charles F. Thalheimer Assistant Vice President Nancy M. Bufalino Assistant Treasurer Patricia A. Wilson Assistant Vice President, Assistant Secretary and Assistant Treasurer
The principal business address of the foregoing officers and directors is 3100 Sanders Road, Northbrook, Illinois 60062. 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT See 10-K Commission File #1-11840, The Allstate Corporation. 27. NUMBER OF CONTRACT OWNERS As of November 7, 1997 there were in force 13,234 qualified and 73,585 non-qualified contracts. The Registrant began operations on October 25, 1990. 28. INDEMNIFICATION The General Agency Agreement (Exhibit 3(b)) has a provision in which Northbrook Life agrees to indemnify Dean Witter Reynolds as Underwriter for certain damages and expenses that may be caused by actions, statements or omissions by Northbrook Life. The Agreement to Purchase Shares contains a similar provision in paragraph 16 of Exhibit 12. Insofar as indemnification for liability arising out of the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than payment by the registrant of expenses incurred by a director, officer or controlling person of the registrant in the successful defense of any action, suit, or proceeding) is asserted such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. 29A. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES Dean Witter Distributors Inc. is the principal underwriter for the following investment companies: Dean Witter Liquid Asset Fund Inc. Dean Witter Tax-Free Daily Income Trust Dean Witter California Tax-Free Daily Income Trust Dean Witter Retirement Series Dean Witter Dividend Growth Securities Inc. Dean Witter Natural Resource Development Securities Inc. Dean Witter World Wide Investment Trust Dean Witter Capital Growth Securities Dean Witter Convertible Securities Trust Active Assets Tax-Free Trust Active Assets Money Trust Active Assets California Tax-Free Trust Active Assets Government Securities Trust Dean Witter Short-Term Bond Fund Dean Witter Mid-Cap Growth Fund Dean Witter U.S. Government Securities Trust Dean Witter High Yield Securities Inc. Dean Witter New York Tax-Free Income Fund Dean Witter Tax-Exempt Securities Trust Dean Witter California Tax-Free Income Fund Dean Witter Limited Term Municipal Trust Dean Witter World Wide Income Trust Dean Witter Utilities Fund Dean Witter Strategist Fund Dean Witter New York Municipal Money Market Trust Dean Witter Intermediate Income Securities Prime Income Trust Dean Witter European Growth Fund Inc. Dean Witter Developing Growth Securities Trust Dean Witter Precious Metals and Minerals Trust Dean Witter Pacific Growth Fund Inc. Dean Witter Multi-State Municipal Series Trust Dean Witter Federal Securities Trust Dean Witter Short-Term U.S. Treasury Trust Dean Witter Diversified Income Trust Dean Witter Health Sciences Trust Dean Witter Global Dividend Growth Securities Dean Witter American Value Fund Dean Witter U.S. Government Money Market Trust Dean Witter Global Short-Term Income Fund Inc. Dean Witter Premier Income Trust Dean Witter Value-Added Market Series Dean Witter Global Utilities Fund Dean Witter High Income Securities Dean Witter National Municipal Trust Dean Witter International SmallCap Fund Dean Witter Global Asset Allocation Dean Witter Balanced Income Fund Dean Witter Balanced Growth Fund Dean Witter Hawaii Municipal Trust Dean Witter Capital Appreciation Fund Dean Witter Intermediate Term U.S. Treasury Trust Dean Witter Information Fund Dean Witter Japan Fund Dean Witter Income Builder Fund Dean Witter Special Value Fund TCW/DW Core Equity Trust TCW/DW North American Government Income Trust TCW/DW Latin American Growth Fund TCW/DW Income and Growth Fund TCW/DW Small Cap Growth Fund TCW/DW Balanced Fund TCW/DW Mid-Cap Equity Trust TCW/DW Total Return Trust TCW/DW Global Telecom Trust TCW/DW Strategic Income Trust 29B. PRINCIPAL UNDERWRITER
NAME AND PRINCIPAL BUSINESS ADDRESS OF EACH SUCH PERSON POSITIONS AND OFFICES WITH UNDERWRITER - -------------------------------- ------------------------------------------------------------------ Dean Witter Reynolds Inc. Underwriter ("Dean Witter") Philip J. Purcell Chairman, Chief Executive Officer and Director Richard M. Demartini President, Chief Operating Officer and Director, Dean Witter Capital James F. Higgins President and Chief Operating Officer and Director, Dean Witter Financial Stephen R. Miller Senior Executive Vice President and Director Raymond J. Drop Executive Vice President Robert J. Dwyer Executive Vice President, National Sales Director and Director Christine A. Edwards Executive Vice President, Secretary, General Counsel and Director Charles A. Fiumefreddo Executive Vice President and Director Frederick J. Frohne Executive Vice President Alfred J. Golden Executive Vice President E. Davisson Hardman, Jr. Executive Vice President Mitchell M. Merin Executive Vice President, Chief Administrative Officer and Director Laurence E. Mollner Executive Vice President Jeremiah A. Mullins Executive Vice President Richard F. Powers, III Executive Vice President and Director John H. Schaefer Executive Vice President Thomas C. Schneider Executive Vice President, Chief Financial Officer and Director Robert B. Sculthorpe Executive Vice President William B. Smith Executive Vice President and Director Samule H. Wolcott, III Executive Vice President Anthony Basile Senior Vice President Ronald T. Carman Senior Vice President, Associate General Counsel and Assistant Secretary Michael T. Cunningham Senior Vice President Mary E. Curran Senior Vice President David Diaz Senior Vice President Raymond F. Douglas Senior Vice President Paul J. Dubow Senior Vice President and Deputy General Counsel Michael T. Gregg Senior Vice President and Deputy General Counsel Erick R. Holt Senior Vice President and Assistant Secretary Birendra Kumar Senior Vice President and Treasurer George R. Ross Senior Vice President Robert P. Seass Senior Vice President Joseph G. Siniscalchi Senior Vice President and Controller, Dean Witter Financial Michael H. Stone Senior Vice President
NAME AND PRINCIPAL BUSINESS ADDRESS OF EACH SUCH PERSON POSITIONS AND OFFICES WITH UNDERWRITER - -------------------------------- ------------------------------------------------------------------ Lawrence Volpe Senior Vice President and Controller, Dean Witter Reynolds Inc. and Dean Witter Capital Lorena J. Kern Senior Vice President Kathryn M. McNamara Senior Vice President and Director of Governmental Affairs Michael D. Browne Assistant Secretary Linda M. Butler Assistant Secretary Marilyn Cranney Assistant Secretary Sheldon Curtis Assistant Secretary Barry Fink Assistant Secretary Sabrina Hurley Assistant Secretary Barbara B. Kiley Assistant Secretary
The principal address of Dean Witter is Two World Trade Center, New York, New York 10048. 29C. COMPENSATION OF DEAN WITTER The following commissions and other compensation were received by each principal underwriter, directly or indirectly, from the Registrant during the Registrant's last fiscal year:
(1) (2) (3) (4) (5) NET COMPENSATION UNDERWRITING OR REDEMPTION NAME OF DISCOUNTS AND OR BROKERAGE PRINCIPAL COMMISSIONS ANNUITIZATION COMMISSIONS COMPENSATION - ---------------- ------------- -------------- -------------- -------------- Dean Witter Reynolds Inc. $53,617,941
30. LOCATION OF ACCOUNTS AND RECORDS Michael J. Velotta Northbrook Life Insurance Company 3100 Sanders Road Northbrook, Illinois 60062 31. MANAGEMENT SERVICES None 32. UNDERTAKINGS The Registrant promises to file a post-effective amendment to this Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. Registrant furthermore agrees to include either 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 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. Finally, the Registrant agrees to deliver any Statement of Additional Information and any Financial Statements required to be made available under this Form N-4 promptly upon written or oral request. 33. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE The Company represents that it is relying upon a November 28, 1988 Securities and Exchange Commission no-action letter issued to the American Council of Life Insurance ("ACLI") and that the provisions of paragraphs 1-4 of the no-action letter have been complied with. 34. REPRESENTATION REGARDING CONTRACT EXPENSES Northbrook Life Insurance Company ("Northbrook Life") represents that the fees and charges deducted under the Group and Individual Variable Annuity Contracts hereby registered by this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Northbrook Life. EX-99.A4 2 CONTRACT NLU839 (11/97) NORTHBROOK LIFE INSURANCE COMPANY (herein called "we" or "us") Performance Income Benefit Rider This rider was issued because you selected the Performance Income Benefit at the time you applied for this annuity. The following changes are made to your Contract. I. Throughout the PAYOUT PHASE section of your Contract, the term "cash value" is replaced with "the greater of the cash value or the Performance Income Benefit" if: - the owner elects a payout start date on or after the tenth contract anniversary, and - the payout start date occurs during the 30 day period following a contract anniversary. If the amount applied to an income plan is the Performance Income Benefit, then the income plan must provide payments guaranteed for either single or joint life with a period certain of at least: - 10 years, if the youngest annuitant's age is 80 or less on the date the amount is applied, or - 5 years, if the youngest annuitant's age is greater than 80 on the date the amount is applied. If the amount applied to an income plan is the cash value, then the income plan may be any plan then offered by us. II. At issue, the Performance Income Benefit is equal to the initial purchase payment. After issue, the Performance Income Benefit is recalculated when a purchase payment or withdrawal is made or on a contract anniversary as follows: A. For purchase payments, the Performance Income Benefit is equal to the most recently calculated Performance Income Benefit plus the purchase payment. B. For withdrawals, the Performance Income Benefit is equal to the most recently calculated Performance Income Benefit reduced by a withdrawal adjustment. The adjustment is equal to (1) divided by (2), with the result multiplied by (3), where: (1) = the withdrawal amount. (2) = the cash value immediately prior to the withdrawal. (3) = the most recently calculated Performance Income Benefit. C. On each contract anniversary, the Performance Income Benefit is equal to the greater of the cash value or the most recently calculated Performance Income Benefit. In the absence of any withdrawals or purchase payments, the Performance Income Benefit will be the greatest of all contract anniversary cash values on or prior to the payout start date. The Performance Income Benefit will be recalculated for purchase payments, withdrawals and on contract anniversaries until the oldest owner or the annuitant, if the owner is a non-natural person, attains age 85. After age 85, the Performance Income Benefit will be recalculated only for purchase payments and withdrawals. III. The Mortality and Expense Risk Charge provision of your Contract is modified as follows: The annualized mortality and expense risk charge of 1.25% is changed to 1.38%.
Except as amended, the Contract remains unchanged. Michael J. Velotta Louis G. Lower, II Secretary Chief Executive Officer NLU842 (11/97) NORTHBROOK LIFE INSURANCE COMPANY (herein called "we" or "us") Performance Benefit Combination Rider This rider was issued because you selected the Performance Death Benefit for the death of any owner and the Performance Income Benefit at the time you applied for this annuity. The following changes are made to your Contract. Performance Income Benefit - -------------------------- I. Throughout the PAYOUT PHASE section of your Contract, the term "cash value" is replaced with "the greater of the cash value or the Performance Income Benefit" if: - the owner elects a payout start date on or after the tenth contract anniversary, and - the payout start date occurs during the 30 day period following a contract anniversary. If the amount applied to an income plan is the Performance Income Benefit, then the income plan must provide payments guaranteed for either single or joint life with a period certain of at least: - 10 years, if the youngest annuitant's age is 80 or less on the date the amount is applied, or - 5 years, if the youngest annuitant's age is greater than 80 on the date the amount is applied. If the amount applied to an income plan is the cash value, then the income plan may be any plan then offered by us. II. At issue, the Performance Income Benefit is equal to the initial purchase payment. After issue, the Performance Income Benefit is recalculated when a purchase payment or withdrawal is made or on a contract anniversary as follows: A. For purchase payments, the Performance Income Benefit is equal to the most recently calculated Performance Income Benefit plus the purchase payment. B. For withdrawals, the Performance Income Benefit is equal to the most recently calculated Performance Income Benefit reduced by a withdrawal adjustment. The adjustment is equal to (1) divided by (2), with the result multiplied by (3), where: (1) = the withdrawal amount. (2) = the cash value immediately prior to the withdrawal. (3) = the most recently calculated Performance Income Benefit. C. On each contract anniversary, the Performance Income Benefit is equal to the greater of the cash value or the most recently calculated Performance Income Benefit. In the absence of any withdrawals or purchase payments, the Performance Income Benefit will be the greatest of all contract anniversary cash values on or prior to the payout start date. The Performance Income Benefit will be recalculated for purchase payments, withdrawals and on contract anniversaries until the oldest owner or the annuitant, if the owner is a non-natural person, attains age 85. After age 85, the Performance Income Benefit will be recalculated only for purchase payments and withdrawals. Performance Death Benefit - ------------------------- If the owner is a natural person, the Performance Death Benefit applies only to the death of the owner. If the owner is not a natural person, the Performance Death Benefit applies only to the death of the annuitant. This is unlike the death benefit defined in the Death Benefit provision of your Contract which may apply to the death of the annuitant even if the owner is a natural person. I. The Death Benefit provision of your Contract is modified as follows: The Death Benefit will be the greatest of the values stated in your Contract, or the value of the Performance Death Benefit. At issue, the Performance Death Benefit is equal to the initial purchase payment. After issue, the Performance Death Benefit is recalculated when a purchase payment or withdrawal is made or on a contract anniversary as follows: A. For purchase payments, the Performance Death Benefit is equal to the most recently calculated Performance Death Benefit plus the purchase payment. B. For withdrawals, the Performance Death Benefit is equal to the most recently calculated Performance Death Benefit reduced by a withdrawal adjustment. The adjustment is equal to (1) divided by (2), with the result multiplied by (3), where: (1) = the withdrawal amount. (2) = the cash value immediately prior to the withdrawal. (3) = the most recently calculated Performance Death Benefit. C. On each contract anniversary, the Performance Death Benefit is equal to the greater of the cash value or the most recently calculated Performance Death Benefit. In the absence of any withdrawals or purchase payments, the Performance Death Benefit will be the greatest of all contract anniversary cash values on or prior to the date we calculate the death benefit. The Performance Death Benefit will be recalculated for purchase payments, withdrawals and on contract anniversaries until the oldest owner or the annuitant, if the owner is a non-natural person, attains age 85. After age 85, the Performance Death Benefit will be recalculated only for purchase payments and withdrawals. Mortality and Expense Risk Charge - --------------------------------- The Mortality and Expense Risk Charge provision of your Contract is modified as follows: The annualized mortality and expense risk charge of 1.25% is changed to 1.49%.
Except as amended, the Contract remains unchanged. Michael J. Velotta Louis G. Lower, II Secretary Chief Executive Officer EX-13 3 EXHIBIT 13
NLIC VAII HIGH YIELD - -------------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- --------- ----------- --------- ---------- INIT DEPOSIT 29-Dec-95 1000.00 24.277566 41.19029 FEE 31-Dec-96 0.669 26.753971 0.02501 RESULTING VALUE 31-Dec-96 26.753971 41.16529 1101.3348 1.000 FORMULA: 1000*(1+T)= 1101.3348 -(0.85 * 1000 * 0.05) = 1058.8348 Standardized Return = T = 5.88% R = 5.88% NLIC VAII EQUITY - ---------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- -------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 40.008767 24.99452 FEE 31-Dec-96 0.669 44.239754 0.01512 RESULTING VALUE 31-Dec-96 44.239754 24.97940 1105.0825 1.000 FORMULA: 1000*(1+T)= 1105.0825 -(0.85 * 1000 * 0.05) = 1062.5825 Standardized Return = T = 6.26% R = 6.26% NLIC VAII QUALITY INCOME - ------------------------ NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ------------ --------- -------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 19.451222 51.41065 FEE 31-Dec-96 0.669 19.439970 0.03441 RESULTING VALUE 31-Dec-96 19.439970 51.37624 998.7525 1.000 FORMULA: 1000*(1+T)= 998.7525 -(0.85 * 1000 * 0.05) = 956.2525 Standardized Return = T = -4.37% R = -4.37%
NLIC VAII STRATEGIST - -------------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ------- ---------- --------- ---------- INIT DEPOSIT 29-Dec-95 1000.00 19.251428 51.94420 FEE 31-Dec-96 0.669 21.791756 0.03070 RESULTING VALUE 31-Dec-96 21.791756 51.91350 1131.2863 1.000 FORMULA: 1000*(1+T)= 1131.2863 -(0.85 * 1000 * 0.05) = 1088.7863 Standardized Return = T = 8.88% R = 8.88% NLIC VAII DIVIDEND GROWTH - -------------------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 17.515440 57.09249 FEE 31-Dec-96 0.669 21.367455 0.03131 RESULTING VALUE 31-Dec-96 21.367455 57.06118 1219.2521 1.000 FORMULA: 1000*(1+T)= 1219.2521 -(0.85 * 1000 * 0.05) = 1176.7521 Standardized Return = T = 17.68% R = 17.68% NLIC VAII UTILITIES - ------------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- ----------- ------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 17.518661 57.08199 FEE 31-Dec-96 0.669 18.736675 0.03571 RESULTING VALUE 31-Dec-96 18.736675 57.04628 1068.8577 1.000 FORMULA: 1000*(1+T)= 1068.8577 -(0.85 * 1000 * 0.05) = 1026.3577 Standardized Return = T = 2.64% R = 2.64%
NLIC VAII EUROPEAN GROWTH - ------------------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- -------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 18.757024 53.31336 FEE 31-Dec-96 0.669 23.995252 0.02788 RESULTING VALUE 31-Dec-96 23.995252 53.28548 1278.5985 1.000 FORMULA: 1000*(1+T)= 1278.5985 -(0.85 * 1000 * 0.05) = 1236.0985 Standardized Return = T = 23.61% R = 23.61% NLIC VAII CAPITAL GROWTH - ------------------------ NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 14.750725 67.79328 FEE 31-Dec-96 0.669 16.192376 0.04132 RESULTING VALUE 31-Dec-96 16.192376 67.75196 1097.0652 1.000 FORMULA: 1000*(1+T)= 1097.0652 -(0.85 * 1000 * 0.05) = 1054.5652 Standardized Return = T = 5.46% R = 5.46% NLIC VAII PACIFIC GROWTH - ------------------------ NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 9.574734 104.44154 FEE 31-Dec-96 0.669 9.788757 0.06834 RESULTING VALUE 31-Dec-96 9.788757 104.37320 1021.6839 1.000 FORMULA: 1000*(1+T)= 1021.6839 -(0.85 * 1000 * 0.05) = 979.1839 Standardized Return = T = -2.08% R = -2.08%
NLIC VAII GLOBAL DIVIDEND GROWTH - --------------------------------- NO. YEARS 1.000 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ------- ---------- --------- --------- INIT DEPOSIT 29-Dec-95 1000.00 11.879940 84.17551 FEE 31-Dec-96 0.669 13.747230 0.04866 RESULTING VALUE 31-Dec-96 13.747230 84.12684 1156.5111 1.000 FORMULA: 1000*(1+T)= 1156.5111 -(0.85 * 1000 * 0.05) = 1114.0111 Standardized Return = T = 11.40% R = 11.40%
NLIC VAII HIGH YIELD - -------------------- 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- -------- ---------- --------- --------- INIT DEPOSIT 31-Dec-91 1000.00 15.684458 63.75738 FEE 31-Dec-92 0.669 18.281144 0.03660 FEE 31-Dec-93 0.669 22.343890 0.02994 FEE 31-Dec-94 0.669 21.505368 0.03111 FEE 31-Dec-95 0.669 24.277566 0.02756 FEE 31-Dec-96 0.669 26.753971 0.02501 RESULTING VALUE 31-Dec-96 26.753971 63.60718 1701.7446 5.000 FORMULA: 1000*(1+T)= 1701.7446 -(0.85 * 1000 * 0.01) = 1693.24458 Standardized Return = T = 11.11% R = 69.32% NLIC VAII EQUITY 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ------- ---------- --------- --------- INIT DEPOSIT 31-Dec-91 1000.00 26.237088 38.11399 FEE 31-Dec-92 0.669 25.862407 0.02587 FEE 31-Dec-93 0.669 30.471461 0.02195 FEE 31-Dec-94 0.669 28.207377 0.02372 FEE 31-Dec-95 0.669 40.008767 0.01672 FEE 31-Dec-96 0.669 44.239754 0.01512 RESULTING VALUE 31-Dec-96 44.239754 38.01060 1681.5797 5.000 FORMULA: 1000*(1+T)= 1681.5797 -(0.85 * 1000 * 0.01) = 1673.07972 Standardized Return = T = 10.84% R = 67.31%
NLIC VAII QUALITY INCOME 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- -------- ---------- --------- --------- INIT DEPOSIT 31-Dec-91 1000.00 14.591585 68.53265 FEE 31-Dec-92 0.669 15.549586 0.04302 FEE 31-Dec-93 0.669 17.292914 0.03869 FEE 31-Dec-94 0.669 15.853091 0.04220 FEE 31-Dec-95 0.669 19.451222 0.03439 FEE 31-Dec-96 0.669 19.439970 0.03441 RESULTING VALUE 31-Dec-96 19.439970 68.33993 1328.5262 5.000 FORMULA: 1000*(1+T)= 1328.5262 -(0.85 * 1000 * 0.01) = 1320.02622 Standardized Return = T = 5.71% R = 32.00%
NLIC VAII STRATEGIST 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- -------- ---------- -------- --------- INIT DEPOSIT 31-Dec-91 1000.00 15.240329 65.61538 FEE 31-Dec-92 0.669 16.084695 0.04159 FEE 31-Dec-93 0.669 17.476540 0.03828 FEE 31-Dec-94 0.669 17.894525 0.03739 FEE 31-Dec-95 0.669 19.251428 0.03475 FEE 31-Dec-96 0.669 21.791756 0.03070 RESULTING VALUE 31-Dec-96 21.791756 5.43267 1425.8929 5.000 FORMULA: 1000*(1+T)= 1425.8929 -(0.85 * 1000 * 0.01) = 1417.39287 Standardized Return = T = 7.23% R = 41.74%
NLIC VAII DIVIDEND GROWTH 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- -------- ---------- --------- INIT DEPOSIT 31-Dec-91 1000.00 11.439575 87.41583 FEE 31-Dec-92 0.669 12.177683 0.05494 FEE 31-Dec-93 0.669 13.704975 0.04881 FEE 31-Dec-94 0.669 13.120081 0.05099 FEE 31-Dec-95 0.669 17.515440 0.03819 FEE 31-Dec-96 0.669 21.367455 0.03131 RESULTING VALUE 31-Dec-96 21.367455 87.19159 1863.0624 5.000 FORMULA: 1000*(1+T)= 1863.0624 -(0.85 * 1000 * 0.01) = 1854.56235 Standardized Return = T = 13.15% R = 85.46%
NLIC VAII UTILITIES 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- ------- ------------ ----------- ----------- ----------- INIT DEPOSIT 31-Dec-91 1000.00 12.238950 81.70636 FEE 31-Dec-92 0.669 13.568366 0.04931 FEE 31-Dec-93 0.669 15.450133 0.04330 FEE 31-Dec-94 0.669 13.845961 0.04832 FEE 31-Dec-95 0.669 17.518661 0.03819 FEE 31-Dec-96 0.669 18.736675 0.03571 RESULTING VALUE 31-Dec-96 18.736675 81.49154 1526.8805 5.000 FORMULA: 1000*(1+T)= 1526.8805 -(0.85 * 1000 * 0.01) = 1518.38052 Standardized Return = T = 8.71% R = 51.84%
NLIC VAII EUROPEAN GROWTH 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- --------- ---------- ------------ --------- --------- INIT DEPOSIT 31-Dec-91 1000.00 10.000386 99.99614 FEE 31-Dec-92 0.669 10.235178 0.06536 FEE 31-Dec-93 0.669 14.192826 0.04714 FEE 31-Dec-94 0.669 15.157447 0.04414 FEE 31-Dec-95 0.669 18.757024 0.03567 FEE 31-Dec-96 0.669 23.995252 0.02788 RESULTING VALUE 31-Dec-96 23.995252 99.77595 2394.1491 5.000 FORMULA: 1000*(1+T)= 2394.1491 -(0.85 * 1000 * 0.01) = 2385.64911 Standardized Return = T = 18.99% R = 138.56%
NLIC VAII CAPITAL GROWTH 31-Dec-91 TO NO. YEARS 5.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- -------- ---------- ---------- ---------- INIT DEPOSIT 31-Dec-91 1000.00 12.671942 78.91450 FEE 31-Dec-92 0.669 12.675435 0.05278 FEE 31-Dec-93 0.669 11.603141 0.05766 FEE 31-Dec-94 0.669 11.219706 0.05963 FEE 31-Dec-95 0.669 14.750725 0.04535 FEE 31-Dec-96 0.669 16.192376 0.04132 RESULTING VALUE 31-Dec-96 16.192376 78.65777 1273.6562 5.000 FORMULA: 1000*(1+T)= 1273.6562 -(0.85 * 1000 * 0.01) = 1265.15623 Standardized Return = T = 4.82% R = 26.52% NLIC VAII HIGH YIELD 31-Dec-86 TO NO. YEARS 10.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ------------ --------- -------- ----------- ---------- INIT DEPOSIT 31-Dec-86 1000.00 15.544125 64.33299 FEE 31-Dec-87 0.669 14.833365 0.04510 FEE 31-Dec-88 0.669 16.207813 0.04128 FEE 31-Dec-89 0.669 13.944138 0.04798 FEE 31-Dec-90 0.669 10.044353 0.06660 FEE 31-Dec-91 0.669 15.684458 0.04265 FEE 31-Dec-92 0.669 18.281144 0.03660 FEE 31-Dec-93 0.669 22.343890 0.02994 FEE 31-Dec-94 0.669 21.505368 0.03111 FEE 31-Dec-95 0.669 24.277566 0.02756 FEE 31-Dec-96 0.669 26.753971 0.02501 RESULTING VALUE 31-Dec-96 26.753971 63.93917 1710.6266 10.000 FORMULA: 1000*(1+T)= 1710.6266 -(0.85 *1000 * 0) = 1710.6266 Standardized Return = T = 5.52% R = 71.06% NLIC VAII EQUITY 31-Dec-86 TO NO. YEARS 10.000 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ------------ --------- --------- ---------- --------- ----------- INIT DEPOSIT 31-Dec-86 1000.00 15.162980 65.95010 FEE 31-Dec-87 0.669 13.995299 0.04780 FEE 31-Dec-88 0.669 15.101812 0.04430 FEE 31-Dec-89 0.669 17.669928 0.03786 FEE 31-Dec-90 0.669 16.760562 0.03992 FEE 31-Dec-91 0.669 26.237088 0.02550 FEE 31-Dec-92 0.669 25.862407 0.02587 FEE 31-Dec-93 0.669 30.471461 0.02195 FEE 31-Dec-94 0.669 28.207377 0.02372 FEE 31-Dec-95 0.669 40.008767 0.01672 FEE 31-Dec-96 0.669 44.239754 0.01512 RESULTING VALUE 31-Dec-96 44.239754 65.65134 2904.3990 10.000 FORMULA: 1000*(1+T)= 2904.3990 -(0.85 *1000 * 0) = 2904.39901 Standardized Return = T = 11.25% R = 190.44% NLIC VAII QUALITY INCOME - ------------------------ 01-Mar-87 TO NO. YEARS 9.837 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- -------- ---------- --------- --------- 0 INIT DEPOSIT 01-Mar-87 1000.00 10.000000 100.00000 1 FEE 01-Mar-88 0.669 10.527512 0.06355 2 FEE 01-Mar-89 0.669 10.713983 0.06244 3 FEE 01-Mar-90 0.669 11.612835 0.05761 4 01-Mar-91 0.669 12.802895 0.05225 5 01-Mar-92 0.669 14.455299 0.04628 6 01-Mar-93 0.669 16.367151 0.04087 7 01-Mar-94 0.669 16.910795 0.03956 8 01-Mar-95 0.669 16.680983 0.04011 9 01-Mar-96 0.669 19.004160 0.03520 10 31-Dec-96 0.669 19.439970 0.03441 RESULTING VALUE 31-Dec-96 19.439970 99.52771 1934.8157 9.837 FORMULA: 1000*(1+T)= 1934.8157 = 1934.81565 Standardized Return = T = 6.94% R = 93.48% NLIC VAII STRATEGIST - -------------------- 01-Mar-87 TO NO. YEARS 9.837 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ------------ --------- -------- ---------- --------- ---------- 0 INIT DEPOSIT 01-Mar-87 1000.00 10.000000 100.00000 1 FEE 01-Mar-88 0.669 10.731322 0.06234 2 FEE 01-Mar-89 0.669 11.189186 0.05979 3 FEE 01-Mar-90 0.669 12.049398 0.05552 4 01-Mar-91 0.669 13.472113 0.04966 5 01-Mar-92 0.669 15.368011 0.04353 6 01-Mar-93 0.669 16.463313 0.04064 7 01-Mar-94 0.669 17.633337 0.03794 8 01-Mar-95 0.669 18.036454 0.03709 9 01-Mar-96 0.669 19.831432 0.03373 10 31-Dec-96 0.669 21.791756 0.03070 RESULTING VALUE 31-Dec-96 21.791756 99.54906 2169.3488 9.837 FORMULA: 1000*(1+T)= 2169.3488 = 2169.34879 Standardized Return = T = 8.19% R = 116.93% NLIC VAII DIVIDEND GROWTH - ------------------------- 01-Mar-90 TO NO. YEARS 6.836 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- -------- ---------- --------- ---------- 0 INIT DEPOSIT 01-Mar-90 1000.00 10.000000 100.00000 1 FEE 01-Mar-91 0.669 10.271708 0.06513 2 FEE 01-Mar-92 0.669 11.497121 0.05819 3 FEE 01-Mar-93 0.669 12.597068 0.05311 4 01-Mar-94 0.669 13.517273 0.04949 5 01-Mar-95 0.669 13.885937 0.04818 6 01-Mar-96 0.669 18.565514 0.03603 7 31-Dec-96 0.669 21.367455 0.03131 RESULTING VALUE 31-Dec-96 21.367455 99.65856 2129.4498 6.836 FORMULA: 1000*(1+T)= 2129.4498 = 2129.44977 Standardized Return = T = 11.69% R = 112.94% NLIC VAII UTILITIES - ------------------- 01-Mar-90 TO NO. YEARS 6.836 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- -------- ---------- --------- ---------- 0 INIT DEPOSIT 01-Mar-90 1000.00 10.000000 100.00000 1 FEE 01-Mar-91 0.669 10.645816 0.06284 2 FEE 01-Mar-92 0.669 11.791549 0.05674 3 FEE 01-Mar-93 0.669 14.580927 0.04588 4 01-Mar-94 0.669 14.667722 0.04561 5 01-Mar-95 0.669 14.373964 0.04654 6 01-Mar-96 0.669 17.625346 0.03796 7 31-Dec-96 0.669 18.736675 0.03571 RESULTING VALUE 31-Dec-96 18.736675 99.66873 1867.4605 6.836 FORMULA: 1000*(1+T)= 1867.4605 = 1867.46051 Standardized Return = T = 9.57% R = 86.75% NLIC VAII EUROPEAN GROWTH - ------------------------- 01-Mar-91 TO NO. YEARS 5.837 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- ------- ---------- --------- --------- 0 INIT DEPOSIT 01-Mar-91 1000.00 10.000000 100.00000 1 FEE 01-Mar-92 0.669 10.281783 0.06507 2 FEE 01-Mar-93 0.669 10.692710 0.06257 3 FEE 01-Mar-94 0.669 14.670442 0.04560 4 01-Mar-95 0.669 15.518580 0.04311 5 01-Mar-96 0.669 19.698013 0.03396 6 31-Dec-96 0.669 23.995252 0.02788 RESULTING VALUE 31-Dec-96 23.995252 99.72181 2392.8500 5.837 FORMULA: 1000*(1+T)= 2392.8500 = 2384.34998 Standardized Return = T = 16.05% R = 138.43% NLIC VAII CAPITAL GROWTH - ------------------------ 01-Mar-91 TO NO. YEARS 5.837 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- ------- ---------- --------- --------- 0 INIT DEPOSIT 01-Mar-91 1000.00 10.000000 100.00000 1 FEE 01-Mar-92 0.669 12.112740 0.05523 2 FEE 01-Mar-93 0.669 11.786966 0.05676 3 FEE 01-Mar-94 0.669 11.661460 0.05737 4 01-Mar-95 0.669 12.035899 0.05558 5 01-Mar-96 0.669 15.551208 0.04302 6 31-Dec-96 0.669 16.192376 0.04132 RESULTING VALUE 31-Dec-96 16.192376 99.69072 1614.2297 5.837 FORMULA: 1000*(1+T)= 1614.2297 = 1605.7297 Standardized Return = T = 8.45% R = 60.57% NLIC VAII PACIFIC GROWTH - ------------------------- 23-Feb-94 TO NO. YEARS 2.853 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- ------- ---------- --------- ---------- 0 INIT DEPOSIT 23-Feb-94 1000.00 9.997822 100.02178 1 FEE 23-Feb-95 0.669 8.594933 0.07784 2 FEE 23-Feb-96 0.669 10.339198 0.06471 3 FEE 31-Dec-96 0.669 9.788757 0.06834 RESULTING VALUE 31-Dec-96 9.788757 99.81090 977.0247 2.853 FORMULA: 1000*(1+T)= 977.0247 = 943.024672 Standardized Return = T = -2.04% R = -5.70% NLIC VAII GLOBAL DIVIDEND GROWTH - -------------------------------- 23-Feb-94 TO NO. YEARS 2.853 31-Dec-96 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE - ----------- -------- ------- ---------- --------- --------- 0 INIT DEPOSIT 23-Feb-94 1000.00 9.997822 100.02178 1 FEE 23-Feb-95 0.669 9.940666 0.06730 2 FEE 23-Feb-96 0.669 12.277162 0.05449 3 FEE 31-Dec-96 0.669 13.747230 0.04866 RESULTING VALUE 31-Dec-96 13.747230 99.85133 1372.6792 2.853 FORMULA: 1000*(1+T)= 1372.6792 = 1338.67923 Standardized Return = T = 10.77% R = 33.87%
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