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As filed with the Securities and Exchange
Registration No. 333-117329
Commission on February 27, 2007
Registration No. 811-08292
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
[X]
Pre-Effective Amendment No.
[ ]
Post-Effective Amendment No. 4
[X]
AMENDMENT TO REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940
[X]
(Check appropriate box or boxes.)
Security Life Separate Account L1
(Exact Name of Registrant)
Security Life of Denver Insurance Company
(Name of Depositor)
1290 Broadway
Denver, Colorado 80203-5699
(Address of Depositors Principal Executive Offices) (Zip Code)
(800) 525-9852
(Depositors Telephone Number, including Area Code)
J. Neil McMurdie, Counsel
ING Americas (U.S. Legal Services)
151 Farmington Avenue, TS31, Hartford, CT 06l56
(Name and Address of Agent for Service)
Jeffery R. Berry, Chief Counsel
ING Americas (U.S. Legal Services)
151 Farmington Avenue, Hartford, Connecticut 06156
It is proposed that this filing will become effective (check appropriate box):
[ ]
immediately upon filing pursuant to paragraph (b) of Rule 485
[ ]
on ____________, pursuant to paragraph (b) of Rule 485
[ ]
60 days after filing pursuant to paragraph (a)(1)
[X]
on April 30, 2007, 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.
PART A
INFORMATION REQUIRED IN A PROSPECTUS
ASSET ACCUMULATOR
A FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
issued by
Security Life of Denver Insurance Company and its Security Life Separate Account L1
The Policy | Fund Managers | |
· Is issued by Security Life of Denver Insurance Company. | [List to be updated by amendment.] | |
· Is returnable by you during the free look period if you are not satisfied. | Funds managed by the following investment | |
Premium Payments | managers are available through the policy: | |
· Are flexible, so the premium amount and frequency may vary. | · Alliance Capital Management, L.P. | |
· Are allocated to the variable account and the fixed account, based on your | · BAMCO, Inc. | |
instructions. | · BlackRock Investment Management, LLC | |
· Are subject to specified fees and charges. | · Capital Research and Management | |
The Policy Value | Company | |
· Is the sum of your holdings in the fixed account, the variable account and the | · Clarion Real Estate Securities L.P. | |
loan account. | · Columbia Management Advisors, LLC | |
· Has no guaranteed minimum value under the variable account. The value varies | · Evergreen Investment Management | |
with the value of the subaccounts you select. | Company, LLC. | |
· Has a minimum guaranteed rate of return for amounts in the fixed account. | · Fidelity Management & Research | |
· Is subject to specified fees and charges including possible surrender charges. | Company | |
Death Benefit Proceeds | · Ibbotson Associates | |
· Are paid if your policy is in force when the insured person dies. | · ING Investment Management Co. | |
· Are calculated under your choice of options: | · J.P. Morgan Investment Management, | |
- Option 1 - the base death benefit is the greater of the amount of base | Inc. | |
insurance coverage you have selected or your policy value multiplied by the | · Julius Baer Investment Management, | |
appropriate factor from the definition of life insurance factors described in | LLC | |
Appendix A; | · Legg Mason Capital Management, Inc. | |
- Option 2 - the base death benefit is the greater of the amount of base | · Lord, Abbett & Co., LLC | |
insurance coverage you have selected plus the policy value or your policy | · Marsico Capital Management, LLC | |
value multiplied by the appropriate factor from the definition of life insurance | · Massachusetts Financial Services | |
factors described in Appendix A; or | Company | |
- Option 3 - the base death benefit is the greater of the amount of base | · Morgan Stanley Investment Management, | |
insurance coverage you have selected plus premiums paid minus withdrawals | Inc. (d/b/a Van Kampen) | |
taken or your policy value multiplied by the appropriate factor from the | · Neuberger Berman, LLC | |
definition of life insurance factors described in Appendix A. | · Neuberger Berman Management, Inc. | |
· Are equal to the base death benefit plus any rider benefits minus any | · OppenheimerFunds, Inc. | |
outstanding loans, accrued loan interest and unpaid fees and charges. | · Pacific Investment Management | |
· Are generally not subject to federal income tax if your policy continues to meet | Company LLC | |
the federal income tax definition of life insurance. | · Pioneer Investment Management, Inc. | |
Sales Compensation | · T. Rowe Price Associates, Inc. | |
· We pay compensation to broker/dealers whose registered representatives sell | · UBS Global Asset Management | |
the policy. See Distribution of the Policies, page 69, for further information | (Americas) Inc. | |
about the amount of compensation we pay. | · Wells Capital Management, Inc. | |
|
|
This prospectus describes what you should know before purchasing the Asset Accumulator variable universal life insurance policy. Please read it carefully and keep it for future reference.
Neither the Securities and Exchange Commission (SEC) nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
The policy described in this prospectus is not a deposit with, obligation of or guaranteed or endorsed by any bank, nor is it insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency.
The date of this prospectus is April 30, 2007. |
TABLE OF CONTENTS | ||||||||
Page | Page | |||||||
POLICY SUMMARY | 3 | Termination of Coverage | 54 | |||||
The Policys Features and Benefits | 3 | TAX CONSIDERATIONS | 56 | |||||
Factors You Should Consider Before | Tax Status of the Company | 56 | ||||||
Purchasing a Policy | 6 | Tax Status of the Policy | 57 | |||||
Fees and Charges | 8 | Diversification and Investor Control Requirements | 57 | |||||
THE COMPANY, THE VARIABLE | Tax Treatment of Policy Death Benefits | 58 | ||||||
ACCOUNT AND THE FIXED ACCOUNT | 13 | Distributions Other than Death Benefits | 58 | |||||
Security Life of Denver Insurance Company | 13 | Other Tax Matters | 60 | |||||
The Investment Options | 15 | ADDITIONAL INFORMATION | 62 | |||||
DETAILED INFORMATION ABOUT | General Policy Provisions | 62 | ||||||
THE POLICY | 19 | Distribution of the Policies | 69 | |||||
Purchasing a Policy | 20 | Legal Proceedings | 71 | |||||
Fees and Charges | 24 | Financial Statements | 71 | |||||
Death Benefits | 30 | APPENDIX A | A-1 | |||||
Additional Insurance Benefits | 36 | APPENDIX B | B-1 | |||||
Policy Value | 44 | APPENDIX C | C-1 | |||||
Special Features and Benefits | 46 | MORE INFORMATION IS AVAILABLE | Back Cover |
TERMS TO UNDERSTAND |
The following is a list of some of the key defined terms and the page number on which each is defined:
Page Where | Page Where | |||||
Term | Defined | Term | Defined | |||
Age | 20 | Policy Date | 20 | |||
Fixed Account | 5 | Policy Value | 44 | |||
Fixed Account Value | 44 | Segment or Coverage Segment | 31 | |||
Loan Account | 46 | Surrender Value | 5 | |||
Loan Account Value | 46 | Target Premium | 22 | |||
Monthly Processing Date | 26 | Valuation Date | 45 | |||
Net Premium | 3 | Variable Account | 4 | |||
Net Policy Value | 4 | Variable Account Value | 44 |
Security Life, we, us, our and the company refer to Security Life of Denver Insurance Company. You and your refer to the policy owner. The owner is the individual, entity, partnership, representative or party who may exercise all rights over the policy and receive the policy benefits during the insured persons lifetime.
State Variations - State variations are covered in a special policy form used in that state. This prospectus provides a general description of the policy. Your actual policy and any riders are the controlling documents. If you would like to review a copy of the policy and riders, contact our Customer Service Center or your agent/registered representative.
You may contact us about the policy at our: | Customer Service Center | |
P.O. Box 5065 | ||
Minot, ND 58702-5065 | ||
1-877-253-5050 | ||
www.ingservicecenter.com | ||
Asset Accumulator | ||
2 |
POLICY SUMMARY |
This summary highlights the features and benefits of the policy, the risks that you should consider before purchasing a policy and the fees and charges associated with the policy and its benefits. More detailed information is included in the other sections of this prospectus that should be read carefully before you purchase the policy.
The Policys Features and Benefits |
The Policy | · This prospectus describes our standard Asset Accumulator variable universal life | |
insurance policy. The policy provides death benefits, policy values and other features of | ||
traditional life insurance contracts. There may be variations in policy features, benefits | ||
and charges because of requirements of the state where we issue your policy. We | ||
describe all such differences in your policy. | ||
· If you would like to know about state variations, please ask your agent/registered | ||
representative. We can provide him/her with the list of variations that will apply to your | ||
policy. | ||
| ||
Premium Payments | · You choose when to pay and how much to pay. | |
· You will need to pay sufficient premiums to keep the policy in force. Failure to pay | ||
See Premium Payments, | sufficient premiums may cause your policy to lapse. | |
page 21. | · You cannot pay additional premiums after age 100. | |
· We may refuse any premium that would disqualify your policy as life insurance under | ||
Section 7702 of the Internal Revenue Code. | ||
· We deduct a premium expense charge from each premium payment and credit the | ||
remaining premium (the net premium) to the variable account or the fixed account | ||
according to your instructions. | ||
| ||
Free Look Period | · During the free look period, you have the right to examine your policy and return it for a | |
refund if you are not satisfied for any reason. | ||
See Free Look Period, | · The free look period is generally ten days from your receipt of the policy, although | |
page 23. | certain states may allow more than ten days. The length of the free look period that | |
applies in your state will be stated in your policy. | ||
· Generally, there are two types of free look refunds: | ||
- Some states require a return of all premium we have received; and | ||
- Other states require that we return your policy value plus a refund of all fees and | ||
charges deducted. | ||
The free look refund that applies in your state will be stated in your policy. | ||
· During the free look period, your net premium will be allocated among the investment | ||
options you have selected unless your state requires a return of premium as the free look | ||
refund. In these states your net premium directed to the subaccounts will be allocated to | ||
the ING Liquid Assets Portfolio until after the free look period ends. | ||
| ||
Death Benefits | · Death benefits are paid if your policy is in force when the insured person dies. | |
· Until age 100, the amount of the death benefit will depend on which death benefit option | ||
See Death Benefits, page | is in effect when the insured person dies. | |
30. | · There are three death benefit options available under your policy: | |
- Option 1 - the base death benefit is the greater of the amount of base insurance | ||
coverage you have selected or your policy value multiplied by the appropriate factor | ||
from the definition of life insurance factors described in Appendix A; | ||
- Option 2 - the base death benefit is the greater of the amount of base insurance | ||
coverage you have selected plus your policy value or your policy value multiplied by | ||
the appropriate factor from the definition of life insurance factors described in | ||
Appendix A; or | ||
- Option 3 - the base death benefit is the greater of the amount of base insurance | ||
coverage you have selected plus premiums paid minus withdrawals taken or your | ||
policy value multiplied by the appropriate factor from the definition of life insurance | ||
factors described in Appendix A. | ||
| ||
Asset Accumulator 3 | ||
Death Benefits | · After age 100, death benefit Option 1 will apply to all policies and the amount of base | |||
(Continued) | insurance coverage selected will equal the amount of base insurance coverage in effect | |||
on the policy anniversary nearest the insured persons 100th birthday plus the amount of | ||||
coverage, if any, under the Adjustable Term Insurance Rider on that date. | ||||
· We will reduce the death benefit proceeds payable under any death benefit option by | ||||
any outstanding loans, accrued loan interest and unpaid fees and charges. | ||||
· The death benefit is generally not subject to federal income tax if your policy continues | ||||
to meet the federal income tax definition of life insurance. | ||||
| ||||
Death Benefit | · Your policy will not lapse as long as your policy value minus any loan account value | |||
Guarantees | and accrued loan interest (the net policy value) is enough to pay the periodic fees and | |||
charges when due. | ||||
· Even if your net policy value is not enough to pay the periodic fees and charges, when | ||||
See Death Benefit | due, the policy has two optional death benefit guarantees that can keep your policy from | |||
Guarantees, page 36. | lapsing: | |||
- For issue ages 25-75, the 20-Year/Age 65 death benefit guarantee is an optional | ||||
benefit that may be available, but only when you apply for the policy. If you select | ||||
this guarantee, your policy and any Adjustable Term Insurance Rider coverage is | ||||
guaranteed not to lapse for the greater of 20 years or to age 65 provided: | ||||
- | Your cumulativeremium payments, minus any partial withdrawals or loans, are | |||
at least equal to the sum of the 20-Year/Age 65 death benefit guarantee premium | ||||
payments to the next monthly processing date; and | ||||
- | Your net policy value meets certain diversification requirements. | |||
There is a separate monthly charge for this guarantee. | ||||
- For issue ages 25-75, the lifetime death benefit guarantee is an optional benefit that | ||||
may be available, but only when you apply for the policy. If you select this | ||||
guarantee, your policy and any Adjustable Term Insurance Rider coverage is | ||||
guaranteed not to lapse for the lifetime of the insured person provided: | ||||
- | Your cumulative premium payments, minus any partial withdrawals or loans, are | |||
at least equal to the sum of the lifetime death benefit guarantee premium | ||||
payments to the next monthly processing date; and | ||||
- | Your net policy value meets certain diversification requirements. | |||
There is a separate monthly charge for this guarantee. | ||||
· The death benefit guarantees are subject to state approval and may not be available in | ||||
some states. | ||||
| ||||
Temporary | · If you apply and qualify, we may issue temporary insurance equal to the total amount of | |||
Insurance | insurance coverage for which you applied. | |||
· The maximum amount of temporary insurance is $1 million, which includes other in- | ||||
force coverage you have with us. | ||||
See Temporary | · Temporary insurance may not be available in all states. | |||
Insurance, page 23. | ||||
| ||||
Rider Benefits | · Your policy may include additional insurance benefits, attached by rider. There are two | |||
types of rider benefits: | ||||
See Additional Insurance | - Optional rider benefits that you must select before they are effective; and | |||
Benefits, page 36. | - Rider benefits that automatically come with your policy. | |||
· In many cases, we deduct an additional monthly charge for these benefits. | ||||
· Not all riders may be available under your policy or in your state. | ||||
| ||||
Investment Options | · You may allocate your net premiums to the subaccounts of Security Life Separate | |||
Account L1 (the variable account) and to our fixed account. | ||||
See The Investment | · The variable account is one of our separate accounts and consists of subaccounts | |||
Options, page 13. | that invest in corresponding funds. When you allocate premiums to a subaccount, we | |||
invest any net premiums in shares of the corresponding fund. | ||||
· Your variable account value will vary with the investment performance of the funds | ||||
underlying the subaccounts and the charges we deduct from your variable account value. | ||||
| ||||
Asset Accumulator 4 | ||||
Investment Options | · The fixed account is part of our general account and consists of all of our assets other | |
(Continued) | than those in our separate accounts (including the variable account) and loan account. | |
· We credit interest of at least 3.00% per year on amounts allocated to the fixed account, | ||
and we may, in our sole discretion, credit interest in excess of this amount. | ||
| ||
Transfers | · You currently may make an unlimited number of transfers between the subaccounts and | |
to the fixed account each policy year. Transfers are, however, subject to any limits, | ||
See Transfers, page 48. | conditions and restrictions that we or the funds whose shares are involved may impose. | |
· There are certain restrictions on transfers from the fixed account. | ||
· We do not charge for transfers. | ||
| ||
Asset Allocation | · Dollar cost averaging is a systematic program of transferring policy values to selected | |
Programs | subaccounts of the variable account. It is intended to help reduce the risk of investing | |
too much when the price of a funds shares is high. It also helps to reduce the risk of | ||
investing too little when the price of a funds shares is low. | ||
See Dollar Cost | · Automatic rebalancing is a systematic program through which your variable and fixed | |
Averaging, page 48. | account values are periodically reallocated among your selected investment options to | |
maintain the allocation percentages you have chosen. | ||
See Automatic | · There is no charge to participate in these asset allocation programs. There are, however, | |
Rebalancing, page 49. | certain conditions on participation in these asset allocation programs. | |
· Neither of these asset allocation programs assures a profit nor do they protect you | ||
against a loss in a declining market. | ||
| ||
Loans | · After the first policy month, you may take loans against your policys surrender value. | |
· A loan must be at least $100 and is generally limited to your surrender value less the | ||
See Loans, page 46. | periodic fees and charges to your next policy anniversary (or periodic fees and charges | |
for the next 13 months if you take a loan within the 30-day period before your next | ||
policy anniversary). | ||
· When you take a loan we transfer an amount equal to your loan to the loan account as | ||
collateral for your loan. The loan account is part of our general account. | ||
· We credit amounts held in the loan account with interest at an annual rate no less than | ||
3.00%. | ||
· We also charge interest on loans. Interest is due in arrears on each policy anniversary | ||
and accrues daily at a current annual rate of 3.75% in policy years one through five and | ||
at a current rate of 3.00% (guaranteed not to exceed 3.15%) in all years thereafter. | ||
· Loans reduce your policys death benefit and may cause your policy to lapse. | ||
· Loans may have tax consequences, and you should consult with a qualified tax adviser | ||
before taking a loan against your policys surrender value. | ||
| ||
Partial Withdrawals | · After the first policy year, you may take up to 12 partial withdrawals each policy year. | |
In certain circumstances you may take partial withdrawals during the first policy year. | ||
See Partial | · A partial withdrawal must be at least $100 and may not exceed the amount which leaves | |
Withdrawals, | your surrender value less than $500. | |
page 52. | · We charge a fee of $10 for each partial withdrawal. | |
· Partial withdrawals may reduce the amount of base and total insurance coverage under | ||
your policy and will reduce your policy value. | ||
· Partial withdrawals may also have tax consequences, and you should consult with a | ||
qualified tax adviser before taking a partial withdrawal from your policy. | ||
| ||
Surrenders | · You may surrender your policy for its surrender value at any time after the free look | |
period while the insured person is alive. | ||
See Surrender, | · Your surrender value is your policy value minus any surrender charge and your | |
page 54. | outstanding loan amount and accrued loan interest. | |
· Surrender charges apply for the first nine years of each segment of base insurance | ||
coverage. Surrender charge rates increase after the first segment year, remain level | ||
during segment years two through five and then decrease uniformly each segment year | ||
thereafter to zero at the beginning of the tenth segment year. Surrender charge rates vary | ||
by the insured persons age at the time each base insurance coverage segment is | ||
established. | ||
· All insurance coverage ends on the date we receive your surrender request. | ||
| ||
Asset Accumulator 5 | ||
Surrenders | · If you surrender your policy it cannot be reinstated. | |
(continued) | · Surrendering the policy may have tax consequences, and you should consult with a | |
qualified tax adviser before surrendering your policy. | ||
| ||
Reinstatement | · You may reinstate your policy (other than the death benefit guarantee) and riders within | |
five years of lapse if you still own the policy and did not surrender it and the insured | ||
See Reinstatement, | person is still insurable. | |
page 56. | · You will need to pay the required reinstatement premium. | |
· If you had an outstanding loan when coverage lapsed, we will reinstate it with accrued | ||
loan interest to the date of the lapse. | ||
· When we reinstate your policy, we reinstate the surrender charges for the amount and | ||
time remaining when your policy lapsed. | ||
· A policy that is reinstated more than 90 days after lapsing may be considered a modified | ||
endowment contract for tax purposes. | ||
· Reinstating your policy may have tax consequences, and you should consult with a | ||
qualified tax adviser before reinstating your policy. | ||
|
Factors You Should Consider Before Purchasing a Policy
The decision to purchase a policy should be discussed with your agent/registered representative. Make sure you understand the policys investment options, its other features and benefits, its risks and the fees and charges you will incur when, together with your agent/registered representative, you consider an investment in the policy.
Life Insurance | · The policy is not a short-term savings vehicle and should be purchased only if you need | |
Coverage | life insurance coverage. Evaluate your need for life insurance coverage before | |
purchasing a policy. | ||
· You should purchase a policy only if you intend and have the financial capability to | ||
keep the policy in force for a substantial period of time. | ||
| ||
Fees and Charges | · In the early policy years the surrender charge may exceed the policy value because the | |
surrender charge may be more than the cumulative premiums minus policy fees and | ||
See Fees and Charges, | charges. Therefore, you should purchase a policy only if you intend and have the | |
page 24. | financial capability to keep the policy in force for a substantial period of time. | |
· The policys fees and charges reflect the costs associated with its features and benefits, | ||
the services we render, the expenses we expect to incur and the risks we assume under | ||
the policy. | ||
· We believe that the policys fees and charges, in the aggregate, are reasonable, but | ||
before purchasing a policy you should compare the value that the policys various | ||
features and benefits and the available services have to you, given your particular | ||
circumstances, with the fees and charges associated with those features, benefits and | ||
services. | ||
| ||
Lapse | · Your policy may lapse and your insurance coverage under the policy may terminate if | |
on any monthly processing date: | ||
See Lapse, page 55. | - A death benefit guarantee is not in effect; and | |
- Your net policy value is not enough to pay the periodic fees and charges when due. | ||
· If you meet these conditions, we will send you notice and give you a 61 day grace | ||
period to make a sufficient premium payment. | ||
· If you do not make a sufficient premium payment by the end of the 61 day grace period, | ||
your life insurance coverage will terminate and your policy will lapse without value. | ||
· Partial withdrawals and loans have an adverse impact on your net policy value. Before | ||
taking a partial withdrawal or loan consider its effect on your ability to keep your policy | ||
from lapsing. | ||
| ||
Exchanges | · Replacing your existing life insurance policy(ies) and/or annuity contracts with the | |
policy described in this prospectus may not be beneficial to you. | ||
See Purchasing a Policy, | · Before purchasing a policy, determine whether your existing policy(ies) and/or | |
page 20. | contracts will be subject to fees or penalties upon surrender or cancellation. | |
| ||
Asset Accumulator 6 | ||
Exchanges | · Also compare the fees, charges, coverage provisions and limitations, if any, of your | |||
(Continued) | existing policy(ies) and/or contracts with those of the policy described in this | |||
prospectus. | ||||
| ||||
Investment Risk | · You should evaluate the policys long-term investment potential and risks before | |||
purchasing a policy. | ||||
See The Variable | · For amounts you allocate to the subaccounts of the variable account: | |||
Account, page 15. | - Your values will fluctuate with the markets, interest rates and the performance of the | |||
underlying funds; | ||||
- You assume the risk that your values may decline or may not perform to your | ||||
expectations; | ||||
- Your policy could lapse without value or you may be required to pay additional | ||||
premium because of poor fund performance; | ||||
- Each fund has various investment risks, and some funds are riskier than others; | ||||
- You should read each funds prospectus and understand the risks associated with the | ||||
fund before allocating your premiums to its corresponding subaccount; and | ||||
- There is no assurance that any fund will achieve its stated investment objective. | ||||
· For amounts you allocate to the fixed account: | ||||
- Interest rates we declare will change over time; and | ||||
- You assume the risk that interest rates may decline, although never below the | ||||
guaranteed minimum annual rate of 3.00%. | ||||
| ||||
Taxation | · Under current federal income tax law, death benefits of life insurance policies generally | |||
are not subject to income tax. In order for this treatment to apply, the policy must | ||||
See TAX | qualify as a life insurance contract. We believe it is reasonable to conclude that the | |||
CONSIDERATIONS, | policy will qualify as a life insurance contract. | |||
page 56. | · Assuming the policy qualifies as a life insurance contract under current federal income | |||
tax law, your policy earnings are generally not subject to income tax as long as they | ||||
remain within your policy. Depending on your circumstances, however, the following | ||||
events may have tax consequences for you: | ||||
- Reduction in the amount of your insurance coverage | - Surrender | |||
- Partial withdrawals | - Lapse | |||
- Loans | - Reinstatement | |||
· In addition, if your policy is a modified endowment contract, a partial withdrawal, | ||||
surrender or a loan against or secured by the policy will cause income taxation to the | ||||
extent of any gain in the policy. A penalty tax may be imposed on a distribution from a | ||||
modified endowment contract as well. | ||||
· There is always the possibility that the tax treatment of the policy could be changed by | ||||
legislation or otherwise. You should consult a qualified tax adviser with respect to | ||||
legislative developments and their effect on the policy. legislative developments and their effect on the policy. | ||||
· Consult with a qualified legal or tax adviser before you purchase a policy. | ||||
| ||||
Sales Compensation | · We pay compensation to broker/dealers whose registered representatives sell the policy. | |||
· Broker/dealers may be able to choose to receive their compensation under various | ||||
See Distribution of the | payment options, but their choice will not affect the fees and charges you will pay for | |||
Policies, page 69. | the policy. | |||
· We generally pay more compensation on premiums paid for base insurance coverage | ||||
than we do on premiums paid for coverage under the Adjustable Term Insurance Rider. | ||||
Talk to your agent/representative about the right blend of base coverage and Adjustable | ||||
Term Insurance Rider coverage for you. | ||||
| ||||
Other Products | · We and our affiliates offer other insurance products that may have different | |||
features, benefits, fees and charges. These other products may better match your | ||||
needs. | ||||
· Contact your agent/registered representative if you would like information about these | ||||
other products. | ||||
| ||||
Asset Accumulator 7 | ||||
Fees and Charges |
The following tables describe the fees and charges you will pay when buying, owning and surrendering the policy.
Transaction Fees and Charges. The following table describes the fees and charges deducted at the time you buy the policy, make a partial withdrawal, surrender your policy or request an excess illustration. See Transaction Fees and Charges, page 24.
Charge | When Deducted | Amount Deducted | ||
|
|
| ||
Premium Expense | · Deducted when you make a | · 9.50% of premium up to target premium and 8.50% of | ||
Charge 1 | premium payment. | premium in excess of target premium in segment year | ||
1, and lower thereafter. | ||||
|
|
| ||
Partial Withdrawal | · Deducted when you take a partial | · $10. | ||
Fee | withdrawal. | |||
|
|
| ||
Surrender Charge 2 | · Deducted during the first nine | · Minimum rates - $2.56 per $1,000 of base insurance | ||
segment years when you | coverage. | |||
surrender your policy, decrease | · Maximum rates - $47.78 per $1,000 of base insurance | |||
your base insurance coverage, | coverage. | |||
take a partial withdrawal which | · Rates for a representative insured person - $12.50 | |||
decreases your base insurance | per $1,000 of base insurance coverage. The | |||
coverage or allow your policy to | representative insured person is a male, age 35. | |||
lapse. | ||||
|
|
| ||
Excess Illustration | · Deducted each time you request | · $25 - maximum. | ||
Fee | an illustration after the first each | · $0 - current. | ||
policy year. | ||||
|
|
| ||
Overloan | · On the monthly processing date | · 3.50% of the policy value. 3 | ||
Lapse Protection | on or next following the date | |||
Rider | we receive your request to | |||
exercise the rider benefit. | ||||
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|
|
1 | In Pennsylvania the guaranteed maximum premium expense charge is 9.50% of all premium in all years. |
2 | The surrender charge rates shown are for the second through fifth segment years. Surrender charge rates increase after the first segment year, remain level during segment years two through five and then decrease uniformly each segment year thereafter to zero at the beginning of the tenth segment year. The rates that apply to you depend on the insured persons gender and age. The rates for the representative insured person listed above may be more or less than you will pay, and you should contact your agent/registered representative for information about the rates that apply to you. |
3 Your policy value is the sum of your holdings in the fixed account, the variable account and the loan account.
Asset Accumulator 8 |
Periodic Fees and Charges. The following table describes the fees and charges deducted each month on the monthly processing date, not including fund fees and expenses. See Periodic Fees and Charges, page 26.
Charge | When Deducted | Amount Deducted | ||
|
|
| ||
Cost of Insurance | · On the monthly | · Minimum Rates per $1,000 of base insurance coverage - | ||
Charge 4 | processing date. | - $0.02 - current. | ||
- $0.06 - guaranteed. | ||||
· Maximum Rates per $1,000 of base insurance coverage - | ||||
- $9.84 - current. | ||||
- $18.83 - guaranteed. | ||||
· Rates for a representative insured person per $1,000 of base | ||||
insurance coverage - | ||||
- $0.07 - current. | ||||
- $0.18 - guaranteed. | ||||
- The representative insured person is a male, age 35 in the | ||||
preferred no tobacco risk class. | ||||
|
|
| ||
Mortality & Expense | · On the monthly | · Percentage of policy value invested in the variable account - | ||
Risk Charge 5 | processing date. | - 0.038% in policy years 1 - 5 (0.45% on an annual basis), | ||
and lower thereafter | ||||
|
|
| ||
Policy Charge 6 | · On the monthly | · $20 per month in policy years 1 - 10 and lower thereafter. | ||
processing date. | ||||
|
|
| ||
Administrative | · On the monthly | · Minimum Rates per $1,000 of base insurance coverage (or | ||
Charge 7 | processing date. | total insurance coverage, if greater) - | ||
- $0.01. | ||||
· Maximum Rates per $1,000 of base insurance coverage (or | ||||
total insurance coverage, if greater) - | ||||
- $0.50. | ||||
· Rates for a representative insured person per $1,000 of base | ||||
insurance coverage (or total insurance coverage, if greater) - | ||||
- $0.02. | ||||
- The representative insured person is age 35. | ||||
|
|
| ||
Loan Interest Charge | · Accrues daily but is | · 3.75% per annum of the amount held in the loan account in | ||
due in arrears on each | policy years 1 - 5, and lower thereafter. | |||
policy anniversary. | ||||
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|
|
4 | The minimum and maximum rates shown are for an insured person in the standard risk class. The cost of insurance rates shown are for the first policy year. The rates have been rounded to the nearest penny. Consequently, the actual rates are either more or less than these rounded rates. The rates that apply to you depend on the amount of your base insurance coverage and the insured persons age, gender, policy duration and risk class and generally increase each year after the first segment year. Different cost of insurance rates will apply to each segment of base insurance coverage. A segment or coverage segment is a block of insurance coverage. The rates for the representative insured person listed above may be more or less than you will pay, and you should contact your agent/registered representative for information about the rates that apply to you. The guaranteed maximum cost of insurance rates for an insured perso n in the substandard risk class is $83.33 per $1,000 of base insurance coverage. |
5 | The monthly mortality and expense risk charge rate has been rounded to the nearest one hundredth of one percent. Consequently, the actual rates are either more or less than these rounded rates. See Mortality and Expense Risk Charge, page 26, for the monthly rate without rounding. |
6 | The charge shown is for policies issued on a guaranteed issue basis. For fully underwritten policies the Policy Charge is $15 per month during the first ten policy years and lower thereafter. After the tenth policy year the Policy Charge is $7.50 per month for both guaranteed issue policies and fully underwritten policies. |
7 | The administrative charge applies to the first $10 million of coverage and decreases after the tenth policy year. The rates shown have been rounded to the nearest penny. Consequently, the actual rates are either more or less than these rounded rates. The rates vary depending on the issue age of the insured person and the rates for the representative insured person listed above may be more or less than you will pay. You should contact your agent/registered representative for information about the rates that apply to you. |
Asset Accumulator 9 |
Optional Rider Fees and Charges. The following table describes the charges deducted if you elect any of the optional rider benefits. See Optional Rider Fees and Charges, page 28.
Rider | When Deducted | Amount Deducted | ||
|
|
| ||
Adjustable Term | · On the monthly | · Minimum Rates per $1,000 of rider benefit - | ||
Insurance Rider 8 | processing date. | - $0.01 - current. | ||
- $0.07 - guaranteed. | ||||
· Maximum Rates per $1,000 of rider benefit - | ||||
- $3.47 - current. | ||||
- $23.65 - guaranteed. | ||||
· Rates for a representative insured person per $1,000 of rider | ||||
benefit - | ||||
- $0.02 - current. | ||||
- $0.22 - guaranteed. | ||||
- The representative insured person is a male age 35 in the | ||||
preferred no tobacco risk class. | ||||
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|
| ||
20-Year/Age 65 Death | · On each monthly | · Minimum Rates - $0.01 per $1000 of guaranteed coverage. | ||
Benefit Guarantee | processing date | · Maximum Rates - $0.02 per $1000 of guaranteed coverage. | ||
Rider Charge 9 | during the guarantee | · Rates for a representative insured person - $0.01 per $1000 | ||
period. | of guaranteed coverage. The representative insured person is | |||
age 45. | ||||
|
|
| ||
Lifetime Death Benefit | · On each monthly | · Minimum Rates - $0.02 per $1000 of guaranteed coverage. | ||
Guarantee Rider | processing date | · Maximum Rates - $0.06 per $1000 of guaranteed coverage. | ||
Charge 9 | during the guarantee | · Rates for a representative insured person - $0.02 per $1000 | ||
period. | of guaranteed coverage. The representative insured person is | |||
age 45. | ||||
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|
| ||
Waiver of Cost of | · On the monthly | · Minimum Rates - $6.20 per $100 of rider coverage. | ||
Insurance Rider 10 | processing date. | · Maximum Rates - $19.48 per $100 of rider coverage. | ||
· Rates for a representative insured person - $7.43 per | ||||
$100 of rider coverage. The representative insured person is | ||||
age 40. | ||||
|
|
| ||
Waiver of Specified | · On the monthly | · Minimum Rates - $1.70 per $100 of rider coverage. | ||
Premium Rider 10 | processing date. | · Maximum Rates - $25.40 per $100 of rider coverage. | ||
· Rates for a representative insured person - $2.20 per | ||||
$100 of rider coverage. The representative insured person is | ||||
age 35. | ||||
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|
|
8 | The rates shown are for the first policy year and have been rounded to the nearest penny. Consequently, the actual rates are either more or less than these rounded rates. The rates for a particular rider depend on various factors that may include the insured persons age, gender, policy duration and/or risk class. Rates generally increase each year after the first policy year. The rates for the representative insured person listed above may be more or less than you will pay, and you should contact your agent/registered representative for information about the rates that apply to you. |
9 | The rates for these guarantees depend on the insured persons age at issue. The minimum rate and the representative rate for the 20-year/Age 65 Death Benefit Guarantee Rider have been rounded up to the nearest penny, and the actual rates may be more or less than these rounded rates. The other rates stated have been rounded to the nearest penny, consequently, the actual rates may be more or less than these rounded rates. The rates for the representative insured person listed above may be more or less than you will pay, and you should contact your agent/registered representative for information about the rates that apply to you. |
10 | The minimum rates and rates for a representative insured shown are for the first policy year. The rates for a particular rider depend on various factors that may include the insured persons age, gender, policy duration and/or risk class. Rates generally increase each year after the first policy year. The rates for the representative insured person listed above may be more or less than you will pay, and you should contact your agent/registered representative for information about the rates that apply to you. |
Asset Accumulator 10 |
Fund Fees and Expenses. The following table shows the minimum and maximum total gross annual fund fees and expenses that you may pay during the time you own the policy. These may change from year to year. You should review the fund prospectuses for details about the fees and charges specific to a particular fund. See Fund Fees and Expenses, page 28.
Annual Total Fund Expenses (expenses deducted from fund assets) [Table to be updated by amendment.]
Minimum | Maximum | |||
Total Gross Annual Fund Expenses 11 | X.XX% | X.XX% | ||
11 Total Gross Annual Fund Expenses include management fees, distribution (12b-1) fees and other expenses.
Asset Accumulator 11 |
Asset Accumulator 12
THE COMPANY, THE VARIABLE ACCOUNT
AND THE FIXED ACCOUNT
Security Life of Denver Insurance Company
We are a stock life insurance company organized in 1929 and incorporated under the laws of the State of Colorado. We are admitted to do business in the District of Columbia and all states except New York. Our headquarters is at 1290 Broadway, Denver, Colorado 80203-5699.
We are a wholly owned indirect subsidiary of ING Groep N.V., a global financial institution active in the fields of insurance, banking and asset management. ING Groep N.V. is headquartered in Amsterdam, The Netherlands. Although we are an indirect subsidiary of ING Groep N.V., ING Groep N.V. is not responsible for the obligations under the policy. The obligations under the policy are solely the responsibility of Security Life of Denver Insurance Company.
Regulatory Developments - The Company and the Industry
As with many financial services companies, Security Life and its affiliates have received informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the financial services industry. In each case, the company and its affiliates have been and are providing full cooperation.
Insurance and Other Regulatory Matters The New York Attorney General (the NYAG), other federal and state regulators and self-regulatory agencies are also conducting broad inquiries and investigations involving the insurance industry. These initiatives currently focus on, among other things, compensation, revenue sharing, and other sales incentives; potential conflicts of interest; potential anti-competitive activity; reinsurance; marketing practices; specific product types (including group annuities and indexed annuities); and disclosure. It is likely that the scope of these industry investigations will further broaden before they conclude. The company and certain of its U.S. affiliates have received formal and informal requests in connection with such investigations, and are cooperating fully with each request.
Some of these matters could result in regulatory action involving U.S. subsidiaries of ING These initiatives also may result in new legislation and regulation that could significantly affect the financial services industry, including businesses in which the company is engaged In light of these and other developments, U.S. affiliates of ING, including the company, periodically review whether modifications to their business practices are appropriate.
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Investment Product Regulatory Issues. Since 2002, there has been increased governmental and regulatory activity relating to mutual funds and variable insurance products. This activity has primarily focused on inappropriate trading of fund shares; directed brokerage; compensation; sales practices, suitability, and supervision; arrangements with service providers; pricing; compliance and controls; adequacy of disclosure; and document retention.
In addition to responding to governmental and regulatory requests on fund trading issues, ING management, on its own initiative, conducted, through special counsel and a national accounting firm, an extensive internal review of mutual fund trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel.
The internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within the variable insurance and mutual fund products of certain subsidiaries of ING, and identified other circumstances where frequent trading occurred despite measures taken by ING intended to combat market timing. Each of the arrangements has been terminated and disclosed to regulators, to the independent trustees of ING Funds (U.S.) and in company reports previously filed with the SEC pursuant to the Securities Exchange Act of 1934, as amended.
Action may be taken by regulators with respect to the company or certain affiliates before investigations relating to fund trading are completed. The potential outcome of such action is difficult to predict but could subject the company or certain affiliates to adverse consequences, including, but not limited to, settlement payments, penalties, and other financial liability. It is not currently anticipated, however, that the actual outcome of any such action will have a material adverse effect on ING or INGs U.S.-based operations, including the company.
ING has agreed to indemnify and hold harmless the ING Funds from all damages resulting from wrongful conduct by ING or the employees of its subsidiaries or from INGs internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the SEC. Management reported to the ING Funds Board that ING management believes that the total amount of any indemnification obligations will not be material to ING or INGs U.S.-based operations, including the company.
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The Investment Options |
You may allocate your premium payments to any of the available investment options. These options include subaccounts of the variable account and the fixed account. The investment performance of a policy depends on the performance of the investment options you choose.
The Variable Account |
We established Security Life Separate Account L1 on November 3, 1993, as one of our separate accounts under the laws of the State of Colorado. It is a unit investment trust, registered with the SEC under the Investment Company Act of 1940, as amended (1940 Act).
We own all of the assets of the variable account and are obligated to pay all amounts due under a policy according to the terms of the policy. Income, gains and losses credited to, or charged against, the variable account reflect the investment experience of the variable account and not the investment experience of our other assets. Additionally, Colorado law provides that we cannot charge the variable account with liabilities arising out of any other business we may conduct. This means that if we ever became insolvent, the variable account assets will be used first to pay variable account policy claims. Only if variable account assets remain after these claims have been satisfied can these assets be used to pay owners of other policies and creditors.
The variable account is divided into subaccounts. Each subaccount invests in a corresponding fund. When you allocate premium payments to a subaccount, you acquire accumulation units of that subaccount. You do not invest directly in or hold shares of the funds when you allocate premium payments to the subaccounts of the variable account.
Funds Available Through the Variable Account. The following chart lists the funds that are available through the variable account. For additional information about each funds investment adviser/subadviser and investment objective, see Appendix B to this prospectus. More detailed information about each fund can be found in each funds current prospectus.
In the policy the variable account is referred to as the Separate Account.
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· American Growth Fund (Class 2) | · ING Stock Index Portfolio (Class I) | |
· American Growth-Income Fund (Class 2) | · ING T. Rowe Price Capital Appreciation | |
· American International Fund (Class 2) | Portfolio (Class I) | |
· Fidelity® VIP Contrafund® Portfolio | · ING T. Rowe Price Equity Income Portfolio | |
(Service Class) | (Class I) | |
· Fidelity® VIP Equity-Income Portfolio | · ING UBS U.S. Allocation Portfolio (Class S) | |
(Service Class) | · ING Van Kampen Growth and Income | |
· ING AllianceBernstein Mid Cap Growth | Portfolio (Class S) | |
Portfolio (Class I) | · ING VP Index Plus International Equity | |
· ING BlackRock Large Cap Growth Portfolio | Portfolio (Class S) | |
(Class I) | · ING Wells Fargo Small Cap Disciplined | |
· ING Evergreen Health Sciences Portfolio | Portfolio (Class S) | |
(Class I) | · ING Baron Small Cap Growth Portfolio (I | |
· ING Evergreen Omega Portfolio (Class I) | Class) | |
· ING FMRSM Diversified Mid Cap Portfolio | · ING Columbia Small Cap Value II Portfolio | |
(Class I) | (I Class) | |
· ING FMRSM Large Cap Growth Portfolio | · ING JP Morgan Mid Cap Value Portfolio | |
(Class I) | (I Class) | |
· ING Global Resources Portfolio (Class I) | · ING Lord Abbett U.S. Government | |
· ING JPMorgan Emerging Markets Equity | Securities Portfolio (I Class) | |
Portfolio (Class I) | · ING Neuberger Berman Partners Portfolio | |
· ING JPMorgan Small Cap Core Equity | (I Class) | |
Portfolio (Class I) | · ING Neuberger Berman Regency Portfolio | |
· ING JPMorgan Value Opportunities Portfolio | (I Class) | |
(Class I) | · ING Oppenheimer Global Portfolio (I Class) | |
· ING Julius Baer Foreign Portfolio (Class I) | · ING Oppenheimer Strategic Income Portfolio | |
· ING Legg Mason Value Portfolio (Class I) | (S Class) | |
· ING Lifestyle Aggressive Growth Portfolio | · ING PIMCO Total Return Portfolio (I Class) | |
(Class I) | · ING T. Rowe Price Diversified Mid Cap | |
· ING LifeStyle Growth Portfolio (Class I) | Growth Portfolio (I Class) | |
· ING LifeStyle Moderate Growth Portfolio | · ING UBS U.S. Large Cap Equity Portfolio | |
(Class I) | (I Class) | |
· ING LifeStyle Moderate Portfolio (Class I) | · ING Van Kampen Comstock Portfolio | |
· ING Limited Maturity Bond Portfolio | (I Class) | |
(Class S) | · ING Van Kampen Equity and Income | |
· ING Liquid Assets Portfolio (Class S) | Portfolio (I Class) | |
· ING MarketStyle Growth Portfolio (Class I) | · ING VP Balanced Portfolio (Class I) | |
· ING MarketStyle Moderate Growth Portfolio | · ING VP Intermediate Bond Portfolio | |
(Class I) | (Class I) | |
· ING MarketStyle Moderate Portfolio | · ING VP Index Plus LargeCap Portfolio | |
(Class I) | (Class I) | |
· ING Marsico Growth Portfolio (Class I) | · ING VP Index Plus MidCap Portfolio | |
· ING Marsico International Opportunities | (Class I) | |
Portfolio (Class I) | · ING VP Index Plus SmallCap Portfolio | |
· ING MFS Total Return Portfolio (Class I) | (Class I) | |
· ING MFS Utilities Portfolio (Class S) | · ING VP High Yield Bond Portfolio (Class I) | |
· ING Oppenheimer Main Street Portfolio® | · ING VP Real Estate Portfolio (Class S) | |
(Class I) | · ING VP SmallCap Opportunities Portfolio | |
· ING Pioneer Fund Portfolio (Class I) | (Class I) | |
· ING Pioneer Mid Cap Value Portfolio | · Neuberger Berman AMT Socially | |
(Class I) | Responsive Portfolio® (Class I) |
Asset Accumulator
16
See Appendix B to this prospectus for more information about the funds available through the variable account, including information about each funds investment adviser/subadviser and investment objective. Please read and retain the fund prospectuses for more information about each funds fees and expenses, investment objective and policies and the risks associated with investing in the fund.
A fund available through the variable account is not the same as a retail mutual fund with the same or similar name. Accordingly, the management, fees and expenses and performance of a fund available through the variable account is likely to differ from a similarly named retail mutual fund.
Voting Privileges. We invest each subaccounts assets in shares of a corresponding fund. We are the legal owner of the fund shares held in the variable account, and we have the right to vote on certain issues. Among other things, we may vote on issues described in the funds current prospectus or issues requiring a vote by shareholders under the 1940 Act.
Even though we own the shares, we give you the opportunity to tell us how to vote the number of shares attributable to your policy. We count fractional shares. If you have a voting interest, we send you proxy material and a form on which to give us your voting instructions.
Each fund share has the right to one vote. The votes of all fund shares are cast together on a collective basis, except on issues for which the interests of the funds differ. In these cases, voting is on a fund-by-fund basis.
Examples of issues that require a fund-by-fund vote are changes in the fundamental investment policy of a particular fund or approval of an investment advisory agreement.
We vote the shares in accordance with your instructions at meetings of the funds shareholders. We vote any fund shares that are not attributable to policies and any fund shares for which the owner does not give us instructions in the same proportion as we vote the shares for which we did receive voting instructions.
We reserve the right to vote fund shares without getting instructions from policy owners if the federal securities laws, regulations or their interpretations change to allow this.
You may instruct us only on matters relating to the funds corresponding to those subaccounts in which you have invested assets as of the record date set by the funds Board for the shareholders meeting. We determine the number of fund shares in each subaccount of your policy by dividing your variable account value in that subaccount by the net asset value of one share of the matching fund.
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17
Right to Change the Variable Account. Subject to state and federal law and the rules and regulations thereunder, we may, from time to time, make any of the following changes to our variable account with respect to some or all classes of policies:
Change the investment objective; | ||
Offer additional subaccounts that will invest in funds we find appropriate for policies we issue; | ||
Eliminate subaccounts; | ||
Combine two or more subaccounts; | ||
Close subaccounts. If we close a subaccount, unless you provide us with alternative allocation instructions, all future premiums directed to the subaccount that was closed may be automatically allocated among the other subaccounts in which your policy value is allocated, on a proportionate basis. You may give us alternative allocation instructions at any time by contacting our Customer Service Center. See also the Transfers section of this prospectus, page 48, for information about making subaccount allocation changes; | ||
Substitute a new fund for a fund in which a subaccount currently invests. A substitution may become necessary if, in our judgment: | ||
A fund no longer suits the purposes of your policy; | ||
There is a change in laws or regulations; | ||
There is a change in the funds investment objectives or restrictions; | ||
The fund is no longer available for investment; or | ||
Another reason we deem a substitution is appropriate. | ||
In the case of a substitution, the new fund may have different fees and charges than the fund it replaced; | ||
Transfer assets related to your policy class to another separate account; | ||
Withdraw the variable account from registration under the 1940 Act; | ||
Operate the variable account as a management investment company under the 1940 Act; | ||
Cause one or more subaccounts to invest in a fund other than, or in addition to, the funds currently available; | ||
Stop selling the policy; | ||
End any employer or plan trustee agreement with us under the agreements terms; | ||
Limit or eliminate any voting rights for the variable account; or | ||
Make any changes required by the 1940 Act or its rules or regulations. |
We will not make a change until it is effective with the SEC and approved by the appropriate state insurance departments, if necessary. We will notify you of changes. If you wish to transfer the amount you have in the affected subaccount to another subaccount or to the fixed account, you may do so free of charge. Just notify us at our Customer Service Center.
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The Fixed Account |
You may allocate all or a part of your net premium and transfer your net policy value into | ||
the fixed account. We declare the interest rate that applies to all amounts in the fixed | ||
account. Although the interest rate will change over time, the interest rate will never be | In the policy the | |
less than 3.00%. Additionally, we guarantee that the interest rate will not change more | fixed account is | |
frequently than every policy anniversary. Interest compounds daily at an effective annual | referred to as the | |
rate that equals the declared rate. We credit interest to the fixed account on a daily basis. | Guaranteed | |
We pay interest regardless of the actual investment performance of our general account. | Interest Division. | |
We bear all of the investment risk for the fixed account. |
Your fixed account value equals the net premium you allocate to the fixed account, plus interest earned, minus amounts you transfer out or withdraw. It may be reduced by fees and charges assessed against your policy value.
The fixed account guarantees principal and is part of our general account. The general account supports our non-variable insurance and annuity obligations. We have not registered interests in the fixed account under the Securities Act of 1933, as amended (1933 Act). Also, we have not registered the fixed account or the general account as an investment company under the 1940 Act (because of exemptive and exclusionary provisions). This means that the general account, the fixed account and interests in it are generally not subject to regulation under these Acts.
The SEC staff has not reviewed the disclosures in this prospectus relating to the general account and the fixed account. These disclosures, however, may be subject to certain requirements of the federal securities law regarding accuracy and completeness of statements made.
DETAILED INFORMATION ABOUT THE POLICY
This prospectus describes our standard Asset Accumulator variable universal life insurance policy. The policy provides death benefits, policy values and other features of traditional life insurance contracts. There may be variations in policy features, benefits and charges because of requirements of the state where we issue your policy. We describe all such differences in your policy.
If you would like to know about state variations, please ask your agent/registered representative. We can provide him/her with the list of variations that will apply to your policy.
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We and our affiliates offer various other products with different features and terms than the policy offered through this prospectus, and that may offer some or all of the same funds. These products have different benefits, fees and charges, and may or may not better match your needs. Please note that some of the companys management personnel and certain other employees may receive a portion of their employment compensation based on the amount of policy values allocated to funds affiliated with ING. You should be aware that there may be alternative products available, and, if you are interested in learning more about these other products, contact our Customer Service Center or your agent/registered representative.
Purchasing a Policy |
To purchase a policy you must submit an application to us. On that application you will, among other things, select:
Additionally, on the application you will provide us with certain health and other necessary information. Upon receipt of an application, we will follow our underwriting procedures to determine whether the proposed insured person is insurable by us. Before we can make this determination, we may need to request and review medical examinations of and other information about the proposed insured person. Through our underwriting process we also determine the risk class for the insured person if the application is accepted. Risk class is based on such factors as age, gender, health and occupation of the insured person. Risk class will impact the cost of insurance rates you will pay and may also affect premiums and other policy fees, charges and benefits.
We reserve the right to reject an application for any reason permitted by law. If an application is rejected, any premium received will be returned without interest.
On the date coverage under the policy begins (the policy date), the person on whose life we issue the policy (the insured person) generally can be no more than age 85 (70 for guaranteed issue policies). Age under the policy means the insured persons age on the birthday nearest to the policy date. From time to time, we may accept an insured person who exceeds our normal maximum age limit. We will not unfairly discriminate in determining the maximum age at issue. All exceptions to our normal limits are dependent upon our ability to obtain acceptable reinsurance coverage for our risk with an older insured. We may also set a minimum age to issue a policy.
You may request that we back-date the policy up to six months to allow the insured person to give proof of a younger age for the purposes of your policy. Except for cash on delivery policies, we generally will not reissue a policy to change the policy date.
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Important Information About the Adjustable Term Insurance Rider. It may be to your economic advantage to include all or part of your insurance coverage under the Adjustable Term Insurance Rider. Working with your agent/registered representative, consider the factors described in the Adjustable Term Insurance Rider section of this prospectus, page 37, when deciding whether to include coverage under the Adjustable Term Insurance Rider and in what proportion to the total amount of coverage under your policy.
Premium Payments |
Premium payments are flexible and you may choose the amount and frequency of premium payments, within limits, including:
After we deduct the premium expense charge from your premium payments, we apply the net premium to your policy as described below.
A premium payment is received by us when it is received at our offices. After you have paid your initial premium, we suggest you send payments directly to us, rather than through your agent/registered representative, to assure the earliest crediting date.
Your initial premium must be at least equal to the sum of the scheduled premium from the policy date through the investment date. The investment date is the date we apply the net premium to your policy.
Scheduled Premium. You may select your scheduled (planned) premium (within our limits) when you apply for your policy. The scheduled premium, shown in your policy and schedule, is the amount you choose to pay over a stated time period. This amount may or may not be enough to keep your policy in force. You may receive premium reminder notices for the scheduled premium on a quarterly, semi-annual or annual basis. You are not required to pay the scheduled premium.
You can change the amount of your scheduled premium within our minimum and maximum limits at any time. If you fail to pay your scheduled premium or if you change the amount of your scheduled premium, your policy performance will be affected.
If you have an optional death benefit guarantee, your scheduled premium should not be less than the guarantee period annual premium shown in your policy. See Death Benefit Guarantees, page 36.
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Unscheduled Premium Payments. Generally speaking, you may make unscheduled premium payments at any time, however:
Target Premium. Target premium is not based on your scheduled premium. Target premium is actuarially determined based on the age and gender of the insured person. The target premium is used to determine your premium expense charge and the sales compensation we pay. It may or may not be enough to keep your policy in force. You are not required to pay the target premium and there is no penalty for paying more or less. The target premium for your policy and additional segments is listed in your policy schedule pages.
Premium Payments Affect Your Coverage. Unless you have an optional death benefit guarantee, your coverage lasts only as long as you have a positive net policy value that is enough to pay the periodic fees and charges due each month. If you do not meet this requirement, your policy will enter a 61-day grace period and you must make a sufficient premium payment to keep your policy from lapsing. See Lapse, page 55.
If you have an optional death benefit guarantee, we guarantee that your policy will not lapse during the guarantee period provided your cumulative premium payments minus any partial withdrawals and any outstanding loan amount and accrued loan interest are at least equal to the guarantee period annual premium and your net policy value meets certain diversification requirements. See Death Benefit Guarantees, page 36.
Allocation of Net Premium. We apply the initial net premium to your policy after all of the following conditions have been met:
Amounts you designate for the fixed account will be allocated to that account on the investment date. If your state requires return of your premium during the free look period, we initially invest amounts you have designated for the subaccounts of the variable account in the subaccount that invests in the ING Liquid Assets Portfolio. We later transfer these amounts from this subaccount to the available subaccounts that you have selected, based on your most recent premium allocation instructions, at the earlier of the following dates:
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If your state provides for return of your policy value during the free look period (or provides no free look period), we allocate amounts you designated for the subaccounts of the variable account directly into those subaccounts.
All net premium we receive after the applicable period are allocated to your policy on the valuation date of receipt. We will allocate net premiums to the available subaccounts using your most recent premium allocation instructions specified in percentages stated to the nearest tenth and totaling 100%. If your most recent premium allocation instructions includes a fund that corresponds to a subaccount that is closed to new investment, net premium received that would have been allocated to the subaccount corresponding to the closed fund may be allocated among all the other available subaccounts in which your policy value is allocated, on a proportionate basis. If there are no other such subaccounts, you must provide us with alternative allocation instructions or the premium payment will be returned to you. Your failure to provide us with alternative allocation instructions and our return of your premium payment(s) may result in y our policy entering the 61 day grace period and/or your policy lapsing without value. See Lapse, page 55.
Free Look Period |
You have the right to examine your policy and return it to us (for any reason) within the period shown in the policy. The period during which you have this right is called the free look period and starts on the date you receive your policy. If you return your policy to us within the free look period, we cancel it as of your policy date.
If you cancel your policy during the free look period, you will receive a refund as determined by state law. Generally, there are two types of free look refunds:
The type of refund that applies in your state will be specified in your policy. The type of free look refund will affect when premium received before the end of the free look period is allocated to the subaccounts. See Allocation of Net Premium, page 22.
Temporary Insurance |
If you apply and qualify, we may issue temporary insurance in an amount equal to the amount of insurance coverage for which you applied, up to $1million, which includes other in-force coverage you have with us.
Temporary insurance coverage begins when all of the following events have occurred:
Unless otherwise provided by state law, temporary insurance coverage ends on the earliest of:
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There is no death benefit under the temporary insurance coverage if any of the following events occur:
During the period of temporary insurance coverage your premium payments are held by us in a general suspense account until underwriting is completed and the policy is issued or the temporary insurance coverage otherwise ends. Premiums held in this suspense account do not earn interest and they are not allocated to the investment options available under the policy until a policy is issued. If a policy is not issued and temporary coverage ends, any premium received will be returned without interest. See Allocation of Net Premium, page 22.
Fees and Charges |
We deduct fees and charges under the policy to compensate us for:
The amount of a fee or charge may be more or less than the cost associated with the service or benefit. Accordingly, excess proceeds from one fee or charge may be used to make up a shortfall on another fee or charge, and we may earn a profit on one or more of these fees and charges. We may use any such profits for any proper corporate purpose, including, among other things, payment of sales expenses.
Transaction Fees and Charges |
We deduct the following transaction fees and charges from your policy value each time you make certain transactions.
Premium Expense Charge. We deduct a premium expense charge from each premium payment we receive.
Premium Expense Charge for | Premium Expense Charge for | |||
Segment | Amounts up to Target | Amounts in Excess of | ||
Year | Premium | Target Premium | ||
|
|
| ||
1 | 9.50% | 8.50% | ||
2+ | 8.50% | 5.50% |
For policies issued in Pennsylvania, the guaranteed maximum premium expense charge is 9.50% of all premium in all years.
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This charge helps offset: |
Partial Withdrawal Fee. We deduct a partial withdrawal fee each time you take a partial withdrawal from your policy. The amount of this fee is $10. We deduct the partial withdrawal fee proportionately from your remaining fixed and variable account values.
This fee helps offset the expenses we incur when processing a partial withdrawal.
Surrender Charge. We deduct a surrender charge during the first nine segment years when you:
The amount of the surrender charge depends on the amount of base insurance coverage surrendered or decreased and the surrender charge rates.
When you purchase a policy or increase your base insurance coverage, we set surrender charge rates based on the gender and age of the insured person. Surrender charges apply for the first nine years of each segment of base insurance coverage. The surrender charge rates increase after the first segment year, remain level during segment years two through five and then decrease uniformly each year to zero at the beginning of the tenth segment year. Each coverage segment will have its own set of surrender charge rates which will apply only to that segment. See Changes in the Amount of Your Insurance Coverage, page 30. The rates that apply to you will be set forth in your policy. See the Tr ansaction Fees and Charges table on page 8 for the minimum and maximum surrender charge rates and the rates for a representative insured person.
For full surrenders, you will receive the surrender value of your policy. For decreases in the amount of base insurance coverage, the surrender charge will reduce your policy value. If there are multiple segments of base insurance coverage, the coverage decreases and surrender charges assessed will be processed on a pro rata basis.
In the early policy years the surrender charge may exceed the policy value because the surrender charge may be more than the cumulative premiums minus policy fees and charges. Therefore, you should purchase a policy only if you intend and have the financial capability to keep the policy in force for a substantial period of time.
The surrender charge helps offset the expenses we incur in issuing and distributing the policy.
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Excess Illustration Fee. We currently do not assess this fee, but we reserve the right to assess a fee of up to $25 for each illustration of your policy values you request after the first each policy year.
This fee helps offset the costs we incur when processing requests for excess illustrations.
Redemption Fees. If applicable, we may deduct the amount of any redemption fees imposed by the underlying mutual funds as a result of withdrawals, transfers or other fund transactions you initiate. Redemption fees, if any, are separate and distinct from any transaction charges or other charges deducted from your policy value.
Periodic Fees and Charges |
We deduct the following periodic fees and charges from your policy value on the monthly processing date. The monthly processing date is the same date each month as your policy date. If that date is not a valuation date, then the monthly processing date is the next valuation date.
At any time you may choose one investment option from which we will deduct your periodic fees and charges. If you do not choose the investment option or the amount in your chosen investment option is not enough to cover the periodic fees and charges, then your periodic fees and charges are taken from the subaccounts and fixed account in the same proportion that your value in each has to your net policy value.
Mortality and Expense Risk Charge. Each month we deduct from your policy value a mortality and expense risk charge based on the amount invested in the subaccounts according to the following rates:
Percentage of the Amount Invested | ||
Policy Years | in the Variable Account | |
|
| |
1 - 5 | 0.0375% (0.45% on an annual basis) | |
6 - 10 | 0.025% (0.30% on an annual basis) | |
11+ | 0.00% |
This charge helps compensate us for the mortality and expense risks we assume when we issue a policy. The mortality risk is the risk that insured people, as a group, may live less time than we estimated. The expense risk is the risk that the costs of issuing and administering the policies and operating the subaccounts of the variable account are greater than we estimated.
Policy Charge. Each month we deduct a policy charge. For policies issued on a guaranteed issue basis this charge is $20 per month during the first ten policy years and $7.50 per month thereafter. For fully underwritten policies this charge is $15 per month during the first ten policy years and $7.50 per month thereafter.
This charge helps compensate us for the costs associated with:
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Administrative Charge. Each month we deduct an administrative charge equal to our current monthly administrative charge rates multiplied by the amount of your base insurance coverage (or total insurance coverage, if greater) divided by 1,000. The rates apply to the first $10 million of coverage and vary based on the insured persons age at issue. The rates decrease after the tenth policy year. The rates that apply to you will be set forth in your policy. See the Periodic Fees and Charges table on page 9 for the minimum and maximum administrative charge rates and the rates for a representative insured person.
This charge helps offset the costs we incur in administering the policy, including costs associated with:
Cost of Insurance. Each month we deduct a cost of insurance charge equal to our current monthly cost of insurance rates multiplied by the net amount at risk for each segment of your base insurance coverage. The net amount at risk as calculated on each monthly processing date equals the difference between:
Monthly cost of insurance rates are based on the insured persons age at issue, gender, risk class and amount of insurance coverage on the policy date and each date you increase your insurance coverage (a segment date) and the segment year. They will not, however, be greater than the guaranteed cost of insurance rates shown in the policy, which are based on the 1980 Commissioners Standard Ordinary Sex Distinct Mortality Tables. We will apply unisex rates where appropriate under the law. This currently includes policies issued in the state of Montana and policies issued to employers or employee organizations in connection with employment related insurance or benefit programs. For fully underwritten policies, we make lower current cost of insurance rates available for total death benefit amounts of $250,000 or more. The rates that apply to you will be set forth in your policy. See the Periodic Fees and Charges table on page 9 for the minimum and maximum cost of insurance rates and the rates for a representative insured person.
Separate cost of insurance rates apply to each segment of your insurance coverage and your riders. The maximum rates for the initial segment and each new segment of your insurance coverage will be printed in your policy schedule pages.
The cost of insurance charge varies from month to month because of changes in your net amount at risk, changes in your death benefit and the increasing age of the insured person. The net amount at risk is affected by the same factors that affect your policy value, namely:
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We calculate the net amount at risk separately for each segment of your insurance coverage. We allocate the net amount at risk to segments of the base death benefit in the same proportion that each segment has to the total base death benefit for all insurance coverage as of the monthly processing date.
There are no cost of insurance charges during the continuation of coverage period.
The cost of insurance charge compensates us for the ongoing costs of providing insurance coverage, including the expected cost of paying death benefit proceeds that may be more than your policy value.
Optional Rider Fees and Charges |
There may be separate fees and charges for optional rider benefits. See the Optional Rider Fees and Charges table on page 10, and the Optional Rider Benefits section on page 37 for more information about the optional rider benefits and the applicable fees and charges.
Waiver and Reduction of Fees and Charges
We may waive or reduce any of the fees and charges under the policy, as well as the minimum amount of insurance coverage set forth in this prospectus. Any waiver or reduction will be based on expected economies that result in lower sales, administrative or mortality expenses. For example, we may expect lower expenses in connection with sales to:
Any variation in fees and charges will be based on differences in costs or services and our rules in effect at the time. We may change our rules from time to time, but we will not unfairly discriminate in any waiver or reduction.
Fund Fees and Expenses |
Each fund deducts management fees from the amounts allocated to the funds. In addition, each fund deducts other expenses which may include service fees that are used to compensate service providers, including the company and its affiliates, for administrative and policy owner services provided on behalf of the fund. Certain funds deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of fund shares. Furthermore, certain funds may adopt redemption fees to cover the costs associated with withdrawals, transfers or other fund transactions you initiate. If applicable, we may deduct the amount of any redemption fees imposed by an underlying fund. Fund redemption fees, if any, are separate and distinct from any transaction or periodic fees and charges deducted from your policy value. For a more complete description of the funds fees and expenses, review each funds prospectus.
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The company, or its U.S. affiliates, receives from each of the funds or the funds affiliates varying levels and types of revenue with respect to each of the funds available through the policy. In terms of the total dollar amounts received, the greatest amount of revenue comes from assets allocated to funds managed by ING Investments, LLC or other company affiliates, which funds are either not subadvised or are subadvised by another company affiliate. Assets allocated to funds managed by a company affiliate, Directed Services, LLC, for example, but which are subadvised by unaffiliated third parties generate the next greatest amount of revenue. Finally, assets allocated to unaffiliated funds generate the least amount of revenue.
Types of Revenue Received from Affiliated Funds. Affiliated funds are (a) funds managed by ING Investments, LLC or other company affiliates, which funds are either not subadvised or are subadvised by another company affiliate; and (b) funds managed by a company affiliate but which are subadvised by unaffiliated third parties.
Revenues received by the company from affiliated funds and/or their affiliates may include:
Types of Revenue Received from Unaffiliated Funds. Revenue received from each of the unaffiliated funds or their affiliates is based on an annual percentage of the average net assets held in that fund by the company. Some unaffiliated funds or their affiliates pay us more than others and some of the amounts we receive may be significant.
Revenues received by the company from unaffiliated funds and/or their affiliates may include:
The three unaffiliated fund families that currently have funds offered through the policy, ranked according to total dollar amounts they paid to the company or its affiliates in 2006 are as follows: [To be updated by amendment.]
If the revenues received from affiliated funds were included in this list, payments to the company or its affiliates by ING Investments, LLC and other company affiliates would be at the top of the list.
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In addition to the types of revenue received from affiliated and unaffiliated funds described above, affiliated and unaffiliated funds and their investment advisers, subadvisers or affiliates may participate at their own expense in company sales conferences or educational and training meetings. In relation to such participation, a funds investment adviser, subadviser or affiliate may help offset the cost of the meetings or sponsor events associated with the meetings. In exchange for these expense offset or sponsorship arrangements, the investment adviser, subadviser or affiliate may receive certain benefits and access opportunities to company sales representatives and wholesalers rather than monetary benefits. These benefits and opportunities include, but are not limited to:
Management personnel of the company and of its affiliated broker-dealers may receive additional compensation if the overall amount of investments in funds advised by company affiliates meets certain target levels or increases over time. Compensation for certain management personnel, including sales management personnel, may be enhanced if the overall amount of investments in the policies and other products issued by the company or its affiliates increases over time. Certain sales management personnel may also receive compensation that is a specific percentage of the commissions paid to distributors or of purchase payments received under the policies.
Death Benefits
In the policy the | You decide the amount of life insurance protection you need, now and in the future. | |
amount of | Generally, we require a minimum of $100,000 ($50,000 for guaranteed issue policies) of | |
insurance coverage | total insurance coverage to issue your policy. We may lower this minimum for certain | |
you select is | group, sponsored or corporate purchasers. The amount of insurance coverage in effect on | |
referred to as the | your policy date is your initial coverage segment. | |
Face Amount. |
It may be to your economic advantage to include part of your insurance coverage under the Adjustable Term Insurance Rider. See Important Information About the Adjustable Term Insurance Rider, page 21.
Changes in the Amount of Your Insurance Coverage
Subject to certain limitations, generally you may change the amount of your insurance coverage after the first policy year (first monthly processing date for an increase). The change will be effective on the next monthly processing date after we approve your written request.
There may be underwriting or other requirements that must be met before we will approve a change. After we approve your request to change the amount of insurance coverage under the policy, we will send a new policy schedule page to you. You should attach it to your policy. We may ask you to return your policy to our Customer Service Center so that we can make this change for you.
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Changes in the amount of your insurance coverage must be for at least $1,000.
A coverage segment or segment is a block of insurance coverage. A requested increase in base insurance coverage will cause a new coverage segment to be created. Once we create a new segment, it is permanent unless law requires differently.
Each new segment will have: |
If a death benefit option change causes the amount of base insurance coverage to increase, no new segment is created. Instead, the size of each existing segment(s) is (are) changed. If it causes the amount of base insurance coverage to decrease, each segment is decreased.
In determining the net amount at risk for each coverage segment we allocate the net amount at risk among the base coverage segments in the same proportion that each segment bears to the total amount of base insurance coverage.
You may not decrease the amount of your insurance coverage below the minimum we require to issue you a policy. Decreases in insurance coverage may result in:
Requested reductions in the amount of insurance coverage will first decrease your total insurance coverage amount. We decrease your base insurance coverage amount only after your Adjustable Term Insurance Rider coverage is reduced to zero. If you have more than one segment, we divide decreases in base coverage among your coverage segments pro rata unless law requires differently.
We reserve the right not to approve a requested change in your insurance coverage that would disqualify your policy as life insurance under Section 7702 of the Internal Revenue Code. In addition, we may refuse to approve a requested change in your insurance coverage that would cause your policy to become a modified endowment contract under Section 7702A of the Internal Revenue Code without your prior written acknowledgment accepting your policy as a modified endowment contract. Decreasing the amount of insurance coverage under your policy could cause your policy to be considered a modified endowment contract. If this happens, prior and subsequent distributions from the policy (including loans) may be subject to adverse tax treatment. You should consult a qualified tax adviser before changing your amount of insurance coverage. See Modified Endowment C ontracts, page 58
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Continuation of Coverage |
The continuation of coverage feature automatically continues your insurance coverage in force beyond the policy anniversary nearest the insured persons 100th birthday (the continuation of coverage period), unless prohibited by state law. If you do not surrender your policy before this date, on this date:
Your insurance coverage continues in force until the death of the insured person, unless the policy lapses or is surrendered. However:
Partial withdrawals and loans are allowed during the continuation of coverage period. If you have an outstanding loan, interest continues to accrue. If you fail to make sufficient loan or loan interest payments, it is possible that the outstanding loan amount plus accrued loan interest may become greater than your policy value and cause your policy to lapse. To avoid lapse, you may repay the loan and loan interest during the continuation of coverage period.
If you wish to stop coverage during the continuation of coverage period, you may surrender your policy and receive the net policy value. There is no surrender charge during this period. All other normal consequences of surrender apply. See Surrender, page 54.
The continuation of coverage feature is not available in all states. If a state has approved this feature, it is automatic under your policy. In certain states the death benefit during the continuation of coverage period is the net policy value. Contact your agent/registered representative or our Customer Service Center to find out if this feature is available in your state and which type of death benefit applies in your state.
The tax consequences of coverage continuing beyond the insured persons 100th birthday are uncertain. You should consult a qualified tax adviser as to those consequences. See Continuation of a Policy, page 60.
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Death Benefit Qualification Tests |
The death benefit proceeds are generally not subject to federal income tax if your policy continues to meet the federal income tax definition of life insurance. Your policy will meet this definition of life insurance provided that it meets the requirements of either the guideline premium test or the cash value accumulation test.
When you apply for a policy you must choose either the guideline premium test or the cash value accumulation test to make sure your policy complies with the Internal Revenue Codes definition of life insurance. You cannot change this choice once the policy is issued.
Guideline Premium Test. The guideline premium test requires that premium payments do not exceed certain statutory limits and your death benefit is at least equal to your policy value multiplied by a factor defined by law. The guideline premium test provides for a maximum amount of premium in relation to the death benefit and a minimum amount of death benefit in relation to policy value. The factors for the guideline premium test can be found in Appendix A to this prospectus.
Certain changes to a policy that uses the guideline premium test may allow the payment of premium in excess of the statutory limits in order to keep the policy from lapsing. In this circumstance, any such excess premium will be allocated to the fixed account in order for the policy to continue to meet the federal income tax definition of life insurance.
Cash Value Accumulation Test. The cash value accumulation test requires a policys surrender value not to exceed the net single premium necessary to fund the policys future benefits. Under the cash value accumulation test, there is generally no limit to the amount that may be paid in premiums as long as there is enough death benefit in relation to policy value at all times. The death benefit at all times must be at least equal to an actuarially determined factor, depending on the insured persons age and gender at any point in time, multiplied by the policy value. A description of how the cash value accumulation test factors are determined can be found in Appendix A to this prospectus.
Which Death Benefit Qualification Test to Choose. The guideline premium test limits the amount of premium that may be paid into a policy. If you do not want to pay premiums in excess of the guideline premium test limitations, you should consider the guideline premium test.
The cash value accumulation test does not limit the amount of premium that may be paid into a policy. If you desire to pay premiums in excess of the guideline premium test limitations you should elect the cash value accumulation test. However, any premium that would increase the net amount at risk is subject to evidence of insurability satisfactory to us. Required increases in the death benefit due to growth in policy value will generally be greater under the cash value accumulation test than under the guideline premium test. Required increases in the death benefit will increase the cost of insurance under the policy, thereby reducing the policy value.
In the policy the guideline premium test is referred to as the Guideline Premium/Cash Value Corridor Test.
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Death Benefit Options |
There are three death benefit options available under the policy. You choose the option you want when you apply for the policy. You may change that choice after your first monthly processing date and before age 100.
Option 1. Under death benefit Option 1, the base death benefit is the greater of:
Under this option your base death benefit will remain level unless your policy value multiplied by the appropriate factor described in Appendix A exceeds the amount of base insurance coverage. In this case, your death benefit will vary as the policy value varies.
With Option 1, positive investment performance generally reduces your net amount at risk, which lowers your policys cost of insurance charge. Option 1 also offers insurance coverage at a set amount with potentially lower cost of insurance charges over time.
Option 2. Under death benefit Option 2, the base death benefit is the greater of:
Under this option your base death benefit will vary as the policy value varies and investment performance is reflected in your insurance coverage.
Option 2 is not available after age 100. If Option 2 is in effect at age 100, it automatically converts to death benefit Option 1. See Continuation of Coverage, page 32.
Option 3. Under death benefit Option 3, the base death benefit is the greater of:
Under this option your base death benefit will vary as you pay premiums and take withdrawals or if your policy value multiplied by the appropriate factor described in Appendix A exceeds the amount of base insurance coverage plus premiums paid minus withdrawals taken.
Option 3 is not available after age 100. If Option 3 is in effect at age 100, it automatically converts to death benefit Option 1. See Continuation of Coverage, page 32.
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Which Death Benefit Option to Choose. If you are satisfied with the amount of your base insurance coverage and prefer to have premium payments and favorable investment performance reflected to the maximum extent in the policy value and lower cost of insurance charges, you should choose death benefit Option 1. If you prefer to have premium payments and favorable investment performance reflected partly in the form of an increasing death benefit, you should choose death benefit Option 2. If you require a specific death benefit that would include a return of the premium paid, death benefit Option 3 may best meet your needs.
Changing Death Benefit Options. On or after the first monthly processing date and before age 100 you may change death benefit options as described below. We may require evidence of insurability under our normal rules of underwriting for some death benefit option changes.
Changing your death benefit option may reduce or increase your base and total insurance coverage amounts but it will not change the amount of your base and total death benefits. We may not approve a death benefit option change if it reduces the amount of insurance coverage below the minimum we require to issue your policy. The following death benefit option changes are allowed, and on the effective date of the change the amount of your base insurance coverage will change as follows:
Change From: | Change To: | Base Insurance Coverage Following the Change: | ||
| ||||
Option 1 | Option 2 | · Your base insurance coverage before the change | ||
minus your policy value as of the effective date of | ||||
the change. | ||||
| ||||
Option 2 | Option 1 | · Your base insurance coverage before the change | ||
plus your policy value as of the effective date of | ||||
the change. | ||||
| ||||
Option 3 | Option 1 | · Your base insurance coverage before the change | ||
plus the sum of all premium payments we have | ||||
received minus all partial withdrawals you have | ||||
taken as of the effective date of the change. | ||||
|
Your death benefit option change is effective on your next monthly processing date after we approve it.
After we approve your request, we send a new policy schedule page to you. You should attach it to your policy. We may ask you to return your policy to our Customer Service Center so that we can make this change for you.
If a death benefit option change causes the amount of insurance coverage to change, no new coverage segment(s) is (are) created. Instead, the size of each existing segment(s) is (are) changed. If you change death benefit options, there is no change to the amount of term insurance if you have the Adjustable Term Insurance Rider. See Adjustable Term Insurance Rider, page 37.
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We do not impose a surrender charge if a death benefit option change results in a decrease in the amount of your base insurance coverage. Additionally, we do not adjust the target premium when you change your death benefit option. See Surrender Charge, page 25.
If your death benefit option is changed to Option 1 because you exercised the Overloan Lapse Protection Rider, notwithstanding any other information in this section your insurance coverage following the change will equal your policy value immediately before the change minus the Overloan Lapse Protection Rider charge with the difference multiplied by the appropriate guideline premium test factor described in Appendix A.
Changing your death benefit option may have tax consequences. You should consult a qualified tax adviser before making changes.
Death Benefit Proceeds |
After the insured persons death, if your policy is in force we pay the death benefit proceeds to the beneficiaries. The beneficiaries are the people you name to receive the death benefit proceeds from your policy. The death benefit proceeds are equal to:
The death benefit is calculated as of the date of the insured persons death and will vary depending on the death benefit option you have chosen.
Death Benefit Guarantees |
The following optional Death Benefit Guarantee Riders may be available and provide that the policy will not lapse even if the net policy value is not enough to pay the periodic fees and charges each month:
If available, these optional rider benefits may be selected only when you apply for the policy. There may be a separate monthly charge for these rider guarantees. See 20-Year/Age 65 Benefit Guarantee Rider, page 40 and Lifetime Death Benefit Guarantee Rider, page 41.
Additional Insurance Benefits |
Your policy may include additional insurance benefits, attached by rider. There are two types of riders:
The following information does not include all of the terms and conditions of each rider, and you should refer to the rider to fully understand its benefits and limitations. We may offer riders not listed here. Not all riders may be available under your policy. Contact your agent/registered representative for a list of riders and their availability.
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Optional Rider Benefits
The following riders may have an additional cost, but you may cancel optional riders at any time. Adding or canceling riders may have tax consequences. See Modified Endowment Contracts, page 58.
In the policy base | ||
Adjustable Term Insurance Rider. You may increase the amount of your total | insurance | |
insurance coverage under the policy by adding coverage under the Adjustable Term | coverage or base | |
Insurance Rider. This rider allows you to schedule the pattern of insurance coverage | coverage is | |
appropriate for your anticipated needs. As the name suggests, the Adjustable Term | referred to as the | |
Insurance Rider adjusts over time to maintain your desired level of total coverage. | Stated Death | |
Benefit; the total | ||
You specify your amount of total insurance coverage when you apply for this rider. The | insurance | |
amount of total insurance coverage can be level for the life of your policy or can be | coverage or total | |
scheduled to change at the beginning of a selected policy year(s). | coverage is | |
referred to as the | ||
Generally, the minimum amount of total insurance coverage under a policy is $100,000 | Target Death | |
($50,000 for guaranteed issue policies). | Benefit. |
The Adjustable Term Insurance Rider benefit is the difference between the amount of your total death benefit and your base death benefit, but not less than zero. The riders benefit automatically adjusts daily as the amount of your base death benefit changes. Your death benefit proceeds depend on which death benefit option is in effect.
Under death benefit Option 2, the total death benefit is the greater of:
Under death benefit Option 3, the total death benefit is the greater of:
For example, under death benefit Option 1, assume your base death benefit changes as a result of a change in your policy value. The Adjustable Term Insurance Rider adjusts to provide death benefit proceeds equal to your total insurance coverage in each year:
Amount of | Adjustable Term | |||
Base Death Benefit | Total Insurance Coverage | Insurance Benefit | ||
$201,500 | $250,000 | $48,500 | ||
$202,500 | $250,000 | $47,500 | ||
$202,250 | $250,000 | $47,750 |
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It is possible that the amount of your adjustable term insurance may be zero if your base death benefit increases enough. Using the same example, if the base death benefit under your policy grew to $250,000 or more, the adjustable term insurance benefit would be zero.
Even when the adjustable term insurance benefit is reduced to zero, your rider remains in effect until you remove it from your policy. Therefore, if later the base death benefit drops below the amount of your total insurance coverage, the Adjustable Term Insurance Rider coverage reappears to maintain the amount of your total insurance coverage.
You may change the amount of your total insurance coverage, according to our rules. See Changes in the Amount of Your Insurance Coverage, page 30.
We may deny future, scheduled increases to the amount of your total insurance coverage if you cancel a scheduled change or if you ask for an unscheduled decrease in your total insurance coverage.
Partial withdrawals, changes from death benefit Option 1 to Option 2, and decreases in the amount of your base insurance coverage may reduce the amount of your total insurance coverage. See Partial Withdrawals, page 52; and Changes in the Amount of Your Insurance Coverage, page 30.
There is no defined premium for a given amount of adjustable term insurance benefit. Instead, we deduct a separate monthly cost of insurance charge from your policy value. The cost of insurance for this rider is calculated as the monthly cost of insurance rate for the rider benefit multiplied by the amount of adjustable term insurance benefit in effect at the monthly processing date. The cost of insurance rates are determined by us from time to time. They are based on the issue age, gender and risk class of the insured person, as well as the length of time since your policy date. See the Optional Rider Fees and Charges table on page 10 for the minimum rates, maximum rates and the rates for a representative insured person.
The only charge for this rider is the cost of insurance charge. The total charges that you pay may be more or less if you have some coverage under an Adjustable Term Insurance Rider rather than just base insurance coverage. There are no premium expense charges or surrender charges for this coverage.
If the total insurance coverage is increased by you after the Adjustable Term Insurance Rider is issued, we use the same cost of insurance rate schedule for the entire coverage for this rider. These rates are based on the original risk class even though satisfactory new evidence of insurability is required for the increased schedule. Although the maximum cost of insurance rates for this rider are greater than the maximum cost of insurance rates for the base insurance coverage, the current rates for this rider are generally lower than current cost of insurance rates for the base insurance coverage. See Cost of Insurance, page 27.
Not all policy features may apply to the Adjustable Term Insurance Rider.
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This rider will terminate on the earliest of the following dates:
If this rider terminates, it cannot be reinstated.
Important Information About the Adjustable Term Insurance Rider. It may be to your economic advantage to include all or part of your insurance coverage under the Adjustable Term Insurance Rider. Working with your agent/registered representative, consider the following when deciding whether to include coverage under the Adjustable Term Insurance Rider and in what proportion to the total amount of coverage under your policy.
Cost of Insurance and Other Fees and Charges. The cost of insurance rates and other fees and charges affect the value of your policy. The lower the cost of insurance and other fees and charges, the greater the policy value. Accordingly, please be aware that: | ||
The current cost of insurance rates for coverage under the Adjustable Term Insurance Rider are generally less than the current cost of insurance rates for coverage under the base policy; | ||
The guaranteed maximum cost of insurance rates for coverage under the Adjustable Term Insurance Rider are generally more than the guaranteed maximum cost of insurance rates for coverage under the base policy; and | ||
Some policy fees and charges that apply to coverage under the base policy may not apply to coverage under the Adjustable Term Insurance Rider. | ||
Features and Benefits. Certain features and benefits are limited or unavailable if you have Adjustable Term Insurance Rider coverage, including Death Benefit Guarantees. | ||
Compensation. We generally pay more compensation to your agent/registered representative on premiums paid for coverage under the base policy than we do on premiums paid for coverage under the Adjustable Term Insurance Rider. See | ||
Distribution of the Policies, page 69. | ||
With these factors in mind, you should discuss with your agent/registered representative how the use of the Adjustable Term Insurance Rider will affect the costs, benefits, features and performance of your policy. You should also review illustrations based on different combinations of base policy and Adjustable Term Insurance Rider coverage so that you can decide what combination best meets your needs. The foregoing discussion does not contain all of the terms and conditions or limitations of coverage under the policy or the Adjustable Term Insurance Rider, and you should read them carefully to fully understand their benefits and limitations.
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20-Year/Age 65 Death Benefit Guarantee Rider. The 20-Year/Age 65 Death Benefit Guarantee Rider provides a guarantee that your policy and any Adjustable Term Insurance Rider coverage will not lapse for the greater of 20 years or to age 65 provided:
Your cumulative premium payments, minus any partial withdrawals or loans, are at least equal to the sum of the 20 year death benefit guarantee premium payments to the next monthly processing date; and | ||
Your net policy value meets one of the following diversification requirements: | ||
Your net policy value is allocated to at least five investment options with no more than 35% invested in any one investment option; or | ||
At least 65% of your net policy value is allocated to one or more of the ING Lifestyle, ING MarketPro (if available) or ING MarketStyle portfolios. | ||
Each month during the guarantee period we deduct a charge for this rider based on a rate that varies depending on the issue age of the insured person. See Optional Rider Fees and Charges table, page 10. The amount of this charge will be determined by dividing the amount of guaranteed coverage by 1,000 and multiplying the result by the rate set forth in your policy. The amount of guaranteed coverage equals the amount of your total insurance coverage minus your policy value.
You should consider the following when deciding whether to add the 20-Year/Age 65 Death Benefit Guarantee Rider to your policy:
We will notify you if on any monthly processing date you have not paid enough premium to keep this rider in force or your policy is not sufficiently diversified. This notice will show the amount of premium required to maintain this rider benefit and, if applicable, explain the diversification requirement. If we do not receive the required premium payment or you do not adequately diversify your policy within 61 days from the date of our notice, this rider will terminate. If this rider terminates, it cannot be reinstated.
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Lifetime Death Benefit Guarantee Rider. The Lifetime Death Benefit Guarantee Rider provides a guarantee that your policy and any Adjustable Term Insurance Rider will not lapse during your lifetime:
Your cumulative premium payments, minus any partial withdrawals or loans, are at least equal to the sum of the lifetime death benefit guarantee premium payments to the next monthly processing date; and | ||
Your net policy value meets one of the following diversification requirements: | ||
Your net policy value is allocated to at least five investment options with no more than 35% invested in any one investment option; or | ||
At least 65% of your net policy value is allocated to one or more of the ING Lifestyle, ING MarketPro (if available) or ING MarketStyle portfolios. | ||
Each month during the guarantee period we deduct a charge for this rider based on a rate that varies depending on the issue age of the insured person. See Optional Rider Fees and Charges table, page 10. The amount of this charge will be determined by dividing the amount of guaranteed coverage by 1,000 and multiplying the result by the rate set forth in your policy. The amount of guaranteed coverage equals the amount of your total insurance coverage minus your policy value.
You should consider the following when deciding whether to add the Lifetime Death Benefit Guarantee Rider to your policy:
We will notify you if on any monthly processing date you have not paid enough premium to keep this rider in force or your policy is not sufficiently diversified. This notice will show the amount of premium required to maintain this rider guarantee and, if applicable, explain the diversification requirement. If we do not receive the required premium payment or you do not adequately diversify your policy by the second monthly processing date following the notice, this rider will terminate. If this rider terminates, it cannot be reinstated.
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Waiver of Cost of Insurance Rider. If the insured person becomes totally disabled while your policy is in force, this rider provides that we waive the periodic fees and charges and rider charges during the disability period. The insured person must be no less than age 10 and no more than age 55. See the Optional Rider Fees and Charges table on page 10 for the minimum rates, maximum rates and the rates for a representative insured person. The cost of this rider is included as part of the monthly cost of insurance charge.
If you add this rider to your policy, you may not add the Waiver of Specified Premium Rider. This rider is not available if your policy is issued based on guaranteed issue underwriting.
Waiver of Specified Premium Rider. If the insured person becomes totally disabled while your policy is in force, this rider provides that after a waiting period, we credit a specified premium amount monthly to your policy during the disability period. Subject to our underwriting, you specify this amount on the application for the policy. The insured person must be no less than age 10 and no more than age 55. The minimum coverage under this rider is $25 per month. See the Optional Rider Fees and Charges table on page 10 for the minimum rates, maximum rates and the rates for a representative insured person.
A policy may contain either the Waiver of Cost of Insurance Rider or the Waiver of Specified Premium Rider, but not both.
Automatic Rider Benefits |
The following rider benefits may come with your policy automatically.
Accelerated Death Benefit Rider. Under certain circumstances, the accelerated death benefit rider allows you to accelerate payment of the death benefit that we otherwise would pay upon the insured persons death. Generally, we will provide an accelerated benefit under this rider if the insured person has a terminal illness that will result in his or her death within 12 months, as certified by a physician. The accelerated benefit will be the lesser of 75% of the amount that would be payable at the death of the insured person or $1 million. The accelerated benefit will first be used to pay off any outstanding loans and interest due. The remainder of the accelerated benefit will be paid to you in a lump sum. There is no charge for this rider.
Consider the following when deciding whether to accelerate the death benefit under this rider:
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Certain limitations and restrictions are described in the rider. Additionally, the benefit may vary by state. You should consult your agent/registered representative as to whether and to what extent the rider is available in your particular state and on any particular policy.
Overloan Lapse Protection Rider. The Overloan Lapse Protection Rider is a benefit which guarantees that your policy will not lapse even if your surrender value or net policy value, as applicable, is not enough to pay the periodic fees and charges when due. This rider may help you avoid tax consequences resulting from your policy lapsing with a loan outstanding. See Distributions Other than Death Benefits, page 42.
You may exercise this rider by written request if all of the following conditions are met:
We will notify you if you meet all of these conditions and explain the consequences of choosing to exercise this rider.
You should consider the following consequences when deciding whether to exercise the Overloan Lapse Protection Rider:
On the monthly processing date on or next following the date we receive your request to exercise this rider: | ||
We will assess a one time transaction charge. This charge equals 3.50% of your policy value (see Transaction Fees and Charges table, page 8); | ||
If another death benefit option is in effect, the death benefit option will automatically be changed to death benefit Option 1 (see Death Benefit Options, page 34); | ||
Amounts allocated to the subaccounts of the variable account will be transferred to the fixed account; | ||
All other benefit riders will be terminated; and | ||
The amount of insurance coverage after exercise of this rider will equal your policy value (less the transaction charge) multiplied by the appropriate guideline premium test factor described in Appendix A. | ||
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Insurance coverage under your policy will continue in force, subject to the following limitations and restrictions: | ||
We will continue to deduct monthly periodic fees and charges (other than the Mortality and Expense Risk charge which will no longer apply); | ||
You may not make any further premium payments; | ||
Any unpaid loan interest will be added to your loan account balance; | ||
You may not make any future transfers from the fixed account to the subaccounts of the variable account; | ||
You may not add any additional benefits by rider in the future; and | ||
You may not increase or decrease the amount of insurance coverage, change the death benefit option or make any partial withdrawals. | ||
This rider is available on or after the later of April 30, 2007, or the date the rider is approved in your state. This benefit may vary by state. You should consult your agent/registered representative as to whether and to what extent the rider is available in your particular state and on any particular policy.
Policy Value | ||
In the policy the | ||
policy value is | Your policy value equals the sum of your fixed account, variable account and loan | |
referred to as the | account values. Your policy value reflects: | |
Account Value; | · The net premium applied to your policy; | |
the fixed account | · The fees and charges that we deduct; | |
value is referred to | · Any partial withdrawals you take; | |
as the Account | · Interest earned on amounts allocated to the fixed account; | |
Value of the | · The investment performance of the funds underlying the subaccounts of the variable | |
Guaranteed Interest | account; and | |
Division; the | · Interest earned on amounts held in the loan account. | |
variable account | ||
value is referred to | Fixed Account Value | |
as the Account | ||
Value of the | Your fixed account value equals the net premium you allocate to the fixed account, plus | |
Investment Options | interest earned, minus amounts you transfer out or withdraw. It may be reduced by fees | |
of the Separate | and charges assessed against your policy value. See The Fixed Account, page 19. | |
Account; and the | ||
loan account | Variable Account Value | |
value is referred to | ||
as the Account | Your variable account value equals your policy value attributable to amounts invested in | |
Value of the Loan | the subaccounts of the variable account. | |
Division. | ||
Determining Values in the Subaccounts. The value of the amount invested in each | ||
subaccount is measured by accumulation units and accumulation unit values. The value | ||
of each subaccount is the accumulation unit value for that subaccount multiplied by the | ||
number of accumulation units you own in that subaccount. Each subaccount has a | ||
different accumulation unit value. |
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The accumulation unit value is the value determined on each valuation date. The accumulation unit value of each subaccount varies with the investment performance of its underlying fund. It reflects:
A valuation date is a date on which a fund values its shares and the New York Stock Exchange is open for business, except for days on which valuations are suspended by the SEC. Each valuation date ends at 4:00 p.m. Eastern time. We reserve the right to revise the definition of valuation date as needed in accordance with applicable federal securities laws and regulations.
You purchase accumulation units when you allocate premium or make transfers to a subaccount, including transfers from the loan account.
We redeem accumulation units: |
To calculate the number of accumulation units purchased or sold we divide the dollar amount of your transaction by the accumulation unit value for the subaccount calculated at the close of business on the valuation date of the transaction.
The date of a transaction is the date we receive your premium or transaction request at our Customer Service Center, so long as the date of receipt is a valuation date. We use the accumulation unit value that is next calculated after we receive your premium or transaction request and we use the number of accumulation units attributable to your policy on the date of receipt.
We deduct the periodic fees and charges each month from your policy value on the monthly processing date. If your monthly processing date is not a valuation date, the monthly deduction is processed on the next valuation date.
The value of amounts allocated to the subaccounts goes up or down depending on investment performance of the corresponding funds. There is no guaranteed minimum value of amounts invested in the subaccounts of the variable account.
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How We Calculate Accumulation Unit Values. We determine the accumulation unit value for each subaccount on each valuation date.
We generally set the accumulation unit value for a subaccount at $10 when the subaccount is first opened. After that, the accumulation unit value on any valuation date is:
Every valuation period begins at 4:00 p.m. Eastern time on a valuation date and ends at 4:00 p.m. Eastern time on the next valuation date. We reserve the right to revise the definition of valuation period as needed in accordance with applicable federal securities laws and regulations.
We calculate an accumulation experience factor for each subaccount every valuation date as follows:
Loan Account Value
In the policy the loan account is referred to as the Loan Division. |
When you take a loan from your policy we transfer an amount equal to your loan to the | |
loan account as collateral for your loan. The loan account is part of our general account | ||
and we credit interest to the amount held in the loan account. Your loan account value is | ||
equal to your outstanding loan amount plus accrued interest in the loan account. See | ||
Loans, page 46. |
Special Features and Benefits
Loans
You may borrow money from us at any time after the first policy month, by using your policy as collateral for the loan. Unless state law requires otherwise, a new loan amount must be at least $100 and the maximum amount you may borrow is limited to the surrender value of your policy minus the monthly periodic fees and charges to your next policy anniversary or the monthly periodic fees and charges for the next thirteen months if you take a loan within thirty days before your next policy anniversary.
Your loan request must be directed to our Customer Service Center. When you request a loan you may specify the investment options from which the loan collateral will be taken. If you do not specify the investment options, the loan collateral will be taken proportionately from each active investment option you have, including the fixed account.
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If you request an additional loan, we add the new loan amount to your existing loan. This way, there is only one loan outstanding on your policy at any time.
Loan Interest. We credit amounts held in the loan account with interest at an annual rate of 3.00% . Interest that we credit to the loan account becomes part of your loan account value until the next policy anniversary when it is transferred to the investment options according to your most recent allocation instructions.
We also charge interest on loans you take. The annual interest rate charged is 3.75% in policy years one through five and currently 3.00% in all years thereafter. Loans with this reduced interest rate are called preferred loans. Interest accrues daily but is due in arrears on each policy anniversary. If you do not pay the interest when it is due, we add it to your loan amount.
Loan Repayment. You may repay your loan at any time. We assume that payments you make, other than scheduled premium payments, are loan repayments. You must tell us if you want unscheduled payments to be premium payments.
When you make a loan repayment, we transfer an amount equal to your payment from the loan account to the subaccounts and fixed account in the same proportion as your current premium allocation, unless you tell us otherwise.
Effects of a Loan. Using your policy as collateral for a loan will affect your policy in various ways. You should carefully consider the following before taking a loan:
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Transfers |
You currently may make an unlimited number of transfers of your variable account value between the subaccounts and to the fixed account. Transfers are subject to any conditions, limits or charges (including redemption fees) that we or the funds whose shares are involved may impose, including:
Any conditions or limits we impose on transfers between the subaccounts or to the fixed account will generally apply equally to all policy owners. However, we may impose different conditions or limits on policy owners or third parties acting on behalf of policy owners, such as market timing services, who violate our excessive trading policy. See Limits on Frequent and Disruptive Transfers, page 50.
Transfers from the fixed account to the subaccounts of the variable account may be made only during the first 30 days of each policy year and are limited to the greater of:
We reserve the right to liberalize these restrictions on transfers from the fixed account, depending on market conditions. Any such liberalization will generally apply equally to all policy owners. However, we may impose different restrictions on third parties acting on behalf of policy owners, such as market timing services.
We process all transfers and determine all values in connection with transfers on the valuation date we receive your request, except as described below for the dollar cost averaging or automatic rebalancing programs.
Dollar Cost Averaging. Anytime you have at least $10,000 invested in a subaccount that invests in the ING Limited Maturity Bond Portfolio or the ING Liquid Assets Portfolio (the source subaccount), you may elect dollar cost averaging. There is no charge for this feature.
Dollar cost averaging is a long-term investment program through which you direct us to automatically transfer at regular intervals a specific dollar amount or percentage of subaccount value from the source subaccount to one or more of the other subaccounts. We do not permit transfers to the fixed account or the loan account under this program. You may request that the dollar cost averaging transfers occur on a monthly, quarterly, semi-annual or annual basis.
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This systematic plan of transferring policy values is intended to help reduce the risk of investing too much when the price of a funds shares is high. It also helps reduce the risk of investing too little when the price of a funds shares is low. Because you transfer the same dollar amount to the subaccounts each period, you purchase more units when the unit value is low and you purchase fewer units when the unit value is high.
You may add dollar cost averaging to your policy at any time. The first dollar cost averaging date must be at least one day after we receive your dollar cost averaging request. If your state requires a refund of all premium received during the free look period, dollar cost averaging begins after the end of your free look period.
You may have both dollar cost averaging and automatic rebalancing at the same time. However, your dollar cost averaging source subaccount cannot be included in your automatic rebalancing program.
Dollar cost averaging does not assure a profit nor does it protect you against a loss in a declining market.
You may discontinue your dollar cost averaging program at any time. We reserve the right to discontinue, modify or suspend this program, and dollar cost averaging will automatically terminate on:
Automatic Rebalancing. Automatic rebalancing is a program for simplifying the process of asset allocation and maintaining a consistent allocation of your variable and fixed account values among your chosen investment options. There is no charge for this feature.
If you elect automatic rebalancing, we periodically transfer amounts among the investment options to match the asset allocation percentages you have chosen. This action rebalances the amounts in the investment options that do not match your set allocation percentages. This mismatch can happen if an investment option outperforms another investment option over the time period between automatic rebalancing transfers.
Automatic rebalancing may occur on the same day of the month on a monthly, quarterly, semi-annual or annual basis. If you do not specify a frequency, automatic rebalancing will occur quarterly.
The first transfer occurs on the date you select (after your free look period if your state requires return of premium during the free look period). If you do not request a date, processing is on the last valuation date of the calendar quarter in which we receive your request.
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You may have both automatic rebalancing and dollar cost averaging at the same time. However, the source subaccount for your dollar cost averaging program cannot be included in your automatic rebalancing program. You may not include the loan account.
Automatic rebalancing does not assure a profit nor does it protect you against a loss in a declining market.
You may change your allocation percentages for automatic rebalancing at any time. Your allocation change is effective on the valuation date that we receive it at our Customer Service Center. If you reduce the amount allocated to the fixed account, it is considered a transfer from that account. You must meet the requirements for the maximum transfer amount and time limitations on transfers from the fixed account.
If you have a death benefit guarantee and you ask for an automatic rebalancing allocation that does not meet the death benefit guarantee diversification requirements, we will notify you and ask you for revised instructions. If you have a death benefit guarantee and you terminate automatic rebalancing, you still must meet the diversification requirements for the guarantee period to continue. See Death Benefit Guarantees, page 36.
You may discontinue your automatic rebalancing program at any time. We reserve the right to discontinue, modify or suspend this program, and automatic rebalancing will automatically terminate if the policy is in the grace period on any date when automatic rebalancing transfers are scheduled.
Limits on Frequent or Disruptive Transfers. The policy is not designed to serve as a vehicle for frequent transfers. Frequent transfer activity can disrupt management of a fund and raise its expenses through:
This in turn can have an adverse effect on fund performance. Accordingly, individuals or organizations that use market-timing investment strategies or make frequent transfers should not purchase the policy.
We have an excessive trading policy and monitor transfer activity. You will violate our excessive trading policy if your transfer activity:
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If we determine that you have violated our excessive trading policy we will take the following actions. Upon the first violation, we will send to you a one time warning letter. After a second violation we will suspend your transfer privileges via facsimile, telephone, email and the internet, and your transfer privileges will be limited to submission by regular U.S. mail for a period of six months. Our suspension of your electronic transfer privileges will relate to all transfers, not just those fund(s) involved in the excessive transfer activity, and will extend to other company variable life insurance policies and variable annuity contracts that you own. It may be extended to other variable policies and contracts that are issued to you by our affiliates. At the end of the six month suspension period, your electronic transfer privileges will be reinstated. If, however, you violate our excessive trading policy again, after your el ectronic transfer privileges have been reinstated, we will suspend your electronic transfer privileges permanently. We will notify you in writing if we take any of these actions.
Additionally, if we determine that our excessive trading policy has been violated by a market-timing organization or an individual or other party that is authorized to give transfer instructions on your behalf, whether such violation relates to your policy or another owners variable policy or contract, we will also take the following actions, without prior notice:
Our current definition of excessive trading is more than one purchase and sale of the same underlying fund within a 30-day period. We do not count transfers associated with scheduled dollar cost averaging or automatic rebalancing programs (including reoccurring rebalancing transactions under corporate owned policies) and transfers involving certain de minimis amounts when determining whether transfer activity is excessive.
The company does not allow exceptions to our excessive trading policy. We reserve the right to modify our excessive trading policy, or the policy as it relates to a particular fund, at any time without prior notice, depending on, among other factors, the needs of the underlying fund(s), the best interests of policy owners and fund investors and/or state or federal regulatory requirements. If we modify our policy, it will be applied uniformly to all policy owners or, as applicable, to all policy owners investing in the underlying fund.
Our excessive trading policy may not be completely successful in preventing market timing or excessive trading activity. If it is not completely successful, fund performance and management may be adversely affected, as noted above.
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Conversion to a Guaranteed Policy. During the first two policy years you may permanently convert your policy to a guaranteed policy, unless state law requires differently. If you elect to make this change, unless state law requires that we issue to you a new guaranteed policy, we will permanently transfer the amounts you have invested in the subaccounts of the variable account to the fixed account and allocate all future net premium to the fixed account. After you exercise this right you may not allocate future premium payments or make transfers to the subaccounts of the variable account. We do not charge for this change. Contact our Customer Service Center or your agent/registered representative for information about the conversion rights available in your state.
Partial Withdrawals |
Beginning in the second policy year (or the first policy year for in corridor policies) you may withdraw part of your policys surrender value. Twelve partial withdrawals are currently allowed each policy year, and a partial withdrawal must be at least $100. The maximum partial withdrawal you may take is the amount which leaves $500 as your surrender value (or for in corridor policies during the first policy year, the amount that would cause your policy to no longer qualify as in corridor). If your withdrawal request is for more than the maximum, we will require you to surrender your policy or reduce the amount of the withdrawal.
A policy is in corridor if: |
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We charge a partial withdrawal fee of $10 for each partial withdrawal. See Partial Withdrawal Fee, page 25.
Unless you specify a different allocation, we will take partial withdrawals from the fixed account and the subaccounts of the variable account in the same proportion that your value in each has to your net policy value immediately before the withdrawal. We will determine these proportions at the end of the valuation period during which we receive your partial withdrawal request. However, amounts withdrawn from the fixed account may not exceed the amount of the total withdrawal multiplied by the ratio of your policy value in the fixed account to your net policy value immediately before the partial withdrawal.
Unless you request otherwise, proceeds from a partial withdrawal generally will be paid into an interest bearing account that you can access, without penalty, through a checkbook feature. See Transaction Processing, page 66.
Effects of a Partial Withdrawal. We will reduce your policy value by the amount of the partial withdrawal plus the partial withdrawal fee. Your policy value may also be reduced by the amount of a surrender charge if you take a partial withdrawal which decreases your base insurance coverage.
A partial withdrawal may also cause the termination of the death benefit guarantee because we deduct the amount of the partial withdrawal from the total premiums paid when calculating whether you have paid sufficient premiums in order to maintain the death benefit guarantee.
The amount of your base insurance coverage is not reduced by the amount of a partial withdrawal when the base death benefit has been increased to qualify your policy as life insurance under the Internal Revenue Code and the amount withdrawn is not greater than that which reduces your policy value to the level which no longer requires that the base death benefit be increased for Internal Revenue Code purposes. Otherwise, depending upon the death benefit option in effect, a partial withdrawal may reduce the amount of your base insurance coverage.
Under death benefit Option 1, a partial withdrawal will reduce the amount of your base insurance coverage by the amount of the partial withdrawal.
Under death benefit Option 2, a partial withdrawal will not reduce the amount of your base insurance coverage.
Under death benefit Option 3, a partial withdrawal will reduce the amount of your base insurance coverage by the amount of a partial withdrawal in excess of the total premium we have received from you minus the sum of all your prior partial withdrawals.
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If a partial withdrawal reduces the amount of base insurance coverage, the total amount of insurance coverage will also be reduced for the current year and all future years by an equal amount. Therefore, a partial withdrawal can affect the amount of pure insurance protection under the policy.
We will not allow a partial withdrawal if the amount of total insurance coverage after the withdrawal would be less than $100,000 ($50,000 for guaranteed issue policies).
A reduction in the amount of base insurance coverage as a result of a partial withdrawal will be pro-rated among the existing coverage segments, unless state law requires otherwise.
A partial withdrawal may have adverse tax consequences depending on the circumstances. See Tax Status of the Policy, page 57.
Substitution of the Insured Person
Subject to our standard underwriting rules and certain other conditions, after the first policy year a corporate or business owner may elect to substitute one insured person who is an employee for another. When a corporate or business owner makes this election we will transfer the net policy value of the policy covering the initial insured person to a new policy which covers the substitute insured person. The fees and charges for the new policy will be based on the individual characteristics of the substitute insured person and the policy date of the new policy. Substitution of the insured person is a taxable event and may also, depending on individual circumstances, cause the policy to be classified as a modified endowment contract. See Modified Endowment Contracts, page 58. A corporate policy owner should consult with a qualified tax adviser to determine the particular consequences of electing to substitute one insured person who is an employee for another.
Termination of Coverage
Your insurance coverage will continue under the policy until you surrender your policy or it lapses.
Surrender
In the policy the | You may surrender your policy for its surrender value at any time after the free look period while the insured person is alive. Your surrender value is your policy value minus any surrender charge and any outstanding loan amount and accrued loan interest. You may take your surrender value in other than one payment. | |
surrender value is | ||
referred to as the | ||
Net Cash | ||
Surrender Value. |
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We compute your surrender value as of the valuation date we receive your written surrender request and policy at our Customer Service Center. All insurance coverage ends on the date we receive your surrender request and policy.
Unless you request otherwise, we will deposit your surrender value into an interest bearing account that you can access, without penalty, through a checkbook feature. See Transaction Processing, page 66.
If you surrender your policy we may deduct a surrender charge. See Surrender Charge, page 25. Surrender of your policy may have adverse tax consequences. See Distributions Other than Death Benefits, page 58.
Lapse |
Your policy will not lapse and your insurance coverage under the policy will continue if on any monthly processing date:
Grace Period. If on a monthly processing date you do not meet any of these conditions, your policy will enter the 61-day grace period during which you must make a sufficient premium payment to avoid having your policy lapse and insurance coverage terminate.
We will notify you that your policy is in a grace period at least 30 days before it ends. We will send this notice to you (and a person to whom you have assigned your policy) at your last known address in our records. We will notify you of the premium payment necessary to prevent your policy from lapsing. This amount generally equals the past due charges, plus the estimated periodic fees and charges, and charges of any optional rider benefits for the next two months. If we receive payment of the required amount before the end of the grace period, we apply it to your policy in the same manner as your other premium payments, then we deduct the overdue amounts from your policy value.
If you do not pay the full amount within the 61-day grace period, your policy and its riders lapse without value. We withdraw your remaining variable and fixed account values, deduct amounts you owe us and inform you that your coverage has ended.
If the insured person dies during the grace period we pay death benefit proceeds to your beneficiaries with reductions for your outstanding loan amount, accrued loan interest and periodic fees and charges owed.
During the early policy years your net policy value may not be enough to cover the periodic fees and charges due each month, and you may need to pay sufficient premium to keep the death benefit guarantee in force. See Premium Payments, page 21.
If your policy lapses, any distribution of policy value may be subject to current taxation.
See Distributions Other than Death Benefits, page 58.
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Reinstatement |
Reinstatement means putting a lapsed policy back in force. You may reinstate a lapsed policy and its riders (other than a death benefit guarantee) by written request any time within five years after it has lapsed. A policy that was surrendered may not be reinstated.
To reinstate the policy and any riders, you must submit evidence of insurability satisfactory to us and pay a premium large enough to keep the policy and any rider benefits in force during the grace period and for at least two months after reinstatement. When we reinstate your policy, we reinstate the surrender charges for the amount and time remaining when your coverage lapsed. If you had a loan existing when coverage lapsed, we will reinstate it with accrued loan interest to the date of the lapse.
A policy that lapses during a seven pay testing period and is reinstated more than 90 days after lapsing may be classified as a modified endowment contract for tax purposes. In general, a seven pay testing period is the first seven policy years and the first seven years after certain changes to your policy. You should consult with a qualified tax adviser to determine whether reinstating a lapsed policy will cause it to be classified as a modified endowment contract. See Modified Endowment Contracts, page 58.
TAX CONSIDERATIONS
The following summary provides a general description of the federal income tax considerations associated with the policy and does not purport to be complete or to cover federal estate, gift and generation-skipping tax implications, state and local taxes or other tax situations. This discussion is not intended as tax advice. Counsel or other qualified tax advisers should be consulted for more complete information. This discussion is based upon our understanding of the present federal income tax laws. No representation is made as to the likelihood of continuation of the present federal income tax laws or as to how they may be interpreted by the Internal Revenue Service (IRS).
The following discussion generally assumes that the policy will qualify as a life insurance contract for federal tax purposes.
Tax Status of the Company |
We are taxed as a life insurance company under the Internal Revenue Code. The variable account is not a separate entity from us. Therefore, it is not taxed separately as a regulated investment company, but is taxed as part of the company. We automatically apply investment income and capital gains attributable to the separate account to increase reserves under the policy. Because of this, under existing federal tax law we believe that any such income and gains will not be taxed to us. In addition, any foreign tax credits attributable to the separate account will first be used to reduce any income taxes imposed on the variable account before being used by the company.
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In summary, we do not expect that we will incur any federal income tax liability attributable to the variable account and we do not intend to make provisions for any such taxes. However, if changes in the federal tax laws or their interpretation result in our being taxed on income or gains attributable to the variable account, then we may impose a charge against the variable account (with respect to some or all of the policies) to set aside provisions to pay such taxes.
Tax Status of the Policy |
This policy is designed to qualify as a life insurance contract under the Internal Revenue Code. All terms and provisions of the policy shall be construed in a manner that is consistent with that design. In order to qualify as a life insurance contract for federal income tax purposes and to receive the tax treatment normally accorded life insurance contracts under federal tax law, a policy must satisfy certain requirements that are set forth in Section 7702 of the Internal Revenue Code. Specifically, the policy must meet the requirements of either the cash value accumulation test or the guideline premium test.
See Death Benefit Qualification Tests, page 33. If your variable life policy does not satisfy one of these two alternate tests, it will not be treated as life insurance under Internal Revenue Code 7702. You would then be subject to federal income tax on your policy income as you earn it. While there is very little guidance as to how these requirements are applied, we believe it is reasonable to conclude that our policies satisfy the applicable requirements. If it is subsequently determined that a policy does not satisfy the applicable requirements, we will take appropriate and reasonable steps to bring the policy into compliance with such requirements and we reserve the right to restrict policy transactions or modify your policy in order to do so. See Tax Treatment of Policy Death Benefits, page 58.
Diversification and Investor Control Requirements
In addition to meeting the Internal Revenue Code Section 7702 tests, Internal Revenue Code Section 817(h) requires investments within a separate account, such as our variable account, to be adequately diversified. The Treasury has issued regulations that set the standards for measuring the adequacy of any diversification, and the Internal Revenue Service has published various revenue rulings and private letter rulings addressing diversification issues. To be adequately diversified, each subaccount and its corresponding fund must meet certain tests. If these tests are not met your variable life policy will not be adequately diversified and not treated as life insurance under Internal Revenue Code Section 7702. You would then be subject to federal income tax on your policy income as you earn it. Each subaccounts corresponding fund has represented that it will meet the diversification standards that apply to your policy. Accor dingly, we believe it is reasonable to conclude that the diversification requirements have been satisfied. If it is determined, however, that your variable life policy does not satisfy the applicable diversification regulations and rulings because a subaccounts corresponding fund fails to be adequately diversified for whatever reason, we will take appropriate and reasonable steps to bring your policy into compliance with such regulations and rulings and we reserve the right to modify your policy as necessary in order to do so.
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In certain circumstances, owners of a variable life insurance policy have been considered, for federal income tax purposes, to be the owners of the assets of the separate account supporting their policies, due to their ability to exercise investment control over such assets. When this is the case, the policy owners have been currently taxed on income and gains attributable to the separate account assets. Your ownership rights under your policy are similar to, but different in some ways from those described by the IRS in rulings in which it determined that policy owners are not owners of separate account assets. For example, you have additional flexibility in allocating your premium payments and your policy values. These differences could result in the IRS treating you as the owner of a pro rata share of the variable account assets. We do not know what standards will be set forth in the future, if any, in Treasury regulations or r ulings. We reserve the right to modify your policy, as necessary, to try to prevent you from being considered the owner of a pro rata share of the variable account assets, or to otherwise qualify your policy for favorable tax treatment.
Tax Treatment of Policy Death Benefits
The death benefit, or an accelerated death benefit, under a policy is generally excludable from the gross income of the beneficiary(ies) under Section 101(a)(1) of the Internal Revenue Code. However, there are exceptions to this general rule. Additionally, federal and local transfer, estate, inheritance and other tax consequences of ownership or receipt of policy proceeds depend on the circumstances of each policy owner or beneficiary(ies). A qualified tax adviser should be consulted about these consequences.
Distributions Other than Death Benefits
Generally, the policy owner will not be taxed on any of the policy value until there is a distribution. When distributions from a policy occur, or when loan amounts are taken from or secured by a policy, the tax consequences depend on whether or not the policy is a modified endowment contract.
Modified Endowment Contracts |
Under the Internal Revenue Code, certain life insurance contracts are classified as modified endowment contracts and are given less favorable tax treatment than other life insurance contracts. Due to the flexibility of the policies as to premiums and benefits, the individual circumstances of each policy will determine whether or not it is classified as a modified endowment contract. The rules are too complex to be summarized here, but generally depend on the amount of premiums we receive during the first seven policy years. Certain changes in a policy after it is issued, such as reduction or increase in benefits, policy reinstatement or substitution of the insured person, could also cause it to be classified as a modified endowment contract or increase the period during which the policy must be tested. A current or prospective policy owner should consult with a qualified tax adviser to determine whether or not a polic y transaction will cause the policy to be classified as a modified endowment contract.
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If a policy becomes a modified endowment contract, distributions that occur during the policy year will be taxed as distributions from a modified endowment contract. In addition, distributions from a policy within two years before it becomes a modified endowment contract will be taxed in this manner. This means that a distribution made from a policy that is not a modified endowment contract could later become taxable as a distribution from a modified endowment contract.
Additionally, all modified endowment contracts that are issued by us (or our affiliates) to the same policy owner during any calendar year are treated as one modified endowment contract for purposes of determining the amount includible in the policy owners income when a taxable distribution occurs.
Once a policy is classified as a modified endowment contract, the following tax rules apply both prospectively and to any distributions made in the prior two years:
Policies That Are Not Modified Endowment Contracts
Distributions other than death benefits from a policy that is not classified as a modified endowment contract are generally treated first as a recovery of the policy owners investment in the policy. Only after the recovery of all investment in the policy is there taxable income. However, certain distributions made in connection with policy benefit reductions during the first 15 policy years may be treated in whole or in part as ordinary income subject to tax. Consult a qualified tax adviser to determine whether or not any distributions made in connection with a reduction in policy benefits will be subject to tax.
Loan amounts from or secured by a policy that is not a modified endowment contract are generally not taxed as distributions. However, the tax consequences of such a loan that is outstanding after policy year five are uncertain and a qualified tax adviser should be consulted about such loans. Finally, neither distributions from, nor loan amounts from or secured by, a policy that is not a modified endowment contract are subject to the 10% additional income tax.
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Investment in the Policy |
Your investment in the policy is generally the total of your aggregate premiums. When a distribution is taken from the policy, your investment in the policy is reduced by the amount of the distribution that is tax free.
Other Tax Matters Policy Loans |
In general, interest on a policy loan will not be deductible. A limited exception to this rule exists for certain interest paid in connection with certain key person insurance. You should consult a qualified tax adviser before taking out a loan to determine whether you qualify under this exception.
Moreover, the tax consequences associated with a preferred loan (loans where the interest rate charged is less than or equal to the interest rate credited) available in the policy are uncertain. Before taking out a policy loan, you should consult a qualified tax adviser as to the tax consequences.
If a loan from a policy is outstanding when the policy is surrendered or lapses, then the amount of the outstanding indebtedness will be added to the amount treated as a distribution from the policy and will be taxed accordingly.
Accelerated Death Benefit Rider |
We believe that payments under the Accelerated Death Benefit Rider should be fully excludable from the gross income of the beneficiary if the beneficiary is the insured under the policy, or is an individual who has no business or financial connection with the insured. (See Accelerated Death Benefit Rider, page 42, for more information about this rider.) However, you should consult a qualified tax adviser about the consequences of adding this rider to a policy or requesting payment under this rider.
Continuation of a Policy |
The tax consequences of continuing the policy after the insured person reaches age 100 are unclear. For example, in certain situations it is possible that after the insured person reaches age 100 the IRS could treat you as being in constructive receipt of the policy value if the policy value becomes equal to the death benefit. If this happens, an amount equal to the excess of the policy value over the investment in the policy would be includible in your income at that time. Because we believe the policy will continue to constitute life insurance at that time and the IRS has not issued any guidance on this issue, we do not intend to tax report any earnings due to the possibility of constructive receipt in this circumstance. You should consult a qualified tax adviser if you intend to keep the policy in force after the insured person reaches age 100.
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Section 1035 Exchanges |
Internal Revenue Code Section 1035 provides, in certain circumstances, that no gain or loss will be recognized on the exchange of one life insurance policy solely for another life insurance policy or an endowment, annuity or qualified long term care contract. We accept 1035 exchanges with outstanding loans. Special rules and procedures apply to 1035 exchanges. These rules can be complex, and if you wish to take advantage of Section 1035, you should consult your qualified tax adviser.
Tax-exempt Policy Owners |
Special rules may apply to a policy that is owned by a tax-exempt entity. Tax-exempt entities should consult a qualified tax adviser regarding the consequences of purchasing and owning a policy. These consequences could include an effect on the tax-exempt status of the entity and the possibility of the unrelated business income tax.
Tax Law Changes |
Although the likelihood of legislative action or tax reform is uncertain, there is always the possibility that the tax treatment of the policy could be changed by legislation or other means. It is also possible that any change may be retroactive (that is, effective before the date of the change). You should consult a qualified tax adviser with respect to legislative developments and their effect on the policy.
Policy Changes to Comply with the Law
So that your policy continues to qualify as life insurance under the Internal Revenue Code, we reserve the right to refuse to accept all or part of your premium payments or to change your death benefit. We may refuse to allow you to make partial withdrawals that would cause your policy to fail to qualify as life insurance. We also may make changes to your policy or its riders or make distributions from your policy to the degree that we deem necessary to qualify your policy as life insurance for tax purposes.
If we make any change of this type, it applies the same way to all affected policies.
Any increase in your death benefit will cause an increase in your cost of insurance charges.
Policy Availability and Qualified Plans
Policy owners may use the policy in various arrangements, including:
The tax consequences of these plans may vary depending on the particular facts and circumstances of each arrangement. If you want to use your policy with any of these various arrangements, you should consult a qualified tax adviser regarding the tax issues of your particular arrangement.
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Life Insurance Owned by Businesses
In recent years, Congress has adopted new rules relating to life insurance owned by businesses. For example, in the case of a policy issued to a nonnatural taxpayer, or held for the benefit of such an entity, a portion of the taxpayers otherwise deductible interest expenses may not be deductible as a result of ownership of a policy even if no loans are taken under the policy. (An exception to this rule is provided for certain life insurance contracts that cover the life of an individual who is a 20% owner, or an officer, director, or employee of a trade or business.) In addition, in certain instances, a portion of the death benefit payable under an employer-owned contract may be taxable. As another example, special rules apply if you are subject to the alternative minimum tax. Any business contemplating the purchase of a new policy or a change in an existing policy should consult a qualified tax adviser.
Income Tax Withholding |
The IRS requires us to withhold income taxes from any portion of the amounts individuals receive in a taxable transaction. We generally do not withhold income taxes if you elect in writing not to have withholding apply. If the amount withheld for you is insufficient to cover income taxes, you will have to pay additional income taxes and possibly penalties later. We will also report to the IRS the amount of any taxable distributions.
Policy Transfers |
The transfer of the policy or designation of a beneficiary may have federal, state and/or local transfer and inheritance tax consequences, including the imposition of gift, estate and generation-skipping transfer taxes. The individual situation of each policy owner or beneficiary will determine the extent, if any, to which federal, state and local transfer and inheritance taxes may be imposed and how ownership or receipt of policy proceeds will be treated for purposes of federal, state and local estate, inheritance, generation skipping and other taxes.
You should consult qualified legal or tax advisers for complete information on federal, state, local and other tax considerations.
ADDITIONAL INFORMATION
General Policy Provisions |
Your Policy |
The policy is a contract between you and us and is the combination of:
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If you make a change to your coverage, we give you a copy of your changed application and new policy schedules. If you send your policy to us, we attach these items to your policy and return it to you. Otherwise, you need to attach them to your policy.
Unless there is fraud, we consider all statements made in an application to be representations and not guarantees. We use no statement to deny a claim, unless it is in an application.
A president or other officer of our company and our secretary or assistant secretary must sign all changes or amendments to your policy. No other person may change its terms or conditions.
Guaranteed Issue |
We may offer policies on a guaranteed issue basis for certain individuals, groups or sponsored arrangements. We issue these policies up to a preset face amount with reduced evidence of insurability. Guaranteed issue policies carry a different mortality risk compared with policies that are fully underwritten, and we may charge different cost of insurance rates for guaranteed issue policies. The cost of insurance rates under these circumstances may depend on the:
Generally, most guaranteed issue policies have higher overall charges for insurance than similar underwritten policies issued in the standard rate classes. This means that an insured person in a group or sponsored arrangement could get individual or fully underwritten insurance coverage at a lower overall cost.
Age |
We issue your policy at the insured persons age (stated in your policy schedule) based on the nearest birthday to the policy date. On the policy date, the insured person can generally be no more than age 85 (age 70 for guaranteed issue policies).
We often use age to calculate rates, charges and values. We determine the insured persons age at a given time by adding the number of completed policy years to the age calculated at issue and shown in the schedule.
Ownership |
The original owner is the person named as the owner in the policy application. The owner can exercise all rights and receive benefits during the life of the insured person. These rights include the right to change the owner, beneficiaries or the method designated to pay death benefit proceeds.
As a matter of law, all rights of ownership are limited by the rights of any person who has been assigned rights under the policy and any irrevocable beneficiaries.
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You may name a new owner by giving us written notice. The effective date of the change to the new owner is the date the prior owner signs the notice. However, we will not be liable for any action we take before a change is recorded at our Customer Service Center. A change in ownership may cause the prior owner to recognize taxable income on gain under the policy.
Beneficiaries |
You, as owner, name the beneficiaries when you apply for your policy. The primary beneficiaries who survive the insured person receive the death benefit proceeds. Other surviving beneficiaries receive death benefit proceeds only if there are no surviving primary beneficiaries. If more than one beneficiary survives the insured person, they share the death benefit proceeds equally, unless you specify otherwise. If none of your policy beneficiaries has survived the insured person, we pay the death benefit proceeds to you or to your estate, as owner. If a beneficiary is a minor, the death benefit proceeds will be held in an interest bearing account until that beneficiary attains the age of majority.
You may name new beneficiaries during the insured persons lifetime. We pay death benefit proceeds to the beneficiaries whom you have most recently named according to our records. We do not make payments to multiple sets of beneficiaries. The designation of certain beneficiaries may have tax consequences. See Other Tax Matters, page 60.
Collateral Assignment |
You may assign your policy by sending written notice to us. After we record the assignment, your rights as owner and the beneficiaries rights (unless the beneficiaries were made irrevocable beneficiaries under an earlier assignment) are subject to the assignment. It is your responsibility to make sure the assignment is valid. The transfer or assignment of a policy may have tax consequences. See Other Tax Matters, page 60.
Incontestability |
After your policy has been in force and the insured person is alive for two years from the policy date and from the effective date of any new coverage segment, an increase in any other benefit or reinstatement, we will not question the validity of statements in your applicable application.
Misstatements of Age or Gender |
Notwithstanding the Incontestability provision above, if the insured persons age or gender has been misstated, we adjust the death benefit to the amount that would have been purchased for the insured persons correct age and gender. We base the adjusted death benefit on the cost of insurance charges deducted from your policy value on the last monthly processing date before the insured persons death, or as otherwise required by law.
If unisex cost of insurance rates apply, we do not make any adjustments for a misstatement of gender.
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Suicide |
If the insured person commits suicide (while sane or insane), within two years of your policy date, unless otherwise required by law, we limit death benefit proceeds to:
We make a limited payment to the beneficiaries for a new coverage segment or other increase if the insured person commits suicide (while sane or insane), within two years of the effective date of a new coverage segment or within two years of an increase in any other benefit, unless otherwise required by law. The limited payment is equal to the cost of insurance and periodic fees and charges which that deducted for the increase.
Anti-Money Laundering |
In order to protect against the possible misuse of our products in money laundering or terrorist financing, we have adopted an anti-money laundering program satisfying the requirements of the USA PATRIOT Act. Among other things, this program requires us, our agents and customers to comply with certain procedures and standards that serve to assure that our customers identities are properly verified and that premiums are not derived from improper sources.
Under our anti-money laundering program, we may require policy owners, insured persons and/or beneficiaries to provide sufficient evidence of identification, and we reserve the right to verify any information provided to us by accessing information databases maintained internally or by outside firms.
We may also refuse to accept certain forms of premium payments or loan repayments (travelers cheques, 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 the payment to you and your policy either entering the 61-day grace period or lapsing. See Lapse, page 55. See also Premium Payments Affect Your Coverage, page 22.
Applicable laws designed to prevent terrorist financing and money laundering might, in certain circumstances, require us to block certain transactions until authorization is received from the appropriate regulator. We may also be required to provide additional information about you and your policy to government regulators.
Our anti-money laundering program is subject to change without notice to take account of changes applicable in laws or regulations and our ongoing assessment of our exposure to illegal activity.
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Transaction Processing |
Generally, within seven days of when we receive all information required to process a payment, we pay:
We may delay processing these transactions if:
SEC rules and regulations generally determine whether or not these conditions exist.
We execute transfers among the subaccounts as of the valuation date of our receipt of your request at our Customer Service Center.
We determine the death benefit as of the date of the insured persons death. The death benefit proceeds are not affected by subsequent changes in the value of the subaccounts.
We may delay payment from our fixed account for up to six months, unless law requires otherwise, of surrender proceeds, withdrawal amounts or loan amounts. If we delay payment more than 30 days, we pay interest at our declared rate (or at a higher rate if required by law) from the date we receive your complete request.
Unless you request otherwise, we generally pay death benefit proceeds, surrender value and partial withdrawals into an interest bearing account that may be accessed by you or the beneficiary, as applicable, through a checkbook feature. This interest bearing account is backed by our general account, and the checkbook feature may be used to access the payment at any time without penalty.
Notification and Claims Procedures
Except for certain authorized telephone requests, we must receive in writing any election, designation, change, assignment or request made by the owner.
You must use a form acceptable to us. We are not liable for actions taken before we receive and record the written notice. We may require you to return your policy for changes to your policy or if you surrender it.
If the insured person dies while your policy is in force, please let us know as soon as possible. We will send you instructions on how to make a claim. As proof of the insured persons death, we may require proof of the deceased insured persons age and a certified copy of the death certificate.
The beneficiaries and the deceased insured persons next of kin may need to sign authorization forms. These forms allow us to get information such as medical records of doctors and hospitals used by the deceased insured person.
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Telephone Privileges |
Telephone privileges are automatically provided to you and your agent/registered representative, unless you decline it on the application or contact our Customer Service Center. Telephone privileges allow you or your agent/registered representative to call our Customer Service Center to:
Our Customer Service Center uses reasonable procedures to make sure that instructions received by telephone are genuine. These procedures may include:
By accepting telephone privileges, you authorize us to record your telephone calls with us. If we use reasonable procedures to confirm instructions, we are not liable for losses from unauthorized or fraudulent instructions. We may discontinue this privilege at any time. See Limits on Frequent or Disruptive Transfers, page 50.
Telephone and facsimile privileges may not always be available. Telephone or fax systems, whether yours, your service providers or your agent/agent representatives, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may prevent or delay our receipt of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you are experiencing problems, you should make your transfer request by written request.
Non-participation |
Your policy does not participate in the surplus earnings of Security Life of Denver Insurance Company.
Advertising Practices and Sales Literature
We may use advertisements and sales literature to promote this product, including:
We may use information regarding the past performance of the subaccounts and funds. Past performance is not indicative of future performance of the subaccounts or funds and is not reflective of the actual investment experience of policy owners.
We may feature certain subaccounts, the underlying funds and their managers, as well as describe asset levels and sales volumes. We may refer to past, current, or prospective economic trends and investment performance or other information we believe may be of interest to our customers.
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Settlement Options |
You may elect to take the surrender value in other than one lump-sum payment. Likewise, you may elect to have the beneficiaries receive the death benefit proceeds other than in one lump-sum payment, if you make this election during the insured persons lifetime. If you have not made this election, the beneficiaries may do so within 60 days after we receive proof of the insured persons death.
The investment performance of the subaccounts does not affect payments under these settlement options. Instead, interest accrues at a fixed rate based on the option you choose. The declared interest rate will never be less than 3.00%, and any declared interest rate will be in effect for at least 12 months. Payment options are subject to our rules at the time you make your selection. Currently, a periodic payment must be at least $20 and the total proceeds must be at least $2,000.
The following settlement options are available:
If none of these settlement options have been elected, your surrender value or the death benefit proceeds will be paid in one lump-sum payment.
Unless you request otherwise, death benefit proceeds generally will be paid into an interest bearing account that is backed by our general account and can be accessed by the beneficiary through a checkbook feature. The beneficiary may access the death benefit proceeds at any time without penalty. Interest earned on this account may be less than interest paid under other settlement options. See Transaction processing, page 66.
Reports |
Annual Statement. We will send you an annual statement once each policy year showing the amount of insurance coverage under your policy as well as your policys death benefit, policy and surrender values, the amount of premiums you have paid, the amounts you have withdrawn, borrowed or transferred and the fees and charges we have imposed since the last statement.
We send semi-annual reports with financial information on the funds, including a list of investment holdings of each fund.
We send confirmation notices to you throughout the year for certain policy transactions such as transfers between investment options, partial withdrawals and loans. You are responsible for reviewing the confirmation notices to verify that the transactions are being made as requested.
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Illustrations. To help you better understand how your policy values will vary over time under different sets of assumptions, we will provide you with a personalized illustration projecting future results based on the age and risk classification of the insured person and other factors such as the amount of insurance coverage, death benefit option, planned premiums and rates of return (within limits) you specify. We may assess a charge not to exceed $25 for each illustration you request after the first in a policy year. See Excess Illustration Fee, page 26. Subject to regulatory approval, personalized illustrations may be based upon a weighted average rather than an arithmetic averag e of fund expenses.
Other Reports. We will mail to you at your last known address of record at least annually a report containing such information as may be required by any applicable law. To reduce expenses, only one copy of most financial reports and prospectuses, including reports and prospectuses for the funds, will be mailed to your household, even if you or other persons in your household have more than one policy issued by us or an affiliate. Call our Customer Service Center toll-free at 1-877-253-5050 if you need additional copies of financial reports, prospectuses, historical account information or annual or semi-annual reports or if you would like to receive one copy for each policy in all future mailings.
Distribution of the Policies |
The companys affiliate, ING America Equities, Inc., serves as the principal underwriter (distributor) for the policies. ING America Equities, Inc. was organized under the laws of the State of Colorado on September 27, 1993 and is registered as a broker/dealer with the SEC and the NASD. We pay ING America Equities, Inc. under a distribution agreement dated May 1, 2002. ING America Equities, Inc.s principal office is located at 1290 Broadway, Denver, Colorado 80203-5699.
ING America Equities, Inc. offers the securities under the policies on a continuous basis. For the years ended December 31, 2006, 2005 and 2004, the aggregate amount of underwriting commissions paid to ING America Equities, Inc. was $30,168,287, $35,623,260 and $34,937,360, respectively.
We sell our policies through licensed insurance agents who are registered representatives of affiliated and unaffiliated broker/dealers. All broker/dealers who sell the policy have entered into selling agreements with us and ING America Equities, Inc., the principal underwriter/distributor of the policies. Under these selling agreements, we pay the broker/dealers for selling the policy, and part of that payment goes to your agent/registered representative.
The amounts that we pay for the sale of the policy can generally be categorized as either commissions or other amounts. The commissions we pay can be further categorized as base commissions (which may include a portion for wholesaling commissions) and supplemental commissions.
Base commissions consist of a percentage of premium we receive for the policy up to the target premium amount, a percentage of premium we receive for the policy in excess of the target premium amount and, as a trail commission, a percentage of your average net policy value. We pay up to 90% of premium received up to target premium, 3% of premium received in excess of target premium, and 0.10% of the average net policy value beginning in the second policy year. These percentages reflect the amounts we will pay in the first policy year and the percentages may decrease thereafter.
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A portion of the base commission may be used to pay wholesaling commissions, which are based on a percentage of the cumulative target premium we receive for the policy and certain other designated insurance products issued by the company and/or its affiliates during a calendar year.
Supplemental commissions are paid based on a percentage of target premiums we receive for the policy and certain other designated insurance products sold during a calendar year. The percentages of supplemental commissions that we will pay may increase as the aggregate amount of premiums received for all products issued by the company and/or its affiliates during the calendar year increases. The maximum percentage of supplemental commissions that we may pay is 43%.
Generally, the commissions paid on premiums for base coverage under the policy are greater than those paid on premiums for coverage under the Adjustable Term Insurance Rider. Be aware of this and discuss with your agent/registered representative the right blend of base coverage and Adjustable Term Insurance Rider coverage for you.
In addition to these commissions, we may also pay other amounts to broker/dealers and/or their agents/registered representatives. These amounts may include:
We pay commissions, other amounts and the costs of all other incentives or training programs from our resources which include the policys fees and charges.
The following list shows the top 25 selling firms that, during 2006, received the most, in the aggregate, from us in connection with the sale of all of our variable life insurance policies, ranked by total dollars received: [List to be updated by amendment.]
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Legal Proceedings [To be updated by amendment.]
We are not aware of any pending legal proceedings that involve the variable account as a party.
The company is involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation/arbitrations, 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/arbitrations, in light of existing insurance, reinsurance, and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a materially adverse effect on the companys operations or financial position.
ING America Equities, Inc., the principal underwriter and distributor of the policy, is a party to threatened or pending lawsuits/arbitration that generally arise from the normal conduct of business. Some of these suits may seek class action status and sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. ING America Equities, Inc. is not involved in any legal proceeding that, in the opinion of management, is likely to have a material adverse effect on its ability to distribute the policy.
Financial Statements |
Financial statements of the variable account and the company are contained in the Statement of Additional Information. To request a free Statement of Additional Information, please contact our Customer Service Center at the address or telephone number on the back of this prospectus.
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APPENDIX A | ||||||||||||||||||
Definition of Life Insurance Factors | ||||||||||||||||||
Guideline Premium Test Factors | ||||||||||||||||||
Attained | Attained | Attained | Attained | Attained | ||||||||||||||
Age | Factor | Age | Factor | Age | Factor | Age | Factor | Age | Factor | |||||||||
0-40 | 2.50 | 48 | 1.97 | 56 | 1.46 | 64 | 1.22 | 72 | 1.11 | |||||||||
41 | 2.43 | 49 | 1.91 | 57 | 1.42 | 65 | 1.20 | 73 | 1.09 | |||||||||
42 | 2.36 | 50 | 1.85 | 58 | 1.38 | 66 | 1.19 | 74 | 1.07 | |||||||||
43 | 2.29 | 51 | 1.78 | 59 | 1.34 | 67 | 1.18 | 75 - 90 | 1.05 | |||||||||
44 | 2.22 | 52 | 1.71 | 60 | 1.30 | 68 | 1.17 | 91 | 1.04 | |||||||||
45 | 2.15 | 53 | 1.64 | 61 | 1.28 | 69 | 1.16 | 92 | 1.03 | |||||||||
46 | 2.09 | 54 | 1.57 | 62 | 1.26 | 70 | 1.15 | 93 | 1.02 | |||||||||
47 | 2.03 | 55 | 1.50 | 63 | 1.24 | 71 | 1.13 | 94 | 1.01 | |||||||||
95 + | 1.00 |
Cash Value Accumulation Test Factors |
The cash value accumulation test factors vary depending on the age and gender of the insured person.
Generally, the cash value accumulation test requires that a policys death benefit must be sufficient so that the policy value does not at any time exceed the net single premium required to fund the policys future benefits. The net single premium for a policy is calculated using the greater of 4.00% or the rates of interest guaranteed in the Guaranteed Interest Division of the policy and the 1980 Commissioners Standard Ordinary Mortality Table and will vary according to the age and gender of the insured person. The factors for the cash value accumulation test are then equal to 1 divided by the net single premium per dollar of paid up whole life insurance for the applicable age and gender.
A-1
APPENDIX B [To be updated by amendment.] |
Funds Available Through the Variable Account
The following chart lists the funds that are currently available through the subaccounts of the variable account, along with each funds investment adviser/subadviser and investment objective. More detailed information about the funds can be found in the current prospectus for each fund.
There is no assurance that the stated investment objectives of any of the funds will be achieved. Shares of the funds will rise and fall in value and you could lose money by allocating premium to the subaccounts that invest 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 1940 Act.
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
| ||
American Growth Fund (Class 2) | Investment Adviser: | Seeks growth of capital. | ||
Capital Research and Management | ||||
Company | ||||
|
|
| ||
American Growth-Income Fund | Investment Adviser: | Seeks capital growth and income over | ||
(Class 2) | Capital Research and Management | time. | ||
Company | ||||
|
|
| ||
American International Fund | Investment Adviser: | Seeks growth of capital over time. | ||
(Class 2) | Capital Research and Management | |||
Company | ||||
|
|
| ||
Fidelity® VIP Contrafund® | Investment Adviser: | Seeks long-term capital appreciation. | ||
Portfolio (Service Class) | Fidelity Management & Research | |||
Company | ||||
|
|
| ||
Fidelity® VIP Equity-Income | Investment Adviser: | Seeks reasonable income. | ||
Portfolio (Service Class) | Fidelity Management & Research | |||
Company | ||||
|
|
| ||
ING AllianceBernstein Mid Cap | Investment Adviser: | Seeks long-term growth of capital. | ||
Growth Portfolio (Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Alliance Capital Management, L.P. | ||||
|
|
| ||
ING BlackRock Large Cap | Investment Adviser: | Seeks long-term growth of capital. | ||
Growth Portfolio (Class I) | Directed Services, LLC | |||
Subadviser: | ||||
BlackRock Investment Management, | ||||
LLC | ||||
|
|
| ||
ING Evergreen Health Sciences | Investment Adviser: | A non-diversified portfolio that seeks | ||
Portfolio (Class I) | Directed Services, LLC | long-term capital growth. | ||
Subadviser: | ||||
Evergreen Investment Management | ||||
Company, LLC | ||||
|
|
| ||
ING Evergreen Omega Portfolio | Investment Adviser: | Seeks long-term capital growth. | ||
(Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Evergreen Investment Management | ||||
Company, LLC | ||||
|
|
|
B-1
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
| ||
ING FMRSM Diversified Mid Cap | Investment Adviser: | Seeks long-term growth of capital. | ||
Portfolio (Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Fidelity Management & Research | ||||
Company | ||||
|
|
| ||
ING FMRSM Large Cap Growth | Investment Adviser: | Seeks growth of capital over the long | ||
Portfolio (Class I) | Directed Services, LLC | term. | ||
Subadviser: | ||||
Fidelity Management & Research | ||||
Company | ||||
|
|
| ||
ING Global Resources Portfolio | Investment Adviser: | A non-diversified portfolio that seeks | ||
(Class I) | Directed Services, LLC | long-term capital appreciation. | ||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
| ||
ING JPMorgan Emerging | Investment Adviser: | Seeks capital appreciation. | ||
Markets Equity Portfolio | Directed Services, LLC | |||
(Class I) | Subadviser: | |||
J.P. Morgan Investment Management, | ||||
Inc. | ||||
|
|
| ||
ING JPMorgan Small Cap Core | Investment Adviser: | Seeks capital growth over the long | ||
Equity Portfolio (Class I) | Directed Services, LLC | term. | ||
Subadviser: | ||||
J.P. Morgan Investment Management, | ||||
Inc. | ||||
|
|
| ||
ING JPMorgan Value | Investment Adviser: | Seeks to provide long-term capital | ||
Opportunities Portfolio (Class I) | Directed Services, LLC | appreciation. | ||
Subadviser: | ||||
J. P. Morgan Investment Management, | ||||
Inc. | ||||
|
|
| ||
ING Julius Baer Foreign | Investment Adviser: | Seeks long-term growth of capital. | ||
Portfolio (Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Julius Baer Investment Management, | ||||
LLC | ||||
|
|
| ||
ING Legg Mason Value Portfolio | Investment Adviser: | A non-diversified portfolio that seeks | ||
(Class I) | Directed Services, LLC | long-term growth of capital. | ||
Subadviser: | ||||
Legg Mason Capital Management, Inc. | ||||
|
|
| ||
ING Lifestyle Aggressive | Investment Adviser: | Seeks growth of capital. | ||
Growth Portfolio (Class I) | ING Investments, LLC | |||
Subadviser: | ||||
Ibbotson Associates and ING | ||||
Investment Management Co. | ||||
|
|
| ||
ING Lifestyle Growth Portfolio | Investment Adviser: | Seeks growth of capital and some | ||
(Class I) | ING Investments, LLC | current income. | ||
Subadviser: | ||||
Ibbotson Associates and ING | ||||
Investment Management Co. | ||||
|
|
|
B-2
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
| ||
ING Lifestyle Moderate Growth | Investment Adviser: | Seeks growth of capital and a low to | ||
Portfolio (Class I) | ING Investments, LLC | moderate level of current income. | ||
Subadviser: | ||||
Ibbotson Associates and ING | ||||
Investment Management Co. | ||||
|
|
| ||
ING Lifestyle Moderate Portfolio | Investment Adviser: | Seeks growth of capital and current | ||
(Class I) | ING Investments, LLC | income. | ||
Subadviser: | ||||
Ibbotson Associates and ING | ||||
Investment Management Co. | ||||
|
|
| ||
ING Limited Maturity Bond | Investment Adviser: | Seeks highest current income consistent | ||
Portfolio (Class S) | Directed Services, LLC | with low risk to principal and liquidity | ||
Subadviser: | and secondarily, seeks to enhance its | |||
ING Investment Management Co. | total return through capital appreciation | |||
when market factors, such as falling | ||||
interest rates and rising bond prices, | ||||
indicate that capital appreciation may | ||||
be available without significant risk to | ||||
principal. | ||||
|
|
| ||
ING Liquid Assets Portfolio | Investment Adviser: | Seeks high level of current income | ||
(Class S) | Directed Services, LLC | consistent with the preservation of | ||
Subadviser: | capital and liquidity. Invests in a | |||
ING Investment Management Co. | portfolio of high-quality, U.S. dollar | |||
denominated short-term debt securities | ||||
that are determined by the Subadviser | ||||
to present minimal credit risks. | ||||
|
|
| ||
ING MarketStyle Growth | Investment Adviser: | Seeks growth of capital and some | ||
Portfolio (Class I) | ING Investments, LLC | current income. | ||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
| ||
ING MarketStyle Moderate | Investment Adviser: | Seeks growth of capital and low to | ||
Growth Portfolio (Class I) | ING Investments, LLC | moderate level of current income. | ||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
| ||
ING MarketStyle Moderate | Investment Adviser: | Seeks growth of capital and current | ||
Portfolio (Class I) | ING Investments, LLC | income. | ||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
| ||
ING Marsico Growth Portfolio | Investment Adviser: | Seeks capital appreciation. | ||
(Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Marsico Capital Management, LLC | ||||
|
|
| ||
ING Marsico International | Investment Adviser: | Seeks long-term growth of capital. | ||
Opportunities Portfolio (Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Marsico Capital Management, LLC | ||||
|
|
|
B-3
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
| ||
ING MFS Total Return Portfolio | Investment Adviser: | Seeks above-average income | ||
(Class I) | Directed Services, LLC | (compared to a portfolio entirely | ||
Subadviser: | invested in equity securities) consistent | |||
Massachusetts Financial Services | with the prudent employment of | |||
Company | capital. Secondarily seeks reasonable | |||
opportunity for growth of capital and | ||||
income. | ||||
|
|
| ||
ING MFS Utilities Portfolio (Class S) | Investment Adviser: | A non-diversified portfolio that seeks | ||
ING Investments, LLC | capital growth and current income. | |||
Subadviser: | ||||
Massachusetts Financial Services | ||||
Company | ||||
|
|
| ||
ING Oppenheimer Main Street | Investment Adviser: | Seeks long-term growth of capital and | ||
Portfolio ® (Class I) | Directed Services, LLC | future income. | ||
Subadviser: | ||||
OppenheimerFunds, Inc. | ||||
|
|
| ||
ING Pioneer Fund Portfolio | Investment Adviser: | Seeks reasonable income and capital | ||
(Class I) | Directed Services, LLC | growth. | ||
Subadviser: | ||||
Pioneer Investment Management, Inc. | ||||
|
|
| ||
ING Pioneer Mid Cap Value | Investment Adviser: | Seeks capital appreciation. | ||
Portfolio (Class I) | Directed Services, LLC | |||
Subadviser: | ||||
Pioneer Investment Management, Inc. | ||||
|
|
| ||
ING Stock Index Portfolio | Investment Adviser: | Seeks total return. | ||
(Class I) | Directed Services, LLC | |||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
| ||
ING T. Rowe Price Capital | Investment Adviser: | Seeks, over the long-term, a high total | ||
Appreciation Portfolio (Class I) | Directed Services, LLC | investment return, consistent with the | ||
Subadviser: | preservation of capital and prudent | |||
T. Rowe Price Associates, Inc. | investment risk. | |||
|
|
| ||
ING T. Rowe Price Equity | Investment Adviser: | Seeks substantial dividend income as | ||
Income Portfolio (Class I) | Directed Services, LLC | well as long-term growth of capital. | ||
Subadviser: | ||||
T. Rowe Price Associates, Inc. | ||||
|
|
| ||
ING UBS U.S. Allocation | Investment Adviser: | Seeks to maximize total return over the | ||
Portfolio (Class S) | Directed Services, LLC | long term by allocating its assets | ||
Subadviser: | among stocks, bonds, short-term | |||
UBS Global Asset Management | instruments and other investments. | |||
(Americas) Inc. | ||||
|
|
|
B-4
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
| ||
ING Van Kampen Growth and | Investment Adviser: | Seeks long-term growth of capital and | ||
Income Portfolio (Class S) | Directed Services, LLC | income. | ||
Subadviser: | ||||
Morgan Stanley Investment | ||||
Management, Inc. (d/b/a Van Kampen) | ||||
|
|
| ||
ING VP Index Plus International | Investment Adviser: | Seeks to outperform the total return | ||
Equity Portfolio (Class S) | ING Investments, LLC | performance of the Morgan Stanley | ||
Subadviser: | Capital International Europe | |||
ING Investment Management Co. | Australasia and Far East® Index | |||
(MSCI EAFE® Index), while | ||||
maintaining a market level of risk. | ||||
|
|
| ||
ING Wells Fargo Small Cap | Investment Adviser: | Seeks long-term capital appreciation. | ||
Disciplined Portfolio (Class S) | Directed Services, LLC | |||
Subadviser: | ||||
Wells Capital Management, Inc. | ||||
|
|
| ||
ING Baron Small Cap Growth | Investment Adviser: | Seeks capital appreciation. | ||
Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
BAMCO, Inc. | ||||
|
|
| ||
ING Columbia Small Cap Value | Investment Adviser: | Seeks long-term growth of capital. | ||
II Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
Columbia Management Advisors, LLC | ||||
|
|
| ||
ING JP Morgan Mid Cap Value | Investment Adviser: | A non-diversified portfolio that seeks | ||
Portfolio (Initial Class) | Directed Services, LLC | growth from capital appreciation. | ||
Subadviser: | ||||
J.P. Morgan Investment Management, | ||||
Inc. | ||||
|
|
| ||
ING Lord Abbett U.S. | Investment Adviser: | Seeks high current income consistent | ||
Government Securities Portfolio | Directed Services, LLC | with reasonable risk. | ||
(Initial Class) | Subadviser: | |||
Lord, Abbett & Co., LLC | ||||
|
|
| ||
ING Neuberger Berman | Investment Adviser: | Seeks capital growth. | ||
Partners Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
Neuberger Berman Management, Inc. | ||||
|
|
| ||
ING Neuberger Berman | Investment Adviser: | Seeks capital growth. | ||
Regency Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
Neuberger Berman Management, Inc. | ||||
|
|
|
B-5
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
| ||
ING Oppenheimer Global | Investment Adviser: | Seeks capital appreciation. | ||
Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
OppenheimerFunds, Inc. | ||||
|
|
| ||
ING Oppenheimer Strategic | Investment Adviser: | Seeks a high level of current income | ||
Income Portfolio (Service Class) | Directed Services, LLC | principally derived from interest on | ||
Subadviser: | debt securities. | |||
OppenheimerFunds, Inc. | ||||
|
|
| ||
ING PIMCO Total Return Portfolio | Investment Adviser: | Seeks maximum total return, consistent | ||
(Initial Class) | Directed Services, LLC | with capital preservation and prudent | ||
Subadviser: | investment management. | |||
Pacific Investment Management | ||||
Company LLC | ||||
|
|
| ||
ING T. Rowe Price Diversified Mid | Investment Adviser: | Seeks long-term capital appreciation. | ||
Cap Growth Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
T. Rowe Price Associates, Inc. | ||||
|
|
| ||
ING UBS U.S. Large Cap Equity | Investment Adviser: | Seeks long-term growth of capital and | ||
Portfolio (Initial Class) | Directed Services, LLC | future income. | ||
Subadviser: | ||||
UBS Global Asset Management | ||||
(Americas) Inc. | ||||
|
|
| ||
ING Van Kampen Comstock | Investment Adviser: | Seeks growth and income. | ||
Portfolio (Initial Class) | Directed Services, LLC | |||
Subadviser: | ||||
Morgan Stanley Investment | ||||
Management, Inc. (d/b/a Van Kampen) | ||||
|
|
| ||
ING Van Kampen Equity and | Investment Adviser: | Seeks total return, consisting of long- | ||
Income Portfolio (Initial Class) | Directed Services, LLC | term capital appreciation and current | ||
Subadviser: | income. | |||
Morgan Stanley Investment | ||||
Management, Inc. (d/b/a Van Kampen) | ||||
|
|
| ||
ING VP Balanced Portfolio | Investment Adviser: | Seeks to maximize investment return, | ||
(Class I) | ING Investments, LLC | consistent with reasonable safety of | ||
Subadviser: | principal, by investing in a diversified | |||
ING Investment Management Co. | portfolio of one or more of the | |||
following asset classes: stocks, bonds | ||||
and cash equivalents, based on the | ||||
judgment of the portfolios | ||||
management, of which of those sectors | ||||
or mix thereof offers the best | ||||
investment prospects. | ||||
|
|
|
B-6
Investment Adviser/ | ||||
Fund Name | Subadviser | Investment Objective | ||
|
|
|
||
ING VP Intermediate Bond | Investment Adviser: | Seeks to maximize total return | ||
Portfolio (Class I) | ING Investments, LLC | consistent with reasonable risk, through | ||
Subadviser: | investment in a diversified portfolio | |||
ING Investment Management Co. | consisting primarily of debt securities. | |||
|
|
|
||
ING VP Index Plus LargeCap | Investment Adviser: | Seeks to outperform the total return | ||
Portfolio (Class I) | ING Investments, LLC | performance of the Standard & Poors | ||
Subadviser: | 500 Composite Index (S&P 500), while | |||
ING Investment Management Co. | maintaining a market level of risk. | |||
|
|
|
||
ING VP Index Plus MidCap | Investment Adviser: | Seeks to outperform the total return | ||
Portfolio (Class I) | ING Investments, LLC | performance of the Standard & Poors | ||
Subadviser: | MidCap 400 Index (S&P 400) while | |||
ING Investment Management Co. | maintaining a market level of risk. | |||
|
|
|
||
ING VP Index Plus SmallCap | Investment Adviser: | Seeks to outperform the total return | ||
Portfolio (Class I) | ING Investments, LLC | performance of the Standard & Poors | ||
Subadviser: | Small Cap 600 Index (S&P 600) while | |||
ING Investment Management Co. | maintaining a market level of risk. | |||
|
|
|
||
ING VP High Yield Bond | Investment Adviser: | Seeks to provide investors with a high | ||
Portfolio (Class I) | ING Investments, LLC | level of current income and total return. | ||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
|
||
ING VP Real Estate Portfolio | Investment Adviser: | A non-diversified portfolio that seeks | ||
(Class S) | ING Investments, LLC | total return. | ||
Subadviser: | ||||
Clarion Real Estate Securities, L.P. | ||||
|
|
|
||
ING VP SmallCap Opportunities | Investment Adviser: | Seeks long-term capital appreciation. | ||
Portfolio (Class I) | ING Investments, LLC | |||
Subadviser: | ||||
ING Investment Management Co. | ||||
|
|
|
||
Neuberger Berman AMT | Investment Adviser: | Seeks long-term growth of capital | ||
Socially Responsive Portfolio® | Neuberger Berman Management, Inc. | by investing primarily in securities of | ||
(Class I) | Subadviser: | companies that meet the Funds | ||
Neuberger Berman, LLC | financial criteria and social policy. | |||
|
|
|
B-7
APPENDIX C |
INFORMATION REGARDING CLOSED SUBACCOUNTS
Effective April 28, 2006, the subaccounts that invest in the following funds were closed to new investment:
Effective April 30, 2007, the subaccount which invests in the following fund was closed to new investment:
Policy owners who have policy value allocated to one or more of the subaccounts that correspond to these funds may leave their policy value in those subaccounts, but future allocations and transfers into those subaccounts are prohibited. If your most recent premium allocation instructions includes a subaccount that corresponds to one of these funds, premium received that would have been allocated to a subaccount corresponding to one of these funds will be allocated on a pro rata basis among all the other available subaccounts in which your policy value is allocated. If there are no other such subaccounts, you must provide us with alternative allocation instructions or the premium payment will be returned to you. Your failure to provide us with alternative allocation instructions and our return of any premium payment may result in your policy entering the 61 day grace period and/or your policy lapsing without value.
1 | Prior to November 6, 2006, this fund was known as the ING Mercury Large Cap Value Portfolio. |
2 | Prior to August 7, 2006, this fund was known as the ING MFS Mid Cap Growth Portfolio. |
3 | Prior to April 30, 2007, this fund was known as the ING Van Kampen Equity Growth Portfolio. |
C-1
MORE INFORMATION IS AVAILABLE
If you would like more information about us, the variable account or the policy, the following documents are available free upon request:
Page | ||
General Information and History | 2 | |
Performance Reporting and Advertising | 2 | |
Experts | 3 | |
Financial Statements | 4 | |
Financial Statements of Security Life Separate Account L1 | 1 | |
Statutory Basis Financial Statements of Security Life of Denver Insurance Company | C1 |
To request a free SAI or personalized illustration of policy benefits or to make other inquiries about the policy, please contact us at our:
Customer Service Center P.O. Box 5065 Minot, ND 58702-5065 1-877-253-5050 www.ingservicecenter.com |
Additional information about us, the variable account or the policy (including the SAI) can be reviewed and copied from the SECs Internet website (http://www.sec.gov) or at the SECs Public Reference Branch in Washington, DC. Copies of this additional information may also be obtained, upon payment of a duplicating fee, by writing the SECs Public Reference Branch at 100 F Street, NE, Room 1580, Washington, DC 20549. More information about operation of the SECs Public Reference Branch can be obtained by calling 202-551-8090. When looking for information regarding the policy offered through this prospectus, you may find it useful to use the number assigned to the registration statement under the 1933 Act. This number is 333-117329.
1940 Act File No. 811-08292 1933 Act file No. 333-117329 |
ASSET ACCUMULATOR |
A FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY issued by Security Life of Denver Insurance Company and its Security Life Separate Account L1 M Funds Supplement Dated April 30, 2007, to the Prospectus Dated April 30, 2007 This Supplement adds certain information to your Prospectus, dated April 30, 2007. Please read it carefully and keep it with your Prospectus for future reference. ______________________________________________________________________ |
Investment Portfolios. Four additional funds are currently available through your policy: Brandes International Equity Fund; Business Opportunity Value Fund; Frontier Capital Appreciation Fund; and Turner Core Growth Fund. For a more complete description of these funds' investments, risks, costs and expenses, please see the accompanying prospectus for each fund.
Your policy's prospectus and the fund prospectuses can be requested by calling our Customer Service Center toll-free at 1-877-253-5050. These prospectuses contain information about your policy's investment options and the various fund fees and charges. Please read your policy's prospectus and the fund prospectuses carefully before investing.
* * * * * * * * * * * * * * * * * |
The following information is added to the Funds Available Through the Variable Account section beginning on page 16 of the prospectus:
* * * * * * * * * * * * * * * * * |
142344 | Page 1 of 2 | April 2007 |
The following information is added to Appendix B of the prospectus: [To be updated by amendment.]
Fund Name | Investment Adviser/Subadviser | Investment Objective | ||
|
|
| ||
M Fund Brandes International | Investment Adviser: | Seeks to provide long-term capital | ||
Equity Fund | M Financial Investment Advisers, | appreciation. | ||
Inc. | ||||
Sub-Adviser: | ||||
Brandes Investment Partners, LLC | ||||
| ||||
M Fund Business Opportunity | Investment Adviser: | Seeks to provide long-term capital | ||
Value Fund | M Financial Investment Advisers, | appreciation. | ||
Inc. | ||||
Sub-Adviser: | ||||
Iridian Asset Management LLC | ||||
|
|
| ||
M Fund Frontier Capital | Investment Adviser: | Seeks to provide maximum capital | ||
Appreciation Fund | M Financial Investment Advisers, | appreciation. | ||
Inc. | ||||
Sub-Adviser: | ||||
Frontier Capital Management | ||||
Company, LLC | ||||
|
|
| ||
M Fund Turner Core Growth | Investment Adviser: | Seeks to provide long-term capital | ||
Fund | M Financial Investment Advisers, | appreciation. | ||
Inc. | ||||
Sub-Adviser: | ||||
Turner Investment Partners, Inc. | ||||
|
142344 | Page 2 of 2 | April 2007 |
PART B |
INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION |
SECURITY LIFE SEPARATE ACCOUNT L1 OF SECURITY LIFE OF DENVER INSURANCE COMPANY ASSET ACCUMULATOR Variable Universal Life Insurance Policy Statement of Additional Information dated April 30, 2007. |
This Statement of Additional Information is not a prospectus and should be read in conjunction with the current Asset Accumulator prospectus dated April 30, 2007. The policy offered in connection with the prospectus is a flexible premium variable universal life insurance policy funded through the Security Life Separate Account L1.
A free prospectus is available upon request by contacting the Security Life of Denver Insurance Companys Customer Service Center at P.O. Box 5065, Minot, ND 58702-5065, by calling 1-877-253-5050 or by accessing the SECs web site at http://www.sec.gov.
Read the prospectus before you invest. Unless otherwise indicated, terms used in this Statement of Additional Information shall have the same meaning as in the prospectus.
TABLE OF CONTENTS |
Page | ||
General Information and History | 2 | |
Performance Reporting and Advertising | 2 | |
Experts | 4 | |
Financial Statements | 4 | |
Financial Statements of Security Life Separate Account L1 | 1 | |
Statutory-Basis Financial Statements of Security Life of Denver Insurance Company | C1 |
GENERAL INFORMATION AND HISTORY
Security Life of Denver Insurance Company (the company, we, us, our) issues the policy described in the prospectus and is responsible for providing each policys insurance benefits. We are a stock life insurance company organized in 1929 and incorporated under the laws of the State of Colorado and an indirect, wholly owned subsidiary of ING Groep N.V. (ING), a global financial institution active in the fields of insurance, banking and asset management. ING is headquartered in Amsterdam, The Netherlands. We are engaged in the business of issuing insurance policies. Our headquarters is at 1290 Broadway, Denver, Colorado 80203-5699.
We established the Security Life Separate Account L1 (the variable account) on November 3, 1993, as one of our separate accounts under the laws of the State of Colorado for the purpose of funding variable life insurance policies issued by us. The variable account is registered with the Securities and Exchange Commission (SEC) as a unit investment trust under the Investment Company Act of 1940, as amended. Premium payments may be allocated to one or more of the available sub-accounts of the variable account. Each sub-account invests in shares of a corresponding fund at net asset value. We may make additions to, deletions from or substitutions of available funds as permitted by law and subject to the conditions of the policy.
Other than the policy owner fees and charges described in the prospectus, all expenses incurred in the operations of the variable account are borne by the company. We do, however, receive compensation for certain recordkeeping, administration or other services from the funds or affiliates of the funds available through the policies. See Fees and Charges in the prospectus.
The company maintains custody of the assets of the variable account. As custodian, the company holds cash balances for the variable account pending investment in the funds or distribution. The funds in whose shares the assets of the sub-accounts of the variable account are invested each have custodians, as discussed in the respective fund prospectuses.
PERFORMANCE REPORTING AND ADVERTISING
Information regarding the past, or historical, performance of the sub-accounts of the variable account and the funds available for investment through the sub-accounts of the variable account may appear in advertisements, sales literature or reports to policy owners or prospective purchasers. SUCH PERFORMANCE INFORMATION FOR THE SUB-ACCOUNTS WILL REFLECT THE DEDUCTION OF ALL FUND FEES AND CHARGES, INCLUDING INVESTMENT MANAGEMENT FEES, DISTRIBUTION (12B-1) FEES AND OTHER EXPENSES BUT WILL NOT REFLECT DEDUCTIONS FOR ANY POLICY FEES AND CHARGES. IF THE POLICYS PREMIUM EXPENSE, COST OF INSURANCE, MORTALITY AND EXPENSE RISK, POLICY AND ADMINISTRATIVE CHARGES AND THE OTHER TRANSACTION, PERIODIC OR OPTIONAL BENEFITS FEES AND CHARGES WERE DEDUCTED, THE PERFORMANCE SHOWN WOULD BE SIGNIFICANTLY LOWER.
With respect to performance reporting it is important to remember that past performance does not guarantee future results. Current performance may be higher or lower than the performance shown and actual investment returns and principal values will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost.
2
Performance history of the sub-accounts of the variable account and the corresponding funds is measured by comparing the value at the beginning of the period to the value at the end of the period. Performance is usually calculated for periods of one month, three months, year-to-date, one year, three years, five years, ten years (if the fund has been in existence for these periods) and since the inception date of the fund (if the fund has been in existence for less than ten years). We may provide performance information showing average annual total returns for periods prior to the date a sub-account commenced operation. We will calculate such performance information based on the assumption that the sub-accounts were in existence for the same periods as those indicated for the funds, with the level of charges at the variable account level that were in effect at the inception of the sub-accounts. Performance information will be specific to the class of fund shares offered through the policy, however, for periods prior to the date a class of fund shares commenced operations, performance information may be based on a different class of shares of the same fund. In this case, performance for the periods prior to the date a class of fund shares commenced operations will be adjusted by the fund fees and expenses associated with the class of fund shares offered through the policy.
We may compare performance of the sub-accounts and/or the funds as reported from time to time in advertisements and sales literature to other variable life insurance issuers in general; to the performance of particular types of variable life insurance policies investing in mutual funds; or to investment series of mutual funds with investment objectives similar to each of the sub-accounts, whose performance is reported by Lipper Analytical Services, Inc. (Lipper) and Morningstar. Inc. (Morningstar) or reported by other series, companies, individuals or other industry or financial publications of general interest, such as Forbes, Money, The Wall Street Journal, Business Week, Barrons, Kiplingers and Fortune. Lipper and Morningstar are independent services that monitor and rank the performances of variable life insurance issuers in each of the major categories of investment objectives on an industry-wide basis.
Lippers and Morningstars rankings include variable annuity issuers as well as variable life insurance issuers. The performance analysis prepared by Lipper and Morningstar ranks such issuers on the basis of total return, assuming reinvestment of distributions, but does not take sales charges, redemption fees or certain expense deductions at the separate account level into consideration. We may also compare the performance of each sub-account in advertising and sales literature to the Standard & Poors Index of 500 common stocks and the Dow Jones Industrials, which are widely used measures of stock market performance. We may also compare the performance of each sub-account to other widely recognized indices. Unmanaged indices may assume the reinvestment of dividends, but typically do not reflect any deduction for the expense of operating or managing an investment portfolio.
To help you better understand how your policys death benefits, policy value and surrender value will vary over time under different sets of assumptions, we encourage you to obtain a personalized illustration. Personalized illustrations will assume deductions for fund expenses and policy and variable account charges. We will base these illustrations on the age and risk classification of the insured person and other factors such as the amount of insurance coverage, death benefit option, premiums and rates of return (within limits) you specify. These personalized illustrations will be based on either a hypothetical investment return of the funds of 0% and other percentages not to exceed 12% or on the actual historical experience of the funds as if the sub-accounts had been in existence and a policy issued for the same periods as those indicated for the funds. Subject to regulatory approval, personalized illustrations may be based upon a weighted average of fund expenses rather than an arithmetic average. A personalized illustration is available upon request by contacting our Customer Service Center at P.O. Box 5065, Minot, ND 58702-5065 or by calling 1-877-253-5050.
3
EXPERTS [To be updated by amendment.] |
The statements of assets and liabilities of Security Life Separate Account L1 as of December 31, 2006 and the related statements 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, and the statutory-basis financial statements of Security Life of Denver Insurance Company as of December 31, 2006 and 2005, and for the years then ended, included in this Statement of Additional Information, have been audited by
_______________________, independent registered public accounting firm, as set forth in their reports thereon included elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
FINANCIAL STATEMENTS [To be updated by amendment.] |
The financial statements of the variable account reflect the operations of the variable account as of and for the year ended December 31, 2006, and have been audited by
____________________, independent registered public accounting firm.
The statutory-basis financial statements of the company as of December 31, 2006 and 2005, and for the years then ended have been audited by Ernst & Young LLP, independent registered public accounting firm. The financial statements of the company should be distinguished from the financial statements of the variable account and should be considered only as bearing upon the ability of the company to meet its obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the variable account. The statutory-basis financial statements of the company as of December 31, 2006 and 2005, and for the years then ended have been prepared on the basis of statutory accounting practices prescribed or permitted by the State of Colorado Division of Insurance.
The primary business address of ________________________ is _______________________________________.
[Financial Statements will be added by amendment.] |
4
333-117329 | April 2007 |
Part C OTHER INFORMATION |
Item 26 | Exhibits | |||
(a) | (1) | Resolution of the Executive Committee of the Board of Directors of Security Life of Denver Insurance | ||
Company ("Security Life of Denver") authorizing the establishment of the Registrant. (Incorporated | ||||
herein by reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April | ||||
27, 1998; File No. 33-74190.) | ||||
(b) | Not Applicable. | |||
(c) | (1) | Security Life of Denver Distribution Agreement. (Incorporated herein by reference to Post-Effective | ||
Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||
Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33-74190.) | ||||
(2) | First Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated | |||
herein by reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 9, | ||||
2002; File No. 33-74190.) | ||||
(3) | Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated | |||
herein by reference to Pre-Effective Amendment No. 2 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on May 10, | ||||
1999; File No. 333-72753.) | ||||
(4) | Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated | |||
herein by reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on January | ||||
30, 2001; File No. 333-50278.) | ||||
(5) | Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated | |||
herein by reference to the Post-Effective Amendment No. 14 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April | ||||
19, 2001; File No. 33-74190.) | ||||
(6) | Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated | |||
herein by reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 9, | ||||
2002; File No. 33-74190.) | ||||
(7) | Specimen Broker/Dealer Supervisory and Selling Agreement for Variable Contracts with Compensation | |||
Schedule. (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Form S-6 | ||||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||
Account L1, filed on March 2, 1998; File No. 33-74190.) | ||||
(8) | Broker/Dealer Supervisory and Selling Agreement for Variable Contracts with Paine Webber | |||
Incorporated. (Incorporated herein by reference to Post-Effective Amendment No. 4 to the Form S-6 | ||||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||
Account L1, filed on April 30, 1997; File No. 33-88148.) | ||||
(9) | Compensation Schedule. (Incorporated herein by reference to the Post-Effective Amendment No. 2 to | |||
the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||||
Life Separate Account L1, filed on April 10, 2002; File No. 333-50278.) | ||||
(10) | Commission Schedule for Policies. (Incorporated herein by reference to the Pre-Effective Amendment | |||
No. 1 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its | ||||
Security Life Separate Account L1, filed on January 30, 2001; File No. 333-50278.) | ||||
(11) | Specimen Master Sales and Supervisory Agreement with Compensation Schedule. (Incorporated herein | |||
by reference to the Post-Effective Amendment No. 12 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April | ||||
25, 2000; File No. 33-74190.) | ||||
(12) | Administrative Services Agreement between Security Life of Denver and Financial Administrative | |||
Services Corporation. (Incorporated herein by reference to Post-Effective Amendment No. 7 to the Form | ||||
S-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||
Account L1, filed on April 27, 1998; File No. 33-74190.) |
(13) | Amendment to Administrative Services Agreement between Security Life of Denver and Financial | |||
Administrative Services Corporation. (Incorporated herein by reference to Post-Effective Amendment | ||||
No. 7 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its | ||||
Security Life Separate Account L1, filed on April 27, 1998; File No. 33-74190.) | ||||
(d) | (1) | Specimen Variable Universal Life Insurance Policy (Form No. (2514(VUL)-9/04). (Incorporated by | ||
reference to Initial Registration Statement on Form N-6, File No. 333-117329, as filed on July 1, 2004.) | ||||
(2) | Adjustable Term Insurance Rider (Form No. R2026-9/04). (Incorporated by reference to Initial | |||
Registration Statement on Form N-6, File No. 333-117329, as filed on July 1, 2004.) | ||||
(3) | Waiver of Cost of Insurance Rider (Form No. R-1505). (Incorporated herein by reference to the Pre- | |||
Effective Amendment No. 1 to the Form S-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on January 30, 2001; File No. 333- | ||||
50278.) | ||||
(4) | Waiver of Specified Premium Total Disability Rider (Form No. R-1506). (Incorporated herein by | |||
reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security Life | ||||
of Denver Insurance Company and its Security Life Separate Account L1, filed on January 30, 2001; | ||||
File No. 333-50278.) | ||||
(5) | Accelerated Death Benefit Rider. (Incorporated herein by reference to the Pre-Effective Amendment No. | |||
1 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||||
Life Separate Account L1, filed on January 30, 2001; File No. 333-50278.) | ||||
(6) | Guaranteed Death Benefit Rider (Form No. R2025-4/04). (Incorporated by reference to Initial | |||
Registration Statement on Form N-6, File No. 333-117329, as filed on July 1, 2004.) | ||||
(e) | (1) | Specimen Variable Life Insurance Application (Form No. Q-2006-9/97). (To be used on or before May | ||
1, 1998.) (Incorporated herein by reference to the Post-Effective Amendment No. 5 to the Form S-6 | ||||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||
Account L1, filed on October 29, 1997; File No. 33-74190.) | ||||
(2) | Variable Life Application Insert. (Incorporated herein by reference to the Pre-Effective Amendment No. | |||
1 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||||
Life Separate Account L1, filed on January 30, 2001; File No. 333-50278.) | ||||
(3) | Investment Feature Selection Form (Form No. V-166-00 Rev. 5/1/03). (Incorporated herein by reference | |||
to the Post-Effective Amendment No. 5 to the Form N-6 Registration Statement of Security Life of | ||||
Denver Insurance Company and its Security Life Separate Account L1, filed on April 14, 2003; File No. | ||||
333-50278.) | ||||
(4) | Investment Feature Selection Form (Form No. V-175-01 Rev. 5/1/03). (Incorporated herein by reference | |||
to the Post-Effective Amendment No. 5 to the Form N-6 Registration Statement of Security Life of | ||||
Denver Insurance Company and its Security Life Separate Account L1, filed on April 14, 2003; File No. | ||||
333-50278.) | ||||
(5) | Specimen Application for Life Insurance Fixed and Variable Products (Form No. 110945). (Incorporated | |||
herein by reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 9, | ||||
2002; File No. 33-74190.) | ||||
(6) | Form of Overloan Lapse Protection Rider | |||
(f) | (1) | Security Life of Denver's Restated Articles of Incorporation. (Incorporated herein by reference to Post- | ||
Effective Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33- | ||||
74190.) | ||||
(2) | Amendments to Articles of Incorporation through June 12, 1987. (Incorporated herein by reference to | |||
Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33- | ||||
74190.) | ||||
(3) | Amendments to Articles of Incorporation through November 12, 2001. (Incorporated herein by reference | |||
to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of Security Life of | ||||
Denver Insurance Company and its Security Life Separate Account L1, filed on April 9, 2002; File No. | ||||
33-74190.) |
(4) | Security Life of Denver's By-Laws. (Incorporated herein by reference to Post-Effective Amendment No. | |||||
7 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||||||
Life Separate Account L1, filed on April 27, 1998; File No. 33-74190.) | ||||||
(5) | Bylaws of Security Life of Denver Insurance Company (Restated with Amendments through September | |||||
30, 1997). (Incorporated herein by reference to Post-Effective Amendment No. 5 to the Form S-6 | ||||||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||||
Account L1, filed on October 29, 1997; File No. 33-74190.) | ||||||
(g) | Not Applicable. | |||||
(h) | (1) | (a) | Participation Agreement by and among AIM Variable Insurance Funds, Inc., Life Insurance | |||
Company, on Behalf of Itself and its Separate Accounts and Name of Underwriter of Variable | ||||||
Contracts and Policies. (Incorporated herein by reference to Post-Effective Amendment No. 6 to the | ||||||
Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||||||
Life Separate Account L1, filed on March 2, 1998; File No. 33-74190.) | ||||||
(b) | Amendment No. 1 to Participation Agreement among AIM Variable Insurance Funds, Inc., Security | |||||
Life of Denver Insurance Company and ING America Equities, Inc. (Incorporated herein by | ||||||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||||||
April 9, 2002; File No. 33-74190.) | ||||||
(c) | Amendment No. 2 to Participation Agreement among AIM Variable Insurance Funds, Inc., Security | |||||
Life of Denver Insurance Company and ING America Equities, Inc. (Incorporated herein by | ||||||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||||||
April 9, 2002; File No. 33-74190.) | ||||||
(d) | Amendment No. 3 to Participation Agreement among AIM Variable Insurance Funds, Inc., Security | |||||
Life of Denver Insurance Company and ING America Equities, Inc. (Incorporated herein by | ||||||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||||||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||||||
1998; File No. 33-74190.) | ||||||
(e) | Amendment No. 4 to Participation Agreement among AIM Variable Insurance Funds, Inc., Security | |||||
Life of Denver Insurance Company and ING America Equities, Inc. (Incorporated herein by | ||||||
reference to the Post-Effective Amendment No. 1 to the Form S-6 Registration Statement of | ||||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||||||
February 29, 2000; File No. 333-72753.) | ||||||
(f) | Amendment No. 5 to Participation Agreement among AIM Variable Insurance Funds, Inc., Security | |||||
Life of Denver Insurance Company and ING America Equities, Inc. (Incorporated herein by | ||||||
reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security | ||||||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on January 30, | ||||||
2001; File No. 333-50278.) | ||||||
(g) | Amendment No. 6 to Participation Agreement among AIM Variable Insurance Funds, Inc., Security | |||||
Life of Denver Insurance Company and ING America Equities, Inc. (Incorporated herein by | ||||||
reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security | ||||||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on December | ||||||
19, 2001; File No. 333-73464.) | ||||||
(h) | Expense Allocation Agreement between A I M Advisors, Inc., AIM Distributors, Inc. and Security | |||||
Life of Denver. (Incorporated herein by reference to the Post-Effective Amendment No. 11 to the | ||||||
Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||||||
Life Separate Account L1, filed on April 29, 1999; File No. 33-74190.) | ||||||
(i) | Amendment No. 1 to Expense Allocation Agreement between AIM Advisors, Inc., A I M | |||||
Distributors, Inc. and Security Life of Denver. (Incorporated herein by reference to the Pre-Effective | ||||||
Amendment No. 1 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||||
Company and its Security Life Separate Account L1, filed on December 19, 2001; File No. 333- | ||||||
73464.) | ||||||
(2) | (a) | Sales Agreement by and among The Alger American Fund, Fred Alger Management, Inc., and | ||||
Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective | ||||||
Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||||
Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33-74190.) |
(b) | First Amendment to Sales Agreement by and among The Alger American Fund, Fred Alger | |||
Management, Inc., Security Life of Denver Insurance Company. (Incorporated herein by reference | ||||
to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security Life of | ||||
Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, 1998; File | ||||
No. 33-74190.) | ||||
(c) | Addendum to Alger Sales Agreement. (Incorporated herein by reference to Post-Effective | |||
Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||
Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33-74190.) | ||||
(d) | Amendment to Sales Agreement by and among The Alger American Fund, Fred Alger Management, | |||
Inc., Security Life of Denver Insurance Company. (Incorporated herein by reference to the Post- | ||||
Effective Amendment No. 15 to the Form S-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on April 9, 2002; File No. 33- | ||||
74190.) | ||||
(e) | Service Agreement between Fred Alger Management, Inc. and Security Life of Denver Insurance | |||
Company. (Incorporated herein by reference to Post-Effective Amendment No. 7 to the Form S-6 | ||||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||
Account L1, filed on April 27, 1998; File No. 33-74190.) | ||||
(3) | (a) | Participation Agreement among Golden American Life Insurance Company, ReliaStar Life | ||
Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver | ||||
Insurance Company, Southland Life Insurance Company, ING Life Insurance and Annuity | ||||
Company, ING Insurance Company of America, American Funds Insurance Series and Capital | ||||
Research and Management Company. (Incorporated by reference to the Pre-Effective Amendment | ||||
No. 1 to the Registration Statement on Form N-6, File No. 333-105319, as filed on July 17, 2003.) | ||||
(b) | Business Agreement among Golden American Life Insurance Company, ReliaStar Life Insurance | |||
Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance | ||||
Company, Southland Life Insurance Company, ING Life Insurance and Annuity Company, ING | ||||
Insurance Company of America, ING America Equities, Inc., Directed Services, Inc., American | ||||
Funds Distributors, Inc. and Capital Research and Management Company. (Incorporated by | ||||
reference to the Pre-Effective Amendment No. 1 to the Registration Statement on Form N-6, File | ||||
No. 333-105319, as filed on July 17, 2003.) | ||||
(4) | (a) | Participation Agreement among Variable Insurance Products Fund, Fidelity Distributors | ||
Corporation and Security Life of Denver Insurance Company. (Incorporated herein by reference to | ||||
Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33- | ||||
74190.) | ||||
(b) | First Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |||
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||||
1998; File No. 33-74190.) | ||||
(c) | Second Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |||
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||||
1998; File No. 33-74190.) | ||||
(d) | Third Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |||
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||||
reference to the Post-Effective Amendment No. 11 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||||
April 29, 1999; File No. 33-74190.) | ||||
(e) | Fourth Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |||
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||||
April 9, 2002; File No. 33-74190.) |
(f) | Fifth Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||
1998; File No. 33-74190.) | ||
(g) | Sixth Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) | ||
(h) | Seventh Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 12 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 25, 2000; File No. 33-74190.) | ||
(i) | Eighth Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 13 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
October 13, 2000; File No. 33-74190.) | ||
(j) | Ninth Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 14 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 19, 2001; File No. 33-74190.) | ||
(k) | Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Form S-6 Initial Registration Statement of Security Life of Denver Insurance | ||
Company and its Security Life Separate Account L1, filed on November 15, 2001; File No. 333- | ||
73464.) | ||
(l) | Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on December | ||
19, 2001; File No. 333-73464.) | ||
(m) | Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) | ||
(n) | Amendment to Participation Agreement among Variable Insurance Products Fund, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 9 to the Form N-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
February 27, 2004; File No. 333-50278.) | ||
(o) | Participation Agreement among Variable Insurance Products Fund II, Fidelity Distributors | |
Corporation and Security Life of Denver Insurance Company. (Incorporated herein by reference to | ||
Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver | ||
Insurance Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33- | ||
74190.) | ||
(p) | First Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||
1998; File No. 33-74190.) |
(q) | Second Amendment to Participation Agreement among Variable Insurance Products Fund II, | |
Fidelity Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated | ||
herein by reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 27, 1998; File No. 33-74190.) | ||
(r) | Third Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 11 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 29, 1999; File No. 33-74190.) | ||
(s) | Fourth Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) | ||
(t) | Fifth Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||
1998; File No. 33-74190.) | ||
(u) | Sixth Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) | ||
(v) | Seventh Amendment to Participation Agreement among Variable Insurance Products Fund II, | |
Fidelity Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated | ||
herein by reference to the Post-Effective Amendment No. 13 to the Form S-6 Registration Statement | ||
of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
October 13, 2000; File No. 33-74190.) | ||
(w) | Eighth Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 14 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 19, 2001; File No. 33-74190.) | ||
(x) | Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Form S-6 Initial Registration Statement of Security Life of Denver Insurance | ||
Company and its Security Life Separate Account L1, filed on November 15, 2001; File No. 333- | ||
73464.) | ||
(y) | Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on December | ||
19, 2001; File No. 333-73464.) | ||
(z) | Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) | ||
(aa) | Amendment to Participation Agreement among Variable Insurance Products Fund II, Fidelity | |
Distributors Corporation and Security Life of Denver Insurance Company. (Incorporated herein by | ||
reference to the Post-Effective Amendment No. 9 to the Form N-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
February 27, 2004; File No. 333-50278.) |
(bb) | Service Agreement between Fidelity Investments Institutional Operations Company, Inc. and | |||
Security Life of Denver Insurance Company. (Incorporated herein by reference to the Post-Effective | ||||
Amendment No. 15 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||
Company and its Security Life Separate Account L1, filed on April 9, 2002; File No. 33-74190.) | ||||
(5) | (a) | Participation Agreement among Security Life of Denver Insurance Company, ING VP Bond | ||
Portfolio and ING Funds Distributor, Inc. (Incorporated herein by reference to the Post-Effective | ||||
Amendment No. 3 to the Form N-6 Registration Statement of Security Life of Denver Insurance | ||||
Company and its Security Life Separate Account L1, filed on February 7, 2003; File No. 333- | ||||
50278.) | ||||
(6) | (a) | Participation Agreement among Security Life of Denver Insurance Company, The GCG Trust and | ||
Directed Services, Inc. (Incorporated herein by reference to the Post-Effective Amendment No. 15 | ||||
to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and its | ||||
Security Life Separate Account L1, filed on April 9, 2002; File No. 33-74190.) | ||||
(b) | Amendment to Participation Agreement among Security Life of Denver Insurance Company, The | |||
GCG Trust and Directed Services, Inc. (Incorporated herein by reference to the Pre-Effective | ||||
Amendment No. 1 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||
Company and its Security Life Separate Account L1, filed on January 30, 2001; File No. 333- | ||||
50278.) | ||||
(c) | Form of Amendment to Participation Agreement among Security Life of Denver Insurance | |||
Company, The GCG Trust and Directed Services, Inc. (Incorporated herein by reference to the Post- | ||||
Effective Amendment No. 14 to the Form S-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on April 19, 2001; File No. 33- | ||||
74190.) | ||||
(d) | Administrative and Shareholder Service Agreement between Directed Services, Inc. and Security | |||
Life of Denver Insurance Company. (Incorporated herein by reference to the Post-Effective | ||||
Amendment No. 14 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||||
Company and its Security Life Separate Account L1, filed on April 19, 2001; File No. 33-74190.) | ||||
(7) | (a) | Participation Agreement among Security Life of Denver Insurance Company, ING Variable | ||
Portfolios, Inc. and ING Funds Distributor, Inc. (Incorporated herein by reference to the Post- | ||||
Effective Amendment No. 3 to the Form N-6 Registration Statement of Security Life of Denver | ||||
Insurance Company and its Security Life Separate Account L1, filed on February 7, 2003; File No. | ||||
333-50278.) | ||||
(8) | (a) | Participation Agreement among Security Life of Denver Insurance Company, ING Partners, Inc., | ||
ING Life Insurance and Annuity Company, and ING Financial Advisers, LLC. (Incorporated herein | ||||
by reference to the Post-Effective Amendment No. 3 to the Form N-6 Registration Statement of | ||||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||||
February 7, 2003; File No. 333-50278.) | ||||
(b) | Amendment to Participation Agreement among ING Partners, Inc., ING Life Insurance and Annuity | |||
Company, and ING Financial Advisers, LLC and Security Life of Denver Insurance Company. | ||||
(Incorporated herein by reference to the Post-Effective Amendment No. 5 to the Form N-6 | ||||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||||
Account L1, filed on April 14, 2003; File No. 333-50278.) | ||||
(c) | Amendment to Participation Agreement among ING Partners, Inc., ING Life Insurance and Annuity | |||
Company, and ING Financial Advisers, LLC and Security Life of Denver Insurance Company, | ||||
dated November 1, 2004. (Incorporated herein by reference to the Post-Effective Amendment No. | ||||
16 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its | ||||
Security Life Separate Account L1, filed on April 12, 2006; File No. 333-50278.) | ||||
(d) | Amendment to Participation Agreement among ING Partners, Inc., ING Life Insurance and Annuity | |||
Company, and ING Financial Advisers, LLC and Security Life of Denver Insurance Company, | ||||
dated April 29, 2005. (Incorporated herein by reference to the Post-Effective Amendment No. 16 to | ||||
the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its | ||||
Security Life Separate Account L1, filed on April 12, 2006; File No. 333-50278.) | ||||
(e) | Amendment to Participation Agreement among ING Partners, Inc., ING Life Insurance and Annuity | |||
Company, and ING Financial Advisers, LLC and Security Life of Denver Insurance Company, | ||||
dated August 31, 2005. (Incorporated herein by reference to the Post-Effective Amendment No. 16 | ||||
to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its | ||||
Security Life Separate Account L1, filed on April 12, 2006; File No. 333-50278.) |
(f) | Form of Amendment to Participation Agreement among ING Partners, Inc., ING Life Insurance and | |
Annuity Company, and ING Financial Advisers, LLC and Security Life of Denver Insurance | ||
Company, dated April 28, 2006. (Incorporated herein by reference to the Post-Effective Amendment | ||
No. 16 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and | ||
its Security Life Separate Account L1, filed on April 12, 2006; File No. 333-50278.) | ||
(g) | Amendment to Participation Agreement among ING Partners, Inc., ING Life Insurance and Annuity | |
Company, and ING Financial Advisers, LLC and Security Life of Denver Insurance Company, | ||
dated November 1, 2004. (Incorporated herein by reference to the Post-Effective Amendment No. 16 to | ||
(h) | Service Agreement with Investment Advisor between ING Life Insurance and Annuity Company | |
and Security Life of Denver Insurance Company. (Incorporated herein by reference to the Post- | ||
Effective Amendment No. 3 to the Form N-6 Registration Statement of Security Life of Denver | ||
Insurance Company and its Security Life Separate Account L1, filed on February 7, 2003; File No. | ||
333-50278.) | ||
(9) (a) | Participation Agreement among Security Life of Denver Insurance Company, Pilgrim Variable | |
Products Trust and ING Pilgrim Investments, LLC. (Incorporated herein by reference to the Post- | ||
Effective Amendment No. 15 to the Form S-6 Registration Statement of Security Life of Denver | ||
Insurance Company and its Security Life Separate Account L1, filed on April 9, 2002; File No. 33- | ||
74190.) | ||
(b) | Amendment to Participation Agreement among Security Life of Denver Insurance Company, | |
Pilgrim Variable Products Trust and ING Pilgrim Securities, Inc. (Incorporated herein by reference | ||
to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security Life of | ||
Denver Insurance Company and its Security Life Separate Account L1, filed on December 19, 2001; | ||
File No. 333-73464.) | ||
(c) | Amendment to Participation Agreement among ING Variable Products Trust, ING Funds | |
Distributor, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference | ||
to the Post-Effective Amendment No. 3 to the Form N-6 Registration Statement of Security Life of | ||
Denver Insurance Company and its Security Life Separate Account L1, filed on February 7, 2003; | ||
File No. 333-50278.) | ||
(d) | Administrative and Shareholder Service Agreement between ING Pilgrim Group, LLC and Security | |
Life of Denver Insurance Company. (Incorporated herein by reference to the Pre-Effective | ||
Amendment No. 1 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||
Company and its Security Life Separate Account L1, filed on December 19, 2001; File No. 333- | ||
73464.) | ||
(e) | Amendment to Administrative and Shareholder Services Agreement between Security Life of | |
Denver Insurance Company and ING Funds Services, LLC. (Incorporated herein by reference to the | ||
Post-Effective Amendment No. 3 to the Form N-6 Registration Statement of Security Life of Denver | ||
Insurance Company and its Security Life Separate Account L1, filed on February 7, 2003; File No. | ||
333-50278.) | ||
(10) (a) | Participation Agreement among INVESCO Variable Investment Funds, Inc., INVESCO Funds | |
Group, Inc., and Security Life of Denver Insurance Company. (Incorporated herein by reference to | ||
Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security Life of Denver | ||
Insurance Company and its Security Life Separate Account L1, filed on April 27, 1998; File No. 33- | ||
74190.) | ||
(b) | First Amendment to Participation Agreement among Security Life of Denver Insurance Company, | |
INVESCO Variable Investment Funds, Inc. and INVESCO Funds Group, Inc. (Incorporated herein | ||
by reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||
1998; File No. 33-74190.) | ||
(c) | Second Amendment to Participation Agreement among Security Life of Denver Insurance | |
Company, INVESCO Variable Investment Funds, Inc. and INVESCO Funds Group, Inc. | ||
(Incorporated herein by reference to the Post-Effective Amendment No. 15 to the Form S-6 | ||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||
Account L1, filed on April 9, 2002; File No. 33-74190.) | ||
(d) | Third Amendment to Participation Agreement among Security Life of Denver Insurance Company, | |
INVESCO Variable Investment Funds, Inc. and INVESCO Funds Group, Inc. (Incorporated herein | ||
by reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) |
(e) | Fourth Amendment to Participation Agreement among Security Life of Denver Insurance Company, | |
INVESCO Investment Funds, Inc. and INVESCO Funds Group, Inc. (Incorporated herein by | ||
reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||
1998; File No. 33-74190.) | ||
(f) | Fifth Amendment to Participation Agreement among Security Life of Denver Insurance Company, | |
INVESCO Variable Investment Funds, Inc. and INVESCO Funds Group, Inc. (Incorporated herein | ||
by reference to the Post-Effective Amendment No. 1 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
February 29, 2000; File No. 333-72753.) | ||
(g) | Sixth Amendment to Participation Agreement among Security Life of Denver Insurance Company, | |
INVESCO Variable Investment Funds, Inc. and INVESCO Funds Group, Inc. (Incorporated herein | ||
by reference to the Post-Effective Amendment No. 15 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 9, 2002; File No. 33-74190.) | ||
(h) | Seventh Amendment to Participation Agreement among Security Life of Denver Insurance | |
Company, INVESCO Variable Investment Funds, Inc. and INVESCO Funds Group, Inc. | ||
(Incorporated herein by reference to the Pre-Effective Amendment No. 1 to the Form S-6 | ||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||
Account L1, filed on December 19, 2001; File No. 333-73464.) | ||
(i) | Service Agreement between INVESCO Funds Group, Inc. and Security Life of Denver Insurance | |
Company. (Incorporated herein by reference to the Post-Effective Amendment No. 11 to the Form | ||
S-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life | ||
Separate Account L1, filed on April 29, 1999; File No. 33-74190.) | ||
(j) | First Amendment to Service Agreement between Security Life of Denver Insurance Company and | |
INVESCO Funds Group, Inc. (Incorporated herein by reference to the Post-Effective Amendment | ||
No. 15 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and | ||
its Security Life Separate Account L1, filed on April 9, 2002; File No. 33-74190.) | ||
(11) (a) | Fund Participation Agreement between Janus Aspen Series and Security Life of Denver Insurance | |
Company. (Incorporated herein by reference to the Post-Effective Amendment No. 13 to the Form | ||
S-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life | ||
Separate Account L1, filed on October 13, 2000; File No. 33-74190.) | ||
(b) | Amendment to Janus Aspen Series Fund Participation Agreement. (Incorporated herein by reference | |
to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement of Security Life of | ||
Denver Insurance Company and its Security Life Separate Account L1, filed on December 19, 2001; | ||
File No. 333-73464.) | ||
(c) | Distribution and Shareholder Services Agreement between Janus Distributors, Inc. and Security Life | |
of Denver Insurance Company. (Incorporated herein by reference to the Post-Effective Amendment | ||
No. 15 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and | ||
its Security Life Separate Account L1, filed on April 9, 2002; File No. 33-74190.) | ||
(d) | Letter of Agreement between Security Life of Denver and Janus Capital Corporation. (Incorporated | |
herein by reference to the Pre-Effective Amendment No. 1 to the Form S-6 Registration Statement | ||
of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
December 19, 2001; File No. 333-73464.) | ||
(12) (a) | Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and Security Life of | |
Denver Insurance Company. (Incorporated herein by reference to the Post-Effective Amendment | ||
No. 14 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and | ||
its Security Life Separate Account L1, filed on April 19, 2001; File No. 33-74190.) | ||
(b) | Amendment to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and | |
Security Life of Denver Insurance Company. (Incorporated herein by reference to the Post-Effective | ||
Amendment No. 14 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||
Company and its Security Life Separate Account L1, filed on April 19, 2001; File No. 33-74190.) | ||
(c) | Amendment to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and | |
Security Life of Denver Insurance Company. (Incorporated herein by reference to the Post-Effective | ||
Amendment No. 15 to the Form S-6 Registration Statement of Security Life of Denver Insurance | ||
Company and its Security Life Separate Account L1, filed on April 9, 2002; File No. 33-74190.) |
(d) | Amendment to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and | |
Security Life of Denver Insurance Company. (Incorporated herein by reference to the Post-Effective | ||
Amendment No. 5 to the Form N-6 Registration Statement of Security Life of Denver Insurance | ||
Company and its Security Life Separate Account L1, filed on April 14, 2003; File No. 333-50278.) | ||
(13) (a) | Assignment and Modification Agreement between Neuberger & Berman Advisers Management | |
Trust, Neuberger & Berman Management Incorporated, Neuberger & Berman Advisers | ||
Management Trust, Advisers Managers Trust and Security Life of Denver Insurance Company. | ||
(Incorporated herein by reference to Post-Effective Amendment No. 6 to the Form S-6 Registration | ||
Statement of Security Life of Denver Insurance Company and its Security Life Separate Account | ||
L1, filed on March 2, 1998; File No. 33-74190.) | ||
(b) | Addendum to Fund Participation Agreement among Security Life of Denver Insurance Company, | |
Neuberger Berman Advisers Management Trust, Advisers Managers Trust and Neuberger Berman | ||
Management Inc. (Incorporated herein by reference to the Post-Effective Amendment No. 13 to the | ||
Form S-6 Registration Statement of Security Life of Denver Insurance Company and its Security | ||
Life Separate Account L1, filed on October 13, 2000; File No. 33-74190.) | ||
(c) | Service Agreement between Neuberger & Berman Management Incorporated and Security Life of | |
Denver Insurance Company. (Incorporated herein by reference to the Post-Effective Amendment | ||
No. 11 to the Form S-6 Registration Statement of Security Life of Denver Insurance Company and | ||
its Security Life Separate Account L1, filed on April 29, 1999; File No. 33-74190.) | ||
(d) | Sales Agreement by and among Neuberger & Berman Advisers Management Trust, Neuberger & | |
Berman Management Incorporated, and Security Life of Denver Insurance Company. (Incorporated | ||
herein by reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of | ||
Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 27, 1998; File No. 33-74190.) | ||
(14) (a) | Participation Agreement among Security Life of Denver Insurance Company, Pioneer Variable | |
Contracts Trust, Pioneer Investment Management, Inc. and Pioneer Funds Distributor, Inc. | ||
(Incorporated herein by reference to the Post-Effective Amendment No. 3 to the Form N-6 | ||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||
Account L1, filed on February 7, 2003; File No. 333-50278.) | ||
(15) (a) | Participation Agreement among Security Life of Denver Insurance Company and Southland Life | |
Insurance Company, Putnam Variable Trust and Putnam Retail Management, Inc. (Incorporated | ||
herein by reference to the Post-Effective Amendment No. 1 to the Form S-6 Registration Statement | ||
of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on | ||
April 19, 2001; File No. 333-50278.) | ||
(b) | Amendment to Participation Agreement among Security Life of Denver Insurance Company and | |
Southland Life Insurance Company, Putnam Variable Trust and Putnam Retail Management, L.P. | ||
(Incorporated herein by reference to the Post-Effective Amendment No. 3 to the Form N-6 | ||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||
Account L1, filed on February 7, 2003; File No. 333-50278.) | ||
(16) (a) | Participation Agreement between Van Eck Investment Trust and the Trust's investment adviser, Van | |
Eck Associates Corporation, and Security Life of Denver Insurance Company. (Incorporated herein | ||
by reference to Post-Effective Amendment No. 7 to the Form S-6 Registration Statement of Security | ||
Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 27, | ||
1998; File No. 33-74190.) | ||
(b) | First Amendment to Fund Participation Agreement between Security Life of Denver, Van Eck | |
Investment Trust and Van Eck Associates Corporation. (Incorporated herein by reference to Post- | ||
Effective Amendment No. 6 to the Form S-6 Registration Statement of Security Life of Denver | ||
Insurance Company and its Security Life Separate Account L1, filed on March 2, 1998; File No. 33- | ||
74190.) | ||
(c) | Second Amendment to Fund Participation Agreement between Security Life of Denver, Van Eck | |
Worldwide Insurance Trust and Van Eck Associates Corporation. (Incorporated herein by reference | ||
to Post-Effective Amendment No. 6 to the Form S-6 Registration Statement of Security Life of | ||
Denver Insurance Company and its Security Life Separate Account L1, filed on March 2, 1998; File | ||
No. 33-74190.) | ||
(d) | Side Letter between Van Eck Worldwide Insurance Trust and Security Life of Denver. | |
(Incorporated herein by reference to the Post-Effective Amendment No. 11 to the Form S-6 | ||
Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate | ||
Account L1, filed on April 29, 1999; File No. 33-74190.) |
(i) | Not Applicable. | |
(j) | Not Applicable. | |
(k) | Opinion and Consent of Counsel. [To be added by amendment.] | |
(l) | Not Applicable. | |
(m) | Not Applicable. | |
(n) | Consent of Independent Registered Public Accounting Firm. [To be added by amendment.] | |
(o) | All financial statements are included in the Statement of Additional Information, as indicated therein. | |
(p) | Not Applicable. | |
(q) | Not Applicable. | |
(r) | Powers of Attorney. |
Item 27 | Directors and Officers of the Depositor | |||||
Name and Principal Business Address | Positions and Offices with Depositor | |||||
|
|
|
||||
Donald W. Britton, 5780 Powers Ferry Road, NW, | President | |||||
Atlanta, GA 30327 | ||||||
Thomas J. McInerney, 151 Farmington Avenue, | Director and Chairman | |||||
Hartford, CT 06156 | ||||||
David A. Wheat, 5780 Powers Ferry Road, NW, | Director, Executive Vice President and Chief Financial | |||||
Atlanta, GA 30327 | Officer | |||||
Robert W. Crispin, 230 Park Ave 13th Floor, New York, NY | Director | |||||
10169 | ||||||
Kathleen A. Murphy, 151 Farmington Avenue, Hartford, | Director | |||||
CT 06156 | ||||||
Catherine H. Smith, 151 Farmington Avenue, Hartford, | Director and Senior Vice President | |||||
CT 06156 | ||||||
Boyd G. Combs, 5780 Powers Ferry Road, NW, Atlanta, | Senior Vice President, Tax | |||||
GA 30327 | ||||||
James R. Gelder, 20 Washington Avenue South, | Senior Vice President | |||||
Minneapolis, MN 55401 | ||||||
David S. Pendergrass, 5780 Powers Ferry Road, NW, | Senior Vice President and Treasurer | |||||
Atlanta, GA 30327 | ||||||
Steven T. Pierson, 5780 Powers Ferry Road, NW, | Senior Vice President and Chief Accounting Officer | |||||
Atlanta, GA 30327 | ||||||
Stephen J. Preston, 1475 Dunwoody Drive, West | Senior Vice President | |||||
Chester, PA 19380 | ||||||
Harry N. Stout, 1475 Dunwoody Drive, West Chester, | Senior Vice President | |||||
PA 19380 | ||||||
Carol S. Stern, 601 13th Street NW, Suite 550 N, | Vice President and Chief Compliance Officer | |||||
Washington DC 20005. | ||||||
Kimberly M. Curley, 1290 Broadway, Denver, CO | Vice President and Illustration Actuary | |||||
80203 | ||||||
Beth G. Shanker, 1290 Broadway, Denver, CO 80203 | Vice President, Compliance | |||||
Pamela S. Anson, 2001 21st Avenue NW, Minot, ND | Vice President | |||||
58703 | ||||||
Chad M. Eslinger, 2001 21st Avenue NW, Minot, ND | Vice President | |||||
58703 | ||||||
Deborah C. Hancock, 1290 Broadway, Denver, CO | Vice President | |||||
80203 | ||||||
Laurie J. Rasanen, 2001 21st Avenue NW, Minot, ND | Vice President | |||||
58703 | ||||||
Laurie M. Tillinghast, 151 Farmington Avenue, | Vice President | |||||
Hartford, CT 06156 | ||||||
Joy M. Benner, 20 Washington Avenue South, | Secretary | |||||
Minneapolis, MN 55401 | ||||||
Item 28 | Persons Controlled by or Under Common Control with the Depositor or the Registrant | |||||
ING GROEP | ||||||
U.S. FINANCIAL SERVICES | ||||||
|
|
|||||
ING GROEP N.V. (The Netherlands) | ||||||
No FEIN-Non-Insurer | ||||||
|
|
|
||||
ING VERZEKERINGEN N.V. (The Netherlands) | ||||||
No FEIN Non-Insurer | ||||||
|
|
|
||||
ING INSURANCE INTERNATIONAL B.V. (The Netherlands) | ||||||
No FEIN Non-Insurer EIN# 98-0159264 | ||||||
|
|
|
||||
ING AMERICA INSURANCE HOLDINGS, INC. | Nederlandse Reassurantie | 8 | ||||
(Delaware) Non-Insurer 52-1222820 | Groep N.V. (The Netherlands) | |||||
No FEIN Non-Insurer | ||||||
|
|
|
ING North America Insurance Corporation | NRG America Holding Company | |||||
Non-Insurer (Delaware) 52-1317217 | (Delaware) 23-2074221 Non-Insurer | |||||
|
|
|||||
ING Payroll Management, Inc. | Philadelphia Reinsurance Corporation | |||||
Non-Insurer (Delaware) 52-2197204 | (Pennsylvania) 23-1620930 (Insurer) | |||||
NAIC# 12319 | ||||||
|
|
|||||
ING Risk Management (Bermuda) Limited Non-Insurer | NRG America Management Corporation | |||||
Non-US Taxpayer - No FEIN Assigned | (Pennsylvania) 23-1667532 Non-Insurer | |||||
|
|
|||||
Lion II Custom Investments LLC (Delaware) | ||||||
Non-Insurer 52-1222820 | ||||||
|
||||||
12/31/06 Final (2) | Lion Connecticut Holdings Inc. | |||||
(Connecticut) Non-Insurer 02-0488491 | ||||||
|
||||||
Arrowhead, Ltd. (Non-Insurer) | ||||||
(Bermuda) | ||||||
|
||||||
Page 1 | ING Brokers Network, LLC (Delaware) | |||||
Non-Insurer 52-2215129 | ||||||
|
||||||
ING Insurance Agency, Inc. | ||||||
(California) Non-Insurer 84-1490645 | ||||||
|
|
|||||
ING Insurance Agency, Inc. of | ||||||
Massachusetts Non-Insurer 04-3514565 | ||||||
|
||||||
ING Insurance Agency, Inc. of Texas | ||||||
Non-Insurer 74-2946531 | ||||||
|
||||||
Multi-Financial Group, LLC | ||||||
Non - Insurer 58-1827264 (Georgia) | ||||||
|
|
|||||
IFG Insurance Agency of Oklahoma, Inc. | 1 | |||||
Non-Insurer (Oklahoma) 73-1514662 | ||||||
|
||||||
IFG Insurance Services of Texas, Inc. | 1 | |||||
Non-Insurer (Texas) 75-2473468 | ||||||
|
||||||
Multi-Financial Securities Corporation | ||||||
(Colorado) Non-Insurer 84-0858799 | ||||||
|
|
|||||
MFSC Insurance Agency of Massachusetts, | ||||||
Inc. (Massachusetts) Non-Insurer 04-3311732 | ||||||
|
||||||
MFSC Insurance Services, Inc. | ||||||
Non-Insurer (California) 94-3145434 | ||||||
|
|
|||||
MFSC Insurance Agency of Nevada, | ||||||
Inc. (Nevada) Non-Insurer 84-1482296 | ||||||
|
|
|||||
IB Holdings LLC Non-Insurer | ||||||
(Virginia) 41-1983894 | ||||||
|
|
|||||
The New Providence Ins. Co. LTD | ||||||
(Cayman Islands) Non-Insurer 98-0161114 | ||||||
|
||||||
ING Capital Corporation, LLC | ||||||
(Delaware) Non-Insurer 86-1020892 | ||||||
|
||||||
ING Funds Services, LLC | ||||||
(Delaware) Non-Insurer 86-1020893 | ||||||
|
|
|||||
ING Funds Distributor, LLC | ||||||
(Delaware) Non-Insurer 03-0485744 | ||||||
|
|
|||||
ING Pilgrim Funding, Inc. | ||||||
(Delaware) Non-Insurer 06-1501895 | ||||||
|
||||||
ING Investments, LLC | ||||||
(Arizona) Non-Insurer 03-0402099 | ||||||
|
|
|||||
ING Financial Partners, Inc. | ||||||
(Minnesota) Non-Insurer 41-0945505 | ||||||
|
||||||
12/31/06 Final (2) | ING International Insurance Holdings, Inc. | |||||
Non-Insurer (Connecticut) 06-1028458 | ||||||
|
||||||
ALICA Holdings, Inc. Non-Insurer | 3 | |||||
20-5299942 (Connecticut) | ||||||
|
||||||
Page 2 | ILICA Inc. | 4 | ||||
06-1067464 (Connecticut) Insurer | ||||||
|
|
|||||
ING Life Insurance Company Limited | ||||||
(Republic of China) Insurer | ||||||
|
|
|||||
ING International Nominee Holdings, Inc. | ||||||
06-0952776 (Connecticut) Non-Insurer | ||||||
|
||||||
AII I, LLC | ||||||
Non-Insurer (Connecticut) No tax id | ||||||
|
||||||
AII 2 LLC | ||||||
Non-Insurer (Connecticut) No tax id | ||||||
|
AII 3 LLC | ||||
Non-Insurer (Connecticut) No tax id | ||||
|
||||
AII 4 LLC | ||||
Non-Insurer (Connecticut) No tax id | ||||
|
||||
ING Investment Management LLC (Delaware) | ||||
Non-Insurer 58-2361003 | ||||
|
||||
ING Investment Management Co. | ||||
(Connecticut) Non-Insurer 06-0888148 | ||||
|
|
|||
ING Investment Management | ||||
(Bermuda) Holdings Limited Non-Insurer | ||||
|
|
|||
ING Investment Trust Co. | ||||
Non-Insurer (Connecticut) 06-1440627 | ||||
|
|
|||
ING Investment Management Alternative Assets LLC | ||||
Non Insurer (Delaware) 13-4038444 | ||||
|
||||
ING Alternative Asset Management LLC | ||||
Non -Insurer (Delaware) 13-3863170 | ||||
|
||||
Furman Selz Investments LLC | ||||
Non-Insurer (Delaware) 13-3863171 | ||||
|
||||
Furman Selz (SBIC) Investments LLC | ||||
Non-Insurer (Delaware) 13-3863604 | ||||
|
||||
Furman Selz Investment II LLC | 5 | |||
Non-Insurer (Delaware) 13-3929304 | ||||
|
||||
12/31/06 Final (2) | Furman Selz Investments III LLC | 6 | ||
Non-Insurer (Delaware) 13-4127836 | ||||
|
Furman Selz Management (BVI) Limited | ||||
Non-Insurer (British Virgin Islands) | ||||
|
||||
ING Equity Holdings Inc. | ||||
Non-Insurer 13-3778184 | ||||
|
||||
Page 3 | ING Ghent Asset Management LLC | |||
Non-Insurer 13-4003969 | ||||
|
||||
ING Investment Management Services LLC | ||||
Non-Insurer 13-3856628 | ||||
|
||||
ING Multi-Strategies (LUX) S.A. | ||||
Non-Insurer (Luxembourg) | ||||
|
||||
ING Pomona Holdings LLC | ||||
Non-Insurer 13-4152011 | ||||
|
||||
Pomona G. P. Holdings LLC | ||||
Non-Insurer (Delaware) 13-4150600 | ||||
|
||||
Pomona Management LLC | ||||
Non-Insurer (Delaware) 13-4197000 | ||||
|
||||
ING Life Insurance and Annuity Company | ||||
(Connecticut) Insurer 71-0294708 NAIC 86509 | ||||
|
||||
Directed Services LLC | ||||
(Delaware) Non-Insurer 14-1984144 | ||||
|
||||
ING Financial Advisers, LLC | ||||
(Delaware) Non-Insurer 06-1375177 | ||||
|
||||
Northfield Windsor LLC | ||||
(Connecticut) Non-Insurer 71-0294708 | ||||
|
||||
ING National Trust Non-Insurer | ||||
41-1966125 | ||||
|
||||
ING Re Underwriters, Inc. | ||||
(Tennessee) Non-Insurer 62-1505070 | ||||
|
||||
ING Retail Holding Company, Inc. | ||||
(Connecticut) Non-Insurer 06-1527984 | ||||
|
||||
ING Insurance Services Holding Company, Inc. | ||||
(Connecticut) Non-Insurer 06-1475329 | ||||
|
|
|||
ING Insurance Services, Inc. | ||||
(Connecticut) Non-Insurer 06-1465377 | ||||
|
|
|||
ING Insurance Services of Alabama, Inc. | ||||
(Alabama) Non-Insurer 72-1374488 | ||||
|
|
|||
Aetna Insurance Agency of Texas, Inc. | 1 | |||
(Texas) Non-Insurer 74-2817537 | ||||
|
|
|||
ING Insurance Services of Massachusetts, Inc. | ||||
(Massachusetts) Non-Insurer 04-3370454 | ||||
|
||||
12/31/06 Final (2) | FNI International, Inc. | |||
(California) Non-Insurer 33-0048439 | ||||
|
Financial Network Investment Corporation | ||||||
Honolulu, Inc. (Hawaii) Non-Insurer 52-2195734 | ||||||
|
|
|||||
FN Insurance Services, Inc. | ||||||
(California) Non-Insurer 33-0232417 | ||||||
|
|
|||||
Page 4 | FN Insurance Services HI, Inc. | |||||
(Hawaii) Non-Insurer 91-2041262 | ||||||
|
|
|||||
FN Insurance Agency of New Jersey, Inc. | ||||||
(New Jersey) Non-Insurer 22-3693416 | ||||||
|
|
|||||
FN Insurance Services of Nevada, Inc. | ||||||
(Nevada) Non-Insurer 88-0319907 | ||||||
|
|
|||||
FN Insurance Agency of Kansas, Inc. | ||||||
(Kansas) Non-Insurer 43-1878293 | ||||||
|
|
|||||
Financial Network Investment Corporation | ||||||
Non-Insurer (California) 95-3845382 | ||||||
|
|
|||||
Financial Network Investment Corporation | ||||||
of Hawaii (Hawaii) Non-Insurer 99-0298275 | ||||||
|
|
|||||
Financial Network Investment Corporation | ||||||
of Hilo (Hawaii) Non-Insurer 99-0335018 | ||||||
|
|
|||||
Financial Network Investment Corporation | ||||||
of Kauai (Hawaii) Non-Insurer 99-0335020 | ||||||
|
|
|||||
Financial Network Investment Corporation | ||||||
of Puerto Rico (Puerto Rico) Non-Insurer 52-2173808 | ||||||
|
||||||
ING Services Holding Company, Inc. | ||||||
(Connecticut) Non-Insurer 06-1527982 | ||||||
|
|
|||||
Systematized Benefits Administrators, Inc. | ||||||
(Connecticut) Non-Insurer 06-0889923 | ||||||
|
||||||
ING USA Annuity and Life Insurance Company (Iowa) | ||||||
Insurer NAIC #80942 41-0991508 | ||||||
|
|
|||||
Draft Funding II LLC | ||||||
(Delaware) Non-Insurer | ||||||
|
|
|||||
PFP Holdings, L.P. (Georgia) | 2 | |||||
Non-Insurer 58-1665825 | ||||||
|
|
|||||
Powers Ferry Properties Investments, Inc. | ||||||
(Delaware) Non-Insurer | ||||||
|
|
|||||
PrimeVest Financial Services, Inc. | ||||||
(Minnesota) Non-Insurer 41-1483314 | ||||||
|
|
|||||
Bancnorth Investment Group, Inc. | ||||||
(Minnesota) Non-Insurer 41-1735462 | ||||||
|
||||||
Branson Insurance Agency, Inc. | ||||||
(Massachusetts) Non-Insurer 04-3116141 | ||||||
|
||||||
Compulife, Inc. Non-Insurer | ||||||
(Virginia) 54-1252522 | ||||||
|
|
|||||
12/31/06 Final (2) | Compulife Agency, Inc. | |||||
Non-Insurer (Ohio) 34-1689987 | ||||||
|
|
|
||||
Compulife Insurance Agency of Massachusetts, | ||||||
Inc. (Massachusetts) 54-2004346 Non-Insurer | ||||||
|
|
|||||
Compulife Investor Services, Inc. | ||||||
Non-Insurer (Virginia) 54-1439322 | ||||||
|
||||||
Page 5 | Guaranty Brokerage Services, Inc. | |||||
(California) Non-Insurer 68-0165121 | ||||||
|
||||||
PrimeVest Insurance Agency of Alabama, Inc. | ||||||
(Alabama) Non-Insurer 41-1786871 | ||||||
|
||||||
Primevest Insurance Agency of Nevada, Inc. | ||||||
(Nevada) Non-Insurer 61-1426263 | ||||||
|
||||||
PrimeVest Insurance Agency of New Mexico, Inc. | ||||||
(New Mexico) Non-Insurer 85-0422391 | ||||||
|
||||||
PrimeVest Insurance Agency of Ohio, Inc. | ||||||
(Ohio) Non-Insurer 31-1388789 | ||||||
|
||||||
PrimeVest Insurance Agency of Oklahoma, Inc. | 1 | |||||
(Oklahoma) Non-Insurer 73-1455177 | ||||||
|
||||||
PrimeVest Insurance Agency of Texas, Inc. | 1 | |||||
(Texas) Non-Insurer 74-2703790 | ||||||
|
||||||
PrimeVest Insurance Agency of Wyoming, Inc. | ||||||
(Wyoming) Non-Insurer 41-1996927 | ||||||
|
||||||
ReliaStar Investment Research, Inc. | ||||||
|
|
(Minnesota) Non-Insurer 41-1412933 | ||||
|
||||
ReliaStar Life Insurance Company Insurer | ||||
(Minnesota) 41-0451140 NAIC 67105 | ||||
|
||||
ING Re (UK) Limited | ||||
(United Kingdom) Insurer | ||||
|
||||
NWNL Benefits, LLC Non-Insurer | ||||
(Minnesota) 41-2022146 | ||||
|
||||
ReliaStar Life Insurance Company of New York | ||||
(New York) Insurer 53-0242530 NAIC 61360 | ||||
|
||||
Superior Vision Services, Inc. Non-Insurer | 7 | |||
(Delaware) 13-3741352 | ||||
|
|
|||
Superior Vision Insurance, Inc. 86-0757439 | ||||
(Arizona) Reinsurer NAIC 60188 | ||||
|
|
|||
Wisperingwind I, LLC | ||||
(South Carolina) Non-Insurer 14-1981620 | ||||
|
||||
Wisperingwind II, LLC | ||||
(South Carolina) Non-Insurer 32-0185577 | ||||
|
||||
ReliaStar Payroll Agent, Inc. Non-Insurer | ||||
(Minnesota) 41-1887594 | ||||
|
||||
Successful Money Management Seminars, Inc. | ||||
(Oregon) Non-Insurer 93-0791146 | ||||
|
||||
12/31/06 Final (2) | Security Life Assignment Corp. (Colorado) | |||
84-1437826 Non-Insurer | ||||
|
||||
Security Life of Denver Insurance Company (Colorado) | ||||
Insurer 84-0499703 NAIC #68713 | ||||
|
||||
Page 6 | First Secured Mortgage Deposit Corporation (Colorado) | |||
Non-Insurer 84-1086427 | ||||
|
||||
ING America Equities, Inc. (Colorado) | ||||
Non-Insurer 84-1251388 | ||||
|
||||
Midwestern United Life Insurance Company (Indiana) | ||||
Insurer NAIC #66109 35-0838945 | ||||
|
||||
Draft Funding LLC | ||||
Non-Insurer (Delaware) | ||||
|
||||
Wisperingwind III, LLC | ||||
(South Carolina) Non-Insurer 35-2282787 | ||||
|
||||
Security Life of Denver International Limited | ||||
Insurer 98-0138339 (Bermuda) | ||||
|
||||
Lion Custom Investments LLC (Delaware) | ||||
98-0138339 Non-Insurer | ||||
|
||||
UC Mortgage Corp. (Delaware) 72-1329746 | ||||
Non-Insurer | ||||
|
1 | Company owned by individual pursuant to state law, Shareholder agreement with parent company. |
2 | ING USA Annuity and Life Insurance Company is a 70% partner in this real estate management partnership. Nationale-Nederlanden Interest II, B.V. is a 29% partner, and NNUS Realty Corporation is a 1% partner. |
3 | ALICA Holdings, Inc. is 80% owned by ING International Insurance Holdings, Inc. and 20% owned by ING Insurance International B.V. |
4 | ING International Insurance Holdings, Inc. owns 100% of the voting shares of ILICA Inc. and ALICA Holdings, Inc. owns 100% of the non-voting shares of ILICA, Inc.. |
5 | Furman Selz Investments II LLC owned 94% by ING Investment Management Alternative Assets LLC. |
6 | Furman Selz Investments III LLC owned 8.5% by ING Investment Management Alternative Assets LLC. |
7 | ReliaStar Life owns approx. 44% of common stock of Superior Vision Services, Inc. |
8 | At the request of the Pennsylvania Insurance Department, Nederlandse Reassurantie Groep N.V. is being included in the organizational chart of ING Groep N.V. NRG Group has been in runoff since 1993. It is distinctly separate from ING America Insurance Holdings, Inc. and its active subsidiaries. |
Item 29 Indemnification |
Under its Bylaws, Sections 1 through 8, Security Life of Denver Insurance Company ("Security Life") indemnifies, to the full extent permitted by the laws of the State of Colorado, any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of the corporation), by reason of the fact that he or she is or was a director, member of a committee appointed by the Board of Directors, officer, salaried employee, or fiduciary of Security Life or is or was serving at the request of Security Life (whether or not as a representative of Security Life) as a director, officer, employee, or fiduciary of another corporation, partnership, joint venture, trust, or other enterprise, against expenses (including attorney fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to in the best interest of the corporation, or at least not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of Security Life pursuant to such provisions of the bylaws or statutes or otherwise, Security Life has been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in said Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Security Life of expenses incurred or paid by a director or officer or controlling person of Security Life in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person of Security Life in connection with the securities being registered, Security Life 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 or not such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
A corporation may procure indemnification insurance on behalf of an individual who is or was a director of the corporation. Consistent with the laws of the State of Colorado, ING America Insurance Holdings, Inc. maintains a Professional Liability umbrella insurance policy issued by an international insurer. The policy covers ING America Insurance Holdings, Inc. and any company in which ING America Insurance Holdings, Inc. has a controlling interest of 50% or more. This would encompass the principal underwriter as well as the depositor. Additionally, the parent company of ING America Insurance Holdings, Inc., ING Groep N.V., maintains excess umbrella coverage with limits in excess of $125,000,000. The policy provides for the following types of coverage: errors and omissions/professional liability, directors and officers, employment practices, fiduciary and fidelity.
Additionally, Section 13 of the Security Life Distribution Agreement with ING America Equities, Inc. (INGAE) generally provides that each party will indemnify and hold harmless the officers, directors and employees of the other party (and the variable account with respect to indemnity by INGAE) against any expenses (including legal expenses), losses, claims, damages, or liabilities arising out of or based on certain claims or circumstances in connection with the offer or sale of the policies. Under this agreement neither party is entitled to indemnity if the expenses (including legal expenses), losses, claims, damages, or liabilities resulted from their own willful misfeasance, bad faith, negligence, misconduct or wrongful act.
Item 30 | Principal Underwriters | |||||||||||||
(a) | Other Activity. ING America Equities, Inc., the principal underwriter for the policies, is also the principal | |||||||||||||
underwriter for policies issued by ReliaStar Life Insurance Company of New York and ReliaStar Life | ||||||||||||||
Insurance Company. | ||||||||||||||
(b) | Management of ING America Equities, Inc. | |||||||||||||
Name and Principal Business Address | Positions and Offices with Underwriter | |||||||||||||
|
|
|
|
| ||||||||||
Nathan E. Eshelman, 1290 Broadway, Denver, CO | Director, President and Chief Executive Officer | |||||||||||||
80203 | ||||||||||||||
Pamela S. Anson, 2001 21st Avenue NW, Minot, ND | Director and Vice President | |||||||||||||
58703 | ||||||||||||||
Daniel P. Mulheran, Sr., 20 Washington Avenue South, | Director | |||||||||||||
Minneapolis, MN 55401 | ||||||||||||||
Anita F. Woods, 5780 Powers Ferry Road, NW, Atlanta, | Chief Financial Officer | |||||||||||||
GA 30327 | ||||||||||||||
Beth G. Shanker, 1290 Broadway, Denver, CO 80203 | Chief Compliance Officer | |||||||||||||
Dawn M. Peck, 5780 Powers Ferry Road, NW, Atlanta, | Vice President, Assistant Treasurer and Assistant | |||||||||||||
GA 30327 | Secretary | |||||||||||||
David S. Pendergrass, 5780 Powers Ferry Road, NW, | Vice President and Treasurer | |||||||||||||
Atlanta, GA 30327 | ||||||||||||||
Laurie J. Rasanen, 2001 21st Avenue NW, Minot, ND | Vice President | |||||||||||||
58703 | ||||||||||||||
Deborah C. Hancock, 1290 Broadway, Denver, CO | Assistant Vice President | |||||||||||||
80203 | ||||||||||||||
Glenn Black, 5780 Powers Ferry Road, NW, Atlanta, | Tax Officer | |||||||||||||
GA 30327 | ||||||||||||||
Terry Owens, 5780 Powers Ferry Road, NW, Atlanta, | Tax Officer | |||||||||||||
GA 30327 | ||||||||||||||
James Taylor, 5780 Powers Ferry Road, NW, Atlanta, | Tax Officer | |||||||||||||
GA 30327 | ||||||||||||||
Joy M. Benner, 20 Washington Avenue South, | Secretary | |||||||||||||
Minneapolis, MN 55401 | ||||||||||||||
Diana R. Cavender, 20 Washington Avenue South, | Assistant Secretary | |||||||||||||
Minneapolis, MN 55401 | ||||||||||||||
Randall K. Price, 20 Washington Avenue South, | Assistant Secretary | |||||||||||||
Minneapolis, MN 55401 | ||||||||||||||
Edwina P. J. Steffer, 20 Washington Avenue South, | Assistant Secretary | |||||||||||||
Minneapolis, MN 55401 | ||||||||||||||
Susan M. Vega, 20 Washington Avenue South, | Assistant Secretary | |||||||||||||
Minneapolis, MN 55401 | ||||||||||||||
(c) | Compensation From the Registrant. | |||||||||||||
(1) | (2) | (3) | (4) | (5) | ||||||||||
2006 Net | Compensation on | |||||||||||||
Underwriting | Events Occasioning | |||||||||||||
Name of Principal | Discounts and | the Deduction of a | Brokerage | |||||||||||
Underwriter | Commissions | Deferred Sales Load | Commissions | Other Compensation* | ||||||||||
|
|
|
|
|
| |||||||||
ING America | ||||||||||||||
Equities, Inc. | $30,168,287 | |||||||||||||
* | Compensation shown in column 5 includes: marketing allowances. |
Item 31 | Location of Accounts and Records | |
Accounts and records are maintained by Security Life of Denver Insurance Company at 1290 Broadway, | ||
Denver, CO 80203-5699 and by ING Americas Finance Shared Services, an affiliate, at 5780 Powers Ferry | ||
Road, NW, Atlanta, GA 30327. | ||
Item 32 | Management Services | |
None | ||
Item 33 | Fee Representations | |
Security Life of Denver Insurance Company represents that the fees and charges deducted under the variable life | ||
insurance policy described in this registration statement, in the aggregate, are reasonable in relation to the services | ||
rendered, expenses expected to be incurred, and the risks assumed by Security Life of Denver Insurance Company | ||
under the policies. Security Life of Denver Insurance Company bases this representation on its assessment of such | ||
factors as the nature and extent of such services, expenses and risks, the need for the Security Life of Denver | ||
Insurance Company to earn a profit and the range of such fees and charges within the insurance industry. |
SIGNATURES |
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Security Life Separate Account L1, has duly caused this Post-Effective Amendment No. 4 to this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Hartford, and State of Connecticut on the 27th day of February, 2007.
SECURITY LIFE SEPARATE ACCOUNT L1 (Registrant) By: SECURITY LIFE OF DENVER INSURANCE COMPANY (Depositor) By: /s/ Donald W. Britton* Donald W. Britton President (principal executive officer) |
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 4 to this Registration Statement has been signed below by the following persons in the capacities and on the date indicated.
Signature | Title | Date | ||
/s/ Donald W. Britton* | President | |||
|
||||
Donald W. Britton | (principal executive officer) | |||
/s/ Robert W. Crispin* | Director | |||
|
||||
Robert W. Crispin | ||||
/s/ Thomas J. McInerney* | Director and Chairman | |||
|
||||
Thomas J. McInerney | February | |||
27, 2007 | ||||
/s/ Kathleen A. Murphy* | Director | |||
|
||||
Kathleen A. Murphy | ||||
/s/ Catherine H. Smith* | Director and Senior Vice President | |||
|
||||
Catherine H. Smith | ||||
/s/ David A. Wheat* | Director, Executive Vice President and Chief Financial Officer | |||
|
||||
David A. Wheat | (principal financial officer) | |||
/s/ Steven T. Pierson* | Senior Vice President and Chief Accounting Officer | |||
|
||||
Steven T. Pierson | (principal accounting officer) | |||
By: /s/ J. Neil McMurdie | ||||
|
||||
J. Neil McMurdie | ||||
* Attorney-in-Fact |
SECURITY LIFE SEPARATE ACCOUNT L1 | ||
EXHIBIT INDEX | ||
Exhibit No. | Exhibit | |
26(e)(6) | Form of Overloan Lapse Protection Rider | |
26(k) | Opinion and Consent of Counsel* | |
26(n) | Consent of Independent Registered Public Accounting Firm* | |
26(r) | Powers of Attorney |
* To be filed by amendment. |
Exhibit 26(e)(6): Form of Overloan Lapse Protection Rider
Overloan Lapse Protection Rider |
This Rider is made a part of the Policy to which it is attached (the Policy), provided this Rider is listed in the Policy Data Page. Unless changed by this Rider, all the provisions, exclusions and limitations of the Policy remain the same and apply to this Rider. This Rider is issued in consideration of the application and payment of the Charge for this Rider.
Rider Benefit |
If you exercise this Rider, the Policy will not lapse under your grace period and lapse provisions even if the Policys net cash surrender value, or account value minus the account value of the loan division, as applicable, is not sufficient to pay monthly deductions or policy loan interest when due. This new guarantee supersedes any other death benefit guarantee provision still in force when you exercise this Rider.
Rider Charge |
If you exercise this Rider, we deduct the Rider Charge shown on the Policy Data Page from the account value on the date we receive your request.
Conditions to Exercise Rider |
You may exercise this Rider by sending us a written request on any date that the following conditions are met:
Effect on the Policy of Exercising this Rider |
When you exercise this Rider, we will make the following changes to the Policy, effective on the monthly anniversary on or next following the date we receive your request:
1
We will send you notification of these changes once this Rider has been exercised.
After this Rider is Exercised
After you exercise this Rider:
Amendments |
We may amend this Rider so that it is in compliance with all applicable laws, rules, regulations, interpretations, holdings and orders. When required by law, we will obtain your approval of these changes and obtain approval from all appropriate regulatory authorities.
Nonparticipating |
This Rider does not entitle you to participate in our surplus.
General Provisions |
The incontestability provision of the Policy applies to this Rider from the Rider Issue Date. This Rider does not increase any cash, loan, paid-up insurance, or extended term insurance values of the Policy.
2
Exhibit 26(r): Powers of Attorney |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacity indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
Security Life of Denver Insurance Company:
As Director of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933: | ||||
033-74190 | 333-72753 | 333-119437 | ||
033-78444 | 333-73464 | 333-119438 | ||
033-88148 | 333-90577 | 333-119439 | ||
333-34404 | 333-117329 | 333-120889 | ||
333-50278 | 333-119440 |
Registration Statements filed under the Investment Company Act of 1940:
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 30th day of June, 2006, my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ Robert W. Crispin Robert W. Crispin |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacities indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
As Director of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933:
033-74190 | 333-72753 | 333-119437 | ||||
033-78444 | 333-73464 | 333-119438 | ||||
033-88148 | 333-90577 | 333-119439 | ||||
333-34404 | 333-117329 | 333-120889 | ||||
333-50278 | 333-119440 | |||||
Registration Statements filed under the Investment Company Act of 1940: | ||||||
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 20th day of July, 2006, my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ Thomas J. McInerney Thomas J. McInerney |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacities indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
As Director of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933:
033-74190 | 333-72753 | 333-119437 | ||
033-78444 | 333-73464 | 333-119438 | ||
033-88148 | 333-90577 | 333-119439 | ||
333-34404 | 333-117329 | 333-120889 | ||
333-50278 | 333-119440 |
Registration Statements filed under the Investment Company Act of 1940:
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 30th day of June, 2006, my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ Kathleen A. Murphy Kathleen A. Murphy |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacities indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
As Director of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933: | ||||||
033-74190 | 333-72753 | 333-119437 | ||||
033-78444 | 333-73464 | 333-119438 | ||||
033-88148 | 333-90577 | 333-119439 | ||||
333-34404 | 333-117329 | 333-120889 | ||||
333-50278 | 333-119440 | |||||
Registration Statements filed under the Investment Company Act of 1940: | ||||||
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 30th day of June, 2006, my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ Catherine H. Smith Catherine H. Smith |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacity indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
Security Life of Denver Insurance Company:
As President of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933: | ||||||
033-74190 | 333-72753 | 333-119437 | ||||
033-78444 | 333-73464 | 333-119438 | ||||
033-88148 | 333-90577 | 333-119439 | ||||
333-34404 | 333-117329 | 333-120889 | ||||
333-50278 | 333-119440 | |||||
Registration Statements filed under the Investment Company Act of 1940: | ||||||
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 4th day of July, 2006 my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ Donald W. Britton Donald W Britton |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacities indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
Security Life of Denver Insurance Company:
As Chief Accounting Officer of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933:
033-74190 | 333-72753 | 333-119437 | ||||
033-78444 | 333-73464 | 333-119438 | ||||
033-88148 | 333-90577 | 333-119439 | ||||
333-34404 | 333-117329 | 333-120889 | ||||
333-50278 | 333-119440 | |||||
Registration Statements filed under the Investment Company Act of 1940: | ||||||
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 30th day of June, 2006, my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ Steven T. Pierson Steven T. Pierson |
POWER OF ATTORNEY
Pursuant to Item 601(b)(24) of Regulation SK and Rule 462(b) of the Securities Act of 1933
The undersigned on behalf of the company set forth below hereby constitutes and appoints the individuals set forth below and each of them individually, my true and lawful attorneys, with full power to them and each of them to sign for me, and in my name and in the capacities indicated below, any and all amendments to the Registration Statements listed below filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, and any documentation, including Form N-8F, necessary to de-register any such registrations or to de-register any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
As Director and Chief Financial Officer of Security Life of Denver Insurance Company I hereby appoint Patrick Ivkovich and J. Neil McMurdie.
Registration Statements filed under the Securities Act of 1933: | ||||||
033-74190 | 333-72753 | 333-119437 | ||||
033-78444 | 333-73464 | 333-119438 | ||||
033-88148 | 333-90577 | 333-119439 | ||||
333-34404 | 333-117329 | 333-120889 | ||||
333-50278 | 333-119440 | |||||
Registration Statements filed under the Investment Company Act of 1940: | ||||||
811-08292 | 811-08196 | 811-08976 | 811-09106 |
hereby ratifying and confirming on this 6th day of July, 2006, my signature as it may be signed by my said attorneys to any such Registration Statements and any and all amendments thereto.
Signature /s/ David A. Wheat David A. Wheat |
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